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    SEC Form N-CSRS filed by AllianceBernstein National Municipal Income Fund Inc

    7/5/24 5:20:27 PM ET
    $AFB
    Trusts Except Educational Religious and Charitable
    Finance
    Get the next $AFB alert in real time by email
    N-CSRS 1 d799089dncsrs.htm ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND AllianceBernstein National Municipal Income Fund

     

     

    UNITED STATES

    SECURITIES AND EXCHANGE COMMISSION

    WASHINGTON, D.C. 20549

     

     

    FORM N-CSR

     

     

    CERTIFIED SHAREHOLDER REPORT OF REGISTERED

    MANAGEMENT INVESTMENT COMPANIES

    Investment Company Act file number: 811-10573

     

     

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND, INC.

    (Exact name of registrant as specified in charter)

     

     

    1345 Avenue of the Americas, New York, New York 10105

    (Address of principal executive offices) (Zip code)

     

     

    Stephen M. Woetzel

    AllianceBernstein L.P.

    1345 Avenue of the Americas

    New York, New York 10105

    (Name and address of agent for service)

     

     

    Registrant’s telephone number, including area code: (800) 221-5672

    Date of fiscal year end: October 31, 2024

    Date of reporting period: April 30, 2024

     

     

     


    ITEM 1.

    REPORTS TO STOCKHOLDERS.

     


    APR 04.30.24

    LOGO

    SEMI-ANNUAL REPORT

    ALLIANCEBERNSTEIN
    NATIONAL MUNICIPAL INCOME FUND
    (NYSE: AFB)

     

    LOGO

     


     

     

     
    Investment Products Offered  

    •  Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed

    You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

    The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov.

    AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

    The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein® is a registered service mark used by permission of the owner, AllianceBernstein L.P.


     

    FROM THE PRESIDENT    LOGO

    Dear Shareholder,

    We’re pleased to provide this report for the AllianceBernstein National Municipal Income Fund, Inc. (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

    At AB, we’re striving to help our clients achieve better outcomes by:

     

    +   

    Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

     

    +   

    Applying differentiated investment insights through a connected global research network

     

    +   

    Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

    Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

    For more information about AB’s comprehensive range of products and shareholder resources, please log on to www.abfunds.com.

    Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

    Sincerely,

     

    LOGO

    Onur Erzan

    President and Chief Executive Officer, AB Mutual Funds

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 1


     

    SEMI-ANNUAL REPORT

     

    June 27, 2024

    This report provides management’s discussion of fund performance for the AllianceBernstein National Municipal Income Fund, Inc., for the semi-annual reporting period ended April 30, 2024. The Fund is a closed-end fund, and its shares are listed and traded on the New York Stock Exchange.

    The Fund seeks to provide high current income exempt from regular federal income tax by investing substantially all of its net assets in municipal securities that pay interest that is exempt from federal income tax.

    RETURNS AS OF APRIL 30, 2024 (unaudited)

     

         6 Months      12 Months  
    ALLIANCEBERNSTEIN
    NATIONAL MUNICIPAL INCOME FUND (NAV)
         14.63%        2.16%  
    Bloomberg Municipal Bond Index      7.06%        2.08%  

    The Fund’s market price per share on April 30, 2024, was $10.49. The Fund’s NAV price per share on April 30, 2024, was $12.20. For additional Financial Highlights, please see pages 45-46.

    INVESTMENT RESULTS

    The table above shows the Fund’s performance compared with its benchmark, the Bloomberg Municipal Bond Index, for the six- and 12-month periods ended April 30, 2024.

    For the six-month period, the Fund outperformed the benchmark. Sector allocation, security selection, yield-curve positioning and the Fund’s duration overweight contributed to performance, relative to the benchmark. Relative overweights in state general obligation and not-for-profit health care were the two largest sector contributors, while an overweight to guaranteed bonds detracted.

    For the 12-month period, the Fund outperformed the benchmark. Sector allocation, security selection and yield-curve positioning contributed to performance, while the Fund’s duration overweight detracted from performance. Relative overweights in charter schools and not-for-profit health care were the two largest sector contributors, while an overweight to prerefunded bonds detracted.

    Leverage, achieved through the usage of tender option bond (“TOB”) and variable-rate municipal term preferred shares, added to total return over the six-month period, and detracted over the 12-month period as bond yields rose.

    The Fund did not use derivatives during either period.

     

    2 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


    MARKET REVIEW AND INVESTMENT STRATEGY

    For the six-month period ended April 30, 2024, the yield on a 10-Year 5% coupon AAA municipal bond fell to 2.81% from 3.61% and the yield on the 10-Year US Treasury fell to 4.69% from 4.92%. After-tax spreads tightened materially across the curve indicating municipals became expensive relative to Treasuries. Performance was particularly strong for the first two months of this period however worries about a reacceleration of inflation during the subsequent 4 months of the reporting period dampened the overall return.

    The Fund’s Senior Investment Management Team (the “Team”) continues to focus on real after-tax return by investing in municipal bonds that generate income exempt from federal income taxes. The Team relies on an investment process that combines quantitative and fundamental research to build effective bond portfolios.

    The Fund may purchase municipal securities that are insured under policies issued by certain insurance companies. Historically, insured municipal securities typically received a higher credit rating, which meant that the issuer of the securities paid a lower interest rate. As a result of declines in the credit quality and associated downgrades of most bond insurers, insurance has less value than it did in the past. The market now values insured municipal securities primarily based on the credit quality of the issuer of the security, with little value given to the insurance feature. In purchasing such insured securities, the Adviser evaluates the risk and return of municipal securities through its own research. If an insurance company’s rating is downgraded or the company becomes insolvent, the prices of municipal securities insured by the insurance company may decline. As of April 30, 2024, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity were 12.16% and 0.00%, respectively.

    INVESTMENT POLICIES

    The Fund will normally invest at least 80%, and normally substantially all, of its net assets in municipal securities paying interest that is exempt from regular federal income tax. The Fund also normally will invest at least 75% of its assets in investment-grade municipal securities or unrated municipal securities considered to be of comparable quality. The Fund may invest up to 25% of its net assets in municipal bonds rated below investment-grade and unrated municipal bonds considered to be of comparable quality as determined by the Adviser. The Fund intends to invest primarily in municipal securities that pay interest that is not subject to the federal alternative minimum tax (“AMT”), but may invest without limit in municipal securities paying interest that is subject to the federal AMT. For more information regarding the Fund’s risks, please see “Disclosures and Risks” on pages 4-9 and “Note G—Risks Involved in Investing in the Fund” of the Notes to Financial Statements on pages 39-44.

     

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 3


     

    DISCLOSURES AND RISKS

     

    AllianceBernstein National Municipal Income Fund

    Shareholder Information

    Weekly comparative net asset value (“NAV”) and market price information about the Fund is published each Saturday in Barron’s and in other newspapers in a table called “Closed-End Funds.” Daily NAVs and market price information, and additional information regarding the Fund, is available at www.abfunds.com and www.nyse.com. For additional shareholder information regarding this Fund, please see pages 47-48.

    Benchmark Disclosure

    The Bloomberg Municipal Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Municipal Bond Index represents the performance of the long-term tax-exempt bond market consisting of investment-grade bonds. In addition, the Index does not reflect the use of leverage, whereas the Fund utilizes leverage. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

    A Word About Risk

    Among the risks of investing in the Fund are changes in the general level of interest rates or changes in bond credit quality ratings. Changes in interest rates have a greater effect on bonds with longer maturities than on those with shorter maturities. Please note, as interest rates rise, existing bond prices fall and can cause the value of your investment in the Fund to decline. While the Fund invests principally in bonds and other fixed-income securities, in order to achieve its investment objectives, the Fund may at times use certain types of investment derivatives, such as options, futures, forwards and swaps. These instruments involve risks different from, and in certain cases, greater than, the risks presented by more traditional investments. At the discretion of the Fund’s Adviser, the Fund may invest up to 25% of its net assets in municipal bonds that are rated below investment-grade (i.e., “junk bonds”). These securities involve greater volatility and risk than higher-quality fixed-income securities.

    Financing and Related Transactions; Leverage and Other Risks: The Fund utilizes leverage to seek to enhance the yield and NAV attributable to its common stock. These objectives may not be achieved in all interest-rate environments. Leverage creates certain risks for holders of common stock, including the likelihood of greater volatility of the NAV and market price of the common stock. If income from the securities purchased from the funds made available by leverage is not sufficient to cover the cost of leverage, the Fund’s return will be less than if leverage had not been used.

     

    4 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    DISCLOSURES AND RISKS (continued)

     

    As a result, the amounts available for distribution to common stockholders as dividends and other distributions will be reduced. During periods of rising short-term interest rates, the interest paid on the preferred shares or floaters in TOB transactions would increase, which may adversely affect the Fund’s income and distribution to common stockholders. A decline in distributions would adversely affect the Fund’s yield and possibly the market value of its shares. If rising short-term rates coincide with a period of rising long-term rates, the value of the long-term municipal bonds purchased with the proceeds of leverage would decline, adversely affecting the NAV attributable to the Fund’s common stock and possibly the market value of the shares.

    The Fund’s outstanding Variable Rate MuniFund Term Preferred Shares result in leverage. The Fund may also use other types of financial leverage, including TOB transactions, either in combination with, or in lieu of, the preferred shares. In a TOB transaction, the Fund may transfer a highly rated fixed-rate municipal security into a special purpose entity (typically, a trust). The Fund receives cash and a residual interest security (sometimes referred to as an “inverse floater”) issued by the trust in return. The trust simultaneously issues securities, which pay an interest rate that is reset each week based on an index of high-grade short-term [seven-day] demand notes. These securities, sometimes referred to as “floaters”, are bought by third parties, including tax-exempt money market funds, and can be tendered by these holders to a liquidity provider at par, unless certain events occur. The Fund continues to earn all the interest from the transferred bond less the amount of interest paid on the floaters and the expenses of the trust, which include payments to the trustee and the liquidity provider and organizational costs. The Fund also uses the cash received from the transaction for investment purposes or to retire other forms of leverage. Under certain circumstances, the trust may be terminated and collapsed, either by the Fund or upon the occurrence of certain events, such as a downgrade in the credit quality of the underlying bond, or in the event holders of the floaters tender their securities to the liquidity provider. See Note H to the financial statements for more information about TOB transactions.

    The use of derivative instruments by the Fund, such as forwards, futures, options and swaps, may also result in a form of leverage.

    Because the advisory fees received by the Adviser are based on the total net assets of the Fund (including assets supported by the proceeds of the Fund’s outstanding preferred shares), the Adviser has a financial incentive for the Fund to keep its preferred shares outstanding, which may create a conflict of interest between the Adviser and the common shareholders of the Fund.

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 5


     

    DISCLOSURES AND RISKS (continued)

     

    Tax Risk: There is no guarantee that the income on the Fund’s municipal securities will be exempt from regular federal income and state income taxes. Unfavorable legislation, adverse interpretations by federal or state authorities, litigation or noncompliant conduct by the issuer of a municipal security could affect the tax-exempt status of municipal securities. If the Internal Revenue Service or a state authority determines that an issuer of a municipal security has not complied with applicable requirements, interest from the security could become subject to regular federal income tax and/or state personal income tax, possibly retroactively to the date the security was issued, the value of the security could decline significantly, and a portion of the distributions to Fund shareholders could be recharacterized as taxable. Recent federal legislation included reductions in tax rates for individuals, with relatively larger reductions in tax rates for corporations. These tax rate reductions may reduce the demand for municipal bonds which could reduce the value of municipal bonds held by the Fund.

    Market Risk: The market value of a security may move up or down, sometimes rapidly and unpredictably. These fluctuations may cause a security to be worth less than the price originally paid for it, or less than it was worth at an earlier time. Market risk may affect a single issuer, industry, sector of the economy or the market as a whole. Global economies and financial markets are increasingly interconnected, which increases the probabilities that conditions in one country or region might adversely impact issuers in a different country or region. Conditions affecting the general economy, including political, social, or economic instability at the local, regional, or global level may also affect the market value of a security. Health crises, such as pandemic and epidemic diseases, as well as other incidents that interrupt the expected course of events, such as natural disasters, including fires, earthquakes and flooding, war or civil disturbance, acts of terrorism, power outages and other unforeseeable and external events, and the public response to or fear of such diseases or events, have had, and may in the future have, an adverse effect on the Fund’s investments and NAV and can lead to increased market volatility. For example, the diseases or events themselves or any preventative or protective actions that governments may take in respect of such diseases or events may result in periods of business disruption, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for issuers of securities held by the Fund. The occurrence and pendency of such diseases or events could adversely affect the economies and financial markets either in specific countries or worldwide.

    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 Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, public

     

    6 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    DISCLOSURES AND RISKS (continued)

     

    health crises, uncertainties related to the tax status of municipal securities, and the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state’s municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. The Fund’s 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 project’s ability to make payments of principal and interest on these securities.

    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 and accrued interest. 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.

    Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

    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 Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

    Derivatives Risk: The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 7


     

    DISCLOSURES AND RISKS (continued)

     

    involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

    Illiquid Investments Risk: Illiquid investments risk exists when particular investments are or become difficult to purchase or sell, possibly preventing the Fund from selling out of these securities at an advantageous price. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be magnified in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk than most other types of investments. The Fund is subject to illiquid investments risk because the market for municipal securities is generally smaller than many other markets, which may make municipal securities more difficult to trade than other types of securities. Illiquid securities may also be difficult to value.

    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 the 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.

    Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

    These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

    An Important Note About Historical Performance

    The performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. All fees and expenses related to the operation of the Fund have been

     

    8 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    DISCLOSURES AND RISKS (continued)

     

    deducted. Performance assumes reinvestment of distributions and does not account for taxes. Historical performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the sale of fund shares and assumes the reinvestment of dividends and capital gains distributions at prices obtained pursuant to the Fund’s dividend reinvestment plan.

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 9


     

    HISTORICAL PERFORMANCE

     

    AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2024 (unaudited)

     

        NAV Returns     Market Price  
    1 Year     2.16%       1.14%  
    5 Years     0.44%       -0.02%  
    10 Years     3.19%       1.96%  

    AVERAGE ANNUAL RETURNS

    AS OF THE MOST RECENT CALENDAR QUARTER-END

    MARCH 31, 2024 (unaudited)

     

        NAV Returns     Market Price  
    1 Year     4.49%       4.20%  
    5 Years     1.08%       0.97%  
    10 Years     3.66%       2.85%  

    Performance assumes the reinvestment of dividends and capital gains distributions at prices obtained pursuant to the Fund’s dividend reinvestment plan.

     

    10 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    PORTFOLIO SUMMARY

    April 30, 2024 (unaudited)

     

    PORTFOLIO STATISTICS

    Net Assets ($mil): $350.6

     

     

     

    LOGO

     

    1

    The Fund’s quality rating breakdown is expressed as a percentage of the Fund’s total investments in municipal securities and may vary over time. The quality ratings are determined by using the S&P Global Ratings (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Ltd. (“Fitch”). A measure of the quality and safety of a bond or portfolio, based on the issuer’s financial condition. AAA is highest (best) and D is lowest (worst). If applicable, the pre-refunded category includes bonds which are secured by U.S. Government Securities and therefore have been deemed high-quality investment grade by the Adviser. If applicable, Not Applicable (N/A) includes non-creditworthy investments such as equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a Nationally Recognized Statistical Rating Organization. The Adviser evaluates the creditworthiness of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment.

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 11


     

    PORTFOLIO OF INVESTMENTS

    April 30, 2024 (unaudited)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    MUNICIPAL OBLIGATIONS – 162.3%

     

    Long-Term Municipal Bonds – 162.3%

     

    Alabama – 0.9%

     

    County of Jefferson AL Sewer Revenue
    Series 2024
    5.25%, 10/01/2049

       $ 3,000     $ 3,154,070  
        

     

     

     

    Alaska – 0.3%

     

    Municipality of Anchorage AK Solid Waste Services Revenue
    Series 2022-A
    5.25%, 11/01/2062

         1,000       1,045,774  
        

     

     

     

    Arizona – 3.2%

     

    Arizona Industrial Development Authority
    (Heritage Academy Laveen & Gateway Obligated Group)
    Series 2021
    5.00%, 07/01/2051(a)

         1,000       863,072  

    Salt Verde Financial Corp.
    (Citigroup, Inc.)
    Series 2007
    5.00%, 12/01/2032

         1,200       1,261,810  

    5.00%, 12/01/2037

         8,700       9,244,127  
        

     

     

     
           11,369,009  
        

     

     

     

    Arkansas – 0.6%

     

    Pulaski County Public Facilities Board
    (Baptist Health Obligated Group)
    Series 2014
    5.00%, 12/01/2042

         2,000       2,000,741  
        

     

     

     

    California – 8.5%

     

    Alameda Corridor Transportation Authority
    Series 2022-A
    5.40%, 10/01/2050(b)

         10,000       5,263,416  

    AGM Series 2024-A
    Zero Coupon, 10/01/2052

         6,500       1,650,644  

    Zero Coupon, 10/01/2053

         6,000       1,439,465  

    California Pollution Control Financing Authority
    (Poseidon Resources Channelside LP)
    Series 2012
    5.00%, 07/01/2037(a)

         3,075       3,076,360  

    California Statewide Communities Development Authority
    (Enloe Medical Center Obligated Group)
    AGM Series 2022-A
    5.375%, 08/15/2057

         2,000       2,136,145  

     

    12 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    PORTFOLIO OF INVESTMENTS (continued)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    California Statewide Communities Development Authority
    (Loma Linda University Medical Center)
    Series 2016-A
    5.00%, 12/01/2036(a)

       $ 800     $ 810,801  

    5.25%, 12/01/2056(a)

         2,000       2,009,026  

    Long Beach Bond Finance Authority
    (Bank of America Corp.)
    Series 2007-A
    5.50%, 11/15/2037

         2,000       2,237,997  

    M-S-R Energy Authority
    (Citigroup, Inc.)
    Series 2009-A
    6.50%, 11/01/2039

         2,000       2,494,462  

    Series 2009-C
    6.50%, 11/01/2039

         2,000       2,494,462  

    Southern California Public Power Authority
    (Goldman Sachs Group, Inc. (The))
    Series 2007-A
    5.00%, 11/01/2033

         3,335       3,501,671  

    Washington Township Health Care District
    AGM Series 2023-B
    4.50%, 08/01/2053

         2,625       2,659,052  
        

     

     

     
           29,773,501  
        

     

     

     

    Colorado – 3.3%

     

    Colorado Health Facilities Authority
    (CommonSpirit Health)
    Series 2019-A
    5.00%, 08/01/2044

         705       724,454  

    Public Authority for Colorado Energy
    (Bank of America Corp.)
    Series 2008
    6.50%, 11/15/2038

         8,975       10,828,745  
        

     

     

     
           11,553,199  
        

     

     

     

    Connecticut – 0.3%

     

    Connecticut State Health & Educational Facilities Authority
    (University of Hartford (The))
    Series 2019
    4.00%, 07/01/2049

         1,500       1,089,651  
        

     

     

     

    Florida – 9.4%

     

    County of Miami-Dade FL
    Series 2021
    4.00%, 07/01/2050

         6,355       5,876,443  

    Florida Development Finance Corp.
    (Brightline Trains Florida LLC)
    AGM Series 2024
    5.25%, 07/01/2053(c)

         2,000       2,082,883  

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 13


     

    PORTFOLIO OF INVESTMENTS (continued)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    Florida Development Finance Corp.
    (Cornerstone Charter Academy, Inc. Obligated Group)
    Series 2022
    5.125%, 10/01/2052(a)

       $ 1,000     $ 940,842  

    Florida Development Finance Corp.
    (Mater Academy, Inc.)
    Series 2022-A
    4.00%, 06/15/2052

         3,250       2,578,744  

    Florida Higher Educational Facilities Financial Authority
    (Ringling College of Art and Design, Inc.)
    Series 2017
    5.00%, 03/01/2042

         1,000       1,003,543  

    Lakewood Ranch Stewardship District
    (Lakewood Ranch Stewardship District Series 2023 Assessment)
    Series 2023
    6.30%, 05/01/2054

         990       1,029,897  

    Miami-Dade County Expressway Authority
    Series 2014-A
    5.00%, 07/01/2044

         5,000       4,767,244  

    Palm Beach County Health Facilities Authority
    (Baptist Health South Florida Obligated Group)
    Series 2019
    3.00%, 08/15/2044

         8,000       6,123,003  

    School District of Broward County/FL
    Series 2022
    5.00%, 07/01/2046

         8,020       8,591,791  
        

     

     

     
           32,994,390  
        

     

     

     

    Georgia – 3.6%

     

    Augusta Development Authority
    (WellStar Health System Obligated Group)
    Series 2018
    5.00%, 07/01/2036

         4,170       4,352,276  

    Main Street Natural Gas, Inc.
    (Citadel LP)
    Series 2022-C
    4.00%, 08/01/2052(a)

         1,000       970,690  

    Municipal Electric Authority of Georgia
    Series 2019
    5.00%, 01/01/2038

         100       102,319  

    5.00%, 01/01/2049

         2,000       2,021,422  

    5.00%, 01/01/2063

         3,165       3,202,423  

    Series 2021
    4.00%, 01/01/2046

         330       295,783  

     

    14 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    PORTFOLIO OF INVESTMENTS (continued)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    4.00%, 01/01/2051

       $ 1,275     $ 1,122,739  

    5.00%, 01/01/2056

         650       651,785  
        

     

     

     
           12,719,437  
        

     

     

     

    Illinois – 16.7%

     

    Chicago Board of Education
    Series 2018-D
    5.00%, 12/01/2046

         5,005       4,905,250  

    Chicago O’Hare International Airport
    Series 2017-D
    5.00%, 01/01/2042

         6,500       6,576,696  

    Series 2022
    4.625%, 01/01/2053

         6,000       5,871,420  

    Illinois Finance Authority
    (Bradley University)
    Series 2021-A
    4.00%, 08/01/2051

         4,750       3,977,306  

    Illinois Finance Authority
    (OSF Healthcare System Obligated Group)
    Series 2015-A
    5.00%, 11/15/2045

         4,500       4,527,679  

    Illinois Finance Authority
    (University of Illinois)
    Series 2020
    4.00%, 10/01/2055

         3,565       2,900,317  

    Metropolitan Pier & Exposition Authority
    Series 2017-A
    5.00%, 06/15/2057

         8,755       8,854,835  

    State of Illinois
    Series 2014
    5.00%, 04/01/2030

         1,655       1,656,468  

    5.00%, 05/01/2030

         1,300       1,301,156  

    5.00%, 05/01/2033

         1,150       1,151,069  

    5.00%, 02/01/2039

         2,400       2,401,453  

    Series 2017-D
    5.00%, 11/01/2028

         5,000       5,217,756  

    Series 2018-A
    5.00%, 10/01/2027

         1,000       1,043,560  

    Series 2022-C
    5.50%, 10/01/2040

         6,250       6,889,419  

    Village of Elk Grove Village IL
    Series 2017
    5.00%, 01/01/2028

         1,060       1,107,799  
        

     

     

     
           58,382,183  
        

     

     

     

    Indiana – 0.8%

     

    Indiana Finance Authority
    (University of Evansville)
    Series 2022
    5.25%, 09/01/2057

         3,000       2,748,344  
        

     

     

     

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 15


     

    PORTFOLIO OF INVESTMENTS (continued)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    Iowa – 1.5%

     

    Iowa Finance Authority
    (Iowa Fertilizer Co., LLC)
    Series 2022
    5.00%, 12/01/2050

       $ 5,000     $ 5,204,901  
        

     

     

     

    Louisiana – 4.8%

     

    City of New Orleans LA
    Series 2021-A
    5.00%, 12/01/2046

         15,000       15,678,929  

    Parish of St. John the Baptist LA
    (Marathon Oil Corp.)
    Series 2019
    2.10%, 06/01/2037

         235       233,951  

    2.20%, 06/01/2037

         950       904,270  
        

     

     

     
           16,817,150  
        

     

     

     

    Maryland – 0.6%

     

    Maryland Economic Development Corp.
    (Maryland Economic Development Corp. Morgan View & Thurgood Marshall Student Hsg)
    Series 2022
    6.00%, 07/01/2058

         2,000       2,178,350  
        

     

     

     

    Massachusetts – 6.2%

     

    Commonwealth of Massachusetts
    Series 2023
    5.00%, 05/01/2053

         10,000       10,630,307  

    Series 2023-D
    5.00%, 10/01/2053

         5,000       5,326,938  

    Massachusetts Development Finance Agency
    (Emerson College)
    Series 2016-A
    5.00%, 01/01/2047

         5,750       5,677,555  
        

     

     

     
           21,634,800  
        

     

     

     

    Michigan – 9.9%

     

    Ann Arbor School District
    AGM Series 2023
    4.00%, 05/01/2042

         4,170       4,152,747  

    City of Detroit MI
    Series 2020
    5.50%, 04/01/2050

         1,970       2,041,067  

    Series 2023-C
    6.00%, 05/01/2043

         2,300       2,545,410  

    Detroit City School District
    AGM Series 2001-A
    6.00%, 05/01/2029

         7,875       8,372,475  

     

    16 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    PORTFOLIO OF INVESTMENTS (continued)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    Detroit Downtown Development Authority
    (Detroit Downtown Development Authority Catalyst Development Area)
    AGM Series 2018-A
    5.00%, 07/01/2043

       $ 3,020     $ 3,019,610  

    5.00%, 07/01/2048

         10,000       9,716,989  

    Michigan Finance Authority
    (Great Lakes Water Authority Water Supply System Revenue)
    AGM Series 2014-D1
    5.00%, 07/01/2035

         1,250       1,251,950  

    Michigan Finance Authority
    (Public Lighting Authority)
    Series 2014-B
    5.00%, 07/01/2034

         2,250       2,253,719  

    Plymouth Educational Center Charter School
    Series 2005
    5.125%, 11/01/2023(d)(e)

         2,140       1,305,400  
        

     

     

     
           34,659,367  
        

     

     

     

    Minnesota – 2.7%

     

    City of Ramsey MN
    (Pact Charter School)
    Series 2022-A
    5.00%, 06/01/2032

         1,000       1,003,342  

    City of Rochester MN
    (Mayo Clinic)
    Series 2018
    4.00%, 11/15/2048

         3,000       2,887,421  

    Duluth Economic Development Authority
    (Essentia Health Obligated Group)
    Series 2018
    5.00%, 02/15/2053

         5,625       5,673,116  
        

     

     

     
           9,563,879  
        

     

     

     

    Nebraska – 2.7%

     

    Central Plains Energy Project
    (Goldman Sachs Group, Inc. (The))
    Series 2017-A
    5.00%, 09/01/2029

         4,000       4,190,559  

    5.00%, 09/01/2031

         5,000       5,260,445  
        

     

     

     
           9,451,004  
        

     

     

     

    Nevada – 2.5%

     

    Las Vegas Valley Water District
    Series 2022-A
    4.00%, 06/01/2051

         8,645       8,068,236  

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 17


     

    PORTFOLIO OF INVESTMENTS (continued)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    State of Nevada Department of Business & Industry
    (DesertXpress Enterprises LLC)
    Series 2023
    8.125%, 01/01/2050(a)

       $ 695     $ 713,448  
        

     

     

     
           8,781,684  
        

     

     

     

    New Hampshire – 2.4%

     

    New Hampshire Business Finance Authority
    Series 2022-1, Class A
    4.375%, 09/20/2036

         2,930       2,825,957  

    Series 2022-2, Class A
    4.00%, 10/20/2036

         2,940       2,743,683  

    New Hampshire Business Finance Authority
    (Covanta Holding Corp.)
    Series 2020-A
    3.625%, 07/01/2043(a)

         1,000       787,050  

    New Hampshire Health and Education Facilities Authority Act
    (Dartmouth-Hitchcock Obligated Group)
    Series 2020-A
    5.00%, 08/01/2059

         2,000       2,022,322  
        

     

     

     
           8,379,012  
        

     

     

     

    New Jersey – 8.1%

     

    New Jersey Economic Development Authority
    (NYNJ Link Borrower LLC)
    Series 2013
    5.125%, 01/01/2034

         1,000       1,000,391  

    New Jersey Economic Development Authority
    (Pre-refunded – US Treasuries)
    Series 2014-P
    5.00%, 06/15/2031

         2,500       2,502,663  

    New Jersey Health Care Facilities Financing Authority
    (New Jersey Transportation Trust Fund Authority State Lease)
    Series 2017
    5.00%, 10/01/2036

         2,500       2,597,881  

    New Jersey Health Care Facilities Financing Authority
    (RWJ Barnabas Health Obligated Group)
    Series 2014
    5.00%, 07/01/2044

         6,450       6,453,786  

    New Jersey Transportation Trust Fund Authority
    (New Jersey Transportation Fed Hwy Grant)
    Series 2016
    5.00%, 06/15/2029

         4,750       4,870,733  

     

    18 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    PORTFOLIO OF INVESTMENTS (continued)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    New Jersey Transportation Trust Fund Authority
    (New Jersey Transportation Trust Fund Authority State Lease)
    Series 2019-B
    4.00%, 06/15/2037

       $ 800     $ 798,463  

    South Jersey Transportation Authority
    Series 2022
    4.625%, 11/01/2047

         1,000       1,001,473  

    Tobacco Settlement Financing Corp./NJ
    Series 2018-A
    5.25%, 06/01/2046

         8,990       9,306,195  
        

     

     

     
           28,531,585  
        

     

     

     

    New York – 10.3%

     

    City of New York NY
    Series 2023
    4.125%, 08/01/2053

         11,300       10,840,383  

    5.00%, 08/01/2051

         2,000       2,122,623  

    Long Island Power Authority
    Series 2023-E
    5.00%, 09/01/2053

         3,500       3,745,035  

    Metropolitan Transportation Authority
    (Pre-refunded – US Govt Agencies)
    Series 2014-B
    5.25%, 11/15/2034

         4,000       4,006,650  

    New York City Transitional Finance Authority Future Tax Secured Revenue
    Series 2015A-1
    5.00%, 08/01/2034

         6,000       6,093,660  

    5.00%, 08/01/2037

         4,000       4,051,699  

    New York State Thruway Authority
    (State of New York Pers Income Tax)
    Series 2022
    4.125%, 03/15/2056

         4,000       3,726,434  

    Ulster County Capital Resource Corp.
    (Woodland Pond at New Paltz)
    Series 2017
    5.00%, 09/15/2037

         490       400,950  

    5.25%, 09/15/2042

         205       161,790  

    5.25%, 09/15/2047

         355       265,957  

    5.25%, 09/15/2053

         760       547,107  
        

     

     

     
           35,962,288  
        

     

     

     

    North Carolina – 1.3%

     

    Greater Asheville Regional Airport Authority
    AGM Series 2023
    5.25%, 07/01/2053

         4,000       4,206,910  

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 19


     

    PORTFOLIO OF INVESTMENTS (continued)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    North Carolina Turnpike Authority
    AGM Series 2024
    Zero Coupon, 01/01/2053

       $ 1,000     $ 236,593  
        

     

     

     
           4,443,503  
        

     

     

     

    North Dakota – 0.7%

     

    City of Grand Forks ND
    (Altru Health System Obligated Group)
    AGM Series 2023-A
    5.00%, 12/01/2053

         2,000       2,037,254  

    County of Ward ND
    (Trinity Health Obligated Group)
    Series 2017-C
    5.00%, 06/01/2043

         500       450,322  
        

     

     

     
           2,487,576  
        

     

     

     

    Ohio – 3.2%

     

    Buckeye Tobacco Settlement Financing Authority
    Series 2020-A
    4.00%, 06/01/2048

         2,000       1,780,840  

    City of Chillicothe OH
    (Adena Health System Obligated Group)
    Series 2017
    5.00%, 12/01/2047

         1,800       1,815,452  

    County of Cuyahoga OH
    (MetroHealth System (The))
    Series 2017
    5.00%, 02/15/2052

         2,240       2,183,193  

    5.50%, 02/15/2052

         4,585       4,640,417  

    Ohio Higher Educational Facility Commission
    (Kenyon College)
    Series 2020
    4.00%, 07/01/2040

         730       722,881  
        

     

     

     
           11,142,783  
        

     

     

     

    Oklahoma – 2.5%

     

    Oklahoma City Airport Trust
    Series 2018
    5.00%, 07/01/2043

         2,000       2,038,036  

    5.00%, 07/01/2047

         5,000       5,056,973  

    Tulsa Airports Improvement Trust
    (Pre-refunded – US Treasuries)
    BAM Series 2015-A
    5.00%, 06/01/2045

         1,700       1,700,446  
        

     

     

     
           8,795,455  
        

     

     

     

    Oregon – 0.4%

     

    Multnomah County School District No. 40
    Series 2023-A
    Zero Coupon, 06/15/2051

         5,000       1,265,005  
        

     

     

     

     

    20 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    PORTFOLIO OF INVESTMENTS (continued)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    Pennsylvania – 7.3%

     

    Allegheny County Hospital Development Authority
    (Allegheny Health Network Obligated Group)
    Series 2018-A
    5.00%, 04/01/2047

       $ 5,000     $ 5,059,955  

    Berks County Municipal Authority (The)
    (Tower Health Obligated Group)
    Series 2020-B
    5.00%, 02/01/2040

         1,000       639,132  

    Bucks County Industrial Development Authority
    (Grand View Hospital/Sellersville PA Obligated Group)
    Series 2021
    4.00%, 07/01/2051

         2,250       1,626,108  

    Chester County Industrial Development Authority
    (Collegium Charter School)
    Series 2022
    6.00%, 10/15/2052(a)

         1,000       1,001,248  

    Pennsylvania Economic Development Financing Authority
    (Commonwealth of Pennsylvania Department of Transportation)
    AGM Series 2022
    5.75%, 12/31/2062

         7,500       8,267,792  

    Pennsylvania Economic Development Financing Authority
    (PA Bridges Finco LP)
    Series 2015
    5.00%, 12/31/2038

         1,940       1,944,492  

    5.00%, 06/30/2042

         6,060       5,958,836  

    Scranton School District/PA
    BAM Series 2017-E
    4.00%, 12/01/2037

         1,025       993,962  
        

     

     

     
           25,491,525  
        

     

     

     

    Puerto Rico – 0.2%

     

    Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue
    Series 2019-A
    4.329%, 07/01/2040

         615       600,219  
        

     

     

     

    South Carolina – 5.1%

     

    South Carolina Jobs-Economic Development Authority
    (Prisma Health Obligated Group)
    Series 2018-A
    5.00%, 05/01/2048

         5,900       5,946,595  

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 21


     

    PORTFOLIO OF INVESTMENTS (continued)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    South Carolina Ports Authority
    (Pre-refunded – US Treasuries)
    Series 2015
    5.00%, 07/01/2045

       $ 5,000     $ 5,066,886  

    South Carolina Public Service Authority
    Series 2016-B
    5.00%, 12/01/2041

         5,000       5,062,716  

    Series 2022
    3.00%, 12/01/2046

         1,132       775,695  

    3.00%, 12/01/2049

         1,566       1,029,322  
        

     

     

     
           17,881,214  
        

     

     

     

    South Dakota – 0.2%

     

    County of Lincoln SD
    (Augustana College Association/SD)
    Series 2021
    4.00%, 08/01/2061

         1,000       757,955  
        

     

     

     

    Tennessee – 0.1%

     

    Chattanooga Health Educational & Housing Facility Board
    (CommonSpirit Health)
    Series 2019-A
    4.00%, 08/01/2037

         145       142,455  

    4.00%, 08/01/2038

         275       265,336  
        

     

     

     
           407,791  
        

     

     

     

    Texas – 26.8%

     

    Arlington Higher Education Finance Corp.
    (Uplift Education)
    Series 2023-A
    4.375%, 12/01/2058

         3,000       2,837,760  

    Baytown Municipal Development District
    (Baytown Municipal Development District Baytown Convention Center Hotel Revenue Hotel Occupancy Tax)
    Series 2021
    4.00%, 10/01/2050

         1,635       1,022,957  

    Celina Independent School District
    Series 2023
    4.00%, 02/15/2053

         10,000       9,352,574  

    County of Smith TX
    Series 2023
    5.00%, 08/15/2048

         7,000       7,443,601  

    Dallas Independent School District
    Series 2024
    4.00%, 02/15/2054

         12,000       11,134,673  

    Denton Independent School District
    Series 2023
    5.00%, 08/15/2048

         10,000       10,744,246  

     

    22 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    PORTFOLIO OF INVESTMENTS (continued)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    Hidalgo County Regional Mobility Authority
    Series 2022-A
    Zero Coupon, 12/01/2043

       $ 2,000     $ 744,643  

    Zero Coupon, 12/01/2044

         2,420       843,041  

    Zero Coupon, 12/01/2045

         3,360       1,100,407  

    Lamar Consolidated Independent School District
    Series 2023-A
    5.00%, 02/15/2053

         15,000       15,863,668  

    Melissa Independent School District
    Series 2023
    4.25%, 02/01/2053

         12,780       12,473,338  

    New Hope Cultural Education Facilities Finance Corp.
    (CHF-Collegiate Housing Denton LLC)
    AGM Series 2018-A1
    5.00%, 07/01/2038

         500       509,427  

    Pflugerville Independent School District
    Series 2023-A
    4.00%, 02/15/2044

         5,000       4,805,986  

    Prosper Independent School District
    Series 2024
    4.00%, 02/15/2054

         15,000       14,035,985  

    Texas Water Development Board
    (State Water Implementation Revenue Fund for Texas)
    Series 2022
    5.00%, 10/15/2057

         1,000       1,053,319  
        

     

     

     
           93,965,625  
        

     

     

     

    Utah – 2.0%

     

    City of Salt Lake City UT Airport Revenue
    Series 2018-A
    5.00%, 07/01/2048

         2,500       2,530,690  

    BAM Series 2018-A
    5.00%, 07/01/2043

         4,500       4,597,579  
        

     

     

     
           7,128,269  
        

     

     

     

    Virginia – 1.4%

     

    Virginia Small Business Financing Authority
    (Capital Beltway Express LLC)
    Series 2022
    5.00%, 12/31/2047

         5,000       5,061,448  
        

     

     

     

    Washington – 2.6%

     

    Grays Harbor County Public Hospital District No. 1
    Series 2023
    6.875%, 12/01/2053

         1,000       1,013,197  

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 23


     

    PORTFOLIO OF INVESTMENTS (continued)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    State of Washington
    Series 2023-2
    5.00%, 08/01/2048

       $ 7,685     $ 8,254,469  
        

     

     

     
           9,267,666  
        

     

     

     

    West Virginia – 1.1%

     

    West Virginia Hospital Finance Authority
    (West Virginia United Health System Obligated Group)
    Series 2018-A
    5.00%, 06/01/2052

         3,875       3,919,820  
        

     

     

     

    Wisconsin – 8.1%

     

    Wisconsin Public Finance Authority
    (CFC-SA LLC)
    Series 2022
    5.00%, 02/01/2062

         10,000       9,523,535  

    Wisconsin Public Finance Authority
    (CHF – Wilmington LLC)
    AGM Series 2018
    5.00%, 07/01/2058

         10,000       10,110,701  

    Wisconsin Public Finance Authority
    (Moses H Cone Memorial Hospital Obligated Group)
    Series 2022-A
    5.00%, 10/01/2052

         5,000       5,233,631  

    Wisconsin Public Finance Authority
    (Pre-refunded – US Treasuries)
    Series 2022
    4.00%, 04/01/2052(a)

         90       96,311  

    Wisconsin Public Finance Authority
    (Queens University of Charlotte)
    Series 2022
    5.25%, 03/01/2047

         2,000       2,010,836  

    Wisconsin Public Finance Authority
    (Southeastern Regional Medical Center Obligated Group)
    Series 2021
    4.00%, 02/01/2037

         1,505       1,244,734  
        

     

     

     
           28,219,748  
        

     

     

     

    Total Municipal Obligations
    (cost $577,327,831)

           568,829,921  
        

     

     

     

    COMMERCIAL MORTGAGE-BACKED SECURITIES – 2.0%

     

    Non-Agency Fixed Rate CMBS – 2.0%

     

    California Housing Finance Agency
    Series 2019-2, Class A
    4.00%, 03/20/2033

         1,091       1,086,640  

     

    24 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    PORTFOLIO OF INVESTMENTS (continued)

     

         Principal
    Amount
    (000)
        U.S. $ Value  

     

     

    Series 2021-1, Class A
    3.50%, 11/20/2035

       $ 954     $ 881,033  

    National Finance Authority
    Series 2023-2, Class A
    3.875%, 01/20/2038

         2,975       2,705,433  

    New Hampshire Business Finance Authority
    Series 2020-1, Class A
    4.125%, 01/20/2034

         753       723,812  

    Washington State Housing Finance Commission
    Series 2021-1, Class A
    3.50%, 12/20/2035

         957       869,590  

    Series 2023-1, Class A
    3.375%, 04/20/2037

         997       875,591  
        

     

     

     

    Total Commercial Mortgage-Backed Securities
    (cost $7,744,660)

           7,142,099  
        

     

     

     
         Shares        

    SHORT-TERM INVESTMENTS – 0.2%

     

    Investment Companies – 0.2%

     

    AB Fixed Income Shares, Inc. – Government
    Money Market Portfolio – Class AB, 5.21%(f)(g)(h)
    (cost $734,443)

         734,443       734,443  
        

     

     

     

    Total Investments – 164.5%
    (cost $585,806,934)

           576,706,463  

    Other assets less liabilities – (64.5)%

           (226,129,665 ) 
     

     

     

     

    Net Assets – 100.0%

         $ 350,576,798  
        

     

     

     

     

    (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 April 30, 2024, the aggregate market value of these securities amounted to $11,268,848 or 3.2% of net assets.

     

    (b)

    Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at April 30, 2024.

     

    (c)

    When-Issued or delayed delivery security.

     

    (d)

    Defaulted matured security.

     

    (e)

    Non-income producing security.

     

    (f)

    Affiliated investments.

     

    (g)

    The rate shown represents the 7-day yield as of period end.

     

    (h)

    To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800) 227-4618.

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 25


     

    PORTFOLIO OF INVESTMENTS (continued)

     

    As of April 30, 2024, the Fund’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 12.2% and 0.0%, respectively.

    Glossary:

    AGM – Assured Guaranty Municipal

    BAM – Build American Mutual

    CMBS – Commercial Mortgage-Backed Securities

    OSF – Order of St. Francis

    See notes to financial statements.

     

    26 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    STATEMENT OF ASSETS & LIABILITIES

    April 30, 2024 (unaudited)

     

    Assets

     

    Investments in securities, at value

      

    Unaffiliated issuers (cost $585,072,491)

       $ 575,972,020  

    Affiliated issuers (cost $734,443)

         734,443  

    Cash

         43  

    Interest receivable

         8,369,409  

    Receivable for investment securities sold

         930,000  

    Affiliated dividends receivable

         1,854  

    Receivable due from Adviser

         51  
      

     

     

     

    Total assets

         586,007,820  
      

     

     

     
    Liabilities   

    Variable Rate MuniFund Term Preferred Shares, at liquidation value (net of unamortized deferred offering cost of $109,681)

         232,015,319  

    Payable for investment securities purchased

         2,080,460  

    Interest expense payable

         906,948  

    Advisory fee payable

         263,621  

    Directors’ fees payable

         710  

    Accrued expenses

         163,964  
      

     

     

     

    Total liabilities

         235,431,022  
      

     

     

     

    Net Assets Applicable to Common Shareholders

       $  350,576,798  
      

     

     

     
    Composition of Net Assets Applicable to Common Shareholders   

    Common stock, $.001 par value per share; 1,999,990,715 shares authorized, 28,744,936 shares issued and outstanding

       $ 28,745  

    Additional paid-in capital

         403,124,969  

    Accumulated loss

         (52,576,916 ) 
      

     

     

     

    Net Assets Applicable to Common Shareholders

       $ 350,576,798  
      

     

     

     

    Net Asset Value Applicable to Common Shareholders (based on 28,744,936 common shares outstanding)

       $ 12.20  
      

     

     

     

    See notes to financial statements.

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 27


     

    STATEMENT OF OPERATIONS

    Six Months Ended April 30, 2024 (unaudited)

     

    Investment Income     

    Interest

       $  12,755,300    

    Dividends—Affiliated issuers

         157,958     $ 12,913,258  
      

     

     

       
    Expenses     

    Advisory fee (see Note B)

         1,608,648    

    Custody and accounting

         51,288    

    Audit and tax

         33,899    

    Printing

         26,368    

    Transfer agency

         23,275    

    Legal

         20,964    

    Registration fees

         14,688    

    Directors’ fees and expenses

         10,492    

    Miscellaneous

         30,257    
      

     

     

       

    Total expenses before interest expense, fees and amortization of offering costs

         1,819,879    

    Interest expense, fees and amortization of offering costs

         5,391,827    
      

     

     

       

    Total expenses

         7,211,706    

    Less: expenses waived and reimbursed by the Adviser (see Note B)

         (4,529 )   
      

     

     

       

    Net expenses

           7,207,177  
        

     

     

     

    Net investment income

           5,706,081  
        

     

     

     
    Realized and Unrealized Gain (Loss) on Investment Transactions     

    Net realized loss on investment transactions

           (5,337,868 ) 

    Net change in unrealized appreciation (depreciation) of investments

           44,190,914  
        

     

     

     

    Net gain on investment transactions

           38,853,046  
        

     

     

     

    Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations

         $  44,559,127  
        

     

     

     

    See notes to financial statements.

     

    28 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

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    STATEMENT OF CHANGES IN NET ASSETS

    APPLICABLE TO COMMON SHAREHOLDERS

     

         Six Months Ended
    April 30, 2024
    (unaudited)
        Year Ended
    October 31,
    2023
     
    Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations     

    Net investment income

       $ 5,706,081     $ 11,448,337  

    Net realized loss on investment transactions

         (5,337,868 )      (19,797,593 ) 

    Net change in unrealized appreciation (depreciation) of investments

         44,190,914       7,129,588  
      

     

     

       

     

     

     

    Net increase (decrease) in net assets applicable to common shareholders resulting from operations

         44,559,127       (1,219,668 ) 

    Distributions to Common Shareholders

         (5,632,858 )      (11,614,391 ) 
      

     

     

       

     

     

     

    Total increase (decrease)

         38,926,269       (12,834,059 ) 
    Net Assets Applicable to Common Shareholders     

    Beginning of period

         311,650,529       324,484,588  
      

     

     

       

     

     

     

    End of period

       $  350,576,798     $  311,650,529  
      

     

     

       

     

     

     

    See notes to financial statements.

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 29


     

    STATEMENT OF CASH FLOWS

    For the six months ended April 30, 2024 (unaudited)

     

    Cash flows from operating activities     

    Net increase in net assets from operations

         $ 44,559,127  
    Reconciliation of net increase in net assets from operations to net increase in cash from operating activities     

    Purchases of long-term investments

       $  (80,896,453 )   

    Purchases of short-term investments

         (68,695,247 )   

    Proceeds from disposition of long-term investments

         70,140,699    

    Proceeds from disposition of short-term investments

         77,668,267    

    Net realized loss on investment transactions

         5,337,868    

    Net change in unrealized appreciation (depreciation) on investment transactions

         (44,190,914 )   

    Net accretion of bond discount and amortization of bond premium

         683,837    

    Increase in receivable for investments sold

         (930,000 )   

    Decrease in interest receivable

         65,613    

    Decrease in affiliated dividends receivable

         29,384    

    Decrease in receivable due from Adviser

         824    

    Increase in payable for investments purchased

         2,080,460    

    Increase in advisory fee payable

         14,786    

    Decrease in interest expense payable

         (18,840 )   

    Decrease in Directors’ fee payable

         (1,047 )   

    Decrease in accrued expenses

         (252,908 )   
      

     

     

       

    Total adjustments

            (38,963,671 ) 
        

     

     

     

    Net cash provided by (used in) operating activities

           5,595,456  
    Cash flows from financing activities     

    Decrease in deferred offering costs

         37,343    

    Cash dividends paid

         (5,632,858 )   
      

     

     

       

    Net cash provided by (used in) financing activities

           (5,595,515 ) 
        

     

     

     

    Net decrease in cash

           (59 ) 

    Cash at beginning of period

           102  
        

     

     

     

    Cash at end of period

         $ 43  
        

     

     

     
    Supplemental disclosure of cash flow information     

    Interest expense paid during the period

       $ 5,381,345    

    In accordance with U.S. GAAP, the Fund has included a Statement of Cash Flows as a result of its substantial investments in Variable Rate MuniFund Term Preferred Shares throughout the period.

    See notes to financial statements.

     

    30 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    NOTES TO FINANCIAL STATEMENTS

    April 30, 2024 (unaudited)

     

    NOTE A

    Significant Accounting Policies

    AllianceBernstein National Municipal Income Fund, Inc. (the “Fund”) is organized as a Maryland corporation and is registered under the Investment Company Act of 1940 (the “1940 Act”) as a diversified, closed-end management investment company. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

    1. Security Valuation

    Portfolio securities are valued at market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Fund’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

    In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 31


     

    NOTES TO FINANCIAL STATEMENTS (continued)

     

    or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

    Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

    2. Fair Value Measurements

    In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund 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

     

    32 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    NOTES TO FINANCIAL STATEMENTS (continued)

     

    or liability (including those valued based on their market values as described in Note A.1 above). 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 Fund. Unobservable inputs reflect the Fund’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 Fund’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 are 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.

    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.

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 33


     

    NOTES TO FINANCIAL STATEMENTS (continued)

     

    The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of April 30, 2024:

     

         Level 1     Level 2     Level 3     Total  

    Assets:

            

    Long-Term Municipal Bonds

       $ – 0  –    $ 568,829,921     $ – 0  –    $ 568,829,921  

    Commercial Mortgage-Backed Securities

         – 0  –      7,142,099       – 0  –      7,142,099  

    Short-Term Investments

         734,443       – 0  –      – 0  –      734,443  

    Liabilities:

            

    Variable Rate MuniFund Term Preferred Shares(a)

         – 0  –      (232,015,319 )      – 0  –      (232,015,319 ) 
      

     

     

       

     

     

       

     

     

       

     

     

     

    Total Investments in Securities

         734,443       343,956,701       – 0  –      344,691,144  

    Other Financial Instruments(b)

         – 0  –      – 0  –      – 0  –      – 0  – 
      

     

     

       

     

     

       

     

     

       

     

     

     

    Total

       $  734,443     $  343,956,701     $  – 0  –    $  344,691,144  
      

     

     

       

     

     

       

     

     

       

     

     

     

     

    (a)

    The Fund may hold liabilities in which the fair value approximates the carrying amount for financial statement purposes.

     

    (b)

    Other financial instruments include reverse repurchase agreements and 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.

    3. Taxes

    It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required.

    In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

    4. Investment Income and Investment Transactions

    Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes original issue and market discounts as adjustments to interest income. The Fund accounts for distributions

     

    34 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    NOTES TO FINANCIAL STATEMENTS (continued)

     

    received from real estate investment trust (“REIT”) investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

    5. Dividends and Distributions

    Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

    6. Cash and Short-Term Investments

    Cash and short-term investments include cash on hand and short-term investments with maturities of less than one year when purchased.

    NOTE B

    Advisory Fee and Other Transactions with Affiliates

    Under the terms of an investment advisory agreement, the Fund pays the Adviser an advisory fee at the annual rate of .55% of the Fund’s adjusted average daily net assets. Such advisory fee, which is calculated on the basis of the assets attributable to the Fund’s common and preferred shareholders, is accrued daily and paid monthly. In computing daily net assets for purposes of determining the advisory fee payable, the Fund calculates daily the value of the total assets of the Fund, minus the value of the total liabilities of the Fund, except that the aggregate liquidation preference of Variable Rate MuniFund Term Preferred Shares (the“VMTPS”), which is a liability for financial reporting purposes, is not deducted.

    Under the terms of the shareholder inquiry agency agreement with Alliance-Bernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, the Fund reimburses ABIS for costs relating to servicing phone inquiries on behalf of the Fund. During the six months ended April 30, 2024, there was no reimbursement paid to ABIS.

    The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser had contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2023. Effective September 1, 2023, the Adviser has contractually agreed to waive .05% of the advisory fee of Government Money Market Portfolio (resulting in a net

     

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    NOTES TO FINANCIAL STATEMENTS (continued)

     

    advisory fee of .15%) until August 31, 2024. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the six months ended April 30, 2024, such waiver amounted to $4,529.

    A summary of the Fund’s transactions in AB mutual funds for the six months ended April 30, 2024 is as follows:

     

    Fund

       Market Value
    10/31/23
    (000)
         Purchases
    at Cost
    (000)
         Sales
    Proceeds
    (000)
         Market Value
    4/30/24
    (000)
         Dividend
    Income
    (000)
     

    Government Money Market Portfolio

       $  9,713      $  57,895      $  66,874      $  734      $  158  

    NOTE C

    Investment Transactions

    Purchases and sales of investment securities (excluding short-term investments) for the six months ended April 30, 2024 were as follows:

     

         Purchases     Sales  

    Investment securities (excluding U.S. government securities)

       $  80,897,191     $  70,049,513  

    U.S. government securities

         – 0  –      – 0  – 

    The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

     

    Gross unrealized appreciation

       $ 7,435,727  

    Gross unrealized depreciation

          (16,536,198 ) 
      

     

     

     

    Net unrealized depreciation

       $ (9,100,471 ) 
      

     

     

     

    1. Derivative Financial Instruments

    The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

    The Fund did not engage in derivatives transactions for the six months ended April 30, 2024.

     

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    NOTES TO FINANCIAL STATEMENTS (continued)

     

    NOTE D

    Common Stock

    There are 28,744,936 shares of common stock outstanding at April 30, 2024. During the six months ended April 30, 2024 and the year ended October 31, 2023, the Fund did not issue any shares in connection with the Fund’s dividend reinvestment plan.

    NOTE E

    Variable Rate MuniFund Term Preferred Shares

    During the year ended October 31, 2019, the Fund completed private offerings of 2019 VMTPS and 2018 VMTPS, each having a liquidation preference of $25,000 per share, on August 28, 2019 and December 19, 2018, respectively. The Fund issued and sold 5,754 2019 VMTPS and 3,531 2018 VMTPS in its offerings. The 2019 VMTPS and 2018 VMTPS rank pari passu with each other but are subject to a mandatory redemption by the Fund in August 2049 and December 2048, respectively.

    The VMTPS generally do not trade, and market quotations are generally not available. The VMTPS paid a variable dividend rate tied to a SIFMA Municipal Swap index, plus an additional fixed “spread” amount of 0.90% for 2018 VMTPS and 0.98% for 2019 VMTPS, as established at the time of issuance. Effective April 22, 2021, the spread was 1.05% for the 2018 VMTPS. Effective September 14, 2023, the base rate is 80% of the Secured Overnight Financing Rate (“SOFR”) plus a spread of .55% for the 2018 VMTPS. Effective December 9, 2021, the spread is 0.91% for the 2019 VMTPS. As of April 30, 2024, the dividend rates for the 2018 VMTPS and 2019 VMTPS were 4.81% and 4.68%, respectively. In the Fund’s statement of assets and liabilities, the aggregate liquidation preference of the VMTPS is shown as a liability in accordance with U.S. GAAP because the VMTPS have a stated mandatory redemption date. For the six months ended April 30, 2024, the average amount of the VMTPS outstanding and the daily weighted average dividend rate were $232,125,000 and 4.59%, respectively.

    Dividends on the VMTPS (which are treated as interest payments for financial reporting purposes) are accrued daily and paid monthly. Unpaid dividends on the VMTPS are recorded as “Interest expense payable” on the statement of assets and liabilities. Dividends accrued on the VMTPS are recorded as a component of “Interest expense, fees and amortization of offering costs” on the statement of operations.

    Costs incurred by the Fund in connection with its offering of the VMTPS were recorded as a deferred charge, and are amortized over the first three years of the life of the shares and the amortization is included within “Interest expense, fees and amortization of offering costs” on the statement

     

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    NOTES TO FINANCIAL STATEMENTS (continued)

     

    of operations. The debt issuance costs related to the liability represented by the VMTPS under U.S. GAAP are presented as a direct deduction from the liability rather than as an asset on the statement of assets and liabilities, consistent with debt discounts. The Fund included deferred offering costs in “Variable Rate MuniFund Term Preferred Shares, at liquidation value (net of unamortized deferred offering cost)” on the statement of assets and liabilities. The VMTPS are treated as equity for tax purposes. During the six months ended April 30, 2024, no additional costs were incurred and capitalized by the Fund.

    The preferred shareholders, i.e., the holders of both the 2019 VMTPS and 2018 VMTPS, voting together as a separate class, have the right to elect at least two directors at all times and to elect a majority of the directors in the event two years’ dividends on the preferred shares are unpaid. In each case, the remaining directors will be elected by the common shareholders and preferred shareholders voting together as a single class. The preferred shareholders vote as a separate class on certain other matters as required under the Fund’s Charter, the Investment Company Act of 1940 and Maryland law.

    NOTE F

    Distributions to Common Shareholders

    The tax character of distributions to be paid for the year ending October 31, 2024 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended October 31, 2023 and October 31, 2022 were as follows:

     

         2023      2022  

    Distributions paid from:

         

    Ordinary income

       $ 538,524      $ 15,238  
      

     

     

        

     

     

     

    Total taxable distributions paid

       $ 538,524      $ 15,238  
      

     

     

        

     

     

     

    Tax-exempt income

         11,075,867        16,651,938  
      

     

     

        

     

     

     

    Total distributions paid

       $  11,614,391      $  16,667,176  
      

     

     

        

     

     

     

    As of October 31, 2023, the components of accumulated earnings (deficit) on a tax basis were as follows:

     

    Undistributed tax-exempt income

       $ 529,291  

    Accumulated capital and other losses

         (37,815,303 )(a) 

    Unrealized appreciation (depreciation)

          (53,291,385 ) 
      

     

     

     

    Total accumulated earnings (deficit)

       $ (90,577,397 )(b) 
      

     

     

     

     

    (a)

    As of October 31, 2023, the Fund had a net capital loss carryforward of $37,815,303.

     

    (b)

    The difference between book-basis and tax-basis components of accumulated earnings/(deficit) is attributable primarily to dividends payable.

     

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    NOTES TO FINANCIAL STATEMENTS (continued)

     

    For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2023, the Fund had a net short-term capital loss carryforward of $11,029,205 and a net long-term capital loss carryforward of $26,786,098 which may be carried forward for an indefinite period.

    NOTE G

    Risks Involved in Investing in the Fund

    Among the risks of investing in the Fund are changes in the general level of interest rates or changes in bond credit quality ratings. Changes in interest rates have a greater effect on bonds with longer maturities than on those with shorter maturities. Please note, as interest rates rise, existing bond prices fall and can cause the value of your investment in the Fund to decline. While the Fund invests principally in bonds and other fixed-income securities, in order to achieve its investment objectives, the Fund may at times use certain types of investment derivatives, such as options, futures, forwards and swaps. These instruments involve risks different from, and in certain cases, greater than, the risks presented by more traditional investments. At the discretion of the Fund’s Adviser, the Fund may invest up to 25% of its net assets in municipal bonds that are rated below investment-grade (i.e., “junk bonds”). These securities involve greater volatility and risk than higher-quality fixed-income securities.

    Market Risk—The market value of a security may move up or down, sometimes rapidly and unpredictably. These fluctuations may cause a security to be worth less than the price originally paid for it, or less than it was worth at an earlier time. Market risk may affect a single issuer, industry, sector of the economy or the market as a whole. Global economies and financial markets are increasingly interconnected, which increases the probabilities that conditions in one country or region might adversely impact issuers in a different country or region. Conditions affecting the general economy, including political, social, or economic instability at the local, regional, or global level may also affect the market value of a security. Health crises, such as pandemic and epidemic diseases, as well as other incidents that interrupt the expected course of events, such as natural disasters, including fires, earthquakes and flooding, war or civil disturbance, acts of terrorism, power outages and other unforeseeable and external events, and the public response to or fear of such diseases or events, have had, and may in the future have, an adverse effect on the Fund’s investments and net asset value and can lead to increased market volatility. For example, the diseases or events themselves or any preventative or protective actions that governments may take in respect of such diseases or events may result in periods of business disruption,

     

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    NOTES TO FINANCIAL STATEMENTS (continued)

     

    inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for issuers of securities held by the Fund. The occurrence and pendency of such diseases or events could adversely affect the economies and financial markets either in specific countries or worldwide.

    Municipal Market Risk—This is the risk that special factors may adversely affect the value of the municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state’s municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. The Fund’s investment 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 project’s ability to make payments of principal and interest on these securities.

    Financing and Related Transactions; Leverage and Other Risks—The Fund utilizes leverage to seek to enhance the yield and NAV attributable to its common stock. These objectives may not be achieved in all interest-rate environments. Leverage creates certain risks for holders of common stock, including the likelihood of greater volatility of the NAV and market price of the common stock. If income from the securities purchased from the funds made available by leverage is not sufficient to cover the cost of leverage, the Fund’s return will be less than if leverage had not been used.

    As a result, the amounts available for distribution to common stockholders as dividends and other distributions will be reduced. During periods of rising short-term interest rates, the interest paid on the preferred shares or floaters in TOB transactions would increase, which may adversely affect the Fund’s income and distribution to common stockholders. A decline in distributions would adversely affect the Fund’s yield and possibly the market value of its shares. If rising short-term rates coincide with a period of rising long-term rates, the value of the long-term municipal bonds purchased with the proceeds of leverage would decline, adversely affecting the NAV attributable to the Fund’s common stock and possibly the market value of the shares.

     

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    NOTES TO FINANCIAL STATEMENTS (continued)

     

    The Fund’s outstanding Variable Rate MuniFund Term Preferred Shares result in leverage. The Fund may also use other types of financial leverage, including TOB transactions, either in combination with, or in lieu of, the preferred shares. In a TOB transaction, the Fund may transfer a highly rated fixed-rate municipal security into a special purpose entity (typically, a trust). The Fund receives cash and a residual interest security (sometimes referred to as an “inverse floater”) issued by the trust in return. The trust simultaneously issues securities, which pay an interest rate that is reset each week based on an index of high-grade short-term [seven-day] demand notes. These securities, sometimes referred to as “floaters”, are bought by third parties, including tax-exempt money market funds, and can be tendered by these holders to a liquidity provider at par, unless certain events occur. The Fund continues to earn all the interest from the transferred bond less the amount of interest paid on the floaters and the expenses of the trust, which include payments to the trustee and the liquidity provider and organizational costs. The Fund also uses the cash received from the transaction for investment purposes or to retire other forms of leverage. Under certain circumstances, the trust may be terminated and collapsed, either by the Fund or upon the occurrence of certain events, such as a downgrade in the credit quality of the underlying bond, or in the event holders of the floaters tender their securities to the liquidity provider. See Note H to the financial statements for more information about TOB transactions.

    The use of derivative instruments by the Fund, such as forwards, futures, options and swaps, may also result in a form of leverage.

    Because the advisory fees received by the Adviser are based on the adjusted net assets of the Fund (including assets supported by the proceeds of the Fund’s outstanding preferred shares), the Adviser has a financial incentive for the Fund to keep its preferred shares outstanding, which may create a conflict of interest between the Adviser and the common shareholders of the Fund.

    Tax Risk—There is no guarantee that the income on the Fund’s municipal securities will be exempt from regular federal income and state income taxes. Unfavorable legislation, adverse interpretations by federal or state authorities, litigation or noncompliant conduct by the issuer of a municipal security could affect the tax-exempt status of municipal securities. If the Internal Revenue Service or a state authority determines that an issuer of a municipal security has not complied with applicable requirements, interest from the security could become subject to regular federal income tax and/or state personal income tax, possibly retroactively to the date the security was issued, the value of the security could decline significantly, and a portion of the distributions to Fund shareholders could be recharacterized as taxable. Recent federal legislation included reductions in tax rates for

     

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    NOTES TO FINANCIAL STATEMENTS (continued)

     

    individuals, with relatively larger reductions in tax rates for corporations. These tax rate reductions may reduce the demand for municipal bonds which could reduce the value of municipal bonds held by the Fund.

    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 and accrued interest. 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.

    Interest-Rate Risk—Changes in interest rates will affect the value of the Fund’s investments in fixed-income securities. When interest rates rise, the value of existing 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

    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 Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

    Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

     

    42 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

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    NOTES TO FINANCIAL STATEMENTS (continued)

     

    Illiquid Investments Risk—Illiquid investments risk exists when particular investments are or become difficult to purchase or sell, possibly preventing the Fund from selling out of these securities at an advantageous price. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be magnified in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk than most other types of investments. The Fund is subject to illiquid investments risk because the market for municipal securities is generally smaller than many other markets, which may make municipal securities more difficult to trade than other types of securities. Illiquid securities may also be difficult to value.

    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 the 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.

    LIBOR Replacement Risk—The Fund may be exposed to debt securities, derivatives or other financial instruments that recently transitioned from the London Interbank Offered Rate (LIBOR) as a benchmark or reference rate for various interest rate calculations. The use of LIBOR was phased out in June 2023 and transitioned to the Secured Overnight Financing Rate (SOFR). SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market. There can be no assurance that instruments linked to SOFR will have the same volume or liquidity as did the market for LIBOR-linked financial instruments prior to LIBOR’s discontinuance or unavailability.

    Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

    Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative

     

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    NOTES TO FINANCIAL STATEMENTS (continued)

     

    models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

    NOTE H

    Recent Accounting Pronouncements

    In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848)—Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.

    NOTE I

    Subsequent Events

    On June 6, 2024. the Fund priced and placed $100 million in Variable Rate Demand Preferred Shares (“2024 VRDPS”) pursuant to an offering exempt from registration under the Securities Act of 1933. The Fund issued $100 million in aggregate liquidation preference of 2024 VRDPS. The Fund used the proceeds of the 2024 VRDPS issuance, in conjunction with proceeds from the creation of tender option bond (“TOB”) trusts by the Fund, to simultaneously redeem all of its 2019 Variable Rate MuniFund Term Preferred Shares (“2019 VMTPS”) at a redemption price of $25,000 per share, plus accumulated but unpaid dividends. The aggregate amount paid by the Fund in connection with the redemption of the 2019 VMTPS was $143.85 million. The issuance permitted the Fund to replace a substantial portion of the leverage previously obtained through the 2019 VMTPS with the 2024 VRDPS.

    Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no other material events that would require disclosure in the Fund’s financial statements through this date.

     

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    FINANCIAL HIGHLIGHTS

    Selected Data For A Share Of Common Stock Outstanding Throughout Each Period

     

       

    Six Months
    Ended
    April 30,
    2024

    (unaudited)

        Year Ended October 31,  
        2023     2022     2021     2020     2019  
     

     

     

     

    Net asset value, beginning of period

        $ 10.84       $ 11.29       $ 15.26       $ 14.94       $ 15.23       $ 13.86  
     

     

     

     

    Income From Investment Operations

               

    Net investment income(a)(b)

        .20       .40       .57       .63       .58       .53  

    Net realized and unrealized gain (loss) on investment transactions

        1.36       (.45 )      (3.96 )      .33       (.28 )      1.36  

    Dividends to auction preferred shareholders from net investment income (common stock equivalent basis)

        – 0  –      – 0  –      – 0  –      – 0  –      – 0  –      (.01 ) 
     

     

     

     

    Net increase (decrease) in net asset value from operations

        1.56       (.05 )      (3.39 )      .96       .30       1.88  
     

     

     

     

    Less: Dividends and Distributions to Common Shareholders from

               

    Net investment income

        (.20 )      (.40 )      (.58 )      (.64 )      (.59 )      (.53 ) 

    Return of capital

        – 0  –      – 0  –      – 0  –      – 0  –      – 0  –      (.02 ) 
     

     

     

     

    Total dividends and distributions

        (.20 )      (.40 )      (.58 )      (.64 )      (.59 )      (.55 ) 
     

     

     

     

    Net increase from tender and repurchase of Auction Preferred Shares

        – 0  –      – 0  –      – 0  –      – 0  –      – 0  –      .04  
     

     

     

     

    Net asset value, end of period

        $ 12.20       $ 10.84       $ 11.29       $ 15.26       $ 14.94       $ 15.23  
     

     

     

     

    Market value, end of period

        $ 10.49       $ 9.07       $ 10.22       $ 14.66       $ 13.58       $ 13.59  
     

     

     

     

    Discount, end of period

        (14.02 )%      (16.33 )%      (9.48 )%      (3.93 )%      (9.10 )%      (10.77 )% 

    Total Return

               

    Total investment return based on:(c)

               

    Market value

        17.79 %      (7.75 )%      (26.92 )%      12.79 %      4.39 %      18.44 % 

    Net asset value(d)

        14.63 %      (.20 )%      (22.45 )%      6.71 %      2.48 %      14.63 % 

    Ratios/Supplemental Data

               

    Net assets applicable to common shareholders, end of period (000’s omitted)

        $350,577       $311,651       $324,485       $438,683       $429,462       $437,838  

    Auction Preferred Shares:

               

    Liquidation value ($25,000 per share) (000’s omitted)

        N/A       N/A       N/A       N/A       N/A       N/A  

    Asset coverage per share

        N/A       N/A       N/A       N/A       N/A       N/A  

    Variable Rate MuniFund Term Preferred Shares:

               

    Liquidation value ($25,000 per share) (000’s omitted)

        $232,125       $232,125       $232,125       $232,125       $232,125       $232,125  

    Asset coverage per share

        $62,757       $58,565       $59,947       $72,246       $71,253       $72,155  

    Ratio to average net assets applicable to common shareholders of:

               

    Expenses, net of waivers/reimbursements(e)(f)

        4.07 %^      3.80 %      2.15 %      1.56 %      2.01 %      2.56 % 

    Expenses, before waivers/reimbursements(e)(f)

        4.07 %^      3.80 %      2.15 %      1.56 %      2.01 %      2.56 % 

    Net investment income, before Auction Preferred Shares dividends(b)(e)

        3.22 %^      3.28 %      4.18 %      4.08 %      3.90 %      3.63 % 

    Auction Preferred Shares dividends

        0 %      0 %      0 %      0 %      0 %      .08 % 

    Net investment income, net of Auction Preferred Shares dividends(b)

        3.22 %^      3.28 %      4.18 %      4.08 %      3.90 %      3.55 % 

    Portfolio turnover rate

        12 %      55 %      18 %      5 %      6 %      14 % 

    Asset coverage ratio

        251 %      234 %      240 %      289 %      285 %      289 % 

    See footnote summary on page 46.

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 45


     

    FINANCIAL HIGHLIGHTS (continued)

    Selected Data For A Share Of Common Stock Outstanding Throughout Each Period

     

    (a)

    Based on average shares outstanding.

     

    (b)

    Net of fees waived by the Adviser.

     

    (c)

    Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Generally, total investment return based on net asset value will be higher than total investment return based on market value in periods where there is an increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total investment return based on net asset value will be lower than total investment return based on market value in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods. Total investment return calculated for a period of less than one year is not annualized.

     

    (d)

    The total return based on net asset value reflects the impact of the tender and repurchase by the Fund of a portion of its Auction Preferred Shares at 97% of the per share liquidation preference for the year ended October 31, 2019. Absent this transaction, the total return based on net asset values would have been 14.34% for the years ended October 31, 2019.

     

    (e)

    These expense and net investment income ratios do not reflect the effect of dividend payments to preferred shareholders.

     

    (f)

    The expense ratios presented below exclude interest expense:

     

        Six Months
    Ended
    April 30,
    2024
        Year Ended October 31,  
        (unaudited)     2023     2022     2021     2020     2019  
     

     

     

     

    Net of waivers/reimbursements

        1.03 %^      1.03 %      .99 %      .94 %      .96 %      .98 % 

    Before waivers/reimbursements

        1.03 %^      1.04 %      .99 %      .94 %      .96 %      .98 % 

     

    ^

    Annualized.

    See notes to financial statements.

     

    46 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    ADDITIONAL INFORMATION

    (unaudited)

     

    Shareholders whose shares are registered in their own names can elect to participate in the Dividend Reinvestment Plan (the “Plan”), pursuant to which dividends and capital gain distributions to shareholders will be paid in or reinvested in additional shares of the Fund (the “Dividend Shares”). Computershare Trust Company NA, (the “Agent”) will act as agent for participants under the Plan. Shareholders whose shares are held in the name of broker or nominee should contact such broker or nominee to determine whether or how they may participate in the Plan.

    If the Board declares an income distribution or determines to make a capital gain distribution payable either in shares or in cash, non-participants in the Plan will receive cash and participants in the Plan will receive the equivalent in shares of Common Stock of the Fund valued as follows:

     

      (i)

    If the shares of Common Stock are trading at net asset value or at a premium above net asset value at the time of valuation, the Fund will issue new shares at the greater of net asset value or 95% of the then current market price.

     

      (ii)

    If the shares of Common Stock are trading at a discount from net asset value at the time of valuation, the Agent will receive the dividend or distribution in cash and apply it to the purchase of the Fund’s shares of Common Stock in the open market on the New York Stock Exchange or elsewhere, for the participants’ accounts. Such purchases will be made on or shortly after the payment date for such dividend or distribution and in no event more than 30 days after such date except where temporary curtailment or suspension of purchase is necessary to comply with Federal securities laws. If, before the Agent has completed its purchases, the market price exceeds the net asset value of a share of Common Stock, the average purchase price per share paid by the Agent may exceed the net asset value of the Fund’s shares of Common Stock, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund.

    The Agent will maintain all shareholders’ accounts in the Plan and furnish written confirmation of all transactions in the account, including information needed by shareholders for tax records. Shares in the account of each Plan participant will be held by the Agent in non-certificate form in the name of the participant, and each shareholder’s proxy will include those shares purchased or received pursuant to the Plan.

    There will be no charges with respect to shares issued directly by the Fund to satisfy the dividend reinvestment requirements. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Agent’s open market purchases of shares.

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 47


     

    ADDITIONAL INFORMATION (continued)

     

    The automatic reinvestment of dividends and distributions will not relieve participants of any income taxes that may be payable (or required to be withheld) on dividends and distributions.

    Experience under the Plan may indicate that changes are desirable. Accordingly, the Fund reserves the right to amend or terminate the Plan as applied to any dividend or distribution paid subsequent to written notice of the change sent to participants in the Plan at least 90 days before the record date for such dividend or distribution. The Plan may also be amended or terminated by the Agent on at least 90 days’ written notice to participants in the Plan. All correspondence concerning the Plan should be directed to the Agent at Computershare Trust Company N.A., P.O. Box 30170, College Station, TX 77842-3170.

     

    48 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND

      abfunds.com


     

    BOARD OF DIRECTORS

     

    Garry Moody(1),

    Chairman

    Jorge A. Bermudez(1)

    Michael J. Downey(1)*

    Onur Erzan**, President and Chief Executive Officer

      

    Nancy P. Jacklin(1)*

    Jeanette W. Loeb(1)

    Carol C. McMullen(1)

    Marshall C. Turner, Jr.(1)*

    Emilie D. Wrapp, Advisory Board Member

    OFFICERS

    Daryl Clements(2), Vice President

    Matthew J. Norton(2), Vice President

    Andrew D. Potter(2), Vice President

    Nancy E. Hay, Secretary

    Michael B. Reyes, Senior Vice President

      

    Stephen M. Woetzel, Treasurer and Chief Financial Officer

    Phyllis J. Clarke, Controller

    Jennifer Friedland, Chief Compliance Officer

     

    Custodian and Accounting Agent

    State Street Bank and Trust Company

    One Congress Street, Suite 1 Boston, MA 02114

     

    Legal Counsel

    Seward & Kissel LLP

    One Battery Park Plaza

    New York, NY 10004

      

    Independent Registered Public

    Accounting Firm

    Ernst & Young LLP

    One Manhattan West

    New York, NY 10001

     

    Dividend Paying Agent,

    Transfer Agent and Registrar

    Computershare Trust Company, N.A.

    P.O. Box 43006

    Providence, RI 02940

     

    1

    Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

     

    2

    The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s Municipal Bond Investment Team. The investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio are Messrs. Clements, Potter and Norton.

    Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Fund may purchase at market prices from time-to-time shares of its Common Stock in the open market.

    This report, including the financial statements therein, is transmitted to the shareholders of AllianceBernstein National Municipal Income Fund for their information. This is not a prospectus, circular or representation intended for use in the purchase of shares of the Fund or any securities mentioned in the report.

    Annual Certifications—As required, on April 23, 2024, the Fund submitted to the New York Stock Exchange (“NYSE”) the annual certification of the Fund’s Chief Executive Officer certifying that he is not aware of any violation of the NYSE’s Corporate Governance listing standards. The Fund also has included the certifications of the Fund’s Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act of 2002 as exhibits to the Fund’s Form N-CSR filed with the Securities and Exchange Commission for the period.

     

    *

    Messrs. Downey and Turner and Ms. Jacklin are expected to retire effective on December 31, 2024.

     

    **

    Mr. Erzan is expected to resign as a Director effective December 31, 2024, but is expected to continue to serve as President and Chief Executive Officer of the Fund.

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 49


    Information Regarding the Review and Approval of the Fund’s Advisory Agreement

    The disinterested directors (the “directors”) of AllianceBernstein National Municipal Income Fund, Inc. (the “Fund”) unanimously approved the continuance of the Fund’s Advisory Agreement with the Adviser at a meeting held in-person on August 1-2, 2023 (the “Meeting”).

    Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Vice President of the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

    The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the money market fund advised by the Adviser in which the Fund invests a portion of its assets.

    The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business

     

    50 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


    judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

    Nature, Extent and Quality of Services Provided

    The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. The directors noted that historically, including in the most recent fiscal year of the Fund, the Adviser has not requested such reimbursements. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

    Costs of Services Provided and Profitability

    The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2021 and 2022 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiary that provides shareholder services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

    Fall-Out Benefits

    The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 51


    by the Adviser in which the Fund invests, including, but not limited to, benefits relating to shareholder servicing fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

    Investment Results

    In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

    At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the Fund’s performance against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing the Fund’s performance against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended May 31, 2023 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

    Advisory Fees and Other Expenses

    The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual advisory fee rate with a peer group median and noted that it was lower than the median.

    The directors noted that the Fund’s Advisory Agreement provides that fees are computed based on average daily net assets (i.e., including assets supported by the Fund’s preferred stock), which the directors considered appropriate because the Adviser is responsible for investing the assets supported by the preferred stock.

    The directors also compared the Fund’s contractual advisory fee rate with the fee rates charged by the Adviser for advising several open-end funds that invest in municipal securities and noted historical differences in their fee structures.

    The Adviser informed the directors that there were no institutional products managed by the Adviser that utilize investment strategies similar to those of the Fund.

     

    52 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


    In connection with their consideration of the Fund’s advisory fee, the directors also considered the total expense ratio of the Fund (including assets supported by the Fund’s preferred stock) in comparison to the medians for a peer group and a peer universe selected by the 15(c) service provider. The expense ratio of the Fund was based on the Fund’s latest fiscal year. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. The directors noted that the Fund’s expense ratio was equal to a median. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

    Economies of Scale

    The advisory fee schedule for the Fund does not contain breakpoints that reduce the fee rates on assets above specified levels. The directors considered that the Fund is a closed-end fixed-income fund and was not expected to have meaningful asset growth (absent a rights offering or an acquisition). In such circumstances, the directors did not view the potential for realization of economies of scale as the Fund’s assets grow to be a material factor in their deliberations. They noted that, if the Fund’s net assets were to increase materially, they would review whether potential economies of scale were being realized.

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 53


    This page is not part of the Shareholder Report or the Financial Statements.

     

     

    AB FAMILY OF FUNDS

     

    US EQUITY

    CORE

    Core Opportunities Fund

    Select US Equity Portfolio

    Sustainable US Thematic Portfolio

    GROWTH

    Concentrated Growth Fund

    Discovery Growth Fund

    Growth Fund

    Large Cap Growth Fund

    Small Cap Growth Portfolio

    VALUE

    Discovery Value Fund

    Equity Income Fund

    Mid Cap Value Portfolio

    Relative Value Fund

    Small Cap Value Portfolio

    Value Fund

    INTERNATIONAL/GLOBAL EQUITY

    CORE

    Global Core Equity Portfolio

    International Low Volatility Equity Portfolio1

    Sustainable Global Thematic Fund

    Sustainable International Thematic Fund

    Tax-Managed Wealth Appreciation Strategy

    Wealth Appreciation Strategy

    GROWTH

    Concentrated International Growth Portfolio

    VALUE

    All China Equity Portfolio

    International Value Fund

    FIXED INCOME

    MUNICIPAL

    High Income Municipal Portfolio

    Intermediate California Municipal Portfolio

    Intermediate Diversified Municipal Portfolio

    Intermediate New York Municipal Portfolio

    Municipal Bond Inflation Strategy

    Tax-Aware Fixed Income Opportunities Portfolio

    National Portfolio

    Arizona Portfolio

    California Portfolio

    Massachusetts Portfolio

    Minnesota Portfolio

    New Jersey Portfolio

    New York Portfolio

    Ohio Portfolio

    Pennsylvania Portfolio

    Virginia Portfolio

    TAXABLE

    Bond Inflation Strategy

    Global Bond Fund

    High Income Fund

    Income Fund

    Intermediate Duration Portfolio

    Short Duration High Yield Portfolio1

    Short Duration Income Portfolio

    Short Duration Portfolio

    Sustainable Thematic Credit Portfolio

    Total Return Bond Portfolio

    ALTERNATIVES

    All Market Real Return Portfolio

    Global Real Estate Investment Fund

    Select US Long/Short Portfolio

    MULTI-ASSET

    All Market Total Return Portfolio

    Emerging Markets Multi-Asset Portfolio

    Global Risk Allocation Fund

    Sustainable Thematic Balanced Portfolio

    CLOSED-END FUNDS

    AllianceBernstein Global High Income Fund

    AllianceBernstein National Municipal Income Fund

    EXCHANGE-TRADED FUNDS

    Conservative Buffer ETF

    Core Plus Bond ETF

    Corporate Bond ETF

    Disruptors ETF

    High Yield ETF

    Tax-Aware Intermediate Municipal ETF

    Tax-Aware Long Municipal ETF

    Tax-Aware Short Duration Municipal ETF

    Ultra Short Income ETF

    US High Dividend ETF

    US Large Cap Strategic Equities ETF

    US Low Volatility Equity ETF

     

    We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

    Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

     

    1

    Prior to July 5, 2023, International Low Volatility Equity Portfolio was named International Strategic Core Portfolio and Short Duration High Yield Portfolio was named Limited Duration High Income Portfolio.

     

    54 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


     

    NOTES

     

     

    abfunds.com  

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND | 55


     

    NOTES

     

     

    56 | ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME  FUND

      abfunds.com


    Privacy Notice

    AllianceBernstein and its affiliates (collectively referred to as “AllianceBernstein”, “we”, “our”, and similar pronouns) understand the importance of maintaining the confidentiality and security of our clients’ nonpublic personal information. Nonpublic personal information is personally identifiable financial information about our clients who are natural persons. To provide financial products and services to our clients, we collect nonpublic personal information from a variety of sources, including: (1) information we receive from clients, such as through applications or other forms, which can include a client’s name, address, phone number, social security number, assets, income and other household information, (2) information about client transactions with us, our affiliates and non-affiliated third parties, which can include account balances and transactions history, and (3) information from visitors to our websites provided through online forms, site visitorship data and online information-collecting devices known as “cookies.”

    We may disclose all of the nonpublic personal information that we collect about our current and former clients, as described above, to non-affiliated third parties to manage our business and as otherwise required or permitted by law, including those that perform transaction processing or servicing functions, marketing services providers that provide marketing services on our behalf pursuant to a joint marketing agreement, and professional services firms that provide knowledge-based services such as accountants, consultants, lawyers and auditors to help manage client accounts. We require all the third-party providers to adhere to our privacy policy or a functional equivalent.

    We may also disclose the nonpublic personal information that we collect about current and former clients, as described above, to our affiliated investment, brokerage, service and insurance companies for the purpose of marketing their products or services to clients under circumstances that are permitted by law, such as if our affiliate has its own relationship with you. We have policies and procedures to ensure that certain conditions are met before an AllianceBernstein affiliated company may use information obtained from another affiliate to solicit clients for marketing purposes.

    We will also use nonpublic personal information about our clients for our own internal analysis, analytics, research and development, and to improve and add to our client offerings.

    We have policies and procedures designed to safeguard the confidentiality and security of nonpublic personal information about our clients that include restricting access to nonpublic personal information to personnel that have been screened and undergone security and privacy training; to personnel who need it to perform their work functions such as our operations, customer service, account management, finance, quality, vendor management and compliance teams as required to provide services, communicate with you and fulfill our legal obligations.

    We employ reasonably designed physical, electronic and procedural safeguards to secure and protect client nonpublic personal information.

    If you are in the European Economic Area (“EEA”) or Switzerland, we will comply with applicable legal requirements providing adequate protection for the transfer of personal information to recipients in countries outside of the EEA and Switzerland.

    For more information, our Privacy Policy statement can be viewed here: https://www.alliancebernstein.com/abcom/Privacy_Terms/PrivacyPolicy.htm.


    LOGO

    ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND

    1345 Avenue of the Americas

    New York, NY 10105

    800 221 5672

     

    ABNMIF-0152-0424     LOGO


    ITEM 2.

    CODE OF ETHICS.

    Not applicable when filing a semi-annual report to shareholders.

     

    ITEM 3.

    AUDIT COMMITTEE FINANCIAL EXPERT.

    Not applicable when filing a semi-annual report to shareholders.

     

    ITEM 4.

    PRINCIPAL ACCOUNTANT FEES AND SERVICES.

    Not applicable when filing a semi-annual report to shareholders.

     

    ITEM 5.

    AUDIT COMMITTEE OF LISTED REGISTRANTS.

    Not applicable when filing a semi-annual report to shareholders.

     

    ITEM 6.

    INVESTMENTS.

    Please see Schedule of Investments contained in the Report to Shareholders included under Item 1 of this Form N-CSR.

     

    ITEM 7.

    DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

    Not applicable when filing a semi-annual report to shareholders.

     

    ITEM 8.

    PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

    Not applicable when filing a semi-annual report to shareholders.

     

    ITEM 9.

    PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

    There have been no purchases of equity securities by the Fund or by affiliated parties for the reporting period.

     

    ITEM 10.

    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

    There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Directors since the Fund last provided disclosure in response to this item.


    ITEM 11.

    CONTROLS AND PROCEDURES.

    (a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

    (b) There were no changes in the registrant’s internal controls over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

     

    ITEM 12.

    DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

    The registrant did not engage in securities lending during its most recent fiscal year.

     

    ITEM 13.

    EXHIBITS.

    The following exhibits are attached to this Form N-CSR:

     

    EXHIBIT NO.

     

    DESCRIPTION OF EXHIBIT

    13(b)(1)   Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    13(b)(2)   Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    13(c)
      Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes —Oxley Act of 2002

     


    SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

    (Registrant): AllianceBernstein National Municipal Income Fund, Inc.

     

    By:   /s/ Onur Erzan
      Onur Erzan
      President

    Date:

      June 26, 2024

    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

     

    By:   /s/ Onur Erzan
      Onur Erzan
      President

    Date:

      June 26, 2024

     

    By:   /s/ Stephen M. Woetzel
      Stephen M. Woetzel
      Treasurer and Chief Financial Officer

    Date:

      June 26, 2024
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    • ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND CONFERENCE CALL

      NEW YORK, Sept. 20, 2024 /PRNewswire/ -- AllianceBernstein National Municipal Income Fund (NYSE:AFB) will hold a conference call at 4:30 p.m. (Eastern Time) on Monday, September 23, 2024. Representatives of the Fund will lead the discussion during the live conference call. Persons interested in listening to the conference call live should dial in using the conference call details provided below: PARTICIPANT INFORMATION: USA + Canada Toll-Free: (800) 715-9871USA/International Toll: +1 (646) 307-1963Canada - Toronto: (647) 932-3411Conference ID: 1665940Please dial in approximately 15 minutes before the scheduled call time using the information provided. A written summary of the call will be a

      9/20/24 4:06:00 PM ET
      $AFB
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    • ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND CONFERENCE CALL

      NEW YORK, Aug. 23, 2024 /PRNewswire/ -- AllianceBernstein National Municipal Income Fund (NYSE:AFB) will hold a conference call at 4:30 p.m. (Eastern Time) on Monday, August 26, 2024.  Representatives of the Fund will lead the discussion during the live conference call. Persons interested in listening to the conference call live should dial in using the conference call details provided below: PARTICIPANT INFORMATION: USA + Canada Toll-Free: (800) 715-9871USA/International Toll: +1 (646) 307-1963Canada - Toronto: (647) 932-3411Conference ID: 1665940Please dial in approximately 15 minutes before the scheduled call time using the information provided. A written summary of the call will be avai

      8/23/24 11:22:00 AM ET
      $AFB
      Trusts Except Educational Religious and Charitable
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    • ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND, INC. ANNOUNCES COMPLETION OF FULL REDEMPTION OF 2019 VARIABLE RATE MUNIFUND TERM PREFERRED SHARES AND ISSUANCE OF NEW VARIABLE RATE DEMAND PREFERRED SHARES AS SUBSTITUTE LEVERAGE

      NEW YORK, June 6, 2024 /PRNewswire/ -- AllianceBernstein National Municipal Income Fund, Inc. ((the ", Fund", , NYSE:AFB), a registered closed-end investment company, announced today that it successfully priced and placed $100 million in Variable Rate Demand Preferred Shares ("2024 VRDPS") pursuant to an offering exempt from registration under the Securities Act of 1933. The Fund has issued $100 million in aggregate liquidation preference of 2024 VRDPS. The Fund used the proceeds of the 2024 VRDPS issuance, in conjunction with proceeds from the creation of tender option bond ("TOB") trusts by the Fund, to simultaneously redeem all of its currently outstanding 2019 Variable Rate MuniFund Term

      6/6/24 4:06:00 PM ET
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    • SEC Form DEFA14A filed by AllianceBernstein National Municipal Income Fund Inc

      DEFA14A - ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND (0001162027) (Filer)

      3/19/25 5:12:06 PM ET
      $AFB
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    • SEC Form DEF 14A filed by AllianceBernstein National Municipal Income Fund Inc

      DEF 14A - ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND (0001162027) (Filer)

      2/21/25 2:01:13 PM ET
      $AFB
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    • SEC Form N-CEN filed by AllianceBernstein National Municipal Income Fund Inc

      N-CEN - ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND (0001162027) (Filer)

      1/13/25 2:57:08 PM ET
      $AFB
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    • AllianceBernstein National Municipal Income Fund, Inc. RELEASES MONTHLY PORTFOLIO UPDATE

      NEW YORK, April 21, 2025 /PRNewswire/ -- AllianceBernstein National Municipal Income Fund, Inc.(NYSE:AFB) (the "Fund") today released its monthly portfolio update as of March 31, 2025. AllianceBernstein National Municipal Income Fund, Inc. Top 10 Fixed-Income Holdings Portfolio % 1) Lamar Consolidated Independent School District Series 2024-2 5.00%, 02/15/53 2.73 % 2) City of New Orleans LA Series 2021-A 5.00%, 12/01/46 2.71 % 3) Greenwood Independent School District Series 2024 4.00%, 02/15/54 2.27 % 4) Melissa Independent School District Series 2024-2 4.25%, 02/01/53 2.14 % 5) Dallas Independent School District Series 2024-2 4.00%, 02/15/54 1.94 % 6) New York Transportation Development Co

      4/21/25 4:06:00 PM ET
      $AFB
      Trusts Except Educational Religious and Charitable
      Finance
    • ALLIANCEBERNSTEIN CLOSED-END FUNDS ANNOUNCE DISTRIBUTION RATES

      NEW YORK, April 21, 2025 /PRNewswire/ -- The AllianceBernstein Closed-End Funds declared the following distributions today: FUND NAME AND DISTRIBUTIONS EX-DATE RECORD DATE PAYMENT DATE AllianceBernstein Global High Income Fund, Inc. (NYSE:AWF) 5/1/2025 5/1/2025 5/16/2025 $0.0655 per share of investment income AllianceBernstein National Municipal Income Fund, Inc. (NYSE:AFB) 5/1/2025 5/1/2025 5/16/2025 $0.03961 per share of investment income The Funds are managed by AllianceBernstein L.P.   View original content:https://www.prnewswire.com/news-releases/alliancebernstein-closed-end-funds-announce-distribution-rates-302433565.html SOURCE AllianceBernstein Closed-End Funds

      4/21/25 4:06:00 PM ET
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      $AWF
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    • /C O R R E C T I O N -- AllianceBernstein National Municipal Income Fund, Inc./

      In the news release, ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND, INC. REPORTS FIRST QUARTER EARNINGS, issued 28-Mar-2025 by AllianceBernstein National Municipal Income Fund, Inc. over PR Newswire, we are advised by the company that the release has been revised. The complete, corrected release follows: ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND, INC. REPORTS FIRST QUARTER EARNINGS NEW YORK, March 28, 2025 /PRNewswire/ -- AllianceBernstein National Municipal Income Fund, Inc. (NYSE:AFB), a registered closed‑end investment company, today announced earnings for the Fund's first fiscal quarter ended January 31, 2025. Total net assets of the Fund* on January 31, 2025 were $357,190,

      3/28/25 4:06:00 PM ET
      $AFB
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    $AFB
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    • SEC Form 3 filed by new insider Chaloff Alex

      3 - ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND (0001162027) (Issuer)

      4/1/25 5:23:37 PM ET
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    • SEC Form 3 filed by new insider Holland Jeffrey R

      3 - ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND (0001162027) (Issuer)

      1/6/25 1:41:13 PM ET
      $AFB
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    • SEC Form 3 filed by new insider Gerken R Jay

      3 - ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND (0001162027) (Issuer)

      1/6/25 1:37:05 PM ET
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    • Large owner Bank Of America Corp /De/ bought $103,631 worth of shares (7,263 units at $14.27) and sold $102,672 worth of shares (7,263 units at $14.14) (SEC Form 4)

      4 - ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND (0001162027) (Issuer)

      12/13/24 4:33:50 PM ET
      $AFB
      Trusts Except Educational Religious and Charitable
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    • Large owner Saba Capital Management, L.P. bought $385,358 worth of shares (34,874 units at $11.05) (SEC Form 4)

      4 - ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND (0001162027) (Issuer)

      6/25/24 5:45:29 PM ET
      $AFB
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    • Large owner Bank Of America Corp /De/ disposed of 5,754 units of Variable Rate Muni Term Preferred Shares and sold $17,424 worth of shares (1,600 units at $10.89) (SEC Form 4)

      4 - ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND (0001162027) (Issuer)

      6/10/24 9:22:37 PM ET
      $AFB
      Trusts Except Educational Religious and Charitable
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