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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/28/20 AB Equity Income Fund Inc 497K 2/28/20 1:187K Donnelley … Solutions/FA → AB Equity Income Fund Inc. ⇒ Advisor Class (AUIYX) — Class A (AUIAX) — Class C (AUICX) — Class I (AUIIX) — Class K (AUIKX) — Class R (AUIRX) — Class Z (AUIZX) |
Document/Exhibit Description Pages Size 1: 497K Ab Equity Income Fund, Inc. HTML 76K
| AB Equity Income Fund, Inc. |
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SUMMARY PROSPECTUS February 28, 2020 |
AB Equity Income Fund
Ticker: Class A–AUIAX; Class C–AUICX; Advisor Class–AUIYX; Class R–AUIRX;
Class K–AUIKX; Class I–AUIIX; Class Z–AUIZX
Before you invest, you may want to review the Fund’s Prospectus, which contains more information about the Fund and its risks. The Fund’s Prospectus and Statement of Additional Information (“SAI”), both dated February 28, 2020, as may be amended or supplemented, are incorporated by reference into this Summary Prospectus. For free paper or electronic copies of the Fund’s Prospectus, reports to shareholders and other information about the Fund, go to www.abfunds.com/go/prospectus, email a request to prorequest@alliancebernstein.com, call (800) 227-4618, or ask any financial advisor, bank, or broker-dealer who offers shares of the Fund.
PRO-0103-EI-0220
Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221-5672.
You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221-5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.
INVESTMENT OBJECTIVE
The Fund’s investment objective is current income and long-term growth of capital.
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AB Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the Funds—Sales Charge Reduction Programs for Class A Shares on page 68 of the Fund’s Prospectus, in Appendix B—Financial Intermediary Waivers of the Fund’s Prospectus and in Purchase of Shares—Sales Charge Reduction Programs for Class A Shares on page 131 of the Fund’s SAI.
You may be required to pay commissions and/or other forms of compensation to a broker for transactions in Advisor Class shares, which are not reflected in the tables or the examples below.
Shareholder Fees (fees paid directly from your investment)
| Class A Shares |
Class C Shares |
Advisor Class Shares |
Class R, K, I, and Z Shares | |||||
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
4.25% | None | None | None | ||||
| Maximum Deferred Sales Charge (Load) (as a percentage of offering price or redemption proceeds, whichever is lower) |
None(a) | 1.00%(b) | None | None | ||||
| Exchange Fee |
None | None | None | None |
S-1
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
| Class A | Class C | Advisor Class | Class R | Class K | Class I | Class Z | ||||||||||||||||||||||
| Management Fees |
.55% | .55% | .55% | .55% | .55% | .55% | .55% | |||||||||||||||||||||
| Distribution and/or Service (12b-1) Fees |
.25% | 1.00% | None | .50% | .25% | None | None | |||||||||||||||||||||
| Other Expenses: |
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| Transfer Agent |
.09% | .09% | .09% | .26% | .20% | .12% | .02% | |||||||||||||||||||||
| Other Expenses |
.10% | .10% | .10% | .10% | .10% | .10% | .11% | |||||||||||||||||||||
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| Total Other Expenses |
.19% | .19% | .19% | .36% | .30% | .22% | .13% | |||||||||||||||||||||
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| Total Annual Fund Operating Expenses |
.99% | 1.74% | .74% | 1.41% | 1.10% | .77% | .68% | |||||||||||||||||||||
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| (a) | Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge, or CDSC, which may be subject to waiver in certain circumstances. |
| (b) | For Class C shares, the CDSC is 0% after the first year. Class C shares automatically convert to Class A shares after ten years. |
Examples
The Examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year and that the Fund’s operating expenses stay the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
| Class A | Class C | Advisor Class | Class R | Class K | Class I | Class Z | ||||||||||||||||||||||
| After 1 Year |
$ | 522 | $ | 277 | * | $ | 76 | $ | 144 | $ | 112 | $ | 79 | $ | 69 | |||||||||||||
| After 3 Years |
$ | 727 | $ | 548 | $ | 237 | $ | 446 | $ | 350 | $ | 246 | $ | 218 | ||||||||||||||
| After 5 Years |
$ | 949 | $ | 944 | $ | 411 | $ | 771 | $ | 606 | $ | 428 | $ | 379 | ||||||||||||||
| After 10 Years | $ | 1,586 | $ | 2,052 | $ | 918 | $ | 1,691 | $ | 1,340 | $ | 954 | $ | 847 | ||||||||||||||
| * | If you did not redeem your shares at the end of the period, your expenses would be decreased by approximately $100. |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys or sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Fund Operating Expenses or in the Examples, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 43% of the average value of its portfolio.
PRINCIPAL STRATEGIES
The Fund invests primarily in a diversified portfolio of equity securities of U.S. companies. Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities. The Fund invests primarily in income-producing securities, targeting an investment in such securities of at least 65% of its total assets. The Fund seeks current income and capital growth from investments in a wide range of industries.
The Fund invests in companies that the Adviser determines to be undervalued, using the fundamental value approach of the Adviser. The fundamental value approach seeks to identify a universe of securities that are considered to be undervalued because they are attractively priced relative to their future earnings power and dividend-paying capability. In selecting securities for the Fund’s portfolio, the Adviser uses fundamental and quantitative research to identify and invest in those companies whose long-term earnings power and dividend-paying capability are not reflected in the current market price of these securities.
The Adviser’s fundamental analysis depends heavily upon its large internal research staff. The research staff of company and industry analysts covers a research universe drawn primarily from the S&P 500 Index. The Adviser typically projects a company’s financial performance over a full economic cycle, including a trough and a peak, within the context of forecasts for real economic growth, inflation and interest rate changes. The Adviser’s research staff focuses on the valuations implied by the current price, relative to the earnings the company will be generating five years from now, or “normalized” earnings, assuming average mid-economic cycle growth for the fifth year.
The Fund’s management team and other senior investment professionals work in close collaboration to weigh each investment opportunity identified by the research staff relative to the entire portfolio and determine the timing and position size for purchases and sales. Analysts remain responsible for monitoring new developments that would affect the securities they cover. The team will generally sell a security when it no longer meets appropriate valuation criteria, although sales may be delayed when positive return trends are favorable.
S-2
The Fund may invest in securities of non-U.S. companies, but will limit its investments in any one non-U.S. country to no more than 15% of its net assets.
The Fund may enter into derivatives transactions, such as options, futures contracts, forwards, and swaps. The Fund may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, including on individual securities and stock indices, futures contracts (including futures contracts on individual securities and stock indices) or shares of exchange-traded funds (“ETFs”). These transactions may be used, for example, in an effort to earn extra income, to adjust exposure to individual securities or markets, or to protect all or a portion of the Fund’s portfolio from a decline in value, sometimes within certain ranges.
The Fund may, at times, invest in shares of ETFs in lieu of making direct investments in equity securities. ETFs may provide more efficient and economical exposure to the type of companies and geographic locations in which the Fund seeks to invest than direct investments.
PRINCIPAL RISKS
| • | Market Risk: The value of the Fund’s investments will fluctuate as the stock or bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market. |
| • | Foreign (Non-U.S.) Risk: Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors. |
| • | Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns. |
| • | Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk to a greater degree than more traditional investments. |
| • | 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. |
As with all investments, you may lose money by investing in the Fund.
BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an indication of the historical risk of an investment in the Fund by showing:
| • | how the Fund’s performance changed from year to year over ten years; and |
| • | how the Fund’s average annual returns for one, five and ten years compare to those of a broad-based securities market index. |
You may obtain updated performance information on the Fund’s website at www.abfunds.com (click on “Investments—Mutual Funds”).
The Fund’s past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future.
Effective September 1, 2010, the Fund changed its name from AllianceBernstein Utility Income Fund to AllianceBernstein Equity Income Fund (currently named AB Equity Income Fund), eliminated its policy to invest at least 80% of its assets in companies in the utilities industry, and adopted its current investment strategy. In addition, the Fund’s portfolio management team was changed. The performance information shown below for periods prior to the implementation of these changes may not be representative of performance the Fund will achieve under its current policies.
S-3
Bar Chart
The annual returns in the bar chart are for the Fund’s Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown.
During the period shown in the bar chart, the Fund’s:
Best Quarter was up 13.86%, 3rd quarter, 2010; and Worst Quarter was down -13.92%, 3rd quarter, 2011.
Performance Table
Average Annual Total Returns
(For the periods ended December 31, 2019)
| 1 Year | 5 Years | 10 Years | ||||||||||||||||
| Class A* | Return Before Taxes | 19.24% | 6.85% | 10.52% | ||||||||||||||
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| Return After Taxes on Distributions | 17.63% | 5.26% | 8.92% | |||||||||||||||
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| Return After Taxes on Distributions and Sale of Fund Shares | 12.42% | 5.14% | 8.33% | |||||||||||||||
| Class C | Return Before Taxes | 22.60% | 6.99% | 10.21% | ||||||||||||||
| Advisor Class | Return Before Taxes | 24.79% | 8.06% | 11.32% | ||||||||||||||
| Class R | Return Before Taxes | 23.99% | 7.36% | 10.63% | ||||||||||||||
| Class K | Return Before Taxes | 24.37% | 7.68% | 10.96% | ||||||||||||||
| Class I | Return Before Taxes | 24.78% | 8.04% | 11.32% | ||||||||||||||
| Class Z** | Return Before Taxes | 24.87% | 8.14% | 11.43% | ||||||||||||||
| S&P 500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% | 11.70% | 13.56% | |||||||||||||||
| * | After-tax returns: |
| – | Are shown for Class A shares only and will vary for the other Classes of shares because these Classes have different expense ratios; |
| – | Are estimates based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor’s tax situation and are likely to differ from those shown; and |
| – | Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. |
| ** | Inception date for Class Z shares is 10/15/13. Performance information for periods prior to the inception of Class Z shares is the performance of the Fund’s Class A shares adjusted to reflect the expense ratio of Class Z shares. |
INVESTMENT ADVISER
AllianceBernstein L.P. is the investment adviser for the Fund.
PORTFOLIO MANAGERS
The following table lists the persons responsible for day-to-day management of the Fund’s portfolio:
| Employee | Length of Service | Title | ||
| Cem Inal | Since 2018 | Senior Vice President of the Adviser | ||
| Joseph G. Paul* | Since 2010 | Senior Vice President of the Adviser | ||
| * | Mr. Paul is expected to retire from the Adviser effective December 31, 2020. |
S-4
PURCHASE AND SALE OF FUND SHARES
Purchase Minimums
The following table describes the initial and subsequent minimum purchase amounts for each class of shares, which are subject to waiver in certain circumstances.
| Initial | Subsequent | |||
| Class A/Class C shares, including traditional IRAs and Roth IRAs | $2,500 | $50 | ||
| Automatic Investment Program | None | $50 If initial minimum investment is | ||
| Advisor Class shares (only available to fee-based programs or through other limited arrangements and certain commission-based brokerage arrangements) | None | None | ||
| Class A, Class R, Class K, Class I and Class Z shares are available at net asset value, without an initial sales charge, to 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit-sharing and money purchase pension plans, defined benefit plans, and non-qualified deferred compensation plans and, for Class Z shares, to persons participating in certain fee-based programs sponsored by a financial intermediary, where in each case plan level or omnibus accounts are held on the books of the Fund. | None | None |
You may sell (redeem) your shares each day the New York Stock Exchange is open. You may sell your shares through your financial intermediary or by mail (AllianceBernstein Investor Services, Inc., P.O. Box 786003, San Antonio, TX 78278-6003) or telephone ((800) 221-5672).
TAX INFORMATION
The Fund may pay income dividends or make capital gains distributions, which may be subject to federal income taxes and taxable as ordinary income or capital gains, and may also be subject to state and local taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank or a group retirement plan), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
S-5
| PRO-0103-EI-0220 |
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S-6
| This ‘497K’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 1/1/21 | ||||
| 12/31/20 | ||||
| Filed on / Effective on: | 2/28/20 | 485BPOS | ||
| 12/31/19 | ||||
| 9/1/10 | 497, 497K, CORRESP, POS EX | |||
| List all Filings | ||||
