ABNTX

About ABNTX

AB Bond Inflation Strategy 2 is a mutual fund that primarily focuses on offering investors exposure to fixed income securities designed to provide inflation protection. Its core purpose is to help preserve purchasing power while delivering yield by investing in a diversified mix of inflation-linked bonds, notably Treasury Inflation-Protected Securities (TIPS), and by selectively including other fixed income sectors to enhance returns compared to TIPS-only strategies. The fund distinguishes itself by managing interest rate risk through a shorter-duration benchmark, specifically aligning with the Bloomberg 1-10 Year TIPS Index, which can help reduce sensitivity to interest rate fluctuations. Additionally, the portfolio employs both direct bond holdings and indirect exposure through derivatives such as total-return swaps linked to TIPS. This approach positions AB Bond Inflation Strategy 2 as a core-plus solution within the inflation-protected bond category, suitable for investors seeking an inflation-oriented option with potentially higher yield and enhanced diversification within their fixed income allocation.