Fund Evaluator:

AB Discovery Value Advisor Overview

AB Discovery Value Advisor (ABYSX) is an actively managed U.S. Equity Small Value fund. AllianceBernstein launched the fund in 2001.

The investment seeks long-term growth of capital. The fund invests primarily in a diversified portfolio of equity securities of small- to mid-capitalization U.S. companies. Under normal circumstances, it invests at least 80% of its net assets in securities of small- to mid-capitalization companies. For purposes of this policy, small- to mid-capitalization companies are those that, at the time of investment, fall within the capitalization range between the smallest company in the Russell 2500® Value Index and the greater of $5 billion or the market capitalization of the largest company in the Russell 2500® Value Index.

About AB Discovery Value Advisor (ABYSX)

There are 2 members of the management team with an average tenure of 14.01 years: Erik Turenchalk (2020), James MacGregor (2005). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Russell 2500 Value TR USD index with a weighting of 100%. AB Discovery Value Advisor has 102 securities in its portfolio. The top 10 holdings constitute 15.8% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

AB Discovery Value Advisor is part of the Equity global asset class and is within the U.S. Equity fund group. AB Discovery Value Advisor has 1.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.8%. There is 1.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). AB Discovery Value Advisor has 1.7% of the portfolio in cash.

Assets Under Management

The fund has $1 billion in total assets, which is above the $417 million average for the Small Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

ABYSX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The AB Discovery Value Advisor expense ratio is high compared to funds in the Small Value category. AB Discovery Value Advisor has an expense ratio of 0.83%, which is 29% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. AB Discovery Value Advisor has a portfolio turnover rate of 63%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 128% for the Small Value category.

Recently, in the month of July 2026, AB Discovery Value Advisor returned -0.9%, which earned it a grade of D, as the Small Value category had an average return of -0.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

AB Discovery Value Advisor has a trailing yield of 0.71%, which is below the 0.77% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

AB Discovery Value Advisor Grades

Year to date, the fund has returned 18.6%, 1.6 percentage points worse than the category, which translates into a grade of D. The fund has returned 22.3% over the past year (grade of F), 11.8% over the past three years (grade of D) and 7.3% per year over the past five years (grade of D) and 9.2% per year over the past 10 years (grade of D).

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