In a world of increased uncertainty, many investors' natural instinct is to "hedge their bets" by diversifying, rather than investing in a concentrated strategy. But this year, a portfolio consisting of just the five largest US stocks would have significantly outperformed.
So, is there a way to reduce risk and to capture long-term growth in a concentrated portfolio?
Mark Phelps and Dev Chakrabarti, fund managers of the new ES AllianceBernstein Concentrated Global Equity Fund, believe the key is to identify companies that provide opportunities for persistent growth through changing market environments
AB Concentrated Global Equity Performance Across Different Market Environments
The OEIC fund is based on an existing AB strategy with GIPS compliant performance track record. The management team applies the same, clear investment philosophy and process—which underpins our distinctive high-conviction approach.
Strategy past performance is not a reliable indicator of future results. The value of investments and the income from them will vary. Your capital is at risk.
*Based on performance of the institutional AB Concentrated Global Growth Composite (the "Strategy"), gross of fees, in GBP since inception on 31 March 2005. Although similar, the performance of the Strategy is not the same as that of the ES AllianceBernstein Concentrated Global Equity Fund. The returns presented above are gross of fees and do not reflect the deduction of investment-management fees: the client's return will be reduced by the management fees and any other expense incurred in the management of their account. Full GIPS composite performance disclosures for the Strategy are available on request.
As of 31 July 2020. Source: MSCI and AB
Highlights of Our Approach
+ Active Growth Potential: Concentrated portfolio of 30 high-conviction stocks, with intensive bottom-up stock selection driven by AB's experienced team.
+ Quality over Quantity: Small number of high quality companies demonstrating strong earning streams—in excess of 10% per annum—and stable growth potential, can help underpin consistent long-term performance.
+ Consistent Alpha: Risk-aware approach, focusing on businesses with sustainable growth trajectories to reduce earnings volatility and help deliver consistent returns across different market environments.
Past performance does not guarantee future results.
Fund Management Team
Chief Investment Officer—Concentrated Global Growth
Mark's Bio »
Portfolio Manager—Concentrated Global Growth
Dev's Bio »
For Investment Professional use only. Not for inspection by, distribution or quotation to, the general public. The value of an investment can go down as well as up and investors may not get back the full amount they invested. Before making an investment, investors should consult their financial advisor.
+ Equities Securities Risk: The value of equity investments may fluctuate in response to the activities and results of individual companies or because of market and economic conditions. These investments may decline over short- or long-term periods.
+ Liquidity Risk: In times of difficult market conditions it may be harder or take longer to sell assets. This may impact on the price of the assets and the value of the Fund.
+ Derivatives Risk: The Fund may use financial derivative instruments which may result in increased gains or losses.
+ Other Risks Include: Concentration Risk, Counterparty and Custody Risk, Country Risk, Currency Risk, Illiquid or Restricted Securities Risk, Investment in Collective Investment Schemes Risk, Management Risk and Small- and Mid-Cap Equity Risk.
For a full explanation of risks and the overall risk profile of this Fund and the share classes within it, please refer to the Key Investor Information Document (KIID) and Prospectus.
The Fund is suitable for a higher risk tolerant investor with long-term investment horizons.
The ES AllianceBernstein Funds are Sub Funds of ES AllianceBernstein UK OEIC, an open-ended investment company. Equity Trustees Fund Services Ltd is the Authorised Corporate Director (ACD) of the Funds. The Prospectus, KIID, annual and semi-annual reports are available, in English, free of charge from the ACD's website, (www.equitytrustees.com) Full GIPS composite performance disclosures are available for each strategy from the Investment Manager, on request.
This email is for informational purposes only and does not constitute investment advice. AllianceBernstein L.P. does not provide tax, legal or accounting advice. It does not take an investor's personal investment objectives or financial situation into account; investors should discuss their individual circumstances with appropriate professionals before making any decisions.
Issued by AllianceBernstein Limited, 50 Berkeley Street, London W1J 8HA, registered in England, No. 2551144. AllianceBernstein Limited is authorised and regulated in the UK by the Financial Conduct Authority (FCA