Sustainable stocks fell much less than the broader market during the historic market crash in the first quarter. But a sustainable investing agenda provides much more than downside mitigation. We believe that ESG-focused portfolios can deliver results in a wide range of market conditions and can provide several benefits to investors through the COVID-19 crisis and an eventual recovery.
With a renewed focus on the SDGs as the world emerges from the coronavirus shock, investors can identify companies that help improve the resilience and long-term health of society and equity portfolios. Dan Roarty and Ben Ruegsegger, fund managers of the new ES AllianceBernstein Sustainable US Equity Fund, seeks to generate strong financial returns for clients through investment in US companies that contribute to positive social and environmental outcomes.
What the Fund Offers:
+ Strong return potential is generated by following a clear process that integrates Environmental, Social and Governance (ESG) factors into all investment decisions—helping to identify attractive opportunities with compelling growth prospects and valuations.
+ Our long-term investment strategy is driven by forward-looking themes—Climate, Health and Empowerment—with high conviction stock selection aligned to the 17 UN Sustainable Development Goals (SDGs) and their 169 corresponding targets.
+ The estimated costs of achieving the SDGs are massive—roughly US$90 trillion.* The private sector will play a key role in achieving these goals, creating attractive opportunities for active equity investors.
AB Sustainable US Equities Across Different Market Environments
The OEIC fund is based on an existing AB strategy with GIPS compliant performance track record. The manager 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 Sustainable US Thematic Composite (the "Strategy"), gross of fees, in GBP since inception on 31 December 2015. Although similar, the performance of the Strategy is not the same as that of the ES AllianceBernstein Sustainable US 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
Management Team
+ Equity 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 Documents (KIIDs) and Prospectus.
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.
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).
