AB Sustainable Global Thematic Portfolio

AB Sustainable Global Thematic Portfolio

Responsible Investing for a Better World

Many equity investors want to help create social benefits while generating strong returns. Deploying a clear investment process that draws on the United Nations’ Sustainable Development Goals (UNSDGs) and integrates environmental, social and governance (ESG) factors in research can help investors achieve these twin goals.

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What the Fund Offers

The AB Sustainable Global Thematic Portfolio aims to deliver long-term capital growth by investing in a diversified portfolio of companies positively exposed to environmentally or socially orientated investment themes derived from the UNSDGs.

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Strong Return Potential

  • Aims to outperform the MSCI AC World Index over the long-term by investing exclusively in well-managed companies that are aligned with the UNSDGs.
  • Clear investment process that integrates ESG factors in all investment decisions to identify attractive investments with compelling growth prospects and valuations.
  • The estimated costs to achieving the UNSDGs are massive – roughly US$90 trillion*. The private sector will play a key role in achieving these goals, creating attractive investment opportunities for active equity investors.
Investing for a Better World icon

Investing for a Better World

  • Investors increasingly want to make ethical investments that make meaningful contributions to society, the environment and the world we live in.
  • Our strategy is aligned with the UNSDGs, and their corresponding 169 targets, which we condense into three core, investable themes: climate, health and empowerment.
  • In addition, we identify sub-themes within each of these categories to further clarify the investment opportunities represented by the UNSDGs.


*Source: United Nations as at 18 April 2017.

Daniel Roarty

Investing for a More Sustainable Tomorrow

Daniel Roarty

|

Chief Investment Officer – Sustainable Thematic Equities

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How it Works

We seek to generate attractive financial returns through investments that contribute to positive social and environmental outcomes.

Sustainability Goals & Theme Selection

We use a proprietary product identification methodology to find companies offering products, or with supply chains, that contribute to achieving the 17 UNSDGs. We look for companies with a market cap of more than US$1 billion and sufficient liquidity, then organise them into three main themes: Climate, Health, Empowerment.

Identifying the Strongest Candidates

Our team of sector experts conducts fundamental research to identify companies we believe have the strongest UNSDG alignment, revenue growth, profitability and management quality. Analysts’ financial models incorporate a structured evaluation of material ESG factors to better gauge risk. The team collectively vets all investment candidates.

Building a High-Conviction Portfolio

The Portfolio reflects the team’s highest-conviction ideas with positions sized for optimal risk/reward and balanced theme exposure. A disciplined risk-management and sell process is designed to maintain these exposures over time. Our team engages with company management to address material ESG issues on an ongoing basis.

The ESG Edge to Concentrated Equity Investing
Impact Report 2020

Our approach can provide investors with a tangible way to contribute to positive ESG outcomes and generate profits as well. In this report, Daniel Roarty and the team show you how our Sustainable Thematic portfolios are aiming to make an impact by investing in better stocks for a better world.

Read the Impact Report

Portfolio Manager

portrait of Daniel Roarty

Daniel Roarty

Chief Investment Officer—Sustainable Thematic Equities

10
Years at AB
28
Years of Experience

Daniel Roarty, CIO, is supported by a team of seven investment professionals with an average of 20 years of industry experience and a long history of research and investment in social and environmental themes.

Benefits of Investing

1

Strong Return Potential

The Portfolio seeks to outperform the MSCI AC World Index over the long-term and has a successful track record through different market environments

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Investing for a Better World

Invests exclusively in a global universe of well-managed companies that are aligned with the UN Sustainable Development Goals

3

Deep ESG integration

Aims to improve fundamental analysis at all steps of the investment process. Active ownership with emphasis on ESG issues may positively influence management behaviour

4

Excellence in Sustainable Investing

Our Portfolio is externally recognized for excellence in sustainable investing: awarded both the LuxFLAG ESG Label* and the French Finance Ministry’s Label ISR certification

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Firmwide Commitment to Responsible Investing

At AB, we’ve embraced responsible investing in spirit and practice, making it a key facet of our investment process and a central component of our firm’s identity

*LuxFLAG (the Luxembourg Finance Labelling Agency) is an independent body that raises awareness of and promotes the responsible investment industry. The ESG Label is awarded to funds that screen 100% of the portfolio using ESG criteria. Investors must not rely on the LuxFLAG ESG Label with regard to investor protection issues, and LuxFLAG shall not incur any liability related to the financial performance or default of the Portfolio. The LuxFLAG ESG Label was awarded in March 2019. The Label ISR was awarded in February 2019.

Risks to Consider

1

Equity Securities Risk:

The value of equity investments may fall as well as rise and you may get back less than you originally invested

2

Emerging-Markets Risk:

Where the Portfolio invests in emerging markets, these assets are generally smaller and more sensitive to economic and political factors, and may be less easily traded, which could cause a loss to the Portfolio

3

Derivatives Risk:

The Portfolio may include financial derivative instruments. These may be used to obtain, increase or reduce exposure to underlying assets and may create gearing; their use may result in greater fluctuations of the net asset value

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Other Risks Include:

Focused portfolio risk, allocation risk, portfolio turnover risk, OTC derivatives counterparty risk, Real Estate Investment Trust (REIT) risk

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These and other risks are described in the Portfolio’s prospectus

PRI logo

Principles for Responsible Investment

AB has invested responsibly for many years. In 2011, we honed and formalized our approach by signing the United Nations Principles for Responsible Investment (PRI). The six PRI are voluntary and aspirational, offering possible actions for incorporating ESG issues into investment analysis, decisions and practices.

The Principles were developed by investors, for investors. In implementing them, signatories contribute to developing a more sustainable global financial system. We’re committed to implementing all six principles as we continue to advance our responsible investing efforts.

Download AB’s PRI Transparency Report 2020 Download AB’s PRI Assessment Report 2020 Read More About the PRI

The Sustainable Global Thematic Portfolio (Portfolio) is a portfolio of AB SICAV 1, an investment company with variable capital (société d’investissement à capital variable) incorporated with limited liability under the laws of the Grand Duchy of Luxembourg, which is the issuer of shares in the Portfolio. Shares in the Portfolio are offered through an intermediary authorisation between the issuer and AllianceBernstein Australia Limited (ABAL) and is not registered for public distribution in Australia. This financial promotion is directed solely at persons in jurisdictions where the funds and relevant share class are registered or who may otherwise lawfully receive it. Before investing, investors should review the Fund’s full Prospectus, together with the Fund’s Key Investor Information Document and the most recent financial statements. Copies of these documents, including the latest annual report and, if issued thereafter, the latest semi-annual report, may be obtained free of charge from AllianceBernstein (Luxembourg) S.à r.l. by visiting www.alliancebernstein.com, or in printed form by contacting ABAL.

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