At AB, we believe that research, engagement and integration of material ESG issues can help us better assess risks and identify opportunities, ultimately leading to enhanced decision-making and better client outcomes.

The industry expertise of our investment team is important to understanding material ESG issues. Moreover, AB’s Responsibility team complements the investment teams’ research and engagement efforts. The Responsibility team members have domain expertise in E, S and G issues, which can be used to challenge the investment teams’ thinking and equip our fundamental analysts with tools and training to consider material ESG issues, where applicable. 

From idea generation to ongoing stewardship, integrating ESG involves considering material ESG risks and opportunities throughout the investment process. For ESG-integrated strategies, we incorporate material ESG issues when conducting research. Engagement then helps us support our clients’ interests. It enables us to share our ESG research assessment and encourage issuers to better address material ESG risks or take advantage of ESG opportunities in their best interests. When we ultimately make decisions, we recognize that material ESG risks and opportunities may have an impact on financial outcomes. Finally, we continue our stewardship through ongoing engagement with issuers, proxy voting and industry involvement.

Clients often define responsible investing in very individualized ways. Diverse priorities and distinct preferences often point toward very different approaches, and some investors seek an ESG-focused approach for their portfolios.

That’s why AB offers a broad range of thoughtfully designed solutions, each seeking to achieve financial objectives with a dedicated ESG focus: our Portfolios with Purpose platform.

From equities to fixed income and from multi-asset to alternatives, investors can access these strategies across asset classes. The Portfolios with Purpose also offer diverse sector exposures and performance patterns suitable for different types of market environments. Broadly speaking, we group our solutions into three categories: Sustainable portfolios, Impact portfolios and Responsible+ portfolios.

Since we launched the Portfolios with Purpose platform in 2013, we’ve continued to deepen and broaden it. Much of this effort has been informed by listening to our clients and understanding what they need. Our research has also driven innovation when we see opportunity in an ESG theme, whether it’s investing in low-carbon issuers or those aligned with the Sustainable Development Goals (SDGs).

To be effective stewards of our clients’ investments and maximize shareholder value, we vote proxies on behalf of our clients with the same commitment to rigorous research and engagement that we apply to our investment activities. We do not outsource our proxy-voting responsibilities nor adhere to the recommendations of proxy advisors. AB’s in-house global policy details how we approach specific topics, as well as our processes for managing conflicts of interest, voting execution, vote disclosure and recordkeeping. Our voting decisions are guided by what we determine as most likely to enhance long-term investment performance, and we will hold management accountable where appropriate.