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ES AllianceBernstein Europe (Ex UK) Equity Fund

Powered by a High-Conviction, Research Driven Approach

 

It takes an experienced team to identify companies that can thrive through challenging conditions. Using our differentiated research driven approach we look for attractively priced European (excluding the UK) companies with sustainable competitive advantages, or that are undergoing positive change, and in industries with strong or improving dynamics.

The value of an investment can go down as well as up and investors may not get back the full amount they invested. Capital is at risk.

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The Fund and What It Offers Investors

The ES AllianceBernstein Europe (Ex UK) Equity Fund aims to increase the value of investment over a rolling five-year period by investing in an actively managed, diversified portfolio of shares in companies throughout Europe (excluding UK) that offer compelling long-term return potential.

Investing as Business Owners
Investing as Business Owners

Applying a private equity–like mind-set to our approach, with a focus on cash flows, helps us to find businesses that are attractively valued and forecast their return potential.

Broader Perspectives on Risk
Broader Perspectives on Risk

Direct engagement with short sellers of stocks and use of quantitative risk models (such as Cluster Analysis) helps us to challenge our thinking and identify unintended risk exposures in the portfolio.

High-Conviction Stock Selection
High-Conviction Stock Selection

Extensive in-house fundamental and quantitative research capabilities help generate differentiated insights and stronger conviction in the companies we invest in.

The value of investments can go down as well as up and investors may not get back the full amount invested.  Capital is at risk.

Philosophy and Approach

We approach investing as business owners, developing a differentiated perspective on companies’ future cash flows and buying them at prices that offer attractive returns.

Investing as Business Owners

We think like business owners to really understand what makes a company tick, rather than worrying about the day-to-day noise of capital markets. Our bottom-up analysis focuses on business strategy, operations, market dynamics and management, instead of financial market metrics like a stock’s beta or volatility. Global research perspectives and analysts with on-the-ground industry experience help generate differentiated insights into industry dynamics.

Identifying Drivers of Returns

Candidate holdings are drawn from diverse industries across the market capitalization spectrum. And like private equity firms, we use internal rate of return (IRR) calculations to derive an annualized return rate from an investment’s cash flows. We don’t rely on market repricing to drive returns. This gives us better insight into the future profitability of the companies we invest in and their specific drivers of return.

Risk Aware Stock Selection

We aim to develop high-conviction positions by asking different questions from other analysts and taking a three- to five-year time horizon. That analysis is complemented by our extensive use of proprietary risk models, such as cluster analysis, which helps us to identify unintended risk exposures with the aim of amplifying return potential irrespective of the macroeconomic and political environment.

Our Investment Approach

ANDREW BIRSE | Portfolio Manager—European Value Equities

Strategy and Approach in Action

ANDREW BIRSE | Porfolio Manager—European Value Equities

Portfolio Management Team

The Fund is managed by Andrew Birse (Chief Investment Officer—European Value Equities) and Jane Bleeg (Portfolio Manager—European Value Equities). Andrew and Jane have more than 21 years and 19 years of investment experience respectively. They are supported by a dedicated team of European equity analysts with extensive on-the-ground industry experience and consulting.

 

ENGAGEMENT REPORT: 2H 2022

During the second half of 2022, AB portfolio managers and analysts conducted 21 engagements with the senior management and/or boards of directors of 20 distinct companies held by the ES AllianceBernstein Europe (Ex UK) Equity Fund on a range of subjects, including carbon emissions, diversity and inclusion (D&I), and executive compensation.

In this download, we present summary reports of a selection of our engagements with companies during the period. 

View Summary Reports

Why Invest?

  1. Attractive Growth Potential:

    Actively-managed, portfolio of European (excluding UK) companies offering compelling long-term return potential and attractive valuations

  2. Differentiated Research Insight:

    Global research perspectives and analysts with on-the-ground industry experience help generate differentiated insights into industry dynamics

  3. Investing as Business Owners:

    Disciplined process focused on cash flow and IRR, implemented with a private equity–like approach

  4. Broader Perspectives on Risk:

    Directly engaging with short sellers and extensive use of qualitative risk models

  5. High-Conviction Stock Selection:

    Driven by AB's experienced European Equity team with extensive global research resources

Risks to Consider

  1. 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

  2. Derivatives Risk:

    The Fund 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

  3. Focused Fund Risk:

    Investing in a limited number of issuers, industries, sectors or countries may subject the Fund to greater volatility than one invested in a larger or more diverse array of securities

  4. Other Risks Include:

    Concentration Risk, Counterparty & 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. 

The sale of funds may be restricted or subject to adverse tax consequences in certain jurisdictions. This information is directed solely at persons in jurisdictions where the fund (and share classes) are registered or who may otherwise lawfully receive it. Before investing, investors should review the fund prospectus, together with the relevant fund specific documentation including KIID and latest reports. 

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)

This is a marketing communication. This information is provided by AllianceBernstein (Luxembourg) S.à r.l. Société à responsabilité limitée, R.C.S. Luxembourg B 34 305, 2-4, rue Eugène Ruppert, L-2453 Luxembourg. Authorised in Luxembourg and regulated by the Commission de Surveillance du Secteur Financier (CSSF). It is provided for informational purposes only and does not constitute investment advice or an invitation to purchase any security or other investment. The views and opinions expressed are based on our internal forecasts and should not be relied upon as an indication of future market performance. The value of investments in any of the Funds can go down as well as up and investors may not get back the full amount invested. Past performance does not guarantee future results. 

This information is directed at Professional Clients only and is not intended for public use.

© AllianceBernstein L.P.