Prepared for Downturns, Poised for Recoveries

In challenging market conditions, investors need a defensive strategy that can help reduce losses in market downturns and fuel a stronger recovery - helping them maintain long-term confidence in the face of shorter-term market pressures.

A smoother investment journey

In a low yield environment, an effective investment approach helps provide a buffer against unexpected events while optimizing returns and managing risks. In turn, providing opportunities for steady growth and equity income. 

High conviction stock selection

Stable, quality companies with healthy cash flows and resilient business models are likely to withstand a downturn and come off it stronger allowing investors to capture more of the upside while mitigating downside risks such as slowing economic growth.

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.

An Experienced Team

Our Portfolio Managers, have decades of combined experience. As bottom-up stock pickers, they believe that buying high quality, stable companies at the right price can beat the market and mitigate downside risk. Using fundamental research and analysis and drawing on the firmwide expertise of AB’s investment specialists, they aim to identify the best businesses across the world.

Investment Risks to Consider

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

Investment in the Portfolio entails certain risks. Investment returns and principal value of the Portfolio will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Some of the principal risks of investing in the Portfolio include:

  • 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.

  • 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.

  • 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.

  • OTC derivatives counterparty risk: Transactions in over-the-counter (OTC) derivatives markets may have generally less governmental regulation and supervision than transactions entered into on organized exchanges. These will be subject to the risk that its direct counterparty will not perform its obligations and that the Portfolio will sustain losses.

  • Portfolio turnover risk: A portfolio may be actively managed and turnover may, in response to market conditions, exceed 100%. A higher rate of portfolio turnover increases brokerage and other expenses. High portfolio turnover may also result in the realization of substantial net short-term capital gains, which may be taxable when distributed.

  • Smaller capitalization companies risk: Investment in securities of companies with relatively small market capitalizations may be subject to more abrupt or erratic market movements because the securities are typically traded in lower volume and are subject to greater business risk.

Fund Literature