ES AllianceBernstein Concentrated US Equity Fund

Seeking Consistent Earnings Growth

 

 

 

Concentrated portfolios can offer consistent alpha in today’s low-growth world. But how can a small number of US stocks deliver strong excess and risk-adjusted returns with consistency? The key is to identify companies that can deliver persistent growth through changing markets.

The value of investments and the income from them will vary. Your capital is at risk.

The Fund and What It Offers Investors

The ES AllianceBernstein Concentrated US Equity Fund aims to increase the value of investment over a rolling five-year period by investing in an actively managed, concentrated, high-conviction portfolio of US companies, selected for their growth and business characteristics and consistent revenue and earnings growth potential.

Attractive Growth Potential:
Attractive Growth Potential

Concentrated portfolio of high- conviction, US growth stocks, with intensive bottom-up stock selection driven by AllianceBernstein’s (AB’s) experienced team.

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Small number of high-quality companies demonstrating strong revenue streams – in excess of 10% per annum – and stable growth potential, can help underpin consistent long-term performance.

Consistent Alpha:
Consistent Alpha

Risk-aware approach, focusing on businesses with sustainable growth trajectories to reduce earnings volatility and help deliver consistent returns across different market environments.

The value of investments and the income from them will vary. Your capital is at risk.

Philosophy and Approach

We believe that long-term, consistent earnings growth drives long-term investment returns.

Identifying Quality

We search for a select group of high-quality US companies with forward earnings growth potential of at least 10% per annum over five years. Companies with these characteristics are more likely to outperform the market. Our in-depth research targets superior businesses with consistent earnings streams.

Evaluating the Strongest Candidates

Then we create a shortlist of the most attractive stocks. Companies must have strong management, dominant franchises and businesses that can sustain growth through both good and challenging economic times. Strong balance sheets and low regulatory risk are also essential features.

Investing in the Best of the Best

For the final cut, we develop five-year projections and subject each company to a team debate about the right price to pay. Only those with the highest expected return and attractive valuations merit a high-conviction position in our portfolio, which span diverse industries.

AB also offers a SICAV Fund which follows the same philosopy and investment process as the OEIC fund.

AB Concentrated US Equity Portfolio

Portfolio Details:
  Portfolio Inception Date 23/12/2013
  Fund Net Assets (Mil) 1,085.15 as of 28/02/2021
  Fund Type SICAV

Focussing on Quality Growth

JAMES T. TIERNEY, JR. | Chief Investment Officer, Concentrated US Growth

AB Concentrated Equity Annual Stewardship Report

 

In the report you will find:

  • Summary of the Concentrated Growth team’s approach to responsible investing
  • The role company engagements play in our responsible investing strategy
  • Review of the team’s 2020 goals to engage with portfolio companies on carbon emissions and gender diversity
  • Company specific examples of environmental, social and governance engagements
  • Engagements and responses to some of the controversies that occurred during 2020
  • Outline of our responsible investing goals for 2021
 

Citywire Live Market Insight: 2021 US EQUITY OUTLOOK:

AB's Concentrated US Equity Portfolio Manager, Jim Tierney caught up with Citywire to discuss the outlook for US Equities. 

Portfolio Manager

James Tierney, CIO, has over 30 years of industry experience and has managed the US Growth Strategy since 2008 (previously at W.P. Stewart & Co). He leads a team of dedicated analysts with an average of over 21 years of experience and one of the highest "analyst to company" ratios in the industry.

Why Invest?

  1. Attractive Growth Potential:

    Actively-managed, concentrated portfolio of high-calibre stocks

  2. Quality Over Quantity:

    Selectively investing in quality companies with consistent revenue and earnings growth potential of more than 10% p.a.

  3. Consistent Alpha:

    Risk-aware approach, focusing on businesses with sustainable growth trajectories to reduce earnings volatility

  4. Investing in the Best of the Best:

    Robust analysis on each company, assessing five-year projections and attractiveness of valuation

  5. High Conviction Stock Selection:

    Driven by AB’s experienced team – with one of the industry’s highest ‘analyst to company’ rations and access to extensive global research resources

Risks to Consider

  1. Equities 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 periods

  2. 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

  3. Derivatives Risk:

    The Fund may use financial derivative instruments which may result in increased gains or losses

  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, 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)