ES AllianceBernstein Sustainable US Equity Fund

Harnessing Responsible Returns

 

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.

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 Sustainable US Equity Fund aims to increase the value of investment over a rolling five- year period in an actively managed, diversified portfolio of shares in US companies exposed to environmentally or socially orientated investment themes derived from the SDGs such as health, climate or empowerment.

Strong Return Icon
Strong Return Potential
  • Aims to outperform the S&P 500 Index over the long term by investing exclusively in well-managed US companies that are aligned with the UNSDGs
  • Clear process that integrates ESG factors into all investment decisions in order to identify attractive opportunities 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 opportunities for active equity investors
  • *For informational purposes only. Source: United Nations and AB as at 31 March 2020.
World icon
Investing for a Better World
  • Our strategy is aligned with the UNSDGs, and their corresponding 169 targets from which we derive 3 core investable themes: climate, health and empowerment
  • In addition, we identify sub-themes within each of these categories to further clarity the investment opportunities represented by the UNSDGs
  • Sub-themes within climate, for example, include cleaner energy, resource efficiency, sustainable transportation, sanitation and recycling

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

Philosophy and Approach

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

Sustainability Goals & Theme Selection

With almost two decades of thematic investing experience, we invest in long-term, forward-looking themes — Climate, Health and Empowerment. We believe the SDGs are a powerful tool for identifying opportunities within our themes. We use a proprietary product identification methodology to find companies offering products, or have supply chains, that contribute to achieving the 17 SDGs.

Identifying the Strongest Candidates

Our team of sector experts conducts fundamental research to identify companies with the strongest SDG alignment, revenue growth, profitability and management quality. Analysts’ financial models incorporate a structured evaluation of material ESG factors to better gauge risk and return. 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.

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

AB Sustainable Thematic Portfolio

Portfolio Details:
   Portfolio Inception Date 25/10/1991
   Fund Net Assets (Mil) 2,319.37 as of 28/02/2021
   Fund Type FCP

Investing for a More Sustainable Tomorrow

DANIEL C. ROARTY, CFA | Chief Investment Officer, Thematic & Sustainable Equities

Management Team
 

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 actively making an impact by investing in better stocks for a better world.

Why Invest?

  1. Strong Return Potential:

    Actively-managed portfolio of US companies with compelling growth prospects and valuations

  2. Investing for a Better World:

    Invests exclusively in well-managed US companies that are aligned with the UN Sustainable Development Goals

  3. ESG Integration:

    Deep integration at all steps of the investment process helps improve fundamental analysis. Active ownership with emphasis on ESG issues positively influences management behaviour

  4. Firmwide Commitment to Responsible Investing:

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

Past performance does not guarantee future results.

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)