Portfolios seeking to discover quality equity opportunities that support sustainable, long-term growth potential
Rising inflation, geopolitical tension and slowing economic growth are creating big challenges for equity investors.
But we believe there is still long-term return potential to be found despite the tough environment. The key is asking the right questions to help identify companies with the right features which can help overcome headwinds to earnings.
How to Identify Quality Growth Companies with Stronger Fundamentals
Investors searching for growth will find that a clearly defined focus on high quality businesses capable of delivering dependable earnings and cash flows is essential to support long-term equity return potential.
Not all companies are equally vulnerable to unpredictable market and macroeconomic forces. For example, dominant market positions often support sustainable growth, providing a company with a greater degree of control over its fate. Wide competitive moats and high barriers to entry are key ingredients for a market-leading position.
When macroeconomic trends are a huge driver of market movements, it tends to cloud investors’ vision of company-specific developments that ultimately determine future equity returns. We believe that by studying company fundamentals—where our analysts have skill, knowledge and experience—we’re able to better understand how businesses may fare under a range of likely outcomes.
To find growth, we look for companies that can benefit from long-term growth trends in sectors and industries, as well as broad themes, that generally don’t depend on cyclical macroeconomic growth. This approach helps us identify stocks from diverse industries with differentiated sources of growth potential that have what it takes to deliver returns through much tougher conditions.
We offer several approaches, from US and global portfolios with concentrated or diversified allocations to portfolios targeting trends in specific sectors. AB’s actively managed equity portfolios each use a disciplined investment process to discover opportunities in high quality companies with resilient business models that can support sustainable, long-term growth potential.
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.
The Portfolio/Fund is meant as a vehicle for diversification and does not represent a complete investment programme. Prospective investors should read the Prospectus, which includes Sustainability-Related Disclosures, and discuss risks and the Portfolio's/Fund’s fees and charges with their financial advisor to determine if the investment is appropriate for them. The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams and are subject to revision over time.
AB offers open-ended Luxembourg-based funds under AB FCP I, a mutual investment fund (fonds commun de placement) organized under the laws of the Grand Duchy of Luxembourg and AB SICAV I, an open-ended investment company with variable capital (société d’investissement à capital variable) incorporated under the laws of the Grand Duchy of Luxembourg.
Not all of the strategies and products we offer are available and/or registered for distribution in all jurisdictions. The sale of funds may be restricted or subject to adverse tax consequences in certain jurisdictions.
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This is a marketing communication. This information is provided by AllianceBernstein Limited, 60 London Wall, London, EC2M 5SJ. Registered in England, No. 2551144. AllianceBernstein Limited is authorised and regulated in the UK by the Financial Conduct Authority (FCA - Reference Number 147956). 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.