AB European Income Portfolio

Income and Stability for Changing Markets

In today’s environment of rising rates, investors need a way to generate meaningful income without high risks to their capital. In a context of economic and geopolitical tension it takes real expertise to find good sources of income while limiting downside risk.

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.

What the Fund Offers

The AB European Income Portfolio aims to deliver a high regular income and capital stability over the long-term.

Einkommen

Designed for investors looking for a regular income of around 3% to 4% pa.*
Accesses a wide range of high-yielding corporate bonds to enhance income.
Powered by euro-denominated bonds from across Europe and worldwide.
Employs a balanced, multi-sector approach in search of the best opportunities.

Stabilität

Seeks low volatility and capital stability over the long-term.
Invests at least 50% in investment grade rated government and corporate bonds for stability.
Dynamic allocation helps preserve capital and reduces the impact of big market falls.
Guarding against big losses means better potential for capital growth over the longer-term.

View performance and fund information

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.
*This is an internal target, it is not guaranteed. Depending on share class and currency selected, the level of income and capital growth will vary.

How it Works

Balancing income and stability by seeking the best mix of euro-denominated bonds.

Balancing income and stability

The key to success is to maintain the right balance of risks in the portfolio. In particular, we limit the Fund’s exposure to high-yield bonds to 50%, to avoid excessive risk-taking. And invest at least 50% in investment grade rated government and corporate bonds for stability.

Dynamic asset allocation

Our approach dynamically adjusts investment allocations as market conditions change. Using a disciplined investment process, we actively manage the risk exposure between more stable government and income-generating corporate bonds.

Picking the right bonds

It takes intensive research to pick the right bonds. We look at individual issuers and issues to pick bonds that have the right mix of high income and stability. And we use a powerful combination of quantitative and fundamental research to discover opportunities others may miss.

Faster, Smarter, More Efficient Income Investing

The Portfolio harnesses AB’s proprietary fixed-income technology (including Abbie, ALFA and PRISM) which enhances our research and portfolio-management capabilities. This enables us to leverage our research and insights more efficiently, take decisions more quickly and execute trades faster and better, resulting in fewer missed opportunities.

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An Experienced Team

Our Portfolio Managers, backed by a dedicated team of fundamentals and quantitative research analysts, bring deep experience and global perspectives. And with Abbie, they now have a digital assistant that can build trade orders and source bonds that are hard to find in today’s less-liquid markets.

Benefits of Investing

Income

Designed for investors looking for a regular income of around 3% to 4% pa.*
Stability

Seeks low volatility and capital stability over the long-term
Diversification

Balances investments in high quality investment grade bonds with higher-yielding corporate bonds
Strong total return potential

Powered by a balanced, multi-sector approach that has successfully navigated different market environments for over 20 years
AllianceBernstein

A leader in fixed-income investing with over $290 billion AUM

Risks to Consider

Fixed-income securities risk:

Investments in fixed-income securities will change in response to fluctuations in interest rates and currency exchange rates, as well as changes in the credit quality of the issuer.
Credit risk:

The risk that issuers or counterparties may not be able to meet interest payments or repay the capital borrowed. A default by the issuer may impact the value of the Portfolio.
Lower-rated and unrated instruments risk:

These types of securities are subject to a greater risk of loss of capital and interest, and are generally less liquid and more volatile.
Other risks include:

Market risk, derivatives risk, emerging-markets risk, liquidity risk, focused portfolio risk, portfolio turnover risk, OTC derivatives counterparties risk, structured investments risk, sovereign-debt obligations risk and corporate debt obligations risk.
These and other risks are described in the Portfolio’s prospectus.

All Insights

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.