Strategy

The Portfolio seeks to achieve attractive risk adjusted returns (that are uncorrelated to equity or fixed income returns) over the long term, by following a global multi-strategy investment approach:

The Portfolio uses a multi-portfolio manager strategy by obtaining indirect exposure to a wide variety of alternative investment strategies accessed through derivatives, specifically total return swaps (“TRS”) (the “Strategies”).
The Strategies that the Portfolio will gain indirect exposure to through the TRS include equity long/short, relative value, quantitative and systematic trading, short and medium term trading portfolios, global macro trading, special situations, and arbitrage opportunities across all sectors and markets.
Using a significant amount of financial derivative instruments, and therefore may hold cash, cash-equivalents, or investments in securities issued by the governments of the US, the United Kingdom, Germany, Canada, Australia and Japan up to 100%.

Please note the valuation and returns of the TRS incorporate the costs associated with the Selected Managers. These costs are not therefore included in the ongoing charges of the Portfolio. Note that there may be additional costs associated with the operational management of the TRS which form part of the Fund’s transaction costs. For more information about charges, please refer to the Fund's prospectus together with the KIID or KID and the most recent financial statements.

This is a product that is not simple and may be difficult to understand.

Portfolio Management Team

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:

Corporate debt obligations risk: The risk that a particular issuer may not fulfill its payment and other obligations. In addition, an issuer may experience adverse changes to its financial position or a decrease in its credit rating resulting in increased debt obligation price volatility and negative liquidity. There may also be a higher risk of default.
Country risk: Where the Portfolio invests in a single country, these assets are generally smaller, more sensitive to economic and political factors, and may be less easily traded which could cause a loss to the Portfolio.
Currency risk: Investments may be denominated in one or more currencies which are different from the Portfolio’s base currency. Currency movements in the investments may significantly affect the net asset value of the Portfolio.
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.
Fixed-income securities risk: The value of these investments will change in response to fluctuations in interest rates and currency exchange rates, as well as changes in the credit quality of the issuer. Also, medium, lower and unrated securities may be subject to wider fluctuations in yield and market values than higher-rated securities.
Interest-rate risk: As interest rates rise, bond prices fall and vice versa; long-term securities tend to rise and fall more than short-term securities.
Lack of operating history risk: Certain portfolios may be recently formed and have no operating history
Liquidity risk: The risk that arises when adverse market conditions affect the ability to sell assets when necessary. Reduced liquidity may have a negative impact on the price of the assets.
Lower-rated and unrated instruments risk: These securities are subject to a greater risk of loss of capital and interest, and are usually less liquid and more volatile. Some investments may be in high-yielding fixed-income securities, so the risk of depreciation and capital losses may be unavoidable
Management risk: The use of derivative transactions may not achieve anticipated benefits or may realise losses, adversely impacting the Portfolio, if the Investment Manager is not able to correctly predict price movements, interest rates or currency exchange rate movements and, in addition, does not appropriately understand the derivative or the underlying instrument.
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.
Prepayment risk: The risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Portfolio to a lower rate of return upon reinvestment of principal.
Real estate investment trust (REIT) risk: Investing in equity REITs may be affected by changes in the value of the underlying property owned by the REITS, while mortgage REITs may be affected by the quality of any credit extended. REITS depend on management skills, are not diversified, subject to heavy cashflow dependency, default by borrowers and self-liquidation and subject to interest-rate risks.
Sovereign debt obligations risk: The risk that government issued debt obligations will be exposed to direct or indirect consequences of political, social and economic changes in various countries. Political changes or the economic status of a country may impact the willingness or ability of a government to honour its payment obligations.
Taxation risk: Securities may be subject to taxation resulting from income or realised capital gains and double-tax treaties may or may not exist within the jurisdictions of these investments. In addition, applicable tax laws and interpretations thereof may change. There is a risk that withholding tax may therefore be applied by the country of residence of the issuer, which is neither refundable or subject to reduction and could adversely affect the Net Asset Value (NAV) of the Portfolio.

Fund Literature

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.