AB Sustainable US Thematic Portfolio (SUTCX)
Formerly: AB FlexFee US Thematic Portfolio
Overview
A benchmark-agnostic equity portfolio built around forward-looking thematic opportunities, not backward-looking indices
About this Fund
- Employs a “top-down” and “bottom-up” investment process with the goal of identifying securities, fitting into sustainable investment themes
- Identifies sustainable investment themes that are broadly consistent with achieving the United Nations Sustainable Development Goals, such as health, climate, and empowerment
- Uses “bottom-up” company analysis, focusing on prospective earnings growth, valuation, and quality of company management and its exposure to ESG factors
Investment Approach
- Normally holds 30-60 stocks, all exposed to long-term sustainable investment themes
- Consists of U.S. equities, aligned with sustainable themes, diversified across industries and market caps
- Both newer companies and well-known, established companies of all market caps
Net expense ratio, if applicable, reflects the contractual waiver of a portion of the Advisor’s fee and/or reimbursement of a portion of the Fund’s operating expenses. This waiver and/or reimbursement extends through a particular date, as specified in the Fund’s current prospectus, and may be further extended or terminated by the Advisor, as set forth in the prospectus. Absent waivers and/or reimbursements, performance would have been lower.
For more information on sales charges and expenses visit Understanding Sales Charges & Expenses.
Meet the Team
Thematic investing means putting your dollars to work where the world is headed.
Ben Ruegsegger, CFA—Portfolio Manager—Sustainable US Thematic; Senior Research Analyst-Sustainable Thematic Equities
Responsible Investments
Pricing & Performance
The performance shown represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. The investment return and principal value of an investment in the Portfolio will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance assumes reinvestment of distributions and does not account for taxes.
Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit our Literature Center or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.
If applicable, please keep in mind that high, double-digit returns are highly unusual and cannot be sustained. Investors should also be aware that these returns were primarily achieved during favorable market conditions. The net asset value (NAV) price is the value of one share of the Portfolio as of the date listed. The NAV does not take into account any initial sales charges that may apply when shares are purchased or redemption charges when shares are sold; if these sales charges were reflected, the Portfolio’s quoted performance would be lower. The NAV change is the change in value of one share of the Portfolio from the prior day’s value.
© 2023 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
The Morningstar Rating™ for funds, or star rating, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. The star rating is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10.0% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35.0% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10.0% receive 1 star. The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36–59 months of total returns, 60% five-year rating/40% three-year rating for 60–119 months of total returns and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Lipper ratings are based on total returns at net asset value, without the imposition of a sales charge, which would reduce total return figures. Funds in the Lipper category generally have similar investment objectives for the funds, although some may have different investment policies.
The reinvest price is the net asset value (NAV) price. The NAV price is the value of one share of the Fund as of the Ex Date. The NAV does not take into account any sales charges that may apply when shares are purchased or redeemed.
Distribution yield is calculated on a 30-day rolling basis by annualizing the average of the dividends distributed over the most recent 30-day period and dividing that figure by the current NAV. The 30-Day Yield represents net investment income earned by the Fund over the 30-Day period, expressed as an annual percentage rate based on the Fund's share price at the end of the 30-Day period. The 30-Day unsubsidized SEC Yield does not reflect any fee waivers/reimbursements/limits in effect. The distribution yield calculation does not include long-term or short-term capital gains distributions.
Holdings & Characteristics
See the most recent fact sheet, shareholder report or prospectus for portfolio holdings and characteristics.
Complete Portfolio Holdings
Holdings and characteristics shown include underlying investments of pooled vehicles. Holdings are subject to change without notice.
The Fund’s/Portfolio’s holdings (including derivatives) are expressed as a percentage of total investments and may vary over time. They are provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities mentioned.
Literature
Additional Information
Investment Definitions
Alpha is the risk-adjusted measurement of "excess return" over a benchmark. Beta is a measure of an investment’s volatility in comparison to the market as a whole. Duration is a measure of the sensitivity of an asset or portfolio’s price to interest rate movements. Information ratio is a measurement of portfolio returns beyond the returns of a benchmark, compared to the volatility of those returns. R-squared is the percentage of a portfolio’s price movements that can be explained by movements in a benchmark index. Sharpe ratio is a measure of the fund’s return relative to the investment risk it has taken. A higher Sharpe ratio means the fund’s returns have been better given the level of risk the fund has taken. Standard deviation is a measure of the dispersion of a portfolio’s return from its mean. Tracking error is the difference in actual performance between a portfolio and its corresponding benchmark. Up capture measures the percentage of market gains captured when markets are up. Down capture measures the percentage of market losses endured when markets are down.
Risks To Consider
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Capitalization Size Risk (Small/Mid): Small- and mid-cap stocks are often more volatile than large-cap stocks?smaller companies generally face higher risks due to their limited product lines, markets and financial resources.
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ESG Risk: Applying ESG and sustainability criteria to the investment process may exclude securities of certain issuers for nonfinancial reasons and, therefore, the Fund may forgo some market opportunities available to funds that do not use ESG or sustainability criteria.
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Foreign (Non-U.S.) Investment Risk: Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade than domestic securities due to adverse market, economic, political, regulatory, or other factors.
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Market Risk: The market values of the portfolio’s holdings rise and fall from day to day, so investments may lose value.
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Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit our Literature Center or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.
AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the manager of the funds.
AB mutual funds may be offered only to persons in the United States and by way of a prospectus. This website should not be considered a solicitation or offering of any investment products or services to investors residing outside of the United States.
Investment Products Offered: Are Not FDIC Insured | May Lose Value | Are Not Bank Guaranteed
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
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