AB LOW VOLATILITY EQUITY PORTFOLIO · AB Low Volatility Equity Portfolio MSCI World 2,1% 2,4% AB...
Transcript of AB LOW VOLATILITY EQUITY PORTFOLIO · AB Low Volatility Equity Portfolio MSCI World 2,1% 2,4% AB...
AB LOW VOLATILITY EQUITY PORTFOLIO
26 November 2019
The Low Volatility Equity Portfolio (the “Fund”) is a portfolio of 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.
This document is issued by AllianceBernstein Limited, 50 Berkeley Street, London W1J 8HA. AllianceBernstein Limited is authorised and regulated in the UK by the Financial
Conduct Authority (FCA-Reference Number 147956). This information is directed solely at persons in jurisdictions where the Fund and relevant share class are registered, or who
may otherwise lawfully receive it. The sale of the Fund may be restricted or subject to adverse tax consequences in certain jurisdictions. In particular, no shares may be offered or
sold, directly or indirectly, in the US or to US Persons, as described in the Fund’s prospectus. This document is directed at Investment Professionals only. It is provided for
marketing purposes but does not constitute investment advice or an invitation to purchase any security or other investment. The views and opinions expressed in this document
are based on our internal forecasts and should not be relied upon as an indication of future market performance. Past performance does not guarantee of future results. This
document is not intended for public use. For Investment Professional use only. Not for inspection by, distribution or quotation to, the general public.
Nicholas Davidson Senior Portfolio Manager –Equities
In Q1 2019, AB Low Volatility was awarded Best Global Equity Fund by Morningstar in the following countries: Hong Kong, Singapore, Norway, The Netherlands
1|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
Past performance does not guarantee future results.*Based on monthly returns, since inception 12 December 2012, net of fees, in USD of the AB Low Volatility Equity Portfolio—Class I shares relative to the Morningstar EAA OE
Global Large Cap Blend Equity peer category
As of 30 September 2019
Source: Morningstar Direct, MSCI and AB
AB Low Volatility Equity Portfolio Overview
Equity Returns with a “Smoother Ride” Active Stock Selection
Comparison to Peers: Since Inception (Percentile)*
Number of Holdings 70–90
Active Share ~85%
Single Stock Limit Max 5%
Average Turnover 60%–80%
Long-Term Return Seeks to outperform equity markets over full cycle
Volatility Less than the market
Upside Capture 90%
Downside Capture 70%
Helps protect in down markets
Participates in up markets
Value
Time
Low Volatility Equity
Market
Tracking Error
3
97
2
0
25
50
75
100
Absolute Returns Downside Capture Sharpe Ratio
2|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
We Have Delivered Strong Absolute Performance and Provided the
Downside Protection People Need
Past performance does not guarantee future results.The value of investments and the income from them will vary. Your capital is at risk. Performance data are provided in the share class currency, and include the change in net asset
value and the reinvestment of any distributions paid on Portfolio shares for the period shown. Performance data are net of management fees, but do not reflect sales charges or the
effect of taxes. Returns for other share classes will vary due to different charges and expenses. The actual return achieved by investors in other base currencies may increase or
decrease as a result of currency fluctuations.
The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-year Morningstar Rating metrics.
Performance data of more than one year are annualized.
Inception date: AB Low Volatility Equity Portfolio—Class I shares: 12 December 2012
As of 30 September 2019.
Source: MSCI and AB
Equity Participation… (Annualized Returns)
In US Dollars (Net of Fees—I Shares)
…with Lower Risk (Annualized Volatility)
…with Strong Upside Capture (Up Months) …with Strong Downside Protection (Down Months)
11,3%9,7%
AB Low Volatility Equity Portfolio MSCI World
2,1% 2,4%
AB Low Volatility Equity Portfolio MSCI World
Upside Capture: 87%
9,0%11,0%
AB Low Volatility Equity Portfolio MSCI World
–1,8%
–3,0%AB Low Volatility Equity Portfolio MSCI World
Downside Capture: 62%
Overall Morningstar Rating–Class IRated against 3,620 funds in the Global Large Cap Blend
Equity category based on risk-adjusted returns
3|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
With MSCI World Loss Worse than 5% (Percent)
AB Low Volatility Equity Portfolio Seeks to Provide Downside Protection
Past performance does not guarantee future results. Inception date: AB Low Volatility Equity Portfolio Class I shares—12 December 2012. Performance data are net of
fees. The performance shown represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information
shown. You may obtain performance information current to the most recent month-end by visiting www.AllianceBernstein.com. 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. Returns for other share classes will vary due to different
charges and expenses. Performance assumes reinvestment of distributions and does not account for taxes. Fund returns for periods longer than one year are annualized.
As of 30 September, 2019
Source: MSCI and AB
Concerns on
Fed + QE
21 May 2013–
24 Jun 2013
Emerging Market
Concerns +
Weak Earnings
22 Jan 2014–
4 Feb 2014
Fed Discussion
on Interest Rate
Rise
3 Sep 2014–
16 Oct 2014
China’s
Economy +
Plummeting Oil
Price
1 Dec 2015–
11 Feb 2016
Greece + China
Stock Market
Crash
20 Jul 2015–
29 Sep 2015
Brexit
23 Jun 2016–
27 Jun 2016
Inflation + Fed
Tightening
26 Jan 2018–
23 Mar 2018
Average Downside Capture: 70%
–6,2–4,3
–6,1–8,0
–9,4
–3,8
–7,2
–15,4
–7,7–5,5
–8,9
–12,6–13,9
–7,1–9,1
–18,1
LVE MSCI World
Rising rates+
Slowing growth in
China & Europe
21 Sep 2018–
24 Dec 2018
4|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
Buying high-quality, stable
companies at the right price
can beat the market and
protect capital.
Philosophy
5|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
Focused on Quality Compounders Across Secular Themes
Holdings are subject to change.
References to specific securities are presented to illustrate the application of our investment philosophy only and are not to be considered recommendations by AB. Logos, brands
and other trademarks in this presentation are the property of their respective trademark holders. They are used for illustrative purposes only, and are not intended to convey any
endorsement or sponsorship by, or association or affiliation with, the trademark holders.
Representative holdings from AB Low Volatility Equity Portfolio
As of 30 September, 2019. Source: AB
Tech Enablers
Representative HoldingsTheme
Proprietary Data Providers
Human Resource Solutions
Innovative Pharmaceuticals
Electronic Payments
6|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
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Investment Team
Portfolio Managers
Advisory Members
Chris MarxSenior Portfolio Manager—Equities28 Years’ Experience
22 Years with AB
Nelson YuHead of QuantitativeResearch—Equities26 Years’ Experience
22 Years with AB
Joseph Gerard PaulCIO—North American Value Equities35 Years’ Experience
32 Years with AB
Kent HargisCo-Chief Investment Officer–
Strategic Core Equities
24 Yrs Experience
16 Yrs with AB
Sammy SuzukiCo-Chief Investment Officer–
Strategic Core Equities
26 Yrs Experience
25 Yrs with AB
Stuart RaeCIO-Asia Pacific Value Equities26 Years’ Experience
20 Years with AB
Collaborative Research Around the Globe
Hong Kong
Sydney
TokyoLondon
New YorkShanghai
Singapore
Chicago
Firm-Wide Equity Research
69 Fundamental Analysts 14 Quantitative Analysts
Global Fundamental and Quantitative Research Team
39 Fundamental Analysts* 10 Quantitative Analysts
*Fundamental analysts with assigned coverage for Low Volatility
As of 30 September, 2019
7|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
*ESG: environmental, social and governance
Source: AB
Investment Process Overview
Position portfolio to:
Balance return and risk
exposure
Mitigate unintended bets
Reflect current opportunities and
risks
Portfolio Construction
Assess undervalued sustainability
of profits based on:
Competitive advantage
Good capital stewardship
Favorable environment
ESG issues*
Rank securities based on risk-
adjusted return:
Quality
Stability
Price
Market cap >US$2 billion
Adequate liquidity
70–90
Stocks
~3,000
Stocks
Portfolio
Candidates
~200 Stocks
Investment Universe Quantitative Research Fundamental Research
Continuous dialogue between portfolio managers and analysts
Opportunity Set
~500 Stocks
8|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
Our Approach Balances Quality, Stability and PriceTo Identify Stocks with Superior Risk-Adjusted Return Potential
Quantitative Characteristics
Profitability and earnings quality are strong predictors of future earnings power
Capital discipline leads to better stock returns
Assessing incremental investment helps identify successful business models
Lottery and agency effects explain outperformance of low beta stocks with less
risk
Variation of profitability or market sensitivity help gauge stability
Changes in investors opinions presage future returns
Cash flow ultimately determines value
Dividends reflect management’s confidence in the sustainability of its earnings
power
Free Cash Flow ROA
Return On Invested Capital
Earnings Quality
Incremental ROIC
Asset Growth
Equity/Debt Issuance
Quality
Beta/Volatility of Beta
Idiosyncratic Volatility
Variation of Profitability
Price Momentum
Earnings Sentiment
Short Interest
Options Skew
Stability
Free
Cash Flow Yield
Dividend Yield
Price
Behavioural Insights
9|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
Past performance does not guarantee future results.These examples are provided for the sole purpose of illustrating how research can be used to help identify investable ideas in the portfolio-management process, and
is not to be considered a recommendation by AllianceBernstein L.P. It should not be assumed that investments in any specific security was or will be profitable. They do not
represent all of the securities purchased, sold or recommended for clients in this product. A listing of all recommendations made during the prior one-year period is available upon
request. Logos, brands and other trademarks in this presentation are the property of their respective trademark holders. They are used for illustrative purposes only, and are not
intended to convey any endorsement or sponsorship by, or association or affiliation with, the trademark holders.
As of 31 October, 2018
Source: AB
Fundamental Research Assesses Quality
Are
company’s
earnings
sustainable ?
Are
managers
good
stewards
of capital?
Volume Growth
New product launches will offset
generic competitors to major
franchises
Pipeline insufficient to offset generic
competition to existing major products
Valuation
Margins
Falling top-line with need to invest in
R&D; holding margins stable will be
very difficult
Expect to maintain industry-leading
margins due to continued top line
growth
Capital Efficiency
Excess cash goes to shareholders
Avoided major dilutive acquisitions
Consistently grows dividend
Pays down existing debt
Not acquisitive compared to peers
Own AvoidResult
Both companies are facing biosimilar (generic) competition for 2 -3 products that
comprise c.40% of total revenues
Attractively valued compared to peers
given continued top line growth; dividend
yield of 3.4%
Reasonably valued with a dividend
yield of 2.4%
Is the
company
attractively
valued?
10|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
QSP Results in Differentiated Positioning
Historical analysis does not guarantee future results. Holdings are subject to change. Weights by sector and region exclude cash and ETFs; numbers may not sum due
to rounding. Based on AB’s Global Strategic Core Equity Strategy. Sectors and country weights are subject to change. *Bond proxy sectors include: utilities, real estate and telecom
up to Q3 2018.
†From 30 September, 2018. Telecom renamed Communication Services on 30 September, 2018; media sector will move to the sector, as well as other additional companies.
As of 30 September 30, 2019
Source: MSCI and AB
Sector Weight
Percent
0
10
20
30
40
50
60
70
80
90
100
124Q
131Q
132Q
133Q
134Q
141Q
142Q
143Q
144Q
151Q
152Q
153Q
154Q
161Q
162Q
163Q
164Q
171Q
172Q
173Q
174Q
181Q
182Q
183Q
184Q
191Q
192Q
193Q
Technology
Consumer Discretionary
Industrials
Financials
Energy + Materials
Healthcare
Bond Proxies* Increased weight to traditional
defensive sector including stables
and bond proxies in this uncertain
environment
Overweight technology primarily
enablers in software and services,
with strong free cash flows,
satisfying business demand for
innovation
Underweight economically
sensitive sectors such as energy
and materials
Consumer Staples
Communication
Services†New†
11|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
Holdings are subject to change. References to specific securities discussed are not to be considered recommendations by AllianceBernstein L.P.
Logos, brands and other trademarks in this presentation are the property of their respective trademark holders. They are used for illustrative purposes only, and are not intended to
convey any endorsement or sponsorship by, or association or affiliation with, the trademark holders.
Absolute sector weights
As of 30 September, 2019
Source: MSCI and AB
Increased Traditional Defensive Sectors As Outlook Weakened
Absolute Weights by Sector
Percent
German Real Estate
0,6
1,6
7,9
1,8
3,2
10,3
Utilities Real Estate ConsumerStaples
Sep-18 Sep-19
US Consumer Staples
Adding to Stable Companies with Attractive Valuation
European Utility
12|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
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Stock Specific Risk in Current Environment
Well Positioned to Weather Trade Wars in Technology and Industrials
Holdings are subject to change. References to specific securities are presented to illustrate the application of our investment philosophy only and are
not to be considered recommendations by AB.Logos, brands and other trademarks in this presentation are the property of their respective trademark holders. They are used for illustrative purposes only, and are not intended to
convey any endorsement or sponsorship by, or association or affiliation with, the trademark holders.
As of September 30, 2019
Source: Factset, MSCI and AB
Overweight Technology, but Underweight the Most
Exposed Industries: Representative Holdings
Software and Services Semis and Hardware
Percent of Portfolio:
18.4%
vs. MSCI World
+9.6%
Percent of Portfolio:
2.9%
vs. MSCI World
(4.8)%
Underweight the Most Exposed Industries within
Industrials: Representative Holdings
Services
Percent of Portfolio:
4.1%
vs. MSCI World
+1.4%
Percent of Portfolio:
2.7%
vs. MSCI World
(4.9)%
Goods and Autos
13|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
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Total Returns, Class I Shares (USD)
AB Low Volatility Equity Portfolio
Periods Ended 30 September, 2019
3Q
2019
YTD
2019
One
Year
Three
Years
Five
Years
Since
Inception
AB Low Volatility Equity
Portfolio2.0% 18.7% 5.2% 10.7% 9.1% 11.3%
MSCI World Index 0.5 17.6 1.8 10.2 7.2 9.7
Relative Performance 1.5 1.1 3.4 0.5 1.9 1.6
Past performance does not guarantee future results.Numbers may not sum due to rounding.
The value of investments and the income from them will vary. Your capital is at risk. Performance data are provided in the share class currency, and include the change in net asset
value and the reinvestment of any distributions paid on Portfolio shares for the period shown. Performance data are net of management fees, but do not reflect sales charges or the
effect of taxes. Returns for other share classes will vary due to different charges and expenses. The actual return achieved by investors in other base currencies may increase or
decrease as a result of currency fluctuations.
The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-year Morningstar Rating metrics. Performance
data of more than one year are annualized.
Inception date: AB Low Volatility Equity Portfolio Class I shares—12 December 2012
As of 30 September, 2019
Source: Morningstar Direct, MSCI and AB; see Performance Disclosure.
Rated against 3,620 funds in the
Global Large Cap Blend Equity
category based on risk-adjusted
returns
Overall Morningstar Rating–Class I
14|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
Holdings are subject to change.
Current relative weights by sector and region excludes cash; numbers may not sum due to rounding.
Based on the AB Low Volatility Equity Portfolio
*Relative weight against the MSCI World
As of September 30, 2019
Source: MSCI and AB
Portfolio Characteristics
Current Weights by Region* (Percent)Current Weights by Sector* (Percent)
Sector Portfolio Active Weight
Technology 22.5
Financials 19.0
Consumer Staples 10.3
Consumer Discretionary 11.8
Real Estate 3.2
Healthcare 12.0
Energy 3.9
Utilities 1.8
Communication Services 6.6
Industrials 9.0
Materials —
Total 100.0
(4,4)
(2,1)
(1,8)
(1,8)
(1,3)
(0,4)
(0,2)
1,2
1,5
3,3
6,0
Region Portfolio Active Weight
EMEA 25.6
UK 8.6
Asia Pacific 11.2
North America 54.6
Total 100.0
(12,0)
(1,0)
3,2
11,1
15|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
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Portfolio Characteristics
Seeks to Deliver High Quality and Stability at an Attractive Price
Higher Quality
Return on Assets*
Attractive Price
Price/Free Cash Flow*
Stability
Beta*
Past performance does not guarantee future results.Based on AB’s Low Volatility Equity Portfolio
Beta is a measure of an investment’s sensitivity to the market as a whole. A beta below 1 indicates lower sensitivity to the market; a higher beta indicates higher sensitivity.
*Represents factor explicitly used in a proprietary expected-excess-return model; return on assets calculated as free cash flow divided by tangible assets
As of 30 September, 2019
Source: MSCI and AB
12,1%
9,8%
AB Low VolatilityEquity
MSCI World
0.77
1,0
AB Low VolatilityEquity
MSCI World
19,7×
21,9×
AB Low VolatilityEquity
MSCI World
16|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
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APPENDIX
17|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
ESG Integration Process
Source: AB
Legal risks
Regulatory risks
Risks of increased compliance costs
Risks of losing customers
Incorporate assessment of ESG factors
into evaluation of investment risk
Continuous re-assessment of ESG risks
Fundamental Analysis Portfolio Construction
All securities undergo ESG analysis
based on some quantitative providers
of ESG analysis
Low rated securities undergo more
stringent vetting
Quantitative Analysis
E S G
18|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
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Attribution
1 Year vs. MSCI World
Past performance and current analysis do not guarantee future results. Performance is gross of fees. Based on the AB’s Low Volatility Equity Portfolio. This is supplemental information to the GIPS-compliant performance and disclosure page. Numbers
may not sum due to rounding. The returns presented above are gross of fees. The results do not reflect the deduction of investment-management fees; the client’s return will be
reduced by the management fees and any other expenses incurred in the management of its account. For example, a US$100 million account paying a 0.50% annual fee with a
given rate of 10% compounded over a 10-year period would result in a net-of-fee return of 9.5%. Investment advisory fees are described in Part 2A of AB’s Form ADV.
As of 30 September, 2019
Source: MSCI and AB; see Performance Disclosure and Disclosures and Important Information.
Largest Contributors
Largest Detractors
Stock Sector Attribution
Booz Allen Hamilton Technology +51
NICE Systems Technology +46
Roche Healthcare +39
Dollar General Consumer Discretionary +35
RELX Group Industrials +28
Stock Sector Attribution
Imperial Brands Consumer Staples (25)
Raytheon Industrials (23)
Nestlé Consumer Staples (23)
Check Point Software Technology (21)
Gilead Sciences Healthcare (20)
Relative Performance (Basis Points)
5
445
(16)Currency SelectionSector Selection
Stock and Sector Selection Attribution (Basis Points)
160 139
107 63
50 50
14 (10)
(24)(37)
(47)
Consumer DiscretionaryTechnology
IndustrialsEnergy
FinancialsCommunication Services
Healthcare
435
Materials
UtilitiesConsumer Staples
Stock Selection
Real Estate
19|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
Past performance does not guarantee future results.Numbers may not sum due to rounding.
The value of investments and the income from them will vary. Your capital is at risk. Performance data are provided in the share class currency, and include the change in net asset
value and the reinvestment of any distributions paid on Portfolio shares for the period shown. Performance data are net of management fees, but do not reflect sales charges or the
effect of taxes. Returns for other share classes will vary due to different charges and expenses. The actual return achieved by investors in other base currencies may increase or
decrease as a result of currency fluctuations.
*Inception date: AB Low Volatility Equity Portfolio Class I shares—12 December 2012
As of 30 September, 2019
Source: Morningstar Direct, MSCI and AB
Underperformance
in an up market
Underperformance
in a down market
Outperformance
in a down market
Outperformance
in an up market
Rolling 12-Months over Last Five Years
AB Low Volatility Equity Protects on the Downside, Participates on the Upside
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
-30% -20% -10% 0% 10% 20% 30%
Rela
tive
Re
turn
MSCI World
AB Low Volatility Equity
20|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
DISCLOSURES
21|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
A Word About Risk
Investment in the Fund entails certain risks. Investment returns and principal value of the Fund will fluctuate so that an investor’s shares, when redeemed, may
be worth more or less than their original cost. The Fund is meant as a vehicle for diversification and does not represent a complete investment program. Some of
the principal risks of investing in the Fund include emerging-market risk, portfolio turnover risk, smaller capitalisation companies risk, derivatives risk, OTC
derivatives counterparties risk and equity securities risk. These and other risks are described in the Fund’s prospectus. Prospective investors should read the
prospectus carefully and discuss risk and the Fund’s fees and charges with their financial adviser to determine if the investment is appropriate for them.
This information is directed at Investment Professionals only and should not be relied upon by any other persons. It is provided for informational purposes only
and is not intended to be an offer or solicitation, or the basis for any contract to purchase or sell any security, product or other instrument, or to enter into any type
of transaction as a consequence of any information contained herein. The views and opinions expressed in this document are based on our internal forecasts and
should not be relied upon as an indication of future market performance.
References to specific securities are presented to illustrate the application of our investment philosophy only and are not to be considered recommendations by
AB. The specific securities identified and described in this presentation do not represent all of the securities purchased, sold or recommended for the portfolio, and
it should not be assumed that investments in the securities identified were or will be profitable.
The value of an investment in the Fund can go down as well as up, and investors may not get back the full amount they invested. Before investing in
the Fund, investors should review the Fund’s full prospectus, together with the Fund’s Key Investor Information Document and the most recent
financial statements. Copies of these documents, including the latest annual report and, if issued thereafter, the latest semiannual report, may be
obtained free of charge by visiting www.alliancebernstein.com or by contacting the local distributor in the jurisdictions in which the Fund is
authorized for distribution, or in the case of Swiss investors, from the registered office of the Swiss representative.
22|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
Important InformationAn investor cannot invest directly in an index or average, and these do not include the sales charges or operating expenses associated with an investment in a mutual fund, which
would reduce total returns.
MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not
be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI.
Logos, brands and other trademarks in this presentation are the property of their respective trademark holders. They are used to illustrate a portion of the holdings of a sample
portfolio at a point in time. Holdings are subject to change.
Alpha, often considered the active return on an investment, gauges the performance of an investment against the market and is used as a measure of manager skill.
Beta is a measure of an investment’s sensitivity to the market as a whole. A beta below 1 indicates lower sensitivity to the market; a higher beta indicates higher sensitivity.
Note to Canadian Readers: AllianceBernstein provides its investment-management services in Canada through its affiliates Sanford C. Bernstein & Co., LLC and
AllianceBernstein Canada, Inc.
Note to European Readers: This information is issued by AllianceBernstein Limited, 50 Berkeley Street, London W1J 8HA, it is for marketing purposes. Registered in England,
No. 2551144. AllianceBernstein Limited is authorised and regulated in the UK by the Financial Conduct Authority (FCA).
Note to Austrian and German Readers: Local paying and information agents: Austria—UniCredit Bank, Austria AG, Schottengasse 6-8, 1010 Vienna; Germany—BHF-Bank
Aktiengesellschaft, Bockenheimer Landstrasse 10, 60323 Frankfurt am Main.
Note to Liechtenstein Readers: The Fund is not registered for public distribution in Liechtenstein and, accordingly, shares may only be offered to a limited group of Professional
Investors, in all cases and under all circumstances designed to preclude a public solicitation in Liechtenstein. This document may not be reproduced or used for any other purpose,
nor be furnished to any other person other than those to whom copies have personally been sent by AB. Neither the Fund nor the shares described therein have been subject to
the review and supervision of the Liechtenstein Financial Market Authority.
Note to Swiss Readers: This document is issued by AllianceBernstein Schweiz AG, Zürich, a company registered in Switzerland under company number CHE-306.220.501.
AllianceBernstein Schweiz AG is authorised and regulated in Switzerland by the Swiss Financial Market Supervisory Authority (FINMA) as a distributor of collective investment
schemes. Swiss Representative & Swiss Paying Agent: BNP Paribas Securities Services, Paris, succursale de Zürich. Registered office: Selnaustrasse 16, 8002 Zürich,
Switzerland, which is also the place of performance and the place of jurisdiction for any litigation in relation to the distribution of shares in Switzerland. The Prospectus, the key
investor information documents, the Articles or management regulations and the annual and semiannual reports of the concerned fund may be requested without cost at the offices
of the Swiss representative.
Note to Hong Kong Readers: This document is issued in Hong Kong by AllianceBernstein Hong Kong Limited (聯博香港有限公司), a licensed entity regulated by the Hong Kong
Securities and Futures Commission. This document has not been reviewed by the Hong Kong Securities and Futures Commission.
Note to Singapore Readers: This document has been issued by AllianceBernstein (Singapore) Ltd. (“ABSL”, Company Registration No. 199703364C). AllianceBernstein
(Luxembourg) S.à r.l. is the management company of the portfolio and has appointed ABSL as its agent for service of process and as its Singapore representative.
AllianceBernstein (Singapore) Ltd. is regulated by the Monetary Authority of Singapore. This advertisement has not been reviewed by the Monetary Authority of Singapore.
Past performance is no guarantee of future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-
Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis
on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3
stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may
cause slight variations in the distribution percentages.) For the three-year period, the Fund was rated 5 stars against 2,771 funds in the category. Morningstar Rating is for the I and
A Share Classes.
23|AB Low Volatility Equity Portfolio 3Q19For Investment Professional use only.
Not for inspection by, distribution or quotation to, the general public.
Global Strategic Core Equity Composite (in US Dollar)
Performance Disclosure
The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein® is a registered service mark used by permission of the owner, AllianceBernstein L.P.
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