Institutional Solutions

Partnering with Institutional Investors in Pursuit of Better Outcomes

Our sophisticated strategic asset-allocation research, analytics and solutions empower institutional investors to design better portfolios and—ultimately—help achieve better outcomes

Partnering with Clients

Strategic Insights

Distinctive perspectives that help institutional investors navigate a dynamic landscape, including:

The capital market outlook
Portfolio design implications
Industry changes & evolution

Analytics

Quantitative tools to enable the modelling of strategic trends and inform portfolio construction decisions:

AB Capital Markets Engine
Alphalytics
AB Robust Optimizer

Solutions

Effective client solutions delivered through a diverse array of implementations, including:

Model portfolios
Outcome-oriented Pooled Portfolios
Custom strategies

Strategic Insights

The Book for 2024: A Preliminary Language for a Post-Global World

This book sets out what we see as the key issues facing asset owners in the macro environment, and shares the outlook for capital markets, strategic allocation and the future of the investment industry. It will also explore how the next ten years are likely to be very different from the 1980–2020 period.

Learn More

IJF_Book_Overall_FINAL

Video Player is loading.

Current Time 0:00

Duration 0:00

Loaded: 0%

Stream Type LIVE

Remaining Time 0:00

View All Solutions' Insights

Analytics

Asset Allocation Investment Models and Tools

Our tools provide differentiated perspectives and insights to support asset allocators.

Capital Markets Engine

Review Assumptions and Asset Allocation

Strategic asset allocation modeler that:

Performs simulations over horizons up to 50 years and across 10,000 different economic scenarios
Builds forecasts by modeling the underlying building blocks that help to drive return, including economic (e.g. inflation) and capital market factors (e.g. book-to-price)
Models various strategic portfolio designs to compare expected outcomes
Allows testing of new exposures and adjustment of strategic portfolio designs as long-term capital market conditions evolve

Alphalytics

Review Manager Alpha/Factor Composition

Assesses Idiosyncratic Alpha to:

Identify active strategies offering non-replicable returns that are “worth” their fee
Select managers most likely to outperform, with higher “hit rates” than those chosen on historical returns
Understand each manager’s true factor exposures and identify those that consistently deliver required style tilts
Combine managers effectively, boosting expected return by managing aggregate holdings factor exposures and using idiosyncratic alpha at the fund level

Robust Optimizer

Optimize for a More Effective Portfolio

Asset allocation optimization tool that:

Translates our evolving capital market assumptions (strategic and tactical) into asset allocation outputs
Has the flexibility to incorporate specific client objectives and preferences in the construction of asset allocation
Creates holistic investment solutions that incorporate a full range of return streams, including broad asset class betas, factors and active alpha streams

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. There is no guarantee that any investment objectives will be achieved.

Solutions

Case Study: Partnering to Build a Managed Equity Solution

Collaborative analysis and engagement with a sovereign wealth fund.

Client Problem
Client Consultation
Partner to Build Solution

Client Problem

Client allocates to 7 different active equity managers
Believes in active security selection alpha and giving managers freedom to achieve objectives
Not only should each manager demonstrate skill, they should offer lower correlations and diversification with each other

Client is Seeking…

Differentiated sources of security selection alpha
Can enhanced macro-level management lead to better outcomes?

Analysis of client’s portfolio using Alphalytics to measure:

Excess Returns
Strategy Correlations
Factor Exposures

Factor Return Contributions
Risk Characteristics
Alpha Characteristics

Partner to Build Solution

We partner across AB to access differentiated investment capabilities and return sources to build client solution
Proprietary tools and research provide a holistic view of client’s total portfolio. Our solution is updated to adjust managers, tilt factor & thematic exposures and retain complementary characteristics

Multi-Sleeve Managed Equity Solution:

Optimal Alpha—Optimized (for diversification) sleeve allocates to the strongest AB idiosyncratic alpha sources
Thematic Opportunities—Allocates to emerging and attractive investment themes
Tactical/Completion—Flexible and dynamic sleeve reflects changes in the attractiveness of different factors and equity regions. It also directly considers of the client’s wider equity portfolio.

The Institutional Solutions Team

Inigo Fraser Jenkins
Investment Strategist

Alla Harmsworth
Investment Strategist

Robertas Stancickas
Senior Research Associate

Research Library

Research Papers
Strategic Investment Outlook