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AB Euro Corporate Bond Portfolio


A Systematic Approach to Fixed Income

 

A strategy designed for investors looking for investment opportunities in Euro denominated corporate bonds, that are uncorrelated with traditional strategies.

Quantitative
  • An actively managed portfolio using quantitative research focusing on the analysis of individual securities rather than market conditions
     
Repeatable
  • Utilizes a dynamic multifactor approach to repeatedly and consistently identify securities with attractive future risk-adjusted return potential
Uncorrelated
  • A systematic strategy that seeks to deliver active returns that have a low correlation to traditional strategies, helping to enhance portfolio diversification  

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.

An Experienced Team

Our Portfolio Managers are backed by a dedicated team of quantitative research analysts with over 20 years of experience. We combine seasoned fixed income professionals with a data-driven approach, ensuring robust execution and alpha generation. In addition to leveraging AB’s proprietary fixed income technology, the team utilizes abAlphaLabs, a quantitative research platform that provides infrastructure for scalable and robust factor testing.

6 Years at AB
26 Years of Experience
25 Years at AB
31 Years of Experience
13 Years at AB
13 Years of Experience

Pricing & Performance

  1. Annualised Performance
  2. Calendar Year Performance
  3. Complete 12 Month Returns
  4. Growth of Investment
  5. Daily Data

Past performance does not guarantee future results.

The Fund is not managed to target or exceed the performance of any specific benchmark, nor are investment decisions constrained by any benchmark. However, investors can assess the performance of the Fund against index shown.

The display above shows the performance based on total return net of management fees, but does not reflect sales charges or the effect of taxes. The figures therefore do not reflect the actual return to an investor.

The charges paid by the Fund are used to pay the costs for running the Fund, including the costs of marketing and distributing it. These charges reduce the potential return of your investment.  For a complete description and full details of the applicable costs and charges, please refer to the Fund’s Prospectus.

The Management Fee is an annual fee paid to the management company to which the management of the Fund has been delegated. Out of this fee, the management company pays the investment management fee to the Investment Manager but also may pay other service providers.

The Performance Fee (if any) is paid to the Investment Manager under certain specific conditions.

The Ongoing Charges are charges taken from the Fund over a year based on expenses for the year. This figure may vary from year to year. It excludes performance fees (if any), portfolio transaction costs, except in the case of an entry/exit charge paid by the Fund, when buying or selling units in another collective investment undertaking. The Ongoing Charges figure can help you compare the annual operating expenses of different funds.

The Entry and Exit Charges shown are maximum figures and are one-off charges taken before or after you invest in the Fund. 


Complete Portfolio of Holdings

Holdings are subject to change without notice.



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:

  • Convertible securities risk: As convertible securities are structured as bonds that typically can, or must, be repaid with a predetermined quantity of equity shares, rather than cash, they carry both equity risk and the credit and default risks typical of bonds.

  • 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.

  • Debt securities risk: The value of most bonds and other debt securities will rise when interest rates fall and will fall when interest rates rise. A bond or money market instrument could fall in price and become more volatile and less liquid if the security’s credit rating or the issuer’s financial health deteriorates, or the market believes it might. Debt securities carry interest rate risk, credit risk and default risk.

  • 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.

  • Hedging risk: Hedging may be used when managing the Fund, as well as for currency hedge share classes to eliminate the potential for gains along with the risk for loss. Measures designed to offset specific risks may work imperfectly, may not be feasible at times or may fail completely. As there is no segregation of liabilities between the share classes, there is a remote risk that, under certain circumstances, currency hedging transactions could result in liabilities with might affect the NAV of the other share classes and their assets may be used to cover those liabilities incurred.

  • Leverage risk: The Fund implements a high use of leverage which may reach 400% of the total NAV of the Fund. Leverage presents opportunities for increasing both returns and losses because any event which affects the value of an investment is magnified to the extent leverage is employed.

  • Market risk: Prices and yields of many securities can change frequently, sometimes with significant volatility, and can fall, based on a wide variety of factors, for example government policy or change in technology. he effects of market risk can be immediate or gradual, short-term or long-term, or narrow or broad.

  • 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.

  • Sustainability risk: Sustainability risk means an environmental, social, or governance event or condition that, if it occurs, could potentially or actually cause a material negative impact on the value of a Portfolio’s investment. Sustainability risks may have an impact on long-term risk adjusted returns for investors. Assessment of sustainability risks is complex and may be based on environmental, social, or governance data which is difficult to obtain and incomplete, estimated, out of date or otherwise materially inaccurate. Even when identified, there can be no guarantee that these data will be correctly assessed.

  • Systematic/Quantitative Model Risk: Proprietary quantitative models may be used for the purposes of selection, weighting and allocation of assets. The research and modelling process is complex and may contain design flaws or erroneous assumptions. The model may not work as intended and might not enable a Portfolio to achieve its investment objective. Certain models may be constructed using data from external data providers, potentially limiting the effectiveness of the models. In extremely volatile or illiquid market conditions it may be difficult to implement recommendations generated by the model.



Fund Literature