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Objective

The Portfolio seeks to increase the value of your investment over time through capital growth.

In actively managing the Portfolio, the Investment Manager invests in equity securities that it believes align with and are positively exposed to China’s policies to transition towards a net zero carbon economy, these equity securities being “China Net Zero Solutions”. The Investment Manager employs a combination of “top-down” and “bottom-up” investment processes. For the “top-down” approach, the Investment Manager identifies opportunities that it believes will arise as a result of these policies. For the “bottom-up” approach, the Investment Manager analyses individual Chinese issuers focusing on the ones it believes will contribute to these policies based on, inter alia, specific growth and business characteristics. The Investment Manager uses fundamental research to build a comparatively concentrated, high conviction portfolio of securities of issuers (typically 30-50 companies) that the Investment Manager believes are of high quality and have superior long-term growth characteristics. Under normal market conditions, the Portfolio typically invests at least 80% of its assets in equity securities that the Investment Manager believes are China Net Zero Solutions. The issuers of China Net Zero Solutions are organised or have substantial business activities in China and may be of any market capitalisation and industry. The Portfolio may invest in all markets on which these equity securities are traded, such as China Connect Scheme markets for China A-shares and offshore markets for H-shares, as well as other equity markets including those in the US, Hong Kong, the United Kingdom, Singapore, Korea and Taiwan. The Portfolio may also invest in China through the QFI Scheme. The Portfolio’s investments may also include securities such as convertible securities, depositary receipts, REITs and ETFs. The Portfolio may be exposed to any currency.

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:

  • China Connect Scheme Risk: The Portfolio may invest directly or indirectly in China Connect Securities through the China Connect Scheme, including investment in financial instruments and other market access products linked to China Connect Securities. Under the China Connect Scheme, the Shanghai Connect and the Shenzhen Connect operate independently from each other although subject to substantially similar regulatory framework and The Stock Exchange of Hong Kong Limited is subject to potential suspension of trading to ensure an orderly and fair market. As the China Connect Scheme is relatively new, it remains not fully developed, the rules governing it and trading are subject to changes and the availability of securities and products may fluctuate. Accordingly, trading on the China Connect Scheme has additional risks such as liquidity, counterparty and best execution. Additionally, the various rights of the Portfolio associated with investing in China Connect Securities are still undefined and may differ from more developed markets.

  • Concentration/Focus Risk: To the extent that the Portfolio invests a large portion of its assets in a limited number of industries, sectors or issuers, or within a limited geographical area, it can be riskier and subject to greater volatility than a Portfolio that invests more broadly. A concentrated or focused Portfolio will, by definition, be more sensitive to the factors that determine market value for the area of focus. These factors may include economic, financial or market conditions as well as social, political, economic, environmental or other factors.

  • Country Risk - China: The legal rights of investors in China are uncertain, government intervention is common and unpredictable, investors from outside China are subject to holding limits and reporting requirements (which could change at any time without notice) and some major trading and custody systems are unproven. Investments in China are also subject to Emerging Markets risks. In China, it is uncertain whether a court would protect the Portfolio’s rights to securities it may purchase, including the right to take legal action, via a FII license, the China Connect Scheme, or other methods whose regulations are untested and subject to change. The China regulatory, legal and tax framework for capital markets may not be as well developed as developed countries and changes to law, regulations and tax legislation could affect the Portfolio’s investment in China. Additionally, there may be less publicly available information of Chinese companies and such information may be less reliable as Chinese companies are subject to accounting standard that differ in significant respect to those companies established in developed countries. As such, the lower levels of disclosure and transparency may impact the value of investments in China.

  • Derivatives Risk: The portfolio may invest in financial derivative instruments for investment purposes in addition to hedging and/or efficient portfolio management purposes and hence this may lead to a higher volatility to the net asset value of the Portfolio. 

  • 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.

  • 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 the Portfolio’s investment. Sustainability risks can either represent a risk of their own or have an impact on other risks, and may contribute significantly to risks, such as market risks, operational risks, liquidity risks or counterparty risks. 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.

Fund Literature

Investment in the Fund entails certain risks. Past performance does not guarantee future results. The value of an investment in the Fund can go down as well as up and investors may not get back the full amount invested. This information is directed solely at persons in jurisdictions where the funds and relevant share class are registered or who may otherwise lawfully receive it. Before investing in AllianceBernstein funds, investors should review the fund’s full prospectus, together with the fund’s Product Highlights Sheet and the most recent financial statements. Copies of these documents, including the latest annual report and, if issued thereafter, the latest semi-annual report, may be obtained free of charge from www.abfunds.com / www.alliancebernstein.com or by contacting the local distributor in the jurisdictions in which the funds are authorized for distribution.

The Portfolio is part of AB SICAV I (referred to as “AB”). AB is an open-ended investment company with variable capital (société d’investissement à capital variable) under the laws of the Grand Duchy of Luxembourg.

The Portfolio may invest in financial derivative instruments for investment purposes in addition to hedging and/or efficient portfolio management purposes and hence this may lead to a higher volatility to the net asset value of the Portfolio.

Dividends are not paid for all share classes and are not guaranteed.

Please note that dividend distribution is at the discretion of The Board of Director (“Board”) and subject to the dividend policy referred in the Singapore Offering Document. It is dependent on prevailing market conditions and the income generated by the underlying securities of the fund. Any payments of distributions by the portfolio may result in an immediate reduction of the net asset value per share/unit. A high distribution yield does not imply a high return on the fund. Investors should not make any investment decision solely based on dividend information provided.

Currency-hedged share classes (indicated above by a currency denomination and an “H” in the Class name) use hedging techniques in an attempt to reduce—but not eliminate—fluctuations between the investor’s holdings in a particular currency-hedged share class denominated in the investor’s investing currency and the portfolio’s base currency. The goal is to deliver returns that track the portfolio’s base currency returns more closely. 

AllianceBernstein funds are offered only by the offering document with respect to each fund. The sale of shares of AB funds may be restricted in certain jurisdictions. In particular, shares may not be offered or sold, directly or indirectly, in the United States or to U.S. persons, as is more fully described in the Offering Document with respect to each Fund. Shares of AB funds are offered only pursuant to the Fund’s current Offering Document together with the most recent financial statements. The information on this page is for information purposes only and should not be construed as an offer to sell, or solicitation to buy, or a recommendation for the securities of any AB fund.

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AllianceBernstein (Luxembourg) S.à.r.l. is the management company of the Portfolios and has appointed AllianceBernstein (Singapore) Ltd. (Company Registration No. 199703364C) as its agent for service of process and as its Singapore representative. AllianceBernstein (Singapore) Ltd. is regulated by the Monetary Authority of Singapore. This advertisment has not been reviewed by the Monetary Authority of Singapore.

The information contained here reflects the views of AllianceBernstein L.P. or its affiliates and sources it believes are reliable as of the date of this publication. AllianceBernstein L.P. makes no representations or warranties concerning the accuracy of any data. There is no guarantee that any projection, forecast or opinion in this material will be realized. Past performance does not guarantee future results. The views expressed here may change at any time after the date of this publication.  This document is for informational purposes only and does not constitute investment advice.

AllianceBernstein L.P. does not provide tax, legal or accounting advice. It does not take an investor’s personal investment objectives or financial situation into account; investors should discuss their individual circumstances with appropriate professionals before making any decisions. This information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service sponsored by AllianceBernstein or its affiliates.

The contents of this site are general in nature, for general information only and prepared without consideration given to the specific investment objective, financial situation and particular needs of any specific person. This site contains the views and opinions of particular individuals and may not necessarily represent views expressed or reflected in other AB communications, strategies or funds. Reliance should not be placed on these views and information when making individual investment and/or strategic decisions.

Past performance, historical and current analyses, and expectations do not guarantee future results.

Investment involves risk. The information contained here reflects the views of AllianceBernstein L.P. or its affiliates and sources it believes are reliable as of the date of this publication. AllianceBernstein L.P. makes no representations or warranties concerning the accuracy of any data. There is no guarantee that any projection, forecast or opinion in this material will be realized. Past performance does not guarantee future results. The views expressed here may change at any time after the date of this publication.  This document is for informational purposes only and does not constitute investment advice.  AllianceBernsteinL.P. does not provide tax, legal or accounting advice. It does not take an investor’s personal investment objectives or financial situation into account; investors should discuss their individual circumstances with appropriate professionals before making any decisions. This information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service sponsored by AllianceBernstein or its affiliates.

The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams.

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