global core equity strategy contribution...global core equity strategy june 8, 2020 this document is...

GLOBAL CORE EQUITY STRATEGY

June 8, 2020

This document is issued by AllianceBernstein L.P. and approved 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 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 is no guarantee of future returns. This document is not intended for public use.

For Investment Professional use only. Not for inspection by, distribution or quotation to, the general public.

Klaus Ingemann, CFA - Co-Chief Investment Officer – Global Core Equity Craig T. Schorr, CFA, CAIA, CFP® Managing Director – Public FundsAnn Parker Weeden Vice President – Public Funds

1|Global Core EquityFor Investment Professional use only. Not for inspection by, distribution or quotation to, the general public.

ESG: environmental, social and governance†Principles for Responsible InvestmentAs of March 31, 2020. Source: AB

Committed to Delivering Better Investment Outcomes for Our ClientsDiverse Perspectives Lead to Differentiated Insights and Innovative Solutions

Fostering Diverse PerspectivesOur culture engages people with different backgrounds, viewpoints and ways of thinking, bringing out the best in our firm—and for our clients.

Serving Clients with Our Global Reach and Integrated Network 50+ years of experience in investment

management

$542 billion in solutions for investors ranging from individuals to the world’s largest institutions

An on-the-ground presence in 51 cities across 25 countries

139 portfolio managers and 187 research analysts

PRI† signatory since 2011

Generating Differentiated InsightsWe integrate diverse perspectives and broad expertise, collaborating across disciplines and ESG investing. This helps us break down silos and deliver investment clarity.

Embracing InnovationWe challenge convention by applying new information sources and disruptive technology to advance our capabilities and the ways we serve clients.


AB Global Core Equity Overview

Past performance does not guarantee future results. Source: AB

Strategy Active, Core Portfolio seeking attractively valued companies using a cash flow–based approach Combines high-conviction stock picking and diversification to form a portfolio of ~60 stocks

Portfolio Construction

Along with stock picking, quantitative tools measure and help control factor exposures Common sense and experience drive decision making—consensus amongst investment board

Stock Selection Process

Majority of risk-taking is stock specific—classic fundamental approach Qualitative company research combined with cash-based valuation

Seek out long-term, sustainable profit growth at the right prices

Disciplined and repeatable process applies well to all industries, regions and styles

Team Dedicated Investment Board and analyst team have worked together for over a decade In joining AB, the Global Core team is able to leverage the firm’s broader capabilities while

allowing them to focus on investment research and portfolio management

Performance Consistent outperformance versus broad global markets over time and across market cycles

Goal: Generate Premium to Broad Market, Driven by Bottom-Up Stock Selection


USD, PercentOur Portfolio of Value Creators Has Been Resilient in Down Markets

Past performance does not guarantee future results. Data are preliminary.Composite inception July 1, 2011. Gross of fees. The previous history performance refers to a strategy started at BankInvest, an investment manager based in Denmark, in 1989. David Dalgas, Head of AB Global Core Equities was responsible for this Strategy beginning January 1, 2004, along with Klaus Ingemann. On March 31, 2010, these individuals left BankInvest and started their own company, CPH Capital. Performance of the Strategy resumed on July 1, 2011, which is the start date of the composite. AB acquired CPH Capital in June 2014. Periods of more than one year are annualized. This is supplemental information to the GIPS-compliant performance and disclosure page. 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 March 31, 2020. Source: BankInvest Basis, MSCI and AB; see Important Information and Performance Disclosure.

Outperformancein a down market

Underperformancein a down market

Underperformancein an up market

Outperformancein an up market

(15)

(10)

(5)

0

5

10

15

(75) (60) (45) (30) (15) 0 15 30 45 60 75

Exce

ss R

etur

n (R

ollin

g 12

-Mon

ths)

Index Return (Rolling 12-Month Periods)

Previous History Composite Current


Global Core Equities: Our Philosophy

ACTIVE STOCKSELECTION

Long-term & cashflow focused stock picking

results in strong returns over time

CORE PORTFOLIO

Minimizing unintended factor & style risks

produces consistent results over time

+


AB Global Core Equity Investment Team

Please see team biographies for further details.*Per La Cour is based in New York.†Thomas Skovbjerg worked with the team from 2000 to 2007 and rejoined the team in 2016.As of March 31, 2020

Per la CourSenior Research Analyst

16 Years with Team21 Years in Industry

Consumer Discretionary& Consumer Staples*

Thomas Christensen, CAIA, CQF

Senior Quantitative Analyst15 Years with Team16 Years in Industry

Klaus Ingemann, CFACo-CIO


Healthcare, Technology & Communication Services

David Dalgas, CFACo-CIO


Generalist

Rasmus Lee Hansen, CFAPortfolio Manager and

Senior Research Analyst16 Years with Team16 Years in Industry

Financials & Real Estate

Investment Board

Thomas Skovbjerg, CFASenior Research Analyst

11 years with Team†

22 Years in IndustryEnergy, Industrials, Materials & Utilities


A Long History of Delivering Consistent Outperformance for Clients

Past performance does not guarantee future results. Data are preliminary.The previous history performance refers to a strategy started at BankInvest, an investment manager based in Denmark, in 1989. David Dalgas was responsible for this strategy beginning January 1, 2004, along with Klaus Ingemann. On March 31, 2010, these individuals left BankInvest and started their own company, CPH Capital. Performance of the strategy resumed on July 1, 2011, which is the start date of the composite. AB acquired CPH Capital in June 2014. Periods of more than one year are annualized. This is supplemental information to the GIPS-compliant performance and disclosure page. 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.Composite inception July 1, 2011. Gross of feesAs of March 31, 2020Source: BankInvest, MSCI and AB; see Important Information and Performance Disclosure.

Cumulative Excess Returns in USD

Previous History Composite

Relative Return +3.9%

Tracking Error 3.4%

Information Ratio 1.1

Relative Return +2.8%

Tracking Error 3.2%

Information Ratio 0.9

0

10

20

30

40

2004 2005 2006 2007 2008 2009 2010

Perc

ent

(5)

0

5

10

15

20

25

30

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Perc

ent


Past performance does not guarantee future results. Data are preliminary. Data shown are gross of fees.Periods of more than one year are annualized. Numbers may not sum due to rounding. Past performance is no guarantee of future results. This is supplemental information to the GIPS-compliant performance and disclosure page. 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. Inception dates: Global Core Equity—June 30, 2011Source: MSCI and AB; see Performance Disclosure.

In USDAB Global Core Equity: Performance Summary

Periods Ended March 31, 2020

1Q 2020

OneYear

ThreeYears

FiveYears

SinceInception

Global Core Equity (20.7)% (9.4)% 4.5% 5.3% 7.9%

MSCI ACWI (21.4) (11.3) 1.5 2.8 5.1

Relative Performance +0.7% +1.9% +3.0% +2.5% +2.8%

Periods Ended May 31, 2020

April 2020

May 2020

2Q 2020

SinceInception

Global Core Equity 10.9% 2.9% 14.2% 9.4%

MSCI ACWI 10.7 4.3 15.5 6.7

Relative Performance +0.2% (1.4)% (1.3)% +2.7%


Investment Process Overview

Review best ideas Unanimous board decision Emphasize Strength of case Risk/Return Cyclical/Secular risks

Size positions to minimize unintended risk exposures

Engage with management

Decision Making

Industry growth & profits Demographics Technology Regulation Environmental & social

Company moat & strategy Industry review Company review Management culture

Consistent models Cash flow focused Long term Risk framework

Require >20% upside Downside risk assessment

Quantitative indicators Value opportunities Wealth creation Strong balance sheets Low risk

Qualitative indicators Secular growers Wide moats Strong Governance

50–70Stocks

4,000-Stock Universe

Cash FlowModeling

Idea Generation Fundamental Due Diligence

Qualitative Long-Term Analysis

ESG is included in our quant screens, our fundamental analysis and our financial models


†Carbon Intensity (1+2): weighted average of portfolio less than weighted average of indexSource: MSCI, Norges Bank and AB

Integrated Within Selection Process and OwnershipResponsible Investing Approach

Identify ESG issues and how they are managed

Include in direct modelling Seek compensation for risk Incorporate E,S,G as risk premiums in

quant screens and valuations Bias against some energy, utilities and

materials companies Lower carbon intensity than index†

Voting on all stocks Collaboration between investment

team and AB RI team Third-party tools & data ISS, MSCI, Sustainalytics

Engagement Engagement with companies on

critical ESG issues Utilize AB ESiGht toolset

Can We Impact Behaviour?Can We Model It?


Aiming for Consistent Idiosyncratic Excess ReturnsWhy AB Global Core Equity?

Experienced, Focused Investment Team

Established Track Record of Outperformance

Active Stock Selection

Core Portfolio Construction

Experienced team with extensive research resources who have worked together for many years Disciplined approach to evaluating and selecting securities Sophisticated risk management History of accommodating specific client needs and objectives

Proven track record of delivering strong absolute and relative returns Has resiliently worked across varying market environments Significant inflows over past Q1 2020 Competitive Fees support better net returns

Long Term, cash flow focused stock picking High active share—stock selection drives returns

Maximize the effect of stock selection Minimizes risks from country, style, region, and factor for a low tracking error Strive for smooth excess returns in all environments


APPENDIX


In US DollarsProposed Fee Schedule

GLOBAL CORE EQUITYSeparate Account

Minimum Account: $50 million

0.80 on the first $25 million

0.60 on the next $50 million

0.50 on the balance

Fee (Percent) Assets

Fee at $11 Million: N/A

GLOBAL CORE EQUITYCIT

Minimum Account: $10 million

0.75 on the first $50 million

0.70 on the next $50 million

0.60 on the balance

Note: CIT fee includes admin and is an all-in fee


Fee at $11 Million: 0.75%

GLOBAL CORE EQUITYMutual Fund

Minimum Account: N/A

0.90 on all assets Total


Fee at $11 Million: 0.90%

For your mandate, CIT is lowest cost and most operationally efficient


Active Stock Picking Core Portfolio

Active Stock Selection

AB Global Core Equity Overview

Past performance does not guarantee future results. Data are preliminary. *Premium objective over rolling three-year periods, before fees†Based on BankInvest Basis from January 1, 2004, to March 31, 2010, and AB Global Core Equity composite from July 1, 2011. Measured using rolling periods at BankInvest, CPH Capital and AB (period April 1, 2010–June 30, 2011, is not included). Gross of fees. This is supplemental information to the GIPS-compliant performance and disclosure page.As of March 31, 2020Source: BankInvest, Morningstar, MSCI and AB; see Important Information and Performance Disclosure.

Risk-Aware Portfolio Construction

Winning PercentagePeriods of Rolling Outperformance†

No Style Bias over TimeQuarterly Style Plot

Number of Holdings 50–70

Active Share ~90%

Single Stock Limits Min 0.50%, Max 6%

Concentration ~35% in Top Ten

Target Premium 3% per annum*

Benchmark MSCI ACWI

Factor Exposure Limited

Style Bias None

Tracking Error ~4%, Max 6%

Beta 1.0

Large-CapValue

Small-CapValue

Large-CapGrowth

Small-CapGrowthMSCI ACWI

Strategy59% 68%87% 97% 100%

Months Three-Month One-Year Three-Year Five-Year


Global Core Equity vs. MSCI ACWI (Basis Points)

Past performance does not guarantee future results. Holdings are subject to change. Sector attribution includes stock selection.Based on a representative Global Core Equity account, measured against MSCI All Country World, in USD. Attribution calculated gross of fees.As of March 31, 2020Source: MSCI and AB; see Disclosures and Important Information.

Attribution: 1Q 2020

Largest Contributors

Largest DetractorsSector Attribution

Relative Performance

(39)

35

26

+23

Sector Selection

Company Sector Attribution

Naspers Consumer Discretionary +54

Secom Industrials +41

Singapore Exchange Financials +37

Microsoft Technology +28

Reckitt Benckiser Consumer Staples +25

Company Sector Attribution

Marathon Petroleum Energy (97)

Samsonite Consumer Discretionary (62)

Wells Fargo Financials (50)

Marriott International Consumer Discretionary (38)

Las Vegas Sands Consumer Discretionary (38)

Stock Selection

75

40

33

(35)

(41)

(83)

Industrials

Financials

Communication Services

Energy

Consumer Discretionary

Healthcare

Currency Exposures


Past performance does not guarantee future results.The previous history performance refers to a strategy started at BankInvest, an investment manager based in Denmark, in 1989. David Dalgas was responsible for this Strategy beginning January 1, 2004, along with Klaus Ingemann. On March 31, 2010, these individuals left BankInvest and started their own company, CPH Capital. Performance of the Strategy resumed on July 1, 2011, which is the start date of the composite. AB acquired CPH Capital in June 2014. Historical information provided is for illustrative purposes only. Composite inception July 1, 2011. Gross of fees. Periods of more than one year are annualized. Numbers may not sum due to rounding. Periods of more than one year are annualized. This is supplemental information to the GIPS-compliant performance and disclosure page. 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 March 31, 2020. Source: BankInvest, MSCI and AB; see Performance Disclosure.

Gross of Fees, USD (Percent)A Long History of Delivering Consistent Outperformance for Clients

19.914.6

28.8

15.2

(37.7)

33.6

2.4

(11.8)

26.130.2

2.0

(1.7)

8.9

26.4

(4.3)

28.7

(20.7)

15.210.8

21.0

11.7

(42.2)

34.6

3.1

(11.5)

16.122.8

4.2

(2.4)

7.9

24.0

(9.4)

26.6

(21.4)

2004 2005 2006 2007 2008 2009 1Q:2010

2H:2011

2012 2013 2014 2015 2016 2017 2018 2019 YTD2020

Relative Return +3.9%Tracking Error 3.4%Information Ratio 1.1

Relative Return +2.8%Tracking Error 3.2%Information Ratio 0.9

Previous History CompositeMSCI ACWI


Past performance does not guarantee future results.Black line indicates return of MSCI ACWI. Diamond indicates performance of strategy. Correlation of excess returns of the AB Global Core Equity Strategy and MSCI ACWI factor indices vs. the MSCI ACWI index. Based on periods January 1, 2004, to March 31, 2010, and from July 1, 2011, to present. This is supplemental information to the GIPS-compliant performance and disclosure page. 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. Composite inception July 1, 2011. As of March 31, 2020. Source: BankInvest, MSCI and AB; see Performance Disclosure.

Factor Biases Can Increase Risk

Correlation of Excess Return

Annual Returns (USD, Percent)2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1Q 2020

Minimum Volatility 21.6

Momentum26.3

High Yield28.7

Momentum24.4

Minimum Volatility(25.6)

Growth37.5

Momentum16.0


Momentum17.5

Momentum26.8



Value12.6

Momentum33.5


Quality35.1

Momentum(12.1)

Momentum21.5

Growth11.6

Value25.6

Quality19.5

Quality(36.2)

High Yield37.1

Growth15.1

Momentum1.9

Growth16.7

Quality23.2

Quality8.2

Momentum1.9

High Yield10.0

Growth30.0

Momentum(4.9)

Growth32.7

Quality(15.5)

High Yield19.6

Value10.8


Growth16.6

Value(41.5)

Quality36.0


Quality1.6

Value15.6

Growth23.2

Momentum5.9

Growth1.6


Quality28.4

High Yield (7.1)

Momentum27.5

Growth(15.7)

Value19.1

High Yield9.5

Momentum23.0

High Yield9.0

High Yield (41.6)

Value31.7

Quality11.5

High Yield (0.7)

Quality14.9

Value22.4

Growth5.4

Quality1.5

Quality5.5

High Yield18.9

Quality(7.4)

High Yield23.9


Quality12.9


Quality18.2


Growth(42.9)

Momentum19.3

Value10.2

Value(7.3)

High Yield14.4

High Yield18.2

Value2.9

High Yield (5.4)

Momentum4.2

Value18.3

Growth(8.1)


High Yield(22.2)

Growth11.8

Quality7.8

Growth15.7

Value6.7

Momentum(45.2)


High Yield7.8

Growth(7.4)



High Yield1.3

Value(6.3)

Growth3.3


Value(10.8)

Value20.6

Value(27.1)

Factor returns are volatile and have unpredictable levels of risk, making them hard to forecast

Momentum

0.0

Minimum Volatility

(0.1)

High Yield

(0.2)

Value

(0.0)

Quality

0.0

Growth

0.0

Strategy has had minimal correlation with factor–driven excess returns

MSCI ACWI

AB Global Core Equity

We seek to ensure that stock selection, and not factor exposures, drives excess return in the Portfolio


Source: AB

Looking for Better Companies at Attractive ValuationsIdentifying Candidates

Research Focus

Most Attractive

Least Attractive

Mor

e so

urce

s of

retu

rnFe

w s

ourc

es o

f ret

urn

Driver Quantitative Indicators Fundamental Indicators

High Fundamental Returns MS moat HOLT eCAP CFROI level CFROI trend

Entry barriers and competition Buyer and supplier power Technology disruption Regulatory changes Brands and patents

Long-Term Growth Sales growth CF growth

Industry growth Demographics Product innovation Management culture

Low Risk Leverage Fixed charge coverage CFROI variability Low ESG risks

Stress testing Short case review

Capital Allocation Total yield Management incentives

Low Price Multiples Price to FCF EV/EBITDA Price/earnings Adjusted for risk premiums

DCF valuation Scenario analysis


Portfolio Construction

Strategy vs. MSCI ACWISource: FactSet, MSCI and AB

Risk Profile

Global Core Equities

Style Risks

Stock-Specific

Risk

StockSelection

PortfolioConstruction

Best New Ideas

Adjust Current Holdings

Maximize Alpha Potential

Reduce Factor Risks

Higher ROIC Better Balance Sheets Better Capital Deployment Better Management

Incentives Lower Cash Flow Multiples


Analysis provided for illustrative purposes only and is subject to revisionStyle Research chart (as of February 29, 2020) shows the breakdown of tracking error attributed to equity risk vs. peers in the Morningstar EAA Global Large Cap Blend category, relative to MSCI ACWI, divided into quartiles. A higher stock-specific risk attribution means the strategy generates more stock specific risk than peers. 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 March 31, 2020Source: Axioma, Bloomberg, Citigroup, MSCI Barra, StyleAnalytics, UBS and AB

We Use a Multitude of Risk ModelsHow We Monitor and Assess Risk

0%10%20%30%40%50%60%70%80%90%

100%

Barra

GEM

LT (S

T)

Barra

GEM

LT(R

)

Barra

GEM

3L

Barra

GEM

3S

Citi

GR

AM

AB-V

(1.1

)

AB-C

ore

(2.0

)

Bloo

mbe

rg G

loba

l

Bber

g G

EF R

-S

Axio

ma-

CS-

MT

Axio

ma-

STAT

-MT

Axio

ma-

CS-

ST

Axio

ma-

STAT

-ST

Ris

k C

ontri

butio

n

Stock Specific Risk Styles * Sectors/Industry Country Currency Macro (TS) Statistical

Average: 68.6%

Stoc

k-Sp

ecifi

c R

isk

Attri

butio

nPe

rcen

t of R

isk

Style Research:Risk vs. Peers

2nd Percentile

AB Global Core Equity


Prime Alpha Since Inception (Percent)*Striving for Consistent Idiosyncratic Returns

Past performance does not guarantee future results.*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. Calculated before fees based on institutional composite returns versus MSCI ACWI. Inception date: Global Core Equity—June 30, 2011. Data in US Dollars. Performance data are annualized. 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 March 31, 2020. Source: BlackRock, MSCI and AB; see Performance Disclosure.

Exposures Contribution to Returns

3.56

(0.75)

Excess Return Factor Returns

(0.48)

(0.41)

0.14

(0.21)

0.22

2.80Prime Alpha

(0.00)

(0.13)

(0.11)

0.04

0.10

(0.06)Value

Size (Small Cap)

Quality

Min Vol

Momentum

Market


A Portfolio of Better Companies at Attractive Prices

Past performance and current analysis do not guarantee future results.Strategy (excluding holding companies) vs. MSCI ACWI*Return on invested capital is measured using cash flow return on investment (CFROI).†EPS: earnings per shareAs of March 31, 2020Source: FactSet, MSCI and AB

Profitability/Capital Use Strategy IndexReturn on Invested Capital* 15.7% 13.5%

Return on Invested Capital Volatility* 14.6% 22.2%

Leverage

Net Debt/Equity ex Financials 16.9% 21.5%

GrowthHistorical Five-Year EPS† 12.3% 14.6%

ValuationPrice/Earnings (FY1) 15.0 14.9

Price/Free Cash Flow (FY1) 16.9 17.3

Better Companies

Structurally attractive and growing industries

Competitively advantaged/wide moats

Good stewards of capital

Strong balance sheets

Attractive Prices


Portfolio Characteristics (Percent)

Holdings are subject to change. Data are preliminary.Based on a representative account compared to the MSCI ACWI Index. The portfolio allocation excludes cash and futures unless otherwise shown.Numbers may not sum due to rounding. As of March 31, 2020Source: MSCI and AB

Current Weights by Region

Region Portfolio Active Weight

Japan 12.7

Dev. Europe ex UK 15.8

Dev. Asia Pacific ex Japan 3.1

UK 3.6

Emerging 10.4

US 54.2

Canada —

Current Weights by Sector

Sector Portfolio Active WeightCommunication Services 13.0

Financials 17.6

Consumer Discretionary 13.0

Materials 4.8

Industrials 9.7

Energy 3.3

Healthcare 12.4

Technology 17.9

Real Estate 1.4

Consumer Staples 6.9

Utilities —

3.7

3.2

2.1

0.4

0.1

(0.4)

(0.9)

(0.9)

(1.8)

(2.0)

(3.6)

5.1

2.4

(0.1)

(0.7)

(1.8)

(2.4)

(2.7)


We increased name count in Q1 to reduce risk

Based on a representative Global Core Equity account. Holdings are subject to change.Weights relative to MSCI ACWIAs of March 31, 2020Source: MSCI and AB

Recent Portfolio Changes

-5.0% 0.0% 5.0%

Information Technology


Financials

Utilities

Industrials

Real Estate

Energy


Health Care

Materials

Consumer Staples

-2.0% 0.0% 2.0%


Utilities

Health Care

Real Estate

Energy


Materials

Industrials

Financials

Consumer Staples

Information Technology

Changes to Relative Weight:Q1 2020

Changes to Relative Weight:Last 12-Months

Transactions in Q12020Buys/Adds Sells/Trims


Past performance does not guarantee future results.Decomposition of cumulative excess return for the two periods shown.

*Based on a representative account from June 30, 2011 to March 31, 2020. Left to right—Regions: Africa/Mideast, Latin America, Europe, Japan, Asia/Pacific ex Japan, North America; Sectors: materials, consumer discretionary, consumer staples, communication services, real estate, energy, utilities, industrials, healthcare, technology, financials; Styles: value/growth, neutral, value, growth; Size Categories: mega, small-mid, large.

†Based on a representative account from December 31, 2003 to March 31, 2010. Left to right—Regions: Africa/Mideast, Japan, Asia/Pacific ex Japan, Latin America, North America, Europe; Sectors: energy, healthcare, utilities, industrials, technology, communication services, consumer staples, materials, financials, consumer discretionary; Styles:growth, neutral, value/growth, value; Size Categories: mega, small-mid, largeThis is supplemental information to the GIPS-compliant performance and disclosure page. 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. Source: FactSet, Morningstar, MSCI and AB; see Performance Disclosures.

Stock Selection, Not Factor Exposure, Drives ResultsPercent

Previous History†Composite*

Stock Selection in Size CategoriesStock Selection in Styles

(6)

(3)

0

3

6

(2) 0 2 4 6 8 10 12 14 16 18(6)

(3)

0

3

6

(4) (2) 0 2 4 6 8 10 12 14 16 18 20 22

Stock Selection in SectorsStock Selection in Regions

(10)(6)(2)26

10

(5) 0 5 10 15 20 25 30 35(6)

(3)

0

3

6

(2) 0 2 4 6 8 10 12 14 16

Reg

iona

lAl

loca

tion

Stock Selection

Sect

orAl

loca

tion

Stock Selection

Styl

eAl

loca

tion

Stock Selection

Size

Allo

catio

n

Stock Selection


Source: AB

Investment Team Profiles

Rasmus Lee Hansen, CFA

Portfolio Manager and Senior Research Analyst—Global Core Equity

Rasmus Lee Hansen was promoted to Portfolio Manager in 2016 having joined AB in 2014 as a Senior Research Analyst for AB Global Core Equity. He previously served as a senior research analyst at CPH Capital. Prior to that, Hansen was a research analyst and portfolio manager at BankInvest, where he had shared responsibility for the Investment Grade Corporate Bonds fund. He holds both a BSc and an MSc in business administration and management science from the Copenhagen Business School, and is a CFA charterholder. He is also an active member of The Danish Society of Financial Analysts and the CFA Society Denmark. Location: Copenhagen

David Dalgas joined AB in 2014 and is Co-Chief Investment Officer of Global Core Equity. He previously served as head of equities and CIO at CPH Capital, which he cofounded in 2011. Prior to that, Dalgas was head of equities at BankInvest, where he was responsible for equity portfolios serving global institutional investors. He previously worked in portfolio management and equity research at LD Invest (now known as Maj Invest), WestLB, Amagerbanken and the Central Bank of Denmark. Dalgas holds a BSc in economics and business administration and an MSc in finance and accounting from the Copenhagen Business School, and is a CFA charterholder.Location: Copenhagen

David Dalgas, CFA

Co-Chief Investment Officer—Global Core Equity

Klaus Ingemann, CFA

Co-Chief Investment Officer—Global Core Equity

Klaus Ingemann joined AB in 2014 as Portfolio Manager and Senior Research Analyst and was promoted to Co-Chief Investment Officer of Global Core Equity in 2018. He previously served as an executive member of the investment board at CPH Capital, which he cofounded in 2011. Prior to that, Ingemann was chief portfolio manager and a member of the investment board at BankInvest. He previously worked as a corporate finance advisor for Carnegie Bank, where he mainly advised on cross-border mergers and acquisitions. Before that, Ingemann spent four years in the finance department at Tele Danmark, where he was primarily involved with developing a value-at-risk management system. He holds a BSc in business administration and an MSc in finance and accounting from the Copenhagen Business School, and is a CFA charterholder. Location: Copenhagen

Per la Cour joined AB in 2014 as a Senior Research Analyst for AB Global Core Equity. He previously served as a senior research analyst at CPH Capital, where he oversaw the Global Consumer Equities fund. Prior to that, la Cour was a research analyst and portfolio manager at BankInvest, where he was responsible for investments in the consumer sectors and for the Consumer Equities fund. He previously worked at Skandia and Alm. Brand. Prior to joining the financial industry, la Cour worked for three years as a ship broker. He holds both a BSc and an MSc in finance and accounting from the Copenhagen Business School, and is an active member of The Danish Society of Financial Analysts and CFA Denmark. Location: New York

Per la Cour

Senior Research Analyst—Global Core Equity

Thomas Skovbjerg, CFA

Senior Research Analyst—Global Core Equity

Thomas Skovbjerg joined AB in 2016 as a Senior Research Analyst for Global Core Equity. He previously served as a partner with Adaxia Capital Partners, the London-based manager of CPE Private Equity, investing in energy, industrials and materials companies on behalf of institutional investors. Prior to that, Skovbjerg was a research analyst and portfolio manager at BankInvest, where he was responsible for investments in the energy and materials sectors. He previously worked as a fund manager at ATP, the largest pension fund in Denmark. Skovbjerg holds an MSc in economics from the University of Copenhagen and is a CFA charterholder. Location: Copenhagen.

Thomas Christensen, CAIA, CQF

Senior Quantitative Analyst—Global Core Equity

Thomas Christensen joined AB in 2014 as a Senior Quantitative Analyst for AB Global Core Equity. He previously served as senior risk and quant manager at CPH Capital. Prior to that, Christensen held a similar role at BankInvest. He holds both a BSc and an MSc in business administration and management science from the Copenhagen Business School, and is a Chartered Alternative Investment Analyst (CAIA) with a Certificate in Quantitative Finance (CQF). Location: Copenhagen


Disclosures and Important Information

Disclosure on Security ExamplesReferences 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. Upon request, we will furnish a listing of all investments made during the prior one-year period.Past performance is not a guide to future performance.

Additional InformationThe value of investments and the income from them can fall as well as rise, and you may not get back the original amount invested.The value of non-domestic securities may be subject to exchange-rate fluctuations.The views and opinions expressed in this presentation are based on AB’s internal forecasts and should not be relied upon as an indication of future market performance or any guarantee of return from an investment in any AB services.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. CFROI® is a registered trademark of Credit Suisse

Strategy HistoryThe performance history contained within refers to a strategy started at BankInvest, an investment manager based in Denmark, in 1989. David Dalgas was responsible for this strategy beginning 1 January 2004 along with Klaus Ingemann. On 31 March 2010 David and Klaus left BankInvest and started their own company, CPH Capital. Performance of the strategy resumed on 1 July 2011 which is the start date of the composite. AB acquired CPH Capital in June 2014. See Performance Disclosure.


A Word About RiskMarket Risk: The market values of the investments may rise and fall from day to day, so investments may lose value.

Interest Rate Risk: Bonds may lose value if interest rates rise or fall—long-duration bonds tend to rise and fall more than short-duration bonds.

Credit Risk: A bond’s credit rating reflects the issuer’s ability to make timely payments of interest or capital—the lower the rating, the higher the risk of default. If

the issuer’s financial strength deteriorates, the issuer’s rating may be lowered and the bond’s value may decline.

Allocation Risk: Allocating to different types of assets may have a large impact on returns if one of these asset classes significantly underperforms the others.

Foreign Risk: Investing in overseas assets may be more volatile because of political, regulatory, market and economic uncertainties associated with them. These

risks are magnified in assets of emerging or developing markets.

Currency Risk: Currency fluctuations may have a large impact on returns and the value of an investment may be negatively affected when translated into the

currency in which the initial investment was made.

Capitalization Size Risk: Holdings in smaller companies are often more volatile than holdings in larger ones.

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.

Any references to specific securities are presented to illustrate the application of our investment philosophy only and are not to be considered investment

recommendations. The specific securities identified and described in this presentation do not represent all of the securities purchased, sold or recommended for a

portfolio, and it should not be assumed that investments in the securities identified were or will be profitable.


Global 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.© 2020 AllianceBernstein L.P. www.AllianceBernstein.com

IMA-113468-2020-04-15IC2020433

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