AB Asset Management continues to deliver impressive performance through its equity and fixed-income strategies. In terms of equity, the firm is led by international technology and small-cap growth stocks. In terms of fixed-income, it is led by American and European income sectors. This sustained above-average performance has helped the firm grow its AUM significantly over the last five years. Specifically, select growth equity products increased from $18 billion to $85 billion between 2016 and 2020. Overall AUM also grew at an impressive rate.
AB’s investment process
The goal of AB’s investment process is to build a portfolio of diverse companies and generate premium returns through stock selection. AB’s investment process involves identifying high-quality companies with strong growth potential and then investing in these stocks to beat market expectations. To achieve these goals, AB’s investment team uses a process known as value investing. Read on to learn more about how AB’s investment process works.
Its research team
A key component of a solid asset allocation strategy is a research team, and the AB Asset Management team at SEG does not disappoint. Its dedicated research team is knowledgeable about the latest market trends, and it regularly creates customized investment portfolios for clients. The research team identifies and monitors trends to improve the overall performance of clients’ portfolios. To ensure that SEG is achieving these goals, the asset management firm is consistently evaluating new investment strategies and methodologies.
Its global analyst team
The Americas Client Business of AB Asset Management markets the company’s products and services to financial intermediaries and institutions, building relationships and communicating key themes from leading investment professionals. The company’s Global Analyst Team (GAT) performs original bottom-up research across developed and emerging markets, utilizing growth and value equity strategies. The team also collaborates with other research analysts and portfolio managers. A member of the Global Tactical Asset Allocation team is responsible for developing the firm’s strategic plans.
Its partnership with ESG experts
While investment managers are increasingly aware of the importance of environmental, social, and governance (ESG) factors, they still struggle to apply these principles to their portfolios. In fact, only about half of all asset managers consider ESG factors as a primary factor for investment decisions. This is a significant problem because most of the available ESG data is categorized at the entity level and matching those entities to specific securities requires manual intervention.
As a result of the increasing interest in sustainable investing, many of the world’s biggest institutions have stepped up their sustainability efforts. For example, Japan’s GPIF, which manages $1.1 trillion, recently selected three ESG indexes for passive investments in Japanese equities. The second-largest pension fund in Europe, ABP, announced two ESG-related goals at the end of last year, including reducing its carbon footprint by 2020 and investing EUR5 billion in renewable energy.
