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Alliance Bernstein

PRI reporting framework 2019

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Asset class implementation not reported in other modules

SG 16. ESG issues for internally managed assets not reported in framework

Describe how you address ESG issues for internally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Property

For our property funds, we recognize that there are considerations that go beyond merely achieving a target investment return, which may include certain non-financial objectives such as promoting the use of responsible contractors. Our ability to address those non-financial considerations is limited to circumstances where such actions are within the fund's power and authority and are consistent with our fiduciary duties to the investment fund we manage, applicable laws, and any contractual limitations imposed by agreements with third parties. 

Commodities

In allocating to commodities within our multi-asset strategies, we actively consider ESG issues and the effects these can have on a portfolio. Our ability to address non-financial ESG considerations within commodities is limited due to the nature of investing in this asset via derivative contracts.

Money market instruments

We have long recognized that ESG issues can impact the performance of investment portfolios, and we have long believed that the integration of ESG factors is critical to the success of a fundamental research process. As such, our analysts have carefully assessed ESG factors in their analysis if they believe those factors have, or could have, a material impact on our forecasts and investment decisions.

Other (1) [as defined in Organisational Overview module]

We actively consider ESG issues within our multi-asset portfolio construction. When asset allocations are implemented passively, our ability to address these issues directly is limited.

Where these allocations are implemented actively, we integrate ESG considerations into the research process and engage with target companies. We also make use of firm-level active ownership to add value through proxy voting.

Where clients invest in customised solutions or segregated mandates, we seek to align the ESG investment policies with those of the client.

16.2. Additional information [Optional].

Our focus has been to enhance our equities and fixed income ESG integration processes as they represent the largest component of our assets under management. Over time, we will work with other investment teams to develop processes for other asset classes, where appropriate. 


SG 17. ESG issues for externally managed assets not reported in framework

17.1. Describe how you address ESG issues for externally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Listed equities - engagement

Engagement is executed by the asset manager for the underlying fund(s).

Listed equities - (proxy) voting

Proxy voting is executed by the asset manager for the underlying fund(s). 

Other (1) [as defined in Organisational Overview module]

Where our multi-asset solutions make use of external investment managers, proxy voting and engagement is executed by the external investment manager. To best align the actions of external managers with the best interests of AB and its clients, external managers’ resources, polices and stewardship records are considered during the selection and appointment process. Consideration is also taken with regard to the external managers’ exclusion policies.

17.2. Additional information.


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