AB Asset Management Launches 'AB Europe Equity Fund'

[Asia Economy Reporter Minji Lee] Global asset management firm AllianceBernstein Asset Management (AB Asset Management) announced on the 5th the launch of the ‘AB Europe Equity Fund,’ which invests in European stocks expected to benefit during the interest rate hike period.

This fund is a fund of funds investing in the AB SICAV I ? Europe Equity Portfolio established in Luxembourg. It primarily invests in stocks of companies established or conducting business activities in Europe, including the United Kingdom, aiming to increase asset value. The underlying fund was established on May 31, 2006, and as of the end of June, it holds approximately KRW 996 billion in net assets.

Europe is expected to experience economic recovery. Compared to other regions, the vaccination rate is high, and the European Central Bank continues strong fiscal and monetary stimulus policies. Additionally, European stocks are still significantly discounted compared to U.S. stocks, which have repeatedly hit all-time highs since the pandemic, making their valuation relatively attractive. In particular, based on the MSCI Europe Index, the European stock market has over 40% weighting in cyclical sectors such as energy, finance, and consumer discretionary, which tend to benefit during periods of rising interest rates.

The AB Europe Equity Fund selects approximately 40 to 60 stocks through a bottom-up process based on AllianceBernstein’s global fundamental research to build an optimal portfolio. Furthermore, it integrates ESG factors, which have recently become central to consumers and investors, striving to achieve investment goals over the medium to long term.

Lee Changhyun, CEO of AB Asset Management, stated, “Since last year, many global investors have focused on the U.S. market, leaving the European stock market relatively undervalued. The newly launched ‘AB Europe Equity Fund’ is expected to be a suitable investment option for investors interested in the European stock market, which is showing strong economic recovery prospects after overcoming the pandemic.”

Meanwhile, as of August 5, the ‘AB Europe Equity Fund’ is available for subscription through SC First Bank and SK Securities, with plans to expand sales channels in the future.

This content was produced with the assistance of AI translation services.