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What You Should Know about the AB International Growth Fund

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Mar. 10 2016, Updated 11:25 a.m. ET

AB International Growth Fund

The AB International Growth Fund invests “in an international portfolio of equity securities of companies selected by the Adviser for their growth potential within various market sectors.” Fund literature states that the fund will be invested in stocks of companies located in at least three countries other than the US. Assets are invested in both developed and emerging markets. The fund can invest in derivatives like futures and options as well as currency derivatives to hedge unfavorable currency exposure. Daniel Roarty manages the fund.

Bottom-up stock research is the primary driver for stock selection. Geographic allocation is not pre-determined and is driven by the stock selection process. The fund normally invests in 60–100 stocks.

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Portfolio composition

According to information provided by the fund house, financials were the single-largest sectoral holding of the fund and formed 30.3% of the portfolio as of January 2016. Consumer staples and consumer discretionary, in that order, were a distant second and third, and had nearly equal exposure. Healthcare and information technology rounded off the sectors with the top five weights. The fund is not invested in the telecom services sector.

Stocks from the UK formed 15.9% of the fund’s assets for January, making the UK the geography with the highest weight. Switzerland followed closely, forming 13.5% of the portfolio. India, Japan, and China, in that order, rounded off the top five countries with the highest weights.

Prudential (PUK), UBS Group (UBS), Nissan Motor (NSANY), Credicorp (BAP), and Melco Crown Entertainment (MPEL) were among the fund’s 71 holdings as of the end of January. As of February 2016, the fund was managing assets worth $319.8 million.

Fees and minimums

The AB International Growth Fund – Class A (AWPAX) was incepted in June 1994 and has an expense ratio of 1.4%. There is a required minimum of $2,500 to invest in the Class A shares of the fund, and the minimum subsequent investment is $50. The fund can charge a maximum sales charge of 4.3% on the purchase of Class A shares.

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