UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-03131
AB SUSTAINABLE GLOBAL THEMATIC FUND, INC.
(Exact name of registrant as specified in charter)
1345 Avenue of the Americas, New York, New York 10105
(Address of principal executive offices) (Zip code)
Joseph J Mantineo
AllianceBernstein L.P.
1345 Avenue of the Americas
New York, New York 10105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (800) 221-5672
Date of fiscal year end: July 31, 2019
Date of reporting period: October 31, 2018
ITEM 1. | SCHEDULE OF INVESTMENTS. |
AB Sustainable Global Thematic Fund
Portfolio of Investments
October 31, 2018 (unaudited)
Company |
Shares | U.S. $ Value | ||||||
COMMON STOCKS - 96.8% |
| |||||||
Health Care - 21.2% |
| |||||||
Health Care Equipment & Supplies - 7.4% |
| |||||||
Abbott Laboratories |
276,370 | $ | 19,052,948 | |||||
Danaher Corp. |
181,973 | 18,088,116 | ||||||
EssilorLuxottica SA |
115,033 | 15,711,036 | ||||||
West Pharmaceutical Services, Inc. |
127,723 | 13,528,420 | ||||||
|
|
|||||||
66,380,520 | ||||||||
|
|
|||||||
Health Care Providers & Services - 3.5% |
||||||||
Apollo Hospitals Enterprise Ltd. |
1,048,600 | 16,213,919 | ||||||
UnitedHealth Group, Inc. |
59,807 | 15,630,559 | ||||||
|
|
|||||||
31,844,478 | ||||||||
|
|
|||||||
Health Care Technology - 1.6% |
||||||||
Medidata Solutions, Inc. (a) |
203,430 | 14,301,129 | ||||||
|
|
|||||||
Life Sciences Tools & Services - 8.4% |
||||||||
Bio-Rad Laboratories, Inc.-Class A (a) |
58,520 | 15,967,182 | ||||||
Bruker Corp. |
506,794 | 15,877,856 | ||||||
Gerresheimer AG |
147,500 | 10,395,153 | ||||||
ICON PLC (a) |
137,970 | 19,050,898 | ||||||
Tecan Group AG |
63,900 | 14,415,056 | ||||||
|
|
|||||||
75,706,145 | ||||||||
|
|
|||||||
Pharmaceuticals - 0.3% |
||||||||
Vectura Group PLC (a) |
3,530,270 | 3,207,034 | ||||||
|
|
|||||||
191,439,306 | ||||||||
|
|
|||||||
Financials - 17.3% |
||||||||
Banks - 5.7% |
||||||||
Bank Mandiri Persero Tbk PT |
20,899,500 | 9,390,589 | ||||||
Credicorp Ltd. |
74,360 | 16,783,796 | ||||||
HDFC Bank Ltd. |
315,390 | 8,153,991 | ||||||
Svenska Handelsbanken AB-Class A |
749,600 | 8,148,030 | ||||||
Swedbank AB-Class A |
380,900 | 8,568,167 | ||||||
|
|
|||||||
51,044,573 | ||||||||
|
|
|||||||
Capital Markets - 6.2% |
||||||||
Charles Schwab Corp. (The) |
356,725 | 16,494,964 | ||||||
MSCI, Inc.-Class A |
150,480 | 22,629,182 | ||||||
Partners Group Holding AG |
23,044 | 16,406,283 | ||||||
|
|
|||||||
55,530,429 | ||||||||
|
|
|||||||
Consumer Finance - 1.0% |
||||||||
Bharat Financial Inclusion Ltd. (a) |
759,608 | 8,961,880 | ||||||
|
|
|||||||
Insurance - 2.7% |
||||||||
AIA Group Ltd. |
2,024,000 | 15,396,655 | ||||||
Prudential PLC |
472,050 | 9,452,154 | ||||||
|
|
|||||||
24,848,809 | ||||||||
|
|
|||||||
Thrifts & Mortgage Finance - 1.7% |
||||||||
Housing Development Finance Corp., Ltd. |
649,483 | 15,519,921 | ||||||
|
|
|||||||
155,905,612 | ||||||||
|
|
Company |
Shares | U.S. $ Value | ||||||
Information Technology - 14.9% |
| |||||||
IT Services - 3.2% |
| |||||||
Visa, Inc.-Class A |
163,285 | $ | 22,508,837 | |||||
Wirecard AG |
35,450 | 6,631,168 | ||||||
|
|
|||||||
29,140,005 | ||||||||
|
|
|||||||
Semiconductors & Semiconductor Equipment - 4.1% |
||||||||
ams AG (a)(b) |
128,915 | 5,022,174 | ||||||
Infineon Technologies AG |
807,313 | 16,176,043 | ||||||
NVIDIA Corp. |
76,099 | 16,043,952 | ||||||
|
|
|||||||
37,242,169 | ||||||||
|
|
|||||||
Software - 5.1% |
||||||||
Dassault Systemes SE |
97,880 | 12,253,062 | ||||||
Microsoft Corp. |
199,130 | 21,269,075 | ||||||
SailPoint Technologies Holding, Inc. (a) |
485,660 | 12,646,587 | ||||||
|
|
|||||||
46,168,724 | ||||||||
|
|
|||||||
Technology Hardware, Storage & Peripherals - 2.5% |
||||||||
Apple, Inc. |
100,739 | 22,047,737 | ||||||
|
|
|||||||
134,598,635 | ||||||||
|
|
|||||||
Industrials - 13.8% |
||||||||
Aerospace & Defense - 2.2% |
||||||||
Hexcel Corp. |
340,349 | 19,917,224 | ||||||
|
|
|||||||
Building Products - 2.9% |
||||||||
Cie de Saint-Gobain |
169,080 | 6,369,486 | ||||||
Kingspan Group PLC |
442,435 | 19,243,168 | ||||||
|
|
|||||||
25,612,654 | ||||||||
|
|
|||||||
Commercial Services & Supplies - 1.3% |
||||||||
China Everbright International Ltd. |
14,173,740 | 11,338,929 | ||||||
|
|
|||||||
Electrical Equipment - 3.6% |
||||||||
Schneider Electric SE |
199,220 | 14,405,816 | ||||||
Vestas Wind Systems A/S |
289,550 | 18,157,788 | ||||||
|
|
|||||||
32,563,604 | ||||||||
|
|
|||||||
Industrial Conglomerates - 1.5% |
||||||||
Siemens AG |
120,524 | 13,853,850 | ||||||
|
|
|||||||
Machinery - 2.3% |
||||||||
Xylem, Inc./NY |
315,128 | 20,666,094 | ||||||
|
|
|||||||
123,952,355 | ||||||||
|
|
|||||||
Consumer Discretionary - 7.8% |
||||||||
Auto Components - 2.3% |
||||||||
Aptiv PLC |
202,602 | 15,559,834 | ||||||
Delphi Technologies PLC |
245,570 | 5,265,021 | ||||||
|
|
|||||||
20,824,855 | ||||||||
|
|
|||||||
Diversified Consumer Services - 1.7% |
||||||||
Bright Horizons Family Solutions, Inc. (a) |
131,220 | 15,078,490 | ||||||
|
|
|||||||
Internet & Direct Marketing Retail - 3.8% |
||||||||
Amazon.com, Inc. (a) |
13,177 | 21,056,978 |
Company |
Shares | U.S. $ Value | ||||||
Etsy, Inc. (a) |
321,770 | $ | 13,681,660 | |||||
|
|
|||||||
34,738,638 | ||||||||
|
|
|||||||
70,641,983 | ||||||||
|
|
|||||||
Consumer Staples - 7.5% |
||||||||
Food Products - 4.1% |
||||||||
Kerry Group PLC-Class A |
182,570 | 18,714,311 | ||||||
Nestle SA |
213,825 | 18,051,766 | ||||||
|
|
|||||||
36,766,077 | ||||||||
|
|
|||||||
Household Products - 1.8% |
||||||||
Unicharm Corp. |
612,200 | 16,608,206 | ||||||
|
|
|||||||
Personal Products - 1.6% |
||||||||
Unilever PLC |
270,120 | 14,308,155 | ||||||
|
|
|||||||
67,682,438 | ||||||||
|
|
|||||||
Utilities - 5.4% |
||||||||
Multi-Utilities - 1.2% |
||||||||
Suez |
750,860 | 10,830,629 | ||||||
|
|
|||||||
Water Utilities - 4.2% |
||||||||
American Water Works Co., Inc. |
195,911 | 17,344,001 | ||||||
Aqua America, Inc. |
263,630 | 8,575,884 | ||||||
Beijing Enterprises Water Group Ltd. (a) |
22,454,000 | 11,466,339 | ||||||
|
|
|||||||
37,386,224 | ||||||||
|
|
|||||||
48,216,853 | ||||||||
|
|
|||||||
Materials - 4.0% |
||||||||
Chemicals - 4.0% |
||||||||
Ecolab, Inc. |
156,799 | 24,013,767 | ||||||
Koninklijke DSM NV |
136,900 | 11,952,575 | ||||||
|
|
|||||||
35,966,342 | ||||||||
|
|
|||||||
Communication Services - 2.8% |
||||||||
Interactive Media & Services - 2.8% |
||||||||
Alphabet, Inc.-Class C (a) |
15,821 | 17,035,578 | ||||||
Tencent Holdings Ltd. |
236,000 | 8,085,185 | ||||||
|
|
|||||||
25,120,763 | ||||||||
|
|
|||||||
Real Estate - 2.1% |
||||||||
Equity Real Estate Investment Trusts (REITs) - 1.5% |
||||||||
SBA Communications Corp. (a) |
82,790 | 13,426,055 | ||||||
|
|
|||||||
Real Estate Management & Development - 0.6% |
||||||||
SM Prime Holdings, Inc. |
8,406,600 | 5,314,848 | ||||||
|
|
|||||||
18,740,903 | ||||||||
|
|
|||||||
Total Common Stocks |
872,265,190 | |||||||
|
|
Company |
Shares | U.S. $ Value | ||||||
SHORT-TERM INVESTMENTS - 3.0% |
| |||||||
Investment Companies - 3.0% |
| |||||||
AB Fixed Income Shares, Inc.-Government Money Market Portfolio-Class
AB, |
27,011,255 | $ | 27,011,255 | |||||
|
|
|||||||
Total Investments Before Security Lending Collateral for Securities Loaned -
99.8% |
|
899,276,445 | ||||||
|
|
|||||||
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED - 0.5% |
||||||||
Investment Companies - 0.5% |
||||||||
AB Fixed Income Shares, Inc.-Government Money Market Portfolio-Class
AB, |
4,630,214 | 4,630,214 | ||||||
|
|
|||||||
Total Investments - 100.3% |
|
903,906,659 | ||||||
Other assets less liabilities - (0.3)% |
(2,371,953 | ) | ||||||
|
|
|||||||
Net Assets - 100.0% |
$ | 901,534,706 | ||||||
|
|
FORWARD CURRENCY EXCHANGE CONTRACTS
Counterparty |
Contracts to Deliver (000) |
In Exchange For (000) |
Settlement Date |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||
Bank of America, NA |
USD | 3,409 | RUB | 225,797 | 11/14/18 | $ | 13,612 | |||||||||||||
Bank of America, NA |
PHP | 608,151 | USD | 11,100 | 12/11/18 | (276,723 | ) | |||||||||||||
Barclays Bank PLC |
USD | 2,862 | PHP | 155,836 | 12/11/18 | 53,148 | ||||||||||||||
Barclays Bank PLC |
USD | 1,912 | INR | 143,087 | 12/13/18 | 10,181 | ||||||||||||||
Barclays Bank PLC |
CHF | 2,270 | USD | 2,294 | 12/14/18 | 31,365 | ||||||||||||||
Barclays Bank PLC |
USD | 29,620 | CAD | 38,672 | 12/14/18 | (219,189 | ) | |||||||||||||
Barclays Bank PLC |
USD | 2,986 | JPY | 333,998 | 12/14/18 | (16,302 | ) | |||||||||||||
BNP Paribas SA |
TWD | 68,032 | USD | 2,205 | 12/11/18 | 1,486 | ||||||||||||||
BNP Paribas SA |
USD | 5,401 | INR | 398,099 | 12/13/18 | (52,725 | ) | |||||||||||||
Citibank, NA |
USD | 15,977 | KRW | 18,068,797 | 11/15/18 | (144,378 | ) | |||||||||||||
Citibank, NA |
INR | 3,466,344 | USD | 49,679 | 12/13/18 | 3,111,187 | ||||||||||||||
Citibank, NA |
CAD | 3,705 | USD | 2,843 | 12/14/18 | 26,228 | ||||||||||||||
Citibank, NA |
CHF | 5,195 | USD | 5,275 | 12/14/18 | 95,760 | ||||||||||||||
Citibank, NA |
EUR | 61,631 | USD | 71,919 | 12/14/18 | 1,858,137 | ||||||||||||||
Citibank, NA |
GBP | 1,808 | USD | 2,384 | 12/14/18 | 68,337 | ||||||||||||||
Goldman Sachs Bank USA |
CHF | 2,355 | USD | 2,370 | 12/14/18 | 22,135 | ||||||||||||||
Goldman Sachs Bank USA |
GBP | 4,144 | USD | 5,415 | 12/14/18 | 107,545 | ||||||||||||||
Goldman Sachs Bank USA |
JPY | 247,184 | USD | 2,199 | 12/14/18 | 1,336 | ||||||||||||||
Goldman Sachs Bank USA |
USD | 2,536 | JPY | 279,522 | 12/14/18 | (49,932 | ) | |||||||||||||
Goldman Sachs Bank USA |
USD | 2,815 | MXN | 54,520 | 12/14/18 | (147,817 | ) | |||||||||||||
JPMorgan Chase Bank, NA |
EUR | 4,109 | USD | 4,767 | 12/14/18 | 96,300 | ||||||||||||||
Morgan Stanley & Co., Inc. |
PEN | 47,835 | USD | 14,288 | 11/15/18 | 105,133 | ||||||||||||||
Morgan Stanley & Co., Inc. |
EUR | 3,837 | USD | 4,480 | 12/14/18 | 118,456 | ||||||||||||||
Morgan Stanley & Co., Inc. |
HKD | 62,604 | USD | 7,989 | 12/14/18 | (5,001 | ) | |||||||||||||
Morgan Stanley & Co., Inc. |
SEK | 73,571 | USD | 8,198 | 12/14/18 | 127,315 | ||||||||||||||
Morgan Stanley & Co., Inc. |
USD | 19,414 | AUD | 27,246 | 12/14/18 | (111,361 | ) | |||||||||||||
Morgan Stanley & Co., Inc. |
USD | 10,366 | EUR | 8,949 | 12/14/18 | (192,912 | ) | |||||||||||||
Morgan Stanley & Co., Inc. |
USD | 27,474 | GBP | 21,029 | 12/14/18 | (539,454 | ) | |||||||||||||
Morgan Stanley & Co., Inc. |
USD | 48,361 | JPY | 5,355,764 | 12/14/18 | (734,529 | ) |
Counterparty |
Contracts to Deliver (000) |
In Exchange For (000) |
Settlement Date |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||||
Natwest Markets PLC |
CHF | 4,176 | USD | 4,242 | 12/14/18 | $ | 78,818 | |||||||||||||||||
Standard Chartered Bank |
KRW | 2,729,010 | USD | 2,409 | 11/15/18 | 17,333 | ||||||||||||||||||
Standard Chartered Bank |
USD | 1,978 | PHP | 106,550 | 12/11/18 | 14,977 | ||||||||||||||||||
Standard Chartered Bank |
USD | 12,630 | TWD | 386,505 | 12/11/18 | (110,386 | ) | |||||||||||||||||
Standard Chartered Bank |
JPY | 295,616 | USD | 2,654 | 12/14/18 | 25,444 | ||||||||||||||||||
Standard Chartered Bank |
USD | 1,487 | HKD | 11,618 | 12/14/18 | (3,179 | ) | |||||||||||||||||
State Street Bank & Trust Co. |
CHF | 9,111 | USD | 9,464 | 12/14/18 | 380,209 | ||||||||||||||||||
State Street Bank & Trust Co. |
EUR | 5,536 | USD | 6,438 | 12/14/18 | 145,043 | ||||||||||||||||||
State Street Bank & Trust Co. |
USD | 3,428 | EUR | 2,968 | 12/14/18 | (54,073 | ) | |||||||||||||||||
State Street Bank & Trust Co. |
USD | 1,500 | NOK | 12,435 | 12/14/18 | (21,997 | ) | |||||||||||||||||
UBS AG |
EUR | 9,705 | USD | 11,181 | 12/14/18 | 148,214 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
$ | 3,977,741 | |||||||||||||||||||||||
|
|
(a) | Non-income producing security. |
(b) | Represents entire or partial securities out on loan. |
(c) | Affiliated investments. |
(d) | The rate shown represents the 7-day yield as of period end. |
(e) | To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800) 227-4618. |
(f) | As of October 31, 2018, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $187,477,056 and gross unrealized depreciation of investments was $(54,394,166), resulting in net unrealized appreciation of $133,082,890. |
Please note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard & Poor’s. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the broad market.
Currency Abbreviations:
AUD | - | Australian Dollar | ||
CAD | - | Canadian Dollar | ||
CHF | - | Swiss Franc | ||
EUR | - | Euro | ||
GBP | - | Great British Pound | ||
HKD | - | Hong Kong Dollar | ||
INR | - | Indian Rupee | ||
JPY | - | Japanese Yen | ||
KRW | - | South Korean Won | ||
MXN | - | Mexican Peso | ||
NOK | - | Norwegian Krone | ||
PEN | - | Peruvian Sol | ||
PHP | - | Philippine Peso | ||
RUB | - | Russian Ruble | ||
SEK | - | Swedish Krona | ||
TWD | - | New Taiwan Dollar | ||
USD | - | United States Dollar |
Country Breakdown*
October 31, 2018 (unaudited)
50.8% | United States | |||
6.6% | France | |||
5.4% | Switzerland | |||
5.4% | India | |||
5.2% | Germany | |||
4.2% | Ireland | |||
3.5% | China | |||
3.0% | United Kingdom | |||
2.0% | Denmark | |||
1.9% | Peru | |||
1.9% | Sweden | |||
1.9% | Japan | |||
1.7% | Hong Kong | |||
3.5% | Other | |||
3.0% | Short-Term | |||
|
|
|||
100.0% | Total Investments | |||
|
|
* | All data are as of October 31, 2018. The Fund’s country breakdown is expressed as a percentage of total investments and may vary over time. “Other” country weightings represent 1.3% or less in the following countries: Austria, Indonesia, Netherlands and Philippines. |
AB Sustainable Global Thematic Fund
October 31, 2018 (unaudited)
In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices in active markets for identical investments |
• | Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, by pricing vendors, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2018:
Investments in Securities: |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: |
| |||||||||||||||
Common Stocks: |
||||||||||||||||
Health Care |
$ | 131,497,108 | $ | 59,942,198 | $ | – 0 | – | $ | 191,439,306 | |||||||
Financials |
64,061,933 | 91,843,679 | – 0 | – | 155,905,612 | |||||||||||
Information Technology |
94,516,188 | 40,082,447 | – 0 | – | 134,598,635 | |||||||||||
Industrials |
59,826,486 | 64,125,869 | – 0 | – | 123,952,355 | |||||||||||
Consumer Discretionary |
70,641,983 | – 0 | – | – 0 | – | 70,641,983 | ||||||||||
Consumer Staples |
18,714,311 | 48,968,127 | – 0 | – | 67,682,438 | |||||||||||
Utilities |
25,919,885 | 22,296,968 | – 0 | – | 48,216,853 | |||||||||||
Materials |
24,013,767 | 11,952,575 | – 0 | – | 35,966,342 | |||||||||||
Communication Services |
17,035,578 | 8,085,185 | – 0 | – | 25,120,763 | |||||||||||
Real Estate |
13,426,055 | 5,314,848 | – 0 | – | 18,740,903 | |||||||||||
Short-Term Investments |
27,011,255 | – 0 | – | – 0 | – | 27,011,255 | ||||||||||
Investments of Cash Collateral for Securities Loaned in Affiliated Money Market Fund |
4,630,214 | – 0 | – | – 0 | – | 4,630,214 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
551,294,763 | 352,611,896 | (a) | – 0 | – | 903,906,659 | ||||||||||
Other Financial Instruments (b): |
||||||||||||||||
Assets: |
||||||||||||||||
Forward Currency Exchange Contracts |
– 0 | – | 6,657,699 | – 0 | – | 6,657,699 | ||||||||||
Liabilities: |
||||||||||||||||
Forward Currency Exchange Contracts |
– 0 | – | (2,679,958 | ) | – 0 | – | (2,679,958 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total (c) |
$ | 551,294,763 | $ | 356,589,637 | $ | – 0 | – | $ | 907,884,400 | |||||||
|
|
|
|
|
|
|
|
(a) | A significant portion of the Fund’s foreign equity investments are categorized as Level 2 investments since they are valued using fair value prices based on third party vendor modeling tools to the extent available. |
(b) | Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value. |
(c) | There were no transfers between any levels during the reporting period. |
The Fund recognizes all transfers between levels of the fair value hierarchy assuming the financial instruments were transferred at the beginning of the reporting period.
The Adviser established the Valuation Committee (the “Committee”) to oversee the pricing and valuation of all securities held in the Fund. The Committee operates under pricing and valuation policies and procedures established by the Adviser and approved by the Board, including pricing policies which set forth the mechanisms and processes to be employed on a daily basis to implement these policies and procedures. In particular, the pricing policies describe how to determine market quotations for securities and other instruments. The Committee’s responsibilities include: 1) fair value and liquidity determinations (and oversight of any third parties to whom any responsibility for fair value and liquidity determinations is delegated), and 2) regular monitoring of the Adviser’s pricing and valuation policies and procedures and modification or enhancement of these policies and procedures (or recommendation of the modification of these policies and procedures) as the Committee believes appropriate.
The Committee is also responsible for monitoring the implementation of the pricing policies by the Adviser’s Pricing Group (the “Pricing Group”) and any third party which performs certain pricing functions in accordance with the pricing policies. The Pricing Group is responsible for the oversight of the third party on a day-to-day basis. The Committee and the Pricing Group perform a series of activities to provide reasonable assurance of the accuracy of prices including: 1) periodic vendor due diligence meetings, review of methodologies, new developments and process at vendors, 2) daily comparison of security valuation versus prior day for all securities that exceeded established thresholds, and 3) daily review of unpriced, stale, and variance reports with exceptions reviewed by senior management and the Committee.
In addition, several processes outside of the pricing process are used to monitor valuation issues including: 1) performance and performance attribution reports are monitored for anomalous impacts based upon benchmark performance, and 2) portfolio managers review all portfolios for performance and analytics (which are generated using the Adviser’s prices).
A summary of the Fund’s transactions in AB mutual funds for the three months ended October 31, 2018 is as follows:
Fund |
Market Value 7/31/18 (000) |
Purchases at Cost (000) |
Sales Proceeds (000) |
Market Value 10/31/18 (000) |
Dividend Income (000) |
|||||||||||||||
Government Money Market Portfolio |
$ | 42,108 | $ | 60,595 | $ | 75,692 | $ | 27,011 | $ | 185 | ||||||||||
Government Money Market Portfolio* |
270 | 18,546 | 14,186 | 4,630 | 39 | |||||||||||||||
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|
|
|
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Total |
$ | 42,378 | $ | 79,141 | $ | 89,878 | $ | 31,641 | $ | 224 | ||||||||||
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* | Investments of cash collateral for securities lending transactions |
ITEM 2. | CONTROLS AND PROCEDURES. |
(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b) There were no significant changes in the registrant’s internal control over financial reporting that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
ITEM 3. | EXHIBITS. |
The following exhibits are attached to this Form N-Q:
EXHIBIT NO. |
DESCRIPTION OF EXHIBIT | |
11 (a) (1) | Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
11 (a) (2) | Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant): AB Sustainable Global Thematic Fund, Inc.
By: | /s/ Robert M. Keith | |
Robert M. Keith | ||
President | ||
Date: | December 24, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Robert M. Keith | |
Robert M. Keith | ||
President | ||
Date: | December 24, 2018 | |
By: | /s/ Joseph J. Mantineo | |
Joseph J. Mantineo | ||
Treasurer and Chief Financial Officer | ||
Date: | December 24, 2018 |