AllianceBernstein has launched the AB Alternative Risk Premia Portfolio offering institutional investors a way of accessing alternative sources of return in a systematic and cost effective manner.
The strategy is designed to provide a low correlation from traditional asset classes with relative attractive returns. The fund launches with over EUR 200 million/ GBP190 million of investments from clients.
The portfolio’s multi-strategy approach allocates to more than fifty alternative risk premia strategies including long/short equity, equity market neutral, event driven, macro, and CTA/managed futures. Portfolio Managers Stuart Davies (pictured), and Vikas Kapoor have over 23 years of industry experience, including seven years focused on investing in alternative risk premia. The new portfolio makes their strategy available in a Luxembourg registered UCITS structure with daily liquidity.
Stuart Davies commented: “The alternative industry has fundamentally changed since 2008 offering more efficient investment techniques to implement an alternatives portfolio. Our fund is designed to harness this evolution for investors. It is based on rigorous academic and empirical research which, we believe, enables investors to systematically access alternative risk premia in a cost-efficient way.”
Nitish Sharma, Head of UK Institutional Client Group at AllianceBernstein added “With the return outlook remaining low, clients are looking to diversify away from traditional asset classes and seeking alternative sources for their portfolios. Given the breadth of the investable universe, we believe this fund can serve as investors’ alternative allocation or compliment their existing style risk premia, in a liquid and cost effective manner.”
