Opalesque Industry Update - AllianceBernstein announced the launch of its Enhanced Alpha product, AllianceBernstein Alternative Investments—Enhanced Alpha Portfolio, a UCITS fund for institutional clients. The Fund’s strategy is a relative-value fixed-income strategy with an absolute return goal of 8 to 10% per annum net of fees. It uses a wide range of trading strategies to exploit structural anomalies and tactical investment opportunities in multiple global sectors with the objective of boosting returns with low correlation-to-market returns and various asset classes. |
Although signs of recovery abound, uncertainty persists about the global economic outlook and markets remain highly volatile. While offering higher return potential than traditional fixed-income allocations, the Enhanced Alpha fund deploys hedging strategies, a stop-loss framework and dynamic tail-risk hedging to protect returns during periods of severe market stress. Derivative-based implementation also provides high liquidity and flexibility.
Ivan Rudolph-Shabinsky, Director - Fixed Income, commented:
“We feel that this is the perfect time to be launching a product like this onto the market. The roller coaster ride over the last couple of years has switched the focus of investors to rebuilding returns while avoiding extreme negative outcomes.
“Enhanced Alpha uses a combination of bonds and derivatives to exploit opportunities such as disparities in the shape of global yield curves and anomalous relationships between bonds and credit default swaps around the world, while ensuring that we hedge risks in the cheapest, most efficient manner.”
The Fund is a Luxembourg-domiciled UCITS fund with a minimum investment of £1.5 million.
At September 30, 2010, AllianceBernstein Holding L.P. owned approximately 36.7% of the issued and outstanding AllianceBernstein Units and AXA, one of the largest global financial services organizations, owned an approximate 63.0% economic interest in AllianceBernstein. Corporate website: www.alliancebernstein.com