AXA group’s subsidiary AllianceBernstein has launched the AB Alternative Risk Premia Portfolio aimed to provide institutional investors with access to alternative sources of return with low correlation from traditional asset classes.
The fund was launched with over €200m of assets. 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.
It is managed by Stuart Davies and Vikas Kapoor who have been focused on alternative risk premia investments for seven years. The fund is available in a Luxembourg-domiciled Ucits structure with daily liquidity.
Davies said: “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, argued: “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.”
AllianceBernstein had $549bn (€457.6bn) of assets under management as of 30 November 2017.