Bernstein brings local value to AXA
US fund manager Bernstein plans to set up a local fund management team to look after Australian equities.
The company, part ofAXA, is launching an Australian equities value fund, which will join the global equities value fund available in Australia since last year.
AXA chief investment officer Mick O’Brien says the move enables the company to offer both growth and value Australian equity funds. The growth fund is provided by another AXA manager, Alliance.
“Fund management is a global business and we have the capabilities to bring global strength to the local market,” he says.
“However, some things such as distribution remain local, although we will now be building the Bernstein brand here.”
Stuart Rae, who was recently a senior research analyst with Bernstein in London, will head up the new Australian equities team in Sydney. A further three analysts will be recruited locally.
O’Brien says the Sydney operation will be fully integrated with Bernstein’s global research teams which share research with Alliance. However, the portfolio managers will operate separately from Alliance.
The new Bernstein fund will be sold through AXA dealer groups, but the company is also looking for distribution among independent advisers and master trusts.
“Bernstein is well-regarded in wholesale markets, but there will be a bigger push on both Alliance and Bernstein in the retail markets,” O’Brien says.
“We are already seeing early signs of success as we demonstrate the capabilities of the two managers to financial planners.”
The fund manager’s recently launched Global Equity Value Fund now has more than $100 million of funds under management.
While there are no firm plans at present to increase Bernstein’s product range in Australia, other global equity products are being considered.
“These could include small caps and some global property securities,” O’Brien says.
“Also we are looking at how to blend growth and value funds into AXA balanced equity funds.”
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
