AB launches new low-carbon strategy

21 June 2019
| By Oksana Patron |
image
image
expand image

AllianceBernstein has launched an Australian equities strategy, AM Managed Volatility Equities – Green (Green MVE) which aims for low-carbon investing.

The new strategy would be based on the AB Managed Volatility Equities Fund which puts a greater focus on exploiting the typically low-carbon characteristics of many low-volatility stocks.

The new strategy grabbed the attention of the Myer Foundation and the Australian Government’s Clean Energy Finance Corporation (CEFC) which provided an investment commitment of up to $50 million.

“It’s a strategy that combines significant innovations in terms of low-carbon investing with a tried and tested underlying low-volatility investment approach which has been very successful since inception,” said AllianceBernstein’s chief investment officer―Australian equities, Roy Maslen.

The innovations would aim at carbon neutrality by constructing a portfolio with emissions 90 per cent lower than the index and an arrangement to offset the remaining emissions through the retirement of carbon credits.

“We’re offering these environmental objectives together with the investment characteristics of the AB Managed Volatility Equities Fund, which we launched in Australia in April 2014,” he said.

“Since then, the fund has outperformed the index by 4.1 per cent a year,” it said.

The chart below compares the performance of the AB Managed Volatility Equities Fund and the Australian Equities sector since the fund’s inception.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago