AB launches new low-carbon strategy
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.
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.