AllianceBernstein explores carbon-neutral strategy
AllianceBernstein has launched an Australian equities strategy which aims to generate attractive returns while being carbon-neutral, challenging the belief investors need to sacrifice returns for a low carbon footprint.
AB Managed Volatility Equities - Green is based on the firm’s AB Managed Volatility Equities fund, which was launched in 2014, and will look to exploit the low-carbon characteristics of many low-volatility stocks.
It will look to achieve carbon neutrality by constructing a portfolio with emissions 90 per cent lower than the index and will offset the remaining emissions through the retirement of carbon credits. It starts by anchoring the portfolio in low-volatility equities and then applying a ‘price on carbon’ during the stock selection process.
Applying a price on carbon will help to reduce carbon emissions by quantifying the amount of emissions within the portfolio which helps with the efficient retirement of carbon credits.
Roy Maslen, chief investment officer for Australian equities at AllianceBernstein, said: “Green MVE challenges the either/or paradigm and aims to give investors superior performance in terms of both environmental outcomes and investment outcomes.
“We think investors will appreciate not only the potential for positive environmental and investment outcomes, but also the transparent and quantifiable way in which those outcomes are achieved.”
It has already attracted support from the Myer Foundation and the Australian Government’s Clean Energy Finance Corporation.
AUTHOR
Laura Dew
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