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.
AUTHOR
Oksana Patron
Recommended for you
Two Australian active fund managers have been singled out by Morningstar for their ability to achieve consistent performance and share price growth in the past 12 months.
Pinnacle Investment Management has expanded its private market coverage, forging a strategic partnership with a private markets manager via a 13 per cent stake acquisition.
Active fund managers without a strong distribution platform will be “left behind”, believes Magellan, as it pivots its business away from being a traditional asset manager.
Ethical investment manager Australian Ethical has announced the appointment of Anthony Lane as chief operating officer.
