AllianceBernstein’s new absolute return offering shuns emerging markets

AllianceBernstein’s new European absolute return equity fund is heavily biased to developed markets.


The company yesterday formally announced the launch of its European Flexible Equity Portfolio. The fund went live on 31 January, seeded with €3.7m.

As of the end of March, it allocated 53% of its assets to the Eurozone equities of 53%, 38% in developed Europe 38% with just 1% in emerging markets.

The fund’s managers, Michele Patri, Chad Gex and William Johnston, are able to invest up to 20% outside Europe. It currently holds 9% in ‘other’ equities.

The portfolio is biased toward defensive and cyclical sectors, investing in strong asset growth stories and companies with little balance sheet or regulatory risk. It also reflects the firm’s current favoured themes of strong growth in satellite demand driven mainly by HDTV and 3DTV, cyclical sectors where supply growth is constrained, and financials.