US manager Alliance Capital Management, known primarily for its growth-oriented investment style, is...
US manager Alliance Capital Management, known primarily for its growth-oriented investment style, is set to launch a range of Luxembourg-based value funds using the expertise of Bernstein Asset Management.
The new vehicles, scheduled for launch this month, will cover US, Global and Europe value markets.
Kurt Schoknecht, CEO of Alliance Capital Management International, said: "These new funds will line up in our offshore range alongside US, European and Global growth funds. The clear message to investors is the importance of diversification within overall portfolios."
The new funds will use the skills of Bernstein Asset Management, bought by Alliance last October. Schoknecht said: "Bernstein is well-known in the US market and in the non-US institutional market as a value-oriented manager but it is little known in the European intermediary market. We aim to build up the brand gradually and these new fund offerings are the first step in that process.
"We have long intended to offer some more value-based products within our overall range, and it just happens that the timing of these launches is also fortuitous in terms of the way markets are heading."
ACM Bernstein European value will be managed by Bernstein manager Sharon Faye, while the Global fund will be managed by Bernstein's Peter Adelson. The US-value fund will be a clone of Alliance Growth & Income, a value-oriented fund that Alliance Capital has run in the US for some years. It will be managed by Paul Rhissman.
Sxhoknecht said: "We are certainly not forsaking the growth approach for which we are well known but we believe this latest offering will give our clients the opportunity to structure their overall portfolios in a way that can take account of the cyclical nature of market movements."
He sees strong potential for the new funds from European investors, who he believes are becoming increasingly sophisticated in the way they are structuring their portfolios.
He added: "This is partly being fuelled by the background of pension systems becoming increasingly privatised, which is forcing savers to become investors. We think equity investing in Europe is set to grow and this is our biggest target market outside of the US."
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