The non-US mutual fund arm of Alliance Capital Management, ACM International, has launched a global ...
The non-US mutual fund arm of Alliance Capital Management, ACM International, has launched a global wealth strategy that is designed for investors who have different risk tolerances but the same goal.
This new product line will give investors access to investment disciplines modelled on the Alliance Capital Management private client wealth management unit Bernstein.
Global Wealth Strategies comprises three distinct portfolios, each targeting a different combination of risk and return while featuring a high level of diversification across asset classes. The Global Conservative Portfolio consists of 70% bonds and 30% stocks, the Global Balanced Portfolio consists of 40% bonds and 60% stocks and the Global Equity Blend Portfolio consists of 50% growth and 50% value. Rebalancing of the portfolios is a key feature of the product.
Kurt Schoknecht, CEO at ACM International, said: "A disciplined approach to rebalancing is what leads to successfully 'buying low and selling high,' yet our instincts tell us to do just the opposite. A rebalancing discipline that ensures a portfolio is never inadvertently style or asset class driven can help provide a pattern of consistent returns over time. We have identified a genuine need for a range of products that are constructed with low correlation and built to weather a variety of market conditions. For nearly a year, we have worked with many of our distributors around the world to understand the best positioning of these new portfolios for investors. Banks, securities brokerages and insurance companies have all expressed strong interest in this approach.
"The products are available for a number of different investor types. For example, very HNWIs may choose to invest a portion of their holdings in our all equity portfolio to gain the advantage of our blending discipline. Smaller accounts would benefit from moving a greater percentage of assets into one of our two balanced portfolios."
The Global Wealth Strategies will be distributed under the ACM Global Investments umbrella of its Luxembourg-domiciled family of funds. The three new portfolios join an existing range of more than 30 Luxembourg-domiciled funds.
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