AllianceBernstein to Launch Multi-Manager Target-Date Series Co-managed with Morningstar Associates AQR, Franklin Templeton, MFS & PIMCO Join AllianceBernstein in All-Star Cast of Fund Managers
NEW YORK, Aug. 14, 2014 /PRNewswire/ -- The information in this material is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This material is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted. (Or similar as to red herring)
AllianceBernstein L.P. (AllianceBernstein), a global investment management firm with $477 billion in assets under management, today announced that it will launch a multi-manager target-date series, AllianceBernstein Multi-Manager Select Retirement Funds, to be co-managed with Morningstar Associates, LLC, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. The new series will invest in funds managed by leading investment managers in addition to AllianceBernstein, including AQR, Franklin Templeton, MFS and PIMCO.
By providing independent selection of funds from highly regarded investment managers in one portfolio, the new multi-manager target-date series addresses issues that the U.S. Department of Labor (DOL) has identified in its "Tips for ERISA Plan Fiduciaries," noting that non-proprietary target-date funds could offer advantages to plan participants by diversifying their exposure to investment providers.
"The landscape for target-date portfolio design and construction has evolved over the past decade and we've spent that time building defined contribution products of the future at AllianceBernstein," said Daniel Loewy, Chief Investment Officer and Co-Head of AllianceBernstein's Multi-Asset Solutions team. "Today, we have access to new asset classes and tools to solve some of the challenges presented by the traditional target-date approach. With this fund series, we can provide investors with access to funds from high-quality managers through Morningstar Associates' independent investment selection process, and deliver a better target-date design to plan sponsors and participants by working with our industry peers."
The new series will also incorporate a broad range of asset classes, including those that seek to provide diversification to stocks and bonds, with the aim of delivering more consistent results and mitigating short-term risk. AllianceBernstein will design and manage the glide path, adjusting asset-class exposures as market conditions change, and provide overall program oversight. Morningstar will select funds from the broad offerings of each participating firm.
"Very few firms have good funds in every category," said Scott Wentsel, Chief Investment Officer, Americas, Morningstar Investment Management group. "Being able to select funds from a number of high-quality asset managers expands the opportunity set and increases our potential to improve investor outcomes."
"With the DOL now suggesting that plan sponsors consider non-proprietary and custom solutions, funds accessing multiple investment managers may address concerns of plan sponsors and may provide plan participants with a greater likelihood of better outcomes," added Richard Davies, Head of Defined Contribution and Co-Head of North America Institutional at AllianceBernstein. "We already manage more than $21 billion in custom target-date portfolios for large defined contribution plans and we will continue to design offerings for plans of all sizes that assist sponsors and their advisors with their evolving needs."
The funds are expected to be available for purchase by early November 2014.
AllianceBernstein is a leading global investment management firm that offers high-quality research and diversified investment services to institutional investors, individuals and private clients in major world markets.
As of June 30, 2014, AllianceBernstein Holding L.P. owned approximately 36.0% of the issued and outstanding AllianceBernstein Units and AXA, one of the largest global financial services organizations, owned an approximate 63.6% economic interest in AllianceBernstein.
Additional information about AllianceBernstein may be found on our internet site, www.alliancebernstein.com/go/mms.
About AllianceBernstein's Multi-Asset Solutions Group
AllianceBernstein's Multi-Asset Solutions Group is a dedicated team of more than 25 investment professionals that utilizes its deep capital markets expertise, research insights and a full range of risk/return sources as building blocks to create integrated multi-asset investment solutions tailored to the needs of each client. These include glide path strategies like target-date and lifetime income solutions for defined contribution plans, asset allocation strategies and solutions targeting unique market index and factor exposures.
About Morningstar Associates, LLC
Morningstar Associates, LLC is a registered investment adviser and wholly owned subsidiary of Morningstar, Inc. It is part of the Morningstar Investment Management group, which creates custom investment solutions that combine award-winning research and global resources with proprietary Morningstar data. With approximately $169 billion in assets under advisement and management as of June 30, 2014, the Morningstar Investment Management group provides comprehensive retirement, investment advisory, and portfolio management services for financial institutions, plan sponsors, and advisors around the world.
A Word About Risk
The value of your investment in the Fund will change with changes in the values of the Fund's investments in the Underlying Funds. There is no assurance that the Fund will provide an investor with adequate income at or through retirement.
Allocation Risk: The allocation of investments among the Underlying Funds' different investment styles, such as equity or debt securities, or US or non-US securities, may have a more significant effect on the Fund's net asset value ("NAV") when one of these investments is performing more poorly than the other. There is no assurance that allocation decisions will result in the desired effects. Subjective decisions made by the Adviser and/or Morningstar may cause the Fund to incur losses or to miss profit opportunities on which it might otherwise have capitalized. Market Risk: The value of the Fund's investments will fluctuate as the stock or bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market. It includes the risk that a particular style of investing may be underperforming the stock market generally. Interest Rate Risk: Changes in interest rates will affect the value of the Fund's investments in Underlying Funds that invest in fixed-income securities. When interest rates rise, the value of investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments by Underlying Funds in fixed-income securities with lower ratings are subject to a higher probability that an issuer will default or fail to meet its payment obligations. Inflation Risk: This is the risk that the value of assets or income from the Fund's investments in the Underlying Funds will be less in the future as inflation decreases the value of money. As inflation increases, the value of each Underlying Fund's assets can decline as can the value of that Underlying Fund's distributions. Foreign (Non-US) Risk: Investments in non-US issuers by Underlying Funds may involve more risk than investments in US issuers. These securities may fluctuate more widely in price and may be less liquid due to adverse market, economic, political, regulatory or other factors. Emerging Market Risk: Investments by Underlying Funds in emerging market countries may involve more risk than investments in other foreign countries because the markets in emerging market countries are less developed and less liquid as well as subject to increased economic, political, regulatory and other uncertainties. Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund's investments or reduce its returns. Capitalization Risk: Investments in small- and mid-capitalization companies by Underlying Funds tend to be more volatile than investments in large-capitalization companies. Investments in small-capitalization companies may have additional risks because these companies often have limited product lines, markets, or financial resources. Derivatives Risk: Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses, and may be subject to counterparty risk to a greater degree than more traditional investments. Leverage Risk: Borrowing money or other leverage may make an Underlying Fund's investments more volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of its investments. An Underlying Fund may create leverage through the use of certain portfolio management techniques such as reverse repurchase agreements or forward commitments, or by borrowing money. Diversification Risk: The Fund may have more risk because it is "non-diversified", meaning that it can invest more of its assets in a smaller number of issuers. Management Risk: The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser and Morningstar will apply their investment techniques and risk analyses in making investment decisions for the Fund, but there is no guarantee that their techniques will produce the intended results.
As with all investments, you may lose money by investing in the Fund.
Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.alliancebernstein.com or contact your AllianceBernstein Investments representative. Please read the prospectus and/or summary prospectus carefully before investing.
AllianceBernstein Investments, Inc. (ABI) is the distributor of the AllianceBernstein family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the manager of the funds.
AllianceBernstein¨ and the AB logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein L.P.
© 2014 AllianceBernstein L.P.