AllianceBernstein Expands its Liquid Alternatives Platform with Three New Funds: Credit Long/Short, Multi-Manager Alternative Strategies and Long/Short Multi-Manager
Continues Digital Education Campaign for Liquid Alternatives with Enhanced Learning Center
NEW YORK, Oct. 15, 2014 /PRNewswire/ -- AllianceBernstein L.P. (AllianceBernstein), announced today it has launched three new liquid alternative mutual funds, Credit Long/Short (ALASX), Multi-Manager Alternative Strategies Fund (ALATX) and Long/Short Multi-Manager Fund (LSAMX), as it continues to broaden its array of U.S. retail offerings.
These three new mutual funds represent the next phase of opportunity for AllianceBernstein's rapidly growing $19 billion alternatives platform. One notable success driver to date has been Select US Long/Short (ASLAX), managed by Kurt Feuerman. The Select US Long/Short mutual fund has raised more than $1.8 billion in assets since launching in December 2012 and ranked fourth in year-to-date 2014 flows in its category according to Morningstar Direct.
"Our liquid alternative strategies are resonating with investors because we're providing them access to highly specialized funds run by leading institutional managers, yet with daily liquidity, transparency and risk management," said Robert Keith, Head of AllianceBernstein's Client Group. "We launched Credit Long/Short and our Multi-Manager strategies to respond to our clients' demand for services that offer diversification from traditional stocks and bonds, while reducing sensitivity to equity and interest rate movements."
Leveraging the expertise of AllianceBernstein's credit investment team, which manages more than $130 billion in assets and integrated global credit research platform, Credit Long/Short seeks capital preservation and low correlation to traditional asset classes, with the goal of achieving strong relative returns in rising rate environments, as well as a relatively modest drawdown experience in more challenged markets. The Fund will be invested globally in credit-related instruments such as investment grade, high yield, emerging markets, floating-rate loans, and securitized assets, and looks to manage interest rate risk by dynamically shifting duration: -3 and +3 years. The Fund will be managed by Ashish Shah, Global Head of Credit, Gershon M. Distenfeld, Director of High Yield, and Sherif M. Hamid, High Yield portfolio manager.
AllianceBernstein's Multi-Manager Alternative Strategies Fund (ALATX) and Long/Short Multi-Manager Fund (LSAMX) leverage the expertise of the firm's $12 billion Alternative Investment Management Group. Led by Marc Gamsin and Greg Outcalt, the team has been managing multi-manager hedge fund and private equity portfolios for institutional clients and high net worth individuals since 1996. These Funds seek attractive risk-adjusted returns with lower volatility than that of equity markets and less sensitivity to stock and bond market movements than traditional investments.
The AllianceBernstein Multi-Manager Alternative Strategies Fund deploys investments across four strategies: Long/Short Equity, Special Situations, Credit and Global Macro, and seeks to diversify exposure to quality top-tier managers within each strategy. The AllianceBernstein Long/Short Multi-Manager Fund is a diversified portfolio of high quality alternative long/short equity investment managers. Manager selection and portfolio construction will leverage a similar institutional-quality investment process that has driven the team's hedge fund portfolios since inception.
Thought Leadership and Digital Education Campaign Continues with New Online Alternative Investing Resources
Last year, AllianceBernstein launched its first digital education campaign to equip financial advisors with the right tools to help their clients navigate the growing liquid alternative investments category. AllianceBernstein will continue its digital education campaign with the launch of ALASX, ALATX and LSAMX, introducing an enhanced interactive website designed to demystify the array of liquid alternative strategies available to retail investors and clarify how they might fit into diversified portfolios. Available tools include a new infographic on alternative strategies to consider that may do well in a rising rate environment, a product tool with information on the newly launched funds and an enhanced learning center with information on how liquid alternatives work.
Advisors and individual investors can view the site and test their alternative investment IQ at: www.alliancebernstein.com/go/alternatives
Investors can also refer to AllianceBernstein's recent white paper, Liquid Alternatives: The Next Dimension in Asset Allocation, for greater insight into the investment category. The objective of the paper was to educate investors on this fast growing area to help them build more diversified portfolios through a more outcome-oriented framework.
About AllianceBernstein
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.
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.
Word About Risk
Market Risk: The market values of the portfolio's holdings rise and fall from day to day, so investments may lose value.
Interest Rate Risk: As interest rates rise, bond prices fall and vice versa—long-term securities tend to rise and fall more than short-term securities.The values of mortgage-related and asset-backed securities are particularly sensitive to changes in interest rates due to prepayment risk.
Credit Risk: A bond's credit rating reflects the issuer's ability to make timely payments of interest or principal—the lower the rating, the higher the risk of default.
If the issuer's financial strength deteriorates, the issuer's rating may be lowered and the bond's value may decline.
Inflation Risk: Prices for goods and services tend to rise over time, which may erode the purchasing power of investments.
Foreign (Non-US) Risk: Non-US securities may be more volatile because of political, regulatory, market and economic uncertainties associated with such securities. Fluctuations in currency exchange rates may negatively affect the value of the investment or reduce returns. These risks are magnified in emerging or developing markets.
Derivatives Risk: Investing in derivative instruments such as options, futures, forwards or swaps can be riskier than traditional investments, and may be more volatile, especially in a down market.
Active tracing Risk: A higher rate of portfolio turnover increases transaction costs, which may negatively affect portfolio returns and may result in substantial short-term gains, which may result in adverse tax consequences for shareholders.
Leverage Risk: Trying to enhance investment returns by borrowing money or using other leverage tools—magnify both gains and losses, resulting in greater volatility.
Below Investment Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as "junk bonds") tend to have a higher probability that an issuer will default or fail to meet its payment obligations.
Short Sale Risk: The risk that the Portfolio will incur a loss by subsequently buying a security at a higher price than the price at which it sold the security short and the amount of such loss is theoretically unlimited.
Emerging Market Risk: Investments in emerging market countries may have more risk because the markets are less developed and less liquid as well as being subject to increased economic, political, regulatory or other uncertainties.
Diversification Risk: Portfolios that hold a smaller number of securities may be more volatile than more diversified portfolios, since gains or losses from each security will have a greater impact on the portfolio's overall value.
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.
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©2014 AllianceBernstein L.P.
Investment Products Offered:
• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed
SOURCE AllianceBernstein L.P.
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