NEW YORK, April 3, 2013 /PRNewswire/ -- AllianceBernstein announced today that its suite of four inflation-protected and income-generating funds -- AllianceBernstein High Income Municipal Portfolio, AllianceBernstein Municipal Bond Inflation Strategy, AllianceBernstein Real Asset Strategy Fund and AllianceBernstein Bond Inflation Strategy Fund -- are celebrating their three-year anniversaries this quarter with continued asset growth, industry recognition and strong relative performance. The suite of products, which have attracted nearly $3 billion in assets since inception, was specifically developed to meet clients' increasing demand for investment vehicles that could mitigate risk, protect against spikes in inflation and generate tax-exempt income.
"The success of these funds comes as a result of our commitment to developing investment products that address our clients' evolving needs and the new economic challenges they face. Several years ago, we committed to introducing investment products that enable advisors to more effectively manage inflation risk and the need for income -- so we created funds like Municipal Bond Inflation, High Income Municipal, Real Asset Strategy and Bond Inflation," said Harold Hughes, Head of AllianceBernstein's US Retail business. "Our High Income Municipal Fund has been the most successful new muni fund launch of the last three years, and the level of interest and new assets our Municipal Bond Inflation Fund has attracted shows that our client-centric approach and focus on delivering strong performance are being well received by investors."
The following US Retail funds recently reached the three-year mark:
- AllianceBernstein High Income Municipal Portfolio (ABTHX and ABTFX) advisor share class, as well as the A and C share classes, was awarded high industry rankings after achieving a three-year track record. The fund ranks in the top quartile for the one- and three-year periods and since inception among its Lipper High Yield Municipal Debt Funds peers. With annualized returns of 10.71%, the fund has outperformed its benchmark and peers since inception, and has gathered more than $1 billion in assets.
- AllianceBernstein Municipal Bond Inflation Strategy (AUNAX and AUNCX) advisor share class, as well as the A and C share classes, was awarded high industry rankings after achieving a three-year track record. The fund, a diversified portfolio with a focus on total return less the effect of inflation, has generated annualized returns of 4.02% since inception and has gathered nearly $700 million in assets.
- AllianceBernstein Real Asset Strategy Fund (AMTAX) targets "real assets" (real estate, energy, metals and agriculture) that are expected to hold their value during periods of rising inflation. With annualized returns of 6.01% since inception, the fund has outperformed its benchmark since inception, and has gathered $400 million in assets.
- AllianceBernstein Bond Inflation Strategy Fund (ABNAX) is a bond alternative to traditional Treasury Inflation-Protected Securities (TIPS) funds that offers a "TIPS-plus" portfolio mix of TIPS, corporate bonds and other types of bonds. The strategy would protect against inflation if yields were to rise. The fund has outperformed its benchmark since inception, with annualized returns of 6.03%, and has gathered $300 million in assets.
The three-year US fund anniversaries mark continued momentum and demand for AllianceBernstein's new client-focused offerings across the globe. Since 2009, the firm has launched 71 new Retail offerings that have collectively gathered more than $26 billion in new assets. Fixed-income performance and innovation have been key drivers of the firm's global asset growth, with 89% of fixed-income assets in services outperforming their benchmarks for the three-year period through December 31, 2012.
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 December 31, 2012, AllianceBernstein Holding L.P. owned approximately 37.9% of the issued and outstanding AllianceBernstein Units, and AXA, one of the largest global financial-services organizations, owned an approximate 65.5% economic interest in AllianceBernstein.
Additional information about AllianceBernstein may be found on our website, www.alliancebernstein.com.
Lipper rankings and returns quoted in release are as of 2/28/2013, Class Asharesexcluding maximum sales charges. Lipper rankings are based on total returns at net asset value, without the imposition of a sales charge, which would reduce total return figures.
Lipper averages represent the average returns of funds contained in the Lipper universe. Funds in the Lipper averages generally have similar investment objectives to the Funds, although some may have different investment policies.
Average annual total returns as of December 31, 2012, with sales charges, are as follows:
High Income Municipal Portfolio -- ABTHX, A Shares with Max 3.0% Sales Charge
Since Inception (1/26/10): 9.70%
AllianceBernstein Municipal Bond Inflation Strategy -- AUNAX, A Shares with Max 3.0% Sales Charge
Since Inception (1/26/10): 3.06%
AllianceBernstein Real Asset Strategy Fund -- AMTAX, A Shares with Max 4.25% Sales Charge
Since Inception (3/8/2010): 4.79%
AllianceBernstein Bond Inflation Strategy Fund -- ABNAX, A Shares with Max 3.0% Sales Charge
Since Inception (1/26/10): 4.79%
The performance shown above represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.alliancebernstein.com. The investment return and principal value of an investment in the Portfolio will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. Returns for other share classes will vary due to different charges and expenses. Performance assumes reinvestment of distributions and does not account for taxes. Please keep in mind that high, double-digit returns are highly unusual and cannot be sustained. Investors should also be aware that these returns were primarily achieved during favorable market conditions.
Net Expense Ratio reflects the Advisor's contractual waiver of a portion of its advisory fee and/or reimbursement of a portion of each Fund's operating expenses. This waiver and/or reimbursement extends through 1/31/2014, as specified in the Fund's current prospectus, and may be further extended or terminated by the Advisor as set forth in the prospectus. Absent waivers and/or reimbursements, performance would have been lower.
Investors should consider the investment objectives, risks, charges and expenses of each 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.
Investment Risks to Consider:
Market Risk: The market values of the portfolio's holdings rise and fall from day to day, so investments may lose value. 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. Commodity Risk: Commodity-linked investments may experience greater volatility than investments in traditional securities. The value of commodity-linked investments may be affected by financial factors, political developments and natural disasters. 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. 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. 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. Inflation Risk: Prices for goods and services tend to rise over time, which may erode the purchasing power of investments. 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. Leverage Risk: Trying to enhance investment returns by borrowing money or using other leverage tools -- magnifying both gains and losses, resulting in greater volatility. Liquidity Risk: The difficulty of purchasing or selling a security at an advantageous time or price. Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. Municipal-Market Risk: Debt securities issued by state or local governments may be subject to special political, legal, economic and market factors that can have a significant effect on the portfolio's yield or value. Real Estate Risk: The Fund's investments in the real estate market have many of the same risks as direct ownership of real estate, including the risk that the value of real estate could decline due to a variety of factors that affect the real estate market generally. Investments in REITs may have additional risks. REITs are dependent on the capability of their managers, may have limited diversification and could be significantly affected by changes in tax laws.
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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