In response to continued investor demand for emerging market exposure, AllianceBernstein has launched a multi-asset strategy offering exposure to these regions.
The Emerging Market Multi-Asset (Emma) strategy aims to capture a wide spectrum of emerging-market opportunities by taking advantage of all the asset classes available. The firm said this new approach addresses the dilemma of increasing overall portfolio risk when upping exposure to emerging markets.
According to AllianceBernstein the goal of its Emma strategy is to achieve equity-like returns with lower volatility— potentially muting the impact of increased allocations on overall portfolio risk for investors.
The firm will use active asset allocation to adjust the fund's exposure to the different asset classes according to current market risks and opportunities. Therefore the strategy will have a more aggressive approach when market conditions are favourable conditions, by holding more equities and will reduce exposure when risks are more apparent.
Morgan Harting, senior portfolio manager and emerging markets multi-asset team leader said: “Emerging markets represent a considerable – and growing - proportion of the world economy and offer significant return potential. However, traditional all-equity approaches are not best designed to minimise unwanted surprises. Emma will aim to capture these investment opportunities whilst seeking to reduce undesirable volatility and offer an optimal risk/return profile unconstrained by naïve benchmarks or investment instruments.”
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