Ross Kent
Global asset manager AllianceBernstein’s diversification into the Australian retail market continued when the firm announced that its Global High Income Fund (GHI) had been rated ‘Recommended’ by independent investment research provider Zenith Investment Partners.
The Fund—which is being offered in Australia for the first time—has a track record of more than 16 years in offshore markets. It aims to achieve income returns in excess of the Australian cash rate after fees over the cycle.
“This rating is a significant milestone in executing our diversification into the Australian retail investment market,” said Ross Kent, Executive Director at AllianceBernstein Australian Ltd.
The Fund invests into predominantly sub-investment grade (high-yield) corporate debt as well as emerging market sovereign and corporate debt. Zenith noted in its rating report that the Fund also has a relatively wide mandate and invests in high-yielding securities in other fixed-interest sectors.
“From a portfolio perspective, the Fund may be suitable as a component in the income portion of a well-diversified portfolio. The Fund is considered appropriate as a satellite exposure to global fixed interest and for blending with domestic fixed-interest strategies to produce a more balanced set of investment outcomes,” the research firm said.
“We believe the Fund is suited to investors who, in an environment of low cash rates, want to improve the income generating capacity of their portfolio,” said Kent, who noted that the strategy had raised more than US$22 billion from investors globally since 1997.
“We also expect that it will be of interest to investors who are willing to substitute some of their overweight in domestic or global equities towards return-seeking fixed-income assets.”