AllianceBernstein launches Active Emerging Market ETF on TMX Australia Exchange

Sammy Suzuki

AllianceBernstein (AB) has announced the launch of the AB Emerging Markets Strategic Core Equities Fund – Active ETF (CXA: MORE), providing Australian investors with exchange-traded access to AB’s Emerging Markets Strategic Core strategy. The listing marks the latest step in the continued build-out of AB’s active ETF platform in Australia.

The ETF is built on AB’s established Strategic Core framework, first launched in 2012 and managed since inception by Sammy Suzuki, Head of Emerging Markets Equities, alongside Co-Chief Investment Officer Denise Boynton. Together they bring more than five decades of emerging markets investment experience. The strategy seeks to provide core exposure to the long-term growth potential of emerging-markets equities while aiming to capture around 90% of market upside and roughly 70% of the downside over the long term.

Managing Director of the Australian Client Group, Ben Moore, said the listing reflected AB’s commitment to broadening access to its global capabilities for local investors.  “The build-out of our active ETF platform remains a key plank in our Australian distribution strategy. Following the listing of our Global Strategic Core Equities ETF earlier this year, adding an emerging-markets strategy gives investors another high-quality, actively managed building block in a convenient, transparent and liquid vehicle,” Mr Moore said.

“Emerging markets represent one of the most compelling long-term growth opportunities available today, yet many investors remain underallocated because of concerns around volatility and drawdowns. This strategy has been designed to address exactly that challenge,  pairing a proven lower volatility investment framework that protects the downside while providing the potential for long term capital growth with the accessibility of an ETF,” he said.

Sammy Suzuki, Head of Emerging Markets Equities, said the opportunity in emerging markets had evolved well beyond the perceptions many investors still hold. “Emerging markets are no longer simply a China story. Emerging economies now drive the majority of global GDP expansion, and that growth is often available at a meaningful valuation discount, supported by stronger balance sheets, deeper capital markets and improved governance. EM is also a key part of the AI opportunity, a theme too often viewed through a developed-market lens alone.”

AB believes this backdrop, combined with its downside-aware approach, makes the strategy a timely addition for investors building diversified, long-term portfolios.

“Our philosophy is built on Quality, Stability and Price. By combining fundamental research with quantitative risk management,  an approach we call ‘quantamental’, we aim to own high-quality, stable companies at a sensible price. That is how we seek to beat the market by losing less, giving investors a smoother path to participate in emerging-markets growth over the long run.  We call this winning by not losing,” said Mr Suzuki.