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.

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Vic Jokovic

Global asset manager AllianceBernstein (AB) has partnered with Chi-X Australia to make one of its leading funds available to Australian investors via the Chi-X Australia stock exchange.

The AB Managed Volatility Equities Fund (Managed Fund)—MVE Class (AMVE) joins a growing list of funds to commence trading on the Chi-X Australia platform amid strong demand for exchange-traded products.

AMVE is the first equity fund to be quoted on exchange by the AB group.

AllianceBernstein Australia Limited Chief Executive Officer Jen Driscoll said that AMVE had been designed for Australian investors who wanted actively managed equity strategies with lower volatility.

“We are excited to see AMVE now available to a wide range of investors on the Chi-X stock exchange. AB developed AMVE seven years ago in collaboration with a major Australian superannuation fund which wanted to give its members a smoother, but still rewarding, return profile in volatile markets. Our partnership with Chi-X is an opportunity to make this innovative and successful strategy more readily accessible,” she said.

“The launch of AMVE on Chi-X will give more equity investors, including retirees and those transitioning to retirement, the potential benefits of an investment approach which aims to reduce exposure to market drawdowns while participating significantly in market recoveries.”

AMVE aims to achieve returns that exceed the S&P/ASX 300 Accumulation Index after fees over the medium to long term. The Fund invests mainly in Australian listed shares, with up to 20% of its assets in global developed-market shares. It can also hold up to 20% in cash as a short-term defensive measure at times of heightened equity market volatility.

Since inception to the end of February 2021, the fund has delivered a total return after fees of 9.60% with lower volatility, compared to the 7.51% return for the S&P ASX 300 Index.^[1]

AllianceBernstein Managing Director, Australia Client Group, Ben Moore said: “AB’s focus on bringing together a wide range of insights, expertise and innovations has resulted, in AMVE’s case, in a strategy which, since inception, has delivered above market returns with lower volatility than the index and won multiple industry awards. We are pleased to be partnering with Chi-X to deliver AMVE to a broader investing public.”

Chief Executive Officer of Chi-X Australia, Vic Jokovic, said the search for more stable returns in an uncertain environment and continuing market volatility is stronger than ever.

“A challenging global investment landscape, including historically unusual policy settings and unforeseen events such as COVID-19, have added to the risks that Australian investors face,” Mr Jokovic said. “We are pleased to welcome AllianceBernstein and AMVE on to Chi-X. This adds to a growing list of Active ETFs on our platform that aim to deliver greater diversity to the portfolios of Australian investors.”

AMVE is issued by AllianceBernstein Investment Management Australia Limited (ABIMAL). While ABIMAL will be responsible for market-making, Macquarie will act as ABIMAL’s agent for market-making services.

Chi-X Funds began trading on exchange in October 2019, enabling issuers to provide investors with access to managed funds together with the convenience of daily quotation and trading.

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