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New York-based $547bn giant launches first UK Oeic

New York-based $547bn giant launches first UK Oeic

US giant AllianceBernstein has launched its first open ended investment company fund, which is based on a top performing European equity strategy.

The New York headquartered investment firm, which has $547 billion (£418 billion) in assets under management, has named the Oeic ES AllianceBernstein Europe (ex UK) Equity. 

The Oeic is managed by Citywire + rated Tawhid Ali, CIO of European value equities, and Citywire A rated Andrew Birse, portfolio manager of European value equities.

The pair will run a relatively concentrated portfolio of 40-60 holdings. They will also employ an environmental, social and governance approach to assess risk and opportunity.

AllianceBernstein added that the investment team uses a ‘private equity-like mindset’, by applying internal rate of return (IRR) techniques on each stock.

The fund is based on a similar strategy to AB’s European Equity portfolio, which is also run by the duo. 

In three years to the end of February, the fund has returned 38.3%, beating the peer group average of 27.3%. 

Ali (pictured) said: ‘Political risks are driving market anxiety and accentuating mispricing, causing European investors to pay an unusually high premium for perceived safety.

‘We approach investing as business owners, developing a differentiated perspective on companies’ future cash flows and buying them at prices that offer attractive returns.’

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Andrew Birse
Andrew Birse
4/62 in Equity - Eurozone (Performance over 3 years) Average Total Return: 49.42%
Tawhid Ali
Tawhid Ali
3/62 in Equity - Eurozone (Performance over 3 years) Average Total Return: 49.42%
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