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 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.’