AllianceBernstein has added four portfolios to its open-ended fund range — all with an ESG evaluation.
The asset manager announced this week it had launched Concentrated Global Equity, Concentrated US Equity, Low Volatility Global Equity and Sustainable US Equity funds.
AllianceBernstein said each fund took an active, bottom up stock approach and that it would evaluate the environmental, social and governance criteria of each company within the portfolio.
The firm already has a version of each of these investment vehicles as offshore funds but has made versions available under its UK umbrella.
Jamie Hammond, chief executive of AllianceBernstein EMEA, said: “We are seeing tremendous demand in the UK for both concentrated equity portfolios and sustainable strategies.
“In keeping with our growth strategy of making relevant active products available to UK investors, we have decided to launch these products in our recently established OEIC umbrella.”
Mr Hammond said the funds offered investors a differentiated approach in popular sectors and that the teams had been running their respective strategies with impressive track records.
But Patrick Connolly, chartered financial planner at Chase de Vere, said it was “difficult” to see what made these funds stand out from the crowd.
He added: “To invest in a concentrated equity portfolio, advisers will need faith in the underlying management team and they may also be reluctant to consider concentrated funds when markets are so volatile.
“A low volatility fund may have some merit — although the best way to manage risks is typically through asset allocation — and it seems that just about every man and his dog is launching sustainable or ESG funds at the moment.”
imogen.tew@ft.com
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