AllianceBernstein debuts second active ETF

AllianceBernstein (AB) launched the AB Global Strategic Core Equities Fund - Active ETF on Cboe Australia.

The fund offers investors access to global markets via a more defensive approach while still achieving long-term outperformance, AB said.

The underlying strategy was launched as a managed fund locally in 2024 but was actually established offshore in 2011 following the Global Financial Crisis.

AB said its chief investment officer Kent Hargis and his team noted the pain advisers and investors felt during that period and sought to develop a fund that would better protect investor capital while still offering growth opportunities.

"Since then, the fund has navigated many market drawdowns under Kent's leadership, delivering investors a smoother long-term ride. AB now offers a listed and unlisted vehicle in the Australian market, meeting adviser demand for flexible product solutions," it said.

Hargis said the fund manager is excited to open the fund up to more investors via the listing.

"We are confident that our process of focusing on quality businesses with strong cash flows will see the fund continue to perform well, offering ETF investors a stable and defensive core in their equity portfolios," he said.

"We aim to win more by losing less. Our investment philosophy is to invest in high-quality companies to beat the market, while investing in stable companies to protect on the downside and buying those companies at a reasonable price.

"This combination of quality, stability and price is how we're able to beat the market and do it with less risk because it provides multiple ways to win and gives you a very consistent pattern of performance."

The manager noted the build out of its ETF suite is a key plank in its local distribution strategy.

Meantime, Cboe Australia president Emma Quinn said: "We are pleased to partner with AllianceBernstein on its second ETF listing."

"As a leader in active management, AllianceBernstein's strong global capabilities, combined with a clear focus on local investors, align well with our shared commitment to delivering innovative products and best-in-class client service."