AllianceBernstein wins industry fund mandate

An $11 billion industry fund will become the first super fund to invest in a low-carbon portfolio designed by AllianceBernstein.

NGS Super has invested $170 million in AllianceBernstein's Managed Volatility Equities Fund Green strategy, known as Green MVE, which launched in December last year.

The strategy is based on the view that a portfolio of low-volatility shares may not only limit losses but outperform the market.

NGS Super chief executive Laura Wright said: "We're committed to sustainable long-term investment options that work to give our members the best retirement outcomes and this strategy speaks directly to that goal."

She explained that the investment is in-line with the ESG strategies of the fund.

"Our investment in Green MVE is a way for us to reduce the carbon intensity and risk of our portfolio without impacting the expected returns of our members. Overall, we believe considering a cost of carbon in the investment process helps reduce the risks associated with climate change and supports in the broader transition to a low carbon economy," Wright said.

AllianceBernstein's innovative approach of measuring carbon emissions and directly engaging with Australian companies brings a raft of benefits, she added.

"Direct engagement with companies helps to drive innovative change from within to better climate outcomes and it also provides a deeper analysis of the climate related risks in our broader Australian equity portfolio."

AllianceBernstein chief investment officer - Australian equities Roy Maslen said the investment by NGS was a positive step towards promoting climate change sensitive investment decisions.

"We're delighted to have the support of a fund like NGS Super, whose shared desire to provide long term investment options that produce broad environmental and social benefits for their members aligns directly with the core values of this strategy," he said.

"Green MVE provides an opportunity for investors who want to lower the carbon footprint of their portfolio and invest in a more environmentally responsible way to do so, without risking their ability to still gain returns."

Read more: AllianceBernsteinGreen MVENGS SuperESGLaura WrightRoy MaslenVolatility Equities Fund Green
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