TEXT-Fitch affirms AllianceBernstein Global High Yield Portfolio's 'strong' fund quality rating
Nov 13 - Fitch Ratings has affirmed AllianceBernstein Global High Yield Portfolio's (GHY) 'Strong' Fund Quality Rating. The fund is managed by AllianceBernstein L.P.
AllianceBernstein GHY is a Luxemburg domicile fund of USD22.8bn of assets as of end-September 2012 investing in high-yield debt securities of issuers local throughout the world, including the US and emerging countries.
The primarily bottom-up, investment process combines the independent inputs of fundamental and quantitative research in a disciplined manner, while allowing portfolio managers (PM) sufficient flexibility in the selection of diversified sources of risks and returns. The fund benefits from the depth of AB's fixed income and support resources.
Process and resources remained stable over the past 12 months, with increased resources and focus on emerging market corporate debt to be noted.
Launched in September 1997, the fund has outperformed the Lipper category "Bond Global High Yield" since inception. The strong track record is illustrated by a Lipper Leader of five (highest quintile) over five and 10 years and four over three years. In the year to October 2012, the fund had the same return as the category, i.e. 13.3%, while slightly underperforming its composite benchmark. The fund's size makes managing capacity and liquidity critical to consistently achieving outperformance in the longer term and in periods of stress.
AllianceBernstein, L.P., rated 'A+'/Stable/ 'F1' is a diversified asset manager (USD419bn AUM as at September 2012). AB has been investing in high yield debt (HYD) and emerging market debt (EMD) since the mid-1980s and early 1990s respectively. AB manages USD54.3bn in EMD and HYD strategies as at September 2012.
Fitch's Fund Quality Ratings combine Fitch's experience in qualitative fund analysis with rankings and performance data from Lipper, a Thomson Reuters company. Fitch's Fund Quality Ratings offer an independent, forward-looking assessment of a fund's key performance and risk attributes and consistency of longer-term returns, relative to peer group or benchmarks. The ratings focus on the fund manager's investment process, key fund performance drivers, risk management, and the quality of the fund's operational infrastructure.
For more information, please see www.fitchspotlight.com/FQR.
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