The emerging markets value strategy developed by AllianceBernstein aims to produce an attractive performance premium by investing in value opportunities within emerging markets.
The strategy will identify 80 to 100 stocks that are trading at a discount to their long-term earnings-power potential by using fundamental research.
AllianceBernstein will also use a proprietary county allocation approach to help reduce risk while increasing long-term returns.
Tobacco manufacturing companies will be excluded from the portfolio in line with VicSuper’s investment policy.
Alliance Bernstein chief investment officer, emerging markets value Henry D’Auria said valuation metrics make emerging markets an attractive investment option.
“Especially for investors who believe, as we do, in the long-term rationale for emerging markets investing,” said Mr D’Auria.
This recent mandate follows VicSuper’s investment in the AllianceBernstein franked australian value strategy in November last year.
According to AllianceBernstein, both mandates acknowledge VicSuper’s sustainability objectives.
“We are delighted to receive this new mandate from VicSuper, which provides a strong endorsement of our global investment strengths and deepens our existing partnership — one that encourages the sharing of ideas to provide innovative solutions,” said AllianceBernstein managing director of institutional relationships Brad Karp.
