AllianceBernstein changes allocations, benchmarks of portfolios

By Toni Weeks

San Diego, Nov. 4 - AllianceBernstein Retirement Strategies announced it has changed the investment allocation between U.S. and non-U.S. securities for its 12 retirement strategies, according to a 497 filing with the Securities and Exchange Commission.

The strategies invest in underlying portfolios of the AllianceBernstein Pooling Portfolios. Effective Dec. 31, the strategies will allocate 60% of their portfolio assets to equity investments in U.S. securities and 40% in non-U.S. securities in order to broaden exposure to global equity markets and to achieve a better risk/return profile. Currently, 70% of the assets are allocated to investments in U.S. securities and 30% to non-U.S. securities.

The affected strategies include the AllianceBernstein 2000 Retirement Strategy, the AllianceBernstein 2005 Retirement Strategy, the AllianceBernstein 2010 Retirement Strategy, the AllianceBernstein 2015 Retirement Strategy, the AllianceBernstein 2020 Retirement Strategy, the AllianceBernstein 2025 Retirement Strategy, the AllianceBernstein 2030 Retirement Strategy, the AllianceBernstein 2035 Retirement Strategy, AllianceBernstein 2040 Retirement Strategy, the AllianceBernstein 2045 Retirement Strategy, the AllianceBernstein 2050 Retirement Strategy and the AllianceBernstein 2055 Retirement Strategy.

In addition, the AllianceBernstein Intermediate Duration Bond Portfolio will be renamed the AllianceBernstein Global Core Bond Portfolio, in correlation with the board's intent to globalize the portfolio's investment strategy. Under the new strategy, the portfolio will invest at least 40% of its assets in fixed-income securities of non-U.S. issuers located in at least three countries. The current strategy is to invest no more than 20% of its assets in non-dollar-denominated securities. The portfolio's benchmark will change to the Barclays Capital Global Aggregate Bond index (U.S. dollar hedged) from the Barclays Capital U.S. Aggregate Bond index. The portfolio may invest in bonds of any duration and maturity and may hedge a significant portion of its currency exposure associated with its non-dollar-denominated investments.

The AllianceBernstein Global Core Bond Portfolio will add three portfolio managers, including Paul J. DeNoon, Scott DiMaggio and Michael L. Mon, to the existing team consisting of Douglas J. Peebles and Matthew S. Sheridan.

The filing also said that three AllianceBernstein portfolios will change their benchmarks. Effective Dec. 31, the AllianceBernstein International Growth Portfolio and the AllianceBernstein International Value Portfolio will change their benchmarks to the ACWI ex U.S. index from the EAFE index. The benchmark for the Volatility Management Portfolio is being changed to the ACWI index from the S&P 500 index.

New York-based AllianceBernstein LP is the investment adviser to the portfolios.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.