AllianceBernstein has launched a European (ex-UK strategy) aimed at UK investors and which the firm says is managed along private equity lines.
ES AllianceBernstein Europe (ex UK) Equity Oeic is based on a similar strategy that the firm has managed since January 2004.
The firm also said it would role out further Oeic structures for the UK market because Oeics – or open-ended investment companies – “provide a real differentiating approach for UK investors”.
The fund managers for the past eight years are Tawhid Ali, chief investment officer of European value equities, and Andrew Birse, portfolio manager of European value equities.
It consists of 40-60 holdings and the investment team employs a private equity-like mindset by applying ‘internal rate of return’ techniques on each stock.
Ali said: “We approach investing as business owners developing a differentiated perspective on companies’ future cash flows and buying them at prices that offer attractive returns. We believe these market conditions provide investment opportunities for a rigorous stock selection approach and disciplined business owner process to win out.”
He added that political risks are “driving market anxiety and accentuating mispricing, causing European investors to pay an unusually high premium for perceived safety”.
©2019 funds europe
