Learn how we’ve partnered with some of our clients to develop the best solutions to meet their needs.
Strategic Portfolio Repositioning
Working closely with a life and annuity insurance company, we followed a comprehensive four-step process to reposition its traditional core portfolio. By incorporating more diversified exposures, including illiquid assets, we enhanced book yield while meeting the client’s objectives.
Process and Methodology
Define objective: yield, risk budget, duration, liquidity, income
Incorporate investment and noninvestment client constraints into analysis: hedging, regulatory considerations, accounting
Analyze current allocation and create repositioning plan
Develop and Decide
Consultative partnership between client and asset-class experts
Iterative internal allocation process between subject experts
Discuss options to determine optimal Strategic Asset Allocation: stress/scenario testing, relative value, capital impacts, ESG
Review & Execute
Review allocation and adjust based on current market dynamics, subject to guidelines and constraints
Leverage AB’s tech and innovation to take liquidity and market opportunities into account while executing quickly
Added 50 b.p. of book yield and compliant with guidelines
Greater diversification: rotated out of munis, US government, IG credit to fund private credit, EMD, high-yield and securitized assets
Enhanced yield with illiquid assets
For illustrative purposes only. There can be no assurance that any investment objectives will be achieved.
Blended Emerging-Market Debt Solution
We worked with a large life insurer that was seeking alternate approaches to increasing its book yield. After assessing the client’s needs, we designed a diversified investment-grade portfolio of emerging-market debt that blended hard-currency corporate and sovereign bonds.
Process and Methodology
Client Discovery, Education and Diligence
Introduced EMD to prospect who was seeking alternative ways to boost book yield while preserving quality. Met and conducted due diligence with AB team over 18- to 24-month span.
Portfolio Construction and Management
Employed iterative process to determine client constraints and diversification requirements; continued due diligence with AB team.
Implementation and Active Management
Produced diversified investment-grade portfolio with blend of hard-currency corporates and sovereigns. Small bucket for opportunistic high yield.
All portfolio statistics, characteristics and holdings are subject to change. There can be no assurance that any investment objectives will be achieved.
As of January 31, 2022
This is a marketing communication. This information is provided by AllianceBernstein Limited, 60 London Wall, London, EC2M 5SJ. Registered in England, No. 2551144. AllianceBernstein Limited is authorised and regulated in the UK by the Financial Conduct Authority (FCA - Reference Number 147956). It is provided for informational purposes only and does not constitute investment advice or an invitation to purchase any security or other investment. The views and opinions expressed are based on our internal forecasts and should not be relied upon as an indication of future market performance. The value of investments in any of the Funds can go down as well as up and investors may not get back the full amount invested. Past performance does not guarantee future results. This information is directed at Professional Clients only and is not intended for public use.