(The following statement was released by the rating agency)
NEW YORK, August 22 (Fitch) Fitch Ratings has affirmed
American Income Portfolio's (AIP) 'Strong' Fund Quality Rating.
The fund is
managed by AllianceBernstein L.P. (AB; A+/Stable/F1).
KEY RATING DRIVERS
The 'Strong' rating reflects the fund's robust and well-balanced
process that combines the independent inputs of credit,
macro-economic research in a disciplined and formalised
approach. The fund
benefits from the depth of AB's fixed income and support
resources, and from a
robust IT platform.
Launched in 1993, AllianceBernstein AIP is a Luxemburg-domiciled
USD7.9bn of assets as of end-July 2014, investing typically 65%
grade (IG) and 35% in high yield (HY) credit, including
USD-denominated emerging market debt.
The fund's uses a flexible, barbell approach, to provide stable
high income and
to preserve capital. The well-balanced investment process
independent inputs of credit, economic and quantitative research
the overall portfolio positioning, while allowing portfolio
sufficient flexibility in credit selection. The fund benefits
from the depth of
AB's fixed income and support resources.
The fund is supported by a nine-member portfolio management team
(eight in New
York and one in London), with an average of 20 years of industry
Support is also provided by AB's global credit research team of
38, an economic
team of nine, a quantitative research team of 10 and a
fixed-income trading desk
team of 21. The fund's IT platform is built around integrated
third-party systems and risk analytics.
AIP has outperformed the Lipper category "Global Bond USD" since
strong track record is illustrated by a Lipper consistent return
score of five
(highest quintile) over three-, five- and ten-year periods.
The fund tends to outperform in rising and flat markets. It
2008 and 2013, the latter being a particular case where
behind credit barbell investing in U.S. Treasuries and HY credit
deteriorated. However, the fund's high allocation to U.S.
resourceful for shareholder liquidity at the time, and the
reallocation to HY credit has allowed the fund to generate
excess returns in the
bond market's 2014 recovery.
AB is a diversified asset manager (USD480bn assets under
management as at
end-June 2014 and USD266bn in fixed income).
The rating may be sensitive to material changes in the
investment or operational
processes or resources dedicated to the fund. A material adverse
Fitch's guidelines for any key rating driver could result in a
example, this may be manifested in significant structural
deterioration in the
fund's performance or excessive risk-taking. Fitch sees limited
dependency given the depth of the fixed income team. Conversely,
could result from a demonstrated ability to outperform peers
consistently on a
risk-adjusted basis amid rising interest rates and in bear
Fitch's Fund Quality Ratings combine Fitch's experience in
analysis with rankings and performance data from Lipper, a
company. Fitch's Fund Quality Ratings offer an independent,
assessment of a fund's key performance and risk attributes and
longer-term returns, relative to peer group or benchmarks. The
ratings focus on
the fund manager's investment process, key fund performance
management, and the quality of the fund's operational
For more information, please see
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Yuriy Layvand, CFA
33 Whitehall Street
New York, NY 10004
Davie Rodriguez, CFA
+1 212 908 0528
Media Relations: Elaine Bailey, London, Tel: +44 203 530 1153,
Additional information is available at www.fitchratings.com.
Applicable criteria, 'Fund Quality Ratings Criteria', dated 19
are available at www.fitchratings.com.
Applicable Criteria and Related Research:
Fund Quality Ratings Criteria: Assessing Fundsâ€™ Investment
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