Jan 17 (The following statement was released by the rating agency)
Fitch Ratings has affirmed AllianceBernstein Global High Yield Portfolio's (GHY) 'Strong'
Fund Quality rating. The fund is managed by AllianceBernstein L.P.
AllianceBernstein GHY benefits from a robust and well balanced investment
process that combines the independent inputs of credit and macro-economic
research in a disciplined and formalised approach. The fund benefits from the
depth of AllianceBernstein's fixed income and support resources, and from a
robust IT platform.
KEY RATING DRIVERS
Launched in September 1997, AllianceBernstein GHY is a Luxemburg domicile fund
with USD22.7bn of assets as of end-December 2013, investing in high-yield debt
securities of global issuers, including the US and emerging countries.
The fund's primarily bottom-up, investment process combines the independent
inputs of fundamental and quantitative research in a disciplined approach, while
allowing portfolio managers (PM) sufficient flexibility in the diversification
of sources of risks and returns. Economic, credit and quantitative research are
conducted by independent teams. Research recommendations are challenged in
formal review meetings and a consensus is sought on portfolio investment
The portfolio management team consists of 10 individuals, with 21 years of
experience and 11 years of company tenure on average. The team is supported by a
credit research team of 35, an economic team of nine, a quantitative research
team of eight and a fixed income trading desk of 20. The IT platform is built
around integrated proprietary and third-party systems and risk analytics.
The fund has outperformed the Lipper category "Bond Global High Yield" since
inception. The strong track record is illustrated by a Lipper Leader of five
(highest quintile) over five and 10 years. In 2013, the fund had roughly the
same return as the category, while outperforming by 6.8% its composite benchmark
(33% Barclays Capital High Yield Index 2% Constrained 33% JP Morgan GBI-EM 33%
JP Morgan EMBI Global Index). The fund's large size makes managing both capacity
and liquidity critical to its ability to consistently outperform over the long
term and in periods of stress.
AllianceBernstein, L.P., rated 'A+'/Stable/'F1' is a diversified asset manager
(USD451bn assets under management as at end-December 2013). AB has been
investing in high yield debt (HYD) and emerging market debt (EMD) since the
mid-1980s and early 1990s respectively. AB managed USD64bn in EMD and HYD
strategies as at end-September 2013.
The rating may be sensitive to material changes in the investment or operational
processes, or resources dedicated to the fund. A material adverse deviation from
Fitch's guidelines for any key rating drivers could result in a downgrade of the
rating. For example, this may be manifested in significant structural
deterioration in the fund's performance relative to its benchmark and peers. Key
man risk is limited given the depth of the credit team and the process-driven
Fitch's Fund Quality Ratings combine Fitch's experience in qualitative fund
analysis with rankings and performance data from Lipper, a Thomson Reuters
company. Fitch's Fund Quality Ratings offer an independent, forward-looking
assessment of a fund's key performance and risk attributes and consistency of
longer-term returns, relative to peer group or benchmarks. The ratings focus on
the fund manager's investment process, key fund performance drivers, risk
management, and the quality of the fund's operational infrastructure.
For more information, please see www.fundmanagement.fitchratings.com
To receive forthcoming Fund Quality Rating research, opt in at
Link to Fitch Ratings' Report: AllianceBernstein Global High Yield Portfolio