NEW YORK, Oct. 3, 2011 /PRNewswire/ -- AllianceBernstein
L.P. today announced that the firm recently incorporated a
volatility management component into CollegeBoundfund, the
529 college savings program for which it serves as both Program and
Investment Manager. Volatility management is designed to
reduce market risk during periods of extreme volatility.
AllianceBernstein's volatility management capability, which is
unique in the 529 college savings arena, leverages
AllianceBernstein's Dynamic Asset Allocation (DAA) tools and
process and is being made available in all of
CollegeBoundfund's age-based and most of its risk-based
portfolios. As a result, AllianceBernstein will have the ability to
dynamically reduce exposure to equities in these portfolios
depending upon its assessment of the near-term risk and return
environment. When reducing exposure to equities,
AllianceBernstein will be able to de-risk into bonds and cash as
well as potentially hedge currency exposures when appropriate.
Daniel Loewy, co-chief investment
officer and director of research for AllianceBernstein's DAA
strategies, said: "Given the volatility in today's markets,
investors are seeking strategies to help soften the impact of
severe downside risk. With volatility management, we are seeking to
smooth the investment ride for college savers by reducing their
exposure to short-term volatility without compromising return—a key
objective for savers looking to address the high rate of college
inflation. Volatility management delivers a unique solution
to help meet these needs and provides a significant benefit to
participants."
AllianceBernstein is also adding a third age-based glide path,
Conservative Growth (alongside its Moderate Growth and Aggressive
Growth age-based options), for participants seeking a lower level
of risk, especially in years just prior to and in college, and who
are comfortable with a lower return potential.
With over $7 billion in assets,
CollegeBoundfund is the nation's second-largest advisor-sold
program according to Financial Research Corporation as of
June 30, 2011.
About AllianceBernstein
AllianceBernstein is a leading global investment management firm
that offers high-quality research and diversified investment
services to institutional investors, individuals and private
clients in major world markets.
At June 30, 2011,
AllianceBernstein Holding L.P. (NYSE: AB) owned approximately 37.8%
of the issued and outstanding AllianceBernstein Units and AXA, one
of the largest global financial services organizations, owned an
approximate 62.4% economic interest in AllianceBernstein.
Additional information about CollegeBoundfund may be
found at www.collegeboundfund.com. Additional information
about AllianceBernstein may be found on our internet site,
www.alliancebernstein.com.
SOURCE AllianceBernstein