VicSuper awards AllianceBernstein (AB) a A$100 million mandate for its Emerging Consumer strategy

"The Emerging Consumer strategy will diversify our emerging-market equities exposure," said Oscar Fabian, Chief Investment Officer of VicSuper.

Consumption growth in emerging markets represents one of the biggest investment opportunities in the world, with McKinsey Consulting estimating that emerging-market consumers will be spending US$30 trillion a year by 2025.1

"This approach offers diversification from traditional emerging-market equity strategies in two ways - by focusing on emerging-market consumers and by being benchmark-unaware,” said Tassos Stassopoulos, Portfolio Manager at AB.

Instead of focusing on stocks listed in the emerging-market equities benchmarks, or at developed-country stocks with emerging-market exposures, the Emerging Consumer strategy uses what Stassopoulos calls 'grassroots' research to explore themes identified by top-down analysis.

AB grassroots research involves visiting emerging-market countries and talking to business owners on their premises and consumers in their homes. Through this approach AB's research team has visited and conducted research in over 13 emerging market regions since 2011, including Mexico, Peru, Chile, West and South Africa, India, Indonesia, Thailand, the Philippines and China.

"By doing this, we aim to avoid the trap of being captive to stocks listed in the indices, which we believe are really yesterdays success stories, not tomorrow's. It also helps us to expose, and work to avoid, many myths that have grown up around the emerging-consumer opportunity." Said Stassopoulos.

AB also manages an Emerging Markets Value mandate and Australian Value mandate for VicSuper.

For further information contact:

Alexis Harrison
Senior Marketing Consultant VicSuper
Ph +61 3 9667 9762 - Mob +61 411 273 424


1 http://www.mckinsey.com/features/30_trillion_decathlon

"The Emerging Consumer strategy will diversify our emerging-market equities exposure," said Oscar Fabian, Chief Investment Officer of VicSuper.

Consumption growth in emerging markets represents one of the biggest investment opportunities in the world, with McKinsey Consulting estimating that emerging-market consumers will be spending US$30 trillion a year by 2025.1

"This approach offers diversification from traditional emerging-market equity strategies in two ways - by focusing on emerging-market consumers and by being benchmark-unaware,” said Tassos Stassopoulos, Portfolio Manager at AB.

Instead of focusing on stocks listed in the emerging-market equities benchmarks, or at developed-country stocks with emerging-market exposures, the Emerging Consumer strategy uses what Stassopoulos calls 'grassroots' research to explore themes identified by top-down analysis.

AB grassroots research involves visiting emerging-market countries and talking to business owners on their premises and consumers in their homes. Through this approach AB's research team has visited and conducted research in over 13 emerging market regions since 2011, including Mexico, Peru, Chile, West and South Africa, India, Indonesia, Thailand, the Philippines and China.

"By doing this, we aim to avoid the trap of being captive to stocks listed in the indices, which we believe are really yesterdays success stories, not tomorrow's. It also helps us to expose, and work to avoid, many myths that have grown up around the emerging-consumer opportunity." Said Stassopoulos.

AB also manages an Emerging Markets Value mandate and Australian Value mandate for VicSuper.

For further information contact:

Alexis Harrison
Senior Marketing Consultant VicSuper
Ph +61 3 9667 9762 - Mob +61 411 273 424


1 http://www.mckinsey.com/features/30_trillion_decathlon