AllianceBernstein Global High Income Fund: Portfolio Update Trends

The AllianceBernstein Global High Income Fund, Inc. (AWF) has released its monthly portfolio updates for May and August 2024, offering insights into the fund's investment strategies and market dynamics. This article explores the key trends in the fund's top 10 fixed-income holdings, sector allocations, and risk management strategies.


1. **Top 10 Fixed-Income Holdings**: The fund's top holdings have seen some shifts between May and August. In May, the top 10 holdings included a mix of U.S. Treasury notes, corporate bonds, and collateralized loan obligations (CLOs). In August, the fund added DaVita, Inc. to its top 10 holdings, replacing Altice France SA. This change reflects the fund's dynamic approach to asset allocation and its focus on high-yield investments.


2. **Sector Allocations**: The fund's allocations to non-investment grade corporates and investment grade corporates have evolved over the two updates. In May, non-investment grade corporates accounted for 50.61% of the portfolio, while investment grade corporates made up 19.10%. By August, these allocations had shifted to 49.73% and 18.00%, respectively. This slight reduction in non-investment grade corporates and increase in investment grade corporates suggests a more conservative approach to risk management.


3. **Credit Default Swaps and Derivative Offsets**: The fund's exposure to credit default swaps (CDS) and derivative offsets has changed between the two updates. In May, CDS accounted for 14.80% of the portfolio, while derivative offsets totaled -20.46%. By August, CDS had decreased to 14.56%, and derivative offsets had improved to -18.36%. This reduction in derivative offsets indicates a lower level of risk in the fund's portfolio.

4. **Country Breakdown**: The fund's country breakdown portfolio percentages have also evolved between May and August. In May, the United States accounted for 68.17% of the portfolio, while other countries such as the United Kingdom, France, and Canada made up smaller percentages. By August, the United States' allocation had decreased to 66.37%, with other countries' allocations also shifting. This change in country breakdown reflects the fund's ongoing efforts to diversify its portfolio and manage risk.


In conclusion, the AllianceBernstein Global High Income Fund's portfolio updates provide valuable insights into the fund's investment strategies and market dynamics. The fund's top 10 fixed-income holdings, sector allocations, and risk management strategies have evolved between May and August, reflecting the fund's dynamic approach to asset allocation and its focus on high-yield investments. As investors, these updates can inform our decisions regarding asset allocation and risk management, helping us make more informed choices about our portfolios.