AllianceBernstein Global High Income Fund: A Stable Fixed Income Option for Long-Term Investors

The AllianceBernstein Global High Income Fund (AWF) is a closed-end fund that invests in fixed income securities to provide investors with stable income. The fund pays a distribution rate of $0.80/share, yielding 7.09% on a forward basis. AWF is designed to appeal to long-term investors seeking stable fixed income.

The AllianceBernstein Global High Income Fund (AWF) is a closed-end fund designed to provide investors with stable income through investments in fixed income securities. Launched on July 28, 1993, by AllianceBernstein, AWF has a diversified fixed-income strategy and currently manages approximately $994 million in net assets AWF: Stable Fixed Income For Long-Term Investors^[1].

AWF pays a monthly distribution rate of $0.80 per share, yielding 7.09% on a forward basis. This fund is actively managed, adjusting risk throughout the economic cycle, and is intended to be held for a long-term investment horizon. The fund employs a quantitative and fundamental approach to developing its bond portfolio, investing in both domestic and international bonds, including government and corporate issuances denominated in U.S. dollars and foreign currencies AWF: Stable Fixed Income For Long-Term Investors^[1].

The fund's portfolio is broadly diversified, with exposure to 1,207 individual issuances, of which the top 10 holdings account for only 4.8% of the total weight. AWF is largely diversified across international regions, with U.S. exposure making up 66% of the portfolio. The strategy includes exposure to high-yield bonds, with BB-rated bonds making up 43.81% of the portfolio and high-yield corporate bonds comprising 74.67% of the total exposure AWF: Stable Fixed Income For Long-Term Investors^[1].

From a value perspective, AWF has an effective duration of 2.86 years, making it modestly sensitive to interest rate policy. The recent U.S. Federal Reserve rate cuts, which are expected to continue, could potentially benefit foreign issuances denominated in USD, as the USD may weaken relative to foreign currencies. This could make dollar bonds more attractive to foreign issuers AWF: Stable Fixed Income For Long-Term Investors^[1].

AWF's performance has historically been at the midpoint of its peers, but it has outperformed on a 6-month total return basis. The fund's expense ratio is 100 basis points, making it one of the lower-cost fixed-income closed-end funds (CEFs) on the market AWF: Stable Fixed Income For Long-Term Investors^[1].

Investors should consider the risks associated with AWF, including manager risk, interest rate risk, inflation risk, and currency risk, among others. The actively managed nature of the fund and its international exposure can provide certain risks, such as exposure to foreign central bank rate policies and U.S. rate policy, which may influence exchange rates and cash flows AWF: Stable Fixed Income For Long-Term Investors^[1].