The AllianceBernstein Managed Volatility Equities Fund has been added to the Macquarie Wrap investment platform.
Jen Driscoll, AB‘s Chief Executive Officer—Australia, said: “We’re delighted that AB’s Managed Volatility Equities Fund is now accessible via the highly regarded Macquarie Wrap platform.”
The Fund aims to reduce volatility by identifying, and investing in, high-quality listed equity securities which have reasonable valuations, high-quality cash flows and relatively stable share prices.
Roy Maslen, Chief Investment Officer—Australian Equities, said: “Australian investors—particularly those in or near retirement—are increasingly demanding investment products that provide more certainty, while still participating in growth. Being added to platforms like Macquarie Wrap is further evidence that there is growing demand in Australia for better solutions to this retirement conundrum.”
Since launching on March 31, 2014, the Fund has helped smooth the ride for investors during periods of market volatility.
“In the 15 months since its inception, the Fund’s best relative returns have been during months when the index fell sharply but the Fund fell significantly less, resulting in a higher return overall at a lower volatility,” said Maslen.
Through June 30, 2015, the Fund achieved an annualised relative (net of fees) fund return of 10.5%, and did so with 26% less volatility (calculated on a daily basis) than the FTSE ASFA Australia 300 Index. This included accrued franking credits for the period of 0.68%.
For the financial year July 1, 2014, to June 30, 2015, the comparable figures were 12.6% and 0.80% respectively (see Disclosure, next page).
The Fund, which has an indirect cost ratio of 0.55%, invests primarily in Australian equities and is designed for investors seeking lower volatility, reduced downside risk in falling equity markets, the potential for long-term capital growth and some income, including franked Australian dividend income.
While likely to lag a rising market, the Fund is expected to benefit from the so-called “low-volatility paradox”—a well-researched and well-documented phenomenon in which low-volatility stocks tend to outperform higher-volatility stocks on a risk-adjusted basis over time.
The addition to Macquarie Wrap follows other recent platform listings, with the Fund also available on BT Wrap, HUB24 and netwealth.
