Global asset manager AllianceBernstein (AB) said today that its AB Managed Volatility Equities Fund had received a ‘Recommended’ rating from investment research provider Zenith Investment Partners.
“We’re very pleased to receive Zenith’s support for the Fund through this inaugural rating, particularly given its significance for clients who rely upon Zenith’s views,” said Jen Driscoll, AB’s Chief Executive Officer—Australia.
“It may also be regarded as quite timely, in light of how the recent result of the UK referendum on membership of the European Union has highlighted continuing volatility in local and global markets.”
The Fund, which invests mainly in shares listed on the Australian Securities Exchange, is designed for equity investors seeking lower volatility, reduced downside risk in falling equity markets and the potential for long-term capital growth and some income, including franked Australian dividend income.
In its rating rationale, Zenith said it believed the Fund was “uniquely positioned” in the Australian equity market and that its cost structure was “very competitive” when compared with its peers.
The research firm noted that the Fund seeks to capture the so-called ‘low-risk anomaly’ whereby low volatility stocks tend to generate higher risk-adjusted returns when compared to stocks with high volatility. The Fund also aims to invest in high quality stocks at attractive valuations.
Zenith said it believed the Fund‘s approach was “intuitively appealing and relatively unique when compared to its peers”. It also noted that the management cost of the flagship version of the Fund was 0.55% p.a., compared to the 0.95% p.a. sector average for wholesale funds.
As of May 31, 2016, the Fund—launched on March 31, 2014—has delivered a total return of 15.25%[1] annualised, outperforming the market by an annualised 10.03%.
The Fund has also been assigned a Recommended rating by Lonsec Research and was recently named winner of the Retirement Production Innovation category of the Money Management/Lonsec Fund Manager of the Year 2016 Awards.
Source: AllianceBernstein
