AB Managed Volatility Equities Fund (Managed Fund)—MVE Class

Objective

The AB Managed Volatility Equities Fund (Managed Fund)—MVE Class (“MVE Class”) aims to achieve returns that exceed the S&P/ASX 300 Accumulation Index after fees over the medium to long-term.

Investment Strategy

  • The MVE Class is designed for equity investors seeking lower volatility than is typical for an equity fund, reduced downside risk in falling equity markets, and the potential for long-term capital growth and some income, including franked Australian dividend income.
  • The MVE Class invests mainly in Australian Securities Exchange (ASX)–listed shares, with up to 20% of its assets in global developed-market shares, and has the ability to hold up to 20% in cash, for example as a short-term defensive measure at times of heightened equity market volatility.
  • The MVE Class implements a managed-volatility equities strategy that aims to reduce volatility by identifying, and investing in, high-quality listed equity securities that have reasonable valuations, high-quality cash flows and relatively stable share prices.
  • The MVE Class does not always hedge the foreign currency exposures of its global equity assets to Australian dollars but the investment manager has the discretion to determine the extent to which any foreign currency exposure is increased, reduced or removed. For example, the investment manager may decide not to remove a foreign currency exposure if it believes it offers defensive characteristics that would assist in lowering the volatility of the MVE Class.
  • The MVE Class may also invest in preference shares, rights, convertibles, warrants, securities we reasonably expect to be listed within six months (including initial public offerings), listed trusts and/or other synthetic foreign equity securities.
  • Derivatives may be used to manage risks (including foreign currency risk), invest cash, manage volatility and gain or reduce investment exposures. Derivatives used for purposes other than managing foreign currency exposures will, except in exceptional circumstances, be limited to 10% of the Net Asset Value of the MVE Class. The assets of the MVE Class may be used as security (collateral) for derivatives entered into on behalf of the MVE Class. Derivatives will not be used for leveraging or gearing purposes.

Key Facts

INCEPTION DATE
31 MARCH 2014
MVE CLASS SIZE
A$1,364,289,222
Chi-X TICKER
AMVE
MANAGEMENT COST
0.55% p.a.
APIR CODE
ACM0006AU

Link Market Services

Investors in the MVE Class can:

  • Change your contact details
  • Update your bank details
  • Change your DRP election
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Management Team

Roy Maslen
Biography
Eric Demoiseau, CFA
Biography
Kent Hargis
Biography
Sammy Suzuki, CFA
Biography
Portfolio Details
Domicile: Australia
Base Currency: Australian Dollars
Subscription / Redemption: Daily
Ratings
Zenith Recommended


Longsec Highly Recommended


Morningstar Silver


The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned June 2021) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines.

The Lonsec Rating (assigned September 2021) presented on this website is published by Lonsec Research Pty Ltd (ABN 11 151 658 561, AFSL 421445). The Rating is a “class service” (as defined in the Financial Advisers Act 2008 [NZ]) or is limited to “General Advice” (as defined in the Corporations Act 2001 [Cth]) and based solely on consideration of the investment merits of the financial product(s). In New Zealand it must only be provided to “wholesale clients” (as defined in the Financial Advisers Act 2008 [NZ]). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold the AB Global Equities Fund, and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s), using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at:https://www.lonsecresearch.com.au/research-solutions/our-ratings/

© 2021 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. The Morningstar Rating is an assessment of a fund’s past performance – based on both return and risk – which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision.

Invest Through Chi-X

You can invest in the MVE Class directly via your online broking account. The MVE Class is available through Chi-X.

View the Indicative Net Asset Value (iNav)*

Investors should read the Product Disclosure Statement (PDS) and speak to their financial adviser before making a decision.

Invest Directly With the Fund

The MVE Class is also offered on a number of industry leading platforms. By downloading and completing the application form, investors can also buy units directly from AB provided they apply for the minimum investment of A$50,000 in units.

Investors should read the Product Disclosure Statement (PDS) and speak to their financial adviser before making a decision.

Speak to Your Financial Adviser

Before making a decision to invest, investors should speak with their financial adviser to see if the MVE Class is right for them.