Smoothing the Ride
Smooth the Ride By Managing Volatility
Helping clients smooth the ride is one of the objectives of AB Managed Volatility Equities Fund - MVE Class - Active ETF (MVE). The strategy is designed to fall only 50% as much as the market on “down” days and go up 80% of the market on “up” days by investing in a range of quality, stable business with strong cashflows. When carefully selected, these defensive equities can create a portfolio with resilience in down markets and solid growth potential in up markets. By using this strategy, investors are more likely to maintain a core strategic allocation to equities through turbulent times, improving their chances of meeting their long-term goals.
As the chart below shows, the strategy has achieved its objectives during down markets and, as a result, has outperformed the market since inception.
Defensives Returns More Stable and Slightly Higher, than Index
Annualised Return from March 31, 2014 to March 31, 2025 (Percent)
Historical analysis does not guarantee future results.
*Based on a representative Managed Volatility Equities account—inception date March 31, 2014. The returns presented above are gross of fees.
As of March 31, 2025
Source: LSEG, MSCI, S&P Dow Jones and AllianceBernstein (AB)
Looking ahead, volatility appears likely to be a central characteristic of markets over the medium term. As the table below shows, there are a range of current risks across all five historic causes of market corrections. At times of market uncertainty, a defensive equities strategy can help investors smooth the ride.
All Five Historic Causes of Market Corrections Are Currently Risks
Peak-to-Trough Fall in Australian All Ordinaries Price Index: 1940–2024 (Percent)
Historical analysis does not guarantee future results.
As of March 31, 2025
Source: Bloomberg and AB
If your clients are looking for a low volatility equities fund, look no further than AB’s Managed Volatility Equities Fund. The Fund has outperformed during 9 of the last 10 largest monthly index falls, while maintaining strong overall performance.
Portfolio Outperformed During 9 Out of 10 Largest Monthly Index Falls
March 31, 2014–March 31, 2025
Past performance does not guarantee future results.
Based on the AB Managed Volatility Equities Fund—MVE Class—Active ETF vs. S&P/ASX 300. The total returns of the AB Managed Volatility Equities Fund—MVE Class—Active ETF are net of fees and costs and do not allow for tax or inflation. Performance figures exclude the value of any franking (or imputation) credits received.
As of March 31, 2025. Source: S&P Dow Jones and AB; see Disclosures and Important Information.
MVE: Performance Summary
March 31, 2025
Past performance does not guarantee future results.
Based on the AB Managed Volatility Equities Fund–MVE Class—Active ETF vs. S&P/ASX 300.
*Fund inception date: March 31, 2014. †The benchmark was changed to S&P/ASX 300 effective June 1, 2019. The Fund’s previous benchmark was S&P/ASX 300 Franking Credit Adjusted Daily Total Return (Tax-Exempt) and between March 31, 2014 to February 29, 2016 the benchmark was FTSE ASFA Australia 300—Tax Exempt. Numbers may not sum due to rounding. The total returns of the AB Managed Volatility Equities Fund–MVE Class—Active ETF are net of fees and costs and do not allow for tax or inflation. Performance is calculated using the relevant end-of-month exit prices and assumes that income is reinvested and that the investment is held for the full period. The information above may change in the event of error.
Source: FTSE, S&P Dow Jones and AB
To learn more about the strategy, hear our CIO of Australian Equities, Hamish FitzSimons discuss some key aspects of the fund and the current market outlook.
For further information and insights on the fund, please visit our fund page or contact a member of the Australian retail client team.
Disclosures and Important Information
Disclosure on Security Examples
References to specific securities are presented to illustrate the application of our investment philosophy only and are not to be considered recommendations by AllianceBernstein. The specific securities identified and described in this presentation do not represent all of the securities purchased, sold or recommended for the portfolio, and it should not be assumed that investments in the securities identified were or will be profitable. Upon request, we will furnish a listing of all investments made during the prior one-year period.
Past performance is not a guide to future performance.
Trademarks and devices are used for identification purposes only and are not used with the permission or endorsement of the trademark owner.
Additional Information
The value of investments and the income from them can fall as well as rise and you may not get back the original amount invested.
The value of non-domestic securities may be subject to exchange-rate fluctuations.
The views and opinions expressed in this presentation are based on AllianceBernstein’s internal forecasts and should not be relied upon as an indication of future market performance or any guarantee of return from an investment in any AllianceBernstein services.
MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI.
AB Managed Volatility Equities Fund - MVE Class - Active ETF (“MVE-Class”) is a unit class of the AB Managed Volatility Equities Fund (“Fund”) (ARSN 099 739 447). AllianceBernstein Investment Management Australia Limited (ABN 58 007 212 606, AFSL 230 683) (“ABIMAL”) is the responsible entity of the Fund and is the issuer of units in the Fund. ABIMAL has appointed AllianceBernstein Australia Limited (ABN 53 095 022 718, AFSL 230 698) (“ABAL”) as the investment manager of the Fund. ABAL in turn has delegated a portion of the investment manager function to AllianceBernstein L.P. The Fund’s Product Disclosure Statement (“PDS”) is available www.alliancebernstein.com.au or by contacting the client services team at ABAL at (02) 9255 1299. Investors should consider the PDS in deciding to acquire, or continue to hold, units in the Fund.
This information is for exclusive use of the wholesale person to whom it is provided and is not to be relied upon by any other person. It is not intended for retail or public use and may not be further distributed without the prior written consent of ABAL.
A Target Market Determination (“TMD”) for the Fund is available from our website. The TMD sets out the class of persons who comprise the target market for the Fund and the distribution conditions that are applicable, together with a number of other matters which should be considered by retail investors and their advisers.
Information, forecasts and opinions ("Information") set out on this website are not personal advice and have not been prepared for any recipient’s specific investment objectives, financial situation or particular needs. Neither the website nor the Information contained in it is intended to take the place of professional advice. Please note that past performance is not indicative of future performance, and projections, although based on current Information, may not be realised. Information can change without notice, and neither ABIMAL or ABAL guarantees the accuracy of the Information at any particular time. Although care has been exercised in compiling the Information contained on this website, neither ABIMAL or ABAL warrants that this document is free from errors, inaccuracies or omissions.
This document is released by ABAL.