Helping You Handle Volatility
For much of the last decade equity markets were relatively calm. But times have changed. Through a combination of inflation, interest rates, geopolitical tensions, tariffs and AI – it looks likely that volatility is here to stay. At AllianceBernstein, our team of global investment specialists have been handling volatility for over a decade. And we can provide the tools and support you need to ensure you, and your clients stay on track during these volatile times.
Support for Financial Advisers
The prudent adviser understands that it is in times of volatility that their professional skill will be most valuable. The abilities to respond thoughtfully, provide calming interpretations and conduct supportive conversations restore clients’ confidence in the future.
Defensive Strategies for the Road Ahead
Smooth the ride by managing volatility
The AB Managed Volatility Equities Fund - MVE Class - Active ETF 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.
Designed to help investors stay the course
The AB Global Strategic Core Equities Fund is designed to capture 90% of every market rally and fall only 70% as much as the market during a sell off. The secret to delivering on the 90/70 potential lies in finding quality stocks with stable trading patterns and attractive prices.
Navigating the terrain
Volatile markets can experience sudden fluctuations in prices and uncertainty. And when markets turn, investors can be tempted to run for the exits. But history teaches us that this approach can be expensive. As the chart shows, missing the best 5 days of the S&P 500 over a given timeframe can significantly reduce your overall return.
Which is where the role of the adviser becomes increasingly important. It’s up to you to maintain a steady hand on the handlebars to navigate through the ups and downs effectively.
Just as a skilled cyclist can handle rough terrain with confidence and adaptability, your clients are looking to you to help them stay focused, stay balanced, and be ready to adjust their strategies as needed to ride out the turbulence.
Timing the Market Means Getting out and Getting Back In
Past performance does not guarantee future results.Annualized trailing three-year daily returns of S&P 500 and trailing three years daily returns where the best five days are excluded are calculated every business day from January 1991 (trailing three years goes back to January 1988) to end March 2025. The average of these returns is then calculated to give the results in the chart.
As of March 31, 2025
Source: Bloomberg, Lipper, S&P and AllianceBernstein (AB)
Client tools
We have prepared a range of tools to support you with your client conversations. If you have other ideas of how we can help, please get in touch.
Understanding and embracing volatility is crucial for those looking to build wealth over the long term. Please feel free to use these articles in your client newsletters to help educate your clients about volatility.
Related Insights
Looking for More Fund Information?
AllianceBernstein Investment Management Australia Limited (ABN 58 007 212 606, AFSL 230 683) (“ABIMAL”) is the responsible entity and issuer of units in the following Funds: the AB Managed Volatility Equities Fund - MVE Class - Active ETF APIR ACM0006AU (a unit class of the AB Managed Volatility Equities Fund (ARSN 099 739 447)), the AllianceBernstein Global Equities Fund (ARSN 099 296 607), the AllianceBernstein Dynamic Global Fixed Income Fund (ARSN 165 810 686), the AB Sustainable Global Thematic Equities Fund (ARSN 659 443 320) and the AB Global Strategic Core Equities Fund (ARSN 680 787 535). ABIMAL has appointed AllianceBernstein Australia Limited (ABN 53 095 022 718, AFSL 230 698) (“ABAL”) as the investment manager of the Funds. Product Disclosure Statement (“PDS”) are available for each Fund by contacting the client services team at AllianceBernstein Australia Limited at (02) 9255 1299 or at www.AllianceBernstein.com.au. Investors should consider the PDS in deciding to acquire, or continue to hold, units in the relevant Fund.
ABIMAL is the portfolio manager of AB Concentrated US Growth Managed Portfolio. Investors will not be able to invest in the Portfolio directly but only through an Investor Directed Portfolio Service (IDPS) or other managed account service under arrangements between the investor and the IDPS operator or the managed account provider (each an “Operator”).
The Operator will be responsible for the implementation of the Portfolio on behalf of an investor including the purchase and sale of any security in connection with the establishment of, or changes to, the Portfolio. The actual portfolio held by the Operator on behalf of the investor may vary from the Portfolios as constructed by ABIMAL. ABIMAL is not responsible for monitoring the Operator’s implementation of any Portfolios.
This information is for exclusive use of the wholesale person to whom it is provided and 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 prior written consent of ABAL.
A Target Market Determination (“TMD”) for the funds is available free of charge from our website www.alliancebernstein.com.au. The TMD sets out the class of persons who comprise the target market for the funds 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 set out in this document are not personal advice and have not been prepared for any recipient’s specific investment objectives, financial situation or particular needs. Neither this document nor the information contained in it are 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, forecasts and opinions (“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 in this report, neither ABIMAL or ABAL warrants that this document is free from errors, inaccuracies or omissions.
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