AB Tax Advantaged Balanced Direct Index Portfolio (SMA)
Overview
Index tracking tax managed equity portfolio combined with high-quality actively-managed municipal bonds
About this Strategy
- Balanced portfolio that combines Tax Advantaged US Large Cap Equities with actively-managed Municipal bonds, including barbell and targeted portfolios
- Offered at five asset allocations, from conservative to aggressive
- Portfolio serves as core balanced beta exposure, with a focus on delivering higher after-tax returns through active tax-loss harvesting in both equities and municipal bonds
Investment Approach
- 300-400 US Large cap stocks and 15-40 Individual Municipal Bonds
- Employs AB’s proprietary rebalancing approach to reduce tax costs
Meet The Team
At AB
Experience
At AB
Experience
At AB
Experience
Equity
Literature
Additional Information
Investment Definitions
Alpha is the risk-adjusted measurement of "excess return" over a benchmark. Beta is a measure of an investment’s volatility in comparison to the market as a whole. Duration is a measure of the sensitivity of an asset or portfolio’s price to interest rate movements. Information ratio is a measurement of portfolio returns beyond the returns of a benchmark, compared to the volatility of those returns. R-squared is the percentage of a portfolio’s price movements that can be explained by movements in a benchmark index. Sharpe ratio is a measure of the fund’s return relative to the investment risk it has taken. A higher Sharpe ratio means the fund’s returns have been better given the level of risk the fund has taken. Standard deviation is a measure of the dispersion of a portfolio’s return from its mean. Tracking error is the difference in actual performance between a portfolio and its corresponding benchmark. Up capture measures the percentage of market gains captured when markets are up. Down capture measures the percentage of market losses endured when markets are down.
Risks To Consider
-
Interest Rate Risk: As interest rates rise, bond prices fall and vice versa, long-term securities tend to rise and fall more than short-term securities.
-
Market Risk: The market values of the portfolio’s holdings rise and fall from day to day, so investments may lose value.
-
Municipal Market Risk: Economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities may negatively impact the yield or value of a municipal security.
-
Past performance does not guarantee future results. There is no assurance that a separately managed account will achieve its investment objective.
Separately managed accounts are subject to market risk, the market values of securities owned will fluctuate so that your investment, when redeemed, may be worth more or less than its original cost.
AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the manager of the funds.
AB mutual funds may be offered only to persons in the United States and by way of a prospectus. This website should not be considered a solicitation or offering of any investment products or services to investors residing outside of the United States.
Investment Products Offered:
Are Not FDIC Insured | May Lose Value | Are Not Bank Guaranteed
The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein® is a registered service mark used by permission of the owner, AllianceBernstein L.P..
Looking for More Information on AB Tax Advantaged Balanced Direct Index Portfolio (SMA)
Feel free to get in touch with our team, and we will get back to
you as soon as possible.