Jen Driscoll, Chief Executive Officer of AB in Australia, said: “We’re delighted that AB’s Managed Volatility Equities Fund is now accessible via the netwealth Platform. The Fund—which achieved a total (net of fees) fund return of 26.6% in its first year, with almost half the volatility of the FTSE ASFA Australia 300 Index—has delivered excellent returns by smoothing the ride for investors during periods of market volatility.”

Roy Maslen, Chief Investment Officer—Australian Equities, said: “In the past year, the Fund’s best relative returns have been during months when the index fell sharply, but the Fund fell significantly less, resulting in a higher return overall, at a lower volatility, which is exactly what it is designed to do.

“Australian investors—particularly those in or near retirement—are increasingly demanding investment products that provide more certainty, while still participating in growth and volatility for the Fund during the period was 48% less than that of its benchmark, after including franking credits*,” said Maslen.

The Fund, which charges a management fee of 0.55%, invests primarily in Australian equities and is designed for investors seeking lower volatility, reduced downside risk in falling equity markets, the potential for long-term capital growth and some income, including franked Australian dividend income.

It aims to reduce volatility by identifying, and investing in, high-quality listed equity securities which have reasonable valuations, high-quality cash flows and relatively stable share prices.

While likely to lag a rising market, the Fund is expected to benefit from the so-called “low-volatility paradox”—a well-researched and well-documented phenomenon in which low-volatility stocks tend to outperform higher-volatility stocks on a risk-adjusted basis over time.

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