The investment decision is part of the industry fund’s strategy aimed at lowering volatility in members’ portfolios, according to a statement released by AB.
MIESF chief investment officer Mary McLaughlin said: “We share the fund’s objective of delivering lower-volatility investment performance, giving our members comfort that their capital is growing steadily during the accumulation phase and mitigating the sequencing risk around retirement.”
The AB Managed Volatility Equities Fund reduces volatility by identifying and investing in high-quality, listed equity securities that have high valuations, high-quality cash flows and relatively stable share prices, AB said.
AB chief executive officer Jen Driscoll noted that, “AB’s innovative approach to navigating volatile market conditions was receiving growing support among investors, given its potential to play a role in both pre- and post-retirement solutions.”
From inception in 31 March 2014 to 28 February 2015, the Managed Volatility Equities Fund returned 24.43 per cent after fees – compared to a benchmark return of 15.48 per cent, AB said.
“We’re delighted to have been awarded this mandate, and look forward to working with MIESF in helping them to achieve their objectives for their members,” said Ms Driscoll.
