Dynamic Diversified Beta (DDB) Fund prepares for big school!
AB's low cost, dynamic multi-asset pooled fund will shortly celebrate its 4th birthday!
Available to UK DC and DB pension schemes, DDB is a proactively managed core growth component alternative to traditionally expensive DGFs and less well diversified passive global equities (or a combination of the two), with a smoother risk profile vs. MSCI World. For DC schemes, it fits well within the new price cap (AMC: 0.25% p.a.).
Here's why it's worth a look...
Outperformance: Strong track record vs. LIBOR +4% p.a.
Smooth risk profile: Less volatile returns than global developed market equities.
Meaningful track record: Running for 4 years in March 2015.
Proactively managed: Continually evolving the strategic asset allocation with market opportunities.
Volatility managed: Daily portfolio managed, combining quantitative and fundamental processes.
Proven experience: Part of AB's global multi-asset platform.
Open-architecture: Unconstrained in its choice of underlying fund components (all external to AB).
Value for money: 0.25% annual management charge.
Well diversified asset allocation*
North American Equities†
European Equities†
Asia ex Japan Equities†
Japan Equities†
UK Equities
Global Small Cap Equities
Emerging Markets Equities
Global Real Estate Equities
Commodities
Global Corporate Bonds
UK Government Gilts
UK Government Index–Linked Gilts
* Actual asset allocation as at 13 February 2015 † Includes currency hedging
Consistent outperformance with reduced volatility (%)
Dynamic Diversified Beta (DDB)
Cash +4%
MSCI ACWI
MSCI World
* Dynamic Diversified Beta inception date: 31 March 2011.
Performance is as at 31 December 2014, annualised, in GBP and net of TER at 0.32% p.a.
Source: MSCI World and AB
Past performance is no guarantee of future results.
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A WORD ABOUT RISK
Market Risk: The market values of the investments may rise and fall from day to day, so investments may lose value.
Interest Rate Risk: Bonds may lose value if interest rates rise or fall—long-duration bonds tend to rise and fall more than short-duration bonds.
Credit Risk: A bond’s credit rating reflects the issuer’s ability to make timely payments of interest or capital—the lower the rating, the higher the risk of default. If the issuer’s financial strength deteriorates, the issuer’s rating may be lowered and the bond’s value may decline.
Allocation Risk: Allocating to different types of assets may have a large impact on returns if one of these asset classes significantly underperforms the others.
Foreign Risk: Investing in overseas assets may be more volatile because of political, regulatory, market and economic uncertainties associated with them. These risks are magnified in assets of emerging or developing markets.
Currency Risk: Currency fluctuations may have a large impact on returns and the value of an investment may be negatively affected when translated into the currency in which the initial investment was made.
Capitalization Size Risk: Holdings in smaller companies are often more volatile than holdings in larger ones.
Past performance is neither indicative of, nor a guarantee of future results. The value of an investment in the Fund can go down as well as up and investors may not get back the full amount invested.
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.
Any references to specific securities are presented to illustrate the application of our investment philosophy only and are not to be considered recommendations. The specific securities identified and described in this presentation do not represent all of the securities purchased, sold or recommended for a portfolio, and it should not be assumed that investments in the securities identified were or will be profitable.
