Fund Rationale: AB Low Volatility Equity Portfolio Fund

AB Low Volatility Equity Portfolio Fund (the "Fund")
SGD Hedged Class I Accumulation Shares (ISIN: LU1037949515)
Fund Manager Page

Endowus has selected the Fund for its ability to offer downside protection during market downturns through its exposure to Quality, Stability, and Reasonable Price, underpinned by the discipline of "winning by losing less".

Key Information

Fund Objective: Aims to achieve long-term capital growth by identifying equity securities of predominantly developed markets, believed to have fundamentally lower volatility and less downside risks in the future and constructing a portfolio that seeks to minimise volatility while maximising quality exposure.

Suitability: Investors who have a higher risk-tolerance and are seeking the medium to long term rewards of equity investment.

* Total Fund-level Fees include fund management fee of 0.7%.
** Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 11 December 2012
Share Class Inception: 20 March 2014
Benchmark: MSCI World Index

Fund AUM: SGD 4.6bn
Source: MorningStar as of 27 May 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:

Sector Allocation:

Source: MorningStar as of 30 April 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.

Selection Criteria

Endowus has selected the AB Low Volatility Equity Fund because of its ability to offer downside protection during market downturns through its consistent investment style of gaining balanced exposure to Quality, Stability and Reasonable Price. The investment philosophy that underpins the strategy is “winning  by losing less”. The strategy is designed to limit the downside risk during market volatility, by employing a disciplined, bottom-up investment process that integrates their proprietary research to select investments in businesses that are of higher quality than the market, with cash flows that are more stable than the market but where the market has not fully priced these attributes. Over the full market cycle, the process has worked to offer downside protection during market drawdowns and the Fund has realised a lower volatility and beta than its benchmark. 

In addition, we like that the Fund integrates ESG factors in its fundamental process. Analysts need to consider the environmental, social and governance aspects of a company and provide a proprietary rating, and this would have an impact on the investment thesis and conviction in the company.  

Finally, the Fund is also competitively priced against its peers. 

Investors should note that the design of the strategy is such that it does not necessarily capture all of the market performance when the market goes up. It has historically offered equity-market-like returns over a full cycle with less volatility. Returns tend to be smoothed out over time. Therefore when selecting this fund it will be worthwhile to consider the overall return and risk profile that you would like to have and complement your selection with other funds if needed.


Updated by Endowus: June 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.