Fund Rationale: AB American Income Portfolio Fund

AB American Income Portfolio Fund (the "Fund")
SGD Hedged Class I2 Accumulation Shares (ISIN: LU1309713003)
Fund Manager Page

Endowus has selected the Fund because its highly experienced investment team offers a diversified portfolio of US debt, managed systematically for the long term to achieve its objective of providing attractive income and preserving capital

Key Information

Fund Objective: Aims to provide a high level of current income consistent with preservation of capital by employing a US dollar-denominated multi-sector bond approach.

Suitability: Investors who have medium to higher risk tolerance, and are seeking the medium to long-term rewards of global fixed-income investment.

* Total Fund-level Fees include fund management fee of 0.55%.
** 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: 1 July 1993
Share Class Inception: 24 December 2015
Benchmark: Bloomberg Barclays US Aggregate Bond

Fund AUM: SGD 33.8bn
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 31 March 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 American Income Portfolio Fund as its highly experienced investment team offers a diversified portfolio of US debt, managed systematically for the long term to achieve its objective of providing attractive income and preserving capital by balancing duration and credit risk.

Using the time-tested credit barbell approach, which has been in use since the Fund’s inception in 1993, the Fund allocates at least half of its basket to US Treasury and US Investment Grade Securities, and tactically allocates the remainder to “riskier” sectors such as US High Yield, Securitised Assets, and even Emerging Markets Sovereign and Corporate Securities. The investment team works with a strong diversification mandate, and the resulting portfolio is designed to mitigate drawdowns and volatility while opportunistically harvesting yield from various sources and generating favourable total return in all market environments.

The Strategy is managed by a highly experienced and stable portfolio management team with an average experience of nearly 25 years, consisting of 3 Lead Portfolio Managers and 5 Senior Portfolio Managers who act as sector specialists. The team is further supported by AB’s strong credit and quantitative research analysts utilising robust technological platforms to facilitate an efficient decision making process. The overall investment process systematically reviews quantitative and fundamental research output through a top-down macro and bottom-up sector lens, with ESG consideration implemented as an added benefit. 

Although the Fund, driven by its exposure to riskier assets, has shown a relatively higher volatility in the past as it was riding through multiple market cycles for more than two decades since inception, it nevertheless offers one of the best solutions for investors seeking its investment objective of achieving attractive income and capital preservation, as shown through its historically consistent and strong levels of payouts, and the resulting attractive total return. This Fund can be used as a core US fixed income exposure within a portfolio of other fixed income solutions. 


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.