Benefits of investing in the AllianceBernstein Managed Volatility Equities Fund

• Volatility management: An equity investment that seeks to reduce volatility and limit downside risk in falling equity markets while capturing most of the upside in rising markets.

• Capital growth and income: Potential for long-term capital growth with some income, including franked Australian dividend income.

• Tax efficient: Strategies that aim to enhance after tax returns.

• Professional management: Access to experienced AB investment professionals and their investment processes including their proprietary research, asset selection and risk management capabilities.

• Ongoing information: Regular investment statements and annual tax statements to keep you fully informed about your investment.

Risk level

High

Investor suitability

The Fund is designed for equity investors, including retirees and pre-retirees, 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.

About the Fund

The Fund invests mainly in Australian Securities Exchange (ASX) listed shares with up to 20% of its assets in global developed market shares and has the ability to hold up to 20% in cash, for example as a short term defensive measure at times of heightened equity market volatility.

The Fund implements a managed volatility equities strategy that aims to reduce volatility by identifying, and investing in, high quality listed equity securities that have reasonable valuations, high quality cash flows and relatively stable share prices.

The Fund does not always hedge the foreign currency exposures of its global equity assets to Australian dollars but the investment manager has the discretion to determine the extent to which any foreign currency exposure is reduced or removed. For example, the investment manager may decide not to remove a foreign currency exposure if it believes it offers defensive characteristics which would assist in lowering the volatility of the Fund.

How we invest your money

Asset classes and allocation ranges

The following asset allocations are the expected ranges over the medium to long term but they can be exceeded over the short term:

• Australian Shares 60%-100%

• Global Shares 0%-20%

• Cash 0%-20%

The Fund may also invest in preference shares, rights, convertibles, warrants, securities we reasonably expect to be listed within six months including initial public offerings, listed trusts and/or other synthetic foreign equity securities.

Derivatives may be used to manage risks, invest cash, manage volatility and gain or reduce investment exposures. Derivatives will not be used for leveraging or gearing purposes.