AB Asset Management "Launches Monthly Payout US Income Bond Fund"

[Asia Economy Reporter Minji Lee] AllianceBernstein Asset Management (hereinafter AB Asset Management) announced on the 31st that it has launched the ‘AB Monthly Payout U.S. Income Securities Investment Trust,’ which invests in U.S. dollar-denominated bonds and pays monthly distributions in cash.

This fund is a fund of funds investing in the ‘AB FCP I ? American Bond Income Portfolio’ (the investee fund) established in Luxembourg. It pursues the same investment strategy as the ‘AB U.S. Income Securities Investment Trust’ launched by AB Asset Management last year, but it is characterized by estimating cash flows based on interest income generated from bonds held by the investee fund and paying monthly distributions accordingly. The monthly distributions paid are determined according to the number of units held by the investor.

The investee fund is managed using a credit barbell strategy that includes assets with different risk factors in one portfolio, allowing flexible responses to each risk depending on market conditions. The credit barbell strategy simultaneously invests in U.S. Treasury bonds and investment-grade bonds sensitive to interest rate risk, as well as high-yield corporate bonds sensitive to credit risk, thereby pursuing both stability and profitability.

The manager expects that the proportion of speculative-grade bonds, including high-yield bonds and emerging market bonds, will not exceed 50% of the total portfolio, generally excluding bonds rated CCC or below to reduce volatility and aim for stable profits.

Yoo Jaeheung, Senior Portfolio Manager of the Bond Division at AB Asset Management, said, “The ‘AB Monthly Payout U.S. Income Bond Fund’ is a product faithful to the basics of bond investment, which is to ‘hold a strategically well-diversified portfolio from a long-term perspective.’ He added, “Because it returns a certain percentage of the investment amount in cash every month, it is suitable for retirees who want to increase their monthly income streams or investors who want to secure stable cash flow.”

This fund is available for subscription through Hanwha Investment & Securities and SC First Bank, and the number of distributors will be expanded in the future.

This content was produced with the assistance of AI translation services.