Initial ETF Lineup to include the Ultra Short
Income and Tax-Aware Short Duration Municipal Strategies
NASHVILLE, Tenn., Sept. 14,
2022 /PRNewswire/ -- AllianceBernstein Holding
L.P. (NYSE: AB) and AllianceBernstein L.P., a leading global
investment management and research firm, announced today the launch
of its first set of active exchange-traded funds (ETFs) on the New
York Stock Exchange (NYSE): the AB Ultra Short Income ETF
(NYSE: YEAR) and the AB Tax-Aware Short Duration Municipal
ETF (NYSE: TAFI). Global trading firm Jane
Street will be the Lead Market Maker on both products and will
bring extensive industry experience and pricing expertise to AB's
ETFs.
"For over 50 years, AB has remained committed to innovation and
growth, continuously providing investment solutions and
capabilities to help meet expanding client needs," said
Seth Bernstein, President and Chief
Executive Officer at AB. "Launching our first of many active ETFs
is a milestone in our firm's history and a testament to not only
our talented team of professionals, but the thoughtfulness of our
unique investment strategy and dedication to our clients."
Launching active ETFs is a natural extension of AB's existing
capabilities and expertise as the firm seeks to bring products to
market that are both functional and practical for investors. AB has
prioritized fixed income solutions for the firm's first launch,
given client preference and needs on short duration yield
generating solutions in the current rising rate environment. The
firm's ETFs will make AB investment solutions even more accessible
to both existing and new clients.
AB's first active ETFs are:
- (NYSE: YEAR): The AB Ultra Short Income ETF, an
actively managed ETF, seeks to provide current income, consistent
with preservation of capital. The ETF aims to deliver higher levels
of yield relative to cash or cash-like investments, while aiming
for capital preservation in all market cycles.
- (NYSE: TAFI): The AB Tax-Aware Short Duration
Municipal ETF, an actively managed municipal bond strategy,
seeks to provide relative stability of principal and a moderate
rate of after-tax return and income. The ETF offers municipal bond
investors a distinct complement to their core allocations providing
the opportunity to help maximize after-tax income and returns using
shorter maturity bonds and opportunistic exposure to treasuries and
taxable bonds.
"Today's ETF launch is an exciting achievement for our firm,"
said Noel Archard, Global Head of
ETFs and Portfolio Solutions at AB. "ETFs have evolved into an
important execution tool across asset classes, and amidst the
recent market volatility, we feel it is critical to offer our
clients diversity and efficiency. Our first set of actively managed
Fixed Income ETFs draws on AB's deep research and expertise across
both taxable and non-taxable Fixed Income. We will build upon this
momentum to deliver an ETF lineup over time, which will reflect
AB's longstanding commitment to research excellence, investment
discipline, and our clients."
Earlier this year, the firm announced Noel Archard, CFA, joined the firm as Global
Head of ETFs and Portfolio Solutions. AB has continued to bolster
its ETF efforts with the addition of Anita
Rausch joining the firm as Global Head of ETF Capital
Markets, Julie Gunts, an AB veteran
leading Global Strategy & Partnerships, Brett Sheely as Head of ETF Specialists, and
Jason Thalmann as ETF Operations
Manager. The Global ETF team at AB has a combined average of two
decades of experience in the ETF and financial services industry.
While AB is starting with active fixed income ETFs in the U.S., its
intent over time is to expand globally among multiple asset
classes.
For more information on AB's ETF's, please visit
www.ABFunds.com/go/ETFs.
About AllianceBernstein
AllianceBernstein is a leading global investment management firm
that offers high-quality research and diversified investment
services to institutional investors, individuals, and private
wealth clients in major world markets. As of August 31, 2022,
AllianceBernstein had $667 billion in assets under
management. Additional information about AB may be found on our
website, www.alliancebernstein.com.
Risks to Consider
Investing in ETFs involves
risks, including loss of principal.
YEAR—Market Risk: The market values of the
portfolio's holdings rise and fall from day to day, so investments
may lose value. Interest-Rate Risk: As interest rates rise,
bond prices fall and vice versa; long-term securities tend to rise
and fall more than short-term securities. Credit Risk: A
bond's credit rating reflects the issuer's ability to make timely
payments of interest or principal—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. Inflation Risk: Prices for goods and
services tend to rise over time, which may erode the purchasing
power of investments. Other Investment Companies Risk: To
the extent the Fund invests in other funds, shareholders will bear
layers of asset-based expenses (to the extent these expenses are
not reimbursed), which could reduce returns. Foreign (Non-US)
Risk: Non-US securities may be more volatile because of the
political, regulatory, market and economic uncertainties associated
with such securities. Fluctuations in currency exchange rates may
negatively affect the value of the investment or reduce returns.
These risks are magnified in emerging or developing markets. New
Fund Risk: The Fund is recently organized, giving prospective
investors a limited track record on which to base their investment
decision.
TAFI—Bond Risk: The Fund is subject to the
same risks as the underlying bonds in the portfolio, such as credit
and interest-rate risk. As interest rates rise, the value of bond
prices will decline. Below-Investment-Grade Securities Risk:
Investments in fixed-income securities with lower ratings (aka
"junk bonds") are subject to a higher probability that an issuer
will default or fail to meet its payment obligations. These
securities may be subject to greater price volatility due to such
factors as specific municipal or corporate developments and
negative performance of the junk bond market generally, and may be
more difficult to trade than other types of securities.
Municipal Market Risk: Economic conditions, political or
legislative changes, public health crises, uncertainties related to
the tax status of municipal securities or the rights of investors
in these securities may negatively impact the yield or value of a
municipal security. Tax Risk: The US government and Congress
may periodically consider changes in federal tax law that could
limit or eliminate the federal tax exemption for municipal bond
income, which would in effect reduce the income shareholders
receive from the Fund by increasing taxes on that income.
Derivatives Risk: Investing in derivative instruments such
as options, futures, forwards or swaps can be riskier than
traditional investments, and may be more volatile, especially in a
down market. Below-Investment-Grade Securities Risk:
Investments in fixed-income securities with lower ratings (commonly
known as "junk bonds") tend to have a higher probability that an
issuer will default or fail to meet its payment obligations.
Leverage Risk: Trying to enhance investment returns by
borrowing money or using other leverage transactions such as
reverser purchase agreements magnifies both gains and losses,
resulting in greater volatility. New Fund Risk: The Fund is
recently organized, giving prospective investors a limited track
record on which to base their investment decision.
Investors should consider the investment objectives,
risks, charges and expenses of the Fund/Portfolio carefully before
investing. For copies of our prospectus or summary prospectus,
which contain this and other information, visit us online at
abfunds.com or contact your AB representative. Please read the
prospectus and/or summary prospectus carefully before
investing.
AllianceBernstein ETFs are distributed by Foreside Fund
Services, LLC, in the US only.
© 2022 AllianceBernstein
L.P.
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SOURCE AllianceBernstein