AB Asset Management Launches AB Monthly Income US Growth Fund

AllianceBernstein Asset Management (AB Asset Management) announced on the 11th the launch of the ‘AB Monthly Distribution U.S. Growth Securities Investment Trust,’ which selectively invests in large-cap U.S. growth stocks and pays monthly distributions.

The AB Monthly Distribution U.S. Growth Fund is a fund of funds investing in the ‘AB SICAV I ? American Growth Portfolio’ established in Luxembourg. It follows the same investment strategy as the AB U.S. Growth Securities Investment Trust launched in 2010. The difference lies in paying monthly distributions by considering the past investment performance of the underlying fund, economic conditions, and the long-term impact on capital.

The distinctive feature is providing monthly distributions while investing in growth stocks rather than dividend stocks. Since the underlying fund invests long-term in the U.S. stock market, which includes many high-quality companies, it is expected to secure stable distribution resources through solid fundamentals and continuous earnings growth.

Monthly distributions are paid according to the number of units held by investors. The record date is the 20th of each month, and distributions are paid on the 5th business day after the record date.

The AB Monthly Distribution U.S. Growth Fund aims to pay monthly distributions at a stable distribution rate but is designed to allow adjustments when necessary, such as during periods of high volatility in the U.S. stock market. This enables flexible responses to changes in market conditions while maintaining stable distributions over the long term.

Lee Chang-hyun, CEO of AB Asset Management, said, "Last year, excluding ETFs, the ‘AB Monthly Distribution Global High Yield Securities Investment Trust’ showed the highest increase in assets under management among overseas public funds compared to the previous year, indicating a very high interest in monthly distribution products in the domestic investment market." He added, "Reflecting investors’ needs, we launched the U.S. Growth Fund with a monthly distribution structure. Going forward, we will continue to introduce differentiated products based on our global management capabilities and proven investment strategy know-how."