NASHVILLE, Tenn., May 15, 2023
/PRNewswire/ -- AllianceBernstein Holding L.P. (NYSE: AB) and
AllianceBernstein L.P., a leading global investment management and
research firm, announced today the launch of AB High Yield ETF
(HYFI) as an active exchange-traded fund (ETF) on the New York
Stock Exchange (NYSE).
"The AB High Yield ETF broadens our offerings for clients by
ultimately supplying them with a flexible vehicle to weather
various market conditions," said Global Head of ETFs and Portfolio
Solutions Noel Archard. "We remain focused on enhancing our ETF
suite to meet our clients' ever-evolving needs, and this launch
unlocks a new opportunity to invest in additional income-generating
products."
The investment objective of HYFI is to seek to maximize total
return consistent with prudent investment management. HYFI invests
at least 80% of its net assets in US high-yield corporate bonds
(fixed-income securities rated Ba1 or lower by Moody's or BB+ or
lower by S&P Global Ratings or Fitch Ratings, or comparable
unrated securities) and related derivatives. It seeks to provide
income by emphasizing three pillars: broad diversification, dynamic
beta exposures, and AB's quantitative and fundamental research.
"Following the success of our initial Fixed Income and Equity
active ETFs, the addition of the AB High Yield ETF represents
another exciting milestone for the ETF, Fixed Income and broader
teams at AB," said Head of Global Client Group and Head of Private
Wealth Onur Erzan. "This HYFI ETF will be actively managed by a
team of Fixed Income experts whose industry knowledge, innovative
technology platform and commitment to clients is unparalleled."
"The NYSE is pleased to welcome the AB High Yield ETF to NYSE
Arca, the world's largest and most liquid exchange for the listing
and trading of ETFs," said Head of Exchange Traded Products at the
NYSE Douglas Yones. "Now home to six AB ETFs, NYSE Arca continues
to support the ETF ecosystem's growth with industry-leading market
quality, world-class technology and a focus on ETF education."
Today's official launch of HYFI represents the successful
completion of the firm's first mutual fund to ETF conversion. The
planned conversion of AB High Yield Portfolio, a series of AB Bond
Fund, Inc. into AB High Yield ETF, a series of AB Active ETFs, Inc.
was first announced in February.
For more information and to learn more about AB's ETF platform,
visit www.alliancebernstein.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 April 30, 2023,
AllianceBernstein had $676 billion in assets under
management. Additional information about AB may be found on our
website, www.alliancebernstein.com.
Disclosures:
Investment Objective:
The Fund's investment objective is to seek to maximize total return
consistent with prudent investment management. Principal
Strategies: The Fund invests, under normal circumstances, at
least 80% of its net assets in fixed-income securities rated Ba1 or
lower by Moody's Investors Service, or BB+ or lower by S&P
Global Ratings or Fitch Ratings, or the equivalent by any
nationally recognized statistical rating organization (commonly
known as "junk bonds"); unrated securities considered by AB to be
of comparable quality; and related derivatives. The AB High Yield
ETF may invest in fixed-income securities with a range of
maturities from short- to long-term. The AB High Yield ETF may also
invest in equity securities. In selecting securities for purchase
or sale by the Fund, AB attempts to take advantage of
inefficiencies that it believes exist in the global debt markets.
These inefficiencies arise from investor behavior, market
complexity, and the investment limitations to which investors are
subject.
AB combines quantitative analysis with fundamental credit and
economic research in seeking to exploit these inefficiencies. The
AB High Yield ETF invests most often in securities of U.S. issuers
but may also purchase fixed-income securities of foreign issuers,
including securities denominated in foreign currencies and
securities of emerging market issuers. The Fund expects to use
derivatives, such as options, futures contracts, forwards, and
swaps, to a significant extent, subject to the limits of applicable
law.
Beta Definition: Beta measures the
sensitivity of an investment to the movement of its benchmark. A
beta higher than 1.0 indicates the investment has been more
volatile than the benchmark and a beta of less than 1.0 indicates
that the investment has been less volatile than the
benchmark.
Investing in securities involves risk and there is no
guarantee of principal.
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
www.alliancebernstein.com or contact your AB representative. Please
read the prospectus and/or summary prospectus carefully before
investing.
Shares of the ETF may be bought or sold throughout the day at
their market price on the exchange on which they are listed. The
market price of an ETF's shares may be at, above or below the ETF's
net asset value ("NAV") and will fluctuate with changes in the NAV
as well as supply and demand in the market for the shares. Shares
of the ETF may only be redeemed directly with the ETF at NAV by
Authorized Participants, in very large creation units. There can be
no guarantee that an active trading market for the Fund's shares
will develop or be maintained, or that their listing will continue
or remain unchanged. Buying or selling the Fund's shares on an
exchange may require the payment of brokerage commissions and
frequent trading may incur brokerage costs that detract
significantly from investment returns.
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: Changes in interest
rates will affect the value of investments in fixed-income
securities. When interest rates rise, the value of existing
investments in fixed-income securities tends to fall and this
decrease in value may not be offset by higher income from new
investments. Interest rate risk is generally greater for
fixed-income securities with longer maturities or durations.
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. 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. Duration Risk: Duration is a measure
that relates the expected price volatility of a fixed-income
security to changes in interest rates. Inflation Risk:
Prices for goods and services tend to rise over time, which may
erode the purchasing power of investments. 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. Leverage
Risk: Trying to enhance investment returns by borrowing money
or using other leverage tools—magnify both gains and losses,
resulting in greater volatility. Foreign (Non-US)
Investments Risk: Non-US securities may be more volatile
because of 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. Currency Risk: Fluctuations in currency exchange
rates may negatively affect the value of the Fund's investments in
fixed-income securities denominated in foreign currencies or reduce
the Fund's returns. Illiquid Investments Risk:
Illiquid investments risk exists when certain investments are or
become difficult to purchase or sell. Difficulty in selling such
investments may result in sales at disadvantageous prices affecting
the value of your investment in the Fund. Authorized
Participant Risk: Only a limited number of financial
institutions that enter into an authorized participant agreement
with the Fund ("Authorized Participants") may engage in creation or
redemption transactions. If the Fund's Authorized Participants
decide not to create or redeem shares, Fund shares may trade at a
premium or discount to the Fund's NAV, or the Fund could face
trading halts or de–listing.
AllianceBernstein L.P. (AB) is the investment adviser for
the Funds. Distributed by Foreside Fund Services, LLC. Foreside is
not related to AB.
The [A/B] logo is a registered
service mark of AllianceBernstein and AllianceBernstein®
is a registered service mark used by permission of the owner,
AllianceBernstein L.P
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SOURCE AllianceBernstein