AB FlexFee Funds
01 mins 36 secs
Today’s investors want performance that’s worth the fees they pay. Low-cost passive vehicles, with their market-like returns, may seem to fit the bill. But you face all the downside when markets fall. And with no active management, there’s never a chance to beat the market. Is there something that offers investors the best of both worlds? The answer is AB FlexFee funds. These innovative funds have flexible fees that rise only when the fund beats the benchmark. Here’s how it works: They charge a low, ETF-like fee when their returns are lower than—or in line with their benchmark. As the Funds’ outperformance versus the benchmark rises, fees rise. But fees can increase only up to a pre-set maximum…no matter how much the Funds’ excess returns grow. Even when there’s substantial outperformance, fees for the FlexFee Funds are still competitive with those of other active managers. And FlexFee Funds have an annual reset. This means you’ll never pay higher fees based on performance in past years. AB’s FlexFee Funds…offering investors the best of the active and passive investing worlds.Transcript
Today's investors want performance that's worth the fees they pay. Low-cost passive vehicles may seem to fit the bill, but you face all the downside when markets fall. And with no active management, there's never a chance to beat the market. Is there something that offers investors the best of both worlds? AB FlexFee Funds have flexible fees that rise only when the Fund beats the benchmark. They charge a low ETF-like fee when returns are lower than or in line with their benchmark. And as outperformance against the benchmark rises, fees rise, but only as high as a preset maximum—no matter how much the fund outperforms.