HEAD-TO-HEAD: Alliance Bernstein versus MFS

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Source: FE Fundinfo. Three-year cumulative returns in US dollars.

Performance

Given its flexible approach, AB Select US Equity can at times be more value or growth-leaning, but it generally remains within the “blend column” of the Morningstar style box, Wolfstetter said.

Hence, it sits in Morningstar’s US Large-Cap Blend Equity category, while MFS Meridian US Value is assigned to the US Large-Cap Value Equity category. As a result, relative returns will be affected by stylistic effects.

AB Select US Equity has delivered on its objective of protecting capital better than its blend-oriented peers in adverse markets.

MFS Meridian US Value also focuses on mitigating downside risk, while it tends to underperform on the upside. Additionally, the fund leans a bit more to growth than its typical value rival and the Russell 1000 Value Index, which hurts when value stocks rally relative to growth stocks, said Wolfstetter.

“MFS Meridian US Value will tend to outperform AB Select US Equity during a style rotation towards value, but it generally offers less downside protection,” she said.

The MFS Meridian fund has generated a 60.48% three-year cumulative return, in US dollars, according to FE Fundinfo, outperforming its benchmark Russell 1000 Value (59.32%), but underperforming the sector average (74.52%).

Its annualised volatility of 21.41% during the same period is lower than its benchmark index (22.65%) but higher than its sector average (18.87%).

The AB fund has generated an 88.01% three-year cumulative return, in US dollars, according to FE Fundinfo, worse than its benchmark S&P 500 (91.81%) but better than its sector average (74.52%).

Its annualised volatility of 19.23% during the same period is lower than its benchmark index (20.43%) but higher than its peer average (18.87%).

Discrete calendar year performance

Source: FE Fundinfo & fund factsheets. Annual returns in US dollars.  *31 Dec 2021 – 12 January 2022

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