ALIAX — AC Alternatives Equity Market Neutral Fund

Data updated: 2020-02-25

ALIAX — AC Alternatives Equity Market Neutral Fund. Emerging Markets Value Equity · $33.01M AUM. Holdings, fees, performance and SEC filings.

ALIAX Fund Overview

ALIAX — AC Alternatives Equity Market Neutral Fund is a US mutual fund managed by American Century Quantitative Equity Funds, Inc., categorised as Emerging Markets Value Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

ALIAX Investment Objective and Strategy

AC Alternatives Equity Market Neutral Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by American Century Quantitative Equity Funds, Inc..

Investment objective

The fund seeks capital appreciation independent of equity market conditions.

Principal investment strategy

The managers use quantitative models to construct the portfolio for the fund. The portfolio managers buy, or take long positions in, equity securities that they have identified as undervalued. They take short positions in equity securities that they have identified as overvalued. A short position arises when the fund sells a security it does not own but has borrowed in anticipation that the market price of the security will decline. If the market price in fact declines, the fund can replace the borrowed security at a lower price and capture the value represented by the difference between the higher sale price and the lower replacement price. The funds investment process is designed to maintain approximately equal dollar amounts invested in long and short positions at all times. By employing this market neutral strategy, the fund seeks to limit market risk (the effects of general market movements on the funds performance).

A market neutral strategy seeks to limit the funds volatility relative to the market. As a result of this strategy, the portfolios price movements are not expected to correlate with the markets price movements. In selecting stocks for the fund, the portfolio managers use quantitative management techniques in a two-step process. First, the managers rank stocks, generally publicly traded companies world-wide with a market capitalization greater than $1 billion, from most attractive to least attractive based on an objective set of measures, including valuation, quality, growth, and sentiment. Second, the portfolio managers use a quantitative model to build a portfolio of stocks from the ranking described above that they believe will provide the optimal balance between risk and expected return.

The portfolio managers generally sell a stock when they believe it has become less attractive relative to other opportunities, its risk characteristics outweigh its return opportunity, or specific events alter its prospects. Under normal market conditions, the fund will invest at least 80% of its net assets in equity investments. The funds use of short selling as a principal investment strategy creates leverage in an attempt to increase returns. The fund invests primarily in developed countries (including the United States), but it may also invest a portion of its assets in emerging market countries. The fund may engage in active and frequent trading of portfolio securities to achieve its principal investment strategies. This may cause higher transaction costs and may affect performance. It may also result in the realization and distribution of capital gains.

ALIAX Costs and Fees

ALIAX costs about $338 per $10,000 invested per year in fund expenses.

  • Net expense ratio: 3.38%
  • Gross expense ratio: 3.38%
  • Portfolio turnover: 307%
  • Brokerage commissions: 10.46 bps of average net assets (SEC N-CEN)

ALIAX Cashflows

Over the 12 months to 2019-12, AC Alternatives Equity Market Neutral Fund had net outflows of $24.76M, from monthly SEC N-PORT filings.

MonthNet flow
2019-12−$3.49M
2019-11−$16.37M
2019-10−$4.39M
2019-09−$695.19K
2019-08−$402.38K
2019-07$588.18K

ALIAX Debt Constituents

No individual debt constituents are reported in AC Alternatives Equity Market Neutral Fund's latest SEC N-PORT filing.

ALIAX Prospectus and SEC Filings

Official AC Alternatives Equity Market Neutral Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Other Emerging Markets Value Equity funds tracked on ABC INVEST:

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.