Investment Philosophy / Process

Although many investors have long-term capital growth objectives, they also are worried about the impact of market declines and short-term volatility. Low-volatility equity strategies have emerged as potentially attractive options for addressing this concern. 1290 Low Volatility Global Equity Fund is designed for investors looking to capture the advantages of investing in equities with lower volatility while remaining invested in the global equity markets.

1290 Low Volatility Global Equity Fund offers:

  • A strategic mix of global equities professionally monitored and rebalanced.
  • Equity investments exchange-traded funds (ETFs) with lower relative volatility — each carefully evaluated, selected and monitored by 1290 Asset Managers.
  • Broad equity diversification among U.S., international and emerging markets.

Why Low Volatility?

Low-volatility equity strategies have been embraced by large institutional investors, as well as individuals, due to their risk-tempering characteristics. These strategies can participate in both rising and falling stocks markets. Relative to broad equity benchmarks (such as the S&P 500 Index), historically low volatility strategies tend to:

  • Underperform equity benchmarks in rising markets.
  • Perform better than equity benchmarks in falling markets. This helps to smooth investment returns over full market cycles, making the ride smoother and gentler for investors. It also helps investors avoid the urge to limit losses by selling equities in falling markets.

How the Fund invests

The Fund pursues its investment objective by investing in exchange-traded securities of other investment companies or investment vehicles (“Underlying ETFs”). Under normal market conditions, the Fund will invest in Underlying ETFs that, in turn, invest substantially all of their assets in equity securities that have lower absolute volatility than the broader markets in which the ETF invests. Volatility is one way to measure risk and, in this context, refers to the tendency of investments and markets to fluctuate over time. Stocks that exhibit lower absolute volatility may, over a market cycle, be able to earn investment returns comparable to market returns but with less volatility than the markets.

Fund Objective

The Funds seeks long-term capital appreciation while managing portfolio volatility.

Fund Details

  Class I
Ticker TNZIX
CUSIP 68246Y304
ISIN US68246Y3045
Investment Minimum* $1,000,000 for certain
institutions and individuals
• $1,000 for certain
employees (or their
immediate family
members) of AXA
Financial or its
subsidiaries
• Class I Shares are
available to clients of
registered investment
advisers who have
$250,000 invested in
the Fund

*Read the Prospectus for more information.

Portfolio Managers

1290 logo

Kenneth T. Kozlowski, CFP, CLU, ChFC

Chief Investment Officer of 1290 Asset Managers

Kenneth Kozlowski, Chief Investment Officer of 1290 Asset Managers, leads a dedicated team responsible for asset allocation and rebalancing functions used in connection with the 1290 Funds®. In 2010, Mr. Kozlowski became the head of the Investment Management Services ("IMS") unit within 1290 Asset Managers. IMS includes the Portfolio Analytics Group which is responsible for subadviser selection, screening and monitoring. Mr. Kozlowski, who joined the company in 1999, has more than 25 years' experience in the mutual fund business. He is Certified Financial Planner (CFP), Chartered Life Underwriter (CLU), and a Chartered Financial Consultant (ChFC). He holds memberships in the Financial Planning Association and the Society of Financial Service Professionals. Mr. Kozlowski graduated from Swarthmore College in Swarthmore, PA with a B.A. in Economics.

Alwi Chan, CFA®

Deputy Chief Investment Officer of 1290 Asset Managers

Alwi Chan is the Deputy Chief Investment Officer of 1290 Asset Managers. Mr. Chan is head of 1290 Asset Manager's Portfolio Analytics team. Mr. Chan joined AXA Financial in June 1999, having previously worked at D.E. Shaw & Co. and Arthur Anderson. He holds a Bachelor of Economics from Trisakti University in Jakarta, Indonesia and an MBA from Tulane University. Mr. Chan is a CFA® charterholder.

Xavier Poutas, CFA®

Assistant Portfolio Manager of 1290 Asset Managers

Xavier Poutas is an Assistant Portfolio Manager of 1290 Asset Managers. Mr. Poutas joined the company in October 2004 as a Fund Administrator and transferred to the Asset Allocation team within the Investment Management Services group in June 2007. Mr. Poutas assists in portfolio analysis, rebalancing and portfolio performance evaluation with respect to the Allocation Portfolio's ETF Investments. Mr. Poutas received his MS in Accounting and Finance from the University of Nantes (France) in 2000 and his B.B.A. in Accounting and Finance in 1999 from Ecole Superieure des Sciences Commerciales d'Angers (France). Mr. Poutas is a CFA® charterholder.

Miao Hu, CFA®, CAIA®

Assistant Portfolio Manager of 1290 Asset Managers

Miao Hu is an Assistant Portfolio Manager of 1290 Asset Managers. She has served as a portfolio manager of 1290 Asset Managers since April 2016. Miao has also served as a member of the portfolio analytics team since November 2013. Before joining the company, Ms. Hu was a Financial Services Sector Specialist at FactSet Research Systems from January 2012 to November 2013, a Senior Research Analyst at Strategic Insight from February 2008 to December 2011. Ms. Hu received her M.S in Communications from University of Ulster, Northern Ireland, UK in 2003. Ms. Hu is a CFA® charterholder and CAIA® member.

CFA is a registered trademark of the CFA Institute.

CAIA is a registered trademark of the Chartered Alternative Investment Analyst Association.

Investments in foreign securities, including depositary receipts, involve risks not associated with investing in U.S. securities. Foreign markets, particularly emerging markets, may be less liquid, more volatile and subject to less government supervision than domestic markets. Security values also may be negatively affected by changes in the exchange rates between the U.S. dollar and foreign currencies. Differences between U.S. and foreign legal, political and economic systems, regulatory regimes and market practices also may impact security values and it may take more time to clear and settle trades. Equity securities involve the risk that the value of the securities may fluctuate, sometimes widely fluctuate, in response to changes in a company's financial condition as well as general market, economic and political conditions and other factors. To the extent a Fund invests in Underlying ETFs, the Fund will be subject to the risks associated with the securities and other investments in which the Underlying ETF invest and the ability of the Fund to meet its investment objective will directly depend on the ability of the Underlying ETFs to meet their investment objective. In addition, the use of volatility management techniques by the Underlying ETF may limit the Fund's participation in market gains, particularly during periods when market values are increasing, but market volatility is high.

S&P 500 Index is an unmanaged index which contains 500 of the largest U.S. industrial, transportation, utility and financial companies deemed by Standard and Poor’s to be representative of the larger capitalization portion of the U.S. stock market.

Top 11 Holdings as of 06/30/2017 subject to change

Security Weight %
iShares Edge MSCI Min Vol Global ETF27.88%
PowerShares S&P International Developed Low Volatility Portfolio13.14%
iShares Edge MSCI Min Vol EAFE ETF12.84%
PowerShares S&P 500 High Dividend Low Volatility Portfolio7.18%
PowerShares S&P 500 Low Volatility Portfolio6.86%
iShares Edge MSCI Min Vol USA ETF6.81%
PowerShares S&P MidCap Low Volatility Portfolio6.63%
PowerShares S&P Emerging Markets Low Volatility Portfolio6.12%
iShares Edge MSCI Min Vol Emerging Markets ETF6.09%
PowerShares S&P SmallCap Low Volatility Portfolio3.23%
SPDR Russell 2000 Low Volatility ETF3.22%

Monthly Performance as of 08/31/2017

Total Returns
Fund1 month3 monthYTD1 yrSI1
Class I (NAV)0.56%2.58% - - 7.30%
MSCI ACWI (Net) Index20.38%3.66% - - 8.72%
MSCI ACWI Minimum Volatility (Net) Index30.86%2.19% - - 6.93%

Quarterly Performance as of 06/30/2017

Total Returns
Fund1 month3 monthYTD1 yrSI1
Class I (NAV)0.29%3.86% - - 4.90%
MSCI ACWI (Net) Index20.45%4.27% - - 5.36%
MSCI ACWI Minimum Volatility (Net) Index3-0.48%3.53% - - 4.14%

Expense Ratios as of 02/27/2017

Fund Gross Expense Ratio Net Expense Ratio4
Class I Shares4.14%0.65%

Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data please call (888) 310-0416.

One cannot invest directly in an index.

Returns for periods of less than one year are not annualized.

1Fund inception date of Febuary 27, 2017.

2MSCI ACWI (Net) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.

3MSCI ACWI Minimum Volatility (Net) Index aims to reflect the performance characteristics of a minimum variance strategy applied to large and mid cap equities across 45 Developed Markets (DM) and Emerging Markets (EM) countries. The index is calculated by optimizing the MSCI ACWI Index, its parent index, in USD for the lowest absolute risk (within a given set of constraints). Historically, the index has shown lower beta and volatility characteristics relative to the MSCI ACWI Index.

4Pursuant to a contract, 1290 Asset Managers® has agreed to make payments or waive its management, administrative and other fees to limit the expenses of the Fund through April 30, 2018 (unless the Board of Trustees consents to an earlier revision or termination of this arrangement)(“Expense Limitation Arrangement”) so that the annual operating expenses (including Acquired Fund Fees and Expenses) of the Fund (exclusive of taxes, interest, brokerage commissions, capitalized expenses (other than offering costs), 12b-1 fees, and extraordinary expenses) do not exceed an annual rate of average daily net assets of 0.65% for Class A shares, Class T shares, Class I shares, and Class R Shares of the Fund. The Expense Limitation Arrangement may be terminated by 1290 Asset Managers® at any time after April 30, 2018.

Distributions

The 1290 Low Volatility Global Equity Fund launched on February 27, 2017; therefore, distribution information is not available at this time.