IRVING, Texas--(BUSINESS WIRE)--American Beacon Advisors, Inc. (“American Beacon”), a leading provider of investment advisory services to institutional and retail markets, announced today the launch of the American Beacon SSI Alternative Income Fund (Institutional: SSIJX; Investor: PSCAX; Y: PSCIX). The Fund’s shares became available on May 20, 2019.
Since its inception in 2012, the Fund has primarily used a convertible arbitrage strategy to provide investors with a market-neutral, fixed-income alternative. The Fund generates return through four unique sources: (1) income from convertible bonds and convertible preferred stocks; (2) the interest rebate on underlying equity short positions; (3) opportunistically adjusting its equity hedges; and (4) identifying undervalued securities. The Fund seeks to have low volatility and almost no beta to equity markets. It also maintains low duration and may serve as a defensive complement to a fixed-income allocation, particularly during rising interest-rate environments. The Fund’s portfolio managers aim to generate alpha by identifying mispricing and arbitrage opportunities in the convertible markets while using hedges to help mitigate risk. The Fund offers investors exposure to a niche asset class and a strategy typically only accessible to large institutional investors.
American Beacon will serve as the manager of the Fund, while SSI Investment Management (“SSI”) will serve as the sub-advisor. Founded in 1973, SSI is an institutional asset manager specializing in risk-mitigation strategies and managing $1.9 billion for institutional and high-net-worth investors. In January 2019, American Beacon’s parent company, Resolute Investment Managers, announced an agreement to acquire a majority interest in SSI.
“We’re pleased to be able to offer this Fund to our clients as a natural extension of our partnership with SSI,” Gene Needles, chairman and CEO of American Beacon and Resolute Investment Managers, said. “We deeply respect SSI’s decades-long record of delivering competitive and risk-adjusted returns, and we believe our clients can benefit greatly from the team’s expertise.”
“We are thrilled to have American Beacon’s outstanding reputation and support bolstering this Fund, especially at a time when many investors are concerned about rising interest rates and seeking alternatives to traditional fixed-income and equity investments,” John Gottfurcht, SSI’s founder and president, said.
George Douglas, chief investment officer at SSI, added: “Our entire team is excited about, and is looking forward to, our partnership with American Beacon and Resolute, and benefiting from the synergies and shared values between our two firms.”
The American Beacon SSI Alternative Income Fund is the first American Beacon fund sub-advised by SSI. As of March 31, 2019, the Fund had $280 million in total assets.
About American Beacon Advisors
An investment affiliate of Resolute Investment Managers, Inc., American Beacon Advisors, Inc. is a leading provider of investment advisory services to institutional and retail markets. Established in 1986, American Beacon Advisors serves defined benefit plans, defined contribution plans, foundations, endowments, corporations and other institutional investors, as well as retail clients. The firm also provides corporate cash management and fixed-income separate account management. American Beacon Advisors manages the American Beacon Funds, a series of competitively priced mutual funds. The Funds employ a “manager of managers” investment style and currently include international- and domestic-equity, fixed-income, and money-market funds. As of March 31, 2019, American Beacon Advisors had $57.9 billion in assets under management; the affiliated companies of Resolute Investment Managers had $70.0 billion in assets under management. For more information, visit www.americanbeaconadvisors.com.
About SSI Investment Management
Founded in 1973, SSI Investment Management is a boutique, institutional asset management firm that seeks to add value by delivering competitive risk-adjusted returns for its clients, while focusing on safety, consistency and preservation of capital. SSI offers investment solutions using a mix of convertible and equity strategies that may appeal to investors seeking growth while limiting downside risk, especially during volatile and rapidly changing market conditions. The firm applies quantitative disciplines and fundamental research in its management of alternative and traditional portfolios for institutional and high net worth investors. As of March 31, 2019, SSI Investment Management had $1.9 billion in assets under management. For more information, visit www.ssi-invest.com.
You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and additional information regarding the Fund. To obtain a prospectus or summary prospectus, call 800.967.9009 or visit americanbeaconfunds.com. The prospectus and summary prospectus should be read carefully before investing.
Important Information: The use of fixed-income securities, including convertible securities, entails interest rate and credit risks. In addition, the value of a convertible security could fluctuate based on the value of the underlying stock. Investing in derivative instruments involves liquidity, credit, interest rate and market risks. The Fund’s investments in high-yield securities, including restricted securities and floating rate securities, are subject to greater levels of credit, interest rate, market and liquidity risks than investment-grade securities. Short sales involve special risks, including greater reliance on the sub-advisor’s ability to accurately anticipate the future value of a security or instrument; the Fund’s losses are potentially unlimited in a short sale. Investing in foreign and emerging market securities may involve heightened risk due to currency fluctuations and economic and political risks. Investing in small- or mid-capitalization stocks may involve greater volatility and lower liquidity than larger company stocks.
American Beacon is a registered service mark of American Beacon Advisors, Inc. American Beacon Funds and American Beacon SSI Alternative Income Fund are service marks of American Beacon Advisors, Inc.
The American Beacon Funds are distributed by Resolute Investment Distributors, Inc.
