IRVING, Texas--(BUSINESS WIRE)--American Beacon Advisors, Inc. (“American Beacon”), an experienced provider of investment advisory services to institutional and retail markets, announced today the launch of its first exchange-traded fund – the American Beacon AHL Trend ETF (“the ETF”) (Ticker: AHLT) – in addition to its latest mutual fund offering, the American Beacon AHL Multi-Alternatives Fund (“the Fund”) (R6 Class: AHMRX; Y Class: AHMYX; A Class: AHMAX; C Class: AHMCX).
London-based AHL Partners LLP (“Man AHL”), a part of the global active investment manager, Man Group plc, will serve as sub-advisor for both funds. Shares of the ETF and mutual fund became available on August 31 and August 17, respectively.
The American Beacon AHL Trend ETF, which also marks Man AHL’s entrance into the ETF market, will deploy an active, quantitative and systematic trading strategy. The strategy is designed to proactively manage risk while attempting to capitalize on price trends throughout more than 20 of the most liquid global markets across four major asset classes – stocks, bonds, commodities and currencies – by using derivative instruments. In keeping with Man AHL’s investment philosophy and building on strategies created over the firm’s 35-year-plus history, the ETF will use quantitative models in an attempt to identify and profit from market trends, while potentially generating a diversified and risk-managed return stream for clients.
The American Beacon AHL Multi-Alternatives Fund combines Man AHL’s “Managed Futures” and “TargetRisk” strategies, seeking to provide investors with a comprehensive and efficient alternatives solution, which offers diversification benefits and drawdown protections to mitigate the peak-to-trough decline for an investment. The Fund will invest primarily in derivatives, including futures contracts, foreign currency forward contracts and swaps.
“We’re thrilled to officially enter the ETF market, as our clients have expressed a strong desire for this alternative investment vehicle,” Jeff Ringdahl, president and CEO of American Beacon and its parent company, Resolute Investment Managers, Inc. (“Resolute”), said. “Man AHL has solidified itself as a pioneer in systematic trading over the last three decades and, more importantly, has been a trusted partner of ours for nearly 10 years. Launching these two products is a natural step to build on our past achievements, and we look forward to offering our clients and investors a unique complement to traditional portfolios.”
Russell Korgaonkar, chief investment officer of Man AHL, added, “As we approach a decade of partnership with American Beacon, we are thrilled to further build on that success by increasing access to liquid alternative strategies with the launch of two additional funds with American Beacon. We believe that a wide range of investors should have access to the diversification and crisis alpha embedded within trend-following and multi-alternative strategies. Demand to participate in more liquid vehicles is rapidly growing and ETFs are further complementing mutual funds as a critical component of the retail investor toolkit.”
While the launch of the ETF serves as American Beacon’s debut in the ETF space, the firm is evaluating future opportunities to partner with new and existing sub-advisors to provide additional ETFs that complement its evolving mutual fund lineup.
“Looking forward, we will be multi-dimensional in our approach,” Becky Harris, senior vice president for Product Management & Corporate Development at American Beacon and Resolute, said. “We will bring differentiated products to the marketplace that offer clients efficient methods of exposure. Most importantly, we will continue to meet investors where they are by delivering unique investment styles and asset classes in the vehicles that best suit their modern portfolios.”
Greg Stumm, CFA®, CAIA®, head of distribution at American Beacon and Resolute, added, “We are excited to announce these new offerings and expand our partnership with Man AHL. Over the last nine-plus years of working together, we’ve focused on delivering a better client experience in the liquid alternatives space and we will strive to continue doing the same in the future.”
For more information about the American Beacon AHL Trend ETF or the American Beacon AHL Multi-Alternatives Fund, visit www.americanbeaconfunds.com.
About American Beacon Advisors
American Beacon Advisors, Inc., an investment affiliate of Resolute Investment Managers, Inc., is an experienced 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 June 30, 2023, American Beacon Advisors had more than $63.0 billion in assets under management. For more information, visit www.americanbeaconadvisors.com.
About Man Group
Man Group is a global, technology-empowered active investment management firm focused on delivering alpha and portfolio solutions for clients. Headquartered in London, the firm manages $151.7 billion, as of June 30, 2023, and operates across multiple offices globally. Man Group invests across a diverse range of strategies and asset classes, with a mix of long only and alternative strategies run on a discretionary and quantitative basis, across liquid and private markets. The firm’s investment teams work within a single operating platform, enabling them to invest with a high degree of empowerment while benefiting from the collaboration, strength and resources of the entire firm. Man Group’s platform is underpinned by advanced technology, supporting their investment teams at every stage in their process, including alpha generation, portfolio management, trade execution and risk management. Further information can be found at www.man.com. All investment management and advisory services are offered through the investment “engines” of Man AHL, Man Numeric, Man GLG, Man Solutions / FRM and Man GPM.
Disclosures
You should consider the investment objectives, risks, charges and expenses of the ETF and the Fund carefully before investing. The prospectus and summary prospectus contain this and additional information regarding the ETF and the Fund. To obtain a prospectus or summary prospectus for the American Beacon AHL Trend ETF, please contact your financial advisor, call 833.471.3562 or visit www.americanbeaconfunds.com. To obtain a prospectus or summary prospectus for the American Beacon AHL Multi-Alternatives Fund, please contact your financial advisor, call 800.967.9009 or visit www.americanbeaconfunds.com. The prospectus and summary prospectus should be read carefully before investing.
All investing involves risk, including possible loss of principal.
American Beacon AHL Trend ETF: The Fund is actively managed, and there can be no assurances that its investment objectives will be met. Derivative instruments, including futures contracts and foreign currency forward contracts, may be highly sensitive to market factors, have less liquidity than other investments and involve the potential for losses to exceed the amount invested. Futures contracts may not produce the desired results due to lack of correlation with the underlying assets. The Fund’s ability to invest long and short in a trend-following strategy does not assure that the Fund can avoid losses. Diversification does not assure a profit nor protect against loss. Investing in foreign markets may involve heightened risk due to currency fluctuations and economic and political risks. Quantitative models may not perform as expected and may result in losses for the Fund. The Fund may distribute higher capital gains than other ETFs. Regulatory changes may impair the Fund’s ability to qualify for federal income tax treatment as a regulated investment company, which could result in the Fund and shareholders incurring significant income tax expense. Because the Fund may invest in fewer issuers than a more diversified portfolio, the fluctuating value of a single holding may have a greater effect on the value of the Fund. Please see the prospectus for a complete discussion of the Fund’s risks.
The ETF is new and has a limited operating history. Any reference to the ETF’s liquid exposure refers to the ETF’s shares, not the ETF’s holdings.
Foreside Financial Services, LLC is the distributor of the American Beacon AHL Trend ETF and is not affiliated with American Beacon or its sub-advisors.
American Beacon AHL Multi-Alternatives Fund: Derivative instruments may be highly sensitive to market factors, have less liquidity than other investments and involve the potential for losses to exceed the amount invested. Diversification does not assure a profit nor protect against loss. Quantitative models may not perform as expected and may result in losses for the Fund. Investing in foreign and emerging markets may involve heightened risk due to currency fluctuations and economic and political risks. Regulatory changes may impair the Fund’s ability to qualify for federal income tax treatment as a regulated investment company, which could result in the Fund and shareholders incurring significant income tax expense. The Fund may have high portfolio turnover risk, which could increase the Fund’s transaction costs and possibly have a negative impact on performance. Because the Fund may invest in fewer issuers than a more diversified portfolio, the fluctuating value of a single holding may have a greater effect on the value of the Fund. Please see the prospectus for a complete discussion of the Fund’s risks. There can be no assurances that the investment objectives of this Fund will be met.
Resolute Investment Distributors, Inc. is the distributor of the American Beacon AHL Multi-Alternatives Fund.
Definitions
Correlation: Correlation is a measure of how two assets perform in relation to each other. Assets that are strongly correlated (with a measure near 1) tend to move together, while uncorrelated assets (with a measure near -1) tend to move in opposite directions.
Drawdown: The peak-to-trough decline for an investment.
Trend-Following Strategy: A systematic, rules-based investment strategy that can generally go long or short futures contracts across equities, fixed income, commodities, and foreign-exchange markets. The value of a long position in an asset moves in the same direction as its market price. The value of a short position in an asset moves in the opposite direction as its market price.
American Beacon is a registered service mark of American Beacon Advisors, Inc. American Beacon AHL Trend ETF and American Beacon AHL Multi-Alternatives Fund are service marks of American Beacon Advisors, Inc.
The Chartered Financial Analyst® (“CFA®”) designation is a globally recognized mark of distinction that attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management, research analysis and professional integrity.
The Chartered Alternative Investment Analyst (“CAIA®”) designation is a mark of the Chartered Alternative Investment Analyst Association®. The mark certifies that individuals have successfully completed examinations and other specified certification standards.
