This Fund provides investors with an opportunity to mitigate downside risk though Ionic’s arbitrage investment strategies.
Irving, Texas (PRWEB) July 20, 2015
American Beacon Advisors, Inc. (“American Beacon”), an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon Ionic Strategic Arbitrage Fund (Institutional Class: IONIX, A Class: IONAX) today. The Fund became effective June 30.
The American Beacon Ionic Strategic Arbitrage Fund seeks to achieve its investment objective by implementing a strategic arbitrage strategy comprised of: convertible arbitrage, credit/rates relative value arbitrage, equity arbitrage and volatility arbitrage. By employing a “market-neutral” strategy, the Fund’s returns are not intended to be closely correlated to the stock market as a whole, interest rates, or a particular market index.
Arbitrage is an active trading strategy that seeks to identify price inefficiencies between related instruments. It involves the simultaneous purchase and sale of related assets with the objective of isolating and/or capturing mispricing between the two instruments.
“We continue to take a calculated approach to expanding our product line and apply the proper due diligence in selecting sub-advisors, particularly in the liquid alts space,” Gene L. Needles, Jr., President and Chief Executive Officer of American Beacon said. “This Fund provides investors with an opportunity to mitigate downside risk though Ionic’s arbitrage investment strategies.”
The Fund’s sub-advisor is Ionic Capital Management ® LLC (“Ionic”). Founded in 2006, Ionic is based in New York with an office in San Francisco. The $2.7 billion alternative asset management firm focuses on relative-value arbitrage and event-driven investment strategies. Within the relative-value arbitrage strategies, Ionic strives to generate negatively correlated returns and outperformance in uncertain markets utilizing a variety of asset classes. Within the event-driven strategy, Ionic focuses on both announced and anticipated hard-catalyst opportunities, seeking to drive returns from unique, company-specific events.
“After thoughtfully constructing a relative value portfolio across a broad range of asset classes, we are thrilled to partner with American Beacon to expand our footprint in the liquid alternatives space,” Bart Baum, Principal and Chief Investment Officer of Ionic Capital said.
About American Beacon Advisors
Established in 1986, American Beacon is an experienced provider of investment advisory services to institutional and retail markets. 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 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, 2015, American Beacon Advisors had $62.9 billion in assets under management. For more information, go to http://www.americanbeaconfunds.com or follow on Twitter via @AmBeacon.
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, please contact your financial advisor, call (800) 967-9009 or visit americanbeaconfunds.com. The prospectus and summary prospectus should be read carefully before investing.
All investing involves risk including the possible loss of principal. The Fund’s strategy of investing in a variety of arbitrage strategies entails certain risks including that the sub-advisor’s judgments about allocation between such strategies, as well as individual arbitrage opportunities, may not perform to expectations, resulting in the Fund’s underperformance or even losses versus other similar funds. Arbitrage is the simultaneous purchase and sale of an asset or assets to take advantage of a perceived pricing anomaly. 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. The Fund may have high portfolio turnover, which could increase the Fund’s transaction costs and possibly have a negative impact on performance. Small- or mid-capitalization stocks may involve greater volatility and lower liquidity than larger company stocks. 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 foreign securities may involve heightened risk due to currency fluctuations and economic and political risks. Investing in derivative instruments involves liquidity, credit, interest rate and market risks. 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.
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.
Distributed by Foreside Fund Services, LLC.
American Beacon is a registered service mark of American Beacon Advisors, Inc.
American Beacon Funds and American Beacon Ionic Strategic Arbitrage Fund are service marks of American Beacon Advisors, Inc.