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.
American Beacon Advisors
220 East Las Colinas Blvd., Suite 1200
Irving, Texas 75039