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American Beacon AHL TARGETRISK Fund

Portfolio information as of March 31, 2019
  • Summary
  • Performance
  • Overview

Investment Objective

The Fund's investment objective is long-term capital growth.

ONE OF THE WORLD'S LARGEST INDEPENDENT ALTERNATIVE
INVESTMENT MANAGERS

Founded in London in 1783, Man Group (“Man”), AHL’s parent company, is one of the largest publicly listed global hedge fund providers in the world. Worldwide, Man boasts more than 300 dedicated investment professionals. AHL’s assets under management include a large institutional capital base, including endowments, insurance companies, pension funds and sovereign wealth funds.

Firm inception: 1987

Portfolio Managers:

  • Matthew Sargaison; industry since 1992
  • Russell Korgaonkar; industry since 2001

INVESTMENT STRATEGIES

  • The Fund allocates assets across equities, bonds (including inflation index-linked bonds), interest rates, corporate credit and commodities.
  • The Fund’s proprietary quantitative model is designed to provide a stable level of volatility regardless of market conditions, as well as additional risk controls to limit the downside risk, offering the potential for stronger risk-adjusted returns. The Fund uses “volatility scaling,” a systematic technique to help maintain the stable level of volatility, which may help create a steady return stream over time. When a market is turbulent and returns are volatile, the Fund reduces exposure. Conversely, it increases exposure when a market is calm.
  • The Fund uses “volatility switching,” a mechanism that dynamically reacts to spikes in volatility and helps decrease risk during periods of heightened volatility.
  • The Fund uses “momentum overlay,” which identifies market downtrends through past price movement. In these instances, the Fund scales positions depending upon trend strength, thereby reducing risk in falling markets.
  • The Fund uses an “intraday correlation monitor” to identify dangerous environments when fixed-income assets no longer act as a hedge to equities and other asset classes. In such instances, it helps reduce risk across the portfolio.

Total Fund Assets

$28.0 Million  

Sub-Advisor (%)

AHL Partners LLP 100.0

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Investing in derivative instruments involves liquidity, credit, interest rate and market risks. The use of quantitative models may lead to high levels of trading and concentration among certain investments, resulting in higher trading costs and return volatility. The Fund’s investments in high-yield or junk-rated securities are subject to greater levels of credit, interest rate, market and liquidity risks than investment-grade securities. In a period of sustained deflation, inflation index-linked securities may not pay any income and may suffer a loss. Investing in foreign and emerging market securities 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.

For a prospectus containing more information, including expenses, click here. Read it carefully before you invest or send money. Past performance is no guarantee of future results.

American Beacon is a registered service mark of American Beacon Advisors, Inc. American Beacon Funds and American Beacon AHL TargetRisk Fund are service marks of American Beacon Advisors, Inc.