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American Beacon Sound Point Enhanced Income Fund

Portfolio information as of September 30, 2018
  • Summary
  • Performance
  • Overview

Investment Objective

The Fund seeks to provide high current income and, secondarily, capital appreciation.

expertise in corporate
credit strategies

Sound Point Capital Management, LP, the Fund’s sub-advisor, is a credit-oriented alternative asset manager established by Stephen Ketchum in 2008. Mr. Ketchum has more than 25 years of experience in credit structuring, advisory and investment management, and a successful track record of building and managing teams. Sound Point’s primary investment objective is to preserve capital in all market conditions and to generate attractive rates of return with low volatility.

Firm inception: 2008

Portfolio managers:

  • Stephen Ketchum,
    Managing Partner and Principal Owner,
    industry since 1991
  • Rick Richert‌, Portfolio Manager,
    industry since 1994
  • Garrick Stannard, Portfolio Manager and Senior Credit Analyst; industry since 2000

INVESTMENT Approach

  • Seeks to provide significant income above daily liquid options, coupled with capital appreciation.
  • Employs a fundamental, bottom-up approach to investing opportunistically in the credit markets.
  • Focuses on corporate credit, but could expand to other lending arenas.

differentiation

  • The Fund may invest in “off‐the-run” credits that are not followed by larger managers (e.g., smaller loan sizes).
  • The Fund’s structure allows the sub-advisor
    to opportunistically invest across a variety of
    credit-related instruments generally considered
    less liquid than those available to typical open-end funds and exchange-traded funds.

important

  • An investment in the Fund may not be appropriate for all investors and is not designed to be a complete investment program. In addition, because of the risk associated with the Fund’s ability to invest in obligations and related instruments of varying levels of seniority, including subordinated debt obligations, high yield securities, securities of distressed and defaulted issuers, delayed funding loans, illiquid securities, unsecured obligations, collateralized loan obligations, credit-linked notes, and derivatives and the Fund’s ability to use leverage, an investment in the Fund should be considered speculative and involving a high degree of risk. Be aware that investing in the Fund may result in a loss of some or all of the amount invested.
  • Investment in the Fund should be avoided when an investor has a short-term investing horizon and/or cannot bear the loss of some or all of his or her investment. An investment in the Fund is not suitable for investors who need certainty about their ability to access all of the money they invest in the short term.


The Fund is a non-diversified, closed-end management investment company structured as an “interval fund” and designed primarily for long-term investors. The Fund’s use of fixed-income and variable-rate securities, such as loans and related instruments of varying levels of seniority, corporate debt and notes, high yield securities, CLOs, CLNs and derivatives entails interest rate, liquidity, market and credit risks. The Fund’s ability to borrow for investment purposes and otherwise use leverage can magnify these risks. There is no secondary market for the Fund’s shares, and the Fund expects that no secondary market will develop. Even though the Fund will make quarterly repurchase offers for its outstanding shares (currently expected to be for 5% per quarter), investors should consider shares of the Fund to be an illiquid investment. There is no guarantee that investors will be able to sell their shares at any given time or in the quantity desired. 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.

Sound Point Enhanced Income Fund Section 16 Link

American Beacon is a registered service mark of American Beacon Advisors, Inc. American Beacon Sound Point Enhanced Income Fund is a service mark of American Beacon Advisors, Inc.