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American Beacon SSI ALTERNATIVE INCOME FUND

Portfolio information as of June 30, 2019
  • Summary
  • Performance
  • Overview

Investment Objective

The Fund’s investment objectives are to seek income and, secondarily, absolute returns.

A DEFENSIVE COMPLEMENT TO A FIXED-INCOME ALLOCATION

SSI Investment Management, a boutique, institutional asset management firm founded in 1973, seeks to add value by delivering competitive, risk-adjusted returns for its clients while focusing on safety, consistency and preservation of capital. SSI offers investment solutions using a mix of convertible and equity strategies that may appeal to investors seeking growth while limiting downside risk, especially during volatile and rapidly changing market conditions. The firm applies quantitative disciplines and fundamental research in its management of alternative and traditional portfolios for institutional and high net worth investors.

Firm inception: 1973

Portfolio Managers:

  • George M. Douglas, industry since 1977
  • Alexander W. Volz, industry since 1996
  • Dagney M. Hollander, industry since 2001

INCOME AND RISK-MANAGED CAPITAL APPRECIATION

  • Multiple sources of return
    • Interest or dividend income on long, convertible positions (either bond or preferred)
    • Interest income monthly on short positions
    • Alpha generated by sub-advisor’s skill in identifying mispricing and arbitrage opportunities in capital markets
    • Monetizing volatility by hedging the embedded option in the convertible bond

Investment Strategy

  • Market-Neutral: An absolute-return strategy designed to capture returns from security selection rather than broad market moves
  • Risk Management: Mitigating risk without the use of leverage through position sizing and hedge ratios
  • Low Interest-Rate Sensitivity: The relatively short duration of convertibles, combined with a credit rebate linked to short-term rates, limits the effect of interest-rate moves

Total Fund Assets

$229.1 Million

Sub-Advisor (%)

SSI Investment Management 100%

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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 derivative instruments involves liquidity, credit, interest rate and market risks. The Fund’s investments in high-yield securities, including restricted securities and floating rate securities, are subject to greater levels of credit, interest rate, market and liquidity risks than investment-grade securities. 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. Investing in foreign and emerging market securities may involve heightened risk due to currency fluctuations and economic and political risks. Investing in small- or midcapitalization stocks may involve greater volatility and lower liquidity than larger company stocks. 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 SSI Alternative Income Fund are service marks of American Beacon Advisors, Inc.