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American Beacon APOLLO TOTAL RETURN Fund

Portfolio information as of September 12, 2018
  • Summary

Investment Objective

The Fund seeks to generate attractive risk-adjusted total returns using a multi-sector approach to fixed-income value investing.

VALUE-ORIENTED,
CONTRARIAN APPROACH

The Fund’s sub-advisor, Apollo Credit Management, LLC, became a registered investment advisor in 2011. The sub-advisor is a subsidiary of Apollo Global Management, LLC (with consolidated subsidiaries, “Apollo”), a leading global alternative investment manager founded in 1990. The sub-advisor is a contrarian, value-oriented investment manager in private equity, credit and real assets, with significant distressed investment expertise. The sub-advisor has a flexible mandate in many of its managed funds, which enables opportunistic investments across a company’s capital structure. The sub-advisor raises, invests and manages funds on behalf of pensions, endowments and sovereign wealth funds, as well as other institutional and individual investors.

Firm inception: 2011

Portfolio managers:

  • James Zelter is a portfolio manager of the Fund, chief investment officer of Apollo’s credit platform and co-president of Apollo Global Management; industry since 1985
  • Joseph Moroney is a portfolio manager of the Fund and a co-head of Apollo Global Liquid Credit; industry since 1993
  • John Zito is a portfolio manager of the Fund and a co-head of Apollo Global Liquid Credit; industry since 2003

INVESTMENT SELECTION

The sub-advisor will use a flexible value investment style and will allocate the Fund’s assets across four areas:

  • U.S. Corporate Credit (Bank Loans, Middle Market Loans, High Yield Securities and Liquid Opportunistic)
  • Structured Credit (CLO Liabilities)
  • Global Corporate Credit (European Loans, European High Yield, Global Financials and EM Corporates)
  • Real Estate Credit (Residential and Commercial)
  • Within each credit sector, the Fund is expected to benefit from Apollo’s deep individual asset class, industry and security selection expertise. The dynamic asset allocation process is designed to contribute to the Fund’s ability to be successful in as many environments as possible. In addition to the breadth of the Apollo credit platform, the Fund expects to benefit from Apollo’s ability to take advantage of differences in relative value between asset classes and future volatility in the marketplace. The investment process combines qualitative and quantitative factors and relies on the substantial cumulative judgment of, and input from, the entire Apollo credit portfolio management team.

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, RMBS, CMBS and derivatives entails interest rate, liquidity, market and credit risks. Investing in foreign and emerging market securities may involve heightened risk due to currency fluctuations and economic and political risks. The Fund invests in real estate related securities, which involve additional risks such as limited liquidity and greater volatility.  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.

American Beacon is a registered service mark of American Beacon Advisors, Inc. American Beacon Funds and American Beacon Apollo Total Return Fund are service marks of American Beacon Advisors, Inc.