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American Beacon FEAC Floating Rate Income FUND

Portfolio information as of March 31, 2024
  • Summary
  • Performance
  • Overview

Investment Objective

The Fund's investment objective is to provide a high level of current income consistent with strong, risk-adjusted returns.

expertise in corporate
credit strategies

First Eagle Alternative Credit is an alternative credit investment manager for both direct lending and broadly syndicated investments. The FEAC Tradable Credit team takes a value-oriented approach to credit characterized by the deep experience and continuity of the Investment Committee, a low analyst-to-credit coverage ratio, and a dynamic portfolio management and trading style. FEAC is a wholly owned subsidiary of First Eagle Investments, an independent, privately owned investment management firm headquartered in New York.

Firm inception: 2007

Portfolio Managers:

  • James Fellows; industry since 1987
  • Robert Hickey; industry since 1990
  • Steve Krull; industry since 1998
  • Brian Murphy; industry since 1992

strategy and objectives

  • The Fund invests primarily in floating-rate instruments of non-investment grade U.S. corporate issuers, broadly diversified across industry and sector.
  • The sub-advisor uses a value-oriented, research-intensive approach to credit investing that is both bottom-up and top-down with the goal of minimizing credit and default risks.
  • The sub-advisor believes alpha generation is driven by active management and being highly selective and nimble in how it invests.

Total Fund Assets

$174.2 Million  

Sub-Advisor (%)

First Eagle Alternative Credit, LLC 100.0

Investments in high-yield securities (commonly referred to as "junk bonds"), including loans, CLOs, restricted securities and floating-rate securities, are subject to greater levels of credit, interest rate, market and liquidity risks than investment-grade securities. Interest rate risk is the risk that debt securities will decrease in value with increases in market interest rates. Credit risk is the risk that a debt issuer will fail to make timely payment of interest or principal; the decline in an issuer's credit rating can cause the price of its debt securities to go down. In addition, loans are subject to the risk that the Fund may not be able to obtain the collateral securing the loan in a timely manner, and the value of the collateral may not cover the amount owed on the loan. Geopolitical and other events have led to market disruptions causing adverse changes in the value of investments broadly. Changes in value may be temporary or may last for extended periods. The Fund's incorporation of environmental, social and/ or governance (ESG) considerations in its investment strategy may cause it to underperform funds that do not incorporate these considerations. 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 FEAC Floating Rate Income Fund are service marks of American Beacon Advisors, Inc.