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
- Ryan Kohan, Co-Portfolio Manager,
industry since 2007
- 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
- Investing in “off‐the-run” credits that are not followed by larger managers (e.g., smaller loan sizes)
- The liquidity profile allows the sub-advisor to opportunistically invest in asset classes that either don’t fit the investment profile or present a liquidity mismatch
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.
Sector Weightings (%)
Excludes Cash. May not equal 100% due to rounding.
Top 10 Holdings (%)
| Total Number of Issuers: |
263 |
MATURITY DISTRIBUTION (%)
Excludes cash. May not equal 100% due to rounding.
Duration is a measure of price sensitivity relative to changes in interest rates.
S&P credit ratings for long-term obligations (or issuers thereof) are AAA, AA, A, BBB, BB, B, CCC,
CC, C and D in decreasing order. For example, obligations rated AAA are judged to be of the
highest quality, BBB to be of medium grade, CCC are judged to be speculative and obligations rated
D are in default. Obligations rated in one of the four highest categories are considered to be
investment grade while all other ratings are considered non-investment grade.
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American Beacon Funds and American Beacon Sound Point Floating Rate Income Fund
are service marks of American Beacon Advisors, Inc.