IRVING, Texas--(BUSINESS WIRE)--American Beacon Advisors, Inc. (“American Beacon”), a leading provider of investment advisory services to institutional and retail markets, today announced the launch of the American Beacon Sound Point Enhanced Income Fund. The Fund is a newly organized and non-diversified interval fund which offers Y-Class shares beginning today under the ticker symbol SPEYX.
Interval funds are continuously offered closed-end funds that periodically offer to repurchase their shares from shareholders. Unlike open-end mutual funds, interval funds do not provide daily liquidity but instead offer investors an ability to redeem up to a certain percentage of the fund at regular, periodic intervals. This type of structure, which is becoming increasingly popular, gives managers the flexibility to invest in assets or execute investment strategies that are less liquid and better suited for a longer holding period – strategies generally only available to institutional investors.
“We’re delighted to begin offering this fund, which brings additional value and opportunity for clients and complements our existing product lineup,” said Gene Needles, American Beacon’s Chairman and Chief Executive Officer. “Sound Point’s nimble and fundamental approach to investing makes them an ideal partner, and we look forward to working together to create the best client experience possible. We believe that partnering with an investment manager like Sound Point should make this new fund a compelling offering for our clients.”
The Fund’s sub-advisor, New-York based Sound Point Capital, focuses its strategy on preserving capital in all market conditions and generating attractive rates of return with low volatility. With this new Fund, Sound Point employs a fundamental, bottom-up approach to investing opportunistically in the credit markets. The exact mix of assets in which it invests will be flexible and responsive to market conditions; however, Sound Point will focus primarily on a variety of credit-related instruments, including corporate obligations and securitized and structured issues of varying maturities, which includes fixed and floating-rate securities and bank loans. Stephen Ketchum, Founder and Managing Partner of Sound Point, commented, “We look forward to building on our successful partnership with American Beacon to offer another differentiated institutional credit strategy to retail investors.”
About American Beacon Advisors
An investment affiliate of Resolute Investment Managers, Inc., American Beacon Advisors, Inc. is a leading provider of investment advisory services to institutional and retail markets. Established in 1986, American Beacon Advisors serves defined benefit plans, defined contribution plans, foundations, endowments, corporations and other institutional investors, as well as retail clients. The firm also provides corporate cash management and fixed-income separate account management. American Beacon Advisors manages the American Beacon Funds, a series of competitively priced mutual funds. The Funds employ a “manager of managers” investment style and currently include international and domestic equity, fixed-income and money market funds. As of March 31, 2018, American Beacon Advisors had $59.0 billion in assets under management; the affiliated companies of Resolute Investment Managers had $67.9 billion in assets under management. For more information, visit www.americanbeaconadvisors.com.
About Sound Point Capital Management, LP
Sound Point is an alternative asset management firm founded in 2008, which has more than $16.6 billion of assets under management as of March 31, 2018. As an American Beacon sub-advisor, Sound Point Capital has managed the American Beacon Sound Point Floating Rate Income fund since 2015. Sound Point has particular expertise in credit strategies and manages assets on behalf of institutions, pensions, foundations, insurance companies, wealth management firms, family offices and high net worth individuals. Sound Point’s strategies span the spectrum of liquid and illiquid credit alternatives and include funds and managed accounts focused on leveraged loans, CLOs, long/short credit opportunities and distressed credit. For more information, please refer to the Sound Point website at www.soundpointcap.com.
You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus contains this and additional information regarding the Fund. To obtain a prospectus, call 833.262.3226 or visit americanbeaconfunds.com. The prospectus should be read carefully before investing.
Important Information: All investing involves risk including the possible loss of principal. The Fund is a non-diversified, closed-end fund 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.
Interval funds are legally classified as closed-end funds; however, they are very different from traditional closed-end funds. In addition, investors should carefully evaluate the costs of interval funds because they can have higher expenses than other closed-end funds and mutual funds. 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.
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.
The American Beacon Funds are distributed by Resolute Investment Distributors, Inc.