American Beacon Launching Two New Liquid Alt Funds

Apr 8 2015 | 4:42pm ET

American Beacon is launching two new liquid alternative mutual funds. 

The Fort Worth, Texas-based company is in the planning stages for the American Beacon Ionic Strategic Arbitrage Fund and the American Beacon Grosvenor Long/Short Fund. 

These vehicles would be the firm’s second and third liquid alternative funds, respectively, following last year’s launch of the American Beacon AHL Managed Futures Strategy Fund. The first fund booked a 16.11% return for the six months ending March 31, and has accumulated $51 million in AUM, according to media reports. 

The company’s Ionic Strategic Arbitrage Fund will pursue capital appreciation with reduced volatility and low equity and interest rate correlations. The fund will be sub-advised by Ionic Capital Management, which will implement a market-neutral arbitrage strategy consisting of convertible arbitrage, credit/rates relative value arbitrage, equity arbitrage, and volatility arbitrage. 

The subadvisor’s Ionic Absolute Return Fund LLC, a private fund formed in August 2013, will be converted into the mutual fund, according to securities filings. Shares of the new fund will be available in five classes with net-expense ratios ranging from 1.95% to 1.55%, with management fees of 1.05%. American Beacon is targeting after June 1 for launch.

Meanwhile, the company’s new American Beacon Grosvenor Long/Short Fund will be a long/short equity fund sub-advised by Grosvenor Capital Management. In turn, Grosvenor will allocate the assets of the fund to multiple underlying managers. The fund’s objective is to provide long-term capital appreciation for its investors. 

The fund will combine traditional long/short equity with an event-driven strategy that will pursue spin-offs, restructurings and other event related transactions. Merger arbitrage will also be included, according to the reports.  

As with the Ionic fund, American Beacon will offer five classes of the Grosvenor Long/Short Fund, ranging in net expense ratios from 3.26% to 2.21%, and management fees of 1.55%. The new fund will not launch before June 16, according to the company.

In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...


CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...