American Beacon Advisors (American Beacon), a provider of investment advisory services to institutional and retail markets, has launched the American Beacon AHL TargetRisk Fund, a new mutual fund based on the existing Man AHL TargetRisk multi-asset program.
The fund’s shares are available as Institutional Class (AHTIX), Investor Class (AHTPX) and Y Class (AHTYX).
The American Beacon AHL TargetRisk Fund aims to provide capital growth with a balanced, long-only approach, active risk management, and diversification across a broad range of markets. Its proprietary quantitative approach seeks to provide an excess return with a stable level of volatility regardless of market conditions. The Fund allocates its assets across equities, bonds, interest rates, corporate credit, and commodities, investing primarily in derivatives vehicles. The Fund’s sub-advisor is the London-based AHL Partners (Man AHL), a wholly owned subsidiary of Man Group, a global active investment management firm and one of the largest publicly listed global hedge fund providers.
“We’re thrilled to partner again with Man AHL to bring this new Fund to market,” says Gene Needles, American Beacon’s chairman and chief executive officer. “We believe the launch of this strategy as a US ‘40 Act vehicle is timely. By design, this fund is adaptive and capable of dynamically manoeuvering through various market environments, potentially making it an attractive solution for investors seeking to diversify their portfolios as the US bull market ages.”
Man AHL brings more than 30 years of experience in systematic trading and employs multiple techniques that aim to mitigate risk and maintain a steady level of volatility, potentially creating a more stable return stream. The TargetRisk strategy applies Man AHL’s three decades of experience in alternatives to long-only investment, and dynamic capital protection techniques aim to reduce drawdowns by adapting exposures using a quantitative approach.
“Since 2014, we’ve found American Beacon to be an ideal strategic partner for us and are pleased to be collaborating with them again,” says Matthew Sargaison, co-chief executive officer and chief investment officer at Man AHL. “Their understanding of the industry and broad distribution network will allow more investors to access and potentially benefit from the strategy, at a time when many are concerned about market volatility.”
The American Beacon AHL TargetRisk Fund is the second American Beacon fund to be sub-advised by Man AHL, which also sub-advises the American Beacon AHL Managed Futures Strategy Fund (Institutional Class, AHLIX; Investor Class, AHLPX). American Beacon and Man Group also partnered to launch the American Beacon GLG Total Return Fund (Institutional Class, GLGIX; Investor Class, GLGPX) in May 2016.