American Beacon AHL TargetRisk Fund
Fund
AHTAX
Price as of:
$10.08
+ $0.11
+ 1.10%
Primary Theme
fund company
Name
Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
Vitals
YTD Return
5.2%
1 yr return
-8.2%
3 Yr Avg Return
-5.0%
5 Yr Avg Return
N/A
Net Assets
$804 M
Holdings in Top 10
93.0%
52 WEEK LOW AND HIGH
$10.0
$9.57
$11.02
Expenses
OPERATING FEES
Expense Ratio 1.30%
SALES FEES
Front Load 5.75%
Deferred Load N/A
TRADING FEES
Turnover 195.00%
Redemption Fee N/A
Min Investment
Standard (Taxable)
$2,500
IRA
N/A
Fund Classification
Fund Type
Open End Mutual Fund
Name
Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
AHTAX - Profile
Distributions
- YTD Total Return 5.2%
- 3 Yr Annualized Total Return -5.0%
- 5 Yr Annualized Total Return N/A
- Capital Gain Distribution Frequency N/A
- Net Income Ratio 1.06%
- Dividend Yield 3.2%
- Dividend Distribution Frequency Annually
Fund Details
-
Legal NameAmerican Beacon AHL TargetRisk Fund
-
Fund Family NameAmerican Beacon
-
Inception DateApr 30, 2019
-
Shares OutstandingN/A
-
Share ClassA
-
CurrencyUSD
-
Domiciled CountryUnited States
-
ManagerRussell Korgaonkar
Fund Description
The Fund seeks to achieve its investment objective by allocating all or substantially all of its assets across equities, bonds (including inflation index-linked bonds), interest rates, corporate credit, and commodities primarily through derivative instruments. The Fund implements its strategy by utilizing a proprietary quantitative model, which is designed to provide a stable level of volatility regardless of market conditions.
The Fund invests primarily in futures (including equity index futures, interest rate futures, bond futures and government bond futures, such as treasury futures), swaps (including commodity swaps, credit default swaps, currency swaps, interest rate swaps, and total return swaps) and forward contracts, but also may invest in other types of derivative instruments. The Fund uses derivative instruments to enhance total return, to manage certain investment risks or to substitute for the purchase or sale of the underlying securities, and to hedge against currency exchange rates. The Fund expects that, under normal market conditions, the notional value of its derivatives exposure generally will exceed that of its net assets. In connection with the Fund’s use of derivatives, the Fund also may hold significant amounts of U.S. Treasury securities and other foreign developed market sovereign short-term bonds issued by countries such as France, Germany, the United Kingdom and other developed countries, or short-term investments, including government money market funds, cash and time deposits in order to meet collateral and applicable asset coverage requirements under the Investment Company Act of 1940, as amended (the “Investment Company Act”). The Fund may also invest in zero coupon securities. The Fund’s use of derivatives will have the economic effect of financial leverage. The Fund’s investments are generally made without restriction as to issuer market capitalization, country, currency, maturity or credit rating. The Fund may invest in derivatives instruments that provide exposure to below investment grade securities, which are commonly referred to as “junk bonds” and to issuers in the U.S. and foreign developed and emerging markets, including sovereign debt. The Fund may invest in non-US currencies, securities denominated in non-U.S. currencies, foreign currency forward contracts, including non-deliverable forwards (“NDFs”), non-U.S. currency futures contracts, and swaps for currencytransactions. The Fund also may invest in government obligations.
The sub-advisor’s strategy is designed to provide an excess return with a stable level of volatility regardless of market conditions. The sub-advisor seeks to do this by using systematic algorithms (a mathematical model) to scale positions based on the net asset value (“NAV”) of the Fund. The algorithm measures the degree of volatility in a particular market. If the market is turbulent, and returns are volatile, the algorithm will reduce exposure. Conversely, it will increase exposure if the market is calm. This technique is called ‘volatility scaling’ and can be applied at various levels to achieve a balanced risk exposure through time, and across different asset classes. Volatility scaling aims to achieve a certain target level of volatility which is stable through time. The Fund has set an annualized volatility target of 10% of its NAV. Volatility is defined as the annualized standard deviation of returns. It is important to note that both the short and long term realized volatility of the Fund can and will differ from the targeted volatility and can be dependent on prevailing market conditions.
In addition to the volatility scaling described above, the strategy utilizes additional systematic overlays to control downside risk. The first of these is a momentum overlay, which uses past price behavior to identify periods when a market is in a downtrend. The strategy uses this information to scale down positions depending upon the strength of that trend, thereby reducing risk in falling markets. The second is a volatility switching mechanism, which reacts quickly to spikes in volatility by using a formula that is designed to minimize market transactions during periods of low volatility and increase market transactions during periods of heightened market volatility in order to maintain the Fund’s target level of volatility. Volatility switching is used to react more dynamically to market events. The third uses intraday data to identify dangerous environments in which fixed income assets no longer act as a hedge to equities and other assets. The combination of these overlays aims to reduce losses and improve risk-adjusted returns.
The Fund seeks to gain exposure to the commodity markets by investing up to 25% of its total assets in a wholly-owned subsidiary, which is organized under the laws of the Cayman Islands (the “Subsidiary”). Generally, the Subsidiary invests primarily in commodity swaps, but it may also invest in financial futures and forwards, fixed income securities, pooled investment vehicles, including open-end investment companies, and other investments intended to serve as margin or collateral for the Subsidiary’s derivative positions. The Fund invests in the Subsidiary in order to gain exposure to the commodities markets within the limitations of the federal tax law, rules and regulations that apply to “regulated investment companies.” Unlike the Fund, the Subsidiary may invest without limitation in commodity-linked derivatives; however, the Subsidiary and the Fund, in the aggregate, comply with applicable Investment Company Act asset coverage requirements with respect to their total investments in commodity-linked derivatives. In addition, the Fund and the Subsidiary comply with the same fundamental investment restrictions on an aggregate basis and the Subsidiary follows the same compliance policies and procedures as the Fund to the extent those restrictions, policies and procedures are applicable to the investment activities of the Subsidiary. Unlike the Fund, the Subsidiary does not, and will not, seek to qualify as a “regulated investment company” under Subchapter M of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended (“Subchapter M”). The Fund is the sole shareholder of the Subsidiary and does not expect shares of the Subsidiary to be offered or sold to other investors.
The Fund’s holdings may be frequently adjusted to reflect the sub-advisor’s assessment of changing risks, which could result in high portfolio turnover.
The Fund is non-diversified, which means that it is not limited to a percentage of assets that it may invest in any one issuer.
AHTAX - Performance
Return Ranking - Trailing
| Period | AHTAX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 5.2% | -23.1% | 13.0% | 29.64% |
| 1 Yr | -8.2% | -35.8% | 24.9% | 80.88% |
| 3 Yr | -5.0%* | -18.8% | 16.5% | 89.79% |
| 5 Yr | N/A* | -14.6% | 12.6% | N/A |
| 10 Yr | N/A* | -9.0% | 4.1% | N/A |
* Annualized
Return Ranking - Calendar
| Period | AHTAX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2022 | -20.8% | -48.5% | 15.7% | 74.60% |
| 2021 | -2.3% | -10.0% | 21.8% | 80.08% |
| 2020 | 1.5% | -5.8% | 15.2% | 57.89% |
| 2019 | N/A | -7.6% | 6.4% | N/A |
| 2018 | N/A | -6.8% | 8.1% | N/A |
Total Return Ranking - Trailing
| Period | AHTAX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 5.2% | -29.8% | 13.0% | 29.64% |
| 1 Yr | -8.2% | -35.8% | 24.9% | 80.88% |
| 3 Yr | -5.0%* | -18.8% | 16.5% | 89.79% |
| 5 Yr | N/A* | -14.6% | 12.6% | N/A |
| 10 Yr | N/A* | -9.0% | 6.3% | N/A |
* Annualized
Total Return Ranking - Calendar
| Period | AHTAX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2022 | -20.8% | -48.5% | 15.7% | 75.00% |
| 2021 | -2.3% | -10.0% | 21.8% | 79.67% |
| 2020 | 1.5% | -5.8% | 15.2% | 57.89% |
| 2019 | N/A | -6.8% | 6.4% | N/A |
| 2018 | N/A | -6.8% | 11.4% | N/A |
NAV & Total Return History
AHTAX - Holdings
Concentration Analysis
| AHTAX | Category Low | Category High | AHTAX % Rank | |
|---|---|---|---|---|
| Net Assets | 804 M | 1.96 M | 15.7 B | 21.26% |
| Number of Holdings | 13 | 2 | 3255 | 79.53% |
| Net Assets in Top 10 | 725 M | 349 K | 12.1 B | 21.26% |
| Weighting of Top 10 | 92.95% | 22.2% | 100.0% | 20.35% |
Top 10 Holdings
- American Beacon Cayman Targetrisk Co Ltd 21.66%
- American Beacon Cayman Targetrisk Co Ltd 21.66%
- American Beacon Cayman Targetrisk Co Ltd 21.66%
- American Beacon Cayman Targetrisk Co Ltd 21.66%
- American Beacon Cayman Targetrisk Co Ltd 21.66%
- American Beacon Cayman Targetrisk Co Ltd 21.66%
- American Beacon Cayman Targetrisk Co Ltd 21.66%
- American Beacon Cayman Targetrisk Co Ltd 21.66%
- American Beacon Cayman Targetrisk Co Ltd 21.66%
- American Beacon Cayman Targetrisk Co Ltd 21.66%
Asset Allocation
| Weighting | Return Low | Return High | AHTAX % Rank | |
|---|---|---|---|---|
| Bonds | 96.15% | 0.00% | 106.59% | 3.54% |
| Cash | 3.85% | -65.52% | 88.88% | 62.20% |
| Stocks | 0.00% | 0.00% | 238.38% | 93.31% |
| Preferred Stocks | 0.00% | 0.00% | 6.21% | 50.79% |
| Other | 0.00% | -72.87% | 73.78% | 72.44% |
| Convertible Bonds | 0.00% | 0.00% | 8.92% | 72.05% |
Bond Sector Breakdown
| Weighting | Return Low | Return High | AHTAX % Rank | |
|---|---|---|---|---|
| Government | 96.15% | 0.00% | 99.78% | 4.33% |
| Cash & Equivalents | 3.85% | 0.22% | 100.00% | 91.34% |
| Derivative | 0.00% | 0.00% | 71.81% | 65.35% |
| Securitized | 0.00% | 0.00% | 52.99% | 67.72% |
| Corporate | 0.00% | 0.00% | 98.28% | 79.92% |
| Municipal | 0.00% | 0.00% | 19.13% | 57.09% |
Bond Geographic Breakdown
| Weighting | Return Low | Return High | AHTAX % Rank | |
|---|---|---|---|---|
| US | 67.29% | -17.22% | 99.80% | 7.48% |
| Non US | 28.86% | -2.67% | 63.37% | 7.09% |
AHTAX - Expenses
Operational Fees
| AHTAX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Expense Ratio | 1.30% | 0.44% | 3.72% | 60.47% |
| Management Fee | 0.90% | 0.00% | 1.50% | 52.36% |
| 12b-1 Fee | 0.25% | 0.00% | 1.00% | 43.11% |
| Administrative Fee | N/A | 0.05% | 0.70% | 93.55% |
Sales Fees
| AHTAX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Front Load | 5.75% | 2.50% | 5.75% | 14.29% |
| Deferred Load | N/A | 1.00% | 1.00% | N/A |
Trading Fees
| AHTAX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Max Redemption Fee | N/A | 0.50% | 2.00% | N/A |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
| AHTAX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Turnover | 195.00% | 0.00% | 441.00% | 75.25% |
AHTAX - Distributions
Dividend Yield Analysis
| AHTAX | Category Low | Category High | AHTAX % Rank | |
|---|---|---|---|---|
| Dividend Yield | 3.23% | 0.00% | 37.53% | 63.64% |
Dividend Distribution Analysis
| AHTAX | Category Low | Category High | Category Mod | |
|---|---|---|---|---|
| Dividend Distribution Frequency | Annually | Annually | Monthly | Quarterly |
Net Income Ratio Analysis
| AHTAX | Category Low | Category High | AHTAX % Rank | |
|---|---|---|---|---|
| Net Income Ratio | 1.06% | -2.12% | 13.72% | 32.53% |
Capital Gain Distribution Analysis
| AHTAX | Category Low | Category High | Capital Mode | |
|---|---|---|---|---|
| Capital Gain Distribution Frequency | Annually | Annually | Annually |
AHTAX - Fund Manager Analysis
Managers
Russell Korgaonkar
Start Date
Tenure
Tenure Rank
Dec 31, 2018
3.42
3.4%
Russell Korgaonkar is Head of Portfolio Management at AHL. Mr. Korgaonkar joined the company in February 2001, and spent several years researching and building single-stock trading systems, including statistical arbitrage and fundamental factor models. He managed the equity neutral fund Man MAC Daylami from inception in 2005 until 2009, before concentrating on directional systems including a sector based equities model. He moved to his current role in March 2011, and has brought practical experience to the managed futures programs, where his team is responsible for high-level portfolio construction, investment management, and research.
Otto van Hemert
Start Date
Tenure
Tenure Rank
Feb 01, 2021
1.33
1.3%
Otto van Hemert is Director of Core Strategies and a member of AHL’s management and investment committees. He was previously Head of Macro Research at AHL. Prior to joining AHL in 2015, Mr. Van Hemert ran a systematic global macro fund at IMC for more than three years. Before that, he headed Fixed Income Arbitrage, Credit, and Volatility strategies at AQR, and was on the Finance Faculty at the New York University Stern School of Business, where he published papers in leading academic finance journals. Mr. Van Hemert holds a PhD in Finance from the University of Amsterdam, Master’s Degrees in Economics from Tinbergen Institute and the University of Amsterdam, and a Master’s Degree in Mathematics from Utrecht University.
Tenure Analysis
| Category Low | Category High | Category Average | Category Mode |
|---|---|---|---|
| 0.08 | 33.83 | 6.64 | 13.0 |