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Trending ETFs

Name

Price

Aum/Mkt Cap

YIELD

Exp Ratio

Watchlist

$10.05

$804 M

3.21%

$0.32

1.30%

Vitals

YTD Return

4.9%

1 yr return

-13.1%

3 Yr Avg Return

-6.8%

5 Yr Avg Return

N/A

Net Assets

$804 M

Holdings in Top 10

93.0%

52 WEEK LOW AND HIGH

$10.1
$9.57
$11.73

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

$10.05

$804 M

3.21%

$0.32

1.30%

AHTAX - Profile

Distributions

  • YTD Total Return 4.9%
  • 3 Yr Annualized Total Return -6.8%
  • 5 Yr Annualized Total Return N/A
  • Capital Gain Distribution Frequency N/A
  • Net Income Ratio 1.06%
DIVIDENDS
  • Dividend Yield 3.2%
  • Dividend Distribution Frequency Annually

Fund Details

  • Legal Name
    American Beacon AHL TargetRisk Fund
  • Fund Family Name
    American Beacon
  • Inception Date
    Apr 30, 2019
  • Shares Outstanding
    N/A
  • Share Class
    A
  • Currency
    USD
  • Domiciled Country
    United States
  • Manager
    Russell 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.
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AHTAX - Performance

Return Ranking - Trailing

Period AHTAX Return Category Return Low Category Return High Rank in Category (%)
YTD 4.9% -23.1% 18.0% 27.69%
1 Yr -13.1% -38.9% 7.1% 76.06%
3 Yr -6.8%* -19.1% 16.5% 87.65%
5 Yr N/A* -14.5% 12.6% N/A
10 Yr N/A* -8.4% 4.4% 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% 73.05%
2021 -2.3% -10.0% 21.8% 78.31%
2020 1.5% -5.8% 15.2% 58.90%
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 4.9% -29.8% 18.0% 27.69%
1 Yr -13.1% -38.9% 7.1% 76.06%
3 Yr -6.8%* -19.1% 16.5% 87.65%
5 Yr N/A* -14.5% 12.6% N/A
10 Yr N/A* -8.4% 6.7% 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% 73.44%
2021 -2.3% -10.0% 21.8% 77.91%
2020 1.5% -5.8% 15.2% 58.90%
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 643 K 15.7 B 20.60%
Number of Holdings 13 2 3255 80.45%
Net Assets in Top 10 725 M 349 K 12.1 B 20.68%
Weighting of Top 10 92.95% 22.2% 100.0% 21.12%

Top 10 Holdings

  1. American Beacon Cayman Targetrisk Co Ltd 21.66%
  2. American Beacon Cayman Targetrisk Co Ltd 21.66%
  3. American Beacon Cayman Targetrisk Co Ltd 21.66%
  4. American Beacon Cayman Targetrisk Co Ltd 21.66%
  5. American Beacon Cayman Targetrisk Co Ltd 21.66%
  6. American Beacon Cayman Targetrisk Co Ltd 21.66%
  7. American Beacon Cayman Targetrisk Co Ltd 21.66%
  8. American Beacon Cayman Targetrisk Co Ltd 21.66%
  9. American Beacon Cayman Targetrisk Co Ltd 21.66%
  10. American Beacon Cayman Targetrisk Co Ltd 21.66%

Asset Allocation

Weighting Return Low Return High AHTAX % Rank
Bonds
96.15% 0.00% 194.08% 6.77%
Cash
3.85% -163.86% 88.88% 60.53%
Stocks
0.00% 0.00% 238.38% 93.98%
Preferred Stocks
0.00% 0.00% 6.21% 50.00%
Other
0.00% -72.87% 73.78% 78.57%
Convertible Bonds
0.00% 0.00% 8.92% 68.42%

Bond Sector Breakdown

Weighting Return Low Return High AHTAX % Rank
Government
96.15% 0.00% 99.78% 4.89%
Cash & Equivalents
3.85% 0.22% 100.00% 90.98%
Derivative
0.00% 0.00% 71.81% 65.79%
Securitized
0.00% 0.00% 52.99% 66.54%
Corporate
0.00% 0.00% 98.74% 77.07%
Municipal
0.00% 0.00% 19.13% 55.26%

Bond Geographic Breakdown

Weighting Return Low Return High AHTAX % Rank
US
67.29% -17.22% 123.28% 10.90%
Non US
28.86% -2.67% 70.80% 9.40%

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% 59.85%
Management Fee 0.90% 0.00% 1.50% 53.56%
12b-1 Fee 0.25% 0.00% 1.00% 47.16%
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% 13.64%
Deferred Load N/A 1.00% 5.00% 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% 76.21%

AHTAX - Distributions

Dividend Yield Analysis

AHTAX Category Low Category High AHTAX % Rank
Dividend Yield 3.21% 0.00% 12.34% 66.17%

Dividend Distribution Analysis

AHTAX Category Low Category High Category Mod
Dividend Distribution Frequency Annually Annually Quarterly Annually

Net Income Ratio Analysis

AHTAX Category Low Category High AHTAX % Rank
Net Income Ratio 1.06% -2.12% 13.72% 32.06%

Capital Gain Distribution Analysis

AHTAX Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually

Distributions History

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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 6.56 13.0