American Beacon adds floating income fund, targets ‘attractive’ loans

By Susanna Moon

Chicago, Dec. 14 – American Beacon Advisors, Inc. said it launched the American Beacon Sound Point Floating Rate Income Fund on Monday, which aims for lofty income rates via “attractive” senior-secured first- and second-lien floating-rate loans and other floating-rate debt securities.

The fund is the first mutual fund reorganized into the American Beacon Funds family from Sound Point Capital Management, LP, according to a company press release.

The bank loan strategy used by the fund was first launched by Sound Point on Dec. 3, 2012. For the one-year period ending this Nov. 30, the fund was in the first percentile for total return in the U.S. open-end bank loan category among 250 bank loan funds as published by Morningstar.

“The fund seeks to provide a high level of current income consistent with strong risk-adjusted returns using an in-depth, bottom-up, fundamental approach with the goal of minimizing credit and default risks. The fund strives to achieve its objectives by identifying fundamentally attractive senior-secured first- and second-lien floating-rate loans and other floating-rate debt securities,” the release noted.

American Beacon manages the American Beacon Funds and is a Fort Worth-based provider of investment advisory services to institutional and retail markets. Sound Point Capital is a credit-oriented alternative asset manager.

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