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By DailyAlts Staff The second quarter of 2015 ended on June 30, and that date was also the occasion for a flurry of new fund launches. Among them, the American Beacon Ionic Strategic Arbitrage Fund (MUTF: IONAX ), a fund designed to seek capital appreciation with low volatility and reduced correlation to stocks and interest rates. The new fund follows the launch of a managed futures fund with AHL last August, and the sale of American Beacon to two private equity firms. In addition, American Beacon has one additional liquid alternative fund in registration, a long/short equity fund that will be sub-advised by Grosvenor Capital Management. Multi-Strategy Approach The American Beacon Ionic Strategic Arbitrage Fund will pursue its investment objectives by employing a “strategic arbitrage strategy” that can be broken down into a quartet of sub-strategies: Convertible arbitrage, credit/rates relative value arbitrage, equity arbitrage, and volatility arbitrage. According to the fund’s prospectus, under typical conditions, the fund’s assets will be allocated as follows: 40-50% of the fund’s assets will be allocated to its convertible arbitrage sub-strategy, which involves identifying and capitalizing on the pricing of a company’s convertible securities relative to its common stock; Between 20% and 30% of the fund’s assets will be allocated to ” credit/rates relative value arbitrage ,” which involves investing in mortgage-related derivatives (and other derivatives) the fund’s managers consider relatively inexpensive; Another 30-40% of the fund’s assets will be allocated to equity arbitrage , and; The remainder, 5-15%, will be allocated to volatility arbitrage – strategies that, respectively, seek to profit from inefficiencies between share classes of a company’s stock, and the movement of prices, regardless of market direction. Ionic Capital Management is the fund’s sub-advisor, and the firm’s CIO Bart Baum is among its portfolio managers. Mr. Baum is joined by fellow principals Adam Radosti and Daniel Stone, as well as portfolio manager Doug Fincher. Fund Details Shares of the American Beacon Ionic Strategic Arbitrage Fund are available in five share classes: A (IONAX), C (MUTF: IONCX ), Y (MUTF: IONYX ), institutional (MUTF: IONIX ), and investor (MUTF: IONPX ). The management fee across all share classes is 1.05%. A, C, and Y-class shares have respective net-expense ratios of 3.78%, 4.53%, and 3.48%; while institutional- and investor-class shares have respective net-expense ratios of 3.38% and 3.76%. The minimum initial investment is lowest for C-class shares, at $1,000; while A and investor-class shares have a $2,500 minimum; and Y and institutional-class shares have initial minimums of $100,000 and $250,000, respectively. All of the expense ratios above include 1.74% of “Dividends & Interest Expenses on Securities Sold Short,” which is an investment expense that the SEC requires to be included in the expense ratio. For more information, visit the fund’s web page . Scalper1 News
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