For a second time, American Beacon has combined with Man Group to launch an alternative mutual fund. The new fund is the first offering from Man GLG’s recently hired Head of Emerging Market Debt Strategies, Guillermo Osses. The new American Beacon GLG Total Return Fund (MUTF:GLGAX), launched on May 20, is sub-advised by Man GLG, whereas the previously launched American Beacon AHL Managed Futures Strategy Fund (MUTF:AHLAX), which debuted August 2014, is sub-advised by Man AHL.
“We are looking forward to building off the success of our first mutual fund launch with our partners at Man Group,” said American Beacon CEO Gene L. Needles, Jr., in a recent statement. “The team at Man GLG has a proven investment process and the experience to navigate the increasingly complex environment of emerging market debt.”
Man AHL and Man GLG are both wholly owned subsidiaries of Man Group. But whereas Man AHL is a pioneer in systematic trading, Man GLG is a discretionary investment manager specializing in absolute return and long-only funds across asset classes, sectors, and geographies. GLG’s Mr. Osses, the new fund’s portfolio manager, has nearly a quarter-century of experience in emerging markets and fixed-income investing.
“We are excited to expand on Man’s existing partnership with American Beacon and introduce our second ‛40 Act product for US investors,” said Eric Burl, Man Group’s Co-Head of Global Sales and Head of Americas. “Combining American Beacon’s robust distribution with Man GLG’s emerging market debt expertise allows us to continue offering institutional quality products in the mutual fund format.”
Total Return Approach
The new fund employs bottom-up and top-down investment processes in which country credits, currencies, and local interest-rate curves are analyzed for relative value. Its investments include currencies, forwards, futures, options, swaps, and fixed-income investments from emerging markets, government-sponsored enterprises, and other bonds ranging from investment-grade to junk.
The fund’s investment objective is to seek a high current income and capital appreciation, but its prospectus notes that this objective is “non-fundamental” – which means it can be changed at any time.
The prospectus lists six share classes: A, C, Y, Institutional, Investor, and Ultra; with respective net-expense ratios of 1.58%, 2.33%, 1.28%, 1.18%, 1.56%, and 0.99%. The management fee across all share classes is 0.95%, and the minimum initial investments are $1,000 for C shares; $2,500 for A and Investor shares; $100,000 for Y shares; $250,000 for Institutional shares; and $500 million for Ultra shares.
For more information, view the new fund’s prospectus.