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American Beacon Launches Interval Fund: Portfolio Products

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American Beacon advisors launched the American Beacon Sound Point Enhancement Income Fund (SPEYX), a non-diversified interval fund.

Interval funds are continuously offered closed-end funds that periodically offer to repurchase their shares from shareholders. Unlike open-end mutual funds, interval funds do not provide daily liquidity but instead offer investors an ability to redeem up to a certain percentage of the fund at regular, periodic intervals.

This type of structure gives managers the flexibility to invest in assets or execute investment strategies that are less liquid and better suited for a longer holding period – strategies generally only available to institutional investors, according to American Beacon.

The fund’s sub-advisor, New-York-based Sound Point Capital, focuses its strategy on preserving capital in all market conditions and generating attractive rates of return with low volatility. Sound Point employs a fundamental, bottom-up approach to investing opportunistically in the credit markets.

The exact mix of assets in which it invests will be flexible and responsive to market conditions; however, Sound Point will focus primarily on a variety of credit-related instruments, including corporate obligations and securitized and structured issues of varying maturities, which includes fixed and floating-rate securities and bank loans.

Total operating expenses for Y shares are expected to range between 1.61% and 2.17%. Y shares require an initial $100,000 investment, but that can be achieved with aggregated purchase orders for more than one client, according to the prospectus.

Brown Brothers Harriman Launches BBH Income Fund

Brown Brothers Harriman & Co. launched the BBH Income Fund (BBNIX), an open end mutual fund seeks to provide maximum total return with an emphasis on current income, consistent with the preservation of capital and prudent investment management.

The fund seeks to achieve its investment objective by investing in a well-diversified portfolio of fixed income instruments, using a value-oriented approach.

The fund’s investments will primarily focus on notes and bonds issued by domestic and foreign corporations, financial institutions, the U.S. Government, government agencies and government guaranteed issuers, asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS), and loan transactions.

The fund will invest without limitations on the range of maturities of the debt securities it purchases and may hold securities with short-, medium- or long-term maturities.

Under normal market conditions, the fund is expected to achieve a duration (sensitivity to changes in interest rates) between 80% and 120% of the broad investment grade market, as represented by the Bloomberg Barclay’s US Aggregate Index.

Annual operating expenses, after initial fee waiver, are 070% for N shares and 0.50% for I shares, according to the fund’s SEC filing.

HFR Launches Risk Premia Indices

HFR recently launched the HFR Bank Systematic Risk Premia Indices, which it says is the most comprehensive family of Risk Premia indices available to investors and managers.

The family of indices includes 40 indices efficiently delineated along a nested matrix of established risk premia asset type and strategy.

The HFR Bank Systematic Risk Premia Indices offer daily performance reporting categorically delineated across a robust asset type and strategy/style premia matrix. Asset type includes indices of commodity, credit, currency, equity, multi, and rates. Styles include carry, momentum, quality, size, and value, as well as a number of other style premia.

Emphasizing the tactical granularity and modularization of the taxonomy, HFR includes indices of all styles within each given asset type, offering the most detailed insight into the performance of diverse, individual factor grouping.

The comprehensive family of indices utilizes a powerful yet transparent, rules-based methodology with the universe based on well-established risk premia products supported by bank providers. Swap-based performance is reported on a daily basis at the end of the trading day, net of all trading and execution costs.

Indices are rebalanced annually and performance is based on live data only, utilizing an inverse volatility weighted methodology.

‘When I’m 65’ Program Releases Three Free Retirement Planning Action Guides 

The When I’m 65 program released a set of three retirement action guides that can help investors plan for their long term financial independence.

The When I’m 65 program is a national documentary and multi-year engagement program exploring how financial and lifestyle choices today affect the whole of our lives.

The three guides — Starting to Save for Retirement, Ramp Up Savings for Your Retirement and Getting Closer to Retirement — are designed to help people ages 25–70 and at various life stages prepare for a financially secure retirement.

The free action guides are made possible by the Investor Protection Trust, the Investor Protection Institute and Kiplinger’s Personal Finance.

Check out last week’s portfolio products:  BlackRock Launches iShares Robotics and AI ETF: Portfolio Products.


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