American Beacon Advisors and Apollo Global Management Debut Interval Fund
IRVING, Texas--(BUSINESS WIRE)--Sep 12, 2018--American Beacon Advisors, Inc. (“American Beacon”), a leading provider of investment advisory services to institutional and retail markets, today announced the launch of the American Beacon Apollo Total Return Fund, a newly organized interval fund and cross-platform credit vehicle. The fund’s shares became available today under the ticker symbol ATRYX.
The American Beacon Apollo Total Return Fund is the result of a partnership between American Beacon and Apollo Global Management, LLC (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”), one of the world’s largest alternative investment managers. The new fund’s strategy is to allocate investments across the credit landscape to areas in which Apollo believes produce the most attractive risk-adjusted returns.
“We’re thrilled to be partnering with Apollo on this new product – their expertise and dedication to client outcomes make them an ideal collaborator,” said Gene Needles, American Beacon’s Chairman and Chief Executive Officer. “The fund complements our comprehensive roster of strategies and provides investors with the potential to generate attractive risk-adjusted returns by leveraging the capabilities of one of the leading credit platforms in the world. Of significance, this fund may allow Main Street investors to seek to capitalize on some of the sharpest thinking Wall Street has to offer. We’re delighted to make this vehicle available to our clients.”
Apollo takes a value-driven approach to investing, leveraging a variety of strategies designed to allow each investor to meet his or her unique financial goals and return requirements while balancing risk appetite and liquidity needs.
The American Beacon Apollo Total Return Fund was developed in response to investors’ increasing appetite for strategies that have the flexibility to invest in multiple sectors and asset classes with the goal of delivering an attractive return and risk profile with lower correlation to traditional investments. The fund employs a strategy that has traditionally only been available to institutional investors. Delivering the product as an interval fund rather than as a mutual fund enables the Apollo team to leverage the strengths of its credit platform and encourages clients to stay invested long-term to fully realize the benefits.
“This fund has long been in development, and it’s exciting to see our team’s work finally come to fruition,” said James Zelter, Apollo’s Co-President and Chief Investment Officer of Apollo’s Credit business. “Most funds are single-strategy vehicles, whereas the American Beacon Apollo Total Return Fund has a comprehensive strategy that allows investors to access different aspects of Apollo’s broad credit expertise. Retail investors looking to generate attractive risk-adjusted returns can be confident that this fund is driven by the same strategies we’ve used for decades to provide our clients with long-term, consistent performance.”
About American Beacon Advisors
An investment affiliate of Resolute Investment Managers, Inc., American Beacon Advisors, Inc. is a leading provider of investment advisory services to institutional and retail markets. Established in 1986, American Beacon Advisors serves defined benefit plans, defined contribution plans, foundations, endowments, corporations and other institutional investors, as well as retail clients. The firm also provides corporate cash management and fixed-income separate account management. American Beacon Advisors manages the American Beacon Funds, a series of competitively priced mutual funds. The Funds employ a “manager of managers” investment style and currently include international and domestic equity, fixed-income and money market funds. As of June 30, 2018, American Beacon Advisors had $58.1 billion in assets under management; the affiliated companies of Resolute Investment Managers had $68.9 billion in assets under management. For more information, visit www.americanbeaconadvisors.com.
About Apollo Global Management
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Bethesda, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai. Apollo had assets under management of approximately $269 billion as of June 30, 2018 in credit, private equity, and real assets funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.apollo.com.
You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus contains this and additional information regarding the Fund. To obtain a prospectus, call 833.262.3226 or visit americanbeaconfunds.com. The prospectus should be read carefully before investing.
Important Information: The Fund is a non-diversified, closed-end management investment company structured as an “ interval fund ” and designed primarily for long-term investors. The Fund’s use of fixed-income and variable-rate securities, such as loans and related instruments of varying levels of seniority, corporate debt and notes, high yield securities, CLOs, CLNs, RMBS, CMBS and derivatives entails interest rate, liquidity, market and credit risks. Investing in foreign and emerging market securities may involve heightened risk due to currency fluctuations and economic and political risks. The Fund invests in real estate related securities, which involve additional risks such as limited liquidity and greater volatility. The Fund’s ability to borrow for investment purposes and otherwise use leverage can magnify these risks. There is no secondary market for the Fund’s shares, and the Fund expects that no secondary market will develop. Even though the Fund will make quarterly repurchase offers for its outstanding shares (currently expected to be for 5% per quarter), investors should consider shares of the Fund to be an illiquid investment. There is no guarantee that investors will be able to sell their shares at any given time or in the quantity desired. Please see the prospectus for a complete discussion of the Fund’s risks. There can be no assurances that the investment objectives of this Fund will be met.
Interval funds are legally classified as closed-end funds; however, they are very different from traditional closed-end funds. In addition, investors should carefully evaluate the costs of interval funds because they can have higher expenses than other closed-end funds and mutual funds. An investment in the Fund may not be appropriate for all investors and is not designed to be a complete investment program. In addition, because of the risk associated with the Fund’s ability to invest in obligations and related instruments of varying levels of seniority, including subordinated debt obligations, high yield securities, securities of distressed and defaulted issuers, delayed funding loans, illiquid securities, unsecured obligations, collateralized loan obligations, credit-linked notes, and derivatives and the Fund’s ability to use leverage, an investment in the Fund should be considered speculative and involving a high degree of risk. Be aware that investing in the Fund may result in a loss of some or all of the amount invested.
Investment in the Fund should be avoided when an investor has a short-term investing horizon and/or cannot bear the loss of some or all of his or her investment. An investment in the Fund is not suitable for investors who need certainty about their ability to access all of the money they invest in the short term.
American Beacon is a registered service mark of American Beacon Advisors, Inc. American Beacon Apollo Total Return Fund is a service mark of American Beacon Advisors, Inc.
The American Beacon Funds are distributed by Resolute Investment Distributors, Inc.
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CONTACT: Water & Wall Group
Danielle Orsino, 646-343-9672
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
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SOURCE: American Beacon
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PUB: 09/12/2018 10:30 AM/DISC: 09/12/2018 10:30 AM