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Trending ETFs

Name

As of 06/21/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$9.69

$136 M

5.23%

$0.51

1.99%

Vitals

YTD Return

3.5%

1 yr return

8.5%

3 Yr Avg Return

2.3%

5 Yr Avg Return

N/A

Net Assets

$136 M

Holdings in Top 10

28.5%

52 WEEK LOW AND HIGH

$9.7
N/A
N/A

Expenses

OPERATING FEES

Expense Ratio 1.99%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover 326.00%

Redemption Fee N/A


Min Investment

Standard (Taxable)

$100,000

IRA

N/A


Fund Classification

Fund Type

Open End Mutual Fund


Name

As of 06/21/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$9.69

$136 M

5.23%

$0.51

1.99%

PSCIX - Profile

Distributions

  • YTD Total Return 3.5%
  • 3 Yr Annualized Total Return 2.3%
  • 5 Yr Annualized Total Return N/A
  • Capital Gain Distribution Frequency Annually
  • Net Income Ratio 1.28%
DIVIDENDS
  • Dividend Yield 5.2%
  • Dividend Distribution Frequency Monthly

Fund Details

  • Legal Name
    American Beacon SSI Alternative Income Fund
  • Fund Family Name
    Palmer Square
  • Inception Date
    May 25, 2012
  • Shares Outstanding
    N/A
  • Share Class
    Y
  • Currency
    USD
  • Domiciled Country
    US
  • Manager
    Alexander Volz

Fund Description

The Fund seeks primarily to implement its strategy by investing in convertible securities, including convertible preferred securities, and establishing short positions, or hedges, in the common stock of the issuers of the convertible securities. The short positions are intended to reduce the Fund’s exposure to decreases in the price of the related common stock. The Fund seeks to hedge its long positions in this way on a security-by-security basis. The Fund may also use other instruments to establish hedges, including exchange-traded funds (“ETFs”), options, including non-deliverable options (“NDOs”), and currency forwards, as appropriate, to reduce unwanted exposures.
The term “convertible security” refers to a bond or a preferred stock (including a trust preferred security) that can be converted into shares of a company’s common stock. The Fund’s strategy is managed on a day-to-day basis by SSI Investment Management LLC, the sub-advisor to the Fund.
The Fund may also implement other investment strategies, depending on market conditions, including investing in convertible securities with attractive yields and relatively little equity price sensitivity, selling call options against the related equities and convertible bonds to receive the value of the option (also known as “covered-call writing”), and investing in non-convertible bonds and preferred stock that offer attractive yield and relative value as compared to other investment alternatives. The investment focus will shift through market cycles as opportunities change.
Pursuant to its strategy, the Fund seeks returns that exceed prevailing short-term interest rates, such as the return on 90-day U.S. Treasury bills, from four primary sources: 1) net dividend income on equity and convertible securities positions; 2) interest income on convertible securities positions; 3) interest rebates on short positions; and 4) net capital gains from trading profits. In combining long positions in convertible securities with short positions in common stock of the issuers of those securities, the Fund seeks to maintain a “hedged convertible” investment portfolio with income and returns which are generally less volatile than and have low correlation with the broader capital markets, short-term interest rates and capital markets indices (absolute returns).
The Fund generally invests in convertible securities that are part of an issuance of at least $40 million in size and are issued by companies with market capitalizations between $500 million and $10 billion. The convertible securities are typically callable by the issuer and are not limited as to duration or maturity. The issuers of the convertible securities in which the Fund will invest may include U.S. or non-U.S. companies, real estate investment trusts (“REITs”), and emerging-market companies.
The instruments may be denominated in U.S. or foreign (non-U.S.) currencies, which may be traded on U.S. exchanges. Such foreign exposures are typically hedged back to the U.S. dollar using transactions in foreign currency futures and forward contracts. The Fund may also engage in foreign currency transactions on a spot (cash) basis at the rate prevailing in the currency exchange market.
The Fund may hold investment-grade, below investment-grade (i.e., “high yield” or “junk” bonds) and unrated securities that are deemed by the sub-advisor to be of equivalent quality. A significant portion of the Fund’s holdings is expected to be unrated. The sub-advisor performs fundamental credit analysis to examine each issuer’s credit quality and relative value based on internally and externally generated research, nationally recognized credit rating agency research, if available, and company financial statements, among other sources. The Fund’s holdings may include variable and floating-rate coupon, zero-coupon instruments and restricted securities, such as those issued under Rule 144A of the Securities Act of 1933. To a lesser extent, the Fund may invest long or short in ETFs to adjust or hedge exposures. The Fund’s holdings may include secured, partially secured, and unsecured obligations. The unsecured obligations in which the Fund invests may also be referred to as debentures.
The Fund may have significant exposure to the Financials sector. However, as the sector composition of the Fund’s portfolio changes over time, the Fund’s exposure to the Financials sector may be lower at a future date, and the Fund’s exposure to other market sectors may be higher. The Fund may also invest in long or short positions in derivative instruments, such as futures, forwards, swaps, options and warrants, to hedge exposures in the Fund. Futures contracts generally include those based on U.S. treasuries and foreign currencies, forward contracts are generally forward currency contracts (including NDFs), swaps generally include interest rate and credit default swaps, options generally include call and put options (including NDOs), and warrants are generally similar to long-dated call options. On a short-term basis, the Fund may invest cash balances in other investment companies, including a government money market fund advised by the Manager, with respect to which the Manager receives a management fee.
The sub-advisor seeks to identify convertible security investments by assessing, among other attributes, the quality, income, liquidity and “equity sensitivity” of the security (i.e., the sensitivity of a convertible security’s price to changes in the price of the issuer’s common stock). The sub-advisor also considers the availability of the common stock that it intends to short. After acquiring a convertible security, the Fund establishes a short position in the common stock, American Depositary Receipt (“ADR”), call option or other equity-related instrument of the same issuer. The Fund may also establish short positions in ETFs. The size of each short position is based on the sensitivity of the convertible security’s price to changes in the price of the issuer’s common stock. As a result, the Fund’s short positions will generally be smaller on a dollar value basis than its long positions since a convertible security’s price is typically less sensitive than that of the common stock. The Fund may also invest in non-convertible bonds and preferred stock. Such investments would typically not include a short position in a related equity instrument.
When implementing its covered-call writing strategy, the Fund seeks to sell call options related to its equity and convertible bond holdings. In doing so, the Fund seeks to minimize its exposure to changes in the underlying equity price yet retain the proceeds received from selling the option (the “option premium”). Typically, higher volatility in equity prices leads to larger proceeds from selling options.
The sub-advisor considers selling a convertible security and closing the related short position when it identifies other more attractive investment opportunities, when it anticipates a potentially unfavorable change in the structure of a convertible security or the underlying company or to satisfy shareholder redemptions, among other reasons.
The Fund may engage in active and frequent trading of portfolio securities to achieve its principal investment strategies.
Read More

PSCIX - Performance

Return Ranking - Trailing

Period PSCIX Return Category Return Low Category Return High Rank in Category (%)
YTD 3.5% -11.6% 15.8% 56.00%
1 Yr 8.5% -33.0% 41.7% 9.71%
3 Yr 2.3%* -10.5% 13.4% 17.35%
5 Yr N/A* -4.8% 11.1% 7.23%
10 Yr N/A* -4.6% 7.6% N/A

* Annualized

Return Ranking - Calendar

Period PSCIX Return Category Return Low Category Return High Rank in Category (%)
2023 2.5% -31.7% 23.2% 13.27%
2022 -6.4% -20.7% 10.7% 26.80%
2021 -7.9% -12.4% 14.7% 46.67%
2020 6.8% -13.2% 12.9% 31.65%
2019 N/A -11.7% 7.9% 17.14%

Total Return Ranking - Trailing

Period PSCIX Return Category Return Low Category Return High Rank in Category (%)
YTD 3.5% -11.7% 15.8% 56.00%
1 Yr 8.5% -33.0% 41.7% 9.71%
3 Yr 2.3%* -10.5% 13.4% 14.29%
5 Yr N/A* -4.8% 11.1% 7.23%
10 Yr N/A* -4.6% 7.6% N/A

* Annualized

Total Return Ranking - Calendar

Period PSCIX Return Category Return Low Category Return High Rank in Category (%)
2023 7.8% -31.7% 23.2% 13.27%
2022 -5.0% -20.7% 10.7% 26.80%
2021 3.9% -12.4% 14.7% 57.78%
2020 10.2% -12.7% 12.9% 55.70%
2019 N/A -11.5% 13.2% 25.71%

NAV & Total Return History


PSCIX - Holdings

Concentration Analysis

PSCIX Category Low Category High PSCIX % Rank
Net Assets 136 M 105 K 12.6 B 35.58%
Number of Holdings 175 5 2526 50.00%
Net Assets in Top 10 40.6 M -619 M 6.53 B 28.85%
Weighting of Top 10 28.54% 7.6% 96.1% 80.49%

Top 10 Holdings

  1. American Beacon U.S. Government Money Market Select Fund 12.19%
  2. MFA Financial, Inc. 2.40%
  3. RWT Holdings, Inc. 2.30%
  4. Liberty Media Corp. 1.94%
  5. Two Harbors Investment Corp. 1.85%
  6. PennyMac Corp. 1.74%
  7. Liberty TripAdvisor Holdings, Inc. 1.58%
  8. SoFi Technologies, Inc. 1.52%
  9. Sphere Entertainment Co. 1.52%
  10. Western Digital Corp. 1.51%

Asset Allocation

Weighting Return Low Return High PSCIX % Rank
Bonds
81.85% -1.04% 63.30% 81.73%
Convertible Bonds
77.37% 0.00% 95.47% 6.73%
Cash
33.32% -225.56% 102.75% 49.04%
Preferred Stocks
5.38% 0.00% 5.67% 1.92%
Other
0.00% -11.90% 43.69% 72.12%
Stocks
-20.56% -57.09% 325.56% 94.23%

Bond Sector Breakdown

Weighting Return Low Return High PSCIX % Rank
Corporate
70.28% 0.00% 100.00% 8.65%
Cash & Equivalents
12.19% 0.00% 100.00% 83.65%
Government
0.10% 0.00% 73.33% 77.88%
Derivative
0.00% 0.00% 30.95% 75.96%
Securitized
0.00% 0.00% 27.70% 73.08%
Municipal
0.00% 0.00% 3.82% 73.08%

Bond Geographic Breakdown

Weighting Return Low Return High PSCIX % Rank
US
81.85% -1.04% 80.93% 81.73%
Non US
0.00% -64.71% 9.68% 74.04%

PSCIX - Expenses

Operational Fees

PSCIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 1.99% 0.73% 9.52% 50.49%
Management Fee 1.30% 0.13% 1.65% 82.69%
12b-1 Fee 0.00% 0.00% 1.00% 15.25%
Administrative Fee N/A 0.06% 0.40% N/A

Sales Fees

PSCIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load N/A 2.75% 5.75% N/A
Deferred Load N/A 1.00% 5.00% N/A

Trading Fees

PSCIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A 1.00% 2.00% N/A

Related Fees

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.

PSCIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover 326.00% 30.00% 483.00% 62.92%

PSCIX - Distributions

Dividend Yield Analysis

PSCIX Category Low Category High PSCIX % Rank
Dividend Yield 5.23% 0.00% 0.75% 69.23%

Dividend Distribution Analysis

PSCIX Category Low Category High Category Mod
Dividend Distribution Frequency Monthly Annually Quarterly Annually

Net Income Ratio Analysis

PSCIX Category Low Category High PSCIX % Rank
Net Income Ratio 1.28% -2.49% 4.20% 12.62%

Capital Gain Distribution Analysis

PSCIX Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually Annually

Distributions History

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PSCIX - Fund Manager Analysis

Managers

Alexander Volz


Start Date

Tenure

Tenure Rank

May 25, 2012

10.02

10.0%

Alexander W. Volz. Mr. Volz has been a Portfolio Manager and Convertible Trader of SSI Investment Management, Inc. since 2006 and was a Vice President and Convertible Trader for SSI Investment Management, Inc. from 2002 to 2006. Mr. Volz has 20 years of experience in portfolio management and/or convertible securities trading. Prior to joining SSI Investment Management, Inc., Mr. Volz was a Convertible Trader for Southern Trading Partners and Wachovia Securities from 1997 to 2002. Mr. Volz received a B.A., Economics from Vanderbilt University in 1996.

George Douglas


Start Date

Tenure

Tenure Rank

May 25, 2012

10.02

10.0%

Portfolio Manager of the Hedged Convertible strategies SSI’s Chief Investment Officer Board of Director and Chairperson of the Executive Committee Prior to joining SSI, George was Director of Quantitative Equity Investments at CS First Boston Asset Management Named to Institutional Investor's "All American Research Team" four times MBA, Finance; MS, Statistics; BS, Mathematics, University of Wisconsin

Dagney Maseda


Start Date

Tenure

Tenure Rank

Aug 01, 2013

8.84

8.8%

Dagney Hollander is a portfolio manager at SSI and oversees the daily management of the Hedged Convertible investment portfolios. Her industry experience as a trading assistant, analyst and portfolio manager began since 2003. She received a BS in Finance, summa cum laude, from California State University, Northridge. She is a CFA Level III Candidate.

Tenure Analysis

Category Low Category High Category Average Category Mode
0.08 30.59 6.3 9.42