American Beacon AHL Managed Futures Strategy Fund Class C (AHLCX)

Overview

The described fund is essentially a financial instrument that employs a sophisticated, quantitative trading strategy alongside a systematic investment process. Its core objective is to leverage price trends across a wide spectrum of global markets. By focusing on derivative instruments, the fund aims to gain exposure to various asset classes such as stock indices, bonds, currencies, and interest rates. The strategy underscores a proactive approach to trading that seeks to benefit from market movements. Despite its broad market engagement, it is classified as non-diversified, implying a concentrated investment strategy that may focus on specific sectors or asset classes without spreading risk across a wider range of investments.

Products and Services

• Derivative Instruments:

  The fund predominantly invests in derivatives, a class of financial instruments whose value is derived from the performance of underlying assets, indexes, or benchmarks. These instruments are crucial for the fund's operation, allowing it to speculate on future price movements or hedge against potential risks.

• Futures Contracts:

  These are standardized agreements to buy or sell an asset at a predetermined future date and price. The fund uses futures to gain exposure to various market indexes and commodities, aiming to capitalize on predicted price movements without the need for physical ownership.

• Forward Contracts and Non-Deliverable Forwards (NDFs):

  Forwards are over-the-counter (OTC) contracts between two parties to buy or sell an asset at a specified future date for a price agreed upon today. NDFs are similar to forwards but are settled in cash rather than the underlying asset, usually used in currencies markets. These instruments allow the fund to engage in foreign exchange strategies, including hedging against currency risk and speculating on currency movements.