American Beacon Advisors Bolsters ETF Offerings With New Natural Resources Fund

Rhea-AI Summary

American Beacon Advisors, Inc. partners with Man Group to launch the American Beacon GLG Natural Resources ETF. The Fund is a fully transparent, active equity strategy, offering investors exposure to a portfolio of approximately 30 to 60 securities within the natural resources value chain, including energy, materials, agriculture, and chemicals. The Fund will invest predominantly in North America, the U.K., and other developed countries. The Fund's shares became available on February 6, marking American Beacon's fifth active fund launched with Man Group and its affiliated businesses. The collaboration aims to offer investors a full suite of portfolio solutions that can serve their unique needs.

Insights

Market Research Analyst

The introduction of the American Beacon GLG Natural Resources ETF by American Beacon in collaboration with Man Group represents a strategic expansion of American Beacon's ETF portfolio. This move is indicative of the firm's response to an increasing investor appetite for specialized ETFs that offer targeted exposure to sectors like natural resources. The ETF's focus on a portfolio of 30 to 60 securities within the natural resources value chain suggests a diversified approach, which could attract investors looking to hedge against inflation or capitalize on sector-specific growth.

The choice of Albert Chu, a veteran with extensive experience in natural resources equities, as the portfolio manager may instill confidence among potential investors. The fund's hybrid approach to asset allocation that combines top-down macroeconomic analysis with bottom-up stock selection could offer a balanced strategy that mitigates sector-specific risks while seeking to maximize returns.

Financial Analyst

The launch of the American Beacon GLG Natural Resources ETF is a significant development for both American Beacon and Man Group, potentially impacting their financial performance. The ETF's performance will be closely watched by investors and analysts as it may reflect the effectiveness of the collaborative efforts between the two firms. A successful ETF can lead to an increase in assets under management (AUM), which is a critical metric for evaluating the financial health of investment advisory firms.

Given the ETF's transparency and active management, it may appeal to investors who are dissatisfied with passive investment strategies, especially in a sector that can be highly volatile. The fund's potential to offer a new avenue for investment in natural resources could be particularly attractive during times of economic uncertainty or when commodity prices are on the rise.

Commodities Expert

The natural resources sector encompasses a wide range of commodities, including energy, materials, agriculture and chemicals. The sector is known for its cyclical nature and sensitivity to global economic trends, geopolitical events and supply-demand dynamics. The American Beacon GLG Natural Resources ETF's strategy to predominantly invest in North America, the U.K. and other developed countries may be designed to capitalize on the stability and regulatory environments of these regions.

Investors interested in this ETF should be aware of the inherent risks associated with natural resources investments, such as price volatility due to unexpected changes in market conditions or geopolitical tensions. However, the fund's active management approach could potentially allow for nimble adjustments to the portfolio in response to such events, potentially offering a more resilient investment option within the sector.

The Firm Partners With Man Group to Launch the American Beacon GLG Natural Resources ETF

IRVING, Texas--(BUSINESS WIRE)-- American Beacon Advisors, Inc. (“American Beacon”), an experienced provider of investment advisory services to institutional and retail markets, announced today the launch of its second exchange-traded fund, the American Beacon GLG Natural Resources ETF (“the Fund”) (Ticker: MGNR).

Man Group plc (“Man Group”)’s U.S. based discretionary investment manager will serve as sub-advisor for the Fund and Albert Chu, CFA®, an industry veteran with more than 20 years of investment experience in natural resource equities and commodity futures, will serve as the Fund’s portfolio manager. The Fund’s shares became available February 6.

Building upon a 10-year partnership, this is the fifth active fund that American Beacon has launched with Man Group and its affiliated businesses, having most recently collaborated on the American Beacon AHL Trend ETF and the American Beacon AHL Multi-Alternatives Fund in August 2023.

“We’re very excited to launch our first natural resources-focused fund, especially alongside the trusted partner we have in Man Group,” Jeff Ringdahl, president and CEO of American Beacon and its parent company, Resolute Investment Managers, Inc., said. “We've been fortunate to enjoy mutual successes with Man Group and its subsidiaries for nearly a decade, so the launch of the American Beacon GLG Natural Resources ETF is a testament to our work together. At American Beacon, this represents another step forward in our journey to expand our ETF offerings and help investors address their diverse portfolio needs.”

Eric Burl, head of Discretionary at Man Group, said, “We’re thrilled to officially announce the launch of this Fund alongside American Beacon. We continuously look for experienced partners who can complement our expertise with their own, and American Beacon is a natural fit given our established working relationship. It appears that ETFs are becoming an essential part of an investor’s toolkit, and we believe this Fund will allow investors to extract potential value from dynamic natural resources and their associated equity universe.”

The Fund is a fully transparent, active equity strategy, offering investors exposure to a portfolio of approximately 30 to 60 securities within the natural resources value chain, including energy, materials, agriculture and chemicals, among others. While not limited in geographic scope, the Fund will invest predominantly in North America, the U.K. and other developed countries.

The Fund will deploy a hybrid approach to asset allocation, weighing top-down macroeconomic views on the market, financial environment and sector-specific analysis, while using that same information to inform bottom-up stock selection.

Becky Harris, senior vice president of Product Management & Corporate Development at American Beacon and Resolute, said, “This launch serves as our latest affirmation that we are committed to offering our investors a full suite of portfolio solutions that can serve their unique needs. While we’ve long had products that could serve as inflation hedges, launching a fund focused on natural resources further diversifies our product lineup. We have the conviction that this sector potentially holds tremendous value for our investors, and we are excited to work with Albert Chu, specifically, as he has a remarkable track record in this space.”

Albert Chu, portfolio manager at Man Group, said, “I’m pleased to be collaborating with American Beacon to offer investors a natural resources-focused solution that meets the needs of today’s market. The natural resources sector presents captivating yet complex opportunities, and I’m looking forward to combining my personal experience with Man Group’s technology-driven approach to give investors access to this compelling market sector.”

The sub-advisor to the American Beacon GLG Natural Resources ETF is Man Group’s discretionary investment manager, GLG LLC, based in New York. For more information about the American Beacon GLG Natural Resources ETF, visit www.americanbeaconfunds.com.

About American Beacon Advisors

American Beacon Advisors, Inc., an investment affiliate of Resolute Investment Managers, Inc., is an experienced 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 December 31, 2023, American Beacon Advisors had approximately $57.4 billion in assets under management. For more information, visit www.americanbeaconadvisors.com.

About Man Group

Man Group is a global, technology-empowered active investment management firm focused on delivering alpha and portfolio solutions for clients. Headquartered in London, they manage $161.2 billion* and operate across multiple offices globally. They invest across a diverse range of strategies and asset classes, with a mix of long only and alternative strategies run on a discretionary and quantitative basis, across liquid and private markets. Their investment teams work within Man Group’s single operating platform, enabling them to invest with a high degree of empowerment while benefiting from the collaboration, strength and resources of the entire firm. Their platform is underpinned by advanced technology, supporting their investment teams at every stage of their process, including alpha generation, portfolio management, trade execution and risk management.

Man Group’s clients and the millions of retirees and savers they represent are at the heart of everything they do. They form deep and long-lasting relationships and create tailored solutions to help meet their unique needs. They are committed to creating a diverse and inclusive workplace where difference is celebrated and everyone has an equal opportunity to thrive, as well as giving back and contributing positively to their communities. For more information about Man Group’s global charitable efforts, and their diversity and inclusion initiatives, please visit: https://www.man.com/corporate-responsibility.

Man Group plc is listed on the London Stock Exchange under the ticker EMG.LN and is a constituent of the FTSE 250 Index. Further information can be found at www.man.com.

* As at September 30, 2023. All investment management and advisory services are offered through the investment engines of Man AHL, Man Numeric, Man GLG, Man FRM, Man Varagon, Man Global Private Markets and Man Solutions.

Disclosures

You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and additional information regarding the Fund. To obtain a prospectus or summary prospectus for the Fund, please contact your financial advisor, call 833.471.3562 or visit americanbeaconfunds.com. The prospectus and summary prospectus should be read carefully before investing.

All investing involves risk, including possible loss of principal. The Fund is actively managed, and there can be no assurances that its investment objectives will be met. Concentration in natural resources and natural resources-related industries makes the Fund vulnerable to price movements of natural resources, which can result from supply and demand changes, environmental factors, government regulations, and political developments. Because the Fund may invest in fewer issuers than a more diversified portfolio, the fluctuating value of a single holding may have a greater effect on the value of the Fund. Investing in foreign and emerging market companies, either directly or indirectly through U.S. dollar denominated securities, may involve heightened risk due to currency fluctuations and economic and political risks. To the extent the Fund invests more heavily in a particular country or geographic region, its performance will be sensitive to factors affecting that country or region. The Fund may distribute higher capital gains than other ETFs. Limited partnership securities held by the Fund may be less liquid and entail fewer rights than stocks. Please see the prospectus for a complete discussion of the Fund’s risks.

The ETF is new and has a limited operating history. Any reference to the ETF’s liquid exposure refers to the ETF’s shares, not the ETF’s holdings.

Foreside Financial Services, LLC is the distributor of the American Beacon GLG Natural Resources ETF and American Beacon AHL Trend ETF, and is not affiliated with American Beacon or its sub-advisors.

The American Beacon Funds are distributed by Resolute Investment Distributors, Inc.

American Beacon is a registered service mark of American Beacon Advisors, Inc. American Beacon GLG Natural Resources ETF, American Beacon AHL Trend ETF and American Beacon AHL Multi-Alternatives Fund are service marks of American Beacon Advisors, Inc.

The Chartered Financial Analyst® (“CFA®”) designation is a globally recognized mark of distinction that attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management, research analysis and professional integrity.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240206299175/en/

Kevin Santo

Water & Wall Group

resolute@waterandwall.com

Source: American Beacon Advisors, Inc.

FAQ

What is the name of the newly launched ETF?

The newly launched ETF is called the American Beacon GLG Natural Resources ETF.

What is the ticker symbol for the American Beacon GLG Natural Resources ETF?

The ticker symbol for the American Beacon GLG Natural Resources ETF is MGNR.

When did the Fund's shares become available?

The Fund's shares became available on February 6.

How many securities does the Fund offer exposure to?

The Fund offers exposure to approximately 30 to 60 securities within the natural resources value chain.

Where will the Fund predominantly invest?

The Fund will predominantly invest in North America, the U.K., and other developed countries.