American Beacon Adds a Second Sub-Advisor to a $156 Million Fund
Reported by Armie Margaret Lee
American Beacon has hired Standish Mellon Asset Management as the second sub-advisor to the $156.3 million American Beacon Treasury Inflation Protected Securities Fund. Standish Mellon joins NISA Investment Advisors, LLC, which has sub-advised the fund since its inception in June 2004.
Company Press Release
FT. WORTH, TX--(Marketwire - December 15, 2009) - The American Beacon Funds are proud to announce the addition of Standish Mellon Asset Management Company LLC ("Standish") as a new sub-advisor to the American Beacon Treasury Inflation Protected Securities ("TIPS") Fund(SM).
Standish is one of 19 wholly-owned asset management subsidiaries within BNY Mellon Asset Management (a division of The Bank of New York Mellon Corporation). Standish was founded in 1933 and is dedicated exclusively to fixed income and credit solutions.
Treasury Inflation Protected Securities, first issued by the U.S. Treasury in 1997, are U.S. Government-guaranteed bonds designed to protect investors from rising inflation. They are inflation-indexed securities that guarantee investors a real rate of return above inflation. Led by Robert Bayston (Director of Liquid Products) who has been with Standish since 1991, the Standish team has been using TIPS in its portfolios since the Treasury first issued inflation-indexed bonds.
Standish becomes the second sub-advisor to the $156.3 million American Beacon TIPS Fund. They join NISA Investment Advisors, LLC ("NISA"). NISA has sub-advised the TIPS Fund since its inception in June 2004.
Given the stimulus measures enacted through various fiscal and monetary programs and the appearance of continued caution from the U.S. Federal Reserve Board (the "Fed"), many market observers believe higher inflation could be a real concern in the near future. And forecasters predict an increase in TIPS investing such that demand may soon exceed supply.
"With the anticipated growth and demand that we expect for the TIPS Fund, we're very excited to add Standish to our sub-advisor line-up. As a well respected fixed income manager, this allows us to further diversify the Fund," said Gene Needles, President of the American Beacon Funds.
When investing in the TIPS market, active management is particularly important to potentially avoiding transaction costs, funding/liquidity costs, and cyclical inefficiencies. Standish's experience and expertise being added to the TIPS Fund offers continued commitment to style and instrument purity and provides investors with effective, efficient exposure to the TIPS market.
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, please contact your Financial Advisor, call 1-800-967-9009 or visit www.americanbeaconfunds.com. The Prospectus should be read carefully before investing.
There is no guarantee that the investment objectives will be met. Investing in debt securities entails interest rate risk which is the risk that debt securities will decrease in value with increases in market interest rates.
Distributed by Foreside Fund Services, LLC. American Beacon Funds and American Beacon Treasury Inflation Protected Securities Fund are service marks of American Beacon Advisors, Inc.