MutualFundWire.com: Am Beacon Takes Over a 3YO ETF
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Tuesday, April 29, 2025

Am Beacon Takes Over a 3YO ETF


The folks at a subadvised fund firm near Dallas are taking over a three-year-old ETF.

Earlier this month, Greg Stumm, president and CEO of Resolute Investment Managers and of its American Beacon subsidiary, and Doug Fincher, portfolio manager at Ionic Capital Management, confirmed that Irving, Texas-based American Beacon has adopted the Ionic Inflation Protection ETF, which has transformed into the American Beacon Ionic Inflation Protection ETF. American Beacon Advisors, Inc. succeeds Tidal Investments LLC as the fund's investment advisor and succeeds Tidal ETF Services, LLC as the fund's administrator, while Ionic continues to serve as the fund's subadvisor.

The reorganization, which the Tidal ETF Trust board approved back in November, took effect on April 11, 2025. The ETF is now an actively managed, diversified series of American Beacon Select Funds.

The fund's ticker remains CPII, and it remains primarily listed on the NYSE Arca, Inc. Its expense ratio, formerly 71 basis points, is now 75bps. CPII now has $12.29 million in AUM.

The adoption also involved several other provider changes for CPII:
  • K&L Gates LLP took over as the ETF's counsel, succeeding Godfrey & Kahn, S.C.;
  • PricewaterhouseCoopers LLP took over as the fund's independent accounting firm, replacing Cohen & Company, Ltd.; and
  • State Street Bank and Trust Company succeeded U.S. Bancorp Fund Services, LLC (dba U.S. Bank Global Fund Services as transfer agent and replaced U.S. Bank National Association as custodian. (State Street also now serves as the ETF's securities lending agent.)

    • ACA's Foreside continues to serve as CPII's distributor. Fincher, Bart Baum (principal and chief investment officer at Ionic), and Daniel Stone (principal at Ionic) continue to serve as the fund's PMs. (Stone and Baum have PMed CPII since inception, on June 28, 2022.)

    Stumm puts the adoption deal in the context of American Beacon and Resolute's continuing efforts "to partner with asset managers who provide unique and differentiated soltuions."

    "We see significant opportunities in emerging solutions within the U.S. wealth market and, given Ionic's proven track record, innovative approaches like CPII align perfectly with our commitment to expand and enhance our offerings," Stumm states.

    Fincher notes that "inflation levels are stubborn" and worries that "many investors are not conditioned to consider inflation as part of their investment strategy."

    "While TIPS can protect investors against inflation, TIPS do not provide investors with the opportunity to profit from inflation," Fincher states. This is the solution that Ionic, alongside American Beacon, is providing to the retail market with CPII — a means to potentially profit directly from inflation."


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