American Beacon SSI Alternative Income Fund Investor Class
PSCAX
NASDAQ- -
USD
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Capital Structure
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in mil. unless spec.Working Capital
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in mil. unless spec.Growth Rates
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in mil. unless spec.Quarterly Revenue
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in mil. unless spec.Quarterly Earnings Per Share
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in mil. unless spec.- Sector
- Financial Services
- Industry
- Asset Management - Income
- Address
- American Beacon Advisors DE United States of America
- IPO Date
- May 25, 2012
- CIK
- 0001318342
- Website
- americanbeaconfunds.com
- Similar Companies
- Business
- American Beacon SSI Alternative Income Fund Investor Class (PSCAX) is an open-end mutual fund that seeks income and, secondarily, absolute returns through a market-neutral convertible arbitrage strategy. The fund primarily invests in convertible securities, including convertible bonds and convertible preferred stocks; establishes short positions in underlying equities to hedge embedded options; and generates returns from multiple sources, including interest or dividend income on long convertible positions, interest rebates on short equity positions, alpha from identifying mispricings and arbitrage opportunities, and monetizing volatility via dynamic equity hedging. Sub-advised by SSI Investment Management LLC, a boutique institutional asset management firm founded in 1973, the fund employs quantitative disciplines and fundamental research, maintaining low interest-rate sensitivity with an average duration of approximately 1.1 years, a typical hedge ratio around 55%, and allocations primarily to convertibles (about 90%), cash associated with shorts (around 40%), and equity shorts (net negative exposure); top sectors include technology services, health technology, electronic technology, and real estate investment trusts, with holdings such as Western Digital Corp. 3% 11/15/28 and Redwood Trust Inc. 7.75% 6/15/27. Launched on May 25, 2012, and domiciled in the United States, the Investor Class (CUSIP 024526238) features a net expense ratio of 1.53%, an expense cap of 1.24% through December 31, 2025, a minimum initial investment of $2,500, semi-annual distributions, and total fund assets of approximately $328 million as of September 30, 2025. The fund targets institutional and high-net-worth investors seeking a defensive complement to fixed-income allocations with risk-managed capital appreciation and capital preservation, particularly in volatile markets; it operates globally through securities domiciled primarily in the U.S. but with exposure to international issuers via convertibles and shorts. Managed by a team including George M. Douglas (industry since 1977), Alexander W. Volz (since 1996), and Dagney M. Volz (since 2001), the strategy emphasizes position sizing, hedge ratios, and no leverage for risk mitigation. In January 2019, American Beacon's parent company, Resolute Investment Managers, acquired a majority interest in SSI Investment Management, enhancing the fund's integration and distribution as a natural extension of their partnership. The fund has sustained contractual expense waivers and reimbursements through 2025 across share classes, including the Investor Class, to maintain competitive costs amid market conditions. Recent portfolio adjustments as of mid-2025 increased allocations to balanced, deep-in-the-money, and mandatory convertibles to capitalize on gamma trading opportunities while reducing credit-oriented positions due to tight spreads, reflecting adaptive strategic shifts in response to evolving convertible market dynamics.