The American Beacon Ionic Inflation Protection ETF Places Inflation Strategies at the Forefront During a Stubborn Inflationary Era
American Beacon Advisors, Inc. (“American Beacon”), an experienced provider of investment advisory services to institutional and retail markets, announced today that it has assumed management of the Ionic Inflation Protection ETF (“CPII”) with Ionic Capital Management LLC (“Ionic”) continuing involvement in a sub-advisory role. Effective April 14, 2025, American Beacon will serve as the investment advisor and Ionic will serve as the sub-advisor to the newly adopted fund: American Beacon Ionic Inflation Protection ETF (the “Fund”) (Ticker: CPII).
The Fund’s adoption marks the third ETF added to American Beacon’s product suite in less than two years.
Greg Stumm, president and CEO of Resolute Investment Managers and American Beacon, said, “We have always sought to partner with asset managers who provide unique and differentiated solutions, and Ionic is no exception. 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.”
The Fund, managed by Ionic portfolio managers Bart Baum, Daniel Stone and Doug Fincher, employs an inflation protection strategy using inflation swaps, options on swaps (swaptions) and U.S. Treasury Inflation-Protected Securities (TIPS). The strategy offers investors an opportunity to benefit from elevated inflation and rising inflation expectations, while also serving as an alternative to traditional fixed-income allocations or as a diversifier within an equity portfolio.
Doug Fincher said, “Despite the Federal Reserve’s recent efforts, inflation isn’t going away – inflation levels are stubborn, and economic policies are shifting under the Trump administration. Given the preceding decades of muted price increases, 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. 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.”
For more information about the Fund, visit www.americanbeaconadvisors.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 and exchange-traded 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, 2024, American Beacon Advisors had $58.8 billion in assets under management. For more information, visit www.americanbeaconadvisors.com.
About Ionic
Ionic Capital Management® LLC (“Ionic”) is a New York-based alternative asset manager founded in 2006 by Bart Baum and Daniel Stone. Ionic manages multiple private investment vehicles employing different investment strategies, including long volatility, relative value arbitrage, inflation protection and value equity. As of December 31, 2024, Ionic had $4.9 billion in assets under management (inclusive of notionally funded mandates).
Disclosures
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus and summary prospectus contain this and additional information regarding the Fund. To obtain a prospectus and summary prospectus, please contact your financial advisor, call 833.471.3562 or visit www.americanbeaconfunds.com. The prospectus and summary prospectus should be read carefully before investing.
Important Information: Past performance is no guarantee of future results.
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. Derivative instruments, including swaps and swaptions, may be highly sensitive to market factors, have less liquidity than other investments and involve the potential for losses to exceed the amount invested. The use of fixed-income securities and derivatives entails interest rate and credit risks. Interest rate risk is the risk that investments will decrease in value with increases in market interest rates. Credit risk is the risk that an issuer will fail to make timely payment of interest or principal. U.S. Treasury securities are guaranteed only as to the timely payment of interest and principal when held to maturity. The market prices for such securities are not guaranteed and will fluctuate. In deflationary periods, the Fund may suffer a loss. The Fund may have high portfolio turnover risk, which could increase the Fund’s transaction costs and possibly have a negative impact on performance. 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. Please see the prospectus for a complete discussion of the Fund’s risks.
The Fund is new and has a limited operating history. To see Fund performance, once available, please visit www.americanbeaconfunds.com.
Inflation: A general rise in prices throughout the U.S. economy, which the Fund measures using the non-seasonally adjusted U.S. City Average All Items Consumer Price Index for All Urban Consumers (the “CPI-U”).
Inflation Swap: Swaps are derivative contracts where one party “swaps” one type of cash flow for a different type of cash flow. In an inflation swap, one party agrees to pay to the other party the percentage increase in CPI-U during the term of the swap, while the other party agrees to pay back a fixed rate. The inflation swaps held by the Fund will typically increase in value if inflation increases and decrease in value if inflation decreases.
Swaption: A swaption is an option on a swap agreement that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium.” The Fund expects to focus on so-called “payer swaptions,” which give the Fund the right to pay fixed-rate payments and, in exchange, receive floating rate payments. Swaptions held by the Fund will typically increase in value if interest rates rise and decrease in value if interest rates fall.
Foreside Financial Services, LLC (“Foreside”) is the distributor of the American Beacon ETFs and is not affiliated with American Beacon or its sub-advisors.
Ionic Capital Management LLC ("Ionic") is a third-party sub-advisor to the American Beacon Ionic Inflation Protection ETF.
American Beacon is a registered service mark of American Beacon Advisors, Inc. American Beacon Funds and American Beacon Ionic Inflation Protection ETF are service marks of American Beacon Advisors, Inc.
AB80-PRESS-2025 | 04/25
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Contacts
Water & Wall
resolute@waterandwall.com
