Bond market volatility is now 5x higher than it was pre-2022.1
Are your clients truly prepared for what comes next?
We can help you uncover opportunities, enhance income diversification and reduce overall risk for your client portfolios.
Don’t get caught off guard again
American Beacon can help you navigate today’s market challenges and find solutions to meet your clients’ needs. Our diversified income suite is designed to face challenges like rising interest rates, inflation, credit and issuer nuances, and currency issues.
Traditional portfolios are outdated
Diversification balances out an income allocation to withstand macroeconomic challenges. Most portfolios start with a Core allocation — we recommend adding a mix of fixed income solutions:
Core: Benchmark driven asset allocation
Strategic: Seeks to generate consistent income and attractive risk-adjusted returns by using a broad range of fixed income sectors and strategies
High Income: Seeks to deliver elevated levels of income by targeting segments of the fixed-income market with higher yield potential
Alternative: Seeks to generate income from non-traditional and often less correlated segments of the fixed-income market
Diversification in Fixed Income Can Reduce Risk and May Enhance Performance
The impact of diversifying a fixed income portfolio is the potential to increase yields, lower correlations and reduce risk. Here’s an illustration of how a diversified fixed income portfolio can improve risk adjusted returns through strategic combinations of asset classes:
Note: Chart is for illustrative purposes only and uses capital market assumptions. Model assumptions are Core Bonds: 5% yield, 6% standard deviation and 1.00 correlation. Strategic income: 6% yield, 7% standard deviation and 0.60 correlation. High income: 8% yield, 8% standard deviation and 0.40 correlation. Alternative: 5% yield, 6% standard deviation and 0.00 correlation. Correlation is to the Bloomberg U.S. Aggregate Bond Index. Strategic Income seeks to generate consistent income and attractive risk-adjusted returns by using a broad range of asset classes, sectors, and strategies. High Income seeks to deliver elevate levels of income by targeting segments of the fixed-income market with higher yield potential. Alternative Income seeks to generate income from non-traditional and often less correlated segments of the fixed-income market.
American Beacon’s Diversified Income Solutions
American Beacon TwentyFour Strategic Income Fund
Seeks to generate consistent income and attractive risk-adjusted returns by using a broad range of asset classes, sectors, and strategies.
Goal:
Attractive income with the potential
for strong risk-adjusted returns
Tickers:
R5 TFGIX
Investor TFGPX
Y Shares TFGYX
A Shares TFSAX
C Shares TFGCX
Morningstar Category:
Multisector bond
American Beacon Developing World Income Fund
Seeks to deliver elevated levels of income by targeting segments of the fixed-income market with higher yield potential.
Goal:
Pursuing elevated yield opportunities in
developing market debt
Tickers:
R5 AGEIX
Investor AGEPX
Y Shares AGEYX
A Shares AGUAX
C Shares AGECX
Morningstar Category:
Emerging markets bond
American Beacon SiM High Yield Opportunities Fund
Seeks to deliver elevated levels of income by targeting segments of the fixed-income market with higher yield potential.
Goal:
High conviction investing built on
disciplined, repeatable process
Tickers:
R5 SHOIX
Investor SHYPX
Y Shares SHOYX
A Shares SHOAX
C Shares SHOCX
Morningstar Category:
High-yield bond
American Beacon SSI Alternative Income Fund
Seeks to generate income from non-traditional and often less correlated segments of the fixed-income market.
Goal:
Multiple income drivers with low correlation
to traditional markets
Tickers:
R5 SSIJX
Investor PSCAX
Y Shares PSCIX
Morningstar Category:
Relative Value Arbitrage
American Beacon’s Suite of Income Solutions
Our suite of fixed income funds can help to deliver returns and risk mitigation across the spectrum of fixed income:
Core
American Beacon Garcia Hamilton Quality Bond Fund
American Beacon NIS Core Plus Bond Fund
American Beacon DoubleLine Floating Rate Fund
American Beacon TwentyFour Short Term Bond Fund
Strategic
American Beacon DoubleLine Select Income Fund
American Beacon TwentyFour Strategic Income Fund
High Income
American Beacon Developing World Income Fund
American Beacon SiM High Yield Opportunities Fund
Alternative
American Beacon SSI Alternative Income Fund
Important Information: This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations or speak with their financial advisors before making any investment decisions. Diversification does not assure a profit nor protect against loss.
Volatility is a statistical measure of risk. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security. Standard Deviation is a measure of the historical volatility of the Fund’s returns.
1 Source: Morningstar. Note: Represented by the Bloomberg U.S. Aggregate Bond Index.
All investing involves risk, including possible loss of principal. Please see Risk Disclaimers (https://americanbeaconfunds.com/risk-disclaimers) for each Fund’s risks.
The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Bloomberg does not approve or endorse this material, or guarantee the accuracy or completeness of any information herein, or make any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, shall not have any liability or responsibility for injury or damages arising in connection therewith.
©2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Let’s talk about what’s next
Navigate opportunistic, shifting, and volatile markets with a flexible, actively managed approach built for dynamic market conditions. Let’s talk about American Beacon’s options for you.