The Fund’s investment objectives are to seek income and, secondarily, absolute returns.
A DEFENSIVE COMPLEMENT TO A FIXED-INCOME ALLOCATION
SSI Investment Management, a boutique, institutional asset management firm founded in 1973, seeks to add value by delivering competitive, risk-adjusted returns for its clients while focusing on consistency and preservation of capital. SSI offers investment solutions using a mix of convertible and equity strategies that may appeal to investors seeking growth while limiting downside risk, especially during volatile and rapidly changing market conditions. The firm applies quantitative disciplines and fundamental research in its management of alternative and traditional portfolios for institutional and high net worth investors.
Firm inception: 1973
Portfolio Managers:
INCOME AND RISK-MANAGED CAPITAL APPRECIATION
Multiple sources of return:
INVESTMENT STRATEGY
| Fund Details as of 02/17/2026 | |
|---|---|
| Ticker | SSIJX |
| Inception Date | 5/17/2019 |
| Prior Class Inception Date | 5/25/2012 |
| Fund Share Class NAV | $10.08 |
|
Total Fund Assets ($M) as of 1/31/2026 |
359.3 |
|
Share Class Assets ($M) as of 1/31/2026 |
25.9 |
| Sub-Advisor % as of 12/31/2025 | |
|
SSI Investment Management LLC100.0%
|
|
| Benchmark(s) | |
| Bloomberg US Aggregate Bond Index ICE BofA US 3-Month Treasury Bill Index |
|
| CUSIP | 024526246 |
| Gross Expense Ratio (%) | 1.89% |
| Net Expense Ratio (%) 1 | 1.35% |
| Expense Caps (%) | 0.92% |
| Actual SEC 30-Day Yield (%) | 3.03 |
| Unsubsidized SEC 30-Day Yield (%) 2 | 2.52 |
Net asset value (NAV) is the value of one share of the portfolio excluding any sales charges.
Total Return
| Name/Class | QTR* | YTD* | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception |
|---|---|---|---|---|---|---|---|
| SSI Alternative Income (R5) | 1.44% | 0.90% | 7.50% | 7.69% | 4.58% | 5.33% | 3.84% |
| Bloomberg US Aggregate Bond Index | 0.58% | 0.11% | 6.85% | 3.65% | -0.20% | 1.88% | 1.97% |
| ICE BofA US 3-Month Treasury Bill Index | 0.91% | 0.29% | 4.09% | 4.80% | 3.23% | 2.21% | 1.63% |
| Name/Class | QTR* | YTD* | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception |
|---|---|---|---|---|---|---|---|
| SSI Alternative Income (R5) | 1.38% | 7.40% | 7.40% | 8.28% | 4.62% | 5.04% | 3.79% |
| Bloomberg US Aggregate Bond Index | 1.10% | 7.30% | 7.30% | 4.66% | -0.36% | 2.01% | 1.97% |
| ICE BofA US 3-Month Treasury Bill Index | 0.97% | 4.18% | 4.18% | 4.81% | 3.17% | 2.18% | 1.62% |
Performance shown is historical and is not indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, click here.
*Not Annualized.
Important Information: All investing involves risk, including possible loss of principal. Indexes are unmanaged and one cannot invest directly in an index.
For any Class of the Fund that began operating within the 10-year/since inception period shown, the performance shown prior to the inception date of the Class is that of a class (or series of classes) previously in operation. The combined returns have not been adjusted for any difference between the fees and expenses of the Class and the historical fees and expenses of the included previous class (or classes). If the previous class(es) had lower expenses, the resulting performance would be better than the Class would have realized during the same period. If the previous class(es) had higher expenses, the resulting performance would be lower than the Class would have realized during the same period. A portion of fees charged to the R5 Class of SSI Alternative Income Fund has been waived since Class inception (May 17, 2019) to 2021 and in 2023 through 2024. A portion of fees charged to the Investor Class of SSI Alternative Income Fund was waived in 2016 and 2019 through 2024. A portion of fees charged to the Y Class of SSI Alternative Income Fund was waived in 2016 and 2019 through 2024. Performance prior to waiving fees was lower than actual returns shown for periods when fees were waived. Specific information about any Fund may be found in Performance Disclaimers or in the prospectus.
The ICE BofA U.S. 3-Month Treasury Bill Index is designed to measure the total return on cash, including price and interest income, based on short-term government Treasury bills of about 90-day maturity.
The ICE BofA U.S. 3-Month Treasury Bill Index is a product of ICE Data Indices, LLC and is used with permission. ICE® is a registered trademark of ICE Data Indices, LLC or its affiliates and BofA® is a registered trademark of Bank of America Corporation licensed by Bank of America Corporation and its affiliates (“BofA”), and may not be used without BofA’s prior written approval. The index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its third party suppliers and, along with the ICE BofA trademarks, has been licensed for use by American Beacon Funds. ICE Data and its Third Party Suppliers accept no liability in connection with the use of such index data or marks. See prospectus for a full copy of the Disclaimer.
S&P credit ratings for long-term obligations (or issuers thereof) are AAA, AA, A, BBB, BB, B, CCC, CC, C and D in decreasing order. For example, obligations rated AAA are judged to be of the highest quality, BBB to be of medium grade, CCC are judged to be speculative and obligations rated D are in default. Obligations rated in one of the four highest categories are considered to be investment grade while all other ratings are considered non-investment grade.
as of 12/31/2025
| Real Estate Investment Trusts | 9.3% |
| Medical Specialties | 8.5% |
| Packaged Software | 8.5% |
| Pharmaceuticals: Major | 6.2% |
| Investment Managers | 4.7% |
| Computer Peripherals | 4.4% |
| Semiconductors | 4.3% |
| Information Technology Services | 4.2% |
| Finance/Rental/Leasing | 3.8% |
| Electric Utilities | 3.8% |
Includes long convertible bond and preferred stock holdings only. Excludes equity short positions and cash.
as of 12/31/2025
| Average Hedge Ratio | 56.0% |
| Average Conversion Premium | 95.6% |
| Average Issue Size | $727mm |
| Avg % Above Theoretical (Fair) Value | 0.04% |
Source: SSI Investment Management LLC.
as of 12/31/2025
| Standard Deviation | 2.57 |
as of 12/31/2025
| Convertibles | 87.1% |
| Cash Associated With Shorts | 42.9% |
| Cash | 8.6% |
| Preferred Stock – Public | 1.8% |
| Equity | -40.4% |
as of 12/31/2025
| 0 to 3 Years | 56.4% |
| 3 to 5 Years | 37.5% |
| 5 to 10 Years | 2.4% |
| 10 to 15 Years | 1.7% |
| 15+ Years | 2.1% |
Includes long convertible bond and preferred stock holdings only. Excludes equity short positions and cash.
The use of fixed-income securities, including convertible securities, entails interest rate and credit risks. Interest rate risk is the risk that debt securities will decrease in value with increases in market interest rates. In addition, the value of a convertible security could fluctuate based on the value of the underlying stock. Credit risk is the risk that a debt issuer will fail to make timely payment of interest or principal; if the credit rating of an issuer declines, then the price of its debt securities may also decline. Derivative instruments may be highly sensitive to market factors, have less liquidity than other investments and involve the potential for losses to exceed the amount invested. Investments in high-yield securities (commonly referred to as “junk bonds”), including restricted securities and floating-rate securities, are subject to greater levels of credit, interest rate, market and liquidity risks than investment-grade securities. Short sales involve special risks, including greater reliance on the sub-advisor’s ability to accurately anticipate the future value of a security or instrument; the Fund’s losses are potentially unlimited in a short sale. Investing in foreign and emerging markets may involve heightened risk due to currency fluctuations and economic and political risks. Investing in small- and medium-capitalization stocks may involve greater volatility and lower liquidity than larger company stocks. To the extent the Fund invests more heavily in particular sectors, its performance will be sensitive to factors affecting those sectors. Financial sector companies are heavily regulated and particularly sensitive to interest rate fluctuations. Please see the prospectus for a complete discussion of the Fund’s risks. There can be no assurances that the investment objectives of this Fund will be met.
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