American Beacon Debuts a Natural Resources ETF

On Tuesday, American Beacon rolled out the actively managed American Beacon GLG Natural Resources ETF (MGNR). The fund seeks long-term capital appreciation by taking a global perspective on companies operating in the natural resources sector or adjacent areas.

The fund’s sub-advisor is GLG LLC, a subsidiary of the Man Group plc. Albert Chu, who joined Man Group last year from BNY Mellon, is the portfolio manager for MGNR and joined Man Group from BNY Mellon. Chu has worked in natural resources and commodities investing for more than 20 years, according to the press release.

“I’m pleased to be collaborating with American Beacon to offer investors a natural resources‐focused solution that meets the needs of today’s market. The natural resources sector presents captivating yet complex opportunities, and I’m looking forward to combining my personal experience with Man Group’s technology‐driven approach to give investors access to this compelling market sector,” Chu said.

American Beacon President and CEO Jeff Ringdahl said American Beacon has worked with Man Group for almost 10 years. The partnership has resulted in one other ETF and three open-end mutual funds, according to the press release.

A Portfolio of Natural Resources Equities

MGNR’s portfolio will generally hold 30 to 60 securities. Those securities are drawn from the entire spectrum of natural resources companies. They include those involved in the extraction and/or harvesting of natural resources to those involved in the manufacture and distribution of products created from natural resources. The fund will primarily hold large and mid-cap companies. However, it can also invest in small caps, according to the prospectus.

At launch, MGNR’s top holdings were BP, Cemex, Pilgrim’s Pride, Permian Resources, and Capstone Copper. The fund has an expense ratio of 0.75%

American Beacon previously launched the American Beacon AHL Trend ETF (AHLT) last year. AHLT has $33.2 million in assets and is an actively managed fund that seeks capital appreciation through alternative investments.

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