MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

American Beacon Sound Point Floating Rate Income SPFPX

guilhermes
edited April 2017 in Fund Discussions
As some have noticed - this fund has been performing very well. Any insights about the managers’ investment process and associated risks?

Comments

  • guilhermes
    Rephrasing my original request for feedback.

    SPFPX is a Bank Loan Fund with a short history (2013 onwards), however when compared with its pears it seems to have significantly outperformed.

    There have been a few discussions related to SPFPX, one had to do with its high Sortino Ratio.

    The performance data is very impressive (see below from Morningstar)
    3 -Year Trailing Standard Deviation Return Sharpe Ratio Sortino Ratio
    03/31/2017

    OOSAX 3.54 3.63 0.98 1.92

    SAMBX 3.50 3.49 0.95 1.84

    SPFPX 1.71 5.33 2.95 11.99

    Category: BL 3.13 2.78 0.90 1.88

    However, I do not believe in free lunch. I am worrying about risks derived from the investment strategy.

    In the original post, I was requesting feedback from anyone has analyzed the investment process of the fund in detail.
  • TedTed
    edited April 2017
    @guilhermes: It appears that SPFPX 5* rating is predicated on it's 2013-15 performance. Since then I consider it to be a run-of-mill bank loan fund.
    Regards,
    Ted
    M*: SPFPX Performance:
    http://performance.morningstar.com/fund/performance-return.action?t=SPFPX&region=usa&culture=en_US
  • JunksterJunkster
    SPFPX outperformance the first three years was due to its miniscule assets under management. So miniscule that a couple of us on this forum held something like 15% of its total AUM. Since then AUM have skyrocketed and as Ted said it has been run of the mill, especially last year when it underperformed its peers.
  • AndyJ
    edited April 2017
    I looked into the process & holdings once a while back, and found everything I wanted to know in the fund literature, so I'd suggest starting there. Don't recall many details now - but I do remember one of the tenets was to tread lightly if at all in cyclicals, which may partly explain past differences in relative performance and the higher Sortino.

    Just imho, I'd be looking into multisectors rather than dedicated bank loan funds at this point.
  • guilhermes
    Thank you all for the input, I will do more research as suggested, but also wait much longer for them to demonstrate a track record. Overall, there is no urgency, I am invested in RPHYX for the very short run, and PIMIX for a longer term.
Sign In or Register to comment.