AHTIX — American Beacon AHL TargetRisk Fund, Institutional Class

AHTIX Fund Overview

AHTIX — American Beacon AHL TargetRisk Fund, Institutional Class is a US mutual fund managed by American Beacon Funds, categorised as Intermediate Treasury / Sovereign Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: American Beacon Funds
• Category: Intermediate Treasury / Sovereign Bond
• Assets under management: $135.10M
• 1-year return: 20.2%
• Ticker: AHTIX
• SEC CIK: 0000809593
• SEC series ID: S000064066
• Share class ID: C000207200

AHTIX Investment Objective and Strategy

American Beacon AHL TargetRisk Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by American Beacon Funds.

Investment objective

The Funds investment objective is capital growth.

Principal investment strategy

The Fund seeks to achieve its investment objective by allocating all or substantially all of its assets across equities, bonds (including inflation index-linked bonds), interest rates, corporate credit, and commodities primarily through derivative instruments. The Fund implements its strategy by utilizing a proprietary quantitative model, which is designed to provide a stable level of volatility regardless of market conditions. The Fund invests primarily in futures (including equity index futures, bond index futures, interest rate futures, bond futures and government bond futures, such as treasury futures), swaps (including commodity swaps, credit default swaps, and total return swaps) and foreign currency forward contracts, but also may invest in other types of derivative instruments. The Fund uses derivative instruments to enhance total return, to manage certain investment risks or to substitute for the purchase or sale of the underlying securities, and to hedge against currency exchange rates.

The Fund expects that, under normal market conditions, the notional value of its derivatives exposure generally will exceed that of its net assets. In connection with the Funds use of derivatives, the Fund also may hold significant amounts of ? U.S. Treasury securities and other foreign developed market sovereign short-term bonds issued by countries such as France, Germany, the United Kingdom and other developed countries, or short-term investments, cash and time deposits in order to meet collateral requirements. The Fund may also invest in zero coupon securities. The Funds use of derivatives will have the economic effect of financial leverage. The Funds investments are generally made without restriction as to issuer market capitalization, country, currency, or maturity. The Fund may invest in derivatives instruments that provide exposure to below investment grade securities, which are commonly referred to as junk bonds and to issuers in the U.S.

and foreign developed and emerging markets, including sovereign debt. The Fund may invest in non-US currencies, instruments denominated in non-U.S. currencies, foreign currency forward contracts, including non-deliverable forwards (NDFs), and non-U.S. currency futures contracts. The Fund also may invest in government obligations. The sub-advisors strategy is designed to provide an excess return with a stable level of volatility regardless of market conditions. The sub-advisor seeks to do this by using systematic algorithms (a mathematical model) to scale positions based on the net asset value (NAV) of the Fund. The algorithm measures the degree of volatility in a particular market. As volatilities increase, the algorithm will look to reduce exposure. Conversely, it will increase exposure, subject to risk limits, if the market is calm and volatilities are decreasing.

This technique is called volatility scaling and can be applied at various levels to achieve a balanced risk exposure through time, and across different asset classes. Volatility scaling aims to achieve a certain target level of volatility which is stable through time. The Fund has set an annualized volatility target of 10% of its NAV. Volatility is defined as the annualized standard deviation of returns. It is important to note that both the short and long term realized volatility of the Fund can and will differ from the targeted volatility and can be dependent on prevailing market conditions. In addition to the volatility scaling described above, the strategy utilizes additional systematic overlays to control downside risk. The first of these is a momentum overlay, which uses past price behavior to identify periods when a market is in a downtrend.

The strategy uses this information to scale down positions depending upon the strength of that trend, thereby reducing risk in falling markets. The second is a volatility switching mechanism, which reacts quickly to spikes in volatility by using a formula that is designed to minimize market transactions during periods of low volatility and increase market transactions during periods of heightened market volatility in order to maintain the Funds target level of volatility. Volatility switching is used to react more dynamically to market events. The third uses intraday data to identify dangerous environments in which fixed income assets no longer act as a hedge to equities and other assets. The combination of these overlays aims to reduce losses and improve risk-adjusted returns. The Fund seeks to gain exposure to the commodity markets by investing up to 25% of its total assets in a wholly-owned subsidiary, which is organized under the laws of the Cayman Islands (the Subsidiary).

Generally, the Subsidiary invests primarily in commodity swaps, but it may also invest in financial futures and forwards, fixed income securities, pooled investment vehicles, including open-end investment companies, and other investments intended to serve as margin or collateral for the Subsidiarys derivative positions. The Fund invests in the Subsidiary in order to gain exposure to the commodities markets within the limitations of the federal tax law, rules and regulations that apply to regulated investment companies. Unlike the Fund, the Subsidiary may invest without limitation in commodity-linked derivatives; however, the Subsidiary and the Fund, in the aggregate, comply with applicable requirements for derivatives transactions set forth in Rule 18f-4 under the Investment Company Act of 1940, as amended (the Investment Company Act).

In addition, the Fund and the Subsidiary comply with the same fundamental investment restrictions on an aggregate basis, and the Subsidiary follows the same compliance policies and procedures as the Fund to the extent those restrictions, policies and procedures are applicable to the investment activities of the Subsidiary. Unlike the Fund, the Subsidiary does not, and will not, seek to qualify as a regulated investment company under Subchapter M of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended (Subchapter M). The Fund is the sole shareholder of the Subsidiary and does not expect shares of the Subsidiary to be offered or sold to other investors. The Funds holdings may be frequently adjusted to reflect the sub-advisors assessment of changing risks, which could result in high portfolio turnover.

The Fund may have significant exposure to issuers located in, or with economic ties to, Europe. However, as the sector and geographic composition of the Funds portfolio changes over time, the Funds exposure to Europe may decline, and the Funds exposure to other geographic areas may increase. The Fund is non-diversified, which means that it is not limited to a percentage of assets that it may invest in any one issuer.

AHTIX Holdings

Top 10 holdings of American Beacon AHL TargetRisk Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.

View all AHTIX holdings

AHTIX Portfolio Allocation

Asset-class allocation of American Beacon AHL TargetRisk Fund by percentage of net assets, from the latest SEC N-PORT filing.

AHTIX Performance

Total returns for AHTIX (as of 2026-10-01), from SEC filings.

AHTIX Risk Information

Risk metrics for AHTIX, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 11.34%

AHTIX Costs and Fees

AHTIX costs about $104 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.04%
• Gross expense ratio: 1.21%
• Portfolio turnover: 313%
• Brokerage commissions: 2.27 bps of average net assets (SEC N-CEN)

AHTIX Cashflows

Over the 12 months to 2026-06, American Beacon AHL TargetRisk Fund had net outflows of $117.31M, from monthly SEC N-PORT filings.

AHTIX Debt Constituents

Largest debt holdings of American Beacon AHL TargetRisk Fund by percentage of net assets, from the latest SEC N-PORT filing.

AHTIX Prospectus and SEC Filings

Official American Beacon AHL TargetRisk Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2026-04-29
• Prospectus (485BPOS) — filed 2025-04-28
• Prospectus (485BPOS) — filed 2024-04-29
• Portfolio holdings (N-PORT) — filed 2026-08-11
• Portfolio holdings (N-PORT) — filed 2026-05-29
• Portfolio holdings (N-PORT) — filed 2026-02-18
• Annual census (N-CEN) — filed 2026-03-16
• Annual census (N-CEN) — filed 2025-03-13

Related Funds

Other Intermediate Treasury / Sovereign Bond funds tracked on ABC INVEST:

• Vanguard Intermediate-Term Bond Index Fund (VBIIX)
• Vanguard Intermediate-Term Treasury Index Fund (VSIGX)
• iShares U.S. Treasury Bond ETF (GOVT)
• iShares 3-7 Year Treasury Bond ETF (IEI)
• Fidelity SAI Inflation-Protected Bond Index Fund (FSPWX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.