Fund Evaluator:

American Beacon SSI Alternative Inc Inv Overview

American Beacon SSI Alternative Inc Inv (PSCAX) is an actively managed Alternative Relative Value Arbitrage fund. American Beacon launched the fund in 2012.

The investment seeks income and, secondarily, absolute returns. The fund seeks primarily to implement its strategy by investing in convertible securities, including convertible preferred securities, and establishing short positions, or hedges, in the common stock or American Depositary Receipt (“ADR”) of the issuers of the convertible securities. It may also use other instruments to establish hedges, including exchange-traded funds (“ETFs”), options and currency forwards, as appropriate, to reduce unwanted exposures. The fund may have significant exposure to the Financial sector.

About American Beacon SSI Alternative Inc Inv (PSCAX)

There are 3 members of the management team with an average tenure of 13.80 years: Alexander Volz (2012), Dagney Maseda (2013), George Douglas (2012). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA US 3M Trsy Bill TR USD index with a weighting of 100%. American Beacon SSI Alternative Inc Inv has 248 securities in its portfolio. The top 10 holdings constitute 24.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

American Beacon SSI Alternative Inc Inv is part of the Alternative Strategies global asset class and is within the Alternative fund group. American Beacon SSI Alternative Inc Inv has -3.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is -36.5%. There is -3.5% allocated to foreign stock, and 9.8% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 78.4% convertible bond). American Beacon SSI Alternative Inc Inv has 51.8% of the portfolio in cash.

Assets Under Management

The fund has $1 million in total assets, which is below the $1 billion average for the Relative Value Arbitrage category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PSCAX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The American Beacon SSI Alternative Inc Inv expense ratio is high compared to funds in the Relative Value Arbitrage category. American Beacon SSI Alternative Inc Inv has an expense ratio of 1.69%, which is 19% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. American Beacon SSI Alternative Inc Inv has a portfolio turnover rate of 172%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 252% for the Relative Value Arbitrage category.

Recently, in the month of July 2026, American Beacon SSI Alternative Inc Inv returned 0.2%, which earned it a grade of D, as the Relative Value Arbitrage category had an average return of 0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

American Beacon SSI Alternative Inc Inv has a trailing yield of 3.42%, which is above the 2.27% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

American Beacon SSI Alternative Inc Inv Grades

Year to date, the fund has returned 3.6%, 0.6 percentage points worse than the category, which translates into a grade of D. The fund has returned 6.5% over the past year (grade of D), 7.6% over the past three years (grade of B) and 4.5% per year over the past five years (grade of D) and 4.7% per year over the past 10 years (grade of D).

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