American Beacon Advisors expanded its ETF lineup with the launch of the American Beacon Aberdeen Municipal High Income ETF (NYSE:AMHI), an actively managed fund designed to provide investors with a high level of current income exempt from federal income tax. The fund, launched on Wednesday, will be sub-advised by Aberdeen Investments and aims to capitalize on opportunities in the municipal bond market through active security selection and portfolio construction.
The launch comes as investors continue to seek tax-efficient income solutions amid an evolving interest-rate environment. AMHI will invest in a diversified portfolio of municipal bonds using a research-driven process focused on identifying mispriced securities and relative-value opportunities across sectors and maturities. The strategy emphasizes high-conviction ideas, resulting in a concentrated portfolio that targets areas where Aberdeen believes it has the strongest expertise while avoiding crowded segments offering less attractive value.
Key Features of AMHI
- Structure: Actively managed
- Expense Ratio: 0.55%
- Objective: Provide a high level of current income exempt from federal income tax
- Investment approach: Research-driven municipal bond selection focused on mispriced securities and relative-value opportunities
- Portfolio construction: Concentrated portfolio built around the team’s highest-conviction ideas
- Market focus: Opportunities across municipal bond sectors and maturities
- Risk management: Emphasis on downside protection and quality-focused security selection
- Credit profile: Tilt toward the higher-quality segment of the high-yield municipal bond universe
- Avoids: The most distressed and volatile municipal issuers
The ETF further strengthens a long-standing partnership between American Beacon and Aberdeen Investments.
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