American Beacon SiM High Yield Opportunities’ Y share class has dropped 20.6% from the start of the sell-off on Feb. 20, 2020, through March 27, 2020. The strategy has been among the worst performers in the high-yield bond Morningstar Category, suffering greater losses than 95% of distinct peers. Its heavy concentration in industries affected by the COVID-19 pandemic and oil price plunge has contributed to the fund’s underperformance. The portfolio contained significant overweightings to the energy, shipping, and gaming industries, all of which have experienced worse performance in the sell-off than the overall junk bond market.
Will SHOIX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable SHOIX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the SHOIX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of SHOIX’s parent organization’s priorities and whether they’re in line with investors’ interests.