The American Beacon Ionic Inflation Protection ETF Places Inflation Strategies at the Forefront During a Stubborn Inflationary Era
American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, announced that it has assumed management of the Ionic Inflation Protection ETF (“CPII”) with Ionic Capital Management LLC (“Ionic”) continuing involvement in a sub-advisory role. Effective April 14, 2025, American Beacon will serve as the investment advisor and Ionic will serve as the sub-advisor to the newly adopted fund: American Beacon Ionic Inflation Protection ETF (the “Fund”) (Ticker: CPII).
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The Fund’s adoption marks the third ETF added to American Beacon’s product suite in less than two years.
Greg Stumm, president and CEO of Resolute Investment Managers and American Beacon, said, “We have always sought to partner with asset managers who provide unique and differentiated solutions, and Ionic is no exception. We see significant opportunities in emerging solutions within the U.S. wealth market and, given Ionic’s proven track record, innovative approaches like CPII align perfectly with our commitment to expand and enhance our offerings.”
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The Fund, managed by Ionic portfolio managers Bart Baum, Daniel Stone and Doug Fincher, employs an inflation protection strategy using inflation swaps, options on swaps (swaptions) and U.S. Treasury Inflation-Protected Securities (TIPS). The strategy offers investors an opportunity to benefit from elevated inflation and rising inflation expectations, while also serving as an alternative to traditional fixed-income allocations or as a diversifier within an equity portfolio.
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Doug Fincher said, “Despite the Federal Reserve’s recent efforts, inflation isn’t going away – inflation levels are stubborn, and economic policies are shifting under the Trump administration. Given the preceding decades of muted price increases, many investors are not conditioned to consider inflation as part of their investment strategy. While TIPS can protect investors against inflation, TIPS do not provide investors with the opportunity to profit from inflation. This is the solution that Ionic, alongside American Beacon, is providing to the retail market with CPII – a means to potentially profit directly from inflation.”
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Source – PR Newswire
