American Capital Agency Corp. (Nasdaq: AGNC) is a mortgage REIT that invests primarily in agency securities for which the principal and interest payments are guaranteed by
- a U.S. Government agency (such as the Government National Mortgage Association, or GNMA), or
- a U.S. Government-sponsored enterprise (such as the Federal National Mortgage Association, or FNMA, and the Federal Home Loan Mortgage Corporation, or FHLMC).
We may also invest in other assets reasonably related to agency securities and up to 10% of our assets in AAA non-agency and commercial mortgage-backed securities (collectively referred to as "AAA non-agency securities").
The principal objective of AGNC is to preserve our net asset value (also referred to as “net book value”, “NAV” and “stockholders’ equity”) while generating attractive risk-adjusted returns for distribution to our stockholders through regular monthly dividends from the combination of our net interest income and net realized gains and losses on our investments and hedging activities. We fund our investments primarily through short-term borrowings structured as repurchase agreements.
Our Corporate Structure
We qualify as a real estate investment trust, or REIT, for federal income tax purposes and elect to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. We generally are not subject to federal taxes on our taxable income to the extent that we annually distribute all of our taxable income to stockholders and maintain our intended qualification as a REIT.
American Capital Agency is externally managed and advised by American Capital AGNC Management, LLC, an indirect subsidiary of a wholly-owned portfolio company of American Capital, Ltd. (Nasdaq: ACAS) a publicly traded private equity firm and global asset manager.
American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages $23 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $81 billion of total assets under management (including levered assets). From its eight offices in the U.S., Europe and Asia, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $600 million.
American Capital has developed an institutionalized approach to its global alternative asset management business, supported by a fully-integrated organization and infrastructure. Through the administrative services agreement, our Manager has access to American Capital’s employees, infrastructure, business relationships, management expertise and capital raising capabilities, including its extensive financial reporting operations, dedicated equity and debt capital markets fund raising teams, business development and legal teams. To learn more about American Capital, please visit www.AmericanCapital.com.