American Beacon High Yield Bond Fund

Fund information as of December 31, 2009


Fund Overview
Total Fund Assets: $354.5 Million
  Institutional Class   Investor Class    
           
Inception Date 12/29/00   3/1/02    
Fund NAV $8.61   $8.62    
CUSIP 02368A489   02368A455    
Trading Symbol AYBFX   AHYPX    
 
Fund Classes
 
Institutional Class shares are for those who make the decisions about where your company's pension funds or corporate cash will be invested or for others with at least $250,000 to invest.
Investor Class shares are offered to individual investors, retirement accounts, plan sponsors, discount brokers or other organizations.
 
Investment Sub-Advisors
Logan Circle Partners, L.P. 50.0%
Franklin Advisers, Inc. 50.0%
 
Expense Ratios
 
  Institutional Class   Investor Class    
           
Gross Expense Ratio 0.86%   1.11%    
Net Expense Ratio1 0.85%   1.10%    
           
1The net expense ratio is net of acquired fund fees and expenses that the Fund incurred indirectly as a result of investment in certain pooled investment vehicles.
 
Investment Objective

A Fund seeking high current income and capital appreciation through investments in below investment grade-debt obligations.

 
Investment Style

The Fund invests in domestic and foreign high yield bonds. High yield issuers are generally those which have below investment grade ratings because they are relatively small in size, relatively young in years, relatively leveraged financially (perhaps borrowing heavily to finance expansion or due to a leveraged buyout), or formerly “blue chip” companies that have encountered some financial difficulties. These types of securities are commonly referred to as "junk bonds".

The Fund’s weighted average maturity of debt securities is generally expected to be from six to eight years. By emphasizing below investment grade debt securities, the Fund seeks to offer shareholders a regular stream of high income, while providing capital appreciation over time.

In selecting investments, the sub-advisors rely heavily on internal research and credit analysis. The investment advisors will adjust the Fund’s overall credit rating and average maturity based on its judgment of the economic climate, industry dynamics, and values in the high yield market.

 
High Yield Bond Fund Total Returns
 
QTR
 
YTD
 
1 YR
 
3 YR*
 
5 YR*
 
10 YR*
 
Since Inception*
                           
Institutional Class 5.85   47.88   47.88   3.24   4.29   N/A   7.18
Investor Class 5.90   47.67   47.67   2.99   4.06   N/A   6.94
                           
Lipper High Current Yield Funds Index** 6.29   58.89   58.89   6.15   6.56   7.09   8.63
JP Morgan Global High-Yield Index *** 5.85   49.49   49.49   2.80   4.27   4.13   5.79
 

Performance shown is historical and may not be indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted.To obtain performance as of the most recent month end, click here. Please note that the recent market performance has helped to produce short-term returns that are not typical and may not continue in the future.

 
Lipper Rankings
 
Category: High Current Yield Funds
  1YR   3YR   5YR   10YR
# of funds in category 459   391   341   N/A
               
Institutional Class 223   237   222   N/A
Investor Class 225   265   252   N/A
 
Lipper Quartile
 
Institutional Class 2nd   3rd   3rd   N/A
Investor Class 2nd   3rd   3rd   N/A
 
Lipper is an independent rating service that ranks mutual funds in various categories by making comparative calculations using total returns.
 
Sector Weightings
     
Service   24.3%
Manufacturing   20.4%
Cable/Media   12.1%
Energy   12.0%
Finance   8.4%
Other Corporate   6.5%
Utility   5.7%
Consumer   4.8%
Telecommunication Services   4.1%
Transportation   1.6%
Mortgage   0.1%
 
Credit Quality
 
A   1.0%
BBB   3.6%
BB   28.5%
B   46.0%
CCC   19.2%
C   0.5%
Below C   0.7%
Not Rated   0.5%
 
Asset Allocation
 
     
Fixed Income   94.3%
Cash Equivalents   5.2%
Convertibles Obligation   0.4%
Equity   0.1%
 
Portfolio Statistics
     
Average Credit Quality   BB-
Weighted Average Life   5.7
Weighted Average Duration   4.0
Weighted Average Coupon (%)   8.6
 
 
Maturity Distribution
     
0 to 1 Year   5.9%
1 to 3 Years   8.8%
3 to 5 Years   24.0%
5 to 7 Years   36.8%
7 to 10 Years   21.6%
10+ Years   2.9%
 
Top Ten Holdings (%)
PDF View All Holdings
 
HCA, Inc., 9.625%, Due 11/15/2016 1.1%
Harrah's Operating Co., Inc., 11.250%, Due 6/1/2017 1.1%
Intelsat Jackson Holdings Ltd., 11.250%, Due 6/15/2016 1.0%
Chesapeake Energy Corp., 6.625%, Due 1/15/2016 1.0%
CCH II Holdings LLC, 13.500%, Due 11/30/2016 0.9%
Ford Motor Credit Co. LLC, 7.500%, Due 8/1/2012 0.9%
NRG Energy, Inc., 7.375%, Due 2/1/2016 0.9%
Texas Competitive Electric Holdings Co. LLC, 10.250%, Due 11/1/2015 0.9%
Ford Motor Credit Co. LLC, 9.875%, Due 8/10/2011 0.9%
JBS USA LLC, 11.625%, Due 5/1/2014 0.8%
 
Total Fund Holdings: 308

You should consider the investment objectives, risks, fees and expenses of any mutual fund before investing. This and other information is available in the Fund's prospectus. Please read the prospectus carefully before investing.

IMPORTANT INFORMATION:
* Annualized.
** Lipper High Current Yield Funds. Lipper High Current Yield Funds Index tracks the results of the 30 largest mutual funds in the Lipper High Current Yield Funds category. Lipper is an independent mutual fund research and ranking service.
*** JPMorgan Global High-Yield Index. The JPMorgan Global-High Yield Index is an unmanaged index of fixed income securities of domestic and foreign issuers with a maximum credit rating of BB+ or Ba1. Issues must be publicly registered or issued under Rule 144A under the Securities Act of 1933, with a minimum size of $75 million (par amount). A maximum of two issues per issuer are included in the JPMorgan Global High-Yield Index. Convertible bonds, preferred stock, and floating-rate bonds are excluded from the JPMorgan Global High-Yield Index.

Investing in high yield securities involves additional risks when compared to investing in investment grade securities. These include a greater risk of default or bankruptcy and an increased sensitivity to financial difficulties or changes in interest rates. Investing in debt securities entails interest rate risk which is the risk that debt securities will decrease in value with increases in market interest rates.

Performance shown prior to the 3/1/02 inception of the Investor Class is that of the Institutional Class. The returns have not been adjusted for any difference between the fees and expenses of the Investor Class and the historical fees and expenses of the Institutional Class. Because the Institutional Class had lower expenses, its performance was better than the Investor Class would have realized during the same period. A portion of the fees charged to the Institutional Class of the Fund was waived. Performance prior to waiving fees was lower than the actual returns shown for periods through 2004.

The four highest Moody’s ratings for long-term obligations (or issuers thereof) are Aaa, Aa, A and Baa. Obligations rated Aaa are judged to be of the highest quality, with minimal credit risk. Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. Obligations rated A are considered upper-medium grade and are subject to low credit risk. Obligations rated Baa are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics. Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.

 

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