The Fund maintains a relatively short weighted average duration of one to three years. This policy is intended to lessen the Fund's sensitivity to changes in interest rates, By emphasizing investment grade securities, the Fund seeks to provide shareholders with a regular stream of income, while minimizing principal volatility.
American Beacon Advisors, Inc. utilizes a top-down approach, analyzing macroeconomic data to anticipate economic momentum shifts, inflationary trends, the shape of the yield curve, and Federal Reserve policy. American Beacon Advisors, Inc. strives to increase returns by actively managing the duration and quality of the porfolio, consistent with historical relationships among economic growth, inflation and the direction of interest rates.
The Fund typically invests in a diversified mix of debt securities, including obligations of the U.S. Government, its agencies and instrumentalities; corporate bonds, notes and debentures; certificates of deposit; and mortgage-backed securities.
At the time of purchase, all securities are rated in one of the four highest rating categories or, if unrated, deemed to be of compatible quality by American Beacon. |