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American Beacon Balanced Fund

Portfolio information as of September 30, 2014
  • Summary
  • Performance
  • Overview

Investment Objective

A multi-manager Fund seeking income and capital appreciation primarily through investments in U.S. stocks and bonds.

EQUITY DIVERSIFICATION WITH THE STABILITY OF BONDS

The Fund invests in a combination of stocks and bonds, with 50% to 70% of the Fund’s assets allocated to stocks and 30% to 50% to bonds.

  • Bottom-up equity portfolio construction that is well diversified at the security, industry and stock level.

  • Investment-grade fixed-income portfolio seeks to preserve the natural advantage of bonds, which promotes stability of the Fund.

A TEAM OF MANAGERS

The Fund’s three complementary equity managers pursue a value style of investing:

  • Barrow: Uses bottom-up analysis, seeking P/E and P/B ratios below the market and dividend yield above the market.

  • Brandywine: Seeks companies that are substantially undervalued, especially dividend-paying companies.

  • H&W: Seeks companies with sustainable cash flows and strong balance sheets, undervalued relative to tangible assets and long-term normal earnings power.

The Fund’s three complementary fixed-income managers invest in investment-grade debt securities:

  • Barrow: Seeks to "out-yield" the market with undervalued or mispriced securities and sectors.

  • Brandywine Global: Concentrates on top-down analysis of macroeconomics to find attractive valuations.

  • American Beacon Advisors: Diversified sector rotator, uncovering differences between similarly rated issuers to capture relative value opportunities.

Total Fund Assets

$1.0 Billion  

Sub-Advisors (%)

Barrow, Hanley, Mewhinney & Strauss, LLC 33.5
Brandywine Global Investment Management, LLC 33.1
Hotchkis and Wiley Capital Management, LLC 20.1
American Beacon Advisors, Inc.* 13.3

*American Beacon Advisors manages directly a portion of the Fund and allocates the remaining assets to sub-advisors.

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*For investment professional use only. Login required.


Investing in fixed-income securities entails interest rate risk, which is the risk that fixed-income securities will decrease in value with increases in market interest rates. The Fund may invest in futures contracts, which are a type of derivative investment. Investing in derivatives could result in losing more than the amount invested. Investing in foreign securities entails additional risk not associated with domestic securities, such as currency fluctuations, economic and political instability and differences in accounting standards. The Fund invests in small and/or mid-sized companies, which involves additional risks such as limited liquidity and greater volatility than larger companies. The intrinsic value of stocks selected for the Fund may never be realized by the market, and the prices of value stocks may go down. While investing in value stocks may limit downside risk over time, the Fund may produce more modest gains than riskier stock funds as a trade-off for this potentially lower risk. Credit risk is the risk that the issuer of a bond will fail to make timely payment of interest or principal; and the decline in an issuer's credit rating can cause the price of its bonds to go down. Please see the prospectus for a complete discussion of the Fund’s risks. There can be no assurances that the investment objectives of this Fund will be met.

For a prospectus containing more information, including expenses, click here. Read it carefully before you invest or send money. Past performance is no guarantee of future results.

American Beacon Funds and American Beacon Balanced Fund are service marks of American Beacon Advisors, Inc.