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American Beacon CRESCENT SHORT DURATION HIGH INCOME fund

Portfolio information as of March 31, 2019
  • Summary
  • Performance
  • Overview

Investment Objective

The Fund’s investment objective is high current income with capital appreciation as a secondary objective.

STRATEGICALLY MANAGED,
TACTICALLY ALLOCATED

Crescent Capital Group LP, the Fund’s sub-advisor, is a boutique institutional investment firm focused on below investment-grade credit markets. The firm has experience managing debt investments through an entire credit and multiple market cycles while focusing on principal preservation, risk mitigation, and current income.

Firm inception: 1991

Portfolio Managers:

  • John Fekete, Managing Director;
    industry since 1994
  • Conrad Chen, Managing Director;
    industry since 1996
  • Wayne Hosang, Managing Director;
    industry since 1993

A CREDIT-INTENSIVE RESEARCH PROCESS

Crescent uses a top-down approach to strategically allocate across fixed and floating rate, secured and unsecured, and public and private credit investments. In order to find securities with superior credit characteristics, the firm conducts disciplined credit research on each issuer. Crescent’s strategic approach to high-yield investment may allow investors to reduce the need to re-allocate among dedicated bank loan and high-yield strategies when market conditions change.

The goal of the Fund is to offer a high level of current income regardless of the overall credit or interest rate environment by investing in:

  • Senior Bank Loans – (Floating Rate)
  • High-Yield Bonds – (Fixed Rate)
  • Private Debt Investments
    – (Floating and Fixed Rate)

Total Fund Assets

$89.5 Million  

Sub-Advisor (%)

Crescent Capital Group LP 100%

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The Fund’s investments in high yield securities, including loans, restricted securities and floating rate securities, are subject to greater levels of credit, interest rate, market and liquidity risks than investment-grade securities. Investing in foreign securities may involve heightened risk due to currency fluctuations and economic and political risks. 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 is a registered service mark of American Beacon Advisors, Inc. American Beacon Funds and American Beacon Crescent Short Duration High Income Fund are service marks of American Beacon Advisors, Inc.

TOTAL RETURNS

Share Class Inception Date CUSIP Symbol NAV QTR YTD 1 Year 3 Year* 5 Year* 10 Year /
Since
Inception*
Institutional10/01/2014024525545ACHIX9.254.914.913.675.40 -3.28
Investor10/01/2014024525537ACHPX9.254.714.713.144.98 -2.89
Y10/01/2014024525552ACHYX9.244.894.893.575.25 -3.16
A (without max sales charge)10/01/2014024525578ACHAX9.234.814.813.084.91 -2.81
A (with max sales charge)10/01/2014024525578ACHAX9.232.172.170.514.02 -2.22
C (without max sales charge)10/01/2014024525560ACHCX9.244.494.492.444.14 -2.07
C (with max sales charge)10/01/2014024525560ACHCX9.243.493.491.444.14 -2.07
BenchmarkQTRYTD1 Year3 Year5 Year10 Year /
Since
Inception*
ICE BofAML US High-Yield Cash Pay BB-B 1-5 Yr 5.45 5.45 6.03 7.18 - 4.40

 

Expense Ratios

Share ClassGrossNet1
Institutional 1.08 0.86
Investor 1.40 1.24
Y 1.15 0.96
A 1.47 1.26
C 2.22 2.01

 

SEC 30-Day Yield

Share ClassActualUnsubsidized2
Institutional 4.91 4.73
Investor 4.51 4.34
Y 4.81 4.66
A 4.39 4.31
C 3.76 3.66

Performance shown is historical and is not 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.

Net asset value (NAV) is the value of one share of the portfolio excluding any sales charges.
*Annualized. See the performance notes on the next page for more information.

1The net expense ratio may reflect fees and expenses that American Beacon Advisors has contractually agreed to reduce and/or reimburse through May 31, 2019.

2The SEC 30-day yield is shown with (Actual) and without (Unsubsidized) the effect of any waivers/reimbursements during the period.

Important Information: All investing involves risk, including possible loss of principal. Indexes are unmanaged and one cannot invest directly in an index.

A portion of fees charged to each Class of the Fund has been waived since inception. Performance prior to waiving fees was lower than actual returns shown since inception. Specific information about any Fund may be found at americanbeaconfunds.com or in the prospectus.

The The ICE BofAML 1-5 Year BB-B Cash Pay High Yield Index is an unmanaged index that generally tracks the performance of BB-B rated U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market with maturities of one to five years.

American Beacon Funds and American Beacon Crescent Short Duration High Income Fund are service marks of American Beacon Advisors, Inc.


Sector Weightings (%)

Communications 19.6
Consumer Non-Cyclical 18.8
Financial 13.9
Consumer Cyclical 12.8
Industrial 12.2
Technology 9.0
Energy 7.8
Basic Materials 4.0
Utilities 2.0

Excludes cash.

Portfolio Statistics

Effective Maturity (years) 4.40
Effective Duration (years) 1.80
3-Year Standard Deviation 3.20

Top 10 Holdings (%)

HCA, Inc., 5.875%, Due 5/1/23 1.8
Sprint Corp., 7.250%, Due 9/15/21 1.3
Navient Corp., 5.875%, Due 3/25/21 1.2
Cablevision Systems Corp., 5.875%, Due 9/15/22 1.1
CCO Holdings LLC / CCO Holdings Capital Corp., 5.375%, Due 5/1/25 1.1
Sirius XM Radio, Inc., 3.875%, Due 8/1/22 1.0
Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu, 5.125%, Due 7/15/23 1.0
Talen Energy Supply LLC, 9.500%, Due 7/15/22 1.0
Hertz Corp., 5.875%, Due 10/15/20 1.0
Dell International LLC / EMC Corp., 7.125%, Due 6/15/24 1.0
Total Fund Holdings 479

Maturity Distribution

0 to 1 Years 2.5
1 to 3 Years 16.1
3 to 5 Years 46.1
5 to 7 Years 31.0
7 to 10 Years 4.4


Duration is a measure of price sensitivity relative to changes in interest rates.

S&P credit ratings for long-term obligations (or issuers thereof) are AAA, AA, A, BBB, BB, B, CCC, CC, C and D in decreasing order. For example, obligations rated AAA are judged to be of the highest quality, BBB to be of medium grade, CCC are judged to be speculative and obligations rated D are in default. Obligations rated in one of the four highest categories are considered to be investment grade while all other ratings are considered non-investment grade.

This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor's. Reproduction and distribution of third-party content in any form is prohibited except with the prior written permission of the related third party. Third-party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. THIRD-PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD-PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes and should not be relied on as investment advice.

American Beacon Funds and American Beacon Crescent Short Duration High Income Fund are service marks of American Beacon Advisors, Inc.