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American Beacon Flexible Bond Fund

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

Investment Objective

The Fund seeks to provide a positive total return regardless of market conditions over a full market cycle.


The Fund is sub-advised by three complementary fixed-income managers:

  • Brandywine Global: Invests long in markets with the highest real yields, short in markets with the lowest real yields.

  • GAM: Seeks inefficiencies and mispriced securities in the global fixed-income and currency markets.

  • PIMCO: Seeks an absolute-return strategy without the constraints of a benchmark or significant sector or instrument.


The Fund allocates investments across a wide
range of global investment opportunities. This
flexibility includes:

  • Investing in a number of geographic regions or
    countries, including emerging markets.

  • Allocating to fixed-income instruments without
    restrictions on their credit quality, although high
    yield bonds are limited to 35% of the net

  • Using foreign currencies or currency derivative
    instruments and other derivative instruments.

Total Fund Assets

$267.8 Million  

Sub-Advisors (%)

Pacific Investment Management Company LLC 34.8
Brandywine Global Investment Management, LLC 32.7
GAM International Management Ltd. 32.5

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Because the Fund has a flexible approach to investing, the risks of the Fund are likewise varied. The primary risks fall into one of several broad categories including high yield securities risk, credit risk, foreign investment risk, derivatives risk, interest rate risk and non-diversification risk. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when more advantageous. Investing in derivatives could result in losing more than the amount invested. Diversification does not ensure against loss. 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. Bonds and bond funds with longer durations tend to be more sensitive and more volatile than securities with shorter durations; bond prices generally fall as interest rates rise. 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 Flexible Bond Fund are service marks of American Beacon Advisors, Inc.