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American Beacon High Yield Bond Fund

Portfolio information as of March 31, 2014
  • Summary
  • Performance
  • Overview

Investment Objective

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

A WIDE-RANGING APPROACH TO FIXED INCOME

The Fund invests primarily in below investment-grade debt obligations, domestic and foreign. By emphasizing below investment-grade debt securities, the Fund seeks to offer shareholders a regular stream of high income as well as capital appreciation over time. High yield (or “junk”) bonds have below investment-grade ratings because the companies issuing them may be:

  • Small in size

  • Young in years

  • Leveraged financially

  • Former “blue chip” companies that have encountered financial difficulties

BANKING ON FLEXIBILITY

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

  • Franklin Advisers: Invests in generally more conservative/higher quality bonds than the other managers; uses bottom-up research focus with a three- to five-year time frame.

  • Logan Circle Partners: Typically overweights CCC-rated bonds and consequently has a higher yielding portfolio.

  • PENN Capital Management: Bottom-up research focuses on improving financial metrics in concert with analyzing liquidity issues; assigns an internal credit rating to each security.

Total Fund Assets

$208.7 Million  

Sub-Advisors (%)

Franklin Advisers, Inc. 33.5
PENN Capital Management Company, Inc. 33.3
Logan Circle Partners, L.P. 33.2

 



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. 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. 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. 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. 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 High Yield Bond Fund are service marks of American Beacon Advisors, Inc.