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American Beacon High Yield Bond Fund

Portfolio information as of December 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

$215.3 Million  

Sub-Advisors (%)

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

 



Investments in high yield 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. Investing in small- and medium-capitalization stocks may involve greater volatility and lower liquidity than larger company stocks. 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.