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American Beacon SiM High Yield Opportunities Fund

Portfolio information as of December 31, 2013
  • Summary
  • Performance
  • Overview

Investment Objective

The Fund’s investment objective is to seek high current income and, secondarily, capital appreciation.

HIGH YIELD MARKET VETERANS

Strategic Income Management, LLC (SiM), the Fund’s sub-advisor, is an independent employee-owned firm, specializing in high yield bond and asset allocation strategies.

  • Gary Pokrzywinski, CFA, Chief Investment Officer, Portfolio Manager, 26 years experience; managed the Principal High Yield Mutual Fund from its inception in April 1998 to May 2009
  • Brian Placzek, CFA, Director of Research — High Yield, 26 years experience

FOCUS ON INDUSTRIES

The Fund has a long-term focus, centered on multi-year secular themes. In selecting investments for the Fund, SiM combines different aspects of top-down and bottom-up analysis.

  • SiM believes understanding industry dynamics is critical to their success.
  • SiM uses a defined process to evaluate out-of-favor sectors and industries. Historically, they have found the better quality company in the out-of-favor sector offers the best risk/reward value.
  • The Fund may hold non-traditional high yield investments and investments across the entire capital structure of a company.

HIGH YIELD OUTPERFORMS

Over the past decade, high yield bonds have outperformed both stocks and investment-grade bonds, U.S. Treasuries and mortgages.

Sub-Advisor (%)

Strategic Income Management, LLC 100.0

 



This Fund typically invests in a variety of domestic and foreign high-yield, high risk securities. 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. These risks are enhanced through the use of derivative securities, foreign and emerging markets securities. Please see the prospectus for a complete discussion of the Fund’s risks. There can be no assurances that the investment objectives of the Fund will be met.

American Beacon Funds and American Beacon SiM High Yield Opportunities Fund are service marks of American Beacon Advisors, Inc.