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American Beacon Treasury Inflation Protected Securities Fund

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

Investment Objective

The Fund seeks inflation protection and income primarily through investments in Treasury Inflation-Protected Securities (TIPS) issued by the U.S. Treasury Department and backed by the full faith and credit of the U.S. government.

PROTECTION AGAINST INFLATION

Unlike many other funds in this class, the Fund invests only in TIPS, in order to provide inflation protection without exposure to unnecessary risks associated with other instruments.

By benchmarking against the lower duration Barclays Capital 1-10 Year U.S. TIPS Index, the Fund expects to be less sensitive to changes in real interest rates.

banking on flexibility

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

  • NISA Investment Advisors:
    - Keeps portfolio duration neutral to the
    benchmark
    - Establishes yield curve strategy
    - Focuses on adding consistent, small
    increments of value

  • Standish Mellon Asset Management:
    - Keeps portfolio duration within 0.75 years
    relative to the benchmark
    - Top-down research drives duration and yield
    curve targets

Total Fund Assets

$245.5 Million  

Sub-Advisors (%)

NISA Investment Advisors, LLC 50.3
Standish Mellon Asset Management Co. LLC 49.7

 



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. 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. In a period of sustained deflation, the inflation-indexed securities may not pay any income and may suffer a loss. A security backed by the U.S. Treasury is guaranteed only as to the timely payment of interest and principal when held to maturity. The market prices for such securities are not guaranteed and will fluctuate. They are also subject to credit risk and interest rate risk. 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 Treasury Inflation Protected Securities Fund are service marks of American Beacon Advisors, Inc.