UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-4984
AMERICAN BEACON FUNDS
(Exact name of registrant as specified in charter)
4151 Amon Carter Boulevard, MD 2450
Fort Worth, Texas 76155
(Address of principal executive offices)-(Zip code)
GENE L. NEEDLES, JR., PRESIDENT
4151 Amon Carter Boulevard, MD 2450
Fort Worth, Texas 76155
(Name and address of agent for service)
Registrant's telephone number, including area code: (817) 391-6100
Date of fiscal year end: October 31, 2010
Date of reporting period: April 30, 2010
ITEM 1. REPORTS TO STOCKHOLDERS.
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About American Beacon Advisors
Since 1986, American Beacon Advisors has offered a variety of products and investment advisory services to numerous institutional and retail clients, including a variety of mutual funds, corporate cash management, and separate account management.
Our clients include defined benefit plans, defined contribution plans, foundations, endowments, corporations, financial planners, and other institutional investors. With American Beacon Advisors, you can put the experience of a multi-billion dollar asset management firm to work for your company.
Contents
Message from American Beacon | 1 | |||
Market and Performance Overview | 2 | |||
Schedule of Investments | 6 | |||
Additional Information | Back Cover |
Any opinions herein, including forecasts, reflect our judgment as of the end of the reporting period and are subject to change. Each advisor’s strategies and the Fund’s portfolio composition will change depending on economic and market conditions. This report is not a complete analysis of market conditions and therefore, should not be relied upon as investment advice. Although economic and market information has been compiled from reliable sources, American Beacon Advisors, Inc. makes no representation as to the completeness or accuracy of the statements contained herein. |
American Beacon Funds | April 30, 2010 |
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Fellow Shareholders,
Over the past six months, one universal theme seems to have emerged: while sudden and significant volatility may characterize the new economic world order, it doesn’t mean investors can’t benefit. Opportunity abounds for those who know how to capitalize on it.
Fortunately, this theme also underlies our investment philosophy at American Beacon:
With portfolios invested for the new economic reality—and conservatively managed for the longer term—we believe investors are better positioned to ride out the inevitable economic storms, whenever and wherever they occur.
It’s a philosophy that has served our shareholders well. It also explains how, in the face of continued weakness in the U.S. job and housing markets and mounting sovereign debt worries in Europe, our domestic equity-exposed funds could generate such respectable returns for the six-month period ended April 30, 2010. The American Beacon Large Cap Value Fund (Institutional Class), for example, generated a 16.43% return during this reporting period. Please note that the recent growth rate in the stock market has produced short-term returns that are not typical and may not continue in the future.
As global volatility has become the new norm, our focus at American Beacon remains trained on anticipating opportunities and meeting the challenges investors face today and will likely face tomorrow. This is what drives the composition of our fund line-up and the development of our new offerings in the last year.
It’s also a reflection of our commitment to you, a commitment we summarize as: Oversight 360°. Ours is a continuous commitment to cast a watchful and analytical eye over all the factors that influence our fellow shareholders’ investments.
As you review the enclosed market overview, portfolio listings, and detailed financial data, please know that we welcome the opportunity to serve your financial needs. To obtain further details about the American Beacon Funds family or to access your account information, please visit our website at www.americanbeaconfunds.com.
Thank you for your continued investment in the American Beacon Funds and know that we remain dedicated to offering you and your advisor the level of service and broad range of well-managed investment products you’ve come to expect from us.
Best Regards, | ||
![]() | ||
Gene L. Needles, Jr. | ||
President | ||
American Beacon Funds |
1
Domestic Equity Market Overview
April 30, 2010 (Unaudited)
In the face of continued weakness in the U.S. employment rate and the U.S. housing market and mounting sovereign debt worries abroad, the S&P 500 still managed to return an impressive 16.43% for the six months ended April 30, 2010. Buoyed by relatively healthy corporate earnings, the broader market performance reflected the economic optimism represented by: resilient personal spending on the part of the U.S. consumer; improved credit market conditions; and enhanced corporate efficiency. Still, corporate earnings remain below the long-term trend. Earnings still have room to grow, which bodes well for investors.
Another positive for investors comes from the fact that the retrenchment by Corporate America in the form of cost-cutting and improved operating efficiencies, which became apparent as 2009’s fourth quarter earnings season unfolded, is expected to continue providing added operating leverage. This was hardly an insignificant trend. During the fourth quarter, incremental pre-tax margins for companies in the S&P 500 Index were an astounding 64%, in other words, every $1 in incremental revenue gain resulted in $0.64 in additional pre-tax earnings. This improved corporate free cash flow put substantial cash reserves back onto balance sheets. That cash was expected to find its way into investors’ hands through increased dividends and/or share repurchases.
Despite flat income growth, the consumer resurfaced during the last six months, implying that there may have been an accompanying decline in the savings rate. Willingness of the consumer to spend was significant since consumer spending comprises two-thirds of the U.S. economy (based on GDP), making it a critical factor in gauging economic progress.
In addition to the consumer, other signs of economic expansion emerged since last October: productivity recovered, while inflation stayed in check, and the Fed remained accommodative. Cyclical sectors naturally performed well in this environment. Consumer Discretionary, Industrial, and Financial companies led the U.S. equity markets in returns, while Telecommunications, Energy, and Consumer Staples lagged. Value stocks also remained in favor, outpacing their growth counterparts across the market cap spectrum.
We continue to find compelling investment opportunities as the economic recovery builds momentum. Three core factors provide support for our optimism:
• | Corporate earnings and the U.S. economy are recovering from one of the deepest recessions since the Great Depression, which should amplify the magnitude of the equity market’s recovery. | ||
• | Companies have retrenched to such a level that modest increases in demand should be disproportionately accretive to earnings. | ||
• | The recovery of value stocks tends to carry on for several successive years following sizable market dislocations akin to 2008. |
With these dynamics underlying the domestic equity market, we feel there is some cause for continued investor optimism for the remainder of the year.
2
Performance Overview
American Beacon Large Cap Value FundSM
April 30, 2010 (Unaudited)
The Institutional Class of the Large Cap Value Fund returned 16.43% for the six months ended April 30, 2010, underperforming the Russell 1000® Value Index (“Index”) return of 17.77%, but outperforming the Lipper Large-Cap Value Funds Index return of 14.54%.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/10 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,6) | 16.43 | % | 42.97 | % | 2.74 | % | 5.95 | % | ||||||||
Y Class (1,2,6) | 16.37 | % | 42.90 | % | 2.73 | % | 5.94 | % | ||||||||
Investor Class(1,6) | 16.26 | % | 42.43 | % | 2.47 | % | 5.66 | % | ||||||||
Advisor Class(1,3,6) | 16.19 | % | 42.26 | % | 2.24 | % | 5.54 | % | ||||||||
Retirement Class (1,4,6) | 16.04 | % | 41.80 | % | 2.18 | % | 5.51 | % | ||||||||
AMR Class(1,6) | 16.67 | % | 43.31 | % | 3.02 | % | 6.23 | % | ||||||||
Lipper Large-Cap Value Funds Index (5) | 14.54 | % | 38.48 | % | 2.22 | % | 1.63 | % | ||||||||
Russell 1000 Value Index (5) | 17.77 | % | 42.28 | % | 1.93 | % | 3.48 | % |
* | Not annualized | |
1. | Please note that the recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Performance shown is historical and may not be indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. | |
2. | Fund performance for the one-year, five-year and ten-year periods represents the total returns achieved by the Institutional Class from 4/30/00 up to 8/3/09, the inception date of the Y Class, and the returns of the Y Class since its inception. Expenses of the Y Class are higher than those of the Institutional Class. As a result, total returns shown may be higher than they would have been had the Y Class been in existence since 4/30/00. | |
3. | Fund performance for the five-year and ten-year periods represents the total returns achieved by the Investor Class from 4/30/00 up to 6/1/05, the inception date of the Advisor Class, and the returns of the Advisor Class since its inception. Expenses of the Advisor Class are higher than those of the Investor Class. Therefore, total returns shown may be higher than they would have been had the Advisor Class been in existence since 4/30/00. A portion of the fees charged to the Advisor Class of the Fund was waived in 2005. Performance prior to waiving fees was lower than the actual returns shown for2005. | |
4. | Fund performance for the one-year, five-year and ten-year periods represents the total returns achieved by the Investor Class from 4/30/00 through 5/31/05 and the Advisor Class from 6/1/05 up to 5/1/09, the inception date of the Retirement Class, and the returns of the Retirement Class since its inception. Expenses of the Retirement Class are higher than those of the Advisor and Investor Classes. As a result, total returns shown may be higher than they would have been had the Retirement Class been in existence since 4/30/00. | |
5. | The Russell 1000 Value Index is an unmanaged index of those stocks in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values. Russell 1000® Value Index and Russell 1000 Index are registered trademarks of the Frank Russell Company. The Lipper Large-Cap Value Funds Index tracks the results of the 30 largest mutual funds in the Lipper Large-Cap Value Funds category. Lipper is an independent mutual fund research and ranking service. One cannot directly invest in an index. | |
6. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, Retirement, and AMR Class shares was 0.62%, 0.69%, 0.94%, 1.13%, 1.38%, and 0.37%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report. |
The Fund underperformed the Index entirely due to stock selection as sector allocation added value relative to the Index. The Fund’s holdings in the Consumer Discretionary, Materials, Telecommunication Services, and Health Care sectors detracted the most value relative to the Index. Companies in the Consumer Discretionary sector with the greatest impact to the Fund’s underperformance were CBS (up 36.6%), Time Warner Cable (up 44.5%), and Gap (up 16.7%) for the period the Fund owned the securities. In the Materials sector, E. I. du Pont de Nemours (up 25.2%), Dow Chemical (up 29.9%), and Air Products & Chemical (up 0.5%) for the period the Fund owned the securities were the largest detractors, as was AT&T (up 4.7% for the period the Fund owned the security) in the Telecommunication Services sector. In the Health Care se ctor, Baxter International (down 12.5%) and Eli Lilly (up 5.4% for the period the Fund owned the security) hurt relative performance most. Good stock selection in the Utilities sector, mostly in Constellation Energy Group (up 19.5%) and Public Service Enterprise Group (up 5.2%) for the period the Fund owned the securities, added value relative to the Index, but
3
Performance Overview
American Beacon Large Cap Value FundSM
April 30, 2010 (Unaudited)
not enough to offset the poor performance from the aforementioned sectors.
The Fund’s two times underweighting in Energy, the second worst performing sector in the Index, and an overweighting in Industrials, the second best performing sector in the Index, added the most value relative to the Index through sector allocation. The positive impact from the above mentioned sector exposures was somewhat offset by a two times overweight in Consumer Staples and an underweight in the Consumer Discretionary sector, the best performing sector in the Index, which detracted from relative performance.
The sub-advisors continue to invest in a broadly diversified portfolio of companies that they believe have attractive valuations and above-average earnings growth potential. This approach should allow the Fund to benefit over the longer term.
Top Ten Holdings
% of | ||||
Net Assets | ||||
ConocoPhillips | 3.3 | % | ||
International Business Machines Corp. | 3.0 | % | ||
JPMorgan Chase & Co. | 3.0 | % | ||
Bank of America Corp. | 2.6 | % | ||
Hewlett-Packard Co. | 1.8 | % | ||
Boeing Co. | 1.8 | % | ||
Wells Fargo & Co. | 1.7 | % | ||
Raytheon Co. | 1.6 | % | ||
PNC Financial Services Group, Inc. | 1.5 | % | ||
General Electric Co. | 1.5 | % |
Equity Sector Allocation
% of | ||||
Equities | ||||
Financials | 21.8 | % | ||
Information Technology | 14.5 | % | ||
Industrials | 14.3 | % | ||
Consumer Staples | 10.2 | % | ||
Health Care | 10.0 | % | ||
Energy | 9.9 | % | ||
Consumer Discretionary | 8.8 | % | ||
Utilities | 5.2 | % | ||
Materials | 3.0 | % | ||
Telecommunication Services | 2.3 | % |
See accompanying notes
4
Fund Expenses
American Beacon Large Cap Value FundSM
April 30, 2010 (Unaudited)
Fund Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, administrative service fees, distribution (12b-1) fees, and other Fund expenses. The examples below are intended to help you understand the ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from November 1, 2009 through April 30, 2010.
Actual Expenses
The “Actual” lines of the table provide information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. Shareholders of the Investor and Institutional Classes that invest in the Fund through an IRA may be subject to a custodial IRA fee of $12 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $12 higher.
Hypothetical Example for Comparison Purposes
The “Hypothetical” lines of the table provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed 5% per year rate of return before expenses (not the Fund’s actual return). You may compare the ongoing costs of investing in the Fund with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Shareholders of the Investor and Institutional Classes that invest in the Fund through an IRA may be subject to a custodial IRA fee of $12 that is typically deducted each December. If your account was subject to a cust odial IRA fee during the period, your costs would have been $12 higher.
You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs charged by the Fund. Similarly, the expense examples for other funds do not reflect any transaction costs charged by those funds, such as sales charges (loads), redemption fees or exchange fees. Therefore, the “Hypothetical” lines of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If you were subject to any transaction costs during the period, your costs would have been higher.
Expenses Paid | ||||||||||||
Beginning Account | Ending Account | During Period* | ||||||||||
Value 11/1/09 | Value 4/30/10 | 11/1/09-4/30/10 | ||||||||||
Institutional Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,164.27 | $ | 3.22 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.82 | $ | 3.01 | ||||||
(5% return before expenses) | ||||||||||||
Y Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,163.70 | $ | 3.81 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.27 | $ | 3.56 | ||||||
(5% return before expenses) | ||||||||||||
Investor Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,162.55 | $ | 5.15 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.03 | $ | 4.81 | ||||||
(5% return before expenses) | ||||||||||||
Advisor Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,161.94 | $ | 5.90 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.34 | $ | 5.51 | ||||||
(5% return before expenses) | ||||||||||||
Retirement Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,160.41 | $ | 7.34 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.00 | $ | 6.85 | ||||||
(5% return before expenses) | ||||||||||||
AMR Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,166.68 | $ | 1.88 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.06 | $ | 1.76 | ||||||
(5% return before expenses) |
* | Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.60%, 0.71%, 0.96%, 1.10%, 1.37% and 0.35% for the Institutional, Y, Investor, Advisor, Retirement and AMR Classes respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half-year period. |
5
American Beacon Large Cap Value FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
COMMON STOCKS - 95.88% | ||||||||
CONSUMER DISCRETIONARY - 8.44% | ||||||||
Auto Components - 0.64% | ||||||||
Gentex Corp. | 2,365,000 | $ | 50,824 | |||||
Hotels, Restaurants & Leisure - 1.78% | ||||||||
Carnival Corp. | 1,045,800 | 43,610 | ||||||
McDonald’s Corp. | 843,100 | 59,514 | ||||||
Wyndham Worldwide Corp. | 1,473,480 | 39,504 | ||||||
142,628 | ||||||||
Media - 2.15% | ||||||||
CBS Corp. | 1,208,300 | 19,587 | ||||||
Comcast Corp. | 671,100 | 12,650 | ||||||
Interpublic Group of Cos., Inc. ^ | 888,000 | 7,912 | ||||||
Time Warner Cable, Inc. | 196,300 | 11,042 | ||||||
Time Warner, Inc. | 1,944,000 | 64,307 | ||||||
Walt Disney Co. Ltd. | 1,108,200 | 40,826 | ||||||
Warner Music Group Corp. ^ | 2,322,000 | 15,906 | ||||||
172,230 | ||||||||
Multiline Retail - 1.70% | ||||||||
J.C. Penney Company, Inc. | 1,718,900 | 50,140 | ||||||
Target Corp. | 845,100 | 48,061 | ||||||
Wal-Mart Stores, Inc. | 711,860 | 38,191 | ||||||
136,392 | ||||||||
Specialty Retail - 1.41% | ||||||||
Gap, Inc. | 282,500 | 6,986 | ||||||
The Home Depot, Inc. | 2,732,167 | 96,309 | ||||||
Limited Brands, Inc. | 364,200 | 9,761 | ||||||
113,056 | ||||||||
Textiles & Apparel - 0.76% | ||||||||
Polo Ralph Lauren Corp. | 681,000 | 61,222 | ||||||
Total Consumer Discretionary | 676,352 | |||||||
CONSUMER STAPLES - 9.83% | ||||||||
Beverages - 1.97% | ||||||||
Coca-Cola Co. | 423,200 | 22,620 | ||||||
Diageo plc, ADR | 1,626,200 | 110,809 | ||||||
PepsiCo, Inc. | 378,300 | 24,673 | ||||||
158,102 | ||||||||
Food & Drug Retailing - 1.30% | ||||||||
CVS Caremark Corp. | 972,500 | 35,914 | ||||||
Safeway, Inc. | 2,272,900 | 53,641 | ||||||
Sysco Corp. | 475,740 | 15,005 | ||||||
104,560 | ||||||||
Food Products - 2.84% | ||||||||
ConAgra Foods, Inc. | 2,600,000 | 63,622 | ||||||
H.J. Heinz Co. | 1,166,000 | 54,650 | ||||||
Hershey Co. | 1,200,000 | 56,412 | ||||||
Kraft Foods, Inc. | 242,400 | 7,175 | ||||||
Unilever N.V. | 1,500,000 | 45,390 | ||||||
227,249 | ||||||||
Household Products - 0.32% | ||||||||
The Procter & Gamble Co. | 412,000 | 25,610 | ||||||
Personal Products - 0.69% | ||||||||
L’Oreal SA, ADR | 2,675,000 | 55,587 | ||||||
Tobacco - 2.71% | ||||||||
Altria Group, Inc. | 1,312,900 | 27,820 | ||||||
Imperial Tobacco Group plc, ADR | 1,394,100 | 79,450 | ||||||
Lorillard, Inc. | 102,100 | 8,001 | ||||||
Philip Morris International, Inc. | 2,079,700 | 102,072 | ||||||
217,343 | ||||||||
Total Consumer Staples | 788,451 | |||||||
ENERGY - 9.46% | ||||||||
Energy Equipment & Services - 0.77% | ||||||||
Transocean Ltd. ^ | 277,000 | 20,069 | ||||||
Weatherford International Ltd. ^ | 2,300,000 | 41,653 | ||||||
61,722 | ||||||||
Oil & Gas - 8.69% | ||||||||
BP plc, ADR | 2,323,400 | 121,165 | ||||||
Chevron Corp. | 1,095,562 | 89,223 | ||||||
ConocoPhillips | 4,530,596 | 268,166 | ||||||
Devon Energy Corp. | 223,500 | 15,048 | ||||||
Duke Energy Corp. | 890,900 | 14,949 | ||||||
Exxon Mobil Corp. | 1,137,300 | 77,166 | ||||||
Marathon Oil Corp. | 131,300 | 4,221 | ||||||
Occidental Petroleum Corp. | 774,400 | 68,658 | ||||||
Royal Dutch Shell plc, ADR | 622,700 | 37,786 | ||||||
696,382 | ||||||||
Total Energy | 758,104 | |||||||
FINANCIALS - 20.88% | ||||||||
Banks - 13.56% | ||||||||
Banco Santander S.A., ADR | 2,915,692 | 35,980 | ||||||
Bank of America Corp. | 11,627,290 | 207,315 | ||||||
Bank of New York Mellon Corp. | 822,900 | 25,617 | ||||||
Citigroup, Inc. ^ | 10,613,368 | 46,380 | ||||||
East West Bancorp Escrow ^ ‡ | 586,782 | 11,507 |
See accompanying notes
6
American Beacon Large Cap Value FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
East West Bancorp, Inc. | 1,638,200 | $ | 32,092 | |||||
Goldman Sachs Group, Inc. | 210,200 | 30,521 | ||||||
JPMorgan Chase & Co. | 5,621,098 | 239,346 | ||||||
KeyCorp | 745,774 | 6,727 | ||||||
M&T Bank Corp. | 590,000 | 51,537 | ||||||
PNC Financial Services Group, Inc. | 1,838,649 | 123,576 | ||||||
State Street Corp. | 1,348,300 | 58,651 | ||||||
SunTrust Banks, Inc. | 180,800 | 5,352 | ||||||
U.S. Bancorp | 1,046,260 | 28,008 | ||||||
Wells Fargo & Co. | 4,084,958 | 135,253 | ||||||
Zions Bancorporation | 1,728,000 | 49,645 | ||||||
1,087,507 | ||||||||
Diversified Financials - 3.64% | ||||||||
American Express Co. | 1,766,800 | 81,485 | ||||||
Capital One Financial Corp. | 1,419,200 | 61,607 | ||||||
Charles Schwab Corp. | 1,600,000 | 30,864 | ||||||
Mitsubishi UFJ Financial Group, Inc., ADR | 8,256,000 | 42,684 | ||||||
Morgan Stanley Dean Witter & Co. | 1,506,200 | 45,517 | ||||||
SLM Corp. ^ | 2,435,500 | 29,811 | ||||||
291,968 | ||||||||
Insurance - 3.68% | ||||||||
ACE Ltd. | 1,139,400 | 60,605 | ||||||
Allstate Corp. | 421,100 | 13,757 | ||||||
Genworth Financial, Inc. ^ | 920,100 | 15,200 | ||||||
Hartford Financial Services Group, Inc. | 1,075,750 | 30,734 | ||||||
Lincoln National Corp. | 1,032,100 | 31,572 | ||||||
MetLife, Inc. | 1,258,159 | 57,347 | ||||||
Prudential Financial, Inc. | 134,700 | 8,561 | ||||||
Travelers Cos., Inc. | 888,700 | 45,093 | ||||||
XL Capital Ltd. | 1,811,700 | 32,248 | ||||||
295,117 | ||||||||
Total Financials | 1,674,592 | |||||||
HEALTH CARE - 9.59% | ||||||||
Health Care Equipment & Supplies - 2.13% | ||||||||
Baxter International, Inc. | 2,259,700 | 106,703 | ||||||
Hospira, Inc. ^ | 1,143,000 | 61,482 | ||||||
Zimmer Holdings, Inc. ^ | 36,000 | 2,193 | ||||||
170,378 | ||||||||
Health Care Providers & Services - 1.61% | ||||||||
Cardinal Health, Inc. | 1,317,900 | 45,718 | ||||||
CIGNA Corp. | 1,656,200 | 53,098 | ||||||
WellPoint, Inc. ^ | 565,900 | 30,445 | ||||||
129,261 | ||||||||
Pharmaceuticals - 5.85% | ||||||||
Abbott Laboratories | 114,840 | 5,874 | ||||||
Amgen, Inc. ^ | 432,600 | 24,814 | ||||||
Bristol-Myers Squibb Co. | 4,170,200 | 105,464 | ||||||
Eli Lilly & Co. | 2,391,200 | 83,620 | ||||||
Johnson & Johnson | 1,109,200 | 71,322 | ||||||
Merck & Co., Inc. | 1,665,999 | 58,377 | ||||||
Pfizer, Inc. | 7,147,249 | 119,502 | ||||||
468,973 | ||||||||
Total Health Care | 768,612 | |||||||
INDUSTRIALS - 13.73% | ||||||||
Aerospace & Defense - 5.12% | ||||||||
Boeing Co. | 2,005,900 | 145,288 | ||||||
Lockheed Martin Corp. | 250,300 | 21,248 | ||||||
Northrop Grumman Corp. | 1,314,600 | 89,169 | ||||||
Raytheon Co. | 2,228,700 | 129,933 | ||||||
United Technologies Corp. | 336,900 | 25,251 | ||||||
410,889 | ||||||||
Air Freight & Couriers - 0.14% | ||||||||
FedEx Corp. | 120,400 | 10,837 | ||||||
Construction & Engineering - 0.28% | ||||||||
Shaw Group, Inc. ^ | 585,415 | 22,410 | ||||||
Industrial Conglomerates - 4.20% | ||||||||
3M Co. | 727,000 | 64,463 | ||||||
General Electric Co. | 6,443,400 | 121,522 | ||||||
Honeywell International, Inc. | 2,419,525 | 114,855 | ||||||
Textron, Inc. | 995,100 | 22,728 | ||||||
Tyco International Ltd. | 347,200 | 13,468 | ||||||
337,036 | ||||||||
Machinery - 3.99% | ||||||||
Caterpillar, Inc. | 358,600 | 24,417 | ||||||
Cummins, Inc. | 166,400 | 12,019 | ||||||
Deere & Co. | 1,039,000 | 62,153 | ||||||
Eaton Corp. | 355,000 | 27,392 | ||||||
Illinois Tool Works, Inc. | 689,700 | 35,243 | ||||||
ITT Industries, Inc. | 930,300 | 51,697 | ||||||
PACCAR, Inc. | 1,047,400 | 48,725 | ||||||
SPX Corp. | 834,000 | 58,280 | ||||||
319,926 | ||||||||
Total Industrials | 1,101,098 | |||||||
INFORMATION TECHNOLOGY - 13.89% | ||||||||
Computers & Peripherals - 7.25% | ||||||||
Apple Computer, Inc. ^ | 349,000 | 91,131 | ||||||
Dell, Inc. ^ | 1,696,500 | 27,449 |
See accompanying notes
7
American Beacon Large Cap Value FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
EMC Corp. ^ | 4,000,000 | $ | 76,040 | |||||
Hewlett-Packard Co. | 2,804,500 | 145,750 | ||||||
International Business Machines Corp. | 1,870,900 | 241,346 | ||||||
581,716 | ||||||||
Diversified Telecommunication Services - 0.68% | ||||||||
Nokia Corp., ADR ^ | 4,478,000 | 54,453 | ||||||
Electrical Equipment - 0.15% | ||||||||
Molex, Inc. — Class A | 618,150 | 11,745 | ||||||
Electronic Equipment & Instruments - 1.67% | ||||||||
Intel Corp. | 4,930,100 | 112,554 | ||||||
Tyco Electronics Ltd. | 666,100 | 21,395 | ||||||
133,949 | ||||||||
IT Consulting & Services - 0.05% | ||||||||
Accenture plc | 96,800 | 4,224 | ||||||
Semiconductor Equipment & Products - 0.61% | ||||||||
Texas Instruments, Inc. | 1,882,000 | 48,951 | ||||||
Software - 3.48% | ||||||||
Adobe Systems, Inc. ^ | 877,000 | 29,458 | ||||||
CA, Inc. | 1,175,703 | 26,818 | ||||||
Intuit, Inc. ^ | 1,422,000 | 51,420 | ||||||
Microsoft Corp. | 2,909,700 | 88,862 | ||||||
Oracle Corp. | 3,183,100 | 82,251 | ||||||
278,809 | ||||||||
Total Information Technology | 1,113,847 | |||||||
MATERIALS - 2.90% | ||||||||
Chemicals - 2.90% | ||||||||
Air Products & Chemicals, Inc. | 1,131,290 | 86,861 | ||||||
Dow Chemical Co. | 2,919,400 | 90,005 | ||||||
E. I. du Pont de Nemours & Co. | 1,086,700 | 43,294 | ||||||
PPG Industries, Inc. | 176,700 | 12,434 | ||||||
Total Materials | 232,594 | |||||||
TELECOMMUNICATION SERVICES - 2.16% | ||||||||
Diversified Telecommunication - 1.18% | ||||||||
Vodafone Group plc, ADR | 4,275,200 | 94,910 | ||||||
Diversified Telecommunication Services - 0.98% | ||||||||
AT&T, Inc. | 2,298,552 | 59,900 | ||||||
Verizon Communications, Inc. | 648,286 | 18,729 | ||||||
78,629 | ||||||||
Total Telecommunication Services | 173,539 | |||||||
UTILITIES - 5.00% | ||||||||
Electric Utilities - 3.58% | ||||||||
CenterPoint Energy, Inc. | 2,216,800 | 31,833 | ||||||
Dominion Resources, Inc. | 2,839,500 | 118,691 | ||||||
Edison International | 327,400 | 11,253 | ||||||
Entergy Corp. | 465,800 | 37,865 | ||||||
Exelon Corp. | 588,400 | 25,648 | ||||||
FPL Group, Inc. | 1,179,800 | 61,409 | ||||||
286,699 | ||||||||
Gas Utilities - 0.82% | ||||||||
Spectra Energy Corp. | 2,813,500 | 65,667 | ||||||
Multi-Utilities - 0.60% | ||||||||
Questar Corp. | 1,006,000 | 48,238 | ||||||
Total Utilities | 400,604 | |||||||
Total Common Stocks | 7,687,793 | |||||||
SHORT TERM INVESTMENTS - 3.78% | ||||||||
American Beacon U.S. Government Money Market Select Fund # | 60,000,000 | 60,000 | ||||||
JPMorgan U.S. Government Money Market Fund | 212,638,158 | 212,638 |
Par | ||||||||
Amount | ||||||||
U.S. Treasury, | ||||||||
0.14%, Due 6/17/2010 § | $ | 21,315 | 21,311 | |||||
0.14%, Due 7/15/2010 § | 9,104 | 9,101 | ||||||
Total Short Term Investments | 303,050 | |||||||
TOTAL INVESTMENTS 99.66% — (Cost $7,577,557) | 7,990,843 | |||||||
OTHER ASSETS, NET OF LIABILITIES - 0.34% | 27,465 | |||||||
TOTAL NET ASSETS - 100.00% | $ | 8,018,308 | ||||||
See accompanying notes
8
American Beacon Large Cap Value FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Percentages are stated as a percent of net assets. | ||
^ | Non-income producing security. | |
‡ | Restricked Stock — 6 Months | |
# | The Fund is affiliated by having the same investment advisor. | |
§ | At April 30, 2010, security pledged as collateral for open futures contracts. |
Futures Contracts
(dollars in thousands)
Unrealized | ||||||||||||||||
Number of | Expiration | Market | Appreciation/ | |||||||||||||
Contracts | Date | Value | (Depreciation) | |||||||||||||
Emini S&P 500 Index | 5,026 | Jun 2010 | $ | 297,388 | $ | 5,314 | ||||||||||
See accompanying notes
9
American Beacon Large Cap Value FundSM
Statement of Assets and Liabilities
April 30, 2010 (in thousands, except share and per share amounts) (Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value A | $ | 7,930,843 | ||
Investments in affiliated securities, at value B | 60,000 | |||
Receivable for investments sold | 75,294 | |||
Dividends and interest receivable | 7,193 | |||
Receivable for fund shares sold | 28,798 | |||
Receivable for tax reclaims | 208 | |||
Prepaid expenses | 162 | |||
Total assets | 8,102,498 | |||
Liabilities: | ||||
Payable for investments purchased | 43,316 | |||
Payable for fund shares redeemed | 25,390 | |||
Payable for variation margin on open futures contracts | 5,765 | |||
Management and investment advisory fees payable (Note 2) | 5,078 | |||
Administrative service and service fees payable | 3,149 | |||
Professional fees payable | 30 | |||
Other liabilities | 1,462 | |||
Total liabilities | 84,190 | |||
Net assets | $ | 8,018,308 | ||
Analysis of Net Assets: | ||||
Paid-in-capital | 9,600,547 | |||
Undistributed net investment income | 21,807 | |||
Accumulated net realized loss | (2,022,646 | ) | ||
Unrealized appreciation of investments, futures contracts, and foreign currency | 418,600 | |||
Net assets | $ | 8,018,308 | ||
Shares outstanding (no par value): | ||||
Institutional Class | 142,006,729 | |||
Y Class | 97,943 | |||
Investor Class | 261,208,590 | |||
Advisor Class | 7,707,332 | |||
Retirement Class | 80 | |||
AMR Class | 31,787,857 | |||
Net asset value, offering and redemption price per share: | ||||
Institutional Class | $ | 18.69 | ||
Y Class | $ | 18.63 | ||
Investor Class | $ | 17.76 | ||
Advisor Class | $ | 17.63 | ||
Retirement Class | $ | 17.51 | ||
AMR Class | $ | 18.47 |
A Cost of investments in unaffiliated securities | $ | 7,517,557 | ||
B Cost of investments in affiliated securities | $ | 60,000 |
See accompanying notes
10
American Beacon Large Cap Value FundSM
Statement of Operations
Six Months Ended April 30, 2010 (in thousands) (Unaudited)
Investment Income: | ||||
Dividend income from unaffiliated securities (net of foreign taxes)* | $ | 79,567 | ||
Dividend income from affiliated securities | 20 | |||
Interest income | 10 | |||
Total investment income | 79,597 | |||
Expenses: | ||||
Management and investment advisory fees (Note 2) | 8,773 | |||
Administrative service fees (Note 2): | ||||
Institutional Class | 3,645 | |||
Y Class | 1 | |||
Investor Class | 6,300 | |||
Advisor Class | 187 | |||
AMR Class | 139 | |||
Transfer agent fees: | ||||
Institutional Class | 66 | |||
Investor Class | 126 | |||
Advisor Class | 7 | |||
AMR Class | 14 | |||
Custody and fund accounting fees | 534 | |||
Professional fees | 120 | |||
Registration fees and expenses | 63 | |||
Service fees: | ||||
Investor Class (Note 2) | 7,623 | |||
Advisor Class (Note 2) | 156 | |||
Distribution fees — Service Class (Note 2) | 157 | |||
Prospectus and shareholder reports | 741 | |||
Trustee fees | 245 | |||
Other expenses | 240 | |||
Total expenses | 29,137 | |||
Net investment income | 50,460 | |||
Realized and unrealized gain (loss) on investments: | ||||
Net realized gain (loss) from: | ||||
Investments | (55,448 | ) | ||
Commission recapture (Note 1) | 32 | |||
Futures contracts | 27,561 | |||
Change in net unrealized appreciation or depreciation of: | ||||
Investments | 1,065,063 | |||
Futures contracts | 10,188 | |||
Net gain on investments | 1,047,396 | |||
Net increase in net assets resulting from operations | $ | 1,097,856 | ||
* Foreign taxes | $ | 469 |
See accompanying notes
11
American Beacon Large Cap Value FundSM
Statement of Changes in Net Assets (in thousands)
Six Months | Year Ended | |||||||
Ended | October 31, | |||||||
April 30, 2010 | 2009 | |||||||
(unaudited) | ||||||||
Increase (Decrease) in Net Assets: | ||||||||
Operations: | ||||||||
Net investment income | $ | 50,460 | $ | 125,394 | ||||
Net realized loss on investments, futures contracts, and foreign currency transactions | (27,855 | ) | (825,817 | ) | ||||
Change in net unrealized appreciation of investments, futures contracts, and foreign currency translations | 1,075,251 | 1,366,171 | ||||||
Net increase in net assets resulting from operations | 1,097,856 | 665,748 | ||||||
Distributions to Shareholders: | ||||||||
Net investment income: | ||||||||
Institutional Class | (40,440 | ) | (57,494 | ) | ||||
Y Class | (15 | ) | — | |||||
Investor Class | (61,616 | ) | (96,586 | ) | ||||
Advisor Class | (1,747 | ) | (2,701 | ) | ||||
AMR Class | (10,649 | ) | (15,992 | ) | ||||
Net distributions to shareholders | (114,467 | ) | (172,773 | ) | ||||
Capital Share Transactions: | ||||||||
Proceeds from sales of shares | 982,021 | 1,578,918 | ||||||
Reinvestment of dividends and distributions | 109,446 | 164,886 | ||||||
Cost of shares redeemed | (712,088 | ) | (1,810,886 | ) | ||||
Net increase (decrease) in net assets from capital share transactions | 379,379 | (67,082 | ) | |||||
Net increase in net assets | 1,362,768 | 425,893 | ||||||
Net Assets: | ||||||||
Beginning of period | 6,655,540 | 6,229,647 | ||||||
End of Period * | $ | 8,018,308 | $ | 6,655,540 | ||||
* Includes undistributed net investment income of | $ | 21,807 | $ | 85,814 | ||||
See accompanying notes
12
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
1. Organization and Significant Accounting Policies
American Beacon Funds (the “Trust”) is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, (the “Act”) as a diversified, open-end management investment company. These financial statements and notes to the financial statements relate to the American Beacon Large Cap Value Fund (the “Fund”), a series of the Trust.
American Beacon Advisors, Inc. (the “Manager”) is a wholly-owned subsidiary of Lighthouse Holdings, Inc. and was organized in 1986 to provide business management, advisory, administrative and asset management consulting services to the Trust and other investors.
Class Disclosure
The Fund has multiple classes of shares designed to meet the needs of different groups of investors. The following table sets forth the differences amongst the classes:
Class: | Offered to: | |
Institutional Class | Investors making an initial investment of $250,000 | |
Y Class | Investors making an initial investment of $100,000 | |
Investor Class | General public and investors investing through an intermediary | |
Advisor Class | Investors investing through an intermediary | |
Retirement Class | Investors investing through an intermediary | |
AMR Class | Investors in the tax-exempt retirement and benefit plans of the Manager, AMR Corporation, and its affiliates |
Administrative service fees, service fees and distribution fees vary amongst the classes as described more fully in footnote 2.
Investment income, net capital gains (losses) and all expenses incurred by the Fund are allocated based on the relative net assets of each class, except for service fees and certain other fees and expenses related solely to one class of shares.
Security Valuation
Investments are valued at the close of the New York Stock Exchange (the “Exchange”), normally 4 p.m. ET, each day that the Exchange is open for business. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade.
Debt securities (other than short-term securities) normally are valued on the basis of prices provided by an independent pricing service and may take into account appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. The prices of debt securities may be determined using quotes obtained from brokers.
Investments in mutual funds are valued at the closing net asset value per share of the mutual fund on the day of valuation. Investment grade short-term obligations with 60 days or less to maturity are valued using the amortized cost method, which approximates market value.
Securities for which market prices are not readily available or are not reflective of the fair value of the security, as determined by the Manager, will be priced at fair value following procedures approved by the Board of Trustees (the “Board”).
13
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
Valuation Inputs
Various inputs may be used to determine the value of the Fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1 | Quoted prices in active markets for identical securities. | |||
Level 2 | Prices determined using other significant observable inputs. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others. | |||
Level 3 | Prices determined using other significant unobservable inputs. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
The Fund’s investments are summarized by level based on the inputs used to determine their values. As of April 30, 2010, the Fund’s investments were classified as follows: (in thousands)
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Common Stock | $ | 7,687,793 | $ | — | $ | — | $ | 7,687,793 | ||||||||
Short Term Investments | 272,638 | 30,412 | — | 272,638 | ||||||||||||
Total Investments in Securities | $ | 7,960,431 | $ | 30,412 | $ | — | $ | 7,990,843 | ||||||||
Futures Contracts | 297,388 | — | — | 297,388 |
Security Transactions and Investment Income
Security transactions are recorded on the trade date of the security purchase or sale. The Fund may purchase securities with delivery or payment to occur at a later date. At the time the Fund enters into a commitment to purchase a security, the transaction is recorded, and the value of the security is reflected in the net asset value. The value of the security may vary with market fluctuations.
Dividend income, net of foreign taxes, is recorded on the ex-dividend date. Interest income is earned from settlement date, recorded on the accrual basis, and adjusted, if necessary, for accretion of discounts and amortization of premiums. For financial and tax reporting purposes, realized gains and losses are determined on the basis of specific lot identification.
Futures Contracts
Futures contracts are contracts to buy or sell a standard quantity of securities at a specified price on a future date. The Fund may enter into financial futures contracts as a method for keeping assets readily convertible to cash if needed to meet shareholder redemptions or for other needs while maintaining exposure to the stock or bond market, as applicable. The primary risks associated with the use of futures contracts are the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Upon entering into a futures contract, the Fund is required to set aside or deposit with a broker an amount, termed the initial margin, which typically represents 5% of the face value of the futures contract. The Fund reflects this amount on the Schedule of Investments as a U.S. Treasury Bill held as collateral for futures contracts. Payments to and from the broker, known as variation margin, are required to be made on a daily basis as the price of the futures contract fluctuates. Changes in initial settlement values are accounted for as unrealized appreciation (depreciation) until the contracts are terminated, at which time realized gains and losses are recognized. Futures contracts are valued at the most recent settlement price established each day by the exchange on which they are traded.
14
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2010 (in thousands)
Liability | ||||||
Statement of Assets and Liabilities | Derivatives | Fair Value | ||||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* | $ | 5,314 |
Effect of derivative instruments not accounted for as hedging instruments during the year ended April 30, 2010 (in thousands)
Statement of Operations | Derivative | Fair Value | ||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 27,561 | |||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | $ | 10,188 |
* | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments footnotes. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Dividends to Shareholders
Dividends from net investment income of the Fund normally will be declared and paid at least annually. Distributions, if any, of net realized capital gains are generally paid at least annually and recorded on the ex-dividend date.
Commission Recapture
The Fund has established brokerage commission recapture arrangements with certain brokers or dealers. If the Fund’s investment advisor chooses to execute a transaction through a participating broker, the broker rebates a portion of the commission back to the Fund. Any collateral benefit received through participation in the commission recapture program is directed exclusively to the Fund. This amount is reported with the net realized gain in the Fund’s Statement of Operations.
Allocation of Income, Expenses, Gains and Losses
Income, expenses (other than those attributable to a specific class), gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimated.
Other
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liability arising out of the performance of their duties to the Trust. In the normal course of business, the Trust enters into contracts that provide indemnification to the other party or parties against potential costs or liabilities. The Trust’s maximum exposure under these arrangements is dependent on claims that may be made in the future and, therefore, cannot be estimated. The Trust has had no prior claims or losses pursuant to any such agreement.
2. Transactions with Affiliates
Management Agreement
The Trust and the Manager are parties to a Management Agreement that obligates the Manager to provide or oversee the provision of investment advisory and portfolio management services. Investment assets of the
15
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
Fund are managed by multiple investment advisors that have entered into separate investment advisory agreements with the Manager. As compensation for performing the duties required under the Management Agreement, the Manager receives from the Fund an annualized fee equal to 0.05% of the average daily net assets plus amounts paid by the Manager to the investment advisors hired by the Manager to direct investment activities of the Funds. Management fees paid during the six months ended April 30, 2010 were as follows (dollars in thousands):
Amounts paid to | Net Amounts | |||||
Management | Management | Investment | Retained by | |||
Fee Rate | Fee | Advisors | Manager | |||
0.175%-0.65% | $8,773 | $6,945 | $1,828 |
Administrative Services Agreement
The Manager and the Trust entered into an Administrative Services Agreement which obligates the Manager to provide or oversee administrative services to the Fund. As compensation for performing the duties required under the Administrative Services Agreement, the Manager receives an annualized fee of 0.30% of the average daily net assets of the Institutional, Y, Investor, Advisor, and Retirement Classes of the Fund and 0.05% of the average daily net assets of the AMR Class of the Fund.
Distribution Plans
The Fund, except for the Advisor and Retirement Classes of the Fund, has adopted a “defensive” Distribution Plan (the “Plan”) in accordance with Rule 12b-1 under the Act, pursuant to which no fees may be charged to the Fund for distribution purposes. However, the Plan authorizes the management and administrative service fees received by the Manager and the investment advisors hired by the Manager to be used for distribution purposes. Under this Plan, the Fund does not intend to compensate the Manager or any other party, either directly or indirectly, for the distribution of Fund shares.
A separate Distribution Plan (the “Distribution Plan”) has been adopted pursuant to Rule 12b-1 under the Act for the Advisor and Retirement Classes of the Fund. Under the Distribution Plan, as compensation for distribution assistance, the Manager receives an annual fee of 0.25% of the average daily net assets of the Advisor Class and 0.50% of the average daily net assets of the Retirement Class. The fee will be payable without regard to whether the amount of the fee is more or less than the actual expenses incurred in a particular month by the Manager for distribution assistance.
Service Plans
The Manager and the Trust entered into Service Plans that obligate the Manager to oversee additional shareholder servicing of the Y, Investor, Advisor and Retirement Classes. As compensation for performing the duties required under the Service Plans, the Manager receives 0.10% of the average daily net assets of the Y Class, 0.25% of the average daily net assets of the Advisor and Retirement Classes and up to 0.375% of the average daily net assets of the Investor Class.
Investment in Affiliated Funds
The Fund may invest in the American Beacon Money Market Select Fund (the “MM Select Fund”) and the American Beacon US Government Money Market Select Fund (the “USG Select Fund”), (collectively the “Select Funds”). The Select Funds and the Fund have the same investment advisor and therefore, are considered to be affiliated. The Manager serves as investment advisor to the Select Funds and receives from the Select Funds an annualized fee of 0.09% of its average daily net assets of the Select Funds. During the six months ended April 30, 2010, the Manager earned fees from the Select Funds totaling $29,753.
16
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
Interfund Lending Program
Pursuant to an exemptive order by the Securities and Exchange Commission (“SEC”), the Fund, along with other registered investment companies having management contracts with the Manager, may participate in an interfund lending program as a borrower. This program provides an alternative credit facility allowing the Fund to borrow from other participating Funds. For the six months ended April 30, 2010, the Fund did not utilize the credit facility.
Expense Reimbursement Plan
The Fund has adopted an Expense Reimbursement Plan whereby the manager may seek repayment of fees waived or expenses reimbursed for a period of up to three years. However, reimbursement will occur only if the Class’ average net assets have grown or expenses have declined sufficiently to allow reimbursement without causing its expense ratio to exceed the previously agreed upon contractual expense limit. During the six months ended April 30, 2010, there were no fees waived or reimbursed expenses subject to potential recovery.
3. Federal Income and Excise Taxes
It is the policy of the Fund to comply with the requirements of Subchapter M of the Internal Revenue Code and to distribute substantially all net investment income as well as any net realized capital gains on the sale of investments. Therefore, no federal income or excise tax provision is required.
The Fund does not have any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the four year period ended October 31, 2009 remains subject to examination by the Internal Revenue Service. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statement of Operations.
Dividends are categorized in accordance with income tax regulations which may treat certain transactions differently than U.S. generally accepted accounting principles. Accordingly, the character of distributions and composition of net assets for tax purposes may differ from those reflected in the accompanying financial statements.
The tax character of distributions paid during the six months ended April 30, 2010 and the fiscal year ended October 31, 2009 were as follows (in thousands):
Six Months | Year Ended | |||||||
Ended April 30, | October 31, | |||||||
2010 | 2009 | |||||||
(unaudited) | ||||||||
Distributions paid from: | ||||||||
Ordinary income* | ||||||||
Institutional Class | $ | 40,440 | $ | 57,494 | ||||
Y Class | 15 | — | ||||||
Investor Class | 61,616 | 96,586 | ||||||
Advisor Class | 1,747 | 2,701 | ||||||
AMR Class | 10,649 | 15,992 | ||||||
Long-term capital gain | ||||||||
Institutional Class | — | — | ||||||
Investor Class | — | — | ||||||
Advisor Class | — | — | ||||||
AMR Class | — | — | ||||||
Total distributions paid | $ | 114,467 | $ | 172,773 | ||||
* | For tax purposes, short-term capital gains are considered ordinary income distributions. |
17
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
As of April 30, 2010, the components of distributable earnings on a tax basis were as follows (in thousands):
Cost basis of investments for federal income tax purposes | $ | 7,846,200 | ||
Unrealized appreciation | 992,978 | |||
Unrealized depreciation | (848,335 | ) | ||
Net unrealized appreciation/(depreciation) | 144,643 | |||
Undistributed ordinary income | 21,807 | |||
Undistributed long-term gain/(loss) | (1,754,045 | ) | ||
Other temporary differences | 5,356 | |||
Distributable earnings | $ | (1,582,239 | ) | |
Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences. The temporary differences between financial reporting and tax-basis reporting of unrealized appreciation/(depreciation) are attributable primarily to the tax deferral of losses from wash sales and the realization for tax purposes of unrealized gains/(losses) on certain derivative instruments.
Due to inherent differences in the recognition of income, expenses and realized gains/losses under U.S. generally accepted accounting principles and federal income tax regulations, permanent differences between book and tax reporting have been identified and appropriately reclassified on the Statement of Assets and Liabilities.
Accordingly, the following amounts represent current year permanent differences derived from reclassifications of income from real estate investment securities, foreign currency, and dividend reclasses that have been reclassified as of April 30, 2010 (in thousands):
Paid-in-capital | $ | 2 | ||
Undistributed net investment income | — | |||
Accumulated net realized gain (loss) | (2 | ) | ||
Unrealized appreciation (depreciation) of investments, futures contracts and foreign currency | — |
At April 30, 2010, the capital loss carry forward position of the Fund for federal income tax purposes was $1,044,692, $684,423, and $19,617 expiring in 2016, 2017, and 2018, respectively. (in thousands)
4. Investment Transactions
The aggregate cost of purchases and proceeds from sales of investments, other than short-term obligations, for the six months ended April 30, 2010 were (in thousands) $1,113,842 and $850,047, respectively.
A summary of the Fund’s direct transactions in the Select Funds for the six months ended April 30, 2010 is set forth below (in thousands):
October 31, 2009 | April 30, 2010 | |||||||||||||||
Affiliate | Shares/Market Value | Purchases | Sales | Shares/Market Value | ||||||||||||
USG Select Fund | $ | 60,000 | $ | — | $ | — | $ | 60,000 |
5. Capital Share Transactions
The tables below summarize the activity in capital shares for each Class of the Fund (dollars and shares in thousands):
18
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
Six months Ended April 30, 2010
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
Shares sold | 16,009 | $ | 283,566 | 97 | $ | 1,744 | 39,624 | $ | 670,188 | |||||||||||||||
Reinvestment of dividends | 2,134 | 36,957 | 1 | 15 | 3,645 | 60,109 | ||||||||||||||||||
Shares redeemed | (12,277 | ) | (216,838 | ) | — | — | (26,991 | ) | (452,459 | ) | ||||||||||||||
Net increase (decrease) in shares outstanding | 5,866 | $ | 103,685 | 98 | $ | 1,759 | 16,278 | $ | 277,838 |
Advisor Class | Retirement Class | AMR Class | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
Shares sold | 706 | $ | 11,926 | — | $ | — | 828 | $ | 14,597 | |||||||||||||||
Reinvestment of dividends | 105 | 1,716 | — | — | 623 | 10,649 | ||||||||||||||||||
Shares redeemed | (573 | ) | (9,513 | ) | — | — | (1,925 | ) | (33,278 | ) | ||||||||||||||
Net increase (decrease) in shares outstanding | 238 | $ | 4,129 | — | $ | — | (474 | ) | $ | (8,032 | ) |
Year Ended October 31, 2009
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
Shares sold | 38,693 | $ | 535,949 | — | $ | 1 | 74,391 | $ | 985,338 | |||||||||||||||
Reinvestment of dividends | 4,043 | 53,008 | — | — | 7,465 | 93,236 | ||||||||||||||||||
Shares redeemed | (42,400 | ) | (575,194 | ) | — | — | (88,535 | ) | (1,151,477 | ) | ||||||||||||||
Net increase (decrease) in shares outstanding | 336 | $ | 13,763 | — | $ | 1 | (6,679 | ) | $ | (72,903 | ) |
Advisor Class | Retirement Class | AMR Class | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
Shares sold | 1,726 | $ | 22,607 | — | $ | 1 | 2,516 | $ | 35,022 | |||||||||||||||
Reinvestment of dividends | 214 | 2,650 | — | — | 1,236 | 15,992 | ||||||||||||||||||
Shares redeemed | (1,478 | ) | (19,228 | ) | — | — | (4,909 | ) | (64,987 | ) | ||||||||||||||
Net increase (decrease) in shares outstanding | 462 | $ | 6,029 | — | $ | 1 | (1,157 | ) | $ | (13,973 | ) |
6. Subsequent Events
Management has evaluated the possibility of subsequent events existing in the Fund’s financial statements. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements.
19
American Beacon Large Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended April | Year Ended October 31, | |||||||||||||||||||||||
30, 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.32 | $ | 15.01 | $ | 26.03 | $ | 23.77 | $ | 21.00 | $ | 18.23 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income A,B | 0.15 | 0.35 | 0.51 | 0.40 | 0.31 | 0.28 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 2.52 | 1.40 | (10.41 | ) | 2.78 | 3.48 | 2.74 | |||||||||||||||||
Total income (loss) from investment operations | 2.67 | 1.75 | (9.90 | ) | 3.18 | 3.79 | 3.02 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Dividends from net investment income | (0.30 | ) | (0.44 | ) | (0.41 | ) | (0.31 | ) | (0.26 | ) | (0.25 | ) | ||||||||||||
Distributions from net realized gains on securities | — | — | (0.71 | ) | (0.61 | ) | (0.76 | ) | — | |||||||||||||||
Total distributions | (0.30 | ) | (0.44 | ) | (1.12 | ) | (0.92 | ) | (1.02 | ) | (0.25 | ) | ||||||||||||
Net asset value, end of period | $ | 18.69 | $ | 16.32 | $ | 15.01 | $ | 26.03 | $ | 23.77 | $ | 21.00 | ||||||||||||
Total return | 16.49 | %C | 12.41 | % | (39.59 | )% | 13.76 | % | 18.69 | % | 16.64 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 2,653,484 | $ | 2,221,162 | $ | 2,038,539 | $ | 2,493,451 | $ | 958,830 | $ | 201,111 | ||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||
Expenses, net of waivers | 0.60 | % | 0.61 | % | 0.58 | % | 0.59 | % | 0.60 | % | 0.60 | % | ||||||||||||
Expenses, before waivers | 0.60 | % | 0.61 | % | 0.58 | % | 0.59 | % | 0.60 | % | 0.60 | % | ||||||||||||
Net investment income, net of waivers | 1.58 | % | 2.36 | % | 2.19 | % | 1.82 | % | 1.86 | % | 1.58 | % | ||||||||||||
Net investment income (loss), before waivers | 1.58 | % | 2.36 | % | 2.19 | % | 1.82 | % | 1.86 | % | 1.58 | % | ||||||||||||
Portfolio turnover rate | 12 | %C | 27 | % | 28 | % | 20 | % | 26 | % | 25 | % |
A | Through October 31, 2005, net investment income was calculated by subtracting class expenses per share from the Fund’s net investment income per share before class expenses. | |
B | For purposes of this calculation, through October 31, 2007, the change in undistributed net investment income per share was derived by dividing the change in undistributed net investment income by average shares outstanding. | |
C | Not annualized. |
20
American Beacon Large Cap Value FundSM
Financial Highlights
(For a share outstanding through the period)
Y Class | Investor Class | |||||||||||||||||||||||||||||||
Six | ||||||||||||||||||||||||||||||||
Months | ||||||||||||||||||||||||||||||||
Ended | August 3 | Six Months | ||||||||||||||||||||||||||||||
April 30, | to October | Ended April | Year Ended October 31, | |||||||||||||||||||||||||||||
2010 | 31, 2009 | 30, 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.32 | $ | 15.59 | $ | 15.51 | $ | 14.29 | $ | 24.83 | $ | 22.74 | $ | 20.16 | $ | 17.54 | ||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income A,B | 0.16 | 0.06 | 0.11 | 0.28 | 0.41 | 0.35 | 0.28 | 0.27 | ||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 2.49 | 0.67 | 2.39 | 1.34 | (9.88 | ) | 2.63 | 3.31 | 2.58 | |||||||||||||||||||||||
Total income (loss) from investment operations | 2.65 | 0.73 | 2.50 | 1.62 | (9.47 | ) | 2.98 | 3.59 | 2.85 | |||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.34 | ) | — | (0.25 | ) | (0.40 | ) | (0.36 | ) | (0.28 | ) | (0.25 | ) | (0.23 | ) | |||||||||||||||||
Distributions from net realized gains on securities | — | — | — | — | (0.71 | ) | (0.61 | ) | (0.76 | ) | — | |||||||||||||||||||||
Total distributions | (0.34 | ) | — | (0.25 | ) | (0.40 | ) | (1.07 | ) | (0.89 | ) | (1.01 | ) | (0.23 | ) | |||||||||||||||||
Net asset value, end of period | $ | 18.63 | $ | 16.32 | $ | 17.76 | $ | 15.51 | $ | 14.29 | $ | 24.83 | $ | 22.74 | $ | 20.16 | ||||||||||||||||
Total return | 16.37 | %C | 4.68 | %C | 16.26 | %C | 11.99 | % | (39.72 | )% | 13.46 | % | 18.44 | % | 16.33 | % | ||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,825 | $ | 1 | $ | 4,640,039 | $ | 3,798,632 | $ | 3,594,565 | $ | 5,198,835 | $ | 2,586,410 | $ | 526,357 | ||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||
Expenses, net of waivers | 0.71 | % | 0.68 | %E | 0.96 | % | 0.93 | % | 0.83 | % | 0.83 | % | 0.85 | % | 0.86 | % | ||||||||||||||||
Expenses, before waivers | 0.71 | % | 0.68 | %E | 0.96 | % | 0.93 | % | 0.83 | % | 0.83 | % | 0.85 | % | 0.86 | % | ||||||||||||||||
Net investment income, net of waivers | 1.10 | % | 1.58 | %E | 1.21 | % | 2.05 | % | 1.94 | % | 1.59 | % | 1.61 | % | 1.30 | % | ||||||||||||||||
Net investment income (loss), before waivers | 1.10 | % | 1.58 | %E | 1.21 | % | 2.05 | % | 1.94 | % | 1.59 | % | 1.61 | % | 1.30 | % | ||||||||||||||||
Portfolio turnover rate | 12 | %C | 27 | %D | 12 | %C | 27 | % | 28 | % | 20 | % | 26 | % | 25 | % |
A | Through October 31, 2005, net investment income was calculated by subtracting class expenses per share from the Fund’s net investment income per share before class expenses. | |
B | For purposes of this calculation, through October 31, 2007, the change in undistributed net investment income per share was derived by dividing the change in undistributed net investment income by average shares outstanding. | |
C | Not annualized. | |
D | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. | |
E | Annualized. |
21
American Beacon Large Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
Advisor Class | Retirement Class | |||||||||||||||||||||||||||||||
Six | Six | |||||||||||||||||||||||||||||||
Months | May | Months | ||||||||||||||||||||||||||||||
Ended | 31 to | Ended | May 1 to | |||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | October | April 30, | October | ||||||||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 31, 2005 | 2010 | 31, 2009 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 15.39 | $ | 14.19 | $ | 24.70 | $ | 22.64 | $ | 20.13 | $ | 19.33 | $ | 15.36 | $ | 12.66 | ||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income A,B | 0.10 | 0.26 | 0.32 | 0.28 | 0.26 | 0.01 | 0.07 | 0.08 | ||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 2.37 | 1.32 | (9.79 | ) | 2.62 | 3.27 | 0.79 | 2.37 | 2.62 | |||||||||||||||||||||||
Total income (loss) from investment operations | 2.47 | 1.58 | (9.47 | ) | 2.90 | 3.53 | 0.80 | 2.44 | 2.70 | |||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.23 | ) | (0.38 | ) | (0.33 | ) | (0.23 | ) | (0.26 | ) | — | (0.29 | ) | — | ||||||||||||||||||
Distributions from net realized gains on securities | — | — | (0.71 | ) | (0.61 | ) | (0.76 | ) | — | — | — | |||||||||||||||||||||
Total distributions | (0.23 | ) | (0.38 | ) | (1.04 | ) | (0.84 | ) | (1.02 | ) | — | (0.29 | ) | — | ||||||||||||||||||
Net asset value, end of period | $ | 17.63 | $ | 15.39 | $ | 14.19 | $ | 24.70 | $ | 22.64 | $ | 20.13 | $ | 17.51 | $ | 15.36 | ||||||||||||||||
Total return | 16.19 | %C | 11.81 | % | (39.87 | )% | 13.16 | % | 18.18 | % | 4.14 | % | 16.04 | %C | 21.33 | %C | ||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 135,881 | $ | 114,945 | $ | 99,416 | $ | 99,854 | $ | 39,077 | $ | 11,604 | $ | 1 | $ | 1 | ||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||
Expenses, net of waivers | 1.10 | % | 1.10 | % | 1.08 | % | 1.08 | % | 1.09 | % | 1.14 | %D | 1.37 | % | 1.37 | %D | ||||||||||||||||
Expenses, before waivers | 1.10 | % | 1.12 | % | 1.08 | % | 1.08 | % | 1.09 | % | 1.77 | %D | 1.37 | % | 1.37 | %D | ||||||||||||||||
Net investment income, net of waivers | 1.08 | % | 1.86 | % | 1.69 | % | 1.32 | % | 1.39 | % | 1.72 | %D | 0.80 | % | 1.15 | %D | ||||||||||||||||
Net investment income (loss), before waivers | 1.08 | % | 1.84 | % | 1.69 | % | 1.32 | % | 1.39 | % | 1.09 | %D | 0.80 | % | 1.15 | %D | ||||||||||||||||
Portfolio turnover rate | 12 | %C | 27 | % | 28 | % | 20 | % | 26 | % | 25 | %E | 12 | %C | 27 | %F |
A | Through October 31, 2005, net investment income was calculated by subtracting class expenses per share from the Fund’s net investment income per share before class expenses. | |
B | For purposes of this calculation, through October 31, 2007, the change in undistributed net investment income per share was derived by dividing the change in undistributed net investment income by average shares outstanding. | |
C | Not annualized. | |
D | Annualized. | |
E | Portfolio turnover rate is for the period from November 1, 2004 through October 31, 2005. | |
F | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. |
22
American Beacon Large Cap Value FundSM
Financial Highlights
(For a share outstanding through the period)
AMR Class | ||||||||||||||||||||||||
Six | ||||||||||||||||||||||||
Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
April 30, | Year Ended October 31, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.14 | $ | 14.88 | $ | 25.80 | $ | 23.55 | $ | 20.78 | $ | 18.02 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income A,B | 0.16 | 0.37 | 0.51 | 0.45 | 0.35 | 0.31 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 2.50 | 1.38 | (10.26 | ) | 2.76 | 3.47 | 2.73 | |||||||||||||||||
Total income (loss) from investment operations | 2.66 | 1.75 | (9.75 | ) | 3.21 | 3.82 | 3.04 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Dividends from net investment income | (0.33 | ) | (0.49 | ) | (0.46 | ) | (0.35 | ) | (0.29 | ) | (0.28 | ) | ||||||||||||
Distributions from net realized gains on securities | — | — | (0.71 | ) | (0.61 | ) | (0.76 | ) | — | |||||||||||||||
Total distributions | (0.33 | ) | (0.49 | ) | (1.17 | ) | (0.96 | ) | (1.05 | ) | (0.28 | ) | ||||||||||||
Net asset value, end of period | $ | 18.47 | $ | 16.14 | $ | 14.88 | $ | 25.80 | $ | 23.55 | $ | 20.78 | ||||||||||||
Total return | 16.67 | %C | 12.59 | % | (39.43 | )% | 14.03 | % | 19.08 | % | 16.95 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 587,078 | $ | 520,799 | $ | 497,127 | $ | 972,260 | $ | 1,024,899 | $ | 848,219 | ||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||
Expenses, net of waivers | 0.35 | % | 0.36 | % | 0.32 | % | 0.32 | % | 0.34 | % | 0.35 | % | ||||||||||||
Expenses, before waivers | 0.35 | % | 0.36 | % | 0.32 | % | 0.32 | % | 0.34 | % | 0.35 | % | ||||||||||||
Net investment income, net of waivers | 1.84 | % | 2.62 | % | 2.44 | % | 2.13 | % | 2.18 | % | 1.87 | % | ||||||||||||
Net investment income (loss), before waivers | 1.84 | % | 2.62 | % | 2.44 | % | 2.13 | % | 2.18 | % | 1.87 | % | ||||||||||||
Portfolio turnover rate | 12 | %C | 27 | % | 28 | % | 20 | % | 26 | % | 25 | % |
A | Through October 31, 2005, net investment income was calculated by subtracting class expenses per share from the Fund’s net investment income per share before class expenses. | |
B | For purposes of this calculation, through October 31, 2007, the change in undistributed net investment income per share was derived by dividing the change in undistributed net investment income by average shares outstanding. | |
C | Not annualized. |
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Delivery of Documents
To reduce expenses, your financial institution may mail only one copy of the Prospectus, Annual Report and Semi-Annual Report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please contact your financial institution. Delivery of individual copies will commence thirty days after receiving your request.
If you invest in the Fund through a financial institution, you may be able to receive the Fund’s regulatory mailings, such as the Prospectus, Annual Report and Semi-Annual Report, by e-mail. If you are interested in this option, please go to www.icsdelivery.com and search for your financial institution’s name or contact your financial institution directly.
To obtain more information about the Fund:
![]() | ![]() | |
By E-mail: | On the Internet: | |
american_beacon.funds@ambeacon.com | Visit our website at www.americanbeaconfunds.com | |
![]() | ![]() | |
By Telephone: | By Mail: | |
Institutional, Y, Investor, Advisor and Retirement Classes | American Beacon Funds | |
Call (800) 658-5811 | P.O. Box 219643 | |
AMR ClassSM | Kansas City, MO 64121-9643 | |
Call (800) 345-2345 | ||
Availability of Quarterly Portfolio Schedules | Availability of Proxy Voting Policy and Records | |
In addition to the Schedule of Investments provided in each semi-annual and annual report, the Fund files a complete schedule of its portfolio holdings with the Securities and Exchange Commission (“SEC”) on Form N-Q as of the first and third fiscal quarters. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room, 450 Fifth Street, NW, Washington, DC 20549. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330. A complete schedule of the Fund’s portfolio holdings is also available on the Funds’ website (www.americanbeaconfunds.com) approximately thirty days after the end of each month. | A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Fund’s Statement of Additional Information, is available free of charge on the Fund’s website (www.americanbeaconfunds.com) and by calling 1-800-967-9009 or by accessing the SEC’s website at www.sec.gov. The Fund’s proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Fund’s Forms N-PX are available on the SEC’s website at www.sec.gov. The Fund’s proxy voting record may also be obtained by calling 1-800-967-9009. |
Fund Service Providers:
Custodian State Street Bank and Trust Boston, Massachusetts | Transfer Agent Boston Financial Data Services Kansas City, Missouri | Independent Registered Public Accounting Firm Ernst & Young LLP Dallas, Texas | Distributor Foreside Fund Services, LLC Portland, Maine |
This report is prepared for shareholders of the American Beacon Funds and may be distributed to others only if preceded or accompanied by a current prospectus.
American Beacon Funds and the American Beacon Large Cap Value Fund are service marks of American Beacon Advisors, Inc.
SAR 4/10
00074817
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About American Beacon Advisors
Since 1986, American Beacon Advisors has offered a variety of products and investment advisory services to numerous institutional and retail clients, including a variety of mutual funds, corporate cash management, and separate account management.
Our clients include defined benefit plans, defined contribution plans, foundations, endowments, corporations, financial planners, and other institutional investors. With American Beacon Advisors, you can put the experience of a multi-billion dollar asset management firm to work for your company.
Contents
Message from American Beacon | 1 | |
Market and Performance Overview | 2 | |
6 | ||
Additional Information | Back Cover |
Any opinions herein, including forecasts, reflect our judgment as of the end of the reporting period and are subject to change. Each advisor’s strategies and the Fund’s portfolio composition will change depending on economic and market conditions. This report is not a complete analysis of market conditions and therefore, should not be relied upon as investment advice. Although economic and market information has been compiled from reliable sources, American Beacon Advisors, Inc. makes no representation as to the completeness or accuracy of the statements contained herein. |
Investing in the securities of small capitalization companies involves greater risk and the possibility of greater price volatility than investing in larger capitalization and more established companies.
American Beacon Funds | April 30, 2010 |
![](https://capedge.com/proxy/N-CSR/0000809593-10-000032/gene.jpg)
Fellow Shareholders,
Over the past six months, one universal theme seems to have emerged: while sudden and significant volatility may characterize the new economic world order, it doesn’t mean investors can’t benefit. Opportunity abounds for those who know how to capitalize on it.
Fortunately, this theme also underlies our investment philosophy at American Beacon:
With portfolios invested for the new economic reality—and conservatively managed for the longer term—we believe investors are better positioned to ride out the inevitable economic storms, whenever and wherever they occur.
It’s a philosophy that has served our shareholders well. It also explains how, in the face of continued weakness in the U.S. job and housing markets and mounting sovereign debt worries in Europe, our domestic equity-exposed funds could generate such respectable returns for the six-month period ended April 30, 2010. The American Beacon Small Cap Value Fund (Institutional Class) for example, generated a 28.55% return during this reporting period. Please note that the recent growth rate in the stock market has produced short-term returns that are not typical and may not continue in the future.
As global volatility has become the new norm, our focus at American Beacon remains trained on anticipating opportunities and meeting the challenges investors face today and will likely face tomorrow. This is what drives the composition of our fund line-up and the development of our new offerings in the last year.
It’s also a reflection of our commitment to you, a commitment we summarize as: Oversight 360°. Ours is a continuous commitment to cast a watchful and analytical eye over all the factors that influence our fellow shareholders’ investments.
As you review the enclosed market overview, portfolio listings, and detailed financial data, please know that we welcome the opportunity to serve your financial needs. To obtain further details about the American Beacon Funds family or to access your account information, please visit our website at www.americanbeaconfunds.com.
Thank you for your continued investment in the American Beacon Funds and know that we remain dedicated to offering you and your advisor the level of service and broad range of well-managed investment products you’ve come to expect from us.
Best Regards, | ||
![]() | ||
Gene L. Needles, Jr. | ||
President | ||
American Beacon Funds |
1
Domestic Equity Market Overview
April 30, 2010 (Unaudited)
In the face of continued weakness in the U.S. employment rate and the U.S. housing market and mounting sovereign debt worries abroad, the S&P 500 still managed to return an impressive 16.43% for the six months ended April 30, 2010. Buoyed by relatively healthy corporate earnings, the broader market performance reflected the economic optimism represented by: resilient personal spending on the part of the U.S. consumer; improved credit market conditions; and enhanced corporate efficiency. Still, corporate earnings remain below the long-term trend. Earnings still have room to grow, which bodes well for investors.
Another positive for investors comes from the fact that the retrenchment by Corporate America in the form of cost-cutting and improved operating efficiencies, which became apparent as 2009’s fourth quarter earnings season unfolded, is expected to continue providing added operating leverage. This was hardly an insignificant trend. During the fourth quarter, incremental pre-tax margins for companies in the S&P 500 Index were an astounding 64%, in other words, every $1 in incremental revenue gain resulted in $0.64 in additional pre-tax earnings. This improved corporate free cash flow put substantial cash reserves back onto balance sheets. That cash was expected to find its way into investors’ hands through increased dividends and/or share repurchases.
Despite flat income growth, the consumer resurfaced during the last six months, implying that there may have been an accompanying decline in the savings rate. Willingness of the consumer to spend was significant since consumer spending comprises two-thirds of the U.S. economy (based on GDP), making it a critical factor in gauging economic progress.
In addition to the consumer, other signs of economic expansion emerged since last October: productivity recovered, while inflation stayed in check, and the Fed remained accommodative. Cyclical sectors naturally performed well in this environment. Consumer Discretionary, Industrial, and Financial companies led the U.S. equity markets in returns, while Telecommunications, Energy, and Consumer Staples lagged. Value stocks also remained in favor, outpacing their growth counterparts across the market cap spectrum.
We continue to find compelling investment opportunities as the economic recovery builds momentum. Three core factors provide support for our optimism:
• | Corporate earnings and the U.S. economy are recovering from one of the deepest recessions since the Great Depression, which should amplify the magnitude of the equity market’s recovery. | ||
• | Companies have retrenched to such a level that modest increases in demand should be disproportionately accretive to earnings. | ||
• | The recovery of value stocks tends to carry on for several successive years following sizable market dislocations akin to 2008. |
With these dynamics underlying the domestic equity market, we feel there is some cause for continued investor optimism for the remainder of the year.
2
Performance Overview
American Beacon Small Cap Value FundSM
April 30, 2010 (Unaudited)
The Institutional Class of the Small Cap Value Fund returned 28.55% for the six months ended April 30, 2010, lagging the Russell 2000® Value Index (“Index”) return of 30.66% but outperforming the Lipper Small-Cap Value Funds Index return of 27.52% for the same period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/10 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,6) | 28.55 | % | 55.45 | % | 5.59 | % | 12.70 | % | ||||||||
Y Class (1,2,6) | 28.36 | % | 55.01 | % | 5.53 | % | 12.67 | % | ||||||||
Investor Class(1,6) | 28.37 | % | 54.83 | % | 5.30 | % | 12.39 | % | ||||||||
Advisor Class(1,3,6) | 28.20 | % | 54.66 | % | 5.05 | % | 12.19 | % | ||||||||
Retirement Class (1,4,6) | 28.13 | % | 54.36 | % | 5.00 | % | 12.17 | % | ||||||||
AMR Class(1,6) | 28.66 | % | 55.74 | % | 5.85 | % | 10.72 | % | ||||||||
Lipper Small-Cap Value Funds Index(5) | 27.52 | % | 53.26 | % | 6.05 | % | 10.04 | % | ||||||||
Russell 2000 Value Index (5) | 30.66 | % | 52.44 | % | 5.26 | % | 9.58 | % |
* | Not annualized | |
1. | Please note that the recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Performance shown is historical and may not be indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please call 1-800-967-9009 or visit www.americanbeaconfunds.com. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. | |
2. | Fund performance for the one-year, five-year and ten-year periods represents the total returns achieved by the Institutional Class from 4/30/00 up to 8/3/09, the inception date of the Y Class. Expenses of the Y Class are higher than those of the Institutional Class. As a result, total returns shown may be higher than they would have been had the Y Class been in existence since 4/30/00. | |
3. | Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/00 up to 5/1/03 and the returns of the Advisor Class since its inception. Expenses of the Advisor Class are higher than those of the Investor Class. As a result, total returns shown may be higher than they would have been had the Advisor Class been in existence since 4/30/00. A portion of the fees charged to the Advisor Class of the Fund was waived through 2004. Performance prior to waiving fees was lower than the actual returns shown for periods through 2004. | |
4. | Fund performance for the five-year and ten-year periods represents the total returns achieved by the Investor Class from 4/30/00 up to 5/1/03 and the Advisor Class from 5/1/03 up to 5/1/09, the inception date of the Retirement Class, and the returns of the Retirement Class since its inception. Expenses of the Retirement Class are higher than those of the Advisor and Investor Classes. As a result, total returns shown may be higher than they would have been had the Retirement Class been in existence since 4/30/00. | |
5. | Russell 2000® Value Index is a registered trademark of Frank Russell Company. The Russell 2000 Value Index is an unmanaged index of those stocks in the Russell 2000 Index with lower price-to-book ratios and lower forecasted growth values. The Lipper Small-Cap Value Funds Index tracks the results of the 30 largest mutual funds in the Lipper Small-Cap Value Funds category. Lipper is an independent mutual fund research and ranking service. One cannot directly invest in an index. | |
6. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, Retirement, and AMR Class shares was 0.85%, 1.12%, 1.16%, 1.35%, 1.54%, and 0.60%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report. |
The Fund underperformed the Index entirely due to poor performance through stock selection, as sector allocation was neutral relative to the Index.
Holdings in the Financials and Consumer Discretionary sectors detracted value from the Fund’s relative performance. Individual holdings in the Financials sector that had the largest impact on the Fund’s underperformance were Investment Technology Group (down 19.7%), DiamondRock Hospitality (up 42.2%), and Texas Capital Bancshares (down 3.9%) for the period the Fund owned the securities. In the Consumer Discretionary sector, Quiksilver (up 161.7%), Cabela’s (up 42.0%), and Brown Shoe (up 67.9%) were the largest detractors, for the period the Fund owned the securities. Good stock selection in the Health Care sector, where Amerigroup (up 62.6%) and Parexel International (up 90.0%) contributed most to returns, added relative value.
The Fund’s overweighting in Consumer Discretionary, the best performing sector in the Index, added value relative to the Index through sector allocation. This positive impact was offset by overweightings in the Health Care and Information Technology sectors, which detracted value.
The sub-advisors continue to focus on uncovering investment opportunities through stock selection that should benefit the Fund’s performance over the longer-term.
3
Performance Overview
American Beacon Small Cap Value FundSM
April 30, 2010 (Unaudited)
Top Ten Holdings
% of | ||||
Net Assets | ||||
Valassis Communications, Inc. | 1.4 | % | ||
Tidewater, Inc. | 0.9 | % | ||
LifePoint Hospitals, Inc. | 0.8 | % | ||
Rent-A-Center, Inc. | 0.8 | % | ||
NBTY, Inc. | 0.7 | % | ||
Aspen Insurance Holdings Ltd. | 0.7 | % | ||
Vishay Intertechnology, Inc. | 0.7 | % | ||
Terex Corp. | 0.6 | % | ||
Synovus Financial Corp. | 0.6 | % | ||
StanCorp Financial Group, Inc. | 0.6 | % |
Sector Allocation
% of | ||||
Equities | ||||
Financials | 24.4 | % | ||
Industrials | 16.9 | % | ||
Consumer Discretionary | 14.8 | % | ||
Information Technology | 14.0 | % | ||
Health Care | 9.8 | % | ||
Materials | 6.0 | % | ||
Energy | 5.4 | % | ||
Utilities | 5.4 | % | ||
Consumer Staples | 2.6 | % | ||
Telecommunication Services | 0.7 | % |
4
Fund Expenses
American Beacon Small Cap Value FundSM
April 30, 2010 (Unaudited)
Fund Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, administrative service fees, distribution (12b-1) fees, and other Fund expenses. The examples below are intended to help you understand the ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from November 1, 2009 through April 30, 2010.
Actual Expenses
The “Actual” lines of the table provide information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. Shareholders of the Investor and Institutional Classes that invest in the Fund through an IRA may be subject to a custodial IRA fee of $12 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $12 higher.
Hypothetical Example for Comparison Purposes
The “Hypothetical” lines of the table provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed 5% per year rate of return before expenses (not the Fund’s actual return). You may compare the ongoing costs of investing in the Fund with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Shareholders of the Investor and Institutional Classes that invest in the Fund through an IRA may be subject to a custodial IRA fee of $12 that is typically deducted each December. If your account was subject to a custodi al IRA fee during the period, your costs would have been $12 higher.
You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs charged by the Fund. Similarly, the expense examples for other funds do not reflect any transaction costs charged by those funds, such as sales charges (loads), redemption fees or exchange fees. Therefore, the “Hypothetical” lines of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If you were subject to any transaction costs during the period, your costs would have been higher.
Expenses Paid | ||||||||||||
Beginning Account | Ending Account | During Period* | ||||||||||
Value 11/1/09 | Value 4/30/10 | 11/1/09-4/30/10 | ||||||||||
Institutional Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,285.50 | $ | 4.70 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.68 | $ | 4.16 | ||||||
(5% return before expenses) | ||||||||||||
Y Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,283.61 | $ | 6.17 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.39 | $ | 5.46 | ||||||
(5% return before expenses) | ||||||||||||
Investor Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,283.67 | $ | 6.68 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.94 | $ | 5.91 | ||||||
(5% return before expenses) | ||||||||||||
Advisor Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,282.03 | $ | 7.53 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.20 | $ | 6.66 | ||||||
(5% return before expenses) | ||||||||||||
�� | ||||||||||||
Retirement Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,281.34 | $ | 8.48 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,017.36 | $ | 7.50 | ||||||
(5% return before expenses) | ||||||||||||
AMR Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,286.58 | $ | 3.29 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.92 | $ | 2.91 | ||||||
(5% return before expenses) |
* | Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.83%, 1.09%, 1.18%, 1.33%, 1.50% and 0.58% for the Institutional, Y, Investor, Advisor, Retirement and AMR Classes respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half-year period. |
5
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
COMMON STOCKS - 94.28% | ||||||||
COMMUNICATIONS - 0.36% | ||||||||
Media - 0.36% | ||||||||
Belo Corp. | 413,360 | $ | 3,584 | |||||
Brocade Communications Systems, Inc. ^ | 23,850 | 155 | ||||||
Meredith Corp. | 190,610 | 6,848 | ||||||
Total Communications | 10,587 | |||||||
CONSUMER DISCRETIONARY - 14.01% | ||||||||
Auto Components - 1.38% | ||||||||
American Axle & Manufacturing Holdings, Inc. ^ | 1,101,000 | 11,847 | ||||||
ATC Technology Corp. ^ | 35,100 | 717 | ||||||
Cooper Tire & Rubber Co. | 95,100 | 2,018 | ||||||
Fuel Systems Solutions, Inc. ^ † | 39,600 | 1,246 | ||||||
Gentex Corp. | 791,000 | 16,999 | ||||||
Goodyear Tire & Rubber Co. ^ | 539,900 | 7,251 | ||||||
Superior Industries International, Inc. | 58,500 | 986 | ||||||
41,064 | ||||||||
Hotels, Restaurants & Leisure - 1.54% | ||||||||
Ameristar Casinos, Inc. | 290,800 | 5,476 | ||||||
Bob Evans Farms, Inc. | 53,900 | 1,667 | ||||||
Boyd Gaming Corp. ^ † | 68,930 | 875 | ||||||
Burger King Holdings, Inc. | 140,400 | 2,963 | ||||||
CEC Entertainment, Inc. ^ | 33,800 | 1,320 | ||||||
CKE Restaurants, Inc. | 241,300 | 2,978 | ||||||
Cracker Barrel Old Country Store, Inc. | 84,611 | 4,177 | ||||||
Domino’s Pizza, Inc. ^ | 120,900 | 1,863 | ||||||
Gaylord Entertainment Co. ^ † | 85,739 | 2,894 | ||||||
Jack in the Box, Inc. ^ | 699,740 | 16,458 | ||||||
Lakes Entertainment, Inc. ^ | 150,800 | 339 | ||||||
Orient-Express Hotels Ltd. ^ | 163,400 | 2,230 | ||||||
Ruby Tuesday, Inc. ^ | 14,744 | 165 | ||||||
Speedway Motorsports, Inc. | 166,610 | 2,707 | ||||||
46,112 | ||||||||
Household Durables - 1.87% | ||||||||
Cavco Industries, Inc. ^ | 45,589 | 1,786 | ||||||
Ethan Allen Interiors, Inc. | 283,940 | 5,736 | ||||||
Furniture Brands International, Inc. ^ | 834,260 | 6,908 | ||||||
Helen of Troy Ltd. ^ | 70,648 | 1,908 | ||||||
M.D.C. Holdings, Inc. | 146,910 | 5,627 | ||||||
Mohawk Industries, Inc. ^ | 18,000 | 1,147 | ||||||
National Presto Industries, Inc. | 16,000 | 1,791 | ||||||
Ryland Group, Inc. | 322,690 | 7,351 | ||||||
Snap-On, Inc. | 103,640 | 4,993 | ||||||
Whirlpool Corp. | 169,800 | 18,486 | ||||||
55,733 | ||||||||
Internet & Catalog Retail - 0.35% | ||||||||
School Specialty, Inc. ^ | 20,850 | 489 | ||||||
Systemax, Inc. | 125,400 | 2,913 | ||||||
Weight Watchers International, Inc. | 259,700 | 6,900 | ||||||
10,302 | ||||||||
Leisure Equipment & Products - 0.92% | ||||||||
Brunswick Corp. | 516,200 | 10,789 | ||||||
Callaway Golf Co. | 783,150 | 7,354 | ||||||
M&F Worldwide Corp. ^ | 43,400 | 1,331 | ||||||
Scholastic Corp. | 147,000 | 3,970 | ||||||
Thor Industries, Inc. | 113,140 | 4,040 | ||||||
27,484 | ||||||||
Media - 0.43% | ||||||||
Interpublic Group of Cos., Inc. ^ | 681,400 | 6,072 | ||||||
inVentiv Health, Inc. ^ | 78,600 | 1,810 | ||||||
John Wiley & Sons, Inc. | 118,500 | 5,009 | ||||||
12,891 | ||||||||
Multiline Retail - 1.17% | ||||||||
Big Lots, Inc. ^ | 314,300 | 12,006 | ||||||
BJ’s Wholesale Club, Inc. ^ | 199,560 | 7,639 | ||||||
Dillards, Inc. | 172,600 | 4,847 | ||||||
Saks, Inc. ^ † | 1,079,410 | 10,524 | ||||||
35,016 | ||||||||
Specialty Retail - 5.42% | ||||||||
Aaron Rents, Inc. † | 275,400 | 6,216 | ||||||
Aéropostale, Inc. ^ | 188,400 | 5,471 | ||||||
American Greetings Corp. | 71,500 | 1,756 | ||||||
Bebe Stores, Inc. | 523,290 | 4,312 | ||||||
Buckle, Inc. † | 104,900 | 3,795 | ||||||
Cabela’s, Inc. ^ † | 945,300 | 17,167 | ||||||
Childrens Place Retail Stores, Inc. ^ | 96,650 | 4,428 | ||||||
Foot Locker, Inc. | 838,290 | 12,868 | ||||||
Genesco, Inc. ^ | 47,500 | 1,581 | ||||||
Group 1 Automotive, Inc. ^ | 54,900 | 1,705 | ||||||
Gymboree Corp. ^ | 372,930 | 18,322 | ||||||
Interline Brands, Inc. ^ | 16,200 | 337 | ||||||
Jos. A. Bank Clothiers, Inc. ^ | 91,170 | 5,549 | ||||||
Men’s Wearhouse, Inc. | 660,100 | 15,598 | ||||||
OfficeMax, Inc. ^ | 518,593 | 9,853 | ||||||
Pep Boys, Inc. | 107,100 | 1,342 | ||||||
RadioShack Corp. | 686,800 | 14,801 | ||||||
Regis Corp. | 114,200 | 2,183 | ||||||
Rent-A-Center, Inc. ^ | 884,148 | 22,829 | ||||||
Sonic Automotive, Inc., A Shares ^ † | 306,000 | 3,268 |
See accompanying notes
6
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
Stage Stores, Inc. | 132,220 | $ | 2,016 | |||||
Williams-Sonoma, Inc. | 225,714 | 6,501 | ||||||
161,898 | ||||||||
Textiles & Apparel - 0.93% | ||||||||
Deckers Outdoor Corp. ^ | 17,300 | 2,432 | ||||||
Jones Apparel Group, Inc. | 381,600 | 8,304 | ||||||
Quiksilver, Inc. ^ | 1,230,500 | 6,558 | ||||||
Timberland Co. ^ | 184,070 | 3,957 | ||||||
True Religion Apparel, Inc. ^ | 15,700 | 491 | ||||||
Unifirst Corp. | 33,700 | 1,647 | ||||||
Warnaco Group, Inc. ^ | 32,900 | 1,574 | ||||||
Wolverine World Wide, Inc. | 88,960 | 2,723 | ||||||
27,686 | ||||||||
Total Consumer Discretionary | 418,186 | |||||||
CONSUMER STAPLES - 2.47% | ||||||||
Food & Drug Retailing - 0.87% | ||||||||
Casey’s General Stores, Inc. | 164,893 | 6,370 | ||||||
Flowers Foods, Inc. | 172,300 | 4,542 | ||||||
Nash Finch Co. | 18,900 | 662 | ||||||
Ruddick Corp. | 62,500 | 2,209 | ||||||
Spartan Stores, Inc. | 551,420 | 8,321 | ||||||
Winn-Dixie Stores, Inc. ^ | 313,510 | 3,953 | ||||||
26,057 | ||||||||
Food Products - 1.29% | ||||||||
American Italian Pasta Co. ^ | 43,900 | 1,722 | ||||||
Cal-Maine Foods, Inc. † | 146,000 | 4,873 | ||||||
Chiquita Brands International, Inc. ^ | 100,900 | 1,518 | ||||||
Del Monte Foods Co. | 397,100 | 5,933 | ||||||
Fresh Del Monte Produce, Inc. ^ | 116,900 | 2,440 | ||||||
Hain Celestial Group, Inc. ^ | 181,310 | 3,586 | ||||||
Herbalife Ltd. | 117,700 | 5,679 | ||||||
Lance, Inc. | 85,430 | 1,980 | ||||||
Overhill Farms, Inc. ^ | 316,300 | 1,917 | ||||||
Sanderson Farms, Inc. | 46,000 | 2,607 | ||||||
Smithfield Foods, Inc. ^ | 331,600 | 6,214 | ||||||
38,469 | ||||||||
Personal Products - 0.00% | ||||||||
Alberto-Culver Co. ^ | 3,540 | 102 | ||||||
Tobacco - 0.31% | ||||||||
Alliance One International, Inc. ^ | 237,300 | 1,208 | ||||||
Schweitzer Mauduit International, Inc. | 35,800 | 2,038 | ||||||
Universal Corp. | 112,700 | 5,835 | ||||||
9,081 | ||||||||
Total Consumer Staples | 73,709 | |||||||
ENERGY - 5.07% | ||||||||
Energy Equipment & Services - 3.26% | ||||||||
Atwood Oceanics, Inc. ^ | 144,800 | 5,272 | ||||||
Bristow Group, Inc. ^ | 66,900 | 2,590 | ||||||
Complete Production Services, Inc. ^ | 44,900 | 678 | ||||||
Dresser-Rand Group, Inc. ^ | 165,000 | 5,821 | ||||||
Dril-Quip, Inc. ^ | 108,110 | 6,263 | ||||||
Exterran Holdings, Inc. ^ | 126,100 | 3,676 | ||||||
Global Industries Ltd. ^ | 180,300 | 1,208 | ||||||
Hercules Offshore, Inc. ^ | 73,200 | 290 | ||||||
Matrix Service Co. ^ | 205,590 | 2,185 | ||||||
Oil States International, Inc. ^ | 274,000 | 13,237 | ||||||
Parker Drilling Co. ^ | 245,400 | 1,357 | ||||||
Patterson-UTI Energy, Inc. | 117,150 | 1,791 | ||||||
Rowan Companies, Inc. ^ | 212,100 | 6,321 | ||||||
SEACOR Holdings, Inc. ^ | 65,300 | 5,496 | ||||||
Superior Energy Services, Inc. ^ | 92,500 | 2,503 | ||||||
Tesco Corp. ^ | 219,260 | 2,743 | ||||||
Tidewater, Inc. | 492,180 | 26,386 | ||||||
Unit Corp. ^ | 174,425 | 8,332 | ||||||
Willbros Group, Inc. ^ | 90,800 | 1,139 | ||||||
97,288 | ||||||||
Oil & Gas - 1.81% | ||||||||
Comstock Resources, Inc. ^ | 136,970 | 4,391 | ||||||
CVR Energy, Inc. ^ | 200,400 | 1,701 | ||||||
EXCO Resources, Inc. | 533,600 | 9,898 | ||||||
Frontier Oil Corp. | 487,610 | 7,412 | ||||||
Helix Energy Solutions Group, Inc. ^ | 218,300 | 3,183 | ||||||
Holly Corp. | 279,650 | 7,551 | ||||||
Penn Virginia Corp. | 231,420 | 5,904 | ||||||
St. Mary Land & Exploration Co. | 140,210 | 5,642 | ||||||
Stone Energy Corp. ^ | 520,800 | 8,489 | ||||||
54,171 | ||||||||
Total Energy | 151,459 | |||||||
FINANCIALS - 22.97% | ||||||||
Banks - 7.18% | ||||||||
Associated Banc-Corp | 795,510 | 11,559 | ||||||
Astoria Financial Corp. | 220,200 | 3,554 | ||||||
Bank of the Ozarks, Inc. † | 253,200 | 9,741 | ||||||
Cathay General Bancorp | 157,000 | 1,942 | ||||||
Citizens Republic Bancorp, Inc. ^ | 3,153,690 | 3,942 |
See accompanying notes
7
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
City National Corp. | 200,793 | $ | 12,505 | |||||
Columbia Banking System, Inc. ^ | 32,360 | 727 | ||||||
Community Bank System, Inc. | 31,000 | 765 | ||||||
CVB Financial Corp. † | 477,583 | 5,258 | ||||||
F.N.B. Corp. | 180,200 | 1,679 | ||||||
First Financial Bancorp | 522,400 | 9,983 | ||||||
First Financial Holdings, Inc. ^ | 4,000 | 56 | ||||||
First Horizon National Corp. ^ | 781,851 | 11,063 | ||||||
First Interstate Bancsystem, Inc. | 244,300 | 3,941 | ||||||
First Midwest Bancorp, Inc. | 132,900 | 2,020 | ||||||
First Niagara Financial Group, Inc. | 181,200 | 2,519 | ||||||
FirstMerit Corp. | 281,922 | 6,625 | ||||||
Fulton Financial Corp. | 397,100 | 4,170 | ||||||
Glacier Bancorp, Inc. | 236,350 | 4,370 | ||||||
Home Federal Bancorp Inc. | 171,000 | 2,724 | ||||||
Iberiabank Corp. | 179,200 | 11,046 | ||||||
International Bancshares Corp. | 136,102 | 3,290 | ||||||
MB Financial, Inc. | 105,000 | 2,572 | ||||||
National Penn Bancshares, Inc. | 484,927 | 3,550 | ||||||
NewAlliance Bancshares, Inc. | 413,568 | 5,389 | ||||||
Northwest Bancshares, Inc. | 214,100 | 2,674 | ||||||
Old National Bancorp | 386,470 | 5,183 | ||||||
PacWest Bancorp | 133,960 | 3,216 | ||||||
Popular, Inc. † | 1,438,900 | 5,669 | ||||||
Provident Financial Services, Inc. | 370,640 | 4,885 | ||||||
Southwest Bancorp, Inc. | 152,130 | 2,230 | ||||||
Sterling Bancshares, Inc. | 176,330 | 1,037 | ||||||
Susquehanna Bancshares, Inc. | 123,400 | 1,345 | ||||||
SVB Financial Group ^ | 98,440 | 4,846 | ||||||
Synovus Financial Corp. † | 6,391,300 | 19,238 | ||||||
Umpqua Holdings Corp. | 191,000 | 2,854 | ||||||
United Community Banks, Inc. ^ | 755,000 | 4,409 | ||||||
Washington Federal, Inc. | 498,234 | 10,249 | ||||||
Washington Trust Bancorp, Inc. | 31,400 | 569 | ||||||
Webster Financial Corp. | 584,600 | 12,113 | ||||||
Whitney Holding Corp. | 297,950 | 4,082 | ||||||
Wilmington Trust Corp. | 147,247 | 2,552 | ||||||
Wintrust Financial Corp. | 60,200 | 2,245 | ||||||
214,386 | ||||||||
Diversified Financials - 3.42% | ||||||||
AmeriCredit Corp. ^ | 124,400 | 2,978 | ||||||
Ares Capital Corp. | 549,700 | 8,718 | ||||||
CapitalSource, Inc. | 645,500 | 3,854 | ||||||
Cash America International, Inc. | 300,538 | 11,138 | ||||||
Credit Acceptance Corp. ^ | 121,550 | 5,482 | ||||||
E*Trade Financial Corp. ^ | 3,893,400 | 6,541 | ||||||
Ezcorp, Inc. ^ | 836,974 | 17,334 | ||||||
Federated Investors, Inc. † | 116,800 | 2,817 | ||||||
Fifth Street Finance Corp. | 273,950 | 3,493 | ||||||
Investment Technology Group, Inc. ^ | 626,755 | 10,887 | ||||||
Knight Capital Group, Inc. ^ | 306,750 | 4,770 | ||||||
MF Global Holdings Ltd. ^ | 276,300 | 2,547 | ||||||
National Financial Partners Corp. ^ | 83,800 | 1,290 | ||||||
Nelnet, Inc. | 188,800 | 3,768 | ||||||
Piper Jaffray Co. ^ | 128,123 | 5,043 | ||||||
Symetra Financial Corp. ^ | 549,800 | 7,422 | ||||||
Territorial Bancorp, Inc. | 6,700 | 127 | ||||||
Walter Investment Management Corp. ‡ | 138,600 | 2,513 | ||||||
World Acceptance Corp. ^ † | 41,100 | 1,450 | ||||||
102,172 | ||||||||
Insurance - 9.51% | ||||||||
Allied World Assurance Co. Holdings Ltd. | 103,100 | 4,492 | ||||||
American Equity Investment Life Holding Co. | 214,600 | 2,258 | ||||||
American Financial Group, Inc. | 418,465 | 12,315 | ||||||
American National Insurance Co. | 45,700 | 5,034 | ||||||
AmTrust Financial Services, Inc. | 244,392 | 3,331 | ||||||
Argo Group International Holdings Ltd. | 278,900 | 9,201 | ||||||
Aspen Insurance Holdings Ltd. | 782,730 | 21,118 | ||||||
Assured Guaranty Ltd. | 129,930 | 2,800 | ||||||
CNA Surety Corp. ^ | 105,420 | 1,768 | ||||||
CNO Financial Group, Inc. ^ | 1,967,400 | 11,608 | ||||||
Delphi Financial Group, Inc. | 519,600 | 14,289 | ||||||
Employers Holdings, Inc. | 571,900 | 9,425 | ||||||
Endurance Specialty Holdings Ltd. | 142,500 | 5,251 | ||||||
Enstar Group Ltd. ^ | 15,403 | 1,018 | ||||||
FBL Financial Group, Inc. | 13,300 | 344 | ||||||
First American Corp. | 371,930 | 12,858 | ||||||
Flagstone Reinsurance Holdings Ltd. | 230,500 | 2,570 | ||||||
Hanover Insurance Group, Inc. | 421,910 | 19,007 | ||||||
HCC Insurance Holdings, Inc. | 250,670 | 6,816 | ||||||
Horace Mann Educators Corp. | 98,000 | 1,687 | ||||||
Infinity Property and Casualty Corp. | 51,798 | 2,389 | ||||||
Maiden Holdings Ltd. | 124,300 | 931 | ||||||
Max Capital Group Ltd. | 113,900 | 2,540 | ||||||
Mercury General Corp. | 123,200 | 5,543 | ||||||
MGIC Investment Corp. ^ † | 765,919 | 7,988 | ||||||
Montpelier Re Holdings Ltd. | 125,208 | 2,078 | ||||||
National Western Life Insurance Co. | 2,100 | 401 | ||||||
Navigators Group, Inc. ^ | 198,500 | 7,966 | ||||||
Old Republic International Corp. | 123,400 | 1,852 | ||||||
OneBeacon Insurance Group Ltd. | 49,000 | 795 | ||||||
Platinum Underwriters Holdings Ltd. | 126,600 | 4,711 | ||||||
PMA Capital Corp. ^ | 231,200 | 1,588 | ||||||
Presidential Life Corp. | 104,100 | 1,226 |
See accompanying notes
8
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
ProAssurance Corp. ^ | 73,100 | $ | 4,455 | |||||
Protective Life Corp. | 340,120 | 8,187 | ||||||
Reinsurance Group of America, Inc. | 265,900 | 13,728 | ||||||
RLI Corp. | 42,200 | 2,448 | ||||||
Safety Insurance Group, Inc. | 45,000 | 1,678 | ||||||
Selective Insurance Group, Inc. | 106,500 | 1,780 | ||||||
StanCorp Financial Group, Inc. | 425,550 | 19,133 | ||||||
Torchmark Corp. | 185,700 | 9,942 | ||||||
Tower Group, Inc. | 276,200 | 6,369 | ||||||
United America Indemnity Ltd. ^ | 1,255,543 | 11,928 | ||||||
Unitrin, Inc. | 124,900 | 3,653 | ||||||
Universal American Corp. ^ | 424,400 | 6,515 | ||||||
White Mountains Insurance Group Ltd. | 19,674 | 6,760 | ||||||
283,774 | ||||||||
Real Estate - 2.86% | ||||||||
Alexandria Real Estate Equities, Inc. ‡ | 1,040 | 74 | ||||||
BioMed Realty Trust, Inc. ‡ | 796,880 | 14,750 | ||||||
Brandywine Realty Trust ‡ | 194,890 | 2,483 | ||||||
CapLease, Inc. ‡ | 943,100 | 5,498 | ||||||
CBL & Associates Properties, Inc. ‡ | 413,610 | 6,039 | ||||||
Corrections Corp. of America ^ | 7,340 | 152 | ||||||
DCT Industrial Trust, Inc. ^ ‡ | 252,420 | 1,328 | ||||||
DiamondRock Hospitality Co. ‡ | 396,470 | 4,357 | ||||||
Entertainment Properties Trust ‡ | 192,080 | 8,398 | ||||||
Essex Property Trust, Inc. ‡ | 52,480 | 5,553 | ||||||
Hospitality Properties Trust ‡ | 3,680 | 98 | ||||||
Kilroy Realty Corp. ‡ | 125,830 | 4,412 | ||||||
LaSalle Hotel Properties ‡ | 257,610 | 6,788 | ||||||
Lexington Realty Trust ‡ | 703,570 | 4,981 | ||||||
Mack-Cali Realty Corp. ‡ | 2,250 | 77 | ||||||
MI Developments, Inc. | 448,600 | 5,993 | ||||||
National Health Investors, Inc. ‡ | 83,660 | 3,398 | ||||||
Omega Healthcare Investors, Inc. ‡ | 230,100 | 4,607 | ||||||
Urstadt Biddle Properties, Inc. ‡ | 72,190 | 1,217 | ||||||
U-Store-It Trust ‡ | 392,300 | 3,382 | ||||||
WP Carey & Co. LLC | 52,470 | 1,615 | ||||||
85,200 | ||||||||
Total Financials | 685,532 | |||||||
HEALTH CARE - 9.22% | ||||||||
Biotechnology - 0.11% | ||||||||
Cubist Pharmaceuticals, Inc. ^ | 116,400 | 2,610 | ||||||
Viropharma, Inc. ^ | 45,900 | 584 | ||||||
3,194 | ||||||||
Health Care Equipment & Supplies - 1.12% | ||||||||
CONMED Corp. ^ | 27,800 | 618 | ||||||
Haemonetics Corp. ^ | 116,110 | 6,718 | ||||||
Hillenbrand, Inc. | 77,500 | 1,905 | ||||||
Kensey Nash Corp. ^ | 114,140 | 2,585 | ||||||
Kinetic Concepts, Inc. ^ | 299,600 | 12,973 | ||||||
STERIS Corp. | 257,870 | 8,582 | ||||||
33,381 | ||||||||
Health Care Providers & Services - 6.13% | ||||||||
Air Methods Corp. ^ | 141,130 | 4,669 | ||||||
Almost Family, Inc. ^ | 80,850 | 3,425 | ||||||
Amedisys, Inc. ^ † | 56,500 | 3,253 | ||||||
AMERIGROUP Corp. ^ | 464,780 | 16,844 | ||||||
Amsurg Corp. ^ | 45,100 | 934 | ||||||
Assisted Living Concepts, Inc. ^ | 60,130 | 2,111 | ||||||
Centene Corp. ^ | 546,300 | 12,510 | ||||||
Community Health Systems, Inc. ^ | 73,900 | 3,020 | ||||||
Coventry Health Care, Inc. ^ | 50,500 | 1,199 | ||||||
Gentiva Health Services, Inc. ^ | 522,853 | 14,995 | ||||||
Health Net, Inc. ^ | 225,400 | 4,963 | ||||||
HealthSouth Corp. ^ | 612,900 | 12,540 | ||||||
Healthspring, Inc. ^ | 115,800 | 2,038 | ||||||
Healthways, Inc. ^ | 54,100 | 881 | ||||||
Kindred Healthcare, Inc. ^ | 81,800 | 1,459 | ||||||
LHC Group, Inc. ^ | 23,892 | 815 | ||||||
LifePoint Hospitals, Inc. ^ | 664,380 | 25,366 | ||||||
Magellan Health Services, Inc. ^ | 243,500 | 10,278 | ||||||
MAXIMUS, Inc. | 191,100 | 11,831 | ||||||
Mednax, Inc. ^ | 104,250 | 5,727 | ||||||
Molina Healthcare, Inc. ^ | 53,500 | 1,561 | ||||||
Odyssey HealthCare, Inc. ^ | 644,390 | 13,423 | ||||||
Parexel International Corp. ^ | 282,700 | 6,666 | ||||||
Psychiatric Solutions, Inc. ^ | 82,800 | 2,664 | ||||||
RehabCare Group, Inc. ^ | 294,920 | 8,411 | ||||||
Res-Care, Inc. ^ | 311,900 | 3,630 | ||||||
Sun Healthcare Group, Inc. ^ | 357,890 | 3,200 | ||||||
Triple-S Management Corp. ^ | 51,400 | 935 | ||||||
Universal Health Services, Inc. | 101,240 | 3,758 | ||||||
183,106 | ||||||||
Pharmaceuticals - 1.86% | ||||||||
Endo Pharmaceuticals Holdings, Inc. ^ | 818,870 | 17,933 | ||||||
King Pharmaceuticals, Inc. ^ | 926,800 | 9,083 | ||||||
Medicis Pharmaceutical Corp. | 186,800 | 4,741 | ||||||
NBTY, Inc. ^ | 534,500 | 21,743 | ||||||
Par Pharmaceutical Cos., Inc. ^ | 78,800 | 2,139 | ||||||
55,639 | ||||||||
Total Health Care | 275,320 | |||||||
See accompanying notes
9
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
INDUSTRIALS - 15.92% | ||||||||
Aerospace & Defense - 1.99% | ||||||||
AAR Corp. ^ | 133,700 | $ | 3,260 | |||||
Aircastle Ltd. | 180,169 | 2,164 | ||||||
BE Aerospace, Inc. ^ | 191,800 | 5,698 | ||||||
Ceradyne, Inc. ^ | 57,100 | 1,268 | ||||||
Esterline Technologies Corp. ^ | 167,600 | 9,349 | ||||||
Hawk Corp. ^ | 112,500 | 2,603 | ||||||
Hexcel Corp. ^ | 215,490 | 3,491 | ||||||
Spirit Aerosystems Holdings, Inc. ^ | 505,540 | 11,213 | ||||||
TransDigm Group, Inc. | 15,400 | 851 | ||||||
Triumph Group, Inc. | 205,420 | 15,932 | ||||||
World Fuel Services Corp. | 124,300 | 3,534 | ||||||
59,363 | ||||||||
Building Products - 1.72% | ||||||||
Apogee Enterprises, Inc. | 206,200 | 2,833 | ||||||
Armstrong World Industries, Inc. ^ | 160,940 | 7,009 | ||||||
Crane Co. | 385,250 | 13,846 | ||||||
Drew Industries, Inc. ^ | 125,691 | 3,224 | ||||||
Griffon Corp. ^ | 158,051 | 2,228 | ||||||
Insituform Technologies, Inc. ^ | 400,300 | 9,595 | ||||||
Simpson Manufacturing Co., Inc. | 371,625 | 12,632 | ||||||
51,367 | ||||||||
Commercial Services & Supplies - 6.23% | ||||||||
Administaff, Inc. | 212,800 | 4,711 | ||||||
Atlas Air Worldwide Holdings, Inc. ^ | 36,276 | 2,005 | ||||||
Clean Harbors, Inc. ^ | 114,348 | 7,253 | ||||||
Convergys Corp. ^ | 287,900 | 3,639 | ||||||
Con-way, Inc. | 394,300 | 15,315 | ||||||
Corinthian Colleges, Inc. ^ † | 716,500 | 11,192 | ||||||
CSG Systems International, Inc. ^ | 112,200 | 2,549 | ||||||
Deluxe Corp. | 136,200 | 2,856 | ||||||
Dollar Financial Corp. ^ | 48,400 | 1,133 | ||||||
DynCorp International, Inc. ^ | 646,800 | 11,125 | ||||||
Ennis, Inc. | 96,800 | 1,790 | ||||||
FTI Consulting, Inc. ^ | 163,010 | 6,705 | ||||||
G&K Services, Inc. | 38,620 | 1,062 | ||||||
Heidrick & Struggles International, Inc. | 209,100 | 5,522 | ||||||
Hudson Highland Group, Inc. ^ | 630,300 | 3,536 | ||||||
Kelly Services, Inc. ^ | 152,900 | 2,459 | ||||||
Korn/Ferry International ^ | 550,860 | 8,929 | ||||||
Layne Christensen Co. ^ | 40,852 | 1,119 | ||||||
Lincoln Educational Services Corp. ^ | 34,963 | 873 | ||||||
Manpower, Inc. | 87,100 | 4,886 | ||||||
McGrath Rentcorp | 102,908 | 2,675 | ||||||
PHH Corp. ^ | 552,900 | 12,545 | ||||||
Steelcase, Inc., A Shares | 520,071 | 4,270 | ||||||
Team, Inc. ^ | 154,034 | 2,680 | ||||||
United Stationers, Inc. ^ | 129,100 | 7,903 | ||||||
Valassis Communications, Inc. ^ | 1,279,200 | 41,817 | ||||||
Viad Corp. | 135,310 | 3,166 | ||||||
Waste Connections, Inc. ^ | 190,820 | 6,829 | ||||||
Wright Express Corp. ^ | 156,900 | 5,330 | ||||||
185,874 | ||||||||
Construction & Engineering - 1.15% | ||||||||
Comfort Systems USA, Inc. | 694,745 | 9,782 | ||||||
EMCOR Group, Inc. ^ | 505,000 | 14,423 | ||||||
Granite Construction, Inc. | 175,280 | 5,891 | ||||||
MasTec, Inc. ^ | 164,864 | 2,062 | ||||||
Shaw Group, Inc. ^ | 2,610 | 100 | ||||||
Sterling Construction Co., Inc. ^ | 115,340 | 2,019 | ||||||
34,277 | ||||||||
Electrical Equipment - 0.69% | ||||||||
AZZ, Inc. | 25,700 | 1,044 | ||||||
Hubbell, Inc. | 160,800 | 7,472 | ||||||
Regal-Beloit Corp. | 189,500 | 11,990 | ||||||
20,506 | ||||||||
Electronic Equipment & Instruments - 0.54% | ||||||||
Diebold, Inc. | 511,930 | 16,049 | ||||||
PerkinElmer, Inc. | 4,000 | 100 | ||||||
16,149 | ||||||||
Industrial Conglomerates - 0.08% | ||||||||
Chemed Corp. ^ | 1,370 | 76 | ||||||
US Ecology, Inc. | 151,810 | 2,368 | ||||||
2,444 | ||||||||
Machinery - 2.38% | ||||||||
Applied Industrial Technologies, Inc. | 178,400 | 5,491 | ||||||
Astec Industries, Inc. ^ | 163,100 | 5,402 | ||||||
Chart Industries, Inc. ^ | 18,600 | 428 | ||||||
Colfax Corp. ^ | 86,500 | 1,129 | ||||||
John Bean Technologies Corp. | 70,300 | 1,291 | ||||||
Middleby Corp. ^ | 26,700 | 1,632 | ||||||
Miller Industries, Inc. | 231,100 | 3,305 | ||||||
Mueller Industries, Inc. | 200,700 | 5,951 | ||||||
Oshkosh Corp. ^ | 286,400 | 11,061 | ||||||
Reliance Steel & Aluminum Co. | 28,800 | 1,406 | ||||||
SPX Corp. | 47,300 | 3,305 | ||||||
Terex Corp. ^ | 726,000 | 19,253 | ||||||
Trinity Industries, Inc. | 158,400 | 3,942 | ||||||
Valmont Industries, Inc. | 38,600 | 3,215 | ||||||
Watts Water Technologies, Inc. | 120,500 | 4,275 | ||||||
71,086 | ||||||||
See accompanying notes
10
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
Marine - 0.80% | ||||||||
Cal Dive International, Inc. ^ | 338,070 | $ | 2,218 | |||||
Genco Shipping & Trading Ltd. ^ † | 425,800 | 9,862 | ||||||
Gulfmark Offshore, Inc. ^ | 24,662 | 850 | ||||||
Kirby Corp. ^ | 181,300 | 7,629 | ||||||
Overseas Shipholding Group, Inc. | 68,400 | 3,424 | ||||||
23,983 | ||||||||
Road & Rail - 0.34% | ||||||||
Amerco, Inc. ^ | 21,235 | 1,326 | ||||||
Arkansas Best Corp. | 36,000 | 1,097 | ||||||
GATX Corp. | 197,700 | 6,453 | ||||||
Marten Transport Ltd. ^ | 65,650 | 1,434 | ||||||
10,310 | ||||||||
Total Industrials | 475,359 | |||||||
INFORMATION TECHNOLOGY - 13.17% | ||||||||
Communications Equipment - 1.50% | ||||||||
Adaptec, Inc. ^ | 162,000 | 501 | ||||||
Arris Group, Inc. ^ | 585,350 | 7,194 | ||||||
Black Box Corp. | 395,600 | 12,339 | ||||||
Harmonic, Inc. ^ | 668,910 | 4,575 | ||||||
Harte Hanks, Inc. | 97,600 | 1,405 | ||||||
Interdigital, Inc. ^ | 455,900 | 12,615 | ||||||
Sonus Networks, Inc. ^ | 1,274,697 | 3,302 | ||||||
Tekelec, Inc. ^ | 157,160 | 2,849 | ||||||
44,780 | ||||||||
Computers & Peripherals - 1.25% | ||||||||
Avid Technology, Inc. ^ | 296,020 | 4,322 | ||||||
Electronics for Imaging, Inc. ^ | 361,700 | 4,648 | ||||||
Hypercom Corp. ^ | 645,500 | 2,679 | ||||||
Ingram Micro, Inc. ^ | 852,400 | 15,479 | ||||||
Lexmark International, Inc. ^ | 156,900 | 5,813 | ||||||
Mercury Computer Systems, Inc. ^ | 351,300 | 4,518 | ||||||
37,459 | ||||||||
Electronic Components - 0.57% | ||||||||
Plexus Corp. ^ | 354,700 | 13,141 | ||||||
Thomas & Betts Corp. ^ | 93,510 | 3,922 | ||||||
17,063 | ||||||||
Electronic Equipment & Instruments - 2.43% | ||||||||
Analogic Corp. | 79,680 | 3,810 | ||||||
Arrow Electronics, Inc. ^ | 246,700 | 7,524 | ||||||
AVX Corp. | 286,600 | 4,428 | ||||||
Benchmark Electronics, Inc. ^ | 432,700 | 9,364 | ||||||
Coherent, Inc. ^ | 9,700 | 365 | ||||||
Littelfuse, Inc. ^ | 416,600 | 17,593 | ||||||
Methode Electronics, Inc. | 754,800 | 8,378 | ||||||
Multi-Fineline Electronix, Inc. ^ | 47,350 | 1,227 | ||||||
Vishay Intertechnology, Inc. ^ | 1,921,100 | 19,999 | ||||||
72,688 | ||||||||
Internet Software & Services - 1.04% | ||||||||
DealerTrack Holdings, Inc. ^ | 289,539 | 4,416 | ||||||
EarthLink, Inc. | 502,100 | 4,529 | ||||||
Ebix, Inc. ^ † | 57,000 | 927 | ||||||
InterActiveCorp ^ | 467,800 | 10,488 | ||||||
SonicWALL, Inc. ^ | 280,740 | 2,844 | ||||||
United Online, Inc. | 239,180 | 1,906 | ||||||
Websense, Inc. ^ | 254,860 | 5,803 | ||||||
30,913 | ||||||||
It Consulting & Services - 1.95% | ||||||||
Broadridge Financial Solutions, Inc. | 238,427 | 5,677 | ||||||
CACI International, Inc. ^ | 222,800 | 10,567 | ||||||
ManTech International Corp. ^ | 219,100 | 9,866 | ||||||
Ness Technologies, Inc. ^ | 458,500 | 2,966 | ||||||
Stanley, Inc. ^ | 32,660 | 1,033 | ||||||
SYNNEX Corp. ^ | 431,200 | 11,824 | ||||||
Syntel, Inc. | 70,707 | 2,554 | ||||||
Tech Data Corp. ^ | 262,100 | 11,244 | ||||||
Unisys Corp. ^ | 85,000 | 2,382 | ||||||
58,113 | ||||||||
Semiconductor Equipment & Products - 1.66% | ||||||||
Amkor Technology, Inc. ^ † | 366,400 | 2,763 | ||||||
Brooks Automation, Inc. ^ | 1,244,200 | 12,094 | ||||||
Cymer, Inc. ^ | 145,820 | 4,980 | ||||||
Entropic Communications, Inc. ^ | 391,520 | 2,067 | ||||||
Fairchild Semiconductor International, Inc. ^ | 159,400 | 1,788 | ||||||
Formfactor, Inc. ^ | 237,360 | 3,563 | ||||||
International Rectifier Corp. ^ | 53,000 | 1,220 | ||||||
MKS Instruments, Inc. ^ | 303,339 | 6,880 | ||||||
Novellus Systems, Inc. ^ | 4,550 | 119 | ||||||
ON Semiconductor Corp. ^ | 431,900 | 3,429 | ||||||
Teradyne, Inc. ^ | 453,990 | 5,552 | ||||||
Tessera Technologies, Inc. ^ | 245,000 | 4,969 | ||||||
Varian Semiconductor Equipment Associates, Inc. ^ | 3,340 | 110 | ||||||
49,534 | ||||||||
Software - 2.77% | ||||||||
Aspen Technology, Inc. ^ | 306,460 | 3,607 | ||||||
Cadence Design Systems, Inc. ^ | 689,100 | 5,141 | ||||||
Cognex Corp. | 569,900 | 11,917 | ||||||
DST Systems, Inc. | 76,600 | 3,252 | ||||||
Fair Isaac Corp. | 75,000 | 1,580 | ||||||
FARO Technologies, Inc. ^ | 167,500 | 4,223 |
See accompanying notes
11
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
infoGROUP, Inc. ^ | 1,148,700 | $ | 9,201 | |||||
JDA Software Group, Inc. ^ | 566,150 | 16,362 | ||||||
Lawson Software, Inc. ^ | 927,500 | 7,197 | ||||||
Mentor Graphics Corp. ^ | 1,184,700 | 10,650 | ||||||
Netscout Systems, Inc. ^ | 216,810 | 3,148 | ||||||
Novell, Inc. ^ | 591,700 | 3,319 | ||||||
Synopsys, Inc. ^ | 5,480 | 124 | ||||||
TradeStation Group, Inc. ^ | 351,640 | 2,940 | ||||||
82,661 | ||||||||
Total Information Technology | 393,211 | |||||||
MATERIALS - 5.65% | ||||||||
Chemicals - 1.66% | ||||||||
H.B. Fuller Co. | 110,000 | 2,579 | ||||||
Innophos Holdings, Inc. | 42,700 | 1,217 | ||||||
NewMarket Corp. | 33,800 | 3,718 | ||||||
OM Group, Inc. ^ | 71,900 | 2,714 | ||||||
PolyOne Corp. ^ | 1,618,100 | 18,301 | ||||||
RPM International, Inc. | 697,200 | 15,394 | ||||||
Stepan Co. | 18,400 | 1,394 | ||||||
Westlake Chemical Corp. † | 151,019 | 4,241 | ||||||
49,558 | ||||||||
Construction Materials - 0.38% | ||||||||
Tutor Perini Corp. ^ | 459,200 | 11,145 | ||||||
Containers & Packaging - 1.24% | ||||||||
Greif, Inc. | 153,600 | 9,090 | ||||||
Jarden Corp. | 212,600 | 6,829 | ||||||
Packaging Corp. of America | 199,680 | 4,938 | ||||||
Pactiv Corp. ^ | 179,200 | 4,553 | ||||||
Rock-Tenn Co. | 78,500 | 4,050 | ||||||
Temple-Inland, Inc. | 324,640 | 7,571 | ||||||
37,031 | ||||||||
Metals & Mining - 1.85% | ||||||||
Carpenter Technology Corp. | 153,530 | 6,029 | ||||||
Century Aluminum Co. ^ | 172,500 | 2,325 | ||||||
Coeur d’Alene Mines Corp. ^ | 428,870 | 7,685 | ||||||
Compass Minerals International, Inc. | 47,900 | 3,607 | ||||||
Gibraltar Industries, Inc. ^ | 433,339 | 6,509 | ||||||
Haynes International, Inc. | 175,400 | 6,299 | ||||||
Kaiser Aluminum Corp. † | 356,200 | 14,316 | ||||||
RTI International Metals, Inc. ^ | 258,075 | 6,981 | ||||||
Universal Stainless & Alloy ^ | 66,900 | 1,561 | ||||||
55,312 | ||||||||
Paper & Forest Products - 0.52% | ||||||||
Clearwater Paper Corp. ^ | 20,200 | 1,287 | ||||||
Domtar Corp. ^ | 49,180 | 3,484 | ||||||
Louisiana-Pacific Corp. ^ | 761,250 | 8,952 | ||||||
Wausau Paper Corp. ^ | 213,140 | 1,886 | ||||||
15,609 | ||||||||
Total Materials | 168,655 | |||||||
TELECOMMUNICATION SERVICES - 0.33% | ||||||||
Diversified Telecommunication Services - 0.33% | ||||||||
Aviat Networks, Inc. ^ | 286,910 | 1,865 | ||||||
Cincinnati Bell, Inc. ^ | 551,500 | 1,859 | ||||||
EchoStar Corp. ^ | 88,100 | 1,692 | ||||||
Loral Space & Communications, Inc. ^ | 11,100 | 478 | ||||||
Neutral Tandem, Inc. ^ | 228,450 | 3,872 | ||||||
Total Telecommunication Services | 9,766 | |||||||
UTILITIES - 5.11% | ||||||||
Electric Utilities - 3.69% | ||||||||
Avista Corp. | 135,200 | 2,924 | ||||||
Black Hills Corp. | 115,000 | 3,782 | ||||||
El Paso Electric Co. ^ | 340,810 | 7,242 | ||||||
Empire District Electric Co. | 396,250 | 7,731 | ||||||
Great Plains Energy, Inc. | 951,300 | 18,389 | ||||||
IDACORP, Inc. | 169,700 | 6,123 | ||||||
OGE Energy Corp. | 362,800 | 15,013 | ||||||
Pike Electric Corp. ^ | 271,070 | 2,914 | ||||||
Pinnacle West Capital Corp. | 185,110 | 6,912 | ||||||
PNM Resources, Inc. | 474,900 | 6,454 | ||||||
Portland General Electric Co. | 883,330 | 17,561 | ||||||
Westar Energy, Inc. | 635,600 | 15,057 | ||||||
110,102 | ||||||||
Gas Utilities - 0.98% | ||||||||
AGL Resources, Inc. | 146,540 | 5,790 | ||||||
Atmos Energy Corp. | 544,640 | 16,111 | ||||||
Energen Corp. | 2,300 | 112 | ||||||
Southern Union Co. | 190,600 | 4,980 | ||||||
Southwest Gas Corp. | 67,100 | 2,087 | ||||||
UGI Corp. ^ | 3,690 | 101 | ||||||
29,181 | ||||||||
Multi-Utilities - 0.44% | ||||||||
NV Energy, Inc. | 1,065,698 | 13,310 | ||||||
Total Utilities | 152,593 | |||||||
Total Common Stocks | 2,814,377 | |||||||
SHORT TERM INVESTMENTS - 6.10% | ||||||||
American Beacon U.S. Government Money Market Select Fund # | 20,000,000 | 20,000 |
See accompanying notes
12
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
JPMorgan U.S. Government Money Market Fund | 146,360,643 | $ | 146,361 |
Par | ||||||||
Amount | ||||||||
U.S. Treasury, | ||||||||
0.14%, Due 6/17/2010 § | $ | 4,468 | 4,467 | |||||
0.14%, Due 7/15/2010 § | 11,384 | 11,381 | ||||||
Total Short Term Investments | 182,209 |
Shares | ||||||||
SECURITIES LENDING COLLATERAL - 3.72% | ||||||||
American Beacon U.S. Government Money Market Select Fund | 96,344,976 | 96,345 | ||||||
Wells Fargo Advantage Government Money Market Fund | 14,625,920 | 14,625 | ||||||
Total Securities Lending Collateral | 110,970 | |||||||
TOTAL INVESTMENTS 104.10% - (Cost $2,592,966) | 3,107,556 | |||||||
LIABILITIES, NET OF OTHER ASSETS - (4.10%) | (122,442 | ) | ||||||
TOTAL NET ASSETS - 100.00% | $ | 2,985,114 |
Percentages are stated as a percent of net assets. | ||
^ | Non-income producing security. | |
† | All or a portion of this security is on loan at April 30, 2010. | |
‡ | REIT — Real Estate Investment Trust | |
# | The Fund is affiliated by having the same investment advisor. | |
§ | At April 30, 2010, security pledged as collateral for open futures contracts. |
Futures Contracts
(dollars in thousands)
Unrealized | ||||||||||||||||
Number of | Expiration | Market | Appreciation/ | |||||||||||||
Contracts | Date | Value | (Depreciation) | |||||||||||||
Emini Mini Russell | 2,458 | Jun 2010 | $ | 175,870 | $ | 5,767 | ||||||||||
See accompanying notes
13
American Beacon Small Cap Value FundSM
Statement of Assets and Liabilities
April 30, 2010 (Unaudited) (in thousands except share and per share amounts)
Assets: | ||||
Investments in unaffiliated securities, at value A C | $ | 2,991,211 | ||
Investments in affiliated securities, at value B | 116,345 | |||
Receivable for investments sold | 42,557 | |||
Dividends and interest receivable | 701 | |||
Receivable for fund shares sold | 6,925 | |||
Receivable for tax reclaims | 2 | |||
Prepaid expenses | 77 | |||
Total assets | 3,157,818 | |||
Liabilities: | ||||
Payable for investments purchased | 48,060 | |||
Payable upon return of securities loaned | 110,970 | |||
Payable for fund shares redeemed | 2,118 | |||
Payable for variation margin on open futures contracts | 6,561 | |||
Management and investment advisory fees payable (Note 2) | 3,663 | |||
Administrative service and service fees payable | 838 | |||
Professional fees payable | 14 | |||
Other liabilities | 480 | |||
Total liabilities | 172,704 | |||
Net assets | $ | 2,985,114 | ||
Analysis of Net Assets: | ||||
Paid-in-capital | 2,968,957 | |||
Undistributed net investment income | 3,210 | |||
Accumulated net realized loss | (507,409 | ) | ||
Unrealized appreciation of investments, futures contracts, and foreign currency | 520,356 | |||
Net assets | $ | 2,985,114 | ||
Shares outstanding (no par value): | ||||
Institutional Class | 82,635,863 | |||
Y Class | 46,641 | |||
Investor Class | 49,941,726 | |||
Advisor Class | 2,032,465 | |||
Retirement Class | 507 | |||
AMR Class | 29,017,431 | |||
Net asset value, offering and redemption price per share: | ||||
Institutional Class | $ | 18.39 | ||
Y Class | $ | 18.32 | ||
Investor Class | $ | 17.97 | ||
Advisor Class | $ | 17.92 | ||
Retirement Class | $ | 17.83 | ||
AMR Class | $ | 18.28 | ||
A Cost of investments in unaffiliated securities | $ | 2,476,621 | ||
B Cost of investments in affiliated securities | $ | 116,345 | ||
C Market value of securities on loan | $ | 108,071 |
See accompanying notes
14
American Beacon Small Cap Value FundSM
Statement of Operations
Six Months ended April 30, 2010 (Unaudited) (in thousands)
Six Months ended April 30, 2010 (Unaudited) (in thousands)
Investment Income: | ||||
Dividend income from unaffiliated securities (net of foreign taxes)* | $ | 16,031 | ||
Dividend income from affiliated securities | 7 | |||
Interest income | 4 | |||
Income derived from securities lending, net | 195 | |||
Total investment income | 16,237 | |||
Expenses: | ||||
Management and investment advisory fees (Note 2) | 5,701 | |||
Administrative service fees (Note 2): | ||||
Institutional Class | 1,862 | |||
Investor Class | 1,178 | |||
Advisor Class | 46 | |||
AMR Class | 85 | |||
Transfer agent fees: | ||||
Institutional Class | 34 | |||
Investor Class | 26 | |||
Advisor Class | 1 | |||
AMR Class | 14 | |||
Custody and fund accounting fees | 181 | |||
Professional fees | 46 | |||
Registration fees and expenses | 45 | |||
Service fees: | ||||
Investor Class (Note 2) | 1,388 | |||
Advisor Class (Note 2) | 38 | |||
Distribution fees — Service Class (Note 2) | 38 | |||
Prospectus and shareholder reports | 183 | |||
Trustee fees | 75 | |||
Other expenses | 78 | |||
Total expenses | 11,019 | |||
Net investment income | 5,218 | |||
Realized and unrealized gain (loss) on investments: | ||||
Net realized gain (loss) from: | ||||
Investments | 102,553 | |||
Commission recapture (Note 1) | 79 | |||
Futures contracts | 24,617 | |||
Change in net unrealized appreciation or depreciation of: | ||||
Investments | 458,080 | |||
Futures contracts | 11,735 | |||
Net gain on investments | 597,064 | |||
Net increase in net assets resulting from operations | $ | 602,282 | ||
* Foreign taxes | $ | 10 |
See accompanying notes
15
American Beacon Small Cap Value FundSM
Statement of Changes in Net Assets (in thousands)
Six Months | Year Ended | |||||||
Ended | October 31, | |||||||
April 30, 2010 | 2009 | |||||||
(unaudited) | ||||||||
Increase (Decrease) in Net Assets: | ||||||||
Operations: | ||||||||
Net investment income | $ | 5,218 | $ | 13,566 | ||||
Net realized gain (loss) on investments, futures contracts, and foreign currency transactions | 127,249 | (354,995 | ) | |||||
Change in net unrealized appreciation of investments, futures contracts, and foreign currency translations | 469,815 | 625,488 | ||||||
Net increase in net assets resulting from operations | 602,282 | 284,059 | ||||||
Distributions to Shareholders: | ||||||||
Net investment income: | ||||||||
Institutional Class | (6,896 | ) | (13,600 | ) | ||||
Investor Class | (2,275 | ) | (8,841 | ) | ||||
Advisor Class | — | (311 | ) | |||||
AMR Class | (2,187 | ) | (3,927 | ) | ||||
Net distributions to shareholders | (11,358 | ) | (26,679 | ) | ||||
Capital Share Transactions: | ||||||||
Proceeds from sales of shares | 600,588 | 529,412 | ||||||
Reinvestment of dividends and distributions | 11,249 | 26,349 | ||||||
Cost of shares redeemed | (277,092 | ) | (523,004 | ) | ||||
Net increase in net assets from capital share transactions | 334,745 | 32,757 | ||||||
Net increase in net assets | 925,669 | 290,137 | ||||||
Net Assets: | ||||||||
Beginning of period | 2,059,445 | 1,769,308 | ||||||
End of Period * | $ | 2,985,114 | $ | 2,059,445 | ||||
* Includes undistributed net investment income of | $ | 3,210 | $ | 9,850 |
See accompanying notes
16
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
1. Organization and Significant Accounting Policies
American Beacon Funds (the “Trust”) is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, (the “Act”) as a diversified, open-end management investment company. These financial statements and notes to the financial statements relate to the American Beacon Small Cap Value Fund (the “Fund”), a series of the Trust.
American Beacon Advisors, Inc. (the “Manager”) is a wholly-owned subsidiary of Lighthouse Holdings, Inc. and was organized in 1986 to provide business management, advisory, administrative and asset management consulting services to the Trust and other investors.
Class Disclosure
The Fund has multiple classes of shares designed to meet the needs of different groups of investors. The following table sets forth the differences amongst the classes:
Class: | Offered to: | |
Institutional Class | Investors making an initial investment of $250,000 | |
Y Class | Investors making an initial investment of $100,000 | |
Investor Class | General public and investors investing through an intermediary | |
Advisor Class | Investors investing through an intermediary | |
Retirement Class | Investors investing through an intermediary | |
AMR Class | Investors in the tax-exempt retirement and benefit plans of the Manager, AMR Corporation, and its affiliates |
Administrative service fees, service fees and distribution fees vary amongst the classes as described more fully in footnote 2.
Investment income, net capital gains (losses) and all expenses incurred by the Fund are allocated based on the relative net assets of each class, except for service fees and certain other fees and expenses related solely to one class of shares.
Seurity Valuation
Investments are valued at the close of the New York Stock Exchange (the “Exchange”), normally 4 p.m. ET, each day that the Exchange is open for business. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade.
Debt securities (other than short-term securities) normally are valued on the basis of prices provided by an independent pricing service and may take into account appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. The prices of debt securities may be determined using quotes obtained from brokers.
Investments in mutual funds are valued at the closing net asset value per share of the mutual fund on the day of valuation. Investment grade short-term obligations with 60 days or less to maturity are valued using the amortized cost method, which approximates market value.
Securities for which market prices are not readily available or are not reflective of the fair value of the security, as determined by the Manager, will be priced at fair value following procedures approved by the Board of Trustees (the “Board”).
17
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
Valuation Inputs
Various inputs may be used to determine the value of the Fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1 — | Quoted prices in active markets for identical securities. |
Level 2 — | Prices determined using other significant observable inputs. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others. |
Level 3 — | Prices determined using other significant unobservable inputs. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
The Fund’s investments are summarized by level based on the inputs used to determine their values. As of April 30, 2010, the Fund’s investments were classified as follows: (in thousands)
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Common Stock | $ | 2,814,377 | $ | — | $ | — | $ | 2,814,377 | ||||||||
Securities Lending Collateral | 110,970 | — | — | 110,970 | ||||||||||||
Short Term Investments | 166,361 | 15,848 | — | 182,209 | ||||||||||||
Total Investments in Securities | $ | 3,091,708 | $ | 15,848 | $ | — | $ | 3,107,556 | ||||||||
Futures Contracts | $ | 175,870 | — | — | $ | 175,870 |
Security Transactions and Investment Income
Security transactions are recorded on the trade date of the security purchase or sale. The Fund may purchase securities with delivery or payment to occur at a later date. At the time the Fund enters into a commitment to purchase a security, the transaction is recorded, and the value of the security is reflected in the net asset value. The value of the security may vary with market fluctuations.
Dividend income, net of foreign taxes, is recorded on the ex-dividend date. Interest income is earned from settlement date, recorded on the accrual basis, and adjusted, if necessary, for accretion of discounts and amortization of premiums. For financial and tax reporting purposes, realized gains and losses are determined on the basis of specific lot identification.
Futures Contracts
Futures contracts are contracts to buy or sell a standard quantity of securities at a specified price on a future date. The Fund may enter into financial futures contracts as a method for keeping assets readily convertible to cash if needed to meet shareholder redemptions or for other needs while maintaining exposure to the stock or bond market, as applicable. The primary risks associated with the use of futures contracts are the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Upon entering into a futures contract, the Fund is required to set aside or deposit with a broker an amount, termed the initial margin, which typically represents 5% of the face value of the futures contract. The Fund reflects this amount on the Schedule of Investments as a U.S. Treasury Bill held as collateral for futures contracts. Payments to and from the broker, known as variation margin, are required to be made on a daily basis as the price of the futures contract fluctuates. Changes in initial settlement values are accounted for as unrealized appreciation (depreciation) until the contracts are terminated, at which time realized gains and losses are recognized. Futures contracts are valued at the most recent settlement price established each day by the exchange on which they are traded.
18
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2010 (in thousands)
Liability | ||||||
Statement of Assets and Liabilities | Derivatives | Fair Value | ||||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* | $ | 5,767 |
Effect of derivative instruments not accounted for as hedging instruments during the year ended April 30, 2010 (in thousands)
Statement of Operations | Derivative | Fair Value | ||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 24,617 | |||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | $ | 11,735 |
* | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments footnotes. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Dividends to Shareholders
Dividends from net investment income of the Fund normally will be declared and paid at least annually. Distributions, if any, of net realized capital gains are generally paid at least annually and recorded on the ex-dividend date.
Commission Recapture
The Fund has established brokerage commission recapture arrangements with certain brokers or dealers. If the Fund’s investment advisor chooses to execute a transaction through a participating broker, the broker rebates a portion of the commission back to the Fund. Any collateral benefit received through participation in the commission recapture program is directed exclusively to the Fund. This amount is reported with the net realized gain in the Fund’s Statement of Operations.
Allocation of Income, Expenses, Gains and Losses
Income, expenses (other than those attributable to a specific class), gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimated.
Other
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liability arising out of the performance of their duties to the Trust. In the normal course of business, the Trust enters into contracts that provide indemnification to the other party or parties against potential costs or liabilities. The Trust’s maximum exposure under these arrangements is dependent on claims that may be made in the future and, therefore, cannot be estimated. The Trust has had no prior claims or losses pursuant to any such agreement.
19
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
2. Transactions with Affiliates
Management Agreement
The Trust and the Manager are parties to a Management Agreement that obligates the Manager to provide or oversee the provision of investment advisory and portfolio management and securities lending services. Investment assets of the Fund are managed by multiple investment advisors that have entered into separate investment advisory agreements with the Manager. As compensation for performing the duties required under the Management Agreement, the Manager receives from the Fund an annualized fee equal to 0.05% of the average daily net assets plus amounts paid by the Manager to the investment advisors hired by the Manager to direct investment activities of the Funds. Management fees paid during the six months ended April 30, 2010 were as follows (dollars in thousands):
Amounts paid to | ||||||
Management Fee Rate | Management Fee | Investment Advisors | Net Amounts Retained by Manager | |||
0.30%-0.55% | $5,701 | $5,101 | $600 |
As compensation for services provided by the Manager in connection with securities lending activities, the Fund pays to the Manager, with respect to cash collateral posted by borrowers, a fee up to 25% of the net monthly interest income (the gross interest income earned by the investment of cash collateral, less the amount paid to borrowers and related expenses) from such activities and, with respect to loan fees paid by borrowers when a borrower posts collateral other than cash, a fee up to 25% of such loan fees. This fee is netted against securities lending income in the Statement of Operations. During the six months ended April 30, 2010, securities lending fees paid to the Manager by the Fund were $35,297.
Administrative Services Agreement
The Manager and the Trust entered into an Administrative Services Agreement which obligates the Manager to provide or oversee administrative services to the Fund. As compensation for performing the duties required under the Administrative Services Agreement, the Manager receives an annualized fee of 0.30% of the average daily net assets of the Institutional, Y, Investor, Advisor, and Retirement Classes of the Fund and 0.05% of the average daily net assets of the AMR Class of the Fund.
Distribution Plans
The Fund, except for the Advisor and Retirement Classes of the Fund, has adopted a “defensive” Distribution Plan (the “Plan”) in accordance with Rule 12b-1 under the Act, pursuant to which no fees may be charged to the Fund for distribution purposes. However, the Plan authorizes the management and administrative service fees received by the Manager and the investment advisors hired by the Manager to be used for distribution purposes. Under this Plan, the Fund does not intend to compensate the Manager or any other party, either directly or indirectly, for the distribution of Fund shares.
A separate Distribution Plan (the “Distribution Plan”) has been adopted pursuant to Rule 12b-1 under the Act for the Advisor and Retirement Classes of the Fund. Under the Distribution Plan, as compensation for distribution assistance, the Manager receives an annual fee of 0.25% of the average daily net assets of the Advisor Class and 0.50% of the average daily net assets of the Retirement Class. The fee will be payable without regard to whether the amount of the fee is more or less than the actual expenses incurred in a particular month by the Manager for distribution assistance.
Service Plans
The Manager and the Trust entered into Service Plans that obligate the Manager to oversee additional shareholder servicing of the Y, Investor, Advisor, and Retirement Classes. As compensation for performing the
20
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
duties required under the Service Plans, the Manager receives 0.10% of the average daily net assets of the Y Class, 0.25% of the average daily net assets of the Advisor, and Retirement Classes, and up to 0.375% of the average daily net assets of the Investor Class of the Fund.
Brokerage Commissions
Affiliated entities of an investment advisor to the Fund received net commissions on purchases and sales of the Fund’s portfolio securities totaling $3,546 for the six months ended April 30, 2010.
Investment in Affiliated Funds
The Fund may invest in the American Beacon Money Market Select Fund (the “MM Select Fund”) and the American Beacon US Government Money Market Select Fund (the “USG Select Fund”) (collectively, the “Select Funds”). Cash collateral received by the Fund in connection with securities lending may be invested in the Select Funds. The Select Funds and the Fund have the same investment advisor and therefore, are considered to be affiliated. The Manager serves as investment advisor to the Select Funds and receives from the Select Funds an annualized fee of 0.09% of the average daily net assets of the Select Funds. During the six months ended April 30, 2010, the Manager earned fees from the Select Funds totaling $9,562 on the Fund’s direct investment in the Select Funds and $32,218 from the Fund’s sec urities lending collateral invested in the Select Funds.
Interfund Lending Program
Pursuant to an exemptive order by the Securities Exchange Commission (“SEC”), the Fund, along with other registered investment companies having management contracts with the Manager, may participate in an interfund lending program as a borrower. This program provides an alternative credit facility allowing the Fund to borrow from other participating Funds. During the six months ended April 30, 2010, the Fund did not utilize the credit facility.
Expense Reimbursement Plan
The Fund has adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of fees waived or expenses reimbursed for a period of up to three years. However, reimbursement will occur only if the Class’ average net assets have grown or expenses have declined sufficiently to allow reimbursement without causing its expense ratio to exceed the previously agreed upon contractual expense limit. For the six months ended April 30, 2010, there were no fees waived or reimbursed expenses subject to potential recovery.
3. Federal Income and Excise Taxes
It is the policy of the Fund to comply with the requirements of Subchapter M of the Internal Revenue Code and to distribute substantially all net investment income as well as any net realized capital gains on the sale of investments. Therefore, no federal income or excise tax provision is required.
The Fund does not have any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the four year period ended October 31, 2009 remains subject to examination by the Internal Revenue Service. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statement of Operations.
Dividends are categorized in accordance with income tax regulations which may treat certain transactions differently than U.S. generally accepted accounting principles. Accordingly, the character of distributions and composition of net assets for tax purposes may differ from those reflected in the accompanying financial statements.
21
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
The tax character of distributions paid during the six months ended April 30, 2010 and the fiscal year ended October 31, 2009 were as follows (in thousands):
Six Months Ended | Year Ended | |||||||
April 30, | October 31, | |||||||
2010 | 2009 | |||||||
(unaudited) | ||||||||
Distributions paid from: | ||||||||
Ordinary income* | ||||||||
Institutional Class | $ | 6,896 | $ | 13,600 | ||||
Investor Class | 2,275 | 8,841 | ||||||
Advisor Class | — | 311 | ||||||
AMR Class | 2,187 | 3,927 | ||||||
Long-term capital gain | ||||||||
Institutional Class | — | — | ||||||
Investor Class | — | — | ||||||
Advisor Class | — | — | ||||||
AMR Class | — | — | ||||||
Total distributions paid | $ | 11,358 | $ | 26,679 |
* | For tax purposes, short-term capital gains are considered ordinary income distributions. |
As of April 30, 2010, the components of distributable earnings on a tax basis were as follows (in thousands):
Cost basis of investments for federal income tax purposes | $ | 2,639,839 | ||
Unrealized appreciation | 542,834 | |||
Unrealized depreciation | (75,117 | ) | ||
Net unrealized appreciation/(depreciation) | 467,717 | |||
Undistributed ordinary income | 1,184 | |||
Undistributed long-term gain/(loss) | (458,511 | ) | ||
Undistributed long-term gain/(loss) | 5,767 | |||
Distributable earnings | $ | 16,157 |
Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences. The temporary differences between financial reporting and tax-basis reporting of unrealized appreciation/(depreciation) are attributable primarily to the tax deferral of losses from wash sales, the realization for tax purposes of unrealized gains/(losses) on certain derivative instruments, and reclassifications of income from real estate investment securities.
Due to inherent differences in the recognition of income, expenses and realized gains/losses under U.S. generally accepted accounting principles and federal income tax regulations, permanent differences between book and tax reporting have been identified and appropriately reclassified on the Statement of Assets and Liabilities.
Accordingly, the following amounts represent current year permanent differences derived from reclassifications of income from real estate investment securities, foreign currency, and dividend reclasses that have been reclassified as of April 30, 2010 (in thousands):
Paid-in-capital | $ | 3 | ||
Undistributed net investment income | (500 | ) | ||
Accumulated net realized gain (loss) | 498 | |||
Unrealized appreciation (depreciation) of investments, futures contracts and foreign currency | (1 | ) |
At April 30, 2010, the capital loss carry forward position of the Fund for federal income tax purposes was $129,137 and $323,607 expiring in 2016 and 2017, respectively.
The Fund utilized $130,831 of net capital loss carryovers for the six months ended April 30, 2010.
22
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
4. Investment Transactions
The aggregate cost of purchases and proceeds from sales of investments, other than short-term obligations, for the six months ended April 30, 2010 were (in thousands) $966,580 and $670,011, respectively.
A summary of the Fund’s direct transactions in the Select Funds for the six months ended April 30, 2010 is set forth below (in thousands):
October 31, 2009 | April 30, 2010 | |||||||||||||||
Affiliate | Shares/Market Value | Purchases | Sales | Shares/Market Value | ||||||||||||
USG Select Fund | $ | 20,000 | $ | 5,000 | $ | 5,000 | $ | 20,000 |
5. Securities Lending
The Fund may lend its securities to qualified financial institutions, such as certain broker-dealers, to earn additional income. The borrowers are required to secure their loans continuously with collateral in an amount at least equal to the fair value of the securities loaned, initially in an amount at least equal to 102% of the fair value of domestic securities loaned and 105% of the fair value of international securities loaned. Collateral is monitored and marked to market daily. Daily mark to market amounts are required to be paid to the borrower or received from the borrower by the end of the following business day. This one day settlement for mark to market amounts may result in the collateral being temporarily less than the value of the securities on loan or temporarily more than the required minimum collateral.
To the extent that a loan is collateralized by cash, such cash collateral shall be invested by the securities lending agent (the “Agent”) in money market mutual funds, and other short-term investments, provided the investments meet certain quality and diversification requirements.
Securities lending income is generated from the demand premium (if any) paid by the borrower to borrow a specific security and from the return on investment of cash collateral, reduced by negotiated rebate fees paid to the borrower and transaction costs. To the extent that a loan is secured by non-cash collateral, securities lending income is generated as a demand premium reduced by transaction costs. The Fund, the Agent, and the Manager retain 75%, 15%, and 10%, respectively, of the income generated from securities lending.
While securities are on loan, the Fund continues to receive any income associated with that security and any gain or loss in the market price that may occur during the term of the loan.
Securities lending transactions pose certain risks to the Fund, including that the borrower may not provide additional collateral when required or return the securities when due, that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower, that non-cash collateral may be subject to legal constraints in the event of a borrower bankruptcy, and that the cash collateral investments could become illiquid and unable to be used to return collateral to the borrower. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the cash collateral available for return to the borrower and any action which impairs its ability to liquidate non-cash collateral to satisfy a borrower default.
As of April 30, 2010, the value of outstanding securities on loan and the value of collateral was as follows (in thousands):
Market Value of | ||||
Securities on Loan | Non-Cash Collateral | Cash Collateral Posted by Borrower | ||
$108,071 | $— | $110,970 |
23
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2010 (Unaudited)
Cash collateral is listed in the Fund’s Schedule of Investments and is shown on the Statement of Assets and Liabilities. Income earned on these investments is included in Income derived from securities lending in the Statement of Operations.
Non-cash collateral received by the Fund may not be sold or re-pledged except to satisfy a borrower default. Therefore, non-cash collateral is not included on the Fund’s Schedule of Investments or Statement of Assets and Liabilities.
6. Capital Share Transactions
The tables below summarize the activity in capital shares for each Class of the Fund (dollars and shares in thousands):
Six Months Ended April 30, 2010
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
Shares sold | 16,258 | $ | 272,783 | 47 | $ | 889 | 6,570 | $ | 109,031 | |||||||||||||||
Reinvestment of dividends | 430 | 6,838 | — | — | 143 | 2,224 | ||||||||||||||||||
Shares redeemed | (6,386 | ) | (103,761 | ) | — | (8 | ) | (7,980 | ) | (127,874 | ) | |||||||||||||
Net increase (decrease) in shares outstanding | 10,302 | $ | 175,860 | 47 | $ | 881 | (1,267 | ) | $ | (16,619 | ) |
Advisor Class | Retirement Class | AMR Class | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
Shares sold | 624 | $ | 10,718 | — | $ | 8 | 12,247 | $ | 207,159 | |||||||||||||||
Reinvestment of dividends | — | — | — | — | 139 | 2,187 | ||||||||||||||||||
Shares redeemed | (620 | ) | (10,275 | ) | — | — | (2,301 | ) | (35,174 | ) | ||||||||||||||
Net increase (decrease) in shares outstanding | 4 | $ | 443 | — | $ | 8 | 10,085 | $ | 174,172 |
Year Ended October 31, 2009
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
Shares sold | 26,973 | $ | 326,038 | — | $ | 1 | 11,685 | $ | 134,422 | |||||||||||||||
Reinvestment of dividends | 1,227 | 13,407 | — | — | 813 | 8,704 | ||||||||||||||||||
Shares redeemed | (21,813 | ) | (257,527 | ) | — | — | (18,535 | ) | (216,176 | ) | ||||||||||||||
Net increase (decrease) in shares outstanding | 6,387 | $ | 81,918 | — | $ | 1 | (6,037 | ) | $ | (73,050 | ) |
Advisor Class | Retirement Class | AMR Class | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
Shares sold | 752 | $ | 8,517 | — | $ | 1 | 4,659 | $ | 60,433 | |||||||||||||||
Reinvestment of dividends | 29 | 311 | — | — | 361 | 3,927 | ||||||||||||||||||
Shares redeemed | (1,513 | ) | (17,313 | ) | — | — | (2,907 | ) | (31,988 | ) | ||||||||||||||
Net increase (decrease) in shares outstanding | (732 | ) | $ | (8,485 | ) | — | $ | 1 | 2,113 | $ | 32,372 |
7. Subsequent Events
Management has evaluated the possibility of subsequent events existing in the Fund’s financial statements. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements.
24
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25
American Beacon Small Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | |||||||||||||||||||||||||||||||
Six | ||||||||||||||||||||||||||||||||
Six Months | Months | August | ||||||||||||||||||||||||||||||
Ended April | Year Ended October 31, | Ended April 30, | 3 to October | |||||||||||||||||||||||||||||
30, 2010 | 2009 | 2008 | 2007 | 2006 | 2005A | 2010 | 31, 2009 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.39 | $ | 12.53 | $ | 22.10 | $ | 22.53 | $ | 20.43 | $ | 18.85 | $ | 14.37 | $ | 14.03 | ||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income | 0.04 | 0.10 | 0.25 | 0.22 | 0.19 | 0.11 | 0.11 | 0.00 | ||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 4.05 | 1.96 | (7.13 | ) | 1.10 | 2.94 | 2.31 | 3.95 | 0.34 | |||||||||||||||||||||||
Total income (loss) from investment operations | 4.09 | 2.06 | (6.88 | ) | 1.32 | 3.13 | 2.42 | 4.06 | 0.34 | |||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.09 | ) | (0.20 | ) | (0.22 | ) | (0.19 | ) | (0.14 | ) | (0.07 | ) | (0.11 | ) | — | |||||||||||||||||
Distributions from net realized gains on securities | — | — | (2.47 | ) | (1.56 | ) | (0.89 | ) | (0.77 | ) | — | — | ||||||||||||||||||||
Total distributions | (0.09 | ) | (0.20 | ) | (2.69 | ) | (1.75 | ) | (1.03 | ) | (0.84 | ) | (0.11 | ) | — | |||||||||||||||||
Net asset value, end of period | $ | 18.39 | $ | 14.39 | $ | 12.53 | $ | 22.10 | $ | 22.53 | $ | 20.43 | $ | 18.32 | $ | 14.37 | ||||||||||||||||
Total return B | 28.55 | %C | 16.97 | % | (34.84 | )% | 6.10 | % | 15.80 | % | 12.90 | % | 28.36 | %C | 2.42 | %C | ||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,519,719 | $ | 1,040,805 | $ | 826,232 | $ | 1,413,734 | $ | 1,319,024 | $ | 1,076,909 | $ | 855 | $ | 1 | ||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||
Expenses, net of waivers | 0.83 | % | 0.84 | % | 0.81 | % | 0.80 | % | 0.82 | % | 0.87 | % | 1.09 | % | 1.11 | %D | ||||||||||||||||
Expenses before waivers | 0.83 | % | 0.84 | % | 0.81 | % | 0.80 | % | 0.82 | % | 0.87 | % | 1.09 | % | 1.11 | %D | ||||||||||||||||
Net investment income (loss), net of waivers | 0.52 | % | 0.87 | % | 1.36 | % | 0.94 | % | 0.83 | % | 0.66 | % | (0.19 | )% | 0.03 | %D | ||||||||||||||||
Net investment income (loss), before waivers | 0.52 | % | 0.87 | % | 1.36 | % | 0.94 | % | 0.83 | % | 0.66 | % | (0.19 | )% | 0.03 | %D | ||||||||||||||||
Portfolio turnover rate | 30 | %C | 61 | % | 62 | % | 52 | % | 48 | % | 47 | % | 30 | %C | 61 | %E |
A | Opus Capital Group, LLC was added as an investment advisor on February 1, 2005 and Metropolitan West Capital Management, LLC and Dreman Value Management, LLC were added as investment advisors on August 31, 2005. | |
B | May include adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net assets for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. | |
C | Not annualized. | |
D | Annualized. | |
E | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. |
26
Investor Class | Advisor Class | |||||||||||||||||||||||||||||||||||||||||||||||
Six | Six | |||||||||||||||||||||||||||||||||||||||||||||||
Months | Months | |||||||||||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005A | 2010 | 2009 | 2008 | 2007 | 2006 | 2005A | |||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 14.05 | $ | 12.22 | $ | 21.62 | $ | 22.08 | $ | 20.04 | $ | 18.54 | $ | 13.97 | $ | 12.13 | $ | 21.46 | $ | 21.94 | $ | 19.94 | $ | 18.49 | |||||||||||||||||||||||||
0.02 | 0.08 | 0.20 | 0.16 | 0.13 | 0.09 | 0.00 | 0.06 | 0.16 | 0.10 | 0.07 | 0.04 | |||||||||||||||||||||||||||||||||||||
3.95 | 1.91 | (6.97 | ) | 1.07 | 2.89 | 2.24 | 3.95 | 1.90 | (6.93 | ) | 1.07 | 2.88 | 2.23 | |||||||||||||||||||||||||||||||||||
3.97 | 1.99 | (6.77 | ) | 1.23 | 3.02 | 2.33 | 3.95 | 1.96 | (6.77 | ) | 1.17 | 2.95 | 2.27 | |||||||||||||||||||||||||||||||||||
(0.05 | ) | (0.16 | ) | (0.16 | ) | (0.13 | ) | (0.09 | ) | (0.06 | ) | — | (0.12 | ) | (0.09 | ) | (0.09 | ) | (0.06 | ) | (0.05 | ) | ||||||||||||||||||||||||||
— | — | (2.47 | ) | (1.56 | ) | (0.89 | ) | (0.77 | ) | — | — | (2.47 | ) | (1.56 | ) | (0.89 | ) | (0.77 | ) | |||||||||||||||||||||||||||||
(0.05 | ) | (0.16 | ) | (2.63 | ) | (1.69 | ) | (0.98 | ) | (0.83 | ) | — | (0.12 | ) | (2.56 | ) | (1.65 | ) | (0.95 | ) | (0.82 | ) | ||||||||||||||||||||||||||
$ | 17.97 | $ | 14.05 | $ | 12.22 | $ | 21.62 | $ | 22.08 | $ | 20.04 | $ | 17.92 | $ | 13.97 | $ | 12.13 | $ | 21.46 | $ | 21.94 | $ | 19.94 | |||||||||||||||||||||||||
28.28 | %c | 16.59 | % | (35.04 | )% | 5.83 | % | 15.56 | % | 12.63 | % | 28.27 | %c | 16.41 | % | (35.19 | )% | 5.55 | % | 15.23 | % | 12.32 | % | |||||||||||||||||||||||||
$ | 897,551 | $ | 719,239 | $ | 699,670 | $ | 1,316,188 | $ | 1,333,814 | $ | 1,320,853 | $ | 36,412 | $ | 28,333 | $ | 33,479 | $ | 69,112 | $ | 70,602 | $ | 44,709 | |||||||||||||||||||||||||
1.18 | % | 1.15 | % | 1.06 | % | 1.05 | % | 1.06 | % | 1.10 | % | 1.33 | % | 1.31 | % | 1.31 | % | 1.32 | % | 1.34 | % | 1.40 | % | |||||||||||||||||||||||||
1.18 | % | 1.15 | % | 1.06 | % | 1.05 | % | 1.06 | % | 1.10 | % | 1.33 | % | 1.34 | % | 1.31 | % | 1.32 | % | 1.34 | % | 1.40 | % | |||||||||||||||||||||||||
0.18 | % | 0.59 | % | 1.12 | % | 0.70 | % | 0.59 | % | 0.42 | % | 0.03 | % | 0.48 | % | 0.86 | % | 0.43 | % | 0.31 | % | 0.12 | % | |||||||||||||||||||||||||
0.18 | % | 0.59 | % | 1.12 | % | 0.70 | % | 0.59 | % | 0.42 | % | 0.03 | % | 0.44 | % | 0.86 | % | 0.43 | % | 0.31 | % | 0.12 | % | |||||||||||||||||||||||||
30 | %c | 61 | % | 62 | % | 52 | % | 48 | % | 47 | % | 30 | %c | 61 | % | 62 | % | 52 | % | 48 | % | 47 | % |
27
American Beacon Small Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
Retirement Class | AMR Class | |||||||||||||||||||||||||||||||
Six | Six | |||||||||||||||||||||||||||||||
Months | Months | |||||||||||||||||||||||||||||||
Ended | May 1 to | Ended | ||||||||||||||||||||||||||||||
April 30, | October | April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||
2010 | 31, 2009 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005A | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.95 | $ | 11.58 | $ | 14.32 | $ | 12.48 | $ | 22.05 | $ | 22.48 | $ | 20.38 | $ | 18.78 | ||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.04 | (0.02 | ) | 0.05 | F | 0.11 | 0.33 | 0.30 | 0.27 | 0.21 | ||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 3.88 | 2.39 | 4.03 | 1.97 | (7.15 | ) | 1.08 | 2.91 | 2.26 | |||||||||||||||||||||||
Total income (loss) from investment operations | 3.92 | 2.37 | 4.08 | 2.08 | (6.82 | ) | 1.38 | 3.18 | 2.47 | |||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.04 | ) | — | (0.12 | ) | (0.24 | ) | (0.28 | ) | (0.25 | ) | (0.19 | ) | (0.10 | ) | |||||||||||||||||
Distributions from net realized gains on securities | — | — | — | — | (2.47 | ) | (1.56 | ) | (0.89 | ) | (0.77 | ) | ||||||||||||||||||||
Total distributions | (0.04 | ) | — | (0.12 | ) | (0.24 | ) | (2.75 | ) | (1.81 | ) | (1.08 | ) | (0.87 | ) | |||||||||||||||||
Net asset value, end of period | $ | 17.83 | $ | 13.95 | $ | 18.28 | $ | 14.32 | $ | 12.48 | $ | 22.05 | $ | 22.48 | $ | 20.38 | ||||||||||||||||
Total returnB | 28.13 | %c | 20.47 | %c | 28.66 | %c | 17.30 | % | (34.71 | )% | 6.39 | % | 16.12 | % | 13.23 | % | ||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 9 | $ | 1 | $ | 530,568 | $ | 271,066 | $ | 209,927 | $ | 411,406 | $ | 412,857 | $ | 424,965 | ||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||
Expenses, net of waivers | 1.50 | % | 1.53 | %D | 0.58 | % | 0.59 | % | 0.56 | % | 0.54 | % | 0.55 | % | 0.58 | % | ||||||||||||||||
Expenses before waivers | 1.50 | % | 1.53 | %D | 0.58 | % | 0.59 | % | 0.56 | % | 0.54 | % | 0.55 | % | 0.58 | % | ||||||||||||||||
Net investment income (loss), net of waivers | (0.18 | )% | (0.28 | )%D | 0.72 | % | 1.11 | % | 1.62 | % | 1.21 | % | 1.10 | % | 0.94 | % | ||||||||||||||||
Net investment income (loss), before waivers | (0.18 | )% | (0.28 | )%D | 0.72 | % | 1.11 | % | 1.62 | % | 1.21 | % | 1.10 | % | 0.94 | % | ||||||||||||||||
Portfolio turnover rate | 30 | %c | 61 | %E | 30 | %c | 61 | % | 62 | % | 52 | % | 48 | % | 47 | % |
A | Opus Capital Group, LLC was added as an investment advisor on February 1, 2005 and Metropolitan West Capital Management, LLC and Dreman Value Management, LLC were added as investment advisors on August 31, 2005. | |
B | May include adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net assets for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. | |
C | Not annualized. | |
D | Annualized. | |
E | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. | |
F | For purposes of this calculation, the change in undistributed net investment income per share was derived by dividing the change in undistributed net investment income by average shares outstanding for the period. |
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Delivery of Documents
To reduce expenses, your financial institution may mail only one copy of the Prospectus, Annual Report and Semi-Annual Report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please contact your financial institution. Delivery of individual copies will commence thirty days after receiving your request.
If you invest in the Fund through a financial institution, you may be able to receive the Fund’s regulatory mailings, such as the Prospectus, Annual Report and Semi-Annual Report, by e-mail. If you are interested in this option, please go to www.icsdelivery.com and search for your financial institution’s name or contact your financial institution directly.
To obtain more information about the Fund:
![]() By E-mail: | ![]() On the Internet: | |
american_beacon.funds@ambeacon.com | Visit our website at www.americanbeaconfunds.com | |
![]() | ![]() | |
By Telephone: | By Mail: | |
Institutional Class | American Beacon Funds | |
Call (800) 658-5811 | P.O. Box 219643 | |
AMR ClassSM | Kansas City, MO 64121-9643 | |
Call (800) 345-2345 | ||
Investor Class® and Advisor Class | ||
Call (800) 388-3344 |
Availability of Quarterly Portfolio Schedules | Availability of Proxy Voting Policy and Records | |
In addition to the Schedule of Investments provided in each semi-annual and annual report, the Fund files a complete schedule of its portfolio holdings with the Securities and Exchange Commission (“SEC”) on Form N-Q as of the first and third fiscal quarters. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room, 450 Fifth Street, NW, Washington, DC 20549. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330. A complete schedule of the Fund’s portfolio holdings is also available on the Funds’ website (www.americanbeaconfunds.com) approximately thirty days after the end of each month. | A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Fund’s Statement of Additional Information, is available free of charge on the Fund’s website (www.americanbeaconfunds.com) and by calling 1-800-967-9009 or by accessing the SEC’s website at www.sec.gov. The Fund’s proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Fund’s Forms N-PX are available on the SEC’s website at www.sec.gov. The Fund’s proxy voting record may also be obtained by calling 1-800-967-9009. |
Fund Service Providers:
Custodian | Transfer Agent | Independent Registered | Distributor | |||
State Street Bank and Trust Boston, Massachusetts | Boston Financial Data Services | Public Accounting Firm | Foreside Fund Services, LLC Portland, Maine | |||
Kansas City, Missouri | Ernst & Young LLP | |||||
Dallas, Texas |
This report is prepared for shareholders of the American Beacon Funds and may be distributed to others only if preceded or accompanied by a current prospectus.
American Beacon Funds and American Beacon Small Cap Value Fund are service marks of American Beacon Advisors, Inc.
SAR 04/10
00074816
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About American Beacon Advisors
Since 1986, American Beacon Advisors has offered a variety of products and investment advisory services to numerous institutional and retail clients, including a variety of mutual funds, corporate cash management, and separate account management.
Our clients include defined benefit plans, defined contribution plans, foundations, endowments, corporations, financial planners, and other institutional investors. With American Beacon Advisors, you can put the experience of a multi-billion dollar asset management firm to work for your company.
Contents
Message from American Beacon | 1 | |||
Market and Performance Overviews | 2-9 | |||
10 | ||||
International Equity | 16 | |||
Additional Information | Back Cover |
Any opinions herein, including forecasts, reflect our judgment as of the end of the reporting period and are subject to change. Each advisor’s strategies and the Fund’s portfolio composition will change depending on economic and market conditions. This report is not a complete analysis of market conditions and therefore, should not be relied upon as investment advice. Although economic and market information has been compiled from reliable sources, American Beacon Advisors, Inc. makes no representation as to the completeness or accuracy of the statements contained herein. |
Investing in foreign equities entails additional risk not associated with domestic equities, such as currency fluctuations, economic and political instability and differences in accounting standards. The risks of investing in foreign equities are heightened when investing in emerging markets.
American Beacon Funds | April 30, 2010 |
![](https://capedge.com/proxy/N-CSR/0000809593-10-000032/gene.jpg)
Fellow Shareholders,
Over the past six months, one universal theme seems to have emerged: while sudden and significant volatility may characterize the new economic world order, it doesn’t mean investors can’t benefit. Opportunity abounds for those who know how to capitalize on it.
Fortunately, this theme also underlies our investment philosophy at American Beacon:
With portfolios invested for the new economic reality—and conservatively managed for the longer term—we believe investors are better positioned to ride out the inevitable economic storms, whenever and wherever they occur.
It’s a philosophy that has served our shareholders well. It also explains how, in the face of the sovereign debt situation within peripheral European countries, the American Beacon Emerging Markets Fund (Institutional Class) reported a return of 11.66% for the six months ended April 30, 2010, while the American Beacon International Equity Fund (Institutional Class) experienced a 4.69% gain over the same period.
As global volatility has become the new norm, our focus at American Beacon remains trained on anticipating opportunities and meeting the challenges investors face today and will likely face tomorrow. This is what drives the composition of our fund line-up and the development of our new offerings in the last year.
It’s also a reflection of our commitment to you, a commitment we summarize as: Oversight 360°. Ours is a continuous commitment to cast a watchful and analytical eye over all the factors that influence our fellow shareholders’ investments.
As you review the enclosed market overview, portfolio listings, and detailed financial data, please know that we welcome the opportunity to serve your financial needs. To obtain further details about the American Beacon Funds family or to access your account information, please visit our website at www.americanbeaconfunds.com.
Thank you for your continued investment in the American Beacon Funds and know that we remain dedicated to offering you and your advisor the level of service and broad range of well-managed investment products you’ve come to expect from us.
Best Regards, | ||
![]() | ||
Gene L. Needles, Jr. | ||
President | ||
American Beacon Funds |
1
Emerging Markets Overview
April 30, 2010 (Unaudited)
During the six months ended April 30, the MSCI Emerging Markets Index gained 12.37% as the global equity marketplace survived a variety of challenges. The emerging markets asset class ended 2009 on a strong note led by a strong economic rebound thanks to a favorable mix of organic and state-sponsored growth initiatives. These initiatives further served to buoy commodities prices. In China, the world’s fastest growing major economy, Gross Domestic Product growth continued to accelerate.
However, challenges developed in January with the emergence of both deteriorating financial conditions within the peripheral European countries and from China’s move toward monetary tightening in the midst of a global recovery. As a result of this combination of developments, riskier assets suffered a mild correction through mid-February. These assets managed to bounce back in February as Greece announced austerity plans and talks among Greece, the European Union and the International Monetary Fund revived investors’ hopes that a positive resolution will be found to its crisis.
The March economic reports from the U.S. added to the general sense of relief late in the period, when labor data for February showed signs of improvement and spending data indicated that the U.S. consumer remained resilient.
From a regional perspective, the Emerging Europe, Middle East and Africa region gained 14.4%. Latin America and Emerging Asia followed, returning 12.0% and 11.8%, respectively. From a sector standpoint, Health Care (20.6%), Information Technology (20.0%), Consumer Discretionary (18.3%) and Materials (18.3%) led the gains. Energy (4.8%), Telecommunication Services (7.6%) and Financials (8.1%) were the worst performers.
2
Performance Overview
American Beacon Emerging Markets FundSM
April 30, 2010 (Unaudited)
The Institutional Class of the Emerging Markets Fund returned 11.66% for the six months ended April 30, 2010. The Fund underperformed the MSCI Emerging Markets Index (“Index”) return of 12.37% and the Lipper Emerging Markets Funds Index return of 13.37% for the period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/10 | ||||||||||||||||
Since | ||||||||||||||||
Incep. | ||||||||||||||||
6 Months* | 1 Year | 5 Years | (7/31/00) | |||||||||||||
Institutional Class(1,5) | 11.66 | % | 56.06 | % | 14.91 | % | 11.58 | % | ||||||||
Y Class (1,2,5) | 11.57 | % | 55.94 | % | 14.89 | % | 11.57 | % | ||||||||
Investor Class(1,3,5) | 11.42 | % | 55.56 | % | 14.56 | % | 11.32 | % | ||||||||
AMR Class(1,5) | 11.73 | % | 56.34 | % | 15.19 | % | 11.86 | % | ||||||||
MSCI Emg Mkts Index(4) | 12.37 | % | 57.13 | % | 16.56 | % | 12.03 | % | ||||||||
Lipper Emg Mkts Funds Index(4) | 13.37 | % | 59.50 | % | 14.60 | % | 11.25 | % |
* | Not annualized | |
1. | Performance shown is historical and may not be indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. | |
2. | Fund performance for the six month, one-year, five-year and since inception periods represent the total returns achieved by the Institutional Class from 7/31/00 up to 3/1/10, the inception date of the Y Class, and the returns of the Y Class since its inception. Expenses of the Y Class are higher than those of the Institutional Class. As a result, total returns shown may be higher than they would have been had the Y Class been in existence since 7/31/00. | |
3. | Fund performance for the since inception period represents the total returns achieved by the Institutional Class from 7/31/00 up to 10/1/02, the inception date of the Investor Class, and the returns of the Investor Class since its inception. Expenses of the Investor Class are higher than those of the Institutional Class. Therefore, total returns shown may be higher than they would have been had the Investor Class been in existence since 7/31/00. A portion of the fees charged to the Investor Class of the Fund was waived in 2004 and 2005 and recouped in 2006. Performance prior to fee waivers and fee recoupment is different than the actual returns shown. | |
4. | The MSCI Emerging Markets Index is a market capitalization weighted index composed of companies that are representative of the market structure of developing countries in Latin America, Asia, Eastern Europe, the Middle East and Africa. The Lipper Emerging Market Funds Index tracks the results of the 30 largest mutual funds in the Lipper Emerging Market Funds category. Lipper is an independent mutual fund research and ranking service. One cannot directly invest in an index. | |
5. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor and AMR Class shares was 1.67%, 1.77%, 1.97 and 1.43%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report. |
The Fund underperformed the Index over the six-month period as a result of poor stock selection. Country allocation added value for the period.
Stock selections in South Korea, Taiwan, and South Africa led to the relative underperformance, and more than offset positive selections in India. In South Korea, investments in Hyundai Development Co. (down 23.5% during the period the stock was held by the Fund) and Kb Financial Group, Inc. (down 0.8%) contributed to the relative underperformance. Detractors in Taiwan included Sinopac Financial Holdings Co. Ltd. (down 9.3%) and First Financial Holding Co. Ltd. (down 6.2%), and in South Africa, Murray & Roberts Holdings Ltd. (down 21.0%) and ArcelorMittal South Africa Ltd. (down 15.0%) underperformed. Positive contributors in India, such as Glenmark Pharmaceuticals Ltd. (up 27.5% during the period it was held by the Fund), IndusInd Bank Ltd. (up 75.6%), and India Cements Ltd. (up 20.6%) added value for the period.
Relative contribution from country allocation was positive for the six-month period, as a result of overweighting Egypt (up 9.7%) and South Korea (up 19.7%). Not investing in Chile (up 18.6%) detracted from performance for the period.
The Fund’s basic philosophy remains focused on investing in attractively valued companies with above-average earnings growth expectations.
3
Performance Overview
American Beacon Emerging Markets FundSM
April 30, 2010 (Unaudited)
Top Ten Holdings
% of | ||||
Net Assets | ||||
Samsung Electronics Co. Ltd. | 3.2 | % | ||
Petroleo Brasileiro S.A. | 2.6 | % | ||
Vale S.A. | 2.0 | % | ||
China Mobile Ltd. | 1.7 | % | ||
America Movil, S.A.B. de C.V. | 1.6 | % | ||
Itau Unibanco Banco Holding S.A. | 1.5 | % | ||
MTN Group Ltd. | 1.4 | % | ||
China Construction Bank Corp. | 1.3 | % | ||
LUKOIL Oil Co. | 1.3 | % | ||
Gazprom OAO | 1.3 | % |
Sector Allocation
% of | ||||
Equities | ||||
Financials | 24.5 | % | ||
Information Technology | 11.8 | % | ||
Telecommunication Services | 13.2 | % | ||
Energy | 11.7 | % | ||
Materials | 11.4 | % | ||
Industrials | 7.5 | % | ||
Consumer Staples | 7.3 | % | ||
Consumer Discretionary | 6.9 | % | ||
Utilities | 3.7 | % | ||
Health Care | 2.0 | % |
Country Allocation
![](https://capedge.com/proxy/N-CSR/0000809593-10-000032/z11111xxd7415304.gif)
Country Allocation
% of | ||||
Equities | ||||
Hong Kong/China | 16.6 | % | ||
South Korea | 15.0 | % | ||
Brazil | 13.6 | % | ||
India | 10.1 | % | ||
Taiwan | 9.7 | % | ||
Other Asia | 8.7 | % | ||
South Africa | 8.6 | % | ||
Other Europe, Middle East, Africa | 7.1 | % | ||
Russia | 4.4 | % | ||
Mexico | 4.4 | % | ||
Egypt | 1.2 | % | ||
Lebanon | 0.3 | % | ||
Singapore | 0.2 | % | ||
United States | 0.1 | % |
4
Fund Expenses
American Beacon Emerging Markets FundSM
April 30, 2010 (Unaudited)
Fund Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as redemption fees, and (2) ongoing costs, including management fees, administrative service fees, distribution (12b-1) fees, and other Fund expenses. The examples below are intended to help you understand the ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from November 1, 2009 through April 30, 2010.
Actual Expenses
The “Actual” lines of the table provide information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. Shareholders of the Investor and Institutional Classes that invest in the Fund through an IRA may be subject to a custodial IRA fee of $12 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $12 higher.
Hypothetical Example for Comparison Purposes
The “Hypothetical” lines of the table provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed 5% per year rate of return before expenses (not the Fund’s actual return). You may compare the ongoing costs of investing in the Fund with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Shareholders of the Investor and Institutional Classes that invest in the Fund through an IRA may be subject to a custodial IRA fee of $12 that is typically deducted each December. If your account was subject to a cust odial IRA fee during the period, your costs would have been $12 higher.
You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs charged by the Fund, such as redemption fees. Similarly, the expense examples for other funds do not reflect any transaction costs charged by those funds, such as sales charges (loads), redemption fees or exchange fees. Therefore, the “Hypothetical” lines of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If you were subject to any transaction costs during the period, your costs would have been higher.
Expenses Paid | ||||||||||||
Beginning Account | Ending Account | During Period | ||||||||||
Value 11/1/09 | Value 4/30/10 | 11/1/09-4/30/10 | ||||||||||
Institutional Class* | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,116.59 | $ | 7.45 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,017.75 | $ | 7.10 | ||||||
(5% return before expenses) | ||||||||||||
Y Class** | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,070.79 | $ | 2.57 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,005.84 | $ | 2.53 | ||||||
(5% return before expenses) | ||||||||||||
Investor Class* | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,114.20 | $ | 9.23 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,016.07 | $ | 8.80 | ||||||
(5% return before expenses) | ||||||||||||
AMR Class* | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,117.28 | $ | 6.46 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.70 | $ | 6.16 | ||||||
(5% return before expenses) |
* | Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 1.42%, 1.76% and 1.23% for the Institutional, Investor and AMR Classes respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half year period. | |
** | Beginning account value for Y Class is the inception date of 3/1/10. Expenses are equal to the Class annualized expense ratio for the period of 1.51% multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the period (61) by days in the year (365). |
5
International Equity Market Overview
April 30, 2010 (Unaudited)
During the six months ended April 30, improving global economic conditions and corporate fundamentals led most equity markets to trend higher despite periodic bouts of volatility and escalating concerns over the eventual impact of the sovereign debt situation within peripheral European countries. The MSCI EAFE Index posted a return of 2.48% for the 6-month time period.
The period began with the global economy exiting its worst recession since the Second World War. It was greatly aided by an unprecedented level of government stimuli throughout the world. This surge in liquidity served to reinvigorate global demand, supported the financial system, and created easier access to credit.
The general level of market enthusiasm was significantly dampened in January as news of the rapidly deteriorating fiscal conditions in Greece spread. This sent interest rates in that country higher, and greatly diminished global investors’ newly reacquired appetite for risk. During January, the markets were further troubled by news that China made a move to tighten monetary conditions in an attempt to cool down its growing economy. Ongoing discussions of regulatory reform in the Financial sector increased investors’ discomfort and stocks sold off through February.
Stocks rebounded in March as corporate earnings reignited optimism. With companies throughout the world reporting better than expected operating results, market losses were generally recovered by the end of the period.
Also underpinning the market’s late-period rise was the fact that G7 policymakers kept monetary conditions extremely loose. The most dramatic of these policy actions came in Europe, where the ongoing deterioration of sovereign balance sheets posed an increasingly dangerous threat to the survival of the monetary union. The European Union and International Monetary Fund agreed to provide funding to stabilize the regional financial system shortly after the close of the reporting period. The move came after ratings downgrades for the sovereign credits of Greece and Portugal incited the biggest surge in market volatility since the immediate aftermath of the Lehman Brothers collapse. The anxiety generated by Greece had pushed the euro to its lowest levels against the dollar in almost a year, though the weaker currency benefited exports an d European services and manufacturing industries expanded at their fastest pace in over two years.
Providing support for continued optimism, the International Monetary Fund (IMF) raised its forecast for 2010 global GDP growth to 4.2%, yet it cautioned that the public debt situation may experience “severe” consequences.
6
Performance Overview
American Beacon International Equity FundSM
April 30, 2010 (Unaudited)
The Institutional Class of the International Equity Fund returned 4.69% for the six months ended April 30, 2010. The Fund outperformed the MSCI EAFE Index (“Index”) return of 2.48% but underperformed the Lipper International Funds Index return of 6.22% for the period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/10 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,6) | 4.69 | % | 36.11 | % | 4.00 | % | 4.36 | % | ||||||||
Y Class (1,2,6) | 4.71 | % | 36.13 | % | 4.01 | % | 4.36 | % | ||||||||
Investor Class(1,6) | 4.52 | % | 35.75 | % | 3.72 | % | 4.13 | % | ||||||||
Advisor Class (1,3,6) | 4.41 | % | 35.29 | % | 3.42 | % | 3.91 | % | ||||||||
Retirement Class (1,4,6) | 4.34 | % | 35.21 | % | 3.41 | % | 3.91 | % | ||||||||
AMR Class(1,6) | 4.83 | % | 36.49 | % | 4.27 | % | 4.62 | % | ||||||||
Lipper Int’l. Funds Index(5) | 6.22 | % | 38.36 | % | 5.58 | % | 2.63 | % | ||||||||
MSCI EAFE Index (5) | 2.48 | % | 34.43 | % | 3.86 | % | 1.64 | % |
* | Not annualized | |
1. | Performance shown is historical and may not be indicative of future returns. Please note that the recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. | |
2. | Fund performance for the one-year, five year, and ten-year periods represents the total returns achieved by the Institutional Class from 4/30/00 up to 8/3/09, the inception date of the Y Class, and the returns of the Y Class since its inception. | |
3. | Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/00 up to 5/1/03, the inception date of the Advisor Class, and the returns of the Advisor Class since its inception. Expenses of the Advisor Class are higher than those of the Investor Class. As a result, total returns shown may be higher than they would have been had the Advisor Class been in existence since 4/30/00. A portion of the fees charged to the Advisor Class of the Fund was waived through 2007. Performance prior to waiving fees was lower than the actual returns shown for periods through 2007. | |
4. | Fund performance for the five-year and ten-year periods represents the total returns achieved by the Investor Class from 4/30/00 through 4/30/03 and the Advisor Class from 5/1/03 up to 5/1/09, the inception date of the Retirement Class, and the returns of the Retirement Class since its inception. Expenses of the Retirement Class are higher than those of the Advisor and Investor Classes. As a result, total returns shown may be higher than they would have been had the Retirement Class been in existence since 4/30/00. | |
5. | The Lipper International Funds Index tracks the results of the 30 largest mutual funds in the Lipper International Funds category. Lipper is an independent mutual fund research and ranking service. The MSCI EAFE Index is a market capitalization weighted index of international stock performance composed of equities from developed markets excluding the U.S. and Canada. One cannot directly invest in an index. | |
6. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, Retirement, and AMR Class shares was 0.74%, 0.70%, 1.06%, 1.46%, 1.49%, and 0.49%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report. |
The Fund outperformed the Index by 2.21% over the six-month period due to stock selection, as country allocation detracted from performance.
Stock selections within Japan, the Netherlands, and Norway had a significantly positive impact overall. In Japan, the Fund benefited from investments in Fanuc Ltd. (up 39.7%) and Sony Financial Holdings, Inc. (up 24.6%). In the Netherlands, Koninklijke Philips Electronics N.V. (up 37.6%) and TNT N.V. (up 16.8%) contributed to the Fund’s relative outperformance. Norwegian security Aker Solutions ASA (up 43.0%) was the most significant contributor to relative performance within that country. Stock selection in Australia detracted from relative performance, including Nufarm Ltd. (down 17.9% during the period the stock was held by the Fund), and Bluescope Steel Ltd. (down 9.6%). Stock selection within France also weakened performance during the period, including Societe Generale (down 19.8%) and Sanofi-Aventis S.A. (down 6.4%).
Country allocation hurt performance, specifically underweighting Australia (up 8.6%) and Japan (up 7.7%), though investing in South Korea (up 19.7%) added value for the period.
Although economic and market conditions vary from period to period, the Fund’s primary strategy of investing in undervalued companies with above-average earnings growth expectations remains consistent.
7
Performance Overview
American Beacon International Equity FundSM
April 30, 2010 (Unaudited)
Top Ten Holdings
% of | ||||
Net Assets | ||||
Sanofi-Aventis S.A. | 2.4 | % | ||
Siemens AG | 2.3 | % | ||
Royal Dutch Shell plc | 2.1 | % | ||
HSBC Holdings plc | 1.9 | % | ||
DBS Group Holdings Ltd. | 1.8 | % | ||
Vodafone Group plc | 1.8 | % | ||
GlaxoSmithKline plc | 1.6 | % | ||
Novartis AG | 1.6 | % | ||
Total S.A. | 1.5 | % | ||
E.ON AG | 1.5 | % |
Sector Allocation
% of | ||||
Equities | ||||
Financials | 24.5 | % | ||
Telecommunication Services | 13.2 | % | ||
Information Technology | 11.8 | % | ||
Energy | 11.7 | % | ||
Materials | 11.4 | % | ||
Industrials | 7.5 | % | ||
Consumer Staples | 7.3 | % | ||
Consumer Discretionary | 6.9 | % | ||
Utilities | 3.7 | % | ||
Health Care | 2.0 | % |
Regional Allocation*
![](https://capedge.com/proxy/N-CSR/0000809593-10-000032/z11111xxd7415305.gif)
* | Shown as a percentage of equities |
% of | ||||
Equities | ||||
Europe | 71.9 | % | ||
Pacific Rim | 26.1 | % | ||
North America | 2.0 | % |
8
Fund Expenses
American Beacon International Equity FundSM
April 30, 2010 (Unaudited)
Fund Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as redemption fees, and (2) ongoing costs, including management fees, administrative service fees, distribution (12b-1) fees, and other Fund expenses. The examples below are intended to help you understand the ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from November 1, 2009 through April 30, 2010.
Actual Expenses
The “Actual” lines of the table provide information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. Shareholders of the Investor and Institutional Classes that invest in the Fund through an IRA may be subject to a custodial IRA fee of $12 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $12 higher.
Hypothetical Example for Comparison Purposes
The “Hypothetical” lines of the table provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed 5% per year rate of return before expenses (not the Fund’s actual return). You may compare the ongoing costs of investing in the Fund with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Shareholders of the Investor and Institutional Classes that invest in the Fund through an IRA may be subject to a custodial IRA fee of $12 that is typically deducted each December. If your account was subject to a custodi al IRA fee during the period, your costs would have been $12 higher.
You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs charged by the Fund, such as redemption fees. Similarly, the expense examples for other funds do not reflect any transaction costs charged by those funds, such as sales charges (loads), redemption fees or exchange fees. Therefore, the “Hypothetical” lines of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If you were subject to any transaction costs during the period, your costs would have been higher.
Beginning | Ending | Expenses Paid During | ||||||||||
Account | Account | Period* | ||||||||||
Value 11/1/09 | Value 4/30/10 | 11/1/09-4/30/10 | ||||||||||
Institutional Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,046.93 | $ | 3.55 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.32 | $ | 3.51 | ||||||
(5% return before expenses) | ||||||||||||
Y Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,047.07 | $ | 3.60 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.27 | $ | 3.56 | ||||||
(5% return before expenses) | ||||||||||||
Investor Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,045.16 | $ | 5.38 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.54 | $ | 5.31 | ||||||
(5% return before expenses) | ||||||||||||
Advisor Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,044.07 | $ | 6.39 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.55 | $ | 6.31 | ||||||
(5% return before expenses) | ||||||||||||
Retirement Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,043.41 | $ | 7.55 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,017.41 | $ | 7.45 | ||||||
(5% return before expenses) | ||||||||||||
AMR Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,048.32 | $ | 2.29 | ||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.56 | $ | 2.26 | ||||||
(5% return before expenses) |
* | Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.70%, 0.71%, 1.06%, 1.26%, 1.49% and 0.45% for the Institutional, Y, Investor, Advisor, Retirement and AMR Classes respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half-year period. |
9
American Beacon Emerging Markets FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
BRAZIL - 13.13% | ||||||||
COMMON STOCKS - 10.94% | ||||||||
Banco Bradesco S.A., ADR | 21,940 | $ | 409 | |||||
Banco Santander Brasil S.A., ADR | 66,680 | 775 | ||||||
BRF - Brasil Foods S.A. | 48,610 | 635 | ||||||
Centrais Eletricas Brasileiras S.A. | 9,966 | 142 | ||||||
Cia de Bebidas das Americas, ADR | 6,000 | 587 | ||||||
Cia de Concessoes Rodoviarias | 5,900 | 137 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo | 10,670 | 205 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo, ADR | 1,410 | 55 | ||||||
Cia de Saneamento de Minas Gerais-COPASA | 28,600 | 415 | ||||||
Cia Energetica de Minas Gerais, ADR | 2,037 | 33 | ||||||
Cielo S.A. | 83,400 | 810 | ||||||
Empresa Brasileira de Aeronautica S.A. (Embraer), ADR | 21,450 | 516 | ||||||
Grendene S.A. | 55,740 | 257 | ||||||
Itau Unibanco Banco Holding S.A., GDR | 83,469 | 1,810 | ||||||
JBS S.A. | 21,900 | 103 | ||||||
MRV Engenharia e Participacoes S.A. | 40,900 | 289 | ||||||
OGX Petroleo e Gas Participacoes S.A. | 18,800 | 187 | ||||||
PDG Realty SA Empreendimentos e Participacoes | 33,400 | 307 | ||||||
Petroleo Brasileiro S.A., ADR | 14,360 | 609 | ||||||
Petroleo Brasileiro S.A., A Shares, ADR | 79,359 | 3,011 | ||||||
Porto Seguro SA | 48,500 | 500 | ||||||
Redecard S.A. | 27,600 | 456 | ||||||
TIM Participacoes S.A., ADR | 5,700 | 148 | ||||||
Tractebel Energia S.A. | 17,430 | 222 | ||||||
Vale S.A., ADR | 87,366 | 2,498 | ||||||
Vivo Participacoes S.A., GDR | 11,800 | 312 | ||||||
Total Common Stocks | 15,428 | |||||||
PREFERRED STOCKS - 2.19% | ||||||||
Banco Bradesco S.A. | 8,800 | 161 | ||||||
Braskem S.A. | 58,300 | 422 | ||||||
Cia de Tecidos do Norte de Minas - Coteminas | 54,862 | 168 | ||||||
Cia Energetica de Minas Gerais | 47,903 | 759 | ||||||
Itau Unibanco Banco Holding S.A. | 13,955 | 303 | ||||||
Net Servicos de Comunicacao S.A. ^ | 24,477 | 289 | ||||||
Tele Norte Leste Participacoes S.A., ADR | 30,240 | 449 | ||||||
Ultrapar Participacoes S.A. | 5,400 | 255 | ||||||
Vale S.A., A Shares | 10,704 | 286 | ||||||
Total Preferred Stocks | 3,092 | |||||||
Total Brazil | 18,520 | |||||||
CZECH REPUBLIC - 0.68% | ||||||||
COMMON STOCKS - 0.68% | ||||||||
CEZ | 3,452 | 166 | ||||||
Komercni Banka, a.s. | 2,924 | 603 | ||||||
Telefonica O2 Czech Republic a.s. | 8,453 | 187 | ||||||
Total Czech Republic | 956 | |||||||
EGYPT - 1.15% | ||||||||
COMMON STOCKS - 1.15% | ||||||||
Commercial International Bank Egypt SAE | 51,296 | 694 | ||||||
Orascom Construction Industries | 9,734 | 471 | ||||||
Telecom Egypt | 137,495 | 457 | ||||||
Total Egypt | 1,622 | |||||||
HONG KONG/CHINA - 15.95% | ||||||||
COMMON STOCKS - 15.95% | ||||||||
Asia Cement China Holdings Corp. | 520,500 | 252 | ||||||
Bank of China Ltd. | 756,900 | 389 | ||||||
Beijing Capital International Airport Co. Ltd. | 296,000 | 178 | ||||||
Beijing Enterprises Holdings Ltd. | 56,500 | 368 | ||||||
Belle International Holdings Ltd. | 275,000 | 378 | ||||||
Bosideng International Holdings Ltd. | 406,000 | 112 | ||||||
China Citic Bank Corp. Ltd. | 474,000 | 310 | ||||||
China Coal Energy Ltd. | 255,000 | 381 | ||||||
China Communications Services Corp. Ltd. | 436,000 | 218 | ||||||
China Construction Bank Corp. | 2,325,360 | 1,886 | ||||||
China Dongxiang Group Co. | 189,000 | 127 | ||||||
China Life Insurance Co. Ltd. | 167,000 | 759 | ||||||
China Longyuan Power Group Corp. ^ | 10,000 | 11 | ||||||
China Mobile Ltd. | 184,000 | 1,802 | ||||||
China Mobile Ltd., ADR | 10,780 | 527 | ||||||
China Oilfield Services Ltd. | 212,000 | 298 | ||||||
China Pacific Insurance Group Co Ltd. | 96,800 | 396 | ||||||
China Petroleum & Chemical Corp. | 930,000 | 744 | ||||||
China Petroleum & Chemical Corp., ADR | 840 | 67 | ||||||
China Power International Development Ltd. | 1,511,800 | 344 | ||||||
China Railway Construction Corp. Ltd. | 576,000 | 715 | ||||||
China Resources Power Holdings Co. Ltd. | 218,000 | 440 | ||||||
China Telecom Corp. Ltd. | 734,000 | 335 | ||||||
China Unicom Hong Kong Ltd. | 418,744 | 522 | ||||||
China Zhongwang Holdings Ltd. ^ | 367,600 | 313 | ||||||
COSCO Pacific Ltd. | 179,578 | 239 | ||||||
Denway Motors Ltd. | 1,080,700 | 637 | ||||||
Dongfeng Motor Group Co. Ltd. | 254,000 | 358 | ||||||
Fushan International Energy Group Ltd. | 282,000 | 197 | ||||||
Global Bio-chem Technology Group Co. Ltd. | 1,163,800 | 268 | ||||||
GOME Electrical Appliances Holdings Ltd. | 2,280,240 | 730 | ||||||
Harbin Power Equipment Co. Ltd. | 294,000 | 231 | ||||||
Hengan International Group Co. Ltd. | 20,000 | 153 | ||||||
Huaneng Power International, Inc. | 779,900 | 449 |
See accompanying notes
10
American Beacon Emerging Markets FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
Huaneng Power International, Inc., ADR | 4,180 | $ | 96 | |||||
Industrial & Commercial Bank of China | 1,506,000 | 1,105 | ||||||
Lumena Resources Corp. ^ | 858,000 | 252 | ||||||
Maanshan Iron & Steel | 722,000 | 379 | ||||||
NWS Holdings Ltd. | 254,757 | 444 | ||||||
PetroChina Co. Ltd. | 1,198,000 | 1,381 | ||||||
PetroChina Co. Ltd., ADR | 1,960 | 226 | ||||||
Ping’an Insurance Co. of China Ltd. | 40,000 | 341 | ||||||
Renhe Commercial Holdings Co. Ltd. | 2,114,000 | 513 | ||||||
Sany Heavy Equipment International Holdings Co. Ltd. ^ | 149,000 | 181 | ||||||
Shanghai Industrial Holdings Ltd. | 121,000 | 522 | ||||||
Sinotrans Ltd. | 1,448,000 | 344 | ||||||
Soho China Ltd. | 737,500 | 419 | ||||||
Sohu.com, Inc. ^ | 3,230 | 156 | ||||||
Tianjin Development Holdings | 76,000 | 48 | ||||||
TPV Technology Ltd. | 206,970 | 160 | ||||||
Tsingtao Brewery Co. Ltd. | 34,000 | 168 | ||||||
Want Want China Holdings Ltd. | 302,000 | 225 | ||||||
Weiqiao Textile Co. | 536,600 | 396 | ||||||
Total Hong Kong/China | 22,490 | |||||||
HUNGARY - 0.93% | ||||||||
COMMON STOCKS - 0.93% | ||||||||
Mol Hungarian Oil and Gas plc ^ | 6,528 | 656 | ||||||
OTP Bank ^ | 4,246 | 150 | ||||||
Richter Gedeon Nyrt. | 2,382 | 504 | ||||||
Total Hungary | 1,310 | |||||||
INDIA - 9.74% | ||||||||
COMMON STOCKS - 9.74% | ||||||||
Andhra Bank | 47,780 | 143 | ||||||
Asian Paints Ltd. | 4,854 | 227 | ||||||
Bank of India | 56,780 | 483 | ||||||
Bharat Heavy Electricals Ltd. | 6,338 | 354 | ||||||
Bharat Petroleum Corp. Ltd. | 31,403 | 368 | ||||||
Bharti Airtel Ltd. | 128,540 | 869 | ||||||
Colgate-Palmolive India Ltd. | 10,188 | 171 | ||||||
Deccan Chronicle Holdings Ltd. | 36,179 | 121 | ||||||
Dr Reddys Laboratories Ltd. | 13,612 | 382 | ||||||
Glenmark Pharmaceuticals Ltd. | 127,285 | 765 | ||||||
Godrej Consumer Products Ltd. | 25,313 | 165 | ||||||
HDFC Bank Ltd. | 19,345 | 862 | ||||||
Hero Honda Motors Ltd. | 3,745 | 160 | ||||||
Hindalco Industries Ltd. | 71,684 | 286 | ||||||
Hindustan Construction Co. | 63,508 | 188 | ||||||
Hindustan Petroleum Corp. Ltd. | 54,970 | 390 | ||||||
India Cements Ltd. | 236,260 | 666 | ||||||
Indian Bank | 84,893 | 431 | ||||||
IndusInd Bank Ltd. | 74,974 | 327 | ||||||
Infosys Technologies Ltd. | 14,824 | 904 | ||||||
ITC Ltd. | 38,350 | 229 | ||||||
KSK Energy Ventures Ltd. ^ | 46,000 | 198 | ||||||
Mahanagar Telephone Nigam Ltd. | 182,310 | 291 | ||||||
Marico Ltd. | 54,100 | 130 | ||||||
Nestle India Ltd. | 2,084 | 129 | ||||||
NMDC Ltd. | 36,870 | 247 | ||||||
Reliance Industries Ltd. | 50,666 | 1,169 | ||||||
Rolta India Ltd. | 87,400 | 370 | ||||||
Rural Electrification Corp. Ltd. | 26,030 | 149 | ||||||
Shree Renuka Sugars Ltd. | 79,260 | 110 | ||||||
State Bank of India | 3,532 | 278 | ||||||
State Bank of India, GDR ‡ | 9,190 | 942 | ||||||
Sun TV Network Ltd. | 17,777 | 168 | ||||||
Tata Motors Ltd. | 27,377 | 532 | ||||||
Wipro Ltd. | 15,741 | 237 | ||||||
Yes Bank Ltd. ^ | 45,160 | 290 | ||||||
Total India | 13,731 | |||||||
INDONESIA - 2.50% | ||||||||
COMMON STOCKS - 2.50% | ||||||||
Astra International Tbk PT | 112,400 | 581 | ||||||
PT Bank Central Asia Tbk | 675,000 | 407 | ||||||
PT Bank Rakyat Indonesia Tbk | 269,500 | 266 | ||||||
PT Bumi Resources Tbk | 839,500 | 217 | ||||||
PT Indofood Sukses Makmur Tbk | 698,500 | 298 | ||||||
PT Indosat Tbk | 581,500 | 376 | ||||||
PT International Nickel Indonesia Tbk | 445,000 | 242 | ||||||
PT Medco Energi Internasional Tbk | 732,000 | 235 | ||||||
PT Perusahaan Gas Negara Persero Tbk | 579,500 | 260 | ||||||
PT Telekomunikasi Indonesia Tbk | 747,300 | 643 | ||||||
Total Indonesia | 3,525 | |||||||
ISRAEL - 0.41% | ||||||||
COMMON STOCKS - 0.41% | ||||||||
Bank Hapoalim B.M. ^ | 14,990 | 60 | ||||||
Makhteshim-Agan Industries Ltd. | 68,920 | 291 | ||||||
Teva Pharmaceutical Industries Ltd., ADR | 3,940 | 232 | ||||||
Total Israel | 583 | |||||||
LEBANON - 0.28% | ||||||||
COMMON STOCKS - 0.28% | ||||||||
Banque Audi sal- Audi Saradar Group, GDR | 2,492 | 219 | ||||||
BLOM Bank SAL, GDR | 1,819 | 174 | ||||||
Total Lebanon | 393 | |||||||
MALAYSIA - 2.38% | ||||||||
COMMON STOCKS - 2.38% | ||||||||
Axiata Group Bhd | 284,300 | 345 | ||||||
Gamuda Bhd | 449,900 | 423 |
See accompanying notes
11
American Beacon Emerging Markets FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
Gamuda Bhd, Right ^ | 56,237 | $ | — | |||||
Genting Malaysia Bhd | 822,910 | 742 | ||||||
Malayan Banking Bhd | 572,270 | 1,367 | ||||||
Sime Darby Bhd | 114,800 | 313 | ||||||
Tenaga Nasional Bhd | 62,300 | 165 | ||||||
Total Malaysia | 3,355 | |||||||
MEXICO - 4.19% | ||||||||
COMMON STOCKS - 4.19% | ||||||||
America Movil, S.A.B. de C.V., ADR | 44,297 | 2,280 | ||||||
Consorcio ARA, S.A.B. de C.V. | 288,900 | 198 | ||||||
Desarrolladora Homex, S.A.B. de C.V., ADR ^ | 13,130 | 380 | ||||||
Embotelladoras Arca, S.A.B. de C.V. | 127,230 | 481 | ||||||
Fomento Economico Mexicano, S.A.B. de C.V., ADR | 18,000 | 852 | ||||||
Grupo Continential, S.A.B. de C.V. | 132,350 | 354 | ||||||
Grupo Financiero Banorte, S.A.B. de C.V. | 100,089 | 402 | ||||||
Grupo Televisa, S.A., ADR | 27,600 | 574 | ||||||
Industrias CH S.A.B de C.V. ^ | 33,900 | 142 | ||||||
Wal-Mart de Mexico, S.A.B. de C.V. | 103,000 | 240 | ||||||
Total Mexico | 5,903 | |||||||
PHILIPPINES - 0.97% | ||||||||
COMMON STOCKS - 0.97% | ||||||||
Ayala Corp. | 27,430 | 208 | ||||||
Bank of the Philippine Islands | 163,027 | 165 | ||||||
Metro Pacific Investments Corp. ^ | 3,169,000 | 224 | ||||||
Metropolitan Bank & Trust | 190,200 | 226 | ||||||
Philippine Long Distance Telephone Co. | 4,470 | 250 | ||||||
SM Investments Corp. | 23,120 | 206 | ||||||
Union Bank of the Philippines | 85,200 | 86 | ||||||
Total Philippines | 1,365 | |||||||
POLAND - 2.12% | ||||||||
COMMON STOCKS - 2.12% | ||||||||
Asseco Poland SA | 18,020 | 345 | ||||||
Asseco Poland SA, Right ^ | 2,020 | — | ||||||
Bank Handlowy W Warszawie S.A. | 6,076 | 167 | ||||||
Bank Pekao S.A. | 1,760 | 100 | ||||||
Bank Zachodni WBK S.A. ^ | 2,200 | 161 | ||||||
Central European Distribution Corp. | 12,582 | 436 | ||||||
Polski Koncern Naftowy Orlen S.A. ^ | 33,444 | 443 | ||||||
Powszechna Kasa Oszczednosci Bank Polski S.A. | 39,382 | 565 | ||||||
Telekomunikacja Polska S.A. | 141,203 | 769 | ||||||
Total Poland | 2,986 | |||||||
RUSSIA - 4.22% | ||||||||
COMMON STOCKS - 4.22% | ||||||||
Gazprom OAO, ADR | 77,330 | 1,796 | ||||||
LUKOIL Oil Co., ADR | 32,616 | 1,866 | ||||||
OJSC MMC Norilsk Nickel, ADR | 13,149 | 252 | ||||||
OJSC Rosneft Oil Co., GDR | 68,079 | 552 | ||||||
Polyus Gold Co., GDR | 2,044 | 51 | ||||||
RusHydro, ADR ^ | 88,820 | 515 | ||||||
Sberbank RF, GDR | 900 | 246 | ||||||
Wimm-Bill-Dann Foods OJSC, ADR | 15,748 | 342 | ||||||
X 5 Retail Group NV ^ | 9,232 | 328 | ||||||
X 5 Retail Group NV, GDR ^ | 251 | 9 | ||||||
Total Russia | 5,957 | |||||||
SINGAPORE - 0.17% | ||||||||
COMMON STOCKS - 0.17% | ||||||||
Golden Agri-Resources Ltd. | 586,000 | 247 | ||||||
SOUTH AFRICA - 8.27% | ||||||||
COMMON STOCKS - 8.27% | ||||||||
Anglo Platinum Ltd. | 8,131 | 890 | ||||||
AngloGold Ashanti Ltd., ADR | 10,194 | 427 | ||||||
ArcelorMittal South Africa Ltd. | 27,784 | 320 | ||||||
AVI Ltd. | 60,200 | 195 | ||||||
Barloworld Ltd. | 50,660 | 338 | ||||||
FirstRand Ltd. | 141,160 | 389 | ||||||
Gold Fields Ltd., ADR | 18,120 | 243 | ||||||
Impala Platinum Holdings Ltd. | 29,400 | 828 | ||||||
Imperial Holdings Ltd. | 21,500 | 285 | ||||||
JD Group Ltd. | 79,660 | 470 | ||||||
Kumba Iron Ore Ltd. | 772 | 36 | ||||||
MTN Group Ltd. | 129,486 | 1,906 | ||||||
Murray & Roberts Holdings Ltd. | 107,360 | 598 | ||||||
Nampak Ltd. | 191,290 | 464 | ||||||
Naspers Ltd. | 21,226 | 856 | ||||||
Nedbank Group Ltd. | 17,111 | 308 | ||||||
SABMiller plc | 22,704 | 710 | ||||||
Sappi Ltd. | 76,204 | 321 | ||||||
Sasol Ltd. | 14,610 | 593 | ||||||
Sasol Ltd., ADR | 5,140 | 209 | ||||||
Standard Bank Group Ltd. | 22,635 | 351 | ||||||
Telkom South Africa Ltd. | 72,420 | 363 | ||||||
Tiger Brands Ltd. | 21,849 | 556 | ||||||
Total South Africa | 11,656 | |||||||
SOUTH KOREA - 14.41% | ||||||||
COMMON STOCKS - 14.19% | ||||||||
Amorepacific Corp. | 253 | 191 | ||||||
Cheil Industries, Inc. | 4,230 | 302 | ||||||
Cheil Worldwide, Inc. | 1,068 | 336 | ||||||
CJ CheilJedang Corp. | 1,069 | 214 | ||||||
Hyundai Development Co. | 16,270 | 401 | ||||||
Hyundai Engineering & Construction Co. Ltd. | 2,595 | 125 |
See accompanying notes
12
American Beacon Emerging Markets FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
Hyundai Mobis | 1,926 | $ | 320 | |||||
Hyundai Motor Co. | 2,476 | 303 | ||||||
Jinro Ltd. | 5,100 | 161 | ||||||
Kangwon Land, Inc. | 40,710 | 631 | ||||||
KB Financial Group, Inc. | 18,233 | 881 | ||||||
KB Financial Group, Inc., ADR | 370 | 18 | ||||||
Kia Motors Corp. | 17,506 | 427 | ||||||
Korea Electric Power Corp. | 16,035 | 490 | ||||||
Korea Exchange Bank | 1,090 | 13 | ||||||
Korean Reinsurance Co. | 46,103 | 402 | ||||||
KT Corp. | 8,160 | 364 | ||||||
KT Corp., ADR | 13,970 | 316 | ||||||
KT&G Corp. | 10,109 | 510 | ||||||
LG Chem Ltd. | 2,752 | 700 | ||||||
LG Display Co. Ltd. | 11,500 | 487 | ||||||
LG Display Co. Ltd., ADR | 4,600 | 97 | ||||||
LG Electronics, Inc. | 1,243 | 135 | ||||||
LG Telecom Ltd. | 5,356 | 40 | ||||||
Lotte Chilsung Beverage Co. Ltd. | 95 | 73 | ||||||
Lotte Shopping Co. Ltd. | 1,179 | 334 | ||||||
NCSoft Corp. | 403 | 60 | ||||||
NHN Corp. ^ | 1,927 | 322 | ||||||
Nong Shim Co. Ltd. | 1,718 | 331 | ||||||
OCI Co. Ltd. | 3,511 | 668 | ||||||
POSCO | 1,915 | 860 | ||||||
POSCO, ADR | 270 | 30 | ||||||
Samsung Electronics Co. Ltd. | 5,476 | 4,142 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 4,272 | 788 | ||||||
Samsung Life Insurance Co. Ltd. | 2,510 | 249 | ||||||
Shinhan Financial Group Co. Ltd. | 24,686 | 1,043 | ||||||
Shinsegae Co. Ltd. | 610 | 280 | ||||||
SK Telecom Co. Ltd. | 217 | 33 | ||||||
SK Telecom Co. Ltd., ADR | 39,510 | 731 | ||||||
S-Oil Corp. | 7,257 | 370 | ||||||
SSCP Co. Ltd. ^ | 10,299 | 70 | ||||||
Tong Yang Life Insurance | 44,480 | 558 | ||||||
Woongjin Coway Co. Ltd. | 13,136 | 433 | ||||||
Woori Finance Holdings Co. Ltd. | 14,720 | 233 | ||||||
Yuhan Corp. | 3,721 | 537 | ||||||
Total Common Stocks | 20,009 | |||||||
PREFERRED STOCKS - 0.22% | ||||||||
Samsung Electronics Co. Ltd. | 658 | 312 | ||||||
Total South Korea | 20,321 | |||||||
TAIWAN - 9.37% | ||||||||
COMMON STOCKS - 9.37% | ||||||||
Acer, Inc. | 98,886 | 268 | ||||||
Asia Cement Corp. | 302,000 | 282 | ||||||
Asustek Computer, Inc. | 362,356 | 696 | ||||||
AU Optronics Corp. | 347,520 | 404 | ||||||
AU Optronics Corp., ADR | 13,660 | 158 | ||||||
Catcher Technology Co. Ltd. | 170,000 | 446 | ||||||
Cathay Financial Holding Co. Ltd. | 249,400 | 397 | ||||||
Chang Hwa Commercial Bank | 821,000 | 367 | ||||||
China Steel Corp. | 671,502 | 716 | ||||||
Chinatrust Financial Holding Co. Ltd. | 837,326 | 470 | ||||||
Evergreen Marine Corp. ^ | 165,900 | 106 | ||||||
First Financial Holding Co. Ltd. | 1,168,201 | 640 | ||||||
Fubon Financial Holding Co. Ltd. | 289,000 | 351 | ||||||
HON HAI Precision Industry Co. Ltd. | 292,112 | 1,365 | ||||||
HTC Corp. | 46,970 | 627 | ||||||
Lite-On Technology Corp. | 149,000 | 197 | ||||||
MediaTek, Inc. | 8,000 | 135 | ||||||
Mega Financial Holding Co. Ltd. | 197,000 | 115 | ||||||
Nan Ya Printed Circuit Board Corp. | 100,989 | 417 | ||||||
Quanta Computer, Inc. | 473,000 | 886 | ||||||
SinoPac Financial Holdings Co. Ltd. | 1,481,987 | 505 | ||||||
Taishin Financial Holdings Co. Ltd. | 134,636 | 52 | ||||||
Taiwan Fertilizer Co. Ltd. | 43,000 | 136 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 815,385 | 1,590 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 13,330 | 141 | ||||||
Tatung Co. Ltd. ^ | 2,161,000 | 442 | ||||||
Transcend Information, Inc. | 29,520 | 94 | ||||||
Uni-President Enterprises Corp. | 211,000 | 234 | ||||||
United Microelectronics Corp. | 1,195,226 | 601 | ||||||
Wistron Corp. | 109,014 | 209 | ||||||
Yuanta Financial Holding Co. Ltd. | 286,000 | 170 | ||||||
Total Taiwan | 13,217 | |||||||
THAILAND - 2.54% | ||||||||
COMMON STOCKS - 2.54% | ||||||||
Bangkok Bank PCL # | 206,590 | 756 | ||||||
Banpu pcl # | 15,000 | 294 | ||||||
Kasikornbank PCL | 288,600 | 825 | ||||||
Krung Thai Bank PCL | 563,400 | 195 | ||||||
PTT Exploration & Production PCL | 36,000 | 168 | ||||||
PTT PCL | 67,300 | 503 | ||||||
Siam Cement PCL # | 29,200 | 237 | ||||||
Siam Commercial Bank PCL | 96,800 | 237 | ||||||
Thai Union Frozen Products PCL | 139,800 | 164 | ||||||
Total Access Communication Pcl # | 188,800 | 198 | ||||||
Total Thailand | 3,577 | |||||||
TURKEY - 2.63% | ||||||||
COMMON STOCKS - 2.63% | ||||||||
Akbank TAS | 50,179 | 249 | ||||||
Anadolu Efes Biracilik Ve Malt Sanayii A.S. | 46,728 | 580 |
See accompanying notes
13
American Beacon Emerging Markets FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
Coca-Cola Icecek A.S. | 21,520 | $ | 211 | |||||
TAV Havalimanlari Holding A.S. ^ | 74,597 | 361 | ||||||
Tupras-Turkiye Petrol Rafinerileri A.S. | 9,681 | 214 | ||||||
Turk Telekomunikasyon A.S. | 58,877 | 217 | ||||||
Turkcell Iletisim Hizmetleri A.S. | 78,983 | 511 | ||||||
Turkcell Iletisim Hizmetleri A.S., ADR | 14,870 | 241 | ||||||
Turkiye Garanti Bankasi A.S. | 89,419 | 435 | ||||||
Turkiye Halk Bankasi A.S. | 10,492 | 83 | ||||||
Turkiye Is Bankasi (Isbank) | 118,292 | 412 | ||||||
Turkiye Sise ve Cam Fabrikalari A.S. | 144,687 | 194 | ||||||
Total Turkey | 3,708 | |||||||
UNITED KINGDOM - 0.06% | ||||||||
COMMON STOCKS - 0.06% | ||||||||
JKX Oil & Gas plc | 21,780 | 87 | ||||||
UNITED STATES - 0.13% | ||||||||
COMMON STOCKS - 0.13% | ||||||||
Fuqi International, Inc. ^ | 16,920 | 178 | ||||||
SHORT TERM INVESTMENTS - 2.95% | ||||||||
JPMorgan U.S. Government Money Market Fund | 3,551,589 | 3,552 |
Par | ||||||||
Amount | ||||||||
U.S. Treasury, 0.14%, Due 6/17/2010 § | $ | 605 | 605 | |||||
Total Short Term Investments | 4,157 | |||||||
TOTAL INVESTMENTS 99.18% - (Cost $110,680) | 139,844 | |||||||
OTHER ASSETS, NET OF LIABILITIES - 0.82% | 1,160 | |||||||
TOTAL NET ASSETS - 100.00% | $ | 141,004 |
Percentages are stated as a percent of net assets. | ||
^ | Non-income producing security. | |
‡ | Security exempt from registration under the Securities Act of 1933. These securities may be resold to qualified institutional buyers pursuant to Rule 144A. At the period end, the value of these securities amounted to $942 or 0.67% of net assets. The Fund has no right to demand registration of these securities. | |
# | NVDR — Non Voting Depository Receipt | |
§ | At April 30, 2010, security pledged as collateral for open futures contracts. |
Futures Contracts
(dollars in thousands)
Unrealized | ||||||||||||||||
Number of | Expiration | Market | Appreciation/ | |||||||||||||
Contracts | Date | Value | (Depreciation) | |||||||||||||
Emini S&P 500 Index | 88 | Jun 2010 | $ | 5,207 | $ | 92 | ||||||||||
See accompanying notes
14
American Beacon Emerging Markets FundSM
Schedule of Investments
April 30, 2010 (Unaudited)
Sector Diversification
Percent of | ||||
Net Assets | ||||
Communications | 1.34 | % | ||
Consumer Discretionary | 6.66 | % | ||
Consumer Staples | 7.06 | % | ||
Energy | 11.28 | % | ||
Financials | 23.56 | % | ||
Health Care | 1.91 | % | ||
Industrials | 7.24 | % | ||
Information Technology | 11.32 | % | ||
Materials | 10.94 | % | ||
Telecommunication Services | 11.34 | % | ||
Utilities | 3.58 | % | ||
Short Term Investments | 2.95 | % | ||
Other Assets, Net of Liabilities | 0.82 | % | ||
100.00 | % |
See accompanying notes
15
American Beacon International Equity Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
AUSTRALIA - 1.72% | ||||||||
COMMON STOCKS - 1.72% | ||||||||
BlueScope Steel Ltd. | 1,942,031 | $ | 4,661 | |||||
Foster’s Group Ltd. | 958,071 | 4,809 | ||||||
Insurance Australia Group Ltd. | 2,154,061 | 7,573 | ||||||
Nufarm Ltd. | 58,422 | 413 | ||||||
Nufarm Ltd. † | 495,870 | 3,481 | ||||||
QBE Insurance Group Ltd. | 156,500 | 3,045 | ||||||
Total Australia | 23,982 | |||||||
AUSTRIA - 0.19% | ||||||||
COMMON STOCKS - 0.19% | ||||||||
Telekom Austria AG | 202,700 | 2,694 | ||||||
BELGIUM - 0.44% | ||||||||
COMMON STOCKS - 0.44% | ||||||||
Anheuser-Busch InBev NV † | 127,200 | 6,189 | ||||||
CANADA - 1.10% | ||||||||
COMMON STOCKS - 1.10% | ||||||||
Potash Corp of Saskatchewan, Inc. | 31,400 | 3,469 | ||||||
Precision Drilling Trust | 746,429 | 5,666 | ||||||
Rogers Communications, Inc. | 93,800 | 3,344 | ||||||
TELUS Corp. | 80,100 | 2,963 | ||||||
Total Canada | 15,442 | |||||||
DENMARK - 0.20% | ||||||||
COMMON STOCKS - 0.20% | ||||||||
DSV AS | 40,850 | 727 | ||||||
Novo Nordisk AS | 25,525 | 2,085 | ||||||
Total Denmark | 2,812 | |||||||
FINLAND - 0.90% | ||||||||
COMMON STOCKS - 0.90% | ||||||||
Nokia Oyj | 614,339 | 7,477 | ||||||
UPM-Kymmene Oyj | 357,847 | 5,166 | ||||||
Total Finland | 12,643 | |||||||
FRANCE - 11.99% | ||||||||
COMMON STOCKS - 11.99% | ||||||||
Accor S.A. | 154,849 | 8,849 | ||||||
AXA S.A. † | 544,351 | 10,820 | ||||||
BNP Paribas | 161,474 | 11,098 | ||||||
Carrefour S.A. | 136,040 | 6,673 | ||||||
Cie Generale des Etablissements Michelin | 90,220 | 6,528 | ||||||
EADS N.V. | 371,021 | 6,876 | ||||||
France Telecom S.A. | 544,892 | 11,944 | ||||||
Gemalto N.V. ^ | 50,347 | 2,257 | ||||||
Sanofi-Aventis S.A. † | 498,839 | 34,157 | ||||||
Societe Generale | 172,380 | 9,172 | ||||||
Technip S.A. † | 166,739 | 13,325 | ||||||
Total S.A. | 391,987 | 21,240 | ||||||
Valeo ^ | 84,196 | 2,813 | ||||||
VINCI S.A. | 178,714 | 10,009 | ||||||
Vivendi S.A. † | 453,916 | 11,947 | ||||||
Total France | 167,708 | |||||||
GERMANY - 9.15% | ||||||||
COMMON STOCKS - 9.15% | ||||||||
Allianz SE † | 38,750 | 4,449 | ||||||
Bayer AG † | 76,715 | 4,910 | ||||||
Bayerische Motoren Werke AG | 269,010 | 13,181 | ||||||
Celesio AG † | 245,480 | 8,042 | ||||||
Deutsche Post AG | 825,359 | 13,365 | ||||||
E.ON AG ^ † | 562,911 | 20,806 | ||||||
Linde AG † | 88,106 | 10,535 | ||||||
Merck KGaA | 57,150 | 4,696 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG † | 45,297 | 6,405 | ||||||
SAP AG | 204,010 | �� | 9,828 | |||||
Siemens AG | 321,970 | 31,831 | ||||||
Total Germany | 128,048 | |||||||
GREECE - 0.56% | ||||||||
COMMON STOCKS - 0.56% | ||||||||
OPAP S.A. | 255,077 | 5,184 | ||||||
Public Power Corp. S.A. | 165,900 | 2,693 | ||||||
Total Greece | 7,877 | |||||||
HONG KONG/CHINA - 2.17% | ||||||||
COMMON STOCKS - 2.17% | ||||||||
Cheung Kong Holdings Ltd. | 472,500 | 5,855 | ||||||
Esprit Holdings Ltd. | 842,305 | 6,033 | ||||||
Hang Seng Bank Ltd. | 344,800 | 4,704 | ||||||
Hutchison Whampoa Ltd. | 187,000 | 1,281 | ||||||
Swire Pacific Ltd. | 322,100 | 3,595 | ||||||
Swire Properties Ltd. ^ | 32,210 | 89 | ||||||
Yue Yuen Industrial Holdings Ltd. | 2,537,667 | 8,810 | ||||||
Total Hong Kong/China | 30,367 | |||||||
IRELAND - 0.86% | ||||||||
COMMON STOCKS - 0.86% | ||||||||
CRH plc | 255,152 | 7,229 | ||||||
Smurfit Kappa Group plc | 465,636 | 4,752 | ||||||
Total Ireland | 11,981 | |||||||
ITALY - 2.76% | ||||||||
COMMON STOCKS - 2.76% | ||||||||
Atlantia S.p.A | 121,000 | 2,582 |
See accompanying notes
16
American Beacon International Equity Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
Buzzi Unicem S.p.A. † | 217,715 | $ | 3,255 | |||||
Eni S.p.A. | 233,856 | 5,243 | ||||||
Finmeccanica S.p.A. | 536,770 | 6,868 | ||||||
Intesa Sanpaolo S.p.A ^ | 824,480 | 2,713 | ||||||
Prysmian S.p.A. | 139,442 | 2,505 | ||||||
Saras S.p.A. | 315,900 | 765 | ||||||
Snam Rete Gas S.p.A | 1,281,558 | 6,073 | ||||||
UniCredit S.p.A. | 3,248,724 | 8,521 | ||||||
Total Italy | 38,525 | |||||||
JAPAN - 16.25% | ||||||||
COMMON STOCKS - 16.25% | ||||||||
Benesse Holdings, Inc. | 52,200 | 2,406 | ||||||
Bridgestone Corp. | 342,700 | 5,719 | ||||||
Canon, Inc. | 139,900 | 6,387 | ||||||
Chuo Mitsui Trust Holdings, Inc. | 1,043,400 | 3,999 | ||||||
Daito Trust Construction Co. Ltd. | 104,900 | 5,616 | ||||||
East Japan Railway Co. | 65,200 | 4,355 | ||||||
Fanuc Ltd. | 84,500 | 9,995 | ||||||
FUJIFILM Holdings Corp. | 107,900 | 3,704 | ||||||
Haseko Corp. | 3,521,018 | 3,674 | ||||||
Honda Motor Co. Ltd. | 247,600 | 8,367 | ||||||
Hoya Corp. | 185,300 | 5,097 | ||||||
Inpex Corp. | 335 | 2,368 | ||||||
JS Group Corp. | 189,400 | 3,730 | ||||||
KDDI Corp. | 2,985 | 14,475 | ||||||
Keyence Corp. | 14,500 | 3,458 | ||||||
Konica Minolta Holdings, Inc. | 347,500 | 4,374 | ||||||
Kubota Corp. | 333,000 | 2,929 | ||||||
Mitsubishi Corp. | 191,800 | 4,551 | ||||||
Mitsubishi Gas Chemical Co., Inc. | 935,000 | 5,647 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 3,125,200 | 16,260 | ||||||
Nintendo Co. Ltd. | 11,400 | 3,831 | ||||||
Nomura Holdings, Inc. | 1,102,100 | 7,603 | ||||||
Sankyo Co. Ltd. | 171,900 | 7,901 | ||||||
Seven & I Holdings Co. Ltd. | 224,200 | 5,725 | ||||||
Shin-Etsu Chemical Co. Ltd. | 267,200 | 15,429 | ||||||
SMC Corp. | 40,800 | 5,856 | ||||||
Sony Financial Holdings, Inc. | 2,609 | 9,416 | ||||||
Sumitomo Corp. | 502,000 | 6,075 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 139,400 | 4,599 | ||||||
Tokyo Electron Ltd. | 91,900 | 6,075 | ||||||
Tokyo Gas Co. Ltd. | 908,000 | 3,857 | ||||||
Tokyo Steel Manufacturing Co. Ltd. | 432,100 | 5,814 | ||||||
Toyoda Gosei Co. Ltd. | 139,100 | 3,820 | ||||||
Toyota Motor Corp. | 388,500 | 15,004 | ||||||
Yahoo! Japan Corp. | 10,630 | 4,062 | ||||||
Yamada Denki Co. Ltd. | 65,480 | 5,093 | ||||||
Total Japan | 227,271 | |||||||
NETHERLANDS - 5.13% | ||||||||
COMMON STOCKS - 5.13% | ||||||||
Akzo Nobel N.V. † | 219,225 | 12,886 | ||||||
Heineken N.V. † | 56,100 | 2,604 | ||||||
ING Groep N.V. | 704,470 | 6,306 | ||||||
Koninklijke Philips Electronics N.V. | 308,897 | 10,438 | ||||||
Randstad Holding N.V. ^ | 55,060 | 2,807 | ||||||
Reed Elsevier N.V. † | 950,052 | 11,279 | ||||||
SBM Offshore N.V. | 265,765 | 5,267 | ||||||
TNT N.V. † | 513,554 | 15,781 | ||||||
Unilever N.V., GDR | 144,180 | 4,406 | ||||||
Total Netherlands | 71,774 | |||||||
NORWAY - 1.94% | ||||||||
COMMON STOCKS - 1.94% | ||||||||
Aker Solutions ASA | 831,450 | 13,908 | ||||||
StatoilHydro ASA | 170,440 | 4,115 | ||||||
Telenor ASA | 640,840 | 9,156 | ||||||
Total Norway | 27,179 | |||||||
PORTUGAL - 0.54% | ||||||||
COMMON STOCKS - 0.54% | ||||||||
Portugal Telecom, SGPS, S.A. † | 747,760 | 7,582 | ||||||
SINGAPORE - 2.58% | ||||||||
COMMON STOCKS - 2.58% | ||||||||
DBS Group Holdings Ltd. | 2,313,182 | 25,628 | ||||||
Singapore Telecommunications Ltd. | 4,703,000 | 10,435 | ||||||
Total Singapore | 36,063 | |||||||
SOUTH KOREA - 2.15% | ||||||||
COMMON STOCKS - 2.15% | ||||||||
Hyundai Heavy Industries Co. Ltd. | 57,700 | 13,007 | ||||||
Hyundai Mobis | 19,500 | 3,238 | ||||||
KB Financial Group, Inc., ADR † | 143,018 | 6,979 | ||||||
KT&G Corp. | 75,564 | 3,811 | ||||||
Samsung Electronics Co. Ltd., GDR ‡ | 7,800 | 2,990 | ||||||
Total South Korea | 30,025 | |||||||
SPAIN - 3.60% | ||||||||
COMMON STOCKS - 3.60% | ||||||||
Amadeus IT Holdings S.A. ^ | 108,600 | 1,735 | ||||||
Banco Santander S.A. | 1,199,374 | 15,017 | ||||||
Enagas S.A. | 229,984 | 4,595 | ||||||
Gamesa Corp. Tecnologica S.A. | 360,310 | 4,453 | ||||||
Grifols S.A. | 401,920 | 5,063 | ||||||
Iberdrola S.A. | 368,865 | 2,938 | ||||||
Repsol YPF S.A. | 257,990 | 6,056 |
See accompanying notes
17
American Beacon International Equity Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
Telefonica S.A. | 467,503 | $ | 10,499 | |||||
Total Spain | 50,356 | |||||||
SWEDEN - 1.60% | ||||||||
COMMON STOCKS - 1.60% | ||||||||
Atlas Copco AB † | 265,000 | 4,310 | ||||||
Skandinaviska Enskilda Banken ^ | 1,107,383 | 7,629 | ||||||
Telefonaktiebolaget LM Ericsson | 898,930 | 10,462 | ||||||
Total Sweden | 22,401 | |||||||
SWITZERLAND - 8.14% | ||||||||
COMMON STOCKS - 8.14% | ||||||||
Adecco S.A. | 130,550 | 7,703 | ||||||
Compagnie Financiere Richemont S.A. | 134,407 | 4,969 | ||||||
Credit Suisse Group AG | 134,300 | 6,144 | ||||||
Givaudan S.A. | 7,174 | 6,245 | ||||||
Julius Baer Group Ltd. | 53,000 | 1,830 | ||||||
Lonza Group AG | 49,816 | 3,908 | ||||||
Nestle S.A. | 162,878 | 7,949 | ||||||
Novartis AG | 435,368 | 22,213 | ||||||
Roche Holding AG | 131,213 | 20,740 | ||||||
Sulzer AG | 32,317 | 3,209 | ||||||
Swiss Reinsurance Co. Ltd. | 100,960 | 4,401 | ||||||
UBS AG | 887,300 | 13,708 | ||||||
Zurich Financial Services AG | 48,556 | 10,826 | ||||||
Total Switzerland | 113,845 | |||||||
UNITED KINGDOM - 20.25% | ||||||||
COMMON STOCKS - 20.25% | ||||||||
Anglo American plc | 182,744 | 7,827 | ||||||
Aviva plc | 1,874,344 | 9,919 | ||||||
BAE Systems plc | 2,071,389 | 10,888 | ||||||
Barclays Bank plc | 863,600 | 4,422 | ||||||
BG Group plc | 308,300 | 5,176 | ||||||
BHP Billiton plc | 155,700 | 4,783 | ||||||
BP plc | 1,773,030 | 15,446 | ||||||
British American Tobacco plc | 280,840 | 8,826 | ||||||
British Sky Broadcasting Group plc | 863,040 | 8,094 | ||||||
Centrica plc | 800,305 | 3,587 | ||||||
GlaxoSmithKline plc | 1,201,832 | 22,269 | ||||||
HSBC Holdings plc | 1,089,996 | 11,217 | ||||||
HSBC Holdings plc † | 1,508,926 | 15,372 | ||||||
Informa plc | 837,593 | 5,085 | ||||||
International Power plc | 597,900 | 3,021 | ||||||
Kingfisher plc | 1,256,400 | 4,801 | ||||||
Lloyds Banking Group plc | 4,600,244 | 4,600 | ||||||
Marks and Spencer Group plc | 510,270 | 2,861 | ||||||
Michael Page International plc | 685,409 | 4,484 | ||||||
Pearson plc | 534,980 | 8,588 | ||||||
Prudential plc | 459,100 | 4,071 | ||||||
Reed Elsevier plc | 596,110 | 4,693 | ||||||
Rexam plc | 1,097,099 | 5,392 | ||||||
Rio Tinto plc | 89,515 | 4,515 | ||||||
Rolls-Royce Group plc C Shares Entitlement May 10 ^ | 132,627,600 | 203 | ||||||
Rolls-Royce Group plc | 1,473,640 | 13,014 | ||||||
Royal Dutch Shell plc, A Shares | 134,200 | 4,199 | ||||||
Royal Dutch Shell plc, A Shares † | 356,178 | 11,178 | ||||||
Royal Dutch Shell plc, B Shares | 454,373 | 13,711 | ||||||
Standard Chartered plc | 328,990 | 8,769 | ||||||
Tesco plc | 615,900 | 4,097 | ||||||
Unilever plc | 426,551 | 12,778 | ||||||
Vodafone Group plc | 11,458,837 | 25,484 | ||||||
WPP Group plc | 352,600 | 3,749 | ||||||
Xstrata plc | 370,100 | 6,129 | ||||||
Total United Kingdom | 283,248 | |||||||
UNITED STATES - 0.71% | ||||||||
COMMON STOCKS - 0.71% | ||||||||
Flextronics International Ltd. ^ | 848,510 | 6,576 | ||||||
Transocean Ltd. ^ | 46,147 | 3,407 | ||||||
Total United States | 9,983 | |||||||
SHORT TERM INVESTMENTS - 3.53% | ||||||||
American Beacon U.S. Government Money Market Select Fund # | 956,093 | 956 | ||||||
JPMorgan U.S. Government Money Market Fund | 48,432,185 | 48,432 | ||||||
Total Short Term Investments | 49,388 | |||||||
SECURITIES LENDING COLLATERAL - 10.26% | ||||||||
American Beacon U.S. Government Money Market Select Fund # | 136,550,764 | 136,551 | ||||||
Wells Fargo Advantage Government Money Market Fund | 7,000,000 | 7,000 | ||||||
Total Securities Lending Collateral | 143,551 | |||||||
TOTAL INVESTMENTS 108.72% — (Cost $1,403,909) | 1,520,934 | |||||||
LIABILITIES, NET OF OTHER ASSETS — (8.72%) | (122,026 | ) | ||||||
TOTAL NET ASSETS - 100.00% | $ | 1,398,908 | ||||||
See accompanying notes
18
American Beacon International Equity Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Percentages are stated as a percent of net assets. | ||
^ | Non-income producing security. | |
† | All or a portion of this security is on loan at April 30, 2010. | |
‡ | Security exempt from registration under the Securities Act of 1933. These securities may be resold to qualified institutional buyers pursuant to Rule 144A. At the period end, the value of these securities amounted to $2,990 or 0.21% of net assets. The Fund has no right to demand registration of these securities. | |
# | The Fund is affiliated by having the same investment advisor. |
Futures Contracts
(dollars in thousands)
Unrealized | ||||||||||||||
Number of | Expiration | Market | Appreciation/ | |||||||||||
Contracts | Date | Value | (Depreciation) | |||||||||||
Australia SPI Index | 51 | Jun 2010 | $ | 5,719 | $ | (53 | ) | |||||||
Canada S&PCDA 60 Index | 51 | Jun 2010 | 7,192 | 118 | ||||||||||
France CAC 40 Index | 131 | Jun 2010 | 6,466 | (216 | ) | |||||||||
Germany DAX Index | 24 | Jun 2010 | 4,891 | 103 | ||||||||||
Hang Seng Index | 12 | May 2010 | 1,614 | (18 | ) | |||||||||
Italy MIB 30 Index | 15 | Jun 2010 | 2,109 | (130 | ) | |||||||||
Netherlands 200 AEX Index | 20 | May 2010 | 1,827 | (42 | ) | |||||||||
Spain IBEX 35 Index | 18 | May 2010 | 2,473 | (228 | ) | |||||||||
Sweden OMX Index | 136 | May 2010 | 1,971 | 36 | ||||||||||
Tokyo FE TOPIX Index | 133 | Jun 2010 | 13,907 | 568 | ||||||||||
UK FTSE 100 Index | 153 | Jun 2010 | 12,898 | (200 | ) | |||||||||
$ | 61,067 | $ | (62 | ) |
Forward Foreign Currency Exchange Contracts
(dollars in thousands)
Unrealized | ||||||||||||||
Settlement Date | Market Value | Gain/(Loss) | ||||||||||||
Contracts To Receive | ||||||||||||||
5,139 | Australian Dollar | 6/18/2010 | $ | 4,730 | $ | 66 | ||||||||
6,055 | Canadian Dollar | 6/18/2010 | 5,961 | 35 | ||||||||||
11,057 | Euro Currency | 6/18/2010 | 14,724 | (359 | ) | |||||||||
1,106,319 | Japanese Yen | 6/18/2010 | 11,782 | (392 | ) | |||||||||
7,458 | Pound Sterling | 6/18/2010 | 11,409 | 170 | ||||||||||
10,604 | Swedish Krona | 6/18/2010 | 1,464 | (25 | ) | |||||||||
5,050 | Swiss Franc | 6/18/2010 | 4,695 | (32 | ) | |||||||||
Total contracts to receive (Payable amount $55,302) | $ | 54,765 | $ | (537 | ) | |||||||||
Net Currency Fluctuation | $ | (537 | ) |
See accompanying notes
19
American Beacon International Equity Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Sector Diversification
Percent of | ||||
Net Assets | ||||
Consumer Discretionary | 13.77 | % | ||
Consumer Staples | 4.85 | % | ||
Energy | 8.37 | % | ||
Financials | 19.78 | % | ||
Health Care | 8.53 | % | ||
Industrials | 15.70 | % | ||
Information Technology | 4.75 | % | ||
Materials | 8.55 | % | ||
Telecommunication Services | 7.23 | % | ||
Utilities | 3.40 | % | ||
Short Term Investments | 13.79 | % | ||
Liabilities, Net of Other Assets | (8.72 | )% | ||
100.00 | % | |||
See accompanying notes
20
American Beacon Funds
Statements of Assets and Liabilities
April 30, 2010 (Unaudited) (in thousands, except share and per share amounts)
Emerging | ||||||||
Markets | International | |||||||
Fund | Equity Fund | |||||||
Assets: | ||||||||
Investments in unaffiliated securities, at value A D | $ | 139,844 | $ | 1,383,427 | ||||
Investments in affiliated securities, at value B | — | 137,507 | ||||||
Foreign currency, at value C | 1,202 | 5,950 | ||||||
Deposit with brokers for futures contracts | — | 6,086 | ||||||
Receivable for investments sold | 979 | 18,181 | ||||||
Dividends and interest receivable | 411 | 5,206 | ||||||
Receivable for fund shares sold | 158 | 3,229 | ||||||
Receivable for tax reclaims | 6 | 701 | ||||||
Receivable for expense reimbursement | 2 | — | ||||||
Prepaid expenses | 28 | 70 | ||||||
Total assets | 142,630 | 1,560,357 | ||||||
Liabilities: | ||||||||
Payable for investments purchased | 1,109 | 14,509 | ||||||
Payable upon return of securities loaned | — | 143,551 | ||||||
Payable for fund shares redeemed | 36 | 663 | ||||||
Payable for variation margin on open futures contracts | 99 | 141 | ||||||
Management and investment advisory fees payable (Note 2) | 335 | 1,409 | ||||||
Administrative service and service fees payable | 12 | 389 | ||||||
Net unrealized depreciation on foreign currency contracts | — | 538 | ||||||
Professional fees payable | 11 | 18 | ||||||
Trustee fees payable | 1 | 27 | ||||||
Prospectus and shareholder reports | 7 | 175 | ||||||
Other liabilities | 16 | 29 | ||||||
Total liabilities | 1,626 | 161,449 | ||||||
Net Assets | $ | 141,004 | $ | 1,398,908 | ||||
Analysis of Net Assets: | ||||||||
Paid-in-capital | 132,868 | 1,497,387 | ||||||
Undistributed net investment income | (452 | ) | 9,868 | |||||
Accumulated net realized (loss) | (20,678 | ) | (224,556 | ) | ||||
Unrealized appreciation of investments, futures contracts, and foreign currency | 29,266 | 116,209 | ||||||
Net assets | $ | 141,004 | $ | 1,398,908 | ||||
Shares outstanding (no par value): | ||||||||
Institutional Class | 795,876 | 32,239,231 | ||||||
Y Class | 81 | 67 | ||||||
Investor Class | 923,678 | 28,609,745 | ||||||
Advisor Class | N/A | 42,012 | ||||||
Retirement Class | N/A | 85 | ||||||
AMR Class | 8,957,873 | 28,124,097 | ||||||
Net asset value, offering and redemption price per share: | ||||||||
Institutional Class | $ | 13.17 | $ | 15.75 | ||||
Y Class | $ | 13.16 | $ | 16.25 | ||||
Investor Class | $ | 12.96 | $ | 15.55 | ||||
Advisor Class | N/A | $ | 15.87 | |||||
Retirement Class | N/A | $ | 15.86 | |||||
AMR Class | $ | 13.23 | $ | 15.84 | ||||
A Cost of investments in unaffiliated securities | $ | 110,680 | $ | 1,266,402 | ||||
B Cost of investments in affiliated securities | $ | — | $ | 137,507 | ||||
C Cost of foreign currency | $ | 1,195 | $ | 5,935 | ||||
D Market value of securities on loan | $ | — | $ | 136,601 |
See accompanying notes
21
American Beacon Funds
Statements of Operations
Six Months Ended April 30, 2010 (Unaudited) (in thousands)
Emerging | ||||||||
Markets | International | |||||||
Fund | Equity Fund | |||||||
Investment Income: | ||||||||
Dividend income from unaffiliated securities (net of foreign taxes) A | $ | 1,229 | $ | 17,928 | ||||
Dividend income from affiliated securities | — | 1 | ||||||
Interest income | 1 | 6 | ||||||
Income derived from securities lending, net | — | 232 | ||||||
Total investment income | 1,230 | 18,167 | ||||||
Expenses: | ||||||||
Management and investment advisory fees (Note 2) | 528 | 2,214 | ||||||
Administrative service fees (Note 2): | ||||||||
Institutional Class | 15 | 756 | ||||||
Investor Class | 17 | 678 | ||||||
Advisor Class | — | 1 | ||||||
AMR Class | 29 | 110 | ||||||
Transfer agent fees: | ||||||||
Institutional Class | — | 17 | ||||||
Investor Class | 2 | 18 | ||||||
AMR Class | 2 | 14 | ||||||
Custody and fund accounting fees | 228 | 226 | ||||||
Professional fees | 15 | 37 | ||||||
Registration fees and expenses | 14 | 47 | ||||||
Service fees (Note 2): | ||||||||
Investor Class | 14 | 810 | ||||||
Advisor Class | — | 1 | ||||||
Distribution fees- Advisor Class (Note 2) | — | 1 | ||||||
Prospectus and shareholder reports | 3 | 110 | ||||||
Trustee fees | 4 | 51 | ||||||
Other expenses | 12 | 86 | ||||||
Total expenses | 883 | 5,177 | ||||||
Net (fees waived and expenses reimbursed)/recouped by Manager (Note 2) | (3 | ) | — | |||||
Net expenses | 880 | 5,177 | ||||||
Net investment income | 350 | 12,990 | ||||||
Realized and unrealized gain (loss) on investments: | ||||||||
Net realized gain (loss) from: | ||||||||
Investments | 9,709 | 23,966 | ||||||
Commission recapture (Note 1) | — | 26 | ||||||
Foreign currency transactions | 315 | 3,445 | ||||||
Futures contracts | 663 | 2,925 | ||||||
Change in net unrealized appreciation or depreciation of: | ||||||||
Investments | 1,260 | 107,434 | ||||||
Foreign currency translations | 2,425 | (88,161 | ) | |||||
Futures contracts | 210 | 1,171 | ||||||
Net gain on investments | 14,582 | 50,806 | ||||||
Net increase in net assets resulting from operations | $ | 14,932 | $ | 63,796 | ||||
A Foreign taxes | $ | 130 | $ | 1,625 |
See accompanying notes
22
American Beacon Funds
Statements of Changes in Net Assets (in thousands)
Emerging Markets Fund | International Equity Fund | |||||||||||||||
Year | ||||||||||||||||
Six Months Ended | Ended October | Six Months Ended | Year Ended | |||||||||||||
April 30, 2010 | 31, 2009 | April 30, 2010 | October 31, 2009 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 350 | $ | 1,224 | $ | 12,990 | $ | 32,804 | ||||||||
Net realized gain (loss) on investments, futures contracts, and foreign currency transactions | 10,687 | (19,055 | ) | 30,362 | (244,402 | ) | ||||||||||
Change in net unrealized appreciation or depreciation of investments, futures contracts, and foreign currency translations | 3,895 | 67,385 | 20,444 | 498,561 | ||||||||||||
Net increase in net assets resulting from operations | 14,932 | 49,554 | 63,796 | 286,963 | ||||||||||||
Distributions to Shareholders: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Institutional Class | (130 | ) | (129 | ) | (15,298 | ) | (22,416 | ) | ||||||||
Investor Class | (131 | ) | (93 | ) | (12,702 | ) | (17,116 | ) | ||||||||
Advisor Class | — | — | — | (61 | ) | |||||||||||
AMR Class | (1,717 | ) | (2,146 | ) | (14,360 | ) | (17,313 | ) | ||||||||
Net realized gain on investments: | ||||||||||||||||
Institutional Class | — | (798 | ) | — | (12,166 | ) | ||||||||||
Investor Class | — | (756 | ) | — | (10,088 | ) | ||||||||||
Advisor Class | — | — | — | (40 | ) | |||||||||||
AMR Class | — | (11,268 | ) | — | (8,489 | ) | ||||||||||
Net distributions to shareholders | (1,978 | ) | (15,190 | ) | (42,360 | ) | (87,689 | ) | ||||||||
Capital Share Transactions: | ||||||||||||||||
Proceeds from sales of shares | 9,319 | 21,046 | 120,375 | 264,266 | ||||||||||||
Reinvestment of dividends and distributions | 1,969 | 15,153 | 39,420 | 81,731 | ||||||||||||
Cost of shares redeemed | (12,941 | ) | (24,071 | ) | (151,084 | ) | (500,348 | ) | ||||||||
Redemption fees | 16 | 18 | 105 | 217 | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | (1,637 | ) | 12,146 | 8,816 | (154,134 | ) | ||||||||||
Net increase in net assets | 11,317 | 46,510 | 30,252 | 45,140 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 129,687 | 83,177 | 1,368,656 | 1,323,516 | ||||||||||||
End of Period * | $ | 141,004 | $ | 129,687 | $ | 1,398,908 | $ | 1,368,656 | ||||||||
*Includes undistributed net investment income (loss) of | $ | (452 | ) | $ | 1,183 | $ | 9,868 | $ | 41,027 |
��
See accompanying notes
23
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
1. Organization and Significant Accounting Policies
American Beacon Funds (the “Trust”) is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, (the “Act”) as a diversified, open-end management investment company. These financial statements and notes to the financial statements relate to the American Beacon Emerging Markets and International Equity Funds (the “Funds”), each a series of the Trust.
American Beacon Advisors, Inc. (the “Manager”) is a wholly-owned subsidiary of Lighthouse Holdings, Inc. and was organized in 1986 to provide business management, advisory, administrative and asset management consulting services to the Trust and other investors.
Class Disclosure
The Funds have multiple classes of shares designed to meet the needs of different groups of investors. The following table sets forth the differences amongst the classes:
Class: | Offered to: | |
Institutional Class | Investors making an initial investment of $250,000 | |
Y Class | Investors making an initial investment of $100,000 | |
Investor Class | General public and investors investing through an intermediary | |
Advisor Class | Investors investing through an intermediary | |
Retirement Class | Investors investing through an intermediary | |
AMR Class | Investors in the tax-exempt retirement and benefit plans of the Manager, AMR Corporation, and its affiliates |
Administrative service fees, service fees and distribution fees vary amongst the classes as described more fully in footnote 2.
Investment income, net capital gains (losses) and all expenses incurred by the Funds are allocated based on the relative net assets of each class, except for service fees and certain other fees and expenses related solely to one class of shares.
Security Valuation
Investments are valued at the close of the New York Stock Exchange (the “Exchange”), normally 4 p.m. ET, each day that the Exchange is open for business. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade.
Debt securities (other than short-term securities) normally are valued on the basis of prices provided by an independent pricing service and may take into account appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. The prices of debt securities may be determined using quotes obtained from brokers.
Investments in mutual funds are valued at the closing net asset value per share of the mutual fund on the day of valuation. Investment grade short-term obligations with 60 days or less to maturity are valued using the amortized cost method, which approximates market value.
Securities for which market prices are not readily available or are not reflective of the fair value of the security, as determined by the Manager, will be priced at fair value following procedures approved by the Board of Trustees (the “Board”).
24
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
Most foreign markets close before the Exchange. Developments that could affect the values of securities that occur between the close of a foreign market and the close of the Exchange normally will not be reflected in security valuations. If such developments are so significant that they will, in the judgment of the pricing committee of the Fund, clearly and materially affect the value of securities, the foreign market closing prices may be adjusted to reflect the fair value of the securities as of the close of the Exchange, as determined in good faith and pursuant to procedures approved by the Board. Adjustments to closing prices to reflect fair value on affected foreign securities may be provided by an independent pricing service. Of the total investments at April 30, 2010, for the Emerging Markets and International Equity Funds $91,816 or 65.1% and $1,062,397 or 75.9%, respectively, were valued at fair value based on procedures established by the Board.
Valuation Inputs
Various inputs may be used to determine the value of the Funds’ investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1 — Quoted prices in active markets for identical securities.
Level 2 — Prices determined using other significant observable inputs. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Level 3 — Prices determined using other significant unobservable inputs. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.
The Funds’ investments are summarized by level based on the inputs used to determine their values. As of April 30, 2010 the Funds’ investments were classified as follows: (in thousands)
Emerging Markets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Preferred Stocks | $ | 3,092 | $ | 312 | $ | — | $ | 3,404 | ||||||||
Common Stocks | 40,779 | 91,504 | — | 132,283 | ||||||||||||
Short Term Investments | 3,552 | 605 | — | 4,157 | ||||||||||||
Total Investments in Securities | $ | 47,423 | $ | 92,421 | $ | — | $ | 139,844 | ||||||||
Futures Contracts | 5,207 | — | — | 5,207 |
International Equity | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Preferred Stocks | $ | — | $ | — | $ | — | $ | — | ||||||||
Common Stocks | 265,598 | 1,062,397 | — | 1,327,995 | ||||||||||||
Short Term Investments | 49,388 | — | — | 49,388 | ||||||||||||
Securities Lending Collateral | 143,551 | — | — | 143,551 | ||||||||||||
Total Investments in Securities | $ | 458,537 | $ | 1,062,397 | $ | — | $ | 1,520,934 | ||||||||
Forward Exchange Contracts — Liabilities | (54,765 | ) | — | — | (54,765 | ) | ||||||||||
Futures Contracts | 61,067 | — | — | 61,067 |
Security Transactions and Investment Income
Security transactions are recorded on the trade date of the security purchase or sale. The Funds may purchase securities with delivery or payment to occur at a later date. At the time the Funds enter into a commitment to purchase a security, the transaction is recorded, and the value of the security is reflected in the net asset value. The value of the security may vary with market fluctuations.
25
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
Dividend income, net of foreign taxes, is recorded on the ex-dividend date except certain dividends from foreign securities which are recorded as soon as the information is available to the Funds. Interest income is earned from settlement date, recorded on the accrual basis, and adjusted, if necessary, for accretion of discounts and amortization of premiums. For financial and tax reporting purposes, realized gains and losses are determined on the basis of specific lot identification.
Currency Translation
All assets and liabilities initially expressed in foreign currency values are converted into U.S. dollar values at the mean of the bid and ask prices of such currencies against U.S. dollars as last quoted by a recognized dealer. Income, expenses and purchases and sales of investments are translated into U.S. dollars at the rate of exchange prevailing on the respective dates of such transactions. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and is reported with all other foreign currency gains and losses in the Funds’ Statements of Operations.
Forward Foreign Currency Contracts
The Funds may enter into forward foreign currency contracts to hedge the exchange rate risk on investment transactions or to hedge the value of the Funds’ securities denominated in foreign currencies. Forward foreign currency contracts are valued at the forward exchange rate prevailing on the day of valuation. The Funds bear the market risk that arises from changes in foreign exchange rates, and accordingly, the unrealized gain (loss) on these contracts is reflected in the accompanying financial statements. The Funds also bear the credit risk if the counterparty fails to perform under the contract.
Futures Contracts
Futures contracts are contracts to buy or sell a standard quantity of securities at a specified price on a future date. The Funds may enter into financial futures contracts as a method for keeping assets readily convertible to cash if needed to meet shareholder redemptions or for other needs while maintaining exposure to the stock or bond market, as applicable. The primary risks associated with the use of futures contracts are the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Upon entering into a futures contract, the Funds are required to set aside or deposit with a broker an amount, termed the initial margin, which typically represents 5% of the face value of the futures contract. The initial margin amount is reflected as a Deposit with broker for futures contracts on the Statements of Assets and Liabilities. Payments to and from the broker, known as variation margin, are required to be made on a daily basis as the price of the futures contract fluctuates. Changes in initial settlement values are accounted for as unrealized appreciation (depreciation) until the contracts are terminated, at which time realized gains and losses are recognized. Futures contracts are valued at the most recent settlement price established each day by the exchange on which they are traded.
Emerging Markets
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2010 (in thousands)
Liability | Fair Value | |||||
Statement of Assets and Liabilities | Derivatives | $92 | ||||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* |
Effect of derivative instruments not accounted for as hedging instruments during the year ended April 30, 2010 (in thousands)
Statement of Operations | Derivative | Fair Value | ||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 663 | |||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | 210 |
26
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
International Equity
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2010 (in thousands)
Statement of Assets and Liabilities | Asset Derivatives | Fair Value | ||||
Net unrealized appreciation on foreign currency contracts | Foreign Exchange Currency Contracts | $ | (537 | ) | ||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* | 62 |
Effect of derivative instruments not accounted for as hedging instruments during the year ended April 30, 2010 (in thousands)
Statement of Operations | Derivative | Fair Value | ||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 2,925 | |||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | 1,171 |
* | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments footnotes. Only current day’s variation margin is reported within the Statements of Assets and Liabilities. |
Dividends to Shareholders
Dividends from net investment income of the Funds normally will be declared and paid at least annually. Distributions, if any, of net realized capital gains are generally paid at least annually and recorded on the ex-dividend date.
Commission Recapture
The Funds have established brokerage commission recapture arrangements with certain brokers or dealers. If the Funds’ investment advisor chooses to execute a transaction through a participating broker, the broker rebates a portion of the commission back to the Funds. Any collateral benefit received through participation in the commission recapture program is directed exclusively to the Funds. This amount is reported with the net realized gain in the Funds’ Statements of Operations.
Allocation of Income, Expenses, Gains and Losses
Income, expenses (other than those attributable to a specific class), gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimated.
Redemption Fees
The Funds impose a 2% redemption fee on shares held for less than 90 days. The fee is deducted from the redemption proceeds and is intended to offset the trading costs, market impact and other costs associated with short-term trading activity in the Funds. The “first-in, first-out” method is used to determine the holding period. The fee is allocated to all classes of the Funds pro-rata based on their respective net assets.
Other
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liability arising out of the performance of their duties to the Trust. In the normal course of business, the Trust enters into contracts that provide indemnification to the other party or parties against potential costs or liabilities. The Trust’s maximum exposure under these arrangements is dependent on claims that may be made
27
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
in the future and, therefore, cannot be estimated. The Trust has had no prior claims or losses pursuant to any such agreement.
2. Transactions with Affiliates
Management Agreement
The Trust and the Manager are parties to a Management Agreement that obligates the Manager to provide or oversee the provision of investment advisory and portfolio management and securities lending services. Investment assets of the Funds are managed by multiple investment advisors that have entered into separate investment advisory agreements with the Manager. As compensation for performing the duties required under the Management Agreement, the Manager receives from the Funds an annualized fee equal to 0.05% of the average daily net assets plus amounts paid by the Manager to the investment advisors hired by the Manager to direct investment activities of the Funds. Management fees paid during the six months ended April 30, 2010 were as follows (dollars in thousands):
Amounts | ||||||||||||||||
Management | Management | paid to Investment | Net Amounts Retained by | |||||||||||||
Fee Rate | Fee | Advisors | Manager | |||||||||||||
Emerging Markets | 0.60%-0.95 | % | $ | 528 | $ | 494 | $ | 34 | ||||||||
International Equity | 0.20%-0.55 | % | $ | 2,214 | $ | 1,865 | $ | 349 |
As compensation for services provided by the Manager in connection with securities lending activities, the lending Fund pays to the Manager, with respect to cash collateral posted by borrowers, a fee up to 25% of the net monthly interest income (the gross interest income earned by the investment of cash collateral, less the amount paid to borrowers and related expenses) from such activities and, with respect to loan fees paid by borrowers when a borrower posts collateral other than cash, a fee up to 25% of such loan fees. This fee is netted against securities lending income in the Statements of Operations. During the six months ended April 30, 2010 securities lending fees paid to the Manager on behalf of the International Equity Fund were $56,123.
Administrative Services Agreement
The Manager and the Trust entered into an Administrative Services Agreement which obligates the Manager to provide or oversee administrative services to the Funds. As compensation for performing the duties required under the Administrative Services Agreement, the Manager receives an annualized fee of 0.30% of the average daily net assets of the Institutional, Y, Investor, Advisor, and Retirement Classes of the Funds and 0.05% of the average daily net assets of the AMR Class of the Funds.
Distribution Plans
The Funds, except for the Advisor and Retirement Classes of the Funds, have adopted a “defensive” Distribution Plan (the “Plan”) in accordance with Rule 12b-1 under the Act, pursuant to which no fees may be charged to the Funds for distribution purposes. However, the Plan authorizes the management and administrative service fees received by the Manager and the investment advisors hired by the Manager to be used for distribution purposes. Under this Plan, the Funds do not intend to compensate the Manager or any other party, either directly or indirectly, for the distribution of Funds shares.
A separate Distribution Plan (the “Distribution Plan”) has been adopted pursuant to Rule 12b-1 under the Act for the Advisor and Retirement Classes of the Funds. Under the Distribution Plan, as compensation for distribution assistance, the Manager receives an annual fee of 0.25% of the average daily net assets of the Advisor Class and 0.50% of the average daily net assets of the Retirement Class. The fee will be payable without regard to whether the amount of the fee is more or less than the actual expenses incurred in a particular month by the Manager for distribution assistance.
28
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
Service Plans
The Manager and the Trust entered into Service Plans that obligate the Manager to oversee additional shareholder servicing of the Y, Investor, Advisor and Retirement Classes. As compensation for performing the duties required under the Service Plans, the Manager receives 0.10% of the average daily net assets of the Y Class, 0.25% of the average daily net assets of the Advisor and Retirement Classes and up to 0.375% of the average daily net assets of the Investor Class of the Funds.
Brokerage Commissions
Affiliated entities of an investment advisor to the Funds received net commissions on purchases and sales of the Funds’ portfolio securities totaling $1,442 and $389 for the Emerging Markets and International Equity Funds, respectively for the six months ended April 30, 2010.
Investment in Affiliated Funds
The Funds may invest in the American Beacon Money Market Select Fund (the “MM Select Fund”) and the American Beacon U.S. Government Money Market Select Fund (the “USG Select Fund”) (collectively the “Select Funds”). Cash collateral received by the Funds in connection with securities lending may be invested in the Select Funds. The Funds and the Select Funds have the same investment advisor and therefore, are considered to be affiliated. The Manager serves as investment advisor to the Select Funds and receives from the Select Funds an annualized management fee of 0.09% of the average daily net assets of the Select Funds. During the six months ended April 30, 2010, fees earned by the Manager from the Select Funds were as follows:
Securities Lending | ||||||||||||
Direct Investments in | Collateral Invested | |||||||||||
Select Funds | in Select Funds | Total | ||||||||||
International Equity Fund | $ | 1,071 | $ | 14,004 | $ | 15,076 |
Interfund Lending Program
Pursuant to an exemptive order by the Securities and Exchange Commission (the “SEC”), the Funds, along with other registered investment companies having management contracts with the Manager, may participate in an interfund lending program as a borrower. This program provides an alternative credit facility allowing the Funds to borrow from other participating Funds. For the six months ended April 30, 2010, the Funds did not utilize the credit facility.
Reimbursement of Expenses
The Manager contractually agreed to reimburse the Emerging Markets Fund to the extent that total annual operating expenses exceeded the Fund’s expense cap. For the six months ended April 30, 2010, the Manager reimbursed expenses as follows:
Expense Cap | ||||||||||||||
11/1/09 | 3/1/10 | Waived or | ||||||||||||
to | to | Reimbursed | ||||||||||||
Fund | Class | 2/28/10 | 4/30/10 | Expenses | ||||||||||
Emerging Markets | Institutional | — | 1.35 | % | $ | 3,142 | ||||||||
Emerging Markets | Y | — | 1.45 | % | — | |||||||||
Emerging Markets | Investor | — | 1.79 | % | 220 |
Expense Reimbursement Plan
The Funds have adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of fees waived or expenses reimbursed for a period of up to three years. However, reimbursement will occur only if the Class’ average net assets have grown or expenses have declined sufficiently to allow reimbursement without causing its expense ratio to exceed the previously agreed upon contractual expense limit. During the
29
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
six months ended April 30, 2010, there were no additional waived fees or reimbursed expenses subject to potential recovery.
3. Federal Income and Excise Taxes
It is the policy of the Fund to comply with the requirements of Subchapter M of the Internal Revenue Code and to distribute substantially all net investment income as well as any net realized capital gains on the sale of investments. Therefore, no federal income or excise tax provision is required.
The Funds do not have any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the four year period ended October 31, 2009 remains subject to examination by the Internal Revenue Service. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statement of Operations.
Dividends are categorized in accordance with income tax regulations which may treat certain transactions differently than U.S. generally accepted accounting principles. Accordingly, the character of distributions and composition of net assets for tax purposes may differ from those reflected in the accompanying financial statements.
The tax character of distributions paid during the six months ended April 30, 2010 and the year ended October 31, 2009 were as follows (in thousands):
Emerging Markets | International Equity | |||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
April 30, | October 31, | April 30, | October 31, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Distributions paid from: | ||||||||||||||||
Ordinary income* | ||||||||||||||||
Institutional Class | $ | 130 | $ | 129 | $ | 15,298 | $ | 22,114 | ||||||||
Investor Class | 131 | 93 | 12,702 | 17,999 | ||||||||||||
Advisor Class | — | — | — | 66 | ||||||||||||
AMR Class | 1,717 | 2,146 | 14,360 | 17,924 | ||||||||||||
Long-term capital gain | ||||||||||||||||
Institutional Class | — | 798 | — | 10,468 | ||||||||||||
Investor Class | — | 756 | — | 9,205 | ||||||||||||
Advisor Class | — | — | — | 35 | ||||||||||||
AMR Class | — | 11,268 | — | 7,878 | ||||||||||||
Total distributions paid | $ | 1,978 | $ | 15,190 | $ | 42,360 | $ | 87,689 |
* | For tax purposes, short-term capital gains are considered ordinary income distributions. |
As of April 30, 2010, the components of distributable earnings on a tax basis were as follows (in thousands):
Emerging | International | |||||||
Markets | Equity | |||||||
Cost basis of investments for federal income tax purposes | $ | 127,667 | $ | 1,442,865 | ||||
Unrealized appreciation | 25,393 | 201,619 | ||||||
Unrealized depreciation | (7,216 | ) | (123,550 | ) | ||||
Net unrealized appreciation | 18,177 | 78,069 | ||||||
Undistributed ordinary income | 297 | 15,907 | ||||||
Undistributed long-term gain | (10,439 | ) | (195,339 | ) | ||||
Other temporary differences | 101 | 2,884 | ||||||
Distributable earnings | $ | 8,136 | $ | (98,479 | ) |
Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences. The temporary differences between financial
30
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
reporting and tax-basis reporting of unrealized appreciation/(depreciation) are attributable primarily to the tax deferral of losses from wash sales, the realization for tax purposes of unrealized gain/(losses) on certain derivative instruments, the realization for tax purposes of unrealized gain/(losses) on investments in passive foreign investment companies, and Section 732 basis adjustments.
Due to inherent differences in the recognition of income, expenses and realized gains/(losses) under U.S. generally accepted accounting principles and federal income tax regulations, permanent differences between book and tax reporting have been identified and appropriately reclassified on the Statements of Assets and Liabilities.
Accordingly, the following amounts represent current year permanent differences derived from foreign currency gains/(losses) from sales of investments in passive foreign investment companies, and Section 732 basis adjustments that have been reclassified as of April 30, 2010 (in thousands):
Emerging | International | |||||||
Markets | Equity | |||||||
Paid-in-capital | $ | — | $ | 419 | ||||
Undistributed net investment income | (7 | ) | (1,789 | ) | ||||
Accumulated net realized gain (loss) | 6 | 1,369 | ||||||
Unrealized depreciation of investments, futures contracts and foreign currency | 1 | 1 |
At April 30, 2010, the capital loss carry forward position for federal income tax purposes was $10,348 and $195,403 for the Emerging Markets and International Equity Funds, respectively, both expiring in 2017.
The Emerging Markets and International Equity Funds utilized $7,658 and $29,318, respectively of net capital loss carryovers for the six months ended April 30, 2010.
4. Investment Transactions
The aggregate cost of purchases and proceeds from sales of investments, other than short-term obligations, for the six months ended April 30, 2010 were (in thousands):
Emerging | International | |||||||
Markets | Equity | |||||||
Purchases | $ | 41,656 | $ | 268,872 | ||||
Sales and maturities | $ | 43,511 | $ | 301,223 |
A summary of the Funds’ direct transactions in the Select Funds for the six months ended April 30, 2009 is set forth below (in thousands):
October 31, 2009 | April 30, 2010 | |||||||||||||||||
Affiliated Fund | Shares/Market Value | Purchases | Sales | Shares/Market Value | ||||||||||||||
International Equity | USG Select Fund | $ | 3,956 | — | $ | 3,000- | $ | 956 |
5. Securities Lending
The International Equity Fund may lend its securities to qualified financial institutions, such as certain broker-dealers, to earn additional income. The borrowers are required to secure their loans continuously with collateral in an amount at least equal to the fair value of the securities loaned and initially in an amount at least equal to 102% of the fair value of domestic securities loaned and 105% of the fair value of international securities loaned. Collateral is monitored and marked to market daily. Daily mark to market amounts are required to be paid to the borrower or received from the borrower by the end of the following business day. This one day settlement for mark to market amounts may result in the collateral being temporarily less than the value of the securities on loan or temporarily more than the required minimum collate ral.
31
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
To the extent that a loan is collateralized by cash, such cash collateral shall be invested by the securities lending agent (the “Agent”) in money market mutual funds, and other short-term investments, provided the investments meet certain quality and diversification requirements.
Securities lending income is generated from the demand premium (if any) paid by the borrower to borrow a specific security and from the return on investment of cash collateral, reduced by negotiated rebate fees paid to the borrower and transaction costs. To the extent that a loan is secured by non-cash collateral, securities lending income is generated as a demand premium reduced by transaction costs. The Fund, the Agent, and the Manager retain 75%, 15%, and 10%, respectively, of the income generated from securities lending.
While securities are on loan, the Fund continues to receive any income associated with that security and any gain or loss in the market price that may occur during the term of the loan.
Securities lending transactions pose certain risks to the Fund, including that the borrower may not provide additional collateral when required or return the securities when due, that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower, that non-cash collateral may be subject to legal constraints in the event of a borrower bankruptcy, and that the cash collateral investments could become illiquid and unable to be used to return collateral to the borrower. The Funds could also experience delays and costs in gaining access to the collateral. The Funds bear the risk of any deficiency in the amount of the cash collateral available for return to the borrower and any action which impairs its ability to liquidate non-cash collateral to satisfy a borrower default.
At April 30, 2010, the value of outstanding securities on loan and the value of collateral was as follows (in thousands):
Market Value of | ||||
Securities on Loan | Non-Cash Collateral | Cash Collateral Posted by Borrower | ||
$ 136,601 | $ — | $ 110,970 |
Cash collateral is listed in the Funds’ Schedules of Investments and is shown on Statements of Assets and Liabilities. Income earned on these investments is included in Income derived from securities lending in the Statements of Operations.
Non-cash collateral received by the Funds may not be sold or re-pledged except to satisfy a borrower default. Therefore, non-cash collateral is not included on the Funds’ Schedules of Investments or Statements of Assets and Liabilities.
6. Capital Share Transactions
The tables below summarize the activity in capital shares for each Class of the Fund (dollars and shares in thousands):
Six Months ended April 30, 2010
Institutional Class | Y Class | Investor Class | AMR Class | |||||||||||||||||||||||||||||
Emerging Markets Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | 45 | $ | 562 | — | $ | 1 | 233 | $ | 2,942 | 448 | $ | 5,814 | ||||||||||||||||||||
Reinvestment of dividends | 10 | 125 | — | — | 10 | 127 | 137 | 1,717 | ||||||||||||||||||||||||
Shares redeemed | (53 | ) | (716 | )* | — | — | * | (187 | ) | (2,362 | )* | (775 | ) | (9,847 | )* | |||||||||||||||||
Net increase (decrease) in shares outstanding | 2 | $ | (29 | ) | — | $ | 1 | 56 | $ | 707 | (190 | ) | $ | (2,316 | ) |
32
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
International Equity Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 2,577 | $ | 40,931 | — | $ | — | 3,435 | $ | 53,705 | |||||||||||||||
Reinvestment of dividends | 802 | 12,580 | — | — | 806 | 12,480 | ||||||||||||||||||
Shares redeemed | (2,716 | ) | (43,147 | )* | — | — | * | (4,756 | ) | (74,569 | )* | |||||||||||||
Net increase (decrease) in shares outstanding | 663 | $ | 10,364 | — | $ | — | (515 | ) | $ | (8,384 | ) |
Advisor Class | Retirement Class | AMR Class | ||||||||||||||||||||||
International Equity Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 3 | $ | 46 | — | $ | — | 1,602 | $ | 25,693 | |||||||||||||||
Reinvestment of dividends | — | — | — | — | 912 | 14,360 | ||||||||||||||||||
Shares redeemed | (74 | ) | (1,205 | )* | — | — | * | (2,031 | ) | (32,058 | )* | |||||||||||||
Net increase (decrease) in shares outstanding | (71 | ) | $ | (1,159 | ) | — | $ | — | 483 | $ | 7,995 |
Year Ended October 31, 2009
Institutional Class | Investor Class | AMR Class | ||||||||||||||||||||||
Emerging Markets Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 119 | $ | 1,207 | 355 | $ | 3,717 | 1,767 | $ | 16,122 | |||||||||||||||
Reinvestment of dividends | 126 | 917 | 114 | 822 | 1,832 | 13,414 | ||||||||||||||||||
Shares redeemed | (59 | ) | (672 | )* | (187 | ) | (1,654 | )* | (2,458 | ) | (21,727 | )* | ||||||||||||
Net increase in shares outstanding | 186 | $ | 1,452 | 282 | $ | 2,885 | 1,141 | $ | 7,809 |
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
International Equity Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 7,840 | $ | 100,116 | — | $ | 1 | 7,880 | $ | 99,626 | |||||||||||||||
Reinvestment of dividends | 2,451 | 29,191 | — | — | 2,263 | 26,656 | ||||||||||||||||||
Shares redeemed | (21,920 | ) | (270,772 | )* | — | — | * | (13,941 | ) | (175,030 | )* | |||||||||||||
Net increase (decrease) in shares outstanding | (11,629 | ) | $ | (141,465 | ) | — | $ | 1 | (3,798 | ) | $ | (48,748 | ) |
Advisor Class | Retirement Class | AMR Class | ||||||||||||||||||||||
International Equity Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 21 | $ | 262 | — | $ | 1 | 4,956 | $ | 64,260 | |||||||||||||||
Reinvestment of dividends | 7 | 82 | — | — | 2,157 | 25,802 | ||||||||||||||||||
Shares redeemed | (35 | ) | (464 | )* | — | — | * | (4,240 | ) | (53,865 | )* | |||||||||||||
Net increase (decrease) in shares outstanding | (7 | ) | $ | (120 | ) | — | $ | 1 | 2,873 | $ | 36,197 |
* | Net of Redemption Fees |
7. Subsequent Events
Management has evaluated the possibility of subsequent events existing in the Funds’ financial statements. Management has determined that there are no material events that would require disclosure in the Funds’ financial statements.
33
American Beacon Emerging Markets Fund
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||||||||||
Six | ||||||||||||||||||||||||||||||||
Months | March | Six Months | ||||||||||||||||||||||||||||||
Ended April 30, | Year Ended October 31, | 01 to April 30, | Ended April | |||||||||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2010 | 30, 2010 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.95 | $ | 9.00 | $ | 24.20 | $ | 17.42 | $ | 15.10 | $ | 12.64 | $ | 12.29 | $ | 11.77 | ||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income | 0.03 | 0.05 | 0.23 | 0.26 | 0.11 | 0.15 | 0.03 | 0.01 | ||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 1.35 | 4.42 | (11.78 | ) | 9.11 | 4.63 | 3.45 | 0.84 | 1.33 | |||||||||||||||||||||||
Total income (loss) from investment operations | 1.38 | 4.47 | (11.55 | ) | 9.37 | 4.74 | 3.60 | 0.87 | 1.34 | |||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.16 | ) | (0.21 | ) | (0.10 | ) | (0.10 | ) | (0.21 | ) | (0.06 | ) | — | (0.15 | ) | |||||||||||||||||
Distributions from net realized gains on securities | — | (1.31 | ) | (3.55 | ) | (2.49 | ) | (2.21 | ) | (1.08 | ) | — | — | |||||||||||||||||||
Total distributions | (0.16 | ) | (1.52 | ) | (3.65 | ) | (2.59 | ) | (2.42 | ) | (1.14 | ) | — | (0.15 | ) | |||||||||||||||||
Redemption fees added to beneficial interestsA | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net asset value, end of period | $ | 13.17 | $ | 11.95 | $ | 9.00 | $ | 24.20 | $ | 17.42 | $ | 15.10 | $ | 13.16 | $ | 12.96 | ||||||||||||||||
Total returnE | 11.66 | %B | 60.56 | % | (55.59 | )% | 60.83 | % | 34.58 | % | 30.03 | % | 7 .08 | %B | 11.42 | %B | ||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 10,481 | $ | 9,494 | $ | 5,478 | $ | 13,773 | $ | 16,552 | $ | 9,348 | $ | 1 | $ | 11,970 | ||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||
Expenses, net of waivers | 1.42 | % | 1.66 | % | 1.38 | % | 1.60 | % | 1.56 | % | 1.52 | % | 1.51 | %C | 1.76 | % | ||||||||||||||||
Expenses, before waivers | 1.48 | % | 1.66 | % | 1.38 | % | 1.60 | % | 1.56 | % | 1.52 | % | 1.51 | %C | 1.76 | % | ||||||||||||||||
Net investment income, net of waivers | 0.38 | % | 0.95 | % | 1.35 | % | 0.93 | % | 0.80 | % | 1.22 | % | 1.39 | %C | 0.07 | % | ||||||||||||||||
Net investment income, before waivers | 0.32 | % | 0.95 | % | 1.35 | % | 0.93 | % | 0.80 | % | 1.22 | % | 1.39 | %C | 0.07 | % | ||||||||||||||||
Portfolio turnover rate | 32 | %B | 70 | % | 82 | % | 81 | % | 67 | % | 63 | % | 32 | %B,D | 32 | %B |
A | Amounts represent less than $0.01 per share. | |
B | Not annualized. | |
C | Annualized. | |
D | Portfolio turnover rate is for the period from November 1, 2009 through April 30, 2010. | |
E | May include adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net assets values may differ from the net asset value and returns for shareholder transactions. |
34
AMR Class | ||||||||||||||||||||||||||||||||||||||||||||
Six | ||||||||||||||||||||||||||||||||||||||||||||
Months | ||||||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, | April 30, | Year Ended October 31, | ||||||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
$ | 8.85 | $ | 23.91 | $ | 17.22 | $ | 14.98 | $ | 12.53 | $ | 12.02 | $ | 9.06 | $ | 24.37 | $ | 17.52 | $ | 15.17 | $ | 12.68 | |||||||||||||||||||||||
0.04 | 0.17 | 0.11 | 0.09 | 0.15 | 0.04 | 0.09 | 0.33 | 0.19 | 0.15 | 0.24 | ||||||||||||||||||||||||||||||||||
4.35 | (11.60 | ) | 9.11 | 4.55 | 3.41 | 1.36 | 4.43 | (11.91 | ) | 9.30 | 4.65 | 3.42 | ||||||||||||||||||||||||||||||||
4.39 | (11.43 | ) | 9.22 | 4.64 | 3.56 | 1.40 | 4.52 | (11.58 | ) | 9.49 | 4.80 | 3.66 | ||||||||||||||||||||||||||||||||
(0.16 | ) | (0.08 | ) | (0.04 | ) | (0.19 | ) | (0.03 | ) | (0.19 | ) | (0.25 | ) | (0.18 | ) | (0.15 | ) | (0.24 | ) | (0.09 | ) | |||||||||||||||||||||||
(1.31 | ) | (3.55 | ) | (2.49 | ) | (2.21 | ) | (1.08 | ) | — | (1.31 | ) | (3.55 | ) | (2.49 | ) | (2.21 | ) | (1.08 | ) | ||||||||||||||||||||||||
(1.47 | ) | (3.63 | ) | (2.53 | ) | (2.40 | ) | (1.11 | ) | (0.19 | ) | (1.56 | ) | (3.73 | ) | (2.64 | ) | (2.45 | ) | (1.17 | ) | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
$ | 11.77 | $ | 8.85 | $ | 23.91 | $ | 17.22 | $ | 14.98 | $ | 13.23 | $ | 12.02 | $ | 9.06 | $ | 24.37 | $ | 17.52 | $ | 15.17 | |||||||||||||||||||||||
60.24 | % | (55.75 | )% | 60.38 | % | 34.01 | % | 29.86 | % | 11.73 | %B | 61.01 | % | (55.48 | )% | 61.28 | % | 34.88 | % | 30.45 | % | |||||||||||||||||||||||
$ | 10,208 | $ | 5,183 | $ | 11,694 | $ | 5,841 | $ | 2,592 | $ | 118,552 | $ | 109,985 | $ | 72,516 | $ | 271,726 | $ | 135,146 | $ | 94,864 | |||||||||||||||||||||||
1 .96 | % | 1.72 | % | 1.96 | % | 2.04 | % | 1.75 | % | 1.23 | % | 1.42 | % | 1.17 | % | 1.37 | % | 1.30 | % | 1.25 | % | |||||||||||||||||||||||
1.96 | % | 1.72 | % | 1.96 | % | 1.91 | % | 2.01 | % | 1.23 | % | 1.42 | % | 1.17 | % | 1.37 | % | 1.30 | % | 1.25 | % | |||||||||||||||||||||||
0.65 | % | 1.00 | % | 0.65 | % | 0.49 | % | 1.16 | % | 0.57 | % | 1.27 | % | 1.46 | % | 1.25 | % | 1.01 | % | 1.60 | % | |||||||||||||||||||||||
0.65 | % | 1.00 | % | 0.65 | % | 0.62 | % | 0.90 | % | 0.57 | % | 1.27 | % | 1.46 | % | 1.25 | % | 1.01 | % | 1.60 | % | |||||||||||||||||||||||
70 | % | 82 | % | 81 | % | 67 | % | 63 | % | 32 | %B | 70 | % | 82 | % | 81 | % | 67 | % | 63 | % |
35
American Beacon International Equity Fund
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | |||||||||||||||||||||||||||
Six | Six | |||||||||||||||||||||||||||
Months | Months | |||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||
April 30, | Year Ended October 31, | April 30, | ||||||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2010 | ||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 15.51 | $ | 13.13 | $ | 27.32 | $ | 24.68 | $ | 20.98 | $ | 18.47 | $ | 15.52 | ||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||
Net investment incomeA,B | 0.15 | 0.54 | 0.77 | 0.65 | 0.60 | 0.44 | 0.15 | |||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized)A | 0.58 | 2.78 | (11.60 | ) | 4.31 | 4.86 | 2.31 | 0.58 | ||||||||||||||||||||
Total income (loss) from investment operations | 0.73 | 3.32 | (10.83 | ) | 4.96 | 5.46 | 2.75 | 0.73 | ||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.49 | ) | (0.61 | ) | (0.70 | ) | (0.50 | ) | (0.43 | ) | (0.24 | ) | — | |||||||||||||||
Distributions from net realized gains on securities | — | (0.33 | ) | (2.66 | ) | (1.82 | ) | (1.33 | ) | — | — | |||||||||||||||||
Total distributions | (0.49 | ) | (0.94 | ) | (3.36 | ) | (2.32 | ) | (1.76 | ) | (0.24 | ) | — | |||||||||||||||
Redemption fees added to beneficial interestC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||
Net asset value, end of period | $ | 15.75 | $ | 15.51 | $ | 13.13 | $ | 27.32 | $ | 24.68 | $ | 20.98 | $ | 16.25 | ||||||||||||||
Total returnG | 4 .69 | %D | 27.44 | % | (44.81 | )% | 21.54 | % | 27.55 | % | 14.99 | % | 4.70 | %D | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 507,896 | $ | 489,837 | $ | 567,414 | $ | 1,686,668 | $ | 1,549,521 | $ | 1,286,441 | $ | 1 | ||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||
Expenses, net of waiversA | 0.70 | % | 0.73 | % | 0.66 | % | 0.67 | % | 0.71 | % | 0.70 | % | 0.71 | % | ||||||||||||||
Expenses, before waiversA | 0.70 | % | 0.73 | % | 0.66 | % | 0.67 | % | 0.71 | % | 0.70 | % | 0.86 | % | ||||||||||||||
Net investment income, net of waiversA | 1.90 | % | 2.76 | % | 2.91 | % | 2.46 | % | 2.52 | % | 2.17 | % | 1.91 | % | ||||||||||||||
Net investment income (loss), before waiversA | 1.90 | % | 2.76 | % | 2.91 | % | 2.46 | % | 2.52 | % | 2.17 | % | 1.76 | % | ||||||||||||||
Portfolio turnover rateE | 20 | %D | 41 | % | 31 | % | 38 | % | 40 | % | 37 | % | 20 | %D |
A | The per share amounts and ratios reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the American Beacon International Equity Portfolio through February 28, 2006. | |
B | Class expenses per share were subtracted from net investment income per share for the Fund before class expenses to determine net investment income per share through October 31, 2005. | |
C | Amounts represent less than $0.01 per share. | |
D | Not annualized. | |
E | The International Equity Fund invested all of its investable assets in the American Beacon International Equity Portfolio through February 28, 2006. Portfolio turnover rate through February 28, 2006 is that of the American Beacon International Equity Portfolio. | |
F | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. | |
G | May include adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net assets values may differ from the net asset value and returns for shareholder transactions. | |
H | Annualized. |
36
Investor Class | ||||||||||||||||||||||||||||
Six | ||||||||||||||||||||||||||||
August | Months | |||||||||||||||||||||||||||
3 to | Ended | |||||||||||||||||||||||||||
October | April 30, | Year Ended October 31, | ||||||||||||||||||||||||||
31, 2009 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||
$ | 14.89 | $ | 15.30 | $ | 12.95 | $ | 26.99 | $ | 24.42 | $ | 20.79 | $ | 18.31 | |||||||||||||||
0.04 | 0.12 | 0.37 | 0.66 | 0.58 | 0.50 | 0.41 | ||||||||||||||||||||||
�� | 0.59 | 0.57 | 2.87 | (11.41 | ) | 4.26 | 4.84 | 2.29 | ||||||||||||||||||||
0.63 | 0.69 | 3.24 | (10.75 | ) | 4.84 | 5.34 | 2.70 | |||||||||||||||||||||
— | (0.44 | ) | (0.56 | ) | (0.63 | ) | (0.45 | ) | (0.38 | ) | (0.22 | ) | ||||||||||||||||
— | — | (0.33 | ) | (2.66 | ) | (1.82 | ) | (1.33 | ) | — | ||||||||||||||||||
— | (0.44 | ) | (0.89 | ) | (3.29 | ) | (2.27 | ) | (1.71 | ) | (0.22 | ) | ||||||||||||||||
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||
$ | 15.52 | $ | 15.55 | $ | 15.30 | $ | 12.95 | $ | 26.99 | $ | 24.42 | $ | 20.79 | |||||||||||||||
4.23 | %D | 4.52 | %D | 27.08 | % | (44.96 | )% | 21.22 | % | 27.20 | % | 14.80 | % | |||||||||||||||
$ | 1 | $ | 444,863 | $ | 445,596 | $ | 426,473 | $ | 909,385 | $ | 771,298 | $ | 560,770 | |||||||||||||||
0.69 | %H | 1.06 | % | 1.05 | % | 0.92 | % | 0.93 | % | 0.96 | % | 0.95 | % | |||||||||||||||
0.69 | %H | 1.06 | % | 1.05 | % | 0.92 | % | 0.93 | % | 0.96 | % | 0.95 | % | |||||||||||||||
1.00 | %H | 1.53 | % | 2.45 | % | 2.82 | % | 2.26 | % | 2.25 | % | 1.96 | % | |||||||||||||||
1.00 | %H | 1.53 | % | 2.45 | % | 2.82 | % | 2.26 | % | 2.25 | % | 1.96 | % | |||||||||||||||
41 | %F | 20 | %D | 41 | % | 31 | % | 38 | % | 40 | % | 37 | % |
37
American Beacon International Equity Fund
Financial Highlights
(For a share outstanding throughout the period)
Advisor Class | ||||||||||||||||||||||||
Six | ||||||||||||||||||||||||
Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
April 30, | Year Ended October 31, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 15.20 | $ | 12.86 | $ | 26.83 | $ | 24.24 | $ | 20.61 | $ | 18.24 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income A,B | 0.82 | 0.31 | 0.62 | 0.56 | 0.46 | 0.37 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) A | (0.15 | ) | 2.86 | (11.35 | ) | 4.20 | 4.76 | 2.26 | ||||||||||||||||
Total income (loss) from investment operations | 0.67 | 3.17 | (10.73 | ) | 4.76 | 5.22 | 2.63 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Dividends from net investment income | — | (0.50 | ) | (0.58 | ) | (0.35 | ) | (0.26 | ) | (0.26 | ) | |||||||||||||
Distributions from net realized gains on securities | — | (0.33 | ) | (2.66 | ) | (1.82 | ) | (1.33 | ) | — | ||||||||||||||
Total distributions | — | (0.83 | ) | (3.24 | ) | (2.17 | ) | (1.59 | ) | (0.26 | ) | |||||||||||||
Redemption fees added to beneficial interest C | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||
Net asset value, end of period | $ | 15.87 | $ | 15.20 | $ | 12.86 | $ | 26.83 | $ | 24.24 | $ | 20.61 | ||||||||||||
Total return G | 4.41 | %D | 26.58 | % | (45.10 | )% | 21.00 | % | 26.73 | % | 14.51 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 667 | $ | 1,722 | $ | 1,546 | $ | 4,932 | $ | 4,740 | $ | 2,987 | ||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||
Expenses, net of waivers A | 1.26 | % | 1.44 | % | 1.19 | % | 1.12 | % | 1.16 | % | 1.21 | % | ||||||||||||
Expenses, before waivers A | 1.26 | % | 1.45 | % | 1.19 | % | 1.15 | % | 1.19 | % | 1.21 | % | ||||||||||||
Net investment income, net of waivers A | 1.44 | % | 2.26 | % | 2.36 | % | 2.04 | % | 2.09 | % | 1.70 | % | ||||||||||||
Net investment income (loss), before waivers A | 1.44 | % | 2.25 | % | 2.36 | % | 2.01 | % | 2.05 | % | 1.70 | % | ||||||||||||
Portfolio turnover rate E | 20 | % D | 41 | % | 31 | % | 38 | % | 40 | % | 37 | % |
A | The per share amounts and ratios reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the American Beacon International Equity Portfolio through February 28, 2006. | |
B | Class expenses per share were subtracted from net investment income per share for the Fund before class expenses to determine net investment income per share through October 31, 2005. | |
C | Amounts represent less than $0.01 per share. | |
D | Not annualized. | |
E | The International Equity Fund invested all of its investable assets in the American Beacon International Equity Portfolio through February 28, 2006. Portfolio turnover rate through February 28, 2006 is that of the American Beacon International Equity Portfolio. | |
F | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. | |
G | May include adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net assets values may differ from the net asset value and returns for shareholder transactions. | |
H | Annualized. |
38
Retirement Class | AMR Class | |||||||||||||||||||||||||||||||
Six | Six | |||||||||||||||||||||||||||||||
Months | Months | |||||||||||||||||||||||||||||||
Ended | May 1 to | Ended | ||||||||||||||||||||||||||||||
April 30, | October | April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||
2010 | 31, 2009 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
$ | 15.20 | $ | 11.78 | $ | 15.61 | $ | 13.25 | $ | 27.54 | $ | 24.86 | $ | 21.12 | $ | 18.58 | |||||||||||||||||
0.09 | 0.12 | 0.17 | 0.37 | 0.72 | 0.73 | 0.63 | 0.50 | |||||||||||||||||||||||||
0.57 | 3.30 | 0.58 | 2.99 | (11.58 | ) | 4.33 | 4.92 | 2.33 | ||||||||||||||||||||||||
0.66 | 3.42 | 0.75 | 3.36 | (10.86 | ) | 5.06 | 5.55 | 2.83 | ||||||||||||||||||||||||
— | — | (0.52 | ) | (0.67 | ) | (0.77 | ) | (0.56 | ) | (0.48 | ) | (0.29 | ) | |||||||||||||||||||
— | — | — | (0.33 | ) | (2.66 | ) | (1.82 | ) | (1.33 | ) | — | |||||||||||||||||||||
— | — | (0.52 | ) | (1.00 | ) | (3.43 | ) | (2.38 | ) | (1.81 | ) | (0.29 | ) | |||||||||||||||||||
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||
$ | 15.86 | $ | 15.20 | $ | 15.84 | $ | 15.61 | $ | 13.25 | $ | 27.54 | $ | 24.86 | $ | 21.12 | |||||||||||||||||
4.34 | %D | 29.03 | %D | 4.83 | %D | 27.70 | % | (44.65 | )% | 21.86 | % | 27.88 | % | 15.32 | % | |||||||||||||||||
$ | 1 | $ | 1 | $ | 445,480 | $ | 431,499 | $ | 328,083 | $ | 672,680 | $ | 563,231 | $ | 448,096 | |||||||||||||||||
1.49 | % | 1.48 | %H | 0.45 | % | 0.48 | % | 0.41 | % | 0.42 | % | 0.45 | % | 0.44 | % | |||||||||||||||||
1.49 | % | 1.48 | %H | 0.45 | % | 0.48 | % | 0.41 | % | 0.42 | % | 0.45 | % | 0.44 | % | |||||||||||||||||
1.12 | % | 1.72 | %H | 2.15 | % | 3.00 | % | 3.24 | % | 2.77 | % | 2.76 | % | 2.49 | % | |||||||||||||||||
1.12 | % | 1.72 | %H | 2.15 | % | 3.00 | % | 3.24 | % | 2.77 | % | 2.76 | % | 2.49 | % | |||||||||||||||||
20 | %D | 41 | %F | 20 | %D | 41 | % | 31 | % | 38 | % | 40 | % | 37 | % |
39
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Delivery of Documents
To reduce expenses, your financial institution may mail only one copy of the Prospectus, Annual Report and Semi-Annual Report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please contact your financial institution. Delivery of individual copies will commence thirty days after receiving your request.
If you invest in the Fund through a financial institution, you may be able to receive the Fund’s regulatory mailings, such as the Prospectus, Annual Report and Semi-Annual Report, by e-mail. If you are interested in this option, please go to www.icsdelivery.com and search for your financial institution’s name or contact your financial institution directly.
To obtain more information about the Fund:
![]() | ![]() | |
By E-mail: | On the Internet: | |
american_beacon.funds@ambeacon.com | Visit our website at www.americanbeaconfunds.com |
![]() | ![]() | |
By Telephone: | By Mail: | |
Institutional, Y, Investor, Advisor and Retirement Classes | American Beacon Funds | |
Call (800) 658-5811 | P.O. Box 219643 | |
AMR ClassSM | Kansas City, MO 64121-9643 | |
Call (800) 345-2345 |
Availability of Quarterly Portfolio Schedules | Availability of Proxy Voting Policy and Records | |
In addition to the Schedule of Investments provided in each semi-annual and annual report, the Fund files a complete schedule of its portfolio holdings with the Securities and Exchange Commission (“SEC”) on Form N-Q as of the first and third fiscal quarters. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room, 450 Fifth Street, NW, Washington, DC 20549. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330. A complete schedule of the Fund’s portfolio holdings is also available on the Funds’ website (www.americanbeaconfunds.com) approximately thirty days after the end of each month. | A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Fund’s Statement of Additional Information, is available free of charge on the Fund’s website (www.americanbeaconfunds.com) and by calling 1-800-967-9009 or by accessing the SEC’s website at www.sec.gov. The Fund’s proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Fund’s Forms N-PX are available on the SEC’s website at www.sec.gov. The Fund’s proxy voting record may also be obtained by calling 1-800-967-9009. |
Fund Service Providers:
Custodian
State Street Bank and Trust Boston, Massachusetts | Transfer Agent
Boston Financial Data Services Kansas City, Missouri | Independent Registered Public Accounting Firm
Ernst & Young LLP Dallas, Texas | Distributor
Foreside Fund Services, LLC Portland, Maine |
This report is prepared for shareholders of the American Beacon Funds and may be distributed to others only if preceded or accompanied by a current prospectus.
American Beacon Funds, American Beacon Emerging Markets Fund and American Beacon International Equity Fund are service marks of American Beacon Advisors, Inc.
SAR 04//10
00074814
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About American Beacon Advisors
Since 1986, American Beacon Advisors has offered a variety of products and investment advisory services to numerous institutional and retail clients, including a variety of mutual funds, corporate cash management, and separate account management.
Our clients include defined benefit plans, defined contribution plans, foundations, endowments, corporations, financial planners, and other institutional investors. With American Beacon Advisors, you can put the experience of a multi-billion dollar asset management firm to work for your company.
Contents
Message from American Beacon | 1 | |||
Market and Performance Overviews | 2-10 | |||
American Beacon Schedules of Investments | ||||
10 | ||||
Large Cap Growth Fund | 20 | |||
Mid-Cap Value Fund | 23 | |||
Additional Information | Back Cover |
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. Investing in the securities of mid-capitalization companies involves greater risk and the possibility of greater price volatility than investing in larger capitalization and more established companies.
Any opinions herein, including forecasts, reflect our judgment as of the end of the reporting period and are subject to change. Each advisor’s strategies and the Fund’s portfolio composition will change depending on economic and market conditions. This report is not a complete analysis of market conditions and therefore, should not be relied upon as investment advice. Although economic and market information has been compiled from reliable sources, American Beacon Advisors, Inc. makes no representation as to the completeness or accuracy of the statements contained herein. |
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Fellow Shareholders,
Over the past six months, one universal theme seems to have emerged: while sudden and significant volatility may characterize the new economic world order, it doesn’t mean investors can’t benefit. Opportunity abounds for those who know how to capitalize on it.
Fortunately, this theme also underlies our investment philosophy at American Beacon:
With portfolios invested for the new economic reality—and conservatively managed for the longer term—we believe investors are better positioned to ride out the inevitable economic storms, whenever and wherever they occur.
It’s a philosophy that has served our shareholders well. It also explains how, in the face of continued weakness in the U.S. job and housing markets and mounting sovereign debt worries in Europe, our domestic equity-exposed funds could generate such respectable returns for the six-month period ended April 30, 2010. The American Beacon Balanced Fund (Institutional Class) returned 11.35%; the American Beacon Large Cap Growth Fund (Institutional Class) generated 14.28% and the American Beacon Mid-Cap Value Fund (Institutional Class) rose an impressive 25.05% over this period. Please note that the recent growth rate in the stock market has produced short-term returns that are not typical and may not continue in the future.
As global volatility has become the new norm, our focus at American Beacon remains trained on anticipating opportunities and meeting the challenges investors face today and will likely face tomorrow. This is what drives the composition of our fund line-up and the development of our new offerings in the last year.
It’s also a reflection of our commitment to you, a commitment we summarize as: Oversight 360°. Ours is a continuous commitment to cast a watchful and analytical eye over all the factors that influence our fellow shareholders’ investments.
As you review the enclosed market overview, portfolio listings, and detailed financial data, please know that we welcome the opportunity to serve your financial needs. To obtain further details about the American Beacon Funds family or to access your account information, please visit our website at www.americanbeaconfunds.com.
Thank you for your continued investment in the American Beacon Funds and know that we remain dedicated to offering you and your advisor the level of service and broad range of well-managed investment products you’ve come to expect from us.
Best Regards, | ||
![]() | ||
Gene L. Needles, Jr. | ||
President | ||
American Beacon Funds |
American Beacon Funds | 1 | April 30, 2010 |
Domestic Equity Market Overview
April 30, 2010 (Unaudited)
In the face of continued weakness in the U.S. employment rate and the U.S. housing market and mounting sovereign debt worries abroad, the S&P 500 still managed to return an impressive 16.43% for the six months ended April 30, 2010. Buoyed by relatively healthy corporate earnings, the broader market performance reflected the economic optimism represented by: resilient personal spending on the part of the U.S. consumer; improved credit market conditions; and enhanced corporate efficiency. Still, corporate earnings remain below the long-term trend. Earnings still have room to grow, which bodes well for investors.
Another positive for investors comes from the fact that the retrenchment by Corporate America in the form of cost-cutting and improved operating efficiencies, which became apparent as 2009’s fourth quarter earnings season unfolded, is expected to continue providing added operating leverage. This was hardly an insignificant trend. During the fourth quarter, incremental pre-tax margins for companies in the S&P 500 Index were an astounding 64%, in other words, every $1 in incremental revenue gain resulted in $0.64 in additional pre-tax earnings. This improved corporate free cash flow put substantial cash reserves back onto balance sheets. That cash was expected to find its way into investors’ hands through increased dividends and/or share repurchases.
Despite flat income growth, the consumer resurfaced during the last six months, implying that there may have been an accompanying decline in the savings rate. Willingness of the consumer to spend was significant since consumer spending comprises two-thirds of the U.S. economy (based on GDP), making it a critical factor in gauging economic progress.
In addition to the consumer, other signs of economic expansion emerged since last October: productivity recovered, while inflation stayed in check, and the Fed remained accommodative. Cyclical sectors naturally performed well in this environment. Consumer Discretionary, Industrial, and Financial companies led the U.S. equity markets in returns, while Telecommunications, Energy, and Consumer Staples lagged. Value stocks also remained in favor, outpacing their growth counterparts across the market cap spectrum.
We continue to find compelling investment opportunities as the economic recovery builds momentum. Three core factors provide support for our optimism:
• | Corporate earnings and the U.S. economy are recovering from one of the deepest recessions since the Great Depression, which should amplify the magnitude of the equity market’s recovery. | ||
• | Companies have retrenched to such a level that modest increases in demand should be disproportionately accretive to earnings. | ||
• | The recovery of value stocks tends to carry on for several successive years following sizable market dislocations akin to 2008. |
With these dynamics underlying the domestic equity market, we feel there is some cause for continued investor optimism for the remainder of the year.
2
Performance Overview
American Beacon Balanced FundSM
April 30, 2010 (Unaudited)
The Balanced Fund’s Institutional Class returned 11.35% for the six months ended April 30, 2010, lagging the 60% Russell 1000® Value Index/40% Barclays Capital Aggregate Index benchmark return of 11.56% but outperforming the Lipper Mixed Asset Target Allocation Growth Funds Index return of 11.10% for the same period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/10 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,6) | 11.35 | % | 31.47 | % | 3.80 | % | 6.19 | % | ||||||||
Y Class (1,2,6) | 11.27 | % | 31.37 | % | 3.78 | % | 6.18 | % | ||||||||
Investor Class(1,6) | 11.17 | % | 31.01 | % | 3.53 | % | 5.92 | % | ||||||||
Advisor Class(1,3,6) | 11.11 | % | 30.82 | % | 3.25 | % | 5.78 | % | ||||||||
AMR Class(1,6) | 11.53 | % | 31.81 | % | 4.07 | % | 6.48 | % | ||||||||
Balanced Composite Index (4) | 11.56 | % | 27.88 | % | 3.67 | % | 4.99 | % | ||||||||
Russell 1000 Value Index(5) | 17.77 | % | 42.28 | % | 1.93 | % | 3.48 | % | ||||||||
Barclays Capital Aggregate Index(5) | 2.54 | % | 8.30 | % | 5.38 | % | 6.43 | % | ||||||||
Lipper Mixed-Asset Target Allocations Growth Funds Index(5) | 11.10 | % | 32.44 | % | 4.16 | % | 4.15 | % |
* | Not annualized | |
1. | Performance shown is historical and may not be indicative of future returns. Please note that the recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please call 1-800-967-9009 or visit www.americanbeaconfunds.com. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. | |
2. | Fund performance for the six month, one-year, five-year and ten-year periods represents the total returns achieved by the Institutional Class from 4/30/00 up to 3/1/10, the inception date of the Y Class, and the returns of the Y Class since its inception. Expenses of the Institutional Class are lower than those of the Y Class. Therefore, total returns shown may be lower than they would have been had the Y Class been in existence since 4/30/00. | |
3. | Fund performance for the five-year and ten-year periods represents the total returns achieved by the Investor Class from 4/30/00 up to 5/31/05, the inception date of the Advisor Class, and the returns of the Advisor Class since its inception. Expenses of the Advisor Class are higher than those of the Investor Class. Therefore, total returns shown may be higher than they would have been had the Advisor Class been in existence since 4/30/00. A portion of the fees charged to the Advisor Class of the Fund was waived in 2005. Performance prior to waiving fees was lower than actual returns shown for 2005. | |
4. | To reflect the Fund’s allocation of its assets between investment grade fixed-income securities and equity securities, the returns of the Russell 1000 Value Index and the Barclays Capital Aggregate Index have been combined in a 60%/40% proportion. | |
5. | The Russell 1000 Value Index is an unmanaged index of those stocks in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values. Russell 1000 Value Index and Russell 1000 Index are registered trademarks of Frank Russell Company. The Barclays Capital Aggregate Index is a market value weighted index of government, corporate, mortgage-backed and asset-backed fixed-rate debt securities of all maturities. The Lipper Mixed-Asset Target Allocation Growth Funds Index tracks the results of the 30 largest mutual funds in the Lipper Mixed-Asset Target Allocation Growth Funds category. Lipper is an independent mutual fund research and ranking service. One cannot directly invest in an index. | |
6. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor and AMR Class shares was 0.61%, 0.71%, 0.90%, 1.10% and 0.36%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report. |
During the six-month period, the Fund’s assets on average were invested 63% in equities (including equitized cash) and 37% in fixed-income securities, ending the period with approximately 64% invested in equities and 36% in fixed-income securities.
The equity portion of the Fund (excluding equitized cash) returned 17.16% for the period, slightly trailing the Russell 1000 Value Index (“the Index”) return of 17.77%. The Fund’s poor performance versus the Index was entirely due to stock selection as sector allocation added value relative to the Index.
The Fund’s holdings in the Consumer Discretionary, Information Technology, and Telecommunication Services sectors detracted the most value from relative performance. Companies in the Consumer Discretionary sector that had the most negative impact on the Fund’s underperformance were CBS (up 35.3%), Time Warner Cable (up 43.9%), and J.C. Penney (down 11.1%) for the period the Fund owned the securities. In the Information Technology sector, Intel (up 20.9%) and Hewlett Packard (up 9.8%) for the period the Fund owned the securities were the largest detractors from performance. AT&T (up 4.8% for the period the Fund owned the security) hurt relative returns in the Telecommunication Services sector.
During the six-month period, a significant underweighting in Energy, the second worst performing sector in the Index, and an overweighting in Industrials, the second best performing sector in the Index, added value to the Fund’s relative returns through sector allocation. Excess performance from the Fund’s allocation to
3
Performance Overview
American Beacon Balanced FundSM
April 30, 2010 (Unaudited)
the aforementioned sectors was somewhat offset by underperformance resulting from an underweighting in Consumer Discretionary, the best performing sector in the Index, and an overweighting in the Consumer Staples sector.
The fixed income portion of the Fund returned 2.95% for the six-month period, outperforming the Barclays Capital Aggregate Index return of 2.54%. The Fund’s fixed income excess performance was mostly due to a more than two times overweighting in the Corporates sector and the Fund’s underweight in U.S. Treasuries.
The sub-advisors continue to focus on the disciplined selection of attractive securities that should allow the Fund to benefit long-term.
Top Ten Holdings
% of | ||||
Net Assets | ||||
ConocoPhillips | 2.6 | % | ||
JPMorgan Chase & Co. | 2.1 | % | ||
Bank of America Corp. | 1.8 | % | ||
Wells Fargo & Co. | 1.7 | % | ||
International Business Machines Corp. | 1.7 | % | ||
Hewlett-Packard Co. | 1.4 | % | ||
Honeywell International, Inc. | 1.3 | % | ||
Raytheon Co. | 1.3 | % | ||
PNC Financial Services Group, Inc. | 1.3 | % | ||
Pfizer, Inc. | 1.2 | % |
Equity Sector Allocation
% of | ||||
Equities | ||||
Financials | 24.2 | % | ||
Industrials | 15.8 | % | ||
Energy | 12.4 | % | ||
Information Technology | 12.1 | % | ||
Health Care | 10.2 | % | ||
Consumer Discretionary | 7.9 | % | ||
Consumer Staples | 7.6 | % | ||
Utilities | 4.8 | % | ||
Telecommunication Services | 2.8 | % | ||
Materials | 2.2 | % |
Fixed-Income Sector Allocation
% of | ||||
Fixed Income | ||||
Corporate | 47.5 | % | ||
Mortgage-Backed | 18.8 | % | ||
U.S. Treasury | 15.7 | % | ||
Agency | 14.4 | % | ||
Asset-Backed | 2.8 | % | ||
Municipal/Other Governments | 0.8 | % |
4
Performance Overview
American Beacon Large Cap Growth FundSM
April 30, 2010 (Unaudited)
The Institutional Class of the Large Cap Growth Fund returned 14.28% for the six months ended April 30, 2010, compared to the Russell 1000® Growth Index (“Index”) return of 15.79% and the Lipper Large-Cap Growth Funds Index return of 15.31%.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/10 | Since Incep. | |||||||||||||||
6 Months* | 1 Year | 5 Years | (7/31/00) | |||||||||||||
Institutional Class(1,4) | 14.28 | % | 32.39 | % | 0.77 | % | -4.93 | % | ||||||||
Y Class (1,2,4) | 14.28 | % | 32.39 | % | 0.77 | % | -4.93 | % | ||||||||
AMR Class(1,4) | 14.50 | % | 32.83 | % | 1.09 | % | -4.72 | % | ||||||||
Russell 1000 Growth Index(3) | 15.79 | % | 38.16 | % | 4.05 | % | -3.52 | % | ||||||||
Lipper Large-Cap Growth Funds Index(3) | 15.31 | % | 37.06 | % | 3.48 | % | -3.93 | % |
* | Not annualized | |
1. | Performance shown is historical and may not be indicative of future returns. Please note that the recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. A portion of the fees charged to the Institutional Class of the Fund has been waived since 2004. Performance prior to waiving the fees was lower than the actual returns shown for periods since 2004. | |
2. | Fund performance for the six month, one-year, five-year and since inception periods represents the total returns achieved by the Institutional Class from 7/31/00 up to 3/1/10, the inception date of the Y Class, and the returns of the Y Class since its inception. Expenses of the Institutional Class are lower than those of the Y Class. Therefore, total returns shown may be lower than they would have been had the Y Class been in existence since 7/31/00. | |
3. | The Russell 1000 Growth Index is an unmanaged index of those stocks in the Russell 1000 Index with higher price-to-book ratios and higher forecasted growth values. Russell 1000 Growth Index and Russell 1000 Index are registered trademarks of Frank Russell Company. The Lipper Large-Cap Growth Funds Index tracks the results of the 30 largest mutual funds in the Lipper Large-Cap Growth Funds category. Lipper is an independent mutual fund research and ranking service. One cannot directly invest in an index. | |
4. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, and AMR Class shares was 0.95%, 1.05%, and 0.64%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report. |
The Fund underperformed the Index entirely through stock selection as sector allocation added value relative to the Index. From a stock selection standpoint, the Fund was hurt most by poor stock selection in the Financials and Industrials sectors. Companies, in the Financials sector, with the greatest negative impact to the Fund’s performance included Knight Capital Group (down 13.3%) and Western Union (down 6.8%) for the period the Fund owned the securities. In the Industrials sector, Fluor (up 7.8%) and H&R Block (down 7.0%) for the period the Fund owned the securities, detracted the most value relative to the Index.
The Fund’s six times underweighting in the Consumer Staples sector generated positive returns from a sector allocation perspective. An overweighting in Industrials and Consumer Discretionary, the two best performing sectors in the Index, as well as an absence from Utilities, the worst performing sector in the Index, also added relative value. A more than two times overweighting in the Energy sector produced negative returns, slightly offsetting the aforementioned good performance.
Looking forward, the Fund’s sub-advisors will continue to maintain a disciplined, long-term approach to equity investing in larger stocks with above-average growth potential.
Top Ten Holdings
% of | ||||
Net Assets | ||||
Apple Computer, Inc. | 3.1 | % | ||
Cognizant Technology Solutions Corp. | 2.5 | % | ||
Hewlett-Packard Co. | 2.4 | % | ||
Cisco Systems, Inc. | 2.2 | % | ||
priceline.com, Inc. | 2.0 | % | ||
Oracle Corp. | 1.8 | % | ||
Visa, Inc. | 1.8 | % | ||
Microsoft Corp. | 1.7 | % | ||
Goldman Sachs Group, Inc. | 1.7 | % | ||
Target Corp. | 1.5 | % |
Equity Sector Allocation
% of | ||||
Equities | ||||
Information Technology | 33.6 | % | ||
Consumer Discretionary | 19.0 | % | ||
Industrials | 16.9 | % | ||
Health Care | 10.9 | % | ||
Financials | 8.2 | % | ||
Energy | 6.9 | % | ||
Consumer Staples | 2.7 | % | ||
Materials | 1.8 | % |
5
Performance Overview
American Beacon Mid-Cap Value FundSM
American Beacon Mid-Cap Value FundSM
April 30, 2010 (Unaudited)
The Institutional Class of the Mid-Cap Value Fund returned 25.05% for the six months ended April 30, 2010. The Fund lagged the Russell Midcap® Value Index (“Index”) return of 26.54% but outperformed the Lipper Mid-Cap Value Funds Index return of 22.82%.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/10 | ||||||||||||||||
Since | ||||||||||||||||
Incep. | ||||||||||||||||
6 Months* | 1 Year | 5 Years | (6/30/04) | |||||||||||||
Institutional Class(1,3,7) | 25.05 | % | 57.77 | % | 5.26 | % | 6.13 | % | ||||||||
Y Class (1,4,7) | 25.05 | % | 57.77 | % | 5.26 | % | 6.13 | % | ||||||||
Investor Class (1,2,7) | 24.93 | % | 57.32 | % | 5.01 | % | 5.92 | % | ||||||||
Advisor Class (1,5,7) | 24.52 | % | 56.95 | % | 4.99 | % | 5.90 | % | ||||||||
AMR Class (1,7) | 25.01 | % | 57.87 | % | 5.40 | % | 6.25 | % | ||||||||
Russell Midcap® Value Index(6) | 26.54 | % | 54.39 | % | 5.18 | % | 6.68 | % | ||||||||
Lipper Mid-Cap Value Funds Index(6) | 22.82 | % | 49.95 | % | 5.22 | % | 5.47 | % |
* | Not annualized | |
1. | Performance shown is historical and may not be indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. A portion of the fees charged to the AMR Class of the Fund was waived through 2005. Performance prior to waiving fees was lower than the actual returns shown for periods through 2005. | |
2. | Fund performance for the since inception period represents the total returns achieved by the AMR Class from 6/30/04 up to 3/1/06, the inception date of the Investor Class, and the returns of the Investor Class since its inception. Expenses of the Investor Class are higher than those of the AMR Class. As a result, total returns shown may be higher than they would have been had the Investor Class been in existence since 6/30/04. A portion of the fees charged to the Investor Class of the Fund has been waived since 2006. Performance prior to waiving fees was lower than actual returns shown since 2006. | |
3. | Fund performance for the since inception period represents the total returns achieved by the AMR Class from 6/30/04 up to 11/30/05, the inception date of the Institutional Class, and the returns of the Institutional Class since its inception. Expenses of the Institutional Class are higher than those of the AMR Class. As a result, total returns shown may be higher than they would have been had the Institutional Class been in existence since 6/30/04. A portion of the fees charged to the Institutional Class of the Fund has been waived since 2007. Performance prior to waiving fees was lower than actual returns shown since 2007. | |
4. | Fund performance for the six month, one-year, five-year and since inception period represents the total returns achieved by the AMR Class from 6/30/04 up to 11/30/05, the inception date of the Institutional Class, and the returns of the Institutional Class from 12/1/05 to 3/1/10 its inception. Expenses of the Institutional and AMR Classes are lower than those of the Y Class. As a result, total returns shown may be higher than they would have been had the Y Class been in existence since 6/30/04. A portion of the fees charged to the Institutional Class of the Fund has been waived since 2007. Performance prior to waiving fees was lower than actual returns shown since 2007. | |
5. | Performance shown prior to the 6/29/07 inception of the Advisor Class is that of the AMR Class from 6/30/04 to 11/30/05, the Institutional Class from 11/30/05 to 3/1/06 and the Investor Class from 3/1/06 to 6/29/07. Because the AMR, Institutional and Investor Classes had lower expenses, their performance was better than the Advisor Class would have realized during the same period. A portion of the fees charged to the Advisor Class of the Fund has been waived since 2007. Performance prior to waiving fees was lower than the actual returns shown since 2007. | |
6. | The Russell Midcap Value Index is an unmanaged index of those stocks in the Russell Midcap Index with lower price-to-book ratios and lower forecasted growth values. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index. Russell Midcap Value Index, Russell Midcap Index and Russell 1000 Index are registered trademarks of Frank Russell Company. The Lipper Mid-Cap Value Funds Index tracks the results of the 30 largest mutual funds in the Lipper Mid-Cap Value Funds category. Lipper is an independent mutual fund research and ranking service. One cannot directly invest in an index. | |
7. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, and AMR Class shares was 1.15%, 1.25%, 1.36%, 1.60%, and 0.84%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report. |
The Fund underperformed the Index entirely through stock selection as sector allocation added value relative to the Index.
Holdings in the Information Technology, Consumer Discretionary, and Energy sectors detracted the most relative value from the Fund’s performance through stock selection. In the Information Technology sector, the Fund’s investments in Alcatel Lucent (down 13.3%), Motorola (down 17.5%), and Tech Data (down 0.2% for the period the Fund owned the security) had the largest negative impact on the Fund’s performance. In the Consumer Discretionary sector, GameStop (down 2.9%), Whirlpool (up 16.0%), and Limited Brands (up 25.6%) were the largest detractors for the period the Fund owned the securities. Murphy Oil (down 1.3%) and El Paso (up 22.9%), for the period the Fund owned the securities, were the Energy sector companies that hurt the Fund’s relative performance most.
6
Performance Overview
American Beacon Mid-Cap Value FundSM
April 30, 2010 (Unaudited)
A significant overweighting in Consumer Discretionary, the best performing sector in the Index, added relative value through sector allocation.
The sub-advisors’ philosophy of investing in undervalued companies that exhibit improving profitability and earnings growth potential should allow the Fund to benefit longer term.
Top Ten Holdings
% of | ||||
Net Assets | ||||
L-3 Communications Holdings, Inc. | 2.8 | % | ||
Willis Group Holdings plc | 2.4 | % | ||
Fifth Third Bancorp | 2.4 | % | ||
Stanley Black & Decker, Inc. | 2.3 | % | ||
PNC Financial Services Group, Inc. | 2.2 | % | ||
Tyco Electronics Ltd. | 1.6 | % | ||
Protective Life Corp. | 1.6 | % | ||
Eaton Corp. | 1.5 | % | ||
Capital One Financial Corp. | 1.5 | % | ||
Torchmark Corp. | 1.4 | % |
Equity Sector Allocation
% of | ||||
Equities | ||||
Financials | 28.3 | % | ||
Consumer Discretionary | 20.2 | % | ||
Industrials | 14.2 | % | ||
Information Technology | 11.1 | % | ||
Health Care | 10.8 | % | ||
Utilities | 7.9 | % | ||
Energy | 3.4 | % | ||
Consumer Staples | 3.2 | % | ||
Materials | 0.9 | % |
7
Fund Expenses — Actual
April 30, 2010 (Unaudited)
Fund Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees if applicable, and (2) ongoing costs, including management fees, administrative service fees, and other Fund expenses. The examples below are intended to help you understand the ongoing cost (in dollars) of investing in a particular Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from November 1, 2009 through April 30, 2010.
Actual Expenses
The following tables provide information about actual account values and actual expenses. You may use the information on this page, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the “Expenses Paid During Period” for the applicable Fund to estimate the expenses you paid on your account during this period. Shareholders of the Investor and Institutional Classes that invest in a Fund through an IRA may be subject to a custodial IRA fee of $12 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $12 higher.
Large Cap | ||||||||||||
Institutional Class | Balanced Fund | Growth Fund | Mid-Cap Value Fund | |||||||||
Beginning Account Value 11/1/09 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/10 | $ | 1,113.53 | $ | 1,142.75 | $ | 1,250.53 | ||||||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 3.09 | $ | 4.78 | $ | 5.41 | ||||||
Annualized Expense Ratio | 0.59 | % | 0.90 | % | 0.97 | % |
Large Cap | ||||||||||||
Y Class | Balanced Fund | Growth Fund | Mid-Cap Value Fund | |||||||||
Beginning Account Value 3/1/10** | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/10 | $ | 1,049.18 | $ | 1,048.06 | $ | 1,109.67 | ||||||
Expenses Paid During Period 3/1/10-4/30/10 ** | $ | 1.18 | $ | 1.78 | $ | 1.91 | ||||||
Annualized Expense Ratio | 0.70 | % | 1.06 | % | 1.10 | % |
Investor Class | Balanced Fund | Mid-Cap Value Fund | ||||||
Beginning Account Value 11/1/09 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 4/30/10 | $ | 1,111.71 | $ | 1,249.35 | ||||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 4.82 | $ | 6.80 | ||||
Annualized Expense Ratio | 0.92 | % | 1.22 | % |
Advisor Class | Balanced Fund | Mid-Cap Value Fund | ||||||
Beginning Account Value 11/1/09 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 4/30/10 | $ | 1,111.10 | $ | 1,245.17 | ||||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 5.71 | $ | 8.07 | ||||
Annualized Expense Ratio | 1.09 | % | 1.45 | % |
AMR Class | Balanced Fund | Large Cap Growth Fund | Mid-Cap Value Fund | |||||||||
Beginning Account Value 11/1/09 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/2010 | $ | 1,115.30 | $ | 1,144.99 | $ | 1,250.06 | ||||||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 1.73 | $ | 3.51 | $ | 4.30 | ||||||
Annualized Expense Ratio | 0.33 | % | 0.66 | % | 0.77 | % |
* | Expenses are equal to the Fund’s annualized expense ratio for the six-month period multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year ( 181 ) by days in the year ( 365 ) to reflect the half-year period. | |
** | Beginning account value for Y Class is the inception date of 3/1/10. Expenses are equal to the Fund’s annualized expense ratio for the period multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the period ( 61 ) by days in the year ( 365 ). |
8
Fund Expenses — Hypothetical
April 30, 2010 (Unaudited)
Hypothetical Example for Comparison Purposes
The following tables provide information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed 5% per year rate of return before expenses (not the Fund’s actual return). You may compare the ongoing costs of investing in a particular Fund with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Shareholders of the Investor and Institutional Classes that invest in a Fund through an IRA may be subject to a custodial IRA fee of $12 that is typically deducted each December. If your account was subject to a custodial IRA fee during the pe riod, your costs would have been $12 higher.
You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs charged by a Fund, such as redemption fees as applicable. Similarly, the expense examples for other funds do not reflect any transaction costs charged by those funds, such as sales charges (loads), redemption fees or exchange fees. Therefore, the following tables are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If you were subject to any transaction costs during the period, your costs would have been higher.
Large Cap | ||||||||||||
Institutional Class | Balanced Fund | Growth Fund | Mid-Cap Value Fund | |||||||||
Beginning Account Value 11/1/09 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/10 | $ | 1,021.87 | $ | 1,020.33 | $ | 1,019.98 | ||||||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 2.96 | $ | 4.51 | $ | 4.86 | ||||||
Annualized Expense Ratio | 0.59 | % | 0.90 | % | 0.97 | % |
Large Cap | ||||||||||||
Y Class | Balanced Fund | Growth Fund | Mid-Cap Value Fund | |||||||||
Beginning Account Value 3/1/10** | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/10 | $ | 1,007.18 | $ | 1,006.58 | $ | 1,006.51 | ||||||
Expenses Paid During Period 3/1/10-4/30/10 ** | $ | 1.18 | $ | 1.79 | $ | 1.85 | ||||||
Annualized Expense Ratio | 0.70 | % | 1.06 | % | 1.10 | % |
Investor Class | Balanced Fund | Mid-Cap Value Fund | ||||||
Beginning Account Value 11/1/09 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 4/30/10 | $ | 1,020.23 | $ | 1,018.74 | ||||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 4.61 | $ | 6.11 | ||||
Annualized Expense Ratio | 0.92 | % | 1.22 | % |
Advisor Class | Balanced Fund | Mid-Cap Value Fund | ||||||
Beginning Account Value 11/1/09 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 4/30/10 | $ | 1,019.39 | $ | 1,017.60 | ||||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 5.46 | $ | 7.25 | ||||
Annualized Expense Ratio | 1.09 | % | 1.45 | % |
Large Cap | ||||||||||||
AMR Class | Balanced Fund | Growth Fund | Mid-Cap Value Fund | |||||||||
Beginning Account Value 11/1/09 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/10 | $ | 1,023.16 | $ | 1,021.52 | $ | 1,020.98 | ||||||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 1.66 | $ | 3.31 | $ | 3.86 | ||||||
Annualized Expense Ratio | 0.33 | % | 0.66 | % | 0.77 | % |
* | Expenses are equal to the Fund’s annualized expense ratios for the six-month period multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year ( 181 ) by days in the year ( 365 ) to reflect the half-year period. | |
** | Beginning account value for Y Class is the inception date of 3/1/10. Expenses are equal to the Fund’s annualized expense ratio for the period multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the period ( 61 ) by days in the year ( 365 ). |
9
American Beacon Balanced Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
COMMON STOCKS - 60.54% | ||||||||
CONSUMER DISCRETIONARY - 4.76% | ||||||||
Hotels, Restaurants & Leisure - 1.26% | ||||||||
Carnival Corp. | 100,800 | $ | 4,203 | |||||
McDonald’s Corp. | 55,900 | 3,946 | ||||||
Wyndham Worldwide Corp. | 120,000 | 3,217 | ||||||
11,366 | ||||||||
Media - 1.29% | ||||||||
CBS Corp. | 97,000 | 1,572 | ||||||
Comcast Corp. | 138,800 | 2,617 | ||||||
Interpublic Group of Cos., Inc. ^ | 186,400 | 1,661 | ||||||
Time Warner Cable, Inc. | 42,100 | 2,368 | ||||||
Walt Disney Co. Ltd. | 92,400 | 3,404 | ||||||
11,622 | ||||||||
Multiline Retail - 1.30% | ||||||||
J.C. Penney Company, Inc. | 100,100 | 2,920 | ||||||
Target Corp. | 67,700 | 3,850 | ||||||
Wal-Mart Stores, Inc. | 92,800 | 4,979 | ||||||
11,749 | ||||||||
Specialty Retail - 0.91% | ||||||||
Gap, Inc. | 60,300 | 1,491 | ||||||
The Home Depot, Inc. | 130,050 | 4,584 | ||||||
Limited Brands, Inc. | 78,000 | 2,091 | ||||||
8,166 | ||||||||
Total Consumer Discretionary | 42,903 | |||||||
CONSUMER STAPLES - 4.61% | ||||||||
Beverages - 1.02% | ||||||||
Coca-Cola Co. | 34,400 | 1,839 | ||||||
Diageo plc, ADR | 68,200 | 4,647 | ||||||
PepsiCo, Inc. | 41,200 | 2,687 | ||||||
9,173 | ||||||||
Food & Drug Retailing - 0.87% | ||||||||
CVS Caremark Corp. | 115,700 | 4,273 | ||||||
Safeway, Inc. | 99,500 | 2,348 | ||||||
Sysco Corp. | 38,600 | 1,217 | ||||||
7,838 | ||||||||
Food Products - 0.16% | ||||||||
Kraft Foods, Inc. | 49,600 | 1,468 | ||||||
Household Products - 0.26% | ||||||||
The Procter & Gamble Co. | 38,000 | 2,362 | ||||||
Tobacco - 2.30% | ||||||||
Altria Group, Inc. | 103,000 | 2,183 | ||||||
Imperial Tobacco Group plc, ADR | 121,900 | 6,947 | ||||||
Lorillard, Inc. | 20,600 | 1,614 | ||||||
Philip Morris International, Inc. | 204,500 | 10,037 | ||||||
20,781 | ||||||||
Total Consumer Staples | 41,622 | |||||||
ENERGY - 7.52% | ||||||||
Energy Equipment & Services - 0.19% | ||||||||
Transocean Ltd. ^ | 23,800 | 1,724 | ||||||
Oil & Gas - 7.33% | ||||||||
BP plc, ADR | 191,700 | 9,997 | ||||||
Chevron Corp. | 94,028 | 7,658 | ||||||
ConocoPhillips | 394,976 | 23,379 | ||||||
Devon Energy Corp. | 21,000 | 1,414 | ||||||
Duke Energy Corp. | 70,700 | 1,186 | ||||||
Exxon Mobil Corp. | 119,500 | 8,108 | ||||||
Marathon Oil Corp. | 26,400 | 849 | ||||||
Occidental Petroleum Corp. | 63,200 | 5,603 | ||||||
Royal Dutch Shell plc, ADR | 130,400 | 7,913 | ||||||
66,107 | ||||||||
Total Energy | 67,831 | |||||||
FINANCIALS - 14.63% | ||||||||
Banks - 9.13% | ||||||||
Bank of America Corp. | 924,280 | 16,480 | ||||||
Bank of New York Mellon Corp. | 70,900 | 2,207 | ||||||
Citigroup, Inc. ^ | 1,366,003 | 5,969 | ||||||
Goldman Sachs Group, Inc. | 16,700 | 2,425 | ||||||
JPMorgan Chase & Co. | 444,734 | 18,937 | ||||||
KeyCorp | 158,757 | 1,432 | ||||||
PNC Financial Services Group, Inc. | 174,958 | 11,759 | ||||||
State Street Corp. | 101,300 | 4,407 | ||||||
SunTrust Banks, Inc. | 38,900 | 1,152 | ||||||
U.S. Bancorp | 93,060 | 2,491 | ||||||
Wells Fargo & Co. | 456,398 | 15,111 | ||||||
82,370 | ||||||||
Diversified Financials - 1.97% | ||||||||
American Express Co. | 153,500 | 7,079 | ||||||
Capital One Financial Corp. | 112,300 | 4,875 | ||||||
Morgan Stanley Dean Witter & Co. | 125,600 | 3,796 | ||||||
SLM Corp. ^ | 165,200 | 2,022 | ||||||
17,772 | ||||||||
Insurance - 3.53% | ||||||||
ACE Ltd. | 77,500 | 4,122 | ||||||
Allstate Corp. | 87,800 | 2,869 |
See accompanying notes
10
American Beacon Balanced Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
Genworth Financial, Inc. ^ | 186,500 | $ | 3,081 | |||||
Hartford Financial Services Group, Inc. | 62,700 | 1,791 | ||||||
Lincoln National Corp. | 80,600 | 2,466 | ||||||
MetLife, Inc. | 152,288 | 6,941 | ||||||
Prudential Financial, Inc. | 29,400 | 1,869 | ||||||
Travelers Cos., Inc. | 91,100 | 4,622 | ||||||
XL Capital Ltd. | 228,100 | 4,060 | ||||||
31,821 | ||||||||
Total Financials | 131,963 | |||||||
HEALTH CARE - 6.17% | ||||||||
Health Care Equipment & Supplies - 0.54% | ||||||||
Baxter International, Inc. | 94,500 | 4,462 | ||||||
Zimmer Holdings, Inc. ^ | 7,600 | 463 | ||||||
4,925 | ||||||||
Health Care Providers & Services - 1.19% | ||||||||
Cardinal Health, Inc. | 69,100 | 2,397 | ||||||
CIGNA Corp. | 142,900 | 4,581 | ||||||
UnitedHealth Group, Inc. | 32,700 | 991 | ||||||
WellPoint, Inc. ^ | 50,900 | 2,739 | ||||||
10,708 | ||||||||
Pharmaceuticals - 4.44% | ||||||||
Amgen, Inc. ^ | 30,400 | 1,744 | ||||||
Bristol-Myers Squibb Co. | 384,800 | 9,732 | ||||||
Eli Lilly & Co. | 175,000 | 6,120 | ||||||
Johnson & Johnson | 89,900 | 5,780 | ||||||
Merck & Co., Inc. | 175,676 | 6,156 | ||||||
Pfizer, Inc. | 626,454 | 10,474 | ||||||
40,006 | ||||||||
Total Health Care | 55,639 | |||||||
INDUSTRIALS - 9.58% | ||||||||
Aerospace & Defense - 3.15% | ||||||||
Boeing Co. | 95,000 | 6,881 | ||||||
Lockheed Martin Corp. | 51,200 | 4,346 | ||||||
Northrop Grumman Corp. | 46,700 | 3,168 | ||||||
Raytheon Co. | 200,700 | 11,701 | ||||||
United Technologies Corp. | 30,800 | 2,308 | ||||||
28,404 | ||||||||
Air Freight & Couriers - 0.26% | ||||||||
FedEx Corp. | 25,700 | 2,313 | ||||||
Construction & Engineering - 0.20% | ||||||||
Shaw Group, Inc. ^ | 46,600 | 1,784 | ||||||
Industrial Conglomerates - 3.55% | ||||||||
3M Co. | 63,300 | 5,613 | ||||||
General Electric Co. | 502,000 | 9,468 | ||||||
Honeywell International, Inc. | 249,400 | 11,839 | ||||||
Textron, Inc. | 100,000 | 2,284 | ||||||
Tyco International Ltd. | 73,325 | 2,844 | ||||||
32,048 | ||||||||
Machinery - 2.42% | ||||||||
Caterpillar, Inc. | 40,000 | 2,724 | ||||||
Cummins, Inc. | 34,700 | 2,506 | ||||||
Eaton Corp. | 34,400 | 2,654 | ||||||
Illinois Tool Works, Inc. | 54,100 | 2,765 | ||||||
ITT Industries, Inc. | 77,000 | 4,279 | ||||||
PACCAR, Inc. | 147,900 | 6,880 | ||||||
21,808 | ||||||||
Total Industrials | 86,357 | |||||||
INFORMATION TECHNOLOGY - 7.33% | ||||||||
Computers & Peripherals - 3.36% | ||||||||
Dell, Inc. ^ | 137,000 | 2,217 | ||||||
Hewlett-Packard Co. | 251,100 | 13,050 | ||||||
International Business Machines Corp. | 116,800 | 15,067 | ||||||
30,334 | ||||||||
Diversified Telecommunication Services - 0.49% | ||||||||
Nokia Corp., ADR ^ | 364,800 | 4,436 | ||||||
Electronic Equipment & Instruments - 1.52% | ||||||||
Intel Corp. | 405,300 | 9,253 | ||||||
Tyco Electronics Ltd. | 138,925 | 4,462 | ||||||
13,715 | ||||||||
IT Consulting & Services - 0.10% | ||||||||
Accenture plc | 20,400 | 890 | ||||||
Software - 1.86% | ||||||||
CA, Inc. | 250,574 | 5,715 | ||||||
Microsoft Corp. | 305,100 | 9,318 | ||||||
Oracle Corp. | 66,100 | 1,708 | ||||||
16,741 | ||||||||
Total Information Technology | 66,116 | |||||||
MATERIALS - 1.31% | ||||||||
Chemicals - 1.31% | ||||||||
Air Products & Chemicals, Inc. | 35,800 | 2,749 | ||||||
Dow Chemical Co. | 68,300 | 2,106 | ||||||
E. I. du Pont de Nemours & Co. | 107,000 | 4,263 |
See accompanying notes
11
American Beacon Balanced Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
PPG Industries, Inc. | 38,500 | $ | 2,709 | |||||
Total Materials | 11,827 | |||||||
TELECOMMUNICATION SERVICES - 1.71% | ||||||||
Diversified Telecommunication - 0.88% | ||||||||
Vodafone Group plc, ADR | 355,800 | 7,899 | ||||||
Diversified Telecommunication Services - 0.83% | ||||||||
AT&T, Inc. | 229,377 | 5,977 | ||||||
Verizon Communications, Inc. | 52,808 | 1,526 | ||||||
7,503 | ||||||||
Total Telecommunication Services | 15,402 | |||||||
UTILITIES - 2.92% | ||||||||
Electric Utilities - 2.31% | ||||||||
CenterPoint Energy, Inc. | 177,100 | 2,543 | ||||||
Dominion Resources, Inc. | 107,400 | 4,489 | ||||||
Edison International | 65,900 | 2,265 | ||||||
Entergy Corp. | 47,400 | 3,853 | ||||||
Exelon Corp. | 122,100 | 5,323 | ||||||
FPL Group, Inc. | 44,400 | 2,311 | ||||||
20,784 | ||||||||
Gas Utilities - 0.61% | ||||||||
Spectra Energy Corp. | 236,100 | 5,510 | ||||||
Total Utilities | 26,294 | |||||||
Total Common Stocks | 545,954 | |||||||
Par | ||||||||
Amount | ||||||||
AGENCIES - 0.09% | ||||||||
Agency - 0.09% | ||||||||
EDF SA, 4.60%, Due 1/27/2020 ‡ | $ | 320 | 320 | |||||
Petrobras International Finance Co., 6.875%, Due 1/20/2040 | 125 | 130 | ||||||
Petroleos Mexicanos, 6.00%, Due 3/5/2020 ‡ | 325 | 334 | ||||||
Total Agencies | 784 | |||||||
CORPORATE OBLIGATIONS - 17.22% | ||||||||
Finance - 5.38% | ||||||||
Aegon Funding Corp., 5.75%, Due 12/15/2020 | 350 | 349 | ||||||
American Express Co., 8.15%, Due 3/19/2038 | 325 | 428 | ||||||
American Express Credit Corp., 5.875%, Due 5/2/2013 | 710 | 776 | ||||||
Ameriprise Financial, Inc., 5.35%, Due 11/15/2010 | 775 | 793 | ||||||
ANZ National Int’l Ltd., 2.375%, Due 12/21/2012 ‡ | 350 | 353 | ||||||
Bank of America Corp., | ||||||||
6.50%, Due 8/1/2016 | 2,090 | 2,254 | ||||||
7.80%, Due 9/15/2016 | 700 | 782 | ||||||
6.00%, Due 9/1/2017 | 400 | 415 | ||||||
Bank of New York Mellon Corp., 4.95%, Due 11/1/2012 | 355 | 385 | ||||||
Bank One Corp., 4.90%, Due 4/30/2015 | 250 | 256 | ||||||
Barclays Bank plc, | ||||||||
3.90%, Due 4/7/2015 | 330 | 334 | ||||||
6.75%, Due 5/22/2019 | 350 | 393 | ||||||
Bear Stearns Cos., Inc., | ||||||||
6.40%, Due 10/2/2017 | 555 | 614 | ||||||
7.25%, Due 2/1/2018 | 340 | 392 | ||||||
Berkshire Hathaway Finance Corp., 5.75%, Due 1/15/2040 | 360 | 366 | ||||||
Berkshire Hathaway, Inc., 1.40%, Due 2/10/2012 | 2,110 | 2,125 | ||||||
BNP Paribas, 0.695%, Due 4/8/2013 # | 800 | 800 | ||||||
Citigroup, Inc., | ||||||||
6.375%, Due 8/12/2014 | 1,170 | 1,262 | ||||||
0.529%, Due 11/5/2014 # | 320 | 297 | ||||||
6.01%, Due 1/15/2015 | 540 | 575 | ||||||
6.125%, Due 11/21/2017 | 760 | 790 | ||||||
8.50%, Due 5/22/2019 | 650 | 767 | ||||||
CME Group, Inc., | ||||||||
5.40%, Due 8/1/2013 | 260 | 286 | ||||||
5.75%, Due 2/15/2014 | 565 | 625 | ||||||
CNA Financial Corp., 7.35%, Due 11/15/2019 | 245 | 262 | ||||||
Countrywide Financial Corp., 5.80%, Due 6/7/2012 | 235 | 250 | ||||||
Credit Suisse N.Y., | ||||||||
3.45%, Due 7/2/2012 | 700 | 726 | ||||||
5.30%, Due 8/13/2019 | 325 | 340 | ||||||
Deutsche Bank AG, 3.875%, Due 8/18/2014 | 325 | 336 | ||||||
Fifth Third Bancorp, 8.25%, Due 3/1/2038 | 1,500 | 1,655 | ||||||
General Electric Capital Corp., | ||||||||
5.25%, Due 10/19/2012 | 285 | 307 | ||||||
0.495%, Due 1/8/2016 # | 1,125 | 1,031 | ||||||
5.625%, Due 5/1/2018 | 765 | 811 | ||||||
6.00%, Due 8/7/2019 | 350 | 378 |
See accompanying notes
12
American Beacon Balanced Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
5.50%, Due 1/8/2020 | $ | 250 | $ | 260 | ||||
5.875%, Due 1/14/2038 | 625 | 618 | ||||||
Goldman Sachs Group, Inc., | ||||||||
5.125%, Due 1/15/2015 | 285 | 294 | ||||||
5.35%, Due 1/15/2016 | 725 | 739 | ||||||
6.25%, Due 9/1/2017 | 650 | 680 | ||||||
5.95%, Due 1/18/2018 | 280 | 287 | ||||||
6.75%, Due 10/1/2037 | 1,402 | 1,359 | ||||||
Hartford Financial Services Group, Inc., 7.90%, Due 6/15/2010 | 305 | 308 | ||||||
HSBC Finance Corp., 5.25%, Due 1/14/2011 | 1,400 | 1,437 | ||||||
ING Bank, NV, 5.125%, Due 5/1/2015 ‡ | 450 | 471 | ||||||
John Hancock Global Funding II, 7.90%, Due 7/2/2010 ‡ | 25 | 25 | ||||||
JP Morgan Chase & Co., | ||||||||
3.70%, Due 1/20/2015 | 1,705 | 1,740 | ||||||
6.00%, Due 1/15/2018 | 500 | 539 | ||||||
JP Morgan Chase Bank, NA, 0.587%, Due 6/13/2016 # | 415 | 390 | ||||||
Liberty Mutual Insurance Co., 7.875%, Due 10/15/2026 ‡ | 1,500 | 1,607 | ||||||
Lincoln National Corp., 4.75%, Due 2/15/2014 | 245 | 252 | ||||||
Lloyds TSB Bank plc, 4.375%, Due 1/12/2015 ‡ | 325 | 323 | ||||||
MassMutual Global Funding II, 0.412%, Due 12/6/2013 ‡ # | 400 | 388 | ||||||
Mellon Funding Corp., 0.40%, Due 5/15/2014 # | 250 | 247 | ||||||
Merrill Lynch & Co., Inc., | ||||||||
6.40%, Due 8/28/2017 | 1,000 | 1,050 | ||||||
6.50%, Due 7/15/2018 | 260 | 272 | ||||||
6.11%, Due 1/29/2037 | 365 | 338 | ||||||
MetLife, Inc., | ||||||||
5.375%, Due 12/15/2012 | 535 | 579 | ||||||
6.375%, Due 6/15/2034 | 350 | 373 | ||||||
Metropolitan Life Global Funding I, 0.507%, Due 3/15/2012 ‡ # | 320 | 316 | ||||||
Monumental Global Funding III, 0.503%, Due 1/15/2014 ‡ # | 325 | 310 | ||||||
Morgan Stanley, | ||||||||
0.783%, Due 10/15/2015 # | 320 | 297 | ||||||
7.30%, Due 5/13/2019 | 350 | 384 | ||||||
5.625%, Due 9/23/2019 | 350 | 345 | ||||||
Nasdaq OMX Group, | ||||||||
4.00%, Due 1/15/2015 | 185 | 187 | ||||||
5.55%, Due 1/15/2020 | 185 | 188 | ||||||
Nordea Bank AB, 2.50%, Due 11/13/2012 ‡ | 350 | 354 | ||||||
PNC Funding Corp., 4.25%, Due 9/21/2015 | 460 | 476 | ||||||
Pricoa Global Funding I, 5.40%, Due 10/18/2012 ‡ | 175 | 189 | ||||||
ProLogis, 5.625%, Due 11/15/2016 | 550 | 544 | ||||||
Prudential Financial, Inc., | ||||||||
4.50%, Due 7/15/2013 | 550 | 576 | ||||||
5.10%, Due 9/20/2014 | 550 | 589 | ||||||
Rabobank Nederland NV, 4.20%, Due 5/13/2014 ‡ | 200 | 210 | ||||||
Simon Property Group LP, 10.35%, Due 4/1/2019 | 325 | 421 | ||||||
State Street Corp., 4.30%, Due 5/30/2014 | 290 | 307 | ||||||
UBS AG, 5.875%, Due 12/20/2017 | 325 | 344 | ||||||
UnitedHealth Group, Inc., | ||||||||
5.25%, Due 3/15/2011 | 765 | 792 | ||||||
6.625%, Due 11/15/2037 | 2,000 | 2,131 | ||||||
Wachovia Corp., | ||||||||
0.673%, Due 10/15/2016 # | 650 | 597 | ||||||
5.75%, Due 2/1/2018 | 775 | 834 | ||||||
Wells Fargo & Co., 5.625%, Due 12/11/2017 | 250 | 269 | ||||||
Westpac Banking Corp., 2.25%, Due 11/19/2012 | 430 | 435 | ||||||
Willis North America, Inc., 6.20%, Due 3/28/2017 | 360 | 369 | ||||||
48,553 | ||||||||
Industrials - 10.38% | ||||||||
Alltel Corp., 7.00%, Due 7/1/2012 | 300 | 334 | ||||||
Altria Group, Inc., 9.70%, Due 11/10/2018 | 365 | 459 | ||||||
America Movil, S.A.B. de C.V., 6.375%, Due 3/1/2035 | 350 | 360 | ||||||
American Honda Finance Corp., 4.625%, Due 4/2/2013 ‡ | 425 | 452 | ||||||
Amgen, Inc., 6.90%, Due 6/1/2038 | 1,480 | 1,741 | ||||||
Anheuser-Busch InBev Worldwide, Inc., | ||||||||
3.00%, Due 10/15/2012 | 470 | 483 | ||||||
5.00%, Due 4/15/2020 ‡ | 330 | 335 | ||||||
8.00%, Due 11/15/2039 ‡ | 125 | 162 |
See accompanying notes
13
American Beacon Balanced Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
AstraZeneca plc, 6.45%, Due 9/15/2037 | $ | 1,880 | $ | 2,155 | ||||
AT&T Wireless Services, Inc., 8.75%, Due 3/1/2031 | 330 | 435 | ||||||
AT&T, Inc., | ||||||||
5.10%, Due 9/15/2014 | 860 | 939 | ||||||
5.625%, Due 6/15/2016 | 400 | 444 | ||||||
5.50%, Due 2/1/2018 | 300 | 323 | ||||||
6.80%, Due 5/15/2036 | 150 | 164 | ||||||
6.40%, Due 5/15/2038 | 1,840 | 1,929 | ||||||
BAE Systems Holdings, Inc., 4.75%, Due 8/15/2010 ‡ | 650 | 657 | ||||||
Baxter International, Inc., 1.80%, Due 3/15/2013 | 230 | 230 | ||||||
Best Buy Co., Inc., 6.75%, Due 7/15/2013 | 415 | 464 | ||||||
Biogen Idec, Inc., 6.875%, Due 3/1/2018 | 1,500 | 1,671 | ||||||
Boeing Co., 1.875%, Due 11/20/2012 | 350 | 354 | ||||||
BP Capital Markets plc, | ||||||||
3.125%, Due 3/10/2012 | 415 | 430 | ||||||
3.875%, Due 3/10/2015 | 200 | 209 | ||||||
Bristol-Myers Squibb Co., 5.45%, Due 5/1/2018 | 250 | 274 | ||||||
Burlington Northern Santa Fe LLC, | ||||||||
5.75%, Due 3/15/2018 | 425 | 463 | ||||||
7.95%, Due 8/15/2030 | 205 | 255 | ||||||
CA, Inc., 5.375%, Due 12/1/2019 | 305 | 318 | ||||||
Cameron International Corp., 6.375%, Due 7/15/2018 | 215 | 229 | ||||||
Canadian National Railway Co., | ||||||||
5.55%, Due 5/15/2018 | 350 | 382 | ||||||
5.55%, Due 3/1/2019 | 175 | 191 | ||||||
Canadian Natural Resources Ltd., | ||||||||
6.70%, Due 7/15/2011 | 410 | 436 | ||||||
6.25%, Due 3/15/2038 | 365 | 384 | ||||||
Caterpillar Financial Services Corp., | ||||||||
4.85%, Due 12/7/2012 | 545 | 588 | ||||||
1.90%, Due 12/17/2012 | 300 | 303 | ||||||
Cisco Systems, Inc., 5.90%, Due 2/15/2039 | 1,420 | 1,489 | ||||||
Coca-Cola Enterprises, Inc., 7.375%, Due 3/3/2014 | 175 | 206 | ||||||
Comcast Cable Communications Holdings, Inc., 8.375%, Due 3/15/2013 | 128 | 149 | ||||||
Comcast Corp., | ||||||||
6.30%, Due 11/15/2017 | 480 | 532 | ||||||
5.875%, Due 2/15/2018 | 305 | 329 | ||||||
6.45%, Due 3/15/2037 | 2,630 | 2,755 | ||||||
6.55%, Due 7/1/2039 | 350 | 370 | ||||||
Computer Sciences Corp., 5.50%, Due 3/15/2013 | 310 | 335 | ||||||
ConocoPhillips, | ||||||||
4.60%, Due 1/15/2015 | 900 | 973 | ||||||
5.20%, Due 5/15/2018 | 425 | 458 | ||||||
5.75%, Due 2/1/2019 | 310 | 346 | ||||||
Con-way, Inc., 8.875%, Due 5/1/2010 | 1,850 | 1,850 | ||||||
Costco Wholesale Corp., 5.30%, Due 3/15/2012 | 825 | 886 | ||||||
Covidien International Finance SA, | ||||||||
5.15%, Due 10/15/2010 | 650 | 663 | ||||||
5.45%, Due 10/15/2012 | 360 | 393 | ||||||
6.55%, Due 10/15/2037 | 1,500 | 1,727 | ||||||
CRH America, Inc., 6.00%, Due 9/30/2016 | 835 | 914 | ||||||
Daimler Finance NA LLC, | ||||||||
7.75%, Due 1/18/2011 | 1,000 | 1,047 | ||||||
5.875%, Due 3/15/2011 | 450 | 467 | ||||||
5.75%, Due 9/8/2011 | 550 | 580 | ||||||
Dell, Inc., | ||||||||
3.375%, Due 6/15/2012 | 290 | 302 | ||||||
5.875%, Due 6/15/2019 | 90 | 100 | ||||||
Deutsche Telekom AG, 8.50%, Due 6/15/2010 | 525 | 529 | ||||||
DIRECTV Holdings LLC, | ||||||||
3.55%, Due 3/15/2015 ‡ | 530 | 528 | ||||||
6.35%, Due 3/15/2040 ‡ | 160 | 165 | ||||||
E. I. du Pont de Nemours & Co., 5.875%, Due 1/15/2014 | 560 | 628 | ||||||
Eaton Corp., 5.60%, Due 5/15/2018 | 340 | 366 | ||||||
EI Du Pont de Nemours & Co., 3.25%, Due 1/15/2015 | 635 | 648 | ||||||
EOG Resources Canada, Inc., 4.75%, Due 3/15/2014 ‡ | 350 | 370 | ||||||
Equity Residential, 5.125%, Due 3/15/2016 | 470 | 489 | ||||||
Express Scripts, Inc., 6.25%, Due 6/15/2014 | 570 | 639 | ||||||
FedEx Corp., 8.00%, Due 1/15/2019 | 900 | 1,124 | ||||||
France Telecom S.A., 4.375%, Due 7/8/2014 | 465 | 497 |
See accompanying notes
14
American Beacon Balanced Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
GlaxoSmithKline Capital, Inc., | ||||||||
5.65%, Due 5/15/2018 | $ | 250 | $ | 277 | ||||
6.375%, Due 5/15/2038 | 1,020 | 1,155 | ||||||
Hewlett-Packard Co., | ||||||||
4.25%, Due 2/24/2012 | 585 | 618 | ||||||
4.50%, Due 3/1/2013 | 425 | 458 | ||||||
6.125%, Due 3/1/2014 | 460 | 523 | ||||||
Honeywell International, Inc., 4.25%, Due 3/1/2013 | 1,080 | 1,155 | ||||||
Hospira, Inc., 6.05%, Due 3/30/2017 | 360 | 395 | ||||||
International Business Machines Corp., | ||||||||
4.75%, Due 11/29/2012 | 480 | 520 | ||||||
7.625%, Due 10/15/2018 | 770 | 965 | ||||||
ITT Corp., 4.90%, Due 5/1/2014 | 845 | 907 | ||||||
John Deere Capital Corp., 4.90%, Due 9/9/2013 | 670 | 732 | ||||||
Johnson Controls, Inc., 5.00%, Due 3/30/2020 | 505 | 515 | ||||||
Kellogg Co., 4.25%, Due 3/6/2013 | 500 | 532 | ||||||
Kerr-McGee Corp., 6.95%, Due 7/1/2024 | 380 | 429 | ||||||
Koninklijke Philips Electronics NV, 5.75%, Due 3/11/2018 | 335 | 368 | ||||||
Kraft Foods, Inc., | ||||||||
7.00%, Due 8/11/2037 | 1,580 | 1,800 | ||||||
6.50%, Due 2/9/2040 | 245 | 264 | ||||||
L-3 Communications Corp., 5.20%, Due 10/15/2019 ‡ | 190 | 195 | ||||||
Lorillard Tobacco Co., 8.125%, Due 6/23/2019 | 310 | 350 | ||||||
Lowe’s Companies, Inc., | ||||||||
5.50%, Due 10/15/2035 | 210 | 208 | ||||||
6.65%, Due 9/15/2037 | 170 | 195 | ||||||
Marathon Oil Corp., 6.00%, Due 10/1/2017 | 415 | 454 | ||||||
Mead Johnson Nutrition Co., 4.90%, Due 11/1/2019 ‡ | 285 | 288 | ||||||
Medtronic, Inc., 3.00%, Due 3/15/2015 | 1,065 | 1,076 | ||||||
Nationwide Building Society, 5.50%, Due 7/18/2012 ‡ | 500 | 537 | ||||||
Norfolk Southern Corp., 5.75%, Due 4/1/2018 | 425 | 464 | ||||||
Northrop Grumman Corp., 5.05%, Due 8/1/2019 | 150 | 157 | ||||||
Novartis Capital Corp., | ||||||||
1.90%, Due 4/24/2013 | 695 | 697 | ||||||
4.125%, Due 2/10/2014 | 560 | 597 | ||||||
Novartis Securities Investment Ltd., 5.125%, Due 2/10/2019 | 1,164 | 1,251 | ||||||
Oracle Corp., 6.50%, Due 4/15/2038 | 1,055 | 1,206 | ||||||
Pfizer, Inc., 4.45%, Due 3/15/2012 | 770 | 815 | ||||||
Quest Diagnostics, Inc., 4.75%, Due 1/30/2020 | 660 | 658 | ||||||
Raytheon Co., | ||||||||
5.375%, Due 4/1/2013 | 550 | 603 | ||||||
4.40%, Due 2/15/2020 | 455 | 461 | ||||||
Rogers Communications, Inc., 6.80%, Due 8/15/2018 | 350 | 404 | ||||||
Safeway, Inc., 6.25%, Due 3/15/2014 | 535 | 600 | ||||||
Shell International Finance BV, 6.375%, Due 12/15/2038 | 1,760 | 1,995 | ||||||
Simon Property Group LP, 5.75%, Due 12/1/2015 | 460 | 497 | ||||||
Telecom Italia Capital SA, 4.95%, Due 9/30/2014 | 475 | 489 | ||||||
Telefonica Emisiones SAU, | ||||||||
5.984%, Due 6/20/2011 | 380 | 400 | ||||||
4.949%, Due 1/15/2015 | 515 | 546 | ||||||
6.421%, Due 6/20/2016 | 350 | 391 | ||||||
Thermo Fisher Scientific, Inc., 3.20%, Due 5/1/2015 | 240 | 241 | ||||||
Thomson Reuters Corp., 4.70%, Due 10/15/2019 | 350 | 359 | ||||||
Time Warner Cable, Inc., | ||||||||
8.25%, Due 2/14/2014 | 300 | 354 | ||||||
5.85%, Due 5/1/2017 | 350 | 379 | ||||||
6.75%, Due 7/1/2018 | 545 | 618 | ||||||
7.30%, Due 7/1/2038 | 1,920 | 2,214 | ||||||
Time Warner, Inc., 4.875%, Due 3/15/2020 | 160 | 159 | ||||||
Transocean, Inc., 6.80%, Due 3/15/2038 | 3,170 | 3,502 | ||||||
Tyco Electronics Group SA, | ||||||||
6.55%, Due 10/1/2017 | 2,057 | 2,305 | ||||||
7.125%, Due 10/1/2037 | 1,750 | 1,967 | ||||||
Tyco International Finance SA, | ||||||||
4.125%, Due 10/15/2014 | 175 | 183 | ||||||
8.50%, Due 1/15/2019 | 385 | 488 | ||||||
Unilever Capital Corp., 7.125%, Due 11/1/2010 | 2,000 | 2,066 |
See accompanying notes
15
American Beacon Balanced Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Union Pacific Corp., 7.875%, Due 1/15/2019 | $ | 350 | $ | 428 | ||||
United Technologies Corp., | ||||||||
6.125%, Due 2/1/2019 | 190 | 218 | ||||||
6.125%, Due 7/15/2038 | 210 | 235 | ||||||
Valero Energy Corp., | ||||||||
9.375%, Due 3/15/2019 | 155 | 190 | ||||||
6.625%, Due 6/15/2037 | 185 | 186 | ||||||
Verizon Communications, Inc., | ||||||||
5.50%, Due 4/1/2017 | 350 | 378 | ||||||
6.90%, Due 4/15/2038 | 275 | 312 | ||||||
Verizon Wireless Capital, LLC, | ||||||||
3.75%, Due 5/20/2011 | 360 | 371 | ||||||
8.50%, Due 11/15/2018 | 515 | 652 | ||||||
Viacom, Inc., 6.875%, Due 4/30/2036 | 2,880 | 3,150 | ||||||
Vodafone Group plc, 6.15%, Due 2/27/2037 | 365 | 380 | ||||||
Wal-Mart Stores, Inc., | ||||||||
7.55%, Due 2/15/2030 | 350 | 442 | ||||||
6.50%, Due 8/15/2037 | 1,340 | 1,532 | ||||||
Waste Management, Inc., | ||||||||
7.375%, Due 3/11/2019 | 255 | 303 | ||||||
6.125%, Due 11/30/2039 | 155 | 161 | ||||||
Wyeth Corp., 5.50%, Due 2/1/2014 | 890 | 987 | ||||||
Xerox Corp., | ||||||||
5.65%, Due 5/15/2013 | 75 | 81 | ||||||
8.25%, Due 5/15/2014 | 160 | 187 | ||||||
93,582 | ||||||||
Other Government - 0.04% | ||||||||
Province of Ontario Canada, 4.10%, Due 6/16/2014 | 350 | 371 | ||||||
Utilities — 1.42% | ||||||||
Columbus Southern Power Co., 5.50%, Due 3/1/2013 | 660 | 717 | ||||||
Consolidated Edison Co. of New York, Inc., 5.50%, Due 12/1/2039 | 350 | 349 | ||||||
Dominion Resources, Inc., | ||||||||
Series A, 5.60%, Due 11/15/2016 | 500 | 546 | ||||||
Series D, 8.875%, Due 1/15/2019 | 120 | 154 | ||||||
Duke Energy Carolinas LLC, 5.10%, Due 4/15/2018 | 350 | 370 | ||||||
Duke Energy Indiana, Inc., 6.05%, Due 6/15/2016 | 520 | 581 | ||||||
Energy Transfer Partners LP, | ||||||||
8.50%, Due 4/15/2014 | 605 | 710 | ||||||
9.00%, Due 4/15/2019 | 260 | 325 | ||||||
Enterprise Products Operating LLC, | ||||||||
5.65%, Due 4/1/2013 | 505 | 546 | ||||||
6.125%, Due 10/15/2039 | 310 | 317 | ||||||
Exelon Generation Co. LLC, 6.25%, Due 10/1/2039 | 310 | 323 | ||||||
FirstEnergy Solutions Corp., 4.80%, Due 2/15/2015 | 175 | 181 | ||||||
MidAmerican Energy Holdings Co., | ||||||||
5.875%, Due 10/1/2012 | 960 | 1,051 | ||||||
6.125%, Due 4/1/2036 | 350 | 365 | ||||||
Pacific Gas & Electric Co., 6.25%, Due 12/1/2013 | 175 | 198 | ||||||
Progress Energy, Inc., 4.875%, Due 12/1/2019 | 350 | 350 | ||||||
Public Service Enterprise Group, Inc., 6.95%, Due 6/1/2012 | 845 | 931 | ||||||
Sempra Energy, 6.50%, Due 6/1/2016 | 315 | 358 | ||||||
Southern Power Co., 6.25%, Due 7/15/2012 | 705 | 772 | ||||||
Spectra Energy Capital Corp., 5.65%, Due 3/1/2020 | 310 | 326 | ||||||
Spectra Energy Capital LLC, 5.668%, Due 8/15/2014 | 310 | 336 | ||||||
TransCanada PipeLines Ltd., 7.625%, Due 1/15/2039 | 340 | 423 | ||||||
Union Electric Co., 6.70%, Due 2/1/2019 | 345 | 392 | ||||||
Virginia Electric and Power Co., 5.40%, Due 4/30/2018 | 350 | 379 | ||||||
Westar Energy, Inc., 6.00%, Due 7/1/2014 | 175 | 195 | ||||||
Wisconsin Electric Power Co., 6.25%, Due 12/1/2015 | 570 | 657 | ||||||
Xcel Energy, Inc., 5.613%, Due 4/1/2017 | 869 | 931 | ||||||
12,783 | ||||||||
Total Corporate Obligations | 155,289 | |||||||
MUNICIPAL SECURITIES - 0.27% | ||||||||
Municipal Obligations - 0.27% | ||||||||
Municipal Electric Authority of Georgia, | ||||||||
6.637%, Due 4/1/2057 | 1,420 | 1,489 | ||||||
6.655%, Due 4/1/2057 | 710 | 746 |
See accompanying notes
16
American Beacon Balanced Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
State of Illinois, 1.823%, Due 1/1/2011 | $ | 200 | $ | 201 | ||||
Total Municipal Securities | 2,436 | |||||||
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS - 1.25% | ||||||||
Commercial Mortgage Backed Securities - 1.25% | ||||||||
Banc of America Commercial Mortgage, Inc., | ||||||||
2005-6 A1, 5.001%, Due 9/10/2047 | 261 | 262 | ||||||
2007-2 A2, 5.634%, Due 4/10/2049 | 700 | 727 | ||||||
Bear Stearns Commercial Mortgage Securities, Inc., | ||||||||
2006-PWR14 A4, 5.201%, Due 12/11/2038 | 665 | 672 | ||||||
2006-PW13 A4, 5.54%, Due 9/11/2041 | 1,420 | 1,469 | ||||||
2004-PWR5 A4, 4.831%, Due 7/11/2042 | 2,010 | 2,044 | ||||||
Citigroup Commercial Mortgage Trust, 2004-C2 A3, 4.38%, Due 10/15/2041 | 995 | 1,011 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust, 2007-CD5 A4, 5.886%, Due 11/15/2044 | 930 | 941 | ||||||
JP Morgan Chase Commercial Mortgage Securities Corp., | ||||||||
2004-CBX A4, 4.529%, Due 1/12/2037 | 555 | 568 | ||||||
2005-LDP1 A2, 4.625%, Due 3/15/2046 | 437 | 445 | ||||||
2007-CB19 A4, 5.937%, Due 2/12/2049 | 550 | 558 | ||||||
2007-CB20 A2, 5.629%, Due 2/12/2051 | 700 | 723 | ||||||
LB-UBS Commercial Mortgage Trust, 2007-C1 A4, 5.424%, Due 2/15/2040 | 500 | 494 | ||||||
Prime Mortgage Trust, 2005-2, 5.25%, Due 7/25/2020 | 1,085 | 1,071 | ||||||
Wachovia Bank Commercial Mortgage Trust, 2007-C32 A2, 5.924%, Due 6/15/2049 | 330 | 340 | ||||||
Total Non-Agency Mortgage-Backed Obligations | 11,325 | |||||||
ASSET-BACKED SECURITIES - 1.00% | ||||||||
American Express Credit Account Master Trust, 2006-2 A, 5.35%, Due 1/15/2014 | 1,400 | 1,470 | ||||||
Bank of America Auto Trust, 2010-1A A2, 0.75%, Due 6/15/2012 ‡ | 650 | 650 | ||||||
BMW Floorplan Master Owner Trust, 2009-1A A, 1.404%, Due 9/15/2014 ‡ # | 350 | 350 | ||||||
Capital One Multi-Asset Execution Trust, 2006-A10 A10, 5.15%, Due 6/15/2014 | 1,050 | 1,107 | ||||||
Citibank Credit Card Issuance Trust, 2009-A2 A2, 1.804%, Due 5/15/2014 # | 650 | 668 | ||||||
Discover Card Master Trust, 2009-A2 A, 1.53%, Due 2/17/2015 # | 200 | 204 | ||||||
Ford Credit Auto Lease Trust, 2010-A A2, 1.04%, Due 3/15/2013 ‡ | 950 | 949 | ||||||
Ford Credit Floorplan Master Owner Trust, 2009-2 A, 1.804%, Due 9/15/2014 # | 350 | 353 | ||||||
Harley-Davidson Motorcycle Trust, 2009-4 A3, 1.87%, Due 2/15/2014 | 350 | 353 | ||||||
Honda Auto Receivables Owner Trust, 2009-3 A4, 3.30%, Due 9/15/2015 | 470 | 487 | ||||||
Hyundai Auto Receivables Trust, 2009-A A4, 3.15%, Due 3/15/2016 | 270 | 279 | ||||||
John Deere Owner Trust, | ||||||||
2009-A A3, 2.59%, Due 10/15/2013 | 480 | 487 | ||||||
2009-A A4, 3.96%, Due 5/16/2016 | 265 | 278 | ||||||
Nissan Master Owner Trust Receivables, 2010-2A A, 1.404%, Due 1/15/2015 ‡ # | 650 | 652 | ||||||
Volkswagen Auto Loan Enhanced Trust, | ||||||||
2010-1 A2, 0.66%, Due 5/21/2012 | 325 | 325 | ||||||
2008-2 A4A, 6.24%, Due 7/20/2015 | 400 | 443 | ||||||
Total Asset-Backed Securities | 9,055 | |||||||
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 5.54% | ||||||||
Federal Home Loan Mortgage Corporation - 2.03% | ||||||||
4.50%, Due 3/1/2019 | 557 | 584 | ||||||
5.00%, Due 10/1/2020 | 221 | 235 | ||||||
5.00%, Due 4/1/2023 | 850 | 900 | ||||||
5.00%, Due 8/1/2033 | 1,200 | 1,255 | ||||||
5.50%, Due 2/1/2034 | 1,010 | 1,071 | ||||||
5.00%, Due 3/1/2034 | 907 | 947 | ||||||
6.00%, Due 6/1/2034 | 646 | 703 | ||||||
6.00%, Due 8/1/2034 | 524 | 568 | ||||||
5.00%, Due 8/1/2035 | 844 | 878 | ||||||
5.00%, Due 9/1/2035 | 1,661 | 1,728 | ||||||
6.00%, Due 8/1/2036 | 626 | 672 | ||||||
5.50%, Due 11/1/2036 | 854 | 904 | ||||||
5.50%, Due 4/1/2037 | 1,085 | 1,148 | ||||||
5.50%, Due 5/1/2037 | 596 | 630 | ||||||
6.00%, Due 9/1/2037 | 362 | 389 | ||||||
5.50%, Due 12/1/2037 | 851 | 900 | ||||||
5.00%, Due 3/1/2038 | 1,301 | 1,350 | ||||||
6.00%, Due 3/1/2038 | 1,855 | 1,988 | ||||||
5.50%, Due 5/1/2038 | 461 | 487 | ||||||
5.50%, Due 10/1/2039 | 896 | 947 | ||||||
18,284 | ||||||||
Federal National Mortgage Association - 2.85% | ||||||||
5.50%, Due 2/1/2014 | 169 | 182 | ||||||
6.00%, Due 4/1/2016 | 181 | 195 | ||||||
5.00%, Due 12/1/2017 | 516 | 550 |
See accompanying notes
17
American Beacon Balanced Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
4.50%, Due 9/1/2018 | $ | 328 | $ | 346 | ||||
4.00%, Due 8/1/2020 | 687 | 714 | ||||||
5.00%, Due 12/1/2023 | 459 | 485 | ||||||
5.00%, Due 3/1/2024 | 523 | 553 | ||||||
4.50%, Due 4/1/2024 | 646 | 673 | ||||||
5.00%, Due 3/1/2034 | 1,271 | 1,327 | ||||||
4.50%, Due 9/1/2034 | 606 | 618 | ||||||
5.50%, Due 12/1/2035 | 691 | 731 | ||||||
5.50%, Due 1/1/2036 | 881 | 931 | ||||||
5.00%, Due 2/1/2036 | 611 | 636 | ||||||
5.50%, Due 2/1/2036 | 619 | 654 | ||||||
5.00%, Due 3/1/2036 | 1,111 | 1,156 | ||||||
5.50%, Due 4/1/2036 | 820 | 867 | ||||||
6.00%, Due 9/1/2036 | 680 | 726 | ||||||
6.50%, Due 9/1/2036 | 1,283 | 1,394 | ||||||
5.50%, Due 12/1/2036 | 1,114 | 1,176 | ||||||
5.50%, Due 2/1/2037 | 1,108 | 1,170 | ||||||
5.50%, Due 8/1/2037 | 796 | 843 | ||||||
5.50%, Due 3/1/2038 | 1,871 | 1,973 | ||||||
5.00%, Due 4/1/2038 | 3,494 | 3,622 | ||||||
5.00%, Due 6/1/2038 | 1,639 | 1,700 | ||||||
5.50%, Due 6/1/2038 | 2,002 | 2,111 | ||||||
6.00%, Due 9/1/2038 | 402 | 428 | ||||||
25,761 | ||||||||
Government National Mortgage Association - 0.66% | ||||||||
7.00%, Due 12/15/2025 | 226 | 253 | ||||||
4.201%, Due 8/16/2026 | 512 | 524 | ||||||
6.50%, Due 8/15/2027 | 259 | 283 | ||||||
6.50%, Due 11/15/2027 | 268 | 293 | ||||||
7.50%, Due 12/15/2028 | 205 | 231 | ||||||
5.50%, Due 7/15/2033 | 682 | 731 | ||||||
6.00%, Due 12/15/2033 | 695 | 756 | ||||||
5.50%, Due 2/20/2034 | 935 | 998 | ||||||
5.50%, Due 2/15/2040 | 1,760 | 1,876 | ||||||
5,945 | ||||||||
Total U.S. Agency Mortgage-Backed Obligations | 49,990 | |||||||
U.S. AGENCY OBLIGATIONS - 5.14% | ||||||||
Federal Farm Credit Bank - 0.07% | ||||||||
3.00%, Due 9/22/2014 | 600 | 614 | ||||||
Federal Home Loan Mortgage Corporation - 2.67% | ||||||||
4.50%, Due 1/15/2015 | 22,140 | 24,034 | ||||||
Federal National Mortgage Association - 2.38% | ||||||||
5.125%, Due 1/2/2014 | 645 | 705 | ||||||
4.625%, Due 10/15/2014 | 1,000 | 1,092 | ||||||
6.25%, Due 5/15/2029 | 12,200 | 14,282 | ||||||
6.00%, Due 4/18/2036 | 5,065 | 5,416 | ||||||
21,495 | ||||||||
Tennessee Valley Authority - 0.02% | ||||||||
5.25%, Due 9/15/2039 | 170 | 173 | ||||||
Total U.S. Agency Obligations | 46,316 | |||||||
U.S. TREASURY OBLIGATIONS - 4.67% | ||||||||
1.375%, Due 2/15/2012 | 4,025 | 4,062 | ||||||
2.375%, Due 2/28/2015 | 4,150 | 4,153 | ||||||
4.25%, Due 8/15/2015 | 1,900 | 2,066 | ||||||
3.00%, Due 9/30/2016 | 1,000 | 1,001 | ||||||
3.125%, Due 10/31/2016 | 6,500 | 6,549 | ||||||
3.75%, Due 11/15/2018 | 4,000 | 4,086 | ||||||
3.625%, Due 2/15/2020 | 8,605 | 8,579 | ||||||
7.875%, Due 2/15/2021 | 1,200 | 1,635 | ||||||
6.25%, Due 8/15/2023 | 800 | 978 | ||||||
6.875%, Due 8/15/2025 | 580 | 756 | ||||||
5.25%, Due 11/15/2028 | 750 | 837 | ||||||
5.375%, Due 2/15/2031 | 775 | 880 | ||||||
4.75%, Due 2/15/2037 | 130 | 136 | ||||||
4.50%, Due 5/15/2038 | 2,370 | 2,369 | ||||||
4.50%, Due 8/15/2039 | 1,800 | 1,791 | ||||||
4.375%, Due 11/15/2039 | 2,260 | 2,203 | ||||||
Total U.S. Treasury Obligations | 42,081 | |||||||
Shares | ||||||||
SHORT TERM INVESTMENTS - 3.77% | ||||||||
American Beacon U.S. Government Money Market Select Fund § | 5,000,000 | 5,000 | ||||||
JPMorgan U.S. Government Money Market Fund | 19,823,770 | 19,824 | ||||||
Par | ||||||||
Amount | ||||||||
U.S. Treasury, 0.14%, Due 6/17/2010 ¤ | $ | 2,978 | 2,977 | |||||
0.14%, Due 7/15/2010 ¤ | 125 | 125 | ||||||
0.22%, Due 10/21/2010 | 5,000 | 4,995 | ||||||
0.01%, Due 4/7/2011 | 1,050 | 1,045 | ||||||
Total Short Term Investments | 33,966 | |||||||
TOTAL INVESTMENTS 99.49% - (Cost $820,374) | 897,196 | |||||||
OTHER ASSETS, NET OF LIABILITIES - 0.51% | 4,583 | |||||||
TOTAL NET ASSETS - 100.00% | $ | 901,779 | ||||||
See accompanying notes
18
American Beacon Balanced Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Percentages are stated as a percent of net assets. | ||
^ | Non-income producing security. | |
‡ | Security exempt from registration under the Securities Act of 1933. These securities may be resold to qualified institutional buyers pursuant to Rule 144A. At the period end, the value of these securities amounted to$11,490 or 1.27% of net assets. The Fund has no right to demand registration of these securities. | |
# | The coupon rate shown on floating or adjustable rate securities represents the rate at period end. The due date on these types of securities reflects the final maturity date. | |
§ | The Fund is affiliated by having the same investment advisor. | |
¤ | At April 30, 2010, security pledged as collateral for open futures contracts. |
Futures Contracts
(dollars in thousands)
Unrealized | ||||||||||||||||
Number of | Expiration | Market | Appreciation/ | |||||||||||||
Contracts | Date | Value | (Depreciation) | |||||||||||||
Emini S&P 500 Index | 450 | Jun 2010 | $ | 26,627 | $ | 470 | ||||||||||
See accompanying notes
19
American Beacon Large Cap Growth Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
COMMON STOCKS - 92.89% | ||||||||
CONSUMER DISCRETIONARY - 17.63% | ||||||||
Hotels, Restaurants & Leisure - 1.34% | ||||||||
Cheesecake Factory, Inc. ^ | 24,035 | $ | 653 | |||||
Yum! Brands, Inc. | 9,600 | 407 | ||||||
1,060 | ||||||||
Internet & Catalog Retail - 3.56% | ||||||||
Amazon.com, Inc. ^ | 4,950 | 678 | ||||||
eBay, Inc. ^ | 23,967 | 571 | ||||||
priceline.com, Inc. ^ | 6,035 | 1,582 | ||||||
2,831 | ||||||||
Leisure Equipment & Products - 0.85% | ||||||||
Mattel, Inc. | 29,393 | 678 | ||||||
Media - 0.78% | ||||||||
The McGraw-Hill Companies, Inc. | 18,460 | 622 | ||||||
Multiline Retail - 3.72% | ||||||||
Costco Wholesale Corp. | 9,400 | 555 | ||||||
Kohl’s Corp. ^ | 9,400 | 517 | ||||||
Nordstrom, Inc. | 17,164 | 709 | ||||||
Target Corp. | 20,654 | 1,175 | ||||||
2,956 | ||||||||
Specialty Retail - 6.48% | ||||||||
Aéropostale, Inc. ^ | 25,935 | 753 | ||||||
AutoZone, Inc. ^ | 3,943 | 729 | ||||||
Dollar Tree, Inc. ^ | 12,306 | 747 | ||||||
O’Reilly Automotive, Inc. ^ | 9,450 | 462 | ||||||
Ross Stores, Inc. | 13,299 | 745 | ||||||
Staples, Inc. | 16,800 | 395 | ||||||
Tiffany & Co. | 14,823 | 719 | ||||||
Urban Outfitters, Inc. ^ | 16,100 | 604 | ||||||
5,154 | ||||||||
Textiles & Apparel - 0.90% | ||||||||
Coach, Inc. | 17,079 | 713 | ||||||
Total Consumer Discretionary | 14,014 | |||||||
CONSUMER STAPLES - 2.49% | ||||||||
Beverages - 0.52% | ||||||||
PepsiCo, Inc. | 6,300 | 411 | ||||||
Household Products - 1.65% | ||||||||
Colgate-Palmolive Co. | 8,038 | 676 | ||||||
The Procter & Gamble Co. | 10,244 | 637 | ||||||
1,313 | ||||||||
Personal Products - 0.32% | ||||||||
The Esteé Lauder Companies, Inc. | 3,900 | 257 | ||||||
Total Consumer Staples | 1,981 | |||||||
�� | ||||||||
ENERGY - 6.43% | ||||||||
Energy Equipment & Services - 4.00% | ||||||||
Dresser-Rand Group, Inc. ^ | 12,500 | 441 | ||||||
FMC Technologies, Inc. ^ | 6,050 | 410 | ||||||
Helmerich & Payne, Inc. | 17,259 | 701 | ||||||
Schlumberger Ltd. | 15,100 | 1,078 | ||||||
Transocean Ltd. ^ | 7,508 | 544 | ||||||
3,174 | ||||||||
Oil & Gas - 2.43% | ||||||||
EOG Resources, Inc. | 3,500 | 392 | ||||||
Occidental Petroleum Corp. | 12,005 | 1,064 | ||||||
Peabody Energy Corp. | 10,200 | 477 | ||||||
1,933 | ||||||||
Total Energy | 5,107 | |||||||
FINANCIALS - 7.63% | ||||||||
Banks - 3.14% | ||||||||
Goldman Sachs Group, Inc. | 9,213 | 1,338 | ||||||
JPMorgan Chase & Co. | 27,300 | 1,162 | ||||||
2,500 | ||||||||
Diversified Financials - 4.49% | ||||||||
Charles Schwab Corp. | 20,100 | 388 | ||||||
Franklin Resources, Inc. | 6,047 | 699 | ||||||
IntercontinentalExchange, Inc. ^ | 3,350 | 391 | ||||||
Invesco Ltd. | 7,000 | 161 | ||||||
Mastercard, Inc. | 2,050 | 508 | ||||||
Visa, Inc. | 15,750 | 1,421 | ||||||
3,568 | ||||||||
Total Financials | 6,068 | |||||||
HEALTH CARE - 10.18% | ||||||||
Biotechnology - 1.78% | ||||||||
Celgene Corp. ^ | 9,900 | 613 | ||||||
Gilead Sciences, Inc. ^ | 20,202 | 802 | ||||||
1,415 | ||||||||
Health Care Providers & Services - 3.20% | ||||||||
AmerisourceBergen Corp. | 23,673 | 730 | ||||||
Express Scripts, Inc. ^ | 5,400 | 541 | ||||||
McKesson Corp. | 10,659 | 691 | ||||||
UnitedHealth Group, Inc. | 19,368 | 587 | ||||||
2,549 |
See accompanying notes
20
American Beacon Large Cap Growth Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
Pharmaceuticals - 5.20% | ||||||||
Abbott Laboratories | 12,990 | $ | 665 | |||||
Amgen, Inc. ^ | 11,200 | 642 | ||||||
Johnson & Johnson | 10,045 | 646 | ||||||
Medco Health Solutions, Inc. ^ | 17,200 | 1,013 | ||||||
Shire plc, ADR | 5,800 | 382 | ||||||
Teva Pharmaceutical Industries Ltd., ADR | 13,350 | 784 | ||||||
4,132 | ||||||||
Total Health Care | 8,096 | |||||||
INDUSTRIALS - 15.66% | ||||||||
Aerospace & Defense - 1.90% | ||||||||
Lockheed Martin Corp. | 7,831 | 665 | ||||||
United Technologies Corp. | 11,300 | 847 | ||||||
1,512 | ||||||||
Air Freight & Couriers - 0.51% | ||||||||
CH Robinson Worldwide, Inc. | 6,700 | 404 | ||||||
Commercial Services & Supplies - 1.18% | ||||||||
ITT Educational Services, Inc. ^ | 6,284 | 636 | ||||||
New Oriental Education & Technology Group, ADR ^ | 3,200 | 299 | ||||||
935 | ||||||||
Construction & Engineering - 0.43% | ||||||||
Fluor Corp. | 6,500 | 343 | ||||||
Electrical Equipment - 0.36% | ||||||||
First Solar, Inc. ^ | 2,000 | 287 | ||||||
Electronic Equipment & Instruments - 0.84% | ||||||||
Emerson Electric Co. | 12,757 | 666 | ||||||
Energy - 0.72% | ||||||||
Walter Energy, Inc. | 7,131 | 576 | ||||||
Industrial Conglomerates - 0.91% | ||||||||
3M Co. | 8,182 | 726 | ||||||
Machinery - 7.38% | ||||||||
Danaher Corp. | 12,900 | 1,087 | ||||||
Deere & Co. | 17,746 | 1,062 | ||||||
Eaton Corp. | 9,236 | 713 | ||||||
Flowserve Corp. | 9,773 | 1,120 | ||||||
Illinois Tool Works, Inc. | 11,400 | 582 | ||||||
Joy Global, Inc. | 11,004 | 625 | ||||||
Parker Hannifin Corp. ^ | 9,829 | 680 | ||||||
5,869 | ||||||||
Road & Rail - 1.43% | ||||||||
Union Pacific Corp. | 15,000 | 1,135 | ||||||
Total Industrials | 12,453 | |||||||
INFORMATION TECHNOLOGY - 31.19% | ||||||||
Communications Equipment - 4.37% | ||||||||
Cisco Systems, Inc. ^ | 64,379 | 1,733 | ||||||
Corning, Inc. | 34,075 | 656 | ||||||
Juniper Networks, Inc. ^ | 7,350 | 209 | ||||||
QUALCOMM, Inc. | 22,600 | 875 | ||||||
3,473 | ||||||||
Computers & Peripherals - 10.91% | ||||||||
Apple Computer, Inc. ^ | 9,558 | 2,496 | ||||||
Dell, Inc. ^ | 25,200 | 408 | ||||||
EMC Corp. ^ | 59,611 | 1,133 | ||||||
Hewlett-Packard Co. | 37,353 | 1,941 | ||||||
International Business Machines Corp. | 5,150 | 664 | ||||||
SanDisk Corp. ^ | 16,792 | 670 | ||||||
Seagate Technology ^ | 36,959 | 679 | ||||||
Western Digital Corp. ^ | 16,568 | 681 | ||||||
8,672 | ||||||||
Electronic Equipment & Instruments - 2.59% | ||||||||
Agilent Technologies, Inc. ^ | 9,700 | 352 | ||||||
Broadcom Corp. | 29,670 | 1,023 | ||||||
Intel Corp. | 29,880 | 682 | ||||||
2,057 | ||||||||
Internet Software & Services - 2.46% | ||||||||
Baidu, Inc., ADR ^ | 630 | 434 | ||||||
Equinix, Inc. ^ | 6,700 | 675 | ||||||
Google, Inc. ^ | 1,620 | 851 | ||||||
1,960 | ||||||||
IT Consulting & Services - 2.47% | ||||||||
Cognizant Technology Solutions Corp. ^ | 38,448 | 1,968 | ||||||
Semiconductor Equipment & Products - 4.09% | ||||||||
Altera Corp. | 27,543 | 698 | ||||||
Lam Research Corp. ^ | 9,500 | 385 | ||||||
Linear Technology Corp. | 9,500 | 286 | ||||||
Marvell Technology Group Ltd. ^ | 23,300 | 481 | ||||||
QLogic Corp. ^ | 35,648 | 691 | ||||||
Texas Instruments, Inc. | 27,263 | 709 | ||||||
3,250 | ||||||||
See accompanying notes
21
American Beacon Large Cap Growth Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||||
(dollars in thousands) | ||||||||||
Software - 4.30% | ||||||||||
Citrix Systems, Inc. ^ | 8,000 | $ | 376 | |||||||
Microsoft Corp. | 44,526 | 1,360 | ||||||||
Oracle Corp. | 56,107 | 1,450 | ||||||||
Salesforce.com, Inc. ^ | 1,100 | 94 | ||||||||
VMware, Inc. ^ | 2,300 | 142 | ||||||||
3,422 | ||||||||||
Total Information Technology | 24,802 | |||||||||
MATERIALS - 1.68% | ||||||||||
Chemicals - 0.49% | ||||||||||
Ecolab, Inc. | 7,950 | 388 | ||||||||
Metals & Mining - 1.19% | ||||||||||
Cliffs Natural Resources, Inc. | 9,100 | 569 | ||||||||
Freeport-McMoRan Copper & Gold, Inc. | 5,000 | 378 | ||||||||
947 | ||||||||||
Total Materials | 1,335 | |||||||||
Total Common Stocks | 73,856 | |||||||||
SHORT TERM INVESTMENTS - 5.76% | ||||||||||
JPMorgan U.S. Government Money Market Fund | 4,035,007 | 4,035 | ||||||||
Par | ||||||||||
Amount | ||||||||||
U.S. Treasury, | ||||||||||
0.14%, Due 6/17/2010 ‡ | $ | 193 | 193 | |||||||
0.14%, Due 7/15/2010 ‡ | 350 | 350 | ||||||||
Total Short Term Investments | 4,578 | |||||||||
TOTAL INVESTMENTS 98.65% — (Cost $63,689) | 78,434 | |||||||||
OTHER ASSETS, NET OF LIABILITIES - 1.35% | 1,076 | |||||||||
TOTAL NET ASSETS - 100.00% | $ | 79,510 |
Percentages are stated as a percent of net assets. | ||
^ | Non-income producing security. | |
‡ | At April 30, 2010, security pledged as collateral for open futures contracts. |
Futures Contracts
(dollars in thousands)
Unrealized | ||||||||||||||||
Number of | Expiration | Market | Appreciation/ | |||||||||||||
Contracts | Date | Value | (Depreciation) | |||||||||||||
Emini S&P 500 Index | 76 | Jun 2010 | $ | 4,497 | $ | (5 | ) | |||||||||
See accompanying notes
22
American Beacon Mid-Cap Value Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
COMMON STOCKS - 94.06% | ||||||||
CONSUMER DISCRETIONARY - 18.24% | ||||||||
Auto Components - 1.65% | ||||||||
Advance Auto Parts, Inc. | 17,300 | $ | 780 | |||||
Magna International, Inc. | 14,050 | 923 | ||||||
1,703 | ||||||||
Hotels, Restaurants & Leisure - 2.29% | ||||||||
International Game Technology | 68,900 | 1,452 | ||||||
Royal Caribbean Cruises Ltd. ^ | 25,600 | 918 | ||||||
2,370 | ||||||||
Household Durables - 3.27% | ||||||||
Fortune Brands, Inc. | 19,125 | 1,002 | ||||||
Stanley Black & Decker, Inc. | 38,194 | 2,374 | ||||||
3,376 | ||||||||
Media - 1.43% | ||||||||
Omnicom Group, Inc. | 34,525 | 1,473 | ||||||
Multiline Retail - 1.36% | ||||||||
J.C. Penney Company, Inc. | 47,975 | 1,399 | ||||||
Specialty Retail - 6.77% | ||||||||
Family Dollar Stores, Inc. | 31,900 | 1,262 | ||||||
GameStop Corp. ^ | 30,700 | 746 | ||||||
Hanesbrands, Inc. ^ | 42,800 | 1,218 | ||||||
Limited Brands, Inc. | 43,100 | 1,155 | ||||||
Regis Corp. | 39,625 | 758 | ||||||
Rent-A-Center, Inc. ^ | 29,200 | 754 | ||||||
Sherwin-Williams Co. | 14,075 | 1,099 | ||||||
6,992 | ||||||||
Textiles & Apparel - 1.47% | ||||||||
Gildan Activewear, Inc. ^ | 40,375 | 1,168 | ||||||
Sealy Corp. ^ | 93,775 | 351 | ||||||
1,519 | ||||||||
Total Consumer Discretionary | 18,832 | |||||||
CONSUMER STAPLES - 3.07% | ||||||||
Food & Drug Retailing - 1.00% | ||||||||
Sysco Corp. | 32,700 | 1,031 | ||||||
Personal Products - 0.58% | ||||||||
Avon Products, Inc. | 18,425 | 596 | ||||||
Tobacco - 1.49% | ||||||||
Lorillard, Inc. | 9,400 | 737 | ||||||
Reynolds American, Inc. | 15,000 | 801 | ||||||
1,538 | ||||||||
Total Consumer Staples | 3,165 | |||||||
ENERGY - 3.27% | ||||||||
Energy Equipment & Services - 0.36% | ||||||||
Baker Hughes, Inc. ^ | 7,577 | 377 | ||||||
Oil & Gas - 2.91% | ||||||||
El Paso Corp. | 83,400 | 1,009 | ||||||
Murphy Oil Corp. | 20,200 | 1,215 | ||||||
Valero Energy Corp. | 37,475 | 779 | ||||||
3,003 | ||||||||
Total Energy | 3,380 | |||||||
FINANCIALS - 26.87% | ||||||||
Banks - 7.96% | ||||||||
Comerica, Inc. | 30,350 | 1,275 | ||||||
Fifth Third Bancorp | 164,450 | 2,452 | ||||||
First Horizon National Corp. ^ | 13,525 | 191 | ||||||
KeyCorp | 64,875 | 585 | ||||||
New York Community Bancorp, Inc. | 65,700 | 1,082 | ||||||
PNC Financial Services Group, Inc. | 33,903 | 2,279 | ||||||
Primerica, Inc. ^ | 15,050 | 357 | ||||||
8,221 | ||||||||
Diversified Financials - 3.64% | ||||||||
Ameriprise Financial, Inc. | 16,300 | 756 | ||||||
Capital One Financial Corp. | 34,700 | 1,506 | ||||||
Marshall & Ilsley Corp. | 63,850 | 581 | ||||||
SLM Corp. ^ | 74,900 | 917 | ||||||
3,760 | ||||||||
Insurance - 13.15% | ||||||||
Axis Capital Holdings Ltd. | 32,900 | 1,025 | ||||||
The Chubb Corp. | 19,200 | 1,015 | ||||||
CNO Financial Group, Inc. ^ | 92,050 | 543 | ||||||
Delphi Financial Group, Inc. | 52,775 | 1,451 | ||||||
Fidelity National Financial, Inc. | 72,700 | 1,104 | ||||||
Hartford Financial Services Group, Inc. | 15,400 | 440 | ||||||
Protective Life Corp. | 68,525 | 1,649 | ||||||
RenaissanceRe Holdings Ltd. | 21,050 | 1,178 | ||||||
Torchmark Corp. | 27,925 | 1,495 | ||||||
Validus Holdings Ltd. | 28,932 | 740 | ||||||
Willis Group Holdings plc | 72,545 | 2,499 | ||||||
XL Capital Ltd. | 24,300 | 433 | ||||||
13,572 | ||||||||
See accompanying notes
23
American Beacon Mid-Cap Value Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
Real Estate - 2.12% | ||||||||
Annaly Capital Management, Inc. | 55,300 | $ | 938 | |||||
Hospitality Properties Trust | 47,350 | 1,254 | ||||||
2,192 | ||||||||
Total Financials | 27,745 | |||||||
HEALTH CARE - 10.26% | ||||||||
Health Care Equipment & Supplies - 2.58% | ||||||||
Immucor, Inc. ^ | 56,225 | 1,204 | ||||||
Zimmer Holdings, Inc. ^ | 24,025 | 1,463 | ||||||
2,667 | ||||||||
Health Care Providers & Services - 7.68% | ||||||||
Aetna, Inc. | 35,425 | 1,047 | ||||||
Cardinal Health, Inc. | 32,100 | 1,113 | ||||||
CIGNA Corp. | 29,500 | 946 | ||||||
Coventry Health Care, Inc. ^ | 56,600 | 1,344 | ||||||
Laboratory Corp. of America Holdings ^ | 6,475 | 509 | ||||||
Mednax, Inc. ^ | 13,850 | 761 | ||||||
Omnicare, Inc. | 46,200 | 1,284 | ||||||
Quest Diagnostics, Inc. | 16,100 | 920 | ||||||
7,924 | ||||||||
Total Health Care | 10,591 | |||||||
INDUSTRIALS - 13.51% | ||||||||
Aerospace & Defense - 5.25% | ||||||||
Goodrich Corp. | 16,500 | 1,224 | ||||||
L-3 Communications Holdings, Inc. | 30,750 | 2,877 | ||||||
Spirit Aerosystems Holdings, Inc. ^ | 59,650 | 1,323 | ||||||
5,424 | ||||||||
Commercial Services & Supplies - 0.72% | ||||||||
Dun & Bradstreet Corp. | 9,700 | 747 | ||||||
Electrical Equipment - 0.96% | ||||||||
Cooper Industries plc | 20,225 | 993 | ||||||
Machinery - 5.70% | ||||||||
Brady Corp. | 43,200 | 1,484 | ||||||
Eaton Corp. | 19,900 | 1,536 | ||||||
Graco, Inc. | 27,500 | 954 | ||||||
ITT Industries, Inc. | 16,500 | 917 | ||||||
SPX Corp. | 14,200 | 992 | ||||||
5,883 | ||||||||
Road & Rail - 0.88% | ||||||||
Ryder System, Inc. | 19,400 | 902 | ||||||
Total Industrials | 13,949 | |||||||
INFORMATION TECHNOLOGY - 10.51% | ||||||||
Communications Equipment - 1.15% | ||||||||
Alcatel-Lucent, ADR | 271,398 | 860 | ||||||
Motorola, Inc. ^ | 46,300 | 328 | ||||||
1,188 | ||||||||
Electrical Equipment - 0.73% | ||||||||
Molex, Inc. | 33,600 | 753 | ||||||
Electronic Equipment & Instruments - 3.00% | ||||||||
Avnet, Inc. ^ | 44,425 | 1,420 | ||||||
Tyco Electronics Ltd. | 52,175 | 1,676 | ||||||
3,096 | ||||||||
IT Consulting & Services - 2.51% | ||||||||
Alliance Data Systems Corp. ^ | 17,500 | 1,314 | ||||||
Computer Sciences Corp. ^ | 24,300 | 1,273 | ||||||
2,587 | ||||||||
Semiconductor Equipment & Products - 2.02% | ||||||||
Lam Research Corp. ^ | 23,850 | 967 | ||||||
Microchip Technology, Inc. | 38,300 | 1,119 | ||||||
2,086 | ||||||||
Software - 1.10% | ||||||||
CA, Inc. | 49,950 | 1,139 | ||||||
Total Information Technology | 10,849 | |||||||
MATERIALS - 0.87% | ||||||||
Containers & Packaging - 0.87% | ||||||||
Jarden Corp. | 27,825 | 894 | ||||||
UTILITIES - 7.46% | ||||||||
Electric Utilities - 5.12% | ||||||||
CenterPoint Energy, Inc. | 64,600 | 928 | ||||||
Edison International | 23,900 | 821 | ||||||
Pinnacle West Capital Corp. | 23,100 | 863 | ||||||
PNM Resources, Inc. | 61,425 | 835 | ||||||
Portland General Electric Co. | 42,075 | 836 | ||||||
Xcel Energy, Inc. | 46,300 | 1,007 | ||||||
5,290 | ||||||||
Gas Utilities - 2.34% | ||||||||
MDU Resources Group, Inc. | 45,450 | 964 | ||||||
Sempra Energy | 14,925 | 734 |
See accompanying notes
24
American Beacon Mid-Cap Value Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
Spectra Energy Corp. | 30,700 | $ | 716 | |||||
2,414 | ||||||||
Total Utilities | 7,704 | |||||||
Total Common Stocks | 97,109 | |||||||
PREFERRED STOCKS - 0.98% | ||||||||
CONSUMER DISCRETIONARY - 0.98% | ||||||||
Textiles & Apparel - 0.98% | ||||||||
Sealy Corp. | 9,571 | 1,014 | ||||||
SHORT TERM INVESTMENTS - 4.80% | ||||||||
JPMorgan U.S. Government Money Market Fund | 4,145,346 | 4,145 | ||||||
Par | ||||||||
Amount | ||||||||
U.S. Treasury, | ||||||||
0.14%, Due 6/17/2010 ‡ | $ | 409 | 409 | |||||
0.14%, Due 7/15/2010 ‡ | 400 | 400 | ||||||
Total Short Term Investments | 4,954 | |||||||
TOTAL INVESTMENTS 99.84% — (Cost $89,541) | 103,077 | |||||||
OTHER ASSETS, NET OF LIABILITIES - 0.16% | 169 | |||||||
TOTAL NET ASSETS - 100.00% | $ | 103,246 | ||||||
Percentages are stated as a percent of net assets. | ||
^ | Non-income producing security. | |
‡ | At April 30, 2010, security pledged as collateral for open futures contracts. |
Futures Contracts
(dollars in thousands)
Unrealized | ||||||||||||||||
Number of | Expiration | Market | Appreciation/ | |||||||||||||
Contracts | Date | Value | (Depreciation) | |||||||||||||
Emini S&P 400 Index | 59 | Jun 2010 | $ | 4,847 | $ | 95 | ||||||||||
See accompanying notes
25
American Beacon Funds
Statements of Assets and Liabilities
April 30, 2010 (Unaudited) (in thousands except share and per share amounts)
Large Cap | Mid-Cap | |||||||||||
Balanced Fund | Growth Fund | Value Fund | ||||||||||
Assets: | ||||||||||||
Investments in unaffiliated securities, at value A | $ | 892,196 | $ | 78,434 | $ | 103,077 | ||||||
Investments in affiliated securities, at value B | 5,000 | — | — | |||||||||
Receivable for investments sold | 1,935 | 1,758 | 180 | |||||||||
Dividends and interest receivable | 3,734 | 26 | 57 | |||||||||
Receivable for fund shares sold | 2,041 | 251 | 295 | |||||||||
Receivable for tax reclaims | 11 | — | — | |||||||||
Receivable for expense reimbursement | — | — | 1 | |||||||||
Prepaid expenses | 43 | 19 | 37 | |||||||||
Total assets | 904,960 | 80,488 | 103,647 | |||||||||
Liabilities: | ||||||||||||
Payable for investments purchased | 1,750 | 728 | 48 | |||||||||
Payable for fund shares redeemed | 136 | 6 | 5 | |||||||||
Payable for variation margin on open futures contracts | 503 | 99 | 137 | |||||||||
Management and investment advisory fees payable (Note 2) | 557 | 112 | 173 | |||||||||
Administrative service and service fees payable | 89 | 3 | 15 | |||||||||
Professional fees payable | 16 | 11 | 10 | |||||||||
Trustee fees payable | 14 | 1 | — | |||||||||
Prospectus and shareholder reports | 70 | 13 | 9 | |||||||||
Other liabilities | 46 | 5 | 4 | |||||||||
Total liabilities | 3,181 | 978 | 401 | |||||||||
Net Assets | $ | 901,779 | $ | 79,510 | $ | 103,246 | ||||||
Analysis of Net Assets: | ||||||||||||
Paid-in-capital | 937,353 | 90,826 | 110,250 | |||||||||
Undistributed net investment income | 4,716 | 27 | 220 | |||||||||
Accumulated net realized (loss) | (117,582 | ) | (26,083 | ) | (20,855 | ) | ||||||
Unrealized appreciation of investments, futures contracts, and foreign currency | 77,292 | 14,740 | 13,631 | |||||||||
Net assets | $ | 901,779 | $ | 79,510 | $ | 103,246 | ||||||
Shares outstanding (no par value): | ||||||||||||
Institutional Class | 2,790,032 | 14,090 | 307,692 | |||||||||
Y Class | 3,562 | 185 | 118 | |||||||||
Investor Class | 8,293,519 | N/A | 3,406,948 | |||||||||
Advisor Class | 559,404 | N/A | 1,917 | |||||||||
AMR Class | 62,319,430 | 13,921,944 | 7,282,093 | |||||||||
Net asset value, offering and redemption price per share: | ||||||||||||
Institutional Class | $ | 12.81 | $ | 5.68 | $ | 9.41 | ||||||
Y Class | $ | 12.80 | $ | 5.67 | $ | 9.41 | ||||||
Investor Class | $ | 11.85 | N/A | $ | 9.35 | |||||||
Advisor Class | $ | 12.30 | N/A | $ | 9.29 | |||||||
AMR Class | $ | 12.21 | $ | 5.71 | $ | 9.40 | ||||||
A Cost of investments in unaffiliated securities | $ | 815,374 | $ | 63,689 | $ | 89,541 | ||||||
B Cost of investments in affiliated securities | $ | 5,000 | $ | — | $ | — |
See accompanying notes
26
American Beacon Funds
Statements of Operations
Six Months ended April 30, 2010 (in thousands) (Unaudited)
Large Cap | Mid-Cap | |||||||||||
Balanced Fund | Growth Fund | Value Fund | ||||||||||
Investment Income: | ||||||||||||
Dividend income from unaffiliated securities (net of foreign taxes) A | $ | 6,140 | $ | 345 | $ | 872 | ||||||
Dividend income from affiliated securities | 2 | — | — | |||||||||
Interest income | 7,582 | — | — | |||||||||
Total investment income | 13,724 | 345 | 872 | |||||||||
Expenses: | ||||||||||||
Management and investment advisory fees (Note 2) | 978 | 193 | 269 | |||||||||
Administrative service fees (Note 2): | ||||||||||||
Institutional Class | 46 | — | 4 | |||||||||
Investor Class | 141 | — | 40 | |||||||||
Advisor Class | 10 | — | — | |||||||||
AMR Class | 180 | 19 | 15 | |||||||||
Transfer agent fees: | ||||||||||||
Institutional Class | 1 | — | 1 | |||||||||
Investor Class | 4 | — | 1 | |||||||||
AMR Class | 20 | 1 | 1 | |||||||||
Custody and fund accounting fees | 64 | 6 | 7 | |||||||||
Professional fees | 25 | 14 | 13 | |||||||||
Registration fees and expenses | 21 | 2 | 18 | |||||||||
Service fees (Note 2): | ||||||||||||
Investor Class | 158 | — | 34 | |||||||||
Advisor Class | 9 | — | — | |||||||||
Distribution fees- Advisor Class (Note 2) | 8 | — | — | |||||||||
Prospectus and shareholder reports | 35 | 7 | 4 | |||||||||
Trustee fees | 27 | 2 | 3 | |||||||||
Other expenses | 34 | 5 | 5 | |||||||||
Total expenses | 1,761 | 249 | 415 | |||||||||
Net (fees waived and expenses reimbursed)/recouped by Manager (Note 2) | — | — | (8 | ) | ||||||||
Net expenses | 1,761 | 249 | 407 | |||||||||
Net investment income | 11,963 | 96 | 465 | |||||||||
Realized and unrealized gain (loss) on investments: | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments | 5,428 | 1,899 | 193 | |||||||||
Commission recapture (Note 1) | 4 | 5 | 7 | |||||||||
Futures contracts | 3,641 | 660 | 1,135 | |||||||||
Change in net unrealized appreciation or depreciation of: | ||||||||||||
Investments | 70,143 | 7,017 | 17,502 | |||||||||
Futures contracts | 1,302 | 92 | 357 | |||||||||
Net gain on investments | 80,518 | 9,673 | 19,194 | |||||||||
Net increase in net assets resulting from operations | $ | 92,481 | $ | 9,769 | $ | 19,659 | ||||||
A Foreign taxes | $ | — | $ | 2 | $ | — |
See accompanying notes
27
American Beacon Funds
Statements of Changes in Net Assets (in thousands)
Balanced Fund | Large Cap Growth Fund | Mid-Cap Value Fund | ||||||||||||||||||||||
Six Months | Year | Six Months | Year | Six Months | Year | |||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||
April 30, | October 31, | April 30, | October | April 30, | October | |||||||||||||||||||
2010 | 2009 | 2010 | 31, 2009 | 2010 | 31, 2009 | |||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||
Increase (Decrease) in Net Assets: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 11,963 | $ | 26,761 | $ | 96 | $ | 501 | $ | 465 | $ | 731 | ||||||||||||
Net realized gain (loss) on investments, futures contracts, and foreign currency transactions | 9,073 | (52,176 | ) | 2,564 | (13,613 | ) | 1,335 | (9,782 | ) | |||||||||||||||
Change in net unrealized appreciation or depreciation of investments, futures contracts, and foreign currency translations | 71,445 | 140,003 | 7,109 | 20,450 | 17,859 | 24,803 | ||||||||||||||||||
Net increase in net assets resulting from operations | 92,481 | 114,588 | 9,769 | 7,338 | 19,659 | 15,752 | ||||||||||||||||||
Distributions to Shareholders: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Institutional Class | (829 | ) | (1,697 | ) | — | (1 | ) | (15 | ) | (42 | ) | |||||||||||||
Investor Class | (2,602 | ) | (4,916 | ) | — | — | (161 | ) | (285 | ) | ||||||||||||||
Advisor Class | (174 | ) | — | — | — | — | — | |||||||||||||||||
AMR Class | (22,873 | ) | (28,892 | ) | (342 | ) | (836 | ) | (561 | ) | (838 | ) | ||||||||||||
Net distributions to shareholders | (26,478 | ) | (35,505 | ) | (342 | ) | (837 | ) | (737 | ) | (1,165 | ) | ||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||
Proceeds from sales of shares | 46,770 | 88,318 | 11,076 | 20,562 | 16,984 | 26,852 | ||||||||||||||||||
Reinvestment of dividends and distributions | 26,424 | 35,347 | 342 | 837 | 736 | 1,163 | ||||||||||||||||||
Cost of shares redeemed | (50,150 | ) | (143,929 | ) | (12,619 | ) | (13,675 | ) | (12,607 | ) | (16,512 | ) | ||||||||||||
Redemption fees | — | — | — | — | 34 | 27 | ||||||||||||||||||
Net increase (decrease) in net assets from capital share transactions | 23,044 | (20,264 | ) | (1,201 | ) | 7,724 | 5,147 | 11,530 | ||||||||||||||||
Net increase in net assets | 89,047 | 58,819 | 8,226 | 14,225 | 24,069 | 26,117 | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 812,732 | 753,913 | 71,284 | 57,059 | 79,177 | 53,060 | ||||||||||||||||||
End of Period * | $ | 901,779 | $ | 812,732 | $ | 79,510 | $ | 71,284 | $ | 103,246 | $ | 79,177 | ||||||||||||
* Includes undistributed net investment income (loss) of | $ | 4,716 | $ | 19,001 | $ | 27 | $ | 274 | $ | 220 | $ | 492 | ||||||||||||
See accompanying notes
28
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
1. Organization and Significant Accounting Policies
American Beacon Funds (the “Trust”) is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940 (the “Act”), as amended, as a diversified, open-end management investment company. These financial statements and notes to the financial statements relate to the American Beacon Balanced Fund, the American Beacon Large Cap Growth Fund, and the American Beacon Mid-Cap Value Fund (each a “Fund” and collectively, the “Funds”), each a series of the Trust.
American Beacon Advisors, Inc. (the “Manager”), is a wholly-owned subsidiary of Lighthouse Holdings, Inc., and was organized in 1986 to provide business management, advisory, administrative and asset management consulting services to the Trust and other investors.
Class Disclosure
The inception date of the Y Class is March 1, 2010.
Each Fund has multiple classes of shares designed to meet the needs of different groups of investors; however, not all Funds offer all classes. The following table sets forth the differences amongst the classes:
Class: | Offered to: | |
Institutional Class | Investors making an initial investment of $250,000 | |
Y Class | Investors making an initial investment of $100,000 | |
Investor Class | General public and investors investing through an intermediary | |
Advisor Class | Investors investing through an intermediary | |
AMR Class | Investors in the tax-exempt retirement and benefit plans of the Manager, AMR Corporation and its affiliates |
Administrative service fees, service fees and distribution fees vary amongst the classes as described more fully in footnote 2.
Investment income, net capital gains (losses) and all expenses incurred by the Funds are allocated based on the relative net assets of each class, except for service fees and certain other fees and expenses related solely to one class of shares.
Security Valuation
Investments are valued at the close of the New York Stock Exchange (the “Exchange”), normally 4 p.m. ET, each day that the Exchange is open for business. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade.
Debt securities (other than short-term securities) normally are valued on the basis of prices provided by an independent pricing service and may take into account appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. Prices of debt securities may be determined using quotes obtained from brokers.
Investments in mutual funds are valued at the closing net asset value per share of the mutual fund on the day of valuation. Investment grade short-term obligations with 60 days or less to maturity are valued using the amortized cost method, which approximates market value.
Securities for which market prices are not readily available or are not reflective of the fair value of the security, as determined by the Manager, will be priced at fair value following procedures approved by the Board of Trustees (the “Board”).
29
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
Valuation Inputs
Various inputs may be used to determine the value of the Funds’ investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1 — | Quoted prices in active markets for identical securities. | ||
Level 2 — | Prices determined using other significant observable inputs. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others. | ||
Level 3 — | Prices determined using other significant unobservable inputs. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
The Funds’ investments are summarized by level based on the inputs used to determine their values. As of April 30, 2010 the investments were classified as described below: (in thousands)
Balanced Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 545,954 | $ | — | $ | — | $ | 545,954 | ||||||||
Agencies | — | 784 | — | 784 | ||||||||||||
U.S. Treasury Obligations | — | 42,081 | — | 42,081 | ||||||||||||
Corporate Obligations | — | 155,289 | — | 155,289 | ||||||||||||
Municipal Securities | — | 2,436 | — | 2,436 | ||||||||||||
Non-Agency Mortgage Backed Obligations | — | 11,325 | — | 11,325 | ||||||||||||
Asset Backed Securities | — | 9,055 | — | 9,055 | ||||||||||||
U.S. Agency Mortgage Backed Obligations | — | 49,990 | — | 49,990 | ||||||||||||
U.S. Agency Obligations | — | 46,316 | — | 46,316 | ||||||||||||
Short Term Investments | 24,824 | 9,142 | — | 33,966 | ||||||||||||
Total Investments in Securities | $ | 570,778 | $ | 326,418 | $ | — | $ | 897,196 | ||||||||
Futures Contracts | 26,627 | — | — | 26,627 | ||||||||||||
Large Cap Growth Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 73,856 | $ | — | $ | — | $ | 73,856 | ||||||||
Short Term Investments | 4,035 | 543 | — | 4,578 | ||||||||||||
Total Investments in Securities | $ | 77,891 | $ | 543 | $ | — | $ | 78,434 | ||||||||
Futures Contracts | 4,497 | — | — | 4,497 | ||||||||||||
Mid-Cap Value Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 97,109 | $ | — | $ | — | $ | 97,109 | ||||||||
Preferred Stock | 1,014 | — | — | 1,014 | ||||||||||||
Short Term Investments | 4,145 | 809 | — | 4,954 | ||||||||||||
Total Investments in Securities | $ | 102,268 | $ | 809 | $ | — | $ | 103,077 | ||||||||
Futures Contracts | 4,847 | — | — | 4,847 |
Security Transactions and Investment Income
Security transactions are recorded on the trade date of the security purchase or sale. The Funds may purchase securities with delivery or payment to occur at a later date. At the time the Funds enter into a commitment to purchase a security, the transaction is recorded and the value of the security is reflected in the net asset value. The value of the security may vary with market fluctuations.
Dividend income, net of foreign taxes, is recorded on the ex-dividend date except certain dividends from foreign securities which are recorded as soon as the information is available to the Funds. Interest income is earned from settlement date, recorded on the accrual basis, and adjusted, if necessary, for accretion of
30
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
discounts and amortization of premiums. For financial and tax reporting purposes, realized gains and losses are determined on the basis of specific lot identification.
Futures Contracts
Futures contracts are contracts to buy or sell a standard quantity of securities at a specified price on a future date. The Funds may enter into financial futures contracts as a method for keeping assets readily convertible to cash if needed to meet shareholder redemptions or for other needs while maintaining exposure to the stock or bond market, as applicable. The primary risks associated with the use of futures contracts are the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Upon entering into a futures contract, the Fund is required to set aside or deposit with a broker an amount, termed the initial margin, which typically represents 5% of the face value of the futures contract. The Funds reflect this amount on the Schedules of Investments as a U.S. Treasury Bill held as collateral for futures contracts or as a Deposit with broker for futures contracts on the Statements of Assets and Liabilities. Payments to and from the broker, known as variation margin, are required to be made on a daily basis as the price of the futures contract fluctuates. Changes in initial settlement values are accounted for as unrealized appreciation (depreciation) until the contracts are terminated, at which time realized gains and losses are recognized. Futures contracts are valued at the most recent settlement price established eac h day by the exchange on which they are traded.
Balanced
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2010 (in thousands)
Liability | ||||||
Statement of Assets and Liabilities | Derivatives | Fair Value | ||||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* | $ | 470 |
Effect of derivative instruments not accounted for as hedging instruments during the six months ended April 30, 2010 (in thousands)
Statement of Operations | Derivative | Fair Value | ||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 3,641 | |||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | 1,302 |
Large Cap Growth
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2010 (in thousands)
Liability | ||||||
Statement of Assets and Liabilities | Derivatives | Fair Value | ||||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* | $ | (5 | ) |
Effect of derivative instruments not accounted for as hedging instruments during the six months ended April 30, 2010 (in thousands)
Statement of Operations | Derivative | Fair Value | ||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 660 | |||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | 92 |
Mid-Cap Value
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2010 (in thousands)
Liability | ||||||
Statement of Assets and Liabilities | Derivatives | Fair Value | ||||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* | $ | 95 |
Effect of derivative instruments not accounted for as hedging instruments during the six months ended April 30, 2010 (in thousands)
Statement of Operations | Derivative | Fair Value | ||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 1,135 | |||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | 357 |
* | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments footnotes. Only current day’s variation margin is reported within the Statements of Assets and Liabilities. |
31
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
Dividends to Shareholders
Dividends from net investment income of the Funds normally will be declared and paid at least annually. Distributions, if any, of net realized capital gains are generally paid at least annually and recorded on the ex-dividend date.
Commission Recapture
The Funds have established brokerage commission recapture arrangements with certain brokers or dealers. If a Fund’s investment advisor chooses to execute a transaction through a participating broker, the broker rebates a portion of the commission back to the Fund. Any collateral benefit received through participation in the commission recapture program is directed exclusively to the Fund. These amounts are reported with the net realized gains in the Funds’ Statements of Operations.
Allocation of Income, Expenses, Gains and Losses
Income, expenses (other than those attributable to a specific class), gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimated.
Redemption Fees
The AMR Class of the Mid-Cap Value Fund imposes a 2% redemption fee on certain shares held for less than 180 days. The fee is deducted from the redemption proceeds and is intended to offset the trading costs, market impact and other costs associated with short-term trading activity in the Funds. The “first-in, first-out” method is used to determine the holding period. The fee is allocated to all classes of each Fund pro-rata based on their respective net assets.
Other
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liability arising out of the performance of their duties to the Trust. In the normal course of business, the Trust enters into contracts that provide indemnification to the other party or parties against potential costs or liabilities. The Trust’s maximum exposure under these arrangements is dependent on claims that may be made in the future and, therefore, cannot be estimated. The Trust has had no prior claims or losses pursuant to any such agreement.
2. Transactions with Affiliates
Management Agreement
The Trust and the Manager are parties to a Management Agreement that obligates the Manager to provide or oversee the provision of all investment advisory and portfolio management services. Investment assets of the Funds are managed by one or more investment advisors which have entered into separate investment advisory agreements with the Manager. As compensation for performing the duties required under the Management Agreement, the Manager receives from the Funds an annualized fee equal to 0.05% of the average daily net assets plus amounts paid by the Manager to the investment advisors hired by the Manager to
32
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
direct investment activities of the Funds. The Manager is one of the investment advisors of the Balanced Fund and receives an annualized fee of 0.15% on the portion of assets managed by the Manager. Management fees paid during the six months ended April 30, 2010 were as follows (dollars in thousands):
Amounts | Net | |||||||||||||||
Management | Management | paid to Investment | Amounts Retained by | |||||||||||||
Fee Rate | Fee | Advisors | Manager | |||||||||||||
Balanced | 0.175%-0.65 | % | $ | 978 | $ | 765 | $ | 213 | ||||||||
Large Cap Growth | 0.30%-0.60 | % | 193 | 175 | 18 | |||||||||||
Mid-Cap Value | 0.35%-0.90 | % | 269 | 246 | 23 |
Administrative Services Agreement
The Manager and the Trust entered into an Administrative Services Agreement which obligates the Manager to provide or oversee administrative services to the Funds. As compensation for performing the duties required under the Administrative Services Agreement, the Manager receives an annualized fee of 0.30% of the average daily net assets of the Institutional, Y, Investor, and Advisor Classes and 0.05% of the average daily net assets of the AMR Class of each of the Funds.
Distribution Plans
The Trust, except for the Advisor Class of the Funds, has adopted a “defensive” Distribution Plan (the “Plan”) in accordance with Rule 12b-1 under the Act, pursuant to which no fees may be charged to the Funds for distribution purposes. However, the Plan authorizes the management and administrative service fees received by the Manager and the investment advisors hired by the Manager to be used for distribution purposes. Under this Plan, the Trust does not intend to compensate the Manager or any other party, either directly or indirectly, for the distribution of Trust shares.
A separate Distribution Plan (the “Distribution Plan”) has been adopted pursuant to Rule 12b-1 under the Act for the Advisor Class of the Funds. Under the Distribution Plan, as compensation for distribution assistance, the Manager receives an annual fee of 0.25% of the average daily net assets of the Advisor Class. The fee will be payable without regard to whether the amount of the fee is more or less than the actual expenses incurred in a particular month by the Manager for distribution assistance.
Service Plans
The Manager and the Trust entered into Service Plans that obligate the Manager to oversee additional shareholder servicing of the Y, Investor and Advisor Classes. As compensation for performing the duties required under the Service Plans, the Manager receives 0.10% of the average daily net assets of the Y Class, 0.25% of the average daily net assets of the Advisor Class and up to 0.375% of the average daily net assets of the Investor Class of each Fund.
Investment in Affiliated Funds
The Funds may invest in the American Beacon Money Market (the “MM Select Fund”) or US Government Money Market Select Fund (the “USG Select Fund”) (collectively the “Select Funds”). The Funds and the Select Funds have the same investment advisor and therefore, are considered to be affiliated. The Manager serves as investment advisor to the Select Funds and receives from each Select Fund an annualized fee of 0.09% of average daily net assets. During the six months ended April 30, 2010, fees earned by the Manager as a result of the Balanced Fund’s investment in the Select Funds was $2,479.
33
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
Interfund Lending Program
Pursuant to an exemptive order by the Securities Exchange Commission (“SEC”), the Funds, along with other registered investment companies having management contracts with the Manager, may participate in an interfund lending program as a borrower. This program provides an alternative credit facility allowing the Funds to borrow from other participating Funds. During the six months ended April 30, 2010, the Large Cap Growth Fund borrowed from the USG Select Fund on average $1,547,218 for two days at 0.77% with interest charges of $65.
Reimbursement of Expenses
The Manager agreed to reimburse the following Funds to the extent that total annual fund operating expenses exceed the Fund’s expense cap. For the period ended April 30, 2010, the Manager waived or reimbursed expenses as follows:
Expense Cap | ||||||||||||||
11/1/09 | 3/1/10 | Waived or | ||||||||||||
to | to | Reimbursed | ||||||||||||
Fund | Class | 2/28/10 | 4/30/10 | Expenses | ||||||||||
Mid-Cap Value | Institutional | 0.98 | % | 0.98 | % | $ | 1,136 | |||||||
Mid-Cap Value | Y | — | 1.08 | % | — | |||||||||
Mid-Cap Value | Investor | 1.23 | % | 1.23 | % | 6,833 | ||||||||
Mid-Cap Value | Advisor | 1.50 | % | 1.49 | % | 4 |
Expense Reimbursement Plan
The Funds have adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of fees waived or expenses reimbursed for a period of up to three years. However, reimbursement will occur only if the Class’ average net assets have grown or expenses have declined sufficiently to allow reimbursement without causing its expense ratio to exceed the previously agreed upon contractual expense limit. During the six months ended April 30, 2010, the Funds have not recorded a liability for potential reimbursement, due to the current assessment that a reimbursement is unlikely.
3. Federal Income and Excise Taxes
It is the policy of each of the Funds to comply with the requirements of Subchapter M of the Internal Revenue Code and to distribute substantially all net investment income as well as any net realized capital gains on the sale of investments. Therefore, no federal income or excise tax provision is required.
The Funds does not have any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the four year period ended October 31, 2009 remains subject to examination by the Internal Revenue Service. If applicable, the Funds recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statements of Operations.
Dividends are categorized in accordance with income tax regulations which may treat certain transactions differently than U.S. generally accepted accounting principles. Accordingly, the character of distributions and composition of net assets for tax purposes may differ from those reflected in the accompanying financial statements.
The tax character of distributions paid during the six months ended April 30, 2010 and fiscal year ended October 31, 2009 were as follows (in thousands):
34
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
Balanced | Large Cap Growth | Mid-Cap Value | ||||||||||||||||||||||
Six Months | Six Months | Six Months | ||||||||||||||||||||||
Ended | Year Ended | Ended | Year Ended | Ended | Year Ended | |||||||||||||||||||
April 30, | October 31, | April 30, | October 31, | April 30, | October 31, | |||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
Distributions paid from: | ||||||||||||||||||||||||
Ordinary income* | ||||||||||||||||||||||||
Institutional Class | $ | 829 | $ | 1,697 | $ | — | $ | 1 | $ | 15 | $ | 42 | ||||||||||||
Investor Class | 2,602 | 4,916 | — | — | 161 | 285 | ||||||||||||||||||
Advisor Class | 174 | — | — | — | — | — | ||||||||||||||||||
AMR Class | 22,873 | 28,892 | 342 | 836 | 561 | 838 | ||||||||||||||||||
Long-term capital gain | ||||||||||||||||||||||||
Institutional Class | — | — | — | — | — | — | ||||||||||||||||||
Investor Class | — | — | — | — | — | — | ||||||||||||||||||
Advisor Class | — | — | — | — | — | — | ||||||||||||||||||
AMR Class | — | — | — | — | — | — | ||||||||||||||||||
Total distributions paid | $ | 26,478 | $ | 35,505 | $ | 342 | $ | 837 | $ | 737 | $ | 1,165 | ||||||||||||
* | For tax purposes, short-term capital gains are considered ordinary income distributions. |
As of April 30, 2010, the components of distributable earnings on a tax basis were as follows (in thousands):
Large Cap | Mid-Cap | |||||||||||
Balanced | Growth | Value | ||||||||||
Cost basis of investments for federal income tax purposes | $ | 852,772 | $ | 64,286 | $ | 98,150 | ||||||
Unrealized appreciation | 113,700 | 14,739 | 17,303 | |||||||||
Unrealized depreciation | (69,276 | ) | (591 | ) | (4,376 | ) | ||||||
Net unrealized appreciation (depreciation) | 44,424 | 14,148 | 12,927 | |||||||||
Undistributed ordinary income | 5,337 | 28 | 220 | |||||||||
Undistributed long-term gain (loss) | (85,815 | ) | (25,487 | ) | (20,247 | ) | ||||||
Other temporary differences | 480 | (5 | ) | 96 | ||||||||
Distributable earnings (losses) | $ | (35,574 | ) | $ | (11,316 | ) | $ | (7,004 | ) | |||
Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences. The temporary differences between financial reporting and tax-basis reporting of unrealized appreciation/(depreciation) are attributable primarily to the tax deferral of losses from wash sales, the realization for tax purposes of unrealized gains/(losses) on certain derivative instruments, book amortization for premiums, and reclassifications of income from real estate investment securities.
Due to inherent differences in the recognition of income, expenses and realized gains/losses under U.S. generally accepted accounting principles and federal income tax regulations, permanent differences between book and tax reporting have been identified and appropriately reclassified on the Statements of Assets and Liabilities.
Accordingly, the following amounts represent current year permanent differences derived from reclassifications of income from real estate investment securities, foreign currency, book amortization of premium, pay down reclasses, income adjustments associated with contingent payment debt instruments, and dividend reclasses that have been reclassified as of April 30, 2010 (in thousands):
Large Cap | Mid-Cap | |||||||||||
Balanced | Growth | Value | ||||||||||
Paid-in-capital | $ | — | $ | — | $ | (1 | ) | |||||
Undistributed net investment income | 230 | (1 | ) | — | ||||||||
Accumulated net realized gain (loss) | (230 | ) | 1 | 1 | ||||||||
Unrealized appreciation (depreciation) of investments, futures contracts and foreign currency | — | — | — |
35
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
At April 30, 2010 capital loss carry forward positions for federal income tax purposes were as follows (in thousands):
Fund | 2016 | 2017 | Total | |||||||||
Balanced | $ | 60,916 | $ | 24,427 | $ | 85,343 | ||||||
Large Cap Growth | 12,629 | 12,863 | 25,492 | |||||||||
Mid-Cap Value | 11,754 | 8,397 | 20,151 |
The Balanced, Large Cap Growth, and Mid-Cap Value Funds utilized $7,625, $2,424, and $1,624, respectively of net capital loss carryovers for the six months ended April 30, 2010.
4. Investment Transactions
The aggregate cost of purchases and proceeds from sales and maturities of long-term investments during the six months ended April 30, 2010 were as follows (in thousands):
Large | ||||||||||||
Cap | Mid-Cap | |||||||||||
Balanced | Growth | Value | ||||||||||
Purchases (excluding U.S. government securities) | $ | 172,152 | $ | 34,756 | $ | 21,954 | ||||||
Sales and maturities (excluding U.S. government securities) | 152,407 | 36,523 | 14,909 | |||||||||
Purchases of U.S. government securities | 52,236 | — | — | |||||||||
Sales and maturities of U.S. government securities | 40,753 | — | — |
A summary of the Funds’ direct transactions in the Select Funds for the six months ended April 30, 2010 is set forth below (in thousands):
October 31, 2009 | April 30, 2010 | |||||||||||||||||
Affiliate | Shares/Market Value | Purchases | Sales | Shares/Market Value | ||||||||||||||
Balanced | USG Select Fund | $ | 5,000 | — | — | $ | 5,000 |
5. Capital Share Transactions
The tables below summarize the activity in capital shares for each Class of the Funds (shares and dollars in thousands):
Six Months Ended April 30, 2010
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Balanced Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 586 | $ | 7,342 | 4 | $ | 46 | 1,516 | $ | 17,496 | |||||||||||||||
Reinvestment of dividends | 68 | 818 | — | — | 230 | 2,559 | ||||||||||||||||||
Shares redeemed | (384 | ) | (4,752 | ) | — | — | (2,115 | ) | (24,046 | ) | ||||||||||||||
Net increase (decrease) in shares outstanding | 270 | $ | 3,408 | 4 | $ | 46 | (369 | ) | $ | (3,991 | ) | |||||||||||||
Advisor Class | AMR Class | |||||||||||||||
Balanced Fund | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold | 67 | $ | 788 | 1,791 | $ | 21,098 | ||||||||||
Reinvestment of dividends | 15 | 174 | 1,994 | 22,873 | ||||||||||||
Shares redeemed | (123 | ) | (1,451 | ) | (1,680 | ) | (19,901 | ) | ||||||||
Net increase (decrease) in shares outstanding | (41 | ) | $ | (489 | ) | 2,105 | $ | 24,070 | ||||||||
36
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
Institutional Class | Y Class | AMR Class | ||||||||||||||||||||||
Large Cap Growth Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | — | $ | — | — | $ | 1 | 1,998 | $ | 11,075 | |||||||||||||||
Reinvestment of dividends | — | — | — | — | 63 | 342 | ||||||||||||||||||
Shares redeemed | (12 | ) | (66 | ) | — | — | (2,359 | ) | (12,553 | ) | ||||||||||||||
Net increase (decrease) in shares outstanding | (12 | ) | $ | (66 | ) | — | $ | 1 | (298 | ) | $ | (1,136 | ) | |||||||||||
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Mid-Cap Value Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 37 | $ | 310 | — | $ | 1 | 480 | $ | 4,140 | |||||||||||||||
Reinvestment of dividends | 2 | 14 | — | — | 20 | 161 | ||||||||||||||||||
Shares redeemed | (21 | ) | (173 | )* | — | — | * | (194 | ) | (1,616 | )* | |||||||||||||
Net increase in shares outstanding | 18 | $ | 151 | — | $ | 1 | 306 | $ | 2,685 | |||||||||||||||
Advisor Class | AMR Class | |||||||||||||||
Mid-Cap Value Fund | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold | 1 | $ | 9 | 1,440 | $ | 12,524 | ||||||||||
Reinvestment of dividends | — | — | 68 | 561 | ||||||||||||
Shares redeemed | — | — | * | (1,292 | ) | (10,784 | )* | |||||||||
Net increase in shares outstanding | 1 | $ | 9 | 216 | $ | 2,301 | ||||||||||
* | Net of Redemption Fees |
Period Ended October 31, 2009
Institutional Class | Investor Class | Advisor Class | AMR Class | |||||||||||||||||||||||||||||
Balanced Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | 1,198 | $ | 12,097 | 2,427 | $ | 24,255 | 76 | $ | 744 | 5,034 | $ | 51,222 | ||||||||||||||||||||
Reinvestment of dividends | 170 | 1,684 | 517 | 4,771 | — | — | 3,047 | 28,892 | ||||||||||||||||||||||||
Shares redeemed | (2,288 | ) | (23,603 | ) | (4,930 | ) | (47,789 | ) | (261 | ) | (2,590 | ) | (7,155 | ) | (69,947 | ) | ||||||||||||||||
Net increase (decrease) in shares outstanding | (920 | ) | $ | (9,822 | ) | (1,986 | ) | $ | (18,763 | ) | (185 | ) | $ | (1,846 | ) | 926 | $ | 10,167 | ||||||||||||||
Institutional Class | AMR Class | |||||||||||||||
Large Cap Growth Fund | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold | 27 | $ | 121 | 4,528 | $ | 20,441 | ||||||||||
Reinvestment of dividends | — | 1 | 205 | 836 | ||||||||||||
Shares redeemed | (19 | ) | (93 | ) | (3,124 | ) | (13,582 | ) | ||||||||
Net increase in shares outstanding | 8 | $ | 29 | 1,609 | $ | 7,695 | ||||||||||
Institutional Class | Investor Class | Advisor Class | AMR Class | |||||||||||||||||||||||||||||
Mid-Cap Value Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | 39 | $ | 255 | 1,083 | $ | 6,831 | 1 | $ | 5 | 3,018 | $ | 19,761 | ||||||||||||||||||||
Reinvestment of dividends | 7 | 41 | 52 | 284 | — | — | 153 | 838 | ||||||||||||||||||||||||
Shares redeemed | (136 | ) | (792 | )* | (834 | ) | (4,607 | )* | — | — | * | (1,846 | ) | (11,086 | )* | |||||||||||||||||
Net increase (decrease) in shares outstanding | (90 | ) | $ | (496 | ) | 301 | $ | 2,508 | 1 | $ | 5 | 1,325 | $ | 9,513 | ||||||||||||||||||
* | Net of Redemption Fees |
6. Subsequent Events
Management has evaluated the possibility of subsequent events existing in the Funds’ financial statements. Management has determined that there are no material events that would require disclosure in the Funds’ financial statements.
37
American Beacon Balanced Fund
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||||||||||||||||||
Six | Six | |||||||||||||||||||||||||||||||||||||||
Months | Months | |||||||||||||||||||||||||||||||||||||||
Ended | March 1 | Ended | Year Ended October | |||||||||||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | to April | April 30, | 31, | ||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 30, 2010 | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.83 | $ | 10.63 | $ | 16.09 | $ | 15.83 | $ | 15.00 | $ | 14.31 | $ | 12.20 | $ | 10.96 | $ | 9.91 | $ | 15.09 | ||||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment incomeA | 0.17 | 0.43 | 0.47 | 0.50 | 0.39 | 0.36 | 0.00 | 0.13 | 0.30 | 0.41 | ||||||||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 1.15 | 1.25 | (4.70 | ) | 0.90 | 1.54 | 1.11 | 0.60 | 1.07 | 1.23 | (4.39 | ) | ||||||||||||||||||||||||||||
Total income (loss) from investment operations | 1.32 | 1.68 | (4.23 | ) | 1.40 | 1.93 | 1.47 | 0.60 | 1.20 | 1.53 | (3.98 | ) | ||||||||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.34 | ) | (0.48 | ) | (0.44 | ) | (0.42 | ) | (0.38 | ) | (0.31 | ) | — | (0.31 | ) | (0.48 | ) | (0.41 | ) | |||||||||||||||||||||
Distributions from net realized gains on securities | — | — | (0.79 | ) | (0.72 | ) | (0.72 | ) | (0.47 | ) | — | — | — | (0.79 | ) | |||||||||||||||||||||||||
Total distributions | (0.34 | ) | (0.48 | ) | (1.23 | ) | (1.14 | ) | (1.10 | ) | (0.78 | ) | — | (0.31 | ) | (0.48 | ) | (1.20 | ) | |||||||||||||||||||||
Net asset value, end of period | $ | 12.81 | $ | 11.83 | $ | 10.63 | $ | 16.09 | $ | 15.83 | $ | 15.00 | $ | 12.80 | $ | 11.85 | $ | 10.96 | $ | 9.91 | ||||||||||||||||||||
Total return | 11.35 | %B | 16.64 | % | (28.23 | )% | 9.31 | % | 13.60 | % | 10.53 | % | 4.92 | %B | 11.17 | %B | 16.29 | % | (28.39 | )% | ||||||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 35,741 | $ | 29,808 | $ | 36,557 | $ | 51,399 | $ | 22,587 | $ | 14,122 | $ | 46 | $ | 98,250 | $ | 94,915 | $ | 105,473 | ||||||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||||||||||
Expenses, net of waivers | 0.59 | % | 0.60 | % | 0.56 | % | 0.57 | % | 0.59 | % | 0.56 | % | 0.70 | %C | 0.92 | % | 0.89 | % | 0.82 | % | ||||||||||||||||||||
Expenses, before waivers | 0.59 | % | 0.60 | % | 0.56 | % | 0.57 | % | 0.59 | % | 0.56 | % | 0.77 | %C | 0.92 | % | 0.89 | % | 0.82 | % | ||||||||||||||||||||
Net investment income, net of waivers | 2.62 | % | 3.60 | % | 3.37 | % | 2.91 | % | 2.81 | % | 2.45 | % | 1.50 | %C | 2.30 | % | 3.26 | % | 3.12 | % | ||||||||||||||||||||
Net investment income (loss), before waivers | 2.62 | % | 3.60 | % | 3.37 | % | 2.91 | % | 2.81 | % | 2.45 | % | 1.44 | %C | 2.30 | % | 3.26 | % | 3.12 | % | ||||||||||||||||||||
Portfolio turnover rate | 19 | %B | 57 | % | 53 | % | 50 | % | 59 | % | 58 | % | 19 | %B,D | 19 | %B | 57 | % | 53 | % |
A | Through October 31, 2005, net investment income was calculated by subtracting class expenses per share from the Fund’s net investment income per share before class expenses. | |
B | Not annualized. | |
C | Annualized. | |
D | Portfolio turnover rate is for the period from November 1, 2009 through April 30, 2010. | |
E | Portfolio turnover rate is for the period from November 1, 2004 through October 31, 2005. |
38
Advisor Class | ||||||||||||||||||||||||||||||||||||
Six | ||||||||||||||||||||||||||||||||||||
Months | ||||||||||||||||||||||||||||||||||||
Ended | May 31 to | |||||||||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | October 31, | ||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||
$ | 14.91 | $ | 14.20 | $ | 13.62 | $ | 11.35 | $ | 9.77 | $ | 14.95 | $ | 14.83 | $ | 14.16 | $ | 13.96 | |||||||||||||||||||
0.41 | 0.35 | 0.34 | 0.15 | 0.37 | 0.34 | 0.41 | 0.38 | 0.09 | ||||||||||||||||||||||||||||
0.87 | 1.44 | 1.01 | 1.09 | 1.21 | (4.31 | ) | 0.83 | 1.35 | 0.11 | |||||||||||||||||||||||||||
1.28 | 1.79 | 1.35 | 1.24 | 1.58 | (3.97 | ) | 1.24 | 1.73 | 0.20 | |||||||||||||||||||||||||||
(0.38 | ) | (0.36 | ) | (0.30 | ) | (0.29 | ) | — | (0.42 | ) | (0.40 | ) | (0.34 | ) | — | |||||||||||||||||||||
(0.72 | ) | (0.72 | ) | (0.47 | ) | — | — | (0.79 | ) | (0.72 | ) | (0.72 | ) | — | ||||||||||||||||||||||
(1.10 | ) | (1.08 | ) | (0.77 | ) | (0.29 | ) | (1.21 | ) | (1.12 | ) | (1.06 | ) | — | ||||||||||||||||||||||
$ | 15.09 | $ | 14.91 | $ | 14.20 | $ | 12.30 | $ | 11.35 | $ | 9.77 | $ | 14.95 | $ | 14.83 | $ | 14.16 | |||||||||||||||||||
9.06 | % | 13.31 | % | 10.12 | % | 11.11 | %B | 16.17 | % | (28.65 | )% | 8.83 | % | 12.94 | % | 1.43 | %B | |||||||||||||||||||
$ | 202,750 | $ | 111,837 | $ | 86,875 | $ | 6,879 | $ | 6,812 | $ | 7,674 | $ | 9,504 | $ | 1,562 | $ | 1 | |||||||||||||||||||
0.83 | % | 0.85 | % | 0.86 | % | 1.09 | % | 1.09 | % | 1.07 | % | 1.07 | % | 1.22 | % | 1.09 | %C | |||||||||||||||||||
0.83 | % | 0.85 | % | 0.86 | % | 1.09 | % | 1.09 | % | 1.07 | % | 1.07 | % | 1.22 | % | 360.24 | %C | |||||||||||||||||||
2.65 | % | 2.55 | % | 2.14 | % | 2.15 | % | 3.06 | % | 2.86 | % | 2.34 | % | 2.18 | % | 1.52 | %C | |||||||||||||||||||
2.65 | % | 2.55 | % | 2.14 | % | 2.15 | % | 3.06 | % | 2.86 | % | 2.34 | % | 2.17 | % | (357.63 | )%C | |||||||||||||||||||
50 | % | 59 | % | 58 | % | 19 | %B | 57 | % | 53 | % | 50 | % | 59 | % | 58 | %E |
39
American Beacon Balanced Fund
Financial Highlights
(For a share outstanding throughout the period)
AMR Class | ||||||||||||||||||||||||
Six | ||||||||||||||||||||||||
Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
April 30, | Year Ended October 31, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.31 | $ | 10.19 | $ | 15.49 | $ | 15.27 | $ | 14.49 | $ | 13.87 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeA | 0.17 | 0.39 | 0.49 | 0.50 | 0.45 | 0.39 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 1.11 | 1.24 | (4.52 | ) | 0.89 | 1.46 | 1.05 | |||||||||||||||||
Total income (loss) from investment operations | 1.28 | 1.63 | (4.03 | ) | 1.39 | 1.91 | 1.44 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Dividends from net investment income | (0.38 | ) | (0.51 | ) | (0.48 | ) | (0.45 | ) | (0.41 | ) | (0.35 | ) | ||||||||||||
Distributions from net realized gains on securities | — | — | (0.79 | ) | (0.72 | ) | (0.72 | ) | (0.47 | ) | ||||||||||||||
Total distributions | (0.38 | ) | (0.51 | ) | (1.27 | ) | (1.17 | ) | (1.13 | ) | (0.82 | ) | ||||||||||||
Net asset value, end of period | $ | 12.21 | $ | 11.31 | $ | 10.19 | $ | 15.49 | $ | 15.27 | $ | 14.49 | ||||||||||||
Total return | 11.53 | %B | 16.95 | % | (28.08 | )% | 9.59 | % | 13.98 | % | 10.63 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 760,863 | $ | 681,197 | $ | 604,209 | $ | 898,584 | $ | 817,333 | $ | 712,073 | ||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||
Expenses, net of waivers | 0.33 | % | 0.35 | % | 0.31 | % | 0.31 | % | 0.33 | % | 0.33 | % | ||||||||||||
Expenses, before waivers | 0.33 | % | 0.35 | % | 0.31 | % | 0.31 | % | 0.33 | % | 0.33 | % | ||||||||||||
Net investment income, net of waivers | 2.89 | % | 3.75 | % | 3.62 | % | 3.21 | % | 3.08 | % | 2.70 | % | ||||||||||||
Net investment income (loss), before waivers | 2.89 | % | 3.75 | % | 3.62 | % | 3.21 | % | 3.08 | % | 2.70 | % | ||||||||||||
Portfolio turnover rate | 19 | %B | 57 | % | 53 | % | 50 | % | 59 | % | 58 | % |
A | Through October 31, 2005, net investment income was calculated by subtracting class expenses per share from the Fund’s net investment income per share before class expenses. | |
B | Not annualized. | |
C | Annualized. | |
D | Portfolio turnover rate is for the period from November 1, 2009 through April 30, 2010. | |
E | Portfolio turnover rate is for the period from November 1, 2004 through October 31, 2005. |
40
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41
American Beacon Large Cap Growth Fund
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | ||||||||||||||||||||||||
Six | ||||||||||||||||||||||||
Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
April 30, | Year Ended October 31, | |||||||||||||||||||||||
2010 | 2009A | 2008 | 2007 | 2006B | 2005 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 4.97 | $ | 4.49 | $ | 7.67 | $ | 6.89 | $ | 6.18 | $ | 5.82 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.00 | G | 0.03 | 0.05 | 0.04 | 0.04 | 0.04 | |||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 0.72 | 0.50 | (2.97 | ) | 0.77 | 0.70 | 0.37 | |||||||||||||||||
Total income (loss) from investment operations | 0.72 | 0.53 | (2.92 | ) | 0.81 | 0.74 | 0.41 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Dividends from net investment income | (0.01 | ) | (0.05 | ) | (0.04 | ) | (0.03 | ) | (0.03 | ) | (0.05 | ) | ||||||||||||
Distributions from net realized gains on securities | — | — | (0.22 | ) | — | — | — | |||||||||||||||||
Total distributions | (0.01 | ) | (0.05 | ) | (0.26 | ) | (0.03 | ) | (0.03 | ) | (0.05 | ) | ||||||||||||
Net asset value, end of period | $ | 5.68 | $ | 4.97 | $ | 4.49 | $ | 7.67 | $ | 6.89 | $ | 6.18 | ||||||||||||
Total returnF | 14.48 | %C | 12.09 | % | (39.35 | )% | 11.84 | % | 12.04 | % | 7.06 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 80 | $ | 130 | $ | 83 | $ | 119 | $ | 110 | $ | 105 | ||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||
Expenses, net of waivers | 0.90 | % | 0.93 | % | 0.89 | % | 0.90 | % | 0.90 | % | 0.89 | % | ||||||||||||
Expenses, before waivers | 0.90 | % | 0.94 | % | 0.95 | % | 1.06 | % | 0.99 | % | 4.64 | % | ||||||||||||
Net investment income (loss), net of waivers | 0.08 | % | 0.38 | % | 0.74 | % | 0.58 | % | 0.56 | % | (0.18 | )% | ||||||||||||
Net investment income (loss), before waivers | 0.08 | % | 0.36 | % | 0.68 | % | 0.42 | % | 0.48 | % | (3.93 | )% | ||||||||||||
Portfolio turnover rate | 49 | %C | 147 | % | 112 | % | 128 | % | 181 | % | 164 | % |
A | On March 17, 2009, Winslow Capital Management, Inc. assumed management of the Large Cap Growth Fund’s assets previously managed by Goldman Sachs Asset Management, L.P. | |
B | On September 12, 2006, The Renaissance Group, LLC assumed management of the Large Cap Growth Fund’s assets previously managed by J.P. Morgan Investment Management, Inc. | |
C | Not annualized. | |
D | Annualized. | |
E | Portfolio turnover rate is for the period from November 1, 2009 through April 30, 2010. | |
F | May include adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net assets values may differ from the net asset value and returns for shareholder transactions. The total return of the Institutional Class for the year ended 2008 has been restated from (39.48%). | |
G | For purposes of this calculation, the change in undistributed net investment income per share was derived by dividing the change in undistributed net investment income by average shares outstanding for the period. |
42
Y Class | AMR Class | |||||||||||||||||||||||||||
Six | ||||||||||||||||||||||||||||
Months | ||||||||||||||||||||||||||||
March 1 | Ended | |||||||||||||||||||||||||||
to April | April 30, | Year Ended October 31, | ||||||||||||||||||||||||||
30, 2010 | 2010 | 2009A | 2008 | 2007 | 2006B | 2005 | ||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
$ | 5.41 | $ | 5.00 | $ | 4.52 | $ | 7.72 | $ | 6.95 | $ | 6.21 | $ | 5.84 | |||||||||||||||
0.00 | G | 0.01 | 0.04 | 0.07 | 0.06 | 0.05 | 0.06 | |||||||||||||||||||||
0.27 | 0.72 | 0.51 | (2.99 | ) | 0.77 | 0.73 | 0.36 | |||||||||||||||||||||
0.26 | 0.73 | 0.55 | (2.92 | ) | 0.83 | 0.78 | 0.42 | |||||||||||||||||||||
— | (0.02 | ) | (0.07 | ) | (0.06 | ) | (0.06 | ) | (0.04 | ) | (0.05 | ) | ||||||||||||||||
— | — | — | (0.22 | ) | — | — | — | |||||||||||||||||||||
— | (0.02 | ) | (0.07 | ) | (0.28 | ) | (0.06 | ) | (0.04 | ) | (0.05 | ) | ||||||||||||||||
$ | 5.67 | $ | 5.71 | $ | 5.00 | $ | 4.52 | $ | 7.72 | $ | 6.95 | $ | 6.21 | |||||||||||||||
4.81 | %C | 14.70 | %C | 12.46 | % | (39.17 | )% | 12.07 | % | 12.52 | % | 7.22 | % | |||||||||||||||
$ | 1 | $ | 79,429 | $ | 71,154 | $ | 56,976 | $ | 101,698 | $ | 82,042 | $ | 63,183 | |||||||||||||||
1.06 | %D | 0.66 | % | 0.63 | % | 0.59 | % | 0.60 | % | 0.59 | % | 0.64 | % | |||||||||||||||
1.12 | %D | 0.66 | % | 0.63 | % | 0.59 | % | 0.60 | % | 0.59 | % | 0.64 | % | |||||||||||||||
(0.51 | )%D | 0.25 | % | 0.86 | % | 1.05 | % | 0.85 | % | 0.88 | % | 0.98 | % | |||||||||||||||
(0.57 | )%D | 0.25 | % | 0.86 | % | 1.05 | % | 0.85 | % | 0.88 | % | 0.98 | % | |||||||||||||||
49 | %C,E | 49 | %C | 147 | % | 112 | % | 128 | % | 181 | % | 164 | % |
43
American Beacon Mid-Cap Value Fund
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||||||||||
Six | Six | Year | ||||||||||||||||||||||||||||||
Months | November | Months | Ended | |||||||||||||||||||||||||||||
Ended | 30 to | March 1 | Ended | October | ||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | October | to April | April 30, | 31, | |||||||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 31, 2006 | 30, 2010 | 2010 | 2009 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 7.57 | $ | 5.94 | $ | 11.01 | $ | 10.81 | $ | 12.09 | $ | 8.48 | $ | 7.54 | $ | 5.92 | ||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income | 0.04 | 0.10 | 0.16 | 0.12 | 0.21 | 0.01 | 0.03 | 0.07 | ||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 1.85 | 1.65 | (4.31 | ) | 0.41 | 1.25 | 0.92 | 1.83 | 1.66 | |||||||||||||||||||||||
Total income (loss) from investment operations | 1.89 | 1.75 | (4.15 | ) | 0.53 | 1.46 | 0.93 | 1.86 | 1.73 | |||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.05 | ) | (0.12 | ) | (0.16 | ) | (0.07 | ) | (0.16 | ) | — | (0.05 | ) | (0.11 | ) | |||||||||||||||||
Distributions from net realized gains on securities | — | — | (0.76 | ) | (0.26 | ) | (2.58 | ) | — | — | — | |||||||||||||||||||||
Total distributions | (0.05 | ) | (0.12 | ) | (0.92 | ) | (0.33 | ) | (2.74 | ) | — | (0.05 | ) | (0.11 | ) | |||||||||||||||||
Redemption fees added to beneficial interestsB | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||
Net asset value, end of period | $ | 9.41 | $ | 7.57 | $ | 5.94 | $ | 11.01 | $ | 10.81 | $ | 9.41 | $ | 9.35 | $ | 7.54 | ||||||||||||||||
Total return C | 25.05 | %D | 30.24 | % | (40.86 | )% | 4.97 | % | 15.19 | %D | 10.97 | %D | 24.77 | %D | 29.93 | % | ||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 2,896 | $ | 2,197 | $ | 2,256 | $ | 6,047 | $ | 3,396 | $ | 1 | $ | 31,853 | $ | 23,369 | ||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||
Expenses, net of waivers | 0.97 | % | 0.98 | % | 0.98 | % | 0.92 | % | 1.19 | %E | 1.10 | %E | 1.22 | % | 1.23 | % | ||||||||||||||||
Expenses, before waivers | 1.06 | % | 1.13 | % | 1.16 | % | 1.09 | % | 1.19 | %E | 1.27 | %E | 1.27 | % | 1.34 | % | ||||||||||||||||
Net investment income, net of waivers | 0.98 | % | 1.29 | % | 1.51 | % | 1.22 | % | 1.11 | %E | 0.90 | %E | 0.73 | % | 0.98 | % | ||||||||||||||||
Net investment income, before waivers | 0.89 | % | 1.14 | % | 1.33 | % | 1.05 | % | 1.11 | %E | 0.72 | %E | 0.68 | % | 0.87 | % | ||||||||||||||||
Portfolio turnover rate | 18 | %D | 42 | % | 28 | % | 35 | % | 42 | %F | 18 | %D,G | 18 | %D | 42 | % |
A | On November 30, 2005, the Mid-Cap Value Fund’s Institutional Class of shares was renamed the AMR Class and the Fund began offering a new class of shares known as the Institutional Class. | |
B | Amounts represent less than $0.01 per share. | |
C | May include adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. For the Institutional Class for the years and period then ended 2008, 2007 and 2006, the total returns have been restated from (40.96%), 4.87%, and 15.30%, respectively. For the Investor Class for the year ended 2008, the total return has been restated from (41.14%). For the Advisor Class for the years and period then ended 2008 and 2007, the total returns have been restated from (41.24%) and (6.65%), respectively. For the AMR Class for the years ended 2008 and 2007, the total returns have been restated from (40.87 %) and 5.19%, respectively. | |
D | Not annualized. | |
E | Annualized. | |
F | Portfolio turnover rate is for the period from November 1, 2005 through October 31, 2006. | |
G | Portfolio turnover rate is for the period from November 1, 2009 through April 30, 2010. | |
H | Portfolio turnover rate is for the period from November 1, 2006 through October 31, 2007. |
44
Advisor Class | AMR Class (formerly Institutional Class prior to December 1, 2005)A | |||||||||||||||||||||||||||||||||||||||||||||||||||
Six | Six | |||||||||||||||||||||||||||||||||||||||||||||||||||
February | Months | June | Months | |||||||||||||||||||||||||||||||||||||||||||||||||
28 to | Ended | Year Ended October | 29 to | Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
October | April 30, | 31, | October | April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2008 | 2007 | 31, 2006 | 2010 | 2009 | 2008 | 31, 2007 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 10.96 | $ | 10.80 | $ | 9.80 | $ | 7.49 | $ | 5.87 | $ | 10.94 | $ | 11.73 | $ | 7.59 | $ | 5.97 | $ | 11.07 | $ | 10.87 | $ | 11.72 | $ | 10.27 | |||||||||||||||||||||||||||
0.14 | 0.10 | 0.01 | 0.05 | 0.15 | 0.10 | 0.01 | 0.05 | 0.07 | 0.18 | 0.18 | 0.12 | 0.13 | ||||||||||||||||||||||||||||||||||||||||
(4.31 | ) | 0.40 | 0.99 | 1.80 | 1.60 | (4.27 | ) | (0.80 | ) | 1.84 | 1.70 | (4.35 | ) | 0.36 | 1.75 | 1.37 | ||||||||||||||||||||||||||||||||||||
(4.17 | ) | 0.50 | 1.00 | 1.85 | 1.75 | (4.17 | ) | (0.79 | ) | 1.89 | 1.77 | (4.17 | ) | 0.54 | 1.87 | 1.50 | ||||||||||||||||||||||||||||||||||||
(0.11 | ) | (0.08 | ) | — | (0.05 | ) | (0.13 | ) | (0.14 | ) | — | (0.08 | ) | (0.15 | ) | (0.17 | ) | (0.08 | ) | (0.14 | ) | (0.05 | ) | |||||||||||||||||||||||||||||
(0.76 | ) | (0.26 | ) | — | — | — | (0.76 | ) | — | — | — | (0.76 | ) | (0.26 | ) | (2.58 | ) | — | ||||||||||||||||||||||||||||||||||
(0.87 | ) | (0.34 | ) | — | (0.05 | ) | (0.13 | ) | (0.90 | ) | — | (0.08 | ) | (0.15 | ) | (0.93 | ) | (0.34 | ) | (2.72 | ) | (0.05 | ) | |||||||||||||||||||||||||||||
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||||||||||||||||
$ | 5.92 | $ | 10.96 | $ | 10.80 | $ | 9.29 | $ | 7.49 | $ | 5.87 | $ | 10.94 | $ | 9.40 | $ | 7.59 | $ | 5.97 | $ | 11.07 | $ | 10.87 | $ | 11.72 | |||||||||||||||||||||||||||
(41.04 | )% | 4.68 | % | 10.20 | %D | 24.82 | %D | 30.64 | % | (41.28 | )% | (6.73 | )%D | 25.01 | %D | 30.56 | % | (40.82 | )% | 5.09 | % | 19.16 | % | 14.63 | % | |||||||||||||||||||||||||||
$ | 16,550 | $ | 43,158 | $ | 27,240 | $ | 18 | $ | 7 | $ | 1 | $ | 1 | $ | 68,478 | $ | 53,604 | $ | 34,253 | $ | 78,794 | $ | 66,290 | $ | 44,342 | |||||||||||||||||||||||||||
1.23 | % | 1.23 | % | 1.49 | %E | 1.45 | % | 1.50 | % | 1.50 | % | 1.50 | %E | 0.77 | % | 0.83 | % | 0.82 | % | 0.75 | % | 0.97 | % | 1.01 | % | |||||||||||||||||||||||||||
1.32 | % | 1.26 | % | 1.61 | %E | 1.53 | % | 1.58 | % | 2.04 | % | 1.80 | %E | 0.77 | % | 0.82 | % | 0.82 | % | 0.75 | % | 0.92 | % | 1.02 | % | |||||||||||||||||||||||||||
1.27 | % | 0.93 | % | 0.57 | %E | 0.48 | % | 0.22 | % | 1.02 | % | 0.32 | %E | 1.18 | % | 1.38 | % | 1.68 | % | 1.41 | % | 1.38 | % | 0.92 | % | |||||||||||||||||||||||||||
1.18 | % | 0.90 | % | 0.44 | %E | 0.40 | % | 0.14 | % | 0.48 | % | 0.02 | %E | 1.18 | % | 1.38 | % | 1.68 | % | 1.40 | % | 1.42 | % | 0.91 | % | |||||||||||||||||||||||||||
28 | % | 35 | % | 42 | %F | 18 | %D | 42 | % | 28 | % | 35 | %H | 18 | %D | 42 | % | 28 | % | 35 | % | 42 | % | 298 | % |
45
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Delivery of Documents
To reduce expenses, your financial institution may mail only one copy of the Prospectus, Annual Report and Semi-Annual Report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please contact your financial institution. Delivery of individual copies will commence thirty days after receiving your request.
If you invest in the Fund through a financial institution, you may be able to receive the Fund’s regulatory mailings, such as the Prospectus, Annual Report and Semi-Annual Report, by e-mail. If you are interested in this option, please go to www.icsdelivery.com and search for your financial institution’s name or contact your financial institution directly.
To obtain more information about the Fund:
![]() | ![]() | |
By E-mail: | On the Internet: | |
american_beacon.funds@ambeacon.com | Visit our website at www.americanbeaconfunds.com | |
![]() | ![]() | |
By Telephone: | By Mail: | |
Institutional, Y, Investor, and Advisor Classes | American Beacon Funds | |
Call (800) 658-5811 | P.O. Box 219643 | |
AMR ClassSM | Kansas City, MO 64121-9643 | |
Call (800) 345-2345 |
Availability of Quarterly Portfolio Schedules | Availability of Proxy Voting Policy and Records | |
In addition to the Schedule of Investments provided in each semi-annual and annual report, the Fund files a complete schedule of its portfolio holdings with the Securities and Exchange Commission (“SEC”) on Form N-Q as of the first and third fiscal quarters. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room, 450 Fifth Street, NW, Washington, DC 20549. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330. A complete schedule of the Fund’s portfolio holdings is also available on the Funds’ website (www.americanbeaconfunds.com) approximately thirty days after the end of each month. | A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Fund’s Statement of Additional Information, is available free of charge on the Fund’s website (www.americanbeaconfunds.com) and by calling 1-800-967-9009 or by accessing the SEC’s website at www.sec.gov. The Fund’s proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Fund’s Forms N-PX are available on the SEC’s website at www.sec.gov. The Fund’s proxy voting record may also be obtained by calling 1-800-967-9009. |
Fund Service Providers:
Custodian State Street Bank and Trust Boston, Massachusetts | Transfer Agent Boston Financial Data Services Kansas City, Missouri | Independent Registered Public Accounting Firm ernst & young llp Dallas, Texas | Distributor Foreside Fund Services, LLC Portland, Maine |
This report is prepared for shareholders of the American Beacon Funds and may be distributed to others only if preceded or accompanied by a current prospectus.
American Beacon Funds, American Beacon Balanced Fund, American Beacon Large Cap Growth Fund, and American Beacon Mid-Cap Value Fund are service marks of American Beacon Advisors, Inc.
SAR 04/10
00074813
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About American Beacon Advisors
Since 1986, American Beacon Advisors has offered a variety of products and investment advisory services to numerous institutional and retail clients, including a variety of mutual funds, corporate cash management, and separate account management.
Our clients include defined benefit plans, defined contribution plans, foundations, endowments, corporations, financial planners, and other institutional investors. With American Beacon Advisors, you can put the experience of a multi-billion dollar asset management firm to work for your company.
Contents
Message from American Beacon | 1 | |||
Market and Performance Overviews | 2-10 | |||
American Beacon Schedules of Investments | ||||
13 | ||||
22 | ||||
Internediate Bond Fund | 29 | |||
40 |
Additional Information | Back Cover |
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. 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. The four highest Moody’s ratings for long-term obligations (or issuers thereof) are Aaa, Aa, A and Baa. Obligations rated Aaa are judged to be of the highest quality, with minimal credit risk. Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. Obligations rated A are considered upper-medium g rade and are subject to low credit risk. Obligations rated Baa are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics. Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. |
Any opinions herein, including forecasts, reflect our judgment as of the end of the reporting period and are subject to change. Each advisor’s strategies and the Fund’s portfolio composition will change depending on economic and market conditions. This report is not a complete analysis of market conditions and therefore, should not be relied upon as investment advice. Although economic and market information has been compiled from reliable sources, American Beacon Advisors, Inc. makes no representation as to the completeness or accuracy of the statements contained herein. |
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Fellow Shareholders,
Over the past six months, one universal theme seems to have emerged: while sudden and significant volatility may characterize the new economic world order, it doesn’t mean investors can’t benefit. Opportunity abounds for those who know how to capitalize on it.
Fortunately, this theme also underlies our investment philosophy at American Beacon:
With portfolios invested for the new economic reality—and conservatively managed for the longer term—we believe investors are better positioned to ride out the inevitable economic storms, whenever and wherever they occur.
It’s a philosophy that has served our shareholders well. It also explains how, in the face of continued weakness in the U.S. job and housing markets and mounting sovereign debt worries in Europe, our bond funds were able to produce positive returns.
For the six months ended April 30, 2010, the American Beacon High Yield Bond Fund (Institutional Class) returned 10.48%. The American Beacon Retirement Income & Appreciation Fund (Investor Class) generated 3.30%. The American Beacon Intermediate Bond Fund (Institutional Class) rose 2.31% while the American Beacon Short-Term Bond Fund (Institutional Class) generated a positive 1.63% return.
As global volatility has become the new norm, our focus at American Beacon remains trained on anticipating opportunities and meeting the challenges investors face today and will likely face tomorrow. This is what drives the composition of our fund line-up and the development of our new offerings in the last year.
It’s also a reflection of our commitment to you, a commitment we summarize as: Oversight 360°. Ours is a continuous commitment to cast a watchful and analytical eye over all the factors that influence our fellow shareholders’ investments.
As you review the enclosed market overview, portfolio listings, and detailed financial data, please know that we welcome the opportunity to serve your financial needs. To obtain further details about the American Beacon Funds family or to access your account information, please visit our website at www.americanbeaconfunds.com.
Thank you for your continued investment in the American Beacon Funds and know that we remain dedicated to offering you and your advisor the level of service and broad range of well-managed investment products you’ve come to expect from us.
Sincerely,
Sincerely, | ||
![]() | ||
Gene L. Needles, Jr. | ||
President | ||
American Beacon Funds |
1
Domestic Bond Market Overview
April 30, 2010 (Unaudited)
During the six months ended April 30, 2010, the domestic bond market continued on the path of recovery that it began in early 2009. All of the credit sectors in the Barclays Aggregate Index outperformed treasuries as investors persisted in their search for yield. Still, the treasury sector managed to produce positive returns, but it underperformed the other sectors as the markets remained focused on the large U.S. budget deficits and escalating U.S. Treasury issuance.
The corporate bond market performed well as credit spreads tightened during the period, though they did so at a slower pace than in early 2009. Corporate issuers benefitted from the stabilizing economy and improving credit fundamentals, they also gained from the lack of attractive alternatives for investors. As the U.S. Treasury Department flooded the market with new securities and the Federal Reserve Bank purchased the bulk of new mortgage securities, investors focused on searching for other credit sectors for relative value.
Inflation concerns arose periodically throughout the reporting period, but with the unemployment rate hovering near the 10% level, and a moribund housing market, inflation fears have not yet taken hold.
Concerns regarding the potential impact from the tenuous situation in Europe also became a factor in the later part of the reporting period. Several smaller countries in the European Union are facing large debt balances and budget deficits resulting from stimulus spending and weak economies. These fiscal imbalances have attracted the attention of investors who are demanding a response. Despite the media focus and concerns, as of April 30, 2010, investors appeared hopeful the situation would not spread to other countries and regions. The European volatility lead to a rise in the U.S. dollar (versus the euro) and to a flight to quality, which boosted U.S. Treasury securities prices.
Also during the reporting period, Congress turned its attention away from stabilizing the economy to berating the banking sector. With credit trends finally improving, bankers faced a new challenge—defending their business models from politicians and regulators. The securities markets took the ensuing headlines in stride, but the nature of any reform that might result remains a point of unease for investors.
Overall, the bond market performed well throughout the reporting period as the economy continued to improve and investors continued to search for value. The credit sectors recovered most of the ground they lost during the financial crisis. A sense of normalcy returned, but investors were reminded of the still tenuous state of the global economy and the interdependence of the global capital markets as the news of endangered sovereign debt in Europe’s peripheral nations spread.
2
High Yield Bond Market Overview
April, 30 2010 (Unaudited)
During the six-month period ending April 30, 2010, the high yield market continued the recovery it began in late 2008 as the JPMorgan Global High-Yield Index returned 11.8%. Spreads were much tighter at the beginning of the reporting period than they were during the height of the financial crisis, but were still above historical average levels. Accordingly, as signs of fundamental economic improvement became more pronounced throughout the six-month period, spreads on high yield bonds continued to tighten. The exception occurred during a brief period of weakness in January and February when Greece’s debt problems caused a temporary investor aversion to most risky asset classes, including high yield corporate bonds. However, that weakness was short-lived, and market spreads conti nued to tighten through the end of the period. The high yield market ended the period with spreads just inside 6%, tighter than the 7.5% at which they started, but roughly in-line with the longer-term historical average.
Spreads were also aided by the fact that earnings continued to improve throughout the period. Many bond issuers posted significant year-over-year gains during the fourth quarter of 2009 and into the first quarter of 2010. The improved earnings, combined with generally robust capital markets, enabled high yield borrowers to issue debt to refinance shorter-term maturities and to replace bank loans that had troublesome covenants. As a result, new issuance was heavy, but strong demand was able to absorb the supply as investors searching for yield or seeking an alternative to equities continued to pour money into the high yield corporate market throughout the reporting period. Consequently, the favorable technical environment, combined with the improved fundamental economic outlook, generated a double-digit total return for the high yield asse t class.
3
Performance Overview
American Beacon High Yield Bond FundSM
April 30, 2010 (Unaudited)
The Institutional Class of the High Yield Bond Fund returned 10.48% for the six months ended April 30, 2010. The Fund underperformed the JPMorgan Global High-Yield Index (“Index”) return of 11.81% and the Lipper High Current Yield Funds Index return of 11.52% for the period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/10 | ||||||||||||||||
Since | ||||||||||||||||
Incep. | ||||||||||||||||
6 Months* | 1 Year | 5 Years | (12/29/00) | |||||||||||||
Institutional Class(1,6) | 10.48 | % | 38.26 | % | 6.13 | % | 7.64 | % | ||||||||
Y Class (1,2,6) | 10.47 | % | 38.26 | % | 6.13 | % | 7.64 | % | ||||||||
Investor Class(1,3,6) | 10.34 | % | 37.92 | % | 5.87 | % | 7.38 | % | ||||||||
AMR Class (1,4,6) | 10.61 | % | 38.60 | % | 6.27 | % | 7.72 | % | ||||||||
JPMorgan GlobaL High-Yield Index(5) | 11.81 | % | 44.76 | % | 8.48 | % | 9.11 | % | ||||||||
Lipper High Current Yield Funds Index(5) | 11.52 | % | 40.82 | % | 6.23 | % | 6.34 | % |
* | Not annualized | |
1. | Performance shown is historical and may not be indicative of future returns. Please note that recent market performance has helped to produce short-term returns that are not typical and may not continue in the future. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. A portion of the fees charged to the Institutional Class of the Fund was waived through 2004. Performance prior to waiving fees was lower than the actual returns shown for periods through 2004. | |
2. | Fund performance for the six month, one-year, five-year, and since inception period represents the total returns achieved by the Institutional Class from 12/29/00 up to 3/1/10, the inception date of the Y Class, and the returns of the Y Class since its inception. Expenses of the Y Class are higher than those of the Institutional Class. As a result, total returns shown may be higher than they would have been had the Y Class been in existence since 12/29/00. | |
3. | Fund performance for the since inception period represents the total returns achieved by the Institutional Class from 12/29/00 up to 3/1/02, the inception date of the Investor Class, and the returns of the Investor Class since its inception. Expenses of the Investor Class are higher than those of the Institutional Class. As a result, total returns shown may be higher than they would have been had the Investor Class been in existence since 12/29/00. | |
4. | Fund performance for the five-year and since inception periods represents the total returns achieved by the Institutional Class from 12/29/00 up to 9/4/07, the inception date of the AMR Class, and the returns of the AMR Class since its inception. Expenses of the AMR Class are lower than those of the Institutional Class. As a result, total returns shown may be lower than they would have been had the AMR Class been in existence since 12/29/00. | |
5. | The JPMorgan Global High-Yield Index (“JPMorgan Index”) is an unmanaged index of fixed income securities with a maximum credit rating of BB+ or Ba1. Issues must be publicly registered or issued under Rule 144A under the Securities Act of 1933, with a minimum issue size of $75 million (par amount). A maximum of two issues per issuer are included in the JPMorgan Index. Convertible bonds, preferred stock, and floating-rate bonds are excluded from the JPMorgan Index. The Lipper High Current Yield Funds Index tracks the results of the 30 largest mutual funds in the Lipper High Current Yield Funds category. Lipper is an independent mutual fund research and ranking service. One cannot directly invest in an index. | |
6. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, and AMR Class shares was 0.80%, 0.90%, 1.02%, and 0.54%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report. |
The Fund underperformed the Index over the six-month period due to the Fund’s cash balances returning less than the Index, as well as issue selection and allocation from a sector and credit quality perspective.
From a sector standpoint, issue selections in the Finance, Cable/Media, and Energy sectors contributed to the relative underperformance, despite positive contribution from selections in the Manufacturing and Utility sectors.
From a sector allocation perspective, the Fund benefited from overweighting the Cable/Media sector (up 13.5%), but not enough to compensate for value lost through underweighting the Finance sector (up 18.1%) and overweighting the Other Corporate sector (up 5.1%).
From a credit quality perspective, issue selections in the CCC and BB-rated credit groups detracted from performance.
From a credit quality allocation perspective, underweighting the CC-rated credit group contributed to the Fund’s relative underperformance, while overweighting the CCC-rated group and underweighting the BB-rated group contributed positively for the period.
The sub-advisors’ “bottom-up”, research intensive investment process, which focuses on companies with strong cash flow and fundamental credit strength, remains in place.
4
Performance Overview
American Beacon High Yield Bond FundSM
April 30, 2010 (Unaudited)
Top Ten Holdings
% of | ||||
Net Assets | ||||
HCA, Inc., 9.625%, Due 11/15/2016 | 1.3 | % | ||
Ford Motor Credit Co. LLC, 7.500%, Due 8/1/2012 | 1.1 | % | ||
Harrah’s Operating Co., Inc., 11.250%, Due 6/1/2017 | 1.1 | % | ||
Intelsat Jackson Holdings Ltd., 11.250%, Due 6/15/2016 | 1.0 | % | ||
MacDermid, Inc., 9.500%, Due 4/15/2017 | 1.0 | % | ||
Wind Acquisition Finance S.A., 10.750%, Due 12/1/2015 | 0.9 | % | ||
JBS USA LLC, 11.625%, Due 5/14/2011 | 0.9 | % | ||
CCH II Holdings LLC, 13.500%, Due 11/30/2016 | 0.9 | % | ||
NewPage Corp., 11.375%, Due 12/31/2014 | 0.9 | % | ||
Ally Financial, Inc., 6.875%, Due 8/28/2012 | 0.8 | % |
Fixed Income Sector Allocation
% of | ||||
Fixed Income | ||||
Corporate | 99.2 | % | ||
Convertibles | 0.5 | % | ||
Asset-Backed | 0.3 | % |
Equity Sector Allocation
% of | ||||
Equities | ||||
Communications | 74.1 | % | ||
Finance | 25.9 | % |
5
Performance Overview
American Beacon Retirement Income and Appreciation FundSM
April 30, 2010 (Unaudited)
The Investor Class of the Retirement Income and Appreciation Fund returned 3.30% for the six months ended April 30, 2010. Its benchmark, a blend of 75% Barclays Capital Aggregate and 25% BofA Merrill Lynch All U.S. Convertibles Index, returned 5.32%. The Fund’s peer group, the Lipper Intermediate Investment Grade Index, returned 4.84% for the same period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/10 | ||||||||||||||||
Since | ||||||||||||||||
Incep. | ||||||||||||||||
6 Months* | 1 Year | 5 Years | (7/1/03) | |||||||||||||
Investor Class(1,5) | 3.30 | % | 14.01 | % | 5.39 | % | 4.65 | % | ||||||||
Y Class (1,2,5) | 3.27 | % | 13.97 | % | 5.38 | % | 4.65 | % | ||||||||
Enhanced Income Composite Index(4) | 5.89 | % | 16.28 | % | 5.67 | % | 4.97 | % | ||||||||
Barclays Capital Aggregrate Index (3) | 2.54 | % | 8.30 | % | 5.38 | % | 4.71 | % | ||||||||
BofA Merrill Lynch All U.S.Convertibles Index (3) | 16.28 | % | 43.14 | % | 5.97 | % | 6.17 | % | ||||||||
Lipper Intermediate Investment Grade Index (3) | 4.84 | % | 16.52 | % | 4.90 | % | 4.40 | % |
* | Not annualized | |
1. | Performance shown is historical and may not be indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. | |
2. | Fund performance for the six month, one-year, five-year, and since inception period represents the total returns achieved by the Investor Class from 7/1/03 up to 3/1/10, the inception date of the Y Class, and the returns of the Y Class since its inception. Expenses of the Y Class are lower than those of the Investor Class. As a result, total returns shown may be lower than they would have been had the Y Class been in existence since 7/1/03. | |
3. | The Barclays Capital Aggregate Index represents returns of the Barclays Capital Gov./Credit Intermediate Index (“Intermediate Index”) up to October 31, 2006 and the Barclays Capital Aggregate Index (“Aggregate Index”) thereafter. The Intermediate Index is an unmanaged index of investment grade corporate and government debt issues with maturities between one and ten years. The Aggregate Index is a market value weighted index of government, corporate, mortgage-backed and asset-backed fixed-rate debt securities of all maturities. The BofA Merrill Lynch All U.S. Convertibles Index is an unmanaged index of domestic securities of all quality grades that are convertible into U.S. dollar-denominated common stock, ADRs or cash equivalents. The Lipper Intermediate Investment Grade Index tracks the results of the 30 largest mutual funds in the Lipper Intermediate Investment Grade category. Lipper is an independent mutual fund research and ranking service. One cannot directly invest in an index. | |
4. | To reflect the Fund’s allocation of its assets between investment grade fixed-income securities and convertible securities, the returns of the Barclays Capital Aggregate Index and the BofA Merrill Lynch All U.S. Convertibles Index have been combined in a 75%/25% proportion. | |
5. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Investor and Y Class shares was 1.02% and 0.77%, respectively. The expense ratio above may vary from the expense ratio presented in other sections of this report that is based on expenses incurred during the period covered by this report. |
The Fund’s assets have been allocated approximately 75% to American Beacon Advisors, Inc. (the “Manager”) which invests primarily in income producing, short- and intermediate-term investment grade bonds and 25% to a sub-advisor which invests in securities including convertible bonds, convertible preferreds, high yield bonds, and equities in order to try to enhance the return of the overall Fund.
During the six-month period, the investment grade bond portion of the Fund returned 2.6% before expenses slightly outperforming the 2.5% return for the Barclays Capital Aggregate Index. This portion of the Fund benefited from a two times overweighting in the Corporate sector, which added to relative performance. The Fund’s selection in Corporate and Asset-Backed securities negatively impacted returns.
The remaining portion of the Fund, managed by the Fund’s sub-advisor, returned 7.8% before expenses. These results trailed the 16.3% return of the BofA Merrill Lynch All U.S. Convertibles Index. This portion of the Fund’s investment in higher quality securities, relative to its benchmark, detracted from performance during the period. Broadly speaking, the most speculative, lower quality convertible issues performed better in the period. The sub-advisor’s portion of the portfolio was invested in names with better balance sheets, lower debt levels, and higher cash flows. This portion of the portfolio was also hurt by an overweighting in the Information Technology and Energy sectors.
The Manager and the Fund’s sub-advisor remain focused on the Fund’s investment objectives of generating income and capital appreciation.
6
Performance Overview
American Beacon Retirement Income and Appreciation FundSM
April 30, 2010 (Unaudited)
Top Ten Holdings
% of | ||||
Net Assets | ||||
Federal Home Loan Mortgage Corporation, Pool # G08079, 5.000%, Due 9/1/2035 | 1.6 | % | ||
JPMorgan Chase & Co., 3.700%, Due 1/20/2015 | 1.3 | % | ||
Federal Farm Credit Bank, 3.000%, Due 9/22/2014 | 1.2 | % | ||
Federal Home Loan Mortgage Corporation, Pool # A73703, 5.000%, Due 3/1/2038 | 1.1 | % | ||
Federal National Mortgage Association, Pool # 745418, 5.500%, Due 4/1/2036 | 1.0 | % | ||
American Express Credit Account Master Trust, 5.350%, Due 1/15/2014 | 0.9 | % | ||
HSBC Finance Corp., 5.250%, Due 1/14/2011 | 0.9 | % | ||
Government National Mortgage Association, Pool # 781589, 5.500%, Due 4/15/2033 | 0.8 | % | ||
EMC Corp., 1.750%, Due 12/1/2013 | 0.8 | % | ||
General Electric Capital Corp., 0.495%, Due 1/8/2016 | 0.8 | % |
Fixed-Income Sector Allocation
% of | ||||
Fixed Income | ||||
Corporate Bonds | 40.9 | % | ||
Treasury | 20.5 | % | ||
Mortgage-Backed | 16.6 | % | ||
Convertible Bonds | 13.5 | % | ||
Asset-Backed | 6.0 | % | ||
Agency | 2.0 | % | ||
Municipal/Other Governments | 0.5 | % |
Equity Sector Allocation
% of | ||||
Equities | ||||
Financials | 23.4 | % | ||
Energy | 22.9 | % | ||
Health Care | 15.7 | % | ||
Information Technology | 13.1 | % | ||
Industrials | 9.2 | % | ||
Consumer Discretionary | 7.9 | % | ||
Consumer Staples | 7.8 | % |
7
Performance Overview
American Beacon Intermediate Bond FundSM
April 30, 2010 (Unaudited)
The Institutional Class of the Intermediate Bond Fund returned 2.31% for the six months ended April 30, 2010, trailing the Barclays Capital Aggregate Index (“Index”) return of 2.54% and the Lipper Intermediate Investment Grade Debt Funds Index return of 4.84% for the same period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/10 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,5) | 2.31 | % | 9.48 | % | 5.69 | % | 6.42 | % | ||||||||
Y Class (1,2,5) | 2.29 | % | 9.46 | % | 5.68 | % | 6.41 | % | ||||||||
Investor Class (1,3,5) | 2.03 | % | 8.85 | % | 5.55 | % | 6.35 | % | ||||||||
Barclays Capital Agg. Index (4) | 2.54 | % | 8.30 | % | 5.38 | % | 6.43 | % | ||||||||
Lipper Intermediate Inv. Grade Index (4) | 4.84 | % | 16.52 | % | 4.90 | % | 6.05 | % |
* | Not annualized | |
1. | Performance shown is historical and may not be indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. Performance shown reflects the Fund’s receipt in December 2006 and March 2008 of class action proceeds that were related to investment activity in 2002. The Fund’s performance was higher than it would have been absent recei pt of the settlement proceeds. | |
2. | Fund performance for the six month, one-year, five-year, and ten-year period represents the total returns achieved by the Institutional Class from 4/30/00 up to 3/1/10, the inception date of the Y Class, and the returns of the Y Class since its inception. Expenses of the Y Class are higher than those of the Institutional Class. As a result, total returns shown may be higher than they would have been had the Y Class been in existence since 4/30/00. | |
3. | Fund performance represents the total returns achieved by the Institutional Class up to 3/2/09, the inception date of the Investor Class, and the returns of the Investor Class since its inception. Expenses of the Investor Class are higher than those of the Institutional Class. As a result, total returns shown may be higher than they would have been had the Investor Class been in existence since 4/30/00. | |
4. | The Barclays Capital Aggregate Index is a market value weighted index of government, corporate, mortgage-backed and asset-backed fixed-rate debt securities of all maturities. The Lipper Intermediate Investment Grade Index tracks the results of the 30 largest mutual funds in the Lipper Intermediate Investment Grade category. Lipper is an independent mutual fund research and ranking service. One cannot directly invest in an index. | |
5. | The total annual Fund operating expense ratios set forth in the most recent Fund prospectus for the Institutional, Y, and Investor Class shares was 0.33%, 0.43%, and 1.23%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that is based on expenses incurred during the period covered by this report. |
Prior to the impact of expenses, the Fund outperformed the Index entirely due to sector allocation as security selection detracted value relative to the Index.
The Fund’s two times overweighting in the Corporate sector contributed most to relative returns from a sector allocation perspective. A two times underweighting in U.S. Treasuries also added value. From a security selection standpoint, the Fund’s underperformance was primarily due to poor selection among Corporates and Commercial Mortgage-Backed securities.
The average duration of the Fund’s portfolio was slightly shorter than the Index over the course of the six months, with a slightly higher credit quality which detracted value relative to the Index.
The Fund’s investment managers remain focused on a conservative approach toward investing in the bond market and on issuer-specific opportunities.
Top Ten Holdings
% of | ||||
Net Assets | ||||
Federal Home Loan Mortgage Corporation, Pool # G08269, 5.500%, Due 5/1/2038 | 1.4 | % | ||
Federal Home Loan Mortgage Corporation, Pool # A78321, 5.500%, Due 12/1/2037 | 1.0 | % | ||
JPMorgan Chase & Co., 3.700%, Due 1/20/2015 | 1.0 | % | ||
Federal National Mortgage Association, Pool # 948590, 6.500%, Due 8/1/2037 | 0.9 | % | ||
Berkshire Hathaway, Inc., 1.400%, Due 2/10/2012 | 0.8 | % | ||
Federal Home Loan Mortgage Corporation, Pool # A73703, 5.000%, Due 3/1/2038 | 0.8 | % | ||
HSBC Finance Corp., 5.250%, Due 1/14/2011 | 0.7 | % | ||
American Express Credit Account Master Trust, 5.350%, Due 1/15/2014 | 0.7 | % | ||
Government National Mortgage Association, Pool # 782916, 5.500%, Due 2/15/2040 | 0.7 | % |
Sector Allocation
% of | ||||
Fixed | ||||
Income | ||||
Corporate | 44.5 | % | ||
Mortgage-Backed | 26.1 | % | ||
U.S. Treasury | 23.7 | % | ||
Asset-Backed | 4.5 | % | ||
U.S. Agency | 0.9 | % | ||
Municipal/Other Governments | 0.3 | % |
8
Performance Overview
American Beacon Short-Term Bond FundSM
April 30, 2010 (Unaudited)
The Institutional Class of the Short-Term Bond Fund returned 1.63% for the six months ended April 30, 2010, which outperformed the BofA Merrill Lynch 1-3 Year Corp/Gov Index (“Index”) return of 1.24% but underperformed the Lipper Short Investment Grade Bond Funds Index (“Lipper”) return of 2.82%.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/10 | ||||||||||||||||
6 | 5 | 10 | ||||||||||||||
Months* | 1 Year | Years | Years | |||||||||||||
Institutional Class(1,4) | 1.63 | % | 5.18 | % | 4.28 | % | 4.65 | % | ||||||||
Y Class (1,2,4) | 1.74 | % | 5.29 | % | 4.31 | % | 4.66 | % | ||||||||
Investor Class(1,4) | 1.53 | % | 4.99 | % | 3.82 | % | 4.17 | % | ||||||||
Lipper Short Inv. Grade Index(3) | 2.82 | % | 10.21 | % | 3.63 | % | 4.03 | % | ||||||||
BofA Merrill Lynch 1-3 Yr. Gov./Corp. Index(3) | 1.24 | % | 4.10 | % | 4.46 | % | 4.77 | % |
* | Not annualized | |
1. | Performance shown is historical and may not be indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. A portion of the fees charged to the Investor Class of the Fund has been waived. Performance prior to waiving fees was lower than the actual returns shown. Performance shown reflects the Fund’s receipt in December 2006 and March 2008 of class action proceeds that were related to investment activity in 2002. The Fund’s performance was higher than it would have been absent receipt of the settlement proceeds. | |
2. | Fund performance for the six month, one-year, five-year, and ten-year period represents the total returns achieved by the Institutional Class from 4/30/00 up to 3/1/10, the inception date of the Y Class, and the returns of the Y Class since its inception. Expenses of the Y Class are higher than those of the Institutional Class. As a result, total returns shown may be higher than they would have been had the Y Class been in existence since 4/30/00. | |
3. | The BofA Merrill Lynch 1-3 Yr. Gov./Corp. Index is a market value weighted performance benchmark for government and corporate fixed-rate debt securities with maturities between one and three years. The Lipper Short Investment Grade Bond Funds Index tracks the results of the 30 largest mutual funds in the Lipper Short Investment Grade Bond Funds category. Lipper is an independent mutual fund research and ranking service. One cannot directly invest in an index. | |
4. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, and Investor Class shares was 0.33%, 0.43%, and 0.85%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report. |
As compared to the Index, the Fund outperformed due to its overweight positions in the Corporate and Asset-Backed sectors. These sectors outperformed Treasuries and Agencies during the period as the credit markets continued to recover following the improving economy. The Fund generally maintains overweight positions in these sectors to generate incremental yield-to-maturity compared to the Index.
The Fund’s duration was shorter than the Index duration during the period in response to the ultra-low interest rate environment. The Fund’s short duration resulted in a slightly lower total return than would have been the case with a neutral duration. While we do not expect the Federal Reserve Bank (the “Fed”) to raise interest rates soon, we do want to protect the Fund from an ultimate rise in rates that will inevitably accompany Fed monetary policy. In the mean time, we intend to opportunistically add duration to the Fund to keep it within approximately 30% of Index duration until the Fed rate hikes become more imminent.
Despite the recent volatility emanating from Europe, the U.S. short-term fixed-income markets have recovered significantly from where they were in early 2009. During the past six months, the recovery continued – albeit at a more moderate pace. The credit markets have largely stabilized, and the financial crisis is behind us, but the global recovery is still fragile. As such, while we search for value in the new credit environment, we will maintain our conservative approach and will look for opportunity to generate attractive long-term results.
9
Performance Overview
American Beacon Short-Term Bond FundSM
April 30, 2010 (Unaudited)
Top Ten Holdings
% of | ||||
Net Assets | ||||
Bank of America Corp., 2.375%, Due 6/22/2012 | 6.1 | % | ||
Dexia Credit Local N.Y., 0.652%, Due 3/5/2013 | 1.8 | % | ||
John Deere Owner Trust, 0.720%, Due 7/16/2012 | 1.8 | % | ||
Chrysler Financial Lease Trust, 1.780%, Due 6/15/2011 | 1.8 | % | ||
USAA Auto Owner Trust, 5.550%, Due 2/15/2013 | 1.8 | % | ||
Government National Mortgage Association 2010-52 A, 3.069%, Due 6/16/2036 | 1.8 | % | ||
JPMorgan Chase & Co., 0.902%, Due 2/26/2013 | 1.8 | % | ||
AT&T Wireless Services, Inc., 7.875%, Due 3/1/2011 | 1.6 | % | ||
Citigroup, Inc., 0.558%, Due 11/5/2014 | 1.4 | % | ||
MBNA Corp., 7.500%, Due 3/15/2012 | 1.3 | % |
Sector Allocation
% of | ||||
Fixed Income | ||||
Corporate Bonds | 53.0 | % | ||
Asset-Backed | 24.6 | % | ||
Treasury | 9.0 | % | ||
Mortgage-Backed | 7.1 | % | ||
Agency | 6.1 | % | ||
Municipal | 0.2 | % |
10
Fund Expenses — Actual
April 30, 2010 (Unaudited)
Fund Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees if applicable, and (2) ongoing costs, including management fees, administrative service fees, and other Fund expenses. The examples below are intended to help you understand the ongoing cost (in dollars) of investing in a particular Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from November 1, 2009 through April 30, 2010.
Actual Expenses
The following tables provide information about actual account values and actual expenses. You may use the information on this page, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the “Expenses Paid During Period” for the applicable Fund to estimate the expenses you paid on your account during this period. Shareholders of the Investor and Institutional Classes that invest in a Fund through an IRA may be subject to a custodial IRA fee of $12 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $12 higher.
High Yield | Intermediate | Short-Term | ||||||||||
Institutional Class | Bond Fund | Bond Fund | Bond Fund | |||||||||
Beginning Account Value 11/1/09 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/10 | $ | 1,104.78 | $ | 1,023.09 | $ | 1,016.34 | ||||||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 4.02 | $ | 1.76 | $ | 1.95 | ||||||
Annualized Expense Ratio | 0.77 | % | 0.35 | % | 0.39 | % |
Retirement | ||||||||||||||||
Income and | ||||||||||||||||
High Yield | Appreciation | Intermediate | Short-Term | |||||||||||||
Y Class | Bond Fund | Fund | Bond Fund | Bond Fund | ||||||||||||
Beginning Account Value 3/1/10** | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 4/30/10 | $ | 1,046.60 | $ | 1,014.80 | $ | 1,009.70 | $ | 1,005.90 | ||||||||
Expenses Paid During Period 3/1/10-4/30/10 ** | $ | 1.52 | $ | 1.13 | $ | 0.74 | $ | 0.71 | ||||||||
Annualized Expense Ratio | 0.89 | % | 0.67 | % | 0.44 | % | 0.42 | % |
Retirement | ||||||||||||||||
Income and | ||||||||||||||||
High Yield | Appreciation | Intermediate | Short-Term | |||||||||||||
Investor Class | Bond Fund | Fund | Bond Fund | Bond Fund | ||||||||||||
Beginning Account Value 11/1/09 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 4/30/10 | $ | 1,103.38 | $ | 1,033.04 | $ | 1,020.26 | $ | 1,015.28 | ||||||||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 5.37 | $ | 5.49 | $ | 3.61 | $ | 3.10 | ||||||||
Annualized Expense Ratio | 1.03 | % | 1.09 | % | 0.72 | % | 0.62 | % |
High Yield | ||||
AMR Class | Bond Fund | |||
Beginning Account Value 11/1/09 | $ | 1,000.00 | ||
Ending Account Value 4/30/2010 | $ | 1,106.10 | ||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 2.77 | ||
Annualized Expense Ratio | 0.53 | % |
* | Expenses are equal to the Fund’s annualized expense ratio for the six-month period multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year ( 181 ) by days in the year ( 365 ) to reflect the half-year period. | |
** | Beginning account value for Y Class is the inception date of 3/1/10. Expenses are equal to the Fund’s annualized expense ratio for the period multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the period ( 61 ) by days in the year ( 365 ). |
11
Fund Expenses — Hypothetical
April 30, 2010 (Unaudited)
Hypothetical Example for Comparison Purposes
The following tables provide information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed 5% per year rate of return before expenses (not the Fund’s actual return). You may compare the ongoing costs of investing in a particular Fund with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Shareholders of the Investor and Institutional Classes that invest in a Fund through an IRA may be subject to a custodial IRA fee of $12 that is typically deducted each December. If your account was subject to a custodial IRA fee during the pe riod, your costs would have been $12 higher.
You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs charged by a Fund, such as redemption fees as applicable. Similarly, the expense examples for other funds do not reflect any transaction costs charged by those funds, such as sales charges (loads), redemption fees or exchange fees. Therefore, the following tables are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If you were subject to any transaction costs during the period, your costs would have been higher.
High Yield | Intermediate | Short-Term | ||||||||||
Institutional Class | Bond Fund | Bond Fund | Bond Fund | |||||||||
Beginning Account Value 11/1/09 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/10 | $ | 1,020.98 | $ | 1,023.06 | $ | 1,022.86 | ||||||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 3.86 | $ | 1.76 | $ | 1.96 | ||||||
Annualized Expense Ratio | 0.77 | % | 0.35 | % | 0.39 | % |
Retirement | ||||||||||||||||
Income and | ||||||||||||||||
High Yield | Appreciation | Intermediate | Short-Term | |||||||||||||
Y Class | Bond Fund | Fund | Bond Fund | Bond Fund | ||||||||||||
Beginning Account Value 3/1/10** | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 4/30/10 | $ | 1,006.87 | $ | 1,007.23 | $ | 1,007.62 | $ | 1,007.65 | ||||||||
Expenses Paid During Period 3/1/10-4/30/10** | $ | 1.49 | $ | 1.13 | $ | 0.74 | $ | 0.71 | ||||||||
Annualized Expense Ratio | 0.89 | % | 0.67 | % | 0.44 | % | 0.42 | % |
Retirement | ||||||||||||||||
Income and | ||||||||||||||||
High Yield | Appreciation | Intermediate | Short-Term | |||||||||||||
Investor Class | Bond Fund | Fund | Bond Fund | Bond Fund | ||||||||||||
Beginning Account Value 11/1/09 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 4/30/10 | $ | 1,019.69 | $ | 1,019.39 | $ | 1,021.22 | $ | 1,021.72 | ||||||||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 5.16 | $ | 5.46 | $ | 3.61 | $ | 3.11 | ||||||||
Annualized Expense Ratio | 1.03 | % | 1.09 | % | 0.72 | % | 0.62 | % |
High Yield | ||||
AMR Class | Bond Fund | |||
Beginning Account Value 11/1/09 | $ | 1,000.00 | ||
Ending Account Value 4/30/10 | $ | 1,022.17 | ||
Expenses Paid During Period 11/1/09-4/30/10 * | $ | 2.66 | ||
Annualized Expense Ratio | 0.53 | % |
* | Expenses are equal to the Fund’s annualized expense ratio for the six-month period multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year ( 181 ) by days in the year ( 365 ) to reflect the half-year period. | |
** | Beginning account value for Y Class is the inception date of 3/1/10. Expenses are equal to the Fund’s annualized expense ratio for the period multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the period ( 61 ) by days in the year ( 365 ). |
12
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
COMMON STOCKS — 0.47% | ||||||||
COMMUNICATIONS — 0.47% | ||||||||
Communications — 0.08% | ||||||||
Charter Communications, Inc. ^ | 4,260 | $ | 161 | |||||
Charter Communications, Inc., Warrant ^ | 5,175 | 24 | ||||||
185 | ||||||||
Media — 0.39% | ||||||||
Dex One Corp. ^ | 30,265 | 917 | ||||||
SuperMedia, Inc. ^ | 1,037 | 47 | ||||||
964 | ||||||||
Total Common Stocks | 1,149 | |||||||
PREFERRED STOCKS — 0.17% | ||||||||
FINANCE — 0.17% | ||||||||
Diversified Financials — 0.01% | ||||||||
Federal Home Loan Mortgage Corp. ^ | 10,000 | 16 | ||||||
Finance — 0.16% | ||||||||
Ally Financial, Inc. ‡ | 454 | 386 | ||||||
Total Preferred Stocks | 402 | |||||||
Par | ||||||||
Amount | ||||||||
CORPORATE OBLIGATIONS — 95.18% | ||||||||
Cable / Media — 10.81% | ||||||||
Cablevision Systems Corp., 8.625%, Due 9/15/2017 ‡ | $ | 1,000 | 1,055 | |||||
CCH II Holdings LLC, | ||||||||
13.50%, Due 11/30/2016 | 1,050 | 1,271 | ||||||
13.50%, Due 11/30/2016 ‡ | 807 | 968 | ||||||
CCO Holdings LLC, 8.125%, Due 4/30/2020 ‡ | 400 | 409 | ||||||
Cengage Learning Acquisitions, Inc., 10.50%, Due 1/15/2015 ‡ | 705 | 691 | ||||||
Cequel Communications Holdings I LLC, 8.625%, Due 11/15/2017 ‡ | 525 | 534 | ||||||
Clear Channel Worldwide Holdings, Inc., 9.25%, Due 12/15/2017 ‡ | 1,450 | 1,552 | ||||||
CSC Holdings LLC, 8.50%, Due 4/15/2014 ‡ | 500 | 536 | ||||||
DISH DBS Corp., 7.125%, Due 2/1/2016 | 1,500 | 1,522 | ||||||
HSN, Inc., 11.25%, Due 8/1/2016 | 650 | 733 | ||||||
Hughes Network Systems LLC, 9.50%, Due 4/15/2014 | 650 | 670 | ||||||
Intelsat Jackson Holdings SA, 11.25%, Due 6/15/2016 | 2,200 | 2,382 | ||||||
Intelsat Luxembourg SA, 11.50%, Due 2/4/2017 | 650 | 686 | ||||||
Lamar Media Corp., 7.875%, Due 4/15/2018 ‡ | 400 | 409 | ||||||
Liberty Media LLC, 5.70%, Due 5/15/2013 | 500 | 502 | ||||||
LIN Television Corp., | ||||||||
6.50%, Due 5/15/2013 | 600 | 594 | ||||||
8.375%, Due 4/15/2018 ‡ | 100 | 103 | ||||||
Media General, Inc., 11.75%, Due 2/15/2017 ‡ | 800 | 854 | ||||||
Mediacom LLC, 9.125%, Due 8/15/2019 ‡ | 400 | 412 | ||||||
Québécor Média, Inc., 7.75%, Due 3/15/2016 | 500 | 501 |
See accompanying notes
13
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Radio One, Inc., 6.375%, Due 2/15/2013 | $ | 900 | $ | 754 | ||||
Rainbow National Services LLC, | ||||||||
8.75%, Due 9/1/2012 ‡ | 550 | 558 | ||||||
10.375%, Due 9/1/2014 ‡ | 625 | 656 | ||||||
Sinclair Television Group, Inc., 9.25%, Due 11/1/2017 ‡ | 1,000 | 1,062 | ||||||
Telesat Canada, 12.50%, Due 11/1/2017 | 897 | 1,046 | ||||||
Univision Communications, Inc., | ||||||||
12.00%, Due 7/1/2014 ‡ | 895 | 989 | ||||||
10.50%, Due 3/15/2015 ‡ | 1,080 | 980 | ||||||
UPC Germany GmbH, 8.125%, Due 12/1/2017 ‡ | 1,000 | 1,020 | ||||||
WMG Acquisition Corp., 9.50%, Due 6/15/2016 ‡ | 1,000 | 1,080 | ||||||
WMG Holdings Corp., 9.50%, Due 12/15/2014 # | 1,755 | 1,777 | ||||||
26,306 | ||||||||
Casino/Gaming — 0.01% | ||||||||
Fontainebleau Las Vegas Holdings LLC, 10.25%, Due 6/15/2015 ‡ § | 1,800 | 25 | ||||||
Station Casinos, Inc., 6.875%, Due 3/1/2016 § | 500 | 4 | ||||||
29 | ||||||||
Communications — 0.12% | ||||||||
Columbus International, Inc., 11.50%, Due 11/20/2014 ‡ | 260 | 286 | ||||||
Consumer — 4.55% | ||||||||
Alliance One International, Inc., 10.00%, Due 7/15/2016 ‡ | 400 | 424 | ||||||
Central Garden and Pet Co., 8.25%, Due 3/1/2018 | 595 | 608 | ||||||
Cott Beverages, Inc., 8.375%, Due 11/15/2017 ‡ | 400 | 418 | ||||||
Dole Food Co, Inc., 13.875%, Due 3/15/2014 | 615 | 744 | ||||||
Easton-Bell Sports, Inc., 9.75%, Due 12/1/2016 ‡ | 855 | 911 | ||||||
Fage Dairy Industries, 9.875%, Due 2/1/2020 ‡ | 815 | 766 | ||||||
Independencia International Ltd., 15.00%, Due 3/31/2015 ‡ | 550 | 505 | ||||||
Jarden Corp., 7.50%, Due 5/1/2017 | 1,000 | 1,022 | ||||||
JBS USA LLC, 11.625%, Due 5/14/2011 | 1,835 | 2,110 | ||||||
Jostens IH Corp., 7.625%, Due 10/1/2012 | 500 | 502 | ||||||
Libbey Glass, Inc., 10.00%, Due 2/15/2015 ‡ | 1,010 | 1,067 | ||||||
Pinnacle Foods Finance LLC, | ||||||||
9.25%, Due 4/1/2015 ‡ | 800 | 832 | ||||||
10.625%, Due 4/1/2017 | 475 | 511 | ||||||
Prestige Brands, Inc., 8.25%, Due 4/1/2018 ‡ | 630 | 649 | ||||||
11,069 | ||||||||
Energy — 11.17% | ||||||||
Antero Resources Finance Corp., 9.375%, Due 12/1/2017 ‡ | 700 | 724 | ||||||
Berry Petroleum Co., 10.25%, Due 6/1/2014 | 1,047 | 1,160 | ||||||
Chesapeake Energy Corp., 6.625%, Due 1/15/2016 ‡ | 2,000 | 1,970 | ||||||
Cie Generale de Geophysique-Veritas, | ||||||||
7.50%, Due 5/15/2015 | 500 | 506 | ||||||
9.50%, Due 5/15/2016 | 500 | 535 |
See accompanying notes
14
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Coffeyville Resources LLC, | ||||||||
9.00%, Due 4/1/2015 ‡ | $ | 265 | $ | 270 | ||||
10.875%, Due 4/1/2017 ‡ | 605 | 617 | ||||||
Compton Petroleum Finance Corp., 7.625%, Due 12/1/2013 | 775 | 659 | ||||||
Copano Energy LLC, 8.125%, Due 3/1/2016 | 1,000 | 1,015 | ||||||
Denbury Resources, Inc., 8.25%, Due 2/15/2020 | 932 | 1,000 | ||||||
El Paso Corp., | ||||||||
12.00%, Due 12/12/2013 | 500 | 595 | ||||||
7.00%, Due 6/15/2017 | 900 | 925 | ||||||
Enterprise Products Operating LLC, 7.034%, Due 1/15/2068 | 1,710 | 1,652 | ||||||
Helix Energy Solutions Group, Inc., 9.50%, Due 1/15/2016 ‡ | 685 | 712 | ||||||
Hilcorp Energy, 8.00%, Due 2/15/2020 ‡ | 795 | 775 | ||||||
Holly Corp., 9.875%, Due 6/15/2017 ‡ | 300 | 312 | ||||||
Linn Energy LLC, | ||||||||
9.875%, Due 7/1/2018 | 1,130 | 1,220 | ||||||
8.625%, Due 4/15/2020 ‡ | 1,000 | 1,038 | ||||||
Mariner Energy, Inc., | ||||||||
7.50%, Due 4/15/2013 | 200 | 207 | ||||||
11.75%, Due 6/30/2016 | 100 | 128 | ||||||
MarkWest Energy Partners LP, 8.75%, Due 4/15/2018 | 780 | 808 | ||||||
Martin Midstream Partners & Finance, 8.875%, Due 4/1/2018 ‡ | 895 | 908 | ||||||
OPTI Canada, Inc., | ||||||||
9.00%, Due 12/15/2012 ‡ | 1,020 | 1,046 | ||||||
8.25%, Due 12/15/2014 | 735 | 706 | ||||||
Penn Virginia Resource Finance Corp., 8.25%, Due 4/15/2018 | 460 | 469 | ||||||
Petrohawk Energy Corp., | ||||||||
10.50%, Due 8/1/2014 | 1,000 | 1,105 | ||||||
7.875%, Due 6/1/2015 | 430 | 444 | ||||||
Plains Exploration & Production Co., 10.00%, Due 3/1/2016 | 1,200 | 1,329 | ||||||
Quicksilver Resources, Inc., | ||||||||
8.25%, Due 8/1/2015 | 500 | 515 | ||||||
9.125%, Due 8/15/2019 | 500 | 536 | ||||||
Regency Energy Partners LP, 9.375%, Due 6/1/2016 ‡ | 635 | 681 | ||||||
SandRidge Energy, Inc., | ||||||||
9.875%, Due 5/15/2016 ‡ | 750 | 788 | ||||||
8.00%, Due 6/1/2018 ‡ | 900 | 884 | ||||||
Tesoro Corp., 6.50%, Due 6/1/2017 | 1,000 | 940 | ||||||
27,179 | ||||||||
Finance — 9.90% | ||||||||
Alliant Holdings I, Inc., 11.00%, Due 5/1/2015 ‡ | 700 | 723 | ||||||
Ally Financial, Inc., | ||||||||
6.875%, Due 8/28/2012 | 2,000 | 2,037 | ||||||
8.30%, Due 2/12/2015 ‡ | 655 | 684 | ||||||
8.00%, Due 12/31/2018 | 400 | 398 | ||||||
8.00%, Due 11/1/2031 | 975 | 951 |
See accompanying notes
15
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Bank of America Corp., 8.125%, Due 12/29/2049 | $ | 1,000 | $ | 1,007 | ||||
CEDC Finance Corp International, Inc., 9.125%, Due 12/1/2016 ‡ | 1,600 | 1,696 | ||||||
CEVA Group plc, | ||||||||
11.625%, Due 10/1/2016 ‡ | 100 | 109 | ||||||
11.50%, Due 4/1/2018 ‡ | 800 | 861 | ||||||
CIT Group, Inc., 7.00%, Due 5/1/2017 | 900 | 856 | ||||||
E*Trade Financial Corp., 12.50%, Due 11/30/2017 | 900 | 1,075 | ||||||
Expro Finance Luxembourg SCA, 8.50%, Due 12/15/2016 ‡ | 1,000 | 1,025 | ||||||
Financiera Independencia S.A.B. de C.V., 10.00%, Due 3/15/2015 ‡ | 260 | 262 | ||||||
HUB International Holdings, Inc., 10.25%, Due 6/15/2015 ‡ | 1,250 | 1,219 | ||||||
Icahn Enterprises LP, 8.00%, Due 1/15/2018 ‡ | 1,135 | 1,104 | ||||||
International Lease Finance Corp., | ||||||||
5.65%, Due 6/1/2014 | 1,200 | 1,098 | ||||||
8.625%, Due 9/15/2015 ‡ | 600 | 593 | ||||||
JP Morgan Chase & Co., 7.90%, Due 12/31/2049 | 500 | 525 | ||||||
Lehman Brothers Holdings, Inc., 6.20%, Due 9/26/2014 § | 1,500 | 330 | ||||||
Liberty Mutual Group, Inc., 10.75%, Due 6/15/2058 ‡ | 735 | 856 | ||||||
Marsico Parent Co. LLC, | ||||||||
10.625%, Due 1/15/2016 ‡ | 800 | 529 | ||||||
12.50%, Due 7/15/2016 ‡ | 619 | 168 | ||||||
MBNA Capital A, 8.278%, Due 12/1/2026 | 625 | 633 | ||||||
Midwest Gaming Borrower LLC, 11.625%, Due 4/15/2016 ‡ | 950 | 976 | ||||||
Nationwide Mutual Insurance Co., 9.375%, Due 8/15/2039 ‡ | 500 | 598 | ||||||
NES Rentals Holdings, Inc., 12.25%, Due 4/15/2015 ‡ | 355 | 341 | ||||||
PE Paper Escrow GmbH, 12.00%, Due 8/1/2014 ‡ | 950 | 1,083 | ||||||
Prime Dig Pte Ltd., 11.75%, Due 11/3/2014 ‡ | 195 | 214 | ||||||
Reliance Intermediate Holdings LP, 9.50%, Due 12/15/2019 ‡ | 820 | 866 | ||||||
Rouse Company, 8.00%, Due 4/30/2049 § | 660 | 739 | ||||||
Wells Fargo Capital XIII, 7.70%, Due 12/29/2049 | 500 | 520 | ||||||
24,076 | ||||||||
Manufacturing — 23.01% | ||||||||
Advanced Micro Devices, Inc., 8.125%, Due 12/15/2017 ‡ | 200 | 206 | ||||||
AK Steel Corp., 7.625%, Due 5/15/2020 | 550 | 566 | ||||||
Allison Transmission, Inc., 11.00%, Due 11/1/2015 ‡ | 1,200 | 1,296 | ||||||
American Axle & Manufacturing Holdings, Inc., 9.25%, Due 1/15/2017 ‡ | 560 | 595 | ||||||
Amsted Industries, Inc., 8.125%, Due 3/15/2018 ‡ | 675 | 675 | ||||||
ArvinMeritor, Inc., 10.625%, Due 3/15/2018 | 400 | 430 | ||||||
Belden, Inc., 9.25%, Due 6/15/2019 ‡ | 715 | 769 | ||||||
Boise Paper Holdings LLC, 8.00%, Due 4/1/2020 ‡ | 600 | 618 | ||||||
Building Materials Corp. of America, 7.50%, Due 3/15/2020 ‡ | 690 | 688 | ||||||
Cemex Finance LLC, 9.50%, Due 12/14/2016 ‡ | 205 | 207 | ||||||
Cleaver-Brooks, Inc., 12.25%, Due 5/1/2016 ‡ | 390 | 394 | ||||||
Colt Defense LLC, 8.75%, Due 11/15/2017 ‡ | 700 | 665 | ||||||
Consol Energy, Inc., 8.00%, Due 4/1/2017 ‡ | 670 | 708 |
See accompanying notes
16
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
8.25%, Due 4/1/2020 ‡ | $ | 535 | $ | 570 | ||||
Cooper Standard Automotive, 8.50%, Due 5/1/2018 ‡ | 300 | 307 | ||||||
CPG International I, Inc., | ||||||||
7.18%, Due 7/1/2012 # | 460 | 442 | ||||||
10.50%, Due 7/1/2013 | 350 | 354 | ||||||
Diversey Holdings, Inc., 10.50%, Due 5/15/2020 ‡ | 800 | 890 | ||||||
Fibria Overseas Finance Ltd., 7.50%, Due 5/4/2020 ‡ | 895 | 898 | ||||||
First Data Corp., | ||||||||
9.875%, Due 9/24/2015 | 1,000 | 915 | ||||||
10.55%, Due 9/24/2015 | 1,474 | 1,304 | ||||||
Ford Motor Credit Co. LLC, | ||||||||
7.50%, Due 8/1/2012 | 2,500 | 2,584 | ||||||
7.00%, Due 4/15/2015 | 1,090 | 1,108 | ||||||
8.125%, Due 1/15/2020 | 1,140 | 1,208 | ||||||
Freeport-McMoRan Copper & Gold, Inc., 8.375%, Due 4/1/2017 | 500 | 561 | ||||||
Freescale Semiconductor, Inc., | ||||||||
8.875%, Due 12/15/2014 | 1,200 | 1,182 | ||||||
9.125%, Due 12/15/2014 | 700 | 698 | ||||||
9.25%, Due 4/15/2018 ‡ | 450 | 468 | ||||||
Goodman Global Group, Inc., Zero Coupon, Due 12/15/2014 ‡ | 535 | 326 | ||||||
Graphic Packaging International, Inc., 9.50%, Due 6/15/2017 | 500 | 537 | ||||||
Grupo Papelero Scribe SA, 8.875%, Due 4/7/2020 ‡ | 440 | 414 | ||||||
Hanesbrands, Inc., 8.00%, Due 12/15/2016 | 500 | 522 | ||||||
Huntsman International LLC, 7.875%, Due 11/15/2014 | 1,200 | 1,218 | ||||||
Ineos Group Holdings plc, 8.50%, Due 2/15/2016 ‡ | 500 | 445 | ||||||
International Coal Group, Inc., 9.125%, Due 4/1/2018 | 540 | 559 | ||||||
K Hovnanian Enterprises, Inc., 10.625%, Due 10/15/2016 | 810 | 887 | ||||||
KB Home, | ||||||||
6.25%, Due 6/15/2015 | 500 | 489 | ||||||
9.10%, Due 9/15/2017 | 400 | 431 | ||||||
LBI Escrow Corp., 8.00%, Due 11/1/2017 ‡ | 605 | 627 | ||||||
MacDermid, Inc., 9.50%, Due 4/15/2017 ‡ | 2,425 | 2,504 | ||||||
Manitowoc Co., Inc., 9.50%, Due 2/15/2018 | 500 | 525 | ||||||
Meritage Homes Corp., 6.25%, Due 3/15/2015 | 925 | 890 | ||||||
Momentive Performance Materials, Inc., 9.75%, Due 12/1/2014 | 900 | 916 | ||||||
Motors Liquidation Co., 8.375%, Due 7/15/2033 § | 1,570 | 601 | ||||||
Navistar International Corp., 8.25%, Due 11/1/2021 | 1,115 | 1,176 | ||||||
NewPage Corp., 11.375%, Due 12/31/2014 | 2,150 | 2,209 | ||||||
Norske Skogindustrier ASA, 6.125%, Due 10/15/2015 ‡ | 1,450 | 947 | ||||||
Novelis, Inc., 7.25%, Due 2/15/2015 | 1,100 | 1,083 | ||||||
NXP b.v., 9.50%, Due 10/15/2015 | 900 | 884 | ||||||
Oshkosh Corp., | ||||||||
8.25%, Due 3/1/2017 ‡ | 100 | 105 | ||||||
8.50%, Due 3/1/2020 ‡ | 510 | 537 | ||||||
Owens-Brockway Glass Container, Inc., 6.75%, Due 12/1/2014 | 1,000 | 1,025 |
See accompanying notes
17
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Peabody Energy Corp., 7.375%, Due 11/1/2016 | $ | 1,000 | $ | 1,060 | ||||
Phillips-Van Heusen Corp., 7.375%, Due 5/15/2020 | 200 | 205 | ||||||
RBS Global, Inc., 8.50%, Due 5/1/2018 ‡ | 1,875 | 1,880 | ||||||
Reynolds Group, 8.50%, Due 5/15/2018 ‡ | 1,350 | 1,360 | ||||||
Ryerson, Inc., 12.00%, Due 11/1/2015 | 570 | 616 | ||||||
Sanmina-SCI Corp., 8.125%, Due 3/1/2016 | 1,000 | 1,012 | ||||||
Solo Cup Co., 8.50%, Due 2/15/2014 | 1,800 | 1,809 | ||||||
Standard Pacific Corp., 8.375%, Due 5/15/2018 | 300 | 305 | ||||||
Stratus Technologies, Inc., 12.00%, Due 3/29/2015 ‡ | 425 | 411 | ||||||
SunGard Data Systems, Inc., | ||||||||
9.125%, Due 8/15/2013 | 200 | 205 | ||||||
10.25%, Due 8/15/2015 | 700 | 738 | ||||||
Thermon Industries, Inc., 9.50%, Due 5/1/2017 ‡ | 1,320 | 1,346 | ||||||
TransDigm, Inc., 7.75%, Due 7/15/2014 ‡ | 380 | 389 | ||||||
TriMas Corp., 9.75%, Due 12/15/2017 ‡ | 625 | 645 | ||||||
TRW Automotive, Inc., | ||||||||
7.25%, Due 3/15/2017 ‡ | 1,000 | 1,007 | ||||||
8.875%, Due 12/1/2017 ‡ | 590 | 626 | ||||||
Tube City IMS Corp., 9.75%, Due 2/1/2015 | 500 | 505 | ||||||
USG Corp., 9.75%, Due 8/1/2014 ‡ | 460 | 497 | ||||||
Viasat, Inc., 8.875%, Due 9/15/2016 ‡ | 200 | 205 | ||||||
55,984 | ||||||||
Other Corporate — 3.08% | ||||||||
AES Corp., 9.75%, Due 4/15/2016 ‡ | 50 | 54 | ||||||
Crown Castle International Corp., 9.00%, Due 1/15/2015 | 1,000 | 1,074 | ||||||
Dynegy Holdings, Inc., | ||||||||
7.50%, Due 6/1/2015 ‡ | 1,000 | 875 | ||||||
8.375%, Due 5/1/2016 | 1,500 | 1,320 | ||||||
Forest City Enterprises, Inc., 7.625%, Due 6/1/2015 | 1,100 | 1,023 | ||||||
Intergen NV, 9.00%, Due 6/30/2017 ‡ | 1,000 | 1,045 | ||||||
Novasep Holding SAS, 9.75%, Due 12/15/2019 ‡ | 605 | 611 | ||||||
NRG Energy, Inc., 7.375%, Due 2/1/2016 | 1,500 | 1,485 | ||||||
7,487 | ||||||||
Service — 21.45% | ||||||||
American Renal Holdings, 8.375%, Due 5/15/2018 ‡ | 110 | 111 | ||||||
Boston Scientific Corp., 6.00%, Due 1/15/2020 | 800 | 791 | ||||||
Burlington Coat Factory Warehouse Corp., 11.125%, Due 4/15/2014 | 275 | 289 | ||||||
Carrols Corp., 9.00%, Due 1/15/2013 | 675 | 690 | ||||||
Casella Waste Systems, Inc., | ||||||||
9.75%, Due 2/1/2013 | 1,150 | 1,159 | ||||||
11.00%, Due 7/15/2014 ‡ | 650 | 705 | ||||||
Clean Harbors, Inc., 7.625%, Due 8/15/2016 | 625 | 651 | ||||||
Country Garden Holdings Co., 11.25%, Due 4/22/2017 ‡ | 335 | 331 | ||||||
CRC Health Corp., 10.75%, Due 2/1/2016 | 1,350 | 1,286 | ||||||
DaVita, Inc., 7.25%, Due 3/15/2015 | 1,000 | 1,020 |
See accompanying notes
18
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Denny’s Holdings, Inc., 10.00%, Due 10/1/2012 | $ | 620 | $ | 632 | ||||
Dollar General Corp., 10.625%, Due 7/15/2015 | 985 | 1,095 | ||||||
Equinox Holdings, Inc., 9.50%, Due 2/1/2016 ‡ | 950 | 969 | ||||||
Felcor Lodging LP, 10.00%, Due 10/1/2014 | 500 | 522 | ||||||
Fresenius Medical Care Capital Trust IV, 7.875%, Due 6/15/2011 | 1,000 | 1,050 | ||||||
Fresenius US Finance II, Inc., 9.00%, Due 7/15/2015 ‡ | 500 | 562 | ||||||
Great Atlantic & Pacific Tea Co., 11.375%, Due 8/1/2015 ‡ | 950 | 940 | ||||||
Harrah’s Operating Co., Inc., 11.25%, Due 6/1/2017 | 2,400 | 2,616 | ||||||
HCA, Inc., 9.625%, Due 11/15/2016 | 3,000 | 3,262 | ||||||
Health Net, Inc., 6.375%, Due 6/1/2017 | 650 | 604 | ||||||
Healthsouth Corp., 10.75%, Due 6/15/2016 | 550 | 600 | ||||||
Iron Mountain, Inc., 8.00%, Due 6/15/2020 | 600 | 622 | ||||||
Live Nation Entertainment, Inc., 8.125%, Due 5/15/2018 ‡ | 930 | 956 | ||||||
MGM Mirage, | ||||||||
8.375%, Due 2/1/2011 | 1,000 | 1,012 | ||||||
6.625%, Due 7/15/2015 | 1,900 | 1,639 | ||||||
9.00%, Due 3/15/2020 ‡ | 300 | 315 | ||||||
Michaels Stores, Inc., 10.00%, Due 11/1/2014 | 1,200 | 1,272 | ||||||
MTR Gaming Group, Inc., 12.625%, Due 7/15/2014 | 275 | 289 | ||||||
NCL Corp Ltd., 11.75%, Due 11/15/2016 ‡ | 1,000 | 1,110 | ||||||
Neiman Marcus Group, Inc., 10.375%, Due 10/15/2015 | 935 | 985 | ||||||
Nielsen Finance LLC, Zero Coupon, Due 8/1/2016 # | 620 | 601 | ||||||
NPC International, Inc., 9.50%, Due 5/1/2014 | 800 | 810 | ||||||
PharmaNet Development Group, Inc., 10.875%, Due 4/15/2017 ‡ | 525 | 537 | ||||||
Pinnacle Entertainment, Inc., | ||||||||
7.50%, Due 6/15/2015 | 1,100 | 1,059 | ||||||
8.75%, Due 5/15/2020 ‡ | 575 | 574 | ||||||
Pokagon Gaming Authority, 10.375%, Due 6/15/2014 ‡ | 1,000 | 1,050 | ||||||
Psychiatric Solutions, Inc., 7.75%, Due 7/15/2015 ‡ | 1,250 | 1,275 | ||||||
QVC, Inc., 7.50%, Due 10/1/2019 ‡ | 375 | 384 | ||||||
Reable Therapeutics, 11.75%, Due 11/15/2014 | 1,100 | 1,172 | ||||||
Realogy Corp., 11.00%, Due 4/15/2014 | 1,668 | 1,526 | ||||||
Rite Aid Corp., 9.75%, Due 6/12/2016 | 1,305 | 1,437 | ||||||
RSC Equipment Rental, Inc., 9.50%, Due 12/1/2014 | 1,000 | 1,027 | ||||||
Sally Holdings LLC, 10.50%, Due 11/15/2016 | 800 | 878 | ||||||
Shingle Springs Tribal Gaming Authority, 9.375%, Due 6/15/2015 ‡ | 500 | 425 | ||||||
Sitel LLC, 11.50%, Due 4/1/2018 ‡ | 500 | 508 | ||||||
Speedway Motorsports, Inc., 8.75%, Due 6/1/2016 | 410 | 439 | ||||||
Starwood Hotels & Resorts Worldwide, Inc., 6.75%, Due 5/15/2018 | 1,000 | 1,030 | ||||||
Station Casinos, Inc., 7.75%, Due 8/15/2016 § | 500 | 26 | ||||||
SUPERVALU, Inc., 8.00%, Due 5/1/2016 | 400 | 407 | ||||||
Tenet Healthcare Corp., 10.00%, Due 5/1/2018 ‡ | 1,000 | 1,139 | ||||||
Ticketmaster Entertainment, Inc., 10.75%, Due 8/1/2016 | 1,000 | 1,125 | ||||||
United Surgical Partners International, Inc., 9.25%, Due 5/1/2017 | 1,000 | 1,050 |
See accompanying notes
19
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Universal City Development Partners Ltd., 8.875%, Due 11/15/2015 ‡ | $ | 1,000 | $ | 1,025 | ||||
US Oncology, Inc., | ||||||||
6.643%, Due 3/15/2012 # | 2,062 | 1,969 | ||||||
10.75%, Due 8/15/2014 | 300 | 313 | ||||||
Vanguard Health Holding Co II LLC, 8.00%, Due 2/1/2018 ‡ | 500 | 495 | ||||||
WCA Waste Corp., 9.25%, Due 6/15/2014 | 1,000 | 1,011 | ||||||
Yonkers Racing Corp., 11.375%, Due 7/15/2016 ‡ | 725 | 794 | ||||||
52,171 | ||||||||
Telecommunications — 3.54% | ||||||||
Clearwire Communications LLC, 12.00%, Due 12/1/2015 ‡ | 550 | 571 | ||||||
Cricket Communications, Inc., 7.75%, Due 5/15/2016 | 965 | 1,001 | ||||||
Digicel Group Ltd., | ||||||||
8.875%, Due 1/15/2015 ‡ | 1,445 | 1,445 | ||||||
9.125%, Due 1/15/2015 ‡ | 100 | 101 | ||||||
10.50%, Due 4/15/2018 ‡ | 750 | 801 | ||||||
GCI, Inc., 8.625%, Due 11/15/2019 ‡ | 580 | 590 | ||||||
Level 3 Financing, Inc., 10.00%, Due 2/1/2018 ‡ | 650 | 640 | ||||||
MetroPCS Wireless, Inc., 9.25%, Due 11/1/2014 | 1,200 | 1,245 | ||||||
NII Capital Corp., 10.00%, Due 8/15/2016 ‡ | 1,360 | 1,509 | ||||||
TW Telecom Holdings, Inc., 8.00%, Due 3/1/2018 ‡ | 675 | 699 | ||||||
8,602 | ||||||||
Transportation — 1.28% | ||||||||
General Maritime Corp., 12.00%, Due 11/15/2017 ‡ | 1,350 | 1,465 | ||||||
Greenbrier Cos., Inc., 8.375%, Due 5/15/2015 | 500 | 475 | ||||||
Kansas City Southern de Mexico SA de CV, 12.50%, Due 4/1/2016 | 1,000 | 1,182 | ||||||
3,122 | ||||||||
Utilities — 0.13% | ||||||||
CRTX Energy Finance, 8.875%, Due 2/15/2018 ‡ | 300 | 312 | ||||||
Utility — 6.13% | ||||||||
Cincinnati Bell, Inc., 8.75%, Due 3/15/2018 | 680 | 689 | ||||||
CMS Energy Corp., 8.75%, Due 6/15/2019 | 800 | 916 | ||||||
Elwood Energy LLC, 8.159%, Due 7/5/2026 | 694 | 667 | ||||||
Energy Future Holdings Corp., 10.875%, Due 11/1/2017 | 1,500 | 1,181 | ||||||
Integra Telecom Holdings, Inc., 10.75%, Due 4/15/2016 ‡ | 500 | 510 | ||||||
New Communications Holdings, Inc., | ||||||||
8.25%, Due 4/15/2017 ‡ | 200 | 206 | ||||||
8.50%, Due 4/15/2020 ‡ | 200 | 206 | ||||||
8.75%, Due 4/15/2022 ‡ | 400 | 412 | ||||||
Qwest Communications International, Inc., 7.50%, Due 2/15/2014 | 700 | 712 | ||||||
Qwest Corp., | ||||||||
8.375%, Due 5/1/2016 | 500 | 570 | ||||||
6.875%, Due 9/15/2033 | 725 | 696 | ||||||
Sprint Capital Corp., 8.75%, Due 3/15/2032 | 1,500 | 1,500 | ||||||
Sprint Nextel Corp., 8.375%, Due 8/15/2017 | 1,815 | 1,876 |
See accompanying notes
20
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Texas Competitive Electric Holdings Co. LLC, 10.25%, Due 11/1/2015 | $ | 2,500 | $ | 1,875 | ||||
Wind Acquisition Finance S.A., | ||||||||
12.00%, Due 12/1/2015 ‡ ¤ | 2,000 | 2,135 | ||||||
11.75%, Due 7/15/2017 ‡ | 45 | 50 | ||||||
12.25%, Due 7/15/2017 ‡ | 670 | 702 | ||||||
14,903 | ||||||||
Total Corporate Obligations | 231,526 | |||||||
CONVERTIBLE OBLIGATIONS — 0.45% | ||||||||
Finance — 0.16% | ||||||||
E*Trade Financial Corp., 12.50%, Due 8/31/2019 | 240 | 392 | ||||||
Hotels, Restaurants & Leisure — 0.29% | ||||||||
Horizon Lines, Inc., 4.25%, Due 8/15/2012 | 800 | 714 | ||||||
Total Convertible Obligations | 1,106 | |||||||
ASSET-BACKED SECURITIES — 0.26% | ||||||||
Discover Financial Services, 10.25%, Due 7/15/2019 | 525 | 644 | ||||||
Shares | ||||||||
SHORT TERM INVESTMENTS — 3.86% | ||||||||
JPMorgan U.S. Government Money Market Fund | 9,378,518 | 9,379 | ||||||
TOTAL INVESTMENTS — 100.39% (Cost $227,636) | $ | 244,206 | ||||||
LIABILITIES, NET OF OTHER ASSETS — (0.39%) | (950 | ) | ||||||
TOTAL NET ASSETS — 100.00% | $ | 243,256 | ||||||
Percentages are stated as a percent of net assets.
^ | Non-income producing security. | |
‡ | Security exempt from registration under the Securities Act of 1933. These securities may be resold to qualified institutional buyers pursuant to Rule 144A. At the period end, the value of these securities amounted to $100,114 or 41.16% of net assets. The Fund has no right to demand registration of these securities. | |
# | The coupon rate shown on floating or adjustable rate securities represents the rate at period end. The due date on these types of securities reflects the final maturity date. | |
§ | Non-income producing — Issuer is in default. | |
¤ | Step Up/Down |
See accompanying notes
21
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
COMMON STOCKS — 5.06% | ||||||||
CONSUMER DISCRETIONARY — 0.27% | ||||||||
Hotels, Restaurants & Leisure — 0.15% | ||||||||
Carnival Corp. | 4,200 | $ | 175 | |||||
Internet & Catalog Retail — 0.12% | ||||||||
eBay, Inc. ^ | 6,000 | 143 | ||||||
Total Consumer Discretionary | 318 | |||||||
ENERGY — 1.66% | ||||||||
Energy Equipment & Services — 0.64% | ||||||||
Ensco plc, ADR | 7,300 | 344 | ||||||
Noble Corp. | 10,150 | 401 | ||||||
745 | ||||||||
Oil & Gas — 1.02% | ||||||||
Apache Corp. | 4,250 | 433 | ||||||
Devon Energy Corp. | 6,050 | 407 | ||||||
Occidental Petroleum Corp. | 4,000 | 355 | ||||||
1,195 | ||||||||
Total Energy | 1,940 | |||||||
FINANCIALS — 0.64% | ||||||||
Banks — 0.24% | ||||||||
Bank of America Corp. | 8,000 | 143 | ||||||
JPMorgan Chase & Co. | 3,300 | 140 | ||||||
283 | ||||||||
Diversified Financials — 0.40% | ||||||||
Affiliated Managers Group, Inc. ^ | 2,300 | 194 | ||||||
T Rowe Price Group, Inc. | 4,800 | 276 | ||||||
470 | ||||||||
Total Financials | 753 | |||||||
HEALTH CARE — 0.89% | ||||||||
Health Care Equipment & Supplies — 0.53% | ||||||||
Medtronic, Inc. | 7,000 | 306 | ||||||
Stryker Corp. | 5,400 | 310 | ||||||
616 | ||||||||
Optical Supplies — 0.22% | ||||||||
Alcon, Inc. | 1,630 | 254 | ||||||
Pharmaceuticals — 0.14% | ||||||||
Merck & Co., Inc. | 4,777 | 167 | ||||||
Total Health Care | 1,037 | |||||||
INDUSTRIALS — 0.66% | ||||||||
Aerospace & Defense — 0.14% | ||||||||
United Technologies Corp. | 2,150 | 161 | ||||||
Machinery — 0.52% | ||||||||
Eaton Corp. | 3,900 | 301 | ||||||
Parker Hannifin Corp. ^ | 4,500 | 311 | ||||||
612 | ||||||||
Total Industrials | 773 | |||||||
INFORMATION TECHNOLOGY — 0.94% | ||||||||
Communications Equipment — 0.52% | ||||||||
Cisco Systems, Inc. ^ | 12,500 | 337 | ||||||
QUALCOMM, Inc. | 7,200 | 279 | ||||||
616 | ||||||||
Computers & Peripherals — 0.13% | ||||||||
SanDisk Corp. ^ | 3,700 | 151 | ||||||
IT Consulting & Services — 0.29% | ||||||||
Accenture plc | 7,770 | 339 | ||||||
Total Information Technology | 1,106 | |||||||
Total Common Stocks | 5,927 | |||||||
CONVERTIBLE PREFERRED | ||||||||
STOCKS — 1.06% | ||||||||
CONSUMER STAPLES — 0.24% | ||||||||
Food Products — 0.24% | ||||||||
Bunge Ltd. | 525 | 280 | ||||||
FINANCIALS — 0.57% | ||||||||
Banks — 0.57% | ||||||||
Bank of America Corp. | 385 | 378 | ||||||
Wells Fargo & Co. | 300 | 296 | ||||||
Total Financials | 674 | |||||||
HEALTH CARE — 0.25% | ||||||||
Pharmaceuticals — 0.25% | ||||||||
Mylan, Inc. | 225 | 288 | ||||||
Total Convertible Preferred Stocks | 1,242 | |||||||
PREFERRED STOCKS — 1.09% | ||||||||
CONSUMER DISCRETIONARY — 0.30% | ||||||||
Food Products — 0.30% | ||||||||
Archer-Daniels-Midland Co. | 8,850 | 350 | ||||||
See accompanying notes
22
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Shares | Value | |||||||
(dollars in thousands) | ||||||||
CONSUMER STAPLES — 0.32% | ||||||||
Food Products — 0.32% | ||||||||
Bunge Ltd. | 4,500 | $ | 382 | |||||
FINANCIALS — 0.47% | ||||||||
Diversified Financials — 0.47% | ||||||||
AMG Capital Trust I | 4,150 | 197 | ||||||
Vale Capital II | 4,000 | 349 | ||||||
Total Financials | 546 | |||||||
Total Preferred Stocks | 1,278 | |||||||
Par | ||||||||
Amount | ||||||||
AGENCIES — 0.52% | ||||||||
Agency — 0.52% | ||||||||
EDF SA, 4.60%, Due 1/27/2020 ‡ | $ | 300 | 300 | |||||
Petroleos Mexicanos, 6.00%, Due 3/5/2020 ‡ | 300 | 309 | ||||||
Total Agencies | 609 | |||||||
CORPORATE OBLIGATIONS — 37.18% | ||||||||
Finance — 16.63% | ||||||||
Aegon Funding Corp., 5.75%, Due 12/15/2020 | 250 | 250 | ||||||
ANZ National Int’l Ltd., 2.375%, Due 12/21/2012 ‡ | 300 | 303 | ||||||
Bank of America Corp., | ||||||||
7.80%, Due 9/15/2016 | 600 | 670 | ||||||
6.00%, Due 9/1/2017 | 400 | 415 | ||||||
7.625%, Due 6/1/2019 | 200 | 228 | ||||||
Bank One Corp., 4.90%, Due 4/30/2015 | 250 | 256 | ||||||
Barclays Bank plc, | ||||||||
3.90%, Due 4/7/2015 | 290 | 293 | ||||||
6.75%, Due 5/22/2019 | 300 | 337 | ||||||
BNP Paribas, 0.695%, Due 4/8/2013 # | 750 | 750 | ||||||
Citigroup, Inc., | ||||||||
0.529%, Due 11/5/2014 # | 300 | 279 | ||||||
6.125%, Due 11/21/2017 | 275 | 286 | ||||||
8.50%, Due 5/22/2019 | 750 | 885 | ||||||
CME Group, Inc., 5.40%, Due 8/1/2013 | 230 | 253 | ||||||
Credit Suisse N.Y., | ||||||||
3.45%, Due 7/2/2012 | 600 | 622 | ||||||
5.30%, Due 8/13/2019 | 250 | 262 | ||||||
Deutsche Bank AG, 3.875%, Due 8/18/2014 | 275 | 284 | ||||||
General Electric Capital Corp., | ||||||||
0.495%, Due 1/8/2016 # | 1,033 | 947 | ||||||
5.625%, Due 5/1/2018 | 250 | 265 | ||||||
6.00%, Due 8/7/2019 | 300 | 324 | ||||||
5.50%, Due 1/8/2020 | 350 | 365 | ||||||
Goldman Sachs Group, Inc., | ||||||||
5.35%, Due 1/15/2016 | 475 | 484 | ||||||
6.25%, Due 9/1/2017 | 550 | 576 | ||||||
Hartford Financial Services Group, Inc., 7.90%, Due 6/15/2010 | 280 | 282 | ||||||
HSBC Finance Corp., 5.25%, Due 1/14/2011 | 1,050 | 1,078 | ||||||
ING Bank, NV, 5.125%, Due 5/1/2015 ‡ | 300 | 314 | ||||||
Janus Capital Group, Inc., 6.95%, Due 6/15/2017 | 125 | 127 | ||||||
JP Morgan Chase & Co., | ||||||||
3.70%, Due 1/20/2015 | 1,450 | 1,480 | ||||||
6.00%, Due 1/15/2018 | 250 | 270 | ||||||
JP Morgan Chase Bank, NA, 0.587%, Due 6/13/2016 # | 375 | 352 | ||||||
Leucadia National Corp., 8.125%, Due 9/15/2015 | 100 | 105 | ||||||
Lincoln National Corp., 4.75%, Due 2/15/2014 | 105 | 108 | ||||||
Lloyds TSB Bank plc, 4.375%, Due 1/12/2015 ‡ | 300 | 298 | ||||||
MassMutual Global Funding II, 0.412%, Due 12/6/2013 ‡ # | 400 | 388 | ||||||
Mellon Funding Corp., 0.40%, Due 5/15/2014 # | 250 | 247 | ||||||
Merrill Lynch & Co., Inc., 6.11%, Due 1/29/2037 | 275 | 254 | ||||||
MetLife, Inc., 6.375%, Due 6/15/2034 | 250 | 267 | ||||||
Metropolitan Life Global Funding I, 0.507%, Due 3/15/2012 ‡ # | 300 | 296 | ||||||
Monumental Global Funding III, 0.503%, Due 1/15/2014 ‡ # | 300 | 286 | ||||||
Morgan Stanley, | ||||||||
0.783%, Due 10/15/2015 # | 300 | 278 | ||||||
7.30%, Due 5/13/2019 | 280 | 307 | ||||||
5.625%, Due 9/23/2019 | 250 | 247 | ||||||
Nordea Bank AB, 2.50%, Due 11/13/2012 ‡ | 250 | 253 | ||||||
Pricoa Global Funding I, 5.40%, Due 10/18/2012 ‡ | 150 | 162 |
See accompanying notes
23
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
ProLogis, 5.625%, Due 11/15/2016 | $ | 250 | $ | 247 | ||||
Prudential Financial, Inc., 4.50%, Due 7/15/2013 | 250 | 262 | ||||||
Rabobank Nederland NV, 4.20%, Due 5/13/2014 ‡ | 200 | 210 | ||||||
Simon Property Group LP, 10.35%, Due 4/1/2019 | 300 | 389 | ||||||
UBS AG, 5.875%, Due 12/20/2017 | 275 | 291 | ||||||
Wachovia Corp., | ||||||||
0.673%, Due 10/15/2016 # | 600 | 551 | ||||||
5.75%, Due 2/1/2018 | 475 | 511 | ||||||
Wells Fargo & Co., 5.625%, Due 12/11/2017 | 275 | 296 | ||||||
19,490 | ||||||||
Industrials — 18.81% | ||||||||
America Movil, S.A.B. de C.V., 6.375%, Due 3/1/2035 | 275 | 282 | ||||||
American Honda Finance Corp., 4.625%, Due 4/2/2013 ‡ | 325 | 346 | ||||||
Anheuser-Busch InBev Worldwide, Inc., | ||||||||
5.00%, Due 4/15/2020 ‡ | 290 | 294 | ||||||
8.00%, Due 11/15/2039 ‡ | 100 | 130 | ||||||
AT&T, Inc., | ||||||||
5.625%, Due 6/15/2016 | 200 | 222 | ||||||
5.50%, Due 2/1/2018 | 400 | 431 | ||||||
6.80%, Due 5/15/2036 | 125 | 137 | ||||||
6.40%, Due 5/15/2038 | 125 | 131 | ||||||
ATP Oil & Gas Corp., 11.875%, Due 5/1/2015 ‡ | 150 | 150 | ||||||
BAE Systems Holdings, Inc., 4.75%, Due 8/15/2010 ‡ | 700 | 707 | ||||||
BE Aerospace, Inc., 8.50%, Due 7/1/2018 | 325 | 348 | ||||||
Bio Rad Labs, 8.00%, Due 9/15/2016 | 275 | 294 | ||||||
Boeing Co., 1.875%, Due 11/20/2012 | 250 | 253 | ||||||
BP Capital Markets plc, 3.875%, Due 3/10/2015 | 200 | 209 | ||||||
Bristol-Myers Squibb Co., 5.45%, Due 5/1/2018 | 125 | 137 | ||||||
Burlington Northern Santa Fe LLC, 5.75%, Due 3/15/2018 | 325 | 354 | ||||||
Canadian National Railway Co., 5.55%, Due 5/15/2018 | 250 | 273 | ||||||
Canadian Natural Resources Ltd., 6.25%, Due 3/15/2038 | 275 | 290 | ||||||
Caterpillar Financial Services Corp., | ||||||||
1.90%, Due 12/17/2012 | 100 | 101 | ||||||
4.25%, Due 2/8/2013 | 250 | 265 | ||||||
Cisco Systems, Inc., 5.25%, Due 2/22/2011 | 250 | 259 | ||||||
Coca-Cola Enterprises, Inc., 7.375%, Due 3/3/2014 | 150 | 177 | ||||||
Comcast Cable Communications Holdings, Inc., 8.375%, Due 3/15/2013 | 109 | 127 | ||||||
Comcast Corp., 6.55%, Due 7/1/2039 | 300 | 317 | ||||||
Comstock Resources, Inc., 8.375%, Due 10/15/2017 | 300 | 310 | ||||||
Concho Resources, Inc., 8.625%, Due 10/1/2017 | 275 | 294 | ||||||
ConocoPhillips, | ||||||||
4.60%, Due 1/15/2015 | 200 | 216 | ||||||
5.20%, Due 5/15/2018 | 325 | 350 | ||||||
Covidien International Finance SA, 5.15%, Due 10/15/2010 | 600 | 612 | ||||||
Daimler Finance NA LLC, | ||||||||
5.875%, Due 3/15/2011 | 250 | 259 | ||||||
5.75%, Due 9/8/2011 | 250 | 264 | ||||||
Dell, Inc., 5.875%, Due 6/15/2019 | 70 | 78 | ||||||
Deutsche Telekom AG, 8.50%, Due 6/15/2010 | 480 | 484 | ||||||
EOG Resources Canada, Inc., 4.75%, Due 3/15/2014 ‡ | 250 | 264 | ||||||
France Telecom S.A., 4.375%, Due 7/8/2014 | 150 | 160 | ||||||
Frontier Oil Corp., 8.50%, Due 9/15/2016 | 250 | 258 | ||||||
FTI Consulting, Inc., 7.75%, Due 10/1/2016 | 150 | 154 | ||||||
Gardner Denver, Inc., 8.00%, Due 5/1/2013 | 300 | 302 | ||||||
GlaxoSmithKline Capital, Inc., 5.65%, Due 5/15/2018 | 125 | 138 | ||||||
Hanesbrands, Inc., 8.00%, Due 12/15/2016 | 300 | 313 | ||||||
Hewlett-Packard Co., 4.50%, Due 3/1/2013 | 325 | 350 | ||||||
Honeywell International, Inc., 4.25%, Due 3/1/2013 | 250 | 267 |
See accompanying notes
24
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
International Business Machines Corp., 7.625%, Due 10/15/2018 | $ | 150 | $ | 188 | ||||
Jabil Circuit, Inc., 8.25%, Due 3/15/2018 | 325 | 352 | ||||||
Jarden Corp., | ||||||||
7.50%, Due 5/1/2017 | 30 | 31 | ||||||
7.50%, Due 1/15/2020 | 120 | 123 | ||||||
JDA Software Group, Inc., 8.00%, Due 12/15/2014 ‡ | 20 | 21 | ||||||
Johnson Controls, Inc., 5.00%, Due 3/30/2020 | 300 | 306 | ||||||
Kansas City Southern Railway, 13.00%, Due 12/15/2013 | 210 | 251 | ||||||
Kellogg Co., 4.25%, Due 3/6/2013 | 250 | 266 | ||||||
Nationwide Building Society, 5.50%, Due 7/18/2012 ‡ | 450 | 483 | ||||||
NetFlix, Inc., 8.50%, Due 11/15/2017 | 275 | 293 | ||||||
Norfolk Southern Corp., 5.75%, Due 4/1/2018 | 325 | 354 | ||||||
Northrop Grumman Corp., 5.05%, Due 8/1/2019 | 150 | 157 | ||||||
Oshkosh Corp., | ||||||||
8.25%, Due 3/1/2017 ‡ | 50 | 53 | ||||||
8.50%, Due 3/1/2020 ‡ | 125 | 132 | ||||||
Petroplus Finance Ltd., 9.375%, Due 9/15/2019 ‡ | 225 | 215 | ||||||
Quest Diagnostics, Inc., 4.75%, Due 1/30/2020 | 250 | 249 | ||||||
Range Resources Corp., 8.00%, Due 5/15/2019 | 100 | 108 | ||||||
Raytheon Co., 5.375%, Due 4/1/2013 | 250 | 274 | ||||||
Royal Caribbean Cruises Ltd., 7.50%, Due 10/15/2027 | 500 | 462 | ||||||
Seagate Technology, 6.80%, Due 10/1/2016 | 350 | 355 | ||||||
Service Corp International, 8.00%, Due 11/15/2021 | 225 | 234 | ||||||
SESI LLC, 6.875%, Due 6/1/2014 | 435 | 433 | ||||||
Spirit Aerosystems, Inc., 7.50%, Due 10/1/2017 ‡ | 300 | 307 | ||||||
Swift Energy Co., 7.125%, Due 6/1/2017 | 375 | 367 | ||||||
Syniverse Technologies, Inc., 7.75%, Due 8/15/2013 | 325 | 330 | ||||||
Telefonica Emisiones SAU, 6.421%, Due 6/20/2016 | 300 | 335 | ||||||
Terex Corp., 8.00%, Due 11/15/2017 | 125 | 122 | ||||||
Thomson Reuters Corp., 4.70%, Due 10/15/2019 | 250 | 257 | ||||||
Time Warner Cable, Inc., 5.85%, Due 5/1/2017 | 300 | 325 | ||||||
Time Warner, Inc., 4.875%, Due 3/15/2020 | 150 | 149 | ||||||
Triumph Group, Inc., 8.00%, Due 11/15/2017 | 300 | 300 | ||||||
Tyco International Finance SA, 4.125%, Due 10/15/2014 | 125 | 131 | ||||||
Union Pacific Corp., 7.875%, Due 1/15/2019 | 300 | 367 | ||||||
United Technologies Corp., 6.125%, Due 7/15/2038 | 165 | 185 | ||||||
Verizon Communications, Inc., | ||||||||
5.50%, Due 4/1/2017 | 250 | 270 | ||||||
6.90%, Due 4/15/2038 | 325 | 369 | ||||||
Verizon Wireless Capital, LLC, 3.75%, Due 5/20/2011 | 270 | 278 | ||||||
Vodafone Group plc, 6.15%, Due 2/27/2037 | 275 | 286 | ||||||
Wal-Mart Stores, Inc., 7.55%, Due 2/15/2030 | 250 | 315 | ||||||
WESCO Distribution, Inc., 7.50%, Due 10/15/2017 | 450 | 445 | ||||||
Xerox Corp., | ||||||||
5.65%, Due 5/15/2013 | 75 | 80 | ||||||
8.25%, Due 5/15/2014 | 150 | 176 | ||||||
22,041 | ||||||||
Other Government — 0.27% | ||||||||
Province of Ontario Canada, 4.10%, Due 6/16/2014 | 300 | 318 | ||||||
Utilities — 1.47% | ||||||||
Consolidated Edison Co. of New York, Inc., 5.50%, Due 12/1/2039 | 300 | 299 | ||||||
Duke Energy Carolinas LLC, 5.10%, Due 4/15/2018 | 250 | 264 | ||||||
FirstEnergy Solutions Corp., 4.80%, Due 2/15/2015 | 150 | 155 | ||||||
MidAmerican Energy Holdings Co., 6.125%, Due 4/1/2036 | 275 | 287 | ||||||
Pacific Gas & Electric Co., 6.25%, Due 12/1/2013 | 175 | 198 |
See accompanying notes
25
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Progress Energy, Inc., 4.875%, Due 12/1/2019 | $ | 250 | $ | 250 | ||||
Virginia Electric and Power Co., 5.40%, Due 4/30/2018 | 250 | 271 | ||||||
1,724 | ||||||||
Total Corporate Obligations | 43,573 | |||||||
CONVERTIBLE OBLIGATIONS — 12.13% | ||||||||
Basic Materials — 1.43% | ||||||||
Allegheny Technologies, Inc., 4.25%, Due 6/1/2014 | 260 | 380 | ||||||
Goldcorp, Inc., 2.00%, Due 8/1/2014 ‡ | 225 | 268 | ||||||
Newmont Mining Corp., | ||||||||
3.00%, Due 2/15/2012 | 50 | 67 | ||||||
1.25%, Due 7/15/2014 | 425 | 570 | ||||||
1.625%, Due 7/15/2017 | 220 | 301 | ||||||
Sterlite Industries India Ltd., 4.00%, Due 10/30/2014 | 90 | 93 | ||||||
1,679 | ||||||||
Communications — 1.73% | ||||||||
Anixter International, Inc., 1.00%, Due 2/15/2013 | 410 | 412 | ||||||
Arris Group, Inc., 2.00%, Due 11/15/2026 | 240 | 243 | ||||||
priceline.com, Inc., 1.25%, Due 3/15/2015 ‡ | 300 | 320 | ||||||
Symantec Corp., | ||||||||
0.75%, Due 6/15/2011 | 150 | 158 | ||||||
1.00%, Due 6/15/2013 | 400 | 428 | ||||||
VeriSign, Inc., 3.25%, Due 8/15/2037 | 500 | 471 | ||||||
2,032 | ||||||||
Consumer Discretionary — 1.07% | ||||||||
Archer-Daniels-Midland Co., 0.875%, Due 2/15/2014 | 430 | 423 | ||||||
Best Buy Co., Inc., 2.25%, Due 1/15/2022 | 200 | 227 | ||||||
Carnival Corp., 2.00%, Due 4/15/2021 | 135 | 152 | ||||||
International Game Technology, 3.25%, Due 5/1/2014 ‡ | 110 | 140 | ||||||
RadioShack Corp., 2.50%, Due 8/1/2013 ‡ | 275 | 308 | ||||||
1,250 | ||||||||
Consumer Staples — 0.28% | ||||||||
Kinetic Concepts, Inc., 3.25%, Due 4/15/2015 ‡ | 310 | 328 | ||||||
Energy — 0.59% | ||||||||
Cameron International Corp., | ||||||||
2.50%, Due 6/15/2026 | 180 | 227 | ||||||
2.50%, Due 5/15/2037 | 570 | 467 | ||||||
694 | ||||||||
Finance — 0.47% | ||||||||
Janus Capital Group, Inc., 3.25%, Due 7/15/2014 | 190 | 235 | ||||||
Leucadia National Corp., 3.75%, Due 4/15/2014 | 250 | 315 | ||||||
550 | ||||||||
Health Care — 1.18% | ||||||||
Biovail Corp., 5.375%, Due 8/1/2014 ‡ | 350 | 452 | ||||||
LifePoint Hospitals, Inc., 3.50%, Due 5/15/2014 | 325 | 337 | ||||||
Medtronic, Inc., 1.625%, Due 4/15/2013 | 560 | 593 | ||||||
1,382 | ||||||||
Industrials — 0.93% | ||||||||
Danaher Corp., Zero Coupon, Due 1/22/2021 | 370 | 450 | ||||||
Fisher Scientific International, Inc., 3.25%, Due 3/1/2024 | 230 | 325 | ||||||
ON Semiconductor Corp., 2.625%, Due 12/15/2026 | 300 | 309 | ||||||
1,084 | ||||||||
Pharmaceuticals — 1.09% | ||||||||
Charles River Laboratories International, Inc., 2.25%, Due 6/15/2013 | 140 | 136 | ||||||
Life Technologies Corp., 1.50%, Due 2/15/2024 | 246 | 293 | ||||||
Mylan, Inc., 1.25%, Due 3/15/2012 | 430 | 476 | ||||||
Teva Pharmaceutical Finance Co. LLC, 0.25%, Due 2/1/2026 | 295 | 371 | ||||||
1,276 | ||||||||
Technology — 3.36% | ||||||||
CACI International, Inc., 2.125%, Due 5/1/2014 | 230 | 238 | ||||||
EMC Corp., 1.75%, Due 12/1/2013 | 715 | 931 |
See accompanying notes
26
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Intel Corp., 3.25%, Due 8/1/2039 ‡ | $ | 200 | $ | 245 | ||||
Linear Technology Corp., 3.00%, Due 5/1/2027 | 295 | 294 | ||||||
Maxtor Corp., 2.375%, Due 8/15/2012 | 120 | 140 | ||||||
Micron Technology, Inc., 1.875%, Due 6/1/2014 | 300 | 278 | ||||||
Navistar International Corp., 3.00%, Due 10/15/2014 | 300 | 352 | ||||||
NetApp, Inc., 1.75%, Due 6/1/2013 | 545 | 677 | ||||||
Rovi Corp., 2.625%, Due 2/15/2040 ‡ | 300 | 312 | ||||||
SanDisk Corp., 1.00%, Due 5/15/2013 | 175 | 155 | ||||||
Sybase, Inc., 3.50%, Due 8/15/2029 ‡ | 280 | 321 | ||||||
3,943 | ||||||||
Total Convertible Obligations | 14,218 | |||||||
MUNICIPAL SECURITIES — 0.17% | ||||||||
Municipal Obligations — 0.17% | ||||||||
State of Illinois, 1.823%, Due 1/1/2011 | 200 | 200 | ||||||
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS — 2.20% | ||||||||
Commercial Mortgage Backed Securities — 2.20% | ||||||||
Banc of America Commercial Mortgage, Inc., | ||||||||
2005-6 A1, 5.001%, Due 9/10/2047 | 209 | 210 | ||||||
2007-2 A2, 5.634%, Due 4/10/2049 | 650 | 675 | ||||||
JP Morgan Chase Commercial Mortgage Securities Corp., | ||||||||
2007-CB19 A4, 5.937%, Due 2/12/2049 | 400 | 405 | ||||||
2007-CB20 A2, 5.629%, Due 2/12/2051 | 550 | 568 | ||||||
LB-UBS Commercial Mortgage Trust, 2007-C1 A4, 5.424%, Due 2/15/2040 | 450 | 445 | ||||||
Wachovia Bank Commercial Mortgage Trust, 2007-C32 A2, 5.924%, Due 6/15/2049 | 260 | 268 | ||||||
Total Non-Agency Mortgage-Backed Obligations | 2,571 | |||||||
ASSET-BACKED SECURITIES — 5.38% | ||||||||
American Express Credit Account Master Trust, 2006-2 A, 5.35%, Due 1/15/2014 | 1,050 | 1,103 | ||||||
Bank of America Auto Trust, 2010-1A A2, 0.75%, Due 6/15/2012 ‡ | 600 | 600 | ||||||
BMW Floorplan Master Owner Trust, 2009-1A A, 1.404%, Due 9/15/2014 ‡ # | 250 | 250 | ||||||
Capital One Multi-Asset Execution Trust, 2006-A10 A10, 5.15%, Due 6/15/2014 | 800 | 843 | ||||||
Citibank Credit Card Issuance Trust, 2009-A2 A2, 1.804%, Due 5/15/2014 # | 600 | 616 | ||||||
Discover Card Master Trust, 2009-A2 A, 1.53%, Due 2/17/2015 # | 200 | 204 | ||||||
Ford Credit Auto Lease Trust, 2010-A A2, 1.04%, Due 3/15/2013 ‡ | 900 | 900 | ||||||
Ford Credit Floorplan Master Owner Trust, 2009-2 A, 1.804%, Due 9/15/2014 # | 250 | 252 | ||||||
Harley-Davidson Motorcycle Trust, 2009-4 A3, 1.87%, Due 2/15/2014 | 300 | 303 | ||||||
Nissan Master Owner Trust Receivables, 2010-2A A, 1.404%, Due 1/15/2015 ‡ # | 600 | 602 | ||||||
Volkswagen Auto Loan Enhanced Trust, | ||||||||
2010-1 A2, 0.66%, Due 5/21/2012 | 300 | 300 | ||||||
2008-2 A4A, 6.24%, Due 7/20/2015 | 300 | 332 | ||||||
Total Asset-Backed Securities | 6,305 | |||||||
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS — 12.75% | ||||||||
Federal Home Loan Mortgage Corporation — 5.09% | ||||||||
5.00%, Due 2/1/2021 | 723 | 771 | ||||||
4.50%, Due 4/1/2021 | 739 | 778 | ||||||
5.00%, Due 9/1/2035 | 1,811 | 1,884 | ||||||
5.50%, Due 4/1/2037 | 543 | 574 | ||||||
5.00%, Due 3/1/2038 | 1,215 | 1,260 | ||||||
5.50%, Due 5/1/2038 | 658 | 696 | ||||||
5,963 | ||||||||
Federal National Mortgage Association — 5.34% | ||||||||
6.50%, Due 7/1/2032 | 294 | 324 | ||||||
5.50%, Due 6/1/2033 | 674 | 715 | ||||||
4.50%, Due 9/1/2034 | 364 | 371 | ||||||
5.50%, Due 12/1/2035 | 758 | 801 | ||||||
5.00%, Due 2/1/2036 | 611 | 636 | ||||||
5.50%, Due 4/1/2036 | 1,093 | 1,156 | ||||||
5.50%, Due 2/1/2037 | 831 | 877 | ||||||
6.00%, Due 9/1/2037 | 548 | 583 | ||||||
6.00%, Due 1/1/2038 | 752 | 801 | ||||||
6,264 | ||||||||
Government National Mortgage Association — 2.32% | ||||||||
4.201%, Due 8/16/2026 | 398 | 407 | ||||||
6.00%, Due 2/15/2033 | 638 | 695 | ||||||
5.50%, Due 4/15/2033 | 878 | 940 |
See accompanying notes
27
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
5.00%, Due 5/15/2033 | $ | 642 | $ | 675 | ||||
2,717 | ||||||||
Total U.S. Agency Mortgage-Backed Obligations | 14,944 | |||||||
U.S. AGENCY OBLIGATIONS - 1.34% | ||||||||
Federal Farm Credit Bank - 1.23% | ||||||||
3.00%, Due 9/22/2014 | 1,400 | 1,433 | ||||||
Tennessee Valley Authority - 0.11% | ||||||||
5.25%, Due 9/15/2039 | 130 | 132 | ||||||
Total U.S. Agency Obligations | 1,565 | |||||||
U.S. TREASURY OBLIGATIONS - 15.94% | ||||||||
4.25%, Due 8/15/2015 | 1,500 | 1,631 | ||||||
3.00%, Due 9/30/2016 | 1,750 | 1,753 | ||||||
3.125%, Due 10/31/2016 | 3,800 | 3,828 | ||||||
3.75%, Due 11/15/2018 | 2,550 | 2,605 | ||||||
3.625%, Due 2/15/2020 | 3,350 | 3,340 | ||||||
7.875%, Due 2/15/2021 | 300 | 409 | ||||||
6.25%, Due 8/15/2023 | 1,500 | 1,835 | ||||||
6.875%, Due 8/15/2025 | 250 | 326 | ||||||
5.25%, Due 11/15/2028 | 1,050 | 1,171 | ||||||
4.75%, Due 2/15/2037 | 420 | 438 | ||||||
4.50%, Due 8/15/2039 | 1,350 | 1,343 | ||||||
Total U.S. Treasury Obligations | 18,679 | |||||||
Shares | ||||||||
SHORT TERM INVESTMENTS - 4.33% | ||||||||
JPMorgan U.S. Government Money Market | ||||||||
Fund | 2,076,096 | 2,076 |
Par | ||||||||
Amount | ||||||||
U.S. Treasury, | ||||||||
0.22%, Due 10/21/2010 | $ | 3,000 | 2,997 | |||||
Total Short Term Investments | 5,073 | |||||||
TOTAL INVESTMENTS 99.15% — (Cost $110,991) | 116,184 | |||||||
OTHER ASSETS, NET OF LIABILITIES - 0.85% | 999 | |||||||
TOTAL NET ASSETS - 100.00% | $ | 117,183 | ||||||
Percentages are stated as a percent of net assets.
^ | Non-income producing security. | |
‡ | Security exempt from registration under the Securities Act of 1933. These securities may be resold to qualified institutional buyers pursuant to Rule 144A. At the period end, the value of these securities amounted to $11,267 or 9.61% of net assets. The Fund has no right to demand registration of these securities. | |
# | The coupon rate shown on floating or adjustable rate securities represents the rate at period end. The due date on these types of securities reflects the final maturity date. |
See accompanying notes
28
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
AGENCIES — 0.38% | ||||||||
Agency — 0.38% | ||||||||
EDF SA, 4.60%, Due 1/27/2020 ‡ | $ | 380 | $ | 380 | ||||
Petrobras International Finance Co., 6.875%, Due 1/20/2040 | 110 | 114 | ||||||
Petroleos Mexicanos, 6.00%, Due 3/5/2020 ‡ | 375 | 386 | ||||||
Total Agencies | 880 | |||||||
CORPORATE OBLIGATIONS — 43.41% | ||||||||
Finance — 18.08% | ||||||||
Aegon Funding Corp., 5.75%, Due 12/15/2020 | 400 | 399 | ||||||
American Express Co., 8.15%, Due 3/19/2038 | 325 | 428 | ||||||
American Express Credit Corp., 5.875%, Due 5/2/2013 | 610 | 667 | ||||||
Ameriprise Financial, Inc., 5.35%, Due 11/15/2010 | 730 | 747 | ||||||
ANZ National Int’l Ltd., 2.375%, Due 12/21/2012 ‡ | 350 | 353 | ||||||
Bank of America Corp., | ||||||||
7.80%, Due 9/15/2016 | 700 | 782 | ||||||
6.00%, Due 9/1/2017 | 200 | 208 | ||||||
7.625%, Due 6/1/2019 | 800 | 913 | ||||||
Bank of New York Mellon Corp., 4.95%, Due 11/1/2012 | 290 | 314 | ||||||
Bank One Corp., 4.90%, Due 4/30/2015 | 500 | 511 | ||||||
Barclays Bank plc, | ||||||||
3.90%, Due 4/7/2015 | 380 | 384 | ||||||
6.75%, Due 5/22/2019 | 350 | 393 | ||||||
Bear Stearns Cos., Inc., | ||||||||
6.40%, Due 10/2/2017 | 605 | 669 | ||||||
7.25%, Due 2/1/2018 | 270 | 311 | ||||||
Berkshire Hathaway Finance Corp., 5.75%, Due 1/15/2040 | 325 | 330 | ||||||
Berkshire Hathaway, Inc., 1.40%, Due 2/10/2012 | 1,900 | 1,914 | ||||||
BNP Paribas, 0.695%, Due 4/8/2013 # | 950 | 950 | ||||||
Citigroup, Inc., | ||||||||
0.529%, Due 11/5/2014 # | 380 | 353 | ||||||
6.01%, Due 1/15/2015 | 520 | 554 | ||||||
6.125%, Due 11/21/2017 | 755 | 784 | ||||||
8.50%, Due 5/22/2019 | 1,100 | 1,299 | ||||||
CME Group, Inc., | ||||||||
5.40%, Due 8/1/2013 | 260 | 286 | ||||||
5.75%, Due 2/15/2014 | 510 | 564 | ||||||
CNA Financial Corp., 7.35%, Due 11/15/2019 | 210 | 224 | ||||||
Countrywide Financial Corp., 5.80%, Due 6/7/2012 | 210 | 223 | ||||||
Credit Suisse N.Y., | ||||||||
3.45%, Due 7/2/2012 | 700 | 726 | ||||||
5.30%, Due 8/13/2019 | 425 | 445 | ||||||
Deutsche Bank AG, 3.875%, Due 8/18/2014 | 400 | 414 | ||||||
General Electric Capital Corp., 5.25%, Due 10/19/2012 | 245 | 264 |
See accompanying notes
29
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
General Electric Capital Corp., | ||||||||
0.495%, Due 1/8/2016 # | $ | 1,300 | $ | 1,192 | ||||
5.625%, Due 5/1/2018 | 695 | 736 | ||||||
6.00%, Due 8/7/2019 | 350 | 378 | ||||||
5.50%, Due 1/8/2020 | 400 | 417 | ||||||
5.875%, Due 1/14/2038 | 645 | 638 | ||||||
Goldman Sachs Group, Inc., | ||||||||
5.125%, Due 1/15/2015 | 245 | 253 | ||||||
5.35%, Due 1/15/2016 | 800 | 815 | ||||||
6.25%, Due 9/1/2017 | 800 | 837 | ||||||
5.95%, Due 1/18/2018 | 215 | 221 | ||||||
6.75%, Due 10/1/2037 | 245 | 238 | ||||||
Hartford Financial Services Group, Inc., 7.90%, Due 6/15/2010 | 350 | 353 | ||||||
HSBC Finance Corp., 5.25%, Due 1/14/2011 | 1,550 | 1,591 | ||||||
ING Bank, NV, 5.125%, Due 5/1/2015 ‡ | 250 | 262 | ||||||
John Hancock Global Funding II, 7.90%, Due 7/2/2010 ‡ | 700 | 707 | ||||||
JP Morgan Chase & Co., | ||||||||
3.70%, Due 1/20/2015 | 2,330 | 2,378 | ||||||
6.00%, Due 1/15/2018 | 250 | 270 | ||||||
JP Morgan Chase Bank, NA, 0.587%, Due 6/13/2016 # | 480 | 451 | ||||||
Lincoln National Corp., 4.75%, Due 2/15/2014 | 50 | 52 | ||||||
Lloyds TSB Bank plc, 4.375%, Due 1/12/2015 ‡ | 375 | 372 | ||||||
MassMutual Global Funding II, 0.412%, Due 12/6/2013 ‡ # | 500 | 484 | ||||||
Mellon Funding Corp., 0.40%, Due 5/15/2014 # | 500 | 493 | ||||||
Merrill Lynch & Co., Inc., | ||||||||
6.40%, Due 8/28/2017 | 905 | 950 | ||||||
6.50%, Due 7/15/2018 | 520 | 543 | ||||||
6.11%, Due 1/29/2037 | 360 | 333 | ||||||
MetLife, Inc., | ||||||||
5.375%, Due 12/15/2012 | 240 | 260 | ||||||
6.375%, Due 6/15/2034 | 400 | 427 | ||||||
Metropolitan Life Global Funding I, 0.507%, Due 3/15/2012 ‡ # | 380 | 375 | ||||||
Monumental Global Funding III, 0.503%, Due 1/15/2014 ‡ # | 375 | 358 | ||||||
Morgan Stanley, | ||||||||
0.783%, Due 10/15/2015 # | 380 | 353 | ||||||
7.30%, Due 5/13/2019 | 370 | 406 | ||||||
5.625%, Due 9/23/2019 | 400 | 395 | ||||||
Nasdaq OMX Group, | ||||||||
4.00%, Due 1/15/2015 | 165 | 166 | ||||||
5.55%, Due 1/15/2020 | 165 | 167 | ||||||
Nordea Bank AB, 2.50%, Due 11/13/2012 ‡ | 400 | 405 | ||||||
PNC Funding Corp., 4.25%, Due 9/21/2015 | 390 | 403 | ||||||
Pricoa Global Funding I, 5.40%, Due 10/18/2012 ‡ | 175 | 189 | ||||||
ProLogis, 5.625%, Due 11/15/2016 | 200 | 198 |
See accompanying notes
30
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Prudential Financial, Inc., | ||||||||
4.50%, Due 7/15/2013 | $ | 200 | $ | 210 | ||||
5.10%, Due 9/20/2014 | 280 | 300 | ||||||
Rabobank Nederland NV, 4.20%, Due 5/13/2014 ‡ | 600 | 630 | ||||||
Simon Property Group LP, 10.35%, Due 4/1/2019 | 375 | 486 | ||||||
State Street Corp., 4.30%, Due 5/30/2014 | 260 | 275 | ||||||
UBS AG, 5.875%, Due 12/20/2017 | 400 | 423 | ||||||
UnitedHealth Group, Inc., 5.25%, Due 3/15/2011 | 820 | 849 | ||||||
Wachovia Corp., | ||||||||
0.673%, Due 10/15/2016 # | 750 | 689 | ||||||
5.75%, Due 2/1/2018 | 750 | 807 | ||||||
Wells Fargo & Co., 5.625%, Due 12/11/2017 | 475 | 512 | ||||||
Westpac Banking Corp., 2.25%, Due 11/19/2012 | 375 | 379 | ||||||
Willis North America, Inc., 6.20%, Due 3/28/2017 | 280 | 287 | ||||||
41,322 | ||||||||
Industrials — 20.26% | ||||||||
Alltel Corp., 7.00%, Due 7/1/2012 | 215 | 239 | ||||||
Altria Group, Inc., 9.70%, Due 11/10/2018 | 275 | 346 | ||||||
America Movil, S.A.B. de C.V., 6.375%, Due 3/1/2035 | 375 | 385 | ||||||
American Honda Finance Corp., 4.625%, Due 4/2/2013 ‡ | 250 | 266 | ||||||
Anheuser-Busch InBev Worldwide, Inc., | ||||||||
3.00%, Due 10/15/2012 | 390 | 401 | ||||||
5.00%, Due 4/15/2020 ‡ | 380 | 385 | ||||||
8.00%, Due 11/15/2039 ‡ | 175 | 227 | ||||||
AT&T Wireless Services, Inc., 8.75%, Due 3/1/2031 | 335 | 442 | ||||||
AT&T, Inc., | ||||||||
5.10%, Due 9/15/2014 | 755 | 824 | ||||||
5.625%, Due 6/15/2016 | 400 | 444 | ||||||
5.50%, Due 2/1/2018 | 300 | 323 | ||||||
6.80%, Due 5/15/2036 | 225 | 246 | ||||||
6.40%, Due 5/15/2038 | 200 | 210 | ||||||
BAE Systems Holdings, Inc., 4.75%, Due 8/15/2010 ‡ | 800 | 808 | ||||||
Baxter International, Inc., 1.80%, Due 3/15/2013 | 210 | 210 | ||||||
Best Buy Co., Inc., 6.75%, Due 7/15/2013 | 345 | 386 | ||||||
Boeing Co., 1.875%, Due 11/20/2012 | 400 | 405 | ||||||
BP Capital Markets plc, | ||||||||
3.125%, Due 3/10/2012 | 520 | 538 | ||||||
3.875%, Due 3/10/2015 | 600 | 628 | ||||||
Bristol-Myers Squibb Co., 5.45%, Due 5/1/2018 | 125 | 137 | ||||||
Burlington Northern Santa Fe LLC, | ||||||||
5.75%, Due 3/15/2018 | 250 | 272 | ||||||
7.95%, Due 8/15/2030 | 180 | 224 | ||||||
CA, Inc., 5.375%, Due 12/1/2019 | 370 | 386 | ||||||
Cameron International Corp., 6.375%, Due 7/15/2018 | 125 | 133 |
See accompanying notes
31
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Canadian National Railway Co., | ||||||||
5.55%, Due 5/15/2018 | $ | 400 | $ | 437 | ||||
5.55%, Due 3/1/2019 | 165 | 181 | ||||||
Canadian Natural Resources Ltd., | ||||||||
6.70%, Due 7/15/2011 | 400 | 426 | ||||||
6.25%, Due 3/15/2038 | 360 | 379 | ||||||
Caterpillar Financial Services Corp., | ||||||||
4.85%, Due 12/7/2012 | 470 | 507 | ||||||
1.90%, Due 12/17/2012 | 100 | 101 | ||||||
4.25%, Due 2/8/2013 | 250 | 265 | ||||||
Cisco Systems, Inc., 5.25%, Due 2/22/2011 | 200 | 207 | ||||||
Coca-Cola Enterprises, Inc., 7.375%, Due 3/3/2014 | 175 | 206 | ||||||
Comcast Cable Communications Holdings, Inc., 8.375%, Due 3/15/2013 | 128 | 149 | ||||||
Comcast Corp., | ||||||||
6.30%, Due 11/15/2017 | 465 | 515 | ||||||
5.875%, Due 2/15/2018 | 235 | 253 | ||||||
6.55%, Due 7/1/2039 | 350 | 370 | ||||||
Computer Sciences Corp., 5.50%, Due 3/15/2013 | 280 | 302 | ||||||
ConocoPhillips, | ||||||||
4.60%, Due 1/15/2015 | 1,060 | 1,146 | ||||||
5.20%, Due 5/15/2018 | 250 | 269 | ||||||
5.75%, Due 2/1/2019 | 380 | 424 | ||||||
Costco Wholesale Corp., 5.30%, Due 3/15/2012 | 645 | 692 | ||||||
Covidien International Finance SA, | ||||||||
5.15%, Due 10/15/2010 | 750 | 765 | ||||||
5.45%, Due 10/15/2012 | 120 | 131 | ||||||
CRH America, Inc., 6.00%, Due 9/30/2016 | 370 | 405 | ||||||
Daimler Finance NA LLC, | ||||||||
5.875%, Due 3/15/2011 | 300 | 311 | ||||||
5.75%, Due 9/8/2011 | 200 | 211 | ||||||
Dell, Inc., | ||||||||
3.375%, Due 6/15/2012 | 235 | 245 | ||||||
5.875%, Due 6/15/2019 | 90 | 100 | ||||||
Deutsche Telekom AG, 8.50%, Due 6/15/2010 | 611 | 616 | ||||||
DIRECTV Holdings LLC, | ||||||||
3.55%, Due 3/15/2015 ‡ | 475 | 474 | ||||||
6.35%, Due 3/15/2040 ‡ | 145 | 150 | ||||||
E. I. du Pont de Nemours & Co., 5.875%, Due 1/15/2014 | 395 | 443 | ||||||
Eaton Corp., 5.60%, Due 5/15/2018 | 280 | 301 | ||||||
EI Du Pont de Nemours & Co., 3.25%, Due 1/15/2015 | 660 | 674 | ||||||
EOG Resources Canada, Inc., 4.75%, Due 3/15/2014 ‡ | 400 | 423 | ||||||
Equity Residential, 5.125%, Due 3/15/2016 | 425 | 442 | ||||||
Express Scripts, Inc., 6.25%, Due 6/15/2014 | 480 | 538 | ||||||
France Telecom S.A., 4.375%, Due 7/8/2014 | 415 | 444 | ||||||
GlaxoSmithKline Capital, Inc., 5.65%, Due 5/15/2018 | 125 | 139 |
See accompanying notes
32
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Hewlett-Packard Co., | ||||||||
4.25%, Due 2/24/2012 | $ | 440 | $ | 465 | ||||
4.50%, Due 3/1/2013 | 250 | 269 | ||||||
6.125%, Due 3/1/2014 | 310 | 352 | ||||||
Honeywell International, Inc., 4.25%, Due 3/1/2013 | 770 | 824 | ||||||
Hospira, Inc., 6.05%, Due 3/30/2017 | 205 | 225 | ||||||
International Business Machines Corp., | ||||||||
4.75%, Due 11/29/2012 | 325 | 352 | ||||||
7.625%, Due 10/15/2018 | 695 | 871 | ||||||
ITT Corp., 4.90%, Due 5/1/2014 | 640 | 687 | ||||||
John Deere Capital Corp., 4.90%, Due 9/9/2013 | 650 | 710 | ||||||
Johnson Controls, Inc., 5.00%, Due 3/30/2020 | 545 | 556 | ||||||
Kellogg Co., 4.25%, Due 3/6/2013 | 250 | 266 | ||||||
Kerr-McGee Corp., 6.95%, Due 7/1/2024 | 325 | 367 | ||||||
Koninklijke Philips Electronics NV, 5.75%, Due 3/11/2018 | 165 | 181 | ||||||
Kraft Foods, Inc., 6.50%, Due 2/9/2040 | 220 | 237 | ||||||
L-3 Communications Corp., 5.20%, Due 10/15/2019 ‡ | 160 | 164 | ||||||
Lorillard Tobacco Co., 8.125%, Due 6/23/2019 | 255 | 288 | ||||||
Lowe’s Companies, Inc., | ||||||||
5.50%, Due 10/15/2035 | 300 | 298 | ||||||
6.65%, Due 9/15/2037 | 130 | 149 | ||||||
Marathon Oil Corp., 6.00%, Due 10/1/2017 | 275 | 301 | ||||||
Mead Johnson Nutrition Co., 4.90%, Due 11/1/2019 ‡ | 275 | 278 | ||||||
Medtronic, Inc., 3.00%, Due 3/15/2015 | 965 | 975 | ||||||
Nationwide Building Society, 5.50%, Due 7/18/2012 ‡ | 550 | 590 | ||||||
Norfolk Southern Corp., 5.75%, Due 4/1/2018 | 250 | 273 | ||||||
Northrop Grumman Corp., 5.05%, Due 8/1/2019 | 200 | 209 | ||||||
Novartis Capital Corp., | ||||||||
1.90%, Due 4/24/2013 | 630 | 632 | ||||||
4.125%, Due 2/10/2014 | 395 | 421 | ||||||
Pfizer, Inc., 4.45%, Due 3/15/2012 | 565 | 598 | ||||||
Quest Diagnostics, Inc., 4.75%, Due 1/30/2020 | 665 | 663 | ||||||
Raytheon Co., | ||||||||
5.375%, Due 4/1/2013 | 200 | 219 | ||||||
4.40%, Due 2/15/2020 | 390 | 395 | ||||||
Rogers Communications, Inc., 6.80%, Due 8/15/2018 | 250 | 288 | ||||||
Safeway, Inc., 6.25%, Due 3/15/2014 | 460 | 516 | ||||||
Simon Property Group LP, 5.75%, Due 12/1/2015 | 370 | 400 | ||||||
Telecom Italia Capital SA, 4.95%, Due 9/30/2014 | 395 | 407 | ||||||
Telefonica Emisiones SAU, | ||||||||
5.984%, Due 6/20/2011 | 390 | 410 | ||||||
4.949%, Due 1/15/2015 | 425 | 451 | ||||||
6.421%, Due 6/20/2016 | 350 | 391 | ||||||
Thermo Fisher Scientific, Inc., 3.20%, Due 5/1/2015 | 230 | 231 | ||||||
Thomson Reuters Corp., 4.70%, Due 10/15/2019 | 400 | 411 |
See accompanying notes
33
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Time Warner Cable, Inc., | ||||||||
8.25%, Due 2/14/2014 | $ | 330 | $ | 390 | ||||
5.85%, Due 5/1/2017 | 350 | 379 | ||||||
6.75%, Due 7/1/2018 | 375 | 425 | ||||||
Time Warner, Inc., 4.875%, Due 3/15/2020 | 190 | 188 | ||||||
Tyco Electronics Group SA, 6.55%, Due 10/1/2017 | 225 | 252 | ||||||
Tyco International Finance SA, | ||||||||
4.125%, Due 10/15/2014 | 200 | 209 | ||||||
8.50%, Due 1/15/2019 | 320 | 406 | ||||||
Union Pacific Corp., 7.875%, Due 1/15/2019 | 350 | 428 | ||||||
United Technologies Corp., | ||||||||
6.125%, Due 2/1/2019 | 155 | 178 | ||||||
6.125%, Due 7/15/2038 | 125 | 140 | ||||||
Valero Energy Corp., | ||||||||
9.375%, Due 3/15/2019 | 170 | 209 | ||||||
6.625%, Due 6/15/2037 | 205 | 206 | ||||||
Verizon Communications, Inc., | ||||||||
5.50%, Due 4/1/2017 | 400 | 432 | ||||||
6.90%, Due 4/15/2038 | 400 | 454 | ||||||
Verizon Wireless Capital, LLC, | ||||||||
3.75%, Due 5/20/2011 | 370 | 381 | ||||||
8.50%, Due 11/15/2018 | 435 | 550 | ||||||
Vodafone Group plc, 6.15%, Due 2/27/2037 | 360 | 375 | ||||||
Wal-Mart Stores, Inc., 7.55%, Due 2/15/2030 | 400 | 505 | ||||||
Waste Management, Inc., | ||||||||
7.375%, Due 3/11/2019 | 270 | 321 | ||||||
6.125%, Due 11/30/2039 | 130 | 135 | ||||||
Wyeth Corp., 5.50%, Due 2/1/2014 | 590 | 655 | ||||||
Xerox Corp., | ||||||||
5.65%, Due 5/15/2013 | 50 | 54 | ||||||
8.25%, Due 5/15/2014 | 190 | 223 | ||||||
46,321 | ||||||||
Other Government — 0.16% | ||||||||
Province of Ontario Canada, 4.10%, Due 6/16/2014 | 350 | 371 | ||||||
Utilities — 4.91% | ||||||||
Columbus Southern Power Co., 5.50%, Due 3/1/2013 | 495 | 537 | ||||||
Consolidated Edison Co. of New York, Inc., 5.50%, Due 12/1/2039 | 350 | 349 | ||||||
Dominion Resources, Inc., | ||||||||
Series A, 5.60%, Due 11/15/2016 | 475 | 519 | ||||||
Series D, 8.875%, Due 1/15/2019 | 80 | 103 | ||||||
Duke Energy Carolinas LLC, 5.10%, Due 4/15/2018 | 400 | 422 | ||||||
Duke Energy Indiana, Inc., 6.05%, Due 6/15/2016 | 355 | 396 | ||||||
Energy Transfer Partners LP, | ||||||||
8.50%, Due 4/15/2014 | 520 | 611 |
See accompanying notes
34
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
9.00%, Due 4/15/2019 | $ | 300 | $ | 375 | ||||
Enterprise Products Operating LLC, | ||||||||
5.65%, Due 4/1/2013 | 490 | 530 | ||||||
6.125%, Due 10/15/2039 | 255 | 261 | ||||||
Exelon Generation Co. LLC, 6.25%, Due 10/1/2039 | 365 | 381 | ||||||
FirstEnergy Solutions Corp., 4.80%, Due 2/15/2015 | 175 | 181 | ||||||
MidAmerican Energy Holdings Co., | ||||||||
5.875%, Due 10/1/2012 | 505 | 553 | ||||||
6.125%, Due 4/1/2036 | 375 | 391 | ||||||
Pacific Gas & Electric Co., 6.25%, Due 12/1/2013 | 150 | 169 | ||||||
Progress Energy, Inc., 4.875%, Due 12/1/2019 | 400 | 400 | ||||||
Public Service Enterprise Group, Inc., 6.95%, Due 6/1/2012 | 590 | 650 | ||||||
Sempra Energy, 6.50%, Due 6/1/2016 | 285 | 324 | ||||||
Southern Power Co., 6.25%, Due 7/15/2012 | 550 | 602 | ||||||
Spectra Energy Capital Corp., 5.65%, Due 3/1/2020 | 265 | 279 | ||||||
Spectra Energy Capital LLC, 5.668%, Due 8/15/2014 | 255 | 276 | ||||||
TransCanada PipeLines Ltd., 7.625%, Due 1/15/2039 | 520 | 648 | ||||||
Union Electric Co., 6.70%, Due 2/1/2019 | 370 | 421 | ||||||
Virginia Electric and Power Co., 5.40%, Due 4/30/2018 | 400 | 433 | ||||||
Westar Energy, Inc., 6.00%, Due 7/1/2014 | 200 | 223 | ||||||
Wisconsin Electric Power Co., 6.25%, Due 12/1/2015 | 500 | 576 | ||||||
Xcel Energy, Inc., 5.613%, Due 4/1/2017 | 581 | 622 | ||||||
11,232 | ||||||||
Total Corporate Obligations | 99,246 | |||||||
MUNICIPAL SECURITIES — 0.11% | ||||||||
Municipal Obligations — 0.11% | ||||||||
State of Illinois, 1.823%, Due 1/1/2011 | 250 | 251 | ||||||
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS — 3.83% | ||||||||
Banc of America Commercial Mortgage, Inc., | ||||||||
2005-6 A1, 5.001%, Due 9/10/2047 | 104 | 105 | ||||||
2007-2 A2, 5.634%, Due 4/10/2049 | 850 | 882 | ||||||
Bear Stearns Commercial Mortgage Securities, Inc., | ||||||||
2006-PWR14 A4, 5.201%, Due 12/11/2038 | 790 | 798 | ||||||
2006-PW13 A4, 5.54%, Due 9/11/2041 | 1,185 | 1,226 | ||||||
2004-PWR5 A4, 4.831%, Due 7/11/2042 | 835 | 849 | ||||||
Citigroup Commercial Mortgage Trust, 2004-C2 A3, 4.38%, Due 10/15/2041 | 770 | 782 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust, 2007-CD5 A4, 5.886%, Due 11/15/2044 | 840 | 850 | ||||||
JP Morgan Chase Commercial Mortgage Securities Corp., | ||||||||
2004-CBX A4, 4.529%, Due 1/12/2037 | 255 | 261 | ||||||
2005-LDP1 A2, 4.625%, Due 3/15/2046 | 331 | 338 | ||||||
2007-CB19 A4, 5.937%, Due 2/12/2049 | 550 | 558 | ||||||
2007-CB20 A2, 5.629%, Due 2/12/2051 | 750 | 774 | ||||||
LB-UBS Commercial Mortgage Trust, 2007-C1 A4, 5.424%, Due 2/15/2040 | 550 | 543 |
See accompanying notes
35
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Prime Mortgage Trust, 2005-2, 5.25%, Due 7/25/2020 | $ | 371 | $ | 367 | ||||
Wachovia Bank Commercial Mortgage Trust, 2007-C32 A2, 5.924%, Due 6/15/2049 | 410 | 423 | ||||||
Total Non-Agency Mortgage-Backed Obligations | 8,756 | |||||||
ASSET-BACKED SECURITIES — 4.37% | ||||||||
American Express Credit Account Master Trust, 2006-2 A, 5.35%, Due 1/15/2014 | 1,550 | 1,628 | ||||||
Bank of America Auto Trust, 2010-1A A2, 0.75%, Due 6/15/2012 ‡ | 750 | 750 | ||||||
BMW Floorplan Master Owner Trust, 2009-1A A, 1.404%, Due 9/15/2014 ‡ # | 400 | 400 | ||||||
Capital One Multi-Asset Execution Trust, 2006-A10 A10, 5.15%, Due 6/15/2014 | 1,150 | 1,212 | ||||||
Citibank Credit Card Issuance Trust, 2009-A2 A2, 1.804%, Due 5/15/2014 # | 750 | 770 | ||||||
Discover Card Master Trust, 2009-A2 A, 1.53%, Due 2/17/2015 # | 600 | 613 | ||||||
Ford Credit Auto Lease Trust, 2010-A A2, 1.04%, Due 3/15/2013 ‡ | 1,150 | 1,150 | ||||||
Ford Credit Floorplan Master Owner Trust, 2009-2 A, 1.804%, Due 9/15/2014 # | 400 | 404 | ||||||
Harley-Davidson Motorcycle Trust, 2009-4 A3, 1.87%, Due 2/15/2014 | 350 | 353 | ||||||
Honda Auto Receivables Owner Trust, 2009-3 A4, 3.30%, Due 9/15/2015 | 385 | 399 | ||||||
Hyundai Auto Receivables Trust, 2009-A A4, 3.15%, Due 3/15/2016 | 220 | 227 | ||||||
John Deere Owner Trust, | ||||||||
2009-A A3, 2.59%, Due 10/15/2013 | 395 | 401 | ||||||
2009-A A4, 3.96%, Due 5/16/2016 | 215 | 225 | ||||||
Nissan Master Owner Trust Receivables, 2010-2A A, 1.404%, Due 1/15/2015 ‡ # | 750 | 752 | ||||||
Volkswagen Auto Loan Enhanced Trust, | ||||||||
2010-1 A2, 0.66%, Due 5/21/2012 | 375 | 375 | ||||||
2008-2 A4A, 6.24%, Due 7/20/2015 | 300 | 332 | ||||||
Total Asset-Backed Securities | 9,991 | |||||||
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS — 21.49% | ||||||||
Federal Home Loan Mortgage Corporation — 7.39% | ||||||||
4.50%, Due 3/1/2019 | 371 | 390 | ||||||
5.00%, Due 10/1/2020 | 883 | 941 | ||||||
5.00%, Due 4/1/2023 | 245 | 260 | ||||||
5.00%, Due 8/1/2033 | 546 | 570 | ||||||
5.50%, Due 2/1/2034 | 673 | 714 | ||||||
6.00%, Due 8/1/2034 | 308 | 334 | ||||||
5.00%, Due 8/1/2035 | 362 | 376 | ||||||
5.00%, Due 9/1/2035 | 1,420 | 1,478 | ||||||
6.00%, Due 8/1/2036 | 388 | 416 | ||||||
5.50%, Due 11/1/2036 | 426 | 451 | ||||||
5.50%, Due 4/1/2037 | 543 | 574 | ||||||
5.50%, Due 5/1/2037 | 303 | 321 | ||||||
6.00%, Due 9/1/2037 | 228 | 244 | ||||||
5.50%, Due 12/1/2037 | 2,114 | 2,235 | ||||||
6.00%, Due 12/1/2037 | 280 | 301 | ||||||
5.00%, Due 3/1/2038 | 2,572 | 2,670 | ||||||
6.00%, Due 3/1/2038 | 2,034 | 2,179 | ||||||
5.50%, Due 5/1/2038 | 822 | 870 |
See accompanying notes
36
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
5.50%, Due 6/1/2038 | $ | 666 | $ | 705 | ||||
5.50%, Due 10/1/2039 | 806 | 852 | ||||||
16,881 | ||||||||
Federal National Mortgage Association — 12.76% | ||||||||
6.50%, Due 2/1/2017 | 142 | 154 | ||||||
5.00%, Due 12/1/2017 | 516 | 550 | ||||||
4.50%, Due 9/1/2018 | 984 | 1,038 | ||||||
4.00%, Due 8/1/2020 | 294 | 306 | ||||||
5.00%, Due 12/1/2023 | 505 | 533 | ||||||
5.00%, Due 3/1/2024 | 1,413 | 1,494 | ||||||
4.50%, Due 4/1/2024 | 579 | 603 | ||||||
5.00%, Due 3/1/2034 | 701 | 732 | ||||||
5.50%, Due 6/1/2034 | 373 | 396 | ||||||
4.50%, Due 9/1/2034 | 243 | 247 | ||||||
5.50%, Due 2/1/2035 | 794 | 843 | ||||||
5.00%, Due 11/1/2035 | 1,145 | 1,191 | ||||||
5.50%, Due 12/1/2035 | 869 | 919 | ||||||
5.50%, Due 1/1/2036 | 1,158 | 1,224 | ||||||
5.00%, Due 2/1/2036 | 611 | 636 | ||||||
5.50%, Due 2/1/2036 | 574 | 607 | ||||||
5.00%, Due 3/1/2036 | 566 | 589 | ||||||
5.50%, Due 4/1/2036 | 1,366 | 1,444 | ||||||
6.00%, Due 9/1/2036 | 291 | 311 | ||||||
6.50%, Due 9/1/2036 | 958 | 1,041 | ||||||
5.50%, Due 11/1/2036 | 447 | 472 | ||||||
6.00%, Due 11/1/2036 | 554 | 591 | ||||||
6.50%, Due 12/1/2036 | 451 | 489 | ||||||
5.50%, Due 2/1/2037 | 831 | 877 | ||||||
5.50%, Due 8/1/2037 | 1,978 | 2,096 | ||||||
6.00%, Due 9/1/2037 | 822 | 875 | ||||||
6.00%, Due 1/1/2038 | 1,203 | 1,281 | ||||||
5.00%, Due 3/1/2038 | 143 | 149 | ||||||
5.00%, Due 4/1/2038 | 1,726 | 1,790 | ||||||
5.00%, Due 5/1/2038 | 3,015 | 3,126 | ||||||
5.00%, Due 6/1/2038 | 984 | 1,020 | ||||||
5.50%, Due 6/1/2038 | 1,474 | 1,555 | ||||||
29,179 | ||||||||
Government National Mortgage Association — 1.34% | ||||||||
4.201%, Due 8/16/2026 | 227 | 233 | ||||||
6.50%, Due 3/15/2028 | 292 | 322 | ||||||
6.00%, Due 4/15/2031 | 346 | 377 | ||||||
5.50%, Due 2/20/2034 | 401 | 428 |
See accompanying notes
37
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
5.50%, Due 2/15/2040 | $ | 1,605 | $ | 1,711 | ||||
3,071 | ||||||||
Total U.S. Agency Mortgage-Backed Obligations | 49,131 | |||||||
U.S. AGENCY OBLIGATIONS — 0.51% | ||||||||
Federal National Mortgage Association — 0.42% | ||||||||
5.125%, Due 1/2/2014 | 385 | 421 | ||||||
4.625%, Due 10/15/2014 | 500 | 546 | ||||||
967 | ||||||||
Tennessee Valley Authority — 0.09% | ||||||||
5.25%, Due 9/15/2039 | 200 | 203 | ||||||
Total U.S. Agency Obligations | 1,170 | |||||||
U.S. TREASURY OBLIGATIONS — 22.13% | ||||||||
1.375%, Due 2/15/2012 | 9,270 | 9,354 | ||||||
1.375%, Due 3/15/2012 | 1,000 | 1,009 | ||||||
2.375%, Due 2/28/2015 | 7,965 | 7,970 | ||||||
4.25%, Due 8/15/2015 | 2,500 | 2,719 | ||||||
3.00%, Due 9/30/2016 | 1,050 | 1,052 | ||||||
3.125%, Due 10/31/2016 | 6,300 | 6,347 | ||||||
3.75%, Due 11/15/2018 | 3,100 | 3,167 | ||||||
3.625%, Due 2/15/2020 | 10,220 | 10,190 | ||||||
7.875%, Due 2/15/2021 | 1,050 | 1,430 | ||||||
6.25%, Due 8/15/2023 | 1,400 | 1,712 | ||||||
6.875%, Due 8/15/2025 | 770 | 1,003 | ||||||
5.25%, Due 11/15/2028 | 750 | 837 | ||||||
4.75%, Due 2/15/2037 | 1,300 | 1,356 | ||||||
4.50%, Due 8/15/2039 | 1,000 | 995 | ||||||
4.375%, Due 11/15/2039 | 1,485 | 1,448 | ||||||
Total U.S. Treasury Obligations | 50,589 | |||||||
Shares | ||||||||
SHORT TERM INVESTMENTS — 2.91% | ||||||||
JPMorgan U.S. Government Money Market Fund | 4,645,844 | 4,646 |
Par | ||||||||
Amount | ||||||||
U.S. Treasury, 0.22%, Due 10/21/2010 | $ | 2,000 | 1,998 | |||||
Total Short Term Investments | 6,644 | |||||||
TOTAL INVESTMENTS — 99.14% (Cost $218,438) | $ | 226,658 | ||||||
OTHER ASSETS, NET OF LIABILITIES — 0.86% | 1,968 | |||||||
TOTAL NET ASSETS — 100.00% | $ | 228,626 | ||||||
See accompanying notes
38
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Percentages are stated as a percent of net assets.
‡ | Security exempt from registration under the Securities Act of 1933. These securities may be resold to qualified institutional buyers pursuant to Rule 144A. At the period end, the value of these securities amounted to $11,718 or 5.13% of net assets. The Fund has no right to demand registration of these securities. | |
# | The coupon rate shown on floating or adjustable rate securities represents the rate at period end. The due date on these types of securities reflects the final maturity date. |
See accompanying notes
39
American Beacon Short-Term Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
CORPORATE OBLIGATIONS — 52.48% | ||||||||
Finance - 25.70% | ||||||||
Barclays Bank plc, 5.45%, Due 9/12/2012 | $ | 1,000 | $ | 1,078 | ||||
Berkshire Hathaway Finance Corp., 4.00%, Due 4/15/2012 | 1,000 | 1,055 | ||||||
Berkshire Hathaway, Inc., 0.68%, Due 2/11/2013 ‡ | 2,000 | 2,006 | ||||||
BNP Paribas, 0.695%, Due 4/8/2013 ‡ | 1,500 | 1,500 | ||||||
Citigroup, Inc., 0.529%, Due 11/5/2014 ‡ | 2,573 | 2,390 | ||||||
CME Group, Inc., 5.40%, Due 8/1/2013 | 250 | 275 | ||||||
Credit Suisse First Boston, 5.00%, Due 5/15/2013 | 2,000 | 2,152 | ||||||
Dexia Credit Local N.Y., 0.652%, Due 3/5/2013 ‡# | 3,000 | 3,002 | ||||||
General Electric Capital Corp., | ||||||||
0.401%, Due 3/20/2014 ‡ | 1,446 | 1,395 | ||||||
0.517%, Due 9/15/2014 ‡ | 1,218 | 1,177 | ||||||
Goldman Sachs Group, Inc., 4.75%, Due 7/15/2013 | 2,000 | 2,069 | ||||||
HSBC Finance Corp., 6.75%, Due 5/15/2011 | 1,000 | 1,053 | ||||||
John Hancock Global Funding II, 7.90%, Due 7/2/2010 # | 2,000 | 2,021 | ||||||
JP Morgan Chase & Co., 0.902%, Due 2/26/2013 ‡ | 3,000 | 3,008 | ||||||
MassMutual Global Funding II, | ||||||||
3.625%, Due 7/16/2012 # | 500 | 523 | ||||||
0.412%, Due 12/6/2013 ‡ # | 700 | 678 | ||||||
MBNA Corp., 7.50%, Due 3/15/2012 | 2,000 | 2,168 | ||||||
Mellon Funding Corp., 0.40%, Due 5/15/2014 ‡ | 2,000 | 1,972 | ||||||
Metropolitan Life Global Funding I, | ||||||||
0.507%, Due 3/15/2012 ‡ # | 1,000 | 987 | ||||||
2.875%, Due 9/17/2012 # | 1,000 | 1,019 | ||||||
Monumental Global Funding III, 0.503%, Due 1/15/2014 ‡ # | 1,000 | 954 | ||||||
Morgan Stanley, 0.595%, Due 1/9/2014 ‡ | 2,000 | 1,918 | ||||||
Pricoa Global Funding I, | ||||||||
0.438%, Due 1/30/2012 ‡ # | 800 | 783 | ||||||
5.40%, Due 10/18/2012 # | 500 | 540 | ||||||
Rabobank Nederland NV, 2.65%, Due 8/17/2012 # | 2,000 | 2,059 | ||||||
Svenska Handelsbanken AB, 4.875%, Due 6/10/2014 # | 1,500 | 1,598 | ||||||
UBS AG, 1.352%, Due 2/23/2012 ‡ | 1,000 | 1,006 | ||||||
UnitedHealth Group, Inc., 5.125%, Due 11/15/2010 | 1,000 | 1,023 | ||||||
Wachovia Bank NA, 0.629%, Due 11/3/2014 ‡ | 1,000 | 971 | ||||||
Wachovia Corp., 2.019%, Due 5/1/2013 ‡ | 1,000 | 1,030 | ||||||
43,410 | ||||||||
Industrials — 24.94% | ||||||||
American Honda Finance Corp., 4.625%, Due 4/2/2013 # | 1,000 | 1,064 | ||||||
Anheuser-Busch InBev Worldwide, Inc., | ||||||||
3.00%, Due 10/15/2012 | 1,000 | 1,028 | ||||||
2.50%, Due 3/26/2013 # | 1,000 | 1,005 | ||||||
AT&T Wireless Services, Inc., 7.875%, Due 3/1/2011 | 2,500 | 2,645 | ||||||
BAE Systems Holdings, Inc., 4.75%, Due 8/15/2010 # | 1,100 | 1,111 | ||||||
Burlington Northern Santa Fe LLC, 6.75%, Due 7/15/2011 | 1,000 | 1,059 |
See accompanying notes
40
American Beacon Short-Term Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
Canadian Natural Resources Ltd., 6.70%, Due 7/15/2011 | $ | 1,000 | $ | 1,064 | ||||
Caterpillar Financial Services Corp., 4.25%, Due 2/8/2013 | 500 | 530 | ||||||
Cellco Partnership / Verizon Wireless Capital LLC, 5.25%, Due 2/1/2012 | 1,000 | 1,066 | ||||||
Cisco Systems, Inc., 5.25%, Due 2/22/2011 | 550 | 570 | ||||||
Comcast Cable Communications Holdings, Inc., 8.375%, Due 3/15/2013 | 1,365 | 1,586 | ||||||
Covidien International Finance SA, 5.15%, Due 10/15/2010 | 1,000 | 1,020 | ||||||
Daimler Finance NA LLC, 5.75%, Due 9/8/2011 | 1,000 | 1,055 | ||||||
Dell, Inc., 3.375%, Due 6/15/2012 | 500 | 521 | ||||||
Deutsche Telekom AG, 8.50%, Due 6/15/2010 | 2,000 | 2,017 | ||||||
Devon Financing Corp. U.L.C., 6.875%, Due 9/30/2011 | 1,000 | 1,076 | ||||||
France Telecom S.A., 7.75%, Due 3/1/2011 | 1,000 | 1,056 | ||||||
General Mills, Inc., 5.25%, Due 8/15/2013 | 1,000 | 1,099 | ||||||
Hewlett-Packard Co., 2.25%, Due 5/27/2011 | 500 | 506 | ||||||
John Deere Capital Corp., 5.25%, Due 10/1/2012 | 1,000 | 1,089 | ||||||
Kellogg Co., 6.60%, Due 4/1/2011 | 1,000 | 1,050 | ||||||
Kraft Foods, Inc., 5.625%, Due 11/1/2011 | 500 | 530 | ||||||
Marathon Oil Canada Corp., 8.375%, Due 5/1/2012 | 1,000 | 1,123 | ||||||
Nationwide Building Society, 5.50%, Due 7/18/2012 # | 1,000 | 1,073 | ||||||
Nissan Motor Acceptance Corp., 5.625%, Due 3/14/2011 # | 2,000 | 2,075 | ||||||
Norfolk Southern Corp., 8.625%, Due 5/15/2010 | 1,000 | 1,002 | ||||||
Northrop Grumman Corp., 7.125%, Due 2/15/2011 | 1,000 | 1,047 | ||||||
Roche Holdings, Inc., 4.50%, Due 3/1/2012 # | 1,000 | 1,057 | ||||||
Simon Property Group LP, 5.30%, Due 5/30/2013 | 1,000 | 1,072 | ||||||
Telefonica Emisiones SAU, 0.58%, Due 2/4/2013 ‡ | 1,000 | 982 | ||||||
Time Warner Cable, Inc., 5.40%, Due 7/2/2012 | 1,000 | 1,076 | ||||||
Tyco International Finance SA, 6.75%, Due 2/15/2011 | 2,000 | 2,090 | ||||||
Union Pacific Corp., | ||||||||
3.625%, Due 6/1/2010 | 860 | 862 | ||||||
6.50%, Due 4/15/2012 | 500 | 546 | ||||||
5.45%, Due 1/31/2013 | 1,000 | 1,090 | ||||||
Vodafone Group plc, 5.50%, Due 6/15/2011 | 1,000 | 1,049 | ||||||
Xerox Corp., 5.65%, Due 5/15/2013 | 300 | 322 | ||||||
XTO Energy, Inc., | ||||||||
5.90%, Due 8/1/2012 | 1,000 | 1,098 | ||||||
6.25%, Due 4/15/2013 | 719 | 807 | ||||||
42,118 | ||||||||
Utilities — 1.84% | ||||||||
Dominion Resources, Inc., 5.70%, Due 9/17/2012 | 1,000 | 1,088 | ||||||
FPL Group Capital, Inc., 0.65%, Due 11/9/2012 ‡ | 1,000 | 999 | ||||||
Midamerican Energy Holdings Co., 3.15%, Due 7/15/2012 | 1,000 | 1,030 | ||||||
3,117 | ||||||||
Total Corporate Obligations | 88,645 | |||||||
See accompanying notes
41
American Beacon Short-Term Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
MUNICIPAL SECURITIES — 0.21% | ||||||||
Municipal Obligations — 0.21% | ||||||||
State of Illinois, 1.823%, Due 1/1/2011 | $ | 350 | $ | 351 | ||||
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS — 1.88% | ||||||||
Banc of America Commercial Mortgage, Inc., | ||||||||
2005-6 A1, 5.001%, Due 9/10/2047 | 209 | 210 | ||||||
2007-2 A2, 5.634%, Due 4/10/2049 | 800 | 830 | ||||||
GMAC Mortgage Servicer Advance Funding Co. Ltd., 2010-1A A, 4.25%, Due 1/15/2022 # | 2,000 | 2,000 | ||||||
Wachovia Bank Commercial Mortgage Trust, 2006-C23 A1, 5.203%, Due 1/15/2045 | 132 | 133 | ||||||
Total Non-Agency Mortgage-Backed Obligations | 3,173 | |||||||
ASSET-BACKED SECURITIES — 24.39% | ||||||||
Bank of America Auto Trust, | ||||||||
2010-1A A2, 0.75%, Due 6/15/2012 # | 1,000 | 1,000 | ||||||
2009-1A A3, 2.67%, Due 7/15/2013 # | 1,000 | 1,020 | ||||||
2009-2A A3, 2.13%, Due 9/15/2013 # | 1,000 | 1,014 | ||||||
BMW Floorplan Master Owner Trust, 2009-1A A, 1.404%, Due 9/15/2014 ‡ # | 2,000 | 2,000 | ||||||
Capital One Multi-Asset Execution Trust, 2009-A2 A2, 3.20%, Due 4/15/2014 | 2,000 | 2,051 | ||||||
CarMax Auto Owner Trust, 2010-1 A2, 0.83%, Due 11/15/2012 | 1,000 | 1,000 | ||||||
Chase Issuance Trust, 2009-A2 A2, 1.804%, Due 4/15/2014 ‡ | 2,000 | 2,049 | ||||||
Chrysler Financial Lease Trust, 2010-A A2, 1.78%, Due 6/15/2011 # | 3,000 | 2,997 | ||||||
Citibank Credit Card Issuance Trust, 2009-A3 A3, 2.70%, Due 6/24/2013 | 2,000 | 2,040 | ||||||
CitiFinancial Auto Issuance Trust, 2009-1 A3, 2.59%, Due 10/15/2013 # | 2,000 | 2,023 | ||||||
Discover Card Master Trust, 2009-A2 A, 1.53%, Due 2/17/2015 ‡ | 2,000 | 2,043 | ||||||
Ford Credit Auto Owner Trust, 2009-D A3, 2.17%, Due 10/15/2013 | 1,000 | 1,014 | ||||||
Ford Credit Floorplan Master Owner Trust, 2009-2 A, 1.804%, Due 9/15/2014 ‡ | 2,000 | 2,019 | ||||||
GE Capital Credit Card Master Note Trust, 2009-2 A, 3.69%, Due 7/15/2015 | 2,000 | 2,071 | ||||||
GE Equipment Midticket LLC, 2009-1 A3, 2.34%, Due 6/17/2013 | 1,000 | 1,013 | ||||||
Harley-Davidson Motorcycle Trust, 2007-3 A4, 5.52%, Due 11/15/2013 | 2,000 | 2,088 | ||||||
Honda Auto Receivables Owner Trust, 2009-3 A3, 2.31%, Due 5/15/2013 | 1,500 | 1,525 | ||||||
John Deere Owner Trust, 2010-A A2, 0.72%, Due 7/16/2012 | 3,000 | 3,000 | ||||||
Mercedes-Benz Auto Receivables Trust, 2010-1 A2, 0.70%, Due 8/15/2012 | 1,000 | 999 | ||||||
Nissan Auto Lease Trust, 2009-B A3, 2.07%, Due 1/15/2015 | 2,000 | 2,025 | ||||||
Nissan Master Owner Trust Receivables, 2010-2A A, 1.404%, Due 1/15/2015 ‡ # | 1,000 | 1,003 | ||||||
USAA Auto Owner Trust, 2007-1 A4, 5.55%, Due 2/15/2013 | 3,000 | 3,100 | ||||||
Volkswagen Auto Loan Enhanced Trust, | ||||||||
2010-1 A2, 0.66%, Due 5/21/2012 | 1,000 | 1,000 | ||||||
2008-2 A4A, 6.24%, Due 7/20/2015 | 1,000 | 1,108 | ||||||
Total Asset-Backed Securities | 41,202 | |||||||
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS — 5.15% | ||||||||
Government National Mortgage Association — 5.15% | ||||||||
4.968%, Due 12/16/2021 | 490 | 500 | ||||||
4.201%, Due 8/16/2026 | 1,137 | 1,164 |
See accompanying notes
42
American Beacon Short-Term Bond Fund
Schedule of Investments
April 30, 2010 (Unaudited)
Par | ||||||||
Amount | Value | |||||||
(dollars in thousands) | ||||||||
2.782%, Due 6/16/2036 | $ | 1,994 | $ | 1,996 | ||||
3.069%, Due 6/16/2036 | 3,000 | 3,027 | ||||||
3.21%, Due 10/16/2039 | 1,995 | 2,017 | ||||||
Total U.S. Agency Mortgage-Backed Obligations | 8,704 | |||||||
U.S. AGENCY OBLIGATIONS — 6.07% | ||||||||
Bank of America Corp. (FDIC Guaranteed) — 6.07% | ||||||||
2.375%, Due 6/22/2012 | 10,000 | 10,244 | ||||||
U.S. TREASURY OBLIGATIONS— 8.93% | ||||||||
2.50%, Due 3/31/2015 | 15,000 | 15,075 | ||||||
Shares | ||||||||
SHORT TERM INVESTMENTS — 0.35% | ||||||||
JPMorgan U.S. Government Money Market Fund | 584,389 | 584 | ||||||
TOTAL INVESTMENTS — 99.46% (Cost $165,116) | $ | 167,978 | ||||||
OTHER ASSETS, NET OF LIABILITIES — 0.54% | 918 | |||||||
TOTAL NET ASSETS — 100.00% | $ | 168,896 | ||||||
Percentages are stated as a percent of net assets.
‡ | The coupon rate shown on floating or adjustable rate securities represents the rate at period end. The due date on these types of securities reflects the final maturity date. | |
# | Security exempt from registration under the Securities Act of 1933. These securities may be resold to qualified institutional buyers pursuant to Rule 144A. At the period end, the value of these securities amounted to $34,606 or 20.49% of net assets. The Fund has no right to demand registration of these securities. |
See accompanying notes
43
American Beacon Funds
Statements of Assets and Liabilities
April 30, 2009 (Unaudited) (in thousands except share and per share amounts)
Retirement | ||||||||||||||||
High Yield | Income and Appreciation | Intermediate | Short-Term | |||||||||||||
Bond Fund | Fund | Bond Fund | Bond Fund | |||||||||||||
Assets: | ||||||||||||||||
Investments in securities, at value A | $ | 244,206 | $ | 116,184 | $ | 226,658 | $ | 167,978 | ||||||||
Receivable for investments sold | 4,035 | 438 | — | — | ||||||||||||
Dividends and interest receivable | 5,723 | 912 | 1,865 | 1,060 | ||||||||||||
Receivable for fund shares sold | 999 | 178 | 202 | 148 | ||||||||||||
Receivable for tax reclaims | — | 7 | 9 | 4 | ||||||||||||
Receivable for expense reimbursement | — | — | — | 4 | ||||||||||||
Prepaid expenses | 53 | 27 | 40 | 31 | ||||||||||||
Total assets | 255,016 | 117,746 | 228,774 | 169,225 | ||||||||||||
Liabilities: | ||||||||||||||||
Payable for investments purchased | 10,595 | 367 | — | — | ||||||||||||
Payable for fund shares redeemed | 574 | — | 47 | 198 | ||||||||||||
Dividends payable | 174 | — | — | 5 | ||||||||||||
Management and investment advisory fees payable (Note 2) | 294 | 112 | 36 | 27 | ||||||||||||
Administrative service and service fees payable | 52 | 56 | 10 | 25 | ||||||||||||
Professional fees payable | 10 | 10 | 15 | 20 | ||||||||||||
Trustee fees payable | 6 | 2 | 7 | 8 | ||||||||||||
Prospectus and shareholder reports | 40 | 11 | 19 | 30 | ||||||||||||
Other liabilities | 15 | 5 | 14 | 16 | ||||||||||||
Total liabilities | 11,760 | 563 | 148 | 329 | ||||||||||||
Net Assets | $ | 243,256 | $ | 117,183 | $ | 228,626 | $ | 168,896 | ||||||||
Analysis of Net Assets: | ||||||||||||||||
Paid-in-capital | 245,154 | 114,325 | 219,325 | 174,152 | ||||||||||||
Undistributed net investment income | 503 | 103 | 501 | (554 | ) | |||||||||||
Accumulated net realized gain (loss) | (18,971 | ) | (2,232 | ) | 580 | (7,564 | ) | |||||||||
Unrealized appreciation of investments, futures contracts, and foreign currency | 16,570 | 4,987 | 8,220 | 2,862 | ||||||||||||
Net assets | $ | 243,256 | $ | 117,183 | $ | 228,626 | $ | 168,896 | ||||||||
Shares outstanding (no par value): | ||||||||||||||||
Institutional Class | 5,110,866 | N/A | 21,048,377 | 14,043,359 | ||||||||||||
Y Class | 116 | 97 | 94 | 113 | ||||||||||||
Investor Class | 11,284,456 | 11,248,072 | 260,864 | 5,051,927 | ||||||||||||
AMR Class | 10,935,156 | N/A | N/A | N/A | ||||||||||||
Net asset value, offering and redemption price per share: | ||||||||||||||||
Institutional Class | $ | 8.90 | N/A | $ | 10.73 | $ | 8.84 | |||||||||
Y Class | $ | 8.90 | $ | 10.41 | $ | 10.73 | $ | 8.85 | ||||||||
Investor Class | $ | 8.90 | $ | 10.42 | $ | 10.71 | $ | 8.85 | ||||||||
AMR Class | $ | 8.90 | N/A | N/A | N/A | |||||||||||
A Cost of investments in securities | $ | 227,636 | $ | 110,991 | $ | 218,438 | $ | 165,116 |
See accompanying notes
44
American Beacon Funds
Statements of Operations
Six Months Ended April 30, 2010 (in thousands) (Unaudited)
Six Months Ended April 30, 2010 (in thousands) (Unaudited)
High | Retirement | Short- | ||||||||||||||
Yield Bond Fund | Income and Appreciation Funnd | Intermediate Bond Fund | Term Bond Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend income | $ | 20 | $ | 138 | $ | 3 | $ | 2 | ||||||||
Interest income | 12,605 | 2,113 | 4,616 | 2,176 | ||||||||||||
Total investment income | 12,625 | 2,251 | 4,619 | 2,178 | ||||||||||||
Expenses: | ||||||||||||||||
Management and investment advisory fees (Note 2) | 506 | 184 | 219 | 162 | ||||||||||||
Administrative service fees (Note 2): | ||||||||||||||||
Institutional Class | 71 | — | 54 | 31 | ||||||||||||
Investor Class | 147 | 168 | 4 | 59 | ||||||||||||
AMR Class | 29 | — | — | — | ||||||||||||
Transfer agent fees: | ||||||||||||||||
Institutional Class | 1 | — | 9 | 7 | ||||||||||||
Investor Class | 4 | 4 | — | 2 | ||||||||||||
AMR Class | 6 | — | �� | — | — | |||||||||||
Custody and fund accounting fees | 26 | 11 | 22 | 18 | ||||||||||||
Professional fees | 15 | 17 | 21 | 25 | ||||||||||||
Registration fees and expenses | 18 | 9 | 18 | 14 | ||||||||||||
Service fees (Note 2): | ||||||||||||||||
Investor Class | 122 | 205 | 3 | 50 | ||||||||||||
Prospectus and shareholder reports | 23 | 5 | 18 | 30 | ||||||||||||
Trustee fees | 9 | 5 | 12 | 7 | ||||||||||||
Other expenses | 11 | 5 | 11 | 12 | ||||||||||||
Total expenses | 988 | 613 | 391 | 417 | ||||||||||||
Net (fees waived and expenses reimbursed)/recouped by Manager (Note 2) | — | — | (2 | ) | (53 | ) | ||||||||||
Net expenses | 988 | 613 | 389 | 364 | ||||||||||||
Net investment income | 11,637 | 1,638 | 4,230 | 1,814 | ||||||||||||
Realized and unrealized gain (loss) on investments: | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments | 8,790 | 129 | 1,215 | 1,057 | ||||||||||||
Change in net unrealized appreciation or depreciation of: | ||||||||||||||||
Investments | 5,761 | 1,741 | (302 | ) | (232 | ) | ||||||||||
Net gain on investments | 14,551 | 1,870 | 913 | 825 | ||||||||||||
Net increase in net assets resulting from operations | $ | 26,188 | $ | 3,508 | $ | 5,143 | $ | 2,639 | ||||||||
See accompanying notes
45
American Beacon Funds
Statements of Changes in Net Assets (in thousands)
Retirement Income and | ||||||||||||||||
High Yield Bond Fund | Appreciation Fund | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Year Ended | Ended | Year Ended | |||||||||||||
April 30, | October 31, | April 30, | October | |||||||||||||
2010 | 2009 | 2010 | 31, 2009 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 11,637 | $ | 19,821 | $ | 1,638 | $ | 3,433 | ||||||||
Net realized gain (loss) on investments, futures contracts, and foreign currency transactions | 8,790 | (11,143 | ) | 129 | (242 | ) | ||||||||||
Change in net unrealized appreciation or depreciation of investments, futures contracts, and foreign currency translations | 5,761 | 61,933 | 1,741 | 14,228 | ||||||||||||
Net increase in net assets resulting from operations | 26,188 | 70,611 | 3,508 | 17,419 | ||||||||||||
Distributions to Shareholders: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Institutional Class | (2,128 | ) | (6,264 | ) | — | — | ||||||||||
Investor Class | (4,227 | ) | (4,848 | ) | (1,810 | ) | (3,577 | ) | ||||||||
AMR Class | (5,279 | ) | (8,707 | ) | — | — | ||||||||||
Return of Capital: | ||||||||||||||||
Investor Class | — | — | — | (173 | ) | |||||||||||
Net distributions to shareholders | (11,634 | ) | (19,819 | ) | (1,810 | ) | (3,750 | ) | ||||||||
Capital Share Transactions: | ||||||||||||||||
Proceeds from sales of shares | 214,805 | 297,510 | 25,669 | 24,626 | ||||||||||||
Reinvestment of dividends and distributions | 10,603 | 17,602 | 1,808 | 3,745 | ||||||||||||
Cost of shares redeemed | (227,358 | ) | (255,402 | ) | (5,719 | ) | (48,782 | ) | ||||||||
Redemption fees | 3 | — | — | — | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | (1,947 | ) | 59,710 | 21,758 | (20,411 | ) | ||||||||||
Net increase (decrease) in net assets | 12,607 | 110,502 | 23,456 | (6,742 | ) | |||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 230,649 | 120,147 | 93,727 | 100,469 | ||||||||||||
End of Period * | $ | 243,256 | $ | 230,649 | $ | 117,183 | $ | 93,727 | ||||||||
*Includes undistributed net investment income (loss) of | $ | 503 | $ | 503 | $ | 103 | $ | (117 | ) | |||||||
See accompanying notes
46
American Beacon Funds
Statements of Changes in Net Assets (in thousands)
Intermediate Bond Fund | Short-Term Bond Fund | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Year Ended | Ended | Year Ended | |||||||||||||
April 30, | October 31, | April 30, | October 31, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 4,230 | $ | 8,798 | $ | 1,814 | $ | 5,710 | ||||||||
Net realized gain on investments, futures contracts, and foreign currency transactions | 1,215 | 1,112 | 1,057 | 5,301 | ||||||||||||
Change in net unrealized appreciation or depreciation of investments, futures contracts, and foreign currency translations | (302 | ) | 17,269 | (232 | ) | 2,645 | ||||||||||
Net increase in net assets resulting from operations | 5,143 | 27,179 | 2,639 | 13,656 | ||||||||||||
Distributions to Shareholders: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Institutional Class | (4,187 | ) | (8,775 | ) | (1,870 | ) | (7,180 | ) | ||||||||
Investor Class | (43 | ) | (23 | ) | (552 | ) | (653 | ) | ||||||||
Net distributions to shareholders | (4,230 | ) | (8,798 | ) | (2,422 | ) | (7,833 | ) | ||||||||
Capital Share Transactions: | ||||||||||||||||
Proceeds from sales of shares | 27,710 | 154,268 | 50,794 | 92,994 | ||||||||||||
Reinvestment of dividends and distributions | 4,230 | 8,797 | 2,370 | 7,696 | ||||||||||||
Cost of shares redeemed | (17,423 | ) | (115,884 | ) | (39,678 | ) | (214,778 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | 14,517 | 47,181 | 13,486 | (114,088 | ) | |||||||||||
Net increase (decrease) in net assets | 15,430 | 65,562 | 13,703 | (108,265 | ) | |||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 213,196 | 147,634 | 155,193 | 263,458 | ||||||||||||
End of Period * | $ | 228,626 | $ | 213,196 | $ | 168,896 | $ | 155,193 | ||||||||
*Includes undistributed net investment income (loss) of | $ | 501 | $ | 501 | $ | (554 | ) | $ | (137 | ) | ||||||
See accompanying notes
47
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
1. Organization and Significant Accounting Policies
American Beacon Funds (the “Trust”) is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, (the “Act”) as a diversified, open-end management investment company. These financial statements and notes to the financial statements relate to the American Beacon High Yield Bond Fund, the American Beacon Retirement Income and Appreciation Fund, the American Beacon Intermediate Bond Fund and the American Beacon Short-Term Bond Fund (each a “Fund” and collectively, the “Funds”), each a series of the Trust. Prior to December 30, 2009, the American Beacon Retirement Income and Appreciation Fund was known as the American Beacon Enhanced Income Fund. From December 30, 2009 to March 1, 2010, the American Beacon Retirement Income and Appreciati on Fund was known as the American Beacon Retirement Income Fund.
American Beacon Advisors, Inc. (the “Manager”), is a wholly-owned subsidiary of Lighthouse Holdings, Inc. and was organized in 1986 to provide business management, advisory, administrative and asset management consulting services to the Trust and other investors.
Class Disclosure
March 1, 2010 is the inception date of each Y Class of the Funds.
Each Fund has multiple classes of shares designed to meet the needs of different groups of investors; however, not all Funds offer all classes. The following table sets forth the differences amongst the classes:
Class: | Offered to: | |
Institutional Class | Investors making an initial investment of $250,000 | |
Y Class | Investors making an initial investment of $100,000 | |
Investor Class | General public and investors investing through an intermediary | |
AMR Class | Investors in the tax-exempt retirement and benefit plans of the Manager, AMR Corporation, and its affiliates |
Administrative service fees, service fees and distribution fees vary amongst the classes as described more fully in footnote 2.
Investment income, net capital gains (losses) and all expenses incurred by the Funds are allocated based on the relative net assets of each class, except for service fees and certain other fees and expenses related solely to one class of shares.
Security Valuation
Investments are valued at the close of the New York Stock Exchange (the “Exchange”), normally 4 p.m. ET, each day that the Exchange is open for business. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade.
Debt securities (other than short-term securities) normally are valued on the basis of prices provided by an independent pricing service and may take into account appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. The prices of debt securities may be determined using quotes obtained from brokers.
Investments in mutual funds are valued at the closing net asset value per share of the mutual fund on the day of valuation. Investment grade short-term obligations with 60 days or less to maturity are valued using the amortized cost method, which approximates market value.
48
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
Securities for which market prices are not readily available or are not reflective of the fair value of the security, as determined by the Manager, will be priced at fair value following procedures approved by the Board of Trustees (the “Board”).
Valuation Inputs
Various inputs may be used to determine the value of the Funds’ investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1 — Quoted prices in active markets for identical securities.
Level 2 — Prices determined using other significant observable inputs. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Level 3 — Prices determined using other significant unobservable inputs. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.
A summary of the inputs used to value the Fund’s investments as of April 30, 2010 is as follows (in thousands):
High Yield Bond | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 1,149 | $ | — | $ | — | $ | 1,149 | ||||||||
Preferred Stocks | 402 | — | — | 402 | ||||||||||||
Corporate Obligations | — | 231,526 | — | 231,526 | ||||||||||||
Convertible Obligations | — | 1,106 | — | 1,106 | ||||||||||||
Asset-Backed Securities | — | 644 | — | 644 | ||||||||||||
Short Term Investments | 9,379 | — | — | 9,379 | ||||||||||||
Total Investments in Securities | $ | 10,930 | $ | 233,276 | $ | — | $ | 244,206 |
Retirement Income and Appreciation Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 5,927 | $ | — | $ | — | $ | 5,927 | ||||||||
Convertible Preferred | 962 | 280 | — | 1,242 | ||||||||||||
Preferred Stock | 1,278 | — | — | 1,278 | ||||||||||||
Agencies | — | 609 | — | 609 | ||||||||||||
Corporate Obligations | — | 43,573 | — | 43,573 | ||||||||||||
Convertible Obligations | — | 14,218 | — | 14,218 | ||||||||||||
Municipal Securities | — | 200 | — | 200 | ||||||||||||
Non-Agency Mortgage Backed Obligations | — | 2,571 | — | 2,571 | ||||||||||||
Asset-Backed Obligations | — | 6,305 | — | 6,305 | ||||||||||||
U.S. Agency Mortgage Backed Obligations | — | 14,944 | — | 14,944 | ||||||||||||
U.S. Agency Obligations | — | 1,565 | — | 1,565 | ||||||||||||
U.S. Treasury Obligations | — | 18,679 | — | 18,679 | ||||||||||||
Short Term Investments | 2,076 | 2,997 | — | 5,073 | ||||||||||||
Total Investments in Securities | $ | 10,243 | $ | 105,941 | $ | — | $ | 116,184 |
Intermediate Bond Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Agencies | $ | — | $ | 880 | $ | — | $ | 880 | ||||||||
Corporate Obligations | — | 99,246 | — | 99,246 | ||||||||||||
Municipal Securities | — | 251 | — | 251 | ||||||||||||
Non-Agency Mortgage Backed Obligations | — | 8,756 | — | 8,756 | ||||||||||||
Asset-Backed Securities | — | 9,991 | — | 9,991 | ||||||||||||
U.S. Agency Mortgage Backed Obligations | — | 49,131 | — | 49,131 | ||||||||||||
U.S. Agency Obligations | — | 1,170 | — | 1,170 | ||||||||||||
U.S. Treasury Obligations | — | 50,589 | — | 50,589 | ||||||||||||
Short Term Investments | 4,646 | 1,998 | — | 6,644 | ||||||||||||
Total Investments in Securities | $ | 4,646 | $ | 222,012 | $ | — | $ | 226,658 |
49
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
Short-Term Bond Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate Obligations | $ | — | $ | 88,645 | $ | — | $ | 88,645 | ||||||||
Municipal Securities | — | 351 | — | 351 | ||||||||||||
Non-Agency Mortgage Backed Obligations | — | 3,173 | — | 3,173 | ||||||||||||
Asset-Backed Securities | — | 41,202 | — | 41,202 | ||||||||||||
U.S. Agency Mortgage Backed Obligations | — | 8,704 | — | 8,704 | ||||||||||||
U.S. Agency Obligations | — | 10,244 | — | 10,244 | ||||||||||||
U.S. Treasury Obligations | — | 15,075 | — | 15,075 | ||||||||||||
Short Term Investments | 584 | — | — | 584 | ||||||||||||
Total Investments in Securities | $ | 584 | $ | 167,394 | $ | — | $ | 167,978 |
Security Transactions and Investment Income
Security transactions are recorded on the trade date of the security purchase or sale. The Funds may purchase securities with delivery or payment to occur at a later date. At the time the Funds enter into a commitment to purchase a security, the transaction is recorded and the value of the security is reflected in the net asset value. The value of the security may vary with market fluctuations.
Dividend income, net of foreign taxes, is recorded on the ex-dividend date. Interest income is earned from settlement date, recorded on the accrual basis, and adjusted, if necessary, for accretion of discounts and amortization of premiums. For financial and tax reporting purposes, realized gains and losses are determined on the basis of specific lot identification.
Dividends to Shareholders
Dividends from net investment income of the Funds generally will be declared daily, payable monthly. Distributions, if any, of net realized capital gains are generally paid at least annually and recorded on the ex-dividend date.
Commission Recapture
The Funds have established brokerage commission recapture arrangements with certain brokers or dealers. If a Fund’s investment advisor chooses to execute a transaction through a participating broker, the broker rebates a portion of the commission back to the Fund. Any collateral benefit received through participation in the commission recapture program is directed exclusively to the Fund. These amounts are reported with the net realized gains in the Funds’ Statements of Operations.
Allocation of Income, Expenses, Gains and Losses
Income, expenses (other than those attributable to a specific class), gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimated.
Other
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liability arising out of the performance of their duties to the Trust. In the normal course of business, the Trust
50
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
enters into contracts that provide indemnification to the other party or parties against potential costs or liabilities. The Trust’s maximum exposure under these arrangements is dependent on claims that may be made in the future and, therefore, cannot be estimated. The Trust has had no prior claims or losses pursuant to any such agreement.
2. Transactions with Affiliates
Management Agreement
The Trust and the Manager are parties to a Management Agreement that obligates the Manager to provide or oversee the provision of all investment advisory and portfolio management services. Investment assets of the High Yield Bond, Retirement Income and Appreciation, and Intermediate Bond Funds are managed by one or more investment advisors which have entered into separate investment advisory agreements with the Manager. As compensation for performing the duties required under the Management Agreement, the Manager receives from the High Yield Bond Fund and Retirement Income and Appreciation Fund an annualized fee equal to 0.05% of the average daily net assets plus amounts paid by the Manager to the investment advisors hired by the Manager to direct investment activities of the Funds. The Manager receives an annualized fee of 0.20% of the a verage daily net assets of the Intermediate Bond Fund and pays a portion of its fee to an investment advisor hired by the Manager to direct investment activities of a portion of the Fund. The Manager is one of the investment advisors of the Retirement Income and Appreciation Fund and receives an annualized fee of 0.15% on the portion of assets managed by the Manager. The Manager serves as the sole investment advisor to the Short-Term Bond Fund. Pursuant to the Management Agreement, the Manager receives from the Fund an annualized fee equal to 0.20% of the average daily net assets of the Short-Term Bond Fund. Management fees paid during the six months ended April 30, 2010 were as follows (dollars in thousands):
Amounts paid | Net Amounts | |||||||||||||||
Management | Management | to Investment | Retained by | |||||||||||||
Fee Rate | Fee | Advisors | Manager | |||||||||||||
High Yield Bond | 0.30%-0.45 | % | $ | 506 | $ | 441 | $ | 65 | ||||||||
Retirement Income and Appreciation | 0.20%-0.80 | % | 184 | 156 | 28 | |||||||||||
Intermediate Bond | 0.20 | % | 219 | 91 | 128 |
Administrative Services Agreement
The Manager and the Trust entered into an Administrative Services Agreement which obligates the Manager to provide or oversee administrative services to the Funds. As compensation for performing the duties required under the Administrative Services Agreement, the Manager receives an annualized fee of 0.05% of the average daily net assets of the AMR Class and 0.30% of the average daily net assets of the Institutional, Y, and Investor Classes of each of the Funds except for the Institutional Class of the Intermediate and Short-Term Bond Funds from which the Manager received a fee of 0.05% of average daily net assets.
Distribution Plans
The Trust has adopted a “defensive” Distribution Plan (the “Plan”) in accordance with Rule 12b-1 under the Act, pursuant to which no fees may be charged to the Funds for distribution purposes. However, the Plan authorizes the management and administrative service fees received by the Manager and the investment advisors hired by the Manager to be used for distribution purposes. Under this Plan, the Trust does not intend to compensate the Manager or any other party, either directly or indirectly, for the distribution of Trust shares.
Service Plans
The Manager and the Trust entered into Service Plans that obligate the Manager to oversee additional shareholder servicing of the Y and Investor Classes. As compensation for performing the duties required under
51
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
the Service Plans, the Manager receives 0.10% of the average daily net assets of the Y Class of each Fund and up to 0.375% of the average daily net assets of the Investor Class of each Fund.
Investment in Affiliated Funds
The Funds may invest in the American Beacon Money Market Select Fund (the “MM Select Fund”) and the American Beacon US Government Money Market Select Fund (the “USG Select Fund”) (collectively, the “Select Funds”). The Funds and the Select Funds have the same investment advisor and therefore, are considered to be affiliated. The Manager serves as investment advisor to the Select Funds and receives from the Select Funds an annualized management fee of 0.09% of the average daily net assets of the Select Funds. During the six months ended April 30, 2010, there were no investments in the Select Funds.
Interfund Lending Program
Pursuant to an exemptive order by the Securities and Exchange Commission (“SEC”), the Funds, along with other registered investment companies having management contracts with the Manager, may participate in an interfund lending program as a borrower. This program provides an alternative credit facility allowing the Funds to borrow from other participating Funds. During the six months ended April 30, 2010, the High Yield Bond Fund borrowed from both the MM Select Fund and the USG Select Fund on average $6,751,271, for 8 days at 0.77% with interest charges of $1,133.
Reimbursement of Expenses
Since March 1, 2010, the Manager contractually agreed to reimburse the Investor Class of the Intermediate and Short-Term Bond Funds for operating expenses and voluntarily agreed to reimburse expense of the Y Class of the Intermediate and Short-Term Bond Funds. During the period ended April 30, 2010, the Manager reimbursed fees for the Intermediate Bond Investor and Y Classes of $1,687 and $0.45, respectively. The Manager reimbursed fees for the Short-Term Bond Investor and Y Classes of $52,814 and $0.40, respectively.
Expense Reimbursement Plan
The Funds have adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of fees waived or expenses reimbursed for a period of up to three years. However, reimbursement will occur only if the Class’ average net assets have grown or expenses have declined sufficiently to allow reimbursement without causing its expense ratio to exceed the previously agreed upon contractual expense limit. During the six months ended April 30, 2010, the Funds have not recorded a liability for potential reimbursement, due to the current assessment that a reimbursement is unlikely.
3. Federal Income and Excise Taxes
It is the policy of each of the Funds to comply with the requirements of Subchapter M of the Internal Revenue Code and to distribute substantially all net investment income as well as any net realized capital gains on the sale of investments. Therefore, no federal income or excise tax provision is required.
The Funds do not have any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the four year period ended October 31, 2009 remains subject to examination by the Internal Revenue Service. If applicable, the Funds recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statements of Operations.
Dividends are categorized in accordance with income tax regulations which may treat certain transactions differently than U.S. generally accepted accounting principles. Accordingly, the character of
52
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
distributions and composition of net assets for tax purposes may differ from those reflected in the accompanying financial statements.
The tax character of distributions paid during the six months ended April 30, 2010 and fiscal year ended October 31, 2009 were as follows (in thousands):
Retirement Income and | ||||||||||||||||
High Yield Bond | Appreciation | |||||||||||||||
Six Months | Year Ended | Six Months | Year Ended | |||||||||||||
Ended April 30, | October 31, | Ended April 30, | October 31, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Distributions paid from: | ||||||||||||||||
Ordinary income* | ||||||||||||||||
Institutional Class | $ | 2,128 | $ | 6,264 | $ | — | $ | — | ||||||||
Investor Class | 4,227 | 4,848 | 1,810 | 3,577 | ||||||||||||
AMR Class | 5,279 | 8,707 | — | — | ||||||||||||
Long-term capital gain | — | |||||||||||||||
Institutional Class | — | — | — | — | ||||||||||||
Investor Class | — | — | — | 173 | ||||||||||||
AMR Class | — | — | — | — | ||||||||||||
Total distributions paid | $ | 11,634 | $ | 19,819 | $ | 1,810 | $ | 3,750 |
Intermediate Bond | Short-Term Bond | |||||||||||||||
Six Months | Year Ended | Six Months | Year Ended | |||||||||||||
Ended April 30, | October 31, | Ended April 30, | October 31, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Distributions paid from: | ||||||||||||||||
Ordinary income* | ||||||||||||||||
Institutional Class | $ | 4,187 | $ | 8,775 | $ | 1,870 | $ | 7,180 | ||||||||
Investor Class | 43 | 23 | 552 | 653 | ||||||||||||
AMR Class | — | — | — | — | ||||||||||||
Long-term capital gain | — | — | ||||||||||||||
Institutional Class | — | — | — | — | ||||||||||||
Investor Class | — | — | — | — | ||||||||||||
AMR Class | — | — | — | — | ||||||||||||
Total distributions paid | $ | 4,230 | $ | 8,798 | $ | 2,422 | $ | 7,833 |
* | For tax purposes, short-term capital gains are considered ordinary income distributions. |
As of April 30, 2010, the components of distributable earnings on a tax basis were as follows (in thousands):
High Yield | Retirement Income and | Intermediate | Short-Term | |||||||||||||
Bond | Appreciation | Bond | Bond | |||||||||||||
Cost basis of investments for federal income tax purpose | $ | 229,359 | $ | 111,094 | $ | 218,456 | $ | 166,207 | ||||||||
Unrealized appreciation | 19,089 | 5,841 | 8,606 | 2,348 | ||||||||||||
Unrealized depreciation | (4,242 | ) | (751 | ) | (404 | ) | (613 | ) | ||||||||
Net unrealized appreciation (depreciation) | 14,847 | 5,090 | 8,202 | 1,771 | ||||||||||||
Undistributed ordinary income | 329 | — | 503 | 537 | ||||||||||||
Undistributed long-term gain (loss) | (17,248 | ) | (2,232 | ) | 597 | (7,564 | ) | |||||||||
Other temporary differences | 174 | — | (1 | ) | — | |||||||||||
Distributable earnings (losses) | $ | (1,898 | ) | $ | 2,858 | $ | 9,301 | $ | (5,256 | ) |
Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences. The temporary differences between financial reporting and tax-basis reporting of unrealized appreciation/(depreciation) are attributable primarily to the
53
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
tax deferral of losses from wash sales, book amortization for premiums, and income adjustments associated with contingent payment debt instruments.
Due to inherent differences in the recognition of income, expenses and realized gains/losses under U.S. generally accepted accounting principles and federal income tax regulations, permanent differences between book and tax reporting have been identified and appropriately reclassified on the Statements of Assets and Liabilities.
Accordingly, the following amounts represent current year permanent differences derived from reclassifications of income from real estate investment securities, foreign currency, book amortization of premium, pay down reclasses, income adjustments associated with contingent payment debt instruments, and dividend reclasses that have been reclassified as of April 30, 2010 (in thousands):
Retirement | ||||||||||||||||
High Yield | Income and | Intermediate | Short-Term | |||||||||||||
Bond | Appreciation | Bond | Bond | |||||||||||||
Paid-in-capital | $ | 1 | $ | (350 | ) | $ | 1 | $ | (1 | ) | ||||||
Undistributed net investment income | (3 | ) | 392 | — | 191 | |||||||||||
Accumulated net realized gain (loss) | 3 | 164 | (1 | ) | (191 | ) | ||||||||||
Unrealized appreciation (depreciation) of investments and futures contracts | (1 | ) | (206 | ) | — | 1 |
At April 30, 2010 capital loss carry forward positions for federal income tax purposes were as follows (in thousands):
Fund | 2014 | 2015 | 2016 | 2017 | Total | |||||||||||||||
High Yield Bond | — | — | 8,321 | 8,926 | 17,247 | |||||||||||||||
Retirement Income and Appreciation | — | — | 1,768 | 465 | 2,233 | |||||||||||||||
Short-Term Bond | 1,899 | 467 | 5,198 | — | 7,564 |
The High Yield Bond, Retirement Income and Appreciation, Intermediate and Short-Term Bond Funds utilized $7,783, $290, $626 and $866, respectively of net capital loss carryovers for the six months ended April 30, 2010.
4. Investment Transactions
The aggregate cost of purchases and proceeds from sales and maturities of long-term investments during the six months ended April 30, 2010 were as follows (in thousands):
Retirement | Short- | |||||||||||||||
High Yield | Income and | Intermediate | Term | |||||||||||||
Bond | Appreciation | Bond | Bond | |||||||||||||
Purchases (excluding U.S. government securities) | $ | 254,171 | $ | 53,872 | $ | 113,553 | $ | 81,428 | ||||||||
Sales and maturities (excluding U.S. government securities) | 260,191 | 33,454 | 85,540 | 61,206 | ||||||||||||
Purchases of U.S. government securities | — | 23,241 | 67,943 | 14,901 | ||||||||||||
Sales and maturities of U.S. government securities | — | 11,798 | 42,037 | — |
54
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
5. Capital Share Transactions
The tables below summarize the activity in capital shares for each Class of the Funds (shares and dollars in thousands):
Six Months Ended April 30, 2010
Institutional Class | Y Class | Investor Class | AMR Class | |||||||||||||||||||||||||||||
High Yield Bond Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | 478 | $ | 4,117 | — | $ | 1 | 9,224 | $ | 79,713 | 15,331 | $ | 130,974 | ||||||||||||||||||||
Reinvestment of dividends | 134 | 1,164 | — | — | 479 | 4,160 | 609 | 5,279 | ||||||||||||||||||||||||
Shares redeemed | (1,113 | ) | (9,689 | )* | — | — | * | (9,189 | ) | (78,914 | )* | (16,009 | ) | (138,752 | )* | |||||||||||||||||
Net increase (decrease) in shares outstanding | (501 | ) | $ | (4,408 | ) | — | $ | 1 | 514 | $ | 4,959 | (69 | ) | $ | (2,499 | ) | ||||||||||||||||
* | Net of Redemption Fees |
Y Class | Investor Class | |||||||||||||||
Retirement Income and Appreciation Fund | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold | — | $ | 1 | 2,485 | $ | 25,668 | ||||||||||
Reinvestment of dividends | — | — | 175 | 1,808 | ||||||||||||
Shares redeemed | — | — | (555 | ) | (5,719 | ) | ||||||||||
Net increase in shares outstanding. | — | $ | 1 | 2,105 | $ | 21,757 | ||||||||||
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Intermediate Bond Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 2,527 | $ | 26,977 | — | $ | 1 | 69 | $ | 732 | |||||||||||||||
Reinvestment of dividends | 392 | 4,187 | — | — | 4 | 43 | ||||||||||||||||||
Shares redeemed | (1,615 | ) | (17,221 | ) | — | — | (19 | ) | (202 | ) | ||||||||||||||
Net increase in shares outstanding | 1,304 | $ | 13,943 | — | $ | 1 | 54 | $ | 573 | |||||||||||||||
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Short-Term Bond Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 1,404 | $ | 12,411 | — | $ | 1 | 4,339 | $ | 38,382 | |||||||||||||||
Reinvestment of dividends | 212 | 1,868 | — | — | 57 | 502 | ||||||||||||||||||
Shares redeemed | (1,705 | ) | (15,063 | ) | — | — | (2,784 | ) | (24,615 | ) | ||||||||||||||
Net increase (decrease) in shares outstanding | (89 | ) | $ | (784 | ) | — | $ | 1 | 1,612 | $ | 14,269 | |||||||||||||
Period Ended October 31, 2009
Institutional Class | Investor Class | AMR Class | ||||||||||||||||||||||
High Yield Bond Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 4,158 | $ | 27,998 | 16,984 | $ | 119,477 | 20,142 | $ | 150,035 | |||||||||||||||
Reinvestment of dividends | 601 | 4,158 | 626 | 4,738 | 1,177 | 8,706 | ||||||||||||||||||
Shares redeemed | (8,324 | ) | (58,240 | ) | (8,898 | ) | (65,269 | ) | (16,820 | ) | (131,893 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | (3,565 | ) | $ | (26,084 | ) | 8,712 | $ | 58,946 | 4,499 | $ | 26,848 | |||||||||||||
55
American Beacon Funds
Notes to Financial Statements
April 30, 2010 (Unaudited)
Investor Class | ||||||||
Retirement Income and Appreciation Fund | Shares | Amount | ||||||
Shares sold | 2,591 | $ | 24,626 | |||||
Reinvestment of dividends | 393 | 3,745 | ||||||
Shares redeemed | (5,256 | ) | (48,782 | ) | ||||
Net (decrease) in shares outstanding | (2,272 | ) | $ | (20,411 | ) | |||
Institutional Class | Investor Class | |||||||||||||||
Intermediate Bond Fund | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold | 14,857 | $ | 152,046 | 213 | $ | 2,222 | ||||||||||
Reinvestment of dividends | 850 | 8,774 | 2 | 23 | ||||||||||||
Shares redeemed | (11,318 | ) | (115,800 | ) | (8 | ) | (84 | ) | ||||||||
Net increase in shares outstanding | 4,389 | $ | 45,020 | 207 | $ | 2,161 | ||||||||||
Institutional Class | Investor Class | |||||||||||||||
Short-Term Bond Fund | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold | 4,547 | $ | 39,495 | 6,121 | $ | 53,499 | ||||||||||
Reinvestment of dividends | 827 | 7,178 | 59 | 518 | ||||||||||||
Shares redeemed | (21,058 | ) | (182,876 | ) | (3,640 | ) | (31,902 | ) | ||||||||
Net increase (decrease) in shares outstanding | (15,684 | ) | $ | (136,203 | ) | 2,540 | $ | 22,115 | ||||||||
6. Subsequent Events
Management has evaluated the possibility of subsequent events existing in the Funds’ financial statements. Management has determined that there are no material events that would require disclosure in the Funds’ financial statements.
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57
American Beacon High Yield Bond Fund
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | |||||||||||||||||||||||||||
Six | ||||||||||||||||||||||||||||
Months | ||||||||||||||||||||||||||||
Ended | March 1 | |||||||||||||||||||||||||||
April 30, | Year Ended October 31, | to April | ||||||||||||||||||||||||||
2010 | 2009 | 2008A | 2007 | 2006B | 2005 | 30, 2010 | ||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 8.42 | $ | 6.77 | $ | 10.11 | $ | 10.20 | $ | 10.22 | $ | 10.86 | $ | 8.63 | ||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.39 | 0.79 | 0.78 | 0.77 | 0.88 | 0.76 | 0.13 | |||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 0.47 | 1.66 | (3.34 | ) | (0.09 | ) | 0.09 | (0.84 | ) | 0.27 | ||||||||||||||||||
Total income (loss) from investment operations | 0.86 | 2.45 | (2.56 | ) | 0.68 | 0.97 | (0.08 | ) | 0.40 | |||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.38 | ) | (0.80 | ) | (0.78 | ) | (0.77 | ) | (0.88 | ) | (0.76 | ) | (0.13 | ) | ||||||||||||||
Distributions from net realized gains on securities | — | — | — | — | (0.11 | ) | 0.20 | — | ||||||||||||||||||||
Total distributions | (0.38 | ) | (0.80 | ) | (0.78 | ) | (0.77 | ) | (0.99 | ) | (0.56 | ) | (0.13 | ) | ||||||||||||||
Net asset value, end of period | $ | 8.90 | $ | 8.42 | $ | 6.77 | $ | 10.11 | $ | 10.20 | $ | 10.22 | $ | 8.90 | ||||||||||||||
Total return | 10.48 | %C | 39.06 | % | (27.03 | )% | 6.85 | % | 8.78 | % | 3.03 | % | 4.66 | %C | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 45,473 | $ | 47,254 | $ | 62,138 | $ | 114,911 | $ | 231,693 | $ | 216,744 | $ | 1 | ||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||
Expenses, net of waivers | 0.77 | % | 0.79 | % | 0.85 | % | 0.85 | % | 0.85 | % | 0.84 | % | 0.89 | %D | ||||||||||||||
Expenses, before waivers | 0.77 | % | 0.79 | % | 0.85 | % | 0.86 | % | 0.85 | % | 0.84 | % | 0.89 | %D | ||||||||||||||
Net investment income, net of waivers | 8.96 | % | 11.46 | % | 8.38 | % | 7.55 | % | 7.55 | % | 7.24 | % | 8.95 | %D | ||||||||||||||
Net investment income, before waivers | 8.96 | % | 11.46 | % | 8.38 | % | 7.54 | % | 7.55 | % | 7.24 | % | 8.95 | %D | ||||||||||||||
Portfolio turnover rate | 103 | %C | 212 | % | 157 | % | 92 | % | 88 | % | 128 | % | 103 | %C,E |
A | On May 21, 2008, Post Advisory Group, LLC ceased managing a portion of the High Yield Bond Fund and on May 22, 2008 Logan Circle Partners, L.P. began managing a portion of the High Yield Bond Fund. | |
B | Franklin Advisers, Inc. was added as an investment advisor to the High Yield Bond Fund on September 12, 2006. | |
C | Not annualized. | |
D | Annualized. | |
E | Portfolio turnover rate is for the period from November 1, 2009 through April 30, 2010. | |
F | Portfolio turnover rate is for the period from November 1, 2006 through October 31, 2007. |
58
Investor Class | AMR Class | |||||||||||||||||||||||||||||||||||||||
Six | Six | |||||||||||||||||||||||||||||||||||||||
Months | Months | September | ||||||||||||||||||||||||||||||||||||||
Ended | Ended | 4 to | ||||||||||||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | April 30, | Year Ended October 31, | October | ||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2008A | 2007 | 2006B | 2005 | 2010 | 2009 | 2008A | 31, 2007 | |||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||
$ | 8.42 | $ | 6.77 | $ | 10.11 | $ | 10.21 | $ | 10.22 | $ | 10.87 | $ | 8.42 | $ | 6.77 | $ | 10.11 | $ | 9.94 | |||||||||||||||||||||
0.37 | 0.78 | 0.75 | 0.75 | 0.85 | 0.74 | 0.40 | 0.81 | 0.80 | 0.12 | |||||||||||||||||||||||||||||||
0.48 | 1.65 | (3.34 | ) | (0.10 | ) | 0.10 | (0.85 | ) | 0.48 | 1.65 | (3.34 | ) | 0.17 | |||||||||||||||||||||||||||
0.85 | 2.43 | (2.59 | ) | 0.65 | 0.95 | (0.11 | ) | 0.88 | 2.46 | (2.54 | ) | 0.29 | ||||||||||||||||||||||||||||
(0.37 | ) | (0.78 | ) | (0.75 | ) | (0.75 | ) | (0.85 | ) | (0.74 | ) | (0.40 | ) | (0.81 | ) | (0.80 | ) | (0.12 | ) | |||||||||||||||||||||
— | — | — | — | (0.11 | ) | 0.20 | — | — | — | — | ||||||||||||||||||||||||||||||
(0.37 | ) | (0.78 | ) | (0.75 | ) | (0.75 | ) | (0.96 | ) | (0.54 | ) | (0.40 | ) | (0.81 | ) | (0.80 | ) | (0.12 | ) | |||||||||||||||||||||
$ | 8.90 | $ | 8.42 | $ | 6.77 | $ | 10.11 | $ | 10.21 | $ | 10.22 | $ | 8.90 | $ | 8.42 | $ | 6.77 | $ | 10.11 | |||||||||||||||||||||
10.34 | %C | 38.70 | % | (27.24 | )% | 6.52 | % | 8.63 | % | 2.69 | % | 10.61 | %C | 39.41 | % | (26.84 | )% | 2.94 | %C | |||||||||||||||||||||
$ | 100,465 | $ | 90,736 | $ | 13,949 | $ | 28,758 | $ | 80,284 | $ | 120,360 | $ | 97,317 | $ | 92,659 | $ | 44,060 | $ | 82,322 | |||||||||||||||||||||
1.03 | % | 1.01 | % | 1.10 | % | 1.08 | % | 1.08 | % | 1.08 | % | 0.53 | % | 0.53 | % | 0.58 | % | 0.61 | %D | |||||||||||||||||||||
1.03 | % | 1.01 | % | 1.10 | % | 1.08 | % | 1.08 | % | 1.08 | % | 0.53 | % | 0.53 | % | 0.58 | % | 0.61 | %D | |||||||||||||||||||||
8.68 | % | 9.36 | % | 8.06 | % | 7.32 | % | 7.33 | % | 7.00 | % | 9.13 | % | 10.34 | % | 8.64 | % | 7.54 | %D | |||||||||||||||||||||
8.68 | % | 9.36 | % | 8.06 | % | 7.32 | % | 7.33 | % | 7.00 | % | 9.13 | % | 10.34 | % | 8.64 | % | 7.54 | %D | |||||||||||||||||||||
103 | %C | 212 | % | 157 | % | 92 | % | 88 | % | 128 | % | 103 | %C | 212 | % | 157 | % | 92 | %F |
59
American Beacon Retirement Income and Appreciation Fund
Financial Highlights
(For a share outstanding throughout the period)
Y Class | Investor Class | |||||||||||||||||||||||||||
Six | ||||||||||||||||||||||||||||
Months | ||||||||||||||||||||||||||||
March 1 | Ended | |||||||||||||||||||||||||||
to April | April 30, | Year Ended October 31, | ||||||||||||||||||||||||||
30, 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.31 | $ | 10.25 | $ | 8.80 | $ | 10.50 | $ | 10.25 | $ | 9.98 | $ | 10.16 | ||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.05 | 0.21 | 0.32 | 0.41 | 0.36 | 0.33 | 0.29 | |||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 0.10 | 0.13 | 1.53 | (1.39 | ) | 0.32 | 0.29 | (0.16 | ) | |||||||||||||||||||
Total income (loss) from investment operations | 0.15 | 0.34 | 1.85 | (0.98 | ) | 0.68 | 0.62 | 0.13 | ||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.05 | ) | (0.17 | ) | (0.40 | ) | (0.49 | ) | (0.42 | ) | (0.35 | ) | (0.31 | ) | ||||||||||||||
Distributions from net realized gains on securities | — | — | — | (0.23 | ) | (0.01 | ) | — | — | |||||||||||||||||||
Return of capital | — | — | 0.00 | D | — | — | — | — | ||||||||||||||||||||
Total distributions | (0.05 | ) | (0.17 | ) | (0.40 | ) | (0.72 | ) | (0.43 | ) | (0.35 | ) | (0.31 | ) | ||||||||||||||
Net asset value, end of period | $ | 10.41 | $ | 10.42 | $ | 10.25 | $ | 8.80 | $ | 10.50 | $ | 10.25 | $ | 9.98 | ||||||||||||||
Total return | 1.48 | %A | 3.30 | %A | 21.50 | % | (10.02 | )% | 6.75 | % | 6.36 | % | 1.32 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1 | $ | 117,182 | $ | 93,727 | $ | 100,469 | $ | 99,789 | $ | 125,915 | $ | 112,341 | ||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||
Expenses | 0.67 | %B | 1.09 | % | 1.01 | % | 0.92 | % | 0.94 | % | 0.93 | % | 0.92 | % | ||||||||||||||
Expenses, before waivers | 0.67 | %B | 1.09 | % | 1.01 | % | 0.92 | % | 0.94 | % | 0.93 | % | 0.92 | % | ||||||||||||||
Net investment income | 3.12 | %B | 2.92 | % | 3.86 | % | 3.64 | % | 3.69 | % | 3.21 | % | 2.79 | % | ||||||||||||||
Net investment income, before waivers | 3.12 | %B | 2.92 | % | 3.86 | % | 3.64 | % | 3.69 | % | 3.21 | % | 2.79 | % | ||||||||||||||
Portfolio turnover rate | 32 | %A,C | 32 | %A | 53 | % | 76 | % | 103 | % | 65 | % | 41 | % |
A | Not annualized. | |
B | Annualized. | |
C | Portfolio turnover rate is for the period from November 1, 2009 through April 30, 2010. | |
D | The tax return of capital is calculated based upon outstanding shares at the time of distribution. Amounts are less than $0.01 per share. |
60
American Beacon Intermediate Bond Fund
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class (formerly AMR Class prior to 3/1/05) | Y Class | Investor Class | ||||||||||||||||||||||||||||||||||
Six Months | Six Months | March 2 | ||||||||||||||||||||||||||||||||||
Ended | March 1 | Ended | to | |||||||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | to April | April 30, | October | ||||||||||||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005A | 30, 2010 | 2010 | 31, 2009 | ||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.69 | $ | 9.61 | $ | 10.10 | $ | 10.02 | $ | 10.01 | $ | 10.33 | $ | 10.69 | $ | 10.68 | $ | 10.14 | ||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||||||
Net investment income | 0.21 | 0.46 | 0.50 | 0.50 | 0.46 | 0.42 | 0.06 | 0.18 | 0.27 | |||||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 0.03 | 1.07 | (0.51 | ) | 0.07 | 0.02 | (0.29 | ) | 0.04 | 0.03 | 0.54 | |||||||||||||||||||||||||
Total income (loss) from investment operations | 0.24 | 1.53 | (0.01 | ) | 0.57 | 0.48 | 0.13 | 0.10 | 0.21 | 0.81 | ||||||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.20 | ) | (0.45 | ) | (0.48 | ) | (0.49 | ) | (0.47 | ) | (0.45 | ) | (0.06 | ) | (0.18 | ) | (0.27 | ) | ||||||||||||||||||
Distributions from net realized gains on securities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total distributions | (0.20 | ) | (0.45 | ) | (0.48 | ) | (0.49 | ) | (0.47 | ) | (0.45 | ) | (0.06 | ) | (0.18 | ) | (0.27 | ) | ||||||||||||||||||
Net asset value, end of period | $ | 10.73 | $ | 10.69 | $ | 9.61 | $ | 10.10 | $ | 10.02 | $ | 10.01 | $ | 10.73 | $ | 10.71 | $ | 10.68 | ||||||||||||||||||
Total return | 2.31 | %B | 16.17 | % | (0.26 | )% | 5.83 | % | 4.96 | % | 1.26 | % | 0.97 | %B | 2.03 | %B | 8.05 | %B | ||||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 225,830 | $ | 210,983 | $ | 147,634 | $ | 109,674 | $ | 97,319 | $ | 93,270 | $ | 1 | $ | 2,795 | $ | 2,213 | ||||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||||||
Expenses, net of waivers | 0.35 | % | 0.32 | % | 0.30 | % | 0.34 | % | 0.35 | % | 0.31 | % | 0.44 | %C | 0.72 | % | 0.81 | %C | ||||||||||||||||||
Expenses, before waivers | 0.35 | % | 0.32 | % | 0.30 | % | 0.34 | % | 0.35 | % | 0.31 | % | 0.71 | %C | 0.85 | % | 1.22 | %C | ||||||||||||||||||
Net investment income, net of waivers | 3.86 | % | 4.32 | % | 4.70 | % | 4.86 | % | 4.64 | % | 4.12 | % | 3.57 | %C | 3.48 | % | 3.74 | %C | ||||||||||||||||||
Net investment income, before waivers | 3.86 | % | 4.31 | % | 4.70 | % | 4.86 | % | 4.64 | % | 4.12 | % | 3.30 | %C | 3.34 | % | 3.33 | %C | ||||||||||||||||||
Portfolio turnover rate | 41 | %B | 157 | % | 105 | % | 85 | % | 122 | % | 119 | % | 41 | %B,D | 41 | %B | 157 | %E |
A | On March 1, 2005, the existing Institutional Class shares were terminated and exchanged for AMR Class shares at a conversion rate of 1.0202. Following this exchange, the former AMR Class Shares were re-named Institutional Class. | |
B | Not annualized. | |
C | Annualized. | |
D | Portfolio turnover rate is for the period from November 1, 2009 through April 30, 2010. | |
E | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. |
61
American Beacon Short-Term Bond Fund
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | ||||||||||||||||||||||||
Six | ||||||||||||||||||||||||
Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
April 30, | Year Ended October 31, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005A | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 8.83 | $ | 8.58 | $ | 8.79 | $ | 8.74 | $ | 8.75 | $ | 9.07 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.10 | 0.22 | B | 0.35 | B | 0.39 | B | 0.32 | B | 0.29 | ||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 0.04 | 0.33 | (0.15 | ) | 0.09 | 0.07 | (0.20 | ) | ||||||||||||||||
Total income from investment operations | 0.14 | 0.55 | 0.20 | 0.48 | 0.39 | 0.09 | ||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Dividends from net investment income | (0.13 | ) | (0.30 | ) | (0.41 | ) | (0.43 | ) | (0.40 | ) | (0.41 | ) | ||||||||||||
Distributions from net realized gains on securities | — | — | — | — | — | — | ||||||||||||||||||
Total distributions | (0.13 | ) | (0.30 | ) | (0.41 | ) | (0.43 | ) | (0.40 | ) | (0.41 | ) | ||||||||||||
Net asset value, end of period | $ | 8.84 | $ | 8.83 | $ | 8.58 | $ | 8.79 | $ | 8.74 | $ | 8.75 | ||||||||||||
Total return | 1.63 | %C | 6.56 | % | 2.21 | % | 5.61 | % | 4.56 | % | 1.00 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 124,186 | $ | 124,791 | $ | 255,725 | $ | 89,427 | $ | 73,417 | $ | 79,683 | ||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||
Expenses, net of waivers | 0.39 | % | 0.33 | % | 0.31 | % | 0.37 | % | 0.35 | % | 0.33 | % | ||||||||||||
Expenses, before waivers | 0.39 | % | 0.33 | % | 0.31 | % | 0.37 | % | 0.35 | % | 0.33 | % | ||||||||||||
Net investment income, net of waivers | 2.30 | % | 2.62 | % | 3.75 | % | 4.48 | % | 3.64 | % | 3.15 | % | ||||||||||||
Net investment income, before waivers | 2.30 | % | 2.61 | % | 3.75 | % | 4.48 | % | 3.64 | % | 3.15 | % | ||||||||||||
Portfolio turnover rate | 39 | %C | 140 | % | 21 | % | 40 | % | 48 | % | 38 | % |
A | On March 1, 2005, the existing Institutional Class shares were terminated and exchanged for AMR Class shares at a conversion rate of 1.0014. Following this exchange, the former AMR Class Shares were re-named Institutional Class. | |
B | For purposes of this calculation, the change in undistributed net investment income per share was derived by dividing the change in undistributed net investment income by average shares outstanding for the period. | |
C | Not annualized. | |
D | Annualized. | |
E | Portfolio turnover rate is for the period from November 1, 2009 through April 30, 2010. |
62
Y Class | Investor Class | |||||||||||||||||||||||||||
Six | ||||||||||||||||||||||||||||
Months | ||||||||||||||||||||||||||||
March 1 | Ended | |||||||||||||||||||||||||||
to April | April 30, | Year Ended October 31, | ||||||||||||||||||||||||||
30, 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
$ | 8.84 | $ | 8.84 | $ | 8.59 | $ | 8.81 | $ | 8.76 | $ | 8.77 | $ | 9.09 | |||||||||||||||
0.04 | 0.09 | B | 0.20 | B | 0.29 | B | 0.35 | B | 0.27 | B | 0.28 | |||||||||||||||||
0.01 | 0.04 | 0.34 | (0.15 | ) | 0.09 | 0.07 | (0.24 | ) | ||||||||||||||||||||
0.05 | 0.13 | 0.54 | 0.14 | 0.44 | 0.34 | 0.04 | ||||||||||||||||||||||
(0.04 | ) | (0.12 | ) | (0.29 | ) | (0.36 | ) | (0.39 | ) | (0.35 | ) | (0.36 | ) | |||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||||
(0.04 | ) | (0.12 | ) | (0.29 | ) | (0.36 | ) | (0.39 | ) | (0.35 | ) | (0.36 | ) | |||||||||||||||
$ | 8.85 | $ | 8.85 | $ | 8.84 | $ | 8.59 | $ | 8.81 | $ | 8.76 | $ | 8.77 | |||||||||||||||
0.59 | %C | 1.53 | %C | 6.34 | % | 1.54 | % | 5.08 | % | 4.01 | % | 0.46 | % | |||||||||||||||
$ | 1 | $ | 44,709 | $ | 30,402 | $ | 7,733 | $ | 2,976 | $ | 7,189 | $ | 8,582 | |||||||||||||||
0.42 | %D | 0.62 | % | 0.54 | % | 0.85 | % | 0.87 | % | 0.88 | % | 0.87 | % | |||||||||||||||
0.66 | %D | 0.88 | % | 0.85 | % | 0.88 | % | 0.98 | % | 0.90 | % | 0.94 | % | |||||||||||||||
2.82 | %D | 2.03 | % | 2.20 | % | 3.19 | % | 3.91 | % | 3.10 | % | 2.59 | % | |||||||||||||||
2.58 | %D | 1.76 | % | 1.89 | % | 3.16 | % | 3.81 | % | 3.08 | % | 2.52 | % | |||||||||||||||
39 | %C,E | 39 | %C | 140 | % | 21 | % | 40 | % | 48 | % | 38 | % |
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Delivery of Documents
To reduce expenses, your financial institution may mail only one copy of the Prospectus, Annual Report and Semi-Annual Report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please contact your financial institution. Delivery of individual copies will commence thirty days after receiving your request.
If you invest in the Fund through a financial institution, you may be able to receive the Fund’s regulatory mailings, such as the Prospectus, Annual Report and Semi-Annual Report, by e-mail. If you are interested in this option, please go to www.icsdelivery.com and search for your financial institution’s name or contact your financial institution directly.
To obtain more information about the Fund:
![]() | ![]() | |
By E-mail: | On the Internet: | |
american_beacon.funds@ambeacon.com | Visit our website at www.americanbeaconfunds.com | |
![]() | ![]() | |
By Telephone: | By Mail: | |
Institutional Class | American Beacon Funds | |
Call (800) 658-5811 | P.O. Box 219643 | |
AMR ClassSM | Kansas City, MO 64121-9643 | |
Call (800) 345-2345 | ||
Investor Class® Class | ||
Call (800) 388-3344 |
Availability of Quarterly Portfolio Schedules | Availability of Proxy Voting Policy and Records | |
In addition to the Schedule of Investments provided in each semi-annual and annual report, the Fund files a complete schedule of its portfolio holdings with the Securities and Exchange Commission (“SEC”) on Form N-Q as of the first and third fiscal quarters. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room, 450 Fifth Street, NW, Washington, DC 20549. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330. A complete schedule of the Fund’s portfolio holdings is also available on the Funds’ website (www.americanbeaconfunds.com) approximately thirty days after the end of each month. | A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Fund’s Statement of Additional Information, is available free of charge on the Fund’s website (www.americanbeaconfunds.com) and by calling 1-800-967-9009 or by accessing the SEC’s website at www.sec.gov. The Fund’s proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Fund’s Forms N-PX are available on the SEC’s website at www.sec.gov. The Fund’s proxy voting record may also be obtained by calling 1-800-967-9009. |
Fund Service Providers:
Custodian State Street Bank and Trust Boston, Massachusetts | Transfer Agent Boston Financial Data Services Kansas City, Missouri | Independent Registered Public Accounting Firm Ernst & Young LLP Dallas, Texas | Distributor Foreside Fund Services Portland, Maine |
This report is prepared for shareholders of the American Beacon Funds and may be distributed to others only if preceded or accompanied by a current prospectus.
American Beacon Funds, American Beacon High Yield Bond Fund, American Beacon Retirement Income and Appreciation Fund, American Beacon Intermediate Bond and American Beacon Short-Term Bond Fund are service marks of American Beacon Advisors, Inc.
SAR 04/10
00074811
ITEM 2. CODE OF ETHICS.
The Trust amended the code of ethics by updating the names of the principal executive and financial officers. The Trust did not grant any waivers to the provisions of the Code during the period covered by the shareholder reports presented in Item 1.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not Applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not Applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
The schedules of investments for each series of the Trust are included in the shareholder reports presented in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Trust has made no material changes to the procedures by which shareholders may recommend nominees to the Trust's Board of Trustees since the Trust last disclosed such procedures in Schedule 14A.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based upon an evaluation within 90 days of the filing date of this report, the principal executive and financial officers concluded that the disclosure controls and procedures of the Trust are effective.
(b) There were no changes in the Trust's internal control over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Filed herewith as EX-99.CODE ETH.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the Trust as required by Rule
30a-2(a) under the Investment Company Act of 1940 is attached hereto as EX-99.CERT.
(a)(3) Not applicable.
(b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940 are attached hereto as EX-99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant): American Beacon Funds
![](https://capedge.com/proxy/N-CSR/0000809593-10-000032/genesig.gif)
Gene L. Needles, Jr. | |
President | |
American Beacon Funds |
Date: July 8, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
![](https://capedge.com/proxy/N-CSR/0000809593-10-000032/genesig.gif)
Gene L. Needles, Jr. | |
President | |
American Beacon Funds |
Date: July 8, 2010
![](https://capedge.com/proxy/N-CSR/0000809593-10-000032/melindasig.jpg)
Melinda G. Heika | |
Treasurer | |
American Beacon Funds |
Date: July 8, 2010