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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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)
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)
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, 2011
Date of reporting period: April 30, 2011
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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.
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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, 2011 |
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![(IMAGE)](https://capedge.com/proxy/N-CSRS/0000950123-11-064403/d83264d8326401.jpg)
For the six-month period ended April 30, 2011:
Fellow Shareholders,
Over the past six months, the equity markets have generally rallied on, despite concerns for the pace of the global economic recovery, reoccurrences of sovereign debt worries, geopolitical unrest, inflation fears and the potential impact of Japan’s recent earthquake. Though challenging, these factors were offset by increasing reports of strength in corporate earnings and the persistence of the U.S. recovery.
The performance of our equity funds reflects this strength as well. It also reflects the American Beacon investment philosophy: that portfolios managed with a longer-term perspective tend to be better positioned for riding out the inevitable waves of economic and geopolitical upheaval.
>> American Beacon Large Cap Value Fund (Institutional Class) rose 15.16%
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.
While day-to-day volatility continues to influence the world’s equity and credit markets, American Beacon remains focused on seeking opportunities and meeting market challenges to deliver the type of consistency in performance and service our shareholders value.
Our process is summarized as: Oversight 360. It’s an ongoing commitment to cast a watchful and analytical eye over all the factors that influence our fellow shareholders’ investments.
Thank you for your continued investment in the American Beacon Funds. To obtain further details about the growing number of investment opportunities now available within the American Beacon Funds family or to access your account information, please visit our website at www.americanbeaconfunds.com.
Best Regards, | ||||
![]() | ||||
Gene L. Needles, Jr. President American Beacon Funds |
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Domestic Equity Market Overview
April 30, 2011 (Unaudited)
April 30, 2011 (Unaudited)
The stock market rallied over the six months ending April 30, 2011, with most indices posting their highest price levels in over two years. This performance was remarkable given the numerous challenges that arose during the period—multiple conflicts in the Middle East and Northern Africa, rising food and energy prices globally, concerns about rising debt risks both domestically and overseas, and the economic after-effects of Japan’s earthquake and tsunami. While some of these events took a tremendous toll in terms of human life and suffering, investors ultimately did not see them as leading to the derailment of the U.S. economic recovery.
Although overall U.S. economic growth was only moderate during the period, improved profitability and stronger corporate balance sheets continued to provide positive momentum for the U.S. equity market. In addition, healthy business-to-business spending, especially in technology and manufacturing, added to positive returns.
Exports had also been a bright spot for the overall economy. Growth in some overseas economies had been much stronger than in the U.S, which benefitted those companies with higher levels of overseas sales. Energy sector stocks in particular were big winners, thanks to rising oil prices. However, investor concerns for rapidly rising energy and commodity prices globally dampened overall market enthusiasm in the early part of 2011. By March, the stock market had climbed “the wall of worry,” boosted by corporate earnings and valuation levels. Ultimately, the S&P 500 Index rose 16.4% and the Russell 1000 Value Index gained 17.3% during the period.
Corporate America’s strengthening financial position appeared to be the result of aggressive retrenchment during the economic crisis of 2008. During this period, S&P 500 companies amassed nearly $1 trillion of cash on their balance sheets. These same companies also announced over $260 billion in acquisitions and approved over $150 billion in share repurchases. Many companies have also expressed their intention to increase dividends and/or capital expenditures in the coming year—and some had actually already done so. This highlights a considerable mindset shift from a year ago, when management teams seemed satisfied stockpiling cash despite the paltry yield it was earning—a situation Japan had contended with for decades. Determining how companies will spend their cash is of great interest—and is critical to the market—in the near term, since the effectiveness of a company’s cash deployment will greatly influence its future stock performance.
Also helping to propel the market over the past six months were: the extension of Bush-era tax rates and other measures for an additional two years by Congress; and the positive effects of the Federal Reserve’s second phase of quantitative easing (QE2). This occurred in spite of persistently high unemployment, sagging home sales, and continued fears over European Union sovereign debt risk.
A self-sustaining recovery was leading the economic expansion, but one key critical variable for the economy and stock market remains domestic employment. Private sector employment had seen recent gains, but initial unemployment claims had been moving higher in recent reports. Yet, higher stock prices and the resulting wealth effect were fueling consumer spending. Businesses were returning capital to investors, bank lending had increased and consumer credit card delinquencies are down—all signs that U.S. economic activity is on stronger footing and could be poised for continued growth in 2011.
Looking forward, the Federal Reserve’s QE2 program for direct purchases of Treasury bonds is set to finish at the end of June, and it remains to be seen whether this will have negative effects on interest rates. In addition, the ongoing debate in Washington, D.C. over the Federal budget and deficit reduction is likely to continue to attract investor interest and attention. Any significant progress on deficit reduction could be perceived as a major improvement in the economic fundamentals by the market.
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Performance Overview
American Beacon Large Cap Value FundSM
April 30, 2011 (Unaudited)
American Beacon Large Cap Value FundSM
April 30, 2011 (Unaudited)
The Institutional Class of the Large Cap Value Fund returned 15.16% for the six months ended April 30, 2011, underperforming the Russell 1000® Value Index (“Index”) return of 17.29% and the Lipper Large-Cap Value Funds Index return of 16.50%.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/11 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,8) | 15.16 | % | 14.42 | % | 1.73 | % | 5.61 | % | ||||||||
Y Class (1,2,8) | 15.13 | % | 14.27 | % | 1.69 | % | 5.59 | % | ||||||||
Investor Class(1,8). | 14.95 | % | 13.98 | % | 1.43 | % | 5.31 | % | ||||||||
Advisor Class(1,3,8) | 14.85 | % | 13.81 | % | 1.23 | % | 5.17 | % | ||||||||
Retirement Class (1,4,8) | 14.74 | % | 13.50 | % | 1.11 | % | 5.11 | % | ||||||||
A Class with sales charge (1,5,8) | 8.33 | % | 7.41 | % | .23 | % | 4.68 | % | ||||||||
A Class without sales charge (1,5,8) | 14.91 | % | 13.94 | % | 1.42 | % | 5.30 | % | ||||||||
C Class with sales charge (1,6,8) | 13.39 | % | 12.23 | % | 1.30 | % | 5.24 | % | ||||||||
C Class without sales charge (1,6,8) | 14.39 | % | 13.23 | % | 1.30 | % | 5.24 | % | ||||||||
AMR Class(1,8) | 15.27 | % | 14.65 | % | 1.99 | % | 5.88 | % | ||||||||
Lipper Large-Cap Value Funds Index (7) | 16.50 | % | 14.98 | % | 1.87 | % | 3.02 | % | ||||||||
Russell 1000 Value Index (7) | 17.29 | % | 15.24 | % | 1.40 | % | 4.31 | % |
* | 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 five-year and ten-year periods represents the total returns achieved by the Institutional Class from 4/30/01 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 4/30/01. | |
3. | Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/01 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 4/30/01. 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 for 2005. | |
4. | Fund performance for the five-year and ten-year periods represents the total returns achieved by the Investor Class from 4/30/01 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 4/30/01. | |
5. | Fund performance for the one-year, five-year, and ten-year periods represents the total returns achieved by the Investor Class from 4/30/01 through 5/17/10, the inception date of the A Class, and the returns of the A Class since its inception. Expenses of the A 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 A Class been in existence since 4/30/01. A Class shares have a maximum sales charge of 5.75%. | |
6. | Fund performance for the one-year, five-year, and ten-year periods represents the total returns achieved by the Investor Class from 4/30/01 through 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the C 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 C Class been in existence since 4/30/01. C Class has a maximum contingent deferred sales charge of 1.00% for shares redeemed within one year of the date of purchase. | |
7. | 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. | |
8. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, Retirement, A, C, and AMR Class shares was 0.60%, 0.71%, 0.97% 1.11%, 1.38%, 1.07%, 1.88%, and 0.35% respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are |
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Performance Overview
American Beacon Large Cap Value FundSM
April 30, 2011 (Unaudited)
American Beacon Large Cap Value FundSM
April 30, 2011 (Unaudited)
based on expenses incurred during the period covered by this report.
The Fund underperformed the Index primarily due to stock selection as sector allocation detracted minimal value relative to the Index. The Fund’s holdings in the Industrials, Energy and Information Technology sectors detracted the most value from performance. For the period the Fund owned the securities, companies in the Industrials sector with the greatest impact to the Fund’s relative underperformance were Northrop Grumman (up 4.9%), Boeing (up 12.9%) and Deere (up 7.6%). In the Energy sector, Weatherford International (up 23.8%), HESS (up 31.5%) and Marathon Oil (up 23.1%) for the period the Fund owned the securities, hurt performance most. In the Information Technology sector, Cisco Systems (down 22.5%), Hewlett Packard (down 3.3%) and Tyco Electronics (down 7.9% for the period the Fund owned the security) were the largest detractors. Good stock selection in the Consumer Staples sector, where Diageo (up 12.2%) and Imperial Tobacco Group (up 14.2%) were the largest contributors, added relative value.
The Fund’s two times overweight in Information Technology, one of the poorer performing sectors in the Index, detracted value relative to the Index through sector allocation. An underweight in Utilities, the worst performing sector in the Index, added value to the Fund’s return; however, the positive return did not negate the aforementioned poor 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 | ||||
JPMorgan Chase & Co. | 3.4 | % | ||
ConocoPhillips | 3.1 | % | ||
Wells Fargo & Co. | 2.8 | % | ||
Bank of America Corp. | 2.7 | % | ||
Vodafone Group plc. | 2.3 | % | ||
Hewlett-Packard Co. | 2.3 | % | ||
Pfizer, Inc. | 2.3 | % | ||
Microsoft Corp. | 1.9 | % | ||
International Business Machines Corp. | 1.8 | % | ||
PNC Financial Services Group, Inc. | 1.8 | % |
Sector Allocation
% of Equities | ||||
Financials | 25.5 | % | ||
Information Technology | 12.3 | % | ||
Energy | 11.9 | % | ||
Health Care | 10.8 | % | ||
Industrials | 10.3 | % | ||
Consumer Discretionary | 8.5 | % | ||
Consumer Staples | 8.2 | % | ||
Telecommunication Services | 4.6 | % | ||
Utilities | 4.3 | % | ||
Materials | 3.6 | % |
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Fund Expenses
American Beacon Large Cap Value FundSM
April 30, 2010 (Unaudited)
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, 2010 through April 30, 2011.
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 $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 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 $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 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.
Beginning | Expenses Paid | |||||||||||
Account Value | Ending Account | During Period* | ||||||||||
11/1/10 | Value 4/30/11 | 11/1/10-4/30/11 | ||||||||||
Institutional Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,151.58 | $ | 3.07 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,021.94 | $ | 2.89 | ||||||
Y Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,151.32 | $ | 3.66 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,021.39 | $ | 3.44 | ||||||
Investor Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,149.53 | $ | 5.03 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,020.12 | $ | 4.73 | ||||||
Advisor Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,148.49 | $ | 5.73 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,019.46 | $ | 5.38 | ||||||
Retirement Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,147.43 | $ | 7.12 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,018.16 | $ | 6.70 | ||||||
AMR Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,152.71 | $ | 1.74 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,023.18 | $ | 1.63 | ||||||
A Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,149.11 | $ | 5.71 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,019.48 | $ | 5.37 | ||||||
C Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,143.90 | $ | 9.64 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,015.82 | $ | 9.06 |
* | Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.58%, 0.69%, 0.94%, 1.07%, 1.34%, 0.33%, 1.07% and 1.81% for the Institutional, Y, Investor, Advisor, Retirement, AMR, A and C 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% return before expenses. |
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American Beacon Large Cap Value FundSM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
COMMON STOCK — 96.22% | ||||||||
CONSUMER DISCRETIONARY — 7.80% | ||||||||
Auto Components — 0.68% | ||||||||
Johnson Controls, Inc. | 802,425 | 32,900 | ||||||
Magna International, Inc. | 616,200 | 31,580 | ||||||
64,480 | ||||||||
Automobiles — 0.63% | ||||||||
General Motors Co.A | 830,423 | 26,648 | ||||||
Toyota Motor Corp., ADRB | 414,600 | 33,036 | ||||||
59,684 | ||||||||
Hotels, Restaurants & Leisure — 1.19% | ||||||||
Carnival Corp. | 961,000 | 36,585 | ||||||
McDonald’s Corp. | 549,481 | 43,030 | ||||||
Wyndham Worldwide Corp. | 970,580 | 33,592 | ||||||
113,207 | ||||||||
Household Durables — 0.11% | ||||||||
Pulte Group, Inc. | 229,660 | 1,867 | ||||||
Stanley Black & Decker, Inc. | 116,714 | 8,479 | ||||||
10,346 | ||||||||
Leisure Equipment & Products — 0.06% | ||||||||
Hasbro, Inc. | 122,607 | 5,743 | ||||||
Media — 1.60% | ||||||||
CBS Corp. | 1,451,800 | 36,614 | ||||||
Comcast Corp. | 1,736,200 | 42,624 | ||||||
Omnicom Group, Inc. | 204,227 | 10,046 | ||||||
The Interpublic Group of Cos Inc. | 1,075,500 | 12,637 | ||||||
The Walt Disney Co. | 290,325 | 12,513 | ||||||
Time Warner Cable, Inc. | 394,600 | 30,830 | ||||||
Viacom, Inc., Class B | 133,050 | 6,807 | ||||||
152,071 | ||||||||
Multiline Retail — 1.03% | ||||||||
JC Penney Co., Inc. | 1,640,600 | 63,080 | ||||||
Kohl’s Corp. | 62,032 | 3,270 | ||||||
Target Corp. | 646,000 | 31,719 | ||||||
98,069 | ||||||||
Specialty Retail — 2.50% | ||||||||
Abercrombie & Fitch Co. | 493,080 | 34,910 | ||||||
Advance Auto Parts, Inc. | 69,046 | 4,520 | ||||||
Best Buy Co, Inc. | 984,100 | 30,724 | ||||||
Home Depot, Inc. | 946,267 | 35,144 | ||||||
RadioShack Corp. | 1,028,100 | 16,254 | ||||||
Staples, Inc. | 171,687 | 3,629 | ||||||
The Gap, Inc. | 4,485,700 | 104,248 | ||||||
The Sherwin-Williams Co. | 100,666 | 8,284 | ||||||
237,713 | ||||||||
Total Consumer Discretionary | 741,313 | |||||||
CONSUMER STAPLES — 7.92% | ||||||||
Beverages — 2.00% | ||||||||
Diageo plc, ADRB | 1,153,016 | 93,821 | ||||||
PepsiCo, Inc. | 1,398,590 | 96,349 | ||||||
190,170 | ||||||||
Food & Drug Retailing — 2.20% | ||||||||
CVS Caremark Corp. | 2,569,163 | 93,106 | ||||||
Safeway, Inc. | 1,083,000 | 26,328 | ||||||
Sysco Corp. | 436,740 | 12,626 | ||||||
Walgreen Co. | 42,503 | 1,816 | ||||||
Wal-Mart Stores, Inc. | 1,360,760 | 74,815 | ||||||
208,691 | ||||||||
Food Products — 0.62% | ||||||||
General Mills, Inc. | 352,465 | 13,598 | ||||||
Kellogg Co. | 125,169 | 7,168 | ||||||
Kraft Foods, Inc. | 679,900 | 22,832 | ||||||
Nestle S.A., ADRB | 187,082 | 11,637 | ||||||
The JM Smucker Co. | 52,957 | 3,975 | ||||||
59,210 | ||||||||
Household Products — 0.20% | ||||||||
Kimberly-Clark Corp. | 212,800 | 14,058 | ||||||
The Procter & Gamble Co. | 81,579 | 5,294 | ||||||
19,352 | ||||||||
Personal Products — 0.02% | ||||||||
Avon Products, Inc. | 70,780 | 2,080 | ||||||
Tobacco — 2.88% | ||||||||
Altria Group, Inc. | 1,699,722 | 45,621 | ||||||
Imperial Tobacco Group plc, ADRB | 1,238,300 | 87,795 | ||||||
Philip Morris International, Inc. | 1,935,741 | 134,417 | ||||||
Reynolds American, Inc. | 138,295 | 5,132 | ||||||
272,965 | ||||||||
Total Consumer Staples | 752,468 | |||||||
ENERGY — 11.54% | ||||||||
Energy Equipment & Services — 0.65% | ||||||||
Cobalt International Energy, Inc.A | 1,245,500 | 17,437 | ||||||
Transocean Ltd. | 613,471 | 44,630 | ||||||
62,067 | ||||||||
Oil & Gas — 10.89% | ||||||||
Apache Corp. | 111,641 | 14,890 | ||||||
BP plc, ADRB | 2,489,400 | 114,861 | ||||||
Chevron Corp. | 1,083,557 | 118,584 | ||||||
ConocoPhillips | 3,775,796 | 298,024 | ||||||
EOG Resources, Inc. | 69,786 | 7,880 | ||||||
Exxon Mobil Corp. | 1,071,046 | 94,252 | ||||||
Hess Corp. | 121,919 | 10,480 | ||||||
Marathon Oil Corp. | 124,600 | 6,733 | ||||||
Occidental Petroleum Corp. | 952,658 | 108,879 | ||||||
Royal Dutch Shell plc, ADRB | 1,551,700 | 121,591 | ||||||
Spectra Energy Corp. | 3,465,800 | 100,647 | ||||||
Total S.A., ADRB | 583,400 | 37,472 | ||||||
1,034,293 | ||||||||
Total Energy | 1,096,360 | |||||||
FINANCIALS — 24.65% | ||||||||
Banks — 8.65% | ||||||||
Bank of America Corp. | 20,655,212 | 253,646 | ||||||
Fifth Third Bancorp | 1,790,100 | 23,755 | ||||||
First Horizon National Corp. | 1,261,300 | 13,811 | ||||||
KeyCorp. | 2,137,574 | 18,533 | ||||||
PNC Financial Services Group, Inc. | 2,682,463 | 167,225 | ||||||
SunTrust Banks, Inc. | 1,522,530 | 42,920 | ||||||
The Bank of New York Mellon Corp. | 794,677 | 23,014 | ||||||
Wells Fargo & Co. | 9,147,231 | 266,275 | ||||||
Zions Bancorporation | 515,200 | 12,597 | ||||||
821,776 | ||||||||
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Table of Contents
American Beacon Large Cap Value Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
Diversified Financials — 9.22% | ||||||||
American Express Co. | 1,890,900 | 92,805 | ||||||
BlackRock, Inc. | 16,953 | 3,322 | ||||||
Capital One Financial Corp. | 1,731,600 | 94,770 | ||||||
Citigroup, Inc. | 27,078,768 | 124,292 | ||||||
JPMorgan Chase & Co. | 7,022,754 | 320,448 | ||||||
Mastercard, Inc. | 58,724 | 16,201 | ||||||
Morgan Stanley | 2,410,100 | 63,024 | ||||||
SLM Corp. | 2,741,100 | 45,475 | ||||||
State Street Corp. | 1,017,934 | 47,385 | ||||||
The Goldman Sachs Group Inc. | 411,527 | 62,145 | ||||||
The Western Union Co. | 275,774 | 5,860 | ||||||
875,727 | ||||||||
Insurance — 6.00% | ||||||||
ACE Ltd. | 694,766 | 46,723 | ||||||
AON Corp. | 187,366 | 9,775 | ||||||
Chubb Corp. | 100,990 | 6,584 | ||||||
Genworth Financial, Inc. | 3,181,900 | 38,787 | ||||||
Hartford Financial Services Group, Inc. | 1,887,650 | 54,685 | ||||||
Lincoln National Corp. | 1,224,600 | 38,244 | ||||||
MetLife, Inc. | 2,716,310 | 127,096 | ||||||
Prudential Financial, Inc. | 571,788 | 36,263 | ||||||
The Allstate Corp. | 2,661,800 | 90,075 | ||||||
The Travelers Cos., Inc. | 627,379 | 39,701 | ||||||
XL Group plc | 3,378,900 | 82,513 | ||||||
570,446 | ||||||||
Real Estate — 0.78% | ||||||||
Annaly Capital Management, Inc.C | 2,768,500 | 49,390 | ||||||
Chimera Investment Corp.C | 6,091,800 | 24,672 | ||||||
74,062 | ||||||||
Total Financials | 2,342,011 | |||||||
HEALTH CARE — 10.48% | ||||||||
Biotechnology — 0.46% | ||||||||
Amgen, Inc. | 771,000 | 43,831 | ||||||
Health Care Equipment & Supplies — 2.07% | ||||||||
Baxter International, Inc. | 1,409,400 | 80,196 | ||||||
Becton Dickinson and Co. | 105,635 | 9,078 | ||||||
Covidien plc | 361,000 | 20,104 | ||||||
Medtronic, Inc. | 1,769,159 | 73,862 | ||||||
St Jude Medical, Inc. | 159,486 | 8,523 | ||||||
Thermo Fisher Scientific, Inc. | 74,200 | 4,451 | ||||||
196,214 | ||||||||
Health Care Providers & Services — 0.57% | ||||||||
Quest Diagnostics, Inc. | 86,792 | 4,893 | ||||||
WellPoint, Inc. | 636,400 | 48,869 | ||||||
53,762 | ||||||||
Pharmaceuticals — 7.38% | ||||||||
Abbott Laboratories | 342,129 | 17,804 | ||||||
Bristol-Myers Squibb Co. | 1,589,000 | 44,651 | ||||||
Eli Lilly & Co. | 1,583,500 | 58,605 | ||||||
GlaxoSmithKline plc, ADRB | 89,853 | 3,923 | ||||||
Johnson & Johnson | 2,399,391 | 157,688 | ||||||
Merck & Co, Inc. | 3,774,145 | 135,681 | ||||||
Novartis AG, ADRB | 998,900 | 59,105 | ||||||
Pfizer, Inc. | 10,470,027 | 219,452 | ||||||
Roche Holding AG, ADRB | 113,511 | 4,601 | ||||||
701,510 | ||||||||
Total Health Care | 995,317 | |||||||
INDUSTRIALS — 9.92% | ||||||||
Aerospace & Defense — 3.38% | ||||||||
Huntington Ingalls Industries, Inc.A | 143,504 | 5,740 | ||||||
Lockheed Martin Corp. | 1,539,056 | 121,971 | ||||||
Northrop Grumman Corp. | 861,027 | 54,770 | ||||||
Raytheon Co. | 1,506,500 | 73,141 | ||||||
The Boeing Co. | 526,100 | 41,972 | ||||||
United Technologies Corp. | 249,455 | 22,346 | ||||||
319,940 | ||||||||
Air Freight & Couriers — 0.38% | ||||||||
FedEx Corp. | 379,900 | 36,345 | ||||||
Commercial Services & Supplies — 0.08% | ||||||||
Dun & Bradstreet Corp. | 64,481 | 5,299 | ||||||
RR Donnelley & Sons Co. | 110,793 | 2,090 | ||||||
7,389 | ||||||||
Construction & Engineering — 0.02% | ||||||||
Fluor Corp. | 32,232 | 2,254 | ||||||
Electrical Equipment — 0.51% | ||||||||
TE Connectivity Ltd. | 1,357,500 | 48,666 | ||||||
Industrial Conglomerates — 3.12% | ||||||||
3M Co. | 717,874 | 69,785 | ||||||
General Electric Co. | 5,315,000 | 108,691 | ||||||
Honeywell International, Inc. | 1,507,408 | 92,299 | ||||||
Tyco International Ltd. | 526,900 | 25,681 | ||||||
296,456 | ||||||||
Machinery — 2.38% | ||||||||
Cummins, Inc. | 184,900 | 22,221 | ||||||
Danaher Corp. | 180,307 | 9,960 | ||||||
Eaton Corp. | 119,554 | 6,400 | ||||||
Illinois Tool Works, Inc. | 775,600 | 45,303 | ||||||
ITT Corp. | 1,151,300 | 66,534 | ||||||
PACCAR, Inc. | 1,427,630 | 75,821 | ||||||
226,239 | ||||||||
Road & Rail — 0.05% | ||||||||
Canadian National Railway Co. | 65,158 | 5,045 | ||||||
Total Industrials | 942,334 | |||||||
INFORMATION TECHNOLOGY — 11.78% | ||||||||
Communications Equipment — 0.46% | ||||||||
Cisco Systems, Inc. | 2,475,984 | 43,478 | ||||||
Computers & Peripherals — 4.74% | ||||||||
Apple, Inc. | 156,070 | 54,348 | ||||||
Hewlett-Packard Co. | 5,464,029 | 220,583 | ||||||
International Business Machines Corp. | 1,024,276 | 174,721 | ||||||
449,652 | ||||||||
Electronic Equipment & Instruments — 0.24% | ||||||||
Avnet, Inc. | 636,200 | 23,107 | ||||||
IT Consulting & Services — 0.24% | ||||||||
Accenture plc | 405,328 | 23,156 | ||||||
Office Electronics — 0.29% | ||||||||
Xerox Corp. | 2,773,000 | 27,980 | ||||||
Semiconductor Equipment & Products — 2.79% | ||||||||
Applied Materials, Inc. | 1,727,100 | 27,098 | ||||||
ASML Holding N.V. | 426,650 | 17,817 | ||||||
Intel Corp. | 6,380,497 | 147,964 |
7
Table of Contents
American Beacon Large Cap Value FundSM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
Micron Technology, Inc. | 4,058,500 | 45,820 | ||||||
Texas Instruments, Inc. | 748,600 | 26,598 | ||||||
265,297 | ||||||||
Software — 3.02% | ||||||||
CA, Inc. | 3,040,403 | 74,764 | ||||||
Microsoft Corp. | 6,830,000 | 177,716 | ||||||
Oracle Corp. | 953,334 | 34,368 | ||||||
286,848 | ||||||||
Total Information Technology | 1,119,518 | |||||||
MATERIALS — 3.47% | ||||||||
Chemicals — 1.90% | ||||||||
Air Products & Chemicals, Inc. | 413,388 | 39,487 | ||||||
Celanese Corp. | 435,000 | 21,715 | ||||||
EI du Pont de Nemours & Co. | 888,800 | 50,474 | ||||||
PPG Industries, Inc. | 272,779 | 25,824 | ||||||
The Dow Chemical Co. | 1,057,200 | 43,335 | ||||||
180,835 | ||||||||
Metals & Mining — 0.94% | ||||||||
Cliffs Natural Resources, Inc. | 658,100 | 61,677 | ||||||
Newmont Mining Corp. | 479,400 | 28,098 | ||||||
89,775 | ||||||||
Paper & Forest Products — 0.63% | ||||||||
International Paper Co. | 1,923,600 | 59,401 | ||||||
Total Materials | 330,011 | |||||||
TELECOMMUNICATION SERVICES — 4.47% | ||||||||
Diversified Telecommunication Services — 2.13% | ||||||||
AT&T, Inc. | 4,830,959 | 150,339 | ||||||
Nokia OYJ, ADRB | 2,651,000 | 24,469 | ||||||
Verizon Communications, Inc. | 728,986 | 27,541 | ||||||
202,349 | ||||||||
Wireless Telecommunication Services — 2.34% | ||||||||
Vodafone Group plc, ADRB | 7,622,754 | 221,975 | ||||||
Total Telecommunication Services | 424,324 | |||||||
UTILITIES — 4.19% | ||||||||
CenterPoint Energy, Inc. | 2,967,300 | 55,192 | ||||||
Dominion Resources, Inc. | 1,627,780 | 75,562 | ||||||
Edison International | 1,128,500 | 44,316 | ||||||
Entergy Corp. | 428,400 | 29,868 | ||||||
Exelon Corp. | 1,975,200 | 83,254 | ||||||
PG&E Corp. | 208,754 | 9,619 | ||||||
PPL Corp. | 1,087,415 | 29,828 | ||||||
Public Service Enterprise Group, Inc. | 2,202,146 | 70,843 | ||||||
Total Utilities | 398,482 | |||||||
Total Common Stock (Cost $8,251,659) | 9,142,138 | |||||||
PREFERRED STOCK — 0.47% | ||||||||
CONSUMER DISCRETIONARY — 0.46% | ||||||||
General Motors Co. | 878,825 | 43,774 | ||||||
UTILITIES — 0.01% | ||||||||
PPL Corp. | 18,398 | 1,043 | ||||||
Total Preferred Stock (Cost $45,491) | 44,817 | |||||||
Shares | ||||||||
SHORT-TERM INVESTMENTS — 2.95% | ||||||||
American Beacon U.S. Government Money Market Select Fund D | 50,000,000 | 50,000 | ||||||
JPMorgan U.S. Government Money Market Fund | 229,883,483 | 229,883 | ||||||
Total Short-Term Investments (Cost $279,883) | 279,883 | |||||||
TOTAL INVESTMENTS — 99.64% (Cost $8,577,033) | 9,466,838 | |||||||
OTHER ASSETS, NET OF LIABILITIES — 0.36% | 33,792 | |||||||
TOTAL NET ASSETS — 100.00% | $ | 9,500,630 | ||||||
Percentages are stated as a percent of net assets.
A | Non-income producing security. | |
B | ADR — American Depositary Receipt | |
C | REIT | |
D | The Fund is affiliated by having the same investment advisor. |
8
Table of Contents
American Beacon Large Cap Value Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Unrealized | ||||||||||||||||
Futures Contracts | Number of | Appreciation/ | ||||||||||||||
(dollars in thousands) | Contracts | Expiration Date | Value | (Depreciation) | ||||||||||||
S&P 500 Mini E Index Future | 4,421 | June, 2011 | 300,562 | 15,605 | ||||||||||||
300,562 | 15,605 | |||||||||||||||
9
Table of Contents
American Beacon Large Cap Value Fund
Statement of Assets and Liabilities
April 30, 2011 (in thousands, except share and per share amounts) (Unaudited)
Statement of Assets and Liabilities
April 30, 2011 (in thousands, except share and per share amounts) (Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value A | $ | 9,416,838 | ||
Investments in affiliated securities, at value B | 50,000 | |||
Cash | 14 | |||
Deposit with brokers for futures contracts | 19,606 | |||
Receivable for investments sold | 13,258 | |||
Dividends and interest receivable | 9,669 | |||
Receivable for fund shares sold | 15,310 | |||
Receivable for tax reclaims | 583 | |||
Receivable for variation margin on open futures contracts | 1,044 | |||
Prepaid expenses | 166 | |||
Total assets | 9,526,488 | |||
Liabilities: | ||||
Payable for investments purchased | 14,066 | |||
Payable for fund shares redeemed | 5,426 | |||
Management and investment advisory fees payable (Note 2) | 2,145 | |||
Administrative service and service fees payable (Note 2) | 3,299 | |||
Professional fees payable | 119 | |||
Other liabilities | 803 | |||
Total liabilities | 25,858 | |||
Net assets | $ | 9,500,630 | ||
Analysis of Net Assets: | ||||
Paid-in-capital | 10,000,798 | |||
Undistributed net investment income | 48,705 | |||
Accumulated net realized loss | (1,454,283 | ) | ||
Unrealized appreciation of investments, futures contracts, and foreign currency | 905,410 | |||
Net assets | $ | 9,500,630 | ||
Shares outstanding (no par value): | ||||
Institutional Class | 188,217,198 | |||
Y Class | 901,826 | |||
Investor Class | 236,968,809 | |||
Advisor Class | 7,721,381 | |||
Retirement Class | 29,548 | |||
AMR Class | 29,295,510 | |||
A Class | 156,817 | |||
C Class | 31,724 | |||
Net asset value, offering and redemption price per share: | ||||
Institutional Class | $ | 21.09 | ||
Y Class | $ | 21.03 | ||
Investor Class | $ | 20.02 | ||
Advisor Class | $ | 19.86 | ||
Retirement Class | $ | 19.79 | ||
AMR Class | $ | 20.86 | ||
A Class (net asset value and redemption price) | $ | 20.07 | ||
A Class (offering price) | $ | 21.29 | ||
C Class | $ | 20.06 | ||
A Cost of investments in unaffiliated securities | $ | 8,527,033 | ||
B Cost of investments in affiliated securities | $ | 50,000 |
10
Table of Contents
American Beacon Large Cap Value Fund
Statement of Operations
Six Months Ended April 30, 2011 (in thousands) (Unaudited)
Statement of Operations
Six Months Ended April 30, 2011 (in thousands) (Unaudited)
Investment Income: | ||||
Dividend income from unaffiliated securities (net of foreign taxes)* | $ | 101,200 | ||
Dividend income from affiliated securities | 25 | |||
Interest income | 17 | |||
Total investment income | 101,242 | |||
Expenses: | ||||
Management and investment advisory fees (Note 2) | 10,280 | |||
Administrative service fees (Note 2): | ||||
Institutional Class | 5,496 | |||
Y Class | 13 | |||
Investor Class | 6,711 | |||
Advisor Class | 210 | |||
Retirement Class | 1 | |||
AMR Class | 145 | |||
A Class | 4 | |||
C Class | 1 | |||
Transfer agent fees: | ||||
Institutional Class | 84 | |||
Y Class | 1 | |||
Investor Class | 122 | |||
Advisor Class | 4 | |||
AMR Class | 15 | |||
Custody and fund accounting fees | 508 | |||
Professional fees | 200 | |||
Registration fees and expenses | 99 | |||
Service fees (Note 2): | ||||
Y Class | 4 | |||
Investor Class | 8,234 | |||
Advisor Class | 175 | |||
A Class | 2 | |||
Distribution fees (Note 2): | ||||
Advisor Class | 175 | |||
A Class | 3 | |||
C Class | 2 | |||
Retirement Class | 1 | |||
Prospectus and shareholder reports | 207 | |||
Insurance fees | 99 | |||
Trustee fees | 304 | |||
Other expenses | 277 | |||
Total expenses | 33,377 | |||
Net investment income | 67,865 | |||
Realized and unrealized gain (loss) on investments: | ||||
Net realized gain (loss) from: | ||||
Investments | 538,715 | |||
Commission recapture (Note 1) | 76 | |||
Futures contracts | 64,033 | |||
Change in net unrealized appreciation or depreciation of: | ||||
Investments | 573,740 | |||
Futures contracts | (4,676 | ) | ||
Net gain on investments | 1,171,888 | |||
Net increase in net assets resulting from operations | $ | 1,239,753 | ||
* Foreign taxes | $ | 581 |
11
Table of Contents
American Beacon Large Cap Value Fund
Statement of Changes in Net Assets (in thousands)
Statement of Changes in Net Assets (in thousands)
Six Months Ended | Year Ended | |||||||
April 30, 2011 | October 31, 2010 | |||||||
(unaudited) | ||||||||
Increase (Decrease) in Net Assets: | ||||||||
Operations: | ||||||||
Net investment income | $ | 67,865 | $ | 115,549 | ||||
Net realized gain (loss) on investments, futures contracts, and foreign currency transactions | 602,824 | (62,309 | ) | |||||
Change in net unrealized appreciation of investments, futures contracts, and foreign currency translations | 569,064 | 992,998 | ||||||
Net increase in net assets resulting from operations | 1,239,753 | 1,046,238 | ||||||
Distributions to Shareholders: | ||||||||
Net investment income: | ||||||||
Institutional Class | (47,238 | ) | (40,440 | ) | ||||
Y Class | (27 | ) | (15 | ) | ||||
Investor Class | (48,747 | ) | (61,616 | ) | ||||
Advisor Class | (1,398 | ) | (1,747 | ) | ||||
AMR Class | (8,633 | ) | (10,649 | ) | ||||
A Class | (13 | ) | — | |||||
Net distributions to shareholders | (106,056 | ) | (114,467 | ) | ||||
Capital Share Transactions: | ||||||||
Proceeds from sales of shares | 1,096,111 | 2,598,273 | ||||||
Reinvestment of dividends and distributions | 101,485 | 109,446 | ||||||
Cost of shares redeemed | (1,026,404 | ) | (2,099,289 | ) | ||||
Net increase in net assets from capital share transactions | 171,192 | 608,430 | ||||||
Net increase in net assets | 1,304,889 | 1,540,201 | ||||||
Net Assets: | ||||||||
Beginning of period | 8,195,741 | 6,655,540 | ||||||
End of Period * | $ | 9,500,630 | $ | 8,195,741 | ||||
* Includes undistributed net investment income of | $ | 48,705 | $ | 86,896 | ||||
See accompanying notes
12
Table of Contents
American Beacon Large Cap Value Fund
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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 | |||
A Class | General public and investors investing through an intermediary with applicable sales charges | |||
C Class | General public and investors investing through an intermediary with applicable sales charges |
Administrative service fees, service fees and distribution fees vary amongst the classes as described more fully in footnote 2.
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 fair 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
Table of Contents
American Beacon Large Cap Value Fund
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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. During the period there were no significant transfers between levels. As of April 30, 2011, the Fund’s investments were classified as follows: (in thousands)
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Short Term Investments | $ | 279,883 | $ | — | $ | — | $ | 279,883 | ||||||||
Common Stock | 9,142,138 | — | — | 9,142,138 | ||||||||||||
Preferred Stock | 44,817 | — | — | 44,817 | ||||||||||||
Total Investments in Securities | $ | 9,466,838 | $ | — | $ | — | $ | 9,466,838 | ||||||||
Futures Contracts | 15,605 | — | — | 15,605 |
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 except certain dividends from foreign securities which are recorded as soon as the information is available to the Fund. 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 represents this amount on the Statement of Assets and Liabilities as deposit with broker 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
14
Table of Contents
American Beacon Large Cap Value Fund
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
losses are recognized. Futures contracts are valued at the most recent settlement price established each day by the exchange on which they are traded.
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2011 (in thousands)
Liability | ||||||||
Statement of Assets and Liabilities | Derivatives | Fair Value | ||||||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* | $ | 15,605 |
Effect of derivative instruments not accounted for as hedging instruments during the year ended April 30, 2011 (in thousands)
Statement of Operations | Derivative | Fair Value | ||||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 64,033 | |||||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | ($4,676 | ) |
* | 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.
15
Table of Contents
American Beacon Large Cap Value Fund
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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 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, 2011 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% | $10,280 | $8,064 | $2,216 |
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, 0.40% of the average daily net assets of the A and C 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, Retirement, A and C 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.
Separate Distribution Plan (the “Distribution Plans”) have been adopted pursuant to Rule 12b-1 under the Act for the Advisor, Retirement, A, and C Classes of the Fund. Under the Distribution Plans, as compensation for distribution assistance, the Manager receives an annual fee of 0.25% of the average daily net assets of the Advisor and A Classes, 0.50% of the average daily net assets of the Retirement Class, and 1.00% of the average daily net assets of the C 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. Distribution fees for the Retirement Class for the six months ended April 30, 2011 was less than $500.
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, Retirement, A and C 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, 0.15% of the average daily net assets of the A and C Classes, 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
16
Table of Contents
American Beacon Large Cap Value Fund
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
Fund. Services fees for the Retirement and C Classes for the six months ended April 30, 2011 were less than $500.
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, 2011, the Manager earned fees from the Select Funds totaling $26,000.
Interfund Lending Program
Pursuant to an exemptive order issued 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, 2011, 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, 2011, 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 qualify as a regulated investment company by complying with all applicable provision of the Code, and to make distribution of taxable income sufficient to relieve it from substantially all federal income and excise taxes. For federal income tax purposes each Fund is treated as a single entity for the purpose of determining such qualifications.
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, 2010 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, 2011 and the fiscal year ended October 31, 2010 were as follows (in thousands):
17
Table of Contents
American Beacon Large Cap Value Fund
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
Six Months Ended | Year Ended | |||||||
April 30, | October 31, | |||||||
2011 | 2010 | |||||||
Distributions paid from: | (unaudited) | |||||||
Ordinary income* | ||||||||
Institutional Class | $ | 47,238 | $ | 40,440 | ||||
Y Class | 27 | 15 | ||||||
Investor Class | 48,747 | 61,616 | ||||||
Advisor Class | 1,398 | 1,747 | ||||||
AMR Class | 8633 | 10,649 | ||||||
A Class | 13 | — | ||||||
Total distributions paid | $ | 106,056 | $ | 114,467 | ||||
* | For tax purposes, short-term capital gains are considered ordinary income distributions. |
As of April 30, 2011, the components of distributable earnings on a tax basis were as follows (in thousands):
Cost basis of investments for federal income tax purposes | $ | 8,803,462 | ||
Unrealized appreciation | 1,249,922 | |||
Unrealized depreciation | (586,546 | ) | ||
Net unrealized appreciation/(depreciation) | 663,376 | |||
Undistributed ordinary income | 48,706 | |||
Undistributed long-term gain/(loss) | (1,227,890 | ) | ||
Other temporary differences | 15,640 | |||
Distributable earnings | $ | (500,168 | ) | |
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 Section 732 basis adjustments that have been reclassified as of April 30, 2011 (in thousands):
Paid-in-capital | $ | 4 | ||
Undistributed net investment income | — | |||
Accumulated net realized gain (loss) | (4 | ) | ||
Unrealized appreciation (depreciation) of investments, futures contracts and foreign currency | — |
At April 30, 2011, the capital loss carry forward position of the Fund for federal income tax purposes was $485,419, $684,423, and $42,443 expiring in 2016, 2017, and 2018, respectively (in thousands). The Fund utilized $559,273 of net capital loss carryovers for the six months ended April 30, 2011.
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, 2011 were (in thousands) $6,060,332 and $5,751,114, respectively.
18
Table of Contents
American Beacon Large Cap Value Fund
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
A summary of the Fund’s direct transactions in the Select Funds for the six months ended April 30, 2011 is set forth below (in thousands):
October 31, 2010 | April 30, 2011 | |||||||||||||||
Affiliate | Shares/Market Value | Purchases | Sales | Shares/Market Value | ||||||||||||
USG Select Fund | $ | 60,000 | $ | — | $ | 10,000 | $ | 50,000 |
5. Capital Share Transactions
The tables below summarize the activity in capital shares for each Class of the Fund (dollars and shares in thousands):
Six months Ended April 30, 2011
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 22,378 | $ | 446,225 | 828 | $ | 16,527 | 31,861 | $ | 599,498 | 966 | $ | 18,240 | ||||||||||||||||||||
Reinvestment of dividends | 2,273 | 44,274 | 1 | 27 | 2,547 | 47,168 | 75 | 1,372 | ||||||||||||||||||||||||
Shares redeemed | (17,789 | ) | (353,354 | ) | (42 | ) | (824 | ) | (32,548 | ) | (617,579 | ) | (652 | ) | (12,324 | ) | ||||||||||||||||
Net increase (decrease) in shares outstanding | 6,862 | $ | 137,145 | 787 | $ | 15,730 | 1,860 | $ | 29,087 | 389 | $ | 7,288 | ||||||||||||||||||||
Retirement Class | AMR Class | A Class | C Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 31 | $ | 579 | 628 | $ | 12,396 | 111 | $ | 2,084 | 30 | $ | 562 | ||||||||||||||||||||
Reinvestment of dividends | — | — | 448 | 8,633 | 1 | 11 | — | — | ||||||||||||||||||||||||
Shares redeemed | (2 | ) | (31 | ) | (2,164 | ) | (42,278 | ) | (1 | ) | (13 | ) | — | (1 | ) | |||||||||||||||||
Net increase (decrease) in shares outstanding | 29 | $ | 548 | (1,088 | ) | $ | (21,249 | ) | 111 | $ | 2,082 | 30 | $ | 561 | ||||||||||||||||||
Year Ended October 31, 2010
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 67,332 | $ | 1,191,741 | 199 | $ | 3,527 | 80,103 | $ | 1,343,174 | 1,315 | $ | 21,942 | ||||||||||||||||||||
Reinvestment of dividends | 2,134 | 36,957 | 1 | 15 | 3,645 | 60,109 | 105 | 1,716 | ||||||||||||||||||||||||
Shares redeemed | (24,252 | ) | (425,661 | ) | (85 | ) | (1,472 | ) | (93,570 | ) | (1,565,806 | ) | (1,557 | ) | (26,092 | ) | ||||||||||||||||
Net increase (decrease) in shares outstanding | 45,214 | $ | 803,037 | 115 | $ | 2,070 | (9,822 | ) | $ | (162,523 | ) | (137 | ) | $ | (2,434 | ) | ||||||||||||||||
Retirement Class | AMR Class | A Class | C Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | — | $ | 1 | 2,145 | $ | 37,065 | 46 | $ | 786 | 2 | $ | 37 | ||||||||||||||||||||
Reinvestment of dividends | — | — | 623 | 10,649 | — | — | — | — | ||||||||||||||||||||||||
Shares redeemed | — | — | (4,647 | ) | (80,258 | ) | — | — | — | — | ||||||||||||||||||||||
Net increase (decrease) in shares outstanding | — | $ | 1 | (1,879 | ) | $ | (32,544 | ) | 46 | $ | 786 | 2 | $ | 37 | ||||||||||||||||||
19
Table of Contents
American Beacon Large Cap Value Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
April 30, | Year Ended October 31, | |||||||||||||||||||||||
2011F | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 18.56 | $ | 16.32 | $ | 15.01 | �� | $ | 26.03 | $ | 23.77 | $ | 21.00 | |||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeA | 0.17 | 0.32 | 0.35 | 0.51 | 0.40 | 0.31 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 2.62 | 2.22 | 1.40 | (10.41 | ) | 2.78 | 3.48 | |||||||||||||||||
Total income (loss) from investment operations | 2.79 | 2.54 | 1.75 | (9.90 | ) | 3.18 | 3.79 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Dividends from net investment income | (0.26 | ) | (0.30 | ) | (0.44 | ) | (0.41 | ) | (0.31 | ) | (0.26 | ) | ||||||||||||
Distributions from net realized gains on securities | — | — | — | (0.71 | ) | (0.61 | ) | (0.76 | ) | |||||||||||||||
Total distributions | (0.26 | ) | (0.30 | ) | (0.44 | ) | (1.12 | ) | (0.92 | ) | (1.02 | ) | ||||||||||||
Net asset value, end of period | $ | 21.09 | $ | 18.56 | $ | 16.32 | $ | 15.01 | $ | 26.03 | $ | 23.77 | ||||||||||||
Total return B | 15.16 | %C | 15.68 | % | 12.41 | % | (39.59 | )% | 13.76 | % | 18.69 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 3,969,122 | $ | 3,366,011 | $ | 2,221,162 | $ | 2,038,539 | $ | 2,493,451 | $ | 958,830 | ||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||
Expenses, net of waivers | 0.58 | % | 0.59 | % | 0.61 | % | 0.58 | % | 0.59 | % | 0.60 | % | ||||||||||||
Expenses, before waivers | 0.58 | % | 0.59 | % | 0.61 | % | 0.58 | % | 0.59 | % | 0.60 | % | ||||||||||||
Net investment income, net of waivers | 1.71 | % | 1.73 | % | 2.36 | % | 2.19 | % | 1.82 | % | 1.86 | % | ||||||||||||
Net investment income (loss), before waivers | 1.71 | % | 1.73 | % | 2.36 | % | 2.19 | % | 1.82 | % | 1.86 | % | ||||||||||||
Portfolio turnover rate | 67 | %C | 28 | % | 27 | % | 28 | % | 20 | % | 26 | % |
A | 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. | |
B | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
C | Not annualized. | |
D | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. | |
E | Annualized. | |
F | On December 1, 2010, MFS Institutional Advisors, Inc. assumed management of the Large Cap Value Fund’s assets previously managed by Metropolitan West Capital Management, LLC. |
20
Table of Contents
Y Class | Investor Class | |||||||||||||||||||||||||||||||||||
Six | ||||||||||||||||||||||||||||||||||||
Months | Year | August | ||||||||||||||||||||||||||||||||||
Ended | ended | 03 to | Six Months | |||||||||||||||||||||||||||||||||
April | October | October | Ended April | Year Ended October 31, | ||||||||||||||||||||||||||||||||
30, 2011F | 31, 2010 | 31, 2009 | 30, 2011F | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||
$ | 18.49 | $ | 16.32 | $ | 15.59 | $ | 17.61 | $ | 15.51 | $ | 14.29 | $ | 24.83 | $ | 22.74 | $ | 20.16 | |||||||||||||||||||
0.26 | 0.29 | 0.06 | 0.13 | 0.23 | 0.28 | 0.41 | 0.35 | 0.28 | ||||||||||||||||||||||||||||
2.52 | 2.22 | 0.67 | 2.49 | 2.12 | 1.34 | (9.88 | ) | 2.63 | 3.31 | |||||||||||||||||||||||||||
2.78 | 2.51 | 0.73 | 2.62 | 2.35 | 1.62 | (9.47 | ) | 2.98 | 3.59 | |||||||||||||||||||||||||||
(0.24 | ) | (0.34 | ) | — | (0.21 | ) | (0.25 | ) | (0.40 | ) | (0.36 | ) | (0.28 | ) | (0.25 | ) | ||||||||||||||||||||
— | — | — | — | — | — | (0.71 | ) | (0.61 | ) | (0.76 | ) | |||||||||||||||||||||||||
(0.24 | ) | (0.34 | ) | — | (0.21 | ) | (0.25 | ) | (0.40 | ) | (1.07 | ) | (0.89 | ) | (1.01 | ) | ||||||||||||||||||||
$ | 21.03 | $ | 18.49 | $ | 16.32 | $ | 20.02 | $ | 17.61 | $ | 15.51 | $ | 14.29 | $ | 24.83 | $ | 22.74 | |||||||||||||||||||
15.13 | %C | 15.50 | % | 4.68 | %C | 14.95 | %C | 15.27 | % | 11.99 | % | (39.72 | )% | 13.46 | % | 18.44 | % | |||||||||||||||||||
$ | 18,962 | $ | 2,123 | $ | 1 | $ | 4,743,713 | $ | 4,140,584 | $ | 3,798,632 | $ | 3,594,565 | $ | 5,198,835 | $ | 2,586,410 | |||||||||||||||||||
0.69 | % | 0.70 | % | 0.68 | %E | 0.94 | % | 0.96 | % | 0.93 | % | 0.83 | % | 0.83 | % | 0.85 | % | |||||||||||||||||||
0.69 | % | 0.70 | % | 0.68 | %E | 0.94 | % | 0.96 | % | 0.93 | % | 0.83 | % | 0.83 | % | 0.85 | % | |||||||||||||||||||
1.38 | % | 1.51 | % | 1.58 | %E | 1.34 | % | 1.36 | % | 2.05 | % | 1.94 | % | 1.59 | % | 1.61 | % | |||||||||||||||||||
1.38 | % | 1.51 | % | 1.58 | %E | 1.34 | % | 1.36 | % | 2.05 | % | 1.94 | % | 1.59 | % | 1.61 | % | |||||||||||||||||||
67 | %C | 28 | % | 27 | %D | 67 | %C | 28 | % | 27 | % | 28 | % | 20 | % | 26 | % |
21
Table of Contents
American Beacon Large Cap Value Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
Advisor Class | Retirement Class | |||||||||||||||||||||||||||||||
Six | Six | |||||||||||||||||||||||||||||||
Months | Months | Year | ||||||||||||||||||||||||||||||
Ended | Ended | ended | ||||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | April 30, | October | |||||||||||||||||||||||||||||
2011G | 2010 | 2009 | 2008 | 2007 | 2006 | 2011G | 31, 2010 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.47 | $ | 15.39 | $ | 14.19 | $ | 24.70 | $ | 22.64 | $ | 20.13 | $ | 17.32 | $ | 15.36 | ||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss)A | 0.12 | 0.21 | 0.26 | 0.32 | 0.28 | 0.26 | 0.15 | 0.18 | ||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 2.46 | 2.10 | 1.32 | (9.79 | ) | 2.62 | 3.27 | 2.40 | 2.07 | |||||||||||||||||||||||
Total income (loss) from investment operations | 2.58 | 2.31 | 1.58 | (9.47 | ) | 2.90 | 3.53 | 2.55 | 2.25 | |||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.19 | ) | (0.23 | ) | (0.38 | ) | (0.33 | ) | (0.23 | ) | (0.26 | ) | (0.08 | ) | (0.29 | ) | ||||||||||||||||
Distributions from net realized gains on securities | — | — | — | (0.71 | ) | (0.61 | ) | (0.76 | ) | — | — | |||||||||||||||||||||
Total distributions | (0.19 | ) | (0.23 | ) | (0.38 | ) | (1.04 | ) | (0.84 | ) | (1.02 | ) | (0.08 | ) | (0.29 | ) | ||||||||||||||||
Net asset value, end of period | $ | 19.86 | $ | 17.47 | $ | 15.39 | $ | 14.19 | $ | 24.70 | $ | 22.64 | $ | 19.79 | $ | 17.32 | ||||||||||||||||
Total return B | 14.85 | %C | 15.14 | % | 11.81 | % | (39.87 | )% | 13.16 | % | 18.18 | % | 14.74 | %C | 14.78 | % | ||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 153,338 | $ | 128,080 | $ | 114,945 | $ | 99,416 | $ | 99,854 | $ | 39,077 | $ | 585 | $ | 2 | ||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||
Expenses, net of waivers | 1.07 | % | 1.10 | % | 1.10 | % | 1.08 | % | 1.08 | % | 1.09 | % | 1.34 | % | 1.37 | % | ||||||||||||||||
Expenses, before waivers | 1.07 | % | 1.10 | % | 1.12 | % | 1.08 | % | 1.08 | % | 1.09 | % | 1.34 | % | 1.37 | % | ||||||||||||||||
Net investment income, net of waivers | 1.21 | % | 1.23 | % | 1.86 | % | 1.69 | % | 1.32 | % | 1.39 | % | 0.80 | % | 0.95 | % | ||||||||||||||||
Net investment income (loss), before waivers | 1.21 | % | 1.23 | % | 1.84 | % | 1.69 | % | 1.32 | % | 1.39 | % | 0.80 | % | 0.95 | % | ||||||||||||||||
Portfolio turnover rate | 67 | %C | 28 | % | 27 | % | 28 | % | 20 | % | 26 | % | 67 | %C | 28 | % |
A | 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. | |
B | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
C | Not annualized. | |
D | Annualized. | |
E | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. | |
F | Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010. | |
G | On December 1, 2010, MFS Institutional Advisors, Inc. assumed management of the Large Cap Value Fund’s assets previously managed by Metropolitan West Capital Management, LLC. |
22
Table of Contents
A Class | C Class | |||||||||||||||||||
Six | Six | |||||||||||||||||||
May 01 | Months | May 17 | Months | September | ||||||||||||||||
to | Ended | to | Ended | 01 to | ||||||||||||||||
October | April 30, | October | April 30, | October | ||||||||||||||||
31, 2009 | 2011G | 31, 2010 | 2011G | 31, 2010 | ||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||
$ | 12.66 | $ | 17.61 | $ | 16.93 | $ | 17.58 | $ | 16.17 | |||||||||||
0.08 | 0.12 | 0.03 | 0.05 | (0.01 | ) | |||||||||||||||
2.62 | 2.49 | 0.65 | 2.48 | 1.42 | ||||||||||||||||
2.70 | 2.61 | 0.68 | 2.53 | 1.41 | ||||||||||||||||
— | (0.15 | ) | — | (0.05 | ) | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||||
— | (0.15 | ) | — | (0.05 | ) | — | ||||||||||||||
$ | 15.36 | $ | 20.07 | $ | 17.61 | $ | 20.06 | $ | 17.58 | |||||||||||
21.33 | % | 14.91 | %C | 4.02 | %C | 14.39 | %C | 8.72 | %C | |||||||||||
$ | 1 | $ | 3,147 | $ | 814 | $ | 636 | $ | 38 | |||||||||||
1.37 | %D | 1.07 | % | 1.06 | %D | 1.81 | % | 1.87 | %D | |||||||||||
1.37 | %D | 1.07 | % | 1.06 | %D | 1.81 | % | 2.14 | %D | |||||||||||
1.15 | %D | 1.13 | % | 1.09 | %D | 0.28 | % | (0.50 | )%D | |||||||||||
1.15 | %D | 1.13 | % | 1.09 | %D | 0.28 | % | (0.76 | )%D | |||||||||||
27 | %E | 67 | %C | 28 | %F | 67 | %C | 28 | %F |
23
Table of Contents
American Beacon Large Cap Value Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
AMR Class | ||||||||||||||||||||||||
Six | ||||||||||||||||||||||||
Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
April 30, | Year Ended October 31, | |||||||||||||||||||||||
2011D | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 18.37 | $ | 16.14 | $ | 14.88 | $ | 25.80 | $ | 23.55 | $ | 20.78 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeA | 0.19 | 0.34 | 0.37 | 0.51 | 0.45 | 0.35 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 2.59 | 2.22 | 1.38 | (10.26 | ) | 2.76 | 3.47 | |||||||||||||||||
Total income (loss) from investment operations | 2.78 | 2.56 | 1.75 | (9.75 | ) | 3.21 | 3.82 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Dividends from net investment income | (0.29 | ) | (0.33 | ) | (0.49 | ) | (0.46 | ) | (0.35 | ) | (0.29 | ) | ||||||||||||
Distributions from net realized gains on securities | — | — | — | (0.71 | ) | (0.61 | ) | (0.76 | ) | |||||||||||||||
Total distributions | (0.29 | ) | (0.33 | ) | (0.49 | ) | (1.17 | ) | (0.96 | ) | (1.05 | ) | ||||||||||||
Net asset value, end of period | $ | 20.86 | $ | 18.37 | $ | 16.14 | $ | 14.88 | $ | 25.80 | $ | 23.55 | ||||||||||||
Total return B | 15.27 | %C | 16.04 | % | 12.59 | % | (39.43 | )% | 14.03 | % | 19.08 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 611,127 | $ | 558,089 | $ | 520,799 | $ | 497,127 | $ | 972,260 | $ | 1,024,899 | ||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||
Expenses, net of waivers | 0.33 | % | 0.34 | % | 0.36 | % | 0.32 | % | 0.32 | % | 0.34 | % | ||||||||||||
Expenses, before waivers | 0.33 | % | 0.34 | % | 0.36 | % | 0.32 | % | 0.32 | % | 0.34 | % | ||||||||||||
Net investment income, net of waivers | 1.97 | % | 1.98 | % | 2.62 | % | 2.44 | % | 2.13 | % | 2.18 | % | ||||||||||||
Net investment income (loss), before waivers | 1.97 | % | 1.98 | % | 2.62 | % | 2.44 | % | 2.13 | % | 2.18 | % | ||||||||||||
Portfolio turnover rate | 67 | %C | 28 | % | 27 | % | 28 | % | 20 | % | 26 | % |
A | 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. | |
B | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
C | Not annualized. | |
D | On December 1, 2010, MFS Institutional Advisors, Inc. assumed management of the Large Cap Value Fund’s assets previously managed by Metropolitan West Capital Management, LLC. |
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Disclosure Regarding the Board of Trustees’ Approval of Investment Advisory Agreement
(Unaudited)
(Unaudited)
At the November 22, 2010 meeting of the Board, the Manager proposed that the Board approve the appointment of MFS Institutional Advisors, Inc. (“MFS”) as an investment advisor to the American Beacon Large Cap Value Fund. At that meeting, the Manager also recommended that the Board terminate the investment advisory agreement with Metropolitan West Capital Management (“MetWest”), dated November 18, 2008. The Manager’s recommendation to terminate MetWest was predicated on the departure of MetWest’s lead large cap value portfolio strategist and Chief Investment Officer.
The Board reviewed the information provided by MFS in connection with their consideration of MFS and the MFS Agreement. The Board considered, among other materials, responses by MFS to inquiries requesting:
• | a description of the advisory and related services proposed to be provided to the Fund; | ||
• | a description of how MFS anticipates handling the transition of the portion of the Fund’s portfolio that was previously managed by MetWest to MFS and the extent to which current holdings will be maintained or sold; | ||
• | identification of the professional personnel to perform services for the Fund and their education, experience and responsibilities; | ||
• | a comparison of the performance of accounts similar to the Fund managed by MFS with the performance of applicable indices; | ||
• | an analysis of the proposed advisory fee, a comparison to the fees charged to other comparable clients and an explanation of any differences between the fee schedules; | ||
• | whether MFS charges a lower advisory fee to other clients for which it provides services comparable to the services proposed for the Fund and, if so, an explanation of the rationale for charging the other clients a lower fee; | ||
• | a description of the portfolio managers’ compensation, including any incentive arrangements, and if compensation is tied to performance, a description of the oversight mechanisms to prevent a manager with lagging performance from taking undue risks; | ||
• | a description of MFS’ compliance program and matters, as well as its trading activities; and | ||
• | any other information MFS believed would be material to the Board’s consideration of the MFS Agreement. |
The Board considered multiple factors when evaluating MFS and in approving the MFS Agreement, including that the Manager had screened a number of large cap value advisors to identify MFS. The Board considered MFS’ experience in managing large cap value assets, its reputation and financial condition, the past performance of similar accounts managed by MFS, its overall capabilities to perform the services under the MFS Agreement and its willingness to perform those services for the Fund. A discussion of certain of the key factors relating to the Board’s selection of MFS and approval of the MFS Agreement follows.
Nature, extent and quality of the services to be provided by MFS. The Board considered MFS’ investment philosophy and investment process, as well as the background and experience of the personnel who will be assigned responsibility for managing the portion of the Fund’s assets allocated to MFS. The Board also considered information regarding MFS’ principal business activities, its reputation, financial condition, infrastructure, its overall capabilities to perform the services under the MFS Agreement and the adequacy of its compliance program. In addition, the Board took into consideration MFS’ representation that it has experience with several methods of transitioning portfolios from one sub-advisor to another, that it will work with management to determine the most appropriate transition process for the Fund and that it will transition the Fund in a manner consistent with the existing portfolios managed by the remaining sub-advisors to the Fund. The Board also took into consideration the Manager’s recommendation on behalf of MFS. MFS also represented that current staffing levels would be sufficient to service the Fund. Based on this information, the Board concluded that the nature, extent and quality of the advisory services to be provided by MFS were appropriate for the Fund in light of its investment objective, and, thus, supported a decision to approve the MFS Agreement.
Performance of MFS. The Board evaluated MFS’ historical investment performance record in managing assets utilizing a large cap value mandate. In particular, the Board evaluated the one-, three- and five-year performance of several mutual funds and private accounts that have similar investment objectives and policies to the Fund (the “Large Cap Value Composite”), as compared to the Russell 1000 Value Index (the “Index”). The Board noted that the accounts in the Large Cap Value Composite underperformed the Index for the one-year period and outperformed the Index for the three- and five-year periods ended September 30, 2010. The Board also considered MFS’ rationale for the underperformance of the accounts in the Large Cap Value Composite for the one-year period ended September 30, 2010, and concluded that the historical investment performance record of MFS supported the approval of the MFS Agreement.
Comparisons of the amounts to be paid under the MFS Agreement with those under contracts between MFS and its other clients. In evaluating the MFS Agreement, the Board reviewed MFS’ proposed advisory fee schedule and breakpoints for the Fund. The Board considered comparisons of the sub-advisory fees to be charged by MFS under the MFS Agreement versus the fees charged by MFS to other clients with a similar investment mandate. The Board noted that MFS may negotiate different advisory fees for certain accounts based on the client’s particular needs and the type of account, inception dates, the initial or potential size of the accounts and other factors, such as the entirety of the client’s relationship with MFS and/or its affiliates. The Board also noted that the proposed sub-advisory fee rate to be paid by the Fund compared favorably to the fee rates paid by MFS’ other mutual fund and separate accounts clients. This information assisted the Board in concluding that MFS’ advisory fees under the MFS Agreement appeared to be within a reasonable range for the services to be provided to the Fund, in light of all the factors considered.
Extent to which economies of scale would be realized as the Fund grows and whether fee levels reflect these economies of scale for the benefit of Fund investors. The Board considered that the fees to be paid by the Fund to MFS are passed through the Manager and that the Manager would not benefit economically from the proposed fee agreement. The Board also considered that the Manager negotiated “breakpoints” in MFS’ fee rate based on the levels of assets in the Fund allocated to and managed by MFS and that, in calculating assets under management for this purpose, MFS will include all other large cap value assets of the Manager’s clients that are also managed by MFS. Thus, the Board concluded that the Fund is receiving economies of scale due to the breakpoints incorporated into the fee schedule.
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Disclosure Regarding the Board of Trustees’ Approval of Investment Advisory Agreement
(Unaudited)
(Unaudited)
Costs of the services to be provided and profits to be realized by MFS and its affiliates from the relationship with the Fund. The Board did not consider the costs of the services to be provided and profits to be realized by MFS from its relationship with the Fund, noting instead the arm’s-length nature of the relationship between the Manager and MFS with respect to the negotiation of the advisory fee rate on behalf of the Fund.
Benefits to be derived by MFS from the relationship with the Fund. The Board considered the “fall-out” or ancillary benefits that may accrue to MFS as a result of the advisory relationship with the Fund, including research and brokerage products it may receive from brokers while executing brokerage transactions on behalf of the Fund. In this regard, the Board noted MFS’ representation that, if so instructed, it can restrict the Fund from participating in its client commission arrangement, meaning that Fund commissions will not be used to pay for third party research. MFS did not identify any other “fall-out” or ancillary benefits that may accrue to MFS. After consideration of this information, the Board concluded that the potential benefits accruing to MFS by virtue of its relationship with the Fund were not a material factor in approving the MFS Agreement.
Board’s Conclusion. The Board did not identify any single factor as being of paramount importance, and different Trustees may have given different weight to different factors. Legal counsel to the independent Trustees provided the Board with a memorandum regarding its responsibilities pertaining to the approval process. The memorandum explained the regulatory requirements surrounding the Trustees’ process for evaluating investment advisors and the terms of the contracts. Based on the various considerations described above, the Board, including a majority of Trustees who are not “interested persons” of the Funds, the Manager or MFS, as that term is defined in the Investment Company Act of 1940 (“1940 Act”), concluded that the proposed investment advisory fee rate is reasonable and that the approval of the MFS Agreement is in the best interests of the Fund and its shareholders and, as a result, approved the MFS Agreement.
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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:
7 | 8 | |
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 twenty 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 or Summary Prospectus.
American Beacon Funds and the American Beacon Large Cap Value Fund are service marks of American Beacon Advisors, Inc.
SAR 4/11
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G U I D A N C E l V I S I O N l E X P E R I E N C E April 30, 2011 S M A L L C A P V A L U E F U N D Semi-Annual ReportSMALL CAP VALUE FUND |
April 30, 2011 |
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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
1 | ||||
2 | ||||
6 | ||||
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, 2011 |
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Fellow Shareholders,
Over the past six months, the equity markets have generally rallied on, despite concerns for the pace of the global economic recovery, reoccurrences of sovereign debt worries, geopolitical unrest, inflation fears and the potential impact of Japan’s recent earthquake. Though challenging, these factors were offset by increasing reports of strength in corporate earnings and the persistence of the U.S. recovery.
The performance of our equity funds reflects this strength as well. It also reflects the American Beacon investment philosophy: that portfolios managed with a longer-term perspective tend to be better positioned for riding out the inevitable waves of economic and geopolitical upheaval.
For the six-month period ended April 30, 2011:
>>American Beacon Small Cap Value Fund (Institutional Class) generated 23.36%
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.
While day-to-day volatility continues to influence the world’s equity and credit markets, American Beacon remains focused on seeking opportunities and meeting market challenges to deliver the type of consistency in performance and service our shareholders value.
Our process is summarized as: Oversight 360. It’s an ongoing commitment to cast a watchful and analytical eye over all the factors that influence our fellow shareholders’ investments.
Thank you for your continued investment in the American Beacon Funds. To obtain further details about the growing number of investment opportunities now available within the American Beacon Funds family or to access your account information, please visit our website at www.americanbeaconfunds.com.
Best Regards, | ||||
![]() | ||||
Gene L. Needles, Jr. | ||||
President American Beacon Funds |
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Domestic Equity Market Overview
April 30, 2011 (Unaudited)
April 30, 2011 (Unaudited)
The stock market rallied over the six months ending April 30, 2011, with most indices posting their highest price levels in over two years. This performance was remarkable given the numerous challenges that arose during the period—multiple conflicts in the Middle East and Northern Africa, rising food and energy prices globally, concerns about rising debt risks both domestically and overseas, and the economic after-effects of Japan’s earthquake and tsunami. While some of these events took a tremendous toll in terms of human life and suffering, investors ultimately did not see them as leading to the derailment of the U.S. economic recovery.
Although overall U.S. economic growth was only moderate during the period, improved profitability and stronger corporate balance sheets continued to provide positive momentum for the U.S. equity market. In addition, healthy business-to-business spending, especially in technology and manufacturing, added to positive returns.
Exports had also been a bright spot for the overall economy. Growth in some overseas economies had been much stronger than in the U.S, which benefitted those companies with higher levels of overseas sales. Energy sector stocks in particular were big winners, thanks to rising oil prices. However, investor concerns for rapidly rising energy and commodity prices globally dampened overall market enthusiasm in the early part of 2011. By March, the stock market had climbed “the wall of worry,” boosted by corporate earnings and valuation levels. Ultimately, the S&P 500 Index rose 16.4% and the Russell 1000 Value Index gained 17.3% during the period.
Corporate America’s strengthening financial position appeared to be the result of aggressive retrenchment during the economic crisis of 2008. During this period, S&P 500 companies amassed nearly $1 trillion of cash on their balance sheets. These same companies also announced over $260 billion in acquisitions and approved over $150 billion in share repurchases. Many companies have also expressed their intention to increase dividends and/or capital expenditures in the coming year—and some had actually already done so. This highlights a considerable mindset shift from a year ago, when management teams seemed satisfied stockpiling cash despite the paltry yield it was earning—a situation Japan had contended with for decades. Determining how companies will spend their cash is of great interest—and is critical to the market—in the near term, since the effectiveness of a company’s cash deployment will greatly influence its future stock performance.
Also helping to propel the market over the past six months were: the extension of Bush-era tax rates and other measures for an additional two years by Congress; and the positive effects of the Federal Reserve’s second phase of quantitative easing (QE2). This occurred in spite of persistently high unemployment, sagging home sales, and continued fears over European Union sovereign debt risk.
A self-sustaining recovery was leading the economic expansion, but one key critical variable for the economy and stock market remains domestic employment. Private sector employment had seen recent gains, but initial unemployment claims had been moving higher in recent reports. Yet, higher stock prices and the resulting wealth effect were fueling consumer spending. Businesses were returning capital to investors, bank lending had increased and consumer credit card delinquencies are down—all signs that U.S. economic activity is on stronger footing and could be poised for continued growth in 2011.
Looking forward, the Federal Reserve’s QE2 program for direct purchases of Treasury bonds is set to finish at the end of June, and it remains to be seen whether this will have negative effects on interest rates. In addition, the ongoing debate in Washington, D.C. over the Federal budget and deficit reduction is likely to continue to attract investor interest and attention. Any significant progress on deficit reduction could be perceived as a major improvement in the economic fundamentals by the market.
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Performance Overview
American Beacon Small Cap Value FundSM
April 30, 2011 (Unaudited)
American Beacon Small Cap Value FundSM
April 30, 2011 (Unaudited)
The Institutional Class of the Small Cap Value Fund returned 23.36% for the six months ended April 30, 2011, outperforming the Russell 2000® Value Index (“Index”) return of 20.31% and the Lipper Small-Cap Value Funds Index return of 21.93% for the same period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/11 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,8) | 23.36 | % | 19.67 | % | 4.45 | % | 11.32 | % | ||||||||
Y Class (1,2,8) | 23.30 | % | 19.53 | % | 4.37 | % | 11.27 | % | ||||||||
Investor Class(1,8) | 23.08 | % | 19.17 | % | 4.14 | % | 10.97 | % | ||||||||
Advisor Class(1,3,8) | 23.07 | % | 19.08 | % | 3.93 | % | 10.77 | % | ||||||||
Retirement Class (1,4,8). | 22.88 | % | 18.75 | % | 3.83 | % | 10.71 | % | ||||||||
A Class with sales charges (1,5,8) | 15.96 | % | 12.19 | % | 2.89 | % | 10.31 | % | ||||||||
A Class without sales charges (1,5,8) | 23.03 | % | 19.06 | % | 4.12 | % | 10.96 | % | ||||||||
C Class with sales charge (1,6,8) | 21.57 | % | 17.41 | % | 4.00 | % | 10.90 | % | ||||||||
C Class without sales charge (1,6,8) | 22.57 | % | 18.41 | % | 4.00 | % | 10.90 | % | ||||||||
AMR Class(1,8) | 23.45 | % | 19.94 | % | 4.71 | % | 11.60 | % | ||||||||
Lipper Small-Cap Value Funds Index(7) | 21.93 | % | 18.24 | % | 4.04 | % | 9.75 | % | ||||||||
Russell 2000 Value Index (7) | 20.31 | % | 14.57 | % | 2.50 | % | 8.69 | % |
* | 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 five-year and ten-year periods represents the total returns achieved by the Institutional Class from 4/30/01 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 4/30/01. | ||
3. | Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/01 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 4/30/01. 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 4/30/01 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 4/30/01. | ||
5. | Fund performance for the one-year, five-year, and ten-year periods represents the total returns achieved by the Investor Class from 4/30/01 up to 5/17/10, the inception date of the A Class, and the returns of the A Class since its inception. Expenses of the A 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 A Class been inexistence since 4/30/01. The maximum sales charge for A Class is 5.75%. | ||
6. | Fund performance for the one-year, five-year, and ten-year periods represents the total returns achieved by the Investor Class from 4/30/01 up to 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the C 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 C Class been inexistence since 4/30/01. The maximum contingent deferred sales charge for C Class is 1.00% for shares redeemed within one year of the date of purchase. | ||
7. | 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. | ||
8. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, Retirement, A, C, and AMR Class shares was 0.82%, 0.92%, 1.19%, 1.33%, 1.55%, 1.29%, 2.11%, and 0.58%, 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 due to both stock selection and sector allocation adding value relative to the Index.
Holdings in the Information Technology, Industrials and Financials sectors added the most value to the Fund’s relative performance. In the Information Technology sector, Vishay Intertechnology (up 74.4%), and Interdigital (up 42.4%) were the largest contributors to excess performance. For the period the Fund owned the securities, Terex (up 59.6%), Weight Watchers (up 89.0%) and Armstrong World Industries
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Performance Overview
American Beacon Small Cap Value FundSM
April 30, 2011 (Unaudited)
American Beacon Small Cap Value FundSM
April 30, 2011 (Unaudited)
(up 54.9%) had the largest impact to the Fund’s excess performance in the Industrials sector. In the Financials sector, MI Developments (up 111.3%) and Symetra Financial (up 26.3%) contributed most to the Fund’s returns. Poor stock selection in the Materials sector also hurt performance. Haynes International (up 26.1%) and Coeur D’Alene Mines (up 49.6%) for the period the Fund owned the securities detracted the most relative value in the Materials sector.
The Fund’s underweight position in Financials, one of the poorer performing sectors in the Index, added value relative to the Index through sector allocation. An overweight in Health Care, the second best performing sector in the Index, also contributed to the Fund’s performance.
The sub-advisors continue to focus on uncovering investment opportunities through stock selection that should benefit the Fund’s performance over the longer-term.
Top Ten Holdings
% of | ||||
Net Assets | ||||
LifePoint Hospitals, Inc. | 1.0 | % | ||
Valassis Communications, Inc. | 0.9 | % | ||
Tidewater, Inc. | 0.9 | % | ||
Rent-A-Center, Inc. | 0.8 | % | ||
Vishay Intertechnology, Inc. | 0.8 | % | ||
Ezcorp, Inc. | 0.8 | % | ||
AMERIGROUP Corp. | 0.7 | % | ||
Terex Corp. | 0.7 | % | ||
Portland General Electric Co. | 0.7 | % | ||
Great Plains Energy, Inc. | 0.7 | % |
Sector Allocation
% of | ||||
Equities | ||||
Financials | 25.5 | % | ||
Consumer Discretionary | 15.8 | % | ||
Industrials | 15.5 | % | ||
Information Technology | 14.6 | % | ||
Health Care | 9.2 | % | ||
Materials | 6.1 | % | ||
Energy | 6.0 | % | ||
Utilities | 5.3 | % | ||
Consumer Staples | 1.8 | % | ||
Telecommunication Services | 0.2 | % |
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American Beacon Small Cap Value FundSM
Fund Expenses
April 30, 2011 (Unaudited)
Fund Expenses
April 30, 2011 (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, 2010 through April 30, 2011.
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 $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 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 $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 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.
Beginning | Expenses Paid | |||||||||||
Account Value | Ending Account | During Period* | ||||||||||
11/1/10 | Value 4/30/11 | 11/1/10-4/30/11 | ||||||||||
Institutional Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,233.60 | $ | 4.39 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,020.87 | $ | 3.97 | ||||||
Y Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,233.03 | $ | 4.98 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,020.33 | $ | 4.51 | ||||||
Investor Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,230.78 | $ | 6.37 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,019.08 | $ | 5.77 | ||||||
Advisor Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,230.68 | $ | 7.14 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,018.39 | $ | 6.46 | ||||||
Retirement Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,228.85 | $ | 8.56 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,017.11 | $ | 7.75 | ||||||
AMR Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,234.47 | $ | 3.01 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,022.10 | $ | 2.73 | ||||||
A Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,230.29 | $ | 7.03 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,018.49 | $ | 6.37 | ||||||
C Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,225.71 | $ | 11.03 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,014.88 | $ | 9.98 |
* | Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.79%, 0.90%, 1.15%, 1.29%, 1.55%, 0.54%, 1.27% and 2.00% for the Institutional, Y, Investor, Advisor, Retirement, AMR, A and C 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% return before expenses. |
5
Table of Contents
Shares | Value | |||||||
($000) | ||||||||
COMMON STOCK - 94.17% | ||||||||
CONSUMER DISCRETIONARY - 14.91% | ||||||||
Auto Components - 1.47% | ||||||||
American Axle & Manufacturing Holdings, Inc. | 1,403,625 | 17,965 | ||||||
Cooper Tire & Rubber Co. | 229,900 | 6,203 | ||||||
Dorman Products, Inc.A | 9,200 | 359 | ||||||
Exide TechnologiesA | 191,900 | 1,927 | ||||||
Gentex Corp. | 456,300 | 14,305 | ||||||
Superior Industries International, Inc. | 58,400 | 1,476 | ||||||
The Goodyear Tire & Rubber Co. | 675,700 | 12,264 | ||||||
54,499 | ||||||||
Automobiles - 0.18% | ||||||||
Thor Industries, Inc. | 211,220 | 6,550 | ||||||
Commercial Services & Supplies - 0.10% | ||||||||
Viad Corp. | 154,540 | 3,834 | ||||||
Distributors - 0.24% | ||||||||
Brightpoint, Inc.A | 893,600 | 9,043 | ||||||
Hotels, Restaurants & Leisure - 0.97% | ||||||||
Bob Evans Farms, Inc. | 81,500 | 2,556 | ||||||
Boyd Gaming Corp.A B | 231,430 | 2,069 | ||||||
Brinker International, Inc. | 66,390 | 1,599 | ||||||
CEC Entertainment, Inc. | 30,800 | 1,165 | ||||||
Cracker Barrel Old Country Store, Inc. | 77,311 | 3,961 | ||||||
Domino’s Pizza, Inc. | 165,100 | 3,066 | ||||||
International Speedway Corp. | 129,704 | 3,970 | ||||||
Jack in the Box, Inc.A | 374,110 | 7,726 | ||||||
Lakes Entertainment, Inc.A | 150,800 | 345 | ||||||
Life Time Fitness, Inc.A | 29,305 | 1,146 | ||||||
Orient-Express Hotels Ltd. | 236,300 | 2,899 | ||||||
Ruby Tuesday, Inc. | 143,144 | 1,504 | ||||||
Sonic Corp.A | 145,265 | 1,630 | ||||||
Speedway Motorsports, Inc.B | 152,210 | 2,371 | ||||||
36,007 | ||||||||
Household Durables - 1.54% | ||||||||
Cavco Industries, Inc.A | 58,099 | 2,700 | ||||||
Ethan Allen Interiors, Inc. | 301,180 | 7,255 | ||||||
Furniture Brands International, Inc. | 833,900 | 4,036 | ||||||
Helen of Troy Ltd.A | 135,203 | 4,208 | ||||||
Lancaster Colony Corp.B | 118,730 | 7,256 | ||||||
Meritage Homes Corp. | 221,050 | 5,285 | ||||||
Mohawk Industries, Inc.A | 16,400 | 985 | ||||||
National Presto Industries, Inc.B | 14,600 | 1,621 | ||||||
Ryland Group, Inc. | 371,160 | 6,425 | ||||||
Tupperware Brands Corp. | 40,500 | 2,579 | ||||||
Whirlpool Corp. | 169,800 | 14,633 | ||||||
56,983 | ||||||||
Internet & Catalog Retail - 0.06% | ||||||||
Insight Enterprises, Inc.A | 102,700 | 1,763 | ||||||
Nutrisystem, Inc.B | 33,538 | 504 | ||||||
2,267 | ||||||||
Leisure Equipment & Products - 0.43% | ||||||||
Brunswick Corp. | 516,200 | 12,064 | ||||||
Callaway Golf Co. | 132,400 | 937 | ||||||
Jakks Pacific, Inc.A B | 137,690 | 2,897 | ||||||
15,898 | ||||||||
Media - 1.67% | ||||||||
Belo Corp. | 205,200 | 1,734 | ||||||
Cinemark Holdings, Inc. | 192,800 | 3,920 | ||||||
EW Scripps Co. | 114,900 | 1,092 | ||||||
Harte-Hanks, Inc. | 119,200 | 1,107 | ||||||
John Wiley & Sons, Inc. | 118,500 | 6,035 | ||||||
Meredith Corp.B | 238,810 | 7,981 | ||||||
Scholastic Corp. | 134,400 | 3,532 | ||||||
Sinclair Broadcast Group, Inc. | 135,900 | 1,561 | ||||||
Valassis Communications, Inc. | 1,191,900 | 34,363 | ||||||
61,325 | ||||||||
Multiline Retail - 1.23% | ||||||||
99 Cents Only StoresA | 619,580 | 12,491 | ||||||
Big Lots, Inc. | 406,200 | 16,699 | ||||||
BJ’s Wholesale Club, Inc.A | 141,410 | 7,257 | ||||||
Dillard’s, Inc.B | 166,600 | 8,000 | ||||||
Fred’s, Inc. | 86,300 | 1,205 | ||||||
45,652 | ||||||||
Specialty Retail - 5.66% | ||||||||
Aaron’s, Inc. | 337,235 | 9,709 | ||||||
Aeropostale, Inc.A | 605,900 | 15,469 | ||||||
American Greetings Corp. | 111,700 | 2,748 | ||||||
America’s Car-Mart, Inc.A | 319,500 | 7,821 | ||||||
Asbury Automotive Group, Inc. | 82,600 | 1,429 | ||||||
Ascena Retail Group, Inc.A | 147,300 | 4,609 | ||||||
Big 5 Sporting Goods Corp. | 197,020 | 2,354 | ||||||
Cabela’s, Inc.A | 807,100 | 20,612 | ||||||
Chico’s FAS, Inc. | 345,160 | 5,050 | ||||||
Collective Brands, Inc.A | 704,034 | 14,785 | ||||||
DG FastChannel, Inc.A | 441,350 | 16,149 | ||||||
Express, Inc. | 253,950 | 5,483 | ||||||
Foot Locker, Inc. | 810,030 | 17,432 | ||||||
GameStop Corp.A B | 207,500 | 5,329 | ||||||
Group 1 Automotive, Inc.B | 52,200 | 2,247 | ||||||
Hanesbrands, Inc.A | 30,750 | 1,000 | ||||||
Interline Brands, Inc.A | 16,200 | 342 | ||||||
JOS A Bank Clothiers, Inc.A B | 47,950 | 2,514 | ||||||
OfficeMax, Inc. | 91,925 | 916 | ||||||
Pier 1 Imports, Inc.A | 293,200 | 3,571 | ||||||
Regis Corp. | 189,810 | 3,227 | ||||||
Rent-A-Center, Inc. | 1,002,548 | 30,527 | ||||||
Sonic Automotive, Inc.B | 88,600 | 1,249 | ||||||
Stage Stores, Inc. | 120,820 | 2,327 | ||||||
The Buckle Inc.B | 95,900 | 4,362 | ||||||
The Cato Corp. | 45,100 | 1,151 | ||||||
The Childrens Place Retail Stores Inc.A | 114,250 | 6,075 | ||||||
The Finish Line Inc. | 96,300 | 2,069 | ||||||
The Men’s Wearhouse Inc. | 660,100 | 18,410 | ||||||
208,966 | ||||||||
Textiles & Apparel - 1.36% | ||||||||
Carter’s, Inc.A | 109,900 | 3,398 | ||||||
G-III Apparel Group Ltd.A | 53,000 | 2,378 | ||||||
Maidenform Brands, Inc.A | 64,200 | 2,033 | ||||||
Quiksilver, Inc.A | 1,753,000 | 7,626 | ||||||
Skechers U.S.A. Inc.A | 625,550 | 11,917 | ||||||
The Jones Group Inc. | 1,208,737 | 16,474 | ||||||
The Timberland Co. | 73,180 | 3,307 | ||||||
Unifirst Corp. | 32,500 | 1,682 | ||||||
Wolverine World Wide, Inc. | 39,300 | 1,559 | ||||||
50,374 | ||||||||
Total Consumer Discretionary | 551,398 | |||||||
See accompanying notes
6
Table of Contents
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
CONSUMER STAPLES - 1.65% | ||||||||
Food & Drug Retailing - 0.60% | ||||||||
Casey’s General Stores, Inc. | 89,836 | 3,506 | ||||||
Central European Distribution Corp.A | 62,025 | 733 | ||||||
Flowers Foods, Inc. | 205,650 | 6,285 | ||||||
Nash Finch Co. | 65,700 | 2,445 | ||||||
Spartan Stores, Inc. | 272,430 | 4,253 | ||||||
The Andersons Inc. | 50,600 | 2,512 | ||||||
Winn-Dixie Stores, Inc.A | 360,090 | 2,553 | ||||||
22,287 | ||||||||
Food Products - 0.90% | ||||||||
Chiquita Brands International, Inc.A | 154,617 | 2,462 | ||||||
Corn Products International, Inc. | 14,120 | 778 | ||||||
Fresh Del Monte Produce, Inc. | 163,200 | 4,424 | ||||||
Overhill Farms, Inc.A | 316,300 | 1,948 | ||||||
Sanderson Farms, Inc. | 83,945 | 3,996 | ||||||
Smithfield Foods, Inc.A | 441,700 | 10,407 | ||||||
Snyders-Lance, Inc. | 281,820 | 5,566 | ||||||
The Hain Celestial Group Inc.A | 108,956 | 3,706 | ||||||
33,287 | ||||||||
Personal Products - 0.05% | ||||||||
Revlon, Inc.A | 106,000 | 1,825 | ||||||
Tobacco - 0.10% | ||||||||
Schweitzer-Mauduit International, Inc. | 43,800 | 2,270 | ||||||
Universal Corp. | 30,144 | 1,308 | ||||||
3,578 | ||||||||
Total Consumer Staples | 60,977 | |||||||
ENERGY - 5.64% | ||||||||
Energy Equipment & Services - 3.36% | ||||||||
Atwood Oceanics, Inc.A | 450,602 | 20,245 | ||||||
Bristow Group, Inc. | 196,200 | 9,104 | ||||||
Cal Dive International, Inc.A | 837,860 | 6,586 | ||||||
Dawson Geophysical Co.A B | 34,860 | 1,555 | ||||||
Global Industries Ltd.A | 885,840 | 8,734 | ||||||
Hercules Offshore, Inc.A | 253,600 | 1,591 | ||||||
Matrix Service Co.A | 383,767 | 5,549 | ||||||
Newpark Resources, Inc.A | 651,560 | 5,884 | ||||||
Oil States International, Inc.A | 94,900 | 7,878 | ||||||
Parker Drilling Co.A | 125,100 | 892 | ||||||
SEACOR Holdings, Inc. | 59,750 | 5,905 | ||||||
Superior Energy Services, Inc.A | 37,735 | 1,450 | ||||||
Tesco Corp.A | 155,028 | 2,916 | ||||||
Tidewater, Inc. | 565,820 | 33,671 | ||||||
Unit Corp.A | 187,585 | 11,822 | ||||||
Willbros Group, Inc.A | 51,500 | 554 | ||||||
124,336 | ||||||||
Oil & Gas - 2.28% | ||||||||
Berry Petroleum Co. | 111,460 | 5,922 | ||||||
Bill Barrett Corp.A | 56,210 | 2,346 | ||||||
Cloud Peak Energy, Inc. | 617,900 | 12,864 | ||||||
Comstock Resources, Inc.A B | 227,290 | 7,287 | ||||||
Contango Oil & Gas Co.A | 90,535 | 5,606 | ||||||
Energy Partners Ltd.A | 100,200 | 1,825 | ||||||
Frontier Oil Corp. | 142,950 | 3,994 | ||||||
Helix Energy Solutions Group, Inc.A | 111,100 | 2,103 | ||||||
Petroquest Energy, Inc.A B | 150,400 | 1,318 | ||||||
Rex Energy Corp.A | 334,850 | 4,296 | ||||||
Stone Energy Corp.A | 490,500 | 17,343 | ||||||
Tesoro Corp. | 429,575 | 11,650 | ||||||
W&T Offshore, Inc.B | 167,434 | 4,489 | ||||||
Warren Resources, Inc.A | 730,168 | 3,308 | ||||||
84,351 | ||||||||
Total Energy | 208,687 | |||||||
FINANCIALS - 24.00% | ||||||||
Banks - 7.50% | ||||||||
1st Source Corp. | 45,800 | 972 | ||||||
Associated Banc-Corp. | 1,282,100 | 18,719 | ||||||
Astoria Financial Corp. | 201,300 | 2,913 | ||||||
BancorpSouth, Inc.B | 90,992 | 1,233 | ||||||
Bank of Hawaii Corp. | 30,570 | 1,492 | ||||||
Bank of the Ozarks, Inc. | 381,000 | 16,966 | ||||||
Brookline Bancorp, Inc. | 552,380 | 5,093 | ||||||
Cardinal Financial Corp. | 133,440 | 1,500 | ||||||
Cathay General Bancorp | 215,900 | 3,681 | ||||||
City Holding Co. | 38,700 | 1,320 | ||||||
City National Corp. | 110,293 | 6,299 | ||||||
Columbia Banking System, Inc. | 73,700 | 1,390 | ||||||
Community Bank System, Inc. | 28,300 | 708 | ||||||
CVB Financial Corp.B | 697,773 | 6,796 | ||||||
Dime Community Bancshares, Inc. | 86,415 | 1,336 | ||||||
First Commonwealth Financial Corp. | 288,200 | 1,787 | ||||||
First Financial Bancorp | 647,900 | 10,677 | ||||||
First Financial Holdings, Inc. | 109,600 | 1,203 | ||||||
First Horizon National Corp. | 584,993 | 6,406 | ||||||
First Interstate Bancsystem, Inc. | 296,000 | 4,049 | ||||||
First Midwest Bancorp, Inc. | 328,160 | 4,299 | ||||||
First Niagara Financial Group, Inc. | 165,700 | 2,386 | ||||||
FirstMerit Corp. | 72,750 | 1,271 | ||||||
FNB Corp. | 315,200 | 3,451 | ||||||
Fulton Financial Corp. | 962,355 | 11,240 | ||||||
Hancock Holding Co.B | 318,900 | 10,415 | ||||||
Home Federal Bancorp, Inc. | 171,000 | 2,078 | ||||||
Iberiabank Corp. | 351,400 | 21,089 | ||||||
Lakeland Financial Corp. | 67,550 | 1,480 | ||||||
MB Financial, Inc. | 148,190 | 3,066 | ||||||
National Penn Bancshares, Inc. | 1,025,177 | 8,417 | ||||||
Northwest Bancshares, Inc. | 227,600 | 2,865 | ||||||
Ocwen Financial Corp.A | 650,500 | 7,786 | ||||||
Old National Bancorp | 115,700 | 1,197 | ||||||
PacWest Bancorp | 256,570 | 5,899 | ||||||
Pinnacle Financial Partners, Inc.A B | 73,900 | 1,188 | ||||||
Popular, Inc. | 1,315,500 | 4,144 | ||||||
PrivateBancorp, Inc. | 399,570 | 6,289 | ||||||
Prosperity Bancshares, Inc. | 383,371 | 17,578 | ||||||
Provident Financial Services, Inc. | 471,510 | 6,846 | ||||||
Southwest Bancorp Inc/Stillwater OK | 159,040 | 2,255 | ||||||
Susquehanna Bancshares, Inc. | 243,200 | 2,242 | ||||||
SVB Financial Group | 177,470 | 10,726 | ||||||
Synovus Financial Corp.B | 5,660,100 | 14,150 | ||||||
Territorial Bancorp, Inc. | 6,700 | 134 | ||||||
Washington Federal, Inc. | 81,665 | 1,314 | ||||||
Washington Trust Bancorp, Inc. | 52,370 | 1,227 | ||||||
Webster Financial Corp. | 960,300 | 20,667 | ||||||
WesBanco, Inc. | 66,400 | 1,348 | ||||||
Whitney Holding Corp. | 306,668 | 4,152 | ||||||
Wilmington Trust Corp. | 110,500 | 498 | ||||||
Wintrust Financial Corp. | 31,920 | 1,075 | ||||||
277,312 | ||||||||
Diversified Financials - 5.22% | ||||||||
Apollo Investment Corp. | 126,781 | 1,502 | ||||||
Ares Capital Corp. | 614,400 | 10,881 | ||||||
CapitalSource, Inc. | 888,900 | 5,938 |
See accompanying notes
7
Table of Contents
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
Cash America International, Inc.B | 436,638 | 20,718 | ||||||
CoreLogic, Inc. | 388,860 | 7,159 | ||||||
Credit Acceptance Corp.A | 111,050 | 8,984 | ||||||
Duff & Phelps Corp. | 165,840 | 2,552 | ||||||
E*Trade Financial Corp.A | 529,429 | 8,598 | ||||||
Encore Capital Group, Inc.A | 71,400 | 2,138 | ||||||
Ezcorp, Inc. | 898,574 | 28,297 | ||||||
Fifth Street Finance Corp.B | 1,084,200 | 14,452 | ||||||
Heartland Payment Systems, Inc. | 105,400 | 2,104 | ||||||
Investment Technology Group, Inc. | 431,565 | 7,384 | ||||||
Janus Capital Group, Inc. | 1,052,090 | 12,804 | ||||||
Kirkland’s, Inc.A | 509,900 | 7,694 | ||||||
Knight Capital Group, Inc.A | 821,400 | 11,270 | ||||||
MF Global Holdings Ltd.A | 434,000 | 3,650 | ||||||
MGIC Investment Corp. | 2,376,669 | 20,582 | ||||||
National Financial Partners Corp. | 76,700 | 1,234 | ||||||
Nelnet, Inc. | 172,500 | 3,973 | ||||||
NewStar Financial, Inc.A | 126,900 | 1,516 | ||||||
Piper Jaffray CosA | 148,377 | 5,319 | ||||||
Waddell & Reed Financial, Inc. | 38,380 | 1,574 | ||||||
World Acceptance Corp.A B | 43,000 | 2,922 | ||||||
193,245 | ||||||||
Insurance - 8.33% | ||||||||
Alleghany Corp. | 7,956 | 2,618 | ||||||
Allied World Assurance Co Holdings Ltd. | 116,080 | 7,542 | ||||||
Alterra Capital Holdings Ltd. | 110,400 | 2,427 | ||||||
American Equity Investment Life Holding Co. | 196,100 | 2,522 | ||||||
American Financial Group, Inc. | 221,965 | 7,940 | ||||||
Amtrust Financial Services, Inc. | 223,392 | 4,311 | ||||||
Argo Group International Holdings Ltd. | 221,747 | 6,965 | ||||||
Aspen Insurance Holdings Ltd. | 698,990 | 19,970 | ||||||
CNO Financial Group, Inc.A | 2,000,200 | 16,122 | ||||||
Delphi Financial Group, Inc. | 500,800 | 16,001 | ||||||
Employers Holdings, Inc. | 485,200 | 9,782 | ||||||
Endurance Specialty Holdings Ltd. | 354,000 | 15,696 | ||||||
Enstar Group Ltd.A | 32,603 | 3,656 | ||||||
FBL Financial Group, Inc. | 74,300 | 2,266 | ||||||
First American Financial Corp. | 481,620 | 7,513 | ||||||
Global Indemnity plcA | 622,221 | 15,892 | ||||||
Harleysville Group, Inc. | 74,100 | 2,377 | ||||||
HCC Insurance Holdings, Inc. | 120,570 | 3,923 | ||||||
Horace Mann Educators Corp. | 217,800 | 3,894 | ||||||
Infinity Property & Casualty Corp. | 47,398 | 2,801 | ||||||
Maiden Holdings Ltd. | 180,200 | 1,342 | ||||||
MBIA, Inc.B | 499,600 | 5,156 | ||||||
Meadowbrook Insurance Group, Inc. | 133,100 | 1,363 | ||||||
Montpelier Re Holdings Ltd. | 166,708 | 3,016 | ||||||
National Western Life Insurance Co. | 2,100 | 338 | ||||||
Old Republic International Corp. | 112,900 | 1,430 | ||||||
OneBeacon Insurance Group Ltd. | 44,900 | 631 | ||||||
Platinum Underwriters Holdings Ltd. | 29,135 | 1,102 | ||||||
Primerica, Inc. | 7,100 | 164 | ||||||
ProAssurance Corp.A | 163,700 | 10,870 | ||||||
Protective Life Corp. | 472,045 | 12,703 | ||||||
RenaissanceRe Holdings Ltd. | 55,400 | 3,894 | ||||||
RLI Corp.B | 38,600 | 2,287 | ||||||
Safety Insurance Group, Inc. | 41,100 | 1,924 | ||||||
Selective Insurance Group, Inc. | 133,700 | 2,358 | ||||||
StanCorp Financial Group, Inc. | 431,350 | 18,591 | ||||||
Symetra Financial Corp. | 1,134,400 | 15,745 | ||||||
The Hanover Insurance Group Inc. | 253,740 | 10,713 | ||||||
The Navigators Group Inc.A | 265,123 | 13,741 | ||||||
Torchmark Corp. | 185,700 | 12,427 | ||||||
Tower Group, Inc. | 225,900 | 5,166 | ||||||
Transatlantic Holdings, Inc. | 133,900 | 6,600 | ||||||
Unitrin, Inc. | 114,100 | 3,450 | ||||||
Universal American Corp. | 387,900 | 8,960 | ||||||
Validus Holdings Ltd. | 102,800 | 3,345 | ||||||
White Mountains Insurance Group Ltd. | 18,074 | 6,462 | ||||||
307,996 | ||||||||
Lodging/Resorts - 0.20% | ||||||||
DiamondRock Hospitality Co.C | 626,810 | 7,547 | ||||||
Real Estate - 2.75% | ||||||||
Anworth Mortgage Asset Corp.C | 173,405 | 1,245 | ||||||
BioMed Realty Trust, Inc.C | 432,030 | 8,571 | ||||||
Brandywine Realty TrustC | 118,775 | 1,508 | ||||||
CapLease, Inc.C | 915,800 | 5,128 | ||||||
CBL & Associates Properties, Inc.C | 372,030 | 6,909 | ||||||
CommonWealth REITC | 52,621 | 1,441 | ||||||
DCT Industrial Trust, Inc.C | 1,112,950 | 6,466 | ||||||
Entertainment Properties TrustC | 178,020 | 8,476 | ||||||
Hospitality Properties TrustC | 58,400 | 1,410 | ||||||
Inland Real Estate Corp.C | 541,430 | 5,290 | ||||||
LaSalle Hotel PropertiesC | 293,860 | 8,269 | ||||||
Lexington Realty TrustB C | 859,860 | 8,581 | ||||||
Medical Properties Trust, Inc.C | 118,695 | 1,465 | ||||||
MI Developments, Inc. | 483,900 | 14,833 | ||||||
National Health Investors, Inc.C | 116,410 | 5,661 | ||||||
Omega Healthcare Investors, Inc.B C | 377,750 | 8,674 | ||||||
Pebblebrook Hotel Trust | 214,954 | 4,611 | ||||||
Pennsylvania Real Estate Investment TrustB C | 98,880 | 1,561 | ||||||
Urstadt Biddle Properties, Inc.C | 75,480 | 1,485 | ||||||
101,584 | ||||||||
Total Financials | 887,684 | |||||||
HEALTH CARE - 8.69% | ||||||||
Biotechnology - 0.30% | ||||||||
Charles River Laboratories International, Inc.A | 40,630 | 1,714 | ||||||
Cubist Pharmaceuticals, Inc.A | 157,800 | 5,341 | ||||||
Viropharma, Inc.A | 214,400 | 4,136 | ||||||
11,191 | ||||||||
Health Care Equipment & Supplies - 1.34% | ||||||||
CONMED Corp.A | 64,200 | 1,803 | ||||||
Haemonetics Corp.A | 151,620 | 10,644 | ||||||
Hillenbrand, Inc. | 165,700 | 3,798 | ||||||
Kensey Nash Corp.A | 12,436 | 308 | ||||||
Kinetic Concepts, Inc.A | 364,600 | 21,521 | ||||||
STERIS Corp. | 319,965 | 11,532 | ||||||
49,606 | ||||||||
Health Care Providers & Services - 6.10% | ||||||||
Air Methods Corp.A | 60,650 | 4,101 | ||||||
Alere, Inc.A | 35,616 | 1,323 | ||||||
Almost Family, Inc.A B | 44,400 | 1,539 | ||||||
Amedisys, Inc.A B | 42,100 | 1,403 | ||||||
AMERIGROUP Corp.A | 387,340 | 26,455 | ||||||
Amsurg Corp.A | 55,175 | 1,482 | ||||||
Assisted Living Concepts, Inc. | 55,711 | 2,009 | ||||||
Centene Corp.A | 389,600 | 14,115 | ||||||
Gentiva Health Services, Inc. | 688,200 | 19,270 | ||||||
Health Net, Inc.A | 262,700 | 8,748 | ||||||
Healthsouth Corp.A | 979,450 | 25,103 | ||||||
Healthspring, Inc.A | 340,080 | 14,110 |
See accompanying notes
8
Table of Contents
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
Healthways, Inc.A | 36,500 | 618 | ||||||
LifePoint Hospitals, Inc.A | 845,080 | 35,164 | ||||||
Magellan Health Services, Inc.A | 320,000 | 16,646 | ||||||
MAXIMUS, Inc. | 201,400 | 16,110 | ||||||
Mednax, Inc.A | 143,930 | 10,208 | ||||||
Omnicare, Inc. | 195,200 | 6,133 | ||||||
Omnicell, Inc.A | 348,410 | 5,359 | ||||||
Owens & Minor, Inc. | 43,450 | 1,497 | ||||||
Parexel International Corp.A | 279,730 | 7,765 | ||||||
The Ensign Group Inc. | 26,942 | 745 | ||||||
Triple-S Management Corp., Class BA | 50,200 | 1,051 | ||||||
WellCare Health Plans, Inc.A | 106,300 | 4,657 | ||||||
225,611 | ||||||||
Pharmaceuticals - 0.95% | ||||||||
Endo Pharmaceuticals Holdings, Inc.A | 339,850 | 13,309 | ||||||
Impax Laboratories, Inc.A | 141,500 | 3,874 | ||||||
Medicis Pharmaceutical Corp. | 375,600 | 13,318 | ||||||
Par Pharmaceutical Cos, Inc. | 97,900 | 3,372 | ||||||
PharMerica Corp.A | 98,700 | 1,299 | ||||||
35,172 | ||||||||
Total Health Care | 321,580 | |||||||
INDUSTRIALS - 14.60% | ||||||||
Aerospace & Defense - 1.66% | ||||||||
Alliant Techsystems, Inc. | 267,455 | 18,896 | ||||||
Curtiss-Wright Corp. | 39,407 | 1,310 | ||||||
Huntington Ingalls Industries, Inc.A B | 300,300 | 12,012 | ||||||
Spirit Aerosystems Holdings, Inc.A | 492,360 | 12,112 | ||||||
Triumph Group, Inc. | 113,750 | 9,796 | ||||||
World Fuel Services Corp. | 183,800 | 7,275 | ||||||
61,401 | ||||||||
Airlines - 0.10% | ||||||||
Aircastle Ltd. | 296,411 | 3,693 | ||||||
Building Products - 1.19% | ||||||||
Apogee Enterprises, Inc. | 276,007 | 3,941 | ||||||
Crane Co. | 208,600 | 10,411 | ||||||
Drew Industries, Inc. | 59,260 | 1,426 | ||||||
Griffon Corp.A | 144,551 | 1,842 | ||||||
Insituform Technologies, Inc.A | 400,300 | 10,132 | ||||||
Simpson Manufacturing Co, Inc. | 371,625 | 10,376 | ||||||
Trex Co, Inc.A B | 181,100 | 5,810 | ||||||
43,938 | ||||||||
Commercial Services & Supplies - 5.39% | ||||||||
Atlas Air Worldwide Holdings, Inc.A | 296,590 | 20,437 | ||||||
Clean Harbors, Inc.A | 93,938 | 9,253 | ||||||
Convergys Corp.A | 335,000 | 4,858 | ||||||
Con-way, Inc. | 473,300 | 18,421 | ||||||
CSG Systems International, Inc.A | 102,600 | 2,179 | ||||||
Deluxe Corp. | 141,000 | 3,818 | ||||||
Ennis, Inc. | 88,500 | 1,653 | ||||||
FTI Consulting, Inc.A | 242,450 | 9,674 | ||||||
G&K Services, Inc. | 51,320 | 1,699 | ||||||
Global Payments, Inc. | 44,800 | 2,385 | ||||||
Heidrick & Struggles International, Inc. | 407,680 | 9,540 | ||||||
Herman Miller, Inc. | 458,000 | 11,917 | ||||||
Hudson Highland Group, Inc.A | 630,300 | 3,801 | ||||||
Huron Consulting Group, Inc.A | 121,982 | 3,513 | ||||||
Insperity, Inc. | 212,800 | 6,446 | ||||||
Kelly Services, Inc. | 139,800 | 2,672 | ||||||
Korn/Ferry InternationalA | 550,860 | 11,408 | ||||||
Layne Christensen Co.A | 40,100 | 1,193 | ||||||
McGrath Rentcorp | 114,828 | 3,260 | ||||||
Mobile Mini, Inc.A | 623,100 | 15,521 | ||||||
PHH Corp.A B | 757,900 | 16,265 | ||||||
Steelcase, Inc. | 551,632 | 6,371 | ||||||
Team, Inc. | 107,364 | 2,679 | ||||||
Tetra Tech, Inc.A | 237,110 | 5,601 | ||||||
The Brink’s Co. | 392,940 | 12,971 | ||||||
The Geo Group IncA | 133,935 | 3,573 | ||||||
United Stationers, Inc. | 110,200 | 7,941 | ||||||
199,049 | ||||||||
Construction & Engineering - 1.54% | ||||||||
Aecom Technology Corp.A | 296,200 | 8,074 | ||||||
Comfort Systems USA, Inc. | 765,215 | 9,343 | ||||||
EMCOR Group, Inc.A | 552,975 | 17,126 | ||||||
Granite Construction, Inc.B | 260,520 | 7,081 | ||||||
Tutor Perini Corp. | 577,650 | 15,400 | ||||||
57,024 | ||||||||
Diversified Manufacturing - 0.04% | ||||||||
Barnes Group, Inc. | 66,355 | 1,642 | ||||||
Electrical Equipment - 0.96% | ||||||||
EnerSysA | 43,720 | 1,657 | ||||||
General Cable Corp. | 54,480 | 2,642 | ||||||
GT Solar International, Inc.A B | 399,000 | 4,457 | ||||||
Kemet Corp.A | 81,600 | 1,284 | ||||||
Regal-Beloit Corp. | 189,500 | 14,361 | ||||||
SunPower Corp.A B | 123,600 | 2,691 | ||||||
Thomas & Betts Corp. | 114,940 | 6,663 | ||||||
Vishay Precision Group, Inc.A | 108,414 | 1,789 | ||||||
35,544 | ||||||||
Energy Equipment & Services - 0.05% | ||||||||
Hornbeck Offshore Services, Inc.A | 66,100 | 1,932 | ||||||
Industrial Conglomerates - 0.46% | ||||||||
Carlisle Cos, Inc. | 121,880 | 6,038 | ||||||
GATX Corp. | 226,280 | 9,565 | ||||||
Teleflex, Inc. | 25,120 | 1,583 | ||||||
17,186 | ||||||||
Machinery - 2.11% | ||||||||
Astec Industries, Inc.A | 170,510 | 6,612 | ||||||
Briggs & Stratton Corp. | 73,105 | 1,725 | ||||||
CIRCOR International, Inc. | 136,700 | 6,210 | ||||||
Columbus McKinnon Corp. | 160,130 | 3,203 | ||||||
Esterline Technologies Corp. | 70,950 | 5,094 | ||||||
FreightCar America, Inc. | 59,150 | 1,773 | ||||||
John Bean Technologies Corp. | 64,300 | 1,300 | ||||||
Miller Industries, Inc. | 231,100 | 3,656 | ||||||
Mueller Industries, Inc. | 168,370 | 6,587 | ||||||
Oshkosh Corp. | 286,400 | 9,067 | ||||||
Reliance Steel & Aluminum Co. | 26,300 | 1,489 | ||||||
RSC Holdings, Inc.A B | 388,170 | 5,112 | ||||||
Terex Corp. | 754,300 | 26,234 | ||||||
78,062 | ||||||||
Marine - 0.65% | ||||||||
Diana Shipping, Inc. | 119,980 | 1,351 | ||||||
Genco Shipping & Trading Ltd.B | 952,150 | 7,989 | ||||||
Gulfmark Offshore, Inc.A | 71,962 | 3,063 | ||||||
Kirby Corp. | 202,600 | 11,504 | ||||||
23,907 | ||||||||
Road & Rail - 0.45% | ||||||||
Amerco, Inc.A | 58,800 | 5,981 | ||||||
Heartland Express, Inc. | 216,540 | 3,735 | ||||||
Marten Transport Ltd. | 113,049 | 2,528 |
See accompanying notes
9
Table of Contents
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
Ryder System, Inc. | 26,440 | 1,415 | ||||||
Saia, Inc.A | 174,900 | 2,903 | ||||||
16,562 | ||||||||
Total Industrials | 539,940 | |||||||
INFORMATION TECHNOLOGY - 13.77% | ||||||||
Communications Equipment - 1.34% | ||||||||
Arris Group, Inc.A | 1,061,932 | 12,743 | ||||||
Black Box Corp. | 417,700 | 14,594 | ||||||
InterDigital, Inc.B | 446,300 | 20,660 | ||||||
Plantronics, Inc. | 39,150 | 1,451 | ||||||
49,448 | ||||||||
Computers & Peripherals - 1.15% | ||||||||
Avid Technology, Inc.A | 105,450 | 1,959 | ||||||
Electronics for Imaging, Inc.A | 330,700 | 5,939 | ||||||
Lexmark International, Inc.A | 242,810 | 7,831 | ||||||
Mercury Computer Systems, Inc.A | 351,300 | 6,784 | ||||||
NCR Corp.A | 82,899 | 1,642 | ||||||
Sigma Designs, Inc.A B | 299,800 | 3,825 | ||||||
Synaptics, Inc.A B | 511,985 | 14,551 | ||||||
42,531 | ||||||||
Electronic Equipment & Instruments - 3.37% | ||||||||
AVX Corp. | 459,000 | 7,486 | ||||||
Diebold, Inc. | 374,990 | 12,675 | ||||||
Ingram Micro, Inc.A | 779,200 | 14,594 | ||||||
Littelfuse, Inc. | 281,600 | 17,519 | ||||||
Methode Electronics, Inc. | 754,800 | 9,329 | ||||||
Plexus Corp.A | 419,900 | 15,322 | ||||||
Tech Data Corp.A | 239,600 | 12,730 | ||||||
Veeco Instruments, Inc.A B | 96,400 | 4,929 | ||||||
Vishay Intertechnology, Inc.A | 1,584,800 | 30,239 | ||||||
124,823 | ||||||||
Internet Software & Services - 1.20% | ||||||||
Earthlink, Inc. | 613,500 | 5,043 | ||||||
Ebix, Inc.A B | 724,000 | 16,543 | ||||||
IAC/InterActiveCorpA | 427,600 | 15,441 | ||||||
Netgear, Inc.A | 36,010 | 1,503 | ||||||
RealNetworks, Inc.A | 142,400 | 527 | ||||||
Websense, Inc.A | 203,916 | 5,259 | ||||||
44,316 | ||||||||
IT Consulting & Services - 1.49% | ||||||||
CACI International, Inc.A | 274,730 | 16,789 | ||||||
Ciber, Inc.A | 399,800 | �� | 2,287 | |||||
Mantech International Corp. | 161,600 | 7,093 | ||||||
Ness Technologies, Inc.A | 756,000 | 4,929 | ||||||
SYNNEX Corp.A | 633,700 | 21,247 | ||||||
Unisys Corp. | 93,400 | 2,772 | ||||||
55,117 | ||||||||
Semiconductor Equipment & Products - 2.99% | ||||||||
Advanced Energy Industries, Inc.A | 45,600 | 645 | ||||||
Amkor Technology, Inc.A B | 682,988 | 4,576 | ||||||
Applied Micro Circuits Corp.A | 300,980 | 3,154 | ||||||
ATMI, Inc.A | 72,500 | 1,443 | ||||||
Brooks Automation, Inc.A | 1,424,080 | 17,417 | ||||||
Cymer, Inc.A | 149,460 | 7,191 | ||||||
Entegris, Inc.A | 362,700 | 3,130 | ||||||
Entropic Communications, Inc.A B | 1,280,160 | 11,214 | ||||||
Fairchild Semiconductor International, Inc.A | 329,500 | 6,910 | ||||||
Kulicke & Soffa Industries, Inc.A | 177,400 | 1,607 | ||||||
Lattice Semiconductor Corp.A | 313,500 | 2,129 | ||||||
Microsemi Corp. | 59,235 | 1,398 | ||||||
MKS Instruments, Inc. | 138,400 | 3,928 | ||||||
Novellus Systems, Inc.A | 231,970 | 7,446 | ||||||
PMC — Sierra, Inc. | 181,375 | 1,455 | ||||||
QLogic Corp.A | 415,483 | 7,470 | ||||||
RF Micro Devices, Inc.A | 600,500 | 3,999 | ||||||
Teradyne, Inc.A | 490,600 | 7,899 | ||||||
Tessera Technologies, Inc.A | 646,350 | 12,772 | ||||||
TriQuint Semiconductor, Inc.A | 340,470 | 4,688 | ||||||
110,471 | ||||||||
Software - 2.23% | ||||||||
Aspen Technology, Inc.A | 403,990 | 6,056 | ||||||
Cadence Design Systems, Inc.A | 574,270 | 5,961 | ||||||
Cognex Corp. | 620,740 | 19,417 | ||||||
DST Systems, Inc. | 156,220 | 7,703 | ||||||
FARO Technologies, Inc.A | 167,500 | 7,231 | ||||||
JDA Software Group, Inc.A | 391,146 | 12,818 | ||||||
Mentor Graphics Corp. | 1,184,700 | 17,474 | ||||||
Net 1 UEPS Technologies, Inc.A | 665 | 6 | ||||||
Netscout Systems, Inc.A | 226,660 | 5,800 | ||||||
82,466 | ||||||||
Total Information Technology | 509,172 | |||||||
MATERIALS - 5.77% | ||||||||
Chemicals - 2.19% | ||||||||
A Schulman, Inc. | 48,200 | 1,220 | ||||||
Arch Chemicals, Inc. | 62,700 | 2,425 | ||||||
Cabot Corp. | 177,400 | 7,956 | ||||||
HB Fuller Co. | 100,600 | 2,198 | ||||||
Innophos Holdings, Inc. | 39,800 | 1,844 | ||||||
Kraton Performance Polymers, Inc.A | 66,400 | 3,065 | ||||||
NewMarket Corp. | 39,200 | 7,225 | ||||||
OM Group, Inc. | 424,685 | 15,391 | ||||||
PolyOne Corp. | 1,531,400 | 22,174 | ||||||
Solutia, Inc.A | 324,000 | 8,537 | ||||||
Stepan Co.B | 26,700 | 1,922 | ||||||
The Scotts Miracle-Gro Co. | 20,110 | 1,136 | ||||||
WR Grace & CoA | 131,100 | 5,947 | ||||||
81,040 | ||||||||
Construction Materials - 0.03% | ||||||||
Ameron International Corp. | 14,910 | 1,049 | ||||||
Containers & Packaging - 1.00% | ||||||||
Boise, Inc. | 233,000 | 2,288 | ||||||
Greif, Inc. | 205,100 | 12,738 | ||||||
Jarden Corp. | 235,455 | 8,568 | ||||||
Packaging Corp of America | 206,840 | 5,901 | ||||||
Rock-Tenn Co.B | 107,000 | 7,390 | ||||||
36,885 | ||||||||
Metals & Mining - 2.05% | ||||||||
AMCOL International Corp. | 91,770 | 3,416 | ||||||
Carpenter Technology Corp. | 176,220 | 9,033 | ||||||
Century Aluminum Co. | 157,600 | 3,149 | ||||||
Coeur d’Alene Mines Corp. | 529,000 | 16,775 | ||||||
Gammon Gold, Inc.A | 174,453 | 1,903 | ||||||
Gibraltar Industries, Inc. | 433,339 | 5,061 | ||||||
James River Coal Co.A | 139,823 | 3,261 | ||||||
Kaiser Aluminum Corp.B | 87,200 | 4,370 | ||||||
Minefinders Corp.A B | 77,966 | 1,307 | ||||||
New Gold, Inc.A | 55,094 | 617 | ||||||
Noranda Aluminum Holding Corp.A | 1,121,900 | 19,061 | ||||||
RTI International Metals, Inc. | 75,300 | 2,405 | ||||||
Thompson Creek Metals Co, Inc.A | 109,320 | 1,348 | ||||||
Universal Stainless & AlloyA | 82,300 | 2,983 |
See accompanying notes
10
Table of Contents
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
Worthington Industries, Inc. | 60,238 | 1,299 | ||||||
75,988 | ||||||||
Paper & Forest Products - 0.50% | ||||||||
Domtar Corp. | 78,600 | 7,311 | ||||||
Louisiana-Pacific Corp. | 965,430 | 8,979 | ||||||
PH Glatfelter Co. | 61,800 | 840 | ||||||
Wausau Paper Corp. | 222,810 | 1,504 | ||||||
18,634 | ||||||||
Total Materials | 213,596 | |||||||
TELECOMMUNICATION SERVICES - 0.19% | ||||||||
EchoStar Corp.A | 99,700 | 3,697 | ||||||
Loral Space & Communications, Inc.A | 46,000 | 3,215 | ||||||
Total Telecommunication Services | 6,912 | |||||||
UTILITIES - 4.95% | ||||||||
Electric Utilities - 3.39% | ||||||||
Allete, Inc. | 38,490 | 1,558 | ||||||
Black Hills Corp. | 105,100 | 3,652 | ||||||
El Paso Electric Co. | 375,270 | 11,626 | ||||||
Great Plains Energy, Inc. | 1,250,300 | 25,731 | ||||||
Hawaiian Electric Industries, Inc. | 312,620 | 7,969 | ||||||
IDACORP, Inc. | 189,280 | 7,422 | ||||||
NorthWestern Corp. | 329,130 | 10,713 | ||||||
NV Energy, Inc. | 582,503 | 8,848 | ||||||
Otter Tail Corp. | 32,413 | 758 | ||||||
PNM Resources, Inc. | 667,004 | 10,225 | ||||||
Portland General Electric Co. | 1,046,494 | 26,120 | ||||||
TECO Energy, Inc. | 19,335 | 373 | ||||||
The Empire District Electric Co. | 297,900 | 6,685 | ||||||
Unisource Energy Corp. | 100,100 | 3,717 | ||||||
125,397 | ||||||||
Gas Utilities - 0.98% | ||||||||
AGL Resources, Inc. | 132,200 | 5,488 | ||||||
Atmos Energy Corp. | 301,440 | 10,516 | ||||||
Southern Union Co. | 174,200 | 5,209 | ||||||
Southwest Gas Corp. | 61,300 | 2,438 | ||||||
UGI Corp. | 175,000 | 5,828 | ||||||
WGL Holdings, Inc. | 170,520 | 6,739 | ||||||
36,218 | ||||||||
Multi-Utilities - 0.58% | ||||||||
Avista Corp. | 155,500 | 3,786 | ||||||
Vectren Corp. | 49,640 | 1,419 | ||||||
Westar Energy, Inc. | 603,200 | 16,413 | ||||||
21,618 | ||||||||
Total Utilities | 183,233 | |||||||
Total Common Stock (Cost $2,709,847) | 3,483,179 | |||||||
Shares | ||||||||
SHORT-TERM INVESTMENTS- 5.41% | ||||||||
American Beacon U.S. Government Money Market Select Fund D | 20,000,000 | 20,000 | ||||||
JPMorgan U.S. Government Money Market Fund | 180,247,178 | 180,247 | ||||||
Total Short-Term Investments (Cost $200,247) | 200,247 | |||||||
SECURITIES LENDING COLLATERAL - 5.75% | ||||||||
American Beacon U.S. Government Money Market Select FundD | 198,915,754 | 198,916 | ||||||
Wells Fargo Advantage Government Money Market Fund | 13,659,140 | 13,659 | ||||||
Total Securities Lending Collateral(Cost $212,575) | 212,575 | |||||||
TOTAL INVESTMENTS - 105.33% (Cost $3,122,669) | 3,896,001 | |||||||
LIABILITIES, NET OF OTHER ASSETS — (5.33%) | (197,279 | ) | ||||||
TOTAL NET ASSETS - 100.00% | $ | 3,698,722 | ||||||
Percentages are stated as a percent of net assets. |
A | Non-income producing security. | |
B | All or a portion of this security is on loan at April 30, 2011. | |
C | REIT | |
D | The Fund is affiliated by having the same investment advisor. |
See accompanying notes
11
Table of Contents
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Futures Contracts
(dollars in thousands)
(dollars in thousands)
Unrealized | ||||||||||||||||
Appreciation/ | ||||||||||||||||
Number of Contracts | Expiration Date | Value | (Depreciation) | |||||||||||||
Russell 2000 Mini Index Future | 4,836 | June, 2011 | 208,891 | 10,330 | ||||||||||||
208,891 | 10,330 | |||||||||||||||
See accompanying notes
12
Table of Contents
American Beacon Small Cap Value FundSM
Statement of Assets and Liabilities
April 30, 2011 (Unaudited) (in thousands, except share and per share amounts)
Statement of Assets and Liabilities
April 30, 2011 (Unaudited) (in thousands, except share and per share amounts)
Assets: | ||||
Investments in unaffiliated securities, at value A C | $ | 3,697,085 | ||
Investments in affiliated securities, at value B | 198,916 | |||
Cash | 16 | |||
Deposit with brokers for futures contracts | 7,473 | |||
Receivable for investments sold | 23,898 | |||
Dividends and interest receivable | 855 | |||
Receivable for fund shares sold | 5,317 | |||
Receivable for variation margin on open futures contracts | 1,176 | |||
Prepaid expenses | 72 | |||
Total assets | 3,934,808 | |||
Liabilities: | ||||
Payable for investments purchased | 17,426 | |||
Payable upon return of securities loaned | 212,575 | |||
Payable for fund shares redeemed | 3,577 | |||
Management and investment advisory fees payable (Note 2) | 1,197 | |||
Administrative service and service fees payable (Note 2) | 1,050 | |||
Professional fees payable | 12 | |||
Other liabilities | 249 | |||
Total liabilities | 236,086 | |||
Net assets | $ | 3,698,722 | ||
Analysis of Net Assets: | ||||
Paid-in-capital | 3,146,714 | |||
Undistributed net investment income | 2,629 | |||
Accumulated net realized loss | (234,283 | ) | ||
Unrealized appreciation of investments, futures contracts, and foreign currency | 783,662 | |||
Net assets | $ | 3,698,722 | ||
Shares outstanding (no par value): | ||||
Institutional Class | 90,194,064 | |||
Y Class | 145,689 | |||
Investor Class | 56,767,402 | |||
Advisor Class | 1,817,775 | |||
Retirement Class | 36,424 | |||
AMR Class | 21,438,462 | |||
A Class | 35,718 | |||
C Class | 14,087 | |||
Net asset value, offering and redemption price per share: | ||||
Institutional Class | $ | 21.91 | ||
Y Class | $ | 21.81 | ||
Investor Class | $ | 21.34 | ||
Advisor Class | $ | 21.26 | ||
Retirement Class | $ | 21.12 | ||
AMR Class | $ | 21.82 | ||
A Class (net asset value and redemption price) | $ | 21.33 | ||
A Class (offering price) | $ | 22.63 | ||
C Class | $ | 21.25 | ||
A Cost of investments in unaffiliated securities | $ | 2,923,753 | ||
B Cost of investments in affiliated securities | $ | 198,916 | ||
C Market value of securities on loan | $ | 207,711 |
See accompanying notes
13
Table of Contents
American Beacon Small Cap Value FundSM
Statement of Operations
Six Months Ended April 30, 2011 (in thousands) (Unaudited)
Statement of Operations
Six Months Ended April 30, 2011 (in thousands) (Unaudited)
Investment Income: | ||||
Dividend income from unaffiliated securities (net of foreign taxes)* | $ | 21,461 | ||
Dividend income from affiliated securities | 6 | |||
Interest income | 6 | |||
Income derived from securities lending, net | 262 | |||
Total investment income | 21,735 | |||
Expenses: | ||||
Management and investment advisory fees (Note 2) | 7,229 | |||
Administrative service fees (Note 2): | ||||
Institutional Class | 2,622 | |||
Y Class | 3 | |||
Investor Class | 1,600 | |||
Advisor Class | 54 | |||
Retirement Class | 1 | |||
AMR Class | 104 | |||
A Class | 1 | |||
Transfer agent fees: | ||||
Institutional Class | 41 | |||
Investor Class | 27 | |||
Advisor Class | 1 | |||
AMR Class | 16 | |||
Custody and fund accounting fees | 187 | |||
Professional fees | 78 | |||
Registration fees and expenses | 61 | |||
Service fees (Note 2): | ||||
Y Class | 1 | |||
Investor Class | 1,930 | |||
Advisor Class | 45 | |||
Retirement Class | 1 | |||
Distribution fees (Note 2): | ||||
Advisor Class | 45 | |||
Retirement Class | 1 | |||
Prospectus and shareholder reports | 177 | |||
Insurance fees | 34 | |||
Trustee fees | 107 | |||
Other expenses | 91 | |||
Total expenses | 14,457 | |||
Net investment income | 7,278 | |||
Realized and unrealized gain (loss) on investments: | ||||
Net realized gain (loss) from: | ||||
Investments | 182,077 | |||
Commission recapture (Note 1) | 59 | |||
Futures contracts | 38,189 | |||
Change in net unrealized appreciation or depreciation of: | ||||
Investments | 433,751 | |||
Futures contracts | 2,805 | |||
Net gain on investments | 656,881 | |||
Net increase in net assets resulting from operations | $ | 664,159 | ||
* Foreign taxes | $ | 16 |
See accompanying notes
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American Beacon Small Cap Value FundSM
Statement of Changes of Net Assets (in thousands)
Statement of Changes of Net Assets (in thousands)
Six Months | Year Ended | |||||||
Ended | October 31, | |||||||
April 30, 2011 | 2010 | |||||||
(unaudited) | ||||||||
Increase (Decrease) in Net Assets: | ||||||||
Operations: | ||||||||
Net investment income | $ | 7,278 | $ | 11,136 | ||||
Net realized gain on investments, futures contracts, and foreign currency transactions | 220,325 | 179,781 | ||||||
Change in net unrealized appreciation of investments, futures contracts, and foreign currency translations | 436,556 | 296,564 | ||||||
Net increase in net assets resulting from operations | 664,159 | 487,481 | ||||||
Distributions to Shareholders: | ||||||||
Net investment income: | ||||||||
Institutional Class | (7,510 | ) | (6,896 | ) | ||||
Y Class | (4 | ) | — | |||||
Investor Class | (3,709 | ) | (2,275 | ) | ||||
Advisor Class | (117 | ) | — | |||||
Retirement Class | (1 | ) | — | |||||
AMR Class | (2,000 | ) | (2,187 | ) | ||||
Net distributions to shareholders | (13,341 | ) | (11,358 | ) | ||||
Capital Share Transactions: | ||||||||
Proceeds from sales of shares | 583,649 | 942,144 | ||||||
Reinvestment of dividends and distributions | 13,190 | 11,249 | ||||||
Cost of shares redeemed | (285,081 | ) | (752,815 | ) | ||||
Net increase in net assets from capital share transactions | 311,758 | 200,578 | ||||||
Net increase in net assets | 962,576 | 676,701 | ||||||
Net Assets: | ||||||||
Beginning of period | 2,736,146 | 2,059,445 | ||||||
End of Period * | $ | 3,698,722 | $ | 2,736,146 | ||||
* Includes undistributed net investment income of | $ | 2,629 | $ | 8,788 | ||||
See accompanying notes
15
Table of Contents
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
1. Organization and Significant Accounting Policies
American Beacon Funds (the “Trust”), which is comprised of 19 Funds, 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 | |
A Class | General public and investors investing through an intermediary with applicable sales charge | |
C Class | General public and investors investing through an intermediary with applicable sales charge |
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 fair value.
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American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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”).
Futures are valued based upon the last sale price at the close of market on the principal exchange on which they are traded.
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. During the period there were no significant transfers between levels. As of April 30, 2011, the Fund’s investments were classified as follows: (in thousands)
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Common Stocks | $ | 3,483,179 | $ | — | $ | — | $ | 3,483,179 | ||||||||
Short-Term Investments | 200,247 | — | — | 200,247 | ||||||||||||
Securities Lending Collateral | 212,575 | — | — | 212,575 | ||||||||||||
Total Investments in Securities | $ | 3,896,001 | $ | — | $ | — | $ | 3,896,001 | ||||||||
Futures Contracts | 10,330 | — | — | 10,330 |
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 except certain dividends from foreign securities which are recorded as soon as the information is available to the Fund. 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.
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American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
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 Statement of Assets and Liabilities as deposit with broker 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.
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2011 (in thousands)
Liability | ||||||
Statement of Assets and Liabilities | Derivatives | Fair Value | ||||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* | $ | 10,330 |
Effect of derivative instruments not accounted for as hedging instruments during the year ended April 30, 2011 (in thousands)
Statement of Operations | Derivative | Fair Value | ||||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 38,189 | |||||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | $ | 2,805 |
* | 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
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American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
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 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 unaffiliated investment advisors hired by the Manager to direct investment activities of the Funds. Management fees paid during the six months ended April 30, 2011 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% | $ | 7,229 | $ | 6,412 | $ | 817 |
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, 2011, securities lending fees paid to the Manager by the Fund were $34,559.
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 0.40% of the average daily net assets of the A and C Classes of the Fund, 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. Administrative Service Fees for the C Class for the six months ended April 30, 2011 was less than $500.
Distribution Plans
The Fund, except for the Advisor and Retirement, A and C 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.
Separate Distribution Plans (the “Distribution Plans”) have been adopted pursuant to Rule 12b-1 under the Act for the Advisor and Retirement, A and C Classes of the Fund. Under the Distribution Plans, as compensation for distribution assistance, the Manager receives an annual fee of 0.25% of the average daily net assets of the Advisor and A Classes, 0.50% of the average daily net assets of the Retirement Class, and 1.00% of the average daily net assets of the C 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
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American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
distribution assistance. Distribution expenses for the A and C Classes for the six months ended April 30, 2011 were less than $500.
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, A and C 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, 0.15% of the average daily net assets of the A and C Classes 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. Service expenses for the Retirement, A, and C Classes for the six months ended April 30, 2011 were less than $500.
Brokerage Commissions
Affiliated entities of a sub-advisor to the Fund received net commissions on purchases and sales of the Fund’s portfolio securities totaling $1,978 for the six months ended April 30, 2011.
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, 2011, the Manager earned fees from the Select Funds totaling $6,411 on the Fund’s direct investment in the Select Funds and $48,479 from the Fund’s securities lending collateral invested in the Select Funds.
Interfund Lending Program
Pursuant to an exemptive order by the 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, 2011, 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, 2011, the Y and C Classes waived $1 and $2, respectively. A liability has not been booked as the manager does not intend to seek repayment of this reimbursement.
3. Federal Income and Excise Taxes
It is the policy of the Fund to qualify as a regulated investment company, by complying with all applicable provisions of the Code and to make distribution of taxable income sufficient to relieve it from substantially all federal income and excise taxes. For federal income tax purposes, the Fund is treated as a single entity for the purpose of determining such qualification.
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American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
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, 2010 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, 2011 and the fiscal year ended October 31, 2010 were as follows (in thousands):
Six Months Ended | Year Ended | |||||||
April 30, | October 31, | |||||||
2011 | 2010 | |||||||
(unaudited) | ||||||||
Distributions paid from: | ||||||||
Ordinary income* | ||||||||
Institutional Class | $ | 7,510 | $ | 6,896 | ||||
Y Class | 4 | — | ||||||
Investor Class | 3,709 | 2,275 | ||||||
Advisor Class | 117 | — | ||||||
Retirement Class | 1 | — | ||||||
AMR Class | 2,000 | 2,187 | ||||||
Total distributions paid | $ | 13,341 | $ | 11,358 | ||||
* | For tax purposes, short-term capital gains are considered ordinary income distributions. |
As of April 30, 2011, the components of distributable earnings on a tax basis were as follows (in thousands):
Cost basis of investments for federal income tax purposes | $ | 3,169,431 | ||
Unrealized appreciation | 802,109 | |||
Unrealized depreciation | (75,539 | ) | ||
Net unrealized appreciation/(depreciation) | 726,570 | |||
Undistributed ordinary income | (179 | ) | ||
Undistributed long-term gain/(loss) | (184,713 | ) | ||
Undistributed long-term gain/(loss) | 10,330 | |||
Distributable earnings | $ | 552,008 | ||
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 as of April 30, 2011 (in thousands):
Paid-in-capital | $ | 169 | ||
Undistributed net investment income | (96 | ) | ||
Accumulated net realized gain (loss) | (73 | ) | ||
Unrealized appreciation (depreciation) of investments, futures contracts and foreign currency | — |
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American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
At April 30, 2011, the capital loss carry forward position of the Fund for federal income tax purposes was $174,383 expiring in 2017. The Fund utilized $219,075 of net capital loss carryovers for the six months ended April 30, 2011.
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, 2011 were (in thousands) $1,069,127 and $812,932, respectively.
A summary of the Fund’s direct transactions and security lending collateral transactions in the Select Funds for the six months ended April 30, 2011 is set forth below (in thousands):
October 31, 2010 | April 30, 2011 | |||||||||||||||
Affiliate | Shares/Market Value | Purchases | Sales | Shares/Market Value | ||||||||||||
Direct | $ | — | $ | 20,000 | $ | — | $ | 20,000 | ||||||||
Security Lending | 48,791 | 389,824 | 239,699 | 198,916 |
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.
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Table of Contents
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
As of April 30, 2011, 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 | ||
$ 207,711 | $ — | $ 212,575 |
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, 2011
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 14,117 | $ | 287,546 | 100 | $ | 2,102 | 9,825 | $ | 195,490 | 354 | $ | 6,972 | ||||||||||||||||||||
Reinvestment of dividends | 372 | 7,454 | — | 5 | 185 | 3,613 | 6 | 117 | ||||||||||||||||||||||||
Shares redeemed | (6,702 | ) | (137,406 | ) | (7 | ) | (154 | ) | (5,639 | ) | (111,289 | ) | (405 | ) | (8,070 | ) | ||||||||||||||||
Net increase (decrease) in shares outstanding | 7,787 | $ | 157,594 | 93 | $ | 1,953 | 4,371 | $ | 87,814 | (45 | ) | $ | (981 | ) | ||||||||||||||||||
�� |
Retirement Class | AMR Class | A Class | C Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 21 | $ | 419 | 4,686 | $ | 90,100 | 36 | $ | 736 | 14 | $ | 284 | ||||||||||||||||||||
Reinvestment of dividends | — | 1 | 100 | 2,000 | — | — | — | — | ||||||||||||||||||||||||
Shares redeemed | (5 | ) | (99 | ) | (1,407 | ) | (28,034 | ) | (1 | ) | (28 | ) | — | (1 | ) | |||||||||||||||||
Net increase (decrease) in shares outstanding | 16 | $ | 321 | 3,379 | $ | 64,066 | 35 | $ | 708 | 14 | $ | 283 | ||||||||||||||||||||
Year Ended October 31, 2010
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 26,437 | $ | 442,447 | 98 | $ | 1,732 | 15,077 | $ | 249,419 | 937 | $ | 15,835 | ||||||||||||||||||||
Reinvestment of dividends | 431 | 6,838 | — | — | 143 | 2,224 | — | — | ||||||||||||||||||||||||
Shares redeemed | (16,704 | ) | (273,902 | ) | (46 | ) | (788 | ) | (14,033 | ) | (226,469 | ) | (1,102 | ) | (17,989 | ) | ||||||||||||||||
Net increase (decrease) in shares outstanding | 10,074 | $ | 175,383 | 52 | $ | 944 | 1,187 | $ | 25,174 | (165 | ) | $ | (2,154 | ) | ||||||||||||||||||
Retirement Class | AMR Class | A Class | C Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 22 | $ | 390 | 13,750 | $ | 232,298 | 1 | $ | 17 | — | $ | 6 | ||||||||||||||||||||
Reinvestment of dividends | — | — | 138 | 2,187 | — | — | — | — | ||||||||||||||||||||||||
Shares redeemed | (1 | ) | (25 | ) | (14,762 | ) | (233,642 | ) | — | — | — | — | ||||||||||||||||||||
Net increase (decrease) in shares outstanding | 21 | $ | 365 | (874 | ) | $ | 843 | 1 | $ | 17 | — | $ | 6 | |||||||||||||||||||
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American Beacon Small Cap Value Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | |||||||||||||||||||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
April 30,F | Year Ended October 31, | April 30,F | ||||||||||||||||||||||||||||||
2011F | 2010 | 2009 | 2008 | 2007 | 2006 | 2011F | 2010 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.84 | $ | 14.39 | $ | 12.53 | $ | 22.10 | $ | 22.53 | $ | 20.43 | $ | 17.76 | $ | 14.37 | ||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income | 0.05 | 0.08 | 0.10 | 0.25 | 0.22 | 0.19 | 0.04 | 0.14 | ||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 4.11 | 3.46 | 1.96 | (7.13 | ) | 1.10 | 2.94 | 4.09 | 3.36 | |||||||||||||||||||||||
Total income (loss) from investment operations | 4.16 | 3.54 | 2.06 | (6.88 | ) | 1.32 | 3.13 | 4.13 | 3.50 | |||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.09 | ) | (0.09 | ) | (0.20 | ) | (0.22 | ) | (0.19 | ) | (0.14 | ) | (0.08 | ) | (0.11 | ) | ||||||||||||||||
Distributions from net realized gains on securities | — | — | — | (2.47 | ) | (1.56 | ) | (0.89 | ) | — | — | |||||||||||||||||||||
Total distributions | (0.09 | ) | (0.09 | ) | (0.20 | ) | (2.69 | ) | (1.75 | ) | (1.03 | ) | (0.08 | ) | (0.11 | ) | ||||||||||||||||
Net asset value, end of period | $ | 21.91 | $ | 17.84 | $ | 14.39 | $ | 12.53 | $ | 22.10 | $ | 22.53 | $ | 21.81 | $ | 17.76 | ||||||||||||||||
Total return A,B | 23.36 | %C | 24.71 | % | 16.97 | % | (34.84 | )% | 6.10 | % | 15.80 | % | 23.30 | %C | 24.44 | % | ||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,975,777 | $ | 1,470,084 | $ | 1,040,805 | $ | 826,232 | $ | 1,413,734 | $ | 1,319,024 | $ | 3,177 | $ | 931 | ||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||
Expenses, net of waivers | 0.79 | % | 0.81 | % | 0.84 | % | 0.81 | % | 0.80 | % | 0.82 | % | 0.90 | % | 0.91 | % | ||||||||||||||||
Expenses before waivers | 0.79 | % | 0.81 | % | 0.84 | % | 0.81 | % | 0.80 | % | 0.82 | % | 0.90 | % | 0.91 | % | ||||||||||||||||
Net investment income (loss), net of waivers | 0.54 | % | 0.52 | % | 0.87 | % | 1.36 | % | 0.94 | % | 0.83 | % | 0.31 | % | 0.39 | % | ||||||||||||||||
Net investment income (loss), before waivers | 0.54 | % | 0.52 | % | 0.87 | % | 1.36 | % | 0.94 | % | 0.83 | % | 0.31 | % | 0.39 | % | ||||||||||||||||
Portfolio turnover rate | 26 | %C | 59 | % | 61 | % | 62 | % | 52 | % | 48 | % | 26 | %C | 59 | % |
A | 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. | |
B | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
C | Not annualized. | |
D | Annualized. | |
E | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. | |
F | On November 30, 2010 Metropolitan West Capital Management, LLC was terminated and ceased managing assets of the Small Cap Value Fund. |
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Investor Class | Advisor Class | ||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
August 03 to | April 30, | Year Ended October 31, | April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||||||||||||||||
October 31, 2009 | 2011F | 2010 | 2009 | 2008 | 2007 | 2006 | 2011F | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 14.03 | $ | 17.40 | $ | 14.05 | $ | 12.22 | $ | 21.62 | $ | 22.08 | $ | 20.04 | $ | 17.33 | $ | 13.97 | $ | 12.13 | $ | 21.46 | $ | 21.94 | ||||||||||||||||||||||||
0.00 | 0.02 | 0.03 | 0.08 | 0.20 | 0.16 | 0.13 | 0.00 | 0.01 | 0.06 | 0.16 | 0.10 | ||||||||||||||||||||||||||||||||||||
0.34 | 3.99 | 3.37 | 1.91 | (6.97 | ) | 1.07 | 2.89 | 3.99 | 3.35 | 1.90 | (6.93 | ) | 1.07 | ||||||||||||||||||||||||||||||||||
0.34 | 4.01 | 3.40 | 1.99 | (6.77 | ) | 1.23 | 3.02 | 3.99 | 3.36 | 1.96 | (6.77 | ) | 1.17 | ||||||||||||||||||||||||||||||||||
— | (0.07 | ) | (0.05 | ) | (0.16 | ) | (0.16 | ) | (0.13 | ) | (0.09 | ) | (0.06 | ) | — | (0.12 | ) | (0.09 | ) | (0.09 | ) | ||||||||||||||||||||||||||
— | — | — | — | (2.47 | ) | (1.56 | ) | (0.89 | ) | — | — | — | (2.47 | ) | (1.56 | ) | |||||||||||||||||||||||||||||||
— | (0.07 | ) | (0.05 | ) | (0.16 | ) | (2.63 | ) | (1.69 | ) | (0.98 | ) | (0.06 | ) | — | (0.12 | ) | (2.56 | ) | (1.65 | ) | ||||||||||||||||||||||||||
$ | 14.37 | $ | 21.34 | $ | 17.40 | $ | 14.05 | $ | 12.22 | $ | 21.62 | $ | 22.08 | $ | 21.26 | $ | 17.33 | $ | 13.97 | $ | 12.13 | $ | 21.46 | ||||||||||||||||||||||||
2.42 | % | 23.08 | %C | 24.21 | % | 16.59 | % | (35.04 | )% | 5.83 | % | 15.56 | % | 23.07 | %C | 24.05 | % | 16.41 | % | (35.19 | )% | 5.55 | % | ||||||||||||||||||||||||
$ | 1 | $ | 1,211,430 | $ | 911,737 | $ | 719,239 | $ | 699,670 | $ | 1,316,188 | $ | 1,333,814 | $ | 38,639 | $ | 32,295 | $ | 28,333 | $ | 33,479 | $ | 69,112 | ||||||||||||||||||||||||
1.11 | %D | 1.15 | % | 1.18 | % | 1.15 | % | 1.06 | % | 1.05 | % | 1.06 | % | 1.29 | % | 1.32 | % | 1.31 | % | 1.31 | % | 1.32 | % | ||||||||||||||||||||||||
1.11 | %D | 1.15 | % | 1.18 | % | 1.15 | % | 1.06 | % | 1.05 | % | 1.06 | % | 1.29 | % | 1.32 | % | 1.34 | % | 1.31 | % | 1.32 | % | ||||||||||||||||||||||||
0.03 | %D | 0.18 | % | 0.17 | % | 0.59 | % | 1.12 | % | 0.70 | % | 0.59 | % | 0.05 | % | 0.03 | % | 0.48 | % | 0.86 | % | 0.43 | % | ||||||||||||||||||||||||
0.03 | %D | 0.18 | % | 0.17 | % | 0.59 | % | 1.12 | % | 0.70 | % | 0.59 | % | 0.05 | % | 0.03 | % | 0.44 | % | 0.86 | % | 0.43 | % | ||||||||||||||||||||||||
61 | %E | 26 | %C | 59 | % | 61 | % | 62 | % | 52 | % | 48 | % | 26 | %C | 59 | % | 61 | % | 62 | % | 52 | % |
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American Beacon Small Cap Value Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
Advisor Class | Retirement Class | AMR Class | ||||||||||||||||||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
April 30, | May 01 to October | April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||
2006 | 2011G | 2010 | 31, 2009 | 2011G | 2010 | 2009 | 2008 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 19.94 | $ | 17.23 | $ | 13.95 | $ | 11.58 | $ | 17.76 | $ | 14.32 | $ | 12.48 | $ | 22.05 | ||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.07 | 0.01 | 0.04 | (0.02 | ) | 0.02 | 0.18 | 0.11 | 0.33 | |||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 2.88 | 3.93 | 3.28 | 2.39 | 4.14 | 3.38 | 1.97 | (7.15 | ) | |||||||||||||||||||||||
Total income (loss) from investment operations | 2.95 | 3.94 | 3.32 | 2.37 | 4.16 | 3.56 | 2.08 | (6.82 | ) | |||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.06 | ) | (0.05 | ) | (0.04 | ) | — | (0.10 | ) | (0.12 | ) | (0.24 | ) | (0.28 | ) | |||||||||||||||||
Distributions from net realized gains on securities | (0.89 | ) | — | — | — | — | — | — | (2.47 | ) | ||||||||||||||||||||||
Total distributions | (0.95 | ) | (0.05 | ) | (0.04 | ) | — | (0.10 | ) | (0.12 | ) | (0.24 | ) | (2.75 | ) | |||||||||||||||||
Net asset value, end of period | $ | 21.94 | $ | 21.12 | $ | 17.23 | $ | 13.95 | $ | 21.82 | $ | 17.76 | $ | 14.32 | $ | 12.48 | ||||||||||||||||
Total return A,B | 15.23 | % | 22.88 | %C | 23.82 | % | 20.47 | %C | 23.45 | %C | 25.00 | % | 17.30 | % | (34.71 | )% | ||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 70,602 | $ | 769 | $ | 360 | $ | 1 | $ | 467,868 | $ | 320,715 | $ | 271,066 | $ | 209,927 | ||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||
Expenses, net of waivers | 1.34 | % | 1.55 | % | 1.54 | % | 1.53 | %D | 0.54 | % | 0.57 | % | 0.59 | % | 0.56 | % | ||||||||||||||||
Expenses before waivers | 1.34 | % | 1.55 | % | 1.54 | % | 1.53 | %D | 0.54 | % | 0.57 | % | 0.59 | % | 0.56 | % | ||||||||||||||||
Net investment income (loss), net of waivers | 0.31 | % | (0.27 | )% | (0.20 | )% | (0.28) | %D | 0.78 | % | 0.76 | % | 1.11 | % | 1.62 | % | ||||||||||||||||
Net investment income (loss), before waivers | 0.31 | % | (0.27 | )% | (0.20 | )% | (0.28) | %D | 0.78 | % | 0.76 | % | 1.11 | % | 1.62 | % | ||||||||||||||||
Portfolio turnover rate | 48 | % | 26 | %C | 59 | % | 61 | %E | 26 | %C | 59 | % | 61 | % | 62 | % |
A | 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. | |
B | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
C | Not annualized. | |
D | Annualized. | |
E | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. | |
F | Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010. | |
G | On November 30, 2010 Metropolitan West Capital Management, LLC was terminated and ceased managing assets of the Small Cap Value Fund. |
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A Class | C Class | |||||||||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||||||
April 30, | May 17 to October | April 30, | September 01 to | |||||||||||||||||||
2007 | 2006 | 2011G | 31, 2010 | 2011G | October 31, 2010 | |||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||
$ | 22.48 | $ | 20.38 | $ | 17.39 | $ | 17.33 | $ | 17.37 | $ | 15.62 | |||||||||||
0.30 | 0.27 | 0.05 | 0.00 | 0.01 | (0.01 | ) | ||||||||||||||||
1.08 | 2.91 | 3.95 | 0.06 | 3.90 | 1.76 | |||||||||||||||||
1.38 | 3.18 | 4.00 | 0.06 | 3.91 | 1.75 | |||||||||||||||||
(0.25 | ) | (0.19 | ) | (0.06 | ) | — | (0.03 | ) | — | |||||||||||||
(1.56 | ) | (0.89 | ) | — | — | — | — | |||||||||||||||
(1.81 | ) | (1.08 | ) | (0.06 | ) | — | (0.03 | ) | — | |||||||||||||
$ | 22.05 | $ | 22.48 | $ | 21.33 | $ | 17.39 | $ | 21.25 | $ | 17.37 | |||||||||||
6.39 | % | 16.12 | % | 23.03 | %C | 0.35 | %C | 22.57 | %C | 11.20 | %C | |||||||||||
$ | 411,406 | $ | 412,857 | $ | 762 | $ | 18 | $ | 300 | $ | 6 | |||||||||||
0.54 | % | 0.55 | % | 1.27 | % | 1.28 | %D | 2.00 | % | 2.10 | %D | |||||||||||
0.54 | % | 0.55 | % | 1.27 | % | 1.28 | %D | 2.00 | % | 2.69 | %D | |||||||||||
1.21 | % | 1.10 | % | (0.25 | )% | 0.01 | %D | (1.00 | )% | (1.28) | %D | |||||||||||
1.21 | % | 1.10 | % | (0.25 | )% | 0.01 | %D | (1.01 | )% | (1.86) | %D | |||||||||||
52 | % | 48 | % | 26 | %C | 59 | %F | 26 | %C | 59 | %F |
27
Table of Contents
Disclosure Regarding the Board of Trustees’ Approval of Investment Advisory Agreements
(Unaudited)
(Unaudited)
The Board met on March 9, 2011 to consider a revised fee schedule to the Hotchkis & Wiley Capital Management, LLC (“HWCM”) investment advisory agreement (“Agreement”) on behalf of the American Beacon Balanced and Large Cap Value Funds. HWCM sought the approval of the revised fee schedule for the Funds as a result of increased allocation of assets to HWCM due to the termination of Metropolitan West Capital Management, LLC as a subadvisor to the Funds. Prior to the meeting, the Board requested and reviewed information provided by HWCM in connection with its consideration of the revised fee schedule. A discussion of the factors relating to the Board’s approval of the revised fee schedule follows.
Nature, extent and quality of the services to be provided by HWCM. The Board considered various factors in approving the revised fee schedule, including the fact that it had considered the renewal of the HWCM Agreement at its May 2010 meeting. At that meeting, the Board received detailed information regarding HWCM, including information regarding its business, staffing, financial condition, trading activities, insurance coverage and compliance matters. The Board considered HWCM’s representation that none of its responses provided in connection with the May 2010 meeting would be materially different in light of the revised fee schedule. In addition, the Board considered HWCM’s representation that it will continue to provide the same portfolio management services that it currently provides to the Funds. Based on this information, the Board concluded that the nature, extent and quality of the advisory services provided by HWCM supported a decision to approve the revised fee schedule.
Comparisons of the amounts to be paid under the Revised Fee Schedule with those under contracts between HWCM and its other clients and the Funds’ Other Subadvisors. In evaluating the proposed fee schedule, the Board reviewed the proposed revisions to the breakpoints contained in the fee schedule to the HWCM Agreement, which effectively increase the fee rate paid by the Funds on any new assets managed by HWCM above $1.45 billion. The Board considered the Manager’s representation that it was seeking the Board’s approval of the revised fee schedule in light of the capacity constraints on HWCM’s strategy and the need for additional resources to manage increased Fund assets allocated to HWCM following the termination of another subadvisor to the Funds. The Board also noted the Manager’s representation that HWCM has agreed not to increase its fee on assets it managed prior to the reallocation of assets. The Board further noted the Manager’s representation that notwithstanding the increase in HWCM’s fee rate applicable to any new assets above $1.45 billion, HWCM’s fee schedule will be as low as, or lower, than any current subadvisor for the Funds and lower than the fee rate that was paid to the terminated subadvisor. In addition, the Board considered HWCM’s representation that the existing and proposed fee schedules for the Funds are lower than the fee schedules for its other clients and HWCM’s standard fee schedule. The Board also considered the Manager’s representation that it believes that it would be beneficial for the Funds to have increased exposure to HWCM’s portfolio in light of its long-term record of superior performance. This information assisted the Board in concluding that the fee rate payable by the Funds pursuant to the revised fee schedule to the HWCM Agreement appeared to be within a reasonable range for the services provided to the Funds, in light of all the factors considered.
Performance of HWCM. In connection with the Board’s consideration of the revised fee schedule, the Board considered the investment performance of HWCM on behalf of the equity portion of the Balanced Fund and HWCM’s portion of the Large Cap Value Fund, as compared to the performance of the Hotchkis Large Cap Diversified Composite (“Hotchkis Composite”) and the Russell 1000 Value Index (“Russell Index”). The Board noted that the Balanced Fund outperformed the Hotchkis Composite and the Russell Index for the one- and three-year periods ended December 31, 2010, matched the Composite’s performance for the five-year period and underperformed the Rusell Index for the five-year period. The Board also considered that the Large Cap Value Fund outperformed the Hotchkis Composite for the three- and five-year periods ended December 31, 2010 and matched the Composite for the one-year period, while also outperforming the Russell Index for the one- and three-year periods and underperforming for the five-year period. In light of all the information provided, the Board concluded that the historical investment performance record of HWCM supported the approval of the revised fee schedule to the HWCM Agreement on behalf of the Funds.
Extent to which economies of scale would be realized as the Fund grows and whether fee levels reflect these economies of scale for the benefit of Fund investors. The Board considered that the proposed fee schedule will compensate HWCM for additional resources that are needed to manage an increased allocation of Fund assets. In addition, the Board considered that notwithstanding the fact that the revised fee schedule increases the fee rate paid to HWCM on any new assets above $1.45 billion, the revised fee rate contains breakpoints for the benefit of Fund investors and that the overall fee rate paid to HWCM is as low as, or lower, than the fee rate paid to any other current subadvisor for the Funds and lower than the fee rate that was paid to the terminated subadvisor. The Board also noted that the fees paid to HWCM are passed through the Manager by the Fund and that the Manager would not benefit economically from the proposed fee schedule. Based on the foregoing information, the Board concluded that the breakpoints under the revised fee schedule continue to reflect economies of scale associated with the services provided by HWCM to the Funds.
Costs of the services to be provided and profits to be realized by HWCM and its affiliates from the relationship with the Funds. The Board noted the arm’s-length nature of the relationship between the Manager and HWCM with respect to the negotiation of the advisory fee rate on behalf the Funds and, as a result, did not consider the costs of the services to be provided and profits to be realized by HWCM from its relationship with the Funds.
Benefits to be derived by HWCM from the relationship with the Funds. The Board considered that it reviewed any potential fall-out benefits that may accrue to HWCM as a result of its services to the Funds at the May 2010 meeting and that HWCM did not provide updated information with respect to fall out benefits at the March 2011 meeting. Based on the foregoing information, the Board concluded that “fall-out” benefits that may accrue to HWCM were not a material factor in approving the revised fee schedule.
Board’s Conclusion. Based on the various considerations described above, the Board, including a majority of Trustees who are not parties to the HWCM Agreement or “interested persons” of any such party, as that term is defined in the 1940 Act, concluded that the proposed advisory fee rate is reasonable and that the approval of the revised fee schedule is in the best interests of the Balanced Fund and the Large Cap Value Fund and their shareholders and, as a result, approved the revised fee schedule with respect to the Funds.
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Delivery of Documents
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shareholder reports and summary prospectus on-line. Sign up at
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shareholder reports and summary prospectus on-line. Sign up at
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If you invest in the Fund through a financial institution, you may be able to receive the Fund’s regulatory mailings, such as the Summary Prospectus, Annual Report and Semi-Annual Report, by email. If you are interest 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:
7 | 8 | |
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®, Retirement, 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 twenty 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 Financial Data Services | Public Accounting | Foreside Fund Services, LLC | |||
Boston, Massachusetts | Kansas City, Missouri | Firm Ernst & Young LLP | Portland, Maine | |||
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 or Summary Prospectus.
American Beacon Funds and American Beacon Small Cap Value Fund are service marks of American Beacon Advisors, Inc.
SAR 04/11
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l V I S I O N l E X P E R I E N C E Semi-Annual Report April 30, 2011 EMERGING MARKETS FUND INTERNATIONAL EQUITY FUND |
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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
1 | ||||
2-8 | ||||
Schedule of Investments: | ||||
10 | ||||
16 | ||||
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, 2011 |
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Fellow Shareholders,
Over the past six months, the world’s equity markets have generally rallied on, despite concerns for the pace of the global economic recovery, reoccurrences of sovereign debt worries, geopolitical unrest, rising commodity inflation and the potential impact of Japan’s recent earthquake. Though challenging, these factors were offset by increasing reports of strength in corporate earnings and the persistence of economic recovery in the U.S. and growth in China.
The performance of our international funds reflects this strength as well. It also reflects the American Beacon investment philosophy: that portfolios managed with a longer-term perspective tend to be better positioned for riding out the inevitable waves of economic and geopolitical upheaval.
For the six-month period ended April 30, 2011:
>>American Beacon Emerging Markets Fund (Institutional Class) rose 7.50%
>>American Beacon International Equity Fund (Institutional Class) gained 13.58%
While day-to-day volatility continues to influence the world’s equity and credit markets, American Beacon remains focused on seeking opportunities and meeting market challenges to deliver the type of consistency in performance and service our shareholders value.
Our process is summarized as: Oversight 360. It’s an ongoing commitment to cast a watchful and analytical eye over all the factors that influence our fellow shareholders’ investments.
Thank you for your continued investment in the American Beacon Funds. To obtain further details about the growing number of investment opportunities now available within the American Beacon Funds family or to access your account information, please visit our website at www.americanbeaconfunds.com.
Best Regards, | ||||
![]() | ||||
Gene L. Needles, Jr. | ||||
President American Beacon Funds |
1
Table of Contents
Emerging Markets Overview
April 30, 2011 (Unaudited)
April 30, 2011 (Unaudited)
For the six months ended April 30, 2011, the Fund’s benchmark, the MSCI Emerging Markets Index, produced a return of 9.74%.
The period began with increased volatility, as the risk of inflation—driven by higher food and oil prices—and tightening monetary policy caught the attention of investors. By the end of the calendar year 2010, food commodities had surged 30% and oil reached $90 a barrel.
Oil prices pushed 20% higher over the course of the first quarter of 2011 as a revolutionary fervor swept across the Middle East and Northern Africa. While rising energy prices tended to hamper importers, higher prices generally helped exporting markets such as Russia and Brazil. For example, with energy companies comprising more than half of the MSCI Russia Index, the country’s stock market was a standout performer during the beginning two months of the period.
In response to these rising prices, China—a net importer of oil—formally tightened interest rates by 50 basis points (0.50%) to subdue the inflationary impact. For its part, India aggressively used monetary policy to address the 10% rise in its consumer price index.
Financial stocks were weak in most markets in anticipation of slower loan growth in 2011. The exceptions to this could be found among the more mature Asian markets—Taiwan and South Korea—where inflation remained under control. South Africa also proved to be an exception, as its prices remained in check. Mexico was able to deliver solid results, thanks to improving sentiment regarding the economic health of the U.S., its dominant trading partner. Emerging Europe, however, pulled back on news of Ireland’s debt problems and the need for additional sovereign debt support.
After significant underperformance by emerging markets in January and February, the performance gap between this asset class and the developed markets narrowed somewhat in March. Supporting this move were the sharp spike in oil prices, still-elevated commodity prices, and the correspondingly weaker dollar.
Still, over the full six-month period, emerging markets experienced four-plus months of underperformance relative to the developed markets. This brought valuations back to a modest discount to their historical averages.
April proved to be another good month for the global stock markets, with investors remaining resilient in the face of continuing macro-level turbulence, high oil and gas prices, and other rising commodity prices. Supporting the markets were a slight easing of tensions in the Middle East and Northern Africa, strong earnings reports from the U.S. and elsewhere, and confirmation from the Federal Reserve that its “dovish” monetary policy will continue well beyond the June 30, 2011 end-date for its second round of quantitative easing.
2
Table of Contents
Performance Overview
American Beacon Emerging Markets FundSM
April 30, 2011 (Unaudited)
American Beacon Emerging Markets FundSM
April 30, 2011 (Unaudited)
The Institutional Class of the Emerging Markets Fund returned 7.50% for the six months ended April 30, 2011. The Fund underperformed the MSCI Emerging Markets Index (“Index”) return of 9.74% and the Lipper Emerging Markets Funds Index return of 8.43% for the period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/11 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,7) | 7.50 | % | 18.77 | % | 8.51 | % | 16.11 | % | ||||||||
Y Class (1,2,7) | 7.50 | % | 18.69 | % | 8.48 | % | 16.09 | % | ||||||||
Investor Class(1,3,7) | 7.23 | % | 18.23 | % | 8.12 | % | 15.79 | % | ||||||||
A Class with sales charge (1,4,7) | 1.17 | % | 11.39 | % | 6.83 | % | 15.11 | % | ||||||||
A Class without sales charge (1,4,7) | 7.33 | % | 18.18 | % | 8.11 | % | 15.79 | % | ||||||||
C Class with sales charges (1,5,7) | 5.87 | % | 16.59 | % | 8.00 | % | 15.73 | % | ||||||||
C Class without sales charge (1,5,7) | 6.87 | % | 17.59 | % | 8.00 | % | 15.73 | % | ||||||||
AMR Class(1,7) | 7.45 | % | 18.74 | % | 8.72 | % | 16.36 | % | ||||||||
MSCI Emg Mkts Index(6) | 9.74 | % | 20.67 | % | 9.85 | % | 16.58 | % | ||||||||
Lipper Emg Mkts Funds Index(6) | 8.43 | % | 20.88 | % | 8.15 | % | 15.92 | % |
* | 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 Institutional Class has been waived since 2010. Performance prior to waiving fees was lower than the actual returns shown. | |
2. | Fund performance for the one-year, five-year, and ten-year periods represent the total returns achieved by the Institutional Class from 4/30/01 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 4/30/01. A portion of the fees charged to the Y Class has been waived since 2010. Performance prior to waiving fees was lower than the actual returns shown. | |
3. | Fund performance for the ten-year period represents the total returns achieved by the Institutional Class from 4/30/01 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 4/30/01. A portion of the fees charged to the Investor Class of the Fund was waived in 2004 to 2005, and since 2010 and recouped in 2006. Performance prior to fee waivers and fee recoupment is different than the actual returns shown. | |
4. | Fund performance for the one-year, five-year, and ten-year periods represents total returns achieved by the Institutional Class from 4/30/01 through 10/1/02, the Investor Class from 10/1/02 up to 5/17/10, the inception date of the A Class, and the returns of the A Class since its inception. Expenses of the A Class are higher than those of the Institutional and Investor Classes. As a result, total returns shown may be higher than they would have been had the A Class been in existence since 4/30/01. A portion of the fees charged to the A Class has been waived since 2010. Performance prior to waiving fees was lower than the actual returns shown. The maximum sales charge for A Class is 5.75%. | |
5. | Fund performance for the one-year, five-year, and ten-year periods represents total returns achieved by the Institutional Class from 4/30/01 through 10/1/02, the Investor Class from 10/1/02 up to 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the C Class are higher than those of the Institutional and Investor Classes. As a result, total returns shown may be higher than they would have been had the C Class been in existence since 4/30/01. A portion of the fees charged to the C Class has been waived since 2010. Performance prior to waiving fees was lower than the actual returns shown. The maximum contingent deferred sales charge for C Class is 1.00% for shares redeemed within one year of the date of purchase. | |
6. | 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. | |
7. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, A, C, and AMR Class shares was 1.59%, 1.83%, 1.87%, 2.27%, 3.42%, and 1.35%, 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 and China led to the relative underperformance, despite positive selections in Brazil. In South Korea, under-performance stemmed from investments in Korea Electric Power Corp. (down 9.2%) and Grand Korea Leisure Co. Ltd. (down 20.1%). Chinese investments Chaoda Modern Agriculture Holdings Ltd. (down 16.5% during the period the stock was held by the Fund) and Sinotrans Ltd. (down 9.3%) also detracted for the period. Positive contributors in Brazil, including Vivo Participacoes S.A. (up 58.9%) and Redecard S.A. (up 16.2%), added value for the period.
Relative contribution from country allocation was positive for the six-month period, due to overweighting South Korea and the Czech Republic
3
Table of Contents
Performance Overview
American Beacon Emerging Markets FundSM
April 30, 2011 (Unaudited)
American Beacon Emerging Markets FundSM
April 30, 2011 (Unaudited)
(up 27.1% and 24.8%, respectively). Underweighting Russia (up 29.7%) detracted from relative performance during the period.
The Fund’s basic philosophy remains focused on investing in attractively valued companies with above-average earnings growth expectations.
Top Ten Holdings
% of | ||||
Net Assets | ||||
Petroleo Brasileiro S.A. | 3.1 | % | ||
Hyundai Motor Co. | 1.8 | % | ||
China Mobile Ltd. | 1.7 | % | ||
Standard Bank Group Ltd/South Africa | 1.7 | % | ||
KB Financial Group, Inc. | 1.6 | % | ||
Gazprom OAO | 1.5 | % | ||
POSCO | 1.5 | % | ||
Samsung Electronics Co. Ltd. | 1.5 | % | ||
PetroChina Co. Ltd. | 1.3 | % | ||
Telefonica O2 Czech Republic AS | 1.7 | % |
Sector Allocation
% of | ||||
Equities | ||||
Financials | 22.9 | % | ||
Telecommunication Services | 13.1 | % | ||
Consumer Staples | 11.4 | % | ||
Information Technology | 10.5 | % | ||
Materials | 9.9 | % | ||
Energy | 9.8 | % | ||
Consumer Discretionary | 8.7 | % | ||
Utilities | 6.3 | % | ||
Industrials | 5.9 | % | ||
Health Care | 1.5 | % |
Country Allocation
![(PIE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-11-064403/d83264d8327703.gif)
Country Allocation
% of | ||||
Equities | ||||
South Korea | 18.5 | % | ||
Hong Kong/China | 18.1 | % | ||
Brazil | 16.4 | % | ||
South Africa | 6.8 | % | ||
India | 6.2 | % | ||
Taiwan | 6.0 | % | ||
Mexico | 4.5 | % | ||
Russia | 4.2 | % | ||
Turkey | 2.5 | % | ||
Czech Republic | 2.4 | % | ||
Indonesia | 2.2 | % | ||
Philippines | 2.1 | % | ||
Malaysia | 2.0 | % | ||
Thailand | 1.3 | % | ||
Poland | 1.3 | % | ||
Austria | 1.2 | % | ||
Hungary | 1.1 | % | ||
United States | 0.9 | % | ||
Egypt | 0.5 | % | ||
Peru | 0.4 | % | ||
Argentina | 0.4 | % | ||
Cayman Islands | 0.3 | % | ||
Singapore | 0.2 | % | ||
Lebanon | 0.2 | % | ||
United Kingdom | 0.1 | % | ||
Chile | 0.1 | % | ||
Israel | 0.1 | % |
4
Table of Contents
Fund Expenses
American Beacon Emerging Markets FundSM
April 30, 2011 (Unaudited)
American Beacon Emerging Markets FundSM
April 30, 2011 (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, 2010 through April 30, 2011.
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 $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 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 $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 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 | |||||||||||
Account | Account | Expenses Paid | ||||||||||
Value | Value | During Period* | ||||||||||
11/1/10 | 4/30/11 | 11/1/10-4/30/11 | ||||||||||
Institutional Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,075.02 | $ | 6.95 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,018.10 | $ | 6.76 | ||||||
Y Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,075.02 | $ | 7.45 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,017.62 | $ | 7.24 | ||||||
Investor Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,072.25 | $ | 9.19 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,015.93 | $ | 8.94 | ||||||
AMR Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,074.51 | $ | 6.70 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,018.34 | $ | 6.51 | ||||||
A Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,073.34 | $ | 9.01 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,016.11 | $ | 8.76 | ||||||
C Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,068.72 | $ | 13.04 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,012.18 | $ | 12.69 |
* | Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 1.35%, 1.45%, 1.79%, 1.30%, 1.75% and 2.54% for the Institutional, Y, Investor, AMR, A and C 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% return before expenses. |
5
Table of Contents
International Equity Market Overview
April 30, 2011 (Unaudited)
April 30, 2011 (Unaudited)
For the six months ended April 30, 2011, the MSCI EAFE Index gained 12.71%. The international financial markets held firm during the period as economic and corporate earnings improvements served to offset Europe’s sovereign debt worries, escalating geopolitical turmoil in the Middle East and Northern Africa and a devastating natural disaster in Japan.
International equities also benefited from continued fiscal policy support in the developed world. The U.S. led the way when its Federal Reserve Board ushered in another round of quantitative easing and the Obama Administration extended the Bush-era tax cuts in late 2010.
In Europe, where fiscal deficits continue to plague the peripheral nations, Ireland and Portugal were forced to accept bailouts during the period and the European Central Bank (ECB) approved the creation of a €700 billion rescue facility to address future sovereign funding shortfalls. The ECB’s extraordinary interventions indicated its commitment to preserving the stability of the monetary union. But its decision to raise interest rates toward the end of the period also signaled vigilance on price stability, the bank’s primary mandate. The European rate hike was also notable for its divergence from the ultra-loose monetary policy in the U.S.
Meanwhile, in other parts of the world—particularly the emerging markets—the fight against inflation continued. Over 20 countries raised their official interest rates during the period to forestall asset bubbles and to diminish the impact of growing inflationary pressures.
Rising commodity prices fueled the global inflationary pressures, with oil surpassing $100/barrel for the first time since 2008 and agricultural commodities achieving their highest prices on record. Geopolitical instability helped exacerbate pricing pressures, with the eruption of civil conflict in the Middle East and Northern Africa at the beginning of 2011 threatening global oil supplies. Growing concerns about the creditworthiness of advanced economies eroded confidence in fiat currencies, pressuring the U.S. dollar and sending the price of precious metals to new heights. Finally, genuine economic growth and demand increases also helped support commodity prices.
For the most part, international economic trends remained positive, led by emerging markets, where organic demand growth continued to surge despite more restrictive monetary policy. Growth was less consistent in the developed world, where the ongoing recovery was allayed by austerity programs and ongoing weakness in labor and real estate markets. Nonetheless, the broader economic trend remained positive, which—in combination with a corporate profit cycle that is shaping up to be one of the strongest in market history—helped equities reach new post-crisis heights during the six-month period.
6
Table of Contents
Performance Overview
American Beacon International Equity FundSM
April 30, 2011 (Unaudited)
American Beacon International Equity FundSM
April 30, 2011 (Unaudited)
The Institutional Class of the International Equity Fund returned 13.58% for the six months ended April 30, 2011. The Fund outperformed the MSCI EAFE Index (“Index”) return of 12.71% and the Lipper International Funds Index return of 12.72% for the period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/11 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,8) | 13.58 | % | 20.22 | % | 2.24 | % | 6.67 | % | ||||||||
Y Class (1,2,8) | 13.49 | % | 19.99 | % | 2.20 | % | 6.65 | % | ||||||||
Investor Class(1,8) | 13.35 | % | 19.69 | % | 1.92 | % | 6.42 | % | ||||||||
Advisor Class (1,3,8) | 13.32 | % | 19.53 | % | 1.65 | % | 6.18 | % | ||||||||
Retirement Class (1,4,8) | 13.28 | % | 19.35 | % | 1.61 | % | 6.16 | % | ||||||||
A Class with sales charge (1,5,8) | 6.80 | % | 12.62 | % | .69 | % | 5.77 | % | ||||||||
A Class without sales charge (1,5,8) | 13.31 | % | 19.50 | % | 1.89 | % | 6.40 | % | ||||||||
C Class with sales charge (1,6,8) | 11.83 | % | 17.78 | % | 1.77 | % | 6.33 | % | ||||||||
C Class without sales charge (1,6,8) | 12.83 | % | 18.78 | % | 1.77 | % | 6.33 | % | ||||||||
AMR Class(1,8) | 13.74 | % | 20.49 | % | 2.49 | % | 6.94 | % | ||||||||
Lipper Int’l. Funds Index(7) | 12.72 | % | 19.89 | % | 2.85 | % | 6.42 | % | ||||||||
MSCI EAFE Index (7) | 12.71 | % | 19.18 | % | 1.54 | % | 5.29 | % |
* | 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 five year and ten-year periods represents the total returns achieved by the Institutional Class from 4/30/01 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 4/30/01 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 4/30/01. 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 4/30/01 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 4/30/01. | |
5. | Fund performance for the one-year, five-year, and ten-year periods represents the total returns achieved by the Investor Class from 4/30/01 up to 5/17/10, the inception date of the A Class, and the returns of the A Class since its inception. Expenses of the A 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 A Class been in existence since 4/30/01. A portion of the fees charged to the A Class was waived since 2011. Performance prior to waiving fees was lower than the actual returns shown since 2011. The maximum sales charge for A Class is 5.75%. | |
6. | Fund performance for the one-year, five-year, and ten-year periods represents the total returns achieved by the Investor Class from 4/30/01 up to 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the C 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 C Class been in existence since 4/30/01. A portion of the fees charged to the C Class was waived since 2011. Performance prior to waiving fees was lower than the actual returns shown since 2011. The maximum contingent deferred sales charge for C Class is 1.00% for shares redeemed within one year of the date of purchase. | |
7. | 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. | |
8. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, Retirement, A, C, and AMR Class shares was 0.72%, 0.82%, 1.08%, 1.27%, 1.67%, 1.27%, 2.17%, and 0.47%, 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 0.87% over the six-month period due to stock selection and country allocation.
Stock selections within Japan, the United Kingdom, and Sweden contributed to the Fund’s relative outperformance. In Japan, the Fund added value through investments in KDDI Corp. (up 24.8%), Daito Trust Construction Co. Ltd. (up 35.1%), and JGC Corp. (up 30.9%). Investments in Resolution Ltd. (up 60.7% for the period the stock was held by the Fund), and Rexam plc (up 28.3%) in the United Kingdom and Telefonaktiebolaget LM Ericsson (up 43.1%) in Sweden also benefited relative performance for the period. Stock selections in Germany detracted from relative
7
Table of Contents
Performance Overview
American Beacon International Equity FundSM
April 30, 2011 (Unaudited)
American Beacon International Equity FundSM
April 30, 2011 (Unaudited)
performance, led by Allianz SE (down 12.1% during the period the stock was held by the Fund).
Country allocation also contributed positively to relative performance, specifically underweighting Japan (up 4.8%) and investing in South Korea (up 27.1%), though the Fund lost value as the result of underweighting Australia (up 17.9%) during 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.
Top Ten Holdings
% of | ||||
Net Assets | ||||
Sanofi-Aventis S.A. | 2.4 | % | ||
Novartis AG | 2.2 | % | ||
Siemens AG | 1.9 | % | ||
UBS AG | 1.8 | % | ||
HSBC Holdings plc | 1.7 | % | ||
Total S.A. | 1.6 | % | ||
Royal Dutch Shell plc | 1.5 | % | ||
DBS Group Holdings Ltd. | 1.5 | % | ||
GlaxoSmithKline plc | 1.5 | % | ||
Roche Holding Ltd. | 1.6 | % |
Sector Allocation
% of | ||||
Equities* | ||||
Financials | 23.1 | % | ||
Industrials | 15.1 | % | ||
Consumer Discretionary | 12.3 | % | ||
Health Care | 9.9 | % | ||
Materials | 9.6 | % | ||
Energy | 8.2 | % | ||
Consumer Staples | 6.7 | % | ||
Telecommunication Services | 6.1 | % | ||
Information Technology | 6.0 | % | ||
Utilities | 2.9 | % | ||
Private Placement | 0.1 | % |
Regional Allocation*
![(PIE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-11-064403/d83264d8327704.gif)
* Shown as a percentage of equities
Region | ||||
Europe | 73.4 | % | ||
Asia | 25.0 | % | ||
North America | 1.3 | % | ||
Middle East | 0.3 | % |
8
Table of Contents
Fund Expenses
American Beacon International Equity FundSM
April 30, 2011 (Unaudited)
American Beacon International Equity FundSM
April 30, 2011 (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, 2010 through April 30, 2011.
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 $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 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 $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 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 | |||||||||||
Account | Account | Expenses Paid | ||||||||||
Value | Value | During Period* | ||||||||||
11/1/10 | 4/30/11 | 11/1/10-4/30/11 | ||||||||||
Institutional Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,135.85 | $ | 3.77 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,021.26 | $ | 3.57 | ||||||
Y Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,134.88 | $ | 4.35 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,020.72 | $ | 4.12 | ||||||
Investor Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,133.49 | $ | 5.67 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,019.48 | $ | 5.37 | ||||||
Advisor Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,133.18 | $ | 6.51 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,018.69 | $ | 6.16 | ||||||
Retirement Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,132.80 | $ | 6.76 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,018.46 | $ | 6.40 | ||||||
AMR Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,137.39 | $ | 2.44 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,022.51 | $ | 2.31 | ||||||
A Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,133.08 | $ | 6.34 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,018.85 | $ | 6.00 | ||||||
C Class | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,128.28 | $ | 10.61 | ||||||
Hypothetical ** | $ | 1,000.00 | $ | 1,014.82 | $ | 10.05 |
* | Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.71%, 0.82%, 1.07%, 1.23%, 1.28%, 0.46%, 1.20% and 2.01% for the Institutional, Y, Investor, Advisor, Retirement, AMR, A and C 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% return before expenses. |
9
Table of Contents
American Beacon Emerging Markets Fund SM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
ARGENTINA - 0.34% | ||||||||
COMMON STOCKS - 0.34% (Cost $629) | ||||||||
Banco Macro S.A., ADRA | 2,592 | 96 | ||||||
Nortel Inversora S.A., ADRA | 18,400 | 480 | ||||||
Total Argentina | 576 | |||||||
AUSTRIA - 1.14% | ||||||||
COMMON STOCKS - 1.14% (Cost $1,750) | ||||||||
Erste Group Bank AG | 38,472 | 1,944 | ||||||
BRAZIL - 15.72% | ||||||||
COMMON STOCKS - 13.83% (Cost $20,231) | ||||||||
Banco do Brasil S.A. | 72,500 | 1,336 | ||||||
Banco Santander Brasil S.A./Brazil, ADRA B | 176,970 | 2,055 | ||||||
BM&FBovespa S.A. | 50,900 | 382 | ||||||
BRF — Brasil Foods S.A. | 32,010 | 642 | ||||||
Centrais Eletricas Brasileiras S.A., ADRA | 100,100 | 1,484 | ||||||
Centrais Eletricas Brasileiras S.A.B | 15,966 | 232 | ||||||
Cia de Bebidas das Americas, ADRA | 19,280 | 628 | ||||||
Cia de Saneamento de Minas Gerais-COPASAB | 21,200 | 387 | ||||||
Cielo S.A. | 33,700 | 312 | ||||||
Embraer S.A., ADRA | 9,280 | 301 | ||||||
Fibria Celulose S.A., ADRA | 25,500 | 412 | ||||||
Gerdau S.A., ADRA | 38,950 | 471 | ||||||
Grendene S.A. | 31,840 | 190 | ||||||
Hypermarcas S.A. | 13,400 | 180 | ||||||
Inpar S.A.B | 514,200 | 974 | ||||||
Itau Unibanco Holding S.A., ADRA | 49,279 | 1,170 | ||||||
JBS S.A. | 171,100 | 584 | ||||||
Magnesita Refratarios S.A.B C | 53,700 | 285 | ||||||
Marfrig Alimentos S.A. | 166,000 | 1,709 | ||||||
MRV Engenharia e Participacoes S.A. | 20,000 | 173 | ||||||
PDG Realty S.A. Empreendimentos e Participacoes | 60,000 | 352 | ||||||
Petroleo Brasileiro S.A., A Shares, ADRA | 101,479 | 3,387 | ||||||
Petroleo Brasileiro S.A., ADRA | 48,480 | 1,810 | ||||||
Porto Seguro S.A. | 5,360 | 90 | ||||||
Redecard S.A. | 126,900 | 1,835 | ||||||
Vale S.A., ADRA | 23,380 | 780 | ||||||
Vivo Participacoes S.A., ADRA | 31,700 | 1,325 | ||||||
Total Common Stocks | 23,486 | |||||||
PREFERRED STOCKS - 1.89% (Cost $1,812) | ||||||||
Cia de Tecidos do Norte de Minas — Coteminas | 40,262 | 116 | ||||||
Cia Energetica de Minas Gerais | 20,803 | 426 | ||||||
Cia Energetica do Ceara | 31,800 | 698 | ||||||
Gerdau S.A. | 5,800 | 70 | ||||||
Itau Unibanco Holding S.A. | 23,255 | 548 | ||||||
Tele Norte Leste Participacoes S.A., ADRA | 22,660 | 386 | ||||||
Ultrapar Participacoes S.A. | 12,500 | 218 | ||||||
Vale S.A., A Shares | 10,704 | 313 | ||||||
Vale S.A., ADRA | 14,986 | 449 | ||||||
Total Preferred Stocks | 3,224 | |||||||
Total Brazil | 26,710 | |||||||
CAYMAN ISLANDS - 0.24% | ||||||||
COMMON STOCKS - 0.24% (Cost $415) | ||||||||
China Mengniu Dairy Co Ltd. | 66,000 | 204 | ||||||
Mindray Medical International Ltd., ADRA | 7,910 | 211 | ||||||
Total Cayman Islands | 415 | |||||||
CHILE - 0.14% | ||||||||
COMMON STOCKS - 0.14% (Cost $224) | ||||||||
Empresa Nacional de Electricidad S.A./Chile, ADRA | 600 | 34 | ||||||
Empresa Nacional de Electricidad S.A./Chile | 109,000 | 206 | ||||||
Total Chile | 240 | |||||||
CZECH REPUBLIC - 2.30% | ||||||||
COMMON STOCKS - 2.30% (Cost $3,045) | ||||||||
CEZ AS | 10,500 | 602 | ||||||
Komercni Banka AS | 1,624 | 428 | ||||||
Telefonica Czech Republic AS | 111,788 | 2,870 | ||||||
Total Czech Republic | 3,900 | |||||||
EGYPT - 0.51% | ||||||||
COMMON STOCKS - 0.51% (Cost $1,021) | ||||||||
Commercial International Bank Egypt SAE | 82,672 | 383 | ||||||
Egyptian Financial Group-Hermes Holding, GDRD | 5,325 | 32 | ||||||
Egyptian Financial Group-Hermes Holding | 17,649 | 53 | ||||||
Juhayna Food IndustriesB | 152,502 | 138 | ||||||
Telecom Egypt | 92,703 | 255 | ||||||
Total Egypt | 861 | |||||||
HONG KONG/CHINA - 17.34% | ||||||||
COMMON STOCKS - 17.34% (Cost $28,038) | ||||||||
Asia Cement China Holdings Corp. | 181,500 | 148 | ||||||
Bank of China Ltd. | 613,890 | 340 | ||||||
Bank of Communications Co Ltd.B E | 139,000 | 147 | ||||||
Beijing Capital International Airport Co Ltd. | 780,000 | 385 | ||||||
Belle International Holdings Ltd. | 165,000 | 323 | ||||||
BYD Electronic International Co Ltd. | 531,000 | 285 | ||||||
Chaoda Modern Agriculture Holdings Ltd. | 2,200,000 | 1,374 | ||||||
China Coal Energy Co Ltd. | 274,000 | 382 | ||||||
China Construction Bank Corp. | 1,348,325 | 1,276 | ||||||
China Dongxiang Group Co. | 1,469,000 | 514 | ||||||
China Gas Holdings Ltd. | 314,000 | 123 | ||||||
China Life Insurance Co Ltd. | 171,000 | 607 | ||||||
China Minsheng Banking Corp Ltd. | 234,000 | 224 | ||||||
China Mobile Ltd. | 321,000 | 2,955 | ||||||
China Pacific Insurance Group Co Ltd. | 95,400 | 412 | ||||||
China Petroleum & Chemical Corp. | 46,370 | 47 | ||||||
China Petroleum & Chemical Corp., ADRA | 1,260 | 127 | ||||||
China Power International Development Ltd. | 1,148,800 | 265 | ||||||
China Railway Construction Corp Ltd. | 310,500 | 274 | ||||||
China Railway Group Ltd. | 541,000 | 290 | ||||||
China Resources Power Holdings Co Ltd. | 1,086,000 | 2,003 | ||||||
China Shipping Container Lines Co Ltd. | 316,000 | 126 | ||||||
China Telecom Corp Ltd. | 500,000 | 289 | ||||||
China Yuchai International Ltd. | 25,420 | 841 | ||||||
China ZhengTong Auto Services Holdings Ltd.B | 153,000 | 172 | ||||||
CNOOC Ltd. | 226,000 | 558 | ||||||
Dickson Concepts International Ltd. | 687,945 | 545 |
See accompanying notes
10
Table of Contents
American Beacon Emerging Markets Fund SM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
Dongfeng Motor Group Co Ltd. | 26,000 | 41 | ||||||
First Pacific Co Ltd/Hong Kong | 2,147,074 | 2,019 | ||||||
Global Bio-Chem Technology Group Co Ltd. | 1,622,520 | 397 | ||||||
Guangzhou Automobile Group Co Ltd. | 343,370 | 386 | ||||||
Hengan International Group Co Ltd. | 24,000 | 186 | ||||||
Huaneng Power International, Inc. | 655,900 | 362 | ||||||
Huaneng Power International, Inc., ADRA | 370 | 8 | ||||||
Industrial & Commercial Bank of China | 1,251,555 | 1,059 | ||||||
JA Solar Holdings Co Ltd., ADRA B | 20,110 | 138 | ||||||
Maanshan Iron & Steel | 262,000 | 137 | ||||||
NWS Holdings Ltd. | 209,651 | 308 | ||||||
People’s Food Holdings Ltd. | 1,313,911 | 816 | ||||||
Perfect World Co Ltd., ADRA B | 15,730 | 428 | ||||||
PetroChina Co. Ltd. | 1,554,000 | 2,225 | ||||||
Ping An Insurance Group Co. | 38,000 | 416 | ||||||
Renhe Commercial Holdings Co Ltd. | 2,644,000 | 456 | ||||||
Shanghai Industrial Holdings Ltd. | 48,000 | 189 | ||||||
Sinotrans Ltd. | 5,671,058 | 1,387 | ||||||
Sohu.com, Inc.B | 3,300 | 349 | ||||||
Tencent Holdings Ltd. | 18,200 | 520 | ||||||
TPV Technology Ltd. | 264,970 | 152 | ||||||
Want Want China Holdings Ltd. | 234,000 | 210 | ||||||
Weiqiao Textile Co. | 1,422,600 | 1,293 | ||||||
West China Cement Ltd. | 470,000 | 193 | ||||||
Xinhua Winshare Publishing and Media Co Ltd. | 477,000 | 262 | ||||||
Xinjiang Goldwind Science & Technology Co Ltd.C | 85,000 | 118 | ||||||
Yanzhou Coal Mining Co Ltd. | 94,000 | 366 | ||||||
Total Hong Kong/China | 29,453 | |||||||
HUNGARY - 1.05% | ||||||||
COMMON STOCKS - 1.05% (Cost $1,329) | ||||||||
Magyar Telekom Telecommunications plc | 421,763 | 1,438 | ||||||
Richter Gedeon Nyrt | 1,685 | 353 | ||||||
Total Hungary | 1,791 | |||||||
INDIA - 5.88% | ||||||||
COMMON STOCKS - 5.88% (Cost $8,482) | ||||||||
Asian Paints Ltd. | 3,385 | 212 | ||||||
Bank of India | 12,750 | 131 | ||||||
Coal India Ltd. | 11,816 | 102 | ||||||
Dr Reddy’s Laboratories Ltd. | 9,042 | 340 | ||||||
Engineers India Ltd. | 25,898 | 169 | ||||||
GAIL India Ltd. | 16,062 | 173 | ||||||
Glenmark Pharmaceuticals Ltd. | 77,523 | 523 | ||||||
HDFC Bank Ltd. | 9,836 | 511 | ||||||
Hindustan Petroleum Corp Ltd. | 40,070 | 337 | ||||||
ICICI Bank Ltd. | 12,759 | 320 | ||||||
India Cements Ltd. | 263,740 | 591 | ||||||
IndusInd Bank Ltd. | 51,650 | 303 | ||||||
Infosys Technologies Ltd. | 10,960 | 719 | ||||||
Infrastructure Development Finance Co Ltd. | 2,983 | 10 | ||||||
ITC Ltd. | 57,219 | 249 | ||||||
Jindal Steel & Power Ltd. | 17,032 | 256 | ||||||
Jubilant Life Sciences Ltd. | 70,760 | 287 | ||||||
Larsen & Toubro Ltd. | 6,647 | 240 | ||||||
Mahanagar Telephone Nigam | 186,640 | 205 | ||||||
NMDC Ltd. | 59,760 | 368 | ||||||
Patni Computer Systems Ltd. | 22,120 | 212 | ||||||
Reliance Industries Ltd. | 66,006 | 1,471 | ||||||
Rolta India Ltd. | 103,260 | 323 | ||||||
State Bank of India, GDRD E | 5,090 | 696 | ||||||
State Bank of India | 4,540 | 288 | ||||||
Steel Authority of India Ltd. | 53,610 | 194 | ||||||
Sterlite Industries India Ltd. | 77,650 | 319 | ||||||
Sterlite Industries India Ltd., ADRA | 40 | 1 | ||||||
Sun TV Network Ltd. | 5,915 | 57 | ||||||
Tata Consultancy Services Ltd. | 14,799 | 389 | ||||||
Total India | 9,996 | |||||||
INDONESIA - 2.08% | ||||||||
COMMON STOCKS - 2.08% (Cost $2,591) | ||||||||
Aneka Tambang Tbk PT | 194,000 | 52 | ||||||
Astra Agro Lestari Tbk PT | 45,500 | 123 | ||||||
Astra International Tbk PT | 57,400 | 376 | ||||||
Bank Central Asia Tbk PT | 406,000 | 351 | ||||||
Bank Mandiri Tbk PT | 355,500 | 297 | ||||||
Indofood Sukses Makmur Tbk PT | 431,500 | 280 | ||||||
Indosat Tbk PT | 797,500 | 498 | ||||||
Kalbe Farma Tbk PT | 176,500 | 74 | ||||||
Lippo Karawaci Tbk PT | 3,957,000 | 360 | ||||||
Medco Energi Internasional Tbk PT | 1,076,000 | 346 | ||||||
Telekomunikasi Indonesia Tbk PT | 872,800 | 784 | ||||||
Total Indonesia | 3,541 | |||||||
ISRAEL - 0.06% | ||||||||
COMMON STOCKS - 0.06% (Cost $102) | ||||||||
Teva Pharmaceutical Industries Ltd., ADRA | 2,330 | 107 | ||||||
LEBANON - 0.20% | ||||||||
COMMON STOCKS - 0.20% (Cost $375) | ||||||||
Banque Audi sal- Audi Saradar Group, GDRD | 22,681 | 171 | ||||||
BLOM Bank SAL, GDRD | 17,692 | 163 | ||||||
Total Lebanon | 334 | |||||||
MALAYSIA - 1.87% | ||||||||
COMMON STOCKS - 1.87% (Cost $2,732) | ||||||||
Axiata Group Bhd | 385,200 | 637 | ||||||
CIMB Group Holdings Bhd | 96,300 | 266 | ||||||
Genting Malaysia Bhd | 322,910 | 401 | ||||||
Malayan Banking Bhd | 156,318 | 462 | ||||||
Proton Holdings Bhd | 743,800 | 867 | ||||||
Sime Darby Bhd | 77,000 | 234 | ||||||
Tenaga Nasional Bhd | 149,750 | 304 | ||||||
Total Malaysia | 3,171 | |||||||
MEXICO - 4.27% | ||||||||
COMMON STOCKS - 4.27% (Cost $6,323) | ||||||||
America Movil SAB de CV, ADRA | 22,047 | 1,261 | ||||||
Cemex SAB de CV, ADRA | 191,880 | 1,666 | ||||||
Consorcio ARA SAB de CV | 299,700 | 177 | ||||||
Desarrolladora Homex SAB de CV, ADRA B | 17,650 | 498 | ||||||
Empresas ICA SAB de CV | 57,400 | 142 | ||||||
Fomento Economico Mexicano SAB de CV, ADRA | 8,600 | 540 | ||||||
Gruma SAB de CV | 287,900 | 577 | ||||||
Grupo Continental SAB de CV | 51,150 | 192 | ||||||
Grupo Financiero Banorte SAB de CV | 131,989 | 659 | ||||||
Grupo Televisa S.A., ADRA | 21,000 | 498 | ||||||
Industrias CH SAB de CVB | 11,400 | 45 | ||||||
Telefonos de Mexico SAB de CV, ADRA | 30,050 | 563 | ||||||
Wal-Mart de Mexico SAB de CV | 141,900 | 444 | ||||||
Total Mexico | 7,262 | |||||||
See accompanying notes
11
Table of Contents
American Beacon Emerging Markets Fund SM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
PERU - 0.40% | ||||||||
COMMON STOCKS - 0.40% (Cost $692) | ||||||||
Cia de Minas Buenaventura S.A., ADRA | 8,330 | 347 | ||||||
Credicorp Ltd. | 3,410 | 329 | ||||||
Total Peru | 676 | |||||||
PHILIPPINES - 2.04% | ||||||||
COMMON STOCKS - 2.04% (Cost $3,046) | ||||||||
Ayala Corp. | 31,560 | 288 | ||||||
Bank of the Philippine Islands | 182,023 | 250 | ||||||
First Philippine Holdings Corp. | 911,470 | 1,408 | ||||||
Metro Pacific Investments Corp. | 3,025,000 | 259 | ||||||
Metropolitan Bank & Trust | 206,289 | 331 | ||||||
Pepsi-Cola Products Philippines, Inc.C | 4,938,000 | 283 | ||||||
Philippine Long Distance Telephone Co. | 5,620 | 326 | ||||||
SM Investments Corp. | 23,830 | 322 | ||||||
Total Philippines | 3,467 | |||||||
POLAND - 1.24% | ||||||||
COMMON STOCKS - 1.24% (Cost $1,918) | ||||||||
Asseco Poland S.A. | 24,141 | 483 | ||||||
Bank Pekao S.A. | 2,940 | 193 | ||||||
Central European Distribution Corp.B | 11,838 | 140 | ||||||
Eurocash S.A. | 41,000 | 502 | ||||||
Telekomunikacja Polska S.A. | 120,102 | 793 | ||||||
Total Poland | 2,111 | |||||||
RUSSIA - 4.03% | ||||||||
COMMON STOCKS - 4.03% (Cost $4,828) | ||||||||
Eurasia Drilling Co Ltd., GDRD | 6,265 | 212 | ||||||
Gazprom OAO, ADRA | 148,310 | 2,530 | ||||||
Lukoil OAO, ADRA | 31,131 | 2,168 | ||||||
Rosneft Oil Co., GDRB D E | 98,765 | 877 | ||||||
Sberbank of Russia, GDRD | 1,100 | 440 | ||||||
VimpelCom Ltd., ADRA | 42,230 | 615 | ||||||
Total Russia | 6,842 | |||||||
SINGAPORE - 0.18% | ||||||||
COMMON STOCKS - 0.18% (Cost $285) | ||||||||
Haw Par Corp Ltd. | 59,325 | 301 | ||||||
SOUTH AFRICA - 6.51% | ||||||||
COMMON STOCKS - 6.51% (Cost $8,810) | ||||||||
Anglo Platinum Ltd. | 7,782 | 791 | ||||||
ArcelorMittal South Africa Ltd. | 13,404 | 183 | ||||||
AVI Ltd. | 84,142 | 395 | ||||||
Clicks Group Ltd. | 57,180 | 382 | ||||||
Imperial Holdings Ltd. | 11,400 | 205 | ||||||
JD Group Ltd/South Africa | 48,110 | 351 | ||||||
MTN Group Ltd. | 96,311 | 2,142 | ||||||
Murray & Roberts Holdings Ltd. | 101,060 | 388 | ||||||
Naspers Ltd., N Shares | 15,039 | 905 | ||||||
Nedbank Group Ltd. | 21,490 | 479 | ||||||
Pick n Pay Stores Ltd. | 69,135 | 448 | ||||||
SABMiller plc | 20,375 | 770 | ||||||
Sappi Ltd. | 50,644 | 276 | ||||||
Sasol Ltd. | 4,820 | 278 | ||||||
Standard Bank Group Ltd/South Africa | 181,294 | 2,845 | ||||||
Telkom SA Ltd. | 39,640 | 231 | ||||||
Total South Africa | 11,069 | |||||||
SOUTH KOREA - 17.72% | ||||||||
COMMON STOCKS - 16.32% (Cost $22,377) | ||||||||
Amorepacific Corp. | 126 | 127 | ||||||
Cheil Industries, Inc. | 2,082 | 229 | ||||||
Cheil Worldwide, Inc. | 13,140 | 169 | ||||||
CJ CheilJedang Corp. | 2,036 | 472 | ||||||
Grand Korea Leisure Co Ltd. | 25,130 | 344 | ||||||
GS Engineering & Construction Corp. | 1,480 | 178 | ||||||
Hana Financial Group, Inc. | 270 | 11 | ||||||
Hite Brewery Co Ltd. | 2,811 | 308 | ||||||
Hynix Semiconductor, Inc. | 12,620 | 398 | ||||||
Hyundai Development Co. | 9,690 | 265 | ||||||
Hyundai Engineering & Construction Co Ltd. | 2,729 | 229 | ||||||
Hyundai Heavy Industries Co Ltd. | 471 | 235 | ||||||
Hyundai Mobis | 811 | 272 | ||||||
Hyundai Motor Co. | 3,446 | 792 | ||||||
Hyundai Steel Co. | 1,637 | 208 | ||||||
Jinro Ltd. | 5,440 | 184 | ||||||
KB Financial Group, Inc. | 49,824 | 2,674 | ||||||
Kia Motors Corp. | 4,580 | 329 | ||||||
Korea Electric Power Corp. | 88,035 | 2,103 | ||||||
Korea Exchange Bank | 74,480 | 633 | ||||||
Korean Reinsurance Co. | 21,023 | 241 | ||||||
KT Corp., ADRA | 4,090 | 83 | ||||||
KT Corp. | 2,720 | 98 | ||||||
KT&G Corp. | 9,264 | 548 | ||||||
LG Chem Ltd. | 1,263 | 624 | ||||||
LG Display Co Ltd. | 5,250 | 189 | ||||||
LG Electronics, Inc. | 4,020 | 387 | ||||||
Lotte Chilsung Beverage Co Ltd. | 1,359 | 1,456 | ||||||
Lotte Confectionery Co Ltd. | 804 | 1,192 | ||||||
NCSoft Corp. | 506 | 134 | ||||||
NHN Corp. | 1,230 | 244 | ||||||
NongShim Co Ltd. | 2,230 | 519 | ||||||
OCI Co Ltd. | 743 | 444 | ||||||
POSCO | 5,550 | 2,423 | ||||||
POSCO, ADRA | 790 | 87 | ||||||
Samsung Electronics Co. Ltd. | 2,790 | 2,324 | ||||||
Samsung Fire & Marine Insurance Co Ltd. | 2,836 | 609 | ||||||
Shinhan Financial Group Co Ltd. | 40,425 | 1,981 | ||||||
Shinsegae Co Ltd. | 1,751 | 441 | ||||||
SK Chemicals Co Ltd. | 2,921 | 206 | ||||||
SK Innovation Co Ltd. | 1,131 | 245 | ||||||
SK Telecom Co Ltd., ADRA | 25,410 | 482 | ||||||
SK Telecom Co Ltd. | 9,308 | 1,412 | ||||||
SSCP Co Ltd. | 10,075 | 31 | ||||||
Tong Yang Life Insurance | 34,240 | 409 | ||||||
Woongjin Coway Co Ltd. | 8,066 | 269 | ||||||
Yuhan Corp. | 3,503 | 469 | ||||||
Total Common Stocks | 27,707 | |||||||
PREFERRED STOCKS - 1.40% (Cost $1,671) | ||||||||
Hyundai Motor Co. | 29,132 | 2,188 | ||||||
Samsung Electronics Co. Ltd. | 313 | 184 | ||||||
Total Preferred Stocks | 2,372 | |||||||
Total South Korea | 30,079 | |||||||
TAIWAN - 5.78% | ||||||||
COMMON STOCKS - 5.78% (Cost $7,784) | ||||||||
Advanced Semiconductor Engineering, Inc. | 125,000 | 145 | ||||||
Asia Cement Corp. | 128,720 | 172 | ||||||
Asustek Computer, Inc. | 50,353 | 454 | ||||||
AU Optronics Corp., ADRA | 53,060 | 430 | ||||||
AU Optronics Corp. | 149,520 | 120 | ||||||
Chimei Innolux Corp. | 232,000 | 238 | ||||||
China Steel Corp. | 169,890 | 210 | ||||||
Chinatrust Financial Holding Co Ltd. | 193,914 | 178 |
See accompanying notes
12
Table of Contents
American Beacon Emerging Markets Fund SM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
E Ink Holdings, Inc. | 29,000 | 59 | ||||||
Epistar Corp.B | 23,000 | 76 | ||||||
First Financial Holding Co Ltd. | 177,406 | 164 | ||||||
Formosa Plastics Corp. | 93,000 | 380 | ||||||
Fubon Financial Holding Co Ltd. | 186,034 | 273 | ||||||
Hon Hai Precision Industry Co Ltd. | 284,645 | 1,078 | ||||||
HTC Corp. | 11,818 | 537 | ||||||
KGI Securities Co Ltd. | 365,000 | 191 | ||||||
Nan Ya Plastics Corp.B | 47,000 | 144 | ||||||
Nan Ya Printed Circuit Board Corp. | 157,019 | 513 | ||||||
Novatek Microelectronics Corp.B | 107,000 | 327 | ||||||
Powertech Technology, Inc. | 84,000 | 305 | ||||||
Quanta Computer, Inc. | 133,000 | 262 | ||||||
Siliconware Precision Industries Co. | 100,000 | 133 | ||||||
SinoPac Financial Holdings Co Ltd. | 1,327,987 | 630 | ||||||
Taiwan Semiconductor Manufacturing Co Ltd. | 418,385 | 1,070 | ||||||
Tatung Co Ltd. | 397,298 | 199 | ||||||
Transcend Information, Inc. | 120,520 | 353 | ||||||
Uni-President Enterprises Corp. | 231,400 | 333 | ||||||
United Microelectronics Corp. | 1,008,226 | 524 | ||||||
Young Fast Optoelectronics Co Ltd. | 46,000 | 315 | ||||||
Total Taiwan | 9,813 | |||||||
THAILAND - 1.25% | ||||||||
COMMON STOCKS - 1.25% (Cost $1,322) | ||||||||
Bangkok Bank PCL | 35,790 | 204 | ||||||
Kasikornbank PCL, NVDRF | 103,600 | 439 | ||||||
Kasikornbank PCL | 49,100 | 214 | ||||||
Land and Houses PCL, NVDRF | 689,100 | 152 | ||||||
PTT PCL | 30,500 | 383 | ||||||
Siam Cement PCL, NVDRF | 33,800 | 425 | ||||||
Total Access Communication PCL, NVDRF | 186,400 | 315 | ||||||
Total Thailand | 2,132 | |||||||
TURKEY - 2.43% | ||||||||
COMMON STOCKS - 2.43% (Cost $3,529) | ||||||||
Anadolu Efes Biracilik Ve Malt Sanayii AS | 33,142 | 510 | ||||||
Asya Katilim Bankasi AS | 137,080 | 271 | ||||||
Coca-Cola Icecek AS | 14,868 | 224 | ||||||
TAV Havalimanlari Holding ASB | 39,704 | 200 | ||||||
Turk Telekomunikasyon AS | 85,095 | 443 | ||||||
Turkcell Iletisim Hizmetleri AS, ADRA | 3,540 | 52 | ||||||
Turkcell Iletisim Hizmetleri AS | 31,130 | 184 | ||||||
Turkiye Is Bankasi | 169,572 | 600 | ||||||
Turkiye Vakiflar Bankasi Tao | 621,147 | 1,650 | ||||||
Total Turkey | 4,134 | |||||||
UNITED KINGDOM - 0.09% | ||||||||
COMMON STOCKS - 0.09% (Cost $107) | ||||||||
JKX Oil & Gas plc | 30,390 | 156 | ||||||
UNITED STATES - 0.85% | ||||||||
COMMON STOCKS - 0.85% (Cost $1,592) | ||||||||
Flextronics International Ltd.B | 206,600 | 1,440 | ||||||
SHORT-TERM INVESTMENTS - 2.46% (Cost $4,185) | ||||||||
JPMorgan U.S. Government Money Market Fund. | 4,184,849 | 4,185 | ||||||
TOTAL INVESTMENTS - 98.12% (Cost $141,245) | 166,706 | |||||||
OTHER ASSETS, NET OF LIABILITIES - 1.88% | 3,202 | |||||||
TOTAL NET ASSETS - 100.00% | $ | 169,908 | ||||||
Percentages are stated as a percent of net assets.
A | ADR — American Depositary Receipt | |
B | Non-income producing security. | |
C | Private Placement | |
D | GDR ��� Global Depositary Receipt | |
E | 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 $1,010 or 0.59% of net assets. The Fund has no right to demand registration of these securities | |
F | NVDR — Non Voting Depositary Receipt |
See accompanying notes
13
Table of Contents
American Beacon Emerging Markets Fund SM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Futures Contracts
(dollars in thousands)
(dollars in thousands)
Unrealized | ||||||||||||||||
Appreciation/ | ||||||||||||||||
Number of Contracts | Expiration Date | Value | (Depreciation) | |||||||||||||
MSCI Emerging Market EMini Future | 101 | June, 2011 | 6,105 | 208 | ||||||||||||
6,105 | 208 | |||||||||||||||
See accompanying notes
14
Table of Contents
American Beacon Emerging Markets Fund SM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
AUSTRALIA - 1.78% | ||||||||
COMMON STOCKS - 1.78% (Cost $23,138) | ||||||||
National Australia Bank Ltd. | 155,420 | 4,613 | ||||||
Nufarm Ltd/Australia | 307,090 | 1,626 | ||||||
Primary Health Care Ltd. | 615,815 | 2,342 | ||||||
QBE Insurance Group Ltd. | 627,176 | 12,863 | ||||||
Telstra Corp Ltd. | 2,156,700 | 6,879 | ||||||
Total Australia | 28,323 | |||||||
AUSTRIA - 0.20% | ||||||||
COMMON STOCKS - 0.20% (Cost $5,477) | ||||||||
Telekom Austria AG | 202,700 | 3,134 | ||||||
BELGIUM - 0.59% | ||||||||
COMMON STOCKS - 0.59% (Cost $3,538) | ||||||||
Anheuser-Busch InBev N.V.A | 147,800 | 9,424 | ||||||
CANADA - 0.88% | ||||||||
COMMON STOCKS - 0.88% (Cost $9,775) | ||||||||
Potash Corp of Saskatchewan, Inc. | 57,600 | 3,254 | ||||||
Rogers Communications, Inc., Class B | 79,600 | 3,013 | ||||||
Talisman Energy, Inc. | 319,100 | 7,706 | ||||||
Total Canada | 13,973 | |||||||
FINLAND - 1.20% | ||||||||
COMMON STOCKS - 1.20% (Cost $19,796) | ||||||||
Nokia OYJ | 1,639,103 | 15,101 | ||||||
Sampo OYJ | 115,100 | 3,873 | ||||||
Total Finland | 18,974 | |||||||
FRANCE - 13.10% | ||||||||
COMMON STOCKS - 13.10% (Cost $155,103) | ||||||||
Air Liquide S.A. | 24,680 | 3,651 | ||||||
Alstom S.A. | 164,934 | 10,968 | ||||||
AXA S.A.A | 643,806 | 14,447 | ||||||
BNP Paribas | 183,467 | 14,520 | ||||||
Carrefour S.A. | 179,760 | 8,523 | ||||||
Cie Generale des Etablissements Michelin | 90,220 | 9,043 | ||||||
Danone | 82,250 | 6,025 | ||||||
EDF S.A. | 145,570 | 6,129 | ||||||
European Aeronautic Defence and Space Co N.V. | 203,875 | 6,308 | ||||||
France Telecom S.A. | 533,910 | 12,522 | ||||||
Gemalto N.V. | 103,177 | 5,288 | ||||||
Legrand S.A., ADRB | 224,328 | 10,244 | ||||||
Sanofi-Aventis S.A. | 489,577 | 38,721 | ||||||
Societe Generale | 131,225 | 8,777 | ||||||
Technip S.A. | 69,550 | 7,846 | ||||||
Total S.A. | 390,727 | 25,012 | ||||||
Valeo S.A. | 110,396 | 7,030 | ||||||
Vinci S.A. | 140,197 | 9,365 | ||||||
Vivendi S.A. | 112,220 | 3,521 | ||||||
Total France | 207,940 | |||||||
GERMANY - 8.64% | ||||||||
COMMON STOCKS - 8.64% (Cost $100,240) | ||||||||
Bayer AGA | 76,715 | 6,744 | ||||||
Bayerische Motoren Werke AG | 89,030 | 8,396 | ||||||
Celesio AG | 245,480 | 5,952 | ||||||
Deutsche Post AG | 986,027 | 19,512 | ||||||
E.ON AGA | 426,700 | 14,587 | ||||||
Linde AG | 81,883 | 14,748 | ||||||
Merck KGaA | 81,929 | 8,679 | ||||||
Muenchener Rueckversicherungs AG | 92,550 | 15,278 | ||||||
SAP AG | 204,010 | 13,144 | ||||||
Siemens AG | 207,383 | 30,169 | ||||||
Total Germany | 137,209 | |||||||
GREECE - 0.53% | ||||||||
COMMON STOCKS - 0.53% (Cost $9,226) | ||||||||
OPAP S.A. | 396,130 | 8,373 | ||||||
HONG KONG/CHINA - 3.57% | ||||||||
COMMON STOCKS - 3.57% (Cost $49,810) | ||||||||
AIA Group Ltd.C | 2,400,400 | 8,113 | ||||||
Cheung Kong Holdings Ltd. | 472,500 | 7,435 | ||||||
Esprit Holdings Ltd. | 2,382,723 | 9,879 | ||||||
Hang Seng Bank Ltd. | 343,800 | 5,383 | ||||||
HSBC Holdings plc | 1,128,796 | 12,253 | ||||||
Hutchison Whampoa Ltd. | 187,000 | 2,138 | ||||||
Swire Pacific Ltd. | 237,100 | 3,621 | ||||||
Yue Yuen Industrial Holdings Ltd. | 2,281,667 | 7,874 | ||||||
Total Hong Kong/China | 56,696 | |||||||
IRELAND - 0.93% | ||||||||
COMMON STOCKS - 0.93% (Cost $16,845) | ||||||||
CRH plc | 243,030 | 5,943 | ||||||
James Hardie Industries SEC | 385,203 | 2,491 | ||||||
Smurfit Kappa Group plc | 465,636 | 6,383 | ||||||
Total Ireland | 14,817 | |||||||
ISRAEL - 0.30% | ||||||||
COMMON STOCKS - 0.30% (Cost $5,277) | ||||||||
Teva Pharmaceutical Industries Ltd., ADRB | 102,650 | 4,694 | ||||||
ITALY - 3.23% | ||||||||
COMMON STOCKS - 3.23% (Cost $46,854) | ||||||||
Atlantia SpA | 218,530 | 5,376 | ||||||
ENI SpA | 233,856 | 6,252 | ||||||
Finmeccanica SpA | 586,755 | 7,926 | ||||||
Intesa Sanpaolo SpA | 1,072,743 | 3,562 | ||||||
Saras SpA | 4,087,555 | 10,263 | ||||||
Snam Rete Gas SpA | 1,005,074 | 6,252 | ||||||
UniCredit SpA | 4,501,489 | 11,588 | ||||||
Total Italy | 51,219 | |||||||
JAPAN - 14.79% | ||||||||
COMMON STOCKS - 14.79% (Cost $218,466) | ||||||||
Asics Corp. | 151,980 | 2,188 | ||||||
Canon, Inc. | 139,900 | 6,553 | ||||||
Daito Trust Construction Co Ltd. | 104,900 | 8,341 | ||||||
Don Quijote Co Ltd. | 143,200 | 5,323 | ||||||
eAccess Ltd.A | 4,290 | 2,010 | ||||||
East Japan Railway Co. | 96,900 | 5,346 | ||||||
FUJIFILM Holdings Corp. | 107,900 | 3,339 | ||||||
Haseko Corp. | 3,521,018 | 2,344 | ||||||
Honda Motor Co Ltd. | 393,500 | 15,475 | ||||||
ITOCHU Corp. | 221,700 | 2,293 | ||||||
JGC Corp. | 332,000 | 8,182 | ||||||
JS Group Corp. | 245,600 | 5,886 | ||||||
JX Holdings, Inc. | 350,500 | 2,428 | ||||||
KDDI Corp. | 1,397 | 9,266 | ||||||
Keyence Corp. | 10,900 | 2,843 | ||||||
Kirin Holdings Co Ltd. | 336,000 | 4,672 | ||||||
Konica Minolta Holdings, Inc. | 347,500 | 3,046 | ||||||
Medipal Holdings Corp. | 557,900 | 4,615 |
See accompanying notes
15
Table of Contents
American Beacon International Equity Fund SM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
Mitsubishi Corp. | 125,000 | 3,358 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 2,099,400 | 10,016 | ||||||
Nintendo Co. Ltd. | 11,400 | 2,694 | ||||||
Ricoh Co Ltd. | 445,000 | 4,883 | ||||||
Ryohin Keikaku Co Ltd. | 36,100 | 1,660 | ||||||
Sankyo Co Ltd. | 110,800 | 5,723 | ||||||
Seven & I Holdings Co Ltd. | 194,300 | 4,846 | ||||||
Shin-Etsu Chemical Co Ltd. | 246,000 | 12,737 | ||||||
SMC Corp/Japan | 44,700 | 8,128 | ||||||
Sony Financial Holdings, Inc. | 521,800 | 9,643 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 399,000 | 12,274 | ||||||
Taiyo Nippon Sanso Corp. | 473,000 | 3,802 | ||||||
Tokyo Electron Ltd. | 89,200 | 5,130 | ||||||
Tokyo Steel Manufacturing Co Ltd. | 773,200 | 8,322 | ||||||
Toyoda Gosei Co Ltd. | 291,900 | 6,352 | ||||||
Toyota Motor Corp. | 542,800 | 21,615 | ||||||
Yahoo Japan Corp. | 15,781 | 5,757 | ||||||
Yamada Denki Co. Ltd. | 196,470 | 13,612 | ||||||
Total Japan | 234,702 | |||||||
NETHERLANDS - 5.50% | ||||||||
COMMON STOCKS - 5.50% (Cost $75,614) | ||||||||
Akzo Nobel N.V.A | 230,998 | 17,942 | ||||||
ING Groep N.V. | 1,331,840 | 17,557 | ||||||
Koninklijke Philips Electronics N.V. | 499,917 | 14,824 | ||||||
Randstad Holding N.V. | 83,910 | 4,720 | ||||||
Reed Elsevier N.V. | 1,076,005 | 14,100 | ||||||
SBM Offshore N.V.D | 265,765 | 7,776 | ||||||
TNT N.V. | 420,924 | 10,365 | ||||||
Total Netherlands | 87,284 | |||||||
NORWAY - 1.60% | ||||||||
COMMON STOCKS - 1.60% (Cost $13,517) | ||||||||
Aker Solutions ASAA | 271,430 | 6,550 | ||||||
Statoil ASA | 266,630 | 7,801 | ||||||
Telenor ASA | 640,840 | 11,072 | ||||||
Total Norway | 25,423 | |||||||
PORTUGAL - 0.58% | ||||||||
COMMON STOCKS - 0.58% (Cost $5,853) | ||||||||
Portugal Telecom SGPS S.A. | 747,760 | 9,128 | ||||||
SINGAPORE - 2.34% | ||||||||
COMMON STOCKS - 2.34% (Cost $22,314) | ||||||||
DBS Group Holdings Ltd. | 1,898,060 | 23,228 | ||||||
Singapore Telecommunications Ltd. | 3,428,000 | 8,738 | ||||||
United Overseas Bank Ltd. | 321,000 | 5,145 | ||||||
Total Singapore | 37,111 | |||||||
SOUTH KOREA - 2.46% | ||||||||
COMMON STOCKS - 2.46% (Cost $24,294) | ||||||||
Hyundai Heavy Industries Co Ltd. | 18,721 | 9,346 | ||||||
Hyundai Mobis | 12,664 | 4,242 | ||||||
KB Financial Group, Inc., ADRB | 143,018 | 7,621 | ||||||
KT&G Corp. | 174,380 | 10,318 | ||||||
LG Electronics, Inc. | 33,975 | 3,265 | ||||||
Samsung Electronics Co Ltd., GDRE F | 10,114 | 4,202 | ||||||
Total South Korea | 38,994 | |||||||
SPAIN - 3.61% | ||||||||
COMMON STOCKS - 3.61% (Cost $41,707) | ||||||||
Amadeus IT Holding S.A., A Shares | 221,700 | 4,643 | ||||||
Banco Santander S.A. | 884,366 | 11,295 | ||||||
Enagas S.A. | 332,547 | 8,228 | ||||||
Gamesa Corp Tecnologica S.A. | 537,029 | 5,049 | ||||||
Iberdrola S.A. | 720,388 | 6,690 | ||||||
Repsol YPF S.A. | 257,990 | 9,213 | ||||||
Tecnicas Reunidas S.A. | 83,252 | 5,226 | ||||||
Telefonica S.A. | 259,268 | 6,970 | ||||||
Total Spain | 57,314 | |||||||
SWEDEN - 1.84% | ||||||||
COMMON STOCKS - 1.84% (Cost $20,878) | ||||||||
Assa Abloy AB | 110,800 | 3,326 | ||||||
Skandinaviska Enskilda Banken AB, A Shares | 768,910 | 7,393 | ||||||
Swedbank AB | 258,100 | 4,895 | ||||||
Telefonaktiebolaget LM Ericsson, B Shares | 898,630 | 13,646 | ||||||
Total Sweden | 29,260 | |||||||
SWITZERLAND - 7.84% | ||||||||
COMMON STOCKS - 7.84% (Cost $105,450) | ||||||||
Adecco S.A. | 69,120 | 4,934 | ||||||
Givaudan S.A. | 8,771 | 9,755 | ||||||
Julius Baer Group Ltd. | 75,000 | 3,505 | ||||||
Nestle S.A. | 67,550 | 4,194 | ||||||
Novartis AG | 601,310 | 35,695 | ||||||
Roche Holding AG | 153,510 | 24,899 | ||||||
Swiss Reinsurance Co. Ltd. | 100,960 | 6,017 | ||||||
UBS AG | 1,404,024 | 28,064 | ||||||
Zurich Financial Services AG | 26,423 | 7,423 | ||||||
Total Switzerland | 124,486 | |||||||
UNITED KINGDOM - 20.66% | ||||||||
COMMON STOCKS - 20.66% (Cost $260,660) | ||||||||
Anglo American plc | 104,458 | 5,445 | ||||||
Aviva plc | 1,725,862 | 12,880 | ||||||
BAE Systems plc | 1,267,054 | 6,940 | ||||||
Balfour Beatty plc | 799,846 | 4,379 | ||||||
Barclays plc | 1,148,487 | 5,416 | ||||||
BG Group plc | 137,442 | 3,521 | ||||||
BHP Billiton plc | 206,292 | 8,699 | ||||||
BP plc | 1,563,839 | 12,082 | ||||||
British American Tobacco plc | 423,629 | 18,476 | ||||||
Diageo plc | 188,780 | 3,841 | ||||||
Eurasian Natural Resources Corp plc | 288,256 | 4,389 | ||||||
GlaxoSmithKline plc | 1,056,382 | 23,036 | ||||||
Home Retail Group plc | 2,002,916 | 7,357 | ||||||
HSBC Holdings plc | 1,318,252 | 14,431 | ||||||
Informa plc | 870,343 | 6,058 | ||||||
International Power plc | 597,900 | 3,302 | ||||||
Kingfisher plc | 1,370,800 | 6,285 | ||||||
Lloyds Banking Group plc | 4,600,244 | 4,553 | ||||||
Marks & Spencer Group plc | 646,520 | 4,190 | ||||||
Michael Page International plc | 685,409 | 6,320 | ||||||
Pearson plc | 305,380 | 5,871 | ||||||
Petrofac Ltd. | 107,812 | 2,719 | ||||||
Prudential plc | 744,080 | 9,607 | ||||||
Resolution Ltd. | 1,398,029 | 7,069 | ||||||
Rexam plc | 1,625,299 | 10,604 | ||||||
Rio Tinto plc | 130,610 | 9,511 | ||||||
Rolls-Royce Group plcC | 177,126,365 | 19,859 | ||||||
Royal Dutch Shell plc, A Shares | 299,638 | 11,624 | ||||||
Royal Dutch Shell plc, B Shares | 299,206 | 11,630 | ||||||
Standard Chartered plc | 379,252 | 10,509 | ||||||
Tesco plc | 779,330 | 5,253 | ||||||
Unilever plc | 674,242 | 21,871 | ||||||
Vodafone Group plc | 7,927,941 | 22,724 | ||||||
WM Morrison Supermarkets plc | 929,100 | 4,575 | ||||||
WPP plc | 352,600 | 4,603 |
See accompanying notes
16
Table of Contents
American Beacon International Equity Fund SM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
Xstrata plc | 326,530 | 8,299 | ||||||
Total United Kingdom | 327,928 | |||||||
UNITED STATES - 0.37% | ||||||||
COMMON STOCKS - 0.37% (Cost $8,673) | ||||||||
Flextronics International Ltd.C | 848,510 | 5,914 | ||||||
SHORT-TERM INVESTMENTS - 2.29% (Cost $36,307) | ||||||||
JPMorgan U.S. Government Money Market Fund | 36,307,130 | 36,307 | ||||||
SECURITIES LENDING COLLATERAL - 4.99% (Cost $79,228) | ||||||||
Wells Fargo Advantage Government Money Market Fund | 7,000,000 | 7,000 | ||||||
American Beacon U.S. Government Money Market Select FundG | 72,228,163 | 72,228 | ||||||
Total Securities Lending Collateral | 79,228 | |||||||
TOTAL INVESTMENTS - 103.82% (Cost $1,358,041) | 1,647,855 | |||||||
LIABILITIES, NET OF OTHER ASSETS — (3.82%) | (60,672 | ) | ||||||
TOTAL NET ASSETS - 100.00% | $ | 1,587,183 | ||||||
A | All or a portion of this security is on loan at April 30, 2011. | |
B | ADR — American Depositary Receipt | |
C | Non-income producing security. | |
D | Private Placement | |
E | 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 $4,202 or 0.27% of net assets. The Fund has no right to demand registration of these securities | |
F | GDR — Global Depositary Receipt | |
G | The Fund is affiliated by having the same investment advisor. |
Percentages are stated as a percent of net assets.
Futures Contracts
(dollars in thousands)
(dollars in thousands)
Unrealized | ||||||||||||||||
Appreciation/ | ||||||||||||||||
Number of Contracts | Expiration Date | Value | (Depreciation) | |||||||||||||
France CAC 40 Index | 83 | June, 2011 | 4,938 | 290 | ||||||||||||
Germany DAX Index | 15 | June, 2011 | 4,189 | 365 | ||||||||||||
UK FTSE 100 Index | 106 | June, 2011 | 10,667 | 488 | ||||||||||||
Hang Seng Index | 8 | May, 2011 | 1,209 | (23 | ) | |||||||||||
Italy MIB 30 Index | 9 | June, 2011 | 1,474 | 47 | ||||||||||||
Tokyo FE TOPIX Index | 101 | June, 2011 | 10,624 | 101 | ||||||||||||
Spain IBEX 35 Index | 11 | May, 2011 | 1,751 | 13 | ||||||||||||
Sweden OMX Index | 82 | May, 2011 | 1,575 | 40 | ||||||||||||
Canada S&PCDA 60 Index | 34 | June, 2011 | 5,711 | 21 | ||||||||||||
Australia SPI Index | 32 | June, 2011 | 4,209 | 40 | ||||||||||||
Netherlands 200 AEX Index | 12 | May, 2011 | 1,273 | (1 | ) | |||||||||||
47,621 | 1,382 | |||||||||||||||
See accompanying notes
17
Table of Contents
American Beacon International Equity Fund SM
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Forward Foreign Currency Exchange Contracts
(dollars in thousands)
(dollars in thousands)
Unrealized Gain/ | ||||||||||||||||
Contracts To Deliver | Settlement Date | Market Value | (Loss) | |||||||||||||
1,309 | Canadian Dollar | 6/17/2011 | 1,382 | (35 | ) | |||||||||||
734 | Swiss Franc | 6/17/2011 | 849 | (54 | ) | |||||||||||
2,221 | Euro Currency | 6/17/2011 | 3,286 | (156 | ) | |||||||||||
1,517 | Pound Sterling | 6/17/2011 | 2,532 | (86 | ) | |||||||||||
216,605 | Japanese Yen | 6/17/2011 | 2,671 | (58 | ) | |||||||||||
2,259 | Swedish Krona | 6/17/2011 | 373 | (17 | ) | |||||||||||
946 | Australian Dollar | 6/17/2011 | 1,031 | (72 | ) | |||||||||||
Total contracts to deliver | $ | 12,124 | (478 | ) | ||||||||||||
(Receivable amount $11,646) | ||||||||||||||||
Unrealized Gain/ | ||||||||||||||||
Contracts To Receive | Settlement Date | Market Value | (Loss) | |||||||||||||
5,209 | Canadian Dollar | 6/17/2011 | 5,500 | 193 | ||||||||||||
3,627 | Swiss Franc | 6/17/2011 | 4,194 | 276 | ||||||||||||
8,805 | Euro Currency | 6/17/2011 | 13,025 | 855 | ||||||||||||
6,258 | Pound Sterling | 6/17/2011 | 10,447 | 428 | ||||||||||||
821,825 | Japanese Yen | 6/17/2011 | 10,134 | 43 | ||||||||||||
9,368 | Swedish Krona | 6/17/2011 | 1,547 | 90 | ||||||||||||
3,850 | Australian Dollar | 6/17/2011 | 4,196 | 403 | ||||||||||||
Total contracts to recieve | $ | 49,043 | 2,288 | |||||||||||||
(Payable amount $(46,755)) | ||||||||||||||||
Net Currency Fluctuation | 1,810 | |||||||||||||||
See accompanying notes
18
Table of Contents
American Beacon Funds
Statements of Assets and Liabilities
April 30, 2011 (Unaudited) (in thousands, except share and per share amounts)
Statements of Assets and Liabilities
April 30, 2011 (Unaudited) (in thousands, except share and per share amounts)
Emerging | International | |||||||
Markets Fund | Equity Fund | |||||||
Assets: | ||||||||
Investments in unaffiliated securities, at value A D | $ | 166,706 | $ | 1,575,627 | ||||
Investments in affiliated securities, at value B | — | 72,228 | ||||||
Foreign currency, at value C | 1,103 | 2,039 | ||||||
Cash | — | 24 | ||||||
Deposit with brokers for futures contracts | 757 | 6,356 | ||||||
Receivable for investments sold | 1,042 | 9,829 | ||||||
Dividends and interest receivable | 617 | 7,553 | ||||||
Receivable for fund shares sold | 221 | 2,074 | ||||||
Receivable for tax reclaims | 5 | 1,632 | ||||||
Receivable for expense reimbursement (Note 2) | 5 | — | ||||||
Receivable for variation margin on open futures contracts | 53 | 33 | ||||||
Net unrealized Appreciation on foreign currency contracts | — | 1,810 | ||||||
Prepaid expenses | 56 | 79 | ||||||
Total assets | 170,565 | 1,679,284 | ||||||
Liabilities: | ||||||||
Payable for investments purchased | 518 | 10,270 | ||||||
Payable upon return of securities loaned | — | 79,228 | ||||||
Payable for fund shares redeemed | 11 | 1,355 | ||||||
Management and investment advisory fees payable (Note 2) | 97 | 405 | ||||||
Administrative service and service fees payable (Note 2) | 14 | 428 | ||||||
Professional fees payable | 7 | 39 | ||||||
Trustee fees payable | 2 | 29 | ||||||
Prospectus and shareholder reports | — | 148 | ||||||
Other liabilities | 8 | 199 | ||||||
Total liabilities | 657 | 92,101 | ||||||
Net Assets | $ | 169,908 | $ | 1,587,183 | ||||
Analysis of Net Assets: | ||||||||
Paid-in-capital | 137,657 | 1,449,619 | ||||||
Undistributed net investment income | (118 | ) | 19,050 | |||||
Accumulated net realized gain (loss) | 6,675 | (175,127 | ) | |||||
Unrealized appreciation of investments, futures contracts, and foreign currency | 25,694 | 293,641 | ||||||
Net assets | $ | 169,908 | $ | 1,587,183 | ||||
Shares outstanding (no par value): | ||||||||
Institutional Class | 587,429 | 31,803,168 | ||||||
Y Class | 362,054 | 36,604 | ||||||
Investor Class | 842,608 | 28,226,610 | ||||||
Advisor Class | N/A | 86,147 | ||||||
Retirement Class | N/A | 86 | ||||||
AMR Class | 9,108,115 | 26,197,042 | ||||||
A Class | 3,860 | 1,378 | ||||||
C Class | 671 | 579 | ||||||
Net asset value, offering and redemption price per share: | ||||||||
Institutional Class | $ | 15.51 | $ | 18.43 | ||||
Y Class | $ | 15.62 | $ | 19.10 | ||||
Investor Class | $ | 15.27 | $ | 18.26 | ||||
Advisor Class | N/A | $ | 18.78 | |||||
Retirement Class | N/A | $ | 18.68 | |||||
AMR Class | $ | 15.61 | $ | 18.45 | ||||
A Class (net asset value and redemption price) | $ | 15.30 | $ | 18.53 | ||||
A Class (offering price) | $ | 16.23 | $ | 19.66 | ||||
C Class | $ | 15.24 | $ | 18.47 | ||||
A Cost of investments in unaffiliated securities | $ | 141,245 | $ | 1,285,813 | ||||
B Cost of investments in affiliated securities | $ | — | $ | 72,228 | ||||
C Cost of foreign currency | $ | 1,090 | $ | 1,986 | ||||
D Market value of securities on loan | $ | — | $ | 75,812 |
See accompanying notes
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American Beacon Funds
Statements of Operations
Six Months Ended April 30, 2011 (Unaudited) (in thousands)
Statements of Operations
Six Months Ended April 30, 2011 (Unaudited) (in thousands)
Emerging | International | |||||||
Markets Fund | Equity Fund | |||||||
Investment Income: | ||||||||
Dividend income from unaffiliated securities (net of foreign taxes) A | $ | 1,600 | $ | 21,893 | ||||
Interest income | 4 | 12 | ||||||
Income derived from securities lending, net | — | 243 | ||||||
Total investment income | 1,604 | 22,148 | ||||||
Expenses: | ||||||||
Management and investment advisory fees (Note 2) | 622 | 2,323 | ||||||
Administrative service fees (Note 2): | ||||||||
Institutional Class | 15 | 811 | ||||||
Y Class | 7 | 1 | ||||||
Investor Class | 19 | 708 | ||||||
Advisor Class | — | 2 | ||||||
AMR Class | 35 | 115 | ||||||
Transfer agent fees: | ||||||||
Institutional Class | — | 18 | ||||||
Y Class | 2 | — | ||||||
Investor Class | 1 | 19 | ||||||
AMR Class | 4 | 13 | ||||||
A Class | 2 | 2 | ||||||
C Class | 2 | 2 | ||||||
Custody and fund accounting fees | 321 | 307 | ||||||
Professional fees | 18 | 52 | ||||||
Registration fees and expenses | 37 | 67 | ||||||
Service fees (Note 2): | ||||||||
Y Class | 2 | — | ||||||
Investor Class | 15 | 848 | ||||||
Advisor Class | — | 2 | ||||||
Distribution fees (Note 2): | ||||||||
Advisor Class | — | 2 | ||||||
Prospectus and shareholder reports | 10 | 88 | ||||||
Trustee fees | 5 | 52 | ||||||
Other expenses | 18 | 93 | ||||||
Total expenses | 1,135 | 5,525 | ||||||
Net (fees waived and expenses reimbursed) (Note 2) | (21 | ) | (3 | ) | ||||
Net expenses | 1,114 | 5,522 | ||||||
Net investment income | 490 | 16,626 | ||||||
Realized and unrealized gain (loss) on investments: | ||||||||
Net realized gain (loss) from: B | ||||||||
Investments | 15,922 | 28,287 | ||||||
Commission recapture (Note 1) | — | 28 | ||||||
Foreign currency transactions | 1,857 | 24,835 | ||||||
Futures contracts | 1,001 | 4,817 | ||||||
Change in net unrealized appreciation or depreciation of: | ||||||||
Investments | (9,571 | ) | 70,409 | |||||
Foreign currency translations | 2,030 | 45,870 | ||||||
Futures contracts | (184 | ) | 542 | |||||
Net gain on investments | 11,055 | 174,788 | ||||||
Net increase in net assets resulting from operations | $ | 11,545 | $ | 191,414 | ||||
A Foreign taxes | $ | 166 | $ | 1,842 | ||||
B Net of foreign withholding taxes on capital gains | $ | — | $ | — |
See accompanying notes
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American Beacon Funds
Statements of Changes in Net Assets (in thousands)
Statements of Changes in Net Assets (in thousands)
Emerging Markets Fund | International Equity Fund | |||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
April 30, 2011 | October 31, 2010 | April 30, 2011 | October 31, 2010 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 490 | $ | 1,026 | $ | 16,626 | $ | 29,764 | ||||||||
Net realized gain on investments, futures contracts, and foreign currency transactions | 18,780 | 19,496 | 57,967 | 35,831 | ||||||||||||
Change in net unrealized appreciation or depreciation of investments, futures contracts, and foreign currency translations | (7,725 | ) | 8,049 | 116,821 | 81,056 | |||||||||||
Net increase in net assets resulting from operations | 11,545 | 28,571 | 191,414 | 146,651 | ||||||||||||
Distributions to Shareholders: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Institutional Class | (85 | ) | (130 | ) | (14,155 | ) | (15,298 | ) | ||||||||
Y Class | — | — | (7 | ) | — | |||||||||||
Investor Class | (43 | ) | (131 | ) | (8,721 | ) | (12,702 | ) | ||||||||
Advisor Class | — | — | (13 | ) | — | |||||||||||
AMR Class | (942 | ) | (1,717 | ) | (15,008 | ) | (14,360 | ) | ||||||||
Net distributions to shareholders | (1,070 | ) | (1,978 | ) | (37,904 | ) | (42,360 | ) | ||||||||
Capital Share Transactions: | ||||||||||||||||
Proceeds from sales of shares | 35,245 | 19,983 | 119,113 | 253,975 | ||||||||||||
Reinvestment of dividends and distributions | 1,067 | 1,969 | 35,604 | 39,420 | ||||||||||||
Cost of shares redeemed | (27,259 | ) | (27,910 | ) | (182,906 | ) | (304,686 | ) | ||||||||
Redemption fees | 22 | 36 | 29 | 177 | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | 9,075 | (5,922 | ) | (28,160 | ) | (11,114 | ) | |||||||||
Net increase in net assets | 19,550 | 20,671 | 125,350 | 93,177 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 150,358 | 129,687 | 1,461,833 | 1,368,656 | ||||||||||||
End of Period * | $ | 169,908 | $ | 150,358 | $ | 1,587,183 | $ | 1,461,833 | ||||||||
* Includes undistributed net investment income (loss) of | $ | (118 | ) | $ | 408 | $ | 19,050 | $ | 32,347 | |||||||
See accompanying notes
21
Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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 | |
A Class | General public and investors investing through an intermediary with applicable sales charges | |
C Class | General public and investors investing through an intermediary with applicable sales charges | |
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 fair value.
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American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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”).
Futures are values based upon the last sale price at the close of market on the principal exchange on which they are traded.
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.
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. During the period there were no significant transfers between levels. As of April 30, 2011 the Funds’ investments were classified as follows: (in thousands)
Emerging Markets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 156,925 | $ | — | $ | — | $ | 156,925 | ||||||||
Preferred Stocks | 5,596 | — | — | 5,596 | ||||||||||||
Short Term Investments | 4,185 | — | — | 4,185 | ||||||||||||
Total Investments in Securities | $ | 166,706 | $ | — | $ | — | $ | 166,706 | ||||||||
Futures Contracts | 208 | — | — | 208 |
International Equity | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 1,532,320 | $ | — | $ | — | $ | 1,532,320 | ||||||||
Short Term Investments | 36,307 | — | — | 36,307 | ||||||||||||
Securities Lending Collateral | 79,228 | — | — | 79,228 | ||||||||||||
Total Investments in Securities | $ | 1,647,855 | $ | — | $ | — | $ | 1,647,855 | ||||||||
Forward Exchange Contracts — Assets | $ | 2,288 | $ | — | $ | — | $ | 2,288 | ||||||||
Forward Exchange Contracts — Liabilities | (478 | ) | — | — | (478 | ) | ||||||||||
Futures Contracts | 1,382 | 1,382 |
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Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
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 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.
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Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
Emerging Markets
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2011 (in thousands)
Liability | ||||||
Statement of Assets and Liabilities | Derivatives | Fair Value | ||||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* | $ | 208 |
Effect of derivative instruments not accounted for as hedging instruments during the year ended April 30, 2011 (in thousands)
Statement of Operations | Derivative | Fair Value | ||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 1,001 | |||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | (184 | ) |
International Equity
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2011 (in thousands)
Statement of Assets and Liabilities | Asset Derivatives | Fair Value | ||||
Foreign Exchange | ||||||
Net unrealized appreciation on foreign currency contracts | Currency Contracts | $ | 2,288 | |||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* | 1,382 |
Liability Derivatives | Fair Value | |||||
Foreign Exchange | ||||||
Net unrealized appreciation on foreign currency contracts | Currency Contracts | $ | (478 | ) |
Effect of derivative instruments not accounted for as hedging instruments during the year ended April 30, 2011 (in thousands)
Statement of Operations | Derivative | Fair Value | ||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 4,817 | |||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | 542 |
* | 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.
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Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
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 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, fund 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, 2011 were as follows (dollars in thousands):
Amounts paid to | Net Amounts | |||||||||||||||
Management | Management | Investment | Retained by | |||||||||||||
Fee Rate | Fee | Advisors | Manager | |||||||||||||
Emerging Markets | 0.60%-0.95 | % | $ | 622 | $ | 581 | $ | 41 | ||||||||
International Equity | 0.20%-0.55 | % | $ | 2,323 | $ | 1,955 | $ | 368 |
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, 2011 securities lending fees paid to the Manager on behalf of the International Equity Fund were $67,822.36.
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
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Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
required under the Administrative Services Agreement, the Manager receives an annualized fee of 0.40% of the average daily net assets of the A and C Classes, 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. Administrative service fees for Retirement, A, and C Classes for the six months ended April 30, 2011 were less than $500.
Distribution Plans
The Funds, except for the Advisor, Retirement, A and C 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.
Separate Distribution Plans (the “Distribution Plans”) has been adopted pursuant to Rule 12b-1 under the Act for the Advisor and Retirement Classes of the Funds. Under the Distribution Plans, as compensation for distribution assistance, the Manager receives an annual fee of 0.25% of the average daily net assets of the Advisor and A Classes, 0.50% of the average daily net assets of the Retirement Class and 1.00% of the average daily net assets of the C 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. Distribution fees for the Retirement, A and C Classes for the six months ended April 30, 2011 were less than $500.
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, 0.15% of the average daily net assets of the A and C Classes, 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. Service fees for the Retirement, A and C Classes for the six months ended April 30, 2011 were less than $500.
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, 2011, 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 | $ | 1,753 | $ | 9,854 | $ | 11,607 |
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
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Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
allowing the Funds to borrow from other participating Funds. For the six months ended April 30, 2011, the Emerging Markets Fund borrowed from the Money Market Select Fund on average $1,121,201 for 2 days at an average rate of 0.82% with an interest charge of $50. The International Equity Fund did not utilize the credit facility during the period.
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, 2011, the Manager reimbursed expenses as follows:
Expense Cap | ||||||||||
11/1/10 | 3/1/11 | Waived or | ||||||||
to | to | Reimbursed | ||||||||
Fund | Class | 2/28/11 | 4/30/11 | Expenses | ||||||
Emerging Markets | Institutional | 1.35% | 1.35% | $ | 9,699 | |||||
Emerging Markets | Y | 1.45% | 1.45% | 6,824 | ||||||
Emerging Markets | Investor | 1.79% | 1.79% | 1,689 | ||||||
Emerging Markets | A | 1.79% | 1.79% | 1,690 | ||||||
Emerging Markets | C | 2.54% | 2.54% | 1,652 | ||||||
International Equity | A | — | 1.25% | 1,657 | ||||||
International Equity | C | — | 1.99% | 1,649 |
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, 2011, there were no additional waived fees or reimbursed expenses subject to potential recovery.
3. Federal Income and Excise Taxes
It is the policy of each Fund to for qualify as a regulated investment company, by complying with all applicable provision of the Code, and to make distribution of taxable income sufficient to relieve it from substantially all federal income and excise taxes. For federal income tax purposes, each Fund is treated as a single entity for the purpose of determining such qualification.
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, 2010 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, 2011 and the year ended October 31, 2010 were as follows (in thousands):
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Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
Emerging Markets | International Equity | |||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
April 30, | October 31, | April 30, | October 31, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Distributions paid from: | ||||||||||||||||
Ordinary income* | ||||||||||||||||
Institutional Class | $ | 85 | $ | 130 | $ | 14,155 | $ | 15,298 | ||||||||
Y Class | — | — | 7 | — | ||||||||||||
Investor Class | 43 | 131 | 8,721 | 12,702 | ||||||||||||
Advisor Class | — | — | 13 | — | ||||||||||||
AMR Class | 942 | 1,717 | 15,008 | 14,360 | ||||||||||||
A Class | — | — | — | — | ||||||||||||
C Class | — | — | — | — | ||||||||||||
Total distributions paid | $ | 1,070 | $ | 1,978 | $ | 37,904 | $ | 42,360 | ||||||||
* | For tax purposes, short-term capital gains are considered ordinary income distributions. |
As of April 30, 2011, the components of distributable earnings on a tax basis were as follows (in thousands):
Emerging Markets | International Equity | |||||||
Cost basis of investments for federal income tax purposes | $ | 147,548 | $ | 1,381,402 | ||||
Unrealized appreciation | 26,607 | 328,775 | ||||||
Unrealized depreciation | (7,449 | ) | (62,322 | ) | ||||
Net unrealized appreciation | 19,158 | 266,453 | ||||||
Undistributed ordinary income | 489 | 22,857 | ||||||
Undistributed long-term gain | 12,372 | (156,603 | ) | |||||
Other temporary differences | 232 | 4,857 | ||||||
Distributable earnings | $ | 32,251 | $ | 137,564 | ||||
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 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, 2011 (in thousands):
Emerging Markets | International Equity | |||||||
Paid-in-capital | $ | (1 | ) | $ | 210 | |||
Undistributed net investment income | 54 | 7,981 | ||||||
Accumulated net realized gain (loss) | (63 | ) | (8,191 | ) | ||||
Unrealized depreciation of investments, futures contracts and foreign currency | — | — |
At April 30, 2011, the capital loss carry forward position for federal income tax purposes was $155,221 for the International Equity Fund expiring in 2017.
29
Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
The Emerging Markets and International Equity Funds utilized $3,608 and $40,856, respectively of net capital loss carryovers for the six months ended April 30, 2011.
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, 2011 were (in thousands):
Emerging | International | |||||||
Markets | Equity | |||||||
Purchases | $ | 119,615 | $ | 288,194 | ||||
Sales and maturities | $ | 109,444 | $ | 321,053 |
A summary of the Funds’ direct transactions in the Select Funds for the six months ended April 30, 2011 is set forth below (in thousands):
October 31, 2010 | April 30, 2011 | |||||||||||||||||||
Affiliated Fund | Shares/Market Value | Purchases | Sales | Shares/Market Value | ||||||||||||||||
International Equity | USG Select Fund | $ | 4,370 | 337,585 | $ | 269,727 | $ | 72,228 |
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 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 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, 2011, the value of outstanding securities on loan and the value of collateral was as follows (in thousands):
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Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
Market Value of Securities on Loan | Non-Cash Collateral | Cash Collateral Posted by Borrower | ||
$75,812 | $ — | $79,228 |
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, 2011
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Emerging Markets Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 101 | $ | 1,489 | 375 | $ | 5,536 | 134 | $ | 1,954 | |||||||||||||||
Reinvestment of dividends | 5 | 84 | — | — | 3 | 41 | ||||||||||||||||||
Shares redeemed | (139 | ) | (2,001 | )* | (14 | ) | (206 | )* | (168 | ) | (2,436 | )* | ||||||||||||
Net increase (decrease) in shares outstanding | (33 | ) | $ | (428 | ) | 361 | $ | 5,330 | (31 | ) | $ | (441 | ) | |||||||||||
AMR Class | A Class | C Class | ||||||||||||||||||||||
Emerging Markets Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 1,764 | $ | 26,204 | 4 | $ | 54 | 1 | $ | 8 | |||||||||||||||
Reinvestment of dividends | 63 | 942 | — | — | — | — | ||||||||||||||||||
Shares redeemed | (1,534 | ) | (22,594 | )* | — | — | * | — | — | * | ||||||||||||||
Net increase (decrease) in shares outstanding | 293 | $ | 4,552 | 4 | $ | 54 | 1 | $ | 8 | |||||||||||||||
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
International Equity Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | 2,837 | $ | 48,280 | 22 | $ | 399 | 3,250 | $ | 55,146 | 58 | $ | 986 | ||||||||||||||||||||
Reinvestment of dividends | 732 | 11,984 | — | 7 | 529 | 8,593 | 1 | 13 | ||||||||||||||||||||||||
Shares redeemed | (3,431 | ) | (58,666 | )* | — | (7 | )* | (3,796 | ) | (64,100 | )* | (17 | ) | (300 | )* | |||||||||||||||||
Net increase (decrease) in shares outstanding | 138 | $ | 1,598 | 22 | $ | 399 | (17 | ) | $ | (361 | ) | 42 | $ | 699 | ||||||||||||||||||
Retirement Class | AMR Class | A Class | C Class | |||||||||||||||||||||||||||||
International Equity Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | — | $ | — | 833 | $ | 14,274 | 1 | $ | 19 | 1 | $ | 9 | ||||||||||||||||||||
Reinvestment of dividends | — | — | 917 | 15,007 | — | — | — | — | ||||||||||||||||||||||||
Shares redeemed | — | — | (3,532 | ) | (59,804 | )* | — | — | * | — | — | * | ||||||||||||||||||||
Net increase (decrease) in shares outstanding | — | $ | — | (1,782 | ) | $ | (30,523 | ) | 1 | $ | 19 | 1 | $ | 9 | ||||||||||||||||||
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Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
Year Ended October 31, 2010
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Emerging Markets Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 76 | $ | 969 | 1 | $ | 11 | 344 | $ | 4,388 | |||||||||||||||
Reinvestment of dividends | 10 | 125 | — | — | 10 | 127 | ||||||||||||||||||
Shares redeemed | (260 | ) | (3,540 | )* | — | — | * | (348 | ) | (4,368 | )* | |||||||||||||
Net increase (decrease) in shares outstanding | (174 | ) | $ | (2,446 | ) | 1 | $ | 11 | 6 | $ | 147 | |||||||||||||
AMR Class | A Class | C Class | ||||||||||||||||||||||
Emerging Markets Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 1,102 | $ | 14,612 | — | $ | 2 | — | $ | 1 | |||||||||||||||
Reinvestment of dividends | 137 | 1,717 | — | — | — | — | ||||||||||||||||||
Shares redeemed | (1,572 | ) | (19,966 | )* | — | — | * | — | — | * | ||||||||||||||
Net increase (decrease) in shares outstanding | (333 | ) | $ | (3,637 | ) | — | $ | 2 | — | $ | 1 | |||||||||||||
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
International Equity Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | 5,496 | $ | 83,841 | 15 | $ | 227 | 7,001 | $ | 105,328 | 20 | $ | 300 | ||||||||||||||||||||
Reinvestment of dividends | 802 | 12,580 | — | — | 806 | 12,480 | — | — | ||||||||||||||||||||||||
Shares redeemed | (6,209 | ) | (96,106 | )* | (1 | ) | (9 | )* | (8,688 | ) | (132,955 | )* | (89 | ) | (1,424 | )* | ||||||||||||||||
Net increase (decrease) in shares outstanding | 89 | $ | 315 | 14 | $ | 218 | (881 | ) | $ | (15,147 | ) | (69 | ) | $ | (1,124 | ) | ||||||||||||||||
Retirement Class | AMR Class | A Class | C Class | |||||||||||||||||||||||||||||
International Equity Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | — | $ | — | 4,214 | $ | 64,274 | — | $ | 4 | — | $ | 1 | ||||||||||||||||||||
Reinvestment of dividends | — | — | 912 | 14,360 | — | — | — | — | ||||||||||||||||||||||||
Shares redeemed | — | — | * | (4,789 | ) | (74,015 | )* | — | — | * | — | — | * | |||||||||||||||||||
Net increase (decrease) in shares outstanding | — | $ | — | 337 | $ | 4,619 | — | $ | 4 | — | $ | 1 | ||||||||||||||||||||
* | Net of Redemption Fees |
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33
Table of Contents
American Beacon Emerging Markets Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
Y Class | ||||||||||||||||||||||||||||||||
Institutional Class | Six Months Ended | March 01 to | ||||||||||||||||||||||||||||||
Six Months Ended | Year Ended October 31, | April 30, | October 31, | |||||||||||||||||||||||||||||
April 30, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2011 | 2010 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.55 | $ | 11.95 | $ | 9.00 | $ | 24.20 | $ | 17.42 | $ | 15.10 | $ | 14.53 | $ | 12.29 | ||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.03 | 0.13 | 0.05 | 0.23 | 0.26 | 0.11 | 0.00 | 0.04 | ||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 1.06 | 2.63 | 4.42 | (11.78 | ) | 9.11 | 4.63 | 1.09 | 2.20 | |||||||||||||||||||||||
Total income (loss) from investment operations | 1.09 | 2.76 | 4.47 | (11.55 | ) | 9.37 | 4.74 | 1.09 | 2.24 | |||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.13 | ) | (0.16 | ) | (0.21 | ) | (0.10 | ) | (0.10 | ) | (0.21 | ) | — | — | ||||||||||||||||||
Distributions from net realized gains on securities | — | — | (1.31 | ) | (3.55 | ) | (2.49 | ) | (2.21 | ) | — | — | ||||||||||||||||||||
Total distributions | (0.13 | ) | (0.16 | ) | (1.52 | ) | (3.65 | ) | (2.59 | ) | (2.42 | ) | — | — | ||||||||||||||||||
Redemption fees added to beneficial interests | — | A | — | A | — | — | — | — | — | A | — | A | ||||||||||||||||||||
Net asset value, end of period | $ | 15.51 | $ | 14.55 | $ | 11.95 | $ | 9.00 | $ | 24.20 | $ | 17.42 | $ | 15.62 | $ | 14.53 | ||||||||||||||||
Total return B,C | 7.50 | %D | 23.36 | % | 60.56 | % | (55.59 | )% | 60.83 | % | 34.58 | % | 7.50 | %D | 18.23 | %D | ||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 9,109 | $ | 9,023 | $ | 9,494 | $ | 5,478 | $ | 13,773 | $ | 16,552 | $ | 5,654 | $ | 13 | ||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||
Expenses, net of waivers | 1.35 | % | 1.39 | % | 1.66 | % | 1.38 | % | 1.60 | % | 1.56 | % | 1.45 | % | 1.42 | %E | ||||||||||||||||
Expenses, before waivers | 1.55 | % | 1.58 | % | 1.66 | % | 1.38 | % | 1.60 | % | 1.56 | % | 1.73 | % | 1.82 | %E | ||||||||||||||||
Net investment income (loss), net of waivers | 0.52 | % | 0.77 | % | 0.95 | % | 1.35 | % | 0.93 | % | 0.80 | % | 0.56 | % | 0.79 | %E | ||||||||||||||||
Net investment income (loss), before waivers | 0.32 | % | 0.58 | % | 0.95 | % | 1.35 | % | 0.93 | % | 0.80 | % | 0.28 | % | 0.40 | %E | ||||||||||||||||
Portfolio turnover rate | 70 | %D | 64 | % | 70 | % | 82 | % | 81 | % | 67 | % | 70 | %D | 64 | %F |
A | Amounts represent less than $0.01 per share. | |
B | May include adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. | |
C | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
D | Not annualized. | |
E | Annualized. | |
F | Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010. | |
G | At the close of business on December 31, 2010, Brandes Investment Partners, L.P. began managing assets of the Fund. |
34
Table of Contents
A Class | C Class | |||||||||||||||||||||||||||||||||||||||
Investor Class | Six Months | May 17 | Six Months | September 01 | ||||||||||||||||||||||||||||||||||||
Six Months Ended | Year Ended October 31, | Ended | to | Ended | to | |||||||||||||||||||||||||||||||||||
April 30, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | April 30, 2011 | October 31, 2010 | April 30, 2011 | October 31, 2010 | |||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
$ | 14.29 | $ | 11.77 | $ | 8.85 | $ | 23.91 | $ | 17.22 | $ | 14.98 | $ | 14.27 | $ | 12.10 | $ | 14.26 | $ | 12.89 | |||||||||||||||||||||
0.01 | 0.04 | 0.04 | 0.17 | 0.11 | 0.09 | 0.02 | 0.02 | 0.02 | (0.02 | ) | ||||||||||||||||||||||||||||||
1.02 | 2.63 | 4.35 | (11.60 | ) | 9.11 | 4.55 | 1.02 | 2.15 | 0.96 | 1.39 | ||||||||||||||||||||||||||||||
1.03 | 2.67 | 4.39 | (11.43 | ) | 9.22 | 4.64 | 1.04 | 2.17 | 0.98 | 1.37 | ||||||||||||||||||||||||||||||
(0.05 | ) | (0.15 | ) | (0.16 | ) | (0.08 | ) | (0.04 | ) | (0.19 | ) | (0.01 | ) | — | — | — | ||||||||||||||||||||||||
— | — | (1.31 | ) | (3.55 | ) | (2.49 | ) | (2.21 | ) | — | — | — | — | |||||||||||||||||||||||||||
(0.05 | ) | (0.15 | ) | (1.47 | ) | (3.63 | ) | (2.53 | ) | (2.40 | ) | (0.01 | ) | — | — | — | ||||||||||||||||||||||||
— | A | — | A | — | — | — | — | — | A | — | A | — | A | — | A | |||||||||||||||||||||||||
$ | 15.27 | $ | 14.29 | $ | 11.77 | $ | 8.85 | $ | 23.91 | $ | 17.22 | $ | 15.30 | $ | 14.27 | $ | 15.24 | $ | 14.26 | |||||||||||||||||||||
7.23 | %D | 22.85 | % | 60.24 | % | (55.75 | )% | 60.38 | % | 34.01 | % | 7.33 | %D | 17.93 | %D | 6.87 | %D | 10.63 | %D | |||||||||||||||||||||
$ | 12,865 | $ | 12,478 | $ | 10,208 | $ | 5,183 | $ | 11,694 | $ | 5,841 | $ | 59 | $ | 2 | $ | 10 | $ | 1 | |||||||||||||||||||||
1.79 | % | 1.77 | % | 1.96 | % | 1.72 | % | 1.96 | % | 2.04 | % | 1.75 | % | 1.78 | %E | 2.54 | % | 2.54 | %E | |||||||||||||||||||||
1.82 | % | 1.86 | % | 1.96 | % | 1.72 | % | 1.96 | % | 1.91 | % | 24.45 | % | 2.26 | %E | 69.90 | % | 4.49 | %E | |||||||||||||||||||||
0.15 | % | 0.37 | % | 0.65 | % | 1.00 | % | 0.65 | % | 0.49 | % | 1.80 | % | 0.39 | %E | 0.10 | % | (0.96) | %E | |||||||||||||||||||||
0.13 | % | 0.29 | % | 0.65 | % | 1.00 | % | 0.65 | % | 0.62 | % | (20.90 | )% | (0.10) | %E | (67.26 | )% | (2.91) | %E | |||||||||||||||||||||
70 | %D | 64 | % | 70 | % | 82 | % | 81 | % | 67 | % | 70 | %D | 64 | %F | 70 | %D | 64 | %F |
35
Table of Contents
American Beacon Emerging Markets Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
AMR Class | ||||||||||||||||||||||||
Six Months Ended | Year Ended October 31, | |||||||||||||||||||||||
April 30, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.62 | $ | 12.02 | $ | 9.06 | $ | 24.37 | $ | 17.52 | $ | 15.17 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.04 | 0.11 | 0.09 | 0.33 | 0.19 | 0.15 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 1.04 | 2.68 | 4.43 | (11.91 | ) | 9.30 | 4.65 | |||||||||||||||||
Total income (loss) from investment operations | 1.08 | 2.79 | 4.52 | (11.58 | ) | 9.49 | 4.80 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Dividends from net investment income | (0.09 | ) | (0.19 | ) | (0.25 | ) | (0.18 | ) | (0.15 | ) | (0.24 | ) | ||||||||||||
Distributions from net realized gains on securities | — | — | (1.31 | ) | (3.55 | ) | (2.49 | ) | (2.21 | ) | ||||||||||||||
Total distributions | (0.09 | ) | (0.19 | ) | (1.56 | ) | (3.73 | ) | (2.64 | ) | (2.45 | ) | ||||||||||||
Redemption fees added to beneficial interests | — | A | — | A | — | — | — | — | ||||||||||||||||
Net asset value, end of period | $ | 15.61 | $ | 14.62 | $ | 12.02 | $ | 9.06 | $ | 24.37 | $ | 17.52 | ||||||||||||
Total return B,C | 7.45 | %D | 23.47 | % | 61.01 | % | (55.48 | )% | 61.28 | % | 34.88 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 142,211 | $ | 128,841 | $ | 109,985 | $ | 72,516 | $ | 271,726 | $ | 135,146 | ||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||
Expenses, net of waivers | 1.30 | % | 1.34 | % | 1.42 | % | 1.17 | % | 1.37 | % | 1.30 | % | ||||||||||||
Expenses, before waivers | 1.30 | % | 1.34 | % | 1.42 | % | 1.17 | % | 1.37 | % | 1.30 | % | ||||||||||||
Net investment income (loss), net of waivers | 0.64 | % | 0.79 | % | 1.27 | % | 1.46 | % | 1.25 | % | 1.01 | % | ||||||||||||
Net investment income (loss), before waivers | 0.64 | % | 0.79 | % | 1.27 | % | 1.46 | % | 1.25 | % | 1.01 | % | ||||||||||||
Portfolio turnover rate | 70 | %D | 64 | % | 70 | % | 82 | % | 81 | % | 67 | % |
A | Amounts represent less than $0.01 per share. | |
B | May include adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. | |
C | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
D | Not annualized. | |
E | Annualized. | |
F | Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010. | |
G | At the close of business on December 31, 2010, Brandes Investment Partners, L.P. began managing assets of the Fund |
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American Beacon International Equity Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | |||||||||||||||||||||||||||
Six Months Ended | Year Ended October 31, | Six Months Ended | ||||||||||||||||||||||||||
April 30, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | April 30, 2011 | ||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.67 | $ | 15.51 | $ | 13.13 | $ | 27.32 | $ | 24.68 | $ | 20.98 | $ | 17.17 | ||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||
Net investment incomeA,B | 0.20 | 0.35 | 0.54 | 0.77 | 0.65 | 0.60 | 0.26 | |||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized)A | 2.01 | 1.30 | 2.78 | (11.60 | ) | 4.31 | 4.86 | 2.01 | ||||||||||||||||||||
Total income (loss) from investment operations | 2.21 | 1.65 | 3.32 | (10.83 | ) | 4.96 | 5.46 | 2.27 | ||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.45 | ) | (0.49 | ) | (0.61 | ) | (0.70 | ) | (0.50 | ) | (0.43 | ) | (0.34 | ) | ||||||||||||||
Distributions from net realized gains on securities | — | — | (0.33 | ) | (2.66 | ) | (1.82 | ) | (1.33 | ) | — | |||||||||||||||||
Total distributions | (0.45 | ) | (0.49 | ) | (0.94 | ) | (3.36 | ) | (2.32 | ) | (1.76 | ) | (0.34 | ) | ||||||||||||||
Redemption fees added to beneficial interestC | — | — | 0.00 | 0.00 | 0.00 | 0.00 | — | |||||||||||||||||||||
Net asset value, end of period | $ | 18.43 | $ | 16.67 | $ | 15.51 | $ | 13.13 | $ | 27.32 | $ | 24.68 | $ | 19.10 | ||||||||||||||
Total return D,E | 13.58 | %F | 10.81 | % | 27.44 | % | (44.81 | )% | 21.54 | % | 27.55 | % | 13.49 | %F | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 586,018 | $ | 527,718 | $ | 489,837 | $ | 567,414 | $ | 1,686,668 | $ | 1,549,521 | $ | 699 | ||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||
Expenses, net of waiversA | 0.71 | % | 0.71 | % | 0.73 | % | 0.66 | % | 0.67 | % | 0.71 | % | 0.82 | % | ||||||||||||||
Expenses, before waiversA | 0.71 | % | 0.71 | % | 0.73 | % | 0.66 | % | 0.67 | % | 0.71 | % | 0.82 | % | ||||||||||||||
Net investment income, net of waiversA | 2.30 | % | 2.21 | % | 2.76 | % | 2.91 | % | 2.46 | % | 2.52 | % | 2.60 | % | ||||||||||||||
Net investment income (loss), before waiversA | 2.30 | % | 2.21 | % | 2.76 | % | 2.91 | % | 2.46 | % | 2.52 | % | 2.60 | % | ||||||||||||||
Portfolio turnover rateG | 20 | %F | 38 | % | 41 | % | 31 | % | 38 | % | 40 | % | 20 | %F |
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 | May include adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. | |
E | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
F | Not annualized. | |
G | 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. | |
H | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. |
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Investor Class | ||||||||||||||||||||||||||||||||
August 03 to | Six Months Ended | Year Ended October 31, | ||||||||||||||||||||||||||||||
2010 | October 31, 2009 | April 30, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
$ | 15.52 | $ | 14.89 | $ | 16.42 | $ | 15.30 | $ | 12.95 | $ | 26.99 | $ | 24.42 | $ | 20.79 | |||||||||||||||||
0.04 | 0.04 | 0.17 | 0.29 | 0.37 | 0.66 | 0.58 | 0.50 | |||||||||||||||||||||||||
1.61 | 0.59 | 1.98 | 1.27 | 2.87 | (11.41 | ) | 4.26 | 4.84 | ||||||||||||||||||||||||
1.65 | 0.63 | 2.15 | 1.56 | 3.24 | (10.75 | ) | 4.84 | 5.34 | ||||||||||||||||||||||||
— | — | (0.31 | ) | (0.44 | ) | (0.56 | ) | (0.63 | ) | (0.45 | ) | (0.38 | ) | |||||||||||||||||||
— | — | — | — | (0.33 | ) | (2.66 | ) | (1.82 | ) | (1.33 | ) | |||||||||||||||||||||
— | — | (0.31 | ) | (0.44 | ) | (0.89 | ) | (3.29 | ) | (2.27 | ) | (1.71 | ) | |||||||||||||||||||
— | 0.00 | — | — | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||
$ | 17.17 | $ | 15.52 | $ | 18.26 | $ | 16.42 | $ | 15.30 | $ | 12.95 | $ | 26.99 | $ | 24.42 | |||||||||||||||||
10.63 | % | 4.23 | % | 13.35 | %F | 10.36 | % | 27.08 | % | (44.96 | )% | 21.22 | % | 27.20 | % | |||||||||||||||||
$ | 245 | $ | 1 | $ | 515,554 | $ | 463,704 | $ | 445,596 | $ | 426,473 | $ | 909,385 | $ | 771,298 | |||||||||||||||||
0.81 | % | 0.69 | % | 1.07 | % | 1.07 | % | 1.05 | % | 0.92 | % | 0.93 | % | 0.96 | % | |||||||||||||||||
0.81 | % | 0.69 | % | 1.07 | % | 1.07 | % | 1.05 | % | 0.92 | % | 0.93 | % | 0.96 | % | |||||||||||||||||
1.44 | % | 1.00 | % | 1.95 | % | 1.83 | % | 2.45 | % | 2.82 | % | 2.26 | % | 2.25 | % | |||||||||||||||||
1.44 | % | 1.00 | % | 1.95 | % | 1.83 | % | 2.45 | % | 2.82 | % | 2.26 | % | 2.25 | % | |||||||||||||||||
38 | % | 41 | %H | 20 | %F | 38 | % | 41 | % | 31 | % | 38 | % | 40 | % |
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American Beacon International Equity Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
Advisor Class | Retirement Class | |||||||||||||||||||||||||||||||
Six Months Ended | Year Ended October 31, | Six Months Ended | ||||||||||||||||||||||||||||||
April 30, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | April 30, 2011 | 2010 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.74 | $ | 15.20 | $ | 12.86 | $ | 26.83 | $ | 24.24 | $ | 20.61 | $ | 16.71 | $ | 15.20 | ||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss)A,B | (0.45 | ) | 0.89 | 0.31 | 0.62 | 0.56 | 0.46 | 0.15 | 0.22 | |||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized)A | 2.66 | 0.65 | 2.86 | (11.35 | ) | 4.20 | 4.76 | 2.04 | 1.29 | |||||||||||||||||||||||
Total income (loss) from investment operations | 2.21 | 1.54 | 3.17 | (10.73 | ) | 4.76 | 5.22 | 2.19 | 1.51 | |||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.17 | ) | — | (0.50 | ) | (0.58 | ) | (0.35 | ) | (0.26 | ) | (0.22 | ) | — | ||||||||||||||||||
Distributions from net realized gains on securities | — | — | (0.33 | ) | (2.66 | ) | (1.82 | ) | (1.33 | ) | — | — | ||||||||||||||||||||
Total distributions | (0.17 | ) | — | (0.83 | ) | (3.24 | ) | (2.17 | ) | (1.59 | ) | (0.22 | ) | — | ||||||||||||||||||
Redemption fees added to beneficial interestC | — | — | 0.00 | 0.00 | 0.00 | 0.00 | — | — | ||||||||||||||||||||||||
Net asset value, end of period | $ | 18.78 | $ | 16.74 | $ | 15.20 | $ | 12.86 | $ | 26.83 | $ | 24.24 | $ | 18.68 | $ | 16.71 | ||||||||||||||||
Total return D,E | 13.32 | %F | 10.13 | % | 26.58 | % | (45.10 | )% | 21.00 | % | 26.73 | % | 13.28 | %F | 9.93 | % | ||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,618 | $ | 746 | $ | 1,722 | $ | 1,546 | $ | 4,932 | $ | 4,740 | $ | 2 | $ | 1 | ||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||
Expenses, net of waiversA | 1.23 | % | 1.26 | % | 1.44 | % | 1.19 | % | 1.12 | % | 1.16 | % | 1.28 | % | 1.47 | % | ||||||||||||||||
Expenses, before waiversA | 1.23 | % | 1.26 | % | 1.45 | % | 1.19 | % | 1.15 | % | 1.19 | % | 1.28 | % | 1.66 | % | ||||||||||||||||
Net investment income, net of waiversA | 1.90 | % | 1.64 | % | 2.26 | % | 2.36 | % | 2.04 | % | 2.09 | % | 1.74 | % | 1.44 | % | ||||||||||||||||
Net investment income (loss), before waiversA | 1.90 | % | 1.64 | % | 2.25 | % | 2.36 | % | 2.01 | % | 2.05 | % | 1.74 | % | 1.25 | % | ||||||||||||||||
Portfolio turnover rateH | 20 | %F | 38 | % | 41 | % | 31 | % | 38 | % | 40 | % | 20 | %F | 38 | % |
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 | May include adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. | |
E | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
F | Not annualized. | |
G | Annualized. | |
H | 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. | |
I | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. |
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AMR Class | A Class | C Class | ||||||||||||||||||||||||||||||||||||||||
May 01 to | Six | Six | May | Six | September | |||||||||||||||||||||||||||||||||||||
October 31, | Months Ended | Year Ended October 31, | Months Ended | 17 to October | Months Ended | 01 to October 31, | ||||||||||||||||||||||||||||||||||||
2009 | April 30, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | April 30, 2011 | 31, 2010 | April 30, 2011 | 2010 | ||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||
$ | 11.78 | $ | 16.78 | $ | 15.61 | $ | 13.25 | $ | 27.54 | $ | 24.86 | $ | 21.12 | $ | 16.40 | $ | 14.14 | $ | 16.39 | $ | 14.82 | |||||||||||||||||||||
0.12 | 0.23 | 0.39 | 0.37 | 0.72 | 0.73 | 0.63 | 0.13 | 0.03 | 0.04 | (0.01 | ) | |||||||||||||||||||||||||||||||
3.30 | 2.00 | 1.30 | 2.99 | (11.58 | ) | 4.33 | 4.92 | 2.05 | 2.23 | 2.04 | 1.58 | |||||||||||||||||||||||||||||||
3.42 | 2.23 | 1.69 | 3.36 | (10.86 | ) | 5.06 | 5.55 | 2.18 | 2.26 | 2.08 | 1.57 | |||||||||||||||||||||||||||||||
— | (0.56 | ) | (0.52 | ) | (0.67 | ) | (0.77 | ) | (0.56 | ) | (0.48 | ) | (0.05 | ) | — | — | — | |||||||||||||||||||||||||
— | — | — | (0.33 | ) | (2.66 | ) | (1.82 | ) | (1.33 | ) | — | — | — | — | ||||||||||||||||||||||||||||
— | (0.56 | ) | (0.52 | ) | (1.00 | ) | (3.43 | ) | (2.38 | ) | (1.81 | ) | (0.05 | ) | — | — | — | |||||||||||||||||||||||||
0.00 | — | — | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | ||||||||||||||||||||||||||||||||
$ | 15.20 | $ | 18.45 | $ | 16.78 | $ | 15.61 | $ | 13.25 | $ | 27.54 | $ | 24.86 | $ | 18.53 | $ | 16.40 | $ | 18.47 | $ | 16.39 | |||||||||||||||||||||
29.03 | % | 13.7 | %F | 11.05 | % | 27.70 | % | (44.65 | )% | 21.86 | % | 27.88 | % | 13.31 | %F | 15.98 | %F | 12.83 | %F | 10.59 | %F | |||||||||||||||||||||
$ | 1 | $ | 483,256 | $ | 469,414 | $ | 431,499 | $ | 328,083 | $ | 672,680 | $ | 563,231 | $ | 26 | $ | 4 | $ | 11 | $ | 1 | |||||||||||||||||||||
1.48 | % | 0.46 | % | 0.46 | % | 0.48 | % | 0.41 | % | 0.42 | % | 0.45 | % | 1.20 | % | 1.25 | %G | 2.01 | % | 1.99 | %G | |||||||||||||||||||||
1.48 | % | 0.46 | % | 0.46 | % | 0.48 | % | 0.41 | % | 0.42 | % | 0.45 | % | 20.82 | % | 1.26 | %G | 157.11 | % | 2.60 | %G | |||||||||||||||||||||
1.72 | % | 2.53 | % | 2.45 | % | 3.00 | % | 3.24 | % | 2.77 | % | 2.76 | % | 2.20 | % | 0.98 | %G | 1.99 | % | (0.20) | %G | |||||||||||||||||||||
1.72 | % | 2.53 | % | 2.45 | % | 3.00 | % | 3.24 | % | 2.77 | % | 2.76 | % | (17.42 | )% | 0.96%G | (153.10 | )% | (0.81) | %G | ||||||||||||||||||||||
41 | %I | 20 | %F | 38 | % | 41 | % | 31 | % | 38 | % | 40 | % | 20 | %F | 38 | % | 20 | %F | 38 | % |
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Disclosure Regarding the Board of Trustees’ Approval of the Management
Agreement and Investment Advisory Agreements of the Fund
(Unaudited)
Agreement and Investment Advisory Agreements of the Fund
(Unaudited)
Disclosure Regarding Approval of Appointment of Brandes Investment Partners, L.P. with Respect to the American Beacon Emerging Markets Fund
The Board of Trustees (the “Board”) of the Trust met on November 9, 2010 to consider the approval of Brandes Investment Partners, L.P. (“Brandes”) as an investment subadvisor to the American Beacon Emerging Markets Fund (the “Emerging Markets Fund”), an existing series of the Trust. Prior to the meeting, the Board requested and reviewed information provided by Brandes in connection with its consideration of Brandes as an investment subadvisor to the Emerging Markets Fund, and the Investment Committee of the Board met with representatives from Brandes. A discussion of the factors relating to the Board’s selection of Brandes and approval of the investment advisory agreement between the American Beacon Advisors, Inc. (the “Manager”) and Brandes (“Agreement”) follows.
Nature, extent and quality of the services to be provided by Brandes. The Board considered information regarding Brandes’ principal business activities, its reputation, financial condition and overall capabilities to perform the services under the Agreement. In addition, the Board considered the background and experience of the personnel who will be assigned responsibility for managing the Emerging Markets Fund. The Board also considered that Brandes provides similar portfolio management services to other registered funds. The Board also considered Brandes’ investment resources, infrastructure and the adequacy of its compliance program. In addition, the Board took into consideration the Manager’s recommendation of Brandes. Brandes also represented that current staffing levels will be adequate to service the Emerging Markets Fund. Based on this information, the Board concluded that the nature, extent and quality of the advisory services to be provided by Brandes were appropriate for the Emerging Markets Fund in light of its investment objective, and, thus, supported a decision to approve the Agreement.
Performance of Brandes. The Board evaluated Brandes’ historical investment performance record in managing investments in emerging markets. In particular, the Board evaluated the one-, three-, five-, ten-, fifteen-year and since inception (December 31, 1994) performance of a composite of all fee-paying and non-fee paying fully discretionary emerging markets equity accounts (the “Composite”) managed by Brandes for the periods ended September 30, 2010, as compared to the MSCI Emerging Markets Index. The Board noted that the Composite outperformed the index for all such time periods. In light of all the information provided, the Board concluded that the historical investment performance record of Brandes supported the approval of the Agreement.
Comparisons of the amounts to be paid under the Agreement with those under contracts between Brandes and its other clients. In evaluating the Agreement, the Board reviewed the proposed advisory fee rate for services to be performed by Brandes on behalf of the Emerging Markets Fund. The Board considered Brandes’ representation that in light of the more complex regulatory regime that applies to its mutual fund clients, it is reasonable to charge higher fees to its mutual funds clients than it charges to other institutional clients. In addition, the Board considered that the Manager has agreed to extend the current expense limitation agreement in effect for the Emerging Markets Fund at least through March 1, 2012 and, as a result, there will not be an increase during that period in the total annual fund operating expenses after expense waiver and reimbursement as a result of the appointment of Brandes. This information assisted the Board in concluding that Brandes’ advisory fees under the Agreement appeared to be within a reasonable range for the services to be provided to the Emerging Markets Fund, in light of all the factors considered.
Extent to which economies of scale would be realized as the Fund grows and whether fee levels reflect these economies of scale for the benefit of Fund investors. The Board considered Brandes’ representation that it does not expect to realize economies of scale in connection with its services to the Emerging Markets Fund at this time and, thus, its advisory fee rate charged to the Emerging Markets Fund does not include breakpoints. Based on the foregoing information, the Board concluded that economies of scale were not deemed a material factor in approving the Agreement.
Costs of the services to be provided and profits to be realized by Brandes and its affiliates from the relationship with the Fund. The Board did not consider the costs of the services to be provided and profits to be realized by Brandes from its relationship with the Emerging Markets Fund, noting instead the arm’s-length nature of the relationship between the Manager and Brandes with respect to the negotiation of the advisory fee rate on behalf the Emerging Markets Fund.
Benefits to be derived by Brandes from the relationship with the Fund. The Board considered the “fall-out” or ancillary benefits that may accrue to Brandes as a result of the advisory relationship with the Emerging Markets Fund. In this regard, the Board considered Brandes’ representation that it may execute brokerage transaction with brokers who provide the firm with research and brokerage products and services. The Board also considered Brandes’ representation that all soft dollar transactions are expected to be executed in accordance with Section 28(e) of the Securities Exchange Act of 1934, as amended. Brandes did not identify any other “fall-out” or ancillary benefits that may accrue to Brandes. Based on the foregoing information, the Board concluded any “fall-out” benefits which may accrue to Brandes may benefit the Fund and that they were not a material factor in approving the Agreement.
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Delivery of Documents
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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:
7 | 8 | |
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 twenty 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 | Distributor | |||
State Street | Boston Financial Data | Registered | Foreside Fund | |||
Bank and Trust | Services | Public | Services, LLC | |||
Boston, Massachusetts | Kansas City, Missouri | Accounting | Portland, Maine | |||
Firm | ||||||
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 or Summary 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//11
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l V I S I O N l E X P E R I E N C E Semi-Annual Report April 30, 2011 B A L A N C E D F U N D L A R G E C A P G R OWT H F U N D M I D — C A P V A L U E F U N D |
About American Beacon Advisors Contents
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.
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American Beacon Schedules of Investments | ||||
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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 each 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, 2011 |
Table of Contents
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Fellow Shareholders,
Over the past six months, the equity markets have generally rallied on, despite concerns over the pace of global economic recovery, reoccurrences of sovereign debt worries, geopolitical unrest, inflation fears and the potential impact of Japan’s recent earthquake. Though challenging, these factors were offset by increasing reports of strength in corporate earnings and the persistence of the U.S. economic recovery.
The performance of our domestic equity funds reflects this strength as well. It also reflects the American Beacon investment philosophy: our belief that portfolios managed with a longer-term perspective tend to be better positioned for riding out the inevitable waves of economic and geopolitical upheaval.
For the six-month period ended April 30, 2011:
>>American Beacon Balanced Fund (Institutional Class) returned 9.65%
>>American Beacon Large Cap Growth Fund (Institutional Class) generated 18.12%
>>American Beacon Mid-Cap Value Fund (Institutional Class) rose 19.05%
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.
While day-to-day volatility continues to influence the world’s equity and credit markets, American Beacon remains focused on seeking opportunities and meeting market challenges to deliver the type of consistency in performance and service our shareholders value.
Our process is summarized as: Oversight 360. It’s an ongoing commitment to cast a watchful and analytical eye over all the factors that influence our fellow shareholders’ investments.
Thank you for your continued investment in the American Beacon Funds. To obtain further details about the growing number of investment opportunities now available within the American Beacon Funds family or to access your account information, please visit our website at www.americanbeaconfunds.com.
Best Regards, | ||||
![]() | ||||
Gene L. Needles, Jr. | ||||
President American Beacon Funds |
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Table of Contents
Domestic Equity Market Overview
April 30, 2011 (Unaudited)
April 30, 2011 (Unaudited)
The stock market rallied over the six months ending April 30, 2011, with most indices posting their highest price levels in over two years. This performance was remarkable given the numerous challenges that arose during the period—multiple conflicts in the Middle East and Northern Africa, rising food and energy prices globally, concerns about rising debt risks both domestically and overseas, and the economic after-effects of Japan’s earthquake and tsunami. While some of these events took a tremendous toll in terms of human life and suffering, investors ultimately did not see them as leading to the derailment of the U.S. economic recovery.
Although overall U.S. economic growth was only moderate during the period, improved profitability and stronger corporate balance sheets continued to provide positive momentum for the U.S. equity market. In addition, healthy business-to-business spending, especially in technology and manufacturing, added to positive returns.
Exports had also been a bright spot for the overall economy. Growth in some overseas economies had been much stronger than in the U.S, which benefitted those companies with higher levels of overseas sales. Energy sector stocks in particular were big winners, thanks to rising oil prices. However, investor concerns for rapidly rising energy and commodity prices globally dampened overall market enthusiasm in the early part of 2011. By March, the stock market had climbed “the wall of worry,” boosted by corporate earnings and valuation levels. Ultimately, the S&P 500 Index rose 16.4% and the Russell 1000 Value Index gained 17.3% during the period.
Corporate America’s strengthening financial position appeared to be the result of aggressive retrenchment during the economic crisis of 2008. During this period, S&P 500 companies amassed nearly $1 trillion of cash on their balance sheets. These same companies also announced over $260 billion in acquisitions and approved over $150 billion in share repurchases. Many companies have also expressed their intention to increase dividends and/or capital expenditures in the coming year—and some had actually already done so. This highlights a considerable mindset shift from a year ago, when management teams seemed satisfied stockpiling cash despite the paltry yield it was earning—a situation Japan had contended with for decades. Determining how companies will spend their cash is of great interest—and is critical to the market—in the near term, since the effectiveness of a company’s cash deployment will greatly influence its future stock performance.
Also helping to propel the market over the past six months were: the extension of Bush-era tax rates and other measures for an additional two years by Congress; and the positive effects of the Federal Reserve’s second phase of quantitative easing (QE2). This occurred in spite of persistently high unemployment, sagging home sales, and continued fears over European Union sovereign debt risk.
A self-sustaining recovery was leading the economic expansion, but one key critical variable for the economy and stock market remains domestic employment. Private sector employment had seen recent gains, but initial unemployment claims had been moving higher in recent reports. Yet, higher stock prices and the resulting wealth effect were fueling consumer spending. Businesses were returning capital to investors, bank lending had increased and consumer credit card delinquencies are down—all signs that U.S. economic activity is on stronger footing and could be poised for continued growth in 2011.
Looking forward, the Federal Reserve’s QE2 program for direct purchases of Treasury bonds is set to finish at the end of June, and it remains to be seen whether this will have negative effects on interest rates. In addition, the ongoing debate in Washington, D.C. over the Federal budget and deficit reduction is likely to continue to attract investor interest and attention. Any significant progress on deficit reduction could be perceived as a major improvement in the economic fundamentals by the market.
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Table of Contents
Performance Overview
American Beacon Balanced FundSM
April 30, 2011 (Unaudited)
American Beacon Balanced FundSM
April 30, 2011 (Unaudited)
The Balanced Fund’s Institutional Class returned 9.65% for the six months ended April 30, 2011, lagging the 60% Russell 1000® Value Index/40% Barclays Capital Aggregate Index benchmark return of 10.17% and the Lipper Mixed Asset Target Allocation Growth Funds Index return of 11.79% for the same period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/11 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,8) | 9.65 | % | 10.75 | % | 3.64 | % | 5.84 | % | ||||||||
Y Class (1,2,8) | 9.50 | % | 10.62 | % | 3.60 | % | 5.81 | % | ||||||||
Investor Class(1,8) | 9.46 | % | 10.33 | % | 3.33 | % | 5.55 | % | ||||||||
Advisor Class(1,3,8) | 9.32 | % | 10.16 | % | 3.12 | % | 5.39 | % | ||||||||
A Class with sales Charge (1,4,8) | 3.09 | % | 3.99 | % | 2.11 | % | 4.92 | % | ||||||||
A Class without sales Charge (1,4,8) | 9.39 | % | 10.31 | % | 3.33 | % | 5.54 | % | ||||||||
C Class with sales Charge (1,5,8) | 7.98 | % | 8.57 | % | 3.19 | % | 5.47 | % | ||||||||
C Class without sales Charge (1,5,8) | 8.98 | % | 9.57 | % | 3.19 | % | 5.47 | % | ||||||||
AMR Class(1,8) | 9.74 | % | 11.03 | % | 3.91 | % | 6.12 | % | ||||||||
Balanced Composite Index (6) | 10.17 | % | 11.66 | % | 3.79 | % | 5.25 | % | ||||||||
Russell 1000 Value Index(7) | 17.29 | % | 15.24 | % | 1.40 | % | 4.31 | % | ||||||||
Barclays Capital Aggregate Index(7) | 0.02 | % | 5.36 | % | 6.33 | % | 5.74 | % | ||||||||
Lipper Mixed-Asset Target Allocations Growth Funds Index(7) | 11.79 | % | 14.93 | % | 4.56 | % | 5.25 | % |
* | 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 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 five-year and ten-year periods represents the total returns achieved by the Institutional Class from 4/30/01 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 4/30/01. | |
3. | Fund performance for the five-year and ten-year periods represents the total returns achieved by the Investor Class from 4/30/01 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 4/30/01. 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. | Fund performance for the one-year, five-year, and ten-year periods represents the total returns achieved by the Investor Class from 4/30/01 up to 5/17/10, the inception date of the A Class, and the returns of the A Class since its inception. Expenses of the A 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 A Class been in existence since 4/30/01. A Class has a maximum sales charge of 5.75%. | |
5. | Fund performance for the one-year, five-year, and ten-year periods represents the total returns achieved by the Investor Class from 4/30/01 up to 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the C 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 C Class been in existence since 4/30/01. The maximum contingent deferred sales charge for C Class is 1.00% for shares redeemed within one year of the date of purchase. | |
6. | 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. | |
7. | 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. | |
8. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, A, C, and AMR Class shares was 0.59%, 0.69% 0.94%, 1.10%, 1.09%, 1.87%, and 0.34% 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 65% in equities (including equitized cash) and 35% 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 15.88% for the period, trailing the Russell 1000 Value Index (“the Index”) return of 17.29%. 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 Information Technology, Energy, and Telecommunication Services sectors detracted the most value from relative performance. Holdings in the Information Technology sector that had the most impact on the
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Table of Contents
Performance Overview
American Beacon Balanced FundSM
April 30, 2011 (Unaudited)
American Beacon Balanced FundSM
April 30, 2011 (Unaudited)
Fund’s underperformance were Cisco (down 22.2%) and Hewlett Packard (down 3.3%). For the period the Fund owned the securities, Marathon Oil (up 30.1%), Conoco Phillips (up 33.1%) and Chevron (up 32.7%) were the largest detractors from relative performance in the Energy sector. In the Telecommunication Services sector, Nokia (down 16.5%) hurt the Fund’s returns. Good stock selection in the Financials sector where American Express (up 19.5%) and Wells Fargo (up 12.8% for the period the Fund owned the security) were the largest contributors, added relative value to performance.
Underweightings in Utilities and Consumer Staples, the two worst performing sectors in the Index, generated positive returns to performance through sector allocation. Excess performance from the Fund’s allocation to the aforementioned sectors was somewhat offset by underperformance resulting from an overweighting in the Information Technology sector, which detracted value.
The fixed income portion of the Fund returned -0.07% for the six-month period, underperforming the Barclays Capital Aggregate Index return of 0.02%. The Fund’s fixed income underperformance was mostly due to the Fund’s exposure to Agencies and U.S. Treasuries. In addition, the average duration of the Fund’s portfolio was slightly longer than the Index over the course of the six-month period, causing the Fund to lag as interest rates rose.
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 | ||||
JPMorgan Chase & Co. | 2.2 | % | ||
ConocoPhillips | 2.3 | % | ||
Bank of America Corp. | 1.8 | % | ||
Wells Fargo & Co. | 1.9 | % | ||
Hewlett-Packard Co. | 1.6 | % | ||
Vodafone Group plc | 1.5 | % | ||
Pfizer, Inc. | 1.5 | % | ||
Microsoft Corp. | 1.4 | % | ||
International Business Machines Corp. | 1.2 | % | ||
PNC Financial Services Group, Inc. | 1.1 | % |
Sector Allocation
% of | ||||
Equities | ||||
Financials | 25.6 | % | ||
Information Technology | 12.8 | % | ||
Energy | 12.4 | % | ||
Health Care | 10.7 | % | ||
Industrials | 9.7 | % | ||
Consumer Discretionary | 8.5 | % | ||
Consumer Staples | 7.6 | % | ||
Utilities | 4.4 | % | ||
Telecommunication Services | 4.4 | % | ||
Materials | 3.9 | % |
Sector Allocation
% of | ||||
Fixed Income | ||||
Corporate | 45.3 | % | ||
Mortgage-Backed | 19.2 | % | ||
U.S. Treasury | 14.3 | % | ||
Agency | 14.0 | % | ||
Commercial Mortgage Backed Securities | 3.3 | % | ||
Asset-Backed | 2.6 | % | ||
Municipal Obligations | 1.2 | % | ||
Other Government | 0.2 | % |
4
Table of Contents
Performance Overview
American Beacon Large Cap Growth FundSM
April 30, 2011 (Unaudited)
American Beacon Large Cap Growth FundSM
April 30, 2011 (Unaudited)
The Institutional Class of the Large Cap Growth Fund returned 18.12% for the six months ended April 30, 2011, compared to the Russell 1000® Growth Index (“Index”) return of 16.96% and the Lipper Large-Cap Growth Funds Index return of 15.03%.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/11 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,6) | 18.12 | % | 21.66 | % | 1.80 | % | 0.62 | % | ||||||||
Y Class (1,2,6) | 18.14 | % | 21.48 | % | 1.77 | % | 0.60 | % | ||||||||
A Class with sales charge (1,3,6) | 10.82 | % | 13.95 | % | .48 | % | -0.04 | % | ||||||||
A Class without sales charge (1,3,6) | 17.67 | % | 20.99 | % | 1.69 | % | 0.56 | % | ||||||||
C Class with sales charge (1,4,6) | 16.53 | % | 19.64 | % | 1.63 | % | 0.53 | % | ||||||||
C Class without sales charge (1,4,6) | 17.53 | % | 20.64 | % | 1.63 | % | 0.53 | % | ||||||||
AMR Class(1,6) | 18.25 | % | 21.99 | % | 2.12 | % | 0.84 | % | ||||||||
Russell 1000 Growth Index(5) | 16.96 | % | 20.87 | % | 5.06 | % | 2.11 | % | ||||||||
Lipper Large-Cap Growth Funds Index(5) | 15.03 | % | 17.97 | % | 3.52 | % | 1.23 | % |
* | 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 10-year periods represents the total returns achieved by the Institutional Class from 4/30/01 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. A portion of the fees charged to the Y Class was waived in 2011. Performance prior to waiving the fees was lower than the actual returns shown since 2011. | |
3. | Fund performance for the one-year, five-year, and ten-year periods represents the total returns achieved by the Institutional Class from 4/30/01 up to 5/17/10, the inception date of the A Class, and the returns of the A class since its inception. Expenses of the A Class are higher than those of the Institutional Class. Therefore, total returns shown may be higher than they would have been had the A Class been in existences since 4/30/01. A portion of the fees charged to the A Class was waived in 2011. Performance prior to waiving the fees was lower than the actual returns shown since 2011. A Class has a maximum sales charge of 5.75%. | |
4. | Fund performance of the one-year, five-year, and ten-year periods represents the total returns achieved by the Institutional Class from 4/30/01 up to 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the C Class are higher than those of the Institutional Class. Therefore, total returns shown may be higher than they would have been had the C Class been in existence since 4/30/01. A portion of the fees charged to the C Class was waived since 2011. Performance prior to waiving the fees was lower than the actual returns shown since 2011. The maximum contingent deferred sales charge for C Class is 1.00% for shares redeemed within one year of the date of purchase. | |
5. | 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. | |
6. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, A, C, and AMR Class shares was 0.95%, 1.07%, 1.50%, 2.54% and 0.70%, 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 entirely through stock selection as sector allocation detracted value relative to the Index.
Holdings in the Information Technology, Materials, and Consumer Staples sectors added the most relative value to the Fund’s performance. In the Information Technology sector, Baidu (up 35.0%) and ASML Holding (up 16.1%) were the largest contributors to the Fund’s returns. For the period the Fund owned the security, Cliffs Natural Resources (up 45.0%) added the most value to performance in the Materials sector. Green Mountain Coffee (up 126.9%) and PepsiCo (down 0.5%) for the period the Fund owned the securities had the largest impact to the Fund’s excess performance in the Consumer Staples sector. Poor stock selection in the Financials sector, where Goldman Sachs (down 6.4%) was the largest detractor, negatively impacted performance.
During the six-month period, a significant underweight in Energy, the best performing sector in the Index, detracted relative value through sector allocation.
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.
5
Table of Contents
Performance Overview
American Beacon Large Cap Growth FundSM
April 30, 2011 (Unaudited)
American Beacon Large Cap Growth FundSM
April 30, 2011 (Unaudited)
Top Ten Holdings
% of | ||||
Net Assets | ||||
Apple, Inc. | 3.1 | % | ||
Oracle Corp. | 2.4 | % | ||
Union Pacific Corp. | 2.3 | % | ||
EMC Corp/Massachusetts | 2.3 | % | ||
Express Scripts, Inc. | 2.1 | % | ||
Cognizant Technology Solutions Corp. | 2.1 | % | ||
Occidental Petroleum Corp. | 2.0 | % | ||
Deere & Co. | 1.9 | % | ||
Google, Inc. | 1.7 | % | ||
Altera Corp. | 1.6 | % |
Sector Allocation
% of | ||||
Equities | ||||
Information Technology | 33.6 | % | ||
Industrials | 19.7 | % | ||
Consumer Discretionary | 16.4 | % | ||
Health Care | 8.8 | % | ||
Energy | 7.3 | % | ||
Financials | 6.8 | % | ||
Materials | 4.6 | % | ||
Consumer Staples | 2.0 | % | ||
Telecommunication Services | 0.8 | % |
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Table of Contents
Performance Overview
American Beacon Mid-Cap Value FundSM
April 30, 2011 (Unaudited)
American Beacon Mid-Cap Value FundSM
April 30, 2011 (Unaudited)
The Institutional Class of the Mid-Cap Value Fund returned 19.05% for the six months ended April 30, 2011. The Fund outperformed the Russell Midcap® Value Index (“Index”) return of 18.95% but lagged the Lipper Mid-Cap Value Funds Index return of 19.47%.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/11 | ||||||||||||||||
Since | ||||||||||||||||
Incep. | ||||||||||||||||
6 Months* | 1 Year | 5 Years | (6/30/04) | |||||||||||||
Institutional Class(1,3,9) | 19.05 | % | 17.28 | % | 4.86 | % | 7.69 | % | ||||||||
Y Class (1,4,9) | 19.06 | % | 17.29 | % | 4.86 | % | 7.69 | % | ||||||||
Investor Class (1,2,9) | 19.65 | % | 17.73 | % | 4.70 | % | 7.57 | % | ||||||||
Advisor Class (1,5,9) | 18.80 | % | 16.75 | % | 4.50 | % | 7.42 | % | ||||||||
A Class with sales charge (1,6,9) | 11.94 | % | 9.91 | % | 3.27 | % | 6.49 | % | ||||||||
A Class without sales charge (1,6,9) | 18.77 | % | 16.61 | % | 4.50 | % | 7.42 | % | ||||||||
C Class with sales charge (1,7,9) | 17.22 | % | 15.07 | % | 4.41 | % | 7.35 | % | ||||||||
C Class without sales charge (1,7,9 | 18.22 | % | 16.07 | % | 4.41 | % | 7.35 | % | ||||||||
AMR Class (1,9) | 19.19 | % | 17.54 | % | 5.02 | % | 7.83 | % | ||||||||
Russell Midcap® Value Index(8) | 18.95 | % | 19.84 | % | 4.34 | % | 8.51 | % | ||||||||
Lipper Mid-Cap Value Funds Index(8) | 19.47 | % | 18.83 | % | 4.50 | % | 7.33 | % |
* | 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 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 five-year and since inception periods 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 inexistence 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 year and since inception periods 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 the actual returns show since 2007. | |
4. | Fund performance for the one-year, five-year, and since inception periods 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 total returns of the Institutional Class from 11/30/05 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 AMR and Institutional 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 inexistence since 6/30/04. A portion of the fees charged to the Y Class of the Fund was waived since 2010. Performance prior to waiving fees was lower than the actual returns shown for the periods since 2010. | |
5. | Fund performance for the five-year and since inception periods represents the total returns achieved by 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. | Performance shown prior to the 5/17/10 inception of the A 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 5/17/10. Because the AMR, Institutional, and Investor Classes had lower expenses, their performance was better than the A Class would have realized during the same period. A portion of the fees charged to the A Class of the Fund was waived since 2010. Performance prior to waiving fees was lower than the actual returns shown for the periods since 2010. A Class has a maximum sales charge of 5.75%. | |
7. | Performance shown prior to the 9/1/10 inception of the C 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 9/1/10. Because the AMR, Institutional, and Investor Classes had lower expenses, their performance was better than the C Class would have realized during the same period. A portion of the fees charged to the C Class of the Fund was waived since 2010. Performance prior to waiving fees was lower than the actual returns shown for the periods since 2010. The maximum contingent deferred sales charge for the C Class is 1.00% for shares redeemed within one year of the date of purchase. | |
8. | 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. | |
9. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, A, C, and AMR Class shares was 1.07%, 1.06%, 1.28%, 1.56%, 1.52%, 2.43%, and 0.78%, respectively. The expense ratios above |
7
Table of Contents
Performance Overview
American Beacon Mid-Cap Value FundSM
April 30, 2011 (Unaudited)
American Beacon Mid-Cap Value FundSM
April 30, 2011 (Unaudited)
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 as both stock selection and sector allocation added value relative to the Index.
The Fund’s investments in the Financials sector added the most value to relative returns. In the Financials sector, Willis Group (up 30.4%), Capital One Financial (up 46.9%), and Delphi Financial Group (up 19.1%) were the largest contributors. The Fund’s Utilities sector selections, where PNM Resources (up 28.3%) and Entergy (up 3.4% for the period the Fund owned the security) added the most relative value, also generated positive returns. Poor stock selection in the Energy and Industrials sectors detracted from the Fund’s relative performance. For the period the Fund owned the securities, El Paso (up 8.9%) and Valero Energy (up 56.8%) had the largest impact to performance in the Energy sector, as did Molex (up 34.8%) and SPX (up 29.8%) in the Industrials sector.
An underweighting in Utilities, one of the poorer performing sectors in the Index, and a significant overweighting in the Health Care sector added relative value to performance through sector allocation. An absence from Telecommunication Services, the worst performing sector in the Index, also had a positive impact on the Fund’s performance. An underweight in Energy, the best performing sector in the Index, had a negative impact offsetting a portion of the aforementioned good performance.
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. | 2.9 | % | ||
Masco Corp. | 2.0 | % | ||
Fifth Third Bancorp | 2.0 | % | ||
Brady Corp. | 1.8 | % | ||
Omnicom Group, Inc. | 1.7 | % | ||
Hospitality Properties Trust | 1.6 | % | ||
Avnet, Inc. | 1.6 | % | ||
Zimmer Holdings, Inc. | 1.5 | % | ||
Molex, Inc. | 1.5 | % | ||
Capital One Financial Corp. | 1.5 | % |
Sector Allocation
% of | ||||
Equities | ||||
Financials | 28.4 | % | ||
Industrials | 20.1 | % | ||
Consumer Discretionary | 13.6 | % | ||
Health Care | 12.0 | % | ||
Information Technology | 7.5 | % | ||
Utilities | 6.9 | % | ||
Materials | 4.6 | % | ||
Energy | 3.6 | % | ||
Consumer Staples | 3.3 | % |
8
Table of Contents
American Beacon Funds
Fund Expenses
April 30, 2011 (Unaudited)
Fund Expenses
April 30, 2011 (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, 2010 through April 30, 2011.
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 $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 higher.
Large Cap | ||||||||||||
Balanced | Growth | Mid-Cap | ||||||||||
Institutional Class | Fund | Fund | Value Fund | |||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/11 | $ | 1,096.50 | $ | 1,181.18 | $ | 1,190.49 | ||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 3.01 | $ | 5.14 | $ | 5.32 | ||||||
Annualized Expense Ratio | 0.58 | % | 0.95 | % | 0.98 | % |
Large Cap | ||||||||||||
Balanced | Growth | Mid-Cap | ||||||||||
Y Class | Fund | Fund | Value Fund | |||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | — | $ | 1,000.00 | ||||||
Ending Account Value 4/30/11 | $ | 1,094.60 | $ | — | $ | 1,196.51 | ||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 4.73 | $ | — | $ | 6.64 | ||||||
Annualized Expense Ratio | 0.91 | % | — | % | 1.22 | % |
Balanced | Mid-Cap | |||||||
Investor Class | Fund | Value Fund | ||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 4/30/11 | $ | 1,094.60 | $ | 1,196.51 | ||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 4.73 | $ | 6.64 | ||||
Annualized Expense Ratio | 0.91 | % | 1.22 | % |
Balanced | Mid-Cap | |||||||
Advisor Class | Fund | Value Fund | ||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 4/30/11 | $ | 1,093.20 | $ | 1,188.00 | ||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 5.61 | $ | 8.08 | ||||
Annualized Expense Ratio | 1.08 | % | 1.49 | % |
Balanced | Large Cap | Mid-Cap | ||||||||||
A Class | Fund | Growth Fund | Value Fund | |||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/2011 | $ | 1,093.94 | $ | 1,176.67 | $ | 1,187.74 | ||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 5.57 | $ | 7.81 | $ | 7.86 | ||||||
Annualized Expense Ratio | 1.07 | % | 1.45 | % | 1.45 | % |
Balanced | Large Cap | Mid-Cap | ||||||||||
C Class | Fund | Growth Fund | Value Fund | |||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/2011 | $ | 1,089.84 | $ | 1,175.26 | $ | 1,182.16 | ||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 9.46 | $ | 11.13 | $ | 12.12 | ||||||
Annualized Expense Ratio | 1.83 | % | 2.06 | % | 2.24 | % |
9
Table of Contents
American Beacon Funds
Fund Expenses
April 30, 2011 (Unaudited)
Fund Expenses
April 30, 2011 (Unaudited)
Balanced | Large Cap | Mid-Cap | ||||||||||
AMR Class | Fund | Growth Fund | Value Fund | |||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/2011 | $ | 1,097.38 | $ | 1,182.53 | $ | 1,191.85 | ||||||
Expenses Paid During Period 11/1/10-04/30/11 * | $ | 1.72 | $ | 3.79 | $ | 4.24 | ||||||
Annualized Expense Ratio | 0.33 | % | 0.70 | % | 0.78 | % |
* | 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. |
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 $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 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 | ||||||||||||
Balanced | Growth | Mid-Cap | ||||||||||
Institutional Class | Fund | Fund | Value Fund | |||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 04/30/11 | $ | 1,021.92 | $ | 1,020.08 | $ | 1,019.93 | ||||||
Expenses Paid During Period 11/1/10-04/30/11 * | $ | 2.91 | $ | 4.76 | $ | 4.91 | ||||||
Annualized Expense Ratio | 0.58 | % | 0.95 | % | 0.98 | % |
Large Cap | ||||||||||||
Balanced | Growth | Mid-Cap | ||||||||||
Y Class | Fund | Fund | Value Fund | |||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | — | $ | 1,000.00 | ||||||
Ending Account Value 04/30/11 | $ | 1,020.28 | $ | — | $ | 1,018.74 | ||||||
Expenses Paid During Period 11/1/10-04/30/11 * | $ | 4.56 | $ | — | $ | 6.11 | ||||||
Annualized Expense Ratio | 0.91 | % | — | % | 1.22 | % |
Balanced | Mid-Cap | |||||||
Investor Class | Fund | Value Fund | ||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 04/30/11 | $ | 1,020.28 | $ | 1,018.74 | ||||
Expenses Paid During Period 11/1/10-04/30/11 * | $ | 4.56 | $ | 6.11 | ||||
Annualized Expense Ratio | 0.91 | % | 1.22 | % |
Balanced | Mid-Cap | |||||||
Advisor Class | Fund | Value Fund | ||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 04/30/11 | $ | 1,019.44 | $ | 1,017.41 | ||||
Expenses Paid During Period 11/1/10-04/30/11 * | $ | 5.41 | $ | 7.45 | ||||
Annualized Expense Ratio | 1.08 | % | 1.49 | % |
10
Table of Contents
American Beacon Funds
Fund Expenses
April 30, 2011 (Unaudited)
Fund Expenses
April 30, 2011 (Unaudited)
Balanced | Large Cap | Mid-Cap | ||||||||||
A Class | Fund | Growth Fund | Value Fund | |||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/2011 | $ | 1,019.48 | $ | 1,017.62 | $ | 1,017.61 | ||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 5.37 | $ | 7.24 | $ | 7.25 | ||||||
Annualized Expense Ratio | 1.07 | % | 1.45 | % | 1.45 | % |
Balanced | Large Cap | Mid-Cap | ||||||||||
C Class | Fund | Growth Fund | Value Fund | |||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/2011 | $ | 1,015.74 | $ | 1,014.57 | $ | 1,013.68 | ||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 9.13 | $ | 10.30 | $ | 11.19 | ||||||
Annualized Expense Ratio | 1.83 | % | 2.06 | % | 2.24 | % |
Large Cap | ||||||||||||
Balanced | Growth | Mid-Cap | ||||||||||
AMR Class | Fund | Fund | Value Fund | |||||||||
Beginning Account Value 11/1/10. | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 04/30/11. | $ | 1,023.16 | $ | 1,021.32 | $ | 1,020.93 | ||||||
Expenses Paid During Period 11/1/10-04/30/11 * | $ | 1.66 | $ | 3.51 | $ | 3.91 | ||||||
Annualized Expense Ratio. |
* | 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. |
11
Table of Contents
American Beacon Balanced Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
COMMON STOCK - 61.56% | ||||||||
CONSUMER DISCRETIONARY - 4.94% | ||||||||
Auto Components - 0.43% | ||||||||
Johnson Controls, Inc. | $ | 42,700 | $ | 1,751 | ||||
Magna International, Inc. | 40,500 | 2,075 | ||||||
3,826 | ||||||||
Automobiles - 0.47% | ||||||||
General Motors Co.A | 52,900 | 1,698 | ||||||
Toyota Motor Corp.B | 31,000 | 2,470 | ||||||
4,168 | ||||||||
Hotels, Restaurants & Leisure - 0.79% | ||||||||
Carnival Corp. | 56,300 | 2,143 | ||||||
McDonald’s Corp. | 33,500 | 2,624 | ||||||
Wyndham Worldwide Corp. | 67,100 | 2,322 | ||||||
7,089 | ||||||||
Media - 0.91% | ||||||||
CBS Corp. | 97,600 | 2,461 | ||||||
Comcast Corp. | 115,600 | 2,839 | ||||||
The Interpublic Group of Cos Inc. | 72,500 | 852 | ||||||
Time Warner Cable, Inc. | 26,100 | 2,039 | ||||||
8,191 | ||||||||
Multiline Retail - 0.62% | ||||||||
JC Penney Co., Inc. | 107,800 | 4,145 | ||||||
Target Corp. | 27,950 | 1,372 | ||||||
5,517 | ||||||||
Specialty Retail - 1.72% | ||||||||
Abercrombie & Fitch Co. | 35,200 | 2,492 | ||||||
Best Buy Co, Inc. | 70,200 | 2,192 | ||||||
Home Depot, Inc. | 60,250 | 2,238 | ||||||
RadioShack Corp. | 73,400 | 1,160 | ||||||
The Gap, Inc. | 318,700 | 7,406 | ||||||
15,488 | ||||||||
Total Consumer Discretionary | 44,279 | |||||||
CONSUMER STAPLES - 4.72% | ||||||||
Beverages - 1.24% | ||||||||
Diageo plcB | 64,400 | 5,240 | ||||||
PepsiCo, Inc. | 85,600 | 5,897 | ||||||
11,137 | ||||||||
Food & Drug Retailing - 1.50% | ||||||||
CVS Caremark Corp. | 160,600 | 5,820 | ||||||
Safeway, Inc. | 71,100 | 1,728 | ||||||
Sysco Corp. | 30,500 | 882 | ||||||
Wal-Mart Stores, Inc. | 90,700 | 4,987 | ||||||
13,417 | ||||||||
Food Products - 0.16% | ||||||||
Kraft Foods, Inc. | 42,500 | 1,427 | ||||||
Household Products - 0.10% | ||||||||
Kimberly-Clark Corp. | 13,800 | 912 | ||||||
Tobacco - 1.72% | ||||||||
Altria Group, Inc. | 97,200 | 2,609 | ||||||
Imperial Tobacco Group plcB | 81,900 | 5,807 | ||||||
Philip Morris International, Inc. | $ | 100,700 | $ | 6,992 | ||||
15,408 | ||||||||
Total Consumer Staples | 42,301 | |||||||
ENERGY - 7.68% | ||||||||
Energy Equipment & Services - 0.40% | ||||||||
Cobalt International Energy, Inc.A | 81,800 | 1,145 | ||||||
Transocean Ltd. | 33,700 | 2,452 | ||||||
3,597 | ||||||||
Oil & Gas - 7.28% | ||||||||
BP plcB | 181,400 | 8,370 | ||||||
Chevron Corp. | 62,128 | 6,799 | ||||||
ConocoPhillips | 259,676 | 20,496 | ||||||
Exxon Mobil Corp. | 61,000 | 5,368 | ||||||
Marathon Oil Corp. | 7,900 | 427 | ||||||
Occidental Petroleum Corp. | 59,700 | 6,823 | ||||||
Royal Dutch Shell plcB | 101,900 | 7,985 | ||||||
Spectra Energy Corp. | 222,900 | 6,473 | ||||||
Total S.A.B | 38,000 | 2,441 | ||||||
65,182 | ||||||||
Total Energy | 68,779 | |||||||
FINANCIALS - 15.81% | ||||||||
Banks - 5.67% | ||||||||
Bank of America Corp. | 1,316,080 | 16,161 | ||||||
Fifth Third Bancorp | 127,700 | 1,695 | ||||||
First Horizon National Corp. | 84,400 | 924 | ||||||
KeyCorp. | 138,857 | 1,204 | ||||||
PNC Financial Services Group, Inc. | 164,758 | 10,271 | ||||||
SunTrust Banks, Inc. | 98,500 | 2,777 | ||||||
Wells Fargo & Co. | 576,098 | 16,770 | ||||||
Zions Bancorporation | 41,550 | 1,016 | ||||||
50,818 | ||||||||
Diversified Financials - 5.81% | ||||||||
American Express Co. | 115,300 | 5,659 | ||||||
Capital One Financial Corp. | 115,300 | 6,310 | ||||||
Citigroup, Inc. | 1,694,603 | 7,779 | ||||||
JPMorgan Chase & Co. | 440,934 | 20,121 | ||||||
Mastercard, Inc. | 2,100 | 579 | ||||||
Morgan Stanley | 171,100 | 4,474 | ||||||
SLM Corp. | 155,900 | 2,586 | ||||||
State Street Corp. | 46,900 | 2,183 | ||||||
The Goldman Sachs Group Inc. | 16,300 | 2,461 | ||||||
52,152 | ||||||||
Insurance - 3.72% | ||||||||
ACE Ltd. | 43,100 | 2,898 | ||||||
Genworth Financial, Inc. | 213,000 | 2,596 | ||||||
Hartford Financial Services Group, Inc. | 126,400 | 3,662 | ||||||
Lincoln National Corp. | 78,500 | 2,452 | ||||||
MetLife, Inc. | 152,688 | 7,144 | ||||||
Prudential Financial, Inc. | 21,200 | 1,345 | ||||||
The Allstate Corp. | 174,900 | 5,919 | ||||||
The Travelers Cos., Inc. | 32,900 | 2,082 | ||||||
XL Group plc | 213,000 | 5,201 | ||||||
33,299 | ||||||||
See accompanying notes
12
Table of Contents
American Beacon Balanced Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
Real Estate - 0.61% | ||||||||
Annaly Capital Management, Inc.C | $ | 201,100 | $ | 3,587 | ||||
Chimera Investment Corp.C | 452,272 | 1,832 | ||||||
5,419 | ||||||||
Total Financials | 141,688 | |||||||
HEALTH CARE - 6.65% | ||||||||
Biotechnology - 0.36% | ||||||||
Amgen, Inc. | 57,200 | 3,252 | ||||||
Health Care Equipment & Supplies - 1.14% | ||||||||
Baxter International, Inc. | 89,200 | 5,076 | ||||||
Covidien plc | 23,700 | 1,320 | ||||||
Medtronic, Inc. | 92,200 | 3,849 | ||||||
10,245 | ||||||||
Health Care Providers & Services - 0.41% | ||||||||
WellPoint, Inc. | 48,000 | 3,686 | ||||||
Pharmaceuticals - 4.74% | ||||||||
Bristol-Myers Squibb Co. | 107,900 | 3,032 | ||||||
Eli Lilly & Co. | 102,600 | 3,797 | ||||||
Johnson & Johnson | 134,600 | 8,846 | ||||||
Merck & Co, Inc. | 262,376 | 9,432 | ||||||
Novartis AGB | 66,400 | 3,929 | ||||||
Pfizer, Inc. | 635,454 | 13,319 | ||||||
42,355 | ||||||||
Total Health Care | 59,538 | |||||||
INDUSTRIALS - 6.00% | ||||||||
Aerospace & Defense - 1.84% | ||||||||
Huntington Ingalls Industries, Inc.A | 7,350 | 294 | ||||||
Lockheed Martin Corp. | 73,000 | 5,785 | ||||||
Northrop Grumman Corp. | 44,100 | 2,805 | ||||||
Raytheon Co. | 94,400 | 4,583 | ||||||
The Boeing Co. | 38,200 | 3,048 | ||||||
16,515 | ||||||||
Air Freight & Couriers - 0.27% | ||||||||
FedEx Corp. | 25,700 | 2,459 | ||||||
Electrical Equipment - 0.36% | ||||||||
TE Connectivity Ltd. | 90,425 | 3,242 | ||||||
Industrial Conglomerates - 1.99% | ||||||||
3M Co. | 42,800 | 4,161 | ||||||
General Electric Co. | 343,600 | 7,026 | ||||||
Honeywell International, Inc. | 80,200 | 4,910 | ||||||
Tyco International Ltd. | 34,725 | 1,692 | ||||||
17,789 | ||||||||
Machinery - 1.54% | ||||||||
Cummins, Inc. | 11,800 | 1,418 | ||||||
Illinois Tool Works, Inc. | 51,100 | 2,985 | ||||||
ITT Corp. | 72,700 | 4,201 | ||||||
PACCAR, Inc. | 97,200 | 5,163 | ||||||
13,767 | ||||||||
Total Industrials | 53,772 | |||||||
INFORMATION TECHNOLOGY - 7.92% | ||||||||
Communications Equipment - 0.31% | ||||||||
Cisco Systems, Inc. | $ | 158,500 | $ | 2,783 | ||||
Computers & Peripherals - 3.21% | ||||||||
Apple, Inc. | 11,110 | 3,869 | ||||||
Hewlett-Packard Co. | 358,700 | 14,481 | ||||||
International Business Machines Corp. | 61,500 | 10,491 | ||||||
28,841 | ||||||||
Electronic Equipment & Instruments - 0.18% | ||||||||
Avnet, Inc. | 44,100 | 1,602 | ||||||
Office Electronics - 0.21% | ||||||||
Xerox Corp. | 182,600 | 1,842 | ||||||
Semiconductor Equipment & Products - 1.98% | ||||||||
Applied Materials, Inc. | 114,800 | 1,801 | ||||||
ASML Holding N.V. | 26,930 | 1,125 | ||||||
Intel Corp. | 412,700 | 9,570 | ||||||
Micron Technology, Inc. | 294,500 | 3,325 | ||||||
Texas Instruments, Inc. | 53,000 | 1,883 | ||||||
17,704 | ||||||||
Software - 2.03% | ||||||||
CA, Inc. | 201,774 | 4,962 | ||||||
Microsoft Corp. | 470,900 | 12,252 | ||||||
Oracle Corp. | 26,200 | 945 | ||||||
18,159 | ||||||||
Total Information Technology | 70,931 | |||||||
MATERIALS - 2.40% | ||||||||
Chemicals - 1.20% | ||||||||
Air Products & Chemicals, Inc. | 22,100 | 2,111 | ||||||
Celanese Corp. | 29,000 | 1,448 | ||||||
EI du Pont de Nemours & Co. | 56,400 | 3,203 | ||||||
PPG Industries, Inc. | 9,700 | 918 | ||||||
The Dow Chemical Co. | 75,300 | 3,087 | ||||||
10,767 | ||||||||
Metals & Mining - 0.75% | ||||||||
Cliffs Natural Resources, Inc. | 48,900 | 4,583 | ||||||
Newmont Mining Corp. | 35,900 | 2,104 | ||||||
6,687 | ||||||||
Paper & Forest Products - 0.45% | ||||||||
International Paper Co. | 129,700 | 4,005 | ||||||
Total Materials | 21,459 | |||||||
TELECOMMUNICATION SERVICES - 2.74% | ||||||||
Diversified Telecommunication Services - 1.19% | ||||||||
AT&T, Inc. | 229,877 | 7,154 | ||||||
Nokia OYJB | 177,300 | 1,636 | ||||||
Verizon Communications, Inc. | 49,808 | 1,882 | ||||||
10,672 | ||||||||
Wireless Telecommunication Services - 1.55% | ||||||||
Vodafone Group plcB | 475,300 | 13,841 | ||||||
Total Telecommunication Services | 24,513 | |||||||
See accompanying notes
13
Table of Contents
American Beacon Balanced Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
UTILITIES - 2.70% | ||||||||
CenterPoint Energy, Inc. | $ | 197,800 | $ | 3,679 | ||||
Dominion Resources, Inc. | 101,400 | 4,707 | ||||||
Edison International | 71,300 | 2,800 | ||||||
Entergy Corp. | 20,100 | 1,401 | ||||||
Exelon Corp. | 129,800 | 5,472 | ||||||
PPL Corp. | 64,300 | 1,764 | ||||||
Public Service Enterprise Group, Inc. | 134,300 | 4,320 | ||||||
Total Utilities | 24,143 | |||||||
Total Common Stock (Cost $475,662) | 551,403 | |||||||
PREFERRED STOCK - 0.35 (Cost $3,130) | ||||||||
CONSUMER DISCRETIONARY - 0.35% | ||||||||
General Motors Co. | 62,400 | 3,108 | ||||||
Par Amount | Value | |||||||
(dollars in thousands) | ||||||||
CORPORATE OBLIGATION - 14.88% | ||||||||
Finance - 6.62% | ||||||||
AEGON Funding Co., LLC, | ||||||||
5.75%, Due 12/15/2020 | 350 | 372 | ||||||
Aflac, Inc., | ||||||||
8.50%, Due 5/15/2019 | 190 | 232 | ||||||
American Express Co., | ||||||||
8.15%, Due 3/19/2038 | 225 | 307 | ||||||
American Express Credit Corp., | ||||||||
5.125%, Due 8/25/2014 | 720 | 786 | ||||||
2.75%, Due 9/15/2015 | 150 | 150 | ||||||
American International Group, Inc., | ||||||||
6.40%, Due 12/15/2020 | 625 | 684 | ||||||
ANZ National Int’l Ltd/London, | ||||||||
2.375%, Due 12/21/2012D | 350 | 355 | ||||||
Bank of America Corp., | ||||||||
4.50%, Due 4/1/2015 | 380 | 400 | ||||||
6.50%, Due 8/1/2016 | 2,090 | 2,355 | ||||||
7.80%, Due 9/15/2016 | 700 | 807 | ||||||
7.625%, Due 6/1/2019 | 925 | 1,091 | ||||||
Bank One Corp., | ||||||||
4.90%, Due 4/30/2015 | 250 | 266 | ||||||
Barclays Bank plc, | ||||||||
3.90%, Due 4/7/2015 | 330 | 346 | ||||||
6.75%, Due 5/22/2019 | 350 | 400 | ||||||
BNP Paribas, | ||||||||
3.60%, Due 2/23/2016 | 320 | 325 | ||||||
Canadian Imperial Bank of Commerce/Canada, | ||||||||
1.45%, Due 9/13/2013 | 515 | 517 | ||||||
Citigroup, Inc., | ||||||||
1.235%, Due 4/1/2014E | 300 | 300 | ||||||
6.375%, Due 8/12/2014 | 920 | 1,028 | ||||||
0.591%, Due 11/5/2014E | 320 | 312 | ||||||
6.01%, Due 1/15/2015 | 540 | 599 | ||||||
6.125%, Due 11/21/2017 | 660 | 732 | ||||||
8.50%, Due 5/22/2019 | 1,000 | 1,246 | ||||||
CME Group, Inc., | ||||||||
5.40%, Due 8/1/2013 | 260 | 284 | ||||||
5.75%, Due 2/15/2014 | 465 | 517 | ||||||
CNA Financial Corp., | ||||||||
7.35%, Due 11/15/2019 | 245 | 284 | ||||||
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, | ||||||||
4.20%, Due 5/13/2014D | 200 | 214 | ||||||
2.125%, Due 10/13/2015 | 385 | 377 | ||||||
Deutsche Bank AG/London, | ||||||||
3.875%, Due 8/18/2014 | 325 | 342 | ||||||
Fifth Third Bancorp, | ||||||||
3.625%, Due 1/25/2016 | 325 | 330 | ||||||
8.25%, Due 3/1/2038 | 1,500 | 1,840 | ||||||
General Electric Capital Corp., | ||||||||
0.493%, Due 1/8/2016E | 1,125 | 1,090 | ||||||
5.40%, Due 2/15/2017 | 390 | 428 | ||||||
5.625%, Due 5/1/2018 | 765 | 838 | ||||||
6.00%, Due 8/7/2019 | 350 | 390 | ||||||
5.50%, Due 1/8/2020 | 250 | 269 | ||||||
5.30%, Due 2/11/2021 | 190 | 197 | ||||||
5.875%, Due 1/14/2038 | 625 | 632 | ||||||
HCP, Inc., | ||||||||
5.375%, Due 2/1/2021 | 400 | 416 | ||||||
HSBC Finance Corp., | ||||||||
0.528%, Due 1/15/2014E | 1,050 | 1,035 | ||||||
ING Bank N.V., | ||||||||
5.125%, Due 5/1/2015D | 450 | 465 | ||||||
JPMorgan Chase & Co., | ||||||||
1.074%, Due 1/24/2014E | 1,375 | 1,381 | ||||||
3.70%, Due 1/20/2015 | 1,240 | 1,288 | ||||||
6.00%, Due 1/15/2018 | 375 | 417 | ||||||
5.50%, Due 10/15/2040 | 325 | 325 | ||||||
JPMorgan Chase Bank NA, | ||||||||
0.640%, Due 6/13/2016D E | 415 | 399 | ||||||
KeyCorp, | ||||||||
5.10%, Due 3/24/2021 | 200 | 205 | ||||||
Liberty Mutual Insurance Co., | ||||||||
7.875%, Due 10/15/2026D | 1,500 | 1,660 | ||||||
Lincoln National Corp., | ||||||||
4.75%, Due 2/15/2014 | 245 | 259 | ||||||
Lloyds TSB Bank plc, | ||||||||
4.375%, Due 1/12/2015D | 325 | 336 | ||||||
6.375%, Due 1/21/2021 | 210 | 225 | ||||||
Mellon Funding Corp., | ||||||||
0.463%, Due 5/15/2014E | 250 | 249 | ||||||
Merrill Lynch & Co, Inc., | ||||||||
6.40%, Due 8/28/2017 | 1,000 | 1,115 | ||||||
6.50%, Due 7/15/2018 | 260 | 285 | ||||||
6.11%, Due 1/29/2037 | 365 | 357 | ||||||
MetLife Institutional Funding II, | ||||||||
1.201%, Due 4/4/2014D E | 600 | 602 | ||||||
MetLife, Inc., | ||||||||
5.00%, Due 11/24/2013 | 495 | 535 | ||||||
6.375%, Due 6/15/2034 | 350 | 388 | ||||||
Monumental Global Funding III, | ||||||||
0.478%, Due 1/15/2014D E | 325 | 314 | ||||||
Morgan Stanley, | ||||||||
0.590%, Due 1/9/2014E | 2,860 | 2,799 | ||||||
0.758%, Due 10/15/2015E | 920 | 887 | ||||||
7.30%, Due 5/13/2019 | 350 | 401 | ||||||
5.625%, Due 9/23/2019 | 350 | 364 | ||||||
National Australia Bank Ltd., | ||||||||
4.375%, Due 12/10/2020D | 325 | 317 |
See accompanying notes
14
Table of Contents
American Beacon Balanced Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ||||||||
National Rural Utilities Cooperative Finance Corp., | ||||||||
1.125%, Due 11/1/2013 | 380 | 380 | ||||||
Nationwide Building Society, | ||||||||
5.50%, Due 7/18/2012D | 500 | 524 | ||||||
4.875%, Due 1/27/2020D | 300 | 310 | ||||||
PNC Funding Corp., | ||||||||
4.25%, Due 9/21/2015 | 730 | 776 | ||||||
4.375%, Due 8/11/2020 | 330 | 333 | ||||||
Pricoa Global Funding I, | ||||||||
5.40%, Due 10/18/2012D | 175 | 185 | ||||||
Prudential Financial, Inc., | ||||||||
5.10%, Due 9/20/2014 | 445 | 484 | ||||||
7.375%, Due 6/15/2019 | 300 | 357 | ||||||
Societe Generale, | ||||||||
2.20%, Due 9/14/2013D | 300 | 302 | ||||||
1.326%, Due 4/11/2014D E | 900 | 901 | ||||||
State Street Corp., | ||||||||
4.30%, Due 5/30/2014 | 290 | 313 | ||||||
2.875%, Due 3/7/2016 | 570 | 575 | ||||||
SunTrust Banks, Inc., | ||||||||
3.60%, Due 4/15/2016 | 200 | 203 | ||||||
The Bank of New York Mellon Corp, | ||||||||
4.95%, Due 11/1/2012 | — | — | ||||||
1.50%, Due 1/31/2014 | 380 | 382 | ||||||
4.30%, Due 5/15/2014 | 380 | 411 | ||||||
The Bear Stearns Cos., Inc., | ||||||||
7.25%, Due 2/1/2018 | 1,460 | 1,715 | ||||||
The Goldman Sachs Group, Inc., | ||||||||
5.35%, Due 1/15/2016 | 725 | 786 | ||||||
6.25%, Due 9/1/2017 | 650 | 724 | ||||||
5.95%, Due 1/18/2018 | 565 | 618 | ||||||
6.00%, Due 6/15/2020 | 175 | 189 | ||||||
6.75%, Due 10/1/2037 | 1,902 | 1,971 | ||||||
The Travelers Cos Inc, | ||||||||
3.90%, Due 11/1/2020 | 160 | 155 | ||||||
Travelers Property Casualty Corp., | ||||||||
5.00%, Due 3/15/2013 | 640 | 685 | ||||||
UBS AG/Stamford CT, | ||||||||
5.875%, Due 12/20/2017 | 325 | 363 | ||||||
UnitedHealth Group, Inc., | ||||||||
6.625%, Due 11/15/2037 | 1,625 | 1,808 | ||||||
US Bancorp, | ||||||||
1.375%, Due 9/13/2013 | 570 | 572 | ||||||
Wachovia Corp., | ||||||||
0.648%, Due 10/15/2016E | 650 | 615 | ||||||
5.75%, Due 2/1/2018 | 775 | 865 | ||||||
Wells Fargo & Co., | ||||||||
5.625%, Due 12/11/2017 | 250 | 279 | ||||||
4.60%, Due 4/1/2021 | 380 | 384 | ||||||
Westpac Banking Corp., | ||||||||
2.25%, Due 11/19/2012 | 330 | 336 | ||||||
Willis North America, Inc., | ||||||||
6.20%, Due 3/28/2017 | 360 | 392 | ||||||
59,284 | ||||||||
Industrials - 6.77% | ||||||||
Alltel Corp., | ||||||||
7.00%, Due 7/1/2012 | 300 | 321 | ||||||
Altria Group, Inc., | ||||||||
9.70%, Due 11/10/2018 | 365 | 486 | ||||||
America Movil SAB de CV, | ||||||||
6.375%, Due 3/1/2035 | 350 | 381 | ||||||
American Honda Finance Corp., | ||||||||
4.625%, Due 4/2/2013D | 425 | 451 | ||||||
3.875%, Due 9/21/2020D | 150 | 147 | ||||||
Analog Devices, Inc., | ||||||||
3.00%, Due 4/15/2016 | $ | 170 | $ | 173 | ||||
Anheuser-Busch InBev Worldwide, Inc., | ||||||||
3.00%, Due 10/15/2012 | 470 | 484 | ||||||
5.00%, Due 4/15/2020 | 330 | 354 | ||||||
8.00%, Due 11/15/2039 | 125 | 171 | ||||||
Apache Corp., | ||||||||
5.10%, Due 9/1/2040 | 170 | 163 | ||||||
AT&T, Inc., | ||||||||
5.10%, Due 9/15/2014 | 860 | 949 | ||||||
5.625%, Due 6/15/2016 | 400 | 451 | ||||||
5.50%, Due 2/1/2018 | 300 | 331 | ||||||
6.80%, Due 5/15/2036 | 150 | 166 | ||||||
6.40%, Due 5/15/2038 | 1,840 | 1,963 | ||||||
5.35%, Due 9/1/2040D | 283 | 265 | ||||||
Baxter International, Inc., | ||||||||
1.80%, Due 3/15/2013 | 230 | 234 | ||||||
Becton Dickinson and Co., | ||||||||
3.25%, Due 11/12/2020 | 375 | 353 | ||||||
BP Capital Markets plc, | ||||||||
3.20%, Due 3/11/2016 | 855 | 862 | ||||||
Burlington Northern Santa Fe LLC, | ||||||||
5.75%, Due 3/15/2018 | 425 | 480 | ||||||
7.95%, Due 8/15/2030 | 205 | 264 | ||||||
5.75%, Due 5/1/2040 | 170 | 175 | ||||||
Cameron International Corp., | ||||||||
6.375%, Due 7/15/2018 | 215 | 244 | ||||||
Canadian National Railway Co., | ||||||||
5.55%, Due 5/15/2018 | 350 | 392 | ||||||
Canadian Natural Resources Ltd., | ||||||||
6.25%, Due 3/15/2038 | 365 | 403 | ||||||
Caterpillar Financial Services Corp., | ||||||||
1.90%, Due 12/17/2012 | 300 | 306 | ||||||
6.125%, Due 2/17/2014 | 620 | 701 | ||||||
2.75%, Due 6/24/2015 | 340 | 350 | ||||||
Cellco Partnership / Verizon Wireless Capital LLC, | ||||||||
3.75%, Due 5/20/2011 | 360 | 360 | ||||||
8.50%, Due 11/15/2018 | 415 | 539 | ||||||
Cisco Systems, Inc., | ||||||||
1.625%, Due 3/14/2014 | 575 | 578 | ||||||
Cliffs Natural Resources, Inc., | ||||||||
4.875%, Due 4/1/2021 | 225 | 228 | ||||||
Coca-Cola Refreshments USA, Inc., | ||||||||
7.375%, Due 3/3/2014 | 175 | 204 | ||||||
Comcast Cable Communications Holdings, Inc., | ||||||||
8.375%, Due 3/15/2013 | 128 | 144 | ||||||
Comcast Corp., | ||||||||
6.30%, Due 11/15/2017 | 480 | 552 | ||||||
5.875%, Due 2/15/2018 | 305 | 340 | ||||||
6.45%, Due 3/15/2037 | 2,630 | 2,791 | ||||||
6.55%, Due 7/1/2039 | 350 | 378 | ||||||
ConocoPhillips, | ||||||||
4.60%, Due 1/15/2015 | 900 | 989 | ||||||
5.20%, Due 5/15/2018 | 425 | 474 |
See accompanying notes
15
Table of Contents
American Beacon Balanced Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ||||||||
Cooper US, Inc., | ||||||||
2.375%, Due 1/15/2016 | 570 | 567 | ||||||
3.875%, Due 12/15/2020 | 250 | 248 | ||||||
CSX Corp., | ||||||||
5.50%, Due 4/15/2041 | 325 | 320 | ||||||
CVS Caremark Corp., | ||||||||
3.25%, Due 5/18/2015 | 170 | 174 | ||||||
Daimler Finance North America LLC, | ||||||||
5.75%, Due 9/8/2011 | 550 | 560 | ||||||
EI du Pont de Nemours & Co, | ||||||||
5.875%, Due 1/15/2014 | 95 | 106 | ||||||
3.25%, Due 1/15/2015 | 545 | 570 | ||||||
Ensco plc, | ||||||||
4.70%, Due 3/15/2021 | 280 | 283 | ||||||
EOG Resources, Inc., | ||||||||
2.50%, Due 2/1/2016 | 325 | 322 | ||||||
Express Scripts, Inc., | ||||||||
6.25%, Due 6/15/2014 | 570 | 639 | ||||||
France Telecom S.A., | ||||||||
4.375%, Due 7/8/2014 | 295 | 319 | ||||||
2.125%, Due 9/16/2015 | 150 | 149 | ||||||
GlaxoSmithKline Capital, Inc., | ||||||||
5.65%, Due 5/15/2018 | 250 | 284 | ||||||
Health Care REIT, Inc., | ||||||||
3.625%, Due 3/15/2016 | 240 | 240 | ||||||
5.25%, Due 1/15/2022 | 280 | 281 | ||||||
Hewlett-Packard Co., | ||||||||
6.125%, Due 3/1/2014 | 460 | 518 | ||||||
2.20%, Due 12/1/2015 | 325 | 323 | ||||||
Home Depot, Inc., | ||||||||
4.40%, Due 4/1/2021 | 300 | 302 | ||||||
Honeywell International, Inc., | ||||||||
4.25%, Due 3/1/2013 | 580 | 616 | ||||||
Hospira, Inc., | ||||||||
6.05%, Due 3/30/2017 | 260 | 292 | ||||||
International Business Machines Corp., | ||||||||
4.75%, Due 11/29/2012 | 480 | 510 | ||||||
7.625%, Due 10/15/2018 | 770 | 974 | ||||||
ITT Corp., | ||||||||
4.90%, Due 5/1/2014 | 490 | 530 | ||||||
John Deere Capital Corp., | ||||||||
4.90%, Due 9/9/2013 | 620 | 675 | ||||||
Johnson Controls, Inc., | ||||||||
5.00%, Due 3/30/2020 | 320 | 340 | ||||||
Kellogg Co., | ||||||||
4.25%, Due 3/6/2013 | 500 | 528 | ||||||
Koninklijke Philips Electronics N.V., | ||||||||
5.75%, Due 3/11/2018 | 335 | 379 | ||||||
Kraft Foods, Inc., | ||||||||
6.50%, Due 2/9/2040 | 245 | 273 | ||||||
Lorillard Tobacco Co., | ||||||||
8.125%, Due 6/23/2019 | 310 | 367 | ||||||
Marathon Oil Corp., | ||||||||
6.00%, Due 10/1/2017 | 415 | 473 | ||||||
Marathon Petroleum Corp., | ||||||||
3.50%, Due 3/1/2016D | 335 | 339 | ||||||
McKesson Corp., | ||||||||
3.25%, Due 3/1/2016 | 160 | 164 | ||||||
Medtronic, Inc., | ||||||||
3.00%, Due 3/15/2015 | 1,065 | 1,105 | ||||||
Norfolk Southern Corp., | ||||||||
5.75%, Due 4/1/2018 | 425 | 483 | ||||||
Northrop Grumman Corp., | ||||||||
5.05%, Due 8/1/2019 | 150 | 161 | ||||||
Novartis Capital Corp., | ||||||||
2.90%, Due 4/24/2015 | 695 | 718 | ||||||
Petrobras International Finance Co. — Pifco, | ||||||||
3.875%, Due 1/27/2016 | 360 | 365 | ||||||
6.875%, Due 1/20/2040 | 125 | 131 | ||||||
4.00%, Due 3/29/2021 | 400 | 398 | ||||||
Shell International Finance BV, | ||||||||
3.10%, Due 6/28/2015 | 340 | 353 | ||||||
Simon Property Group LP, | ||||||||
5.75%, Due 12/1/2015 | 460 | 515 | ||||||
10.35%, Due 4/1/2019 | 325 | 452 | ||||||
Teck Resources Ltd., | ||||||||
6.00%, Due 8/15/2040 | 165 | 171 | ||||||
Telecom Italia Capital S.A., | ||||||||
4.95%, Due 9/30/2014 | 195 | 206 | ||||||
Telefonica Emisiones SAU, | ||||||||
4.949%, Due 1/15/2015 | 185 | 198 | ||||||
6.421%, Due 6/20/2016 | 350 | 394 | ||||||
The Boeing Co, | ||||||||
1.875%, Due 11/20/2012 | 350 | 356 | ||||||
The Coca-Cola Co, | ||||||||
0.75%, Due 11/15/2013 | 930 | 922 | ||||||
The Dow Chemical Co, | ||||||||
2.50%, Due 2/15/2016 | 155 | 152 | ||||||
4.25%, Due 11/15/2020 | 195 | 191 | ||||||
Thomson Reuters Corp., | ||||||||
4.70%, Due 10/15/2019 | 150 | 159 | ||||||
Time Warner Cable, Inc., | ||||||||
5.85%, Due 5/1/2017 | 350 | 389 | ||||||
6.75%, Due 7/1/2018 | 755 | 870 | ||||||
7.30%, Due 7/1/2038 | 1,920 | 2,203 | ||||||
Time Warner, Inc., | ||||||||
4.875%, Due 3/15/2020 | 160 | 166 | ||||||
4.75%, Due 3/29/2021 | 325 | 331 | ||||||
Transocean, Inc., | ||||||||
6.80%, Due 3/15/2038 | 3,170 | 3,425 | ||||||
Tyco Electronics Group S.A., | ||||||||
6.55%, Due 10/1/2017 | 455 | 532 | ||||||
Tyco International Finance S.A., | ||||||||
3.75%, Due 1/15/2018 | 325 | 326 | ||||||
8.50%, Due 1/15/2019 | 385 | 492 | ||||||
Union Pacific Corp., | ||||||||
7.875%, Due 1/15/2019 | 350 | 443 | ||||||
United Parcel Service, Inc., | ||||||||
3.125%, Due 1/15/2021 | 745 | 699 | ||||||
United Technologies Corp., | ||||||||
6.125%, Due 7/15/2038 | 210 | 237 | ||||||
UnitedHealth Group, Inc., | ||||||||
4.875%, Due 2/15/2013 | 595 | 633 | ||||||
3.875%, Due 10/15/2020 | 325 | 315 | ||||||
Valero Energy Corp., | ||||||||
9.375%, Due 3/15/2019 | 155 | 201 | ||||||
6.625%, Due 6/15/2037 | 185 | 195 | ||||||
Verizon Communications, Inc., | ||||||||
5.50%, Due 4/1/2017 | 350 | 393 | ||||||
4.60%, Due 4/1/2021 | 380 | 388 | ||||||
6.90%, Due 4/15/2038 | 275 | 315 |
See accompanying notes
16
Table of Contents
American Beacon Balanced Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ||||||||
Viacom, Inc., | ||||||||
6.875%, Due 4/30/2036 | $ | 2,880 | $ | 3,224 | ||||
Vodafone Group plc, | ||||||||
6.15%, Due 2/27/2037 | 365 | 398 | ||||||
Wal-Mart Stores, Inc., | ||||||||
7.55%, Due 2/15/2030 | 350 | 451 | ||||||
5.625%, Due 4/15/2041 | 205 | 212 | ||||||
Xerox Corp., | ||||||||
5.65%, Due 5/15/2013 | 75 | 81 | ||||||
8.25%, Due 5/15/2014 | 160 | 188 | ||||||
4.25%, Due 2/15/2015 | 400 | 424 | ||||||
60,618 | ||||||||
Other Government - 0.08% | ||||||||
Province of Ontario Canada, | ||||||||
4.10%, Due 6/16/2014 | 350 | 379 | ||||||
3.15%, Due 12/15/2017 | 325 | 328 | ||||||
707 | ||||||||
Utilities - 1.41% | ||||||||
Columbus Southern Power Co., | ||||||||
5.50%, Due 3/1/2013 | 660 | 709 | ||||||
Commonwealth Edison Co., | ||||||||
4.00%, Due 8/1/2020 | 175 | 172 | ||||||
Consolidated Edison Co of New York, Inc., | ||||||||
5.50%, Due 12/1/2039 | 350 | 360 | ||||||
Dominion Resources, Inc., | ||||||||
1.80%, Due 3/15/2014 | 800 | 804 | ||||||
Duke Energy Carolinas LLC, | ||||||||
5.10%, Due 4/15/2018 | 350 | 385 | ||||||
Duke Energy Indiana, Inc., | ||||||||
6.05%, Due 6/15/2016 | 520 | 591 | ||||||
EDF S.A., | ||||||||
4.60%, Due 1/27/2020D | 320 | 330 | ||||||
Energy Transfer Partners LP, | ||||||||
8.50%, Due 4/15/2014 | 605 | 710 | ||||||
9.00%, Due 4/15/2019 | 260 | 332 | ||||||
Enterprise Products Operating LLC, | ||||||||
5.65%, Due 4/1/2013 | 400 | 432 | ||||||
6.125%, Due 10/15/2039 | 310 | 316 | ||||||
Exelon Generation Co LLC, | ||||||||
5.20%, Due 10/1/2019 | 275 | 286 | ||||||
6.25%, Due 10/1/2039 | 310 | 315 | ||||||
FirstEnergy Solutions Corp., | ||||||||
4.80%, Due 2/15/2015 | 175 | 186 | ||||||
Midamerican Energy Holdings Co., | ||||||||
5.875%, Due 10/1/2012 | 760 | 810 | ||||||
6.125%, Due 4/1/2036 | 350 | 376 | ||||||
ONEOK Partners LP, | ||||||||
6.125%, Due 2/1/2041 | 400 | 413 | ||||||
Pacific Gas & Electric Co., | ||||||||
6.25%, Due 12/1/2013 | 175 | 194 | ||||||
3.50%, Due 10/1/2020 | 300 | 281 | ||||||
Progress Energy, Inc., | ||||||||
4.875%, Due 12/1/2019 | 350 | 369 | ||||||
Sempra Energy, | ||||||||
6.50%, Due 6/1/2016 | 315 | 363 | ||||||
Southern Power Co., | ||||||||
6.25%, Due 7/15/2012 | 525 | 556 | ||||||
Spectra Energy Capital LLC, | ||||||||
5.668%, Due 8/15/2014 | 310 | 343 | ||||||
5.65%, Due 3/1/2020 | 310 | 333 | ||||||
TransCanada PipeLines Ltd., | ||||||||
7.625%, Due 1/15/2039 | 340 | 430 | ||||||
6.10%, Due 6/1/2040 | 170 | 183 | ||||||
Union Electric Co., | ||||||||
6.70%, Due 2/1/2019 | $ | 430 | $ | 500 | ||||
Virginia Electric and Power Co., | ||||||||
5.40%, Due 4/30/2018 | 350 | 388 | ||||||
Westar Energy, Inc., | ||||||||
6.00%, Due 7/1/2014 | 175 | 193 | ||||||
Xcel Energy, Inc., | ||||||||
5.613%, Due 4/1/2017 | 869 | 956 | ||||||
12,616 | ||||||||
Total Corporate Obligations (Cost $124,712) | 133,225 | |||||||
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS - 1.21% | ||||||||
Banc of America Commercial Mortgage, Inc., | ||||||||
5.317%, Due 9/10/2047, 2006-5 A2 | 332 | 337 | ||||||
5.634%, Due 4/10/2049, 2007-2 A2 | 491 | 501 | ||||||
Bear Stearns Commercial Mortgage Securities, | ||||||||
5.201%, Due 12/11/2038, 2006-PWR14 A4 | 665 | 721 | ||||||
5.54%, Due 9/11/2041, 2006-PW13 A4 | 1,070 | 1,179 | ||||||
4.831%, Due 7/11/2042, 2004-PWR5 A4 | 510 | 530 | ||||||
Citigroup Commercial Mortgage Trust, | ||||||||
4.38%, Due 10/15/2041, 2004-C2 A3 | 552 | 556 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust, | ||||||||
5.886%, Due 11/15/2044, 2007-CD5 A4 | 930 | 1,030 | ||||||
GS Mortgage Securities Corp II, | ||||||||
4.607%, Due 7/10/2039, 2005-GG4 A3 | 350 | 357 | ||||||
3.679%, Due 8/10/2043, 2010-C1 A1D | 386 | 396 | ||||||
3.849%, Due 12/10/2043, 2010-C2D | 546 | 563 | ||||||
3.645%, Due 3/10/2044, 2011-GC3 A2 | 500 | 510 | ||||||
JP Morgan Chase Commercial Mortgage Securities Corp., | ||||||||
4.678%, Due 7/15/2042, 2005-LDP2 A3A | 314 | 324 | ||||||
3.853%, Due 6/15/2043, 2010-C1 A1D | 688 | 713 | ||||||
4.388%, Due 2/16/2046, 2011-C3A A3D | 550 | 566 | ||||||
4.625%, Due 3/15/2046, 2005-LDP1 A2 | 409 | 415 | ||||||
5.932%, Due 2/12/2049, 2007-CB19 A4 | 550 | 606 | ||||||
5.629%, Due 2/12/2051, 2007-CB20 A2 | 664 | 686 | ||||||
LB-UBS Commercial Mortgage Trust, | ||||||||
5.424%, Due 2/15/2040, 2007-C1 A4 | 500 | 543 | ||||||
Wachovia Bank Commercial Mortgage Trust, | ||||||||
5.927%, Due 6/15/2049, 2007-C32 A2 | 310 | 325 | ||||||
Total Non-Agency Mortgage-Backed Obligations (Cost $9,996) | 10,858 |
See accompanying notes
17
Table of Contents
American Beacon Balanced Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ||||||||
ASSET-BACKED SECURITIES - 0.88% | $ | 353 | ||||||
American Express Credit Account Master Trust, | ||||||||
5.35%, Due 1/15/2014, 2006-2 A | 1,400 | 1,410 | ||||||
Citibank Credit Card Issuance Trust, | ||||||||
1.769%, Due 5/15/2014, 2009-A2 A2E | 650 | 659 | ||||||
CNH Equipment Trust, | ||||||||
1.17%, Due 5/15/2015, 2010-C A3 | 520 | 521 | ||||||
Discover Card Master Trust, | ||||||||
1.519%, Due 2/17/2015, 2009-A2 AE | 200 | 203 | ||||||
Ford Credit Auto Lease Trust, | ||||||||
1.04%, Due 3/15/2013, 2010-A A2D | 227 | 227 | ||||||
Ford Credit Floorplan Master Owner Trust, | ||||||||
1.769%, Due 9/15/2014, 2009-2 AE | 350 | 355 | ||||||
Harley-Davidson Motorcycle Trust, | ||||||||
1.87%, Due 2/15/2014, 2009-4 A3 | 350 | 352 | ||||||
Honda Auto Receivables Owner Trust, | ||||||||
3.30%, Due 9/15/2015, 2009-3 A4 | 470 | 487 | ||||||
Hyundai Auto Receivables Trust, | ||||||||
3.15%, Due 3/15/2016, 2009-A A4 | 270 | 281 | ||||||
John Deere Owner Trust, | ||||||||
2.59%, Due 10/15/2013, 2009-A A3 | 144 | 145 | ||||||
3.96%, Due 5/16/2016, 2009-A A4 | 265 | 274 | ||||||
Nissan Master Owner Trust Receivables, | ||||||||
1.369%, Due 1/15/2015, 2010-AA AD E | 650 | 657 | ||||||
Volkswagen Auto Loan Enhanced Trust, | ||||||||
0.66%, Due 5/21/2012, 2010-1 A2 | 74 | 74 | ||||||
6.24%, Due 7/20/2015, 2008-2 A4A | 400 | 424 | ||||||
World Omni Auto Receivables Trust, | ||||||||
1.11%, Due 5/15/2015, 2011-A A3 | 380 | 380 | ||||||
Total Asset-Backed Securities (Cost $7,764) | 7,867 | |||||||
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 6.00% | ||||||||
Federal Home Loan Mortgage Corporation | ||||||||
4.50%, Due 3/1/2019 | 396 | 421 | ||||||
5.00%, Due 10/1/2020 | 156 | 168 | ||||||
4.50%, Due 5/1/2025 | 2,031 | 2,149 | ||||||
3.50%, Due 10/1/2025 | 1,098 | 1,114 | ||||||
4.00%, Due 3/15/2026 | 805 | 848 | ||||||
5.00%, Due 8/1/2033 | 858 | 911 | ||||||
5.50%, Due 2/1/2034 | 720 | 779 | ||||||
5.00%, Due 3/1/2034 | 652 | 692 | ||||||
6.00%, Due 6/1/2034 | 502 | 555 | ||||||
6.00%, Due 8/1/2034 | 398 | 439 | ||||||
5.00%, Due 8/1/2035 | 620 | 657 | ||||||
5.00%, Due 9/1/2035 | 1,224 | 1,297 | ||||||
6.00%, Due 8/1/2036 | 335 | 367 | ||||||
5.50%, Due 11/1/2036 | 587 | 632 | ||||||
5.50%, Due 4/1/2037 | 797 | 858 | ||||||
5.50%, Due 5/1/2037 | 402 | 433 | ||||||
6.00%, Due 9/1/2037 | 256 | 280 | ||||||
5.50%, Due 12/1/2037 | 678 | 731 | ||||||
6.00%, Due 3/1/2038 | 1,183 | 1,296 | ||||||
5.50%, Due 5/1/2038 | 337 | 363 | ||||||
5.50%, Due 10/1/2039 | 734 | 790 | ||||||
4.00%, Due 1/1/2041 | 1,491 | 1,483 | ||||||
4.50%, Due 2/1/2041 | 1,495 | 1,538 | ||||||
18,801 | ||||||||
Federal National Mortgage Association | ||||||||
5.50%, Due 2/1/2014 | $ | 97 | $ | 105 | ||||
6.00%, Due 4/1/2016 | 126 | 137 | ||||||
5.00%, Due 12/1/2017 | 359 | 387 | ||||||
4.50%, Due 9/1/2018 | 240 | 256 | ||||||
4.00%, Due 8/1/2020 | 429 | 451 | ||||||
5.00%, Due 12/1/2023 | 281 | 300 | ||||||
4.50%, Due 4/1/2024 | 539 | 572 | ||||||
4.50%, Due 3/1/2025 | 534 | 566 | ||||||
4.50%, Due 5/1/2025 | 1,170 | 1,236 | ||||||
3.50%, Due 1/1/2026 | 393 | 399 | ||||||
5.00%, Due 3/1/2034 | 936 | 994 | ||||||
4.50%, Due 9/1/2034 | 452 | 469 | ||||||
5.50%, Due 12/1/2035 | 451 | 488 | ||||||
5.50%, Due 1/1/2036 | 514 | 556 | ||||||
5.00%, Due 2/1/2036 | 434 | 460 | ||||||
5.50%, Due 2/1/2036 | 421 | 455 | ||||||
5.00%, Due 3/1/2036 | 786 | 834 | ||||||
5.50%, Due 4/1/2036 | 562 | 607 | ||||||
6.00%, Due 9/1/2036 | 442 | 485 | ||||||
6.50%, Due 9/1/2036 | 941 | 1,062 | ||||||
5.50%, Due 12/1/2036 | 722 | 779 | ||||||
5.50%, Due 2/1/2037 | 726 | 783 | ||||||
5.50%, Due 8/1/2037 | 578 | 625 | ||||||
5.50%, Due 3/1/2038 | 1,182 | 1,273 | ||||||
5.00%, Due 6/1/2038 | 1,156 | 1,222 | ||||||
5.50%, Due 6/1/2038 | 1,541 | 1,661 | ||||||
6.00%, Due 9/1/2038 | 251 | 275 | ||||||
4.50%, Due 1/1/2040 | 1,821 | 1,877 | ||||||
5.00%, Due 7/1/2040 | 2,013 | 2,129 | ||||||
4.00%, Due 9/1/2040 | 1,414 | 1,410 | ||||||
5.00%, Due 1/1/2041 | 2,145 | 2,266 | ||||||
25,119 | ||||||||
Government National Mortgage Association | ||||||||
7.00%, Due 12/15/2025 | 189 | 217 | ||||||
6.50%, Due 8/15/2027 | 211 | 239 | ||||||
6.50%, Due 11/15/2027 | 218 | 248 | ||||||
7.50%, Due 12/15/2028 | 176 | 204 | ||||||
5.50%, Due 7/15/2033 | 543 | 595 | ||||||
6.00%, Due 12/15/2033 | 562 | 627 | ||||||
5.00%, Due 10/15/2039 | 3,025 | 3,260 | ||||||
5.50%, Due 2/20/2034 | 767 | 838 | ||||||
5.50%, Due 2/15/2040 | 1,189 | 1,295 | ||||||
4.50%, Due 10/20/2040 | 1,101 | 1,153 | ||||||
5.00%, Due 2/20/2041 | 1,070 | 1,148 | ||||||
9,824 | ||||||||
Total U.S. Agency Mortgage-Backed Obligations (Cost $51,547) | 53,744 | |||||||
U.S. AGENCY OBLIGATIONS - 4.76% | ||||||||
Federal Home Loan Mortgage Corporation | ||||||||
4.50%, Due 1/15/2015 | 22,140 | 24,494 | ||||||
Federal National Mortgage Association | ||||||||
5.125%, Due 1/2/2014 | 645 | 708 | ||||||
4.625%, Due 10/15/2014 | 1,000 | 1,109 | ||||||
6.25%, Due 5/15/2029 | 12,200 | 14,840 | ||||||
16,657 | ||||||||
See accompanying notes
18
Table of Contents
American Beacon Balanced Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ||||||||
Government National Mortgage Association | ||||||||
1.692%, Due 11/16/2035 | 347 | 347 | ||||||
2.989%, Due 3/16/2039 | 988 | 1,008 | ||||||
1,437 | ||||||||
Total U.S. Agency Obligations (Cost $37,905) | 42,588 | |||||||
U.S. TREASURY OBLIGATIONS - 4.68% | ||||||||
U.S. Treasury Bonds | ||||||||
7.875%, Due 2/15/2021 | 1,200 | 1,667 | ||||||
6.25%, Due 8/15/2023 | 800 | 1,005 | ||||||
6.875%, Due 8/15/2025 | 580 | 773 | ||||||
5.25%, Due 11/15/2028 | 750 | 858 | ||||||
4.75%, Due 2/15/2037 | 130 | 138 | ||||||
4.50%, Due 8/15/2039 | 1,630 | 1,655 | ||||||
4.25%, Due 11/15/2040 | 3,885 | 3,777 | ||||||
9,873 | ||||||||
U.S. Treasury Notes | ||||||||
1.375%, Due 1/15/2013 | 2,480 | 2,517 | ||||||
2.625%, Due 7/31/2014 | 5,000 | 5,236 | ||||||
2.25%, Due 1/31/2015 | 1,600 | 1,650 | ||||||
2.50%, Due 4/30/2015 | 1,000 | 1,039 | ||||||
2.00%, Due 1/31/2016 | 3,600 | 3,621 | ||||||
3.00%, Due 9/30/2016 | 600 | 627 | ||||||
3.125%, Due 10/31/2016 | 4,500 | 4,723 | ||||||
4.25%, Due 8/15/2015 | 1,200 | 1,330 | ||||||
3.75%, Due 11/15/2018 | 2,500 | 2,663 | ||||||
3.625%, Due 2/15/2020 | 1,975 | 2,054 | ||||||
3.625%, Due 2/15/2021 | 6,380 | 6,552 | ||||||
32,012 | ||||||||
Total U.S. Treasury Obligations (Cost $40,736) | 41,885 |
Par Amount | ||||||||
MUNICIPAL OBLIGATIONS - 0.38% | ||||||||
Municipal Electric Authority of Georgia, | ||||||||
6.64%, Due 4/1/2057 | 1,920 | 1,827 | ||||||
6.66%, Due 4/1/2057 | 710 | 668 | ||||||
New Jersey State Turnpike Authority, | ||||||||
7.102%, Due 1/1/2041 | 790 | 890 | ||||||
Total Municipal Obligations (Cost $3,407) | 3,385 | |||||||
Shares | ||||||||
SHORT-TERM INVESTMENTS - 4.62% | ||||||||
JPMorgan U.S. Government Money Market Fund | 20,398,562 | 20,399 |
Par Amount | ||||||||
United States Treasury Bill, | ||||||||
0.193%, Due 8/25/2011 | 5,900 | 5,896 | ||||||
United States Treasury Bill, | ||||||||
0.01%, Due 3/8/2012 | 15,120 | 15,089 | ||||||
Total Short-Term Investments (Cost $41,384) | 41,384 | |||||||
TOTAL INVESTMENTS - 99.32% (Cost $796,243) | 889,447 | |||||||
OTHER ASSETS, NET OF LIABILITIES - 0.68% | 6,113 | |||||||
TOTAL NET ASSETS - 100.00% | $ | 895,560 | ||||||
A | Non-income producing security. | |
B | ADR — American Depositary Receipt. | |
C | REIT | |
D | 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 $13,029 or 1.46% of net assets. The Fund has no right to demand registration of these securities. | |
E | 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. |
19
Table of Contents
American Beacon Balanced Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Futures Contracts
(dollars in thousands)
(dollars in thousands)
Unrealized | ||||||||||||||||
Number of | Appreciation/ | |||||||||||||||
Contracts | Expiration Date | Value | (Depreciation) | |||||||||||||
S&P 500 Mini E Index Future | 294 | June, 2011 | 19,988 | 802 | ||||||||||||
19,988 | 802 | |||||||||||||||
See accompanying notes
20
Table of Contents
American Beacon Large Cap Growth Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
COMMON STOCK - 96.19% | ||||||||
CONSUMER DISCRETIONARY - 15.77% | ||||||||
Auto Components - 0.54% | ||||||||
BorgWarner, Inc. | 6,800 | $ | 525 | |||||
Automobiles - 0.50% | ||||||||
Ford Motor Co. | 31,100 | 481 | ||||||
Hotels, Restaurants & Leisure - 3.29% | ||||||||
Ctrip.com International Ltd., ADRA | 9,600 | 468 | ||||||
Darden Restaurants, Inc. | 15,404 | 724 | ||||||
Las Vegas Sands Corp.B | 15,500 | 729 | ||||||
The Cheesecake Factory IncB | 25,377 | 746 | ||||||
Yum! Brands, Inc. | 9,400 | 504 | ||||||
3,171 | ||||||||
Household Durables - 0.88% | ||||||||
Whirlpool Corp. | 9,829 | 847 | ||||||
Internet & Catalog Retail - 2.36% | ||||||||
Amazon.com, Inc.B | 5,850 | 1,150 | ||||||
priceline.com, Inc.B | 2,050 | 1,121 | ||||||
2,271 | ||||||||
Media - 1.22% | ||||||||
Scripps Networks Interactive, Inc. | 9,200 | 473 | ||||||
The Walt Disney Co. | 16,300 | 703 | ||||||
1,176 | ||||||||
Multiline Retail - 0.96% | ||||||||
Costco Wholesale Corp. | 6,000 | 485 | ||||||
Dollar General Corp.B | 13,400 | 437 | ||||||
922 | ||||||||
Specialty Retail - 5.15% | ||||||||
AutoZone, Inc.B | 2,885 | 815 | ||||||
Dollar Tree, Inc.B | 16,003 | 920 | ||||||
Ltd Brands, Inc. | 25,551 | 1,051 | ||||||
O’Reilly Automotive, Inc.B | 8,850 | 523 | ||||||
PetSmart, Inc. | 18,911 | 797 | ||||||
Ross Stores, Inc. | 11,611 | 856 | ||||||
4,962 | ||||||||
Textiles & Apparel - 0.87% | ||||||||
Coach, Inc. | 13,943 | 834 | ||||||
Total Consumer Discretionary | 15,189 | |||||||
CONSUMER STAPLES - 1.93% | ||||||||
Food & Drug Retailing - 0.85% | ||||||||
Walgreen Co. | 19,162 | 819 | ||||||
Food Products - 0.49% | ||||||||
Green Mountain Coffee Roasters, Inc.B | 7,000 | 469 | ||||||
Personal Products - 0.59% | ||||||||
The Estee Lauder Cos Inc. | 5,900 | 572 | ||||||
Total Consumer Staples | 1,860 | |||||||
ENERGY - 6.99% | ||||||||
Energy Equipment & Services - 3.58% | ||||||||
FMC Technologies, Inc.B | 20,000 | 930 | ||||||
Halliburton Co. | 9,600 | 485 | ||||||
Helmerich & Payne, Inc. | 12,753 | 846 | ||||||
Schlumberger Ltd. | 13,200 | 1,184 | ||||||
3,445 | ||||||||
Oil & Gas - 3.41% | ||||||||
Concho Resources, Inc.B | 4,500 | 481 | ||||||
Occidental Petroleum Corp. | 17,137 | 1,958 | ||||||
Peabody Energy Corp. | 12,672 | 847 | ||||||
3,286 | ||||||||
Total Energy | 6,731 | |||||||
FINANCIALS - 6.58% | ||||||||
Diversified Financials - 5.78% | ||||||||
American Express Co. | 16,743 | 822 | ||||||
Ameriprise Financial, Inc. | 13,575 | 842 | ||||||
CME Group, Inc. | 1,500 | 444 | ||||||
Franklin Resources, Inc. | 5,300 | 684 | ||||||
IntercontinentalExchange, Inc.B | 3,550 | 427 | ||||||
JPMorgan Chase & Co. | 16,000 | 730 | ||||||
TD Ameritrade Holding Corp. | 20,800 | 448 | ||||||
The Charles Schwab Corp. | 25,000 | 458 | ||||||
The Goldman Sachs Group Inc. | 4,700 | 710 | ||||||
5,565 | ||||||||
Real Estate - 0.80% | ||||||||
CB Richard Ellis Group, Inc.B | 29,000 | 775 | ||||||
Total Financials | 6,340 | |||||||
HEALTH CARE - 8.51% | ||||||||
Biotechnology - 0.78% | ||||||||
Gilead Sciences, Inc.B | 19,301 | 750 | ||||||
Health Care Equipment & Supplies - 1.09% | ||||||||
Edwards Lifesciences Corp.B | 2,900 | 250 | ||||||
Intuitive Surgical, Inc.B | 1,000 | 350 | ||||||
Varian Medical Systems, Inc. | 6,400 | 449 | ||||||
1,049 | ||||||||
Health Care Providers & Services - 5.31% | ||||||||
AmerisourceBergen Corp. | 22,379 | 909 | ||||||
Cardinal Health, Inc. | 20,439 | 893 | ||||||
Express Scripts, Inc.B | 36,269 | 2,058 | ||||||
UnitedHealth Group, Inc. | 25,409 | 1,251 | ||||||
5,111 | ||||||||
Pharmaceuticals - 1.33% | ||||||||
Mylan, Inc.B | 18,600 | 464 | ||||||
Perrigo Co. | 1,550 | 140 | ||||||
Shire plc, ADRA | 7,300 | 680 | ||||||
1,284 | ||||||||
Total Health Care | 8,194 | |||||||
INDUSTRIALS - 18.96% | ||||||||
Aerospace & Defense - 1.46% | ||||||||
Goodrich Corp. | 5,500 | 486 | ||||||
United Technologies Corp. | 10,300 | 923 | ||||||
1,409 | ||||||||
Air Freight & Couriers - 0.54% | ||||||||
CH Robinson Worldwide, Inc. | 6,500 | 521 | ||||||
See accompanying notes
21
Table of Contents
American Beacon Large Cap Growth Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000) | ||||||||
Construction & Engineering - 0.83% | ||||||||
Fluor Corp. | 11,400 | $ | 797 | |||||
Industrial Conglomerates - 2.65% | ||||||||
General Electric Co. | 38,640 | 790 | ||||||
Honeywell International, Inc. | 14,315 | 877 | ||||||
KBR, Inc. | 23,146 | 888 | ||||||
2,555 | ||||||||
Machinery - 10.24% | ||||||||
Caterpillar, Inc. | 7,395 | 853 | ||||||
Cummins, Inc. | 7,791 | 936 | ||||||
Danaher Corp. | 23,300 | 1,287 | ||||||
Deere & Co. | 18,614 | 1,816 | ||||||
Dover Corp. | 12,660 | 861 | ||||||
Eaton Corp. | 15,678 | 839 | ||||||
Illinois Tool Works, Inc. | 13,800 | 806 | ||||||
Joy Global, Inc. | 8,704 | 879 | ||||||
Oshkosh Corp. | 22,840 | 723 | ||||||
Parker Hannifin Corp. | 9,119 | 860 | ||||||
9,860 | ||||||||
Road & Rail - 2.31% | ||||||||
Union Pacific Corp. | 21,525 | 2,227 | ||||||
Trading Companies & Distributors - 0.93% | ||||||||
WW Grainger, Inc. | 5,883 | 892 | ||||||
Total Industrials | 18,261 | |||||||
INFORMATION TECHNOLOGY - 32.33% | ||||||||
Communications Equipment - 1.20% | ||||||||
Cisco Systems, Inc. | 44,215 | 776 | ||||||
Juniper Networks, Inc.B | 9,800 | 376 | ||||||
1,152 | ||||||||
Computers & Peripherals - 11.94% | ||||||||
Apple, Inc. | 8,620 | 3,001 | ||||||
Dell, Inc.B | 52,497 | 814 | ||||||
EMC Corp/Massachusetts | 76,785 | 2,176 | ||||||
Hewlett-Packard Co. | 16,546 | 668 | ||||||
International Business Machines Corp. | 5,116 | 873 | ||||||
Lexmark International, Inc.B | 20,947 | 676 | ||||||
NetApp, Inc.B | 9,600 | 499 | ||||||
SanDisk Corp.B | 18,156 | 892 | ||||||
Teradata Corp.B | 17,039 | 953 | ||||||
Western Digital Corp.B | 24,084 | 959 | ||||||
11,511 | ||||||||
Internet Software & Services - 2.99% | ||||||||
Baidu Inc/China, ADRA B | 5,050 | 750 | ||||||
Google, Inc.B | 3,059 | 1,664 | ||||||
VeriSign, Inc. | 12,500 | 462 | ||||||
2,876 | ||||||||
IT Consulting & Services - 2.82% | ||||||||
Cognizant Technology Solutions Corp.B | 24,000 | 1,989 | ||||||
Visa, Inc. | 9,250 | 723 | ||||||
2,712 | ||||||||
Semiconductor Equipment & Products - 6.80% | ||||||||
Altera Corp. | 31,331 | 1,526 | ||||||
Intel Corp. | 34,521 | 801 | ||||||
QLogic Corp.B | 45,227 | 813 | ||||||
QUALCOMM, Inc. | 25,600 | 1,455 | ||||||
Skyworks Solutions, Inc. | 21,852 | 687 | ||||||
Texas Instruments, Inc. | 35,930 | 1,277 | ||||||
6,559 | ||||||||
Software - 6.58% | ||||||||
Autodesk, Inc. | 14,700 | 661 | ||||||
Cerner Corp.B | 4,300 | 517 | ||||||
Citrix Systems, Inc.B | 9,200 | 776 | ||||||
Intuit, Inc.B | 9,300 | 517 | ||||||
Microsoft Corp. | 27,145 | 706 | ||||||
Oracle Corp. | 63,226 | 2,279 | ||||||
Salesforce.com, Inc.B | 4,400 | 610 | ||||||
VMware, Inc.B | 2,900 | 277 | ||||||
6,343 | ||||||||
Total Information Technology | 31,153 | |||||||
MATERIALS - 4.39% | ||||||||
Chemicals - 1.42% | ||||||||
Albemarle Corp. | 13,992 | 987 | ||||||
Ecolab, Inc. | 7,150 | 377 | ||||||
1,364 | ||||||||
Metals & Mining - 2.97% | ||||||||
Cliffs Natural Resources, Inc. | 6,160 | 577 | ||||||
Freeport-McMoRan Copper & Gold, Inc. | 15,254 | 840 | ||||||
Walter Energy, Inc. | 10,501 | 1,452 | ||||||
2,869 | ||||||||
Total Materials | 4,233 | |||||||
TELECOMMUNICATION SERVICES - 0.73% | ||||||||
American Tower Corp. | 13,400 | 701 | ||||||
Total Common Stock (Cost $67,743) | 92,662 | |||||||
SHORT-TERM INVESTMENTS - 3.14% (Cost $3,024) | ||||||||
JPMorgan U.S. Government Money Market Fund | 3,024,233 | 3,024 | ||||||
TOTAL INVESTMENTS - 99.33% (Cost $70,767) | 95,686 | |||||||
OTHER ASSETS, NET OF LIABILITIES - 0.67% | 648 | |||||||
TOTAL NET ASSETS - 100.00% | $ | 96,334 | ||||||
Percentages are stated as a percent of net assets.
A | ADR — American Depositary Receipt. | |
B | Non-income producing security. |
See accompanying notes
22
Table of Contents
American Beacon Large Cap Growth Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Futures Contracts
(dollars in thousands)
(dollars in thousands)
Unrealized | ||||||||||||||||
Number of | Appreciation/ | |||||||||||||||
Contracts | Expiration Date | Value | (Depreciation) | |||||||||||||
S&P 500 Mini E Index Future | 48 | June, 2011 | 3,263 | 107 | ||||||||||||
3,263 | 107 | |||||||||||||||
See accompanying notes
23
Table of Contents
American Beacon Mid-Cap Value Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000 | ) | |||||||
COMMON STOCK - 93.60% | ||||||||
CONSUMER DISCRETIONARY - 12.21% | ||||||||
Hotels, Restaurants & Leisure - 2.14% | ||||||||
International Game Technology | 85,200 | $ | 1,507 | |||||
Royal Caribbean Cruises Ltd. | 26,900 | 1,071 | ||||||
2,578 | ||||||||
Household Durables - 2.84% | ||||||||
Fortune Brands, Inc. | 16,400 | 1,067 | ||||||
Newell Rubbermaid, Inc. | 28,000 | 534 | ||||||
Sealy Corp. | 93,775 | 248 | ||||||
Stanley Black & Decker, Inc. | 21,600 | 1,569 | ||||||
3,418 | ||||||||
Media - 1.72% | ||||||||
Omnicom Group, Inc. | 42,150 | 2,073 | ||||||
Multiline Retail - 1.36% | ||||||||
JC Penney Co., Inc. | 42,775 | 1,645 | ||||||
Specialty Retail - 4.15% | ||||||||
Hanesbrands, Inc.A | 48,600 | 1,580 | ||||||
Ltd Brands, Inc. | 29,200 | 1,202 | ||||||
Rent-A-Center, Inc. | 38,850 | 1,183 | ||||||
The Sherwin-Williams Co. | 12,675 | 1,043 | ||||||
5,008 | ||||||||
Total Consumer Discretionary | 14,722 | |||||||
CONSUMER STAPLES - 3.09% | ||||||||
Personal Products - 0.98% | ||||||||
Avon Products, Inc. | 40,175 | 1,180 | ||||||
Tobacco - 2.11% | ||||||||
Lorillard, Inc. | 12,000 | 1,279 | ||||||
Reynolds American, Inc. | 34,100 | 1,265 | ||||||
2,544 | ||||||||
Total Consumer Staples | 3,724 | |||||||
ENERGY - 3.41% | ||||||||
Murphy Oil Corp. | 19,800 | 1,534 | ||||||
Seadrill Ltd. | 45,800 | 1,633 | ||||||
Spectra Energy Corp. | 32,500 | 944 | ||||||
Total Energy | 4,111 | |||||||
FINANCIALS - 26.76% | ||||||||
Banks - 6.51% | ||||||||
Comerica, Inc. | 22,675 | 860 | ||||||
Fifth Third Bancorp | 178,950 | 2,374 | ||||||
KeyCorp. | 122,000 | 1,058 | ||||||
New York Community Bancorp, Inc. | 56,600 | 940 | ||||||
PNC Financial Services Group, Inc. | 24,800 | 1,546 | ||||||
Regions Financial Corp. | 145,250 | 1,066 | ||||||
7,844 | ||||||||
Diversified Financials - 6.08% | ||||||||
Ameriprise Financial, Inc. | 20,900 | 1,297 | ||||||
Capital One Financial Corp. | 33,600 | 1,839 | ||||||
Discover Financial Services | 70,500 | 1,751 | ||||||
SLM Corp. | 73,400 | 1,218 | ||||||
The Western Union Co. | 57,700 | 1,226 | ||||||
7,331 | ||||||||
Insurance - 10.99% | ||||||||
Axis Capital Holdings Ltd. | 47,875 | 1,693 | ||||||
Chubb Corp. | 9,300 | 606 | ||||||
Delphi Financial Group, Inc. | 56,500 | 1,805 | ||||||
Protective Life Corp. | 57,425 | 1,545 | ||||||
RenaissanceRe Holdings Ltd. | 24,425 | 1,717 | ||||||
Torchmark Corp. | 26,675 | 1,785 | ||||||
Validus Holdings Ltd. | 37,607 | 1,224 | ||||||
Willis Group Holdings plc | 40,400 | 1,669 | ||||||
XL Group plc | 49,600 | 1,211 | ||||||
13,255 | ||||||||
Real Estate - 3.18% | ||||||||
Annaly Capital Management, Inc.B | 42,200 | 753 | ||||||
Essex Property Trust, Inc. | 8,700 | 1,179 | ||||||
Hospitality Properties TrustB | 78,725 | 1,901 | ||||||
3,833 | ||||||||
Total Financials | 32,263 | |||||||
HEALTH CARE - 11.35% | ||||||||
Health Care Equipment & Supplies - 3.55% | ||||||||
Becton Dickinson and Co. | 13,800 | 1,186 | ||||||
Immucor, Inc.A | 56,225 | 1,227 | ||||||
Zimmer Holdings, Inc.A | 28,625 | 1,868 | ||||||
4,281 | ||||||||
Health Care Providers & Services - 6.33% | ||||||||
Aetna, Inc. | 41,100 | 1,701 | ||||||
Cardinal Health, Inc. | 31,500 | 1,376 | ||||||
CIGNA Corp. | 28,900 | 1,353 | ||||||
Coventry Health Care, Inc.A | 52,300 | 1,688 | ||||||
Omnicare, Inc. | 48,100 | 1,511 | ||||||
7,629 | ||||||||
Pharmaceuticals - 1.47% | ||||||||
Forest Laboratories, Inc.A | 53,425 | 1,772 | ||||||
Total Health Care | 13,682 | |||||||
INDUSTRIALS - 18.93% | ||||||||
Aerospace & Defense - 6.61% | ||||||||
Curtiss-Wright Corp. | 49,575 | 1,648 | ||||||
Goodrich Corp. | 11,700 | 1,034 | ||||||
L-3 Communications Holdings, Inc. | 43,550 | 3,492 | ||||||
Spirit Aerosystems Holdings, Inc.A | 72,875 | 1,793 | ||||||
7,967 | ||||||||
Building Products - 2.02% | ||||||||
Masco Corp. | 181,050 | 2,430 | ||||||
Commercial Services & Supplies - 2.75% | ||||||||
Apollo Group, Inc.A | 21,850 | 875 | ||||||
Con-way, Inc. | 41,850 | 1,628 | ||||||
Dun & Bradstreet Corp. | 9,900 | 814 | ||||||
3,317 | ||||||||
Electrical Equipment - 4.88% | ||||||||
Brady Corp. | 58,350 | 2,201 | ||||||
Molex, Inc. | 68,900 | 1,860 | ||||||
TE Connectivity Ltd. | 50,800 | 1,821 | ||||||
5,882 | ||||||||
Machinery - 2.67% | ||||||||
Eaton Corp. | 20,200 | 1,081 | ||||||
ITT Corp. | 16,100 | 930 |
See accompanying notes
24
Table of Contents
American Beacon Mid-Cap Value Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | Value | |||||||
($000 | ) | |||||||
SPX Corp. | 14,000 | $ | 1,211 | |||||
3,222 | ||||||||
Total Industrials | 22,818 | |||||||
INFORMATION TECHNOLOGY - 7.10% | ||||||||
Electronic Equipment & Instruments - 2.39% | ||||||||
Avnet, Inc. | 51,525 | 1,871 | ||||||
Ingram Micro, Inc.A | 53,350 | 999 | ||||||
2,870 | ||||||||
IT Consulting & Services - 0.90% | ||||||||
Computer Sciences Corp. | 21,400 | 1,091 | ||||||
Office Electronics - 1.22% | ||||||||
Xerox Corp. | 145,400 | 1,467 | ||||||
Semiconductor Equipment & Products - 1.23% | ||||||||
Microchip Technology, Inc. | 36,200 | 1,486 | ||||||
Software - 1.36% | ||||||||
CA, Inc. | 66,800 | 1,643 | ||||||
Total Information Technology | 8,557 | |||||||
MATERIALS - 4.27% | ||||||||
Chemicals - 1.35% | ||||||||
PPG Industries, Inc. | 17,225 | 1,631 | ||||||
Containers & Packaging - 2.92% | ||||||||
Jarden Corp. | 48,725 | 1,773 | ||||||
Sealed Air Corp. | 67,600 | 1,742 | ||||||
3,515 | ||||||||
Total Materials | 5,146 | |||||||
UTILITIES - 6.48% | ||||||||
Electric Utilities - 5.07% | ||||||||
CenterPoint Energy, Inc. | 74,100 | 1,378 | ||||||
Edison International | 29,725 | 1,167 | ||||||
Entergy Corp. | 21,225 | 1,481 | ||||||
Pinnacle West Capital Corp. | 22,700 | 985 | ||||||
Xcel Energy, Inc. | 45,300 | 1,102 | ||||||
6,113 | ||||||||
Gas Utilities - 1.41% | ||||||||
MDU Resources Group, Inc. | 44,450 | 1,062 | ||||||
Oneok, Inc. | 9,200 | 643 | ||||||
1,705 | ||||||||
Total Utilities | 7,818 | |||||||
Total Common Stock (Cost $89,436) | 112,841 | |||||||
PREFERRED STOCK - 0.63% (Cost $940) | ||||||||
CONSUMER DISCRETIONARY - 0.63% | ||||||||
Sealy Corp.A | 9,571 | 762 | ||||||
SHORT-TERM INVESTMENTS - 7.12% (Cost $8,586) | ||||||||
JPMorgan U.S. Government Money Market Fund | 8,586,292 | 8,586 | ||||||
TOTAL INVESTMENTS - 101.35% (Cost $98,962) | 122,189 | |||||||
LIABILITIES, NET OF OTHER ASSETS — (1.35%) | (1,632 | ) | ||||||
TOTAL NET ASSETS - 100.00% | $ | 120,557 | ||||||
Percentages are stated as a percent of net assets.
A | Non-income producing security. | |
B | REIT |
See accompanying notes
25
Table of Contents
American Beacon Mid-Cap Value Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Futures Contracts
(dollars in thousands)
(dollars in thousands)
Unrealized | ||||||||||||||||
Number of | Appreciation/ | |||||||||||||||
Contracts | Expiration Date | Value | (Depreciation) | |||||||||||||
S&P Midcap 400 Mini E Index Future | 9,100 | June, 2011 | 9,223 | 194 | ||||||||||||
9,223 | 194 | |||||||||||||||
See accompanying notes
26
Table of Contents
American Beacon Funds
Statements of Assets and Liabilities
April 30, 2011 (Unaudited)(in thousands except share and per share amounts)
Statements of Assets and Liabilities
April 30, 2011 (Unaudited)(in thousands except share and per share amounts)
Balanced | Large Cap | Mid-Cap | ||||||||||
Fund | Growth Fund | Value Fund | ||||||||||
Assets: | ||||||||||||
Investments in unaffiliated securities, at value A. | $ | 889,447 | $ | 95,686 | $ | 122,189 | ||||||
Cash | 9 | — | 1 | |||||||||
Deposit with brokers for futures contracts | 1,341 | 221 | 570 | |||||||||
Receivable for investments sold | 1,482 | 315 | 260 | |||||||||
Dividends and interest receivable | 3,454 | 41 | 98 | |||||||||
Receivable for fund shares sold | 1,354 | 587 | 234 | |||||||||
Receivable for tax reclaims | 37 | — | — | |||||||||
Receivable for expense reimbursement (Note 2) | — | — | 6 | |||||||||
Receivable for variation margin on open futures contracts. | 72 | 12 | 36 | |||||||||
Prepaid expenses | 54 | 66 | 89 | |||||||||
Total assets | 897,250 | 96,928 | 123,483 | |||||||||
Liabilities: | ||||||||||||
Payable for investments purchased | 1,242 | 534 | 2,663 | |||||||||
Payable for fund shares redeemed | 91 | — | 172 | |||||||||
Management and investment advisory fees payable (Note 2) | 188 | 39 | 54 | |||||||||
Administrative service and service fees payable (Note 2) | 81 | 4 | 15 | |||||||||
Professional fees payable | 26 | 11 | 11 | |||||||||
Trustee fees payable | 12 | 1 | 2 | |||||||||
Prospectus and shareholder reports | 15 | — | — | |||||||||
Other liabilities | 35 | 5 | 9 | |||||||||
Total liabilities | 1,690 | 594 | 2,926 | |||||||||
Net Assets | $ | 895,560 | $ | 96,334 | $ | 120,557 | ||||||
Analysis of Net Assets: | ||||||||||||
Paid-in-capital | 866,322 | 89,356 | 111,178 | |||||||||
Undistributed net investment income | (1,202 | ) | (5 | ) | 290 | |||||||
Accumulated net realized (loss) | (63,567 | ) | (18,042 | ) | (14,332 | ) | ||||||
Unrealized appreciation of investments, futures contracts, and foreign currency | 94,007 | 25,025 | 23,421 | |||||||||
Net assets | $ | 895,560 | $ | 96,334 | $ | 120,557 | ||||||
Shares outstanding (no par value): | ||||||||||||
Institutional Class | 2,553,559 | 33,545 | 4,005,582 | |||||||||
Y Class | 30,185 | 3,768 | 1,314 | |||||||||
Investor Class | 7,045,266 | N/A | 678,501 | |||||||||
Advisor Class | 439,669 | N/A | 6,365 | |||||||||
AMR Class | 58,850,202 | 13,770,550 | 6,337,522 | |||||||||
A Class | 26,355 | 72,976 | 11,636 | |||||||||
C Class | 15,255 | 194 | 121 | |||||||||
Net asset value, offering and redemption price per share: | ||||||||||||
Institutional Class | $ | 13.66 | $ | 6.89 | $ | 10.92 | ||||||
Y Class | $ | 13.69 | $ | 6.88 | $ | 10.92 | ||||||
Investor Class | $ | 12.64 | N/A | $ | 10.91 | |||||||
Advisor Class | $ | 13.11 | N/A | $ | 10.75 | |||||||
AMR Class | $ | 13.00 | $ | 6.94 | $ | 10.92 | ||||||
A Class (net asset value and redemption price) | $ | 12.76 | $ | 6.86 | $ | 10.82 | ||||||
A Class (offering price) | $ | 13.54 | $ | 7.28 | $ | 11.48 | ||||||
C Class | $ | 12.82 | $ | 6.85 | $ | 10.81 | ||||||
A Cost of investments in unaffiliated securities | $ | 796,243 | $ | 70,767 | $ | 98,962 |
See accompanying notes
27
Table of Contents
American Beacon Funds
Statements of Operations
Six Months ended April 30, 2011 (in thousands) (Unaudited)
Statements of Operations
Six Months ended April 30, 2011 (in thousands) (Unaudited)
Large Cap | ||||||||||||
Balanced | Growth | Mid-Cap | ||||||||||
Fund | Fund | Value Fund | ||||||||||
Investment Income: | ||||||||||||
Dividend income from unaffiliated securities (net of foreign taxes) A | $ | 6,771 | $ | 399 | $ | 1,182 | ||||||
Dividend income from affiliated securities | 1 | — | — | |||||||||
Interest income | 6,536 | — | — | |||||||||
Total investment income | 13,308 | 399 | 1,182 | |||||||||
Expenses: | ||||||||||||
Management and investment advisory fees (Note 2) | 995 | 238 | 322 | |||||||||
Administrative service fees (Note 2): | ||||||||||||
Institutional Class | 52 | — | 44 | |||||||||
Investor Class | 130 | — | 22 | |||||||||
Advisor Class | 9 | — | — | |||||||||
A Class | — | 1 | — | |||||||||
AMR Class | 189 | 22 | 17 | |||||||||
Transfer agent fees: | ||||||||||||
Institutional Class | 1 | — | 6 | |||||||||
Y Class | — | 2 | 2 | |||||||||
Investor Class | 4 | — | 1 | |||||||||
AMR Class | 20 | 4 | 3 | |||||||||
A Class | — | 1 | 2 | |||||||||
C Class | — | 2 | 2 | |||||||||
Custody and fund accounting fees | 51 | 5 | 6 | |||||||||
Professional fees | 28 | 15 | 15 | |||||||||
Registration fees and expenses | 44 | 14 | 29 | |||||||||
Service fees (Note 2): | ||||||||||||
Investor Class | 144 | — | 18 | |||||||||
Advisor Class | 8 | — | — | |||||||||
Distribution fees (Note 2): | ||||||||||||
Advisor Class | 8 | — | — | |||||||||
C Class | 1 | — | — | |||||||||
Prospectus and shareholder reports | 8 | 4 | 5 | |||||||||
Trustee fees | 31 | 3 | 4 | |||||||||
Other expenses | 46 | 5 | 11 | |||||||||
Total expenses | 1,769 | 316 | 509 | |||||||||
Net (fees waived and expenses reimbursed) (Note 2) | — | (4 | ) | (22 | ) | |||||||
Net expenses | 1,769 | 312 | 487 | |||||||||
Net investment income | 11,539 | 87 | 695 | |||||||||
Realized and unrealized gain (loss) on investments: | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments | 26,266 | 5,782 | 5,018 | |||||||||
Commission recapture (Note 1) | 14 | 1 | 4 | |||||||||
Futures contracts | 4,848 | 670 | 1,296 | |||||||||
Change in net unrealized appreciation or depreciation of: | ||||||||||||
Investments | 40,235 | 8,528 | 12,165 | |||||||||
Futures contracts | (611 | ) | (10 | ) | (223 | ) | ||||||
Net gain on investments | 70,752 | 14,971 | 18,260 | |||||||||
Net increase in net assets resulting from operations | $ | 82,291 | $ | 15,058 | $ | 18,955 | ||||||
A Foreign taxes | $ | 23 | $ | 1 | $ | — |
See accompanying notes
28
Table of Contents
American Beacon Funds
Statement of Changes in Net Assets (in thousands)
Statement of Changes in Net Assets (in thousands)
Balanced Fund | Large Cap Growth Fund | Mid-Cap Value Fund | ||||||||||||||||||||||
Six Months | Six Months | Year | Six Months | |||||||||||||||||||||
Ended | Year Ended | Ended | Ended | Ended | Year Ended | |||||||||||||||||||
April 30, | October 31, | April 30, | October | April 30, | October 31, | |||||||||||||||||||
2011 | 2010 | 2011 | 31, 2010 | 2011 | 2010 | |||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||
Increase (Decrease) in Net Assets: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 11,539 | $ | 24,341 | $ | 87 | $ | 143 | $ | 695 | $ | 967 | ||||||||||||
Net realized gain on investments, futures contracts, and foreign currency transactions | 31,128 | 27,481 | 6,453 | 4,153 | 6,318 | 1,543 | ||||||||||||||||||
Change in net unrealized appreciation or depreciation of investments, futures contracts, and foreign currency translations | 39,624 | 48,535 | 8,518 | 8,876 | 11,942 | 15,705 | ||||||||||||||||||
Net increase in net assets resulting from operations | 82,291 | 100,357 | 15,058 | 13,172 | 18,955 | 18,214 | ||||||||||||||||||
Distributions to Shareholders: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Institutional Class | (457 | ) | (1,651 | ) | — | — | (30 | ) | (15 | ) | ||||||||||||||
Y Class | (5 | ) | — | — | — | — | — | |||||||||||||||||
Investor Class | (846 | ) | (4,637 | ) | — | — | (343 | ) | (161 | ) | ||||||||||||||
Advisor Class | (55 | ) | (314 | ) | — | — | (1 | ) | — | |||||||||||||||
AMR Class | (10,904 | ) | (42,865 | ) | (167 | ) | (342 | ) | (753 | ) | (561 | ) | ||||||||||||
A Class | (2 | ) | — | — | — | — | — | |||||||||||||||||
C Class | (2 | ) | — | — | — | — | — | |||||||||||||||||
Net distributions to shareholders | (12,271 | ) | (49,467 | ) | (167 | ) | (342 | ) | (1,127 | ) | (737 | ) | ||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||
Proceeds from sales of shares | 30,336 | 75,404 | 12,917 | 46,887 | 54,917 | 42,825 | ||||||||||||||||||
Reinvestment of dividends and distributions | 12,233 | 49,350 | 167 | 342 | 1,127 | 736 | ||||||||||||||||||
Cost of shares redeemed | (89,577 | ) | (115,828 | ) | (28,774 | ) | (34,211 | ) | (55,454 | ) | (38,192 | ) | ||||||||||||
Redemption fees | — | — | — | — | 28 | 88 | ||||||||||||||||||
Net increase (decrease) in net assets from capital share transactions | (47,008 | ) | 8,926 | (15,690 | ) | 13,019 | 618 | 5,457 | ||||||||||||||||
Net increase (decrease) in net assets | 23,012 | 59,816 | (799 | ) | 25,849 | 18,446 | 22,934 | |||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 872,548 | 812,732 | 97,133 | 71,284 | 102,111 | 79,177 | ||||||||||||||||||
End of Period * | $ | 895,560 | $ | 872,548 | $ | 96,334 | $ | 97,133 | $ | 120,557 | $ | 102,111 | ||||||||||||
*Includes undistributed net investment income (loss) of | $ | (1,202 | ) | $ | (724 | ) | $ | (5 | ) | $ | 75 | $ | 290 | $ | 722 | |||||||||
See accompanying notes
29
Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
1. Organization and Significant Accounting Policies
American Beacon Funds (the “Trust”), which is comprise of 19 Funds, 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 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
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 | |
A Class | General public and investors investing through an intermediary with applicable sales charges | |
C Class | General public and investors investing through an intermediary with applicable sales charges | |
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.
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 fair 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”).
Futures are valued based upon the last sale price at the close of market on the principal exchange on which they are traded.
30
Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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 2 securities are fixed-income securities that are valued using observable inputs as stated above. | |||
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. During the period, there were no significant transfers between levels for the Funds. As of April 30, 2011 the investments were classified as described below: (in thousands)
Balanced Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 551,403 | — | — | $ | 551,403 | ||||||||||
Corporate Obligations | — | 133,225 | — | 133,225 | ||||||||||||
Non-Agency Mortgage Backed Obligations. | — | 10,858 | — | 10,858 | ||||||||||||
Asset Backed Securities | — | 7,867 | — | 7,867 | ||||||||||||
U.S. Agency Mortgage Backed Obligations | — | 53,744 | — | 53,744 | ||||||||||||
U.S. Agency Obligations | — | 42,588 | — | 42,588 | ||||||||||||
U.S. Treasury Obligations | — | 41,885 | — | 41,885 | ||||||||||||
Preferred Stock | 3,108 | — | — | 3,108 | ||||||||||||
Municipal Obligations | — | 3,385 | — | 3,385 | ||||||||||||
Short-Term Investments | 41,384 | — | — | 41,384 | ||||||||||||
Total Investments in Securities | $ | 595,895 | $ | 293,552 | $ | — | $ | 889,447 | ||||||||
Futures Contracts | $ | 802 | — | — | $ | 802 |
Large Cap Growth Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 92,662 | $ | — | $ | — | $ | 92,662 | ||||||||
Short-Term Investments | 3,024 | — | — | 3,024 | ||||||||||||
Total Investments in Securities | $ | 95,686 | $ | — | $ | — | $ | 95,686 | ||||||||
Futures Contracts | $ | 107 | — | — | $ | 107 |
Mid-Cap Value Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | 112,841 | — | — | 112,841 | ||||||||||||
Preferred Stock | 762 | — | — | 762 | ||||||||||||
Short-Term Investments | 8,586 | — | — | 8,586 | ||||||||||||
Total Investments in Securities | $ | 122,189 | $ | — | $ | — | $ | 122,189 | ||||||||
Futures Contracts | 194 | — | — | 194 |
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.
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American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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.
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 each day by the exchange on which they are traded.
Balanced
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2011 (in thousands)
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2011 (in thousands)
Liability | ||||||||
Statement of Assets and Liabilities | Derivatives | Total | ||||||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* | $ | 802 |
Effect of derivative instruments not accounted for as hedging instruments during the six months ended April 30, 2011 (in thousands)
Statement of Operations | Derivative | Total | ||||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 4,848 | |||||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | (611 | ) |
Large Cap Growth
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2011 (in thousands)
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2011 (in thousands)
Liability | ||||||||
Statement of Assets and Liabilities | Derivatives | Total | ||||||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* | $ | 107 |
Effect of derivative instruments not accounted for as hedging instruments during the six months ended April 30, 2011 (in thousands)
Statement of Operations | Derivative | Total | ||||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 670 | |||||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | (10 | ) |
Mid-Cap Value
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2011 (in thousands)
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2011 (in thousands)
Liability | ||||||||
Statement of Assets and Liabilities | Derivatives | Total | ||||||
Unrealized appreciation of investments, futures contracts, and foreign currency | Equity Contracts* | $ | 194 |
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American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
Effect of derivative instruments not accounted for as hedging instruments during the six months ended April 30, 2011 (in thousands)
Statement of Operations | Derivative | Total | ||||||
Net realized gain (loss) from futures contracts | Equity Contracts | $ | 1,296 | |||||
Change in net unrealized appreciation or depreciation of futures contracts | Equity Contracts | (223 | ) |
* | 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 Balanced Fund normally will be declared and paid quarterly. Dividends from net investment income of the Large Cap Growth and Mid-Cap Value 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 Fund’s 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.
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American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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 all investment advisory, fund management and securities lending 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. Investment assets of Funds are managed by multiple 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 unaffiliated investment advisors hired by the Manager to direct investment activities of the Funds. Management fees paid during the six months ended April 30, 2011 were as follows (dollars in thousands):
Amounts paid | Net Amounts | |||||||||||||||
Management | Management | to Investment | Retained by | |||||||||||||
Fee Rate | Fee | Advisors | Manager | |||||||||||||
Balanced | 0.175%-0.65 | % | $ | 995 | $ | 774 | $ | 221 | ||||||||
Large Cap Growth | 0.30%-0.60 | % | 238 | 215 | 23 | |||||||||||
Mid-Cap Value | 0.35%-0.90 | % | 322 | 295 | 27 |
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 0.40% of the average daily net assets of the A and C Classes, 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. Administrative fees for the Y and C Classes for the six months ended April 30, 2011 were less than $500.
Distribution Plans
The Trust, except for the Advisor, A and C Classes 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.
Separate Distribution Plans (the “Distribution Plans”) have been adopted pursuant to Rule 12b-1 under the Act for the Advisor, A and C Classes of the Funds. Under the Distribution Plans, as compensation for distribution assistance, the Manager receives an annual fee of 0.25% of the average daily net assets of the Advisor and A Classes and 1.00% of the average daily net assets of the C 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. Distribution fees for the A Classes for the six months ended April 30, 2011 were less than $500.
Service Plans
The Manager and the Trust entered into Service Plans that obligate the Manager to oversee additional shareholder servicing of the Investor, Y, Advisor, A, and C 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, 0.15% of the average daily net assets of the A and C Classes, 0.25% of the average daily net assets of the
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American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
Advisor Class and up to 0.375% of the average daily net assets of the Investor Class of each Fund. Service fees for the Y, A, and C Classes for the six months ended April 30, 2011 were less than $500.
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 the Select Funds an annualized fee of 0.09% of average daily net assets of the Select Funds. During the six months ended April 30, 2011, fees earned by the Manager as a result of the Balanced Fund’s investment in the Select Funds was $885.
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, 2011, the Balanced Fund borrowed $13,407,649 from the Money Market Select Fund for one day at 0.81% with an interest charge of $298 and the Large Cap Growth Fund borrowed $187,876 from the Money Market Select Fund for one day at 0.86% with an interest charge of $4.
Reimbursement of Expenses
The Manager voluntarily and or contractually agreed to reimburse the following Funds to the extent that total annual fund operating expenses exceed the Fund’s expense cap. Of these amounts $6,000 was receivable from the Manager at April 30, 2011 for the Mid-Cap Value Fund. For the period ended April 30, 2011, the Manager waived or reimbursed expenses as follows:
Expense Cap | ||||||||||||||||
11/1/10 | 3/1/11 | Waived or | ||||||||||||||
to | to | Reimbursed | ||||||||||||||
Fund | Class | 2/28/11 | 4/30/11 | Expenses | ||||||||||||
Large Cap Growth | Y | * | N/A | N/A | $ | 1,651 | ||||||||||
Large Cap Growth | A | * | N/A | N/A | 1,293 | |||||||||||
Large Cap Growth | C | — | 2.20 | % | 1,648 | |||||||||||
Mid-Cap Value | Institutional | 0.98 | % | 0.98 | % | 13,227 | ||||||||||
Mid-Cap Value | Y | 1.08 | % | 1.08 | % | 1,653 | ||||||||||
Mid-Cap Value | Investor | 1.23 | % | 1.23 | % | 3,424 | ||||||||||
Mid-Cap Value | Advisor | 1.49 | % | 1.49 | % | 215 | ||||||||||
Mid-Cap Value | A | 1.49 | % | 1.49 | % | 1,677 | ||||||||||
Mid-Cap Value | C | 2.24 | % | 2.24 | % | 1,647 |
* | Voluntary reimbursement. |
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. The carryover of excess expenses potentially reimbursable to the Manager but not recorded as a liability for the Mid-Cap Value Fund are $25,000, $17,000 and $22,000 expiring 2012, 2013 and 2014, respectively. During the six months ended April 30, 2011, the Funds have not recorded a liability for potential reimbursement, due to the current assessment that a reimbursement is unlikely.
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American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
3. Federal Income and Excise Taxes
It is the policy of each fund to qualify as a regulated investment company, by complying with all applicable provisions of the Code, and to make distribution of taxable income sufficient to relieve it from substantially all federal income and excise taxes. For federal income tax purposes, each Fund is treated as a single entity for the purpose of determining such qualification.
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, 2010 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, 2011 and fiscal year ended October 31, 2010 were as follows (in thousands):
Balanced | Large Cap Growth | Mid-Cap Value | ||||||||||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||||||||
April 30, | October 31, | April 30, | October 31, | April 30, | October 31, | |||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
Distributions paid from: | ||||||||||||||||||||||||
Ordinary income* | ||||||||||||||||||||||||
Institutional Class | $ | 457 | $ | 1,651 | $ | — | $ | — | $ | 30 | $ | 15 | ||||||||||||
Y Class | 5 | — | — | — | — | |||||||||||||||||||
Investor Class | 846 | 4,637 | — | — | 343 | 161 | ||||||||||||||||||
Advisor Class | 55 | 314 | — | — | 1 | — | ||||||||||||||||||
AMR Class | 10,904 | 42,865 | 167 | 342 | 753 | 561 | ||||||||||||||||||
A Class | 2 | — | — | — | — | — | ||||||||||||||||||
C Class | 2 | — | — | — | — | — | ||||||||||||||||||
Total distributions paid | $ | 12,271 | $ | 49,467 | $ | 167 | $ | 342 | $ | 1,127 | $ | 737 | ||||||||||||
* | For tax purposes, short-term capital gains are considered ordinary income distributions. |
As of April 30, 2011, the components of distributable earnings on a tax basis were as follows (in thousands):
Balanced | Large Cap Growth | Mid-Cap Value | ||||||||||
Cost basis of investments for federal income tax purpose | $ | 827,795 | $ | 71,218 | $ | 99,641 | ||||||
Unrealized appreciation | 120,057 | 25,128 | 23,830 | |||||||||
Unrealized depreciation | (58,409 | ) | (660 | ) | (1,282 | ) | ||||||
Net unrealized appreciation (depreciation) | 61,652 | 24,468 | 22,548 | |||||||||
Undistributed ordinary income | (333 | ) | (5 | ) | 290 | |||||||
Undistributed long-term gain (loss) | (32,888 | ) | (17,592 | ) | (13,652 | ) | ||||||
Other temporary differences | 807 | 107 | 193 | |||||||||
Distributable earnings (losses) | $ | 29,238 | $ | 6,978 | $ | 9,379 | ||||||
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
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American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
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 book amortization of premium, paydown reclasses, Section 732 basis adjustments, non-deductable expenses, and dividend reclasses that have been reclassified as of April 30, 2011 (in thousands):
Balanced | Large Cap Growth | Mid-Cap Value | ||||||||||
Paid-in-capital | $ | — | $ | — | $ | — | ||||||
Undistributed net investment income | 254 | — | — | |||||||||
Accumulated net realized gain (loss) | (255 | ) | — | — | ||||||||
Unrealized appreciation (depreciation) of investments, futures contracts and foreign currency | 1 | — | — |
At April 30, 2011 capital loss carry forward positions for federal income tax purposes were as follows (in thousands):
Fund | 2016 | 2017 | Total | |||||||||
Balanced | $ | 7,659 | $ | 24,427 | $ | 32,086 | ||||||
Large Cap Growth | 4,622 | 12,863 | 17,485 | |||||||||
Mid-Cap Value | 5,062 | 8,397 | 13,459 |
The Balanced, Large Cap Growth, and Mid-Cap Value Funds utilized $31,161, $6,377, and $6,001, respectively of net capital loss carryovers for the six months ended April 30, 2011.
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, 2011 were as follows (in thousands):
Balanced | Large Cap Growth | Mid-Cap Value | ||||||||||
Purchases (excluding U.S. government securities) | $ | 204,427 | $ | 28,796 | $ | 21,090 | ||||||
Sales and maturities (excluding U.S. government securities) | 245,775 | 39,320 | 20,024 | |||||||||
Purchases of U.S. government securities | 60,115 | — | — | |||||||||
Sales and maturities of U.S. government securities | 58,950 | — | — |
A summary of the Funds’ direct transactions in the Select Funds for the six months ended April 30, 2011 is set forth below (in thousands):
October 31, 2010 | April 30, 2011 | |||||||||||||||||||
Affiliate | Shares/Market Value | Purchases | Sales | Shares/Market Value | ||||||||||||||||
Balanced | USG Select Fund | $ | 2,900 | $ | — | $ | 2,900 | $ | — |
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American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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, 2011
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Balanced Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | 419 | $ | 5,573 | 26 | $ | 348 | 823 | $ | 9,996 | 43 | $ | 549 | ||||||||||||||||||||
Reinvestment of dividends | 34 | 451 | 1 | 5 | 66 | 815 | 4 | 55 | ||||||||||||||||||||||||
Shares redeemed | (546 | ) | (7,228 | ) | — | (1 | ) | (1,089 | ) | (13,297 | ) | (113 | ) | (1,455 | ) | |||||||||||||||||
Net increase (decrease) in shares outstanding | (93 | ) | $ | (1,204 | ) | 27 | $ | 352 | (200 | ) | $ | (2,486 | ) | (66 | ) | $ | (851 | ) | ||||||||||||||
AMR Class | A Class | C Class | ||||||||||||||||||||||
Balanced Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 1,063 | $ | 13,402 | 23 | $ | 282 | 15 | $ | 186 | |||||||||||||||
Reinvestment of dividends | 859 | 10,904 | — | 2 | — | 1 | ||||||||||||||||||
Shares redeemed | (5,349 | ) | (67,590 | ) | (1 | ) | (5 | ) | — | (1 | ) | |||||||||||||
Net increase (decrease) in shares outstanding | (3,427 | ) | $ | (43,284 | ) | 22 | $ | 279 | 15 | $ | 186 | |||||||||||||
Institutional Class | Y Class | AMR Class | ||||||||||||||||||||||
Large Cap Growth Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 23 | $ | 148 | 1 | $ | 5 | 1,903 | $ | 12,264 | |||||||||||||||
Reinvestment of dividends | — | — | — | — | 26 | 167 | ||||||||||||||||||
Shares redeemed | (11 | ) | (70 | ) | (1 | ) | (5 | ) | (4,662 | ) | (28,658 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | 12 | $ | 78 | — | $ | — | (2,733 | ) | $ | (16,227 | ) | |||||||||||||
A Class | C Class | |||||||||||||||
Large Cap Growth Fund | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold | 78 | $ | 500 | — | $ | — | ||||||||||
Reinvestment of dividends | — | — | — | — | ||||||||||||
Shares redeemed | (6 | ) | (41 | ) | — | — | ||||||||||
Net increase (decrease) in shares outstanding | 72 | $ | 459 | — | $ | — | ||||||||||
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Mid-Cap Value Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | — | $ | 40,486 | — | $ | 12 | — | $ | 7,644 | — | $ | 1 | ||||||||||||||||||||
Reinvestment of dividends | — | 30 | — | — | — | 343 | — | 1 | ||||||||||||||||||||||||
Shares redeemed | — | (3,653 | )* | — | — | * | — | (38,766 | )* | — | (23 | )* | ||||||||||||||||||||
Net increase (decrease) in shares outstanding | — | $ | 36,863 | — | $ | 12 | — | $ | (30,779 | ) | — | $ | (21 | ) | ||||||||||||||||||
AMR Class | A Class | C Class | ||||||||||||||||||||||
Mid-Cap Value Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | — | $ | 6,674 | — | $ | 100 | — | $ | — | |||||||||||||||
Reinvestment of dividends | — | 753 | — | — | — | — | ||||||||||||||||||
Shares redeemed | — | (12,983 | )* | — | (1 | )* | — | — | * | |||||||||||||||
Net increase (decrease) in shares outstanding | — | $ | (5,556 | ) | — | $ | 99 | — | $ | — | ||||||||||||||
* | Net of Redemption Fees |
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American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
Period Ended October 31, 2010
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Balanced Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | 938 | $ | 11,665 | 4 | $ | 46 | 2,259 | $ | 25,989 | 97 | $ | 1,140 | ||||||||||||||||||||
Reinvestment of dividends | 133 | 1,630 | — | 1 | 402 | 4,540 | 27 | 314 | ||||||||||||||||||||||||
Shares redeemed | (944 | ) | (11,665 | ) | — | — | (4,078 | ) | (46,277 | ) | (218 | ) | (2,568 | ) | ||||||||||||||||||
Net increase (decrease) in shares outstanding | 127 | $ | 1,630 | 4 | $ | 47 | (1,417 | ) | $ | (15,748 | ) | (94 | ) | $ | (1,114 | ) | ||||||||||||||||
AMR Class | A Class | C Class | ||||||||||||||||||||||
Balanced Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 3,103 | $ | 36,517 | 4 | $ | 46 | — | $ | 1 | |||||||||||||||
Reinvestment of dividends | 3,684 | 42,865 | — | — | — | — | ||||||||||||||||||
Shares redeemed | (4,724 | ) | (55,318 | ) | — | — | — | — | ||||||||||||||||
Net increase (decrease) in shares outstanding | 2,063 | $ | 24,064 | 4 | $ | 46 | — | $ | 1 | |||||||||||||||
Institutional Class | Y Class | AMR Class | ||||||||||||||||||||||
Large Cap Growth Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 7 | $ | 38 | 4 | $ | 20 | 8,548 | $ | 46,823 | |||||||||||||||
Reinvestment of dividends | — | — | — | — | 63 | 342 | ||||||||||||||||||
Shares redeemed | (12 | ) | (66 | ) | — | — | (6,328 | ) | (34,145 | ) | ||||||||||||||
Net increase (decrease) in shares outstanding | (5 | ) | $ | (28 | ) | 4 | $ | 20 | 2,283 | $ | 13,020 | |||||||||||||
A Class | C Class | |||||||||||||||
Large Cap Growth Fund | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold | 1 | $ | 6 | — | $ | 1 | ||||||||||
Reinvestment of dividends | — | — | — | — | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Net increase (decrease) in shares outstanding | 1 | $ | 6 | — | $ | 1 | ||||||||||
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Mid-Cap Value Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | 59 | $ | 506 | — | $ | 1 | 1,672 | $ | 14,465 | 8 | $ | 64 | ||||||||||||||||||||
Reinvestment of dividends | 2 | 14 | — | — | 20 | 161 | — | — | ||||||||||||||||||||||||
Shares redeemed | (51 | ) | (440 | )* | — | — | * | (963 | ) | (8,239 | )* | — | — | * | ||||||||||||||||||
Net increase (decrease) in shares outstanding | 10 | $ | 80 | — | $ | 1 | 729 | $ | 6,387 | 8 | $ | 64 | ||||||||||||||||||||
AMR Class | A Class | C Class | ||||||||||||||||||||||
Mid-Cap Value Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 3,214 | $ | 27,770 | 2 | $ | 17 | — | $ | 1 | |||||||||||||||
Reinvestment of dividends | 68 | 561 | — | — | — | — | ||||||||||||||||||
Shares redeemed | (3,444 | ) | (29,426 | )* | — | — | * | — | — | * | ||||||||||||||
Net increase (decrease) in shares outstanding | (162 | ) | $ | (1,095 | ) | 2 | $ | 17 | — | $ | 1 | |||||||||||||
* | Net of Redemption Fees |
39
Table of Contents
American Beacon Balanced Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||||||||||||||||||
Six | Six | Six | Year | |||||||||||||||||||||||||||||||||||||
Months | Months | March 01 | Months | Ended | ||||||||||||||||||||||||||||||||||||
Ended | Ended | to | Ended | October | ||||||||||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | April 30, | October | April 30, | 31, | |||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2011 | 31, 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 12.62 | $ | 11.83 | $ | 10.63 | $ | 16.09 | $ | 15.83 | $ | 15.00 | $ | 12.78 | $ | 12.20 | $ | 11.66 | $ | 10.96 | ||||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.16 | 0.35 | 0.43 | 0.47 | 0.50 | 0.39 | 0.20 | 0.16 | 0.12 | 0.25 | ||||||||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 1.05 | 1.10 | 1.25 | (4.70 | ) | 0.90 | 1.54 | 1.00 | 0.57 | 0.98 | 1.04 | |||||||||||||||||||||||||||||
Total income (loss) from investment operations | 1.21 | 1.45 | 1.68 | (4.23 | ) | 1.40 | 1.93 | 1.20 | 0.73 | 1.10 | 1.29 | |||||||||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.17 | ) | (0.66 | ) | (0.48 | ) | (0.44 | ) | (0.42 | ) | (0.38 | ) | (0.29 | ) | (0.15 | ) | (0.12 | ) | (0.59 | ) | ||||||||||||||||||||
Distributions from net realized gains on securities | — | — | — | (0.79 | ) | (0.72 | ) | (0.72 | ) | — | — | — | — | |||||||||||||||||||||||||||
Total distributions | (0.17 | ) | (0.66 | ) | (0.48 | ) | (1.23 | ) | (1.14 | ) | (1.10 | ) | (0.29 | ) | (0.15 | ) | (0.12 | ) | (0.59 | ) | ||||||||||||||||||||
Net asset value, end of period | $ | 13.66 | $ | 12.62 | $ | 11.83 | $ | 10.63 | $ | 16.09 | $ | 15.83 | $ | 13.69 | $ | 12.78 | $ | 12.64 | $ | 11.66 | ||||||||||||||||||||
Total returnA | 9.65 | %B | 12.47 | % | 16.64 | % | (28.23 | )% | 9.31 | % | 13.60 | % | 9.50 | %B | 5.99 | %B | 9.46 | %B | 12.06 | % | ||||||||||||||||||||
Ratios and supplemental data: | �� | |||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 34,878 | $ | 33,405 | $ | 29,808 | $ | 36,557 | $ | 51,399 | $ | 22,587 | $ | 413 | $ | 46 | $ | 89,043 | $ | 84,500 | ||||||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||||||||||
Expenses, net of waivers | 0.58 | % | 0.58 | % | 0.60 | % | 0.56 | % | 0.57 | % | 0.59 | % | 0.68 | % | 0.68 | %C | 0.91 | % | 0.93 | % | ||||||||||||||||||||
Expenses, before waivers | 0.58 | % | 0.58 | % | 0.60 | % | 0.56 | % | 0.57 | % | 0.59 | % | 0.68 | % | 0.68 | %C | 0.91 | % | 0.93 | % | ||||||||||||||||||||
Net investment income, net of waivers | 2.42 | % | 2.67 | % | 3.60 | % | 3.37 | % | 2.91 | % | 2.81 | % | 2.17 | % | 2.54 | %C | 2.09 | % | 2.34 | % | ||||||||||||||||||||
Net investment income, before waivers | 2.42 | % | 2.67 | % | 3.60 | % | 3.37 | % | 2.91 | % | 2.81 | % | 2.17 | % | 2.54 | %C | 2.09 | % | 2.34 | % | ||||||||||||||||||||
Portfolio turnover rate | 24 | %B | 40 | % | 57 | % | 53 | % | 50 | % | 59 | % | 24 | %B | 40 | %D | 24 | %B | 40 | % |
A | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
B | Not annualized. | |
C | Annualized. | |
D | Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010. |
40
Table of Contents
Advisor Class | |||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | ||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||
$ | 9.91 | $ | 15.09 | $ | 14.91 | $ | 14.20 | $ | 12.11 | $ | 11.35 | $ | 9.77 | $ | 14.95 | $ | 14.83 | $ | 14.16 | ||||||||||||||||||||
0.30 | 0.41 | 0.41 | 0.35 | 0.16 | 0.32 | 0.37 | 0.34 | 0.41 | 0.38 | ||||||||||||||||||||||||||||||
1.23 | (4.39 | ) | 0.87 | 1.44 | 0.97 | 1.01 | 1.21 | (4.31 | ) | 0.83 | 1.35 | ||||||||||||||||||||||||||||
1.53 | (3.98 | ) | 1.28 | 1.79 | 1.13 | 1.33 | 1.58 | (3.97 | ) | 1.24 | 1.73 | ||||||||||||||||||||||||||||
�� | |||||||||||||||||||||||||||||||||||||||
(0.48 | ) | (0.41 | ) | (0.38 | ) | (0.36 | ) | (0.13 | ) | (0.57 | ) | — | (0.42 | ) | (0.40 | ) | (0.34 | ) | |||||||||||||||||||||
— | (0.79 | ) | (0.72 | ) | (0.72 | ) | — | — | — | (0.79 | ) | (0.72 | ) | (0.72 | ) | ||||||||||||||||||||||||
(0.48 | ) | (1.20 | ) | (1.10 | ) | (1.08 | ) | (0.13 | ) | (0.57 | ) | (1.21 | ) | (1.12 | ) | (1.06 | ) | ||||||||||||||||||||||
$ | 10.96 | $ | 9.91 | $ | 15.09 | $ | 14.91 | $ | 13.11 | $ | 12.11 | $ | 11.35 | $ | 9.77 | $ | 14.95 | $ | 14.83 | ||||||||||||||||||||
16.29 | % | (28.39 | )% | 9.06 | % | 13.31 | % | 9.32 | %B | 11.96 | % | 16.17 | % | (28.65 | )% | 8.83 | % | 12.94 | % | ||||||||||||||||||||
$ | 94,915 | $ | 105,473 | $ | 202,750 | $ | 111,837 | $ | 5,764 | $ | 6,127 | $ | 6,812 | $ | 7,674 | $ | 9,504 | $1,562 | |||||||||||||||||||||
0.89 | % | 0.82 | % | 0.83 | % | 0.85 | % | 1.08 | % | 1.09 | % | 1.09 | % | 1.07 | % | 1.07 | % | 1.22 | % | ||||||||||||||||||||
0.89 | % | 0.82 | % | 0.83 | % | 0.85 | % | 1.08 | % | 1.09 | % | 1.09 | % | 1.07 | % | 1.07 | % | 1.22 | % | ||||||||||||||||||||
3.26 | % | 3.12 | % | 2.65 | % | 2.55 | % | 1.94 | % | 2.18 | % | 3.06 | % | 2.86 | % | 2.34 | % | 2.18 | % | ||||||||||||||||||||
3.26 | % | 3.12 | % | 2.65 | % | 2.55 | % | 1.94 | % | 2.18 | % | 3.06 | % | 2.86 | % | 2.34 | % | 2.17 | % | ||||||||||||||||||||
57 | % | 53 | % | 50 | % | 59 | % | 24 | %B | 40 | % | 57 | % | 53 | % | 50 | % | 59 | % |
41
Table of Contents
American Beacon Balanced Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
AMR Class | ||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, | A Class | C Class | ||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | Six Months Ended April 30, 2011 | May 17 to October 31, 2010 | Six Months Ended April 30, 2011 | September 01 to October 31, 2010 | |||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 12.02 | $ | 11.31 | $ | 10.19 | $ | 15.49 | $ | 15.27 | $ | 14.49 | $ | 11.94 | $ | 11.50 | $ | 11.92 | $ | 11.32 | ||||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.16 | 0.35 | 0.39 | 0.49 | 0.50 | 0.45 | 0.25 | 0.02 | 0.09 | 0.01 | ||||||||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 1.01 | 1.07 | 1.24 | (4.52 | ) | 0.89 | 1.46 | 0.86 | 0.43 | 0.96 | 0.59 | |||||||||||||||||||||||||||||
Total income (loss) from investment operations | 1.17 | 1.42 | 1.63 | (4.03 | ) | 1.39 | 1.91 | 1.11 | 0.45 | 1.05 | 0.60 | |||||||||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.19 | ) | (0.71 | ) | (0.51 | ) | (0.48 | ) | (0.45 | ) | (0.41 | ) | (0.29 | ) | (0.01 | ) | (0.15 | ) | 0.00 | |||||||||||||||||||||
Distributions from net realized gains on securities | — | — | — | (0.79 | ) | (0.72 | ) | (0.72 | ) | — | — | — | — | |||||||||||||||||||||||||||
Total distributions | (0.19 | ) | (0.71 | ) | (0.51 | ) | (1.27 | ) | (1.17 | ) | (1.13 | ) | (0.29 | ) | (0.01 | ) | (0.15 | ) | 0.00 | |||||||||||||||||||||
Net asset value, end of period | $ | 13.00 | $ | 12.02 | $ | 11.31 | $ | 10.19 | $ | 15.49 | $ | 15.27 | $ | 12.76 | $ | 11.94 | $ | 12.82 | $ | 11.92 | ||||||||||||||||||||
Total return A | 9.74 | %B | 12.84 | % | 16.95 | % | (28.08 | )% | 9.59 | % | 13.98 | % | 9.39 | %B | 3.90 | %B | 8.98 | %B | 5.33 | %B | ||||||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 764,930 | $ | 748,422 | $ | 681,197 | $ | 604,209 | $ | 898,584 | $ | 817,333 | $ | 336 | $ | 47 | $ | 196 | $ | 1 | ||||||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||||||||||
Expenses, net of waivers | 0.33 | % | 0.33 | % | 0.35 | % | 0.31 | % | 0.31 | % | 0.33 | % | 1.07 | % | 1.08 | %C | 1.83 | % | 1.86 | %C | ||||||||||||||||||||
Expenses, before waivers | 0.33 | % | 0.33 | % | 0.35 | % | 0.31 | % | 0.31 | % | 0.33 | % | 1.07 | % | 1.08 | %C | 1.83 | % | 2.14 | %C | ||||||||||||||||||||
Net investment income, net of waivers | 2.68 | % | 2.92 | % | 3.75 | % | 3.62 | % | 3.21 | % | 3.08 | % | 1.76 | % | 1.51 | %C | 0.98 | % | 0.48 | %C | ||||||||||||||||||||
Net investment income, before waivers | 2.68 | % | 2.92 | % | 3.75 | % | 3.62 | % | 3.21 | % | 3.08 | % | 1.76 | % | 1.51 | %C | 0.98 | % | 0.20 | %C | ||||||||||||||||||||
Portfolio turnover rate | 24 | %B | 40 | % | 57 | % | 53 | % | 50 | % | 59 | % | 24 | %B | 40 | %D | 24 | %B | 40 | %D |
A | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
B | Not annualized. | |
C | Annualized. | |
D | Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010. |
42
Table of Contents
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43
Table of Contents
American Beacon Large Cap Growth Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | ||||||||||||||||||||||||
Six | ||||||||||||||||||||||||
Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
April 30, | Year Ended October 31, | |||||||||||||||||||||||
2011 | 2010 | 2009A | 2008 | 2007 | 2006B | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 5.84 | $ | 4.97 | $ | 4.49 | $ | 7.67 | $ | 6.89 | $ | 6.18 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.01 | 0.00 | 0.03 | 0.05 | 0.04 | 0.04 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 1.05 | 0.88 | 0.50 | (2.97 | ) | 0.77 | 0.70 | |||||||||||||||||
Total income (loss) from investment operations | 1.06 | 0.88 | 0.53 | (2.92 | ) | 0.81 | 0.74 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Dividends from net investment income | (0.01 | ) | (0.01 | ) | (0.05 | ) | (0.04 | ) | (0.03 | ) | (0.03 | ) | ||||||||||||
Distributions from net realized gains on securities | — | — | — | (0.22 | ) | — | — | |||||||||||||||||
Total distributions | (0.01 | ) | (0.01 | ) | (0.05 | ) | (0.26 | ) | (0.03 | ) | (0.03 | ) | ||||||||||||
Net asset value, end of period | $ | 6.89 | $ | 5.84 | $ | 4.97 | $ | 4.49 | $ | 7.67 | $ | 6.89 | ||||||||||||
Total return C | 18.12 | %D | 17.70 | % | 12.09 | % | (39.35 | )% | 11.84 | % | 12.04 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 231 | $ | 125 | $ | 130 | $ | 83 | $ | 119 | $ | 110 | ||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||
Expenses, net of waivers | 0.95 | % | 0.94 | % | 0.93 | % | 0.89 | % | 0.90 | % | 0.90 | % | ||||||||||||
Expenses, before waivers | 0.95 | % | 0.94 | % | 0.94 | % | 0.95 | % | 1.06 | % | 0.99 | % | ||||||||||||
Net investment income (loss), net of waivers | (0.09 | )% | (0.02 | )% | 0.38 | % | 0.74 | % | 0.58 | % | 0.56 | % | ||||||||||||
Net investment income (loss), before waivers | (0.09 | )% | (0.02 | )% | 0.36 | % | 0.68 | % | 0.42 | % | 0.48 | % | ||||||||||||
Portfolio turnover rate | 33 | %D | 92 | % | 147 | % | 112 | % | 128 | % | 181 | % |
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 | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
D | Not annualized. | |
E | Annualized. | |
F | Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010. |
44
Table of Contents
Y Class | AMR Class | A Class | C Class | |||||||||||||||||||||||||||||||||||||||||||
Six | Six | Six | Six | |||||||||||||||||||||||||||||||||||||||||||
Months | March | Months | Months | May | Months | September | ||||||||||||||||||||||||||||||||||||||||
Ended | 01 to | Ended | Ended | 17 to | Ended | 01 to | ||||||||||||||||||||||||||||||||||||||||
April 30, | October 31, | April 30, | Year Ended October 31, | April 30, | October 31, | April 30, | October 31, | |||||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2009A | 2008 | 2007 | 2006B | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||
$ | 5.83 | $ | 5.41 | $ | 5.88 | $ | 5.00 | $ | 4.52 | $ | 7.72 | $ | 6.95 | $ | 6.21 | $ | 5.83 | $ | 5.40 | $ | 5.83 | $ | 5.17 | |||||||||||||||||||||||
(0.01 | ) | 0.00 | 0.01 | 0.01 | 0.04 | 0.07 | 0.06 | 0.05 | (0.01 | ) | (0.01 | ) | (0.04 | ) | (0.02 | ) | ||||||||||||||||||||||||||||||
1.07 | 0.42 | 1.06 | 0.89 | 0.51 | (2.99 | ) | 0.77 | 0.73 | 1.04 | 0.44 | 1.06 | 0.68 | ||||||||||||||||||||||||||||||||||
1.06 | 0.42 | 1.07 | 0.90 | 0.55 | (2.92 | ) | 0.83 | 0.78 | 1.03 | 0.43 | 1.02 | 0.66 | ||||||||||||||||||||||||||||||||||
(0.01 | ) | — | (0.01 | ) | (0.02 | ) | (0.07 | ) | (0.06 | ) | (0.06 | ) | (0.04 | ) | — | — | — | — | ||||||||||||||||||||||||||||
— | — | — | — | — | (0.22 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||||||||
(0.01 | ) | — | (0.01 | ) | (0.02 | ) | (0.07 | ) | (0.28 | ) | (0.06 | ) | (0.04 | ) | — | — | — | — | ||||||||||||||||||||||||||||
$ | 6.88 | $ | 5.83 | $ | 6.94 | $ | 5.88 | $ | 5.00 | $ | 4.52 | $ | 7.72 | $ | 6.95 | $ | 6.86 | $ | 5.83 | $ | 6.85 | $ | 5.83 | |||||||||||||||||||||||
18.14 | %D | 7.76 | %D | 18.25 | %D | 18.11 | % | 12.46 | % | (39.17 | )% | 12.07 | % | 12.52 | % | 17.67 | %D | 7.96 | %D | 17.53 | %D | 12.77 | %D | |||||||||||||||||||||||
$ | 26 | $ | 22 | $ | 95,574 | $ | 96,978 | $ | 71,154 | $ | 56,976 | $ | 101,698 | $ | 82,042 | $ | 501 | $ | 7 | $ | 2 | $ | 1 | |||||||||||||||||||||||
1.05 | % | 1.06 | %E | 0.70 | % | 0.69 | % | 0.63 | % | 0.59 | % | 0.60 | % | 0.59 | % | 1.45 | % | 1.49 | %E | 2.06 | % | 2.20 | %E | |||||||||||||||||||||||
14.83 | % | 1.06 | %E | 0.70 | % | 0.69 | % | 0.63 | % | 0.59 | % | 0.60 | % | 0.59 | % | 2.34 | % | 1.49 | %E | 271.68 | % | 3.14 | %E | |||||||||||||||||||||||
(0.15 | )% | (0.33 | )%E | 0.20 | % | 0.19 | % | 0.86 | % | 1.05 | % | 0.85 | % | 0.88 | % | (0.75 | )% | (0.90 | )%E | (1.14 | )% | (1.68 | )%E | |||||||||||||||||||||||
(13.94 | )% | (0.33 | )%E | 0.20 | % | 0.19 | % | 0.86 | % | 1.05 | % | 0.85 | % | 0.88 | % | (1.64 | )% | (0.90 | )%E | (270.75 | )% | (2.62 | )%E | |||||||||||||||||||||||
33 | %D | 92 | %F | 33 | %D | 92 | % | 147 | % | 112 | % | 128 | % | 181 | % | 33 | %D | 92 | %F | 33 | %D | 92 | %F |
45
Table of Contents
American Beacon Funds Mid-Cap Value Fund
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | |||||||||||||||||||||||||||||||
Six | Six | |||||||||||||||||||||||||||||||
Months | November | Months | March | |||||||||||||||||||||||||||||
Ended | 30 to | Ended | 01 to | |||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | October | April 30, | October | ||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 31, 2006 | 2011 | 31, 2010 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 9.27 | $ | 7.57 | $ | 5.94 | $ | 11.01 | $ | 10.81 | $ | 12.09 | $ | 9.27 | $ | 8.48 | ||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.02 | 0.08 | 0.10 | 0.16 | 0.12 | 0.21 | 0.06 | 0.06 | ||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 1.74 | 1.67 | 1.65 | (4.31 | ) | 0.41 | 1.25 | 1.70 | 0.73 | |||||||||||||||||||||||
Total income (loss) from investment operations | 1.76 | 1.75 | 1.75 | (4.15 | ) | 0.53 | 1.46 | 1.76 | 0.79 | |||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.11 | ) | (0.05 | ) | (0.12 | ) | (0.16 | ) | (0.07 | ) | (0.16 | ) | (0.11 | ) | — | |||||||||||||||||
Distributions from net realized gains on securities | — | — | — | (0.76 | ) | (0.26 | ) | (2.58 | ) | — | — | |||||||||||||||||||||
Total distributions | (0.11 | ) | (0.05 | ) | (0.12 | ) | (0.92 | ) | (0.33 | ) | (2.74 | ) | (0.11 | ) | — | |||||||||||||||||
Redemption fees added to beneficial interestsA | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | 0.00 | ||||||||||||||||||||||||
Net asset value, end of period | $ | 10.92 | $ | 9.27 | $ | 7.57 | $ | 5.94 | $ | 11.01 | $ | 10.81 | $ | 10.92 | $ | 9.27 | ||||||||||||||||
Total return B,C | 19.05 | %D | 23.19 | % | 30.24 | % | (40.86 | )% | 4.97 | % | 15.19 | %D | 19.06 | %D | 9.32 | %D | ||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 43,743 | $ | 2,778 | $ | 2,197 | $ | 2,256 | $ | 6,047 | $ | 3,396 | $ | 14 | $ | 1 | ||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||
Expenses, net of waivers | 0.98 | % | 0.98 | % | 0.98 | % | 0.98 | % | 0.92 | % | 1.19 | %E | 1.01 | % | 1.01 | %E | ||||||||||||||||
Expenses, before waivers | 1.07 | % | 1.06 | % | 1.13 | % | 1.16 | % | 1.09 | % | 1.19 | %E | 79.75 | % | 1.05 | %E | ||||||||||||||||
Net investment income, net of waivers | 0.83 | % | 0.99 | % | 1.29 | % | 1.51 | % | 1.22 | % | 1.11 | %E | 0.80 | % | 0.97 | %E | ||||||||||||||||
Net investment income (loss), before waivers | 0.74 | % | 0.90 | % | 1.14 | % | 1.33 | % | 1.05 | % | 1.11 | %E | (77.94 | )% | 0.93 | %E | ||||||||||||||||
Portfolio turnover rate | 19 | %D | 40 | % | 42 | % | 28 | % | 35 | % | 42 | %F | 19 | %D | 40 | %G |
A | Amounts represent less than $0.01 per share. | |
B | 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. | |
C | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
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 October 31, 2010. | |
H | Portfolio turnover rate is for the period from November 1, 2006 through October 31, 2007. | |
I | 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. |
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Table of Contents
Investor Class | Advisor Class | |||||||||||||||||||||||||||||||||||||||||
Six | Six | |||||||||||||||||||||||||||||||||||||||||
Months | February | Months | June | |||||||||||||||||||||||||||||||||||||||
Ended | 28 to | Ended | 29 to | |||||||||||||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | October | April 30, | Year Ended October 31, | October | |||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 31, 2006 | 2011 | 2010 | 2009 | 2008 | 31, 2007 | ||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||
$ | 9.20 | $ | 7.54 | $ | 5.92 | $ | 10.96 | $ | 10.80 | $ | 9.80 | $ | 9.12 | $ | 7.49 | $ | 5.87 | $ | 10.94 | $ | 11.73 | |||||||||||||||||||||
(0.10 | ) | 0.06 | 0.07 | 0.14 | 0.10 | 0.01 | 0.03 | 0.07 | 0.15 | 0.10 | 0.01 | |||||||||||||||||||||||||||||||
1.90 | 1.65 | 1.66 | (4.31 | ) | 0.40 | 0.99 | 1.68 | 1.61 | 1.60 | (4.27 | ) | (0.80 | ) | |||||||||||||||||||||||||||||
1.80 | 1.71 | 1.73 | (4.17 | ) | 0.50 | 1.00 | 1.71 | 1.68 | 1.75 | (4.17 | ) | (0.79 | ) | |||||||||||||||||||||||||||||
(0.09 | ) | (0.05 | ) | (0.11 | ) | (0.11 | ) | (0.08 | ) | — | (0.08 | ) | (0.05 | ) | (0.13 | ) | (0.14 | ) | — | |||||||||||||||||||||||
— | — | — | (0.76 | ) | (0.26 | ) | — | — | — | — | (0.76 | ) | — | |||||||||||||||||||||||||||||
(0.09 | ) | (0.05 | ) | (0.11 | ) | (0.87 | ) | (0.34 | ) | — | (0.08 | ) | (0.05 | ) | (0.13 | ) | (0.90 | ) | — | |||||||||||||||||||||||
— | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||||||||
$ | 10.91 | $ | 9.20 | $ | 7.54 | $ | 5.92 | $ | 10.96 | $ | 10.80 | $ | 10.75 | $ | 9.12 | $ | 7.49 | $ | 5.87 | $ | 10.94 | |||||||||||||||||||||
19.65 | %D | 22.93 | % | 29.93 | % | (41.04 | )% | 4.68 | % | 10.20 | %D | 18.80 | %D | 22.37 | % | 30.64 | % | (41.28 | )% | (6.73 | )%D | |||||||||||||||||||||
$ | 7,405 | $ | 35,223 | $ | 23,369 | $ | 16,550 | $ | 43,158 | $ | 27,240 | $ | 69 | $ | 78 | $ | 7 | $ | 1 | $ | 1 | |||||||||||||||||||||
1.22 | % | 1.23 | % | 1.23 | % | 1.23 | % | 1.23 | % | 1.49 | %E | 1.49 | % | 1.44 | % | 1.50 | % | 1.50 | % | 1.50 | %E | |||||||||||||||||||||
1.27 | % | 1.27 | % | 1.34 | % | 1.32 | % | 1.26 | % | 1.61 | %E | 2.08 | % | 1.55 | % | 1.58 | % | 2.04 | % | 1.80 | %E | |||||||||||||||||||||
1.61 | % | 0.75 | % | 0.98 | % | 1.27 | % | 0.93 | % | 0.57 | %E | 0.69 | % | 0.47 | % | 0.22 | % | 1.02 | % | 0.32 | %E | |||||||||||||||||||||
1.56 | % | 0.70 | % | 0.87 | % | 1.18 | % | 0.90 | % | 0.44 | %E | 0.10 | % | 0.36 | % | 0.14 | % | 0.48 | % | 0.02 | %E | |||||||||||||||||||||
19 | %D | 40 | % | 42 | % | 28 | % | 35 | % | 42 | %F | 19 | %D | 40 | % | 42 | % | 28 | % | 35 | %H |
47
Table of Contents
American Beacon Funds Mid-Cap Value Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
AMR Class (formerly Institutional Class prior to December 1, 2005)I | A Class | |||||||||||||||||||||||||||||||
Six | Six | |||||||||||||||||||||||||||||||
Months | Months | May | ||||||||||||||||||||||||||||||
Ended | Ended | 17 to | ||||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | April 30, | October | |||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2011 | 31, 2010 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 9.27 | $ | 7.59 | $ | 5.97 | $ | 11.07 | $ | 10.87 | $ | 11.72 | $ | 9.18 | $ | 9.00 | ||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.08 | 0.10 | 0.07 | 0.18 | 0.18 | 0.12 | 0.07 | 0.01 | ||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 1.69 | 1.66 | 1.70 | (4.35 | ) | 0.36 | 1.75 | 1.65 | 0.17 | |||||||||||||||||||||||
Total income (loss) from investment operations | 1.77 | 1.76 | 1.77 | (4.17 | ) | 0.54 | 1.87 | 1.72 | 0.18 | |||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.12 | ) | (0.08 | ) | (0.15 | ) | (0.17 | ) | (0.08 | ) | (0.14 | ) | (0.08 | ) | — | |||||||||||||||||
Distributions from net realized gains on securities | — | — | — | (0.76 | ) | (0.26 | ) | (2.58 | ) | — | — | |||||||||||||||||||||
Total distributions | (0.12 | ) | (0.08 | ) | (0.15 | ) | (0.93 | ) | (0.34 | ) | (2.72 | ) | (0.08 | ) | — | |||||||||||||||||
Redemption fees added to beneficial interestsA | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | 0.00 | ||||||||||||||||||||||||
Net asset value, end of period | $ | 10.92 | $ | 9.27 | $ | 7.59 | $ | 5.97 | $ | 11.07 | $ | 10.87 | $ | 10.82 | $ | 9.18 | ||||||||||||||||
Total return B,C | 19.19 | %D | 23.28 | % | 30.56 | % | (40.82 | )% | 5.09 | % | 19.16 | % | 18.77 | %D | 2.00 | %D | ||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 69,199 | $ | 64,012 | $ | 53,604 | $ | 34,253 | $ | 78,794 | $ | 66,290 | $ | 126 | $ | 18 | ||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||
Expenses, net of waivers | 0.78 | % | 0.77 | % | 0.83 | % | 0.82 | % | 0.75 | % | 0.97 | % | 1.45 | % | 1.48 | %E | ||||||||||||||||
Expenses, before waivers | 0.78 | % | 0.77 | % | 0.82 | % | 0.82 | % | 0.75 | % | 0.92 | % | 6.41 | % | 1.51 | %E | ||||||||||||||||
Net investment income (loss), net of waivers | 1.39 | % | 1.19 | % | 1.38 | % | 1.68 | % | 1.41 | % | 1.38 | % | 0.51 | % | 0.47 | %E | ||||||||||||||||
Net investment income (loss), before waivers | 1.39 | % | 1.19 | % | 1.38 | % | 1.68 | % | 1.40 | % | 1.42 | % | (4.45 | )% | 0.44 | %E | ||||||||||||||||
Portfolio turnover rate | 19 | %D | 40 | % | 42 | % | 28 | % | 35 | % | 42 | % | 19 | %D | 40 | %G |
A | Amounts represent less than $0.01 per share. | |
B | 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. | |
C | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
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 October 31, 2010. | |
H | Portfolio turnover rate is for the period from November 1, 2006 through October 31, 2007. | |
I | 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. |
48
Table of Contents
C Class | ||||||||
Six Months | September | |||||||
Ended | 01 to | |||||||
April 30, | October | |||||||
2011 | 31, 2010 | |||||||
(unaudited) | ||||||||
$ | 9.18 | $ | 8.30 | |||||
0.00 | (0.01 | ) | ||||||
1.68 | 0.89 | |||||||
1.68 | 0.88 | |||||||
(0.05 | ) | — | ||||||
— | — | |||||||
(0.05 | ) | — | ||||||
— | 0.00 | |||||||
$ | 10.81 | $ | 9.18 | |||||
18.22 | %D | 10.60 | %D | |||||
$ | 1 | $ | 1 | |||||
2.24 | % | 2.24 | %E | |||||
274.79 | % | 3.20 | %E | |||||
(0.04 | )% | (0.36 | )%E | |||||
(272.59 | )% | (1.32 | )%E | |||||
19 | %D | 40 | %G | |||||
· |
49
Table of Contents
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Delivery of Documents
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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:
7 | 8 | |
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 twenty 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 or Summary 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.
Table of Contents
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HIGH YIELD BOND FUND RETIREMENT INCOME AND APPRECIATION FUND |
INTERMEDIATE BOND FUND SHORT-TERM BOND FUND |
Semi-Annual Report |
April 30, 2011 |
Table of Contents
About American Beacon Advisors Contents
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.
1 | ||||
2-12 | ||||
American Beacon Schedules of Investments | ||||
15 | ||||
21 | ||||
29 | ||||
37 | ||||
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 each 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 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 grade 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.
Table of Contents
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Fellow Shareholders,
Over the past six months, the bond markets have generally moved forward, despite concerns for the pace of the U.S. and global recoveries, reoccurrences of sovereign debt worries, geopolitical unrest, inflationary fears and the potential impact of Japan’s recent earthquake. The markets have trudged on despite these challenges, thanks to the increasing reports of strength in corporate earnings and the persistence of economic recovery in the U.S.
The performance of our credit-exposed funds reflects this strength as well. It also reflects the American Beacon investment philosophy: that portfolios managed with a longer-term perspective tend to be better positioned for riding out the inevitable waves of economic and geopolitical upheaval.
For the six-month period ended April 30, 2011:
>>American Beacon High Yield Bond Fund (Y Class) returned 6.83%
>>American Beacon Retirement Income and Appreciation Fund (Y Class) rose 2.24%
>>American Beacon Intermediate Bond Fund (Y Class) gained 0.14%
>>American Beacon Short-Term Bond Fund (Y Class) increased 0.18%
>>American Beacon Retirement Income and Appreciation Fund (Y Class) rose 2.24%
>>American Beacon Intermediate Bond Fund (Y Class) gained 0.14%
>>American Beacon Short-Term Bond Fund (Y Class) increased 0.18%
While day-to-day volatility continues to influence the world’s equity and credit markets, American Beacon remains focused on seeking opportunities and meeting market challenges to deliver the type of consistency in performance and service our shareholders value.
Our process is summarized as: Oversight 360. It’s an ongoing commitment to cast a watchful and analytical eye over all the factors that influence our fellow shareholders’ investments.
Thank you for your continued investment in the American Beacon Funds. To obtain further details about the growing number of investment opportunities now available within the American Beacon Funds family or to access your account information, please visit our website at www.americanbeaconfunds.com.
Best Regards, | ||||
![]() | ||||
Gene L. Needles, Jr. | ||||
President American Beacon Funds |
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Table of Contents
Domestic Bond Market Overview
April 30, 2011 (Unaudited)
April 30, 2011 (Unaudited)
The six-month period began as the effect of the European debt crisis on the international markets started to ebb. Concurrently, the U.S. was experiencing a pause in its progress towards economic recovery. Given this backdrop, the U.S. Federal Reserve Bank (the “Fed”) announced a second round of quantitative easing to further stimulate the economy and give investors renewed confidence in the budding recovery. While the markets were encouraged by the news, the underlying economy was still on soft footing as the housing sector had yet to rebound and employment growth remained moderate.
In the upcoming period, investors are expected to focus intently on every clue regarding the strength of the U.S. economy, given that the Fed’s stimulus measures are set to expire. If the recovery momentum holds, interest rates are likely to remain elevated. However, if the consumer and housing sectors remain too weak to support the ongoing recovery, another decline in interest rates may follow.
Performance Recap
During the six-month period ended April 30, 2011, the short end of the yield curve remained near the 0% mark, due to a low Federal Funds Rate. Interest rates at the longer end of the curve rose during the period as markets recovered from the initial phase of the European debt crisis and as the Fed announced a second round of quantitative easing.
With respect to U.S. Treasury securities, the yield on the 10-year Treasury note rose from 2.60% at the beginning of the period to 3.29% by the end of the period. This resulted in a -3.87% total return. Meanwhile, the 2-year Treasury note yield rose from 0.34% to 0.60% and returned 0.12%. This rise in interest rates led the shorter-duration Merrill 1-3 Year Index to outperform the longer-duration Barclays Aggregate Index. [The Barclays Aggregate Index nudged forward producing a 0.02% total return, while the Merrill Lynch 1-3 Year Government/Credit Index produced a 0.34% total return.]
As a whole, the U.S. Treasury sector posted a -1.52% total return during the period according to the Barclays Index. Agency mortgage-backed securities, with their shorter duration and higher yields, posted a 0.95% total return. The credit sector, helped by an improvement in corporate fundamentals and strong investor demand, produced a 0.56% total return. Financials contributed heavily to this gain with a 2.07% return. The credit sector further benefited from positive performance from utilities at 0.33% and industrials at 0.10%. Lower-quality issuers continued to outperform the higher-quality counterparts as fundamentals improved and investor demand for yield remained strong.
Overall, returns reflect strong performance from the various credit sectors. But this was offset by the impact of rising interest rates during the period.
2
Table of Contents
High Yield Bond Market Overview
April, 30, 2011 (Unaudited)
April, 30, 2011 (Unaudited)
For the six months ended April 30, 2011, the JPMorgan Global High Yield Bond Index generated a return of 6.56%.
For both the fourth quarter of 2010 and the first quarter of 2011, earnings for the majority of high yield issuers experienced healthy growth. As a result, the corporate default rate declined and the near-to-intermediate outlook anticipates that it may remain at historically low levels.
Given the potential for the favorable fundamental backdrop to persist along with the low overall interest rate environment, investors continued to add money to the high yield asset class. As a result, issuers were able to tap the market to refinance debt, extend maturities, and in many cases lower their interest expenses.
The combination of favorable fundamental and technical factors also enabled the market to overcome a brief sell-off in November. Contributing to that sell-off were renewed concerns about the European sovereign debt problems, the uprisings in the Middle East and Northern Africa, and the devastation of the Japanese earthquake.
As evidence has grown that the U.S. economic recovery was becoming self-sustaining, the yield on the 10-year Treasury bond increased during the period. However, strong demand for high yield bonds drove the index yield down to 6.83%, its lowest absolute yield ever. As a result of these movements, the spread of the high yield index over U.S. Treasuries tightened by more than 100 basis points (1.00%) to 5.2%.
3
Table of Contents
Short Term Bond Market Overview
April 30, 2011 (Unaudited)
April 30, 2011 (Unaudited)
For the six months ended April 30, 2011, the Fund’s benchmarks, the Bank of America Merrill Lynch 1-3 Year U.S. Government/Corporate Index (“Index”) and the Lipper Short Investment Grade Bond Funds Index (“Lipper Index”) produced returns of 0.34% and 0.73%.
Gross of expenses, the Fund outperformed the Index for the period, but expenses brought the return below that of the Index.
During the period, the Fund was overweight in the Corporate and Asset-Backed sectors, which outperformed U.S. Treasuries and Agencies as the credit markets continued to recover along with the U.S. economy.
Among the sectors, the largest Corporate overweight position was given to the Financial sector, which performed very well. Industrials had the next highest allocation and returns. The Asset-Backed holdings were comprised of credit card, auto and equipment receivables and did not include any residential mortgages. The Fund generally maintains overweight positions in the Corporate and Asset-Backed sectors to generate incremental yield-to-maturity return compared to the Index.
Also during the period, the Fund’s duration was shorter than that of the benchmark, which helped preserve capital as interest rates rose and prices declined. Though the Fund’s managers do not expect the Federal Reserve Bank (“Fed”) to raise interest rates soon, further portfolio moves are anticipated that will help protect the Fund from what seems like the inevitable rise that typically accompanies an economic recovery. For this reason, over the upcoming quarters, their intention is to keep the Fund’s duration within approximately 20% of the Index’s duration until the anticipated Fed rate hikes become more imminent.
Relative to the Lipper Index, the Fund’s other benchmark, the Fund’s underperformance during the past six months was primarily attributable to the high-yield exposure in the Lipper peer group. The high yield sector continued to perform extraordinarily well as the credit markets improved, and the Fund’s lack of high-yield exposure significantly accounted for its relative underperformance.
In the meantime, we continue to look for opportunities in this low interest rate environment while taking steps to protect the Fund from an eventual rise in rates. We will also maintain our conservative approach toward credit risk as we seek opportunities for long-term, risk-adjusted outperformance—versus our benchmarks.
4
Table of Contents
Performance Overview
American Beacon High Yield Bond FundSM
April 30, 2011 (Unaudited)
American Beacon High Yield Bond FundSM
April 30, 2011 (Unaudited)
The Institutional Class of the High Yield Bond Fund returned 6.81% for the six months ended April 30, 2011. The Fund outperformed the JPMorgan Global High-Yield Index (“Index”) return of 6.56% and the Lipper High Current Yield Funds Index return of 6.64% for the period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/11 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,8) | 6.81 | % | 13.28 | % | 7.04 | % | 8.07 | % | ||||||||
Y Class (1,2,8) | 6.83 | % | 13.47 | % | 7.08 | % | 8.09 | % | ||||||||
Investor Class(1,3,8) | 6.65 | % | 13.09 | % | 6.78 | % | 7.81 | % | ||||||||
A Class with sales charge (1,5,8) | 1.49 | % | 7.88 | % | 5.77 | % | 7.30 | % | ||||||||
A Class without sales charge (1,5,8) | 6.52 | % | 13.21 | % | 6.80 | % | 7.82 | % | ||||||||
C Class with sales charge (1,6,8) | 4.34 | % | 11.36 | % | 6.64 | % | 7.74 | % | ||||||||
C Class without sales charge (1,6,8) | 5.34 | % | 12.36 | % | 6.64 | % | 7.74 | % | ||||||||
AMR Class (1,4,8) | 6.94 | % | 13.69 | % | 7.27 | % | 8.18 | % | ||||||||
JPMorgan GlobaL High-Yield Index(7) | 6.56 | % | 13.51 | % | 9.38 | % | 9.42 | % | ||||||||
Lipper High Current Yield Funds Index(7) | 6.64 | % | 13.47 | % | 7.08 | % | 7.03 | % |
* | 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 five-year and ten-year period represents the total returns achieved by the Institutional Class from 4/30/01 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 4/30/01. A portion of the fees charged to the Y Class of the Fund was waived in 2011. Performance prior to waiving fees was lower than the actual returns shown. | |
3. | Fund performance for the ten-year period represents the total returns achieved by the Institutional Class from 4/30/01 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 4/30/01. | |
4. | Fund performance for the five-year and ten-year periods represents the total returns achieved by the Institutional Class from 4/30/01 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 4/30/01. | |
5. | Fund performance for the one-year, five-year, and ten-year periods represent the returns achieved by the Institutional Class from 4/30/01 through 3/1/02, and the returns of the Investor Class from 3/1/02 up to 5/17/10, the inception date of the A Class, and the returns of the A Class since its inception. Expenses of the A Class are higher than those of the Institutional and Investor Classes. As a result, total returns shown may be higher than they would have been had the A Class been in existence since 4/30/01. A portion of the fees charged to the A Class of the Fund was waived since 2010. Performance prior to waiving fees was lower than the actual returns shown since 2010. The maximum sales charge for A Class is 4.75%. | |
6. | Fund performance for the one-year, five-year, and ten-year periods represent the returns achieved by the Institutional Class from 4/30/01 through 3/1/02, and the returns of the Investor Class from 3/1/02 up to 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the C Class are higher than those of the Institutional and Investor Classes. As a result, total returns shown may be higher than they would have been had the C Class been in existence since 4/30/01. A portion of the fees charged to the C Class of the Fund was waived since 2010. Performance prior to waiving fees was lower than the actual returns shown since 2010. The maximum contingent deferred sales charge for C Class is 1.00% for shares redeemed within one year of the date of purchase. | |
7. | 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. | |
8. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, A, C, and AMR Class shares was 0.80%, 0.83%, 1.05%, 1.31%, 2.06%, and 0.55%, 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 over the six-month period from an industry perspective due to issue selection and allocation, and from a credit quality perspective due to allocation, as issue selection detracted from relative performance for the period.
From an industry standpoint, issue selections in the Health, Insurance-Property & Casualty, and Other Industrial industries contributed most significantly to the Fund’s
5
Table of Contents
Performance Overview
American Beacon High Yield Bond FundSM
April 30, 2011 (Unaudited)
American Beacon High Yield Bond FundSM
April 30, 2011 (Unaudited)
outperformance, despite losing value through selections in the Energy-Services industry.
From an industry allocation perspective, the Fund benefited from overweighting the Gaming industry (up 8.8%) and the Retail-Drug industry (up 11.4%). Underweighting the Consumer Finance industry (up 10.2%) and overweighting the Auto Manufacturing industry (down 0.1%) detracted from relative performance.
From a credit quality perspective, issue selections in the CCC-rated credit group detracted from performance.
From a credit quality allocation perspective, overweighting the CCC-rated credit group (up 9.4%) and underweighting the BB-rated credit group (up 4.2%) led to the Fund’s relative outperformance, but the Fund lost value through overweighting the A-rated group (down 1.5%).
The sub-advisors’ “bottom-up”, research intensive investment process, which focuses on companies with strong cash flow and fundamental credit strength, remains in place.
Top Ten Holdings
% of | ||||
Net Assets | ||||
RITE AID Corp., 9.750%, Due 6/12/2016 | 1.0 | % | ||
CIT Group, Inc., 7.000%, Due 5/1/2017 | 1.0 | % | ||
HCA, Inc., 9.625%, Due 11/15/2016 | 0.9 | % | ||
Visant Corp., 10.000%, Due 10/1/2017 | 0.9 | % | ||
Enterprise Products Operating LLC, 7.034%, Due 1/15/2068 | 0.9 | % | ||
MacDermid, Inc., 9.500%, Due 4/15/2017 | 0.8 | % | ||
Energy XXI Gulf Coast, Inc., 9.250%, Due 12/15/2017 | 0.8 | % | ||
Caesars Entertainment Operating Co, Inc., 11.250%, Due 6/1/2017 | 0.8 | % | ||
DISH DBS Corp., 7.125%, Due 2/1/2016 | 0.8 | % | ||
Petco Animal Supplies, Inc., 9.250%, Due 12/1/2018 | 0.7 | % |
Sector Allocation
% of | ||||
Fixed Income | ||||
Corporate | 99.1 | % | ||
Convertibles | 0.9 | % |
Sector Allocation
% of | ||||
Equities | ||||
Financials | 39.0 | % | ||
Telecommunication Services | 30.2 | % | ||
Rights/Warrants | 16.5 | % | ||
Consumer Discretionary | 14.3 | % |
6
Table of Contents
Performance Overview
American Beacon Retirement Income and Appreciation FundSM
April 30, 2011 (Unaudited)
American Beacon Retirement Income and Appreciation FundSM
April 30, 2011 (Unaudited)
The Y Class of the Retirement Income and Appreciation Fund returned 2.24% for the six months ended April 30, 2011. Its benchmark, a blend of 75% Barclays Capital Aggregate and 25% BofA Merrill Lynch All U.S. Convertibles Index, returned 2.82%. The Fund’s peer group, the Lipper Intermediate Investment Grade Index, returned 0.86% for the same period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/11 | ||||||||||||||||
Since | ||||||||||||||||
Incep. | ||||||||||||||||
6 Months* | 1 Year | 5 Years | (7/1/03) | |||||||||||||
Y Class (1,2,7) | 2.24 | % | 7.58 | % | 6.01 | % | 5.02 | % | ||||||||
Investor Class(1,7) | 2.12 | % | 7.35 | % | 5.98 | % | 4.99 | % | ||||||||
A Class with sales charge (1,3,7) | -2.82 | % | 2.20 | % | 4.95 | % | 4.34 | % | ||||||||
A Class without sales charge (1,3,7) | 2.04 | % | 7.30 | % | 5.97 | % | 4.99 | % | ||||||||
C Class with sales charge (1,4,7) | 0.78 | % | 5.81 | % | 5.87 | % | 4.93 | % | ||||||||
C Class without sales charge (1,4,7) | 1.78 | % | 6.81 | % | 5.87 | % | 4.93 | % | ||||||||
Retirement Income and Appreciation Composite Index(6) | 2.82 | % | 8.04 | % | 6.34 | % | 5.36 | % | ||||||||
Barclays Capital Aggregrate Index (5) | 0.02 | % | 5.36 | % | 6.33 | % | 4.79 | % | ||||||||
BofA Merrill Lynch All U.S.Convertibles Index (5) | 11.55 | % | 15.87 | % | 5.88 | % | 7.36 | % | ||||||||
Lipper Intermediate Investment Grade Index (5) | 0.86 | % | 6.78 | % | 6.11 | % | 4.70 | % |
* | 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 five-year and since inception period represent the 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. A portion of the fees charged to the Y Class of the Fund was waived in 2011. Performance prior to waiving fees was lower than the actual returns shown. | |
3. | Fund performance for the one-year, five-year, and since inception periods represent the returns achieved by the Investor Class from 7/1/03 up to 5/17/10, the inception date of the A Class and the returns of the A Class since its inception. Expenses of the A 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 A Class been in existence since 7/1/03. A portion of the fees charged to the A Class of the Fund was waived since 2010. Performance prior to waiving fees was lower than the actual returns shown since 2010. The maximum sales charge for A Class is 4.75%. | |
4. | Fund performance for the one-year, five-year, and since inception periods represent the returns achieved by the Investor Class from 7/1/03 up to 9/1/10, the inception date of the C Class and the returns of the C Class since its inception. Expenses of the C 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 C Class been in existence since 7/1/03. A portion of the fees charged to the C Class of the Fund was waived since 2010. Performance prior to waiving fees was lower than the actual returns shown since 2010. The maximum contingent deferred sales charge for Class is 1.00% for shares redeemed within one year of the date of purchase. | |
5. | 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. | |
6. | 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. | |
7. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Investor, Y, A and C, Class shares was 1.09%, 0.81%, 1.21% and 2.01%, 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”) that invests primarily in income producing, short- and intermediate-term investment grade bonds and 25% to a sub-advisor that 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.
7
Table of Contents
Performance Overview
American Beacon Retirement Income and Appreciation FundSM
April 30, 2011 (Unaudited)
American Beacon Retirement Income and Appreciation FundSM
April 30, 2011 (Unaudited)
During the six-month period, the investment grade bond portion of the Fund returned -0.03% before expenses underperforming the 0.02% return for the Barclays Capital Aggregate Index. This portion of the Fund lagged as exposure to U.S. Treasuries and the Fund’s selection among Commercial Mortgage-Backed securities negatively impacted returns.
The remaining portion of the Fund, managed by the Fund’s sub-advisor, returned 10.51% before expenses. These results trailed the 11.55% 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. The most speculative, lower quality convertible issues performed better in the period. This portion of the Fund was also hurt by security selection within the Health Care and Technology sectors.
The Manager and the Fund’s sub-advisor remain focused on the Fund’s investment objectives of generating income and capital appreciation.
Top Ten Holdings
% of | ||||
Net Assets | ||||
Freddie Mac Gold Pool, 4.500%, Due 2/1/2041 | 1.4 | % | ||
Freddie Mac Gold Pool, 4.000%, Due 1/1/2041 | 1.2 | % | ||
EMC Corp., 1.750%, Due 12/1/2013 | 1.1 | % | ||
Fannie Mae Pool, 4.50%, Due 1/1/2040 | 1.0 | % | ||
Freddie Mac Gold Pool, 5.000%, Due 9/1/2035 | 0.9 | % | ||
Societe Generale, 1.326%, Due 4/11/2014 | 0.8 | % | ||
Fannie Mae Pool, 4.000%, Due 9/1/2040 | 0.7 | % | ||
Bank of America Corp., 7.625%, Due 6/1/2019 | 0.7 | % | ||
American Express Credit Account Master Trust, 5.350%, Due 1/15/2014 | 0.7 | % | ||
General Electric Capital Corp., 0.503%, Due 1/8/2016 | 0.7 | % |
Sector Allocation
% of | ||||
Fixed Income | ||||
Corporate | 39.2 | % | ||
U.S. Treasury | 22.7 | % | ||
Mortgage-Backed | 15.7 | % | ||
Convertibles | 13.1 | % | ||
Asset-Backed | 3.5 | % | ||
Commercial Mortgage-Backed Securities | 3.3 | % | ||
Convertible Obligations | 2.1 | % | ||
Other Government | 0.4 | % |
Sector Allocation
% of | ||||
Equities | ||||
Energy | 27.2 | % | ||
Information Technology. | 26.0 | % | ||
Financials | 14.9 | % | ||
Consumer Staples | 11.4 | % | ||
Industrials | 9.0 | % | ||
Materials | 4.5 | % | ||
Commingled Fund | 3.5 | % | ||
Health Care | 3.5 | % |
8
Table of Contents
Performance Overview
American Beacon Intermediate Bond FundSM
April 30, 2011 (Unaudited)
American Beacon Intermediate Bond FundSM
April 30, 2011 (Unaudited)
The Institutional Class of the Intermediate Bond Fund returned -0.07% for the six months ended April 30, 2011, trailing the Barclays Capital Aggregate Index (“Index”) return of 0.02% and the Lipper Intermediate Investment Grade Debt Funds Index return of 0.86% for the same period.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/11 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,5) | -0.07 | % | 5.06 | % | 6.61 | % | 5.71 | % | ||||||||
Y Class (1,2,5) | 0.14 | % | 5.15 | % | 6.63 | % | 5.72 | % | ||||||||
Investor Class (1,3,5) | -0.31 | % | 4.56 | % | 6.38 | % | 5.59 | % | ||||||||
A Class with sales charge (1,4,7) | -5.12 | % | -0.59 | % | 5.30 | % | 5.05 | % | ||||||||
A Class without sales charge (1,4,7) | -0.41 | % | 4.33 | % | 6.33 | % | 5.57 | % | ||||||||
C Class with sales charge (1,5,7) | -1.76 | % | 2.95 | % | 6.25 | % | 5.53 | % | ||||||||
C Class without sales charge (1,5,7) | -0.76 | % | 3.95 | % | 6.25 | % | 5.53 | % | ||||||||
Barclays Capital Agg. Index (6) | 0.02 | % | 5.36 | % | 6.33 | % | 5.74 | % | ||||||||
Lipper Intermediate Inv. Grade Index (6) | 0.86 | % | 6.78 | % | 6.11 | % | 5.55 | % |
* | 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 receipt of the settlement proceeds. | |
2. | Fund performance for the five-year and ten-year period represents the returns achieved by the Institutional Class from 4/30/01 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 4/30/01. A portion of the fees charged to the Y Class of the Fund was waived since 2010. Performance prior to waiving fees was lower than the actual returns shown since 2010. | |
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 4/30/01. A portion of the fees charged to the Investor Class of the Fund was waived since 2009. Performance prior to waiving fees was lower than the actual returns shown since 2009. | |
4. | Fund performance for the one-year, five-year, and ten-year period represents the total returns achieved by the Institutional Class from 4/30/01 through 3/2/09, the Investor Class from 3/2/09 up to 5/17/10, the inception date of the A Class, and the returns of the A Class since its inception. Expenses of the A Class are higher than those of the Institutional and Investor Classes. As a result, total returns shown may be higher than they would have been had the A Class been in existence since 4/30/01. A portion of the fees charged to the A Class of the Fund was waived since 2010. Performance prior to waiving fees was lower than the actual returns shown since 2010. The maximum sales charge for A Class is 4.75%. | |
5. | Fund performance for the one-year, five-year, and ten-year period represents the total returns achieved by the Institutional Class from 4/30/01 through 3/2/09, the Investor Class from 3/2/09 up to 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the C Class are higher than those of the Institutional and Investor Classes. As a result, total returns shown may be higher than they would have been had the C Class been in existence since 4/30/01. A portion of the fees charged to the C Class of the Fund was waived since 2010. Performance prior to waiving fees was lower than the actual returns shown since 2010. The maximum contingent deferred sales charge is 1.00% for shares redeemed within one year of the date of purchase. | |
6. | 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. | |
7. | The total annual Fund operating expense ratios set forth in the most recent Fund prospectus for the Institutional, Y, Investor, A and C Class shares was 0.34%, 0.68%, 0.84%, 1.06, and 1.83%, 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 significant underweighting in U.S. Treasuries also added value. From a security selection standpoint, the Fund’s underperformance was primarily due to exposure to U.S. Treasuries and poor selection among Commercial Mortgage-Backed securities.
The Fund’s investment managers remain focused on a conservative approach toward investing in the bond market and on issuer-specific opportunities.
9
Table of Contents
Performance Overview
American Beacon Intermediate Bond FundSM
April 30, 2011 (Unaudited)
American Beacon Intermediate Bond FundSM
April 30, 2011 (Unaudited)
Top Ten Holdings
% of | ||||
Net Assets | ||||
Freddie Mac Gold Pool, 5.00%, Due 4/1/2040 | 1.6 | % | ||
Fannie Mae Pool, 5.00%, Due 5/1/2040 | 1.4 | % | ||
Fannie Mae Pool, 4.500%, Due 3/1/2025 | 1.2 | % | ||
Fannie Mae Pool, 4.50%, Due 1/1/2040 | 1.2 | % | ||
Freddie Mac Gold Pool, 5.00%, Due 5/1/2040 | 1.0 | % | ||
Fannie Mae Pool, 5.50%, Due 6/1/2040 | 0.9 | % | ||
Fannie Mae Pool, 4.50%, Due 6/1/2025 | 0.9 | % | ||
The Bear Stearns Cos., Inc., 7.25%, Due 2/1/2018 | 0.8 | % | ||
Fannie Mae Pool, 5.00%, Due 1/1/2041 | 0.8 | % | ||
Fannie Mae Pool, 4.50%, Due 8/1/2040 | 0.8 | % |
Sector Allocation
% of | ||||
Fixed Income | ||||
Corporate | 45.1 | % | ||
Mortgage-Backed | 25.5 | % | ||
U.S. Treasury | 21.5 | % | ||
Commercial Mortgage Backed Securities | 4.0 | % | ||
Asset-Backed | 3.2 | % | ||
Agency | 0.4 | % | ||
Other Government | 0.3 | % |
10
Table of Contents
Performance Overview
American Beacon Short-Term Bond FundSM
April 30, 2011 (Unaudited)
American Beacon Short-Term Bond FundSM
April 30, 2011 (Unaudited)
The Institutional Class of the Short-Term Bond Fund (“Fund”) returned 0.24% for the six months ended April 30, 2011, which underperformed the BofA Merrill Lynch 1-3 Year Gov/Corp Index (“Index”) return of 0.34% and the Lipper Short Investment Grade Bond Funds Index (“Lipper”) return of 0.73%.
Annualized Total Returns | ||||||||||||||||
Periods Ended 4/30/11 | ||||||||||||||||
6 Months* | 1 Year | 5 Years | 10 Years | |||||||||||||
Institutional Class(1,4) | 0.24 | % | 2.35 | % | 4.24 | % | 3.91 | % | ||||||||
Y Class (1,2,4) | 0.18 | % | 2.16 | % | 4.22 | % | 3.90 | % | ||||||||
Investor Class(1,4) | 0.13 | % | 1.90 | % | 3.81 | % | 3.44 | % | ||||||||
A Class with sales charge (1,3,6) | -2.57 | % | -0.84 | % | 3.26 | % | 3.16 | % | ||||||||
A Class without sales charge (1,3,6) | -0.05 | % | 1.74 | % | 3.78 | % | 3.42 | % | ||||||||
C Class with sales charge (1,4,6) | -1.37 | % | 0.35 | % | 3.70 | % | 3.38 | % | ||||||||
C Class without sales charge (1,4,6) | -0.37 | % | 1.35 | % | 3.70 | % | 3.38 | % | ||||||||
Lipper Short Inv. Grade Index(3) | 0.73 | % | 3.29 | % | 3.83 | % | 3.44 | % | ||||||||
BofA Merrill Lynch 1-3 Yr. Gov./Corp. Index(3) | 0.34 | % | 2.26 | % | 4.46 | % | 4.02 | % |
* | 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 five-year and ten-year period represents the total returns achieved by the Institutional Class from 4/30/01 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 4/30/01. A portion of the fees charged to the Y Class of the Fund was waived since 2010. Performance prior to waiving fees was lower than the actual returns shown since 2010. | |
3. | Fund performance for the one-year, five-year, and ten-year period represents the total returns achieved by the Investor Class from 4/30/01 up to 5/17/10, the inception date of the A Class, and the returns of the A Class since its inception. Expenses of the A 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 A Class been in existence since 4/30/01. A portion of the fees charged to the A Class of the Fund was waived since 2010. Performance prior to waiving fees was lower than the actual returns shown since 2010. The maximum sales charge for A Class is 2.50%. | |
4. | Fund performance for the one-year, five-year, and ten-year period represents the total returns achieved by the Investor Class from 4/30/01 up to 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the C 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 C Class been in existence since 4/30/01. A portion of the fees charged to the C Class of the Fund was waived since 2010. Performance prior to waiving fees was lower than the actual returns shown since 2010. The maximum contingent deferred sales charge is 1.00% for shares redeemed within one year of the date of purchase. | |
5. | 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. | |
6. | The total annual Fund operating expense ratio set forth in the most recent Fund prospectus for the Institutional, Y, Investor, A and C Class shares was 0.35%, 0.65%, 0.86%, 1.02%, and 2.05%, 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. |
Gross of expenses, the Fund outperformed the Index for the period, but expenses brought the return below that of the Index.
During the period, the Fund was overweight in the Corporate and Asset-Backed sectors, which outperformed Treasuries and Agencies during the period as the credit markets continued to recover following the improving economy. The largest Corporate overweight position was in the Financial sector, which performed very well. Industrials had the next highest allocation and returns. The Asset-Backed holdings were comprised of credit card, auto and equipment receivables and did not include any residential mortgages. The Fund generally maintains overweight positions in the Corporate and Asset-Backed sectors to generate incremental yield-to-maturity compared to the Index.
Also during the period, the Fund’s duration was shorter than that of the Index which helped as interest rates rose. To protect the Fund from an ultimate rise in rates that will inevitably accompany the economic recovery, we intend to keep the Fund’s duration within approximately 20% of the Index duration until interest rate hikes by
11
Table of Contents
Performance Overview
American Beacon Short-Term Bond FundSM
April 30, 2011 (Unaudited)
American Beacon Short-Term Bond FundSM
April 30, 2011 (Unaudited)
the Federal Reserve Bank become more imminent.
Relative to Lipper, the Fund’s underperformance during the period was primarily attributable to the high-yield exposure in the Lipper peer group. The high yield sector continued to perform extraordinarily well as the credit markets improved, and the Fund’s lack of high-yield exposure significantly accounted for its relative underperformance.
In the mean time, we continue to look for opportunity in this low interest rate environment and strive to protect the Fund from an eventual rise in rates. We will also maintain our conservative approach towards credit risk and seek to outperform over the long term on a risk-adjusted basis.
Top Ten Holdings
% of | ||||
Net Assets | ||||
GE Capital Credit Card Master Note Trust, 3.690%, Due 7/15/2015 | 2.3 | % | ||
Ally Master Owner Trust, 1.969%, Due 1/15/2015 | 1.8 | % | ||
Government National Mortgage Association, 1.864%, Due 8/16/2031 | 1.8 | % | ||
Ford Credit Floorplan Master Owner Trust, 1.769%, Due 9/15/2014 | 1.7 | % | ||
ING Bank N.V., 1.359%, Due 3/15/2013 | 1.6 | % | ||
Nissan Master Owner Trust Receivables, 1.405%, Due 1/15/2015 | 1.6 | % | ||
Government National Mortgage Association, 2.450%, Due 7/16/2038 | 1.6 | % | ||
Verizon Communications, Inc., 0.918%, Due 3/28/2014 | 1.6 | % | ||
Government National Mortgage Association, 2.210%, Due 11/16/2034 | 1.6 | % | ||
Government National Mortgage Association, 2.210%, Due 12/16/2035 | 1.6 | % |
Sector Allocation
% of | ||||
Fixed Income | ||||
Corporate | 50.0 | % | ||
Asset-Backed | 21.0 | % | ||
Mortgage-Backed | 16.2 | % | ||
U.S. Treasury | 11.0 | % | ||
Commercial Mortgage Backed Securities | 1.8 | % |
12
Table of Contents
Fund Expenses
American Beacon Funds
April 30, 2011 (Unaudited)
American Beacon Funds
April 30, 2011 (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, 2010 through April 30, 2011.
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 that invest in a Fund through an IRA may be subject to a custodial IRA fee of $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 higher.
High Yield | Intermediate | Short-Term | ||||||||||
Institutional Class | Bond Fund | Bond Fund | Bond Fund | |||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/11 | $ | 1,068.06 | $ | 999.30 | $ | 1,002.37 | ||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 4.22 | $ | 1.58 | $ | 1.56 | ||||||
Annualized Expense Ratio | 0.82 | % | 0.32 | % | 0.31 | % |
Retirement | ||||||||||||||||
Income and | ||||||||||||||||
High Yield | Appreciation | Intermediate | Short-Term | |||||||||||||
Y Class | Bond Fund | Fund | Bond Fund | Bond Fund | ||||||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 4/30/11 | $ | 1,068.29 | $ | 1,022.36 | $ | 1001.41 | $ | 1,001.83 | ||||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 4.31 | $ | 4.18 | $ | 3.22 | $ | 3.21 | ||||||||
Annualized Expense Ratio | 0.84 | % | 0.83 | % | 0.65 | % | 0.65 | % |
Retirement | ||||||||||||||||
Income and | ||||||||||||||||
High Yield | Appreciation | Intermediate | Short-Term | |||||||||||||
Investor Class | Bond Fund | Fund | Bond Fund | Bond Fund | ||||||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 4/30/11 | $ | 1,066.53 | $ | 1,021.21 | $ | 996.93 | $ | 1,001.28 | ||||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 5.49 | $ | 5.49 | $ | 3.91 | $ | 3.76 | ||||||||
Annualized Expense Ratio | 1.07 | % | 1.10 | % | 0.79 | % | 0.76 | % |
Retirement | ||||||||||||||||
Income and | ||||||||||||||||
High Yield | Appreciation | Intermediate | Short-Term | |||||||||||||
A Class | Bond Fund | Fund | Bond Fund | Bond Fund | ||||||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 4/30/11 | $ | 1,065.22 | $ | 1,020.37 | $ | 995.93 | $ | 999.52 | ||||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 5.75 | $ | 5.96 | $ | 4.86 | $ | 4.09 | ||||||||
Annualized Expense Ratio | 1.12 | % | 1.19 | % | 0.98 | % | 0.83 | % |
Retirement | ||||||||||||||||
Income and | ||||||||||||||||
High Yield | Appreciation | Intermediate | Short-Term | |||||||||||||
C Class | Bond Fund | Fund | Bond Fund | Bond Fund | ||||||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 4/30/11 | $ | 1,062.71 | $ | 1,017.84 | $ | 992.40 | $ | 996.26 | ||||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 9.30 | $ | 9.91 | $ | 8.45 | $ | 7.80 | ||||||||
Annualized Expense Ratio | 1.82 | % | 1.98 | % | 1.71 | % | 1.58 | % |
High Yield | ||||
AMR Class | Bond Fund | |||
Beginning Account Value 11/1/10 | $ | 1,000.00 | ||
Ending Account Value 4/30/2011 | $ | 1,069.38 | ||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 2.90 | ||
Annualized Expense Ratio | 0.57 | % |
13
Table of Contents
Fund Expenses
American Beacon Funds
April 30, 2011 (Unaudited)
American Beacon Funds
April 30, 2011 (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 that invest in a Fund through an IRA may be subject to a custodial IRA fee of $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 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 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/11 | $ | 1,020.72 | $ | 1,023.22 | $ | 1,023.24 | ||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 4.12 | $ | 1.60 | $ | 1.58 | ||||||
Annualized Expense Ratio | 0.82 | % | 0.32 | % | 0.31 | % |
Retirement | ||||||||||||||||
Income and | ||||||||||||||||
High Yield | Appreciation | Intermediate | Short-Term | |||||||||||||
Y Class | Bond Fund | Fund | Bond Fund | Bond Fund | ||||||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 4/30/11 | $ | 1,020.62 | $ | 1,020.66 | $ | 1,021.58 | $ | 1,021.58 | ||||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 4.21 | $ | 4.18 | $ | 3.25 | $ | 3.24 | ||||||||
Annualized Expense Ratio | 0.84 | % | 0.83 | % | 0.65 | % | 0.65 | % |
Retirement | ||||||||||||||||
Income and | ||||||||||||||||
High Yield | Appreciation | Intermediate | Short-Term | |||||||||||||
Investor Class | Bond Fund | Fund | Bond Fund | Bond Fund | ||||||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 4/30/11 | $ | 1,019.48 | $ | 1,019.36 | $ | 1,020.88 | $ | 1,021.03 | ||||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 5.37 | $ | 5.49 | $ | 3.95 | $ | 3.80 | ||||||||
Annualized Expense Ratio | 1.07 | % | 1.10 | % | 0.79 | % | 0.76 | % |
Retirement | ||||||||||||||||
Income and | ||||||||||||||||
High Yield | Appreciation | Intermediate | Short-Term | |||||||||||||
A Class | Bond Fund | Fund | Bond Fund | Bond Fund | ||||||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 4/30/11 | $ | 1,019.22 | $ | 1,018.89 | $ | 1,019.93 | $ | 1,020.70 | ||||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 5.63 | $ | 5.96 | $ | 4.92 | $ | 4.14 | ||||||||
Annualized Expense Ratio | 1.12 | % | 1.19 | % | 0.98 | % | 0.83 | % |
Retirement | ||||||||||||||||
Income and | ||||||||||||||||
High Yield | Appreciation | Intermediate | Short-Term | |||||||||||||
C Class | Bond Fund | Fund | Bond Fund | Bond Fund | ||||||||||||
Beginning Account Value 11/1/10 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 4/30/11 | $ | 1,015.78 | $ | 1,014.97 | $ | 1,016.31 | $ | 1,016.98 | ||||||||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 9.09 | $ | 9.90 | $ | 8.55 | $ | 7.88 | ||||||||
Annualized Expense Ratio | 1.82 | % | 1.98 | % | 1.71 | % | 1.58 | % |
High Yield | ||||
AMR Class | Bond Fund | |||
Beginning Account Value 11/1/10 | $ | 1,000.00 | ||
Ending Account Value 4/30/11 | $ | 1,021.99 | ||
Expenses Paid During Period 11/1/10-4/30/11 * | $ | 2.83 | ||
Annualized Expense Ratio | 0.57 | % |
* | 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. |
14
Table of Contents
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Value | ||||||||
Shares | ($000) | |||||||
COMMON STOCKS - 0.63% | ||||||||
COMMUNICATIONS- 0.28% | ||||||||
Communications - 0.21% | ||||||||
Charter Communications, Inc. | $ | 9,435 | $ | 308 | ||||
308 | ||||||||
Media - 0.07% | ||||||||
Dex One Corp.A | 23,761 | 100 | ||||||
SuperMedia, Inc.A | 1,037 | 5 | ||||||
105 | ||||||||
CONSUMER DISCRETIONARY- 0.14% | ||||||||
Automobiles - 0.14% | ||||||||
General Motors Co.A | 6,092 | 196 | ||||||
FINANCIALS- 0.05% | ||||||||
Finance - 0.05% | ||||||||
Marsico Holdings LLCA | 13,199 | 66 | ||||||
RIGHTS/WARRANTS- 0.16% | ||||||||
Rights/Warrants - 0.16% | ||||||||
General Motors Co.,A B | ||||||||
Due 7/10/2016A B | 5,538 | 128 | ||||||
Due 7/10/2019A B | 5,538 | 99 | ||||||
Total Common Stocks (Cost $2,464) | 902 | |||||||
PREFERRED STOCKS - 0.33% | ||||||||
FINANCIALS- 0.33% | ||||||||
Diversified Financials - 0.01% | ||||||||
Federal Home Loan Mortgage Corp. | 10,000 | 20 | ||||||
Finance - 0.32% | ||||||||
Ally Financial, Inc. | 11,759 | 449 | ||||||
449 | ||||||||
Total Preferred Stocks (Cost $541) | 469 | |||||||
Par Amount | Value | ||||||||
($000) | ($000) | ||||||||
CORPORATE OBLIGATIONS - 93.97% | |||||||||
Finance - 10.71% | |||||||||
Alliant Holdings I, Inc., 11.00%, Due 5/1/2015C | 575 | 608 | |||||||
Ally Financial, Inc., | |||||||||
6.875%, Due 8/28/2012 | 600 | 631 | |||||||
8.00%, Due 12/31/2018 | 300 | 332 | |||||||
7.50%, Due 9/15/2020C | 300 | 327 | |||||||
Bank of America Corp., 8.125%, Due 12/29/2049 | 800 | 865 | |||||||
Bank of New York Mellon SA Institucion de Banca Multiple, 9.625%, Due 5/2/2021C | 275 | 277 | |||||||
Bank One Capital III, 8.75%, Due 9/1/2030 | 420 | 536 | |||||||
CIT Group, Inc., | |||||||||
7.00%, Due 5/1/2017 | 1,400 | 1,411 | |||||||
6.625%, Due 4/1/2018C | 100 | 107 | |||||||
Diversey Holdings, Inc., 10.50%, Due 5/15/2020E | 600 | 699 | |||||||
E*Trade Financial Corp., 12.50%, Due 11/30/2017E | 275 | 328 | |||||||
Fontainebleau Las Vegas Holdings LLC, 10.25%, Due 6/15/2015C F | 1,800 | 1 | |||||||
Forest City Enterprises, Inc., 7.625%, Due 6/1/2015 | 600 | 588 | |||||||
Harbinger Group, Inc., 10.625%, Due 11/15/2015C | 300 | 309 | |||||||
HUB International Holdings, Inc., 10.25%, Due 6/15/2015C | 825 | 858 | |||||||
International Lease Finance Corp., 5.65%, Due 6/1/2014 | 1,000 | 1,019 | |||||||
iPayment Holdings, Inc., 10.25%, Due 5/15/2018C | 325 | 328 | |||||||
Liberty Mutual Group, Inc., 10.75%, Due 6/15/2058C D | 735 | 1,000 | |||||||
Marsico Holdings LLC / Marsico Co Notes Corp., 10.625%, Due 1/15/2020C E | 805 | 644 | |||||||
MBNA Capital A, 8.278%, Due 12/1/2026 | 625 | 644 | |||||||
MetLife, Inc., 10.75%, Due 8/1/2039 | 300 | 423 | |||||||
Nationwide Mutual Insurance Co., 9.375%, Due 8/15/2039C | 500 | 629 | |||||||
Needle Merger Sub Corp., 8.125%, Due 3/15/2019C | 300 | 308 |
See accopanying notes
15
Table of Contents
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
Nuveen Investments, Inc., 10.50%, Due 11/15/2015 | $ | 350 | $ | 364 | ||||
Oppenheimer Holdings, Inc., 8.75%, Due 4/15/2018C | 275 | 287 | ||||||
Orascom Telecom Finance SCA, 7.875%, Due 2/8/2014C | 660 | 673 | ||||||
UPCB Finance III Ltd., 6.625%, Due 7/1/2020C | 800 | 787 | ||||||
Yanlord Land Group Ltd., 10.625%, Due 3/29/2018C | 300 | 308 | ||||||
15,291 | ||||||||
Industrials - 76.30% | ||||||||
Abengoa Finance SAU, 8.875%, Due 11/1/2017C | 700 | 711 | ||||||
Accuride Corp., 9.50%, Due 8/1/2018 | 310 | 346 | ||||||
Advanced Micro Devices, Inc., | ||||||||
8.125%, Due 12/15/2017 | 200 | 212 | ||||||
7.75%, Due 8/1/2020 | 300 | 313 | ||||||
AEP Industries, Inc., 8.25%, Due 4/15/2019C | 400 | 410 | ||||||
Allison Transmission, Inc., 7.125%, Due 5/15/2019C | 575 | 582 | ||||||
American Petroleum Tankers Parent LLC / AP Tankers Co., 10.25%, Due 5/1/2015C | 679 | 720 | ||||||
Aquilex Holdings LLC/Aquilex Finance Corp., 11.125%, Due 12/15/2016 | 250 | 258 | ||||||
ARAMARK Holdings Corp., 8.625%, Due 5/1/2016C E | 100 | 103 | ||||||
Ardagh Packaging Finance plc, 9.125%, Due 10/15/2020C | 250 | 276 | ||||||
Atkore International, Inc., 9.875%, Due 1/1/2018C | 415 | 451 | ||||||
Avaya, Inc., 7.00%, Due 4/1/2019C | 700 | 693 | ||||||
Aviv Healthcare Properties LP, 7.75%, Due 2/15/2019C | 500 | 528 | ||||||
Berry Petroleum Co., 10.25%, Due 6/1/2014 | 397 | 462 | ||||||
Blue Merger Sub, Inc., 7.625%, Due 2/15/2019C | 400 | 410 | ||||||
Boart Longyear Management Pty Ltd., 7.00%, Due 4/1/2021C | 100 | 104 | ||||||
BreitBurn Energy Partners LP / BreitBurn Finance Corp., 8.625%, Due 10/15/2020 | 400 | 426 | ||||||
Brickman Group Holdings, Inc., 9.125%, Due 11/1/2018C | 435 | 455 | ||||||
Brightstar Corp., 9.50%, Due 12/1/2016C | 635 | 679 | ||||||
Brown Shoe Co, Inc., 7.125%, Due 5/15/2019C | 140 | 140 | ||||||
Buccaneer Merger Sub, Inc., 9.125%, Due 1/15/2019C | 300 | 322 | ||||||
Building Materials Corp of America, 6.75%, Due 5/1/2021C | 180 | 182 | ||||||
Cablevision Systems Corp., 8.625%, Due 9/15/2017 | 500 | 560 | ||||||
Caesars Entertainment Operating Co, Inc., | ||||||||
10.75%, Due 2/1/2016 | 750 | 739 | ||||||
11.25%, Due 6/1/2017 | 1,000 | 1,139 | ||||||
Calumet Specialty Products Partners LP/Calumet Finance Corp., 9.375%, Due 5/1/2019C | 310 | 324 | ||||||
CCH II LLC / CCH II Capital Corp., 13.50%, Due 11/30/2016 | 400 | 483 | ||||||
CCO Holdings LLC / CCO Holdings Capital Corp., 7.25%, Due 10/30/2017 | 300 | 320 | ||||||
CDW LLC / CDW Finance Corp., | ||||||||
11.50%, Due 10/12/2015E | 214 | 233 | ||||||
8.50%, Due 4/1/2019C | 500 | 505 | ||||||
CEDC Finance Corp International, Inc., 9.125%, Due 12/1/2016C | 950 | 918 | ||||||
Cemex SAB de CV, 9.00%, Due 1/11/2018C | 500 | 518 | ||||||
Cengage Learning Acquisitions, Inc., 10.50%, Due 1/15/2015C | 625 | 642 | ||||||
Central Garden and Pet Co., 8.25%, Due 3/1/2018 | 445 | 469 | ||||||
Cenveo Corp., 8.875%, Due 2/1/2018 | 475 | 477 | ||||||
CEVA Group plc, | ||||||||
11.625%, Due 10/1/2016C | 100 | 111 | ||||||
8.375%, Due 12/1/2017C | 100 | 104 | ||||||
11.50%, Due 4/1/2018C | 500 | 546 | ||||||
Chaparral Energy, Inc., | ||||||||
9.875%, Due 10/1/2020C | 600 | 678 | ||||||
8.25%, Due 9/1/2021C | 500 | 529 | ||||||
CHC Helicopter S.A., 9.25%, Due 10/15/2020C | 940 | 920 | ||||||
Chesapeake Energy Corp., | ||||||||
6.625%, Due 8/15/2020 | 900 | 969 | ||||||
6.125%, Due 2/15/2021 | 100 | 103 | ||||||
Citadel Broadcasting Corp., 7.75%, Due 12/15/2018C | 300 | 325 | ||||||
Clayton Williams Energy, Inc., 7.75%, Due 4/1/2019C | 690 | 692 | ||||||
Clear Channel Communications, Inc., 9.00%, Due 3/1/2021C | 900 | 915 | ||||||
Clearwire Communications LLC/Clearwire Finance, Inc., 12.00%, Due 12/1/2017C | 410 | 444 | ||||||
ClubCorp Club Operations, Inc., 10.00%, Due 12/1/2018C | 500 | 511 | ||||||
CMA CGM S.A., 8.50%, Due 4/15/2017C | 280 | 276 |
See accompanying notes
16
Table of Contents
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
Coffeyville Resources LLC / Coffeyville Finance, Inc., 10.875%, Due 4/1/2017C | $ | 560 | $ | 638 | ||||
Colt Defense LLC / Colt Finance Corp., 8.75%, Due 11/15/2017C | 730 | 610 | ||||||
CommScope, Inc., 8.25%, Due 1/15/2019C | 300 | 316 | ||||||
Community Health Systems, Inc., 8.875%, Due 7/15/2015 | 200 | 205 | ||||||
Consol Energy, Inc., | ||||||||
8.00%, Due 4/1/2017 | 770 | 851 | ||||||
8.25%, Due 4/1/2020 | 365 | 407 | ||||||
CRC Health Corp., 10.75%, Due 2/1/2016 | 675 | 689 | ||||||
Cricket Communications, Inc., 7.75%, Due 10/15/2020 | 1,030 | 1,051 | ||||||
Cumulus Media, Inc., 7.75%, Due 5/1/2019C | 100 | 100 | ||||||
Dave & Buster’s, Inc., 11.00%, Due 6/1/2018 | 600 | 656 | ||||||
Dean Foods Co., 9.75%, Due 12/15/2018C | 600 | 623 | ||||||
Digicel Group Ltd., 9.125%, Due 1/15/2015C | 475 | 494 | ||||||
DISH DBS Corp., 7.125%, Due 2/1/2016 | 1,100 | 1,171 | ||||||
DJO Finance LLC / DJO Finance Corp., 7.75%, Due 4/15/2018C | 100 | 103 | ||||||
DynCorp International, Inc., 10.375%, Due 7/1/2017C | 980 | 1,048 | ||||||
eAccess Ltd., 8.25%, Due 4/1/2018C | 400 | 406 | ||||||
Energy XXI Gulf Coast, Inc., 9.25%, Due 12/15/2017C | 1,105 | 1,203 | ||||||
EnergySolutions Inc / EnergySolutions LLC, 10.75%, Due 8/15/2018C | 575 | 638 | ||||||
Equinox Holdings, Inc., 9.50%, Due 2/1/2016C | 125 | 134 | ||||||
Euramax International, Inc., 9.50%, Due 4/1/2016C | 400 | 416 | ||||||
EVERTEC, Inc., 11.00%, Due 10/1/2018C | 600 | 647 | ||||||
Expro Finance Luxembourg SCA, 8.50%, Due 12/15/2016C | 800 | 782 | ||||||
FAGE Dairy Industry SA / FAGE USA Dairy Industry, Inc., 9.875%, Due 2/1/2020C | 815 | 823 | ||||||
First Data Corp., | ||||||||
9.875%, Due 9/24/2015 | 526 | 544 | ||||||
8.25%, Due 1/15/2021C | 224 | 223 | ||||||
12.625%, Due 1/15/2021C | 374 | 410 | ||||||
FMG Resources August 2006 Pty Ltd., | ||||||||
7.00%, Due 11/1/2015C | 300 | 317 | ||||||
6.875%, Due 2/1/2018C | 400 | 422 | ||||||
Ford Motor Credit Co LLC, | ||||||||
6.625%, Due 8/15/2017 | 600 | 661 | ||||||
5.00%, Due 5/15/2018 | 560 | 560 | ||||||
8.125%, Due 1/15/2020 | 900 | 1,068 | ||||||
Freescale Semiconductor, Inc., | ||||||||
8.875%, Due 12/15/2014 | 200 | 209 | ||||||
10.75%, Due 8/1/2020C | 500 | 575 | ||||||
Frontier Communications Corp., | ||||||||
8.25%, Due 4/15/2017 | 200 | 217 | ||||||
8.50%, Due 4/15/2020 | 300 | 325 | ||||||
8.75%, Due 4/15/2022 | 400 | 433 | ||||||
GCI, Inc., 8.625%, Due 11/15/2019 | 370 | 408 | ||||||
Giant Funding Corp., 8.25%, Due 2/1/2018C | 300 | 311 | ||||||
Goodrich Petroleum Corp., 8.875%, Due 3/15/2019C | 500 | 505 | ||||||
HCA Holdings, Inc., 7.75%, Due 5/15/2021C | 200 | 209 | ||||||
HCA, Inc., 9.625%, Due 11/15/2016E | 1,200 | 1,288 | ||||||
Helix Energy Solutions Group, Inc., 9.50%, Due 1/15/2016C | 330 | 350 | ||||||
Hilcorp Energy I LP/Hilcorp Finance Co., 8.00%, Due 2/15/2020C | 500 | 536 | ||||||
Hyva Global BV, 8.625%, Due 3/24/2016C | 200 | 206 | ||||||
IASIS Healthcare LLC / IASIS Capital Corp., 8.375%, Due 5/15/2019C | 375 | 381 | ||||||
Ineos Finance plc, 9.00%, Due 5/15/2015C | 200 | 219 | ||||||
Ineos Group Holdings plc, 8.50%, Due 2/15/2016C | 600 | 621 | ||||||
Intelsat Jackson Holdings S.A., | ||||||||
11.25%, Due 6/15/2016 | 600 | 638 | ||||||
7.25%, Due 10/15/2020C | 100 | 101 | ||||||
7.50%, Due 4/1/2021C | 500 | 508 | ||||||
Intelsat Luxembourg S.A., 11.25%, Due 2/4/2017 | 625 | 682 | ||||||
International Coal Group, Inc., 9.125%, Due 4/1/2018 | 430 | 487 | ||||||
inVentiv Health, Inc., 10.00%, Due 8/15/2018C | 625 | 666 | ||||||
Jarden Corp., | ||||||||
7.50%, Due 5/1/2017 | 700 | 752 | ||||||
6.125%, Due 11/15/2022 | 100 | 100 |
See accompanying notes
17
Table of Contents
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
JBS Finance II Ltd., 8.25%, Due 1/29/2018C | $ | 165 | $ | 171 | ||||
JBS USA LLC/JBS USA Finance, Inc., 11.625%, Due 5/1/2014 | 375 | 439 | ||||||
Kabel BW Erste Beteiligungs GmbH / Kabel Baden-Wurttemberg GmbH & Co KG, 7.50%, Due 3/15/2019C | 650 | 666 | ||||||
Key Energy Services, Inc., 6.75%, Due 3/1/2021 | 520 | 534 | ||||||
Liberty Tire Recycling, 11.00%, Due 10/1/2016C | 425 | 476 | ||||||
Linn Energy LLC/Linn Energy Finance Corp., | ||||||||
8.625%, Due 4/15/2020 | 700 | 774 | ||||||
7.75%, Due 2/1/2021C | 670 | 718 | ||||||
M/I Homes, Inc., 8.625%, Due 11/15/2018C | 500 | 498 | ||||||
MacDermid, Inc., 9.50%, Due 4/15/2017C | 1,125 | 1,197 | ||||||
Mandalay Resort Group, 7.625%, Due 7/15/2013 | 500 | 503 | ||||||
Marina District Finance Co, Inc., 9.875%, Due 8/15/2018C | 300 | 322 | ||||||
MedAssets, Inc., 8.00%, Due 11/15/2018C | 300 | 308 | ||||||
Media General, Inc., 11.75%, Due 2/15/2017 | 300 | 305 | ||||||
Meritor, Inc., 10.625%, Due 3/15/2018 | 500 | 566 | ||||||
MetroPCS Wireless, Inc., 7.875%, Due 9/1/2018 | 400 | 431 | ||||||
MGM Resorts International, 6.625%, Due 7/15/2015 | 1,000 | 963 | ||||||
Michaels Stores, Inc., 7.75%, Due 11/1/2018C | 600 | 620 | ||||||
Midwest Gaming Borrower LLC / Midwest Finance Corp., 11.625%, Due 4/15/2016C | 625 | 669 | ||||||
Midwest Vanadium Pty Ltd., 11.50%, Due 2/15/2018C | 415 | 431 | ||||||
Momentive Performance Materials, Inc., 9.00%, Due 1/15/2021C | 465 | 501 | ||||||
Mylan, Inc., 7.875%, Due 7/15/2020C | 700 | 774 | ||||||
Nalco Co., 6.625%, Due 1/15/2019C | 465 | 479 | ||||||
NBTY, Inc., 9.00%, Due 10/1/2018C | 225 | 245 | ||||||
NCL Corp Ltd., | ||||||||
11.75%, Due 11/15/2016 | 400 | 469 | ||||||
9.50%, Due 11/15/2018C | 200 | 213 | ||||||
NES Rentals Holdings, Inc., 12.25%, Due 4/15/2015C | 300 | 300 | ||||||
NewPage Corp., 11.375%, Due 12/31/2014 | 700 | 697 | ||||||
NII Capital Corp., 7.625%, Due 4/1/2021 | 310 | 328 | ||||||
Norske Skogindustrier ASA, 6.125%, Due 10/15/2015C | 1,100 | 968 | ||||||
Nortek, Inc., 8.50%, Due 4/15/2021C | 95 | 95 | ||||||
Novasep Holding SAS, 9.75%, Due 12/15/2016C | 280 | 158 | ||||||
Novelis, Inc., 8.75%, Due 12/15/2020 | 400 | 447 | ||||||
NPC International, Inc., 9.50%, Due 5/1/2014 | 625 | 638 | ||||||
NXP BV / NXP Funding LLC, 9.75%, Due 8/1/2018C | 300 | 347 | ||||||
OnCure Holdings, Inc., 11.75%, Due 5/15/2017 | 650 | 676 | ||||||
OPTI Canada, Inc., | ||||||||
9.00%, Due 12/15/2012C | 100 | 101 | ||||||
9.75%, Due 8/15/2013C | 300 | 303 | ||||||
8.25%, Due 12/15/2014 | 645 | 343 | ||||||
Oshkosh Corp., 8.50%, Due 3/1/2020 | 410 | 457 | ||||||
Packaging Dynamics Corp., 8.75%, Due 2/1/2016C | 200 | 207 | ||||||
Peabody Energy Corp., 7.375%, Due 11/1/2016 | 800 | 902 | ||||||
Petco Animal Supplies, Inc., 9.25%, Due 12/1/2018C | 990 | 1,068 | ||||||
Petrohawk Energy Corp., 10.50%, Due 8/1/2014 | 700 | 802 | ||||||
PharmaNet Development Group, Inc., 10.875%, Due 4/15/2017C | 300 | 332 | ||||||
Pilgrim’s Pride Corp., 7.875%, Due 12/15/2018C | 425 | 398 | ||||||
Pinnacle Entertainment, Inc., 7.50%, Due 6/15/2015 | 800 | 816 | ||||||
Pinnacle Foods Finance LLC / Pinnacle Foods Finance Corp., | ||||||||
9.25%, Due 4/1/2015 | 800 | 836 | ||||||
10.625%, Due 4/1/2017 | 400 | 430 | ||||||
Pittsburgh Glass Works LLC, 8.50%, Due 4/15/2016C | 970 | 1,013 | ||||||
Plains Exploration & Production Co., | ||||||||
10.00%, Due 3/1/2016 | 800 | 904 | ||||||
6.625%, Due 5/1/2021 | 210 | 211 | ||||||
Pokagon Gaming Authority, 10.375%, Due 6/15/2014C | 600 | 619 | ||||||
Prestige Brands, Inc., 8.25%, Due 4/1/2018 | 630 | 673 | ||||||
Quicksilver Resources, Inc., | ||||||||
8.25%, Due 8/1/2015 | 300 | 318 | ||||||
9.125%, Due 8/15/2019 | 500 | 549 | ||||||
Quiksilver, Inc., 6.875%, Due 4/15/2015 | 405 | 399 |
See accompanying notes
18
Table of Contents
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
QVC, Inc., 7.50%, Due 10/1/2019C | $ | 320 | $ | 340 | ||||
RBS Global Inc / Rexnord LLC, 8.50%, Due 5/1/2018 | 800 | 868 | ||||||
Regal Cinemas Corp., 8.625%, Due 7/15/2019 | 350 | 377 | ||||||
Reliance Intermediate Holdings LP, 9.50%, Due 12/15/2019C | 610 | 673 | ||||||
Reynolds Group Issuer Inc / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu, | ||||||||
8.50%, Due 5/15/2018C | 900 | 926 | ||||||
9.00%, Due 4/15/2019C | 450 | 474 | ||||||
8.25%, Due 2/15/2021C | 100 | 102 | ||||||
Rite Aid Corp., | ||||||||
9.75%, Due 6/12/2016 | 1,255 | 1,412 | ||||||
8.00%, Due 8/15/2020 | 100 | 108 | ||||||
Rotech Healthcare, Inc., 10.50%, Due 3/15/2018C | 375 | 380 | ||||||
Ryerson, Inc., 12.00%, Due 11/1/2015 | 295 | 319 | ||||||
SandRidge Energy, Inc., | ||||||||
8.00%, Due 6/1/2018C | 800 | 846 | ||||||
7.50%, Due 3/15/2021C | 415 | 437 | ||||||
Shingle Springs Tribal Gaming Authority, 9.375%, Due 6/15/2015C | 400 | 280 | ||||||
Simmons Foods, Inc., 10.50%, Due 11/1/2017C | 500 | 539 | ||||||
Sitel LLC / Sitel Finance Corp., 11.50%, Due 4/1/2018 | 400 | 377 | ||||||
Smurfit Kappa Treasury Funding Ltd., 7.50%, Due 11/20/2025 | 900 | 875 | ||||||
Solo Cup Co., 8.50%, Due 2/15/2014 | 300 | 263 | ||||||
Spectrum Brands Holdings, Inc., 9.50%, Due 6/15/2018C | 325 | 363 | ||||||
Sprint Capital Corp., 8.75%, Due 3/15/2032 | 780 | 854 | ||||||
Sprint Nextel Corp., 8.375%, Due 8/15/2017 | 800 | 897 | ||||||
Station Casinos, Inc., | ||||||||
6.875%, Due 3/1/2016F | 500 | 0 | ||||||
7.75%, Due 8/15/2016F | 500 | 0 | ||||||
SunGard Data Systems, Inc., | ||||||||
10.25%, Due 8/15/2015 | 100 | 105 | ||||||
7.625%, Due 11/15/2020C | 600 | 626 | ||||||
Telesat Canada / Telesat LLC, 12.50%, Due 11/1/2017 | 500 | 595 | ||||||
The Goodyear Tire & Rubber Co, 8.25%, Due 8/15/2020 | 800 | 889 | ||||||
The Hertz Corp, | ||||||||
7.50%, Due 10/15/2018C | 400 | 420 | ||||||
6.75%, Due 4/15/2019C | 400 | 408 | ||||||
The Manitowoc Co Inc, | ||||||||
9.50%, Due 2/15/2018 | 600 | 672 | ||||||
8.50%, Due 11/1/2020 | 100 | 110 | ||||||
Ticketmaster Entertainment LLC / Ticketmaster Noteco, Inc., 10.75%, Due 8/1/2016. | 700 | 766 | ||||||
Titan International, Inc., 7.875%, Due 10/1/2017C | 440 | 473 | ||||||
Trans Union LLC/TransUnion Financing Corp., 11.375%, Due 6/15/2018 | 300 | 347 | ||||||
Trimas Corp., 9.75%, Due 12/15/2017 | 200 | 220 | ||||||
Tutor Perini Corp., 7.625%, Due 11/1/2018C | 440 | 449 | ||||||
tw telecom holdings, Inc., 8.00%, Due 3/1/2018 | 325 | 353 | ||||||
Uncle Acquisition 2010 Corp., 8.625%, Due 2/15/2019C | 450 | 478 | ||||||
United Rentals North America, Inc., 8.375%, Due 9/15/2020 | 520 | 554 | ||||||
United Surgical Partners International, Inc., 9.25%, Due 5/1/2017E | 700 | 741 | ||||||
Univision Communications, Inc., | ||||||||
6.875%, Due 5/15/2019C | 475 | 477 | ||||||
7.875%, Due 11/1/2020C | 500 | 533 | ||||||
Virgolino de Oliveira Finance Ltd., 10.50%, Due 1/28/2018C | 400 | 431 | ||||||
Visant Corp., 10.00%, Due 10/1/2017 | 1,220 | 1,317 | ||||||
WCA Waste Corp., 9.25%, Due 6/15/2014 | 800 | 822 | ||||||
West Corp., 7.875%, Due 1/15/2019C | 800 | 824 | ||||||
Wind Acquisition Finance S.A., | ||||||||
11.75%, Due 7/15/2017C E | 475 | 552 | ||||||
7.25%, Due 2/15/2018C | 325 | 344 | ||||||
Wind Acquisition Holdings Finance S.A., 12.25%, Due 7/15/2017C | 227 | 280 | ||||||
WMG Acquisition Corp., 9.50%, Due 6/15/2016 | 800 | 852 | ||||||
Yonkers Racing Corp., 11.375%, Due 7/15/2016C | 750 | 825 | ||||||
108,956 | ||||||||
Utilities - 6.96% |
See accompanying notes
19
Table of Contents
American Beacon High Yield Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
Calpine Corp., | ||||||||
7.875%, Due 7/31/2020C | $ | 200 | $ | 216 | ||||
7.50%, Due 2/15/2021C | 600 | 635 | ||||||
Copano Energy LLC / Copano Energy Finance Corp., 7.125%, Due 4/1/2021 | 200 | 205 | ||||||
Crosstex Energy LP / Crosstex Energy Finance Corp., 8.875%, Due 2/15/2018 | 500 | 546 | ||||||
Dynegy Holdings, Inc., 8.375%, Due 5/1/2016 | 300 | 260 | ||||||
El Paso Corp., 7.00%, Due 6/15/2017 | 800 | 887 | ||||||
Elwood Energy LLC, 8.159%, Due 7/5/2026 | 631 | 614 | ||||||
Energy Future Holdings Corp., 5.55%, Due 11/15/2014 | 410 | 359 | ||||||
Energy Future Intermediate Holding Co LLC / EFIH Finance, Inc., 10.00%, Due 12/1/2020 | 308 | 331 | ||||||
Energy Transfer Equity LP, 7.50%, Due 10/15/2020 | 275 | 301 | ||||||
Enterprise Products Operating LLC, 7.034%, Due 1/15/2068 | 1,210 | 1,276 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp., 7.875%, Due 12/15/2018C | 435 | 442 | ||||||
Inergy LP/Inergy Finance Corp., 7.00%, Due 10/1/2018C | 410 | 433 | ||||||
MarkWest Energy Partners LP / MarkWest Energy Finance Corp., 6.75%, Due 11/1/2020 | 500 | 516 | ||||||
Martin Midstream Partners LP / Martin Midstream Finance Corp., 8.875%, Due 4/1/2018 | 820 | 877 | ||||||
Regency Energy Partners LP/Regency Energy Finance Corp., | ||||||||
9.375%, Due 6/1/2016 | 475 | 540 | ||||||
6.875%, Due 12/1/2018 | 45 | 48 | ||||||
Targa Resources Partners LP / Targa Resources Partners Finance Corp., 6.875%, Due 2/1/2021C | 440 | 438 | ||||||
Texas Competitive Electric Holdings Co LLC / TCEH Finance, Inc., | ||||||||
10.25%, Due 11/1/2015 | 300 | 194 | ||||||
11.50%, Due 10/1/2020C | 400 | 411 | ||||||
15.00%, Due 4/1/2021C | 400 | 354 | ||||||
The AES Corp, 9.75%, Due 4/15/2016 | 50 | 58 | ||||||
9,941 | ||||||||
Total Corporate Obligations (Cost $126,026) | 134,188 | |||||||
CONVERTIBLE OBLIGATIONS - 0.88% | ||||||||
Finance - 0.26% | ||||||||
E*Trade Financial Corp., %, Due 8/31/2019 | 240 | 377 | ||||||
Hotels, Restaurants & Leisure - 0.62% | ||||||||
Horizon Lines, Inc., 4.25%, Due 8/15/2012 | 1,025 | 875 | ||||||
Total Convertible Obligations (Cost $1,080) | 1,252 | |||||||
Shares | ||||||||
SHORT-TERM INVESTMENTS - 3.05% (Cost $4,361) | ||||||||
JPMorgan U.S. Government Money Market Fund | 4,361,232 | 4,361 | ||||||
TOTAL INVESTMENTS - 98.86% (Cost $134,473) | 141,172 | |||||||
OTHER ASSETS, NET OF LIABILITIES - 1.14% | 1,632 | |||||||
TOTAL NET ASSETS - 100.00% | $ | 142,804 | ||||||
Percentages are stated as a percent of net assets. |
A | Non-income producing security. | |
B | Warrant | |
C | 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 $68,470 or 47.95% of net assets. The Fund has no right to demand registration of these securities. | |
D | 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. | |
E | Is Payment in Kind. | |
F | Non-income producing, issuer is in default. |
See accompanying notes
20
Table of Contents
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Value | ||||||||
Shares | ($000) | |||||||
COMMON STOCKS - 5.93% | ||||||||
COMMINGLED FUND- 0.28% | ||||||||
Commingled Fund - 0.28% | ||||||||
MetLife, Inc. | 4,800 | $ | 420 | |||||
ENERGY- 1.62% | ||||||||
Energy Equipment & Services - 1.04% | ||||||||
Baker Hughes, Inc. | 5,500 | 426 | ||||||
Helmerich & Payne, Inc. | 8,000 | 530 | ||||||
Noble Corp. | 9,500 | 409 | ||||||
Superior Energy Services, Inc.A | 5,500 | 211 | ||||||
1,576 | ||||||||
Oil & Gas - 0.58% | ||||||||
Occidental Petroleum Corp. | 3,800 | 434 | ||||||
Suncor Energy, Inc. | 9,500 | 438 | ||||||
872 | ||||||||
FINANCIALS- 0.60% | ||||||||
Diversified Financials - 0.60% | ||||||||
Affiliated Managers Group, Inc.A | 3,700 | 404 | ||||||
T Rowe Price Group, Inc. | 7,700 | 494 | ||||||
HEALTH CARE- 0.28% | ||||||||
Health Care Equipment & Supplies - 0.28% | ||||||||
Covidien plc | 7,500 | 418 | ||||||
INDUSTRIALS- 0.72% | ||||||||
Aerospace & Defense - 0.13% | ||||||||
United Technologies Corp. | 2,150 | 193 | ||||||
Industrial Conglomerates - 0.31% | ||||||||
Siemens AGB | 3,250 | 473 | ||||||
Machinery - 0.28% | ||||||||
Eaton Corp. | 7,800 | 418 | ||||||
INFORMATION TECHNOLOGY- 2.07% | ||||||||
Communications Equipment - 0.20% | ||||||||
Cisco Systems, Inc. | 17,000 | 299 | ||||||
IT Consulting & Services - 0.29% | ||||||||
Accenture plc | 7,770 | 444 | ||||||
Semiconductor Equipment & Products - 0.69% | ||||||||
Applied Materials, Inc. | 28,000 | 439 | ||||||
QUALCOMM, Inc. | 10,600 | 603 | ||||||
1,042 | ||||||||
Software - 0.89% | ||||||||
Autodesk, Inc. | 9,500 | 427 | ||||||
Microsoft Corp. | 12,000 | 312 | ||||||
Oracle Corp. | 17,000 | 613 | ||||||
1,352 | ||||||||
MATERIALS- 0.36% | ||||||||
Metals & Mining - 0.36% | ||||||||
Barrick Gold Corp. | 10,700 | 546 | ||||||
Total Common Stocks (Cost $7,857) | 8,951 | |||||||
CONVERTIBLE PREFERRED STOCKS - 0.65% | ||||||||
CONSUMER STAPLES- 0.44% | ||||||||
Food Products - 0.44% | ||||||||
Bunge Ltd. | 6,058 | 651 | ||||||
FINANCIALS- 0.21% | ||||||||
Diversified Financials - 0.21% | ||||||||
Wells Fargo & Co. | 300 | 324 | ||||||
Total Convertible Preferred Stocks (Cost $749) | 975 | |||||||
PREFERRED STOCKS - 1.41% | ||||||||
CONSUMER STAPLES- 0.48% | ||||||||
Food Products - 0.48% | ||||||||
Archer-Daniels-Midland Co. | 15,350 | 719 |
See accompanying notes
21
Table of Contents
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Value | ||||||||
Shares | ($000) | |||||||
ENERGY- 0.55% | ||||||||
Energy - 0.55% | ||||||||
Apache Corp. | 11,750 | $ | 826 | |||||
FINANCIALS- 0.38% | ||||||||
Diversified Financials - 0.38% | ||||||||
AMG Capital Trust I | 4,150 | 204 | ||||||
Vale Capital II | 4,000 | 374 | ||||||
Total Preferred Stocks (Cost $1,619) | 2,123 | |||||||
Par Amount | Value | |||||||
($000) | ($000) | |||||||
CORPORATE OBLIGATIONS - 33.54% | ||||||||
Finance - 15.73% | ||||||||
AEGON Funding Co., LLC, 5.75%, Due 12/15/2020 | 250 | 265 | ||||||
American Express Credit Corp., 2.75%, Due 9/15/2015 | 125 | 125 | ||||||
American International Group, Inc., 6.40%, Due 12/15/2020 | 575 | 629 | ||||||
ANZ National Int’l Ltd/London, 2.375%, Due 12/21/2012C | 300 | 305 | ||||||
Bank of America Corp., | ||||||||
7.80%, Due 9/15/2016 | 600 | 692 | ||||||
7.625%, Due 6/1/2019 | 875 | 1,032 | ||||||
Bank One Corp., 4.90%, Due 4/30/2015 | 250 | 266 | ||||||
Barclays Bank plc, | ||||||||
3.90%, Due 4/7/2015 | 290 | 304 | ||||||
6.75%, Due 5/22/2019 | 300 | 343 | ||||||
BNP Paribas, 3.60%, Due 2/23/2016 | 280 | 285 | ||||||
Citigroup, Inc., | ||||||||
1.235%, Due 4/1/2014D | 300 | 300 | ||||||
0.591%, Due 11/5/2014D | 300 | 292 | ||||||
6.125%, Due 11/21/2017 | 275 | 305 | ||||||
8.50%, Due 5/22/2019 | 750 | 934 | ||||||
CME Group, Inc., 5.40%, Due 8/1/2013 | 230 | 251 | ||||||
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, 4.20%, Due 5/13/2014C | 200 | 214 | ||||||
Credit Suisse/New York NY, 5.30%, Due 8/13/2019 | 250 | 268 | ||||||
Danske Bank A/S, 1.331%, Due 4/14/2014C D | 600 | 600 | ||||||
Deutsche Bank AG/London, 3.875%, Due 8/18/2014 | 275 | 289 | ||||||
Fifth Third Bancorp, 3.625%, Due 1/25/2016 | 275 | 279 | ||||||
General Electric Capital Corp., | ||||||||
0.493%, Due 1/8/2016D | 1,033 | 1,001 | ||||||
5.625%, Due 5/1/2018 | 250 | 274 | ||||||
6.00%, Due 8/7/2019 | 300 | 334 | ||||||
5.50%, Due 1/8/2020 | 350 | 376 | ||||||
HSBC Finance Corp., 0.528%, Due 1/15/2014D | 850 | 838 | ||||||
ING Bank N.V., 5.125%, Due 5/1/2015C | 300 | 310 | ||||||
Janus Capital Group, Inc., 6.70%, Due 6/15/2017D | 125 | 137 | ||||||
JPMorgan Chase & Co., | ||||||||
3.70%, Due 1/20/2015 | 500 | 519 | ||||||
6.00%, Due 1/15/2018 | 175 | 195 | ||||||
5.50%, Due 10/15/2040 | 250 | 250 | ||||||
JPMorgan Chase Bank NA, 0.640%, Due 6/13/2016C D | 375 | 360 | ||||||
Leucadia National Corp., | ||||||||
8.125%, Due 9/15/2015 | 100 | 111 | ||||||
7.125%, Due 3/15/2017 | 192 | 202 | ||||||
Lincoln National Corp., 4.75%, Due 2/15/2014 | 105 | 111 | ||||||
Lloyds TSB Bank plc, 4.375%, Due 1/12/2015C | 300 | 310 | ||||||
Mellon Funding Corp., 0.463%, Due 5/15/2014D | 250 | 249 | ||||||
Merrill Lynch & Co, Inc., 6.11%, Due 1/29/2037 | 275 | 269 | ||||||
MetLife Institutional Funding II, 1.201%, Due 4/4/2014C D | 800 | 802 | ||||||
MetLife, Inc., 6.375%, Due 6/15/2034 | 250 | 277 | ||||||
Monumental Global Funding III, 0.478%, Due 1/15/2014C D | 300 | 290 | ||||||
Morgan Stanley, | ||||||||
0.758%, Due 10/15/2015D | 900 | 867 | ||||||
7.30%, Due 5/13/2019 | 280 | 321 |
See accompanying notes
22
Table of Contents
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
5.625%, Due 9/23/2019 | $ | 250 | $ | 260 | ||||
National Australia Bank Ltd., 4.375%, Due 12/10/2020C | 250 | 244 | ||||||
Nationwide Building Society, 5.50%, Due 7/18/2012C | 450 | 472 | ||||||
Nordea Bank AB, | ||||||||
2.50%, Due 11/13/2012C | 250 | 255 | ||||||
4.875%, Due 1/27/2020C | 250 | 259 | ||||||
PNC Funding Corp., 4.375%, Due 8/11/2020 | 260 | 262 | ||||||
Pricoa Global Funding I, 5.40%, Due 10/18/2012C | 150 | 159 | ||||||
Prudential Financial, Inc., 7.375%, Due 6/15/2019 | 250 | 298 | ||||||
Societe Generale, | ||||||||
2.20%, Due 9/14/2013C | 250 | 252 | ||||||
1.326%, Due 4/11/2014C D | 1,200 | 1,202 | ||||||
The Bear Stearns Cos., Inc., 7.25%, Due 2/1/2018 | 500 | 587 | ||||||
The Goldman Sachs Group, Inc., | ||||||||
5.35%, Due 1/15/2016 | 475 | 515 | ||||||
6.25%, Due 9/1/2017 | 550 | 612 | ||||||
6.00%, Due 6/15/2020 | 135 | 146 | ||||||
The Travelers Cos Inc, 3.90%, Due 11/1/2020 | 130 | 126 | ||||||
UBS AG/Stamford CT, 5.875%, Due 12/20/2017 | 275 | 307 | ||||||
Wachovia Corp., | ||||||||
0.648%, Due 10/15/2016D | 600 | 568 | ||||||
5.75%, Due 2/1/2018 | 475 | 530 | ||||||
Wells Fargo & Co., 5.625%, Due 12/11/2017 | 275 | 307 | ||||||
23,742 | ||||||||
Industrials - 15.71% | ||||||||
Advanced Micro Devices, Inc., | ||||||||
8.125%, Due 12/15/2017 | 130 | 137 | ||||||
7.75%, Due 8/1/2020 | 175 | 182 | ||||||
America Movil SAB de CV, 6.375%, Due 3/1/2035 | 275 | 299 | ||||||
American Axle & Manufacturing, Inc., 7.875%, Due 3/1/2017 | 272 | 279 | ||||||
American Honda Finance Corp., | ||||||||
4.625%, Due 4/2/2013C | 325 | 345 | ||||||
3.875%, Due 9/21/2020C | 125 | 122 | ||||||
Anheuser-Busch InBev Worldwide, Inc., | ||||||||
5.00%, Due 4/15/2020 | 290 | 311 | ||||||
8.00%, Due 11/15/2039 | 100 | 137 | ||||||
Apache Corp., 5.10%, Due 9/1/2040 | 130 | 125 | ||||||
AT&T, Inc., | ||||||||
5.625%, Due 6/15/2016 | 200 | 225 | ||||||
5.50%, Due 2/1/2018 | 400 | 441 | ||||||
6.80%, Due 5/15/2036 | 125 | 138 | ||||||
6.40%, Due 5/15/2038 | 125 | 133 | ||||||
Bio-Rad Laboratories, Inc., 8.00%, Due 9/15/2016 | 275 | 306 | ||||||
BP Capital Markets plc, 3.20%, Due 3/11/2016 | 280 | 282 | ||||||
Burlington Northern Santa Fe LLC, | ||||||||
5.75%, Due 3/15/2018 | 325 | 367 | ||||||
5.75%, Due 5/1/2040 | 140 | 144 | ||||||
Calfrac Holdings LP, 7.50%, Due 12/1/2020C | 375 | 393 | ||||||
Canadian National Railway Co., 5.55%, Due 5/15/2018 | 250 | 280 | ||||||
Canadian Natural Resources Ltd., 6.25%, Due 3/15/2038 | 275 | 303 | ||||||
Caterpillar Financial Services Corp., | ||||||||
1.90%, Due 12/17/2012 | 100 | 102 | ||||||
4.25%, Due 2/8/2013 | 250 | 265 | ||||||
2.75%, Due 6/24/2015 | 280 | 288 | ||||||
Cellco Partnership / Verizon Wireless Capital LLC, 3.75%, Due 5/20/2011 | 270 | 270 | ||||||
Coca-Cola Refreshments USA, Inc., 7.375%, Due 3/3/2014 | 150 | 175 | ||||||
Comcast Cable Communications Holdings, Inc., 8.375%, Due 3/15/2013 | 109 | 123 | ||||||
Comcast Corp., 6.55%, Due 7/1/2039 | 300 | 324 | ||||||
Comstock Resources, Inc., 8.375%, Due 10/15/2017 | 300 | 317 | ||||||
Concho Resources Inc/Midland TX, 8.625%, Due 10/1/2017 | 275 | 304 | ||||||
ConocoPhillips, | ||||||||
4.60%, Due 1/15/2015 | 200 | 220 |
See accompanying notes
23
Table of Contents
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
5.20%, Due 5/15/2018 | $ | 325 | $ | 362 | ||||
CSX Corp., 5.50%, Due 4/15/2041 | 250 | 246 | ||||||
CVS Caremark Corp., 3.25%, Due 5/18/2015 | 140 | 144 | ||||||
Daimler Finance North America LLC, | ||||||||
5.75%, Due 9/8/2011 | 250 | 254 | ||||||
3.00%, Due 3/28/2016C | 150 | 151 | ||||||
DISH DBS Corp., 7.875%, Due 9/1/2019 | 300 | 325 | ||||||
EOG Resources, Inc., 2.50%, Due 2/1/2016 | 250 | 247 | ||||||
Exide Technologies, 8.625%, Due 2/1/2018C | 350 | 375 | ||||||
France Telecom S.A., 2.125%, Due 9/16/2015 | 125 | 124 | ||||||
GlaxoSmithKline Capital, Inc., 5.65%, Due 5/15/2018 | 125 | 142 | ||||||
Hanesbrands, Inc., 8.00%, Due 12/15/2016 | 300 | 326 | ||||||
Hewlett-Packard Co., 2.20%, Due 12/1/2015 | 250 | 248 | ||||||
Holly Corp., 9.875%, Due 6/15/2017 | 140 | 158 | ||||||
Home Depot, Inc., 4.40%, Due 4/1/2021 | 300 | 302 | ||||||
iGate Corp., 9.00%, Due 5/1/2016C | 300 | 308 | ||||||
International Business Machines Corp., 7.625%, Due 10/15/2018 | 150 | 190 | ||||||
Jabil Circuit, Inc., 8.25%, Due 3/15/2018 | 325 | 373 | ||||||
Jarden Corp., | ||||||||
7.50%, Due 5/1/2017 | 30 | 32 | ||||||
7.50%, Due 1/15/2020 | 120 | 128 | ||||||
Johnson Controls, Inc., 5.00%, Due 3/30/2020 | 300 | 318 | ||||||
Kellogg Co., 4.25%, Due 3/6/2013 | 250 | 264 | ||||||
Liberty Media LLC, 8.25%, Due 2/1/2030 | 450 | 437 | ||||||
McKesson Corp., 3.25%, Due 3/1/2016 | 140 | 143 | ||||||
MEMC Electronic Materials, Inc., 7.75%, Due 4/1/2019C | 358 | 372 | ||||||
Norfolk Southern Corp., 5.75%, Due 4/1/2018 | 325 | 369 | ||||||
Northrop Grumman Corp., 5.05%, Due 8/1/2019 | 150 | 161 | ||||||
Oshkosh Corp., | ||||||||
8.25%, Due 3/1/2017 | 50 | 55 | ||||||
8.50%, Due 3/1/2020 | 125 | 139 | ||||||
Perry Ellis International, Inc., 7.875%, Due 4/1/2019 | 210 | 219 | ||||||
Petrobras International Finance Co. — Pifco, 3.875%, Due 1/27/2016 | 200 | 203 | ||||||
Petroleos Mexicanos, 6.00%, Due 3/5/2020 | 300 | 321 | ||||||
Quest Diagnostics, Inc., 4.75%, Due 1/30/2020 | 125 | 128 | ||||||
Qwest Capital Funding, Inc., 7.75%, Due 2/15/2031 | 250 | 267 | ||||||
Royal Caribbean Cruises Ltd., 7.50%, Due 10/15/2027 | 500 | 500 | ||||||
Seagate HDD Cayman, 6.875%, Due 5/1/2020C | 350 | 355 | ||||||
Service Corp International, 7.00%, Due 5/15/2019 | 225 | 239 | ||||||
SESI LLC, 6.875%, Due 6/1/2014 | 435 | 444 | ||||||
Shell International Finance BV, 3.10%, Due 6/28/2015 | 280 | 290 | ||||||
Simon Property Group LP, 10.35%, Due 4/1/2019 | 300 | 417 | ||||||
Spirit Aerosystems, Inc., 7.50%, Due 10/1/2017 | 450 | 489 | ||||||
Swift Energy Co., 7.125%, Due 6/1/2017 | 375 | 384 | ||||||
Telefonica Emisiones SAU, 6.421%, Due 6/20/2016 | 300 | 338 | ||||||
Terex Corp., 8.00%, Due 11/15/2017 | 125 | 132 | ||||||
The Boeing Co, 1.875%, Due 11/20/2012 | 250 | 255 | ||||||
Thomson Reuters Corp., 4.70%, Due 10/15/2019 | 125 | 133 | ||||||
Time Warner Cable, Inc., 5.85%, Due 5/1/2017 | 300 | 334 | ||||||
Time Warner, Inc., | ||||||||
4.875%, Due 3/15/2020 | 150 | 155 | ||||||
4.75%, Due 3/29/2021 | 325 | 331 | ||||||
Triumph Group, Inc., 8.00%, Due 11/15/2017 | 300 | 320 | ||||||
Tyco International Finance S.A., 3.75%, Due 1/15/2018 | 275 | 276 | ||||||
Union Pacific Corp., 7.875%, Due 1/15/2019 | 300 | 380 | ||||||
United Technologies Corp., 6.125%, Due 7/15/2038 | 165 | 186 | ||||||
UnitedHealth Group, Inc., 3.875%, Due 10/15/2020 | 250 | 243 | ||||||
Verizon Communications, Inc., | ||||||||
5.50%, Due 4/1/2017 | 250 | 281 | ||||||
4.60%, Due 4/1/2021 | 340 | 347 | ||||||
6.90%, Due 4/15/2038 | 325 | 372 | ||||||
Vodafone Group plc, 6.15%, Due 2/27/2037 | 275 | 300 | ||||||
Wal-Mart Stores, Inc., 7.55%, Due 2/15/2030 | 250 | 322 |
See accompanying notes
24
Table of Contents
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
WESCO Distribution, Inc., 7.50%, Due 10/15/2017 | $ | 450 | $ | 466 | ||||
Xerox Corp., | ||||||||
5.65%, Due 5/15/2013 | 75 | 81 | ||||||
8.25%, Due 5/15/2014 | 150 | 176 | ||||||
23,714 | ||||||||
Other Government - 0.38% | ||||||||
Province of Ontario Canada, | ||||||||
4.10%, Due 6/16/2014 | 300 | 324 | ||||||
3.15%, Due 12/15/2017 | 250 | 253 | ||||||
577 | ||||||||
Utilities - 1.72% | ||||||||
Commonwealth Edison Co., 4.00%, Due 8/1/2020 | 135 | 132 | ||||||
Consolidated Edison Co of New York, Inc., 5.50%, Due 12/1/2039 | 300 | 308 | ||||||
Duke Energy Carolinas LLC, 5.10%, Due 4/15/2018 | 250 | 275 | ||||||
EDF S.A., 4.60%, Due 1/27/2020C | 300 | 310 | ||||||
FirstEnergy Solutions Corp., 4.80%, Due 2/15/2015 | 150 | 159 | ||||||
Midamerican Energy Holdings Co., 6.125%, Due 4/1/2036 | 275 | 295 | ||||||
Pacific Gas & Electric Co., | ||||||||
6.25%, Due 12/1/2013 | 175 | 194 | ||||||
3.50%, Due 10/1/2020 | 250 | 235 | ||||||
Progress Energy, Inc., 4.875%, Due 12/1/2019 | 250 | 264 | ||||||
TransCanada PipeLines Ltd., 6.10%, Due 6/1/2040 | 140 | 150 | ||||||
Virginia Electric and Power Co., 5.40%, Due 4/30/2018 | 250 | 277 | ||||||
2,599 | ||||||||
Total Corporate Obligations (Cost $47,892) | 50,632 | |||||||
CONVERTIBLE OBLIGATIONS - 12.93% | ||||||||
Basic Materials - 0.84% | ||||||||
Goldcorp, Inc., 2.00%, Due 8/1/2014 | 225 | 300 | ||||||
Newmont Mining Corp., | ||||||||
3.00%, Due 2/15/2012 | 50 | 65 | ||||||
1.25%, Due 7/15/2014 | 425 | 585 | ||||||
1.625%, Due 7/15/2017 | 220 | 311 | ||||||
1,261 | ||||||||
Communications - 1.74% | ||||||||
Anixter International, Inc., 1.00%, Due 2/15/2013 | 610 | 805 | ||||||
Omnicom Group, Inc., 0.000%, Due 7/1/2038 | 400 | 446 | ||||||
priceline.com, Inc., 1.25%, Due 3/15/2015C | 300 | 561 | ||||||
Symantec Corp., 1.00%, Due 6/15/2013 | 660 | 814 | ||||||
2,626 | ||||||||
Convertible Obligations - 1.82% | ||||||||
Chesapeake Energy Corp., 2.75%, Due 11/15/2035 | 700 | 815 | ||||||
General Cable Corp., 0.875%, Due 11/15/2013 | 400 | 462 | ||||||
Illumina, Inc., 0.25%, Due 3/15/2016C | 775 | 798 | ||||||
Rovi Corp., 2.625%, Due 2/15/2040 | 99 | 122 | ||||||
SYNNEX Corp., 4.00%, Due 5/15/2018 | 275 | 359 | ||||||
Xilinx, Inc., 3.125%, Due 3/15/2037 | 150 | 184 | ||||||
2,740 | ||||||||
Energy - 0.12% | ||||||||
SESI LLC, 1.50%, Due 12/15/2026 | 175 | 182 | ||||||
Finance - 0.56% | ||||||||
Janus Capital Group, Inc., 3.25%, Due 7/15/2014 | 340 | 408 | ||||||
Leucadia National Corp., 3.75%, Due 4/15/2014 | 250 | 444 | ||||||
852 | ||||||||
Health Care - 0.23% | ||||||||
LifePoint Hospitals, Inc., 3.50%, Due 5/15/2014 | 325 | 350 | ||||||
Industrials - 2.41% | ||||||||
Alpha Natural Resources, Inc., 2.375%, Due 4/15/2015 | 300 | 398 | ||||||
Danaher Corp., 0.01%, Due 1/22/2021 | 370 | 591 | ||||||
Hologic, Inc., 2.00%, Due 12/15/2037D | 660 | 796 | ||||||
Molson Coors Brewing Co., 2.50%, Due 7/30/2013 | 150 | 172 | ||||||
ON Semiconductor Corp., 2.625%, Due 12/15/2026 | 300 | 368 |
See accompanying notes
25
Table of Contents
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
Stanley Black & Decker, Inc., 0.01%, Due 5/17/2012D | $ | 275 | $ | 332 | ||||
The Interpublic Group of Cos Inc, | ||||||||
4.25%, Due 3/15/2023 | 425 | 478 | ||||||
4.75%, Due 3/15/2023 | 90 | 111 | ||||||
Tyson Foods, Inc., 3.25%, Due 10/15/2013 | 300 | 398 | ||||||
3,644 | ||||||||
Pharmaceuticals - 1.63% | ||||||||
Endo Pharmaceuticals Holdings, Inc., 1.75%, Due 4/15/2015 | 250 | 358 | ||||||
Gilead Sciences, Inc., 1.625%, Due 5/1/2016C | 625 | 696 | ||||||
Life Technologies Corp., 1.50%, Due 2/15/2024 | 246 | 289 | ||||||
Mylan, Inc., 1.25%, Due 3/15/2012 | 705 | 806 | ||||||
Salix Pharmaceuticals Ltd., 2.75%, Due 5/15/2015 | 275 | 314 | ||||||
2,463 | ||||||||
Technology - 3.58% | ||||||||
CACI International, Inc., 2.125%, Due 5/1/2014 | 230 | 288 | ||||||
EMC Corp/Massachusetts, 1.75%, Due 12/1/2013 | 900 | 1,623 | ||||||
Intel Corp., 3.25%, Due 8/1/2039C | 500 | 636 | ||||||
Linear Technology Corp., 3.00%, Due 5/1/2027 | 295 | 319 | ||||||
Microsoft Corp., %, Due 6/15/2013C | 300 | 313 | ||||||
Navistar International Corp., 3.00%, Due 10/15/2014 | 300 | 456 | ||||||
SanDisk Corp., | ||||||||
1.00%, Due 5/15/2013 | 375 | 368 | ||||||
1.50%, Due 8/15/2017 | 625 | 724 | ||||||
Xilinx, Inc., 2.625%, Due 6/15/2017C | 525 | 681 | ||||||
5,408 | ||||||||
Total Convertible Obligations (Cost $16,411) | 19,526 | |||||||
ASSET-BACKED SECURITIES - 3.11% | ||||||||
American Express Credit Account Master Trust, 5.35%, Due 1/15/2014, 2006-2 A | 1,050 | 1,056 | ||||||
BMW Floorplan Master Owner Trust, 1.369%, Due 9/15/2014, 2009-1A AC D | 250 | 252 | ||||||
Capital One Multi-Asset Execution Trust, 5.15%, Due 6/15/2014, 2006-A10 A10 | 800 | 810 | ||||||
Citibank Credit Card Issuance Trust, 1.769%, Due 5/15/2014, 2009-A2 A2D | 600 | 609 | ||||||
Discover Card Master Trust, 1.519%, Due 2/17/2015, 2009-A2 AD | 200 | 203 | ||||||
Ford Credit Auto Lease Trust, 1.04%, Due 3/15/2013, 2010-A A2C | 215 | 216 | ||||||
Ford Credit Floorplan Master Owner Trust, 1.769%, Due 9/15/2014, 2009-2 AD | 250 | 254 | ||||||
Harley-Davidson Motorcycle Trust, 1.87%, Due 2/15/2014, 2009-4 A3 | 300 | 302 | ||||||
Nissan Master Owner Trust Receivables, 1.369%, Due 1/15/2015, 2010-AA AC D | 600 | 607 | ||||||
Volkswagen Auto Loan Enhanced Trust, | ||||||||
0.66%, Due 5/21/2012, 2010-1 A2 | 69 | 69 | ||||||
6.24%, Due 7/20/2015, 2008-2 A4A | 300 | 318 | ||||||
Total Asset-Backed Securities (Cost $4,645) | 4,696 | |||||||
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS - 3.73% | ||||||||
Banc of America Commercial Mortgage, Inc., | ||||||||
5.317%, Due 9/10/2047, 2006-5 A2 | 256 | 260 | ||||||
5.634%, Due 4/10/2049, 2007-2 A2 | 456 | 465 | ||||||
GS Mortgage Securities Corp II, | ||||||||
4.607%, Due 7/10/2039, 2005-GG4 A3 | 270 | 275 | ||||||
3.849%, Due 12/10/2043, 2010-C2C | 645 | 666 | ||||||
3.645%, Due 3/10/2044, 2011-GC3 A2 | 750 | 765 | ||||||
JP Morgan Chase Commercial Mortgage Securities Corp., | ||||||||
4.678%, Due 7/15/2042, 2005-LDP2 A3A | 242 | 250 | ||||||
3.853%, Due 6/15/2043, 2010-C1 A1C | 540 | 561 | ||||||
4.388%, Due 2/16/2046, 2011-C3A A3C | 650 | 669 | ||||||
5.932%, Due 2/12/2049, 2007-CB19 A4 | 400 | 441 | ||||||
5.629%, Due 2/12/2051, 2007-CB20 A2 | 521 | 539 | ||||||
LB-UBS Commercial Mortgage Trust, 5.424%, Due 2/15/2040, 2007-C1 A4 | 450 | 489 | ||||||
Wachovia Bank Commercial Mortgage Trust, 5.927%, Due 6/15/2049, 2007-C32 A2 | 245 | 256 | ||||||
Total Non-Agency Mortgage-Backed Obligations (Cost $5,478) | 5,636 |
See accompanying notes
26
Table of Contents
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 11.60% | ||||||||
Federal Home Loan Mortgage Corporation - 5.34% | ||||||||
5.00%, Due 2/1/2021 | $ | 469 | $ | 504 | ||||
4.50%, Due 4/1/2021 | 487 | 518 | ||||||
5.00%, Due 9/1/2035 | 1,353 | 1,433 | ||||||
5.50%, Due 4/1/2037 | 399 | 429 | ||||||
5.00%, Due 3/1/2038 | 779 | 822 | ||||||
5.50%, Due 5/1/2038 | 482 | 519 | ||||||
4.00%, Due 1/1/2041 | 1,789 | 1,779 | ||||||
4.50%, Due 2/1/2041 | 1,993 | 2,051 | ||||||
8,055 | ||||||||
Federal National Mortgage Association - 5.01% | ||||||||
3.50%, Due 1/1/2026 | 491 | 498 | ||||||
6.50%, Due 7/1/2032 | 229 | 259 | ||||||
5.50%, Due 6/1/2033 | 471 | 511 | ||||||
4.50%, Due 9/1/2034 | 271 | 281 | ||||||
5.50%, Due 12/1/2035 | 541 | 585 | ||||||
5.00%, Due 2/1/2036 | 434 | 460 | ||||||
5.50%, Due 4/1/2036 | 749 | 811 | ||||||
5.50%, Due 2/1/2037 | 544 | 587 | ||||||
6.00%, Due 9/1/2037 | 339 | 371 | ||||||
6.00%, Due 1/1/2038 | 497 | 544 | ||||||
4.50%, Due 1/1/2040 | 1,490 | 1,535 | ||||||
4.00%, Due 9/1/2040 | 1,131 | 1,128 | ||||||
7,570 | ||||||||
Government National Mortgage Association - 1.25% | ||||||||
6.00%, Due 2/15/2033 | 521 | 582 | ||||||
5.50%, Due 4/15/2033 | 701 | 767 | ||||||
5.00%, Due 5/15/2033 | 501 | 541 | ||||||
1,890 | ||||||||
Total U.S. Agency Mortgage-Backed Obligations (Cost $16,594) | 17,515 | |||||||
U.S. AGENCY OBLIGATIONS - 0.76% | ||||||||
4.201%, Due 8/16/2026 2006-9 A | 64 | 64 | ||||||
1.692%, Due 11/16/2035 2009-148 A | 310 | 310 | ||||||
2.989%, Due 3/16/2039 2010-71 AC | 753 | 769 | ||||||
Total U.S. Agency Obligations (Cost $1,133) | 1,143 | |||||||
U.S. TREASURY OBLIGATIONS - 19.32% | ||||||||
U.S. Treasury Bonds - 4.32% | ||||||||
7.875%, Due 2/15/2021 | 300 | 417 | ||||||
6.25%, Due 8/15/2023 | 1,500 | 1,884 | ||||||
6.875%, Due 8/15/2025 | 250 | 333 | ||||||
5.25%, Due 11/15/2028 | 1,050 | 1,201 | ||||||
4.75%, Due 2/15/2037 | 420 | 446 | ||||||
4.50%, Due 8/15/2039 | 2,210 | 2,244 | ||||||
6,525 | ||||||||
U.S. Treasury Notes - 15.00% | ||||||||
2.625%, Due 7/31/2014 | 7,000 | 7,329 | ||||||
2.25%, Due 1/31/2015 | 1,400 | 1,443 | ||||||
2.50%, Due 4/30/2015 | 1,000 | 1,039 | ||||||
3.00%, Due 9/30/2016 | 800 | 836 | ||||||
3.125%, Due 10/31/2016 | 2,200 | 2,309 | ||||||
3.00%, Due 2/28/2017 | 2,000 | 2,076 | ||||||
4.25%, Due 8/15/2015 | 1,200 | 1,330 | ||||||
3.75%, Due 11/15/2018 | 1,050 | 1,119 | ||||||
3.625%, Due 2/15/2020 | 1,325 | 1,378 | ||||||
2.625%, Due 11/15/2020 | 4,000 | 3,784 | ||||||
22,643 | ||||||||
Total U.S. Treasury Obligations (Cost $28,858) | 29,168 | |||||||
See accompanying notes
27
Table of Contents
American Beacon Retirement Income and Appreciation Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Shares | ||||||||
SHORT-TERM INVESTMENTS - 6.07% | ||||||||
JPMorgan U.S. Government Money Market Fund | 2,173,145 | $ | 2,173 | |||||
United States Treasury Bill | 7,000,000 | 6,995 | ||||||
Total Short-Term Investments (Cost 9,168) | 9,168 | |||||||
TOTAL INVESTMENTS - 99.05% (Cost $140,406) | 149,532 | |||||||
OTHER ASSETS, NET OF LIABILITIES - 0.95% | 1,433 | |||||||
TOTAL NET ASSETS - 100.00% | $ | 150,965 | ||||||
Percentages are stated as a percent of net assets.
A | Non-income producing security. | |
B | ADR - American Depositary Receipt. | |
C | 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 $15,420 or 10.21% of net assets. The Fund has no right to demand registration of these securities. | |
D | 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
Table of Contents
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
CORPORATE OBLIGATIONS - 43.87% | ||||||||
Finance - 19.66% | ||||||||
AEGON Funding Co., LLC, 5.75%, Due 12/15/2020 | $ | 400 | $ | 425 | ||||
Aflac, Inc., 8.50%, Due 5/15/2019 | 240 | 294 | ||||||
American Express Co., 8.15%, Due 3/19/2038 | 325 | 444 | ||||||
American Express Credit Corp., | ||||||||
5.125%, Due 8/25/2014 | 910 | 994 | ||||||
2.75%, Due 9/15/2015 | 225 | 224 | ||||||
American International Group, Inc., 6.40%, Due 12/15/2020 | 800 | 875 | ||||||
ANZ National Int’l Ltd/London, 2.375%, Due 12/21/2012A | 350 | 355 | ||||||
Bank of America Corp., | ||||||||
4.50%, Due 4/1/2015 | 490 | 516 | ||||||
7.80%, Due 9/15/2016 | 700 | 807 | ||||||
7.625%, Due 6/1/2019 | 1,200 | 1,415 | ||||||
Bank One Corp., 4.90%, Due 4/30/2015 | 500 | 533 | ||||||
Barclays Bank plc, | ||||||||
3.90%, Due 4/7/2015 | 380 | 399 | ||||||
6.75%, Due 5/22/2019 | 350 | 400 | ||||||
BNP Paribas, 3.60%, Due 2/23/2016 | 400 | 407 | ||||||
Canadian Imperial Bank of Commerce/Canada, 1.45%, Due 9/13/2013 | 745 | 747 | ||||||
Citigroup, Inc., | ||||||||
1.235%, Due 4/1/2014B | 400 | 400 | ||||||
0.591%, Due 11/5/2014B | 380 | 370 | ||||||
6.01%, Due 1/15/2015 | 605 | 671 | ||||||
6.125%, Due 11/21/2017 | 755 | 837 | ||||||
8.50%, Due 5/22/2019 | 1,450 | 1,806 | ||||||
CME Group, Inc., | ||||||||
5.40%, Due 8/1/2013 | 260 | 284 | ||||||
5.75%, Due 2/15/2014 | 650 | 723 | ||||||
CNA Financial Corp., 7.35%, Due 11/15/2019 | 210 | 243 | ||||||
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, | ||||||||
4.20%, Due 5/13/2014A | 600 | 642 | ||||||
2.125%, Due 10/13/2015 | 510 | 500 | ||||||
Covidien International Finance S.A., 2.80%, Due 6/15/2015 | 500 | 507 | ||||||
Credit Suisse/New York NY, 5.30%, Due 8/13/2019 | 425 | 455 | ||||||
Danske Bank A/S, 1.331%, Due 4/14/2014A B | 780 | 780 | ||||||
Deutsche Bank AG/London, 3.875%, Due 8/18/2014 | 400 | 421 | ||||||
Fifth Third Bancorp, 3.625%, Due 1/25/2016 | 400 | 406 | ||||||
General Electric Capital Corp., | ||||||||
0.493%, Due 1/8/2016B | 1,300 | 1,258 | ||||||
5.40%, Due 2/15/2017 | 480 | 527 | ||||||
5.625%, Due 5/1/2018 | 870 | 953 | ||||||
6.00%, Due 8/7/2019 | 350 | 390 | ||||||
5.50%, Due 1/8/2020 | 800 | 860 | ||||||
5.30%, Due 2/11/2021 | 240 | 249 | ||||||
5.875%, Due 1/14/2038 | 745 | 753 | ||||||
HCP, Inc., 5.375%, Due 2/1/2021 | 500 | 520 | ||||||
HSBC Finance Corp., 0.528%, Due 1/15/2014B | 1,100 | 1,084 | ||||||
ING Bank N.V., 5.125%, Due 5/1/2015A | 250 | 259 | ||||||
JPMorgan Chase & Co., | ||||||||
3.70%, Due 1/20/2015 | 1,730 | 1,795 | ||||||
6.00%, Due 1/15/2018 | 450 | 501 | ||||||
5.50%, Due 10/15/2040 | 425 | 425 | ||||||
JPMorgan Chase Bank NA, 0.640%, Due 6/13/2016A B | 480 | 461 | ||||||
KeyCorp, 5.10%, Due 3/24/2021 | 245 | 251 | ||||||
Lincoln National Corp., 4.75%, Due 2/15/2014 | 50 | 53 | ||||||
Lloyds TSB Bank plc, | ||||||||
4.375%, Due 1/12/2015A | 375 | 388 | ||||||
6.375%, Due 1/21/2021 | 260 | 279 | ||||||
Mellon Funding Corp., 0.463%, Due 5/15/2014B | 500 | 497 | ||||||
Merrill Lynch & Co, Inc., | ||||||||
6.40%, Due 8/28/2017 | 1,015 | 1,131 |
See accompanying notes
29
Table of Contents
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
6.50%, Due 7/15/2018 | $ | 520 | $ | 570 | ||||
6.11%, Due 1/29/2037 | 360 | 353 | ||||||
MetLife Institutional Funing II, 1.201%, Due 4/4/2014A B | 600 | 602 | ||||||
MetLife, Inc., | ||||||||
5.00%, Due 11/24/2013 | 620 | 670 | ||||||
6.375%, Due 6/15/2034 | 500 | 554 | ||||||
Monumental Global Funding III, 0.478%, Due 1/15/2014A B | 375 | 362 | ||||||
Morgan Stanley, | ||||||||
0.758%, Due 10/15/2015B | 1,180 | 1,137 | ||||||
7.30%, Due 5/13/2019 | 370 | 424 | ||||||
5.625%, Due 9/23/2019 | 600 | 624 | ||||||
National Australia Bank Ltd., 4.375%, Due 12/10/2020A | 425 | 414 | ||||||
National Rural Utilities Cooperative Finance Corp., 1.125%, Due 11/1/2013 | 485 | 484 | ||||||
Nationwide Building Society, 5.50%, Due 7/18/2012A | 550 | 577 | ||||||
Nordea Bank AB, | ||||||||
2.50%, Due 11/13/2012A | 400 | 408 | ||||||
4.875%, Due 1/27/2020A | 450 | 465 | ||||||
PNC Funding Corp., | ||||||||
4.25%, Due 9/21/2015 | 1,010 | 1,074 | ||||||
4.375%, Due 8/11/2020 | 410 | 414 | ||||||
Pricoa Global Funding I, 5.40%, Due 10/18/2012A | 175 | 185 | ||||||
Prudential Financial, Inc., | ||||||||
5.10%, Due 9/20/2014 | 475 | 517 | ||||||
7.375%, Due 6/15/2019 | 450 | 536 | ||||||
Societe Generale, | ||||||||
2.20%, Due 9/14/2013A | 450 | 453 | ||||||
1.326%, Due 4/11/2014A B | 900 | 901 | ||||||
State Street Corp., | ||||||||
4.30%, Due 5/30/2014 | 360 | 388 | ||||||
2.875%, Due 3/7/2016 | 705 | 711 | ||||||
SunTrust Banks, Inc., 3.60%, Due 4/15/2016 | 245 | 248 | ||||||
The Bank of New York Mellon Corp, | ||||||||
4.95%, Due 11/1/2012 | — | — | ||||||
1.50%, Due 1/31/2014 | 475 | 477 | ||||||
4.30%, Due 5/15/2014 | 470 | 509 | ||||||
The Bear Stearns Cos., Inc., 7.25%, Due 2/1/2018 | 1,970 | 2,314 | ||||||
The Goldman Sachs Group, Inc., | ||||||||
5.35%, Due 1/15/2016 | 800 | 868 | ||||||
6.25%, Due 9/1/2017 | 800 | 891 | ||||||
5.95%, Due 1/18/2018 | 760 | 832 | ||||||
6.00%, Due 6/15/2020 | 490 | 530 | ||||||
6.75%, Due 10/1/2037 | 345 | 358 | ||||||
The Travelers Cos Inc, 3.90%, Due 11/1/2020 | 210 | 203 | ||||||
Travelers Property Casualty Corp., 5.00%, Due 3/15/2013 | 805 | 861 | ||||||
UBS AG/Stamford CT, 5.875%, Due 12/20/2017 | 400 | 447 | ||||||
US Bancorp, 1.375%, Due 9/13/2013 | 850 | 853 | ||||||
Wachovia Corp., | ||||||||
0.648%, Due 10/15/2016B | 750 | 710 | ||||||
5.75%, Due 2/1/2018 | 750 | 837 | ||||||
Wells Fargo & Co., | ||||||||
5.625%, Due 12/11/2017 | 475 | 530 | ||||||
4.60%, Due 4/1/2021 | 470 | 475 | ||||||
Westpac Banking Corp., 2.25%, Due 11/19/2012 | 375 | 382 | ||||||
Willis North America, Inc., 6.20%, Due 3/28/2017 | 280 | 305 | ||||||
55,967 | ||||||||
Industrials - 18.95% | ||||||||
Alltel Corp., 7.00%, Due 7/1/2012 | 215 | 230 | ||||||
Altria Group, Inc., 9.70%, Due 11/10/2018 | 375 | 499 | ||||||
America Movil SAB de CV, 6.375%, Due 3/1/2035 | 375 | 408 | ||||||
American Honda Finance Corp., | ||||||||
4.625%, Due 4/2/2013A | 250 | 265 | ||||||
3.875%, Due 9/21/2020A | 225 | 220 |
See accompanying notes
30
Table of Contents
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
Analog Devices, Inc., 3.00%, Due 4/15/2016 | $ | 210 | $ | 213 | ||||
Anheuser-Busch InBev Worldwide, Inc., | ||||||||
3.00%, Due 10/15/2012 | 540 | 556 | ||||||
5.00%, Due 4/15/2020 | 380 | 407 | ||||||
8.00%, Due 11/15/2039 | 175 | 239 | ||||||
Apache Corp., 5.10%, Due 9/1/2040 | 200 | 192 | ||||||
AT&T, Inc., | ||||||||
5.10%, Due 9/15/2014 | 955 | 1,053 | ||||||
5.625%, Due 6/15/2016 | 400 | 451 | ||||||
5.50%, Due 2/1/2018 | 600 | 662 | ||||||
6.80%, Due 5/15/2036 | 225 | 249 | ||||||
6.40%, Due 5/15/2038 | 200 | 213 | ||||||
5.35%, Due 9/1/2040A | 283 | 265 | ||||||
Baxter International, Inc., 1.80%, Due 3/15/2013 | 270 | 274 | ||||||
Becton Dickinson and Co., 3.25%, Due 11/12/2020 | 475 | 448 | ||||||
BP Capital Markets plc, 3.20%, Due 3/11/2016 | 1,065 | 1,074 | ||||||
Burlington Northern Santa Fe LLC, | ||||||||
5.75%, Due 3/15/2018 | 600 | 677 | ||||||
7.95%, Due 8/15/2030 | 180 | 231 | ||||||
5.75%, Due 5/1/2040 | 190 | 196 | ||||||
Cameron International Corp., 6.375%, Due 7/15/2018 | 225 | 255 | ||||||
Canadian National Railway Co., 5.55%, Due 5/15/2018 | 400 | 448 | ||||||
Canadian Natural Resources Ltd., 6.25%, Due 3/15/2038 | 360 | 397 | ||||||
Caterpillar Financial Services Corp., | ||||||||
1.90%, Due 12/17/2012 | 100 | 102 | ||||||
4.25%, Due 2/8/2013 | 250 | 265 | ||||||
6.125%, Due 2/17/2014 | 750 | 847 | ||||||
2.75%, Due 6/24/2015 | 380 | 391 | ||||||
Cellco Partnership / Verizon Wireless Capital LLC, | ||||||||
3.75%, Due 5/20/2011 | 370 | 371 | ||||||
8.50%, Due 11/15/2018 | 535 | 694 | ||||||
Cisco Systems, Inc., 1.625%, Due 3/14/2014 | 705 | 709 | ||||||
Cliffs Natural Resources, Inc., 4.875%, Due 4/1/2021 | 280 | 284 | ||||||
Coca-Cola Refreshments USA, Inc., 7.375%, Due 3/3/2014 | 175 | 204 | ||||||
Comcast Cable Communications Holdings, Inc., 8.375%, Due 3/15/2013 | 128 | 144 | ||||||
Comcast Corp., | ||||||||
6.30%, Due 11/15/2017 | 465 | 535 | ||||||
5.875%, Due 2/15/2018 | 235 | 262 | ||||||
6.55%, Due 7/1/2039 | 500 | 540 | ||||||
ConocoPhillips, | ||||||||
4.60%, Due 1/15/2015 | 1,210 | 1,332 | ||||||
5.20%, Due 5/15/2018 | 600 | 669 | ||||||
Cooper US, Inc., | ||||||||
2.375%, Due 1/15/2016 | 730 | 726 | ||||||
3.875%, Due 12/15/2020 | 315 | 312 | ||||||
CSX Corp., 5.50%, Due 4/15/2041 | 425 | 419 | ||||||
CVS Caremark Corp., 3.25%, Due 5/18/2015 | 190 | 195 | ||||||
Daimler Finance North America LLC, | ||||||||
5.75%, Due 9/8/2011 | 200 | 204 | ||||||
3.00%, Due 3/28/2016A | 190 | 191 | ||||||
Dell, Inc., 3.375%, Due 6/15/2012 | 235 | 241 | ||||||
DIRECTV Holdings LLC / DIRECTV Financing Co, Inc., | ||||||||
3.55%, Due 3/15/2015 | 625 | 647 | ||||||
6.35%, Due 3/15/2040 | 145 | 151 | ||||||
Eaton Corp., 5.60%, Due 5/15/2018 | 380 | 427 | ||||||
eBay, Inc., 0.875%, Due 10/15/2013 | 335 | 333 | ||||||
EI du Pont de Nemours & Co, | ||||||||
5.875%, Due 1/15/2014 | 67 | 75 | ||||||
3.25%, Due 1/15/2015 | 660 | 690 | ||||||
Ensco plc, 4.70%, Due 3/15/2021 | 350 | 353 | ||||||
EOG Resources, Inc., 2.50%, Due 2/1/2016 | 425 | 421 | ||||||
Express Scripts, Inc., 6.25%, Due 6/15/2014 | 685 | 768 | ||||||
France Telecom S.A., |
See accompanying notes
31
Table of Contents
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
4.375%, Due 7/8/2014 | $ | 385 | $ | 416 | ||||
2.125%, Due 9/16/2015 | 225 | 223 | ||||||
GlaxoSmithKline Capital, Inc., 5.65%, Due 5/15/2018 | 125 | 142 | ||||||
Health Care REIT, Inc., | ||||||||
3.625%, Due 3/15/2016 | 295 | 295 | ||||||
5.25%, Due 1/15/2022 | 345 | 346 | ||||||
Hewlett-Packard Co., | ||||||||
6.125%, Due 3/1/2014 | 485 | 546 | ||||||
2.20%, Due 12/1/2015 | 425 | 422 | ||||||
Home Depot, Inc., 4.40%, Due 4/1/2021 | 400 | 402 | ||||||
Honeywell International, Inc., 4.25%, Due 3/1/2013 | 620 | 659 | ||||||
Hospira, Inc., 6.05%, Due 3/30/2017 | 205 | 231 | ||||||
International Business Machines Corp., | ||||||||
4.75%, Due 11/29/2012 | 525 | 558 | ||||||
7.625%, Due 10/15/2018 | 845 | 1,069 | ||||||
ITT Corp., 4.90%, Due 5/1/2014 | 615 | 665 | ||||||
John Deere Capital Corp., 4.90%, Due 9/9/2013 | 650 | 707 | ||||||
Johnson Controls, Inc., 5.00%, Due 3/30/2020 | 480 | 509 | ||||||
Kellogg Co., 4.25%, Due 3/6/2013 | 250 | 264 | ||||||
Koninklijke Philips Electronics N.V., 5.75%, Due 3/11/2018 | 465 | 526 | ||||||
Kraft Foods, Inc., 6.50%, Due 2/9/2040 | 220 | 245 | ||||||
Lorillard Tobacco Co., 8.125%, Due 6/23/2019 | 255 | 302 | ||||||
Marathon Oil Corp., 6.00%, Due 10/1/2017 | 475 | 542 | ||||||
Marathon Petroleum Corp., 3.50%, Due 3/1/2016A | 420 | 426 | ||||||
McKesson Corp., 3.25%, Due 3/1/2016 | 200 | 204 | ||||||
Medtronic, Inc., 3.00%, Due 3/15/2015 | 965 | 1,002 | ||||||
Norfolk Southern Corp., 5.75%, Due 4/1/2018 | 300 | 341 | ||||||
Northrop Grumman Corp., 5.05%, Due 8/1/2019 | 200 | 214 | ||||||
Novartis Capital Corp., 2.90%, Due 4/24/2015 | 880 | 910 | ||||||
Petrobras International Finance Co. — Pifco, | ||||||||
3.875%, Due 1/27/2016 | 505 | 512 | ||||||
6.875%, Due 1/20/2040 | 110 | 116 | ||||||
Petroleos Mexicanos, 6.00%, Due 3/5/2020 | 375 | 401 | ||||||
PPG Industries, Inc., 1.90%, Due 1/15/2016 | 250 | 240 | ||||||
Quest Diagnostics, Inc., 4.75%, Due 1/30/2020 | 225 | 230 | ||||||
Rogers Communications, Inc., 5.50%, Due 3/15/2014 | 475 | 525 | ||||||
Sanofi, | ||||||||
1.625%, Due 3/28/2014 | 740 | 746 | ||||||
4.00%, Due 3/29/2021 | 495 | 493 | ||||||
Shell International Finance BV, 3.10%, Due 6/28/2015 | 380 | 394 | ||||||
Simon Property Group LP, | ||||||||
5.75%, Due 12/1/2015 | 460 | 515 | ||||||
10.35%, Due 4/1/2019 | 375 | 522 | ||||||
Teck Resources Ltd., 6.00%, Due 8/15/2040 | 205 | 212 | ||||||
Telecom Italia Capital S.A., 4.95%, Due 9/30/2014 | 245 | 258 | ||||||
Telefonica Emisiones SAU, | ||||||||
4.949%, Due 1/15/2015 | 240 | 257 | ||||||
6.421%, Due 6/20/2016 | 450 | 507 | ||||||
The Boeing Co, 1.875%, Due 11/20/2012 | 400 | 407 | ||||||
The Coca-Cola Co, 0.75%, Due 11/15/2013 | 1,190 | 1,181 | ||||||
The Dow Chemical Co, | ||||||||
2.50%, Due 2/15/2016 | 200 | 196 | ||||||
4.25%, Due 11/15/2020 | 250 | 245 | ||||||
Thomson Reuters Corp., 4.70%, Due 10/15/2019 | 225 | 239 | ||||||
Time Warner Cable, Inc., | ||||||||
5.85%, Due 5/1/2017 | 450 | 501 | ||||||
6.75%, Due 7/1/2018 | 825 | 950 | ||||||
Time Warner, Inc., | ||||||||
4.875%, Due 3/15/2020 | 290 | 301 | ||||||
4.75%, Due 3/29/2021 | 350 | 357 | ||||||
Tyco Electronics Group S.A., 6.55%, Due 10/1/2017 | 225 | 263 | ||||||
Tyco International Finance S.A., | ||||||||
3.75%, Due 1/15/2018 | 400 | 401 |
See accompanying notes
32
Table of Contents
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
8.50%, Due 1/15/2019 | $ | 320 | $ | 409 | ||||
Union Pacific Corp., 7.875%, Due 1/15/2019 | 550 | 696 | ||||||
United Parcel Service, Inc., 3.125%, Due 1/15/2021 | 955 | 896 | ||||||
United Technologies Corp., 6.125%, Due 7/15/2038 | 125 | 141 | ||||||
UnitedHealth Group, Inc., | ||||||||
4.875%, Due 2/15/2013 | 750 | 797 | ||||||
3.875%, Due 10/15/2020 | 425 | 412 | ||||||
Valero Energy Corp., | ||||||||
9.375%, Due 3/15/2019 | 170 | 221 | ||||||
6.625%, Due 6/15/2037 | 205 | 216 | ||||||
Verizon Communications, Inc., | ||||||||
5.50%, Due 4/1/2017 | 500 | 561 | ||||||
4.60%, Due 4/1/2021 | 280 | 286 | ||||||
6.90%, Due 4/15/2038 | 500 | 573 | ||||||
Vodafone Group plc, 6.15%, Due 2/27/2037 | 360 | 393 | ||||||
Wal-Mart Stores, Inc., | ||||||||
7.55%, Due 2/15/2030 | 400 | 515 | ||||||
5.625%, Due 4/15/2041 | 255 | 263 | ||||||
Xerox Corp., | ||||||||
5.65%, Due 5/15/2013 | 50 | 54 | ||||||
8.25%, Due 5/15/2014 | 190 | 223 | ||||||
4.25%, Due 2/15/2015 | 500 | 530 | ||||||
53,945 | ||||||||
Other Government - 0.28% | ||||||||
Province of Ontario Canada, | ||||||||
4.10%, Due 6/16/2014 | 350 | 379 | ||||||
3.15%, Due 12/15/2017 | 425 | 429 | ||||||
808 | ||||||||
Utilities - 4.98% | ||||||||
Columbus Southern Power Co., 5.50%, Due 3/1/2013 | 595 | 639 | ||||||
Commonwealth Edison Co., 4.00%, Due 8/1/2020 | 190 | 186 | ||||||
Consolidated Edison Co of New York, Inc., 5.50%, Due 12/1/2039 | 350 | 360 | ||||||
Dominion Resources, Inc., 1.80%, Due 3/15/2014 | 990 | 994 | ||||||
Duke Energy Carolinas LLC, 5.10%, Due 4/15/2018 | 400 | 441 | ||||||
Duke Energy Indiana, Inc., 6.05%, Due 6/15/2016 | 450 | 512 | ||||||
EDF S.A., 4.60%, Due 1/27/2020A | 580 | 598 | ||||||
Energy Transfer Partners LP, | ||||||||
8.50%, Due 4/15/2014 | 605 | 709 | ||||||
9.00%, Due 4/15/2019 | 300 | 383 | ||||||
Enterprise Products Operating LLC, | ||||||||
5.65%, Due 4/1/2013 | 555 | 599 | ||||||
6.125%, Due 10/15/2039 | 350 | 357 | ||||||
Exelon Generation Co LLC, | ||||||||
5.20%, Due 10/1/2019 | 350 | 365 | ||||||
6.25%, Due 10/1/2039 | 365 | 370 | ||||||
FirstEnergy Solutions Corp., 4.80%, Due 2/15/2015 | 175 | 186 | ||||||
Midamerican Energy Holdings Co., | ||||||||
5.875%, Due 10/1/2012 | 605 | 645 | ||||||
6.125%, Due 4/1/2036 | 375 | 403 | ||||||
ONEOK Partners LP, 6.125%, Due 2/1/2041 | 500 | 516 | ||||||
Pacific Gas & Electric Co., | ||||||||
6.25%, Due 12/1/2013 | 150 | 166 | ||||||
3.50%, Due 10/1/2020 | 450 | 422 | ||||||
Progress Energy, Inc., 4.875%, Due 12/1/2019 | 600 | 633 | ||||||
Sempra Energy, 6.50%, Due 6/1/2016 | 325 | 374 | ||||||
Southern Power Co., 6.25%, Due 7/15/2012 | 550 | 583 | ||||||
Spectra Energy Capital LLC, | ||||||||
5.668%, Due 8/15/2014 | 320 | 354 | ||||||
5.65%, Due 3/1/2020 | 265 | 285 | ||||||
TransCanada PipeLines Ltd., | ||||||||
7.625%, Due 1/15/2039 | 520 | 657 | ||||||
6.10%, Due 6/1/2040 | 290 | 312 |
See accompanying notes
33
Table of Contents
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
Union Electric Co., 6.70%, Due 2/1/2019 | $ | 510 | $ | 594 | ||||
Virginia Electric and Power Co., 5.40%, Due 4/30/2018 | 400 | 443 | ||||||
Westar Energy, Inc., 6.00%, Due 7/1/2014 | 200 | 221 | ||||||
Xcel Energy, Inc., 5.613%, Due 4/1/2017 | 781 | 859 | ||||||
14,166 | ||||||||
Total Corporate Obligations (Cost $119,074) | 124,886 | |||||||
ASSET-BACKED SECURITIES - 3.20% | ||||||||
American Express Credit Account Master Trust, 5.35%, Due 1/15/2014, 2006-2 A | 1,550 | 1,559 | ||||||
BMW Floorplan Master Owner Trust, 1.369%, Due 9/15/2014, 2009-1A AA B | 400 | 404 | ||||||
Capital One Multi-Asset Execution Trust, 5.15%, Due 6/15/2014, 2006-A10 A10 | 1,150 | 1,166 | ||||||
Citibank Credit Card Issuance Trust, 1.769%, Due 5/15/2014, 2009-A2 A2B | 750 | 761 | ||||||
CNH Equipment Trust, 1.17%, Due 5/15/2015, 2010-C A3 | 665 | 666 | ||||||
Discover Card Master Trust, 1.519%, Due 2/17/2015, 2009-A2 AB | 600 | 608 | ||||||
Ford Credit Auto Lease Trust, 1.04%, Due 3/15/2013, 2010-A A2A | 275 | 275 | ||||||
Ford Credit Floorplan Master Owner Trust, 1.769%, Due 9/15/2014, 2009-2 AB | 400 | 406 | ||||||
Harley-Davidson Motorcycle Trust, 1.87%, Due 2/15/2014, 2009-4 A3 | 350 | 352 | ||||||
Honda Auto Receivables Owner Trust, 3.30%, Due 9/15/2015, 2009-3 A4 | 385 | 399 | ||||||
Hyundai Auto Receivables Trust, 3.15%, Due 3/15/2016, 2009-A A4 | 220 | 229 | ||||||
John Deere Owner Trust, | ||||||||
2.59%, Due 10/15/2013, 2009-A A3 | 119 | 120 | ||||||
3.96%, Due 5/16/2016, 2009-A A4 | 510 | 528 | ||||||
Nissan Master Owner Trust Receivables, 1.369%, Due 1/15/2015, 2010-AA AA B | 750 | 758 | ||||||
Volkswagen Auto Loan Enhanced Trust, | ||||||||
0.66%, Due 5/21/2012, 2010-1 A2 | 86 | 86 | ||||||
6.24%, Due 7/20/2015, 2008-2 A4A | 300 | 318 | ||||||
World Omni Auto Receivables Trust, 1.11%, Due 5/15/2015, 2011-A A3 | 470 | 470 | ||||||
Total Asset-Backed Securities (Cost $9,014) | 9,105 | |||||||
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS - 4.44% | ||||||||
Banc of America Commercial Mortgage, Inc., | ||||||||
5.317%, Due 9/10/2047, 2006-5 A2 | 360 | 366 | ||||||
5.634%, Due 4/10/2049, 2007-2 A2 | 596 | 609 | ||||||
Bear Stearns Commercial Mortgage Securities, | ||||||||
5.201%, Due 12/11/2038, 2006-PWR14 A4 | 790 | 857 | ||||||
5.54%, Due 9/11/2041, 2006-PW13 A4 | 1,285 | 1,414 | ||||||
4.831%, Due 7/11/2042, 2004-PWR5 A4 | 835 | 868 | ||||||
Citigroup Commercial Mortgage Trust, 4.38%, Due 10/15/2041, 2004-C2 A3 | 427 | 430 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust, 5.886%, Due 11/15/2044, 2007-CD5 A4 | 840 | 931 | ||||||
GS Mortgage Securities Corp II, | ||||||||
4.607%, Due 7/10/2039, 2005-GG4 A3 | 380 | 388 | ||||||
3.679%, Due 8/10/2043, 2010-C1 A1A | 579 | 594 | ||||||
3.849%, Due 12/10/2043, 2010-C2A | 793 | 819 | ||||||
3.645%, Due 3/10/2044, 2011-GC3 A2 | 750 | 765 | ||||||
JP Morgan Chase Commercial Mortgage Securities Corp., | �� | |||||||
4.678%, Due 7/15/2042, 2005-LDP2 A3A | 341 | 352 | ||||||
3.853%, Due 6/15/2043, 2010-C1 A1A | 737 | 764 | ||||||
4.388%, Due 2/16/2046, 2011-C3A A3A | 800 | 824 | ||||||
4.625%, Due 3/15/2046, 2005-LDP1 A2 | 310 | 314 | ||||||
5.932%, Due 2/12/2049, 2007-CB19 A4 | 550 | 606 | ||||||
5.629%, Due 2/12/2051, 2007-CB20 A2 | 711 | 735 | ||||||
LB-UBS Commercial Mortgage Trust, 5.424%, Due 2/15/2040, 2007-C1 A4 | 550 | 597 | ||||||
Wachovia Bank Commercial Mortgage Trust, 5.927%, Due 6/15/2049, 2007-C32 A2 | 386 | 404 | ||||||
Total Non-Agency Mortgage-Backed Obligations (Cost $11,792) | 12,637 | |||||||
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 23.56% | ||||||||
Federal Home Loan Mortgage Corporation - 7.74% | ||||||||
4.50%, Due 3/1/2019 | 264 | 280 |
See accompanying notes
34
Table of Contents
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
5.00%, Due 10/1/2020 | $ | 624 | $ | 671 | ||||
5.00%, Due 4/1/2023 | 0 | 0 | ||||||
3.50%, Due 10/1/2025 | 1,098 | 1,114 | ||||||
4.00%, Due 3/15/2026 | 993 | 1,046 | ||||||
5.00%, Due 8/1/2033 | 390 | 414 | ||||||
5.50%, Due 2/1/2034 | 480 | 519 | ||||||
6.00%, Due 8/1/2034 | 234 | 258 | ||||||
5.00%, Due 8/1/2035 | 266 | 282 | ||||||
5.00%, Due 9/1/2035 | 677 | 717 | ||||||
6.00%, Due 8/1/2036 | 207 | 228 | ||||||
5.50%, Due 4/1/2037 | 399 | 429 | ||||||
5.50%, Due 12/1/2037 | 1,683 | 1,816 | ||||||
5.00%, Due 3/1/2038 | 573 | 605 | ||||||
6.00%, Due 3/1/2038 | 974 | 1,067 | ||||||
5.50%, Due 5/1/2038 | 603 | 648 | ||||||
5.50%, Due 6/1/2038 | 443 | 477 | ||||||
5.50%, Due 10/1/2039 | 661 | 711 | ||||||
5.00%, Due 4/1/2040 | 4,355 | 4,600 | ||||||
5.00%, Due 5/1/2040 | 2,764 | 2,925 | ||||||
4.00%, Due 1/1/2041 | 1,689 | 1,680 | ||||||
4.50%, Due 2/1/2041 | 1,495 | 1,538 | ||||||
22,025 | ||||||||
Federal National Mortgage Association - 14.07% | ||||||||
6.50%, Due 2/1/2017 | 105 | 115 | ||||||
5.00%, Due 12/1/2017 | 359 | 387 | ||||||
4.50%, Due 9/1/2018 | 721 | 768 | ||||||
4.00%, Due 8/1/2020 | 184 | 193 | ||||||
4.50%, Due 4/1/2024 | 483 | 512 | ||||||
4.50%, Due 3/1/2025 | 3,256 | 3,449 | ||||||
4.50%, Due 5/1/2025 | 1,026 | 1,085 | ||||||
4.50%, Due 6/1/2025 | 2,474 | 2,614 | ||||||
3.50%, Due 1/1/2026 | 590 | 598 | ||||||
5.00%, Due 3/1/2034 | 516 | 549 | ||||||
5.50%, Due 6/1/2034 | 287 | 311 | ||||||
4.50%, Due 9/1/2034 | 181 | 188 | ||||||
5.50%, Due 2/1/2035 | 576 | 624 | ||||||
5.00%, Due 11/1/2035 | 734 | 779 | ||||||
5.50%, Due 12/1/2035 | 416 | 450 | ||||||
5.50%, Due 1/1/2036 | 491 | 531 | ||||||
5.00%, Due 2/1/2036 | 434 | 460 | ||||||
5.50%, Due 4/1/2036 | 936 | 1,012 | ||||||
6.00%, Due 9/1/2036 | 190 | 208 | ||||||
6.50%, Due 9/1/2036 | 702 | 793 | ||||||
6.50%, Due 12/1/2036 | 342 | 385 | ||||||
5.50%, Due 2/1/2037 | 544 | 587 | ||||||
5.50%, Due 8/1/2037 | 1,436 | 1,554 | ||||||
6.00%, Due 9/1/2037 | 509 | 557 | ||||||
6.00%, Due 1/1/2038 | 794 | 870 | ||||||
5.50%, Due 3/1/2038 | 1,396 | 1,511 | ||||||
5.00%, Due 4/1/2038 | 513 | 542 | ||||||
5.00%, Due 6/1/2038 | 694 | 733 | ||||||
5.50%, Due 6/1/2038 | 1,055 | 1,137 | ||||||
4.50%, Due 1/1/2040 | 3,311 | 3,412 | ||||||
5.00%, Due 5/1/2040 | 3,645 | 3,853 | ||||||
5.50%, Due 6/1/2040 | 2,435 | 2,623 | ||||||
4.50%, Due 8/1/2040 | 2,212 | 2,279 | ||||||
4.00%, Due 9/1/2040 | 2,168 | 2,161 | ||||||
5.00%, Due 1/1/2041 | 2,125 | 2,247 | ||||||
40,077 | ||||||||
Government National Mortgage Association - 1.75% | ||||||||
6.50%, Due 3/15/2028 | 243 | 275 | ||||||
6.00%, Due 4/15/2031 | 279 | 312 |
See accompanying notes
35
Table of Contents
American Beacon Intermediate Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
5.50%, Due 2/20/2034 | $ | 329 | $ | 359 | ||||
5.50%, Due 2/15/2040 | 1,084 | 1,182 | ||||||
4.50%, Due 10/20/2040 | 1,357 | 1,421 | ||||||
5.00%, Due 2/20/2041 | 1,319 | 1,415 | ||||||
4,964 | ||||||||
Total U.S. Agency Mortgage-Backed Obligations (Cost $65,536) | 67,066 | |||||||
U.S. AGENCY OBLIGATIONS - 0.90% | ||||||||
Federal National Mortgage Association - 0.34% | ||||||||
5.125%, Due 1/2/2014 | 385 | 423 | ||||||
4.625%, Due 10/15/2014 | 500 | 554 | ||||||
977 | ||||||||
Government National Mortgage Association - 0.56% | ||||||||
4.201%, Due 8/16/2026 2006-9 A | 36 | 36 | ||||||
1.692%, Due 11/16/2035 2009-148 A | 446 | 446 | ||||||
2.989%, Due 3/16/2039 2010-71 AC | 1,083 | 1,105 | ||||||
1,587 | ||||||||
Total U.S. Agency Obligations (Cost $2,465) | 2,564 | |||||||
U.S. TREASURY OBLIGATIONS - 20.89% | ||||||||
U.S. Treasury Bonds - 4.80% | ||||||||
7.875%, Due 2/15/2021 | 1,050 | 1,459 | ||||||
6.25%, Due 8/15/2023 | 1,400 | 1,758 | ||||||
6.875%, Due 8/15/2025 | 770 | 1,026 | ||||||
5.25%, Due 11/15/2028 | 750 | 858 | ||||||
4.75%, Due 2/15/2037 | 1,300 | 1,381 | ||||||
4.50%, Due 8/15/2039 | 2,810 | 2,854 | ||||||
4.25%, Due 11/15/2040 | 4,465 | 4,340 | ||||||
13,676 | ||||||||
U.S. Treasury Notes - 16.09% | ||||||||
1.375%, Due 1/15/2013 | 3,145 | 3,192 | ||||||
0.75%, Due 8/15/2013 | 5,000 | 5,003 | ||||||
2.625%, Due 7/31/2014 | 5,000 | 5,236 | ||||||
2.25%, Due 1/31/2015 | 1,000 | 1,031 | ||||||
2.50%, Due 4/30/2015 | 5,000 | 5,193 | ||||||
2.00%, Due 1/31/2016 | 8,475 | 8,526 | ||||||
3.00%, Due 9/30/2016 | 2,150 | 2,245 | ||||||
3.125%, Due 10/31/2016 | 1,400 | 1,469 | ||||||
4.25%, Due 8/15/2015 | 2,000 | 2,217 | ||||||
3.75%, Due 11/15/2018 | 600 | 639 | ||||||
3.625%, Due 2/15/2020 | 2,700 | 2,807 | ||||||
3.625%, Due 2/15/2021 | 8,005 | 8,223 | ||||||
45,781 | ||||||||
Total U.S. Treasury Obligations (Cost $59,143) | 59,457 | |||||||
Shares | ||||||||
SHORT-TERM INVESTMENTS - 2.21% (Cost $6,293) | ||||||||
JPMorgan U.S. Government Money Market Fund | 6,292,791 | 6,293 | ||||||
TOTAL INVESTMENTS - 99.07% (Cost $273,316) | 282,009 | |||||||
OTHER ASSETS, NET OF LIABILITIES - 0.93% | 2,658 | |||||||
TOTAL NET ASSETS - 100.00% | $ | 284,667 | ||||||
Percentages are stated as a percent of net assets. |
A | 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 $13,655 or 4.80% of net assets. The Fund has no right to demand registration of these securities. | |
B | 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
36
Table of Contents
American Beacon Short-Term Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
CORPORATE OBLIGATIONS - 45.83% | ||||||||
Finance - 26.27% | ||||||||
ABN Amro Bank N.V., 2.043%, Due 1/30/2014A B | $ | 2,000 | $ | 2,044 | ||||
American Express Co., 7.25%, Due 5/20/2014 | 1,000 | 1,148 | ||||||
American International Group, Inc., 3.65%, Due 1/15/2014 | 2,000 | 2,050 | ||||||
ANZ National International Ltd/New Zealand, 1.309%, Due 12/20/2013A B | 2,000 | 2,002 | ||||||
Bank of America Corp., 0.640%, Due 9/15/2014A | 1,290 | 1,263 | ||||||
Barclays Bank plc, 5.45%, Due 9/12/2012 | 1,000 | 1,060 | ||||||
Citigroup, Inc., | ||||||||
1.235%, Due 4/1/2014A | 1,000 | 999 | ||||||
0.591%, Due 11/5/2014A | 2,573 | 2,507 | ||||||
CME Group, Inc., 5.40%, Due 8/1/2013 | 250 | 273 | ||||||
Credit Suisse/New York NY, 5.00%, Due 5/15/2013 | 2,000 | 2,144 | ||||||
Danske Bank A/S, 1.331%, Due 4/14/2014A B | 3,000 | 3,000 | ||||||
Dexia Credit Local/New York NY, 0.710%, Due 3/5/2013A B | 3,000 | 2,988 | ||||||
General Electric Capital Corp., | ||||||||
0.439%, Due 3/20/2014A | 1,446 | 1,427 | ||||||
0.570%, Due 9/15/2014A | 1,218 | 1,203 | ||||||
HSBC Finance Corp., 0.528%, Due 1/15/2014A | 1,000 | 986 | ||||||
ING Bank N.V., 1.360%, Due 3/15/2013A B | 3,100 | 3,105 | ||||||
Lloyds TSB Bank plc, 2.624%, Due 1/24/2014A | 2,000 | 2,054 | ||||||
MassMutual Global Funding II, 3.625%, Due 7/16/2012B | 500 | 514 | ||||||
MetLife Institutional Funding II, 1.201%, Due 4/4/2014A B | 3,000 | 3,007 | ||||||
Metropolitan Life Global Funding I, 2.875%, Due 9/17/2012B | 1,000 | 1,022 | ||||||
Monumental Global Funding III, 0.478%, Due 1/15/2014A B | 1,000 | 965 | ||||||
Morgan Stanley, 0.758%, Due 10/15/2015A | 3,000 | 2,891 | ||||||
National Australia Bank Ltd., 1.70%, Due 12/10/2013B | 2,000 | 1,992 | ||||||
Nationwide Building Society, 5.50%, Due 7/18/2012B | 1,000 | 1,049 | ||||||
Pricoa Global Funding I, 5.40%, Due 10/18/2012B | 500 | 530 | ||||||
Prudential Financial, Inc., 4.50%, Due 7/15/2013 | 1,000 | 1,054 | ||||||
Societe Generale, 1.326%, Due 4/11/2014A B | 2,000 | 2,003 | ||||||
Svenska Handelsbanken AB, 4.875%, Due 6/10/2014B | 1,500 | 1,620 | ||||||
The Goldman Sachs Group Inc, | ||||||||
4.75%, Due 7/15/2013 | 2,000 | 2,127 | ||||||
0.674%, Due 7/22/2015A | 1,000 | 976 | ||||||
Wachovia Bank NA, 0.691%, Due 11/3/2014A | 1,000 | 982 | ||||||
50,985 | ||||||||
Industrials - 16.98% | ||||||||
American Honda Finance Corp., 4.625%, Due 4/2/2013B | 1,000 | 1,060 | ||||||
Anheuser-Busch InBev Worldwide, Inc., | ||||||||
3.00%, Due 10/15/2012 | 1,000 | 1,029 | ||||||
2.50%, Due 3/26/2013 | 1,000 | 1,025 | ||||||
BP Capital Markets plc, 0.910%, Due 3/11/2014A | 2,000 | 2,013 | ||||||
Burlington Northern Santa Fe LLC, 4.875%, Due 1/15/2015 | 1,000 | 1,091 | ||||||
Canadian Natural Resources Ltd., 6.70%, Due 7/15/2011 | 1,000 | 1,012 | ||||||
Caterpillar Financial Services Corp., 4.25%, Due 2/8/2013 | 500 | 529 | ||||||
Cellco Partnership / Verizon Wireless Capital LLC, 5.25%, Due 2/1/2012 | 1,000 | 1,035 | ||||||
Comcast Cable Communications Holdings, Inc., 8.375%, Due 3/15/2013 | 1,365 | 1,539 | ||||||
Daimler Finance North America LLC, | ||||||||
5.75%, Due 9/8/2011 | 1,000 | 1,018 | ||||||
0.919%, Due 3/28/2014A B | 2,000 | 2,001 | ||||||
Devon Financing Corp ULC, 6.875%, Due 9/30/2011 | 1,000 | 1,026 | ||||||
EOG Resources Canada, Inc., 4.75%, Due 3/15/2014B | 1,000 | 1,084 | ||||||
France Telecom S.A., 4.375%, Due 7/8/2014 | 1,000 | 1,081 | ||||||
General Mills, Inc., 5.25%, Due 8/15/2013 | 1,000 | 1,089 | ||||||
Hewlett-Packard Co., 4.50%, Due 3/1/2013A | 1,000 | 1,066 | ||||||
John Deere Capital Corp., 5.25%, Due 10/1/2012 | 1,000 | 1,062 | ||||||
Johnson Controls, Inc., 1.75%, Due 3/1/2014 | 500 | 502 | ||||||
Kraft Foods, Inc., 5.625%, Due 11/1/2011 | 64 | 66 | ||||||
Nissan Motor Acceptance Corp., 4.50%, Due 1/30/2015B | 1,000 | 1,051 | ||||||
Quest Diagnostics, Inc., 1.159%, Due 3/24/2014A | 1,000 | 1,005 | ||||||
Telefonica Emisiones SAU, 0.641%, Due 2/4/2013A | 1,000 | 992 |
See accompanying notes
37
Table of Contents
American Beacon Short-Term Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
Time Warner Cable, Inc., 5.40%, Due 7/2/2012 | $ | 1,000 | $ | 1,052 | ||||
Tyco International Finance S.A., 4.125%, Due 10/15/2014 | 500 | 535 | ||||||
Union Pacific Corp., | ||||||||
6.50%, Due 4/15/2012 | 500 | 527 | ||||||
5.45%, Due 1/31/2013 | 1,000 | 1,076 | ||||||
Verizon Communications, Inc., 0.919%, Due 3/28/2014A | 3,000 | 3,030 | ||||||
Volkswagen International Finance N.V., | ||||||||
1.625%, Due 8/12/2013B | 1,000 | 1,007 | ||||||
0.917%, Due 4/1/2014A B | 2,000 | 2,007 | ||||||
Xerox Corp., 5.65%, Due 5/15/2013 | 300 | 324 | ||||||
32,934 | ||||||||
Utilities - 2.58% | ||||||||
Dominion Resources, Inc., 5.70%, Due 9/17/2012 | 1,000 | 1,063 | ||||||
EDF S.A., 5.50%, Due 1/26/2014B | 1,000 | 1,099 | ||||||
Midamerican Energy Holdings Co., 3.15%, Due 7/15/2012 | 1,000 | 1,028 | ||||||
NextEra Energy Capital Holdings, Inc., 0.712%, Due 11/9/2012A | 1,000 | 1,003 | ||||||
Pacific Gas & Electric Co., 6.25%, Due 12/1/2013 | 730 | 808 | ||||||
5,001 | ||||||||
Total Corporate Obligations (Cost $87,518) | 88,920 | |||||||
ASSET-BACKED SECURITIES - 20.72% | ||||||||
Ally Master Owner Trust, 1.969%, Due 1/15/2015, 2010-1 AA B | 3,500 | 3,569 | ||||||
Bank of America Auto Trust, | ||||||||
2.67%, Due 7/15/2013, 2009-1A A3B | 569 | 574 | ||||||
2.13%, Due 9/15/2013, 2009-2A A3B | 688 | 693 | ||||||
BMW Floorplan Master Owner Trust, 1.369%, Due 9/15/2014, 2009-1A AA B | 2,000 | 2,019 | ||||||
Capital One Multi-Asset Execution Trust, | ||||||||
3.20%, Due 4/15/2014, 2009-A2 A2 | 2,000 | 2,007 | ||||||
4.70%, Due 6/15/2015, 2005-A7 A7 | 2,300 | 2,418 | ||||||
CarMax Auto Owner Trust, | ||||||||
0.83%, Due 11/15/2012, 2010-1 A2 | 369 | 369 | ||||||
0.72%, Due 11/15/2013, 2011-1 A2 | 1,000 | 1,001 | ||||||
Chase Issuance Trust, 1.769%, Due 4/15/2014, 2009-A2 A2A | 2,000 | 2,027 | ||||||
Citibank Credit Card Issuance Trust, 2.70%, Due 6/24/2013, 2009-A3 A3 | 2,000 | 2,007 | ||||||
Discover Card Master Trust, 1.519%, Due 2/17/2015, 2009-A2 AA | 2,000 | 2,027 | ||||||
Ford Credit Auto Owner Trust, 2.17%, Due 10/15/2013, 2009-D A3 | 797 | 805 | ||||||
Ford Credit Floorplan Master Owner Trust, | ||||||||
1.769%, Due 9/15/2014, 2009-2 AA | 3,200 | 3,249 | ||||||
0.819%, Due 2/15/2016, 2011-1 A2A | 2,000 | 2,000 | ||||||
GE Capital Credit Card Master Note Trust, 3.69%, Due 7/15/2015, 2009-2 A | 4,300 | 4,450 | ||||||
GE Equipment Midticket LLC, 2.34%, Due 6/17/2013, 2009-1 A3 | 564 | 569 | ||||||
GE Equipment Small Ticket LLC, 1.45%, Due 1/21/2018, 2011-1 A3B | 1,000 | 1,003 | ||||||
Harley-Davidson Motorcycle Trust, 5.52%, Due 11/15/2013, 2007-3 A4 | 1,061 | 1,087 | ||||||
Honda Auto Receivables Owner Trust, 2.31%, Due 5/15/2013, 2009-3 A3 | 1,024 | 1,034 | ||||||
Mercedes-Benz Auto Receivables Trust, 0.70%, Due 8/15/2012, 2010-1 A2 | 503 | 503 | ||||||
Nissan Auto Lease Trust, | ||||||||
1.12%, Due 12/15/2013, 2010-B A3 | 1,000 | 1,004 | ||||||
2.07%, Due 1/15/2015, 2009-B A3 | 1,452 | 1,457 | ||||||
Nissan Master Owner Trust Receivables, 1.369%, Due 1/15/2015, 2010-AA AA B | 3,000 | 3,034 | ||||||
Volkswagen Auto Loan Enhanced Trust, | ||||||||
0.66%, Due 5/21/2012, 2010-1 A2 | 229 | 229 | ||||||
6.24%, Due 7/20/2015, 2008-2 A4A | 1,000 | 1,059 | ||||||
Total Asset-Backed Securities (Cost $39,900) | 40,194 | |||||||
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS - 2.47% | ||||||||
Banc of America Commercial Mortgage, Inc., | ||||||||
4.561%, Due 11/10/2041, 2004-5 A3 | 883 | 892 | ||||||
5.634%, Due 4/10/2049, 2007-2 A2 | 561 | 573 | ||||||
GS Mortgage Securities Corp II, 2.716%, Due 2/10/2021, 2011-ALF AB | 1,500 | 1,509 |
See accompanying notes
38
Table of Contents
American Beacon Short-Term Bond Fund
Schedule of Investments
April 30, 2011 (Unaudited)
Schedule of Investments
April 30, 2011 (Unaudited)
Par Amount | Value | |||||||
($000) | ($000) | |||||||
JP Morgan Chase Commercial Mortgage Securities Corp., 3.853%, Due 6/15/2043, 2010-C1 A1B | $ | 982 | $ | 1,019 | ||||
NCUA Guaranteed Notes, 1.84%, Due 10/7/2020, 2010-R1 2A | 794 | 797 | ||||||
Total Non-Agency Mortgage-Backed Obligations (Cost $4,748) | 4,790 | |||||||
U.S. AGENCY OBLIGATIONS - 14.40% | ||||||||
Government National Mortgage Association - 14.40% | ||||||||
4.968%, Due 12/16/2021 2006-18 A | 167 | 168 | ||||||
4.201%, Due 8/16/2026 2006-9 A | 182 | 182 | ||||||
1.864%, Due 8/16/2031 2010-141 A | 3,544 | 3,559 | ||||||
2.239%, Due 12/16/2031 2009-115 IO | 2,979 | 3,015 | ||||||
2.21%, Due 11/16/2034 2011-16 A | 2,988 | 3,022 | ||||||
1.692%, Due 11/16/2035 2009-148 A | 2,971 | 2,972 | ||||||
2.21%, Due 12/16/2035 2011-10 Z | 2,994 | 3,026 | ||||||
2.782%, Due 6/16/2036 2010-13 AD | 1,942 | 1,988 | ||||||
3.069%, Due 6/16/2036 2010-52 A | 2,904 | 3,016 | ||||||
2.45%, Due 7/16/2038 2011-49 A | 3,000 | 3,043 | ||||||
2.989%, Due 3/16/2039 2010-71 AC | 1,883 | 1,921 | ||||||
3.210%, Due 10/16/2039 2010-22 AB | 1,959 | 2,026 | ||||||
Total U.S. Agency Obligations (Cost $27,721) | 27,938 | |||||||
U.S. TREASURY OBLIGATIONS - 10.30% | ||||||||
2.50%, Due 3/31/2015 | 11,500 | 11,954 | ||||||
1.75%, Due 7/31/2015 | 8,000 | 8,038 | ||||||
Total U.S. Treasury Obligations (Cost $19,563) | 19,992 | |||||||
Shares | ||||||||
SHORT-TERM INVESTMENTS - 5.77% (Cost $11,202) | ||||||||
JPMorgan U.S. Government Money Market Fund | 11,201,584 | 11,202 | ||||||
TOTAL INVESTMENTS - 99.49% (Cost $190,651) | 193,036 | |||||||
OTHER ASSETS, NET OF LIABILITIES - 0.51% | 971 | |||||||
TOTAL NET ASSETS - 100.00% | $ | 194,007 | ||||||
Percentages are stated as a percent of net assets. |
A | 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. | |
B | 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 $48,570 or 25.04% of net assets. The Fund has no right to demand registration of these securities. |
See accompanying notes
39
Table of Contents
American Beacon Funds
Statements of Assets and Liabilities
April 30, 2011 (Unaudited)(in thousands except share and per share amounts)
Statements of Assets and Liabilities
April 30, 2011 (Unaudited)(in thousands except share and per share amounts)
Retirement | ||||||||||||||||
High Yield | Income and | Intermediate | Short-Term | |||||||||||||
Bond Fund | Appreciation Fund | Bond Fund | Bond Fund | |||||||||||||
Assets: | ||||||||||||||||
Investments in unaffiliated securities, at value A | $ | 141,172 | $ | 149,532 | $ | 282,009 | $ | 193,036 | ||||||||
Receivable for investments sold | 3,453 | 1,059 | 309 | — | ||||||||||||
Dividends and interest receivable | 2,952 | 1,096 | 2,225 | 702 | ||||||||||||
Receivable for fund shares sold | 226 | 97 | 620 | 365 | ||||||||||||
Receivable for tax reclaims | 3 | 7 | 7 | 3 | ||||||||||||
Receivable for expense reimbursement (Note 2) | — | — | — | 2 | ||||||||||||
Prepaid expenses | 45 | 50 | 98 | 88 | ||||||||||||
Total assets | 147,851 | 151,841 | 285,268 | 194,196 | ||||||||||||
Liabilities: | ||||||||||||||||
Payable for investments purchased | 4,728 | 704 | 518 | — | ||||||||||||
Payable for fund shares redeemed | 180 | 45 | 6 | 114 | ||||||||||||
Dividends payable | 49 | 6 | 1 | 3 | ||||||||||||
Management and investment advisory fees payable (Note 2) | 46 | 36 | 47 | 31 | ||||||||||||
Administrative service and service fees payable (Note 2) | 19 | 64 | 12 | 21 | ||||||||||||
Professional fees payable | 15 | 14 | 13 | 12 | ||||||||||||
Trustee fees payable | 5 | — | 1 | 2 | ||||||||||||
Other liabilities | 5 | 7 | 3 | 6 | ||||||||||||
Total liabilities | 5,047 | 876 | 601 | 189 | ||||||||||||
Net Assets | $ | 142,804 | $ | 150,965 | $ | 284,667 | $ | 194,007 | ||||||||
Analysis of Net Assets: | ||||||||||||||||
Paid-in-capital | 138,998 | 142,293 | 275,671 | 199,847 | ||||||||||||
Undistributed net investment income | 502 | (194 | ) | 501 | (179 | ) | ||||||||||
Accumulated net realized gain (loss) | (3,395 | ) | (260 | ) | (198 | ) | (8,046 | ) | ||||||||
Unrealized appreciation of investments, futures contracts, and foreign currency | 6,699 | 9,126 | 8,693 | 2,385 | ||||||||||||
Net assets | $ | 142,804 | $ | 150,965 | $ | 284,667 | $ | 194,007 | ||||||||
Shares outstanding (no par value): | ||||||||||||||||
Institutional Class | 4,778,874 | N/A | 26,191,649 | 18,229,382 | ||||||||||||
Y Class | 754 | 47,413 | 3,025 | 38,863 | ||||||||||||
Investor Class | 1,141,097 | 13,674,133 | 311,157 | 3,576,543 | ||||||||||||
AMR Class | 9,411,491 | N/A | N/A | N/A | ||||||||||||
A Class | 7,452 | 40,311 | 38,668 | 155,780 | ||||||||||||
C Class | 21,786 | 97,004 | 20,420 | 30,871 | ||||||||||||
Net asset value, offering and redemption price per share: | ||||||||||||||||
Institutional Class | $ | 9.29 | N/A | $ | 10.72 | $ | 8.80 | |||||||||
Y Class | $ | 9.30 | $ | 10.88 | $ | 10.76 | $ | 8.82 | ||||||||
Investor Class | $ | 9.30 | $ | 10.89 | $ | 10.70 | $ | 8.81 | ||||||||
AMR Class | $ | 9.30 | N/A | N/A | N/A | |||||||||||
A Class (net asset value and redemption price) | $ | 9.31 | $ | 10.90 | $ | 10.69 | $ | 8.80 | ||||||||
A Class (offering price) | $ | 9.77 | $ | 11.44 | $ | 11.22 | $ | 9.03 | ||||||||
C Class | $ | 9.29 | $ | 10.91 | $ | 10.70 | $ | 8.81 | ||||||||
A Cost of investments in unaffiliated securities | $ | 134,473 | $ | 140,406 | $ | 273,316 | $ | 190,651 |
See accompanying notes
40
Table of Contents
American Beacon Funds
Statements of Operations
Six Months Ended April 30, 2011 (in thousands) (Unaudited)
Statements of Operations
Six Months Ended April 30, 2011 (in thousands) (Unaudited)
Retirement | ||||||||||||||||
High Yield | Income and | Intermediate | Short-Term | |||||||||||||
Bond Fund | Appreciation Fund | Bond Fund | Bond Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend income from unaffiliated securities (net of foreign taxes) A | $ | 13 | $ | 137 | $ | 1 | $ | 1 | ||||||||
Interest income | 7,494 | 2,131 | 4,899 | 1,850 | ||||||||||||
Total investment income | 7,507 | 2,268 | 4,900 | 1,851 | ||||||||||||
Expenses: | ||||||||||||||||
Management and investment advisory fees (Note 2) | 337 | 215 | 281 | 161 | ||||||||||||
Administrative service fees (Note 2): | ||||||||||||||||
Institutional Class | 63 | — | 71 | 35 | ||||||||||||
Y Class | — | 1 | — | — | ||||||||||||
Investor Class | 64 | 201 | 5 | 36 | ||||||||||||
A Class | — | 1 | 1 | — | ||||||||||||
AMR Class | 21 | — | — | — | ||||||||||||
C Class | — | 2 | 1 | 1 | ||||||||||||
Transfer agent fees: | ||||||||||||||||
Institutional Class | 3 | — | 7 | 2 | ||||||||||||
Y Class | 2 | 2 | — | 2 | ||||||||||||
Investor Class | 3 | 4 | — | 2 | ||||||||||||
AMR Class | 3 | — | — | — | ||||||||||||
A Class | 2 | 2 | — | 2 | ||||||||||||
C Class | 2 | — | — | 2 | ||||||||||||
Custody and fund accounting fees | 12 | 9 | 20 | 9 | ||||||||||||
Professional fees | 19 | 19 | 20 | 12 | ||||||||||||
Registration fees and expenses | 38 | 30 | 26 | 20 | ||||||||||||
Service fees (Note 2): | ||||||||||||||||
Investor Class | 53 | 245 | 4 | 30 | ||||||||||||
C Class | — | 1 | — | — | ||||||||||||
Distribution fees (Note 2): | ||||||||||||||||
C Class | — | 5 | 1 | 1 | ||||||||||||
Prospectus and shareholder reports | 7 | 2 | 8 | 1 | ||||||||||||
Trustee fees | 7 | 4 | 8 | 3 | ||||||||||||
Other expenses | 9 | 9 | 8 | 4 | ||||||||||||
Total expenses | 645 | 752 | 461 | 323 | ||||||||||||
Net (fees waived and expenses reimbursed) (Note 2) | (5 | ) | (3 | ) | (1 | ) | (14 | ) | ||||||||
Net expenses | 640 | 749 | 460 | 309 | ||||||||||||
Net investment income | 6,867 | 1,519 | 4,440 | 1,542 | ||||||||||||
Realized and unrealized gain (loss) on investments: | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments | 7,264 | 1,350 | 99 | 585 | ||||||||||||
Change in net unrealized appreciation or depreciation of: | ||||||||||||||||
Investments | (3,074 | ) | 265 | (4,979 | ) | (1,545 | ) | |||||||||
Net gain (loss) on investments | 4,190 | 1,615 | (4,880 | ) | (960 | ) | ||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 11,057 | $ | 3,134 | $ | (440 | ) | $ | 582 | |||||||
A Foreign taxes | $ | — | $ | 2 | $ | — | $ | — |
See accompanying notes
41
Table of Contents
American Beacon Funds
Statements of Operations
Six Months Ended April 30, 2011 (in thousands) (Unaudited)
Statements of Operations
Six Months Ended April 30, 2011 (in thousands) (Unaudited)
High Yield Bond Fund | Retirement Income and Appreciation Fund | |||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
April 30, 2011 | October 31, 2010 | April 30, 2011 | October 31, 2010 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 6,867 | $ | 19,682 | $ | 1,519 | $ | 3,236 | ||||||||
Net realized gain on investments, futures contracts, and foreign currency transactions | 7,264 | 17,096 | 1,350 | 871 | ||||||||||||
Change in net unrealized appreciation or depreciation of investments, futures contracts, and foreign currency translations | (3,074 | ) | (1,037 | ) | 265 | 5,410 | ||||||||||
Net increase in net assets resulting from operations | 11,057 | 35,741 | 3,134 | 9,517 | ||||||||||||
Distributions to Shareholders: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Institutional Class | (1,687 | ) | (3,870 | ) | — | — | ||||||||||
Y Class | — | — | (7 | ) | (2 | ) | ||||||||||
Investor Class | (1,634 | ) | (6,758 | ) | (1,813 | ) | (3,375 | ) | ||||||||
AMR Class | (3,538 | ) | (9,049 | ) | ��� | — | ||||||||||
A Class | (2 | ) | — | (4 | ) | — | ||||||||||
C Class | (3 | ) | — | (9 | ) | (1 | ) | |||||||||
Net distributions to shareholders | (6,864 | ) | (19,677 | ) | (1,833 | ) | (3,378 | ) | ||||||||
Capital Share Transactions: | ||||||||||||||||
Proceeds from sales of shares | 17,637 | 256,394 | 30,399 | 41,365 | ||||||||||||
Reinvestment of dividends and distributions | 6,346 | 17,683 | 1,721 | 2,727 | ||||||||||||
Cost of shares redeemed | (71,060 | ) | (335,193 | ) | (10,046 | ) | (16,368 | ) | ||||||||
Redemption fees | 17 | 74 | — | — | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | (47,060 | ) | (61,042 | ) | 22,074 | 27,724 | ||||||||||
Net increase (decrease) in net assets | (42,867 | ) | (44,978 | ) | 23,375 | 33,863 | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 185,671 | 230,649 | 127,590 | 93,727 | ||||||||||||
End of Period * | $ | 142,804 | $ | 185,671 | $ | 150,965 | $ | 127,590 | ||||||||
* Includes undistributed net investment income (loss) of | $ | 502 | $ | 503 | $ | (194 | ) | $ | (62 | ) | ||||||
See accompanying notes
42
Table of Contents
American Beacon Funds
Statements of Changes in Net Assets (in thousands)
Statements of Changes in Net Assets (in thousands)
Intermediate Bond Fund | Short-Term Bond Fund | |||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
April 30, 2011 | October 31, 2010 | April 30, 2011 | October 31, 2010 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 4,440 | $ | 8,674 | $ | 1,542 | $ | 3,569 | ||||||||
Net realized gain on investments, futures contracts, and foreign currency transactions | 99 | 5,763 | 585 | 1,400 | ||||||||||||
Change in net unrealized appreciation or depreciation of investments, futures contracts, and foreign currency translations | (4,979 | ) | 5,150 | (1,545 | ) | 837 | ||||||||||
Net increase (decrease) in net assets resulting from operations | (440 | ) | 19,587 | 582 | 5,806 | |||||||||||
Distributions to Shareholders: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Institutional Class | (4,663 | ) | (8,812 | ) | (1,703 | ) | (3,855 | ) | ||||||||
Y Class | (3 | ) | (2 | ) | (2 | ) | — | |||||||||
Investor Class | (50 | ) | (89 | ) | (245 | ) | (945 | ) | ||||||||
A Class | (3 | ) | — | (2 | ) | — | ||||||||||
C Class | (2 | ) | (1 | ) | (2 | ) | — | |||||||||
Net realized gain on investments: | ||||||||||||||||
Institutional Class | (4,838 | ) | — | — | — | |||||||||||
Y Class | (6 | ) | — | — | — | |||||||||||
Investor Class | (63 | ) | — | — | — | |||||||||||
A Class | (2 | ) | — | — | — | |||||||||||
C Class | (6 | ) | — | — | — | |||||||||||
Net distributions to shareholders | �� | (9,636 | ) | (8,904 | ) | (1,954 | ) | (4,800 | ) | |||||||
Capital Share Transactions: | ||||||||||||||||
Proceeds from sales of shares | 31,439 | 210,797 | 70,050 | 84,366 | ||||||||||||
Reinvestment of dividends and distributions | 9,614 | 8,901 | 1,932 | 4,725 | ||||||||||||
Cost of shares redeemed | (41,626 | ) | (148,261 | ) | (31,188 | ) | (90,705 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (573 | ) | 71,437 | 40,794 | (1,614 | ) | ||||||||||
Net increase (decrease) in net assets | (10,649 | ) | 82,120 | 39,422 | (608 | ) | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 295,316 | 213,196 | 154,585 | 155,193 | ||||||||||||
End of Period * | $ | 284,667 | $ | 295,316 | $ | 194,007 | $ | 154,585 | ||||||||
* Includes undistributed net investment income (loss) of | $ | 501 | ) | $ | 501 | $ | (179 | ) | $ | (539 | ) | |||||
See accompanying notes
43
Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
1. Organization and Significant Accounting Policies
American Beacon Funds (the “Trust”) which is comprised of 19 Funds, 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.
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
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 | |
A Class | General public and investors investing through an intermediary with applicable sales charges | |
C Class | General public and investors investing through an intermediary with applicable sales charges | |
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.
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 fair 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”).
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Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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 2 securities are fixed-income securities that are valued using observable inputs as stated above.
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. During the period there were no significant transfers between levels for the Funds. As of April 30, 2011 the investments were classified as described below (in thousands):
High Yield Bond | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 902 | $ | — | $ | — | $ | 902 | ||||||||
Preferred Stocks | 469 | — | — | 469 | ||||||||||||
Corporate Obligations | — | 134,188 | — | 134,188 | ||||||||||||
Convertible Obligations | — | 1,252 | — | 1,252 | ||||||||||||
Short Term Investments | 4,361 | — | — | 4,361 | ||||||||||||
Total Investments in Securities | $ | 5,584 | $ | 135,588 | $ | — | $ | 141,172 | ||||||||
Retirement Income and Appreciation Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 8,951 | $ | — | $ | — | $ | 8,951 | ||||||||
Convertible Preferred | 975 | — | — | 975 | ||||||||||||
Preferred Stock | 2,123 | — | — | 2,123 | ||||||||||||
Corporate Obligations | — | 50,884 | — | 50,884 | ||||||||||||
Convertible Obligations | — | 19,526 | — | 19,526 | ||||||||||||
Asset-Backed Obligations | — | 4,444 | — | 4,444 | ||||||||||||
Non-Agency Mortgage Backed Obligations | — | 5,636 | — | 5,636 | ||||||||||||
U.S. Agency Mortgage Backed Obligations | — | 18,657 | — | 18,657 | ||||||||||||
U.S. Treasury Obligations | — | 29,168 | — | 29,168 | ||||||||||||
Short Term Investments | 2,173 | — | — | 2,173 | ||||||||||||
Total Investments in Securities | $ | 14,222 | $ | 135,310 | $ | — | $ | 149,532 | ||||||||
Intermediate Bond Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate Obligations | $ | — | $ | 125,290 | $ | — | $ | 125,290 | ||||||||
Asset-Backed Securities | — | 8,701 | — | 8,701 | ||||||||||||
Non-Agency Mortgage Backed Obligations | — | 12,637 | — | 12,637 | ||||||||||||
U.S. Agency Mortgage Backed Obligations | — | 68,653 | — | 68,653 | ||||||||||||
U.S. Agency Obligations | — | 977 | — | 977 | ||||||||||||
U.S. Treasury Obligations | — | 59,457 | — | 59,457 | ||||||||||||
Short Term Investments | 6,293 | — | — | 6,293 | ||||||||||||
Total Investments in Securities | $ | 6,293 | $ | 275,717 | $ | — | $ | 282,009 | ||||||||
Short-Term Bond Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate Obligations | $ | — | $ | 89,920 | $ | — | $ | 89,920 | ||||||||
Asset-Backed Securities | — | 40,194 | — | 40,194 | ||||||||||||
Non-Agency Mortgage Backed Obligations | — | 4,790 | — | 4,790 | ||||||||||||
U.S. Agency Mortgage Backed Obligations | — | 27,938 | — | 27,938 | ||||||||||||
U.S. Treasury Obligations | — | 19,992 | — | 19,992 | ||||||||||||
Short Term Investments | 11,202 | — | — | 11,202 | ||||||||||||
Total Investments in Securities | $ | 11,202 | $ | 181,834 | $ | — | $ | 193,036 | ||||||||
45
Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
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 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 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.
46
Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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 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 average 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, 2011 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 | % | $ | 337 | $ | 294 | $ | 43 | ||||||||
Retirement Income and Appreciation | 0.20%-0.80 | % | 215 | 181 | 34 | |||||||||||
Intermediate Bond | 0.20 | % | 281 | 115 | 166 |
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 and 0.40% of the average daily net assets of the A and C Classes of each Fund 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. Administrative Service fees for the Y, and some A and C Classes for the six months ended April 30, 2011 were less than $500.
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.
A separate Distribution Plan (the “Distribution Plan”) has been adopted pursuant to Rule 12b-1 under the Act for the A and C 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 each A Class and 1.00% of the average daily net assets of each C 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. Distribution fees for the A and some C Classes for the six-months ended April 30, 2011 were less than $500.
47
Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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, A, and C 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, 0.15% of the average daily net assets of the A and C Classes, and up to 0.375% of the average daily net assets of the Investor Class of each Fund. Service fees for the Y, A, and some C Classes for the six-months ended April 30, 2011 were less than $500.
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, 2011, the Funds did not utilize the credit facility.
Reimbursement of Expenses
The Manager voluntarily and contractually agreed to reimburse the following Funds to the extent that total operating expenses exceeded the Fund’s expense cap. Of these amounts approximately $2,000 was receivable from the Manager at April 30, 2011, for the Short-Term Bond Fund. For the six-months ended April 30, 2011, the Manager reimbursed expenses as follows:
Expense Caps | ||||||||||
3/1/10 to | 3/1/11 to | Reimbursed | Expiration of | |||||||
Fund | Class | 2/28/11 | 4/30/11 | Expenses | Reimbursements | |||||
High Yield Bond | Y* | N/A | N/A | $1,657 | 2014 | |||||
High Yield Bond | A | 1.12% | 1.12% | 1,709 | 2014 | |||||
High Yield Bond | C | 1.87% | 1.87% | 1,692 | 2014 | |||||
Retirement Income and Appreciation | Y* | N/A | N/A | 1,655 | 2014 | |||||
Retirement Income and Appreciation | A | N/A | 1.14% | 1,713 | 2014 | |||||
Retirement Income and Appreciation | C | N/A | 1.96% | 31 | 2014 | |||||
Intermediate Bond | Y | 0.65% | 0.65% | 18 | 2014 | |||||
Intermediate Bond | Investor | 0.79% | 0.79% | 588 | 2014 | |||||
Intermediate Bond | A | 0.99% | 0.99% | 111 | 2014 | |||||
Intermediate Bond | C | 1.74% | 1.74% | 146 | 2014 | |||||
Short-Term Bond | Y | 0.65% | N/A | 1,676 | 2014 | |||||
Short-Term Bond | Investor | 0.79% | 0.79% | 8,430 | 2014 | |||||
Short-Term Bond | A | 0.85% | 0.85% | 1,944 | 2014 | |||||
Short Term Bond | C | 1.60% | 1.60% | 1,929 | 2014 |
* | Voluntary reimbursement |
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. The carryover of excess expenses potentially reimbursable to the Manager but not recorded as a liability for the Intermediate Bond Fund is $10,509, and for the Short-Term Bond Fund $73,068 both expiring in 2012. During the six months ended April 30, 2011, the Funds have not recorded a liability for potential reimbursement, due to the current assessment that a reimbursement is unlikely.
48
Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
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, 2010 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, 2011 and fiscal year ended October 31, 2010 were as follows (in thousands):
Retirement Income and | ||||||||||||||||
High Yield Bond | Appreciation | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Year Ended | Ended | Year Ended | |||||||||||||
April 30, | October 31, | April 30, | October 31, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Distributions paid from: | ||||||||||||||||
Ordinary income* | ||||||||||||||||
Institutional Class | $ | 1,687 | $ | 3,870 | $ | — | $ | — | ||||||||
Y Class | — | — | 7 | 2 | ||||||||||||
Investor Class | 1,634 | 6,758 | 1,813 | 3,375 | ||||||||||||
A Class | 2 | — | 4 | — | ||||||||||||
C Class | 3 | — | 9 | 1 | ||||||||||||
AMR Class | 3,538 | 9,049 | — | — | ||||||||||||
Long-term capital gain | ||||||||||||||||
Institutional Class | — | — | — | — | ||||||||||||
Y Class | — | — | — | — | ||||||||||||
Investor Class | — | — | — | — | ||||||||||||
A Class | — | — | — | — | ||||||||||||
C Class | — | — | — | — | ||||||||||||
AMR Class | — | — | — | — | ||||||||||||
Total distributions paid | $ | 6,864 | $ | 19,677 | $ | 1,833 | $ | 3,378 | ||||||||
Intermediate Bond | Short-Term Bond | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Year Ended | Ended | Year Ended | |||||||||||||
April 30, | October 31, | April 30, | October 31, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Distributions paid from: | ||||||||||||||||
Ordinary income* | ||||||||||||||||
Institutional Class | $ | 7,973 | — | $ | 1,703 | 2 | ||||||||||
Y Class | 7 | 2 | ||||||||||||||
Investor Class | 93 | 245 | ||||||||||||||
A Class | 4 | 2 | ||||||||||||||
C Class | 6 | 2 | ||||||||||||||
Long-term capital gain | ||||||||||||||||
Institutional Class | 1,528 | 2 | — | — | ||||||||||||
Y Class | 2 | 89 | — | 945 | ||||||||||||
Investor Class | 20 | — | — | — | ||||||||||||
A Class | 1 | 1 | — | — | ||||||||||||
C Class | 2 | — | — | — | ||||||||||||
Total distributions paid | $ | 9,636 | $ | 8,904 | $ | 1,954 | $ | 4,800 | ||||||||
* | For tax purposes, short-term capital gains are considered ordinary income distributions. |
49
Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
As of April 30, 2011, the components of distributable earnings on a tax basis were as follows (in thousands):
Retirement | ||||||||||||||||
High Yield | Income and | Intermediate | Short-Term | |||||||||||||
Bond | Appreciation | Bond | Bond | |||||||||||||
Cost basis of investments for federal income tax purpose | $ | 134,982 | $ | 140,785 | $ | 273,336 | $ | 191,362 | ||||||||
Unrealized appreciation | 10,913 | 9,292 | 9,626 | 2,219 | ||||||||||||
Unrealized depreciation | (4,723 | ) | (545 | ) | (953 | ) | (545 | ) | ||||||||
Net unrealized appreciation (depreciation) | 6,190 | 8,747 | 8,673 | 1,674 | ||||||||||||
Undistributed ordinary income | 552 | 185 | 502 | 535 | ||||||||||||
Undistributed long-term gain (loss) | (2,887 | ) | (254 | ) | (178 | ) | (8,046 | ) | ||||||||
Other temporary differences | (49 | ) | (6 | ) | (1 | ) | (3 | ) | ||||||||
Distributable earnings (losses) | $ | 3,806 | $ | 8,672 | $ | 8,996 | $ | (5,840 | ) | |||||||
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, 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 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, 2011 (in thousands):
Retirement | ||||||||||||||||
High Yield | Income and | Intermediate | Short-Term | |||||||||||||
Bond | Appreciation | Bond | Bond | |||||||||||||
Paid-in-capital | $ | — | $ | (325 | ) | $ | — | $ | — | |||||||
Undistributed net investment income | (4 | ) | 182 | 281 | 772 | |||||||||||
Accumulated net realized gain (loss) | 4 | 144 | (281 | ) | (772 | ) | ||||||||||
Unrealized appreciation (depreciation) of investments and futures contracts | — | (1 | ) | — | — |
At April 30, 2011 capital loss carry forward positions for federal income tax purposes were as follows (in thousands):
Fund | 2014 | 2015 | 2016 | 2017 | 2018 | Total | ||||||||||||||||||
High Yield Bond | — | — | — | 2,887 | — | 2,887 | ||||||||||||||||||
Retirement Income and Appreciation | — | — | — | 254 | — | 254 | ||||||||||||||||||
Intermediate Bond | — | — | — | — | 178 | 178 | ||||||||||||||||||
Short-Term Bond | 2,194 | 467 | 5,198 | — | 187 | 8,046 |
The High Yield Bond and Retirement Income and Appreciation Funds utilized $6,815 and $1,494, respectively of net capital loss carryovers for the six months ended April 30, 2011.
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, 2011 were as follows (in thousands):
Retirement | ||||||||||||||||
High Yield | Income and | Intermediate | Short-Term | |||||||||||||
Bond | Appreciation | Bond | Bond | |||||||||||||
Purchases (excluding U.S. government securities) | $ | 98,797 | $ | 45,247 | $ | 130,714 | $ | 94,036 | ||||||||
Sales and maturities (excluding U.S. government securities) | 144,289 | 28,876 | 133,262 | 63,816 | ||||||||||||
Purchases of U.S. government securities | — | 11,400 | 67,375 | 4,000 | ||||||||||||
Sales and maturities of U.S. government securities | — | 6,225 | 79,375 | 2,000 |
50
Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (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, 2011
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
High Yield Bond Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 457 | $ | 4,183 | 1 | $ | 6 | 346 | $ | 3,160 | |||||||||||||||
Reinvestment of dividends | 134 | 1,230 | – | – | 173 | 1,574 | ||||||||||||||||||
Shares redeemed | (391 | ) | (3,564 | )* | – | – | * | (5,354 | ) | (49,172 | )* | |||||||||||||
Net increase (decrease) in shares outstanding | 200 | $ | 1,849 | 1 | $ | 6 | (4,835 | ) | $ | (44,438 | ) | |||||||||||||
AMR Class | A Class | C Class | ||||||||||||||||||||||
High Yield Bond Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 1,106 | $ | 10,098 | 3 | $ | 28 | 18 | $ | 162 | |||||||||||||||
Reinvestment of dividends | 387 | 3,538 | – | 2 | – | 2 | ||||||||||||||||||
Shares redeemed | (2,018 | ) | (18,305 | )* | – | (1 | )* | – | (1 | )* | ||||||||||||||
Net increase (decrease) in shares outstanding | (525 | ) | $ | (4,669 | ) | 3 | $ | 29 | 18 | $ | 163 | |||||||||||||
* | Net of Redemption Fees |
Y Class | Investor Class | A Class | C Class | |||||||||||||||||||||||||||||
Retirement Income and | ||||||||||||||||||||||||||||||||
Appreciation Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | 13 | $ | 139 | 2,781 | $ | 29,822 | 25 | $ | 265 | 16 | $ | 173 | ||||||||||||||||||||
Reinvestment of dividends | – | 7 | 159 | 1,703 | – | 4 | 1 | 7 | ||||||||||||||||||||||||
Shares redeemed | – | (3 | ) | (921 | ) | (9,877 | ) | – | (1 | ) | (16 | ) | (165 | ) | ||||||||||||||||||
Net increase in shares outstanding | 13 | $ | 143 | 2,019 | $ | 21,648 | 25 | $ | 268 | 1 | $ | 15 | ||||||||||||||||||||
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Intermediate Bond Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 2,845 | $ | 30,574 | 3 | $ | 26 | 39 | $ | 413 | |||||||||||||||
Reinvestment of dividends | 890 | 9,496 | 1 | 9 | 10 | 105 | ||||||||||||||||||
Shares redeemed | (3,736 | ) | (40,217 | ) | (35 | ) | (368 | ) | (83 | ) | (885 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | (1 | ) | $ | (147 | ) | (31 | ) | $ | (333 | ) | (34 | ) | $ | (367 | ) | |||||||||
A Class | C Class | |||||||||||||||
Intermediate Bond Fund | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold | 40 | $ | 426 | – | $ | – | ||||||||||
Reinvestment of dividends | – | 1 | – | 3 | ||||||||||||
Shares redeemed | (5 | ) | (59 | ) | (9 | ) | (97 | ) | ||||||||
Net increase (decrease) in shares outstanding | 35 | $ | 368 | (9 | ) | $ | (94 | ) | ||||||||
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Short-Term Bond Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 5,928 | $ | 52,119 | 33 | $ | 290 | 1,771 | $ | 15,602 | |||||||||||||||
Reinvestment of dividends | 193 | 1,701 | – | 2 | 26 | 227 | ||||||||||||||||||
Shares redeemed | (2,665 | ) | (23,470 | ) | – | (1 | ) | (826 | ) | (7,276 | ) | |||||||||||||
Net increase in shares outstanding | 3,456 | $ | 30,350 | 33 | $ | 291 | 971 | $ | 8,553 | |||||||||||||||
51
Table of Contents
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Notes to Financial Statements
April 30, 2011 (Unaudited)
A Class | C Class | |||||||||||||||
Short-Term Bond Fund | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold | 175 | $ | 1,540 | 57 | $ | 499 | ||||||||||
Reinvestment of dividends | – | 1 | – | 1 | ||||||||||||
Shares redeemed | (24 | ) | (213 | ) | (26 | ) | (228 | ) | ||||||||
Net increase in shares outstanding | 151 | $ | 1,328 | 31 | $ | 272 | ||||||||||
Period Ended October 31, 2010
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
High Yield Bond Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 1,192 | $ | 10,318 | – | $ | 1 | 10,613 | $ | 91,795 | |||||||||||||||
Reinvestment of dividends | 228 | 1,978 | – | – | 767 | 6,656 | ||||||||||||||||||
Shares redeemed | (2,453 | ) | (21,256 | )* | – | – | * | (16,175 | ) | (139,538 | )* | |||||||||||||
Net increase (decrease) in shares outstanding | (1,033 | ) | $ | (8,960 | ) | – | $ | 1 | (4,795 | ) | $ | (41,087 | ) | |||||||||||
AMR Class | A Class | C Class | ||||||||||||||||||||||
High Yield Bond Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 17,993 | $ | 154,205 | 4 | $ | 39 | 4 | $ | 36 | |||||||||||||||
Reinvestment of dividends | 1,042 | 9,049 | – | – | – | – | ||||||||||||||||||
Shares redeemed | (20,103 | ) | (174,325 | )* | – | – | * | – | – | * | ||||||||||||||
Net increase (decrease) in shares outstanding | (1,068 | ) | $ | (11,071 | ) | 4 | $ | 39 | 4 | $ | 36 | |||||||||||||
* | Net of Redemption Fees |
Y Class | Investor Class | A Class | C Class | |||||||||||||||||||||||||||||
Retirement Income and | ||||||||||||||||||||||||||||||||
Appreciation Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | 34 | $ | 357 | 3,818 | $ | 39,811 | 15 | $ | 164 | 96 | $ | 1,033 | ||||||||||||||||||||
Reinvestment of dividends | – | 2 | 262 | 2,724 | – | – | – | 1 | ||||||||||||||||||||||||
Shares redeemed | – | – | (1,567 | ) | (16,368 | ) | – | – | – | – | ||||||||||||||||||||||
Net increase in shares outstanding | 34 | $ | 359 | 2,513 | $ | 26,167 | 15 | $ | 164 | 96 | $ | 1,034 | ||||||||||||||||||||
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Intermediate Bond Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 19,109 | $ | 208,277 | 34 | $ | 381 | 163 | $ | 1,767 | |||||||||||||||
Reinvestment of dividends | 812 | 8,811 | – | 2 | 8 | 88 | ||||||||||||||||||
Shares redeemed | (13,473 | ) | (147,900 | ) | – | (2 | ) | (33 | ) | (359 | ) | |||||||||||||
Net increase in shares outstanding | 6,448 | $ | 69,188 | 34 | $ | 381 | 138 | $ | 1,495 | |||||||||||||||
A Class | C Class | |||||||||||||||
Intermediate Bond Fund | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold | 4 | $ | 46 | 29 | $ | 326 | ||||||||||
Reinvestment of dividends | – | – | – | – | ||||||||||||
Shares redeemed | – | – | – | – | ||||||||||||
Net increase in shares outstanding | 4 | $ | 46 | 29 | $ | 326 | ||||||||||
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Short-Term Bond Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold | 3,254 | $ | 28,766 | 6 | $ | 51 | 6,276 | $ | 55,504 | |||||||||||||||
Reinvestment of dividends | 435 | 3,852 | – | – | 99 | 873 | ||||||||||||||||||
Shares redeemed | (3,048 | ) | (26,963 | ) | – | – | (7,209 | ) | (63,742 | ) | ||||||||||||||
Net increase (decrease) in shares outstanding | 641 | $ | 5,655 | 6 | $ | 51 | (834 | ) | $ | (7,365 | ) | |||||||||||||
52
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American Beacon Funds
Notes to Financial Statements - Continued
April 30, 2011 (Unaudited)
Notes to Financial Statements - Continued
April 30, 2011 (Unaudited)
A Class | C Class | |||||||||||||||
Short-Term Bond Fund | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold | 5 | $ | 44 | – | $ | 1 | ||||||||||
Reinvestment of dividends | – | – | – | – | ||||||||||||
Shares redeemed | – | – | – | – | ||||||||||||
Net increase (decrease) in shares outstanding | 5 | $ | 44 | – | $ | 1 | ||||||||||
53
Table of Contents
American Beacon Funds High Yield Bond Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||||||||||||||||||
Six | Six | Year | ||||||||||||||||||||||||||||||||||||||
Months | Six Months | March 01 | Months | Ended | ||||||||||||||||||||||||||||||||||||
Ended | Ended | to | Ended | October | ||||||||||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | April 30, | October | April 30, | 31, | |||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008A | 2007 | 2006B | 2011 | 31, 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 9.05 | $ | 8.42 | $ | 6.77 | $ | 10.11 | $ | 10.20 | $ | 10.22 | $ | 9.06 | $ | 8.63 | $ | 9.06 | $ | 8.42 | ||||||||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.37 | 0.75 | 0.79 | 0.78 | 0.77 | 0.88 | 0.37 | 0.50 | 0.35 | 0.73 | ||||||||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 0.23 | 0.63 | 1.66 | (3.34 | ) | (0.09 | ) | 0.09 | 0.24 | 0.43 | 0.24 | 0.64 | ||||||||||||||||||||||||||||
Total income (loss) from investment operations | 0.60 | 1.38 | 2.45 | (2.56 | ) | 0.68 | 0.97 | 0.61 | 0.93 | 0.59 | 1.37 | |||||||||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.36 | ) | (0.75 | ) | (0.80 | ) | (0.78 | ) | (0.77 | ) | (0.88 | ) | (0.37 | ) | (0.50 | ) | (0.35 | ) | (0.73 | ) | ||||||||||||||||||||
Distributions from net realized gains on securities | — | — | — | — | — | (0.11 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Total distributions | (0.36 | ) | (0.75 | ) | (0.80 | ) | (0.78 | ) | (0.77 | ) | (0.99 | ) | (0.37 | ) | (0.50 | ) | (0.35 | ) | (0.73 | ) | ||||||||||||||||||||
Redemption fees added to beneficial interests | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net asset value, end of period | $ | 9.29 | $ | 9.05 | $ | 8.42 | $ | 6.77 | $ | 10.11 | $ | 10.20 | $ | 9.30 | $ | 9.06 | $ | 9.30 | $ | 9.06 | ||||||||||||||||||||
Total return C | 6.81 | %D | 17.17 | % | 39.06 | % | (27.03 | )% | 6.85 | % | 8.78 | % | 6.83 | %D | 11.17 | %D | 6.65 | %D | 17.00 | % | ||||||||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 44,418 | $ | 41,459 | $ | 47,254 | $ | 62,138 | $ | 114,911 | $ | 231,693 | $ | 7 | $ | 1 | $ | 10,613 | $ | 54,142 | ||||||||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||||||||||||||
Expenses, net of waivers | 0.82 | % | 0.79 | % | 0.79 | % | 0.85 | % | 0.85 | % | 0.85 | % | 0.85 | % | 0.82 | %E | 1.07 | % | 1.04 | % | ||||||||||||||||||||
Expenses, before waivers | 0.82 | % | 0.79 | % | 0.79 | % | 0.85 | % | 0.86 | % | 0.85 | % | 130.81 | % | 0.82 | %E | 1.07 | % | 1.04 | % | ||||||||||||||||||||
Net investment income, net of waivers | 8.03 | % | 8.69 | % | 11.46 | % | 8.38 | % | 7.55 | % | 7.55 | % | 7.89 | % | 8.53 | %E | 7.80 | % | 8.48 | % | ||||||||||||||||||||
Net investment income (loss), before waivers | 8.03 | % | 8.69 | % | 11.46 | % | 8.38 | % | 7.54 | % | 7.55 | % | (122.07 | )% | 8.53 | %E | 7.80 | % | 8.48 | % | ||||||||||||||||||||
Portfolio turnover rate | 61 | %D | 176 | % | 212 | % | 157 | % | 92 | % | 88 | % | 61 | %D | 176 | %F | 61 | %D | 176 | % |
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 | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
D | Not annualized. | |
E | Annualized. | |
F | Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010. | |
G | Portfolio turnover rate is for the period from November 1, 2006 through October 31, 2007. |
54
Table of Contents
AMR Class | A Class | C Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
Six | Six | Six | ||||||||||||||||||||||||||||||||||||||||||||||||||
Months | September | Months | May 17 | Months | September | |||||||||||||||||||||||||||||||||||||||||||||||
Ended | 04 to | Ended | to | Ended | 01 to | |||||||||||||||||||||||||||||||||||||||||||||||
April 30, | Year Ended October 31, | October | April 30, | October | April 30, | October | ||||||||||||||||||||||||||||||||||||||||||||||
2009 | 2008A | 2007 | 2006B | 2011 | 2010 | 2009 | 2008A | 31,2007 | 2011 | 31, 2010 | 2011 | 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 6.77 | $ | 10.11 | $ | 10.21 | $ | 10.22 | $ | 9.06 | $ | 8.42 | $ | 6.77 | $ | 10.11 | $ | 9.94 | $ | 9.08 | $ | 8.67 | $ | 9.05 | $ | 8.68 | |||||||||||||||||||||||||||
0.78 | 0.75 | 0.75 | 0.85 | 0.38 | 0.78 | 0.81 | 0.80 | 0.12 | 0.35 | 0.32 | 0.32 | 0.09 | ||||||||||||||||||||||||||||||||||||||||
1.65 | (3.34 | ) | (0.10 | ) | 0.10 | 0.24 | 0.63 | 1.65 | (3.34 | ) | 0.17 | 0.23 | 0.41 | 0.24 | 0.37 | |||||||||||||||||||||||||||||||||||||
2.43 | (2.59 | ) | 0.65 | 0.95 | 0.62 | 1.41 | 2.46 | (2.54 | ) | 0.29 | 0.58 | 0.73 | 0.56 | 0.46 | ||||||||||||||||||||||||||||||||||||||
(0.78 | ) | (0.75 | ) | (0.75 | ) | (0.85 | ) | (0.38 | ) | (0.77 | ) | (0.81 | ) | (0.80 | ) | (0.12 | ) | (0.35 | ) | (0.32 | ) | (0.32 | ) | (0.09 | ) | |||||||||||||||||||||||||||
— | — | — | (0.11 | ) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
(0.78 | ) | (0.75 | ) | (0.75 | ) | (0.96 | ) | (0.38 | ) | (0.77 | ) | (0.81 | ) | (0.80 | ) | (0.12 | ) | (0.35 | ) | (0.32 | ) | (0.32 | ) | (0.09 | ) | |||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
$ | 8.42 | $ | 6.77 | $ | 10.11 | $ | 10.21 | $ | 9.30 | $ | 9.06 | $ | 8.42 | $ | 6.77 | $ | 10.11 | $ | 9.31 | $ | 9.08 | $ | 9.29 | $ | 9.05 | |||||||||||||||||||||||||||
38.70 | % | (27.24 | )% | 6.52 | % | 8.63 | % | 6.94%D | 17.59 | % | 39.41 | % | (26.84 | )% | 2.94%D | 6.52%D | 8.66%D | 6.27%D | 5.31%D | |||||||||||||||||||||||||||||||||
$ | 90,736 | $ | 13,949 | $ | 28,758 | $ | 80,284 | $ | 87,494 | $ | 89,992 | $ | 92,659 | $ | 44,060 | $ | 82,322 | $ | 70 | $ | 40 | $ | 202 | $ | 37 | |||||||||||||||||||||||||||
1.01 | % | 1.10 | % | 1.08 | % | 1.08 | % | 0.57 | % | 0.54 | % | 0.53 | % | 0.58 | % | 0.61 | %E | 1.12 | % | 1.12 | %E | 1.82 | % | 1.87 | %E | |||||||||||||||||||||||||||
1.01 | % | 1.10 | % | 1.08 | % | 1.08 | % | 0.57 | % | 0.54 | % | 0.53 | % | 0.58 | % | 0.61 | %E | 8.91 | % | 1.30 | %E | 5.61 | % | 2.29 | %E | |||||||||||||||||||||||||||
9.36 | % | 8.06 | % | 7.32 | % | 7.33 | % | 8.29 | % | 8.91 | % | 10.34 | % | 8.64 | % | 7.54 | %E | 7.70 | % | 7.11 | %E | 6.77 | % | 5.40 | %E | |||||||||||||||||||||||||||
9.36 | % | 8.06 | % | 7.32 | % | 7.33 | % | 8.29 | % | 8.91 | % | 10.34 | % | 8.64 | % | 7.54 | %E | (0.09 | )% | 6.93 | %E | 2.98 | % | 4.97 | %E | |||||||||||||||||||||||||||
212 | % | 157 | % | 92 | % | 88 | % | 61 | %D | 176 | % | 212 | % | 157 | % | 92 | %G | 61 | %D | 176 | %F | 61 | %D | 176 | %F |
55
Table of Contents
American Beacon Funds Retirement Income and Appreciation Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
Y Class | Investor Class | |||||||||||||||||||||||||||
Six | Six | |||||||||||||||||||||||||||
Months | March 01 | Months | ||||||||||||||||||||||||||
Ended | to | Ended | ||||||||||||||||||||||||||
April 30, | October | April 30, | Year Ended October 31, | |||||||||||||||||||||||||
2011 | 31, 2010 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.80 | $ | 10.31 | $ | 10.81 | $ | 10.25 | $ | 8.80 | $ | 10.50 | $ | 10.25 | ||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.13 | 0.20 | 0.16 | 0.36 | 0.32 | 0.41 | 0.36 | |||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 0.11 | 0.49 | 0.07 | 0.51 | 1.53 | (1.39 | ) | 0.32 | ||||||||||||||||||||
Total income (loss) from investment operations | 0.24 | 0.69 | 0.23 | 0.87 | 1.85 | (0.98 | ) | 0.68 | ||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.16 | ) | (0.20 | ) | (0.15 | ) | (0.31 | ) | (0.40 | ) | (0.49 | ) | (0.42 | ) | ||||||||||||||
Distributions from net realized gains on securities | — | — | — | — | — | (0.23 | ) | (0.01 | ) | |||||||||||||||||||
Return of capital | — | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions | (0.16 | ) | (0.20 | ) | (0.15 | ) | (0.31 | ) | (0.40 | ) | (0.72 | ) | (0.43 | ) | ||||||||||||||
Net asset value, end of period | $ | 10.88 | $ | 10.80 | $ | 10.89 | $ | 10.81 | $ | 10.25 | $ | 8.80 | $ | 10.50 | ||||||||||||||
Total return A | 2.24 | %B | 6.78 | %B | 2.12 | %B | 8.60 | % | 21.50 | % | (10.02 | )% | 6.75 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 516 | $ | 367 | $ | 148,952 | $ | 126,022 | $ | 93,727 | $ | 100,469 | $ | 99,789 | ||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||
Expenses | 0.83 | % | 0.80 | %C | 1.10 | % | 1.08 | % | 1.01 | % | 0.92 | % | 0.94 | % | ||||||||||||||
Expenses, before waivers | 1.54 | % | 0.80 | %C | 1.10 | % | 1.08 | % | 1.01 | % | 0.92 | % | 0.94 | % | ||||||||||||||
Net investment income | 2.44 | % | 2.74 | %C | 2.19 | % | 2.79 | % | 3.86 | % | 3.64 | % | 3.69 | % | ||||||||||||||
Net investment income, before waivers | 1.74 | % | 2.74 | %C | 2.19 | % | 2.79 | % | 3.86 | % | 3.64 | % | 3.69 | % | ||||||||||||||
Portfolio turnover rate | 22 | %B | 51 | %D | 22 | %B | 51 | % | 53 | % | 76 | % | 103 | % |
A | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
B | Not annualized. | |
C | Annualized. | |
D | Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010. |
56
Table of Contents
A Class | C Class | |||||||||||||||||||
Six | Six | |||||||||||||||||||
Months | May 17 | Months | September | |||||||||||||||||
Ended | to | Ended | 01 to | |||||||||||||||||
April 30, | October | April 30, | October | |||||||||||||||||
2006 | 2011 | 31, 2010 | 2011 | 31, 2010 | ||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||
$ | 9.98 | $ | 10.81 | $ | 10.37 | $ | 10.82 | $ | 10.61 | |||||||||||
0.33 | 0.11 | 0.13 | 0.07 | 0.03 | ||||||||||||||||
0.29 | 0.11 | 0.44 | 0.11 | 0.20 | ||||||||||||||||
0.62 | 0.22 | 0.57 | 0.18 | 0.23 | ||||||||||||||||
(0.35 | ) | (0.13 | ) | (0.13 | ) | (0.09 | ) | (0.02 | ) | |||||||||||
— | — | — | — | — | ||||||||||||||||
— | — | — | — | — | ||||||||||||||||
(0.35 | ) | (0.13 | ) | (0.13 | ) | (0.09 | ) | (0.02 | ) | |||||||||||
$ | 10.25 | $ | 10.90 | $ | 10.81 | $ | 10.91 | $ | 10.82 | |||||||||||
6.36 | % | 2.04 | %B | 5.52 | %B | 1.78 | %B | 2.19 | %B | |||||||||||
$ | 125,915 | $ | 439 | $ | 166 | $ | 1,058 | $ | 1,035 | |||||||||||
0.93 | % | 1.19 | % | 1.14 | %C | 1.98 | % | 1.96 | %C | |||||||||||
0.93 | % | 2.15 | % | 1.20 | %C | 1.99 | % | 2.33 | %C | |||||||||||
3.21 | % | 2.05 | % | 2.10 | %C | 1.31 | % | 1.77 | %C | |||||||||||
3.21 | % | 1.09 | % | 2.03 | %C | 1.30 | % | 1.40 | %C | |||||||||||
65 | % | 22 | %B | 51 | %D | 22 | %B | 51 | %D |
57
Table of Contents
American Beacon Intermediate Bond Fund
Financial Highlights
(For a share outstanding throughout the period)
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, | ||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2011 | ||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.10 | $ | 10.69 | $ | 9.61 | $ | 10.10 | $ | 10.02 | $ | 10.01 | $ | 11.10 | ||||||||||||||
Income from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.17 | 0.39 | 0.46 | 0.50 | 0.50 | 0.46 | 0.15 | E | ||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (0.18 | ) | 0.40 | 1.07 | (0.51 | ) | 0.07 | 0.02 | (0.14 | ) | ||||||||||||||||||
Total income (loss) from investment operations | (0.01 | ) | 0.79 | 1.53 | (0.01 | ) | 0.57 | 0.48 | 0.01 | |||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.18 | ) | (0.38 | ) | (0.45 | ) | (0.48 | ) | (0.49 | ) | (0.47 | ) | (0.16 | ) | ||||||||||||||
Distributions from net realized gains on securities | (0.19 | ) | — | — | — | — | — | (0.19 | ) | |||||||||||||||||||
Total distributions | (0.37 | ) | (0.38 | ) | (0.45 | ) | (0.48 | ) | (0.49 | ) | (0.47 | ) | (0.35 | ) | ||||||||||||||
Net asset value, end of period | $ | 10.72 | $ | 11.10 | $ | 10.69 | $ | 9.61 | $ | 10.10 | $ | 10.02 | $ | 10.76 | ||||||||||||||
Total return A | (0.07) | %B | 7.56 | % | 16.17 | % | (0.26 | )% | 5.83 | % | 4.96 | % | 0.14 | %B | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 280,673 | $ | 290,734 | $ | 210,983 | $ | 147,634 | $ | 109,674 | $ | 97,319 | $ | 33 | ||||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||||||
Expenses, net of waivers | 0.32 | % | 0.33 | % | 0.32 | % | 0.30 | % | 0.34 | % | 0.35 | % | 0.65 | % | ||||||||||||||
Expenses, before waivers | 0.32 | % | 0.33 | % | 0.32 | % | 0.30 | % | 0.34 | % | 0.35 | % | 0.67 | % | ||||||||||||||
Net investment income, net of waivers | 3.17 | % | 3.39 | % | 4.32 | % | 4.70 | % | 4.86 | % | 4.64 | % | 2.80 | % | ||||||||||||||
Net investment income, before waivers | 3.17 | % | 3.39 | % | 4.31 | % | 4.70 | % | 4.86 | % | 4.64 | % | 2.78 | % | ||||||||||||||
Portfolio turnover rate | 47 | %B | 96 | % | 157 | % | 105 | % | 85 | % | 122 | % | 47 | %B |
A | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
B | Not annualized. | |
C | Annualized. | |
D | Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010. | |
E | 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. | |
F | Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009. |
58
Table of Contents
Investor Class | A Class | C Class | ||||||||||||||||||||||||||||
Six | Six | Six | ||||||||||||||||||||||||||||
March | Months | Year | March | Months | May 17 | Months | September | |||||||||||||||||||||||
01 to | Ended | Ended | 02 to | Ended | to | Ended | 01 to | |||||||||||||||||||||||
October 31, | April 30, | October | October | April 30, | October | April 30, | October | |||||||||||||||||||||||
2010 | 2011 | 31, 2010 | 31, 2009 | 2011 | 31, 2010 | 2011 | 31, 2010 | |||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||
$ | 10.69 | $ | 11.08 | $ | 10.68 | $ | 10.14 | $ | 11.07 | $ | 10.74 | $ | 11.08 | $ | 11.05 | |||||||||||||||
0.23 | 0.14 | 0.33 | 0.27 | 0.14 | 0.13 | 0.10E | 0.03 | |||||||||||||||||||||||
0.41 | (0.18 | ) | 0.41 | 0.54 | (0.19 | ) | 0.33 | (0.19 | ) | 0.03 | ||||||||||||||||||||
0.64 | (0.04 | ) | 0.74 | 0.81 | (0.05 | ) | 0.46 | (0.09 | ) | 0.06 | ||||||||||||||||||||
(0.23 | ) | (0.15 | ) | (0.34 | ) | (0.27 | ) | (0.14 | ) | (0.13 | ) | (0.10 | ) | (0.03 | ) | |||||||||||||||
— | (0.19 | ) | — | — | (0.19 | ) | — | (0.19 | ) | — | ||||||||||||||||||||
(0.23 | ) | (0.34 | ) | (0.34 | ) | (0.27 | ) | (0.33 | ) | (0.13 | ) | (0.29 | ) | (0.03 | ) | |||||||||||||||
$ | 11.10 | $ | 10.70 | $ | 11.08 | $ | 10.68 | $ | 10.69 | $ | 11.07 | $ | 10.70 | $ | 11.08 | |||||||||||||||
6.03 | %B | (0.31 | )%B | 7.01 | % | 8.05 | %B | (0.41 | )%B | 4.31 | %B | (0.76 | )%B | 0.56 | %B | |||||||||||||||
$ | 382 | $ | 3,329 | $ | 3,829 | $ | 2,213 | $ | 414 | $ | 46 | $ | 218 | $ | 325 | |||||||||||||||
0.64 | %C | 0.79 | % | 0.76 | % | 0.81 | %C | 0.98 | % | 0.95 | %C | 1.71 | % | 1.74 | %C | |||||||||||||||
0.67 | %C | 0.82 | % | 0.83 | % | 1.22 | %C | 1.07 | % | 1.05 | %C | 1.83 | % | 2.09 | %C | |||||||||||||||
2.60 | %C | 2.68 | % | 2.95 | % | 3.74 | %C | 2.50 | % | 2.25 | %C | 1.78 | % | 1.23 | %C | |||||||||||||||
2.58 | %C | 2.64 | % | 2.88 | % | 3.33 | %C | 2.41 | % | 2.15 | %C | 1.66 | % | 0.88 | %C | |||||||||||||||
96 | %D | 47 | %B | 96 | % | 157 | %F | 47 | %B | 96 | %D | 47 | %B | 96 | %D |
59
Table of Contents
American Beacon Short-Term Bond Fund
Financial Highlights
(For a share outstanding throughout the period)
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | ||||||||||||||||||||||||
Six | ||||||||||||||||||||||||
Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
April 30, | Year Ended October 31, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 8.89 | $ | 8.83 | $ | 8.58 | $ | 8.79 | $ | 8.74 | $ | 8.75 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.20 | 0.23 | 0.22 | A | 0.35 | A | 0.39 | A | 0.32 | A | ||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (0.18 | ) | 0.10 | 0.33 | (0.15 | ) | 0.09 | 0.07 | ||||||||||||||||
Total income (loss) from investment operations | 0.02 | 0.33 | 0.55 | 0.20 | 0.48 | 0.39 | ||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Dividends from net investment income | (0.11 | ) | (0.27 | ) | (0.30 | ) | (0.41 | ) | (0.43 | ) | (0.40 | ) | ||||||||||||
Distributions from net realized gains on securities | — | — | — | — | — | — | ||||||||||||||||||
Total distributions | (0.11 | ) | (0.27 | ) | (0.30 | ) | (0.41 | ) | (0.43 | ) | (0.40 | ) | ||||||||||||
Net asset value, end of period | $ | 8.80 | $ | 8.89 | $ | 8.83 | $ | 8.58 | $ | 8.79 | $ | 8.74 | ||||||||||||
Total return B | 0.24 | %C | 3.78 | % | 6.56 | % | 2.21 | % | 5.61 | % | 4.56 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 160,507 | $ | 131,314 | $ | 124,791 | $ | 255,725 | $ | 89,427 | $ | 73,417 | ||||||||||||
Ratios to average net assets (annualized): | ||||||||||||||||||||||||
Expenses, net of waivers | 0.31 | % | 0.35 | % | 0.33 | % | 0.31 | % | 0.37 | % | 0.35 | % | ||||||||||||
Expenses, before waivers | 0.31 | % | 0.35 | % | 0.33 | % | 0.31 | % | 0.37 | % | 0.35 | % | ||||||||||||
Net investment income (loss), net of waivers | 1.99 | % | 2.27 | % | 2.62 | % | 3.75 | % | 4.48 | % | 3.64 | % | ||||||||||||
Net investment income (loss), before waivers | 1.99 | % | 2.27 | % | 2.61 | % | 3.75 | % | 4.48 | % | 3.64 | % | ||||||||||||
Portfolio turnover rate | 40 | %C | 60 | % | 140 | % | 21 | % | 40 | % | 48 | % |
A | 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. | |
B | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. | |
C | Not annualized. | |
D | Annualized. | |
E | Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010. |
60
Table of Contents
Y Class | Investor Class | A Class | C Class | |||||||||||||||||||||||||||||||||||||||||||
Six | Six | Six | Six | |||||||||||||||||||||||||||||||||||||||||||
Months | March | Months | Months | May | Months | September | ||||||||||||||||||||||||||||||||||||||||
Ended | 01 to | Ended | Ended | 17 to | Ended | 01 to | ||||||||||||||||||||||||||||||||||||||||
April 30, | October 31, | April 30, | Year Ended October 31, | April 30, | October 31, | April 30, | October 31, | |||||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||
$ | 8.90 | $ | 8.84 | $ | 8.89 | $ | 8.84 | $ | 8.59 | $ | 8.81 | $ | 8.76 | $ | 8.77 | $ | 8.89 | $ | 8.84 | $ | 8.90 | $ | 8.88 | |||||||||||||||||||||||
0.10 | 0.15 | 0.17 | 0.08 | 0.20 | A | 0.29 | A | 0.35 | A | 0.27 | A | 0.09 | 0.09 | 0.10 | (0.04 | ) | ||||||||||||||||||||||||||||||
(0.08 | ) | 0.08 | (0.16 | ) | 0.21 | 0.34 | (0.15 | ) | 0.09 | 0.07 | (0.09 | ) | 0.07 | (0.13 | ) | 0.08 | ||||||||||||||||||||||||||||||
0.02 | 0.23 | 0.01 | 0.29 | 0.54 | 0.14 | 0.44 | 0.34 | 0.00 | 0.16 | (0.03 | ) | 0.04 | ||||||||||||||||||||||||||||||||||
(0.10 | ) | (0.17 | ) | (0.09 | ) | (0.24 | ) | (0.29 | ) | (0.36 | ) | (0.39 | ) | (0.35 | ) | (0.09 | ) | (0.11 | ) | (0.06 | ) | (0.02 | ) | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
(0.10 | ) | (0.17 | ) | (0.09 | ) | (0.24 | ) | (0.29 | ) | (0.36 | ) | (0.39 | ) | (0.35 | ) | (0.09 | ) | (0.11 | ) | (0.06 | ) | (0.02 | ) | |||||||||||||||||||||||
$ | 8.82 | $ | 8.90 | $ | 8.81 | $ | 8.89 | $ | 8.84 | $ | 8.59 | $ | 8.81 | $ | 8.76 | $ | 8.80 | $ | 8.89 | $ | 8.81 | $ | 8.90 | |||||||||||||||||||||||
0.18 | %C | 2.55 | %C | 0.13 | %C | 3.33 | % | 6.34 | % | 1.54 | % | 5.08 | % | 4.01 | % | (0.05) | %C | 1.78 | %C | (0.37) | %C | 0.48 | %C | |||||||||||||||||||||||
$ | 343 | $ | 51 | $ | 31,514 | $ | 23,175 | $ | 30,402 | $ | 7,733 | $ | 2,976 | $ | 7,189 | $ | 1,371 | $ | 44 | $ | 272 | $ | 1 | |||||||||||||||||||||||
0.65 | % | 0.64 | %D | 0.76 | % | 0.67 | % | 0.54 | % | 0.85 | % | 0.87 | % | 0.88 | % | 0.83 | % | 0.81 | %D | 1.58 | % | 1.60 | %D | |||||||||||||||||||||||
2.38 | % | 0.65 | %D | 0.83 | % | 0.86 | % | 0.85 | % | 0.88 | % | 0.98 | % | 0.90 | % | 2.49 | % | 1.02 | %D | 3.05 | % | 2.28 | %D | |||||||||||||||||||||||
1.51 | % | 1.47 | %D | 1.52 | % | 1.94 | % | 2.20 | % | 3.19 | % | 3.91 | % | 3.10 | % | 1.24 | % | 0.69 | %D | 0.64 | % | (2.88) | %D | |||||||||||||||||||||||
(0.22 | )% | 1.45 | %D | 1.45 | % | 1.75 | % | 1.89 | % | 3.16 | % | 3.81 | % | 3.08 | % | (0.43 | )% | 0.49 | %D | (0.83 | )% | (3.57) | %D | |||||||||||||||||||||||
40 | %C | 60 | %E | 40 | %C | 60 | % | 140 | % | 21 | % | 40 | % | 48 | % | 40 | %C | 60 | %E | 40 | %C | 60 | %E |
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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:
7 | 8 | |
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 twenty 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 or Summary Prospectus.
American Beacon Fund, 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 04/11
62
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ITEM 1. | REPORTS TO STOCKHOLDERS. |
ITEM 2. | CODE OF ETHICS. |
The Trust did not amend the code of ethics that applies to its principal executive and financial officers (the “Code”) nor did it 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.
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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) Not applicable.
(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 | ||||
By | /s/ Gene L. Needles, Jr. | |||
Gene L. Needles, Jr. | ||||
President American Beacon Funds | ||||
Date: July 7, 2011
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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.
By | /s/ Gene L. Needles, Jr. | |||
Gene L. Needles, Jr. | ||||
President American Beacon Funds | ||||
Date: July 7, 2011
By | /s/ Melinda G. Heika | |||
Melinda G. Heika | ||||
Treasurer American Beacon Funds | ||||
Date: July 7, 2011