UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-4984
AMERICAN BEACON FUNDS
(Exact name of registrant as specified in charter)
4151 Amon Carter Boulevard, MD 2450
Fort Worth, Texas 76155
(Address of principal executive offices)-(Zip code)
GENE L. NEEDLES, JR., PRESIDENT
4151 Amon Carter Boulevard, MD 2450
Fort Worth, Texas 76155
(Name and address of agent for service)
Registrants telephone number, including area code: (817) 391-6100
Date of fiscal year end: October 31, 2012
Date of reporting period: April 30, 2012
ITEM 1. REPORTS TO STOCKHOLDERS.
About American Beacon Advisors |
Contents |
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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. |
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Back Cover
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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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Any opinions herein, including forecasts, reflect our judgment as of the end of the reporting period and are subject to change. Each advisors strategies and the Funds portfolio composition will change depending on economic and market conditions. This report is not a complete analysis of market conditions and therefore, should not be relied upon as investment advice. Although economic and market information has been compiled from reliable sources, American Beacon Advisors, Inc. makes no representation as to the completeness or accuracy of the statements contained herein.
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The intrinsic value of stocks selected for the Fund may never be realized by the market, and the price of value stocks may go down. While investing in value stocks may limit downside risk over time, the Fund may produce more modest gains than riskier stock funds as a trade-off for this potentially lower risk.
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American Beacon Funds | April 30, 2012 |
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The market volatility that characterized so much of 2011 continued through November and December but eased in the first months of 2012. Among other things, positive economic data in the U.S. and action in Europe to address Greeces debt helped reassure investors and the broad market through April.
Nonetheless, the last six months have highlighted the potential benefits to long-term investors of owning funds that are able to participate in the markets upward movement, while seeking to protect value when the markets turn down. |
For the six-month period ended April 30, 2012:
- American Beacon Large Cap Value Fund (Institutional Class) returned 13.35%.
With continued uncertainty in the European Union and an upcoming Presidential election, we may again see further market gyrations in the months to come. Regardless of headlines, American Beacon remains focused on seeking opportunities and meeting market challenges to deliver the type of consistency in performance and service that our shareholders value.
Thank you for your continued investment in the American Beacon Funds. For additional information about the Funds or to access your account information, please visit our website at www.americanbeaconfunds.com.
Best Regards, |
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Gene L. Needles, Jr. President |
American Beacon Funds |
1
Domestic Equity Market Overview
April 30, 2012 (Unaudited)
2
American Beacon Large Cap Value FundSM
Performance Overview
April 30, 2012 (Unaudited)
3 |
American Beacon Large Cap Value FundSM
Performance Overview
April 30, 2012 (Unaudited)
4
American Beacon Large Cap Value FundSM
Fund Expenses
April 30, 2012 (Unaudited)
5 |
American Beacon Large Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
6
American Beacon Large Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
7
American Beacon Large Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
8
American Beacon Large Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Futures Contracts Open on April 30, 2012: |
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Description | Type | Number of Contracts |
Expiration Date | Contract Value | Unrealized Appreciation (Depreciation) |
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S&P 500 Mini E Index Future |
Long | 3,443 | June, 2012 | $ | 239,908 | $ | 1,487 | |||||||
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$ | 239,908 | $ | 1,487 | |||||||||||
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See accompanying notes
9
American Beacon Large Cap Value FundSM
Statement of Assets and Liabilities
April 30, 2012 (in thousands, except share and per share amounts) (Unaudited)
Assets: |
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Investments in unaffiliated securities, at fair value A |
$ | 8,520,799 | ||
Investments in affiliated securities, at fair value B |
10,750 | |||
Deposit with brokers for futures contracts |
11,812 | |||
Receivable for investments sold |
19,705 | |||
Dividends and interest receivable |
7,857 | |||
Receivable for fund shares sold |
8,285 | |||
Receivable for tax reclaims |
656 | |||
Prepaid expenses |
159 | |||
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Total assets |
8,580,023 | |||
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Liabilities: |
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Payable for investments purchased |
32,967 | |||
Payable for variation margin from open futures contracts |
820 | |||
Payable for fund shares redeemed |
11,597 | |||
Management and investment advisory fees payable (Note 2) |
5,629 | |||
Administrative service and service fees payable (Note 2) |
2,622 | |||
Professional fees payable |
16 | |||
Payable for prospectus and shareholder reports |
485 | |||
Trustees fees payable |
257 | |||
Other liabilities |
420 | |||
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Total liabilities |
54,813 | |||
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Net assets |
$ | 8,525,210 | ||
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Analysis of Net Assets: |
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Paid-in-capital |
9,158,649 | |||
Undistributed net investment income |
42,504 | |||
Accumulated net realized loss |
(1,375,111 | ) | ||
Unrealized appreciation of investments and futures contracts |
699,168 | |||
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Net assets |
$ | 8,525,210 | ||
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Shares outstanding (no par value): |
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Institutional Class |
183,156,248 | |||
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Y Class |
7,708,829 | |||
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Investor Class |
188,934,536 | |||
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Advisor Class |
6,476,033 | |||
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Retirement Class |
30,060 | |||
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A Class |
276,767 | |||
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C Class |
85,203 | |||
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AMR Class |
29,682,905 | |||
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Net asset value, offering and redemption price per share: |
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Institutional Class |
$ | 21.00 | ||
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Y Class |
$ | 20.90 | ||
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Investor Class |
$ | 19.93 | ||
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Advisor Class |
$ | 19.76 | ||
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Retirement Class |
$ | 19.62 | ||
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A Class (offering price $21.14) |
$ | 19.92 | ||
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C Class |
$ | 19.88 | ||
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AMR Class |
$ | 20.77 | ||
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A Cost of investments in unaffiliated securities |
$ | 7,823,118 | ||
B Cost of investments in affiliated securities |
$ | 10,750 |
See accompanying notes
10
American Beacon Large Cap Value FundSM
Statement of Operations
For the Six Months Ended April 30, 2012 (in thousands) (Unaudited)
Investment Income: |
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Dividend income from unaffiliated securities (net of foreign taxes)A |
$ | 118,321 | ||
Dividend income from affiliated securities |
5 | |||
Interest income |
2 | |||
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Total investment income |
118,328 | |||
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Expenses: |
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Management and investment advisory fees (Note 2) |
9,594 | |||
Administrative service fees (Note 2): |
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Institutional Class |
5,375 | |||
Y Class |
221 | |||
Investor Class |
5,526 | |||
Advisor Class |
191 | |||
Retirement Class |
1 | |||
A Class |
9 | |||
C Class |
3 | |||
AMR Class |
143 | |||
Transfer agent fees: |
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Institutional Class |
40 | |||
Investor Class |
73 | |||
Advisor Class |
3 | |||
A Class |
1 | |||
AMR Class |
3 | |||
Custody and fund accounting fees |
524 | |||
Professional fees |
81 | |||
Registration fees and expenses |
82 | |||
Service fees (Note 2): |
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Y Class |
74 | |||
Investor Class |
6,907 | |||
Advisor Class |
160 | |||
Retirement Class |
1 | |||
A Class |
3 | |||
C Class |
1 | |||
Distribution fees (Note 2): |
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Advisor Class |
160 | |||
Retirement Class |
2 | |||
A Class |
5 | |||
C Class |
7 | |||
Prospectus and shareholder reports |
280 | |||
Insurance fees |
99 | |||
Trustee fees |
291 | |||
Other expenses |
337 | |||
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Total expenses |
30,197 | |||
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Net investment income |
88,131 | |||
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Realized and unrealized gain (loss) from investments: |
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Net realized gain (loss) from: |
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Investments |
59,422 | |||
Commission recapture (Note 3) |
57 | |||
Futures contracts |
23,229 | |||
Change in net unrealized appreciation or (depreciation) of: |
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Investments |
853,914 | |||
Futures contracts |
(11,881 | ) | ||
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Net gain on investments |
924,741 | |||
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Net increase in net assets resulting from operations |
$ | 1,012,872 | ||
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A Foreign taxes |
$ | 755 |
See accompanying notes
11
American Beacon Large Cap Value FundSM
Statement of Changes in Net Assets (in thousands)
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
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(unaudited) | ||||||||
Increase (Decrease) in Net Assets: |
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Operations: |
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Net investment income |
$ | 88,131 | $ | 153,935 | ||||
Net realized gain from investments and futures contracts |
82,708 | 599,299 | ||||||
Change in net unrealized appreciation or (depreciation) of |
842,033 | (479,211 | ) | |||||
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Net increase in net assets resulting from operations |
1,012,872 | 274,023 | ||||||
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Distributions to Shareholders: |
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Net investment income: |
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Institutional Class |
(82,469 | ) | (47,237 | ) | ||||
Y Class |
(3,555 | ) | (27 | ) | ||||
Investor Class |
(77,449 | ) | (48,747 | ) | ||||
Advisor Class |
(2,549 | ) | (1,398 | ) | ||||
Retirement Class |
(18 | ) | - | |||||
A Class |
(88 | ) | (13 | ) | ||||
C Class |
(23 | ) | (1 | ) | ||||
AMR Class |
(14,457 | ) | (8,633 | ) | ||||
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Net distributions to shareholders |
(180,608 | ) | (106,056 | ) | ||||
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Capital Share Transactions: |
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Proceeds from sales of shares |
784,860 | 1,902,054 | ||||||
Reinvestment of dividends and distributions |
170,923 | 101,485 | ||||||
Cost of shares redeemed |
(1,245,211 | ) | (2,384,873 | ) | ||||
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Net (decrease) in net assets from capital share transactions |
(289,428 | ) | (381,334 | ) | ||||
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Net increase (decrease) in net assets |
542,836 | (213,367 | ) | |||||
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Net Assets: |
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Beginning of period |
7,982,374 | 8,195,741 | ||||||
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End of Period * |
$ | 8,525,210 | $ | 7,982,374 | ||||
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*Includes undistributed net investment income of |
$ | 42,504 | $ | 134,981 | ||||
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See accompanying notes
12
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
1. Organization and Significant Accounting Policies
American Beacon Funds (the Trust), which is comprised of 24 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 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 directly or 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 |
Each class offered by the Trust has equal rights as to assets and voting privileges. Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains and losses of each class are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include administrative service fees, service fees, and distribution fees and vary amongst the classes as described more fully in Note 2.
New Accounting Pronouncements
In May 2011, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. generally accepted accounting principles, (U.S. GAAP) and International Financial Reporting Standards (IFRSs). FASB concluded that the amendments in this ASU will improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs. The ASU is effective prospectively during interim or annual periods beginning on or after December 15, 2011.
Management has evaluated the implications of these changes and determined that the impact will only affect the disclosure requirements related to the financial statements.
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 Fund 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
13
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
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 unaffiliated investment advisors hired by the Manager to direct investment activities of the Fund. Management fees paid during the six months ended April 30, 2012 were as follows (dollars in thousands):
Management Fee Rate |
Management Fee |
Amounts paid to Investment Advisors |
Net Amounts Retained by Manager | |||
0.175%-0.65% |
$9,594 | $7,570 | $2,024 |
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 separate fees will 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, 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.
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 Fund.
Investment in Affiliated Funds
The Fund 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). 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, 2012, the Manager earned fees from the Select Funds totaling $23,657 on the Funds direct investment in the Select Funds.
14
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
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. This program provides an alternative credit facility allowing the Fund to borrow from other participating Funds. During the six months ended April 30, 2012, 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, 2012, there were no waived fees or reimbursed expenses subject to potential recovery.
3. Security Valuation and Fair Value Measurements
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.
Investments in mutual funds are valued at the closing net asset value (NAV) 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 the 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 Trusts Board of Trustees (the Board).
Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, a Fund is required to deposit with its futures broker, an amount of cash or U.S. Government and Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value (variation margin) is recorded by the Fund. Gains or losses are recognized, but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statement of Assets and Liabilities.
Valuation Inputs
Various inputs may be used to determine the fair 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 Funds own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
15
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Level 1 and Level 2 trading assets and trading liabilities, at fair value
Common stocks and financial derivative instruments, such as futures contracts that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.
Investments in registered open-end investment management companies will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Short-term investments having a maturity of 60 days or less are generally valued at amortized cost which approximates fair value. These investments are categorized as Level 2 of the fair value hierarchy.
Level 3 trading assets and trading liabilities, at fair value
The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of the fair value hierarchy are as follows:
Securities and other assets for which market quotes are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction and are categorized as Level 3 of the fair value hierarchy.
Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the Exchange close, that materially affect the values of a Funds securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade, do not open for trading for the entire day and no other market prices are available. The Board has delegated to the Manager the responsibility for monitoring significant events that may materially affect the values of a Funds securities or assets and for determining whether the value of the applicable securities or assets should be re-evaluated in light of such significant events.
The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation methods to the Manager. For instances in which daily market quotes are not readily available, investments may be valued, pursuant to guidelines established by the Board. In the event that the security or asset cannot be valued pursuant to one of the valuation methods established by the Board, the fair value of the security or asset will be determined in good faith by the Valuation Committee, generally based upon recommendations provided by the Manager.
When a Fund uses fair valuation methods applied by the Manager that use significant unobservable inputs to determine its NAV, the securities that have been priced using this methodology are categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Trusts policy is intended to result in a calculation of a Funds NAV that fairly reflects security values as of the time of pricing, the Trust cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that a Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ from the value that would be realized if the securities were sold.
For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in and out of the Level 3 category during the
16
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
period. The end of period timing recognition is used for the significant transfers between Levels of the Funds assets and liabilities. In accordance with the requirements of U.S. GAAP, a fair value hierarchy and Level 3 reconciliation, if any, have been included in the Notes to the Schedule of Investments for the Fund.
The Funds investments are summarized by level based on the inputs used to determine their values. U.S. GAAP also requires all significant transfers between any levels to be disclosed. During the six months ended April 30, 2012, there were no significant transfers into or out of any levels for the Fund. As of April 30, 2012, the investments were classified as described below (in thousands):
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Common Stock |
$ | 8,243,288 | $ | - | $ | - | $ | 8,243,288 | ||||||||
Preferred Stock |
22,502 | - | - | 22,502 | ||||||||||||
Short-Term Investments |
265,759 | - | - | 265,759 | ||||||||||||
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Total Investments in Securities |
$ | 8,531,549 | $ | - | $ | - | $ | 8,531,549 | ||||||||
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Futures Contracts |
$ | 1,487 | $ | - | $ | - | $ | 1,487 |
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 NAV. 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.
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 Funds 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 Funds 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.
17
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP 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 Trusts organizational documents, its officers and trustees 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 Trusts 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.
4. Securities and Other Investments
Real Estate Investment Trusts
The Fund may own shares of real estate investment trusts (REITs) which report information on the source of their distributions annually. The Fund re-characterizes distributions received from REIT investments based on information provided by the REITs into the following categories: ordinary income, long-term capital gains, and return of capital. If information is not available on a timely basis from the REITs, the re-characterization will be estimated based on available information which may include the previous year allocation. If new or additional information becomes available from the REITs at a later date, a re-characterization will be made the following year. These re-characterizations are not recorded for financial statement purposes, but as an adjustment to the calculation of taxable income.
5. Financial Derivative Instruments
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 a portion of the face value of the futures contract. The Fund usually reflects this amount on the Schedule of Investments as a U.S. Treasury Bill held as collateral for futures contracts or as Cash deposited with broker on the Statement 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.
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2012 (in thousands):
Statement of Assets and Liabilities |
Derivatives | Fair Value | ||||
Unrealized appreciation of investments and futures contracts |
Equity Contracts* | $1,487 |
18
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Effect of derivative instruments not accounted for as hedging instruments for the six months ended April 30, 2012 (in thousands):
Statement of Operations |
Derivatives | Total | ||||
Net realized gain (loss) from futures contracts |
Equity Contracts | $23,229 | ||||
Change in net unrealized appreciation or (depreciation) of futures contracts |
Equity Contracts | (11,881) |
*Includes cumulative appreciation or (depreciation) of futures contracts as reported in the Schedule of Investments footnotes. Only current days variation margin is reported within the Statement of Assets and Liabilities.
6. Federal Income and Excise Taxes
It is the policy of the Fund to qualify as a regulated investment company (RIC), by complying with all applicable provisions of Subchapter M of the Internal Revenue Code, as amended, 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.
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, 2011 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. GAAP. 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, 2012 and the fiscal year ended October 31, 2011 were as follows (in thousands):
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
|||||||
Distributions paid from: |
(unaudited) | |||||||
Ordinary income* |
||||||||
Institutional Class |
$ | 82,469 | $ | 47,237 | ||||
Y Class |
3,555 | 27 | ||||||
Investor Class |
77,449 | 48,747 | ||||||
Advisor Class |
2,549 | 1,398 | ||||||
Retirement Class |
18 | - | ||||||
A Class |
88 | 13 | ||||||
C Class |
23 | 1 | ||||||
AMR Class |
14,457 | 8,633 | ||||||
|
|
|
|
|||||
Total distributions paid |
$ | 180,608 | $ | 106,056 | ||||
|
|
|
|
*For tax purposes, short-term capital gains are considered ordinary income distributions.
As of April 30, 2012, the components of distributable earnings or (deficits) on a tax basis were as follows (in thousands):
Cost basis of investments for federal income tax purposes |
$ 8,096,528 | |
Unrealized appreciation |
1,205,991 | |
Unrealized depreciation |
(770,970) | |
| ||
Net unrealized appreciation or (depreciation) |
435,021 | |
Undistributed ordinary income |
42,503 | |
Accumulated long-term gain or (loss) |
(1,112,475) | |
Other temporary differences |
1,512 | |
| ||
Distributable earnings or (deficits) |
$ (633,439) | |
|
19
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
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 or (depreciation) are attributable primarily to the tax deferral of losses from wash sales and the realization for tax purposes of unrealized gains or (losses) on certain derivative instruments.
Due to inherent differences in the recognition of income, expenses and realized gains or (losses) under U.S. GAAP 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, 2012 (in thousands):
Paid-in-capital |
$ | 9 | ||
Undistributed net investment income |
- | |||
Accumulated net realized gain (loss) |
(9 | ) | ||
Unrealized appreciation or (depreciation) of investments and futures contracts |
- |
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the RIC MOD) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. One of the more prominent changes addresses capital loss carryforwards. Under the RIC MOD, each Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.
Finally, the RIC MOD contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions. Except for the simplification provisions related to RIC qualification, the RIC MOD is effective for taxable years beginning after December 22, 2010. The provisions related to RIC qualification are effective for taxable years for which the extended due date of the tax return is after December 22, 2010.
As of April 30, 2012, the capital loss carryforward positions of the Fund, prior to the provisions of RIC MOD that may be applied against any realized net taxable gain in each succeeding year or until their expiration dates, whichever occurs first, are $384,123, $684,423, and $42,443 expiring in 2016, 2017, and 2018, respectively (in thousands). The Fund utilized $72,192 of net capital loss carryforwards for the six months ended April 30, 2012.
7. 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, 2012 were (in thousands) $1,114,850 and $1,377,405, respectively.
A summary of the Funds direct transactions in the Select Funds for the six months ended April 30, 2012 is set forth below (in thousands):
20
American Beacon Large Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Affiliate |
October 31, 2011 Shares/Fair Value |
Purchases | Sales | April 30, 2012 Shares/Fair Value | ||||
USG Select Fund |
$25,000 | $ - | $14,250 | $10,750 |
8. Capital Share Transactions
The tables below summarize the activity in capital shares for each Class of the Fund (dollars and shares in thousands):
For the Six months Ended April 30, 2012
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold |
18,256 | $361,702 | 852 | $16,585 | 13,854 | $261,953 | 501 | $9,291 | ||||||||||||||||||||||||
Reinvestment of dividends |
4,077 | 75,537 | 192 | 3,547 | 4,246 | 74,766 | 143 | 2,499 | ||||||||||||||||||||||||
Shares redeemed |
(17,255 | ) | (341,877 | ) | (468 | ) | (9,163 | ) | (38,268 | ) | (714,139 | ) | (1,443 | ) | (26,964 | ) | ||||||||||||||||
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|||||||||||||||||
Net increase (decrease) in shares outstanding |
5,078 | $95,362 | 576 | $10,969 | (20,168 | ) | $(377,420 | ) | (799 | ) | $(15,174 | ) | ||||||||||||||||||||
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Retirement Class | AMR Class | A Class | C Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold |
19 | $338 | 6,819 | $132,621 | 108 | $2,052 | 17 | $318 | ||||||||||||||||||||||||
Reinvestment of dividends |
1 | 18 | 790 | 14,457 | 5 | 79 | 1 | 20 | ||||||||||||||||||||||||
Shares redeemed |
(47 | ) | (870 | ) | (8,170 | ) | (151,045 | ) | (55 | ) | (1,024 | ) | (7 | ) | (129 | ) | ||||||||||||||||
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|
|||||||||||||||||
Net increase (decrease) in shares outstanding |
(27 | ) | $(514 | ) | (561 | ) | $(3,967 | ) | 58 | $1,107 | 11 | $209 | ||||||||||||||||||||
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For the Year Ended October 31, 2011
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold |
39,716 | $774,596 | 7,497 | $151,632 | 45,467 | $843,177 | 1,548 | $28,674 | ||||||||||||||||||||||||
Reinvestment of dividends |
2,273 | 44,274 | 1 | 27 | 2,547 | 47,168 | 75 | 1,372 | ||||||||||||||||||||||||
Shares redeemed |
(45,266 | ) | (866,688 | ) | (480 | ) | (9,076 | ) | (74,020 | ) | (1,366,606 | ) | (1,681 | ) | (30,880 | ) | ||||||||||||||||
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|||||||||||||||||
Net increase (decrease) in shares outstanding |
(3,277 | ) | $(47,818 | ) | 7,018 | $142,583 | (26,006 | ) | $(476,261 | ) | (58 | ) | $(834 | ) | ||||||||||||||||||
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Retirement Class | AMR Class | A Class | C Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold |
63 | $1,138 | 5,137 | $97,647 | 210 | $3,855 | 73 | $1,336 | ||||||||||||||||||||||||
Reinvestment of dividends |
- | - | 448 | 8,633 | 1 | 11 | - | - | ||||||||||||||||||||||||
Shares redeemed |
(6 | ) | (109 | ) | (5,724 | ) | (110,845 | ) | (38 | ) | (650 | ) | (1 | ) | (19 | ) | ||||||||||||||||
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|||||||||||||||||
Net increase (decrease) in shares outstanding |
57 | $1,029 | (139 | ) | $(4,565 | ) | 173 | $3,216 | 72 | $1,317 | ||||||||||||||||||||||
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21
American Beacon Large Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | ||||||||||||||||||||||||
Six Months April 30, |
Year Ended October 31, | |||||||||||||||||||||||
2012 | 2011F | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 18.99 | $ | 18.56 | $ | 16.32 | $ | 15.01 | $ | 26.03 | $ | 23.77 | ||||||||||||
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|||||||||||||
Income from investment operations: |
||||||||||||||||||||||||
Net investment incomeA |
0.23 | 0.39 | 0.32 | 0.35 | 0.51 | 0.40 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) |
2.24 | 0.30 | 2.22 | 1.40 | (10.41) | 2.78 | ||||||||||||||||||
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|||||||||||||
Total income (loss) from investment operations |
2.47 | 0.69 | 2.54 | 1.75 | (9.90) | 3.18 | ||||||||||||||||||
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Less distributions: |
||||||||||||||||||||||||
Dividends from net investment income |
(0.46) | (0.26) | (0.30) | (0.44) | (0.41) | (0.31) | ||||||||||||||||||
Distributions from net realized gains on securities |
- | - | - | - | (0.71) | (0.61) | ||||||||||||||||||
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|||||||||||||
Total distributions |
(0.46) | (0.26) | (0.30) | (0.44) | (1.12) | (0.92) | ||||||||||||||||||
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Net asset value, end of period |
$ | 21.00 | $ | 18.99 | $ | 18.56 | $ | 16.32 | $ | 15.01 | $ | 26.03 | ||||||||||||
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Total return B |
13.35%C | 3.69% | 15.68% | 12.41% | (39.59)% | 13.76% | ||||||||||||||||||
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Ratios and supplemental data: |
||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 3,847,102 | $ | 3,380,918 | $ | 3,366,011 | $ | 2,221,162 | $ | 2,038,539 | $ | 2,493,451 | ||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||
Expenses, before waivers |
0.58% | 0.58% | 0.59% | 0.61% | 0.58% | 0.59% | ||||||||||||||||||
Expenses, net of waivers |
0.58% | 0.58% | 0.59% | 0.61% | 0.58% | 0.59% | ||||||||||||||||||
Net investment income (loss), before waivers |
2.32% | 1.96% | 1.73% | 2.36% | 2.19% | 1.82% | ||||||||||||||||||
Net investment income, net of waivers |
2.32% | 1.96% | 1.73% | 2.36% | 2.19% | 1.82% | ||||||||||||||||||
Portfolio turnover rate |
14%C | 90% | 28% | 27% | 28% | 20% |
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, Massachusetts Financial Services Co. assumed management of the Large Cap Value Funds assets previously managed by Metropolitan West Capital Management, LLC. |
22
American Beacon Large Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
Y Class | Investor Class | |||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2012 |
Year Ended October 31, |
August
3 to October 31, 2009 |
Six
Months Ended April 30, 2012 |
Year Ended October 31, | ||||||||||||||||||||||||||||||||||
2011F | 2010 | 2011F | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||
$ | 18.92 | $ | 18.49 | $ | 16.32 | $ | 15.59 | $ | 17.99 | $ | 17.61 | $ | 15.51 | $ | 14.29 | $ | 24.83 | $ | 22.74 | |||||||||||||||||||
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0.22 | 0.37 | 0.29 | 0.06 | 0.18 | 0.30 | 0.23 | 0.28 | 0.41 | 0.35 | |||||||||||||||||||||||||||||
|
2.24 |
|
0.30 | 2.22 | 0.67 | 2.15 | 0.29 | 2.12 | 1.34 | (9.88) | 2.63 | |||||||||||||||||||||||||||
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2.46 | 0.67 | 2.51 | 0.73 | 2.33 | 0.59 | 2.35 | 1.62 | (9.47) | 2.98 | |||||||||||||||||||||||||||||
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(0.48) | (0.24) | (0.34) | - | (0.39) | (0.21) | (0.25) | (0.40) | (0.36) | (0.28) | |||||||||||||||||||||||||||||
- | - | - | - | - | - | - | - | (0.71) | (0.61) | |||||||||||||||||||||||||||||
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(0.48) | (0.24) | (0.34) | - | (0.39) | (0.21) | (0.25) | (0.40) | (1.07) | (0.89) | |||||||||||||||||||||||||||||
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$ | 20.90 | $ | 18.92 | $ | 18.49 | $ | 16.32 | $ | 19.93 | $ | 17.99 | $ | 17.61 | $ | 15.51 | $ | 14.29 | $ | 24.83 | |||||||||||||||||||
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13.34% | C | 3.58% | 15.50% | 4.68% | C | 13.21% | C | 3.30% | 15.27% | 11.99% | (39.72)% | 13.46% | ||||||||||||||||||||||||||
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$ | 161,141 | $ | 134,968 | $ | 2,123 | $ | 1 | $ | 3,764,711 | $ | 3,761,691 | $ | 4,140,584 | $ | 3,798,632 | $ | 3,594,565 | $ | 5,198,835 | |||||||||||||||||||
0.68% | 0.69% | 0.70% | 0.68% | E | 0.96% | 0.95% | 0.96% | 0.93% | 0.83% | 0.83% | ||||||||||||||||||||||||||||
0.68% | 0.69% | 0.70% | 0.68% | E | 0.96% | 0.95% | 0.96% | 0.93% | 0.83% | 0.83% | ||||||||||||||||||||||||||||
2.20% | 1.88% | 1.51% | 1.58% | E | 1.98% | 1.59% | 1.36% | 2.05% | 1.94% | 1.59% | ||||||||||||||||||||||||||||
2.20% | 1.88% | 1.51% | 1.58% | E | 1.98% | 1.59% | 1.36% | 2.05% | 1.94% | 1.59% | ||||||||||||||||||||||||||||
14% | C | 90% | 28% | 27% | D | 14% | C | 90% | 28% | 27% | 28% | 20% |
23
American Beacon Large Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
Advisor Class | Retirement Class | |||||||||||||||||||||||||||||||
Six Months April 30, |
Year Ended October 31, | Six Months |
Year Ended October 31, |
|||||||||||||||||||||||||||||
2012 | 2011G | 2010 | 2009 | 2008 | 2007 | 2012 | 2011G | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 17.83 | $ | 17.47 | $ | 15.39 | $ | 14.19 | $ | 24.70 | $ | 22.64 | $ | 17.74 | $ | 17.32 | ||||||||||||||||
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|||||||||||||||||
Income from investment operations: |
||||||||||||||||||||||||||||||||
Net investment income (loss)A |
0.16 | 0.27 | 0.21 | 0.26 | 0.32 | 0.28 | 0.05 | 0.20 | ||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) |
2.14 | 0.28 | 2.10 | 1.32 | (9.79) | 2.62 | 2.20 | 0.30 | ||||||||||||||||||||||||
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|||||||||||||||||
Total income (loss) from investment operations |
2.30 | 0.55 | 2.31 | 1.58 | (9.47) | 2.90 | 2.25 | 0.50 | ||||||||||||||||||||||||
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Less distributions: |
||||||||||||||||||||||||||||||||
Dividends from net investment income |
(0.37) | (0.19) | (0.23) | (0.38) | (0.33) | (0.23) | (0.37) | (0.08) | ||||||||||||||||||||||||
Distributions from net realized gains on securities |
- | - | - | - | (0.71) | (0.61) | - | - | ||||||||||||||||||||||||
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Total distributions |
(0.37) | (0.19) | (0.23) | (0.38) | (1.04) | (0.84) | (0.37) | (0.08) | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net asset value, end of period |
$ | 19.76 | $ | 17.83 | $ | 17.47 | $ | 15.39 | $ | 14.19 | $ | 24.70 | $ | 19.62 | $ | 17.74 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total return B |
13.16%C | 3.11% | 15.14% | 11.81% | (39.87)% | 13.16% | 12.98%C | 2.86% | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ratios and supplemental data: |
||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 127,957 | $ | 129,739 | $ | 128,080 | $ | 114,945 | $ | 99,416 | $ | 99,854 | $ | 590 | $ | 1,019 | ||||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||||||||||
Expenses, before waivers |
1.08% | 1.08% | 1.10% | 1.12% | 1.08% | 1.08% | 1.41% | 1.39% | ||||||||||||||||||||||||
Expenses, net of waivers |
1.08% | 1.08% | 1.10% | 1.10% | 1.08% | 1.08% | 1.41% | 1.39% | ||||||||||||||||||||||||
Net investment income (loss), before waivers |
1.85% | 1.46% | 1.23% | 1.84% | 1.69% | 1.32% | 1.57% | 1.06% | ||||||||||||||||||||||||
Net investment income, net of waivers |
1.85% | 1.46% | 1.23% | 1.86% | 1.69% | 1.32% | 1.57% | 1.06% | ||||||||||||||||||||||||
Portfolio turnover rate |
14%C | 90% | 28% | 27% | 28% | 20% | 14%C | 90% |
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, Massachusetts Financial Services Co. assumed management of the Large Cap Value Funds assets previously managed by Metropolitan West Capital Management, LLC. |
24
American Beacon Large Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
|
A Class | C Class | ||||||||||||||||||||||||||||
|
May 1 to October 31, |
Six Months Ended |
Year ended October 31, |
May 17 to October 31, |
Six Months |
Year ended October 31, |
September 1 to |
|||||||||||||||||||||||
2010 | 2009 | 2012 | 2011G | 2010 | 2012 | 2011G | 2010 | |||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||
$ | 15.36 | $ | 12.66 | $ | 18.01 | $ | 17.61 | $ | 16.93 | $ | 17.95 | $ | 17.58 | $ | 16.17 | |||||||||||||||
|
|
|
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|
|
|
|
|||||||||||||||
0.18 | 0.08 | 0.20 | 0.24 | 0.03 | 0.12 | 0.10 | (0.01) | |||||||||||||||||||||||
2.07 | 2.62 | 2.11 | 0.31 | 0.65 | 2.11 | 0.32 | 1.42 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
2.25 | 2.70 | 2.31 | 0.55 | 0.68 | 2.23 | 0.42 | 1.41 | |||||||||||||||||||||||
|
|
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|
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|
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|
|
|
|
|
|
|
|||||||||||||||
(0.29) | - | (0.40) | (0.15) | - | (0.30) | (0.05) | - | |||||||||||||||||||||||
- | - | - | - | - | - | - | - | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(0.29) | - | (0.40) | (0.15) | - | (0.30) | (0.05) | - | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 17.32 | $ | 15.36 | $ | 19.92 | $ | 18.01 | $ | 17.61 | $ | 19.88 | $ | 17.95 | $ | 17.58 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
14.78% | 21.33%C | 13.13%C | 3.12% | 4.02%C | 12.64%C | 2.36% | 8.72%C | |||||||||||||||||||||||
|
|
|
|
|
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|
|
|
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|
|
|
|
|
|
|||||||||||||||
$ | 2 | $ | 1 | $ | 5,512 | $ | 3,942 | $ | 814 | $ | 1,694 | $ | 1,329 | $ | 38 | |||||||||||||||
1.37% | 1.37%D | 1.10% | 1.16% | 1.06%D | 1.85% | 2.54% | 2.14%D | |||||||||||||||||||||||
1.37% | 1.37%D | 1.10% | 1.16% | 1.06%D | 1.85% | 1.84% | 1.87%D | |||||||||||||||||||||||
0.95% | 1.15%D | 1.74% | 1.37% | 1.09%D | 1.02% | (0.01)% | (0.76)%D | |||||||||||||||||||||||
0.95% | 1.15%D | 1.74% | 1.37% | 1.09%D | 1.02% | 0.68% | (0.50)%D | |||||||||||||||||||||||
28% | 27%E | 14%C | 90% | 28%F | 14%C | 90% | 28%F |
25
American Beacon Large Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
AMR Class | ||||||||||||||||||||||||
Six Months |
Year Ended October 31, | |||||||||||||||||||||||
Ended April 30, 2012 |
2011D | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 18.81 | $ | 18.37 | $ | 16.14 | $ | 14.88 | $ | 25.80 | $ | 23.55 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income from investment operations: |
||||||||||||||||||||||||
Net investment incomeA |
0.28 | 0.41 | 0.34 | 0.37 | 0.51 | 0.45 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) |
2.19 | 0.32 | 2.22 | 1.38 | (10.26) | 2.76 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total income (loss) from investment operations |
2.47 | 0.73 | 2.56 | 1.75 | (9.75) | 3.21 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Less distributions: |
||||||||||||||||||||||||
Dividends from net investment income |
(0.51) | (0.29) | (0.33) | (0.49) | (0.46) | (0.35) | ||||||||||||||||||
Distributions from net realized gains on securities |
- | - | - | - | (0.71) | (0.61) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions |
(0.51) | (0.29) | (0.33) | (0.49) | (1.17) | (0.96) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 20.77 | $ | 18.81 | $ | 18.37 | $ | 16.14 | $ | 14.88 | $ | 25.80 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total return B |
13.52%C | 3.94% | 16.04% | 12.59% | (39.43)% | 14.03% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios and supplemental data: |
||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 616,503 | $ | 568,768 | $ | 558,089 | $ | 520,799 | $ | 497,127 | $ | 972,260 | ||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||
Expenses, before waivers |
0.33% | 0.33% | 0.34% | 0.36% | 0.32% | 0.32% | ||||||||||||||||||
Expenses, net of waivers |
0.33% | 0.33% | 0.34% | 0.36% | 0.32% | 0.32% | ||||||||||||||||||
Net investment income (loss), before waivers |
2.63% | 2.21% | 1.98% | 2.62% | 2.44% | 2.13% | ||||||||||||||||||
Net investment income, net of waivers |
2.63% | 2.21% | 1.98% | 2.62% | 2.44% | 2.13% | ||||||||||||||||||
Portfolio turnover rate |
14%C | 90% | 28% | 27% | 28% | 20% |
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, Massachusetts Financial Services Co. assumed management of the Large Cap Value Funds assets previously managed by Metropolitan West Capital Management, LLC. |
26
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27
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28
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29
Delivery of Documents
eDelivery is NOW AVAILABLE- Stop traditional mail delivery and receive your
shareholder reports and summary prospectus on-line. Sign up at
www.americanbeaconfunds.com
If you invest in the Fund through a financial institution, you may be able to receive the Funds 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 institutions name or contact your financial institution directly.
To obtain more information about the Fund:
![]() |
![]() | |||||
By E-mail: american_beacon.funds@ambeacon.com
|
On the Internet: Visit our website at www.americanbeaconfunds.com
| |||||
![]() |
![]() | |||||
By Telephone: Institutional, Y, Investor, Advisor, and Retirement Classes Call (800) 658-5811 AMR ClassSM Call (800) 345-2345 |
By Mail: American Beacon Funds P.O. Box 219643 Kansas City, MO 64121-9643 | |||||
Availability of Quarterly Portfolio Schedules
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 Funds Forms N-Q are available on the SECs website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SECs Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-1520. Information regarding the operation of the SECs Public Reference Room may be obtained by calling (202) 551-8090. A complete schedule of the Funds portfolio holdings is also available on the Funds website (www.americanbeaconfunds.com) approximately twenty days after the end of each month. |
Availability of Proxy Voting Policy and Records
A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Funds Statement of Additional Information, is available free of charge on the Funds website (www.americanbeaconfunds.com) and by calling 1-800-967-9009 or by accessing the SECs website at www.sec.gov. The Funds proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Funds Forms N-PX are available on the SECs website at www.sec.gov. The Funds 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 4/12
Any opinions herein, including forecasts, reflect our judgment as of the end of the reporting period and are subject to change. Each advisors 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. The intrinsic value of stock selected for the Fund may never be realized by the market, and the price of value stocks may go down. While investing in value stocks may limit downside risk over time, the Fund may produce more modest gains than riskier stock funds as a trade-off for this potentially lower risk. |
American Beacon Funds |
April 30, 2012 |
For the six-month period ended April 30, 2012:
- American Beacon Small Cap Value Fund (Institutional Class) returned 11.96%.
With continued uncertainty in the European Union and an upcoming Presidential election, we may again see further market gyrations in the months to come. Regardless of headlines, American Beacon remains focused on seeking opportunities and meeting market challenges to deliver the type of consistency in performance and service that our shareholders value.
Thank you for your continued investment in the American Beacon Funds. For additional information about the Funds 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
Domestic Equity Market Overview
April 30, 2012 (Unaudited)
The six months ended April 30, 2012 was a constructive period for equity investors, who took delight in the S&P 500 Indexs 12.8% return. The markets advance was prompted by continued signs of a strengthening U.S. economy and the absence of new negative global macroeconomic developments. Consequently, the VIX Index the Chicago Board Options Exchange Market Volatility Index, commonly referred to as the Fear Index declined from well above its historical average at the beginning of the period, to well below its historical average at the end of the period.
As short-term fears subsided and became a less prominent driver of investor behavior, the market focus shifted toward the underlying fundamentals and valuations of individual stocks. This type of shift tends to reduce the correlation of returns across stocks and forms an environment conducive for bottom-up, fundamental value investors.
Over the six-month period, non-commodity cyclicals outperformed the market by a considerable margin while energy, utilities and materials lagged. Growth stocks outperformed value stocks modestly, but this was influenced heavily by the overweight to technology in the growth indexes, which was one of the top-performing sectors. |
Going forward, the equity markets prospects appear positive due to considerable fundamental improvements exhibited across the corporate sector. Despite modest economic growth, companies have generated robust earnings and cash flows, which have been predominately used to reduce debt. Valuations continue to be compelling even after recent appreciation. Additionally, the appeal of Treasuries for the market is likely to recede as real yields at or below zero will eventually erode the purchasing power of institutional and individual investors alike.
With the lingering sovereign debt issues in Europe and the uncertain growth prospects in emerging markets, there may be periods of elevated volatility in the near- and medium-term. During these episodes, the changes in security prices (i.e., volatility) are often not commensurate with the changes in real risk. Our experience has shown us that focusing on corporate fundamentals is the most effective course when navigating erratic waters. |
2
American Beacon Small Cap Value FundSM
Performance Overview
April 30, 2012 (Unaudited)
3
American Beacon Small Cap Value FundSM
Performance Overview
April 30, 2012 (Unaudited)
4
American Beacon Small Cap Value FundSM
Fund Expenses
April 30, 2012 (Unaudited)
5
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
6 |
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
7 |
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
8 |
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
9 |
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
10 |
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
11 |
American Beacon Small Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Futures Contracts Open on April 30, 2012: |
Description | Type | Number of Contracts |
Expiration Date | Contract Value | Unrealized Appreciation (Depreciation) | |||||
Russell 2000 Mini Index Future |
Long | 1,365 | June, 2012 | $ 111,234 | $ 887 | |||||
|
| |||||||||
$ 111,234 | $ 887 | |||||||||
|
|
See accompanying notes |
12 |
American Beacon Small Cap Value FundSM
Statement of Assets and Liabilities
April 30, 2012 (in thousands, except share and per share amounts) (Unaudited)
Assets: |
||||
Investments in unaffiliated securities, at fair value A C |
$ | 3,397,385 | ||
Investments in affiliated securities, at fair value B |
165,965 | |||
Deposit with brokers for futures contracts |
7,890 | |||
Receivable for investments sold |
17,494 | |||
Dividends and interest receivable |
740 | |||
Receivable for fund shares sold |
3,624 | |||
Prepaid expenses |
109 | |||
|
|
|||
Total assets |
3,593,207 | |||
|
|
|||
Liabilities: |
||||
Payable for investments purchased |
9,067 | |||
Payable for variation margin from open futures contracts |
1,173 | |||
Payable upon return of securities loaned |
155,039 | |||
Payable for fund shares redeemed |
6,512 | |||
Management and investment advisory fees payable (Note 2) |
4,142 | |||
Administrative service and service fees payable (Note 2) |
895 | |||
Professional fees payable |
11 | |||
Other liabilities |
477 | |||
|
|
|||
Total liabilities |
177,316 | |||
|
|
|||
Net assets |
$ | 3,415,891 | ||
|
|
|||
Analysis of Net Assets: |
||||
Paid-in-capital |
3,024,427 | |||
Undistributed net investment income |
7,812 | |||
Accumulated net realized loss |
(36,500) | |||
Unrealized appreciation of investments and futures contracts |
420,152 | |||
|
|
|||
Net assets |
$ | 3,415,891 | ||
|
|
|||
Shares outstanding (no par value): |
||||
Institutional Class |
104,173,677 | |||
|
|
|||
Y Class |
1,758,300 | |||
|
|
|||
Investor Class |
39,914,960 | |||
|
|
|||
Advisor Class |
1,750,768 | |||
|
|
|||
Retirement Class |
257,557 | |||
|
|
|||
A Class |
136,945 | |||
|
|
|||
C Class |
84,194 | |||
|
|
|||
AMR Class |
16,481,809 | |||
|
|
|||
Net asset value, offering and redemption price per share: |
||||
Institutional Class |
$ | 20.90 | ||
|
|
|||
Y Class |
$ | 20.76 | ||
|
|
|||
Investor Class |
$ | 20.38 | ||
|
|
|||
Advisor Class |
$ | 20.27 | ||
|
|
|||
Retirement Class |
$ | 20.00 | ||
|
|
|||
A Class (offering price $21.50) |
$ | 20.27 | ||
|
|
|||
C Class |
$ | 20.07 | ||
|
|
|||
AMR Class |
$ | 20.83 | ||
|
|
|||
A Cost of investments in unaffiliated securities |
$ | 2,978,120 | ||
B Cost of investments in affiliated securities | $ | 165,965 | ||
C Market value of securities on loan | $ | 151,446 |
See accompanying notes |
13 |
American Beacon Small Cap Value FundSM
Statement of Operations
For the Six Months Ended April 30, 2012 (in thousands) (Unaudited)
Investment Income: |
||||
Dividend income from unaffiliated securities (net of foreign taxes)A |
$ | 26,423 | ||
Dividend income from affiliated securities |
7 | |||
Interest income |
3 | |||
Income derived from securities lending, net |
1,290 | |||
|
|
|||
Total investment income |
27,723 | |||
|
|
|||
Expenses: |
||||
Management and investment advisory fees (Note 2) |
7,620 | |||
Administrative service fees (Note 2): |
||||
Institutional Class |
3,053 | |||
Y Class |
52 | |||
Investor Class |
1,247 | |||
Advisor Class |
50 | |||
Retirement Class |
6 | |||
A Class |
4 | |||
C Class |
3 | |||
AMR Class |
91 | |||
Transfer agent fees: |
||||
Institutional Class |
19 | |||
Investor Class |
21 | |||
Advisor Class |
1 | |||
Retirement Class |
1 | |||
A Class |
1 | |||
C Class |
1 | |||
AMR Class |
1 | |||
Custody and fund accounting fees |
209 | |||
Professional fees |
55 | |||
Registration fees and expenses |
49 | |||
Service fees (Note 2): |
||||
Y Class |
17 | |||
Investor Class |
1,523 | |||
Advisor Class |
42 | |||
Retirement Class |
5 | |||
A Class |
2 | |||
C Class |
1 | |||
Distribution fees (Note 2): |
||||
Advisor Class |
42 | |||
Retirement Class |
10 | |||
A Class |
3 | |||
C Class |
7 | |||
Prospectus and shareholder reports |
187 | |||
Insurance fees |
38 | |||
Trustee fees |
104 | |||
Other expenses |
84 | |||
|
|
|||
Total expenses |
14,549 | |||
|
|
|||
Net investment income |
13,174 | |||
|
|
|||
Realized and unrealized gain (loss) from investments: |
||||
Net realized gain (loss) from: |
||||
Investments |
111,614 | |||
Commission recapture (Note 3) |
48 | |||
Futures contracts |
30,960 | |||
Change in net unrealized appreciation or (depreciation) of: |
||||
Investments |
221,680 | |||
Futures contracts |
(12,866) | |||
|
|
|||
Net gain on investments |
351,436 | |||
|
|
|||
Net increase in net assets resulting from operations |
$ | 364,610 | ||
|
|
|||
A Foreign taxes |
$ | 67 |
See accompanying notes |
14 |
American Beacon Small Cap Value FundSM
Statement of Changes of Net Assets (in thousands)
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
|||||||
(unaudited) | ||||||||
Increase (Decrease) in Net Assets: |
||||||||
Operations: |
||||||||
Net investment income |
$ | 13,174 | $ | 12,296 | ||||
Net realized gain from investments and futures contracts |
142,622 | 273,996 | ||||||
Change in net unrealized appreciation or (depreciation) of |
208,814 | (135,769) | ||||||
|
|
|
|
|||||
Net increase in net assets resulting from operations |
364,610 | 150,523 | ||||||
|
|
|
|
|||||
Distributions to Shareholders: |
||||||||
Net investment income: |
||||||||
Institutional Class |
(8,493) | (7,510) | ||||||
Y Class |
(185) | (4) | ||||||
Investor Class |
(197) | (3,709) | ||||||
Advisor Class |
| (117) | ||||||
Retirement Class |
(14) | (1) | ||||||
A Class |
(4) | | ||||||
AMR Class |
(2,114) | (2,000) | ||||||
|
|
|
|
|||||
Net distributions to shareholders |
(11,007) | (13,341) | ||||||
|
|
|
|
|||||
Capital Share Transactions: |
||||||||
Proceeds from sales of shares |
531,542 | 1,125,906 | ||||||
Reinvestment of dividends and distributions |
10,798 | 13,190 | ||||||
Cost of shares redeemed |
(572,471) | (920,005) | ||||||
Net increase (decrease) in net assets from capital share transactions |
(30,131) | 219,091 | ||||||
|
|
|
|
|||||
Net increase in net assets |
323,472 | 356,273 | ||||||
|
|
|
|
|||||
Net Assets: |
||||||||
Beginning of period |
3,092,419 | 2,736,146 | ||||||
|
|
|
|
|||||
End of Period * |
$ | 3,415,891 | $ | 3,092,419 | ||||
|
|
|
|
|||||
*Includes undistributed net investment income of |
$ | 7,812 | $ | 6,430 | ||||
|
|
|
|
See accompanying notes |
15 |
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
1. Organization and Significant Accounting Policies
American Beacon Funds (the Trust), which is comprised of 24 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 directly or 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 charge | |
C Class | General public and investors investing through an intermediary with applicable sales charge | |
AMR Class | Investors in the tax-exempt retirement and benefit plans of the Manager, AMR Corporation, and its affiliates |
Each class offered by the Trust has equal rights as to assets and voting privileges. Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains and losses of each class are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include administrative service fees, service fees, and distribution fees and vary amongst the classes as described more fully in Note 2.
New Accounting Pronouncements
In May 2011, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. generally accepted accounting principles, (U.S. GAAP) and International Financial Reporting Standards (IFRSs). FASB concluded that the amendments in this ASU will improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs. The ASU is effective prospectively during interim or annual periods beginning on or after December 15, 2011.
Management has evaluated the implications of these changes and determined that the impact will only affect the disclosure requirements related to the financial statements.
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
16
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
services. Investment assets of the Fund 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 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 Fund. Management fees paid during the six months ended April 30, 2012 were as follows (dollars in thousands):
Management Fee Rate |
Management Fee | Amounts paid to Investment Advisors |
Net Amounts Retained by Manager | |||
0.30%-0.60% |
$7,620 | $6,797 | $823 |
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, 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, 2012, securities lending fees paid to the Manager were $140,438.
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 separate fees will 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, 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.
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 Fund.
17
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Investment in Affiliated Funds
The Fund 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 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, 2012, the Manager earned fees from the Select Funds totaling $9,954 on the Funds direct investment in the Select Funds and $84,837 from the Funds securities lending collateral invested in the Select Funds.
Interfund Lending Program
Pursuant to an exemptive order by the Securities and Exchange Commission (SEC), the Fund, along with other registered investment companies having management contracts with the Manager, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating Funds. During the six months ended April 30, 2012, the Fund did not participate in the program.
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, 2012, the A and C Classes waived $224 and $109, respectively. The Fund has not recorded a liability for potential reimbursements, due to the current assessment that a reimbursement is unlikely.
3. Security Valuation and Fair Value Measurements
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.
Investments in mutual funds are valued at the closing net asset value (NAV) 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 Trusts Board of Trustees (the Board).
Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, a Fund is required to deposit with its futures broker, an amount of cash or U.S. Government and Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value (variation margin) is recorded by the Fund. Gains or losses are recognized, but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statement of Assets and Liabilities.
18
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Valuation Inputs
Various inputs may be used to determine the fair 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 Funds own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Level 1 and Level 2 trading assets and trading liabilities, at fair value
Common stocks and financial derivative instruments, such as futures contracts that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.
Investments in registered open-end investment management companies will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Short-term investments having a maturity of 60 days or less are generally valued at amortized cost which approximates fair value. These investments are categorized as Level 2 of the fair value hierarchy.
Level 3 trading assets and trading liabilities, at fair value
The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of the fair value hierarchy are as follows:
Securities and other assets for which market quotes are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction and are categorized as Level 3 of the fair value hierarchy.
Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the Exchange close, that materially affect the values of a Funds securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade, do not open for trading for the entire day and no other market prices are available. The Board has delegated to the Manager the responsibility for monitoring significant events that may materially affect the values of a Funds securities or assets and for determining whether the value of the applicable securities or assets should be re-evaluated in light of such significant events.
The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation methods to the Manager. For instances in which daily market quotes are not readily available, investments may be valued, pursuant to guidelines established by the Board. In the event that the security or asset cannot be valued pursuant to one of the valuation methods established by the Board, the fair value of the security or
19
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
asset will be determined in good faith by the Valuation Committee, generally based upon recommendations provided by the Manager.
When a Fund uses fair valuation methods applied by the Manager that use significant unobservable inputs to determine its NAV, the securities priced using this methodology are categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Trusts policy is intended to result in a calculation of a Funds NAV that fairly reflects security values as of the time of pricing, the Trust cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that a Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ from the value that would be realized if the securities were sold.
For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in and out of the Level 3 category during the period. The end of period timing recognition is used for the significant transfers between Levels of the Funds assets and liabilities. In accordance with the requirements of U.S. GAAP, a fair value hierarchy and Level 3 reconciliation, if any, have been included in the Notes to the Schedule of Investments for the Fund.
The Funds investments are summarized by level based on the inputs used to determine their values. U.S. GAAP also requires all significant transfers between any levels to be disclosed. During the six months ended April 30, 2012, there were no significant transfers into or out of any level for the Fund. As of April 30, 2012, the Funds investments were classified as described below (in thousands):
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Common Stock |
$ | 3,298,226 | $ | - | $ | - | $ | 3,298,226 | ||||||||
Short-Term Investments |
110,085 | - | - | 110,085 | ||||||||||||
Securities Lending Collateral invested in Money Market Funds |
155,039 | - | - | 155,039 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ | 3,563,350 | $ | - | $ | - | $ | 3,563,350 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Futures Contracts |
$ 887 | $ | - | $ | - | $ 887 |
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 NAV. 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.
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.
20
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Commission Recapture
The Fund has 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 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 Funds 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. GAAP 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 Trusts organizational documents, its officers and trustees 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 Trusts 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.
4. Securities and Other Investments
Real Estate Investment Trusts
The Fund may own shares of real estate investment trusts (REITs) which report information on the source of their distributions annually. The Fund re-characterizes distributions received from REIT investments based on information provided by the REITs into the following categories: ordinary income, long-term capital gains, and return of capital. If information is not available on a timely basis from the REITs, the re-characterization will be estimated based on available information which may include the previous year allocation. If new or additional information becomes available from the REITs at a later date, a re-characterization will be made the following year. These re-characterizations are not recorded for financial statement purposes, but as an adjustment to the calculation of taxable income.
5. Financial Derivative Instruments
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.
21
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (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 a portion of the face value of the futures contract. The Fund usually reflects this amount on the Schedule of Investments as a U.S. Treasury Bill held as collateral for futures contracts or as Cash deposited with broker on the Statement 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.
Fair Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2012 (in thousands):
Statement of Assets and Liabilities |
Derivatives |
Fair Value | ||||
Unrealized appreciation of investments and futures contracts |
Equity Contracts* | $ 887 | ||||
Effect of derivative instruments not accounted for as hedging instruments for the six months ended April 30, 2012 (in thousands): | ||||||
Statement of Operations |
Derivatives |
Balance | ||||
Net realized gain (loss) from futures contracts |
Equity Contracts | $ 30,960 | ||||
Change in net unrealized appreciation or (depreciation) of futures contracts |
Equity Contracts | (12,866) |
*Includes cumulative appreciation or (depreciation) of futures contracts as reported in the Schedule of Investments footnotes. Only current days variation margin is reported within the Statement of Assets and Liabilities.
6. Federal Income and Excise Taxes
It is the policy of the Fund to qualify as a regulated investment company (RIC), by complying with all applicable provisions of Subchapter M of the Internal Revenue Code, as amended, 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.
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, 2011 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. GAAP. 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, 2012 and the fiscal year ended October 31, 2011 were as follows (in thousands):
Six Months Ended April 30, 2012 |
Year
Ended October 31, 2011 |
|||||||
(unaudited) | ||||||||
Distributions paid from: |
||||||||
Ordinary income* |
||||||||
Institutional Class |
$ 8,493 | $ | 7,510 | |||||
Y Class |
185 | 4 | ||||||
Investor Class |
197 | 3,709 | ||||||
Advisor Class |
- | 117 | ||||||
Retirement Class |
14 | - | ||||||
A Class |
4 | 1 | ||||||
AMR Class |
2,114 | 2,000 | ||||||
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|
|
|
|||||
Total distributions paid |
$11,007 | $ | 13,341 | |||||
|
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|
|
* For tax purposes, short-term capital gains are considered ordinary income distributions.
22
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
As of April 30, 2012, the components of distributable earnings (deficits) on a tax basis were as follows (in thousands):
Cost basis of investments for federal income tax purposes |
$ | 3,186,704 | ||
Unrealized appreciation |
522,950 | |||
Unrealized depreciation |
(146,304) | |||
|
|
|||
Net unrealized appreciation or (depreciation) |
376,646 | |||
Undistributed ordinary income |
4,438 | |||
Accumulated long-term gain or (loss) |
9,491 | |||
Other temporary differences |
889 | |||
|
|
|||
Distributable earnings (deficits) |
$ | 391,464 | ||
|
|
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 or (depreciation) are attributable primarily to the tax deferral of losses from wash sales, the realization for tax purposes of unrealized gains or (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, 2012 (in thousands):
Paid-in-capital |
$ | 162 | ||
Undistributed net investment income |
(785) | |||
Accumulated net realized gain (loss) |
623 | |||
Unrealized appreciation or (depreciation) of investments and futures contracts |
- |
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the RIC MOD) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. One of the more prominent changes addresses capital loss carryforwards. Under the RIC MOD, each Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.
Finally, the RIC MOD contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions. Except for the simplification provisions related to RIC qualification, the RIC MOD is effective for taxable years beginning after December 22, 2010. The provisions related to RIC qualification are effective for taxable years for which the extended due date of the tax return is after December 22, 2010.
As of April 30, 2012, the Fund did not have capital loss carryforward positions. The Fund utilized $118,516 of net capital loss carryforwards for the six months ended April 30, 2012 (in thousands).
23
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
4. Investment Transactions
The aggregate cost of purchases and proceeds from sales of investments, other than short-term obligations, for the six months ended April 30, 2012 were (in thousands) $867,310 and $755,356, respectively.
A summary of the Funds direct transactions and security lending collateral transactions in the Select Funds for the six months ended April 30, 2012 is set forth below (in thousands):
Type of Transaction |
Affiliate |
October 31, 2011 Shares/Fair Value |
Purchases | Sales | April 30, 2012 Shares/Fair Value | |||||||||||||||||
Direct |
USG Select Fund | $ | 20,000 | $ | - | $ | - | $ | 20,000 | |||||||||||||
Securities Lending |
USG Select Fund | 180,689 | 251,680 | 286,404 | 145,965 |
5. Securities Lending
The Fund may lend its securities to qualified financial institutions, such as certain broker-dealers, to earn additional income. The borrowers are required to secure their loans continuously with collateral in an amount at least equal to the fair value of the securities loaned, initially in an amount at least equal to 102% of the fair value of domestic securities loaned and 105% of the fair value of international securities loaned. Collateral is monitored and marked to market daily. Daily mark to market amounts are required to be paid to the borrower or received from the borrower by the end of the following business day. This one day settlement for mark to market amounts may result in the collateral being temporarily less than the value of the securities on loan or temporarily more than the required minimum collateral.
To the extent that a loan is collateralized by cash, such cash collateral shall be invested by the securities lending agent (the Agent) in money market mutual funds, and other short-term investments, provided the investments meet certain quality and diversification requirements.
Securities lending income is generated from the demand premium (if any) paid by the borrower to borrow a specific security and from the return on investment of cash collateral, reduced by negotiated rebate fees paid to the borrower and transaction costs. To the extent that a loan is secured by non-cash collateral, securities lending income is generated as a demand premium reduced by transaction costs. The Fund, the Agent, and the Manager retain 75%, 15%, and 10%, respectively, of the income generated from securities lending.
While securities are on loan, the Fund continues to receive any income associated with that security and any gain or loss in the market price that may occur during the term of the loan.
Securities lending transactions pose certain risks to the Fund, including that the borrower may not provide additional collateral when required or return the securities when due, that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower, that non-cash collateral may be subject to legal constraints in the event of a borrower bankruptcy, and that the cash collateral investments could become illiquid and unable to be used to return collateral to the borrower. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the cash collateral available for return to the borrower and any action which impairs its ability to liquidate non-cash collateral to satisfy a borrower default.
As of April 30, 2012, 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 | ||||||||
$ 151,446 |
$ - | $155,039 |
24
American Beacon Small Cap Value FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Cash collateral is listed in the Funds 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 Funds 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):
For the Six Months Ended April 30, 2012
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold |
15,410 | $ | 309,770 | 463 | $ | 9,016 | 3,688 | $ | 72,520 | 355 | $ | 6,900 | ||||||||||||||||||||
Reinvestment of dividends |
434 | 8,287 | 10 | 185 | 11 | 194 | - | - | ||||||||||||||||||||||||
Shares redeemed |
(9,969) | (199,461) | (282) | (5,723) | (10,036) | (195,733) | (424) | (8,069) | ||||||||||||||||||||||||
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Net increase (decrease) in shares outstanding |
5,875 | $ | 118,596 | 191 | $ | 3,478 | (6,337) | $ | (123,019) | (69) | $ | (1,169) | ||||||||||||||||||||
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Retirement Class | AMR Class | A Class | C Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold |
178 | $ | 3,292 | 6,732 | $ | 128,409 | 58 | $ | 1,131 | 26 | $ | 504 | ||||||||||||||||||||
Reinvestment of dividends |
1 | 14 | 111 | 2,114 | 0 | 4 | - | - | ||||||||||||||||||||||||
Shares redeemed |
(22) | (437) | (8,468) | (162,560) | (21) | (430) | (3) | (58) | ||||||||||||||||||||||||
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Net increase (decrease) in shares outstanding |
157 | $ | 2,869 | (1,625) | $ | (32,037) | 37 | $ | 705 | 23 | $ | 446 | ||||||||||||||||||||
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For the Year Ended October 31, 2011
|
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Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold |
32,139 | $ | 624,258 | 1,690 | $ | 33,343 | 14,401 | $ | 280,691 | 762 | $ | 14,511 | ||||||||||||||||||||
Reinvestment of dividends |
372 | 7,454 | 0 | 5 | 185 | 3,613 | 6 | 117 | ||||||||||||||||||||||||
Shares redeemed |
(16,620) | (326,085) | * | (176) | (3,142) | (20,730) | (395,525) | * | (811) | (15,684) | ||||||||||||||||||||||
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Net increase (decrease) in shares outstanding |
15,891 | $ | 305,627 | 1,514 | $ | 30,206 | (6,144) | $ | (111,221) | (43) | $ | (1,056) | ||||||||||||||||||||
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Retirement Class | AMR Class | A Class | C Class | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold |
95 | $ | 1,761 | 8,795 | $ | 167,845 | 122 | $ | 2,379 | 61 | $ | 1,118 | ||||||||||||||||||||
Reinvestment of dividends |
0 | 1 | 100 | 2,000 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Shares redeemed |
(15) | (261) | (8,847) | (178,901) | * | (23) | (406) | 0 | (1) | |||||||||||||||||||||||
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Net increase (decrease) in shares outstanding |
80 | $ | 1,501 | 48 | $ | (9,056) | 99 | $ | 1,973 | 61 | $ | 1,117 | ||||||||||||||||||||
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25
American Beacon Small Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | |||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, |
Year Ended October 31, | Six Months Ended |
Year Ended October 31, |
August 3 to |
||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 18.75 | $ | 17.84 | $ | 14.39 | $ | 12.53 | $ | 22.10 | $ | 22.53 | $ | 18.66 | $ | 17.76 | $ | 14.37 | $ | 14.03 | ||||||||||||||||||||
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Income from investment operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
0.08 | 0.08 | 0.08 | 0.10 | 0.25 | 0.22 | 0.08 | 0.06 | 0.14 | 0.00 | ||||||||||||||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
2.15 | 0.92 | 3.46 | 1.96 | (7.13) | 1.10 | 2.13 | 0.92 | 3.36 | 0.34 | ||||||||||||||||||||||||||||||
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Total income (loss) from investment operations | 2.23 | 1.00 | 3.54 | 2.06 | (6.88) | 1.32 | 2.21 | 0.98 | 3.50 | 0.34 | ||||||||||||||||||||||||||||||
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Less distributions: | ||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income |
(0.08) | (0.09) | (0.09) | (0.20) | (0.22) | (0.19) | (0.11) | (0.08) | (0.11) | | ||||||||||||||||||||||||||||||
Distributions from net realized gains on securities |
| | | | (2.47) | (1.56) | | | | | ||||||||||||||||||||||||||||||
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Total distributions | (0.08) | (0.09) | (0.09) | (0.20) | (2.69) | (1.75) | (0.11) | (0.08) | (0.11) | | ||||||||||||||||||||||||||||||
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Net asset value, end of period | $ | 20.90 | $ | 18.75 | $ | 17.84 | $ | 14.39 | $ | 12.53 | $ | 22.10 | $ | 20.76 | $ | 18.66 | $ | 17.76 | $ | 14.37 | ||||||||||||||||||||
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Total return A,B | 11.96%C | 5.57% | 24.71% | 16.97% | (34.84)% | 6.10% | 11.88%C | 5.49% | 24.44% | 2.42%C | ||||||||||||||||||||||||||||||
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Ratios and supplemental data: | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 2,177,621 | $ | 1,843,285 | $ | 1,470,084 | $ | 1,040,805 | $ | 826,232 | $ | 1,413,734 | $ | 36,509 | $ | 29,234 | $ | 931 | $ | 1 | ||||||||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||||||||||||||||||
Expenses, net of waivers |
0.81% | 0.82% | 0.81% | 0.84% | 0.81% | 0.80% | 0.91% | 0.94% | 0.91% | 1.11%D | ||||||||||||||||||||||||||||||
Expenses before waivers |
0.81% | 0.82% | 0.81% | 0.84% | 0.81% | 0.80% | 0.91% | 0.94% | 0.91% | 1.11%D | ||||||||||||||||||||||||||||||
Net investment income (loss), net of waivers |
0.87% | 0.47% | 0.52% | 0.87% | 1.36% | 0.94% | 0.77% | 0.30% | 0.39% | 0.03%D | ||||||||||||||||||||||||||||||
Net investment income (loss), before waivers |
0.87% | 0.47% | 0.52% | 0.87% | 1.36% | 0.94% | 0.77% | 0.30% | 0.39% | 0.03%D | ||||||||||||||||||||||||||||||
Portfolio turnover rate |
24%C | 59% | 59% | 61% | 62% | 52% | 24%C | 59% | 59% | 61%E |
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.
26
American Beacon Small Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
Investor Class | Advisor Class | |||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2012 |
Year Ended October 31, | Six Months Ended April 30, 2012 |
Year Ended October 31, | |||||||||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||
$ | 18.23 | $ | 17.40 | $ | 14.05 | $ | 12.22 | $ | 21.62 | $ | 22.08 | $ | 18.15 | $ | 17.33 | $ | 13.97 | $ | 12.13 | $ | 21.46 | $ | 21.94 | |||||||||||||||||||||||
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0.05 | 0.02 | 0.03 | 0.08 | 0.20 | 0.16 | 0.04 | (0.01) | 0.01 | 0.06 | 0.16 | 0.10 | |||||||||||||||||||||||||||||||||||
2.10 | 0.88 | 3.37 | 1.91 | (6.97) | 1.07 | 2.08 | 0.89 | 3.35 | 1.90 | (6.93) | 1.07 | |||||||||||||||||||||||||||||||||||
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2.15 | 0.90 | 3.40 | 1.99 | (6.77) | 1.23 | 2.12 | 0.88 | 3.36 | 1.96 | (6.77) | 1.17 | |||||||||||||||||||||||||||||||||||
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0.00 | (0.07) | (0.05) | (0.16) | (0.16) | (0.13) | | (0.06) | | (0.12) | (0.09) | (0.09) | |||||||||||||||||||||||||||||||||||
| | | | (2.47) | (1.56) | | | | | (2.47) | (1.56) | |||||||||||||||||||||||||||||||||||
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0.00 | (0.07) | (0.05) | (0.16) | (2.63) | (1.69) | | (0.06) | | (0.12) | (2.56) | (1.65) | |||||||||||||||||||||||||||||||||||
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$ | 20.38 | $ | 18.23 | $ | 17.40 | $ | 14.05 | $ | 12.22 | $ | 21.62 | $ | 20.27 | $ | 18.15 | $ | 17.33 | $ | 13.97 | $ | 12.13 | $ | 21.46 | |||||||||||||||||||||||
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11.76%C | 5.14% | 24.21% | 16.59% | (35.04)% | 5.83% | 11.68%C | 5.07% | 24.05% | 16.41% | (35.19)% | 5.55% | |||||||||||||||||||||||||||||||||||
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$ | 813,294 | $ | 843,400 | $ | 911,737 | $ | 719,239 | $ | 699,670 | $ | 1,316,188 | $ | 35,492 | $ | 33,032 | $ | 32,295 | $ | 28,333 | $ | 33,479 | $ | 69,112 | |||||||||||||||||||||||
1.18% | 1.17% | 1.18% | 1.15% | 1.06% | 1.05% | 1.31% | 1.32% | 1.32% | 1.31% | 1.31% | 1.32% | |||||||||||||||||||||||||||||||||||
1.18% | 1.17% | 1.18% | 1.15% | 1.06% | 1.05% | 1.31% | 1.32% | 1.32% | 1.34% | 1.31% | 1.32% | |||||||||||||||||||||||||||||||||||
0.51% | 0.12% | 0.17% | 0.59% | 1.12% | 0.70% | 0.38% | (0.02)% | 0.03% | 0.48% | 0.86% | 0.43% | |||||||||||||||||||||||||||||||||||
0.51% | 0.12% | 0.17% | 0.59% | 1.12% | 0.70% | 0.38% | (0.02)% | 0.03% | 0.44% | 0.86% | 0.43% | |||||||||||||||||||||||||||||||||||
24% | C | 59% | 59% | 61% | 62% | 52% | 24% | C | 59% | 59% | 61% | 62% | 52% |
27
American Beacon Small Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
Retirement Class | A Class | C Class | ||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2012 |
2011 | 2010 | May 1 to October 31, 2009 |
Six Months Ended April 30, 2012 |
2011 | May
17 to October 31, 2010 |
Six Months Ended April 30, 2012 |
2011 | September 1 to October 31, 2010 |
|||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 18.01 | $ | 17.23 | $ | 13.95 | $ | 11.58 | $ | 18.19 | $ | 17.39 | $ | 17.33 | $ | 18.04 | $ | 17.37 | $ | 15.62 | ||||||||||||||||||||
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Income from investment operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
0.05 | 0.02 | 0.04 | (0.02) | 0.04 | 0.03 | 0.00 | (0.02) | (0.04) | (0.01) | ||||||||||||||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
2.01 | 0.81 | 3.28 | 2.39 | 2.08 | 0.83 | 0.06 | 2.05 | 0.74 | 1.76 | ||||||||||||||||||||||||||||||
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Total income (loss) from investment operations | 2.06 | 0.83 | 3.32 | 2.37 | 2.12 | 0.86 | 0.06 | 2.03 | 0.70 | 1.75 | ||||||||||||||||||||||||||||||
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Less distributions: | ||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income |
(0.07) | (0.05) | (0.04) | | (0.04) | (0.06) | | | (0.03) | | ||||||||||||||||||||||||||||||
Distributions from net realized gains on securities |
| | | | | | | | | | ||||||||||||||||||||||||||||||
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Total distributions | (0.07) | (0.05) | (0.04) | | (0.04) | (0.06) | | | (0.03) | | ||||||||||||||||||||||||||||||
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Net asset value, end of period | $ | 20.00 | $ | 18.01 | $ | 17.23 | $ | 13.95 | $ | 20.27 | $ | 18.19 | $ | 17.39 | $ | 20.07 | $ | 18.04 | $ | 17.37 | ||||||||||||||||||||
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Total return A,B | 11.49%C | 4.79% | 23.82% | 20.47%C | 11.62%C | 4.92% | 0.35%C | 11.25%C | 4.00% | 11.20%C | ||||||||||||||||||||||||||||||
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Ratios and supplemental data: | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 5,152 | $ | 1,817 | $ | 360 | $ | 1 | $ | 2,775 | $ | 1,822 | $ | 18 | $ | 1,689 | $ | 1,106 | $ | 6 | ||||||||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||||||||||||||||||
Expenses, net of waivers |
1.58% | 1.62% | 1.54% | 1.53%D | 1.38% | 1.57% | 1.28%D | 2.15% | 2.60% | 2.10%D | ||||||||||||||||||||||||||||||
Expenses before waivers |
1.58% | 1.62% | 1.54% | 1.53%D | 1.40% | 1.57% | 1.28%D | 2.16% | 2.60% | 2.69%D | ||||||||||||||||||||||||||||||
Net investment income (loss), net of waivers |
0.04% | (0.35)% | (0.20)% | (0.28)%D | 0.29% | (0.32)% | 0.01%D | (0.49)% | (1.36)% | (1.28)%D | ||||||||||||||||||||||||||||||
Net investment income (loss), before waivers |
0.04% | (0.35)% | (0.20)% | (0.28)%D | 0.27% | (0.32)% | 0.01%D | (0.50)% | (1.36)% | (1.86)%D | ||||||||||||||||||||||||||||||
Portfolio turnover rate |
24%C | 59% | 59% | 61%E | 24%C | 59% | 59%F | 24%C | 59% | 59%F |
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.
28
American Beacon Small Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
AMR Class | ||||||||||||||||||||||
Six Months Ended April 30, |
Year Ended October 31, | |||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||
(unaudited) | ||||||||||||||||||||||
$ | 18.71 | $ | 17.76 | $ | 14.32 | $ | 12.48 | $ | 22.05 | $ | 22.48 | |||||||||||
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0.17 | 0.13 | 0.18 | 0.11 | 0.33 | 0.30 | |||||||||||||||||
2.08 | 0.92 | 3.38 | 1.97 | (7.15) | 1.08 | |||||||||||||||||
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2.25 | 1.05 | 3.56 | 2.08 | (6.82) | 1.38 | |||||||||||||||||
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(0.13) | (0.10) | (0.12) | (0.24) | (0.28) | (0.25) | |||||||||||||||||
| | | | (2.47) | (1.56) | |||||||||||||||||
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(0.13) | (0.10) | (0.12) | (0.24) | (2.75) | (1.81) | |||||||||||||||||
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$ | 20.83 | $ | 18.71 | $ | 17.76 | $ | 14.32 | $ | 12.48 | $ | 22.05 | |||||||||||
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12.09%C | 5.85% | 25.00% | 17.30% | (34.71)% | 6.39% | |||||||||||||||||
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|||||||||||
$ | 343,359 | $ | 338,723 | $ | 320,715 | $ | 271,066 | $ | 209,927 | $ | 411,406 | |||||||||||
0.56% | 0.56% | 0.57% | 0.59% | 0.56% | 0.54% | |||||||||||||||||
0.56% | 0.56% | 0.57% | 0.59% | 0.56% | 0.54% | |||||||||||||||||
1.15% | 0.72% | 0.76% | 1.11% | 1.62% | 1.21% | |||||||||||||||||
1.15% | 0.72% | 0.76% | 1.11% | 1.62% | 1.21% | |||||||||||||||||
24%C | 59% | 59% | 61% | 62% | 52% |
29
Delivery of Documents
eDelivery is NOW AVAILABLE- Stop traditional mail delivery and receive your
shareholder reports and summary prospectus on-line. Sign up at
www.americanbeaconfunds.com
If you invest in the Fund through a financial institution, you may be able to receive the Funds 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 institutions name or contact your financial institution directly.
To obtain more information about the Fund:
By E-mail: american_beacon.funds@ambeacon.com
|
On the Internet: Visit our website at www.americanbeaconfunds.com
| |||
By Telephone: Institutional Class Call (800) 658-5811 AMR ClassSM Call (800) 345-2345 Investor Class®, Retirement, and Advisor Class Call (800) 388-3344
|
By Mail: American Beacon Funds P.O. Box 219643 Kansas City, MO 64121-9643
| |||
Availability of Quarterly Portfolio Schedules
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 Funds Forms N-Q are available on the SECs website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SECs Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-1520. Information regarding the operation of the SECs Public Reference Room may be obtained by calling (202) 551-8090. A complete schedule of the Funds portfolio holdings is also available on the Funds website (www.americanbeaconfunds.com) approximately twenty days after the end of each month. |
Availability of Proxy Voting Policy and Records
A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Funds Statement of Additional Information, is available free of charge on the Funds website (www.americanbeaconfunds.com) and by calling 1-800-967-9009 or by accessing the SECs website at www.sec.gov. The Funds proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Funds Forms N-PX are available on the SECs website at www.sec.gov. The Funds 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 American Beacon Small Cap Value Fund are service marks of American Beacon Advisors, Inc.
SAR 04//12
About American Beacon Advisors |
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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. |
1 | |||||||||
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2-8 | |||||||||
American Beacon Schedules of Investments | ||||||||||
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10 | |||||||||
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15 | |||||||||
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Back Cover | |||||||||
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. |
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, 2012 |
![]() |
Over the past six months, the global equity markets generally rallied. The overall market volatility that characterized so much of 2011 continued through November and December but eased in the first months of 2012. Among other things, action in Europe to address Greeces debt and policy efforts designed to help stabilize the broader European financial system helped reassure investors and the world markets through April.
Nonetheless, the last six months have highlighted the potential benefits to long-term investors of owning funds that are able to participate in the markets upward movement, while seeking to protect value when the markets turn down. |
For the six-month period ended April 30, 2012:
- American Beacon Emerging Markets Fund (Institutional Class) returned 3.69%.
- American Beacon International Equity Fund (Institutional Class) returned 4.08%.
With continued uncertainty in the European Union and an upcoming Presidential election, we may again see further market gyrations in the months to come. Regardless of headlines, American Beacon remains focused on seeking opportunities and meeting market challenges to deliver the type of consistency in performance and service that our shareholders value.
Thank you for your continued investment in the American Beacon Funds. For additional information about the Funds 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
April 30, 2012 (Unaudited)
2 |
American Beacon Emerging Markets Fund SM
Performance Overview
April 30, 2012 (Unaudited)
3 |
American Beacon Emerging Markets FundSM
Performance Overview
April 30, 2012 (Unaudited)
4 |
American Beacon Emerging Markets FundSM
Fund Expenses
April 30, 2012 (Unaudited)
5 |
International Equity Market Overview
April 30, 2012 (Unaudited)
6 |
American Beacon International Equity FundSM
Performance Overview
April 30, 2012 (Unaudited)
7 |
American Beacon International Equity FundSM
Performance Overview
April 30, 2012 (Unaudited)
8 |
American Beacon International Equity FundSM
Fund Expenses
April 30, 2012 (Unaudited)
9 |
American Beacon Emerging Markets FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
10
American Beacon Emerging Markets FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
11
American Beacon Emerging Markets FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
12
American Beacon Emerging Markets FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
13
American Beacon Emerging Markets FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Futures Contracts Open on April 30, 2012: (000s) |
Description | Type | Number of Contracts |
Expiration Date | Contract Value | Unrealized Appreciation (Depreciation) |
|||||||||
MSCI Emerging Market EMini Future |
Long | 105 | June, 2012 | $ | 5,352 | $ | (110 | ) |
Foreign Currency Contracts open at April 30, 2012: (000s) |
Type |
Currency | Principal Amount Covered by Contract |
Settlement Date |
Counterparty | Unrealized Appreciation |
Unrealized (Depreciation) |
Net Unrealized Appreciation (Depreciation) |
|||||||||||||
Sell | JPY | $ 20,375 | 5/10/2012 | UAG | - | $ | (5 | ) | $ | (5 | ) |
Glossary: | ||||
Counterparty Abbreviations: |
||||
UAG |
UBS AG | |||
Currency Abbreviations: |
||||
JPY |
Japanese Yen |
See accompanying notes
14
American Beacon International Equity FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
15
American Beacon International Equity FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
16
American Beacon International Equity FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
17
American Beacon International Equity FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Futures Contracts Open on April 30, 2012: (000s) |
| |||||||||||||
Description | Type | Number of Contracts |
Expiration Date | Contract Value | Unrealized Appreciation (Depreciation) |
|||||||||
Australia SPI Index |
Long | 69 | June, 2012 | $ | 7,693 | $ | 171 | |||||||
Canada S&PCDA 60 Index |
Long | 77 | June, 2012 | 10,860 | 3 | |||||||||
France CAC 40 Index |
Long | 191 | June, 2012 | 8,174 | (432 | ) | ||||||||
Germany DAX Index |
Long | 34 | June, 2012 | 6,944 | (141 | ) | ||||||||
Hang Seng Index |
Long | 20 | May, 2012 | 2,550 | 55 | |||||||||
Italy MIB 30 Index |
Long | 20 | June, 2012 | 2,111 | (174 | ) | ||||||||
Netherlands 200 AEX Index |
Long | 26 | May, 2012 | 2,107 | 15 | |||||||||
Spain IBEX 35 Index |
Long | 25 | May, 2012 | 2,928 | (77 | ) | ||||||||
Sweden OMX Index |
Long | 182 | May, 2012 | 2,687 | 67 | |||||||||
Tokyo FE TOPIX Index |
Long | 188 | June, 2012 | 17,871 | (508 | ) | ||||||||
UK FTSE 100 Index |
Long | 223 | June, 2012 | 20,056 | (159 | ) | ||||||||
|
|
|
|
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$ | 83,982 | $ | (1,180 | ) | ||||||||||
|
|
|
|
Foreign Currency Contracts Open on April 30, 2012: |
| |||||||||||||||||||||
Type | Currency | Principal Amount Covered by Contract |
Settlement Date | Counterparty | Unrealized Appreciation |
Unrealized (Depreciation) |
Net Unrealized Appreciation (Depreciation) |
|||||||||||||||
Buy | AUD | 4,979,000 | 6/15/2012 | SOG | $ | - | $ | 43,502 | ) | $ | (43,502) | |||||||||||
Buy | AUD | 757,000 | 6/15/2012 | SCB | - | (19,816 | ) | (19,816) | ||||||||||||||
Buy | AUD | 837,000 | 6/15/2012 | MSC | - | (1,328 | ) | (1,328) | ||||||||||||||
Buy | AUD | 965,000 | 6/15/2012 | CBK | 14,709 | - | 14,709 | |||||||||||||||
Sell | AUD | 1,039,000 | 6/15/2012 | BOA | - | (13,889 | ) | (13,889) | ||||||||||||||
Sell | AUD | 1,078,000 | 6/15/2012 | MSC | 5,850 | - | 5,850 | |||||||||||||||
Buy | CAD | 1,194,000 | 6/15/2012 | SCB | 4,890 | - | 4,890 | |||||||||||||||
Buy | CAD | 1,122,000 | 6/15/2012 | MSC | 8,101 | - | 8,101 | |||||||||||||||
Buy | CAD | 1,429,000 | 6/15/2012 | CBK | 8,929 | - | 8,929 | |||||||||||||||
Buy | CAD | 7,517,000 | 6/15/2012 | SOG | 91,004 | - | 91,004 | |||||||||||||||
Sell | CAD | 1,499,000 | 6/15/2012 | MSC | - | (8,189 | ) | (8,189) | ||||||||||||||
Sell | CAD | 1,546,000 | 6/15/2012 | BOA | - | (3,912 | ) | (3,912) | ||||||||||||||
Buy | CHF | 779,000 | 6/15/2012 | MSC | - | (3,427 | ) | (3,427) | ||||||||||||||
Buy | CHF | 688,000 | 6/15/2012 | SCB | 323 | - | 323 | |||||||||||||||
Buy | CHF | 806,000 | 6/15/2012 | CBK | 11,493 | - | 11,493 | |||||||||||||||
Buy | CHF | 5,323,000 | 6/15/2012 | CBK | 50,949 | - | 50,949 | |||||||||||||||
Sell | CHF | 820,000 | 6/15/2012 | MSC | - | (14,390 | ) | (14,390) | ||||||||||||||
Sell | CHF | 990,000 | 6/15/2012 | SCB | - | (3,294 | ) | (3,294) | ||||||||||||||
Buy | EUR | 2,912,000 | 6/15/2012 | MSC | - | (28,119 | ) | (28,119) | ||||||||||||||
Buy | EUR | 1,925,000 | 6/15/2012 | SCB | - | (6,365 | ) | (6,365) | ||||||||||||||
Buy | EUR | 2,330,000 | 6/15/2012 | CBK | 40,991 | - | 40,991 | |||||||||||||||
Buy | EUR | 10,881,000 | 6/15/2012 | MSC | 89,178 | - | 89,178 | |||||||||||||||
Sell | EUR | 2,649,000 | 6/15/2012 | MSC | - | (40,566 | ) | (40,566) | ||||||||||||||
Sell | EUR | 2,458,000 | 6/15/2012 | SCB | - | (2,688 | ) | (2,688) | ||||||||||||||
Sell | EUR | 4,218,407 | 7/26/2012 | SSB | - | (11,611 | ) | (11,611) | ||||||||||||||
Sell | EUR | 4,218,407 | 7/26/2012 | BNY | - | (9,798 | ) | (9,798) | ||||||||||||||
Buy | GBP | 1,485,000 | 6/15/2012 | MSC | 40,189 | - | 40,189 | |||||||||||||||
Buy | GBP | 1,302,000 | 6/15/2012 | SCB | 53,699 | - | 53,699 | |||||||||||||||
Buy | GBP | 1,732,000 | 6/15/2012 | CBK | 70,474 | - | 70,474 | |||||||||||||||
Buy | GBP | 8,643,000 | 6/15/2012 | MSC | 426,128 | - | 426,128 | |||||||||||||||
Sell | GBP | 1,922,000 | 6/15/2012 | MSC | - | (100,277 | ) | (100,277) | ||||||||||||||
Sell | GBP | 1,845,000 | 6/15/2012 | SCB | - | (60,485 | ) | (60,485) | ||||||||||||||
Buy | JPY | 165,631,000 | 6/15/2012 | SCB | 44,368 | - | 44,368 | |||||||||||||||
Buy | JPY | 210,273,000 | 6/15/2012 | CBK | 80,412 | - | 80,412 | |||||||||||||||
Buy | JPY | 367,434,000 | 6/15/2012 | MSC | 177,506 | - | 177,506 | |||||||||||||||
Buy | JPY | 1,020,298,000 | 6/15/2012 | CBK | 203,583 | - | 203,583 | |||||||||||||||
Sell | JPY | 239,960,000 | 6/15/2012 | MSC | - | (127,197 | ) | (127,197) | ||||||||||||||
Sell | JPY | 241,936,000 | 6/15/2012 | BOA | - | (113,715 | ) | (113,715) | ||||||||||||||
Sell | JPY | 82,583,305 | 5/7/2012 | SSB | - | (8,346 | ) | (8,346) |
See accompanying notes
18
American Beacon International Equity FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Type | Currency | Principal Amount Covered by Contract |
Settlement Date | Counterparty | Unrealized Appreciation |
Unrealized (Depreciation) |
Net Unrealized Appreciation/ (Depreciation) |
|||||||||||||||
Buy | SEK | 2,165,000 | 6/15/2012 | MSC | $ | - | $ | (1,848 | ) | $ | (1,848 | ) | ||||||||||
Buy | SEK | 2,125,000 | 6/15/2012 | SCB | - | (243 | ) | (243 | ) | |||||||||||||
Buy | SEK | 2,472,000 | 6/15/2012 | CBK | 2,230 | - | 2,230 | |||||||||||||||
Buy | SEK | 12,107,000 | 6/15/2012 | CBK | 18,430 | - | 18,430 | |||||||||||||||
Sell | SEK | 2,866,000 | 6/15/2012 | MSC | - | (4,950 | ) | (4,950 | ) | |||||||||||||
Sell | SEK | 2,757,000 | 6/15/2012 | SCB | 3,798 | - | 3,798 | |||||||||||||||
|
|
|||||||||||||||||||||
$ | 1,447,235 | $ | (627,956 | ) | $ | 819,279 | ||||||||||||||||
|
|
Glossary: | ||||||||||||
Counterparty Abbreviations: | ||||||||||||
BOA
|
Bank of America, N.A.
|
MSC
|
Morgan Stanley and Co, Inc.
|
SSB
|
State Street Bank and Trust
| |||||||
BNY
|
Mellon Bank, N.A.
|
SCB
|
Standard Charter Bank
|
|||||||||
CBK |
Citibank, N.A. | SOG | Societe Generale | |||||||||
Currency Abbreviations: | ||||||||||||
AUD
|
Australian Dollar
|
EUR
|
Euro
|
JPY
|
Japanese Yen
| |||||||
CAD
|
Canadian Dollar
|
GBP
|
British Pound
|
SEK
|
Swedish Krona
| |||||||
CHF |
Swiss Franc |
See accompanying notes
19
American Beacon FundsSM
Statements of Assets and Liabilities
April 30, 2012 (in thousands, except share and per share amounts) (Unaudited)
See accompanying notes
20
American Beacon FundsSM
Statements of Operations
For the Six Months Ended April 30, 2012 (in thousands) (Unaudited)
See accompanying notes
21
American Beacon FundsSM
Statements of Changes in Net Assets (in thousands)
See accompanying notes
22
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
1. Organization and Significant Accounting Policies
American Beacon Funds (the Trust), which is comprised of 24 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 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 |
Each class offered by the Trust has equal rights as to assets and voting privileges. Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains and losses of each class are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include administrative service fees, service fees, and distribution fees and vary amongst the classes as described more fully in Note 2.
New Accounting Pronouncements
In May 2011, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and International Financial Reporting Standards (IFRSs). FASB concluded that the amendments in this ASU will improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs. The ASU is effective prospectively during interim or annual periods beginning on or after December 15, 2011.
Management has evaluated the implications of these changes and determined that the impact will only affect the disclosure requirements on the financial statements.
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 multiple investment advisors which have entered into separate
23
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
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, 2012 were as follows (dollars in thousands):
Management Fee Rate |
Management Fee |
Amounts paid to |
Net Amounts | |||||
Emerging Markets |
0.60%-0.95% | $527 | $493 | $34 | ||||
International Equity |
0.20%-0.55% | $2,062 | $1,740 | $322 |
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, 2012 securities lending fees paid to the Manager on behalf of the International Equity Fund were $66,449.
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, 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 and C Classes for the six months ended April 30, 2012 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 separate fees will 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) have 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 and C Classes for the six months ended April 30, 2012 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, 2012 were less than $500.
24
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
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, 2012, fees earned by the Manager from the Select Funds were as follows:
Direct Investments in Select Funds |
Securities
Lending Collateral Invested in Select Funds |
Total | ||||||||||||
International Equity |
$ 4,211 | $ 9,064 | $ 13,275 |
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. This program provides an alternative credit facility allowing the Funds to borrow from other participating Funds. The Funds did not utilize the credit facility during the period.
Expense Reimbursement Plan
The Manager contractually agreed to reimburse the Emerging Markets Fund to the extent that total annual operating expenses exceeded the Funds expense cap. For the six months ended April 30, 2012, the Manager reimbursed expenses as follows:
Expense Caps | ||||||||||||||||||
Fund |
Class | 11/1/11 to 2/29/12 |
3/1/12 to 4/30/12 |
Reimbursed Expenses |
Expiration of Reimbursements | |||||||||||||
Emerging Markets |
Institutional | 1.35% | 1.35% | $ 10,428 | 2015 | |||||||||||||
Emerging Markets |
Y | 1.45% | 1.45% | 4,396 | 2015 | |||||||||||||
Emerging Markets |
Investor | 1.79% | 1.79% | 6,208 | 2015 | |||||||||||||
Emerging Markets |
A | 1.79% | 1.79% | 726 | 2015 | |||||||||||||
Emerging Markets |
C | 2.54% | 2.54% | 36 | 2015 | |||||||||||||
International Equity |
Retirement | 1.47% | 1.47% | 47 | 2015 | |||||||||||||
International Equity |
A | 1.25% | 1.25% | - | 2015 | |||||||||||||
International Equity |
C | 1.99% | 1.99% | 47 | 2015 |
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 Emerging Markets Fund is $28,821 and $67,581 expiring in 2013 and 2014, respectively and for the International Equity Fund $3,363 expiring in 2014. For the six months ended April 30, 2012, the Funds have not recorded a liability for potential reimbursements, due to the current assessment that a reimbursement is unlikely.
3. Security Valuation and Fair Value Measurements
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.
25
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Investments in mutual funds are valued at the closing net asset value (NAV) 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 the 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 Trusts Board of Trustees (the Board).
Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, a Fund is required to deposit with its futures broker, an amount of cash or U.S. Government and Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value (variation margin) is recorded by the Fund. Gains or losses are recognized, but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities.
For valuation purposes, the last quoted prices of non-U.S. equity securities may be adjusted under the circumstances described below. If the Fund determines that developments between the close of a foreign market and the close of the Exchange will, in its judgment, materially affect the value of some or all of its portfolio securities, the Fund will adjust the previous closing prices to reflect what it believes to be the fair value of the securities as of the close of the Exchange. In deciding whether it is necessary to adjust closing prices to reflect fair value, the Fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. A Fund may also fair value securities in other situations, such as when a particular foreign market is closed, but the Fund is open. The Fund uses outside pricing services to provide it with closing prices and information to evaluate and/or adjust those prices. The Fund cannot predict how often it will use closing prices and how often it will determine it necessary to adjust those prices to reflect fair value. As a means of evaluating its security valuation process, the Fund routinely compares closing prices, the next days opening prices in the same markets, and adjusted prices.
Valuation Inputs
Various inputs may be used to determine the fair 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 Funds own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.
Level 1 and Level 2 trading assets and trading liabilities, at fair value
Common stocks and financial derivative instruments, such as futures contracts that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are
26
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
categorized as Level 1 of the fair value hierarchy. Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the close of the Exchange. These securities are valued using pricing service providers that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.
Investments in registered open-end investment management companies will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Short-term investments having a maturity of 60 days or less are generally valued at amortized cost which approximates fair value. These investments are categorized as Level 2 of the fair value hierarchy.
Over-the-counter financial derivative instruments, such as foreign currency contracts, derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of broker dealer quotations or pricing service providers. Depending on the product and the terms of the transaction, the fair value of the financial derivative contracts can be estimated by a pricing service provider using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves, dividends, and exchange rates. Financial derivatives that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
Level 3 trading assets and trading liabilities, at fair value
The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of the fair value hierarchy are as follows:
Securities and other assets for which market quotes are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction and are categorized as Level 3 of the fair value hierarchy.
Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the Exchange close, that materially affect the values of a Funds securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade does not open for trading for the entire day and no other market prices are available. The Board has delegated to the Manager the responsibility for monitoring significant events that may materially affect the values of a Funds securities or assets and for determining whether the value of the applicable securities or assets should be re-evaluated in light of such significant events.
The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation methods to the Manager. For instances in which daily market quotes are not readily available, investments may be valued, pursuant to guidelines established by the Board. In the event that the security or asset cannot be valued pursuant to one of the valuation methods established by the Board, the fair value of the security or asset will be determined in good faith by the Valuation Committee, generally based upon recommendations provided by the Manager.
When a Fund uses fair valuation methods applied by the Manager that use significant unobservable inputs to determine its NAV, the securities priced using this methodology are categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the
27
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Trusts policy is intended to result in a calculation of a Funds NAV that fairly reflects security values as of the time of pricing, the Trust cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that a Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ from the value that would be realized if the securities were sold.
For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in and out of the Level 3 category during the period. The end of period timing recognition is used for the significant transfers between Levels of the Funds assets and liabilities. In accordance with the requirements of U.S. GAAP, a fair value hierarchy and Level 3 reconciliation, if any, have been included in the Notes to the Schedule of Investments for each respective Fund.
The Funds investments are summarized by level based on the inputs used to determine their values. U.S. GAAP also requires all significant transfers between any levels to be disclosed. During the six months ended April 30, 2012, the Emerging Markets Fund and International Equity Fund transferred foreign common and foreign preferred stock with a value of $180,640 and $1,079,171, respectively, from Level 2 to Level 1 as of the end of the period in accordance with fair value procedures established by the Board. As of April 30, 2012, the Funds investments were classified as described below: (in thousands)
Emerging Markets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Foreign Preferred Stocks |
$ | 4,025 | $ | - | $ | - | $ | 4,025 | ||||||||
Foreign Common Stocks |
122,724 | - | - | 122,724 | ||||||||||||
U.S. Common Stocks |
1,604 | - | - | 1,604 | ||||||||||||
Short-Term Investments |
4,616 | - | - | 4,616 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ | 132,969 | $ | - | $ | - | $ | 132,969 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Forward Exchange Contracts - Assets |
$ | - | $ | - | $ | - | $ | - | ||||||||
Forward Exchange Contracts - Liabilities |
(5 | ) | - | - | (5 | ) | ||||||||||
Futures Contracts |
(110 | ) | - | - | (110 | ) | ||||||||||
International Equity |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Foreign Preferred Stocks |
$ | 107 | $ | 77 | $ | - | $ | 184 | ||||||||
Foreign Common Stocks |
1,282,193 | - | - | 1,282,193 | ||||||||||||
Foreign Rights |
107 | - | - | 107 | ||||||||||||
U.S. Common Stocks |
5,812 | - | - | 5,812 | ||||||||||||
Short-Term Investments |
87,683 | - | - | 87,683 | ||||||||||||
Securities Lending Collateral invested in Money Market Funds |
104,115 | - | - | 104,115 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ | 1,480,017 | $ | 77 | $ | - | $ | 1,480,094 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Forward Exchange Contracts - Assets |
$ | 1,447 | $ | - | $ | - | $ | 1,447 | ||||||||
Forward Exchange Contracts - Liabilities |
(628 | ) | - | - | (628 | ) | ||||||||||
Futures Contracts |
(1,180 | ) | - | - | (1,180 | ) |
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 NAV. 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.
28
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
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 fair values of securities held and is reported with all other foreign currency gains and losses in the Funds Statements of Operations.
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 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 Funds 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. GAAP 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 Emerging Markets Fund imposes 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 Fund. The first-in, first-out method is used to determine the holding period. The fee is allocated to all classes of the Fund pro-rata based on their respective net assets.
Other
Under the Trusts organizational documents, its officers and trustees 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 Trusts 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.
29
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
4. Securities and Other Investments
Restricted Securities
Certain Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities may be sold privately, but are required to be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933. Disposal of restricted securities may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted securities outstanding at the period ended April 30, 2012 are disclosed in the Notes to the Schedules of Investments.
5. Financial Derivative Instruments
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 a portion of the face value of the futures contract. A Fund usually reflects this amount on the Schedule of Investments as a U.S. Treasury Bill held as collateral for futures contracts or as Cash deposited with broker 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.
30
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
The following is a summary of the fair valuations of the Funds derivative instruments categorized by risk exposure (1) (3):
Emerging Markets
Fair Values of financial instruments on the Statements of Assets and Liabilities not accounted for as hedging instruments as of April 30, 2012 (in thousands):
Assets |
Equity contracts |
Foreign
exchange contracts |
Total | |||||||||
Unrealized appreciation of foreign currency contracts |
$ | - | $ | - | $ | - | ||||||
|
|
|
|
|
|
|||||||
$ | - | $ | - | $ | - | |||||||
|
|
|
|
|
|
|||||||
Liabilities |
Equity contracts |
Foreign exchange contracts |
Total | |||||||||
Payable for variation margin from open futures contracts (2) |
$ | (3) | $ | - | $ | (3) | ||||||
Unrealized depreciation of foreign currency contracts |
- | (5) | (5) | |||||||||
|
|
|
|
|
|
|||||||
$ | (3) | $ | (5) | $ | (8) | |||||||
|
|
|
|
|
|
The effect of financial derivative instruments on the Statements of Operations for the six months ended April 30, 2012 (in thousands):
Realized gain (loss) from derivatives recognized as a result from operations: | Equity contracts |
Foreign exchange contracts |
Total | |||||||||
Net realized gain (loss) from futures contracts |
$ | 505 | $ | - | $ | 505 | ||||||
Net realized gain (loss) from foreign currency transactions |
- | (32) | (32) | |||||||||
|
|
|
|
|
|
|||||||
$ | 505 | $ | (32) | $ | 473 | |||||||
|
|
|
|
|
|
|||||||
Net change in unrealized appreciation or (depreciation) of derivatives recognized as a result of operations: |
Equity contracts |
Foreign exchange contracts |
Total | |||||||||
Change in net unrealized appreciation or (depreciation) of futures contracts |
$ | 2,309 | $ | - | $ | 2,309 | ||||||
Change in net unrealized appreciation or (depreciation) of foreign currency translations |
- | (1,806) | (1,806) | |||||||||
|
|
|
|
|
|
|||||||
$ | 2,309 | $ | (1,806) | $ | 503 | |||||||
|
|
|
|
|
|
International Equity
Fair Values of financial instruments on the Statements of Assets and Liabilities not accounted for as hedging instruments as of April 30, 2012 (in thousands):
Assets |
Equity contracts |
Foreign
exchange contracts |
Total | |||||||||
Unrealized appreciation of foreign currency contracts |
$ | - | $ | 1,447 | $ | 1,447 | ||||||
|
|
|
|
|
|
|||||||
$ | - | $ | 1,447 | $ | 1,447 | |||||||
|
|
|
|
|
|
|||||||
Liabilities |
Equity contracts |
Foreign exchange contracts |
Total | |||||||||
Payable for variation margin from open futures contracts (2) |
$ | (1,180) | $ | - | $ | (1,180) | ||||||
Unrealized depreciation of foreign currency contracts |
- | (628) | (628) | |||||||||
|
|
|
|
|
|
|||||||
$ | (1,180) | $ | (628) | $ | (1,808) | |||||||
|
|
|
|
|
|
The effect of financial derivative instruments on the Statements of Operations for the six months ended April 30, 2012 (in thousands):
Realized gain (loss) from derivatives recognized as a result from operations: | Equity contracts |
Foreign exchange contracts |
Total | |||||||||
Net realized gain (loss) from futures contracts |
$ | 5,924 | $ | - | $ | 5,924 | ||||||
Net realized gain (loss) from foreign currency transactions |
- | (297) | (297) | |||||||||
|
|
|
|
|
|
|||||||
$ | 5,924 | $ | (297) | $ | 5,897 | |||||||
|
|
|
|
|
|
|||||||
Net change in unrealized appreciation or (depreciation) of derivatives recognized as a result of operations: |
Equity contracts |
Foreign exchange contracts |
Total | |||||||||
Change in net unrealized appreciation or (depreciation) of futures contracts |
$ | 4,329 | $ | - | $ | 4,329 | ||||||
Change in net unrealized appreciation or (depreciation) of foreign currency translations |
- | (46) | (46) | |||||||||
|
|
|
|
|
|
|||||||
$ | 4,329 | $ | (46) | $ | 4,375 | |||||||
|
|
|
|
|
|
(1) | See Note 3 in the Notes to Financial Statements for additional information. |
(2) | Only current days variation margin is reported within the Statements of Assets and Liabilities. The variation margin is included in the open futures cumulative appreciation or (depreciation) as reported in the Notes to the Schedules of Investments. |
(3) | The volume of derivative activity described above is reflective of the derivative activity through the current period of operations. |
31
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
6. Federal Income and Excise Taxes
It is the policy of each Fund to qualify as a regulated investment company (RIC), by complying with all applicable provisions of Subchapter M of the Internal Revenue Code, as amended, 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 treaded 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, 2011 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. GAAP. 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, 2012 and the year ended October 31, 2011 were as follows (in thousands):
Emerging Markets | International Equity | |||||||||||||||||||
Six Months
Ended April 30, 2012 |
Year Ended October 31, 2011 |
Six Months
Ended April 30, 2012 |
Year Ended October 31, 2011 | |||||||||||||||||
Distributions paid from: |
(unaudited) | (unaudited) | ||||||||||||||||||
Ordinary income* |
||||||||||||||||||||
Institutional Class |
$ 105 | $ 85 | $ 18,420 | $ 14,155 | ||||||||||||||||
Y Class |
62 | - | 32 | 7 | ||||||||||||||||
Investor Class |
71 | 43 | 12,396 | 8,721 | ||||||||||||||||
Advisor Class |
- | - | 28 | 13 | ||||||||||||||||
A Class |
4 | - | 13 | - | ||||||||||||||||
C Class |
- | - | 3 | - | ||||||||||||||||
AMR Class |
1,312 | 942 | 14,493 | 15,008 | ||||||||||||||||
Long-term capital gains* |
||||||||||||||||||||
Institutional Class |
905 | - | - | - | ||||||||||||||||
Y Class |
572 | - | - | - | ||||||||||||||||
Investor Class |
1,012 | - | - | - | ||||||||||||||||
Advisor Class |
- | - | - | - | ||||||||||||||||
A Class |
46 | - | - | - | ||||||||||||||||
C Class |
1 | - | - | - | ||||||||||||||||
AMR Class |
12,236 | - | - | - | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions paid |
$16,326 | $1,070 | $45,385 | $37,904 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
*For tax purposes, short-term capital gains are considered ordinary income distributions. |
|
As of April 30, 2012, the components of distributable earnings (deficits) on a tax basis were as follows (in thousands):
Emerging Markets |
International Equity |
|||||||
Cost basis of investments for federal income tax purposes |
$ | 140,081 | $ | 1,400,110 | ||||
Unrealized appreciation |
14,062 | 185,618 | ||||||
Unrealized depreciation |
(21,174 | ) | (105,634 | ) | ||||
|
|
|
|
|||||
Net unrealized appreciation or (depreciation) |
(7,112 | ) | 79,984 | |||||
Undistributed ordinary income |
- | 18,095 | ||||||
Undistributed long-term gain or (loss) |
(1,475 | ) | (218,222 | ) | ||||
Other temporary differences |
(113 | ) | 1,835 | |||||
|
|
|
|
|||||
Distributable earnings or (deficits) |
$ | (8,700 | ) | $ | (118,308 | ) | ||
|
|
|
|
32
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
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 or (depreciation) are attributable primarily to the tax deferral of losses from wash sales, the realization for tax purposes of unrealized gain or (loss) on certain derivative instruments, the realization for tax purposes of unrealized gain or (loss) 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 or (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, 2012 (in thousands):
Emerging Markets |
International Equity | |||||||||
Paid-in-capital |
$ (20) | $ 111 | ||||||||
Undistributed net investment income |
(13 | ) | (268 | ) | ||||||
Accumulated net realized gain (loss) |
32 | 157 | ||||||||
Unrealized appreciation or (depreciation) of investments, futures contracts and foreign currency |
1 | - |
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the RIC MOD) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. One of the more prominent changes addresses capital loss carryforwards. Under the RIC MOD, each Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.
Finally, the RIC MOD contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions. Except for the simplification provisions related to RIC qualification, the RIC MOD is effective for taxable years beginning after December 22, 2010. The provisions related to RIC qualification are effective for taxable years for which the extended due date of the tax return is after December 22, 2010.
The International Equity Funds capital losses that will be carried forward under the provisions of RIC MOD for the six months ended April 30, 2012 are as follows (in thousands):
Loss Carryforward Character |
Total | |||
Short-Term |
$ | 27,603 | ||
Long-Term |
48,653 | |||
|
|
|||
Total |
$ | 76,256 | ||
|
|
As of April 30, 2012, the capital loss carryforward position of the Fund prior to the provisions of RIC MOD that may be applied against any realized net taxable gains in each succeeding year or until the expiration date, whichever occurs first, is $143,145 expiring in 2017.
33
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
7. 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, 2012 were (in thousands):
Emerging Markets |
International Equity |
|||||||
Purchases |
$27,330 | $588,350 | ||||||
Sales and maturities |
$32,295 | $540,156 |
A summary of the Funds direct transactions in the Select Funds for the six months ended April 30, 2012 is set forth below (in thousands):
Affiliated Fund | October 31, 2011 Shares/Fair Value |
Purchases | Sales | April 30, 2012 Shares/Fair Value | |||||||||||||||||||||
International Equity-Direct |
USG Select Fund | $ | 10,000 | $ | 17,540 | $ | 17,540 | $ | 10,000 | ||||||||||||||||
International Equity- Securities Lending |
USG Select Fund | 3,078 | 320,400 | 228,911 | 94,567 |
8. 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, 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 purchased with cash collateral proceeds are listed in the Funds Schedule of Investments and the collateral is shown on the Statements of Assets and Liabilities as a payable.
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 retained 78%, 12% and 10%, respectively, of the income generated from securities lending.
While securities are on loan, the Fund continues to receive certain income associated with that security and any gain or loss in the market price that may occur during the term of the loan. In the case of domestic equities, the value of any dividend is received in the form of a substitute payment approximately equal to the dividend. In the case of foreign securities, a negotiated amount is received that is less than the actual dividend, but higher than the dividend amount minus the foreign tax that the Fund would be subject to on the dividend.
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
34
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
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.
At April 30, 2012, 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 | ||
$ 99,069 |
$ - | $ 104,115 |
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.
9. Capital Share Transactions
The tables below summarize the activity in capital shares for each Class of the Fund (dollars and shares in thousands):
For the Six Months ended April 30, 2012
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||||||||||||||||||
Emerging Markets Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||
Shares sold |
10 | $ | 109 | 31 | $ | 356 | 82 | $ | 939 | |||||||||||||||||||||||||||||||
Reinvestment of dividends |
97 | 1,005 | 60 | 626 | 102 | 1,034 | ||||||||||||||||||||||||||||||||||
Shares redeemed |
(51) | (583 | )* | (414 | ) | (4,783 | )* | (87 | ) | (974 | )* | |||||||||||||||||||||||||||||
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Net increase (decrease) in shares outstanding |
56 | $ | 531 | (323 | ) | $ | (3,801 | ) | 97 | $ | 999 | |||||||||||||||||||||||||||||
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AMR Class |
A Class |
C Class |
||||||||||||||||||||||||||||||||||||||
Emerging Markets Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||
Shares sold |
2,336 | $ | 27,542 | 19 | $ | 215 | - | $ | 1 | |||||||||||||||||||||||||||||||
Reinvestment of dividends |
1,304 | 13,548 | 4 | 40 | - | 1 | ||||||||||||||||||||||||||||||||||
Shares redeemed |
(2,569 | ) | (30,036 | )* | (3 | ) | (43 | )* | - | - | * | |||||||||||||||||||||||||||||
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Net increase in shares outstanding |
1,071 | $ | 11,054 | 20 | $ | 212 | - | $ | 2 | |||||||||||||||||||||||||||||||
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Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||||||||||
International Equity Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares |
Amount | ||||||||||||||||||||||||||||||||
Shares sold |
5,588 | $ | 82,949 | 29 | $ | 440 | 5,674 | $ | 84,615 | 7 | $ | 110 | ||||||||||||||||||||||||||||
Reinvestment of dividends |
1,161 | 16,128 | 2 | 32 | 886 | 12,231 | 2 | 28 | ||||||||||||||||||||||||||||||||
Shares redeemed |
(3,898 | ) | (58,075 | )* | (6 | ) | (92 | )* | (3,748 | ) | (54,989 | )* | (9 | ) | (139 | )* | ||||||||||||||||||||||||
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Net increase (decrease) in shares outstanding |
2,851 | $ | 41,002 | 25 | $ | 380 | 2,812 | $ | 41,857 | - | $ | (1 | ) | |||||||||||||||||||||||||||
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Retirement Class | AMR Class | A Class | C Class | |||||||||||||||||||||||||||||||||||||
International Equity Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares |
Amount | ||||||||||||||||||||||||||||||||
Shares sold |
- | $ | 5 | 3,110 | $ | 46,676 | 15 | $ | 230 | 2 | $ | 30 | ||||||||||||||||||||||||||||
Reinvestment of dividends |
- | - | 1,043 | 14,493 | 1 | 7 | - | 3 | ||||||||||||||||||||||||||||||||
Shares redeemed |
- | - | * | (3,325 | ) | (50,402 | )* | (10 | ) | (143 | )* | - | (1 | )* | ||||||||||||||||||||||||||
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Net increase in shares outstanding |
- | $ | 5 | 828 | $ | 10,767 | 6 | $ | 94 | 2 | $ | 32 | ||||||||||||||||||||||||||||
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35
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
For the Year Ended October 31, 2011
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||||||||||||||||||
Emerging Markets Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||
Shares sold |
234 | $ | 3,361 | 447 | $ | 6,562 | 178 | $ | 2,540 | |||||||||||||||||||||||||||||||
Reinvestment of dividends |
6 | 84 | - | - | 3 | 41 | ||||||||||||||||||||||||||||||||||
Shares redeemed |
(187 | ) | (2,712 | )* | (33 | ) | (458 | )* | (329 | ) | (4,588 | )* | ||||||||||||||||||||||||||||
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Net increase (decrease) in shares outstanding |
53 | $ | 733 | 414 | $ | 6,104 | (148 | ) | $ | (2,007 | ) | |||||||||||||||||||||||||||||
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AMR Class |
A Class |
C Class |
||||||||||||||||||||||||||||||||||||||
Emerging Markets Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||
Shares sold |
2,808 | $ | 38,701 | 36 | $ | 498 | 1 | $ | 9 | |||||||||||||||||||||||||||||||
Reinvestment of dividends |
63 | 942 | - | - | - | - | ||||||||||||||||||||||||||||||||||
Shares redeemed |
(2,747 | ) | (39,516 | )* | (1 | ) | (11 | )* | - | - | * | |||||||||||||||||||||||||||||
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Net increase in shares outstanding |
124 | $ | 127 | 35 | $ | 487 | 1 | $ | 9 | |||||||||||||||||||||||||||||||
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Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||||||||||
International Equity Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares |
Amount | ||||||||||||||||||||||||||||||||
Shares sold |
8,441 | $ | 139,313 | 32 | $ | 548 | 5,946 | $ | 98,128 | 84 | $ | 1,395 | ||||||||||||||||||||||||||||
Reinvestment of dividends |
732 | 11,984 | - | 7 | 529 | 8,593 | 1 | 13 | ||||||||||||||||||||||||||||||||
Shares redeemed |
(7,305 | ) | (122,646 | )* | (1 | ) | (21 | )* | (9,134 | ) | (152,000 | )* | (64 | ) | (1,074 | )* | ||||||||||||||||||||||||
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Net increase (decrease) in shares outstanding |
1,868 | $ | 28,651 | 31 | $ | 534 | (2,659 | ) | $ | (45,279 | ) | 21 | $ | 334 | ||||||||||||||||||||||||||
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Retirement Class | AMR Class | A Class | C Class | |||||||||||||||||||||||||||||||||||||
International Equity Fund | Shares | Amount | Shares | Amount | Shares | Amount | Shares |
Amount | ||||||||||||||||||||||||||||||||
Shares sold |
- | $ | - | 3,041 | $ | 46,659 | 32 | $ | 536 | 5 | $ | 85 | ||||||||||||||||||||||||||||
Reinvestment of dividends |
- | - | 917 | 15,007 | - | - | - | - | ||||||||||||||||||||||||||||||||
Shares redeemed |
- | - | (6,578 | ) | (110,019 | )* | (2 | ) | (28 | )* | - | - | * | |||||||||||||||||||||||||||
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Net increase (decrease) in shares outstanding |
- | $ | - | (2,620 | ) | $ | (48,353 | ) | 30 | $ | 508 | 5 | $ | 85 | ||||||||||||||||||||||||||
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* | Net of Redemption Fees |
36
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37
American Beacon Emerging Markets FundSM
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | |||||||||||||||||||||||||||||||
Six Months Ended April 30, |
Six Months April 30, |
Year Ended October 31, |
||||||||||||||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||||||||||||||||
2012 | 2011G | 2010 | 2009 | 2008 | 2007 | 2012 | 2011G | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 12.67 | $ | 14.55 | $ | 11.95 | $ | 9.00 | $ | 24.20 | $ | 17.42 | $ | 12.75 | $ | 14.53 | ||||||||||||||||
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Income from investment operations: |
||||||||||||||||||||||||||||||||
Net investment income (loss) |
0.02 | 0.16 | 0.13 | 0.05 | 0.23 | 0.26 | 0.03 | 0.13 | ||||||||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
0.28 | (1.91) | 2.63 | 4.42 | (11.78) | 9.11 | 0.26 | (1.91) | ||||||||||||||||||||||||
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Total income (loss) from investment operations |
0.30 | (1.75) | 2.76 | 4.47 | (11.55) | 9.37 | 0.29 | (1.78) | ||||||||||||||||||||||||
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Less distributions: |
||||||||||||||||||||||||||||||||
Dividends from net investment income |
(0.16) | (0.13) | (0.16) | (0.21) | (0.10) | (0.10) | (0.15) | - | ||||||||||||||||||||||||
Distributions from net realized gains on securities |
(1.41) | - | - | (1.31) | (3.55) | (2.49) | (1.41) | - | ||||||||||||||||||||||||
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Total distributions |
(1.57) | (0.13) | (0.16) | (1.52) | (3.65) | (2.59) | (1.56) | - | ||||||||||||||||||||||||
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Redemption fees added to beneficial interests |
0.00A | 0.00A | 0.00A | - | - | - | 0.00A | 0.00A | ||||||||||||||||||||||||
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Net asset value, end of period |
$ | 11.40 | $ | 12.67 | $ | 14.55 | $ | 11.95 | $ | 9.00 | $ | 24.20 | $ | 11.48 | $ | 12.75 | ||||||||||||||||
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Total return B,C |
3.69%D | (12.18)% | 23.36% | 60.56% | (55.59)% | 60.83% | 3.54%D | (12.25)% | ||||||||||||||||||||||||
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Ratios and supplemental data: |
||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$8,317 | $8,523 | $9,023 | $9,494 | $5,478 | $13,773 | $1,065 | $5,296 | ||||||||||||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||||||||||
Expenses, before reimbursements |
1.59% | 1.55% | 1.58% | 1.66% | 1.38% | 1.60% | 1.74% | 1.68% | ||||||||||||||||||||||||
Expenses, net of reimbursements |
1.34% | 1.24% | 1.39% | 1.66% | 1.38% | 1.60% | 1.44% | 1.33% | ||||||||||||||||||||||||
Net investment income (loss), before reimbursements |
(0.02)% | 0.99% | 0.58% | 0.95% | 1.35% | 0.93% | (0.53)% | 0.99% | ||||||||||||||||||||||||
Net investment income (loss), net of reimbursements |
0.24% | 1.30% | 0.77% | 0.95% | 1.35% | 0.93% | (0.23)% | 1.35% | ||||||||||||||||||||||||
Portfolio turnover rate |
21%D | 101% | 64% | 70% | 82% | 81% | 21%D | 101% |
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 | Brandes Investment Partners, LP was added as an investment manager to the Emerging Markets Fund on December 31, 2010. |
38
American Beacon Emerging Markets FundSM
Financial Highlights
(For a share outstanding throughout the period)
|
Investor Class | A Class | C Class | |||||||||||||||||||||||||||||||||||||||||||||||
March 1 to October 31, |
Six Months |
Six Months |
Year ber 31, |
May 17 to Octo- ber 31, |
Six Months |
Year ber 31, |
Septem- ber 1 to ber 31, |
|||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | 2012 | 2011G | 2010 | 2009 | 2008 | 2007 | 2012 | 2011G | 2010 | 2012 | 2011G | 2010 | ||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||
$ | 12.29 | $ | 12.44 | $ | 14.29 | $ | 11.77 | $ | 8.85 | $ | 23.91 | $ | 17.22 | $ | 12.47 | $ | 14.27 | $ | 12.10 | $ | 12.38 | $ | 14.26 | $ | 12.89 | |||||||||||||||||||||||||
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0.04 | 0.00 | 0.13 | 0.04 | 0.04 | 0.17 | 0.11 | 0.02 | 0.06 | 0.02 | (0.06) | 0.09 | (0.02) | ||||||||||||||||||||||||||||||||||||||
2.20 | 0.29 | (1.93) | 2.63 | 4.35 | (11.60) | 9.11 | 0.27 | (1.85) | 2.15 | 0.30 | (1.97) | 1.39 | ||||||||||||||||||||||||||||||||||||||
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2.24 | 0.29 | (1.80) | 2.67 | 4.39 | (11.43) | 9.22 | 0.29 | (1.79) | 2.17 | 0.24 | (1.88) | 1.37 | ||||||||||||||||||||||||||||||||||||||
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- | (0.10) | (0.05) | (0.15) | (0.16) | (0.08) | (0.04) | (0.14) | (0.01) | - | (0.02) | - | - | ||||||||||||||||||||||||||||||||||||||
- | (1.41) | - | - | (1.31) | (3.55) | (2.49) | (1.41) | - | - | (1.41) | - | - | ||||||||||||||||||||||||||||||||||||||
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- | (1.51) | (0.05) | (0.15) | (1.47) | (3.63) | (2 .53) | (1 .55) | (0.01) | - | (1.43) | - | - | ||||||||||||||||||||||||||||||||||||||
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0.00A | 0.00A | 0.00A | 0.00A | - | - | - | 0.00A | 0.00A | 0.00A | 0.00A | 0.00A | 0.00A | ||||||||||||||||||||||||||||||||||||||
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$14.53 | $ | 11.22 | $ | 12.44 | $ | 14.29 | $ | 11.77 | $ | 8.85 | $ | 23.91 | $ | 11.21 | $ | 12.47 | $ | 14.27 | $ | 11.19 | $ | 12.38 | $ | 14.26 | ||||||||||||||||||||||||||
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18.23%D | 3.55%D | (12.65)% | 22.85% | 60.24% | (55.75)% | 60.38% | 3.56%D | (12.58)% | 17.93%D | 3.12%D | (13.18)% | 10.63%D | ||||||||||||||||||||||||||||||||||||||
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$ | 13 | $9,234 | $9,030 | $12,478 | $10,208 | $5,183 | $11,694 | $608 | $433 | $2 | $10 | $8 | $1 | |||||||||||||||||||||||||||||||||||||
1.82%E | 1.90% | 1.84% | 1.86% | 1.96% | 1.72% | 1.96% | 2.10% | 2.97% | 2.26%E | 3.40% | 26.96% | 4.49%E | ||||||||||||||||||||||||||||||||||||||
1.42%E | 1.76% | 1.70% | 1.77% | 1.96% | 1.72% | 1.96% | 1.78% | 1.46% | 1.78%E | 2.55% | 2.41% | 2.54%E | ||||||||||||||||||||||||||||||||||||||
0.40%E | (0.32)% | 0.77% | 0.29% | 0.65% | 1.00% | 0.65% | (0.46)% | (0.10)% | (0.10)%E | (1.81)% | (23.86)% | (2.91)%E | ||||||||||||||||||||||||||||||||||||||
0.79%E | (0.18)% | 0.91% | 0.37% | 0.65% | 1.00% | 0.65% | (0.14)% | 1.41% | 0.39%E | (0.96)% | 0.69% | (0.96)%E | ||||||||||||||||||||||||||||||||||||||
64%F | 21% | D | 101% | 64% | 70% | 82% | 81% | 21% | D | 101% | 64%F | 21%D | 101% | 64%F |
39
American Beacon Emerging Markets FundSM
Financial Highlights
(For a share outstanding throughout the period)
AMR Class | ||||||||||||||||||||||||
Six Months Ended April 30, 2012 |
Year Ended October 31, | |||||||||||||||||||||||
2011G | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 12.74 | $ | 14.62 | $ | 12.02 | $ | 9.06 | $ | 24.37 | $ | 17.52 | ||||||||||||
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Income from investment operations: |
||||||||||||||||||||||||
Net investment income (loss) |
0.01 | 0.18 | 0.11 | 0.09 | 0.33 | 0.19 | ||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
0.31 | (1.97 | ) | 2.68 | 4.43 | (11.91 | ) | 9.30 | ||||||||||||||||
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Total income (loss) from investment operations |
0.32 | (1.79 | ) | 2.79 | 4.52 | (11.58 | ) | 9.49 | ||||||||||||||||
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Less distributions: |
||||||||||||||||||||||||
Dividends from net investment income |
(0.15 | ) | (0.09 | ) | (0.19 | ) | (0.25 | ) | (0.18 | ) | (0.15 | ) | ||||||||||||
Distributions from net realized gains on securities |
(1.41 | ) | - | - | (1.31 | ) | (3.55 | ) | (2.49 | ) | ||||||||||||||
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Total distributions |
(1.56 | ) | (0.09 | ) | (0.19 | ) | (1 .56 | ) | (3.73 | ) | (2.64 | ) | ||||||||||||
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Redemption fees added to beneficial interests |
0.00 | A | 0.00 | A | 0.00 | A | - | - | - | |||||||||||||||
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Net asset value, end of period |
$ | 11.50 | $ | 12.74 | $ | 14.62 | $ | 12.02 | $ | 9.06 | $ | 24.37 | ||||||||||||
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Total return B,C |
3.80 | %D | (12.30 | )% | 23.47 | % | 61 .01 | % | (55.48 | )% | 61 .28 | % | ||||||||||||
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Ratios and supplemental data: |
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Net assets, end of period (in thousands) |
$ | 115,078 | $ | 113,894 | $ | 128,841 | $ | 109,985 | $ | 72,516 | $ | 271,726 | ||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||
Expenses, before reimbursements |
1.33 | % | 1.31 | % | 1.34 | % | 1.42 | % | 1.17 | % | 1.37 | % | ||||||||||||
Expenses, net of reimbursements |
1.33 | % | 1.31 | % | 1.34 | % | 1.42 | % | 1.17 | % | 1.37 | % | ||||||||||||
Net investment income (loss), before reimbursements |
0.25 | % | 1.29 | % | 0.79 | % | 1.27 | % | 1.46 | % | 1.25 | % | ||||||||||||
Net investment income (loss), net of reimbursements |
0.25 | % | 1.29 | % | 0.79 | % | 1.27 | % | 1.46 | % | 1.25 | % | ||||||||||||
Portfolio turnover rate |
21 | %D | 101 | % | 64 | % | 70 | % | 82 | % | 81 | % |
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 | Brandes Investment Partners, LP was added as an investment manager to the Emerging Markets Fund on December 31, 2010. |
40
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41
American Beacon International Equity FundSM
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | |||||||||||||||||||||||||||
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Six Months Ended April 30, 2012 |
Year Ended October 31, |
Six Months Ended April 30, 2012 |
||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 15.27 | $ | 16.67 | $ | 15.51 | $ | 13.13 | $ | 27.32 | $ | 24.68 | $ | 15.82 | ||||||||||||||
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Income from investment operations: |
||||||||||||||||||||||||||||
Net investment income |
0.21 | 0.46 | 0.35 | 0.54 | 0.77 | 0.65 | 0.20 | |||||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
0.36 | (1.41) | 1.30 | 2.78 | (11.60) | 4.31 | 0.38 | |||||||||||||||||||||
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Total income (loss) from investment operations |
0.57 | (0.95) | 1.65 | 3.32 | (10.83) | 4.96 | 0.58 | |||||||||||||||||||||
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Less distributions: |
||||||||||||||||||||||||||||
Dividends from net investment income |
(0.55) | (0.45) | (0.49) | (0.61) | (0.70) | (0.50) | (0.53) | |||||||||||||||||||||
Distributions from net realized gains on securities |
- | - | - | (0.33) | (2.66) | (1.82) | - | |||||||||||||||||||||
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Total distributions |
(0.55) | (0.45) | (0.49) | (0.94) | (3.36) | (2.32) | (0.53) | |||||||||||||||||||||
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Redemption fees added to beneficial interest |
- | - | - | 0.00G | 0.00G | 0.00G | - | |||||||||||||||||||||
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Net asset value, end of period |
$ | 15.29 | $ | 15.27 | $ | 16.67 | $ | 15.51 | $ | 13.13 | $ | 27.32 | $ | 15.87 | ||||||||||||||
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Total return A,B |
4.08% | c | (5.89)% | 10.81% | 27.44% | (44.81)% | 21.54% | 4.03%c | ||||||||||||||||||||
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Ratios and supplemental data: |
||||||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 556,218 | $ | 512,093 | $ | 527,718 | $ | 489,837 | $ | 567,414 | $ | 1,686,668 | $ | 1,119 | ||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||||||
Expenses, before reimbursements |
0.73% | 0.70% | 0.71% | 0.73% | 0.66% | 0.67% | 0.82% | |||||||||||||||||||||
Expenses, net of reimbursements |
0.73% | 0.70% | 0.71% | 0.73% | 0.66% | 0.67% | 0.82% | |||||||||||||||||||||
Net investment income (loss), before reimbursements |
2.83% | 2.90% | 2.21% | 2.76% | 2.91% | 2.46% | 2.87% | |||||||||||||||||||||
Net investment income, net of reimbursements |
2.83% | 2.90% | 2.21% | 2.76% | 2.91% | 2.46% | 2.87% | |||||||||||||||||||||
Portfolio turnover rate |
44%c | 33% | 38% | 41% | 31% | 38% | 44%c |
A 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.
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 Amounts represent less than $0.01 per share.
42
American Beacon International Equity FundSM
Financial Highlights
(For a share outstanding throughout the period)
|
Investor Class | |||||||||||||||||||||||||||||||||
Year Ended Octoter 31, |
August 3 to October 31, 2009 |
Six Months Ended April 30, 2012 |
Year Ended October 31, |
|||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||
$ | 17.17 | $ | 15.52 | $ | 14.89 | $ | 15.11 | $ | 16.42 | $ | 15.30 | $ | 12.95 | $ | 26.99 | $ | 24.42 | |||||||||||||||||
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0.49 | 0.04 | 0.04 | 0.19 | 0.44 | 0.29 | 0.37 | 0.66 | 0.58 | ||||||||||||||||||||||||||
(1.50) | 1.61 | 0.59 | 0.34 | (1.44) | 1.27 | 2.87 | (11.41) | 4.26 | ||||||||||||||||||||||||||
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(1.01) | 1.65 | 0.63 | 0.53 | (1.00) | 1.56 | 3.24 | (10.75) | 4.84 | ||||||||||||||||||||||||||
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(0.34) | - | - | (0.48) | (0.31) | (0.44) | (0.56) | (0.63) | (0.45) | ||||||||||||||||||||||||||
- | - | - | - | - | - | (0.33) | (2 .66) | (1 .82) | ||||||||||||||||||||||||||
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(0.34) | - | - | (0.48) | (0.31) | (0.44) | (0.89) | (3.29) | (2.27) | ||||||||||||||||||||||||||
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- | - | 0.00G | - | - | - | 0.00G | 0.00G | 0.00G | ||||||||||||||||||||||||||
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$ | 15.82 | $ | 17.17 | $ | 15.52 | $ | 15.16 | $ | 15.11 | $ | 16.42 | $ | 15.30 | $ | 12.95 | $ | 26.99 | |||||||||||||||||
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(6.00)% | 10.63% | 4.23%c | 3.84%c | (6.21)% | 10.36% | 27.08% | (44.96)% | 21.22% | ||||||||||||||||||||||||||
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$ | 720 | $ | 245 | $ | 1 | $ | 430,547 | $ | 386,560 | $ | 463,704 | $ | 445,596 | $ | 426,473 | $ | 909,385 | |||||||||||||||||
0.81% | 0.81% | 0.69% | D | 1.10% | 1.07% | 1.07% | 1.05% | 0.92% | 0.93% | |||||||||||||||||||||||||
0.81% | 0.81% | 0.69% | D | 1.10% | 1.07% | 1.07% | 1.05% | 0.92% | 0.93% | |||||||||||||||||||||||||
3.00% | 1.44% | 1.00% | D | 2.47% | 2.55% | 1.83% | 2.45% | 2.82% | 2.26% | |||||||||||||||||||||||||
3.00% | 1.44% | 1.00% | D | 2.47% | 2.55% | 1.83% | 2.45% | 2.82% | 2.26% | |||||||||||||||||||||||||
33% | 38% | 41% | E | 44 %c | 33% | 38% | 41% | 31% | 38% |
43
American Beacon International Equity FundSM
Financial Highlights
(For a share outstanding throughout the period)
Advisor Class | Retirement Class | |||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2012 |
Year Ended October 31, | Six Months Ended April 30, 2012 |
Year Ended October 31, |
|
May1 to October 31, 2009 |
|||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 15.52 | $ | 16.74 | $ | 15.20 | $ | 12.86 | $ | 26.83 | $ | 24.24 | $ | 15.44 | $ | 16.71 | $ | 15.20 | $ | 11.78 | ||||||||||||||||||||
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Income from investment operations: |
||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
0.16 | 0.07 | 0.89 | 0.31 | 0.62 | 0.56 | (0.26) | 0.39 | 0.22 | 0.12 | ||||||||||||||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
0.38 | (1.12) | 0.65 | 2.86 | (11.35) | 4.20 | 0.83 | (1.44) | 1.29 | 3.30 | ||||||||||||||||||||||||||||||
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Total income (loss) from investment operations |
0.54 | (1.05) | 1.54 | 3.17 | (10.73) | 4.76 | 0.57 | (1.05) | 1.51 | 3.42 | ||||||||||||||||||||||||||||||
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Less distributions: |
||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income |
(0.43) | (0.17) | - | (0.50) | (0.58) | (0.35) | - | (0.22) | - | - | ||||||||||||||||||||||||||||||
Distributions from net realized gains on securities |
- | - | - | (0.33) | (2 .66) | (1.82) | - | - | - | - | ||||||||||||||||||||||||||||||
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Total distributions |
(0.43) | (0.17) | - | (0.83) | (3.24) | (2.17) | - | (0.22) | - | - | ||||||||||||||||||||||||||||||
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Redemption fees added to beneficial interest |
- | - | - | 0.00 | G | 0.00 | G | 0.00 | G | - | - | - | 0.00G | |||||||||||||||||||||||||||
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Net asset value, end of period |
$ | 15.63 | $ | 15.52 | $ | 16.74 | $ | 15.20 | $ | 12.86 | $ | 26.83 | $ | 16.01 | $ | 15.44 | $ | 16.71 | $ | 15.20 | ||||||||||||||||||||
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Total return A,B |
3.74% | c | (6.35)% | 10.13% | 26.58% | (45.10)% | 21.00% | 3.69% | c | (6.37)% | 9.93% | 29.03%c | ||||||||||||||||||||||||||||
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Ratios and supplemental data: |
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Net assets, end of period (in thousands) |
$ | 1,024 | $ | 1,015 | $ | 746 | $ | 1,722 | $ | 1,546 | $ | 4,932 | $ | 7 | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||||||||||||||||||
Expenses, before reimbursements |
1.29% | 1.24% | 1.26% | 1.45% | 1.19% | 1.15% | 3.39% | 3.43% | 1.66% | 1.48%D | ||||||||||||||||||||||||||||||
Expenses, net of reimbursements |
1.29% | 1.24% | 1.26% | 1.44% | 1.19% | 1.12% | 1.45% | 1.30% | 1.47% | 1.48%D | ||||||||||||||||||||||||||||||
Net investment income (loss), before reimbursements |
2.23% | 2.52% | 1.64% | 2.25% | 2.36% | 2.01% | 0.69% | 0.17% | 1.25% | 1.72%D | ||||||||||||||||||||||||||||||
Net investment income, net of reimbursements |
2.23% | 2.52% | 1.64% | 2.26% | 2.36% | 2.04% | 2.63% | 2.30% | 1.44% | 1.72%D | ||||||||||||||||||||||||||||||
Portfolio turnover rate |
44% | c | 33% | 38% | 41% | 31% | 38% | 44% | c | 33% | 38% | 41%E |
A | 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. |
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 | Amounts represent less than $0.01 per share. |
44
American Beacon International Equity FundsSM
Financial Highlights
(For a share outstanding throughout the period)
A Class |
C Class | AMR Class | ||||||||||||||||||||||||||||||||||||||||||||
Six Months April 30, |
May 17 to |
Six Months April 30, |
September 31, |
Six Months April 30, |
Year Ended Octoter 31, | |||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
$ | 15.33 | $ | 16.40 | $ | 14.14 | $ | 15.21 | $ | 16.39 | $ | 14.82 | $ | 15.31 | $ | 16.78 | $ | 15.61 | $ | 13.25 | $ | 27.54 | $ | 24.86 | |||||||||||||||||||||||
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0.32 | 0.12 | 0.03 | 0.27 | 0.07 | (0.01) | 0.25 | 0.53 | 0.39 | 0.37 | 0.72 | 0.73 | |||||||||||||||||||||||||||||||||||
0.21 | (1.14) | 2.23 | 0.19 | (1.25) | 1.58 | 0.33 | (1.44) | 1.30 | 2.99 | (11.58) | 4.33 | |||||||||||||||||||||||||||||||||||
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0.53 | (1.02) | 2.26 | 0.46 | (1.18) | 1.57 | 0.58 | (0.91) | 1.69 | 3.36 | (10.86) | 5.06 | |||||||||||||||||||||||||||||||||||
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(0.55) | (0.05) | - | (0.62) | - | - | (0.59) | (0.56) | (0.52) | (0.67) | (0.77) | (0.56) | |||||||||||||||||||||||||||||||||||
- | - | - | - | - | - | - | - | - | (0.33) | (2.66) | (1.82) | |||||||||||||||||||||||||||||||||||
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(0.55) | (0.05) | - | (0.62) | (0.59) | (0.56) | (0.52) | (1.00) | (3.43) | (2.38) | |||||||||||||||||||||||||||||||||||||
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- | - | - | - | - | - | - | - | - | 0.00G | 0.00G | 0.00G | |||||||||||||||||||||||||||||||||||
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$ | 15.31 | $ | 15.33 | $ | 16.40 | $ | 15.05 | $ | 15.21 | $ | 16.39 | $ | 15.30 | $ | 15.31 | $ | 16.78 | $ | 15.61 | $ | 13.25 | $ | 27.54 | |||||||||||||||||||||||
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3.81%c | (6.26)% | 15.98%c | 3.42%c | (7.09)% | 10.59%c | 4.16%c | (5.62)% | 11.05% | 27.70% | (44.65)% | 21.86% | |||||||||||||||||||||||||||||||||||
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$ | 551 | $ | 461 | $ | 4 | $ | 108 | $ | 76 | $ | 1 | $ | 400,690 | $ | 388,185 | $ | 469,414 | $ | 431,499 | $ | 328,083 | $ | 672,680 | |||||||||||||||||||||||
1.26% | 2.24% | 1.26%D | 2.09% | 7.39% | 2.60%D | 0.47% | 0.45% | 0.46% | 0.48% | 0.41% | 0.42% | |||||||||||||||||||||||||||||||||||
1.26% | 1.22% | 1.25%D | 1.98% | 1.95% | 1.99%D | 0.47% | 0.45% | 0.46% | 0.48% | 0.41% | 0.42% | |||||||||||||||||||||||||||||||||||
2.43% | 1.03% | 0.96%D | 1.64% | (4.32)% | (0.81)%D | 3.06% | 3.15% | 2.45% | 3.00% | 3.24% | 2.77% | |||||||||||||||||||||||||||||||||||
2.43% | 2.05% | 0.98%D | 1.75% | 1.11% | (0.20)%D | 3.06% | 3.15% | 2.45% | 3.00% | 3.24% | 2.77% | |||||||||||||||||||||||||||||||||||
44 %c | 33% | 38%F | 44 %c | 33% | 38%F | 44 %c | 33% | 38% | 41% | 31% | 38% |
45
Delivery of Documents
eDelivery is NOW AVAILABLE- Stop traditional mail delivery and receive your
shareholder reports and summary prospectus on-line. Sign up at
www.americanbeaconfunds.com
If you invest in the Fund through a financial institution, you may be able to receive the Funds 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 institutions name or contact your financial institution directly.
To obtain more information about the Fund:
|
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![]() |
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By E-mail: american_beacon.funds@ambeacon.com |
On the Internet: Visit our website at www.americanbeaconfunds.com | |||
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By Telephone: Institutional, Y, Investor, Advisor and Retirement Classes Call (800) 658-5811 AMR ClassSM Call (800) 345-2345 |
By Mail: American Beacon Funds P.O. Box 219643 Kansas City, MO 64121-9643 | |||
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Availability of Quarterly Portfolio Schedules
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 Funds Forms N-Q are available on the SECs website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SECs Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-1520. Information regarding the operation of the SECs Public Reference Room may be obtained by calling (202) 551-8090. A complete schedule of each Funds portfolio holdings is also available on the Funds website (www.americanbeaconfunds.com) approximately twenty days after the end of each month. |
Availability of Proxy Voting Policy and Records
A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Funds Statement of Additional Information, is available free of charge on the Funds website (www.americanbeaconfunds.com) and by calling 1-800-967-9009 or by accessing the SECs website at www.sec.gov. The Funds proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Funds Forms N-PX are available on the SECs website at www.sec.gov. The Funds proxy voting record may also be obtained by calling 1-800-967-9009. |
Fund Service Providers:
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 04/12
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. |
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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 |
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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 small and 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 advisors strategies and each Funds 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, 2012 |
![]() |
Dear Shareholders,
The market volatility that characterized so much of 2011 continued through November and December but eased in the first months of 2012. Among other things, positive economic data in the U.S. and action in Europe to address Greeces debt helped reassure investors and the broad market through April.
Nonetheless, the last six months have highlighted the potential benefits to long-term investors of owning funds that are able to participate in the markets upward movement, while seeking to protect value when the markets turn down. |
For the six-month period ended April 30, 2012:
- American Beacon Balanced Fund (Institutional Class) returned 9.94%.
- American Beacon Large Cap Growth Fund (Institutional Class) returned 11.95%.
- American Beacon Mid-Cap Value Fund (Institutional Class) returned 13.44%.
- American Beacon Small Cap Value II Fund (Y Class) returned 9.10% from its inception on Nov. 15, 2011, through April 30, 2012.
With continued uncertainty in the European Union and an upcoming Presidential election, we may again see further market gyrations in the months to come. Regardless of headlines, American Beacon remains focused on seeking opportunities and meeting market challenges to deliver the type of consistency in performance and service that our shareholders value.
Thank you for your continued investment in the American Beacon Funds. For additional information about the Funds 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
Domestic Equity Market Overview
April 30, 2012 (Unaudited)
2
American Beacon Balanced FundSM
Performance Overview
April 30, 2012 (Unaudited)
3
American Beacon Balanced FundSM
Performance Overview
April 30, 2012 (Unaudited)
4
American Beacon Large Cap Growth FundSM
Performance Overview
April 30, 2012 (Unaudited)
5
American Beacon Large Cap Growth FundSM
Performance Overview
April 30, 2012 (Unaudited)
This page intentionally left blank.
6
American Beacon Mid-Cap Value FundSM
Performance Overview
April 30, 2012 (Unaudited)
7
American Beacon Mid-Cap Value FundSM
Performance Overview
April 30, 2012 (Unaudited)
8
American Beacon Small Cap Value II FundSM
Performance Overview
April 30, 2012 (Unaudited)
9
American Beacon FundsSM
Fund Expenses
April 30, 2012 (Unaudited)
Fund Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and 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, 2011 through April 30, 2012.
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.
Institutional Class | Balanced Fund |
Large Cap Growth Fund (Closed) |
Mid-Cap Value Fund |
|||||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 04/30/12 |
$ |
1,099 .45 |
|
$ |
1,119 .48 |
|
$ |
1,134 .40 |
| |||
Expenses Paid During Period 11/1/11-4/30/12 * |
$ | 2.98 | $ | 5.64 | $ | 5.15 | ||||||
Annualized Expense Ratio |
0.57 | % | 1.07 | % | 0.97 | % |
Y Class | Balanced Fund |
Large Cap Growth Fund (Closed) |
Mid-Cap Value Fund |
Small Cap Value II Fund** |
||||||||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 04/30/12 |
$ |
1,097 .88 |
|
$ | 1,114.95 | $ |
1,133 .24 |
|
$ |
1,090 .24 |
| |||||
Expenses Paid During Period 11/1/11-4/30/12 * |
$ | 4.75 | $ | 7.89 | $ | 6.52 | $ | 5.96 | ||||||||
Annualized Expense Ratio |
0.91 | % | 1.50 | % | 1.23 | % | 1.25 | % |
Investor Class | Balanced Fund |
Mid-Cap Value Fund |
Small Cap Value II Fund** |
|||||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 04/30/12 |
$ |
1,097 .88 |
|
$ |
1,133 .24 |
|
$ |
1,090 .24 |
| |||
Expenses Paid During Period 11/1/11-4/30/12 * |
$ | 4.75 | $ | 6.52 | $ | 5.96 | ||||||
Annualized Expense Ratio |
0.91 | % | 1.23 | % | 1.25 | % |
Advisor Class | Balanced Fund |
Mid-Cap Value Fund |
||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 04/30/12 |
$ |
1,096 .77 |
|
$ |
1,131 .20 |
| ||
Expenses Paid During Period 11/1/11-4/30/12 * |
$ | 5.63 | $ | 7.84 | ||||
Annualized Expense Ratio |
1.08 | % | 1.48 | % |
A Class | Balanced Fund |
Large Cap Growth Fund (Closed) |
Mid-Cap Value Fund |
|||||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 04/30/12 |
$ |
1,096 .95 |
|
$ |
1,115 .13 |
|
$ |
1,131 .45 |
| |||
Expenses Paid During Period 11/1/11-4/30/12 * |
$ | 5.63 | $ | 7.94 | $ | 7.84 | ||||||
Annualized Expense Ratio |
1.08 | % | 1.51 | % | 1.48 | % |
10
American Beacon FundsSM
Fund Expenses
April 30, 2012 (Unaudited)
C Class | Balanced Fund |
Large Cap Growth Fund (Closed) |
Mid-Cap Value Fund |
|||||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 04/30/12 |
$ | 1,092.59 | $ | 1,110.93 | $ | 1,127.49 | ||||||
Expenses Paid During Period 11/1/11-4/30/12 * |
$ | 9 .52 | $ | 11 .81 | $ | 11 .85 | ||||||
Annualized Expense Ratio |
1 .83 | % | 2 .25 | % | 2 .24 | % | ||||||
AMR Class | Balanced Fund |
Large Cap Growth Fund (Closed) |
Mid-Cap Value Fund |
|||||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 4/30/2012 |
$ | 1,100.95 | $ | 1,119.20 | $ | 1,135.04 | ||||||
Expenses Paid During Period 11/1/11-4/30/12 * |
$ | 1 .62 | $ | 3 .58 | $ | 3 .98 | ||||||
Annualized Expense Ratio |
0 .31 | % | 0 .68 | % | 0 .75 | % |
* | Expenses are equal to the Funds 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 (182) by days in the year (366) to reflect the half-year period. |
** | Expenses are equal to the Funds 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 (168) by days in the year (366) 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 Funds actual expense ratio and an assumed 5% per year rate of return before expenses (not the Funds 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 sales charges (loads) or 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.
Institutional Class | Balanced Fund |
Large Cap Growth Fund (Closed) |
Mid-Cap Value Fund |
|||||||||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value 04/30/12 |
$ | 1,022.03 | $ | 1,019.54 | $ | 1,020.04 | ||||||||||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 2 .87 | $ | 5 .37 | $ | 4 .87 | ||||||||||
Annualized Expense Ratio |
0 .57 | % | 1 .07 | % | 0 .97 | % | ||||||||||
Y Class | Balanced Fund |
Large Cap Growth Fund (Closed) |
Mid-Cap Value Fund |
Small Cap Value II Fund** |
||||||||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 04/30/12 |
$ | 1,020.34 | $ | 1,017.40 | $ | 1,018.75 | $ | 1,018.65 | ||||||||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 4 .57 | $ | 7 .52 | $ | 6 .17 | $ | 6 .27 | ||||||||
Annualized Expense Ratio |
0 .91 | % | 1 .50 | % | 1 .23 | % | 1 .25 | % | ||||||||
Investor Class | Balanced Fund |
Mid-Cap Value Fund |
Small Cap Value II Fund** |
|||||||||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 |
11
American Beacon FundsSM
Fund Expenses
April 30, 2012 (Unaudited)
Investor Class | Balanced Fund |
Mid-Cap Value Fund |
Small Cap Value II Fund** |
|||||||||
Ending Account Value 04/30/12 |
$ | 1,020 .34 | $ | 1,018 .75 | $ | 1,018 .65 | ||||||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 4 .57 | $ | 6 .17 | $ | 6 .27 | ||||||
Annualized Expense Ratio |
0 .91 | % | 1 .23 | % | 1 .25 | % |
Advisor Class | Balanced Fund |
Mid-Cap Value Fund |
||||||
Beginning Account Value 11/1/11 |
$ | 1,000 .00 | $ | 1,000 .00 | ||||
Ending Account Value 04/30/12 |
$ | 1,019 .49 | $ | 1,017 .50 | ||||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 5 .42 | $ | 7 .42 | ||||
Annualized Expense Ratio |
1 .08 | % | 1 .48 | % |
A Class | Balanced Fund |
Large Cap Growth Fund (Closed) |
Mid-Cap Value Fund |
|||||||||
Beginning Account Value 11/1/11 |
$ | 1,000 .00 | $ | 1,000 .00 | $ | 1,000 .00 | ||||||
Ending Account Value 04/30/12 |
$ | 1,019 .49 | $ | 1,017 .35 | $ | 1,017 .50 | ||||||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 5 .42 | $ | 7 .57 | $ | 7 .42 | ||||||
Annualized Expense Ratio |
1 .08 | % | 1 .51 | % | 1 .48 | % |
C Class | Balanced Fund |
Large Cap Growth Fund (Closed) |
Mid-Cap Value Fund |
|||||||||
Beginning Account Value 11/1/11 |
$ | 1,000 .00 | $ | 1,000 .00 | $ | 1,000 .00 | ||||||
Ending Account Value 04/30/12 |
$ | 1,015 .76 | $ | 1,013 .67 | $ | 1,013 .72 | ||||||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 9 .17 | $ | 11 .26 | $ | 11 .22 | ||||||
Annualized Expense Ratio |
1 .83 | % | 2 .25 | % | 2 .24 | % |
AMR Class | Balanced Fund |
Large Cap Growth Fund (Closed) |
Mid-Cap Value Fund |
|||||||||
Beginning Account Value 11/1/11 |
$ | 1,000 .00 | $ | 1,000 .00 | $ | 1,000 .00 | ||||||
Ending Account Value 04/30/12 |
$ | 1,023 .32 | $ | 1,021 .48 | $ | 1,021 .13 | ||||||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 1 .56 | $ | 3 .42 | $ | 3 .77 | ||||||
Annualized Expense Ratio |
0.31 | % | 0.68 | % | 0.75 | % |
* | Expenses are equal to the Funds 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 (182) by days in the year (366) to reflect the half year period. |
** | Expenses are equal to the Funds 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 (168) by days in the year (366) to reflect the half-year period. |
12
American Beacon Balanced FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
13 |
American Beacon Balanced FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
14 |
American Beacon Balanced FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
15 |
American Beacon Balanced FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
16 |
American Beacon Balanced FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
17 |
American Beacon Balanced FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
18 |
American Beacon Balanced FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
19 |
American Beacon Balanced FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
20 |
American Beacon Balanced FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Futures Contracts Open on April 30, 2012: |
Description | Type | Number of Contracts |
Expiration Date | Contract Value | Unrealized Appreciation (Depreciation) |
|||||||||
S&P 500 Mini E Index Future |
Long | 469 | June, 2012 | $ | 32,680 | $ | 332 | |||||||
|
|
|
|
|||||||||||
$ | 32,680 | $ | 332 | |||||||||||
|
|
|
|
See accompanying notes |
21 |
American Beacon Large Cap Growth FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Shares | Fair Value | |||||||||
(000s) |
||||||||||
SHORT-TERM INVESTMENTS - 94.63% (Cost $251,871) |
|
|||||||||
JPMorgan U.S. Government Money Market Fund |
251,871,012 | $251,871 | ||||||||
|
|
|||||||||
Total Short-Term Investments (Cost $251,871) |
||||||||||
TOTAL INVESTMENTS - 94.63% (Cost $251,871) |
|
251,871 | ||||||||
OTHER ASSETS, NET OF LIABILITIES - 5.37% |
|
14,301 | ||||||||
|
|
|||||||||
TOTAL NET ASSETS - 100.00% |
|
$266,172 | ||||||||
|
|
Percentages are stated as a percent of net assets.
Futures Contracts Open on April 30, 2012: |
Description | Type | Number of Contracts |
Expiration Date | Contract Value | Unrealized Appreciation (Depreciation) |
|||||||||
S&P 500 Mini E Index Future |
Long | 3,792 | June, 2012 | $ | 264,227 | $ | 5,514 | |||||||
|
|
|
|
|||||||||||
$ | 264,227 | $ | 5,514 | |||||||||||
|
|
|
|
See accompanying notes |
22 |
American Beacon Mid-Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
23 |
American Beacon Mid-Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
24 |
American Beacon Mid-Cap Value FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Shares | Fair Value | |||||||
(000s) | ||||||||
Multi-Utilities - 1.61% |
||||||||
SCANA Corp. |
21,791 | $1,005 | ||||||
Xcel Energy, Inc |
82,932 | 2,244 | ||||||
| ||||||||
3,249 | ||||||||
| ||||||||
Total Utilities |
13,151 | |||||||
| ||||||||
Total Common Stock (Cost $172,795) |
191,107 | |||||||
| ||||||||
SHORT-TERM INVESTMENTS - 4.59% (Cost $9,259) |
||||||||
JPMorgan U.S. Government Money Market Fund |
9,258,950 | 9,259 | ||||||
| ||||||||
TOTAL INVESTMENTS - 99.24% (Cost $182,054) |
|
200,366 | ||||||
OTHER ASSETS, NET OF LIABILITIES - 0.76% |
|
1,529 | ||||||
| ||||||||
TOTAL NET ASSETS - 100.00% |
$201,895 | |||||||
|
Percentages are stated as a percent of net assets.
A Non-income producing security.
B REIT - Real Estate Investment Trust.
C Limited Partnership.
Futures Contracts Open on April 30, 2012: |
Description | Type | Number of Contracts |
Expiration Date | Contract Value | Unrealized Appreciation (Depreciation) |
|||||||||
S&P 400 Midcap E Index Future |
Long | 87 | June, 2012 | $ | 8,610 | $ | 100 | |||||||
|
|
|
|
|||||||||||
$ | 8,610 | $ | 100 | |||||||||||
|
|
|
|
See accompanying notes |
25 |
American Beacon Small Cap Value II FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
26 |
American Beacon Small Cap Value II FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
27 |
American Beacon Small Cap Value II FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
28 |
American Beacon Small Cap Value II FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Futures Contracts Open on April 30, 2012: |
||||||||||||||||||||||
Description | Type | Number of Contracts |
Expiration Date | Contract Value | Unrealized Appreciation (Depreciation) |
|||||||||||||||||
Russell 2000 Mini Index Future |
Long | 1 | June, 2012 | $ | 81 | $ | 1 | |||||||||||||||
|
|
|
|
|||||||||||||||||||
$ | 81 | $ | 1 | |||||||||||||||||||
|
|
|
|
See accompanying notes |
29 |
American Beacon FundsSM
Statements of Assets and Liabilities
April 30, 2012 (in thousands except share and per share amounts) (Unaudited)
Balanced Fund |
Large Cap Growth Fund (Closed) |
Mid-Cap Value Fund |
Small Cap Value II Fund |
|||||||||||||
Assets: |
||||||||||||||||
Investments in unaffiliated securities, at fair value A |
$ | 874,861 | $ | 251,871 | $ | 200,366 | $ | 3,325 | ||||||||
Investments in affiliated securities, at fair value B |
5,000 | - | - | - | ||||||||||||
Deposit with brokers for futures contracts |
1,593 | 13,293 | 445 | 6 | ||||||||||||
Receivable for investments sold |
1,425 | - | 773 | 2 | ||||||||||||
Dividends and interest receivable |
2,710 | 27 | 95 | 3 | ||||||||||||
Receivable for fund shares sold |
70,642 | 2,231 | 916 | - | ||||||||||||
Receivable for tax reclaims |
33 | - | - | - | ||||||||||||
Receivable for expense reimbursement (Note 2) |
- | - | - | 11 | ||||||||||||
Prepaid expenses |
40 | 34 | 71 | 54 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
956,304 | 267,456 | 202,666 | 3,401 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Payable for investments purchased |
2,490 | - | 297 | 16 | ||||||||||||
Payable for fund shares redeemed |
341 | 143 | 199 | - | ||||||||||||
Payable for variation margin from open futures contracts |
108 | 931 | 69 | 1 | ||||||||||||
Management and investment advisory fees payable (Note 2) |
527 | 170 | 161 | 2 | ||||||||||||
Administrative service and service fees payable (Note 2) |
87 | 10 | 17 | 2 | ||||||||||||
Professional fees payable |
15 | 5 | 9 | 14 | ||||||||||||
Trustee fees payable |
12 | 1 | 1 | - | ||||||||||||
Prospectus and shareholder reports |
53 | 10 | 14 | - | ||||||||||||
Other liabilities |
19 | 14 | 4 | - | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
3,652 | 1,284 | 771 | 35 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets |
$ | 952,652 | $ | 266,172 | $ | 201,895 | $ | 3,366 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Analysis of Net Assets: |
||||||||||||||||
Paid-in-capital |
908,856 | 267,354 | 190,851 | 3,093 | ||||||||||||
Undistributed net investment income |
(912 | ) | - | 592 | 4 | |||||||||||
Accumulated net realized gain (loss) |
(28,744 | ) | (6,696 | ) | (7,960 | ) | 67 | |||||||||
Unrealized appreciation of investments and futures contracts |
73,452 | 5,514 | 18,412 | 202 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net assets |
$ | 952,652 | $ | 266,172 | $ | 201,895 | $ | 3,366 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares outstanding (no par value): |
||||||||||||||||
Institutional Class |
2,816,046 | 14,106 | 3,455,042 | N/A | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Y Class |
183,465 | 1,073 | 9,864 | 158,238 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Investor Class |
7,567,208 | N/A | 237,237 | 150,620 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Advisor Class |
301,168 | N/A | 4,989 | N/A | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
A Class |
190,168 | 18,442 | 25,853 | N/A | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
C Class |
114,263 | 193 | 4,033 | N/A | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
AMR Class |
60,515,765 | 38,591,643 | 14,808,706 | N/A | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net asset value, offering and redemption price per share: |
||||||||||||||||
Institutional Class |
$ | 14.00 | $ | 6.84 | $ | 10.89 | N/A | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Y Class |
$ | 14.04 | $ | 6.79 | $ | 10.87 | $ | 10.90 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Investor Class |
$ | 12.92 | N/A | $ | 10.93 | $ | 10.89 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Advisor Class |
$ | 13.43 | N/A | $ | 10.78 | N/A | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
AMR Class |
$ | 13.30 | $ | 6.89 | $ | 10.89 | N/A | |||||||||
|
|
|
|
|
|
|
|
|||||||||
A Class (offering price $13.73, $7.19, $11.44, and N/A respectively) |
$ | 12.94 | $ | 6.78 | $ | 10.79 | N/A | |||||||||
|
|
|
|
|
|
|
|
|||||||||
C Class |
$ | 13.15 | $ | 6.71 | $ | 10.70 | N/A | |||||||||
|
|
|
|
|
|
|
|
|||||||||
A Cost of investments in unaffiliated securities |
$ | 801,741 | $ | 251,871 | $ | 182,054 | $ | 3,124 | ||||||||
B Cost of investments in affiliated securities |
$ | 5,000 | $ | - | $ | - | $ | - |
See accompanying notes |
30 |
American Beacon FundsSM
Statements of Operations
For the Six Months ended April 30, 2012 (in thousands) (Unaudited)
Balanced Fund |
Large Cap Growth Fund (Closed) |
Mid-Cap Value Fund |
Small Cap Value II Fund |
|||||||||||||
Investment Income: |
||||||||||||||||
Dividend income from unaffiliated securities (net of foreign taxes) A |
$ | 7,702 | $ | 402 | $ | 1,520 | $ | 24 | ||||||||
Dividend income from affiliated securities |
2 | - | - | - | ||||||||||||
Interest income |
5,382 | 1 | - | - | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total investment income |
13,086 | 403 | 1,520 | 24 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Expenses: |
||||||||||||||||
Management and investment advisory fees (Note 2) |
939 | 358 | 412 | 9 | ||||||||||||
Administrative service fees (Note 2): |
||||||||||||||||
Institutional Class |
52 | - | 53 | - | ||||||||||||
Y Class |
2 | - | - | 2 | ||||||||||||
Investor Class |
131 | - | 4 | 2 | ||||||||||||
Advisor Class |
6 | - | - | - | ||||||||||||
A Class |
2 | - | - | - | ||||||||||||
C Class |
2 | - | - | - | ||||||||||||
AMR Class |
181 | 35 | 25 | - | ||||||||||||
Transfer agent fees: |
||||||||||||||||
Institutional Class |
1 | - | 1 | - | ||||||||||||
Y Class |
- | - | - | 2 | ||||||||||||
Investor Class |
8 | - | 1 | 2 | ||||||||||||
AMR Class |
(12 | ) | 1 | 1 | - | |||||||||||
Custody and fund accounting fees |
54 | 9 | 9 | - | ||||||||||||
Professional fees |
18 | 16 | 24 | 23 | ||||||||||||
Registration fees and expenses |
29 | 25 | 28 | 17 | ||||||||||||
Service fees (Note 2): |
||||||||||||||||
Y Class |
1 | - | - | 1 | ||||||||||||
Investor Class |
143 | - | 3 | 2 | ||||||||||||
Advisor Class |
5 | - | - | - | ||||||||||||
A Class |
1 | - | - | - | ||||||||||||
C Class |
1 | - | - | - | ||||||||||||
Distribution fees (Note 2): |
||||||||||||||||
Advisor Class |
5 | - | - | - | ||||||||||||
A Class |
1 | - | - | - | ||||||||||||
C Class |
5 | - | - | - | ||||||||||||
Prospectus and shareholder reports |
31 | 12 | 14 | 7 | ||||||||||||
Trustee fees |
29 | 5 | 3 | - | ||||||||||||
Other expenses |
30 | 15 | 8 | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
1,665 | 476 | 586 | 69 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (fees waived and expenses reimbursed) (Note 2) |
- | - | (12 | ) | (52 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net expenses |
1,665 | 476 | 574 | 17 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income |
11,421 | (73 | ) | 946 | 7 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Realized and unrealized gain (loss) from investments: |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments |
13,630 | 12,620 | 2,084 | 67 | ||||||||||||
Commission recapture (Note 3) |
19 | 1 | 31 | - | ||||||||||||
Futures contracts |
4,955 | (910 | ) | 2,229 | - | |||||||||||
Change in net unrealized appreciation or (depreciation) of: |
||||||||||||||||
Investments |
50,915 | (5,534 | ) | 10,904 | 202 | |||||||||||
Futures contracts |
(2,379 | ) | 5,475 | (146 | ) | - | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net gain from investments |
67,140 | 11,652 | 15,102 | 269 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase in net assets resulting from operations |
$ | 78,561 | $ | 11,579 | $ | 16,048 | $ | 276 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
A Foreign taxes |
$ | 54 | $ | - | $ | 4 | $ | - |
See accompanying notes |
31 |
American Beacon FundsSM
Statement of Changes in Net Assets (in thousands)
Balanced Fund | Large Cap Growth Fund (Closed) | |||||||||||||||
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
|||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income (loss) |
$ | 11,421 | $ | 22,963 | $ | (73) | $ | 197 | ||||||||
Net realized gain from investments and futures contracts |
18,604 | 49,507 | 11,711 | 6,088 | ||||||||||||
Change in net unrealized appreciation or (depreciation) of investments and futures contracts |
48,536 | (29,466) | (59) | (10,935) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in net assets resulting from operations |
78,561 | 43,004 | 11,579 | (4,650) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Distributions to Shareholders: |
||||||||||||||||
Net investment income: |
||||||||||||||||
Institutional Class |
(467) | (876) | - | - | ||||||||||||
Y Class |
(49) | (10) | - | - | ||||||||||||
Investor Class |
(1,276) | (1,759) | - | - | ||||||||||||
Advisor Class |
(38) | (104) | - | - | ||||||||||||
A Class |
(24) | (7) | - | - | ||||||||||||
C Class |
(11) | (4) | - | - | ||||||||||||
AMR Class |
(11,344) | (21,013) | (170) | (167) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net distributions to shareholders |
(13,209) | (23,773) | (170) | (167) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Capital Share Transactions: |
||||||||||||||||
Proceeds from sales of shares |
200,802 | 120,787 | 187,419 | 134,234 | ||||||||||||
Reinvestment of dividends and distributions |
13,158 | 23,696 | 170 | 167 | ||||||||||||
Cost of shares redeemed |
(181,653) | (181,269) | (18,916) | (140,627) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in net assets from capital share transactions |
32,307 | (36,786) | 168,673 | (6,227) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in net assets |
97,659 | (17,555) | 180,082 | (11,043) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets: |
||||||||||||||||
Beginning of period |
854,993 | 872,548 | 86,090 | 97,133 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
End of Period * |
$ | 952,652 | $ | 854,993 | $ | 266,172 | $ | 86,090 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
*Includes undistributed net investment income (loss) of |
$ | (912) | $ | (763) | $ | - | $ | 105 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes |
32 |
American Beacon FundsSM
Statement of Changes in Net Assets (in thousands)
Mid-Cap Value Fund | Small Cap Value II Fund |
|||||||||||
Six
Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
From November 15 to April 30, 2012 |
||||||||||
(unaudited) | (unaudited) | |||||||||||
Increase (Decrease) in Net Assets: |
||||||||||||
Operations: |
||||||||||||
Net investment income |
$ | 946 | $ | 1,307 | $ | 7 | ||||||
Net realized gain from investments and futures contracts |
4,344 | 8,346 | 67 | |||||||||
Change in net unrealized appreciation or (depreciation) of |
10,758 | (3,825) | 202 | |||||||||
|
|
|
|
|
|
|||||||
Net increase in net assets resulting from operations |
16,048 | 5,828 | 276 | |||||||||
|
|
|
|
|
|
|||||||
Distributions to Shareholders: |
||||||||||||
Net investment income: |
||||||||||||
Institutional Class |
(451) | (30) | - | |||||||||
Y Class |
(1) | - | (1) | |||||||||
Investor Class |
(14) | (343) | (2) | |||||||||
Advisor Class |
- | (1) | - | |||||||||
A Class |
(1) | - | - | |||||||||
AMR Class |
(788) | (753) | - | |||||||||
|
|
|
|
|
|
|||||||
Net distributions to shareholders |
(1,255) | (1,127) | (3) | |||||||||
|
|
|
|
|
|
|||||||
Capital Share Transactions: |
||||||||||||
Proceeds from sales of shares |
108,616 | 68,649 | 90 | |||||||||
Reinvestment of dividends and distributions |
1,252 | 1,127 | 3 | |||||||||
Cost of shares redeemed |
(15,251) | (84,216) | - | |||||||||
Redemption fees |
57 | 56 | - | |||||||||
|
|
|
|
|
|
|||||||
Net increase (decrease) in net assets from capital share transactions |
94,674 | (14,384) | 93 | |||||||||
|
|
|
|
|
|
|||||||
Net increase (decrease) in net assets |
109,467 | (9,683) | 366 | |||||||||
|
|
|
|
|
|
|||||||
Net Assets: |
||||||||||||
Beginning of period |
92,428 | 102,111 | 3,000 | |||||||||
|
|
|
|
|
|
|||||||
End of Period * |
$ | 201,895 | $ | 92,428 | $ | 3,366 | ||||||
|
|
|
|
|
|
|||||||
*Includes undistributed net investment income (loss) of |
$ | 592 | $ | 901 | $ | 4 | ||||||
|
|
|
|
|
|
See accompanying notes |
33 |
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
1. Organization and Significant Accounting Policies
American Beacon Funds (the Trust), which is comprise of 24 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, the American Beacon Mid-Cap Value Fund, and the American Beacon Small Cap Value II 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
November 15, 2011 is the inception date for all classes of the Small Cap Value II Fund.
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 |
Each class offered by the Trust has equal rights as to assets and voting privileges. Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains and losses of each class are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include administrative service fees, service fees, and distribution fees and vary amongst the classes as described more fully in Note 2.
New Accounting Pronouncements
In May 2011, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and International Financial Reporting Standards (IFRSs). FASB concluded that the amendments in this ASU will improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs. The ASU is effective prospectively during interim or annual periods beginning on or after December 15, 2011.
Management has evaluated the implications of these changes and determined that the impact will only affect the disclosure requirements related to the financial statements.
34 |
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (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 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 for the Funds. Management fees paid by the Funds during the six months ended April 30, 2012 were as follows (dollars in thousands):
Management Fee Rate |
Management Fee |
Amounts paid to Investment Advisors |
Net Amounts Retained by Manager |
|||||||||||
Balanced |
0.175%-0.65% | $939 | $726 | $213 | ||||||||||
Large Cap Growth |
0.35%-0.60% | 358 | 324 | 34 | ||||||||||
Mid-Cap Value |
0.35%-0.90% | 412 | 377 | 35 | ||||||||||
Small Cap Value II |
0.55%-0.65% | 9 | 8 | 1 |
Administrative Services Agreement
The Manager and the Trust entered into an Administrative Services Agreement which obligates the Manager to provide or oversee administrative services to the Funds. As compensation for performing the duties required under the Administrative Services Agreement, the Manager receives an annualized fee of 0.30% of the average daily net assets of the Institutional, Y, Investor, and Advisor Classes, 0.40% of the average daily net assets of the A and C Classes, and 0.05% of the average daily net assets of the AMR Class of each of the Funds.
Distribution Plans
The Funds, except for the Advisor, 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 separate fees will 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 Fund 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.
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, 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 Class and up to 0.375% of the average daily net assets of the Investor Class of the Funds.
35 |
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Investment in Affiliated Funds
The Funds may invest in the American Beacon Money Market Select Fund or the U.S. Government Money Market Select Fund (the USG Select Fund) (collectively, the Select Funds). The Select Funds and the 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 up to 0.09% of the average daily net assets of the Select Fund. During the six months ended April 30, 2012, the Manager earned $2,489 from the Balanced Funds investment in the Select Funds.
Interfund Lending Program
Pursuant to an exemptive order by the Securities and Exchange Commission (SEC), the Funds, along with other registered investment companies having management contracts with the Manager, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Funds to borrow from other participating Funds. During the six months ended April 30, 2012, the Funds did not participate in the program.
Expense Reimbursement Plan
The Manager agreed to reimburse the following Funds to the extent that total annual fund operating expenses exceeded a Funds expense cap. Of these amounts, approximately $11,000 was receivable from the Manager at April 30, 2012 for the Small Cap Value II Fund. For the period ended April 30, 2012, the Manager waived or reimbursed expenses as follows:
Expense Cap | ||||||||||||
Fund |
Class | 11/1/11 to 2/29/12 |
3/1/12 to 4/30/12 |
Waived or Reimbursed Expenses |
Expiration | |||||||
Balanced |
A* | N/A | N/A | 37 | 2015 | |||||||
Balanced |
C* | N/A | N/A | 5 | 2015 | |||||||
Large Cap Growth |
Y* | N/A | N/A | 4 | 2015 | |||||||
Large Cap Growth |
A* | N/A | N/A | 5 | 2015 | |||||||
Large Cap Growth |
C | 2.20% | 2.20% | 14 | 2015 | |||||||
Mid-Cap Value |
Institutional | 0.98% | 0.98% | 9,734 | 2015 | |||||||
Mid-Cap Value |
Y | 1.08% | 1.08% | 33 | 2015 | |||||||
Mid-Cap Value |
Investor | 1.23% | 1.23% | 1,686 | 2015 | |||||||
Mid-Cap Value |
Advisor | 1.49% | 1.49% | 217 | 2015 | |||||||
Mid-Cap Value |
A | 1.49% | 1.49% | 55 | 2015 | |||||||
Mid-Cap Value |
C | 2.24% | 2.24% | 27 | 2015 | |||||||
Small Cap Value II |
Y | 1.09% | 1.09% | 26,436 | 2015 | |||||||
Small Cap Value II |
Investor | 1.37% | 1.37% | 25,702 | 2015 |
* Voluntary reimbursement
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 carryovers for the Balanced Fund are $5,860 expiring in 2014, for the Large Cap Growth Fund $4,632 expiring in 2014, and for the Mid-Cap Value Fund are $11,079, $16,631, and $57,024 expiring 2012, 2013, and 2014, respectively. During the six months ended April 30, 2012, the Funds have not recorded a liability for potential reimbursement, due to the current assessment that a reimbursement is unlikely.
3. Security Valuation and Fair Value Measurements
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
36 |
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
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 (NAV) 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 Trusts Board of Trustees (the Board).
Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, a Fund is required to deposit with its futures broker, an amount of cash or U.S. Government and Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value (variation margin) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities.
Valuation Inputs
Various inputs may be used to determine the fair 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 Funds own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Level 1 and Level 2 trading assets and trading liabilities, at fair value
Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities, and non-U.S. bonds are normally valued by pricing service providers that use broker dealer quotations, reported trades or valuation estimates from their internal pricing models. The service providers internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates, and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
Fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date are categorized as Level 2 of the fair value hierarchy.
37 |
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by pricing service providers that use broker dealer quotations or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows, and market-based yield spreads for each tranche, and incorporates deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
Common stocks and financial derivative instruments, such as futures contracts that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.
Investments in registered open-end investment management companies will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Short-term investments having a maturity of 60 days or less are generally valued at amortized cost which approximates fair value. These investments are categorized as Level 2 of the fair value hierarchy.
Level 3 trading assets and trading liabilities, at fair value
The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of the fair value hierarchy are as follows:
Securities and other assets for which market quotes are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction and are categorized as Level 3 of the fair value hierarchy.
Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the Exchange close, that materially affect the values of a Funds securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade, do not open for trading for the entire day and no other market prices are available. The Board has delegated to the Manager the responsibility for monitoring significant events that may materially affect the fair values of a Funds securities or assets and for determining whether the value of the applicable securities or assets should be re-evaluated in light of such significant events.
The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation methods to the Manager. For instances in which daily market quotes are not readily available, investments may be valued, pursuant to guidelines established by the Board. In the event that the security or asset cannot be valued pursuant to one of the valuation methods established by the Board, the value of the security or asset will be determined in good faith by the Valuation Committee, generally based upon recommendations provided by the Manager.
When a Fund uses fair valuation methods applied by the Manager that use significant unobservable inputs to determine its NAV, the securities priced using this methodology are categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Trusts policy is intended to result in a calculation of a Funds NAV that fairly reflects security values as of the time of pricing, the Trust cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that a Fund could obtain for a security if it were to dispose of that
38 |
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ from the value that would be realized if the securities were sold.
For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in and out of the Level 3 category during the period. The end of period timing recognition is used for the significant transfers between Levels of the Funds assets and liabilities. In accordance with the requirements of U.S. GAAP, a fair value hierarchy and Level 3 reconciliation, if any, have been included in the Notes to the Schedule of Investments for each respective Fund.
The Funds investments are summarized by level based on the inputs used to determine their values. U.S. GAAP also requires all significant transfers between any levels to be disclosed. During the six months ended April 30, 2012, there were no significant transfers into our out of any level for the Funds. As of April 30, 2012, the investments were classified as described below (in thousands):
Balanced Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock |
$ | 541,539 | $ | - | $ | - | $ | 541,539 | ||||||||
Preferred Stock |
1,616 | - | - | 1,616 | ||||||||||||
Corporate Obligations |
- | 143,156 | - | 143,156 | ||||||||||||
Other Government Obligations |
- | 726 | - | 726 | ||||||||||||
U.S. Agency Obligations |
- | 315 | - | 315 | ||||||||||||
Non-Agency Mortgage-Backed Obligations |
- | 8,068 | - | 8,068 | ||||||||||||
Asset-Backed Obligations |
- | 3,686 | - | 3,686 | ||||||||||||
U.S. Agency Mortgage-Backed Obligations |
- | 92,114 | - | 92,114 | ||||||||||||
U.S. Treasury Obligations |
- | 38,204 | - | 38,204 | ||||||||||||
Municipal Obligations |
- | 2,097 | - | 2,097 | ||||||||||||
Short-Term Investments |
34,684 | 12,656 | - | 48,340 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ | 578,839 | $ | 301,022 | $ | - | $ | 879,861 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Futures Contracts |
$ | 332 | $ | - | $ | - | $ | 332 | ||||||||
Large Cap Growth Fund |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Short-Term Investments |
$ | 251,871 | $ | - | $ | - | $ | 251,871 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ | 251,871 | $ | - | $ | - | $ | 251,871 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Futures Contracts |
$ | 5,514 | $ | - | $ | - | $ | 5,514 | ||||||||
Mid-Cap Value Fund |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock |
$ | 191,107 | $ | - | $ | - | $ | 191,107 | ||||||||
Short-Term Investments |
9,259 | - | - | 9,259 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ | 200,366 | $ | - | $ | - | $ | 200,366 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Futures Contracts |
$ | 100 | $ | - | $ | - | $ | 100 | ||||||||
Small Cap Value II Fund |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock |
$ | 3,194 | $ | - | $ | - | $ | 3,194 | ||||||||
Short-Term Investments |
131 | - | - | 131 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ | 3,325 | $ | - | $ | - | $ | 3,325 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Futures Contracts |
$ | 1 | $ | - | $ | - | $ | 1 |
39 |
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (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 NAV. 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 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 Funds 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 gains in the Funds 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. GAAP 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 Trusts organizational documents, its officers and trustees 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
40 |
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
liabilities. The Trusts 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.
4. Securities and Other Investments
Real Estate Investment Trusts
The Funds may own shares of real estate investment trusts (REITs) which report information on the source of their distributions annually. The Funds re-characterize distributions received from REIT investments based on information provided by the REITs into the following categories: ordinary income, long-term capital gains, and return of capital. If information is not available on a timely basis from the REITs, the re-characterization will be estimated based on available information, which may include the previous year allocation. If new or additional information becomes available from the REITs at a later date, a re-characterization will be made the following year. These re-characterizations are not recorded for financial statement purposes, but as an adjustment to the calculation of taxable income.
Restricted Securities
Certain Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities may be sold privately, but are required to be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933. Disposal of restricted securities may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted securities outstanding at the six months ended April 30, 2012 are disclosed in the Notes to the Schedules of Investments.
5. Financial Derivative Instruments
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 a portion of the face value of the futures contract. A Fund usually reflects this amount on the Schedule of Investments as a U.S. Treasury Bill held as collateral for futures contracts or as cash deposited with broker on the Statement 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, 2012 (in thousands): | ||||||||
Statements of Assets and Liabilities | Derivatives | Fair Value | ||||||
Unrealized appreciation of investments and futures contracts |
Equity Contracts* | $332 |
41 |
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Effect of derivative instruments not accounted for as hedging instruments for the six months ended April 30, 2012 (in thousands): | ||||||||
Statements of Operations | Derivatives | Balance | ||||||
Net realized gain (loss) from futures contracts |
Equity Contracts | $ 4,955 | ||||||
Change in net unrealized appreciation or (depreciation) of futures contracts |
Equity Contracts | (2,379 | ) |
Large Cap Growth
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2012 (in thousands): | ||||||||
Statements of Assets and Liabilities | Derivatives | Fair Value | ||||||
Unrealized appreciation of investments and futures contracts |
Equity Contracts | * | $5,514 |
Effect of derivative instruments not accounted for as hedging instruments for the six months ended April 30, 2012 (in thousands): | ||||||||
Statements of Operations | Derivatives | Balance | ||||||
Net realized gain (loss) from futures contracts |
Equity Contracts | $ (910) | ||||||
Change in net unrealized appreciation or (depreciation) of futures contracts |
Equity Contracts | 5,475 |
Mid-Cap Value
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2012 (in thousands): | ||||||||
Statements of Assets and Liabilities | Derivatives | Fair Value | ||||||
Unrealized appreciation of investments and futures contracts |
Equity Contracts | * | $100 |
Effect of derivative instruments not accounted for as hedging instruments for the six months ended April 30, 2012 (in thousands): | ||||||||
Statements of Operations | Derivatives | Balance | ||||||
Net realized gain (loss) from futures contracts |
Equity Contracts | $2,229 | ||||||
Change in net unrealized appreciation or (depreciation) of futures contracts |
Equity Contracts | (146 | ) |
Small Cap Value II
Values of Derivative Instruments not accounted for as hedging instruments as of April 30, 2012 (in thousands): | ||||||||
Statements of Assets and Liabilities | Derivatives | Fair Value | ||||||
Unrealized appreciation of investments and futures contracts |
Equity Contracts | * | $1 |
Effect of derivative instruments not accounted for as hedging instruments for the six months ended April 30, 2012 (in thousands): | ||||||||
Statements of Operations | Derivatives | Balance | ||||||
Net realized gain (loss) from futures contracts |
Equity Contracts | $ - | ||||||
Change in net unrealized appreciation or (depreciation) of futures contracts |
Equity Contracts | - |
*Includes cumulative appreciation or (depreciation) of futures contracts as reported in the Schedule of Investments footnotes. Only current days variation margin is reported within the Statements of Assets and Liabilities.
6. Federal Income and Excise Taxes
It is the policy of each Fund to qualify as a regulated investment company (RIC), by complying with all applicable provisions of Subchapter M of the Internal Revenue Code, as amended, 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, 2011 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.
42 |
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Dividends are categorized in accordance with income tax regulations which may treat certain transactions differently than U.S. GAAP. 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, 2012 and the fiscal year ended October 31, 2011 were as follows (in thousands):
Balanced | Large Cap Growth | |||||||||||||||
Six months ended April 30, 2012 |
Year Ended October 31, 2011 |
Six months ended April 30, 2012 |
Year Ended October 31, 2011 |
|||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Distributions paid from: |
||||||||||||||||
Ordinary income* |
||||||||||||||||
Institutional Class |
$ 467 | $ 876 | $ - | $ - | ||||||||||||
Y Class |
49 | 10 | - | - | ||||||||||||
Investor Class |
1,276 | 1,759 | - | - | ||||||||||||
Advisor Class |
38 | 104 | - | - | ||||||||||||
A Class |
24 | 7 | - | - | ||||||||||||
C Class |
11 | 4 | - | - | ||||||||||||
AMR Class |
11,344 | 21,013 | 170 | 167 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total distributions paid |
$13,209 | $23,773 | $170 | $167 | ||||||||||||
|
|
|
|
|
|
|
|
Mid-Cap Value | Small Cap Value II |
|||||||||||
Six months ended April 30, 2012 |
Year Ended October 31, 2011 |
Period ended April 30, 2012 |
||||||||||
(Unaudited) | (Unaudited) | |||||||||||
Distributions paid from: |
||||||||||||
Ordinary income* |
||||||||||||
Institutional Class |
$ 451 | $ 30 | $ - | |||||||||
Y Class |
1 | - | 1 | |||||||||
Investor Class |
14 | 343 | 2 | |||||||||
Advisor Class |
- | 1 | - | |||||||||
A Class |
1 | - | - | |||||||||
C Class |
- | - | - | |||||||||
AMR Class |
788 | 753 | - | |||||||||
|
|
|
|
|
|
|||||||
Total distributions paid |
$1,255 | $1,127 | $3 | |||||||||
|
|
|
|
|
|
*For tax purposes, short-term capital gains are considered ordinary income distributions.
As of April 30, 2012, the components of distributable earnings (deficits) on a tax basis were as follows (in thousands):
Balanced | Large Cap Growth |
Mid-Cap Value |
Small Cap Value II |
|||||||||||||
Cost basis of investments for federal income tax purposes |
$841,345 | $251,871 | $183,224 | $3,129 | ||||||||||||
Unrealized appreciation |
105,343 | - | 19,904 | 294 | ||||||||||||
Unrealized depreciation |
(66,827 | ) | - | (2,762 | ) | (98 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net unrealized appreciation or (depreciation) |
38,516 | ) | - | 17,142 | 196 | |||||||||||
Undistributed ordinary income |
- | - | 592 | 76 | ||||||||||||
Accumulated long-term gain (loss) |
4,946 | (6,696 | ) | (6,789 | ) | - | ||||||||||
Other temporary differences |
334 | 5,514 | 99 | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Distributable earnings (deficits) |
$43,796 | $(1,182) | $11,044 | $273 | ||||||||||||
|
|
|
|
|
|
|
|
43 |
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
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 or 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 book amortization of premiums.
Due to inherent differences in the recognition of income, expenses and realized gains (losses) under U.S. GAAP 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, Section 732 basis adjustments, non-deductible expenses, and dividend reclasses that have been reclassified as of April 30, 2012 (in thousands):
Balanced | Large Cap Growth |
Mid-Cap Value |
Small Cap Value II |
|||||||||||||
Paid-in-capital |
$ | 4 | $ | (138 | ) | $ | 1 | $ | - | |||||||
Undistributed net investment income |
1,639 | 138 | - | - | ||||||||||||
Accumulated net realized gain (loss) |
(1,643 | ) | - | (1 | ) | - | ||||||||||
Unrealized appreciation or depreciation of investments and futures contracts |
- | - | - | - |
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the RIC MOD) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. One of the more prominent changes addresses capital loss carryforwards. Under the RIC MOD, each Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.
Finally, the RIC MOD contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions. Except for the simplification provisions related to RIC qualification, the RIC MOD is effective for taxable years beginning after December 22, 2010. The provisions related to RIC qualification are effective for taxable years for which the extended due date of the tax return is after December 22, 2010.
As of April 30, 2012, the capital loss carryforward positions that may be applied against realized net taxable gains in each succeeding year or until their expiration dates, whichever occurs first, prior to the provisions of RIC MOD provision, are as follows (in thousands):
Fund |
2017 | 2018 | Total | |||||||||
Large Cap Growth |
$ | 1,182 | $ | - | $ | 1,182 | ||||||
Mid-Cap Value |
6,336 | 353 | 6,689 |
The Balanced, Large Cap Growth, and Mid-Cap Value Funds utilized $14,750, $13,184, and $4,266, respectively, of net capital loss carryforwards for the six months ended April 30, 2012.
44 |
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
7. Investment Transactions
The aggregate cost of purchases and proceeds from sales and maturities of long-term investments during the six months ended April 30, 2012 were as follows (in thousands):
Balanced | Large Cap Growth |
Mid-Cap Value |
Small Cap Value II |
|||||||||||||
Purchases (excluding U.S. government securities) |
$205,438 | $27,567 | $110,198 | $3,964 | ||||||||||||
Sales and maturities (excluding U.S. government securities) |
177,838 | 116,627 | 17,725 | 1,040 | ||||||||||||
Purchases of U.S. government securities |
42,999 | - | - | - | ||||||||||||
Sales and maturities of U.S. government securities |
21,353 | - | - | - |
A summary of the Funds direct transactions in Select Funds for the year ended April 30, 2012 is set forth below (in thousands):
Affiliate | October 31, 2011 Shares/Fair Value |
Purchases | Sales | April 30, 2012 Shares/Fair Value |
||||||||||||||||
Balanced |
USG Select Fund | $5,000 | - | - | $5,000 |
8. Capital Share Transactions
The tables below summarize the activity in capital shares for each Class of the Funds (shares and dollars in thousands):
For the Six Months Ended April 30, 2012
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Balanced Fund | Shares |
Amount |
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold |
598 | $ | 8,144 | 289 | $ | 4,070 | 2,210 | $ | 27,983 | 38 | $ | 499 | ||||||||||||||||||||
Reinvestment of dividends |
33 | 461 | 3 | 48 | 97 | 1,240 | 3 | 38 | ||||||||||||||||||||||||
Shares redeemed |
(216 | ) | (2,884 | ) | (140 | ) | (1,968 | ) | (1,751 | ) | (21,834 | ) | (26 | ) | (327 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase in shares outstanding |
415 | $ | 5,721 | 152 | $ | 2,150 | 556 | $ | 7,389 | 15 | $ | 210 | ||||||||||||||||||||
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|
|
|
|||||||||||||||||
AMR Class | A Class | C Class | ||||||||||||||||||||||||||||||
Balanced Fund | Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
||||||||||||||||||||||||||
Shares sold | 12,350 | $ | 157,544 | 154 | $ | 1,967 | 46 | $ | 595 | |||||||||||||||||||||||
Reinvestment of dividends |
860 | 11,344 | 1 | 18 | 1 | 9 | ||||||||||||||||||||||||||
Shares redeemed | (12,580 | ) | (154,350 | ) | (14 | ) | (186 | ) | (9 | ) | (104 | ) | ||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net increase in shares outstanding |
630 | $ | 14,538 | 141 | $ | 1,799 | 38 | $ | 500 | |||||||||||||||||||||||
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|||||||||||||||||||||
Institutional Class | Y Class | AMR Class | ||||||||||||||||||||||||||||||
Large Cap Growth Fund (Closed) | Shares |
Amount |
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Shares sold |
- | $ | - | - | $ | - | 27,630 | $ | 187,370 | |||||||||||||||||||||||
Reinvestment of dividends |
- | - | - | - | 28 | 170 | ||||||||||||||||||||||||||
Shares redeemed |
(9 | ) | (56 | ) | - | - | (2,972 | ) | (18,746 | ) | ||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net increase (decrease) in shares outstanding |
(9 | ) | $ | (56 | ) | - | $ | - | 24,686 | $ | 168,794 | |||||||||||||||||||||
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|
|||||||||||||||||||||
A Class | C Class | |||||||||||||||||||||||||||||||
Large Cap Growth Fund (Closed) | Shares |
Amount |
Shares |
Amount |
||||||||||||||||||||||||||||
Shares sold |
7 | $ | 49 | - | $ | - | ||||||||||||||||||||||||||
Reinvestment of dividends |
- | - | - | - | ||||||||||||||||||||||||||||
Shares redeemed |
(18 | ) | (114 | ) | - | - | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net (decrease) in shares outstanding |
(11 | ) | $ | (65 | ) | - | $ | - | ||||||||||||||||||||||||
|
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|
|
|
|
|
45 |
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Mid-Cap Value Fund |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
||||||||||||||||||||||||
Shares sold |
238 | $ | 2,452 | 5 | $ | 48 | 127 | $ | 1,307 | 1 | $ | 12 | ||||||||||||||||||||
Reinvestment of dividends |
46 | 450 | - | 1 | 1 | 13 | - | - | ||||||||||||||||||||||||
Shares redeemed |
(266 | ) | (2,691 | )* | - | (1 | )* | (77 | ) | (822 | )* | - | (1 | )* | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase in shares outstanding |
18 | $ | 211 | 5 | $ | 48 | 51 | $ | 498 | 1 | $ | 11 | ||||||||||||||||||||
|
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|
|
|||||||||||||||||
AMR Class | A Class | C Class | ||||||||||||||||||||||||||||||
Mid-Cap Value Fund |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
||||||||||||||||||||||||||
Shares sold |
10,054 | $ | 104,620 | 15 | $ | 160 | 2 | $ | 17 | |||||||||||||||||||||||
Reinvestment of dividends |
80 | 788 | - | - | - | - | ||||||||||||||||||||||||||
Shares redeemed |
(1,179 | ) | (11,679 | )* | - | - | * | - | - | * | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net increase in shares outstanding |
8,955 | $ | 93,729 | 15 | $ | 160 | 2 | $ | 17 | |||||||||||||||||||||||
|
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|
|
|
|
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|
|||||||||||||||||||||
Y Class | Investor Class | |||||||||||||||||||||||||||||||
Small Cap Value II Fund |
Shares |
Amount |
Shares |
Amount |
||||||||||||||||||||||||||||
Shares sold |
8 | $ | 85 | 1 | $ | 5 | ||||||||||||||||||||||||||
Reinvestment of dividends |
- | 1 | - | 2 | ||||||||||||||||||||||||||||
Shares redeemed |
- | - | - | - | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net increase in shares outstanding |
8 | $ | 86 | 1 | $ | 7 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
* Net of Redemption Fees |
||||||||||||||||||||||||||||||||
For the Year Ended October 31, 2011 | ||||||||||||||||||||||||||||||||
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 | ) | ||||||||||||||||
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|||||||||||||||||
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 | |||||||||||||||||||||||
|
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|
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|
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|
|||||||||||||||||||||
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 | |||||||||||||||||||||
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|
|||||||||||||||||||||
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 | ||||||||||||||||||||||||||
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|
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|
|
46 |
American Beacon Funds
Notes to Financial Statements
April 30, 2011 (Unaudited)
Institutional Class | Y Class | Investor Class | Advisor Class | |||||||||||||||||||||||||||||
Mid-Cap Value Fund |
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold |
59 | $ | 507 | - | $ | 1 | 1,672 | $ | 14,465 | 8 | $ | 64 | ||||||||||||||||||||
Reinvestment of dividends |
2 | 14 | - | - | 20 | 161 | - | - | ||||||||||||||||||||||||
Shares redeemed |
(51 | ) | (439 | )* | - | - | * | (963 | ) | (8,239 | )* | - | - | * | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) in shares outstanding |
10 | $ | 82 | - | $ | 1 | 729 | $ | 6,387 | 8 | $ | 64 | ||||||||||||||||||||
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|||||||||||||||||
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 | )* | - | - | * | - | - | * | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net increase (decrease) in shares outstanding |
(162 | ) | $ | (1,095 | ) | 2 | $ | 17 | - | $ | 1 | |||||||||||||||||||||
|
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|
* Net of Redemption Fees
9. Subsequent Events
On March 1, 2012 the Manager announced the Boards approval of a plan to liquidate and terminate the American Beacon Large Cap Growth Fund. On May 21, 2012 the Fund liquidated all remaining assets and terminated.
47 |
American Beacon Balanced FundSM
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class |
|
||||||||||||||||||||||||||||||||||||||
Six Months April 30, |
Year Ended October 31, | Six Months April 30, |
Year October 31, |
March 1 to October 31, |
Six Months April 30, |
|||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2012 | 2011 | 2010 | 2012 | |||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 12.89 | $ | 12.62 | $ | 11.83 | $ | 10.63 | $ | 16.09 | $ | 15.83 | $ | 12.93 | $ | 12.78 | $ | 12.20 | $ | 11.93 | ||||||||||||||||||||
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|||||||||||||||||||||
Income from investment operations: |
||||||||||||||||||||||||||||||||||||||||
Net investment income |
0.17 | 0.32 | 0.35 | 0.43 | 0.47 | 0.50 | 0.04 | 0.36 | 0.16 | 0.16 | ||||||||||||||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
1.11 | 0.29 | 1.10 | 1.25 | (4.70) | 0.90 | 1.23 | 0.24 | 0.57 | 1.01 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
Total income (loss) from investment operations | 1.28 | 0.61 | 1.45 | 1.68 | (4.23) | 1.40 | 1.27 | 0.60 | 0.73 | 1.17 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
Less distributions: |
||||||||||||||||||||||||||||||||||||||||
Dividends from net investment income |
(0.17) | (0.34) | (0.66) | (0.48) | (0.44) | (0.42) | (0.16) | (0.45) | (0.15) | (0.18) | ||||||||||||||||||||||||||||||
Distributions from net realized gains on securities |
- | - | - | - | (0.79) | (0.72) | - | - | - | - | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
Total distributions |
(0.17) | (0.34) | (0.66) | (0.48) | (1.23) | (1.14) | (0.16) | (0.45) | (0.15) | (0.18) | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
Net asset value, end of period |
$ | 14.00 | $ | 12.89 | $ | 12.62 | $ | 11.83 | $ | 10.63 | $ | 16.09 | $ | 14.04 | $ | 12.93 | $ | 12.78 | $ | 12.92 | ||||||||||||||||||||
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|||||||||||||||||||||
Total return A |
9.94%B | 4.87% | 12.47% | 16.64% | (28.23)% | 9.31% | 9.83%B | 4.73% | 5.99%B | 9.79%B | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
Ratios and supplemental data: |
||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$39,436 | $30,962 | $33,405 | $29,808 | $36,557 | $51,399 | $2,576 | $401 | $46 | $97,756 | ||||||||||||||||||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||||||||||||||||||
Expenses, before reimbursements |
0.57% | 0.58% | 0.58% | 0.60% | 0.56% | 0.57% | 0.67% | 1.48% | 0.68%C | 0.91% | ||||||||||||||||||||||||||||||
Expenses, net of reimbursements |
0.57% | 0.58% | 0.58% | 0.60% | 0.56% | 0.57% | 0.67% | 0.70% | 0.68%C | 0.91% | ||||||||||||||||||||||||||||||
Net investment income, before reimbursements |
2.45% | 2.49% | 2.67% | 3.60% | 3.37% | 2.91% | 2.16% | 1.55% | 2.54%C | 2.12% | ||||||||||||||||||||||||||||||
Net investment income, net of reimbursements |
2.45% | 2.49% | 2.67% | 3.60% | 3.37% | 2.91% | 2.16% | 2.34% | 2.54%C | 2.12% | ||||||||||||||||||||||||||||||
Portfolio turnover rate | 22%B | 47% | 40% | 57% | 53% | 50% | 22%B | 47% | 40%D | 22%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.
48 |
American Beacon Balanced FundSM
Financial Highlights
(For a share outstanding throughout the period)
Investor Class | Advisor Class | A Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, | Six Months April 30, |
Year Ended October 31, | Six Months April 30, |
Year 31, |
May 17 to October 31, |
|||||||||||||||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 11.66 | $ | 10.96 | $ | 9.91 | $ | 15.09 | $ | 14.91 | $ | 12.36 | $ | 12.11 | $ | 11.35 | $ | 9.77 | $ | 14.95 | $ | 14.83 | $ | 12.06 | $ | 11.94 | $ | 11.50 | |||||||||||||||||||||||||||
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0.25 | 0.25 | 0.30 | 0.41 | 0.41 | 0.11 | 0.41 | 0.32 | 0.37 | 0.34 | 0.41 | 0.21 | 0.38 | 0.02 | |||||||||||||||||||||||||||||||||||||||||
0.28 | 1.04 | 1.23 | (4.39) | 0.87 | 1.09 | 0.11 | 1.01 | 1.21 | (4.31) | 0.83 | 0.95 | 0.14 | 0.43 | |||||||||||||||||||||||||||||||||||||||||
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0.53 | 1.29 | 1.53 | (3.98) | 1.28 | 1.20 | 0.52 | 1.33 | 1.58 | (3.97) | 1.24 | 1.16 | 0.52 | 0.45 | |||||||||||||||||||||||||||||||||||||||||
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(0.26) | (0.59) | (0.48) | (0.41) | (0.38) | (0.13) | (0.27) | (0.57) | - | (0.42) | (0.40) | (0.28) | (0.40) | (0.01) | |||||||||||||||||||||||||||||||||||||||||
- | - | - | (0.79) | (0.72) | - | - | - | - | (0.79) | (0.72) | - | - | - | |||||||||||||||||||||||||||||||||||||||||
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(0.26) | (0.59) | (0.48) | (1.20) | (1.10) | (0.13) | (0.27) | (0.57) | - | (1.21) | (1.12) | (0.28) | (0.40) | (0.01) | |||||||||||||||||||||||||||||||||||||||||
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$ | 11.93 | $ | 11.66 | $ | 10.96 | $ | 9.91 | $ | 15.09 | $ | 13.43 | $ | 12.36 | $ | 12.11 | $ | 11.35 | $ | 9.77 | $ | 14.95 | $ | 12.94 | $ | 12.06 | $ | 11.94 | |||||||||||||||||||||||||||
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4.52% | 12.06% | 16.29% | (28.39)% | 9.06% | 9.68%B | 4.33% | 11.96% | 16.17% | (28.65)% | 8.83% | 9.69%B | 4.37% | 3.90%B | |||||||||||||||||||||||||||||||||||||||||
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$83,657 | $84,500 | $94,915 | $105,473 | $202,750 | $4,044 | $3,536 | $6,127 | $6,812 | $7,674 | $9,504 | $2,461 | $588 | $47 | |||||||||||||||||||||||||||||||||||||||||
0.92% | 0.93% | 0.89% | 0.82% | 0.83% | 1.08% | 1.09% | 1.09% | 1.09% | 1.07% | 1.07% | 1.09% | 1.59% | 1.08%C | |||||||||||||||||||||||||||||||||||||||||
0.92% | 0.93% | 0.89% | 0.82% | 0.83% | 1.08% | 1.09% | 1.09% | 1.09% | 1.07% | 1.07% | 1.08% | 1.10% | 1.08%C | |||||||||||||||||||||||||||||||||||||||||
2.16% | 2.34% | 3.26% | 3.12% | 2.65% | 1.96% | 2.01% | 2.18% | 3.06% | 2.86% | 2.34% | 1.82% | 1.47% | 1.51%C | |||||||||||||||||||||||||||||||||||||||||
2.16% | 2.34% | 3.26% | 3.12% | 2.65% | 1.96% | 2.01% | 2.18% | 3.06% | 2.86% | 2.34% | 1.83% | 1.95% | 1.51%C | |||||||||||||||||||||||||||||||||||||||||
47% | 40% | 57% | 53% | 50% | 22%B | 47% | 40% | 57% | 53% | 50% | 22%B | 47% | 40%D |
49 |
American Beacon Balanced FundSM
Financial Highlights
(For a share outstanding throughout the period)
C Class | AMR Class | |||||||||||||||||||||||||||||||||||
Six Months Ended |
Year Ended October |
September 1 to October |
Six Months Ended |
Year Ended October 31, | ||||||||||||||||||||||||||||||||
April 30, 2012 |
31, 2011 |
31, 2010 |
April 30, 2012 |
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 12.13 | $ | 11.92 | $ | 11.32 | $ | 12.27 | $ | 12.02 | $ | 11.31 | $ | 10.19 | $ | 15.49 | $ | 15.27 | ||||||||||||||||||
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Income from investment operations: |
||||||||||||||||||||||||||||||||||||
Net investment income |
0.07 | 0.20 | 0.01 | 0.19 | 0.34 | 0.35 | 0.39 | 0.49 | 0.50 | |||||||||||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
1.05 | 0.22 | 0.59 | 1.05 | 0.27 | 1.07 | 1.24 | (4.52) | 0.89 | |||||||||||||||||||||||||||
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Total income (loss) from investment operations |
1.12 | 0.42 | 0.60 | 1.24 | 0.61 | 1.42 | 1.63 | (4.03) | 1.39 | |||||||||||||||||||||||||||
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Less distributions: |
||||||||||||||||||||||||||||||||||||
Dividends from net investment income |
(0.10) | (0.21) | 0.00 | (0.21) | (0.36) | (0.71) | (0.51) | (0.48) | (0.45) | |||||||||||||||||||||||||||
Distributions from net realized gains on securities |
- | - | - | - | - | - | - | (0.79) | (0.72) | |||||||||||||||||||||||||||
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Total distributions |
(0.10) | (0.21) | 0.00 | (0.21) | (0.36) | (0.71) | (0.51) | (1.27) | (1.17) | |||||||||||||||||||||||||||
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Net asset value, end of period |
$ | 13.15 | $ | 12.13 | $ | 11.92 | $ | 13.30 | $ | 12.27 | $ | 12.02 | $ | 11.31 | $ | 10.19 | $ | 15.49 | ||||||||||||||||||
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Total return A |
9.26%B | 3.56% | 5.33%B | 10.09%B | 5.09% | 12.84% | 16.95% | (28.08)% | 9.59% | |||||||||||||||||||||||||||
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Ratios and supplemental data: |
||||||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$1,503 | $922 | $1 | $804,876 | $734,927 | $748,422 | $681,197 | $604,209 | $898,584 | |||||||||||||||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||||||||||||||
Expenses, before reimbursements. |
1.83% | 2.34% | 2.14%C | 0.31% | 0.33% | 0.33% | 0.35% | 0.31% | 0.31% | |||||||||||||||||||||||||||
Expenses, net of reimbursements |
1.83% | 1.82% | 1.86%C | 0.31% | 0.33% | 0.33% | 0.35% | 0.31% | 0.31% | |||||||||||||||||||||||||||
Net investment income, before reimbursements |
1.15% | 0.66% | 0.20%C | 2.76% | 2.75% | 2.92% | 3.75% | 3.62% | 3.21% | |||||||||||||||||||||||||||
Net investment income, net of reimbursements |
1.15% | 1.18% | 0.48%C | 2.76% | 2.75% | 2.92% | 3.75% | 3.62% | 3.21% | |||||||||||||||||||||||||||
Portfolio turnover rate |
22%B | 47% | 40%D | 22%B | 47% | 40% | 57% | 53% | 50% |
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. |
50 |
This page intentionally left blank.
51 |
American Beacon Large Cap Growth FundSM
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | ||||||||||||||||||||||||
Six Months April 30, |
Year Ended October 31, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009A | 2008 | 2007 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 6.12 | $ | 5.84 | $ | 4.97 | $ | 4.49 | $ | 7.67 | $ | 6.89 | ||||||||||||
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Income from investment operations: |
||||||||||||||||||||||||
Net investment income (loss) |
(0.03) | (0.01) | 0.00 | 0.03 | 0.05 | 0.04 | ||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
0.75 | 0.30 | 0.88 | 0.50 | (2.97) | 0.77 | ||||||||||||||||||
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|||||||||||||
Total income (loss) from investment operations |
0.72 | 0.29 | 0.88 | 0.53 | (2.92) | 0.81 | ||||||||||||||||||
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Less distributions: |
||||||||||||||||||||||||
Dividends from net investment income |
- | (0.01) | (0.01) | (0.05) | (0.04) | (0.03) | ||||||||||||||||||
Distributions from net realized gains on securities |
- | - | - | - | (0.22) | - | ||||||||||||||||||
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Total distributions |
- | (0.01) | (0.01) | (0.05) | (0.26) | (0.03) | ||||||||||||||||||
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Net asset value, end of period |
$ | 6.84 | $ | 6.12 | $ | 5.84 | $ | 4.97 | $ | 4.49 | $ | 7.67 | ||||||||||||
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Total return B,C |
11.95%D | 4.92% | 17.70% | 12.09% | (39.35)% | 11.84% | ||||||||||||||||||
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Ratios and supplemental data: |
||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$97 | $143 | $125 | $130 | $83 | $119 | ||||||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||
Expenses, before reimbursements |
1.07% | 1.06% | 0.94% | 0.94% | 0.95% | 1.06% | ||||||||||||||||||
Expenses, net of reimbursements |
1.07% | 1.06% | 0.94% | 0.93% | 0.89% | 0.90% | ||||||||||||||||||
Net investment income (loss), before reimbursements |
(0.28)% | (0.15)% | (0.02)% | 0.36% | 0.68% | 0.42% | ||||||||||||||||||
Net investment income (loss), net of reimbursements |
(0.28)% | (0.15)% | (0.02)% | 0.38% | 0.74% | 0.58% | ||||||||||||||||||
Portfolio turnover rate |
40%D | 179% | 92% | 147% | 112% | 128% |
A | On March 17, 2009, Winslow Capital Management, Inc. assumed management of the Large Cap Growth Funds assets previously managed by Goldman Sachs Asset Management, L.P. |
B | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. |
C | May include adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. |
D | Not annualized. |
E | Annualized. |
F | Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010. |
52 |
American Beacon Large Cap Growth FundSM
Financial Highlights
(For a share outstanding throughout the period)
Y Class | A Class | C Class | ||||||||||||||||||||||||||||||||
Six Months |
Year Ended October 31, |
March 1 to October 31, |
Six Months |
Year Ended October 31, |
May 17 to October 31, |
Six Months |
Year Ended October 31, |
September 1 to October 31, |
||||||||||||||||||||||||||
2012 |
2011 | 2010 | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||
$ | 6.09 | $ | 5.83 | $ | 5.41 | $ | 6.08 | $ | 5.83 | $ | 5.40 | $ | 6.05 | $ | 5.83 | $ | 5.17 | |||||||||||||||||
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(0.02) | (0.09) | 0.00 | (0.07) | (0.06) | (0.01) | (0.05) | (0.07) | (0.02) | ||||||||||||||||||||||||||
0.72 | 0.36 | 0.42 | 0.77 | 0.31 | 0.44 | 0.71 | 0.29 | 0.68 | ||||||||||||||||||||||||||
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0.70 | 0.27 | 0.42 | 0.70 | 0.25 | 0.43 | 0.66 | 0.22 | 0.66 | ||||||||||||||||||||||||||
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|||||||||||||||||
- | (0.01) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
- | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
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- | (0.01) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
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$6.79 | $ | 6.09 | $ | 5.83 | $ | 6.78 | $ | 6.08 | $ | 5.83 | $ | 6.71 | $ | 6.05 | $ | 5.83 | ||||||||||||||||||
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|||||||||||||||||
11.49%D | 4.58% | 7.76%D | 11.51%D | 4.29% | 7.96%D | 11.09%D | 3.77% | 12.77%D | ||||||||||||||||||||||||||
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$7 | $6 | $22 | $125 | $176 | $7 | $1 | $1 | $1 | ||||||||||||||||||||||||||
1.62% | 9.75% | 1.06%E | 1.52% | 1.98% | 1.49%E | 4.59% | 141.71% | 3.14%E | ||||||||||||||||||||||||||
1.50% | 1.28% | 1.06%E | 1.51% | 1.54% | 1.49%E | 2.25% | 2.17% | 2.20%E | ||||||||||||||||||||||||||
(0.86)% | (8.81)% | (0.33)%E | (0.72)% | (1.10)% | (0.90)%E | (3.81)% | (140.73)% | (2.62)%E | ||||||||||||||||||||||||||
(0.75)% | (0.34)% | (0.33)%E | (0.72)% | (0.90)%E | (0.65)% | (1.47)% | (1.20)% | (1.68)%E | ||||||||||||||||||||||||||
40%D | 179% | 92%F | 40%D | 179% | 92%F | 40%D | 179% | 92%F |
53 |
American Beacon Large Cap Growth FundSM
Financial Highlights
(For a share outstanding throughout the period)
AMR Class | ||||||||||||||||||||||||
Six Months Ended April 30, 2012 |
Year Ended October 31, | |||||||||||||||||||||||
2011 | 2010 | 2009A | 2008 | 2007 | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 6.17 | $ | 5.88 | $ | 5.00 | $ | 4.52 | $ | 7.72 | $ | 6.95 | ||||||||||||
|
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|
|
|||||||||||||
Income from investment operations: |
||||||||||||||||||||||||
Net investment income (loss) |
0.00 | 0.02 | 0.01 | 0.04 | 0.07 | 0.06 | ||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
0.73 | 0.28 | 0.89 | 0.51 | (2.99) | 0.77 | ||||||||||||||||||
|
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|
|
|
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|
|
|
|||||||||||||
Total income (loss) from investment operations |
0.73 | 0.30 | 0.90 | 0.55 | (2.92) | 0.83 | ||||||||||||||||||
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|||||||||||||
Less distributions: |
||||||||||||||||||||||||
Dividends from net investment income |
(0.01) | (0.01) | (0.02) | (0.07) | (0.06) | (0.06) | ||||||||||||||||||
Distributions from net realized gains on securities |
- | - | - | - | (0.22) | - | ||||||||||||||||||
|
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|
|||||||||||||
Total distributions |
(0.01) | (0.01) | (0.02) | (0.07) | (0.28) | (0.06) | ||||||||||||||||||
|
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|||||||||||||
Net asset value, end of period |
$ | 6.89 | $ | 6.17 | $ | 5.88 | $ | 5.00 | $ | 4.52 | $ | 7.72 | ||||||||||||
|
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|
|||||||||||||
Total return B,C |
11.92%D | 5.13% | 18.11% | 12.46% | (39.17)% | 12.07% | ||||||||||||||||||
|
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|
|||||||||||||
Ratios and supplemental data: |
||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$265,942 | $85,764 | $96,978 | $71,154 | $56,976 | $101,698 | ||||||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||
Expenses, before reimbursements |
0.68% | 0.75% | 0.69% | 0.63% | 0.59% | 0.60% | ||||||||||||||||||
Expenses, net of reimbursements |
0.68% | 0.75% | 0.69% | 0.63% | 0.59% | 0.60% | ||||||||||||||||||
Net investment income (loss), before reimbursements |
(0.10)% | 0.21% | 0.19% | 0.86% | 1.05% | 0.85% | ||||||||||||||||||
Net investment income (loss), net of reimbursements |
(0.10)% | 0.21% | 0.19% | 0.86% | 1.05% | 0.85% | ||||||||||||||||||
Portfolio turnover rate |
40%D | 179% | 92% | 147% | 112% | 128% |
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 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable.
C May include adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.
D Not annualized.
E Annualized.
F Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010.
54 |
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55 |
American Beacon Mid-Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | |||||||||||||||||||||||||||||||
Six Months Ended April 30, 2012 |
Year Ended October 31, | Six Months Ended April 30, 2012 |
Year Ended October 31, 2011A |
|||||||||||||||||||||||||||||
2011A | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 9.73 | $ | 9.27 | $ | 7.57 | $ | 5.94 | $ | 11.01 | $ | 10.81 | $ | 9.72 | $ | 9.27 | ||||||||||||||||
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Income from investment operations: |
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Net investment income (loss) |
0.06 | 0.09 | 0.08 | 0.10 | 0.16 | 0.12 | 0.09 | 0.08 | ||||||||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
1.23 | 0.48 | 1.67 | 1.65 | (4.31) | 0.41 | 1.20 | 0.48 | ||||||||||||||||||||||||
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Total income (loss) from investment operations |
1.29 | 0.57 | 1.75 | 1.75 | (4.15) | 0.53 | 1.29 | 0.56 | ||||||||||||||||||||||||
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Less distributions: |
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Dividends from net investment income |
(0.13) | (0.11) | (0.05) | (0.12) | (0.16) | (0.07) | (0.14) | (0.11) | ||||||||||||||||||||||||
Distributions from net realized gains on securities |
- | - | - | - | (0.76) | (0.26) | - | - | ||||||||||||||||||||||||
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Total distributions |
(0.13) | (0.11) | (0.05) | (0.12) | (0.92) | (0.33) | (0.14) | (0.11) | ||||||||||||||||||||||||
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Redemption fees added to beneficial interestsC |
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||
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Net asset value, end of period |
$ | 10.89 | $ | 9.73 | $ | 9.27 | $ | 7.57 | $ | 5.94 | $ | 11.01 | $ | 10.87 | $ | 9.72 | ||||||||||||||||
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Total return D,E |
13.44%F | 6.08% | 23.19% | 30.24% | (40.86)% | 4.97% | 13.45%F | 5.98% | ||||||||||||||||||||||||
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Ratios and supplemental data: |
||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$37,622 | $ | 33,441 | $ | 2,778 | $ | 2,197 | $ | 2,256 | $ | 6,047 | $107 | $52 | |||||||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||||||||||
Expenses, before reimbursements |
1.03% | 1.10% | 1.06% | 1.13% | 1.16% | 1.09% | 1.16% | 11.62% | ||||||||||||||||||||||||
Expenses, net of reimbursements |
0.97% | 0.97% | 0.98% | 0.98% | 0.98% | 0.92% | 1.07% | 1.06% | ||||||||||||||||||||||||
Net investment income (loss), before reimbursements |
1.16% | 0.91% | 0.90% | 1.14% | 1.33% | 1.05% | 1.01% | (9.44)% | ||||||||||||||||||||||||
Net investment income, net of reimbursements |
1.22% | 1.04% | 0.99% | 1.29% | 1.51% | 1.22% | 1.10% | 1.12% | ||||||||||||||||||||||||
Portfolio turnover rate |
14%F | 107% | 40% | 42% | 28% | 35% | 14%F | 107% |
A Lee Munder Capital Group, LLC was added as an investment manager to the Mid-Cap Value Fund on July 1, 2011.
B Based on average shares outstanding.
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 financial 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 Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010.
I Portfolio turnover rate is for the period from November 1, 2006 through October 31, 2007.
56 |
American Beacon Mid-Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
|
Investor Class | Advisor Class | ||||||||||||||||||||||||||||||||||||||||||||||||
March 1 to October 31, 2010 |
Six Months Ended April 30, 2012 |
Year Ended October 31, | Six Months Ended April 30, 2012 |
Year Ended October 31, | June 29 to October 31, 2007 |
|||||||||||||||||||||||||||||||||||||||||||||
2011A | 2010 | 2009 | 2008 | 2007 | 2011A | 2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | 8.48 | $ | 9.71 | $ | 9.20 | $ | 7.54 | $ | 5.92 | $ | 10.96 | $ | 10.80 | $ | 9.56 | $ | 9.12 | $ | 7.49 | $ | 5.87 | $ | 10.94 | $ | 11.73 | |||||||||||||||||||||||||
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0.06 | 0.15 | (0.03)B | 0.06 | 0.07 | 0.14 | 0.10 | 0.04 | 0.07 | 0.07 | 0.15 | 0.10 | 0.01 | ||||||||||||||||||||||||||||||||||||||
0.73 | 1.14 | 0.63 | 1.65 | 1.66 | (4.31) | 0.40 | 1.21 | 0.45 | 1.61 | 1.60 | (4.27) | (0.80) | ||||||||||||||||||||||||||||||||||||||
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0.79 | 1.29 | 0.60 | 1.71 | 1.73 | (4.17) | 0.50 | 1.25 | 0.52 | 1.68 | 1.75 | (4.17) | (0.79) | ||||||||||||||||||||||||||||||||||||||
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- | (0.07) | (0.09) | (0.05) | (0.11) | (0.11) | (0.08) | (0.03) | (0.08) | (0.05) | (0.13) | (0.14) | - | ||||||||||||||||||||||||||||||||||||||
- | - | - | - | - | (0.76) | (0.26) | - | - | - | - | (0.76) | - | ||||||||||||||||||||||||||||||||||||||
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- | (0.07) | (0.09) | (0.05) | (0.11) | (0.87) | (0.34) | (0.03) | (0.08) | (0.05) | (0.13) | (0.90) | - | ||||||||||||||||||||||||||||||||||||||
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0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||||||||||||||
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$ | 9.27 | $ | 10.93 | $ | 9.71 | $ | 9.20 | $ | 7.54 | $ | 5.92 | $ | 10.96 | $ | 10.78 | $ | 9.56 | $ | 9.12 | $ | 7.49 | $ | 5.87 | $ | 10.94 | |||||||||||||||||||||||||
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9.32%F | 13.32%F | 6.49% | 22.77% | 29.93% | (41.04)% | 4.68% | 13.12%F | 5.65% | 22.53% | 30.64% | (41.28)% | (6.73)%F | ||||||||||||||||||||||||||||||||||||||
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$1 | $2,592 | $1,812 | $35,223 | $23,369 | $16,550 | $43,158 | $54 | $37 | $78 | $7 | $1 | $1 | ||||||||||||||||||||||||||||||||||||||
1.05%G | 1.37% | 1.32% | 1.27% | 1.34% | 1.32% | 1.26% | 2.42% | 1.98% | 1.55% | 1.58% | 2.04% | 1.80%G | ||||||||||||||||||||||||||||||||||||||
1.01%G | 1.23% | 1.23% | 1.23% | 1.23% | 1.23% | 1.23% | 1.48% | 1.49% | 1.44% | 1.50% | 1.50% | 1.50%G | ||||||||||||||||||||||||||||||||||||||
0.93%G | 0.79% | 1.33% | 0.70% | 0.87% | 1.18% | 0.90% | (0.27)% | 0.21% | 0.36% | 0.14% | 0.48% | 0.02%G | ||||||||||||||||||||||||||||||||||||||
0.97%G | 0.94% | 1.42% | 0.75% | 0.98% | 1.27% | 0.93% | 0.66% | 0.69% | 0.47% | 0.22% | 1.02% | 0.32%G | ||||||||||||||||||||||||||||||||||||||
40%H | 14%F | 107% | 40% | 42% | 28% | 35% | 14%F | 107% | 40% | 42% | 28% | 35%I |
57 |
American Beacon Mid-Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
A Class | C Class | AMR Class | ||||||||||||||||||||||||||||||
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011A |
May 17 to October 31, 2010 |
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011A |
September 1 to October 31, 2010 |
Six Months Ended April 30, 2012 |
Year Ended October 31, |
|||||||||||||||||||||||||
2011A | ||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 9.61 | $ | 9.18 | $ | 9.00 | $ | 9.56 | $ | 9.18 | $ | 8.30 | $ | 9 .73 | $ | 9 .27 | ||||||||||||||||
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Income from investment operations: |
||||||||||||||||||||||||||||||||
Net investment income (loss) |
0 .05 | 0 .11 | 0 .01 | 0 .03 | 0 .05 | (0.01) | 0 .04 | 0 .15 | ||||||||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
1 .21 | 0 .40 | 0 .17 | 1 .18 | 0 .38 | 0 .89 | 1 .27 | 0 .43 | ||||||||||||||||||||||||
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Total income (loss) from investment operations |
1 .26 | 0 .51 | 0 .18 | 1 .21 | 0 .43 | 0 .88 | 1 .31 | 0 .58 | ||||||||||||||||||||||||
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Less distributions: |
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Dividends from net investment income |
(0.08) | (0.08) | - | (0.07) | (0.05) | - | (0 .15) | (0 .12) | ||||||||||||||||||||||||
Distributions from net realized gains on securities |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
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Total distributions |
(0.08) | (0.08) | - | (0.07) | (0.05) | - | (0 .15) | (0 .12) | ||||||||||||||||||||||||
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Redemption fees added to beneficial interestsC |
0 .00 | 0 .00 | 0 .00 | 0 .00 | 0 .00 | 0 .00 | 0 .00 | 0 .00 | ||||||||||||||||||||||||
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Net asset value, end of period |
$ | 10.79 | $ | 9 .61 | $ | 9.18 | $ | 10.70 | $ | 9 .56 | $ | 9 .18 | $ | 10 .89 | $ | 9 .73 | ||||||||||||||||
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Total return D,E |
13.14%F | 5.49% | 2.00%F | 12.75%F | 4.64% | 10.60%F | 13 .50%F | 6 .20% | ||||||||||||||||||||||||
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Ratios and supplemental data: |
||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$279 | $101 | $18 | $43 | $22 | $1 | $161,198 | $56,963 | ||||||||||||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||||||||||
Expenses, before reimbursements |
1.54% | 3.44% | 1.51%G | 2.41% | 19.14% | 3.20%G | 0 .75% | 0 .83% | ||||||||||||||||||||||||
Expenses, net of reimbursements |
1.48% | 1.48% | 1.48%G | 2.24% | 2.24% | 2.24%G | 0 .75% | 0 .83% | ||||||||||||||||||||||||
Net investment income (loss), before reimbursements |
0.51% | (1.36)% | 0.44%G | (0.23)% | (16.96)% | (1.32)%G | 1 .41% | 1 .34% | ||||||||||||||||||||||||
Net investment income (loss), net of reimbursements |
0.57% | 0.60% | 0.47%G | (0.05)% | (0.06)% | (0.36)%G | 1 .41% | 1 .34% | ||||||||||||||||||||||||
Portfolio turnover rate |
14%F | 107% | 40%H | 14%F | 107% | 40%H | 14%F | 107% |
A Lee Munder Capital Group, LLC was added as an investment manager to the Mid-Cap Value Fund on July 1, 2011.
B Based on average shares outstanding.
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 financial 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 Portfolio turnover rate is for the period from November 1, 2009 through October 31, 2010.
I Portfolio turnover rate is for the period from November 1, 2006 through October 31, 2007.
58 |
American Beacon Mid-Cap Value FundSM
Financial Highlights
(For a share outstanding throughout the period)
2010 | 2009 | 2008 | 2007 | |||||||||||||||||||||||||||||||
$ | 7.59 | $ | 5.97 | $ | 11.07 | $ | 10.87 | |||||||||||||||||||||||||||
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0.10 | 0.07 | 0.18 | 0.18 | |||||||||||||||||||||||||||||||
1.66 | 1.70 | (4.35) | 0.36 | |||||||||||||||||||||||||||||||
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1.76 | 1.77 | (4.17) | 0.54 | |||||||||||||||||||||||||||||||
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(0.08) | (0.15) | (0.17) | (0.08) | |||||||||||||||||||||||||||||||
- | - | (0.76) | (0.26) | |||||||||||||||||||||||||||||||
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(0.08) | (0.15) | (0.93) | (0 .34) | |||||||||||||||||||||||||||||||
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0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||||||||
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$ | 9.27 | $ | 7.59 | $ | 5.97 | $ | 11.07 | |||||||||||||||||||||||||||
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23.28% | 30.56% | (40.82)% | 5.09% | |||||||||||||||||||||||||||||||
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$64,012 | $53,604 | $34,253 | $78,794 | |||||||||||||||||||||||||||||||
0.77% | 0.82% | 0.82% | 0.75% | |||||||||||||||||||||||||||||||
0.77% | 0.83% | 0.82% | 0.75% | |||||||||||||||||||||||||||||||
1.19% | 1.38% | 1.68% | 1.40% | |||||||||||||||||||||||||||||||
1.19% | 1.38% | 1.68% | 1.41% | |||||||||||||||||||||||||||||||
40% | 42% | 28% | 35% |
59 |
American Beacon Small Cap Value II FundSM
Financial Highlights
(For a share outstanding throughout the period)
Y Class | Investor Class | |||||||
November 15 to April 30, 2012C |
November 15 to April 30, 2012C |
|||||||
(unaudited) | (unaudited) | |||||||
Net asset value, beginning of period |
$ | 10.00 | $ | 10.00 | ||||
|
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|
|||||
Income from investment operations: |
||||||||
Net investment income |
0.03 | 0.02 | ||||||
Net gains from securities (both realized and unrealized) |
0.88 | 0.88 | ||||||
|
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|
|||||
Total income from investment operations |
0.91 | 0.90 | ||||||
|
|
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|
|||||
Less distributions: |
||||||||
Dividends from net investment income |
(0.01) | (0.01) | ||||||
Distributions from net realized gains on securities |
- | - | ||||||
Total distributions |
(0.01) | (0.01) | ||||||
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|
|||||
Net asset value, end of period |
$ | 10.90 | $ | 10.89 | ||||
|
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|||||
Total return A |
9.10%B | 9.02%B | ||||||
|
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|
|||||
Ratios and supplemental data: |
||||||||
Net assets, end of period (in thousands) |
$1,725 | $1,641 | ||||||
Ratios to average net assets (annualized): |
||||||||
Expenses, before reimbursements |
4.47% | 4.64% | ||||||
Expenses, net of reimbursements |
1.05% | 1.20% | ||||||
Net investment (loss), before reimbursments |
(2.91)% | (3.08)% | ||||||
Net investment income, net of reimbursements |
0.52% | 0.36% | ||||||
Portfolio turnover rate |
40%B | 40%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 November 15, 2011 is the inception date of the Small Cap Value II Fund.
60 |
Disclosure Regarding the Board of Trustees Approval of
Investment Advisory Agreements
(Unaudited)
At its November 9, 2010 Board meeting, the Board of Trustees (Board or Trustees) considered the approval of investment advisory agreements (collectively, the Agreements) between American Beacon Advisors, Inc. (Manager) and each proposed new subadvisor to the Small Cap Value II Fund (the Fund), a series of the American Beacon Funds (the Trust). In preparation for the Boards consideration to approve the Agreements, the Board and its Investment Committee undertook steps to gather and consider information furnished by each proposed subadvisor and the Manager. The Board, with the assistance of independent legal counsel, requested and received certain relevant information from the Manager and each proposed new subadvisor.
In connection with the Boards consideration of each Agreement, the Trustees considered, among other materials, responses by the subadvisors to inquiries requesting:
| a description of the anticipated scope of portfolio management services that each subadvisor will provide to the Fund, including whether such services will differ from the services provided to other clients, including other registered investment companies, and any advantages or disadvantages that might accrue to the Fund due to the firms involvement in other activities; |
| a comparison of the investment performance during the last five years (or other available period) of other mutual funds and private accounts managed by each subadvisor with comparable investment objectives to the Fund with the performance of applicable peer groups and indices; |
| an analysis of compensation, including a description of the proposed subadvisory fee rate and a comparison of such fee rate with fee rates charged to other clients for which similar services are provided; |
| a description of each subadvisors principal business activities, aside from the services to be provided to the Fund; |
| a description of the personnel who will be assigned primary responsibility for managing the Fund, a summary of their education, past five years business experience and various responsibilities and a description of any recent or anticipated significant changes of senior professionals; |
| a description of the basis upon which portfolio managers are compensated, including any incentive arrangements, and a description of the oversight mechanisms used to prevent a portfolio manager whose compensation is tied to performance of a Fund from taking undue risks; |
| a copy of the firms most recent audited or unaudited financial statements, as well as Parts 1 and 2 of its Form ADV registration statement with the SEC; |
| a description of each subadvisors disaster recovery plan and the results of the last testing of such plan; |
| confirmation that the firms financial condition would not impair its ability to provide high-quality advisory services to the Fund; |
| a summary of any material pending or anticipated litigation or regulatory proceedings involving the firm or its personnel, including the results of any recent regulatory examination or independent audit; |
| a discussion of anticipated economies of scale in relation to the services to be provided to the Fund; |
| an evaluation of any other benefits to the firm or Fund as a result of their relationship, if any; |
| a discussion regarding the firms participation in soft dollar arrangements, if any, or other brokerage allocation policies with respect to Fund transactions, including the firms methodology for obtaining best execution and the use of any affiliated broker-dealers; |
| a description of any actual or potential conflicts of interest anticipated in managing Fund assets; |
| a discussion of whether the firm has identified any investment or operational matters that likely present a high risk in managing Fund assets; |
| a description of trade allocation procedures among accounts managed by the firm; |
| a discussion of whether the firm receives, with respect to the Fund, other compensation, including any payment for order flow or ECN liquidity rebates; |
| a certification by the firm regarding the reasonable design of its compliance program; |
61 |
Disclosure Regarding the Board of Trustees Approval of
Investment Advisory Agreements
(Unaudited)
| information regarding the firms code of ethics, insider trading policy and disaster recovery plan, including a description of any material changes thereto and a related certification of compliance by the firm; |
| a description of the firms affiliation with any broker-dealer; |
| a discussion of any anticipated change in the firms controlling persons; and |
| verification of the firms insurance coverage with regards to the services provided to the Fund. |
Provided below is an overview of the primary factors considered by the Board at its November 9, 2010 meeting at which the Board considered the approval of the Agreements. In determining whether to approve each Agreement, the Board considered, among other things, the following factors: (1) the nature and quality of the services provided; (2) the investment performance of each subadvisor; (3) the costs incurred by a subadvisor and the Manager in rendering their services and the resulting profits or losses; (4) the extent to which economies of scale have been taken into account in setting each fee schedule; (5) whether fee levels reflect these economies of scale for the benefit of Fund investors; (6) comparisons of services and fees with contracts entered into by the subadvisors, the Manager or their affiliates with other clients; and (7) any other benefits derived or anticipated to be derived by the subadvisors and the Manager from their relationship with the Fund.
The Board did not identify any particular information that was most relevant to its consideration to approve each Agreement, and each Trustee may have afforded different weight to the various 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 its evaluation, the Board unanimously concluded that the terms of each Agreement were reasonable and fair and that the approval of each Agreement was in the best interests of the Fund and its shareholders.
Approval of Appointment of Dean Capital Management, LLC with Respect to the Fund
At the November 9, 2010 Board meeting, the Manager proposed that the Board approve Dean Capital Management, LLC (Dean) as an investment subadvisor to the Fund. Prior to the meeting, the Board requested and reviewed information provided by Dean in connection with its consideration of Dean as an investment subadvisor to the Fund, and the Investment Committee of the Board met with representatives from Dean. A discussion of the factors relating to the Boards selection of Dean and approval of the Agreement follows.
Nature, extent and quality of the services to be provided by Dean. The Board considered information regarding Deans 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 Fund. The Board also considered Deans investment resources, infrastructure and the adequacy of its compliance program. In this regard, the Board considered Deans undertaking to make enhancements to its compliance program consistent with the recommendations by the Trusts chief compliance officer. In addition, the Board took into consideration the Managers recommendation of Dean. Dean also represented that its financial condition is adequate to provide high quality advisory services to the Fund and that its current staffing levels will be adequate 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 Dean were appropriate for the Fund in light of its investment objective, and, thus, supported a decision to approve the Agreement.
Performance of Dean. The Board evaluated Deans historical investment performance record in managing assets under the small cap value mandate. In this regard, the Board evaluated the investment performance of the Dean Small Cap Value Fund (Comparable Fund), a mutual fund managed by Dean since it commenced operations in June 2008, against the Russell 2000 Value Index (Russell Index). The Board noted Deans representation that the Comparable Fund is representative of Deans small cap value strategy. The Board considered that the Comparable Fund outperformed the Russell Index for the one- and two-year periods ended September 30, 2010. The Board also considered the performance of the Dean Small Cap Value Composite (the
62 |
Disclosure Regarding the Board of Trustees Approval of
Investment Advisory Agreements
(Unaudited)
Dean Composite) against the Russell Index. The Board noted that the returns of the Dean Composite prior to 2008 include investment performance of the portfolio managed by the lead portfolio manager of the Dean small cap value strategy, while employed at another investment advisory firm, where he was co-portfolio manager of the small cap value strategy from 2002 through 2007. For example, the Board considered that the annualized performance of the Dean Composite outperformed the Russell Index for the years 2009, 2007, 2005, 2004 and 2003 and underperformed for the years 2008 and 2006. In light of all the information provided, the Board concluded that the historical investment performance record of Dean and the lead portfolio manager supported the approval of the Agreement.
Comparisons of the amounts to be paid under the Agreement with those under contracts between Dean and its other clients. In evaluating the Agreement, the Board reviewed the proposed advisory fee rate for services to be performed by Dean on behalf of Fund. The Board considered Deans representation that the fee rate to be charged to the Fund is lower than its standard fee schedule for new clients and other sub-advised small cap value accounts. This information assisted the Board in concluding that Deans advisory fees under the 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 Deans representation that the proposed fee rate schedule for the Fund includes asset level breakpoints that reflect a reduction in fees as the assets grow, in consideration of economies of scale. In addition, the Board considered that the fees to be paid to Dean are passed through the Manager by the Fund and that the Manager would not benefit economically from the proposed fee agreement. 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 Dean 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 Dean from its relationship with the Fund, noting instead the arms-length nature of the relationship between the Manager and Dean with respect to the negotiation of the advisory fee rate on behalf the Fund.
Benefits to be derived by Dean from the relationship with the Fund. The Board considered the fall-out or ancillary benefits that may accrue to Dean as a result of the advisory relationship with the Fund. In this regard, the Board considered Deans representation that it expects to increase its assets under management, expand its list of approved brokers and consequently increase the availability of proprietary soft dollar research for use in investment management as a result of its relationship with the Fund. The Board also considered Deans representation that all soft dollar transactions will be executed in compliance with Section 28(e) of the Securities Exchange Act of 1934, as amended. Dean did not identify any other fall-out benefits that may accrue to Dean. Based on the foregoing information, the Board concluded that any fall-out benefits which may accrue to Dean will benefit the Fund and that they were not a material factor in approving the Agreement.
Approval of Appointment of Fox Asset Management LLC with Respect to the Fund
At the November 9, 2010 Board meeting, the Manager proposed that the Board approve Fox Asset Management LLC (Fox) as an investment subadvisor to the Fund. Prior to the meeting, the Board requested and reviewed information provided by Fox in connection with its consideration of Fox as an investment subadvisor to the Fund, and the Investment Committee of the Board met with representatives from Fox. A discussion of the factors relating to the Boards selection of Fox and approval of the Agreement follows.
Nature, extent and quality of the services to be provided by Fox. The Board considered information regarding Foxs 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 Fund. In this regard, the Board noted that Foxs investment committee of six members averages over 23 years of investment experience. The Board also
63 |
Disclosure Regarding the Board of Trustees Approval of
Investment Advisory Agreements
(Unaudited)
considered Foxs investment resources, infrastructure and the adequacy of its compliance program. In addition, the Board took into consideration the Managers recommendation of Fox. Fox also represented that its financial condition is adequate to provide high quality advisory services to the Fund and that its current staffing levels will be adequate 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 Fox were appropriate for the Fund in light of its investment objective, and, thus, supported a decision to approve the Agreement.
Performance of Fox. The Board evaluated the investment performance of a composite of accounts managed by Fox under the small cap value mandate (Fox Composite) against the Russell 2000 Value Index (Russell Index). The Board considered that the Fox Composite outperformed the Russell Index for the one-, three-, five- and ten-year periods ended September 30, 2010. The Board also considered the performance of two similarly managed registered investment company accounts managed by Fox against the Russell Index. For example, the Board considered that the similarly managed registered investment company accounts outperformed the Russell Index for the one-year, three-year and five-year periods ended September 30, 2010. In light of all the information provided, the Board concluded that the historical investment performance record of Fox supported the approval of the Agreement.
Comparisons of the amounts to be paid under the Agreement with those under contracts between Fox and its other clients. In evaluating the Agreement, the Board reviewed the proposed advisory fee rate for services to be performed by Fox on behalf of the Fund. The Board considered Foxs representation that it does not charge a lower advisory fee rate to other clients for which it provides similar services. This information assisted the Board in concluding that Foxs advisory fees under the 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 Foxs representation that it does not believe that it will likely experience any material economies of scale in connection with the services that it proposes to provide to the Fund. In addition, the Board considered that the fees to be paid to Fox are passed through the Manager by the Fund and that the Manager would not benefit economically from the proposed fee agreement. 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 Fox 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 Fox from its relationship with the Fund, noting instead the arms-length nature of the relationship between the Manager and Fox with respect to the negotiation of the advisory fee rate on behalf the Fund.
Benefits to be derived by Fox from the relationship with the Fund. The Board considered the fall-out or ancillary benefits that may accrue to Fox as a result of the advisory relationship with the Fund. Fox did not identify any fall-out benefits that may accrue to Fox as a result of its relationship with the Fund. Based on the foregoing information, the Board concluded fall-out benefits which may accrue to Fox were not a material factor in approving the Agreement.
Approval of Appointment of Signia Capital Management, LLC with Respect to the Fund
At the November 9, 2010 Board meeting, the Manager proposed that the Board approve Signia Capital Management, LLC (Signia) as an investment subadvisor to the Fund. Prior to the meeting, the Board requested and reviewed information provided by Signia in connection with its consideration of Signia as an investment subadvisor to the Fund, and the Investment Committee of the Board met with representatives from Signia. A discussion of the factors relating to the Boards selection of Signia and approval of the Agreement follows.
Nature, extent and quality of the services to be provided by Signia. The Board considered information regarding Signias principal business activities, its reputation, financial condition and overall capabilities to
64 |
Disclosure Regarding the Board of Trustees Approval of
Investment Advisory Agreements
(Unaudited)
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 Fund. The Board also considered Signias investment resources, infrastructure and the adequacy of its compliance program. In addition, the Board took into consideration the Managers recommendation of Signia. Signia also represented that its financial condition is adequate to provide high quality advisory services to the Fund and that its current staffing levels will be adequate 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 Signia were appropriate for the Fund in light of its investment objective, and, thus, supported a decision to approve the Agreement.
Performance of Signia. The Board evaluated Signias historical investment performance record in managing assets under the small cap value mandate. In this regard, the Board evaluated the investment performance of a composite of all discretionary fee-paying accounts invested by Signia in diversified portfolios of US small capitalization value companies (the Signia Composite) against the Russell 2000 Value Index (the Russell Index). The Board considered that the Signia Composites annualized performance outperformed the Russell Index for the years 2005, 2007 and 2009 and underperformed for the years 2006 and 2008. The Board also considered Signias rationale for the underperformance of the Signia Composite. In light of all the information provided, the Board concluded that the historical investment performance record of Signia supported the approval of the Agreement.
Comparisons of the amounts to be paid under the Agreement with those under contracts between Signia and its other clients. In evaluating the Agreement, the Board reviewed the proposed advisory fee rate for services to be performed by Signia on behalf of the Fund. The Board considered Signias representation that the fee rate to be charged to the Fund is comparable to the fee rate for its other similarly managed accounts, noting that some institutional clients may receive a lower fee due to the size and nature of services provided to such accounts. This information assisted the Board in concluding that Signias advisory fees under the 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 Signias representation that the flat fee rate proposed for the Fund does not warrant consideration of economies of scale. In addition, the Board considered that the fees to be paid to Signia are passed through the Manager by the Fund and that the Manager would not benefit economically from the proposed fee agreement. 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 Signia 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 Signia from its relationship with the Fund, noting instead the arms-length nature of the relationship between the Manager and Signia with respect to the negotiation of the advisory fee rate on behalf the Fund.
Benefits to be derived by Signia from the relationship with the Fund. The Board considered the fall-out or ancillary benefits that may accrue to Signia as a result of the advisory relationship with the Fund. In this regard, the Board considered Signias representation that it may accrue fall-out benefits as a result of its relationship with the Fund in the form of soft dollar research from broker and dealers and that any such arrangements would be in compliance with Section 28(e) of the Securities and Exchange Act of 1934, as amended. Signia did not identify any other fall-out benefits that may accrue to Signia. Based on the foregoing information, the Board concluded that any fall-out benefits which may accrue to Signia will benefit the Fund and that they were not a material factor in approving the Agreement.
65 |
Delivery of Documents
eDelivery is NOW AVAILABLE- Stop traditional mail delivery and receive your
shareholder reports and summary prospectus on-line. Sign up at
www.americanbeaconfunds.com
If you invest in the Fund through a financial institution, you may be able to receive the Funds 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 institutions name or contact your financial institution directly.
To obtain more information about the Fund:
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By E-mail: american_beacon.funds@ambeacon.com |
On the Internet: Visit our website at www.americanbeaconfunds.com | |||
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By Telephone: Institutional, Y, Investor, and Advisor Classes Call (800) 658-5811 AMR ClassSM Call (800) 345-2345
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By Mail: American Beacon Funds P.O. Box 219643 Kansas City, MO 64121-9643 | |||
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Availability of Quarterly Portfolio Schedules
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 Funds Forms N-Q are available on the SECs website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SECs Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-1520. Information regarding the operation of the SECs Public Reference Room may be obtained by calling (202) 551-8090. A complete schedule of the Funds portfolio holdings is also available on the Funds website (www.americanbeaconfunds.com) approximately twenty days after the end of each month. |
Availability of Proxy Voting Policy and Records
A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Funds Statement of Additional Information, is available free of charge on the Funds website (www.americanbeaconfunds.com) and by calling 1-800-967-9009 or by accessing the SECs website at www.sec.gov. The Funds proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Funds Forms N-PX are available on the SECs website at www.sec.gov. The Funds proxy voting record may also be obtained by calling 1-800-967-9009. |
Fund Service Providers:
American Beacon Funds, American Beacon Balanced Fund, American Beacon Large Cap Growth Fund, American Beacon Mid-Cap Value Fund, and American Beacon Small Cap Value II Fund are service marks of American Beacon Advisors, Inc.
SAR 04/12
Contents |
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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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1 | ||||||||
Market and Performance Overviews
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2-11 | |||||||||
American Beacon Schedules of Investments
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14 | |||||||||
Retirement Income and Appreciation Fund
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24 | |||||||||
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29 | |||||||||
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38 | |||||||||
Additional Information |
Back Cover |
Any opinions herein, including forecasts, reflect our judgment as of the end of the reporting period and are subject to change. Each advisors strategies and each Funds portfolio composition will change depending on economic and market conditions. This report is not a complete analysis of market conditions and therefore, should not be relied upon as investment advice. Although economic and market information has been compiled from reliable sources, American Beacon Advisors, Inc. makes no representation as to the completeness or accuracy of the statements contained herein. |
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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. An obligation rated AAA has the highest rating assigned by Standard & Poors. The obligors capacity to meet its financial commitment on the obligation is extremely strong. An obligation rated AA by Standard & Poors differs from the highest-rated obligations only to a small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong. An obligation rated A by Standard & Poors is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligors capacity to meet its financial commitment on the obligation is still strong. An obligation rated BBB by Standard & Poors exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. Obligations rated BB, B, CCC, CC, and C by Standard & Poors are regarded as having significant speculative characteristics. BB indicates the least degree of speculation and C the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions. |
American Beacon Funds | April 30, 2012 |
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Dear Shareholders,
Over the past six months, bond market returns have moved upward at a modest pace. Among other things, positive economic data in the U.S. and action in Europe to address Greeces debt helped reassure investors and the broad market through April.
The performance of our credit-exposed funds during this period continues to illustrate the American Beacon investment philosophy: that portfolios managed with a longer-term perspective tend to be better positioned for riding out the unpredictable effects of economic and geopolitical events. |
For the six-month period ended April 30, 2012:
- American Beacon High Yield Bond Fund (Institutional Class) returned 6.65%.
- American Beacon Intermediate Bond Fund (Institutional Class) returned 2.19%.
- American Beacon Retirement Income and Appreciation Fund (Y Class) returned 2.63%.
- American Beacon Short-Term Bond Fund (Institutional Class) returned 1.30%.
With ongoing uncertainty in the European Union and an upcoming Presidential election, we may again see further market gyrations in the months to come. Regardless of headlines, American Beacon remains focused on seeking opportunities and meeting market challenges to deliver the type of consistency in performance and service that our shareholders value.
Thank you for your continued investment in the American Beacon Funds. For additional information about the Funds or to access your account information, please visit our website at www.americanbeaconfunds.com.
Best Regards, | ||||||
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Gene L. Needles, Jr. |
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President |
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American Beacon Funds |
1
April 30, 2012 (Unaudited)
2 |
High Yield Bond Market Overview
April 30, 2012 (Unaudited)
3 |
American Beacon High Yield Bond FundSM
Performance Overview
April 30, 2012 (Unaudited)
4 |
American Beacon High Yield Bond FundSM
Performance Overview
April 30, 2012 (Unaudited)
5 |
American Beacon Retirement Income and Appreciation FundSM
Performance Overview
April 30, 2012 (Unaudited)
6 |
American Beacon Retirement Income and Appreciation FundSM
Performance Overview
April 30, 2012 (Unaudited)
7 |
American Beacon Intermediate Bond FundSM
Performance Overview
April 30, 2012 (Unaudited)
8 |
American Beacon Intermediate Bond FundSM
Performance Overview
April 30, 2012 (Unaudited)
9 |
American Beacon Short-Term Bond FundSM
Performance Overview
April 30, 2012 (Unaudited)
10 |
American Beacon Short-Term Bond FundSM
Performance Overview
April 30, 2012 (Unaudited)
11 |
American Beacon FundsSM
Fund Expenses
April 30, 2012 (Unaudited)
Fund Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and 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, 2011 through April 30, 2012.
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.
Institutional Class |
High Yield Bond Fund |
Intermediate Bond Fund |
Short-Term Bond Fund |
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Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||
Ending Account Value 04/30/12 |
$ | 1,066.54 | $ | 1,021.93 | $ | 1,013.34 | ||||||||||||
Expenses Paid During Period 11/1/11-4/30/12 * |
$ | 4.57 | $ | 1.56 | $ | 1.75 | ||||||||||||
Annualized Expense Ratio |
0.89 | % | 0.31 | % | 0.35 | % | ||||||||||||
Y Class |
High Yield Bond Fund |
Retirement Income and Appreciation Fund |
Intermediate Bond Fund |
Short-Term Bond Fund |
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Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value 04/30/12 |
$ | 1,061.90 | $ | 1,026.29 | $ | 1,020.19 | $ | 1,011.89 | ||||||||||
Expenses Paid During Period 11/1/11-4/30/12 * |
$ | 7.69 | $ | 4.13 | $ | 3.26 | $ | 3.15 | ||||||||||
Annualized Expense Ratio |
1.50 | % | 0.82 | % | 0.65 | % | 0.63 | % | ||||||||||
Investor Class |
High Yield Bond Fund |
Retirement Income and Appreciation Fund |
Intermediate Bond Fund |
Short-Term Bond Fund |
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Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value 04/30/12 |
$ | 1,065.28 | $ | 1,024.57 | $ | 1,019.53 | $ | 1,011.10 | ||||||||||
Expenses Paid During Period 11/1/11-4/30/12 * |
$ | 5.80 | $ | 5.49 | $ | 3.92 | $ | 3.95 | ||||||||||
Annualized Expense Ratio |
1.13 | % | 1.09 | % | 0.78 | % | 0.79 | % | ||||||||||
A Class |
High Yield Bond Fund |
Retirement Income and Appreciation Fund |
Intermediate Bond Fund |
Short-Term Bond Fund |
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Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value 04/30/12 |
$ | 1,065.32 | $ | 1,024.99 | $ | 1,019.42 | $ | 1,010.82 | ||||||||||
Expenses Paid During Period 11/1/11-4/30/12 * |
$ | 5.70 | $ | 5.74 | $ | 4.97 | $ | 4.25 | ||||||||||
Annualized Expense Ratio |
1.11 | % | 1.14 | % | 0.99 | % | 0.85 | % | ||||||||||
C Class |
High Yield Bond Fund |
Retirement Income and Appreciation Fund |
Intermediate Bond Fund |
Short-Term Bond Fund |
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Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value 04/30/12 |
$ | 1,061.47 | $ | 1,020.38 | $ | 1,014.73 | $ | 1,007.13 | ||||||||||
Expenses Paid During Period 11/1/11-4/30/12 * |
$ | 9.48 | $ | 9.85 | $ | 8.67 | $ | 7.93 | ||||||||||
Annualized Expense Ratio |
1.85 | % | 1.96 | % | 1.73 | % | 1.59 | % | ||||||||||
AMR Class |
High Yield Bond Fund |
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Beginning Account Value 11/1/11 |
$ | 1,000.00 | ||||||||||||||||
Ending Account Value 4/30/2012 |
$ | 1,068.06 | ||||||||||||||||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 3.09 | ||||||||||||||||
Annualized Expense Ratio |
0.60 | % |
12
American Beacon FundsSM
Fund Expenses
April 30, 2012 (Unaudited)
Hypothetical Example for Comparison Purposes
The following tables provide information about hypothetical account values and hypothetical expenses based on a Funds actual expense ratio and an assumed 5% per year rate of return before expenses (not the Funds 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 sales charges (loads) or 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.
Institutional Class |
High
Yield Bond Fund |
Intermediate Bond Fund |
Short-Term Bond Fund |
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Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value 04/30/12 |
$ | 1,020.44 | $ | 1,023.32 | $ | 1,023.12 | ||||||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 4.47 | $ | 1.56 | $ | 1.76 | ||||||
Annualized Expense Ratio |
0.89 | % | 0.31 | % | 0.35 | % |
Y Class |
High Yield Bond Fund |
Retirement Income and Appreciation Fund |
Intermediate Bond Fund |
Short-Term Bond Fund |
||||||||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 04/30/12 |
$ | 1,019.24 | $ | 1,019.44 | $ | 1,020.98 | $ | 1,020.93 | ||||||||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 5.67 | $ | 5.47 | $ | 3.92 | $ | 3.97 | ||||||||
Annualized Expense Ratio |
1.13 | % | 1.09 | % | 0.78 | % | 0.79 | % |
Investor Class |
High Yield Bond Fund |
Retirement Income and Appreciation Fund |
Intermediate Bond Fund |
Short-Term Bond Fund |
||||||||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 04/30/12 |
$ | 1,019.24 | $ | 1,019.44 | $ | 1,020.98 | $ | 1,020.93 | ||||||||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 5.67 | $ | 5.47 | $ | 3.92 | $ | 3.97 | ||||||||
Annualized Expense Ratio |
1.13 | % | 1.09 | % | 0.78 | % | 0.79 | % |
A Class |
High Yield Bond Fund |
Retirement Income and Appreciation Fund |
Intermediate Bond Fund |
Short-Term Bond Fund |
||||||||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 04/30/12 |
$ | 1,019.34 | $ | 1,019.19 | $ | 1,019.94 | $ | 1,020.64 | ||||||||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 5.57 | $ | 5.72 | $ | 4.97 | $ | 4.27 | ||||||||
Annualized Expense Ratio |
1.11 | % | 1.14 | % | 0.99 | % | 0.85 | % |
C Class |
High Yield Bond Fund |
Retirement Income and Appreciation Fund |
Intermediate Bond Fund |
Short-Term Bond Fund |
||||||||||||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 04/30/12 |
$ | 1,015.66 | $ | 1,015.12 | $ | 1,016.26 | $ | 1,016.96 | ||||||||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 9.27 | $ | 9.82 | $ | 8.67 | $ | 7.97 | ||||||||
Annualized Expense Ratio |
1.85 | % | 1.96 | % | 1.73 | % | 1.59 | % |
AMR Class |
High Yield Bond Fund |
|||
Beginning Account Value 11/1/11 |
$ | 1,000.00 | ||
Ending Account Value 04/30/12 |
$ | 1,021.88 | ||
Expenses Paid During Period 11/1/11-04/30/12 * |
$ | 3.02 | ||
Annualized Expense Ratio |
0.60 | % |
* | Expenses are equal to the Funds 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 (182) by days in the year (366) to reflect the half-year period. |
13
American Beacon High Yield Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Shares | Fair Value | |||||
|
(000s) | |||||
COMMON STOCKS - 0.19% |
||||||
COMMUNICATIONS- 0.01% |
||||||
Media - 0.01% |
||||||
Dex One Corp. A |
10,761 | $10 | ||||
SuperMedia, Inc.A |
1,037 | 2 | ||||
Total Communications |
12 | |||||
CONSUMER DISCRETIONARY- 0.10% |
||||||
Automobiles - 0.10% |
||||||
General Motors Co.A |
6,381 | 147 | ||||
FINANCIALS- 0.00% |
||||||
Financials - 0.00% |
||||||
Marsico Holdings LLCA B |
13,199 | 2 | ||||
INDUSTRIALS- 0.08% |
||||||
Marine - 0.02% |
||||||
Horizon Lines, Inc.A C |
273,451 | 29 | ||||
Telecommunication Services - 0.06% |
||||||
Charter Communications, IncA C |
2,759 | 52 | ||||
Charter Communications, Inc.A D |
2,416 | 37 | ||||
89 | ||||||
Total Common Stocks (Cost $1,730) |
279 | |||||
CONVERTIBLE PREFERRED STOCKS - 0.67% |
||||||
FINANCIALS- 0.67% |
||||||
Diversified Financials - 0.67% |
||||||
Bank of America Corp. |
600 | 584 | ||||
Wells Fargo & Co |
385 | 431 | ||||
Total Financials |
1015 | |||||
Total Convertible Preferred Stocks (Cost $969) |
1,015 | |||||
PREFERRED STOCKS - 0.65% |
||||||
FINANCIALS- 0.65% |
||||||
Diversified Financials - 0.01% |
||||||
Federal Home Loan Mortgage Corp.E |
10,000 | 13 | ||||
Financials - 0.64% |
||||||
GMAC Capital Trust IE |
11,600 | 278 | ||||
Zions Bancorporation |
26,300 | 689 | ||||
967 | ||||||
Total Preferred Stocks (Cost $1,210) |
980 | |||||
Par Amount | Fair Value | |||||
(000s) |
||||||
CONVERTIBLE OBLIGATIONS - 0.59% |
||||||
Financials - 0.17% |
||||||
E*Trade Financial Corp., 0.00%, Due 8/31/2019 |
$240 | 251 | ||||
Industrials - 0.42% |
||||||
Digital River, Inc., 2.00%, Due 11/1/2030 |
165 | 157 | ||||
Horizon Lines, Inc., |
373 | 257 | ||||
Powerwave Technologies, Inc., |
565 | 155 | ||||
2.75%, Due 7/15/2041F |
195 | 67 | ||||
636 | ||||||
Total Convertible Obligations (Cost $1,107) |
887 |
See accompanying notes
14
American Beacon High Yield Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount | Fair Value | |||||
(000s) | (000s) | |||||
CORPORATE OBLIGATIONS - 91.60% |
||||||
Financials - 12.88% |
||||||
ACE Cash Express, Inc., 11.00%, Due 2/1/2019F |
$400 | $366 | ||||
Alliant Holdings I, Inc., 11.00%, Due 5/1/2015F |
425 | 444 | ||||
Ally Financial, Inc., |
||||||
6.875%, Due 8/28/2012 |
300 | 304 | ||||
5.50%, Due 2/15/2017 |
120 | 123 | ||||
8.00%, Due 12/31/2018 |
200 | 218 | ||||
7.50%, Due 9/15/2020 |
600 | 669 | ||||
AMERIGROUP Corp., 7.50%, Due 11/15/2019 |
300 | 327 | ||||
Amsouth Bank, 4.85%, Due 4/1/2013 |
150 | 152 | ||||
ARD Finance S.A., 11.125%, Due 6/1/2018F G |
318 | 319 | ||||
Bank of America Corp., 8.125%, Due 12/31/2049E |
700 | 725 | ||||
Bank One Capital III, 8.75%, Due 9/1/2030 |
275 | 384 | ||||
CDW LLC, 8.00%, Due 12/15/2018B E |
140 | 153 | ||||
CIT Group, Inc., |
||||||
4.75%, Due 2/15/2015F |
300 | 306 | ||||
7.00%, Due 5/2/2017F |
1,200 | 1,202 | ||||
6.625%, Due 4/1/2018F |
100 | 109 | ||||
5.50%, Due 2/15/2019F |
425 | 437 | ||||
CKE Holdings, Inc., 10.50%, Due 3/14/2016F G |
125 | 135 | ||||
CNL Lifestyle Properties, Inc., 7.25%, Due 4/15/2019 |
250 | 228 | ||||
Discover Financial Services, 5.20%, Due 4/27/2022F |
200 | 200 | ||||
E*Trade Financial Corp., |
||||||
7.875%, Due 12/1/2015 |
235 | 240 | ||||
12.50%, Due 11/30/2017G |
990 | 1,152 | ||||
Eksportfinans ASA, 2.375%, Due 5/25/2016 |
275 | 245 | ||||
HUB International Holdings, Inc., |
||||||
9.00%, Due 12/15/2014F |
250 | 254 | ||||
10.25%, Due 6/15/2015F |
1,150 | 1,175 | ||||
International Lease Finance Corp., |
||||||
5.625%, Due 9/20/2013 |
160 | 163 | ||||
5.65%, Due 6/1/2014 |
900 | 919 | ||||
Marsico Holdings LLC, 10.625%, Due 1/15/2020B F G |
200 | 40 | ||||
MetLife, Inc., 10.75%, Due 8/1/2069 |
150 | 209 | ||||
Nara Cable Funding Ltd., 8.875%, Due 12/1/2018F |
300 | 275 | ||||
Nationwide Mutual Insurance Co., 9.375%, Due 8/15/2039F |
225 | 288 | ||||
Neuberger Berman Group LLC, 5.875%, Due 3/15/2022B F |
200 | 204 | ||||
Nuveen Investments, Inc., |
||||||
5.50%, Due 9/15/2015 |
485 | 441 | ||||
10.50%, Due 11/15/2015 |
950 | 980 | ||||
Offshore Group Investments Ltd |
||||||
11.50%, Due 8/1/2015 |
170 | 186 | ||||
11.50%, Due 8/1/2015F |
470 | 514 | ||||
Oppenheimer Holdings, Inc., 8.75%, Due 4/15/2018 |
400 | 406 | ||||
Regions Bank, 7.50%, Due 5/15/2018 |
250 | 283 | ||||
ROC Finance LLC, 12.125%, Due 9/1/2018B F |
350 | 392 | ||||
Samson Investment Co., 9.75%, Due 2/15/2020F |
730 | 762 | ||||
Sophia LP, 9.75%, Due 1/15/2019F H |
200 | 215 | ||||
Synovus Financial Corp., |
||||||
5.125%, Due 6/15/2017 |
895 | 832 | ||||
7.875%, Due 2/15/2019 |
725 | 768 | ||||
UPCB Finance VI Ltd., 6.875%, Due 1/15/2022F |
200 | 206 | ||||
UR Financing Escrow Corp., |
||||||
5.75%, Due 7/15/2018F |
65 | 67 | ||||
7.375%, Due 5/15/2020F |
125 | 131 | ||||
7.625%, Due 4/15/2022F |
395 | 418 | ||||
USPI Finance Corp., 9.00%, Due 4/1/2020F |
100 | 105 | ||||
Western Alliance Bancorp, 10.00%, Due 9/1/2015 |
220 | 238 | ||||
WMG Acquisition Corp., |
||||||
9.50%, Due 6/15/2016 |
225 | 246 |
See accompanying notes |
15
American Beacon High Yield Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount |
Fair Value | |||||
(000s) | (000s) | |||||
11.50%, Due 10/1/2018 |
$200 | $218 | ||||
| ||||||
19,373 | ||||||
| ||||||
Industrials - 71.97% |
||||||
Abengoa Finance SAU, 8.875%, Due 11/1/2017F |
400 | 382 | ||||
Academy Ltd., 9.25%, Due 8/1/2019F |
400 | 427 | ||||
Acadia Healthcare Co. Inc, 12.875%, Due 11/1/2018 |
170 | 185 | ||||
Advanced Micro Devices, Inc., 7.75%, Due 8/1/2020 |
300 | 331 | ||||
Affinia Group, Inc., 9.00%, Due 11/30/2014 |
250 | 252 | ||||
Aircastle Ltd., 9.75%, Due 8/1/2018 |
110 | 121 | ||||
Aircastle Ltd., 9.75%, Due 8/1/2018F |
180 | 198 | ||||
Alcatel-Lucent USA, Inc., 6.45%, Due 3/15/2029 |
830 | 608 | ||||
Alere, Inc., 8.625%, Due 10/1/2018 |
205 | 212 | ||||
Allison Transmission, Inc., 7.125%, Due 5/15/2019F |
595 | 623 | ||||
Alpha Natural Resources, Inc., |
||||||
6.00%, Due 6/1/2019 |
300 | 281 | ||||
6.25%, Due 6/1/2021 |
200 | 187 | ||||
AMC Entertainment, Inc., 9.75%, Due 12/1/2020 |
160 | 156 | ||||
American Petroleum Tankers Parent LLC, 10.25%, Due 5/1/2015B |
250 | 263 | ||||
Antero Resources Finance Corp., 9.375%, Due 12/1/2017 |
180 | 197 | ||||
Appleton Papers, Inc., 10.50%, Due 6/15/2015F |
200 | 209 | ||||
ArcelorMittal, 6.25%, Due 2/25/2022 |
240 | 244 | ||||
Arch Coal, Inc., |
||||||
7.00%, Due 6/15/2019F |
200 | 179 | ||||
7.25%, Due 6/15/2021F |
200 | 179 | ||||
Atkore International, Inc., 9.875%, Due 1/1/2018 |
470 | 479 | ||||
Avaya, Inc., 10.125%, Due 11/1/2015 |
350 | 347 | ||||
Avis Budget Car Rental LLC, 9.75%, Due 3/15/2020B |
385 | 424 | ||||
Aviv Healthcare Properties LP, 7.75%, Due 2/15/2019F I J |
200 | 206 | ||||
Basic Energy Services, Inc., 7.125%, Due 4/15/2016 |
350 | 355 | ||||
Belden, Inc., 7.00%, Due 3/15/2017 |
155 | 159 | ||||
Biomet, Inc., 11.625%, Due 10/15/2017 |
475 | 515 | ||||
Boart Longyear Management Property Ltd., 7.00%, Due 4/1/2021F |
190 | 199 | ||||
Boise Paper Holdings LLC, 9.00%, Due 11/1/2017B |
210 | 234 | ||||
BreitBurn Energy Partners LP, 7.875%, Due 4/15/2022F H |
300 | 303 | ||||
Bresnan Broadband Holdings LLC, 8.00%, Due 12/15/2018B F |
475 | 485 | ||||
Brightstar Corp., 9.50%, Due 12/1/2016F |
245 | 258 | ||||
Burlington Coat Factory Warehouse Corp., 10.00%, Due 2/15/2019 |
660 | 705 | ||||
Cablevision Systems Corp., 8.625%, Due 9/15/2017 |
200 | 220 | ||||
Caesars Entertainment Operating Co. Inc., |
||||||
10.75%, Due 2/1/2016 |
225 | 197 | ||||
11.25%, Due 6/1/2017 |
800 | 883 | ||||
12.75%, Due 4/15/2018 |
300 | 255 | ||||
10.00%, Due 12/15/2018 |
210 | 158 | ||||
Calumet Specialty Products Partners LP, 9.375%, Due 5/1/2019H |
300 | 313 | ||||
Carmike Cinemas, Inc., 7.375%, Due 5/15/2019F |
200 | 205 | ||||
Carrizo Oil & Gas, Inc., 8.625%, Due 10/15/2018 |
300 | 318 | ||||
Casella Waste Systems, Inc., 11.00%, Due 7/15/2014 |
175 | 188 | ||||
Catalyst Paper Corp., 11.00%, Due 12/15/2016F K |
225 | 120 | ||||
CCH II LLC, 13.50%, Due 11/30/2016B |
230 | 260 | ||||
CCM Merger, Inc., 9.125%, Due 5/1/2019F |
125 | 127 | ||||
CCO Holdings LLC, |
||||||
7.25%, Due 10/30/2017B |
200 | 218 | ||||
6.50%, Due 4/30/2021B |
300 | 314 | ||||
CDW LLC, 8.50%, Due 4/1/2019B |
600 | 642 | ||||
CEDC Finance Corp International, Inc., 9.125%, Due 12/1/2016F |
650 | 510 | ||||
Cemex SAB de CV, 9.00%, Due 1/11/2018F |
500 | 468 | ||||
Cengage Learning Acquisitions, Inc., 10.50%, Due 1/15/2015F |
425 | 339 | ||||
CenturyLink, Inc., |
||||||
6.45%, Due 6/15/2021 |
100 | 104 | ||||
5.80%, Due 3/15/2022 |
500 | 496 | ||||
Cenveo Corp., |
||||||
11.50%, Due 5/15/2017F |
460 | 406 |
See accompanying notes
16
American Beacon High Yield Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount | Fair Value | |||||
(000s) |
(000s) | |||||
8.875%, Due 2/1/2018 |
$710 | $652 | ||||
CEVA Group plc, |
||||||
11.625%, Due 10/1/2016F |
100 | 106 | ||||
8.375%, Due 12/1/2017F |
100 | 100 | ||||
11.50%, Due 4/1/2018F |
200 | 197 | ||||
CF Industries Holdings, Inc., 7.125%, Due 5/1/2020 |
285 | 341 | ||||
Chaparral Energy, Inc., |
||||||
9.875%, Due 10/1/2020 |
500 | 561 | ||||
8.25%, Due 9/1/2021 |
510 | 543 | ||||
7.625%, Due 11/15/2022F |
380 | 388 | ||||
CHC Helicopter S.A., 9.25%, Due 10/15/2020F |
500 | 496 | ||||
Chesapeake Oilfield Operating LLC, 6.625%, Due 11/15/2019B F |
300 | 282 | ||||
Chester Downs & Marina LLC, 9.25%, Due 2/1/2020B F |
375 | 395 | ||||
Chrysler Group LLC, 8.00%, Due 6/15/2019B |
440 | 455 | ||||
Cie Generale de Geophysique - Veritas, 6.50%, Due 6/1/2021 |
400 | 412 | ||||
Cincinnati Bell, Inc., |
||||||
8.25%, Due 10/15/2017 |
100 | 104 | ||||
8.75%, Due 3/15/2018 |
300 | 281 | ||||
Clear Channel Communications, Inc., |
||||||
10.75%, Due 8/1/2016 |
225 | 166 | ||||
9.00%, Due 3/1/2021 |
600 | 543 | ||||
Clear Channel Worldwide Holdings, Inc., |
||||||
9.25%, Due 12/15/2017 |
350 | 382 | ||||
7.625%, Due 3/15/2020F |
740 | 726 | ||||
Clearwire Communications LLC, |
||||||
12.00%, Due 12/1/2015B F |
240 | 221 | ||||
12.00%, Due 12/1/2017B F |
320 | 238 | ||||
ClubCorp Club Operations, Inc., 10.00%, Due 12/1/2018 |
400 | 422 | ||||
Coleman Cable, Inc., 9.00%, Due 2/15/2018 |
300 | 317 | ||||
Colt Defense LLC, 8.75%, Due 11/15/2017B |
245 | 157 | ||||
Columbus International, Inc., 11.50%, Due 11/20/2014F |
100 | 109 | ||||
CommScope, Inc., 8.25%, Due 1/15/2019F |
400 | 427 | ||||
Community Health Systems, Inc., |
||||||
8.875%, Due 7/15/2015 |
148 | 153 | ||||
8.00%, Due 11/15/2019F |
300 | 317 | ||||
Comstock Resources, Inc., 7.75%, Due 4/1/2019 |
310 | 288 | ||||
Concho Resources, Inc., |
||||||
6.50%, Due 1/15/2022 |
200 | 211 | ||||
5.50%, Due 10/1/2022 |
190 | 190 | ||||
Consol Energy, Inc., |
||||||
8.00%, Due 4/1/2017 |
200 | 211 | ||||
8.25%, Due 4/1/2020 |
300 | 315 | ||||
Continental Resources, Inc., 5.00%, Due 9/15/2022F |
240 | 244 | ||||
CRC Health Corp., 10.75%, Due 2/1/2016 |
400 | 368 | ||||
Cricket Communications, Inc., 7.75%, Due 10/15/2020 |
1,360 | 1,274 | ||||
Crown Media Holdings, Inc., 10.50%, Due 7/15/2019 |
320 | 347 | ||||
CSC Holdings LLC, 6.75%, Due 11/15/2021B F |
300 | 311 | ||||
Cumulus Media Holdings, Inc., 7.75%, Due 5/1/2019 |
390 | 369 | ||||
Dave & Busters, Inc., 11.00%, Due 6/1/2018 |
450 | 486 | ||||
Dean Foods Co., 9.75%, Due 12/15/2018 |
300 | 335 | ||||
Del Monte Corp., 7.625%, Due 2/15/2019 |
500 | 505 | ||||
Digicel Group Ltd., 9.125%, Due 1/15/2015F |
225 | 226 | ||||
DISH DBS Corp., 7.125%, Due 2/1/2016 |
700 | 774 | ||||
DJO Finance LLC., |
||||||
8.75%, Due 3/15/2018B F |
425 | 432 | ||||
7.75%, Due 4/15/2018B |
450 | 366 | ||||
DynCorp International, Inc., 10.375%, Due 7/1/2017 |
500 | 429 | ||||
eAccess Ltd., 8.25%, Due 4/1/2018F |
300 | 287 | ||||
Eagle Rock Energy Partners LP, 8.375%, Due 6/1/2019H |
300 | 311 | ||||
Earthlink, Inc., 8.875%, Due 5/15/2019 |
420 | 412 | ||||
Eileme 2 AB, 11.625%, Due 1/31/2020F |
200 | 206 | ||||
Emergency Medical Services Corp., 8.125%, Due 6/1/2019 |
400 | 410 | ||||
Endo Pharmaceuticals Holdings, Inc., 7.00%, Due 7/15/2019 |
300 | 320 |
See accompanying notes
17
American Beacon High Yield Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount | Fair Value | |||||
(000s) |
(000s) | |||||
Energy Partners Ltd., 8.25%, Due 2/15/2018 |
$470 | $476 | ||||
Energy XXI Gulf Coast, Inc., 9.25%, Due 12/15/2017 |
1,015 | 1,113 | ||||
EnergySolutions Inc. LLC, 10.75%, Due 8/15/2018B |
425 | 441 | ||||
Entercom Radio LLC, 10.50%, Due 12/1/2019B |
210 | 229 | ||||
Equinox Holdings, Inc., 9.50%, Due 2/1/2016F |
425 | 456 | ||||
Euramax International, Inc., 9.50%, Due 4/1/2016 |
200 | 184 | ||||
EVERTEC, Inc., 11.00%, Due 10/1/2018 |
425 | 461 | ||||
ExamWorks Group, Inc., 9.00%, Due 7/15/2019F |
200 | 203 | ||||
Exopack Holding Corp., 10.00%, Due 6/1/2018 |
300 | 312 | ||||
Expro Finance Luxembourg SCA, 8.50%, Due 12/15/2016F |
400 | 388 | ||||
FAGE Dairy Industry S.A., 9.875%, Due 2/1/2020F |
255 | 238 | ||||
Felcor Lodging LP, 10.00%, Due 10/1/2014H |
165 | 190 | ||||
FGI Operating Co. LLC, 7.875%, Due 5/1/2020B F |
225 | 232 | ||||
First Data Corp., |
||||||
10.55%, Due 9/24/2015 |
400 | 407 | ||||
8.25%, Due 1/15/2021F |
600 | 591 | ||||
12.625%, Due 1/15/2021 |
250 | 251 | ||||
Florida East Coast Railway Corp., 8.125%, Due 2/1/2017 |
300 | 308 | ||||
FMG Resources August 2006 Property Ltd., |
||||||
6.00%, Due 4/1/2017F |
75 | 76 | ||||
6.875%, Due 2/1/2018F |
500 | 514 | ||||
8.25%, Due 11/1/2019F |
100 | 108 | ||||
6.875%, Due 4/1/2022F |
90 | 91 | ||||
Fontainebleau Las Vegas Holdings LLC, 10.25%, Due 6/15/2015B E F K |
1,800 | 1 | ||||
Forbes Energy Services Ltd., 9.00%, Due 6/15/2019 |
285 | 276 | ||||
Ford Motor Credit Co. LLC, |
||||||
6.625%, Due 8/15/2017B |
650 | 746 | ||||
8.125%, Due 1/15/2020B |
400 | 507 | ||||
5.875%, Due 8/2/2021B |
200 | 226 | ||||
Freescale Semiconductor, Inc., |
||||||
10.125%, Due 3/15/2018F |
300 | 335 | ||||
9.25%, Due 4/15/2018F |
100 | 110 | ||||
8.05%, Due 2/1/2020 |
200 | 202 | ||||
10.75%, Due 8/1/2020 |
200 | 222 | ||||
Frontier Communications Corp., |
||||||
8.25%, Due 4/15/2017 |
200 | 216 | ||||
8.50%, Due 4/15/2020 |
400 | 416 | ||||
8.75%, Due 4/15/2022 |
400 | 420 | ||||
Gaylord Entertainment Co., 6.75%, Due 11/15/2014 |
190 | 191 | ||||
GCI, Inc., 8.625%, Due 11/15/2019 |
455 | 501 | ||||
General Motors Corp., 8.375%, Due 7/15/2049K |
1,570 | 29 | ||||
Geo Group, Inc., 6.625%, Due 2/15/2021 |
300 | 317 | ||||
Goodrich Petroleum Corp., 8.875%, Due 3/15/2019 |
720 | 696 | ||||
Goodyear Tire & Rubber Co., 8.25%, Due 8/15/2020 |
300 | 317 | ||||
Gray Television, Inc., 10.50%, Due 6/29/2015 |
365 | 383 | ||||
Grifols, Inc., 8.25%, Due 2/1/2018 |
400 | 429 | ||||
GWR Operating Partnership LLP, 10.875%, Due 4/1/2017J |
400 | 450 | ||||
Hanger Orthopedic Group, Inc., 7.125%, Due 11/15/2018 |
170 | 177 | ||||
HCA, Inc., |
||||||
6.25%, Due 2/15/2013 |
400 | 410 | ||||
9.00%, Due 12/15/2014 |
250 | 275 | ||||
7.19%, Due 11/15/2015 |
300 | 310 | ||||
7.50%, Due 2/15/2022 |
400 | 431 | ||||
5.875%, Due 3/15/2022 |
200 | 203 | ||||
Health Management Associates, Inc., 7.375%, Due 1/15/2020F |
300 | 312 | ||||
Helix Energy Solutions Group, Inc., 9.50%, Due 1/15/2016F |
293 | 308 | ||||
Hercules Offshore, Inc., |
||||||
7.125%, Due 4/1/2017F |
185 | 185 | ||||
10.50%, Due 10/15/2017F |
275 | 287 | ||||
10.25%, Due 4/1/2019F |
580 | 577 | ||||
Hertz Corp. |
||||||
6.75%, Due 4/15/2019 |
400 | 414 | ||||
6.75%, Due 4/15/2019F |
100 | 104 |
See accompanying notes
18
American Beacon High Yield Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount | Fair Value | |||||
(000s) |
(000s) | |||||
Hilcorp Energy I LP, 8.00%, Due 2/15/2020F H |
$200 | $219 | ||||
Horizon Lines LLC, |
||||||
11.00%, Due 10/15/2016B F |
240 | 232 | ||||
13.00%, Due 10/15/2016B G |
372 | 347 | ||||
HSN, Inc., 11.25%, Due 8/1/2016 |
250 | 270 | ||||
Hughes Satellite Systems Corp., 7.625%, Due 6/15/2021 |
450 | 488 | ||||
Hyva Global BV, 8.625%, Due 3/24/2016F |
200 | 169 | ||||
Ineos Finance plc, |
||||||
9.00%, Due 5/15/2015F |
100 | 107 | ||||
8.375%, Due 2/15/2019F |
550 | 590 | ||||
Ineos Group Holdings Ltd., 8.50%, Due 2/15/2016F |
300 | 293 | ||||
Integra Telecom Holdings, Inc., 10.75%, Due 4/15/2016F |
390 | 370 | ||||
Intelsat Jackson Holdings S.A., |
||||||
11.25%, Due 6/15/2016 |
200 | 210 | ||||
7.25%, Due 10/15/2020F |
200 | 209 | ||||
7.500%, Due 4/1/2021 |
500 | 525 | ||||
Intelsat Luxembourg S.A, 11.50%, Due 2/4/2017F G |
300 | 310 | ||||
Intelsat Luxembourg S.A., |
||||||
11.25%, Due 2/4/2017 |
100 | 104 | ||||
11.50%, Due 2/4/2017 |
175 | 182 | ||||
International Automotive Components Group SL, 9.125%, Due 6/1/2018F |
200 | 184 | ||||
inVentiv Health, Inc., 10.00%, Due 8/15/2018F |
655 | 585 | ||||
iPayment, Inc., 10.25%, Due 5/15/2018 |
250 | 230 | ||||
Isle of Capri Casinos, Inc., |
||||||
7.00%, Due 3/1/2014 |
520 | 519 | ||||
7.75%, Due 3/15/2019 |
150 | 155 | ||||
ITC Deltacom, Inc., 10.50%, Due 4/1/2016 |
360 | 385 | ||||
Jabil Circuit, Inc., 8.25%, Due 3/15/2018 |
275 | 320 | ||||
Jaguar Holding Co. II, 9.50%, Due 12/1/2019F |
100 | 110 | ||||
Jarden Corp., 7.50%, Due 5/1/2017 |
165 | 184 | ||||
JBS USA LLC, |
||||||
11.625%, Due 5/1/2014B |
200 | 230 | ||||
8.25%, Due 2/1/2020B F |
650 | 657 | ||||
Key Energy Services, Inc., 6.75%, Due 3/1/2021 |
250 | 258 | ||||
Kinove German Bondco GmbH, 9.625%, Due 6/15/2018F |
200 | 208 | ||||
Kodiak Oil & Gas Corp., 8.125%, Due 12/1/2019F |
275 | 292 | ||||
Landrys, Inc., 9.375%, Due 5/1/2020F |
275 | 280 | ||||
Lawson Software, Inc., 9.375%, Due 4/1/2019F |
350 | 366 | ||||
Level 3 Financing, Inc., |
||||||
4.506%, Due 2/15/2015E |
420 | 406 | ||||
10.00%, Due 2/1/2018 |
425 | 465 | ||||
8.625%, Due 7/15/2020F |
380 | 398 | ||||
Libbey Glass, Inc., 10.00%, Due 2/15/2015 |
320 | 341 | ||||
Liberty Tire Recycling, 11.00%, Due 10/1/2016F |
525 | 495 | ||||
LIN Television Corp., 8.375%, Due 4/15/2018 |
310 | 322 | ||||
Linn Energy LLC, |
||||||
6.50%, Due 5/15/2019B F |
355 | 357 | ||||
8.625%, Due 4/15/2020B |
900 | 982 | ||||
7.75%, Due 2/1/2021B L |
230 | 243 | ||||
Lions Gate Entertainment, Inc., 10.25%, Due 11/1/2016F |
155 | 171 | ||||
LyondellBasell Industries N.V., 5.00%, Due 4/15/2019F |
245 | 253 | ||||
M/I Homes, Inc., 8.625%, Due 11/15/2018 |
100 | 100 | ||||
MacDermid, Inc., 9.50%, Due 4/15/2017F |
810 | 843 | ||||
Mandalay Resort Group, 7.625%, Due 7/15/2013 |
500 | 512 | ||||
Manitowoc Co. Inc, 8.50%, Due 11/1/2020 |
150 | 167 | ||||
Marina District Finance Co. Inc, |
||||||
9.50%, Due 10/15/2015 |
460 | 447 | ||||
9.875%, Due 8/15/2018 |
170 | 163 | ||||
Mcron Finance Sub LLC, 8.375%, Due 5/15/2019B F |
135 | 138 | ||||
MedAssets, Inc., 8.00%, Due 11/15/2018 |
400 | 418 | ||||
Media General, Inc., 11.75%, Due 2/15/2017 |
200 | 191 | ||||
MEMC Electronic Materials, Inc., 7.75%, Due 4/1/2019 |
225 | 179 | ||||
MGM Resorts International, |
See accompanying notes
19
American Beacon High Yield Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount | Fair Value | |||||
(000s) | (000s) | |||||
6.625%, Due 7/15/2015 |
$900 | $935 | ||||
10.00%, Due 11/1/2016 |
275 | 309 | ||||
8.625%, Due 2/1/2019F |
105 | 114 | ||||
Michaels Stores, Inc., 7.75%, Due 11/1/2018 |
300 | 316 | ||||
Midwest Vanadium Property Ltd., 11.50%, Due 2/15/2018F |
200 | 134 | ||||
Monitronics International, Inc., 9.125%, Due 4/1/2020F |
205 | 205 | ||||
Mylan, Inc., 7.875%, Due 7/15/2020F |
100 | 112 | ||||
National CineMedia LLC, 7.875%, Due 7/15/2021B |
100 | 108 | ||||
NBTY, Inc., 9.00%, Due 10/1/2018 |
200 | 221 | ||||
NCL Corp Ltd., |
||||||
11.75%, Due 11/15/2016 |
350 | 407 | ||||
9.50%, Due 11/15/2018 |
100 | 111 | ||||
NewPage Corp., 11.375%, Due 12/31/2014 |
300 | 204 | ||||
Nexstar Broadcasting Inc., 8.875%, Due 4/15/2017 |
150 | 160 | ||||
NII Capital Corp., 7.625%, Due 4/1/2021 |
540 | 502 | ||||
Nord Anglia Education UK Holdings plc, 10.25%, Due 4/1/2017F |
200 | 206 | ||||
Norske Skogindustrier ASA, 6.125%, Due 10/15/2015F |
750 | 529 | ||||
Novelis, Inc., 8.75%, Due 12/15/2020 |
400 | 441 | ||||
NPC International Inc, 10.50%, Due 1/15/2020F |
250 | 275 | ||||
OnCure Holdings, Inc., 11.75%, Due 5/15/2017 |
285 | 183 | ||||
PBF Holding Co. LLC, 8.25%, Due 2/15/2020B F |
250 | 259 | ||||
Peabody Energy Corp., |
||||||
7.375%, Due 11/1/2016 |
600 | 664 | ||||
6.00%, Due 11/15/2018F |
250 | 254 | ||||
Petco Animal Supplies, Inc., 9.25%, Due 12/1/2018F |
590 | 649 | ||||
Petrohawk Energy Corp., 10.50%, Due 8/1/2014 |
200 | 222 | ||||
Petroquest Energy, Inc., 10.00%, Due 9/1/2017 |
250 | 258 | ||||
Pinnacle Entertainment, Inc., |
||||||
8.625%, Due 8/1/2017 |
170 | 186 | ||||
7.75%, Due 4/1/2022 |
185 | 196 | ||||
Pinnacle Foods Finance LLC, 9.25%, Due 4/1/2015B |
525 | 538 | ||||
Plains Exploration & Production Co., 6.125%, Due 6/15/2019 |
300 | 303 | ||||
Prestige Brands, Inc., 8.25%, Due 4/1/2018 |
605 | 661 | ||||
QEP Resources, Inc., 5.375%, Due 10/1/2022 |
200 | 200 | ||||
Quality Distribution LLC, 9.875%, Due 11/1/2018B |
250 | 274 | ||||
Quicksilver Resources, Inc., 9.125%, Due 8/15/2019 |
400 | 386 | ||||
Quiksilver, Inc., 6.875%, Due 4/15/2015 |
405 | 410 | ||||
QVC, Inc., 7.50%, Due 10/1/2019F |
195 | 215 | ||||
Qwest Corp., 8.375%, Due 5/1/2016 |
145 | 174 | ||||
Radio One, Inc., 6.00%, Due 5/24/2016G |
202 | 157 | ||||
Radnet Management, Inc., 10.375%, Due 4/1/2018 |
350 | 347 | ||||
RailAmerica, Inc., 9.25%, Due 7/1/2017 |
19 | 20 | ||||
Regal Cinemas Corp., 8.625%, Due 7/15/2019 |
275 | 303 | ||||
Reliance Intermediate Holdings LP, 9.50%, Due 12/15/2019F H |
450 | 500 | ||||
Resolute Energy Corp., 8.50%, Due 5/1/2020F |
300 | 302 | ||||
Revlon Consumer Products Corp., 9.75%, Due 11/15/2015 |
375 | 405 | ||||
Rexel S.A., 6.125%, Due 12/15/2019F |
200 | 203 | ||||
Reynolds Group Issuer Inc., |
||||||
9.25%, Due 5/15/2018E F |
900 | 908 | ||||
9.00%, Due 4/15/2019F |
385 | 387 | ||||
9.875%, Due 8/15/2019F |
200 | 209 | ||||
6.875%, Due 2/15/2021F |
300 | 309 | ||||
8.50%, Due 2/15/2021F |
200 | 193 | ||||
Rite Aid Corp., 9.75%, Due 6/12/2016 |
775 | 861 | ||||
Rosetta Resources, Inc., 9.50%, Due 4/15/2018 |
250 | 274 | ||||
Sabine Pass LNG LP, |
||||||
7.25%, Due 11/30/2013H |
325 | 340 | ||||
7.50%, Due 11/30/2016H |
300 | 322 | ||||
Salem Communications Corp., 9.625%, Due 12/15/2016 |
113 | 125 | ||||
SandRidge Energy, Inc., 8.00%, Due 6/1/2018F |
800 | 829 | ||||
Schaeffler Finance BV, 8.50%, Due 2/15/2019F |
200 | 215 | ||||
Seagate HDD Cayman, 7.75%, Due 12/15/2018 |
250 | 276 | ||||
Sealed Air Corp., |
See accompanying notes
20
American Beacon High Yield Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount | Fair Value | |||||
(000s) |
(000s) | |||||
8.125%, Due 9/15/2019F |
$100 | $112 | ||||
8.375%, Due 9/15/2021F |
350 | 397 | ||||
Select Medical Corp., 7.625%, Due 2/1/2015 |
200 | 202 | ||||
Select Medical Holdings Corp., 1.00%, Due 9/15/2015E |
205 | 194 | ||||
Shea Homes LP, 8.625%, Due 5/15/2019F H |
200 | 209 | ||||
Shingle Springs Tribal Gaming Authority, 9.375%, Due 6/15/2015F |
200 | 146 | ||||
Simmons Foods, Inc., 10.50%, Due 11/1/2017F |
350 | 322 | ||||
Sinclair Television Group, Inc., 9.25%, Due 11/1/2017F |
250 | 279 | ||||
Sirius XM Radio, Inc., 8.75%, Due 4/1/2015F |
175 | 199 | ||||
Sitel LLC, |
||||||
11.00%, Due 8/1/2017F |
100 | 98 | ||||
11.50%, Due 4/1/2018B |
200 | 140 | ||||
Smurfit Kappa Treasury Funding Ltd., 7.50%, Due 11/20/2025 |
550 | 550 | ||||
Spectrum Brands Holdings, Inc., 9.50%, Due 6/15/2018F |
205 | 232 | ||||
Sprint Capital Corp., 8.75%, Due 3/15/2032 |
510 | 432 | ||||
Sprint Nextel Corp., |
||||||
9.125%, Due 3/1/2017F |
115 | 114 | ||||
8.375%, Due 8/15/2017 |
1,000 | 962 | ||||
9.00%, Due 11/15/2018F |
500 | 551 | ||||
7.00%, Due 3/1/2020F |
100 | 102 | ||||
11.50%, Due 11/15/2021F |
650 | 690 | ||||
Station Casinos, Inc., 6.875%, Due 3/1/2016K |
500 | - | ||||
SunGard Data Systems, Inc., |
||||||
10.25%, Due 8/15/2015 |
100 | 104 | ||||
7.625%, Due 11/15/2020 |
500 | 533 | ||||
Swift Services Holdings, Inc., 10.00%, Due 11/15/2018 |
60 | 66 | ||||
Syniverse Holdings, Inc., 9.125%, Due 1/15/2019 |
420 | 466 | ||||
Taminco Global Chemical Corp., 9.75%, Due 3/31/2020F |
460 | 481 | ||||
Taylor Morrison Communities Inc., 7.75%, Due 4/15/2020F |
370 | 381 | ||||
Telesat Canada, |
||||||
6.00%, Due 5/15/2017F |
150 | 150 | ||||
12.50%, Due 11/1/2017B |
425 | 476 | ||||
Ticketmaster Entertainment LLC, 10.75%, Due 8/1/2016B |
300 | 322 | ||||
Titan International, Inc., 7.875%, Due 10/1/2017 |
460 | 488 | ||||
Tomkins LLC, 9.00%, Due 10/1/2018B |
300 | 334 | ||||
Tower Automotive Holdings USA LLC, 10.625%, Due 9/1/2017B F |
250 | 268 | ||||
TransUnion LLC, 11.375%, Due 6/15/2018B |
100 | 119 | ||||
Trimas Corp., 9.75%, Due 12/15/2017 |
170 | 189 | ||||
tw telecom holdings, Inc., 8.00%, Due 3/1/2018 |
325 | 356 | ||||
UCI International, Inc., 8.625%, Due 2/15/2019 |
200 | 205 | ||||
United Rentals North America, Inc., 8.375%, Due 9/15/2020 |
400 | 421 | ||||
Unitymedia Hessen GmbH & Co. KG, 7.50%, Due 3/15/2019F |
175 | 175 | ||||
Univision Communications, Inc., |
||||||
7.875%, Due 11/1/2020F |
400 | 417 | ||||
8.50%, Due 5/15/2021F |
400 | 395 | ||||
Vanguard Health Holding Co. II LLC, 7.75%, Due 2/1/2019B F |
275 | 276 | ||||
Vedanta Resources plc, 8.25%, Due 6/7/2021F |
240 | 228 | ||||
Verso Paper Holdings LLC, 11.75%, Due 1/15/2019B F |
300 | 322 | ||||
Visant Corp., 10.00%, Due 10/1/2017 |
740 | 701 | ||||
Viskase Cos., Inc., 9.875%, Due 1/15/2018F |
150 | 158 | ||||
W&T Offshore, Inc., 8.50%, Due 6/15/2019 |
395 | 417 | ||||
Warner Chilcott Co. LLC, 7.75%, Due 9/15/2018B |
200 | 219 | ||||
West Corp., 7.875%, Due 1/15/2019 |
500 | 533 | ||||
Western Refining, Inc., 11.25%, Due 6/15/2017F |
300 | 341 | ||||
Wind Acquisition Finance S.A., |
||||||
11.75%, Due 7/15/2017F |
700 | 687 | ||||
7.25%, Due 2/15/2018F |
325 | 309 | ||||
Wind Acquisition Holdings Finance S.A., 12.25%, Due 7/15/2017F G |
256 | 223 | ||||
Windstream Corp., 7.50%, Due 6/1/2022 |
200 | 210 | ||||
WPX Energy, Inc., 6.00%, Due 1/15/2022F |
245 | 238 | ||||
Wynn Las Vegas LLC, 5.375%, Due 3/15/2022B F |
265 | 260 | ||||
Xerium Technologies, Inc., 8.875%, Due 6/15/2018 |
315 | 263 | ||||
XM Satellite Radio, Inc., 13.00%, Due 8/1/2014F |
250 | 283 |
See accompanying notes
21
American Beacon High Yield Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount |
Fair Value | |||||
(000s) | (000s) | |||||
Yonkers Racing Corp., 11.375%, Due 7/15/2016F |
$275 | $296 | ||||
108,244 | ||||||
Utilities - 6.75% |
||||||
AES Corp., 9.75%, Due 4/15/2016 |
360 | 425 | ||||
Atlas Pipeline Partners LP, 8.75%, Due 6/15/2018H |
400 | 431 | ||||
Calpine Corp., |
||||||
7.875%, Due 7/31/2020F |
100 | 109 | ||||
7.50%, Due 2/15/2021F |
700 | 748 | ||||
Chesapeake Energy Corp., |
||||||
6.625%, Due 8/15/2020 |
835 | 813 | ||||
6.875%, Due 11/15/2020 |
220 | 215 | ||||
6.125%, Due 2/15/2021 |
295 | 279 | ||||
Chesapeake Midstream Partners LP., 6.125%, Due 7/15/2022H |
425 | 409 | ||||
Clayton Williams Energy, Inc., 7.75%, Due 4/1/2019 |
300 | 298 | ||||
Crosstex Energy LP, 8.875%, Due 2/15/2018H |
400 | 429 | ||||
Elwood Energy LLC, 8.159%, Due 7/5/2026B |
562 | 571 | ||||
Energy Future Holdings Corp., 5.55%, Due 11/15/2014 |
230 | 164 | ||||
Energy Future Intermediate Holding Co. LLC, 10.00%, Due 12/1/2020B |
430 | 475 | ||||
Energy Transfer Equity LP, 7.50%, Due 10/15/2020H |
400 | 443 | ||||
Enterprise Products Operating LLC, 7.034%, Due 1/15/2068B E |
300 | 322 | ||||
Genesis Energy LP, 7.875%, Due 12/15/2018H |
200 | 206 | ||||
GenOn Energy, Inc., 7.625%, Due 6/15/2014 |
200 | 204 | ||||
Holly Energy Partners LP, 6.50%, Due 3/1/2020F H |
225 | 227 | ||||
Intergen N.V., 9.00%, Due 6/30/2017F |
400 | 411 | ||||
Martin Midstream Partners LP, 8.875%, Due 4/1/2018H |
437 | 446 | ||||
NRG Energy, Inc., |
||||||
7.625%, Due 5/15/2019 |
340 | 335 | ||||
8.25%, Due 9/1/2020 |
185 | 185 | ||||
7.875%, Due 5/15/2021 |
385 | 376 | ||||
Regency Energy Partners LP, |
||||||
9.375%, Due 6/1/2016H |
146 | 160 | ||||
6.50%, Due 7/15/2021H |
225 | 239 | ||||
Rockies Express Pipeline LLC, 6.85%, Due 7/15/2018B F |
60 | 59 | ||||
SandRidge Energy, Inc., 9.875%, Due 5/15/2016 |
400 | 444 | ||||
Targa Resources Partners LP, 6.875%, Due 2/1/2021H |
200 | 209 | ||||
Texas Competitive Electric Holdings Co. LLC, |
||||||
11.50%, Due 10/1/2020B F |
700 | 434 | ||||
15.00%, Due 4/1/2021B |
300 | 86 | ||||
10,152 | ||||||
Total Corporate Obligations (Cost $135,742) |
137,769 | |||||
SOVEREIGN OBLIGATION - 0.14% (Cost $214) |
||||||
Argentine Republic Government International Bond, 8.28%, Due 12/31/2033 |
300 | 214 | ||||
Shares |
||||||
SHORT-TERM INVESTMENTS - 3.60% (Cost $5,409) |
||||||
JPMorgan U.S. Government Money Market Fund |
5,408,556 | 5,409 | ||||
TOTAL INVESTMENTS - 97.44% (Cost 146,381) |
146,553 | |||||
OTHER ASSETS, NET OF LIABILITIES - 2.56% |
3,855 | |||||
TOTAL NET ASSETS - 100.00% |
$150,407 | |||||
|
||||||
Percentages are stated as a percent of net assets. |
A Non-income producing security.
B Limited Liability Company.
C Call.
D Put.
See accompanying notes
22
American Beacon High Yield Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
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.
F 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 $51,448 or 34.20% of net assets. The Fund has no right to demand registration of these securities.
G Is Payment in Kind.
H Limited Partnership.
I REIT - Real Estate Investment Trust.
J Limited Liability Partnership.
K In Default.
L Non-voting participating shares.
See accompanying notes
23
American Beacon Retirement Income and Appreciation FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
24
American Beacon Retirement Income and Appreciation FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes |
25
American Beacon Retirement Income and Appreciation FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
26
American Beacon Retirement Income and Appreciation FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
27
American Beacon Retirement Income and Appreciation FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
See accompanying notes
28
American Beacon Intermediate Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount |
Fair Value | |||||
(000s) |
(000s) | |||||
CORPORATE OBLIGATIONS - 45.05% | ||||||
Financials - 20.43% |
||||||
AEGON Funding Co. LLC, 5.75%, Due 12/15/2020A |
$400 | $432 | ||||
American Express Co., 8.15%, Due 3/19/2038 |
325 | 497 | ||||
American Express Credit Corp., 5.125%, Due 8/25/2014 |
1,540 | 1,671 | ||||
American International Group, Inc., |
||||||
4.25%, Due 9/15/2014 |
600 | 626 | ||||
6.40%, Due 12/15/2020 |
800 | 919 | ||||
Bank of America Corp., |
||||||
6.50%, Due 8/1/2016 |
845 | 924 | ||||
7.80%, Due 9/15/2016 |
700 | 766 | ||||
7.625%, Due 6/1/2019 |
1,200 | 1,383 | ||||
5.70%, Due 1/24/2022 |
2,000 | 2,100 | ||||
Bank of New York Mellon Corp., |
||||||
1.50%, Due 1/31/2014 |
475 | 480 | ||||
4.30%, Due 5/15/2014 |
815 | 872 | ||||
Bank One Corp., 4.90%, Due 4/30/2015 |
500 | 538 | ||||
Barclays Bank plc, |
||||||
3.90%, Due 4/7/2015 |
380 | 395 | ||||
6.75%, Due 5/22/2019 |
650 | 748 | ||||
Bear Stearns Cos. LLC, 7.25%, Due 2/1/2018A |
2,145 | 2,609 | ||||
BNP Paribas S.A., 3.60%, Due 2/23/2016 |
400 | 402 | ||||
Canadian Imperial Bank of Commerce, 1.45%, Due 9/13/2013 |
1,285 | 1,300 | ||||
Capital One Financial Corp., 2.125%, Due 7/15/2014 |
845 | 850 | ||||
Citigroup, Inc., |
||||||
1.398%, Due 4/1/2014B |
400 | 393 | ||||
0.811%, Due 11/5/2014B |
380 | 363 | ||||
6.01%, Due 1/15/2015 |
570 | 617 | ||||
4.45%, Due 1/10/2017 |
1,000 | 1,045 | ||||
6.125%, Due 11/21/2017 |
980 | 1,087 | ||||
8.50%, Due 5/22/2019 |
1,650 | 2,050 | ||||
5.875%, Due 1/30/2042 |
500 | 532 | ||||
CNA Financial Corp., 7.35%, Due 11/15/2019 |
210 | 249 | ||||
Credit Suisse, 5.30%, Due 8/13/2019 |
425 | 474 | ||||
Credit Suisse USA, Inc., 7.125%, Due 7/15/2032 |
500 | 632 | ||||
Danske Bank A/S, 1.517%, Due 4/14/2014B C |
780 | 758 | ||||
Deutsche Bank AG, 3.875%, Due 8/18/2014 |
400 | 419 | ||||
Fifth Third Bancorp, 3.625%, Due 1/25/2016 |
400 | 424 | ||||
General Electric Capital Corp., |
||||||
0.669%, Due 1/8/2016B |
1,300 | 1,255 | ||||
5.625%, Due 5/1/2018 |
1,835 | 2,127 | ||||
6.00%, Due 8/7/2019 |
350 | 414 | ||||
5.50%, Due 1/8/2020 |
800 | 915 | ||||
5.30%, Due 2/11/2021 |
240 | 264 | ||||
4.65%, Due 10/17/2021 |
3,000 | 3,262 | ||||
5.875%, Due 1/14/2038 |
745 | 833 | ||||
Goldman Sachs Group, Inc., |
||||||
5.35%, Due 1/15/2016 |
800 | 851 | ||||
6.25%, Due 9/1/2017 |
800 | 870 | ||||
5.95%, Due 1/18/2018 |
660 | 712 | ||||
6.00%, Due 6/15/2020 |
490 | 524 | ||||
5.75%, Due 1/24/2022 |
500 | 522 | ||||
HCP, Inc., 5.375%, Due 2/1/2021 |
500 | 551 | ||||
Health Care REIT, Inc., |
||||||
3.625%, Due 3/15/2016D |
565 | 578 | ||||
5.25%, Due 1/15/2022D |
345 | 365 | ||||
HSBC Finance Corp., 0.717%, Due 1/15/2014B |
1,250 | 1,218 | ||||
ING Bank N.V., |
||||||
5.125%, Due 5/1/2015C |
250 | 252 | ||||
3.75%, Due 3/7/2017C |
1,500 | 1,482 | ||||
JPMorgan Chase & Co., |
||||||
3.45%, Due 3/1/2016 |
1,320 | 1,382 |
See accompanying notes
29
American Beacon Intermediate Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount |
Fair Value | |||||
(000s) |
(000s) | |||||
3.15%, Due 7/5/2016 |
$2,000 | $2,073 | ||||
5.50%, Due 10/15/2040 |
425 | 467 | ||||
JPMorgan Chase Bank NA, 0.804%, Due 6/13/2016B |
480 | 448 | ||||
KeyCorp, 5.10%, Due 3/24/2021 |
235 | 264 | ||||
Liberty Mutual Group, Inc., 5.00%, Due 6/1/2021C |
390 | 394 | ||||
Lincoln National Corp., 4.75%, Due 2/15/2014 |
50 | 52 | ||||
Lloyds TSB Bank plc, |
||||||
4.375%, Due 1/12/2015C |
375 | 384 | ||||
4.20%, Due 3/28/2017 |
800 | 812 | ||||
6.375%, Due 1/21/2021 |
260 | 281 | ||||
Merrill Lynch & Co. Inc, |
||||||
6.40%, Due 8/28/2017 |
940 | 1,016 | ||||
6.50%, Due 7/15/2018 |
520 | 568 | ||||
6.11%, Due 1/29/2037 |
360 | 344 | ||||
MetLife, Inc., |
||||||
5.00%, Due 11/24/2013 |
620 | 659 | ||||
6.375%, Due 6/15/2034 |
500 | 614 | ||||
Monumental Global Funding III, 0.667%, Due 1/15/2014B C |
375 | 368 | ||||
Morgan Stanley, |
||||||
2.066%, Due 1/24/2014B C |
2,000 | 1,935 | ||||
0.947%, Due 10/15/2015B C |
1,180 | 1,042 | ||||
7.30%, Due 5/13/2019 |
370 | 397 | ||||
5.625%, Due 9/23/2019 |
600 | 593 | ||||
National Australia Bank Ltd., 4.375%, Due 12/10/2020C |
425 | 454 | ||||
Nordea Bank AB, 4.875%, Due 1/27/2020C |
450 | 485 | ||||
PNC Funding Corp., |
||||||
4.25%, Due 9/21/2015 |
845 | 924 | ||||
4.375%, Due 8/11/2020 |
410 | 452 | ||||
3.30%, Due 3/8/2022 |
690 | 698 | ||||
Prudential Financial, Inc., 7.375%, Due 6/15/2019 |
450 | 560 | ||||
Rabobank Nederland, |
||||||
4.20%, Due 5/13/2014C |
600 | 631 | ||||
2.125%, Due 10/13/2015 |
815 | 822 | ||||
Royal Bank of Canada, 1.15%, Due 3/13/2015 |
550 | 551 | ||||
Simon Property Group LP, |
||||||
5.75%, Due 12/1/2015D E |
180 | 203 | ||||
2.80%, Due 1/30/2017D E |
530 | 547 | ||||
10.35%, Due 4/1/2019D E |
375 | 520 | ||||
Societe Generale S.A., |
||||||
2.20%, Due 9/14/2013C |
450 | 447 | ||||
1.519%, Due 4/11/2014B C |
900 | 859 | ||||
State Street Corp., |
||||||
4.30%, Due 5/30/2014 |
285 | 305 | ||||
2.875%, Due 3/7/2016 |
1,225 | 1,290 | ||||
SunTrust Banks, Inc., 3.50%, Due 1/20/2017 |
1,160 | 1,190 | ||||
Svenska Handelsbanken AB, 2.875%, Due 4/4/2017 |
800 | 813 | ||||
Travelers Property Casualty Corp., 5.00%, Due 3/15/2013 |
805 | 833 | ||||
UBS AG, 5.875%, Due 12/20/2017 |
1,200 | 1,330 | ||||
US Bancorp, 2.20%, Due 11/15/2016 |
2,040 | 2,100 | ||||
Wachovia Corp., |
||||||
0.837%, Due 10/15/2016B |
750 | 698 | ||||
5.75%, Due 2/1/2018 |
2,325 | 2,712 | ||||
Westpac Banking Corp., 2.25%, Due 11/19/2012 |
845 | 853 | ||||
Willis North America, Inc., 6.20%, Due 3/28/2017 |
280 | 316 | ||||
78,236 | ||||||
Industrials - 21.29% |
||||||
Altria Group, Inc., |
||||||
9.70%, Due 11/10/2018 |
375 | 509 | ||||
4.75%, Due 5/5/2021 |
390 | 429 | ||||
America Movil SAB de CV, 6.375%, Due 3/1/2035 |
375 | 455 | ||||
American Honda Finance Corp., |
||||||
4.625%, Due 4/2/2013C |
250 | 259 |
See accompanying notes
30
American Beacon Intermediate Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount |
Fair Value | |||||
(000s) |
(000s) | |||||
2.125%, Due 2/28/2017C |
$1,000 | $1,015 | ||||
3.875%, Due 9/21/2020C |
225 | 237 | ||||
Analog Devices, Inc., 3.00%, Due 4/15/2016 |
635 | 674 | ||||
Anheuser-Busch InBev Worldwide, Inc., |
||||||
5.00%, Due 4/15/2020 |
380 | 447 | ||||
8.00%, Due 11/15/2039 |
175 | 272 | ||||
Apache Corp., |
||||||
3.25%, Due 4/15/2022 |
495 | 511 | ||||
5.10%, Due 9/1/2040 |
200 | 220 | ||||
Applied Materials, Inc., 2.65%, Due 6/15/2016 |
720 | 755 | ||||
AT&T, Inc., |
||||||
5.10%, Due 9/15/2014 |
1,665 | 1,828 | ||||
5.50%, Due 2/1/2018 |
975 | 1,150 | ||||
6.80%, Due 5/15/2036 |
225 | 282 | ||||
6.40%, Due 5/15/2038 |
200 | 243 | ||||
5.35%, Due 9/1/2040 |
283 | 309 | ||||
5.55%, Due 8/15/2041 |
1,000 | 1,142 | ||||
Baxter International, Inc., 1.85%, Due 1/15/2017 |
590 | 603 | ||||
Becton Dickinson and Co., 3.25%, Due 11/12/2020 |
475 | 501 | ||||
BHP Billiton Finance USA Ltd., 1.125%, Due 11/21/2014 |
415 | 418 | ||||
Boeing Co., 1.875%, Due 11/20/2012 |
400 | 403 | ||||
BP Capital Markets plc, |
||||||
3.20%, Due 3/11/2016 |
1,530 | 1,630 | ||||
3.561%, Due 11/1/2021 |
325 | 340 | ||||
Burlington Northern Santa Fe LLC, |
||||||
5.75%, Due 3/15/2018A |
600 | 718 | ||||
7.95%, Due 8/15/2030A |
245 | 338 | ||||
5.75%, Due 5/1/2040A |
190 | 221 | ||||
Cameron International Corp., 6.375%, Due 7/15/2018 |
225 | 268 | ||||
Canadian National Railway Co., 5.55%, Due 5/15/2018 |
400 | 479 | ||||
Canadian Natural Resources Ltd., |
||||||
3.45%, Due 11/15/2021 |
555 | 573 | ||||
6.25%, Due 3/15/2038 |
360 | 449 | ||||
Caterpillar Financial Services Corp., |
||||||
1.90%, Due 12/17/2012 |
100 | 101 | ||||
4.25%, Due 2/8/2013 |
250 | 257 | ||||
6.125%, Due 2/17/2014 |
1,160 | 1,274 | ||||
2.75%, Due 6/24/2015 |
380 | 400 | ||||
CBS Corp., 3.375%, Due 3/1/2022 |
2,255 | 2,219 | ||||
Cellco Partnership, 8.50%, Due 11/15/2018 |
460 | 633 | ||||
Cliffs Natural Resources, Inc., 4.875%, Due 4/1/2021 |
280 | 295 | ||||
Coca-Cola Co., 0.75%, Due 11/15/2013 |
1,115 | 1,118 | ||||
Comcast Cable Communications Holdings, Inc., 8.375%, Due 3/15/2013 |
128 | 137 | ||||
Comcast Corp., |
||||||
6.30%, Due 11/15/2017 |
465 | 564 | ||||
5.875%, Due 2/15/2018 |
235 | 279 | ||||
6.55%, Due 7/1/2039 |
500 | 620 | ||||
Cooper US, Inc., |
||||||
2.375%, Due 1/15/2016 |
480 | 494 | ||||
3.875%, Due 12/15/2020 |
315 | 343 | ||||
Covidien International Finance S.A., 2.80%, Due 6/15/2015 |
845 | 882 | ||||
CSX Corp., 5.50%, Due 4/15/2041 |
425 | 476 | ||||
CVS Caremark Corp., 3.25%, Due 5/18/2015 |
190 | 202 | ||||
Daimler Finance North America LLC, |
||||||
3.00%, Due 3/28/2016A C |
190 | 198 | ||||
2.95%, Due 1/11/2017A C |
2,400 | 2,503 | ||||
Deutsche Telekom International Finance BV, 4.875%, Due 3/6/2042C |
850 | 801 | ||||
DIRECTV Holdings LLC, |
||||||
3.50%, Due 3/1/2016A |
1,025 | 1,082 | ||||
6.35%, Due 3/15/2040A |
145 | 161 | ||||
Dow Chemical Co., |
||||||
7.60%, Due 5/15/2014 |
440 | 496 | ||||
4.25%, Due 11/15/2020 |
430 | 456 |
See accompanying notes
31
American Beacon Intermediate Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount |
Fair Value | |||||
(000s) |
(000s) | |||||
4.125%, Due 11/15/2021 |
$400 | $417 | ||||
Eaton Corp., 5.60%, Due 5/15/2018 |
380 | 451 | ||||
Ecolab, Inc., 2.375%, Due 12/8/2014 |
310 | 321 | ||||
Enterprise Products Operating LLC, |
||||||
5.65%, Due 4/1/2013A |
555 | 578 | ||||
6.125%, Due 10/15/2039A |
350 | 403 | ||||
EOG Resources, Inc., 2.50%, Due 2/1/2016 |
425 | 443 | ||||
Express Scripts, Inc., 6.25%, Due 6/15/2014 |
610 | 671 | ||||
France Telecom S.A., |
||||||
4.375%, Due 7/8/2014 |
385 | 410 | ||||
2.125%, Due 9/16/2015 |
225 | 228 | ||||
Freeport-McMoRan Copper & Gold, Inc., 3.55%, Due 3/1/2022 |
885 | 874 | ||||
Genzyme Corp., 5.00%, Due 6/15/2020 |
235 | 276 | ||||
Gilead Sciences, Inc., 2.40%, Due 12/1/2014 |
875 | 906 | ||||
Halliburton Co., 3.25%, Due 11/15/2021 |
355 | 368 | ||||
Hewlett-Packard Co., |
||||||
2.20%, Due 12/1/2015 |
425 | 430 | ||||
4.05%, Due 9/15/2022 |
350 | 353 | ||||
Husky Energy, Inc., |
||||||
5.90%, Due 6/15/2014 |
500 | 549 | ||||
3.95%, Due 4/15/2022 |
690 | 716 | ||||
Intel Corp., 3.30%, Due 10/1/2021 |
315 | 333 | ||||
John Deere Capital Corp., 4.90%, Due 9/9/2013 |
700 | 741 | ||||
Johnson Controls, Inc., |
||||||
1.75%, Due 3/1/2014 |
1,475 | 1,500 | ||||
5.00%, Due 3/30/2020 |
480 | 549 | ||||
Kellogg Co., |
||||||
4.25%, Due 3/6/2013 |
250 | 258 | ||||
1.875%, Due 11/17/2016 |
200 | 203 | ||||
Koninklijke Philips Electronics N.V., 5.75%, Due 3/11/2018 |
955 | 1,125 | ||||
Lorillard Tobacco Co., 8.125%, Due 6/23/2019 |
255 | 318 | ||||
Marathon Oil Corp., 6.00%, Due 10/1/2017 |
475 | 560 | ||||
McKesson Corp., 3.25%, Due 3/1/2016 |
200 | 216 | ||||
Medtronic, Inc., 3.00%, Due 3/15/2015 |
1,855 | 1,976 | ||||
Molson Coors Brewing Co., 3.50%, Due 5/1/2022 |
140 | 141 | ||||
Norfolk Southern Corp., 5.75%, Due 4/1/2018 |
300 | 359 | ||||
Northrop Grumman Corp., 5.05%, Due 8/1/2019 |
200 | 229 | ||||
Novartis Capital Corp., 2.90%, Due 4/24/2015 |
1,255 | 1,336 | ||||
ONEOK Partners LP, 6.125%, Due 2/1/2041E |
500 | 574 | ||||
PepsiCo, Inc., 2.50%, Due 5/10/2016 |
1,005 | 1,059 | ||||
Petrobras International Finance Co., |
||||||
3.875%, Due 1/27/2016 |
300 | 314 | ||||
3.50%, Due 2/6/2017 |
340 | 349 | ||||
5.375%, Due 1/27/2021 |
500 | 549 | ||||
6.875%, Due 1/20/2040 |
110 | 133 | ||||
Petroleos Mexicanos, 6.00%, Due 3/5/2020 |
375 | 430 | ||||
Phillips 66, |
||||||
1.95%, Due 3/5/2015C |
380 | 384 | ||||
4.30%, Due 4/1/2022C |
750 | 782 | ||||
Pride International, Inc., 6.875%, Due 8/15/2020 |
305 | 376 | ||||
Quest Diagnostics, Inc., 4.75%, Due 1/30/2020 |
225 | 246 | ||||
Rio Tinto Finance USA Ltd., 2.50%, Due 5/20/2016 |
815 | 847 | ||||
Rogers Communications, Inc., 5.50%, Due 3/15/2014 |
430 | 465 | ||||
SABMiller Holdings, Inc., |
||||||
3.75%, Due 1/15/2022C |
2,000 | 2,079 | ||||
4.95%, Due 1/15/2042C |
400 | 425 | ||||
Sanofi, |
||||||
1.625%, Due 3/28/2014 |
1,285 | 1,312 | ||||
4.00%, Due 3/29/2021 |
495 | 549 | ||||
Spectra Energy Capital LLC, |
||||||
5.668%, Due 8/15/2014A |
320 | 349 | ||||
5.65%, Due 3/1/2020A |
265 | 302 | ||||
Spectra Energy Partners LP, 4.60%, Due 6/15/2021E |
235 | 249 |
See accompanying notes
32
American Beacon Intermediate Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount | Fair Value | |||||||
(000s) | (000s) | |||||||
Teck Resources Ltd., 6.00%, Due 8/15/2040 |
$205 | $220 | ||||||
Telecom Italia Capital S.A., 6.999%, Due 6/4/2018 |
150 | 157 | ||||||
Telefonica Emisiones SAU, |
||||||||
3.992%, Due 2/16/2016 |
255 | 247 | ||||||
6.421%, Due 6/20/2016 |
450 | 463 | ||||||
Teva Pharmaceutical Finance II, 3.00%, Due 6/15/2015 |
910 | 957 | ||||||
Thomson Reuters Corp., 4.70%, Due 10/15/2019 |
225 | 252 | ||||||
Time Warner Cable, Inc., |
||||||||
5.85%, Due 5/1/2017 |
800 | 937 | ||||||
6.75%, Due 7/1/2018 |
615 | 751 | ||||||
Time Warner, Inc., |
||||||||
4.875%, Due 3/15/2020 |
290 | 325 | ||||||
4.75%, Due 3/29/2021 |
350 | 390 | ||||||
Toyota Motor Credit Corp., 2.05%, Due 1/12/2017 |
1,365 | 1,399 | ||||||
TransCanada PipeLines Ltd., |
||||||||
7.625%, Due 1/15/2039 |
470 | 683 | ||||||
6.10%, Due 6/1/2040 |
290 | 371 | ||||||
Tyco Electronics Group S.A., |
||||||||
1.60%, Due 2/3/2015 |
575 | 577 | ||||||
6.55%, Due 10/1/2017 |
225 | 269 | ||||||
Tyco International Finance S.A., 3.75%, Due 1/15/2018 |
400 | 431 | ||||||
Union Pacific Corp., 4.163%, Due 7/15/2022 |
481 | 528 | ||||||
United Technologies Corp., 6.125%, Due 7/15/2038 |
600 | 749 | ||||||
UnitedHealth Group, Inc., |
||||||||
4.875%, Due 2/15/2013 |
650 | 672 | ||||||
3.875%, Due 10/15/2020 |
425 | 460 | ||||||
Vale Overseas Ltd., 4.375%, Due 1/11/2022 |
400 | 410 | ||||||
Valero Energy Corp., |
||||||||
9.375%, Due 3/15/2019 |
170 | 225 | ||||||
6.625%, Due 6/15/2037 |
205 | 222 | ||||||
Verizon Communications, Inc., |
||||||||
5.50%, Due 4/1/2017 |
500 | 587 | ||||||
4.60%, Due 4/1/2021 |
280 | 317 | ||||||
3.50%, Due 11/1/2021 |
200 | 209 | ||||||
6.90%, Due 4/15/2038 |
500 | 659 | ||||||
Viacom, Inc., 4.50%, Due 2/27/2042 |
500 | 486 | ||||||
Vodafone Group plc, |
||||||||
1.625%, Due 3/20/2017 |
1,015 | 1,011 | ||||||
6.15%, Due 2/27/2037 |
360 | 448 | ||||||
Volkswagen International Finance N.V., 1.625%, Due 3/22/2015C |
850 | 853 | ||||||
Wal-Mart Stores, Inc., 7.55%, Due 2/15/2030 |
400 | 591 | ||||||
Xerox Corp., |
||||||||
5.65%, Due 5/15/2013 |
50 | 52 | ||||||
8.25%, Due 5/15/2014 |
190 | 214 | ||||||
4.25%, Due 2/15/2015 |
500 | 533 | ||||||
2.95%, Due 3/15/2017 |
175 | 179 | ||||||
| ||||||||
81,514 | ||||||||
| ||||||||
Utilities - 3.33% |
||||||||
Columbus Southern Power Co., 5.50%, Due 3/1/2013 |
640 | 664 | ||||||
Commonwealth Edison Co., 4.00%, Due 8/1/2020 |
190 | 209 | ||||||
Consolidated Edison Co. of New York, Inc., 5.50%, Due 12/1/2039 |
350 | 428 | ||||||
Duke Energy Carolinas LLC, 5.10%, Due 4/15/2018A |
400 | 473 | ||||||
Duke Energy Indiana, Inc., 6.05%, Due 6/15/2016 |
450 | 525 | ||||||
EDF S.A., 4.60%, Due 1/27/2020C |
580 | 624 | ||||||
Energy Transfer Partners LP, |
||||||||
8.50%, Due 4/15/2014E |
485 | 545 | ||||||
9.00%, Due 4/15/2019E |
300 | 375 | ||||||
Exelon Generation Co. LLC, |
||||||||
5.20%, Due 10/1/2019A |
350 | 394 | ||||||
6.25%, Due 10/1/2039A |
365 | 423 | ||||||
FirstEnergy Solutions Corp., 4.80%, Due 2/15/2015 |
175 | 189 | ||||||
MidAmerican Energy Holdings Co., 6.125%, Due 4/1/2036 |
375 | 457 |
See accompanying notes
33
American Beacon Intermediate Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount | Fair Value | |||||||
(000s) | (000s) | |||||||
National Rural Utilities Cooperative Finance Corp., |
||||||||
1.125%, Due 11/1/2013 |
$485 | $489 | ||||||
5.45%, Due 4/10/2017 |
500 | 585 | ||||||
Pacific Gas & Electric Co., |
||||||||
6.25%, Due 12/1/2013 |
150 | 163 | ||||||
3.50%, Due 10/1/2020 |
450 | 478 | ||||||
Progress Energy, Inc., |
||||||||
4.875%, Due 12/1/2019 |
450 | 514 | ||||||
4.40%, Due 1/15/2021 |
1,000 | 1,117 | ||||||
Sempra Energy, 6.50%, Due 6/1/2016 |
565 | 672 | ||||||
Southern Co., 1.95%, Due 9/1/2016 |
380 | 389 | ||||||
Southwestern Electric Power Co., 3.55%, Due 2/15/2022 |
800 | 806 | ||||||
Union Electric Co., 6.70%, Due 2/1/2019 |
510 | 635 | ||||||
Virginia Electric and Power Co., 5.40%, Due 4/30/2018 |
400 | 480 | ||||||
Westar Energy, Inc., 6.00%, Due 7/1/2014 |
200 | 219 | ||||||
Xcel Energy, Inc., 5.613%, Due 4/1/2017 |
781 | 904 | ||||||
12,757 | ||||||||
Total Corporate Obligations (Cost $163,167) |
172,507 | |||||||
OTHER GOVERNMENT OBLIGATIONS - 0.22% |
||||||||
Province of Ontario Canada, |
||||||||
4.10%, Due 6/16/2014 |
350 | 375 | ||||||
3.15%, Due 12/15/2017 |
425 | 459 | ||||||
Total Other Government Obligations (Cost $774) |
834 | |||||||
U.S. AGENCY OBLIGATIONS - 0.11% (Cost $400) |
||||||||
Private Export Funding Corp., 2.125%, Due 7/15/2016 |
400 | 420 | ||||||
ASSET-BACKED SECURITIES - 1.81% |
||||||||
Ally Master Owner Trust, 0.890%, Due 6/15/2015, 2011-5 AB |
750 | 751 | ||||||
CNH Equipment Trust, |
||||||||
1.17%, Due 5/15/2015, 2010-C A3 |
504 | 506 | ||||||
2.04%, Due 10/17/2016, 2011-A A4 |
470 | 484 | ||||||
0.94%, Due 5/15/2017, 2012 A A3 |
830 | 832 | ||||||
Ford Credit Floorplan Master Owner Trust, 1.790%, Due 9/15/2014, 2009-2 AB |
2,400 | 2,414 | ||||||
Harley-Davidson Motorcycle Trust, 1.87%, Due 2/15/2014, 2009-4 A3 |
38 | 38 | ||||||
Honda Auto Receivables Owner Trust, 3.30%, Due 9/15/2015, 2009-3 A4 |
385 | 390 | ||||||
Hyundai Auto Receivables Trust, 3.15%, Due 3/15/2016, 2009-A A4 |
220 | 225 | ||||||
John Deere Owner Trust, 3.96%, Due 5/16/2016, 2009-A A4 |
326 | 327 | ||||||
Nissan Master Owner Trust Receivables, 1.390%, Due 1/15/2015, 2010-AA AB C |
750 | 756 | ||||||
Volkswagen Auto Loan Enhanced Trust, 6.24%, Due 7/20/2015, 2008-2 A4A |
195 | 198 | ||||||
Total Asset-Backed Securities (Cost $6,906) |
6,921 | |||||||
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS - 2.67% |
||||||||
Banc of America Merrill Lynch Commercial Mortgage, Inc., |
||||||||
5.317%, Due 9/10/2047, 2006-5 A2 |
323 | 324 | ||||||
5.634%, Due 4/10/2049, 2007-2 A2 |
322 | 329 | ||||||
Bear Stearns Commercial Mortgage Securities, |
||||||||
5.201%, Due 12/11/2038, 2006-PW14 A4 |
790 | 888 | ||||||
5.54%, Due 9/11/2041, 2006-PW13 A4 |
1,285 | 1,461 | ||||||
4.831%, Due 7/11/2042, 2004-PWR5 A4 |
606 | 623 | ||||||
GS Mortgage Securities Corp II, |
||||||||
4.607%, Due 7/10/2039, 2005-GG4 A3 |
196 | 196 | ||||||
3.679%, Due 8/10/2043, 2010-C1 A1C |
545 | 582 | ||||||
3.849%, Due 12/10/2043, 2010-C2 A1C |
774 | 832 | ||||||
3.645%, Due 3/10/2044, 2011-GC3 A2C |
750 | 802 | ||||||
JP Morgan Chase Commercial Mortgage Securities Corp., |
||||||||
4.678%, Due 7/15/2042, 2005-LDP2 A3A |
214 | 217 | ||||||
3.853%, Due 6/15/2043, 2010-C1 A1C |
721 | 765 | ||||||
4.388%, Due 2/15/2046, 2011-C3 A3C |
800 | 875 | ||||||
4.625%, Due 3/15/2046, 2005-LDP1 A2 |
189 | 192 |
See accompanying notes
34
American Beacon Intermediate Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount |
Fair Value | |||||
(000s) |
(000s) | |||||
5.925%, Due 2/12/2049, 2007-CB19 A4 |
$550 | $627 | ||||
5.629%, Due 2/12/2051, 2007-CB20 A2 |
524 | 529 | ||||
LB-UBS Commercial Mortgage Trust, 5.424%, Due 2/15/2040, 2007-C1 A4 |
550 | 622 | ||||
Wachovia Bank Commercial Mortgage Trust, 5.922%, Due 6/15/2049, 2007-C32 A2 |
349 | 355 | ||||
Total Non-Agency Mortgage-Backed Obligations (Cost $9,364) |
10,219 | |||||
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 34.20% |
||||||
Federal Home Loan Mortgage Corporation - 6.88% |
||||||
4.50%, Due 3/1/2019 |
184 | 196 | ||||
5.00%, Due 10/1/2020 |
446 | 483 | ||||
5.00%, Due 8/1/2033 |
285 | 309 | ||||
5.50%, Due 2/1/2034 |
361 | 396 | ||||
6.00%, Due 8/1/2034 |
181 | 202 | ||||
5.00%, Due 8/1/2035 |
198 | 215 | ||||
5.00%, Due 9/1/2035 |
497 | 538 | ||||
5.50%, Due 4/1/2037 |
299 | 326 | ||||
5.00%, Due 3/1/2038 |
380 | 411 | ||||
5.50%, Due 5/1/2038 |
455 | 496 | ||||
5.50%, Due 6/1/2038 |
313 | 341 | ||||
5.00%, Due 1/1/2039 |
3,973 | 4,296 | ||||
4.00%, Due 10/1/2039 |
5,077 | 5,362 | ||||
5.00%, Due 4/1/2040 |
3,504 | 3,824 | ||||
4.50%, Due 8/1/2040 |
2,760 | 2,948 | ||||
0.640%, Due 12/15/2040 B |
2,086 | 2,085 | ||||
4.00%, Due 1/1/2041 |
1,483 | 1,568 | ||||
4.50%, Due 2/1/2041 |
1,217 | 1,301 | ||||
3.50%, Due 3/1/2042 |
1,022 | 1,062 | ||||
26,359 | ||||||
Federal National Mortgage Association - 20.58% |
||||||
6.50%, Due 2/1/2017 |
74 | 83 | ||||
5.00%, Due 12/1/2017 |
248 | 270 | ||||
4.50%, Due 9/1/2018 |
516 | 556 | ||||
4.00%, Due 8/1/2020 |
118 | 126 | ||||
4.50%, Due 3/1/2025 |
2,467 | 2,679 | ||||
4.50%, Due 5/1/2025 |
119 | 128 | ||||
4.50%, Due 6/1/2025 |
1,572 | 1,689 | ||||
3.50%, Due 1/1/2026 |
487 | 515 | ||||
4.00%, Due 5/1/2026 |
341 | 364 | ||||
5.00%, Due 3/1/2034 |
381 | 414 | ||||
5.50%, Due 6/1/2034 |
214 | 236 | ||||
4.50%, Due 9/1/2034 |
129 | 138 | ||||
5.00%, Due 2/1/2035 |
957 | 1,054 | ||||
5.50%, Due 2/1/2035 |
428 | 472 | ||||
5.00%, Due 5/1/2035 |
5,983 | 6,506 | ||||
5.00%, Due 11/1/2035 |
490 | 533 | ||||
5.50%, Due 12/1/2035 |
308 | 339 | ||||
5.00%, Due 2/1/2036 |
320 | 347 | ||||
5.50%, Due 4/1/2036 |
695 | 764 | ||||
6.00%, Due 9/1/2036 |
140 | 155 | ||||
6.50%, Due 9/1/2036 |
527 | 599 | ||||
6.50%, Due 12/1/2036 |
267 | 304 | ||||
5.50%, Due 2/1/2037 |
396 | 433 | ||||
5.50%, Due 8/1/2037 |
1,097 | 1,208 | ||||
6.00%, Due 9/1/2037 |
368 | 408 | ||||
6.00%, Due 1/1/2038 |
593 | 658 | ||||
5.50%, Due 3/1/2038 |
715 | 789 | ||||
5.00%, Due 4/1/2038 |
364 | 395 | ||||
5.00%, Due 6/1/2038 |
432 | 470 | ||||
5.50%, Due 6/1/2038 |
285 | 311 | ||||
4.50%, Due 6/1/2039 |
4,935 | 5,287 | ||||
4.50%, Due 1/1/2040 |
2,635 | 2,823 | ||||
5.00%, Due 5/1/2040 |
3,029 | 3,321 |
See accompanying notes
35
American Beacon Intermediate Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount |
Fair Value | |||||
(000s) |
(000s) | |||||
5.50%, Due 6/1/2040 |
$2,200 | $2,427 | ||||
4.50%, Due 8/1/2040 |
1,797 | 1,929 | ||||
4.00%, Due 9/1/2040 |
1,702 | 1,802 | ||||
4.00%, Due 12/1/2040 |
5,396 | 5,746 | ||||
4.00%, Due 1/1/2041 |
1,754 | 1,857 | ||||
5.00%, Due 1/1/2041 |
1,839 | 2,019 | ||||
4.00%, Due 2/1/2041 |
1,192 | 1,278 | ||||
4.50%, Due 4/1/2041 |
6,888 | 7,459 | ||||
4.50%, Due 5/1/2041 |
1,840 | 1,999 | ||||
5.50%, Due 5/1/2041 F |
5,000 | 5,467 | ||||
4.50%, Due 8/1/2041 |
1,973 | 2,136 | ||||
4.00%, Due 9/1/2041 |
4,398 | 4,659 | ||||
4.50%, Due 10/1/2041 |
1,423 | 1,542 | ||||
4.00%, Due 11/1/2041 |
1,197 | 1,275 | ||||
3.50%, Due 2/1/2042 |
2,673 | 2,779 | ||||
78,748 | ||||||
Government National Mortgage Association - 5.23% |
||||||
6.50%, Due 3/15/2028 |
197 | 229 | ||||
6.00%, Due 4/15/2031 |
230 | 261 | ||||
5.50%, Due 2/20/2034 |
270 | 303 | ||||
2.012%, Due 7/16/2035 2011-144 AB |
1,979 | 2,011 | ||||
1.692%, Due 11/16/2035 2010-148 A |
434 | 439 | ||||
2.174%, Due 7/16/2038 2011-147 A |
2,972 | 3,035 | ||||
6.00%, Due 10/15/2038 |
1,052 | 1,188 | ||||
2.989%, Due 3/16/2039 2010-71 AC |
1,011 | 1,046 | ||||
6.00%, Due 11/15/2039 |
1,002 | 1,132 | ||||
5.50%, Due 2/15/2040 |
787 | 880 | ||||
4.50%, Due 10/20/2040 |
1,297 | 1,435 | ||||
2.70%, Due 4/16/2043 2011-109 AB |
2,965 | 3,084 | ||||
2.543%, Due 9/16/2044 2011-96 AC |
2,074 | 2,147 | ||||
3.20%, Due 11/16/2044 2011-92 B |
2,700 | 2,845 | ||||
20,035 | ||||||
National Credit Union Administration - 1.51% |
||||||
0.641%, Due 3/11/2020 2011 R3 1AB |
3,352 | 3,358 | ||||
0.691%, Due 10/7/2020 2010 R1 1AB |
2,435 | 2,439 | ||||
5,797 | ||||||
Total U.S. Agency Mortgage-Backed Obligations (Cost $127,615) |
130,939 | |||||
U.S. TREASURY OBLIGATIONS - 13.61% |
||||||
U.S. Treasury Bonds - 4.16% |
||||||
6.25%, Due 8/15/2023 |
1,400 | 1,988 | ||||
6.875%, Due 8/15/2025 |
770 | 1,171 | ||||
5.25%, Due 11/15/2028 |
750 | 1,016 | ||||
4.75%, Due 2/15/2037 |
800 | 1,055 | ||||
4.50%, Due 8/15/2039 |
1,010 | 1,290 | ||||
3.75%, Due 8/15/2041 |
8,330 | 9,405 | ||||
15,925 | ||||||
U.S. Treasury Notes - 9.45% |
||||||
1.875%, Due 2/28/2014 |
3,000 | 3,088 | ||||
2.625%, Due 7/31/2014 |
2,000 | 2,104 | ||||
0.375%, Due 3/15/2015 |
2,600 | 2,600 | ||||
2.50%, Due 3/31/2015 |
5,000 | 5,304 | ||||
2.00%, Due 1/31/2016 |
4,725 | 4,979 | ||||
2.00%, Due 4/30/2016 |
2,365 | 2,496 | ||||
3.125%, Due 10/31/2016 |
1,400 | 1,549 | ||||
0.875%, Due 1/31/2017 |
1,000 | 1,005 | ||||
3.625%, Due 2/15/2020 |
700 | 811 | ||||
2.125%, Due 8/15/2021 |
2,200 | 2,256 | ||||
2.00%, Due 11/15/2021 |
5,400 | 5,459 | ||||
2.00%, Due 2/15/2022 |
4,530 | 4,564 | ||||
36,215 | ||||||
Total U.S. Treasury Obligations (Cost $50,858) |
52,140 |
See accompanying notes
36
American Beacon Intermediate Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Shares | Fair Value | |||||
(000s) | ||||||
SHORT-TERM INVESTMENTS - 2.82% |
||||||
JPMorgan U.S. Government Money Market Fund |
4,781,779 | $4,782 | ||||
Par Amount | ||||||
U.S. Treasury Bills - 1.57% |
(000s) | |||||
United States Treasury Bill , 0.06%, Due 5/17/2012 |
$ 6,000 | 6,000 | ||||
| ||||||
Total Short-Term Investments (Cost $10,782) |
10,782 | |||||
| ||||||
TOTAL INVESTMENTS - 100.49% (Cost $369,865) |
384,762 | |||||
LIABILITIES, NET OF OTHER ASSETS - (0.49%) |
(1,868) | |||||
| ||||||
TOTAL NET ASSETS - 100.00% |
$382,894 | |||||
| ||||||
Percentages are stated as a percent of net assets. |
A Limited Liability Company.
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.
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 $24,263 or 6.34% of net assets. The Fund has no right to demand registration of these securities.
D REIT - Real Estate Investment Trust.
E Limited Partnership.
F TBA - To Be Announced.
See accompanying notes
37
American Beacon Short-Term Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount | Fair Value | |||||
(000s) | (000s) | |||||
CORPORATE OBLIGATIONS - 50.37% |
||||||
Financials - 26.75% |
||||||
ABN Amro Bank N.V., 2.236%, Due 1/30/2014A B |
$2,000 | $1,999 | ||||
American Express Co., 7.25%, Due 5/20/2014 |
1,000 | 1,116 | ||||
American International Group, Inc., |
||||||
3.65%, Due 1/15/2014 |
2,000 | 2,043 | ||||
4.25%, Due 9/15/2014 |
600 | 626 | ||||
ANZ National International Ltd., 1.474%, Due 12/20/2013A B |
2,000 | 1,991 | ||||
Bank of America Corp., |
||||||
1.886%, Due 1/30/2014A |
2,000 | 1,964 | ||||
0.804%, Due 9/15/2014A |
1,290 | 1,220 | ||||
Barclays Bank plc, 5.45%, Due 9/12/2012 |
1,000 | 1,016 | ||||
Citigroup, Inc., |
||||||
1.398%, Due 4/1/2014A |
1,000 | 981 | ||||
0.811%, Due 11/5/2014A |
2,573 | 2,455 | ||||
Credit Suisse, 5.00%, Due 5/15/2013 |
2,000 | 2,076 | ||||
Danske Bank A/S, 1.517%, Due 4/14/2014A B |
3,000 | 2,917 | ||||
Dexia Credit Local, 0.880%, Due 3/5/2013A B |
3,000 | 2,885 | ||||
Goldman Sachs Group, Inc., |
||||||
4.75%, Due 7/15/2013 |
2,000 | 2,066 | ||||
5.125%, Due 1/15/2015 |
1,000 | 1,052 | ||||
0.866%, Due 7/22/2015A |
1,000 | 921 | ||||
HSBC Finance Corp., 0.717%, Due 1/15/2014A |
1,000 | 975 | ||||
ING Bank N.V., 1.875%, Due 6/9/2014A B |
3,000 | 2,969 | ||||
Lloyds TSB Bank plc, 2.816%, Due 1/24/2014A |
2,000 | 1,985 | ||||
MetLife Institutional Funding II, 1.368%, Due 4/4/2014A B |
3,000 | 3,011 | ||||
Monumental Global Funding III, 0.667%, Due 1/15/2014A B |
1,000 | 983 | ||||
Morgan Stanley, 0.947%, Due 10/15/2015A |
3,000 | 2,649 | ||||
National Australia Bank Ltd., 1.416%, Due 7/25/2014A B |
3,000 | 3,015 | ||||
Prudential Financial, Inc., 4.50%, Due 7/15/2013 |
1,000 | 1,040 | ||||
Societe Generale S.A., 1.519%, Due 4/11/2014A B |
2,000 | 1,909 | ||||
Svenska Handelsbanken AB, 4.875%, Due 6/10/2014B |
1,500 | 1,592 | ||||
Wachovia Bank NA, 0.917%, Due 11/3/2014A |
1,000 | 982 | ||||
| ||||||
48,438 | ||||||
| ||||||
Industrials - 20.37% |
||||||
American Honda Finance Corp., |
||||||
4.625%, Due 4/2/2013B |
1,000 | 1,038 | ||||
1.45%, Due 2/27/2015B |
2,000 | 2,013 | ||||
Anheuser-Busch InBev Worldwide, Inc., |
||||||
3.00%, Due 10/15/2012 |
1,000 | 1,011 | ||||
2.50%, Due 3/26/2013 |
1,000 | 1,016 | ||||
BP Capital Markets plc, 1.074%, Due 3/11/2014A |
3,000 | 3,023 | ||||
Burlington Northern Santa Fe Corp., 4.875%, Due 1/15/2015 |
1,000 | 1,097 | ||||
Caterpillar Financial Services Corp., 4.25%, Due 2/8/2013 |
500 | 515 | ||||
Comcast Cable Communications Holdings, Inc., 8.375%, Due 3/15/2013 |
1,365 | 1,456 | ||||
Daimler Finance North America LLC, |
||||||
1.083%, Due 3/28/2014A B C |
2,000 | 1,987 | ||||
2.30%, Due 1/9/2015B |
1,000 | 1,020 | ||||
EOG Resources Canada, Inc., 4.75%, Due 3/15/2014B |
1,000 | 1,067 | ||||
France Telecom S.A., 4.375%, Due 7/8/2014 |
1,000 | 1,065 | ||||
General Mills, Inc., 5.25%, Due 8/15/2013 |
1,000 | 1,058 | ||||
Hewlett-Packard Co., |
||||||
4.50%, Due 3/1/2013A |
1,000 | 1,030 | ||||
0.891%, Due 5/30/2014A |
1,000 | 988 | ||||
John Deere Capital Corp., 5.25%, Due 10/1/2012 |
1,000 | 1,020 | ||||
Johnson Controls, Inc., 1.75%, Due 3/1/2014 |
500 | 508 | ||||
Nissan Motor Acceptance Corp., 4.50%, Due 1/30/2015B |
1,000 | 1,071 | ||||
Quest Diagnostics, Inc., 1.324%, Due 3/24/2014A |
1,000 | 1,008 | ||||
SABMiller Holdings, Inc., 1.85%, Due 1/15/2015B |
1,000 | 1,014 | ||||
SABMiller plc, 6.50%, Due 7/1/2016B |
1,725 | 1,987 | ||||
Telefonica Emisiones SAU, 0.861%, Due 2/4/2013A |
1,000 | 980 | ||||
Time Warner Cable, Inc., 5.40%, Due 7/2/2012 |
1,000 | 1,008 |
See accompanying notes
38
American Beacon Short-Term Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount | Fair Value | |||||||
(000s) | (000s) | |||||||
Tyco International Finance S.A., 4.125%, Due 10/15/2014 |
$500 | $536 | ||||||
Union Pacific Corp., 5.45%, Due 1/31/2013 |
1,000 | 1,036 | ||||||
Verizon Communications, Inc., 1.083%, Due 3/28/2014A |
3,000 | 3,029 | ||||||
Viacom, Inc., 1.25%, Due 2/27/2015 |
1,000 | 1,002 | ||||||
Volkswagen International Finance N.V., |
||||||||
1.625%, Due 8/12/2013B |
1,000 | 1,006 | ||||||
1.078%, Due 4/1/2014A B |
2,000 | 1,994 | ||||||
Xerox Corp., 5.65%, Due 5/15/2013 |
300 | 313 | ||||||
36,896 | ||||||||
Utilities - 3.25% |
||||||||
Dominion Resources, Inc., 5.70%, Due 9/17/2012 |
1,000 | 1,019 | ||||||
DTE Energy Co., 1.180%, Due 6/3/2013A |
1,000 | 1,004 | ||||||
EDF S.A., 5.50%, Due 1/26/2014B |
1,000 | 1,068 | ||||||
MidAmerican Energy Holdings Co., 3.15%, Due 7/15/2012 |
1,000 | 1,005 | ||||||
NextEra Energy Capital Holdings, Inc., 0.92%, Due 11/9/2012A |
1,000 | 999 | ||||||
Pacific Gas & Electric Co., 6.25%, Due 12/1/2013 |
730 | 792 | ||||||
5,887 | ||||||||
Total Corporate Obligations (Cost $91,277) |
91,221 | |||||||
ASSET-BACKED SECURITIES - 11.52% |
||||||||
Ally Master Owner Trust, |
||||||||
0.870%, Due 5/15/2016, 2011-3 A1A |
2,000 | 2,007 | ||||||
1.040%, Due 9/15/2016, 2011-4 A1A |
4,000 | 4,001 | ||||||
Bank of America Auto Trust, 2.13%, Due 9/15/2013, 2009-2A A3B |
13 | 13 | ||||||
BMW Vehicle Lease Trust, 0.75%, Due 2/20/2015, 2012-1 A3 |
2,250 | 2,250 | ||||||
Ford Credit Auto Owner Trust, |
||||||||
2.17%, Due 10/15/2013, 2009-D A3 |
188 | 189 | ||||||
0.84%, Due 8/15/2016, 2012-1A A3 |
2,000 | 2,006 | ||||||
Ford Credit Floorplan Master Owner Trust, 0.840%, Due 2/15/2016, 2011-1 A2A |
2,000 | 2,011 | ||||||
GE Dealer Floorplan Master Note Trust, 0.840%, Due 7/20/2016, 2011-1 AA |
2,500 | 2,511 | ||||||
GE Equipment Small Ticket LLC, 1.45%, Due 1/21/2018, 2011-1A A3B C |
1,000 | 1,005 | ||||||
GE Equipment Transportation LLC, 1.00%, Due 10/20/2014, 2011-1 A3C |
2,000 | 2,006 | ||||||
Harley-Davidson Motorcycle Trust, 5.52%, Due 11/15/2013, 2007-3 A4 |
81 | 81 | ||||||
Honda Auto Receivables Owner Trust, 2.31%, Due 5/15/2013, 2009-3 A3 |
115 | 115 | ||||||
Volkswagen Auto Loan Enhanced Trust, |
||||||||
6.24%, Due 7/20/2015, 2008-2 A4A |
648 | 661 | ||||||
0.85%, Due 8/22/2016, 2012-1 A3 |
2,000 | 2,006 | ||||||
Total Asset-Backed Securities (Cost $20,794) |
20,862 | |||||||
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS - 1.58% |
||||||||
Banc of America Merrill Lynch Commercial Mortgage, Inc., 5.634%, Due 4/10/2049, 2007-2 A2 |
303 | 310 | ||||||
GS Mortgage Securities Corp II, 2.716%, Due 2/10/2021, 2011-ALF AB |
1,500 | 1,526 | ||||||
JP Morgan Chase Commercial Mortgage Securities Corp., 3.853%, Due 6/15/2043, 2010-C1 A1B |
962 | 1,020 | ||||||
Total Non-Agency Mortgage-Backed Obligations (Cost $2,775) |
2,856 | |||||||
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 30.44% |
||||||||
Government National Mortgage Association - 22.13% |
||||||||
1.864%, Due 8/16/2031 2010-141 A |
3,430 | 3,471 | ||||||
2.239%, Due 12/16/2031 2009-115 IO |
2,812 | 2,868 | ||||||
2.45%, Due 7/16/2032 2011-109 A |
3,913 | 4,010 | ||||||
2.25%, Due 5/16/2033 2011-92 A |
3,914 | 3,994 | ||||||
2.25%, Due 8/16/2034 2011-78 A |
2,445 | 2,493 | ||||||
2.21%, Due 11/16/2034 2011-16 A |
2,910 | 2,967 | ||||||
1.692%, Due 11/16/2035 2010-148 A |
2,896 | 2,924 | ||||||
2.21%, Due 12/16/2035 2011-31 A |
2,920 | 2,979 | ||||||
2.782%, Due 6/16/2036 2010-13 AD |
1,864 | 1,924 | ||||||
3.069%, Due 6/16/2036 2010-52 A |
2,804 | 2,930 | ||||||
2.161%, Due 11/16/2036 2011-96 AB |
2,739 | 2,800 | ||||||
2.45%, Due 7/16/2038 2011-49 A |
2,938 | 3,020 | ||||||
2.989%, Due 3/16/2039 2010-71 AC |
1,759 | 1,819 | ||||||
3.210%, Due 10/16/2039 2010-22 AB |
1,797 | 1,880 |
See accompanying notes
39
American Beacon Short-Term Bond FundSM
Schedule of Investments
April 30, 2012 (Unaudited)
Par Amount |
Fair Value | |||||
(000s) |
(000s) | |||||
$40,079 | ||||||
National Credit Union Administration - 8.31% |
||||||
0.691%, Due 1/8/2020 2011 R1 1AA |
$6,209 | $6,219 | ||||
0.641%, Due 2/6/2020 2011 R2 1AA |
1,639 | 1,639 | ||||
0.641%, Due 3/11/2020 2011 R3 1AA |
6,646 | 6,657 | ||||
1.84%, Due 10/7/2020 2010-R1 2A |
535 | 542 | ||||
15,057 | ||||||
Total U.S. Agency Mortgage-Backed Obligations (Cost $54,635) |
55,136 | |||||
U.S. TREASURY OBLIGATIONS - 5.20% |
||||||
1.875%, Due 2/28/2014 |
2,500 | 2,573 | ||||
2.50%, Due 3/31/2015 |
3,500 | 3,713 | ||||
1.75%, Due 7/31/2015 |
3,000 | 3,126 | ||||
Total U.S. Treasury Obligations (Cost $9,127) |
9,412 | |||||
Shares | ||||||
SHORT-TERM INVESTMENTS - 0.62% (Cost $1,117) |
||||||
JPMorgan U.S. Government Money Market Fund |
1,117,094 | 1,117 | ||||
TOTAL INVESTMENTS - 99.73% (Cost $179,724) |
180,604 | |||||
OTHER ASSETS, NET OF LIABILITIES - 0.27% |
504 | |||||
TOTAL NET ASSETS - 100.00% |
$181,108 | |||||
|
||||||
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 $42,101 or 23.25% of net assets. The Fund has no right to demand registration of these securities.
C Limited Liability Company.
See accompanying notes
40
American Beacon FundsSM
Statements of Assets and Liabilities
April 30, 2012 (in thousands except share and per share amounts) (Unaudited)
High Yield Bond Fund |
Retirement Income and Appreciation Fund |
Intermediate Bond Fund |
Short-Term Bond Fund |
|||||||||||||
Assets: |
||||||||||||||||
Investments in unaffiliated securities, at fair value A |
$ | 146,553 | $ | 162,587 | $ | 384,762 | $ | 180,604 | ||||||||
Receivable for investments sold |
1,959 | 418 | - | - | ||||||||||||
Dividends and interest receivable |
2,985 | 1,199 | 2,514 | 639 | ||||||||||||
Receivable for fund shares sold |
1,036 | 83 | 1,313 | 116 | ||||||||||||
Receivable for tax reclaims |
3 | 5 | 8 | - | ||||||||||||
Receivable for expense reimbursement (Note 2) |
- | - | 1 | 3 | ||||||||||||
Prepaid expenses |
42 | 53 | 52 | 34 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
152,578 | 164,345 | 388,650 | 181,396 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Payable for investments purchased |
1,555 | 533 | 5,592 | - | ||||||||||||
Payable for fund shares redeemed |
436 | 77 | 34 | 205 | ||||||||||||
Dividends payable |
51 | 2 | 10 | 5 | ||||||||||||
Management and investment advisory fees payable (Note 2) |
94 | 76 | 62 | 29 | ||||||||||||
Administrative service and service fees payable (Note 2) |
19 | 62 | 21 | 22 | ||||||||||||
Professional fees payable |
- | 13 | 14 | 4 | ||||||||||||
Trustee fees payable |
2 | 1 | 1 | 5 | ||||||||||||
Prospectus and shareholder reports |
10 | 7 | 16 | 11 | ||||||||||||
Other liabilities |
4 | 2 | 6 | 7 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
2,171 | 773 | 5,756 | 288 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets |
$ | 150,407 | $ | 163,572 | $ | 382,894 | $ | 181,108 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Analysis of Net Assets: |
||||||||||||||||
Paid-in-capital |
152,710 | 155,162 | 363,114 | 188,421 | ||||||||||||
Undistributed net investment income |
151 | (451 | ) | 502 | (478 | ) | ||||||||||
Accumulated net realized gain (loss) |
(2,626 | ) | 236 | 4,381 | (7,715 | ) | ||||||||||
Unrealized appreciation of investments |
172 | 8,625 | 14,897 | 880 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net assets |
$ | 150,407 | $ | 163,572 | $ | 382,894 | $ | 181,108 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares outstanding (no par value): |
||||||||||||||||
Institutional Class |
4,959,402 | N/A | 33,358,161 | 18,024,131 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Y Class |
4,182 | 112,130 | 6,527 | 28,538 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Investor Class |
1,067,604 | 14,616,473 | 1,201,052 | 2,141,250 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
A Class |
42,779 | 122,775 | 70,220 | 477,390 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
C Class |
148,397 | 153,589 | 49,236 | 44,634 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
AMR Class |
10,659,022 | N/A | N/A | N/A | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net asset value, offering and redemption price per share: |
||||||||||||||||
Institutional Class |
$ | 8 .91 | N/A | $ | 11 .04 | $ | 8 .74 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Y Class |
$ | 8 .92 | $ | 10 .90 | $ | 11 .08 | $ | 8 .76 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Investor Class |
$ | 8 .91 | $ | 10 .90 | $ | 11 .02 | $ | 8 .75 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
A Class (offering price $9.36, $11.21, $11.57, and $8.96, respectively) |
$ | 8 .92 | $ | 10 .93 | $ | 11 .02 | $ | 8 .74 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
C Class |
$ | 8 .90 | $ | 10 .93 | $ | 11 .02 | $ | 8 .75 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
AMR Class |
$ | 8 .91 | N/A | N/A | N/A | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
A Cost of investments in unaffiliated securities |
$ | 146,381 | $ | 153,961 | $ | 369,865 | $ | 179,724 |
See accompanying notes
41
American Beacon FundsSM
Statements of Operations
For the Six Months Ended April 30, 2012 (in thousands) (Unaudited)
High Yield Bond Fund |
Retirement Income and Appreciation Fund |
Intermediate Bond Fund |
Short-Term Bond Fund |
|||||||||||||
Investment Income: |
||||||||||||||||
Dividend income from unaffiliated securities (net of foreign taxes) A |
$ | 69 | $ | 119 | $ | 2 | $ | - | ||||||||
Interest income |
5,520 | 2,199 | 5,740 | 1,753 | ||||||||||||
Misc Income |
47 | - | - | - | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total investment income |
5,636 | 2,318 | 5,742 | 1,753 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Expenses: |
||||||||||||||||
Management and investment advisory fees (Note 2) |
279 | 234 | 448 | 180 | ||||||||||||
Administrative service fees (Note 2): |
||||||||||||||||
Institutional Class |
64 | - | 114 | 44 | ||||||||||||
Y Class |
- | 2 | - | - | ||||||||||||
Investor Class |
12 | 216 | 12 | 32 | ||||||||||||
A Class |
- | 2 | 2 | 7 | ||||||||||||
C Class |
2 | 3 | 1 | 1 | ||||||||||||
AMR Class |
20 | - | - | - | ||||||||||||
Transfer agent fees: |
||||||||||||||||
Institutional Class |
8 | - | 4 | 2 | ||||||||||||
Y Class |
- | - | - | 1 | ||||||||||||
Investor Class |
1 | 2 | - | 2 | ||||||||||||
AMR Class |
1 | - | - | - | ||||||||||||
Custody and fund accounting fees |
9 | 10 | 29 | 11 | ||||||||||||
Professional fees |
21 | 18 | 21 | 10 | ||||||||||||
Registration fees and expenses |
23 | 25 | 27 | 24 | ||||||||||||
Service fees (Note 2): |
||||||||||||||||
Y Class |
- | 1 | - | - | ||||||||||||
Investor Class |
10 | 270 | 10 | 27 | ||||||||||||
A Class |
- | 1 | 1 | 3 | ||||||||||||
C Class |
1 | 1 | - | - | ||||||||||||
Distribution fees (Note 2): |
||||||||||||||||
A Class |
- | 1 | 1 | 5 | ||||||||||||
C Class |
4 | 8 | 2 | 2 | ||||||||||||
Prospectus and shareholder reports |
21 | 10 | 28 | 20 | ||||||||||||
Trustee fees |
4 | 6 | 9 | 6 | ||||||||||||
Other expenses |
3 | 4 | 8 | 5 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
483 | 814 | 717 | 382 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (fees waived and expenses reimbursed) (Note 2) |
(1 | ) | (1 | ) | (2 | ) | (13 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net expenses |
482 | 813 | 715 | 369 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income |
5,154 | 1,505 | 5,027 | 1,384 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Realized and unrealized gain (loss) on investments: |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments |
(103 | ) | 453 | 5,032 | 124 | |||||||||||
Change in net unrealized appreciation or (depreciation) of: |
||||||||||||||||
Investments |
3,287 | 1,557 | 1,859 | 756 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net gain on investments |
3,184 | 2,010 | 6,891 | 880 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase in net assets resulting from operations |
$ | 8,338 | $ | 3,515 | $ | 11,918 | $ | 2,264 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
A Foreign taxes |
$ | - | $ | 1 | $ | - | $ | - |
See accompanying notes
42
American Beacon FundsSM
Statements of Changes in Net Assets (in thousands)
High Yield Bond Fund | Retirement Income and Appreciation Fund |
|||||||||||||||
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
|||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ | 5,154 | $ | 11,941 | $ | 1,505 | $ | 3,081 | ||||||||
Net realized gain (loss) from investments |
(103 | ) | 8,136 | 453 | 2,522 | |||||||||||
Change in net unrealized appreciation or (depreciation) of investments |
3,287 | (12,888 | ) | 1,557 | (1,793 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase in net assets resulting from operations |
8,338 | 7,189 | 3,515 | 3,810 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Distributions to Shareholders: |
||||||||||||||||
Net investment income: |
||||||||||||||||
Institutional Class |
(1,628 | ) | (3,296 | ) | - | - | ||||||||||
Y Class |
(1 | ) | - | (13 | ) | (13 | ) | |||||||||
Investor Class |
(295 | ) | (1,941 | ) | (1,862 | ) | (3,349 | ) | ||||||||
A Class |
(9 | ) | (5 | ) | (12 | ) | (10 | ) | ||||||||
C Class |
(28 | ) | (11 | ) | (12 | ) | (17 | ) | ||||||||
AMR Class |
(3,193 | ) | (6,684 | ) | - | - | ||||||||||
Net realized gain from investments: |
||||||||||||||||
Y Class |
- | - | (4 | ) | - | |||||||||||
Investor Class |
- | - | (745 | ) | - | |||||||||||
A Class |
- | - | (5 | ) | - | |||||||||||
C Class |
- | - | (9 | ) | - | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net distributions to shareholders |
(5,154 | ) | (11,937 | ) | (2,662 | ) | (3,389 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Capital Share Transactions: |
||||||||||||||||
Proceeds from sales of shares |
41,234 | 37,430 | 32,050 | 49,115 | ||||||||||||
Reinvestment of dividends and distributions |
4,843 | 11,132 | 2,642 | 3,264 | ||||||||||||
Cost of shares redeemed |
(21,370 | ) | (107,035 | ) | (22,284 | ) | (30,079 | ) | ||||||||
Redemption fees |
34 | 32 | - | - | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in net assets from capital share transactions |
24,741 | (58,441 | ) | 12,408 | 22,300 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in net assets |
27,925 | (63,189 | ) | 13,261 | 22,721 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets: |
||||||||||||||||
Beginning of period |
122,482 | 185,671 | 150,311 | 127,590 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
End of Period * |
$ | 150,407 | $ | 122,482 | $ | 163,572 | $ | 150,311 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
*Includes undistributed net investment income (loss) of |
$ | 151 | $ | 150 | $ | (451 | ) | $ | (149 | ) | ||||||
|
|
|
|
|
|
|
|
See accompanying notes
43
American Beacon FundSM
Statements of Changes in Net Assets (in thousands)
Intermediate Bond Fund | Short-Term Bond Fund | |||||||||||||||
Six
Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
Six
Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
|||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ | 5,027 | $ | 8,718 | $ | 1,384 | $ | 2,955 | ||||||||
Net realized gain on investments, futures contracts, and foreign currency transactions |
5,032 | 2,756 | 124 | 1,206 | ||||||||||||
Change in net unrealized appreciation or depreciation of investments, futures contracts, and foreign currency translations |
1,859 | (635 | ) | 756 | (3,806 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase in net assets resulting from operations |
11,918 | 10,839 | 2,264 | 355 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Distributions to Shareholders: |
||||||||||||||||
Net investment income: |
||||||||||||||||
Institutional Class |
(5,565 | ) | (9,074 | ) | (1,522 | ) | (3,233 | ) | ||||||||
Y Class |
(1 | ) | (3 | ) | (3 | ) | (5 | ) | ||||||||
Investor Class |
(86 | ) | (101 | ) | (161 | ) | (489 | ) | ||||||||
A Class |
(9 | ) | (10 | ) | (26 | ) | (20 | ) | ||||||||
C Class |
(2 | ) | (5 | ) | (2 | ) | (3 | ) | ||||||||
Net realized gain on investments: |
||||||||||||||||
Institutional Class |
(2,259 | ) | (4,838 | ) | - | - | ||||||||||
Y Class |
| (6 | ) | - | - | |||||||||||
Investor Class |
(16 | ) | (63 | ) | - | - | ||||||||||
A Class |
(3 | ) | (2 | ) | - | - | ||||||||||
C Class |
(2 | ) | (6 | ) | - | - | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net distributions to shareholders |
(7,943 | ) | (14,108 | ) | (1,714 | ) | (3,750 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Capital Share Transactions: |
||||||||||||||||
Proceeds from sales of shares |
338,578 | 64,388 | 24,122 | 97,611 | ||||||||||||
Reinvestment of dividends and distributions |
7,914 | 14,072 | 1,685 | 3,703 | ||||||||||||
Cost of shares redeemed |
(247,466 | ) | (90,614 | ) | (30,886 | ) | (66,867 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in net assets from capital share transactions |
99,026 | (12,154 | ) | (5,079 | ) | 34,447 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in net assets |
103,001 | (15,423 | ) | (4,529 | ) | 31,052 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets: |
||||||||||||||||
Beginning of period |
279,893 | 295,316 | 185,637 | 154,585 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
End of Period * |
$ | 382,894 | $ | 279,893 | $ | 181,108 | $ | 185,637 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
*Includes undistributed net investment income (loss) of |
$ | 502 | $ | 502 | $ | (478 | ) | $ | (308 | ) | ||||||
|
|
|
|
|
|
|
|
See accompanying notes
44
American Beacon FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
1. Organization and Significant Accounting Policies
American Beacon Funds (the Trust) which is comprised of 24 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 |
Each class offered by the Trust has equal rights as to assets and voting privileges. Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains and losses of each class are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include administrative service fees, service fees, and distribution fees and vary amongst the classes as described more fully in Note 2.
New Accounting Pronouncements
In May 2011, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. generally accepted accounting principles, (U.S. GAAP) and International Financial Reporting Standards (IFRSs). FASB concluded that the amendments in this ASU will improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs. The ASU is effective prospectively during interim or annual periods beginning on or after December 15, 2011.
Management has evaluated the implications of these changes and determined that the impact will only affect the disclosure requirements related to the financial statements.
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 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
45
American Beacon FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
agreements with the Manager. As compensation for performing the duties required under the Management Agreement, the Manager receives from the High Yield Bond and Retirement Income and Appreciation 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. 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. Management fees paid during the six months ended April 30, 2012 were as follows (dollars in thousands):
Management Fee Rate |
Management Fee |
Amounts paid to Investment Advisors |
Net Amounts Retained by Manager |
|||||||||||||
High Yield Bond |
0.30%-0.45% | 279 | 246 | 33 | ||||||||||||
Retirement Income and Appreciation |
0.20%-0.80% | 234 | 197 | 37 | ||||||||||||
Intermediate Bond |
0.20%-0.35% | 448 | 115 | 333 | ||||||||||||
Short-Term Bond |
0.20% | 180 | - | 180 |
Administrative Services Agreement
The Manager and the Trust entered into an Administrative Services Agreement which obligates the Manager to provide or oversee administrative services to the Funds. As compensation for performing the duties required under the Administrative Services Agreement, the Manager receives an annualized fee of 0.30% of the average daily net assets of the Institutional, Y, and Investor Classes of each Fund, 0.40% of the average daily net assets of the A and C Classes of each Fund, and 0.05% of the average daily net assets of the AMR Class, except for the Institutional Class of the Intermediate and Short-Term Bond Funds from which the Manager receives a fee of 0.05% of average daily net assets.
Distribution Plans
The Funds, except for the 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 separate fees will 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 Fund shares.
Separate Distribution Plans (the Distribution Plan) have 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.
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.
46
American Beacon FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
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. This program provides an alternative credit facility allowing the Funds to borrow from other participating Funds. For the six months ended April 30, 2012, the Funds did not utilize the credit facility as a borrower. For the six months ended April 30, 2012 the Short-Term Bond participated as a lender and earned $64. This amount is included in interest income on the Statements of Operations.
Expense Reimbursement Plan
The Manager voluntarily and contractually agreed to reimburse the following Funds to the extent that total operating expenses exceeded the Funds expense cap. Of these amounts, $610 and $2,741 was receivable from the Manager at April 30, 2012 for the Intermediate Bond and Short-Term Bond Funds, respectively. For the period ended April 30, 2012, the Manager reimbursed expenses as follows:
Expense Caps | ||||||||||
Funds |
Class | 11/1/11 to 2/29/12 |
3/1/12 to 4/30/12 |
Reimbursed Expenses |
Expiration of Reimbursements | |||||
High Yield Bond |
Y* | N/A | 0.98% | $1 | 2015 | |||||
High Yield Bond |
A | 1.12% | 1.12% | 361 | 2015 | |||||
High Yield Bond |
C | 1.87% | 1.87% | 1,104 | 2015 | |||||
Retirement Income and Appreciation |
Y* | N/A | 0.80% | 23 | 2015 | |||||
Retirement Income and Appreciation |
A | 1.14% | 1.14% | 515 | 2015 | |||||
Retirement Income and Appreciation |
C | 1.96% | 1.96% | 32 | 2015 | |||||
Intermediate Bond |
Y | 0.65% | 0.65% | 59 | 2015 | |||||
Intermediate Bond |
Investor | 0.79% | 0.79% | 1,053 | 2015 | |||||
Intermediate Bond |
A | 0.99% | 0.99% | 396 | 2015 | |||||
Intermediate Bond |
C | 1.74% | 1.74% | 178 | 2015 | |||||
Short-Term Bond |
Y | 0.64% | 0.64% | 1,008 | 2015 | |||||
Short-Term Bond* |
Investor | 0.79% | 0.79% | 7,096 | 2015 | |||||
Short-Term Bond |
A | 0.85% | 0.85% | 4,378 | 2015 | |||||
Short Term Bond |
C | 1.60% | 1.60% | 800 | 2015 |
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 High Yield Bond Fund is $11 and $5,574 expiring in 2013 and 2014, respectively; for the Retirement Income and Appreciation Fund $9,426 expiring in 2014; for the Intermediate Bond Fund $10,509, $2,320, and $3,532 expiring in 2012, 2013, and 2014, respectively; and for the Short-Term Bond Fund $40,764, $64,863, and $48,110 expiring in 2012, 2013, and 2014, respectively. During the six months ended April 30, 2012, the Funds have not recorded a liability for potential reimbursement due to the current assessment that a reimbursement is unlikely.
3. Security Valuation and Fair Value Measurements
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
47
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
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 (NAV) 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 Trusts Board of Trustees (the Board).
Other investments, including restricted securities, and those financial instruments for which the above valuation procedures are inappropriate or are deemed not to reflect fair value are stated at fair value as determined in good faith by the Valuation Committee, established by the Funds Board.
Valuation Inputs
Various inputs may be used to determine the fair 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 Funds own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.
Level 1 and Level 2 trading assets and trading liabilities, at fair value
Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities, and non-U.S. bonds are normally valued by pricing service providers that use broker dealer quotations, reported trades or valuation estimates from their internal pricing models. The service providers internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates, and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
Fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date are categorized as Level 2 of the fair value hierarchy.
Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by pricing service providers that use broker dealer quotations or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows, and market-based yield spreads for each tranche, and incorporates deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
48
American Beacon FundSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Common stocks, exchange-traded funds and financial derivative instruments, such as futures contracts that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy. Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the close of the Exchange. These securities are valued using pricing service providers that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.
Investments in registered open-end investment management companies will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Short-term investments having a maturity of 60 days or less are generally valued at amortized cost which approximates fair value. These investments are categorized as Level 2 of the fair value hierarchy.
Level 3 trading assets and trading liabilities, at fair value
The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of the fair value hierarchy are as follows:
Securities and other assets for which market quotes are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction and are categorized as Level 3 of the fair value hierarchy.
Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the Exchange close, that materially affect the values of a Funds securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade, do not open for trading for the entire day and no other market prices are available. The Board has delegated to the Manager the responsibility for monitoring significant events that may materially affect the fair values of a Funds securities or assets and for determining whether the value of the applicable securities or assets should be re-evaluated in light of such significant events.
The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation methods to the Manager. For instances in which daily market quotes are not readily available, investments may be valued, pursuant to guidelines established by the Board. In the event that the security or asset cannot be valued pursuant to one of the valuation methods established by the Board, the fair value of the security or asset will be determined in good faith by the Valuation Committee, generally based upon recommendations provided by the Manager.
When a Fund uses fair valuation methods applied by the Manager that use significant unobservable inputs to determine its NAV, the securities priced using this methodology are categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Trusts policy is intended to result in a calculation of a Funds NAV that fairly reflects security values as of the time of pricing, the Trust cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that a Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ from the value that would be realized if the securities were sold.
49
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in and out of the Level 3 category during the period. The end of period timing recognition is used for the significant transfers between Levels of the Funds assets and liabilities. In accordance with the requirements of U.S. GAAP, a fair value hierarchy and Level 3 reconciliation, if any, have been included in the Notes to the Schedule of Investments for each respective Fund.
The Funds investments are summarized by level based on the inputs used to determine their values. U.S. GAAP also requires all significant transfers between any levels to be disclosed. During the six months ended April 30, 2012, there were no significant transfers into or out of any level for the Retirement Income and Appreciation, Intermediate Bond, and Short-Term Bond Funds. For the High Yield Bond Fund, $1,650 was transferred from Common Stock Level 3 to Level 2. As of April 30, 2012, the investments were classified as described below (in thousands):
High Yield Bond |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks |
$ | 277 | $ | 2 | $ | - | $ | 279 | ||||||||
Convertible Preferred Stocks |
1,015 | - | - | 1,015 | ||||||||||||
Preferred Stocks |
980 | - | - | 980 | ||||||||||||
Convertible Obligations |
- | 887 | - | 887 | ||||||||||||
Corporate Obligations |
- | 137,769 | - | 137,769 | ||||||||||||
Sovereign Obligations |
- | 214 | - | 214 | ||||||||||||
Short-Term Investments |
5,409 | - | - | 5,409 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ | 7,681 | $ | 138,872 | $ | - | $ | 146,553 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Retirement Income and Appreciation |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock |
$ | 8,500 | $ | - | $ | - | $ | 8,500 | ||||||||
Convertible Preferred Stocks |
579 | - | - | 579 | ||||||||||||
Preferred Stocks |
1,990 | 129 | - | 2,119 | ||||||||||||
Corporate Obligations |
- | 64,548 | - | 64,548 | ||||||||||||
Convertible Obligations |
- | 18,832 | - | 18,832 | ||||||||||||
Other Government Obligations |
- | 592 | - | 592 | ||||||||||||
U.S. Agency Obligations |
- | 315 | - | 315 | ||||||||||||
Asset-Backed Securities |
- | 1,686 | - | 1,686 | ||||||||||||
Non-Agency Mortgage-Backed Obligations |
- | 5,104 | - | 5,104 | ||||||||||||
U.S. Agency Mortgage-Backed Obligations |
- | 37,058 | - | 37,058 | ||||||||||||
U.S. Treasury Obligations |
- | 22,309 | - | 22,309 | ||||||||||||
Short-Term Investments |
945 | - | - | 945 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ | 12,014 | $ | 150,573 | $ | - | $ | 162,587 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Intermediate Bond |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate Obligations |
$ | - | $ | 172,507 | $ | - | $ | 172,507 | ||||||||
Other Government Obligations |
- | 834 | - | 834 | ||||||||||||
U.S. Agency Obligations |
- | 420 | - | 420 | ||||||||||||
Asset-Backed Securities |
- | 6,921 | - | 6,921 | ||||||||||||
Non-Agency Mortgage-Backed Obligations |
- | 10,219 | - | 10,219 | ||||||||||||
U.S. Agency Mortgage-Backed Obligations |
- | 130,939 | - | 130,939 | ||||||||||||
U.S. Treasury Obligations |
- | 52,140 | - | 52,140 | ||||||||||||
Short-Term Investments |
10,782 | - | - | 10,782 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ | 10,782 | $ | 373,980 | $ | - | $ | 384,762 | ||||||||
|
|
|
|
|
|
|
|
50
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Short-Term Bond |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate Obligations |
$ | - | $ | 91,221 | $ | - | $ | 91,221 | ||||||||
Asset-Backed Securities |
- | 20,862 | - | 20,862 | ||||||||||||
Non-Agency Mortgage-Backed Obligations |
- | 2,856 | - | 2,856 | ||||||||||||
U.S. Agency Mortgage-Backed Obligations |
- | 55,136 | - | 55,136 | ||||||||||||
U.S. Treasury Obligations |
- | 9,412 | - | 9,412 | ||||||||||||
Short-Term Investments |
1,117 | - | - | 1,117 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments in Securities |
$ | 1,117 | $ | 179,487 | $ | - | $ | 180,604 | ||||||||
|
|
|
|
|
|
|
|
Transfers in or out of Level 3 represents the beginning value of any security or instrument where a change in the level has occurred from the beginning to the end of the period. The following is a reconciliation of Level 3 assets of the High Yield Bond Fund for which significant unobservable inputs were used to determine fair value (in thousands):
Common Stocks |
Preferred Stocks |
Convertible Preferred Stocks |
Convertible Obligations |
Corporate Obligations |
Totals | |||||||||||||||||||
Balance as of October 31, 2011 |
$ | 53 | $ | - | $ | - | $ | - | $ | - | $ | 53 | ||||||||||||
Realized gain (loss) |
- | - | - | - | - | - | ||||||||||||||||||
Change in unrealized appreciation or (depreciation) |
(51 | ) | - | - | - | - | (51 | ) | ||||||||||||||||
Purchases |
- | - | - | - | - | - | ||||||||||||||||||
Sales |
- | - | - | - | - | - | ||||||||||||||||||
Transfer into Level 3 |
- | - | - | - | - | - | ||||||||||||||||||
Transfer out of Level 3 |
(2 | ) | - | - | - | - | (2 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance as of April 30, 2012 |
- | - | - | - | - | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Change in unrealized at period end* |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
*Change in unrealized appreciation or (depreciation) attributable to Level 3 securities held at period end. This balance is included in the change in unrealized appreciation or (depreciation) on the Statement of Operations.
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 NAV. 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 and paid 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 Funds 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 Statement of Operations.
51
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
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. GAAP 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 High Yield Bond Fund imposes 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 Fund. The first-in, first-out method is used to determine the holding period. The fee is allocated to all classes of the Fund pro-rata based on their respective net assets.
Other
Under the Trusts organizational documents, its officers and trustees 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 Trusts 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.
4. Securities and Other Investments
Payment In-Kind Securities
Certain Funds may invest in payment in-kind securities. Payment in-kind securities give the issuer the option at each interest payment date of making interest payments in either cash or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro-rata adjustment from the unrealized appreciation or depreciation on investment to interest receivable in the Statements of Assets and Liabilities.
Restricted Securities
Certain Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities may be sold privately, but are required to be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933. Disposal of restricted securities may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted securities outstanding at the period ended April 30, 2012 are disclosed in the Notes to the Schedules of Investments.
52
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
High-Yield Securities
Non-investment-grade securities are rated below the four highest credit grades by at least one of the public rating agencies (or are unrated if not publicly rated). Participation in high-yielding securities transactions generally involves greater returns in the form of higher average yields. However, participation in such transactions involves greater risks, including sensitivity to economic changes, solvency, and relative liquidity in the secondary trading market. Lower ratings may reflect a greater possibility that the financial condition of the issuer, or adverse changes in general economic conditions, or both, may impair the ability of the issuer to make payments of interest and principal. The prices and yields of lower-rated securities generally fluctuate more than higher-quality securities, and such prices may decline significantly in periods of general economic difficulty or rising interest rates.
5. Federal Income and Excise Taxes
It is the policy of each Fund to qualify as a regulated investment company (RIC), by complying with all applicable provisions of Subchapter M of the Internal Revenue Code, as amended, 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, 2011 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. GAAP. 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, 2012 and the fiscal year ended October 31, 2011 were as follows (in thousands):
High Yield Bond | Retirement Income and Appreciation |
|||||||||||||||||||||||||
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011 | |||||||||||||||||||||||
Distributions paid from: |
(unaudited | ) | (unaudited | ) | ||||||||||||||||||||||
Ordinary income* |
||||||||||||||||||||||||||
Institutional Class |
$ 1,628 | $ 3,296 | $ - | $ - | ||||||||||||||||||||||
Y Class |
1 | - | 13 | 13 | ||||||||||||||||||||||
Investor Class |
295 | 1,941 | 1,862 | 3,349 | ||||||||||||||||||||||
A Class |
9 | 5 | 12 | 10 | ||||||||||||||||||||||
C Class |
29 | 11 | 12 | 17 | ||||||||||||||||||||||
AMR Class |
3,192 | 6,684 | - | - | ||||||||||||||||||||||
Long-term capital gains* |
||||||||||||||||||||||||||
Institutional Class |
- | - | - | - | ||||||||||||||||||||||
Y Class |
- | - | 4 | - | ||||||||||||||||||||||
Investor Class |
- | - | 745 | - | ||||||||||||||||||||||
A Class |
- | - | 5 | - | ||||||||||||||||||||||
C Class |
- | - | 9 | - | ||||||||||||||||||||||
AMR Class |
- | - | - | - | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total distributions paid |
$ 5,154 | $11,937 | $2,662 | $3,389 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
*For tax purposes, short-term capital gains are considered ordinary income distributions.
53
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Intermediate Bond | Short-Term Bond | |||||||||||||||||||
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011 | |||||||||||||||||
Distributions paid from: |
(unaudited | ) | (unaudited | ) | ||||||||||||||||
Ordinary income* |
||||||||||||||||||||
Institutional Class |
$5,565 | $12,384 | $1,523 | $3,233 | ||||||||||||||||
Y Class |
1 | 8 | 3 | 5 | ||||||||||||||||
Investor Class |
86 | 144 | 161 | 489 | ||||||||||||||||
A Class |
9 | 11 | 26 | 20 | ||||||||||||||||
C Class |
2 | 9 | 1 | 3 | ||||||||||||||||
Long-term capital gains* |
||||||||||||||||||||
Institutional Class |
2,259 | 1,528 | - | - | ||||||||||||||||
Y Class |
- | 1 | - | - | ||||||||||||||||
Investor Class |
16 | 20 | - | - | ||||||||||||||||
A Class |
4 | 1 | - | - | ||||||||||||||||
C Class |
1 | 2 | - | - | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions paid |
$7,943 | $14,108 | $1,714 | $3,750 | ||||||||||||||||
|
|
|
|
|
|
|
|
*For tax purposes, short-term capital gains are considered ordinary income distributions.
As of April 30, 2012, the components of distributable earnings (deficits) on a tax basis were as follows (in thousands):
High Yield Bond |
Retirement Income and Appreciation |
Intermediate Bond |
Short-Term Bond | |||||||||||||||||
Cost basis of investments for federal income tax purposes |
$ | 146,898 | $ | 154,931 | $ | 369,877 | $ | 180,734 | ||||||||||||
Unrealized appreciation |
6,319 | 9,255 | 15,376 | 1,390 | ||||||||||||||||
Unrealized depreciation |
(6,664) | (1,599) | (491) | (1,520) | ||||||||||||||||
Net unrealized appreciation or (depreciation) |
(345) | 7,656 | 14,885 | (130) | ||||||||||||||||
Undistributed ordinary income |
202 | 515 | 3,311 | 536 | ||||||||||||||||
Accumulated long-term gain or (loss) |
(2,109) | 242 | 1,594 | (7,715) | ||||||||||||||||
Other temporary differences |
(51) | (3) | (10) | (4) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Distributable earnings (deficits) |
$ | (2,303) | $ | 8,410 | $ | 19,780 | $ | (7,313) | ||||||||||||
|
|
|
|
|
|
|
|
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 or (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 or (losses) under U.S. GAAP 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, 2012 (in thousands):
High Yield Bond |
Retirement Income and Appreciation |
Intermediate Bond |
Short-Term Bond | |||||||||||||||||
Paid-in-capital |
$ | (1) | $ | 75 | $ | - | $ | (2) | ||||||||||||
Undistributed net investment income |
1 | 92 | 636 | 160 | ||||||||||||||||
Accumulated net realized gain or (loss) |
- | (166) | (637) | (159) | ||||||||||||||||
Unrealized appreciation or (depreciation) of investments |
- | (1) | 1 | 1 |
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the RIC MOD) was enacted, which changed various technical rules governing the tax treatment of regulated investment
54
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
companies. The changes are generally effective for taxable years beginning after the date of enactment. One of the more prominent changes addresses capital loss carryforwards. Under the RIC MOD, each Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.
Finally, the RIC MOD contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions. Except for the simplification provisions related to RIC qualification, the RIC MOD is effective for taxable years beginning after December 22, 2010. The provisions related to RIC qualification are effective for taxable years for which the extended due date of the tax return is after December 22, 2010.
Losses incurred that will be carried forward under the provisions of the Act for the six months ended April 30, 2012 are as follows (in thousands):
Loss Carryforward Character | ||||||||||||
Fund |
Short-Term | Long Term | Total | |||||||||
High Yield Bond |
$ | - | $ | 139 | $ | 139 | ||||||
Short-Term Bond |
35 | - | 35 |
As of April 30, 2012 the capital loss carryforward positions prior to the provisions of RIC MOD that may be applied against any realized net taxable gains in each succeeding year or until their expiration dates, whichever occurs first, are as follows (in thousands):
Fund | 2014 | 2015 | 2016 | 2017 | Total | |||||||||||||||
High Yield Bond |
$ | - | $ | - | $ | - | $ | 1,970 | $ | 1,970 | ||||||||||
Short-Term Bond |
2,015 | 467 | 5,198 | - | 7,680 |
6. Investment Transactions
The aggregate cost of purchases and proceeds from sales and maturities of long-term investments during the year ended April 30, 2012 were as follows (in thousands):
High Yield Bond |
Retirement Income and Appreciation |
Intermediate Bond |
Short-Term Bond |
|||||||||||||
Purchases (excluding U.S. government securities) |
$ | 80,487 | $ | 48,780 | $ | 514,528 | $ | 19,008 | ||||||||
Sales and maturities (excluding U.S. government securities) |
51,774 | 30,679 | 409,873 | 25,377 | ||||||||||||
Purchases of U.S. government securities |
- | 18,279 | 262,429 | 4,645 | ||||||||||||
Sales and maturities of U.S. government securities |
- | 6,034 | 232,370 | 2,025 |
7. Capital Share Transactions
The tables below summarize the activity in capital shares for each Class of the Funds (shares and dollars in thousands):
55
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
For the Six months Ended April 30, 2012
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
High Yield Bond Fund |
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold |
774 | $ | 6,756 | 3 | $ | 25 | 395 | $ | 3,472 | |||||||||||||||
Reinvestment of dividends |
162 | 1,416 | | 1 | 25 | 218 | ||||||||||||||||||
Shares redeemed |
(712 | ) | (6,198 | )* | | | * | (223 | ) | (1,915 | )* | |||||||||||||
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Net increase in shares outstanding |
224 | $ | 1,974 | 3 | $ | 26 | 197 | $ | 1,775 | |||||||||||||||
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AMR Class | A Class | C Class | ||||||||||||||||||||||
High Yield Bond Fund |
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold |
3,378 | $ | 29,738 | 28 | $ | 251 | 114 | $ | 992 | |||||||||||||||
Reinvestment of dividends |
364 | 3,193 | 1 | 6 | 1 | 9 | ||||||||||||||||||
Shares redeemed |
(1,528 | ) | (13,109 | )* | | | * | (13 | ) | (114 | )* | |||||||||||||
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Net increase in shares outstanding |
2,214 | $ | 19,822 | 29 | $ | 257 | 102 | $ | 887 | |||||||||||||||
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* Net of Redemption Fees |
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Y Class | Investor Class | A Class | ||||||||||||||||||||||
Retirement Income and Appreciation Fund |
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold |
73 | $ | 785 | 2,798 | $ | 30,506 | 54 | $ | 575 | |||||||||||||||
Reinvestment of dividends |
2 | 17 | 241 | 2,592 | 1 | 15 | ||||||||||||||||||
Shares redeemed |
13 | (138 | ) | 2,027 | (21,989 | ) | 3 | (34 | ) | |||||||||||||||
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Net increase in shares outstanding |
88 | $ | 664 | 5,066 | $ | 11,109 | 58 | $ | 556 | |||||||||||||||
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C Class | ||||||||||||||||||||||||
Retirement Income and Appreciation Fund |
Shares | Amount | ||||||||||||||||||||||
Shares sold |
17 | $ | 184 | |||||||||||||||||||||
Reinvestment of dividends |
2 | 18 | ||||||||||||||||||||||
Shares redeemed |
11 | (123 | ) | |||||||||||||||||||||
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Net increase in shares outstanding |
30 | $ | 79 | |||||||||||||||||||||
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Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Intermediate Bond Fund |
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold |
29,913 | $ | 327,286 | 2 | $ | 17 | 925 | $ | 10,136 | |||||||||||||||
Reinvestment of dividends |
713 | 7,822 | | 1 | 8 | 84 | ||||||||||||||||||
Shares redeemed |
(22,322 | ) | (245,961 | ) | (1 | ) | (6 | ) | (72 | ) | (791 | ) | ||||||||||||
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Net increase in shares outstanding |
8,304 | $ | 89,147 | 1 | $ | 12 | 861 | $ | 9,429 | |||||||||||||||
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A Class | C Class | |||||||||||||||||||||||
Intermediate Bond Fund |
Shares | Amount | Shares | Amount | ||||||||||||||||||||
Shares sold |
80 | $ | 869 | 25 | $ | 270 | ||||||||||||||||||
Reinvestment of dividends |
| 5 | | 2 | ||||||||||||||||||||
Shares redeemed |
(63 | ) | (690 | ) | (2 | ) | (18 | ) | ||||||||||||||||
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Net increase in shares outstanding |
17 | $ | 184 | 23 | $ | 254 | ||||||||||||||||||
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Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Short-Term Bond Fund |
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold |
2,122 | $ | 18,489 | | $ | | 545 | $ | 4,744 | |||||||||||||||
Reinvestment of dividends |
175 | 1,520 | | 3 | 17 | 148 | ||||||||||||||||||
Shares redeemed |
(2,283 | ) | (19,867 | ) | (11 | ) | (97 | ) | (1,237 | ) | (10,769 | ) | ||||||||||||
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Net increase (decrease) in shares outstanding |
14 | $ | 142 | (11 | ) | $ | (94 | ) | (675 | ) | $ | (5,877 | ) | |||||||||||
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56
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
A Class | C Class | |||||||||||||||||||||||
Short-Term Bond Fund |
Shares | Amount | Shares | Amount | ||||||||||||||||||||
Shares sold |
94 | $ | 819 | 8 | $ | 70 | ||||||||||||||||||
Reinvestment of dividends |
2 | 13 | | 1 | ||||||||||||||||||||
Shares redeemed |
(12 | ) | (100 | ) | (6 | ) | (53 | ) | ||||||||||||||||
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Net increase in shares outstanding |
84 | $ | 732 | 2 | $ | 18 | ||||||||||||||||||
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For the Year Ended October 31, 2011 | ||||||||||||||||||||||||
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
High Yield Bond Fund |
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold |
1,069 | $ | 9,564 | 1 | $ | 10 | 495 | $ | 4,488 | |||||||||||||||
Reinvestment of dividends |
291 | 2,618 | | | 201 | 1,821 | ||||||||||||||||||
Shares redeemed |
(1,203 | ) | (10,767 | )* | | | * | (5,802 | ) | (53,202 | )* | |||||||||||||
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Net increase (decrease) in shares outstanding |
157 | $ | 1,415 | 1 | $ | 10 | (5,106 | ) | $ | (46,893 | ) | |||||||||||||
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AMR Class | A Class | C Class | ||||||||||||||||||||||
High Yield Bond Fund |
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold |
2,566 | $ | 22,915 | 9 | $ | 82 | 43 | $ | 371 | |||||||||||||||
Reinvestment of dividends |
742 | 6,684 | | 4 | | 5 | ||||||||||||||||||
Shares redeemed |
(4,800 | ) | (43,025 | )* | | (1 | )* | (1 | ) | (8 | )* | |||||||||||||
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Net increase (decrease) in shares outstanding |
(1,492 | ) | $ | (13,426 | ) | 9 | $ | 85 | 42 | $ | 368 | |||||||||||||
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* Net of Redemption Fees |
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Y Class | Investor Class | A Class | ||||||||||||||||||||||
Retirement Income and Appreciation Fund |
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold |
25 | $ | 261 | 4,427 | $ | 47,560 | 55 | $ | 591 | |||||||||||||||
Reinvestment of dividends |
1 | 13 | 300 | 3,228 | 1 | 9 | ||||||||||||||||||
Shares redeemed |
(10 | ) | (103 | ) | (2,778 | ) | (29,805 | ) | | (1 | ) | |||||||||||||
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Net increase in shares outstanding |
16 | $ | 171 | 1,949 | $ | 20,983 | 56 | $ | 599 | |||||||||||||||
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C Class | ||||||||||||||||||||||||
Retirement Income and Appreciation Fund |
Shares | Amount | ||||||||||||||||||||||
Shares sold |
65 | $ | 704 | |||||||||||||||||||||
Reinvestment of dividends |
2 | 14 | ||||||||||||||||||||||
Shares redeemed |
(16 | ) | (170 | ) | ||||||||||||||||||||
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Net increase in shares outstanding |
51 | $ | 548 | |||||||||||||||||||||
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Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Intermediate Bond Fund |
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold |
5,783 | $ | 62,684 | 5 | $ | 53 | 93 | $ | 1,002 | |||||||||||||||
Reinvestment of dividends |
1,295 | 13,905 | 1 | 10 | 14 | 153 | ||||||||||||||||||
Shares redeemed |
(8,216 | ) | (88,876 | ) | (35 | ) | (369 | ) | (112 | ) | (1,210 | ) | ||||||||||||
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Net (decrease) in shares outstanding |
(1,138 | ) | $ | (12,287 | ) | (29 | ) | $ | (306 | ) | (5 | ) | $ | (55 | ) | |||||||||
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A Class | C Class | |||||||||||||||||||||||
Intermediate Bond Fund |
Shares | Amount | Shares | Amount | ||||||||||||||||||||
Shares sold |
55 | $ | 587 | 6 | $ | 61 | ||||||||||||||||||
Reinvestment of dividends |
| 1 | | 3 | ||||||||||||||||||||
Shares redeemed |
(6 | ) | (61 | ) | (9 | ) | (97 | ) | ||||||||||||||||
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Net increase (decrease) in shares outstanding |
49 | $ | 527 | (3 | ) | $ | (33 | ) | ||||||||||||||||
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57
American Beacon FundsSM
Notes to Financial Statements
April 30, 2012 (Unaudited)
Institutional Class | Y Class | Investor Class | ||||||||||||||||||||||
Short-Term Bond Fund |
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Shares sold |
7,973 | $ | 70,089 | 37 | $ | 323 | 2,600 | $ | 22,888 | |||||||||||||||
Reinvestment of dividends |
368 | 3,231 | 1 | 5 | 52 | 456 | ||||||||||||||||||
Shares redeemed |
(5,105 | ) | (44,890 | ) | (4 | ) | (31 | ) | (2,442 | ) | (21,414 | ) | ||||||||||||
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Net increase in shares outstanding |
3,236 | $ | 28,430 | 34 | $ | 297 | 210 | $ | 1,930 | |||||||||||||||
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A Class | C Class | |||||||||||||||||||||||
Short-Term Bond Fund |
Shares | Amount | Shares | Amount | ||||||||||||||||||||
Shares sold |
422 | $ | 3,711 | 68 | $ | 600 | ||||||||||||||||||
Reinvestment of dividends |
1 | 9 | | 2 | ||||||||||||||||||||
Shares redeemed |
(34 | ) | (304 | ) | (26 | ) | (228 | ) | ||||||||||||||||
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Net increase in shares outstanding |
389 | $ | 3,416 | 42 | $ | 374 | ||||||||||||||||||
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58
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59
American Beacon High Yield Bond FundSM
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | Y Class | |||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2012 |
Year Ended October 31, | Six Months Ended April 30, 2012 |
Year Ended October 31, 2011G |
March 1 to October 31, 2010 |
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2011G | 2010 | 2009 | 2008A | 2007 | ||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 8 .68 | $ | 9 .05 | $ | 8 .42 | $ | 6 .77 | $ | 10 .11 | $ | 10 .20 | $ | 8.69 | $ | 9.06 | $ | 8 .63 | ||||||||||||||||||
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Income from investment operations: |
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Net investment income |
0 .34 | 0 .71 | 0 .75 | 0 .79 | 0 .78 | 0 .77 | 0 .30 | 0 .68 | 0 .50 | |||||||||||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
0 .23 | (0 .37 | ) | 0 .63 | 1 .66 | (3 .34 | ) | (0 .09 | ) | 0 .23 | (0 .37 | ) | 0 .43 | |||||||||||||||||||||||
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Total income (loss) from investment operations |
0 .57 | 0 .34 | 1 .38 | 2 .45 | (2 .56 | ) | 0 .68 | 0 .53 | 0 .31 | 0 .93 | ||||||||||||||||||||||||||
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Less distributions: |
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Dividends from net investment income |
(0 .34 | ) | (0 .71 | ) | (0 .75 | ) | (0 .80 | ) | (0 .78 | ) | (0 .77 | ) | (0.30 | ) | (0.68 | ) | (0 .50 | ) | ||||||||||||||||||
Distributions from net realized gains on securities |
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Total distributions |
(0 .34 | ) | (0 .71 | ) | (0 .75 | ) | (0 .80 | ) | (0 .78 | ) | (0 .77 | ) | (0.30 | ) | (0.68 | ) | (0 .50 | ) | ||||||||||||||||||
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Redemption fees added to beneficial interests |
0. 00 | F | 0. 00 | F | 0.00 | F | | | | 0. 00 | F | 0. 00 | F | 0.00 | F | |||||||||||||||||||||
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Net asset value, end of period |
$ | 8 .91 | $ | 8 .68 | $ | 9 .05 | $ | 8 .42 | $ | 6 .77 | $ | 10 .11 | $ | 8 .92 | $ | 8 .69 | $ | 9 .06 | ||||||||||||||||||
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Total return B |
6 .65 | %C | 3 .79 | % | 17.17 | % | 39.06 | % | (27.03 | )% | 6 .85 | % | 6.19 | %C | 3.36 | % | 11.17 | %C | ||||||||||||||||||
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Ratios and supplemental data: |
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Net assets, end of period (in thousands) |
$ | 44,178 | $ | 41,093 | $ | 41,459 | $ | 47,254 | $ | 62,138 | $ | 114,911 | $ | 37 | $ | 11 | $ | 1 | ||||||||||||||||||
Ratios to average net assets (annualized): |
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Expenses, before reimbursements |
0 .89 | % | 0 .88 | % | 0 .79 | % | 0 .79 | % | 0 .85 | % | 0 .86 | % | 1.51 | % | 27.02 | % | 0.82 | %D | ||||||||||||||||||
Expenses, net of reimbursements |
0 .89 | % | 0 .88 | % | 0 .79 | % | 0 .79 | % | 0 .85 | % | 0 .85 | % | 1.50 | % | 1.61 | % | 0.82 | %D | ||||||||||||||||||
Net investment income (loss), before reimbursments |
7 .73 | % | 7 .90 | % | 8 .69 | % | 11.46 | % | 8 .38 | % | 7 .54 | % | 6.91 | % | (18.29 | )% | 8.53 | %D | ||||||||||||||||||
Net investment income, net of reimbursements |
7 .73 | % | 7 .90 | % | 8 .69 | % | 11.46 | % | 8 .38 | % | 7 .55 | % | 6.92 | % | 7 .11 | % | 8.53 | %D | ||||||||||||||||||
Portfolio turnover rate |
42 | %C | 149 | % | 176 | % | 212 | % | 157 | % | 92 | % | 42 | %C | 149 | % | 176 | %E |
A On May 21, 2008, Post Advisory Group, LLC ceased managing a portion of the High Yield Bond Fund and on May 22, 2008 Logan Circle Partners, L.P. began managing a portion of the High Yield Bond Fund.
B 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.
F Amount represents less than $0.01 per share.
G PENN Capital Management Company, Inc. was added as an investment advisor to the High Yield Bond Fund on September 15, 2011.
60
American Beacon High Yield Bond FundSM
Financial Highlights
(For a share outstanding throughout the period)
Investor Class | A Class | C Class | ||||||||||||||||||||||||||||||||||||||||||||
Six Months 2012 |
Year Ended October 31, | Six Months Ended April 30, 2012 |
Year Ended October 31, 2011G |
May 17 to October 31, 2010 |
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011G |
September 1 to October 31, 2010 |
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2011G | 2010 | 2009 | 2008A | 2007 | ||||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
$ | 8.68 | $ | 9 .06 | $ | 8 .42 | $ | 6 .77 | $ | 10 .11 | $ | 10 .21 | $ | 8.69 | $ | 9.08 | $ | 8.67 | $ | 8 .67 | $ | 9.05 | $ | 8.68 | |||||||||||||||||||||||
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0.33 | 0 .69 | 0 .73 | 0 .78 | 0 .75 | 0 .75 | 0 .33 | 0 .69 | 0 .32 | 0 .29 | 0 .63 | 0 .09 | |||||||||||||||||||||||||||||||||||
0.23 | (0 .38 | ) | 0 .64 | 1 .65 | (3 .34 | ) | (0 .10 | ) | 0 .23 | (0.39 | ) | 0 .41 | 0 .23 | (0.39 | ) | 0 .37 | ||||||||||||||||||||||||||||||
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0.56 | 0 .31 | 1 .37 | 2 .43 | (2 .59 | ) | 0 .65 | 0 .56 | 0 .30 | 0 .73 | 0 .52 | 0 .24 | 0 .46 | ||||||||||||||||||||||||||||||||||
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(0.33) | (0 .69 | ) | (0 .73 | ) | (0 .78 | ) | (0 .75 | ) | (0 .75 | ) | (0.33 | ) | (0.69 | ) | (0.32 | ) | (0 .29 | ) | (0.62 | ) | (0.09 | ) | ||||||||||||||||||||||||
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(0.33) | (0 .69 | ) | (0 .73 | ) | (0 .78 | ) | (0 .75 | ) | (0 .75 | ) | (0.33 | ) | (0.69 | ) | (0.32 | ) | (0 .29 | ) | (0.62 | ) | (0.09 | ) | ||||||||||||||||||||||||
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0.00F | 0. 00 | F | 0.00 | F | | | | 0. 00 | F | 0. 00 | F | 0. 00 | F | 0. 00 | F | 0. 00 | F | 0.00 | F | |||||||||||||||||||||||||||
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|||||||||||||||||||||||
$ | 8.91 | $ | 8 .68 | $ | 9 .06 | $ | 8 .42 | $ | 6 .77 | $ | 10 .11 | $ | 8 .92 | $ | 8 .69 | $ | 9 .08 | $ | 8 .90 | $ | 8 .67 | $ | 9 .05 | |||||||||||||||||||||||
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|||||||||||||||||||||||
6.53%C | 3.41% | 17.00% | 38.70% | (27.24)% | 6 .52% | 6.53% | C | 3.31% | 8.66% | C | 6.15% | C | 2.67% | 5.31% | C | |||||||||||||||||||||||||||||||
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$9,515 | $7,560 | $54,142 | $90,736 | $13,949 | $28,758 | $382 | $117 | $40 | $1,321 | $403 | $37 | |||||||||||||||||||||||||||||||||||
1.13% | 1.09% | 1 .04% | 1 .01% | 1 .10% | 1 .08% | 1.42% | 3.93% | 1.30% | D | 2.11% | 3.15% | 2.29% | D | |||||||||||||||||||||||||||||||||
1.13% | 1.09% | 1 .04% | 1 .01% | 1 .10% | 1 .08% | 1.11% | 1.11% | 1.12% | D | 1.85% | 1.85% | 1.87% | D | |||||||||||||||||||||||||||||||||
7.48% | 7.75% | 8 .48% | 9 .36% | 8 .06% | 7 .32% | 7.03% | 4.74% | 6.93% | D | 6.35% | 5.53% | 4.97% | D | |||||||||||||||||||||||||||||||||
7.48% | 7.75% | 8 .48% | 9 .36% | 8 .06% | 7 .32% | 7.33% | 7.56% | 7.11% | D | 6.60% | 6.83% | 5.40% | D | |||||||||||||||||||||||||||||||||
42%C | 149% | 176% | 212% | 157% | 92% | 42% | C | 149% | 176% | E | 42% | C | 149% | 176% | E |
61
American Beacon High Yield Bond FundSM
Financial Highlights
(For a share outstanding throughout the period)
AMR Class | ||||||||||||||||||||||||
Six Months Ended April 30, 2012 |
Year Ended October 31, | September 4 to October 31, 2007 |
||||||||||||||||||||||
2011G | 2010 | 2009 | 2008A | |||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 8.68 | $ | 9.06 | $ | 8.42 | $ | 6.77 | $ | 10.11 | $ | 9.94 | ||||||||||||
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Income from investment operations: |
||||||||||||||||||||||||
Net investment income |
0.35 | 0.74 | 0.78 | 0.81 | 0.80 | 0.12 | ||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
0.23 | (0.38 | ) | 0.63 | 1.65 | (3.34 | ) | 0.17 | ||||||||||||||||
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Total income (loss) from investment operations |
0.58 | 0.36 | 1.41 | 2.46 | (2.54 | ) | 0.29 | |||||||||||||||||
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Less distributions: |
||||||||||||||||||||||||
Dividends from net investment income |
(0.35 | ) | (0.74 | ) | (0.77 | ) | (0.81 | ) | (0.80 | ) | (0.12 | ) | ||||||||||||
Distributions from net realized gains on securities |
- | - | - | - | - | - | ||||||||||||||||||
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Total distributions |
(0.35 | ) | (0.74 | ) | (0.77 | ) | (0.81 | ) | (0.80 | ) | (0.12 | ) | ||||||||||||
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Redemption fees added to beneficial interests |
0.00 | H | 0.00 | H | 0.00 | H | - | - | - | |||||||||||||||
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Net asset value, end of period |
$ | 8.91 | $ | 8.68 | $ | 9.06 | $ | 8.42 | $ | 6.77 | $ | 10.11 | ||||||||||||
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Total return B |
6.81 | %C | 3.96 | % | 17.59 | % | 39.41 | % | (26.84 | )% | 2.94 | %C | ||||||||||||
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Ratios and supplemental data: |
||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 94,974 | $ | 73,298 | $ | 89,992 | $ | 92,659 | $ | 44,060 | $ | 82,322 | ||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||
Expenses, before reimbursements |
0.60 | % | 0.60 | % | 0.54 | % | 0.53 | % | 0.58 | % | 0.61 | %D | ||||||||||||
Expenses, net of reimbursements |
0.60 | % | 0.60 | % | 0.54 | % | 0.53 | % | 0.58 | % | 0.61 | %D | ||||||||||||
Net investment income (loss), before reimbursments |
7.99 | % | 8.18 | % | 8.91 | % | 10.34 | % | 8.64 | % | 7.54 | %D | ||||||||||||
Net investment income, net of reimbursements |
7.99 | % | 8.18 | % | 8.91 | % | 10.34 | % | 8.64 | % | 7.54 | %D | ||||||||||||
Portfolio turnover rate |
42 | %C | 149 | % | 176 | % | 212 | % | 157 | % | 92 | %F |
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 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.
F Portfolio turnover rate is for the period from November 1, 2006 through October 31, 2007.
G PENN Capital Management Company, Inc. was added as an investment advisor to the High Yield Bond Fund on September 15, 2011.
H Amount represents less than $0.01 per share.
See accompanying notes
62
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63
American Beacon Retirement Income and Appreciation FundSM
Financial Highlights
(For a share outstanding throughout the period)
Y Class | Investor Class | |||||||||||||||||||||||||||
Six | Year | March | Six | |||||||||||||||||||||||||
Months | Ended | 1 to | Months | |||||||||||||||||||||||||
Ended | October | October | Ended | Year Ended October 31, | ||||||||||||||||||||||||
April 30, | 31, | 31, | April 30, | |||||||||||||||||||||||||
2012 | 2011 | 2010 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 10.83 | $ | 10.80 | $ | 10.31 | $ | 10 .84 | $ | 10 .81 | $ | 10 .25 | $ | 8 .80 | ||||||||||||||
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Income from investment operations: |
||||||||||||||||||||||||||||
Net investment income |
0 .12 | 0 .26 | 0 .20 | 0 .10 | 0 .27 | 0 .36 | 0 .32 | |||||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
0 .14 | 0 .05 | 0 .49 | 0 .13 | 0 .02 | 0 .51 | 1 .53 | |||||||||||||||||||||
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|||||||||||||||
Total income (loss) from investment operations |
0 .26 | 0 .31 | 0 .69 | 0 .23 | 0 .29 | 0 .87 | 1 .85 | |||||||||||||||||||||
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Less distributions: |
||||||||||||||||||||||||||||
Dividends from net investment income |
(0 .13) | (0 .28) | (0 .20) | (0 .11) | (0 .26) | (0 .31) | (0 .40) | |||||||||||||||||||||
Distributions from net realized gains on securities |
(0 .06) | - | - | (0 .06) | - | - | - | |||||||||||||||||||||
Return of capital |
- | - | - | - | - | - | - F | |||||||||||||||||||||
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Total distributions |
(0 .19) | (0 .28) | (0 .20) | (0 .17) | (0 .26) | (0 .31) | (0 .40) | |||||||||||||||||||||
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Redemption fees added to beneficial interests |
- | - | - | - | - | - | - | |||||||||||||||||||||
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Net asset value, end of period |
$ | 10.90 | $ | 10.83 | $ | 10.80 | $ | 10 .90 | $ | 10 .84 | $ | 10 .81 | $ | 10 .25 | ||||||||||||||
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Total return A E |
2.63%B | 2.96% | 6.78%B | 2 .46%B | 2 .71% | 8 .60% | 21.50% | |||||||||||||||||||||
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Ratios and supplemental data: |
||||||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$1,222 | $539 | $367 | $159,329 | $147,415 | $126,022 | $93,727 | |||||||||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||||||
Expenses, before reimbursments |
0.83% | 1.80% | 0.80%C | 1 .09% | 1 .10% | 1 .08% | 1 .01% | |||||||||||||||||||||
Expenses, net of reimbursements |
0 .82% | 0.84% | 0.80%C | 1 .09% | 1 .10% | 1 .08% | 1 .01% | |||||||||||||||||||||
Net investment income, before reimbursements |
2.28% | 1.45% | 2.74%C | 2 .05% | 2 .15% | 2 .79% | 3 .86% | |||||||||||||||||||||
Net investment income, net of reimbursements |
2 .28% | 2 .41% | 2.74%C | 2 .05% | 2 .15% | 2 .79% | 3 .86% | |||||||||||||||||||||
Portfolio turnover rate |
21%B | 54% | 51%D | 21%B | 54% | 51% | 53% |
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 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.
F The tax return of capital is calculated based on outstanding shares at the time of the distribution. Amounts are less than $0.01 per share.
64
American Beacon Retirement Income and Appreciation FundSM
Financial Highlights
(For a share outstanding throughout the period)
|
A Class | C Class | ||||||||||||||||||||||||||||
|
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
May 17 to October 31, 2010 |
Six Months Ended April 30, 2012 |
Year Ended October 31, 2011 |
September 1 to October 31, 2010 |
||||||||||||||||||||||||
2008 | 2007 | |||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||
$ | 10.50 | $ | 10.25 | $ | 10.85 | $ | 10.81 | $ | 10.37 | $ | 10.85 | $ | 10.82 | $ | 10.61 | |||||||||||||||
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0 .41 | 0.36 | 0.10 | 0 .23 | 0.13 | 0 .05 | 0.15 | 0.03 | |||||||||||||||||||||||
(1.39) | 0.32 | 0.15 | 0 .05 | 0.44 | 0.15 | 0.04 | 0.20 | |||||||||||||||||||||||
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(0.98) | 0.68 | 0.25 | 0 .28 | 0.57 | 0.20 | 0.19 | 0.23 | |||||||||||||||||||||||
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(0.49) | (0.42) | (0.11) | (0 .24) | (0.13) | (0.06) | (0.16) | (0.02) | |||||||||||||||||||||||
(0.23) | (0.01) | (0.06) | - | - | (0.06) | - | - | |||||||||||||||||||||||
- | - | - | - | - | - | - | - | |||||||||||||||||||||||
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(0.72) | (0.43) | (0.17) | (0 .24) | (0 .13) | (0.12) | (0.16) | (0.02) | |||||||||||||||||||||||
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- | - | - | - | - | - | - | - | |||||||||||||||||||||||
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$ | 8.80 | $ | 10.50 | $ | 10.93 | $ | 10.85 | $ | 10.81 | $ | 10.93 | $ | 10.85 | $ | 10.82 | |||||||||||||||
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(10.02)% | 6.75% | 2.50%B | 2.61% | 5.52%B | 2.04%B | 1.75% | 2.19%B | |||||||||||||||||||||||
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$100,469 | $99,789 | $1,342 | $770 | $166 | $1,679 | $1,587 | $1,035 | |||||||||||||||||||||||
0.92% | 0.94% | 1.24% | 2.00% | 1.20%C | 1.99% | 1.99% | 2.33%C | |||||||||||||||||||||||
0.92% | 0.94% | 1.14% | 1.15% | 1.14%C | 1.96% | 1.94% | 1.96%C | |||||||||||||||||||||||
3.64% | 3.69% | 1.89% | 1.21% | 2.03%C | 1.16% | 1.25% | 1.40%C | |||||||||||||||||||||||
3.64% | 3.69% | 1.99% | 2.06% | 2.10%C | 1.19% | 1.30% | 1.77%C | |||||||||||||||||||||||
76% | 103% | 21%B | 54% | 51%D | 21%B | 54% | 51%D |
65
American Beacon Intermediate Bond FundSM
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, | ||||||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2012 | ||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.99 | $ | 11.10 | $ | 10.69 | $ | 9.61 | $ | 10.10 | $ | 10.02 | $ | 11.03 | ||||||||||||||
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Income from investment operations: | ||||||||||||||||||||||||||||
Net investment income |
0.14 | 0.33 | 0.39 | 0.46 | 0.50 | 0.50 | 0.12 | |||||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
0.10 | 0.10 | 0.40 | 1.07 | (0.51) | 0.07 | 0.10 | |||||||||||||||||||||
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Total income (loss) from investment operations |
0.24 | 0.43 | 0.79 | 1.53 | (0.01) | 0.57 | 0.22 | |||||||||||||||||||||
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Less distributions: |
||||||||||||||||||||||||||||
Dividends from net investment income |
(0.14) | (0.35) | (0.38) | (0.45) | (0.48) | (0.49) | (0.12) | |||||||||||||||||||||
Distributions from net realized gains on securities |
(0.05) | (0.19) | - | - | - | - | (0.05) | |||||||||||||||||||||
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Total distributions |
(0.19) | (0.54) | (0.38) | (0.45) | (0.48) | (0.49) | (0.17) | |||||||||||||||||||||
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Redemption fees added to beneficial interests | - | - | - | - | - | - | - | |||||||||||||||||||||
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Net asset value, end of period | $ | 11.04 | $ | 10.99 | $ | 11.10 | $ | 10.69 | $ | 9.61 | $ | 10.10 | $ | 11.08 | ||||||||||||||
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Total return A | 2.19%B | 4.11% | 7.56% | 16.17% | (0.26)% | 5.83% | 2.02%B | |||||||||||||||||||||
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Ratios and supplemental data: |
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Net assets, end of period (in thousands) |
$368,269 | $275,234 | $290,734 | $210,983 | $147,634 | $109,674 | $72 | |||||||||||||||||||||
Ratios to average net assets (annualized): |
||||||||||||||||||||||||||||
Expenses, before reimbursements |
0.31% | 0.35% | 0.33% | 0.32% | 0.30% | 0.34% | 0.84% | |||||||||||||||||||||
Expenses, net of reimbursements |
0.31% | 0.35% | 0.33% | 0.32% | 0.30% | 0.34% | 0.65% | |||||||||||||||||||||
Net investment income, before reimbursments |
2.25% | 3.12% | 3.39% | 4.31% | 4.70% | 4.86% | 1.81% | |||||||||||||||||||||
Net investment income, net of reimbursements |
2.25% | 3.12% | 3.39% | 4.32% | 4.70% | 4.86% | 2.00% | |||||||||||||||||||||
Portfolio turnover rate |
101%B | 75% | 96% | 157% | 105% | 85% | 101%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 Portfolio turnover rate is for the period from November 1, 2008 through October 31, 2009.
66
American Beacon Intermediate Bond FundSM
Financial Highlights
(For a share outstanding throughout the period)
|
Investor Class | A Class | C Class | |||||||||||||||||||||||||||||||||||||||||||
Year | March | Six | March | Six | Year | May | Six | Year | September | |||||||||||||||||||||||||||||||||||||
Ended | 1 to | Months | Year Ended October | 02 to | Months | Ended | 17 to | Months | Ended | 1 to | ||||||||||||||||||||||||||||||||||||
October | October | Ended | October | Ended | October | October | Ended | October | October | |||||||||||||||||||||||||||||||||||||
31, | 31, | April 30, | 31, | 31, | April 30, | 31, | 31, | April 30, | 31, | 31, | ||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2012 | 2011 | 2010 | 2009 | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
$ 11.10 | $ | 10.69 | $ | 10.97 | $ | 11.08 | $ | 10.68 | $ | 10.14 | $ | 10.96 | $ | 11.07 | $ | 10.74 | $ | 10.97 | $ | 11.08 | $ | 11.05 | ||||||||||||||||||||||||
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0.27 | 0.23 | 0.13 | 0.29 | 0.33 | 0.27 | 0.09 | 0.28 | 0.13 | 0.06 | 0.19 | 0.03 | |||||||||||||||||||||||||||||||||||
0.17 | 0.41 | 0.09 | 0.10 | 0.41 | 0.54 | 0.12 | 0.09 | 0.33 | 0.10 | 0.10 | 0.03 | |||||||||||||||||||||||||||||||||||
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0.44 | 0.64 | 0.22 | 0.39 | 0.74 | 0.81 | 0.21 | 0.37 | 0.46 | 0.16 | 0.29 | 0.06 | |||||||||||||||||||||||||||||||||||
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(0.32) | (0.23) | (0.12) | (0.31) | (0.34) | (0.27) | (0.10) | (0.29) | (0.13) | (0.06) | (0.21) | (0.03) | |||||||||||||||||||||||||||||||||||
(0.19) | - | (0.05) | (0.19) | - | - | (0.05) | (0.19) | - | (0.05) | (0.19) | - | |||||||||||||||||||||||||||||||||||
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(0.51) | (0.23) | (0.17) | (0.50) | (0.34) | (0.27) | (0.15) | (0.48) | (0.13) | (0.11) | (0.40) | (0.03) | |||||||||||||||||||||||||||||||||||
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$ 11.03 | $ | 11.10 | $ | 11 .02 | $ | 10.97 | $ | 11.08 | $ | 10.68 | $ | 11.02 | $ | 10.96 | $ | 11.07 | $ | 11.02 | $ | 10.97 | $ | 11.08 | ||||||||||||||||||||||||
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4.19% | 6.03%B | 1.95%B | 3.65% | 7.01% | 8.05%B | 1.94%B | 3.45% | 4.31%B | 1.47%B | 2.70% | 0.56%B | |||||||||||||||||||||||||||||||||||
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$60 | $382 | $13,236 | $3,729 | $3,829 | $2,213 | $774 | $584 | $46 | $543 | $286 | $325 | |||||||||||||||||||||||||||||||||||
0.73% | 0.67%C | 0 .81% | 0.86% | 0.83% | 1.22%C | 1.07% | 1.13% | 1.05%C | 1.83% | 1.86% | 2.09%C | |||||||||||||||||||||||||||||||||||
0.65% | 0.64%C | 0 .78% | 0.79% | 0.76% | 0.81%C | 0.99% | 0.99% | 0.95%C | 1.73% | 1.72% | 1.74%C | |||||||||||||||||||||||||||||||||||
2.74% | 2.58%C | 1 .89% | 2.59% | 2.88% | 3.33%C | 1.51% | 2.31% | 2.15%C | 0.82% | 1.61% | 0.88%C | |||||||||||||||||||||||||||||||||||
2.82% | 2.60%C | 1 .91% | 2.66% | 2.95% | 3.74%C | 1.60% | 2.46% | 2.25%C | 0.92% | 1.75% | 1.23%C | |||||||||||||||||||||||||||||||||||
75% | 96%D | 101%B | 75% | 96% | 157%E | 101%B | 75% | 96%D | 101%B | 75% | 96%D |
67
American Beacon Short-Term Bond FundSM
Financial Highlights
(For a share outstanding throughout the period)
Institutional Class | ||||||||||||||||||||||||
Six Months Ended April 30, |
Year Ended October 31, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 8 .71 | $ | 8 .89 | $ | 8 .83 | $ | 8 .58 | $ | 8 .79 | $ | 8 .74 | ||||||||||||
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Income from investment operations: |
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Net investment income (loss) |
0 .07 | 0 .26 | 0 .23 | 0 .22A | 0 .35A | 0 .39A | ||||||||||||||||||
Net gains (losses) from securities (both realized and unrealized) |
0 .05 | (0 .25) | 0 .10 | 0 .33 | (0 .15) | 0 .09 | ||||||||||||||||||
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Total income (loss) from investment operations |
0 .12 | 0 .01 | 0 .33 | 0 .55 | 0 .20 | 0 .48 | ||||||||||||||||||
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Less distributions: |
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Dividends from net investment income |
(0 .09) | (0 .19) | (0 .27) | (0 .30) | (0 .41) | (0 .43) | ||||||||||||||||||
Distributions from net realized gains on securities |
- | - | - | - | - | - | ||||||||||||||||||
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Total distributions |
(0 .09) | (0 .19) | (0 .27) | (0 .30) | (0 .41) | (0 .43) | ||||||||||||||||||
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Net asset value, end of period |
$ | 8 .74 | $ | 8 .71 | $ | 8 .89 | $ | 8 .83 | $ | 8 .58 | $ | 8 .79 | ||||||||||||
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Total return B |
1 .33%C | 0 .17% | 3 .78% | 6 .56% | 2 .21% | 5 .61% | ||||||||||||||||||
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Ratios and supplemental data: |
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Net assets, end of period (in thousands) |
$ | 157,563 | $ | 156,937 | $ | 131,314 | $ | 124,791 | $ | 255,725 | $ | 89,427 | ||||||||||||
Ratios to average net assets (annualized): |
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Expenses, before reimbursements |
0 .35% | 0 .37% | 0 .35% | 0 .33% | 0 .31% | 0 .37% | ||||||||||||||||||
Expenses, net of reimbursements |
0 .35% | 0 .37% | 0 .35% | 0 .33% | 0 .31% | 0 .37% | ||||||||||||||||||
Net investment income (loss), before reimbursements |
1 .61% | 1 .73% | 2 .27% | 2 .61% | 3 .75% | 4 .48% | ||||||||||||||||||
Net investment income (loss), net of reimbursements |
1 .61% | 1 .73% | 2 .27% | 2 .62% | 3 .75% | 4 .48% | ||||||||||||||||||
Portfolio turnover rate |
11%C | 65% | 60% | 140% | 21% | 40% |
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.
68
American Beacon Short-Term Bond FundSM
Financial Highlights
(For a share outstanding throughout the period)
Y Class | Investor Class | A Class | C Class | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six | Year | March | Six | Six | Year | May | Six | Year | September | |||||||||||||||||||||||||||||||||||||||||||||||||
Months | Ended | 1 to | Months | Months | Ended | 17 to | Months | Ended | 1 to | |||||||||||||||||||||||||||||||||||||||||||||||||
Ended | October | October | Ended | Ended | October | October | Ended | October | October | |||||||||||||||||||||||||||||||||||||||||||||||||
April 30, | 31, | 31, | April 30, | Year Ended October 31, | April 30, | 31, | 31, | April 30, | 31, | 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 8.73 | $ | 8 .90 | $ | 8 .84 | $ | 8 .72 | $ | 8 .89 | $ | 8 .84 | $ | 8 .59 | $ | 8 .81 | $ | 8 .76 | $ | 8 .71 | $ | 8 .89 | $ | 8 .84 | $ | 8 .72 | $ | 8 .90 | $ | 8 .88 | |||||||||||||||||||||||||||||
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0.04 | 0 .15 | 0 .15 | (0 .07) | 0 .14 | 0 .08 | 0 .20A | 0 .29A | 0 .35A | 0 .05 | 0 .15 | 0 .09 | 0 .02 | 0 .12 | (0 .04) | ||||||||||||||||||||||||||||||||||||||||||||
0.06 | (0 .15) | 0 .08 | 0 .17 | (0 .15) | 0 .21 | 0 .34 | (0 .15) | 0 .09 | 0 .04 | (0 .18) | 0 .07 | 0 .04 | (0 .21) | 0 .08 | ||||||||||||||||||||||||||||||||||||||||||||
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0.10 | 0 .00 | 0 .23 | 0 .10 | (0 .01) | 0 .29 | 0 .54 | 0 .14 | 0 .44 | 0 .09 | (0 .03) | 0 .16 | 0 .06 | (0 .09) | 0 .04 | ||||||||||||||||||||||||||||||||||||||||||||
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(0.07) | (0 .17) | (0 .17) | (0 .07) | (0 .16) | (0 .24) | (0 .29) | (0 .36) | (0 .39) | (0 .06) | (0 .15) | (0 .11) | (0 .03) | (0 .09) | (0 .02) | ||||||||||||||||||||||||||||||||||||||||||||
- | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
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(0.07) | (0 .17) | (0 .17) | (0 .07) | (0 .16) | (0 .24) | (0 .29) | (0 .36) | (0 .39) | (0 .06) | (0 .15) | (0 .11) | (0 .03) | (0 .09) | (0 .02) | ||||||||||||||||||||||||||||||||||||||||||||
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$ | 8.76 | $ | 8 .73 | $ | 8 .90 | $ | 8 .75 | $ | 8 .72 | $ | 8 .89 | $ | 8 .84 | $ | 8 .59 | $ | 8 .81 | $ | 8 .74 | $ | 8 .71 | $ | 8 .89 | $ | 8 .75 | $ | 8 .72 | $ | 8 .90 | |||||||||||||||||||||||||||||
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1.19%C | 0 .04% | 2.55%C | 1 .11%C | (0.12)% | 3 .33% | 6 .34% | 1.54% | 5 .08% | 1.08%C | (0 .33)% | 1.78%C | 0 .71%C | (1 .00)% | 0 .48%C | ||||||||||||||||||||||||||||||||||||||||||||
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$250 | $344 | $51 | $18,734 | $24,557 | $23,175 | $30,402 | $7,733 | $2,976 | $4,171 | $3,428 | $44 | $390 | $371 | $1 | ||||||||||||||||||||||||||||||||||||||||||||
1.31% | 1 .43% | 0.65%D | 0 .86% | 0 .90% | 0 .86% | 0 .85% | 0.88% | 0.98% | 1 .09% | 1 .38% | 1.02%D | 2 .00% | 2 .47% | 2 .28%D | ||||||||||||||||||||||||||||||||||||||||||||
0.63% | 0.60% | 0.64%D | 0 .79% | 0 .78% | 0 .67% | 0 .54% | 0.85% | 0.87% | 0.85% | 0 .84% | 0.81%D | 1 .59% | 1 .55% | 1.60%D | ||||||||||||||||||||||||||||||||||||||||||||
0.65% | 0 .57% | 1.45%D | 1 .09% | 1 .18% | 1 .75% | 1 .89% | 3.16% | 3.81% | 0 .86% | 0 .49% | 0.49%D | (0.05)% | (0.43)% | (3.57)%D | ||||||||||||||||||||||||||||||||||||||||||||
1.33% | 1 .40% | 1.47%D | 1 .16% | 1 .30% | 1 .94% | 2 .20% | 3.19% | 3.91% | 1 .10% | 1 .03% | 0.69%D | 0 .37% | 0 .49% | (2.88)%D | ||||||||||||||||||||||||||||||||||||||||||||
11%C | 65% | 60%E | 11%C | 65% | 60% | 140% | 21% | 40% | 11%C | 65% | 60%E | 11%C | 65% | 60%E |
69
Delivery of Documents
eDelivery is NOW AVAILABLE- Stop traditional mail delivery and receive your
shareholder reports and summary prospectus on-line. Sign up at
www.americanbeaconfunds.com
If you invest in the Fund through a financial institution, you may be able to receive the Funds 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 institutions name or contact your financial institution directly.
To obtain more information about the Fund:
![]() |
![]() |
|||||||||||||||
By E-mail: american_beacon.funds@ambeacon.com |
On the Internet: 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 Funds Forms N-Q are available on the SECs website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SECs Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-1520. Information regarding the operation of the SECs Public Reference Room may be obtained by calling (202) 551-8090. A complete schedule of the Funds 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 Funds Statement of Additional Information, is available free of charge on the Funds website (www.americanbeaconfunds.com) and by calling 1-800-967-9009 or by accessing the SECs website at www.sec.gov. The Funds proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Funds Forms N-PX are available on the SECs website at www.sec.gov. The Funds proxy voting record may also be obtained by calling 1-800-967- 9009. |
Fund Service Providers:
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 High Yield Bond Fund, American Beacon Retirement Income and Appreciation Fund, American Beacon Intermediate Bond Fund and American Beacon Short-Term Bond Fund are service marks of American Beacon Advisors, Inc.
SAR 04/12
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.
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 Trusts 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 Trusts 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 Trusts 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 6, 2012 |
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 6, 2012 |
By /s/ Melinda G. Heika |
Melinda G. Heika |
Treasurer |
American Beacon Funds |
Date: July 6, 2012 |
For period ended 04/30/2012
Registrant Name: American Beacon Funds
File Number: 811-4984
EXHIBIT 99.CERT
I, Melinda G. Heika, certify that:
1. I have reviewed this report on Form N-CSR of American Beacon Funds;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: July 6, 2012 | /s/ Melinda G. Heika | |
Melinda G. Heika | ||
Treasurer | ||
American Beacon Funds |
I, Gene L. Needles, Jr., certify that:
1. I have reviewed this report on Form N-CSR of American Beacon Funds;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: July 6, 2012 | /s/ Gene L. Needles, Jr. | |
Gene L. Needles, Jr. | ||
President | ||
American Beacon Funds |
For period ended 04/30/2012
Registrant Name: American Beacon Funds
File Number: 811-4984
EXHIBIT 99.906CERT
Gene L. Needles, Jr. and Melinda G. Heika, respectively, the President and Treasurer of the American Beacon Funds (the Registrant), each certify to the best of his or her knowledge and belief that:
1. the Registrants report on Form N-CSR for the period ended April 30, 2012 (the Form N-CSR) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and
2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
/s/ Gene L. Needles, Jr. |
/s/ Melinda G. Heika | |
Gene L. Needles, Jr. |
Melinda G. Heika | |
President |
Treasurer | |
American Beacon Funds |
American Beacon Funds |
Date: July 6, 2012
A signed original of this written statement required by Section 906 has been provided to American Beacon Funds and will be retained by American Beacon Funds and furnished to the Securities and Exchange Commission or its staff upon request.
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