N-Q 1 yacktman_nq.htm QUARTERLY NOTICE OF PORTFOLIO HOLDINGS yacktman_nq.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
 



Investment Company Act file number  811-06628


The Yacktman Funds, Inc.
(Exact name of registrant as specified in charter)


6300 Bridgeport Parkway
Building One, Suite 320
Austin, TX 78730
(Address of principal executive offices) (Zip code)


Donald A. Yacktman
c/o Yacktman Asset Management Co.
6300 Bridgeport Parkway
Building One, Suite 320
Austin, TX 78730
(Name and address of agent for service)


512-767-6700
Registrant's telephone number, including area code



Date of fiscal year end: December 31



Date of reporting period:  March 31, 2007


Item 1. Schedule of Investments.
 
 
The Yacktman Fund
            
Schedule of Investments
            
March 31, 2007
            
(Unaudited)
            
   
Shares
    
Value
  
COMMON STOCKS - 75.82%
            
Banks - 1.35%
            
U.S. Bancorp
    
150,000
     $
5,245,500
  
Beverages - 17.57%
                
Anheuser-Busch Cos., Inc. (b)
    
110,000
      
5,550,600
  
Coca-Cola Co.
    
820,000
      
39,360,000
  
PepsiCo, Inc. (b)
    
370,000
      
23,517,200
  
             
68,427,800
  
Commercial Services & Supplies - 0.97%
                
H&R Block, Inc. (b)
    
180,000
      
3,787,200
  
Diversified Financials - 6.77%
                
AmeriCredit Corp. (a) (b)
    
700,000
      
16,002,000
  
Federal Home Loan Mortgage Corp. (b)
    
110,000
      
6,543,900
  
Federal National Mortgage Association (b)
    
70,000
      
3,820,600
  
             
26,366,500
  
Food Products - 9.53%
                
Kraft Foods, Inc. (b)
    
300,000
      
9,498,000
  
Lancaster Colony Corp. (b)
    
442,058
      
19,534,543
  
Wm. Wrigley Jr. Co. (b)
    
159,000
      
8,097,870
  
             
37,130,413
  
Household Durables - 0.73%
                
Furniture Brands International, Inc. (b)
    
180,000
      
2,840,400
  
Household Products - 6.20%
                
Clorox Co. (b)
    
110,000
      
7,005,900
  
Colgate-Palmolive Co.
    
75,000
      
5,009,250
  
Henkel Ltd. Partnership - ADR
    
57,879
      
7,743,087
  
Unilever NV - ADR (b)
    
150,000
      
4,383,000
  
             
24,141,237
  
Industrial Conglomerates - 2.84%
                
Tyco International Ltd.
    
350,000
      
11,042,500
  
Insurance - 3.76%
                
American International Group, Inc. (b)
    
90,000
      
6,049,800
  
Marsh & McLennan Cos., Inc.
    
80,000
      
2,343,200
  
MBIA, Inc. (b)
    
40,000
      
2,619,600
  
MGIC Investment Corp. (b)
    
30,000
      
1,767,600
  
Quanta Capital Holdings Ltd. (a)
    
900,000
      
1,881,000
  
             
14,661,200
  
Internet Retail - 1.27%
                
eBay, Inc. (a) (b)
    
149,000
      
4,939,350
  
IT Services - 1.11%
                
First Data Corp.
    
160,000
      
4,304,000
  
Media - 8.33%
                
Interpublic Group of Cos., Inc. (a) (b)
    
481,155
      
5,923,018
  
Liberty Media Holding Corp., Capital Series A (a)
    
57,000
      
6,303,630
  
Liberty Media Holding Corp., Interactive Series A (a) (b)
    
572,486
      
13,636,617
  
Viacom, Inc., Class B (a)
    
160,000
      
6,577,600
  
             
32,440,865
  
Pharmaceuticals - 6.13%
                
Bristol-Myers Squibb Co.
    
150,000
      
4,164,000
  
Johnson & Johnson (b)
    
130,000
      
7,833,800
  
Pfizer, Inc.
    
470,000
      
11,872,200
  
             
23,870,000
  
Software - 5.85%
                
Microsoft Corp. (b)
    
818,000
      
22,797,660
  
Specialty Retail - 2.28%
                
Home Depot, Inc. (b)
    
50,000
      
1,837,000
  
Wal-Mart Stores, Inc.
    
150,000
      
7,042,500
  
             
8,879,500
  
Tobacco - 1.13%
                
Altria Group, Inc.
    
50,000
      
4,390,500
  
TOTAL COMMON STOCKS (Cost $216,553,804)
            
295,264,625
  
   
Principal
          
   
Amount
    
Value
  
SHORT TERM INVESTMENTS - 54.51%
                
Commercial Paper - 23.66%
                
American Express
                
    5.120%, 04/04/2007
   $
18,470,000
      
18,462,119
  
General Electric
                
    5.120%, 04/04/2007
    
18,470,000
      
18,462,119
  
Intesa Funding LLC
                
    5.220%, 04/02/2007
    
18,385,000
      
18,382,360
  
Prudential
                
    5.140%, 04/04/2007
    
18,470,000
      
18,462,089
  
Rabobank USA
                
    5.220%, 04/02/2007
    
18,385,000
      
18,382,360
  
             
92,151,047
  
Demand Notes - 0.62%
                
US Bancorp
                
    5.070%
    
2,415,117
      
2,415,117
  
Other Short-Term Investments - 30.23%
                
Securities Lending Investment Account
            
117,721,780
  
TOTAL SHORT TERM INVESTMENTS (Cost $212,287,944)
            
212,287,944
  
Total Investments  (Cost $428,841,749) - 130.33%
            
507,552,569
  
Liabilities in Excess of Other Assets - (0.10)%
             (381,453 )
Less Liabilities for Collateral on Securities Loaned - (30.23)%
       (117,721,780 )
TOTAL NET ASSETS - 100.00%
           $
389,449,336
  
                 
                 
Percentages are stated as a percent of net assets.
      
             
ADR
American Depository Receipt
      
(a)
Non Income Producing
        
(b)
All or a portion of the security has been committed for securities lending.
             
             
 
The cost basis of investments for federal income tax purposes at March 31, 2007 was as follows*:
             
 
Cost of investments
$428,841,749
      
 
Gross unrealized appreciation
79,986,592
      
 
Gross unrealized depreciation
(1,275,772)
      
 
Net unrealized appreciation
$78,710,820
      
             
*
Because tax adjustments are calculated annually, the above table does not reflect tax adjustments.  For the
 
previous fiscal year's federal income tax information, please refer to the Notes to Financial Statements section
 
in the Fund's most recent semi-annual or annual report.
  
             
             
 
 
 
 
 
The Yacktman Focused Fund
            
Schedule of Investments
            
March 31, 2007
            
(Unaudited)
            
   
Shares
    
Value
  
COMMON STOCKS - 76.02%
            
Beverages - 20.57%
            
Coca-Cola Co.
    
225,000
     $
10,800,000
  
PepsiCo, Inc. (b)
    
90,000
      
5,720,400
  
             
16,520,400
  
Diversified Financials - 9.14%
                
AmeriCredit Corp. (a) (b)
    
225,000
      
5,143,500
  
Federal Home Loan Mortgage Corp. (b)
    
37,000
      
2,201,130
  
             
7,344,630
  
Food Products - 10.80%
                
Kraft Foods, Inc.
    
70,000
      
2,216,200
  
Lancaster Colony Corp. (b)
    
100,000
      
4,419,000
  
Wm. Wrigley Jr. Co. (b)
    
40,000
      
2,037,200
  
             
8,672,400
  
Household Durables - 0.69%
                
Furniture Brands International, Inc. (b)
    
35,000
      
552,300
  
Household Products - 6.37%
                
Clorox Co. (b)
    
30,000
      
1,910,700
  
Colgate-Palmolive Co.
    
20,000
      
1,335,800
  
Henkel Ltd Partnership - ADR
    
14,000
      
1,872,929
  
             
5,119,429
  
Industrial Conglomerates - 2.75%
                
Tyco International Ltd.
    
70,000
      
2,208,500
  
Insurance - 2.10%
                
American International Group, Inc.
    
18,000
      
1,209,960
  
Quanta Capital Hldgs Ltd (a)
    
227,500
      
475,475
  
             
1,685,435
  
Internet Retail - 2.06%
                
eBay, Inc. (a) (b)
    
50,000
      
1,657,500
  
IT Services - 2.68%
                
First Data Corp.
    
80,000
      
2,152,000
  
Media - 4.64%
                
Liberty Media Holding Corp., Capital Series A (a)
    
10,000
      
1,105,900
  
Liberty Media Holding Corp., Interactive Series A (a) (b)
    
110,000
      
2,620,200
  
             
3,726,100
  
Pharmaceuticals - 4.71%
                
Johnson & Johnson (b)
    
25,000
      
1,506,500
  
Pfizer, Inc.
    
90,000
      
2,273,400
  
             
3,779,900
  
Software - 6.59%
                
Microsoft Corp.
    
190,000
      
5,295,300
  
Specialty Retail - 2.92%
                
Home Depot, Inc. (b)
    
19,000
      
698,060
  
Wal-Mart Stores, Inc.
    
35,000
      
1,643,250
  
             
2,341,310
  
TOTAL COMMON STOCKS (Cost $47,385,986)
            
61,055,204
  
   
Principal
          
   
Amount
    
Value
  
SHORT TERM INVESTMENTS - 50.48%
                
Commercial Paper - 22.78%
                
American Express
                
    5.120%, 04/04/2007
   $
3,672,000
      
3,670,434
  
General Electric
                
    5.120%, 04/04/2007
    
3,672,000
      
3,670,433
  
Intesa Funding LLC
                
    5.220%, 04/02/2007
    
3,642,000
      
3,641,477
  
Prudential
                
    5.140%, 04/04/2007
    
3,672,000
      
3,670,427
  
Rabobank USA
                
    5.220%, 04/02/2007
    
3,642,000
      
3,641,477
  
             
18,294,248
  
Demand Notes - 1.50%
                
US Bancorp
                
    5.070%
    
1,207,347
      
1,207,347
  
Other Short-Term Investments - 26.20%
                
Securities Lending Investment Account
            
21,041,753
  
TOTAL SHORT TERM INVESTMENTS (Cost $40,543,348)
            
40,543,348
  
Total Investments  (Cost $87,929,334) - 126.50%
            
101,598,552
  
Liabilities in Excess of Other Assets - (0.30)%
             (242,355 )
Less Liabilities for Collateral on Securities Loaned - (26.20)%
       (21,041,753 )
TOTAL NET ASSETS - 100.00%
           $
80,314,444
  
                 
                 
Percentages are stated as a percent of net assets.
      
             
ADR
American Depository Receipt
      
(a)
Non Income Producing
        
(b)
All or a portion of the security has been committed for securities lending.
             
             
 
The cost basis of investments for federal income tax purposes at March 31, 2007 was as follows*:
             
 
Cost of investments
$87,929,334
      
 
Gross unrealized appreciation
13,796,232
      
 
Gross unrealized depreciation
(127,014)
      
 
Net unrealized appreciation
13,669,218
      
             
*
Because tax adjustments are calculated annually, the above table does not reflect tax adjustments.  For the
 
previous fiscal year's federal income tax information, please refer to the Notes to Financial Statements section
 
in the Fund's most recent semi-annual or annual report.
  
             

               
The Yacktman Focused Fund
          
Schedule of Options Written
          
March 31, 2007
            
(Unaudited)
              
       
Contracts
  
Value
  
CALL OPTIONS
            
AmeriCredit Corp.
            
    Expiration: May, 2007, Exercise Price: $22.50
412
$
80,340
  
eBay, Inc.
              
    Expiration: April, 2007, Exercise Price: $32.50
300
  
48,000
  
Kraft Foods, Inc.
              
    Expiration: September, 2007, Exercise Price: $30.00
700
  
208,250
  
Liberty Media Holding Corp.
            
    Expiration: July, 2007, Exercise Price: $25.00
29
  
2,900
  
           
339,490
  
Total Options Written  (Premiums received $328,624)
  
$
339,490
  
 
Item 2. Controls and Procedures.
 
(a)      
The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b)      
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.


 
Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)).  Filed herewith.
 
 
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)  The Yacktman Funds, Inc.                                                     

By (Signature and Title)        /s/ Donald A. Yacktman                             
Donald A. Yacktman, President

Date                5/21/07                                                                                                                                                                                             



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 (Signature and Title)*        /s/ Donald A. Yacktman                                                  
Donald A. Yacktman, President

Date                     5/21/07                                                                                                        

By (Signature and Title)*         /s/ Donald A. Yacktman                                                
Donald A. Yacktman, Treasurer

Date              5/21/07                                                                                                               

* Print the name and title of each signing officer under his or her signature.