yacktman_nq.htm

0000894189-07-003311.txt : 20071123 0000894189-07-003311.hdr.sgml : 20071122 20071123112917 ACCESSION NUMBER: 0000894189-07-003311 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070930 FILED AS OF DATE: 20071123 DATE AS OF CHANGE: 20071123 EFFECTIVENESS DATE: 20071123 FILER: COMPANY DATA: COMPANY CONFORMED NAME: YACKTMAN FUND INC CENTRAL INDEX KEY: 0000885980 IRS NUMBER: 363831621 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-06628 FILM NUMBER: 071264671 BUSINESS ADDRESS: STREET 1: 6300 BRIDGEPOINT PARKWAY STREET 2: BUILDING ONE, SUITE 320 CITY: AUSTIN STATE: TX ZIP: 78730 BUSINESS PHONE: 512-767-6700 MAIL ADDRESS: STREET 1: 615 EAST MICHIGAN STREET 2: MK-WI-LC2 CITY: MILWAUKEE STATE: WI ZIP: 53202

0000885980 S000000869 YACKTMAN FUND

C000002485 YACKTMAN FUND

0000885980 S000000870 YACKTMAN FOCUSED FUND

C000002486 YACKTMAN FOCUSED FUND

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: September 30, 2007

Item 1. Schedule of Investments.

The Yacktman Fund
Schedule of Investments
September 30, 2007
(Unaudited)

		Shares		Value
COMMON STOCKS - 83.18%
Banks - 1.44%
U.S. Bancorp		150,000	$	4,879,500

Beverages - 22.51%
Anheuser-Busch Cos., Inc.		110,000		5,498,900
Coca-Cola Co.		720,000		41,378,400
PepsiCo, Inc.		400,000		29,304,000
				76,181,300
Commercial Services & Supplies - 1.13%
H&R Block, Inc.		180,000		3,812,400

Diversified Financials - 7.28%
AmeriCredit Corp. (a)		926,200		16,282,596
Federal Home Loan Mortgage Corp.		90,000		5,310,900
Federal National Mortgage Association		50,000		3,040,500
				24,633,996
Food Products - 8.88%
Kraft Foods, Inc.		100,000		3,451,000
Lancaster Colony Corp.		430,000		16,413,100
Wm. Wrigley Jr. Co.		159,000		10,212,570
				30,076,670
Health Care Equipment & Supplies - 2.14%
Covidien Ltd (a)		175,000		7,262,500

Household Durables - 1.92%
Furniture Brands International, Inc.		361,500		3,665,610
Pulte Homes, Inc.		208,000		2,830,880
				6,496,490
Household Products - 9.21%
Clorox Co.		172,000		10,490,280
Colgate-Palmolive Co.		75,000		5,349,000
Procter & Gamble Co.		218,000		15,334,120
				31,173,400
Industrial Conglomerates - 1.15%
Tyco International Ltd		87,500		3,879,750

Insurance - 2.80%
American International Group, Inc.		90,000		6,088,500
MGIC Investment Corp.		30,000		969,300
Quanta Capital Holdings Ltd. (a)		895,000		2,416,500
				9,474,300
Internet Retail - 3.22%
eBay, Inc. (a)		279,000		10,886,580

Media - 5.50%
Interpublic Group of Cos., Inc. (a)		481,155		4,994,389
Liberty Media Holding Corp., Interactive Series A (a)		385,000		7,395,850
Viacom, Inc., Class B (a)		160,000		6,235,200
				18,625,439
Oil & Gas - 0.56%
Resource America, Inc.		120,000		1,894,800

Pharmaceuticals - 5.91%
Johnson & Johnson		130,000		8,541,000
Pfizer, Inc.		470,000		11,482,100
				20,023,100
Software - 7.12%
Microsoft Corp.		818,000		24,098,280

Specialty Retail - 2.41%
Home Depot, Inc.		50,000		1,622,000
Wal-Mart Stores, Inc.		150,000		6,547,500
				8,169,500

TOTAL COMMON STOCKS (Cost $218,181,714)				281,568,005
		Principal
		Amount
CONVERTIBLE BONDS - 1.23%
Converible Bond - 1.23%
Rait Financial Trust
6.880%, 04/15/2027 (Acquired 04/12/2007, Cost $1,500,000) (b)	$	6,000,000		4,140,000
TOTAL CONVERTIBLE BONDS (Cost $3,654,794)				4,140,000
SHORT TERM INVESTMENTS - 21.53%
Commercial Paper - 15.88%
Deutsche Bank
4.970%, 10/01/2007		13,297,000		13,297,000
General Electric Capital Corp.
4.650%, 10/03/2007		13,586,000		13,582,543
Toyota Motor Credit Corp.
4.650%, 10/03/2007		13,586,000		13,582,543
UBS Finance
4.720%, 10/01/2007		13,297,000		13,297,000
				53,759,086
Demand Note - 0.28%
U.S. Bancorp
5.550% (c)		947,365		947,365
Other Short-Term Investment - 5.37%
Securities Lending Investment Account				18,183,030
TOTAL SHORT TERM INVESTMENTS (Cost $72,889,481)				72,889,481
Total Investments (Cost $294,725,989) - 105.94%				358,597,486
Liabilities in Excess of Other Assets - (0.57)%				(1,914,309)
Liabilitiesfor Collateral on Securities Lending - (5.37)%				(18,183,030)
TOTAL NET ASSETS - 100.00%			$	338,500,147

Percentages are stated as a percent of net assets.

(a)	Non Income Producing
(b)	Restricted
(c)	Variable Rate


	*The cost basis of investments for federal income tax purposes at September 30, 2007 was as follows:**

	Cost of investments	$294,725,989
	Gross unrealized appreciation	66,489,397
	Gross unrealized depreciation	(2,617,900)
	Net unrealized appreciation	$63,871,496

	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.

Schedule of Investments
September 30, 2007
The Yacktman Focused Fund
(Unaudited)
			Shares		Value
COMMON STOCKS - 83.02%
Beverages - 24.43%
Coca-Cola Co.			190,000	$	10,919,300
PepsiCo, Inc.			95,000		6,959,700
					17,879,000
Diversified Financials - 7.84%
AmeriCredit Corp. (a)			202,300		3,556,434
Federal Home Loan Mortgage Corp.			37,000		2,183,370
					5,739,804
Food Products - 8.73%
Lancaster Colony Corp.			100,000		3,817,000
Wm. Wrigley Jr. Co.			40,000		2,569,200
					6,386,200
Health Care Equipment & Supplies - 1.98%
Covidien Ltd (a)			35,000		1,452,500

Household Durables - 3.04%
Furniture Brands International, Inc.			74,500		755,430
Pulte Homes, Inc.			108,000		1,469,880
					2,225,310
Household Products - 8.96%
Clorox Co.			38,000		2,317,620
Colgate-Palmolive Co.			20,000		1,426,400
Procter & Gamble Co.			40,000		2,813,600
					6,557,620
Industrial Conglomerates - 1.06%
Tyco International Ltd			17,500		775,950

Insurance - 2.50%
American International Group, Inc.			18,000		1,217,700
Quanta Capital Holdings Ltd. (a)			227,500		614,250
					1,831,950
Internet Retail - 5.33%
eBay, Inc. (a)			100,000		3,902,000

Media - 2.89%
Liberty Media Holding Corp., Interactive Series A (a)			110,000		2,113,100

Oil & Gas - 0.43%
Resource America, Inc.			20,000		315,800

Pharmaceuticals - 5.25%
Johnson & Johnson			25,000		1,642,500
Pfizer, Inc.			90,000		2,198,700
					3,841,200
Software - 7.65%
Microsoft Corp.			190,000		5,597,400

Specialty Retail - 2.93%
Home Depot, Inc.			19,000		616,360
Wal-Mart Stores, Inc.			35,000		1,527,750
					2,144,110

TOTAL COMMON STOCKS (Cost $48,863,435)					60,761,944

			Principal
			Amount
CONVERTIBLE BONDS - 1.13%
Converible Bond - 1.13%
Rait Financial Trust
6.880%, 04/15/2027 (Acquired 04/12/2007, Cost $1,500,000) (b)		$	1,200,000		828,000
TOTAL CONVERTIBLE BONDS (Cost $715,988)					828,000
SHORT TERM INVESTMENTS - 18.49%
Commercial Paper - 15.63%
Deutsche Bank
4.970%, 10/01/2007			2,946,000		2,946,000
General Electric Capital Corp.
4.650%, 10/03/2007			2,774,000		2,773,294
Toyota Motor Credit Corp.
4.650%, 10/03/2007			2,774,000		2,773,294
UBS Finance
4.720%, 10/01/2007			2,946,000		2,946,000
					11,438,588
Demand Note - 1.06%
US Bancorp
5.550% (c)			772,450		772,450
Other Short-Term Investment - 1.80%
Securities Lending Investment Account					1,322,367
TOTAL SHORT TERM INVESTMENTS (Cost $13,533,405)					13,533,405
Total Investments (Cost $63,112,828) - 102.64%					75,123,349
Liabilities in Excess of Other Assets - (0.84)%					(611,220)
Liabilitiesfor Collateral on Securities Lending - (1.80)%					(1,322,367)
TOTAL NET ASSETS - 100.00%				$	73,189,762


Percentages are stated as a percent of net assets.

(a)	Non Income Producing
(b)	Restricted
(c)	Variable Rate


	*The cost basis of investments for federal income tax purposes at September 30, 2007 was as follows:**

	Cost of investments	$63,112,828
	Gross unrealized appreciation	12,770,591
	Gross unrealized depreciation	(760,070)
	Net unrealized appreciation	12,010,521

*	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.


Schedule of Options Written
September 30, 2007
The Yacktman Focused Fund
(Unaudited)
			Contracts		Value
PUT OPTIONS

AmeriCredit Corp.
Expiration: January, 2008, Exercise Price: $20.00			185	$	19,887
eBay, Inc.
Expiration: October, 2007, Exercise Price: $37.50			300		69,000
Expiration: January, 2008, Exercise Price: $37.50			500		197,500
Pulte Homes, Inc.
Expiration: January, 2008, Exercise Price: $17.50			100		7,500
Expiration: January, 2008, Exercise Price: $20.00			250		10,000
Expiration: January, 2008, Exercise Price: $22.50			375		7,500
Expiration: January, 2010, Exercise Price: $20.00			150		41,250
					352,637
Total Options Written (Premiums received $406,277)				$	352,637

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 have materially affected, or are 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 1940 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 11/20/2007

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 11/20/2007

By (Signature and Title)* Donald A. Yacktman

Donald A. Yacktman, Treasurer

Date 11/20/2007

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

EX-99.CERT 2 certs.htm OFFICER CERTIFICATIONS certs.htm

CERTIFICATION

I, Donald A. Yacktman, certify that:

1.	I have reviewed this report on Form N-Q of The Yacktman Funds, Inc.;

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 schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

The registrant's other certifying officer(s) 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 registrant's 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;

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.	The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's 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 registrant's 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 registrant's internal control over financial reporting.

Date: 11/20/2007	/s/ Donald A. Yacktman
	Donald A. Yacktman President

CERTIFICATION

I, Donald A. Yacktman, certify that:

1.	I have reviewed this report on Form N-Q of The Yacktman Funds, Inc.;

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 schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

(a)

(b)

(c)	Evaluated the effectiveness of the registrant's 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;

(d)

5.	The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's 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 registrant's 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 registrant's internal control over financial reporting.

Date: 11/20/2007	/s/ Donald A. Yacktman
	Donald A. Yacktman Treasurer