0000894189-12-002883.txt : 20120523 0000894189-12-002883.hdr.sgml : 20120523 20120523113945 ACCESSION NUMBER: 0000894189-12-002883 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20120331 FILED AS OF DATE: 20120523 DATE AS OF CHANGE: 20120523 EFFECTIVENESS DATE: 20120523 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: 12863488 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 YACKX 0000885980 S000000870 YACKTMAN FOCUSED FUND C000002486 YACKTMAN FOCUSED FUND YAFFX N-Q 1 yacktman_nq.htm QUARTERLY NOTICE OF PORTFOLIO HOLDINGS yacktman_nq.htm
As filed with the Securities and Exchange Commission on May 23, 2012
 



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, 2012

 
 
 
 
 
Item 1. Schedule of Investments.
 
 
Schedule of Investments
            
March 31, 2012 (Unaudited)
            
The Yacktman Fund
            
             
   
Number of
Shares
    
Value
  
COMMON STOCKS - 86.70%
            
Beverages - 12.59%
            
Coca-Cola Co.
     3,250,000       240,532,500  
PepsiCo, Inc.
     10,700,000       709,945,000  
              950,477,500  
Capital Markets - 3.06%
                
Bank of New York Mellon Corp.
     4,200,000       101,346,000  
Goldman Sachs Group, Inc.
     350,000       43,529,500  
Janus Capital Group, Inc.
     4,560,000       40,629,600  
State Street Corp.
     1,000,000       45,500,000  
              231,005,100  
Commercial Banks - 2.83%
                
The Bancorp, Inc. (a)
     760,000       7,630,400  
U.S. Bancorp
     6,500,000       205,920,000  
              213,550,400  
Communications Equipment - 5.30%
                
Cisco Systems, Inc.
     15,800,000       334,170,000  
Research In Motion Ltd. (a)
     4,500,000       66,195,000  
              400,365,000  
Computers & Peripherals - 1.63%
                
Hewlett-Packard Co.
     5,150,000       122,724,500  
Consumer Finance - 0.18%
                
American Express Co.
     235,000       13,597,100  
Diversified Consumer Services - 2.72%
                
Apollo Group, Inc., Class A (a)
     2,550,000       98,532,000  
H&R Block, Inc.
     6,500,000       107,055,000  
              205,587,000  
Diversified Financial Services - 0.69%
                
Bank of America Corp.
     5,000,000       47,850,000  
Resource America, Inc., Class A
     659,226       4,159,716  
              52,009,716  
Electronic Equipment, Instruments & Components - 1.14%
                
Corning, Inc.
     6,100,000       85,888,000  
Food & Staples Retailing - 4.35%
                
Sysco Corp.
     11,000,000       328,460,000  
Food Products - 0.41%
                
Lancaster Colony Corp.
     460,000       30,571,600  
Health Care Equipment & Supplies - 7.08%
                
Becton, Dickinson & Co.
     800,000       62,120,000  
C.R. Bard, Inc.
     2,752,000       271,677,440  
Covidien Plc
     850,000       46,478,000  
Medtronic, Inc.
     400,000       15,676,000  
Stryker Corp.
     2,498,617       138,623,271  
              534,574,711  
Health Care Providers & Services - 1.85%
                
Patterson Companies, Inc.
     2,050,000       68,470,000  
UnitedHealth Group, Inc.
     1,200,000       70,728,000  
              139,198,000  
 
 
 
 
 
Household Products - 9.58%
                
Clorox Co.
     1,740,000       119,625,000  
Colgate-Palmolive Co.
     670,000       65,512,600  
Procter & Gamble Co.
     8,000,000       537,680,000  
              722,817,600  
Internet Software & Services - 0.61%
                
eBay, Inc. (a)
     1,250,000       46,112,500  
Media - 14.37%
                
Comcast Corp., Class A
     4,700,000       138,697,000  
Liberty Interactive Corp., Series A (a)
     2,900,000       55,361,000  
News Corp., Class A
     31,000,000       610,390,000  
Viacom, Inc., Class B
     5,900,000       280,014,000  
              1,084,462,000  
Oil, Gas & Consumable Fuels - 3.49%
                
ConocoPhillips
     2,150,000       163,421,500  
Exxon Mobil Corp.
     1,150,000       99,739,500  
              263,161,000  
Personal Products - 1.90%
                
Avon Products, Inc.
     7,400,000       143,264,000  
Pharmaceuticals - 5.40%
                
Johnson & Johnson
     3,500,000       230,860,000  
Pfizer, Inc.
     7,800,000       176,748,000  
              407,608,000  
Semiconductor & Semiconductor Equipment - 0.86%
                
Intel Corp.
     2,300,000       64,653,000  
Software - 4.85%
                
Microsoft Corp.
     11,350,000       366,037,500  
Specialty Retail - 1.81%
                
Staples, Inc.
     2,000,000       32,360,000  
Wal-Mart Stores, Inc.
     1,700,000       104,040,000  
              136,400,000  
TOTAL COMMON STOCKS (Cost $5,469,245,082)
             6,542,524,227  
SHORT TERM INVESTMENTS - 13.03%
  
Principal
Amount
          
Commercial Paper - 0.90%
                
American Express Co.
                
0.003%, 04/02/2012
   $ 67,680,000       67,679,990  
Demand Note - 0.00%
                
U.S. Bancorp
                
0.00%
     379,388       379,388  
U.S. Treasury Bills - 12.13%
                
U.S. Treasury Bill
                
0.040%, 04/19/2012
     437,680,000       437,670,663  
0.010%, 04/26/2012
     45,912,000       45,911,681  
0.001%, 05/03/2012
     83,972,000       83,971,925  
0.003%, 05/17/2012
     102,861,000       102,860,612  
0.051%, 05/31/2012
     41,965,000       41,961,392  
0.058%, 06/21/2012
     203,185,000       203,158,180  
              915,534,453  
TOTAL SHORT TERM INVESTMENTS (Cost $983,614,077)
             983,593,831  
Total Investments (Cost $6,452,859,159) - 99.73%
             7,526,118,058  
Other Assets in Excess of Liabilities - 0.27%
             20,387,799  
TOTAL NET ASSETS - 100.00%
           $ 7,546,505,857  
                 
 
 
 
 
 
Percentages are stated as a percent of net assets.
          
       
Plc
Public Limited Company
          
(a)
Non-Income Producing
          
               
 
The cost basis of investments for federal income tax purposes at March 31, 2012 was as follows*:
               
 
Cost of investments
  
$6,452,859,159
      
 
Gross unrealized appreciation
1,169,267,739
      
 
Gross unrealized depreciation
(96,008,840)
      
 
Net unrealized appreciation
  
$1,073,258,899
      
               
 
*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.
 
Valuation Measurements
            
The Trust has adopted authoritative fair valuation accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value.  These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs, if any, during the period.  In addition, these standards require expanded disclosure for each major category of assets.  These inputs are summarized in the three broad levels listed below:
               
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
               
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.  The following is a summary of the inputs used to value the Fund's net assets as of March 31, 2012 :
               
THE YACKTMAN FUND
            
   
Level 1
    
Level 2
    
Level 3
    
Total
  
                         
Common Stock*
   $ 6,542,524,227     $ -     $ -     $ 6,542,524,227  
                                 
Short Term Investments*
     -       983,593,831       -       983,593,831  
                                 
Total Investments in Securities
   $ 6,542,524,227     $ 983,593,831     $ -     $ 7,526,118,058  
                                 
*Please refer to the portfolio of investments to view securities by industry type.
      
               
The Funds did not invest in any Level 3 investments during the year.  There were no transfers into or out of Level 1 or Level 2 during the year.
It is the Funds' policy to consider transfers into or out of Level 1 or Level 2 as of the end of the reporting period.
  
 
 
 
 
 
 
Schedule of Investments
            
March 31, 2012 (Unaudited)
            
The Yacktman Focused Fund
            
             
   
Number of
Shares
    
Value
  
COMMON STOCKS - 84.50%
            
Auto Manufacturers - 0.41%
            
Toyota Industries Corporation - ADR (a)
     800,000       24,263,920  
Beverages - 11.94%
                
Coca-Cola Co.
     1,960,000       145,059,600  
PepsiCo, Inc.
     8,500,000       563,975,000  
              709,034,600  
Capital Markets - 2.45%
                
Bank of New York Mellon Corp.
     2,250,000       54,292,500  
Goldman Sachs Group, Inc.
     250,000       31,092,500  
Northern Trust Corp.
     550,000       26,097,500  
State Street Corp.
     750,000       34,125,000  
              145,607,500  
Commercial Banks - 2.19%
                
The Bancorp, Inc. (a)
     336,000       3,373,440  
U.S. Bancorp
     4,000,000       126,720,000  
              130,093,440  
Communications Equipment - 4.38%
                
Cisco Systems, Inc.
     10,100,000       213,615,000  
Research In Motion Ltd. (a)
     3,150,000       46,336,500  
              259,951,500  
Computers & Peripherals - 1.29%
                
Hewlett-Packard Co.
     3,200,000       76,256,000  
Diversified Consumer Services - 2.36%
                
Apollo Group, Inc., Class A (a)
     2,000,000       77,280,000  
H&R Block, Inc.
     3,800,000       62,586,000  
              139,866,000  
Diversified Financial Services - 0.02%
                
Resource America, Inc., Class A
     215,000       1,356,650  
Electronic Equipment, Instruments & Components - 1.04%
                
Corning, Inc.
     4,400,000       61,952,000  
Food & Staples Retailing - 4.93%
                
Sysco Corp.
     9,800,000       292,628,000  
Health Care Equipment & Supplies - 8.21%
                
Becton, Dickinson & Co.
     770,000       59,790,500  
C.R. Bard, Inc.
     2,850,000       281,352,000  
Covidien Plc
     800,000       43,744,000  
Stryker Corp.
     1,850,000       102,638,000  
              487,524,500  
Health Care Providers & Services - 0.89%
                
Patterson Companies, Inc.
     650,000       21,710,000  
UnitedHealth Group, Inc.
     530,000       31,238,200  
              52,948,200  
Household Products - 14.44%
                
Clorox Co.
     2,900,000       199,375,000  
Colgate-Palmolive Co.
     200,000       19,556,000  
Procter & Gamble Co.
     9,500,000       638,495,000  
              857,426,000  
Media - 13.43%
                
Comcast Corp., Class A
     2,300,000       67,873,000  
Liberty Interactive Corp., Series A (a)
     840,000       16,035,600  
News Corp., Class A
     29,000,000       571,010,000  
News Corp., Class B
     19,600       391,608  
Viacom, Inc., Class B
     3,000,000       142,380,000  
              797,690,208  
Oil, Gas & Consumable Fuels - 2.72%
                
ConocoPhillips
     1,500,000       114,015,000  
Exxon Mobil Corp.
     550,000       47,701,500  
              161,716,500  
Personal Products - 1.94%
                
Avon Products, Inc.
     5,970,000       115,579,200  
Pharmaceuticals - 4.64%
                
Johnson & Johnson
     2,250,000       148,410,000  
Pfizer, Inc.
     5,600,000       126,896,000  
              275,306,000  
Software - 6.19%
                
Microsoft Corp.
     11,400,000       367,650,000  
Specialty Retail - 1.03%
                
Wal-Mart Stores, Inc.
     1,000,000       61,200,000  
TOTAL COMMON STOCKS (Cost $4,339,955,193)
             5,018,050,218  
                 
   
Principal
Amount
          
CORPORATE BONDS - 0.14%
                
Media - 0.14%
                
Liberty Interactive LLC
                
8.250%, 02/01/2030
   $ 8,000,000       8,120,000  
TOTAL  CORPORATE BONDS (Cost $7,381,093)
             8,120,000  
SHORT TERM INVESTMENTS - 16.19%
                
Commercial Paper - 0.55%
                
American Express Co.
                
0.003%, 04/02/2012
     32,519,000       32,518,995  
Demand Note - 0.01%
                
U.S. Bancorp
                
0.00%
     448,266       448,266  
U.S. Treasury Bills - 15.63%
                
U.S. Treasury Bill
                
0.046%, 04/12/2012
     177,837,000       177,834,283  
0.042%, 04/19/2012
     445,112,000       445,102,146  
0.005%, 04/26/2012
     24,366,000       24,365,915  
0.010%, 05/03/2012
     60,760,000       60,759,459  
0.005%, 05/17/2012
     33,877,000       33,876,784  
0.051%, 05/31/2012
     25,917,000       25,914,771  
0.056%, 06/14/2012
     58,000,000       57,993,214  
0.058%, 06/21/2012
     38,069,000       38,063,975  
0.131%, 09/20/2012
     64,801,000       64,760,240  
              928,670,787  
TOTAL SHORT TERM INVESTMENTS (Cost $961,651,292)
             961,638,048  
Total Investments (Cost $5,308,987,578) - 100.83%
             5,987,808,266  
Liabilities in Excess of Other Assets - (0.83)%
             -49,423,196  
TOTAL NET ASSETS - 100.00%
           $ 5,938,385,070  
                 
 
 
 
 
 
Percentages are stated as a percent of net assets.
            
         
ADR
American Depository Receipt
            
Plc
Public Limited Company
            
(a)
Non-Income Producing
            
                 
 
The cost basis of investments for federal income tax purposes at March 31, 2012 was as follows*:
  
                 
 
Cost of investments
  
$5,308,987,578
        
 
Gross unrealized appreciation
736,413,121
        
 
Gross unrealized depreciation
(57,592,433)
        
 
Net unrealized appreciation
  
$678,820,688
        
                 
 
*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.
 
Valuation Measurements
              
The Trust has adopted authoritative fair valuation accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value.  These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs, if any, during the period.  In addition, these standards require expanded disclosure for each major category of assets.  These inputs are summarized in the three broad levels listed below:
                 
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
                 
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.  The following is a summary of the inputs used to value the Fund's net assets as of March 31, 2012 :
                 
THE YACKTMAN FOCUSED FUND
            
   
Level 1
    
Level 2
    
Level 3
    
Total
  
                         
Common Stock*
   $ 4,993,786,298     $ 24,263,920 ** $ -     $ 5,018,050,218  
                                 
Corporate Bonds*
     -       8,120,000       -       8,120,000  
                                 
Short Term Investments*
     -       961,638,048       -       961,638,048  
                                 
Total Investments in Securities
   $ 4,993,786,298     $ 994,021,968     $ -     $ 5,987,808,266  
                                 
*Please refer to the portfolio of investments to view securities by industry type.
**Amount represents a security in the Auto Manufacturers industry.
 
The Funds did not invest in any Level 3 investments during the year.  There were no transfers into or out of Level 1 or Level 2 during the year.
It is the Funds' policy to consider transfers into or out of Level 1 or Level 2 as of the end of the reporting period.
 
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC ("S&P").  GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
 
 
 
 
 
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”)) (17 CFR 270.30a-3(c)) 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 (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)).

(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) (17 CFR 270.30a-3(d)) 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     5/1/12                                                                                                                 



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 & Treasurer

Date     5/1/12                                                                                                                 


* Print the name and title of each signing officer under his or her signature.
 
 
 
EX-99.CERT 2 certs.htm OFFICER CERTIFICATION Unassociated Document
 
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;

4.  
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:        5/1/12                    
/s/ Donald A. Yacktman               
 
Donald A. Yacktman
President & Treasurer