-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BKzaaed4tIN6kQ65Ha/VI38B9O/yFoHGTDQXM/g4tzICTxEC5lTgDqfGHPNHZv/a agYWJha24U1zHO3LsnPRzA== 0000948221-05-000087.txt : 20050524 0000948221-05-000087.hdr.sgml : 20050524 20050524154506 ACCESSION NUMBER: 0000948221-05-000087 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050331 FILED AS OF DATE: 20050524 DATE AS OF CHANGE: 20050524 EFFECTIVENESS DATE: 20050524 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: 05854378 BUSINESS ADDRESS: STREET 1: 303 W MADISON ST CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3126412400 MAIL ADDRESS: STREET 1: 803 WEST MICHIGAN STREET STREET 2: SUITE A CITY: MILWAUKEE STATE: WI ZIP: 53233 N-Q 1 ya19920.txt 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 811-6628 The Yacktman Funds, Inc. ------------------------ (Exact name of registrant as specified in charter) 1110 Lake Cook Road, Suite 385 Buffalo Grove, Illinois 60089 (Address of principal executive offices) (Zip code) Donald A. Yacktman Yacktman Asset Management Co. 1110 Lake Cook Road, Suite 385 Buffalo Grove, Illinois 60089 (Name and address of agent for service) Registrant's telephone number, including area code: (847) 325-0707 -------------- Date of fiscal year end: December 31 ----------- Date of reporting period: March 31, 2005 -------------- FORM N-Q ITEM 1. SCHEDULE OF INVESTMENTS. The Yacktman Funds, Inc. Schedules of Investments March 31, 2005 (Unaudited) THE YACKTMAN FUND - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS MARCH 31, 2005 - -------------------------------------------------------------------------------- NUMBER OF SHARES VALUE - -------------------------------------------------------------------------------- COMMON STOCKS 64.4% BANKS 1.4% U.S. Bancorp 150,000 $4,323,000 Washington Mutual, Inc. 40,000 1,580,000 ---------------- 5,903,000 ---------------- BEVERAGES 8.3% Coca-Cola Co. 710,000 29,585,700 PepsiCo, Inc. 90,000 4,772,700 ---------------- 34,358,400 ---------------- COMMERCIAL SERVICES & SUPPLIES 1.1% Block H&R, Inc. 90,000 4,552,200 ---------------- DIVERSIFIED FINANCIALS 6.8% AmeriCredit Corp.* 730,000 17,111,200 Federal Home Loan Mortgage Corp. 100,000 6,320,000 Federal National Mortgage 90,000 4,900,500 Association ---------------- 28,331,700 ---------------- FOOD PRODUCTS 10.3% Cadbury Schweppes plc 180,000 7,326,000 Interstate Bakeries Corp.* 80,000 472,000 Kraft Foods, Inc. 560,000 18,508,000 Lancaster Colony Corp. 390,000 16,594,500 ---------------- 42,900,500 ---------------- HEALTH CARE PROVIDERS & SERVICES 1.4% Cardinal Health, Inc. 100,000 5,580,000 ---------------- HOUSEHOLD PRODUCTS 10.3% Clorox Co. 110,000 6,928,900 Colgate-Palmolive Co. 75,000 3,912,750 Henkel KGaA 265,000 22,524,179 Unilever NV 140,000 9,578,800 ---------------- 42,944,629 ---------------- - -------------------------------------------------------------------------------- NUMBER OF SHARES VALUE - -------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES 2.8% Tyco International Ltd. 350,000 $11,830,000 ---------------- INSURANCE 1.7% Marsh & McLennan Cos., Inc. 103,500 3,148,470 MBIA, Inc. 40,000 2,091,200 MGIC Investment Corp. 30,000 1,850,100 ---------------- 7,089,770 ---------------- IT CONSULTING & SERVICES 2.7% Electronic Data Systems Corp. 300,000 6,201,000 First Data Corp. 130,000 5,110,300 ---------------- 11,311,300 ---------------- MEDIA 7.9% Interpublic Group of Cos., Inc.* 480,000 5,894,400 Liberty Media Corp.* 2,600,000 26,962,000 ---------------- 32,856,400 ---------------- PHARMACEUTICALS 6.1% Bristol-Myers Squibb Co. 380,000 9,674,800 Johnson & Johnson 70,000 4,701,200 Pfizer, Inc. 420,000 11,033,400 ---------------- 25,409,400 ---------------- REAL ESTATE 1.4% Trizec Properties, Inc. 310,000 5,890,000 ---------------- SOFTWARE 0.6% Microsoft Corp. 100,000 2,417,000 ---------------- SPECIALTY RETAIL 0.2% Friedman's, Inc., Class A* 465,000 609,150 ---------------- TOBACCO 1.4% Altria Group, Inc. 90,000 5,885,100 ---------------- Total Common Stocks (cost $190,798,658) 267,868,549 ---------------- THE YACKTMAN FUND - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS (CONT'D.) MARCH 31, 2005 - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------- CORPORATE BONDS 1.0% Athena Nuero Financial, LLC. 7.25%, 02/21/08 5,000,000 $4,252,500 Total Corporate Bonds (cost $4,250,000) 4,252,500 ---------------- SHORT-TERM INVESTMENTS 50.5% COMMERCIAL PAPER 34.7% Abbey National 2.68%, 04/06/05 18,200,000 18,193,226 Chesham Financial 2.75%, 04/01/05 18,100,000 18,100,000 CitiGroup Global 2.65%, 04/06/05 18,000,000 17,993,375 GE Capital Corp., 2.62%, 04/06/05 18,000,000 17,993,450 Greenwich Funding 2.72%, 04/01/05 18,100,000 18,100,000 Prudential Funding 2.61%, 04/06/05 18,000,000 17,993,475 Toyota Motor Corp., 2.60%, 04/06/05 18,000,000 17,993,500 UBS Financial 2.73%, 04/01/05 18,100,000 18,100,000 ---------------- Total Commercial Paper (cost $144,467,026) 144,467,026 ---------------- DEMAND NOTE (VARIABLE RATE) 0.1% U.S. Bancorp, 2.17% 554,040 554,040 ---------------- Total Demand Note (cost $554,040) 554,040 ---------------- VALUE - -------------------------------------------------------------------------------- OTHER SHORT-TERM INVESTMENT 15.7% Securities Lending Investment Account (cost $65,206,716) $65,206,716 ---------------- Total Short-Term Investments (cost $210,227,782) 210,227,782 ---------------- Total Investments (cost $405,276,440) 115.9% 482,348,831 ---------------- Liabilities less Other Assets -0.2% (803,247) Less Liability for (15.7)% Collateral on Securities Loaned (65,206,716) ---------------- Net Assets - 100% (equivalent to $15.07 per share based on 27,624,850 shares outstanding) $416,338,868 ================ * Non-income producing THE YACKTMAN FOCUSED FUND - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS MARCH 31, 2005 - -------------------------------------------------------------------------------- NUMBER OF SHARES VALUE - -------------------------------------------------------------------------------- COMMON STOCKS 73.8% BEVERAGES 8.3% Coca-Cola Co. 185,000 $7,708,950 ---------------- COMMERCIAL SERVICES & SUPPLIES 1.9% Block H&R, Inc. 35,000 1,770,300 ---------------- DIVERSIFIED FINANCIALS 11.2% AmeriCredit Corp.* 280,000 6,563,200 Federal Home Loan Mortgage Corp. 60,000 3,792,000 ---------------- 10,355,200 ---------------- FOOD PRODUCTS 10.3% Interstate Bakeries Corp.* 50,000 295,000 Kraft Foods, Inc. 150,000 4,957,500 Lancaster Colony Corp. 100,000 4,255,000 ---------------- 9,507,500 ---------------- HEALTH CARE PROVIDERS & 1.5% SERVICES Cardinal Health, Inc. 25,000 1,395,000 ---------------- HOUSEHOLD PRODUCTS 13.9% Clorox Co. 30,000 1,889,700 Colgate-Palmolive Co. 20,000 1,043,400 Henkel KGaA 85,000 7,224,737 Unilever NV 40,000 2,736,800 ---------------- 12,894,637 ---------------- INDUSTRIAL CONGLOMERATES 3.3% Tyco International Ltd. 90,000 3,042,000 ---------------- INSURANCE 0.8% Marsh & McLennan Cos., Inc. 26,200 797,004 ---------------- IT CONSULTING & SERVICES 1.8% Electronic Data Systems Corp. 80,000 1,653,600 ---------------- MEDIA 10.1% Interpublic Group of Cos., Inc.* 193,100 2,371,268 Liberty Media Corp.* 670,000 6,947,900 ---------------- 9,319,168 ---------------- PHARMACEUTICALS 6.7% Bristol-Myers Squibb Co. 130,000 3,309,800 Pfizer, Inc. 110,000 2,889,700 ---------------- 6,199,500 ---------------- REAL ESTATE 1.8% Trizec Properties, Inc. 90,000 1,710,000 ---------------- - -------------------------------------------------------------------------------- NUMBER OF SHARES VALUE - -------------------------------------------------------------------------------- SPECIALTY RETAIL 0.4% Friedman's, Inc., Class A* 260,000 $340,600 ---------------- TOBACCO 1.8% Altria Group., Inc. 25,000 1,634,750 ---------------- Total Common Stocks (cost $51,603,174) 68,328,209 ---------------- PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS 46.3% COMMERCIAL PAPER 25.7% Abbey National 2.68%, 04/06/05 4,000,000 3,998,511 Chesham Financial 2.75%, 04/01/05 3,900,000 3,900,000 CitiGroup Global 2.65%, 04/06/05 4,000,000 3,998,528 GE Capital Corp. 2.62%, 04/06/05 4,000,000 3,998,544 Prudential Funding 2.61%, 04/06/05 4,000,000 3,998,550 UBS Financial 2.73%, 04/01/05 3,900,000 3,900,000 ---------------- Total Commercial Paper (cost $23,794,133) 23,794,133 ---------------- THE YACKTMAN FOCUSED FUND - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS (CONT'D.) MARCH 31, 2005 - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------- DEMAND NOTE (VARIABLE RATE) 0.2% U.S. Bancorp, 2.17% $216,621 $216,621 ---------------- Total Demand Note (cost $216,621) 216,621 ---------------- OTHER SHORT-TERM INVESTMENT 20.4% Securities Lending Investment Account (cost $18,895,384) 18,895,384 ---------------- Total Short-Term Investments (cost $42,906,138) 42,906,138 ---------------- Total Investments (cost $94,509,312) 120.1% 111,234,347 ---------------- Other Assets less Liabilities 0.3% 232,727 Less Liability for Collateral (20.4)% on Securities Loaned (18,895,384) ---------------- Net Assets - 100% (equivalent to $15.54 per share based on 5,957,606 shares outstanding) $92,571,690 ================ * Non-income producing THE YACKTMAN FUNDS, INC. NOTES TO THE SCHEDULES OF INVESTMENTS March 31, 2005 - -------------------------------------------------------------------------------- ORGANIZATION The Yacktman Funds, Inc. (comprised of The Yacktman Fund and The Yacktman Focused Fund, hereafter referred to as the "Funds") is registered as an open-end management investment company under the Investment Company Act of 1940 (the "1940 Act"). The Funds consist of two investment portfolios: The Yacktman Fund is a diversified fund that commenced operations July 6, 1992 and The Yacktman Focused Fund is a non-diversified fund that commenced operations May 1, 1997. The objective of each of the Funds is to produce long-term capital appreciation with current income as a secondary objective. Yacktman Asset Management Co. is the Funds' investment adviser (the "Adviser"). INVESTMENT VALUATION - Securities which are traded on a national stock exchange are valued at the last sale price on the securities exchange on which such securities are primarily traded. Securities that are traded on the Nasdaq National Market or the Nasdaq Smallcap Market are valued at the Nasdaq Official Closing Price. Exchange-traded securities for which there were no transactions are valued at the current bid prices. Securities traded on only over-the-counter markets are valued on the basis of closing over-the-counter bid prices. Short-term debt instruments maturing within 60 days are valued by the amortized cost method, which approximates fair value. Options written or purchased by the Yacktman Focused Fund are valued at the last sales price if such last sales price is between the current bid and asked prices. Otherwise, options are valued at the mean between the current bid and asked prices. Any securities for which there are no readily available market quotations and other assets will be valued at their fair value as determined in good faith by the Adviser pursuant to procedures established by and under the supervision of the Board of Directors. The fair value of a security is the amount which a Fund might reasonably expect to receive upon a current sale. Valuing securities at fair value involves greater reliance on judgment than valuing securities that have readily available market quotations. There can be no assurance that the Funds could obtain the fair value assigned to a security if they were to sell the security at approximately the time at which the funds determine their net asset value per share. OPTIONS- Premiums received by the Yacktman Focused Fund upon writing options are recorded as an asset with a corresponding liability which is subsequently adjusted to the current market value of the option. Changes between the initial premiums received and the current value of the options are recorded in unrealized gains and losses. When an option expires, is exercised, or is closed, the Fund realizes a gain or loss, and the liability is eliminated. The fund continues to bear the risk of adverse movements in the price of the underlying security during the period of the option, although any potential loss would be reduced by the amount of option premium received. The Yacktman Focused Fund had no activity in written options for the year ended December 31, 2004. OTHER - Investment transactions are accounted for on the trade date. The Funds determine the gain or loss realized from investment transactions by comparing the original cost of the security lot sold with the net sale proceeds. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. SECURITIES LENDING The Funds have entered into a securities lending arrangement with the custodian. Under the terms of the agreement, the custodian is authorized to loan securities on behalf of the Funds to approved brokers against the receipt of cash collateral at least equal to the value of the securities loaned. The cash collateral is invested by the custodian in a money market pooled account approved by the Adviser. Each Fund has an individual interest of cash collateral contributed, although risk is mitigated by the collateral, the Funds could experience a delay in recovering their securities and possible loss of income generated from lending transactions is allocated 60% to the Funds and 40% to the custodian. As of March 31, 2005, The Yacktman Fund had on loan securities valued at $62,525,528 and collateral of $62,206,716 and the Yacktman Focused Fund had on loan securities valued at $18,098,569 and collateral of $18,895,384. The cash collateral received by the Funds was pooled and at March 31, 2005, was pooled and invested in the following: SECURITY TYPE SECURITY NAME MARKET VALUE - ----------------------------------------------------------------------------- Commercial Paper Concord Capital 4,000,000 Commercial Paper Morgan Stanley 5,000,000 Commercial Paper Leafs LLC 4,000,000 Commercial Paper Goldman Sachs 4,000,000 Commercial Paper Sigma Finance, Inc. 2,999,400 Commercial Paper Premium Asset Trust 6,000,000 Certificate of Deposit Natexis Banque NY 4,998,235 Corporate Note Bayer Land Bank NY 3,000,000 Corporate Note Metlife Global FDO 7,000,000 Money Markets Merrill Lynch Premier Inst. 1,104,465 Repurchase Agreement Credit Suisse First Boston 24,000,000 Repurchase Agreement Lehman Brothers 18,000,000 SECURITY TYPE SECURITY NAME MATURITY MATURITY RATE DATE - ------------------------------------------------------------------------------ Commercial Paper Concord Capital 2.80% 01/11/05 Commercial Paper Morgan Stanley 2.95% 03/07/05 Commercial Paper Leafs LLC 2.86% 04/20/05 Commercial Paper Goldman Sachs 2.96% 04/22/05 Commercial Paper Sigma Finance, Inc. 2.96% 05/17/05 Commercial Paper Premium Asset Trust 2.76% 06/01/05 Certificate of Deposit Natexis Banque NY 2.96% 07/12/05 Corporate Note Bayer Land Bank NY 2.84% 11/23/05 Corporate Note Metlife Global FDO 2.89% 04/28/05 Money Markets Merrill Lynch Premier Inst. 2.53% 01/03/05 Repurchase Agreement Credit Suisse First Boston 2.90% 04/01/05 Repurchase Agreement Lehman Brothers 3.00% 04/01/05 - ------------------------------------------------------------------------------ TAX INFORMATION The following information for the Funds is presented on an income tax basis as of March 31, 2005: THE YACKTMAN THE YACKTMAN FUND FOCUSED FUND Cost of investments $405,298,244 $94,787,929 ================ ================== Gross unrealized appreciation $82,578,329 $18,784,425 Gross unrealized depreciation (5,527,742) (2,338,006) ---------------- ------------------ Net tax unrealized appreciation $77,050,587 $16,446,419 ================ ================== ITEM 2. CONTROLS AND PROCEDURES. (a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. (b) There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant's most recently ended fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 3. EXHIBITS. (a) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. 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. The Yacktman Funds, Inc. By: /s/ Donald A. Yacktman -------------------------------------------- Donald A. Yacktman Principal Executive Officer Date: May 24, 2005 ------------------------------------------ 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/ Donald A. Yacktman --------------------------------------------- Donald A. Yacktman Principal Executive Officer Date: May 24, 2005 ------------------------------------------- By: /s/ Donald A. Yacktman --------------------------------------------- Donald A. Yacktman Principal Financial Officer Date: May 24, 2005 ------------------------------------------- EXHIBIT INDEX (a) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT) EX-99.CERT 2 cert99.txt 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; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent 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: May 24, 2005 /s/ Donald A. Yacktman ------------------------------ Donald A. Yacktman Principal Executive Officer Date: May 24, 2005 /s/ Donald A. Yacktman ------------------------------ Donald A. Yacktman Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----