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American Beacon Flexible Bond Fund

Portfolio information as of December 31, 2011
  • Summary
  • Performance
  • Overview

Investment Objective

The Fund seeks to provide a positive total return regardless of market conditions.

Key Points

  • The Fund’s investment approach is flexible, allocating investments across a wide range of investment opportunities globally to attempt to achieve positive total return regardless of market conditions over a full market cycle.

  • The Fund will invest in fixed-income instruments without restrictions on their credit quality, although it is anticipated that under normal market conditions, the Fund’s investments in non-investment-grade securities, known also as high yield or "junk" bonds, will be limited to 35% of the Fund’s net exposure.

  • The Fund may have significant exposure to foreign currencies for investment or hedging purposes by purchasing or selling currency derivative instruments and by making direct investments in non-U.S. currencies and in securities denominated in non-U.S. currencies. The Fund may invest a significant portion of its assets in a particular geographic region or country, including emerging markets.

  • The Fund may invest extensively in various derivative instruments to enhance total return, to hedge against fluctuations in securities prices, interest rates or currency exchange rates, to change the effective duration of its portfolio, to manage certain investment risks or as a substitute for purchase or sale of the underlying currencies or securities.

Sub-Advisors (%)

GAM International Management Ltd. 33.5
Pacific Investment Management Company LLC 33.4
Brandywine Global Investment Management, LLC 33.2

*May not equal 100% due to rounding


Fund Materials

Total Fund Assets

$46.2 Million


Because the Fund has a flexible approach to investing, the risks of the Fund are likewise varied. The primary risks fall into one of several broad categories including high yield securities risk, credit risk, foreign investment risk, derivatives risk, interest rate risk and non-diversification risk. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Diversification does not ensure against loss. Investing in debt securities entails interest rate risk that debt securities will decrease in value with increases in market interest rates. Bonds and bond funds with longer durations tend to be more sensitive and more volatile than securities with shorter durations; bond prices generally fall as interest rates rise. Please see the prospectus for a complete discussion of the Fund’s risks.

American Beacon Funds and American Beacon Flexible Bond Fund are service marks of American Beacon Advisors, Inc.