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American Beacon Treasury Inflation Protected Securities Fund

Portfolio information as of March 31, 2012
  • Summary
  • Performance
  • Overview

Investment Objective

The Fund seeks inflation protection and income primarily through investments in inflation-indexed debt securities issued by the U.S. Treasury Department and backed by the full faith and credit of the U.S. government.

Key Points

  • TIPS are U.S. government guaranteed bonds that protect investors from rising inflation as they guarantee investors a real rate of return above inflation.

  • The Fund invests only in TIPS in order to provide the inflation protection investors expect, without exposure to unnecessary risks associated with other instruments.

  • By benchmarking against the lower duration Barclays Capital 1-10 Year U.S. TIPS Index, the Fund will be less sensitive to changes in real interest rates and the corresponding movement of TIPS prices and therefore the inflation adjustment is likely to be a large component of its return.

Sub-Advisors (%)

NISA Investment Advisors, LLC 50.5
Standish Mellon Asset Management Co. LLC 49.5

 



Investing in debt securities entails interest rate risk which is the risk that debt securities will decrease in value with increases in market interest rates.

American Beacon Funds and American Beacon Treasury Inflation Protected Securities Fund are service marks of American Beacon Advisors, Inc.

Portfolio Statistics (YEARS)

Weighted Average Maturity 5.30
Weighted Average Duration 3.74

Maturity Distribution (%)

0 to 1 Year 2.4
1 to 3 Years 19.9
3 to 5 Years 33.8
5 to 7 Years 7.2
7 to 10 Years 36.8

*May not equal 100% due to rounding



Duration is a measure of price sensitivity relative to changes in interest rates.

American Beacon Funds and American Beacon Treasury Inflation Protected Securities Fund are service marks of American Beacon Advisors, Inc.