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Delayed liquidation of American Beacon AMR Funds

TheShadowTheShadow
in Fund Discussions
http://www.sec.gov/Archives/edgar/data/809593/000080959315000080/amrextension_12_14_15.htm

497 1 amrextension_12_14_15.htm


Supplement dated December 14, 2015, to the prospectus and summary prospectuses for the following funds and share class, each as previously amended or supplemented:


American Beacon Balanced Fund

American Beacon International Equity Fund

American Beacon Large Cap Value Fund

AMR Class

Prospectus and Summary Prospectuses dated February 27, 2015

The termination and liquidation of the AMR Class shares of the American Beacon Balanced Fund, American Beacon International Equity Fund, and American Beacon Large Cap Value Fund, which were scheduled to occur on or about December 15, 2015, are now scheduled to occur on or about March 15, 2016.


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PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

Comments

  • VintageFreakVintageFreak
    Let me understand this. The AMR class is held at a different custodian? So their sell will put downward pressure on NAV of other classes? I ask because I own BRLVX.
  • heezsafe
    edited December 2015
    Sounds like they are formulating the merger/acquisition plan as they go along. Tune in tomorrow, when they announce yet another change in some other aspect of the transition. Clarity of vision thing..........inspiring. Meanwhile, I'm sure investors are appreciative and entertained, having their money passed around in something resembling the magic trick of three shells and a pea.
  • msf
    edited December 2015
    BRLVX is all but completely unrelated to AAGAX. The only common factor is that they are both part of the American Beacon family. In both cases, AB subcontracts the day to day management to outside managers. Bridgeway for the former, and a combination of Barrow, Hanley; Brandywine; Hotchkis and Wiley; and MFS for the latter. Any overlap in portfolios is coincidental.

    The funds whose AMR share classes are being terminated are all large cap funds - it would be rather hard for their sell off to have much of a market impact. According to the April semi-annual statement of AB Large Cap Value, the AMR class had about $800M in AUM. How much is it going to affect JPMorgan Chase if $25M shares go on the market? (That's currently the fund's largest holding, at 3.3%.)

    Not to mention that for this fund at least, the AMR share class is just a small part. From the same semi-annual statement, there's about $6B in the institutional share class (AADEX), and $4B in the investor (retail) share class (AAGPX), both of which remain open. AMR shares amount to about 7% of the fund.

    In the immortal words of Douglas Adams, Don't Panic.

    Regarding shares being held at different custodians (different from what?) - see previous thread on closing the AMR share class:
    http://mutualfundobserver.com/discuss/discussion/23766/american-beacon-fund-liquidations-and-reopening-of-a-fund-to-new-investors
  • VintageFreakVintageFreak
    I made a mistake. Didn't realize they were complete different funds
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