When you are in retirement, you would want to invest in mutual fund for income and limited capital appreciation. Several mutual funds may provide this opportunity. Some funds may be good, some may be fine for short term, and some may be worst. One of the best rated retirement income funds will be presented below. The American Beacon Retirement Income and Appreciation Fund is among the best rated retirement income fund and it is featured in U.S.News best mutual funds.
American Beacon Retirement Income and Appreciation Fund (MUTF: AANPX)
The American Beacon Retirement Income and Appreciation fund is trying to seek income and capital appreciation. This American Beacon fund invests majority of total assets (about 75%) in investment grade fixed-income securities. This fund seeks to achieve 3 to 7 years weighted average duration in the bond’s asset. To enhance the fund’s return, this fund will invest the rest of assets (about 25%) in convertibles strategy. This convertible strategy includes convertible and nonconvertible debt obligations such as non-investment-grade, convertible and non-convertible equity securities, common stocks, preferred stocks, and U.S. dollar-denominated American Depositary Receipts, warrants and options.
Note: This fund is previously known as American Beacon Enhanced Income Fund before 2009.
AANPX Fund Details
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| American Beacon AANPX fund |
- Fund Inception Date: July 1, 2003
- Ticker Symbol: AANPX (Investor class)
- CUSIP: 02368A398
- Beta (3yr): 0.36
- Rank in category (YTD): 95
- Category: Retirement Income
- Distribution: 2.55%
- Capital Gains: N/A
- Expense Ratio: 1.08%
- Net Assets: $154.27 million
- Number of Years Up: 6 years
- Number of Years Down: 1 year
- Annual Turnover Rate: 51%
The fixed income characteristics:
- Average Duration: 4.9 years
- Average Maturity: 6.7 years
- Average Coupon: 4.3%
updated on July 24, 2011
This American Beacon Retirement Income & Appreciation Investor fund has a 1.08% annual expense ratio. This fee is a bit higher than the average expense fee in the Retirement Income category which is 0.60%. These fund assets are divided among the investment sub-advisors such as American Beacon Advisors Inc (72.2%) and Calamos Advisors LLC (27.8%). The fund’s lead manager is John F. Calamos, Jr. since the fund inception date in July 2003. As part of no load fund, this best rated fund doesn’t have a sales load fee and a management fee. The fund has a dividend yield of 2.55%. The fund's net assets are $154 million.
This AANPX fund receives 5 star rating from Morningstar. The fund has returned 6.64% over the past year and 6.47% over the past 3 years. The fund has its best performance year in 2009 with 14.21%. Its worst performance return occurred in 2008 with -4.37%. AANPX has 2.01% YTD return and 6.02% of 5-year average return.
You will need $2,500 minimum balance to invest in this best fund in your regular brokerage account with $50 minimum subsequent investment. This fund is not available in IRA account. This top balanced fund is available to many investors. Investors can buy this fund through 68 brokerages. They are JP Morgan, T. Rowe Price, Dreyfus NTF, Vanguard NTF, Schwab Retail, LPL SAM Eligible, Td Ameritrade, Inc., etc.
This fund also has other classes such as Y Class (Ticker: ACRYX), A Class (Ticker: AAPAX) and C Class (Ticker: ABACX). The American Beacon Retirement Income and Y fund has the lowest expense ratio with 0.81% per year.
The asset allocation of this fund as of March 2011 are 72.7% in fixed income, 14.0% in convertible obligations, 6.1% in cash equivalent and 7.2% in equity. This fund has a total of 304 holdings. The top bond sectors are 38.6% in corporate, 22.6% in U.S. Treasury, 15.8% in Mortgage-Backed and 13.8% in convertibles. Top equity sectors in this fund include Technology (30.12%), Industrials (22.21%), Energy (18.96%), Financial Services (10.33%), and Consumer Defensive (7.52%).
Disclosure: No Position
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