American Beacon Global Evolution Frontier Markets Income Fund eyes February launch

By Toni Weeks

San Luis Obispo, Calif., Nov. 19 - American Beacon Funds announced in an N-1A filing with the Securities and Exchange Commission its plans for a new fund, the American Beacon Global Evolution Frontier Markets Income Fund. The fund is expected to launch in February.

The fund will seek income with capital appreciation as a secondary objective. Under normal circumstances, it will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in investments that are economically tied to frontier market countries. The investments may include securities, currencies and derivative instruments and are expected to include primarily frontier and emerging market sovereign and quasi-sovereign debt instruments.

Frontier market countries change from time to time but are typically characterized by developing financial markets as well as developing economies and political systems. Frontier market countries are generally located in the Asia-Pacific region, Central or Eastern Europe, the Middle East, Central or South America, Caribbean or Africa.

Morten Bugge, Lars Peter Nielsen, Christian Mejrup and Michael Hansen will be the portfolio managers.

The fund will offer A, C, Y, institutional and investor class shares. Ticker symbols have not yet been set.

Shareholder fees will include a 4.75% maximum sales charge on A class shares and a maximum deferred sales charge of 0.5% for A class and 1% for C class shares. All share classes will be subject to a 2% redemption fee that applies to the proceeds of shares redeemed within 90 days of purchase.

Including management fees of 0.55% as well as the effects of an expense reduction and reimbursement agreement with the investment manager, total annual fund operating expense are expected to be 1.66% for A class, 2.41% for C class, 1.26% for Y class, 1.16% for institutional and 1.54% for investor class shares.

Fort Worth-based American Beacon Advisors, Inc. will serve as the fund's investment manager.

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