American Beacon Garcia Hamilton Quality Bond Fund (GHQIX)
The Fund’s investment objective is high current income consistent with the preservation of capital.
Overview
AN ANCHOR FOR ASSET MANAGEMENT
Garcia Hamilton & Associates, based in Houston, Texas, is an investment management company that offers high-quality, fixed-income strategies for institutional investors. Founded in 1988, the firm’s diversified client base includes public funds, jointly trusteed plans, endowments and corporations.
Firm inception: 1988
Portfolio Managers:
- Gilbert Andrew Garcia, CFA; industry since 1985
- Jeffrey D. Detwiler, CFA; industry since 1996
- Karen H. Tass, CFA; industry since 2005
- Benjamin D. Monkiewicz, industry since 2010
TOP-DOWN, ACTIVE PORTFOLIO MANAGEMENT
The Fund is actively managed against the Bloomberg U.S. Aggregate Bond Index and maintains a duration range of +/- 25% of that benchmark’s duration. The Fund’s goal is to outperform the benchmark, net of fees, over a full market cycle using a high-quality strategy with less risk, lower volatility and low turnover.
| Fund Details as of 02/12/2026 | |
|---|---|
| Ticker | GHQIX |
| Inception Date | 4/4/2016 |
| Fund Share Class NAV | $8.83 |
|
Total Fund Assets ($M) as of 1/31/2026 |
344.4 |
|
Share Class Assets ($M) as of 1/31/2026 |
54.6 |
| Sub-Advisor % as of 12/31/2025 | |
|
Garcia Hamilton & Associates, LP100.0%
|
|
| Benchmark(s) | |
| Bloomberg US Aggregate Bond Index | |
| CUSIP | 024525255 |
| Gross Expense Ratio (%) | 0.68% |
| Net Expense Ratio (%) 1 | 0.45% |
| Actual SEC 30-Day Yield (%) | 3.83 |
| Unsubsidized SEC 30-Day Yield (%) 2 | 3.62 |
Net asset value (NAV) is the value of one share of the portfolio excluding any sales charges.
Performance
Total Return
- Month End (as of 1/31/2026)
- Quarter End (as of 12/31/2025)
| Name/Class | QTR* | YTD* | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception |
|---|---|---|---|---|---|---|---|
| Garcia Hamilton Quality Bond (R5) | 0.20% | 0.30% | 7.62% | 2.90% | 0.24% | N/A | 1.27% |
| Bloomberg US Aggregate Bond Index | 0.58% | 0.11% | 6.85% | 3.65% | -0.20% | N/A | 1.74% |
| Name/Class | QTR* | YTD* | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception |
|---|---|---|---|---|---|---|---|
| Garcia Hamilton Quality Bond (R5) | 0.78% | 7.76% | 7.76% | 4.23% | 0.08% | N/A | 1.25% |
| Bloomberg US Aggregate Bond Index | 1.10% | 7.30% | 7.30% | 4.66% | -0.36% | N/A | 1.74% |
Performance shown is historical and is not indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, click here.
*Not Annualized.
Important Information: All investing involves risk, including possible loss of principal. Indexes are unmanaged and one cannot invest directly in an index.
For any Class of the Fund that began operating within the 10-year/since inception period shown, the performance shown prior to the inception date of the Class is that of a class (or series of classes) previously in operation. The combined returns have not been adjusted for any difference between the fees and expenses of the Class and the historical fees and expenses of the included previous class (or classes). If the previous class(es) had lower expenses, the resulting performance would be better than the Class would have realized during the same period. If the previous class(es) had higher expenses, the resulting performance would be lower than the Class would have realized during the same period. A portion of fees charged to each Class of Garcia Hamilton Quality Bond Fund has been waived since Fund inception. Performance prior to waiving fees was lower than actual returns shown since inception. Specific information about any Fund may be found in Performance Disclaimers or in the prospectus.
The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market.
“BLOOMBERG®” and the Bloomberg indices listed herein (the “Indices”) are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the Indices (collectively, “Bloomberg”) and have been licensed for use for certain purposes by the distributor hereof (the “Licensee”). Bloomberg is not affiliated with Licensee, and Bloomberg does not approve, endorse, review, or recommend the financial products named herein (the “Products”). Bloomberg does not guarantee the timeliness, accuracy, or completeness of any data or information relating to the Products.
Portfolio
Country Weightings
as of 12/31/2025
| United States | 100.0% |
Top Ten Industry Weightings
as of 12/31/2025
| Sovereign | 51.5% |
| FHLMC Single Family 30yr | 24.4% |
| FNMA Single Family 30yr | 15.6% |
| FHLMC Single Family 20yr | 2.7% |
| FNMA Single Family 20yr | 2.4% |
| Electric Utilities | 1.9% |
| Movies/Entertainment | 1.6% |
Portfolio Statistics
as of 12/31/2025
| Effective Maturity (years) | 10.23 |
| Effective Duration (years) | 7.98 |
3-Year Risk Summary
as of 12/31/2025
| Standard Deviation | 7.87 |
Top Ten Holdings
as of 12/31/2025
| Holding | ||
|---|---|---|
| Federal Home Loan Mortgage Corp., 2.00%, Due 10/01/52 | 5.2% | |
| Federal Home Loan Mortgage Corp., 2.50%, Due 04/01/52 | 3.7% | |
| Federal Home Loan Mortgage Corp., 4.00%, Due 11/01/52 | 3.5% | |
| Federal National Mortgage Association, 3.00%, Due 05/01/52 | 3.2% | |
| Federal National Mortgage Association, 3.50%, Due 10/01/52 | 2.9% | |
| Federal Home Loan Mortgage Corp., 2.50%, Due 03/01/52 | 2.9% | |
| Federal Home Loan Mortgage Corp., 4.00%, Due 10/01/52 | 2.8% | |
| Federal Home Loan Mortgage Corp., 2.50%, Due 09/01/42 | 2.7% | |
| Federal Home Loan Mortgage Corp., 3.00%, Due 05/01/52 | 2.6% | |
| Federal National Mortgage Association, 2.50%, Due 05/01/51 | 2.3% | |
| Total Fund Holdings | 27 | |
U.S. Treasuries are excluded from the list of Top 10 Holdings but are included in the count of Total Fund Holdings.
Duration Distribution
as of 12/31/2025
| 2 to 4 Years | 1.6% |
| 4 to 6 Years | 10.1% |
| 6 to 8 Years | 56.0% |
| 8 to 10 Years | 12.6% |
| 10+ Years | 19.7% |
Excludes cash.
Asset Allocation
as of 12/31/2025
| Fixed Income | 99.8% |
| Cash | 0.2% |
Maturity Distribution
as of 12/31/2025
| 3 to 5 Years | 1.6% |
| 5 to 10 Years | 62.3% |
| 10 to 15 Years | 16.4% |
| 15+ Years | 19.7% |
Excludes cash.
Currency Weightings
as of 12/31/2025
| U.S. Dollar | 100% |
Credit Quality
as of 12/31/2025
| U.S. Treasury | 51.5% |
| U.S. Agency | 45.1% |
| A | 3.5% |
Reflects the ratings assessed by Standard & Poor’s (S&P). Excludes cash.
The use of fixed-income securities entails interest rate and credit risks. Interest rate risk is the risk that debt securities will decrease in value with increases in market interest rates. Credit risk is the risk that a debt issuer will fail to make timely payment of interest or principal; if the credit rating of an issuer declines, then the price of its debt securities may also decline. To the extent the Fund invests more heavily in particular sectors, its performance will be sensitive to factors affecting those sectors. Financial sector companies are heavily regulated and particularly sensitive to interest rate fluctuations. The Fund’s incorporation of environmental, social and/or governance (ESG) considerations in its investment strategy may cause it to underperform funds that do not incorporate these considerations. Please see the prospectus for a complete discussion of the Fund’s risks. There can be no assurances that the investment objectives of this Fund will be met.
Duration is a measure of price sensitivity relative to changes in interest rates. Standard Deviation is a measure of the historical volatility of the Fund’s returns.
S&P credit ratings for long-term obligations (or issuers thereof) are AAA, AA, A, BBB, BB, B, CCC, CC, C and D in decreasing order. For example, obligations rated AAA are judged to be of the highest quality, BBB to be of medium grade, CCC are judged to be speculative and obligations rated D are in default. Obligations rated in one of the four highest categories are considered to be investment grade while all other ratings are considered non-investment grade.
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