American Beacon TwentyFour Strategic Income Fund (TFGIX)
The Fund’s investment objective is to seek high current income and, secondarily, capital appreciation.
Overview
FIXED-INCOME INVESTMENTS FROM A GLOBAL PERSPECTIVE
TwentyFour, a boutique investment firm in New York, provides a global perspective on fixed-income investments that is unique among U.S. managers in the credit sector. The firm is a subsidiary of TwentyFour Asset Management LLP in the U.K. TwentyFour offers highly transparent products and seeks to achieve risk-adjusted returns while retaining a strong focus on capital preservation. Accordingly, TwentyFour has the capability to use a wide-range of investment tools to pursue the best possible returns while adhering to rigorous, detail-oriented investment guidelines.
Firm inception: 2008
Portfolio Managers:
- Eoin Walsh, founding partner; industry since 1998
- David Norris; industry since 1987
- Felipe Villarroel; industry since 2009
DISTINGUISHING CHARACTERISTICS
- The Fund’s sub-advisor has significant latitude to take advantage of prevailing market conditions, allowing investors to benefit from a high-conviction portfolio comprised of global bonds and fixed-income instruments.
- The Fund, which is not managed against traditional market benchmarks, seeks alpha through diversification and helps mitigate interest-rate risk by investing broadly across global fixed-income markets.
- The Fund may invest in, or obtain exposure to, debt instruments from a broad range of fixed-income assets, including investment-grade bonds, high-yield bonds, government bonds, asset-backed securities and other bonds.
- The Fund aims to maximize risk-adjusted returns, meaning that certain securities may be acquired on a “buy-and-hold” basis while others may be traded opportunistically.
| Fund Details as of 01/23/2026 | |
|---|---|
| Ticker | TFGIX |
| Inception Date | 4/3/2017 |
| Fund Share Class NAV | $8.98 |
|
Total Fund Assets ($M) as of 12/31/2025 |
540.3 |
|
Share Class Assets ($M) as of 12/31/2025 |
14.0 |
| Sub-Advisor % as of 9/30/2025 | |
|
TwentyFour Asset Management (US) LP100.0%
|
|
| Benchmark(s) | |
| Bloomberg Global-Aggregate Total Return Index Value Hedged USD | |
| CUSIP | 024526691 |
| Gross Expense Ratio (%) | 0.88% |
| Net Expense Ratio (%) 1 | 0.73% |
| Actual SEC 30-Day Yield (%) | 4.59 |
| Unsubsidized SEC 30-Day Yield (%) 2 | 4.52 |
Net asset value (NAV) is the value of one share of the portfolio excluding any sales charges.
Performance
Total Return
- Month End (as of 12/31/2025)
- Quarter End (as of 12/31/2025)
| Name/Class | QTR* | YTD* | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception |
|---|---|---|---|---|---|---|---|
| TwentyFour Strategic Income (R5) | 1.44% | 7.34% | 7.34% | 9.35% | 3.27% | N/A | 4.77% |
| Bloomberg Global-Aggregate Total Return Index Value Hedged USD | 0.78% | 4.86% | 4.86% | 5.12% | 0.34% | N/A | 2.23% |
| Name/Class | QTR* | YTD* | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception |
|---|---|---|---|---|---|---|---|
| TwentyFour Strategic Income (R5) | 1.44% | 7.34% | 7.34% | 9.35% | 3.27% | N/A | 4.77% |
| Bloomberg Global-Aggregate Total Return Index Value Hedged USD | 0.78% | 4.86% | 4.86% | 5.12% | 0.34% | N/A | 2.23% |
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 TwentyFour Strategic Income Fund has been waived since Fund inception. Performance prior to waiving fees was lower than actual returns shown for periods when fees were waived. Specific information about any Fund may be found in Performance Disclaimers or in the prospectus.
The Bloomberg Global-Aggregate Total Return Index Value Hedged USD is a flagship measure of global investment-grade debt from a multitude of local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.
“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 9/30/2025
| United States | 29.6% |
| United Kingdom | 23.1% |
| Eurozone | 11.5% |
| Germany | 10.3% |
| Spain | 5.1% |
| Netherlands | 5.0% |
| France | 4.4% |
| Italy | 3.7% |
| Ireland | 1.9% |
| Austria | 1.1% |
Excludes cash and currency forwards.
Top Ten Industry Weightings
as of 9/30/2025
| Collateralized Loan Obligation | 17.3% |
| Major Banks | 16.1% |
| U.S. Treasury | 12.9% |
| Non-U.S. Government | 7.6% |
| Multi-Line Insurance | 5.2% |
| Regional Banks | 4.7% |
| Financial Conglomerates | 4.2% |
| Savings Banks | 3.6% |
| Investment Banks/Brokers | 3.3% |
| Finance/Rental/Leasing | 3.2% |
Portfolio Statistics
as of 9/30/2025
| Effective Maturity (years) | 7.52 |
| Effective Duration (years) | 4.32 |
3-Year Risk Summary
as of 9/30/2025
| Standard Deviation | 5.13 |
Top Ten Holdings
as of 9/30/2025
| Holding | ||
|---|---|---|
| Government of Germany, 2.60%, Due 08/15/34 | 3.9% | |
| Government of Germany, 2.50%, Due 02/15/35 | 2.6% | |
| Rothesay Life Plc, 5.00%, Due 10/01/75 | 1.3% | |
| Nationwide Building Society, 7.50%, Due 10/01/75 | 1.2% | |
| NATIONWIDE BLDG SOCIETY 12/99 1, 10.25%, Due 12/06/99 | 1.2% | |
| UniCredit S.p.A., 6.50%, Due 10/01/75 | 1.0% | |
| Direct Line Insurance Limited, 4.75%, Due 10/01/75 | 0.8% | |
| Achmea B.V., 4.63%, Due 10/01/75 | 0.7% | |
| PGH (Cayman), 5.75%, Due 10/01/75 | 0.7% | |
| Coventry Building Society, 8.75%, Due 10/01/75 | 0.7% | |
| Total Fund Holdings | 319 | |
Does not include currency forwards, interest rate derivatives, commodity derivatives, currency options, equity index futures and derivative offsets, included in the Fund’s total net assets. 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 9/30/2025
| 0 to 2 Years | 27.5% |
| 2 to 4 Years | 20.1% |
| 4 to 6 Years | 19.1% |
| 6 to 8 Years | 27.2% |
| 8 to 10 Years | 4.1% |
| 10+ Years | 2.1% |
Asset Allocation
as of 9/30/2025
| Fixed Income | 94.6% |
| Cash | 5.4% |
Maturity Distribution
as of 9/30/2025
| 0 to 3 Years | 18.9% |
| 3 to 5 Years | 15.5% |
| 5 to 10 Years | 54.5% |
| 10 to 15 Years | 8.8% |
| 15+ Years | 2.3% |
Excludes cash.
Currency Weightings
as of 9/30/2025
| U.S. Dollar | 98.7% |
| Non-U.S. Dollar | 1.3% |
Credit Quality
as of 9/30/2025
| U.S. Treasury | 12.9% |
| AAA | 9.8% |
| AA | 0.4% |
| A | 3.7% |
| BBB | 27.7% |
| BB | 35.1% |
| B | 3.8% |
| Below CCC | 0% |
| Not Rated | 6.5% |
Reflects the rating assessed by Standard & Poor’s (S&P). Excludes cash.
Securities of the Fund may only be sold by offering the Fund’s prospectus and summary prospectus. You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and additional information regarding the Fund. To obtain a prospectus and summary prospectus, please contact your financial advisor, call 800.967.9009 or visit americanbeaconfunds.com. The prospectus and summary prospectus should be read carefully before investing.
The use of fixed-income securities entails interest rate and credit risks. Derivative instruments may be highly sensitive to market factors, have less liquidity than other investments and involve the potential for losses to exceed the amount invested. 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. Investments in high-yield securities (commonly referred to as “junk bonds”), including loans, CLOs, restricted securities and floating-rate securities, are subject to greater levels of credit, interest rate, market and liquidity risks than investment-grade securities. The Fund may have high portfolio turnover risk, which could increase the Fund’s transaction costs and possibly have a negative impact on performance. 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. To the extent the Fund invests more heavily in a particular country or geographic region, its performance will be sensitive to factors affecting that country or region. Investing in foreign and emerging markets may involve heightened risk due to currency fluctuations and economic and political risks. Geopolitical and other events have led to market disruptions causing adverse changes in the value of investments broadly. Changes in value may be temporary or may last for extended periods. 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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