American Beacon SiM High Yield Fund gives details about redemption fee

By Toni Weeks

San Diego, Feb. 21 - American Beacon SiM High Yield Opportunities Fund gave details of its redemption fee in a 497 filing with the Securities and Exchange Commission.

The 2% fee applies to proceeds of shares redeemed within 90 days of purchase and applies to all five share classes: class A, class C, class Y, institutional class and investor class shares.

According to the filing, the fee is intended to discourage frequent trading and market timing. If shares were purchased on multiple dates, shares held the longest will be redeemed first for purposes of assessing the fee.

The filing said that the redemption fee does not apply to

• Shares acquired through the reinvestment of dividends and distributions;

• Shares acquired through payroll contributions to a retirement or employee benefit plan;

• Shares redeemed to return excess IRA contributions;

• Redemption transactions made within a retirement or employee benefit plan, such as minimum required distributions, loans and hardship withdrawals, or other transactions initiated by a party other than the plan participant;

• Redemptions and exchanges effectuated following an intermediary's automatic investment rebalancing or dollar cost averaging programs or systematic withdrawal plans;

• Redemption and exchange transactions made within a qualified wrap program; and

• Shares acquired to commence operations of the fund.

Fort Worth, Texas American Beacon Advisors, Inc. serves as the fund's investment manager.

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