Fund Evaluator:

American Beacon ARK Transfmt Innov Inv Overview

American Beacon ARK Transfmt Innov Inv (ADNPX) is an actively managed Sector Equity Technology fund. American Beacon launched the fund in 2017.

The investment seeks long-term growth of capital. Under normal circumstances, substantially all of the fund's assets are invested in a portfolio of equity securities including common stocks and other equity investments or ownership interests in business enterprises that are relevant to the fund's investment theme of transformational innovation. The fund's investments in foreign equity securities are principally in developed markets. It invests in American Depositary Receipts (''ADRs'') and securities sold on foreign exchanges and securities denominated in foreign currencies when purchasing foreign equities. The fund is non-diversified.

About American Beacon ARK Transfmt Innov Inv (ADNPX)

There are 1 members of the management team with an average tenure of 9.43 years: Catherine Wood (2017). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Russell 3000 Value TR USD index with a weighting of 100%. American Beacon ARK Transfmt Innov Inv has 44 securities in its portfolio. The top 10 holdings constitute 53.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

American Beacon ARK Transfmt Innov Inv is part of the Equity global asset class and is within the Sector Equity fund group. American Beacon ARK Transfmt Innov Inv has 12.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 86.5%. There is 12.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). American Beacon ARK Transfmt Innov Inv has 0.6% of the portfolio in cash.

Assets Under Management

The fund has $43 million in total assets, which is below the $1 billion average for the Technology category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

ADNPX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The American Beacon ARK Transfmt Innov Inv expense ratio is high compared to funds in the Technology category. American Beacon ARK Transfmt Innov Inv has an expense ratio of 1.38%, which is 12% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. American Beacon ARK Transfmt Innov Inv has a portfolio turnover rate of 46%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 77% for the Technology category.

Recently, in the month of June 2026, American Beacon ARK Transfmt Innov Inv returned -1.0%, which earned it a grade of F, as the Technology category had an average return of 1.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

American Beacon ARK Transfmt Innov Inv has a trailing yield of 0.00%, which is below the 0.05% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

American Beacon ARK Transfmt Innov Inv Grades

Year to date, the fund has returned 6.5%, 27.1 percentage points worse than the category, which translates into a grade of F. The fund has returned 16.6% over the past year (grade of F), 22.9% over the past three years (grade of F) and -8.1% per year over the past five years (grade of F).

For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about American Beacon ARK Transfmt Innov Inv, including its riskiness, submit your email to unlock the rest of the article.