American Beacon Redeeming in Cash, Not Renewing Insurance. The company's American Beacon Select Money Market Fund filed a prospectus supplemnt saying, "Effective December 12, 2008, the Money Market Select Fund is no longer requiring that redemption requests be satisfied by delivery of cash and in-kind securities." The filing also says, "The Money Market Select Fund and the U.S. Government Money Market Select Fund participated in the U.S. Department of the Treasury's Temporary Guarantee Program for Money Market Funds, the initial application of which ran through December 18, 2008. On November 24, 2008, the Treasury announced an extension of the Program. The Funds are not participating in the extension period." They explain, "Management believes that the Funds and their shareholders would not benefit from continued participation in the Program, in light of the additional expense that the Funds would bear to participate and the fact that the Program's protection applies only to shareholder accounts of record as of the close of business on September 19, 2008. Accordingly, the Funds have not filed the requisite notice with the Treasury to continue their participation in the Program." Also, see Bloomberg's "Goldman Sachs Bonds Lure Federated as Yields Wither", which says, "Money market funds run by Fidelity Investments and Federated Investors Inc. are looking to buy a new type of bank bond to bolster returns eroded by record-low Treasury yields."
