American Beacon Balanced Fund

Fund information as of June 30, 2008
Fund Overview
Total Fund Assets: $959.8 Million
  Institutional Class   PlanAhead Class®   Service Class
           
Inception Date 7/17/87   8/1/94   5/31/05
Class Assets $44.9 Million   $148.7 Million   $9.2 Million
Fund NAV $12.92   $12.05   $11.90
CUSIP 02368A109   02368A828   02368A364
Trading Symbol AADBX   AABPX   ABLSX
Investment Minimum $2 Million   $2,500   $2,500
 
Fund Classes
 
Institutional Class shares are for those who make the decisions about where your company's pension funds or corporate cash will be invested or for others with at least $2 million to invest.
PlanAhead Class shares are offered to individual investors, retirement accounts, plan sponsors, discount brokers or other organizations.
Service Class shares are offered to all investors who invest through intermediary organizations, such as broker-dealers or third party administrators.
 
Investment Advisors
 
Brandywine Global Investment Management, LLC 35.4%
Barrow, Hanley, Mewhinney & Strauss, Inc. 35.0%
Hotchkis and Wiley Capital Management, LLC 16.2%
American Beacon Advisors, Inc 13.4%
 
Expense Ratios
 
  Institutional Class   PlanAhead Class   Service Class
           
Gross Expense Ratio 0.58%   0.84%   1.08%
Net Expense Ratio1 0.57%     0.83%     1.07%  
           
1The net expense ratio is net of acquired fund fees and expenses that the Fund incurred indirectly as a result of investment in certain pooled investment vehicles.
 
Investment Objective

A multi-manager Fund seeking income and capital appreciation primarily through investments in U.S. stocks and bonds.

 
Investment Style

The Fund's sub-advisors have the flexibility to vary the proportion of stocks and bonds in the Fund, typically investing between 50% and 70% of its total assets in equity securities and between 30% and 50% of its total assets in debt securities.

For the Fund's stock portion, the sub-advisors pursue a value style of investing. They select stocks that, in their opinion, have above-average earnings growth potential and are also selling at a discount to the market. To determine a company's growth prospects, each of the Fund's sub-advisors uses proprietary methods based upon a combination of internal and external research, and analysis of changing economic trends.The value determination is based on each company's financial profile, including price-to-earnings ratio, price-to-book value ratio, assets carried below market value, financial strength, dividend yield and growth expectations.

The bond portion of the Fund is invested in investment grade debt securities, including obligations of the U.S. Government, its agencies and instrumentalities; corporate bonds, notes and debentures; mortgage-backed securities; domestic, Yankeedollar and Eurodollar bank deposit notes; and certificates of deposit.
 
Balanced Fund Total Returns as of 6/30/2008
                         
 
QTR		  
YTD		  
1 YR		  
3 YR*		  
5 YR*		  
10 YR*		  
                         
Institutional Class -4.01   -9.40   -11.89   2.89   7.41   5.10  
PlanAhead Class -4.06   -9.53   -12.11   2.62   7.07   4.82  
Service Class -4.11   -9.71   -12.33   2.27   6.85   4.71  
                         
Lipper MATAG Funds Index** -1.12   -7.33   -7.42   5.39   7.64   4.97  
Linked Balanced Composite Index *** -3.48   -7.77   -8.98   3.92   7.02   5.52  
 

Performance shown is historical and may not be 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.
 
Lipper Rankings as of 6/30/2008
 
Category: Mixed-Asset Target Allocation Growth Funds
  1 YR   3 YR   5 YR   10 YR
# of funds in category 655   546   417   234
               
Institutional Class 555   445   162   51
PlanAhead Class 565   464   189   70
Service Class 580   478   N/A   N/A
 
Lipper Quartile
 
Institutional Class 4th   4th   2nd   1st
PlanAhead Class 4th   4th   2nd   2nd
Service Class 4th   4th   N/A   N/A
 
Lipper is an independent rating service that ranks mutual funds in various categories by making comparative calculations using total returns.
 
Equity Sector Weightings
     
 
Fund		  
Financials 20.7  
Industrials 14.5  
Energy 11.5  
Health Care 10.9  
Information Technology 9.7  
Consumer Discretionary 9.1  
Consumer Staples 7.6  
Utilities 7.1  
Telecommunication Services 5.1  
Materials 3.8  
 
Bond Sector Weightings vs. LB Aggregate Index
 
  Fund LB Aggregate
Corporates 37.2 23.0
Mortgage-Backed 29.7 43.5
Agency 22.6 10.2
U.S. Treasury 8.6 22.5
Asset-Backed 1.9 0.8
 
Asset Allocation
   
   
Equity 53.3
Fixed Income 37.7
Cash Equivalent 9.0
 
Portfolio Statistics
     

Equity
Fund		  
Price/Earnings Ratio 11.6  
Price/Book Ratio 2.7  
Wtd. Avg. Mkt. Cap ($ bil) 66.3  
   
Fixed Income Fund LB Aggregate
Average Credit Quality Aa-1 Aaa
Weighted Average Maturity (yrs) 7.8 6.7
Weighted Average Duration (yrs) 4.9 4.6
Weighted Average Coupon 5.5 5.4
Yield to Maturity 5.5 5.1
 
Fixed Income Credit Quality Fund  
Aaa 68.0  
Aa 5.7  
A 14.1  
Baa 12.0  
Ba 0.2  
     
 
3-Year Risk Summary Fund
R2 0.95
Alpha -0.08
Beta 1.11
Sharpe Ratio -0.19
Standard Deviation 7.22
 
Top Ten Equity Holdings (%)
PDF View Holdings
 
ConocoPhillips
2.0%
International Business Machines Corp. 1.6%
AT&T, Inc. 1.4%
Bank of America Corp. 1.4%
Occidental Petroleum Corp. 1.2%
Pfizer, Inc. 1.2%
Honeywell International, Inc. 1.2%
Devon Energy Corp. 1.1%
Verizon Communications, Inc. 1.1%
Citigroup, Inc. 1.0%
 
Total Fund Holdings: 424

You should consider the investment objectives, risks, fees and expenses of any mutual fund carefully before investing. This and other information is available in the Fund's prospectus. Please read the prospectus carefully before investing.

* Annualized.
** Lipper Mixed-Asset Target Allocation Growth (MATAG). The Lipper MATAG Funds Index tracks the results of the 30 largest mutual funds in the Lipper MATAG Funds category. Lipper is an independent mutual fund research and ranking service.
***60% Russell 1000® Value Index, 40% Lehman Brothers Aggregate Index. To reflect the Balanced Fund’s allocation of its assets between equity securities and investment grade fixed-income securities, American Beacon has combined the returns of the Russell 1000® Value Index and the Lehman Brothers Aggregate Index in a 60%/40% proportion. Russell 1000® Value Index is a registered trademark of Frank Russell Company. Russell 1000 Value Index is an unmanaged index of those stocks in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values. The Lehman Brothers Aggregate Index is a market value weighted index of government, corporate, mortgage-backed and asset-backed fixed-rate debt securities of all maturities.

Investing in debt securities entails interest rate risk which is the risk that debt securities will decrease in value with increases in market interest rates.
Performance shown prior to the 5/31/05 inception of the Service Class is that of the PlanAhead Class. The returns have not been adjusted for any difference between the fees and expenses of the Service Class and the historical fees and expenses of the PlanAhead Class. Because the PlanAhead Class had lower expenses, its performance was better than the Service Class would have realized during the same period.

A portion of the fees charged to the Service Class of the Fund was waived in 2005. Performance prior to waiving fees was lower than the actual returns shown for 2005.

Distributed by Foreside Fund Services, LLC.