American Beacon International Equity Fund

Fund information as of June 30, 2008
Fund Overview
Total Fund Assets: $2.3 Billion
  Institutional Class   PlanAhead Class®   Service Class
           
Inception Date 8/7/91   8/1/94   5/1/03
Class Assets $1.0 Billion   $754.3 Million   $3.1 Million
Fund NAV $19.91   $19.65   $19.54
CUSIP 02368A406   02368A794   02368A422
Trading Symbol AAIEX   AAIPX   AAISX
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 Sub-Advisors
 
Causeway Capital Management LLC 31.1%
Templeton Investment Counsel, LLC 30.2%
Lazard Asset Management LLC 19.6%
The Boston Company Asset Management, LLC 19.1%
 
Expense Ratios
 
  Institutional Class   PlanAhead Class   Service Class
           
Gross Expense Ratio 0.68%   093%   1.15%
Net Expense Ratio1 0.67%       1.12%
           
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 long-term capital appreciation primarily through investments in equity securities of issuers based outside the United States.
 
Investment Style

The Fund's bottom-up, value driven process identifies stocks of companies with below average price-to-earnings or price- to-cash-flow ratios, below-average price-to-book value ratios, above-average dividend yields, and above-average return on equity or earnings growth potential. The Fund's sub-advisors select securities based upon a country's economic outlook, market valuation and potential changes in currency exchange rates.

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 Fund will primarily invest in countries comprising the Morgan Stanley Capital International Europe Australasia Far East Index (MSCI EAFE). American Beacon provides each sub-advisor with a limit of the maximum investment allowed in each country.
 
International Equity Fund Total Returns as of 6/30/2008
                         
 
QTR		  
YTD		  
1 YR		  
3 YR*		  
5 YR*		  
10 YR*		  
                         
Institutional Class -3.68   -12.75   -12.84   11.04   16.08   7.33  
PlanAhead Class -3.77   -12.90   -13.08   10.75   15.81   7.09  
Service Class -3.79   -13.00   -13.29   10.48   15.48   6.94  
                         
Lipper Index** -2.21   -11.11   -11.73   12.07   16.22   7.31  
EAFE *** -2.25   -10.96   -10.61   12.84   16.67   5.83  
 

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: International Large-Cap Value Funds
  1YR   3YR   5YR   10YR
# of funds in category 73   42   37   18
               
Institutional Class 43   31   18   9
PlanAhead Class 46   33   20   10
Service Class 48   34   24   N/A
Lipper Quartile
 
Institutional Class 3rd   3rd   2nd   2nd
PlanAhead Class 3rd   4th   3rd   3rd
Service Class 3rd   4th   3rd   N/A
 
Lipper is an independent rating service that ranks mutual funds in various categories by making comparative calculations using total returns.
 
Top 10 Country Weighting
     
  Fund EAFE
United Kingdom 20.9 21.9
Japan 13.5 21.4
France 13.4 10.7
Germany 11.2 9.1
Switzerland 8.1 7.1
Netherlands 6.4 2.6
Italy 3.6 3.8
Spain 3.2 4.1
Sweden 2.8 2.2
Singapore 2.6 1.2
* not an EAFE country
 
Asset Allocation
   
Equity 97.6
Equitized Cash 2.4
 
Portfolio Statistics
     

Equity

Price/Earnings Ratio   10.1
Price/Book Ratio   2.4
Wtd. Avg. Mkt. Cap ($ bil)   65.4
   
3-Year Risk Summary  
R2   0.93
Alpha   -0.10
Beta   0.95
Sharpe Ratio   0.56
Standard Deviation   12.10
 
Top Ten Holdings (%)
PDF View Holdings
 
Siemens AG
 2.8%
BP plc 2.5%
E.ON AG
 2.4%
Total S.A.
 2.2%
Vodafone Group plc
 2.2%
Royal Dutch Shell plc
 2.1%
Sanofi-Aventis S.A.
 2.1%
Novartis AG 2.0%
France Telecom S.A. 1.8%
BAE Systems plc
 1.7%
 
Total Fund Holdings: 178

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 International Large-Cap Value Average. The Lipper International Large-Cap Value Average is calculated by taking an arithmetic average of the returns of the mutual funds in the Lipper International Large-Cap Value Funds category. Lipper is an independent mutual fund research and ranking service.
*** MSCI EAFE Index. The MSCI EAFE Index is a market capitalization weighted index of international stock performance composed of equities from developed markets excluding the U.S. and Canada.

Investing in foreign equities entails additional risks not associated with domestic equities, such as currency fluctuations, economic and political instability and differences in accounting standards.

Performance shown prior to the 5/1/03 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 has been waived. Performance prior to waiving fees was lower than the actual returns shown.

Distributed by Foreside Fund Services, LLC.