American Beacon Short-Term Bond Fund

Fund information as of June 30, 2008

Fund Overview

Total Fund Assets: $99.8 Million

Institutional Class

PlanAhead Class®

Inception Date

12/3/87

8/1/94

Class Assets

$93.6 Million

6.2 Million

Fund NAV

$8.76

$8.77

CUSIP

02368A562

02368A786

Trading Symbol

AASBX

AALPX

Investment Minimum

$2 Million

$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.

Expense Ratios

	Institutional Class	PlanAhead Class

Gross Expense Ratio	0.38%	0.99%
Net Expense Ratio	0.37%1	0.87%1

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 Fund seeking income and capital appreciation through investments in investment grade debt obligations.

Investment Style

The Fund maintains a relatively short weighted average duration of one to three years. This policy is intended to lessen the Fund's sensitivity to changes in interest rates, By emphasizing investment grade securities, the Fund seeks to provide shareholders with a regular stream of income, while minimizing principal volatility.

American Beacon Advisors, Inc. utilizes a top-down approach, analyzing macroeconomic data to anticipate economic momentum shifts, inflationary trends, the shape of the yield curve, and Federal Reserve policy. American Beacon Advisors, Inc. strives to increase returns by actively managing the duration and quality of the porfolio, consistent with historical relationships among economic growth, inflation and the direction of interest rates.

The Fund typically invests in a diversified mix of debt securities, including obligations of the U.S. Government, its agencies and instrumentalities; corporate bonds, notes and debentures; certificates of deposit; and mortgage-backed securities.

At the time of purchase, all securities are rated in one of the four highest rating categories or, if unrated, deemed to be of compatible quality by American Beacon.

Short-Term Bond Fund Total Returns as of 6/30/2008

	QTR	YTD	1 YR	3 YR*	5 YR*	10 YR*

Institutional Class	0.21	1.98	5.18	4.42	3.32	4.63
PlanAhead Class	0.08	1.71	4.63	3.87	2.75	4.10

Lipper Index**	-0.27	-0.11	2.64	3.25	2.57	3.98
ML 1-3 Gov/Corp Index ***	-0.55	2.10	6.79	4.67	3.37	4.87

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: Short Investment Grade Bond Funds
	1 YR	3 YR	5 YR	10 YR
# of funds in category	263	212	165	84

Institutional Class	45	10	18	12
PlanAhead Class	74	54	57	37

Lipper Quartile

Institutional Class	1st	1st	1st	1st
PlanAhead Class	2nd	2nd	2nd	2nd

Lipper is an independent rating service that ranks mutual funds in various categories by making comparative calculations using total returns.

Sector Weightings vs. Merrill Lynch 1-3 Yr Index

	Fund	ML 1-3 YR Index
Corporates	59.6	21.5
Asset-Backed	18.5	0.0
U.S. Treasury	11.6	47.5
U.S Agency	5.4	31.0
Mortgage-Backed	4.9	0.0

Credit Quality

	Fund	ML 1-3 YR Index
Aaa	45.3	78.0
Aa	24.6	7.0
A	19.3	8.7
Baa	9.0	6.3
Ba	1.8	0.0

Asset Allocation


Fixed Income	96.8
Cash	3.2

Portfolio Statistics

	Fund	ML 1-3 YR Index
Average Credit Quality	Aa2	Aaa
Weighted Average Maturity (yrs)	1.6	1.8
Weighted Average Duration (yrs)	1.4	1.7
Weighted Average Coupon (%)	5.2	4.6

SEC 30-day Yield (%)
Institutional Class	4.43
PlanAhead Class	3.88

Maturity Distribution

	Fund
0 to 1 Year	28.6
1 to 3 Years	58.4
3 to 5 Years	13.0
5 to 7 Years	0.0
7 to 10 Years	0.0

Top Ten Holdings (%)

View All Holdings

Federal Home Loan Mortgage Corp., 4.750%,
Due 11/3/2009

5.1

General Electric Capital Corp., 5.875%,
Due 2/15/2012

3.1

USAA Auto Owner Trust, 5.550%, Due 2/15/2013

3.1

Household Automotive Trust, 4.350%,
Due 6/18/2012

3.0

Banc of America Securities Auto Trust, 4.080%,
Due 4/18/2010

2.5

John Deere Capital Corp., 4.125%,
Due 1/15/2010

2.5

Merrill Lynch & Co., Inc., 6.000%,
Due 2/17/2009

2.5

Comerica Bank, 6.000%, Due 10/1/2008

2.2

MBNA Corp., 7.500%, Due 3/15/2012

2.2

John Hancock Global Funding II, 7.900%,
Due 7/2/2010

2.1

Total Fund Holdings:

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 Short Investment Grade Bond Funds. The Lipper Short Investment Grade Bond Funds Index tracks the results of the 30 largest mutual funds in the Lipper Short Investment Grade Bond Funds category. Lipper is an independent mutual fund research and ranking service.
*** The Merrill Lynch 1-3 Yr. Gov./Corp. Index is a market value weighted performance benchmark for government and corporate fixed-rate debt securities with maturities between one and three years.

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.

A portion of the fees charged to the Fund has been waived. Performance prior to waiving fees was lower than the actual returns shown. Performance shown reflects the Fund’s receipt in December 2006 and March 2008 of class action settlement proceeds that were related to investment activity in 2002. The Fund’s performance that include December 2006 was higher than it would have been absent receipt of the settlement proceeds.

Distributed by Foreside Fund Services, LLC.