Multi Managers

Advisor Diversification

Combining the talents of leading investment advisory firms with the expert oversight of an experienced pension fund manager, this supervised, multi-manager approach is the idea behind the American Beacon Funds.

Instead of using just one investment advisor, American Beacon Advisors searches for several leading professionals to manage its equity funds, Balanced Fund, and High Yield and Intermediate Bond Funds. Only those with a time-tested, consistent style qualify for consideration. The firm seeks equity advisors who use a value style designed to achieve strong, sustainable total returns. This style has consistently produced a diverse universe of stocks that has above-average growth potential, yet sells at prices below their perceived economic value.

The Selection Process

American Beacon Advisors reviews prospective investment advisors in three stages. First, American Beacon Advisors searches exclusively for firms with an investment philosophy consistent with their value style. Within that universe, advisors are then evaluated based upon their long term track records.

The next step for selecting investment advisors revolves around our "candidate manager program," whereby prospective advisors often run a paper portfolio for up to two years to validate their style and performance before assigning them actual assets to manage.

If an advisor is hired, they typically manage a portion of the assets of the pension plans of American Airlines, Inc. As the need for a new advisor occurs in one of the mutual funds, American Beacon Advisors chooses from among the best of the pension plan advisors to manage assets of the American Beacon Funds.

The Sub-Advisors of the American Beacon Funds

	American Beacon Advisors, Inc.
	Barrow, Hanley, Mewhinney & Strauss, LLC.
	Black Rock Advisors
	Brandywine Global Investment Management, LLC
	Calamos Advisors LLC.
	Causeway Capital Management LLC
	Dreman Value Management, LLC
	Evercore Asset Management, LLC
	Franklin Advisers, Inc.
	Hotchkis & Wiley Capital Management, LLC
	Lazard Asset Management LLC
	Logan Circle Partners, L.P.
	Metropolitan West Capital Management, LLC
	Morgan Stanley Investment Management Inc.
	NISA Investment Advisors, LLC
	Opus Capital Group, LLC
	Pzena Investment Management, LLC
	SSgA Funds Management, Inc.
	Standish
	Templeton Investment Counsel, LLC
	The Boston Company Asset Management, LLC
	The Renaissance Group LLC
	Winslow Capital Management, Inc.
	Zebra Capital Management, LLC

American Beacon Advisors, Inc. Fort Worth, Texas, is a wholly owned subsidiary of AMR Corporation. Recently, AMR Corporation agreed to sell American Beacon Advisors, Inc. to Lighthouse Holdings, Inc., which is owned by investment funds affiliated with Pharos Capital Group, LLC and TPG Capital. Since 1986, American Beacon Advisors has offered a variety of products and investment advisory services to numerous institutional and retails clients, including a variety of mutual funds, corporate cash management, and separate account management. Clients include defined benefit plans, defined contribution plans, foundations, endowments, corporations, financial planners, and other institutional investors. American Beacon Advisors serves as a sub-advisor to the American Beacon Balanced Fund, American Beacon Retirement Income & Appreciation Fund, American Beacon Intermediate Bond Fund, American Beacon Short-Term Bond Fund and American Beacon Money Market Funds in addition to managing and administrating the multi-manager American Beacon Funds. American Beacon Advisors serves as a sub-advisor to the American Beacon Balanced Fund, American Beacon Retirement Income & Appreciation Fund, American Beacon Intermediate Bond Fund, American Beacon Short-Term Bond Fund and American Beacon Money Market Funds in addition to managing and administrating the multi-manager American Beacon Funds.

Barrow, Hanley, Mewhinney & Strauss, LLC. ("Barrow"), Dallas, Texas, is a professional investment counseling firm that has been providing investment advisory services since 1979. The firm is a subsidiary of Old Mutual Asset Managers (US) LLC, which is a subsidiary of Old Mutual plc, an international financial services group. As of December 31, 2007, Barrow had discretionary investment management authority with respect to approximately $65.4 billion of assets, including approximately $4.7 billion of assets of AMR Corporation and its subsidiaries and affiliated entities. Barrow serves as a sub-advisor to the Balanced, Large Cap Value, Mid-Cap Value, Small Cap Value, Intermediate Bond and Short-Term Bond Funds. The Manager does not presently intend to allocate any of the assets in the Short-Term Bond Fund to Barrow.

BlackRock Advisors, LLC. ("BlackRock"), Plainsboro, New Jersey, is a Delaware limited liability company. BlackRock serves as investment advisor and administrator to the Quantitative Master Series LLC ("Index LLC"), in which the Small Cap Index and International Equity Index Funds invest all of their investable assets. As of December 31, 2007, BlackRock had assets under management of approximately $1.36 trillion.

Brandywine Global Investment Management, LLC ("Brandywine Global ") Philadelphia, PA, is a professional investment advisory firm founded in 1986. Brandywine Global is a wholly owned subsidiary of Legg Mason, Inc. As of December 31, 2007, Brandywine Global had assets under management totaling approximately $49.2 billion, including approximately $4.9 billion of assets of AMR Corporation and its subsidiaries and affiliated entities. Brandywine Global serves as a sub-advisor to the Balanced, Large Cap Value and Small Cap Value Funds.

Calamos Advisors LLC ("Calamos"), Naperville, Illinois, is an institutional money management firm that has specialized in security research and money management since 1977. Calamos is an indirect subsidiary of Calamos Asset Management, Inc. As of December 31, 2007, Calamos had assets under management totaling approximately $46.2 billion, including approximately $168 million of assets of AMR Corporation and its subsidiaries and affiliated entities. Calamos serves as a sub-advisor to the Retirement Income & Appreciation Fund.

Causeway Capital Management LLC ("Causeway"), Los Angeles, California, is an international and global equity investment management firm. Causeway began operations in June 2001. As of December 31, 2007, Causeway had approximately $17.3 billion in assets under management, including approximately $1.9 billion of assets of AMR Corporation and its subsidiaries and affiliated entities. Causeway serves as a sub-advisor to the International Equity Fund.

Dreman Value Management, LLC (“Dreman”), Jersey City, New Jersey, is an independently owned investment advisor founded in 1997, with predecessor firms dating back to 1977. As of December 31, 2007, Dreman had approximately $18.8 billion of assets under management, which included approximately $351 million of assets of AMR Corporation and its subsidiaries and affiliated entities. Dreman serves as a sub-advisor to the Small Cap Value Fund

Evercore Asset Managment, LLC ("Evercore"), is an institutional investment management firm that specializes in building concentrated portfolios of small and mid capitalization equities. The company was founded in 2005 by four longtime Sanford C. Bernstein & Co. partners who have working relationships that span two decades. Evercore is owned 49% by its founders and 51% by its joint venture partner, Evercore Partners, a leading investment banking advisory firm. On February 1st, 2009 Evercore acquired AG Asset Management’s Small- and Mid-Cap Core team. The team has a long track record of managing concentrated portfolios of small and mid cap equities. Total assets under management for Evercore as of June 30, 2010 were $401.3 million.

Franklin Advisers, Inc . ("Franklin"), San Mateo, California, is a wholly-owned subsidiary of Franklin Resources, Inc., a global investment organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management services, through its Franklin, Templeton, Fiduciary Trust, Mutual Series, and Darby Investments subsidiaries. The San Mateo, CA-based company has over 60 years of investment experience and $643.7 billion in assets under management as of December 31, 2007. Of this amount, approximately $1.8 billion were assets of AMR Corporation and its subsidiaries and affiliated entities. Franklin serves as a sub-advisor to the High Yield Bond Fund.

Hotchkis and Wiley Capital Management, LLC ("Hotchkis"), Los Angeles, California, is a professional domestic equity management firm. Hotchkis was formed in October 2001 from the key domestic equity management personnel at Merrill Lynch Investment Managers, L.P., a former sub-advisor to the Funds. As of December 31, 2007, Hotchkis had approximately $27.6 billion in assets under management, including approximately $1.5 billion of assets of AMR Corporation and its subsidiaries and affiliated entities. Hotchkis serves as a sub-advisor to the Balanced, Large Cap Value, and Small Cap Value Funds.

Lazard Asset Management LLC("Lazard") New York, New York, an SEC registered investment advisor, is a subsidiary of Lazard Freres & Co. LLC, a registered broker-dealer. Lazard and its affiliates provide investment management services to client discretionary accounts with assets totaling approximately $126.9 billion as of December 31, 2007, including approximately $713 million of assets of AMR Corporation and its subsidiaries and affiliated entities. Lazard serves as a sub-advisor to the International Equity Fund.

Logan Circle Partners, L.P. ("Logan") Philadelphia, Pennsylvania, is a registered investment advisor and privately help partnership that is majority owned by Logan employees and minority owned by Guggenheim Capital LLC. Jude T. Driscoll, former President and CEO of Delaware Investments, founded Logan in January 2007. As of December 31, 2007, Logan had more than $13.0 billion in assets under management. Of this amount, none were assets of AMR Corporation and its subsidiaries and affiliated entities. Logan serves as a sub-advisor to the High Yield Bond Fund.

Metropolitan West Capital Management, LLC ("MetWest Capital"), Newport Beach, California, is an SEC registered investment advisor founded in 1997. The firm is majority owned by Evergreen Investments, a division of Wachovia Corporation, and minority owned by its key professionals. As of December 31, 2007, MetWest Capital had approximately $9.9 billion of assets under management, which included approximately $3.0 billion of assets of AMR Corporation and its subsidiaries and affiliated entities. MetWest serves as a sub-advisor to the Large Cap Value and Small Cap Value Fund.

Morgan Stanley Investment Management Inc. ("MSIM Inc."), New York, New York, is a direct subsidiary of Morgan Stanley. As of December 31, 2007, MSIM Inc., together with its affiliated asset management companies, managed assets of approximately $589.5 billion, including approximately $461 million of assets of AMR Corporation and its subsidiaries and affiliated entities. MSIM serves an a sub-advisor to the Emerging Markets Fund.

NISA Investment Advisors, LLC ("NISA"), St. Louis, Missouri, is an employee-owned investment advisory firm that began managing assets in 1994. As of December 31, 2007, NISA had assets of approximately $37.2 billion under management, including approximately $2.4 billion of assets of AMR Corporation and its subsidiaries and affiliated entities. NISA serves as a sub-advisor to the Treasury Inflation Protected Securities Fund.

Opus Capital Group, LLC ("Opus"), Cincinnati, Ohio, is an employee-owned registered investment advisor established in 1996. As of December 31, 2007, Opus had assets under management of approximately $1.4 billion, including approximately $431 million of assets of AMR Corporation and its subsidiaries and affiliated entities. Opus serves as a sub-advisor to the Small Cap Value Fund.

Pzena Investment Management, LLC ("Pzena"), New York, New York, is a majority employee-owned investment management firm founded in 1995. As of December 31, 2007, Pzena had assets of approximately $23.7 billion under management, including approximately $49.7 million of assets of AMR Corporation and its subsidiaries and affiliated entities. Pzena serves as a sub-advisor to the Mid-Cap Value Fund.

SSgA Funds Management, Inc., Boston, Massachusetts, is a subsidiary of State Street Corporation. SSgA serves as investment advisor, and State Street serves as administrator, custodian and transfer agent to the State Street Equity 500 Index Portfolio, in which the S&P 500 Index Fund invests all of its investable assets. As of December 31, 2007, SSgA had approximately $1.98 trillion in assets.

Standish Mellon Asset Management Company, LLC ("Standish"), Boston, Massachusetts, is a wholly-owned subsidiary of The Bank of New York Mellon Corporation. As of September 30, 2009, Standish had assets under management of approximately $62 billion. Standish serves as a sub-advisor to the Treasury Inflation Protected Securities Fund.

Templeton Investment Counsel, LLC ("Templeton") Ft. Lauderdale, Florida, is an indirect wholly owned subsidiary of Franklin Resources, Inc., a global investment organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management services, through its Franklin, Templeton, Mutual Series and Fiduciary Trust subsidiaries. The San Mateo, CA-based company has over 60 years of investment experience and more than $643.7 billion in assets under management as of December 31, 2007. Of this amount, approximately $1.8 billion are assets of AMR Corporation and its subsidiaries and affiliated entities. Templeton serves as a sub-advisor to the International Equity Fund.

The Boston Company Asset Management, LLC ("The Boston Company"), Boston, Massachusetts , is a subsidiary of Mellon Financial Corporation. Assets under management as of December 31, 2007 were $53.3 billion, including approximately $2.1 billion of assets of AMR Corporation and its subsidiaries and affiliated entities. Certain of the assets managed by The Boston Company are managed as dual officers of affiliated entities. The Boston Company serves as a sub-advisor to the Small Cap Value, International Equity, and Emerging Markets Funds.

The Renaissance Group, LLC ("Renaissance"), Cincinnati, Ohio, is an investment advisor that has specialized in growth equity management since 1978. Renaissance operates under the name of Renaissance Investment Management and is majority owned by Affiliated Managers Group, Inc., a publicly traded asset management company. As of December 31, 2007, Renaissance had $8.8 billion in assets under management, including approximately $45.6 million of assets of AMR Corporation and its subsidiaries and affiliated entities. Renaissance serves as a sub-advisor to the Large Cap Growth Fund.

Winslow Capital Management, Inc. is an SEC registered investment advisor focused exclusively on large cap growth equity management. Founded in 1992, Winslow Capital is an independent affiliate of Nuveen Investments.