American Beacon Enhanced Income Fund

Fund information as of June 30, 2008
Fund Overview
Total Fund Assets: $133.4 Million
  PlanAhead Class®        
       
Inception Date 7/1/03    
Class Assets $133.4 Million    
Fund NAV $9.89    
Gross Expense Ratio 0.95%    
Net Expense Ratio1 0.94%    
CUSIP 02368A398    
Trading Symbol AANPX    
Investment Minimum $2,500    
           
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.
 
PlanAhead Class shares are offered to all investors, including investors using intermediary organizations such as discount brokers or plan sponsors and retirement accounts.
 
Investment Advisors
 
American Beacon Advisors, Inc 76.0%
Calamos Advisors LLC 24.0%
 
Investment Objective
A multi-manager Fund seeking income and capital appreciation by investing primarily in investment grade fixed-income securities and, to a lesser degree, in convertible and non-convertible debt obligations without regard to credit quality, as well as equity securities, warrants and options.
 
Investment Style

Approximately 75% of the Fund's total assets are invested in fixed-income securities considered investment grade at the time of purchase. In an attempt to enhance the return of the Fund beyond the income offered by investment grade fixed-income securities, the Fund's remaining total assets are invested in convertible and non-convertible debt obligations without regard to credit quality, as well as equity securities, warrants and options. The Fund seeks to maintain a weighted average duration of one to five years in the investment grade fixed-income portion of the Fund. The average term to maturity of the fixed-income securities held in Calamos' portion of the Fund will typically range from three to ten years. In addition to fixed-income securites, Calamos may invest up to 40% of its portion of the Fund's total assets in non-convertible equity stocks and U.S. dollar-denominated American Depositary Receipts.
 
Enhanced Income Fund Total Returns as of 6/30/2008
                         
 
QTR		  
YTD		  
1 YR		  
3 YR*		  
5 YR*		   Since
Inception*		  
                         
PlanAhead Class® -0.52   -0.90   3.99   4.11   3.83   3.83  
                         
Lipper Index** -1.10   -0.98   3.65   2.89   3.18   3.18  
75 / 25 Benchmark *** -0.34   -0.15   3.72   4.54   4.30   4.29  
 

Performance shown is historical and may not beindicative 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: Intermediate Investment Grade Debt Funds
  1 YR   3 YR   5 YR    
# of funds in category 557   464   393    
               
PlanAhead Class 311   34   53    
Past performance is no guarantee of future results.
Lipper Quartile
PlanAhead Class 3rd   1st   1st    
Lipper is an independent rating service that ranks mutual funds in various categories by making comparative calculations using total returns.
 
Sector Weightings vs. LB Gov./Credit Intermediate Index
     
 
FUND
LB Index
Corporates
 32.7
 23.0
Mortgage Backed
 31.0
 43.5
U.S. Treasury
 24.8
 22.5
U.S. Agency
 7.8
 10.2
Asset-Backed
 3.7
 0.8
 
Credit Quality
 
  FUND  
Aaa 71.0  
Aa 9.7  
A 10.4  
Baa 4.0  
Ba 2.8  
B 1.8
Caa 0.3  
 
Asset Allocation
   
Fixed Income 82.1
Convertibles 11.3
Equities 4.9
Cash 1.7
 
Portfolio Statistics
     
     
Average Credit Quality   AA1
Weighted Average Maturity (yrs)   6.5
Weighted Average Duration (yrs)   4.6
Weighted Average Coupon   5.5
 
SEC 30-day Yield (%)  
PlanAhead Class   3.43
 
 
Top Ten Equity Holdings
PDF View All Holdings
 
Federal Home Loan Mortgage Corporation, Pool # G08079, 5.000%, Due 9/1/2035
 1.8%
Federal National Mortgage Association, 7.250%, Due 1/15/2010
 1.6%
Federal National Mortgage Association, Pool
# 257043, 6.000%, Due 1/1/2038
 1.6%
Federal Home Loan Mortgage Corp., 5.125%,
Due 4/18/2011
 1.5%
Federal Home Loan Mortgage Corporation, Pool # G08273, 5.500%, Due 6/1/2038
 1.5%
Federal National Mortgage Association, Pool
# 889572, 5.500%, Due 6/1/2038
 1.5%
Federal Home Loan Bank, 4.500%,
Due 9/16/2013
 1.2%
Citigroup, Inc., 5.125%, Due 2/14/2011
 1.2%
Federal National Mortgage Association, Pool
# 745275, 5.000%, Due 2/1/2036
 1.2%
Federal National Mortgage Association, Pool
# 745418, 5.500%, Due 4/1/2036
 1.2%
 
Total Fund Holdings: 211

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'sprospectus. Please read the prospectus carefully before investing.

* Annualized.
** Lipper Intermediate Investment Grade Debt Funds. The Lipper Intermediate Investment Grade Debt Funds Index tracks the results of the 30 largest mutual funds in the Lipper Intermediate Investment Grade Debt Funds category. Lipper is an independent mutual fund research and ranking service.
*** 75% Lehman Bros. Gov./Credit Intermediate Index / 25% Merrill Lynch All U.S. Convertibles Index. The Lehman Bros. Gov./Credit Intermediate Index is an unmanaged index of investment grade corporate and government debt issues with maturities between one and ten years. The Merrill Lynch All U.S. Convertibles Index is an unmanaged index of domestic securities convertible into U.S. dollar-denominated common stock, ADRs or cash equivalents.

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.

Distributed by Foreside Fund Services, LLC.