American Beacon Intermediate Bond Fund

Fund information as of June 30, 2008
Fund Overview
Total Fund Assets: $160.4 Million
  Institutional Class        
           
Inception Date 9/15/97        
Class Assets $160.4 Million        
Fund NAV $10.15        
CUSIP 02368A570        
Trading Symbol AABDX        
Investment Minimum $2 Million        
 
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.
 
Investment Sub-Advisors
 
American Beacon Advisors, Inc. 50.5%
Barrow, Hanley, Mehwinney & Strauss, Inc. 49.5%
 
Expense Ratios
 
  Institutional Class        
           
Gross Expense Ratio 0.35%        
Net Expense Ratio1 0.34%        
           
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 through investments in investment grade debt obligations.

 
Investment Style

The Fund seeks to maintain duration of three to seven years. By emphasizing investment grade securities, the Fund seeks to provide shareholders with a regular stream of income, while minimizing principal volatility.

The Fund invests in a diversified range of debt obligations, including securities of the U.S. Government, its agencies and instrumentalities; corporate bonds, notes and debentures; mortgage-backed and asset-backed securities, and other investments. At the time of purchase, all securities are rated in one of the four highest rating categories or, if unrated, deemed to be of comparable quality by the Fund's investment advisors.
 
Intermediate Bond Fund Total Returns as of 6/30/2008
                         
 
QTR		  
YTD		  
1 YR		  
3 YR*		  
5 YR*		  
10 YR*		  
                         
Institutional Class -1.28   1.41   7.60   4.30   3.92   5.36  
                         
Lipper Index** -1.10   -0.98   3.65   2.89   3.18   5.04  
LB Aggregate Index *** -1.02   1.13   7.13   4.09   3.86   5.68  
 

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: Intermediate Investment Grade Funds
  1YR   3YR   5YR    
# of funds in category 557   464   393    
               
Institutional Class 43   21   34    
 
Lipper Quartile
 
Institutional Class 1st   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 Aggregate
     
  Fund
 LB Aggregate
Mortgage-Backed 36.5 43.5
Corporates 27.5 23.0
Treasury 18.9 22.5
Agency 15.3 10.2
Asset-Backed 1.8 0.8
 
Credit Quality
 
  Fund LB Aggregate
Aaa 71.9 78.7
Aa 7.2 5.4
A 12.8 8.4
Baa 7.8 7.5
Less than Baa 0.3 0.0
 
Asset Allocation
 
     
Fixed Income 99.5  
Cash Equivalents 0.5  
 
Portfolio Statistics
     


Fund
LB Aggregate
Average Credit Quality Aa1 AAA
Weighted Average Maturity (yrs) 6.4 6.7
Weighted Average Duration (yrs) 4.7 4.6
Weighted Average Coupon (%) 5.3 5.4
 
SEC 30-day Yield (%)  
Institutional Class 4.61
 
Maturity Distribution
     


Fund
0 to 3 Year 20.4  
3 to 5 Years 27.8  
5 to 7 Years 23.2  
7 to 10 Years 18.2
10 to 15 Years 3.7
15+ Years 6.7
 
Top Ten Holdings (%) (excluding Treasuries)
PDF View All Holdings
 

Federal Home Loan Bank, 4.500%,
Due 9/16/2013

 3.4
Federal National Mortgage Association, 7.250%, Due 1/15/2010 3.3
Federal Home Loan Mortgage Corp., 5.125%, Due 4/18/2011 2.9
Federal Home Loan Mortgage Corporation,
Pool # A73703, 5.000%, Due 3/1/2038		 1.4
Federal National Mortgage Association, 5.375%, Due 6/12/2017 1.3
Federal Home Loan Mortgage Corp., 5.250%, Due 2/24/2011 1.2
Federal National Mortgage Association, Pool # 256552, 5.500%, Due 1/1/2037 1.1
Federal National Mortgage Association, Pool # 953868, 6.000%, Due 11/1/2037 1.0
Federal Home Loan Mortgage Corp., 5.400%, Due 3/17/2021 1.0
Federal National Mortgage Association, Pool # 844809, 5.000%, Due 11/1/2035 1.0
 
Total Fund Holdings: 277

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 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.
*** The Lehman Brothers Aggregate Index is a market value weighted performance benchmark for 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 3/1/99 inception of the Institutional Class is that of a share class no longer in operation. The returns have not been adjusted for any difference between the fees and expenses of the Institutional Class and the historical fees and expenses of this other class. Because this other class had higher expenses, its performance was lower than the Institutional Class would have realized during the same period. 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.