American Beacon International Equity Fund

Fund information as of Wednesday, June 30, 2010


Fund Overview
Total Fund Assets:   $1.2 Billion

Fund Classes: Institutional Y Retirement
Inception Date: 8/7/1991 8/3/2009 5/1/2009
Fund NAV: $13.69 $14.11 $13.76
CUSIP: 02368A406 02368A190 02368A216
Trading Symbol: AAIEX ABEYX ABIRX
       
Fund Classes: Investor Advisor A*
Inception Date: 8/1/1994 5/1/2003 5/17/2010
Fund NAV: $13.50 $13.78 $13.50
CUSIP: 02368A794 02368A422 02454746
Trading Symbol: AAIPX AAISX AIEAX
*Net asset value (NAV) is the value of one share of the portfolio excluding any sales charges.
 
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 $250,000 to invest.
Investor Class shares are offered to individual investors, retirement accounts, plan sponsors, discount brokers or other organizations.
Advisor Class shares are offered to all investors who invest through intermediary organizations, such as broker-dealers or third party administrators.
Retirement Class is offered primarily to small retirement plans and investors who invest through retirement plan services.
Y Class shares of the American Beacon Funds are offered primarily to retirement plans and advisors that require revenue sharing from the Funds.  The minimum investment per plan or advisor for this fund class is $100,000.
A Class shares, with applicable front-end sales charges, are available to retail investors who invest directly through intermediary organizations, such as broker-dealers or other financial intermediaries, or through employee directed benefit plans, or directly with the Funds.

 
Investment Advisors
Causeway Capital Management LLC 29.4%
Templeton Investment Counsel, LLC 28.0%
The Boston Company Asset Management, LLC 22.1%
Lazard Asset Management LLC 20.5%
 
Expense Ratios
  Gross Net1
Institutional 0.74% 0.73%
Investor 1.06% 1.05%
Advisor 1.46% 1.45%
Retirement 1.49% 1.48%
Y 0.7% 0.69%
A 1.24% 1.23%

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. The Fund’s A Class expenses are based on estimated expenses expected to be incurred for the fiscal year ending October 31, 2010.
 
Investment Objective
A multi-manager Fund seeking long-term capital appreciation and current income primarily through investments in equity securities of issuers based outside of 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.

 
Total Returns
  QTR YTD 1 YR 3 YR* 5 YR* 10 YR* Since
Inception*
Institutional -14.44 -13.46 7.33 -12.65 0.92 2.40 7.01
Investor -14.56 -13.68 6.96 -12.91 0.64 2.16 6.78
Advisor -14.57 -13.71 6.66 -13.16 0.36 1.95 6.66
Retirement -14.64 -13.84 6.58 -13.20 0.33 1.94 6.65
Y -14.48 -13.54 7.30 -12.65 0.92 2.40 7.01
A (w/out max sales charge) -14.56 -13.68 6.96 -12.91 0.64 2.16 6.78
A (with max 5.75% sales charge) -19.45 -18.63 0.82 -14.61 -0.55 1.56 6.44
 
 Benchmarks
  QTR YTD 1 YR 3 YR* 5 YR* 10 YR* Since
Inception*
Lipper International Funds Index ** -12.54 -10.89 9.50 -11.35 2.62 1.21 6.16
MSCI EAFE Index *** -13.97 -13.23 5.92 -13.38 0.88 0.16 4.61
                           

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. Please note that the recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future.

 
Lipper Rankings
Category: International Large-Cap Value Funds
  1 YR 3 YR 5 YR 10 YR
Institutional 12 15 16 20
Investor 15 21 20 22
Advisor 17 28 29 N/A
Retirement N/A N/A N/A N/A
Y N/A N/A N/A N/A
A N/A N/A N/A N/A

# of Funds in the Category 123 103 74 43
 
Lipper Quartile
  1 YR 3 YR 5 YR 10 YR
Institutional 1st 1st 1st 2nd
Investor 1st 1st 2nd 3rd
Advisor 1st 2nd 2nd N/A
Retirement N/A N/A N/A N/A
Y N/A N/A N/A N/A
A N/A N/A N/A N/A
 
Lipper is an independent rating service that ranks mutual funds in various categories by making comparative calculations using total returns.
 
Top Ten Country Weightings 
   
United Kingdom 21.0%
Japan 18.1%
France 11.4%
Germany 10.0%
Switzerland 9.3%
Netherlands 5.1%
Spain 4.0%
Italy 3.0%
Singapore 2.8%
Hong Kong/China 2.7%
 
 
Asset Allocation
Equity 95.7%
Cash Equivalent 4.3%
 
Portfolio Statistics
Price-to-Earnings Ratio (P/E) 10.8
Price-to-Book Ratio (P/B) 1.4
Weighted Average Market Cap ($ bil) $39.0
5 Year Earnings Growth -0.8
            
3 Year Risk Summary:
  R2 0.97
  Alpha 0.96
  Beta 1.02
  Sharpe Ratio $(0.55)
  Standard Deviation 25.66
 
Top Ten Equity Holdings (%)
PDF View Holdings
Sanofi-Aventis S.A. 2.5%
Siemens AG 2.4%
Royal Dutch Shell plc 2.0%
HSBC Holdings plc 1.9%
DBS Group Holdings Ltd. 1.8%
Novartis 1.7%
Roche Holding AG 1.7%
GlaxoSmithKline plc 1.7%
Vodafone Group plc 1.4%
Total S.A. 1.4%

Total Fund Holdings:   179

Securities of the Fund may only be sold by offering the Fund’s Prospectus and Summary Prospectus. You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The Prospectus and Summary Prospectus contains this and additional information regarding the Fund. To obtain a Prospectus and Summary Prospectus, please contact your Financial Advisor, call 1-800-967-9009 or visit www.americanbeaconfunds.com The Prospectus and Summary Prospectus should be read carefully before investing.

IMPORTANT INFORMATION:
There is no guarantee that the investment objectives will be met. Indices are unmanaged and one cannot invest directly in an index. Investing in foreign equities entails additional risk 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 Advisor Class is that of the Investor Class. The returns have not been adjusted for any difference between the fees and expenses of the Advisor Class and the historical fees and expenses of the Investor Class. Because the Investor Class had lower expenses, its performance was better than the Advisor Class would have realized during the same period. A portion of the fees charged to the Advisor Class of the Fund has been waived. Performance prior to waiving fees was lower than the actual returns shown. Performance shown prior to the 5/1/09 inception of the Retirement Class is that of the Advisor class from 5/31/2003 through 4/30/2009 and the Investor Class prior to 5/31/2003. The returns have not been adjusted for any difference between the fees and expenses of the Retirement Class and the historical fees and expenses of the Advisor and Investor Classes. Because the Advisor and Investor classes had lower expenses, their performance was better than the Retirement Class would have realized during the same periods. Performance shown prior to the 8/3/09 inception of the Y Class is that of the Institutional Class. The returns have not been adjusted for any difference between the fees and expenses of the Y Class and the historical fees and expenses of the Institutional Class. Because the Institutional Class had lower expenses, its performance was better than the Y Class would have realized during the same period. *Annualized. The Lipper International Funds Index tracks the results of the 30 largest mutual funds in the Lipper International Funds category. Lipper is an independent mutual fund research and ranking service. ***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. The P/E Ratio of a stock is calculated by dividing the current price by forecasted twelve-month earnings per share. The P/B Ratio of a stock is calculated by dividing the current price by book value per share. R-squared (R2) is the percentage of the Fund’s three-year return that is explained by movements in its benchmark index. Alpha is a measure of the Fund’s expected performance versus the benchmark, adjusted for relative risk. Beta is a measure of the Fund’s volatility versus the benchmark. Sharpe Ratio is a measure of the Fund’s return per unit of total risk. Standard Deviation is a measure of the historical volatility of the Fund’s returns.

Distributed by Foreside Fund Services, LLC. American Beacon Funds and American Beacon International Equity Fund are service marks of American Beacon Advisors, Inc.