American Beacon Mid-Cap Value Fund

Fund information as of Wednesday, June 30, 2010


Fund Overview
Total Fund Assets:   $85.7 Million

Fund Classes: Institutional Y Investor
Inception Date: 11/30/2005 3/1/2010 2/28/2006
Fund NAV: $8.11 $8.11 $8.05
CUSIP: 02368A315 024524308 02368A299
Trading Symbol: AACIX ACMYX AMPAX
       
Fund Classes: Advisor A*  
Inception Date: 6/29/2007 5/17/10  
Fund NAV: $8.00 $8.05  
CUSIP: 02368A273 024524852  
Trading Symbol: AMCSX ABMAX  
*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 a 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.
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 Sub-Advisors
Barrow, Hanley, Mewhinney & Strauss, LLC 50.2%
Pzena Investment Management, LLC 49.8%
 
Expense Ratios
  Gross Net1
Institutional 1.15% 0.98%
Investor 1.36% 1.23%
Advisor 1.60% 1.49%
Y 1.25% 1.08%
A 1.65% 1.49%

1The Institutional Class, Investor Class, Advisor Class and Y Class’ net expense ratio is net of expense reimbursements that American Beacon Advisors has contractually agreed to maintain through February 28, 2011. The A Class’ net expense ratio is net of expense reimbursements that American Beacon Advisors has contractually agreed to waive and/or reimburse distribution fees and other expenses, as applicable, through May 17, 2011.
 
Investment Objective

A multi-manager Fund seeking long-term capital appreciation and current income primarily through investments in mid-market capitalization U.S. stocks.

 
Investment Style

The Fund’s sub-advisors pursue a value style of investing. They select stocks that, in their opinion, have above-average earnings growth potential and are also selling at a discount to the market. 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 value determination is based on each company’s financial profile, including price-to-earnings ratio, price-to-book value ratio, assets carried below market value, financial strength, dividend yield, and growth expectations.

The Fund’s assets are invested primarily in stocks of U.S. companies with market capitalizations between $1 billion and the market capitalizations of the largest company in the Russell Midcap® Index at the time of investment. These may consist of common and preferred stocks, convertible securities, U.S. dollar-denominated American Depositary Receipts, and U.S. dollar-denominated foreign stocks traded on U.S. exchanges.

 
Total Returns
  QTR YTD 1 YR 3 YR* 5 YR* 10 YR* Since
Inception*
Institutional -10.29 -1.46 29.92 -8.14 0.79 N/A 3.36
Investor -10.36 -1.59 29.39 -8.39 0.54 N/A 3.14
Advisor -10.31 -1.60 29.22 -8.38 0.54 N/A 3.14
Y -10.29 -1.46 29.92 -8.14 0.79 N/A 3.36
A (w/out max sales charge) -10.36 -1.59 29.39 -8.39 0.54 N/A 3.14
A (with max 5.75% sales charge) -15.53 -7.26 21.98 -10.19 -0.65 N/A 2.13
 Benchmarks
  QTR YTD 1 YR 3 YR* 5 YR* 10 YR* Since
Inception*
Lipper Mid-Cap Value Funds Index ** -10.66 -3.20 23.19 -8.78 0.76 N/A 2.76
Russell Midcap Value Index *** -9.57 -0.88 28.91 -9.44 0.71 7.55 3.95
                           

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, please visit www.americanbeaconfunds.com or call 1-800-967-9009. 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: Mid-Cap Value Funds
  1 YR 3 YR 5 YR 10 YR
Institutional 24 37 N/A N/A
Investor 30 46 N/A N/A
Advisor 32 45 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 190 173 N/A N/A
 
Lipper Quartile
  1 YR 3 YR 5 YR 10 YR
Institutional 1st 1st N/A N/A
Investor 1st 2nd N/A N/A
Advisor 1st 2nd 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.
 
Sector Weightings 
Financials 28.5%
Consumer Discretionary 17.4%
Industrials 15.4%
Health Care 11.1%
Information Technology 10.3%
Utilities 8.4%
Consumer Staples 3.9%
Energy 3.1%
Materials 1.9%
 
 
Asset Allocation
Equity 93.6%
Cash Equivalent 6.4%
 
Portfolio Statistics
Price-to-Earnings Ratio (P/E) 11.9
Price-to-Book Ratio (P/B) 1.3
Weighted Average Market Cap ($ bil) $7.1
5 Year Earnings Growth -0.1
            
3 Year Risk Summary:
  R2 0.96
  Alpha 1.07
  Beta 0.98
  Sharpe Ratio -0.37
  Standard Deviation 26.30
 
Top Ten Holdings
PDF View Holdings
Willis Group Holdings plc 2.6%
L-3 Communications Holdings, Inc. 2.5%
Stanley Black & Decker, Inc. 2.2%
Fifth Third Bancorp 1.9%
PNC Financial Services Group, Inc. 1.9%
Capital One Financial Corp. 1.6%
Zimmer Holdings, Inc. 1.5%
Delphi Financial Group, Inc. 1.5%
Torchmark Corp. 1.5%
CA, Inc. 1.4%

Total Fund Holdings:   93

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 the securities of mid-capitalization companies involves greater risk and the possibility of greater price volatility than investing in larger capitalization and more established companies. Performance shown prior to the inception of the Institutional Class is that of the AMR Class, which had a similar expense structure and performance to the Institutional Class. Performance shown prior to the inception of the Investor Class is that of the AMR Class to 11/30/05 and the Institutional Class from 11/30/05 to 2/28/06. The returns have not been adjusted for any difference between the fees and expenses of the Investor Class and the historical fees and expenses of the AMR and Institutional Classes. Because the AMR and Institutional Classes both had lower expenses, their performance was better than the Investor Class would have realized during the same period. Performance shown prior to the inception of the Advisor Class is that of the AMR Class to 11/30/05, the Institutional Class from 11/30/05 to 2/28/06, and the Investor Class from 2/28/06 to 6/29/07. 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 AMR, Institutional, and Investor Classes. Because the AMR, Institutional, and Investor Classes had lower expenses, their performance was better than the Advisor Class would have realized during the same period. Performance shown prior to the 3/1/10 inception of the Y Class is that of the AMR Class (formerly the Institutional Class of the Fund) from 6/30/04 to 11/30/05 and the Institutional Class from 11/30/05 to 3/1/10. 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 AMR and Institutional Classes. Because the AMR and Institutional Classes both had lower expenses, their performance was better than the Y Class would have realized during the same period. A portion of the fees charged to the Y Class of the Fund has been waived. Performance prior to waiving fees was lower than the actual returns shown. A portion of the fees charged to the Institutional and Investor Classes has been waived since 2007 and 2006, respectively. A portion of the fees charged to the Advisor Class has been waived since its inception. Performance of the Institutional, Investor, and Advisor Classes prior to waiving fees was lower than the actual returns shown for the respective periods that waivers were in effect. Performance shown prior to the 5/17/10 inception of the A Class is that of the Investor Class. The returns have not been adjusted for any difference between the fees and expenses of the A Class and the historical fees and expenses of the Investor Class. Because the Investor Class had lower expenses, its performance was better than the A Class would have realized during the same period. * Annualized. ** The Lipper Mid-Cap Value Funds Index tracks the results of the 30 largest mutual funds in the Lipper Mid-Cap Value Funds category. Lipper is an independent mutual fund research and ranking service. *** The Russell Midcap Value Index is an unmanaged index of those stocks in the Russell Midcap Index with lower price-to-book ratios and lower forecasted growth values. 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. Maximum Sales Charge is the maximum front-end sales charge (load) imposed on purchases (as a % of offering price).

Distributed by Foreside Fund Services, LLC. American Beacon Funds and American Beacon Mid-Cap Value Fund are service marks of American Beacon Advisors, Inc. Russell Midcap® and Russell Midcap® Value Indices are registered trademarks of Frank Russell Company.