American Beacon Small Cap Value Fund

Fund information as of Wednesday, June 30, 2010


Fund Overview
Total Fund Assets:   $2.6 Billion

Fund Classes: Institutional Y Retirement
Inception Date: 12/31/1998 8/3/2009 5/1/2009
Fund NAV: $15.60 $15.54 $15.11
CUSIP: 02368A638 02368A182 02368A224
Trading Symbol: AVFIX ABSYX ASCVX
       
Fund Classes: Investor Advisor A*
Inception Date: 2/28/1999 5/1/2003 5/17/10
Fund NAV: $15.24 $15.19 $15.23
CUSIP: 02368A620 02368A430 024524845
Trading Symbol: AVPAX AASSX ABSAX
*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 Sub-Advisors
Brandywine Global Investment Management, LLC 31.6%
The Boston Company Asset Management, LLC 22.7%
Opus Capital Group, LLC 20.2%
Barrow, Hanley, Mewhinney & Strauss, LLC 13.3%
Hotchkis and Wiley Capital Management, LLC 11.0%
Dreman Value Management 0.6%
Metropolitan West 0.6%
 
Expense Ratios
  Gross Net1
Institutional 0.85% 0.84%
Investor 1.16% 1.15%
Advisor 1.35% 1.34%
Retirement 1.54% 1.53%
Y 1.12% 1.11%
A1 1.35% 1.34%

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. 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 small 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 of $3 billion or less 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 -10.96 -1.52 28.62 -8.18 0.27 11.05 8.70
Investor -10.98 -1.68 28.23 -8.45 0.00 10.74 8.42
Advisor -11.01 -1.75 28.08 -8.63 -0.23 10.54 8.25
Retirement -11.07 -1.82 27.72 -8.71 -0.29 10.51 8.23
Y -11.00 -1.65 28.25 -8.27 0.21 11.01 8.68
A (w/out max sales charge) -11.04 -1.74 28.14 -8.47 -0.01 10.73 8.41
A (with max 5.75% sales charge) -16.13 -7.42 20.75 -10.26 -1.19 10.08 7.86
 
 Benchmarks
  QTR YTD 1 YR 3 YR* 5 YR* 10 YR* Since
Inception*
Lipper Small-Cap Value Funds Index ** -9.86 -1.26 25.50 -8.14 0.90 8.06 7.55
Russell 2000 Value Index *** -10.60 -1.64 25.07 -9.85 -0.51 7.48 6.86
                           

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: Small-Cap Value Funds
  1 YR 3 YR 5 YR 10 YR
Institutional 59 91 92 5
Investor 70 96 100 9
Advisor 73 100 106 N/A
Retirement 79 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 264 233 175 87
 
Lipper Quartile
  1 YR 3 YR 5 YR 10 YR
Institutional 1st 2nd 3rd 1st
Investor 2nd 2nd 3rd 1st
Advisor 2nd 2nd 3rd N/A
Retirement 2nd 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.
 
Sector Weightings 
Financials 25.6%
Industrials 16.4%
Consumer Discretionary 14.2%
Information Technology 14.0%
Health Care 9.8%
Utilities 5.9%
Materials 5.8%
Energy 4.8%
Consumer Staples 2.8%
Telecommunication Services 0.7%
 
 
Asset Allocation
Equity 94.7%
Cash Equivalent 5.3%
 
Portfolio Statistics
Price-to-Earnings Ratio (P/E) 13.8
Price-to-Book Ratio (P/B) 1.2
Weighted Average Market Cap ($ bil) 1.5
5 Year Earnings Growth 0.6
            
3 Year Risk Summary:
  R2 0.97
  Alpha 1.56
  Beta 0.99
  Sharpe Ratio $(0.35)
  Standard Deviation 27.86
 
Top Ten Holdings
PDF View Holdings
Valassis Communications, Inc. 1.1%
Tidewater, Inc. 0.9%
LifePoint Hospitals, Inc. 0.8%
Aspen Insurance Holdings Ltd. 0.8%
NBTY, Inc. 0.7%
Rent-A-Center, Inc. 0.7%
Hanover Insurance Group, Inc. 0.7%
StanCorp Financial Group, Inc. 0.7%
Ezcorp, Inc. 0.7%
Portland General Electric Co. 0.7%

Total Fund Holdings:   588

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:
Performance shown prior to the 5/1/03 inception of the Advisor Class is that of the Investor Class from 4/1/99 through 4/30/03. 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, their 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 was waived through 2004. Performance prior to waiving fees was lower than the actual returns shown for periods through 2004. 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. 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. Maximum Sales Charge is the maximum front-end sales charge (load) imposed on purchases (as a % of offering price). *Annualized. ** The Lipper Small-Cap Value Funds Index tracks the results of the 30 largest mutual funds in the Lipper Small-Cap Value Funds category. Lipper is an independent mutual fund research and ranking service. *** The Russell 2000 Value Index is an unmanaged index of those stocks in the Russell 2000 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.

 

Distributed by Foreside Fund Services, LLC. American Beacon Funds and American Beacon Small Cap Value Fund are service marks of American Beacon Advisors, Inc. Russell 2000 and Russell 2000 Value Indices are registered trademarks of Frank Russell Company. 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 small capitalization companies involves greater risk and the possibility of greater price volatility than investing in larger capitalization and more established companies