American Beacon Balanced Fund

Fund information as of December 31, 2009


Fund Overview
Total Fund Assets: $842.0 Million
  Institutional Class   Investor Class   Advisor Class
           
Inception Date 7/17/87   8/1/94   5/31/05
Fund NAV $12.00   $11.11   $11.54
CUSIP 02368A109   02368A828   02368A364
Trading Symbol AADBX   AABPX   ABLSX
 
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.
 
Investment Advisors
 
Barrow, Hanley, Mewhinney & Strauss, LLC. 35.7%
Brandywine Global Investment Management, LLC 34.4%
Hotchkis and Wiley Capital Management, LLC 18.6%
American Beacon Advisors, Inc 11.3%
 
Expense Ratios
 
  Institutional Class   Investor Class   Advisor Class
           
Gross Expense Ratio 0.57%   0.91%   1.08%
Net Expense Ratio1 0.56%     0.90%     1.07%  
           
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 primarily through investments in U.S. stocks and bonds.

 
Investment Style

The Fund's sub-advisors have the flexibility to vary the proportion of stocks and bonds in the Fund, typically investing between 50% and 70% of its total assets in equity securities and between 30% and 50% of its total assets in debt securities.

For the Fund's stock portion, the 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 bond portion of the Fund is invested in investment grade debt securities, including obligations of the U.S. Government, its agencies and instrumentalities; corporate bonds, notes and debentures; mortgage-backed securities; domestic, Yankeedollar and Eurodollar bank deposit notes; and certificates of deposit.

 
Balanced Fund Total Returns
                           
 
QTR
 
YTD
 
1 YR
 
3 YR*
 
5 YR*
 
10 YR*
 
Since Inception*
                           
Institutional Class 3.26   20.75   20.75   -2.54   2.34   5.47   8.05
Investor Class 3.19   20.25   20.25   -2.82   2.05   5.21   7.84
Advisor Class 3.15   20.12   20.12   -3.02   1.79   5.07   7.78
                           
Linked Balanced Composite Index ** 2.64   14.81   14.81   -2.71   2.16   4.35   8.57
Lipper MATAG Funds Index*** 4.31   26.23   26.23   -1.56   2.73   3.61   N/A
 

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: Mixed-Asset Target Allocation Growth Funds
  1 YR   3 YR   5 YR   10 YR
# of funds in category 649   549   442   245
               
Institutional Class 501   288   166   13
Investor Class 519   322   199   15
Advisor Class 535   339   N/A   N/A
 
Lipper Quartile
 
Institutional Class 4th   3rd   2nd   1st
Investor Class 4th   3rd   2nd   1st
Advisor Class 4th   3rd   N/A   N/A
 
Lipper is an independent rating service that ranks mutual funds in various categories by making comparative calculations using total returns.
 
Equity Sector Weightings
Financials 21.6%
Industrials 15.2%
Information Technology 12.6%
Health Care 11.7%
Energy 11.6%
Consumer Staples 8.6%
Consumer Discretionary 7.6%
Utilities 5.3%
Telecommunication Services 3.0%
Materials 2.8%
 
Bond Sector Weightings
Corporates 48.0%
Mortgage-Backed 22.6%
Agency 15.6%
U.S. Treasury 11.0%
Asset-Backed 1.9%
Other Government Related 0.9%
 
Asset Allocation
   
   
Equity 59.3%
Fixed Income 36.4%
Cash Equivalent 4.3%
 
Portfolio Statistics
     

Equity
 
Fund
Price/Earnings Ratio   12.3
Price/Book Ratio   2.8
Wtd. Avg. Mkt. Cap ($ bil)   $73.5
5 Year Earnings Growth   1.4
     
     
Fixed Income    
Average Credit Quality   Aa2
Weighted Average Maturity   8.9
Weighted Average Duration   5.9
Weighted Average Coupon   5.4
Yield to Maturity   4.3
 
 
3-Year Risk Summary   Fund
R2   0.97
Alpha   0.37
Beta   1.03
Sharpe Ratio   -0.34
Standard Deviation   14.60
 
Top Ten Equity Holdings (%)
PDF View Holdings
 
ConocoPhillips 2.3%
JPMorgan Chase & Co 1.9%
Bank of America Corp. 1.6%
Wells Fargo & Co. 1.6%
International Business Machines Corp. 1.6%
Hewlett-Packard Co. 1.5%
Pfizer, Inc. 1.3%
Ratheon Co. 1.3%
Bristol-Meyers Squibb Co. 1.2%
Philip Morris International, Inc. 1.2%
 
Total Fund Holdings: 475

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.

IMPORTANT INFORMATION:
* Annualized.

**60% Russell 1000® Value Index, 40% Barclays Capital Aggregate Index. To reflect the Balanced Fund’s allocation of its assets between equity securities and investment grade fixed-income securities, American Beacon has combined the returns of the Russell 1000® Value Index and the Barclays Capital Aggregate Index in a 60%/40% proportion. Russell 1000® Value Index is a registered trademark of Frank Russell Company. Russell 1000 Value Index is an unmanaged index of those stocks in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values. The Barclays Capital Aggregate Index is a market value weighted index of government, corporate, mortgage-backed and asset-backed fixed-rate debt securities of all maturities.

*** Lipper Mixed-Asset Target Allocation Growth (MATAG). The Lipper MATAG Funds Index tracks the results of the 30 largest mutual funds in the Lipper MATAG Funds category. Lipper is an independent mutual fund research and ranking service.

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 5/31/05 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 was waived in 2005. Performance prior to waiving fees was lower than the actual returns shown for 2005.

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.

The four highest Moody’s ratings for long-term obligations (or issuers thereof) are Aaa, Aa, A and Baa. Obligations rated Aaa are judged to be of the highest quality, with minimal credit risk. Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. Obligations rated A are considered upper-medium grade and are subject to low credit risk. Obligations rated Baa are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics. Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.

 

Distributed by Foreside Fund Services, LLC.