American Beacon High Yield Bond Fund

Fund information as of March 31, 2008
Fund Overview
Total Fund Assets: $179.0 Million
  Institutional Class   PlanAhead Class®    
           
Inception Date 12/29/00   3/1/02    
Class Assets $89.9 Million   $23.0 Million    
Fund NAV $9.29   $9.30    
CUSIP 02368A489   02368A455    
Trading Symbol AYBFX   AHYPX    
Investment Minimum $2 Million   $2,500    
 
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.
PlanAhead Class shares are offered to individual investors, retirement accounts, plan sponsors, discount brokers or other organizations.
 
Investment Sub-Advisors
 
Post Advisory Group, LLC 50.6%
Franklin Advisers, Inc. 49.4%
 
Expense Ratios
 
  Institutional Class   PlanAhead Class    
           
Gross Expense Ratio 0.87%   1.09%    
Net Expense Ratio1 0.85%   1.08%    
           
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 Fund seeking high current income and capital appreciation through investments in below investment grade-debt obligations.

 
Investment Style

The Fund invests in domestic and foreign high yield bonds. High yield issuers are generally those which have below investment grade ratings because they are relatively small in size, relatively young in years, relatively leveraged financially (perhaps borrowing heavily to finance expansion or due to a leveraged buyout), or formerly “blue chip” companies that have encountered some financial difficulties. These types of securities are commonly referred to as "junk bonds".

The Fund’s weighted average maturity of debt securities is generally expected to be from six to eight years. By emphasizing below investment grade debt securities, the Fund seeks to offer shareholders a regular stream of high income, while providing capital appreciation over time.

In selecting investments, the sub-advisors rely heavily on internal research and credit analysis. The investment advisors will adjust the Fund’s overall credit rating and average maturity based on its judgment of the economic climate, industry dynamics, and values in the high yield market.
 
High Yield Bond Fund Total Returns as of 3/31/2008
                         
 
QTR		  
YTD		  
1YR		  
3YR*		  
5YR*		   Since
Inception*		  
                         
Institutional Class 3.52   -3.52   -3.43   4.15   6.56   7.45  
PlanAhead Class -3.46   -3.46   -3.53   3.92   6.31   7.21  
                         
Lipper Index** -3.50   -3.50   -4.05   4.29   7.99   5.81  
JP Morgan Index *** -2.92   -2.92   -3.06   5.09   8.89   8.09  
 

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 3/31/2008
 
Category: High Current Yield Funds
  1YR   3YR   5YR    
# of funds in category 453   381   332    
               
Institutional Class 171   189   250    
PlanAhead Class 180   226   269    
 
Lipper Quartile
 
Institutional Class 2nd   2nd   4th    
PlanAhead Class 2nd   3rd   4th    
 
Lipper is an independent rating service that ranks mutual funds in various categories by making comparative calculations using total returns.
 
Sector Weightings vs. JP Morgan Index
     
  Fund
 JP Morgan Index
Manufacturing 29.2 30.5
Service 22.0 23.6
Cable/Media 17.0 9.7
Energy 8.0 9.7
Other Corporate 7.8 5.0
Consumer 6.0 4.0
Utilities 4.1 6.4
Finance 3.8 7.1
Telecommunication Services 1.6 2.2
Transportation 0.5 1.8
 
Credit Quality
 
  Fund  
A 0.0  
BBB 2.1  
BB 24.4  
B 61.2  
CCC 11.4  
Not Rated 0.9  
 
Asset Allocation
 
     
Fixed Income 95.7  
Cash 4.3  
 
Portfolio Statistics
     


Fund
JP Morgan Index
Average Credit Quality B+ B+
Weighted Average Life 6.3 6.9
Effective Duration 4.2 4.6
Weighted Average Coupon (%) 8.0 8.3
 
SEC 30-day Yield (%)  
Institutional Class 9.50
PlanAhead Class 8.96
 
Maturity Distribution
     


Fund
0 to 1 Year 4.5  
1 to 3 Years 4.5  
3 to 5 Years 17.7  
5 to 7 Years 38.2
7 to 10 Years 31.7
10+ Years 3.4
 
Top Ten Holdings (%)
PDF View All Holdings
 
Edison Mission Energy 1.2
General Motors Acceptance Corp. 1.2
Ford Motor Credit Co. LLC 1.2
Penske Auto Group, Inc. 1.1
Prestige Brands, Inc. 1.1
Block Communications, Inc. 1.1
NRG Energy, Inc. 1.0
Newark Group, Inc. 1.0
Jarden Corp. 0.9
Leucadia National Corp. 0.9
 
Total Fund Holdings: 200

You should consider the investment objectives, risks, fees and expenses of any mutual fund before investing. This and other information is available in the Fund's prospectus. Please read the prospectus carefully before investing.

* Annualized.
** Lipper High Current Yield Funds. Lipper High Current Yield Funds Index tracks the results of the 30 largest mutual funds in the Lipper High Current Yield Funds category. Lipper is an independent mutual fund research and ranking service.
*** JPMorgan Global High-Yield Index. The JPMorgan Global-High Yield Index is an unmanaged index of fixed income securities of domestic and foreign issuers with a maximum credit rating of BB+ or Ba1. Issues must be publicly registered or issued under Rule 144A under the Securities Act of 1933, with a minimum size of $75 million (par amount). A maximum of two issues per issuer are included in the JPMorgan Global High-Yield Index. Convertible bonds, preferred stock, and floating-rate bonds are excluded from the JPMorgan Global High-Yield Index.

Investing in high yield securities involves additional risks when compared to investing in investment grade securities. These include a greater risk of default or bankruptcy and an increased sensitivity to financial difficulties or changes in interest rates. 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 3/1/02 inception of the PlanAhead Class is that of the Institutional Class. The returns have not been adjusted for any difference between the fees and expenses of the PlanAhead Class and the historical fees and expenses of the Institutional Class. Because the Institutional Class had lower expenses, its performance was better than the PlanAhead Class would have realized during the same period. A portion of the fees charged to the Institutional Class of the Fund was waived. Performance prior to waiving fees was lower than the actual returns shown.

Distributed by Foreside Fund Services, LLC.