American Beacon Intermediate Bond Fund

Fund information as of December 31, 2009
Fund Overview
Total Fund Assets: $219.3 Million
  Institutional Class   Investor Class    
           
Inception Date 9/15/97   3/2/09    
Fund NAV $10.57   $10.55    
CUSIP 02368A570   02368A240    
Trading Symbol AABDX   ABIPX    
 
 
Investment Sub-Advisors
 
Barrow, Hanley, Mehwinney & Strauss, LLC.. 50.4%
American Beacon Advisors, Inc. 49.6%
 
Expense Ratios
 
  Institutional Class   Investor Class    
           
Gross Expense Ratio 0.31%   0.88%    
Net Expense Ratio 0.30%1   0.68%2    
           
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.
2The net expense ratio is net of expense reimbursements that American Beacon Advisors has voluntarily agree to reimburse through February 28, 2010. The voluntary expense reimbursement can be changed at anytime by the manager without notice to the shareholders.

 
Investment Objective

A multi-manager Fund seeking income and capital appreciation through investments in investment grade debt obligations.

 
Investment Style

The Fund seeks to maintain duration of three to seven years. By emphasizing investment grade securities, the Fund seeks to provide shareholders with a regular stream of income, while minimizing principal volatility.

The Fund invests in a diversified range of debt obligations, including securities of the U.S. Government, its agencies and instrumentalities; corporate bonds, notes and debentures; mortgage-backed and asset-backed securities; and other investments. At the time of purchase, all securities are rated in one of the four highest rating categories or, if unrated, deemed to be of comparable quality by the Fund's investment advisors.
 
Intermediate Bond Fund Total Returns
                           
 
QTR		  
YTD		  
1 YR		  
3 YR*		  
5 YR*		  
10 YR*		  
Since Inception*
                           
Institutional Class 0.25   7.33   7.33   6.54   5.31   6.23   5.93
Investor Class 0.03   6.78   6.78   6.36   5.20   6.17   5.89
                           
Lipper Inter. Inv. Grade Debt Funds Index** 1.42   14.30   14.30   4.72   4.18   5.74   5.49
BC Aggregate Index *** 0.20   5.93   5.93   6.04   4.97   6.33   6.12
 

Performance shown is historical and may not be indicative of future returns. Investment returns and principal 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: Intermediate Investment Grade Funds
  1YR   3YR   5YR   10YR
# of funds in category 549   458   395   219
               
Institutional Class 445   91   64   42
Investor Class N/A   N/A   N/A   N/A
 
Lipper Quartile
 
Institutional Class 4th   1st   1st   1st
Investor Class 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
     
Corporate   42.9%
Mortgage-Backed   31.1%
U.S. Treasury   18.2%
Asset-Backed   3.0%
Other Government Related   2.5%
Agency   2.3%
 
Credit Quality
 
Aaa   59.6%
Aa   7.1%
A   19.8%
Baa   13.0%
Less than Baa   0.5%
 
Asset Allocation
 
     
Fixed Income   95.1%
Cash Equivalents   4.9%
 
Portfolio Statistics
   
Average Credit Quality Aa2
Weighted Average Maturity (yrs) 6.1
Weighted Average Duration (yrs) 4.5
Weighted Average Coupon (%) 5.0
 
Maturity Distribution
     
0 to 1 Year   7.8%
1 to 3 Years   22.0%
3 to 5 Years   29.4%
5 to 7 Years   14.4%
7 to 10 Years   16.9%
10+ Years   9.5%
 
Top Five Holdings (%) (excluding Treasuries)
PDF View All Holdings
 

Federal Home Loan Mortgage Corporation, Pool # G08269, 5.500%, Due 5/1/2038

 1.6%
Morgan Stanley (FDIC Guaranteed), 2.250%, Due 3/13/2012 1.0%
Federal National Mortgage Association, Pool # 948590, 6.500%, Due 8/1/2037 1.0%
Federal Home Loan Mortgage Corporation, Pool # A73703, 5.000%, Due 3/1/2038 0.9%
Citibank NA (FDIC Guaranteed), 1.625% Due 3/30/2011 0.9%
 
Total Fund Holdings: 340

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.
** Lipper Intermediate Investment Grade Debt Funds. The Lipper Intermediate Investment Grade Debt Funds Index tracks the results of the 30 largest mutual funds in the Lipper Intermediate Investment Grade Debt Funds category. Lipper is an independent mutual fund research and ranking service.
*** The Barclays Capital Aggregate Index is a market value weighted index for government, corporate, mortgage-backed and asset-backed fixed-rate debt securities of all maturities.

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 3/2/2009 inception of the Investor Class is that of the Institutional Class. 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 Institutional Class. Because the Institutional Class had lower expenses, its performance was better than the Investor Class would have realized during the same period. Performance shown reflects the Fund's receipt in December 2006 and March 2008 of class action settlement proceeds that were related to investment activity in 2002. The Fund's performance that includes these months was higher than it would have been absent receipt of the settlement proceeds.

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.

 

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