American Beacon Short-Term Bond Fund

Fund information as of December 31, 2009
Fund Overview
Total Fund Assets: $158.4 Million
  Institutional Class   Investor Class    
           
Inception Date 12/3/87   8/1/94    
Fund NAV $8.81   $8.82    
CUSIP 02368A562   02368A786    
Trading Symbol AASBX   AALPX    
 
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.
 
Expense Ratios
 
  Institutional Class   Investor Class    
           
Gross Expense Ratio 0.32%    0.89%     
Net Expense Ratio 0.31%1   0.55%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 agreed to reimburse through February 28, 2010. The voluntary expense reimbursement can be changed at any time by the Manager without notice to the shareholder.
 
Investment Objective

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

 
Investment Style

The Fund maintains a relatively short weighted average duration of one to three years. This policy is intended to lessen the Fund's sensitivity to changes in interest rates, By emphasizing investment grade securities, the Fund seeks to provide shareholders with a regular stream of income, while minimizing principal volatility.

American Beacon Advisors, Inc. utilizes a top-down approach, analyzing macroeconomic data to anticipate economic momentum shifts, inflationary trends, the shape of the yield curve, and Federal Reserve policy. American Beacon Advisors, Inc. strives to increase returns by actively managing the duration and quality of the porfolio, consistent with historical relationships among economic growth, inflation and the direction of interest rates.

The Fund typically invests in a diversified mix of debt securities, including obligations of the U.S. Government, its agencies and instrumentalities; corporate bonds, notes and debentures; certificates of deposit; and mortgage-backed securities.

At the time of purchase, all securities are rated in one of the four highest rating categories or, if unrated, deemed to be of compatible quality by American Beacon.

 
Short-Term Bond Fund Total Returns
                           
 
QTR		  
YTD		  
1 YR		  
3 YR*		  
5 YR*		  
10 YR*		  
Since Inception*
                           
Institutional Class 0.82   5.04   5.04   4.45   4.05   4.65   5.70
Investor Class 0.79   4.85   4.85   4.04   3.57   4.16   5.36
                           
Lipper Short Inv. Grade Bond Funds Index** 1.52   10.26   10.26   3.30   3.20   3.92   N/A
BofA ML 1-3 Gov/Corp Index *** 0.37   3.83   3.83   5.13   4.27   4.80   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 market performance has helped to produce short-term returns that are not typical and may not continue in the future.
 
Lipper Rankings
 
Category: Short Investment Grade Bond Funds
  1 YR   3 YR   5 YR   10 YR
# of funds in category 246   223   176   94
               
Institutional Class 196   64   35   19
Investor Class 201   88   73   39
 
Lipper Quartile
 
Institutional Class 4th   2nd   1st   1st
Investor Class 4th   2nd   2nd   2nd
 
Lipper is an independent rating service that ranks mutual funds in various categories by making comparative calculations using total returns.
 
Sector Weightings
Corporates 53.5%
Asset-Backed 18.7%
Other Government Related 13.6%
Agency 12.1%
Mortgage-Backed 2.1%
 
Credit Quality
  Fund
Aaa 51.0%
Aa 10.4%
A 23.7%
Baa 14.9%
 
Asset Allocation
 
Fixed Income   95.4%
Cash Equivalents   4.6%
 
Portfolio Statistics
Average Credit Quality Aa2
Weighted Average Maturity (yrs) 1.9
Weighted Average Duration (yrs) 1.5
Weighted Average Coupon (%) 3.8
 
Maturity Distribution

 
Fund
0 to 1 Year   20.2%
1 to 3 Years   68.5%
3 to 5 Years   11.3%
   
Top Ten Holdings (%)
PDF View All Holdings
 

Bank of America Corp., 2.375%, Due 6/22/2012

 6.5%
Federal National Mortgage Association, 1.375%, Due 4/28/2011 5.1%
General Electric Capital Corp., 2.250%, Due 3/12/2012 3.2%
Federal Home Loan Mortgage Corporation, 2.125%, Due 3/23/2012 3.2%
Federal Home Loan Mortgage Corporation, 1.625%, Due 4/26/2011 3.2%
Citibank NA, 1.625%, Due 3/30/2011 3.2%
USAA Auto Owner Trust, 5.550%, Due 2/15/2013 2.0%
AT&T Wireless Services, Inc., 7.875%, Due 3/1/2011 1.7%
John Deere Capital Corp., 4.125%, Due 1/15/2010 1.5%
Citigroup, Inc., 0.558%, Due 11/5/2014 1.5%
 
Total Fund Holdings: 93

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 Short Investment Grade Bond Funds. The Lipper Short Investment Grade Bond Funds Index tracks the results of the 30 largest mutual funds in the Lipper Short Investment Grade Bond Funds category. Lipper is an independent mutual fund research and ranking service.
*** The Merrill Lynch 1-3 Yr. Gov./Corp. Index is a market value weighted performance benchmark for government and corporate fixed-rate debt securities with maturities between one and three years.

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.

A portion of the fees charged to the Fund has been waived. Performance prior to waiving fees was lower than the actual returns shown. Performance shown reflects the Fund's one-time receipt in December 2006 of class action settlement proceeds that were related to investment activity in 2002. The Fund's performance for all periods that include December 2006 was significantly 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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