American Beacon Small Cap Value Fund

Fund information as of September 30, 2008
Fund Overview
Total Fund Assets: $2.3 Billion
  Institutional Class   PlanAhead Class®   Service Class
           
Inception Date 12/31/98   3/1/99   5/1/03
Class Assets $1.1 Billion   $922.6 Million   $44.6 Million
Fund NAV $16.12   $15.73   $15.61
CUSIP 02368A638   02368A620   02368A430
Trading Symbol AVFIX   AVPAX   AASSX
Investment Minimum $2 Million   $2,500   $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.
Service Class shares are offered to all investors who invest through intermediary organizations, such as broker-dealers or third party administrators.
 
Investment Sub-Advisors
 
Brandywine Global Investment Management, LLC 38.0%
The Boston Company Asset Management, LLC 24.1%
Opus Capital Group, LLC 15.1%
Barrow, Hanley, Mewhinney & Strauss, Inc. 13.2%
Hotchkis and Wiley Capital Management, LLC 9.6%
Dreman Value Management, LLC 0.0%*
Metropolitan West Capital Management, LLC 0.0%*
*Fund assets have not yet been allocated to these sub-advisors.
 
Expense Ratios
 
  Institutional Class   PlanAhead Class   Service Class
           
Gross Expense Ratio 0.81%   1.06%   1.32%
Net Expense Ratio1 0.80%   1.05%    
           
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 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 Funds' assets are invested primarily in stocks with market capitalizations of $3 billion or less at the time of investment. These may consist of common stocks, preferred stocks, securities convertible into common stocks, U.S. dollar-denominated American Depositary Receipts, and U.S. dollar-denominated foreign stocks traded on U.S. exchanges.
 
Small Cap Value Fund Total Returns as of 9/30/2008
                         
 
QTR		  
YTD		  
1 YR		  
3 YR*		  
5 YR*		   Since
Inception*		  
                         
Institutional Class -2.07   -8.46   -15.98   -0.34   8.62   10.44  
PlanAhead Class -2.12   -8.65   -16.18   -0.59   8.35   10.16  
Service Class -2.19   -8.82   -16.44   -0.86   8.05   9.99  
                         
Lipper Index** -2.22   -10.30   -16.35   0.53   8.65   9.15  
Russell 2000® Index *** 4.96   -5.37   -12.25   2.00   9.45   9.43  
 

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 9/30/2008
 
Category: Small Cap Value Funds
  1 YR   3 YR   5 YR    
# of funds in category 304   251   200    
               
Institutional Class 164   142   84    
PlanAhead Class 166   148   95    
Service Class 170   158   108    

Lipper Quartile
 
Institutional Class 3rd   3rd   2nd    
PlanAhead Class 3rd   3rd   2nd    
Service Class 3rd   3rd   3rd    
 
Lipper is an independent rating service that ranks mutual funds in various categories by making comparative calculations using total returns.
 
Sector Weightings
     
     
Financials   26.0
Industrials   18.9
Consumer Discretionary   16.9
Information Technology   13.6
Utilities   6.2
Health Care   5.7
Energy   5.5
Materials   3.6
Consumer Staples   3.1
Telecommunication Services   0.5
 
Asset Allocation
   
Equity 91.4
Equitized Cash 8.6
 
Portfolio Statistics
     

Equity		    
Price/Earnings Ratio   11.5
Price/Book Ratio   1.7
Wtd. Avg. Mkt. Cap ($ bil)   1.5
   
3-Year Risk Summary  
R2   0.89
Alpha   -2.54
Beta   0.91
Sharpe Ratio   -0.34
Standard Deviation   13.36
 
Top Ten Holdings (%)
PDF View All Holdings
 
Regal-Beloit Corp. 0.9%
Hanover Insurance Group, Inc. 0.9%
Korn/Ferry International 0.9%
Atmos Energy Corp. 0.8%
Great Plains Energy, Inc. 0.8%
Valassis Communications, Inc. 0.8%
MAXIMUS, Inc. 0.8%
StanCorp Financial Group, Inc. 0.8%
Men’s Wearhouse, Inc. 0.7%
Tidewater, Inc. 0.7%
 
Total Fund Holdings: 516

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.

* Annualized.
**Lipper Small-Cap Value Funds. 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 Russell 2000® Value and Russell 200 Indexes are registered trademarks of Frank Russell Company.

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.

Performance shown prior to the 3/1/99 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. Performance shown prior to the 5/1/03 inception of the Service Class is that of the Institutional Class from 12/31/98 through 2/28/99 and the PlanAhead Class from 3/1/99 through 4/30/03. The returns have not been adjusted for any difference between the fees and expenses of the Service Class and the historical fees and expenses of the Institutional and PlanAhead Classes. Because the Institutional and PlanAhead Classes both had lower expenses, their performance was better than the Service Class would have realized during the same period. A portion of the fees charged to the Service Class of the Fund was waived through 2004. Performance prior to waiving fees for the Service Class was lower than the actual returns shown for periods through 2004.

Distributed by Foreside Fund Services, LLC.