Low Cost

The American Beacon Funds can help you put more of your money to work for you. Among the thousands of mutual funds available to investors, many charge a sales commission, often called a "load", on the money you invest. This can be as high as 8.5 percent of your investment dollars. For example, if you send $1,000 to a "load fund" that charges 8.5 percent it immediately takes out $85 for itself and only invests $915 for you.

Like any company, mutual funds must pay for the normal cost of doing business. These expenses are paid by the fund from its assets, lowering returns to the investor. The Securities and Exchange Commission has noted that if you invest $10,000 in a fund that produced a 10% annual return before expenses and had annual operating expenses of 1.5%, then after 20 years you would have roughly $49,725. But if the fund had expenses of only 0.5%, then you would end up with $60,858 - an 18% difference.

The American Beacon Funds' large asset base results in cost efficiencies that are passed on to Fund shareholders. We strive to provide you with expense ratios well below the average of other mutual funds with comparable objectives.