American
Beacon |
|
Share
Class | |||||
|
A |
C |
Y |
R6 |
R5 |
Investor |
American
Beacon SiM High Yield Opportunities Fund |
SHOAX |
SHOCX |
SHOYX |
SHOIX |
SHYPX | |
American
Beacon The London Company Income Equity
Fund |
ABCAX |
ABECX |
ABCYX |
ABCRX |
ABCIX |
ABCVX |
American
Beacon SiM High Yield Opportunities FundSM |
Share
Class |
A |
C |
Y |
R5 |
Investor |
Maximum
sales charge imposed on purchases (as a percentage of offering
price) |
%
|
|
|
|
|
Maximum
deferred sales charge (as a percentage of the lower of original offering
price or
redemption proceeds) |
%
1
|
%
|
|
|
|
| |||||
Share
Class |
A |
C |
Y |
R5 |
Investor |
Management
Fees |
%
|
%
|
%
|
%
|
%
|
Distribution
and/or Service (12b-1) Fees |
%
|
%
|
%
|
%
|
%
|
Other
Expenses |
%
|
%
|
%
|
%
|
%
|
Total
Annual Fund Operating Expenses |
%
|
%
|
%
|
%
|
%
|
Fee
Waiver and/or expense reimbursement2
|
(
%)
|
(
%)
|
(
%)
|
(
%)
|
(
%)
|
Total
Annual Fund Operating Expenses after fee waiver and/or expense
reimbursement |
%
|
%
|
%
|
%
|
%
|
1 |
2 | American
Beacon Advisors, Inc. (the “Manager”) has contractually agreed to waive
fees and/or reimburse expenses of the Fund’s A Class, C Class, Y Class, R5
Class, and Investor Class
shares, as applicable, through |
Share
Class |
1
Year |
3
Years |
5
Years |
10
Years |
A |
$ |
$ |
$ |
$ |
C |
$ |
$ |
$ |
$ |
Y |
$ |
$ |
$ |
$ |
R5 |
$ |
$ |
$ |
$ |
Investor |
$ |
$ |
$ |
$ |
Share
Class |
1
Year |
3
Years |
5
Years |
10
Years |
C |
$ |
$ |
$ |
$ |
■ |
Foreign
Currency Forward Contracts Risk.
Foreign currency forward contracts, including non-deliverable forwards
(“NDFs”), are derivative instruments pursuant
to a contract where the parties agree to a fixed price for an agreed
amount of foreign currency at an agreed date or to buy or sell a specific
currency
at a future date at a price set at the time of the contract and include
the risks associated with fluctuations in currency. There are no
limitations on daily
price movements of forward contracts. There can be no assurance that any
strategy used will succeed. Not all forward contracts, including NDFs,
require
a counterparty to post collateral, which may expose the Fund to greater
losses in the event of a default by a counterparty. The use of foreign
currency
forward contracts may expose the Fund to additional risks, such as credit
risk, liquidity risk, and counterparty risk, that it would not be subject
to if it
invested directly in the securities or currencies underlying the foreign
currency forward
contract. |
■ |
Futures
Contracts Risk.
Futures contracts are derivative instruments pursuant to a contract where
the parties agree to a fixed price for an agreed amount of securities
or other underlying assets at an agreed date. The use of such derivative
instruments may expose the Fund to additional risks, such as credit risk,
liquidity
risk, and counterparty risk, that it would not be subject to if it
invested directly in the securities underlying those derivatives. There
can be no assurance
that any strategy used will succeed. There may at times be an imperfect
correlation between the movement in the prices of futures contracts and
the
value of their underlying instruments or indexes. There also can be no
assurance that, at all times, a liquid market will exist for offsetting a
futures contract
that the Fund has previously bought or sold, and this may result in the
inability to close a futures contract when desired. Futures contracts may
experience
potentially dramatic price changes, which will increase the volatility of
the Fund and may involve a small investment of cash (the amount of
initial
and variation margin) relative to the magnitude of the risk assumed (the
potential increase or decrease in the price of the futures contract).
Treasury
futures
contracts expose the Fund to price fluctuations resulting from changes in
interest rates and to potential losses if interest rates do not move as
expected.
Foreign
currency futures contracts expose the Fund to risks associated with
fluctuations in the value of foreign currencies.
Foreign currency futures
contracts are similar to foreign currency forward contracts, except that
they are traded on exchanges (and may have margin requirements) and are
|
standardized
as to contract size and delivery date. The Fund may use foreign currency
futures contracts for the same purposes as foreign currency forward
contracts,
subject to Commodity Futures Trading Commission (“CFTC”)
regulations. |
■ |
Swap
Agreements Risk.
Swap agreements or “swaps” are transactions in which the Fund and a
counterparty agree to pay or receive payments at specified dates
based upon or calculated by reference to changes in specified prices or
rates or the performance of specified securities, indices or other assets
based on
a specified amount (the “notional” amount). Swaps can involve greater
risks than a direct investment in an underlying asset, because swaps
typically include
a certain amount of embedded leverage and as such are subject to leverage
risk. If swaps are used as a hedging strategy, the Fund is subject to the
risk
that the hedging strategy may not eliminate the risk that it is intended
to offset, due to, among other reasons, the occurrence of unexpected price
movements
or the non-occurrence of expected price movements. Swaps also may be
difficult to value. Swaps may be subject to liquidity risk and
counterparty
risk, and swaps that are traded over-the-counter are not subject to
standardized clearing requirements and may involve greater liquidity and
counterparty
risks. The
Fund may invest in the following types of
swaps: |
• |
Credit
default swaps,
which may be subject to credit risk and the risks associated with the
purchase and sale of credit
protection. |
• |
Currency
swaps,
which may be subject to currency risk and credit
risk. |
• |
Equity
swaps,
which may be subject to equity investments
risk. |
• |
Interest
rate swaps,
which may be subject to interest rate risk and credit
risk. |
• |
Total
return swaps,
which may be subject to credit risk and market risk and, if the underlying
securities are bonds or other debt obligations, interest rate risk. |
■ |
Warrants
Risk.
Warrants are derivative securities that give the holder the right to
purchase a specified amount of securities at a specified price. Warrants
may
be more speculative than certain other types of investments because
warrants do not carry with them dividend or voting rights with respect to
the underlying
securities, or any rights in the assets of the issuer. In addition, the
value of a warrant does not necessarily change with the value of the
underlying
securities, and a warrant ceases to have value if it is not exercised
prior to its expiration date. The market for warrants may be very limited
and there
may at times not be a liquid secondary market for
warrants. |
■ |
Recent
Market Events Risk.
Both U.S. and international markets have experienced significant
volatility in recent months and years. As a result of such volatility,
investment returns may fluctuate significantly. Moreover, the risks
discussed herein associated with an investment in the Fund may be
increased. Although interest rates were unusually low in recent years in the U.S. and abroad, in 2022, the Federal Reserve and certain foreign central banks began to raise interest rates as part of their efforts to address rising inflation. It is difficult to accurately predict the pace at which interest rates may continue to increase, the timing, frequency or magnitude of any such increases, or when such increases might stop. Additionally, various economic and political factors could cause the Federal Reserve or another foreign central bank to change their approach in the future and such actions may result in an economic slowdown in the U.S. and abroad. Unexpected increases in interest rates could lead to market volatility or reduce liquidity in certain sectors of the market. Deteriorating economic fundamentals may, in turn, increase the risk of default or insolvency of particular issuers, negatively impact market value, cause credit spreads to widen, and reduce bank balance sheets. Any of these could cause an increase in market volatility, reduce liquidity across various markets or decrease confidence in the markets. Additionally, high public debt in the U.S. and other countries creates ongoing systemic and market risks and policymaking uncertainty. In March 2023, the shutdown of certain financial institutions in the U.S. and questions regarding the viability of other financial institutions raised economic |
concerns
over disruption in the U.S. and global banking systems. There can be no
certainty that the actions taken by the U.S. or foreign governments will
be
effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems. Some countries, including the U.S., have in recent years adopted more protectionist trade policies. Slowing global economic growth; risks associated with a trade agreement between the United Kingdom and the European Union; the risks associated with ongoing trade negotiations with China; and the possibility of changes to some international trade agreements; political or economic dysfunction within some nations, including major producers of oil; and dramatic changes in commodity and currency prices could have adverse effects that cannot be foreseen at the present time. Tensions, war, or open conflict between nations, such as between Russia and Ukraine, in the Middle East or in eastern Asia could affect the economies of many nations, including the United States. The duration of ongoing hostilities in the Middle East and between Russia and Ukraine, and any sanctions and related events cannot be predicted. Those events present material uncertainty and risk with respect to markets globally and the performance of the Fund and its investments or operations could be negatively impacted. Regulators in the U.S. have proposed and recently adopted a number of changes to regulations involving the markets and issuers, some of which apply to the Fund. The full effect of various newly-adopted regulations is not currently known. Additionally, it is not clear whether the proposed regulations will be adopted. However, due to the broad scope of the new and proposed regulations, certain changes could limit the Fund’s ability to pursue its investment strategies or make certain investments, or may make it more costly for the Fund to operate, which may impact performance. Economists and others have expressed increasing concern about the potential effects of global climate change on property and security values. Certain issuers, industries and regions may be adversely affected by the impacts of climate change, including on the demand for and the development of goods and services and related production costs, and the impacts of legislation, regulation and international accords related to climate change, as well as any indirect consequences of regulation or business trends driven by climate change. |
■ |
Government
Money Market Funds Risk.
Investments in government money market funds are subject to interest rate
risk, credit risk, and market
risk. |
■ |
Consumer
Staples Sector Risk.
Investment in the Consumer Staples sector exposes the Fund to adverse
economic, business or other developments affecting the
industries in that sector. The Consumer Staples sector is particularly
sensitive to general economic trends, as well as to changes in consumer
sentiment, demographics
and product trends, product cycles, government regulation and import
controls, labor relations, intense global competition, and social trends
|
and
marketing campaigns. Companies in the Consumer Staples sector can be
significantly affected by general economic trends, as well as by changes
in consumer
sentiment, demographics and product trends, product cycles, government
regulation and import controls, labor relations, intense global
competition,
and social trends and marketing campaigns. Companies in the Consumer
Staples sector can be particularly affected by the cost and availability
of
commodities. |
| |
| |
|
|
Inception
Date of
Class |
1
Year |
5
Years |
10
Years |
Investor
Class |
|
|
|
|
Returns
Before Taxes |
|
-
%
|
%
|
%
|
Returns
After Taxes on Distributions |
|
-
%
|
%
|
%
|
Returns
After Taxes on Distributions and Sales of Fund Shares |
|
-
%
|
%
|
%
|
|
Inception
Date of
Class |
1
Year |
5
Years |
10
Years |
Share
Class
(Before Taxes) |
|
|
|
|
A |
|
-
%
|
%
|
%
|
C |
|
-
%
|
%
|
%*
|
Y |
|
-
%
|
%
|
%
|
R5 |
|
-
%
|
%
|
%
|
* | As noted above, the 10-year performance for C Class shares reflects the conversion of C Class shares to A Class shares after 8 years. If C Class shares were not converted to A Class shares after 8 years, and were instead held for the full 10-year period, performance would have been 3.78%. |
|
1
Year |
5
Years |
10
Years |
Index
(Reflects no deduction for fees, expenses, or taxes) |
|
|
|
ICE
BofA US High Yield Index |
-
%
|
%
|
%
|
Strategic
Income Management, LLC |
Gary
Pokrzywinski
President Lead Portfolio Manager Since Fund Inception (2011) Ryan
C. Larson Portfolio Manager Since 2018 |
Internet |
www.americanbeaconfunds.com | |
Phone |
To
reach an American Beacon representative call 1-800-658-5811, option
1
Through
the Automated Voice Response Service call 1-800-658-5811, option 2
(Investor Class only) | |
Mail |
American
Beacon Funds
P.O.
Box 219643
Kansas
City, MO 64121-9643 |
Overnight
Delivery:
American
Beacon Funds
430
W. 7th Street, Suite 219643
Kansas
City, MO 64105-1407 |
|
New
Account |
Existing
Account | |
Share
Class |
Minimum
Initial Investment Amount |
Purchase/Redemption
Minimum by Check/ACH/Exchange |
Purchase/Redemption
Minimum by Wire |
C |
$1,000 |
$50 |
$250 |
A,
Investor |
$2,500 |
$50 |
$250 |
Y |
$100,000 |
$50 |
None |
R5 |
$250,000 |
$50 |
None |
American
Beacon The London Company Income Equity FundSM |
Share
Class |
A |
C |
Y |
R6 |
R5 |
Investor |
Maximum
sales charge imposed on purchases (as a percentage of offering
price) |
%
|
|
|
|
|
|
Maximum
deferred sales charge (as a percentage of the lower of original
offering
price or redemption proceeds) |
%
1
|
%
|
|
|
|
|
| ||||||
Share
Class |
A |
C |
Y |
R6 |
R5 |
Investor |
Management
Fees |
%
|
%
|
%
|
%
|
%
|
%
|
Distribution
and/or Service (12b-1) Fees |
%
|
%
|
%
|
%
|
%
|
%
|
Other
Expenses |
%
|
%
|
%
|
%
|
%
|
%
|
Acquired
Fund Fees and Expenses |
%
|
%
|
%
|
%
|
%
|
%
|
Total
Annual Fund Operating Expenses2
|
%
|
%
|
%
|
%
|
%
|
%
|
Fee
Waiver and/or expense reimbursement3
|
%
|
%
|
%
|
(
%)
|
%
|
%
|
Total
Annual Fund Operating Expenses after fee waiver and/or expense
reimbursement |
%
|
%
|
%
|
%
|
%
|
%
|
1 |
2 |
3 | American
Beacon Advisors, Inc. (the “Manager”)
has contractually agreed to waive fees and/or reimburse expenses of the
Fund’s R6 Class shares, through |
Share
Class |
1
Year |
3
Years |
5
Years |
10
Years |
A |
$ |
$ |
$ |
$ |
C |
$ |
$ |
$ |
$ |
Y |
$ |
$ |
$ |
$ |
R6 |
$ |
$ |
$ |
$ |
R5 |
$ |
$ |
$ |
$ |
Investor |
$ |
$ |
$ |
$ |
Share
Class |
1
Year |
3
Years |
5
Years |
10
Years |
C |
$ |
$ |
$ |
$ |
■ |
Common
Stock Risk.
The value of a company’s common stock may fall as a result of factors
affecting the company, companies in the same industry or sector,
or the financial markets overall. Common stock generally is subordinate to
preferred stock upon the liquidation or bankruptcy of the issuing
company. |
■ |
Depositary
Receipts and/or U.S. Dollar-Denominated Foreign Stocks Traded on U.S.
Exchanges Risk.
Depositary receipts and U.S. dollar-denominated foreign stocks
traded on U.S. exchanges are subject to certain of the risks associated
with investing directly in foreign securities, including, but not limited
to, currency
exchange rate fluctuations, political and financial instability in the
home country of a particular depositary receipt or foreign stock, less
liquidity, more
volatility, less government regulation and supervision and delays in
transaction
settlement. |
■ |
Real
Estate Investment Trusts (“REITs”) Risk.
Investments in REITs are subject to the risks associated with investing in
the real estate industry, including, among
other risks: adverse developments affecting the real estate industry;
declines in real property values; changes in interest rates; defaults by
mortgagors
or other borrowers and tenants; lack of availability of mortgage funds or
financing; extended vacancies of properties, especially during
economic
downturns; casualty or condemnation losses; regulatory
limitations on rents and operating expenses; and other
governmental actions, such as changes
to tax laws, zoning regulations or environmental regulations. REITs also
are dependent upon the skills of their managers and are subject to heavy
cash
flow dependency or self-liquidation. Regardless of where a REIT is
organized or traded, its performance may be affected significantly by
events in the region
where its properties are located. REITs
may not be diversified geographically or by property or tenant type.
Domestic
REITs could be adversely affected by
failure to qualify for tax-free “pass-through” of distributed net income
and net realized gains under the Internal Revenue Code of 1986, as amended
(“Internal
Revenue Code”), or to maintain their exemption from registration under the
Investment Company Act of 1940, as amended (“Investment Company
Act”).
REITs typically incur fees that are separate from those incurred by the
Fund. Accordingly, the Fund’s investment in REITs will result in the
layering
of expenses such that shareholders will indirectly bear a proportionate
share of the REITs’ operating expenses, in addition to paying Fund
expenses. The
value of REIT common stock may decline when interest rates rise. REITs
tend to be small- to mid-capitalization securities and, as such, are
subject to the risks
of investing in small- to mid-capitalization securities. |
■ |
Recent
Market Events Risk.
Both U.S. and international markets have experienced significant
volatility in recent months and years. As a result of such volatility,
investment returns may fluctuate significantly. Moreover, the risks
discussed herein associated with an investment in the Fund may be
increased. Although interest rates were unusually low in recent years in the U.S. and abroad, in 2022, the Federal Reserve and certain foreign central banks began to raise interest rates as part of their efforts to address rising inflation. It is difficult to accurately predict the pace at which interest rates may continue to |
increase,
the
timing, frequency or magnitude of any such increases,
or when such increases might stop.
Additionally, various economic and political factors could
cause the Federal Reserve or
another foreign central bank to
change their
approach in the future and such
actions may result in an economic slowdown
in the U.S. and abroad.
Unexpected increases in interest rates could lead to market volatility or
reduce liquidity in certain sectors of the market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or
insolvency of particular issuers, negatively impact market value, cause
credit
spreads to widen, and reduce bank balance sheets. Any of these could cause
an increase in market volatility, reduce liquidity across various markets
or
decrease confidence in the markets. Additionally, high public debt in the
U.S. and other countries creates ongoing systemic and market risks and
policymaking
uncertainty. In March 2023, the shutdown of certain financial institutions in the U.S. and questions regarding the viability of other financial institutions raised economic concerns over disruption in the U.S. and global banking systems. There can be no certainty that the actions taken by the U.S. or foreign governments will be effective in mitigating the effects of financial institution failures on the economy and restoring public confidence in the U.S. and global banking systems. Some countries, including the U.S., have in recent years adopted more protectionist trade policies. Slowing global economic growth; risks associated with a trade agreement between the United Kingdom and the European Union; the risks associated with ongoing trade negotiations with China; and the possibility of changes to some international trade agreements; political or economic dysfunction within some nations, including major producers of oil; and dramatic changes in commodity and currency prices could have adverse effects that cannot be foreseen at the present time. Tensions, war, or open conflict between nations, such as between Russia and Ukraine, in the Middle East or in eastern Asia could affect the economies of many nations, including the United States. The duration of ongoing hostilities in the Middle East and between Russia and Ukraine, and any sanctions and related events cannot be predicted. Those events present material uncertainty and risk with respect to markets globally and the performance of the Fund and its investments or operations could be negatively impacted. Regulators in the U.S. have proposed and recently adopted a number of changes to regulations involving the markets and issuers, some of which apply to the Fund. The full effect of various newly-adopted regulations is not currently known. Additionally, it is not clear whether the proposed regulations will be adopted. However, due to the broad scope of the new and proposed regulations, certain changes could limit the Fund’s ability to pursue its investment strategies or make certain investments, or may make it more costly for the Fund to operate, which may impact performance. Economists and others have expressed increasing concern about the potential effects of global climate change on property and security values. Certain issuers, industries and regions may be adversely affected by the impacts of climate change, including on the demand for and the development of goods and services and related production costs, and the impacts of legislation, regulation and international accords related to climate change, as well as any indirect consequences of regulation or business trends driven by climate change. |
■ |
Government
Money Market Funds Risk.
Investments in government money market funds are subject to interest rate
risk, credit risk, and market risk. Interest
rate risk is the risk that rising interest rates could cause the value of
such an investment to decline. Credit risk is the risk that the issuer,
guarantor or
insurer of an obligation, or the counterparty to a transaction, may fail
or become less able or unwilling, to make timely payment of interest or
principal or otherwise
honor its obligations, or that it may default
completely. |
| |
| |
|
|
Inception
Date of
Class |
1
Year |
5
Years |
10
Years |
Investor
Class |
|
|
|
|
Returns
Before Taxes |
|
-
%
|
%
|
%
|
Returns
After Taxes on Distributions |
|
-
%
|
%
|
%
|
Returns
After Taxes on Distributions and Sales of Fund Shares |
|
-
%
|
%
|
%
|
|
Inception
Date of
Class |
1
Year |
5
Years |
10
Years |
Share
Class
(Before Taxes) |
|
|
|
|
A |
|
-
%
|
%
|
%
|
C |
|
-
%
|
%
|
%*
|
Y |
|
-
%
|
%
|
%
|
R6 |
|
-
%
|
%
|
%
|
R5 |
|
-
%
|
%
|
%
|
* | As noted above, the 10-year performance for C Class shares reflects the conversion of C Class shares to A Class shares after 8 years. If C Class shares were not converted to A Class shares after 8 years, and were instead held for the full 10-year period, performance would have been 9.64%. |
|
1
Year |
5
Years |
10
Years |
Index
(Reflects no deduction for fees, expenses, or taxes) |
|
|
|
Russell
1000® Value Index |
-
%
|
%
|
%
|
The
London Company of Virginia, LLC |
Stephen
M. Goddard
Managing Principal, Chief Investment Officer & Co-Lead Portfolio Manager Since Fund Inception (2012) Jonathan
T. Moody
Principal & Portfolio Manager Since Fund Inception (2012) Sam
Hutchings Principal & Co-Lead Portfolio Manager Since 2020 |
J.
Brian Campbell
Principal & Portfolio Manager Since Fund Inception (2012) Mark
E. DeVaul Principal & Portfolio Manager Since Fund Inception (2012) |
Internet |
www.americanbeaconfunds.com | |
Phone |
To
reach an American Beacon representative call 1-800-658-5811, option
1
Through
the Automated Voice Response Service call 1-800-658-5811, option 2
(Investor Class only) | |
Mail |
American
Beacon Funds
P.O.
Box 219643
Kansas
City, MO 64121-9643 |
Overnight
Delivery:
American
Beacon Funds
430
W. 7th Street, Suite 219643
Kansas
City, MO 64105-1407 |
|
New
Account |
Existing
Account | |
Share
Class |
Minimum
Initial Investment Amount |
Purchase/Redemption
Minimum by Check/ACH/Exchange |
Purchase/Redemption
Minimum by Wire |
C |
$1,000 |
$50 |
$250 |
A,
Investor |
$2,500 |
$50 |
$250 |
Y |
$100,000 |
$50 |
None |
R6 |
None |
$50 |
None |
R5 |
$250,000 |
$50 |
None |
■ |
The
American Beacon SiM High Yield Opportunities Fund’s investment objectives
are to seek high current income and, secondarily, capital
appreciation. |
■ |
The
American Beacon The London Company Income Equity Fund’s investment
objective is current income, with a secondary objective of capital
appreciation. |
■ |
The American
Beacon SiM High Yield Opportunities Fund has a non-fundamental policy to
invest under normal circumstances at least 80% of its net assets,
plus
borrowings for investment purposes, in non-investment grade securities
and/or financial instruments that provide exposure to non-investment grade
securities. |
■ |
The American
Beacon The London Company Income Equity Fund has a non-fundamental policy
to invest under normal market conditions at least 80% of its
net assets (plus the amount of any borrowings for investment purposes) in
equity and equity-related investments. |
■ |
develops
overall investment strategies for each Fund, |
■ |
selects
and changes sub-advisors, |
■ |
allocates
assets among sub-advisors, |
■ |
monitors
and evaluates the sub-advisors’ investment performance, |
■ |
monitors
the sub-advisors’ compliance with the
Funds’
investment objectives, policies and restrictions, |
■ |
oversees
the
Funds’
securities lending activities and actions taken by the securities lending
agent to the extent applicable, and |
■ |
directs
the investment of the portion of Fund assets that the sub-advisors
determine should be allocated to short-term
investments. |
■ |
Strategic
Income Management, LLC |
■ |
The
London Company of Virginia, LLC |
■ |
Futures
Contracts.
To gain market exposure on cash balances held in anticipation of liquidity
needs or to reduce market exposure in anticipation of liquidity
needs,
a Fund may purchase and sell non-commodity-based index futures contracts
on a daily basis that relate to securities in which it may invest
directly. An
index futures contract is a contract to purchase or sell the cash value of
an index, at a specified future date at a price agreed upon when the
contract is made.
Upon the expiration of the contract, settlement is made by exchanging cash
in an amount equal to the difference between the contract price and
the
closing price of the index at expiration, net of any initial and variation
margin that was previously paid. As cash balances are invested in
securities, a Fund
may invest simultaneously those balances in index futures contracts until
the cash balances are delivered to settle the securities transactions.
This exposes
a Fund to the market risks associated with the purchased securities and
the index, so the Fund may have more than 100% of its assets exposed to
the
markets. This can magnify gains and losses in a Fund. A Fund also may have
to sell assets at inopportune times to satisfy its settlement or margin
obligations.
The risks associated with the use of index futures contracts also include
that there may be an imperfect correlation between the changes in
market
value of the securities held by a Fund and the prices of futures contracts
or the movement in the prices of futures contracts and the value of their
underlying
indices and that there may not be a liquid secondary market for a futures
contract. |
■ |
Government
Money Market Funds. A
Fund may invest cash balances in government money market funds that are
registered as investment companies under
the Investment Company Act, including a government money market fund
advised by the Manager, with respect to which the Manager also receives
a
management fee. If a Fund invests in government money market funds, the
Fund becomes a shareholder of that investment company. As a result, Fund
shareholders
will bear their proportionate share of the expenses, including, for
example, advisory and administrative fees of the government money market
funds
in which a Fund invests, such as advisory fees charged by the Manager to
any applicable government money market funds advised by the Manager,
in
addition to the fees and expenses Fund shareholders directly bear in
connection with a Fund’s own operations. Shareholders also would be
exposed to the
risks associated with government money market funds and the portfolio
investments of such government money market funds, including the risk that
a government
money market fund’s yield will be lower than the return that a Fund would
have received from other investments that provide liquidity. Investments
in government money market funds are not insured or guaranteed by the
Federal Deposit Insurance Corporation (FDIC) or any other government
agency. |
■ |
Foreign
Currencies |
■ |
Foreign
Currency-Denominated Securities |
■ |
Foreign
Currency Forward Contracts, including Non-Deliverable
Forwards |
■ |
Foreign
Currency Futures Contracts |
■ |
Foreign
Currency Forward Contracts. Foreign
currency forward contracts are two-party contracts pursuant to which one
party agrees to pay the counterparty
a fixed price for an agreed-upon amount of foreign currency at an
agreed-upon future date, which may be any fixed number of days from the
date
of the contract agreed upon by the parties. A foreign currency forward
contract may be a non-deliverable forward contract (NDF), which is a
forward contract
where there is no physical settlement of the two currencies at maturity.
Rather, on the contract settlement date, a net cash settlement will be
made
by one party to the other based on the difference between the contracted
forward rate and the prevailing spot rate, on an agreed notional
amount. |
■ |
Futures
Contracts.
A futures contract is a contract to purchase or sell a particular asset,
or the cash value of an asset, such as a security, commodity, currency
or an index of such assets, at a specified future date, at a price agreed
upon when the contract is made. Under many such contracts, no delivery of
|
the
actual underlying asset is required. Rather, upon the expiration of the
contract, settlement is made by exchanging cash in an amount equal to the
difference
between the contract price and the closing price of the asset (e.g., a
security or an index) at expiration, net of initial and variation margin
that was
previously paid. An
equity index futures contract is based on the value of an underlying
index.
A
Treasury futures contract is a contract for the future delivery
of a U.S. Treasury security.
A
Fund may, from time to time, use futures positions to equitize cash and
expose its portfolio to changes in securities prices
or index prices. This can magnify gains and losses in a Fund.
A
Fund also may have to sell assets at inopportune times to satisfy its
settlement or collateral
obligations. The risks associated with the use of futures contracts also
include that there may be an imperfect correlation between the changes in
market
value of the futures contracts and the assets underlying such contracts,
and that there may not be a liquid secondary market for a futures
contract. |
■ |
Swap
Agreements.
A swap is a transaction in which a Fund and a counterparty agree to pay or
receive payments at specified dates based upon or calculated
by reference to changes in specified prices or rates (e.g., interest rates
in the case of interest rate swaps) or the performance of specified
securities,
indices or other assets based on the nominal or face amount of a reference
asset. Payments are usually made on a net basis so that, on any given
day,
the Fund would receive (or pay) only the amount by which its payment under
the swap is less than (or exceeds) the amount of the other party’s
payment.
The terms of the swap transaction are either negotiated by a sub-advisor
and the swap counterparty or established based on terms generally
available
on an exchange or contract market. Nearly any type of derivative,
including forward contracts, can be structured as a
swap. |
• |
Credit
Default Swaps.
In these transactions, a Fund is generally required to pay the par (or
other agreed-upon) value of a referenced debt security to the counterparty
in the event of a default on or downgrade of the debt security and/or a
similar credit event. In return, a Fund receives from the counterparty
a
periodic stream of payments over the term of the swap. If no default
occurs, a Fund keeps the stream of payments and has no payment
obligations. As the
seller, a Fund would effectively add leverage to its portfolio because, in
addition to its net assets, a Fund would be subject to loss on the par (or
other agreed-upon)
value it had undertaken to pay. A credit default swap may also be entered
by a Fund to attempt to hedge against a decline in the value of
debt
securities due to a credit event, such as an issuer’s failure to make
timely payments of interest or principal, bankruptcy or restructuring. As
the buyer of
protection against a credit event, a Fund pays the counterparty a stream
of payments over the term of the swap, regardless of whether a credit
event occurs. |
• |
Currency
Swaps.
A Fund may enter into currency swaps to hedge foreign currency exchange
risk. A currency swap involves the exchange of payments denominated
in one currency for payments denominated in another. Payments are based on
a notional principal amount, the value of which is fixed, in exchange
rate terms, at the swap’s inception. |
• |
Equity
Swaps.
An equity swap involves the exchange of future cash flows between two
parties, which is similar to an interest rate swap, but is based on
the
return of equity. A Fund may enter into an equity swap in order to
invest in a market without owning or taking physical custody of
securities. In an equity
swap, a Fund and another party exchange the returns on one or more equity
securities. |
• |
Interest
Rate Swaps. A
Fund may enter into an interest rate swap in order to protect against
declines in the value of fixed-income securities held by a Fund.
In an interest rate swap, a Fund and another party exchange the
right to receive interest payments on a security or other reference
rate. |
• |
Total
Return Swaps. A
Fund may enter into total return swaps to obtain exposure to a security or
market without owning or taking physical custody of such
security or market. In a total return swap, one party agrees to pay the
other party an amount equal to the total return on a defined underlying
asset or
a non-asset reference during a specified period of time. The underlying
asset might be a security; basket of securities; or a non-asset reference,
such as a
securities index. In return, the other party would make periodic payments
based on a fixed or variable interest rate or the total return from a
different underlying
asset or non-asset reference. |
■ |
Warrants.
Warrants are options to purchase an issuer’s securities at a stated price
during a stated term. If the market price of the underlying common stock
does
not exceed the warrant’s exercise price during the life of the warrant,
the warrant will expire worthless. Warrants usually have no voting rights,
pay no dividends
and have no rights with respect to the assets of the corporation issuing
them. Warrants normally expire after a stated number of years.
Detachable
warrants are often independently traded on a stock exchange.
Non-detachable warrants cannot be traded independently from their
reference bond.
Corporations often issue warrants to give purchasers of common stock units
the right to purchase additional common stock at a specific price in the
future,
which is usually higher than the market price at the time the warrant is
issued. |
■ |
Common
Stock.
Common stock generally takes the form of shares in a corporation which
represent an equity or ownership interest. Holders of common stock
generally have voting rights in the issuer and are entitled to receive
common stock dividends when, as and if declared by the company’s board of
directors.
Returns on common stock investments consist of any dividends received plus
the amount of appreciation or depreciation in the value of the stock.
Common
stock normally occupies the most subordinated position in an issuer’s
capital structure. It ranks below preferred stock and debt securities in
claims for
dividends and for assets of the company in a liquidation or bankruptcy.
Common stock may be traded via an exchange or over-the-counter.
Over-the-counter
stock may be less liquid than exchange-traded
stock. |
■ |
Depositary
Receipts and/or U.S. Dollar-Denominated Foreign Stocks Traded on U.S.
Exchanges.
ADRs
are U.S. dollar-denominated receipts representing interests
in the securities of a foreign issuer. ADRs typically are issued by
domestic banks and trust companies and represent the deposit with the bank
of the
securities of a foreign issuer. Depositary receipts may not be denominated
in the same currency as the securities into which they may be converted.
Investing
in depositary receipts and U.S. dollar-denominated foreign stocks traded
on U.S. exchanges entails substantially the same risks as direct
investment in
foreign securities. In addition, a Fund may invest in unsponsored
depositary receipts, which are implemented by a depositary bank with no
direct involvement
of the foreign issuers, and the issuers are not obligated to disclose
material information about the underlying securities to investors in the
United
States. Ownership of unsponsored depositary receipts may not entitle a
Fund to the same benefits and rights as ownership of the underlying
securities
or of sponsored depositary receipts, which are implemented in
collaboration with the foreign issuers. |
■ |
Real
Estate Investment Trusts (“REITs”).
Real estate investment trusts (“REITs”), which primarily invest in real
estate or real estate-related loans, may issue equity
or debt securities. Equity REITs own real estate properties, while
mortgage REITs hold construction, development and/or long-term mortgage
loans. Hybrid
REITs own both. The values of REITs may be affected by changes in the
value of the underlying property of the trusts, the creditworthiness of
the issuer,
property taxes, interest rates, tax laws and regulatory requirements, such
as those relating to the environment. Both types of REITs are dependent
upon
management skill and the cash flows generated by their holdings, the real
estate market in general and the possibility of failing to qualify for any
applicable
pass-through tax treatment or failing to maintain any applicable exemptive
status afforded under relevant laws. |
■ |
Corporate
Debt and Other Fixed-Income Securities. Corporate
debt securities are fixed-income securities issued by businesses to
finance their operations. Corporate
debt securities include bonds, notes, debentures and commercial paper
issued by companies to investors with a promise to repay the principal
amount
invested at maturity, with the primary difference being their maturities
and secured or unsecured status. The broad category of corporate debt
securities
includes debt issued by domestic or foreign companies of all kinds,
including companies of all market capitalizations. Corporate debt may be
|
rated
investment grade or below investment grade and may carry fixed or floating
rates of interest. Corporate bonds typically carry a set interest or
coupon rate,
while commercial paper is commonly issued at a discount to par with no
coupon. The perceived ability of the company to meet its principal and
interest
payment obligations is referred to as its creditworthiness, and it may be
supplemented by collateral securing the company’s obligations. Because of
the
wide range of types and maturities of corporate debt securities, as well
as the range of creditworthiness of their issuers, corporate debt
securities have widely
varying potentials for return and risk profiles. For example, commercial
paper issued by a large established domestic corporation that is rated
investment
grade may have a modest return on principal, but carries relatively
limited risk. On the other hand, a long-term corporate note issued by a
small foreign
corporation from a
developing
market country that has not been rated may have the potential for
relatively large returns on principal, but carries a relatively
high degree of risk. Typically, the values of fixed-income securities
change inversely with prevailing interest rates. In addition, in the event
of bankruptcy,
holders of higher-ranking senior securities may receive amounts otherwise
payable to the holders of more junior
securities. |
■ |
Emerging
Markets Debt.
A Fund may invest its assets in debt securities associated with a
particular geographic region or country, including emerging markets.
A Fund may consider a country to be an emerging market country based on a
number of factors including, but not limited to, if the country is
classified
as an emerging or developing economy by any supranational organization
such as the World Bank, International Finance Corporation or the
United
Nations, or related entities, or if the country is considered an emerging
market country for purposes of constructing emerging market indices. The
countries
that comprise emerging markets change from time to time. Emerging markets
may offer higher potential for gains and losses than investments in
the
developed markets of the world. |
■ |
Government-Sponsored
Enterprises and U.S. Government Agencies. A
Fund may invest in debt obligations of U.S. government agencies, such as
the Government
National Mortgage Association (“Ginnie Mae”
or “GNMA”) and
Export-Import Bank of the United States (“ExImBank”),
and government-sponsored
enterprises, such as the Federal National Mortgage Association (“Fannie
Mae”), Federal Home Loan Mortgage Corporation (“Freddie
Mac”), Federal Agricultural Mortgage Corporation (“Farmer Mac”), Federal
Home Loan Bank system (“FHLBs”) and the Federal Farm Credit Banks
Funding
Corporation (“FFCB”). Although chartered or sponsored by Acts of Congress,
debt obligations issued by such
entities, other than Ginnie Mae and ExImBank,
are not backed by the full faith and credit of the U.S. Government. Debt
obligations issued by Fannie Mae, Freddie Mac, Farmer Mac, FHLBs,
and
FFCB
are supported by the issuers’ right to borrow from the U.S. Treasury, the
discretionary authority of the U.S. Treasury to lend to the issuers and
the U.S. Treasury’s
authority to purchase the issuer’s
securities. |
■ |
High-Yield
Bonds.
High yield, non-investment grade bonds (also known as “junk bonds”) are
low-quality, high-risk corporate bonds that generally offer a high
level of current income. High yield bonds are considered speculative by
rating organizations. For example, Moody’s, S&P Global Ratings and
Fitch, Inc. rate
them below Baa3, BBB- and BBB-, respectively. Please see “Appendix C
Ratings Definitions” in the SAI for an explanation of the ratings applied
to high yield
bonds. High yield bonds are often issued as a result of corporate
restructurings, such as leveraged buyouts, mergers, acquisitions, or other
similar events.
They may also be issued by smaller, less creditworthy companies or by
highly leveraged firms, which are generally less able to make scheduled
payments
of interest and principal than more financially stable firms. Because of
their low credit quality, high-yield bonds must pay higher interest to
compensate
investors for the substantial credit risk they assume. Lower-rated
securities are subject to additional risks that may not be present with
investments
in higher-grade securities. Investors should consider carefully their
ability to assume the risks associated with lower-rated securities before
investing
in a Fund. |
■ |
Investment
Grade Securities.
Investment grade securities that a Fund may purchase, either as part of
its principal investment strategy or to implement its temporary
defensive policy, include securities issued or guaranteed by the U.S.
Government, its agencies and instrumentalities, as well as securities
rated in one
of the four highest rating categories by a rating organization rating that
security (such as S&P Global Ratings, Moody’s Investors Service, Inc.,
or Fitch, Inc.)
or comparably rated by a sub-advisor if unrated by a rating
organization. A Fund, at the discretion of a sub-advisor, may retain a
security that has been downgraded
below the initial investment criteria. |
■ |
U.S.
Government Securities.
U.S. Government securities may include U.S. Treasury securities and
securities backed by the full faith and credit of the United States,
and securities issued by other U.S. government agencies and
instrumentalities which have been established or sponsored by the U.S.
government and
that issue obligations which may not be backed by the full faith and
credit of the U.S. government. U.S. Treasury obligations include Treasury
Bills, Treasury
Notes, and Treasury Bonds. Treasury Bills have initial maturities of one
year or less; Treasury Notes have initial maturities of one to ten years;
and Treasury
Bonds generally have initial maturities of greater than ten
years. |
■ |
Government
Money Market Funds. A
Fund can invest free cash balances in registered open-end investment
companies regulated as government money market
funds under the Investment Company Act to provide liquidity or for
defensive purposes. A Fund could invest in government money market funds
rather
than purchasing individual short-term investments. If a Fund invests in
government money market funds, shareholders will bear their proportionate
share
of the expenses, including for example, advisory and administrative fees,
of the government money market funds in which a Fund invests, including
advisory
fees charged by the Manager to any applicable government money market
funds advised by the Manager. Although a government money market
fund
is designed to be a relatively low risk investment, it is not free of
risk. Despite the short maturities and high credit quality of a government
money market
fund’s investments, increases in interest rates and deteriorations in the
credit quality of the instruments the government money market fund has
purchased
may reduce the government money market fund’s yield and can cause the
price of a government money market security to decrease. In addition,
a
government money market fund is subject to the risk that the value of an
investment may be eroded over time by
inflation. |
Risk |
American
Beacon SiM
High Yield Opportunities
Fund |
American
Beacon The
London Company
Income Equity
Fund |
Allocation
Risk |
X |
|
Asset
Selection Risk |
X |
|
Callable
Securities Risk |
X |
|
Convertible
Securities Risk |
X |
|
Counterparty
Risk |
X |
|
“Covenant-Lite”
Obligations Risk |
X |
|
Credit
Risk |
X |
|
Currency
Risk |
X |
|
Cybersecurity
and Operational Risk |
X |
X |
Derivatives
Risk |
X |
|
Foreign
Currency Forward Contracts Risk |
X |
|
Futures
Contracts Risk |
X |
X |
Swap
Agreements Risk |
X |
|
Credit
default swaps |
X |
|
Currency
swaps |
X |
|
Equity
swaps |
X |
|
Interest
rate swaps |
X |
|
Total
return swaps |
X |
|
Warrants
Risk |
X |
|
Dividend
Risk |
X |
X |
Emerging
Markets Risk |
X |
|
Equity
Investments Risk |
X |
X |
Risk |
American
Beacon SiM
High Yield Opportunities
Fund |
American
Beacon The
London Company
Income Equity
Fund |
Common
Stock Risk |
|
X |
Depositary
Receipts and/or U.S. Dollar-Denominated Foreign Stocks Traded on U.S.
Exchanges Risk |
|
X |
Real
Estate Investment Trusts (“REITs”) Risk |
|
X |
Focused
Holdings Risk |
|
X |
Foreign
Exposure Risk |
|
X |
Foreign
Investing Risk |
X |
|
Growth
Companies Risk |
|
X |
Hedging
Risk |
X |
|
High-Yield
Securities Risk |
X |
|
Interest
Rate Risk |
X |
|
Investment
Risk |
X |
X |
Issuer
Risk |
X |
X |
Large-Capitalization
Companies Risk |
|
X |
Leverage
Risk |
X |
|
Liquidity
Risk |
X |
|
Market
Risk |
X |
X |
Recent
Market Events Risk |
X |
X |
Market
Timing Risk |
X |
|
Mid-Capitalization
Companies Risk |
|
X |
Other
Investment Companies Risk |
X |
X |
Government
Money Market Funds Risk |
X |
X |
Preferred
Stock Risk |
X |
X |
Redemption
Risk |
X |
X |
Reliance
on Corporate Management and Financial Reporting Risk |
X |
|
Restricted
Securities Risk |
X |
|
Sector
Risk |
X |
|
Consumer
Staples Sector Risk |
X |
|
Secured,
Partially Secured and Unsecured Obligation Risk |
X |
|
Securities
Lending Risk |
|
X |
Securities
Selection Risk |
X |
X |
Segregated
Assets Risk |
X |
|
U.S.
Government Securities and Government-Sponsored Enterprises
Risk |
X |
|
Unrated
Securities Risk |
X |
|
Valuation
Risk |
X |
|
Value
Stocks Risk |
|
X |
Variable
and Floating Rate Securities Risk |
X |
|
Volatility
Risk |
X |
■ |
Foreign
Currency Forward Contracts Risk.
Foreign currency forward contracts, including NDFs, are derivative
instruments pursuant to a contract where the parties
agree to pay a fixed price for an agreed amount of foreign currency at an
agreed date or to buy or sell a specific currency at a future date at a
price set
at the time of the contract. The use of foreign currency forward contracts
may expose a Fund to additional risks, such as credit risk, liquidity
risk, and counterparty
risk, that it would not be subject to if it invested directly in the
securities or currencies underlying the foreign currency forward contract.
Foreign
currency forward transactions, including NDFs, and forward currency
contracts include risks associated with fluctuations in currency, and
other risks inherent
in trading derivatives. There are no limitations on daily price movements
of forward contracts. Not all forward contracts, including NDFs, require a
counterparty
to post collateral, which may expose a Fund to greater losses in the event
of a default by a counterparty. There may at times be an imperfect
correlation
between the price of a forward contract and the underlying currency, which
may increase the volatility of a Fund. A Fund bears the risk of loss
of
the amount expected to be received under a forward contract in the event
of the default or bankruptcy of a counterparty. If such a default occurs,
a Fund
will have contractual remedies pursuant to the forward contract, but such
remedies may be subject to bankruptcy and insolvency laws which could
affect
a Fund’s rights as a creditor. There can be no assurance that any strategy
used will succeed. |
■ |
Futures
Contracts Risk.
Futures
contracts are derivative instruments pursuant to a contract where the
parties agree to a fixed price for an agreed amount of securities
or other underlying assets at an agreed date. The use of such derivative
instruments may expose a Fund to additional risks, such as credit risk,
liquidity
risk, and counterparty risk, that it would not be subject to if it
invested directly in the instruments underlying those derivatives. There
can be no assurance
that any strategy used will succeed. There
may at times be an imperfect correlation between the movement in the
prices of futures contracts and the
value of their underlying instruments or index. Futures contracts may
experience dramatic price changes (losses) and imperfect correlations
between the price
of the contract and the underlying security, index or currency, which may
increase the volatility of a Fund. Futures contracts may involve a
small investment
of cash (the amount of initial and variation margin) relative to the
magnitude of the risk assumed (the potential increase or decrease in the
price of
the futures contract). There can be no assurance that, at all times, a
liquid market will exist for offsetting a futures contract that
a Fund has previously bought
or sold and this may result in the inability to close a futures contract
when desired. When a Fund purchases or sells a futures contract, it
is subject to daily
variation margin calls that could be substantial. If a Fund has
insufficient cash to meet daily variation margin requirements, it might
need to sell securities
at a time when such sales are disadvantageous. Treasury
futures contracts expose a Fund to price fluctuations resulting from
changes in interest rates
and to potential losses if interest rates do not move as
expected.
Foreign
currency futures contracts expose a Fund to risks associated with
fluctuations in
the value of foreign currencies. |
■ |
Swap
Agreements Risk.
Swap agreements or “swaps” are transactions in which a Fund and a
counterparty agree to pay or receive payments at specified dates
based upon or calculated by reference to changes in specified prices or
rates (e.g., interest rates in the case of interest rate swaps) or the
performance of
specified securities, indices or other assets based on a specified amount
(the “notional” amount). Swaps can involve greater risks than a direct
investment
in an underlying asset, because swaps typically include a certain amount
of embedded leverage and as such are subject to leveraging risk. If
swaps
are used as a hedging strategy, a Fund is subject to the risk that the
hedging strategy may not eliminate the risk that it is intended to offset,
due to, among
other reasons, a lack of correlation between the swaps and the portfolio
of assets that the swaps are designed to hedge or replace. Swaps also may
be
difficult to value. Swaps may be subject to liquidity risk and
counterparty risk. The value of swaps may be affected by changes in
overall market movements
and changes in interest rates and currency exchange rates. Some swaps are
now executed through an organized exchange or regulated facility
and
cleared through a regulated clearing organization. A highly liquid
secondary market may not exist for certain swaps, and there can be no
assurance that
one will develop. The use of an organized exchange or market for swap
transactions may result in certain trading and valuation efficiencies for
swaps, however,
this may not always be the case. The absence of an organized exchange or
market for swaps transactions may result in difficulties in trading and
valuation,
especially in the event of market disruptions. Swaps that are traded
over-the-counter also are not subject to standardized clearing
requirements and
the direct oversight of self-regulatory organizations. Swaps may involve
greater liquidity and counterparty risks, including settlement risk, as
well as collateral
risk (i.e., the risk that the swap will not be properly secured with
sufficient collateral), legal risk (i.e., the risk that a swap will not be
legally enforceable
on all of its terms) and operational risk (i.e., the risk of processing
and human errors, inadequate or failed internal or external processes,
failures in
systems and technology errors or malfunctions). A Fund may invest in the
following types of swaps, which may be subject to the risks discussed
above, as well
as the additional risks as described
below: |
• |
Credit
default swaps,
which may be subject to credit risk and the risks associated with the
purchase and sale of credit
protection. |
• |
Currency
swaps,
which may be subject to foreign exchange, currency, market risk, and
credit risk. |
• |
Equity
swaps,
which may be subject to equity investments risk, as well as market risk
related to the underlying equities. |
• |
Interest
rate swaps,
which may be subject to interest rate risk, market risk and credit
risk. |
• |
Total
return swaps,
which may be subject to credit risk and market risk and, if the underlying
securities are bonds or other debt obligations, interest rate risk. |
■ |
Warrants
Risk.
Warrants are derivative securities that give the holder the right to
purchase a specified amount of securities at a specified price. Warrants
may
be more speculative than certain other types of investments because
warrants do not carry with them dividend or voting rights with respect to
the underlying
securities, or any rights in the assets of the issuer. In addition, the
value of a warrant does not necessarily change with the value of the
underlying
securities, and a warrant ceases to have value if it is not exercised
prior to its expiration date. The price of a warrant may be more volatile
than the
price of its underlying security, and a warrant may offer greater
potential for capital appreciation as well as capital loss. Detached
warrants may be traded
on a stock exchange; however, non-detached warrants can only be exercised
by the investor. The market for warrants may be very limited and there
may
at times not be a liquid secondary market for
warrants. |
■ |
Common
Stock Risk.
The value of a company’s common stock may fall as a result of factors
directly relating to that company, such as decisions made by its
management
or decreased demand for the company’s products or services. A stock’s
value may also decline because of factors affecting not just the
company,
but also companies in the same industry or sector. The price of a
company’s stock may also be affected by changes in financial markets that
are relatively
unrelated to the company, such as changes in interest rates, exchange
rates or industry regulation. Companies that pay dividends on their
common
stock generally only do so after they invest in their own business and
make required payments to bondholders and on other debt and preferred
stock.
Therefore, the value of a company’s common stock will usually be more
volatile than its bonds, other debt and preferred stock. Common stock
generally
is subordinate to preferred stock upon the liquidation or bankruptcy of
the issuing company. In the event of an issuer’s bankruptcy, there is
substantial
risk that there will be nothing left to pay common stockholders after
payments, if any, to bondholders and preferred stockholders have been
made. |
■ |
Depositary
Receipts and/or U.S. Dollar-Denominated Foreign Stocks Traded on
U.
S.
Exchanges Risk. A
Fund may invest in securities issued by foreign companies
through depositary
receipts and
U.S. dollar-denominated foreign stocks traded on U.S. exchanges. These
securities are generally subject to many of
the same risks of investing in the foreign securities that they evidence
or into which they may be converted, including, but not limited to,
currency exchange
rate fluctuations, political and financial instability in the home country
of a particular depositary receipt or foreign stock, less
liquidity,
more volatility,
less government regulation and supervision and delays in transaction
settlement. There may be an imperfect correlation between the market value
of
depositary receipts and the underlying foreign
securities. |
■ |
Real
Estate Investment Trusts (“REITs”) Risk.
REITs or other real estate-related securities are subject to the risks
associated with direct ownership of real estate,
including, among other risks: adverse developments affecting the real
estate industry; declines in real property values; changes in interest
rates; risks related
to general and local economic conditions; defaults by mortgagors or other
borrowers and tenants; lack of availability of mortgage funds or
financing;
increases in property taxes and other operating expenses; overbuilding in
their sector of the real estate market; fluctuations in rental income;
extended
vacancies of properties, especially during economic downturns; casualty or
condemnation losses; changes in tax and regulatory requirements;
losses
due to environmental liabilities; and governmental actions, such as
changes to tax laws, zoning regulations or environmental regulations. All
REITs are dependent
on management skills, are subject to heavy cash flow dependency or
self-liquidation and generally are not diversified. Regardless of where a
REIT
is organized or traded, its performance may be affected significantly by
events in the region where its properties are located. Equity REITs are
affected by
the changes in the value of the properties owned by the trust. Mortgage
REITs are affected by the quality of the credit extended. Equity, mortgage
and hybrid
REITs may not be diversified with regard to the types of tenants, may not
be diversified with regard to the geographic locations of the properties,
and are
subject to cash flow dependency and defaults by borrowers.
Any
domestic REIT could be
adversely affected by failure
to qualify for tax-free “pass-through”
of distributed net income and net realized gains under the Internal
Revenue Code, or to maintain its exemption from registration under the
Investment
Company Act.
REITs typically incur fees that are separate from those incurred by a
Fund. Accordingly, a Fund’s investment in REITs will result in
the
layering of expenses such that shareholders will indirectly bear a
proportionate share of the REITs’ operating expenses, in addition to
indirectly paying Fund
expenses. The value of REIT common stock may decline when interest rates
rise. REITs tend to be small- to mid-capitalization securities and, as
such, are
subject to the risks of investing in small- to mid-capitalization
securities. |
■ |
Recent
Market Events Risk.
Both U.S.
and international markets have experienced significant volatility in
recent months and years. As a result of such volatility,
investment returns may fluctuate significantly. Moreover, the risks
discussed herein associated with an investment in a Fund may be increased.
Deteriorating
economic fundamentals may
increase the risk of default or insolvency of particular issuers,
negatively impact market value, increase market volatility,
cause credit spreads to widen, reduce
bank balance sheets and cause unexpected changes in interest rates. Any of
these could cause an increase in
market volatility, reduce liquidity across various sectors or markets or
decrease confidence in the markets. Historical patterns of correlation
among asset classes
may break down in unanticipated ways during times of high volatility,
disrupting investment programs and potentially causing
losses. Although interest rates were unusually low in recent years in the U.S. and abroad, in 2022, the U.S. Federal Reserve and certain foreign central banks began to raise interest rates as part of their efforts to address rising inflation. In addition, ongoing inflation pressures could continue to cause an increase in interest rates and/or negatively impact issuers. It is difficult to accurately predict the pace at which interest rates may increase, the timing, frequency or magnitude of any such increases in interest rates, or when such increases might stop. Additionally, various economic and political factors, such as rising inflation rates, could cause the Federal Reserve or other foreign banks to change their approach in the future as such actions may result in an economic slowdown both in the U.S. and abroad. Unexpected increases in interest rates could lead to market volatility or reduce liquidity in certain sectors of the market. Also, regulators have expressed concern that rate increases may cause investors to sell fixed income securities faster than the market can absorb them, contributing to price volatility. Over the longer term, rising interest rates may present a greater risk than has historically been the case due to the prior period of relatively low rates and the effect of government fiscal and monetary policy initiatives and potential market reaction to those initiatives, or their alteration or cessation. It is difficult to predict the impact on various markets of significant rate increases or other significant policy changes. In March 2023, the shutdown of certain financial institutions in the U.S. and questions regarding the viability of other financial institutions raised economic concerns over disruption in the U.S. and global banking systems. There can be no certainty that the actions taken by the U.S. or foreign governments will be effective in mitigating the effects of financial institution failures on the economy and restoring public confidence in the U.S. and global banking systems. Some countries, including the U.S., have in recent years adopted more protectionist trade policies. Slowing global economic growth; the rise in protectionist trade policies; changes to international trade agreements; risks associated with the trade agreement between the United Kingdom and the European Union and the risks associated with ongoing trade negotiations with China; political or economic dysfunction within some nations, including major producers of |
oil;
and
dramatic changes in commodity and currency prices could have
adverse effects that cannot be foreseen at the present
time. Tensions, war or open conflict between nations, such as between Russia and Ukraine, in the Middle East or in eastern Asia could affect the economies of many nations, including the United States. The duration of ongoing hostilities and any sanctions and related events cannot be predicted. Those events present material uncertainty and risk with respect to markets globally and the performance of a Fund and its investments or operations could be negatively impacted. Regulators in the U.S. have proposed and recently adopted a number of changes to regulations involving the markets and issuers, some of which apply to a Fund. The full effect of various newly-adopted regulations is not currently known. Additionally, it is not clear whether the proposed regulations will be adopted. However, due to the broad scope of the new and proposed regulations, certain changes could limit a Fund’s ability to pursue its investment strategies or make certain investments, or may make it more costly for a Fund to operate, which may impact performance. Further, advancements in technology may also adversely impact market movements and liquidity and may affect the overall performance of a Fund. For example, the advanced development and increased regulation of artificial intelligence may impact the economy and the performance of a Fund. As artificial intelligence is used more widely, the value of a Fund’s holdings may be impacted, which could impact the overall performance of a Fund. High public debt in the U.S. and other countries creates ongoing systemic and market risks and policymaking uncertainty. There is no assurance that the U.S. Congress will act to raise the nation’s debt ceiling; a failure to do so could cause market turmoil and substantial investment risks that cannot now be fully predicted. Unexpected political, regulatory and diplomatic events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial markets and the broader economy. Certain illnesses spread rapidly and have the potential to significantly and adversely affect the global economy. The impact of epidemics and/or pandemics that may arise in the future could negatively affect the economies of many nations, individual companies and the global securities and commodities markets, including their liquidity, in ways that cannot necessarily be foreseen at the present time and could last for an extended period of time. China’s economy, which has been sustained through debt-financed spending on housing and infrastructure, appears to be experiencing a significant slowdown and growing at a lower rate than prior years. Due to the size of China’s economy, such a slowdown could impact financial markets and the broader economy. Economists and others have expressed increasing concern about the potential effects of global climate change on property and security values. Impacts from climate change may include significant risks to global financial assets and economic growth. A rise in sea levels, an increase in powerful windstorms and/or a climate-driven increase in sea levels or flooding could cause coastal properties to lose value or become unmarketable altogether. Certain issuers, industries and regions may be adversely affected by the impacts of climate change, including on the demand for and the development of goods and services and related production costs, and the impacts of legislation, regulation and international accords related to climate change, as well as any indirect consequences of regulation or business trends driven by climate change. Regulatory changes and divestment movements tied to concerns about climate change could adversely affect the value of certain land and the viability of industries whose activities or products are seen as accelerating climate change. Losses related to climate change could adversely affect, among others, corporate issuers and mortgage lenders, the value of mortgage-backed securities, the bonds of municipalities that depend on tax or other revenues and tourist dollars generated by affected properties, and insurers of the property and/or of corporate, municipal or mortgage-backed securities. |
■ |
Government
Money Market Funds Risk.
Investments in government money market funds are subject to interest rate
risk, credit risk, and market risk. Interest
rate risk is the risk that rising interest rates could cause the Fund’s
investment to lose value. A decline in short-term interest rates or a low
interest rate
environment would lower a government money market fund’s yield and the
return on the Fund’s investment. Credit risk is the risk that the issuer,
guarantor
or insurer of an obligation, or the counterparty to a transaction, may
fail or become less able or unwilling, to make timely payment of interest
or principal
or otherwise honor its obligations, or that it may default completely.
There is the risk that the issuers or guarantors of securities owned by a
government
money market fund, including securities issued by U.S. Government
agencies, which are not backed by the full faith and credit of the U.S.
Government,
will default on the payment of principal or interest or the obligation to
repurchase securities from the government money market fund. This
could
cause the government money market fund’s NAV to decline below $1.00 per
share, which would cause the Fund’s investment to lose
value. |
■ |
Consumer
Staples Sector Risk.
Investment in the Consumer Staples sector exposes the Fund to adverse
economic, business or other developments affecting the
industries in that sector. The Consumer Staples sector is sensitive to
general economic trends, as well as to changes in consumer sentiment,
demographics
and product trends, product cycles, government regulation and import
controls, labor relations, intense global competition, and social trends
and
marketing campaigns. Companies in the Consumer Staples sector also can be
particularly affected by the cost and availability of
commodities. The Consumer
Staples sector as a whole tends to be less susceptible to recessions and
periods of slow growth but is subject to the risk that products or
services that
were once in demand may no longer be considered essential by consumers.
Consumer Staples stocks also can be affected by, among other things,
social
trends (such as food or diet fads), the depletion of resources and the
prices of raw materials, intense competition, and government regulations
that adversely
impact production methods or
profitability. |
■ |
The
ICE BofA US High Yield Index (the “Index”) is a commonly used performance
index for high yield corporate
bonds. It is administered by ICE Data Services.
The Index is a measure of the US
domestic
high yield market. |
■ |
The
Russell 1000®
Value Index is a registered trademark of Frank Russell Company. The
Russell 1000®
Value Index measures the performance of the large cap
value segment of the U.S. equity universe.
|
Fund |
Aggregate
Management and Investment Advisory Fees |
American
Beacon SiM High Yield Opportunities |
0.67% |
American
Beacon The London Company Income Equity |
0.65% |
American
Beacon Fund |
A
Class |
C
Class |
Y
Class |
R6
Class |
R5
Class |
Investor
Class |
American
Beacon SiM High Yield Opportunities Fund |
1.07% |
1.81% |
0.75% |
N/A |
0.74% |
1.10% |
American
Beacon The London Company Income Equity Fund |
N/A |
N/A |
N/A |
0.71% |
N/A |
N/A |
■ |
How
long you expect to own the shares; |
■ |
How
much you intend to invest; |
■ |
Total
expenses associated with owning shares of each
class; |
■ |
Whether
you qualify for any reduction or waiver of sales
charges; |
■ |
Whether
you plan to take any distributions in the near future;
and |
■ |
Availability
of share classes. |
Amount
of Sale/Account Value |
As
a % of Offering Price |
As
a % of Investment |
Dealer
Commission as a % of Offering
Price |
Less
than $50,000 |
5.75% |
6.10% |
5.00% |
$50,000
but less than $100,000 |
4.75% |
4.99% |
4.00% |
$100,000
but less than $250,000 |
3.75% |
3.90% |
3.00% |
$250,000
but less than $500,000 |
2.75% |
2.83% |
2.05% |
$500,000
but less than $1 million |
2.00% |
2.04% |
1.50% |
$1
million and above |
0.00% |
0.00%†
|
‡
|
† | No initial sales charge applies on purchases of $1,000,000 or more. A CDSC of 0.50% of the offering price will be charged on purchases of $1,000,000 or more that are redeemed in whole or in part within eighteen (18) months of purchase. |
‡ | See “Dealer Concessions on A Class Purchases Without a Front-End Sales Charge.” |
Amount
of Sale/Account Value |
As
a % of Offering Price |
As
a % of Investment |
Dealer
Commission as a % of Offering
Price |
Less
than $50,000 |
4.75% |
4.99% |
4.00% |
$50,000
but less than $100,000 |
4.25% |
4.44% |
3.50% |
$100,000
but less than $250,000 |
3.50% |
3.63% |
2.75% |
$250,000
but less than $500,000 |
2.75% |
2.83% |
2.05% |
$500,000
but less than $1 million |
2.00% |
2.04% |
1.50% |
$1
million and above |
0.00% |
0.00%†
|
‡
|
† | No initial sales charge applies on purchases of $1,000,000 or more. A CDSC of 0.50% of the offering price will be charged on purchases of $1,000,000 or more that are redeemed in whole or in part within eighteen (18) months of purchase. |
‡ | See “Dealer Concessions on A Class Purchases Without a Front-End Sales Charge.” |
■ |
The
Manager or its affiliates; |
■ |
Present
and former directors, trustees, officers, employees of the Manager, the
Manager’s parent company, and the American Beacon Funds (and their
‘‘immediate
family’’ as defined in the SAI), and retirement plans established by them
for their employees; |
■ |
Registered
representatives or employees of intermediaries that have selling
agreements with the Funds; |
■ |
Shares
acquired through merger or acquisition; |
■ |
Insurance
company separate accounts; |
■ |
Employer-sponsored
retirement plans; |
■ |
Dividend
reinvestment programs; |
■ |
Purchases
through certain fee-based programs under which investors pay advisory fees
that may be offered through selected registered investment advisers,
broker-dealers,
and other financial intermediaries; |
■ |
Shareholders
that purchase a Fund through a financial intermediary that offers our A
Class shares uniformly on a ‘‘no load’’ (or reduced load) basis to you
and
all similarly situated customers of the intermediary in accordance with
the intermediary’s prescribed fee schedule for purchases of fund
shares; |
■ |
Mutual
fund shares exchanged from an existing position in the same fund as part
of a share class conversion instituted by an intermediary;
and |
■ |
Reinvestment
of proceeds within 90 days of a redemption from A Class account (see
Redemption Policies for more
information). |
■ |
Accounts
owned by you, your spouse or your minor children under the age of 21,
including trust or other fiduciary accounts in which you, your spouse or
your
minor children are the beneficiary; |
■ |
UTMAs/UGMAs; |
■ |
IRAs,
including traditional, Roth, SEP and SIMPLE IRAs;
and |
■ |
Coverdell
Education Savings Accounts or qualified 529
plans. |
■ |
shares
acquired by the reinvestment of dividends or other
distributions; |
■ |
other
shares that are not subject to the CDSC; |
■ |
shares
held the longest during the holding
period. |
■ |
The
redemption is due to a shareholder’s death or post-purchase
disability; |
■ |
The
redemption is from a systematic withdrawal plan and represents no more
than 10% of your annual account value; |
■ |
The
redemption is a benefit payment made from a qualified retirement plan,
unless the redemption is due to the termination of the plan or the
transfer of the
plan to another financial institution; |
■ |
The
redemption is for a “required minimum distribution” from a traditional IRA
as determined by the Internal Revenue
Service; |
■ |
The
redemption is due to involuntary redemptions by a Fund as a result of your
account not meeting the minimum balance requirements, the termination
and
liquidation of a Fund, or other actions; |
■ |
The
redemption is from accounts for which the broker-dealer of record has
entered into a written agreement with the Distributor (or Manager)
allowing this waiver; |
■ |
The
redemption is to return excess contributions made to a retirement plan;
or |
■ |
The
redemption is to return contributions made due to a mistake of
fact. |
|
New
Account |
Existing
Account | |
Share
Class |
Minimum
Initial Investment Amount |
Purchase/Redemption
Minimum by check/ACH/Exchange |
Purchase/Redemption
Minimum by Wire |
C |
$1,000 |
$50 |
$
250 |
A,
Investor |
$2,500 |
$50 |
$
250 |
Y |
$100,000 |
$50 |
None |
R6 |
None |
$50 |
None |
R5 |
$250,000 |
$50 |
None |
Internet |
www.americanbeaconfunds.com | |
Phone |
To
reach an American Beacon representative call 1-800-658-5811, option
1
Through
the Automated Voice Response Service call 1-800-658-5811, option 2
(Investor Class Only) | |
Mail |
American
Beacon Funds
PO
Box 219643
Kansas
City, MO 64121-9643 |
Overnight
Delivery:
American
Beacon Funds
430
W. 7th Street, Suite 219643
Kansas
City, MO 64105-1407 |
■ |
ABA#
0110-0002-8; AC-9905-342-3, |
■ |
Attn:
American Beacon Funds, |
■ |
the
fund name and fund number, and |
■ |
shareholder
account number and registration. |
|
New
Account |
Existing
Account | |
Share
Class |
Minimum
Initial Investment Amount |
Purchase/Redemption
Minimum by Check/ACH/Exchange |
Purchase/Redemption
Minimum by Wire |
C |
$1,000 |
$50 |
$250 |
A,
Investor |
$2,500 |
$50 |
$250 |
Y |
$100,000 |
$50 |
None |
R6 |
None |
$50 |
None |
R5 |
$250,000 |
$50 |
None |
■ |
with
a request to send the proceeds to an address or commercial bank account
other than the address or commercial bank account designated on the
account
application, or |
■ |
for
an account whose address has changed within the last 30 days if proceeds
are sent by check. |
Share
Class |
Account
Balance |
C |
$
1,000 |
A,
Investor |
$
2,500 |
Y |
$25,000 |
R6 |
$0 |
R5 |
$75,000 |
■ |
The
Funds, their officers, trustees, employees, or agents are not responsible
for the authenticity of instructions provided by telephone, nor for any
loss, liability,
cost or expense incurred for acting on
them. |
■ |
The
Funds employ procedures reasonably designed to confirm that instructions
communicated by telephone are
genuine. |
■ |
Due
to the volume of calls or other unusual circumstances, telephone
redemptions may be difficult to implement during certain time
periods. |
■ |
liquidate
a shareholder’s account at the current day’s NAV per share and remit
proceeds via check if the Funds or a financial institution is unable to
verify the shareholder’s
identity within three business days of account
opening, |
■ |
seek
reimbursement from the shareholder for any related loss incurred by a Fund
if payment for the purchase of Fund shares by check does not clear the
shareholder’s
bank, and |
■ |
reject
a purchase order and seek reimbursement from the shareholder for any
related loss incurred by a Fund if funds are not received by the
applicable wire deadline. |
■ |
Send
a letter to American Beacon Funds via the United States Post
Office. |
■ |
Speak
to a Customer Service Representative on the phone after you go through a
security verification process. For
residents of certain states, contact cannot
be made by phone but must be in writing or through the Funds’ secure web
application. |
■ |
Access
your account through the Funds’ secure web
application. |
■ |
Cashing
checks that are received and are made payable to the owner of the
account. |
American
Beacon Funds P.O. Box 219643 Kansas City, MO 64121-9643 1-800-658-5811 www.americanbeaconfunds.com |
■ |
shares
acquired through the reinvestment of dividends and other
distributions; |
■ |
systematic
purchases and redemptions; |
■ |
shares
redeemed to return excess IRA contributions;
or |
■ |
certain
transactions made within a retirement or employee benefit plan, such as
payroll contributions, minimum required distributions, loans, and hardship
withdrawals,
or other transactions that are initiated by a party other than the plan
participant. |
American
Beacon Fund |
Dividends
Paid |
Capital
Gains Distributions and Other
Distributions Paid |
American
Beacon SiM High Yield Opportunities Fund |
Monthly |
Annually |
American
Beacon The London Company Income Equity Fund |
Monthly |
Annually |
■ |
Reinvest
All Distributions. You can elect to reinvest all distributions by a Fund
in additional shares of the distributing class of that
Fund. |
■ |
Reinvest
Only Some Distributions. You can elect to reinvest some types of
distributions by a Fund in additional shares of the distributing class of
that Fund while
receiving the other types of distributions by that Fund by check or having
them sent directly to your bank account by ACH (“in
cash”). |
■ |
Receive
All Distributions in Cash. You can elect to receive all distributions in
cash. |
■ |
Reinvest
Your Distributions in shares of another American Beacon Fund. You can
reinvest all of your distributions by a Fund on a particular class of
shares in shares
of the same class of another American Beacon Fund that is available for
exchanges. You must have an existing account in the same share class of
the selected
fund. |
Type
of Transaction |
Federal
Tax Status |
Dividends
from net investment income* |
Ordinary
income** |
Distributions
of the excess of net short-term capital gain over net long-term capital
loss* |
Ordinary
income |
Distributions
of net gains from certain foreign currency transactions* |
Ordinary
income |
Distributions
of the excess of net long-term capital gain over net short-term capital
loss
(“net capital gain”)* |
Long-term
capital gains |
Type
of Transaction |
Federal
Tax Status |
Redemptions
or exchanges of shares owned for more than one year |
Long-term
capital gains or losses |
Redemptions
or exchanges of shares owned for one year or less |
Net
gains are taxed at the same rate as ordinary income; net losses
are
subject to special rules |
* | Whether reinvested or taken in cash. |
** | Except for dividends that are attributable to ‘‘qualified dividend income,’’ if any. |
American
Beacon SiM High Yield Opportunities FundSM
| |||||
|
A
Class | ||||
For
a share outstanding throughout the period: |
Year
Ended August 31,
2023 |
Year
Ended August 31,
2022 |
Year
Ended August 31,
2021 |
Year
Ended August 31,
2020 |
Year
Ended August 31,
2019 |
Net
asset value, beginning of period |
$8.70
|
$9.84
|
$9.02
|
$9.41
|
$9.53
|
Income
(loss) from investment operations: |
|
|
|
|
|
Net
investment income |
0.58
|
0.43
|
0.62
|
0.55
|
0.47
|
Net
gains (losses) on investments (both realized and unrealized)
|
(0.07
)
|
(1.11
)
|
0.76
|
(0.39
)
|
(0.02
)
|
Total
income (loss) from investment operations |
0.51
|
(0.68
)
|
1.38
|
0.16
|
0.45
|
Less
distributions: |
|
|
|
|
|
Dividends
from net investment income |
(0.51
)
|
(0.44
)
|
(0.56
)
|
(0.55
)
|
(0.57
)
|
Tax
return of capital |
(0.04
)
A
|
(0.02
)
A
|
(0.00
)
A,B
|
-
|
-
|
Total
distributions |
(0.55
)
|
(0.46
)
|
(0.56
)
|
(0.55
)
|
(0.57
)
|
Net
asset value, end of period |
$8.66
|
$8.70
|
$9.84
|
$9.02
|
$9.41
|
Total
returnC
|
6.08
%
|
(7.17
)%
|
15.75
%
|
1.94
%
|
4.85
%
|
Ratios
and supplemental data: |
|
|
|
|
|
Net
assets, end of period |
$36,669,799 |
$30,539,986 |
$35,403,008 |
$23,945,109 |
$23,694,436 |
Ratios
to average net assets: |
|
|
|
|
|
Expenses,
before reimbursements and/or recoupments |
1.13
%
|
1.13
%
|
1.14
%
|
1.15
%
|
1.17
%
|
Expenses,
net of reimbursements and/or recoupments |
1.07
%
|
1.07
%
|
1.09
%
D
|
1.15
%
|
1.17
%
|
Net
investment income, before expense reimbursements
and/or recoupments |
6.28
%
|
4.63
%
|
5.73
%
|
6.01
%
|
5.94
%
|
Net
investment income, net of reimbursements and/or recoupments
|
6.34
%
|
4.69
%
|
5.78
%
|
6.01
%
|
5.94
%
|
Portfolio
turnover rate |
41
%
|
77
%
|
62
%
|
57
%
|
44
%
|
A |
Tax
return of capital is calculated based on outstanding shares at the time of
distribution. |
B |
Amount
represents less than $0.01 per share. |
C |
Based
on net asset value, which does not reflect the sales charge, redemption
fee, or contingent deferred sales charge, if applicable. May include
adjustments in accordance with
U.S. GAAP and as such, the net asset value for reporting purposes and the
returns based upon those net asset values may differ from the net asset
value and returns for shareholder
transactions. |
D |
Expense
ratios may exceed stated expense caps in Note 2 in the Annual Shareholder
Report due to the change in the contractual expense caps on December 31,
2020. |
American
Beacon SiM High Yield Opportunities FundSM
| |||||
|
C
Class | ||||
For
a share outstanding throughout the period: |
Year
Ended August 31,
2023 |
Year
Ended August 31,
2022 |
Year
Ended August 31,
2021 |
Year
Ended August 31,
2020 |
Year
Ended August 31,
2019 |
Net
asset value, beginning of period |
$8.78
|
$9.92
|
$9.09
|
$9.48
|
$9.56
|
Income
(loss) from investment operations: |
|
|
|
|
|
Net
investment income |
0.46
|
0.34
|
0.48
|
0.46
|
0.49
|
Net
gains (losses) on investments (both realized and unrealized)
|
(0.01
)
|
(1.09
)
|
0.85
|
(0.37
)
|
(0.07
)
|
Total
income (loss) from investment operations |
0.45
|
(0.75
)
|
1.33
|
0.09
|
0.42
|
Less
distributions: |
|
|
|
|
|
Dividends
from net investment income |
(0.46
)
|
(0.37
)
|
(0.50
)
|
(0.48
)
|
(0.50
)
|
Tax
return of capital |
(0.03
)
A
|
(0.02
)
A
|
(0.00
)
A,B
|
-
|
-
|
Total
distributions |
(0.49
)
|
(0.39
)
|
(0.50
)
|
(0.48
)
|
(0.50
)
|
Net
asset value, end of period |
$8.74
|
$8.78
|
$9.92
|
$9.09
|
$9.48
|
Total
returnC
|
5.29
%
|
(7.77
)%
|
14.94
%
|
1.22
%
|
4.54
%
|
Ratios
and supplemental data: |
|
|
|
|
|
Net
assets, end of period |
$25,543,731 |
$30,337,985 |
$42,191,091 |
$41,992,083 |
$55,699,475 |
Ratios
to average net assets: |
|
|
|
|
|
Expenses,
before reimbursements and/or recoupments |
1.86
%
|
1.86
%
|
1.87
%
|
1.89
%
|
1.89
%
|
Expenses,
net of reimbursements and/or recoupments |
1.81
%
|
1.81
%
|
1.83
%
D
|
1.89
%
|
1.89
%
|
Net
investment income, before expense reimbursements
and/or recoupments |
5.50
%
|
3.85
%
|
5.08
%
|
5.26
%
|
5.24
%
|
Net
investment income, net of reimbursements and/or recoupments
|
5.55
%
|
3.90
%
|
5.12
%
|
5.26
%
|
5.24
%
|
Portfolio
turnover rate |
41
%
|
77
%
|
62
%
|
57
%
|
44
%
|
A |
Tax
return of capital is calculated based on outstanding shares at the time of
distribution. |
B |
Amount
represents less than $0.01 per share. |
C |
Based
on net asset value, which does not reflect the sales charge, redemption
fee, or contingent deferred sales charge, if applicable. May include
adjustments in accordance with
U.S. GAAP and as such, the net asset value for reporting purposes and the
returns based upon those net asset values may differ from the net asset
value and returns for shareholder
transactions. |
D |
Expense
ratios may exceed stated expense caps in Note 2 in the Annual Shareholder
Report due to the change in the contractual expense caps on December 31,
2020. |
American
Beacon SiM High Yield Opportunities FundSM
| |||||
|
Y
Class | ||||
For
a share outstanding throughout the period: |
Year
Ended August 31,
2023 |
Year
Ended August 31,
2022 |
Year
Ended August 31,
2021 |
Year
Ended August 31,
2020 |
Year
Ended August 31,
2019 |
Net
asset value, beginning of period |
$8.74
|
$9.87
|
$9.05
|
$9.43
|
$9.51
|
Income
(loss) from investment operations: |
|
|
|
|
|
Net
investment income |
0.56
|
0.48
|
0.59
|
0.56
|
0.59
|
Net
gains (losses) on investments (both realized and unrealized)
|
(0.02
)
|
(1.12
)
|
0.82
|
(0.37
)
|
(0.08
)
|
Total
income (loss) from investment operations |
0.54
|
(0.64
)
|
1.41
|
0.19
|
0.51
|
Less
distributions: |
|
|
|
|
|
Dividends
from net investment income |
(0.54
)
|
(0.47
)
|
(0.58
)
|
(0.57
)
|
(0.59
)
|
Tax
return of capital |
(0.04
)
A
|
(0.02
)
A
|
(0.01
)
A
|
-
|
-
|
Total
distributions |
(0.58
)
|
(0.49
)
|
(0.59
)
|
(0.57
)
|
(0.59
)
|
Net
asset value, end of period |
$8.70
|
$8.74
|
$9.87
|
$9.05
|
$9.43
|
Total
returnB
|
6.42
%
|
(6.72
)%
|
16.06
%
|
2.33
%
|
5.58
%
|
Ratios
and supplemental data: |
|
|
|
|
|
Net
assets, end of period |
$772,529,510 |
$986,525,511 |
$833,189,237 |
$740,616,507 |
$661,486,121 |
Ratios
to average net assets: |
|
|
|
|
|
Expenses,
before reimbursements and/or recoupments |
0.89
%
|
0.88
%
|
0.89
%
|
0.90
%
|
0.91
%
|
Expenses,
net of reimbursements and/or recoupments |
0.75
%
|
0.75
%
|
0.80
%
C
|
0.90
%
|
0.91
%
|
Net
investment income, before expense reimbursements
and/or recoupments |
6.45
%
|
4.91
%
|
6.01
%
|
6.29
%
|
6.23
%
|
Net
investment income, net of reimbursements and/or recoupments
|
6.59
%
|
5.04
%
|
6.10
%
|
6.29
%
|
6.23
%
|
Portfolio
turnover rate |
41
%
|
77
%
|
62
%
|
57
%
|
44
%
|
A |
Tax
return of capital is calculated based on outstanding shares at the time of
distribution. |
B |
Based
on net asset value, which does not reflect the sales charge, redemption
fee, or contingent deferred sales charge, if applicable. May include
adjustments in accordance with
U.S. GAAP and as such, the net asset value for reporting purposes and the
returns based upon those net asset values may differ from the net asset
value and returns for shareholder
transactions. |
C |
Expense
ratios may exceed stated expense caps in Note 2 in the Annual Shareholder
Report due to the change in the contractual expense caps on December 31,
2020. |
American
Beacon SiM High Yield Opportunities FundSM
| |||||
|
R5
ClassA
| ||||
For
a share outstanding throughout the period: |
Year
Ended August 31,
2023 |
Year
Ended August 31,
2022 |
Year
Ended August 31,
2021 |
Year
Ended August 31,
2020 |
Year
Ended August 31,
2019 |
Net
asset value, beginning of period |
$8.74
|
$9.88
|
$9.06
|
$9.44
|
$9.52
|
Income
(loss) from investment operations: |
|
|
|
|
|
Net
investment income |
0.58
|
0.46
|
0.59
|
0.57
|
0.59
|
Net
gains (losses) on investments (both realized and unrealized)
|
(0.05
)
|
(1.11
)
|
0.83
|
(0.37
)
|
(0.07
)
|
Total
income (loss) from investment operations |
0.53
|
(0.65
)
|
1.42
|
0.20
|
0.52
|
Less
distributions: |
|
|
|
|
|
Dividends
from net investment income |
(0.53
)
|
(0.47
)
|
(0.59
)
|
(0.58
)
|
(0.60
)
|
Tax
return of capital |
(0.04
)
B
|
(0.02
)
B
|
(0.01
)
B
|
-
|
-
|
Total
distributions |
(0.57
)
|
(0.49
)
|
(0.60
)
|
(0.58
)
|
(0.60
)
|
Net
asset value, end of period |
$8.70
|
$8.74
|
$9.88
|
$9.06
|
$9.44
|
Total
returnC
|
6.42
%
|
(6.82
)%
|
16.08
%
|
2.39
%
|
5.65
%
|
Ratios
and supplemental data: |
|
|
|
|
|
Net
assets, end of period |
$368,453,469 |
$306,537,412 |
$472,951,383 |
$399,310,742 |
$396,916,950 |
Ratios
to average net assets: |
|
|
|
|
|
Expenses,
before reimbursements and/or recoupments |
0.81
%
|
0.81
%
|
0.82
%
|
0.86
%
|
0.83
%
|
Expenses,
net of reimbursements and/or recoupments |
0.74
%
|
0.74
%
|
0.77
%
D
|
0.85
%
|
0.84
%
|
Net
investment income, before expense reimbursements
and/or recoupments |
6.60
%
|
4.89
%
|
6.09
%
|
6.33
%
|
6.31
%
|
Net
investment income, net of reimbursements and/or recoupments
|
6.67
%
|
4.96
%
|
6.14
%
|
6.34
%
|
6.30
%
|
Portfolio
turnover rate |
41
%
|
77
%
|
62
%
|
57
%
|
44
%
|
A |
Prior
to February 28, 2020, the R5 Class was known as Institutional
Class. |
B |
Tax
return of capital is calculated based on outstanding shares at the time of
distribution. |
C |
Based
on net asset value, which does not reflect the sales charge, redemption
fee, or contingent deferred sales charge, if applicable. May include
adjustments in accordance with
U.S. GAAP and as such, the net asset value for reporting purposes and the
returns based upon those net asset values may differ from the net asset
value and returns for shareholder
transactions. |
D |
Expense
ratios may exceed stated expense caps in Note 2 in the Annual Shareholder
Report due to the change in the contractual expense caps on December 31,
2020. |
American
Beacon SiM High Yield Opportunities FundSM
| |||||
|
Investor
Class | ||||
For
a share outstanding throughout the period: |
Year
Ended August 31,
2023 |
Year
Ended August 31,
2022 |
Year
Ended August 31,
2021 |
Year
Ended August 31,
2020 |
Year
Ended August 31,
2019 |
Net
asset value, beginning of period |
$8.70
|
$9.84
|
$9.02
|
$9.41
|
$9.49
|
Income
(loss) from investment operations: |
|
|
|
|
|
Net
investment income |
0.58
|
0.40
|
0.64
|
0.32
|
0.54
|
Net
gains (losses) on investments (both realized and unrealized)
|
(0.06
)
|
(1.09
)
|
0.74
|
(0.17
)
|
(0.05
)
|
Total
income (loss) from investment operations |
0.52
|
(0.69
)
|
1.38
|
0.15
|
0.49
|
Less
distributions: |
|
|
|
|
|
Dividends
from net investment income |
(0.51
)
|
(0.43
)
|
(0.56
)
|
(0.54
)
|
(0.57
)
|
Tax
return of capital |
(0.04
)
A
|
(0.02
)
A
|
(0.00
)
A,B
|
-
|
-
|
Total
distributions |
(0.55
)
|
(0.45
)
|
(0.56
)
|
(0.54
)
|
(0.57
)
|
Net
asset value, end of period |
$8.67
|
$8.70
|
$9.84
|
$9.02
|
$9.41
|
Total
returnC
|
6.17
%
|
(7.20
)%
|
15.73
%
|
1.91
%
|
5.32
%
|
Ratios
and supplemental data: |
|
|
|
|
|
Net
assets, end of period |
$47,196,990 |
$43,181,008 |
$53,412,551 |
$40,259,060 |
$78,700,798 |
Ratios
to average net assets: |
|
|
|
|
|
Expenses,
before reimbursements and/or recoupments |
1.15
%
|
1.16
%
|
1.16
%
|
1.18
%
|
1.15
%
|
Expenses,
net of reimbursements and/or recoupments |
1.10
%
|
1.10
%
|
1.12
%
D
|
1.18
%
|
1.15
%
|
Net
investment income, before expense reimbursements
and/or recoupments |
6.25
%
|
4.56
%
|
5.72
%
|
5.91
%
|
5.98
%
|
Net
investment income, net of reimbursements and/or recoupments
|
6.30
%
|
4.62
%
|
5.76
%
|
5.91
%
|
5.98
%
|
Portfolio
turnover rate |
41
%
|
77
%
|
62
%
|
57
%
|
44
%
|
A |
Tax
return of capital is calculated based on outstanding shares at the time of
distribution. |
B |
Amount
represents less than $0.01 per share. |
C |
Based
on net asset value, which does not reflect the sales charge, redemption
fee, or contingent deferred sales charge, if applicable. May include
adjustments in accordance with
U.S. GAAP and as such, the net asset value for reporting purposes and the
returns based upon those net asset values may differ from the net asset
value and returns for shareholder
transactions. |
D |
Expense
ratios may exceed stated expense caps in Note 2 in the Annual Shareholder
Report due to the change in the contractual expense caps on December 31,
2020. |
American
Beacon The London Company Income Equity FundSM
| |||||
|
A
Class | ||||
For
a share outstanding throughout the period: |
Year
Ended August 31,
2023 |
Year
Ended August 31,
2022 |
Year
Ended August 31,
2021 |
Year
Ended August 31,
2020 |
Year
Ended August 31,
2019 |
Net
asset value, beginning of period |
$21.01
|
$22.90
|
$18.93
|
$18.08
|
$17.96
|
Income
(loss) from investment operations: |
|
|
|
|
|
Net
investment income |
0.36
|
0.29
|
0.28
|
0.30
|
0.31
|
Net
gains (losses) on investments (both realized and unrealized)
|
0.22
|
(1.74
)
|
4.19
|
2.05
|
0.42
|
Total
income (loss) from investment operations |
0.58
|
(1.45
)
|
4.47
|
2.35
|
0.73
|
Less
distributions: |
|
|
|
|
|
Dividends
from net investment income |
(0.36
)
|
(0.30
)
|
(0.29
)
|
(0.33
)
|
(0.34
)
|
Distributions
from net realized gains |
(0.54
)
|
(0.14
)
|
(0.21
)
|
(1.17
)
|
(0.27
)
|
Total
distributions |
(0.90
)
|
(0.44
)
|
(0.50
)
|
(1.50
)
|
(0.61
)
|
Net
asset value, end of period |
$20.69
|
$21.01
|
$22.90
|
$18.93
|
$18.08
|
Total
returnA
|
2.89
%
|
(6.48
)%
|
24.04
%
|
13.44
%
|
4.43
%
|
Ratios
and supplemental data: |
|
|
|
|
|
Net
assets, end of period |
$137,795,991 |
$139,898,234 |
$143,875,366 |
$92,490,860 |
$60,146,845 |
Ratios
to average net assets: |
|
|
|
|
|
Expenses,
before reimbursements and/or recoupments |
1.06
%
|
1.05
%
|
1.05
%
|
1.04
%
|
1.05
%
|
Expenses,
net of reimbursements and/or recoupments |
1.06
%
|
1.05
%
|
1.05
%
|
1.04
%
|
1.05
%
|
Net
investment income, before expense reimbursements
and/or recoupments |
1.75
%
|
1.31
%
|
1.36
%
|
1.71
%
|
1.77
%
|
Net
investment income, net of reimbursements and/or recoupments
|
1.75
%
|
1.31
%
|
1.36
%
|
1.71
%
|
1.77
%
|
Portfolio
turnover rate |
7
%
|
9
%
|
7
%
|
21
%
|
23
%
|
A |
Based
on net asset value, which does not reflect the sales charge, redemption
fee, or contingent deferred sales charge, if applicable. May include
adjustments in accordance with
U.S. GAAP and as such, the net asset value for reporting purposes and the
returns based upon those net asset values may differ from the net asset
value and returns for shareholder
transactions. |
American
Beacon The London Company Income Equity FundSM
| |||||
|
C
Class | ||||
For
a share outstanding throughout the period: |
Year
Ended August 31,
2023 |
Year
Ended August 31,
2022 |
Year
Ended August 31,
2021 |
Year
Ended August 31,
2020 |
Year
Ended August 31,
2019 |
Net
asset value, beginning of period |
$20.83
|
$22.72
|
$18.78
|
$17.94
|
$17.83
|
Income
(loss) from investment operations: |
|
|
|
|
|
Net
investment income |
0.16
|
0.09
|
0.10
|
0.14
|
0.17
|
Net
gains (losses) on investments (both realized and unrealized)
|
0.28
|
(1.70
)
|
4.19
|
2.06
|
0.42
|
Total
income (loss) from investment operations |
0.44
|
(1.61
)
|
4.29
|
2.20
|
0.59
|
Less
distributions: |
|
|
|
|
|
Dividends
from net investment income |
(0.21
)
|
(0.14
)
|
(0.14
)
|
(0.19
)
|
(0.21
)
|
Distributions
from net realized gains |
(0.54
)
|
(0.14
)
|
(0.21
)
|
(1.17
)
|
(0.27
)
|
Total
distributions |
(0.75
)
|
(0.28
)
|
(0.35
)
|
(1.36
)
|
(0.48
)
|
Net
asset value, end of period |
$20.52
|
$20.83
|
$22.72
|
$18.78
|
$17.94
|
Total
returnA
|
2.19
%
|
(7.22
)%
|
23.14
%
|
12.59
%
|
3.64
%
|
Ratios
and supplemental data: |
|
|
|
|
|
Net
assets, end of period |
$46,817,639 |
$60,287,047 |
$85,083,300 |
$95,091,128 |
$126,444,587 |
Ratios
to average net assets: |
|
|
|
|
|
Expenses,
before reimbursements and/or recoupments |
1.80
%
|
1.78
%
|
1.79
%
|
1.81
%
|
1.82
%
|
Expenses,
net of reimbursements and/or recoupments |
1.80
%
|
1.78
%
|
1.79
%
|
1.81
%
|
1.82
%
|
Net
investment income, before expense reimbursements
and/or recoupments |
1.00
%
|
0.56
%
|
0.62
%
|
0.94
%
|
1.01
%
|
Net
investment income, net of reimbursements and/or recoupments
|
1.00
%
|
0.56
%
|
0.62
%
|
0.94
%
|
1.01
%
|
Portfolio
turnover rate |
7
%
|
9
%
|
7
%
|
21
%
|
23
%
|
A |
Based
on net asset value, which does not reflect the sales charge, redemption
fee, or contingent deferred sales charge, if applicable. May include
adjustments in accordance with
U.S. GAAP and as such, the net asset value for reporting purposes and the
returns based upon those net asset values may differ from the net asset
value and returns for shareholder
transactions. |
American
Beacon The London Company Income Equity FundSM
| |||||
|
Y
Class | ||||
For
a share outstanding throughout the period: |
Year
Ended August 31,
2023 |
Year
Ended August 31,
2022 |
Year
Ended August 31,
2021 |
Year
Ended August 31,
2020 |
Year
Ended August 31,
2019 |
Net
asset value, beginning of period |
$21.12
|
$23.03
|
$19.02
|
$18.16
|
$18.04
|
Income
(loss) from investment operations: |
|
|
|
|
|
Net
investment income |
0.41
|
0.35
|
0.33
|
0.34
|
0.36
|
Net
gains (losses) on investments (both realized and unrealized)
|
0.23
|
(1.76
)
|
4.23
|
2.06
|
0.41
|
Total
income (loss) from investment operations |
0.64
|
(1.41
)
|
4.56
|
2.40
|
0.77
|
Less
distributions: |
|
|
|
|
|
Dividends
from net investment income |
(0.41
)
|
(0.36
)
|
(0.34
)
|
(0.37
)
|
(0.38
)
|
Distributions
from net realized gains |
(0.54
)
|
(0.14
)
|
(0.21
)
|
(1.17
)
|
(0.27
)
|
Total
distributions |
(0.95
)
|
(0.50
)
|
(0.55
)
|
(1.54
)
|
(0.65
)
|
Net
asset value, end of period |
$20.81
|
$21.12
|
$23.03
|
$19.02
|
$18.16
|
Total
returnA
|
3.17
%
|
(6.30
)%
|
24.43
%
|
13.70
%
|
4.68
%
|
Ratios
and supplemental data: |
|
|
|
|
|
Net
assets, end of period |
$919,092,509 |
$1,007,455,843 |
$1,045,963,233 |
$783,186,967 |
$666,792,661 |
Ratios
to average net assets: |
|
|
|
|
|
Expenses,
before reimbursements and/or recoupments |
0.81
%
|
0.80
%
|
0.81
%
|
0.81
%
|
0.80
%
|
Expenses,
net of reimbursements and/or recoupments |
0.81
%
|
0.80
%
|
0.81
%
|
0.81
%
|
0.80
%
|
Net
investment income, before expense reimbursements
and/or recoupments |
2.00
%
|
1.56
%
|
1.60
%
|
1.94
%
|
2.03
%
|
Net
investment income, net of reimbursements and/or recoupments
|
2.00
%
|
1.56
%
|
1.60
%
|
1.94
%
|
2.03
%
|
Portfolio
turnover rate |
7
%
|
9
%
|
7
%
|
21
%
|
23
%
|
A |
Based
on net asset value, which does not reflect the sales charge, redemption
fee, or contingent deferred sales charge, if applicable. May include
adjustments in accordance with
U.S. GAAP and as such, the net asset value for reporting purposes and the
returns based upon those net asset values may differ from the net asset
value and returns for shareholder
transactions. |
American
Beacon The London Company Income Equity FundSM
| ||||
|
R6
Class | |||
For
a share outstanding throughout the period: |
Year
Ended August 31,
2023 |
Year
Ended August 31,
2022 |
Year
Ended August 31,
2021 |
August
25, 2020A
to
August 31, 2020 |
Net
asset value, beginning of period |
$21.30
|
$23.22
|
$19.13
|
$18.99
|
Income
from investment operations: |
|
|
|
|
Net
investment income (loss) |
0.24
|
0.39
B
|
2.03
|
(0.01
)
|
Net
gains (losses) on investments (both realized and unrealized)
|
0.43
|
(1.79
)
|
2.59
|
0.15
|
Total
income (loss) from investment operations |
0.67
|
(1.40
)
|
4.62
|
0.14
|
Less
distributions: |
|
|
|
|
Dividends
from net investment income |
(0.43
)
|
(0.38
)
|
(0.32
)
|
-
|
Distributions
from net realized gains |
(0.54
)
|
(0.14
)
|
(0.21
)
|
-
|
Total
distributions |
(0.97
)
|
(0.52
)
|
(0.53
)
|
-
|
Net
asset value, end of period |
$21.00
|
$21.30
|
$23.22
|
$19.13
|
Total
returnC
|
3.28
%
|
(6.21
)%
|
24.62
%
|
0.74
%
D
|
Ratios
and supplemental data: |
|
|
|
|
Net
assets, end of period |
$4,631,676 |
$1,018,965 |
$169,279 |
$100,763 |
Ratios
to average net assets: |
|
|
|
|
Expenses,
before reimbursements and/or recoupments |
0.72
%
|
0.73
%
|
0.75
%
|
0.85
%
E
|
Expenses,
net of reimbursements and/or recoupments |
0.71
%
|
0.71
%
|
0.71
%
|
0.71
%
E
|
Net
investment income (loss), before expense reimbursements and/or
recoupments
|
2.10
%
|
1.75
%
|
1.64
%
|
(3.83
)%
E
|
Net
investment income (loss), net of reimbursements |
2.11
%
|
1.77
%
|
1.68
%
|
(3.69
)%
E
|
Portfolio
turnover rate |
7
%
|
9
%
|
7
%
|
21
%
D
|
A |
Effective
date of class. |
B |
Per
share amounts have been calculated using the average shares
method. |
C |
Based
on net asset value, which does not reflect the sales charge, redemption
fee, or contingent deferred sales charge, if applicable. May include
adjustments in accordance with
U.S. GAAP and as such, the net asset value for reporting purposes and the
returns based upon those net asset values may differ from the net asset
value and returns for shareholder
transactions. |
D |
Not
annualized. |
E |
Annualized. |
American
Beacon The London Company Income Equity FundSM
| |||||
|
R5
ClassA
| ||||
For
a share outstanding throughout the period: |
Year
Ended August 31,
2023 |
Year
Ended August 31,
2022 |
Year
Ended August 31,
2021 |
Year
Ended August 31,
2020 |
Year
Ended August 31,
2019 |
Net
asset value, beginning of period |
$21.25
|
$23.16
|
$19.14
|
$18.26
|
$18.13
|
Income
(loss) from investment operations: |
|
|
|
|
|
Net
investment income |
0.43
|
0.37
|
0.35
|
0.36
|
0.37
|
Net
gains (losses) on investments (both realized and unrealized)
|
0.24
|
(1.77
)
|
4.23
|
2.07
|
0.42
|
Total
income (loss) from investment operations |
0.67
|
(1.40
)
|
4.58
|
2.43
|
0.79
|
Less
distributions: |
|
|
|
|
|
Dividends
from net investment income |
(0.43
)
|
(0.37
)
|
(0.35
)
|
(0.38
)
|
(0.39
)
|
Distributions
from net realized gains |
(0.54
)
|
(0.14
)
|
(0.21
)
|
(1.17
)
|
(0.27
)
|
Total
distributions |
(0.97
)
|
(0.51
)
|
(0.56
)
|
(1.55
)
|
(0.66
)
|
Net
asset value, end of period |
$20.95
|
$21.25
|
$23.16
|
$19.14
|
$18.26
|
Total
returnB
|
3.27
%
|
(6.21
)%
|
24.40
%
|
13.81
%
|
4.78
%
|
Ratios
and supplemental data: |
|
|
|
|
|
Net
assets, end of period |
$565,070,285 |
$512,217,743 |
$415,873,245 |
$307,794,240 |
$236,601,692 |
Ratios
to average net assets: |
|
|
|
|
|
Expenses,
before reimbursements and/or recoupments |
0.75
%
|
0.74
%
|
0.74
%
|
0.75
%
|
0.73
%
|
Expenses,
net of reimbursements and/or recoupments |
0.75
%
|
0.74
%
|
0.74
%
|
0.75
%
|
0.73
%
|
Net
investment income, before expense reimbursements
and/or recoupments |
2.07
%
|
1.63
%
|
1.66
%
|
1.99
%
|
2.09
%
|
Net
investment income, net of reimbursements and/or recoupments
|
2.07
%
|
1.63
%
|
1.66
%
|
1.99
%
|
2.09
%
|
Portfolio
turnover rate |
7
%
|
9
%
|
7
%
|
21
%
|
23
%
|
A |
Prior
to February 28, 2020, the R5 Class was known as Institutional
Class. |
B |
Based
on net asset value, which does not reflect the sales charge, redemption
fee, or contingent deferred sales charge, if applicable. May include
adjustments in accordance with
U.S. GAAP and as such, the net asset value for reporting purposes and the
returns based upon those net asset values may differ from the net asset
value and returns for shareholder
transactions. |
American
Beacon The London Company Income Equity FundSM
| |||||
|
Investor
Class | ||||
For
a share outstanding throughout the period: |
Year
Ended August 31,
2023 |
Year
Ended August 31,
2022 |
Year
Ended August 31,
2021 |
Year
Ended August 31,
2020 |
Year
Ended August 31,
2019 |
Net
asset value, beginning of period |
$21.15
|
$23.06
|
$19.05
|
$18.19
|
$18.06
|
Income
(loss) from investment operations: |
|
|
|
|
|
Net
investment income |
0.35
|
0.29
|
0.28
|
0.30
|
0.31
|
Net
gains (losses) on investments (both realized and unrealized)
|
0.25
|
(1.76
)
|
4.23
|
2.06
|
0.43
|
Total
income (loss) from investment operations |
0.60
|
(1.47
)
|
4.51
|
2.36
|
0.74
|
Less
distributions: |
|
|
|
|
|
Dividends
from net investment income |
(0.36
)
|
(0.30
)
|
(0.29
)
|
(0.33
)
|
(0.34
)
|
Distributions
from net realized gains |
(0.54
)
|
(0.14
)
|
(0.21
)
|
(1.17
)
|
(0.27
)
|
Total
distributions |
(0.90
)
|
(0.44
)
|
(0.50
)
|
(1.50
)
|
(0.61
)
|
Net
asset value, end of period |
$20.85
|
$21.15
|
$23.06
|
$19.05
|
$18.19
|
Total
returnA
|
2.95
%
|
(6.54
)%
|
24.07
%
|
13.38
%
|
4.45
%
|
Ratios
and supplemental data: |
|
|
|
|
|
Net
assets, end of period |
$29,787,339 |
$46,690,436 |
$56,472,628 |
$41,904,048 |
$24,993,208 |
Ratios
to average net assets: |
|
|
|
|
|
Expenses,
before reimbursements and/or recoupments |
1.07
%
|
1.06
%
|
1.07
%
|
1.07
%
|
1.06
%
|
Expenses,
net of reimbursements and/or recoupments |
1.07
%
|
1.06
%
|
1.07
%
|
1.07
%
|
1.06
%
|
Net
investment income, before expense reimbursements
and/or recoupments |
1.72
%
|
1.29
%
|
1.33
%
|
1.67
%
|
1.75
%
|
Net
investment income, net of reimbursements and/or recoupments
|
1.72
%
|
1.29
%
|
1.33
%
|
1.67
%
|
1.75
%
|
Portfolio
turnover rate |
7
%
|
9
%
|
7
%
|
21
%
|
23
%
|
A |
Based
on net asset value, which does not reflect the sales charge, redemption
fee, or contingent deferred sales charge, if applicable. May include
adjustments in accordance with
U.S. GAAP and as such, the net asset value for reporting purposes and the
returns based upon those net asset values may differ from the net asset
value and returns for shareholder
transactions. |
By
Telephone: |
Call 1-800-658-5811 |
By
Mail: |
American
Beacon Funds P.O. Box 219643 Kansas City, MO 64121-9643 |
By
E-mail: |
|
On
the Internet: |
Visit
our website at www.americanbeaconfunds.com Visit the SEC website at www.sec.gov |
American
Beacon is a registered service mark of American Beacon Advisors, Inc. The
American Beacon Funds and
the American Beacon SiM High Yield Opportunities Fund and American Beacon
The London Company Income
Equity Fund are service marks of American Beacon Advisors,
Inc. |
■ |
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored
retirement plans do not include SEP IRAs, Simple IRAs or
SAR-SEPs. |
■ |
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same Fund (but not any
other
fund within the same fund family). |
■ |
Shares
exchanged from Class C shares of the same fund in the month of or
following the 7-year anniversary of the purchase date. To the extent that
this prospectus
elsewhere provides for a waiver with respect to exchanges of Class C
shares or conversion of Class C shares following a shorter holding period,
that
waiver will apply. |
■ |
Employees
and registered representatives of Ameriprise Financial or its affiliates
and their immediate family members. |
■ |
Shares
purchased by or through qualified accounts (including IRAs, Coverdell
Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and
defined
benefit plans) that are held by a covered family member, defined as an
Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal
ascendant
(mother, father, grandmother, grandfather, great grandmother, great
grandfather), advisor’s lineal descendant (son, step-son, daughter,
step-daughter,
grandson, granddaughter, great grandson, great granddaughter) or any
spouse of a covered family member who is a lineal
descendant. |
■ |
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the
redemption,
(2) the redemption and purchase occur in the same account, and (3)
redeemed shares were subject to a front-end or deferred sales load (i.e.
Rights
of Reinstatement). |
■ |
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing share of the same
fund |
■ |
Shares
purchased by employees and registers representatives of Baird or its
affiliate and their family members as designated by
Baird |
■ |
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the
redemption,
(2) the redemption and purchase occur in the same accounts, and (3)
redeemed shares were subject to a front-end or deferred sales charge
(known
as rights of reinstatement) |
■ |
A
shareholder in the Fund’s Investor C shares will have their share
converted at net asset value to Investor A shares of the fund if the
shares are no longer subject
to CDSC and the conversion is in line with the policies and procedures of
Baird |
■ |
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage
account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money purchase pension plans and defined
benefit plans. For purposes of this provision, employer-sponsored
retirement plans do not include SEP IRAs, Simple IRAs or
SAR-SEPs |
■ |
Shares
sold due to death or disability of the
shareholder |
■ |
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
Prospectus |
■ |
Shares
bought due to returns of excess contributions from an IRA
Account |
■ |
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching age 72 as described in the Fund’s
prospectus |
■ |
Shares
sold to pay Baird fees but only if the transaction is initiated by
Baird |
■ |
Shares
acquired through a right of reinstatement |
■ |
Breakpoints
as described in this prospectus |
■ |
Rights
of accumulation which entitles shareholders to breakpoint discounts will
be automatically calculated based on the aggregated holding of fund family
assets
held by accounts within the purchaser’s household at Baird. Eligible fund
family assets not held at Baird may be included in the rights of
accumulations
calculation only if the shareholder notifies his or her financial advisor
about such assets |
■ |
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated
purchases within a fund family through Baird, over a 13-month period of
time |
■ |
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any
other
fund within the fund family). |
■ |
Shares
purchased by employees and registered representatives of Janney or its
affiliates and their family members as designated by
Janney. |
■ |
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within ninety (90) days following the
redemption,
(2) the redemption and purchase occur in the same account, and (3)
redeemed shares were subject to a front-end or deferred sales load (i.e.,
right
of reinstatement). |
■ |
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored
retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh
plans. |
■ |
Shares
acquired through a right of
reinstatement. |
■ |
Class
C shares that are no longer subject to a contingent deferred sales charge
and are converted to Class A shares of the same fund pursuant to Janney’s
policies
and procedures. |
■ |
Shares
sold upon the death or disability of the
shareholder. |
■ |
Shares
sold as part of a systematic withdrawal plan as described in the fund’s
Prospectus. |
■ |
Shares
purchased in connection with a return of excess contributions from an IRA
account. |
■ |
Shares
sold as part of a required minimum distribution for IRA and other
retirement accounts due to the shareholder reaching age 70½ as described
in the fund’s
Prospectus. |
■ |
Shares
sold to pay Janney fees but only if the transaction is initiated by
Janney. |
■ |
Shares
acquired through a right of
reinstatement. |
■ |
Shares
exchanged into the same share class of a different
fund. |
■ |
Breakpoints
as described in the fund’s Prospectus. |
■ |
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint
discounts, will be automatically calculated based on the aggregated
holding of fund
family assets held by accounts within the purchaser’s household at Janney.
Eligible fund family assets not held at Janney may be included in the ROA
calculation
only if the shareholder notifies his or her financial advisor about such
assets. |
■ |
Letters
of intent which allow for breakpoint discounts based on anticipated
purchases within a fund family, over a 13-month time period. Eligible fund
family
assets not held at Janney Montgomery Scott may be included in the
calculation of letters of intent only if the shareholder notifies his or
her financial advisor
about such assets. |
■ |
Shares
of mutual funds available for purchase by employer-sponsored
retirement, deferred compensation,
and employee benefit plans (including health savings
accounts) and trusts used to fund those plans
provided the
shares are not held in a commission-based brokerage account and shares are
held for the
benefit of the plan.
For purposes of this provision, employer-sponsored retirement plans do not
include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans
|
■ |
Shares
purchased through a Merrill investment
advisory program |
■ |
Brokerage
class shares exchanged from advisory class shares
due to the holdings moving from a Merrill investment
advisory program to a Merrill brokerage
account
|
■ |
Shares
purchased
through the Merrill Edge Self-Directed platform
|
■ |
Shares
purchased through the
systematic reinvestment
of capital gains distributions and dividend reinvestment when purchasing
shares of the same mutual
fund
in the same account |
■ |
Shares
exchanged from level-load
shares to front-end load
shares of the same mutual
fund in accordance with the description in the Merrill SLWD Supplement |
■ |
Shares
purchased by eligible employees of Merrill
or its affiliates and their family members
who purchase shares in accounts within the employee’s Merrill Household
(as defined in the Merrill SLWD
Supplement) |
■ |
Shares
purchased by eligible persons associated with the fund as defined in this
prospectus (e.g. the fund’s officers or
trustees) |
■ |
Shares
purchased from the proceeds of a
mutual fund redemption in front-end load shares provided (1) the
repurchase is in a mutual fund
within the same fund
family;
(2)
the repurchase occurs within 90 calendar
days
from
the redemption
trade date,
and
(3)
the redemption and purchase occur in the same account
(known as Rights of Reinstatement). Automated transactions (i.e.
systematic purchases and withdrawals) and purchases made after shares are
automatically
sold to pay Merrill’s
account maintenance fees are not eligible for Rights
of Reinstatement |
■ |
Shares
sold due to the client’s death or disability (as defined by Internal
Revenue Code Section 22I(3)) |
■ |
Shares
sold pursuant
to
a systematic withdrawal program
subject to Merrill’s maximum systematic withdrawal limits
as described in the Merrill
SLWD Supplement |
■ |
Shares
sold due to return
of excess contributions from an IRA account |
■ |
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due
to the investor reaching the qualified age based on applicable
IRS
regulation |
■ |
Front-end
or level-load shares held in commission-based, non-taxable
retirement brokerage accounts
(e.g.
traditional, Roth, rollover, SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans) that are transferred to fee-based
accounts or platforms and
exchanged for a lower cost share class of the same mutual fund
|
■ |
Breakpoint
discounts,
as described in this prospectus,
where the sales load is at or below the maximum sales load that Merrill
permits to be assessed to a front-end
load purchase, as described in the Merrill SLWD
Supplement |
■ |
Rights
of Accumulation (ROA),
as described in the Merrill
SLWD Supplement, which entitle clients to breakpoint discounts
based on the aggregated holdings
of mutual
fund
family assets held in
accounts in their Merrill Household |
■ |
Letters
of Intent (LOI),
which allow for breakpoint discounts on
eligible new purchases based
on anticipated future
eligible purchases
within a fund family
at Merrill,
in accounts within your Merrill Household, as further described in the
Merrill SLWD Supplement |
■ |
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored
retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh
plans |
■ |
Morgan
Stanley employee and employee-related accounts according to Morgan
Stanley’s account linking rules |
■ |
Shares
purchased through reinvestment of dividends and capital gains
distributions when purchasing shares of the same
fund |
■ |
Shares
purchased through a Morgan Stanley self-directed brokerage
account |
■ |
Class
C (i.e., level-load) shares that are no longer subject to a contingent
deferred sales charge and are converted to Class A shares of the same fund
pursuant
to Morgan Stanley Wealth Management’s share class conversion
program |
■ |
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (i) the repurchase occurs within 90 days following the
redemption,
(ii) the redemption and purchase occur in the same account, and (iii)
redeemed shares were subject to a front-end or deferred sales
charge. |
■ |
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including
health savings accounts) and trusts used to fund those plans, provided
that the shares are not held in a commission-based brokerage account and
shares are held for the benefit of the
plan |
■ |
Shares
purchased by or through a 529 Plan |
■ |
Shares
purchased through an OPCO affiliated investment advisory
program |
■ |
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any
other
fund within the fund family) |
■ |
Shares
purchased form the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the
redemption,
(2) the redemption and purchase occur in the same amount, and (3) redeemed
shares were subject to a front-end or deferred sales load (known
as Rights of Restatement). |
■ |
A
shareholder in the Fund’s Class C shares will have their shares converted
at net asset value to Class A shares (or the appropriate share class) of
the Fund if the
shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of OPCO |
■ |
Employees
and registered representatives of OPCO or its affiliates and their family
members |
■ |
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or
any of its affiliates, as described in this
prospectus |
■ |
Death
or disability of the shareholder |
■ |
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
prospectus |
■ |
Return
of excess contributions from an IRA
Account |
■ |
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching age 70½ as described in the
prospectus |
■ |
Shares
sold to pay OPCO fees but only if the transaction is initiated by
OPCO |
■ |
Shares
acquired through a right of reinstatement |
■ |
Breakpoints
as described in this prospectus. |
■ |
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts
will be automatically calculated based on the aggregated holding of fund
family
assets held by accounts within the purchaser’s household at OPCO. Eligible
fund family assets not held at OPCO may be included in the ROA
calculation
only if the shareholder notifies his or her financial advisor about such
assets. |
■ |
Shares
purchased in an investment advisory
program. |
■ |
Shares
purchased within the same fund family through a systematic reinvestment of
capital gains and dividend distributions. |
■ |
Employees
and registered representatives of Raymond James or its affiliates and
their family members as designated by Raymond
James. |
■ |
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the
redemption,
(2) the redemption and purchase occur in the same account, and (3)
redeemed shares were subject to a front-end or deferred sales load
(known
as Rights of Reinstatement). |
■ |
A
shareholder in the Fund’s Class C shares will have their shares converted
at net asset value to Class A shares (or the appropriate share class) of
the Fund if the
shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of Raymond
James. |
■ |
Death
or disability of the shareholder. |
■ |
Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus. |
■ |
Return
of excess contributions from an IRA
Account. |
■ |
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching the qualified age based on
applicable
IRS regulations as described in the fund’s
prospectus. |
■ |
Shares
sold to pay Raymond James fees but only if the transaction is initiated by
Raymond James. |
■ |
Shares
acquired through a right of
reinstatement. |
■ |
Breakpoints
as described in this Prospectus. |
■ |
Rights
of accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family
assets
held by accounts within the purchaser’s household at Raymond James.
Eligible fund family assets not held at Raymond James may be included in
the calculation
of rights of accumulation only if the shareholder notifies his or her
financial advisor about such assets. |
■ |
Letters
of intent which allow for breakpoint discounts based on anticipated
purchases within a fund family, over a 13-month time period. Eligible fund
family
assets not held at Raymond James may be included in the calculation of
letters of intent only if the shareholder notifies his or her financial
advisor about
such assets. |
ADRs |
American
Depositary Receipts | |
Advisers
Act |
Investment
Advisers Act of 1940, as amended | |
American
Beacon or Manager |
American
Beacon Advisors, Inc. | |
Beacon
Funds or the Trust |
American
Beacon Funds | |
Board |
Board
of Trustees | |
Brexit |
The
United Kingdom’s departure from the European Union | |
CAIA |
Chartered
Alternative Investment Analyst | |
Capital
Gains Distributions |
Distributions
of realized net capital gains | |
CDSC |
Contingent
Deferred Sales Charge | |
CFTC |
Commodity
Futures Trading Commission | |
Denial
of Services |
A
cybersecurity incident that results in customers or employees being unable
to access electronic systems | |
Dividends |
Distributions
of most or all of a Fund’s net investment income | |
DRD |
Dividends-received
deduction | |
EU |
European
Union | |
Fannie
Mae |
Federal
National Mortgage Association | |
FFCB |
Federal
Farm Credit Banks | |
FHLB |
Federal
Home Loan Bank | |
Forwards |
Forward
Currency Contracts | |
Freddie
Mac |
Federal
Home Loan Mortgage Corporation | |
GNMA |
Government
National Mortgage Association | |
IDS |
Income
Deposit Securities | |
Internal
Revenue Code |
Internal
Revenue Code of 1986, as amended | |
Investment
Company Act |
Investment
Company Act of 1940, as amended | |
IRA |
Individual
Retirement Account | |
Junk
Bonds |
High
yield, non-investment grade bonds | |
LOI |
Letter
of Intent | |
Management
Agreement |
The
Fund’s Management Agreement with the Manager | |
MLP |
Master
Limited Partnership | |
Moody’s |
Moody’s
Investors Service, Inc. | |
NAV |
Fund’s
net asset value | |
NYSE |
New
York Stock Exchange | |
Other
Distributions |
Distributions
of net gains from foreign currency transactions | |
QDI |
Qualified
Dividend Income | |
REIT |
Real
Estate Investment Trust | |
RIH |
Resolute
Investment Holdings, LLC |
|
SAI |
Statement
of Additional Information | |
SEC |
Securities
and Exchange Commission | |
Securities
Act |
Securities
Act of 1933, as amended | |
State
Street |
State
Street Bank and Trust Company | |
SVP |
Signature
Validation Program | |
UGMA |
Uniform
gifts to minor | |
UTMA |
Uniform
transfers to minor |