As
filed with the Securities and Exchange Commission on
1933
Act File No. 033-11387
1940
Act File No. 811-04984
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 | ☒ | |
Pre-Effective Amendment No. | ☐ | |
Post-Effective Amendment No. 413 | ☒ | |
and/or | ||
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 | ☒ | |
Amendment No. 413 | ☒ | |
(Check appropriate box or boxes.) |
(Exact
Name of Registrant as Specified in Charter)
220
East Las Colinas Boulevard, Suite 1200
Irving,
Texas 75039
(Address
of Principal Executive Offices) (Zip Code)
Registrant’s
Telephone Number, including Area Code: (817) 391-6100
Jeffrey K. Ringdahl, President
220
East Las Colinas Boulevard
Suite
1200
Irving,
Texas 75039
(Name
and Address of Agent for Service)
With
copies to:
Kathy
K. Ingber, Esq.
K&L
Gates LLP
1601
K Street, NW
Washington,
D.C. 20006-1600
It is proposed that this filing will become effective (check appropriate box)
☐ |
immediately upon filing pursuant to paragraph (b) |
☒ |
on
|
☐ |
60 days after filing pursuant to paragraph (a)(1) |
☐ |
on (date) pursuant to paragraph (a)(1) |
☐ |
75 days after filing pursuant to paragraph (a)(2) |
☐ |
on (date) pursuant to paragraph (a)(2) of Rule 485 |
If appropriate, check the following box:
☐ |
This post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
American Beacon
|
|
Share Class
|
|||||
|
A
|
C
|
Y
|
R6
|
R5
|
Investor
|
American Beacon Bridgeway Large Cap Growth Fund
|
BLYAX
|
BLYCX
|
BLYYX
|
BLYRX
|
BRLGX
|
BLYPX
|
American Beacon Bridgeway Large Cap Value Fund
|
BWLAX
|
BWLCX
|
BWLYX
|
BWLRX
|
BRLVX
|
BWLIX
|
Back Cover
|
|
American Beacon
Bridgeway Large Cap Growth 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 A Class, C Class, Y Class, R6 Class, R5 Class and Investor Class shares, as applicable, 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.
|
■
|
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 might increase or start decreasing, the timing, frequency or magnitude of any such changes in interest rates, or when such changes might stop or reverse course. 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 changes in interest rates could lead to significant 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.
|
■
|
Information Technology Sector Risk. The Information Technology sector includes companies engaged in software and services, technology hardware and storage peripherals, electronic equipment and components, and semiconductors and semiconductor equipment. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Information technology companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base or achieve general market acceptance for their products could have a material adverse effect on a company’s business. Companies in the Information Technology sector also may be subject to increased government scrutiny or adverse government or regulatory action. Additionally, companies in the Information Technology sector are heavily dependent on intellectual property and the loss of patent, copyright or trademark protections may adversely affect the profitability of these companies. The market prices of information technology-related securities tend to exhibit a greater degree of market risk and sharp price fluctuations than other types of securities. These securities may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices.
|
|
|
|
|
Inception Date of Class
|
1 Year
|
5 Years
|
10 Years
|
R5 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
|
|
%
|
%
|
%
|
Investor
|
|
%
|
%
|
%
|
|
|
1 Year
|
5 Years
|
10 Years
|
Index (Reflects no deduction for fees, expenses, or taxes)
|
|
|
|
|
Russell 1000® Growth Index
|
|
%
|
%
|
%
|
Bridgeway Capital Management, LLC
|
John Montgomery
President, CEO, Co-Chief Investment Officer, Portfolio Manager Since Fund Inception (2003)* Michael Whipple
Portfolio Manager Since 2005** |
Elena Khoziaeva
Co-Chief Investment Officer, Portfolio Manager Since 2005** |
* | Predecessor Fund inception date. |
** | Includes Predecessor Fund. |
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
|
American Beacon
Bridgeway Large Cap Value 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
|
%
|
%
|
%
|
%
|
%
|
%
|
Total Annual Fund Operating Expenses
|
%
|
%
|
%
|
%
|
%
|
%
|
1 |
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.
|
■
|
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 might increase or start decreasing, the timing, frequency or magnitude of any such changes in interest rates, or when such changes might stop or reverse course. 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 changes in interest rates could lead to significant 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.
|
■
|
Financials Sector Risk. Companies in the Financials sector are subject to extensive governmental regulation and intervention, which may result in financial penalties and limits on the scope of their activities, the amounts and types of loans and other financial commitments they can make, the interest rates and fees they can charge, the scope of their activities, the prices they can charge, the amount of capital they must maintain and, potentially, their size. The impact of recent or future regulation on the Financials sector, including more stringent capital requirements, cannot be predicted. In addition, fiscal, regulatory and monetary policies, economic conditions, interest rate changes, credit rating downgrades, and decreased liquidity in the credit markets may cause an adverse impact in a broad range of markets, including U.S. and international credit and interbank money markets, thereby affecting a wide range of companies in the Financials sector. Cybersecurity incidents and technology malfunctions and failures have become increasingly frequent and have caused significant losses to companies in this sector, which also may negatively impact the Fund.
|
|
|
|
|
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
|
|
%
|
%
|
%
|
* | 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 6.10%. |
|
|
1 Year
|
5 Years
|
10 Years
|
Index (Reflects no deduction for fees, expenses, or taxes)
|
|
|
|
|
Russell 1000® Value Index
|
|
%
|
%
|
%
|
Bridgeway Capital Management, LLC
|
John Montgomery
President, CEO, Co-Chief Investment Officer, Portfolio Manager Since Fund Inception (2003)* Michael Whipple
Portfolio Manager Since 2005** |
Elena Khoziaeva
Co-Chief Investment Officer, Portfolio Manager Since 2005** |
* | Predecessor Fund inception date. |
** | Includes Predecessor Fund. |
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 Bridgeway Large Cap Growth Fund’s investment objective is long-term total return on capital, primarily through capital appreciation.
|
■
|
The American Beacon Bridgeway Large Cap Value Fund’s investment objective is long-term total return on capital, primarily through capital appreciation and some income.
|
■
|
The American Beacon Bridgeway Large Cap Growth Fund has a non-fundamental policy to invest under normal market conditions at least 80% of its net assets (plus borrowings for investment purposes) in stocks from among those in the large-cap growth category at the time of purchase.
|
■
|
The American Beacon Bridgeway Large Cap Value Fund has a non-fundamental policy to invest under normal market conditions at least 80% of Fund net assets (plus borrowings for investment purposes), in stocks from among those in the large-cap value category at the time of purchase.
|
■
|
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.
|
■
|
Bridgeway Capital Management, LLC
|
■
|
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.
|
■
|
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.
|
■
|
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.
|
■
|
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 Bridgeway Large Cap Growth Fund
|
American Beacon Bridgeway Large Cap Value Fund
|
Cybersecurity and Operational Risk
|
X
|
X
|
Environmental, Social, and/or Governance Investing Risk
|
X
|
X
|
Equity Investments Risk
|
X
|
X
|
|
X
|
X
|
Futures Contracts Risk
|
X
|
X
|
Growth Companies Risk
|
X
|
|
Investment Risk
|
X
|
X
|
Issuer Risk
|
X
|
X
|
Large-Capitalization Companies Risk
|
X
|
X
|
Risk
|
American Beacon Bridgeway Large Cap Growth Fund
|
American Beacon Bridgeway Large Cap Value Fund
|
Market Risk
|
X
|
X
|
|
X
|
X
|
Mid-Capitalization Companies Risk
|
X
|
X
|
Model and Data/Programming Error Risk
|
X
|
X
|
Other Investment Companies Risk
|
X
|
X
|
|
X
|
X
|
Quantitative Strategy Risk
|
X
|
X
|
Redemption Risk
|
X
|
X
|
Sector Risk
|
X
|
X
|
|
|
X
|
|
X
|
|
Securities Lending Risk
|
X
|
X
|
Securities Selection Risk
|
X
|
X
|
Tax Management Risk
|
X
|
X
|
Value Stocks Risk
|
X
|
X
|
■
|
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.
|
■
|
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 might increase or start decreasing, the timing, frequency or magnitude of any such changes in interest rates, or when such changes might stop or reverse course. 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 changes in interest rates could lead to significant 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.
|
■
|
Financials Sector Risk. Companies in the Financials sector are subject to extensive governmental regulation and intervention, which may result in financial penalties and limits on the amounts and types of loans and other financial commitments they can make, the interest rates and fees they can charge, the scope of their activities, the prices they can charge and the amount of capital they must maintain, and, potentially, their size. Governmental regulation may change frequently and may have significant adverse consequences for companies in the Financials sector, including effects not intended by such regulation. The impact of recent or future regulation, including more stringent capital requirements, cannot be predicted. Profitability is largely dependent on the availability and cost of capital funds and can fluctuate significantly. In addition, fiscal, regulatory and monetary policies, economic conditions, interest rate changes, loan losses, credit rating downgrades, and decreased liquidity in the credit markets may cause an adverse impact in a broad range of markets, including U.S. and international credit and interbank money markets, thereby affecting a wide range of financial institutions and markets..
Securities of financial services companies may experience a dramatic decline in value when such companies experience substantial declines in the valuations of their assets, take action to raise capital (such as the issuance of debt or equity securities), or cease operations. Companies in the Financials sector are exposed directly to the credit risk of their borrowers and counterparties, who may be leveraged to an unknown degree, including through swaps and other derivatives products. In addition, financial services companies may have concentrated portfolios, such as a high level of loans to one or more industries or sectors, which makes them vulnerable to economic conditions that affect such industries or sectors. Credit losses resulting from financial difficulties of borrowers and financial losses associated with investment activities can negatively impact the sector. Cybersecurity incidents and technology malfunctions and failures have become increasingly frequent in this sector and have reportedly caused losses to companies in this sector, which may negatively impact a Fund. |
■
|
Information Technology Sector Risk. The Information Technology sector includes companies engaged in internet software and services, technology hardware and storage peripherals, electronic equipment instruments and components, and semiconductors and semiconductor equipment. Information Technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Information Technology companies may have limited product lines, markets, financial resources or personnel. The products of Information Technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base or achieve general market acceptance for their products could have a material adverse effect on a company’s business. Companies in the Information Technology sector may be subject to increased government scrutiny or adverse government or regulatory action. Additionally, companies in the Information Technology sector are heavily dependent on intellectual property and the loss of patent, copyright and trademark protections may adversely affect the profitability of these companies. The market prices of Information Technology-related securities tend to exhibit a greater degree of market risk and sharp price fluctuations than other types of securities. These securities may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices.
|
American Beacon Fund
|
Aggregate Management and Investment Advisory Fees
|
American Beacon Bridgeway Large Cap Growth Fund
|
0.69%
|
American Beacon Bridgeway Large Cap Value Fund
|
0.73%
|
American Beacon Fund
|
A Class
|
C Class
|
Y Class
|
R6 Class
|
R5 Class
|
Investor Class
|
American Beacon Bridgeway Large Cap Growth Fund
|
1.09%
|
1.83%
|
0.83%
|
0.77%
|
0.80%
|
1.12%
|
■
|
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.” |
■
|
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
|
R5
|
$250,000
|
$50
|
None
|
R6
|
None
|
$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
|
R5
|
$250,000
|
$50
|
None
|
R6
|
None
|
$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
|
Other Distributions Paid
|
American Beacon Bridgeway Large Cap Growth Fund
|
Annually
|
Annually
|
American Beacon Bridgeway Large Cap Value Fund
|
Annually
|
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
|
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 Bridgeway Large Cap Growth FundSM
|
|||||
|
A Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$22.90
|
$36.08
|
$35.77
|
$29.51
|
$25.12
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income (loss)
|
(0.04
)
A
|
0.03
A
|
(0.16
)
|
(0.10
)
|
(0.03
)
|
Net gains (losses) on investments (both realized and unrealized)
|
7.14
|
(9.18
)
|
7.76
|
10.17
|
7.50
|
Total income (loss) from investment operations
|
7.10
|
(9.15
)
|
7.60
|
10.07
|
7.47
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.06
)
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
(0.13
)
|
(4.03
)
|
(7.29
)
|
(3.81
)
|
(3.08
)
|
Total distributions
|
(0.19
)
|
(4.03
)
|
(7.29
)
|
(3.81
)
|
(3.08
)
|
Net asset value, end of period
|
$29.81
|
$22.90
|
$36.08
|
$35.77
|
$29.51
|
Total returnB
|
31.00
%
|
(25.38
)%
|
21.47
%
|
34.11
%
|
29.74
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$1,702,761
|
$1,102,933
|
$1,955,909
|
$2,212,193
|
$2,029,102
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.26
%
|
1.36
%
|
1.21
%
|
1.27
%
|
1.18
%
|
Expenses, net of reimbursements and/or recoupments
|
1.09
%
|
1.09
%
|
1.10
%
|
1.14
%
|
1.21
%
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(0.32
)%
|
(0.18
)%
|
(0.40
)%
|
(0.39
)%
|
(0.09
)%
|
Net investment income (loss), net of reimbursements and/or recoupments
|
(0.15
)%
|
0.09
%
|
(0.29
)%
|
(0.26
)%
|
(0.12
)%
|
Portfolio turnover rate
|
78
%
|
72
%
|
57
%
|
58
%
|
77
%
|
A | Per share amounts have been calculated using the average shares method. |
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 Bridgeway Large Cap Growth FundSM
|
|||||
|
C Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$21.01
|
$33.81
|
$34.15
|
$28.53
|
$24.55
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment (loss)
|
(0.22
)
A
|
(1.11
)
|
(0.46
)
|
(0.01
)
|
(0.20
)
|
Net gains (losses) on investments (both realized and unrealized)
|
6.54
|
(7.66
)
|
7.41
|
9.44
|
7.26
|
Total income (loss) from investment operations
|
6.32
|
(8.77
)
|
6.95
|
9.43
|
7.06
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
(0.13
)
|
(4.03
)
|
(7.29
)
|
(3.81
)
|
(3.08
)
|
Total distributions
|
(0.13
)
|
(4.03
)
|
(7.29
)
|
(3.81
)
|
(3.08
)
|
Net asset value, end of period
|
$27.20
|
$21.01
|
$33.81
|
$34.15
|
$28.53
|
Total returnB
|
30.09
%
|
(25.97
)%
|
20.58
%
|
33.04
%
|
28.75
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$1,110,747
|
$684,305
|
$2,109,687
|
$2,575,041
|
$1,086,848
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
2.01
%
|
2.20
%
|
1.95
%
|
2.01
%
|
1.92
%
|
Expenses, net of reimbursements and/or recoupments
|
1.83
%
|
1.83
%
|
1.84
%
|
1.87
%
C
|
1.96
%
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(1.08
)%
|
(1.04
)%
|
(1.14
)%
|
(1.14
)%
|
(0.83
)%
|
Net investment (loss), net of reimbursements and/or recoupments
|
(0.90
)%
|
(0.67
)%
|
(1.03
)%
|
(1.00
)%
|
(0.87
)%
|
Portfolio turnover rate
|
78
%
|
72
%
|
57
%
|
58
%
|
77
%
|
A
|
Per share amounts have been calculated using the average shares method.
|
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 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
American Beacon Bridgeway Large Cap Growth FundSM
|
|||||
|
Y Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$23.30
|
$36.53
|
$36.05
|
$29.72
|
$25.21
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income (loss)
|
0.05
|
0.03
|
(0.04
)
|
0.00
A
|
0.05
|
Net gains (losses) on investments (both realized and unrealized)
|
7.25
|
(9.23
)
|
7.81
|
10.21
|
7.54
|
Total income (loss) from investment operations
|
7.30
|
(9.20
)
|
7.77
|
10.21
|
7.59
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.10
)
|
-
|
-
|
(0.07
)
|
-
|
Distributions from net realized gains
|
(0.13
)
|
(4.03
)
|
(7.29
)
|
(3.81
)
|
(3.08
)
|
Total distributions
|
(0.23
)
|
(4.03
)
|
(7.29
)
|
(3.88
)
|
(3.08
)
|
Net asset value, end of period
|
$30.37
|
$23.30
|
$36.53
|
$36.05
|
$29.72
|
Total returnB
|
31.34
%
|
(25.21
)%
|
21.77
%
|
34.34
%
|
30.11
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$3,690,269
|
$608,328
|
$2,237,130
|
$3,168,012
|
$2,036,785
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.03
%
|
1.17
%
|
0.95
%
|
1.02
%
|
0.95
%
|
Expenses, net of reimbursements and/or recoupments
|
0.83
%
|
0.84
%
C
|
0.86
%
|
0.89
%
D
|
0.91
%
|
Net investment income (loss), before expense reimbursements and/or recoupments
|
(0.12
)%
|
0.00
%
E
|
(0.15
)%
|
(0.14
)%
|
0.12
%
|
Net investment income (loss), net of reimbursements and/or recoupments
|
0.08
%
|
0.33
%
|
(0.06
)%
|
(0.01
)%
|
0.16
%
|
Portfolio turnover rate
|
78
%
|
72
%
|
57
%
|
58
%
|
77
%
|
A
|
Amount represents less than $0.01 per share.
|
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 of the Notes to the Financial Statements in the Annual Shareholder Report due to the change in the contractual expense caps on May 31, 2022.
|
D
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
E
|
Amount represents less than 0.005% of average net assets.
|
American Beacon Bridgeway Large Cap Growth FundSM
|
|||||
|
R6 Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$23.59
|
$36.89
|
$36.31
|
$29.86
|
$25.28
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income
|
0.07
|
0.12
|
0.03
|
0.04
A
|
0.10
|
Net gains (losses) on investments (both realized and unrealized)
|
7.34
|
(9.39
)
|
7.84
|
10.29
|
7.56
|
Total income (loss) from investment operations
|
7.41
|
(9.27
)
|
7.87
|
10.33
|
7.66
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.10
)
|
-
|
-
|
(0.07
)
|
-
|
Distributions from net realized gains
|
(0.13
)
|
(4.03
)
|
(7.29
)
|
(3.81
)
|
(3.08
)
|
Total distributions
|
(0.23
)
|
(4.03
)
|
(7.29
)
|
(3.88
)
|
(3.08
)
|
Net asset value, end of period
|
$30.77
|
$23.59
|
$36.89
|
$36.31
|
$29.86
|
Total returnB
|
31.42
%
|
(25.15
)%
|
21.90
%
|
34.58
%
|
30.30
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$11,358,272
|
$9,989,847
|
$18,361,929
|
$16,307,767
|
$107,424
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
0.92
%
|
0.90
%
|
0.88
%
|
0.91
%
|
0.84
%
|
Expenses, net of reimbursements and/or recoupments
|
0.77
%
|
0.76
%
|
0.76
%
|
0.76
%
|
0.76
%
|
Net investment income (loss), before expense reimbursements and/or recoupments
|
0.04
%
|
0.29
%
|
(0.06
)%
|
(0.05
)%
|
0.25
%
|
Net investment income, net of reimbursements and/or recoupments
|
0.19
%
|
0.43
%
|
0.06
%
|
0.10
%
|
0.33
%
|
Portfolio turnover rate
|
78
%
|
72
%
|
57
%
|
58
%
|
77
%
|
A
|
Per share amounts have been calculated using the average shares method.
|
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 Bridgeway Large Cap Growth FundSM
|
|||||
|
R5 ClassA
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$23.50
|
$36.78
|
$36.24
|
$29.84
|
$25.27
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income
|
0.07
|
0.12
|
0.01
|
0.07
|
0.10
|
Net gains (losses) on investments (both realized and unrealized)
|
7.30
|
(9.37
)
|
7.82
|
10.21
|
7.55
|
Total income (loss) from investment operations
|
7.37
|
(9.25
)
|
7.83
|
10.28
|
7.65
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.10
)
|
-
|
-
|
(0.07
)
|
-
|
Distributions from net realized gains
|
(0.13
)
|
(4.03
)
|
(7.29
)
|
(3.81
)
|
(3.08
)
|
Total distributions
|
(0.23
)
|
(4.03
)
|
(7.29
)
|
(3.88
)
|
(3.08
)
|
Net asset value, end of period
|
$30.64
|
$23.50
|
$36.78
|
$36.24
|
$29.84
|
Total returnB
|
31.37
%
|
(25.17
)%
|
21.82
%
|
34.44
%
|
30.27
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$83,676,439
|
$69,755,325
|
$112,640,010
|
$114,246,613
|
$118,831,764
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
0.97
%
|
0.94
%
|
0.92
%
|
0.97
%
|
0.90
%
|
Expenses, net of reimbursements and/or recoupments
|
0.80
%
|
0.80
%
|
0.81
%
|
0.82
%
C
|
0.81
%
|
Net investment income (loss), before expense reimbursements and/or recoupments
|
(0.02
)%
|
0.25
%
|
(0.10
)%
|
(0.08
)%
|
0.19
%
|
Net investment income, net of reimbursements and/or recoupments
|
0.15
%
|
0.39
%
|
0.01
%
|
0.07
%
|
0.28
%
|
Portfolio turnover rate
|
78
%
|
72
%
|
57
%
|
58
%
|
77
%
|
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.
|
C
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
American Beacon Bridgeway Large Cap Growth FundSM
|
|||||
|
Investor Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$22.74
|
$35.89
|
$35.61
|
$29.42
|
$25.05
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income (loss)
|
(0.06
)
|
0.05
|
(0.08
)
|
(0.08
)
|
(0.04
)
|
Net gains (losses) on investments (both realized and unrealized)
|
7.11
|
(9.17
)
|
7.65
|
10.08
|
7.49
|
Total income (loss) from investment operations
|
7.05
|
(9.12
)
|
7.57
|
10.00
|
7.45
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.04
)
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
(0.13
)
|
(4.03
)
|
(7.29
)
|
(3.81
)
|
(3.08
)
|
Total distributions
|
(0.17
)
|
(4.03
)
|
(7.29
)
|
(3.81
)
|
(3.08
)
|
Net asset value, end of period
|
$29.62
|
$22.74
|
$35.89
|
$35.61
|
$29.42
|
Total returnA
|
31.01
%
|
(25.44
)%
|
21.48
%
|
33.98
%
|
29.74
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$82,767,017
|
$66,552,222
|
$95,710,995
|
$84,109,027
|
$71,928,098
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.28
%
|
1.25
%
|
1.24
%
|
1.31
%
|
1.20
%
|
Expenses, net of reimbursements and/or recoupments
|
1.12
%
|
1.12
%
|
1.12
%
|
1.15
%
B
|
1.19
%
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(0.32
)%
|
(0.06
)%
|
(0.42
)%
|
(0.43
)%
|
(0.11
)%
|
Net investment income (loss), net of reimbursements and/or recoupments
|
(0.16
)%
|
0.07
%
|
(0.30
)%
|
(0.27
)%
|
(0.10
)%
|
Portfolio turnover rate
|
78
%
|
72
%
|
57
%
|
58
%
|
77
%
|
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.
|
B
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
American Beacon Bridgeway Large Cap Value FundSM
|
|||||
|
A Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$23.02
|
$26.18
|
$23.43
|
$26.92
|
$22.41
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income
|
0.36
|
0.41
|
0.45
|
0.84
|
0.58
|
Net gains (losses) on investments (both realized and unrealized)
|
2.12
|
(2.50
)
|
4.78
|
(1.81
)
|
4.95
|
Total income (loss) from investment operations
|
2.48
|
(2.09
)
|
5.23
|
(0.97
)
|
5.53
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.44
)
|
(0.49
)
|
(1.49
)
|
-
|
(0.41
)
|
Distributions from net realized gains
|
(2.25
)
|
(0.58
)
|
(0.99
)
|
(2.52
)
|
(0.61
)
|
Total distributions
|
(2.69
)
|
(1.07
)
|
(2.48
)
|
(2.52
)
|
(1.02
)
|
Net asset value, end of period
|
$22.81
|
$23.02
|
$26.18
|
$23.43
|
$26.92
|
Total returnA
|
10.81
%
|
(8.00
)%
|
22.51
%
|
(3.38
)%
|
24.70
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$18,676,222
|
$19,853,284
|
$26,438,159
|
$24,734,491
|
$58,637,332
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.23
%
|
1.12
%
|
1.08
%
|
1.10
%
|
1.10
%
|
Expenses, net of reimbursements and/or recoupments
|
1.23
%
|
1.12
%
|
1.07
%
|
1.10
%
|
1.10
%
|
Net investment income, before expense reimbursements and/or recoupments
|
1.30
%
|
1.47
%
|
1.05
%
|
1.40
%
|
1.35
%
|
Net investment income, net of reimbursements and/or recoupments
|
1.30
%
|
1.47
%
|
1.06
%
|
1.40
%
|
1.35
%
|
Portfolio turnover rate
|
54
%
|
54
%
|
51
%
|
43
%
|
44
%
|
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 Bridgeway Large Cap Value FundSM
|
|||||
|
C Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$22.11
|
$25.17
|
$22.60
|
$26.25
|
$21.86
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income
|
0.13
A
|
0.17
A
|
0.21
|
0.22
|
0.21
|
Net gains (losses) on investments (both realized and unrealized)
|
2.09
|
(2.37
)
|
4.63
|
(1.35
)
|
4.99
|
Total income (loss) from investment operations
|
2.22
|
(2.20
)
|
4.84
|
(1.13
)
|
5.20
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.24
)
|
(0.28
)
|
(1.28
)
|
-
|
(0.20
)
|
Distributions from net realized gains
|
(2.25
)
|
(0.58
)
|
(0.99
)
|
(2.52
)
|
(0.61
)
|
Total distributions
|
(2.49
)
|
(0.86
)
|
(2.27
)
|
(2.52
)
|
(0.81
)
|
Net asset value, end of period
|
$21.84
|
$22.11
|
$25.17
|
$22.60
|
$26.25
|
Total returnB
|
10.08
%
|
(8.73
)%
|
21.58
%
|
(4.08
)%
|
23.79
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$16,771,478
|
$20,717,120
|
$29,384,166
|
$30,186,523
|
$59,409,216
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.94
%
|
1.88
%
|
1.84
%
|
1.83
%
|
1.81
%
|
Expenses, net of reimbursements and/or recoupments
|
1.94
%
|
1.88
%
|
1.83
%
|
1.83
%
|
1.81
%
|
Net investment income, before expense reimbursements and/or recoupments
|
0.59
%
|
0.72
%
|
0.28
%
|
0.69
%
|
0.63
%
|
Net investment income, net of reimbursements and/or recoupments
|
0.59
%
|
0.72
%
|
0.29
%
|
0.69
%
|
0.63
%
|
Portfolio turnover rate
|
54
%
|
54
%
|
51
%
|
43
%
|
44
%
|
A
|
Per share amounts have been calculated using the average shares method.
|
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 Bridgeway Large Cap Value FundSM
|
|||||
|
Y Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$23.24
|
$26.43
|
$23.63
|
$27.06
|
$22.54
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income
|
0.42
|
0.48
|
0.89
|
0.67
|
0.46
|
Net gains (losses) on investments (both realized and unrealized)
|
2.17
|
(2.54
)
|
4.46
|
(1.58
)
|
5.19
|
Total income (loss) from investment operations
|
2.59
|
(2.06
)
|
5.35
|
(0.91
)
|
5.65
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.52
)
|
(0.55
)
|
(1.56
)
|
(0.00
)
A
|
(0.52
)
|
Distributions from net realized gains
|
(2.25
)
|
(0.58
)
|
(0.99
)
|
(2.52
)
|
(0.61
)
|
Total distributions
|
(2.77
)
|
(1.13
)
|
(2.55
)
|
(2.52
)
|
(1.13
)
|
Net asset value, end of period
|
$23.06
|
$23.24
|
$26.43
|
$23.63
|
$27.06
|
Total returnB
|
11.19
%
|
(7.81
)%
|
22.84
%
|
(3.14
)%
|
25.06
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$91,172,593
|
$121,618,005
|
$191,459,312
|
$284,218,555
|
$1,455,648,440
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
0.94
%
|
0.88
%
|
0.82
%
|
0.83
%
|
0.80
%
|
Expenses, net of reimbursements and/or recoupments
|
0.94
%
|
0.87
%
|
0.82
%
|
0.83
%
|
0.80
%
|
Net investment income, before expense reimbursements and/or recoupments
|
1.59
%
|
1.71
%
|
1.29
%
|
1.66
%
|
1.65
%
|
Net investment income, net of reimbursements and/or recoupments
|
1.59
%
|
1.72
%
|
1.29
%
|
1.66
%
|
1.65
%
|
Portfolio turnover rate
|
54
%
|
54
%
|
51
%
|
43
%
|
44
%
|
A
|
Amount represents less than $0.01 per share.
|
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 Bridgeway Large Cap Value FundSM
|
|||||
|
R6 Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$23.32
|
$26.53
|
$23.71
|
$27.12
|
$22.59
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income
|
0.23
|
0.45
A
|
0.53
|
0.24
|
0.49
|
Net gains (losses) on investments (both realized and unrealized)
|
2.39
|
(2.50
)
|
4.87
|
(1.12
)
|
5.20
|
Total income (loss) from investment operations
|
2.62
|
(2.05
)
|
5.40
|
(0.88
)
|
5.69
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.55
)
|
(0.58
)
|
(1.59
)
|
(0.01
)
|
(0.55
)
|
Distributions from net realized gains
|
(2.25
)
|
(0.58
)
|
(0.99
)
|
(2.52
)
|
(0.61
)
|
Total distributions
|
(2.80
)
|
(1.16
)
|
(2.58
)
|
(2.53
)
|
(1.16
)
|
Net asset value, end of period
|
$23.14
|
$23.32
|
$26.53
|
$23.71
|
$27.12
|
Total returnB
|
11.29
%
|
(7.74
)%
|
22.99
%
|
(3.03
)%
|
25.17
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$23,587,323
|
$25,796,145
|
$71,972,572
|
$97,789,536
|
$227,580,520
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
0.84
%
|
0.77
%
|
0.72
%
|
0.73
%
|
0.70
%
|
Expenses, net of reimbursements and/or recoupments
|
0.84
%
|
0.77
%
|
0.72
%
|
0.73
%
|
0.70
%
|
Net investment income, before expense reimbursements and/or recoupments
|
1.71
%
|
1.81
%
|
1.39
%
|
1.77
%
|
1.76
%
|
Net investment income, net of reimbursements and/or recoupments
|
1.71
%
|
1.81
%
|
1.39
%
|
1.77
%
|
1.76
%
|
Portfolio turnover rate
|
54
%
|
54
%
|
51
%
|
43
%
|
44
%
|
A
|
Per share amounts have been calculated using the average shares method.
|
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 Bridgeway Large Cap Value FundSM
|
|||||
|
R5 ClassA
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$23.35
|
$26.55
|
$23.73
|
$27.14
|
$22.61
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income
|
0.12
|
0.49
|
0.69
|
0.59
|
0.55
|
Net gains (losses) on investments (both realized and unrealized)
|
2.49
|
(2.55
)
|
4.71
|
(1.48
)
|
5.13
|
Total income (loss) from investment operations
|
2.61
|
(2.06
)
|
5.40
|
(0.89
)
|
5.68
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.53
)
|
(0.56
)
|
(1.59
)
|
(0.00
)
B
|
(0.54
)
|
Distributions from net realized gains
|
(2.25
)
|
(0.58
)
|
(0.99
)
|
(2.52
)
|
(0.61
)
|
Total distributions
|
(2.78
)
|
(1.14
)
|
(2.58
)
|
(2.52
)
|
(1.15
)
|
Net asset value, end of period
|
$23.18
|
$23.35
|
$26.55
|
$23.73
|
$27.14
|
Total returnC
|
11.25
%
|
(7.74
)%
|
22.93
%
|
(3.05
)%
|
25.11
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$88,833,933
|
$220,554,216
|
$364,332,529
|
$445,009,590
|
$1,205,569,140
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
0.87
%
|
0.81
%
|
0.75
%
|
0.75
%
|
0.73
%
|
Expenses, net of reimbursements and/or recoupments
|
0.87
%
|
0.81
%
|
0.74
%
|
0.75
%
|
0.73
%
|
Net investment income, before expense reimbursements and/or recoupments
|
1.68
%
|
1.81
%
|
1.37
%
|
1.76
%
|
1.71
%
|
Net investment income, net of reimbursements and/or recoupments
|
1.68
%
|
1.81
%
|
1.38
%
|
1.76
%
|
1.71
%
|
Portfolio turnover rate
|
54
%
|
54
%
|
51
%
|
43
%
|
44
%
|
A
|
Prior to February 28, 2020, the R5 Class was known as Institutional Class.
|
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.
|
American Beacon Bridgeway Large Cap Value FundSM
|
|||||
|
Investor Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$23.17
|
$26.35
|
$23.56
|
$27.05
|
$22.50
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income
|
1.05
|
0.95
|
1.39
|
2.12
|
0.62
|
Net gains (losses) on investments (both realized and unrealized)
|
1.47
|
(3.07
)
|
3.87
|
(3.09
)
|
4.95
|
Total income (loss) from investment operations
|
2.52
|
(2.12
)
|
5.26
|
(0.97
)
|
5.57
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.45
)
|
(0.48
)
|
(1.48
)
|
-
|
(0.41
)
|
Distributions from net realized gains
|
(2.25
)
|
(0.58
)
|
(0.99
)
|
(2.52
)
|
(0.61
)
|
Total distributions
|
(2.70
)
|
(1.06
)
|
(2.47
)
|
(2.52
)
|
(1.02
)
|
Net asset value, end of period
|
$22.99
|
$23.17
|
$26.35
|
$23.56
|
$27.05
|
Total returnA
|
10.92
%
|
(8.04
)%
|
22.51
%
|
(3.36
)%
|
24.74
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$55,177,185
|
$68,797,588
|
$96,839,009
|
$121,683,174
|
$587,724,123
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.18
%
|
1.13
%
|
1.08
%
|
1.10
%
|
1.08
%
|
Expenses, net of reimbursements and/or recoupments
|
1.18
%
|
1.13
%
|
1.08
%
|
1.10
%
|
1.08
%
|
Net investment income, before expense reimbursements and/or recoupments
|
1.36
%
|
1.46
%
|
1.04
%
|
1.44
%
|
1.37
%
|
Net investment income, net of reimbursements and/or recoupments
|
1.36
%
|
1.46
%
|
1.04
%
|
1.44
%
|
1.37
%
|
Portfolio turnover rate
|
54
%
|
54
%
|
51
%
|
43
%
|
44
%
|
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:
|
americanbeaconfunds@ambeacon.com
|
On the Internet:
|
American Beacon is a registered service mark of American Beacon Advisors, Inc. The American Beacon Funds, American Beacon Bridgeway Large Cap Growth Fund and American Beacon Bridgeway Large Cap Value 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 exchanged from Class C (i.e., level-load) shares that are no longer subject to a CDSC and are exchanged into Class A shares of the same fund pursuant to J.P. Morgan Securities LLC’s share class exchange policy.
|
■
|
Qualified employer-sponsored defined contribution and defined benefit retirement plans, nonqualified deferred compensation plans, other employee benefit plans and trusts used to fund those plans. For purposes of this provision, such plans do not include SEP IRAs, SIMPLE IRAs, SAR-SEPs or 501(c)(3) accounts.
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Shares of funds purchased through J.P. Morgan Securities LLC Self-Directed Investing accounts.
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Shares purchased through rights of reinstatement.
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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).
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Shares purchased by employees and registered representatives of J.P. Morgan Securities LLC or its affiliates and their spouse or financial dependent as defined by J.P. Morgan Securities LLC.
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A shareholder in the fund’s Class C shares will have their shares converted by J.P. Morgan Securities LLC to Class A shares (or the appropriate share class) of the same fund if the shares are no longer subject to a CDSC and the conversion is consistent with J.P. Morgan Securities LLC’s policies and procedures.
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Shares sold upon the death or disability of the shareholder.
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Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
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Shares purchased in connection with a return of excess contributions from an IRA account.
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Shares sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code.
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Shares acquired through a right of reinstatement.
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Breakpoints as described in the prospectus.
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Rights of Accumulation (“ROA”) which entitle shareholders to breakpoint discounts as described in the fund’s prospectus will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at J.P. Morgan Securities LLC. Eligible fund family assets not held at J.P. Morgan Securities LLC (including 529 program holdings, where applicable) may be included in the ROA calculation only if the shareholder notifies their financial advisor about such assets.
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Letters of Intent (“LOI”) which allow for breakpoint discounts based on anticipated purchases within a fund family, through J.P. Morgan Securities LLC, over a 13-month period of time (if applicable).
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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
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Shares purchased through a Merrill investment advisory program
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Brokerage class shares exchanged from advisory class shares due to the holdings moving from a Merrill investment advisory program to a Merrill brokerage account
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Shares purchased through the Merrill Edge Self-Directed platform
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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
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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
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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)
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Shares purchased by eligible persons associated with the fund as defined in this prospectus (e.g. the fund’s officers or trustees)
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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
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Shares sold due to the client’s death or disability (as defined by Internal Revenue Code Section 22I(3))
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Shares sold pursuant to a systematic withdrawal program subject to Merrill’s maximum systematic withdrawal limits as described in the Merrill SLWD Supplement
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Shares sold due to return of excess contributions from an IRA account
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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
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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
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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
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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
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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
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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
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Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules
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Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund
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Shares purchased through a Morgan Stanley self-directed brokerage account
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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
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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.
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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
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Shares purchased by or through a 529 Plan
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Shares purchased through an OPCO affiliated investment advisory program
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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)
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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).
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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
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Employees and registered representatives of OPCO or its affiliates and their family members
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Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus
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Death or disability of the shareholder
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Shares sold as part of a systematic withdrawal plan as described in the Fund’s prospectus
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Return of excess contributions from an IRA Account
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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
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Shares sold to pay OPCO fees but only if the transaction is initiated by OPCO
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Shares acquired through a right of reinstatement
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Breakpoints as described in this prospectus.
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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.
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Shares purchased in an investment advisory program.
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Shares purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
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Employees and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
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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).
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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.
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Death or disability of the shareholder.
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Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
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Return of excess contributions from an IRA Account.
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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.
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Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
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Shares acquired through a right of reinstatement.
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Breakpoints as described in this Prospectus.
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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.
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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.
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ACH
|
Automated Clearing House
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ADRs
|
American Depositary Receipts
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Advisers Act
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Investment Advisers Act of 1940, as amended
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American Beacon or Manager
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American Beacon Advisors, Inc.
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Beacon Funds
|
American Beacon Funds
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Board
|
Board of Trustees
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Brexit
|
The United Kingdom’s departure from the European Union
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Capital Gains Distributions
|
Distributions of realized net capital gains
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CDSC
|
Contingent Deferred Sales Charge
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CFTC
|
Commodity Futures Trading Commission
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Covered Shares
|
Fund shares that the shareholder acquired or acquires after 2011
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CPO
|
Commodity Pool Operator
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Denial of Services
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A cybersecurity incident that results in customers or employees being unable to access electronic systems
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Dividends
|
Distributions from a Fund’s net investment income
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DRD
|
Dividends-received deduction
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Equity REIT
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A pooled investment vehicle that owns, and often operates, income producing real estate
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ESG
|
Environmental, Social, and/or Governance
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ETF
|
Exchange-Traded Fund
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EU
|
European Union
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Hybrid REIT
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A pooled investment vehicle that owns, and often operates, income producing real estate and invests in mortgages secured by loans on such real estate
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Internal Revenue Code
|
Internal Revenue Code of 1986, as amended
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Investment Company Act
|
Investment Company Act of 1940, as amended
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IRA
|
Individual Retirement Account
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IRS
|
Internal Revenue Service
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LOI
|
Letter of Intent
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Management Agreement
|
A Fund’s Management Agreement with the Manager
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Mortgage REIT
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A pooled investment vehicle that invests in mortgages secured by loans on income producing real estate
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NAV
|
Fund’s net asset value
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NYSE
|
New York Stock Exchange
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Other Distributions
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Distributions of net gains from foreign currency transactions
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OTC
|
Over-the-Counter
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Proxy Policy
|
Proxy Voting Policy and Procedures
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QDI
|
Qualified Dividend Income
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REIT
|
Real Estate Investment Trust
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RIC
|
Regulated Investment Company
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SAI
|
Statement of Additional Information
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SEC
|
Securities and Exchange Commission
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State Street
|
State Street Bank and Trust Company
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SVP
|
Signature Validation Program
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Trust
|
American Beacon Funds
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UGMA
|
Uniform Gifts to Minors Act
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UK
|
United Kingdom
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UTMA
|
Uniform Transfers to Minors Act
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Ticker
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|||||
Share Class
|
A
|
C
|
Y
|
R6
|
R5
|
Investor
|
American Beacon Bridgeway Large Cap Growth Fund
|
BLYAX
|
BLYCX
|
BLYYX
|
BLYRX
|
BRLGX
|
BLYPX
|
American Beacon Bridgeway Large Cap Value Fund
|
BWLAX
|
BWLCX
|
BWLYX
|
BWLRX
|
BRLVX
|
BWLIX
|
Strategy/Risk
|
American Beacon Bridgeway Large Cap Growth Fund
|
American Beacon Bridgeway Large Cap Value Fund
|
Borrowing Risk
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X
|
X
|
Cash Equivalents and Other Short-Term Investments
|
X
|
X
|
|
X
|
X
|
|
X
|
X
|
|
X
|
X
|
|
X
|
X
|
|
X
|
X
|
|
X
|
X
|
|
X
|
X
|
|
X
|
X
|
|
X
|
X
|
|
X
|
X
|
Cover and Asset Segregation
|
X
|
X
|
Cybersecurity and Operational Risk
|
X
|
X
|
Derivatives
|
X
|
X
|
|
X
|
X
|
Equity Investments
|
X
|
X
|
|
X
|
X
|
ESG Considerations
|
X
|
X
|
Expense Risk
|
X
|
X
|
Foreign Securities
|
X
|
X
|
Growth Companies
|
X
|
|
Interfund Lending
|
X
|
X
|
Issuer Risk
|
X
|
X
|
Large-Capitalization Companies Risk
|
X
|
X
|
Mid-Capitalization Companies Risk
|
X
|
X
|
Model and Data Risk
|
X
|
X
|
Other Investment Company Securities and Exchange-Traded Products
|
X
|
X
|
Strategy/Risk
|
American Beacon Bridgeway Large Cap Growth Fund
|
American Beacon Bridgeway Large Cap Value Fund
|
|
X
|
X
|
Quantitative Strategy Risk
|
X
|
X
|
Real Estate Related Investments
|
X
|
X
|
Redemption Risk
|
X
|
X
|
U.S. Government Agency Securities
|
X
|
X
|
U.S. Treasury Obligations
|
X
|
X
|
Valuation Risk
|
X
|
X
|
Value Companies Risk
|
X
|
X
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Bank Deposit Notes. Bank deposit notes are obligations of a bank that provide an alternative to certificates of deposit. Similar to certificates of deposit, deposit notes represent bank level investment and, therefore, are senior to all holding company corporate debt. Bank deposit notes rank junior to domestic deposit liabilities of the bank and pari passu with other senior, unsecured obligations of the bank. Typically, bank deposit notes are not insured by the Federal Deposit Insurance Corporation or any other insurer.
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Bankers’ Acceptances. Bankers’ acceptances are short-term credit instruments designed to enable businesses to obtain funds to finance commercial transactions. Generally, an acceptance is a time draft drawn on a bank by an exporter or an importer to obtain a stated amount of funds to pay for specific merchandise. The draft is then “accepted” by a bank that, in effect, unconditionally guarantees to pay the face value of the instrument on its maturity date. The acceptance may then be held by the accepting bank as an earning asset or it may be sold in the secondary market at the going rate of discount for a specific maturity. Most acceptances have maturities of six months or less. Bankers’ acceptances rank junior to domestic deposit liabilities of the bank and pari passu with other senior, unsecured obligations of the bank.
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Bearer Deposit Notes. Bearer deposit notes, or bearer bonds, are bonds or debt securities that entitle the holder of the document to ownership or title in the deposit. Such notes are typically unregistered, and whoever physically holds the bond is presumed to be the owner of the instrument. Recovery of the value of a bearer bond in the event of its loss or destruction usually is impossible. Interest is typically paid upon presentment of an interest coupon for payment.
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CDs. CDs are negotiable certificates issued against funds deposited in an eligible bank (including its domestic and foreign branches, subsidiaries and agencies) for a definite period of time and earning a specified rate of return. U.S. dollar denominated CDs issued by banks abroad are known as Eurodollar CDs. CDs issued by foreign branches of U.S. banks are known as Yankee CDs.
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Commercial Paper. Commercial paper is a short-term debt security issued by a corporation, bank, municipality, or other issuer, usually for purposes such as financing current operations. A Fund may invest in commercial paper that cannot be resold to the public without an effective registration statement under the Securities Act. While some restricted commercial paper normally is deemed illiquid, in certain cases it may be deemed liquid.
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Government Money Market Funds. A Fund may invest cash balances in money market funds that are registered as investment companies under the Investment Company Act, including money market funds that are advised by the Manager. Money market funds invest in highly-liquid, short-term instruments, which include cash and cash equivalents, and debt securities with high credit ratings and short-term maturities, such as U.S. Treasuries. A “government money market fund” is required to invest at least 99.5% of its total assets in cash, U.S. government securities, and/or repurchase agreements that are fully collateralized by government securities or cash. Government securities include any security issued or guaranteed as to principal or interest by the U.S. government and its agencies or instrumentalities. By investing in a money market fund, a Fund becomes a shareholder of that money market fund. As a result, Fund shareholders indirectly bear their proportionate share of the expenses of the money market funds in which a Fund invests in addition to any fees and expenses Fund shareholders directly bear in connection with a Fund’s own operations. These expenses may include, for example, advisory and administrative fees, including advisory fees charged by the Manager to any applicable money market funds advised by the Manager. These other fees and expenses are reflected in the Fees and Expenses Table for a Fund in its Prospectus, if applicable. Shareholders also would be exposed to the risks associated with money market funds and the portfolio investments of such money market funds, including that a money market fund’s yield will be lower than the return that a Fund would have derived from other investments that would provide liquidity. Although a 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 money market fund’s investments, increases in interest rates and deteriorations in the credit
|
quality of the instruments the money market fund has purchased can cause the price of a money market security to decrease and may reduce the money market fund’s yield. In addition, a money market fund is subject to the risk that the value of an investment may be eroded over time by inflation. Factors that could adversely affect the value of a money market fund’s shares include, among other things, a sharp rise in interest rates, an illiquid market for the securities held by the money market fund, a high volume of redemption activity in a money market fund’s shares, and a credit event or credit rating downgrade affecting one or more of the issuers of securities held by the money market fund. There can be no assurance that a money market fund will maintain a $1.00 per share net asset value (“NAV”) at all times.
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Government Obligations. Government obligations may include U.S. Treasury securities, Treasury inflation-protected securities, and other debt instruments backed by the full faith and credit of the United States, or debt obligations of U.S. Government-sponsored entities.
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Repurchase Agreements. Repurchase agreements are agreements pursuant to which a Fund purchases securities from a bank that is a member of the Federal Reserve System (or a foreign bank or U.S. branch or agency of a foreign bank), or from a securities dealer, that agrees to repurchase the securities from a Fund at a higher price on a designated future date. Repurchase agreements generally are for a short period of time, usually less than a week. Costs, delays, or losses could result if the selling party to a repurchase agreement becomes bankrupt or otherwise defaults.
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Short-term Corporate Debt Securities. Short-term corporate debt securities are securities and bonds issued by corporations with shorter terms to maturity. Corporate securities generally bear a higher risk than U.S. government bonds.
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Time Deposits. Time deposits, also referred to as “fixed time deposits,” are non-negotiable deposits maintained at a banking institution for a specified period of time at a specified interest rate. Time deposits may be withdrawn on demand by the investor, but may be subject to early withdrawal penalties which vary depending upon market conditions and the remaining maturity of the obligation. There are no contractual restrictions on the right to transfer a beneficial interest in a time deposit to a third party, although there is no market for such deposits.
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Futures Contracts. A Fund may enter into futures contracts. Futures contracts are a type of derivative instrument that obligate the purchaser to take delivery of, or cash settle a specific amount of, a commodity, security or other obligation underlying the contract at a specified time in the future for a specified price. Likewise, the seller incurs an obligation to deliver the specified amount of the underlying obligation against receipt of the specified price. Futures are traded on both U.S. and foreign commodities exchanges. The purchase of futures can serve as a long hedge, and the sale of futures can serve as a short hedge.
No price is paid upon entering into a futures contract. Instead, at the inception of a futures contract, a Fund is required to deposit “initial margin” consisting of cash, U.S. Government securities, suitable money market instruments, or liquid, high-grade debt securities in an amount set by the exchange on which the contract is traded and varying based on the volatility of the underlying asset. Margin must also be deposited when writing a call or put option on a futures contract, in accordance with applicable exchange rules. Unlike margin in securities transactions, initial margin on futures contracts does not represent a borrowing, but rather is in the nature of a performance bond or good-faith deposit that is returned to a Fund at the termination of the transaction if all contractual obligations have been satisfied. Under certain circumstances, such as periods of high volatility, a Fund may be required by a futures exchange to increase the level of its initial margin payment, and initial margin requirements might be increased generally in the future by regulatory action. Subsequent “variation margin” payments (sometimes referred to as “maintenance margin” payments) are made to and from the futures broker daily as the value of the futures position varies, a process known as “marking-to-market.” Variation margin does not involve borrowing, but rather represents a daily settlement of a Fund’s obligations to or from a futures broker. When a Fund purchases or sells a futures contract, it is subject to daily, or even intraday, variation margin calls that could be substantial in the event of adverse price movements. If a Fund has insufficient cash to meet daily or intraday variation margin requirements, it might need to sell securities at a time when such sales are disadvantageous. Purchasers and sellers of futures contracts can enter into offsetting closing transactions, by selling or purchasing, respectively, an instrument identical to the instrument purchased or sold. Positions in futures contracts may be closed only on a futures exchange or board of trade that trades that contract. A Fund intends to enter into futures contracts only on exchanges or boards of trade where there appears to be a liquid secondary market. However, there can be no assurance that such a market will exist for a particular contract at a particular time. In such event, it may not be possible to close a futures contract. Although many futures contracts by their terms call for the actual delivery or acquisition of the underlying asset, in most cases the contractual obligation is fulfilled before the date of the contract without having to make or take delivery of the securities or currency. The offsetting of a contractual obligation is accomplished by buying (or selling, as appropriate) on a commodities exchange an identical futures contract calling for delivery in the same month. Such a transaction, which is effected through a member of an exchange, cancels the obligation to make or take delivery of the securities or currency. Since all transactions in the futures market are made, offset or fulfilled through a clearinghouse associated with the exchange on which the contracts are traded, a Fund will incur brokerage fees when it purchases or sells futures contracts. If an offsetting purchase price is less than the original sale price, a Fund realizes a capital gain, or if it is more, a Fund realizes a capital loss. Conversely, if an offsetting sell price is more than the original purchase price, a Fund realizes a capital gain, or if it is less, a Fund realizes a capital loss. The Funds have no current intent to accept physical delivery in connection with the settlement of futures contracts. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price; once that limit is reached, no trades may be made that day at a price beyond the limit. Daily price limits do not limit potential losses because prices could move to the daily limit for several consecutive days with little or no trading, thereby preventing liquidation of unfavorable positions. If a Fund were unable to liquidate a futures contract due to the absence of a liquid secondary market or the imposition of price limits, it could incur substantial losses. A Fund would continue to be subject to market risk with respect to the position. In addition, a Fund would continue to be required to make daily variation margin payments and might be required to maintain the position being hedged by the futures contract or option thereon or to maintain cash or securities in a segregated account. The ordinary spreads between prices in the cash and futures markets, due to differences in the nature of those markets, are subject to distortions. First, all participants in the futures market are subject to initial deposit and variation margin requirements. Rather than meeting additional variation margin deposit requirements, investors may close futures contracts through offsetting transactions that could distort the normal relationship between the cash and futures markets. Second, the liquidity of the futures market depends on participants entering into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity in the futures market could be reduced, thus producing distortion. Third, from the point of view of speculators, the margin deposit requirements in the futures market are less onerous than margin requirements in the securities market. Therefore, increased participation by speculators in the futures market may cause temporary price distortions. Due to the possibility of distortion, a correct forecast of securities price or currency exchange rate trends by the sub-advisor may still not result in a successful transaction. Futures contracts also entail other risks. Although the use of such contracts may benefit a Fund, if investment judgment about the general direction of, for example, an index is incorrect, a Fund’s overall performance would be worse than if it had not entered into any such contract. There are differences between the securities and futures markets that could result in an imperfect correlation between the markets, causing a given transaction not to achieve its objectives. The degree of imperfection of correlation depends on circumstances such as variations in speculative market demand for futures, including technical influences in futures trading, and differences between the financial instruments being hedged and the instruments underlying the standard contracts available for trading in such respects as interest rate levels, maturities, and creditworthiness of issuers. A decision as to whether, when and how to hedge involves the exercise of skill and judgment, and even a well-conceived hedge may be unsuccessful to some degree because of market behavior or unexpected interest rate trends. |
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Common Stock. Common stock generally takes the form of shares in a corporation which represent an ownership interest. It ranks below preferred stock and debt securities in claims for dividends and for assets of the company in a liquidation or bankruptcy. 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, currency exchange rates or industry regulation. Companies that elect to 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 may be exchange-traded or traded over-the-counter. OTC stock may be less liquid than exchange-traded stock.
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■
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Money Market Funds. A Fund can invest free cash balances in registered open-end investment companies regulated as money market funds under the Investment Company Act, to provide liquidity or for defensive purposes. A Fund would invest in money market funds rather than purchasing individual short-term investments. Although a 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 money market fund’s investments, increases in interest rates and deteriorations in the credit quality of the instruments the money market fund has purchased may reduce the money market fund’s yield and can cause the price of a money market security to decrease. In addition, a money market fund is subject to the risk that the value of an investment may be eroded over time by inflation. If the liquidity of a money market fund’s portfolio deteriorates below certain levels, the money market fund may suspend redemptions (i.e., impose a redemption gate) and thereby prevent a Fund from selling its investment in the money market fund, or impose a fee of up to 2% on amounts redeemed from the money market fund.
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Invest up to 20% of its total assets in debt securities that are investment grade at the time of purchase, including obligations of the U.S. Government, its agencies and instrumentalities, corporate debt securities, mortgage-backed securities, asset-backed securities, master-demand notes, Yankee and Eurodollar bank certificates of deposit, time deposits, bankers’ acceptances, commercial paper and other notes, inflation-indexed securities, and other debt securities. Investment grade securities 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 at least two rating organizations rating that security, such as S&P Global Ratings (“S&P Global”), Fitch, Inc. (“Fitch”) or Moody’s Investors Service, Inc. (“Moody’s”), or rated in one of the four highest rating categories by one rating organization if it is the only rating organization rating that security. Obligations rated in the fourth highest rating category are limited to 25% of each of these Funds’ debt allocations. These Funds, at the discretion of the Manager, or the applicable sub-advisor, may retain a debt security that has been downgraded below the initial investment criteria.
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1 | Engage in dollar rolls or purchase or sell securities on a when-issued or forward commitment basis. The purchase or sale of when-issued securities enables an investor to hedge against anticipated changes in interest rates and prices by locking in an attractive price or yield. The price of when-issued securities is fixed at the time the commitment to purchase or sell is made, but delivery and payment for the when-issued securities takes place at a later date, normally one to two months after the date of purchase. During the period between purchase and settlement, no payment is made by the purchaser to the issuer and no interest accrues to the purchaser. Such transactions therefore involve a risk of loss if the value of the security to be purchased declines prior to the settlement date or if the value of the security to be sold increases prior to the settlement date. A sale of a when-issued security also involves the risk that the other party will be unable to settle the transaction. Dollar rolls are a type of forward commitment transaction. Purchases and sales of securities on a forward commitment basis involve a commitment to purchase or sell securities with payment and delivery to take place at some future date, normally one to two months after the date of the transaction. As with when-issued securities, these transactions involve certain risks, but they also enable an investor to hedge against anticipated changes in interest rates and prices. Forward commitment transactions are executed for existing obligations, whereas in a when-issued transaction, the obligations have not yet been issued. |
2 | Invest in other investment companies (including affiliated investment companies) to the extent permitted by the Investment Company Act, or exemptive relief granted by the SEC. |
3 | Loan securities to broker-dealers or other institutional investors. Securities loans will not be made if, as a result, the aggregate amount of all outstanding securities loans by a Fund exceeds 33¹/3% of its total assets (including the market value of collateral received). For purposes of complying with a Fund’s investment policies and restrictions, collateral received in connection with securities loans is deemed an asset of a Fund to the extent required by law. |
4 | Enter into repurchase agreements. A repurchase agreement is an agreement under which securities are acquired by a Fund from a securities dealer or bank subject to resale at an agreed upon price on a later date. The acquiring Fund bears a risk of loss in the event that the other party to a repurchase agreement defaults on its obligations and a Fund is delayed or prevented from exercising its rights to dispose of the collateral securities. However, the Manager or the sub-advisor, as applicable, attempt to minimize this risk by entering into repurchase agreements only with financial institutions that are deemed to be of good financial standing. |
5 | Purchase securities sold in private placement offerings made in reliance on the “private placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act and resold to qualified institutional buyers under Rule 144A under the Securities Act. A Fund will not invest more than 15% of its net assets in Section 4(a)(2) securities and illiquid securities unless the Manager or the sub-advisor, as applicable, determines that any Section 4(a)(2) securities held by such Fund in excess of this level are liquid. |
1 | Purchase or sell real estate or real estate limited partnership interests, provided, however, that a Fund may invest in securities secured by real estate or interests therein or issued by companies which invest in real estate or interests therein when consistent with the other policies and limitations described in the Prospectus. |
2 | Invest in physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent a Fund from purchasing or selling foreign currency, options, futures contracts, options on futures contracts, forward contracts, swaps, caps, floors, collars, securities on a forward-commitment or delayed-delivery basis, and other similar financial instruments). |
3 | Engage in the business of underwriting securities issued by others, except to the extent that, in connection with the disposition of securities, a Fund may be deemed an underwriter under federal securities law. |
4 | Lend any security or make any other loan except: (i) as otherwise permitted under the Investment Company Act, (ii) pursuant to a rule, order or interpretation issued by the SEC or its staff, (iii) through the purchase of a portion of an issue of debt securities in accordance with a Fund’s investment objective, policies and limitations, or (iv) by engaging in repurchase agreements. |
5 | Issue any senior security except as otherwise permitted (i) under the Investment Company Act or (ii) pursuant to a rule, order or interpretation issued by the SEC or its staff. |
6 | Borrow money, except as otherwise permitted under the Investment Company Act or pursuant to a rule, order or interpretation issued by the SEC or its staff, including: (i) as a temporary measure, (ii) by entering into reverse repurchase agreements, and (iii) by lending portfolio securities as collateral. For purposes of this investment limitation, the purchase or sale of options, futures contracts, options on futures contracts, forward contracts, swaps, caps, floors, collars and other similar financial instruments shall not constitute borrowing. |
7 | Invest more than 5% of its total assets (taken at market value) in securities of any one issuer, other than obligations issued by the U.S. Government, its agencies and instrumentalities, or purchase more than 10% of the voting securities of any one issuer, with respect to 75% of a Fund’s total assets. |
8 | Invest more than 25% of its total assets in the securities of companies primarily engaged in any one industry provided that: (i) this limitation does not apply to obligations issued by U.S. agencies; and (ii) tax exempt municipalities and their agencies and authorities are not deemed to be industries. |
1 | Invest more than 15% of its net assets in illiquid securities, including time deposits and repurchase agreements that mature in more than seven days; or |
2 | Purchase securities on margin, except that (1) a Fund may obtain such short term credits necessary for the clearance of transactions, and (2) a Fund may make margin payments in connection with foreign currency, futures contracts, options, forward contracts, swaps, caps, floors, collars, securities purchased or sold on a forward-commitment or delayed-delivery basis or other financial instruments. |
1 | a complete list of holdings for each Fund on an annual and semi-annual basis in the reports to shareholders within sixty days of the end of each fiscal semi-annual period and in publicly available filings of Form N-CSR with the SEC within ten days thereafter (available on the SEC’s website at www.sec.gov); |
2 | a complete list of holdings for each Fund as of the end of each fiscal quarter in publicly available filings of Form N-PORT with the SEC within sixty days of the end of the fiscal quarter (available on the SEC’s website at www.sec.gov); |
3 | a complete list of holdings for the American Beacon Bridgeway Large Cap Growth Fund and American Beacon Bridgeway Large Cap Value Fund as of the end of each calendar quarter on the Funds’ website (www.americanbeaconfunds.com) approximately sixty days after the end of the calendar quarter; and |
4 | ten largest holdings for each Fund as of the end of each calendar quarter on the Funds’ website (www.americanbeaconfunds.com) and in sales materials approximately fifteen days after the end of the calendar quarter. |
Service Provider
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Service
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Holdings Access
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Manager
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Investment management and administrator
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Complete list on intraday basis with no lag
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Sub-Advisor
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Investment management
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Holdings under sub-advisor’s management on intraday basis with no lag
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State Street Bank and Trust Co. (“State Street”) and its designated foreign sub-custodians
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Securities lending agent for Funds that participate in securities lending, Funds’ custodian and foreign custody manager, sub-administrator, fund administration service provider, and foreign sub-custodian
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Complete list on daily basis with no lag
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PricewaterhouseCoopers LLP
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Funds’ independent registered public accounting firm
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Complete list on annual basis with no lag
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Abel Noser Solutions
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Trade execution cost analysis
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Complete list on daily basis with no lag
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Assets Advisers Management
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Model support for the sub-advisor
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Complete list on daily basis with no lag
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Automated Securities Clearance LLC
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Compliance monitoring
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Complete list on daily basis with one-day lag
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Baseline Analytics
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Performance and portfolio analytics reporting
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Complete list on daily basis with no lag
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Bloomberg Finance L.P.
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Performance and portfolio analytics reporting
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Complete list on daily basis with no lag
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Charles River Systems, Inc.
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Trade order management for sub-advisor
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Complete list on daily basis with no lag
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FactSet Research Systems, Inc.
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Performance and portfolio analytics reporting for the Manager and sub-advisor
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Complete list on daily basis with no lag
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Institutional Shareholder Services (“ISS”)
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Proxy voting research provider to sub-advisor, and share recall services provider to the Manager
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Complete list on daily basis with no lag
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Investment Technology Group, Inc.
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transaction cost analysis for sub-advisor
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Complete list on daily basis with no lag and more frequently when the Manager seeks advice with respect to certain holdings
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KPMG International
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Service provider to State Street
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Complete list on annual basis with lag
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SS&C (APX AOS Infrastructure)
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Portfolio management software for the sub-advisor
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Complete list on daily basis with no lag
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STP Investment Services
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Accounting and operations agent for the sub-advisor
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Complete list on daily basis with no lag
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The Yield Book Inc.
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Performance and portfolio analytics reporting
|
Complete list on monthly basis with four-day lag
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Virtu
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Transaction cost analysis for the sub-advisor
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Complete list on daily basis with no lag
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1 | Recipients of portfolio holdings information must agree in writing to keep the information confidential until it has been posted to the Funds’ website and not to trade based on the information; |
2 | Holdings may only be disclosed as of a month-end date; |
3 | No compensation may be paid to the Funds, the Manager or any other party in connection with the disclosure of information about portfolio securities; and |
4 | A member of the Manager’s Compliance staff must approve requests for nonpublic holdings information. |
Name and Year of Birth*
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Position and Length of Time Served on the American Beacon Funds and American Beacon Select Funds
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Position and Length of Time Served on the American Beacon Institutional Funds Trust
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Principal Occupation(s) and Directorships During Past 5 Years
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INTERESTED TRUSTEE
|
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Eugene J. Duffy
(1954)** |
Trustee since 2008
|
Trustee since 2017
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Managing Director, Global Investment Management Distribution, Mesirow Financial Administrative Corporation (2016-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
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NON-INTERESTED TRUSTEES
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Gilbert G. Alvarado
(1969) |
Trustee since 2015
|
Trustee since 2017
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Chief Financial Officer, The Conrad Prebys Foundation (2022-Present); President, SJVIIF, LLC, Impact Investment Fund (2018-2022); Executive Vice President/COO, Sierra Health Foundation (health conversion private foundation) (2022), Senior Vice President/CFO, Sierra Health Foundation (health conversion private foundation) (2006-2022); Executive Vice President/COO, Sierra Health Foundation: Center for Health Program Management (California public benefit corporation) (2022), Senior Vice President/CFO, Sierra Health Foundation: Center for Health Program Management (California public benefit corporation) (2012-2022); Director, Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
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Joseph B. Armes
(1962) |
Trustee since 2015
|
Trustee since 2017
|
Director, Switchback Energy Acquisition (2019-2021); Chairman & CEO, CSW Industrials f/k/a Capital Southwest Corporation (investment company) (2015-Present); President & CEO, JBA Investment Partners (family investment vehicle) (2010-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
|
Gerard J. Arpey
(1958) |
Trustee since 2012
|
Trustee since 2017
|
Partner, Emerald Creek Group (private equity firm) (2011-Present); Director, S.C. Johnson & Son, Inc. (privately held company) (2008-Present); Director, The Home Depot, Inc. (NYSE: HD) (2015-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
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Brenda A. Cline
(1960) |
Chair since 2019
Vice Chair 2018
Trustee since 2004
|
Chair since 2019
Vice Chair 2018
Trustee since 2017
|
Chief Financial Officer, Treasurer and Secretary, Kimbell Art Foundation (1993-Present); Director, Tyler Technologies, Inc. (public sector software solutions company) (2014-Present); Director, Range Resources Corporation (oil and natural gas company) (2015-Present); Trustee, Cushing Closed-End (2) and Open-End Funds (3) (2017-2021); Chair, American Beacon Sound Point Enhanced Income Fund (2019-2021), Vice Chair (2018), Trustee (2018-2021); Chair, American Beacon Apollo Total Return Fund (2019-2021), Vice Chair (2018), Trustee (2018-2021).
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Claudia A. Holz
(1957) |
Trustee since 2018
|
Trustee since 2018
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Independent Director, Blue Owl Capital Inc. (2021-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
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Douglas A. Lindgren
(1961) |
Trustee since 2018
|
Trustee since 2018
|
Director, JLL Income Property Trust (2022-Present); Consultant, Carne Financial Services (2017-2019); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
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Barbara J. McKenna
(1963) |
Trustee since 2012
|
Trustee since 2017
|
President and Managing Principal, Longfellow Investment Management Company (2005-Present, President since 2009); Member, External Diversity Council of the Federal Reserve Bank of Boston (2021-2023); Board Advisor, United States Tennis Association (2021-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
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* | The Board has adopted a retirement policy that requires Trustees to retire no later than the last day of the calendar year in which they reach the age of 75. |
** | Mr. Duffy is deemed to be an “interested person” of the Trust, as defined by the Investment Company Act of 1940, as amended, by virtue of his position with Mesirow |
Financial, Inc., a broker-dealer. |
INTERESTED TRUSTEE
|
|
American Beacon Fund
|
Duffy
|
American Beacon Bridgeway Large Cap Growth Fund
|
None
|
American Beacon Bridgeway Large Cap Value Fund
|
None
|
Aggregate Dollar Range of Equity Securities in all Trusts (27 Funds as of December 31, 2023)
|
$10,001 - $50,000
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NON-INTERESTED TRUSTEES
|
|||||||
American Beacon Fund
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Alvarado
|
Armes
|
Arpey
|
Cline
|
Holz
|
Lindgren
|
McKenna
|
American Beacon Bridgeway Large Cap Growth Fund
|
$10,001 - $50,000
|
None
|
None
|
None
|
None
|
None
|
$50,001 - $100,000
|
American Beacon Bridgeway Large Cap Value Fund
|
$10,001 - $50,000
|
None
|
None
|
None
|
None
|
None
|
$50,001 - $100,000
|
Aggregate Dollar Range of Equity Securities in all Trusts (27 Funds as of December 31, 2023)
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
The following table shows total compensation (excluding reimbursements) paid by the Trusts to each Trustee for the fiscal year ended December 31, 2023.
|
||
Name of Trustee
|
Aggregate Compensation from the Trust
|
Total Compensation from the Trusts
|
INTERESTED TRUSTEE
|
||
Eugene J. Duffy
|
$188,509
|
$200,000
|
NON-INTERESTED TRUSTEES
|
||
Gilbert G. Alvarado
|
$203,589
|
$216,000
|
Joseph B. Armes
|
$201,704
|
$214,000
|
Gerard J. Arpey
|
$199,819
|
$212,000
|
Brenda A. Cline1
|
$250,717
|
$266,000
|
Claudia A. Holz
|
$223,383
|
$237,000
|
Douglas A. Lindgren
|
$223,383
|
$237,000
|
Barbara J. McKenna
|
$203,589
|
$216,000
|
1 | Upon her retirement from the Board, Ms. Cline is eligible for flight benefits afforded to Eligible Trustees who served on the Boards prior to September 12, 2008 as described below. |
Name and Year of Birth
|
Position and Length of Time Served on the American Beacon Funds and American Beacon Select Funds
|
Position and Length of Time Served on the American Beacon Institutional Funds Trust
|
Principal Occupation(s) and Directorships During Past 5 Years
|
OFFICERS
|
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Rebecca L. Harris
(1966) |
President
Since May 2024 Vice President
2022-2024 |
President
Since May 2024 Vice President
2022-2024 |
President (2024-Present); Senior Vice President (2021-2024), Vice President (2011-2021), American Beacon Advisors, Inc.; President (2021-2024), Senior Vice President (2021-2024), Vice President (2017-2021), Resolute Investment Managers, Inc.; President (2024-Present); Senior Vice President (2021-2024), Vice President (2017-2021), Resolute Investment Services, Inc.; Vice President, Alpha Quant Advisors, LLC (2016-2020); Vice President (2018-2022), Director (2022) Continuous Capital, LLC; Director (2022-Present) National Investment Services of America, LLC; Director (2022-Present) RSW Investments Holdings LLC; Director (2022-Present) Shapiro Capital Management LLC; Director (2022-Present) SSI Investment Management LLC; Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021); Assistant Secretary, American Beacon Funds (2010 – 2022); Assistant Secretary, American Beacon Select Funds (2010 – 2022); Assistant Secretary, American Beacon Institutional Funds Trust (2017 – 2022).
|
Rosemary K. Behan
(1959) |
Vice President, Secretary and Chief Legal Officer
since 2006 |
Vice President, Secretary and Chief Legal Officer
since 2017 |
Senior Vice President (2021-Present), Vice President (2006-2021), Secretary and General Counsel (2006-Present), American Beacon Advisors, Inc.; Secretary, Resolute Investment Holdings, LLC (2015-Present); Secretary, Resolute Topco, Inc. (2015-Present); Secretary, Resolute Acquisition, Inc. (2015-Present); Senior Vice President (2021-Present), Vice President (2015-2021), Secretary and General Counsel (2015-Present), Resolute Investment Managers, Inc.; Secretary, Resolute Investment Distributors, Inc. (2017-Present); Senior Vice President (2021-Present), Vice President (2017-2021), Secretary and General Counsel (2017-Present), Resolute Investment Services, Inc.; Secretary, American Private Equity Management, LLC (2008-2024); Secretary and General Counsel, Alpha Quant Advisors, LLC (2016-2020); Vice President and Secretary, Continuous Capital, LLC (2018-2022); Secretary, Green Harvest Asset Management, LLC (2019-2021); Secretary, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2014-Present); Secretary, American Beacon Cayman TargetRisk Company, Ltd (2018-Present); Secretary, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Secretary, American Beacon Cayman Trend Company, Ltd. (2023-Present); Vice President, Secretary, and Chief Legal Officer, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, Secretary, and Chief Legal Officer, American Beacon Apollo Total Return Fund (2018-2021).
|
Paul B. Cavazos
(1969) |
Vice President
since 2016 |
Vice President
since 2017 |
Chief Investment Officer and Senior Vice President, American Beacon Advisors, Inc. (2016-Present); Vice President, American Private Equity Management, L.L.C. (2017-2024); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
|
Erica B. Duncan
(1970) |
Vice President
since 2011 |
Vice President
since 2017 |
Vice President, American Beacon Advisors, Inc. (2011-Present); Vice President, Resolute Investment Managers, Inc. (2018-Present); Vice President, Resolute Investment Services, Inc. (2018-Present); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
|
Name and Year of Birth
|
Position and Length of Time Served on the American Beacon Funds and American Beacon Select Funds
|
Position and Length of Time Served on the American Beacon Institutional Funds Trust
|
Principal Occupation(s) and Directorships During Past 5 Years
|
Terri L. McKinney
(1963) |
Vice President
since 2010 |
Vice President
since 2017 |
Senior Vice President, (2021-Present) Vice President, (2009-2021), American Beacon Advisors, Inc.; Senior Vice President (2021-Present), Vice President (2017-2021), Resolute Investment Managers, Inc.; Senior Vice President (2021-Present), Vice President (2018-2021), Resolute Investment Services, Inc.; Vice President, Alpha Quant Advisors, LLC (2016-2020); Vice President, Continuous Capital, LLC (2018-2022); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
|
Samuel J. Silver
(1963) |
Vice President
since 2011 |
Vice President
since 2017 |
Vice President (2011-Present), Chief Fixed Income Officer (2016-Present), American Beacon Advisors, Inc.; Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
|
Melinda G. Heika
(1961) |
Vice President
since 2021 |
Vice President
since 2021 |
Senior Vice President (2021-Present), Treasurer and CFO (2010-Present), American Beacon Advisors, Inc.; Treasurer, Resolute Topco, Inc. (2015-Present); Treasurer, Resolute Investment Holdings, LLC (2015-Present); Treasurer, Resolute Acquisition, Inc. (2015-Present); Senior Vice President (2021-Present), Treasurer and CFO (2017-Present), Resolute Investment Managers, Inc.; Senior Vice President (2021-Present), Treasurer and CFO (2017-Present), Resolute Investment Services, Inc.; Treasurer, American Private Equity Management, L.L.C. (2012-2024); Treasurer and CFO, Alpha Quant Advisors, LLC (2016-2020); Treasurer, Continuous Capital, LLC (2018-2022); Director (2014-Present), Vice President (2022-Present) and Treasurer (2014-2022), American Beacon Cayman Managed Futures Strategy Fund, Ltd.; Director and Vice President (2022-Present), and Treasurer (2018-2022), American Beacon Cayman TargetRisk Company, Ltd.; Director and Vice President, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Director and Vice President, American Beacon Cayman Trend Company, Ltd. (2023-Present); Principal Accounting Officer and Treasurer, American Beacon Funds (2010-2021); Principal Accounting Officer and Treasurer, American Beacon Select Funds (2010-2021); Principal Accounting Officer and Treasurer, American Beacon Institutional Funds Trust (2017-2021); Principal Accounting Officer and Treasurer (2018-2021), Vice President (2021), American Beacon Sound Point Enhanced Income Fund; Principal Accounting Officer and Treasurer (2018-2021), Vice President (2021), American Beacon Apollo Total Return Fund.
|
Gregory Stumm
(1981) |
Vice President
since 2022 |
Vice President
since 2022 |
Senior Vice President, American Beacon Advisors, Inc. (2022-Present); Senior Vice President, Resolute Investment Managers, Inc. (2022-Present); Senior Vice President, Resolute Investment Services, Inc. (2022-Present); President (2024-Present), Director and Senior Vice President (2022-2024), Resolute Investment Distributors, Inc.
|
Sonia L. Bates
(1956) |
Principal Accounting Officer and Treasurer
since 2021 |
Principal Accounting Officer and Treasurer
since 2021 |
Assistant Treasurer, American Beacon Advisors, Inc. (2023-Present); Vice President, Fund and Tax Reporting (2023-Present), Director, Fund and Tax Reporting (2011-2023), Resolute Investment Services, Inc; Assistant Treasurer, American Private Equity Management, L.L.C. (2012-2024); Treasurer, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2022-Present); Treasurer (2022-Present) and Assistant Treasurer (2018-2022), American Beacon Cayman TargetRisk Company, Ltd.; Treasurer, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Treasurer, American Beacon Cayman Trend Company, Ltd. (2023-Present); Assistant Treasurer (2018-2021), Principal Accounting Officer and Treasurer (2021), American Beacon Sound Point Enhanced Income Fund; Assistant Treasurer (2019-2021), Principal Accounting Officer and Treasurer (2021), American Beacon Apollo Total Return Fund; Assistant Treasurer, American Beacon Funds (2011-2021); Assistant Treasurer, American Beacon Select Funds (2011-2021); Assistant Treasurer, American Beacon Institutional Funds Trust (2017-2021).
|
Christina E. Sears
(1971) |
Chief Compliance Officer
since 2004 Assistant Secretary since 1999 |
Chief Compliance Officer and Assistant Secretary
since 2017 |
Chief Compliance Officer (2004-Present), Vice President (2019-Present), American Beacon Advisors, Inc.; Vice President, Resolute Investment Managers, Inc. (2017-Present); Vice President, Resolute Investment Distributors, Inc. (2017-Present); Vice President, Resolute Investment Services, Inc. (2019-Present); Chief Compliance Officer, American Private Equity Management, LLC (2012-2024); Chief Compliance Officer, Green Harvest Asset Management, LLC (2019-2021); Chief Compliance Officer, RSW Investments Holdings, LLC (2019-Present); Chief Compliance Officer (2016-2019), Vice President (2016-2020), Alpha Quant Advisors, LLC; Chief Compliance Officer (2018-2019), Vice President (2018-2022), Continuous Capital, LLC.; Chief Compliance Officer and Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Chief Compliance Officer and Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021).
|
Name and Year of Birth
|
Position and Length of Time Served on the American Beacon Funds and American Beacon Select Funds
|
Position and Length of Time Served on the American Beacon Institutional Funds Trust
|
Principal Occupation(s) and Directorships During Past 5 Years
|
Shelley L. Dyson
(1969) |
Assistant Treasurer
since 2021 |
Assistant Treasurer
since 2021 |
Fund Tax Director (2024-Present), Fund Tax Manager (2020-2024), Manager, Tax (2014-2020), Resolute Investment Services, Inc.; Assistant Treasurer, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2022-Present); Assistant Treasurer, American Beacon Cayman TargetRisk Company, Ltd (2022-Present); Assistant Treasurer, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Assistant Treasurer, American Beacon Cayman Trend Company, Ltd. (2023-Present); Assistant Treasurer, American Beacon Sound Point Enhanced Income Fund (2021); Assistant Treasurer, American Beacon Apollo Total Return Fund (2021).
|
Shelley D. Abrahams
(1974) |
Assistant Secretary
since 2008 |
Assistant Secretary
since 2017 |
Corporate Governance Manager (2023-Present), Senior Corporate Governance & Regulatory Specialist (2020-2023), Corporate Governance & Regulatory Specialist (2017-2020), Resolute Investment Services, Inc.; Assistant Secretary, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2022-Present); Assistant Secretary, American Beacon Cayman TargetRisk Company, Ltd (2022-Present); Assistant Secretary, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Assistant Secretary, American Beacon Cayman Trend Company, Ltd. (2023-Present); Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021).
|
Teresa A. Oxford
(1958) |
Assistant Secretary
since 2015 |
Assistant Secretary
since 2017 |
Deputy General Counsel (2024-Present), Assistant Secretary (2015-Present), Associate General Counsel (2015-2024), American Beacon Advisors, Inc.; Assistant Secretary (2018-2021) (2024-Present), Resolute Investment Distributors, Inc.; Deputy General Counsel (2024-Present), Assistant Secretary (2017-Present), Associate General Counsel (2017-2024), Resolute Investment Managers, Inc.; Deputy General Counsel (2024-Present), Assistant Secretary (2018-Present), Associate General Counsel (2018-2024), Resolute Investment Services, Inc.; Assistant Secretary (2016-2020), Alpha Quant Advisors, LLC; Assistant Secretary (2020-2022), Continuous Capital, LLC.; Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021).
|
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R6 Class
|
R5 CLASS
|
Investor CLASS
|
CHARLES SCHWAB & CO INC*
|
13.27%
|
30.67%
|
|||||
SPECIAL CUST A/C
|
|||||||
EXCLUSIVE BENEFIT OF CUSTOMERS
|
|||||||
ATTN MUTUAL FUNDS
|
|||||||
211 MAIN ST
|
|||||||
SAN FRANCISCO CA 94105-1901
|
|||||||
LPL FINANCIAL*
|
53.34%
|
29.16%
|
72.04%
|
||||
4707 EXECUTIVE DR
|
|||||||
SAN DIEGO CA 92121-3091
|
|||||||
MORGAN STANLEY SMITH BARNEY LLC*
|
8.74%
|
||||||
FOR THE EXCLUSIVE BENE OF ITS CUST
|
|||||||
1 NEW YORK PLZ FL 12
|
|||||||
NEW YORK NY 10004-1965
|
|||||||
NATIONAL FINANCIAL SERVICES LLC*
|
19.16%
|
||||||
FOR EXCLUSIVE BENEFIT OF
|
|||||||
OUR CUSTOMERS
|
|||||||
ATTN MUTUAL FUNDS DEPT 4TH FLOOR
|
|||||||
499 WASHINGTON BLVD
|
|||||||
JERSEY CITY NJ 07310-1995
|
|||||||
PERSHING LLC*
|
16.78%
|
10.36%
|
|||||
1 PERSHING PLZ
|
|||||||
JERSEY CITY NJ 07399-0001
|
|||||||
RAYMOND JAMES*
|
8.20%
|
58.90%
|
18.70%
|
||||
OMNIBUS FOR MUTUAL FUNDS
|
|||||||
ATTN COURTNEY WALLER
|
|||||||
880 CARILLON PKWY
|
|||||||
ST PETERSBURG FL 33716-1100
|
|||||||
VANGUARD BROKERAGE SERVICES*
|
6.54%
|
||||||
100 VANGUARD BLVD
|
|||||||
MALVERN PA 19355-2331
|
|||||||
VRSCO*
|
15.88%
|
||||||
FBO VTC CUST TTEE FBO
|
|||||||
COASTAL PLAINS COM MHMR CENT 401(A)
|
|||||||
2727-A ALLEN PARKWAY, 4-D1
|
|||||||
HOUSTON TX 77019-2107
|
|||||||
WELLS FARGO CLEARING SERVICES LLC*
|
8.27%
|
||||||
SPECIAL CUSTODY ACCT FOR THE
|
|||||||
EXCLUSIVE BENEFIT OF CUSTOMERS
|
|||||||
2801 MARKET ST
|
|||||||
SAINT LOUIS MO 63103-2523
|
|||||||
JPMORGAN CHASE BANK NA CUST
|
84.12%
|
||||||
FBO TIAA SEPARATE ACCOUNT VA3
|
|||||||
4 CHASE METROTECH CTR FL 4TH
|
|||||||
BROOKLYN NY 11245-0003
|
|||||||
VALIC*
|
43.24%
|
96.41%
|
|||||
2929 ALLEN PKWY STE A6-20
|
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R6 Class
|
R5 CLASS
|
Investor CLASS
|
HOUSTON TX 77019-7100
|
* | Denotes record owner of Fund shares only |
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R6 CLASS
|
R5 CLASS
|
Investor Class
|
AMERICAN ENTERPRISE INV SVCS*
|
12.56%
|
||||||
707 2ND AVE S
|
|||||||
MINNEAPOLIS MN 55402-2405
|
|||||||
CHARLES SCHWAB & CO INC*
|
12.81%
|
7.67%
|
31.88%
|
||||
SPECIAL CUST A/C
|
|||||||
EXCLUSIVE BENEFIT OF CUSTOMERS
|
|||||||
ATTN MUTUAL FUNDS
|
|||||||
211 MAIN ST
|
|||||||
SAN FRANCISCO CA 94105-1901
|
|||||||
CHARLES SCHWAB CO INC*
|
9.44%
|
||||||
ATTN MUTUAL FUND OPS
|
|||||||
101 MONTGOMERY ST
|
|||||||
SAN FRANCISCO CA 94104-4151
|
|||||||
LPL FINANCIAL*
|
11.26%
|
21.19%
|
37.63%
|
||||
4707 EXECUTIVE DR
|
|||||||
SAN DIEGO CA 92121-3091
|
|||||||
MERRILL LYNCH PIERCE FENNER &*
|
9.24%
|
||||||
SMITH INC (HOUSE ACCOUNT)
|
|||||||
THE AMERICAN BEACON FUNDS
|
|||||||
4800 DEER LAKE DR EAST
|
|||||||
JACKSONVILLE FL 32246-6484
|
|||||||
MORGAN STANLEY SMITH BARNEY LLC*
|
5.71%
|
||||||
FOR THE EXCLUSIVE BENE OF ITS CUST
|
|||||||
1 NEW YORK PLZ FL 12
|
|||||||
NEW YORK NY 10004-1965
|
|||||||
NATIONAL FINANCIAL SERVICES LLC*
|
6.69%
|
15.78%
|
10.88%
|
55.80%
|
21.86%
|
46.92%
|
|
FOR EXCLUSIVE BENEFIT OF OUR
|
|||||||
CUSTOMERS
|
|||||||
ATTN MUTUAL FUNDS DEPT 4TH FLOOR
|
|||||||
499 WASHINGTON BLVD
|
|||||||
JERSEY CITY NJ 07310-1995
|
|||||||
PERSHING LLC*
|
12.09%
|
11.63%
|
|||||
1 PERSHING PLZ
|
|||||||
JERSEY CITY NJ 07399-0001
|
|||||||
RAYMOND JAMES*
|
9.86%
|
7.35%
|
|||||
OMNIBUS FOR MUTUAL FUNDS
|
|||||||
ATTN COURTNEY WALLER
|
|||||||
880 CARILLON PKWY
|
|||||||
ST PETERSBURG FL 33716-1100
|
|||||||
UBS WM USA*
|
6.10%
|
8.30%
|
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R6 CLASS
|
R5 CLASS
|
Investor Class
|
OMNI ACCOUNT M/F
|
|||||||
SPEC CDY A/C EBOC UBSFSI
|
|||||||
1000 HARBOR BLVD
|
|||||||
WEEHAWKEN NJ 07086-6761
|
|||||||
WELLS FARGO CLEARING SERVICES LLC*
|
9.10%
|
23.24%
|
|||||
SPECIAL CUSTODY ACCT FOR THE
|
|||||||
EXCLUSIVE BENEFIT OF CUSTOMERS
|
|||||||
2801 MARKET ST
|
|||||||
SAINT LOUIS MO 63103-2523
|
|||||||
EMPOWER TRUST FBO*
|
6.83%
|
||||||
EMPLOYEE BENEFIT CLIENTS 401K
|
|||||||
8515 E ORCHARD RD 2T2
|
|||||||
GREENWOOD VILLAGE CO 80111-5002
|
|||||||
JOHN HANCOCK TRUST COMPANY LLC*
|
36.55%
|
||||||
200 BERKELEY ST STE 7
|
|||||||
BOSTON MA 02116-5038
|
|||||||
STATE STREET BANK TTEE CUSTODIAN
|
16.86%
|
||||||
CUST FBO ADP ACCESS 401K PLAN
|
|||||||
401(K) PLAN
|
|||||||
1 LINCOLN STREET
|
|||||||
BOSTON MA 02111-2901
|
* | Denotes record owner of Fund shares only |
Bridgeway Capital Management, LLC (“Bridgeway Capital”)
|
||
Controlling Person/Entity
|
Basis of Control
|
Nature of Controlling Person/Entity’s Business
|
Bridgeway Investments, Inc.
|
Sole Member
|
Financial Services
|
John Noland Ryan Montgomery
|
Officer
|
Financial Services
|
Linda Gail Giuffré
|
Officer
|
Financial Services
|
Von Devanthini Celestine
|
Officer
|
Financial Services
|
Richard Peter Cancelmo
|
Officer
|
Financial Services
|
Controlling Person/Entity
|
Basis of Control
|
Nature of Controlling Person/Entity’s Business
|
Resolute Topco, Inc.
|
Parent Company
|
Holding Company – Founded in 2015
|
First $5 billion
|
0.35%
|
Next $5 billion
|
0.325%
|
Next $10 billion
|
0.30%
|
Over $20 billion
|
0.275%
|
■
|
complying with reporting requirements;
|
■
|
corresponding with shareholders;
|
■
|
maintaining internal bookkeeping, accounting and auditing services and records;
|
■
|
supervising the provision of services to the Trust by third parties; and
|
■
|
administering the interfund lending facility and lines of credit, if applicable.
|
Management Fees Paid to American Beacon Advisors, Inc. (Gross)
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Bridgeway Large Cap Growth Fund
|
$818,565
|
$616,355
|
$580,905
|
American Beacon Bridgeway Large Cap Value Fund
|
$3,170,277
|
$2,276,213
|
$1,349,211
|
Sub-Advisor Fees (Gross)
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Bridgeway Large Cap Growth Fund
|
$927,517
|
$702,372
|
$653,294
|
0.40%
|
0.40%
|
0.40%
|
|
American Beacon Bridgeway Large Cap Value Fund
|
$2,857,031
|
$2,244,898
|
$1,446,767
|
0.33%
|
0.33%
|
0.38%
|
Management Fees (Waived)/Recouped
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Bridgeway Large Cap Growth Fund
|
$(98,840)
|
$(94,693)
|
$(105,946)
|
American Beacon Bridgeway Large Cap Value Fund
|
$0
|
$0
|
$0
|
Sub-Advisor Fees (Waived)
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Bridgeway Large Cap Growth Fund
|
$0
|
$0
|
$0
|
American Beacon Bridgeway Large Cap Value Fund
|
($42,997)
|
($2,285)
|
$0
|
A Class
|
|
Fund
|
Distribution Fee
|
American Beacon Bridgeway Large Cap Growth Fund
|
$3,254
|
American Beacon Bridgeway Large Cap Value Fund
|
$49,250
|
C Class
|
|
Fund
|
Distribution Fee
|
American Beacon Bridgeway Large Cap Growth Fund
|
$8,528
|
American Beacon Bridgeway Large Cap Value Fund
|
$184,594
|
A Class
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Bridgeway Large Cap Growth Fund
|
$1,784
|
$1,167
|
$1,110
|
American Beacon Bridgeway Large Cap Value Fund
|
$26,887
|
$19,269
|
$27,615
|
C Class
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Bridgeway Large Cap Growth Fund
|
$1,574
|
$885
|
$711
|
American Beacon Bridgeway Large Cap Value Fund
|
$33,471
|
$24,522
|
$18,775
|
Investor Class
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Bridgeway Large Cap Growth Fund
|
$315,364
|
$258,094
|
$268,888
|
American Beacon Bridgeway Large Cap Value Fund
|
$396,590
|
$266,735
|
$206,694
|
Fund
|
2021
|
2022
|
2023
|
American Beacon Bridgeway Large Cap Growth Fund
|
$2,546
|
$472
|
$36
|
American Beacon Bridgeway Large Cap Value Fund
|
$7,550
|
$48,125
|
$14,537
|
American Beacon Bridgeway Large Cap Growth Fund
|
American Beacon Bridgeway Large Cap Value Fund
|
|
Gross income earned by the fund from securities lending activities
|
$412
|
$208,391
|
Fees and/or compensation paid by the fund for securities lending activities and related services:
|
||
Fees paid to securities lending agent from a revenue split
|
$36
|
$14,537
|
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split
|
$0
|
$592
|
Administrative fees not included in revenue split
|
$0
|
$0
|
Indemnification fee not included in revenue split
|
$0
|
$0
|
Rebate (paid to borrower)
|
$0
|
$2,206
|
Other fees not included in revenue split (administrative and oversight functions provided by the Manager)
|
$36
|
$14,537
|
Aggregate fees/compensation paid by the fund for securities lending activities
|
$72
|
$31,872
|
Net income from securities lending activities
|
$340
|
$176,519
|
American Beacon Fund
|
Sales Charge Revenue
|
Deferred Sales Charge Revenue
|
|||
Fiscal Year
|
Amount Paid to Distributor
|
Amount Retained by Distributor
|
Amount Paid to Distributor
|
Amount Retained by Distributor
|
|
American Beacon Bridgeway Large Cap Growth Fund
|
2023
|
$1,610
|
$303
|
$0
|
$0
|
2022
|
$810
|
$202
|
$14
|
$0
|
|
2021
|
$2,705
|
$412
|
$0
|
$0
|
|
American Beacon Bridgeway Large Cap Value Fund
|
2023
|
$4,050
|
$607
|
$5
|
$0
|
2022
|
$10,559
|
$1,287
|
$218
|
$0
|
|
2021
|
$15,016
|
$1,225
|
$1,130
|
$0
|
Number of Other Accounts Managed and Assets by Account Type
|
Number of Accounts and Assets for Which Advisory Fee is Performance-Based
|
|||||
Name of Investment Advisor and Portfolio Manager
|
Registered Investment Companies
|
Other Pooled Investment Vehicles
|
Other Accounts
|
Registered Investment Companies
|
Other Pooled Investment Vehicles
|
Other Accounts
|
Bridgeway Capital Management, LLC
|
||||||
John Montgomery
|
6 ($2.84 bil)
|
1 ($16.3 mil)
|
11 ($197.9 mil)
|
2 ($734.2 mil)
|
None
|
11 ($60.4 mil)
|
Elena Khoziaeva
|
6 ($2.84 bil)
|
None
|
11 ($197.9 mil)
|
2 ($734.2 mil)
|
None
|
11 ($60.4 mil)
|
Michael Whipple
|
6 ($2.84 bil)
|
None
|
11 ($197.9 mil)
|
2 ($734.2 mil)
|
None
|
11 ($60.4 mil)
|
Name of Investment Advisor and Portfolio Manager
|
American Beacon Bridgeway Large Cap Growth Fund
|
American Beacon Bridgeway Large Cap Value Fund
|
Bridgeway Capital Management, LLC
|
||
John Montgomery
|
$500,001-$1,000,000
|
$100,001-$500,000
|
Elena Khoziaeva
|
$50,001-$100,000
|
$50,001-$100,000
|
Michael Whipple
|
$1-$10,000
|
$50,001-$100,000
|
American Beacon Fund
|
2021
|
2022
|
2023
|
American Beacon Bridgeway Large Cap Growth
|
$11,026
|
$13,021
|
$12,292
|
American Beacon Bridgeway Large Cap Value
|
$84,372
|
$83,913
|
$52,387
|
American Beacon Fund
|
Amounts Directed
|
Amounts Paid in Commissions
|
American Beacon Bridgeway Large Cap Growth Fund
|
$0
|
$0
|
American Beacon Bridgeway Large Cap Value Fund
|
$0
|
$0
|
Regular Broker-Dealers
|
American Beacon Fund
|
Aggregate Value of Securities (000s)
|
National Financial Services LLC
|
Bridgeway Large Cap Value
|
$4,137
|
Goldman Sachs Group
|
Bridgeway Large Cap Value
|
$4,629
|
Regular Broker-Dealers
|
American Beacon Fund
|
Aggregate Value of Securities (000s)
|
State Street Corp
|
Bridgeway Large Cap Value
|
$2,989
|
■
|
individual-type employee benefit plans, such as an IRA, individual 403(b) plan or single-participant Keogh-type plan;
|
■
|
business accounts solely controlled by you or your immediate family (for example, you own the entire business);
|
■
|
trust accounts established by you or your immediate family (for trusts with only one primary beneficiary, upon the trustor’s death the trust account may be aggregated with such beneficiary’s own accounts; for trusts with multiple primary beneficiaries, upon the trustor’s death the trustees of the trust may instruct the Funds’ transfer agent to establish separate trust accounts for each primary beneficiary; each primary beneficiary’s separate trust account may then be aggregated with such beneficiary’s own accounts);
|
■
|
endowments or foundations established and controlled by you or your immediate family; or
|
■
|
529 accounts, which will be aggregated at the account owner level (Class 529-E accounts may only be aggregated with an eligible employer plan).
|
■
|
for a single trust estate or fiduciary account, including employee benefit plans other than the individual-type employee benefit plans described above;
|
■
|
made for two or more employee benefit plans of a single employer or of affiliated employers as defined in the Investment Company Act, excluding the individual-type employee benefit plans described above;
|
■
|
for nonprofit, charitable or educational organizations, or any endowments or foundations established and controlled by such organizations, or any employer-sponsored retirement plans established for the benefit of the employees of such organizations, their endowments, or their foundations; or
|
■
|
for individually established participant accounts of a 403(b) plan that is treated similarly to an employer-sponsored plan for sales charge purposes (see “Purchases by certain 403(b) plans” under “Sales Charges” above), or made for two or more such 403(b) plans that are treated similarly to employer-sponsored plans for sales charge purposes, in each case of a single employer or affiliated employers as defined in the Investment Company Act. Purchases made for nominee or street name accounts (securities held in the name of a broker-dealer or another nominee such as a bank trust department instead of the customer) may not be aggregated with those made for other accounts and may not be aggregated with other nominee or street name accounts unless otherwise qualified as described above.
|
1 | current or retired trustees, and officers of the American Beacon Funds family, current or retired employees and directors of the Manager and its affiliated companies, certain family members and employees of the above persons, and trusts or plans primarily for such persons; |
2 | currently registered representatives and assistants directly employed by such representatives, retired registered representatives with respect to accounts established while active, or full-time employees (collectively, “Eligible Persons”) (and their spouses, and children, including children in step and adoptive relationships, sons-in-law and daughters-in-law, if the Eligible Persons or the spouses or children of the Eligible Persons are listed in |
the account registration with the spouse or parent) of broker-dealers who have sales agreements with the Distributor (or who clear transactions through such dealers), plans for the dealers, and plans that include as participants only the Eligible Persons, their spouses and/or children; |
3 | companies exchanging securities with the Funds through a merger, acquisition or exchange offer; |
4 | insurance company separate accounts; |
5 | accounts managed by the Manager, a sub-advisor to the Funds and their affiliated companies; |
6 | the Manager or a sub-advisor to the Funds and their affiliated companies; |
7 | an individual or entity with a substantial business relationship with, which may include the officers and employees of the Funds’ custodian or transfer agent, the Manager or a sub-advisor to the Funds and their affiliated companies, or an individual or entity related or relating to such individual or entity; |
8 | full-time employees of banks that have sales agreements with the Distributor, who are solely dedicated to directly supporting the sale of mutual funds; |
9 | directors, officers and employees of financial institutions that have a selling group agreement with the Distributor; |
10 | banks, broker-dealers and other financial institutions (including registered investment advisors and financial planners) that have entered into an agreement with the Distributor or one of its affiliates, purchasing shares on behalf of clients participating in a fund supermarket or in a wrap program, asset allocation program or other program in which the clients pay an asset-based fee; |
11 | clients of authorized dealers purchasing shares in fixed or flat fee brokerage accounts; |
12 | Employer-sponsored defined contribution - type plans, including 401(k) plans, 457 plans, employer sponsored 403(b) plans, profit-sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans, and IRA rollovers involving retirement plan assets invested in a Fund in the American Beacon Funds fund family; and |
13 | Employee benefit and retirement plans for the Manager and its affiliates. |
■
|
redemption proceeds from a non-retirement account (for example, a joint tenant account) used to purchase Fund shares in an IRA or other individual-type retirement account;
|
■
|
“required minimum distributions” (as described in Section 401(a)(9) of the Internal Revenue Code) from an IRA or other individual-type retirement account used to purchase Fund shares in a non-retirement account; and
|
■
|
death distributions paid to a beneficiary’s account that are used by the beneficiary to purchase Fund shares in a different account.
|
■
|
Any partial or complete redemption following death or “disability” (as defined in the Internal Revenue Code) of a shareholder (including one who owns the shares with his or her spouse as a joint tenant with rights of survivorship) from an account in which the deceased or disabled is named. The Manager or a Fund’s transfer agent may require documentation prior to waiver of the charge, including death certificates, physicians’ certificates, etc.
|
■
|
Redemptions from a systematic withdrawal plan. If the systematic withdrawal plan is based on a fixed dollar amount or number of shares, systematic withdrawal redemptions are limited to no more than 10% of your account value or number of shares per year, as of the date the Manager or a Fund’s transfer agent receives your request. If the systematic withdrawal plan is based on a fixed percentage of your account value, each redemption is limited to an amount that would not exceed 10% of your annual account value at the time of withdrawal.
|
■
|
Redemptions from retirement plans qualified under Section 401 of the Internal Revenue Code. The CDSC will be waived for benefit payments made by American Beacon Funds directly to plan participants. Benefit payments include, but are not limited to, payments resulting from death, “disability,” “retirement,” “separation from service” (each as defined in the Internal Revenue Code), “required minimum distributions” (as described in Section 401(a)(9) of the Internal Revenue Code), in-service distributions, hardships, loans and qualified domestic relations orders. The CDSC waiver will not apply in the event of termination of the plan or transfer of the plan to another financial institution.
|
■
|
Redemptions that are required minimum distributions from a traditional IRA as required by the Internal Revenue Service.
|
■
|
Involuntary redemptions as a result of your account not meeting the minimum balance requirements, the termination and liquidation of the Fund, or other actions by the Fund.
|
■
|
Distributions from accounts for which the broker-dealer of record has entered into a written agreement with the Distributor (or Manager) allowing this waiver.
|
■
|
To return excess contributions made to a retirement plan.
|
■
|
To return contributions made due to a mistake of fact.
|
■
|
Derive at least 90% of its gross income each taxable year from (1) dividends, interest, payments with respect to securities loans and gains from the sale or other disposition of securities or foreign currencies, or other income, including gains from options, futures or forward contracts, derived with respect to its business of investing in securities or those currencies (“Qualifying Income”) and (2) net income derived from an interest in a “qualified publicly traded partnership” (“QPTP”) (“Gross Income Requirement”). A QPTP is a “publicly traded partnership” (that is, a partnership the interests in which are “traded on an established securities market” or “readily tradable on a secondary market (or the substantial equivalent thereof)” (a “PTP”)) that meets certain qualifying income requirements other than a partnership at least 90% of the gross income of which is Qualifying Income;
|
■
|
Diversify its investments so that, at the close of each quarter of its taxable year, (1) at least 50% of the value of its total assets is represented by cash and cash items, Government securities, securities of other RICs, and other securities, with those other securities limited, in respect of any one issuer, to an amount that does not exceed 5% of the value of the Fund’s total assets and that does not represent more than 10% of the issuer’s outstanding voting securities (equity securities of QPTPs being considered voting securities for these purposes), and (2) not more than 25% of the value of its total assets is invested in (a) the securities (other than Government securities or securities of other RICs) of any one issuer, (b) the securities (other than securities of other RICs) of two or more issuers the Fund controls (by owning 20% or more of their voting power) that are determined to be engaged in the same, similar or related trades or businesses, or (c) the securities of one or more QPTPs (“Diversification Requirements”); and
|
■
|
Distribute annually to its shareholders at least the sum of 90% of its investment company taxable income (generally, net investment income, the excess (if any) of net short-term capital gain over net long-term capital loss, and net gains and losses (if any) from certain foreign currency transactions, all determined without regard to any deduction for dividends paid) and 90% of its net exempt interest income (“Distribution Requirement”).
|
1 | BCM has been instructed to override the ISS vote recommendation by a client. Evidence of client direction will be maintained by BCM and communicated to ISS by a member of BCM’s Client Service and Marketing Team (“CSM”); or |
2 | ISS’ policy recommendation is “REFER” which means the proxy is referred to BCM. In this case BCM will independently determine how a particular issue should be voted. In these instances, BCM’s Investment Management Team (“IMT”) will document the reason(s) used in determining a vote and CSM will communicate BCM’s voting instruction to ISS. In cases where IMT determines there is insufficient data or the proxy vote at issue is too complex to make a vote determination, IMT will consult with the Responsible Investment Committee and/or the CCO on how best to handle the particular proxy. |
A. Overview
|
Rule 14Ad-1 under the Securities Exchange Act of 1934 (“Exchange Act”) requires investment advisers that are required to file Form 13F to report annually on Form N-PX each Say-On-Pay Vote, as defined below, over which they exercised voting power.
|
“Say-on-Pay Votes” are proxy votes on executive compensation which are subject to Section 14A(a)-(b) of the Exchange Act. Examples of Say-on-Pay Votes are votes related to approval of executive compensation, frequency of executive compensation approval votes and golden parachute compensation to executives.
|
B. Filing Requirements
|
BCM files Form N-PX by August 31 of each year for the most recent 12 -month period ending June 30. BCM’s first Form N-PX filing required by Rule 14Ad-1 is due August 31, 2024 for the period July 1, 2023 – June 30, 2024.
|
C. Filing Procedures
|
A member of the Client Service and Marketing team coordinates the annual Form N-PX filing.
|
A. Proxy statements received regarding client securities. Electronic statements, such as those maintained on EDGAR or by a proxy voting service are acceptable;
|
B. Records of proxy votes cast on behalf of each client for a period of five years.
|
A. Documentation to support the instruction received from a client to vote proxies against the ISS recommendation,
|
B. Records of clients’ written or oral requests for proxy voting information, including a record of the information provided by BCM,
|
C. Historical records of votes cast on behalf of each client,
|
D. Current and historical proxy voting policies and procedures; and
|
E. Each Form N-PX filed by BCM.
|
A. The competency, capacity and adequacy of ISS’ oversight structure. technology and personnel performing services on behalf of BCM and whether any material changes to ISS’ business may impact BCM’s conclusions;
|
B. ISS’ methodology for formulating its proxy voting recommendations and ensuring recommendations are in accordance with the Guidelines and based on current and accurate information. This analysis shall consider, among other things:
|
1. Third party information ISS relies on as a basis for its voting recommendations;
|
2. ISS’ process for seeking input from issuers and its clients regarding its proxy voting policies and methodologies and whether it updates its policies and methodologies, as appropriate, based on feedback received;
|
3. When and how ISS typically engages with issuers and third parties when determining its recommendations to ensure it has accurate information and to receive feedback on recommendations; and
|
4. The potential impact of factual errors, incomplete information and methodology weaknesses on ISS’ voting recommendation and ISS’ process for identifying and correcting these issues.
|
C. Policies and procedures related to the identification, management, disclosure of conflicts of interest impacting services provided to BCM; and
|
D. Changes in ISS’ business and specific conflicts of interest in order to reasonably determine whether ISS’ conflicts of interest may materially and adversely affect BCM’s clients and, if so, whether any action should be taken as a result.
|
A. BCM will disclose in its Form ADV Part 2A that clients may contact BCM in order to obtain information on how BCM voted such client’s proxies, and to request a copy of this policy. If a client requests this information, the Director of Client Service will prepare a written response to the client that lists, with respect to each voted proxy that the client has inquired about: (1) the name of the issuer, (2) the proposal voted upon and (3) how BCM voted the client’s proxy.
|
B. A concise summary of this Proxy Voting Policy will be included in the BCM’s Form ADV Part 2A, and will be updated whenever this policy is updated.
|
ADRs
|
American Depositary Receipts
|
Advisers Act
|
Investment Advisers Act of 1940, as amended
|
American Beacon or the Manager
|
American Beacon Advisors, Inc.
|
Beacon Funds
|
American Beacon Funds
|
Board
|
Board of Trustees
|
Capital Gains Distributions
|
Distributions of realized net capital gains
|
CCO
|
Chief Compliance Officer
|
CDSC
|
Contingent Deferred Sales Charge
|
CFTC
|
Commodity Futures Trading Commission
|
Covered Shares
|
Fund shares that the shareholder acquired or acquires after 2011
|
CPO
|
Commodity Pool Operator
|
Denial of Services
|
A cybersecurity incident that results in customers or employees being unable to access electronic systems
|
Dividends
|
Distributions from a Fund’s net investment income
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
DRD
|
Dividends-received deduction
|
ESG
|
Environmental, Social, and/or Governance
|
ETF
|
Exchange-Traded Fund
|
ETN
|
Exchange-Traded Note
|
EU
|
European Union
|
FINRA
|
Financial Industry Regulatory Authority, Inc.
|
Holdings Policy
|
Policies and Procedures for Disclosure of Portfolio Holdings
|
Internal Revenue Code
|
Internal Revenue Code of 1986, as amended
|
IPO
|
Initial Public Offering
|
IRA
|
Individual Retirement Account
|
IRS
|
Internal Revenue Service
|
ISS
|
Institutional Shareholder Services
|
LOI
|
Letter of Intent
|
Management Agreement
|
A Fund’s Management Agreement with the Manager
|
Manager
|
American Beacon Advisors, Inc.
|
MLP
|
Master Limited Partnership
|
Moody’s
|
Moody’s Investors Service, Inc.
|
NAV
|
Net asset value
|
NYSE
|
New York Stock Exchange
|
OID
|
Original Issue Discount
|
OTC
|
Over-the-Counter
|
Other Distributions
|
Distributions of net gains from foreign currency transactions
|
Proxy Policy
|
Proxy Voting Policy and Procedures
|
QDI
|
Qualified Dividend Income
|
REIT
|
Real Estate Investment Trust
|
REMICs
|
Real Estate Mortgage Investment Conduits
|
RIC
|
Regulated Investment Company
|
S&P Global
|
S&P Global Ratings
|
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 Co.
|
STRIPS
|
Separately traded registered interest and principal securities
|
Trust
|
American Beacon Funds
|
Trustee Retirement Plan
|
Trustee Retirement and Trustee Emeritus and Retirement Plan
|
UK
|
United Kingdom
|
Voluntary Action
|
When a Fund voluntarily participates in corporate actions (for example, rights offerings, conversion privileges, exchange offers, credit event settlements, etc.) where the issuer or counterparty offers securities or instruments to holders or counterparties, such as the Fund, and the acquisition is determined to be beneficial to Fund shareholders.
|
American Beacon
|
|
Share Class
|
|||||
|
A
|
C
|
Y
|
R6
|
R5
|
Investor
|
American Beacon Stephens Mid-Cap Growth Fund
|
SMFAX
|
SMFCX
|
SMFYX
|
SFMRX
|
SFMIX
|
STMGX
|
American Beacon Stephens Small Cap Growth Fund
|
SPWAX
|
SPWCX
|
SPWYX
|
STSRX
|
STSIX
|
STSGX
|
Back Cover
|
|
American Beacon
Stephens Mid-Cap Growth 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 A Class, C Class, Y Class, R6 Class, R5 Class, and Investor Class shares, as applicable, 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.
|
■
|
U.S. Dollar-Denominated Foreign Stocks Traded on U.S. Exchanges Risk. Foreign (non-U.S.) companies that list their stocks on U.S. exchanges may be exempt from certain accounting and corporate governance standards that apply to U.S. companies that list on the same exchange. Performance of these stocks can be impacted by political and financial instability in the home country of a particular foreign company, and delisting of these stocks could impact the Fund‘s ability to transact in such securities and could significantly impact their liquidity and market price.
|
■
|
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 might increase or start decreasing, the timing, frequency or magnitude of any such changes in interest rates, or when such changes might stop or reverse course. 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 changes in interest rates could lead to significant 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.
|
■
|
Information Technology Sector Risk. The Information Technology sector includes companies engaged in software and services, technology hardware and storage peripherals, electronic equipment and components, and semiconductors and semiconductor equipment. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Information technology companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base or achieve general market acceptance for their products could have a material adverse effect on a company’s business. Companies in the Information Technology sector also may be subject to increased government scrutiny or adverse government or regulatory action. Additionally, companies in the Information Technology sector are heavily dependent on intellectual property and the loss of patent, copyright or trademark protections may adversely affect the profitability of these companies. The market prices of information technology-related securities tend to exhibit a greater degree of market risk and sharp price fluctuations than other types of securities. These securities may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices.
|
|
|
|
|
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
|
|
%
|
%
|
%
|
* | 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 9.17%. |
|
|
1 Year
|
5 Years
|
10 Years
|
Index (Reflects no deduction for fees, expenses, or taxes)
|
|
|
|
|
Russell Midcap® Growth Index
|
|
%
|
%
|
%
|
Stephens Investment Management Group, LLC
|
Ryan E. Crane
Chief Investment Officer Since Fund Inception (2006)* Kelly Ranucci
Senior Portfolio Manager Since 2011** |
John M. Thornton
Senior Portfolio Manager Since Fund Inception (2006)* Samuel M. Chase III
Senior Portfolio Manager Since 2011** John Keller
Portfolio Manager Since January 2019 |
* | Predecessor Fund inception date. |
** | Includes Predecessor Fund. |
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
|
American Beacon
Stephens Small Cap Growth 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 Expenses2
|
%
|
%
|
%
|
%
|
%
|
%
|
Acquired Fund Fees and Expenses
|
%
|
%
|
%
|
%
|
%
|
%
|
Total Annual Fund Operating Expenses3
|
%
|
%
|
%
|
%
|
%
|
%
|
Fee Waiver and/or expense reimbursement4
|
(
%)
|
(
%)
|
(
%)
|
(
%)
|
(
%)
|
(
%)
|
Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement
|
%
|
%
|
%
|
%
|
%
|
%
|
1 |
2 | During the fiscal year ended December 31, 2023, the Fund paid amounts to American Beacon Advisors, Inc. (the “Manager”) that were previously waived and/or reimbursed by the Manager under a contractual fee waiver/expense reimbursement agreement for the Fund’s Investor Class shares in the amount of 0.03%. |
3 |
4 | The Manager has contractually agreed to waive fees and/or reimburse expenses of the Fund’s A Class, C Class, Y Class, R6 Class, R5 Class, and Investor Class shares, as applicable, 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.
|
■
|
Master Limited Partnerships (“MLPs”) Risk. Investing in MLPs involves certain risks related to investing in the underlying assets of the MLPs and risks associated with pooled investment vehicles. Investments held by MLPs may be relatively illiquid, limiting the MLPs’ ability to change their portfolios promptly in response to changes in economic or other conditions. MLPs may have limited financial resources, their securities may trade infrequently and in limited volume, they may be difficult to value, and they may be subject to more abrupt or erratic price movements than securities of larger or more broadly based companies. Holders of units in MLPs have more limited rights to vote on matters affecting the partnership and may be required to sell their common units at an undesirable time or price. The Fund’s investments in MLPs will be limited to no more than 25% of its assets in order for the Fund to meet the requirements necessary to qualify as a “regulated investment company” under the Internal Revenue Code of 1986, as amended (“Internal Revenue Code”).
|
■
|
U.S. Dollar-Denominated Foreign Stocks Traded on U.S. Exchanges Risk. Foreign (non-U.S.) companies that list their stocks on U.S. exchanges may be exempt from certain accounting and corporate governance standards that apply to U.S. companies that list on the same exchange. Performance of these stocks can be impacted by political and financial instability in the home country of a particular foreign company, and delisting of these stocks could impact the Fund‘s ability to transact in such securities and could significantly impact their liquidity and market price.
|
■
|
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 might increase or start decreasing, the timing, frequency or magnitude of any such changes in interest rates, or when such changes might stop or reverse course. 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 changes in interest rates could lead to significant 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.
|
■
|
Information Technology Sector Risk. The Information Technology sector includes companies engaged in software and services, technology hardware and storage peripherals, electronic equipment and components, and semiconductors and semiconductor equipment. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Information technology companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base or achieve general market acceptance for their products could have a material adverse effect on a company’s business. Companies in the Information Technology sector also may be subject to increased government scrutiny or adverse government or regulatory action. Additionally, companies in the Information Technology sector are heavily dependent on intellectual property and the loss of patent, copyright or trademark protections may adversely affect the profitability of these companies. The market prices of information technology-related securities tend to exhibit a greater degree of market risk and sharp price fluctuations than other types of securities. These securities may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices.
|
|
|
|
|
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
|
|
%
|
%
|
%
|
* | Performance for the 5 Years and 10 Years period has been adjusted to align with the Fund’s audited Financial Highlights for the fiscal year ended December 31, 2021, which reflect the correction of an expense accrual. If performance had been calculated based on the net asset value (“NAV”) per share as of December 31, 2021 without the expense accrual adjustment, performance would have been higher. |
** | 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 6.24%. |
|
|
1 Year
|
5 Years
|
10 Years
|
Index (Reflects no deduction for fees, expenses, or taxes)
|
|
|
|
|
Russell 2000® Growth Index
|
|
%
|
%
|
%
|
Stephens Investment Management Group, LLC
|
Ryan E. Crane
Chief Investment Officer Since Fund Inception (2005)** Kelly Ranucci
Senior Portfolio Manager Since 2011* John Keller
Portfolio Manager Since 2019 |
John M. Thornton
Senior Portfolio Manager Since Fund Inception (2005)** Samuel M. Chase III
Senior Portfolio Manager Since 2011* |
* | Includes Predecessor Fund. |
** | Predecessor Fund inception date. |
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 Stephens Mid-Cap Growth Fund’s investment objective is long-term growth of capital.
|
■
|
The American Beacon Stephens Small Cap Growth Fund’s investment objective is long-term growth of capital.
|
■
|
The American Beacon Stephens Mid-Cap Growth Fund has a non-fundamental policy to invest under normal circumstances at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of medium capitalization companies.
|
■
|
The American Beacon Stephens Small Cap Growth Fund has a non-fundamental policy to invest under normal circumstances at least 80% of its net assets (plus any borrowings for investment purposes), in equity securities of small capitalization companies.
|
■
|
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.
|
■
|
Stephens Investment Management Group, LLC
|
■
|
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.
|
■
|
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.
|
■
|
Master Limited Partnerships. MLPs are limited partnerships (or similar entities) in which the ownership units (e.g., limited partnership interests) are publicly traded and units are freely traded on a securities exchange or in the over-the-counter market. The majority of MLPs operate in oil and gas related
|
businesses, including energy processing and distribution. As partnerships, MLPs may be subject to less regulation (and less protection for investors) under state laws than corporations. An MLP is an investment that combines the tax benefits of a limited partnership with the liquidity of publicly traded securities. Many MLPs are pass-through entities that generally are taxed at the security holder level and generally are not subject to federal or state income tax at the partnership level. Annual income, gains, losses, deductions and credits of an MLP pass through directly to its security holders. Distributions from an MLP may consist in part of a return of capital. A Fund’s investments in MLPs will be limited by tax considerations. Generally, an MLP is operated under the supervision of one or more managing general partners. Limited partners are not involved in the day-to-day management of the MLP.
|
■
|
U.S. Dollar-Denominated Foreign Stocks Traded on U.S. Exchanges. Non-U.S. companies may list their common stock on U.S. exchanges subject to meeting the relevant exchange’s listing requirements and U.S. regulatory requirements applicable to non-U.S. companies that list their shares in the U.S.
|
■
|
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 Stephens Mid-Cap Growth Fund
|
American Beacon Stephens Small Cap Growth Fund
|
Cybersecurity and Operational Risk
|
X
|
X
|
Equity Investments Risk
|
X
|
X
|
|
X
|
X
|
|
|
X
|
|
X
|
X
|
Foreign Exposure Risk
|
X
|
X
|
Growth Companies Risk
|
X
|
X
|
Investment Risk
|
X
|
X
|
Issuer Risk
|
X
|
X
|
Large-Capitalization Companies Risk
|
X
|
|
Market Risk
|
X
|
X
|
|
X
|
X
|
Micro-Capitalization Companies Risk
|
|
X
|
Mid-Capitalization Companies Risk
|
X
|
X
|
Other Investment Companies Risk
|
X
|
X
|
|
X
|
X
|
Redemption Risk
|
X
|
X
|
Sector Risk
|
X
|
X
|
|
X
|
X
|
Securities Lending Risk
|
X
|
X
|
Securities Selection Risk
|
X
|
X
|
Small Capitalization Companies Risk
|
X
|
X
|
■
|
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.
|
■
|
Master Limited Partnerships (“MLPs”) Risk. Investing in MLPs involves certain risks related to investing in the underlying assets of the MLPs and risks associated with pooled investment vehicles. Investments held by MLPs may be relatively illiquid, limiting the MLPs’ ability to change their portfolios promptly in response to changes in economic or other conditions. MLPs may have limited financial resources, their securities may trade infrequently and in limited volume, they may be difficult to value, and they may be subject to more abrupt or erratic price movements than securities of larger or more broadly based companies. Holders of units in MLPs have more limited rights to vote on matters affecting the partnership and may be required to sell their common units at an undesirable time or price. A Fund invests as a limited partner, and normally would not be liable for the debts of an MLP beyond the amounts a Fund has contributed but it would not be shielded to the same extent that a shareholder of a corporation would be. In certain instances, creditors of an MLP would have the right to seek a return of capital that had been distributed to a limited partner. The right of an MLP’s creditors would continue even after a Fund had sold its investment in the partnership. MLPs typically invest in real estate, oil and gas equipment leasing assets, but they also finance entertainment, research and development, and other projects. A Fund’s investments in MLPs will be limited to no more than 25% of its assets in order for a Fund to meet the requirements necessary to qualify as a “regulated investment company” under the Internal Revenue Code of 1986, as amended. Distributions from an MLP may consist in part of a return of the amount originally invested, which would not be taxable to the extent the distributions do not exceed the investor’s adjusted basis on its MLP interest. These reductions in a Fund’s adjusted tax basis in the MLP securities will increase the amount of gain (or decrease the amount of loss) recognized by a Fund on a subsequent sale of the securities. MLPs holding credit-related investments are subject to interest rate risk and the risk of default on payment obligations by debt issuers. MLPs that concentrate in a particular industry or a particular geographic region are subject to risks associated with such industry or region.
|
■
|
U.S. Dollar-Denominated Foreign Stocks Traded on U.S. Exchanges Risk. Foreign (non-U.S.) companies that list their stocks on U.S. exchanges may be exempt from certain accounting and corporate governance standards that apply to U.S. companies that list on the same exchange. Foreign stocks traded on U.S. exchanges transact and settle in U.S. dollars, but performance of these stocks can be impacted by political and financial instability in the home country of a particular foreign company. To the extent a Fund invests in U.S. dollar-denominated foreign stocks traded on U.S. exchanges, delisting of these stocks could impact a Fund‘s ability to transact in such securities and could significantly impact their liquidity and market price. In addition, a Fund would have to seek other markets in which to transact in such securities which would also increase a Fund’s costs.
|
■
|
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 might increase or start decreasing, the timing, frequency or magnitude of any such changes in interest rates, or when such changes might stop or reverse course. 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 changes in interest rates could lead to significant 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.
|
■
|
Information Technology Sector Risk. The Information Technology sector includes companies engaged in internet software and services, technology hardware and storage peripherals, electronic equipment instruments and components, and semiconductors and semiconductor equipment. Information Technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Information Technology companies may have limited product lines, markets, financial resources or personnel. The products of Information Technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base or achieve general market acceptance for their products could have a material adverse effect on a company’s business. Companies in the Information Technology sector may be subject to increased government scrutiny or adverse government or regulatory action. Additionally, companies in the Information Technology sector are heavily dependent on intellectual property and the loss of patent, copyright and trademark protections may adversely affect the profitability of these companies. The market prices of Information Technology-related securities tend to exhibit a greater degree of market risk and sharp price fluctuations than other types of securities. These securities may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices.
|
American Beacon Fund
|
Aggregate Management and Investment Advisory Fees
|
American Beacon Stephens Mid-Cap Growth Fund
|
0.80%
|
American Beacon Stephens Small Cap Growth Fund
|
0.88%
|
American Beacon Fund
|
A Class
|
C Class
|
Y Class
|
R6 Class
|
R5 Class
|
Investor Class
|
American Beacon Stephens Mid-Cap Growth Fund
|
1.20%
|
1.94%
|
0.95%
|
0.88%
|
0.89%
|
1.15%
|
American Beacon Stephens Small Cap Growth Fund
|
1.28%
|
2.06%
|
1.05%
|
0.96%
|
0.99%
|
1.27%
|
■
|
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.” |
■
|
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
|
R5
|
$250,000
|
$50
|
None
|
R6
|
None
|
$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
|
R5
|
$250,000
|
$50
|
None
|
R6
|
None
|
$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
|
Other Distributions Paid
|
American Beacon Stephens Mid-Cap Growth Fund
|
Annually
|
Annually
|
American Beacon Stephens Small Cap Growth Fund
|
Annually
|
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
|
Type of Transaction
|
Federal Tax Status
|
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
|
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 Stephens Mid-Cap Growth FundSM
|
|||||
|
A Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$22.34
|
$32.22
|
$30.92
|
$22.43
|
$17.71
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment (loss)
|
(0.42
)
|
(0.04
)
|
(0.80
)
|
(0.49
)
|
(1.94
)
|
Net gains (losses) on investments (both realized and unrealized)
|
6.04
|
(9.07
)
|
4.53
|
9.43
|
7.47
|
Total income (loss) from investment operations
|
5.62
|
(9.11
)
|
3.73
|
8.94
|
5.53
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
-
|
(0.77
)
|
(2.43
)
|
(0.45
)
|
(0.81
)
|
Total distributions
|
-
|
(0.77
)
|
(2.43
)
|
(0.45
)
|
(0.81
)
|
Net asset value, end of period
|
$27.96
|
$22.34
|
$32.22
|
$30.92
|
$22.43
|
Total returnA
|
25.16
%
|
(28.27
)%
|
12.17
%
|
39.85
%
|
31.22
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$6,187,739
|
$5,243,837
|
$7,400,729
|
$8,166,847
|
$6,467,469
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.40
%
|
1.22
%
|
1.14
%
|
1.24
%
|
1.27
%
|
Expenses, net of reimbursements and/or recoupments
|
1.21
%
B
|
1.22
%
|
1.13
%
|
1.23
%
C
|
1.29
%
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(0.76
)%
|
(0.55
)%
|
(0.75
)%
|
(0.86
)%
|
(0.84
)%
|
Net investment (loss), net of reimbursements and/or recoupments
|
(0.57
)%
|
(0.55
)%
|
(0.74
)%
|
(0.85
)%
|
(0.86
)%
|
Portfolio turnover rate
|
16
%
|
20
%
|
28
%
|
22
%
|
15
%
|
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.
|
B
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to the change in the contractual expense caps on May 1, 2023.
|
C
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
American Beacon Stephens Mid-Cap Growth FundSM
|
|||||
|
C Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$20.01
|
$29.19
|
$28.44
|
$20.81
|
$16.59
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment (loss)
|
(0.28
)
|
(0.83
)
|
(0.63
)
|
(0.94
)
|
(0.25
)
|
Net gains (losses) on investments (both realized and unrealized)
|
5.13
|
(7.58
)
|
3.81
|
9.02
|
5.28
|
Total income (loss) from investment operations
|
4.85
|
(8.41
)
|
3.18
|
8.08
|
5.03
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
-
|
(0.77
)
|
(2.43
)
|
(0.45
)
|
(0.81
)
|
Total distributions
|
-
|
(0.77
)
|
(2.43
)
|
(0.45
)
|
(0.81
)
|
Net asset value, end of period
|
$24.86
|
$20.01
|
$29.19
|
$28.44
|
$20.81
|
Total returnA
|
24.24
%
|
(28.80
)%
|
11.29
%
|
38.82
%
|
30.31
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$2,171,329
|
$1,740,775
|
$2,977,572
|
$3,107,948
|
$3,193,238
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.97
%
|
1.97
%
|
1.98
%
|
1.96
%
|
2.00
%
|
Expenses, net of reimbursements and/or recoupments
|
1.94
%
|
1.94
%
|
1.94
%
|
1.94
%
B
|
2.01
%
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(1.34
)%
|
(1.31
)%
|
(1.65
)%
|
(1.57
)%
|
(1.56
)%
|
Net investment (loss), net of reimbursements and/or recoupments
|
(1.31
)%
|
(1.28
)%
|
(1.61
)%
|
(1.55
)%
|
(1.57
)%
|
Portfolio turnover rate
|
16
%
|
20
%
|
28
%
|
22
%
|
15
%
|
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.
|
B
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
American Beacon Stephens Mid-Cap Growth FundSM
|
|||||
|
Y Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$27.64
|
$39.51
|
$37.34
|
$26.95
|
$21.09
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment (loss)
|
(0.18
)
|
(0.34
)
|
(0.20
)
|
(0.04
)
|
(0.14
)
A
|
Net gains (losses) on investments (both realized and unrealized)
|
7.23
|
(10.76
)
|
4.80
|
10.88
|
6.81
|
Total income (loss) from investment operations
|
7.05
|
(11.10
)
|
4.60
|
10.84
|
6.67
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
-
|
(0.77
)
|
(2.43
)
|
(0.45
)
|
(0.81
)
|
Total distributions
|
-
|
(0.77
)
|
(2.43
)
|
(0.45
)
|
(0.81
)
|
Net asset value, end of period
|
$34.69
|
$27.64
|
$39.51
|
$37.34
|
$26.95
|
Total returnB
|
25.51
%
|
(28.09
)%
|
12.41
%
|
40.22
%
|
31.62
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$44,706,237
|
$38,984,552
|
$82,970,930
|
$69,132,838
|
$30,544,300
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
0.99
%
|
0.98
%
|
0.97
%
|
1.00
%
|
1.01
%
|
Expenses, net of reimbursements and/or recoupments
|
0.95
%
|
0.95
%
|
0.95
%
|
0.96
%
C
|
0.99
%
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(0.36
)%
|
(0.32
)%
|
(0.64
)%
|
(0.61
)%
|
(0.57
)%
|
Net investment (loss), net of reimbursements and/or recoupments
|
(0.32
)%
|
(0.29
)%
|
(0.62
)%
|
(0.57
)%
|
(0.55
)%
|
Portfolio turnover rate
|
16
%
|
20
%
|
28
%
|
22
%
|
15
%
|
A
|
Per share amounts have been calculated using the average shares method.
|
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 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
American Beacon Stephens Mid-Cap Growth FundSM
|
|||||
|
R6 Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$27.97
|
$39.94
|
$37.70
|
$27.18
|
$21.23
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment (loss)
|
(0.10
)
|
(0.23
)
|
(0.14
)
|
(0.06
)
|
(0.05
)
|
Net gains (losses) on investments (both realized and unrealized)
|
7.25
|
(10.97
)
|
4.81
|
11.03
|
6.81
|
Total income (loss) from investment operations
|
7.15
|
(11.20
)
|
4.67
|
10.97
|
6.76
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
-
|
(0.77
)
|
(2.43
)
|
(0.45
)
|
(0.81
)
|
Total distributions
|
-
|
(0.77
)
|
(2.43
)
|
(0.45
)
|
(0.81
)
|
Net asset value, end of period
|
$35.12
|
$27.97
|
$39.94
|
$37.70
|
$27.18
|
Total returnA
|
25.56
%
|
(28.04
)%
|
12.47
%
|
40.36
%
|
31.84
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$29,391,234
|
$24,219,148
|
$55,701,734
|
$37,373,802
|
$17,073,112
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
0.89
%
|
0.89
%
|
0.88
%
|
0.90
%
|
0.92
%
|
Expenses, net of reimbursements and/or recoupments
|
0.88
%
|
0.89
%
|
0.87
%
|
0.84
%
B
|
0.84
%
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(0.26
)%
|
(0.26
)%
|
(0.50
)%
|
(0.49
)%
|
(0.50
)%
|
Net investment (loss), net of reimbursements and/or recoupments
|
(0.25
)%
|
(0.26
)%
|
(0.49
)%
|
(0.43
)%
|
(0.42
)%
|
Portfolio turnover rate
|
16
%
|
20
%
|
28
%
|
22
%
|
15
%
|
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.
|
B
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
American Beacon Stephens Mid-Cap Growth FundSM
|
|||||
|
R5 ClassA
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$27.94
|
$39.90
|
$37.67
|
$27.17
|
$21.23
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment (loss)
|
(0.08
)
B
|
(0.13
)
|
(0.14
)
|
(0.07
)
|
(0.12
)
B
|
Net gains (losses) on investments (both realized and unrealized)
|
7.22
|
(11.06
)
|
4.80
|
11.02
|
6.87
|
Total income (loss) from investment operations
|
7.14
|
(11.19
)
|
4.66
|
10.95
|
6.75
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
-
|
(0.77
)
|
(2.43
)
|
(0.45
)
|
(0.81
)
|
Total distributions
|
-
|
(0.77
)
|
(2.43
)
|
(0.45
)
|
(0.81
)
|
Net asset value, end of period
|
$35.08
|
$27.94
|
$39.90
|
$37.67
|
$27.17
|
Total returnC
|
25.55
%
|
(28.04
)%
|
12.46
%
|
40.30
%
|
31.79
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$568,803,340
|
$384,632,608
|
$611,720,453
|
$476,150,642
|
$278,175,115
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
0.90
%
|
0.90
%
|
0.90
%
|
0.91
%
|
0.96
%
|
Expenses, net of reimbursements and/or recoupments
|
0.89
%
|
0.89
%
|
0.89
%
|
0.89
%
D
|
0.89
%
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(0.26
)%
|
(0.24
)%
|
(0.54
)%
|
(0.52
)%
|
(0.52
)%
|
Net investment (loss), net of reimbursements and/or recoupments
|
(0.25
)%
|
(0.23
)%
|
(0.53
)%
|
(0.50
)%
|
(0.45
)%
|
Portfolio turnover rate
|
16
%
|
20
%
|
28
%
|
22
%
|
15
%
|
A
|
Prior to February 28, 2020, the R5 Class was known as Institutional 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
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
American Beacon Stephens Mid-Cap Growth FundSM
|
|||||
|
Investor Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$22.48
|
$32.42
|
$31.09
|
$22.56
|
$17.80
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment (loss)
|
(0.32
)
|
(0.13
)
A
|
(0.41
)
|
(0.61
)
|
(0.55
)
|
Net gains (losses) on investments (both realized and unrealized)
|
5.99
|
(9.04
)
|
4.17
|
9.59
|
6.12
|
Total income (loss) from investment operations
|
5.67
|
(9.17
)
|
3.76
|
8.98
|
5.57
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
-
|
(0.77
)
|
(2.43
)
|
(0.45
)
|
(0.81
)
|
Total distributions
|
-
|
(0.77
)
|
(2.43
)
|
(0.45
)
|
(0.81
)
|
Net asset value, end of period
|
$28.15
|
$22.48
|
$32.42
|
$31.09
|
$22.56
|
Total returnB
|
25.22
%
|
(28.28
)%
|
12.20
%
|
39.80
%
|
31.28
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$28,162,111
|
$24,969,273
|
$16,964,278
|
$17,203,402
|
$14,802,058
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.22
%
|
1.23
%
|
1.14
%
|
1.23
%
|
1.28
%
|
Expenses, net of reimbursements and/or recoupments
|
1.18
%
C
|
1.23
%
|
1.14
%
|
1.23
%
D
|
1.25
%
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(0.58
)%
|
(0.54
)%
|
(0.79
)%
|
(0.85
)%
|
(0.84
)%
|
Net investment (loss), net of reimbursements and/or recoupments
|
(0.54
)%
|
(0.54
)%
|
(0.79
)%
|
(0.85
)%
|
(0.81
)%
|
Portfolio turnover rate
|
16
%
|
20
%
|
28
%
|
22
%
|
15
%
|
A
|
Per share amounts have been calculated using the average shares method.
|
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 of the Notes to the Financial Statements in the Annual Shareholder Report due to the change in the contractual expense caps on May 1, 2023.
|
D
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
American Beacon Stephens Small Cap Growth FundSM
|
|||||
|
A Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$9.38
|
$15.20
|
$16.60
|
$13.49
|
$12.32
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment (loss)
|
(1.72
)
|
(0.10
)
A,B
|
(0.19
)
B
|
(0.15
)
B,C
|
(0.39
)
|
Net gains (losses) on investments (both realized and unrealized)
|
3.52
|
(4.28
)
|
2.47
|
5.19
|
3.17
|
Total income (loss) from investment operations
|
1.80
|
(4.38
)
|
2.28
|
5.04
|
2.78
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
(0.17
)
|
(1.44
)
|
(3.68
)
|
(1.93
)
|
(1.61
)
|
Total distributions
|
(0.17
)
|
(1.44
)
|
(3.68
)
|
(1.93
)
|
(1.61
)
|
Net asset value, end of period
|
$11.01
|
$9.38
|
$15.20
|
$16.60
|
$13.49
|
Total returnD
|
19.20
%
|
(28.74
)%
|
13.99
%
|
37.25
%
|
22.48
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$5,696,802
|
$22,160,000
|
$7,203,359
|
$6,575,393
|
$4,899,301
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.48
%
|
1.43
%
|
1.38
%
|
1.35
%
|
1.37
%
|
Expenses, net of reimbursements and/or recoupments
|
1.28
%
|
1.28
%
|
1.28
%
|
1.28
%
E
|
1.37
%
F
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(0.98
)%
|
(1.03
)%
A
|
(1.18
)%
|
(1.11
)%
|
(1.12
)%
|
Net investment (loss), net of reimbursements and/or recoupments
|
(0.78
)%
|
(0.88
)%
A
|
(1.08
)%
|
(1.04
)%
|
(1.12
)%
|
Portfolio turnover rate
|
15
%
|
27
%
|
28
%
|
18
%
|
20
%
|
A
|
Net investment income includes a significant dividend payment from Viper Energy Partners LP and Wingstop, Inc. amounting to $0.0115.
|
B
|
Per share amounts have been calculated using the average shares method.
|
C
|
Net investment income includes a significant dividend payment from Wingstop, Inc. amounting to $0.0078.
|
D
|
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.
|
E
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
F
|
Expense ratios may exceed the expense cap in effect at the time as a result of the change in the contractual expense caps on August 23, 2019.
|
American Beacon Stephens Small Cap Growth FundSM
|
|||||
|
C Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$7.58
|
$12.91
|
$14.63
|
$12.15
|
$11.31
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment (loss)
|
(0.13
)
A
|
(1.65
)
B
|
(0.53
)
|
(1.69
)
C
|
(1.19
)
|
Net gains (losses) on investments (both realized and unrealized)
|
1.51
|
(2.24
)
|
2.49
|
6.10
|
3.64
|
Total income (loss) from investment operations
|
1.38
|
(3.89
)
|
1.96
|
4.41
|
2.45
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
(0.17
)
|
(1.44
)
|
(3.68
)
|
(1.93
)
|
(1.61
)
|
Total distributions
|
(0.17
)
|
(1.44
)
|
(3.68
)
|
(1.93
)
|
(1.61
)
|
Net asset value, end of period
|
$8.79
|
$7.58
|
$12.91
|
$14.63
|
$12.15
|
Total returnD
|
18.22
%
|
(30.04
)%
|
12.91
%
|
36.16
%
|
21.56
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$676,861
|
$262,215
|
$566,124
|
$675,112
|
$808,661
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
2.16
%
|
2.17
%
|
2.24
%
|
2.15
%
|
2.17
%
|
Expenses, net of reimbursements and/or recoupments
|
2.06
%
|
2.06
%
|
2.06
%
|
2.06
%
E
|
2.14
%
F
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(1.68
)%
|
(1.79
)%
B
|
(2.04
)%
|
(1.93
)%
|
(1.92
)%
|
Net investment (loss), net of reimbursements and/or recoupments
|
(1.58
)%
|
(1.68
)%
B
|
(1.86
)%
|
(1.84
)%
|
(1.89
)%
|
Portfolio turnover rate
|
15
%
|
27
%
|
28
%
|
18
%
|
20
%
|
A
|
Per share amounts have been calculated using the average shares method.
|
B
|
Net investment income includes a significant dividend payment from from Viper Energy Partners LP and Wingstop, Inc. amounting to $0.0104.
|
C
|
Net investment income includes a significant dividend payment from Wingstop, Inc. amounting to $0.0063.
|
D
|
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.
|
E
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
F
|
Expense ratios may exceed the expense cap in effect at the time as a result of the change in the contractual expense caps on August 23, 2019.
|
American Beacon Stephens Small Cap Growth FundSM
|
|||||
|
Y Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$11.44
|
$18.04
|
$19.05
|
$15.24
|
$13.72
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment (loss)
|
(0.24
)
|
(0.96
)
A
|
(0.13
)
|
(0.56
)
B
|
(0.14
)
C
|
Net gains (losses) on investments (both realized and unrealized)
|
2.46
|
(4.20
)
|
2.80
|
6.30
|
3.27
|
Total income (loss) from investment operations
|
2.22
|
(5.16
)
|
2.67
|
5.74
|
3.13
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
(0.17
)
|
(1.44
)
|
(3.68
)
|
(1.93
)
|
(1.61
)
|
Total distributions
|
(0.17
)
|
(1.44
)
|
(3.68
)
|
(1.93
)
|
(1.61
)
|
Net asset value, end of period
|
$13.49
|
$11.44
|
$18.04
|
$19.05
|
$15.24
|
Total returnD
|
19.42
%
|
(28.54
)%
|
14.23
%
|
37.56
%
|
22.74
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$28,695,634
|
$25,622,348
|
$55,841,696
|
$58,341,053
|
$59,481,096
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.13
%
|
1.13
%
|
1.10
%
|
1.12
%
|
1.14
%
|
Expenses, net of reimbursements and/or recoupments
|
1.05
%
|
1.05
%
|
1.05
%
|
1.06
%
E
|
1.14
%
F
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(0.65
)%
|
(0.75
)%
A
|
(0.88
)%
|
(0.89
)%
|
(0.89
)%
|
Net investment (loss), net of reimbursements and/or recoupments
|
(0.57
)%
|
(0.67
)%
A
|
(0.83
)%
|
(0.83
)%
|
(0.89
)%
|
Portfolio turnover rate
|
15
%
|
27
%
|
28
%
|
18
%
|
20
%
|
A
|
Net investment income includes a significant dividend payment from Viper Energy Partners LP and Wingstop, Inc. amounting to $0.0152.
|
B
|
Net investment income includes a significant dividend payment from Wingstop, Inc. amounting to $0.0081.
|
C
|
Per share amounts have been calculated using the average shares method.
|
D
|
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.
|
E
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
F
|
Expense ratios may exceed the expense cap in effect at the time as a result of the change in the contractual expense caps on August 23, 2019.
|
American Beacon Stephens Small Cap Growth FundSM
|
|||||
|
R6 Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019A
|
Net asset value, beginning of period
|
$11.67
|
$18.34
|
$19.30
|
$15.40
|
$16.91
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment (loss)
|
(0.04
)
|
(0.08
)
B,C
|
(0.11
)
|
(0.08
)
D
|
(0.01
)
|
Net gains (losses) on investments (both realized and unrealized)
|
2.31
|
(5.15
)
|
2.83
|
5.91
|
0.11
|
Total income (loss) from investment operations
|
2.27
|
(5.23
)
|
2.72
|
5.83
|
0.10
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
(0.17
)
|
(1.44
)
|
(3.68
)
|
(1.93
)
|
(1.61
)
|
Total distributions
|
(0.17
)
|
(1.44
)
|
(3.68
)
|
(1.93
)
|
(1.61
)
|
Net asset value, end of period
|
$13.77
|
$11.67
|
$18.34
|
$19.30
|
$15.40
|
Total returnE
|
19.46
%
|
(28.45
)%
|
14.30
%
|
37.76
%
|
0.53
%
F
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$51,853,392
|
$38,307,599
|
$21,521,147
|
$17,036,408
|
$8,132,874
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.05
%
|
1.04
%
|
1.01
%
|
1.02
%
|
1.41
%
G
|
Expenses, net of reimbursements and/or recoupments
|
0.96
%
|
0.96
%
|
0.96
%
|
0.95
%
H
|
0.96
%
G,I
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(0.57
)%
|
(0.63
)%
B
|
(0.80
)%
|
(0.76
)%
|
(1.18
)%
G
|
Net investment (loss), net of reimbursements and/or recoupments
|
(0.48
)%
|
(0.55
)%
B
|
(0.75
)%
|
(0.69
)%
|
(0.73
)%
G
|
Portfolio turnover rate
|
15
%
|
27
%
|
28
%
|
18
%
|
20
%
F
|
A
|
Class launched on April 30, 2019 and commenced operations on May 1, 2019 (Note 1).
|
B
|
Net investment income includes a significant dividend payment from Viper Energy Partners LP and Wingstop, Inc. amounting to $0.0141.
|
C
|
Per share amounts have been calculated using the average shares method.
|
D
|
Net investment income includes a significant dividend payment from Wingstop, Inc. amounting to $0.0084.
|
E
|
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.
|
F
|
Not annualized.
|
G
|
Annualized.
|
H
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
I
|
Expense ratios may the expense cap in effect at the time as a result of the change in the contractual expense caps on August 23, 2019.
|
American Beacon Stephens Small Cap Growth FundSM
|
|||||
|
R5 ClassA
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$11.64
|
$18.31
|
$19.27
|
$15.40
|
$13.83
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment (loss)
|
(0.09
)
|
(0.17
)
B
|
(0.17
)
C
|
(0.31
)
D
|
(0.26
)
|
Net gains (losses) on investments (both realized and unrealized)
|
2.36
|
(5.06
)
|
2.89
|
6.11
|
3.44
|
Total income (loss) from investment operations
|
2.27
|
(5.23
)
|
2.72
|
5.80
|
3.18
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
(0.17
)
|
(1.44
)
|
(3.68
)
|
(1.93
)
|
(1.61
)
|
Total distributions
|
(0.17
)
|
(1.44
)
|
(3.68
)
|
(1.93
)
|
(1.61
)
|
Net asset value, end of period
|
$13.74
|
$11.64
|
$18.31
|
$19.27
|
$15.40
|
Total returnE
|
19.51
%
|
(28.50
)%
|
14.34
%
|
37.56
%
|
22.92
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$195,356,581
|
$167,776,189
|
$280,613,603
|
$261,976,294
|
$244,394,530
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.09
%
|
1.08
%
|
1.04
%
|
1.05
%
|
1.08
%
|
Expenses, net of reimbursements and/or recoupments
|
0.99
%
|
0.99
%
|
0.99
%
|
0.99
%
F
|
1.08
%
G
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(0.61
)%
|
(0.70
)%
B
|
(0.86
)%
|
(0.82
)%
|
(0.83
)%
|
Net investment (loss), net of reimbursements and/or recoupments
|
(0.51
)%
|
(0.61
)%
B
|
(0.81
)%
|
(0.76
)%
|
(0.83
)%
|
Portfolio turnover rate
|
15
%
|
27
%
|
28
%
|
18
%
|
20
%
|
A
|
Prior to February 28, 2020, the R5 Class was known as Institutional Class.
|
B
|
Net investment income includes a significant dividend payment from Viper Energy Partners LP and Wingstop, Inc. amounting to $0.0132.
|
C
|
Per share amounts have been calculated using the average shares method.
|
D
|
Net investment income includes a significant dividend payment from Wingstop, Inc. amounting to $0.0083.
|
E
|
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.
|
F
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
G
|
Expense ratios may exceed the expense cap in effect at the time as a result of the change in the contractual expense caps on August 23, 2019.
|
American Beacon Stephens Small Cap Growth FundSM
|
|||||
|
Investor Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$9.60
|
$15.51
|
$16.88
|
$13.70
|
$12.49
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment (loss)
|
(0.09
)
A
|
(4.03
)
B
|
(0.04
)
|
(0.14
)
C
|
(0.17
)
A
|
Net gains (losses) on investments (both realized and unrealized)
|
1.93
|
(0.44
)
|
2.35
|
5.25
|
2.99
|
Total income (loss) from investment operations
|
1.84
|
(4.47
)
|
2.31
|
5.11
|
2.82
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
-
|
-
|
-
|
-
|
Distributions from net realized gains
|
(0.17
)
|
(1.44
)
|
(3.68
)
|
(1.93
)
|
(1.61
)
|
Total distributions
|
(0.17
)
|
(1.44
)
|
(3.68
)
|
(1.93
)
|
(1.61
)
|
Net asset value, end of period
|
$11.27
|
$9.60
|
$15.51
|
$16.88
|
$13.70
|
Total returnD
|
19.18
%
|
(28.74
)%
|
13.93
%
|
37.18
%
|
22.49
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$34,697,255
|
$14,745,379
|
$78,747,464
|
$78,610,201
|
$63,799,443
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupments
|
1.32
%
|
1.35
%
|
1.35
%
|
1.39
%
|
1.38
%
|
Expenses, net of reimbursements and/or recoupments
|
1.28
%
E
|
1.30
%
|
1.30
%
|
1.31
%
F
|
1.38
%
G
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(0.87
)%
|
(1.00
)%
B
|
(1.13
)%
|
(1.15
)%
|
(1.13
)%
|
Net investment (loss), net of reimbursements and/or recoupments
|
(0.83
)%
|
(0.95
)%
B
|
(1.08
)%
|
(1.07
)%
|
(1.13
)%
|
Portfolio turnover rate
|
15
%
|
27
%
|
28
%
|
18
%
|
20
%
|
A
|
Per share amounts have been calculated using the average shares method.
|
B
|
Net investment income includes a significant dividend payment Viper Energy Partners LP and Wingstop, Inc. amounting to $0.0146.
|
C
|
Net investment income includes a significant dividend payment from Wingstop, Inc. amounting to $0.0074.
|
D
|
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.
|
E
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to the change in the contractual expense caps on May 1, 2023.
|
F
|
Expense ratios may exceed stated expense caps in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report due to security lending expenses, which are not reimbursable under the agreement with the Manager.
|
G
|
Expense ratios may exceed the expense cap in effect at the time as a result of the change in the contractual expense caps on August 23, 2019.
|
By Telephone:
|
Call
1-800-658-5811 |
By Mail:
|
American Beacon Funds
P.O. Box 219643 Kansas City, MO 64121-9643 |
By E-mail:
|
americanbeaconfunds@ambeacon.com
|
On the Internet:
|
American Beacon is a registered service mark of American Beacon Advisors, Inc. The American Beacon Funds, American Beacon Stephens Mid-Cap Growth Fund and American Beacon Stephens Small Cap Growth 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 exchanged from Class C (i.e., level-load) shares that are no longer subject to a CDSC and are exchanged into Class A shares of the same fund pursuant to J.P. Morgan Securities LLC’s share class exchange policy.
|
■
|
Qualified employer-sponsored defined contribution and defined benefit retirement plans, nonqualified deferred compensation plans, other employee benefit plans and trusts used to fund those plans. For purposes of this provision, such plans do not include SEP IRAs, SIMPLE IRAs, SAR-SEPs or 501(c)(3) accounts.
|
■
|
Shares of funds purchased through J.P. Morgan Securities LLC Self-Directed Investing accounts.
|
■
|
Shares purchased through rights of reinstatement.
|
■
|
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 J.P. Morgan Securities LLC or its affiliates and their spouse or financial dependent as defined by J.P. Morgan Securities LLC.
|
■
|
A shareholder in the fund’s Class C shares will have their shares converted by J.P. Morgan Securities LLC to Class A shares (or the appropriate share class) of the same fund if the shares are no longer subject to a CDSC and the conversion is consistent with J.P. Morgan Securities LLC’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 retirement accounts pursuant to the Internal Revenue Code.
|
■
|
Shares acquired through a right of reinstatement.
|
■
|
Breakpoints as described in the prospectus.
|
■
|
Rights of Accumulation (“ROA”) which entitle shareholders to breakpoint discounts as described in the fund’s prospectus will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at J.P. Morgan Securities LLC. Eligible fund family assets not held at J.P. Morgan Securities LLC (including 529 program holdings, where applicable) may be included in the ROA calculation only if the shareholder notifies their financial advisor about such assets.
|
■
|
Letters of Intent (“LOI”) which allow for breakpoint discounts based on anticipated purchases within a fund family, through J.P. Morgan Securities LLC, over a 13-month period of time (if applicable).
|
■
|
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.
|
ACH
|
Automated Clearing House
|
|
ADRs
|
American Depositary Receipts
|
|
Advisers Act
|
Investment Advisers Act of 1940, as amended
|
|
American Beacon or Manager
|
American Beacon Advisors, Inc.
|
|
Beacon Funds
|
American Beacon Funds
|
|
Board
|
Board of Trustees
|
|
Brexit
|
The United Kingdom’s departure from the European Union
|
|
Capital Gains Distributions
|
Distributions of realized net capital gains
|
|
CDSC
|
Contingent Deferred Sales Charge
|
|
CFTC
|
Commodity Futures Trading Commission
|
|
Covered Shares
|
Fund shares that the shareholder acquired or acquires after 2011
|
|
CPO
|
Commodity Pool Operator
|
|
Denial of Services
|
A cybersecurity incident that results in customers or employees being unable to access electronic systems
|
|
Dividends
|
Distributions from a Fund’s net investment income
|
|
DRD
|
Dividends-received deduction
|
|
Equity REIT
|
A pooled investment vehicle that owns, and often operates, income producing real estate
|
|
ESG
|
Environmental, Social, and/or Governance
|
|
ETF
|
Exchange-Traded Fund
|
|
EU
|
European Union
|
|
Hybrid REIT
|
A pooled investment vehicle that owns, and often operates, income producing real estate and invests in mortgages secured by loans on such real estate
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Internal Revenue Code
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Internal Revenue Code of 1986, as amended
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Investment Company Act
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Investment Company Act of 1940, as amended
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IRA
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Individual Retirement Account
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IRS
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Internal Revenue Service
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LOI
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Letter of Intent
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Management Agreement
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A Fund’s Management Agreement with the Manager
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MLP
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Master Limited Partnership
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Mortgage REIT
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A pooled investment vehicle that invests in mortgages secured by loans on income producing real estate
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NAV
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Fund’s net asset value
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NYSE
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New York Stock Exchange
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Other Distributions
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Distributions of net gains from foreign currency transactions
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OTC
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Over-the-Counter
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Proxy Policy
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Proxy Voting Policy and Procedures
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QDI
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Qualified Dividend Income
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REIT
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Real Estate Investment Trust
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RIC
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Regulated Investment Company
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SAI
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Statement of Additional Information
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SEC
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Securities and Exchange Commission
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State Street
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State Street Bank and Trust Company
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SVP
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Signature Validation Program
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Trust
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American Beacon Funds
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UGMA
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Uniform Gifts to Minors Act
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UK
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United Kingdom
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UTMA
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Uniform Transfers to Minors Act
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Ticker
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Share Class
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A
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C
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Y
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R6
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R5
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Investor
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American Beacon Stephens Mid-Cap Growth Fund
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SMFAX
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SMFCX
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SMFYX
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SFMRX
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SFMIX
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STMGX
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American Beacon Stephens Small Cap Growth Fund
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SPWAX
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SPWCX
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SPWYX
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STSRX
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STSIX
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STSGX
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Strategy/Risk
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American Beacon Stephens Mid-Cap Growth Fund
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American Beacon Stephens Small Cap Growth Fund
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Borrowing Risk
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X
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X
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Cash Equivalents and Other Short-Term Investments
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X
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X
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X
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X
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X
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X
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X
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X
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X
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X
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X
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X
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X
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X
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X
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X
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X
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X
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X
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X
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X
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X
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Convertible Securities
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X
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X
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Cover and Asset Segregation
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X
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X
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Cybersecurity and Operational Risk
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X
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X
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Equity Investments
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X
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X
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X
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X
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X
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X
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• ADRs
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X
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X
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X
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X
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X
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X
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Expense Risk
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X
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X
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Foreign Securities
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X
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X
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Growth Companies
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X
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X
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Interfund Lending
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X
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X
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Issuer Risk
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X
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X
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Large-Capitalization Companies Risk
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X
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Micro-Capitalization Companies Risk
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X
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Strategy/Risk
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American Beacon Stephens Mid-Cap Growth Fund
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American Beacon Stephens Small Cap Growth Fund
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Mid-Capitalization Companies Risk
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X
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X
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Other Investment Company Securities and Exchange-Traded Products
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X
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X
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X
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X
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X
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X
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Preferred Stock
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X
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X
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Real Estate Related Investments
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X
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X
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Redemption Risk
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X
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X
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Small-Capitalization Companies Risk
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X
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X
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U.S. Government Agency Securities
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X
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X
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U.S. Treasury Obligations
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X
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X
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Valuation Risk
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X
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X
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Bank Deposit Notes. Bank deposit notes are obligations of a bank that provide an alternative to certificates of deposit. Similar to certificates of deposit, deposit notes represent bank level investment and, therefore, are senior to all holding company corporate debt. Bank deposit notes rank junior to domestic deposit liabilities of the bank and pari passu with other senior, unsecured obligations of the bank. Typically, bank deposit notes are not insured by the Federal Deposit Insurance Corporation or any other insurer.
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Bankers’ Acceptances. Bankers’ acceptances are short-term credit instruments designed to enable businesses to obtain funds to finance commercial transactions. Generally, an acceptance is a time draft drawn on a bank by an exporter or an importer to obtain a stated amount of funds to pay for specific merchandise. The draft is then “accepted” by a bank that, in effect, unconditionally guarantees to pay the face value of the instrument on its maturity date. The acceptance may then be held by the accepting bank as an earning asset or it may be sold in the secondary market at the going rate of discount for a specific maturity. Most acceptances have maturities of six months or less. Bankers’ acceptances rank junior to domestic deposit liabilities of the bank and pari passu with other senior, unsecured obligations of the bank.
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Bearer Deposit Notes. Bearer deposit notes, or bearer bonds, are bonds or debt securities that entitle the holder of the document to ownership or title in the deposit. Such notes are typically unregistered, and whoever physically holds the bond is presumed to be the owner of the instrument. Recovery of the value of a bearer bond in the event of its loss or destruction usually is impossible. Interest is typically paid upon presentment of an interest coupon for payment.
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CDs. CDs are negotiable certificates issued against funds deposited in an eligible bank (including its domestic and foreign branches, subsidiaries and agencies) for a definite period of time and earning a specified rate of return. U.S. dollar denominated CDs issued by banks abroad are known as Eurodollar CDs. CDs issued by foreign branches of U.S. banks are known as Yankee CDs.
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Commercial Paper. Commercial paper is a short-term debt security issued by a corporation, bank, municipality, or other issuer, usually for purposes such as financing current operations. A Fund may invest in commercial paper that cannot be resold to the public without an effective registration statement under the Securities Act. While some restricted commercial paper normally is deemed illiquid, in certain cases it may be deemed liquid.
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Government Money Market Funds. A Fund may invest cash balances in money market funds that are registered as investment companies under the Investment Company Act, including money market funds that are advised by the Manager. Money market funds invest in highly-liquid, short-term instruments, which include cash and cash equivalents, and debt securities with high credit ratings and short-term maturities, such as U.S. Treasuries. A “government money market fund” is required to invest at least 99.5% of its total assets in cash, U.S. government securities, and/or repurchase agreements that are fully collateralized by government securities or cash. Government securities include any security issued or guaranteed as to principal or interest by the U.S. government and its agencies or instrumentalities. By investing in a money market fund, a Fund becomes a shareholder of that money market fund. As a result, Fund shareholders indirectly bear their proportionate share of the expenses of the money market funds in which a Fund invests in addition to any fees and expenses Fund shareholders directly bear in connection with a Fund’s own operations. These expenses may include, for example, advisory and administrative fees, including advisory fees charged by the Manager to any applicable money market funds advised by the Manager. These other fees and expenses are reflected in the Fees and Expenses Table for a Fund in its Prospectus, if applicable. Shareholders also would be exposed to the risks associated with money market funds and the portfolio investments of such
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money market funds, including that a money market fund’s yield will be lower than the return that a Fund would have derived from other investments that would provide liquidity. Although a 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 money market fund’s investments, increases in interest rates and deteriorations in the credit quality of the instruments the money market fund has purchased can cause the price of a money market security to decrease and may reduce the money market fund’s yield. In addition, a money market fund is subject to the risk that the value of an investment may be eroded over time by inflation. Factors that could adversely affect the value of a money market fund’s shares include, among other things, a sharp rise in interest rates, an illiquid market for the securities held by the money market fund, a high volume of redemption activity in a money market fund’s shares, and a credit event or credit rating downgrade affecting one or more of the issuers of securities held by the money market fund. There can be no assurance that a money market fund will maintain a $1.00 per share net asset value (“NAV”) at all times.
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Government Obligations. Government obligations may include U.S. Treasury securities, Treasury inflation-protected securities, and other debt instruments backed by the full faith and credit of the United States, or debt obligations of U.S. Government-sponsored entities.
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Repurchase Agreements. Repurchase agreements are agreements pursuant to which a Fund purchases securities from a bank that is a member of the Federal Reserve System (or a foreign bank or U.S. branch or agency of a foreign bank), or from a securities dealer, that agrees to repurchase the securities from a Fund at a higher price on a designated future date. Repurchase agreements generally are for a short period of time, usually less than a week. Costs, delays, or losses could result if the selling party to a repurchase agreement becomes bankrupt or otherwise defaults.
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Short-term Corporate Debt Securities. Short-term corporate debt securities are securities and bonds issued by corporations with shorter terms to maturity. Corporate securities generally bear a higher risk than U.S. government bonds.
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Time Deposits. Time deposits, also referred to as “fixed time deposits,” are non-negotiable deposits maintained at a banking institution for a specified period of time at a specified interest rate. Time deposits may be withdrawn on demand by the investor, but may be subject to early withdrawal penalties which vary depending upon market conditions and the remaining maturity of the obligation. There are no contractual restrictions on the right to transfer a beneficial interest in a time deposit to a third party, although there is no market for such deposits.
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Common Stock. Common stock generally takes the form of shares in a corporation which represent an ownership interest. It ranks below preferred stock and debt securities in claims for dividends and for assets of the company in a liquidation or bankruptcy. 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, currency exchange rates or industry regulation. Companies that elect to 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 may be exchange-traded or traded over-the-counter. OTC stock may be less liquid than exchange-traded stock.
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Depositary Receipts. A Fund may invest in depositary receipts, which represent ownership interests in securities of foreign companies (an “underlying issuer”) that have been deposited with a bank or trust and that trade on an exchange or OTC. Depositary receipts may not be denominated in the same currency as the securities into which they may be converted, and they are subject to the risk of fluctuation in the currency exchange rate. Investing in depositary receipts entails substantially the same risks as direct investment in foreign securities. There is generally less publicly available information about foreign companies and there may be less governmental regulation and supervision of foreign stock exchanges, brokers, and listed companies. In addition, such companies may use different accounting and financial standards (and certain currencies may become unavailable for transfer from a foreign currency), resulting in a Fund’s possible inability to convert immediately into U.S. currency proceeds realized upon the sale of portfolio securities of the affected foreign companies. In addition, the issuers of unsponsored depositary receipts 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 a sponsored depositary receipt or the underlying security. Please see “Foreign Securities” below for a description of the risks associated with investments in foreign securities. A Fund may invest in the following type of depositary receipts:
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ADRs. ADRs are depositary receipts for foreign issuers in registered form, typically issued by a U.S. financial institution, traded in U.S. securities markets.
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Initial Public Offerings. A Fund can invest in IPOs. By definition, securities issued in IPOs have not traded publicly until the time of their offerings. Special risks associated with IPOs may include, among others, the fact that there may only be a limited number of shares available for trading. The market for those securities may be unseasoned. The issuer may have a limited operating history. These factors may contribute to price volatility. The limited number of shares available for trading in some IPOs may also make it more difficult for a Fund to buy or sell significant amounts of shares
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without an unfavorable impact on prevailing prices. In addition, some companies initially offering their shares publicly are involved in relatively new industries or lines of business, which may not be widely understood by investors. Some of the companies involved in new industries may be regarded as developmental state companies, without revenues or operating income, or the near-term prospects of them. Many IPOs are by small- or micro-cap companies that are undercapitalized. IPOs may adversely impact a Fund’s performance. However, the impact of IPOs on a Fund’s performance will likely decrease as a Fund’s asset size increases.
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Master Limited Partnerships. A Fund may invest in publicly traded partnerships such as MLPs. MLPs issue units that are registered with the SEC and are freely tradable on a securities exchange or in the OTC market. An MLP may have one or more general partners, who conduct the business, and one or more limited partners, who contribute capital. The general partner or partners are jointly and severally responsible for the liabilities of the MLP. An MLP also may be an entity similar to a limited partnership, such as an LLC, which has one or more managers or managing members and non-managing members (who are like limited partners). A Fund will invest in an MLP as a limited partner, and normally would not be liable for the debts of an MLP beyond the amount that a Fund has invested therein. However, as a limited partner, a Fund would not be shielded to the same extent that a stockholder of a corporation would be. In certain instances, creditors of an MLP would have the right to seek a return of capital that had been distributed to a limited partner. This right of an MLP’s creditors would continue even after a Fund had sold its investment in the partnership. Holders of MLP units have more limited rights to vote on matters affecting the partnership than owners of common stock. MLPs typically invest in real estate and oil and gas equipment leasing assets, but they also finance entertainment, research and development, and other projects.
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ETFs. A Fund may purchase shares of ETFs. ETFs trade like a common stock and passive ETFs usually represent a fixed portfolio of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. Typically, a Fund would purchase passive ETF shares to obtain exposure to all or a portion of the stock or bond market. As a shareholder of an ETF, a Fund would be subject to its ratable share of the ETF’s expenses, including its advisory and administration expenses. An investment in an ETF generally presents the same primary risks as an investment in a conventional mutual fund (i.e., one that is not exchange traded) that has the same investment objective, strategies, and policies. The price of an ETF can fluctuate within a wide range, and a Fund could lose money investing in an ETF if the prices of the securities owned by the ETF decline in value. In addition, ETFs are subject to the following risks that do not apply to conventional mutual funds: (1) the market price of the ETF’s shares may trade at a discount or premium to their NAV per share; (2) an active trading market for an ETF’s shares may not develop or be maintained; or (3) trading of an ETF’s shares may be halted if the listing exchange’s officials deem such action appropriate, the shares are de-listed from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.
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Money Market Funds. A Fund can invest free cash balances in registered open-end investment companies regulated as money market funds under the Investment Company Act, to provide liquidity or for defensive purposes. A Fund would invest in money market funds rather than purchasing individual short-term investments. Although a 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 money market fund’s investments, increases in interest rates and deteriorations in the credit quality of the instruments the money market fund has purchased may reduce the money market fund’s yield and can cause the price of a money market security to decrease. In addition, a money market fund is subject to the risk that the value of an investment may be eroded over time by inflation. If the liquidity of a money market fund’s portfolio deteriorates below certain levels, the money market fund may suspend redemptions (i.e., impose a redemption gate) and thereby prevent a Fund from selling its investment in the money market fund, or impose a fee of up to 2% on amounts redeemed from the money market fund.
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Invest up to 20% of its total assets in debt securities that are investment grade at the time of purchase, including obligations of the U.S. Government, its agencies and instrumentalities, corporate debt securities, mortgage-backed securities, asset-backed securities, master-demand notes, Yankee and Eurodollar bank certificates of deposit, time deposits, bankers’ acceptances, commercial paper and other notes, inflation-indexed securities, and other debt securities. Investment grade securities 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 at least two rating organizations rating that security, such as S&P Global Ratings (“S&P Global”), Fitch, Inc. (“Fitch”) or Moody’s Investors Service, Inc. (“Moody’s”), or rated in one of the four highest rating categories by one rating organization if it is the only rating organization rating that security. Obligations rated in the fourth highest rating category are limited to 25% of each of these Funds’ debt allocations. These Funds, at the discretion of the Manager, or the applicable sub-advisor, may retain a debt security that has been downgraded below the initial investment criteria.
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1 | Engage in dollar rolls or purchase or sell securities on a when-issued or forward commitment basis. The purchase or sale of when-issued securities enables an investor to hedge against anticipated changes in interest rates and prices by locking in an attractive price or yield. The price of when-issued securities is fixed at the time the commitment to purchase or sell is made, but delivery and payment for the when-issued securities takes place at a later date, normally one to two months after the date of purchase. During the period between purchase and settlement, no payment is made by the purchaser to the issuer and no interest accrues to the purchaser. Such transactions therefore involve a risk of loss if the value of the security to be purchased declines prior to the settlement date or if the value of the security to be sold increases prior to the settlement date. A sale of a when-issued security also involves the risk that the other party will be unable to settle the transaction. Dollar rolls are a type of forward commitment transaction. Purchases and sales of securities on a forward commitment basis involve a commitment to purchase or sell securities with payment and delivery to take place at some future date, normally one to two months after the date of the transaction. As with |
when-issued securities, these transactions involve certain risks, but they also enable an investor to hedge against anticipated changes in interest rates and prices. Forward commitment transactions are executed for existing obligations, whereas in a when-issued transaction, the obligations have not yet been issued. |
2 | Invest in other investment companies (including affiliated investment companies) to the extent permitted by the Investment Company Act, or exemptive relief granted by the SEC. |
3 | Loan securities to broker-dealers or other institutional investors. Securities loans will not be made if, as a result, the aggregate amount of all outstanding securities loans by a Fund exceeds 33¹/3% of its total assets (including the market value of collateral received). For purposes of complying with a Fund’s investment policies and restrictions, collateral received in connection with securities loans is deemed an asset of a Fund to the extent required by law. |
4 | Enter into repurchase agreements. A repurchase agreement is an agreement under which securities are acquired by a Fund from a securities dealer or bank subject to resale at an agreed upon price on a later date. The acquiring Fund bears a risk of loss in the event that the other party to a repurchase agreement defaults on its obligations and a Fund is delayed or prevented from exercising its rights to dispose of the collateral securities. However, the Manager or the sub-advisor, as applicable, attempt to minimize this risk by entering into repurchase agreements only with financial institutions that are deemed to be of good financial standing. |
5 | Purchase securities sold in private placement offerings made in reliance on the “private placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act and resold to qualified institutional buyers under Rule 144A under the Securities Act. A Fund will not invest more than 15% of its net assets in Section 4(a)(2) securities and illiquid securities unless the Manager or the sub-advisor, as applicable, determines that any Section 4(a)(2) securities held by such Fund in excess of this level are liquid. |
1 | Purchase or sell real estate or real estate limited partnership interests, provided, however, that a Fund may invest in securities secured by real estate or interests therein or issued by companies which invest in real estate or interests therein when consistent with the other policies and limitations described in the Prospectus. |
2 | Invest in physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent a Fund from purchasing or selling foreign currency, options, futures contracts, options on futures contracts, forward contracts, swaps, caps, floors, collars, securities on a forward-commitment or delayed-delivery basis, and other similar financial instruments). |
3 | Engage in the business of underwriting securities issued by others, except to the extent that, in connection with the disposition of securities, a Fund may be deemed an underwriter under federal securities law. |
4 | Lend any security or make any other loan except: (i) as otherwise permitted under the Investment Company Act, (ii) pursuant to a rule, order or interpretation issued by the SEC or its staff, (iii) through the purchase of a portion of an issue of debt securities in accordance with a Fund’s investment objective, policies and limitations, or (iv) by engaging in repurchase agreements. |
5 | Issue any senior security except as otherwise permitted (i) under the Investment Company Act or (ii) pursuant to a rule, order or interpretation issued by the SEC or its staff. |
6 | Borrow money, except as otherwise permitted under the Investment Company Act or pursuant to a rule, order or interpretation issued by the SEC or its staff, including: (i) as a temporary measure, (ii) by entering into reverse repurchase agreements, and (iii) by lending portfolio securities as collateral. For purposes of this investment limitation, the purchase or sale of options, futures contracts, options on futures contracts, forward contracts, swaps, caps, floors, collars and other similar financial instruments shall not constitute borrowing. |
7 | Invest more than 5% of its total assets (taken at market value) in securities of any one issuer, other than obligations issued by the U.S. Government, its agencies and instrumentalities, or purchase more than 10% of the voting securities of any one issuer, with respect to 75% of a Fund’s total assets. |
8 | Invest more than 25% of its total assets in the securities of companies primarily engaged in any one industry provided that: (i) this limitation does not apply to obligations issued by U.S. agencies; and (ii) tax exempt municipalities and their agencies and authorities are not deemed to be industries. |
1 | Invest more than 15% of its net assets in illiquid securities, including time deposits and repurchase agreements that mature in more than seven days; or |
2 | Purchase securities on margin, except that (1) a Fund may obtain such short term credits necessary for the clearance of transactions, and (2) a Fund may make margin payments in connection with foreign currency, futures contracts, options, forward contracts, swaps, caps, floors, collars, securities purchased or sold on a forward-commitment or delayed-delivery basis or other financial instruments. |
1 | a complete list of holdings for each Fund on an annual and semi-annual basis in the reports to shareholders within sixty days of the end of each fiscal semi-annual period and in publicly available filings of Form N-CSR with the SEC within ten days thereafter (available on the SEC’s website at www.sec.gov); |
2 | a complete list of holdings for each Fund as of the end of each fiscal quarter in publicly available filings of Form N-PORT with the SEC within sixty days of the end of the fiscal quarter (available on the SEC’s website at www.sec.gov); |
3 | a complete list of holdings for the American Beacon Stephens Mid-Cap Growth Fund and American Beacon Stephens Small Cap Growth Fund as of the end of each month on the Funds’ website (www.americanbeaconfunds.com) approximately twenty days after the end of the month; and |
4 | ten largest holdings for each Fund as of the end of each calendar quarter on the Funds’ website (www.americanbeaconfunds.com) and in sales materials approximately fifteen days after the end of the calendar quarter. |
Service Provider
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Service
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Holdings Access
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Manager
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Investment management and administrator
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Complete list on intraday basis with no lag
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Sub-Advisor
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Investment management
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Holdings under sub-advisor’s management on intraday basis with no lag
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State Street Bank and Trust Co. (“State Street”) and its designated foreign sub-custodians
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Securities lending agent for Funds that participate in securities lending, Funds’ custodian and foreign custody manager, sub-administrator, fund administration service provider, and foreign sub-custodian
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Complete list on daily basis with no lag
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PricewaterhouseCoopers LLP
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Funds’ independent registered public accounting firm
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Complete list on annual basis with no lag
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Abel Noser Solutions
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Trade execution cost analysis
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Complete list on daily basis with no lag
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Automated Securities Clearance LLC
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Compliance monitoring
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Complete list on daily basis with one-day lag
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Baseline Analytics
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Performance and portfolio analytics reporting
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Complete list on daily basis with no lag
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Bloomberg Finance L.P.
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Performance and portfolio analytics reporting
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Complete list on daily basis with no lag
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Broadridge Financial Solutions, Inc.
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Class action services and proxy services for the sub-advisor
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Complete list on daily basis with no lag
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Charles River Systems, Inc.
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Trade order management for sub-advisor
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Complete list on daily basis with no lag
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FactSet Research Systems, Inc.
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Performance and portfolio analytics reporting for the Manager and sub-advisor
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Complete list on daily basis with no lag
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Institutional Shareholder Services (“ISS”)
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Proxy voting research provider to sub-advisor, and share recall services provider to the Manager
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Complete list on daily basis with no lag
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Investment Technology Group, Inc.
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Fair valuation of portfolio securities for Funds with significant foreign securities holdings; transaction cost analysis for sub-advisor
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Complete list on daily basis with no lag and more frequently when the Manager seeks advice with respect to certain holdings
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KPMG International
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Service provider to State Street
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Complete list on annual basis with lag
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Service Provider
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Service
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Holdings Access
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SS&C (APX AOS Infrastructure)
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Portfolio management software for the sub-advisor
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Complete list on daily basis with no lag
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SEI Global Services, Inc.
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Accounting and operations agent for the sub-advisor
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Complete list on daily basis with no lag
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The Yield Book Inc.
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Performance and portfolio analytics reporting
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Complete list on monthly basis with four-day lag
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Trade Informatics
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Transaction cost analysis for the sub-advisor
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Complete list on daily basis with no lag
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1 | Recipients of portfolio holdings information must agree in writing to keep the information confidential until it has been posted to the Funds’ website and not to trade based on the information; |
2 | Holdings may only be disclosed as of a month-end date; |
3 | No compensation may be paid to the Funds, the Manager or any other party in connection with the disclosure of information about portfolio securities; and |
4 | A member of the Manager’s Compliance staff must approve requests for nonpublic holdings information. |
Name and Year of Birth*
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Position and Length of Time Served on the American Beacon Funds and American Beacon Select Funds
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Position and Length of Time Served on the American Beacon Institutional Funds Trust
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Principal Occupation(s) and Directorships During Past 5 Years
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INTERESTED TRUSTEE
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Eugene J. Duffy
(1954)** |
Trustee since 2008
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Trustee since 2017
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Managing Director, Global Investment Management Distribution, Mesirow Financial Administrative Corporation (2016-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
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NON-INTERESTED TRUSTEES
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Gilbert G. Alvarado
(1969) |
Trustee since 2015
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Trustee since 2017
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Chief Financial Officer, The Conrad Prebys Foundation (2022-Present); President, SJVIIF, LLC, Impact Investment Fund (2018-2022); Executive Vice President/COO, Sierra Health Foundation (health conversion private foundation) (2022), Senior Vice President/CFO, Sierra Health Foundation (health conversion private foundation) (2006-2022); Executive Vice President/COO, Sierra Health Foundation: Center for Health Program Management (California public benefit corporation) (2022), Senior Vice President/CFO, Sierra Health Foundation: Center for Health Program Management (California public benefit corporation) (2012-2022); Director, Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
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Joseph B. Armes
(1962) |
Trustee since 2015
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Trustee since 2017
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Director, Switchback Energy Acquisition (2019-2021); Chairman & CEO, CSW Industrials f/k/a Capital Southwest Corporation (investment company) (2015-Present); President & CEO, JBA Investment Partners (family investment vehicle) (2010-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
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Gerard J. Arpey
(1958) |
Trustee since 2012
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Trustee since 2017
|
Partner, Emerald Creek Group (private equity firm) (2011-Present); Director, S.C. Johnson & Son, Inc. (privately held company) (2008-Present); Director, The Home Depot, Inc. (NYSE: HD) (2015-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
|
Brenda A. Cline
(1960) |
Chair since 2019
Vice Chair 2018
Trustee since 2004
|
Chair since 2019
Vice Chair 2018
Trustee since 2017
|
Chief Financial Officer, Treasurer and Secretary, Kimbell Art Foundation (1993-Present); Director, Tyler Technologies, Inc. (public sector software solutions company) (2014-Present); Director, Range Resources Corporation (oil and natural gas company) (2015-Present); Trustee, Cushing Closed-End (2) and Open-End Funds (3) (2017-2021); Chair, American Beacon Sound Point Enhanced Income Fund (2019-2021), Vice Chair (2018), Trustee (2018-2021); Chair, American Beacon Apollo Total Return Fund (2019-2021), Vice Chair (2018), Trustee (2018-2021).
|
Name and Year of Birth*
|
Position and Length of Time Served on the American Beacon Funds and American Beacon Select Funds
|
Position and Length of Time Served on the American Beacon Institutional Funds Trust
|
Principal Occupation(s) and Directorships During Past 5 Years
|
Claudia A. Holz
(1957) |
Trustee since 2018
|
Trustee since 2018
|
Independent Director, Blue Owl Capital Inc. (2021-Present); Partner, Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
|
Douglas A. Lindgren
(1961) |
Trustee since 2018
|
Trustee since 2018
|
Director, JLL Income Property Trust (2022-Present); Consultant, Carne Financial Services (2017-2019); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
|
Barbara J. McKenna
(1963) |
Trustee since 2012
|
Trustee since 2017
|
President and Managing Principal, Longfellow Investment Management Company (2005-Present, President since 2009); Member, External Diversity Council of the Federal Reserve Bank of Boston (2021-2023); Board Advisor, United States Tennis Association (2021-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
|
* | The Board has adopted a retirement policy that requires Trustees to retire no later than the last day of the calendar year in which they reach the age of 75. |
** | Mr. Duffy is deemed to be an “interested person” of the Trust, as defined by the Investment Company Act of 1940, as amended, by virtue of his position with Mesirow |
Financial, Inc., a broker-dealer. |
INTERESTED TRUSTEE
|
|
American Beacon Fund
|
Duffy
|
American Beacon Stephens Mid-Cap Growth Fund
|
None
|
American Beacon Stephens Small Cap Growth Fund
|
None
|
Aggregate Dollar Range of Equity Securities in all Trusts (27 Funds as of December 31, 2023)
|
$10,001 - $50,000
|
NON-INTERESTED TRUSTEES
|
|||||||
American Beacon Fund
|
Alvarado
|
Armes
|
Arpey
|
Cline
|
Holz
|
Lindgren
|
McKenna
|
American Beacon Stephens Mid-Cap Growth Fund
|
None
|
None
|
None
|
None
|
$50,001 - $100,000
|
None
|
None
|
American Beacon Stephens Small Cap Growth Fund
|
None
|
None
|
None
|
None
|
None
|
None
|
None
|
Aggregate Dollar Range of Equity Securities in all Trusts (27 Funds as of December 31, 2023)
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
The following table shows total compensation (excluding reimbursements) paid by the Trusts to each Trustee for the fiscal year ended December 31, 2023.
|
||
Name of Trustee
|
Aggregate Compensation from the Trust
|
Total Compensation from the Trusts
|
INTERESTED TRUSTEE
|
||
Eugene J. Duffy
|
$188,509
|
$200,000
|
NON-INTERESTED TRUSTEES
|
||
Gilbert G. Alvarado
|
$203,589
|
$216,000
|
Joseph B. Armes
|
$201,704
|
$214,000
|
Gerard J. Arpey
|
$199,819
|
$212,000
|
Brenda A. Cline1
|
$250,717
|
$266,000
|
Claudia A. Holz
|
$223,383
|
$237,000
|
Douglas A. Lindgren
|
$223,383
|
$237,000
|
Barbara J. McKenna
|
$203,589
|
$216,000
|
1 | Upon her retirement from the Board, Ms. Cline is eligible for flight benefits afforded to Eligible Trustees who served on the Boards prior to September 12, 2008 as described below. |
Name and Year of Birth
|
Position and Length of Time Served on the American Beacon Funds and American Beacon Select Funds
|
Position and Length of Time Served on the American Beacon Institutional Funds Trust
|
Principal Occupation(s) and Directorships During Past 5 Years
|
OFFICERS
|
|||
Rebecca L. Harris
(1966) |
President
Since May 2024 Vice President
2022-2024 |
President
Since May 2024 Vice President
2022-2024 |
President (2024-Present); Senior Vice President (2021-2024), Vice President (2011-2021), American Beacon Advisors, Inc.; President (2021-2024), Senior Vice President (2021-2024), Vice President (2017-2021), Resolute Investment Managers, Inc.; President (2024-Present); Senior Vice President (2021-2024), Vice President (2017-2021), Resolute Investment Services, Inc.; Vice President, Alpha Quant Advisors, LLC (2016-2020); Vice President (2018-2022), Director (2022) Continuous Capital, LLC; Director (2022-Present) National Investment Services of America, LLC; Director (2022-Present) RSW Investments Holdings LLC; Director (2022-Present) Shapiro Capital Management LLC; Director (2022-Present) SSI Investment Management LLC; Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021); Assistant Secretary, American Beacon Funds (2010 – 2022); Assistant Secretary, American Beacon Select Funds (2010 – 2022); Assistant Secretary, American Beacon Institutional Funds Trust (2017 – 2022).
|
Rosemary K. Behan
(1959) |
Vice President, Secretary and Chief Legal Officer
since 2006 |
Vice President, Secretary and Chief Legal Officer
since 2017 |
Senior Vice President (2021-Present), Vice President (2006-2021), Secretary and General Counsel (2006-Present), American Beacon Advisors, Inc.; Secretary, Resolute Investment Holdings, LLC (2015-Present); Secretary, Resolute Topco, Inc. (2015-Present); Secretary, Resolute Acquisition, Inc. (2015-Present); Senior Vice President (2021-Present), Vice President (2015-2021), Secretary and General Counsel (2015-Present), Resolute Investment Managers, Inc.; Secretary, Resolute Investment Distributors, Inc. (2017-Present); Senior Vice President (2021-Present), Vice President (2017-2021), Secretary and General Counsel (2017-Present), Resolute Investment Services, Inc.; Secretary, American Private Equity Management, LLC (2008-2024); Secretary and General Counsel, Alpha Quant Advisors, LLC (2016-2020); Vice President and Secretary, Continuous Capital, LLC (2018-2022); Secretary, Green Harvest Asset Management, LLC (2019-2021); Secretary, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2014-Present); Secretary, American Beacon Cayman TargetRisk Company, Ltd (2018-Present); Secretary, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Secretary, American Beacon Cayman Trend Company, Ltd. (2023-Present); Vice President, Secretary, and Chief Legal Officer, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, Secretary, and Chief Legal Officer, American Beacon Apollo Total Return Fund (2018-2021).
|
Paul B. Cavazos
(1969) |
Vice President
since 2016 |
Vice President
since 2017 |
Chief Investment Officer and Senior Vice President, American Beacon Advisors, Inc. (2016-Present); Vice President, American Private Equity Management, L.L.C. (2017-2024); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
|
Erica B. Duncan
(1970) |
Vice President
since 2011 |
Vice President
since 2017 |
Vice President, American Beacon Advisors, Inc. (2011-Present); Vice President, Resolute Investment Managers, Inc. (2018-Present); Vice President, Resolute Investment Services, Inc. (2018-Present); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
|
Terri L. McKinney
(1963) |
Vice President
since 2010 |
Vice President
since 2017 |
Senior Vice President, (2021-Present) Vice President, (2009-2021), American Beacon Advisors, Inc.; Senior Vice President (2021-Present), Vice President (2017-2021), Resolute Investment Managers, Inc.; Senior Vice President (2021-Present), Vice President (2018-2021), Resolute Investment Services, Inc.; Vice President, Alpha Quant Advisors, LLC (2016-2020); Vice President, Continuous Capital, LLC (2018-2022); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
|
Samuel J. Silver
(1963) |
Vice President
since 2011 |
Vice President
since 2017 |
Vice President (2011-Present), Chief Fixed Income Officer (2016-Present), American Beacon Advisors, Inc.; Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
|
Name and Year of Birth
|
Position and Length of Time Served on the American Beacon Funds and American Beacon Select Funds
|
Position and Length of Time Served on the American Beacon Institutional Funds Trust
|
Principal Occupation(s) and Directorships During Past 5 Years
|
Melinda G. Heika
(1961) |
Vice President
since 2021 |
Vice President
since 2021 |
Senior Vice President (2021-Present), Treasurer and CFO (2010-Present), American Beacon Advisors, Inc.; Treasurer, Resolute Topco, Inc. (2015-Present); Treasurer, Resolute Investment Holdings, LLC (2015-Present); Treasurer, Resolute Acquisition, Inc. (2015-Present); Senior Vice President (2021-Present), Treasurer and CFO (2017-Present), Resolute Investment Managers, Inc.; Senior Vice President (2021-Present), Treasurer and CFO (2017-Present), Resolute Investment Services, Inc.; Treasurer, American Private Equity Management, L.L.C. (2012-2024); Treasurer and CFO, Alpha Quant Advisors, LLC (2016-2020); Treasurer, Continuous Capital, LLC (2018-2022); Director (2014-Present), Vice President (2022-Present) and Treasurer (2014-2022), American Beacon Cayman Managed Futures Strategy Fund, Ltd.; Director and Vice President (2022-Present), and Treasurer (2018-2022), American Beacon Cayman TargetRisk Company, Ltd.; Director and Vice President, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Director and Vice President, American Beacon Cayman Trend Company, Ltd. (2023-Present); Principal Accounting Officer and Treasurer, American Beacon Funds (2010-2021); Principal Accounting Officer and Treasurer, American Beacon Select Funds (2010-2021); Principal Accounting Officer and Treasurer, American Beacon Institutional Funds Trust (2017-2021); Principal Accounting Officer and Treasurer (2018-2021), Vice President (2021), American Beacon Sound Point Enhanced Income Fund; Principal Accounting Officer and Treasurer (2018-2021), Vice President (2021), American Beacon Apollo Total Return Fund.
|
Gregory Stumm
(1981) |
Vice President
since 2022 |
Vice President
since 2022 |
Senior Vice President, American Beacon Advisors, Inc. (2022-Present); Senior Vice President, Resolute Investment Managers, Inc. (2022-Present); Senior Vice President, Resolute Investment Services, Inc. (2022-Present); President (2024-Present), Director and Senior Vice President (2022-2024), Resolute Investment Distributors, Inc.
|
Sonia L. Bates
(1956) |
Principal Accounting Officer and Treasurer
since 2021 |
Principal Accounting Officer and Treasurer
since 2021 |
Assistant Treasurer, American Beacon Advisors, Inc. (2023-Present); Vice President, Fund and Tax Reporting (2023-Present), Director, Fund and Tax Reporting (2011-2023), Resolute Investment Services, Inc; Assistant Treasurer, American Private Equity Management, L.L.C. (2012-2024); Treasurer, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2022-Present); Treasurer (2022-Present) and Assistant Treasurer (2018-2022), American Beacon Cayman TargetRisk Company, Ltd.; Treasurer, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Treasurer, American Beacon Cayman Trend Company, Ltd. (2023-Present); Assistant Treasurer (2018-2021), Principal Accounting Officer and Treasurer (2021), American Beacon Sound Point Enhanced Income Fund; Assistant Treasurer (2019-2021), Principal Accounting Officer and Treasurer (2021), American Beacon Apollo Total Return Fund; Assistant Treasurer, American Beacon Funds (2011-2021); Assistant Treasurer, American Beacon Select Funds (2011-2021); Assistant Treasurer, American Beacon Institutional Funds Trust (2017-2021).
|
Christina E. Sears
(1971) |
Chief Compliance Officer
since 2004 Assistant Secretary since 1999 |
Chief Compliance Officer and Assistant Secretary
since 2017 |
Chief Compliance Officer (2004-Present), Vice President (2019-Present), American Beacon Advisors, Inc.; Vice President, Resolute Investment Managers, Inc. (2017-Present); Vice President, Resolute Investment Distributors, Inc. (2017-Present); Vice President, Resolute Investment Services, Inc. (2019-Present); Chief Compliance Officer, American Private Equity Management, LLC (2012-2024); Chief Compliance Officer, Green Harvest Asset Management, LLC (2019-2021); Chief Compliance Officer, RSW Investments Holdings, LLC (2019-Present); Chief Compliance Officer (2016-2019), Vice President (2016-2020), Alpha Quant Advisors, LLC; Chief Compliance Officer (2018-2019), Vice President (2018-2022), Continuous Capital, LLC.; Chief Compliance Officer and Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Chief Compliance Officer and Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021).
|
Shelley L. Dyson
(1969) |
Assistant Treasurer
since 2021 |
Assistant Treasurer
since 2021 |
Fund Tax Director (2024-Present), Fund Tax Manager (2020-2024), Manager, Tax (2014-2020), Resolute Investment Services, Inc.; Assistant Treasurer, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2022-Present); Assistant Treasurer, American Beacon Cayman TargetRisk Company, Ltd (2022-Present); Assistant Treasurer, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Assistant Treasurer, American Beacon Cayman Trend Company, Ltd. (2023-Present); Assistant Treasurer, American Beacon Sound Point Enhanced Income Fund (2021); Assistant Treasurer, American Beacon Apollo Total Return Fund (2021).
|
Name and Year of Birth
|
Position and Length of Time Served on the American Beacon Funds and American Beacon Select Funds
|
Position and Length of Time Served on the American Beacon Institutional Funds Trust
|
Principal Occupation(s) and Directorships During Past 5 Years
|
Shelley D. Abrahams
(1974) |
Assistant Secretary
since 2008 |
Assistant Secretary
since 2017 |
Corporate Governance Manager (2023-Present), Senior Corporate Governance & Regulatory Specialist (2020-2023), Corporate Governance & Regulatory Specialist (2017-2020), Resolute Investment Services, Inc.; Assistant Secretary, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2022-Present); Assistant Secretary, American Beacon Cayman TargetRisk Company, Ltd (2022-Present); Assistant Secretary, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Assistant Secretary, American Beacon Cayman Trend Company, Ltd. (2023-Present); Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021).
|
Teresa A. Oxford
(1958) |
Assistant Secretary
since 2015 |
Assistant Secretary
since 2017 |
Deputy General Counsel (2024-Present), Assistant Secretary (2015-Present), Associate General Counsel (2015-2024), American Beacon Advisors, Inc.; Assistant Secretary (2018-2021) (2024-Present), Resolute Investment Distributors, Inc.; Deputy General Counsel (2024-Present), Assistant Secretary (2017-Present), Associate General Counsel (2017-2024), Resolute Investment Managers, Inc.; Deputy General Counsel (2024-Present), Assistant Secretary (2018-Present), Associate General Counsel (2018-2024), Resolute Investment Services, Inc.; Assistant Secretary (2016-2020), Alpha Quant Advisors, LLC; Assistant Secretary (2020-2022), Continuous Capital, LLC.; Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021).
|
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R6 CLASS
|
R5 CLASS
|
Investor CLASS
|
AMERICAN ENTERPRISE INV SVCS*
|
7.00%
|
||||||
707 2ND AVE S
|
|||||||
MINNEAPOLIS MN 55402-2405
|
|||||||
CHARLES SCHWAB & CO INC*
|
13.79%
|
22.77%
|
|||||
SPECIAL CUSTODY A/C FBO CUSTOMERS
|
|||||||
ATTN MUTUAL FUNDS
|
|||||||
211 MAIN STREET
|
|||||||
SAN FRANCISCO CA 94105-1901
|
|||||||
CHARLES SCHWAB & CO., INC.*
|
7.06%
|
||||||
SPECIAL CUSTODY ACCT FBO CUSTOMERS
|
|||||||
ATTN: MUTUAL FUNDS
|
|||||||
101 MONTGOMERY ST
|
|||||||
SAN FRANCISCO CA 94104-4151
|
|||||||
LPL FINANCIAL*
|
14.76%
|
20.90%
|
7.86%
|
||||
4707 EXECUTIVE DR
|
|||||||
SAN DIEGO CA 92121-3091
|
|||||||
MERRILL LYNCH PIERCE FENNER &*
|
9.01%
|
||||||
SMITH INC (HOUSE ACCOUNT)
|
|||||||
THE AMERICAN BEACON FUNDS
|
|||||||
4800 DEER LAKE DR EAST
|
|||||||
JACKSONVILLE FL 32246-6484
|
|||||||
MORGAN STANLEY SMITH BARNEY LLC*
|
5.58%
|
21.91%
|
|||||
FOR THE EXCLUSIVE BENE OF ITS CUST
|
|||||||
1 NEW YORK PLZ FL 12
|
|||||||
NEW YORK NY 10004-1965
|
|||||||
NATIONAL FINANCIAL SERVICES LLC*
|
43.68%
|
31.67%
|
10.00%
|
60.68%
|
|||
FOR EXCLUSIVE BENEFIT OF
|
|||||||
OUR CUSTOMERS
|
|||||||
ATTN MUTUAL FUNDS DEPT 4TH FLOOR
|
|||||||
499 WASHINGTON BLVD
|
|||||||
JERSEY CITY NJ 07310-1995
|
|||||||
PERSHING LLC*
|
20.76%
|
41.77%
|
27.63%
|
12.17%
|
|||
1 PERSHING PLZ
|
|||||||
JERSEY CITY NJ 07399-0001
|
|||||||
RAYMOND JAMES*
|
21.30%
|
6.04%
|
6.25%
|
||||
OMNIBUS FOR MUTUAL FUNDS
|
|||||||
ATTN COURTNEY WALLER
|
|||||||
880 CARILLON PKWY
|
|||||||
ST PETERSBURG FL 33716-1100
|
|||||||
WELLS FARGO CLEARING SERVICES LLC*
|
7.32%
|
||||||
SPECIAL CUSTODY ACCT FOR THE
|
|||||||
EXCLUSIVE BENEFIT OF CUSTOMERS
|
|||||||
2801 MARKET ST
|
|||||||
SAINT LOUIS MO 63103-2523
|
|||||||
ARVEST BANK - TRUST DIVISION*
|
5.13%
|
||||||
PO BOX 1156
|
|||||||
BARTLESVILLE OK 74005-1156
|
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R6 CLASS
|
R5 CLASS
|
Investor CLASS
|
ASCENSUS TRUST COMPANY FBO
|
6.52%
|
||||||
ITI 401K PLAN 203380
|
|||||||
P.O. BOX 10758
|
|||||||
FARGO ND 58106-0758
|
|||||||
BAND & CO*
|
40.04%
|
48.30%
|
|||||
C/O US BANK NA
|
|||||||
PO BOX 1787
|
|||||||
MILWAUKEE WI 53201-1787
|
|||||||
EMPOWER TRUST FBO*
|
36.34%
|
5.10%
|
|||||
EMPLOYEE BENEFIT CLIENTS 401K
|
|||||||
8515 E ORCHARD RD 2T2
|
|||||||
GREENWOOD VILLAGE CO 80111-5002
|
|||||||
LINCOLN RETIREMENT SERVICES COMPANY
|
8.40%
|
||||||
FBO ONEBLOOD 403(B) RETIREMENT PLAN
|
|||||||
PO BOX 7876
|
|||||||
FORT WAYNE IN 46801-7876
|
|||||||
VOYA RETIREMENT INSURANCE & ANNUITY*
|
5.25%
|
||||||
COMPANY
|
|||||||
ATTN MICHAEL KAMINSKI
|
|||||||
1 ORANGE WAY
|
|||||||
WINDSOR CT 06095-4773
|
* | Denotes record owner of Fund shares only |
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R6 CLASS
|
R5 CLASS
|
Investor CLASS
|
CHARLES SCHWAB & CO INC*
|
11.30%
|
22.10%
|
|||||
SPECIAL CUST A/C
|
|||||||
EXCLUSIVE BENEFIT OF CUSTOMERS
|
|||||||
ATTN MUTUAL FUNDS
|
|||||||
211 MAIN ST
|
|||||||
SAN FRANCISCO CA 94105-1901
|
|||||||
CHARLES SCHWAB & CO., INC.*
|
26.83%
|
47.46%
|
15.67%
|
||||
SPECIAL CUSTODY ACCT FBO CUSTOMERS
|
|||||||
ATTN: MUTUAL FUNDS
|
|||||||
101 MONTGOMERY ST
|
|||||||
SAN FRANCISCO CA 94104-4151
|
|||||||
EDWARD D JONES & CO*
|
35.71%
|
||||||
FOR THE BENEFIT OF CUSTOMERS
|
|||||||
12555 MANCHESTER RD
|
|||||||
SAINT LOUIS MO 63131-3710
|
|||||||
LPL FINANCIAL*
|
8.38%
|
12.70%
|
17.37%
|
||||
4707 EXECUTIVE DR
|
|||||||
SAN DIEGO CA 92121-3091
|
|||||||
MORGAN STANLEY SMITH BARNEY LLC*
|
77.42%
|
||||||
FOR THE EXCLUSIVE BENE OF ITS CUST
|
|||||||
1 NEW YORK PLZ FL 12
|
|||||||
NEW YORK NY 10004-1965
|
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R6 CLASS
|
R5 CLASS
|
Investor CLASS
|
NATIONAL FINANCIAL SERVICES LLC*
|
17.20%
|
7.40%
|
22.69%
|
65.52%
|
|||
FOR EXCLUSIVE BENEFIT OF
|
|||||||
OUR CUSTOMERS
|
|||||||
ATTN MUTUAL FUNDS DEPT 4TH FLOOR
|
|||||||
499 WASHINGTON BLVD
|
|||||||
JERSEY CITY NJ 07310-1995
|
|||||||
PERSHING LLC*
|
10.24%
|
25.66%
|
13.13%
|
||||
1 PERSHING PLZ
|
|||||||
JERSEY CITY NJ 07399-0001
|
|||||||
RAYMOND JAMES*
|
24.35%
|
8.29%
|
9.49%
|
||||
OMNIBUS FOR MUTUAL FUNDS
|
|||||||
ATTN COURTNEY WALLER
|
|||||||
880 CARILLON PKWY
|
|||||||
ST PETERSBURG FL 33716-1100
|
|||||||
UBS WM USA*
|
13.35%
|
||||||
OMNI ACCOUNT M/F
|
|||||||
SPEC CDY A/C EBOC UBSFSI
|
|||||||
1000 HARBOR BLVD
|
|||||||
WEEHAWKEN NJ 07086-6761
|
|||||||
WELLS FARGO CLEARING SERVICES LLC*
|
18.00%
|
||||||
SPECIAL CUSTODY ACCT FOR THE
|
|||||||
EXCLUSIVE BENEFIT OF CUSTOMERS
|
|||||||
2801 MARKET ST
|
|||||||
SAINT LOUIS MO 63103-2523
|
|||||||
EMPOWER TRUST FBO
|
5.47%
|
||||||
H B FULLER COMPANY 401K & RETIREMEN
|
|||||||
8515 E ORCHARD RD 2T2
|
|||||||
GREENWOOD VILLAGE CO 80111-5002
|
|||||||
MATRIX TRUST COMPANY TRUSTEE FBO
|
10.83%
|
||||||
RETIREMENT ADVOCATE AGGRESSIVE FUND
|
|||||||
PO BOX 52129
|
|||||||
PHOENIX AZ 85072-2129
|
|||||||
MATRIX TRUST COMPANY TRUSTEE FBO
|
12.19%
|
||||||
RETIREMENT ADVOCATE MODERATE AGGRES
|
|||||||
PO BOX 52129
|
|||||||
PHOENIX AZ 85072-2129
|
|||||||
MATRIX TRUST COMPANY TRUSTEE FBO
|
7.71%
|
||||||
RETIREMENT ADVOCATE MODERATE FUND
|
|||||||
PO BOX 52129
|
|||||||
PHOENIX AZ 85072-2129
|
|||||||
MUIR & CO 3*
|
13.50%
|
||||||
C/O FROST BANK TRUST DEPT
|
|||||||
PO BOX 2950
|
|||||||
SAN ANTONIO TX 78299-2950
|
|||||||
NABANK & CO.*
|
13.70%
|
||||||
PO BOX 2180
|
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R6 CLASS
|
R5 CLASS
|
Investor CLASS
|
TULSA OK 74101-2180
|
|||||||
NATIONWIDE TRUST COMPANY, FSB
|
8.47%
|
||||||
NTC-PLNS
|
|||||||
FBO PARTICIPATING RETIREMENT PLANS
|
|||||||
C/O IPO PORTFOLIO ACCOUNTING
|
|||||||
P.O. BOX 182029
|
|||||||
COLUMBUS OH 43218-2029
|
* | Denotes record owner of Fund shares only |
Stephens Investment Management Group, LLC (“Stephens”)
|
||
Controlling Person/Entity
|
Basis of Control
|
Nature of Controlling Person/Entity’s Business
|
Stephens Investments Holdings LLC
|
Owner of all Voting Shares
|
Financial Services
|
Joseph Warren Simpson
|
Officer and Member Board of Managers
|
Financial Services
|
Ryan Edward Crane
|
Officer and Member Board of Managers
|
Financial Services
|
Michael William Nolte
|
Officer and Member Board of Managers
|
Financial Services
|
Todd Ferguson
|
Officer
|
Financial Services
|
Controlling Person/Entity
|
Basis of Control
|
Nature of Controlling Person/Entity’s Business
|
Resolute Topco, Inc.
|
Parent Company
|
Holding Company – Founded in 2015
|
First $5 billion
|
0.35%
|
Next $5 billion
|
0.325%
|
Next $10 billion
|
0.30%
|
Over $20 billion
|
0.275%
|
■
|
complying with reporting requirements;
|
■
|
corresponding with shareholders;
|
■
|
maintaining internal bookkeeping, accounting and auditing services and records;
|
■
|
supervising the provision of services to the Trust by third parties; and
|
■
|
administering the interfund lending facility and lines of credit, if applicable.
|
Management Fees Paid to American Beacon Advisors, Inc. (Gross)
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Stephens Mid-Cap Growth Fund
|
$2,600,172
|
$1,995,904
|
$1,977,680
|
American Beacon Stephens Small Cap Growth Fund
|
$1,538,110
|
$1,174,478
|
$1,027,377
|
Sub-Advisor Fees (Gross)
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Stephens Mid-Cap Growth Fund
|
$3,348,988
|
$2,557,631
|
$2,539,982
|
0.45%
|
0.45%
|
0.45%
|
|
American Beacon Stephens Small Cap Growth Fund
|
$2,519,618
|
$1,940,976
|
$1,711,291
|
0.57%
|
0.57%
|
0.57%
|
Management Fees (Waived)/Recouped
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Stephens Mid-Cap Growth Fund
|
$(3,910)
|
$0
|
$0
|
American Beacon Stephens Small Cap Growth Fund
|
$(63,175)
|
$(128,726)
|
$(131,103)
|
Sub-Advisor Fees (Waived)
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Stephens Mid-Cap Growth Fund
|
$0
|
$0
|
$0
|
American Beacon Stephens Small Cap Growth Fund
|
$0
|
$0
|
$0
|
A Class
|
|
Fund
|
Distribution Fee
|
American Beacon Stephens Mid-Cap Growth Fund
|
$14,369
|
American Beacon Stephens Small Cap Growth Fund
|
$55,476
|
C Class
|
|
Fund
|
Distribution Fee
|
American Beacon Stephens Mid-Cap Growth Fund
|
$19,627
|
American Beacon Stephens Small Cap Growth Fund
|
$4,467
|
A Class
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Stephens Mid-Cap Growth Fund
|
$0
|
$4,556
|
$14,956
|
American Beacon Stephens Small Cap Growth Fund
|
$4,474
|
$31,628
|
$41,168
|
C Class
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Stephens Mid-Cap Growth Fund
|
$1,898
|
$1,567
|
$1,510
|
American Beacon Stephens Small Cap Growth Fund
|
$657
|
$370
|
$483
|
Investor Class
|
|||
Fund
|
2021
|
2022
|
2023
|
American Beacon Stephens Mid-Cap Growth Fund
|
$42,394
|
$92,555
|
$87,905
|
American Beacon Stephens Small Cap Growth Fund
|
$256,251
|
$96,445
|
$37,949
|
Fund
|
2021
|
2022
|
2023
|
American Beacon Stephens Mid-Cap Growth Fund
|
$1,658
|
$3,075
|
$2,128
|
American Beacon Stephens Small Cap Growth Fund
|
$1,936
|
$3,415
|
$1,972
|
American Beacon Stephens Mid-Cap Growth Fund
|
American Beacon Stephens Small Cap Growth Fund
|
|
Gross income earned by the fund from securities lending activities
|
$27,225
|
$49,440
|
Fees and/or compensation paid by the fund for securities lending activities and related services:
|
||
Fees paid to securities lending agent from a revenue split
|
$2,128
|
$1,972
|
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split
|
$161
|
$610
|
Administrative fees not included in revenue split
|
$0
|
$0
|
Indemnification fee not included in revenue split
|
$0
|
$0
|
Rebate (paid to borrower)
|
$5,668
|
$28,741
|
Other fees not included in revenue split (administrative and oversight functions provided by the Manager)
|
$2,128
|
$1,972
|
Aggregate fees/compensation paid by the fund for securities lending activities
|
$10,085
|
$33,295
|
Net income from securities lending activities
|
$17,140
|
$16,145
|
American Beacon Funds
|
Sales Charge Revenue
|
Deferred Sales Charge Revenue
|
|||
Fiscal Year
|
Amount Paid to Distributor
|
Amount Retained by Distributor
|
Amount Paid to Distributor
|
Amount Retained by Distributor
|
|
American Beacon Stephens Mid-Cap Growth Fund
|
2023
|
$4,688
|
$737
|
$0
|
$0
|
2022
|
$7,626
|
$1,631
|
$0
|
$0
|
|
2021
|
$10,427
|
$2,542
|
$229
|
$0
|
|
American Beacon Stephens Small Cap Growth Fund
|
2023
|
$3,381
|
$629
|
$0
|
$0
|
2022
|
$1,010
|
$147
|
$0
|
$0
|
|
2021
|
$7,383
|
$1,209
|
$100
|
$0
|
Number of Other Accounts Managed and Assets by Account Type
|
Number of Accounts and Assets for Which Advisory Fee is Performance-Based
|
|||||
Name of Investment Advisor and Portfolio Manager
|
Registered Investment Companies
|
Other Pooled Investment Vehicles
|
Other Accounts
|
Registered Investment Companies
|
Other Pooled Investment Vehicles
|
Other Accounts
|
Stephens Investment Management Group, LLC
|
||||||
Ryan E. Crane
|
2 ($849.5 mil)
|
1 ($22.6 mil)
|
59 ($1.9 bil)
|
1 ($3.2 bil)
|
None
|
None
|
John M. Thornton
|
2 ($849.5 mil)
|
1 ($22.6 mil)
|
59 ($1.9 bil)
|
1 ($3.2 bil)
|
None
|
None
|
Kelly Ranucci
|
2 ($849.5 mil)
|
1 ($22.6 mil)
|
59 ($1.9 bil)
|
1 ($3.2 bil)
|
None
|
None
|
Samuel M. Chase III
|
2 ($849.5 mil)
|
1 ($22.6 mil)
|
59 ($1.9 bil)
|
1 ($3.2 bil)
|
None
|
None
|
John Keller
|
2 ($849.5 mil)
|
1 ($22.6 mil)
|
59 ($1.9 bil)
|
1 ($3.2 bil)
|
None
|
None
|
Name of Investment Advisor and Portfolio Manager
|
American Beacon Stephens Mid-Cap Growth Fund
|
American Beacon Stephens Small Cap Growth Fund
|
Stephens Investment Management Group, LLC
|
||
Ryan E. Crane
|
Over $1,000,000
|
Over $1,000,000
|
John M. Thornton
|
$500,001-$1,000,000
|
$500,001-$1,000,000
|
Kelly Ranucci
|
Over $1,000,000
|
$500,001-$1,000,000
|
Samuel M. Chase III
|
$100,001-$500,000
|
$100,001-$500,000
|
John Keller
|
$100,001-$500,000
|
$100,001-$500,000
|
American Beacon Fund
|
2021
|
2022
|
2023
|
American Beacon Stephens Mid-Cap Growth
|
$109,308
|
$130,346
|
$81,288
|
American Beacon Stephens Small Cap Growth
|
$138,884
|
$181,613
|
$78,708
|
American Beacon Fund
|
Amounts Directed
|
Amounts Paid in Commissions
|
American Beacon Stephens Mid-Cap Growth Fund
|
$182,887,736
|
$73,062
|
American Beacon Stephens Small Cap Growth Fund
|
$62,503,673
|
$56,252
|
Regular Broker-Dealers
|
American Beacon Fund
|
Aggregate Value of Securities (000s)
|
Piper Sandler Companies
|
Stephens Small Cap Growth
|
$3,643
|
■
|
individual-type employee benefit plans, such as an IRA, individual 403(b) plan or single-participant Keogh-type plan;
|
■
|
business accounts solely controlled by you or your immediate family (for example, you own the entire business);
|
■
|
trust accounts established by you or your immediate family (for trusts with only one primary beneficiary, upon the trustor’s death the trust account may be aggregated with such beneficiary’s own accounts; for trusts with multiple primary beneficiaries, upon the trustor’s death the trustees of the trust may instruct the Funds’ transfer agent to establish separate trust accounts for each primary beneficiary; each primary beneficiary’s separate trust account may then be aggregated with such beneficiary’s own accounts);
|
■
|
endowments or foundations established and controlled by you or your immediate family; or
|
■
|
529 accounts, which will be aggregated at the account owner level (Class 529-E accounts may only be aggregated with an eligible employer plan).
|
■
|
for a single trust estate or fiduciary account, including employee benefit plans other than the individual-type employee benefit plans described above;
|
■
|
made for two or more employee benefit plans of a single employer or of affiliated employers as defined in the Investment Company Act, excluding the individual-type employee benefit plans described above;
|
■
|
for nonprofit, charitable or educational organizations, or any endowments or foundations established and controlled by such organizations, or any employer-sponsored retirement plans established for the benefit of the employees of such organizations, their endowments, or their foundations; or
|
■
|
for individually established participant accounts of a 403(b) plan that is treated similarly to an employer-sponsored plan for sales charge purposes (see “Purchases by certain 403(b) plans” under “Sales Charges” above), or made for two or more such 403(b) plans that are treated similarly to employer-sponsored plans for sales charge purposes, in each case of a single employer or affiliated employers as defined in the Investment Company Act. Purchases made for nominee or street name accounts (securities held in the name of a broker-dealer or another nominee such as a bank trust department instead of the customer) may not be aggregated with those made for other accounts and may not be aggregated with other nominee or street name accounts unless otherwise qualified as described above.
|
1 | current or retired trustees, and officers of the American Beacon Funds family, current or retired employees and directors of the Manager and its affiliated companies, certain family members and employees of the above persons, and trusts or plans primarily for such persons; |
2 | currently registered representatives and assistants directly employed by such representatives, retired registered representatives with respect to accounts established while active, or full-time employees (collectively, “Eligible Persons”) (and their spouses, and children, including children in step and adoptive relationships, sons-in-law and daughters-in-law, if the Eligible Persons or the spouses or children of the Eligible Persons are listed in the account registration with the spouse or parent) of broker-dealers who have sales agreements with the Distributor (or who clear transactions through such dealers), plans for the dealers, and plans that include as participants only the Eligible Persons, their spouses and/or children; |
3 | companies exchanging securities with the Funds through a merger, acquisition or exchange offer; |
4 | insurance company separate accounts; |
5 | accounts managed by the Manager, a sub-advisor to the Funds and their affiliated companies; |
6 | the Manager or a sub-advisor to the Funds and their affiliated companies; |
7 | an individual or entity with a substantial business relationship with, which may include the officers and employees of the Funds’ custodian or transfer agent, the Manager or a sub-advisor to the Funds and their affiliated companies, or an individual or entity related or relating to such individual or entity; |
8 | full-time employees of banks that have sales agreements with the Distributor, who are solely dedicated to directly supporting the sale of mutual funds; |
9 | directors, officers and employees of financial institutions that have a selling group agreement with the Distributor; |
10 | banks, broker-dealers and other financial institutions (including registered investment advisors and financial planners) that have entered into an agreement with the Distributor or one of its affiliates, purchasing shares on behalf of clients participating in a fund supermarket or in a wrap program, asset allocation program or other program in which the clients pay an asset-based fee; |
11 | clients of authorized dealers purchasing shares in fixed or flat fee brokerage accounts; |
12 | Employer-sponsored defined contribution - type plans, including 401(k) plans, 457 plans, employer sponsored 403(b) plans, profit-sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans, and IRA rollovers involving retirement plan assets invested in a Fund in the American Beacon Funds fund family; and |
13 | Employee benefit and retirement plans for the Manager and its affiliates. |
■
|
redemption proceeds from a non-retirement account (for example, a joint tenant account) used to purchase Fund shares in an IRA or other individual-type retirement account;
|
■
|
“required minimum distributions” (as described in Section 401(a)(9) of the Internal Revenue Code) from an IRA or other individual-type retirement account used to purchase Fund shares in a non-retirement account; and
|
■
|
death distributions paid to a beneficiary’s account that are used by the beneficiary to purchase Fund shares in a different account.
|
■
|
Any partial or complete redemption following death or “disability” (as defined in the Internal Revenue Code) of a shareholder (including one who owns the shares with his or her spouse as a joint tenant with rights of survivorship) from an account in which the deceased or disabled is named. The Manager or a Fund’s transfer agent may require documentation prior to waiver of the charge, including death certificates, physicians’ certificates, etc.
|
■
|
Redemptions from a systematic withdrawal plan. If the systematic withdrawal plan is based on a fixed dollar amount or number of shares, systematic withdrawal redemptions are limited to no more than 10% of your account value or number of shares per year, as of the date the Manager or a Fund’s transfer agent receives your request. If the systematic withdrawal plan is based on a fixed percentage of your account value, each redemption is limited to an amount that would not exceed 10% of your annual account value at the time of withdrawal.
|
■
|
Redemptions from retirement plans qualified under Section 401 of the Internal Revenue Code. The CDSC will be waived for benefit payments made by American Beacon Funds directly to plan participants. Benefit payments include, but are not limited to, payments resulting from death, “disability,” “retirement,” “separation from service” (each as defined in the Internal Revenue Code), “required minimum distributions” (as described in Section 401(a)(9) of the Internal Revenue Code), in-service distributions, hardships, loans and qualified domestic relations orders. The CDSC waiver will not apply in the event of termination of the plan or transfer of the plan to another financial institution.
|
■
|
Redemptions that are required minimum distributions from a traditional IRA as required by the Internal Revenue Service.
|
■
|
Involuntary redemptions as a result of your account not meeting the minimum balance requirements, the termination and liquidation of the Fund, or other actions by the Fund.
|
■
|
Distributions from accounts for which the broker-dealer of record has entered into a written agreement with the Distributor (or Manager) allowing this waiver.
|
■
|
To return excess contributions made to a retirement plan.
|
■
|
To return contributions made due to a mistake of fact.
|
■
|
Derive at least 90% of its gross income each taxable year from (1) dividends, interest, payments with respect to securities loans and gains from the sale or other disposition of securities or foreign currencies, or other income, including gains from options, futures or forward contracts, derived with respect to its business of investing in securities or those currencies (“Qualifying Income”) and (2) net income derived from an interest in a “qualified publicly traded partnership” (“QPTP”) (“Gross Income Requirement”). A QPTP is a “publicly traded partnership” (that is, a partnership the interests in which are “traded on an established securities market” or “readily tradable on a secondary market (or the substantial equivalent thereof)” (a “PTP”)) that meets certain qualifying income requirements other than a partnership at least 90% of the gross income of which is Qualifying Income;
|
■
|
Diversify its investments so that, at the close of each quarter of its taxable year, (1) at least 50% of the value of its total assets is represented by cash and cash items, Government securities, securities of other RICs, and other securities, with those other securities limited, in respect of any one issuer, to an amount that does not exceed 5% of the value of the Fund’s total assets and that does not represent more than 10% of the issuer’s outstanding voting securities (equity securities of QPTPs being considered voting securities for these purposes), and (2) not more than 25% of the value of its total assets is invested in (a) the securities (other than Government securities or securities of other RICs) of any one issuer, (b) the securities (other than securities of other RICs) of two or more issuers the Fund controls (by owning 20% or more of their voting power) that are determined to be engaged in the same, similar or related trades or businesses, or (c) the securities of one or more QPTPs (“Diversification Requirements”); and
|
■
|
Distribute annually to its shareholders at least the sum of 90% of its investment company taxable income (generally, net investment income, the excess (if any) of net short-term capital gain over net long-term capital loss, and net gains and losses (if any) from certain foreign currency transactions, all determined without regard to any deduction for dividends paid) and 90% of its net exempt interest income (“Distribution Requirement”).
|
(i) consider the reasons for voting in a manner different from the ISS recommendation;
|
(ii) consider whether there is a material conflict of interest between SIMG and its advisory clients or between the third party proxy advisory firm and any person that would make it inappropriate for the Proxy Committee to vote in a manner different from the ISS recommendations;
|
(iii) exercise its judgment to vote the Proxy in the best interests of SIMG’s investment advisory clients; and
|
(iv) create and maintain a written record reflecting the basis for its judgment as to such Proxy vote.
|
■
|
whether or not proxies have been voted in SIMG client best interests and in accordance with SIMG’s proxy voting policy;
|
■
|
whether or not any conflict of interest was identified in connection with proxy voting;
|
■
|
whether or not any business changes or other factors have influenced SIMG’s third party proxy advisory firm’s continued effectiveness and independence;
|
■
|
whether or not SIMG’s proxy advisory firm continues to have the capacity, the systems, technology, controls, staffing and expertise to evaluate relevant company related issues;
|
■
|
whether SIMG’s proxy advisory firm has an effective process for seeking timely input from issuers and its own clients with respect to its proxy voting policies, methodologies and peer group constructions (including say-on-pay votes).
|
■
|
whether SIMG’s proxy advisory firm has adequately disclosed its methodologies in formulating voting recommendations such that the SIMG can understand the factors underlying the proxy advisory firm’s voting recommendations; and
|
■
|
how SIMG’s proxy advisory firm addresses conflicts of interest
|
Exercise of Voting Power. For purposes of this policy, voting power means the ability, through any contract, arrangement, understanding or relationship, to vote a security or direct the voting of a security. Voting power also includes the ability to determine whether or not to vote a security and whether or not to recall any loaned securities prior to a say-on-pay proxy vote. The exercise of voting power means using voting power to influence a voting decision with respect to a security. SIMG does not exercise voting power if voting decisions are dictated by a client or SIMG does not exercise any judgment in determining how to apply a client’s voting policies or otherwise influence a client’s voting decision.
|
In the event SIMG exercises voting power over securities alongside one or more other Institutional Managers, only one such Institutional Manager must include the information regarding that proxy vote on its report on Form N-PX. For the purposes of this policy, Institutional Manager means a person that is required to file Form 13F. In such event, SIMG shall coordinate with the other Institutional Manager(s) to determine which Institutional Manager will report the proxy vote on its Form N-PX. If an Institutional Manager other than SIMG reports on its Form N-PX proxy votes over which SIMG exercised voting power, SIMG shall identify in its Form N-PX filing the Institutional Manager reporting on its behalf.
|
Covered Securities. In years in which SIMG is required to file Form 13F, SIMG is required to report data regarding all securities over which it exercises voting power regarding say-on-pay proxy votes. Such data is not limited to securities that are reportable on Form 13F. There is no de minimis exception to reporting requirements in terms of position size or a minimum amount of time SIMG must hold securities for its proxy votes to be reportable. Rather, the triggering event for inclusion in the Form N-PX report is the exercise of voting power.
|
Scope of Say-on-Pay Votes. Say-on-pay issues for which SIMG must report proxy voting data include the following:
|
1 | Approval of compensation for named executive officers; |
2 | The frequency of such executive compensation approval votes; and |
3 | So-called “golden parachute” compensation in connection with a merger or acquisition. |
Say-on-Pay Data Collection. SIMG shall identify and contract with a service provider for the collection of all data it is required to report on Form N-PX. Specifically, the service provider shall gather the following data regarding say-on-pay proxy votes for which SIMG has exercised voting power:
|
1 | A description of say-on-pay matters using the same language that is on an issuer’s form of proxy, and listed in the same order as on the issuer’s form of proxy; |
2 | The category of proxy vote according to the SEC’s standardized classification system; |
3 | The number of securities voted; |
4 | How the securities were voted (for, against, or abstain); and |
5 | The number of securities the manager had out on loan but did not recall. |
With respect to item two in the list above, the SEC has published a list of 14 standard categories by which to classify proxy votes as follows. Since SIMG is only required to report its say-on-pay proxy votes, however, all reportable votes should be classified as falling within category B for Section 14A say-on-pay votes.
|
Annual Reporting on Form N-PX. SIMG shall file Form N-PX reporting all required say-on-pay proxy voting information for the period July 1, 2023 through June 30, 2024, no later than August 31, 2024. Thereafter, SIMG shall file Form N-PX no later than August 31 of each year, for the most recent 12-month period ending June 30. All Form N-PX reports must be submitted: 1) in the custom XML format dictated by the SEC; and 2) electronically using the SEC’s EDGAR filing system.
|
All information reported on Form N-PX is publicly available unless SIMG requests confidential treatment of such information. To seek confidential treatment of information reported on Form N-PX, SIMG must be able to demonstrate that the information is both customarily and actually kept private, and that failure to grant the request for confidential treatment would be likely to cause harm to SIMG.
|
Periodic Review of Form N-PX Service Provider(s). Annually, SIMG shall assess its Form N-PX service provider(s). In this review, SIMG shall consider and determine whether all say-on-pay proxy votes over which SIMG exercised voting power were accurately and timely reported in compliance with SEC requirements and whether the service provider(s) continues to demonstrate the technology, personnel, and other resources capable of assisting SIMG in meeting its regulatory obligations.
|
ADRs
|
American Depositary Receipts
|
Advisers Act
|
Investment Advisers Act of 1940, as amended
|
American Beacon or the Manager
|
American Beacon Advisors, Inc.
|
Beacon Funds
|
American Beacon Funds
|
Board
|
Board of Trustees
|
Capital Gains Distributions
|
Distributions of realized net capital gains
|
CCO
|
Chief Compliance Officer
|
CDSC
|
Contingent Deferred Sales Charge
|
CFTC
|
Commodity Futures Trading Commission
|
Covered Shares
|
Fund shares that the shareholder acquired or acquires after 2011
|
CPO
|
Commodity Pool Operator
|
Denial of Services
|
A cybersecurity incident that results in customers or employees being unable to access electronic systems
|
Dividends
|
Distributions from a Fund’s net investment income
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
DRD
|
Dividends-received deduction
|
ESG
|
Environmental, Social, and/or Governance
|
ETF
|
Exchange-Traded Fund
|
ETN
|
Exchange-Traded Note
|
EU
|
European Union
|
FINRA
|
Financial Industry Regulatory Authority, Inc.
|
Holdings Policy
|
Policies and Procedures for Disclosure of Portfolio Holdings
|
Internal Revenue Code
|
Internal Revenue Code of 1986, as amended
|
IPO
|
Initial Public Offering
|
IRA
|
Individual Retirement Account
|
IRS
|
Internal Revenue Service
|
ISS
|
Institutional Shareholder Services
|
LOI
|
Letter of Intent
|
Management Agreement
|
A Fund’s Management Agreement with the Manager
|
Manager
|
American Beacon Advisors, Inc.
|
MLP
|
Master Limited Partnership
|
Moody’s
|
Moody’s Investors Service, Inc.
|
NAV
|
Net asset value
|
NYSE
|
New York Stock Exchange
|
OID
|
Original Issue Discount
|
OTC
|
Over-the-Counter
|
Other Distributions
|
Distributions of net gains from foreign currency transactions
|
Proxy Policy
|
Proxy Voting Policy and Procedures
|
QDI
|
Qualified Dividend Income
|
REIT
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Real Estate Investment Trust
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REMICs
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Real Estate Mortgage Investment Conduits
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RIC
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Regulated Investment Company
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S&P Global
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S&P Global Ratings
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SAI
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Statement of Additional Information
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|
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SEC
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Securities and Exchange Commission
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Securities Act
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Securities Act of 1933, as amended
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State Street
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State Street Bank and Trust Co.
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STRIPS
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Separately traded registered interest and principal securities
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Trust
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American Beacon Funds
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Trustee Retirement Plan
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Trustee Retirement and Trustee Emeritus and Retirement Plan
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UK
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United Kingdom
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Voluntary Action
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When a Fund voluntarily participates in corporate actions (for example, rights offerings, conversion privileges, exchange offers, credit event settlements, etc.) where the issuer or counterparty offers securities or instruments to holders or counterparties, such as the Fund, and the acquisition is determined to be beneficial to Fund shareholders.
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American Beacon
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Share Class
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|||||
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A
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C
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Y
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R6
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R5
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Investor
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American Beacon AHL Managed Futures Strategy Fund
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AHLAX
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AHLCX
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AHLYX
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AHLIX
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AHLPX
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American Beacon AHL Multi-Alternatives Fund
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AHMAX
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AHMCX
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AHMYX
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AHMRX
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|
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American Beacon AHL TargetRisk Fund
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AHTAX
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AHACX
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AHTYX
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AHTIX
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AHTPX
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Back Cover
|
|
American Beacon
AHL Managed Futures Strategy 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 Expenses2
|
%
|
%
|
%
|
%
|
%
|
Total Annual Fund Operating Expenses
|
%
|
%
|
%
|
%
|
%
|
1 |
2 | During the fiscal year ended |
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.
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■
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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). Government bond futures contracts, such as 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. Interest rate futures contracts expose the Fund to price fluctuations resulting from changes in interest rates. The Fund could suffer a loss if interest rates rise after the Fund has purchased an interest rate futures contract or fall after the Fund has sold an interest rate futures contract. 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. Futures contracts on bond and equity indices expose the Fund to volatility in an underlying index.
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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.
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■
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European Securities Risk. The Fund’s performance may be affected by political, social and economic conditions in Europe, such as growth of economic output (the gross national product of the countries in the region), the rate of inflation, the rate at which capital is reinvested into European economies, the success of governmental actions to reduce budget deficits, the resource self-sufficiency of European countries, the monetary exchange rates between European countries, and conflict between European countries. The European financial markets have experienced and may continue to experience volatility and adverse trends due to concerns relating to economic downturns; rising government debt levels and the possible default on government debt; national unemployment in several European countries; public health crises; political unrest; economic sanctions; inflation; energy crises; and war and military conflict, such as the Russian invasion of Ukraine. A default or debt restructuring by any European country could adversely impact holders of that country’s debt and sellers of credit default swaps linked to that country’s creditworthiness, which may be located in other countries. Such a default or debt restructuring could affect exposures to European countries. In addition, issuers have faced difficulties obtaining credit or refinancing existing obligations, and financial markets have experienced extreme volatility and declines in asset values and liquidity. These events have affected the exchange rate of the Euro and may continue to significantly affect European countries.
|
Responses to financial problems by European governments, central banks, and others, including austerity measures and other reforms, may not produce the desired results, may result in social unrest and may limit future growth and economic recovery or may have unintended consequences. The Fund makes investments in securities of issuers that are domiciled in member states of the European Union (the “EU”). The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. One or more countries may abandon the Euro and/or withdraw from the EU. The impact of these actions, especially if they occur in a disorderly fashion, could be significant and far-reaching. The United Kingdom’s withdrawal from the EU could be an indication that one or more other countries may withdraw from the EU and/or abandon the Euro. These events and actions have affected, and may in the future affect, the value and exchange rate of the Euro and may continue to significantly affect the economies of every country in Europe, including countries that do not use the Euro and non-EU member states.
|
The continuing effects on the economies of European countries of the Russia/Ukraine war and Russia’s response to sanctions imposed by the U.S., EU, UK and others, are impossible to predict, but have been and could continue to be significant. For example, exports in Eastern Europe have been disrupted for certain key commodities, pushing commodity prices to record highs. Also, both wholesale energy prices and energy prices charged to consumers in Europe have increased significantly.
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Japan Investment Risk. The Japanese economy may be subject to economic, political and social instability, which could have an adverse effect on the Japanese securities held by the Fund. The Japanese economy, which is heavily dependent upon international trade, may be adversely affected by global competition, trade tariffs, other government interventions and protectionist measures, excessive regulation, changes in international trade agreements, the economic conditions of its trading partners, the performance of the global economy, and regional and global conflicts. Political tensions between Japan and its trading partners could adversely affect the economy, especially the export sector, and destabilize the region as a whole. The domestic Japanese economy faces several concerns, including large government deficits, a declining domestic population and low birth rate, workforce shortages, and inflation. The Japanese government’s fiscal and monetary policies may have negative impacts on the Japanese economy. Japan is also heavily dependent on oil and other commodity imports, and higher commodity prices could therefore have a negative impact on the Japanese economy. Currency fluctuations, which have been significant at times, can have a considerable impact on exports and the overall Japanese economy. The Japanese yen may be affected by currency volatility elsewhere in Asia, especially Southeast Asia. Japanese intervention in the currency markets could cause the value of the yen to fluctuate sharply and unpredictably and could cause losses to investors. Natural disasters such as earthquakes, volcanic eruptions, typhoons or tsunamis, could occur in Japan and surrounding areas and may have a significant impact on the business operations of Japanese companies in the affected regions and Japan’s economy. These and other factors could have a negative impact on the Fund’s performance and increase the volatility of an investment in the Fund.
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■
|
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 might increase or start decreasing, the timing, frequency or magnitude of any such changes in interest rates, or when such changes might stop or reverse course. 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 changes in interest rates could lead to significant 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.
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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.
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■
|
Government Money Market Funds Risk. Investments in government money market funds are subject to interest rate risk, credit risk, and market risk.
|
|
|
|
|
Inception Date of Class
|
1 Year
|
5 Years
|
Since Inception
|
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
|
Since Inception
|
Share Class (Before Taxes)
|
|
|
|
|
A
|
|
-
%
|
%
|
%
|
C
|
|
-
%
|
%
|
%*
|
Y
|
|
-
%
|
%
|
%
|
R5
|
|
-
%
|
%
|
%
|
* | The Since Inception 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 period since inception, performance would have been 3.89%. |
|
|
1 Year
|
5 Years
|
Since Inception
|
Index (Reflects no deduction for fees, expenses, or taxes)
|
|
|
|
|
ICE BofA US 3-Month Treasury Bill Index
|
|
%
|
%
|
%
|
AHL Partners LLP
|
Russell Korgaonkar
Chief Investment Officer Since Fund Inception (2014) |
Otto van Hemert
Director of Core Strategies Since 2021 |
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
AHL Multi-Alternatives FundSM |
Share Class
|
A
|
C
|
Y
|
R6
|
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
|
Management Fees
|
%
|
%
|
%
|
%
|
Distribution and/or Service (12b-1) Fees
|
%
|
%
|
%
|
%
|
Other Expenses2
|
%
|
%
|
%
|
%
|
Total Annual Fund Operating Expenses
|
%
|
%
|
%
|
%
|
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 A Class, C Class, Y Class, and R6 Class shares, as applicable, through |
Share Class
|
1 Year
|
3 Years
|
A
|
$
|
$
|
C
|
$
|
$
|
Y
|
$
|
$
|
R6
|
$
|
$
|
Share Class
|
1 Year
|
3 Years
|
C
|
$
|
$
|
(1) Managed Futures Strategy. The sub-advisor’s investment philosophy is that the financial markets exhibit trends and other inefficiencies. Trends are a manifestation of serial correlation in financial markets — the phenomenon whereby past price movements influence price behavior. Although price trends vary in intensity, duration, and frequency, they typically recur across sectors and markets. Trends are an attractive focus for active trading styles applied across a range of global markets. The sub-advisor implements a quantitative trading strategy and systematic investment process designed to capitalize on price trends (up and/or down) in a broad range of around 120 global markets by utilizing derivative instruments to seek exposure to stock indices, bonds, currencies and interest rates. The sub-advisor employs computerized processes to identify investment opportunities across a wide range of markets around the world. Investment decisions are executed via the sub-advisor’s proprietary execution strategy. The investment decision process is quantitative and primarily directional in nature, meaning that investment decisions are driven by mathematical models based on market trends and other historical relationships. It is underpinned by risk controls, ongoing research, and diversification guidelines. As the owner of a “long” position in a derivative instrument, the Fund may benefit from an increase in the price of the underlying investment, and as the owner of a “short” position, the Fund may benefit from a decrease in the price of the underlying investment.
|
The Managed Futures Strategy is designed to provide an excess return with a targeted level of volatility regardless of market conditions. The sub-advisor seeks to do this by using systematic algorithms (mathematical models). An algorithm measures the degree of volatility in a particular market. If the market is turbulent, and returns are volatile, the algorithm will reduce exposure. Conversely, it will increase exposure, subject to risk limits, if the market is calm and volatilities are decreasing. This technique is called ‘volatility scaling’ and can be applied at various levels to achieve a balanced risk exposure through time, and across different asset classes. Volatility scaling aims to achieve a certain target level of volatility which is stable through time. The Managed Futures Strategy has set an annualized volatility target of 10% of the Fund’s net asset value (“NAV”) invested in the strategy. Volatility is defined as the annualized standard deviation of returns. It is important to note that both the short and long term realized volatility of the Fund can and will differ from the targeted volatility and can be dependent on prevailing market conditions.
|
(2) TargetRisk Strategy. The sub-advisor allocates the Fund’s assets invested in the TargetRisk Strategy across equities, bonds (including inflation index-linked bonds), interest rates, corporate credit, and commodities primarily through derivative instruments utilizing a proprietary quantitative model. The TargetRisk Strategy is designed to provide an excess return with a targeted level of volatility regardless of market conditions. The sub-advisor seeks to do this using volatility scaling as described above. The TargetRisk Strategy has set an annualized volatility target of 10% of NAV invested in the strategy. In addition to volatility scaling, the TargetRisk Strategy utilizes additional systematic overlays to control downside risk. The first of these is a momentum overlay, which uses past price behavior to identify periods when a market is in a downtrend. The strategy uses this information to scale down positions depending upon the strength of that trend, thereby reducing risk in falling markets. The second overlay is a volatility switching mechanism, which reacts quickly to spikes in volatility by using a formula that is designed to minimize market transactions during periods of low volatility and increase market transactions during periods of heightened market volatility. The third overlay uses intraday data to identify dangerous environments in which fixed income assets no longer act as a hedge to equities and other assets. The combination of these overlays aims to reduce losses and improve risk-adjusted returns.
|
■
|
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). Government bond futures contracts, such as 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. Interest rate futures contracts expose the Fund to price fluctuations resulting from changes in interest rates. The Fund could suffer a loss if interest rates rise after the Fund has purchased an interest rate futures contract or fall after the Fund has sold an interest rate futures contract. 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. Futures contracts on bond and equity indices expose the Fund to volatility in an underlying index.
|
■
|
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:
|
■
|
Commodities swaps, which may be subject to commodities risk.
|
■
|
Credit default swaps, which may be subject to credit risk and the risks associated with the purchase and sale of credit protection.
|
■
|
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.
|
■
|
European Securities Risk. The Fund’s performance may be affected by political, social and economic conditions in Europe, such as growth of economic output (the gross national product of the countries in the region), the rate of inflation, the rate at which capital is reinvested into European economies, the success of governmental actions to reduce budget deficits, the resource self-sufficiency of European countries, the monetary exchange rates between European countries, and conflict between European countries. The European financial markets have experienced and may continue to experience volatility and adverse trends due to concerns relating to economic downturns; rising government debt levels and the possible default on government debt; national unemployment in several European countries; public health crises; political unrest; economic sanctions; inflation; energy crises; and war and military conflict, such as the Russian invasion of Ukraine. A default or debt restructuring by any European country could adversely impact holders of that country’s debt and sellers of credit default swaps linked to that country’s creditworthiness, which may be located in other countries. Such a default or debt restructuring could affect exposures to European countries. In addition, issuers have faced difficulties obtaining credit or refinancing existing obligations, and financial markets have experienced extreme volatility and declines in asset values and liquidity. These events have affected the exchange rate of the Euro and may continue to significantly affect European countries.
|
Responses to financial problems by European governments, central banks, and others, including austerity measures and other reforms, may not produce the desired results, may result in social unrest and may limit future growth and economic recovery or may have unintended consequences. The Fund makes investments in securities of issuers that are domiciled in member states of the European Union (the “EU”). The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. One or more countries may abandon the Euro and/or withdraw from the EU. The impact of these actions, especially if they occur in a disorderly fashion, could be significant and far-reaching. The United Kingdom’s withdrawal from the EU could be an indication that one or more other countries may withdraw from the EU and/or abandon the Euro. These events and actions have affected, and may in the future affect, the value and exchange rate of the Euro and may continue to significantly affect the economies of every country in Europe, including countries that do not use the Euro and non-EU member states.
|
The continuing effects on the economies of European countries of the Russia/Ukraine war and Russia’s response to sanctions imposed by the U.S., EU, UK and others, are impossible to predict, but have been and could continue to be significant. For example, exports in Eastern Europe have been disrupted for certain key commodities, pushing commodity prices to record highs. Also, both wholesale energy prices and energy prices charged to consumers in Europe have increased significantly.
|
■
|
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 might increase or start decreasing, the timing, frequency or magnitude of any such changes in interest rates, or when such changes might stop or reverse course. 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 changes in interest rates could lead to significant 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.
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■
|
Government Money Market Funds Risk. Investments in government money market funds are subject to interest rate risk, credit risk, and market risk.
|
AHL Partners LLP
|
Russell Korgaonkar
Chief Investment Officer Since Fund Inception (2023) |
Otto van Hemert
Director of Core Strategies Since Fund Inception (2023) |
|
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
|
$2,500
|
$50
|
$250
|
Y
|
$100,000
|
$50
|
None
|
R6
|
None
|
$50
|
None
|
American Beacon
AHL TargetRisk 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 Expenses2
|
%
|
%
|
%
|
%
|
%
|
Interest and Dividend Expense on Securities Sold Short
|
%
|
%
|
%
|
%
|
%
|
Remainder of Other Expenses
|
%
|
%
|
%
|
%
|
%
|
Total Annual Fund Operating Expenses
|
%
|
%
|
%
|
%
|
%
|
Fee Waiver and/or expense reimbursement3
|
(
%)
|
%
|
%
|
(
%)
|
%
|
Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement
|
%
|
%
|
%
|
%
|
%
|
1 |
2 | During the fiscal year ended December 31, 2023, the Fund paid amounts to American Beacon Advisors, Inc. (the “Manager”) that were previously waived and/or reimbursed by the Manager under a contractual fee waiver/expense reimbursement agreement for the Fund’s R5 Class shares in the amount of 0.01%. |
3 | The Manager has contractually agreed to waive fees and/or reimburse expenses of the Fund’s A Class and R5 Class shares, 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). Government bond futures contracts, such as 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. Interest rate futures contracts expose the Fund to price fluctuations resulting from changes in interest rates. The Fund could suffer a loss if interest rates rise after the Fund has purchased an interest rate futures contract or fall after the Fund has sold an interest rate futures contract. 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. Futures contracts on bond and equity indices expose the Fund to volatility in an underlying index.
|
■
|
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:
|
■
|
Commodities swaps, which may be subject to commodities risk.
|
■
|
Credit default swaps, which may be subject to credit risk and the risks associated with the purchase and sale of credit protection.
|
■
|
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.
|
■
|
European Securities Risk. The Fund’s performance may be affected by political, social and economic conditions in Europe, such as growth of economic output (the gross national product of the countries in the region), the rate of inflation, the rate at which capital is reinvested into European economies, the success of governmental actions to reduce budget deficits, the resource self-sufficiency of European countries, the monetary exchange rates between European countries, and conflict between European countries. The European financial markets have experienced and may continue to experience volatility and adverse trends due to concerns relating to economic downturns; rising government debt levels and the possible default on government debt; national unemployment in several European countries; public health crises; political unrest; economic sanctions; inflation; energy crises; and war and military conflict, such as the Russian invasion of Ukraine. A default or debt restructuring by any European country could adversely impact holders of that country’s debt and sellers of credit default swaps linked to that country’s creditworthiness, which may be located in other countries. Such a default or debt restructuring could affect exposures to European countries. In addition, issuers have faced difficulties obtaining credit or refinancing existing obligations, and financial markets have experienced extreme volatility and declines in asset values and liquidity. These events have affected the exchange rate of the Euro and may continue to significantly affect European countries.
|
Responses to financial problems by European governments, central banks, and others, including austerity measures and other reforms, may not produce the desired results, may result in social unrest and may limit future growth and economic recovery or may have unintended consequences. The Fund makes investments in securities of issuers that are domiciled in member states of the European Union (the “EU”). The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. One or more countries may abandon the Euro and/or withdraw from the EU. The impact of these actions, especially if they occur in a disorderly fashion,
|
could be significant and far-reaching. The United Kingdom’s withdrawal from the EU could be an indication that one or more other countries may withdraw from the EU and/or abandon the Euro. These events and actions have affected, and may in the future affect, the value and exchange rate of the Euro and may continue to significantly affect the economies of every country in Europe, including countries that do not use the Euro and non-EU member states.
|
The continuing effects on the economies of European countries of the Russia/Ukraine war and Russia’s response to sanctions imposed by the U.S., EU, UK and others, are impossible to predict, but have been and could continue to be significant. For example, exports in Eastern Europe have been disrupted for certain key commodities, pushing commodity prices to record highs. Also, both wholesale energy prices and energy prices charged to consumers in Europe have increased significantly.
|
■
|
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 might increase or start decreasing, the timing, frequency or magnitude of any such changes in interest rates, or when such changes might stop or reverse course. 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 changes in interest rates could lead to significant 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.
|
|
|
|
|
Inception Date of Class
|
1 Year
|
5 Years
|
Since Inception
|
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
|
Since Inception (12/31/2018)
|
Share Class (Before Taxes)
|
|
|
|
|
A
|
|
%
|
%
|
%
|
C
|
|
%
|
%
|
%
|
Y
|
|
%
|
%
|
%
|
R5
|
|
%
|
%
|
%
|
|
1 Year
|
5 Years
|
Since Inception (12/31/2018)
|
Index (Reflects no deduction for fees, expenses, or taxes)
|
|
|
|
60% MSCI World Index (Hedged to USD) / 40% Bloomberg Global-Aggregate Total Return Index Value Hedged USD
|
%
|
%
|
%
|
MSCI World Index (Hedged to USD)
|
%
|
%
|
%
|
Bloomberg Global-Aggregate Total Return Index Value Hedged USD
|
%
|
%
|
%
|
AHL Partners LLP
|
Russell Korgaonkar
Chief Investment Officer Since Fund Inception (2018) |
Otto van Hemert
Director of Core Strategies Since 2021 |
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
|
■
|
develops overall investment strategies for each Fund,
|
■
|
selects and changes sub-advisors,
|
■
|
allocates assets among sub-advisors,
|
■
|
monitors and evaluates the sub-advisor’s investment performance,
|
■
|
monitors the sub-advisor’s compliance with each Fund’s investment objectives, policies and restrictions,
|
■
|
oversees each Fund’s 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.
|
■
|
Cash-Equivalent Securities. A Fund may invest cash balances in cash-equivalent securities including, for example, short-term U.S. Treasury bills and notes, U.S. government agency issues, corporate obligations (including commercial paper), and asset-backed securities. Short-term U.S. Treasury bills and notes are discussed below, under “Fixed-Income Instruments.”
|
■
|
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.
|
■
|
Foreign Currency Futures Contracts. A foreign currency futures contract is a contract to purchase or sell an agreed-upon amount of a foreign currency at a specified future date, at a price agreed upon when the contract is made. A Fund may have exposure to foreign currencies for investment or hedging purposes by purchasing or selling futures contracts in non-U.S. currencies. Foreign currencies may decline in value relative to the U.S. dollar and affect a Fund’s investments in securities or derivatives that provide exposure to foreign (non-U.S.) currencies. Positions in foreign currency futures contracts must be closed out through a registered U.S. exchange or foreign board of trade that provides a secondary market for such contracts. Such secondary markets may not exist or may not be accessible at a particular time, which may prevent a Fund from closing its foreign currency futures position and expose the Fund to greater losses.
|
■
|
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 index futures contract, such as an equity index futures contract or a bond index futures contract, is based on the value of an
|
underlying index. An interest rate futures contract is a contract for the future delivery of an interest-bearing debt security. A government bond futures contract, such as a Treasury futures contract, is a contract for the future delivery of a government bond. 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.
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■
|
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 the 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.
|
•
|
Commodities Swaps. In a commodities swap, a Fund agrees to either pay or receive an amount equal to the change in the value of a specified, notional amount of a commodity index, basket of commodities or individual commodity to or from a counterparty in exchange for the payment of a fee or the equivalent of an interest rate.
|
•
|
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.
|
•
|
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.
|
■
|
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.
|
■
|
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.
|
■
|
Inflation Index-Linked Securities. Inflation-indexed securities, also known as inflation-protected securities, are fixed income instruments structured such that their interest and principal payments are adjusted to increase and decrease with changes in official inflation rates. In periods of deflation when the inflation rate is declining, the principal value of an inflation-indexed security will be adjusted downward. This will result in a decrease in the interest payments.
|
■
|
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 the sub-advisor if unrated by a rating organization. A Fund, at the discretion of the sub-advisor, may retain a security that has been downgraded below the initial investment criteria.
|
■
|
Sovereign Debt. Sovereign debt securities are typically issued or guaranteed by national governments, in order to finance the issuing country’s growth and/or budget. Sovereign debt may be in the form of conventional securities or other types of debt instruments such as loans or loan participations. Investing in foreign sovereign debt securities will expose the Fund to the direct or indirect consequences of political, social or economic changes in the countries that issue the debt securities.
|
■
|
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.
|
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Zero Coupon Obligations. Zero coupon securities are debt obligations that do not entitle the holder to any periodic payments of interest either for the entire life of the obligation or for an initial period after the issuance of the obligations; the holder generally is entitled to receive the par value of the security at maturity. These securities are issued and traded at a discount from their face amounts. The discount approximates the total amount of interest the security will accrue and compound over the period until maturity at a rate of interest reflecting the market rate of the security at the time of issuance. The amount of the discount varies depending on such factors as the time remaining until maturity of the securities, prevailing interest rates, the liquidity of the security and the perceived credit quality of the issuer. Upon maturity, the holder of a zero coupon security is entitled to receive the par value of the security. These investments benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to attract investors who are willing to defer receipt of cash. Unlike bonds which pay cash interest throughout the period to maturity, a Fund’s investment in zero coupon securities will require a Fund to accrue income without a corresponding receipt of cash.
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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.
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Risk
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American Beacon AHL Managed Futures Strategy Fund
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American Beacon AHL Multi-Alternatives Fund
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American Beacon AHL TargetRisk Fund
|
Allocation Risk
|
X
|
X
|
X
|
Asset Selection Risk
|
X
|
X
|
X
|
Commodities Risk
|
X
|
X
|
X
|
Counterparty Risk
|
X
|
X
|
X
|
Credit Risk
|
X
|
X
|
X
|
Crowding/Convergence Risk
|
X
|
X
|
X
|
Currency Risk
|
X
|
X
|
X
|
Cybersecurity and Operational Risk
|
X
|
X
|
X
|
Derivatives Risk
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
|
X
|
X
|
|
|
X
|
X
|
|
|
X
|
X
|
Emerging Markets Risk
|
X
|
X
|
X
|
Foreign Exposure Risk
|
X
|
X
|
X
|
Geographic Concentration Risk
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
|
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Hedging Risk
|
X
|
X
|
X
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High Portfolio Turnover Risk
|
X
|
X
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X
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Risk
|
American Beacon AHL Managed Futures Strategy Fund
|
American Beacon AHL Multi-Alternatives Fund
|
American Beacon AHL TargetRisk Fund
|
High-Yield Securities Risk
|
|
X
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X
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Inflation Index-Linked Securities Risk
|
|
X
|
X
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Interest Rate Risk
|
X
|
X
|
X
|
Investment Risk
|
X
|
X
|
X
|
Leverage Risk
|
X
|
X
|
X
|
Liquidity Risk
|
X
|
X
|
X
|
Market Risk
|
X
|
X
|
X
|
|
X
|
X
|
X
|
Market Direction Risk
|
X
|
X
|
|
Market Timing Risk
|
X
|
X
|
X
|
Model and Data/Programming Error Risk
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
Non-Diversification Risk
|
X
|
X
|
X
|
Obsolescence Risk
|
X
|
X
|
X
|
Other Investment Companies Risk
|
X
|
X
|
X
|
|
X
|
X
|
X
|
Quantitative Strategy Risk
|
X
|
X
|
X
|
Recently-Organized Fund Risk
|
|
X
|
|
Redemption Risk
|
X
|
X
|
X
|
Risk Management
|
X
|
X
|
X
|
Segregated Assets Risk
|
X
|
X
|
X
|
Short Position Risk
|
X
|
X
|
|
Sovereign Debt Risk
|
X
|
X
|
X
|
Subsidiary Risk
|
X
|
X
|
X
|
Tax Risk
|
X
|
X
|
X
|
Trading System and Execution of Orders Risk
|
X
|
X
|
X
|
U.S. Government Securities Risk
|
X
|
X
|
X
|
U.S. Treasury Obligations Risk
|
X
|
X
|
X
|
Valuation Risk
|
X
|
X
|
X
|
Volatility Risk
|
X
|
X
|
X
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Zero Coupon Securities Risk
|
X
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X
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X
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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.
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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.
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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. Interest rate and government bond futures contracts, such as treasury futures contracts, expose a Fund to price fluctuations resulting from changes in interest rates. A Fund could suffer a loss if interest rates rise after a Fund has purchased an interest rate futures contract or fall after a Fund has sold an interest rate futures contract. Similarly, government bond futures contracts, such as treasury futures contracts, expose a Fund to potential losses if interest rates do not move as expected. Futures contracts on indices expose a Fund to volatility in the underlying index. Foreign currency futures contracts expose a Fund to risks associated with fluctuations in the value of foreign currencies.
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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:
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•
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Commodities swaps, which may be subject to commodities risk, including market risk based on the supply and demand of the underlying commodity.
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•
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Credit default swaps, which may be subject to credit risk and the risks associated with the purchase and sale of credit protection.
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•
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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.
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European Securities Risk. A Fund’s performance may be affected by political, social and economic conditions in Europe, such as growth of economic output (the gross national product of the countries in the region), the rate of inflation, the rate at which capital is reinvested into European economies, the success of governmental actions to reduce budget deficits, the resource self-sufficiency of European countries, interest rates in European countries, monetary exchange rates between European countries, and conflict between European countries. Most developed countries in Western Europe are members of the European Union (“EU”) and many are also members of the Economic and Monetary Union (“EMU” or “Eurozone”). European countries can be significantly affected by the tight fiscal and monetary controls that the EMU imposes on its members and with which candidates for EMU membership are required to comply.
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While certain EU countries continue to use their own currency, Eurozone countries use the Euro as their currency. Changes in imports or exports, changes in governmental or EU regulations on trade, changes in the exchange rate of the Euro and the currencies of other EU countries which are not in the Eurozone, the threat of default or actual default by one or more EU member states on its sovereign debt, and/or an economic recession in one or more EU member states may have a significant adverse effect on the economies of other EU member states and their trading partners, including non-EU European countries. A breakup of the Eurozone, particularly a disorderly breakup, would pose special challenges for the financial markets and could lead to exchange controls and/or market closures. The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries.
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The European financial markets have experienced and may continue to experience volatility and adverse trends due to concerns relating to economic downturns; rising government debt levels and the possible default on government debt; national unemployment in several European countries; public health crises; political unrest; economic sanctions; inflation; energy crises; the future of the Euro as a common currency; and war and military conflict, such as the Russian invasion of Ukraine. These events have affected the exchange rate of the Euro and may continue to significantly affect European countries. Responses to financial problems by European governments, central banks, and others, including austerity measures, interest rate rises and other reforms, may not produce the desired results, may result in social unrest and may limit future growth and economic recovery or may have unintended consequences. Many European nations are susceptible to economic risks associated with high levels of debt. Non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts, and other issuers have faced difficulties obtaining credit or refinancing existing obligations. A default or debt restructuring by any European country could adversely impact holders of that country’s debt and sellers of credit default swaps linked to that country’s creditworthiness, which may be located in other countries. Such a default or debt restructuring could affect exposures to other European countries and their companies as well. In addition, issuers have faced difficulties obtaining credit or refinancing existing obligations, and financial markets have experienced extreme volatility and declines in asset values and liquidity. Furthermore, certain European countries have had to accept assistance from supranational agencies such as the International Monetary Fund, the European Stability Mechanism or others. There can be no assurance that any creditors or supranational agencies will continue to intervene or provide further assistance, and markets may react adversely to any expected reduction in the financial support provided by these creditors.
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The United Kingdom has withdrawn from the EU, and one or more other countries may withdraw from the EU and/or abandon the Euro. These events and actions have affected, and may in the future affect, the value and exchange rate of the Euro and may continue to significantly affect the economies of every country in Europe, including countries that do not use the Euro and non-EU member states. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching.
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The national politics of European countries have been unpredictable and subject to influence by disruptive political groups and ideologies. European governments may be subject to change and such countries may experience social and political unrest. Unanticipated or sudden political or social developments may result in sudden and significant investment losses. Russia’s war with Ukraine has negatively impacted European economic activity. The effects on the economies of European countries of the Russia/Ukraine war and Russia’s response to sanctions imposed by the U.S., the EU, UK and others are impossible to predict but have been and could continue to be significant and have a severe adverse impact on the region, including significant impacts on the regional, European, and global economies and the markets for certain securities and commodities, such as oil and natural gas. For example, exports in Eastern Europe have been disrupted for certain key commodities, pushing certain commodity prices to record highs. Also, both wholesale energy prices and energy prices charged to consumers in Europe have increased significantly.
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Japan Investment Risk. A Fund’s investments in the securities of Japanese issuers, mean that the Fund is susceptible to changes in Japanese economic and political conditions, the reliability of financial information available concerning these issuers, and the legal, tax and regulatory environment surrounding these issuers. The Japanese economy, which is heavily dependent upon international trade, may be adversely affected by global competition, trade tariffs, embargos, boycotts and other government interventions and protectionist measures, excessive regulation, changes in international trade agreements, impacts of the COVID-19 pandemic, including supply chain issues, the economic conditions of its trading partners, the performance of the global economy, and regional and global conflicts. The domestic Japanese economy faces several concerns, including large government deficits, a declining domestic population and low birth rate, workforce shortages and inflation. Japan also has an aging workforce and has experienced a significant population decline in recent years. Japan’s labor market appears to be undergoing fundamental structural changes, as a labor market traditionally accustomed to lifetime employment adjusts to meet the need for increased labor mobility, which may adversely affect Japan’s economic competitiveness. Japan’s financial system faces several concerns, including extensive cross-ownership by major corporations, a changing corporate governance structure, and large government deficits, each of which may cause a slowdown of the Japanese economy. In addition, the Japanese economic growth rate could be impacted by Bank of Japan monetary policies, rising interest rates, tax increases, budget deficits, consumer confidence and volatility in the Japanese yen. The Japanese government tax and fiscal policies may also have negative impacts on the Japanese economy. Currency fluctuations, which have been significant at times,
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can have a considerable impact on exports and the overall Japanese economy. The Japanese yen may be affected by currency volatility elsewhere in Asia, especially Southeast Asia. In addition, the yen has had a history of unpredictable and volatile movements against the U.S. dollar. Japanese intervention in the currency markets could cause the value of the yen to fluctuate sharply and unpredictably and could cause losses to investors. Japan is located in a part of the world that has historically been prone to natural disasters such as earthquakes, tsunamis, typhoons and volcanic eruptions, which may have a significant impact on the business operations of Japanese companies in the affected regions and Japan’s economy. Japan also faces risks associated with climate change and transitioning to a lower-carbon economy. Relations with its neighbors, particularly China, North Korea, South Korea and Russia, have at times been strained due to territorial disputes, historical animosities and defense concerns. Political tensions between Japan and its trading partners could adversely affect the economy, especially the export sector, and destabilize the region as a whole. Japan is also heavily dependent on oil and other commodity imports, and higher commodity prices could therefore have a negative impact on the Japanese economy. These and other factors could have a negative impact on the Fund’s performance and increase the volatility of an investment in the Fund.
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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.
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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 might increase or start decreasing, the timing, frequency or magnitude of any such changes in interest rates, or when such changes might stop or reverse course. 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 changes in interest rates could lead to significant 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.
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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.
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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.
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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.
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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.
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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.
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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.
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Data Risk. The investment strategies of a Fund are highly reliant on the gathering, cleaning, culling, and performance of analysis of large amounts of Data. Accordingly, Models rely heavily on appropriate Data inputs. However, it is not possible or practicable to factor all relevant, available Data into forecasts and/or trading decisions of the Models, particularly with regard to the more newly established financial instruments in which a Fund may invest. The sub-advisor will use its discretion to determine what Data to gather with respect to each investment strategy and what subset of that Data the Models will take into account to produce forecasts that may have an impact on ultimate investment decisions. In addition, due to the automated nature of Data gathering, the volume and depth of Data available, the complexity and often manual nature of Data cleaning, and the fact that a substantial majority of Data comes from third-party sources, it is inevitable that not all desired and/or relevant Data will be available to, or processed by, the sub-advisor at all times. Irrespective of the merit, value and/or strength of a particular Model, it will not perform as designed if incorrect Data is fed into it, which may lead to a System Event, potentially subjecting a Fund to a loss. Further, even if Data is input correctly, “model prices” anticipated by the Data through the Models may differ substantially from market prices, especially for securities with complex characteristics, such as derivatives. Where incorrect or incomplete Data is available, the sub-advisor may, and often will, continue to generate forecasts and make investment decisions based on the Data available to it. Additionally, the sub-advisor may determine that certain available Data, while potentially useful in generating forecasts and/or making investment decisions, is not cost effective to gather due to, among other factors, the technology costs or third-party vendor costs and, in such cases, the sub-advisor will not utilize such Data. The sub-advisor has full discretion to select the Data it utilizes. The sub-advisor may elect to use or may refrain from using any specific Data or type of Data in generating forecasts or making trading decisions with respect to the Models. The Data utilized in generating forecasts or making decisions underlying the Models may not be (i) the most accurate data available or (ii) free of errors. Shareholders should assume that the Data set used in connection with the Models is limited and should understand that the foregoing risks associated with gathering, cleaning, culling, and analyzing large amounts of Data are an inherent part of investing with a quantitative, process-driven, systematic adviser such as the sub-advisor. When Models and Data prove to be incorrect, misleading, or incomplete, any decisions made in reliance thereon expose a Fund to potential losses and such losses may be compounded over time. For example, by relying on Models and Data, the sub-advisor may be induced to buy certain investments at prices that are too high, to sell certain other investments at prices that are too low, or to miss favorable opportunities altogether. Similarly, any hedging based on faulty Models and Data may prove to be unsuccessful and any valuations of a Fund’s investments that are based on valuation Models may prove to be incorrect.
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Error Detection Risk. Errors in Models and Data are often extremely difficult to detect, and, in the case of Models, the difficulty of detecting System Events may be exacerbated by the lack of design documents or specifications. Regardless of how difficult their detection appears in retrospect, some System Events may go undetected for long periods of time and some may never be detected. Finally, the sub-advisor may detect certain System Events that it chooses, in its sole discretion, not to address or fix, and the use of third-party software may also lead to System Events known to the sub-advisor that it chooses, in its sole discretion, not to address or fix. The degradation or impact caused by these System Events can compound over time. When a System Event is detected, the sub-advisor generally will not perform a materiality analysis on the potential impact of a System Event. The sub-advisor believes that the testing and monitoring performed on its models may enable the sub-advisor to identify and address those System Events that a prudent person managing a quantitative, systematic, and computerized investment program would identify and address by correcting the underlying issue(s) giving rise to the System Events; however, there is no guarantee of the success of such processes. Shareholders should assume that the System Events and their ensuing risks and impact are an inherent part of investing with a process-driven, systematic investment manager such as the sub-advisor. Accordingly, the sub-advisor does not expect to disclose discovered System Events to a Fund or to shareholders.
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Model Error Risk. Models may incorrectly forecast future behavior, leading to potential losses on a cash flow and/or a mark-to-market basis. Furthermore, in unforeseen or certain low-probability scenarios (often involving a market event or disruption of some kind), Models may produce unexpected results which may or may not be System Events.
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Programming Risk. The research and modelling processes engaged in by the sub-advisor on behalf of a Fund are extremely complex and involve the use of financial, economic, econometric, and statistical theories, research, and modelling; the results of this investment approach must then be translated into computer code. Although the sub-advisor seeks to hire individuals skilled in each of these functions and to provide appropriate levels of oversight and employ other mitigating measures and processes, the complexity of the individual tasks, the difficulty of integrating such tasks, and the limited ability to perform “real world” testing of the end product, even with simulations and similar methodologies, raise the chances that Model code may contain one or more coding errors, thus potentially resulting in a System Event and further, one or more of such coding errors could adversely affect a Fund’s investment performance.
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Government Money Market Funds Risk. Investments in government money market funds are subject to interest rate risk, credit risk, and market risk. Although a government money market fund seeks to preserve the value of a fund’s investment at $1.00 per share, at times, the share price of government money market funds may fall below the $1.00 share price, especially during periods of high redemption pressures, illiquid markets, and/or significant market volatility.
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The MSCI World Index Hedged to USD represents a close estimation of the performance that can be achieved by hedging the currency exposures of its parent index, the MSCI World Index, to the USD, the “home” currency for the hedged index. The index is 100% hedged to the USD by selling each foreign currency forward at the one-month forward weight. The parent index is composed of large- and mid-cap stocks across 23 Developed Markets (DM) countries and its local performance is calculated in 13 different currencies, including the Euro.
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The Bloomberg Global-Aggregate Total Return Index Value Hedged USD is a flagship measure of global investment grade debt from twenty-four local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.
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American Beacon Fund
|
Aggregate Management and Investment Advisory Fees
|
American Beacon AHL Managed Futures Strategy Fund
|
1.35%
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American Beacon AHL TargetRisk Fund
|
0.90%
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First $5 billion
|
0.35%
|
Next $5 billion
|
0.325%
|
Next $10 billion
|
0.30%
|
Over $20 billion
|
0.275%
|
American Beacon Fund
|
A Class
|
C Class
|
Y Class
|
R5 Class
|
R6 Class
|
Investor Class
|
American Beacon AHL Managed Futures Strategy Fund
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
American Beacon AHL Multi-Alternatives Fund
|
1.56%
|
2.31%
|
1.33%
|
N/A
|
1.23%
|
N/A
|
American Beacon AHL TargetRisk Fund
|
1.44%
|
N/A
|
N/A
|
1.04%
|
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.” |
■
|
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
|
• Your name/account registration
|
• Your account number
|
• Type of transaction requested
|
• Fund name(s) and fund number(s)
|
• Dollar amount or number of shares
|
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
|
Other Distributions Paid
|
American Beacon AHL Managed Futures Strategy Fund
|
Annually
|
Annually
|
American Beacon AHL Multi-Alternatives Fund
|
Annually
|
Annually
|
American Beacon AHL TargetRisk Fund
|
Annually
|
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
|
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 AHL Managed Futures Strategy FundSM
|
|||||
|
A Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$10.19
|
$10.32
|
$10.56
|
$10.08
|
$10.49
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income (loss)
|
0.27
A
|
1.04
|
(0.16
)
A
|
(0.01
)
|
0.04
|
Net gains (losses) on investments (both realized and unrealized)
|
(0.70
)
|
0.66
|
0.68
|
1.03
|
(0.03
)
|
Total income (loss) from investment operations
|
(0.43
)
|
1.70
|
0.52
|
1.02
|
0.01
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.03
)
|
(0.51
)
|
(0.44
)
|
(0.31
)
|
(0.23
)
|
Distributions from net realized gains
|
-
|
(1.32
)
|
(0.32
)
|
(0.23
)
|
(0.19
)
|
Total distributions
|
(0.03
)
|
(1.83
)
|
(0.76
)
|
(0.54
)
|
(0.42
)
|
Net asset value, end of period
|
$9.73
|
$10.19
|
$10.32
|
$10.56
|
$10.08
|
Total returnB
|
(4.21
)%
|
16.53
%
|
4.88
%
|
10.31
%
|
0.06
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$89,278,134
|
$195,971,375
|
$9,680,124
|
$4,653,583
|
$4,229,124
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupmentsC
|
1.89
%
|
1.80
%
|
1.82
%
|
1.91
%
|
1.89
%
|
Expenses, net of reimbursements and/or recoupmentsC
|
1.89
%
|
1.79
%
|
1.81
%
|
1.90
%
|
1.94
%
|
Net investment income (loss), before expense reimbursements and/or recoupments
|
2.70
%
|
0.45
%
|
(1.44
)%
|
(0.69
)%
|
0.22
%
|
Net investment income (loss), net of reimbursements and/or recoupments
|
2.70
%
|
0.46
%
|
(1.43
)%
|
(0.68
)%
|
0.17
%
|
Portfolio turnover rateD
|
-
%
|
-
%
|
-
%
|
-
%
|
-
%
|
A | Per share amounts have been calculated using the average shares method. |
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 | Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon Cayman Managed Futures Strategy Fund, Ltd. |
D | Portfolio turnover is based on the lesser of long-term purchases or sales divided by the average long-term fair value during the period. The Fund did not invest in any long-term securities during the reporting period. |
American Beacon AHL Managed Futures Strategy FundSM
|
|||||
|
C Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$9.81
|
$10.00
|
$10.27
|
$9.82
|
$10.25
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income (loss)
|
0.16
|
(0.09
)
A
|
(0.33
)
A
|
(0.11
)
A
|
(0.06
)
A
|
Net gains (losses) on investments (both realized and unrealized)
|
(0.63
)
|
1.66
|
0.75
|
1.04
|
(0.02
)
|
Total income (loss) from investment operations
|
(0.47
)
|
1.57
|
0.42
|
0.93
|
(0.08
)
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
-
|
(0.44
)
|
(0.37
)
|
(0.25
)
|
(0.16
)
|
Distributions from net realized gains
|
-
|
(1.32
)
|
(0.32
)
|
(0.23
)
|
(0.19
)
|
Total distributions
|
-
|
(1.76
)
|
(0.69
)
|
(0.48
)
|
(0.35
)
|
Net asset value, end of period
|
$9.34
|
$9.81
|
$10.00
|
$10.27
|
$9.82
|
Total returnB
|
(4.79
)%
|
15.71
%
|
4.01
%
|
9.62
%
|
(0.78
)%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$31,340,562
|
$34,906,077
|
$15,052,491
|
$9,482,185
|
$6,352,147
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupmentsC
|
2.55
%
|
2.53
%
|
2.55
%
|
2.65
%
|
2.64
%
|
Expenses, net of reimbursements and/or recoupmentsC
|
2.55
%
|
2.52
%
|
2.54
%
|
2.64
%
|
2.69
%
|
Net investment income (loss), before expense reimbursements and/or recoupments
|
2.09
%
|
(0.82
)%
|
(3.06
)%
|
(1.07
)%
|
(0.53
)%
|
Net investment income (loss), net of reimbursements
|
2.09
%
|
(0.81
)%
|
(3.05
)%
|
(1.06
)%
|
(0.58
)%
|
Portfolio turnover rateD
|
-
%
|
-
%
|
-
%
|
-
%
|
-
%
|
A | Per share amounts have been calculated using the average shares method. |
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 | Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon Cayman Managed Futures Strategy Fund, Ltd. |
D | Portfolio turnover is based on the lesser of long-term purchases or sales divided by the average long-term fair value during the period. The Fund did not invest in any long-term securities during the reporting period. |
American Beacon AHL Managed Futures Strategy FundSM
|
|||||
|
Y Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$10.36
|
$10.43
|
$10.67
|
$10.17
|
$10.58
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income (loss)
|
0.23
|
0.40
|
(0.17
)
A
|
0.08
|
0.08
|
Net gains (losses) on investments (both realized and unrealized)
|
(0.64
)
|
1.36
|
0.72
|
0.99
|
(0.05
)
|
Total income (loss) from investment operations
|
(0.41
)
|
1.76
|
0.55
|
1.07
|
0.03
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.10
)
|
(0.51
)
|
(0.47
)
|
(0.34
)
|
(0.25
)
|
Distributions from net realized gains
|
-
|
(1.32
)
|
(0.32
)
|
(0.23
)
|
(0.19
)
|
Total distributions
|
(0.10
)
|
(1.83
)
|
(0.79
)
|
(0.57
)
|
(0.44
)
|
Net asset value, end of period
|
$9.85
|
$10.36
|
$10.43
|
$10.67
|
$10.17
|
Total returnB
|
(3.99
)%
|
16.95
%
|
5.04
%
|
10.71
%
|
0.34
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$2,239,856,084
|
$2,650,349,111
|
$1,608,801,856
|
$888,669,539
|
$634,005,786
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupmentsC
|
1.60
%
|
1.56
%
|
1.54
%
|
1.64
%
|
1.63
%
|
Expenses, net of reimbursements and/or recoupmentsC
|
1.60
%
|
1.55
%
|
1.53
%
|
1.62
%
|
1.64
%
|
Net investment income (loss), before expense reimbursements and/or recoupments
|
3.03
%
|
0.00
%
|
(1.48
)%
|
0.02
%
|
0.48
%
|
Net investment income (loss), net of reimbursements and/or recoupments
|
3.03
%
|
0.01
%
|
(1.47
)%
|
0.04
%
|
0.47
%
|
Portfolio turnover rateD
|
-
%
|
-
%
|
-
%
|
-
%
|
-
%
|
A | Per share amounts have been calculated using the average shares method. |
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 | Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon Cayman Managed Futures Strategy Fund, Ltd. |
D | Portfolio turnover is based on the lesser of long-term purchases or sales divided by the average long-term fair value during the period. The Fund did not invest in any long-term securities during the reporting period. |
American Beacon AHL Managed Futures Strategy FundSM
|
|||||
|
R5 ClassA
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$10.42
|
$10.49
|
$10.72
|
$10.22
|
$10.63
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income (loss)
|
0.43
|
0.41
|
(0.18
)
B
|
(1.03
)
|
0.04
|
Net gains (losses) on investments (both realized and unrealized)
|
(0.83
)
|
1.36
|
0.74
|
2.10
|
0.01
|
Total income (loss) from investment operations
|
(0.40
)
|
1.77
|
0.56
|
1.07
|
0.05
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.11
)
|
(0.52
)
|
(0.47
)
|
(0.34
)
|
(0.27
)
|
Distributions from net realized gains
|
-
|
(1.32
)
|
(0.32
)
|
(0.23
)
|
(0.19
)
|
Total distributions
|
(0.11
)
|
(1.84
)
|
(0.79
)
|
(0.57
)
|
(0.46
)
|
Net asset value, end of period
|
$9.91
|
$10.42
|
$10.49
|
$10.72
|
$10.22
|
Total returnC
|
(3.85
)%
|
16.93
%
|
5.12
%
|
10.67
%
|
0.43
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$735,326,328
|
$693,916,735
|
$473,334,156
|
$195,920,482
|
$347,611,671
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupmentsD
|
1.51
%
|
1.49
%
|
1.55
%
|
1.59
%
|
1.60
%
|
Expenses, net of reimbursements and/or recoupmentsD
|
1.51
%
|
1.48
%
|
1.54
%
|
1.54
%
|
1.54
%
|
Net investment income (loss), before expense reimbursements and/or recoupments
|
3.15
%
|
0.08
%
|
(1.58
)%
|
(3.19
)%
|
0.52
%
|
Net investment income (loss), net of reimbursements and/or recoupments
|
3.15
%
|
0.09
%
|
(1.57
)%
|
(3.14
)%
|
0.58
%
|
Portfolio turnover rateE
|
-
%
|
-
%
|
-
%
|
-
%
|
-
%
|
A | Prior to February 28, 2020, the R5 Class was known as Institutional 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 | Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon Cayman Managed Futures Strategy Fund, Ltd. |
E | Portfolio turnover is based on the lesser of long-term purchases or sales divided by the average long-term fair value during the period. The Fund did not invest in any long-term securities during the reporting period. |
American Beacon AHL Managed Futures Strategy FundSM
|
|||||
|
Investor Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$10.21
|
$10.32
|
$10.56
|
$10.07
|
$10.48
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income (loss)
|
0.27
A
|
(0.02
)
A
|
(0.17
)
|
(0.04
)
A
|
0.06
|
Net gains (losses) on investments (both realized and unrealized)
|
(0.70
)
|
1.72
|
0.67
|
1.07
|
(0.05
)
|
Total income (loss) from investment operations
|
(0.43
)
|
1.70
|
0.50
|
1.03
|
0.01
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.06
)
|
(0.49
)
|
(0.42
)
|
(0.31
)
|
(0.23
)
|
Distributions from net realized gains
|
-
|
(1.32
)
|
(0.32
)
|
(0.23
)
|
(0.19
)
|
Total distributions
|
(0.06
)
|
(1.81
)
|
(0.74
)
|
(0.54
)
|
(0.42
)
|
Net asset value, end of period
|
$9.72
|
$10.21
|
$10.32
|
$10.56
|
$10.07
|
Total returnB
|
(4.20
)%
|
16.47
%
|
4.69
%
|
10.42
%
|
0.08
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$44,699,687
|
$66,007,099
|
$37,408,089
|
$31,217,881
|
$18,716,672
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupmentsC
|
1.86
%
|
1.84
%
|
1.93
%
|
1.97
%
|
1.94
%
|
Expenses, net of reimbursements and/or recoupmentsC
|
1.86
%
|
1.83
%
|
1.92
%
|
1.92
%
|
1.92
%
|
Net investment income (loss), before expense reimbursements and/or recoupments
|
2.74
%
|
(0.20
)%
|
(2.84
)%
|
(0.44
)%
|
0.17
%
|
Net investment income (loss), net of reimbursements and/or recoupments
|
2.74
%
|
(0.19
)%
|
(2.83
)%
|
(0.39
)%
|
0.19
%
|
Portfolio turnover rateD
|
-
%
|
-
%
|
-
%
|
-
%
|
-
%
|
A | Per share amounts have been calculated using the average shares method. |
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 | Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon Cayman Managed Futures Strategy Fund, Ltd. |
D | Portfolio turnover is based on the lesser of long-term purchases or sales divided by the average long-term fair value during the period. The Fund did not invest in any long-term securities during the reporting period. |
American Beacon AHL Multi-Alternatives FundSM
|
|
|
A Class
|
For a share outstanding throughout the period:
|
August 17, 2023A to December 31, 2023
|
Net asset value, beginning of period
|
$10.00
|
Income from investment operations:
|
|
Net investment income
|
0.12
|
Net gains on investments (both realized and unrealized)
|
0.22
|
Total income from investment operations
|
0.34
|
Less distributions:
|
|
Dividends from net investment income
|
(0.08
)
|
Distributions from net realized gains
|
(0.07
)
|
Total distributions
|
(0.15
)
|
Net asset value, end of period
|
$10.19
|
Total returnB
|
3.41
%
C
|
Ratios and supplemental data:
|
|
Net assets, end of period
|
$103,423
|
Ratios to average net assets:
|
|
Expenses, before reimbursements and/or recoupmentsE
|
8.22
%
D,F
|
Expenses, net of reimbursements and/or recoupmentsE
|
1.56
%
D
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(3.53
)%
D,F
|
Net investment income, net of reimbursements and/or recoupments
|
3.13
%
D
|
Portfolio turnover rate
|
83
%
C
|
A
|
Commencement of operations.
|
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
|
Not annualized.
|
D
|
Annualized.
|
E
|
Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon AHL Multi-Alternatives Cayman Fund.
|
F
|
Includes non-recurring organization and offering costs.
|
American Beacon AHL Multi-Alternatives FundSM
|
|
|
C Class
|
For a share outstanding throughout the period:
|
August 17, 2023A to December 31, 2023
|
Net asset value, beginning of period
|
$10.00
|
Income from investment operations:
|
|
Net investment income
|
0.09
|
Net gains on investments (both realized and unrealized)
|
0.22
|
Total income from investment operations
|
0.31
|
Less distributions:
|
|
Dividends from net investment income
|
(0.08
)
|
Distributions from net realized gains
|
(0.07
)
|
Total distributions
|
(0.15
)
|
Net asset value, end of period
|
$10.16
|
Total returnB
|
3.11
%
C
|
Ratios and supplemental data:
|
|
Net assets, end of period
|
$103,135
|
Ratios to average net assets:
|
|
Expenses, before reimbursements and/or recoupmentsE
|
8.97
%
D,F
|
Expenses, net of reimbursements and/or recoupmentsE
|
2.31
%
D
|
Net investment (loss), before expense reimbursements and/or recoupments
|
(4.28
)%
D,F
|
Net investment income, net of reimbursements and/or recoupments
|
2.38
%
D
|
Portfolio turnover rate
|
83
%
C
|
A
|
Commencement of operations.
|
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
|
Not annualized.
|
D
|
Annualized.
|
E
|
Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon AHL Multi-Alternatives Cayman Fund.
|
F
|
Includes non-recurring organization and offering costs.
|
American Beacon AHL Multi-Alternatives FundSM
|
|
|
Y Class
|
For a share outstanding throughout the period:
|
August 17, 2023A to December 31, 2023
|
Net asset value, beginning of period
|
$10.00
|
Income from investment operations:
|
|
Net investment income
|
0.08
|
Net gains on investments (both realized and unrealized)
|
0.27
|
Total income from investment operations
|
0.35
|
Less distributions:
|
|
Dividends from net investment income
|
(0.08
)
|
Distributions from net realized gains
|
(0.07
)
|
Total distributions
|
(0.15
)
|
Net asset value, end of period
|
$10.20
|
Total returnB
|
3.51
%
C
|
Ratios and supplemental data:
|
|
Net assets, end of period
|
$6,800,010
|
Ratios to average net assets:
|
|
Expenses, before reimbursements and/or recoupmentsE
|
3.99
%
D,F
|
Expenses, net of reimbursements and/or recoupmentsE
|
1.33
%
D
|
Net investment (loss), before expense reimbursements and/or recoupments
|
0.81
%
D,F
|
Net investment income, net of reimbursements and/or recoupments
|
3.47
%
D
|
Portfolio turnover rate
|
83
%
C
|
A
|
Commencement of operations.
|
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
|
Not annualized.
|
D
|
Annualized.
|
E
|
Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon AHL Multi-Alternatives Cayman Fund.
|
F
|
Includes non-recurring organization and offering costs.
|
American Beacon AHL Multi-Alternatives FundSM
|
|
|
R6 Class
|
For a share outstanding throughout the period:
|
August 17, 2023A to December 31, 2023
|
Net asset value, beginning of period
|
$10.00
|
Income from investment operations:
|
|
Net investment income
|
0.14
|
Net gains on investments (both realized and unrealized)
|
0.21
|
Total income from investment operations
|
0.35
|
Less distributions:
|
|
Dividends from net investment income
|
(0.08
)
|
Distributions from net realized gains
|
(0.07
)
|
Total distributions
|
(0.15
)
|
Net asset value, end of period
|
$10.20
|
Total returnB
|
3.51
%
C
|
Ratios and supplemental data:
|
|
Net assets, end of period
|
$20,707,713
|
Ratios to average net assets:
|
|
Expenses, before reimbursements and/or recoupmentsE
|
3.83
%
D,F
|
Expenses, net of reimbursements and/or recoupmentsE
|
1.23
%
D
|
Net investment (loss), before expense reimbursements and/or recoupments
|
0.86
%
D,F
|
Net investment income, net of reimbursements and/or recoupments
|
3.46
%
D
|
Portfolio turnover rate
|
83
%
C
|
A
|
Commencement of operations.
|
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
|
Not annualized.
|
D
|
Annualized.
|
E
|
Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon AHL Multi-Alternatives Cayman Fund.
|
F
|
Includes non-recurring organization and offering costs.
|
American Beacon AHL TargetRisk FundSM
|
|||||
|
A Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019A
|
Net asset value, beginning of period
|
$9.58
|
$12.08
|
$12.68
|
$12.12
|
$11.32
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income (loss)
|
0.29
B
|
0.10
B
|
0.25
|
(0.10
)
|
(0.03
)
|
Net gains (losses) on investments (both realized and unrealized)
|
0.98
|
(2.10
)
|
1.45
|
0.73
|
1.38
|
Total income (loss) from investment operations
|
1.27
|
(2.00
)
|
1.70
|
0.63
|
1.35
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.37
)
|
(0.32
)
|
(0.95
)
|
(0.00
)
C
|
(0.02
)
|
Distributions from net realized gains
|
-
|
(0.18
)
|
(1.35
)
|
(0.07
)
|
(0.53
)
|
Total distributions
|
(0.37
)
|
(0.50
)
|
(2.30
)
|
(0.07
)
|
(0.55
)
|
Net asset value, end of period
|
$10.48
|
$9.58
|
$12.08
|
$12.68
|
$12.12
|
Total returnD
|
13.25
%
|
(16.56
)%
|
13.38
%
|
5.19
%
|
11.89
%
E
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$2,745,472
|
$3,656,374
|
$5,381,597
|
$4,007,021
|
$1,469,217
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupmentsG
|
1.58
%
|
1.33
%
|
1.30
%
|
1.45
%
|
2.33
%
F
|
Expenses, net of reimbursements and/or recoupmentsG
|
1.57
%
|
1.32
%
|
1.30
%
|
1.44
%
|
1.44
%
F
|
Net investment income (loss), before expense reimbursements and/or recoupments
|
2.84
%
|
0.89
%
|
1.06
%
|
(1.57
)%
|
(1.73
)%
F
|
Net investment income (loss), net of reimbursements and/or recoupments
|
2.85
%
|
0.90
%
|
1.06
%
|
(1.56
)%
|
(0.84
)%
F
|
Portfolio turnover rate
|
135
%
|
277
%
|
195
%
|
197
%
|
77
%
E
|
A
|
Commenced operations on April 30, 2019.
|
B
|
Per share amounts have been calculated using the average shares method.
|
C
|
Amount represents less than $0.01 per share.
|
D
|
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.
|
E
|
Not annualized.
|
F
|
Annualized.
|
G
|
Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon Cayman TargetRisk Company, Ltd.
|
American Beacon AHL TargetRisk FundSM
|
|||||
|
C Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019A
|
Net asset value, beginning of period
|
$9.49
|
$11.92
|
$12.55
|
$12.09
|
$11.32
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income (loss)
|
0.23
B
|
0.01
B
|
(0.02
)
B
|
(0.17
)
|
(0.06
)
|
Net gains (losses) on investments (both realized and unrealized)
|
0.96
|
(2.06
)
|
1.59
|
0.70
|
1.36
|
Total income (loss) from investment operations
|
1.19
|
(2.05
)
|
1.57
|
0.53
|
1.30
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.29
)
|
(0.20
)
|
(0.85
)
|
-
|
-
|
Distributions from net realized gains
|
-
|
(0.18
)
|
(1.35
)
|
(0.07
)
|
(0.53
)
|
Total distributions
|
(0.29
)
|
(0.38
)
|
(2.20
)
|
(0.07
)
|
(0.53
)
|
Net asset value, end of period
|
$10.39
|
$9.49
|
$11.92
|
$12.55
|
$12.09
|
Total returnC
|
12.59
%
|
(17.19
)%
|
12.51
%
|
4.37
%
|
11.42
%
D
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$8,944,023
|
$11,650,636
|
$20,623,659
|
$14,969,947
|
$5,702,552
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupmentsF
|
2.15
%
|
2.10
%
|
2.06
%
|
2.20
%
|
2.76
%
E
|
Expenses, net of reimbursements and/or recoupmentsF
|
2.14
%
|
2.09
%
|
2.06
%
|
2.19
%
|
2.19
%
E
|
Net investment income (loss), before expense reimbursements and/or recoupments
|
2.26
%
|
0.09
%
|
(0.15
)%
|
(2.34
)%
|
(2.28
)%
E
|
Net investment income (loss), net of reimbursements
|
2.27
%
|
0.10
%
|
(0.15
)%
|
(2.33
)%
|
(1.71
)%
E
|
Portfolio turnover rate
|
135
%
|
277
%
|
195
%
|
197
%
|
77
%
D
|
A
|
Commenced operations on April 30, 2019.
|
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.
|
F
|
Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon Cayman TargetRisk Company, Ltd.
|
American Beacon AHL TargetRisk FundSM
|
|||||
|
Y Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$9.64
|
$12.16
|
$12.74
|
$12.16
|
$10.00
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income (loss)
|
0.33
A
|
0.11
A
|
0.28
|
(0.05
)
|
(0.02
)
|
Net gains (losses) on investments (both realized and unrealized)
|
0.99
|
(2.11
)
|
1.46
|
0.73
|
2.73
|
Total income (loss) from investment operations
|
1.32
|
(2.00
)
|
1.74
|
0.68
|
2.71
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.41
)
|
(0.34
)
|
(0.97
)
|
(0.03
)
|
(0.02
)
|
Distributions from net realized gains
|
-
|
(0.18
)
|
(1.35
)
|
(0.07
)
|
(0.53
)
|
Total distributions
|
(0.41
)
|
(0.52
)
|
(2.32
)
|
(0.10
)
|
(0.55
)
|
Net asset value, end of period
|
$10.55
|
$9.64
|
$12.16
|
$12.74
|
$12.16
|
Total returnB
|
13.77
%
|
(16.45
)%
|
13.66
%
|
5.55
%
|
27.06
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$230,217,307
|
$340,103,816
|
$756,225,072
|
$665,119,502
|
$118,366,001
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupmentsC
|
1.17
%
|
1.11
%
|
1.07
%
|
1.13
%
|
1.62
%
|
Expenses, net of reimbursements and/or recoupmentsC
|
1.16
%
|
1.10
%
|
1.07
%
|
1.11
%
|
1.14
%
|
Net investment income (loss), before expense reimbursements and/or recoupments
|
3.25
%
|
1.03
%
|
0.58
%
|
(1.18
)%
|
(1.13
)%
|
Net investment income (loss), net of reimbursements and/or recoupments
|
3.26
%
|
1.04
%
|
0.58
%
|
(1.16
)%
|
(0.65
)%
|
Portfolio turnover rate
|
135
%
|
277
%
|
195
%
|
197
%
|
77
%
|
A
|
Per share amounts have been calculated using the average shares method.
|
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
|
Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon Cayman TargetRisk Company, Ltd.
|
American Beacon AHL TargetRisk FundSM
|
|||||
|
R5 ClassA
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$9.64
|
$12.17
|
$12.75
|
$12.16
|
$10.00
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income (loss)
|
0.33
B
|
0.13
B
|
0.21
|
(0.05
)
|
0.02
|
Net gains (losses) on investments (both realized and unrealized)
|
1.01
|
(2.12
)
|
1.53
|
0.74
|
2.69
|
Total income (loss) from investment operations
|
1.34
|
(1.99
)
|
1.74
|
0.69
|
2.71
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.43
)
|
(0.36
)
|
(0.97
)
|
(0.03
)
|
(0.02
)
|
Distributions from net realized gains
|
-
|
(0.18
)
|
(1.35
)
|
(0.07
)
|
(0.53
)
|
Total distributions
|
(0.43
)
|
(0.54
)
|
(2.32
)
|
(0.10
)
|
(0.55
)
|
Net asset value, end of period
|
$10.55
|
$9.64
|
$12.17
|
$12.75
|
$12.16
|
Total returnC
|
13.92
%
|
(16.42
)%
|
13.69
%
|
5.68
%
|
27.06
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$24,839,297
|
$69,246,839
|
$116,339,052
|
$95,337,373
|
$12,692,260
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupmentsD
|
1.12
%
|
1.08
%
|
1.05
%
|
1.08
%
|
1.59
%
|
Expenses, net of reimbursements and/or recoupmentsD
|
1.05
%
E
|
1.05
%
E
|
1.04
%
|
1.04
%
|
1.04
%
|
Net investment income (loss), before expense reimbursements and/or recoupments
|
3.21
%
|
1.14
%
|
0.62
%
|
(0.97
)%
|
(0.44
)%
|
Net investment income (loss), net of reimbursements and/or recoupments
|
3.28
%
|
1.17
%
|
0.63
%
|
(0.93
)%
|
0.11
%
|
Portfolio turnover rate
|
135
%
|
277
%
|
195
%
|
197
%
|
77
%
|
A
|
Prior to February 28, 2020, the R5 Class was known as Institutional 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
|
Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon Cayman TargetRisk Company, Ltd.
|
E
|
Includes non-operating expenses consisting of dividends and interest expense from securities sold short. The Expenses, net of reimbursements, excluding non-operating expenses is 1.04% and 1.04% for the year ended December 31, 2023 and December 31, 2022, respectively.
|
American Beacon AHL TargetRisk FundSM
|
|||||
|
Investor Class
|
||||
For a share outstanding throughout the period:
|
Year Ended December 31, 2023
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
Year Ended December 31, 2020
|
Year Ended December 31, 2019
|
Net asset value, beginning of period
|
$9.61
|
$12.11
|
$12.70
|
$12.14
|
$10.00
|
Income (loss) from investment operations:
|
|
|
|
|
|
Net investment income (loss)
|
0.30
A
|
0.09
A
|
0.21
|
(0.13
)
|
(0.07
)
|
Net gains (losses) on investments (both realized and unrealized)
|
0.99
|
(2.10
)
|
1.47
|
0.76
|
2.76
|
Total income (loss) from investment operations
|
1.29
|
(2.01
)
|
1.68
|
0.63
|
2.69
|
Less distributions:
|
|
|
|
|
|
Dividends from net investment income
|
(0.38
)
|
(0.31
)
|
(0.92
)
|
-
|
(0.02
)
|
Distributions from net realized gains
|
-
|
(0.18
)
|
(1.35
)
|
(0.07
)
|
(0.53
)
|
Total distributions
|
(0.38
)
|
(0.49
)
|
(2.27
)
|
(0.07
)
|
(0.55
)
|
Net asset value, end of period
|
$10.52
|
$9.61
|
$12.11
|
$12.70
|
$12.14
|
Total returnB
|
13.48
%
|
(16.65
)%
|
13.24
%
|
5.18
%
|
26.85
%
|
Ratios and supplemental data:
|
|
|
|
|
|
Net assets, end of period
|
$7,227,795
|
$11,271,945
|
$18,344,072
|
$16,012,197
|
$8,469,551
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses, before reimbursements and/or recoupmentsC
|
1.41
%
|
1.41
%
|
1.42
%
|
1.45
%
|
1.93
%
|
Expenses, net of reimbursements and/or recoupmentsC
|
1.41
%
|
1.41
%
|
1.42
%
|
1.42
%
|
1.42
%
|
Net investment income (loss), before expense reimbursements and/or recoupments
|
2.96
%
|
0.80
%
|
0.29
%
|
(1.70
)%
|
(1.49
)%
|
Net investment income (loss), net of reimbursements and/or recoupments
|
2.96
%
|
0.80
%
|
0.29
%
|
(1.67
)%
|
(0.98
)%
|
Portfolio turnover rate
|
135
%
|
277
%
|
195
%
|
197
%
|
77
%
|
A
|
Per share amounts have been calculated using the average shares method.
|
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
|
Please refer to the Expense Reimbursement Plan in Note 2 of the Notes to the Financial Statements in the Annual Shareholder Report for information related to the voluntary fees waived and expenses reimbursed at the American Beacon Cayman TargetRisk Company, Ltd.
|
By Telephone:
|
Call
1-800-658-5811 |
By Mail:
|
American Beacon Funds
P.O. Box 219643 Kansas City, MO 64121-9643 |
By E-mail:
|
americanbeaconfunds@ambeacon.com
|
On the Internet:
|
American Beacon is a registered service mark of American Beacon Advisors, Inc. The American Beacon Funds, American Beacon AHL Managed Futures Strategy Fund, American Beacon AHL Multi-Alternatives Fund and American Beacon AHL TargetRisk 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 exchanged from Class C (i.e., level-load) shares that are no longer subject to a CDSC and are exchanged into Class A shares of the same fund pursuant to J.P. Morgan Securities LLC’s share class exchange policy.
|
■
|
Qualified employer-sponsored defined contribution and defined benefit retirement plans, nonqualified deferred compensation plans, other employee benefit plans and trusts used to fund those plans. For purposes of this provision, such plans do not include SEP IRAs, SIMPLE IRAs, SAR-SEPs or 501(c)(3) accounts.
|
■
|
Shares of funds purchased through J.P. Morgan Securities LLC Self-Directed Investing accounts.
|
■
|
Shares purchased through rights of reinstatement.
|
■
|
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 J.P. Morgan Securities LLC or its affiliates and their spouse or financial dependent as defined by J.P. Morgan Securities LLC.
|
■
|
A shareholder in the fund’s Class C shares will have their shares converted by J.P. Morgan Securities LLC to Class A shares (or the appropriate share class) of the same fund if the shares are no longer subject to a CDSC and the conversion is consistent with J.P. Morgan Securities LLC’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 retirement accounts pursuant to the Internal Revenue Code.
|
■
|
Shares acquired through a right of reinstatement.
|
■
|
Breakpoints as described in the prospectus.
|
■
|
Rights of Accumulation (“ROA”) which entitle shareholders to breakpoint discounts as described in the fund’s prospectus will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at J.P. Morgan Securities LLC. Eligible fund family assets not held at J.P. Morgan Securities LLC (including 529 program holdings, where applicable) may be included in the ROA calculation only if the shareholder notifies their financial advisor about such assets.
|
■
|
Letters of Intent (“LOI”) which allow for breakpoint discounts based on anticipated purchases within a fund family, through J.P. Morgan Securities LLC, over a 13-month period of time (if applicable).
|
■
|
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.
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■
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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
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Shares purchased by or through a 529 Plan
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Shares purchased through an OPCO affiliated investment advisory program
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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)
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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).
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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
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■
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Employees and registered representatives of OPCO or its affiliates and their family members
|
■
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Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus
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■
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Death or disability of the shareholder
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Shares sold as part of a systematic withdrawal plan as described in the Fund’s prospectus
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■
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Return of excess contributions from an IRA Account
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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
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■
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Shares sold to pay OPCO fees but only if the transaction is initiated by OPCO
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Shares acquired through a right of reinstatement
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■
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Breakpoints as described in this prospectus.
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■
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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.
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Shares purchased in an investment advisory program.
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Shares purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
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■
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Employees and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
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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).
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■
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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.
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Death or disability of the shareholder.
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■
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Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
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■
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Return of excess contributions from an IRA Account.
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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.
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■
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Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
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■
|
Shares acquired through a right of reinstatement.
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■
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Breakpoints as described in this Prospectus.
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■
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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.
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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.
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ACH
|
Automated Clearing House
|
|
Advisers Act
|
Investment Advisers Act of 1940, as amended
|
|
American Beacon or Manager
|
American Beacon Advisors, Inc.
|
|
Beacon Funds or Trust
|
American Beacon Funds
|
|
Board
|
Board of Trustees
|
|
Brexit
|
The United Kingdom’s departure from the European Union
|
|
Capital Gains Distributions
|
Distributions of realized net capital gains
|
|
CDSC
|
Contingent Deferred Sales Charge
|
|
CFTC
|
Commodity Futures Trading Commission
|
|
CPO
|
Commodity Pool Operator
|
|
Denial of Services
|
A cybersecurity incident that results in shareholders or service providers being unable to access electronic systems
|
|
Distributor
|
Resolute Investment Distributors, Inc.
|
|
Dividends
|
Distributions from the Fund’s net investment income
|
|
DRD
|
Dividends-received deduction
|
|
EU
|
European Union
|
|
FCA
|
UK Financial Conduct Authority
|
|
FHLB
|
Federal Home Loan Bank
|
|
Forwards
|
Forward Currency Contracts
|
|
GNMA
|
Government National Mortgage Association
|
|
Internal Revenue Code
|
Internal Revenue Code of 1986, as amended
|
|
Investment Company Act
|
Investment Company Act of 1940, as amended
|
|
IRA
|
Individual Retirement Account
|
|
IRS
|
Internal Revenue Service
|
|
Junk Bonds
|
High yield, non-investment grade bonds
|
|
LIBOR
|
ICE LIBOR
|
|
LOI
|
Letter of Intent
|
|
Management Agreement
|
The Fund’s Management Agreement with the Manager
|
|
Model
|
Proprietary Mathematical Quantitative Model
|
|
Moody’s
|
Moody’s Investors Service, Inc.
|
|
NAV
|
Fund’s net asset value
|
|
NDF
|
Non-deliverable foreign currency forward contract
|
|
NYSE
|
New York Stock Exchange
|
|
Other Distributions
|
Distributions of net gains from foreign currency transactions
|
|
OTC
|
Over-the-Counter
|
|
QDI
|
Qualified Dividend Income
|
|
REIT
|
Real Estate Investment Trust
|
|
RIC
|
Regulated Investment Company
|
|
SAI
|
Statement of Additional Information
|
|
SEC
|
Securities and Exchange Commission
|
|
State Street
|
State Street Bank and Trust Company
|
|
SVP
|
Signature Validation Program
|
|
UGMA
|
Uniform Gifts to Minors Act
|
|
UK
|
United Kingdom
|
|
UTMA
|
Uniform Transfers to Minors Act
|
|
|
Tickers
|
|||||
Share Class
|
A
|
C
|
Y
|
R6
|
R5
|
Investor
|
American Beacon AHL Managed Futures Strategy Fund
|
AHLAX
|
AHLCX
|
AHLYX
|
|
AHLIX
|
AHLPX
|
American Beacon AHL Multi-Alternatives Fund
|
AHMAX
|
AHMCX
|
AHMYX
|
AHMRX
|
|
|
American Beacon AHL TargetRisk Fund
|
AHTAX
|
AHACX
|
AHTYX
|
|
AHTIX
|
AHTPX
|
Strategy/Risk
|
American Beacon AHL Managed Futures Strategy Fund
|
American Beacon AHL Multi-Alternatives Fund
|
American Beacon AHL TargetRisk Fund
|
Borrowing Risk
|
X
|
X
|
X
|
Cash Equivalents and Other Short-Term Investments
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
Commodity Instruments
|
X
|
X
|
X
|
Cover and Asset Segregation
|
X
|
X
|
X
|
Currencies Risk
|
X
|
X
|
X
|
Cybersecurity and Operational Risk
|
X
|
X
|
X
|
Derivatives
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
|
X
|
X
|
X
|
• Non-Deliverable Currency Forwards
|
X
|
X
|
X
|
|
X
|
X
|
X
|
Strategy/Risk
|
American Beacon AHL Managed Futures Strategy Fund
|
American Beacon AHL Multi-Alternatives Fund
|
American Beacon AHL TargetRisk Fund
|
• Commodity Futures Contracts Risk
|
X
|
X
|
X
|
• Futures Contracts on Security Indices
|
X
|
X
|
X
|
|
X
|
||
|
X
|
X
|
X
|
• Commodities Swaps
|
X
|
X
|
X
|
• Credit Default Swaps
|
X
|
X
|
X
|
• Currency Swaps
|
X
|
X
|
X
|
• Equity Swaps
|
X
|
||
• Interest Rate and Inflation Swaps
|
X
|
X
|
X
|
• Total Return Swaps
|
X
|
X
|
X
|
Expense Risk
|
X
|
X
|
X
|
Fixed-Income Investments
|
X
|
X
|
X
|
|
X
|
||
|
X
|
||
Foreign Debt Securities
|
X
|
X
|
X
|
Foreign Securities
|
X
|
X
|
X
|
|
X
|
||
|
X
|
X
|
X
|
|
X
|
X
|
|
Illiquid and Restricted Securities
|
X
|
X
|
X
|
Inflation-Indexed Securities
|
X
|
X
|
X
|
Interfund Lending
|
X
|
X
|
X
|
Issuer Risk
|
X
|
X
|
X
|
Leverage Risk
|
X
|
X
|
X
|
Model and Data Risk
|
X
|
X
|
X
|
Other Investment Company Securities and Exchange-Traded Products
|
X
|
X
|
X
|
|
X
|
X
|
X
|
Quantitative Strategy Risk
|
X
|
X
|
X
|
Repurchase Agreements
|
X
|
X
|
X
|
Reverse Repurchase Agreements
|
X
|
X
|
X
|
Separately Traded Registered Interest and Principal Securities and Other Zero-Coupon Obligations
|
X
|
X
|
X
|
Sovereign and Quasi-Sovereign Government and Supranational Debt
|
X
|
X
|
X
|
Time-Zone Arbitrage
|
X
|
X
|
X
|
U.S. Government Agency Securities
|
X
|
X
|
X
|
U.S. Treasury Obligations
|
X
|
X
|
X
|
Valuation Risk
|
X
|
X
|
X
|
When-Issued and Forward Commitment Transactions
|
X
|
■
|
Bank Deposit Notes. Bank deposit notes are obligations of a bank that provide an alternative to certificates of deposit. Similar to certificates of deposit, deposit notes represent bank level investment and, therefore, are senior to all holding company corporate debt. Bank deposit notes rank junior to domestic deposit liabilities of the bank and pari passu with other senior, unsecured obligations of the bank. Typically, bank deposit notes are not insured by the Federal Deposit Insurance Corporation or any other insurer.
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Bankers’ Acceptances. Bankers’ acceptances are short-term credit instruments designed to enable businesses to obtain funds to finance commercial transactions. Generally, an acceptance is a time draft drawn on a bank by an exporter or an importer to obtain a stated amount of funds to pay for specific merchandise. The draft is then “accepted” by a bank that, in effect, unconditionally guarantees to pay the face value of the instrument on its maturity date. The acceptance may then be held by the accepting bank as an earning asset or it may be sold in the secondary market at the going rate of discount for a specific maturity. Most acceptances have maturities of six months or less. Bankers’ acceptances rank junior to domestic deposit liabilities of the bank and pari passu with other senior, unsecured obligations of the bank.
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■
|
Bearer Deposit Notes. Bearer deposit notes, or bearer bonds, are bonds or debt securities that entitle the holder of the document to ownership or title in the deposit. Such notes are typically unregistered, and whoever physically holds the bond is presumed to be the owner of the instrument. Recovery of the value of a bearer bond in the event of its loss or destruction usually is impossible. Interest is typically paid upon presentment of an interest coupon for payment.
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■
|
CDs. CDs are negotiable certificates issued against funds deposited in an eligible bank (including its domestic and foreign branches, subsidiaries and agencies) for a definite period of time and earning a specified rate of return. U.S. dollar denominated CDs issued by banks abroad are known as Eurodollar CDs. CDs issued by foreign branches of U.S. banks are known as Yankee CDs.
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■
|
Commercial Paper. Commercial paper is a short-term debt security issued by a corporation, bank, municipality, or other issuer, usually for purposes such as financing current operations. A Fund may invest in commercial paper that cannot be resold to the public without an effective registration statement under the Securities Act. While some restricted commercial paper normally is deemed illiquid, in certain cases it may be deemed liquid.
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■
|
Government Money Market Funds. A Fund may invest cash balances in money market funds that are registered as investment companies under the Investment Company Act, including money market funds that are advised by the Manager. Money market funds invest in highly-liquid, short-term instruments, which include cash and cash equivalents, and debt securities with high credit ratings and short-term maturities, such as U.S. Treasuries. A “government money market fund” is required to invest at least 99.5% of its total assets in cash, U.S. government securities, and/or repurchase agreements that are fully collateralized by government securities or cash. Government securities include any security issued or guaranteed as to principal or interest by the U.S. government and its agencies or instrumentalities. By investing in a money market fund, a Fund becomes a shareholder of that money market fund. As a result, Fund shareholders indirectly bear their proportionate share of the expenses of the money market funds in which a Fund invests in addition to any fees and expenses Fund shareholders directly bear in connection with a Fund’s own operations. These expenses may include, for example, advisory and administrative fees, including advisory fees charged by the Manager to any applicable money market funds advised by the Manager. These other fees and expenses are reflected in the Fees and Expenses Table for a Fund in its Prospectus, if applicable. Shareholders also would be exposed to the risks associated with money market funds and the portfolio investments of such money market funds, including that a money market fund’s yield will be lower than the return that a Fund would have derived from other investments that would provide liquidity. Although a 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 money market fund’s investments, increases in interest rates and deteriorations in the credit quality of the instruments the money market fund has purchased can cause the price of a money market security to decrease and may reduce the money market fund’s yield. In addition, a money market fund is subject to the risk that the value of an investment may be eroded over time by inflation. Factors that could adversely affect the value of a money market fund’s shares include, among other things, a sharp rise in interest rates, an illiquid market for the securities held by the money market fund, a high volume of redemption activity in a money market fund’s shares, and a credit event or credit rating downgrade affecting one or more of the issuers of securities held by the money market fund. There can be no assurance that a money market fund will maintain a $1.00 per share net asset value (“NAV”) at all times.
|
■
|
Government Obligations. Government obligations may include U.S. Treasury securities, Treasury inflation-protected securities, and other debt instruments backed by the full faith and credit of the United States, or debt obligations of U.S. Government-sponsored entities.
|
■
|
Repurchase Agreements. Repurchase agreements are agreements pursuant to which a Fund purchases securities from a bank that is a member of the Federal Reserve System (or a foreign bank or U.S. branch or agency of a foreign bank), or from a securities dealer, that agrees to repurchase the securities from a Fund at a higher price on a designated future date. Repurchase agreements generally are for a short period of time, usually less than a week. Costs, delays, or losses could result if the selling party to a repurchase agreement becomes bankrupt or otherwise defaults.
|
■
|
Short-term Corporate Debt Securities. Short-term corporate debt securities are securities and bonds issued by corporations with shorter terms to maturity. Corporate securities generally bear a higher risk than U.S. government bonds.
|
■
|
Time Deposits. Time deposits, also referred to as “fixed time deposits,” are non-negotiable deposits maintained at a banking institution for a specified period of time at a specified interest rate. Time deposits may be withdrawn on demand by the investor, but may be subject to early withdrawal penalties which vary depending upon market conditions and the remaining maturity of the obligation. There are no contractual restrictions on the right to transfer a beneficial interest in a time deposit to a third party, although there is no market for such deposits.
|
■
|
Contracts for Differences — A contract for difference (“CFD”) is a contract in which one party agrees to pay the other party an amount of money based on the difference between the current value of an asset (such as a single security, a basket of securities or an index) and its value on a specified date in the future. CFDs allow a Fund to take a long or short position without having to own the reference security or index. A CFD is a privately negotiated over-the-counter contract. Both buyer and seller generally are required to post margin, which is adjusted daily, and adverse market movements against the underlying asset may require the buyer to make additional margin payments. The buyer may also pay to the seller a financing rate on the notional amount of the capital employed by the seller, less the margin deposit. A CFD is usually terminated at the buyer’s initiative. By entering into a CFD transaction, a Fund could incur losses because it would face many of the same types of risks as owning the underlying asset directly. As with other types of swap transactions, CFDs also carry counterparty risk, which is the risk that the counterparty to the CFD transaction may be unable or unwilling to make payments to or otherwise honor its financial obligations under the terms of the contract, that the parties may disagree as to the meaning or application of contractual terms, or that the asset may not perform as expected. CFDs are similar to total return swaps, except that payment only occurs once, on the contract expiration date, whereas payment on total return swaps typically occurs at agreed upon intervals.
|
■
|
Forward
Contracts. A Fund may enter into forward contracts. Forward contracts are a type of derivative instrument that obligate the
purchaser to take delivery of, or cash settle a specific amount of, a commodity, security or obligation underlying the contract at a
specified time in the future for a specified price. Likewise, the seller incurs an obligation to deliver the specified amount of the
underlying asset against receipt of the specified price. Generally, forward contracts are traded through financial institutions
acting as market-makers, on certain securities exchanges, or over-the-counter,and the protections afforded to investors may vary
depending on the trading environment. This is distinguishable from futures contracts, which are traded on U.S. and foreign
commodities exchanges.
|
Forward
contracts are often negotiated on an individual basis and are not standardized. The market for forward contracts is substantially
unregulated, as there is no limit on daily price movements and speculative position limits are not applicable. The principals
who deal in certain forward contract markets are not required to continue to make markets in the underlying reference
assets in which they trade and these markets can experience periods of illiquidity, sometimes of significant duration.
There have been periods during which certain participants in forward contract markets have refused to quote prices for
certain underlying references or have quoted prices with an unusually wide spread between the price at which they were
prepared to buy and that at which they were prepared to sell. At or prior to maturity of a forward contract, a Fund may
enter into an offsetting contract and may incur a loss to the extent there has been adverse movement in forward contract
prices. The liquidity of the markets for forward contracts depends on participants entering into offsetting transactions
rather than making or taking delivery. To the extent participants make or take delivery, liquidity in the market for forwards
could be reduced. A relatively small price movement in a forward contract may result insubstantial losses to a Fund, exceeding
the amount of the margin paid. Forward contracts can increase a Fund’s risk exposure to underlying reference assets
and their attendant risks.
|
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 may 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.
|
■
|
Forward Foreign Currency Contracts. A Fund may enter into forward foreign currency contracts (“forward currency contracts”), which are a type of derivative instrument, for a variety of reasons. A forward currency contract involves an obligation to purchase or sell a specified currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties at a price set at the time of the contract. Because these forward currency contracts normally are settled through an exchange of currencies, they are traded in the interbank market directly between currency traders (usually large commercial banks) and their customers.
|
Forward currency contracts may serve as long hedges. For example, a Fund may purchase a forward currency contract to lock in the U.S. dollar price of a security denominated in a foreign currency that it intends to acquire. Forward currency contract transactions also may serve as short hedges. For example, a Fund may sell a forward currency contract to lock in the U.S. dollar equivalent of the proceeds from the anticipated sale of a security or from a dividend or interest payment on a security denominated in a foreign currency.
|
A Fund may enter into forward currency contracts to sell a foreign currency for a fixed U.S. dollar amount approximating the value of some or all of its respective portfolio securities denominated in such foreign currency. In addition, a Fund may use forward currency contracts when the sub-advisor wishes to “lock in” the U.S. dollar price of a security when a Fund is purchasing or selling a security denominated in a foreign currency or anticipates receiving a dividend or interest payment denominated in a foreign currency.
|
A Fund may enter into forward currency contracts for the purchase or sale of a specified currency at a specified future date either with respect to specific transactions or with respect to portfolio positions in order to minimize the risk to a Fund from adverse changes in the relationship between the U.S. dollar and foreign currencies.
|
A Fund may use forward currency contracts to seek to hedge against, or profit from, changes in the value of a particular currency by using forward currency contracts on another foreign currency or a basket of currencies, the value of which the sub-advisor believes will have a positive correlation to the values of the currency being hedged. When hedging, use of a different foreign currency magnifies the risk that movements in the price of the forward contract will not correlate or will correlate unfavorably with the foreign currency being hedged.
|
In addition, a Fund may use forward currency contracts to shift exposure to foreign currency fluctuations from one country to another. For example, if a Fund owned securities denominated in a foreign currency that the sub-advisor believed would decline relative to another currency, it might enter into a forward currency contract to sell an appropriate amount of the first foreign currency, with payment to be made in the second currency. Transactions that involve two foreign currencies are sometimes referred to as “cross hedging.” Use of a different foreign currency magnifies a Fund’s exposure to foreign currency exchange rate fluctuations.
|
A Fund also may enter into forward currency contracts for non-hedging purposes if a foreign currency is anticipated to appreciate or depreciate in value, but securities denominated in that currency do not present attractive investment opportunities and are not held in a Fund’s investment portfolio.
|
The cost to a Fund of engaging in forward currency contracts varies with factors such as the currency involved, the length of the contract period and the market conditions then prevailing. Because forward currency contracts usually are entered into on a principal basis, no fees or commissions are involved. When a Fund enters into a forward currency contract, it relies on the counterparty to make or take delivery of the underlying currency at the maturity of the contract. Failure by the counterparty to do so would result in the loss of any expected benefit of the transaction.
|
Sellers or purchasers of forward currency contracts can enter into offsetting closing transactions, similar to closing transactions on futures, by purchasing or selling, respectively, an instrument identical to the instrument sold or bought, respectively. Secondary markets generally do not exist for forward currency contracts, however, with the result that closing transactions generally can be made for forward currency contracts only by negotiating directly with the counterparty. Thus, there can be no assurance that a Fund will in fact be able to close out a forward currency contract at a favorable price prior to maturity. In addition, in the event of insolvency of the counterparty, a Fund might be unable to close out a forward
|
currency contract at any time prior to maturity. In either event, a Fund would continue to be subject to market risk with respect to the position, and would continue to be required to maintain a position in the securities or currencies that are the subject of the hedge or to maintain cash or securities.
|
The precise matching of forward currency contract amounts and the value of securities whose U.S. dollar value is being hedged by those contracts involved generally will not be possible because the value of such securities, measured in the foreign currency, will change after the forward currency contract has been established. Thus, a Fund might need to purchase or sell foreign currencies in the spot (cash) market to the extent such foreign currencies are not covered by forward contracts. The projection of short-term currency market movements is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain.
|
A Fund bears the risk of loss of the amount expected to be received under a forward currency contract in the event of the default or bankruptcy of a counterparty. If such a default occurs, a Fund may have contractual remedies pursuant to the forward currency contract, but such remedies may be subject to bankruptcy and insolvency laws which could affect a Fund’s rights as a creditor.
|
At the maturity of a forward contract, a Fund may sell the portfolio security and make delivery of the foreign currency, or it may retain the security and either extend the maturity of the forward contract (by “rolling” that contract forward) or may initiate a new forward contract. If a Fund retains the portfolio security and engages in an offsetting transaction, a Fund will incur a gain or a loss (as described below) to the extent that there has been movement in forward contract prices. If a Fund engages in an offsetting transaction, it may subsequently enter into a new forward contract to sell the foreign currency.
|
Should forward prices decline during the period between a Fund’s entering into a forward contract for the sale of a foreign currency and the date it enters into an offsetting contract for the purchase of the foreign currency, a Fund will realize a gain to the extent the price of the currency it has agreed to sell exceeds the price of the currency it has agreed to purchase. Should forward prices increase, a Fund will suffer a loss to the extent the price of the currency it has agreed to purchase exceeds the price of the currency it has agreed to sell.
|
Forward currency contracts in which a Fund may engage include foreign exchange forwards. The consummation of a foreign exchange forward requires the actual exchange of the principal amounts of the two currencies in the contract (i.e., settlement on a physical basis). Because foreign exchange forwards are physically settled through an exchange of currencies, they are traded in the interbank market directly between currency traders (usually large commercial banks) and their customers. A foreign exchange forward generally has no deposit requirement, and no commissions are charged at any stage for trades; foreign exchange dealers realize a profit based on the difference (the spread) between the prices at which they are buying and the prices at which they are selling various currencies. When a Fund enters into a foreign exchange forward, it relies on the counterparty to make or take delivery of the underlying currency at the maturity of the contract. Failure by the counterparty to do so would result in the loss of any expected benefit of the transaction.
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A Fund may be required to obtain the currency that it must deliver under the foreign exchange forward through the sale of portfolio securities denominated in such currency or through conversion of other assets of a Fund into such currency. When a Fund engages in foreign currency transactions for hedging purposes, it will not enter into foreign exchange forwards to sell currency or maintain a net exposure to such contracts if their consummation would obligate a Fund to deliver an amount of foreign currency materially in excess of the value of its portfolio securities or other assets denominated in that currency.
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Non-Deliverable Currency Forwards. A Fund also may enter into NDFs. NDFs are cash-settled, short-term forward contracts on foreign currencies (each a “Reference Currency”), generally on currencies that are non-convertible, and may be thinly traded or illiquid. NDFs involve an obligation to pay a U. S. dollar amount (the “Settlement Amount”) equal to the difference between the prevailing market exchange rate for the Reference Currency and the agreed upon exchange rate (the “NDF Rate”), with respect to an agreed notional amount. NDFs have a fixing date and a settlement (delivery) date. The fixing date is the date and time at which the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The settlement (delivery) date is the date by which the payment of the Settlement Amount is due to the party receiving payment.
Although NDFs are similar to other forward currency contracts, NDFs do not require physical delivery of a Reference Currency on the settlement date. Rather, on the settlement date, one counterparty pays the Settlement Amount. NDFs typically may have terms from one month up to two years and are settled in U.S. dollars. A Fund will typically use NDFs for hedging purposes or for direct investment in a foreign country for income or gain. The use of NDFs for hedging or to increase income or gain may not be successful, resulting in losses to a Fund, and the cost of such strategies may reduce a Fund’s returns. NDFs are subject to many of the risks associated with derivatives in general and forward currency transactions including risks associated with fluctuations in foreign currency and the risk that the counterparty will fail to fulfill its obligations. In addition, pursuant to the Dodd-Frank Act and regulations adopted by the CFTC in connection with implementing the Dodd-Frank Act, NDFs are deemed to be swaps, and consequently commodity interests for purposes of amended Regulation 4.5. Although NDFs have historically been traded OTC, some are now exchange-traded pursuant to the Dodd-Frank Act. Under such circumstances, they will be centrally cleared and a secondary market for them will exist. All NDFs are subject to counterparty risk, which is the risk that the counterparty will not perform as contractually required under the NDF. With respect to NDFs that are centrally-cleared, a Fund could lose margin payments it has deposited with the clearing organization as well as the net amount of gains not yet paid by the clearing organization if it breaches its obligations under the NDF, becomes insolvent or goes into bankruptcy. In the event of bankruptcy of the clearing organization, the investor may be entitled to the net amount of gains the investor is entitled to receive plus the return of margin owed to it only in proportion to the amount received by the clearing organization’s other customers, potentially resulting in losses to the investor. NDFs that remain traded OTC will be subject to margin requirements for uncleared swaps and counterparty risk common to other swaps. |
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Futures Contracts. A Fund may enter into futures contracts. Futures contracts are a type of derivative instrument that obligate the purchaser to take delivery of, or cash settle a specific amount of, a commodity, security or other obligation underlying the contract at a specified time in the future for a specified price. Likewise, the seller incurs an obligation to deliver the specified amount of the underlying obligation against receipt of the specified price. Futures are traded on both U.S. and foreign commodities exchanges. The purchase of futures can serve as a long hedge, and the sale of futures can serve as a short hedge.
No price is paid upon entering into a futures contract. Instead, at the inception of a futures contract, a Fund is required to deposit “initial margin” consisting of cash, U.S. Government securities, suitable money market instruments, or liquid, high-grade debt securities in an amount set by the exchange on which the contract is traded and varying based on the volatility of the underlying asset. Margin must also be deposited when writing a call or put option on a futures contract, in accordance with applicable exchange rules. Unlike margin in securities transactions, initial margin on futures contracts does not represent a borrowing, but rather is in the nature of a performance bond or good-faith deposit that is returned to a Fund at the termination of the transaction if all contractual obligations have been satisfied. Under certain circumstances, such as periods of high volatility, a Fund may be required by a futures exchange to increase the level of its initial margin payment, and initial margin requirements might be increased generally in the future by regulatory action. Subsequent “variation margin” payments (sometimes referred to as “maintenance margin” payments) are made to and from the futures broker daily as the value of the futures position varies, a process known as “marking-to-market.” Variation margin does not involve borrowing, but rather represents a daily settlement of a Fund’s obligations to or from a futures broker. When a Fund purchases or sells a futures contract, it is subject to daily, or even intraday, variation margin calls that could be substantial in the event of adverse price movements. If a Fund has insufficient cash to meet daily or intraday variation margin requirements, it might need to sell securities at a time when such sales are disadvantageous. Purchasers and sellers of futures contracts can enter into offsetting closing transactions, by selling or purchasing, respectively, an instrument identical to the instrument purchased or sold. Positions in futures contracts may be closed only on a futures exchange or board of trade that trades that contract. A Fund intends to enter into futures contracts only on exchanges or boards of trade where there appears to be a liquid secondary market. However, there can be no assurance that such a market will exist for a particular contract at a particular time. In such event, it may not be possible to close a futures contract. Although many futures contracts by their terms call for the actual delivery or acquisition of the underlying asset, in most cases the contractual obligation is fulfilled before the date of the contract without having to make or take delivery of the securities or currency. The offsetting of a contractual obligation is accomplished by buying (or selling, as appropriate) on a commodities exchange an identical futures contract calling for delivery in the same month. Such a transaction, which is effected through a member of an exchange, cancels the obligation to make or take delivery of the securities or currency. Since all transactions in the futures market are made, offset or fulfilled through a clearinghouse associated with the exchange on which the contracts are traded, a Fund will incur brokerage fees when it purchases or sells futures contracts. If an offsetting purchase price is less than the original sale price, a Fund realizes a capital gain, or if it is more, a Fund realizes a capital loss. Conversely, if an offsetting sell price is more than the original purchase price, a Fund realizes a capital gain, or if it is less, a Fund realizes a capital loss. The Funds have no current intent to accept physical delivery in connection with the settlement of futures contracts. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price; once that limit is reached, no trades may be made that day at a price beyond the limit. Daily price limits do not limit potential losses because prices could move to the daily limit for several consecutive days with little or no trading, thereby preventing liquidation of unfavorable positions. If a Fund were unable to liquidate a futures contract due to the absence of a liquid secondary market or the imposition of price limits, it could incur substantial losses. A Fund would continue to be subject to market risk with respect to the position. In addition, a Fund would continue to be required to make daily variation margin payments and might be required to maintain the position being hedged by the futures contract or option thereon or to maintain cash or securities in a segregated account. The ordinary spreads between prices in the cash and futures markets, due to differences in the nature of those markets, are subject to distortions. First, all participants in the futures market are subject to initial deposit and variation margin requirements. Rather than meeting additional variation margin deposit requirements, investors may close futures contracts through offsetting transactions that could distort the normal relationship between the cash and futures markets. Second, the liquidity of the futures market depends on participants entering into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity in the futures market could be reduced, thus producing distortion. Third, from the point of view of speculators, the margin deposit requirements in the futures market are less onerous than margin requirements in the securities market. Therefore, increased participation by speculators in the futures market may cause temporary price distortions. Due to the possibility of distortion, a correct forecast of securities price or currency exchange rate trends by the sub-advisor may still not result in a successful transaction. Futures contracts also entail other risks. Although the use of such contracts may benefit a Fund, if investment judgment about the general direction of, for example, an index is incorrect, a Fund’s overall performance would be worse than if it had not entered into any such contract. There are differences between the securities and futures markets that could result in an imperfect correlation between the markets, causing a given transaction not to achieve its objectives. The degree of imperfection of correlation depends on circumstances such as variations in speculative market demand for futures, including technical influences in futures trading, and differences between the financial instruments being hedged and the instruments underlying the standard contracts available for trading in such respects as interest rate levels, maturities, and creditworthiness of issuers. A decision as to whether, when and how to hedge involves the exercise of skill and judgment, and even a well-conceived hedge may be unsuccessful to some degree because of market behavior or unexpected interest rate trends. |
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Commodity Futures Contracts Risk— There are several additional risks associated with transactions in commodity futures contracts.
Storage. Unlike the financial futures markets, in the commodity futures markets there are costs of physical storage associated with purchasing the underlying commodity. The price of the commodity futures contract will reflect the storage costs of purchasing the physical commodity, including the time value of money invested in the physical commodity. To the extent that the storage costs for an underlying commodity change while a Fund or its respective Subsidiary is invested in futures contracts on that commodity, the value of the futures contract may change proportionately. Reinvestment. In the commodity futures markets, producers of the underlying commodity may decide to hedge the price risk of selling the commodity by selling futures contracts to lock in the price of the commodity at delivery on a future date. In order to induce speculators to |
purchase the other side of the same futures contract, the commodity producer generally must sell the futures contract at a lower price than the expected future spot price. Conversely, if most hedgers in the futures market are purchasing futures contracts to hedge against a rise in prices, then speculators will only sell the other side of the futures contract at a higher futures price than the expected future spot price of the commodity. The changing nature of the hedgers and speculators in the commodity markets will influence whether futures prices are above or below the expected future spot price, which can have significant implications for a Fund or its respective Subsidiary. If the nature of hedgers and speculators in futures markets has shifted when it is time for a Fund to reinvest the proceeds of a maturing contract in a new futures contract, a Fund or its respective Subsidiary might reinvest at higher or lower futures prices, or choose to pursue other investments.
Other Economic Factors. The commodities that underlie commodity futures contracts may be subject to additional economic and non-economic variables, such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political and regulatory developments. These factors may have a larger impact on commodity prices and commodity-linked instruments, including futures contracts, than on traditional securities. Certain commodities are also subject to limited pricing flexibility because of supply and demand factors. Others are subject to broad price fluctuations as a result of the volatility of the prices for certain raw materials and the instability of supplies of other materials. These additional variables may create additional investment risks which subject a Fund’s or its respective Subsidiary’s investments to greater volatility than investments in traditional securities. |
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Futures Contracts on Security Indices. A Fund may enter into contracts providing for the making and acceptance of a cash settlement based upon changes in the value of an index of securities (“Index Futures Contracts”). The Funds use Index Futures Contracts to take long and short positions on indices based on the sub-advisor’s outlook on the direction of market prices. This may permit a Fund to avoid potential market and liquidity problems (e.g., driving up or forcing down the price by quickly purchasing or selling a portfolio security) that may result from increases or decreases in positions already held by a Fund. In general, each hedging transaction in Index Futures Contracts involves the establishment of a position that will move in a direction opposite to that of the investment being hedged. If these hedging transactions are successful, the futures positions taken for a Fund will rise in value by an amount that approximately offsets the decline in value of the portion of a Fund’s investments that are being hedged. Should general market prices move in an unexpected manner, the full anticipated benefits of Index Futures Contracts may not be achieved or a loss may be realized. Transactions in Index Futures Contracts involve certain risks. These risks could include a lack of correlation between the Index Futures Contract and the relevant index, a potential lack of liquidity in the market and incorrect assessments of market trends, which may result in worse overall performance than if an Index Futures Contract had not been entered into. Brokerage costs will be incurred and “margin” will be required to be posted and maintained as a good-faith deposit against performance of obligations under Index Futures Contracts written into by a Fund.
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Options. A Fund may purchase and sell put options and call options, each a type of derivative instrument, on securities and foreign currencies in standardized contracts traded on recognized securities exchanges, boards of trade, or similar entities, or quoted on the NASDAQ National Market System. A Fund will only write (sell) covered call and put options. A call option is “covered” if a Fund simultaneously holds an equivalent position in the security underlying the option. Where the underlying security is a convertible bond, the call option is considered to be uncovered until the option is exercised.
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An option is a contract that gives the purchaser (holder) of the option, in return for a premium, the right to buy from (call) or sell to (put) the seller (writer) of the option the security or currency underlying the option at a specified exercise price at any time during the term of the option (normally not exceeding nine months). The writer of an option has the obligation upon exercise of the option to deliver or pay the value of the underlying security or currency upon payment of the exercise price or to pay the exercise price upon delivery of the underlying security or currency.
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When a Fund writes a call option, it is obligated to sell a security to a purchaser at a specified price at any time until a certain date if the purchaser decides to exercise the option. A Fund will receive a premium for writing a call option. So long as the obligation of the call option continues, a Fund may be assigned an exercise notice, requiring it to deliver the underlying security against payment of the exercise price. A Fund may be obligated to deliver securities underlying an option at less than the market price. By writing a covered call option, a Fund forgoes, in exchange for the premium less the commission (“net premium”), the opportunity to profit during the option period from an increase in the market value of the underlying security or currency above the exercise price. If a call option that a Fund has written expires unexercised, a Fund will realize a gain in the amount of the premium; however, that gain may be offset by a decline in the market value of the underlying security during the option period. If a call option is exercised, a Fund will realize a gain or loss from the sale of the underlying security.
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When a Fund writes a put option, it is obligated to acquire a security at a certain price at any time until a certain date if the purchaser decides to exercise the option. A Fund will receive a premium for writing a put option. By writing a put option, a Fund, in exchange for the net premium received, accepts the risk of a decline in the market value of the underlying security or currency below the exercise price. A Fund may terminate its obligation as the writer of a call or put option by purchasing a corresponding option with the same exercise price and expiration date as the option previously written. If a put option that a Fund has written expires unexercised, a Fund will realize a gain in the amount of the premium. When a Fund writes an option, an amount equal to the net premium received by a Fund is included in the liability section of a Fund’s Statement of Assets and Liabilities as a deferred credit. The amount of the deferred credit will be subsequently marked to market to reflect the current market value of the option written. The current market value of a traded option is the last sale price or, in the absence of a sale, the mean between the closing bid and asked price. If an option expires unexercised on its stipulated expiration date or if a Fund enters into a closing purchase transaction, a Fund will realize a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was sold), and the deferred credit related to such option will be eliminated.
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A closing purchase transaction for exchange-traded options may be made only on a national securities exchange. It is impossible to predict the volume of trading that may exist in such options, and there can be no assurance that viable exchange markets will develop or continue. There is no assurance that a liquid secondary market on an exchange will exist for a particular option, or at any particular time, and for some options, such as OTC options, no secondary market on an exchange may exist. The hours of trading for options may not conform to the hours during which the underlying securities are traded. To the extent that the option markets close before the markets for the underlying securities, significant price and
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rate movements can take place in the underlying securities markets that cannot be reflected in the option markets. A Fund may use NDOs which are foreign exchange products designed to assist in reducing the foreign exchange risk, in particular situations when physical delivery of the underlying currencies is not required or not possible.
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A Fund may write (sell) and purchase covered call and put options on foreign currencies for hedging or non-hedging purposes. A Fund may use options on foreign currencies to protect against decreases in the U.S. dollar value of securities held or increases in the U.S. dollar cost of securities to be acquired by a Fund or to protect the U.S. dollar equivalent of dividends, interest, or other payments on those securities. In addition, a Fund may write and purchase covered call and put options on foreign currencies for non-hedging purposes (e.g., when the Manager or sub-advisor anticipates that a foreign currency will appreciate or depreciate in value, but securities denominated in that currency do not present attractive investment opportunities and are not held in a Fund’s investment portfolio). A Fund may write covered call and put options on any currency in order to realize greater income than would be realized on portfolio securities alone. Currency options have characteristics and risks similar to those of securities options, as discussed herein. Certain options on foreign currencies are traded on the OTC market and involve liquidity and credit risks that may not be present in the case of exchange-traded currency options.
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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 or indices based on a specified amount (the “notional” amount). Nearly any type of derivative, including forward contracts, can be structured as a swap. See “Derivatives” for a further discussion of derivatives risks. Swap agreements can be structured to provide exposure to a variety of different types of investments or market factors. For example, in an interest rate swap, fixed-rate payments may be exchanged for floating rate payments; in a currency swap, U.S. dollar-denominated payments may be exchanged for payments denominated in a foreign currency; and in a total return swap, payments tied to the investment return on a particular asset, group of assets or index may be exchanged for payments that are effectively equivalent to interest payments or for payments tied to the return on another asset, group of assets, or index. Swaps may have a leverage component, and adverse changes in the value or level of the underlying asset, reference rate or index can result in gains or losses that are substantially greater than the amount invested in the swap itself. Some swaps currently are, and more in the future will be, centrally cleared. Swaps that are centrally-cleared are exposed to the creditworthiness of the clearing organizations (and, consequently, that of their members - generally, banks and broker-dealers) involved in the transaction. For example, an investor could lose margin payments it has deposited with the clearing organization as well as the net amount of gains not yet paid by the clearing organization if it breaches its agreement with the investor or becomes insolvent or goes into bankruptcy. In the event of bankruptcy of the clearing organization, the investor may be able to recover only a portion of the net amount of gains on its transactions and of the margin owed to it, potentially resulting in losses to the investor. Swaps that are not centrally cleared involve the risk that a loss may be sustained as a result of the insolvency or bankruptcy of the counterparty or the failure of the counterparty to make required payments or otherwise comply with the terms of the agreement. If a counterparty’s creditworthiness declines, the value of the swap might decline, potentially resulting in losses to a Fund. Changing conditions in a particular market area, whether or not directly related to the referenced assets that underlie the swap agreement, may have an adverse impact on the creditworthiness of a counterparty. To mitigate this risk, a Fund will only enter into swap agreements with counterparties considered by the sub-advisor to present minimum risk of default, and a Fund normally obtains collateral to secure its exposure. Swaps involve the risk that, if the swap declines in value, additional margin would be required to maintain the margin level. The seller may require a Fund to deposit additional sums to cover this, and this may be at short notice. If additional margin is not provided in time, the seller may liquidate the positions at a loss, which may cause a Fund to owe money to the seller. The centrally cleared and OTC swap agreements into which a Fund enters normally provide for the obligations of a Fund and its counterparty in the event of a default or other early termination to be determined on a net basis. Similarly, periodic payments on a swap transaction that are due by each party on the same day normally are netted. The use of swap agreements requires special skills, knowledge and investment techniques that differ from those required for normal portfolio management. Swaps may be considered illiquid investments, and a Fund may be unable to sell a swap agreement to a third party at a favorable price; see “Illiquid and Restricted Securities” for a description of liquidity risk.
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Commodities Swaps. In a commodities swap transaction, the parties agree to exchange cash flows dependent upon the price of an underlying commodity. For example, an investment in a commodity swap agreement may involve the exchange of variable payments based upon market prices for a commodity. In a total return commodity swap, a fund will receive the price appreciation of a commodity index, a portion of the index, or a single commodity in exchange for paying an agreed-upon fee. If the commodity swap is for one period, a fund may pay a fixed fee, established at the outset of the swap. However, if the term of the commodity swap is more than one period, with interim swap payments, a fund may pay an adjustable or floating fee. With a “floating” rate, the fee may be pegged to a base rate and be adjusted each period. Therefore, if interest rates increase over the term of the swap contract, a fund may be required to pay a higher fee at each swap reset date.
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Credit Default Swaps. In a credit default swap, one party (the seller) agrees to make a payment to the other party (the buyer) in the event that a “credit event,” such as a default or issuer insolvency, occurs with respect to one or more underlying or “reference” bonds or other debt securities. A Fund may be either a seller or a buyer of credit protection under a credit default swap. The purchaser pays a fee during the life of the swap. If there is a credit event with respect to a referenced debt security, the seller under a credit default swap may be required to pay the buyer the par amount (or a specified percentage of the par amount) of that security in exchange for receiving the referenced security (or a specified alternative security) from the buyer. Credit default swaps may be on a single security, a basket of securities or on a securities index. Alternatively, the credit default swap may be cash settled, meaning that the seller will pay the buyer the difference between the par value and the market value of the defaulted bonds. If the swap is on a basket of securities (such as the CDX indices), the notional amount of the swap is reduced by the par amount of the defaulted bond, and the fixed payments are then made on the reduced notional amount.
Taking a long position in (i.e., acting as the seller under) a credit default swap increases the exposure to the specific issuers, and the seller could experience a loss if a credit event occurs and the credit of the reference entity or underlying asset has deteriorated. As a seller, a Fund would effectively add leverage because, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap. Taking a short position in (i.e., acting as the buyer under) a credit default swap results in opposite exposures for a Fund. The risks of being the buyer of credit default swaps include the cost of paying for credit protection if there are no credit events, pricing transparency when assessing |
the cost of a credit default swap, counterparty risk, and the need to fund any delivery obligation, particularly in the event of adverse pricing when purchasing bonds to satisfy a delivery obligation. Credit default swap buyers are also subject to counterparty risk since the ability of the seller to make required payments is dependent on its creditworthiness.
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Currency Swaps. 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. Currency swap agreements may be entered into on a net basis or may involve the delivery of the entire principal value of one designated currency in exchange for the entire principal value of another designated currency. In such cases, the entire principal value of a currency swap is subject to the risk that the counterparty will default on its contractual delivery obligations. Currency swaps are subject to currency risk.
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Equity Swaps. Equity swaps are contracts that allow one party to exchange the returns, including any dividend income, on an equity security or group of equity securities for another payment stream. Under an equity swap, payments may be made at the conclusion of the equity swap or periodically during its term. An equity swap may be used to invest in a market without owning or taking physical custody of securities in circumstances in which direct investment may be restricted for legal reasons or is otherwise deemed impractical or disadvantageous. To the extent that there is an imperfect correlation between the return on a Fund’s obligation to its counterparty under the equity swap and the return on related assets in its portfolio, the equity swap transaction may increase a Fund’s financial risk.
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Interest Rate and Inflation Swaps. In an interest rate swap, the parties exchange payments based on fixed or floating interest rates multiplied by a hypothetical or “notional” amount. For example, one party might agree to pay the other a specified fixed rate on the notional amount in exchange for recovering a floating rate on that notional amount. Interest rate swap agreements entail both interest rate risk and counterparty risk. The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index exceeds a predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling such interest rate cap. The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling such interest rate floor. There is a risk that based on movements of interest rates, the payments made under a swap agreement will be greater than the payments received. A Fund may also invest in inflation swaps, where an inflation rate index is used in place of an interest rate index.
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Total Return Swaps. In a total return swap transaction, one party agrees to pay the other party an amount equal to the total return on a defined underlying asset such as a security or basket of securities or on a referenced index during a specified period of time. In return, the other party would make periodic payments based on a fixed or variable interest rate or on the total return from a different underlying asset or index. Total return swap agreements may be used to gain exposure to price changes in an overall market or an asset. Total return swaps may effectively add leverage to a Fund’s portfolio because, in addition to its net assets, a Fund would be subject to investment exposure on the notional amount of the swap, which may exceed a Fund’s net assets. If a Fund is the total return receiver in a total return swap, then the credit risk for an underlying asset is transferred to a Fund in exchange for its receipt of the return (appreciation) on that asset or index. If a Fund is the total return payer, it is hedging the downside risk of an underlying asset or index but it is obligated to pay the amount of any appreciation on that asset or index. Total return swaps could result in losses if the underlying asset or index does not perform as anticipated. Written total return swaps can have the potential for unlimited losses.
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Corporate Debt and Other Fixed-Income Securities. Typically, the values of fixed income securities change inversely with prevailing interest rates. Therefore, a fundamental risk of fixed income securities is interest rate risk, which is the risk that their value generally will decline as prevailing interest rates rise, which may cause a Fund’s NAV to likewise decrease, and vice versa. How specific fixed income securities may react to changes in interest rates will depend on the specific characteristics of each security. For example, while securities with longer maturities tend to produce higher yields, they also tend to be more sensitive to changes in prevailing interest rates. They are therefore more volatile than shorter-term securities and are subject to greater market fluctuations as a result of changes in interest rates. Fixed income securities are also subject to credit risk, which is the risk that the credit strength of an issuer of a fixed income security will weaken and/or that the issuer will be unable to make timely principal and interest payments, and that the security may go into default.
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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. These bonds are considered speculative with respect to the issuer’s ability to pay interest and repay principal by rating organizations. For example, Moody’s, S&P Global, and Fitch, Inc. currently rate them below Baa3, BBB- and BBB-, respectively. Please see “Appendix A: Ratings Definitions” below 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 lower 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 certain 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. The lower rating of certain high-yield corporate income securities reflects a greater possibility that the financial condition of the issuer or adverse changes in general economic conditions may impair the ability of the issuer to pay income and principal. Changes by rating agencies in their ratings of a fixed-income security also may affect the value of these investments; however, allocating investments in a Fund among securities of different issuers should reduce the risks of owning any such securities separately. The prices of these high-yield securities tend to be less sensitive to interest rate changes than higher-rated investments, but more sensitive to adverse economic changes or individual corporate developments. During economic downturns, periods of rising interest rates, or when inflation or deflation occurs, highly leveraged issuers may experience financial stress that adversely affects their ability to service principal and interest payment obligations, to meet projected business goals or to obtain additional financing, and the markets for their securities may be more volatile. They may also not have more traditional methods of financing available to them and may be unable to repay debt at maturity by refinancing. In addition, lower-rated securities may experience substantial price declines when there is an expectation that issuers of such securities might experience financial difficulties. As a result, the yields on lower-rated securities can rise dramatically. However, the higher yields of high-yield securities may not reflect the value of the income stream that holders of such securities may expect, but rather the risk that such securities may lose a substantial portion of their value as a result of their issuer’s financial restructuring or default. If an issuer defaults, a Fund may incur additional expenses to seek recovery. Additionally, accruals of interest income for a Fund may have to be adjusted in the event of default. In the event of an issuer’s default, a Fund may write off prior income accruals for that issuer, resulting in a reduction in a Fund’s current dividend payment. In the event of an in court or out of court restructuring of high-yield bond in which a Fund invests, a Fund may acquire (and subsequently sell) equity securities or exercise warrants that it receives. In addition, the market for high-yield securities generally is less robust and active than that for higher-rated securities, which may limit a Fund’s ability to sell such securities at fair value in response to changes in the economy or financial markets and could make the valuation of these portfolio securities more difficult.
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Emerging Market Securities. A Fund may invest in emerging market securities. 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 markets indices. Investments in emerging market country securities involve special risks. The economies, markets and political structures of a number of the emerging market countries in which a Fund can invest do not compare favorably with the United States and other mature economies in terms of wealth and stability. Therefore, investments in these countries may be riskier, and will be subject to erratic and abrupt price movements. These risks are discussed below.
Economies: The economies of emerging market countries may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross domestic product, rate of inflation, currency depreciation, reliable access to capital, capital reinvestment, resource self-sufficiency, balance of payments and trade difficulties. Some economies are less well developed and less diverse (for example, Latin America, Eastern Europe and certain Asian countries), and may be heavily dependent upon international trade, as well as the economic conditions in the countries with which they trade. Such economies accordingly have been, and may continue to be, adversely affected by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist or retaliatory measures imposed or negotiated by the countries with which they trade. Similarly, many of these countries have historically experienced, and may continue to experience, high rates of inflation, high interest rates, exchange rate fluctuations, large amounts of national and external debt, severe recession, and extreme poverty and unemployment. The economies of emerging market countries may be based predominately on only a few industries or may be dependent on revenues from participating commodities or on international aid or developmental assistance. Emerging market economies may develop unevenly or may never fully develop. Investments in countries that have recently begun moving away from central planning and state-owned industries toward free markets, such as the Eastern European, Russian or Chinese economies, should be regarded as speculative. Governments: Emerging markets may have uncertain national policies and social, political and economic instability. While government involvement in the private sector varies in degree among emerging market countries, such involvement may in some cases include government ownership of companies in certain sectors, wage and price controls or imposition of trade barriers and other protectionist measures. In the past, governments of such nations have expropriated substantial amounts of private property, and most claims of the property owners have never been fully settled. There is no assurance that such expropriations will not reoccur. In addition, there is no guarantee that some future economic or political crisis will not lead to price controls, forced mergers of companies, confiscatory taxation or creation of government monopolies to the possible detriment of a Fund’s investments. In such event, it is possible that a Fund could lose the entire value of its investments in the affected markets. Emerging market countries may have national policies that limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries deemed sensitive to national interests. Repatriation of investment income, capital and the proceeds of sales by foreign investors may require governmental registration and/or approval in some emerging market countries. In addition, if a Fund invests in a market where restrictions are considered acceptable, a country could impose new or additional repatriation restrictions after investment that are unacceptable. This might require, among other things, applying to the appropriate authorities for a waiver of the restrictions or engaging in transactions in other markets designed to offset the risks of decline in that country. Further, some attractive securities may not be available, or may require a premium for purchase, due to foreign shareholders already holding the maximum amount legally permissible. In addition to withholding taxes on investment income, some countries with emerging capital markets may impose differential capital gain taxes on foreign investors. An issuer or governmental authority that controls the repayment of an emerging market country’s debt may not be able or willing to repay the principal and/or interest when due in accordance with the terms of such debt. A debtor’s willingness or ability to repay principal and interest due in a timely manner may be affected by, among other factors, its cash flow situation, and, in the case of a government debtor, the extent of its foreign reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole and the political constraints to which a government debtor may be subject. Government debtors may default on their debt and may also be dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce principal and interest arrearages on their debt. Holders of government debt may be requested to participate in the rescheduling of such debt and to extend further loans to government debtors. There may be limited legal recourse against the issuer and/or guarantor. Remedies must, in some cases, be pursued in the courts of the defaulting party itself, and the ability of the holder of foreign government fixed-income securities to obtain recourse may be subject to the political climate in the relevant country. In addition, no assurance can be given that the holders of commercial bank debt will not contest |
payments to the holders of other foreign government debt obligations in the event of default under their commercial bank loan agreements.
Capital Markets: The capital markets in emerging market countries may be underdeveloped. They may have low or non-existent trading volume, resulting in a lack of liquidity and increased volatility in prices for such securities, as compared to securities from more developed capital markets. Emerging market securities may be substantially less liquid and more volatile than those of mature markets, and securities may be held by a limited number of investors. This may adversely affect the timing and pricing of a Fund’s acquisition or disposal of securities. There may be less publicly available information about emerging markets than would be available in more developed capital markets, and such issuers may not be subject to accounting, auditing and financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment measurements used in the U.S., may not be applicable. Investing in certain countries with emerging capital markets may entail purchasing securities issued by or on behalf of entities that are insolvent, bankrupt, in default or otherwise engaged in an attempt to reorganize or reschedule their obligations, and in entities that have little or no proven credit rating or credit history. In any such case, the issuer’s poor or deteriorating financial condition may increase the likelihood that the investing Fund will experience losses or diminution in available gains due to bankruptcy, insolvency or fraud. There may also be custodial restrictions or other non-U.S. or U.S. governmental laws or restrictions applicable to investments in emerging market countries. Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those in developed markets, in part because a Fund may use brokers and counterparties that are less well capitalized, and custody and registration of assets in some countries may be unreliable. Supervisory authorities also may be unable to apply standards comparable to those in developed markets. Thus, there may be risks that settlement may be delayed and that cash or securities belonging to a Fund may be in jeopardy because of failures of or defects in the systems. In particular, market practice may require that payment be made before receipt of the security being purchased or that delivery of a security be made before payment is received. In such cases, default by a broker or bank (the “counterparty”) through whom the transaction is effected might cause a Fund to suffer a loss. There can be no certainty that a Fund will be successful in eliminating counterparty risk, particularly as counterparties operating in emerging market countries frequently lack the substance or financial resources of those in developed countries. There may also be a danger that, because of uncertainties in the operation of settlement systems in individual markets, competing claims may arise with respect to securities held by or to be transferred to a Fund. Regulatory authorities in some emerging markets currently do not provide the Public Company Accounting Oversight Board with the ability to inspect public accounting firms as required by U.S. law, including sufficient access to inspect audit work papers and practices, or otherwise do not cooperate with U.S. regulators, which potentially could expose investors to significant risks. Legal Systems: Investments in emerging market countries may be affected by the lack, or relatively early development, of legal structures governing private and foreign investments and private property. Such capital markets are emerging in a dynamic political and economic environment brought about by events over recent years that have reshaped political boundaries and traditional ideologies. Many emerging market countries have little experience with the corporate form of business organization and may not have well-developed corporation and business laws or concepts of fiduciary duty in the business context. The organizational structures of certain issuers in emerging markets may limit investor rights and recourse. A Fund may encounter substantial difficulties in obtaining and enforcing judgments against individuals and companies located in certain emerging market countries, either individually or in combination with other shareholders. It may be difficult or impossible to obtain or enforce legislation or remedies against governments, their agencies and sponsored entities. Additionally, in certain emerging market countries, fraud, corruption and attempts at market manipulation may be more prevalent than in developed market countries. Shareholder claims that are common in the U.S. and are generally viewed as determining misconduct, including class action securities law and fraud claims, generally are difficult or impossible to pursue as a matter of law or practicality in many emerging markets. The laws in certain countries with emerging capital markets may be based upon or be highly influenced by religious codes or rules. The interpretation of how these laws apply to certain investments may change over time, which could have a negative impact on those investments and a Fund. Russia launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting future market disruptions, including declines in its stock markets and the value of the ruble against the U.S. dollar, are impossible to predict, but could be significant. Any such disruptions caused by Russian military action or other actions (including cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s economy and Russian issuers of securities in which a Fund invests. Actual and threatened responses to such activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian companies, may impact Russia’s economy and Russian issuers of securities in which a Fund invests. Actual and threatened responses to such military action may also impact the markets for certain Russian commodities, such as oil and natural gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such sectors globally, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact a Fund’s performance and the value of an investment in a Fund, even if a Fund does not have direct exposure to Russian issuers or issuers in other countries affected by the invasion. Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy. These sanctions could also result in the immediate freeze of Russian securities and/or funds invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may further impair the value and liquidity of Russian securities. |
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European Securities. A Fund’s performance may be affected by political, social and economic conditions in Europe, such as the growth of the economic output (the gross national product of the countries in the region), the rate of inflation, the rate at which capital is reinvested into European economies, the success of governmental actions to reduce budget deficits, the resource self-sufficiency of European countries, interest rates in
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European countries, monetary exchange rates between European countries, and conflict between European countries.
The Economic and Monetary Union (“EMU”) of the European Union (“EU”) is comprised of EU members that have adopted the euro currency. By adopting the euro as its currency, a member state relinquishes control of its own monetary policies and is subject to fiscal and monetary controls. The EMU requires Eurozone countries to comply with restrictions on interest rates, deficits, debt levels, and inflation rates, fiscal and monetary controls, and other factors. Although the EMU has adopted a common currency and central bank, there is no fiscal union; therefore, money does not automatically flow from countries with surpluses to those with deficits. These restrictions and characteristics may limit the ability of EMU member countries to implement monetary policy to address regional economic conditions and significantly impact every European country and their economic partners, including those countries that are not members of the EMU. In addition, those EU member states that are not currently in the Eurozone (Bulgaria, the Czech Republic, Denmark, Hungary, Poland, Romania, and Sweden), excluding Denmark, are required to seek to comply with convergence criteria to permit entry to the Eurozone. The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. Decreasing imports or exports, changes in governmental or other regulations on trade, changes in the exchange rate of the euro or other European currency, the threat of default or actual default by one or more EU member countries, or other European countries, on its sovereign debt, and/or an economic recession in one or more European countries may have a significant adverse effect on the economies of other European countries and major trading partners outside Europe. The European financial markets have experienced and may continue to experience volatility and adverse trends due to concerns relating to economic downturns; rising government debt levels and national unemployment; the possible default of government debt in several European countries; public health crises; political unrest; economic sanctions; inflation; energy crises; the future of the euro as a common currency; and war and military conflict, such as the Russian invasion of Ukraine. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. Responses to financial problems by European governments, central banks, and others, including austerity measures and other reforms, may not produce the desired results, may result in social unrest and may limit future growth and economic recovery or may have unintended consequences. In order to prevent further economic deterioration, certain countries, without prior warning, can institute “capital controls.” Countries may use these controls to restrict volatile movements of capital entering and exiting their country. Such controls may negatively affect a Fund’s investments. In addition, one or more countries may abandon the euro and/or withdraw from the EU. The impact of these actions, especially if they occur in a disorderly fashion, could be significant and far-reaching. Many European nations are susceptible to economic risks associated with high levels of debt. Non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts, and other issuers have faced difficulties obtaining credit or refinancing existing obligations. A default or debt restructuring by any European country could adversely impact holders of that country’s debt and sellers of credit default swaps linked to that country’s creditworthiness, which may be located in other countries. Such a default or debt restructuring could affect exposures to other European countries and their financial companies as well. Further defaults on, or restructurings of, the debt of governments or other entities could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, issuers may face difficulties obtaining credit or refinancing existing obligations; financial institutions may require government or central bank support, or need to raise capital, and/or be impaired in their ability to extend credit. Furthermore, certain European countries have had to accept assistance from supranational agencies such as the International Monetary Fund, the European Stability Mechanism or others. The European Central Bank has also intervened to purchase Eurozone debt in an attempt to stabilize markets and reduce borrowing costs. There can be no assurance that any creditors or supranational agencies will continue to intervene or provide further assistance, and markets may react adversely to any expected reduction in the financial support provided by these creditors. Certain European countries have also developed increasingly strained relationships with the U.S., and if these relationships were to worsen, they could adversely affect European issuers that rely on the U.S. for trade. In addition, the national politics of European countries have been unpredictable and subject to influence by disruptive political groups, ideologies, and polarizing political events such as the conflict between Israel and Hamas. Secessionist movements, as well as government or other responses to such movements, may create instability and uncertainty in a country or region. European governments may be subject to change and such countries may experience social and political unrest. Unanticipated or sudden political or social developments may result in sudden and significant investment losses. The occurrence of terrorist incidents throughout Europe and in the Middle East also could impact financial markets, as could military conflicts. For example, Houthi attacks on commercial shipping in the Red Sea and Gulf of Aden, and retaliatory action, may disrupt supply chains and cause difficulties for impacted businesses, including those that wish to ship goods through that route. The impact of these kinds of events could be significant and far-reaching and materially impact the value and liquidity of a Fund’s investments. Russia’s war with Ukraine has negatively impacted European economic activity. The Russia/Ukraine war and Russia’s response to sanctions imposed by the U.S. and other countries are impossible to predict, but have severely impacted the performance of the economies of European and other countries, including through adverse effects to global financial and energy markets, global supply chains and global growth, and consequential inflation. Investments in companies with contractual relationships with Russian counterparties, or with significant operations and/or assets in Russia could be adversely impacted by the new legal, political, and regulatory environment, whether by increased costs or the termination of business plans or operations due to sanctions. Various companies operating in Russia, or with Russian counterparties, have faced difficulties enforcing Russian debts or contractual reliefs due to the Russian court’s hostility towards European companies in response to sanctions. Certain countries have applied to become new member countries of the EU, and these candidate countries’ accessions may become more controversial to the existing EU members. Some member states may repudiate certain candidate countries joining the EU due to concerns about the possible economic, immigration and cultural implications. Certain other countries have applied to join or, in the case of Finland and Sweden, have recently joined, the North Atlantic Treaty Organization (“NATO”). Russia is understood to oppose certain expansions, or potential expansions, of NATO and the EU, and its reaction to such developments could negatively impact European economic activity. The United Kingdom withdrew from the European Union on January 31, 2020 and entered into a transition period, which ended on December 31, 2020. The longer-term economic, legal, and political framework between the United Kingdom and the EU is still developing and may lead to ongoing political and economic uncertainty in the United Kingdom, Europe, and the global market. Investments in companies with significant operations and/or assets in the United Kingdom could be adversely impacted by the new legal, political, and regulatory environment, whether by increased costs or impediments to the |
implementation of business plans. The uncertainty resulting from any further exits from the EU, or the possibility of such exits, would also be likely to cause market disruption in the EU and more broadly across the global economy, as well as introduce further legal, political, and regulatory uncertainty in Europe.
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Japan Investment Risk. A Fund’s investments in the securities of Japanese issuers mean that the Fund is susceptible to changes in Japanese economic and political conditions, the reliability of financial information available concerning these issuers, and the legal, tax and regulatory environment surrounding these issuers. The Japanese economy is heavily dependent upon international trade and may be adversely affected by global competition, trade tariffs, embargos, boycotts and other government interventions and protectionist measures, excessive regulation, changes in international trade agreements, impacts of the COVID-19 pandemic, including supply chain issues, the economic conditions of its trading partners, the performance of the global economy, and regional and global conflicts.
The domestic Japanese economy faces several concerns, including large government deficits, workforce shortages, and inflation. Japan also has an aging workforce and has experienced a significant population decline in recent years. Japan’s labor market appears to be undergoing fundamental structural changes, as a labor market traditionally accustomed to lifetime employment adjusts to meet the need for increased labor mobility, which may adversely affect Japan’s economic competitiveness. Japan’s financial system faces several concerns, including extensive cross-ownership by major corporations, a changing corporate governance structure, and large government deficits, each of which may cause a slowdown of the Japanese economy. In addition, the Japanese economic growth rate could be impacted by Bank of Japan monetary policies, rising interest rates, tax increases, budget deficits, consumer confidence and volatility in the Japanese yen. The Japanese government tax and fiscal policies may also have negative impacts on the Japanese economy. Currency fluctuations, which have been significant at times, can have a considerable impact on exports and the overall Japanese economy. The Japanese yen has fluctuated widely during recent periods and may be affected by currency volatility elsewhere in Asia, especially Southeast Asia. In addition, the yen has had a history of unpredictable and volatile movements against the U.S. dollar. Japanese intervention in the currency markets could cause the value of the yen to fluctuate sharply and unpredictably and could cause losses to investors. A weak yen is disadvantageous to U.S. shareholders investing in yen-denominated securities. A strong yen, however, could be an impediment to strong continued exports and economic recovery because it makes Japanese goods sold in other countries more expensive and reduces the value of foreign earnings repatriated to Japan. Japan is located in a part of the world that has historically been prone to natural disasters such as earthquakes, tsunamis, typhoons and volcanic eruptions, which may have a significant impact on the business operations of Japanese companies in the affected regions and Japan’s economy. Japan has one of the world’s highest population densities, with a significant percentage of its total population concentrated in the metropolitan areas of Tokyo, Osaka, and Nagoya. A natural disaster centered in or very near to one of these cities could have a particularly devastating effect on Japan’s financial markets. Japan also faces risks associated with climate change and transitioning to a lower-carbon economy. Relations with its neighbors, particularly China, North Korea, South Korea and Russia, have at times been strained due to territorial disputes, historical animosities and defense concerns. Political tensions between Japan and its trading partners could adversely affect the economy, especially the export sector, and destabilize the region as a whole. In addition, Japan’s high volume of exports has cause trade tensions with Japan’s trading partners, particularly the United States. Japan’s export industry, its most important economic sector, depends heavily on imported raw materials and fuels, including iron ore, copper, oil and many forest products. A significant portion of Japan’s trade is conducted with emerging market countries, almost all of which are located in East and Southeast Asia, and it can be affected by conditions in these other countries and currency fluctuations. Because of the concentration of Japanese exports in highly visible products such as automobiles and technology, and the large trade surpluses ensuing therefrom, Japan has historically depended on oil for most of its energy requirements. Almost all of its oil is imported, the majority from the Middle East. In the past, oil prices have had a major impact on the domestic economy, but more recently Japan has worked to reduce its dependence on oil by encouraging energy conservation and use of alternative fuels. In addition, a restructuring of industry, with emphasis shifting from basic industries to processing and assembly type industries, has contributed to the reduction of oil consumption. However, there is no guarantee that this trend will continue, and Japan remains sensitive to fluctuations in commodity prices, and a substantial rise in world oil or commodity prices could have a negative effect on its economy. |
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Money Market Funds. A Fund can invest free cash balances in registered open-end investment companies regulated as money market funds under the Investment Company Act, to provide liquidity or for defensive purposes. A Fund would invest in money market funds rather than purchasing individual short-term investments. Although a 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 money market fund’s investments, increases in interest rates and deteriorations in the credit quality of the instruments the money market fund has purchased may reduce the money market fund’s yield and can cause the price of a money market security to decrease. In addition, a money market fund is subject to the risk that the value of an investment may be eroded over time by inflation. If the liquidity of a money market fund’s portfolio deteriorates below certain levels, the money market fund may suspend redemptions (i.e., impose a redemption gate) and thereby prevent a Fund from selling its investment in the money market fund, or impose a fee of up to 2% on amounts redeemed from the money market fund.
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1 | Engage in dollar rolls or purchase or sell securities on a when-issued or forward commitment basis. The purchase or sale of when-issued securities enables an investor to hedge against anticipated changes in interest rates and prices by locking in an attractive price or yield. The price of when-issued securities is fixed at the time the commitment to purchase or sell is made, but delivery and payment for the when-issued securities takes place at a later date, normally one to two months after the date of purchase. During the period between purchase and settlement, no payment is made by the purchaser to the issuer and no interest accrues to the purchaser. Such transactions therefore involve a risk of loss if the value of the security to be purchased declines prior to the settlement date or if the value of the security to be sold increases prior to the settlement date. A sale of a when-issued security also involves the risk that the other party will be unable to settle the transaction. Dollar rolls are a type of forward commitment transaction. Purchases and sales of securities on a forward commitment basis involve a commitment to purchase or sell securities with payment and delivery to take place at some future date, normally one to two months after the date of the transaction. As with when-issued securities, these transactions involve certain risks, but they also enable an investor to hedge against anticipated changes in interest rates and prices. Forward commitment transactions are executed for existing obligations, whereas in a when-issued transaction, the obligations have not yet been issued. |
2 | Invest in other investment companies (including affiliated investment companies) to the extent permitted by the Investment Company Act, or exemptive relief granted by the SEC. |
3 | Loan securities to broker-dealers or other institutional investors. Securities loans will not be made if, as a result, the aggregate amount of all |
outstanding securities loans by a Fund exceeds 33¹/3% of its total assets (including the market value of collateral received). For purposes of complying with a Fund’s investment policies and restrictions, collateral received in connection with securities loans is deemed an asset of a Fund to the extent required by law. |
4 | Enter into repurchase agreements. A repurchase agreement is an agreement under which securities are acquired by a Fund from a securities dealer or bank subject to resale at an agreed upon price on a later date. The acquiring Fund bears a risk of loss in the event that the other party to a repurchase agreement defaults on its obligations and a Fund is delayed or prevented from exercising its rights to dispose of the collateral securities. However, the Manager or the sub-advisor, as applicable, attempts to minimize this risk by entering into repurchase agreements only with financial institutions that are deemed to be of good financial standing. |
5 | Purchase securities sold in private placement offerings made in reliance on the “private placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act, and resold to qualified institutional buyers under Rule 144A under the Securities Act. A Fund will not invest more than 15% of its net assets in Section 4(a)(2) securities and illiquid securities unless the Manager or the sub-advisor, as applicable, determines that any Section 4(a)(2) securities held by such Fund in excess of this level are liquid. |
1 | Purchase or sell real estate or real estate limited partnership interests, provided, however, that the Fund may dispose of real estate acquired as a result of the ownership of securities or other instruments and invest in securities secured by real estate or interests therein or issued by companies which invest in real estate or interests therein when consistent with the other policies and limitations described in the Prospectus. |
2 | Invest in physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the Fund from purchasing or selling foreign currency, options, futures contracts, options on futures contracts, forward contracts, swaps, caps, floors, collars, securities on a forward-commitment or delayed-delivery basis, and other similar financial instruments or commodity pools or other entities that purchase and sell commodities and commodity contracts). |
3 | Engage in the business of underwriting securities issued by others, except to the extent that, in connection with the disposition of securities, the Fund may be deemed an underwriter under federal securities law. |
4 | Lend any security or make any other loan except: (i) as otherwise permitted under the Investment Company Act, (ii) pursuant to a rule, order or interpretation issued by the SEC or its staff, (iii) through the purchase of a portion of an issue of debt securities in accordance with the Fund’s investment objective, policies and limitations, or (iv) by engaging in repurchase agreements. |
5 | Issue any senior security except as otherwise permitted (i) under the Investment Company Act or (ii) pursuant to a rule, order or interpretation issued by the SEC or its staff. |
6 | Borrow money, except as otherwise permitted under the Investment Company Act or pursuant to a rule, order or interpretation issued by the SEC or its staff, including (i) as a temporary measure, (ii) by entering into reverse repurchase agreements, and (iii) by lending portfolio securities as collateral. For purposes of this investment limitation, the purchase or sale of options, futures contracts, options on futures contracts, forward contracts, swaps, caps, floors, collars and other similar financial instruments and margin deposits, security interests, liens and collateral arrangements with respect to such instruments shall not constitute borrowing. |
7 | Invest more than 25% of its total assets in the securities of companies primarily engaged in any particular industry or group of industries provided that this limitation does not apply to: (i) obligations issued or guaranteed by the U.S. Government, its agencies and instrumentalities; and (ii) tax-exempt securities issued by municipalities and their agencies and authorities. |
1 | Invest more than 15% of its net assets in illiquid securities, including time deposits and repurchase agreements that mature in more than seven days; or |
2 | Purchase securities on margin, except that (1) a Fund may obtain such short term credits necessary for the clearance of transactions, and (2) a Fund may make margin payments in connection with foreign currency, futures contracts, options, forward contracts, swaps, caps, floors, collars, securities purchased or sold on a forward-commitment or delayed-delivery basis or other financial instruments. |
1 | a complete list of holdings for each Fund on an annual and semi-annual basis in the reports to shareholders within sixty days of the end of each fiscal semi-annual period and in publicly available filings of Form N-CSR with the SEC within ten days thereafter (available on the SEC’s website at www.sec.gov); |
2 | a complete list of holdings for each Fund as of the end of each fiscal quarter in publicly available filings of Form N-PORT with the SEC within sixty days of the end of the fiscal quarter (available on the SEC’s website at www.sec.gov); |
3 | a complete list of holdings for each Fund as of the end of each calendar quarter on the Funds’ website (www.americanbeaconfunds.com) approximately sixty days after the end of the calendar quarter; and |
4 | ten largest holdings for each Fund as of the end of each calendar quarter on the Funds’ website (www.americanbeaconfunds.com) and in sales materials approximately fifteen days after the end of the calendar quarter. |
Service Provider
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Service
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Holdings Access
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Manager
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Investment management and administrator
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Complete list on intraday basis with no lag
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Sub-Advisor
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Investment management
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Holdings under sub-advisor’s management on intraday basis with no lag
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State Street Bank and Trust Co. (“State Street”) and its designated foreign sub-custodians
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Securities lending agent for Funds that participate in securities lending, Funds’ custodian and foreign custody manager, sub-administrator, fund administration service provider, and foreign sub-custodian
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Complete list on intraday basis with no lag
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PricewaterhouseCoopers LLP
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Funds’ independent registered public accounting firm
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Complete list on annual basis with no lag
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ACA Compliance Group
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Sub-Advisor third-party compliance testing
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Complete list upon request with lag
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Bloomberg, L.P.
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Performance and portfolio analytics reporting
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Complete list on daily basis with no lag
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ENSO LP acting by its general partner, ENSO FINANCIAL MANAGEMENT LLP
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Manage exposure across brokers, monitor initial margin, variation margin, and total equity of Sub-advisor.
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Complete list on daily basis with no lag
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FactSet Research Systems, Inc.
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Performance and portfolio analytics reporting for the Manager
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Complete list on daily basis with no lag
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KPMG International
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Service provider to State Street
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Complete list on annual basis with lag
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1 | Recipients of portfolio holdings information must agree in writing to keep the information confidential until it has been posted to the Funds’ website and not to trade based on the information; |
2 | Holdings may only be disclosed as of a month-end date; |
3 | No compensation may be paid to the Funds, the Manager or any other party in connection with the disclosure of information about portfolio securities; and |
4 | A member of the Manager’s Compliance staff must approve requests for nonpublic holdings information. |
Name and Year of Birth*
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Position and Length of Time Served on the American Beacon Funds and American Beacon Select Funds
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Position and Length of Time Served on the American Beacon Institutional Funds Trust
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Principal Occupation(s) and Directorships During Past 5 Years
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INTERESTED TRUSTEE
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Eugene J. Duffy
(1954)** |
Trustee since 2008
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Trustee since 2017
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Managing Director, Global Investment Management Distribution, Mesirow Financial Administrative Corporation (2016-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
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NON-INTERESTED TRUSTEES
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Gilbert G. Alvarado
(1969) |
Trustee since 2015
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Trustee since 2017
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Chief Financial Officer, The Conrad Prebys Foundation (2022-Present); President, SJVIIF, LLC, Impact Investment Fund (2018-2022); Executive Vice President/COO, Sierra Health Foundation (health conversion private foundation) (2022), Senior Vice President/CFO, Sierra Health Foundation (health conversion private foundation) (2006-2022); Executive Vice President/COO, Sierra Health Foundation: Center for Health Program Management (California public benefit corporation) (2022), Senior Vice President/CFO, Sierra Health Foundation: Center for Health Program Management (California public benefit corporation) (2012-2022); Director, Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
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Joseph B. Armes
(1962) |
Trustee since 2015
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Trustee since 2017
|
Director, Switchback Energy Acquisition (2019-2021); Chairman & CEO, CSW Industrials f/k/a Capital Southwest Corporation (investment company) (2015-Present); President & CEO, JBA Investment Partners (family investment vehicle) (2010-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
|
Gerard J. Arpey
(1958) |
Trustee since 2012
|
Trustee since 2017
|
Partner, Emerald Creek Group (private equity firm) (2011-Present); Director, S.C. Johnson & Son, Inc. (privately held company) (2008-Present); Director, The Home Depot, Inc. (NYSE: HD) (2015-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
|
Brenda A. Cline
(1960) |
Chair since 2019
Vice Chair 2018
Trustee since 2004
|
Chair since 2019
Vice Chair 2018
Trustee since 2017
|
Chief Financial Officer, Treasurer and Secretary, Kimbell Art Foundation (1993-Present); Director, Tyler Technologies, Inc. (public sector software solutions company) (2014-Present); Director, Range Resources Corporation (oil and natural gas company) (2015-Present); Trustee, Cushing Closed-End (2) and Open-End Funds (3) (2017-2021); Chair, American Beacon Sound Point Enhanced Income Fund (2019-2021), Vice Chair (2018), Trustee (2018-2021); Chair, American Beacon Apollo Total Return Fund (2019-2021), Vice Chair (2018), Trustee (2018-2021).
|
Claudia A. Holz
(1957) |
Trustee since 2018
|
Trustee since 2018
|
Independent Director, Blue Owl Capital Inc. (2021-Present); Partner, Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
|
Douglas A. Lindgren
(1961) |
Trustee since 2018
|
Trustee since 2018
|
Director, JLL Income Property Trust (2022-Present); Consultant, Carne Financial Services (2017-2019); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
|
Barbara J. McKenna
(1963) |
Trustee since 2012
|
Trustee since 2017
|
President and Managing Principal, Longfellow Investment Management Company (2005-Present, President since 2009); Member, External Diversity Council of the Federal Reserve Bank of Boston (2021-2023); Board Advisor, United States Tennis Association (2021-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021).
|
* | The Board has adopted a retirement policy that requires Trustees to retire no later than the last day of the calendar year in which they reach the age of 75. |
** | Mr. Duffy is deemed to be an “interested person” of the Trust, as defined by the Investment Company Act of 1940, as amended, by virtue of his position with Mesirow Financial, Inc., a broker-dealer. |
INTERESTED TRUSTEE
|
|
Duffy
|
|
American Beacon AHL Managed Futures Strategy Fund
|
None
|
American Beacon AHL Multi-Alternatives Fund
|
None
|
American Beacon AHL TargetRisk Fund
|
None
|
Aggregate Dollar Range of Equity Securities in all Trusts (27 Funds as of December 31, 2023)
|
$10,001 - $50,000
|
NON-INTERESTED TRUSTEES
|
|||||||
Alvarado
|
Armes
|
Arpey
|
Cline
|
Holz
|
Lindgren
|
McKenna
|
|
American Beacon AHL Managed Futures Strategy Fund
|
$1 - 10,000
|
None
|
None
|
None
|
None
|
None
|
$50,001 - $100,000
|
American Beacon AHL Multi-Alternatives Fund
|
None
|
None
|
None
|
None
|
None
|
None
|
None
|
American Beacon AHL TargetRisk Fund
|
$10,001 - $50,000
|
Over $100,000
|
None
|
None
|
None
|
Over $100,000
|
None
|
Aggregate Dollar Range of Equity Securities in all Trusts (27 Funds as of December 31, 2023)
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
Over $100,000
|
The following table shows total compensation (excluding reimbursements) paid by the Trusts to each Trustee for the fiscal year ended December 31, 2023.
|
||
Name of Trustee
|
Aggregate Compensation from the Trust
|
Total Compensation from the Trusts
|
INTERESTED TRUSTEE
|
||
Eugene J. Duffy
|
$188,509
|
$200,000
|
NON-INTERESTED TRUSTEES
|
||
Gilbert G. Alvarado
|
$203,589
|
$216,000
|
Joseph B. Armes
|
$201,704
|
$214,000
|
Gerard J. Arpey
|
$199,819
|
$212,000
|
Brenda A. Cline1
|
$250,717
|
$266,000
|
Claudia A. Holz
|
$223,383
|
$237,000
|
Douglas A. Lindgren
|
$223,383
|
$237,000
|
Barbara J. McKenna
|
$203,589
|
$216,000
|
1 | Upon her retirement from the Board, Ms. Cline is eligible for flight benefits afforded to Eligible Trustees who served on the Boards prior to September 12, 2008 as described below. |
Name and Year of Birth
|
Position and Length of Time Served on the American Beacon Funds and American Beacon Select Funds
|
Position and Length of Time Served on the American Beacon Institutional Funds Trust
|
Principal Occupation(s) and Directorships During Past 5 Years
|
OFFICERS
|
|||
Rebecca L. Harris
(1966) |
President
Since May 2024 Vice President
2022-2024 |
President
Since May 2024 Vice President
2022-2024 |
President (2024-Present); Senior Vice President (2021-2024), Vice President (2011-2021), American Beacon Advisors, Inc.; President (2021-2024), Senior Vice President (2021-2024), Vice President (2017-2021), Resolute Investment Managers, Inc.; President (2024-Present); Senior Vice President (2021-2024), Vice President (2017-2021), Resolute Investment Services, Inc.; Vice President, Alpha Quant Advisors, LLC (2016-2020); Vice President (2018-2022), Director (2022) Continuous Capital, LLC; Director (2022-Present) National Investment Services of America, LLC; Director (2022-Present) RSW Investments Holdings LLC; Director (2022-Present) Shapiro Capital Management LLC; Director (2022-Present) SSI Investment Management LLC; Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021); Assistant Secretary, American Beacon Funds (2010 – 2022); Assistant Secretary, American Beacon Select Funds (2010 – 2022); Assistant Secretary, American Beacon Institutional Funds Trust (2017 – 2022).
|
Rosemary K. Behan
(1959) |
Vice President, Secretary and Chief Legal Officer
since 2006 |
Vice President, Secretary and Chief Legal Officer
since 2017 |
Senior Vice President (2021-Present), Vice President (2006-2021), Secretary and General Counsel (2006-Present), American Beacon Advisors, Inc.; Secretary, Resolute Investment Holdings, LLC (2015-Present); Secretary, Resolute Topco, Inc. (2015-Present); Secretary, Resolute Acquisition, Inc. (2015-Present); Senior Vice President (2021-Present), Vice President (2015-2021), Secretary and General Counsel (2015-Present), Resolute Investment Managers, Inc.; Secretary, Resolute Investment Distributors, Inc. (2017-Present); Senior Vice President (2021-Present), Vice President (2017-2021), Secretary and General Counsel (2017-Present), Resolute Investment Services, Inc.; Secretary, American Private Equity Management, LLC (2008-2024); Secretary and General Counsel, Alpha Quant Advisors, LLC (2016-2020); Vice President and Secretary, Continuous Capital, LLC (2018-2022); Secretary, Green Harvest Asset Management, LLC (2019-2021); Secretary, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2014-Present); Secretary, American Beacon Cayman TargetRisk Company, Ltd (2018-Present); Secretary, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Secretary, American Beacon Cayman Trend Company, Ltd. (2023-Present); Vice President, Secretary, and Chief Legal Officer, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, Secretary, and Chief Legal Officer, American Beacon Apollo Total Return Fund (2018-2021).
|
Paul B. Cavazos
(1969) |
Vice President
since 2016 |
Vice President
since 2017 |
Chief Investment Officer and Senior Vice President, American Beacon Advisors, Inc. (2016-Present); Vice President, American Private Equity Management, L.L.C. (2017-2024); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
|
Name and Year of Birth
|
Position and Length of Time Served on the American Beacon Funds and American Beacon Select Funds
|
Position and Length of Time Served on the American Beacon Institutional Funds Trust
|
Principal Occupation(s) and Directorships During Past 5 Years
|
Erica B. Duncan
(1970) |
Vice President
since 2011 |
Vice President
since 2017 |
Vice President, American Beacon Advisors, Inc. (2011-Present); Vice President, Resolute Investment Managers, Inc. (2018-Present); Vice President, Resolute Investment Services, Inc. (2018-Present); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
|
Terri L. McKinney
(1963) |
Vice President
since 2010 |
Vice President
since 2017 |
Senior Vice President, (2021-Present) Vice President, (2009-2021), American Beacon Advisors, Inc.; Senior Vice President (2021-Present), Vice President (2017-2021), Resolute Investment Managers, Inc.; Senior Vice President (2021-Present), Vice President (2018-2021), Resolute Investment Services, Inc.; Vice President, Alpha Quant Advisors, LLC (2016-2020); Vice President, Continuous Capital, LLC (2018-2022); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
|
Samuel J. Silver
(1963) |
Vice President
since 2011 |
Vice President
since 2017 |
Vice President (2011-Present), Chief Fixed Income Officer (2016-Present), American Beacon Advisors, Inc.; Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
|
Melinda G. Heika
(1961) |
Vice President
since 2021 |
Vice President
since 2021 |
Senior Vice President (2021-Present), Treasurer and CFO (2010-Present), American Beacon Advisors, Inc.; Treasurer, Resolute Topco, Inc. (2015-Present); Treasurer, Resolute Investment Holdings, LLC (2015-Present); Treasurer, Resolute Acquisition, Inc. (2015-Present); Senior Vice President (2021-Present), Treasurer and CFO (2017-Present), Resolute Investment Managers, Inc.; Senior Vice President (2021-Present), Treasurer and CFO (2017-Present), Resolute Investment Services, Inc.; Treasurer, American Private Equity Management, L.L.C. (2012-2024); Treasurer and CFO, Alpha Quant Advisors, LLC (2016-2020); Treasurer, Continuous Capital, LLC (2018-2022); Director (2014-Present), Vice President (2022-Present) and Treasurer (2014-2022), American Beacon Cayman Managed Futures Strategy Fund, Ltd.; Director and Vice President (2022-Present), and Treasurer (2018-2022), American Beacon Cayman TargetRisk Company, Ltd.; Director and Vice President, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Director and Vice President, American Beacon Cayman Trend Company, Ltd. (2023-Present); Principal Accounting Officer and Treasurer, American Beacon Funds (2010-2021); Principal Accounting Officer and Treasurer, American Beacon Select Funds (2010-2021); Principal Accounting Officer and Treasurer, American Beacon Institutional Funds Trust (2017-2021); Principal Accounting Officer and Treasurer (2018-2021), Vice President (2021), American Beacon Sound Point Enhanced Income Fund; Principal Accounting Officer and Treasurer (2018-2021), Vice President (2021), American Beacon Apollo Total Return Fund.
|
Gregory Stumm
(1981) |
Vice President
since 2022 |
Vice President
since 2022 |
Senior Vice President, American Beacon Advisors, Inc. (2022-Present); Senior Vice President, Resolute Investment Managers, Inc. (2022-Present); Senior Vice President, Resolute Investment Services, Inc. (2022-Present); President (2024-Present), Director and Senior Vice President (2022-2024), Resolute Investment Distributors, Inc.
|
Sonia L. Bates
(1956) |
Principal Accounting Officer and Treasurer
since 2021 |
Principal Accounting Officer and Treasurer
since 2021 |
Assistant Treasurer, American Beacon Advisors, Inc. (2023-Present); Vice President, Fund and Tax Reporting (2023-Present), Director, Fund and Tax Reporting (2011-2023), Resolute Investment Services, Inc; Assistant Treasurer, American Private Equity Management, L.L.C. (2012-2024); Treasurer, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2022-Present); Treasurer (2022-Present) and Assistant Treasurer (2018-2022), American Beacon Cayman TargetRisk Company, Ltd.; Treasurer, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Treasurer, American Beacon Cayman Trend Company, Ltd. (2023-Present); Assistant Treasurer (2018-2021), Principal Accounting Officer and Treasurer (2021), American Beacon Sound Point Enhanced Income Fund; Assistant Treasurer (2019-2021), Principal Accounting Officer and Treasurer (2021), American Beacon Apollo Total Return Fund; Assistant Treasurer, American Beacon Funds (2011-2021); Assistant Treasurer, American Beacon Select Funds (2011-2021); Assistant Treasurer, American Beacon Institutional Funds Trust (2017-2021).
|
Name and Year of Birth
|
Position and Length of Time Served on the American Beacon Funds and American Beacon Select Funds
|
Position and Length of Time Served on the American Beacon Institutional Funds Trust
|
Principal Occupation(s) and Directorships During Past 5 Years
|
Christina E. Sears
(1971) |
Chief Compliance Officer
since 2004 Assistant Secretary since 1999 |
Chief Compliance Officer and Assistant Secretary
since 2017 |
Chief Compliance Officer (2004-Present), Vice President (2019-Present), American Beacon Advisors, Inc.; Vice President, Resolute Investment Managers, Inc. (2017-Present); Vice President, Resolute Investment Distributors, Inc. (2017-Present); Vice President, Resolute Investment Services, Inc. (2019-Present); Chief Compliance Officer, American Private Equity Management, LLC (2012-2024); Chief Compliance Officer, Green Harvest Asset Management, LLC (2019-2021); Chief Compliance Officer, RSW Investments Holdings, LLC (2019-Present); Chief Compliance Officer (2016-2019), Vice President (2016-2020), Alpha Quant Advisors, LLC; Chief Compliance Officer (2018-2019), Vice President (2018-2022), Continuous Capital, LLC.; Chief Compliance Officer and Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Chief Compliance Officer and Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021).
|
Shelley L. Dyson
(1969) |
Assistant Treasurer
since 2021 |
Assistant Treasurer
since 2021 |
Fund Tax Director (2024-Present), Fund Tax Manager (2020-2024), Manager, Tax (2014-2020), Resolute Investment Services, Inc.; Assistant Treasurer, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2022-Present); Assistant Treasurer, American Beacon Cayman TargetRisk Company, Ltd (2022-Present); Assistant Treasurer, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Assistant Treasurer, American Beacon Cayman Trend Company, Ltd. (2023-Present); Assistant Treasurer, American Beacon Sound Point Enhanced Income Fund (2021); Assistant Treasurer, American Beacon Apollo Total Return Fund (2021).
|
Shelley D. Abrahams
(1974) |
Assistant Secretary
since 2008 |
Assistant Secretary
since 2017 |
Corporate Governance Manager (2023-Present), Senior Corporate Governance & Regulatory Specialist (2020-2023), Corporate Governance & Regulatory Specialist (2017-2020), Resolute Investment Services, Inc.; Assistant Secretary, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2022-Present); Assistant Secretary, American Beacon Cayman TargetRisk Company, Ltd (2022-Present); Assistant Secretary, American Beacon Cayman Multi-Alternatives Company, Ltd. (2023-Present); Assistant Secretary, American Beacon Cayman Trend Company, Ltd. (2023-Present); Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021).
|
Teresa A. Oxford
(1958) |
Assistant Secretary
since 2015 |
Assistant Secretary
since 2017 |
Deputy General Counsel (2024-Present), Assistant Secretary (2015-Present), Associate General Counsel (2015-2024), American Beacon Advisors, Inc.; Assistant Secretary (2018-2021) (2024-Present), Resolute Investment Distributors, Inc.; Deputy General Counsel (2024-Present), Assistant Secretary (2017-Present), Associate General Counsel (2017-2024), Resolute Investment Managers, Inc.; Deputy General Counsel (2024-Present), Assistant Secretary (2018-Present), Associate General Counsel (2018-2024), Resolute Investment Services, Inc.; Assistant Secretary (2016-2020), Alpha Quant Advisors, LLC; Assistant Secretary (2020-2022), Continuous Capital, LLC.; Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021).
|
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R5 CLASS
|
Investor CLASS
|
CHARLES SCHWAB & CO INC*
|
12.64%
|
64.73%
|
||||
SPECIAL CUST A/C
|
||||||
EXCLUSIVE BENEFIT OF CUSTOMERS
|
||||||
ATTN MUTUAL FUNDS
|
||||||
211 MAIN ST
|
||||||
SAN FRANCISCO CA 94105-1901
|
||||||
J.P. MORGAN SECURITIES LLC OMNIBUS*
|
7.48%
|
51.58%
|
||||
ACCT FOR THE EXCLUSIVE BEN OF CUST
|
||||||
4 CHASE METROTECH CTR FL 3RD
|
||||||
BROOKLYN NY 11245-0003
|
||||||
LPL FINANCIAL*
|
6.47%
|
|||||
4707 EXECUTIVE DR
|
||||||
SAN DIEGO CA 92121-3091
|
||||||
MERRILL LYNCH PIERCE FENNER &*
|
5.03%
|
|||||
SMITH INC (HOUSE ACCOUNT)
|
||||||
THE AMERICAN BEACON FUNDS
|
||||||
4800 DEER LAKE DR EAST
|
||||||
JACKSONVILLE FL 32246-6484
|
||||||
MORGAN STANLEY SMITH BARNEY LLC*
|
28.37%
|
11.76%
|
35.53%
|
38.41%
|
0.05%
|
0.45%
|
FOR THE EXCLUSIVE BENE OF ITS CUST
|
||||||
1 NEW YORK PLZ FL 12
|
||||||
NEW YORK NY 10004-1965
|
||||||
NATIONAL FINANCIAL SERVICES LLC*
|
75.77%
|
17.19%
|
19.82%
|
|||
FOR EXCLUSIVE BENEFIT OF OUR
|
||||||
CUSTOMERS
|
||||||
ATTN MUTUAL FUNDS DEPT 4TH FLOOR
|
||||||
499 WASHINGTON BLVD
|
||||||
JERSEY CITY NJ 07310-1995
|
||||||
PERSHING LLC*
|
27.31%
|
5.84%
|
||||
1 PERSHING PLZ
|
||||||
JERSEY CITY NJ 07399-0001
|
||||||
WELLS FARGO CLEARING SERVICES LLC*
|
9.52%
|
9.13%
|
||||
SPECIAL CUSTODY ACCT FOR THE
|
||||||
EXCLUSIVE BENEFIT OF CUSTOMERS
|
||||||
2801 MARKET ST
|
||||||
SAINT LOUIS MO 63103-2523
|
||||||
SAXON & CO.*
|
13.36%
|
|||||
PO BOX 94597
|
||||||
CLEVELAND OH 44101-4597
|
||||||
SEI PRIVATE TRUST COMPANY*
|
16.11%
|
|||||
C/O REGIONS
|
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R5 CLASS
|
Investor CLASS
|
1 FREEDOM VALLEY DRIVE
|
||||||
OAKS PA 19456-9989
|
* | Denotes record owner of Fund shares only |
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R6 CLASS
|
NATIONAL FINANCIAL SERVICES LLC*
|
98.26%
|
||||
FOR EXCLUSIVE BENEFIT OF
|
|||||
OUR CUSTOMERS
|
|||||
ATTN MUTUAL FUNDS DEPT 4TH FLOOR
|
|||||
499 WASHINGTON BLVD
|
|||||
JERSEY CITY NJ 07310-1995
|
|||||
AMERICAN BEACON ADVISORS
|
100.00%
|
100.00%
|
19.26%
|
||
220 LAS COLINAS BLVD E STE 1200
|
|||||
IRVING TX 75039-5500
|
|||||
MAN INVESTMENTS FINANCE INC
|
62.05%
|
80.74%
|
|||
452 5TH AVE FL 26
|
|||||
NEW YORK NY 10018-2782
|
* | Denotes record owner of Fund shares only |
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R5 CLASS
|
Investor CLASS
|
CHARLES SCHWAB & CO INC*
|
32.48%
|
16.50%
|
35.76%
|
7.52%
|
56.21%
|
|
SPECIAL CUST A/C
|
||||||
EXCLUSIVE BENEFIT OF CUSTOMERS
|
||||||
ATTN MUTUAL FUNDS
|
||||||
211 MAIN ST
|
||||||
SAN FRANCISCO CA 94105-1901
|
||||||
LPL FINANCIAL*
|
11.04%
|
16.57%
|
7.11%
|
|||
4707 EXECUTIVE DR
|
||||||
SAN DIEGO CA 92121-3091
|
||||||
MORGAN STANLEY SMITH BARNEY LLC*
|
52.08%
|
52.00%
|
25.38%
|
|||
FOR THE EXCLUSIVE BENE OF ITS CUST
|
||||||
1 NEW YORK PLZ FL 12
|
||||||
NEW YORK NY 10004-1965
|
||||||
NATIONAL FINANCIAL SERVICES LLC*
|
7.39%
|
6.89%
|
57.11%
|
28.30%
|
||
FOR EXCLUSIVE BENEFIT OF OUR
|
||||||
CUSTOMERS
|
||||||
ATTN MUTUAL FUNDS DEPT 4TH FLOOR
|
||||||
499 WASHINGTON BLVD
|
||||||
JERSEY CITY NJ 07310-1995
|
||||||
PERSHING LLC*
|
16.55%
|
14.54%
|
5.81%
|
8.89%
|
||
1 PERSHING PLZ
|
||||||
JERSEY CITY NJ 07399-0001
|
||||||
RAYMOND JAMES*
|
11.99%
|
|||||
OMNIBUS FOR MUTUAL FUNDS
|
||||||
ATTN COURTNEY WALLER
|
Shareholder Address
|
Fund Percentage (listed if over 25%)
|
A CLASS
|
C CLASS
|
Y CLASS
|
R5 CLASS
|
Investor CLASS
|
880 CARILLON PKWY
|
||||||
ST PETERSBURG FL 33716-1100
|
||||||
GENERAL MOTORS SAVINGS PLANS MASTER
|
6.46%
|
|||||
TRUST
|
||||||
C/O STATE STREET BANK AND TRUST CO
|
||||||
1776 HERITAGE DR
|
||||||
QUINCY MA 02171-2119
|
||||||
MATRIX TRUST COMPANY CUST FBO
|
5.92%
|
|||||
HOUSING AUTHORITY OF THE CITY OF SA
|
||||||
PO BOX 52129
|
||||||
PHOENIX AZ 85072-2129
|
||||||
RELIANCE TRUST CO FBO
|
12.41%
|
|||||
FIDUCIARY TRUST C/R
|
||||||
PO BOX 570788
|
||||||
ATLANTA GA 30357-3114
|
||||||
SEI PRIVATE TRUST COMPANY
|
5.07%
|
|||||
C/O BANKERS SWP
|
||||||
1 FREEDOM VALLEY DRIVE
|
||||||
OAKS PA 19456-9989
|
* | Denotes record owner of Fund shares only |
AHL Partners LLP (“AHL”)
|
||
Controlling Person/Entity
|
Basis of Control
|
Nature of Controlling Person/Entity’s Business
|
Man Investments Limited
|
Managing Member holding over 50.1% of the voting rights
|
Investment management firm founded in 1987
|
Man Group plc
|
Ultimate Parent Company
|
Investment management firm
|
Controlling Person/Entity
|
Basis of Control
|
Nature of Controlling Person/Entity’s Business
|
Resolute Topco, Inc.
|
Parent Company
|
Holding Company – Founded in 2015
|
First $5 billion
|
0.35%
|
Next $5 billion
|
0.325%
|
Next $10 billion
|
0.30%
|
Over $20 billion
|
0.275%
|
■
|
complying with reporting requirements;
|
■
|
corresponding with shareholders;
|
■
|
maintaining internal bookkeeping, accounting and auditing services and records;
|
■
|
supervising the provision of services to the Trust by third parties; and
|
■
|
administering the Funds’ interfund lending facility and lines of credit, if applicable.
|
Management Fees Paid to American Beacon Advisors, Inc. (Gross)
|
|||
2021
|
2022
|
2023
|
|
American Beacon AHL Managed Futures Strategy Fund
|
$5,924,218
|
$11,756,849
|
$12,584,155
|
American Beacon AHL Multi-Alternatives Fund
|
N/A
|
N/A
|
$38,097
|
American Beacon AHL TargetRisk Fund
|
$3,098,005
|
$2,537,208
|
$1,265,963
|
Sub-Advisor Fees (Gross)
|
|||
2021
|
2022
|
2023
|
|
American Beacon AHL Managed Futures Strategy Fund
|
$16,965,092
|
33,687,648
|
$35,940,884
|
1.00%
|
1.00%
|
1.00%
|
|
American Beacon AHL Multi-Alternatives Fund
|
N/A
|
N/A
|
$84,358
|
N/A
|
N/A
|
0.78%
|
|
American Beacon AHL TargetRisk Fund
|
$4,680,526
|
$3,869,157
|
$2,008,323
|
0.55%
|
0.53%
|
0.55%
|
Management Fees (Waived)/Recouped
|
|||
2021
|
2022
|
2023
|
|
American Beacon AHL Managed Futures Strategy Fund
|
$(4,376)
|
$(12,575)
|
$0
|
American Beacon AHL Multi-Alternatives Fund
|
N/A
|
N/A
|
$(38,097)
|
American Beacon AHL TargetRisk Fund
|
$0
|
$0
|
$0
|
Distribution Fees
|
|
Fund
|
A Class
|
American Beacon AHL Managed Futures Strategy Fund
|
$418,605
|
American Beacon AHL Multi-Alternatives Fund
|
$94*
|
American Beacon AHL TargetRisk Fund
|
$8,279
|
* | The American Beacon AHL Multi-Alternatives Fund commenced operations on August 17, 2023. Therefore, fees are reported for the period August 17, 2023 through December 31, 2023. |
Distribution Fees
|
|
Fund
|
C Class
|
American Beacon AHL Managed Futures Strategy Fund
|
$347,398
|
American Beacon AHL Multi-Alternatives Fund
|
$375*
|
American Beacon AHL TargetRisk Fund
|
$100,098
|
* | The American Beacon AHL Multi-Alternatives Fund commenced operations on August 17, 2023. Therefore, fees are reported for the period August 17, 2023 through December 31, 2023. |
Service Fees
|
|||
A Class
|
2021
|
2022
|
2023
|
American Beacon AHL Managed Futures Strategy Fund
|
$6,512
|
$58,746
|
$264,623
|
American Beacon AHL Multi-Alternatives Fund
|
N/A
|
N/A
|
$64*
|
American Beacon AHL TargetRisk Fund
|
$3,151
|
$2,723
|
$8,265
|
C Class
|
2021
|
2022
|
2023
|
American Beacon AHL Managed Futures Strategy Fund
|
$8,484
|
$15,802
|
$18,915
|
American Beacon AHL Multi-Alternatives Fund
|
N/A
|
N/A
|
$63*
|
American Beacon AHL TargetRisk Fund
|
$13,317
|
$12,855
|
$7,262
|
Investor Class
|
2021
|
2022
|
2023
|
American Beacon AHL Managed Futures Strategy Fund
|
$137,105
|
$212,113
|
$204,138
|
American Beacon AHL TargetRisk Fund
|
$61,612
|
$51,928
|
$26,663
|
* | The American Beacon AHL Multi-Alternatives Fund commenced operations on August 17, 2023. Therefore, fees are reported for the period August 17, 2023 through December 31, 2023. |
American Beacon Fund
|
Sales Charge Revenue
|
Deferred Sales Charge Revenue
|
|||
Fiscal Year
|
Amount Paid to Distributor
|
Amount Retained by Distributor
|
Amount Paid to Distributor
|
Amount Retained by Distributor
|
|
American Beacon AHL Managed Futures Strategy Fund
|
2023
|
$144,154
|
$14,198
|
$4,337
|
$0
|
2022
|
$372,732
|
$32,508
|
$4,844
|
$0
|
|
2021
|
$115,035
|
$8,324
|
$385
|
$0
|
|
American Beacon AHL Multi-Alternatives Fund*
|
2023
|
$0
|
$0
|
$0
|
$0
|
2022
|
N/A
|
N/A
|
N/A
|
N/A
|
|
2021
|
N/A
|
N/A
|
N/A
|
N/A
|
|
American Beacon AHL TargetRisk Fund
|
2023
|
$4,606
|
$612
|
$50
|
$0
|
2022
|
$27,628
|
$68
|
$1,215
|
$0
|
|
2021
|
$65,138
|
$2,490
|
$5,289
|
$0
|
* | The American Beacon AHL Multi-Alternatives Fund commenced operations on August 17, 2023. Therefore, fees are reported for the period August 17, 2023 through December 31, 2023. |
Number of Other Accounts Managed
and Assets by Account Type |
Number of Accounts and Assets for Which
Advisory Fee is Performance-Based |
|||||
Name of Investment Advisor and Portfolio Manager
|
Registered Investment Companies
|
Other Pooled Investment Vehicles
|
Other Accounts
|
Registered Investment Companies
|
Other Pooled Investment Vehicles
|
Other Accounts
|
Russell Korgaonkar
|
3 ($3.5 bil)
|
30 ($14.3 bil)
|
19 ($15.4 bil)
|
None
|
20 ($7.6 bil)
|
17 ($15.2 bil)
|
Otto van Hemert
|
3 ($3.5 bil)
|
10 ($1.6 bil)
|
6 ($2.2 bil)
|
None
|
3 ($1.0 bil)
|
3 ($0.5 bil)
|
Name of Investment Advisor and Portfolio Managers
|
American Beacon AHL Managed Futures Strategy Fund
|
American Beacon AHL Multi-Alternatives Fund
|
American Beacon AHL TargetRisk Fund
|
AHL Partners LLP
|
|||
Russell Korgaonkar
|
None
|
None
|
None
|
Otto van Hemert
|
None
|
None
|
None
|
2021
|
2022
|
2023
|
|
American Beacon AHL Managed Futures Strategy Fund
|
$1,061,420
|
$1,560,167
|
$2,443,240
|
American Beacon AHL Multi-Alternatives Fund*
|
N/A
|
N/A
|
$5,091
|
American Beacon AHL TargetRisk Fund
|
$194,818
|
$96,546
|
$65,852
|
* | The American Beacon AHL Multi-Alternatives Fund commenced operations on August 17, 2023. Therefore, fees are reported for the period August 17, 2023 through December 31, 2023. |
■
|
individual-type employee benefit plans, such as an IRA, individual 403(b) plan or single-participant Keogh-type plan;
|
■
|
business accounts solely controlled by you or your immediate family (for example, you own the entire business);
|
■
|
trust accounts established by you or your immediate family (for trusts with only one primary beneficiary, upon the trustor’s death the trust account may be aggregated with such beneficiary’s own accounts; for trusts with multiple primary beneficiaries, upon the trustor’s death the trustees of the trust may instruct the Funds’ transfer agent to establish separate trust accounts for each primary beneficiary; each primary beneficiary’s separate trust account may then be aggregated with such beneficiary’s own accounts);
|
■
|
endowments or foundations established and controlled by you or your immediate family; or
|
■
|
529 accounts, which will be aggregated at the account owner level (Class 529-E accounts may only be aggregated with an eligible employer plan).
|
■
|
for a single trust estate or fiduciary account, including employee benefit plans other than the individual-type employee benefit plans described above;
|
■
|
made for two or more employee benefit plans of a single employer or of affiliated employers as defined in the Investment Company Act, excluding the individual-type employee benefit plans described above;
|
■
|
for nonprofit, charitable or educational organizations, or any endowments or foundations established and controlled by such organizations, or any employer-sponsored retirement plans established for the benefit of the employees of such organizations, their endowments, or their foundations; or
|
■
|
for individually established participant accounts of a 403(b) plan that is treated similarly to an employer-sponsored plan for sales charge purposes (see “Purchases by certain 403(b) plans” under “Sales Charges” above), or made for two or more such 403(b) plans that are treated similarly to employer-sponsored plans for sales charge purposes, in each case of a single employer or affiliated employers as defined in the Investment Company Act. Purchases made for nominee or street name accounts (securities held in the name of a broker-dealer or another nominee such as a bank trust department instead of the customer) may not be aggregated with those made for other accounts and may not be aggregated with other nominee or street name accounts unless otherwise qualified as described above.
|
1 | current or retired trustees, and officers of the American Beacon Funds family, current or retired employees and directors of the Manager and its affiliated companies, certain family members and employees of the above persons, and trusts or plans primarily for such persons; |
2 | currently registered representatives and assistants directly employed by such representatives, retired registered representatives with respect to accounts established while active, or full-time employees (collectively, “Eligible Persons”) (and their spouses, and children, including children in step and adoptive relationships, sons-in-law and daughters-in-law, if the Eligible Persons or the spouses or children of the Eligible Persons are listed in the account registration with the spouse or parent) of broker-dealers who have sales agreements with the Distributor (or who clear transactions through such dealers), plans for the dealers, and plans that include as participants only the Eligible Persons, their spouses and/or children; |
3 | companies exchanging securities with the Funds through a merger, acquisition or exchange offer; |
4 | insurance company separate accounts; |
5 | accounts managed by the Manager, a sub-advisor to the Funds and their affiliated companies; |
6 | the Manager or a sub-advisor to the Funds and their affiliated companies; |
7 | an individual or entity with a substantial business relationship with, which may include the officers and employees of the Funds’ custodian or transfer agent, the Manager or a sub-advisor to the Funds and their affiliated companies, or an individual or entity related or relating to such individual or entity; |
8 | full-time employees of banks that have sales agreements with the Distributor, who are solely dedicated to directly supporting the sale of mutual funds; |
9 | directors, officers and employees of financial institutions that have a selling group agreement with the Distributor; |
10 | banks, broker-dealers and other financial institutions (including registered investment advisors and financial planners) that have entered into an agreement with the Distributor or one of its affiliates, purchasing shares on behalf of clients participating in a fund supermarket or in a wrap program, asset allocation program or other program in which the clients pay an asset-based fee; |
11 | clients of authorized dealers purchasing shares in fixed or flat fee brokerage accounts; |
12 | Employer-sponsored defined contribution - type plans, including 401(k) plans, 457 plans, employer sponsored 403(b) plans, profit-sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans, and IRA rollovers involving retirement plan assets invested in a Fund in the American Beacon Funds fund family; and |
13 | Employee benefit and retirement plans for the Manager and its affiliates. |
■
|
redemption proceeds from a non-retirement account (for example, a joint tenant account) used to purchase Fund shares in an IRA or other individual-type retirement account;
|
■
|
“required minimum distributions” (as described in Section 401(a)(9) of the Internal Revenue Code) from an IRA or other individual-type retirement account used to purchase Fund shares in a non-retirement account; and
|
■
|
death distributions paid to a beneficiary’s account that are used by the beneficiary to purchase Fund shares in a different account.
|
■
|
Any partial or complete redemption following death or “disability” (as defined in the Internal Revenue Code) of a shareholder (including one who owns the shares with his or her spouse as a joint tenant with rights of survivorship) from an account in which the deceased or disabled is named. The Manager or a Fund’s transfer agent may require documentation prior to waiver of the charge, including death certificates, physicians’ certificates, etc.
|
■
|
Redemptions from a systematic withdrawal plan. If the systematic withdrawal plan is based on a fixed dollar amount or number of shares, systematic withdrawal redemptions are limited to no more than 10% of your account value or number of shares per year, as of the date the Manager or a Fund’s transfer agent receives your request. If the systematic withdrawal plan is based on a fixed percentage of your account value, each redemption is limited to an amount that would not exceed 10% of your annual account value at the time of withdrawal.
|
■
|
Redemptions from retirement plans qualified under Section 401 of the Internal Revenue Code. The CDSC will be waived for benefit payments made by American Beacon Funds directly to plan participants. Benefit payments include, but are not limited to, payments resulting from death, “disability,” “retirement,” “separation from service” (each as defined in the Internal Revenue Code), “required minimum distributions” (as described in Section 401(a)(9) of the Internal Revenue Code), in-service distributions, hardships, loans and qualified domestic relations orders. The CDSC waiver will not apply in the event of termination of the plan or transfer of the plan to another financial institution.
|
■
|
Redemptions that are required minimum distributions from a traditional IRA as required by the Internal Revenue Service.
|
■
|
Involuntary redemptions as a result of your account not meeting the minimum balance requirements, the termination and liquidation of the Fund, or other actions by the Fund.
|
■
|
Distributions from accounts for which the broker-dealer of record has entered into a written agreement with the Distributor (or Manager) allowing this waiver.
|
■
|
To return excess contributions made to a retirement plan.
|
■
|
To return contributions made due to a mistake of fact.
|
■
|
Derive at least 90% of its gross income each taxable year from (1) dividends, interest, payments with respect to securities loans and gains from the sale or other disposition of securities or foreign currencies (together with Qualifying Other Income (as defined below), “Qualifying Income”), or other income, including gains from options, futures or forward contracts, derived with respect to its business of investing in securities or those currencies (“Qualifying Other Income”) and (2) net income derived from an interest in a “qualified publicly traded partnership” (“QPTP”) (“Gross Income Requirement”). A QPTP is a “publicly traded partnership” (that is, a partnership the interests in which are “traded on an established securities market” or “readily tradable on a secondary market (or the substantial equivalent thereof)” (a “PTP”)) that meets certain qualifying income requirements other than a partnership at least 90% of the gross income of which is Qualifying Income;
|
■
|
Diversify its investments so that, at the close of each quarter of its taxable year, (1) at least 50% of the value of its total assets is represented by cash and cash items, Government securities, securities of other RICs, and other securities, with those other securities limited, in respect of any one issuer, to an amount that does not exceed 5% of the value of the Fund’s total assets and that does not represent more than 10% of the issuer’s outstanding voting securities (equity securities of QPTPs being considered voting securities for these purposes), and (2) not more than 25% of the value of its total assets is invested in (a) the securities (other than Government securities or securities of other RICs) of any one issuer, (b) the securities (other than securities of other RICs) of two or more issuers the Fund controls (by owning 20% or more of their voting power) that are determined to be engaged in the same, similar or related trades or businesses, or (c) the securities of one or more QPTPs (“Diversification Requirements”); and
|
■
|
Distribute annually to its shareholders at least the sum of 90% of its investment company taxable income (generally, net investment income, the excess (if any) of net short-term capital gain over net long-term capital loss, and net gains and losses (if any) from certain foreign currency transactions, all determined without regard to any deduction for dividends paid) and 90% of its net exempt interest income (“Distribution Requirement”).
|
American Beacon or the Manager
|
American Beacon Advisors, Inc.
|
Beacon Funds or Trust
|
American Beacon Funds
|
Board
|
Board of Trustees
|
Brexit
|
The United Kingdom’s departure from the European Union
|
CCO
|
Chief Compliance Officer
|
CDSC
|
Contingent Deferred Sales Charge
|
CFTC
|
Commodity Futures Trading Commission
|
CPO
|
Commodity Pool Operator
|
Denial of Services
|
A cybersecurity incident that results in customers or employees being unable to access electronic systems
|
Dividends
|
Distributions from a Fund’s net investment income
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
DRD
|
Dividends-received deduction.
|
ETF
|
Exchange-Traded Fund
|
ETN
|
Exchange-Traded Note
|
EU
|
European Union
|
FINRA
|
Financial Industry Regulatory Authority, Inc.
|
Forwards
|
Forward Currency Contracts
|
Holdings Policy
|
Policies and Procedures for Disclosure of Portfolio Holdings
|
Internal Revenue Code
|
Internal Revenue Code of 1986, as amended
|
Investment Company Act
|
Investment Company Act of 1940, as amended
|
IRA
|
Individual Retirement Account
|
IRS
|
Internal Revenue Service
|
Junk Bonds
|
High yield, non-investment grade bonds
|
LIBOR
|
ICE LIBOR
|
LOI
|
Letter of Intent
|
Management Agreement
|
A Fund’s Management Agreement with the Manager
|
Manager
|
American Beacon Advisors, Inc.
|
Moody’s
|
Moody’s Investors Service, Inc.
|
NAV
|
Net asset value
|
NDF
|
Non-deliverable forward contracts
|
NYSE
|
New York Stock Exchange
|
OID
|
Original Issue Discount
|
OTC
|
Over-the-Counter
|
Proxy Policy
|
Proxy Voting Policy and Procedures
|
QDI
|
Qualified Dividend Income
|
RIC
|
Regulated Investment Company
|
S&P Global
|
S&P Global Ratings
|
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 Co.
|
TIPS
|
Treasury Inflation Protected Securities
|
Trustee Retirement Plan
|
Trustee Retirement and Trustee Emeritus and Retirement Plan
|
UK
|
United Kingdom
|
PART
C
OTHER
INFORMATION
Item 28. Exhibits
Number |
Exhibit Description | |
(a) |
(1) |
Amended and Restated Declaration of Trust, dated August 20, 2019, is incorporated by reference to Post-Effective Amendment No. 355, filed October 25, 2019 (“PEA No. 355”) |
|
(2)(i) |
Certificates of Designation for American Beacon AHL Managed Futures Strategy Fund and American Beacon Global Evolution Frontier Markets Income Fund, are incorporated by reference to Post-Effective Amendment No. 208, filed December 19, 2014 |
|
(2)(ii) |
Certificate of Designation for American Beacon Frontier Markets Income Fund, is incorporated by reference to Post-Effective Amendment No. 317, filed July 31, 2018 |
|
(2)(iii) |
Amendment to Designation of Series for American Beacon Developing World Income Fund, dated January 4, 2023, is incorporated by reference to Post-Effective Amendment No. 401, filed February 27, 2023 (“PEA No. 401”) |
|
(3)(i) |
Certificates of Designation for American Beacon Bridgeway Large Cap Growth Fund and American Beacon Sound Point Floating Rate Income Fund, are incorporated by reference to Post-Effective Amendment No. 239, filed December 23, 2015 |
|
(3)(ii) |
Amendment to Designation of Series for American Beacon FEAC Floating Rate Income Fund, dated January 3, 2023, is incorporated by reference to PEA No. 401 |
|
(4) |
Certificate of Designation for American Beacon Garcia Hamilton Quality Bond Fund, is incorporated by reference to Post-Effective Amendment No. 253, filed April 1, 2016 |
|
(5) |
Certificate of Designation for American Beacon ARK Disruptive Innovation Fund, is incorporated by reference to Post-Effective Amendment No. 266, filed November 9, 2016 |
|
(6) |
Certificate of Designation for American Beacon TwentyFour Strategic Income Fund, is incorporated by reference to Post-Effective Amendment No. 286, filed March 30, 2017 |
|
(7) |
Certificate of Designation for American Beacon ARK Transformational Innovation Fund, is incorporated by reference to Post-Effective Amendment No. 291, filed May 26, 2017 |
|
(8) |
Certificate of Designation for American Beacon Shapiro Equity Opportunities Fund and American Beacon Shapiro SMID Cap Equity Fund, is incorporated by reference to Post-Effective Amendment No. 297, filed September 11, 2017 |
|
(9)(i) |
Certificate of Designation for American Beacon Tocqueville International Value Fund and American Beacon AHL TargetRisk Fund, dated September 10, 2018, is incorporated by reference to Post-Effective Amendment No. 321, filed October 17, 2018 |
|
(9)(ii) |
Certificate of Designation for American Beacon AHL Target Risk Fund, dated June 6, 2018, is incorporated by reference to Post-Effective Amendment No. 348, filed April 30, 2019 (“PEA No. 348”) |
|
(9)(iii) |
Amendment to Designation of Series for American Beacon EAM International Small Cap Fund, dated January 23, 2023, is incorporated by reference to PEA No. 401 |
|
(10) |
Certificate of Designation for American Beacon SSI Alternative Income Fund, dated March 5, 2019, is incorporated by reference to PEA No. 348 |
|
(11)(i) |
Certificate of Designation for American Beacon TwentyFour Short Term Bond Fund, dated December 2, 2019, is incorporated by reference to Post-Effective Amendment No. 358, filed December 23, 2019 |
|
(11)(ii) |
Amended Certificate of Designation for American Beacon TwentyFour Sustainable Short Term Bond Fund, dated October 7, 2021, is incorporated by reference to Post-Effective Amendment No. 391, filed October 28, 2021 (“PEA No. 391”) |
|
(12) |
Certificate of Designation for American Beacon NIS Core Plus Bond Fund, dated August 17, 2020, is incorporated by reference to Post-Effective Amendment No. 377, filed September 10, 2020 (“PEA No. 377”) |
|
(13) |
Certificate of Designation for American Beacon AHL Multi-Alternatives Fund, dated May 25, 2023, is incorporated by reference to Post-Effective Amendment No. 407, filed August 16, 2023 (“PEA No. 407”) |
(b) |
|
Amended and Restated By-Laws, effective as of August 20, 2019, is incorporated by reference to PEA No. 355 |
(c) |
|
Rights of holders of the securities being registered are contained in Articles III, VIII, X, XI and XII of the Registrant’s Amended and Restated Declaration of Trust and Articles II, III, VI, VII and VIII of the Registrant’s Amended and Restated By-Laws |
(d) |
(1)(A)(i) |
Management Agreement by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated December 29, 2023, is incorporated by reference to Post-Effective Amendment No. 411, filed February 9, 2024 (“PEA No. 411”) |
|
(1)(A)(ii) |
First Amendment to Management Agreement Schedule B by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated January 9, 2024, is incorporated by reference to PEA No. 411 |
2
Number |
Exhibit Description | |
|
(1)(A)(iii) |
Second Amendment to Management Agreement Schedule B by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated January 26, 2024, is incorporated by reference to Post-Effective Amendment No. 412, filed February 23, 2024 (“PEA No. 412”) |
|
(1)(A)(iv) |
Third Amendment to Management Agreement Schedule B by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated February 27, 2024 - (filed herewith) |
|
(1)(A)(v) |
Fourth Amendment to Management Agreement Schedule B by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated March 14, 2024 - (filed herewith) |
|
(1)(B) |
Management Agreement between American Beacon Cayman Managed Futures Strategy Fund, Ltd. and American Beacon Advisors, Inc., dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(1)(C) |
Management Agreement between American Beacon Cayman TargetRisk Company, Ltd. and American Beacon Advisors, Inc., dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(1)(D) |
Management Agreement between American Beacon Cayman Multi-Alternatives Company, Ltd. and American Beacon Advisors, Inc., dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(A)(i) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Barrow, Hanley, Mewhinney & Strauss, LLC, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(A)(ii) |
First Amendment to Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Barrow, Hanley, Mewhinney & Strauss, LLC, dated March 14, 2024 - (filed herewith) |
|
(2)(B) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Brandywine Global Investment Management, LLC, dated March 14, 2024 - (filed herewith) |
|
(2)(C) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Causeway Capital Management LLC, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(D)(i) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Hotchkis and Wiley Capital Management LLC, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(D)(ii) |
First Amendment to Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Hotchkis and Wiley Capital Management LLC, dated March 14, 2024 - (filed herewith) |
|
(2)(E) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Lazard Asset Management LLC, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(F) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Strategic Income Management, LLC, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(G) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Massachusetts Financial Services Company, dated March 14, 2024 - (filed herewith) |
|
(2)(H) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Stephens Investment Management Group, LLC, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(I) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Bridgeway Capital Management, Inc., dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(J) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and The London Company of Virginia, LLC, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(K) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Global Evolution USA, LLC, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(L) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and AHL Partners LLP, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(M) |
Investment Advisory Agreement among American Beacon Cayman Managed Futures Strategy Fund, Ltd., American Beacon Advisors, Inc., and AHL Partners LLP, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(N) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Garcia Hamilton & Associates, L.P., dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(O) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and ARK Investment Management LLC, dated January 9, 2024, is incorporated by reference to PEA No. 411 |
|
(2)(P) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and TwentyFour Asset Management (US) LP, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(Q)(i) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Shapiro Capital Management, LLC, dated January 26, 2024 - (filed herewith) |
|
(2)(Q)(ii) |
First Amendment to Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Shapiro Capital Management, LLC, dated February 27, 2024 - (filed herewith) |
|
(2)(R) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc., and Newton Investment Management North America, LLC, dated March 14, 2024 - (filed herewith) |
3
Number |
Exhibit Description | |
|
(2)(S) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc. and abrdn Investments Limited, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(T) |
Investment Advisory Agreement among American Beacon Cayman TargetRisk Company, Ltd., American Beacon Advisors, Inc., and AHL Partners LLP, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(U) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc. and SSI Investment Management LLC, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(V) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc. and American Century Investment Management, Inc., dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(W) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc. and National Investment Services of America, LLC, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(X) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc. and DePrince, Race & Zollo, Inc., dated March 14, 2024 - (filed herewith) |
|
(2)(Y) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc. and EAM Global Investors LLC, effective December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(Z) |
Investment Advisory Agreement among American Beacon Funds, American Beacon Advisors, Inc. and First Eagle Alternative Credit, LLC, effective December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(2)(AA) |
Investment Advisory Agreement among American Beacon Cayman Multi-Alternatives Company, Ltd., American Beacon Advisors, Inc., and AHL Partners LLP, dated December 29, 2023, is incorporated by reference to PEA No. 411 |
(e) |
|
Distribution Agreement among American Beacon Funds, American Beacon Select Funds and Resolute Investment Distributors, Inc., dated December 29, 2023, is incorporated by reference to PEA No. 411 |
(f) |
|
Bonus, profit sharing or pension plans – (none) |
(g) |
(1) |
Custodian Agreement between Registrant and State Street Bank and Trust Company, dated December 1, 1997, is incorporated by reference to Post-Effective Amendment No. 24, filed February 26, 1998 |
|
(2) |
Amendment to Custodian Agreement between Registrant and State Street Bank and Trust Company, dated May 9, 2019, is incorporated by reference to Post-Effective Amendment No. 353, filed May 30, 2019 |
|
(3) |
Amendment to Custodian Agreement between Registrant and State Street Bank and Trust Company, dated May 13, 2019, is incorporated by reference to PEA No. 355 |
|
(4) |
Amendment to Custodian Agreement between Registrant and State Street Bank and Trust Company, dated October 15, 2019, is incorporated by reference to Post-Effective Amendment No. 357, filed November 22, 2019 (“PEA No. 357”) |
|
(5) |
Amendment to Custodian Agreement between Registrant and State Street Bank and Trust Company, effective January 22, 2020, is incorporated by reference to Post-Effective Amendment No. 362, filed February 14, 2020 |
|
(6) |
Amendment to Custodian Agreement between Registrant and State Street Bank and Trust Company, dated April 15, 2020, is incorporated by reference to Post-Effective Amendment No. 368, filed May 28, 2020 (“PEA No. 368”) |
|
(7) |
Amendment to Custodian Agreement between Registrant and State Street Bank and Trust Company, dated July 31, 2020, is incorporated by reference to Post-Effective Amendment No. 374, filed August 28, 2020 (“PEA No. 374”) |
|
(8) |
Amendment to Custodian Agreement between Registrant and State Street Bank and Trust Company, dated August 27, 2020, is incorporated by reference to PEA No. 377 |
|
(9) |
Amendment to Custodian Agreement between Registrant and State Street Bank and Trust Company, dated October 8, 2020, is incorporated by reference to Post-Effective Amendment No. 381, filed October 28, 2020 (“PEA No. 381”) |
|
(10) |
Amendment to Custodian Agreement between Registrant and State Street Bank and Trust Company, effective November 2, 2020, is incorporated by reference to Post-Effective Amendment No. 383, filed December 14, 2020 (“PEA No. 383”) |
|
(11) |
Amendment to Custodian Agreement between Registrant and State Street Bank and Trust Company, effective August 3, 2021, is incorporated by reference to Post-Effective Amendment No. 389, filed August 27, 2021 (“PEA No. 389”) |
|
(12) |
Amendment to Custodian Agreement between Registrant and State Street Bank and Trust Company, dated February 14, 2023, is incorporated by reference to PEA No. 401 |
|
(13) |
Amendment to Custodian Agreement between Registrant and State Street Bank and Trust Company, dated August 4, 2023, is incorporated by reference to PEA No. 407 |
(h) |
(1)(A) |
Transfer Agency Services Agreement between SS&C GIDS, Inc. and American Beacon Funds, effective February 1, 2023, is incorporated by reference to Post-Effective Amendment No. 402, filed March 22, 2023 |
|
(1)(B) |
First Amendment to Transfer Agency Services Agreement between SS&C GIDS, Inc. and American Beacon Funds, effective August 3, 2023, is incorporated by reference to PEA No. 407 |
4
Number |
Exhibit Description | |
|
(2)(A) |
Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund, and American Beacon Advisors, Inc., dated April 30, 2017, is incorporated by reference to PEA No. 407 |
|
(2)(B) |
First Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund, and American Beacon Advisors, Inc., dated May 8, 2018, is incorporated by reference to PEA No. 381 |
|
(2)(C) |
Second Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund, and American Beacon Advisors, Inc., dated August 26, 2018, is incorporated by reference to PEA No. 381 |
|
(2)(D) |
Third Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., dated March 26, 2019, is incorporated by reference to PEA No. 381 |
|
(2)(E) |
Fourth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., dated October 15, 2019, is incorporated by reference to PEA No. 381 |
|
(2)(F) |
Fifth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., dated January 13, 2020, is incorporated by reference to PEA No. 381 |
|
(2)(G) |
Sixth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective April 30, 2020, is incorporated by reference to PEA No. 381 |
|
(2)(H) |
Seventh Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective July 31, 2020, is incorporated by reference to PEA No. 381 |
|
(2)(I) |
Eighth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective September 10, 2020, is incorporated by reference to PEA No. 381 |
|
(2)(J) |
Ninth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective September 30, 2020, is incorporated by reference to PEA No. 381 |
|
(2)(K) |
Tenth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective November 2, 2020, is incorporated by reference to PEA No. 383 |
|
(2)(L) |
Eleventh Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective August 2, 2021, is incorporated by reference to PEA No. 389 |
|
(2)(M) |
Twelfth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., effective May 23, 2022, is incorporated by reference to Post-Effective Amendment No. 395, filed May 27, 2022 |
|
(2)(N) |
Thirteenth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., effective January 31, 2023, is incorporated by reference to PEA No. 401 |
|
(2)(O) |
Fourteenth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., effective as of August 15, 2023, is incorporated by reference to PEA No. 407 |
|
(2)(P) |
Fifteenth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., effective as of January 19, 2024, is incorporated by reference to PEA No. 411 |
5
Number |
Exhibit Description | |
|
(3)(A) |
Securities Lending Authorization Agreement between the American Beacon Funds and State Street Bank and Trust Company, dated February 16, 2017, is incorporated by reference to Post-Effective Amendment No. 300, filed October 23, 2017 (“PEA No. 300”) |
|
(3)(B) |
Joinder and First Amendment to Securities Lending Authorization Agreement between the American Beacon Funds and State Street Bank and Trust Company, dated June 21, 2017, is incorporated by reference to PEA No. 300 |
|
(3)(C) |
Second Amendment to Securities Lending Authorization Agreement between the American Beacon Funds and State Street Bank and Trust Company, dated September 18, 2017, is incorporated by reference to PEA No. 300 |
|
(3)(D) |
Third Amendment to Securities Lending Authorization Agreement between the American Beacon Funds and State Street Bank and Trust Company, dated December 31, 2018, is incorporated by reference to Post-Effective Amendment No. 351, filed May 15, 2019 |
|
(3)(E) |
Fourth Amendment to Securities Lending Authorization Agreement between the American Beacon Funds and State Street Bank and Trust Company, dated September 6, 2019, is incorporated by reference to PEA No. 374 |
|
(3)(F) |
Fifth Amendment to Securities Lending Authorization Agreement between the American Beacon Funds and State Street Bank and Trust Company, dated May 12, 2020, is incorporated by reference to PEA No. 368 |
|
(3)(G) |
Sixth Amendment to Securities Lending Authorization Agreement between the American Beacon Funds and State Street Bank and Trust Company, dated May 27, 2020, is incorporated by reference to Post-Effective Amendment No. 370, filed June 18, 2020 |
|
(3)(H) |
Seventh Amendment to Securities Lending Authorization Agreement between the American Beacon Funds and State Street Bank and Trust Company, dated November 29, 2022, is incorporated by reference to Post-Effective Amendment No. 399, filed December 23, 2022 (“PEA No. 399”) |
|
(3)(I) |
Eighth Amendment to Securities Lending Authorization Agreement between the American Beacon Funds and State Street Bank and Trust Company, effective January 31, 2023, is incorporated by reference to PEA No. 401 |
|
(3)(J) |
Ninth Amendment to Securities Lending Authorization Agreement between the American Beacon Funds and State Street Bank and Trust Company, effective August 4, 2023, is incorporated by reference to PEA No. 407 |
|
(4) |
Administration Agreement between American Beacon Cayman Managed Futures Strategy Fund, Ltd. and American Beacon Advisors, Inc., dated April 30, 2015, is incorporated by reference to Post-Effective Amendment No. 269, filed December 23, 2016 |
|
(5)(A) |
Administrative Services Agreement by and among American Beacon Funds, American Beacon Institutional Funds Trust, American Beacon Advisors, Inc. and Parametric Portfolio Associates LLC, dated June 10, 2019, is incorporated by reference to PEA No. 357 |
|
(5)(B) |
First Amendment to Administrative Services Agreement by and among American Beacon Funds, American Beacon Institutional Funds Trust, American Beacon Advisors, Inc. and Parametric Portfolio Associates LLC, effective April 30, 2020, is incorporated by reference to PEA No. 368 |
|
(5)(C) |
Second Amendment to Administrative Services Agreement by and among American Beacon Funds, American Beacon Institutional Funds Trust, American Beacon Advisors, Inc. and Parametric Portfolio Associates LLC, dated August 19, 2022, is incorporated by reference to PEA No. 399 |
|
(5)(D) |
Third Amendment to Administrative Services Agreement by and among American Beacon Funds, American Beacon Institutional Funds Trust, American Beacon Advisors, Inc. and Parametric Portfolio Associates LLC, dated October 25, 2022, is incorporated by reference to PEA No. 399 |
|
(5)(E) |
Fourth Amendment to Administrative Services Agreement by and among American Beacon Funds, American Beacon Institutional Funds Trust, American Beacon Advisors, Inc. and Parametric Portfolio Associates LLC, effective as of August 9, 2023, is incorporated by reference to PEA No. 407 |
|
(6) |
Service Plan Agreement for the American Beacon Funds Investor Class, dated March 6, 2009, is incorporated by reference to Post-Effective Amendment No. 77, filed August 3, 2009 |
|
(7) |
Service Plan Agreement for the American Beacon Funds Advisor Class (formerly known as the AAdvantage Funds Service Class), dated May 1, 2003, is incorporated by reference to Post-Effective Amendment No. 45, filed May 1, 2003 (“PEA No. 45”) |
|
(8)(A) |
Service Plan Agreement for the American Beacon Funds A Class, dated February 16, 2010, is incorporated by reference to Post-Effective Amendment No. 84, filed March 16, 2010 |
|
(8)(B) |
Amended and Restated Schedule A to the Service Plan Agreement for the American Beacon Funds A Class, effective August 4, 2023, is incorporated by reference to PEA No. 407 |
|
(9)(A) |
Service Plan Agreement for the American Beacon Funds C Class, dated May 25, 2010, is incorporated by reference to Post-Effective Amendment No. 90, filed June 15, 2010 (“PEA No. 90”) |
|
(9)(B) |
Amended and Restated Schedule A to the Service Plan Agreement for the American Beacon Funds C Class, effective December 29, 2023, is incorporated by reference to PEA No. 412 |
6
Number |
Exhibit Description | |
|
(10)(A) |
Fee Waiver/Expense Reimbursement Agreement for American Beacon NIS Core Plus Bond Fund, American Beacon ARK Transformational Innovation Fund, American Beacon SSI Alternative Income Fund, American Beacon Shapiro Equity Opportunities Fund, American Beacon Shapiro SMID Cap Equity Fund, American Beacon TwentyFour Strategic Income Fund, American Beacon TwentyFour Sustainable Short Term Bond Fund, American Beacon Garcia Hamilton Quality Bond Fund, American Beacon International Equity Fund, American Beacon EAM International Small Cap Fund R5 Class Shares, American Beacon AHL TargetRisk Fund, American Beacon Bridgeway Large Cap Growth Fund, American Beacon Stephens Mid-Cap Growth Fund, American Beacon Stephens Small Cap Growth Fund, effective December 15, 2023, is incorporated by reference to PEA No. 411 |
|
(10)(B) |
Fee Waiver/Expense Reimbursement Agreement for American Beacon FEAC Floating Rate Income Fund, American Beacon SiM High Yield Opportunities Fund and American Beacon The London Company Income Equity Fund, effective January 1, 2024, is incorporated by reference to Post-Effective Amendment No. 410, filed December 29, 2023 (“PEA No. 410”) |
|
(10)(C) |
Investment Adviser Fee Waiver Agreement for American Beacon SSI Alternative Income Fund, effective December 29, 2023, is incorporated by reference to PEA No. 411 |
|
(10)(D) |
Fee Waiver/Expense Reimbursement Agreement for American Beacon AHL Multi-Alternatives Fund, effective January 1, 2024 - (filed herewith) |
|
(10)(E) |
Fee Waiver/Expense Reimbursement Agreement for American Beacon EAM International Small Cap Fund Y and Investor Class Shares, effective March 1, 2024 - (filed herewith) |
(i) |
|
Opinion and consent of counsel — (filed herewith) |
(j) |
|
Consent of Independent Registered Public Accounting Firm — (filed herewith) |
(k) |
|
Financial statements omitted from prospectus — (none) |
(l) |
|
Letter of Investment Intent, is incorporated by reference to Post-Effective Amendment No. 23, filed December 18, 1997 |
(m) |
(1) |
Distribution Plan pursuant to Rule 12b-1 for the Advisor Class (formerly known as the Service Class), dated May 1, 2003, is incorporated by reference to PEA No. 45 |
|
(2)(A) |
Distribution Plan pursuant to Rule 12b-1 for the A Class, dated February 16, 2010, is incorporated by reference to Post-Effective Amendment No. 88, filed May 17, 2010 |
|
(2)(B) |
Amended and Restated Schedule A to the Distribution Plan pursuant to Rule 12b-1 for the A Class, effective August 4, 2023, is incorporated by reference to PEA No. 407 |
|
(3)(A) |
Distribution Plan pursuant to Rule 12b-1 for the C Class, dated May 25, 2010, is incorporated by reference to PEA No. 90 |
|
(3)(B) |
Amended and Restated Schedule A to the Distribution Plan pursuant to Rule 12b-1 for the C Class, effective August 4, 2023, is incorporated by reference to PEA No. 407 |
(n) |
|
Amended and Restated Plan Pursuant to Rule 18f-3, dated November 12, 2019, is incorporated by reference to PEA No. 391 |
(p) |
(1) |
Code of Ethics of American Beacon Advisors, Inc., American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, and Resolute Investment Distributors, Inc., dated August 11, 2023, is incorporated by reference to PEA No. 407 |
|
(2) |
Code of Ethics of Barrow, Hanley, Mewhinney & Strauss, Inc., revised December 31, 2022, is incorporated by reference to PEA No. 411 |
|
(3) |
Code of Ethics of Brandywine Global Investment Management, LLC, dated February 2023, is incorporated by reference to PEA No. 411 |
|
(4) |
Code of Ethics of Causeway Capital Management LLC, dated April 25, 2005, as revised December 30, 2022, is incorporated by reference to PEA No. 411 |
|
(5) |
Code of Ethics of Hotchkis and Wiley Capital Management, LLC, dated September 1, 2021, is incorporated by reference to Post-Effective Amendment No. 393, filed February 22, 2022 (“PEA No. 393”) |
|
(6) |
Code of Ethics and Personal Investment Policy of Lazard Asset Management LLC, is incorporated by reference to PEA No. 393 |
|
(7) |
Code of Conduct for The Bank of New York Mellon Corporation, parent company of Newton Investment Management North America, LLC, dated 2022, is incorporated by reference to PEA No. 411 |
|
(8) |
Code of Ethics of Strategic Income Management, LLC, dated February 2023, is incorporated by reference to PEA No. 410 |
|
(9) |
Code of Ethics of Massachusetts Financial Services Co., dated December 8, 2022, is incorporated by reference to PEA No. 401 |
|
(10) |
Code of Ethics for Stephens Investment Management Group, LLC, dated February 2023, is incorporated by reference to Post-Effective Amendment No. 403, filed April 27, 2023 |
|
(11) |
Code of Ethics for Bridgeway Capital Management, Inc., dated July 3, 2023 - (filed herewith) |
7
Number |
Exhibit Description | |
|
(12) |
Code of Ethics for The London Company of Virginia, LLC, is incorporated by reference to PEA No. 410 |
|
(13) |
Code of Ethics for Global Evolution USA, LLC, dated January 2021, is incorporated by reference to Post-Effective Amendment No. 388, filed May 27, 2021 |
|
(14) |
Code of Ethics for AHL Partners LLP, amended October 11, 2023 - (filed herewith) |
|
(15) |
Code of Ethics for Garcia Hamilton & Associates, L.P., dated February 2023, is incorporated by reference to PEA No. 411 |
|
(16) |
Code of Ethics for ARK Investment Management LLC, adopted June 30, 2014, as amended June 1, 2021, is incorporated by reference to Post-Effective Amendment No. 397, filed October 28, 2022 (“PEA No. 397”) |
|
(17) |
Code of Ethics for TwentyFour Asset Management (US) LP, is incorporated by reference to PEA No. 410 |
|
(18) |
Code of Ethics for Shapiro Capital Management, LLC, is incorporated by reference to PEA No. 410 |
|
(19) |
Code of Ethics for abrdn Investments Limited, is incorporated by reference to Post-Effective Amendment No. 404, filed May 25, 2023 (“PEA No. 404”) |
|
(20) |
Code of Ethics for SSI Investment Management LLC, dated June 28, 2022, is incorporated by reference to PEA No. 397 |
|
(21) |
Code of Ethics for American Century Investment Management, Inc., dated October 29, 1999, as revised September 1, 2023, is incorporated by reference to PEA No. 411 |
|
(22) |
Code of Ethics for National Investment Services of America, LLC, dated May 2022, is incorporated by reference to PEA No. 404 |
|
(23) |
Code of Ethics for DePrince, Race & Zollo, Inc., dated August 2023, is incorporated by reference to PEA No. 411 |
|
(24) |
Code of Ethics for EAM Global Investors LLC, effective October 31, 2022, is incorporated by reference to Post-Effective Amendment No. 400, filed December 30, 2022 |
|
(25) |
Code of Ethics for First Eagle Alternative Credit, LLC, effective April 2012 and revised January 1, 2023, is incorporated by reference to PEA No. 410 |
Other Exhibits | ||
|
|
Powers of Attorney for Trustees of American Beacon Funds, American Beacon Select Funds and American Beacon Institutional Funds Trust, effective as of January 31, 2024, is incorporated by reference to PEA No. 411 |
Item 29. Persons Controlled by or under Common Control with Registrant
The Trust through the American Beacon AHL Managed Futures Strategy Fund, a separate series of the Trust, wholly owns and controls the American Beacon Cayman Managed Futures Strategy Fund, Ltd. (“Managed Futures Subsidiary”), a company organized under the laws of the Cayman Islands. The Managed Futures Subsidiary’s financial statements will be included, on a consolidated basis, in the American Beacon AHL Managed Futures Strategy Fund’s annual and semi-annual reports to shareholders.
The Trust through the American Beacon AHL TargetRisk Fund, a separate series of the Trust, wholly owns and controls the American Beacon Cayman TargetRisk Company, Ltd. (“TargetRisk Subsidiary”), a company organized under the laws of the Cayman Islands. The TargetRisk Subsidiary’s financial statements will be included, on a consolidated basis, in the American Beacon AHL TargetRisk Fund’s annual and semi-annual reports to shareholders.
The Trust through the American Beacon AHL Multi-Alternatives Fund, a separate series of the Trust, wholly owns and controls the American Beacon Cayman Multi-Alternatives Company, Ltd. (“Multi-Alternatives Subsidiary”), a company organized under the laws of the Cayman Islands. The Multi-Alternatives Subsidiary’s financial statements will be included, on a consolidated basis, in the American Beacon AHL Multi-Alternatives Fund’s annual and semi-annual reports to shareholders.
Item 30. Indemnification
Article XI of the Amended and Restated Declaration of Trust of the Trust provides that:
Limitation of Liability
Section 1. Provided they have exercised reasonable care and have acted under the reasonable belief that their actions are in the best interest of the Trust, the Trustees and officers of the Trust shall not be responsible for or liable in any event for neglect or wrongdoing of them or any officer, agent, employee or investment adviser of the Trust, and shall not be liable for errors of judgment or mistakes of fact or law, but nothing contained herein shall protect any Trustee or officer against any liability to which he or she would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office.
Indemnification
Section 2.
(a) Subject to the exceptions and limitations contained in paragraph (b) below: |
(i) every person who is, or has been, a Trustee or officer or employee of the Trust or is or was serving at the request of the Trust as a trustee, director, officer, employee or agent of another organization in which the Trust has an interest as a shareholder, creditor or otherwise (“Covered Person”) shall be indemnified by the Trust and each series to the fullest extent permitted by law, including the 1940 Act and the rules and regulations thereunder as amended from time to time and interpretations thereunder, against liability and against all expenses reasonably incurred |
8
or paid by him or her in connection with any claim, action, suit or proceeding in which he or she becomes involved as a party or otherwise by virtue of his or her being or having been a Covered Person and against amounts paid or incurred by him or her in the settlement thereof; |
(ii) subject to the provisions of this Section 2, each Covered Person shall, in the performance of his or her duties, be fully and completely justified and protected with regard to any act or any failure to act resulting from reliance in good faith upon the records, books and accounts of the Trust or, as applicable, any Series, upon an opinion or other advice of legal counsel, or upon reports made or advice given to the Trust or, as applicable, any Series, by any Trustee or any of its officers, employees, or a service provider selected with reasonable care by the Trustees or officers of the Trust, regardless of whether the person rendering such report or advice may also be a Trustee, officer or employee of the Trust or, as applicable, any Series. |
(iii) as used herein, the words “claim,” “action,” “suit,” or “proceeding” shall apply to all claims, actions, suits or proceedings (civil, criminal, investigative or other, including appeals), actual or threatened, and the words “liability” and “expenses” shall include, without limitation, attorneys’ fees, costs, judgments, amounts paid in settlement, fines, penalties and other liabilities whatsoever. |
(b) To the extent required under the 1940 Act and the rules and regulations thereunder as amended from time to time and interpretations thereunder, but only to such extent no indemnification shall be provided hereunder to a Covered Person: |
(i) who shall have been adjudicated by a court or body before which the proceeding was brought to be liable to the Trust or its Shareholders by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office; or |
(ii) in the event of a settlement, unless there has been a determination that such Covered Person did not engage in willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office: (A) by the court or other body approving the settlement; (B) by at least a majority of those Trustees who are neither interested persons of the Trust nor are parties to the matter based upon a review of readily available facts (as opposed to a full trial type inquiry); or (C) by written opinion of independent legal counsel based upon a review of readily available facts (as opposed to a full trial type inquiry). |
(c) The rights of indemnification herein provided may be insured against by policies maintained by the Trust, shall be severable, shall not be exclusive of or affect any other rights to which any Covered Person may now or hereafter be entitled, shall continue as to a person who has ceased to be such Covered Person and shall inure to the benefit of the heirs, executors and administrators of such Covered Person. Nothing contained herein shall affect any rights to indemnification to which any Covered Person or other person may be entitled by contract or otherwise under law or prevent the Trust from entering into any contract to provide indemnification to any Covered Person or other Person. |
(d) To the extent that any determination is required to be made as to whether a Covered Person engaged in conduct for which indemnification is not provided as described herein, or as to whether there is reason to believe that a Covered Person ultimately will be found entitled to indemnification, the Person or Persons making the determination shall afford the Covered Person a rebuttable presumption that the Covered Person has not engaged in such conduct and that there is reason to believe that the Covered Person ultimately will be found entitled to indemnification. |
(e) To the maximum extent permitted by applicable law, including Section 17(h) of the 1940 Act and the rules and regulations thereunder as amended from time to time and interpretations thereunder, expenses in connection with the preparation and presentation of a defense to any claim, action, suit or proceeding of the character described in paragraph (a) of this Section 2 shall be paid by the Trust or the applicable Series from time to time prior to final disposition thereof upon receipt of an undertaking by or on behalf of such Covered Person that such amount will be paid over by him or her to the Trust or a Series, as applicable, if it is ultimately determined that he or she is not entitled to indemnification under this Section 2; provided, however, that any such advancement will be made in accordance with any conditions required by the Commission. |
According to Article XII, Section 1 of the Amended and Restated Declaration of Trust, nothing in the Amended and Restated Declaration of Trust shall be construed to make the Shareholders, either by themselves or with the Trustees, partners or members of a joint stock association. Trustees are not liable personally to any person extending credit to, contracting with or having any claim against the Trust, a particular Portfolio or the Trustees. A Trustee, however, is not protected from liability due to willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office.
Article V, Section 5 provides that, subject to the provisions of Article XI, the Trustees shall not be liable for any act or omission in accordance with certain advice of counsel or other experts or for failing to follow such advice. Article XI, Section 1 provides that the Trustees are not liable for errors of judgment or mistakes of fact or law, but a Trustee is not protected from liability due to willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office, for any act or omission in accordance with advice of counsel or other experts or for failing to follow such advice.
Numbered Paragraph 10 of the Management Agreement provides that:
10. Limitation of Liability of the Manager. The Manager shall not be liable for any error of judgment or mistake of law or for any loss suffered by a Trust or any Fund in connection with the matters to which this Agreement relate except a loss resulting from the willful misfeasance, bad faith or gross negligence on its part in the performance of its duties or from reckless disregard by it of its obligations and duties under this Agreement. Any person, even though also an officer, partner, employee, or agent of the Manager, who may be or become an officer, Board member, employee or agent of a Trust shall be deemed, when rendering services to a Trust or acting in any business of a Trust, to be rendering such services to or acting solely for a Trust and not as an officer, partner, employee, or agent or one under the control or direction of the Manager even though paid by it. The U.S. federal and state securities laws impose liabilities on persons who act in good faith, and, therefore, nothing in this Agreement is intended to limit the obligations of the Manager under such laws. This Paragraph 10 does not in any manner preempt any separate written indemnification commitments made by the Manager with respect to any matters encompassed by this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with Aberdeen Asset Managers Limited provides that:
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9. Liability of Adviser. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement, provided however, the Adviser agrees to indemnify and hold harmless, the Manager, any affiliated person within the meaning of Section 2(a)(3) of the Investment Company Act, and each person, if any, who, within the meaning of Section 15 of the Securities Act, controls the Manager, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Manager or such affiliated person or controlling person may become subject under the securities laws, any other federal or state law, at common law or otherwise, arising out of and to the extent of the Adviser’s responsibilities to the Trust which may be based upon any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the Adviser’s obligations and/or duties under this Agreement by the Adviser or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the Adviser. The indemnification in this Section shall survive the termination of this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with AHL Partners LLP provides, in relevant part, that:
9. Liability. The Adviser shall have no liability to the Trust, its shareholders, the Manager or any third party arising out of or related to this Agreement, provided however, the Adviser agrees to indemnify and hold harmless, the Manager, any affiliated person within the meaning of Section 2(a)(3) of the Investment Company Act, and each person, if any, who, within the meaning of Section 15 of the Securities Act, controls the Manager, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Manager or such affiliated person or controlling person may become subject under the securities or commodities laws, any other federal or state law, at common law or otherwise, arising out of the Adviser’s responsibilities to the Trust which may be based upon any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the Adviser’s obligations and/or duties under this Agreement, relating to its trading activities or information provided to the Manager regarding the Adviser, by the Adviser or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the Adviser. The U.S. federal and state securities laws impose liabilities on persons who act in good faith, and therefore, nothing in this Agreement is intended to limit the obligations of the Adviser under such laws.
Numbered Paragraph 9 of the Investment Advisory Agreement with American Century Investment Management, Inc. provides, in relevant part, that:
9. Liability of Adviser. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement, provided however, the Adviser agrees to indemnify and hold harmless, the Manager, any affiliated person within the meaning of Section 2(a)(3) of the Investment Company Act, and each person, if any, who, within the meaning of Section 15 of the Securities Act, controls the Manager, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Manager or such affiliated person or controlling person may become subject under the securities laws, any other federal or state law, at common law or otherwise, arising out of the Adviser’s responsibilities to the Trust which may be based upon any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the Adviser’s obligations and/or duties under this Agreement by the Adviser or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the Adviser. The indemnification in this Section shall survive the termination of this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with ARK Investment Management LLC provides, in relevant part, that:
9. Liability of the Parties. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement, provided however, the Adviser agrees to indemnify and hold harmless, the Manager, any affiliated person of the Adviser within the meaning of Section 2(a)(3) of the Investment Company Act (“Affiliated Person”), and each person, if any, who, within the meaning of Section 15 of the Securities Act, controls the Manager (“Controlling Person”), against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Manager or such Affiliated Person or Controlling Person may become subject under the securities laws, any other federal or state law, at common law or otherwise, arising out of the Adviser’s responsibilities to the Trust or the Funds that may be based upon any willful misfeasance, bad faith, gross negligence, or reckless disregard of the Adviser’s obligations and/or duties under this Agreement by the Adviser or by any of its directors, officers, employees, agents, or any Affiliate Person acting on behalf of the Adviser. The indemnification in this Section shall survive the termination of this Agreement.
The Manager agrees to indemnify and hold harmless, the Adviser, any Affiliated Person of the Adviser, and each Controlling Person of the Adviser, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Adviser or its Affiliated Persons or Controlling Person may become subject under the securities laws, any other federal or state law, at common law or otherwise, arising out of the Manager’s responsibilities to the Trust or the Funds that may be based upon any willful misfeasance, bad faith, gross negligence, or reckless disregard by the Manager or by any of its directors, officers, employees, agents, or any Affiliated Person acting on behalf of the Manager of the Manager’s obligations and/or duties under its agreements with the Trust or the Funds. The indemnification in this Section shall survive the termination of this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with Barrow, Hanley, Mewhinney & Straus, Inc. provides that:
9. Liability of Adviser. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement except with respect to claims which occur due to any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with Brandywine Global Investment Management, LLC provides that:
9. Liability of Adviser. No provision of this Agreement shall be deemed to protect the Adviser against any liability to the Trust or its shareholders to which it might otherwise be subject by reason of any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with Bridgeway Capital Management, Inc. provides that:
9. Liability of Adviser. The Adviser shall have no liability to the Trust, its shareholders, the Manager or any third party arising out of or related to this Agreement except with respect to claims which occur due to any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.
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The Manager shall indemnify the Adviser, its officers, directors and employees, and each person, if any, who, within the meaning of the Securities Act of 1933, controls the Adviser, for any liability and expenses, including without limitation, reasonable attorneys’ fees and expenses, which may be sustained as a result of the Manager’s willful misfeasance, bad faith, gross negligence, reckless disregard of its duties hereunder.
Numbered Paragraph 9 of the Investment Advisory Agreement with Causeway Capital Management LLC provides that:
9. Liability of Adviser. No provision of this Agreement shall be deemed to protect the Adviser against any liability to the Trust or its shareholders to which it might otherwise be subject by reason of any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with DePrince, Race & Zollo, Inc. provides that:
9. Liability of Adviser; Indemnification. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement, provided however, the Adviser shall not be protected against any liability to, and shall indemnify and hold harmless, the Trust and its shareholders, the Manager, any affiliated person thereof within the meaning of Section 2(a)(3) of the Investment Company Act, and any controlling person thereof as described in Section 15 of the Securities Act, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Trust and its shareholders, the Manager or such affiliated person or controlling person may become subject under the securities laws, any other federal or state law, at common law or otherwise, however arising out of or in connection with the performance of the Adviser’s responsibilities to the Trust which may be based upon: (i) any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the Adviser’s obligations and/or duties under this Agreement by the Adviser or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the Adviser; or (ii) any untrue statement of a material fact contained in the Trust’s prospectus and statement of additional information applicable to a Fund, or any other Trust filings, proxy materials, reports, advertisements, sales literature or other materials pertaining to a Fund, the Trust or the Manager, or the omission to state therein a material fact known to the Adviser which was required to be stated therein or necessary to make the statements therein not misleading, if such statement or omission was made in reliance upon information furnished to the Manager or the Trust by the Adviser for use therein. The indemnification in this Section shall survive the termination of this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with EAM Global Investors LLC provides that:
9. Liability of Adviser; Indemnification. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement, provided however, the Adviser shall not be protected against any liability to, and shall indemnify and hold harmless, the Trust and its shareholders, the Manager, any affiliated person thereof within the meaning of Section 2(a)(3) of the Investment Company Act, and any controlling person thereof as described in Section 15 of the Securities Act, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Trust and its shareholders, the Manager or such affiliated person or controlling person may become subject under the securities laws, any other federal or state law, at common law or otherwise, however arising out of or in connection with the performance of the Adviser’s responsibilities to the Trust which may be based upon: (i) any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the Adviser’s obligations and/or duties under this Agreement by the Adviser or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the Adviser; or (ii) any untrue statement of a material fact contained in the Trust’s prospectus and statement of additional information applicable to a Fund, or any other Trust filings, proxy materials, reports, advertisements, sales literature or other materials pertaining to a Fund, the Trust or the Manager, or the omission to state therein a material fact known to the Adviser which was required to be stated therein or necessary to make the statements therein not misleading, if such statement or omission was made in reliance upon information furnished to the Manager or the Trust by the Adviser for use therein. The indemnification in this Section shall survive the termination of this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with First Eagle Alternative Credit, LLC provides that:
9. Liability of Adviser; Indemnification. The Adviser shall have no liability to the Trust, its shareholders, the Manager, any affiliated person thereof within the meaning of Section 2(a)(3) of the Investment Company Act, and any controlling person thereof as described in Section 15 of the Securities Act (“Manager Affiliate”) or any third party arising out of or related to this Agreement, provided however, the Adviser shall not be protected against any liability to, and shall indemnify and hold harmless, the Trust and its shareholders, the Manager, and any Manager Affiliate, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Trust and its shareholders, the Manager or such affiliated person or controlling person may become subject under the securities laws, any other federal or state law, at common law or otherwise, however arising out of or in connection with the performance of the Adviser’s responsibilities to the Trust which may be based upon: (i) any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the Adviser’s obligations and/or duties under this Agreement by the Adviser or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the Adviser; or (ii) any untrue statement of a material fact contained in the Trust’s prospectus and statement of additional information applicable to a Fund, or any other Trust filings, proxy materials, reports, advertisements, sales literature or other materials pertaining to a Fund, the Trust or the Manager, or the omission to state therein a material fact known to the Adviser which was required to be stated therein or necessary to make the statements therein not misleading, if such statement or omission was made in reliance upon information furnished to the Manager or the Trust by the Adviser for use therein; provided, however, that in no case is the Adviser’s indemnity in favor of the Trust, the Manager or Manager Affiliate deemed to protect such person against any liability to which any such person would otherwise be subject by reason of willful misconduct, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement. The indemnification in this Section shall survive the termination of this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with Garcia Hamilton & Associates, L.P. provides that:
9. Liability of Adviser. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement, provided however, the Adviser agrees to indemnify and hold harmless, the Manager, any affiliated person within the meaning of Section 2(a)(3) of the Investment Company Act, and each person, if any, who, within the meaning of Section 15 of the Securities Act, controls the Manager, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Manager or such affiliated person or controlling person may become subject under the securities laws, any other federal or state law, at common law or otherwise, arising out of the Adviser’s responsibilities to the Trust which may be based upon any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the
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Adviser’s obligations and/or duties under this Agreement by the Adviser or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the Adviser. The indemnification in this Section shall survive the termination of this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with Global Evolution USA, LLC provides that:
9. Liability of Adviser. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement, provided however, the Adviser agrees to indemnify and hold harmless, the Manager, any affiliated person within the meaning of Section 2(a)(3) of the Investment Company Act, and each person, if any, who, within the meaning of Section 15 of the Securities Act, controls the Manager, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Manager or such affiliated person or controlling person may become subject under the securities laws, any other federal or state law, at common law or otherwise, arising out of the Adviser’s responsibilities to the Trust which may be based upon any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the Adviser’s obligations and/or duties under this Agreement by the Adviser or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the Adviser. The indemnification in this Section shall survive the termination of this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with Hotchkis and Wiley Capital Management, LLC provides that:
9. Liability of Adviser. No provision of this Agreement shall be deemed to protect the Adviser against any liability to the Trust or its shareholders to which it might otherwise be subject by reason of any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with Lazard Asset Management LLC provides that:
9. Liability of Adviser. No provision of this Agreement shall be deemed to protect the Adviser against any liability to the Trust or its shareholders to which it might otherwise be subject by reason of any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with Massachusetts Financial Services Co. provides that:
9. Liability of Adviser. The Adviser shall have no liability to the Trust, its shareholders or any other third party arising out of or related to this Agreement except with respect to claims which occur due to any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with National Investment Services of America, LLC provides that
9. (a) Liability of Adviser and Indemnification by Adviser. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement, provided however, the Adviser agrees to indemnify and hold harmless, the Trust and its shareholders, the Manager, any affiliated person thereof within the meaning of Section 2(a)(3) of the Investment Company Act, and any controlling person thereof as described in Section 15 of the Securities Act, from and against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Trust and its shareholders, the Manager or such affiliated person or controlling person may become subject under the securities laws, any other federal or state law, at common law or otherwise, however arising out of or in connection with the performance of the Adviser’s responsibilities to the Trust which may be based upon: (i) any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the Adviser’s obligations and/or duties under this Agreement by the Adviser or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the Adviser, or (ii) any untrue statement of a material fact contained in the Trust’s prospectus and statement of additional information applicable to a Fund, or any other Trust filings, proxy materials, reports, advertisements, sales literature or other materials pertaining to a Fund, the Trust or the Manager, or the omission to state therein a material fact known to the Adviser which was required to be stated therein or necessary to make the statements therein not misleading, if such statement or omission was made in reliance upon information furnished to the Manager or the Trust by the Adviser for use therein. The indemnification in this Section shall survive the termination of this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with Newton Investment Management North America, LLC provides that:
9. Liability of Adviser. No provision of this Agreement shall be deemed to protect the Adviser against any liability to the Trust or its shareholders to which it might otherwise be subject by reason of any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with Shapiro Capital Management, LLC provides that:
9. Liability of Adviser. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement, provided however, the Adviser agrees to indemnify and hold harmless, the Manager, any affiliated person within the meaning of Section 2(a)(3) of the Investment Company Act, and each person, if any, who, within the meaning of Section 15 of the Securities Act, controls the Manager, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Manager or such affiliated person or controlling person may become subject under the securities laws, any other federal or state law, at common law or otherwise, arising out of the Adviser’s responsibilities to the Trust which may be based upon any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the Adviser’s obligations and/or duties under this Agreement by the Adviser or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the Adviser. The indemnification in this Section shall survive the termination of this Agreement.
Numbered Paragraph 9 of the Form of Investment Advisory Agreement with SSI Investment Management LLC provides that:
9. Liability of Adviser and Manager. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement. Each of the Adviser and the Manager agrees to indemnify and hold harmless, the other party, any affiliated person within the meaning of Section 2(a)(3) of the Investment Company Act, and each person, if any, who, within the meaning of Section 15 of the Securities Act, controls the other party, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the other party or such affiliated person or controlling person may become subject under the securities laws, any other federal or state law, at common law or
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otherwise, arising out of the indemnifying party’s responsibilities to the Trust based upon any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the indemnifying party’s obligations and/or duties under this Agreement by the indemnifying party or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the indemnifying party. The indemnification in this Section shall survive the termination of this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with Stephens Investment Management Group, LLC provides that:
9. Liability of Adviser. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement except with respect to claims which occur due to any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with Strategic Income Management, LLC provides that:
9. Liability of Adviser. The Adviser shall have no liability to the Trust, its shareholders or any other third party arising out of or related to this Agreement except with respect to claims which occur due to any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with The London Company of Virginia, LLC provides that:
9. Liability of Adviser. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement except with respect to claims which occur due to any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.
Numbered Paragraph 9 of the Investment Advisory Agreement with TwentyFour Asset Management (US) LP provides that:
9. Liability. The Adviser, including its officers, directors, employees and agents shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement, provided however, the Adviser agrees to indemnify and hold harmless, the Manager, its officers, directors, employees and agents (each such person, a “Manager Indemnified Persons”) against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and related expenses) (“Losses”), to which a Manager Indemnified Persons may become subject under the securities laws, any other federal or state law, at common law or otherwise, arising out of the Adviser’s responsibilities to the Trust which may be based upon any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the Adviser’s obligations and/or duties under this Agreement by the Adviser or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the Adviser, provided, however that the Manager’s obligation under this paragraph 9 shall be reduced to the extent that the Losses experienced by a Manager Indemnified Person are caused by or are otherwise directly related to a Manager Indemnified Person’s own willful misfeasance, bad faith, gross negligence, or reckless disregard of its obligations and duties under this Agreement.
The Manager, including its officers, directors, employees and agents shall have no liability to the Adviser, its shareholders or any third party arising out of or related to this Agreement, provided however, the Manager agrees to indemnify and hold harmless, the Adviser, its officers, directors, employees and agents (each such person, an “Adviser Indemnified Persons”) against any and all Losses, to which an Adviser Indemnified Persons may become subject under the securities laws, any other federal or state law, at common law or otherwise, arising out of the Manager’s responsibilities to the Trust, its shareholders or any third party, provided, however that the Manager’s obligation under this paragraph 9 shall be reduced to the extent that the Losses experienced by an Adviser Indemnified Person are caused by or are otherwise directly related to an Adviser Indemnified Person’s own willful misfeasance, bad faith, gross negligence, or reckless disregard of its obligations and duties under this Agreement.
Without limiting the generality of the foregoing, neither the Adviser nor the Manager will be liable for any indirect, special, incidental or consequential damage.
The indemnification in this Section shall survive the termination of this Agreement.
Section 4.2 of the Distribution Agreement provides that:
(a) Notwithstanding anything in this Agreement to the contrary, Resolute shall not be responsible for, and the Client shall on behalf of each applicable Fund or Class thereof, indemnify and hold harmless Resolute, its employees, directors, officers and managers and any person who controls Resolute within the meaning of section 15 of the Securities Act or section 20 of the Securities Exchange Act of 1934, as amended, (for purposes of this Section 4.2(a), “Resolute Indemnitees”) from and against, any and all losses, damages, costs, charges, reasonable counsel fees, payments, liabilities and other expenses of every nature and character (including, but not limited to, direct and indirect reasonable reprocessing costs) arising out of or attributable to all and any of the following (for purposes of this Section 4.2(a), a “Resolute Claim”) |
(i) any material action (or omission to act) of Resolute or its agents taken in connection with this Agreement; provided, that such action (or omission to act) is taken in good faith and without willful misfeasance, negligence or reckless disregard by Resolute, or its affiliates, of its duties and obligations under this Agreement; |
(ii) any untrue statement of a material fact contained in the Registration Statement or arising out of or based upon any alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, unless such statement or omission was made in reliance upon, and in conformity with, information furnished to the Client in connection with the preparation of the Registration Statement or exhibits to the Registration Statement by or on behalf of Resolute; |
(iii) any material breach of the Clients’ agreements, representations, warranties, and covenants in Sections 2.9 and 5.2 of this Agreement; or |
(iv) the reliance on or use by Resolute or its agents or subcontractors of information, records, documents or services which have been prepared, maintained or performed by the Client or any agent of the Client, including but not limited to any Predecessor Records provided pursuant to Section 2.9(b). |
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(b) Resolute will indemnify, defend and hold the Client and their several officers and members of their Governing Bodies and any person who controls the Client within the meaning of section 15 of the Securities Act or section 20 of the Securities Exchange Act of 1934, as amended, (collectively, the “Client Indemnitees” and, with the Resolute Indemnitees, an “Indemnitee”), free and harmless from and against any and all claims, demands, actions, suits, judgments, liabilities, losses, damages, costs, charges, reasonable counsel fees and other expenses of every nature and character (including the cost of investigating or defending such claims, demands, actions, suits or liabilities and any reasonable counsel fees incurred in connection therewith), but only to the extent that such claims, demands, actions, suits, judgments, liabilities, losses, damages, costs, charges, reasonable counsel fees and other expenses result from, arise out of or are based upon all and any of the following (for purposes of this Section 4.2(c), a “Client Claim” and, with a Resolute Claim, a “Claim”): |
(i) any material action (or omission to act) of Resolute or its agents taken in connection with this Agreement, provided that such action (or omission to act) is taken in good faith and without willful misfeasance, negligence or reckless disregard by Resolute, or its affiliates, of its duties and obligations under this Agreement. |
(ii) any untrue statement of a material fact contained in the Registration Statement or any alleged omission of a material fact required to be stated or necessary to make the statements therein not misleading, if such statement or omission was made in reliance upon, and in conformity with, information furnished to the Client in writing in connection with the preparation of the Registration Statement by or on behalf of Resolute; or |
(iii) any material breach of Resolute’s agreements, representations, warranties and covenants set forth in Section 2.4 and 5.1 hereof. |
(c) The Client or Resolute (for purpose of this Section 4.2(d), an “Indemnifying Party”) may assume the defense of any suit brought to enforce any Resolute Claim or Client Claim, respectively, and may retain counsel chosen by the Indemnifying Party and approved by the other Party, which approval shall not be unreasonably withheld or delayed. The Indemnifying Party shall advise the other Party that it will assume the defense of the suit and retain counsel within ten (10) days of receipt of the notice of the claim. If the Indemnifying Party assumes the defense of any such suit and retains counsel, the other Party shall bear the fees and expenses of any additional counsel that they retain. If the Indemnifying Party does not assume the defense of any such suit, or if other Party does not approve of counsel chosen by the Indemnifying Party, or if the other Party has been advised that it may have available defenses or claims that are not available to or conflict with those available to the Indemnifying Party, the Indemnifying Party will reimburse any Indemnitee named as defendant in such suit for the reasonable fees and expenses of any counsel that the Indemnitee retains. An Indemnitee shall not settle or confess any claim without the prior written consent of the applicable Client, which consent shall not be unreasonably withheld or delayed. |
(d) An Indemnifying Party’s obligation to provide indemnification under this section is conditioned upon the Indemnifying Party receiving notice of any action brought against an Indemnitee within twenty (20) days after the summons or other first legal process is served. Such notice shall refer to the Person or Persons against whom the action is brought. The failure to provide such notice shall not relieve the Indemnifying Party of any liability that it may have to any Indemnitee except to the extent that the ability of the party entitled to such notice to defend such action has been materially adversely affected by the failure to provide notice. |
(e) The provisions of this section and the parties’ representations and warranties in this Agreement shall remain operative and in full force and effect regardless of any investigation made by or on behalf of any Indemnitee and shall survive the sale and redemption of any Shares made pursuant to subscriptions obtained by Resolute. The indemnification provisions of this section will inure exclusively to the benefit of each person that may be an Indemnitee at any time and their respective successors and assigns (it being intended that such persons be deemed to be third party beneficiaries under this Agreement). |
Section 4.3 of the Distribution Agreement provides that:
Notwithstanding anything in this Agreement to the contrary, except as specifically set forth below:
(a) Neither Party shall be liable for losses, delays, failure, errors, interruption or loss of data occurring directly or indirectly by reason of circumstances beyond its reasonable control, including, without limitation, acts of God; action or inaction of civil or military authority; public enemy; war; terrorism; riot; fire; flood; sabotage; epidemics; labor disputes; civil commotion; interruption, loss or malfunction of utilities, transportation, computer or communications capabilities; insurrection; or elements of nature; |
(b) Neither Party shall be liable for any consequential, special or indirect losses or damages suffered by the other Party, whether or not the likelihood of such losses or damages was known by the Party; |
(c) No affiliate, director, officer, employee, manager, shareholder, partner, agent, counsel or consultant of either Party shall be liable at law or in equity for the obligations of such Party under this Agreement or for any damages suffered by the other Party related to this Agreement; |
(d) There are no third-party beneficiaries of this Agreement; |
(e) Each Party shall have a duty to mitigate damages for which the other Party may become responsible; |
(f) The assets and liabilities of each Fund are separate and distinct from the assets and liabilities of each other Fund, and no Fund shall be liable or shall be charged for any debt, obligation or liability of any other Fund, whether arising under this Agreement or otherwise; and in asserting any rights or claims under this Agreement, Resolute shall look only to the assets and property of the Fund to which Resolute’s rights or claims relate in settlement of such rights or claims; and |
(g) Each Party agrees promptly to notify the other party of the commencement of any litigation or proceeding of which it becomes aware arising out of or in any way connected with the issuance or sale of Shares. |
Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to trustees, officers and controlling persons of the Registrant pursuant to the foregoing or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification
14
against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a trustee, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such trustee, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
Supplemental Limited Indemnification from the Manager
ABA shall indemnify and hold harmless Indemnitee, in his or her individual capacity, from and against any cost, asserted claim, liability or expense, including reasonable legal fees (collectively, “Liability”) based upon or arising out of (i) any duty of ABA under the Management Agreement (including ABA’s failure or omission to perform such duty), and (ii) any liability or claim against Indemnitee arising pursuant to Section 11 of the Securities Act of 1933, as amended, Rule 10b-5 under the Securities Exchange Act of 1934, as amended, and any similar or related federal, state or common law statutes, rules or interpretations. ABA’s indemnification obligations under this Letter Agreement shall be limited to civil and administrative claims or proceedings.
Item 31.
I. Business and Other Connections of Investment Manager
American Beacon Advisors, Inc. (the “Manager”) offers investment management and administrative services to the Registrant. It acts in the same capacity to other investment companies, including those listed below.
Set forth below is information as to any other business, profession, vocation or employment of a substantial nature in which each officer and director of American Beacon Advisors, Inc. is, or at any time during the past two fiscal years has been, engaged for his/her own account or in the capacity of director, officer, employee, partner or trustee.
Name; Current Position with American Beacon Advisors, Inc. |
Other Substantial Business and Connections |
Patrick J. Bartels; Director |
Managing Member, Redan Advisors LLC |
Sonia L. Bates; Assistant Treasurer, Vice President, Tax and Fund Reporting |
Principal Accounting Officer and Treasurer, American Beacon Funds Complex; Vice President, Fund and Tax Reporting, Resolute Investment Services, Inc.; Vice President, Fund and Tax Reporting, Resolute Investment Managers, Inc.; Assistant Treasurer, American Private Equity Management, LLC; Assistant Treasurer, American Beacon Cayman Transformational Innovation Company, Ltd.; Treasurer, American Beacon Cayman Managed Futures Strategy Fund, Ltd.; Treasurer, American Beacon Cayman TargetRisk Company, Ltd.; Treasurer, American Beacon Cayman Trend Company, Ltd. |
Rosemary K. Behan; Senior Vice President, Secretary and General Counsel |
Vice President, Secretary, and Chief Legal Officer, American Beacon Funds Complex; Secretary, Resolute Investment Holdings, LLC; Secretary, Resolute Topco, Inc.; Secretary, Resolute Acquisition, Inc.; Senior Vice President, Secretary, and General Counsel, Resolute Investment Managers, Inc.; Secretary, Resolute Investment Distributors, Inc.; Senior Vice President, Secretary, and General Counsel, Resolute Investment Services, Inc.; Secretary, American Private Equity Management, L.L.C.; Vice President and Secretary, Continuous Capital, LLC; Secretary, American Beacon Cayman Managed Futures Strategy Fund, Ltd.; Secretary, American Beacon Cayman TargetRisk Company, Ltd.; Secretary, American Beacon Cayman Trend Company, Ltd. |
Melinda S. Blackwill; Assistant Treasurer, Vice President and Controller |
Vice President and Controller, Resolute Investment Managers, Inc.; Vice President and Controller, Resolute Investment Services, Inc.; Assistant Treasurer, Continuous Capital, LLC |
Paul B. Cavazos; Senior Vice President and Chief Investment Officer |
Vice President, American Beacon Funds Complex; Vice President, American Private Equity Management, L.L.C. |
Jame Donath; Director |
Chairman, Greenscape Financial Group; Senior Advisor, Orange Grove Bio; President of the Board, 114 Tenants Corp; Co-Founder, Norwood UK Restructuring Dinner |
Erica B. Duncan; Vice President, Marketing |
Vice President, American Beacon Funds Complex; Vice President, Marketing, Resolute Investment Managers, Inc.; Vice President, Marketing, Resolute Investment Services, Inc. |
Richard M. Goldman; Director |
Founder and Managing Partner, Becket Capital; Director, AlphaTrai Asset Management; Independent Corporate Director, Marblegate Acquisition Corporation |
Rebecca L. Harris; Director and President |
President, American Beacon Funds Complex; President and Chief Executive Officer, Resolute Investment Managers, Inc.; President and Chief Executive Officer, Resolute Investment Services, Inc.; Director and Vice President, Continuous Capital, LLC; Director, National Investment Services of America, LLC; Director, RSW Investments Holdings LLC; Director, Shapiro Capital Management LLC; Director, SSI Investment Management LLC |
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Name; Current Position with American Beacon Advisors, Inc. |
Other Substantial Business and Connections |
Melinda G. Heika; Senior Vice President, Treasurer and Chief Financial Officer |
Vice President, American Beacon Funds Complex; Treasurer, Resolute Investment Holdings, LLC; Treasurer, Resolute Topco, Inc.; Treasurer, Resolute Acquisition, Inc.; Senior Vice President and Treasurer, Resolute Investment Managers, Inc.; Senior Vice President and Treasurer, Resolute Investment Services, Inc.; Treasurer, American Private Equity Management, L.L.C.; Treasurer, Continuous Capital, LLC; Director and Vice President, American Beacon Cayman Managed Futures Strategy Fund, Ltd.; Director and Vice President, American Beacon Cayman TargetRisk Company, Ltd.; Director, American Beacon Cayman Multi-Alternatives Company, LTD.; Vice President, American Beacon Cayman Trend Company, Ltd. |
Kirstin Hill; Director |
President & COO, Social Finance |
Terri L. McKinney; Senior Vice President, Enterprise Services |
Vice President, American Beacon Funds Complex; Senior Vice President, Enterprise Services, Resolute Investment Managers, Inc.; Senior Vice President, Enterprise Services, Resolute Investment Services, Inc.; Vice President, Continuous Capital, LLC |
Teresa A. Oxford; Assistant Secretary and Deputy General Counsel |
Assistant Secretary, American Beacon Funds Complex; Assistant Secretary and Deputy General Counsel, Resolute Investment Managers, Inc.; Assistant Secretary and Deputy General Counsel, Resolute Investment Services, Inc.; Assistant Secretary, Resolute Investment Distributors; Assistant Secretary, Continuous Capital, LLC |
Bo Ragsdale; Vice President, Information Technology |
Vice President, Information Technology, Resolute Investment Managers, Inc., Vice President, Information Technology, Resolute Investment Services, Inc. |
Christina E. Sears; Vice President and Chief Compliance Officer |
Chief Compliance Officer and Assistant Secretary, American Beacon Funds Complex; Vice President and Chief Compliance Officer, Resolute Investment Managers, Inc.; Vice President, Resolute Investment Distributors, Inc.; Vice President and Chief Compliance Officer, Resolute Investment Services, Inc.; Chief Compliance Officer, American Private Equity Management, L.L.C.; Vice President, Continuous Capital, LLC; Chief Compliance Officer, RSW Investments Holdings LLC |
Samuel J. Silver; Vice President and Chief Fixed Income Officer |
Vice President, American Beacon Funds Complex |
Claire L. Stervinou; Assistant Treasurer and Corporate Tax Manager |
Assistant Treasurer, Resolute Investment Managers, Inc.; Assistant Treasurer, Resolute Investment Services, Inc. |
Gregory Stumm; Senior Vice President |
Vice President, American Beacon Funds Complex; Senior Vice President, Resolute Investment Managers, Inc.; Senior Vice President, Resolute Investment Services, Inc.; President, Resolute Investment Distributors, Inc. |
The principal address of each of the entities referenced above, other than RSW Investment Holdings LLC, Shapiro Capital Management LLC, SSI Investment Management LLC, and National Investment Services of America, LLC is 220 East Las Colinas Blvd., Suite 1200, Irving, Texas 75039. The principal address of RSW Investment Holdings LLC is 47 Maple Street, Suite 304, Summit, New Jersey 07901. The principal address of Shapiro Capital Management LLC is 3060 Peachtree Road NW #1555, Atlanta, Georgia 30305. The principal address of SSI Investment Management LLC is 2211 Avenue of the Stars, Suite 2050, Los Angeles, California 90067. The principal address of National Investment Services of America, LLC is 777 E. Wisconsin Avenue, Suite 2350, Milwaukee, Wisconsin 53202.
II. Business and Other Connections of Investment Advisers
The investment advisers listed below provide investment advisory services to the Trust.
American Beacon Advisors, Inc., 220 East Las Colinas Blvd., Suite 1200, Irving, TX 75039.
abrdn Investments Limited (“aIL”) is a registered investment adviser and is an investment sub-adviser for the American Beacon Developing World Income Fund. The principal address of aIL is 10 Queens Terrace, Aberdeen, UK, AB10 1XL. Information as to the officers and directors of abrdn is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 162309), and is incorporated herein by reference.
AHL Partners LLP (“AHL”) is a registered investment adviser and is an investment sub-advisor for the American Beacon AHL Managed Futures Strategy Fund, American Beacon AHL Multi-Alternatives Fund, and American Beacon AHL TargetRisk Fund. The principal address of AHL is 2 Swan Lane, London, UK EC4R 3AD. Information as to the officers and directors of AHL is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 167882), and is incorporated herein by reference.
American Century Investment Management, Inc. (“American Century”) is a registered investment adviser and is an investment sub-advisor for the American Beacon International Equity Fund. The principal address for American Century is 4500 Main Street, Kansas City, MO 64111. Information as to the Officers and Directors of American Century is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 105778), and is incorporated herein by reference.
ARK Investment Management LLC (“ARK”) is a registered investment adviser and is an investment sub-advisor for the American Beacon ARK Transformational Innovation Fund. The principal address for ARK is 200 Central Avenue, Suite 1850, St. Petersburg, FL 33701. ARK was formed in June
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2013 and registered as an investment adviser with the U.S. Securities and Exchange Commission in January 2014. Information as to the Officers and Directors of ARK is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 169525), and is incorporated herein by reference.
Barrow, Hanley, Mewhinney & Strauss, LLC (“Barrow”) is a registered investment adviser and is an investment sub-advisor for the American Beacon Balanced Fund, American Beacon Large Cap Value Fund and American Beacon Small Cap Value Fund. The principal business address of Barrow is 2200 Ross Avenue, 31st Floor, Dallas, TX 75201-2761. Information as to the officers and directors of Barrow is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 105519), and is incorporated herein by reference.
Brandywine Global Investment Management, LLC (“Brandywine”) is a registered investment adviser and is an investment sub-advisor for the American Beacon Small Cap Value Fund. The principal address of Brandywine is 1735 Market Street, Suite 1800, Philadelphia, PA 19103. Information as to the officers and directors of Brandywine is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 110783), and is incorporated herein by reference.
Bridgeway Capital Management, LLC (“Bridgeway”) is a registered investment adviser and is an investment sub-advisor for the American Beacon Bridgeway Large Cap Value Fund and the American Beacon Bridgeway Large Cap Growth Fund. The principal address of Bridgeway is 20 Greenway Plaza, Suite 450, Houston, TX 77046. Information as to the officers and directors of Bridgeway is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 111441), and is incorporated herein by reference.
Causeway Capital Management LLC (“Causeway”), a Delaware limited liability company, is a registered investment adviser and is an investment sub-advisor for the American Beacon International Equity Fund. The principal address of Causeway is 11111 Santa Monica Boulevard, 15th Floor, Los Angeles, CA 90025. Information as to the officers and directors of Causeway is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 113308), and is incorporated herein by reference.
DePrince, Race & Zollo, Inc. (“DRZ”), a Florida corporation, is a registered investment adviser and is an investment sub-advisor for the American Beacon Small Cap Value Fund. The principal office of DRZ is 250 Park Avenue South, Winter Park, FL 32789. Information as to the officers and directors of DRZ is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 112099), and is incorporated herein by reference.
EAM Global Investors LLC (“EAM”), is a registered investment adviser and is an investment sub-advisor for the American Beacon EAM International Small Cap Fund. The principal address of EAM is 215 Highway 101, Suite 216, Solana Beach, CA 92075. Information as to the officers and directors of EAM is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 170870), and is incorporated herein by reference.
First Eagle Alternative Credit, LLC (“First Eagle”), is a registered investment adviser and is an investment sub-advisor for the American Beacon FEAC Floating Rate Income Fund. The principal address of First Eagle is 500 Boylston Street, Suite 1250, Boston, MA 02116. Information as to the officers and directors of First Eagle is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 150900), and is incorporated herein by reference.
Garcia Hamilton & Associates, L.P. (“Garcia Hamilton”) is a registered investment adviser and is the investment sub-adviser for the American Beacon Garcia Hamilton Quality Bond Fund. The principal address of Garcia Hamilton is 1401 McKinney Street, Suite 1600, Houston, TX 77010. Information as to the officers and directors of Garcia Hamilton is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 108017), and is incorporated herein by reference.
Global Evolution USA, LLC (“Global Evolution”) is a registered investment adviser and is an investment sub-advisor for the American Beacon Developing World Income Fund. The principal address of Global Evolution is 250 Park Avenue, 15th floor, New York, NY 10177, United States. Global Evolution’s parent company is Global Evolution Financial ApS and is located at Buen 11, 2nd floor, DK-6000 Kolding, Denmark. Information as to the officers and directors of Global Evolution is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 161677), and is incorporated herein by reference.
Hotchkis and Wiley Capital Management LLC (“Hotchkis”) is a registered investment adviser and is an investment sub-advisor for the American Beacon Balanced Fund, American Beacon Large Cap Value Fund, and American Beacon Small Cap Value Fund. The principal address of Hotchkis is 601 South Figueroa Street, 39th Floor, Los Angeles, CA 90017-5439. Information as to the officers and directors of Hotchkis is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 114649), and is incorporated herein by reference.
Lazard Asset Management LLC (“Lazard”) is a registered investment adviser and is an investment sub-advisor for the American Beacon International Equity Fund. The principal address of Lazard is 30 Rockefeller Plaza, 55th Floor, New York, NY 10112. Information as to the officers and directors of Lazard is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 122836), and is incorporated herein by reference.
Massachusetts Financial Services Company (“MFS”) is a registered investment adviser and is an investment sub-adviser for the American Beacon Large Cap Value Fund. The principal address of MFS is 111 Huntington Avenue, Boston, MA 02199. MFS is a subsidiary of Sun Life of Canada (U.S.) Financial Services Holdings Inc., which in turn is an indirect majority-owned subsidiary of Sun Life Financial, Inc. (a diversified financial services company), located at Sun Life Financial Centre, 150 King Street West, Toronto, Ontario, Canada. Information as to the officers and directors of MFS is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 110045), and is incorporated herein by reference.
National Investment Services of America, LLC (“NIS”) is a registered investment adviser and is an investment sub-advisor for the American Beacon NIS Core Plus Bond Fund. The principal address of NIS is 777 E. Wisconsin Avenue, Suite 2350, Milwaukee, WI 53202. NIS is a majority-owned subsidiary of Resolute Investment Managers, Inc., which is a subsidiary of Resolute Topco, Inc. (“Topco”). Topco is owned primarily by various institutional investment funds that are managed by financial institutions and other investment advisory firms. No owner of Topco owns 25% or more
17
of the outstanding equity or voting interests of Topco. Information as to the officers and directors of NIS is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 307169), and is incorporated herein by reference.
Newton Investment Management North America, LLC (“NIMNA”) is a registered investment adviser and is an investment sub-advisor for the American Beacon Small Cap Value Fund. NIMNA is an indirect wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon Corp”). The principal address of NIMNA is BNY Mellon Center, 201 Washington Street, Boston, MA 02108. Information as to the officers and directors of NIMNA is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 312937), and is incorporated herein by reference.
Shapiro Capital Management LLC (“Shapiro”) is a registered investment adviser and is an investment subadvisor for the American Beacon Shapiro SMID Cap Equity Fund and American Beacon Shapiro Equity Opportunities Fund. The principal address of Shapiro is 3060 Peachtree Road NW #1555, Atlanta, GA 30305. Shapiro is a majority-owned subsidiary of Resolute Investment Managers, Inc., which is a subsidiary of Resolute Topco, Inc. (“Topco”). Topco is owned primarily by various institutional investment funds that are managed by financial institutions and other investment advisory firms. No owner of Topco owns 25% or more of the outstanding equity or voting interests of Topco. Shapiro was founded in 1990. Information as to the Officers and Directors of Shapiro is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 105581), and is incorporated herein by reference.
SSI Investment Management LLC (“SSI”) is a registered investment adviser and is the investment sub-advisor for the American Beacon SSI Alternative Income Fund. The principal address of SSI is 2211 Avenue of the Stars, Suite 2050, Los Angeles, CA 90067. SSI is a majority-owned subsidiary of Resolute Investment Managers, Inc., which is a subsidiary of Resolute Topco, Inc. (“Topco”). Topco is owned primarily by various institutional investment funds that are managed by financial institutions and other investment advisory firms. No owner of Topco owns 25% or more of the outstanding equity or voting interests of Topco. Information as to the officers and directors of SSI is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 104889), and is incorporated herein by reference.
Stephens Investment Management Group, LLC (“SIMG”) is a registered investment adviser and is the investment sub-advisor for the American Beacon Stephens Mid-Cap Growth Fund and American Beacon Stephens Small Cap Growth Fund. The principal address of SIMG and Stephens Inc. is 111 Center Street, Little Rock, AK 72201. Information as to the officers and directors of SIMG is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 136369), and is incorporated herein by reference.
Strategic Income Management, LLC (“SiM”) is a registered investment adviser and is the investment sub-advisor for the American Beacon SiM High Yield Opportunities Fund. The principal address of SiM is 1200 Westlake Avenue North, Suite 713, Seattle, WA 98109. Information as to the officers and directors of SiM is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 151956), and is incorporated herein by reference.
The London Company Of Virginia, LLC (“London Company”) is a registered investment adviser and is the investment sub-adviser for the American Beacon The London Company Income Equity Fund. The principal place of business address of London Company is 1800 Bayberry Court, Suite 301, Richmond, VA 23226. Information as to the officers and directors of London Company is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 106654), and is incorporated herein by reference.
TwentyFour Asset Management (US) LP (“TwentyFour”) is a registered investment adviser and an indirect wholly owned subsidiary of Vontobel Holding AG and is the investment sub-advisor for the American Beacon TwentyFour Strategic Income Fund and the American Beacon TwentyFour Sustainable Short Term Bond Fund. The principal address of TwentyFour is 66 Hudson Boulevard, 34th Floor, Suite 3401, New York, NY 10001. Information as to the officers and directors of TwentyFour is included in its Form ADV, as filed with the Securities and Exchange Commission (CRD number 285791), and is incorporated herein by reference.
Item 32. Principal Underwriter
(a) Resolute Investment Distributors, Inc. (the “Distributor”) serves as principal underwriter for the following investment companies registered under the Investment Company Act of 1940, as amended:
1 | American Beacon Funds |
2 | American Beacon Select Funds - American Beacon U.S. Government Money Market Select Fund |
(b) The following are the Officers and Managers of the Distributor, the Registrant’s underwriter. The Distributor’s main business address is 220 E. Las Colinas Blvd, STE 1200, Irving, TX 75039.
Name |
Address |
Position with Underwriter |
Position with Registrant |
Gregory Stumm |
220 E. Las Colinas Blvd, STE 1200, Irving, TX 75039 |
President |
Vice President |
Rosemary K. Behan |
220 E. Las Colinas Blvd, STE 1200, Irving, TX 75039 |
Secretary |
Vice President, Chief Legal Officer and Secretary |
Christina E. Sears |
220 E. Las Colinas Blvd, STE 1200, Irving, TX 75039 |
Vice President |
Chief Compliance Officer and Assistant Secretary |
Teresa A. Oxford |
220 E. Las Colinas Blvd, STE 1200, Irving, TX 75039 |
Assistant Secretary |
Assistant Secretary |
(c) Not applicable.
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Item 33. Location of Accounts and Records
The books and other documents required by Section 31(a) under the Investment Company Act of 1940 are maintained in the physical possession of 1) the Trust’s custodian and fund accounting agent at State Street Bank and Trust Company, One Congress Street, Suite 1, Boston, Massachusetts 02114-2016; 2) the Manager at American Beacon Advisors, Inc., 220 East Las Colinas Blvd., Suite 1200, Irving, Texas 75039; 3) the Trust’s transfer agent, SS&C GIDS, Inc., 330 West 9th St., Kansas City, Missouri 64105; 4) Mastercraft, 3021 Wichita Court, Fort Worth, Texas 76140; or 5) the Trust’s investment advisers at the addresses listed in Item 31 above.
Item 34. Management Services
Not applicable.
Item 35. Undertakings
Not applicable.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended (“1933 Act”), and the Investment Company Act of 1940, as amended, the Registrant represents that this Amendment meets all the requirements for effectiveness pursuant to Rule 485(b) under the 1933 Act and has duly caused this Post-Effective Amendment No. 413 to its Registration Statement on Form N-1A to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Irving and the State of Texas, on April 29, 2024.
AMERICAN BEACON FUNDS
By: | /s/ Jeffrey K. Ringdahl | |
Jeffrey K. Ringdahl | ||
President |
Pursuant to the requirements of the 1933 Act, this Post-Effective Amendment No. 413 to the Registration Statement has been signed below by the following persons in the capacities and on the dates indicated.
Signature | Title | Date | |
/s/ Jeffrey K. Ringdahl | President (Principal Executive Officer) | April 29, 2024 | |
Jeffrey K. Ringdahl | |||
/s/ Sonia L. Bates | Treasurer (Principal Financial Officer and Principal Accounting Officer) | April 29, 2024 | |
Sonia L. Bates | |||
Gilbert G. Alvarado* | Trustee | April 29, 2024 | |
Gilbert G. Alvarado | |||
Joseph B. Armes* | Trustee | April 29, 2024 | |
Joseph B. Armes | |||
Gerard J. Arpey* | Trustee | April 29, 2024 | |
Gerard J. Arpey | |||
Brenda A. Cline* | Chair and Trustee | April 29, 2024 | |
Brenda A. Cline | |||
Eugene J. Duffy* | Trustee | April 29, 2024 | |
Eugene J. Duffy | |||
Claudia A. Holz* | Trustee | April 29, 2024 | |
Claudia A. Holz | |||
Douglas A. Lindgren* | Trustee | April 29, 2024 | |
Douglas A. Lindgren | |||
Barbara J. McKenna* | Trustee | April 29, 2024 | |
Barbara J. McKenna | |||
* | By: | /s/ Rosemary K. Behan | |
Rosemary K. Behan | |||
Attorney-In-Fact |
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EXHIBIT INDEX
Type |
Description |
99.(d)(1)(A)(iv) |
|
99.(d)(1)(A)(v) |
|
99.(d)(2)(A)(ii) |
|
99.(d)(2)(B) |
|
99.(d)(2)(D)(ii) |
|
99.(d)(2)(G) |
|
99.(d)(2)(Q)(i) |
|
99.(d)(2)(Q)(ii) |
|
99.(d)(2)(R) |
|
99.(d)(2)(X) |
|
99.(h)(10)(D) |
|
99.(h)(10)(E) |
|
99.(i) |
|
99.(j) |
|
99.(p)(11) |
Code of Ethics for Bridgeway Capital Management, Inc., dated July 3, 2023 |
99.(p)(14) |
Code of Ethics for AHL Partners LLP, amended October 11, 2023 |
21