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American Beacon |
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SUMMARY PROSPECTUS January 18, 2019 (as amended February 1, 2019) |
Before you invest, you may want to review the Fund's prospectus and statement of additional information, which contain more
information about the Fund and its risks. The current prospectus and statement of additional information dated January 18, 2019, are incorporated by reference into this summary prospectus. You can find the Fund's prospectus, statement of additional
information and other information about the Fund online at
www.americanbeaconfunds.com/resource_center/MutualFundForms.aspx. You can also get this information at no cost by calling
800-658-5811 or by sending an email request to americanbeaconfunds@ambeacon.com.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by going to www.americanbeaconfunds.com and clicking on ‘‘Quick Links'' and then ‘‘Register for E-Delivery."
You may elect to receive all future reports in paper free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by calling 1-800-658-5811, option 1, or you may directly inform your financial intermediary of your wish. A notice that will be mailed to you each time a report is posted will also include instructions for informing the Fund that you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the American Beacon Funds Complex or your financial intermediary, as applicable.
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Share Class | Y: TOVYX | Institutional: TOVIX | Investor: TIVFX |
Investment Objective
The Fund's investment objective is long-term capital appreciation.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. More information is available from your financial professional and in "Choosing Your Share Class" on page 13 of the Prospectus.
Shareholder Fees (fees paid directly from your investment)
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Share Class |
Y |
Institutional |
Investor |
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Maximum sales charge imposed on purchases (as a percentage of offering price) |
None |
None |
None |
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Maximum deferred sales charge (as a percentage of the lower of original offering price or redemption proceeds) |
None |
None |
None |
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Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) |
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Share Class |
Y |
Institutional |
Investor |
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Management Fees |
0.75 |
% |
0.75 |
% |
0.75 |
% |
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Distribution (12b-1) Fees |
0.00 |
% |
0.00 |
% |
0.00 |
% |
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Other Expenses1 |
0.22 |
% |
0.12 |
% |
0.49 |
% |
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Acquired Fund Fees and Expenses1 |
0.01 |
% |
0.01 |
% |
0.01 |
% |
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Total Annual Fund Operating Expenses |
0.98 |
% |
0.88 |
% |
1.25 |
% |
1 Other Expenses and Acquired Fund Fees and Expenses are based on estimated expenses for the current fiscal year.
Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, whether you redeem or hold your shares, your costs would be:
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Share Class |
1 Year |
3 Years |
5 Years |
10 Years |
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Y |
$100 |
$312 |
$542 |
$1,201 |
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Institutional |
$90 |
$281 |
$488 |
$1,084 |
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Investor |
$127 |
$397 |
$686 |
$1,511 |
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TIV02012019 |
American Beacon Tocqueville International Value Fund - Summary Prospectus |
1 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or ‘‘turns over'' its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual Fund operating expenses or in the Example, affect the Fund's performance. The Fund's portfolio turnover rate for the Fund's last fiscal year was 25% of the average value of its portfolio.
Principal Investment Strategies
Under normal circumstances, the Fund will invest at least 65% of its total assets in the equity securities of companies based in at least three different countries located outside the United States, which may include developed and emerging market countries. The Fund may invest in international and U.S. companies representing a broad spectrum of market capitalizations, including large cap companies having market values of $10 billion or more, mid cap companies having market values between $2 billion and $10 billion and small cap companies having market values of less than $2 billion. The Fund may invest principally in the common stock, preferred stock, American Depositary Receipts (ADRs), and convertible securities of value companies, although the Fund also may invest in growth companies. The Fund's Sub-Advisor, Tocqueville Asset Management L.P. ("sub-advisor"), may hedge the Fund's foreign currency exposure by selling foreign currency forward contracts.
The investment strategy of the Fund is value oriented and contrarian. The Fund seeks to invest in companies that have good long-term business fundamentals but are temporarily out of favor with investors, and hence have a market value lower than their intrinsic value. The fundamental research-based value orientation of the sub-advisor helps it identify companies believed to have good businesses. The sub-advisor's contrarian orientation enables the purchase of those companies at what the sub-advisor believes to be attractive prices. The Fund may have significant exposure to the Industrials sector. However, as the sector composition of the Fund's portfolio changes over time, the Fund's exposure to the Industrials sector may be lower at a future date, and the Fund's exposure to other market sectors may be higher.
Value oriented means that the sub-advisor seeks to invest in companies that are selling at a discount to their intrinsic value, and where business fundamentals are improving or expected to improve. In assessing intrinsic value, the sub-advisor's judgments will be based on a comparison of a company's stock market value with various financial parameters, including historical and projected cash flow, book earnings, and net asset value.
Contrarian means that the sub-advisor seeks investment opportunities in stocks that are out of favor with investors. The sub-advisor considers a stock to be out of favor when its price has declined significantly or has lagged the relevant market index for an extended period of time and the consensus among investors does not expect improvement.
In general, the sub-advisor acquires investment ideas by identifying companies whose stock prices are down, or have lagged the market. The sub-advisor then analyzes the quality of their business franchise and long-term fundamentals and makes a judgment regarding their intrinsic value. Alternatively, the sub-advisor may identify companies with strong long-term business fundamentals and then wait for them to fall out of favor with investors in order to buy them at a discount to intrinsic value.
The sub-advisor will purchase stocks for the Fund's portfolio when they meet the above criteria and when the sub-sdvisor believes that they have a limited risk of further decline. The sub-advisor will sell stocks when they are no longer considered to be good values.
The Fund may also invest cash balances in other investment companies, including money market funds, and may purchase and sell futures contracts to gain market exposure on cash balances or reduce market exposure in anticipation of liquidity needs. The Fund may lend its securities to broker-dealers and other institutions to earn additional income.
Principal Risks
There is no assurance that the Fund will achieve its investment objectives and you could lose part or all of your investment in the Fund. The Fund is not designed for investors who need an assured level of income and is intended to be a long-term investment. The Fund is not a complete investment program and may not be appropriate for all investors. Investors should carefully consider their own investment goals and risk tolerance before investing in the Fund. The principal risks of investing in the Fund are:
Allocation Risk
The sub-advisor's judgments about, and allocations among, strategies, asset classes and market exposures may adversely affect
the Fund's performance.
Counterparty Risk
The Fund is subject to the risk that a party or participant to a transaction, such as a broker or derivative counterparty,
will be unwilling or unable to satisfy its obligation to make timely principal, interest or settlement payments or to otherwise
honor its obligations to the Fund.
Currency Risk
The Fund may have exposure to foreign currencies by making direct investments in non-U.S. currencies or in securities denominated
in non-U.S. currencies, or by purchasing or selling forward currency exchange contracts in non-U.S. currencies. Foreign currencies
may decline in value relative to the U.S. dollar and other currencies and thereby affect the Fund's investments in foreign
(non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to,
foreign (non-U.S.) currencies. Not all forward contracts require a counterparty to post collateral, which may expose the Fund
to greater losses in the event of a default by a counterparty.
Cybersecurity and Operational Risk
The Fund and its service providers, and shareholders' ability to transact with the Fund, may be negatively impacted due to
operational risks arising from, among other problems, human errors, systems and technology disruptions or failures, or cybersecurity
incidents. Cybersecurity incidents may allow an unauthorized party to gain access to Fund assets, customer data, or proprietary
information, or cause the Fund or its service providers, as well as the securities trading venues and their service providers,
to suffer data corruption or lose operational functionality. It is not possible for the Fund or its service providers to
identify all of the operational risks that may affect the Fund or to develop processes and controls to completely eliminate
or mitigate their occurrence or effects. Most issuers in which the Fund invests are heavily dependent on computers for data
storage and operations, and require ready access to the internet to conduct their business. Thus, cybersecurity incidents
could also affect issuers of securities in which the Fund invests, leading to significant loss of value.
Emerging Markets Risk
When investing in emerging markets, the risks of investing in foreign securities discussed below are heightened. Emerging
markets are generally smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other
developed markets. There are also risks of: greater political uncertainties; an economy's dependence on revenues from particular
commodities or on international aid or development assistance; currency transfer restrictions; a limited number of potential
buyers for such securities resulting in increased volatility and limited liquidity for emerging market securities; trading
suspensions; and delays and disruptions in securities settlement procedures.
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American Beacon Tocqueville International Value Fund - Summary Prospectus |
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Equity Investments Risk
Equity securities are subject to investment risk and market risk. The Fund's investments in equity securities may include
common stocks, preferred stocks, securities convertible into or exchangeable for common stocks, and depositary receipts. Such
investments may expose the Fund to additional risks.
Common Stock. 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.
Convertible Securities. Convertible securities are subject to the risk that the credit standing of the issuer may have an effect on the convertible securities' investment value. Convertible securities are also sensitive to movements in interest rates.
Depositary Receipts. Depositary receipts are subject to certain of the risks associated with investing directly in foreign securities, including, but not limited to: currency exchange rate fluctuations, political and financial instability in the home country of a particular depositary receipt or foreign stock, less liquidity and more volatility, less government regulation and supervision and delays in transaction settlement.
Preferred Stock. Preferred stocks are sensitive to movements in interest rates. Preferred stocks may be less liquid than common stocks and, unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred stocks generally are payable at the discretion of an issuer and after required payments to bond holders.
Foreign Investing Risk
Non-U.S. investments carry potential risks not associated with U.S. investments. Such risks include, but are not limited
to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity, (4) lack of uniform
accounting, auditing and financial reporting standards, (5) increased volatility, (6) different government regulation and
supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign
markets.
Futures Contracts Risk
Futures contracts are derivative instruments 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
that it would not be subject to if it invested directly in the securities underlying those derivatives. Futures contracts
may experience potentially dramatic price changes (losses) and imperfect correlation between the price of the contract and
the underlying security or index, 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).
Growth Companies Risk
Growth companies are expected to increase their earnings at a certain rate. When these expectations are not met, the prices
of these stocks may go down, even if earnings showed an absolute increase. Growth company stocks also may lack the dividend
yield that can cushion stock price declines in market downturns.
Hedging Risk
If the Fund uses a hedging instrument at the wrong time or judges the market conditions incorrectly, or the hedged instrument
does not correlate to the risk sought to be hedged, the hedge might be unsuccessful, reduce the Fund's return, or create a
loss. In addition, hedges, even when successful in mitigating risk, may not prevent the Fund from experiencing losses on its
investments, and therefore the use of hedging strategies may reduce the Fund's return, or create a loss.
Investment Risk
An investment in the Fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. When you sell your shares of the Fund, they could be worth less than what you
paid for them. Therefore, you may lose money by investing in the Fund.
Issuer Risk
The value of, and/or the return generated by, a security may decline for a number of reasons which directly relate to the
issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services, as well
as the historical and prospective earnings of the issuer and the value of its assets.
Large Capitalization Companies Risk
The securities of large market capitalization companies may underperform other segments of the market because such companies
may be less responsive to competitive challenges and opportunities and may be unable to attain the high growth rates of successful
smaller companies, especially during periods of economic expansion.
Market Risk
The Fund is subject to the risk that the securities markets will move down, sometimes rapidly and unpredictably based on
overall economic conditions and other factors. The value of a security may decline due to general market conditions which
are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the
general outlook for corporate earnings, changes in interest or currency rates or adverse investment sentiment generally. Changes
in the financial condition of a single issuer can impact a market as a whole. A rise in protectionist trade policies, and
the possibility of changes to some international trade agreements, could affect the economies of many nations in ways that
cannot necessarily be foreseen at the present time.
Market Timing Risk
Because the Fund invests in foreign securities, or it has exposure to foreign securities through the derivatives it holds,
it is particularly subject to the risk of market timing activities. Frequent trading by Fund shareholders poses risks to other
shareholders in the Fund, including (i) the dilution of the Fund's NAV, (ii) an increase in the Fund's expenses, and (iii)
interference with the portfolio manager's ability to execute efficient investment strategies. Because of specific types of
securities in which the Fund may invest, it could be subject to the risk of market timing activities by shareholders.
Other Investment Companies Risk
The Fund may invest in shares of other registered investment companies, including money market funds. To the extent that
the Fund invests in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses charged
by those investment companies in addition to the Fund's direct fees and expenses and will be subject to the risks associated
with investments in those companies. For example, money market funds are subject to interest rate risk, credit risk, and
market risk.
Sector Risk
When the Fund focuses its investments in certain sectors of the economy, its performance may be driven largely by sector
performance and could fluctuate more widely than if the Fund were invested more evenly across sectors.
Industrials Sector Risk. The industrials sector includes companies engaged in the construction and engineering industry, machinery, energy, transportation, professional services, aerospace and defense industries. Companies in the industrials sector may be adversely affected by changes in government regulation, world events and economic conditions. In addition, companies in the industrials sector may be adversely affected by environmental damages, product liability claims and changes in commodity prices and exchange rates.
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American Beacon Tocqueville International Value Fund - Summary Prospectus |
3 |
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Securities Lending Risk
To the extent the Fund lends its securities, it may be subject to the following risks: i) borrowers of the Fund's securities
typically provide collateral in the form of cash that is reinvested in securities, ii) the securities in which the collateral
is invested may not perform sufficiently to cover the return collateral payments owed to borrowers, iii) delays may occur
in the recovery of securities from borrowers, which could interfere with the Fund's ability to vote proxies or to settle transactions,
and iv) there is the risk of possible loss of rights in the collateral should the borrower fail financially.
Securities Selection Risk
Securities selected by the sub-advisor for the Fund may not perform to expectations. The sub-advisor's investment models
may rely in part on data derived from third parties and may not perform as intended. This could result in the Fund's underperformance
compared to other funds with similar investment objectives.
Segregated Assets Risk
In connection with certain transactions that may give rise to future payment obligations, including investments in derivatives,
the Fund may be required to maintain a segregated amount of, or otherwise earmark, cash or liquid securities to cover the
obligation. Segregated assets cannot be sold while the position they are covering is outstanding, unless they are replaced
with other assets of equal value. The need to maintain cash or other liquid securities in segregated accounts could limit
the Fund's ability to pursue other opportunities as they arise.
Small and Mid-Capitalization Companies Risk
Investing in the securities of small and mid-capitalization companies involves greater risk and the possibility of greater
price volatility than investing in larger capitalization and more established companies. Since small and mid-capitalization
companies may have narrower commercial markets and more limited operating history, product lines, and managerial and financial
resources than larger, more established companies, the securities of these companies may lack sufficient market liquidity,
and they can be particularly sensitive to expected changes in interest rates, borrowing costs and earnings. In general, these
risks are greater for small-capitalization companies than for mid-capitalization companies.
Valuation Risk
The Fund may value certain assets at a price different from the price at which they can be sold. This risk may be especially
pronounced for investments that are illiquid or which may become illiquid.
Value Stocks Risk
Value stocks are subject to the risk that their intrinsic value may never be realized by the market or that their prices
may decline. The Fund's investments in value stocks seek to limit potential downside price risk over time; however, value
stock prices still may decline substantially. In addition, the Fund may produce more modest gains as a trade-off for this
potentially lower risk. The Fund's investment in value stocks could cause the Fund to underperform funds that use a growth
or non-value approach to investing or have a broader investment style.
Fund Performance
The bar chart and table below provide an indication of risk by showing how the Fund's performance has varied from year to year. The table shows how the Fund's performance compares to a broad-based market index, which is the Fund's benchmark index and was the benchmark index of the Fund's predecessor.
The Fund did not commence operations prior to the date hereof. The Fund acquired The Tocqueville International Value Fund, a series of The Tocqueville Trust, in a reorganization that closed on January 18, 2019. In connection with that reorganization, the Investor Class shares of the Fund have adopted the performance history and financial statements of the Fund's predecessor. The chart and the table below show the performance of the Fund's Investor Class shares for all periods. Performance information of Y Class and Institutional Class shares of the Fund is not provided because these share classes of the Fund had not commenced operations prior to the date of this Prospectus. You may obtain updated performance information on the Fund's website at www.americanbeaconfunds.com. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
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Calendar year total returns for Investor Class Shares. Year Ended 12/31 |
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Highest Quarterly Return: Lowest Quarterly Return: |
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1 Year |
5 Years |
10 Years |
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Investor Class |
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Returns Before Taxes |
(19.89)% |
1.09% |
7.53% |
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Returns After Taxes on Distributions |
(19.94)% |
0.61% |
7.29% |
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Returns After Taxes on Distributions and Sales of Fund Shares |
(11.39)% |
0.97% |
6.35% |
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1 Year |
5 Years |
10 Years |
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Index (Reflects no deduction for fees, expenses or taxes) |
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MSCI® EAFE Index (Reflects no deductions for fees, expenses or taxes) |
(13.79)% |
0.53% |
6.32% |
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local income taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The return after taxes on distributions and sale of Fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period. If you are a tax-exempt entity or hold your Fund shares through a tax-deferred arrangement, such as an individual retirement account ("IRA") or a 401(k) plan, the after-tax returns do not apply to your situation. After-tax returns are shown only for Investor Class shares; after-tax returns for other share classes will vary.
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4 |
American Beacon Tocqueville International Value Fund - Summary Prospectus |
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Management
The Manager
The Fund has retained American Beacon Advisors, Inc. to serve as its Manager.
Sub-Advisor
The Fund's investment sub-advisor is Tocqueville Asset Management L.P.
Portfolio Manager
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Tocqueville Asset Management L.P. |
James E. Hunt |
Purchase and Sale of Fund Shares
You may buy or sell shares of the Fund through a direct mutual fund account, a retirement account, an investment professional or another financial intermediary. As a direct mutual fund account shareholder, you may buy or sell shares in various ways:
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Internet |
www.americanbeaconfunds.com |
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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) |
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American Beacon Funds P.O. Box 219643 Kansas City, MO 64121-9643 |
Overnight Delivery: American Beacon Funds c/o DST Asset Manager Solutions, Inc. 330 West 9th Street Kansas City, MO 64105 |
You may purchase or redeem shares of the Fund on any day the New York Stock Exchange (NYSE) is open, at the Fund's NAV per share next calculated after your order is received in proper form.
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New Account |
Existing Account |
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Share Class |
Minimum Initial Investment Amount |
Purchase/Redemption Minimum by Check/ACH/Exchange |
Purchase/Redemption Minimum by Wire |
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Investor |
$2,500 |
$50 |
$250 |
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Y |
$100,000 |
$50 |
None |
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Institutional |
$250,000 |
$50 |
None |
Tax Information
Dividends and other distributions, if any, that you receive from the Fund are subject to federal income tax and may also be subject to state and local income taxes, unless you are a tax-exempt entity or your account is tax-deferred, such as an individual retirement account or a 401(k) plan (in which case you may be taxed later, upon the withdrawal of your investment from such account or plan).
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and the Fund's distributor or the Manager may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial adviser to recommend the Fund over another investment. Ask your individual financial adviser or visit your financial intermediary's website for more information.
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American Beacon Tocqueville International Value Fund - Summary Prospectus |
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