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American Beacon
International Equity Fund
SM
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Ticker Symbol:
A: AIEAX
C: AILCX
Y: ABEYX
Advisor: AAISX
Institutional: AAIEX
Investor: AAIPX
Retirement: ABIRX
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SUMMARY PROSPECTUS
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FEBRUARY 28, 2013
(supplemented June 3, 2013)
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Before you invest, you may want to review the Funds 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 February 28, 2013 and most recently supplemented June 3, 2013, are incorporated by reference into this summary prospectus. You can find the Funds 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.
Investment Objective
The Funds 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. You may qualify for sales discounts if you and your eligible family members invest, or agree to invest in the future, at least $50,000 in the A Class shares of the American Beacon Funds. More information about these and other discounts is available from your financial professional and in Choosing Your Share Class on page 86 of the Prospectus and Additional Purchase and Sale Information for A Class Shares on page 100 of the statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
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Share classes
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A
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C
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Y
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Advisor
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Institutional
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Investor
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Retirement
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Maximum sales charge imposed on purchases (as a percentage of offering price)
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5.75%
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None
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None
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None
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None
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None
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None
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Maximum deferred sales charge load (as a percentage of the lower of original offering price or redemption proceeds)
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None
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1.00%
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None
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None
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None
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None
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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 classes
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A
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C
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Y
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Advisor
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Institutional
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Investor
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Retirement
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Management fees
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0.32%
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0.32%
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0.32%
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0.32%
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0.32%
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0.32%
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0.32%
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Distribution and/or service (12b-1) fees
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0.25%
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1.00%
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0.00%
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0.25%
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0.00%
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0.00%
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0.50%
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Other expenses
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0.72%
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0.80%
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0.48%
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0.74%
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0.40%
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0.77%
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5.58%
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Acquired Fund Fees and Expenses
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0.01%
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0.01%
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0.01%
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0.01%
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0.01%
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0.01%
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0.01%
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Total annual fund operating expenses
1
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1.30%
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2.13%
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0.81%
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1.32%
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0.73%
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1.10%
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6.41%
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Expense Reduction and Reimbursement
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0.04%
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0.13%
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0.07%
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4.93%
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Total annual fund operating expenses after expense
reduction and reimbursement
2
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1.26%
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2.00%
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1.25%
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1.48%
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1
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The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses to average net assets provided in the Funds Financial Highlights table, which reflects the operating expenses of the Fund and does not include Acquired Fund Fees and Expenses.
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2
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The Manager has contractually agreed to reduce and/or reimburse the A Class, C Class Advisor Class and Retirement Class of the Fund for Other Expenses, as applicable, through February 28, 2014 to the extent that Total Annual Fund Operating Expenses exceed 1.25% for the A Class, 1.99% for the C Class, 1.24% for the Advisor Class and 1.47% for the Retirement Class (excluding taxes, brokerage commissions, acquired fund fees and expenses and other extraordinary expenses such as litigation). The contractual expense arrangement can be changed by approval of a majority of the Funds Board of Trustees. The Manager can be reimbursed by the Fund for any contractual or voluntary fee reductions or expense reimbursements if reimbursement to the Manager (a) occurs within three years after the Managers own reduction or reimbursement and (b) does not cause the Total Annual Fund Operating Expenses of a class to exceed the percentage limit
contractually agreed.
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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 $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
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Share classes
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1 year
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3 years
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5 years
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10 years
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A
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$
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696
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$
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959
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$
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1,242
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$
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2,048
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C
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$
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303
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$
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655
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$
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1,133
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$
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2,452
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Y
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$
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83
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$
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259
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$
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450
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$
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1,003
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Advisor
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$
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127
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$
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411
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$
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716
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$
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1,583
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Institutional
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$
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75
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$
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234
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$
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407
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$
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908
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Investor
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$
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112
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$
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350
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$
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607
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$
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1,341
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Retirement
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$
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151
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$
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1,460
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$
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2,731
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$
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5,758
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Assuming no redemption of shares:
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Share class
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1 year
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3 years
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5 years
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10 years
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C
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$
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203
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$
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655
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$
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1,133
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$
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2,452
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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 Funds performance. During the most recent fiscal year, the Funds portfolio turnover rate was 60% of the average value of its portfolio.
Principal Investment Strategies
Under normal circumstances, at least 80% of the Funds net assets (plus the amount of any borrowings for investment purposes) are invested in common stocks and securities convertible into common stocks (collectively, stocks) of issuers based in at least three different countries located outside the United States. The Fund will primarily invest in countries comprising the Morgan Stanley Capital International® Europe Australasia Far East Index (MSCI EAFE Index). The MSCI EAFE Index is comprised of equity securities of companies from various industrial sectors whose
Summary Prospectus | February 28, 2013
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1
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American Beacon International Equity Fund
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primary trading markets are located outside the United States. Companies included in the MSCI EAFE Index are selected from among the larger capitalization companies in these markets. The Fund may invest in companies of all market capitalizations. The Fund may use futures contracts and foreign currency forward contracts, including non-deliverable forwards (NDFs) contracts, as a hedge against foreign currency fluctuations.
The Manager allocates the assets of the Fund among different sub-advisors. The Manager believes that this strategy may help the Fund outperform other investment styles over the longer term while reducing volatility and downside risk.
The sub-advisors select stocks that, in their opinion, have most or all of the following characteristics (relative to that stocks country, sector or industry):
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above-average return on equity or earnings growth potential,
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below-average price to earnings or price to cash flow ratio,
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below-average price to book value ratio, and
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above-average dividend yields.
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The sub-advisors may consider potential changes in currency exchange rates when choosing stocks. Each of the sub-advisors determines the earnings growth prospects of companies based upon a combination of internal and external research using fundamental analysis and considering changing economic trends. The decision to sell a stock is typically based on the belief that the company is no longer considered undervalued or shows deteriorating fundamentals, or that better investment opportunities exist in other stocks. A sub-advisor may trade forward foreign currency contracts, including NDF contracts, or currency futures in an
attempt to reduce the Funds risk exposure to adverse fluctuations in currency exchange rates.
The Fund may invest cash balances in 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 objective 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:
Currency Risk
Foreign currencies may decline in value relative to the U.S. dollar and affect the Funds 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.
Equity Investments Risk
Equity securities generally are subject to market risk. The Funds investments in equity securities may include common stocks and securities convertible into or exchangeable for common stocks. Investing in such securities may expose the Fund to additional risk.
Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company. Preferred stocks and convertible securities are sensitive to movement in interest rates. In addition, convertible securities are subject to risk that the credit standing of the issuer may have an effect on the securitys investment value.
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 and greater volatility, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased price volatility; (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies; and (7) delays in transaction settlement in some foreign markets.
Futures Contracts and Foreign Currency Forward Contracts Risk
Futures contracts and foreign currency forward contracts, including NDFs, are derivative instruments pursuant to a contract with a counterparty to pay a fixed price for an agreed amount of securities or other underlying assets 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 such derivative instruments may expose the Fund to additional risks that it would not be subject to if they invested directly in the securities underlying those derivatives. Futures contracts may experience potentially dramatic price changes (losses) and imperfect correlations
between the price of the contract and the underlying security, index or currency which will increase the volatility of the Fund and may involve a small investment of cash relative to the magnitude of the risk assumed. 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.
Hedging Risk
Gains or losses from positions in hedging instruments may be much greater than the instruments original cost. The counterparty may be unable to honor its financial obligation to a Fund. In addition, the Manager or a sub-advisor may be unable to close the transaction at the time it would like or at the price it believes the security is currently worth.
Investment Risk
An investment in the Fund is not a deposit of 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 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 issuers 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 high growth rates during periods of economic expansion.
Market Events Risk
Turbulence in financial markets and reduced liquidity in equity, credit and fixed-income markets may negatively affect many issuers worldwide which could adversely affect the Fund.
Summary Prospectus | February 28, 2013
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2
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American Beacon International Equity Fund
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Market Risk
Market risks, including political, regulatory, market and economic developments, and developments that impact specific economic sectors, industries or segments of the market, can affect the value of a Funds shares. Equity investments are subject to stock market risk, which involves the possibility that the value of the Funds investments in stocks of a particular country will decline due to drops in the stock market due to general market, regulatory, political and economic conditions. From time to time, certain investments held by the Fund may have limited marketability and may be difficult to sell at favorable times
or prices. If the Fund is forced to sell such holdings to meet redemption requests or other cash needs, the Fund may have to sell them at a loss.
Market Timing Risk
Because the Fund invests in foreign securities, it is particularly subject to the risk of market timing activities. The Fund generally prices foreign securities using their closing prices from the foreign markets in which they trade, typically prior to the Funds determination of its net asset value. These prices may be affected by events that occur after the close of a foreign market but before the Fund prices its shares. In such instances, the Fund may fair value foreign securities. However, some investors may engage in frequent short-term trading in the Fund to take advantage of any price differentials that may be
reflected in the net asset value of the Funds shares. There is no assurance that fair valuation of securities can reduce or eliminate market timing. While the Manager monitors trading in Fund shares, there is no guarantee that it can detect all market timing activities.
Other Investment Companies Risk
The Fund may invest in shares of other registered investment companies, including open-end funds and money market funds. To the extent that the Fund invests in shares of other registered investment companies, you will indirectly bear fees and expenses charged by the underlying funds in addition to the Funds direct fees and expenses and will be subject to the risks associated with investments in those funds.
Securities Lending Risk
To the extent the Fund lends its securities, it may be subject to the following risks. Borrowers of the Funds securities typically provide collateral in the form of cash that is reinvested in securities. The securities in which the collateral is invested may not perform sufficiently to cover the return collateral payments owed to borrowers. In addition, delays may occur in the recovery of securities from borrowers, which could interfere with the Funds ability to vote proxies or to settle transactions.
Securities Selection Risk
Securities selected by the Manager or a sub-advisor for the Fund may not perform to expectations. This could result in the Funds underperformance compared to other funds with similar investment objectives.
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 go down. While the Funds investments in value stocks may limit its downside risk over time, the Fund may produce more modest gains than riskier stock funds as a trade-off for this potentially lower risk. Different investment styles tend to shift in and out of favor, depending on market conditions and investor sentiment.
Fund Performance
The bar chart and table below provide an indication of risk by showing how the Funds performance has varied from year to year. The table shows how the Funds performance compares to a broad-based market index and the Lipper® International Funds Index, a composite of mutual funds comparable to the Fund.
The chart and the table show the performance of the Funds Investor Class shares for all periods. The Fund began offering Institutional Class shares on August 7, 1991, Investor Class shares on August 1, 1994, Advisor Class shares on May 1, 2003, Retirement Class Shares on May 1, 2009, Y Class shares on August 3, 2009, A Class shares on May 17, 2010 and C Class shares on September 1, 2010. In the table below, the performance of the Investor Class is shown for the Advisor Class, A Class and C Class shares and the performance of the Institutional Class is shown for Y Class shares prior to the dates that such newer share
classes were first offered. For Retirement Class shares, performance results before May 1, 2003 are for Investor Class shares and performance results from May 1, 2003 to May 1, 2009 are for Advisor Class shares. In each case, the older share classes would have had similar annual returns to the newer share classes because the shares are invested in the same portfolio securities. However, because the older classes had lower expenses, their performance was better than the newer classes would have realized in the same period. You may obtain updated performance information on the Funds 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.
Calendar year total returns for Investor Class shares
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The bar chart previously reflected the performance of the Fund's Institutional Class shares. The bar chart currently shows the performance of the Fund's Investor Class shares for consistency with disclosures included in the Fund's annual report to shareholders for the period ended October 31, 2012.
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Highest Quarterly Return:
(1/1/03 through 12/31/12)
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24.81%
(2nd Quarter 2009)
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Lowest Quarterly Return:
(1/1/03 through 12/31/12)
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-21.72%
(3rd Quarter 2011)
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Average Annual Total Returns
1,2
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For the periods ended December 31, 2012
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Inception Date of Class
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Investor Class
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8/1/1994
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1 Year
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5 Years
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10 Years
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Return Before Taxes
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21.16
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%
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-2.72
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%
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8.85
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Return After Taxes on Distributions
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20.77
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%
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-2.91
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%
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8.20
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Return After Taxes on Distributions and Sale of Fund Shares
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14.28
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%
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-2.09
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%
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7.98
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%
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Summary Prospectus | February 28, 2013
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3
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American Beacon International Equity Fund
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Share class (before taxes)
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Inception Date of Class
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1 Year
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5 Years
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10 Years
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A
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5/17/2010
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13.90
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%
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-3.95
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%
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8.16
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%
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C
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9/1/2010
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19.05
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%
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-3.16
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%
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8.60
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%
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Y
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8/3/2009
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21.47
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%
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-2.45
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%
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9.11
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%
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Advisor
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5/1/2003
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20.90
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%
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-2.97
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%
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8.57
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Institutional
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8/7/1991
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21.51
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%
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-2.41
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%
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9.13
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Retirement
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5/1/2009
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20.76
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%
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-3.04
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%
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8.53
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%
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Indices (reflects no deduction for fees, expenses or taxes)
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1 Year
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5 Years
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10 Years
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MCSI EAFE Index
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17.32
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%
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-3.69
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%
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8.21
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%
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Lipper International
Funds Index
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19.70
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%
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-2.81
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%
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8.81
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%
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1
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After-tax returns are shown only for Investor Class shares; after-tax returns for other share classes will vary. 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 taxes. Actual after-tax returns depend on an investors tax situation and may differ from those shown. If you hold your Fund shares through a tax-deferred arrangement, such as an IRA or a 401(k), the after-tax returns do not apply to your situation. The return after taxes on distribution 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.
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2
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The table previously reflected the after-tax return of the Fund's Institutional Class shares. The table currently shows the after-tax return of the Fund's Investor Class shares for consistency with disclosures included in the Fund's annual report to shareholders for the period ended October 31, 2012.
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Management
The Manager
The Fund has retained American Beacon Advisors, Inc. to serve as its Manager.
Sub-Advisors
The Funds assets are currently allocated among the following investment sub-advisors:
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Causeway Capital Management LLC
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Lazard Asset Management LLC
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Templeton Investment Counsel, LLC
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Portfolio Managers
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American Beacon Advisors, Inc.
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Gene L. Needles, Jr.
President & Chief Executive Officer
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Since 2012
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Wyatt L. Crumpler
Chief Investment Officer
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Since 2007
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Kirk L. Brown
Senior Portfolio Manager
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Since 1994
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Causeway Capital Management LLC
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Sarah H. Ketterer
Chief Executive Officer
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Since 2001
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Harry W. Hartford
President
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Since 2001
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James A. Doyle
Director
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Since 2006
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Jonathan P. Eng
Director
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Since 2006
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Kevin Durkin
Director
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Since 2006
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Conor Muldoon
Director
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Since 2010
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Lazard Asset Management LLC
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John R. Reinsberg
Deputy Chairman
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Since 1999
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Michael A. Bennett
Managing Director
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Since 2003
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Michael G. Fry
Managing Director
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Since 2005
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Michael Powers
Managing Director
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Since 2003
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Kevin J. Matthews
Director
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Since 2013
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Templeton Investment Counsel, LLC
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Cindy L. Sweeting
Executive Vice President, Director of Portfolio
Management and Portfolio Manager Templeton Global
Equity Group
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Since 2012
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Antonio T. Docal
Executive Vice President and
Portfolio Manager
Templeton Global Equity Group
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Since 2012
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Purchase and Sale of Fund Shares
You may purchase, redeem or exchange shares of the Fund on any business day, which is any day the New York Stock Exchange is open for business. You may purchase, redeem or exchange Institutional Class, Investor Class, Advisor Class, Retirement Class and Y Class shares directly from the Fund by calling 1-800-658-5811, writing to the Fund at P.O. Box 219643, Kansas City, MO 64121, or visiting
www.americanbeaconfunds.com
. For overnight delivery, please mail your request to American Beacon Funds, c/o BFDS, 330 West 9th Street, Kansas City, MO 64105. You also may purchase, redeem or exchange all classes of shares
offered in this prospectus through a broker-dealer or other financial intermediary. The minimum initial purchase into the Fund is $250,000 for Institutional Class shares, $100,000 for Y Class shares, $2,500 for A Class, Advisor Class, Retirement Class and Investor Class shares, and $1,000 for C Class shares. The minimum subsequent investment by wire is $500 for A Class, C Class and Investor Class shares. No minimums apply to subsequent investments by wire for other classes of shares. For all classes, the minimum subsequent investment is $50 if the investment is made by ACH, check or exchange.
Tax Information
Dividends and capital gain distributions, if any, which you receive from the Fund are subject to federal income tax and may also be subject to state and local taxes, unless your account is tax-exempt or tax deferred (in which case you may be taxed later, upon the withdrawal of your investment from such account).
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 Funds 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 intermediarys website for more information.
Summary Prospectus | February 28, 2013
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American Beacon International Equity Fund
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