|
|
|
|
|
![[GRAPHIC MISSING]](http://content.edgar-online.com/edgar_conv_img/2014/03/03/0001144204-14-012849_LOGO_AMERICANBEACON-SUMM.JPG)
|
|
American Beacon
Large Cap Value Fund
|
|
Ticker Symbol:
A Class: ALVAX
C Class: ALVCX
Y Class: ABLYX
Advisor: AVASX
Institutional: AADEX
Investor: AAGPX
Retirement: ALCRX
|
|
|
|
|
|
SUMMARY PROSPECTUS
|
|
FEBRUARY 28, 2014
|
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 February 28, 2014, 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.
Investment Objective
The Fund’s investment objective is long-term capital appreciation and current income.
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 85 of the Prospectus and “Additional Purchase and Sale Information for A Class Shares” on page 91 of the statement of additional information.
Shareholder fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share class
|
|
|
|
A
|
|
C
|
|
Y
|
|
Advisor
|
|
Institutional
|
|
Investor
|
|
Retirement
|
|
Maximum sales charge imposed on purchases (as a percentage of offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
|
Maximum deferred sales charge (as a percentage of the lower of original offering price or redemption proceeds)
|
|
|
0.50%
1
|
|
|
|
1.00%
|
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share class
|
|
|
|
A
|
|
C
|
|
Y
|
|
Advisor
|
|
Institutional
|
|
Investor
|
|
Retirement
|
|
Management fees
|
|
|
0.23
|
%
|
|
|
0.23
|
%
|
|
|
0.23
|
%
|
|
|
0.23
|
%
|
|
|
0.23
|
%
|
|
|
0.23
|
%
|
|
|
0.23
|
%
|
|
Distribution and/or service (12b-1) fees
|
|
|
0.25
|
%
|
|
|
1.00
|
%
|
|
|
0.00
|
%
|
|
|
0.25
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
0.50
|
%
|
|
Other Expenses
|
|
|
0.60
|
%
|
|
|
0.61
|
%
|
|
|
0.43
|
%
|
|
|
0.59
|
%
|
|
|
0.35
|
%
|
|
|
0.70
|
%
|
|
|
0.60
|
%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
Total Annual Fund Operating Expenses
2
|
|
|
1.09
|
%
|
|
|
1.85
|
%
|
|
|
0.67
|
%
|
|
|
1.08
|
%
|
|
|
0.59
|
%
|
|
|
0.94
|
%
|
|
|
1.34
|
%
|
|
Recoupment of prior fee waiver and/or expense reimbursement
|
|
|
|
|
|
|
0.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses after recoupment of prior fee waiver and/or expense reimbursement
3
|
|
|
|
|
|
|
1.92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
A contingent deferred sales charge (“CDSC”) of 0.50% will be charged on certain purchases of $1,000,000 or more of A Class shares that are redeemed in whole or part within 18 months of purchase.
|
|
|
2
|
The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses to average net assets provided in the Fund’s Financial Highlights table, which reflects the operating expenses of the Fund and does not include Acquired Fund Fees and Expenses.
|
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 Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
Share class
|
|
1 year
|
|
3 years
|
|
5 years
|
|
10 years
|
|
A
|
|
$
|
680
|
|
|
$
|
902
|
|
|
$
|
1,142
|
|
|
$
|
1,828
|
|
|
C
|
|
$
|
295
|
|
|
$
|
589
|
|
|
$
|
1,008
|
|
|
$
|
2,175
|
|
|
Y
|
|
$
|
68
|
|
|
$
|
214
|
|
|
$
|
373
|
|
|
$
|
834
|
|
|
Advisor
|
|
$
|
110
|
|
|
$
|
343
|
|
|
$
|
595
|
|
|
$
|
1,317
|
|
|
Institutional
|
|
$
|
60
|
|
|
$
|
189
|
|
|
$
|
330
|
|
|
$
|
739
|
|
|
Investor
|
|
$
|
96
|
|
|
$
|
300
|
|
|
$
|
520
|
|
|
$
|
1,155
|
|
|
Retirement
|
|
$
|
136
|
|
|
$
|
424
|
|
|
$
|
734
|
|
|
$
|
1,612
|
|
Assuming no redemption of shares:
|
|
|
|
|
|
|
|
|
|
|
Share class
|
|
1 year
|
|
3 years
|
|
5 years
|
|
10 years
|
|
C
|
|
$
|
196
|
|
|
$
|
589
|
|
|
$
|
1,008
|
|
|
$
|
2,175
|
|
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. During the most recent fiscal year, the Fund’s portfolio turnover rate was 34% of the average value of its portfolio.
Principal Investment Strategies
Under normal circumstances, at least 80% of the Fund’s net assets (plus the amount of any borrowings for investment purposes) are invested in equity securities of large market capitalization U.S. companies. These companies have market capitalizations within the market capitalization range of the companies in the Russell 1000
®
Index at the time of investment. The Russell 1000 Index measures the performance of the 1,000 largest U.S. companies based on total market capitalization. As of January 31, 2014, the market capitalizations of the companies in the Russell 1000 Index ranged from $922 million to $469.9 billion.
The Fund’s investments may include common stocks, preferred stocks, securities convertible into U.S. common stocks, real estate investment trusts (“REITs”), American Depositary Receipts (“ADRs”) and U.S. dollar-denominated foreign stocks traded on U.S. exchanges (collectively referred to as “stocks”).
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 Fund’s sub-advisors select stocks that, in their opinion, have most or all of the following characteristics (relative to the S&P 500
®
Index):
|
|
‣
|
above-average earnings growth potential,
|
|
|
‣
|
below-average price to earnings ratio,
|
|
|
‣
|
below-average price to book value ratio, and
|
|
|
‣
|
above-average dividend yields.
|
Each of the Fund’s 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 sub-advisors typically seek to invest in companies that they believe are undervalued at the time of purchase. 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.
The Fund may invest cash balances in other investment companies and may purchase and sell futures contracts to gain market exposure on cash balances or reduce market exposure in anticipation of liquidity needs.
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:
Equity Investments Risk
Equity securities are subject to market risk. The Fund’s investments in equity securities may include common stocks, preferred stocks, securities convertible into or exchangeable for common stocks, REITs, ADRs and U.S. dollar-denominated foreign stocks traded on U.S. exchanges. Such investments may expose the Fund to additional risks.
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 movements in interest rates. In addition, convertible securities are subject to the risk that the credit standing of the issuer may have an effect on the convertible securities’ investment value. Investments in ADRs and U.S. dollar-denominated foreign stocks traded on U.S. exchanges are subject to certain of the risks associated with investing directly in foreign securities. REITs are subject to the risks associated with investing in the real estate
industry such as adverse developments affecting the real estate industry and real property values.
Foreign Exposure Risk
The Fund may invest in securities issued by foreign companies through ADRs and U.S. dollar-denominated foreign stocks traded on U.S. exchanges. ADRs are subject to many of the risks inherent in investing in foreign securities, including, but not limited to, currency fluctuations and political and financial instability in the home country of a particular ADR or foreign stock. 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, and (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies.
Futures Contracts Risk
Futures contracts are derivative investments 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. 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 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). There can be no assurance that any strategy used will succeed.
There may not be a liquid secondary market for the futures contract. When the Fund purchases or sells a futures contract, it is subject to daily variation margin calls that could be substantial in the event of adverse price movements. If the Fund has insufficient cash to meet daily variation margin requirements, it might need to sell securities at a time when such sales are disadvantageous.
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 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 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.
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 the Fund’s shares. The Fund’s equity investments are subject to stock market risk, which involves the possibility that the value of the Fund’s investments in stocks will decline due to drops in the stock market. 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.
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 Fund’s direct fees and expenses and will be subject to the risks associated with investments in those funds.
Securities Selection Risk
Securities selected by a sub-advisor or the Manager for the Fund may not perform to expectations. This could result in the Fund’s underperformance compared to other funds with similar investment objectives.
Small and Medium Capitalization Companies Risk
Investing in the securities of small and medium capitalization companies involves greater risk and the possibility of greater price volatility than investing in larger capitalization and more established companies. Since small and medium-sized companies may have limited operating history, product lines, and financial resources, 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.
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 Fund’s 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. The Fund’s value style 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 and the Lipper
®
Large-Cap Value Funds Index, a composite of mutual funds comparable to the Fund.
The chart and the table show the performance of the Fund’s Investor Class shares for all periods. The Fund began offering Institutional Class Shares on July 17, 1987, Investor Class shares on August 1, 1994, Advisor Class shares on May 31, 2005, 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 Institutional Class shares is shown for the Y Class shares and the performance of the Investor Class shares is shown for the Advisor Class, A Class and C Class shares, prior to the dates such
newer classes were first offered. For Retirement Class shares, performance results before May 31, 2005 are for Investor Class shares and performance results from May 31, 2005 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, the older classes had different expenses than the newer share classes. 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.
Calendar year total returns for Investor Class shares
![[GRAPHIC MISSING]](http://content.edgar-online.com/edgar_conv_img/2014/03/03/0001144204-14-012849_V369775_CHRT-LCVF.JPG)
|
|
1
|
The bar chart 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, 2013.
|
|
|
|
|
Highest Quarterly Return:
(1/1/04 through 12/31/13)
|
|
18.52%
(2nd Quarter 2009)
|
Lowest Quarterly Return:
(1/1/04 through 12/31/13)
|
|
-21.63%
(4th Quarter 2008)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns
1,2
|
|
|
|
For the periods ended December 31, 2013
|
|
|
|
Inception Date of Class
|
|
|
|
|
|
|
|
Investor Class
|
|
8/1/1994
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
Return Before Taxes
|
|
|
|
|
|
|
34.45
|
%
|
|
|
17.63
|
%
|
|
|
8.07
|
%
|
|
Return After Taxes on Distributions
|
|
|
|
|
|
|
33.70
|
%
|
|
|
17.27
|
%
|
|
|
7.58
|
%
|
|
Return After Taxes on Distributions and Sale of Fund Shares
|
|
|
|
|
|
|
19.49
|
%
|
|
|
14.30
|
%
|
|
|
6.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Share class (before taxes)
|
|
Inception Date of Class
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
A
|
|
|
5/17/2010
|
|
|
|
26.53
|
%
|
|
|
16.13
|
%
|
|
|
7.37
|
%
|
|
C
|
|
|
9/1/2010
|
|
|
|
32.18
|
%
|
|
|
16.90
|
%
|
|
|
7.73
|
%
|
|
Y
|
|
|
8/3/2009
|
|
|
|
34.81
|
%
|
|
|
17.94
|
%
|
|
|
8.35
|
%
|
|
Advisor
|
|
|
5/31/2005
|
|
|
|
34.28
|
%
|
|
|
17.46
|
%
|
|
|
7.90
|
%
|
|
Institutional
|
|
|
7/17/1987
|
|
|
|
34.94
|
%
|
|
|
18.05
|
%
|
|
|
8.40
|
%
|
|
Retirement
|
|
|
5/1/2009
|
|
|
|
33.94
|
%
|
|
|
17.13
|
%
|
|
|
7.74
|
%
|
|
|
|
|
|
|
|
|
|
Indices
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
Russell 1000 Value Index (reflects no deduction for fees, expenses or taxes)
|
|
|
32.53
|
%
|
|
|
16.67
|
%
|
|
|
7.58
|
%
|
|
Lipper Large-Cap Value Funds Index
|
|
|
33.24
|
%
|
|
|
16.36
|
%
|
|
|
6.84
|
%
|
|
|
1
|
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 investor’s 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.
|
|
|
2
|
The table 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, 2013
.
|
Management
The Manager
The Fund has retained American Beacon Advisors, Inc. to serve as its Manager.
Sub-Advisors
The Fund’s assets are currently allocated among the following investment sub-advisors:
|
|
‣
|
Barrow, Hanley, Mewhinney & Strauss, LLC
|
|
|
‣
|
Brandywine Global Investment Management, LLC
|
|
|
‣
|
Hotchkis and Wiley Capital Management, LLC
|
|
|
‣
|
Massachusetts Financial Services Company
|
Portfolio Managers
|
|
|
|
American Beacon Advisors, Inc.
|
Gene L. Needles, Jr.
President & Chief Executive Officer
|
|
Since 2012
|
Wyatt L. Crumpler
Chief Investment Officer
|
|
Since 2007
|
Adriana R. Posada
Senior Portfolio Manager
|
|
Since 1998
|
|
|
|
|
Barrow, Hanley, Mewhinney & Strauss, LLC
|
James P. Barrow
Portfolio Manager/Executive Director
|
|
Since Fund Inception (1987)
|
|
|
|
|
Brandywine Global Investment Management, LLC
|
Paul R. Lesutis
Managing Director
|
|
Since 1996
|
Patrick S. Kaser
Managing Director
|
|
Since 2010
|
James J. Clarke
Portfolio Manager
|
|
Since 2011
|
|
|
|
|
Hotchkis and Wiley Capital Management, LLC
|
George Davis
Principal, Portfolio Manager and Chief Executive Officer
|
|
Since 1988
|
Sheldon Lieberman
Principal and Portfolio Manager
|
|
Since 1994
|
Patricia McKenna
Principal and Portfolio Manager
|
|
Since 1995
|
Judd Peters
Portfolio Manager
|
|
Since 1999
|
Scott McBride
Portfolio Manager
|
|
Since 2001
|
|
|
|
|
|
|
|
|
Massachusetts Financial Services Company
|
Steven R. Gorham
Investment Officer and Portfolio Manager
|
|
Since 2010
|
Nevin P. Chitkara
Investment Officer and Portfolio Manager
|
|
Since 2010
|
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, Y Class, Advisor Class and Retirement 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 Advisor Class, A Class, Investor Class and Retirement Class shares, and $1,000 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 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.