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American Beacon
Stephens Mid-Cap Growth Fund
SM
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Ticker Symbol:
A: SMFAX
C: SMFCX
Y: SMFYX
Institutional: SFMIX
Investor: STMGX
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SUMMARY PROSPECTUS
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MARCH 28, 2013
(supplemented May 31, 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 March 28, 2013 and most recently supplemented May 31, 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 Fund seeks long-term growth of capital.
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 31 of the Prospectus and Additional Purchase and Sale Information for A Class Shares on page 35 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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Institutional
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Investor
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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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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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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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Institutional
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Investor
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Management fees
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0.59%
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0.59%
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0.59%
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0.59%
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0.59%
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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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0.00%
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0.00%
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Other expenses
1
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0.99%
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12.95%
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3.26%
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0.69%
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1.08%
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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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Total annual fund operating expenses
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1.84%
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14.55%
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3.86%
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1.29%
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1.68%
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Expense reduction and reimbursement
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0.34%
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12.30%
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2.76%
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0.29%
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0.30%
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Total annual fund operating expenses after expense reduction and reimbursement
2
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1.50%
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2.25%
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1.10%
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1.00%
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1.38%
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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, Y Class, Institutional Class, and Investor Class of the Fund for Other Expenses through April 30, 2014 to the extent that Total Annual Fund Operating Expenses for the Fund exceed 1.49%, 2.24%, 1.99%, 0.09% and 1.37% for the A Class, C Class, Y Class, Institutional Class, and Investor Class, respectively (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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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 $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
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Share classes
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1 year
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3 years
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5 years
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10 years
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A
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$
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719
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$
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1,089
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$
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1,483
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$
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2,583
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C
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$
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328
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$
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2,940
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$
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5,158
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$
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9,096
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Y
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$
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112
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$
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923
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$
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1,753
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$
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3,913
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Institutional
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$
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102
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$
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381
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$
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680
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$
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1,531
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Investor
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$
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141
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$
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501
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$
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885
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$
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1,962
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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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228
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$
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2,940
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$
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5,158
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$
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9,096
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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 27% of the average value of its portfolio.
Principal Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of medium capitalization companies. The Fund considers a company to be a medium capitalization company if it has a market capitalization, at the time of investment, between $1 billion and the market capitalization
American Beacon Stephens Mid-Cap Growth Fund
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1
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Summary Prospectus | March 28, 2013
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of the largest company in the Russell Midcap® Index, which was $25.0 billion as of December 31, 2012.
Most of the assets of the Fund are invested in U.S. common stocks Stephens Investment Management Group, LLC (SIMG) believes have clear indicators of future earnings growth, or that demonstrate other potential for growth of capital. The Fund may invest in other securities, including preferred stock, securities convertible into common stock, U.S dollar denominated foreign stock traded on U.S. exchanges, American Depositary Receipts (ADRs) and real estate investment trusts (REITs). In selecting companies for the Fund, SIMG employs quantitative analysis and fundamental research with a focus on
earnings growth. SIMG will sell a security when appropriate and consistent with the Funds investment objectives and policies.
The Fund may also invest cash balances in other investment companies, including money market funds.
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 generally are subject to market risk. The Funds investments in equity securities may include common stocks, preferred stocks, securities convertible into common stocks, U.S. dollar-denominated foreign stocks traded on U.S. exchanges, REITs, and ADRs. Investing in such securities 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 are subject to certain of the risks associated with investing directly in foreign securities. Investments in 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 trading on U.S. exchanges. These securities 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.
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 typically lack the dividend yield that can cushion stock prices in market downturns. Different investment styles tend to shift in and out of favor, depending on market conditions and investor sentiment. The Funds growth style could cause the Fund to underperform funds that use a value or non-growth approach to investing or have a broader investment style.
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.
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 Funds shares. The Funds equity investments are subject to stock market risk, which involves the possibility that the value of the Funds 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.
Mid-Capitalization Companies Risk
Investing in the securities of mid-capitalization companies involves greater risk and the possibility of greater price volatility than investing in larger capitalization companies. Since mid-capitalization companies may have limited operating history, product lines and financial resources, the securities of these companies may lack sufficient market liquidity and can be sensitive to expected changes in interest rates, borrowing costs and earnings.
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, 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 Selection Risk
Securities selected by the sub-advisor or the Manager for the Fund may not perform to expectations. This could result in the Funds underperformance compared to other funds with similar investment objectives.
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
American Beacon Stephens Mid-Cap Growth Fund
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Summary Prospectus | March 28, 2013
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compares to the Russell Midcap® Growth Index, which is the Funds primary benchmark and is a broad measure of market performance. In addition, the Funds performance is compared to the S&P 500® Index, which is the Funds secondary index and is provided to offer a broader market perspective.
The Investor Class and Institutional Class shares of the Fund have adopted the performance history and financial statements of the Class A and Class I shares, respectively, of the Funds predecessor. The performance of the Funds Investor Class shares shown in the chart and table below represents the returns achieved by the Class A shares of the Funds predecessor from February 1, 2006 to February 24, 2012, and the performance of the Investor Class from February 24, 2012 through December 31, 2012. The table below also shows the performance of the A Class, C Class, Y Class and Institutional Class shares of the
Fund. The performance shown for the Institutional Class shares of the Fund represents: (1) the returns achieved by the Class A Shares of the Funds predecessor from February 1, 2006 to August 31, 2006, the inception date of the predecessor Funds Class I shares; (2) the performance of the Class I shares from inception to February 24, 2012; and (3) the performance of the Institutional Class shares from February 24, 2012 through December 31, 2012. Returns shown for the Funds Y Class, A Class and C Class shares represent the returns achieved by the Class A shares of the Funds predecessor from February 1, 2006 to February 24, 2012, and the performance of the Y Class, A Class and C Class shares, respectively, from February 24, 2012 through December 31, 2012. In each case, the newer share classes would have had similar annual returns to the predecessor Funds Class A and Class I shares because the shares of each class represent investments in the same portfolio
securities. However, because the Class A shares of the predecessor Fund had higher expenses than the Funds Institutional Class and Y Class shares now have, the total returns were lower than the Institutional Class and Y Class shares would have realized had the Y Class shares been in existence since February 1, 2006. Since the Investor Class shares had lower expenses than the Funds A Class and C Class shares now have, its performance was better than the performance of the A Class and C Class shares would have realized in the same period. The performance of the Fund and the Funds predecessor shown in the bar chart below do not include sales charges. If sales charges were reflected, returns would be lower. 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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Highest Quarterly Return:
(2/1/06 through 12/31/12)
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16.31%
(3rd Quarter 2009)
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Lowest Quarterly Return:
(2/1/06 through 12/31/12)
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-28.39%
(4th Quarter 2008)
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Average Annual Total Returns
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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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2/1/2006
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1 Year
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5 Years
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Since Inception
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Return Before Taxes
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14.75%
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2.71%
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4.89%
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Return After Taxes on Distributions
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14.65%
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2.69%
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4.88%
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Return After Taxes on Distributions and Sale of Fund Shares
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9.72%
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2.32%
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4.24%
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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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Since Inception
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A
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2/24/2012
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8.15%
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1.50%
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3.99%
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C
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2/24/2012
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13.26%
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2.62%
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4.82%
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Y
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2/24/2012
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15.26%
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2.80%
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4.96%
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Institutional
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8/31/2006
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15.19%
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2.99%
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7.12%
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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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Since Inception (2/1/2006)
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Russell Mid-Cap® Growth Index
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15.81
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%
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3.23
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%
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4.59
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Lipper Mid-Cap Growth Funds Index
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13.37
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%
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1.49
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%
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4.53
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S&P 500 Index
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16.00
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%
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1.66
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%
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3.78
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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 individual retirement account or a 401(k), the after-tax returns do not apply to your situation.
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Management
The Manager
The Fund has retained American Beacon Advisors, Inc. to serve as its Manager.
Sub-Advisor
The Funds investment sub-advisor is Stephens Investment Management Group, LLC
Portfolio Managers
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Stephens Investment Management Group, LLC
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Ryan Crane
Senior Portfolio Manager
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Since Fund Inception (2006)*
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John Thornton
Co-Portfolio Manager
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Since Fund Inception (2006)*
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Kelly Ranucci
Co-Portfolio Manager
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Since 2011**
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Sam Chase
Co-Portfolio Manager
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Since 2011**
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*
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Predecessor Fund inception date
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* *
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Including Predecessor Fund
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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
American Beacon Stephens Mid-Cap Growth Fund
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3
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Summary Prospectus | March 28, 2013
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exchange Institutional Class, Investor 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 64121-9643, or visiting
www.americanbeaconfunds.com
. For overnight delivery, please mail your request to American Beacon Funds, c/o BFDS, 330 West 9
th
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 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.
American Beacon Stephens Mid-Cap Growth Fund
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4
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Summary Prospectus | March 28, 2013
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