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![[GRAPHIC MISSING]](http://content.edgar-online.com/edgar_conv_img/2014/03/03/0001144204-14-012860_LOGO_AMERICANBEACON-SUMM.JPG)
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American Beacon
High Yield Bond Fund
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Ticker Symbol:
A Class: ABHAX
C Class: AHBCX
Y Class: ACYYX
Institutional: AYBFX
Investor: AHYPX
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SUMMARY PROSPECTUS
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FEBRUARY 28, 2014
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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 high current income and 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 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)
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Share class
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A
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C
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Y
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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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4.75
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%
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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 (as a percentage of the lower of original offering price or redemption proceeds)
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0.50
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%
1
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1.00
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%
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None
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None
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None
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Redemption fee (as a percentage of amount redeemed; applies to the proceeds of shares redeemed within 90 days of purchase)
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2.00
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%
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2.00
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%
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2.00
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%
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2.00
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%
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2.00
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%
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Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
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Share class
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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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0.43
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%
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0.43
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%
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0.43
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%
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0.43
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%
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0.43
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%
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Distribution and/or service (12b-1) fees
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0.25
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%
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1.00
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%
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0.00
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%
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0.00
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%
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0.00
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%
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Other Expenses
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0.70
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%
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0.69
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%
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0.59
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%
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0.48
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%
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0.70
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%
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Acquired Fund Fees and Expenses
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0.01
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%
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0.01
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%
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0.01
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%
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0.01
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%
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0.01
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%
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Total Annual Fund Operating Expenses
2
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1.39
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%
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2.13
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%
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1.03
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%
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0.92
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%
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1.14
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%
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Fee waiver and/or expense reimbursement
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(0.26
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)%
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(0.25
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)%
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(0.04
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)%
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(0.04
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)%
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Total
Annual Fund Operating Expenses after fee waiver and/or expense reimbursement
3
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1.13
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%
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1.88
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%
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0.99
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%
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0.92
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%
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1.10
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%
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1
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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.
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2
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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 Fund’s Financial Highlights table, which reflects the operating expenses of the Fund and does not include Acquired Fund Fees and Expenses.
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3
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The Manager has contractually agreed to reduce and/or reimburse the A Class, C Class, Y Class and Investor Class of the Fund for Other Expenses, as applicable, through February 28, 2015 to the extent that Total Annual Fund Operating Expenses exceed 1.12% for the A Class, 1.87% for the C Class, 0.98% of the Y Class and 1.09% for the Investor class (excluding taxes, brokerage commissions, acquired fund fees and expenses and other extraordinary expenses such as litigation). The contractual expense reimbursement can be changed only with the approval of a majority of the Fund’s Board of Trustees. The Manager can be reimbursed by the Fund for any contractual fee reductions or expense reimbursements if reimbursement to the Manager (a) occurs within three years after the Manager’s 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 $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
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Share class
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1 year
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3 years
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5 years
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10 years
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A
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$
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585
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$
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870
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$
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1,176
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$
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2,042
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C
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$
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291
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$
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643
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$
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1,122
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$
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2,444
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Y
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$
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101
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$
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324
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$
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565
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$
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1,256
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Institutional
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$
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94
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$
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294
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$
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510
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$
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1,132
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Investor
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$
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112
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$
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358
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$
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623
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$
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1,381
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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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191
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$
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643
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$
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1,122
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$
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2,444
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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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 82% of the average value of its portfolio.
Principal Investment Strategies
This Fund seeks to maximize current income by investing in a diversified portfolio of public and private issue debt securities that are generally rated below investment grade (such as BB or lower by Standard & Poor’s Ratings Services or Fitch, Inc. and/or Ba or lower by Moody’s Investors Service, Inc.) or deemed to be below investment grade by an investment sub-advisor. These types of securities are commonly referred to as “high-yield bonds” or “junk bonds.” The Fund seeks capital appreciation by investing in issues whose relative value is expected to increase over time. The Fund has no
limitations regarding the durations of the debt securities it can buy or the market capitalization of the issuers of those securities.
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 seeks its investment objective by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in a diversified portfolio of domestic and foreign high-yield bonds. High-yield issuers are generally those which have below investment grade ratings because they are relatively small in size, relatively young in years, relatively leveraged financially (perhaps borrowing heavily to finance expansion or due to a leveraged buyout), or formerly “blue chip” companies that have encountered some financial difficulties.
In selecting investments, the Fund’s sub-advisors utilize a bottom-up and research-driven investment process that relies heavily on internal research and fundamental credit analysis. The investment philosophy of each sub-advisor concentrates on identification of relative value and downside protection.
To a lesser extent, the Fund may invest in other securities, including investment grade securities, foreign securities, common and preferred stocks and convertible securities, in keeping with the Fund’s overall investment objective.
The Fund may invest cash balances in other investment companies 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 designed primarily for investors seeking current income from a fund that invests mainly in a variety of high-yield, high-risk debt securities. Those investors should be willing to assume the credit risks of a fund that typically invests a significant amount of its assets in below investment-grade debt securities and the price changes in those securities that can occur when interest rates change. The Fund is not designed for investors who need an assured level of current 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:
Convertible Securities Risk
The value of a convertible security is influenced by both the yield of non-convertible securities of comparable issuers and by the value of the underlying common stock. The investment value of a convertible is strictly based on its yield and tends to decline as interest rates increase. Convertible securities may also be subject to credit risk, market risk and interest rate risk.
Credit Risk
The Fund is subject to the risk that the issuer or guarantor of a debt security will fail to make timely payment of interest or principal. A decline in the credit rating of an individual security held by the Fund may have an adverse impact on its price. Rating agencies might not always change their credit rating on an issuer or security in a timely manner to reflect events that could affect the issuer’s ability to make timely payments on its obligations. Since the Fund invests in lower-quality debt securities considered speculative in nature, this risk will be substantial.
Equity Investments Risk
Equity securities are subject to market risk. The Fund’s investments in equity securities may include common and preferred stocks and convertible securities. 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 rights and warrants may be more speculative than certain other types of investments because rights and warrants do not carry with them dividend or voting rights with respect to the underlying securities, or any rights in the assets of the
issuer. In addition, the value of a right or a warrant does not necessarily change with the value of the underlying securities, and a right or a warrant ceases to have value if it is not exercised prior to its expiration date.
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.
High-Yield Securities Risk
Investments in high-yield securities rated below investment grade, or “junk bonds”, generally involve significantly greater risks of loss of your money than an investment in investment grade bonds. Compared with issuers of investment grade bonds, high-yield bonds are more likely to encounter financial difficulties and to be materially affected by these difficulties. Rising interest rates may compound these difficulties and reduce an issuer’s ability to repay principal and interest obligations. Issuers of lower-rated securities also have a greater risk of default or bankruptcy. High-yield securities also may be
less liquid than higher quality investments. A security whose credit rating has been lowered may be particularly difficult to sell.
Interest Rate Risk
The Fund is subject to the risk that the market value of the bonds it holds will decline due to rising interest rates. When interest rates rise, the prices of most bonds go down. As of the date of this Prospectus, interest rates are at or near historic lows, which may increase the Fund’s exposure to the risks associated with rising interest rates. The price of a bond is also affected by its duration. Bonds with longer duration generally have greater sensitivity to changes in interest rates.
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.
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
The Fund is subject to market risks that can affect the value of its shares. These risks include political, regulatory, market and economic developments, including developments that impact specific economic sectors, industries or segments of the market. For example, market risk involves the possibility that the value of the Fund’s investments will decline due to drops in the overall high-yield bond market. Changes in the economic climate, investor perceptions, and stock market volatility can cause the prices of the Fund’s investments to decline, regardless of the financial conditions of the issuers held by the Fund.
From time to time, certain investments held by the Fund may have limited marketability or contractual limitations on their resale and may be difficult to value and sell at favorable times or prices. Events in the fixed income markets may lead to periods of volatility, unusual liquidity issues and, in some cases, credit downgrades and increased likelihood of default. Such events may cause the value of securities owned by the Fund to go up or down, sometimes rapidly or unpredictably, and may lead to increased redemptions, which could cause the Fund to experience a loss when selling securities to meet redemption requests by shareholders. If the Fund is forced to sell holdings to meet redemption requests, the Fund may have to sell them at a loss.
Market Timing Risk
Because the Fund invests in high yield bonds that may lack market liquidity, it is subject to the risk of market timing activities. The limited trading activity of some high yield bonds may result in market prices that do not reflect the true market value of these illiquid 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 Fund’s 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 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.
Unrated Securities Risk
Because the Fund may purchase securities that are not rated by any rating organization, a sub-advisor may internally assign ratings to certain of those securities, after assessing their credit quality, in categories of those similar to those of rating organizations. Some unrated securities may not have an active trading market or may be difficult to value, which means the Fund might have difficulty selling them promptly at an acceptable price.
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
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High Current Yield Bond 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 December 29, 2000, Investor Class shares on March 1, 2002, Y Class shares on March 1, 2010, 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 is shown for Y Class shares for all periods up to the inception of the Y Class. The performance of the Investor Class is shown for all periods up to the inception of the A Class and C Class shares. 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 share 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/2014/03/03/0001144204-14-012860_V369775_CHRT-HYBF.JPG)
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1
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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.
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Highest Quarterly Return:
(1/1/04 through 12/31/13)
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19.21%
(2nd Quarter 2009)
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Lowest Quarterly Return:
(1/1/04 through 12/31/13)
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-18.60%
(4th Quarter 2008)
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Average Annual Total Returns
1,2
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For the periods ended December 31, 2013
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Inception
Date of Class
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Investor Class
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3/1/2002
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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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7.55
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%
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16.35
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%
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6.75
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%
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Return After Taxes on Distributions
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4.62
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%
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13.06
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%
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3.79
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%
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Return After Taxes on Distributions and Sale of Fund Shares
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4.29
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%
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11.68
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%
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4.02
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%
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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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2.40
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%
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15.27
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%
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6.24
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%
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C
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9/1/2010
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5.72
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%
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15.75
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%
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6.47
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%
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Y
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3/1/2010
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7.56
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%
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16.42
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%
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6.92
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%
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Institutional
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12/29/2000
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7.67
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%
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16.61
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%
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7.00
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%
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Indices
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1 Year
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5 Years
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10 Years
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JPMorgan Global High-Yield Index (reflects no deduction for fees, expenses or taxes)
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7.40
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%
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19.26
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%
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8.81
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%
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Lipper High Current Yield Bond Funds Index
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7.63
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%
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17.02
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%
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7.16
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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 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.
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2
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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.
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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:
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‣
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Franklin Advisers, Inc.
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‣
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Logan Circle Partners, L.P.
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‣
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PENN Capital Management Company, Inc.
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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 2002
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Franklin Advisers, Inc.
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Eric Takaha
Senior Vice President, Director of Corporate Credit and High Yield
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Since 2006
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Chris Molumphy
Executive Vice President, Chief Investment Officer for the Franklin Templeton Fixed Income Group
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Since 2006
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Glenn Voyles
Vice President
|
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Since 2006
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Logan Circle Partners, L.P.
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Timothy L. Rabe
Senior Portfolio Manager
|
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Since 2007
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PENN Capital Management Company, Inc.
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Richard A. Hocker
Chief Investment Officer
|
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Since 2011
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Martin A. Smith
Portfolio Manager
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Since 2011
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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 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 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 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.
