Investing in small-capitalization stocks may involve greater volatility and lower liquidity than larger company stocks. Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales. Investing in foreign and emerging markets may involve heightened risk due to currency fluctuations and economic and political risks. To the extent the Fund invests more heavily in a particular country or geographic region, its performance will be sensitive to factors affecting that country or region. The Fund may have high portfolio turnover risk, which could increase the Fund’s transaction costs and possibly have a negative impact on performance. Geopolitical and other events have led to market disruptions causing adverse changes in the value of investments broadly. Changes in value may be temporary or may last for extended periods. The use of futures contracts for cash management may subject the Fund to losing more money than invested. The Fund participates in a securities lending program. Please see the prospectus for a complete discussion of the Fund’s risks. There can be no assurances that the investment objectives of this Fund will be met.
Effective February 24, 2025, the Board of Trustees of the American Beacon Funds approved changing the name of the American Beacon EAM International Small Cap Fund to the American Beacon IMC International Small Cap Fund. The change is in conjunction with the EAM Investors rebrand to The Informed Momentum Company. Of note, the investment strategies of the Fund’s sub-advisor will not change, and the Fund will continue to seek long-term capital appreciation. In addition, there have been no changes to the sub-advisor’s ownership, team or investment process.
Effective February 4, 2025, the name of the sub-advisor changed from EAM Global Investors LLC to Global IMC LLC as part of their company rebranding. Of note, the investment strategies of the Fund’s sub-advisor will not change, and the Fund will continue to seek long-term capital appreciation. There have been no changes to the sub-advisor’s ownership, team or investment process.
Effective January 21, 2023, the Fund’s strategy was changed to principally invest in equity securities of small-market-capitalization companies that are economically tied to countries outside of the United States, including developed and emerging market countries, and the Fund’s benchmark index was changed from the MSCI EAFE Index to the MSCI ACWI ex-U.S. Small Cap Index.
The P/E Ratio of a stock is calculated by dividing the current price by forecasted 12-month earnings per share. The P/B Ratio of a stock is calculated by dividing the current price by book value per share. R-squared (R2) is the percentage of the Fund’s three-year return that is explained by movements in its benchmark index. Alpha is a measure of the Fund’s expected performance versus the benchmark, adjusted for relative risk. Beta is a measure of the Fund’s volatility versus the benchmark. Sharpe Ratio is a measure of the Fund’s return per unit of total risk. Standard Deviation is a measure of the historical volatility of the Fund’s returns. Return on Equity (ROE) is net income divided by net worth.