American Beacon IMC International Small Cap Fund (TOVIX)

The Fund’s investment objective is long-term capital appreciation.

Total Fund Assets ($M) 156.2 as of 1/31/2026
Inception Date 1/18/2019

Overview

A DISCIPLINED APPROACH TO ACTIVELY HARNESSING THE MOMENTUM PREMIUM
IMC’s investment process aims to generate outperformance by harnessing the power of the momentum premium, exploiting behavioral biases around change (such as shifting investor expectations/valuation), identifying companies with improving or accelerating financial performance, and constantly addressing portfolio risk. Their systematic approach to discovering ideas, focused analysis, timely decision making and efficient implementation supports their effort to maximize outperformance and achieve consistent results.

Firm inception: 2014

Portfolio managers:

  • Travis Prentice; industry since 1997
  • Joshua Moss; industry since 1999
  • John Scripp; industry since 2007

INVESTMENT STRATEGY

  • Deploy systematic daily process using momentum signals to identify small capitalization, non-U.S. equities exhibiting dynamic change.
  • Conduct focused analysis on candidate companies to identify drivers of change that are mispriced by the market.
  • Consistently refresh the portfolio in a disciplined manner to avoid stale momentum.
  • Execute through a skilled trading team to minimize implementation costs.
  • Employ portfolio risk management through qualitative and quantitative processes.
Fund Details as of 02/17/2026
Ticker TOVIX
Inception Date 1/18/2019
Prior Class Inception Date 8/1/1994
Fund Share Class NAV $23.42
Total Fund Assets ($M)
as of 1/31/2026
156.2
Share Class Assets ($M)
as of 1/31/2026
7.0
Sub-Advisor % as of 12/31/2025
Global IMC LLC100.0%
Benchmark(s)
MSCI® ACWI ex USA Small Cap Index (Net)
CUSIP 024526386
Gross Expense Ratio (%) 1.22%
Net Expense Ratio (%) 1 0.90%
1 The net expense ratio may reflect fees and expenses that American Beacon Advisors has contractually agreed to reduce and/or reimburse through February 28, 2026.

Net asset value (NAV) is the value of one share of the portfolio excluding any sales charges.

Performance

Total Return

Time Period
Name/Class QTR* YTD* 1 Year 3 Year 5 Year 10 Year Since Inception
IMC International Small Cap Fund (R5) 14.39% 13.33% 57.32% 19.86% 10.09% 9.08% 6.52%
MSCI® ACWI ex USA Small Cap Index (Net) 9.36% 6.44% 35.78% 15.34% 8.29% 9.68% 6.31%
Name/Class QTR* YTD* 1 Year 3 Year 5 Year 10 Year Since Inception
IMC International Small Cap Fund (R5) 4.15% 36.62% 36.62% 18.23% 7.26% 7.05% 6.12%
MSCI® ACWI ex USA Small Cap Index (Net) 2.96% 29.26% 29.26% 15.61% 6.91% 8.13% 6.12%

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.

Performance shown is historical and is not indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, click here.

*Not Annualized.

Important Information: All investing involves risk, including possible loss of principal. Indexes are unmanaged and one cannot invest directly in an index. Please note that the recent performance of the securities market has helped produce short-term returns that are not typical and may not continue in the future.

For any Class of the Fund that began operating within the 10-year/since inception period shown, the performance shown prior to the inception date of the Class is that of a class (or series of classes) previously in operation. The combined returns have not been adjusted for any difference between the fees and expenses of the Class and the historical fees and expenses of the included previous class (or classes). If the previous class(es) had lower expenses, the resulting performance would be better than the Class would have realized during the same period. If the previous class(es) had higher expenses, the resulting performance would be lower than the Class would have realized during the same period. A portion of fees charged to the R5 Class of IMC International Small Cap Fund was waived since Class inception through 2024. A portion of fees charged to the Investor Class of IMC International Small Cap Fund was waived from Fund inception through 2019 and in 2024. Performance prior to waiving fees was lower than actual returns shown for periods when fees were waived. Specific information about any Fund may be found in Performance Disclaimers or in the prospectus.

The MSCI ACWI (All Country World Index) ex USA Small Cap Index is a market-capitalization-weighted index designed to measure the investable equity market performance for global investors of small-cap stocks in developed and emerging markets, excluding the United States.

Certain information contained herein (the “Information”) is sourced from/copyright of MSCI Inc., MSCI ESG Research LLC, or their affiliates (“MSCI”), or information providers (together the “MSCI Parties”) and may have been used to calculate scores, signals, or other indicators. The Information is for internal use only and may not be reproduced or disseminated in whole or part without prior written permission. The Information may not be used for, nor does it constitute, an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product, trading strategy, or index, nor should it be taken as an indication or guarantee of any future performance. Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the fund’s assets under management or other measures. MSCI has established an information barrier between index research and certain Information. None of the Information in and of itself can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided “as is” and the user assumes the entire risk of any use it may make or permit to be made of the Information. No MSCI Party warrants or guarantees the originality, accuracy and/or completeness of the Information and each expressly disclaims all express or implied warranties. No MSCI Party shall have any liability for any errors or omissions in connection with any Information herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Portfolio

Equity Sector Weightings

as of 12/31/2025

Industrials 29.5%
Information Technology 22.7%
Financials 14.8%
Materials 14.3%
Consumer Discretionary 7.3%
Health Care 4.4%
Energy 3.7%
Utilities 1.6%
Communication Services 1.2%
Consumer Staples 0.7%

Country Weightings

as of 12/31/2025

Japan 17.7%
Taiwan 14.9%
Canada 13.5%
South Korea 9.8%
Australia 7.1%
Israel 5.1%
Italy 4.2%
Denmark 3.7%
United Kingdom 3.4%
Spain 3.3%

Excludes cash.

Portfolio Statistics

as of 12/31/2025

Forward Price-to-Earnings Ratio (P/E) 16.49
Price-to-Book Ratio (P/B) 2.82
1-Year ROE 18.59
Weighted Avg. Market Cap ($ bil) 7.32

3-Year Risk Summary

as of 12/31/2025

Alpha 3.55
Beta 0.96
R2 0.69
Sharpe Ratio 0.99
Standard Deviation 14.06

Top Ten Holdings

as of 12/31/2025

Holding
Taiwan Union Technology Corporation 1.2%
Kandenko Co., Ltd. 1.0%
NextVison Stabilized Systems, Ltd. 1.0%
Enerflex Ltd. 0.9%
Artemis Gold Inc 0.9%
Endeavour Mining PLC 0.9%
Bombardier Inc. Class B 0.9%
Eldorado Gold Corporation 0.9%
HD KOREA SHIPBUILDING & OFFSHORE ENGINEERING CO. LTD. 0.9%
Hudbay Minerals Inc 0.9%
Total Fund Holdings 150

Asset Allocation

as of 12/31/2025

Equity 98.5%
Cash 1.5%

The Fund may purchase and sell futures contracts to gain market exposure on cash balances.

Market Capitalization

as of 12/31/2025

$0.75 billion – $1.5 billion 10.3%
$1.5 billion – $7.5 billion 53.4%
$7.5 billion – $15 billion 25.4%
$15 billion – $50 billion 10.2%
$50 billion – $100 billion 0.8%

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.

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