American Beacon Small Cap Value Fund (AVFIX)

A multi-manager Fund seeking long-term capital appreciation and current income primarily through investments in small market capitalization U.S. stocks.

Total Fund Assets ($M) 3,939,867 as of 8/31/2025
Inception Date 12/31/1998

Overview

A TEAM OF MANAGERS
The Fund is sub-advised by five complementary asset managers, seeking stocks with:

  • Barrow: Below-market valuations and above-market free cash flow yield.
  • Brandywine Global: Low valuations and attractive price momentum, combining quantitative analysis with fundamental insights.
  • DRZ: Minimum dividend yield of 1%, attractive relative valuation and imminent fundamental catalyst.
  • H&W: Sustainable cash flows and strong balance sheets, undervalued relative to tangible assets and long-term normal earnings power.
  • Westwood: High-quality characteristics that possess undervalued earnings growth and asymmetric return potential.

FAR-REACHING STRATEGY
The multi-manager approach of the Fund enhances the diversification that can help lessen portfolio volatility in the long term.

  • Its bottom-up portfolio construction is well diversified at the security, industry and stock levels.
  • The primary emphasis is on finding undervalued securities with above-average earnings growth expectations.
Fund Details as of 09/30/2025
Ticker AVFIX
Inception Date 12/31/1998
Fund Share Class NAV $25.24
Total Fund Assets ($M)
as of 8/31/2025
3,939,867
Share Class Assets ($M)
as of 8/31/2025
1,641,580
Sub-Advisor % as of 6/30/2025
Barrow, Hanley, Mewhinney & Strauss, LLC20.4%
Westwood Management Corp.20.1%
Brandywine Global Investment Management, LLC20.0%
Hotchkis and Wiley Capital Management, LLC19.9%
DePrince, Race & Zollo, Inc.19.5%
Benchmark(s) Russell 2000® Value Index
S&P 500® Index TR
CUSIP 02368A638
Gross Expense Ratio (%) 0.80%
Net Expense Ratio (%) 0.80%
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
Small Cap Value (R5) 14.17% 3.29% 2.82% 9.58% 14.31% 8.49% 9.73%
Russell 2000® Value Index 11.29% -1.45% -4.27% 4.80% 12.41% 7.20% 8.31%
S&P 500® Index TR 14.21% 8.59% 16.33% 17.10% 15.88% 13.66% 8.32%
Name/Class QTR* YTD* 1 Year 3 Year 5 Year 10 Year Since Inception
Small Cap Value (R5) 4.18% -4.95% 1.85% 9.06% 14.25% 6.85% 9.45%
Russell 2000® Value Index 4.97% -3.16% 5.54% 7.45% 12.47% 6.72% 8.26%
S&P 500® Index TR 10.94% 6.20% 15.16% 19.71% 16.64% 13.65% 8.26%

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 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 C Class of Small Cap Value Fund was waived in 2018. 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 Russell 2000 Value Index is an unmanaged index of those stocks in the Russell 2000 Index with lower price-to-book ratios and lower forecasted growth values.

Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). ©LSE Group 2024. FTSE Russell is a trading name of certain of the LSE Group companies. “Russell®” is a trademark of the relevant LSE Group companies and is used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

The S&P 500® Index is a broad-based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by American Beacon Advisors. S&P® and S&P 500® are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); S&P Dow Jones Indices LLC are trademarks of the S&P Dow Jones Indices LLC and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by American Beacon Advisors. American Beacon Funds is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

Portfolio

Equity Sector Weightings

as of 6/30/2025

Financials 23.8%
Industrials 21.2%
Consumer Discretionary 12.7%
Information Technology 11.9%
Materials 7.3%
Energy 6.7%
Real Estate 5.0%
Health Care 3.7%
Utilities 3.5%
Consumer Staples 2.6%
Communication Services 1.7%
Commingled Fund 0.1%

Excludes cash.

Portfolio Statistics

as of 6/30/2025

Forward Price-to-Earnings Ratio (P/E) 13.65
Price-to-Book Ratio (P/B) 1.47
1-Year ROE 9.29
Weighted Avg. Market Cap ($ bil) 3.91

3-Year Risk Summary

as of 6/30/2025

Alpha 1.63
Beta 1
R2 0.97
Sharpe Ratio 0.19
Standard Deviation 23.34

Top Ten Holdings

as of 6/30/2025

Holding
F5, Inc. 1.6%
Avnet, Inc. 1.1%
PotlatchDeltic Corp. 1.1%
Lumentum Holdings, Inc. 1.0%
Coherent Corp. 0.9%
Marriott Vacations Worldwide Corp. 0.9%
Renasant Corp. 0.9%
Ciena Corp. 0.9%
Texas Capital Bancshares, Inc. 0.9%
Seacoast Banking Corp. of Florida 0.9%
Total Fund Holdings 418

Asset Allocation

as of 6/30/2025

Equity 95.8%
Cash 4.3%

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

Market Capitalization

as of 6/30/2025

Less than $0.4 billion 0.6%
$0.4 billion – $0.75 billion 5.1%
$0.75 billion – $1.5 billion 11.7%
$1.5 billion – $7.5 billion 71.5%
$7.5 billion – $15 billion 9.4%
$15 billion – $50 billion 1.7%

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.

Effective March 7, 2025, Newton Investment Management, North America LLC was terminated. Westwood Management Corp. (Westwood) began managing assets on March 28, 2025.

Investing in small-capitalization stocks may involve greater volatility and lower liquidity than larger company stocks. Investing in value stocks may limit downside risk over time; however, the Fund may produce more modest gains than riskier stock funds as a trade-off for this potentially lower risk. Investing in foreign markets may involve heightened risk due to currency fluctuations and economic and political risks. To the extent the Fund invests more heavily in particular sectors, its performance will be sensitive to factors affecting those sectors. Financial sector companies are heavily regulated and particularly sensitive to interest rate fluctuations. The Fund’s incorporation of environmental, social and/or governance (ESG) considerations in its investment strategy may cause it to underperform funds that do not incorporate these considerations. 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.

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