497

 

December 4, 2018

VIAEDGAR

U.S. Securities and Exchange Commission

100 F St. N.E.

WASHINGTON, D.C. 20549

RE:	American Beacon Funds (the “Registrant”)
	(File Nos. 033-11387 and 811-04984)

Ladies and Gentlemen:

Enclosed for filing on behalf of American Beacon Funds (the “Trust”) pursuant to Rule 497(e) under the Securities Act of 1933, as amended, is an exhibit containing interactive data format risk/return summary information for the American Beacon Ionic Strategic Arbitrage Fund, a separate series of the Trust.  The exhibit reflects updated risk/return summary information for the Fund, as filed with the Securities and Exchange Commission pursuant to Rule 497(e) on November 29, 2018 (Accession Number:  0000809593-18-000062), which is incorporated herein by reference.

If you have any questions concerning the foregoing, please contact Rosemary K. Behan at (817) 391-6170.

Regards,

/s/ Rosemary K. Behan

Rosemary K. Behan

Vice President

American Beacon Funds

Attachment

cc: Kathy K. Ingber, Esq. K&L Gates LLP

[American Beacon LOGO]

 

XML

Label	Element	Value
Prospectus:	rr_ProspectusTable
Document Type	dei_DocumentType	497
Document Period End Date	dei_DocumentPeriodEndDate	Dec. 31, 2017
Registrant Name	dei_EntityRegistrantName	AMERICAN BEACON FUNDS
Central Index Key	dei_EntityCentralIndexKey	0000809593
Amendment Flag	dei_AmendmentFlag	false
Document Creation Date	dei_DocumentCreationDate	Nov. 29, 2018
Document Effective Date	dei_DocumentEffectiveDate	Nov. 29, 2018
Prospectus Date	rr_ProspectusDate	Apr. 30, 2018

XML

Nov. 29, 2018

American Beacon Ionic Strategic Arbitrage Fund

Supplement dated November 29, 2018

to the

Prospectus and Summary Prospectus dated April 30, 2018

On November 6, 2018, the Board of Trustees of American Beacon Funds (the "Trust") approved: (i) an amendment to the existing investment advisory agreement among American Beacon Advisors, Inc., Ionic Capital Management LLC ("Ionic") and the Trust, on behalf of the American Beacon Ionic Strategic Arbitrage Fund (the "Fund"), whereby the fee rate payable to Ionic by the Fund with respect to the first $100 million in assets under management will be reduced by 0.20%, effective on or about December 1, 2018; and (ii) the lowering of the contractual expense ratio caps for all classes of the Fund, effective on or about December 1, 2018. Accordingly, the changes set forth below are effective on or about December 1, 2018:

1. In the "Fund Summary – Fees and Expenses of the Fund" section, the tables below the first paragraph are deleted and replaced with the following:

Shareholder Fees (fees paid directly from your investment)
Share Class	A	C	Y	Institutional	Investor
Maximum sales charge imposed on purchases (as a percentage of offering price)	4.75%	None	None	None	None
Maximum deferred sales charge (as a percentage of the lower of original offering price or redemption proceeds)	0.50%1	1.00%	None	None	None

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Share Class	A	C	Y	Institutional	Investor
Management Fee2	1.15%	1.15%	1.15%	1.15%	1.15%
Distribution and/or Services (12b-1) Fees	0.25%	1.00%	0.00%	0.00%	0.00%
Other Expenses	1.63%	1.40%	1.59%	1.32%	1.65%
Dividend & Interest Expense on Securities Sold Short	1.05%	1.05%	1.05%	1.05%	1.05%
Remainder of Other Expenses (including service fees)	0.58%	0.35%	0.54%	0.27%	0.60%
Acquired Fund Fees and Expenses	0.15%	0.15%	0.15%	0.15%	0.15%
Total Annual Fund Operating Expenses3	3.18%	3.70%	2.89%	2.62%	2.95%
Fee waiver and/or Expense Reimbursement or Recoupment4	(0.24%)	(0.01%)	(0.25%)	(0.08%)	(0.03)%
Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement or recoupment	2.94%	3.69%	2.64%	2.54%	2.92%

1	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.
2	The management fee has been restated to reflect a reduction in the contractual management fee.
3	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 and Dividend & Interest Expenses on Securities Sold Short.
4	American Beacon Advisors, Inc. (the "Manager") has contractually agreed to waive fees and/or reimburse expenses of the Fund's A Class, C Class, Y Class, Institutional Class and Investor Class shares, as applicable, through April 30, 2020 to the extent that Total Annual Fund Operating Expenses exceed 1.74% for the A Class, 2.49% for the C Class, 1.44% for the Y Class, 1.34% for the Institutional Class and 1.72% for the Investor Class (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses). The contractual expense reimbursement can be changed or terminated only in the discretion and 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 waivers or expense reimbursements if reimbursement to the Manager (a) occurs within three years after the Manager's own waiver or reimbursement and (b) does not cause the Total Annual Fund Operating Expenses of a class to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or the time of the recoupment.

2. The "Fund Summaries – Fees and Expenses of the Fund - Example" section is deleted and replaced with the following:

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 Fund's operating expenses remain the same, except that this Example reflects the fee waiver/expense reimbursement arrangement for each share class through April 30, 2020. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Share Class	1 Year	3 Years	5 Years	10 Years
A	$758	$1,378	$2,032	$3,772
C	$471	$1,130	$1,910	$3,949
Y	$267	$861	$1,492	$3,188
Institutional	$257	$804	$1,380	$2,945
Investor	$295	$908	$1,549	$3,268

Assuming no redemption of shares:

Share Class	1 Year	3 Years	5 Years	10 Years
C	$371	$1,130	$1,910	$3,949

XML

Label

Element

Value

Prospectus:

rr_ProspectusTable

Supplement Text Block

ablstrarb-20181129_SupplementTextBlock

American Beacon Ionic Strategic Arbitrage Fund

Supplement dated November 29, 2018

to the

Prospectus and Summary Prospectus dated April 30, 2018

On November 6, 2018, the Board of Trustees of American Beacon Funds (the "Trust") approved: (i) an amendment to the existing investment advisory agreement among American Beacon Advisors, Inc., Ionic Capital Management LLC ("Ionic") and the Trust, on behalf of the American Beacon Ionic Strategic Arbitrage Fund (the "Fund"), whereby the fee rate payable to Ionic by the Fund with respect to the first $100 million in assets under management will be reduced by 0.20%, effective on or about December 1, 2018; and (ii) the lowering of the contractual expense ratio caps for all classes of the Fund, effective on or about December 1, 2018. Accordingly, the changes set forth below are effective on or about December 1, 2018:

1. In the "Fund Summary – Fees and Expenses of the Fund" section, the tables below the first paragraph are deleted and replaced with the following:

Shareholder Fees (fees paid directly from your investment)
Share Class	A	C	Y	Institutional	Investor
Maximum sales charge imposed on purchases (as a percentage of offering price)	4.75%	None	None	None	None
Maximum deferred sales charge (as a percentage of the lower of original offering price or redemption proceeds)	0.50%1	1.00%	None	None	None

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Share Class	A	C	Y	Institutional	Investor
Management Fee2	1.15%	1.15%	1.15%	1.15%	1.15%
Distribution and/or Services (12b-1) Fees	0.25%	1.00%	0.00%	0.00%	0.00%
Other Expenses	1.63%	1.40%	1.59%	1.32%	1.65%
Dividend & Interest Expense on Securities Sold Short	1.05%	1.05%	1.05%	1.05%	1.05%
Remainder of Other Expenses (including service fees)	0.58%	0.35%	0.54%	0.27%	0.60%
Acquired Fund Fees and Expenses	0.15%	0.15%	0.15%	0.15%	0.15%
Total Annual Fund Operating Expenses3	3.18%	3.70%	2.89%	2.62%	2.95%
Fee waiver and/or Expense Reimbursement or Recoupment4	(0.24%)	(0.01%)	(0.25%)	(0.08%)	(0.03)%
Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement or recoupment	2.94%	3.69%	2.64%	2.54%	2.92%

1	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.
2	The management fee has been restated to reflect a reduction in the contractual management fee.
3	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 and Dividend & Interest Expenses on Securities Sold Short.
4	American Beacon Advisors, Inc. (the "Manager") has contractually agreed to waive fees and/or reimburse expenses of the Fund's A Class, C Class, Y Class, Institutional Class and Investor Class shares, as applicable, through April 30, 2020 to the extent that Total Annual Fund Operating Expenses exceed 1.74% for the A Class, 2.49% for the C Class, 1.44% for the Y Class, 1.34% for the Institutional Class and 1.72% for the Investor Class (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses). The contractual expense reimbursement can be changed or terminated only in the discretion and 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 waivers or expense reimbursements if reimbursement to the Manager (a) occurs within three years after the Manager's own waiver or reimbursement and (b) does not cause the Total Annual Fund Operating Expenses of a class to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or the time of the recoupment.

2. The "Fund Summaries – Fees and Expenses of the Fund - Example" section is deleted and replaced with the following:

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 Fund's operating expenses remain the same, except that this Example reflects the fee waiver/expense reimbursement arrangement for each share class through April 30, 2020. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Share Class	1 Year	3 Years	5 Years	10 Years
A	$758	$1,378	$2,032	$3,772
C	$471	$1,130	$1,910	$3,949
Y	$267	$861	$1,492	$3,188
Institutional	$257	$804	$1,380	$2,945
Investor	$295	$908	$1,549	$3,268

Assuming no redemption of shares:

Share Class	1 Year	3 Years	5 Years	10 Years
C	$371	$1,130	$1,910	$3,949

(American Beacon Funds - Supplement) | (American Beacon Ionic Strategic Arbitrage Fund)

Prospectus:

rr_ProspectusTable

Shareholder Fees Caption [Text]

rr_ShareholderFeesCaption

<p style="font-size:10pt;padding-top:2;padding-bottom:0;padding-left:0;"><b>Shareholder Fees (fees paid directly from your investment)</b></p>

Operating Expenses Caption [Text]

rr_OperatingExpensesCaption

<p style="font-size:10pt;padding-top:2;padding-bottom:0;padding-left:0;"><b>Annual Fund Operating Expenses (Expenses that you pay each year as a percentage of the value of your investment)</b></p>

Fee Waiver or Reimbursement over Assets, Date of Termination

rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination

April 30, 2020

Expenses Deferred Charges [Text Block]

rr_ExpensesDeferredChargesTextBlock

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.

Expense Example [Heading]

rr_ExpenseExampleHeading

<p style="font-size:10pt;padding-top:2;padding-bottom:0;padding-left:0;"><b>Example</b></p>

Expense Example Narrative [Text Block]

rr_ExpenseExampleNarrativeTextBlock

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, except that this Example reflects the fee waiver/expense reimbursement arrangement for each share class through April 30, 2020. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Expense Example, No Redemption, By Year, Caption [Text]

rr_ExpenseExampleNoRedemptionByYearCaption

<p style="font-size:10pt;padding-top:2;padding-bottom:0;padding-left:0;"><b>Assuming no redemption of shares:</b></p>

(American Beacon Funds - Supplement) | (American Beacon Ionic Strategic Arbitrage Fund) | Class A

Prospectus:

rr_ProspectusTable

Maximum sales charge imposed on purchases (as a percentage of offering price)

rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice

4.75%

Maximum deferred sales charge (as a percentage of the lower of original offering price or redemption proceeds)

rr_MaximumDeferredSalesChargeOverOther

0.50%

^[1]

Management Fee

rr_ManagementFeesOverAssets

1.15%

^[2]

Distribution and/or Services (12b-1) Fees

rr_DistributionAndService12b1FeesOverAssets

0.25%

Other Expenses

rr_OtherExpensesOverAssets

1.63%

Dividend & Interest Expense on Securities Sold Short

rr_Component1OtherExpensesOverAssets

1.05%

Remainder of Other Expenses (including service fees)

rr_Component2OtherExpensesOverAssets

0.58%

Acquired Fund Fees and Expenses

rr_AcquiredFundFeesAndExpensesOverAssets

0.15%

Total Annual Fund Operating Expenses

rr_ExpensesOverAssets

3.18%

^[3]

Fee waiver and/or Expense Reimbursement or Recoupment

rr_FeeWaiverOrReimbursementOverAssets

(0.24%)

^[4]

Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement or recoupment

rr_NetExpensesOverAssets

2.94%

Expense Example, with Redemption, 1 Year

rr_ExpenseExampleYear01

$ 758

Expense Example, with Redemption, 3 Years

rr_ExpenseExampleYear03

1,378

Expense Example, with Redemption, 5 Years

rr_ExpenseExampleYear05

2,032

Expense Example, with Redemption, 10 Years

rr_ExpenseExampleYear10

$ 3,772

(American Beacon Funds - Supplement) | (American Beacon Ionic Strategic Arbitrage Fund) | Class C

Prospectus:

rr_ProspectusTable

Maximum sales charge imposed on purchases (as a percentage of offering price)

rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice

none

Maximum deferred sales charge (as a percentage of the lower of original offering price or redemption proceeds)

rr_MaximumDeferredSalesChargeOverOther

1.00%

Management Fee

rr_ManagementFeesOverAssets

1.15%

^[2]

Distribution and/or Services (12b-1) Fees

rr_DistributionAndService12b1FeesOverAssets

1.00%

Other Expenses

rr_OtherExpensesOverAssets

1.40%

Dividend & Interest Expense on Securities Sold Short

rr_Component1OtherExpensesOverAssets

1.05%

Remainder of Other Expenses (including service fees)

rr_Component2OtherExpensesOverAssets

0.35%

Acquired Fund Fees and Expenses

rr_AcquiredFundFeesAndExpensesOverAssets

0.15%

Total Annual Fund Operating Expenses

rr_ExpensesOverAssets

3.70%

^[3]

Fee waiver and/or Expense Reimbursement or Recoupment

rr_FeeWaiverOrReimbursementOverAssets

(0.01%)

^[4]

Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement or recoupment

rr_NetExpensesOverAssets

3.69%

Expense Example, with Redemption, 1 Year

rr_ExpenseExampleYear01

$ 471

Expense Example, with Redemption, 3 Years

rr_ExpenseExampleYear03

1,130

Expense Example, with Redemption, 5 Years

rr_ExpenseExampleYear05

1,910

Expense Example, with Redemption, 10 Years

rr_ExpenseExampleYear10

3,949

Expense Example, No Redemption, 1 Year

rr_ExpenseExampleNoRedemptionYear01

371

Expense Example, No Redemption, 3 Years

rr_ExpenseExampleNoRedemptionYear03

1,130

Expense Example, No Redemption, 5 Years

rr_ExpenseExampleNoRedemptionYear05

1,910

Expense Example, No Redemption, 10 Years

rr_ExpenseExampleNoRedemptionYear10

$ 3,949

(American Beacon Funds - Supplement) | (American Beacon Ionic Strategic Arbitrage Fund) | Class Y

Prospectus:

rr_ProspectusTable

Maximum sales charge imposed on purchases (as a percentage of offering price)

rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice

none

Maximum deferred sales charge (as a percentage of the lower of original offering price or redemption proceeds)

rr_MaximumDeferredSalesChargeOverOther

none

Management Fee

rr_ManagementFeesOverAssets

1.15%

^[2]

Distribution and/or Services (12b-1) Fees

rr_DistributionAndService12b1FeesOverAssets

none

Other Expenses

rr_OtherExpensesOverAssets

1.59%

Dividend & Interest Expense on Securities Sold Short

rr_Component1OtherExpensesOverAssets

1.05%

Remainder of Other Expenses (including service fees)

rr_Component2OtherExpensesOverAssets

0.54%

Acquired Fund Fees and Expenses

rr_AcquiredFundFeesAndExpensesOverAssets

0.15%

Total Annual Fund Operating Expenses

rr_ExpensesOverAssets

2.89%

^[3]

Fee waiver and/or Expense Reimbursement or Recoupment

rr_FeeWaiverOrReimbursementOverAssets

(0.25%)

^[4]

Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement or recoupment

rr_NetExpensesOverAssets

2.64%

Expense Example, with Redemption, 1 Year

rr_ExpenseExampleYear01

$ 267

Expense Example, with Redemption, 3 Years

rr_ExpenseExampleYear03

861

Expense Example, with Redemption, 5 Years

rr_ExpenseExampleYear05

1,492

Expense Example, with Redemption, 10 Years

rr_ExpenseExampleYear10

$ 3,188

(American Beacon Funds - Supplement) | (American Beacon Ionic Strategic Arbitrage Fund) | Institutional Class

Prospectus:

rr_ProspectusTable

Maximum sales charge imposed on purchases (as a percentage of offering price)

rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice

none

Maximum deferred sales charge (as a percentage of the lower of original offering price or redemption proceeds)

rr_MaximumDeferredSalesChargeOverOther

none

Management Fee

rr_ManagementFeesOverAssets

1.15%

^[2]

Distribution and/or Services (12b-1) Fees

rr_DistributionAndService12b1FeesOverAssets

none

Other Expenses

rr_OtherExpensesOverAssets

1.32%

Dividend & Interest Expense on Securities Sold Short

rr_Component1OtherExpensesOverAssets

1.05%

Remainder of Other Expenses (including service fees)

rr_Component2OtherExpensesOverAssets

0.27%

Acquired Fund Fees and Expenses

rr_AcquiredFundFeesAndExpensesOverAssets

0.15%

Total Annual Fund Operating Expenses

rr_ExpensesOverAssets

2.62%

^[3]

Fee waiver and/or Expense Reimbursement or Recoupment

rr_FeeWaiverOrReimbursementOverAssets

(0.08%)

^[4]

Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement or recoupment

rr_NetExpensesOverAssets

2.54%

Expense Example, with Redemption, 1 Year

rr_ExpenseExampleYear01

$ 257

Expense Example, with Redemption, 3 Years

rr_ExpenseExampleYear03

804

Expense Example, with Redemption, 5 Years

rr_ExpenseExampleYear05

1,380

Expense Example, with Redemption, 10 Years

rr_ExpenseExampleYear10

$ 2,945

(American Beacon Funds - Supplement) | (American Beacon Ionic Strategic Arbitrage Fund) | Investor Class

Prospectus:

rr_ProspectusTable

Maximum sales charge imposed on purchases (as a percentage of offering price)

rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice

none

Maximum deferred sales charge (as a percentage of the lower of original offering price or redemption proceeds)

rr_MaximumDeferredSalesChargeOverOther

none

Management Fee

rr_ManagementFeesOverAssets

1.15%

^[2]

Distribution and/or Services (12b-1) Fees

rr_DistributionAndService12b1FeesOverAssets

none

Other Expenses

rr_OtherExpensesOverAssets

1.65%

Dividend & Interest Expense on Securities Sold Short

rr_Component1OtherExpensesOverAssets

1.05%

Remainder of Other Expenses (including service fees)

rr_Component2OtherExpensesOverAssets

0.60%

Acquired Fund Fees and Expenses

rr_AcquiredFundFeesAndExpensesOverAssets

0.15%

Total Annual Fund Operating Expenses

rr_ExpensesOverAssets

2.95%

^[3]

Fee waiver and/or Expense Reimbursement or Recoupment

rr_FeeWaiverOrReimbursementOverAssets

(0.03%)

^[4]

Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement or recoupment

rr_NetExpensesOverAssets

2.94%

Expense Example, with Redemption, 1 Year

rr_ExpenseExampleYear01

$ 295

Expense Example, with Redemption, 3 Years

rr_ExpenseExampleYear03

908

Expense Example, with Redemption, 5 Years

rr_ExpenseExampleYear05

1,549

Expense Example, with Redemption, 10 Years

rr_ExpenseExampleYear10

$ 3,268

[1] 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.

[2] The management fee has been restated to reflect a reduction in the contractual management fee.

[3] 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 and Dividend & Interest Expenses on Securities Sold Short.

[4] American Beacon Advisors, Inc. (the "Manager") has contractually agreed to waive fees and/or reimburse expenses of the Fund's A Class, C Class, Y Class, Institutional Class and Investor Class shares, as applicable, through April 30, 2020 to the extent that Total Annual Fund Operating Expenses exceed 1.74% for the A Class, 2.49% for the C Class, 1.44% for the Y Class, 1.34% for the Institutional Class and 1.72% for the Investor Class (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses). The contractual expense reimbursement can be changed or terminated only in the discretion and 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 waivers or expense reimbursements if reimbursement to the Manager (a) occurs within three years after the Manager's own waiver or reimbursement and (b) does not cause the Total Annual Fund Operating Expenses of a class to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or the time of the recoupment.