UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-4984

AMERICAN BEACON FUNDS

(Exact name of registrant as specified in charter)

220 East Las Colinas Boulevard, Suite 1200

Irving, Texas 75039

(Address of principal executive offices)-(Zip code)

GENE L. NEEDLES, JR., PRESIDENT

220 East Las Colinas Boulevard, Suite 1200

Irving, Texas 75039

(Name and address of agent for service)

Registrant’s telephone number, including area code: (817) 391-6100

Date of fiscal year end: January 31, 2019

Date of reporting period: July 31, 2019

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

ITEM 1. REPORTS TO STOCKHOLDERS.

About American Beacon Advisors

Since 1986, American Beacon Advisors has offered a variety of products and investment advisory services to numerous institutional and retail clients, including a variety of mutual funds, corporate cash management, and separate account management.

Our clients include defined benefit plans, defined contribution plans, foundations, endowments, corporations, financial planners, and other institutional investors. With American Beacon Advisors, you can put the experience of a multi-billion-dollar asset management firm to work for your company.

ACADIAN EMERGING MARKETS MANAGED VOLATILITY FUND

Investing in foreign and emerging market securities may involve heightened risk due to currency fluctuations and economic and political risks. Investing in lower volatility securities may produce more modest gains than other stock funds as a trade-off for the potentially lower downside risk. 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.

Any opinions herein, including forecasts, reflect our judgment as of the end of the reporting period and are subject to change. Each advisor’s strategies and each Fund’s portfolio composition will change depending on economic and market conditions. This report is not a complete analysis of market conditions, and, therefore, should not be relied upon as investment advice. Although economic and market information has been compiled from reliable sources, American Beacon Advisors, Inc. makes no representation as to the completeness or accuracy of the statements contained herein.

American Beacon Funds July 31, 2019

Contents

President’s Message	1
Performance Overview	2
Expense Examples	4
Schedule of Investments:
American Beacon Acadian Emerging Markets Managed Volatility Fund	6
Financial Statements	14
Notes to Financial Statements	17
Financial Highlights:
American Beacon Acadian Emerging Markets Managed Volatility Fund	38
Disclosure Regarding Approval of the Management and Investment Advisory Agreements	43

Additional Fund Information Back Cover

President’s Message

Dear Shareholders,   At American Beacon, we take our heritage as a fiduciary very seriously – and we apply that mindset to all aspects of our business as a fund manager. As a result, for more than 30 years, we have endeavored to:   u   Identify, engage and oversee the best money managers. As a manager of managers, our goal is to engage the most effective money managers for each asset class, investment style and market strategy we offer. We are committed to partnering with those we judge to be “the best of the best” when it comes to choosing sub-advisors for our mutual funds. Whether our due-diligence process results in the selection of one sub-advisor or multiple sub-advisors, we select those we believe show the greatest potential to help us meet the high standards you’ve come to expect.

u Offer a variety of innovative investment solutions. Our mutual funds – which span the domestic, international, global, frontier and emerging markets – are sub-advised by experienced money managers who employ distinctive, proprietary investment processes to manage assets through a variety of economic and market conditions. From offering some of the first multi-manager funds, one of the first retirement income funds and the first open-ended mutual fund in the U.S. to focus primarily on frontier-market debt, our robust history includes applying a disciplined, solutions-based approach to our product development process in an effort to help you grow your assets while mitigating risk.

u Provide a solutions-based approach to achieving long-term investment goals. We seek to provide investment solutions that might enable you to benefit from taking a more disciplined approach to investing. Our mutual funds provide access to institutional-quality, research-intensive investment managers with diverse processes and styles. Over the long run, having such access and spending time in the market – rather than trying to time the market – may better position you to reach your long-term investment goals during market upswings and potentially insulate against market downswings.

Our management approach is more than a concept; it’s the cornerstone of American Beacon’s culture. And we strive to employ it at every turn as we seek to provide a well-diversified line of investment solutions to help our shareholders seek long-term rewards.

Thank you for your continued interest in American Beacon. For additional information about our mutual funds or to access your account information, please visit our website at www.americanbeaconfunds.com.

Best Regards,

Gene L. Needles, Jr.

President

American Beacon Funds

1

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Performance Overview

July 31, 2019 (Unaudited)

The Investor Class of the American Beacon Acadian Emerging Markets Managed Volatility Fund (the “Fund”) returned -0.86% for the six months ended July 31, 2019. The Fund underperformed the MSCI Emerging Markets Index (the “Index”) return of 0.44% for the period.

Average Annual Total Returns for the Period ended July 31, 2019
	Ticker	6 Months*			1 Year			3 Years			5 Years			Since Inception 9/27/2013
Institutional Class (1,3)	ACDIX		(0.66	)%		1.94	%		6.82	%		1.19	%		2.85	%
Y Class (1,3)	ACDYX		(0.76	)%		1.86	%		6.71	%		1.10	%		2.75	%
Investor Class (1,3)	ACDPX		(0.86	)%		1.58	%		6.41	%		0.84	%		2.48	%
A without Sales Charge (1,3)	ACDAX		(0.86	)%		1.58	%		6.39	%		0.81	%		2.43	%
A with Sales Charge (1,3)	ACDAX		(6.56	)%		(4.28	)%		4.33	%		(0.37	)%		1.40	%
C without Sales Charge (1,3)	ACDCX		(1.15	)%		0.85	%		5.59	%		0.05	%		1.67	%
C with Sales Charge (1,3)	ACDCX		(2.15	)%		(0.15	)%		5.59	%		0.05	%		1.67	%
MSCI Emerging Markets Index (2)			0.44	%		(2.18	)%		8.42	%		1.84	%		3.05	%

* Not Annualized.

1. 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 calculated based on the published end of day net asset values as of the 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, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights. A portion of the fees charged to each Class of the Fund has been waived since Fund inception. Performance prior to waiving fees was lower than the actual returns shown since inception. A Class shares have a maximum sales charge of 5.75%. The maximum contingent deferred sales charge for the C Class is 1.00% for shares redeemed within one year of the date of purchase.

2. The MSCI Emerging Markets Index is a market capitalization weighted index composed of companies that are representative of the market structure of developing countries in Latin America, Asia, Eastern Europe, the Middle East and Africa. The MSCI^® information contained herein: (1) is provided “as is,” (2) is proprietary to MSCI and/or its content providers, (3) may not be used to create any financial instruments or products or any indexes and (4) may not be copied or distributed without MSCI’s express written consent. MSCI disclaims all warranties with respect to the information. Neither MSCI nor its content providers are responsible for any damages or losses arising from any use of this information. One cannot directly invest in an index. The Lipper Emerging Markets Funds Index tracks the results of the 30 largest mutual funds in the Lipper Emerging Markets Funds category. Lipper is an independent mutual fund research and ranking service.

3. The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the Institutional, Y, Investor, A, and C Class shares were 1.71%, 1.76%, 2.15%, 2.02% and 2.77%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

The Fund underperformed the Index over the six-month period due to stock selection despite value added through country allocation.

Stock selections in China were the primary reason for the Fund’s underperformance for the period. China Telecom Corp. Ltd., Class H (down 14.7%) and China Unicom Hong Kong Ltd. (down 14.6%) detracted from relative performance.

Stock selections in Korea, Chile and Brazil contributed positively to the Fund’s relative performance for the period. In Korea, contributors included Kia Motors Corp. (up 17.7%), while in Chile, Vina Concha y Toro S/A (up 2.4%) contributed to the Fund’s relative returns. In Brazil, a primary contributor was IRB Brasil Resseguros S/A (up 5.5%).

Relative contribution from country allocation was positive for the six-month period, primarily due to overweighting Greece (up 22.9%) and underweighting Korea (down 11.6%). Overweighting Chile (down 16.8%) detracted from the Fund’s relative performance during the period.

The Fund’s philosophy remains focused on investing in a well-diversified portfolio of low volatility stocks that aims to maximize risk-adjusted returns.

2

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Performance Overview

July 31, 2019 (Unaudited)

Top Ten Holdings (% Net Assets)
China Construction Bank Corp., Class H		1.9
Ping An Insurance Group Co. of China Ltd., Class H		1.8
China Yangtze Power Co., Ltd., Class A		1.6
Agricultural Bank of China Ltd., Class H		1.5
Bank of China Ltd., Class H		1.5
Hellenic Telecommunications Organization S.A.		1.5
Krung Thai Bank PCL, NVDR		1.5
KT Corp.		1.5
Manila Electric Co.		1.5
Tata Consultancy Services Ltd.		1.5
Total Fund Holdings	210
Sector Allocation (% Equities)
Financials		24.0
Consumer Staples		20.7
Communication Services		16.0
Utilities		14.3
Information Technology		7.3
Industrials		7.0
Energy		4.5
Consumer Discretionary		4.1
Materials		1.0
Health Care		0.8
Real Estate		0.3
Country Allocation (% Equities)
China		25.6
India		12.8
Republic of Korea		8.8
Taiwan		8.3
Thailand		6.0
Brazil		5.3
Malaysia		5.0
Philippines		3.8
Chile		3.6
Mexico		3.5
South Africa		3.3
Russia		3.0
Egypt		2.8
Czech Republic		2.6
Greece		2.5
Hungary		1.6
Indonesia		0.4
Hong Kong		0.3
Poland		0.3
United Kingdom		0.2
Panama		0.1
Peru		0.1
Turkey		0.1

3

American Beacon Fund^SM

Expense Examples

July 31, 2019 (Unaudited)

Fund Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees, if applicable, and (2) ongoing costs, including management fees, distribution (12b-1) fees, sub-transfer agent fees, and other Fund expenses. The Examples are intended to help you understand the ongoing cost (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from February 1, 2019 through July 31, 2019.

Actual Expenses

The “Actual” lines of the tables provide information about actual account values and actual expenses. You may use the information on this page, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = $8.60), then multiply the result by the “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. Shareholders of the Investor and Institutional Classes that invest in the Funds through an IRA or Roth IRA may be subject to a custodial IRA fee of $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 higher.

Hypothetical Example for Comparison Purposes

The “Hypothetical” lines of the tables provide information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed 5% per year rate of return before expenses (not the Funds’ actual return). You may compare the ongoing costs of investing in the Funds with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Shareholders of the Investor and Institutional Classes that invest in the Funds through an IRA or Roth IRA may be subject to a custodial IRA fee of $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 higher.

You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs charged by the Funds, such as sales charges (loads) or redemption fees, as applicable. Similarly, the expense examples for other funds do not reflect any transaction costs charged by those funds, such as sales charges (loads), redemption fees or exchange fees. Therefore, the “Hypothetical” lines of the tables are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If you were subject to any transaction costs during the period, your costs would have been higher.

4

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Expense Examples

July 31, 2019 (Unaudited)

American Beacon Acadian Emerging Markets Managed Volatility Fund
	Beginning Account Value 2/1/2019		Ending Account Value 7/31/2019		Expenses Paid During Period 2/1/2019-7/31/2019*
Institutional Class
Actual		$1,000.00		$993.40		$6.67
Hypothetical**		$1,000.00		$1,018.10		$6.76
Y Class
Actual		$1,000.00		$992.40		$7.16
Hypothetical**		$1,000.00		$1,017.60		$7.25
Investor Class
Actual		$1,000.00		$991.40		$8.54
Hypothetical**		$1,000.00		$1,016.22		$8.65
A Class
Actual		$1,000.00		$991.40		$8.64
Hypothetical**		$1,000.00		$1,016.12		$8.75
C Class
Actual		$1,000.00		$988.50		$12.33
Hypothetical**		$1,000.00		$1,012.40		$12.47

* Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 1.35%, 1.45%, 1.73%, 1.75%, and 2.50% for the Institutional, Y, Investor, A, and C Classes, respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half-year period.

** 5% return before expenses.

5

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Shares		Fair Value
Brazil - 5.26%
Common Stocks - 4.50%
Alupar Investimento S.A.A		3,700		$	25,702
Atacadao S.A.		40,500			248,432
BrasilAgro - Co. Brasileira de Propriedades Agricolas		1,274			5,572
Cia de Transmissao de Energia Eletrica Paulista		1,200			7,609
Construtora Tenda S.A.		9,800			65,071
CPFL Energia S.A.		20,300			171,439
Grupo SBF S.A.B		14,016			62,765
IRB Brasil Resseguros S/A		6,200			154,336
Telefonica Brasil S.A., ADR		11,335			154,609
Transmissora Alianca de Energia Eletrica S.A.A		2,400			17,495
Total Common Stocks					913,030
Preferred Stocks - 0.76%
Centrais Eletricas Santa CatarinaC		900			10,959
Telefonica Brasil S.A.C		10,400			142,523
Total Preferred Stocks					153,482
Total Brazil (Cost $794,926)					1,066,512
Chile - 3.53%
Common Stocks - 3.53%
Banco de Chile		4,737			680
Blumar S.A.		68,358			33,499
Cia Cervecerias Unidas S.A.		1,442			20,216
Cia Cervecerias Unidas S.A., Sponsored ADR		10,140			283,514
Embotelladora Andina S.A., Class B, ADR		3,715			78,386
Empresas COPEC S.A.		442			4,056
Enel Chile S.A.		2,043,335			185,202
Inversiones Aguas Metropolitanas S.A.		6,607			9,648
Minera Valparaiso S.A.		54			1,028
Quinenco S.A.		1,735			4,682
Sigdo Koppers S.A.		10,378			18,132
SMU S.A.		133,755			34,291
Vina Concha y Toro S.A.		21,542			43,297
Total Common Stocks					716,631
Total Chile (Cost $681,346)					716,631
China - 25.26%
Common Stocks - 25.26%
Agricultural Bank of China Ltd., Class HD		745,000			302,315
Bank of China Ltd., Class HD		752,000			305,219
Bank of Communications Co., Ltd., Class HD		378,000			274,866
Bank of Gansu Co., Ltd., Class HD		24,000			5,730
Beijing Chunlizhengda Medical Instruments Co., Ltd., Class HD		60,800			150,720
Beijing Jingkelong Co., Ltd., Class HD		69,000			12,673
Changshouhua Food Co., Ltd.D		19,000			6,714
China CITIC Bank Corp. Ltd., Class HD		33,000			18,340
China Construction Bank Corp., Class HD		490,000			377,240
China Everbright Bank Co., Ltd., Class HD		239,000			107,835
China Minsheng Banking Corp. Ltd., Class HD		422,000			289,827
China Mobile Ltd.D		34,500			293,669
China Petroleum & Chemical Corp., Class HD		402,000			258,959
China Railway Group Ltd., Class HD		59,000			41,444
China Telecom Corp. Ltd., Class HD		626,000			280,584
China Unicom Hong Kong Ltd.D		286,000			277,094
China Yangtze Power Co., Ltd., Class AD		118,100			321,146

See accompanying notes

6

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Shares		Fair Value
China - 25.26% (continued)
Common Stocks - 25.26% (continued)
CITIC Ltd.D		218,000		$	287,860
CNOOC Ltd.D		5,000			8,223
COSCO SHIPPING International Hong Kong Co., Ltd.D		240,000			74,946
Fuguiniao Co., Ltd., Class HB D E		28,000			-
Huishang Bank Corp. Ltd., Class HD		397,100			154,008
Industrial & Commercial Bank of China Ltd., Class HD		412,000			277,323
Jiangsu Expressway Co., Ltd., Class HD		150,000			202,263
NVC Lighting Holding Ltd.B D		1,481,000			134,103
PetroChina Co., Ltd., Class HD		564,000			298,920
Ping An Insurance Group Co. of China Ltd., Class HD		31,000			367,684
Total Common Stocks					5,129,705
Total China (Cost $5,216,972)					5,129,705
Czech Republic - 2.59%
Common Stocks - 2.59%
CEZ A/SD		12,088			271,185
Komercni banka A/SD		3,272			126,049
Philip Morris CR A/SD		219			128,828
Total Common Stocks					526,062
Total Czech Republic (Cost $459,942)					526,062
Egypt - 2.72%
Common Stocks - 2.72%
Commercial International Bank Egypt SAED		36,416			161,699
Credit Agricole Egypt SAED		13,945			36,607
Eastern Co. SAED		162,483			155,414
Faisal Islamic Bank of EgyptD		48,044			43,178
MM Group for Industry & International Trade SAEB D		90			56
Telecom Egypt Co.D		184,372			156,076
Total Common Stocks					553,030
Total Egypt (Cost $389,455)					553,030
Greece - 2.47%
Common Stocks - 2.47%
Aegean Airlines S.A.D		2,427			21,896
Hellenic Telecommunications Organization S.A.D		22,213			304,991
Terna Energy S.A.B D		20,642			165,631
Thessaloniki Water Supply & Sewage Co. S.A.D		1,610			10,062
Total Common Stocks					502,580
Total Greece (Cost $378,216)					502,580
Hong Kong - 0.26%
Common Stocks - 0.26%
Citychamp Watch & Jewellery Group Ltd.B D		166,958			34,719
Goldlion Holdings Ltd.D		46,000			17,492
Total Common Stocks					52,211
Total Hong Kong (Cost $55,927)					52,211
Hungary - 1.62%
Common Stocks - 1.62%
Magyar Telekom Telecommunications PLCD		198,581			287,095
MOL Hungarian Oil & Gas PLCD		2,320			23,608
OTP Bank NyrtD		282			11,755

See accompanying notes

7

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Shares		Fair Value
Hungary - 1.62% (continued)
Common Stocks - 1.62% (continued)
Richter Gedeon NyrtD		231		$	4,062
Zwack Unicum RtD		33			1,880
Total Common Stocks					328,400
Total Hungary (Cost $326,694)					328,400
India - 12.67%
Common Stocks - 12.67%
Accelya Solutions India Ltd.B D		1,005			11,394
Gillette India Ltd.D		362			37,517
GlaxoSmithKline Consumer Healthcare Ltd.D		2,073			221,867
Gujarat Industries Power Co., Ltd.D		7,676			7,786
HCL Technologies Ltd.D		11,548			173,106
Hinduja Global Solutions Ltd.D		805			6,925
Hindustan Unilever Ltd.D		10,568			264,288
Infosys Ltd.D		7,207			82,382
Infosys Ltd., Sponsored ADR		19,416			219,789
Nestle India Ltd.D		1,281			216,755
Oil & Natural Gas Corp. Ltd.D		12,477			24,983
Oracle Financial Services Software Ltd.D		5,183			255,309
Power Grid Corp. of India Ltd.D		78,116			240,179
Procter & Gamble Hygiene & Health Care Ltd.D		1,109			175,162
SJVN Ltd.D		73,801			26,389
Tata Consultancy Services Ltd.D		9,675			308,764
Vardhman Textiles Ltd.D		1,302			17,217
Wipro Ltd.D		57,715			223,409
Wipro Ltd., ADR		14,782			60,458
Total Common Stocks					2,573,679
Total India (Cost $2,011,521)					2,573,679
Indonesia - 0.36%
Common Stocks - 0.36%
Astra Graphia Tbk PTD		167,100			13,530
Indofood CBP Sukses Makmur Tbk PTD		11,200			8,520
Multipolar Technology Tbk PT		558,900			27,911
Telekomunikasi Indonesia Persero Tbk PTD		75,300			23,024
Total Common Stocks					72,985
Total Indonesia (Cost $103,192)					72,985
Malaysia - 4.89%
Common Stocks - 4.89%
Kuala Lumpur Kepong BhdD		43,800			249,546
Malayan Banking BhdD		41,600			87,086
Nestle Malaysia BhdD		4,200			151,215
Public Bank BhdD		46,300			245,483
Tenaga Nasional BhdD		77,728			260,001
Total Common Stocks					993,331
Total Malaysia (Cost $894,741)					993,331
Mexico - 3.43%
Common Stocks - 3.43%
Coca-Cola Femsa S.A.B. de C.V.A		31,499			193,789
Coca-Cola Femsa S.A.B. de C.V., Sponsored ADR		117			7,177
Fomento Economico Mexicano S.A.B. de C.V., Series B, Sponsored ADR		3,203			290,512
Industrias Bachoco S.A.B. de C.V., Series B		17,308			78,386

See accompanying notes

8

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Shares		Fair Value
Mexico - 3.43% (continued)
Common Stocks - 3.43% (continued)
Invex Controladora S.A.B. de C.V., Class A		1,177		$	4,176
Wal-Mart de Mexico S.A.B. de C.V.		41,394			122,149
Total Common Stocks					696,189
Total Mexico (Cost $716,557)					696,189
Panama - 0.13% (Cost $28,268)
Common Stocks - 0.13%
Intercorp Financial Services, Inc., Series INC		617			25,914
Peru - 0.14%
Common Stocks - 0.14%
Corp. Aceros Arequipa S.A.		90,277			20,222
Enel Generacion Peru S.A.A.		380			283
Engie Energia Peru S.A.		420			865
Luz del Sur S.A.A.		1,768			7,600
Total Common Stocks					28,970
Total Peru (Cost $27,869)					28,970
Philippines - 3.78%
Common Stocks - 3.78%
Aboitiz Power Corp.D		83,600			58,162
Asia United Bank Corp.D		19,880			22,690
China Banking Corp.D		51,412			27,139
Cosco Capital, Inc.D		261,300			35,239
Eagle Cement Corp.D		101,800			29,012
Emperador, Inc.B D		141,300			20,913
Globe Telecom, Inc.D		345			14,592
Manila Electric Co.D		42,030			301,333
Philippine National BankB D		57,309			55,815
Pilipinas Shell Petroleum Corp.D		5,480			4,135
RFM Corp.D		132,000			13,133
San Miguel Corp.D		40,887			142,871
Top Frontier Investment Holdings, Inc.B D		3,950			20,298
Union Bank of the PhilippinesD		19,531			23,082
Total Common Stocks					768,414
Total Philippines (Cost $680,688)					768,414
Poland - 0.28%
Common Stocks - 0.28%
Dom Development S.A.D		576			11,593
Netia S.A.B D		10,180			12,340
Stalexport Autostrady S.A.D		32,382			28,935
Zespol Elektrocieplowni Wroclawskich Kogeneracja S.A.D		373			3,308
Total Common Stocks					56,176
Total Poland (Cost $65,537)					56,176
Republic of Korea - 8.72%
Common Stocks - 8.72%
Busan City Gas Co., Ltd.D		989			30,445
BYC Co., Ltd.D		58			10,940
Daeduck Electronics Co.D		101			868
Daesung Energy Co., Ltd.D		8,294			37,673
DI Dong Il Corp.D		61			3,711
ESTec Corp.D		5,543			54,190

See accompanying notes

9

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Shares		Fair Value
Republic of Korea - 8.72% (continued)
Common Stocks - 8.72% (continued)
Fursys, Inc.D		1,250		$	31,911
GIIR, Inc.D		566			3,527
Incheon City Gas Co., Ltd.D		1,386			34,193
Jinro Distillers Co., Ltd.D		1,536			38,395
JLS Co., Ltd.D		17,215			107,298
KEC Holdings Co., Ltd.D		10,238			6,601
Kia Motors Corp.D		3,648			133,702
KT Corp.D		12,882			301,240
KT&G Corp.D		2,201			178,944
Macquarie Korea Infrastructure FundD		24,111			237,639
Namyang Dairy Products Co., Ltd.D		58			26,190
Pureun Mutual Savings BankD		510			3,560
RedcapTour Co., Ltd.D		1,544			22,487
Samsung Electronics Co., Ltd.D		1,047			39,946
Samwonsteel Co., Ltd.D		5,383			12,905
Samyang Tongsang Co., Ltd.D		868			43,002
SK Telecom Co., Ltd.D		1,386			289,865
Yesco Holdings Co., Ltd.D		2,705			92,708
Youngone Holdings Co., Ltd.D		671			29,850
Total Common Stocks					1,771,790
Total Republic of Korea (Cost $1,811,021)					1,771,790
Russia - 2.96%
Common Stocks - 2.96%
Gazprom Neft PJSC, Sponsored ADRD		8,178			274,018
MMC Norilsk Nickel PJSC, ADRD		3,784			87,368
Rostelecom PJSC, Sponsored ADRD		30,391			236,341
Severstal PJSC, GDRD		244			3,919
Total Common Stocks					601,646
Total Russia (Cost $435,408)					601,646
South Africa - 3.23%
Common Stocks - 2.95%
Clover Industries Ltd.D		54,461			87,247
Combined Motor Holdings Ltd.D		9,782			14,877
Distell Group Holdings Ltd.D		32,069			295,444
Motus Holdings Ltd.D		39,459			202,076
Total Common Stocks					599,644
Preferred Stocks - 0.28%
Absa Bank Ltd.C D		1,084			57,164
Total South Africa (Cost $681,745)					656,808
Taiwan - 8.17%
Common Stocks - 8.17%
104 Corp.D		3,000			16,311
Cathay No 1 REITD		12,000			5,950
Chung Hwa Food Industrial Co., Ltd.D		2,000			5,018
Chunghwa Telecom Co., Ltd.D		86,000			298,762
Dafeng TV Ltd.D		3,000			3,423
E-LIFE MALL Corp.D		834			1,732
ECOVE Environment Corp.D		5,000			32,838
Far EasTone Telecommunications Co., Ltd.D		51,000			117,235
First Financial Holding Co., Ltd.D		52,520			39,482
Fubon No 1 REITD		14,000			6,747

See accompanying notes

10

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Shares		Fair Value
Taiwan - 8.17% (continued)
Common Stocks - 8.17% (continued)
Great Taipei Gas Co., Ltd.D		91,000		$	85,123
Hey Song Corp.D		28,000			28,481
Hua Nan Financial Holdings Co., Ltd.D		320,000			225,586
Kedge Construction Co., Ltd.D		13,000			15,063
Lian HWA Food Corp.D		3,203			4,765
Sinon Corp.D		12,000			7,214
Taichung Commercial Bank Co., Ltd.D		393,847			160,076
Taiwan Mobile Co., Ltd.D		6,000			21,128
Taiwan Secom Co., Ltd.D		34,105			95,373
Taiwan Shin Kong Security Co., Ltd.D		221,170			266,227
Tehmag Foods Corp.D		3,000			21,119
Ttet Union Corp.D		38,000			148,573
Union Bank Of TaiwanD		40,240			15,538
Ve Wong Corp.D		44,000			37,661
Total Common Stocks					1,659,425
Total Taiwan (Cost $1,508,422)					1,659,425
Thailand - 5.90%
Common Stocks - 5.90%
Advanced Information Technology PCL, Class F		60,500			47,605
Amata B.Grimm Power Plant Infrasture FundA		135,700			28,018
Bangkok Bank PCLD		15,400			90,519
Bangkok Bank PCL, NVDRD		21,200			124,610
Bangkok Insurance PCL, NVDRD		1,900			20,317
CP Tower Growth Leasehold Property FundA D		25,700			11,269
CPN Commerical Growth Leashold Property FundA D		17,600			8,867
Electricity Generating PCL, NVDRD		8,000			85,444
Jasmine Broadband Internet Infrastructure FundA		159,600			58,640
Kang Yong Electric PCL, NVDRD		100			1,255
Krung Thai Bank PCL, NVDRD		473,100			300,404
Prime Office Leasehold Property FundA D		56,700			25,248
PTT PCL, NVDRD		7,000			10,681
Ratch Group PCL		103,400			226,939
Ratch Group PCL, NVDRD		43,336			94,993
Siam Cement PCL, NVDRD		300			4,226
SPCG PCL, NVDRD		70,400			43,436
Thai Stanley Electric PCL, NVDRD		1,100			7,726
Thai Vegetable Oil PCL, NVDRD		1,000			935
TTW PCL, NVDRD		17,500			7,684
Total Common Stocks					1,198,816
Total Thailand (Cost $1,022,118)					1,198,816
Turkey - 0.15%
Common Stocks - 0.15%
Anadolu Anonim Turk Sigorta SirketiD		38,245			27,724
Nuh Cimento Sanayi A/SD		2,088			2,347
Total Common Stocks					30,071
Total Turkey (Cost $30,555)					30,071
United Kingdom - 0.18% (Cost $38,785)
Common Stocks - 0.18%
Mondi PLCD		1,694			36,662

See accompanying notes

11

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Shares		Fair Value
SHORT-TERM INVESTMENTS - 0.48% (Cost $97,183)
Investment Companies - 0.48%
American Beacon U.S. Government Money Market Select Fund, Select Class, 2.28%F G		97,183		$	97,183
TOTAL INVESTMENTS - 99.18% (Cost $18,457,088)					20,143,190
OTHER ASSETS, NET OF LIABILITIES - 0.82%					165,957
TOTAL NET ASSETS - 100.00%				$	20,309,147
Percentages are stated as a percent of net assets.

^A Unit - Usually consists of one common stock and/or rights and warrants.

^B Non-income producing security.

^C A type of Preferred Stock that has no maturity date.

^D Fair valued pursuant to procedures approved by the Board of Trustees. At period end, the value of these securities amounted to $16,842,431 or 82.93% of net assets.

^E Value was determined using significant unobservable inputs.

^F The Fund is affiliated by having the same investment advisor.

^G 7-day yield.

ADR - American Depositary Receipt.

GDR – Global Depositary Receipt.

NVDR – Non-Voting Depositary Receipt.

PCL - Public Company Limited (Thailand).

PJSC - Private Joint Stock Company.

PLC - Public Limited Company.

REIT - Real Estate Investment Trust.

Long Futures Contracts Open on July 31, 2019:
Equity Futures Contracts
Description	Number of Contracts	Expiration Date	Notional Amount		Contract Value		Unrealized Appreciation (Depreciation)
Mini MSCI Emerging Markets Index Futures	5	September 2019	$	262,351	$	256,400	$	(5,951	)
			$	262,351	$	256,400	$	(5,951	)

Index Abbreviations:
MSCI	Morgan Stanley Capital International.

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of July 31, 2019, the investments were classified as described below:

Acadian Emerging Markets Managed Volatility Fund	Level 1		Level 2		Level 3			Total
Assets
Foreign Common Stocks
Brazil	$	913,030	$	-	$	-		$	913,030
Chile		716,631		-		-			716,631
China		-		5,129,705		0	(1)		5,129,705
Czech Republic		-		526,062		-			526,062
Egypt		-		553,030		-			553,030
Greece		-		502,580		-			502,580
Hong Kong		-		52,211		-			52,211
Hungary		-		328,400		-			328,400
India		280,247		2,293,432		-			2,573,679
Indonesia		27,911		45,074		-			72,985
Malaysia		-		993,331		-			993,331
Mexico		696,189		-		-			696,189
Panama		25,914		-		-			25,914

See accompanying notes

12

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

Acadian Emerging Markets Managed Volatility Fund	Level 1			Level 2		Level 3		Total
Peru	$	28,970		$	-	$	-	$	28,970
Philippines		-			768,414		-		768,414
Poland		-			56,176		-		56,176
Republic of Korea		-			1,771,790		-		1,771,790
Russia		-			601,646		-		601,646
South Africa		-			599,644		-		599,644
Taiwan		-			1,659,425		-		1,659,425
Thailand		313,597			885,219		-		1,198,816
Turkey		-			30,071		-		30,071
United Kingdom		-			36,662		-		36,662
Foreign Preferred Stocks
Brazil		153,482			-		-		153,482
South Africa		-			57,164		-		57,164
Short-Term Investments		97,183			-		-		97,183
Total Investments in Securities - Assets	$	3,253,154		$	16,890,036	$	-	$	20,143,190
Financial Derivative Instruments - Liabilities
Futures Contracts	$	(5,951	)	$	-	$	-	$	(5,951	)
Total Financial Derivative Instruments - Liabilities	$	(5,951	)	$	-	$	-	$	(5,951	)

⁽¹⁾ Includes investments held in the Fund’s portfolio with $0 fair value.

U.S. GAAP requires transfers between all levels to/from level 3 be disclosed. During the period ended July 31, 2019, there were no transfers into or out of Level 3.

The following table is a reconciliation of Level 3 assets within the Fund for which significant unobservable inputs were used to determine fair value. Transfers in or out of Level 3 represent the ending value of any security or instrument where a change in the level has occurred from the beginning to the end of the period:

Security Type	Balance as of 1/31/2019	Purchases		Sales		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Transfer into Level 3		Transfer out of Level 3		Balance as of 7/31/2019			Unrealized Appreciation (Depreciation) at Period end**
Foreign Common Stocks	$0(1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	0	(1)	$	(13,361	)

** Change in unrealized appreciation (depreciation) attributable to Level 3 securities held at period end. This balance is included in the change in unrealized appreciation (depreciation) on the Statement of Operations.

⁽¹⁾ Includes investments held in the Fund’s portfolio with $0 fair value.

The foreign common stock classified as Level 3 was fair valued at a nominal value of 0.00 Hong Kong Dollar (HKD) due to lack of unobservable inputs. The company is in bankruptcy proceedings, therefore the valuation of the common stock was written down from 0.10 HKD to 0.00 HKD. There was no impact to the Fund’s NAV.

See accompanying notes

13

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Statement of Assets and Liabilities

July 31, 2019 (Unaudited)

Assets:
Investments in unaffiliated securities, at fair value†	$	20,046,007
Investments in affiliated securities, at fair value‡		97,183
Foreign currency, at fair value^		123,825
Dividends and interest receivable		117,191
Deposits with broker for futures contracts		13,000
Receivable for fund shares sold		12,857
Receivable for expense reimbursement (Note 2)		18,593
Prepaid expenses		34,638
Total assets		20,463,294
Liabilities:
Payable for fund shares redeemed		39,906
Management and sub-advisory fees payable (Note 2)		29,180
Service fees payable (Note 2)		799
Transfer agent fees payable (Note 2)		1,360
Custody and fund accounting fees payable		25,065
Professional fees payable		52,551
Trustee fees payable (Note 2)		112
Payable for variation margin from open futures contracts (Note 5)		4,988
Other liabilities		186
Total liabilities		154,147
Net assets	$	20,309,147
Analysis of net assets:
Paid-in-capital	$	15,967,477
Total distributable earnings (deficits)A		4,341,670
Net assets	$	20,309,147
Shares outstanding at no par value (unlimited shares authorized):
Institutional Class		485,255
Y Class		1,179,333
Investor Class		224,215
A Class		34,862
C Class		17,602
Net assets:
Institutional Class	$	5,106,705
Y Class	$	12,337,802
Investor Class	$	2,321,336
A Class	$	362,384
C Class	$	180,920
Net asset value, offering and redemption price per share:
Institutional Class	$	10.52
Y Class	$	10.46
Investor Class	$	10.35
A Class	$	10.39
A Class (offering price)	$	11.02
C Class	$	10.28
† Cost of investments in unaffiliated securities	$	18,359,905
‡ Cost of investments in affiliated securities	$	97,183
^ Cost of foreign currency	$	124,561
A The Fund’s investments in affiliated securities did not have unrealized appreciation (depreciation) at period end.

See accompanying notes

14

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Statement of Operations

For the period ended July 31, 2019 (Unaudited)

Investment income:
Dividend income from unaffiliated securities (net of foreign taxes)†	$	654,627
Dividend income from affiliated securities (Note 7)		4,031
Income derived from securities lending (Note 8)		52
Total investment income		658,710
Expenses:
Management and sub-advisory fees (Note 2)		153,258
Transfer agent fees:
Institutional Class (Note 2)		1,324
Y Class (Note 2)		12,377
Investor Class		590
A Class		22
C Class		24
Custody and fund accounting fees		49,232
Professional fees		36,135
Registration fees and expenses		33,963
Service fees (Note 2):
Investor Class		6,010
A Class		130
C Class		114
Distribution fees (Note 2):
A Class		472
C Class		968
Prospectus and shareholder report expenses		6,142
Trustee fees (Note 2)		998
Other expenses		3,429
Total expenses		305,188
Net fees waived and expenses (reimbursed) (Note 2)		(80,287	)
Net expenses		224,901
Net investment income		433,809
Realized and unrealized gain (loss) from investments:
Net realized gain (loss) from:
Investments in unaffiliated securitiesA ‡		2,242,877
Commission recapture (Note 1)		121
Foreign currency transactions		(41,046	)
Futures contracts		(15,368	)
Change in net unrealized appreciation (depreciation) of:
Investments in unaffiliated securitiesB		(2,800,056	)
Foreign currency transactions		(4,004	)
Futures contracts		(42,630	)
Net (loss) from investments		(660,106	)
Net (decrease) in net assets resulting from operations	$	(226,297	)
† Foreign taxes	$	92,749
‡ Net of foreign withholding taxes on capital gains	$	2,524
A The Fund did not recognize net realized gains (losses) from the sale of investments in affiliated securities.
B The Fund’s investments in affiliated securities did not have a change in unrealized appreciation (depreciation) at period end.

See accompanying notes

15

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Statement of Changes in Net Assets

	Six Months Ended July 31, 2019			Year Ended January 31, 2019
	(unaudited)
Increase (decrease) in net assets:
Operations:
Net investment income	$	433,809		$	537,809
Net realized gain from investments in unaffiliated securities, commission recapture, foreign currency transactions, and futures contracts		2,186,584			588,740
Change in net unrealized (depreciation) of investments in unaffiliated securities, foreign currency transactions, and futures contracts		(2,846,690	)		(3,096,637	)
Net (decrease) in net assets resulting from operations		(226,297	)		(1,970,088	)
Distributions to shareholders:
Total retained earnings:
Institutional Class		-			(243,835	)
Y Class		-			(1,353,535	)
Investor Class		-			(143,418	)
A Class		-			(20,737	)
C Class		-			(9,707	)
Net distributions to shareholders		-			(1,771,232	)
Capital share transactions (Note 11):
Proceeds from sales of shares		2,187,953			9,804,850
Reinvestment of dividends and distributions		-			1,702,819
Cost of shares redeemed		(16,809,545	)		(10,520,132	)
Redemption fees		-			16,131
Net increase (decrease) in net assets from capital share transactions		(14,621,592	)		1,003,668
Net (decrease) in net assets		(14,847,889	)		(2,737,652	)
Net assets:
Beginning of period		35,157,036			37,894,688
End of period	$	20,309,147		$	35,157,036

See accompanying notes

16

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

1.  Organization and Significant Accounting Policies

American Beacon Funds (the “Trust”) is organized as a Massachusetts business trust. The Fund, a series within the Trust, is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified, open-end management investment company. As of July 31, 2019, the Trust consists of thirty-three active series, one of which is presented in this filing: American Beacon Acadian Emerging Markets Managed Volatility Fund (the “Fund”). The remaining thirty-two active series are reported in separate filings.

American Beacon Advisors, Inc. (the “Manager”) is a Delaware corporation and a wholly-owned subsidiary of Resolute Investment Managers, Inc. (“RIM”) organized in 1986 to provide business management, advisory, administrative, and asset management consulting services to the Trust and other investors. The Manager is registered as an investment advisor under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). RIM is, in turn, a wholly-owned subsidiary of Resolute Acquisition, Inc., which is a wholly-owned subsidiary of Resolute Topco, Inc., a wholly-owned subsidiary of Resolute Investment Holdings, LLC (“RIH”). RIH is owned primarily by Kelso Investment Associates VIII, L.P., KEP VI, LLC and Estancia Capital Partners L.P., investment funds affiliated with Kelso & Company, L.P. (“Kelso”) or Estancia Capital Management, LLC (“Estancia”), which are private equity firms.

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-08, Premium Amortization of Purchased Callable Debt Securities. The amendments in the ASU shorten the premium amortization period on a purchased callable debt security from the security’s contractual life to the earliest call date. It is anticipated that this change will enhance disclosures by reducing losses recognized when a security is called on an earlier date. This ASU is effective for fiscal years beginning after December 15, 2018. The Manager continues to evaluate the impact this ASU will have on the financial statements and other disclosures.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (“Topic 820”). The amendments in the ASU impact disclosure requirements for fair value measurement. It is anticipated that this change will enhance the effectiveness of disclosures in the notes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted and can include the entire standard or certain provisions that exclude or amend disclosures. For the period ended July 31, 2019, the Fund has chosen to adopt the standard. The adoption of this ASU guidance did not have a material impact on the financial statements and other disclosures.

Class Disclosure

The Fund has multiple classes of shares designed to meet the needs of different groups of investors. The following table sets forth the differences amongst the classes:

Class	Eligible Investors	Minimum Initial Investments
Institutional	Large institutional investors - sold directly or through intermediary channels.	$	250,000
Y Class	Large institutional retirement plan investors - sold directly or through intermediary channels.	$	100,000
Investor	All investors using intermediary organizations, such as broker-dealers or retirement plan sponsors.	$	2,500
A Class	All investors who invest through intermediary organizations, such as broker-dealers or third party administrator. Retail investors who invest directly through a financial intermediary such as a broker, bank, or registered investment advisor which may include a front-end sales charge and a contingent deferred sales charge (“CDSC”).	$	2,500
C Class	Retail investors who invest directly through a financial intermediary such as a broker or through employee directed benefit plans with applicable sales charges which may include CDSC.	$	1,000

17

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Each class offered by the Trust has equal rights as to assets and voting privileges. Income and non-class specific expenses are allocated daily to each class based on the relative net assets. Realized and unrealized capital gains and losses of each class are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include service, distribution, transfer agent fees, and sub-transfer agent fees that vary amongst the classes as described more fully in Note 2.

Significant Accounting Policies

The following is a summary of significant accounting policies, consistently followed by the Fund in preparation of the financial statements. The Fund is considered an investment company and accordingly, follows the investment company accounting and reporting guidance of the FASB Accounting Standards Codification Topic 946, Financial Services – Investment Companies, a part of Generally Accepted Accounting Principles (“U.S. GAAP”).

Security Transactions and Investment Income

Security transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date.

Dividend income, net of foreign taxes, is recorded on the ex-dividend date, except certain dividends from foreign securities which are recorded as soon as the information is available to the Fund. Interest income, net of foreign taxes, is earned from settlement date, recorded on the accrual basis, and adjusted, if necessary, for accretion of discounts and amortization of premiums. Realized gains (losses) from securities sold are determined based on specific lot identification.

Commission Recapture

The Fund has established brokerage commission recapture arrangements with certain brokers or dealers. If the Fund’s investment advisor chooses to execute a transaction through a participating broker, the broker rebates a portion of the commission back to the Fund. Any collateral benefit received through participation in the commission recapture program is directed exclusively to the Fund. This amount is reported with the net realized gain in the Fund’s Statement of Operations, if applicable.

Currency Translation

All assets and liabilities initially expressed in foreign currency values are converted into U.S. dollar values at the mean of the bid and ask prices of such currencies against U.S. dollars as last quoted by a recognized dealer. Income, expenses, and purchases and sales of investments are translated into U.S. dollars at the rate of the exchange prevailing on the respective dates of such transactions. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and is reported with all other foreign currency gains and losses on the Fund’s Statement of Operations.

Distributions to Shareholders

The Fund distributes most or all of its net earnings and realized gains, if any, each taxable year in the form of dividends from net investment income and distributions of realized net capital gains and net gains from foreign currency transactions on an annual basis.

Dividends to shareholders are determined in accordance with federal income tax regulations, which may differ in amount and character from net investment income and realized gains recognized for purposes of U.S. GAAP. To the extent necessary to fully distribute capital gains, the Fund may designate earnings and profits distributed to shareholders on the redemption of shares.

18

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Allocation of Income, Trust Expenses, Gains, and Losses

Investment income, realized and unrealized gains and losses from investments of the Fund is allocated daily to each class of shares based upon the relative proportion of net assets of each class to the total net assets of the Fund. Expenses directly charged or attributable to the Fund will be paid from the assets of the Fund. Generally, expenses of the Trust will be allocated among and charged to the assets of the Fund on a basis that the Trust’s Board of Trustees (the “Board”) deems fair and equitable, which may be based on the relative net assets of the Fund or nature of the services performed and relative applicability to the Fund.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimated.

Other

Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In the normal course of business, the Trust enters into contracts that provide indemnification to the other party or parties against potential costs or liabilities. The Trust’s maximum exposure under these arrangements is dependent on claims that may be made in the future and, therefore, cannot be estimated. The Trust has had no prior claims or losses pursuant to any such agreement.

2.  Transactions with Affiliates

Management and Investment Sub-Advisory Agreements

The Fund and the Manager are parties to a Management Agreement that obligates the Manager to provide the Fund with investment advisory and administrative services. As compensation for performing the duties under the Management Agreement, the Manager will receive an annualized management fee based on a percentage of the Fund’s average daily net assets that is calculated and accrued daily according to the following schedule:

First $5 billion	0.35	%
Next $5 billion	0.325	%
Next $10 billion	0.30	%
Over $20 billion	0.275	%

The Trust, on behalf of the Fund, and the Manager have entered into an Investment Advisory Agreement with Acadian Asset Management LLC (the “Sub-Advisor”) pursuant to which the Fund has agreed to pay an annualized sub-advisory fee that is calculated and accrued daily based on the Fund’s average daily net assets according to the following schedule:

Acadian Asset Management LLC

First $500 million	0.65	%
Over $500 million	0.60	%

The Management and Sub-Advisory Fees paid by the Fund for the period ended July 31, 2019 were as follows:

	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.35	%	$	53,644
Sub-Advisor Fees		0.65	%		99,614
Total		1.00	%	$	153,258

As compensation for services provided by the Manager in connection with securities lending activities conducted by the Fund, the lending Fund pays to the Manager, with respect to cash collateral posted by borrowers,

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American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

a fee up to 10% of the net monthly interest income (the gross interest income earned by the investment of cash collateral, less the amount paid to borrowers and related expenses) from such activities and, with respect to loan fees paid by borrowers, a fee up to 10% of such loan fees. These fees are included in “Income derived from securities lending” and “Management and investment advisory fees” on the Statement of Operations. During the period ended July 31, 2019, the Manager received securities lending fees of $4 for the securities lending activities of the Fund.

Distribution Plans

The Fund, except for the A and C Classes of the Fund, has adopted a “defensive” Distribution Plan (the “Plan”) in accordance with Rule 12b-1 under the Act, pursuant to which no separate fees may be charged to the Fund for distribution purposes. However, the Plan authorizes the management fee received by the Manager and the investment advisors hired by the Manager to be used for distribution purposes. Under this Plan, the Fund does not intend to compensate the Manager or any other party, either directly or indirectly, for the distribution of Fund shares.

Separate Distribution Plans (the “Distribution Plans”) have been adopted pursuant to Rule 12b-1 under the Act for the A and C Classes of the Fund. Under the Distribution Plans, as compensation for distribution and shareholder servicing assistance, the Manager receives an annual fee of 0.25% of the average daily net assets of the A Class and 1.00% of the average daily net assets of the C Class. The fee will be payable without regard to whether the amount of the fee is more or less than the actual expenses incurred in a particular month by the Manager for distribution assistance.

Service Plans

The Manager and the Trust entered into a Service Plan that obligates the Manager to oversee additional shareholder servicing of the Investor, A, and C Classes of the Fund. As compensation for performing the duties required under the Service Plan, the Manager receives an annualized fee up to 0.25% of the average daily net assets of the A and C Classes, and up to 0.375% of the average daily net assets of the Investor Class of the Fund.

Sub-Transfer Agent Fees

The Manager has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Institutional and Y Classes of the Fund and has agreed to compensate the intermediaries for providing these services. Intermediaries transact with the Fund primarily through the use of omnibus accounts on behalf of its customers who hold positions in the Fund. Certain services would have been provided by the Fund’s transfer agent and other service providers if the shareholders’ accounts were maintained directly by the Fund’s transfer agent. Accordingly, the Fund, pursuant to Board approval, has agreed to reimburse the Manager for certain non-distribution shareholder services provided by financial intermediaries for the Institutional and Y Classes. The reimbursement amounts (sub-transfer agent fees) paid to the Manager are subject to a fee limit of up to 0.10% of an intermediary’s average net assets in the Institutional and Y Classes on an annual basis. During the period ended July 31, 2019, the sub-transfer agent fees, as reflected in “Transfer agent fees” on the Statement of Operations, were as follows:

Fund	Sub-Transfer Agent Fees
Acadian Emerging Markets Managed Volatility	$	13,051

As of July 31, 2019, the Fund owed the Manager the following reimbursement of sub-transfer agent fees, as reflected in “Transfer agent fees payable” on the Statement of Assets and Liabilities:

Fund	Reimbursement Sub-Transfer Agent Fees
Acadian Emerging Markets Managed Volatility	$	1,360

20

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Investments in Affiliated Funds

The Fund may invest in the American Beacon U.S. Government Money Market Select Fund (the “USG Select Fund”). Cash collateral received by the Fund in connection with securities lending may also be invested in the USG Select Fund. The Fund and the USG Select Fund have the same investment advisor and therefore, are considered to be affiliated. The Manager serves as investment advisor to the USG Select Fund and receives management fees and administrative fees totaling 0.10% of the average daily net assets of the USG Select Fund. During the period ended July 31, 2019, the Manager earned fees on the Fund’s direct and indirect investments in the USG Select Fund as shown below:

Fund	Direct Investments in USG Select Fund		Securities Lending Collateral Investments  in USG Select Fund		Total
Acadian Emerging Markets Managed Volatility	$	172	$	6	$	178

Interfund Credit Facility

Pursuant to an exemptive order issued by the SEC, the Fund, along with other registered investment companies having management contracts with the Manager, may participate in a credit facility whereby each fund, under certain conditions, is permitted to lend money directly to and borrow directly from other participating funds for temporary purposes. The interfund credit facility is advantageous to the funds because it provides added liquidity and eliminates the need to maintain higher cash balances to meet redemptions. This situation could arise when shareholder redemptions exceed anticipated volumes and certain funds have insufficient cash on hand to satisfy such redemptions or when sales of securities do not settle as expected, resulting in a cash shortfall for a fund. When a fund liquidates portfolio securities to meet redemption requests, they often do not receive payment in settlement for up to two days (or longer for certain foreign transactions). Redemption requests normally are satisfied on the next business day. The credit facility provides a source of immediate, short-term liquidity pending settlement of the sale of portfolio securities. The credit facility is administered by a credit facility team consisting of professionals from the Manager’s asset management, compliance, and accounting areas who report the activities of the credit facility to the Board. During the period ended July 31, 2019, the Fund borrowed on average $570,200 for 11 days at an average interest rate of 3.04% with interest charges of $520. These amounts are recorded as “Other expenses” in the Statement of Operations.

Expense Reimbursement Plan

The Manager contractually agreed to reduce fees and/or reimburse expenses for the classes of the Fund to the extent that total operating expenses exceed the Fund’s expense cap. During the period ended July 31, 2019, the Manager waived and/or reimbursed expenses as follows:

		Expense Cap									Expiration of Reimbursed Expenses
Fund	Class	2/1/2019 - 7/31/2019			Reimbursed Expenses		Expenses Ineligible for Recoupment		(Recouped) Expenses
Acadian Emerging Markets Managed Volatility	Institutional		1.35	%	$	14,085	$	-	$	-		2022
Acadian Emerging Markets Managed Volatility	Y		1.45	%		56,768		-		-		2022
Acadian Emerging Markets Managed Volatility	Investor		1.73	%		8,148		-		-		2022
Acadian Emerging Markets Managed Volatility	A		1.75	%		811		-		-		2022
Acadian Emerging Markets Managed Volatility	C		2.50	%		475		-		-		2022

21

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Of these amounts, $18,593 was disclosed as a receivable from the Manager on the Statement of Assets and Liabilities at July 31, 2019.

The Fund has adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of such fee reductions and expense reimbursements. Under the policy, the Manager can be reimbursed by the Fund for any contractual or voluntary fee reductions 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 Fund’s annual operating expenses to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or time of recoupment. The reimbursed expenses listed above will expire in 2021 and 2022. The Fund did not record a liability for potential reimbursement due to the current assessment that a reimbursement is uncertain. The carryover of excess expenses potentially reimbursable to the Manager are as follows:

Fund	Recouped Expenses		Excess Expense Carryover		Expired Expense Carryover		Expiration of Reimbursed Expenses
Acadian Emerging Markets Managed Volatility	$	-	$	35,750	$	69,319		2019-2020
Acadian Emerging Markets Managed Volatility		-		207,970		-		2020-2021
Acadian Emerging Markets Managed Volatility		-		120,396		-		2021-2022

Sales Commissions

The Fund’s Distributor, Resolute Investment Distributors, Inc. (“RID” or “Distributor”), may receive a portion of Class A sales charges from broker dealers and it may be used to offset distribution related expenses. During the period ended July 31, 2019, there were no fees collected by RID from the sale of Class A Shares of the Fund.

A CDSC of 0.50% will be deducted with respect to Class A Shares on certain purchases of $1,000,000 or more that are redeemed in whole or part within 18 months of purchase, unless waived as discussed in the Fund’s Prospectus. Any applicable CDSC will be 0.50% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended July 31, 2019, there were no CDSC fees collected for Class A Shares of the Fund.

A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived as discussed in the Fund’s Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended July 31, 2019, CDSC fees of $198 were collected for Class C Shares of the Fund.

Trustee Fees and Expenses

As compensation for their service to the Trusts, each Trustee receives an annual retainer of $120,000, plus $10,000 for each Board meeting attended in person or via teleconference, $2,500 for attendance by Committee members at meetings of the Audit Committee and the Investment Committee, and $1,500 for attendance by Committee members at meetings of the Nominating and Governance Committee, plus reimbursement of reasonable expenses incurred in attending Board meetings, Committee meetings, and relevant educational seminars. The Trustees also may be compensated for attendance at special Board and/or Committee meetings from time to time. The Board Chair receives an additional annual retainer of $50,000 as well as a $2,500 fee each quarter for attendance at the committee meetings. The Chairpersons of the Audit Committee and the Investment Committee each receive an additional annual retainer of $25,000 and the Chairman of the Nominating and Governance Committee receives an additional annual retainer of $10,000. These expenses are allocated on a prorated basis to each fund of the Trusts according to its respective net assets.

22

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

3.  Security Valuation and Fair Value Measurements

The price of the Fund’s shares is based on its net asset value (“NAV”) per share. The Fund’s NAV is computed by adding total assets, subtracting all the Fund’s liabilities, and dividing the result by the total number of shares outstanding.

The NAV of each class of the Fund’s shares is determined based on a pro rata allocation of the Fund’s investment income, expenses and total capital gains and losses. The Fund’s NAV per share is determined each business day as of the regular close of trading on the New York Stock Exchange (“NYSE” or “Exchange”), which is typically 4:00 p.m. Eastern Time (“ET”). However, if trading on the NYSE closes at a time other than 4:00 p.m. ET, the Fund’s NAV per share typically would still be determined as of the regular close of trading on the NYSE. The Fund does not price its shares on days that the NYSE is closed. Foreign exchanges may permit trading in foreign securities on days when the Fund is not open for business, which may result in the value of the Fund’s portfolio investments being affected at a time when you are unable to buy or sell shares.

Equity securities, including shares of closed-end funds and exchange-traded funds (“ETFs”), are valued at the last sale price or official closing price taken from the primary exchange in which each security trades. Investments in other mutual funds are valued at the closing NAV per share on the day of valuation. Debt securities are valued at bid quotes from broker/dealers or evaluated bid prices from pricing services, who may consider a number of inputs and factors, such as prices of comparable securities, yield curves, spreads, credit ratings, coupon rates, maturity, default rates, and underlying collateral. Futures are valued based on their daily settlement prices. Exchange-traded and over-the-counter (“OTC”) options are valued at the last sale price. Options with no last sale for the day are priced at mid quote. Swaps are valued at evaluated mid prices from pricing services.

The valuation of securities traded on foreign markets and certain fixed income securities will generally be based on prices determined as of the earlier closing time of the markets on which they primarily trade unless a significant event has occurred. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. ET.

Securities may be valued at fair value, as determined in good faith and pursuant to procedures approved by the Board, under certain limited circumstances. For example, fair value pricing will be used when market quotations are not readily available or reliable, as determined by the Manager, such as when (i) trading for a security is restricted or stopped; (ii) a security’s trading market is closed (other than customary closings); or (iii) a security has been de-listed from a national exchange. A security with limited market liquidity may require fair value pricing if the Manager determines that the available price does not reflect the security’s true market value. In addition, if a significant event that the Manager determines to affect the value of one or more securities held by the Fund occurs after the close of a related exchange but before the determination of the Fund’s NAV, fair value pricing may be used on the affected security or securities. Securities of small-capitalization companies are also more likely to require a fair value determination using these procedures because they are more thinly traded and less liquid than the securities of larger-capitalization companies. The Fund may fair value securities as a result of significant events occurring after the close of the foreign markets in which the Fund invests as described below. In addition, the Fund may invest in illiquid securities requiring these procedures.

The Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund’s pricing time of 4:00 p.m. ET. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. If the Manager determines that the last quoted prices of non-U.S. securities will, in its judgment, materially affect the value of some or all its portfolio securities, the Manager can adjust the previous closing prices to reflect what it believes to be the fair value of the securities as of the close of the Exchange. In deciding whether it is necessary to adjust closing prices to reflect fair value, the Manager reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities

23

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

and baskets of foreign securities. These securities are fair valued using a pricing service, using methods approved by the Board, that considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant American Depositary Receipts (“ADRs”) and futures contracts. The Valuation Committee, established by the Board, may also fair value securities in other situations, such as when a particular foreign market is closed but the Fund is open. The Fund uses outside pricing services to provide closing prices and information to evaluate and/or adjust those prices. As a means of evaluating its security valuation process, the Valuation Committee routinely compares closing prices, the next day’s opening prices in the same markets and adjusted prices.

Attempts to determine the fair value of securities introduce an element of subjectivity to the pricing of securities. As a result, the price of a security determined through fair valuation techniques may differ from the price quoted or published by other sources and may not accurately reflect the market value of the security when trading resumes. If a reliable market quotation becomes available for a security formerly valued through fair valuation techniques, the Manager compares the new market quotation to the fair value price to evaluate the effectiveness of the Fund’s fair valuation procedures. If any significant discrepancies are found, the Manager may adjust the Fund’s fair valuation procedures.

Valuation Inputs

Various inputs may be used to determine the fair value of the Fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

Level 1	-	Quoted prices in active markets for identical securities.
Level 2	-	Prices determined using other significant observable inputs. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Level 3	-	Prices determined using other significant unobservable inputs. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in pricing an investment.

Level 1 and Level 2 trading assets and trading liabilities, at fair value

Common stocks, preferred securities, and financial derivative instruments, such as futures contracts that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are generally categorized as Level 2 of the fair value hierarchy. Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the close of the Exchange. These securities are valued using pricing service providers that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment management companies will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value

The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of the fair value hierarchy are as follows.

Securities and other assets for which market quotes are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction and may be categorized as Level 3 of the fair value hierarchy.

24

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the Exchange close, that materially affect the values of the Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade, do not open for trading for the entire day and no other market prices are available. The Board has delegated to the Manager the responsibility for monitoring significant events that may materially affect the fair values of a Fund’s securities or assets and for determining whether the value of the applicable securities or assets should be re-evaluated in light of such significant events.

The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation methods to the Manager. For instances in which daily market quotes are not readily available, investments may be valued pursuant to guidelines established by the Board. In the event that the security or asset cannot be valued, pursuant to one of the valuation methods established by the Board, the fair value of the security or asset will be determined in good faith by the Valuation Committee, generally based upon recommendations provided by the Manager.

When a Fund uses fair valuation methods applied by the Manager that use significant unobservable inputs to determine its NAV, the securities priced using this methodology are categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Fund’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that a Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ from the value that would be realized if the securities were sold.

4.  Securities and Other Investments

American Depositary Receipts and Non-Voting Depositary Receipts

ADRs are depositary receipts for foreign issuers in registered form traded in U.S. securities markets. Non-Voting Depositary Receipts (“NVDRs”) represent financial interests in an issuer but the holder is not entitled to any voting rights. Depositary receipts may not be denominated in the same currency as the securities into which they may be converted. Investing in depositary receipts entails substantially the same risks as direct investment in foreign securities. There is generally less publicly available information about foreign companies and there may be less governmental regulation and supervision of foreign stock exchanges, brokers, and listed companies. In addition, such companies may use different accounting and financial standards (and certain currencies may become unavailable for transfer from a foreign currency), resulting in the Fund’s possible inability to convert immediately into U.S. currency proceeds realized upon the sale of portfolio securities of the affected foreign companies. In addition, the Fund may invest in unsponsored depositary receipts, the issuers of which are not obligated to disclose material information about the underlying securities to investors in the United States. Ownership of unsponsored depositary receipts may not entitle the Fund to the same benefits and rights as ownership of a sponsored depositary receipt or the underlying security.

Common Stock

Common stock generally takes the form of shares in a corporation which represent an ownership interest. It ranks below preferred stock and debt securities in claims for dividends and for assets of the company in a liquidation or bankruptcy. The value of a company’s common stock may fall as a result of factors directly relating to that company, such as decisions made by its management or decreased demand for the company’s products or services. A stock’s value may also decline because of factors affecting not just the company, but also companies in the same industry or sector. The price of a company’s stock may also be affected by changes in financial markets that are relatively unrelated to the company, such as changes in interest rates, currency exchange rates or industry

25

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

regulation. Companies that elect to pay dividends on their common stock generally only do so after they invest in their own business and make required payments to bondholders and on other debt and preferred stock. Therefore, the value of a company’s common stock will usually be more volatile than its bonds, other debt and preferred stock. Common stock may be exchange-traded or OTC. OTC stock may be less liquid than exchange-traded stock.

Foreign Securities

The Fund may invest in U.S. dollar-denominated and non-U.S. dollar denominated equity and debt securities of foreign issuers and foreign branches of U.S. banks, including negotiable certificates of deposit (“CDs”), bankers’ acceptances, and commercial paper. Foreign issuers are issuers organized and doing business principally outside the United States and include corporations, banks, non-U.S. governments, and quasi-governmental organizations. While investments in foreign securities may be intended to reduce risk by providing further diversification, such investments involve sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political or social instability, nationalization, expropriation, or confiscatory taxation); the potentially adverse effects of unavailability of public information regarding issuers, different governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States; different laws and customs governing securities tracking; and possibly limited access to the courts to enforce the Fund’s rights as an investor.

Illiquid and Restricted Securities

Generally, an illiquid asset is an asset that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, as determined pursuant to Rule 22e-4 under the Investment Company Act or as otherwise permitted or required by SEC rules and interpretations. Historically, illiquid securities have included securities that have not been registered under the Securities Act, securities that are otherwise not readily marketable, and repurchase agreements having a remaining maturity of longer than seven calendar days. Securities that have not been registered under the Securities Act are referred to as private placements or restricted securities and are purchased directly from the issuer or in the secondary market. These securities may be sold only in a privately negotiated transaction or pursuant to an exemption from registration. A large institutional market exists for certain securities that are not registered under the Securities Act, including repurchase agreements, commercial paper, foreign securities, municipal securities and corporate bonds and notes. Institutional investors depend on an efficient institutional market in which the unregistered security can be readily resold or on an issuer’s ability to honor a demand for repayment. However, the fact that there are contractual or legal restrictions on resale of such investments to the general public or to certain institutions may not be indicative of their liquidity.

Limitations on resale may have an adverse effect on the marketability of portfolio securities, and the Fund might be unable to dispose of restricted or other illiquid securities promptly or at reasonable prices and might thereby experience difficulty satisfying redemptions within seven calendar days. In addition, the Fund may get only limited information about an issuer, so it may be less able to predict a loss. The Fund also might have to register such restricted securities in order to dispose of them resulting in additional expense and delay. Adverse market conditions could impede such a public offering of securities. In recognition of the increased size and liquidity of the institutional market for unregistered securities and the importance of institutional investors in the formation of capital, the SEC adopted Rule 144A under the Securities Act. Rule 144A is designed to facilitate efficient trading among institutional investors by permitting the sale of certain unregistered securities to qualified institutional buyers. To the extent privately placed securities held by the Fund qualify under Rule 144A and an institutional market develops for those securities, the Fund likely will be able to dispose of the securities without registering them under the Securities Act. To the extent that institutional buyers become, for a time, uninterested in purchasing these securities, investing in Rule 144A securities could increase the level of the Fund’s illiquidity. The

26

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Manager or the sub-advisor, as applicable, may determine that certain securities qualified for trading under Rule 144A are liquid. Regulation S under the Securities Act permits the sale abroad of securities that are not registered for sale in the United States and includes a provision for U.S. investors, such as the Fund, to purchase such unregistered securities if certain conditions are met.

Securities sold in private placement offerings made in reliance on the “private placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act and resold to qualified institutional buyers under Rule 144A under the Securities Act (“Section 4(a)(2) securities”) are restricted as to disposition under the federal securities laws, and generally are sold to institutional investors, such as the Fund, that agree they are purchasing the securities for investment and not with an intention to distribute to the public. Any resale by the purchaser must be pursuant to an exempt transaction and may be accomplished in accordance with Rule 144A. Section 4(a)(2) securities normally are resold to other institutional investors through or with the assistance of the issuer or dealers that make a market in the Section 4(a)(2) securities, thus providing liquidity. Restricted securities outstanding during the period ended July 31, 2019 are disclosed in the Notes to the Schedule of Investments.

Regulation S under the Securities Act permits the sale abroad of securities that are not registered for sale in the United States and includes a provision for U.S. investors, such as the Fund, to purchase such unregistered securities if certain conditions are met.

Other Investment Company Securities and Other Exchange-Traded Products

The Fund may invest in shares of other investment companies, including open-end funds, closed-end funds, business development companies, ETFs, unit investment trusts, and other investment companies of the Trust. The Fund may invest in securities of an investment company advised by the Manager or a sub-advisor. Investments in the securities of other investment companies may involve duplication of advisory fees and certain other expenses. By investing in another investment company, the Fund becomes a shareholder of that investment company. As a result, the Fund’s shareholders indirectly will bear the Fund’s proportionate share of the fees and expenses paid by shareholders of the other investment company, in addition to the fees and expenses the Fund’s shareholders directly bear in connection with the Fund’s own operations. These other fees and expenses are reflected as Acquired Fund Fees and Expenses and are included in the Fees and Expenses Table for the Fund in its Prospectus, if applicable. Investments in other investment companies may involve the payment of substantial premiums above the value of such issuer’s portfolio securities.

Preferred Stock

A preferred stock blends the characteristics of a bond and common stock. It can offer the higher yield of a bond and has priority over common stock in equity ownership, but does not have the seniority of a bond and its participation in the issuer’s growth may be limited. Preferred stock generally has preference over common stock in the receipt of dividends and in any residual assets after payment to creditors should the issuer be dissolved. Although the dividend is set at a fixed or variable rate, in some circumstances it can be changed or omitted by the issuer.

Real Estate Investment Trusts

The Fund may own shares of real estate investment trusts (“REITs”) which report information on the source of their distributions annually. The Fund re-characterizes distributions received from REIT investments based on information provided by the REITs into the following categories: ordinary income, long-term capital gains, and return of capital. If information is not available on a timely basis from the REITs, the re-characterization will be estimated based on available information, which may include the previous year allocation. If new or additional information becomes available from the REITs at a later date, a re-characterization will be made the following year.

27

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

5.  Financial Derivative Instruments

The Fund may utilize derivative instruments to gain market exposure on cash balances to hedge foreign currency exposure or reduce market exposure in anticipation of liquidity needs. When considering the Fund’s use of derivatives, it is important to note that the Fund does not use derivatives for the purpose of creating financial leverage.

Futures Contracts

Futures contracts are contracts to buy or sell a standard quantity of securities at a specified price on a future date. The Fund may enter into financial futures contracts as a method for keeping assets readily convertible to cash if needed to meet shareholder redemptions or for other needs while maintaining exposure to the stock or bond market, as applicable. The primary risks associated with the use of futures contracts are the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities or that the counterparty will fail to perform its obligations.

Upon entering into a futures contract, the Fund is required to set aside or deposit with a broker an amount, termed the initial margin, which typically represents a portion of the face value of the futures contract. The Fund usually reflects this amount on the Schedule of Investments as a U.S. Treasury Bill held as collateral for futures contracts or as cash deposited with broker on the Statement of Assets and Liabilities. Payments to and from the broker, known as variation margin, are required to be made on a daily basis as the price of the futures contract fluctuates. Changes in initial settlement values are accounted for as unrealized appreciation (depreciation) until the contracts are terminated, at which time realized gains and losses are recognized. Futures contracts are valued at the most recent settlement price established each day by the exchange on which they are traded.

During the period ended July 31, 2019, the Fund entered into futures contracts primarily for exposing cash to markets.

The Fund’s average futures contracts outstanding fluctuate throughout the operating year as required to meet strategic requirements. The following table illustrates the average quarterly volume of futures contracts. For the purpose of this disclosure, volume is measured by contracts outstanding at each quarter end.

Average Futures Contracts Outstanding
Fund	Period Ended July 31, 2019
Acadian Emerging Markets Managed Volatility		12

The following is a summary of the fair valuations of the Fund’s derivative instruments categorized by risk exposure⁽¹⁾:

Fair values of financial instruments on the Statement of Assets and Liabilities as of July 31, 2019:
	Derivatives not accounted for as hedging instruments
Liabilities:	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Payable for variation margin from open futures contracts(2)		$	-		$	-		$	-		$	-		$	(5,951	)		$	(5,951	)
The effect of financial derivative instruments on the Statement of Operations as of July 31, 2019:
	Derivatives not accounted for as hedging instruments
Realized gain (loss) from derivatives recognized as a result of operations	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Futures contracts		$	-		$	-		$	-		$	-		$	(15,368	)		$	(15,368	)
Net change in unrealized appreciation (depreciation) of derivatives recognized as a result from operations:	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Futures contracts		$	-		$	-		$	-		$	-		$	(42,630	)		$	(42,630	)

⁽¹⁾ See Note 3 in the Notes to Financial Statements for additional information.

⁽²⁾ Includes cumulative appreciation (depreciation) of futures contracts as reported in the Fund’s Schedule of Investments footnotes. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

28

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Offsetting Assets and Liabilities

The Fund is a party to enforceable master netting agreements between brokers and counterparties which provide for the right to offset under certain circumstances. The Fund employs multiple money managers and counterparties and has elected not to offset qualifying financial and derivative instruments on the Statement of Assets and Liabilities, as such all financial and derivative instruments are presented on a gross basis. The impacts of netting arrangements that provide the right to offset are detailed below, if applicable. The net amount represents the net receivable or payable that would be due from or to the counterparty in the event of default. Exposure from borrowings and other financing agreements such as repurchase agreements can only be netted across transactions governed by the same Master Agreement with the same legal entity. All amounts reported below represent the balance as of the report date, July 31, 2019.

Offsetting of Financial and Derivative Assets as of July 31, 2019:
	Assets		Liabilities
Long Futures Contracts	$	-	$	5,951
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	-	$	5,951
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)	$	-	$	(5,951	)

6.  Principal Risks

Investing in the Fund may involve certain risks including, but not limited to, those described below.

China Investment Risk

Investing in securities of Chinese issuers, including A-Shares, involves certain risks and considerations not typically associated with investing in securities of U.S. issuers, including, among others, more frequent trading suspensions and government interventions (including by nationalization of assets), currency exchange rate fluctuations or blockages, limits on the use of brokers and on foreign ownership, different financial reporting standards, higher dependence on exports and international trade, potential for increased trade tariffs, embargoes and other trade limitations, and custody risks associated with programs used to access Chinese securities. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities, and have shown a willingness to exercise that option in response to market volatility and other events.

Counterparty Risk

The Fund is subject to the risk that a party or participant to a transaction, such as a broker or derivative counterparty, will be unwilling or unable to satisfy its obligation to make timely principal, interest or settlement payments or to otherwise honor its obligations to the Fund. As a result the Fund may obtain no recovery of its investment or may only obtain a limited recovery, and any recovery may be delayed. Not all derivative transactions require a counterparty to post collateral, which may expose the Fund to greater losses in the event of a default by a counterparty.

Currency Risk

The Fund may have exposure to foreign currencies investing in securities denominated in non-U.S. currencies or in securities denominated in non-U.S. currencies, purchasing or selling forward currency exchange contracts in non-U.S. currencies, non-U.S. currency futures contracts, options on non-U.S. currencies and non-U.S. currency futures and swaps for cross-currency investments. Foreign currencies may decline in value relative to the U.S. dollar, or, in the case of hedging positions, the U.S. dollar may decline in value relative to the currency being hedged, and thereby affect the Fund’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies. Currency

29

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

exchange rates may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns of the Fund. Currency futures, forwards, options or swaps may not always work as intended, and in specific cases, the Fund may be worse off than if it had not used such instrument(s). There may not always be suitable hedging instruments available. Even where suitable hedging instruments are available, the Fund may choose to not hedge its currency risks.

Derivatives Risk

Derivatives may involve significant risk. The use of derivative instruments may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities or other instruments underlying those derivatives, including the high degree of leverage often embedded in such instruments, and potential material and prolonged deviations between the theoretical value and realizable value of a derivative. Some derivatives have the potential for unlimited loss, regardless of the size of the Fund’s initial investment. Derivatives may be illiquid and may be more volatile than other types of investments. The Fund may buy or sell derivatives not traded on an exchange and which may be subject to heightened liquidity and valuation risk. Derivative investments can increase portfolio turnover and transaction costs. Derivatives also are subject to counterparty risk and credit risk. As a result, the Fund may obtain no recovery of its investment or may only obtain a limited recovery, and any recovery may be delayed. Not all derivative transactions require a counterparty to post collateral, which may expose the Fund to greater losses in the event of a default by a counterparty.

Equity Investments Risk

Equity securities are subject to market risk. The Fund’s investments in equity securities may include common stocks, preferred stocks, securities convertible into or exchangeable for common stocks, REITs, depositary receipts, and U.S. dollar-denominated foreign stocks traded on U.S. exchanges. Such investments may expose the Fund to additional risk. The value of a company’s common stock may fall as a result of factors affecting the company, companies in the same industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company. Preferred stocks are sensitive to movements in interest rates. Preferred stocks may be less liquid than common stocks and, unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred stocks generally are payable at the discretion of an issuer and after required payments to bond holders. 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 REITs are subject to the risks associated with investing in the real estate industry such as adverse developments affecting the real estate industry and real property values. Depositary receipts are subject to certain of the risks associated with investing directly in foreign securities, including, but not limited to, currency exchange rate fluctuations, political and financial instability in the home country of a particular depositary receipt, less liquidity and more volatility, less government regulation and supervision and delays in transaction settlement.

Foreign Investing and Emerging Markets 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, (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. To the extent the Fund invests a significant portion of its assets in securities of a single country or region, it is more likely to be affected by events or conditions of that country or region. In addition, the economies and political environments of emerging market countries tend to be more unstable than those of developed countries, resulting in more volatile rates of return than the developed markets

30

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

and substantially greater risk to investors. There may be very limited oversight of certain foreign banks or securities depositories that hold foreign securities and currency and the laws of certain countries may limit the ability to recover such assets if a foreign bank or depository or their agents goes bankrupt. When investing in emerging markets, the risks of investing in foreign securities are heightened. Emerging markets have unique risks that are greater than, or in addition to, investing in developed markets because emerging markets are generally smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other developed markets. There are also risks of: greater political uncertainties; an economy’s dependence on revenues from particular commodities or on international aid or development assistance; currency transfer restrictions; a limited number of potential buyers for such securities, resulting in increased volatility and limited liquidity for emerging market securities; trading suspensions; and delays and disruptions in securities settlement procedures. In addition, there may be less information available to make investment decisions and more volatile rates of return.

Futures Contracts Risk

Futures contracts are derivative instruments where one party pays a fixed price for an agreed amount of securities or other underlying assets at an agreed date. The use of such derivative instruments may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. Futures contracts may experience potentially dramatic price changes (losses) and imperfect correlation between the price of the contract and the underlying security or index, which will increase the volatility of the Fund and may involve a small investment of cash (the amount of initial and variation margin) relative to the magnitude of the risk assumed (the potential increase or decrease in the price of the futures contract).

Market Risk

Conditions in the U.S. and many foreign economies have resulted, and may continue to result, in certain instruments experiencing unusual liquidity issues, increased price volatility and, in some cases, credit downgrades and increased likelihood of default. These events have reduced the willingness and ability of some lenders to extend credit, and have made it more difficult for some borrowers to obtain financing on attractive terms, if at all. In some cases, traditional market participants have been less willing to make a market in some types of debt instruments, which has affected the liquidity of those instruments. During times of market turmoil, investors tend to look to the safety of securities issued or backed by the U.S. Treasury, causing the prices of these securities to rise and the yields to decline. Reduced liquidity in fixed income and credit markets may negatively affect many issuers worldwide. In addition, global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely impact issuers in a different country or region. A rise in protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the economies of many nations in ways that cannot necessarily be foreseen at the present time.

In response to the financial crisis, the U.S. and other governments and the Federal Reserve and certain foreign central banks have taken steps to support financial markets. In some countries where economic conditions are recovering, they are nevertheless perceived as still fragile. Withdrawal of government support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeeding, could adversely impact the value and liquidity of certain securities. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasi-governmental organizations, including changes in tax laws. The impact of new financial regulation legislation on the markets and the practical implications for market participants may not be fully known for some time. Regulatory changes are causing some financial services companies to exit long-standing lines of business, resulting in dislocations for other market participants. In addition, political and diplomatic events within the U.S. and abroad, such as the United States government’s inability at times to agree on a long-term budget and deficit reduction plan, the threat of a federal government shutdown and threats not to increase the federal government’s debt limit, may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a

31

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

significant degree. The U.S. government has recently reduced the federal corporate income tax rates, and future legislative, regulatory and policy changes may result in more restrictions on international trade, less stringent prudential regulation of certain players in the financial markets, and significant new investments in infrastructure and national defense. Markets may react strongly to expectations about the changes in these policies, which could increase volatility, especially if the markets’ expectations for changes in government policies are not borne out.

Changes in market conditions will not have the same impact on all types of securities. Interest rates have been unusually low in recent years in the United States and abroad. Because there is little precedent for this situation, it is difficult to predict the impact of a significant rate increase on various markets. For example, because investors may buy securities or other investments with borrowed money, a significant increase in interest rates may cause a decline in the markets for those investments. Because of the sharp decline in the worldwide price of oil, there is a concern that oil producing nations may withdraw significant assets now held in U.S. Treasuries, which could force a substantial increase in interest rates. Regulators have expressed concern that rate increases may cause investors to sell fixed income securities faster than the market can absorb them, contributing to price volatility. In addition, there is a risk that the prices of goods and services in the U.S. and many foreign economies may decline over time, known as deflation (the opposite of inflation). Deflation may have an adverse effect on stock prices and creditworthiness and may make defaults on debt more likely. If a country’s economy slips into a deflationary pattern, it could last for a prolonged period and may be difficult to reverse.

The precise details and the resulting impact of the United Kingdom’s vote to leave the European Union (the “EU”), commonly referred to as “Brexit,” are not yet known. The effect on the United Kingdom’s economy will likely depend on the nature of trade relations with the EU and other major economies following its exit, which are matters to be negotiated. The outcomes may cause increased volatility and have a significant adverse impact on world financial markets, other international trade agreements, and the United Kingdom and European economies, as well as the broader global economy for some time, which could significantly adversely affect the value of the Fund’s investments in the United Kingdom and Europe.

Market Timing Risk

Because the Fund invests in foreign securities, it is particularly subject to the risk of market timing activities. Frequent trading by Fund shareholders poses risks to other shareholders in the Fund, including (i) the dilution of the Fund’s NAV, (ii) an increase in the Fund’s expenses, and (iii) interference with the portfolio manager’s ability to execute efficient investment strategies. Because of specific securities in which the Fund may invest, it could be subject to the risk of market timing activities by shareholders. Some examples of these types of securities are high-yield and foreign securities. The limited trading activity of some high-yield securities may result in market prices that do not reflect the true market value of these securities. The Fund generally prices foreign securities using their closing prices from the foreign markets in which they trade, typically prior to the Fund’s calculation of its NAV. These prices may be affected by events that occur after the close of a foreign market but before the Fund price its shares. In such instances, the Fund may fair value high yield and foreign 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 NAV of the Fund’s shares. While the Manager monitors trading in the Fund, 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 money market funds, exchange-traded funds (“ETFs”) and business development companies (“BDCs”). To the extent that the Fund invests in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses, including for example, advisory and administrative fees, charged by those investment companies in addition to the Fund direct fees and expenses and will be subject to the risks associated with investments in those companies. For example, the Fund investments in money market funds are subject to interest rate risk, credit risk, and market risk. The Fund must rely on the investment company in which it invests to achieve its investment objective. If the

32

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

investment company fails to achieve its investment objective, the value of the Fund investment may decline, adversely affecting the Fund performance. ETFs are subject to the following risks that do not apply to conventional funds: (1) the market price of an ETF’s shares may trade at a discount or premium to its NAV; (2) an active trading market for an ETF’s shares may not develop or be maintained; or (3) trading of an ETF’s shares may be halted if the listing exchange’s officials deem such action appropriate, the shares are delisted from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally. An ETF that tracks an index may not precisely replicate the returns of its benchmark index. To the extent the Fund invests in other investment companies that invest in equity securities, fixed-income securities and/or foreign securities, or that track an index, the Fund are subject to the risks associated with the underlying investments held by the investment company or the index fluctuations to which the investment company is subject. ETFs have expenses associated with their operation, typically including advisory fees. BDCs generally invest in small developing companies, private companies, and thinly traded securities of public companies, and many debt instruments in which a BDC may invest may not be rated by a credit rating agency and may be below investment grade quality. The Fund investments in BDCs may be subject to certain additional risks, including competition for limited investment opportunities, the liquidity of a BDC’s investments, uncertainty as to the value of a BDC’s investments, risks associated with access to capital and leverage, and reliance on the management of a BDC.

Securities Lending Risk

A Fund may lend its portfolio securities to brokers, dealers and financial institutions to seek income. There is a risk that a borrower may default on its obligations to return loaned securities; however, a Fund’s securities lending agent indemnifies the Fund against that risk. There is a risk that the assets of a Fund’s securities lending agent may be insufficient to satisfy any contractual indemnification requirements to the Fund. Borrowers of a Fund’s securities typically provide collateral in the form of cash that is reinvested in securities. A Fund will be responsible for the risks associated with the investment of cash collateral, including any collateral invested in an affiliated money market fund. A Fund may lose money on its investment of cash collateral or may fail to earn sufficient income on its investment to meet obligations to the borrower. In addition, delays may occur in the recovery of securities from borrowers, which could interfere with a Fund’s ability to vote proxies or to settle transactions and there is the risk of possible loss of rights in the collateral should the borrower fail financially. In any case in which the loaned securities are not returned to the Fund before an ex-dividend date, the payment in lieu of the dividend that the Fund receives from the securities’ borrower would not be treated as a dividend for federal income tax purposes and thus would not qualify for treatment as “qualified dividend income”.

7.  Federal Income and Excise Taxes

It is the policy of the Fund to qualify as a regulated investment company (“RIC”), by complying with all applicable provisions of Subchapter M of the Internal Revenue Code, as amended, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes. For federal income tax purposes, the Fund is treated as a single entity for the purpose of determining such qualification.

The Fund does not have any unrecorded tax liabilities in the accompanying financial statements. Each of the tax years in the four year period ended January 31, 2019 remain subject to examination by the Internal Revenue Service. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statement of Operations.

The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on returns of income earned or gains realized or repatriated. Taxes are accrued and applied to net investment income, net realized capital gains and net unrealized appreciation (depreciation), as applicable, as the income is earned or capital gains are recorded.

Dividends are categorized in accordance with income tax regulations which may treat certain transactions differently than U.S. GAAP. Accordingly, the character of distributions and composition of net assets for tax

33

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

purposes may differ from those reflected in the accompanying financial statements. The Fund also utilizes earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction.

As of July 31, 2019 the tax cost for the Fund and their respective gross unrealized appreciation (depreciation) were as follows:

Fund	Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Acadian Emerging Markets Managed Volatility	$	18,599,090	$	1,823,482	$	(279,979	)	$	1,543,503

Under the Regulated Investment Company Modernization Act of 2010 (“RIC MOD”), net capital losses recognized by the Fund in taxable years beginning after December 22, 2010 are carried forward indefinitely and retain their character as short-term and/or long-term losses.

As of January 31, 2019, the Fund did not have any capital loss carryforwards.

8.  Investment Transactions

The aggregate cost of purchases and proceeds from sales and maturities of investments, other than short-term obligations, for the period ended July 31, 2019 were as follows:

Fund	Purchases (non-U.S. Government Securities)		Sales (non-U.S. Government Securities)
Acadian Emerging Markets Managed Volatility	$	3,515,002	$	17,397,455

A summary of the Fund’s transactions in the USG Select Fund for the period ended July 31, 2019 were as follows:

Fund	Type of Transaction	January 31, 2019 Shares/Fair Value		Purchases		Sales		July 31, 2019 Shares/Fair Value		Dividend Income
Acadian Emerging Markets Managed Volatility	Direct	$	392,084	$	9,070,441	$	9,365,342	$	97,183	$	4,031
Acadian Emerging Markets Managed Volatility	Securities Lending		-		644,803		644,803		-		N/A

9.  Securities Lending

The Fund may lend its securities to qualified financial institutions, such as certain broker-dealers, to earn additional income. The borrowers are required to secure their loans continuously with collateral in an amount at least equal to the fair value of the securities loaned, initially in an amount at least equal to 102% of the fair value of domestic securities loaned and 105% of the fair value of international securities loaned. Collateral is monitored and marked-to-market daily. Daily mark-to-market amounts are required to be paid to the borrower or received from the borrower by the end of the following business day. This one day settlement for mark-to-market amounts may result in the collateral being temporarily less than the value of the securities on loan or temporarily more than the required minimum collateral.

To the extent that a loan is collateralized by cash, such cash collateral shall be invested by the securities lending agent (the “Agent”) in money market mutual funds and other short-term investments, provided the investments meet certain quality and diversification requirements. Securities purchased with cash collateral proceeds are listed in the Fund’s Schedule of Investments and the collateral is shown on the Statement of Assets and Liabilities as a payable.

34

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Securities lending income is generated from the demand premium (if any) paid by the borrower to borrow a specific security and from the return on investment of cash collateral, reduced by negotiated rebate fees paid to the borrower and transaction costs. To the extent that a loan is secured by non-cash collateral, securities lending income is generated as a demand premium reduced by transaction costs. The Fund, the Agent, and the Manager retained 80%, 10%, and 10%, respectively, of the income generated from securities lending.

While securities are on loan, the Fund continues to receive certain income associated with that security and any gain or loss in the market price that may occur during the term of the loan. In the case of domestic equities, the value of any dividend is received in the form of a substitute payment approximately equal to the dividend. In the case of foreign securities, a negotiated amount is received that is less than the actual dividend, but higher than the dividend amount minus the foreign tax that the Fund would be subject to on the dividend.

Securities lending transactions pose certain risks to the Fund, including that the borrower may not provide additional collateral when required or return the securities when due, that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower, that non-cash collateral may be subject to legal constraints in the event of a borrower bankruptcy, and that the cash collateral investments could become illiquid and unable to be used to return collateral to the borrower. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the cash collateral available for return to the borrower and any action which impairs its ability to liquidate non-cash collateral to satisfy a borrower default.

Cash collateral is listed on the Fund’s Schedule of Investments and is shown on the Statement of Assets and Liabilities. Income earned on these investments is included in “Income derived from securities lending” on the Statement of Operations.

Non-cash collateral received by the Fund may not be sold or re-pledged except to satisfy a borrower default. Therefore, non-cash collateral is not included on the Fund’s Schedule of Investments or Statement of Assets and Liabilities.

The Fund did not have any securities on loan or hold any securities lending collateral as of the period ended July 31, 2019.

10.  Borrowing Arrangements

Effective November 15, 2018 (the “Effective Date”), the Fund, along with certain other funds managed by the Manager (“Participating Funds”), entered into a committed revolving line of credit (the “Committed Line”) agreement with State Street Bank and Trust Company (the “Bank”) to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Committed Line is $250 million with interest at a rate equal to the higher of (a) one-month London Inter-Bank Offered Rate (“LIBOR”) plus 1.25% per annum or (b) the Federal Funds rate plus 1.25% per annum on amounts borrowed. Each of the Participating Funds will pay a closing fee of $100,000 on the Effective Date and a quarterly commitment fee at a rate of 0.25% per annum on the unused portion of the Committed Line amount. The Committed Line expires November 14, 2019, unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

On the Effective Date, the Fund, along with certain other Participating Funds managed by the Manager, also entered into an uncommitted discretionary demand revolving line of credit (the “Uncommitted Line”) agreement with the Bank to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Uncommitted Line is $50 million with interest at a rate equal to the higher of (a) one-month LIBOR plus 1.25% per annum or (b) the Federal Funds rate plus 1.25% per annum on each outstanding loan. Each of the Participating Funds will pay a closing fee of $35,000 on the Effective Date. The Uncommitted Line expires November 14, 2019 unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

35

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

The Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, along with commitment fees, that have been allocated among the Participating Funds based on average daily net assets.

During the period ended July 31, 2019, the Fund did not utilize this facility.

11.  Capital Share Transactions

The tables below summarize the activity in capital shares for each Class of the Fund:

	Institutional Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Acadian Emerging Markets Managed Volatility Fund	Shares			Amount			Shares			Amount
Shares sold		30,265		$	316,405			102,960		$	1,125,554
Reinvestment of dividends		-			-			24,555			243,835
Shares redeemed		(24,590	)		(260,966	)		(132,463	)		(1,430,096	)
Redemption fees		-			-			-			2,672
Net increase (decrease) in shares outstanding		5,675		$	55,439			(4,948	)	$	(58,035	)
	Y Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Acadian Emerging Markets Managed Volatility Fund	Shares			Amount			Shares			Amount
Shares sold		151,342		$	1,596,159			740,434		$	7,994,911
Reinvestment of dividends		-			-			130,311			1,287,472
Shares redeemed		(1,503,577	)		(15,761,453	)		(710,915	)		(7,703,853	)
Redemption fees		-			-			-			11,668
Net increase (decrease) in shares outstanding		(1,352,235	)	$	(14,165,294	)		159,830		$	1,590,198
	Investor Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Acadian Emerging Markets Managed Volatility Fund	Shares			Amount			Shares			Amount
Shares sold		16,958		$	176,057			55,053		$	582,905
Reinvestment of dividends		-			-			14,395			141,069
Shares redeemed		(60,351	)		(629,367	)		(60,515	)		(635,338	)
Redemption fees		-			-			-			1,281
Net increase (decrease) in shares outstanding		(43,393	)	$	(453,310	)		8,933		$	89,917
	A Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Acadian Emerging Markets Managed Volatility Fund	Shares			Amount			Shares			Amount
Shares sold		89		$	932			6,847		$	74,480
Reinvestment of dividends		-			-			2,107			20,736
Shares redeemed		(2,617	)		(26,560	)		(44,210	)		(477,632	)
Redemption fees		-			-			-			302
Net (decrease) in shares outstanding		(2,528	)	$	(25,628	)		(35,256	)	$	(382,114	)
	C Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Acadian Emerging Markets Managed Volatility Fund	Shares			Amount			Shares			Amount
Shares sold		9,459		$	98,400			2,651		$	27,000
Reinvestment of dividends		-			-			994			9,707
Shares redeemed		(12,644	)		(131,199	)		(26,413	)		(273,213	)
Redemption fees		-			-			-			208
Net (decrease) in shares outstanding		(3,185	)	$	(32,799	)		(22,768	)	$	(236,298	)

36

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

12.  Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

37

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Institutional Class
	Six Months Ended July 31,			Year Ended January 31,
	2019			2019			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	10.59		$	11.78		$	9.22		$	8.36		$	10.24		$	9.59
Income (loss) from investment operations:
Net investment income		0.18			0.20			0.12	A		0.13			0.04			0.13
Net gains (losses) on investments (both realized and unrealized)		(0.25	)		(0.84	)		2.65			0.90			(1.84	)		0.64
Total income (loss) from investment operations		(0.07	)		(0.64	)		2.77			1.03			(1.80	)		0.77
Less distributions:
Dividends from net investment income		-			(0.18	)		(0.21	)		(0.17	)		(0.08	)		(0.12	)
Distributions from net realized gains		-			(0.37	)		-			-			-			-
Tax return of capitalB		-			-			-			-			(0.00	)C		-
Total distributions		-			(0.55	)		(0.21	)		(0.17	)		(0.08	)		(0.12	)
Redemption fees added to beneficial interests		-			0.00	C		0.00	C		0.00	C		0.00	C		0.00	C
Net asset value, end of period	$	10.52		$	10.59		$	11.78		$	9.22		$	8.36		$	10.24
Total returnD		(0.66	)%E		(5.13	)%		30.24	%		12.37	%		(17.58	)%		8.04	%
Ratios and supplemental data:
Net assets, end of period	$	5,106,705		$	5,080,038		$	5,706,260		$	52,787,468		$	40,335,580		$	13,079,558
Ratios to average net assets:
Expenses, before reimbursements		1.90	%F		1.71	%		1.85	%		1.47	%		1.68	%		2.26	%
Expenses, net of reimbursements		1.35	%F		1.35	%		1.35	%		1.35	%		1.35	%		1.35	%
Net investment income, before expense reimbursements		2.79	%F		1.44	%		0.74	%		1.18	%		1.16	%		0.44	%
Net investment income, net of reimbursements		3.34	%F		1.80	%		1.23	%		1.31	%		1.49	%		1.35	%
Portfolio turnover rate		12	%E		28	%		34	%		32	%		35	%		22	%

^A Per share amounts have been calculated using the average shares method.

^B Tax return of capital is calculated based on shares outstanding at the time of distribution.

^C Amount represents less than $0.01 per share.

^D Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^E Not annualized.

^F Annualized.

See accompanying notes

38

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Y Class
	Six Months Ended July 31,			Year Ended January 31,
	2019			2019			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	10.54		$	11.73		$	9.19		$	8.34		$	10.22		$	9.59
Income (loss) from investment operations:
Net investment income		0.07			0.17			0.13			0.11			0.14			0.04
Net gains (losses) on investments (both realized and unrealized)		(0.15	)		(0.81	)		2.62			0.91			(1.94	)		0.71
Total income (loss) from investment operations		(0.08	)		(0.64	)		2.75			1.02			(1.80	)		0.75
Less distributions:
Dividends from net investment income		-			(0.18	)		(0.21	)		(0.17	)		(0.08	)		(0.12	)
Distributions from net realized gains		-			(0.37	)		-			-			-			-
Tax return of capitalA		-			-			-			-			(0.00	)B		-
Total distributions		-			(0.55	)		(0.21	)		(0.17	)		(0.08	)		(0.12	)
Redemption fees added to beneficial interestsB		-			0.00			0.00			0.00			0.00			0.00
Net asset value, end of period	$	10.46		$	10.54		$	11.73		$	9.19		$	8.34		$	10.22
Total returnC		(0.76	)%D		(5.15	)%		30.12	%		12.28	%		(17.64	)%		7.83	%
Ratios and supplemental data:
Net assets, end of period	$	12,337,802		$	26,674,824		$	27,820,209		$	32,606,568		$	25,098,823		$	4,603,907
Ratios to average net assets:
Expenses, before reimbursements		1.96	%E		1.76	%		1.93	%		1.55	%		1.77	%		2.12	%
Expenses, net of reimbursements		1.45	%E		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income, before expense reimbursements		2.22	%E		1.26	%		1.04	%		1.15	%		1.23	%		0.01	%
Net investment income, net of reimbursements		2.73	%E		1.57	%		1.52	%		1.25	%		1.55	%		0.68	%
Portfolio turnover rate		12	%D		28	%		34	%		32	%		35	%		22	%

^A Tax return of capital is calculated based on shares outstanding at the time of distribution.

^B Amount represents less than $0.01 per share.

^C Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^D Not annualized.

^E Annualized.

See accompanying notes

39

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Investor Class
	Six Months Ended July 31,			Year Ended January 31,
	2019			2019			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	10.44		$	11.66		$	9.16		$	8.32		$	10.19		$	9.58
Income (loss) from investment operations:
Net investment income		0.14			0.15			0.11			0.11			0.16			0.07
Net gains (losses) on investments (both realized and unrealized)		(0.23	)		(0.82	)		2.60			0.87			(1.98	)		0.66
Total income (loss) from investment operations		(0.09	)		(0.67	)		2.71			0.98			(1.82	)		0.73
Less distributions:
Dividends from net investment income		-			(0.18	)		(0.21	)		(0.14	)		(0.05	)		(0.12	)
Distributions from net realized gains		-			(0.37	)		-			-			-			-
Tax return of capitalA		-			-			-			-			(0.00	)B		-
Total distributions		-			(0.55	)		(0.21	)		(0.14	)		(0.05	)		(0.12	)
Redemption fees added to beneficial interestsB		-			0.00			0.00			0.00			0.00			0.00
Net asset value, end of period	$	10.35		$	10.44		$	11.66		$	9.16		$	8.32		$	10.19
Total returnC		(0.86	)%D		(5.45	)%		29.78	%		11.89	%		(17.86	)%		7.63	%
Ratios and supplemental data:
Net assets, end of period	$	2,321,336		$	2,793,978		$	3,016,153		$	3,457,789		$	3,933,437		$	4,612,098
Ratios to average net assets:
Expenses, before reimbursements		2.35	%E		2.15	%		2.12	%		1.77	%		1.98	%		2.42	%
Expenses, net of reimbursements		1.73	%E		1.73	%		1.73	%		1.73	%		1.73	%		1.73	%
Net investment income, before expense reimbursements		2.17	%E		0.93	%		0.82	%		0.94	%		1.30	%		0.12	%
Net investment income, net of reimbursements		2.79	%E		1.35	%		1.21	%		0.98	%		1.55	%		0.81	%
Portfolio turnover rate		12	%D		28	%		34	%		32	%		35	%		22	%

^A Tax return of capital is calculated based on shares outstanding at the time of distribution.

^B Amount represents less than $0.01 per share.

^C Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^D Not annualized.

^E Annualized.

See accompanying notes

40

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	A Class
	Six Months Ended July 31,			Year Ended January 31,
	2019			2019			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	10.48		$	11.69		$	9.18		$	8.34		$	10.18		$	9.58
Income (loss) from investment operations:
Net investment income		0.14			0.10			0.10			0.13			0.12			0.06
Net gains (losses) on investments (both realized and unrealized)		(0.23	)		(0.78	)		2.62			0.85			(1.94	)		0.66
Total income (loss) from investment operations		(0.09	)		(0.68	)		2.72			0.98			(1.82	)		0.72
Less distributions:
Dividends from net investment income		-			(0.16	)		(0.21	)		(0.14	)		(0.02	)		(0.12	)
Distributions from net realized gains		-			(0.37	)		-			-			-			-
Tax return of capitalA		-			-			-			-			(0.00	)B		-
Total distributions		-			(0.53	)		(0.21	)		(0.14	)		(0.02	)		(0.12	)
Redemption fees added to beneficial interestsB		-			0.00			0.00			0.00			0.00			0.00
Net asset value, end of period	$	10.39		$	10.48		$	11.69		$	9.18		$	8.34		$	10.18
Total returnC		(0.86	)%D		(5.52	)%		29.83	%		11.84	%		(17.90	)%		7.53	%
Ratios and supplemental data:
Net assets, end of period	$	362,384		$	391,973		$	849,017		$	510,236		$	740,272		$	3,214,591
Ratios to average net assets:
Expenses, before reimbursements		2.18	%E		2.02	%		2.24	%		1.90	%		2.10	%		2.49	%
Expenses, net of reimbursements		1.75	%E		1.75	%		1.75	%		1.75	%		1.75	%		1.77	%
Net investment income, before expense reimbursements		2.40	%E		1.06	%		0.61	%		0.86	%		1.08	%		0.09	%
Net investment income, net of reimbursements		2.83	%E		1.33	%		1.10	%		1.01	%		1.43	%		0.81	%
Portfolio turnover rate		12	%D		28	%		34	%		32	%		35	%		22	%

^A Tax return of capital is calculated based on shares outstanding at the time of distribution.

^B Amount represents less than $0.01 per share.

^C Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^D Not annualized.

^E Annualized.

See accompanying notes

41

American Beacon Acadian Emerging Markets Managed Volatility Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	C Class
	Six Months Ended July 31,			Year Ended January 31,
	2019			2019			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	10.40		$	11.55		$	9.08		$	8.23		$	10.10		$	9.55
Income (loss) from investment operations:
Net investment income		0.08			0.02			0.06			0.02			0.10			0.02
Net gains (losses) on investments (both realized and unrealized)		(0.20	)		(0.76	)		2.54			0.89			(1.97	)		0.62
Total income (loss) from investment operations		(0.12	)		(0.74	)		2.60			0.91			(1.87	)		0.64
Less distributions:
Dividends from net investment income		-			(0.04	)		(0.13	)		(0.06	)		(0.00	)A		(0.09	)
Distributions from net realized gains		-			(0.37	)		-			-			-			-
Tax return of capitalB		-			-			-			-			(0.00	)A		-
Total distributions		-			(0.41	)		(0.13	)		(0.06	)		(0.00	)A		(0.09	)
Redemption fees added to beneficial interestsA		-			0.00			0.00			0.00			0.00			0.00
Net asset value, end of period	$	10.28		$	10.40		$	11.55		$	9.08		$	8.23		$	10.10
Total returnC		(1.15	)%D		(6.19	)%		28.71	%		11.11	%		(18.50	)%		6.66	%
Ratios and supplemental data:
Net assets, end of period	$	180,920		$	216,223		$	503,049		$	450,626		$	644,705		$	623,506
Ratios to average net assets:
Expenses, before reimbursements		2.99	%E		2.77	%		3.00	%		2.67	%		2.87	%		3.26	%
Expenses, net of reimbursements		2.50	%E		2.50	%		2.50	%		2.50	%		2.50	%		2.52	%
Net investment income (loss), before expense reimbursements		1.46	%E		0.54	%		(0.01	)%		0.11	%		0.40	%		(0.90	)%
Net investment income (loss), net of reimbursements		1.95	%E		0.81	%		0.49	%		0.28	%		0.77	%		(0.16	)%
Portfolio turnover rate		12	%D		28	%		34	%		32	%		35	%		22	%

^A Amount represents less than $0.01 per share.

^B Tax return of capital is calculated based on shares outstanding at the time of distribution.

^C Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^D Not annualized.

^E Annualized.

See accompanying notes

42

Disclosure Regarding Approval of the Management and Investment Advisory Agreements

July 31, 2019 (Unaudited)

Renewal and Approval of Management Agreement and Investment Advisory Agreement

At in-person meetings held on May 9, 2019 and June 4-5, 2019 (collectively, the “Meetings”), the Board of Trustees (“Board” or “Trustees”) considered and then, at its June 5, 2019 meeting, approved the renewal of:

(1) the Management Agreement between American Beacon Advisors, Inc. (“Manager”) and the American Beacon Funds (“Trust”), on behalf of the American Beacon Acadian Emerging Markets Managed Volatility Fund (“Fund”); and

(2) the Investment Advisory Agreement among the Manager, Acadian Asset Management LLC (the “subadvisor”), and the Trust, on behalf of the Fund.

The Management Agreement and the Investment Advisory Agreement are referred to herein individually as an “Agreement” and collectively as the “Agreements.” In preparation for its consideration of the renewal of the Agreements, the Board undertook steps to gather and consider information furnished by the Manager, the subadvisor, Broadridge, Inc. (“Broadridge”) and Morningstar, Inc. (“Morningstar”). The Board, with the assistance of independent legal counsel, requested and received certain relevant information from the Manager and the subadvisor.

In advance of the Meetings, the Board’s Investment Committee and/or the Manager coordinated the production of information from Broadridge and Morningstar regarding the performance, fees and expenses of the Fund as well as information from the Manager and the subadvisor. At the Meetings, the Board considered the information provided in connection with the renewal process, as well as information furnished to the Board throughout the year at regular meetings of the Board and its committees. In connection with the Board’s consideration of the Agreements, the Board received and evaluated such information as they deemed necessary. This information is described below in the section summarizing the factors the Board considered in connection with its renewal and approval of the Agreements, as well as the section describing additional Board considerations with respect to the Fund.

The Board noted that the Manager provides management and administrative services to the Fund pursuant to the Management Agreement. The Board considered that many mutual funds have separate contracts governing each type of service and observed that, with respect to such mutual funds, the actual management fee rates provided by Broadridge for peer group funds reflect the combined advisory and administrative expenses, reduced by any fee waivers and/or reimbursements.

A firm may not have been able to, or opted not to, provide information in response to certain information requests, in which case the Board conducted its evaluation of the firm based on information that was provided. In such cases, the Board determined that the omission of any such information was not material to its considerations. The class of shares used for comparative performance purposes was the share class with the lowest expenses available for purchase by the general public, which was the Institutional Class. The Board also considered that the use of Institutional Class performance generally facilitates a meaningful comparison for expense and performance purposes.

Provided below is an overview of certain factors the Board considered in connection with its renewal and approval of the Agreements. The Board did not identify any particular information that was most relevant to its consideration to renew or approve each Agreement, and each Trustee may have afforded different weight to the various factors. Legal counsel to the independent Trustees provided the Board with a memorandum regarding its responsibilities pertaining to the renewal and approval of investment advisory contracts, such as the Agreements. The memorandum explained the regulatory requirements surrounding the Board’s process for evaluating investment advisors and the terms of investment advisory contracts. Based on its evaluation, the Board unanimously concluded that the terms of each Agreement were reasonable and fair and that the renewal and approval of each Agreement was in the best interests of the Fund and its shareholders.

43

Disclosure Regarding Approval of the Management and Investment Advisory Agreements

July 31, 2019 (Unaudited)

Considerations With Respect to the Renewal of the Management Agreement and the Investment Advisory Agreement

In determining whether to renew the Agreements, the Board considered the Fund’s investment management and subadvisory relationships separately.     In each instance, the Board considered, among other things, the following factors: (1) the nature, extent and quality of the services provided; (2) the investment performance of the Fund; (3) the costs incurred by the Manager in rendering services to the Fund and its resulting profits or losses; (4) comparisons of services and fee rates with contracts entered into by the Manager or the subadvisor or their affiliates with other clients (such as pension funds and other institutional clients); (5) the extent to which economies of scale, if any, have been taken into account in setting each fee rate schedule; (6) whether fee rate levels reflect economies of scale, if any, for the benefit of Fund investors; and (7) any other benefits derived or anticipated to be derived by the Manager or the subadvisor from their relationships with the Fund.

Nature, Extent and Quality of Services. With respect to the renewal of the Management Agreement, the Board considered, among other factors: the Fund’s long-term performance; the length of service of key investment personnel at the Manager; the cost structure of the Fund; the Manager’s culture of compliance and support that reduce risks to the Fund; the Manager’s quality of services; the Manager’s active role in monitoring and, as appropriate, recommending additional or replacement subadvisors; and the Manager’s efforts to retain key employees and maintain staffing levels.

With respect to the renewal of the Investment Advisory Agreement, the Board considered the level of staffing and the size of the subadvisor. The Board also considered the adequacy of the resources committed to the Fund by the subadvisor, and whether those resources were commensurate with the needs of the Fund and are sufficient to sustain appropriate levels of performance and compliance needs. In this regard, the Board considered the financial stability of the subadvisor. The Board also considered the subadvisor’s representations regarding its compliance program and code of ethics. Based on the foregoing information, the Board concluded that the nature, extent and quality of the management and advisory services provided by the Manager and the subadvisor were appropriate for the Fund.

Investment Performance. The Board evaluated the comparative information provided by Broadridge and the Manager regarding the performance of the Fund relative to its Broadridge performance universe, Morningstar Category, and benchmark index, as well as the Fund’s Morningstar rating. The Board considered the information provided by Broadridge regarding Broadridge’s independent methodology for selecting the Fund’s Broadridge performance universe. The Board also considered that the performance universes selected by Broadridge may not provide appropriate comparisons for the Fund. In addition, the Board considered the performance reports and discussions with management at Board and Committee meetings throughout the year. The Board also evaluated the comparative information provided by the subadvisor regarding the performance of the Fund relative to the performance of a composite of similar accounts managed by the subadvisor and the Fund’s benchmark index. In addition, the Board considered the Manager’s recommendation to continue to retain the subadvisor. A discussion regarding the Board’s considerations with respect to the Fund’s performance appears below under “Additional Considerations and Conclusions with Respect to the Fund.”

Costs of the Services Provided to the Fund and the Profits Realized by the Manager from its Relationship with the Fund. In analyzing the cost of services and profitability of the Manager, the Board considered the revenues earned and the expenses incurred by the Manager, before and after the payment of distribution-related expenses by the Manager. The profits or losses were noted at both an aggregate level for all funds within the group of mutual funds sponsored by the Manager (the “Fund Complex”) and at an individual Fund level, with the Manager sustaining a loss before and after the payment of distribution-related expenses by the Manager for the Fund. The Board also considered comparative information provided by the Manager regarding the Manager’s overall profitability with respect to the Fund Complex relative to the overall profitability of other firms in the mutual fund industry, as disclosed in publicly available sources. Although the Board noted that, in certain cases, the fee rates paid by other clients of the Manager are lower than the fee rates paid by the Fund, the Manager represented that,

44

Disclosure Regarding Approval of the Management and Investment Advisory Agreements

July 31, 2019 (Unaudited)

among other matters, the difference is attributable to the fact that the Manager does not perform administrative services for non-investment company clients and reflects the greater level of responsibility and regulatory requirements associated with managing the Fund.

The Board also noted that the Manager proposed to continue the expense waivers and reimbursements for the Fund that were in place during the last fiscal year. The Board further considered that, with respect to the Fund, the Management Agreement provides for the Manager to receive a management fee comprised of an annualized fee that is retained by the Manager. In addition, the Board considered that the Manager receives fees for overseeing the securities lending program on behalf of the Fund. The Board also noted that certain share classes of the Fund maintain higher expense ratios in order to compensate third-party financial intermediaries.

In analyzing the fee rates charged by the subadvisor in connection with its investment advisory services to the Fund, the Board considered representations made by the subadvisor that the fee rate negotiated by the Manager is favorable relative to the fee rates that the subadvisor charges for any comparable client accounts. The Board did not request profitability data from the subadvisor because the Board did not view this data as imperative to its deliberations given the arm’s-length nature of the relationship between the Manager and the subadvisor with respect to the negotiation of subadvisory fee rates. In addition, the Board noted that the subadvisor may not account for its profits on an account-by-account basis and that different firms likely employ different methodologies in connection with these calculations.

Based on the foregoing information, the Board concluded that the profitability levels of the Manager were reasonable in light of the services performed by the Manager. A discussion regarding the Board’s considerations with respect to the Fund’s fee rates is set forth below under “Additional Considerations and Conclusions with Respect to the Fund.”

Economies of Scale. In considering the reasonableness of the management and investment advisory fees rates, the Board considered whether economies of scale will be realized as the Fund grows and whether fee rate levels reflect these economies of scale for the benefit of Fund shareholders. In this regard, the Board considered that the Manager has negotiated breakpoints in the subadvisory fee rate for the Fund.

In addition, the Board noted the Manager’s representation that the Management Agreement contains fee schedule breakpoints at higher asset levels with respect to the Fund. Based on the foregoing information, the Board concluded that the Manager and subadvisor fee rate schedules for the Fund provide for a reasonable sharing of benefits from any economies of scale with the Fund.

Benefits Derived from the Relationship with the Fund. The Board considered the “fall-out” or ancillary benefits that accrue to the Manager and/or the subadvisor as a result of the advisory relationships with the Fund, including greater exposure in the marketplace with respect to the Manager’s or the subadvisor’s investment process and expanding the level of assets under management by the Manager and the subadvisor.    The Board also considered that the Manager may invest the Fund’s cash balances and cash collateral provided by the borrowers of the Fund’s securities in the American Beacon U.S. Government Money Market Select Fund, which the Manager manages directly. Based on the foregoing information, the Board concluded that the potential benefits accruing to the Manager and the subadvisor by virtue of their relationships with the Fund appear to be fair and reasonable.

Additional Considerations and Conclusions with Respect to the Fund

The performance comparisons below were made in comparison to the Fund’s Broadridge performance universe and Morningstar Category. With respect to the Broadridge performance universe, the 1^st Quintile represents the top 20 percent of the universe based on performance and the 5^th Quintile representing the bottom 20 percent of the universe based on performance. References below to the Fund’s Broadridge performance universe are to the universe of mutual funds with a comparable investment classification/objective included in the analysis provided by Broadridge. In reviewing the performance, the Trustees viewed longer-term performance over

45

Disclosure Regarding Approval of the Management and Investment Advisory Agreements

July 31, 2019 (Unaudited)

a full market cycle as the most important consideration, because relative performance over shorter periods may be significantly impacted by market or economic events and not necessarily reflective of manager skill.

The expense comparisons below were made in comparison to the Fund’s Broadridge expense universe and Broadridge expense group, with the 1^st Quintile representing the lowest 20 percent of the universe or group based on lowest total expense and the 5^th Quintile representing the highest 20 percent of the universe or group based on highest total expense. References below to the Fund’s expense group and expense universe are to the respective group or universe of comparable mutual funds included in the analysis by Broadridge. A Broadridge expense group consists of the Fund and a representative sample of funds with similar operating structures and asset sizes, as selected by Broadridge. A Broadridge expense universe includes all funds in the investment classification/objective with a similar operating structure as the share class of the Fund included in the Broadridge comparative information and provides a broader view of expenses across the Fund’s investment classification/objective. The Board also considered the Fund’s Morningstar fee level category. In reviewing expenses, the Board considered the positive impact of fee waivers where applicable and the Manager’s agreement to continue the fee waivers. In addition, information regarding the subadvisor’s use of soft dollars was requested from the Manager and was considered by the Board.

In considering the renewal of the Management Agreement and the Investment Advisory Agreement with the subadvisor for the Fund, the Board considered the following additional factors:

Broadridge Total Expenses Excluding 12b-1 Fees and Morningstar Fee Level Ranking

Compared to Broadridge Expense Group	4th Quintile
Compared to Broadridge Expense Universe	5th Quintile
Morningstar Fee Level Ranking – Institutional Class	High Expense Ratio

Broadridge and Morningstar Performance Analysis (five-year period ended December 31, 2018)

Compared to Broadridge Performance Universe	2nd Quintile
Compared to Morningstar Category	2nd Quintile

The Board also considered: (1) that the subadvisor’s defensive investment process is designed to construct a portfolio of securities that exhibit less volatility than is typical of emerging markets; (2) the Manager’s representation regarding the challenges associated with identifying a peer group for evaluating the Fund’s expenses and performance because none of the funds in the Fund’s Broadridge expense group, expense universe or performance universe or Morningstar category pursue an investment strategy comparable to the Fund’s strategy; (3) information provided by the subadvisor regarding the fee rate charged for managing an account in the same or a similar strategy as the subadvisor manages the Fund; (4) the additional expenses associated with the greater number of securities in the Fund’s portfolio relative to its Broadridge expense group and expense universe; and (5) the Manager’s recommendation to continue to retain the subadvisor.

Based on these and other considerations, the Board: (1) concluded that the fees paid to the Manager and subadvisor under the Management and Investment Advisory Agreements are fair and reasonable; and (2) determined that the Fund and its shareholders would benefit from the Manager’s and subadvisor’s continued management of the Fund.

46

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48

Delivery of Documents

eDelivery is NOW AVAILABLE - Stop traditional mail delivery and receive your

shareholder reports and summary prospectus on-line. Sign up at

www.americanbeaconfunds.com

If you invest in the Fund through a financial institution, you may be able to receive the Fund’s regulatory mailings, such as the Prospectus, Annual Report and Semi-Annual Report, by e-mail. If you are interested in this option, please go to www.icsdelivery.com and search for your financial institution’s name or contact your financial institution directly.

To obtain more information about the Fund:

By E-mail:	On the Internet:
american_beacon.funds@ambeacon.com	Visit our website at www.americanbeaconfunds.com
By Telephone: Call (800) 658-5811	By Mail: American Beacon Funds P.O. Box 219643 Kansas City, MO 64121-9643
Availability of Quarterly Portfolio Schedules	Availability of Proxy Voting Policy and Records
In addition to the Schedule of Investments provided in each semi-annual and annual report, the Fund files a complete schedule of its portfolio holdings with the Securities and Exchange Commission (“SEC”) on Form N-Q as of the first and third fiscal quarters. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-2736. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling (800)-SEC-0330. A complete schedule of the American Beacon Acadian Emerging Markets Managed Volatility Fund’s portfolio holdings is also available at www.americanbeaconfunds.com approximately sixty days after the end of each quarter.	A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Fund’s Statement of Additional Information, is available free of charge on the Fund’s website www.americanbeaconfunds.com and by calling 1-800-967-9009 or by accessing the SEC’s website at www.sec.gov. The Fund’s proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Fund’s Forms N-PX are available on the SEC’s website at www.sec.gov. The Fund’s proxy voting record may also be obtained by calling 1-800-967-9009.

Fund Service Providers:

CUSTODIAN State Street Bank and Trust Company Boston, Massachusetts TRANSFER AGENT DST Asset Managers Solutions, Inc. Quincy, Massachusetts INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP Boston, Massachusetts DISTRIBUTOR Resolute Investment Distributors, Inc. Irving, Texas

This report is prepared for shareholders of the American Beacon Funds and may be distributed to others only if preceded or accompanied by a current Prospectus or Summary Prospectus.

American Beacon Funds and American Beacon Acadian Emerging Markets Managed Volatility Fund are service marks of American Beacon Advisors, Inc.

SAR 7/19

About American Beacon Advisors

Since 1986, American Beacon Advisors has offered a variety of products and investment advisory services to numerous institutional and retail clients, including a variety of mutual funds, corporate cash management, and separate account management.

Our clients include defined benefit plans, defined contribution plans, foundations, endowments, corporations, financial planners, and other institutional investors. With American Beacon Advisors, you can put the experience of a multi-billion dollar asset management firm to work for your company.

CONTINUOUS CAPITAL EMERGING MARKETS FUND

Investing in foreign and emerging market securities may involve heightened risk due to currency fluctuations and economic and political risks. The Fund may have high portfolio turnover, which could increase the Fund’s transaction costs and possibly have a negative impact on performance. 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.

Any opinions herein, including forecasts, reflect our judgment as of the end of the reporting period and are subject to change. Each advisor’s strategies and each Fund’s portfolio composition will change depending on economic and market conditions. This report is not a complete analysis of market conditions, and, therefore, should not be relied upon as investment advice. Although economic and market information has been compiled from reliable sources, American Beacon Advisors, Inc. makes no representation as to the completeness or accuracy of the statements contained herein.

American Beacon Funds July 31, 2019

Contents

President’s Message	1
Performance Overview	2
Expense Examples	4
Schedule of Investments:
American Beacon Continuous Capital Emerging Markets Fund	6
Financial Statements	12
Notes to Financial Statements	15
Financial Highlights:
American Beacon Continuous Capital Emerging Markets Fund	32

Additional Fund Information Back Cover

President’s Message

Dear Shareholders,   At American Beacon, we take our heritage as a fiduciary very seriously – and we apply that mindset to all aspects of our business as a fund manager. As a result, for more than 30 years, we have endeavored to:   u   Identify, engage and oversee the best money managers. As a manager of managers, our goal is to engage the most effective money managers for each asset class, investment style and market strategy we offer. We are committed to partnering with those we judge to be “the best of the best” when it comes to choosing sub-advisors for our mutual funds. Whether our due-diligence process results in the selection of one sub-advisor or multiple sub-advisors, we select those we believe show the greatest potential to help us meet the high standards you’ve come to expect.

u Offer a variety of innovative investment solutions. Our mutual funds – which span the domestic, international, global, frontier and emerging markets – are sub-advised by experienced money managers who employ distinctive, proprietary investment processes to manage assets through a variety of economic and market conditions. From offering some of the first multi-manager funds, one of the first retirement income funds and the first open-ended mutual fund in the U.S. to focus primarily on frontier-market debt, our robust history includes applying a disciplined, solutions-based approach to our product development process in an effort to help you grow your assets while mitigating risk.

u Provide a solutions-based approach to achieving long-term investment goals. We seek to provide investment solutions that might enable you to benefit from taking a more disciplined approach to investing. Our mutual funds provide access to institutional-quality, research-intensive investment managers with diverse processes and styles. Over the long run, having such access and spending time in the market – rather than trying to time the market – may better position you to reach your long-term investment goals during market upswings and potentially insulate against market downswings.

Our management approach is more than a concept; it’s the cornerstone of American Beacon’s culture. And we strive to employ it at every turn as we seek to provide a well-diversified line of investment solutions to help our shareholders seek long-term rewards.

Thank you for your continued interest in American Beacon. For additional information about our mutual funds or to access your account information, please visit our website at www.americanbeaconfunds.com.

Best Regards,

Gene L. Needles, Jr.

President

American Beacon Funds

1

American Beacon Continuous Capital Emerging Markets Fund^SM

Performance Overview

July 31, 2019 (Unaudited)

The Investor Class of the American Beacon Continuous Capital Emerging Markets Fund (the “Fund”) returned 2.86% for the six-month period ending July 31, 2019. The Fund outperformed the MSCI Emerging Markets Index (the “Index”) return of 0.44% for the same period.

Average Annual Total Returns for the Period ended July 31, 2019
	Ticker		6 Months*			Since Inception (12/17/2018)*
Institutional Class (1,3)		CCEIX		3.04	%		11.80	%
Y Class (1,3)		CCEYX		3.04	%		11.80	%
Investor Class (1,3)		CCEPX		2.86	%		11.50	%
MSCI Emerging Markets Index (2)				0.44	%		9.26	%

* Not Annualized.

1. 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 calculated based on the published end of day net asset values as of the 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, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights. A portion of the fees charged to each Class of the Fund has been waived since Fund inception. Performance prior to waiving fees was lower than the actual returns shown since inception.

2. The MSCI Emerging Markets Index is a market capitalization weighted index composed of companies that are representative of the market structure of developing countries in Latin America, Asia, Eastern Europe, the Middle East and Africa. The MSCI^® information contained herein: (1) is provided “as is,” (2) is proprietary to MSCI and/or its content providers, (3) may not be used to create any financial instruments or products or any indexes and (4) may not be copied or distributed without MSCI’s express written consent. MSCI disclaims all warranties with respect to the information. Neither MSCI nor its content providers are responsible for any damages or losses arising from any use of this information. One cannot directly invest in an index.

3. The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the Institutional, Y and Investor Class shares were 2.42%, 2.52% and 2.80%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

The Fund outperformed the Index due to security selection as sector allocation was effectively neutral.

From a security selection standpoint, the Fund’s holdings in the Industrials, Financials and Consumer Discretionary sectors contributed positively to performance. In the Industrials sector, top performers over the period included China Lesso Group Holdings Ltd. (up 57.3%), Luxshare Precision Industry Co., Ltd. Class A (up 45.6%) and Companhia de Locacao das Americas (up 28.2%). In the Financials sector, positions in KrungThai Card PCL, NVDR (up 66.7%), Bank Tabungan Pensiunan Nasional Syariah Tbk PT (up 41.5%) and AEON Thana Sinsap Thailand PCL, NVDR (up 37.0%) added the most value to performance. In the Consumer Discretionary sector, positions in Com7 PCL, NVDR (up 75.8%), Gree Electric Appliances, Inc. of Zhuhai, Class A (up 35.4%) and ANTA Sports Products Ltd. (up 43.3%) contributed positively. Slightly offsetting the aforementioned outperformance was security selection in the Materials sector. Soda Sanayii (down 16.3%), Castrol India Ltd. (down 20.9%) and UPL Ltd. (down 10.9%) were the largest detractors from performance.

Looking forward, the Fund’s sub-advisor will continue to focus on its iterative investment process of constructing a portfolio of high-quality companies with consistent value and income characteristics.

2

American Beacon Continuous Capital Emerging Markets Fund^SM

Performance Overview

July 31, 2019 (Unaudited)

Top Ten Holdings (% Net Assets)
Sinbon Electronics Co., Ltd.		0.9
Alupar Investimento S.A.		0.8
China Lesso Group Holdings Ltd.		0.8
Com7 PCL, NVDR		0.8
Krungthai Card PCL, NVDR		0.8
Novatek PJSC, Sponsored GDR		0.8
Sul America S.A.		0.8
Techtronic Industries Co., Ltd.		0.8
Tisco Financial Group PCL, NVDR		0.8
Xtep International Holdings Ltd.		0.8
Total Fund Holdings	142
Sector Allocation (% Equities)
Financials		26.1
Information Technology		15.4
Industrials		12.2
Consumer Discretionary		8.8
Consumer Staples		7.7
Communication Services		7.6
Health Care		6.3
Energy		4.2
Real Estate		4.1
Materials		4.0
Utilities		3.6
Country Allocation (% Equities)
China		27.3
Taiwan		11.4
Republic of Korea		9.5
India		9.1
Brazil		7.4
South Africa		5.5
Indonesia		4.9
Russia		4.4
Philippines		4.1
Thailand		3.9
Mexico		2.8
Malaysia		2.6
Hong Kong		2.1
United Arab Emirates		1.5
Singapore		1.4
Turkey		0.8
Chile		0.7
United Kingdom		0.6

3

American Beacon Funds^SM

Expense Examples

July 31, 2019 (Unaudited)

Fund Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees, if applicable, and (2) ongoing costs, including management fees, distribution (12b-1) fees, sub-transfer agent fees, and other Fund expenses. The Examples are intended to help you understand the ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from February 1, 2019 through July 31, 2019.

Actual Expenses

The “Actual” lines of the tables provide information about actual account values and actual expenses. You may use the information on this page, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = $8.60), then multiply the result by the “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. Shareholders of the Investor and Institutional Classes that invest in the Fund through an IRA or Roth IRA may be subject to a custodial IRA fee of $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 higher.

Hypothetical Example for Comparison Purposes

The “Hypothetical” lines of the tables provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed 5% per year rate of return before expenses (not the Fund’s actual return). You may compare the ongoing costs of investing in the Fund with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Shareholders of the Investor and Institutional Classes that invest in the Funds through an IRA or Roth IRA may be subject to a custodial IRA fee of $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 higher.

You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs charged by the Fund, such as sales charges (loads) or redemption fees, as applicable. Similarly, the expense examples for other funds do not reflect any transaction costs charged by those funds, such as sales charges (loads), redemption fees or exchange fees. Therefore, the “Hypothetical” lines of the tables are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If you were subject to any transaction costs during the period, your costs would have been higher.

4

American Beacon Continuous Capital Emerging Markets Fund^SM

Expense Example

July 31, 2019 (Unaudited)

American Beacon Continuous Capital Emerging Markets Fund
	Beginning Account Value 2/1/2019		Ending Account Value 7/31/2019		Expenses Paid During Period 2/1/2019-7/31/2019*
Institutional Class
Actual		$1,000.00		$1,030.40		$5.79
Hypothetical**		$1,000.00		$1,019.09		$5.76
Y Class
Actual		$1,000.00		$1,030.40		$6.29
Hypothetical**		$1,000.00		$1,018.60		$6.26
Investor Class
Actual		$1,000.00		$1,028.60		$7.70
Hypothetical**		$1,000.00		$1,017.21		$7.65

* Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 1.15%, 1.25%, and 1.53% for the Institutional, Y, and Investor Classes, respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half-year period.

** 5% return before expenses.

5

American Beacon Continuous Capital Emerging Markets Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Shares		Fair Value
Brazil - 7.15%
Common Stocks - 7.15%
Alupar Investimento S.A.		5,800		$	40,289
B3 S.A. - Brasil Bolsa Balcao		3,506			38,759
Banco do Brasil S.A.		2,796			36,060
Banco do Estado do Rio Grande do Sul S.A., Class B		6,270			38,625
Cia de Locacao das Americas		2,900			37,995
IRB Brasil Resseguros S/A		1,430			35,597
Petrobras Distribuidora S.A.		5,537			38,593
Qualicorp Consultoria e Corretora de Seguros S.A.		6,500			37,845
Sul America S.A.		3,608			39,726
Vale S.A., Sponsored ADR		2,678			34,787
Total Common Stocks					378,276
Total Brazil (Cost $311,656)					378,276
Chile - 0.64% (Cost $38,396)
Common Stocks - 0.64%
Enel Chile S.A.		371,359			33,659
China - 26.21%
Common Stocks - 26.21%
Alibaba Group Holding Ltd., Sponsored ADRA		218			37,738
Anhui Gujing Distillery Co., Ltd., Class AB		2,000			34,812
Anhui Kouzi Distillery Co., Ltd., Class AB		3,900			34,174
ANTA Sports Products Ltd.B		5,205			38,687
Bank of China Ltd., Class HB		80,598			32,713
Bank of Communications Co., Ltd., Class HB		45,125			32,813
Bestsun Energy Co., Ltd., Class AB		31,300			33,449
China Construction Bank Corp., Class HB		42,814			32,962
China Isotope & Radiation Corp.B		14,600			35,003
China Lesso Group Holdings Ltd.B		44,000			40,483
China Lilang Ltd.B		39,963			35,483
China Medical System Holdings Ltd.B		38,000			36,130
China Mobile Ltd.B		4,082			34,747
China Telecom Corp. Ltd., Class HB		74,000			33,168
China Traditional Chinese Medicine Holdings Co., Ltd.B		78,453			35,791
CITIC Telecom International Holdings Ltd.B		88,883			36,439
Consun Pharmaceutical Group Ltd.B		57,967			35,150
ENN Energy Holdings Ltd.B		3,494			36,117
Gree Electric Appliances, Inc. of Zhuhai, Class AB		4,400			34,860
Guangdong Provincial Expressway Development Co., Ltd., Class AB		30,500			34,719
Hubei Jumpcan Pharmaceutical Co., Ltd., Class AB		7,600			33,174
Industrial & Commercial Bank of China Ltd., Class HB		51,196			34,461
Jiangsu Expressway Co., Ltd., Class HB		25,754			34,727
Jiangsu Yanghe Brewery Joint-Stock Co., Ltd., Class AB		2,063			34,796
Joyoung Co., Ltd., Class AB		11,740			34,952
Longfor Group Holdings Ltd.B C		10,424			38,327
Luxshare Precision Industry Co., Ltd., Class AB		11,830			36,763
NetEase, Inc., ADR		130			30,007
Qingdao Port International Co., Ltd., Class HB C		46,629			33,275
Shanghai Pharmaceuticals Holding Co., Ltd., Class HB		18,148			35,001
Sinopharm Group Co., Ltd., Class HB		10,089			37,234
Sinosoft Technology Group Ltd.B		133,548			35,953
SITC International Holdings Co., Ltd.B		35,000			38,244
Tencent Holdings Ltd., ADR		787			36,596
Tencent Holdings Ltd.B		822			38,445
Wuliangye Yibin Co., Ltd., Class AB		2,100			36,616
Xtep International Holdings Ltd.B		57,813			41,729
Yum China Holdings, Inc.		763			34,717

See accompanying notes

6

American Beacon Continuous Capital Emerging Markets Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Shares		Fair Value
China - 26.21% (continued)
Common Stocks - 26.21% (continued)
Zhejiang Expressway Co., Ltd., Class HB		37,785		$	36,723
Total Common Stocks					1,387,178
Total China (Cost $1,365,394)					1,387,178
Hong Kong - 2.05%
Common Stocks - 2.05%
AIA Group Ltd., Sponsored ADRD		886			36,371
Sun Hung Kai Properties Ltd.B		2,000			32,143
Techtronic Industries Co., Ltd.B		5,313			39,780
Total Common Stocks					108,294
Total Hong Kong (Cost $94,663)					108,294
India - 8.02%
Common Stocks - 8.02%
Aurobindo Pharma Ltd.B		4,384			36,200
Castrol India Ltd.B		20,627			36,192
HCL Technologies Ltd.B		2,389			35,811
Hexaware Technologies Ltd.B		6,574			34,510
Infosys Ltd.B		3,142			35,916
Mahanagar Gas Ltd.B		3,088			36,194
Manappuram Finance Ltd.B		21,674			35,606
Mphasis Ltd.B		2,437			33,035
Muthoot Finance Ltd.B		4,222			37,402
Petronet LNG Ltd.B		10,159			34,736
Sonata Software Ltd.B		7,239			33,988
UPL Ltd.B		4,033			34,819
Total Common Stocks					424,409
Total India (Cost $463,748)					424,409
Indonesia - 4.69%
Common Stocks - 4.69%
Bank Negara Indonesia Persero Tbk PTB		55,452			32,685
Bank Rakyat Indonesia Persero Tbk PTB		119,769			38,168
Bank Tabungan Pensiunan Nasional Syariah Tbk PTA B		163,100			36,865
Gudang Garam Tbk PTB		6,600			35,539
Sarana Menara Nusantara Tbk PTB		680,652			35,839
Waskita Beton Precast Tbk PTB		1,227,938			31,739
Wijaya Karya Persero Tbk PTB		226,300			37,599
Total Common Stocks					248,434
Total Indonesia (Cost $233,893)					248,434
Malaysia - 2.51%
Common Stocks - 2.51%
LPI Capital BhdB		8,800			33,319
RHB Bank BhdB		24,479			32,632
Serba Dinamik Holdings BhdB		35,841			34,744
Syarikat Takaful Malaysia Keluarga BhdB		21,700			31,987
Total Common Stocks					132,682
Total Malaysia (Cost $137,111)					132,682
Mexico - 2.68%
Common Stocks - 2.68%
Grupo Aeroportuario del Centro Norte S.A.B. de C.V., ADR		738			36,398
Grupo Aeroportuario del Pacifico S.A.B. de C.V., Class B		3,612			36,245

See accompanying notes

7

American Beacon Continuous Capital Emerging Markets Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Shares		Fair Value
Mexico - 2.68% (continued)
Common Stocks - 2.68% (continued)
Grupo Financiero Banorte S.A.B. de C.V.		6,833		$	34,183
Wal-Mart de Mexico S.A.B. de C.V.		11,800			34,821
Total Common Stocks					141,647
Total Mexico (Cost $129,002)					141,647
Philippines - 3.90%
Common Stocks - 3.90%
Ayala Corp.B		1,911			35,921
Ayala Land, Inc.B		33,797			33,078
BDO Unibank, Inc.B		12,530			36,127
International Container Terminal Services, Inc.B		13,670			36,325
LT Group, Inc.B		114,000			31,594
Megaworld Corp.B		278,800			33,532
Total Common Stocks					206,577
Total Philippines (Cost $204,521)					206,577
Republic of Korea - 9.14%
Common Stocks - 9.14%
AfreecaTV Co., Ltd.B		676			33,034
Cheil Worldwide, Inc.B		1,511			34,511
Hana Financial Group, Inc.B		1,123			32,940
Hansol Chemical Co., Ltd.B		495			33,902
Industrial Bank of KoreaB		3,057			33,930
Innocean Worldwide, Inc.B		607			34,188
KT&G Corp.B		437			35,529
Macquarie Korea Infrastructure FundB		3,619			35,669
NICE Information Service Co., Ltd.B		2,892			38,101
Samsung Electronics Co., Ltd.B		1,958			67,172
Shinhan Financial Group Co., Ltd.B		946			34,672
SK Holdings Co., Ltd.B		184			34,038
Woongjin Coway Co., Ltd.B		507			35,920
Total Common Stocks					483,606
Total Republic of Korea (Cost $496,823)					483,606
Russia - 4.18%
Common Stocks - 4.18%
Gazprom PJSC, Sponsored ADRB		5,023			36,821
LUKOIL PJSC, Sponsored ADR		426			34,698
Novatek PJSC, Sponsored GDRB		192			40,104
Sberbank of Russia PJSC, Sponsored ADRB		2,470			36,797
Tatneft PJSC, Sponsored ADRB		490			34,024
TCS Group Holding PLC, GDRB		1,956			38,878
Total Common Stocks					221,322
Total Russia (Cost $203,383)					221,322
Singapore - 1.38%
Common Stocks - 1.38%
CapitaLand Ltd.B		12,800			33,596
Keppel DC REITB		31,600			39,254
Total Common Stocks					72,850
Total Singapore (Cost $69,583)					72,850

See accompanying notes

8

American Beacon Continuous Capital Emerging Markets Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Shares		Fair Value
South Africa - 5.32%
Common Stocks - 5.32%
Capitec Bank Holdings Ltd.B		403		$	33,166
Clicks Group Ltd.B		2,516			35,759
Distell Group Holdings Ltd.B		3,703			34,115
FirstRand Ltd.B		8,202			35,211
MultiChoice Group Ltd.A B		4,082			38,199
Naspers Ltd., Class N, Sponsored ADRD		734			36,032
Naspers Ltd., Class NB		145			35,277
Standard Bank Group Ltd., Sponsored ADR		2,717			33,691
Total Common Stocks					281,450
Total South Africa (Cost $266,629)					281,450
Taiwan - 10.91%
Common Stocks - 10.91%
Advantech Co., Ltd.B		4,340			36,562
Chailease Holding Co., Ltd.B		8,852			37,328
Chipbond Technology Corp.B		17,623			35,337
E.Sun Financial Holding Co., Ltd.B		44,768			37,343
Getac Technology Corp.B		22,528			32,884
Lotes Co., Ltd.B		4,791			35,022
Parade Technologies Ltd.B		2,131			35,258
Realtek Semiconductor Corp.B		4,873			32,395
Simplo Technology Co., Ltd.B		4,470			34,626
Sinbon Electronics Co., Ltd.B		10,690			45,209
Taiwan Semiconductor Manufacturing Co., Ltd.B		4,500			37,204
Taiwan Union Technology Corp.B		9,000			36,951
Topco Scientific Co., Ltd.B		13,215			35,109
Tripod Technology Corp.B		10,625			35,380
Uni-President Enterprises Corp.B		14,306			37,195
Yuanta Financial Holding Co., Ltd.B		60,240			33,838
Total Common Stocks					577,641
Total Taiwan (Cost $509,319)					577,641
Thailand - 3.77%
Common Stocks - 3.77%
AEON Thana Sinsap Thailand PCL, NVDRB		4,959			38,003
Com7 PCL, NVDRB		48,992			40,137
Krungthai Card PCL, NVDRB		27,450			42,558
Thanachart Capital PCL, NVDRB		20,400			38,950
Tisco Financial Group PCL, NVDRB		12,116			39,769
Total Common Stocks					199,417
Total Thailand (Cost $144,178)					199,417
Turkey - 0.72% (Cost $38,163)
Common Stocks - 0.72%
Ulker Biskuvi Sanayi A/SA B		11,559			38,382
United Arab Emirates - 1.41%
Common Stocks - 1.41%
Emirates NBD PJSCB		11,457			36,982
Aramex PJSCB		31,618			37,884
Total Common Stocks					74,866
Total United Arab Emirates (Cost $75,164)					74,866

See accompanying notes

9

American Beacon Continuous Capital Emerging Markets Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Shares		Fair Value
United Kingdom - 1.29%
Common Stocks - 1.29%
Mondi PLCB		1,514		$	32,767
WNS Holdings Ltd., ADRA		568			35,795
Total Common Stocks					68,562
Total United Kingdom (Cost $69,330)					68,562
SHORT-TERM INVESTMENTS - 5.64% (Cost $298,444)
Investment Companies - 5.64%
American Beacon U.S. Government Money Market Select Fund, Select Class, 2.28%E F		298,444			298,444
SECURITIES LENDING COLLATERAL - 1.36% (Cost $71,884)
Investment Companies - 1.36%
American Beacon U.S. Government Money Market Select Fund, Select Class, 2.28%E F		71,884			71,884
TOTAL INVESTMENTS - 102.97% (Cost $5,221,284)					5,449,580
LIABILITIES, NET OF OTHER ASSETS - (2.97%)					(157,106	)
TOTAL NET ASSETS - 100.00%				$	5,292,474
Percentages are stated as a percent of net assets.

^A Non-income producing security.

^B Fair valued pursuant to procedures approved by the Board of Trustees. At period end, the value of these securities amounted to $4,210,025 or 79.55% of net assets.

^C Security exempt from registration under the Securities Act of 1933. These securities may be resold to qualified institutional buyers pursuant to Rule 144A. At the period end, the value of these securities amounted to $71,602 or 1.35% of net assets. The Fund has no right to demand registration of these securities.

^D All or a portion of this security is on loan at July 31, 2019.

^E The Fund is affiliated by having the same investment advisor.

^F 7-day yield.

ADR - American Depositary Receipt.

GDR - Global Depositary Receipt.

NVDR - Non Voting Depositary Receipt.

PCL - Public Company Limited (Thailand).

PJSC - Private Joint Stock Company.

PLC - Public Limited Company.

REIT - Real Estate Investment Trust.

See accompanying notes

10

American Beacon Continuous Capital Emerging Markets Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of July 31, 2019, the investments were classified as described below:

Continuous Capital Emerging Markets Fund	Level 1		Level 2		Level 3		Total
Assets
Foreign Common Stocks
Brazil	$	378,276	$	-	$	-	$	378,276
Chile		33,659		-		-		33,659
China		139,058		1,248,120		-		1,387,178
Hong Kong		36,371		71,923		-		108,294
India		-		424,409		-		424,409
Indonesia		-		248,434		-		248,434
Malaysia		-		132,682		-		132,682
Mexico		141,647		-		-		141,647
Philippines		-		206,577		-		206,577
Republic of Korea		-		483,606		-		483,606
Russia		34,698		186,624		-		221,322
Singapore		-		72,850		-		72,850
South Africa		69,723		211,727		-		281,450
Taiwan		-		577,641		-		577,641
Thailand		-		199,417		-		199,417
Turkey		-		38,382		-		38,382
United Arab Emirates		-		74,866		-		74,866
United Kingdom		35,795		32,767		-		68,562
Short-Term Investments		298,444		-		-		298,444
Securities Lending Collateral		71,884		-		-		71,884
Total Investments in Securities - Assets	$	1,239,555	$	4,210,025	$	-	$	5,449,580

U.S. GAAP requires transfers between all levels to/from level 3 be disclosed. During the period ended July 31, 2019, there were no transfers into or out of Level 3.

See accompanying notes

11

American Beacon Continuous Capital Emerging Markets Fund^SM

Statement of Assets and Liabilities

July 31, 2019 (Unaudited)

Assets:
Investments in unaffiliated securities, at fair value†§	$	5,079,252
Investments in affiliated securities, at fair value‡		370,328
Foreign currency, at fair value^		2,151
Dividends and interest receivable		23,119
Receivable for investments sold		64,478
Receivable for tax reclaims		63
Receivable for expense reimbursement (Note 2)		8,163
Deferred offering costs		20,304
Prepaid expenses		37,704
Total assets		5,605,562
Liabilities:
Payable for investments purchased		2,888
Management and sub-advisory fees payable (Note 2)		3,872
Service fees payable (Note 2)		27
Transfer agent fees payable (Note 2)		3,286
Payable upon return of securities loaned (Note 8)§		71,884
Custody and fund accounting fees payable		188,326
Professional fees payable		41,857
Trustee fees payable (Note 2)		705
Other liabilities		243
Total liabilities		313,088
Net assets	$	5,292,474
Analysis of net assets:
Paid-in-capital	$	4,940,464
Total distributable earnings (deficits)A		352,010
Net assets	$	5,292,474
Shares outstanding at no par value (unlimited shares authorized):
Institutional Class		260,140
Y Class		201,796
Investor Class		11,458
Net assets:
Institutional Class	$	2,908,170
Y Class	$	2,256,523
Investor Class	$	127,781
Net asset value, offering and redemption price per share:
Institutional Class	$	11.18
Y Class	$	11.18
Investor Class	$	11.15
† Cost of investments in unaffiliated securities	$	4,850,956
‡ Cost of investments in affiliated securities	$	370,328
§ Fair value of securities on loan	$	68,740
^ Cost of foreign currency	$	2,152
A The Fund’s investments in affiliated securities did not have unrealized appreciation (depreciation) at period end.

See accompanying notes

12

American Beacon Continuous Capital Emerging Markets Fund^SM

Statement of Operations

For the period ended July 31, 2019 (Unaudited)

	Continuous Capital Emerging Markets Fund
Investment income:
Dividend income from unaffiliated securities (net of foreign taxes)†	$	100,365
Dividend income from affiliated securities (Note 7)		1,972
Income derived from securities lending (Note 8)		612
Total investment income		102,949
Expenses:
Management and sub-advisory fees (Note 2)		20,088
Transfer agent fees:
Institutional Class (Note 2)		3,149
Y Class (Note 2)		1,739
Investor Class		2,197
Custody and fund accounting fees		162,183
Professional fees		14,438
Registration fees and expenses		48,818
Service fees (Note 2):
Investor Class		141
Prospectus and shareholder report expenses		3,320
Trustee fees (Note 2)		689
Other expenses		369
Total expenses		257,131
Net fees waived and expenses (reimbursed) (Note 2)		(229,730	)
Net expenses		27,401
Net investment income		75,548
Realized and unrealized gain (loss) from investments:
Net realized gain (loss) from:‡
Investments in unaffiliated securitiesA		42,849
Foreign currency transactions		(4,341	)
Change in net unrealized (depreciation) of:
Investments in unaffiliated securitiesB		(6,109	)
Foreign currency transactions		(21	)
Net gain from investments		32,378
Net increase in net assets resulting from operations	$	107,926
† Foreign taxes	$	13,004
A The Fund did not recognize net realized gains (losses) from the sale of investments in affiliated securities.
B The Fund’s investments in affiliated securities did not have a change in unrealized appreciation (depreciation) at period end.

See accompanying notes

13

American Beacon Continuous Capital Emerging Markets Fund^SM

Statement of Changes in Net Assets

	Six Months Ended July 31, 2019			From December 17, 2018A to January 31,  2019
	(unaudited)
Increase (decrease) in net assets:
Operations:
Net investment income	$	75,548		$	3,546
Net realized gain from investments in unaffiliated securities, and foreign currency transactions		38,508			6,102
Change in net unrealized appreciation (depreciation) of investments in unaffiliated securities, and foreign currency transactions		(6,130	)		234,436
Net increase in net assets resulting from operations		107,926			244,084
Capital share transactions (Note 9):
Proceeds from sales of shares		1,932,002			208,462
Net increase in net assets from capital share transactions		1,932,002			208,462
Net increase in net assets		2,039,928			452,546
Net assets:
Beginning of period		3,252,546			2,800,000	B
End of period	$	5,292,474		$	3,252,546
A Commencement of operations.
B Seed capital.

See accompanying notes

14

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

1.  Organization and Significant Accounting Policies

American Beacon Funds (the “Trust”) is organized as a Massachusetts business trust. The Fund, a series within the Trust, is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified, open-end management investment company. As of July 31, 2019, the Trust consists of thirty-three active series, one of which is presented in this filing: American Beacon Continuous Capital Emerging Markets Fund (the “Fund”). The remaining thirty-two active series are reported in separate filings.

American Beacon Advisors, Inc. (the “Manager”) is a Delaware corporation and a wholly-owned subsidiary of Resolute Investment Managers, Inc. (“RIM”) organized in 1986 to provide business management, advisory, administrative, and asset management consulting services to the Trust and other investors. The Manager is registered as an investment advisor under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). RIM is, in turn, a wholly-owned subsidiary of Resolute Acquisition, Inc., which is a wholly-owned subsidiary of Resolute Topco, Inc., a wholly-owned subsidiary of Resolute Investment Holdings, LLC (“RIH”). RIH is owned primarily by Kelso Investment Associates VIII, L.P., KEP VI, LLC and Estancia Capital Partners L.P., investment funds affiliated with Kelso & Company, L.P. (“Kelso”) or Estancia Capital Management, LLC (“Estancia”), which are private equity firms.

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-08, Premium Amortization of Purchased Callable Debt Securities. The amendments in the ASU shorten the premium amortization period on a purchased callable debt security from the security’s contractual life to the earliest call date. It is anticipated that this change will enhance disclosures by reducing losses recognized when a security is called on an earlier date. This ASU is effective for fiscal years beginning after December 15, 2018. The Manager continues to evaluate the impact this ASU will have on the financial statements and other disclosures.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (“Topic 820”). The amendments in the ASU impact disclosure requirements for fair value measurement. It is anticipated that this change will enhance the effectiveness of disclosures in the notes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted and can include the entire standard or certain provisions that exclude or amend disclosures. For the period ended July 31, 2019, the Fund has chosen to adopt the standard. The adoption of this ASU guidance did not have a material impact on the financial statements and other disclosures.

Class Disclosure

The Fund has multiple classes of shares designed to meet the needs of different groups of investors. The following table sets forth the differences amongst the classes:

Class	Eligible Investors	Minimum Initial Investments
Institutional	Large institutional investors - sold directly or through intermediary channels.	$	250,000
Y Class	Large institutional retirement plan investors - sold directly or through intermediary channels.	$	100,000
Investor	All investors using intermediary organizations, such as broker-dealers or retirement plan sponsors.	$	2,500

Each class offered by the Trust has equal rights as to assets and voting privileges. Income and non-class specific expenses are allocated daily to each class based on the relative net assets. Realized and unrealized capital gains and losses of each class are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include service, distribution, transfer agent fees, and sub-transfer agent fees that vary amongst the classes as described more fully in Note 2.

15

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Significant Accounting Policies

The following is a summary of significant accounting policies, consistently followed by the Fund in preparation of the financial statements. The Fund is considered an investment company and accordingly, follows the investment company accounting and reporting guidance of the FASB Accounting Standards Codification Topic 946, Financial Services – Investment Companies, a part of Generally Accepted Accounting Principles (“U.S. GAAP”).

Security Transactions and Investment Income

Security transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date.

Dividend income, net of foreign taxes, is recorded on the ex-dividend date, except certain dividends from foreign securities which are recorded as soon as the information is available to the Fund. Interest income, net of foreign taxes, is earned from settlement date, recorded on the accrual basis, and adjusted, if necessary, for accretion of discounts and amortization of premiums. Realized gains (losses) from securities sold are determined based on specific lot identification.

Distributions to Shareholders

The Fund distributes most or all of its net earnings and realized gains, if any, each taxable year in the form of dividends from net investment income and distributions of realized net capital gains and net gains from foreign currency transactions on an annual basis. The Fund does not have a fixed dividend rate or does not guarantee that it will pay any distributions in any particular period.

Dividends to shareholders are determined in accordance with federal income tax regulations, which may differ in amount and character from net investment income and realized gains recognized for purposes of U.S. GAAP. To the extent necessary to fully distribute capital gains, the Fund may designate earnings and profits distributed to shareholders on the redemption of shares.

Currency Translation

All assets and liabilities initially expressed in foreign currency values are converted into U.S. dollar values at the mean of the bid and ask prices of such currencies against U.S. dollars as last quoted by a recognized dealer. Income, expenses, and purchases and sales of investments are translated into U.S. dollars at the rate of the exchange prevailing on the respective dates of such transactions. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and is reported with all other foreign currency gains and losses on the Fund’s Statement of Operations.

Allocation of Income, Trust Expenses, Gains, and Losses

Investment income, realized and unrealized gains and losses from investments of the Fund is allocated daily to each class of shares based upon the relative proportion of net assets of each class to the total net assets of the Fund. Expenses directly charged or attributable to the Fund will be paid from the assets of the Fund. Generally, expenses of the Trust will be allocated among and charged to the assets of the Fund on a basis that the Trust’s Board of Trustees (the “Board”) deems fair and equitable, which may be based on the relative net assets of the Fund or nature of the services performed and relative applicability to the Fund.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimated.

16

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Other

Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In the normal course of business, the Trust enters into contracts that provide indemnification to the other party or parties against potential costs or liabilities. The Trust’s maximum exposure under these arrangements is dependent on claims that may be made in the future and, therefore, cannot be estimated. The Trust has had no prior claims or losses pursuant to any such agreement.

2.  Transactions with Affiliates

Management and Investment Sub-Advisory Agreements

The Fund and the Manager are parties to a Management Agreement that obligates the Manager to provide the Fund with investment advisory and administrative services. As compensation for performing the duties under the Management Agreement, the Manager will receive an annualized management fee based on a percentage of the Fund’s average daily net assets that is calculated and accrued daily according to the following schedule:

First $5 billion	0.35	%
Next $5 billion	0.325	%
Next $10 billion	0.30	%
Over $20 billion	0.275	%

The Trust, on behalf of the Fund, and the Manager have entered into an Investment Advisory Agreement with Continuous Capital, LLC (the “Sub-Advisor”) pursuant to which the Fund has agreed to pay an annualized sub-advisory fee that is calculated and accrued daily based on the Fund’s average daily net assets according to the following schedule:

First $500 million	0.525	%
Next $500 million	0.50	%
Over $1 billion	0.475	%

The Management and Sub-Advisory Fees paid by the Fund for the period ended July 31, 2019 were as follows:

	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.350	%	$	8,076
Sub-Advisor Fees		0.525	%		12,012
Total		0.875	%	$	20,088

As compensation for services provided by the Manager in connection with securities lending activities conducted by the Fund, the lending Fund pays to the Manager, with respect to cash collateral posted by borrowers, a fee up to 10% of the net monthly interest income (the gross interest income earned by the investment of cash collateral, less the amount paid to borrowers and related expenses) from such activities and, with respect to loan fees paid by borrowers, a fee up to 10% of such loan fees. These fees are included in “Income derived from securities lending” and “Management and investment advisory fees” on the Statement of Operations. During the period ended July 31, 2019, the Manager received securities lending fees of $79 for the securities lending activities of the Fund.

Distribution Plans

The Fund has adopted a “defensive” Distribution Plan (the “Plan”) in accordance with Rule 12b-1 under the Act, pursuant to which no separate fees may be charged to the Fund for distribution purposes. However, the Plan authorizes the management fee received by the Manager and the investment advisors hired by the Manager to be used for distribution purposes. Under this Plan, the Fund does not intend to compensate the Manager or any other party, either directly or indirectly, for the distribution of Fund shares.

17

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Service Plans

The Manager and the Trust entered into a Service Plan that obligates the Manager to oversee additional shareholder servicing of the Investor Class of the Fund. As compensation for performing the duties required under the Service Plan, the Manager receives an annualized fee up to 0.375% of the average daily net assets of the Investor Class of the Fund.

Sub-Transfer Agent Fees

The Manager has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Institutional and Y Classes of the Fund and has agreed to compensate the intermediaries for providing these services. Intermediaries transact with the Fund primarily through the use of omnibus accounts on behalf of its customers who hold positions in the Fund. Certain services would have been provided by the Fund’s transfer agent and other service providers if the shareholders’ accounts were maintained directly by the Fund’s transfer agent. Accordingly, the Fund, pursuant to Board approval, has agreed to reimburse the Manager for certain non-distribution shareholder services provided by financial intermediaries for the Institutional and Y Classes. The reimbursement amounts (sub-transfer agent fees) paid to the Manager are subject to a fee limit of up to 0.10% of an intermediary’s average net assets in the Institutional and Y Classes on an annual basis. During the period ended July 31, 2019, the Fund did not have any sub-transfer agent fees.

Investments in Affiliated Funds

The Fund may invest in the American Beacon U.S. Government Money Market Select Fund (the “USG Select Fund”). Cash collateral received by the Fund in connection with securities lending may also be invested in the USG Select Fund. The Fund and the USG Select Fund have the same investment advisor and therefore, are considered to be affiliated. The Manager serves as investment advisor to the USG Select Fund and receives management fees and administrative fees totaling 0.10% of the average daily net assets of the USG Select Fund. During the period ended July 31, 2019, the Manager earned fees on the Fund’s direct investments and indirect securities lending collateral investments in the USG Select Fund as shown below:

Fund	Direct Investments in USG Select Fund		Securities Lending Collateral Investments in USG Select Fund		Total
Continuous Capital Emerging Markets	$	85	$	20	$	105

Interfund Credit Facility

Pursuant to an exemptive order issued by the SEC, the Fund, along with other registered investment companies having management contracts with the Manager, may participate in a credit facility whereby each fund, under certain conditions, is permitted to lend money directly to and borrow directly from other participating funds for temporary purposes. The interfund credit facility is advantageous to the funds because it provides added liquidity and eliminates the need to maintain higher cash balances to meet redemptions. This situation could arise when shareholder redemptions exceed anticipated volumes and certain funds have insufficient cash on hand to satisfy such redemptions or when sales of securities do not settle as expected, resulting in a cash shortfall for a fund. When a fund liquidates portfolio securities to meet redemption requests, they often do not receive payment in settlement for up to two days (or longer for certain foreign transactions). Redemption requests normally are satisfied on the next business day. The credit facility provides a source of immediate, short-term liquidity pending settlement of the sale of portfolio securities. The credit facility is administered by a credit facility team consisting of professionals from the Manager’s asset management, compliance, and accounting areas who report the activities of the credit facility to the Board. During the period ended July 31, 2019, the Fund did not utilize the credit facility.

18

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Expense Reimbursement Plan

The Manager contractually agreed to reduce fees and/or reimburse expenses for the classes of the Fund to the extent that total operating expenses exceed the Fund’s expense cap. During the period ended July 31, 2019, the Manager waived and/or reimbursed expenses as follows:

		Expense Cap					Expenses Ineligible for Recoupment				Expiration of Reimbursed Expenses
Fund	Class	2/1/2019 - 7/31/2019			Reimbursed Expenses				(Recouped) Expenses
Continuous Capital Emerging Markets	Institutional		1.15	%	$	143,628	$	-	$	-		2022
Continuous Capital Emerging Markets	Y		1.25	%		78,204		-		-		2022
Continuous Capital Emerging Markets	Investor		1.53	%		7,898		-		-		2022

Of these amounts, $8,163 was disclosed as a receivable from the Manager on the Statement of Assets and Liabilities at July 31, 2019.

The Fund has adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of such fee reductions and expense reimbursements. Under the policy, the Manager can be reimbursed by the Fund for any contractual or voluntary fee reductions 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 Fund’s annual operating expenses to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or time of recoupment. The reimbursed expenses listed above will expire in 2022. The Fund did not record a liability for potential reimbursement due to the current assessment that a reimbursement is uncertain. The carryover of excess expenses potentially reimbursable to the Manager are as follows:

Fund	Recouped Expenses		Excess Expense Carryover		Expired Expense Carryover		Expiration of Reimbursed Expenses
Continuous Capital Emerging Markets	$	-	$	134,337	$	-		2021-2022

Concentration of Ownership

From time to time, the Fund may have a concentration of one or more accounts constituting a significant percentage of shares outstanding. Investment activities by holders of accounts that represent a significant ownership of more than 5% of the Fund’s outstanding shares could have a material impact on the Fund. As of July 31, 2019, based on management’s evaluation of the shareholder account base, one account in the Fund has been identified as representing an affiliated significant ownership of approximately 55% of the Fund’s outstanding Institutional Class shares.

Trustee Fees and Expenses

As compensation for their service to the Trusts, each Trustee receives an annual retainer of $120,000, plus $10,000 for each Board meeting attended in person or via teleconference, $2,500 for attendance by Committee members at meetings of the Audit Committee and the Investment Committee, and $1,500 for attendance by Committee members at meetings of the Nominating and Governance Committee, plus reimbursement of reasonable expenses incurred in attending Board meetings, Committee meetings, and relevant educational seminars. The Trustees also may be compensated for attendance at special Board and/or Committee meetings from time to time. The Board Chair receives an additional annual retainer of $50,000 as well as a $2,500 fee each quarter for attendance at the committee meetings. The Chairpersons of the Audit Committee and the Investment Committee each receive an additional annual retainer of $25,000 and the Chairman of the Nominating and Governance Committee receives an additional annual retainer of $10,000. These expenses are allocated on a prorated basis to each fund of the Trusts according to its respective net assets.

19

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

3.  Security Valuation and Fair Value Measurements

The price of the Fund’s shares is based on its net asset value (“NAV”) per share. The Fund’s NAV is computed by adding total assets, subtracting all the Fund’s liabilities, and dividing the result by the total number of shares outstanding.

The NAV of each class of the Fund’s shares is determined based on a pro rata allocation of the Fund’s investment income, expenses and total capital gains and losses. The Fund’s NAV per share is determined each business day as of the regular close of trading on the New York Stock Exchange (“NYSE” or “Exchange”), which is typically 4:00 p.m. Eastern Time (“ET”). However, if trading on the NYSE closes at a time other than 4:00 p.m. ET, the Fund’s NAV per share typically would still be determined as of the regular close of trading on the NYSE. The Fund does not price its shares on days that the NYSE is closed. Foreign exchanges may permit trading in foreign securities on days when the Fund is not open for business, which may result in the value of the Fund’s portfolio investments being affected at a time when you are unable to buy or sell shares.

Equity securities, including shares of closed-end funds and exchange-traded funds (“ETFs”), are valued at the last sale price or official closing price taken from the primary exchange in which each security trades. Investments in other mutual funds are valued at the closing NAV per share on the day of valuation. Debt securities are valued at bid quotes from broker/dealers or evaluated bid prices from pricing services, who may consider a number of inputs and factors, such as prices of comparable securities, yield curves, spreads, credit ratings, coupon rates, maturity, default rates, and underlying collateral. Futures are valued based on their daily settlement prices. Exchange-traded and over-the-counter (“OTC”) options are valued at the last sale price. Options with no last sale for the day are priced at mid quote. Swaps are valued at evaluated mid prices from pricing services.

The valuation of securities traded on foreign markets and certain fixed income securities will generally be based on prices determined as of the earlier closing time of the markets on which they primarily trade unless a significant event has occurred. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. ET.

Securities may be valued at fair value, as determined in good faith and pursuant to procedures approved by the Board, under certain limited circumstances. For example, fair value pricing will be used when market quotations are not readily available or reliable, as determined by the Manager, such as when (i) trading for a security is restricted or stopped; (ii) a security’s trading market is closed (other than customary closings); or (iii) a security has been de-listed from a national exchange. A security with limited market liquidity may require fair value pricing if the Manager determines that the available price does not reflect the security’s true market value. In addition, if a significant event that the Manager determines to affect the value of one or more securities held by the Fund occurs after the close of a related exchange but before the determination of the Fund’s NAV, fair value pricing may be used on the affected security or securities. Securities of small-capitalization companies are also more likely to require a fair value determination using these procedures because they are more thinly traded and less liquid than the securities of larger-capitalization companies. The Fund may fair value securities as a result of significant events occurring after the close of the foreign markets in which the Fund invests as described below. In addition, the Fund may invest in illiquid securities requiring these procedures.

The Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund’s pricing time of 4:00 p.m. ET. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. If the Manager determines that the last quoted prices of non-U.S. securities will, in its judgment, materially affect the value of some or all its portfolio securities, the Manager can adjust the previous closing prices to reflect what it believes to be the fair value of the securities as of the close of the Exchange. In deciding whether it is necessary to adjust closing prices to reflect fair value, the Manager reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities

20

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

and baskets of foreign securities. These securities are fair valued using a pricing service, using methods approved by the Board, that considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant American Depositary Receipts (“ADRs”) and futures contracts. The Valuation Committee, established by the Board, may also fair value securities in other situations, such as when a particular foreign market is closed but the Fund is open. The Fund uses outside pricing services to provide closing prices and information to evaluate and/or adjust those prices. As a means of evaluating its security valuation process, the Valuation Committee routinely compares closing prices, the next day’s opening prices in the same markets and adjusted prices.

Attempts to determine the fair value of securities introduce an element of subjectivity to the pricing of securities. As a result, the price of a security determined through fair valuation techniques may differ from the price quoted or published by other sources and may not accurately reflect the market value of the security when trading resumes. If a reliable market quotation becomes available for a security formerly valued through fair valuation techniques, the Manager compares the new market quotation to the fair value price to evaluate the effectiveness of the Fund’s fair valuation procedures. If any significant discrepancies are found, the Manager may adjust the Fund’s fair valuation procedures.

Valuation Inputs

Various inputs may be used to determine the fair value of the Fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

Level 1	-	Quoted prices in active markets for identical securities.
Level 2	-	Prices determined using other significant observable inputs. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Level 3	-	Prices determined using other significant unobservable inputs. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in pricing an investment.

Level 1 and Level 2 trading assets and trading liabilities, at fair value

Common stocks, ETFs, and financial derivative instruments, such as futures contracts or options that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are generally categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment management companies will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy.

4.  Securities and Other Investments

American Depositary Receipts, Global Depositary Receipts, and Non-Voting Depositary Receipts

ADRs are depositary receipts for foreign issuers in registered form traded in U.S. securities markets. Global Depositary Receipts (“GDRs”) are in bearer form and traded in both the U.S. and European securities markets. Non-Voting Depositary Receipts (“NVDRs”) represent financial interests in an issuer but the holder is not entitled to any voting rights. Depositary receipts may not be denominated in the same currency as the securities into which they may be converted. Investing in depositary receipts entails substantially the same risks as direct investment in foreign securities. There is generally less publicly available information about foreign companies and there may be less governmental regulation and supervision of foreign stock exchanges, brokers and listed companies. In addition, such companies may use different accounting and financial standards (and certain currencies may become

21

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

unavailable for transfer from a foreign currency), resulting in the Fund’s possible inability to convert immediately into U.S. currency proceeds realized upon the sale of portfolio securities of the affected foreign companies. In addition, the Fund may invest in unsponsored depositary receipts, the issuers of which are not obligated to disclose material information about the underlying securities to investors in the United States. Ownership of unsponsored depositary receipts may not entitle the Fund to the same benefits and rights as ownership of a sponsored depositary receipt or the underlying security.

Common Stock

Common stock generally takes the form of shares in a corporation which represent an ownership interest. It ranks below preferred stock and debt securities in claims for dividends and for assets of the company in a liquidation or bankruptcy. The value of a company’s common stock may fall as a result of factors directly relating to that company, such as decisions made by its management or decreased demand for the company’s products or services. A stock’s value may also decline because of factors affecting not just the company, but also companies in the same industry or sector. The price of a company’s stock may also be affected by changes in financial markets that are relatively unrelated to the company, such as changes in interest rates, currency exchange rates or industry regulation. Companies that elect to pay dividends on their common stock generally only do so after they invest in their own business and make required payments to bondholders and on other debt and preferred stock. Therefore, the value of a company’s common stock will usually be more volatile than its bonds, other debt and preferred stock. Common stock may be exchange-traded or OTC. OTC stock may be less liquid than exchange-traded stock.

Foreign Securities

The Fund may invest in U.S. dollar-denominated and non-U.S. dollar denominated equity and debt securities of foreign issuers and foreign branches of U.S. banks, including negotiable certificates of deposit (“CDs”), bankers’ acceptances, and commercial paper. Foreign issuers are issuers organized and doing business principally outside the United States and include corporations, banks, non-U.S. governments, and quasi-governmental organizations. While investments in foreign securities may be intended to reduce risk by providing further diversification, such investments involve sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political or social instability, nationalization, expropriation, or confiscatory taxation); the potentially adverse effects of unavailability of public information regarding issuers, different governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States; different laws and customs governing securities tracking; and possibly limited access to the courts to enforce the Fund’s rights as an investor.

Illiquid and Restricted Securities

Generally, an illiquid asset is an asset that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, as determined pursuant to Rule 22e-4 under the Investment Company Act or as otherwise permitted or required by SEC rules and interpretations. Historically, illiquid securities have included securities that have not been registered under the Securities Act, securities that are otherwise not readily marketable, and repurchase agreements having a remaining maturity of longer than seven calendar days. Securities that have not been registered under the Securities Act are referred to as private placements or restricted securities and are purchased directly from the issuer or in the secondary market. These securities may be sold only in a privately negotiated transaction or pursuant to an exemption from registration. A large institutional market exists for certain securities that are not registered under the Securities Act, including repurchase agreements, commercial paper, foreign securities, municipal securities and corporate bonds and notes. Institutional investors depend on an efficient institutional market in which the unregistered security can be readily resold or on an issuer’s ability to honor a demand for repayment. However, the fact that there are contractual or legal restrictions on resale of such investments to the general public or to certain institutions may not be indicative of their liquidity.

22

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Limitations on resale may have an adverse effect on the marketability of portfolio securities, and the Fund might be unable to dispose of restricted or other illiquid securities promptly or at reasonable prices and might thereby experience difficulty satisfying redemptions within seven calendar days. In addition, the Fund may get only limited information about an issuer, so it may be less able to predict a loss. The Fund also might have to register such restricted securities in order to dispose of them resulting in additional expense and delay. Adverse market conditions could impede such a public offering of securities. In recognition of the increased size and liquidity of the institutional market for unregistered securities and the importance of institutional investors in the formation of capital, the SEC adopted Rule 144A under the Securities Act. Rule 144A is designed to facilitate efficient trading among institutional investors by permitting the sale of certain unregistered securities to qualified institutional buyers. To the extent privately placed securities held by the Fund qualify under Rule 144A and an institutional market develops for those securities, the Fund likely will be able to dispose of the securities without registering them under the Securities Act. To the extent that institutional buyers become, for a time, uninterested in purchasing these securities, investing in Rule 144A securities could increase the level of the Fund’s illiquidity. The Manager or the sub-advisor, as applicable, may determine that certain securities qualified for trading under Rule 144A are liquid. Regulation S under the Securities Act permits the sale abroad of securities that are not registered for sale in the United States and includes a provision for U.S. investors, such as the Fund, to purchase such unregistered securities if certain conditions are met.

Securities sold in private placement offerings made in reliance on the “private placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act and resold to qualified institutional buyers under Rule 144A under the Securities Act (“Section 4(a)(2) securities”) are restricted as to disposition under the federal securities laws, and generally are sold to institutional investors, such as the Fund, that agree they are purchasing the securities for investment and not with an intention to distribute to the public. Any resale by the purchaser must be pursuant to an exempt transaction and may be accomplished in accordance with Rule 144A. Section 4(a)(2) securities normally are resold to other institutional investors through or with the assistance of the issuer or dealers that make a market in the Section 4(a)(2) securities, thus providing liquidity. Restricted securities outstanding during the period ended July 31, 2019 are disclosed in the Notes to the Schedule of Investments.

Regulation S under the Securities Act permits the sale abroad of securities that are not registered for sale in the United States and includes a provision for U.S. investors, such as the Fund, to purchase such unregistered securities if certain conditions are met.

Other Investment Company Securities and Other Exchange-Traded Products

The Fund may invest in shares of other investment companies, including exchange-traded funds and money market funds. The Fund may invest in securities of an investment company advised by the Manager or a sub-advisor. Investments in the securities of other investment companies may involve duplication of advisory fees and certain other expenses. By investing in another investment company, the Fund becomes a shareholder of that investment company. As a result, the Fund’s shareholders indirectly will bear the Fund’s proportionate share of the fees and expenses paid by shareholders of the other investment company, in addition to the fees and expenses the Fund’s shareholders directly bear in connection with the Fund’s own operations. These other fees and expenses are reflected as Acquired Fund Fees and Expenses and are included in the Fees and Expenses Table for the Fund in its Prospectus, if applicable. Investments in other investment companies may involve the payment of substantial premiums above the value of such issuer’s portfolio securities.

5.  Principal Risks

Investing in the Fund may involve certain risks including, but not limited to, those described below.

China Investment Risk

Investing in securities of Chinese issuers, including A-Shares, involves certain risks and considerations not typically associated with investing in securities of U.S. issuers, including, among others, more frequent trading

23

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

suspensions and government interventions (including by nationalization of assets), currency exchange rate fluctuations or blockages, limits on the use of brokers and on foreign ownership, different financial reporting standards, higher dependence on exports and international trade, potential for increased trade tariffs, embargoes and other trade limitations, and custody risks associated with programs used to access Chinese securities. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities, and have shown a willingness to exercise that option in response to market volatility and other events.

Currency Risk

The Fund may have exposure to foreign currencies investing in securities denominated in non-U.S. currencies or in securities denominated in non-U.S. currencies, purchasing or selling forward currency exchange contracts in non-U.S. currencies, non-U.S. currency futures contracts, options on non-U.S. currencies and non-U.S. currency futures and swaps for cross-currency investments. Foreign currencies may decline in value relative to the U.S. dollar, or, in the case of hedging positions, the U.S. dollar may decline in value relative to the currency being hedged, and thereby affect the Fund’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies. Currency exchange rates may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns of the Fund. Currency futures, forwards, options or swaps may not always work as intended, and in specific cases, the Fund may be worse off than if it had not used such instrument(s). There may not always be suitable hedging instruments available. Even where suitable hedging instruments are available, the Fund may choose to not hedge its currency risks.

Equity Investments Risk

Equity securities are subject to market risk. The Fund’s investments in equity securities may include common stocks, REITs, depositary receipts, and U.S. dollar-denominated foreign stocks traded on U.S. exchanges. Such investments may expose the Fund to additional risk. The value of a company’s common stock may fall as a result of factors affecting the company, companies in the same industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company. Investments in REITs are subject to the risks associated with investing in the real estate industry such as adverse developments affecting the real estate industry and real property values. Depositary receipts and U.S. dollar-denominated foreign stocks traded on U.S. exchanges are subject to certain of the risks associated with investing directly in foreign securities, including, but not limited to, currency fluctuations and political and financial instability in the home country of a particular depositary receipt or foreign stock.

Foreign Investing and Emerging Markets 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, (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. To the extent the Fund invests a significant portion of its assets in securities of a single country or region, it is more likely to be affected by events or conditions of that country or region. In addition, the economies and political environments of emerging market countries tend to be more unstable than those of developed countries, resulting in more volatile rates of return than the developed markets and substantially greater risk to investors. There may be very limited oversight of certain foreign banks or securities depositories that hold foreign securities and currency and the laws of certain countries may limit the ability to recover such assets if a foreign bank or depository or their agents goes bankrupt. When investing in

24

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

emerging markets, the risks of investing in foreign securities are heightened. Emerging markets have unique risks that are greater than, or in addition to, investing in developed markets because emerging markets are generally smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other developed markets. There are also risks of: greater political uncertainties; an economy’s dependence on revenues from particular commodities or on international aid or development assistance; currency transfer restrictions; a limited number of potential buyers for such securities, resulting in increased volatility and limited liquidity for emerging market securities; trading suspensions; and delays and disruptions in securities settlement procedures. In addition, there may be less information available to make investment decisions and more volatile rates of return.

Investment Risk

An investment in the Fund is not a deposit with 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.

Market Risk

Conditions in the U.S. and many foreign economies have resulted, and may continue to result, in certain instruments experiencing unusual liquidity issues, increased price volatility and, in some cases, credit downgrades and increased likelihood of default. These events have reduced the willingness and ability of some lenders to extend credit, and have made it more difficult for some borrowers to obtain financing on attractive terms, if at all. In some cases, traditional market participants have been less willing to make a market in some types of debt instruments, which has affected the liquidity of those instruments. During times of market turmoil, investors tend to look to the safety of securities issued or backed by the U.S. Treasury, causing the prices of these securities to rise and the yields to decline. Reduced liquidity in fixed income and credit markets may negatively affect many issuers worldwide. In addition, global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely impact issuers in a different country or region. A rise in protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the economies of many nations in ways that cannot necessarily be foreseen at the present time.

In response to the financial crisis, the U.S. and other governments and the Federal Reserve and certain foreign central banks have taken steps to support financial markets. In some countries where economic conditions are recovering, they are nevertheless perceived as still fragile. Withdrawal of government support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeeding, could adversely impact the value and liquidity of certain securities. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasi-governmental organizations, including changes in tax laws. The impact of new financial regulation legislation on the markets and the practical implications for market participants may not be fully known for some time. Regulatory changes are causing some financial services companies to exit long-standing lines of business, resulting in dislocations for other market participants. In addition, political and diplomatic events within the U.S. and abroad, such as the United States government’s inability at times to agree on a long-term budget and deficit reduction plan, the threat of a federal government shutdown and threats not to increase the federal government’s debt limit, may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree. The U.S. government has recently reduced the federal corporate income tax rates, and future legislative, regulatory and policy changes may result in more restrictions on international trade, less stringent prudential regulation of certain players in the financial markets, and significant new investments in infrastructure and national defense. Markets may react strongly to expectations about the changes in these policies, which could increase volatility, especially if the markets’ expectations for changes in government policies are not borne out.

Changes in market conditions will not have the same impact on all types of securities. Interest rates have been unusually low in recent years in the United States and abroad. Because there is little precedent for this

25

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

situation, it is difficult to predict the impact of a significant rate increase on various markets. For example, because investors may buy securities or other investments with borrowed money, a significant increase in interest rates may cause a decline in the markets for those investments. Because of the sharp decline in the worldwide price of oil, there is a concern that oil producing nations may withdraw significant assets now held in U.S. Treasuries, which could force a substantial increase in interest rates. Regulators have expressed concern that rate increases may cause investors to sell fixed income securities faster than the market can absorb them, contributing to price volatility. In addition, there is a risk that the prices of goods and services in the U.S. and many foreign economies may decline over time, known as deflation (the opposite of inflation). Deflation may have an adverse effect on stock prices and creditworthiness and may make defaults on debt more likely. If a country’s economy slips into a deflationary pattern, it could last for a prolonged period and may be difficult to reverse.

The precise details and the resulting impact of the United Kingdom’s vote to leave the European Union (the “EU”), commonly referred to as “Brexit,” are not yet known. The effect on the United Kingdom’s economy will likely depend on the nature of trade relations with the EU and other major economies following its exit, which are matters to be negotiated. The outcomes may cause increased volatility and have a significant adverse impact on world financial markets, other international trade agreements, and the United Kingdom and European economies, as well as the broader global economy for some time, which could significantly adversely affect the value of the Fund’s investments in United Kingdom and Europe.

Market Timing Risk

Frequent trading by Fund shareholders poses risks to other shareholders in that Fund, including (i) the dilution of the Fund’s NAV, (ii) an increase in the Fund’s expenses, and (iii) interference with the portfolio manager’s ability to execute efficient investment strategies. Because of specific types of securities in which the Fund may invest, it could be subject to the risk of market timing activities by shareholders.

Other Investment Companies Risk

The Fund may invest in shares of other registered investment companies, including money market funds, exchange-traded funds (“ETFs”). To the extent that the Fund invests in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses, including for example, advisory and administrative fees, charged by those investment companies in addition to the Fund direct fees and expenses and will be subject to the risks associated with investments in those companies. For example, the Fund investments in money market funds are subject to interest rate risk, credit risk, and market risk. The Fund must rely on the investment company in which it invests to achieve its investment objective. If the investment company fails to achieve its investment objective, the value of the Fund investment may decline, adversely affecting the Fund performance. ETFs are subject to the following risks that do not apply to conventional funds: (1) the market price of an ETF’s shares may trade at a discount or premium to its NAV; (2) an active trading market for an ETF’s shares may not develop or be maintained; or (3) trading of an ETF’s shares may be halted if the listing exchange’s officials deem such action appropriate, the shares are delisted from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally. An ETF that tracks an index may not precisely replicate the returns of its benchmark index. To the extent the Fund invests in other investment companies that invest in equity securities, fixed-income securities and/or foreign securities, or that track an index, the Fund are subject to the risks associated with the underlying investments held by the investment company or the index fluctuations to which the investment company is subject. ETFs have expenses associated with their operation, typically including advisory fees.

Securities Lending Risk

A Fund may lend its portfolio securities to brokers, dealers and financial institutions to seek income. There is a risk that a borrower may default on its obligations to return loaned securities; however, a Fund’s securities lending agent indemnifies the Fund against that risk. There is a risk that the assets of a Fund’s securities lending

26

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

agent may be insufficient to satisfy any contractual indemnification requirements to the Fund. Borrowers of a Fund’s securities typically provide collateral in the form of cash that is reinvested in securities. A Fund will be responsible for the risks associated with the investment of cash collateral, including any collateral invested in an affiliated money market fund. A Fund may lose money on its investment of cash collateral or may fail to earn sufficient income on its investment to meet obligations to the borrower. In addition, delays may occur in the recovery of securities from borrowers, which could interfere with a Fund’s ability to vote proxies or to settle transactions and there is the risk of possible loss of rights in the collateral should the borrower fail financially. In any case in which the loaned securities are not returned to the Fund before an ex-dividend date, the payment in lieu of the dividend that the Fund receives from the securities’ borrower would not be treated as a dividend for federal income tax purposes and thus would not qualify for treatment as “qualified dividend income”.

Offsetting Assets and Liabilities

The Fund is a party to enforceable master netting agreements between brokers and counterparties which provide for the right to offset under certain circumstances. The Fund employs multiple money managers and counterparties and has elected not to offset qualifying financial and derivative instruments on the Statement of Assets and Liabilities, as such all financial and derivative instruments are presented on a gross basis. The impacts of netting arrangements that provide the right to offset are detailed below, if applicable. The net amount represents the net receivable or payable that would be due from or to the counterparty in the event of default. Exposure from borrowings and other financing agreements such as repurchase agreements can only be netted across transactions governed by the same Master Agreement with the same legal entity. All amounts reported below represent the balance as of the report date, July 31, 2019.

	Remaining Contractual Maturity of the Agreements As of July 31, 2019
	Overnight and Continuous		<30 days		Between 30 & 90 days		>90 days		Total
Securities Lending Transactions
Common Stocks	$	71,884	$	-	$	-	$	-	$	71,884
Total Borrowings	$	71,884	$	-	$	-	$	-	$	71,884
Gross amount of recognized liabilities for securities lending transactions									$	71,884

Valuation Risk

This is the risk that the Fund has valued a security at a price different from the price at which it can be sold. This risk may be especially pronounced for investments, such as derivatives, which may be illiquid or which may become illiquid and for securities that trade in relatively thin markets and/or markets that experience extreme volatility. If market conditions make it difficult to value certain investments, the Fund may value these investments using more subjective methods, such as fair-value methodologies. Investors who purchase or redeem Fund shares on days when the Fund is holding fair-valued securities may receive fewer or more shares, or lower or higher redemption proceeds, than they would have received if the Fund had not fair-valued the securities or had used a different valuation methodology. The value of foreign securities, certain fixed-income securities and currencies, as applicable, may be materially affected by events after the close of the markets on which they are traded, but before the Fund determines its NAV. A Fund’s ability to value its investments in an accurate and timely manner may be impacted by technological issues and/or errors by third-party service providers, such as pricing services or accounting agents.

6.  Federal Income and Excise Taxes

It is the policy of the Fund to qualify as a regulated investment company (“RIC”), by complying with all applicable provisions of Subchapter M of the Internal Revenue Code, as amended, and to make distributions of

27

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

taxable income sufficient to relieve it from substantially all federal income and excise taxes. For federal income tax purposes, the Fund is treated as a single entity for the purpose of determining such qualification.

The Fund does not have any unrecorded tax liabilities in the accompanying financial statements. The tax year ended January 31, 2019 remains subject to examination by the Internal Revenue Service. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statement of Operations.

The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on returns of income earned or gains realized or repatriated. Taxes are accrued and applied to net investment income, net realized capital gains and net unrealized appreciation (depreciation), as applicable, as the income is earned or capital gains are recorded.

Dividends are categorized in accordance with income tax regulations which may treat certain transactions differently than U.S. GAAP. Accordingly, the character of distributions and composition of net assets for tax purposes may differ from those reflected in the accompanying financial statements.

As of July 31, 2019 the tax cost for the Fund and their respective gross unrealized appreciation (depreciation) were as follows:

Fund	Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Continuous Capital Emerging Markets	$	5,236,936	$	402,469	$	(189,781	)	$	212,688

Under the Regulated Investment Company Modernization Act of 2010 (“RIC MOD”), net capital losses recognized by the Fund in taxable years beginning after December 22, 2010 are carried forward indefinitely and retain their character as short-term and/or long-term losses.

As of January 31, 2019, the Fund did not have any capital loss carryforwards.

7.  Investment Transactions

The aggregate cost of purchases and proceeds from sales and maturities of investments, other than short-term obligations, for the period ended July 31, 2019 were as follows:

Fund	Purchases (non-U.S. Government Securities)		Sales (non-U.S. Government Securities)
Continuous Capital Emerging Markets	$	4,711,260	$	2,860,029

A summary of the Fund’s transactions in the USG Select Fund for the period ended July 31, 2019 were as follows:

Fund	Type of Transaction	January 31, 2019 Shares/Fair Value		Purchases		Sales		July 31, 2019 Shares/Fair Value		Dividend Income
Continuous Capital Emerging Markets	Direct	$	118,300	$	2,959,719	$	2,779,575	$	298,444	$	1,972
Continuous Capital Emerging Markets	Securities Lending		-		770,336		698,452		71,884		N/A

28

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

8.  Securities Lending

The Fund may lend its securities to qualified financial institutions, such as certain broker-dealers, to earn additional income. The borrowers are required to secure their loans continuously with collateral in an amount at least equal to the fair value of the securities loaned, initially in an amount at least equal to 102% of the fair value of domestic securities loaned and 105% of the fair value of international securities loaned. Collateral is monitored and marked-to-market daily. Daily mark-to-market amounts are required to be paid to the borrower or received from the borrower by the end of the following business day. This one day settlement for mark-to-market amounts may result in the collateral being temporarily less than the value of the securities on loan or temporarily more than the required minimum collateral.

To the extent that a loan is collateralized by cash, such cash collateral shall be invested by the securities lending agent (the “Agent”) in money market mutual funds and other short-term investments, provided the investments meet certain quality and diversification requirements. Securities purchased with cash collateral proceeds are listed in the Fund’s Schedule of Investments and the collateral is shown on the Statement of Assets and Liabilities as a payable.

Securities lending income is generated from the demand premium (if any) paid by the borrower to borrow a specific security and from the return on investment of cash collateral, reduced by negotiated rebate fees paid to the borrower and transaction costs. To the extent that a loan is secured by non-cash collateral, securities lending income is generated as a demand premium reduced by transaction costs. The Fund, the Agent, and the Manager retained 80%, 10%, and 10%, respectively, of the income generated from securities lending.

While securities are on loan, the Fund continues to receive certain income associated with that security and any gain or loss in the market price that may occur during the term of the loan. In the case of domestic equities, the value of any dividend is received in the form of a substitute payment approximately equal to the dividend. In the case of foreign securities, a negotiated amount is received that is less than the actual dividend, but higher than the dividend amount minus the foreign tax that the Fund would be subject to on the dividend.

Securities lending transactions pose certain risks to the Fund, including that the borrower may not provide additional collateral when required or return the securities when due, that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower, that non-cash collateral may be subject to legal constraints in the event of a borrower bankruptcy, and that the cash collateral investments could become illiquid and unable to be used to return collateral to the borrower. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the cash collateral available for return to the borrower and any action which impairs its ability to liquidate non-cash collateral to satisfy a borrower default.

As of July 31, 2019, the value of outstanding securities on loan and the value of collateral were as follows:

Fund	Market Value of Securities on Loan		Cash Collateral Received		Non-Cash Collateral Received		Total Collateral Received
Continuous Capital Emerging Markets	$	68,740	$	71,884	$	-	$	71,884

Cash collateral is listed on the Fund’s Schedule of Investments and is shown on the Statement of Assets and Liabilities. Income earned on these investments is included in “Income derived from securities lending” on the Statement of Operations.

Non-cash collateral received by the Fund may not be sold or re-pledged except to satisfy a borrower default. Therefore, non-cash collateral is not included on the Fund’s Schedule of Investments or Statement of Assets and Liabilities.

29

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

9.  Borrowing Arrangements

Effective November 15, 2018 (the “Effective Date”), the Fund, along with certain other funds managed by the Manager (“Participating Funds”), entered into a committed revolving line of credit (the “Committed Line”) agreement with State Street Bank and Trust Company (the “Bank”) to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Committed Line is $250 million with interest at a rate equal to the higher of (a) one-month London Inter-Bank Offered Rate (“LIBOR”) plus 1.25% per annum or (b) the Federal Funds rate plus 1.25% per annum on amounts borrowed. Each of the Participating Funds will pay a closing fee of $100,000 on the Effective Date and a quarterly commitment fee at a rate of 0.25% per annum on the unused portion of the Committed Line amount. The Committed Line expires November 14, 2019, unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

On the Effective Date, the Fund, along with certain other Participating Funds managed by the Manager, also entered into an uncommitted discretionary demand revolving line of credit (the “Uncommitted Line”) agreement with the Bank to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Uncommitted Line is $50 million with interest at a rate equal to the higher of (a) one-month LIBOR plus 1.25% per annum or (b) the Federal Funds rate plus 1.25% per annum on each outstanding loan. Each of the Participating Funds will pay a closing fee of $35,000 on the Effective Date. The Uncommitted Line expires November 14, 2019 unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

The Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, along with commitment fees, that have been allocated among the Participating Funds based on average daily net assets.

During the period ended July 31, 2019, the Fund did not utilize this facility.

10.  Capital Share Transactions

The tables below summarize the activity in capital shares for each Class of the Fund:

	Institutional Class
	Six Months Ended July 31, 2019				December 17, 2018A to January 31, 2019
	(unaudited)
Continuous Capital Emerging Markets Fund	Shares		Amount		Shares			Amount
Shares sold		-	$	-		140	B	$	-	B
Net increase in shares outstanding		-	$	-		140		$	-
	Y Class
	Six Months Ended July 31, 2019				December 17, 2018A to January 31, 2019
	(unaudited)
Continuous Capital Emerging Markets Fund	Shares		Amount		Shares			Amount
Shares sold		172,840	$	1,924,502		18,956	B	$	199,985	B
Net increase in shares outstanding		172,840	$	1,924,502		18,956		$	199,985
	Investor Class
	Six Months Ended July 31, 2019				December 17, 2018A to January 31, 2019
	(unaudited)
Continuous Capital Emerging Markets Fund	Shares		Amount		Shares			Amount
Shares sold		660	$	7,500		798	B	$	8,477	B
Net increase in shares outstanding		660	$	7,500		798		$	8,477

^A Commencement of operations.

^B Total seed capital was received in the amounts of $2,600,000, $100,000, and $100,000 for the Institutional, Y, and Investor Classes, respectively. As a result, shares were issued in the total amounts of 260,000, 10,000, and 10,000 for Institutional, Y, and Investor Classes, respectively.

30

American Beacon Continuous Capital Emerging Markets Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

11.  Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

31

American Beacon Continuous Capital Emerging Markets Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Institutional Class
	Six Months Ended July 31, 2019			December 17, 2018A to January 31, 2019
	(unaudited)
Net asset value, beginning of period	$	10.85		$	10.00
Income (loss) from investment operations:
Net investment income		0.18			0.01	B
Net gains on investments (both realized and unrealized)		0.15			0.84
Total income (loss) from investment operations		0.33			0.85
Dividends from net investment income		–			–
Distributions from net realized gains		–			–
Net asset value, end of period	$	11.18		$	10.85
Total returnC		3.04	%D		8.50	%D
Ratios and supplemental data:
Net assets, end of period	$	2,908,170		$	2,821,409
Ratios to average net assets:
Expenses, before reimbursements		11.16	%E		39.68	%E
Expenses, net of reimbursements		1.15	%E		1.15	%E
Net investment (loss), before expense reimbursements		(6.79	)%E		(37.54	)%E
Net investment income, net of reimbursements		3.22	%E		0.99	%E
Portfolio turnover rate		63	%D		24	%F

^A  Commencement of operations.

^B  Net investment income includes a significant dividend payment from Gazprom Neft PJSC, ADR and iShares Core MSCI Emerging Markets ETF amounting to $0.0057.

^C  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^D  Not annualized.

^E  Annualized.

^F  Portfolio turnover rate is for the period from December 17, 2018 through January 31, 2019 and is not annualized.

See accompanying notes

32

American Beacon Continuous Capital Emerging Markets Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Y Class
	Six Months Ended July 31, 2019			December 17, 2018A to January 31, 2019
	(unaudited)
Net asset value, beginning of period	$	10.85		$	10.00
Income (loss) from investment operations:
Net investment income		0.14			0.01	B
Net gains on investments (both realized and unrealized)		0.19			0.84
Total income (loss) from investment operations		0.33			0.85
Dividends from net investment income		-			-
Distributions from net realized gains		-			-
Redemption fees added to beneficial interests		-			-
Net asset value, end of period	$	11.18		$	10.85
Total returnC		3.04	%D		8.50	%D
Ratios and supplemental data:
Net assets, end of period	$	2,256,523		$	314,086
Ratios to average net assets:
Expenses, before reimbursements		11.12	%E		44.25	%E
Expenses, net of reimbursements		1.25	%E		1.25	%E
Net investment (loss), before expense reimbursements		(6.38	)%E		(41.28	)%E
Net investment income, net of reimbursements		3.49	%E		1.72	%E
Portfolio turnover rate		63	%D		24	%F

^A  Commencement of operations.

^B  Net investment income includes a significant dividend payment from Gazprom Neft PJSC, ADR and iShares Core MSCI Emerging Markets ETF amounting to $0.0031.

^C  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^D  Not annualized.

^E  Annualized.

^F  Portfolio turnover rate is for the period from December 17, 2018 through January 31, 2019 and is not annualized.

See accompanying notes

33

American Beacon Continuous Capital Emerging Markets Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Investor Class
	Six Months Ended July 31, 2019			December 17, 2018A to January 31, 2019
	(unaudited)
Net asset value, beginning of period	$	10.84		$	10.00
Income (loss) from investment operations:
Net investment income		0.15			0.01	B
Net gains on investments (both realized and unrealized)		0.16			0.83
Total income (loss) from investment operations		0.31			0.84
Dividends from net investment income		-			-
Distributions from net realized gains		-			-
Net asset value, end of period	$	11.15		$	10.84
Total returnC		2.86	%D		8.40	%D
Ratios and supplemental data:
Net assets, end of period	$	127,781		$	117,051
Ratios to average net assets:
Expenses, before reimbursements		14.82	%E		39.63	%E
Expenses, net of reimbursements		1.53	%E		1.53	%E
Net investment (loss), before expense reimbursements		(10.43	)%E		(37.17	)%E
Net investment income, net of reimbursements		2.85	%E		0.93	%E
Portfolio turnover rate		63	%D		24	%F

^A  Commencement of operations.

^B  Net investment income includes a significant dividend payment from Gazprom Neft PJSC, ADR and iShares Core MSCI Emerging Markets ETF amounting to $0.0010.

^C  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^D  Not annualized.

^E  Annualized.

^F  Portfolio turnover rate is for the period from December 17, 2018 through January 31, 2019 and is not annualized.

See accompanying notes

34

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35

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36

Delivery of Documents

eDelivery is NOW AVAILABLE - Stop traditional mail delivery and receive your

shareholder reports and summary prospectus on-line. Sign up at

www.americanbeaconfunds.com

If you invest in the Fund through a financial institution, you may be able to receive the Fund’s regulatory mailings, such as the Prospectus, Annual Report and Semi-Annual Report, by e-mail. If you are interested in this option, please go to www.icsdelivery.com and search for your financial institution’s name or contact your financial institution directly.

To obtain more information about the Fund:

By E-mail:	On the Internet:
american_beacon.funds@ambeacon.com	Visit our website at www.americanbeaconfunds.com
By Telephone: Call (800) 658-5811	By Mail: American Beacon Funds P.O. Box 219643 Kansas City, MO 64121-9643
Availability of Quarterly Portfolio Schedules	Availability of Proxy Voting Policy and Records
In addition to the Schedule of Investments provided in each semi-annual and annual report, the Fund files a complete schedule of its portfolio holdings with the Securities and Exchange Commission (“SEC”) on Form N-Q as of the first and third fiscal quarters. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-2736. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling (800)-SEC-0330. A complete schedule of the American Beacon Continuous Capital Emerging Markets Fund’s portfolio holdings is also available at www.americanbeaconfunds.com approximately sixty days after the end of each quarter.	A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Fund’s Statement of Additional Information, is available free of charge on the Fund’s website www.americanbeaconfunds.com and by calling 1-800-967-9009 or by accessing the SEC’s website at www.sec.gov. The Fund’s proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Fund’s Forms N-PX are available on the SEC’s website at www.sec.gov. The Fund’s proxy voting record may also be obtained by calling 1-800-967-9009.

Fund Service Providers:

CUSTODIAN State Street Bank and Trust Company Boston, Massachusetts TRANSFER AGENT DST Asset Manager Solutions, Inc. Quincy, Massachusetts INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP Boston, Massachusetts DISTRIBUTOR Resolute Investment Distributors, Inc. Irving, Texas

This report is prepared for shareholders of the American Beacon Funds and may be distributed to others only if preceded or accompanied by a current Prospectus or Summary Prospectus.

American Beacon Funds and American Beacon Continuous Capital Emerging Markets Fund are service marks of American Beacon Advisors, Inc.

SAR 1/19

About American Beacon Advisors

Since 1986, American Beacon Advisors has offered a variety of products and investment advisory services to numerous institutional and retail clients, including a variety of mutual funds, corporate cash management, and separate account management.

Our clients include defined benefit plans, defined contribution plans, foundations, endowments, corporations, financial planners, and other institutional investors. With American Beacon Advisors, you can put the experience of a multi-billion dollar asset management firm to work for your company.

CRESCENT SHORT DURATION HIGH INCOME FUND

The Fund’s investments in high-yield securities, including loans, restricted securities and floating rate securities are subject to greater levels of credit, interest rate, market and liquidity risks than investment-grade securities. Investing in foreign securities may involve heightened risk due to currency fluctuations and economic and political risks. 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.

Any opinions herein, including forecasts, reflect our judgment as of the end of the reporting period and are subject to change. Each advisor’s strategies and each Fund’s portfolio composition will change depending on economic and market conditions. This report is not a complete analysis of market conditions, and, therefore, should not be relied upon as investment advice. Although economic and market information has been compiled from reliable sources, American Beacon Advisors, Inc. makes no representation as to the completeness or accuracy of the statements contained herein.

American Beacon Funds July 31, 2019

Contents

President’s Message	1
Performance Overview	2
Expense Examples	4
Schedule of Investments:
American Beacon Crescent Short Duration High Income Fund	6
Financial Statements	20
Notes to Financial Statements	23
Financial Highlights:
American Beacon Crescent Short Duration High Income Fund	43
Disclosure Regarding Approval of the Management and Investment Advisory Agreements	48

Additional Fund Information Back Cover

President’s Message

Dear Shareholders,   At American Beacon, we take our heritage as a fiduciary very seriously – and we apply that mindset to all aspects of our business as a fund manager. As a result, for more than 30 years, we have endeavored to:   u   Identify, engage and oversee the best money managers. As a manager of managers, our goal is to engage the most effective money managers for each asset class, investment style and market strategy we offer. We are committed to partnering with those we judge to be “the best of the best” when it comes to choosing sub-advisors for our mutual funds. Whether our due-diligence process results in the selection of one sub-advisor or multiple sub-advisors, we select those we believe show the greatest potential to help us meet the high standards you’ve come to expect.

u Offer a variety of innovative investment solutions. Our mutual funds – which span the domestic, international, global, frontier and emerging markets – are sub-advised by experienced money managers who employ distinctive, proprietary investment processes to manage assets through a variety of economic and market conditions. From offering some of the first multi-manager funds, one of the first retirement income funds and the first open-ended mutual fund in the U.S. to focus primarily on frontier-market debt, our robust history includes applying a disciplined, solutions-based approach to our product development process in an effort to help you grow your assets while mitigating risk.

u Provide a solutions-based approach to achieving long-term investment goals. We seek to provide investment solutions that might enable you to benefit from taking a more disciplined approach to investing. Our mutual funds provide access to institutional-quality, research-intensive investment managers with diverse processes and styles. Over the long run, having such access and spending time in the market – rather than trying to time the market – may better position you to reach your long-term investment goals during market upswings and potentially insulate against market downswings.

Our management approach is more than a concept; it’s the cornerstone of American Beacon’s culture. And we strive to employ it at every turn as we seek to provide a well-diversified line of investment solutions to help our shareholders seek long-term rewards.

Thank you for your continued interest in American Beacon. For additional information about our mutual funds or to access your account information, please visit our website at www.americanbeaconfunds.com.

Best Regards,

Gene L. Needles, Jr.

President

American Beacon Funds

1

American Beacon Crescent Short Duration High Income Fund^SM

Performance Overview

July 31, 2019 (Unaudited)

The Investor Class of the American Beacon Crescent Short Duration High Income Fund (the “Fund”) returned 3.97% for the six-month period ended July 31, 2019, underperforming the ICE BofAML 1-5 Year BB-B Cash Pay High Yield Index (the “Index”) return of 4.42%. For additional comparison, the ICE BofAML US High Yield Index returned 5.86%, and the S&P LSTA Leveraged Loan Index returned 3.94%.

Average Annual Total Returns for the Period ended July 31, 2019
	Ticker	6 Months*			1 Year			3 Years			Since Inception 10/1/2014
Institutional Class (1,3)	ACHIX		4.14	%		4.27	%		4.64	%		3.53	%
Y Class (1,3)	ACHYX		4.21	%		4.16	%		4.53	%		3.44	%
Investor Class (1,3)	ACHPX		3.97	%		3.84	%		4.23	%		3.16	%
A without Sales Charge (1,3)	ACHAX		4.05	%		3.78	%		4.16	%		3.09	%
A with Sales Charge (1,3)	ACHAX		1.50	%		1.20	%		3.29	%		2.54	%
C without Sales Charge (1,3)	ACHCX		3.55	%		3.03	%		3.42	%		2.35	%
C with Sales Charge (1,3)	ACHCX		2.55	%		2.03	%		3.42	%		2.35	%
ICE BofAML U.S High Yield Cash Pay BB-B 1-5 Year Index (2)			4.42	%		6.38	%		5.86	%		4.59	%

* Not Annualized.

1. 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 calculated based on the published end of day net asset values as of the 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, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights. A portion of the fees charged to each Class of the Fund has been waived since Fund inception. Performance prior to waiving fees was lower than the actual returns shown since inception. A Class shares have a maximum sales charge of 2.50%. The maximum contingent deferred sales charge for the C Class is 1.00% for shares redeemed within one year of the date of purchase.

2. The ICE BofAML U.S. High Yield Cash Pay BB-B 1-5 Year Index is an unmanaged index that generally tracks the performance of BB-B rated U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market with maturities of 1 to 5 years. One cannot directly invest in an index.

3. The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the Institutional, Y, Investor, A, and C Class shares were 1.09%, 1.15%, 2.32%, 1.40% and 2.18%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Fixed-rate securities outperformed floating rate as the Federal Reserve Bank (the “Fed”) cut interest rates for the first time in over ten years and bond market yields declined. The Fund benefited from its exposure to fixed-rate high yield; however, its allocation to floating-rate bank loans lagged given their shorter duration. Note that the Fund’s Index includes only fixed-rate securities. The Fund’s average duration was approximately 2.0 years during the period, as compared to 2.2 years for the Index.

The Fund’s sub-advisor actively allocates among traditional fixed-rate high yield, floating-rate bank loan and private debt sectors of the bond market seeking attractive risk-adjusted returns with lower volatility than the market. This flexibility also allows for opportunity to invest in securities outside of the traditional indices. On average during the period, the Fund held approximately 70% of assets in traditional high yield bonds, 19% in floating-rate bank loans and 9% in private debt, with the remainder in cash.

The Fund benefited from good security selection in Media, Utility, Technology and Capital Goods, but it was offset by underperformance from Energy and Healthcare selection. Overall, however, the Fund’s holdings are highly diversified with over 450 positions in total and only 4 over 1% each. Sector allocation also has relatively little impact on performance over time as sector exposures are typically within +/-3% of the Index weight.

Given the Fed’s abrupt change in outlook for interest rates during the period, the Fund’s has been modifying its approach toward the credit markets by screening for higher quality securities and by monitoring relative yields between fixed and floating-rate instruments given the potential for even lower rates going forward.

2

American Beacon Crescent Short Duration High Income Fund^SM

Performance Overview

July 31, 2019 (Unaudited)

Top Ten Holdings (% Net Assets)
CCO Holdings LLC / CCO Holdings Capital Corp., 5.375%, Due 5/1/2025		1.3
Navient Corp., 6.125%, Due 3/25/2024		1.2
MGM Resorts International, 5.750%, Due 6/15/2025		1.1
Tenet Healthcare Corp., 6.250%, Due 2/1/2027		1.1
Freeport-McMoRan, Inc., 4.550%, Due 11/14/2024		1.0
Sirius XM Radio, Inc., 5.375%, Due 4/15/2025		1.0
Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu, 5.125%, Due 7/15/2023		1.0
Dell International LLC / EMC Corp., 7.125%, Due 6/15/2024		0.9
HCA, Inc., 5.875%, Due 5/1/2023		0.9
Sprint Corp., 7.250%, Due 9/15/2021		0.8
Total Fund Holdings	519
Sector Allocation (% Investments)
Communications		16.7
Financial		14.1
Consumer, Non-Cyclical		12.2
Industrial		9.5
Consumer, Cyclical		8.9
Energy		8.8
Technology		6.5
Consumer		5.7
Basic Materials		4.2
Service		3.7
Manufacturing		2.4
Health Care		2.3
Utilities		1.8
Telecommunications		1.8
Media		0.9
Transportation		0.2
Foreign Sovereign Obligations		0.2
Defense		0.1

3

American Beacon Crescent Short Duration High Income Fund^SM

Expense Examples

July 31, 2019 (Unaudited)

Fund Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees, if applicable, and (2) ongoing costs, including management fees, distribution (12b-1) fees, sub-transfer agent fees, and other Fund expenses. The Examples are intended to help you understand the ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from February 1, 2019 through July 31, 2019.

Actual Expenses

The “Actual” lines of the tables provide information about actual account values and actual expenses. You may use the information on this page, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = $8.60), then multiply the result by the “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. Shareholders of the Investor and Institutional Classes that invest in the Fund through an IRA or Roth IRA may be subject to a custodial IRA fee of $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 higher.

Hypothetical Example for Comparison Purposes

The “Hypothetical” lines of the tables provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed 5% per year rate of return before expenses (not the Fund’s actual return). You may compare the ongoing costs of investing in the Fund with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Shareholders of the Investor and Institutional Classes that invest in the Funds through an IRA or Roth IRA may be subject to a custodial IRA fee of $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 higher.

You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs charged by the Fund, such as sales charges (loads) or redemption fees, as applicable. Similarly, the expense examples for other funds do not reflect any transaction costs charged by those funds, such as sales charges (loads), redemption fees or exchange fees. Therefore, the “Hypothetical” lines of the tables are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If you were subject to any transaction costs during the period, your costs would have been higher.

4

American Beacon Crescent Short Duration High Income Fund^SM

Expense Examples

July 31, 2019 (Unaudited)

American Beacon Crescent Short Duration High Income Fund
	Beginning Account Value 2/1/2019		Ending Account Value 7/31/2019		Expenses Paid During Period 2/1/2019-7/31/2019*
Institutional Class
Actual		$1,000.00		$1,041.40		$4.30
Hypothetical**		$1,000.00		$1,020.58		$4.26
Y Class
Actual		$1,000.00		$1,042.10		$4.81
Hypothetical**		$1,000.00		$1,020.08		$4.76
Investor Class
Actual		$1,000.00		$1,039.70		$6.22
Hypothetical**		$1,000.00		$1,018.70		$6.16
A Class
Actual		$1,000.00		$1,040.50		$6.32
Hypothetical**		$1,000.00		$1,018.60		$6.26
C Class
Actual		$1,000.00		$1,035.50		$10.09
Hypothetical**		$1,000.00		$1,014.88		$9.99

* Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.85%, 0.95%, 1.23%, 1.25%, and 2.00% for the Institutional, Y, Investor, A, and C Classes, respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half-year period.

** 5% return before expenses.

5

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Shares			Fair Value
COMMON STOCKS - 0.00% (Cost $4,615)
Financials - 0.00%
Diversified Financial Services - 0.00%
Jones Energy II, Inc.A			355		$	3,550
WARRANTS - 0.00% (Cost $0)
Financials - 0.00%
Jones Energy II, Inc., 5/17/2024, Strike Price $31.67A			1,570			455
	Principal Amount
BANK LOAN OBLIGATIONSB - 24.95%
Basic Materials - 1.05%
Berry Global, Inc., 4.902%, Due 7/1/2026, USD Term Loan U, (3-mo. LIBOR + 2.500%)		$	130,333			130,157
Golden Nugget, Inc.,
4.984%, Due 10/4/2023, 2017 Incremental Term Loan B, (1-mo. LIBOR + 2.750%)			21,985			22,009
5.064%, Due 10/4/2023, 2017 Incremental Term Loan B, (1-mo. LIBOR + 2.750%)			17,625			17,644
H.B. Fuller Co., 4.272%, Due 10/20/2024, 2017 Term Loan B, (1-mo. LIBOR + 2.000%)			96,968			96,362
Ineos US Finance LLC, Due 3/31/2024, 2017 USD Term Loan BC			131,666			129,563
Loparex Holding B.V., 6.446%, Due 4/11/2025, 2018 Term Loan, (1 Week LIBOR + 4.250%)			89,296			88,849
Messer Industries LLC, 4.830%, Due 3/1/2026, 2018 USD Term Loan, (3-mo. LIBOR + 2.500%)			127,680			127,042
PQ Corp., 4.756%, Due 2/8/2025, 2018 Term Loan B, (3-mo. LIBOR + 2.500%)			95,540			95,421
Starfruit Finco B.V., 5.610%, Due 10/1/2025, 2018 USD Term Loan B, (1-mo. LIBOR + 3.250%)			157,962			155,067
Univar, Inc., 4.484%, Due 7/1/2024, 2017 USD Term Loan B, (1-mo. LIBOR + 2.250%)			91,920			91,997
						954,111
Consumer - 5.43%
Albertsons LLC, 5.234%, Due 11/17/2025, Term Loan B7, (1-mo. LIBOR + 3.000%)			85,723			85,800
AMCP Clean Acquisition Co. LLC,
6.580%, Due 6/16/2025, 2018 Delayed Draw Term Loan, (3-mo. LIBOR + 4.250%)			21,782			21,510
6.580%, Due 6/16/2025, 2018 Term Loan, (3-mo. LIBOR + 4.250%)			90,028			88,902
APX Group, Inc.,
7.330%, Due 4/1/2024, 2018 Term Loan B, (3-mo. LIBOR + 5.000%)			42,199			40,370
9.250%, Due 4/1/2024, 2018 Term Loan B, (3-mo. PRIME + 4.000%)			49			46
Bass Pro Group LLC, 7.234%, Due 9/25/2024, Term Loan B, (1-mo. LIBOR + 5.000%)			127,223			120,180
Boyd Gaming Corp., 4.446%, Due 9/15/2023, Term Loan B3, (1 Week LIBOR + 2.250%)			122,090			121,998
Builders FirstSource, Inc., 5.330%, Due 2/29/2024, 2017 Term Loan B, (3-mo. LIBOR + 3.000%)			12,605			12,589
Caesars Resort Collection LLC, 4.984%, Due 12/22/2024, 2017 1st Lien Term Loan B, (1-mo. LIBOR + 2.750%)			113,711			112,735
Clearwater Paper Corp., Due 7/24/2026, Term Loan BC			100,000			100,500
Comet Acquisition, Inc., 6.022%, Due 10/24/2025, Term Loan, (3-mo. LIBOR + 3.500%)			46,765			46,473
CRCI Longhorn Holdings, Inc., 5.869%, Due 8/8/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 3.500%)			45,808			45,198
Crown Finance US, Inc., 4.484%, Due 2/28/2025, 2018 USD Term Loan, (1-mo. LIBOR + 2.250%)			110,737			110,271
CSC Holdings LLC, 4.825%, Due 1/25/2026, 2018 Term Loan B, (1-mo. LIBOR + 2.500%)			123,438			123,283
CVS Holdings LP,
4.990%, Due 2/6/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 2.750%)			37,200			37,154
5.080%, Due 2/6/2025, 2018 1st Lien Term Loan, (3-mo. LIBOR + 2.750%)			4,444			4,439
Dhanani Group, Inc., 5.984%, Due 7/20/2025, 2018 Term Loan B, (1-mo. LIBOR + 3.750%)			44,970			43,284
Diamond Sports Group LLC, Due 7/18/2026, Term LoanC			137,000			137,226
Emerald TopCo, Inc., Due 7/22/2026, Term LoanC			92,000			91,747
Endo Luxembourg Finance Co. S.a.r.l., 6.500%, Due 4/29/2024, 2017 Term Loan B, (3-mo. LIBOR + 4.250%)			122,500			111,552
Financial & Risk US Holdings, Inc., 5.984%, Due 10/1/2025, 2018 USD Term Loan, (1-mo. LIBOR + 3.750%)			99,500			99,393
Gray Television, Inc., 4.832%, Due 1/2/2026, 2018 Term Loan C, (3-mo. LIBOR + 2.500%)			99,500			99,695
GYP Holdings Corp.,
Due 6/1/2025, 2018 Term Loan BC			10,170			10,016
4.984%, Due 6/1/2025, 2018 Term Loan B, (1-mo. LIBOR + 2.750%)			34,963			34,431
HLF Financing S.a r.l., 5.484%, Due 8/18/2025, 2018 Term Loan B, (1-mo. LIBOR + 3.250%)			104,213			104,141

See accompanying notes

6

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount			Fair Value
BANK LOAN OBLIGATIONSB - 24.95% (continued)
Consumer - 5.43% (continued)
iHeartCommunications, Inc., Due 5/1/2026, Exit Term LoanC		$	56,000		$	56,376
IRB Holding Corp.,
5.550%, Due 2/5/2025, 1st Lien Term Loan, (3-mo. LIBOR + 3.250%)			123,125			122,554
5.556%, Due 2/5/2025, 1st Lien Term Loan, (3-mo. LIBOR + 3.250%)			313			311
Kettle Cuisine LLC, 6.020%, Due 8/22/2025, 2018 Term Loan, (3-mo. LIBOR + 3.750%)			167,845			165,747
Mohegan Tribal Gaming Authority, 6.234%, Due 10/13/2023, 2016 Term Loan B, (1-mo. LIBOR + 4.000%)			40,059			37,155
Next Level Apparel, Inc., 8.180%, Due 7/17/2024, 2018 Term Loan, (1 Week LIBOR + 6.000%)			189,232			186,394
Panther BF Aggregator LP, 5.734%, Due 4/30/2026, USD Term Loan B, (1-mo. LIBOR + 3.500%)			100,000			99,938
Parexel International Corp., 4.984%, Due 9/27/2024, Term Loan B, (1-mo. LIBOR + 2.750%)			67,647			65,238
PCI Gaming Authority, 5.234%, Due 5/29/2026, Term Loan, (1-mo. LIBOR + 3.000%)			105,802			106,501
Playpower, Inc., 7.758%, Due 5/8/2026, 2019 Term Loan, (1-mo. LIBOR + 5.500%)			241,834			242,439
Pure Fishing, Inc., 6.830%, Due 11/30/2025, Term Loan, (3-mo. LIBOR + 4.500%)			99,750			93,703
R.R. Donnelley & Sons Co., 7.262%, Due 1/15/2024, 2018 Term Loan B, (1-mo. LIBOR + 5.000%)			49,625			49,212
RSC Acquisition, Inc.,
6.506%, Due 11/30/2022, 2018 1st Lien Term Loan, (3-mo. LIBOR + 4.250%)			6,936			6,867
6.553%, Due 11/30/2022, 2018 1st Lien Term Loan, (3-mo. LIBOR + 4.250%)			9,711			9,614
6.595%, Due 11/30/2022, 2018 1st Lien Term Loan, (3-mo. LIBOR + 4.250%)			262,865			260,236
Scientific Games International, Inc., 4.984%, Due 8/14/2024, 2018 Term Loan B5, (1-mo. LIBOR + 2.750%)			82,540			82,037
Six Flags Theme Parks, Inc., 4.240%, Due 4/17/2026, 2019 Term Loan B, (1-mo. LIBOR + 2.000%)			100,000			100,344
SMG Holdings, Inc., 5.234%, Due 1/23/2025, 2017 1st Lien Term Loan, (1-mo. LIBOR + 3.000%)			123,438			122,923
SRS Distribution, Inc., 5.484%, Due 5/23/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 3.250%)			86,931			84,019
Staples, Inc., 7.332%, Due 4/16/2026, 7 Year Term Loan, (1-mo. LIBOR + 5.000%)			78,648			76,633
Station Casinos LLC, 4.740%, Due 6/8/2023, 2016 Term Loan B, (1-mo. LIBOR + 2.500%)			86,774			86,888
Strategic Partners Acquisition Corp., 5.984%, Due 6/30/2023, 2016 Term Loan, (1-mo. LIBOR + 3.750%)			117,317			117,170
Sunshine Luxembourg VII SARL, Due 7/16/2026, USD 1st Lien Term LoanC			100,000			100,325
TGP Holdings III LLC,
6.580%, Due 9/25/2024, 2018 1st Lien Term Loan, (3-mo. LIBOR + 4.250%)			192,249			177,990
10.830%, Due 9/25/2025, 2nd Lien Term Loan, (3-mo. LIBOR + 8.500%)			50,000			46,500
TMK Hawk Parent Corp.,
5.700%, Due 8/28/2024, 2017 1st Lien Term Loan, (6-mo. LIBOR + 3.500%)			12,111			10,325
5.740%, Due 8/28/2024, 2017 1st Lien Term Loan, (1-mo. LIBOR + 3.500%)			82,544			70,369
5.830%, Due 8/28/2024, 2017 1st Lien Term Loan, (3-mo. LIBOR + 3.500%)			241			206
United Natural Foods, Inc., 6.484%, Due 10/22/2025, Term Loan B, (1-mo. LIBOR + 4.250%)			99,500			83,767
United Rentals, Inc., 3.984%, Due 10/31/2025, Term Loan B, (1-mo. LIBOR + 1.750%)			99,250			99,275
Varsity Brands, Inc., 5.734%, Due 12/15/2024, 2017 Term Loan B, (1-mo. LIBOR + 3.500%)			61,439			60,441
VT Topco, Inc.,
Due 8/1/2025, 2018 1st Lien Term LoanC			5,008			4,993
6.080%, Due 8/1/2025, 2018 1st Lien Term Loan, (3-mo. LIBOR + 3.750%)			43,569			43,433
Wand NewCo 3, Inc., 5.860%, Due 2/5/2026, 2019 1st Lien Term Loan, (1-mo. LIBOR + 3.500%)			100,000			100,550
Wheel Pros LLC, 6.984%, Due 4/4/2025, 1st Lien Term Loan, (1-mo. LIBOR + 4.750%)			166,322			164,313
						4,937,719
Defense - 0.09%
TransDigm, Inc., 4.830%, Due 6/9/2023, 2018 Term Loan F, (3-mo. LIBOR + 2.500%)			81,809			81,336
Energy - 0.66%
California Resources Corp., 12.616%, Due 12/31/2021, Second Out Term Loan, (1-mo. LIBOR + 10.375%)			12,000			12,018
Energy & Exploration Partners, Inc., 5.000%, Due 5/13/2022, 2016 2nd Lien PIK Term Loan, PIK (in-kind rate 5.000%)D I			7,171			-
Grizzly Acquisitions, Inc., 5.570%, Due 10/1/2025, 2018 Term Loan B, (3-mo. LIBOR + 3.250%)			99,250			99,286
Lucid Energy Group II LLC, 5.234%, Due 2/17/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 3.000%)			123,438			118,808
McDermott Technology Americas, Inc., 7.234%, Due 5/9/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 5.000%)			123,438			117,698

See accompanying notes

7

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount			Fair Value
BANK LOAN OBLIGATIONSB - 24.95% (continued)
Energy - 0.66% (continued)
Medallion Midland Acquisition LLC, 5.484%, Due 10/30/2024, 1st Lien Term Loan, (1-mo. LIBOR + 3.250%)		$	94,198		$	92,785
PowerTeam Services LLC, 5.580%, Due 3/6/2025, 2018 1st Lien Term Loan, (3-mo. LIBOR + 3.250%)			57,987			54,460
Prairie ECI Acquiror LP, 7.080%, Due 3/11/2026, Term Loan B, (3-mo. LIBOR + 4.750%)			104,553			104,788
						599,843
Financial - 4.02%
Acrisure LLC, 6.772%, Due 11/22/2023, 2017 Term Loan B, (3-mo. LIBOR + 4.250%)			130,874			129,975
Apollo Commercial Real Estate Finance, Inc., 5.075%, Due 5/15/2026, Term Loan B, (1-mo. LIBOR + 2.750%)			100,000			99,625
AssuredPartners, Inc., 5.734%, Due 10/22/2024, 2017 1st Lien Add-On Term Loan, (1-mo. LIBOR + 3.500%)			132,236			131,481
Asurion LLC,
5.234%, Due 11/3/2023, 2018 Term Loan B6, (1-mo. LIBOR + 3.000%)			7,979			7,994
5.234%, Due 11/3/2024, 2018 Term Loan B7, (1-mo. LIBOR + 3.000%)			99,270			99,448
8.734%, Due 8/4/2025, 2017 2nd Lien Term Loan, (1-mo. LIBOR + 6.500%)			101,436			103,169
Avolon TLB Borrower (US) LLC, 4.022%, Due 1/15/2025, Term Loan B3, (1-mo. LIBOR + 1.750%)			92,340			92,527
B.C. Unlimited Liability Co.,
4.484%, Due 2/16/2024, Term Loan B3, (1-mo. LIBOR + 2.250%)			112,147			112,119
6.330%, Due 4/6/2026, 2019 Term Loan B2, (3-mo. LIBOR + 4.000%)			34,965			35,159
Blackstone CQP Holdco LP, 5.887%, Due 9/30/2024, Term Loan B, (3-mo. LIBOR + 3.500%)			107,424			107,827
Capital Automotive LP, 8.234%, Due 3/24/2025, 2017 2nd Lien Term Loan, (1-mo. LIBOR + 6.000%)			114,103			114,318
Citadel Securities LP, 5.734%, Due 2/22/2026, Term Loan B, (1-mo. LIBOR + 3.500%)			111,417			111,696
DTZ U.S. Borrower LLC, 5.484%, Due 8/21/2025, 2018 Add On Term Loan B, (1-mo. LIBOR + 3.250%)			130,047			130,454
Edelman Financial Center LLC, 5.564%, Due 7/21/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 3.250%)			69,650			69,637
EIG Management Co. LLC, 5.991%, Due 2/22/2025, 2018 Term Loan B, (1-mo. LIBOR + 3.750%)			102,700			102,380
Forest City Enterprises LP, 6.234%, Due 12/7/2025, Term Loan B, (1-mo. LIBOR + 4.000%)			99,500			100,277
Franklin Square Holdings LP, 4.750%, Due 8/1/2025, 2018 Term Loan B, (1-mo. LIBOR + 2.500%)			99,250			99,498
Genworth Holdings, Inc., 6.761%, Due 3/7/2023, Term Loan, (1-mo. LIBOR + 4.500%)			95,508			96,105
Iron Mountain, Inc., 3.984%, Due 1/2/2026, 2018 Term Loan B, (1-mo. LIBOR + 1.750%)			15,162			14,915
iStar, Inc.,
4.979%, Due 6/28/2023, 2016 Term Loan B, (1-mo. LIBOR + 2.750%)			40,618			40,720
5.048%, Due 6/28/2023, 2016 Term Loan B, (1-mo. LIBOR + 2.750%)			41,447			41,551
Jane Street Group LLC, 5.234%, Due 8/25/2022, 2018 Term Loan B, (1-mo. LIBOR + 3.000%)			125,121			124,339
Jefferies Finance LLC, 6.000%, Due 6/3/2026, 2019 Term Loan, (1-mo. LIBOR + 3.750%)			100,000			99,719
Kestra Financial, Inc., 6.780%, Due 6/3/2026, 2019 Term Loan, (3-mo. LIBOR + 4.250%)			149,883			148,634
LPL Holdings, Inc., 4.519%, Due 9/23/2024, 2017 1st Lien Term Loan B, (3-mo. LIBOR + 2.250%)			81,585			81,738
Nuvei Technologies Corp., Due 9/29/2025, 2019 Term LoanC			125,000			123,125
Prime Security Services Borrower LLC,
Due 5/2/2022, 2016 1st Lien Term LoanC			29,000			28,950
4.984%, Due 5/2/2022, 2016 1st Lien Term Loan, (1-mo. LIBOR + 2.750%)			63,034			62,925
SBA Senior Finance II LLC, 4.240%, Due 4/11/2025, 2018 Term Loan B, (1-mo. LIBOR + 2.000%)			166,739			166,207
Sedgwick Claims Management Services, Inc., 5.484%, Due 12/31/2025, 2018 Term Loan B, (1-mo. LIBOR + 3.250%)			86,692			85,268
StepStone Group LP,
Due 3/27/2025, Term Loan BC			36,076			36,076
6.234%, Due 3/27/2025, Term Loan B, (1-mo. LIBOR + 4.000%)			167,466			167,466
UFC Holdings LLC, 5.490%, Due 4/29/2026, 2019 Term Loan, (1-mo. LIBOR + 3.250%)			91,506			91,649
Valet Waste Holdings, Inc., 6.234%, Due 9/28/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 4.000%)			200,859			199,353
VFH Parent LLC, 6.044%, Due 3/1/2026, 2019 Term Loan B, (6-mo. LIBOR + 3.500%)			96,667			96,848
VICI Properties LLC, 4.272%, Due 12/20/2024, Replacement Term Loan B, (1-mo. LIBOR + 2.000%)			115,000			114,694

See accompanying notes

8

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount			Fair Value
BANK LOAN OBLIGATIONSB - 24.95% (continued)
Financial - 4.02% (continued)
Victory Capital Holdings, Inc., 5.569%, Due 7/1/2026, 2019 Term Loan B, (3-mo. LIBOR + 3.250%)		$	99,091		$	99,617
WEX Inc., 4.484%, Due 5/15/2026, Term Loan B3, (1-mo. LIBOR + 2.250%)			91,261			91,310
						3,658,793
Health Care - 2.20%
Affordable Care Holding Corp., 7.008%, Due 10/22/2022, 2015 1st Lien Term Loan, (2-mo. LIBOR + 4.750%)			42,982			41,263
Agiliti Health, Inc., 5.250%, Due 1/4/2026, Term Loan, (1-mo. LIBOR + 3.000%)			89,775			89,887
Amneal Pharmaceuticals LLC, 5.750%, Due 5/4/2025, 2018 Term Loan B, (1-mo. LIBOR + 3.500%)			158,633			146,678
Athenahealth, Inc., 7.045%, Due 2/11/2026, 2019 Term Loan B, (3-mo. LIBOR + 4.500%)			99,750			99,968
Avalign Technologies, Inc.,
Due 12/22/2025, Delayed Draw Term LoanC E			8,799			8,711
6.700%, Due 12/22/2025, 2018 Term Loan B, (3-mo. LIBOR + 4.500%)			182,312			180,489
Avantor, Inc., 5.234%, Due 11/21/2024, 2017 1st Lien Term Loan, (1-mo. LIBOR + 3.000%)			29,978			30,228
Bausch Health Cos., Inc., 5.379%, Due 6/2/2025, 2018 Term Loan B, (1-mo. LIBOR + 3.000%)			89,249			89,539
CHG Healthcare Services, Inc.,
Due 6/7/2023, 2017 1st Lien Term Loan BC			113,000			112,677
5.234%, Due 6/7/2023, 2017 1st Lien Term Loan B, (1-mo. LIBOR + 3.000%)			23,645			23,578
DaVita, Inc., 4.994%, Due 6/24/2021, Term Loan B, (3-mo. LIBOR + 2.750%)			24,718			24,691
DentalCorp Perfect Smile ULC, 5.984%, Due 6/6/2025, 1st Lien Term Loan, (1-mo. LIBOR + 3.750%)			41,970			41,428
Envision Healthcare Corp., 5.984%, Due 10/10/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 3.750%)			84,942			72,820
Gentiva Health Services, Inc., 6.000%, Due 7/2/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 3.750%)			129,922			130,571
Grifols Worldwide Operations USA, Inc., 4.426%, Due 1/31/2025, 2017 Acquisition Term Loan, (1 Week LIBOR + 2.250%)			11,098			11,121
Mallinckrodt International Finance S.A.,
5.080%, Due 9/24/2024, USD Term Loan B, (3-mo. LIBOR + 2.750%)			34,558			29,336
5.528%, Due 2/24/2025, 2018 Term Loan B, (3-mo. LIBOR + 3.000%)			49,288			41,833
MedPlast Holdings, Inc., 6.080%, Due 7/2/2025, 2018 1st Lien Term Loan, (3-mo. LIBOR + 3.750%)			57,623			57,191
National Mentor Holdings, Inc.,
6.490%, Due 3/9/2026, 2019 Term Loan B, (1-mo. LIBOR + 4.250%)			93,917			94,386
6.490%, Due 3/9/2026, 2019 Term Loan C, (1-mo. LIBOR + 4.250%)			5,848			5,877
NVA Holdings, Inc.,
4.984%, Due 2/2/2025, Term Loan B3, (1-mo. LIBOR + 2.750%)			77,673			77,592
5.734%, Due 2/2/2025, Term Loan B4, (1-mo. LIBOR + 3.500%)			6,080			6,065
Orchid Orthopedic Solutions LLC, 6.979%, Due 2/26/2026, 1st Lien Term Loan, (3-mo. LIBOR + 4.500%)			100,000			100,500
Pearl Intermediate Parent LLC,
Due 2/14/2025, 2018 Delayed Draw Term LoanC E			4,313			4,184
4.984%, Due 2/14/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 2.750%)			61,045			59,214
4.984%, Due 2/14/2025, 2018 Delayed Draw Term Loan, (1-mo. LIBOR + 2.750%)			13,752			13,339
Prospect Medical Holdings, Inc., 7.875%, Due 2/22/2024, 2018 Term Loan B, (1 Week LIBOR + 5.500%)			85,533			85,320
RegionalCare Hospital Partners Holdings, Inc., 6.769%, Due 11/17/2025, 2018 Term Loan B, (3-mo. LIBOR + 4.500%)			124,375			125,059
Universal Health Services, Inc., 3.984%, Due 10/31/2025, Term Loan B, (1-mo. LIBOR + 1.750%)			49,625			49,667
Zest Acquisition Corp., 5.830%, Due 3/7/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 3.500%)			150,473			142,573
						1,995,785
Manufacturing - 2.26%
American Bath Group LLC, 6.580%, Due 9/30/2023, 2018 Term Loan B, (3-mo. LIBOR + 4.250%)			293,655			292,196
API Technologies Corp., 6.629%, Due 5/9/2026, 2019 Term Loan B, (1-mo. LIBOR + 4.250%)			150,000			149,625

See accompanying notes

9

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount			Fair Value
BANK LOAN OBLIGATIONSB - 24.95% (continued)
Manufacturing - 2.26% (continued)
Berlin Packaging LLC,
5.230%, Due 11/7/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 3.000%)		$	74,944		$	73,508
5.240%, Due 11/7/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 3.000%)			14,087			13,817
5.330%, Due 11/7/2025, 2018 1st Lien Term Loan, (3-mo. LIBOR + 3.000%)			1,899			1,862
Brookfield WEC Holdings, Inc., 5.734%, Due 8/1/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 3.500%)			168,327			168,748
BWAY Holding Co., 5.590%, Due 4/3/2024, 2017 Term Loan B, (3-mo. LIBOR + 3.250%)			48,020			47,210
Consolidated Container Co. LLC, 4.984%, Due 5/22/2024, 2017 1st Lien Term Loan, (1-mo. LIBOR + 2.750%)			91,996			91,076
DG Investment Intermediate Holdings, Inc., 5.234%, Due 2/3/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 3.000%)			85,680			83,967
Edward Don & Co. LLC, 6.484%, Due 7/2/2025, 2018 Term Loan, (1-mo. LIBOR + 4.250%)			147,636			147,451
Emerald Performance Materials LLC, 5.734%, Due 8/1/2021, New 1st Lien Term Loan, (1-mo. LIBOR + 3.500%)			65,242			65,099
Flex Acquisition Co., Inc., 5.319%, Due 12/29/2023, 1st Lien Term Loan, (3-mo. LIBOR + 3.000%)			121,436			115,951
Forming Machining Industries Holdings LLC, 6.580%, Due 10/3/2025, Term Loan, (3-mo. LIBOR + 4.250%)			126,385			121,329
NCI Building Systems, Inc., 6.119%, Due 4/12/2025, 2018 Term Loan, (1-mo. LIBOR + 3.750%)			131,730			128,546
Netsmart Technologies, Inc.,
Due 4/19/2023, Term Loan D1C			42,210			41,736
5.984%, Due 4/19/2023, Term Loan D1, (1-mo. LIBOR + 3.750%)			42,210			41,736
Polar US Borrower LLC,
7.063%, Due 10/15/2025, 2018 1st Lien Term Loan, (3-mo. LIBOR + 4.750%)			35,904			35,141
7.080%, Due 10/15/2025, 2018 1st Lien Term Loan, (3-mo. LIBOR + 4.750%)			911			891
Sabre Industries, Inc., 6.814%, Due 4/15/2026, 2019 Term Loan B, (1-mo. LIBOR + 4.500%)			42,893			42,946
SHO Holding I Corp., 7.256%, Due 10/27/2022, Term Loan, (3-mo. LIBOR + 5.000%)			191,636			181,096
Titan Acquisition Ltd., 5.234%, Due 3/28/2025, 2018 Term Loan B, (1-mo. LIBOR + 3.000%)			88,526			83,989
Wrench Group LLC,
Due 4/12/2026, 2019 Delayed Draw Term LoanC E			30,850			30,773
6.450%, Due 4/12/2026, 2019 Term Loan B, (6 mo. LIBOR + 4.250%)			92,550			92,319
						2,051,012
Media - 0.85%
CSC Holdings LLC, 5.325%, Due 4/15/2027, 2019 Term Loan B, (1-mo. LIBOR + 3.000%)			1,248			1,252
Information Resources, Inc., 7.022%, Due 12/1/2025, 2018 1st Lien Term Loan, (3-mo. LIBOR + 4.500%)			99,500			96,142
Meredith Corp., 4.984%, Due 1/31/2025, 2018 Term Loan B, (1-mo. LIBOR + 2.750%)			78,066			78,271
NASCAR Holdings, Inc., Due 7/26/2026, Term Loan BC			120,000			120,526
Titan AcquisitionCo. New Zealand Ltd., 6.503%, Due 5/1/2026, Term Loan, (2-mo. LIBOR + 4.250%)			113,194			113,543
Univision Communications, Inc., 4.984%, Due 3/15/2024, Term Loan C5, (1-mo. LIBOR + 2.750%)			16,973			16,599
UPC Financing Partnership, 4.753%, Due 1/15/2026, USD Term Loan AR, (3-mo. LIBOR + 2.500%)			164,468			164,383
Virgin Media Bristol LLC, 4.825%, Due 1/15/2026, USD Term Loan K, (1-mo. LIBOR + 2.500%)			81,000			81,152
WeddingWire, Inc., 6.734%, Due 12/19/2025, 1st Lien Term Loan, (1-mo. LIBOR + 4.500%)			99,500			99,624
						771,492
Service - 3.50%
Academy, Ltd.,
6.230%, Due 7/1/2022, 2015 Term Loan B, (1-mo. LIBOR + 4.000%)			17,521			12,209
6.244%, Due 7/1/2022, 2015 Term Loan B, (1-mo. LIBOR + 4.000%)			9,094			6,337
ADMI Corp., 4.984%, Due 4/30/2025, 2018 Term Loan B, (1-mo. LIBOR + 2.750%)			127,801			125,751
Albany Molecular Research, Inc., 5.484%, Due 8/30/2024, 2017 1st Lien Term Loan, (1-mo. LIBOR + 3.250%)			122,813			121,216
American Airlines, Inc.,
4.325%, Due 12/14/2023, 2017 Incremental Term Loan, (1-mo. LIBOR + 2.000%)			27,000			26,848
4.061%, Due 6/27/2025, 2018 Term Loan B, (3-mo. LIBOR + 1.750%)			54,957			53,824
ATI Holdings Acquisition, Inc., 5.770%, Due 5/10/2023, 2016 Term Loan, (3-mo. LIBOR + 3.500%)			97,872			96,363
BioClinica, Inc., 6.500%, Due 10/20/2023, 1st Lien Term Loan, (1-mo. LIBOR + 4.250%)			49,690			47,702

See accompanying notes

10

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount			Fair Value
BANK LOAN OBLIGATIONSB - 24.95% (continued)
Service - 3.50% (continued)
BJ’s Wholesale Club, Inc., 5.075%, Due 2/3/2024, 2017 1st Lien Term Loan, (1-mo. LIBOR + 2.750%)		$	78,633		$	78,739
Blackhawk Network Holdings, Inc., 5.234%, Due 6/15/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 3.000%)			97,244			96,960
Boing US Holdco, Inc., 5.610%, Due 10/3/2024, 2017 1st Lien Term Loan, (1-mo. LIBOR + 3.250%)			123,129			121,436
Brand Energy & Infrastructure Services, Inc.,
6.509%, Due 6/21/2024, 2017 Term Loan, (3-mo. LIBOR + 4.250%)			23,612			22,764
6.521%, Due 6/21/2024, 2017 Term Loan, (2-mo. LIBOR + 4.250%)			20,934			20,181
6.580%, Due 6/21/2024, 2017 Term Loan, (3-mo. LIBOR + 4.250%)			228			220
California Pizza Kitchen, Inc.,
8.530%, Due 8/23/2022, 2016 Term Loan, (6-mo. LIBOR + 6.000%)			243,125			231,577
12.530%, Due 8/23/2023, 2016 2nd Lien Term Loan, (6-mo. LIBOR + 10.000%)			42,000			39,480
Camelot UK Holdco Ltd., 5.484%, Due 10/3/2023, 2017 Repriced Term Loan, (1-mo. LIBOR + 3.250%)			38,606			38,775
CareerBuilder LLC, 9.080%, Due 7/31/2023, Term Loan, (3-mo. LIBOR + 6.750%)			137,753			137,408
Digital Room Holdings, Inc., 7.234%, Due 5/8/2026, Term Loan, (1-mo. LIBOR + 5.000%)			75,000			72,844
EAB Global, Inc., 6.381%, Due 11/15/2024, 1st Lien Term Loan, (3-mo. LIBOR + 3.750%)			44,835			44,415
Hoya Midco LLC, 5.734%, Due 6/30/2024, 2017 1st Lien Term Loan, (1-mo. LIBOR + 3.500%)			80,749			79,941
Kingpin Intermediate Holdings LLC, 5.730%, Due 7/3/2024, 2018 Term Loan B, (1-mo. LIBOR + 3.500%)			123,814			123,712
Lakeland Tours LLC, 6.402%, Due 12/15/2024, 2017 1st Lien Term Loan B, (3-mo. LIBOR + 4.000%)			123,438			124,055
Marriott Ownership Resorts, Inc., 4.484%, Due 8/29/2025, 2018 Term Loan B, (1-mo. LIBOR + 2.250%)			13,394			13,422
Midas Intermediate Holdco II LLC, 5.080%, Due 8/18/2021, Incremental Term Loan B, (3-mo. LIBOR + 2.750%)			48,660			47,626
NMSC Holdings, Inc., 7.256%, Due 4/19/2023, 1st Lien Term Loan, (3-mo. LIBOR + 5.000%)			250,000			251,250
Pre-Paid Legal Services, Inc., 5.479%, Due 5/1/2025, 2018 1st Lien Term Loan, (3-mo. LIBOR + 3.250%)			67,097			66,929
Quidditch Acquisition, Inc.,
Due 3/14/2025, 2018 Term Loan BC			50,000			50,750
9.234%, Due 3/14/2025, 2018 Term Loan B, (1-mo. LIBOR + 7.000%)			108,625			110,254
Realogy Group LLC, 4.522%, Due 2/8/2025, 2018 Term Loan B, (1-mo. LIBOR + 2.250%)			100,276			95,312
Red Ventures LLC, 5.234%, Due 11/8/2024, 2018 Term Loan B, (1-mo. LIBOR + 3.000%)			121,915			122,239
Rentpath, Inc., 6.990%, Due 12/17/2021, 2017 Term Loan, (1-mo. LIBOR + 4.750%)			81,745			41,553
Spin Holdco, Inc., 5.272%, Due 11/14/2022, 2017 Term Loan B, (3-mo. LIBOR + 3.250%)			86,567			85,377
Syneos Health, Inc., 4.234%, Due 8/1/2024, 2018 Term Loan B, (1-mo. LIBOR + 2.000%)			23,251			23,185
Tribune Media Co., 5.234%, Due 12/27/2020, Term Loan, (1-mo. LIBOR + 3.000%)			4,219			4,214
TruGreen Ltd. Partnership, 5.984%, Due 3/19/2026, 2019 Term Loan, (1-mo. LIBOR + 3.750%)			131,491			131,819
USIC Holdings, Inc., 5.234%, Due 12/8/2023, 2017 Term Loan B, (1-mo. LIBOR + 3.000%)			10,589			10,506
Vestcom Parent Holdings, Inc.,
6.234%, Due 12/19/2023, 2016 1st Lien Term Loan, (1-mo. LIBOR + 4.000%)			84,402			79,338
8.250%, Due 12/19/2023, 2016 1st Lien Term Loan, (3-mo. PRIME + 3.000%)			14			14
William Morris Endeavor Entertainment LLC, 4.990%, Due 5/18/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 2.750%)			83,816			81,448
World Triathlon Corp., 6.484%, Due 6/26/2021, Term Loan, (1-mo. LIBOR + 4.250%)			244,216			244,216
						3,182,209
Technology - 2.52%
Almonde, Inc.,
5.734%, Due 6/13/2024, USD 1st Lien Term Loan, (1-mo. LIBOR + 3.500%)			42,420			41,588
AqGen Ascensus, Inc., 6.200%, Due 12/3/2022, 2017 Repriced Term Loan, (6-mo. LIBOR + 4.000%)			87,435			87,654
Avast Software B.V., 4.580%, Due 9/30/2023, 2018 USD Term Loan B, (3-mo. LIBOR + 2.250%)			72,218			72,387
Capri Finance LLC, 5.506%, Due 11/1/2024, USD 2017 1st Lien Term Loan, (3-mo. LIBOR + 3.250%)			85,538			83,560
Compuware Corp., 6.234%, Due 8/22/2025, 2018 Term Loan B, (1-mo. LIBOR + 4.000%)			69,575			69,749

See accompanying notes

11

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount			Fair Value
BANK LOAN OBLIGATIONSB - 24.95% (continued)
Technology - 2.52% (continued)
Corel Corp., 7.320%, Due 6/26/2026, 2019 Term Loan, (3-mo. LIBOR + 5.000%)		$	125,000		$	120,416
Dell International LLC, 4.240%, Due 9/7/2023, 2017 Term Loan B, (1-mo. LIBOR + 2.000%)			153,654			154,015
DiscoverOrg LLC, 6.734%, Due 2/2/2026, 2019 1st Lien Term Loan, (1-mo. LIBOR + 4.500%)			99,750			99,459
Dynatrace LLC, 4.984%, Due 8/22/2025, 2018 1st Lien Term Loan, (1-mo. LIBOR + 2.750%)			86,050			86,050
GGC Aperio Holdings LP, 7.330%, Due 10/25/2024, Term Loan, (3-mo. LIBOR + 5.000%)D I			168,438			167,646
GrafTech Finance, Inc., 5.734%, Due 2/12/2025, 2018 Term Loan B, (1-mo. LIBOR + 3.500%)			67,828			66,811
MA FinanceCo. LLC, 4.734%, Due 6/21/2024, USD Term Loan B3, (1-mo. LIBOR + 2.500%)			10,464			10,376
MH Sub I LLC, 5.984%, Due 9/13/2024, 2017 1st Lien Term Loan, (1-mo. LIBOR + 3.750%)			130,792			129,975
Microchip Technology, Inc., 4.240%, Due 5/29/2025, 2018 Term Loan B, (1-mo. LIBOR + 2.000%)			91,370			91,256
Omnitracs, Inc., 5.099%, Due 3/21/2025, 2018 Term Loan B, (3-mo. LIBOR + 2.750%)			108,222			106,761
Plantronics, Inc., 4.734%, Due 7/2/2025, 2018 Term Loan B, (1-mo. LIBOR + 2.500%)			76,824			76,805
Riverbed Technology, Inc., 5.490%, Due 4/24/2022, 2016 Term Loan, (1-mo. LIBOR + 3.250%)			53,948			45,489
Seattle Spinco, Inc., 4.734%, Due 6/21/2024, USD Term Loan B3, (1-mo. LIBOR + 2.500%)			70,663			70,074
Sophia LP, 5.580%, Due 9/30/2022, 2017 Term Loan B, (3-mo. LIBOR + 3.250%)			87,755			87,737
SS&C Technologies Holdings Europe S.a.r.l., 4.484%, Due 4/16/2025, 2018 Term Loan B4, (1-mo. LIBOR + 2.250%)			27,515			27,498
SS&C Technologies, Inc.,
4.484%, Due 4/16/2025, 2018 Term Loan B3, (1-mo. LIBOR + 2.250%)			40,414			40,388
4.484%, Due 4/16/2025, 2018 Term Loan B5, (1-mo. LIBOR + 2.250%)			20,013			20,007
Triple Point Technology, Inc., 6.580%, Due 7/10/2020, 1st Lien Term Loan, (3-mo. LIBOR + 4.250%)			32,411			30,872
Ultimate Software Group, Inc., 6.080%, Due 5/4/2026, Term Loan B, (3-mo. LIBOR + 3.750%)			100,000			100,734
Verifone Systems, Inc., 6.520%, Due 8/20/2025, 2018 1st Lien Term Loan, (3-mo. LIBOR + 4.000%)			99,250			96,490
Verscend Holding Corp., 6.734%, Due 8/27/2025, 2018 Term Loan B, (1-mo. LIBOR + 4.500%)			121,085			121,577
Weld North Education LLC, 6.580%, Due 2/7/2025, Term Loan B, (3-mo. LIBOR + 4.250%)			99,496			99,496
Western Digital Corp., 4.012%, Due 4/29/2023, 2018 Term Loan B4, (3-mo. LIBOR + 1.750%)			87,337			86,572
						2,291,442
Telecommunications - 1.69%
Altice France S.A., 6.325%, Due 8/14/2026, 2018 Term Loan B13, (1-mo. LIBOR + 4.000%)			99,250			98,692
Anastasia Parent LLC, 5.984%, Due 8/11/2025, 2018 Term Loan B, (1-mo. LIBOR + 3.750%)			55,580			44,742
Avaya, Inc., 6.575%, Due 12/15/2024, 2018 Term Loan B, (1-mo. LIBOR + 4.250%)			131,105			125,984
Charter Communications Operating LLC, 4.330%, Due 4/30/2025, 2017 Term Loan B, (3-mo. LIBOR + 2.000%)			123,125			123,307
CommScope, Inc., 5.484%, Due 4/6/2026, 2019 Term Loan B, (1-mo. LIBOR + 3.250%)			100,000			100,025
Coral-US Co-Borrower LLC,
Due 1/30/2026, Term Loan B4C			91,000			91,500
5.484%, Due 1/30/2026, Term Loan B4, (1-mo. LIBOR + 3.250%)			41,109			41,335
Flexential Intermediate Corp., 5.830%, Due 8/1/2024, 2017 1st Lien Term Loan, (3-mo. LIBOR + 3.500%)			86,995			79,746
GoodRx, Inc., 5.064%, Due 10/10/2025, 1st Lien Term Loan, (1-mo. LIBOR + 2.750%)			98,399			98,055
GTT Communications, Inc., 4.980%, Due 5/31/2025, 2018 USD Term Loan B, (1-mo. LIBOR + 2.750%)			30,690			26,848
Intelsat Jackson Holdings S.A., 5.991%, Due 11/27/2023, 2017 Term Loan B3, (1-mo. LIBOR + 3.750%)			82,000			82,175
Level 3 Financing, Inc., 4.484%, Due 2/22/2024, 2017 Term Loan B, (1-mo. LIBOR + 2.250%)			135,000			135,057
Merrill Communications LLC, 7.506%, Due 6/1/2022, 2015 Term Loan, (3-mo. LIBOR + 5.250%)			35,726			35,838
Mission Broadcasting, Inc., 4.480%, Due 1/17/2024, 2018 Term Loan B3, (1-mo. LIBOR + 2.250%)			13,687			13,619
NeuStar, Inc., 5.734%, Due 8/8/2024, 2018 Term Loan B4, (1-mo. LIBOR + 3.500%)			84,010			81,543
Nexstar Broadcasting, Inc., 4.491%, Due 1/17/2024, 2018 Term Loan B3, (1-mo. LIBOR + 2.250%)			68,709			68,365
Speedcast International Ltd., 5.080%, Due 5/15/2025, Term Loan B, (3-mo. LIBOR + 2.750%)			92,821			85,395
Sprint Communications, Inc.,
Due 2/2/2024, 1st Lien Term Loan BC			41,000			40,887
4.750%, Due 2/2/2024, 1st Lien Term Loan B, (1-mo. LIBOR + 2.500%)			595			594
5.250%, Due 2/2/2024, 2018 Term Loan B, (1-mo. LIBOR + 3.000%)			91,540			91,454
Syniverse Holdings, Inc., 7.325%, Due 3/9/2023, 2018 1st Lien Term Loan, (1-mo. LIBOR + 5.000%)			78,627			71,865
						1,537,026

See accompanying notes

12

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount			Fair Value
BANK LOAN OBLIGATIONSB - 24.95% (continued)
Transportation - 0.24%
Dynasty Acquisition Co., Inc., 6.330%, Due 4/6/2026, 2019 Term Loan B1, (3-mo. LIBOR + 4.000%)		$	65,035		$	65,396
XPO Logistics, Inc., 4.234%, Due 2/24/2025, 2018 Term Loan B, (1-mo. LIBOR + 2.000%)			149,000			149,103
						214,499
Utilities - 0.44%
Calpine Corp.,
4.830%, Due 1/15/2024, Term Loan B5, (3-mo. LIBOR + 2.500%)			110,560			110,576
5.080%, Due 4/5/2026, Term Loan B9, (3-mo. LIBOR + 2.750%)			15,000			15,000
Eastern Power LLC, 5.984%, Due 10/2/2023, Term Loan B, (1-mo. LIBOR + 3.750%)			97,910			98,125
Nordam Group, Inc.,
7.875%, Due 4/3/2026, Term Loan B, (1-mo. LIBOR + 5.500%)			9,848			9,823
7.875%, Due 4/3/2026, Term Loan B, (6-mo. LIBOR + 5.500%)			116,902			116,610
Vistra Energy Corp.,
4.234%, Due 12/31/2025, 1st Lien Term Loan B3, (1-mo. LIBOR + 2.000%)			29,557			29,599
4.314%, Due 12/31/2025, 1st Lien Term Loan B3, (1-mo. LIBOR + 2.000%)			21,114			21,144
4.330%, Due 12/31/2025, 1st Lien Term Loan B3, (3-mo. LIBOR + 2.000%)			1,687			1,689
						402,566
Total Bank Loan Obligations (Cost $22,933,548)						22,677,833
CORPORATE OBLIGATIONS - 57.82%
Basic Materials - 1.86%
Ashland LLC, 4.750%, Due 8/15/2022			175,000			181,816
CF Industries, Inc., 3.450%, Due 6/1/2023			200,000			202,000
Freeport-McMoRan, Inc., 4.550%, Due 11/14/2024			925,000			948,310
PQ Corp., 6.750%, Due 11/15/2022F			350,000			361,813
						1,693,939
Communications - 12.99%
AMC Networks, Inc., 5.000%, Due 4/1/2024			250,000			256,487
Block Communications, Inc., 6.875%, Due 2/15/2025F			300,000			313,500
Cablevision Systems Corp., 5.875%, Due 9/15/2022			450,000			477,562
CCO Holdings LLC / CCO Holdings Capital Corp., 5.375%, Due 5/1/2025F			1,150,000			1,187,375
CenturyLink, Inc.,
5.800%, Due 3/15/2022, Series T			200,000			208,000
6.750%, Due 12/1/2023, Series W			250,000			269,787
7.500%, Due 4/1/2024, Series Y			450,000			492,610
Clear Channel Worldwide Holdings, Inc.,
6.500%, Due 11/15/2022, Series B			450,000			459,450
9.250%, Due 2/15/2024F			125,000			135,625
CommScope Technologies LLC, 6.000%, Due 6/15/2025F			100,000			91,000
CommScope, Inc., 6.000%, Due 3/1/2026F			225,000			227,464
CSC Holdings LLC,
5.125%, Due 12/15/2021, Series 144F			250,000			250,000
5.500%, Due 5/15/2026F			250,000			261,250
DISH DBS Corp.,
6.750%, Due 6/1/2021			150,000			156,143
5.875%, Due 7/15/2022			525,000			530,654
5.000%, Due 3/15/2023			100,000			96,500
EIG Investors Corp., 10.875%, Due 2/1/2024			150,000			156,938
Frontier Communications Corp., 8.500%, Due 4/1/2026F			225,000			219,870
iHeartCommunications, Inc., 8.375%, Due 5/1/2027			100,000			105,250
Lamar Media Corp., 5.000%, Due 5/1/2023			250,000			253,988
Netflix, Inc., 5.750%, Due 3/1/2024			250,000			270,625
Nexstar Broadcasting, Inc., 5.625%, Due 8/1/2024F			200,000			207,750
Plantronics, Inc., 5.500%, Due 5/31/2023F			500,000			508,750
Salem Media Group, Inc., 6.750%, Due 6/1/2024F			175,000			154,000

See accompanying notes

13

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 57.82% (continued)
Communications - 12.99% (continued)
Sinclair Television Group, Inc., 5.625%, Due 8/1/2024F		$	400,000		$	411,380
Sirius XM Radio, Inc., 5.375%, Due 4/15/2025F			900,000			934,875
Sprint Communications, Inc., 6.000%, Due 11/15/2022			575,000			610,937
Sprint Corp.,
7.250%, Due 9/15/2021			700,000			751,625
7.875%, Due 9/15/2023			250,000			278,750
T-Mobile USA, Inc.,
6.500%, Due 1/15/2024			175,000			181,344
6.000%, Due 4/15/2024			200,000			208,752
5.125%, Due 4/15/2025			150,000			155,250
TEGNA, Inc., 5.500%, Due 9/15/2024F			300,000			309,375
Townsquare Media, Inc., 6.500%, Due 4/1/2023F			225,000			221,625
Univision Communications, Inc., 5.125%, Due 5/15/2023F			200,000			198,560
Zayo Group LLC / Zayo Capital, Inc., 6.375%, Due 5/15/2025			250,000			256,288
						11,809,339
Consumer, Cyclical - 6.58%
AMC Entertainment Holdings, Inc., 5.750%, Due 6/15/2025			250,000			236,169
Caesars Resort Collection LLC / CRC Finco, Inc., 5.250%, Due 10/15/2025F			125,000			124,725
Churchill Downs, Inc., 5.500%, Due 4/1/2027F			225,000			235,758
Cinemark USA, Inc., 4.875%, Due 6/1/2023			200,000			202,524
Eldorado Resorts, Inc., 6.000%, Due 4/1/2025			150,000			158,063
H&E Equipment Services, Inc., 5.625%, Due 9/1/2025			150,000			154,125
Hanesbrands, Inc., 4.625%, Due 5/15/2024F			250,000			259,428
Jack Ohio Finance LLC / Jack Ohio Finance Corp., 10.250%, Due 11/15/2022F			200,000			213,000
KGA Escrow LLC, 7.500%, Due 8/15/2023F			300,000			312,750
Lennar Corp., 4.750%, Due 5/30/2025			575,000			600,875
MGM Resorts International, 5.750%, Due 6/15/2025			950,000			1,026,902
QVC, Inc., 4.850%, Due 4/1/2024			275,000			283,640
Scientific Games International, Inc., 10.000%, Due 12/1/2022			118,000			123,017
Tempur Sealy International, Inc., 5.625%, Due 10/15/2023			400,000			411,040
United Airlines Holdings, Inc., 4.875%, Due 1/15/2025			500,000			522,500
Williams Scotsman International, Inc., 7.875%, Due 12/15/2022F			400,000			419,000
Wyndham Destinations, Inc., 5.400%, Due 4/1/2024			450,000			473,625
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp., 4.250%, Due 5/30/2023F			225,000			226,710
						5,983,851
Consumer, Non-Cyclical - 9.23%
Acadia Healthcare Co., Inc., 6.500%, Due 3/1/2024			225,000			230,625
Albertsons Companies LLC / Safeway, Inc. / New Albertsons LP / Albertson’s LLC, 6.625%, Due 6/15/2024			150,000			156,375
Avantor, Inc., 9.000%, Due 10/1/2025F			100,000			110,813
Cardtronics, Inc. / Cardtronics USA, Inc., 5.500%, Due 5/1/2025F			300,000			297,375
Centene Corp.,
5.625%, Due 2/15/2021			300,000			304,269
4.750%, Due 1/15/2025			200,000			205,750
CHS/Community Health Systems, Inc.,
8.000%, Due 11/15/2019			200,000			197,500
6.250%, Due 3/31/2023			350,000			335,125
8.625%, Due 1/15/2024F			250,000			250,000
DaVita, Inc., 5.125%, Due 7/15/2024			350,000			349,657
HCA, Inc.,
5.875%, Due 5/1/2023			725,000			793,875
5.500%, Due 10/15/2024F			325,000			319,312
8.750%, Due 11/1/2024F			150,000			161,940
Kronos Acquisition Holdings, Inc., 9.000%, Due 8/15/2023F			200,000			172,500
MEDNAX, Inc., 5.250%, Due 12/1/2023F			225,000			224,611
MPH Acquisition Holdings LLC, 7.125%, Due 6/1/2024F			50,000			48,498

See accompanying notes

14

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 57.82% (continued)
Consumer, Non-Cyclical - 9.23% (continued)
Nielsen Finance LLC / Nielsen Finance Co., 5.000%, Due 4/15/2022F		$	600,000		$	599,070
Polaris Intermediate Corp., 8.500%, Due 12/1/2022, PIK (in-kind rate 8.500%)F			150,000			138,750
Prestige Brands, Inc., 5.375%, Due 12/15/2021F			350,000			351,750
Prime Security Services Borrower LLC / Prime Finance, Inc.,
9.250%, Due 5/15/2023F			292,000			306,783
5.250%, Due 4/15/2024F			150,000			153,003
RegionalCare Hospital Partners Holdings, Inc., 8.250%, Due 5/1/2023F			225,000			239,558
Select Medical Corp., 6.375%, Due 6/1/2021			250,000			250,313
Tenet Healthcare Corp.,
8.125%, Due 4/1/2022			100,000			106,875
6.750%, Due 6/15/2023			350,000			359,187
7.000%, Due 8/1/2025			200,000			199,500
6.250%, Due 2/1/2027F			950,000			986,100
Universal Health Services, Inc., 4.750%, Due 8/1/2022F			350,000			354,375
WellCare Health Plans, Inc., 5.250%, Due 4/1/2025			175,000			181,599
						8,385,088
Energy - 7.38%
Antero Resources Corp., 5.125%, Due 12/1/2022			300,000			286,500
Archrock Partners LP / Archrock Partners Finance Corp., 6.000%, Due 10/1/2022			250,000			253,437
Ascent Resources Utica Holdings LLC / ARU Finance Corp., 10.000%, Due 4/1/2022F			350,000			345,625
Blue Racer Midstream LLC / Blue Racer Finance Corp., 6.125%, Due 11/15/2022F			100,000			100,500
Cheniere Energy Partners LP, 5.625%, Due 10/1/2026			250,000			264,375
Chesapeake Energy Corp.,
8.000%, Due 1/15/2025			100,000			85,500
8.000%, Due 6/15/2027			175,000			140,000
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp., 5.625%, Due 5/1/2027F			200,000			198,020
DCP Midstream Operating LP, 5.375%, Due 7/15/2025			400,000			424,508
Denbury Resources, Inc., 9.000%, Due 5/15/2021F			125,000			117,813
Diamondback Energy, Inc., 5.375%, Due 5/31/2025			50,000			52,500
Energy Transfer Operating LP, 5.250%, Due 4/15/2029			300,000			335,247
Genesis Energy LP / Genesis Energy Finance Corp., 5.625%, Due 6/15/2024			175,000			171,937
Gulfport Energy Corp., 6.625%, Due 5/1/2023			250,000			209,375
Hess Infrastructure Partners LP / Hess Infrastructure Partners Finance Corp., 5.625%, Due 2/15/2026F			400,000			415,875
Hilcorp Energy I LP / Hilcorp Finance Co., 5.000%, Due 12/1/2024F			225,000			215,437
Nabors Industries, Inc., 5.500%, Due 1/15/2023			175,000			163,625
NGL Energy Partners LP / NGL Energy Finance Corp., 7.500%, Due 11/1/2023			100,000			103,250
Oasis Petroleum, Inc., 6.875%, Due 1/15/2023			250,000			245,937
Oceaneering International, Inc., 4.650%, Due 11/15/2024			150,000			144,282
QEP Resources, Inc., 5.375%, Due 10/1/2022			225,000			208,687
Range Resources Corp., 5.875%, Due 7/1/2022			400,000			376,000
SemGroup Corp. / Rose Rock Finance Corp.,
5.625%, Due 7/15/2022			125,000			122,969
5.625%, Due 11/15/2023			125,000			120,313
Summit Midstream Holdings LLC / Summit Midstream Finance Corp., 5.500%, Due 8/15/2022			400,000			384,000
Sunoco LP / Sunoco Finance Corp., 4.875%, Due 1/15/2023, Series WI			250,000			254,300
Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp., 5.500%, Due 9/15/2024F			100,000			101,250
Targa Resources Partners LP / Targa Resources Partners Finance Corp.,
5.250%, Due 5/1/2023			150,000			151,688
5.125%, Due 2/1/2025			100,000			103,000
W&T Offshore, Inc., 9.750%, Due 11/1/2023			150,000			143,625
Whiting Petroleum Corp., 6.250%, Due 4/1/2023			300,000			293,280
WPX Energy, Inc., 5.250%, Due 9/15/2024			175,000			175,875
						6,708,730
Financial - 8.78%
Acrisure LLC / Acrisure Finance, Inc., 8.125%, Due 2/15/2024F			300,000			320,280

See accompanying notes

15

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 57.82% (continued)
Financial - 8.78% (continued)
Allied Universal Holdco LLC,
6.625%, Due 7/15/2026F		$	150,000		$	156,750
9.750%, Due 7/15/2027F			125,000			130,469
Ally Financial, Inc., 4.125%, Due 2/13/2022			50,000			51,485
CIT Group, Inc.,
5.000%, Due 8/15/2022			300,000			318,000
4.750%, Due 2/16/2024			150,000			159,187
Credit Acceptance Corp.,
6.125%, Due 2/15/2021			200,000			200,500
7.375%, Due 3/15/2023			350,000			364,000
Genworth Holdings, Inc., 4.900%, Due 8/15/2023, Series .			225,000			209,250
Greystar Real Estate Partners LLC, 5.750%, Due 12/1/2025F			200,000			204,500
HUB International Ltd., 7.000%, Due 5/1/2026F			150,000			152,531
Icahn Enterprises LP / Icahn Enterprises Finance Corp.,
6.250%, Due 2/1/2022			400,000			411,048
6.375%, Due 12/15/2025			625,000			653,125
iStar, Inc., 5.250%, Due 9/15/2022			550,000			558,893
Jefferies Finance LLC / JFIN Co-Issuer Corp., 6.250%, Due 6/3/2026F			150,000			152,738
Kennedy-Wilson, Inc., 5.875%, Due 4/1/2024			300,000			306,306
Ladder Capital Finance Holdings LLLP / Ladder Capital Finance Corp., 5.250%, Due 10/1/2025F			100,000			102,500
MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer, Inc., 5.625%, Due 5/1/2024			250,000			266,875
Nationstar Mortgage Holdings, Inc., 8.125%, Due 7/15/2023F			250,000			259,687
Navient Corp., 6.125%, Due 3/25/2024			1,075,000			1,130,212
Newmark Group, Inc., 6.125%, Due 11/15/2023			225,000			241,598
Oxford Finance LLC / Oxford Finance Co-Issuer II, Inc., 6.375%, Due 12/15/2022F			175,000			180,250
SBA Communications Corp., 4.875%, Due 9/1/2024			250,000			257,155
Springleaf Finance Corp.,
5.625%, Due 3/15/2023			100,000			107,000
6.125%, Due 3/15/2024			100,000			108,344
7.125%, Due 3/15/2026			550,000			617,719
Starwood Property Trust, Inc., 5.000%, Due 12/15/2021			350,000			361,375
						7,981,777
Industrial - 6.88%
ADT Security Corp., 4.125%, Due 6/15/2023			525,000			527,625
Arconic, Inc., 5.125%, Due 10/1/2024			400,000			426,516
Ball Corp., 5.000%, Due 3/15/2022			300,000			314,190
BBA US Holdings, Inc., 5.375%, Due 5/1/2026F			150,000			157,125
Berry Global, Inc.,
5.500%, Due 5/15/2022			200,000			202,250
5.625%, Due 7/15/2027F			150,000			157,688
Builders FirstSource, Inc., 6.750%, Due 6/1/2027F			250,000			263,125
CEMEX Finance LLC, 6.000%, Due 4/1/2024F			250,000			256,562
Energizer Holdings, Inc.,
5.500%, Due 6/15/2025F			150,000			152,297
7.750%, Due 1/15/2027F			150,000			162,857
Fortress Transportation & Infrastructure Investors LLC,
6.750%, Due 3/15/2022F			250,000			260,000
6.500%, Due 10/1/2025F			100,000			103,625
Ingram Micro, Inc.,
5.000%, Due 8/10/2022			275,000			280,397
5.450%, Due 12/15/2024			175,000			180,075
LABL Escrow Issuer LLC, 6.750%, Due 7/15/2026F			25,000			25,500
Mauser Packaging Solutions Holding Co.,
5.500%, Due 4/15/2024F			250,000			249,612
7.250%, Due 4/15/2025F			100,000			94,750
Owens-Brockway Glass Container, Inc., 5.375%, Due 1/15/2025F			275,000			286,000

See accompanying notes

16

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 57.82% (continued)
Industrial - 6.88% (continued)
Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu, 5.125%, Due 7/15/2023F		$	850,000		$	864,875
Standard Industries, Inc., 5.375%, Due 11/15/2024F			250,000			256,247
Stericycle, Inc., 5.375%, Due 7/15/2024F			175,000			182,759
TransDigm, Inc., 6.000%, Due 7/15/2022			550,000			555,665
XPO Logistics, Inc.,
6.125%, Due 9/1/2023F			125,000			128,750
6.750%, Due 8/15/2024F			150,000			159,893
						6,248,383
Technology - 2.82%
Dell International LLC / EMC Corp., 7.125%, Due 6/15/2024F			800,000			846,003
NCR Corp., 5.000%, Due 7/15/2022			350,000			351,207
Pitney Bowes, Inc., 4.625%, Due 3/15/2024			300,000			270,000
Solera LLC / Solera Finance, Inc., 10.500%, Due 3/1/2024F			500,000			535,475
Xerox Corp.,
4.500%, Due 5/15/2021			300,000			306,696
4.125%, Due 3/15/2023			250,000			250,625
						2,560,006
Utilities - 1.30%
AES Corp.,
4.500%, Due 3/15/2023			200,000			205,000
5.500%, Due 4/15/2025			150,000			155,625
AmeriGas Partners LP / AmeriGas Finance Corp., 5.625%, Due 5/20/2024			100,000			106,125
Calpine Corp., 5.875%, Due 1/15/2024F			550,000			562,375
Clearway Energy Operating LLC, 5.375%, Due 8/15/2024			150,000			153,938
						1,183,063
Total Corporate Obligations (Cost $51,914,193)						52,554,176
FOREIGN CORPORATE OBLIGATIONS - 11.98%
Basic Materials - 1.05%
Alcoa Nederland Holding B.V., 6.750%, Due 9/30/2024F			250,000			262,500
Cascades, Inc., 5.750%, Due 7/15/2023F			450,000			456,323
FMG Resources Pty Ltd., 5.125%, Due 5/15/2024F			150,000			156,000
NOVA Chemicals Corp., 4.875%, Due 6/1/2024F			75,000			77,265
						952,088
Communications - 2.82%
Altice Financing S.A., 6.625%, Due 2/15/2023F			300,000			309,375
Altice France S.A., 6.250%, Due 5/15/2024F			200,000			206,500
Altice Luxembourg S.A.,
7.750%, Due 5/15/2022F			200,000			204,250
10.500%, Due 5/15/2027F			225,000			238,219
Intelsat Jackson Holdings S.A., 9.500%, Due 9/30/2022F			250,000			291,875
Telecom Italia SpA, 5.303%, Due 5/30/2024F			225,000			237,656
Videotron Ltd., 5.000%, Due 7/15/2022			600,000			626,820
VTR Finance B.V., 6.875%, Due 1/15/2024F			435,000			449,137
						2,563,832
Consumer, Cyclical - 1.84%
BC ULC / New Red Finance, Inc., 5.000%, Due 10/15/2025F			400,000			408,000
Fiat Chrysler Automobiles N.V., 5.250%, Due 4/15/2023			300,000			315,000
International Game Technology PLC, 6.500%, Due 2/15/2025F			300,000			328,500
Mclaren Finance PLC, 5.750%, Due 8/1/2022F			200,000			187,176
Panther BF Aggregator 2 LP / Panther Finance Co., Inc.,
6.250%, Due 5/15/2026F			125,000			129,338
8.500%, Due 5/15/2027F			100,000			101,625

See accompanying notes

17

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount			Fair Value
FOREIGN CORPORATE OBLIGATIONS - 11.98% (continued)
Consumer, Cyclical - 1.84% (continued)
Viking Cruises Ltd., 6.250%, Due 5/15/2025F		$	200,000		$	206,000
						1,675,639
Consumer, Non-Cyclical - 2.33%
Bausch Health Cos., Inc.,
7.000%, Due 3/15/2024F			700,000			738,500
6.125%, Due 4/15/2025F			625,000			642,969
Clearwater Seafoods, Inc., 6.875%, Due 5/1/2025F			200,000			202,500
Endo Dac / Endo Finance LLC / Endo Finco, Inc., 5.875%, Due 10/15/2024F			250,000			220,625
Mallinckrodt International Finance S.A. / Mallinckrodt CB LLC,
4.875%, Due 4/15/2020F			100,000			92,750
5.625%, Due 10/15/2023F			350,000			221,270
						2,118,614
Energy - 0.31%
Transocean Pontus Ltd., 6.125%, Due 8/1/2025F			118,125			121,669
Transocean, Inc., 9.000%, Due 7/15/2023F			150,000			157,831
						279,500
Financial - 0.57%
goeasy Ltd., 7.875%, Due 11/1/2022F			500,000			521,250
Industrial - 2.17%
ARD Securities Finance SARL, 8.750%, Due 1/31/2023, PIK (in-kind rate 8.750%)F			275,000			283,937
Ardagh Packaging Finance PLC, 4.625%, Due 5/15/2023F			450,000			461,250
Ardagh Packaging Finance PLC, 7.250%, Due 5/15/2024F			200,000			211,104
Bombardier, Inc.,
6.000%, Due 10/15/2022F			325,000			324,594
7.500%, Due 12/1/2024F			250,000			257,737
7.500%, Due 3/15/2025F			250,000			254,219
Norbord, Inc., 5.750%, Due 7/15/2027F			100,000			101,000
Trivium Packaging Finance B.V., 5.500%, Due 8/15/2026F			75,000			77,344
						1,971,185
Technology - 0.89%
Open Text Corp.,
5.625%, Due 1/15/2023F			250,000			255,550
5.875%, Due 6/1/2026F			200,000			213,442
Seagate HDD Cayman, 4.750%, Due 6/1/2023			325,000			336,448
						805,440
Total Foreign Corporate Obligations (Cost $10,842,726)						10,887,548
FOREIGN SOVEREIGN OBLIGATIONS - 0.16% (Cost $150,000)
Ardagh Packaging Finance PLC, 5.250%, Due 8/15/2027			150,000			150,188
	Shares
SHORT-TERM INVESTMENTS - 2.80% (Cost $2,542,399)
Investment Companies - 2.80%
American Beacon U.S. Government Money Market Select Fund, Select Class, 2.28%G H			2,542,399			2,542,399
TOTAL INVESTMENTS - 97.71% (Cost $88,387,481)						88,816,149
OTHER ASSETS, NET OF LIABILITIES - 2.29%						2,078,375
TOTAL NET ASSETS - 100.00%					$	90,894,524
Percentages are stated as a percent of net assets.

See accompanying notes

18

American Beacon Crescent Short Duration High Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

^A Non-income producing security.

^B Bank loan obligations, unless otherwise stated, carry a floating rate of interest. The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

^C Coupon rates may not be available for bank loans that are unsettled and/or unfunded as of July 31, 2019.

^D Value was determined using significant unobservable inputs.

^E Unfunded Loan Commitment. At period end, the amount of unfunded loan commitments was $43,962 or 0.05% of net assets. Of this amount, $8,799 relates to Avalign Technologies, Inc., $4,313 relates to Pearl Intermediate Parent LLC, and $30,850 relates to Wrench Group LLC.

^F Security exempt from registration under the Securities Act of 1933. These securities may be resold to qualified institutional buyers pursuant to Rule 144A. At the period end, the value of these securities amounted to $31,112,669 or 34.23% of net assets. The Fund has no right to demand registration of these securities.

^G The Fund is affiliated by having the same investment advisor.

^H 7-day yield.

^I Fair valued pursuant to procedures approved by the Board of Trustees. At period end, the value of these securities amounted to $167,646 or 0.18% of net assets.

LIBOR - London Interbank Offered Rate.

LLC - Limited Liability Company.

LLLP - Limited Liability Limited Partnership.

LP - Limited Partnership.

PIK - Payment in Kind.

PLC - Public Limited Company.

PRIME - A rate, charged by banks, based on the U.S. Federal Funds rate.

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of July 31, 2019, the investments were classified as described below:

Crescent Short Duration High Income Fund	Level 1		Level 2		Level 3			Total
Assets
Common Stocks	$	3,550	$	-	$	-		$	3,550
Warrants		455		-		-			455
Bank Loan Obligations(1)		-		22,510,187		167,646	(2)		22,677,833
Corporate Obligations		-		52,554,176		-			52,554,176
Foreign Corporate Obligations		-		10,887,548		-			10,887,548
Foreign Sovereign Obligations		-		150,188		-			150,188
Short-Term Investments		2,542,399		-		-			2,542,399
Total Investments in Securities - Assets	$	2,546,404	$	86,102,099	$	167,646		$	88,816,149

⁽¹⁾  Unfunded loan commitments represent $43,962 at year end.

⁽²⁾  Includes investment held in the Fund’s Portfolio with $0 fair value.

U.S. GAAP requires transfers between all levels to/from level 3 be disclosed. During the period ended July 31, 2019, there were no transfers into or out of Level 3.

The following table is a reconciliation of Level 3 assets within the Fund for which significant unobservable inputs were used to determine fair value. Transfers in or out of Level 3 represent the ending value of any security or instrument where a change in the level has occurred from the beginning to the end of the period:

Security Type	Balance as of 1/31/2019	Purchases	Sales	Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Transfer into Level 3		Transfer out of Level 3		Balance as of 7/31/2019			Unrealized Appreciation (Depreciation) at Period end**
Bank Loan Obligations	$170,888	$            -	$6,564	$	22	$	33	$	3,267	$	-	$	-	$	167,646	(1)	$	(7,142	)

** Change in unrealized appreciation (depreciation) attributable to Level 3 securities held at period end. This balance is included in the change in unrealized appreciation (depreciation) on the Statement of Operations.

⁽¹⁾  Includes investment held in the Fund’s Portfolio with $0 fair value.

A bank loan obligation was fair valued using a private valuation report from a third party valuation service provider where the market value of the bank loan obligation was $167,646. It has been classified as a Level 3 security due to the use of unobservable inputs that were significant to the valuation.

See accompanying notes

19

American Beacon Crescent Short Duration High Income Fund^SM

Statement of Assets and Liabilities

July 31, 2019 (Unaudited)

Assets:
Investments in unaffiliated securities, at fair value†	$	86,273,750
Investments in affiliated securities, at fair value‡		2,542,399
Cash		123,334
Dividends and interest receivable		1,107,563
Receivable for investments sold		2,698,941
Receivable for fund shares sold		52
Receivable for expense reimbursement (Note 2)		18,016
Prepaid expenses		60,300
Total assets		92,824,355
Liabilities:
Payable for investments purchased		1,733,363
Payable for fund shares redeemed		27,097
Dividends payable		1,321
Unfunded loan commitments		43,962
Management and sub-advisory fees payable (Note 2)		57,351
Service fees payable (Note 2)		909
Transfer agent fees payable (Note 2)		823
Custody and fund accounting fees payable		17,066
Professional fees payable		45,583
Trustee fees payable (Note 2)		278
Payable for prospectus and shareholder reports		2,042
Other liabilities		36
Total liabilities		1,929,831
Net assets	$	90,894,524
Analysis of net assets:
Paid-in-capital	$	95,513,088
Total distributable earnings (deficits)A		(4,618,564	)
Net assets	$	90,894,524
Shares outstanding at no par value (unlimited shares authorized):
Institutional Class		9,130,669
Y Class		382,578
Investor Class		60,948
A Class		139,400
C Class		45,366
Net assets:
Institutional Class	$	85,047,518
Y Class	$	3,560,866
Investor Class	$	567,941
A Class	$	1,295,759
C Class	$	422,440
Net asset value, offering and redemption price per share:
Institutional Class	$	9.31
Y Class	$	9.31
Investor Class	$	9.32
A Class	$	9.30
A Class (offering price)	$	9.54
C Class	$	9.31
† Cost of investments in unaffiliated securities	$	85,845,082
‡ Cost of investments in affiliated securities	$	2,542,399
A The Fund’s investments in affiliated securities did not have unrealized appreciation (depreciation) at period end.

See accompanying notes

20

American Beacon Crescent Short Duration High Income Fund^SM

Statement of Operations

For the period ended July 31, 2019 (Unaudited)

Investment income:
Dividend income from affiliated securities (Note 7)	$	35,203
Interest income		2,544,598
Total investment income		2,579,801
Expenses:
Management and sub-advisory fees (Note 2)		334,168
Transfer agent fees:
Institutional Class (Note 2)		6,239
Y Class (Note 2)		1,808
Investor Class		511
A Class		28
C Class		16
Custody and fund accounting fees		37,177
Professional fees		53,733
Registration fees and expenses		28,671
Service fees (Note 2):
Investor Class		3,949
A Class		373
C Class		177
Distribution fees (Note 2):
A Class		1,683
C Class		2,175
Prospectus and shareholder report expenses		7,049
Trustee fees (Note 2)		2,581
Other expenses		3,861
Total expenses		484,199
Net fees waived and expenses (reimbursed) (Note 2)		(97,124	)
Net expenses		387,075
Net investment income		2,192,726
Realized and unrealized gain (loss) from investments:
Net realized (loss) from:
Investments in unaffiliated securitiesA		(782,651	)
Change in net unrealized appreciation of:
Investments in unaffiliated securitiesB		2,269,376
Net gain from investments		1,486,725
Net increase in net assets resulting from operations	$	3,679,451
A The Fund did not recognize net realized gains (losses) from the sale of investments in affiliated securities.
B The Fund’s investments in affiliated securities did not have a change in unrealized appreciation (depreciation) at period end.

See accompanying notes

21

American Beacon Crescent Short Duration High Income Fund^SM

Statement of Changes in Net Assets

	Six Months Ended July 31, 2019			Year Ended January 31, 2019
	(unaudited)
Increase (decrease) in net assets:
Operations:
Net investment income	$	2,192,726		$	4,598,725
Net realized (loss) from investments in unaffiliated securities		(782,651	)		(1,795,322	)
Change in net unrealized appreciation (depreciation) of investments in unaffiliated securities		2,269,376			(2,269,671	)
Net increase in net assets resulting from operations		3,679,451			533,732
Distributions to shareholders:
Total retained earnings:
Institutional Class		(2,036,670	)		(4,264,570	)
Y Class		(98,862	)		(248,726	)
Investor Class		(13,312	)		(34,886	)
A Class		(30,483	)		(65,085	)
C Class		(8,189	)		(21,512	)
Net distributions to shareholders		(2,187,516	)		(4,634,779	)
Capital share transactions (Note 10):
Proceeds from sales of shares		2,473,906			16,393,954
Reinvestment of dividends and distributions		2,176,872			4,610,610
Cost of shares redeemed		(5,816,259	)		(14,291,239	)
Net increase (decrease) in net assets from capital share transactions		(1,165,481	)		6,713,325
Net increase in net assets		326,454			2,612,278
Net assets:
Beginning of period		90,568,070			87,955,792
End of period	$	90,894,524		$	90,568,070

See accompanying notes

22

American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

1.  Organization and Significant Accounting Policies

American Beacon Funds (the “Trust”) is organized as a Massachusetts business trust. The Fund, a series within the Trust, is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified, open-end management investment company. As of July 31, 2019, the Trust consists of thirty-three active series, one of which is presented in this filing: American Beacon Crescent Short Duration High Income Fund (the “Fund”). The remaining thirty-two active series are reported in separate filings.

American Beacon Advisors, Inc. (the “Manager”) is a Delaware corporation and a wholly-owned subsidiary of Resolute Investment Managers, Inc. (“RIM”) organized in 1986 to provide business management, advisory, administrative, and asset management consulting services to the Trust and other investors. The Manager is registered as an investment advisor under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). RIM is, in turn, a wholly-owned subsidiary of Resolute Acquisition, Inc., which is a wholly-owned subsidiary of Resolute Topco, Inc., a wholly-owned subsidiary of Resolute Investment Holdings, LLC (“RIH”). RIH is owned primarily by Kelso Investment Associates VIII, L.P., KEP VI, LLC and Estancia Capital Partners L.P., investment funds affiliated with Kelso & Company, L.P. (“Kelso”) or Estancia Capital Management, LLC (“Estancia”), which are private equity firms.

Recently Adopted Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-08, Premium Amortization of Purchased Callable Debt Securities. The amendments in the ASU shorten the premium amortization period on a purchased callable debt security from the security’s contractual life to the earliest call date. It is anticipated that this change will enhance disclosures by reducing losses recognized when a security is called on an earlier date. This ASU is effective for fiscal years beginning after December 15, 2018. The Manager continues to evaluate the impact this ASU will have on the financial statements and other disclosures.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (“Topic 820”). The amendments in the ASU impact disclosure requirements for fair value measurement. It is anticipated that this change will enhance the effectiveness of disclosures in the notes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted and can include the entire standard or certain provisions that exclude or amend disclosures. For the period ended July 31, 2019, the Fund has chosen to adopt the standard. The adoption of this ASU guidance did not have a material impact on the financial statements and other disclosures.

Class Disclosure

The Fund has multiple classes of shares designed to meet the needs of different groups of investors. The following table sets forth the differences amongst the classes:

Class	Eligible Investors	Minimum Initial Investments
Institutional	Large institutional investors - sold directly or through intermediary channels.	$	250,000
Y Class	Large institutional retirement plan investors - sold directly or through intermediary channels.	$	100,000
Investor	All investors using intermediary organizations, such as broker-dealers or retirement plan sponsors.	$	2,500
A Class	All investors who invest through intermediary organizations, such as broker-dealers or third party administrator. Retail investors who invest directly through a financial intermediary such as a broker, bank, or registered investment advisor which may include a front-end sales charge and a contingent deferred sales charge (“CDSC”).	$	2,500
C Class	Retail investors who invest directly through a financial intermediary such as a broker or through employee directed benefit plans with applicable sales charges which may include CDSC.	$	1,000

23

American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Each class offered by the Trust has equal rights as to assets and voting privileges. Income and non-class specific expenses are allocated daily to each class based on the relative net assets. Realized and unrealized capital gains and losses of each class are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include service, distribution, transfer agent fees, and sub-transfer agent fees that vary amongst the classes as described more fully in Note 2.

Significant Accounting Policies

The following is a summary of significant accounting policies, consistently followed by the Fund in preparation of the financial statements. The Fund is considered an investment company and accordingly, follows the investment company accounting and reporting guidance of the FASB Accounting Standards Codification Topic 946, Financial Services – Investment Companies, a part of Generally Accepted Accounting Principles (“U.S. GAAP”).

Security Transactions and Investment Income

Security transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date.

Dividend income, net of foreign taxes, is recorded on the ex-dividend date, except certain dividends from foreign securities which are recorded as soon as the information is available to the Fund. Interest income, net of foreign taxes, is earned from settlement date, recorded on the accrual basis, and adjusted, if necessary, for accretion of discounts and amortization of premiums. Realized gains (losses) from securities sold are determined based on specific lot identification.

Distributions to Shareholders

The Fund distributes most or all of its net earnings and realized gains, if any, each taxable year in the form of dividends from net investment income on a daily basis and distributions of realized net capital gains and net gains from foreign currency transactions on an annual basis. The Fund does not have a fixed dividend rate and does not guarantee that it will pay any distributions in any particular period. Dividends to shareholders are determined in accordance with federal income tax regulations, which may differ in amount and character from net investment income and realized gains recognized for purposes of U.S. GAAP. To the extent necessary to fully distribute capital gains, the Fund may designate earnings and profits distributed to shareholders on the redemption of shares.

Allocation of Income, Trust Expenses, Gains, and Losses

Investment income, realized and unrealized gains and losses from investments of the Fund is allocated daily to each class of shares based upon the relative proportion of net assets of each class to the total net assets of the Fund. Expenses directly charged or attributable to the Fund will be paid from the assets of the Fund. Generally, expenses of the Trust will be allocated among and charged to the assets of the Fund on a basis that the Trust’s Board of Trustees (the “Board”) deems fair and equitable, which may be based on the relative net assets of the Fund or nature of the services performed and relative applicability to the Fund.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimated.

Other

Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In the normal course of business, the Trust

24

American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

enters into contracts that provide indemnification to the other party or parties against potential costs or liabilities. The Trust’s maximum exposure under these arrangements is dependent on claims that may be made in the future and, therefore, cannot be estimated. The Trust has had no prior claims or losses pursuant to any such agreement.

Concentration of Ownership

From time to time, the Fund may have a concentration of one or more accounts constituting a significant percentage of shares outstanding. Investment activities by holders of accounts that represent a significant ownership of more than 5% of the Fund’s outstanding shares could have a material impact on the Fund. As of July 31, 2019, based on management’s evaluation of the shareholder account base, two accounts have been identified as representing an unaffiliated significant ownership of approximately 42% of the Fund’s outstanding shares.

2.  Transactions with Affiliates

Management and Investment Sub-Advisory Agreements

The Fund and the Manager are parties to a Management Agreement that obligates the Manager to provide the Fund with investment advisory and administrative services. As compensation for performing the duties under the Management Agreement, the Manager will receive an annualized management fee based on a percentage of the Fund’s average daily net assets that is calculated and accrued daily according to the following schedule:

First $5 billion	0.35	%
Next $5 billion	0.325	%
Next $10 billion	0.30	%
Over $20 billion	0.275	%

The Trust, on behalf of the Fund, and the Manager have entered into an Investment Advisory Agreement with Crescent Capital Group LP (the “Sub-Advisor”) pursuant to which the Fund has agreed to pay an annualized sub-advisory fee that is calculated and accrued daily based on the Fund’s average daily net assets according to the following schedules:

First $250 million	0.40	%
Next $750 million	0.35	%
Over $1 billion	0.30	%

The Management and Sub-Advisory Fees paid by the Fund during the period ended July 31, 2019 were as follows:

	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.35	%	$	155,945
Sub-Advisor Fees		0.40	%		178,223
Total		0.75	%	$	334,168

Distribution Plans

The Fund, except for the A and C Classes of the Fund, has adopted a “defensive” Distribution Plan (the “Plan”) in accordance with Rule 12b-1 under the Act, pursuant to which no separate fees may be charged to the Fund for distribution purposes. However, the Plan authorizes the management fee received by the Manager and the investment advisors hired by the Manager to be used for distribution purposes. Under this Plan, the Fund does not intend to compensate the Manager or any other party, either directly or indirectly, for the distribution of Fund shares.

25

American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Separate Distribution Plans (the “Distribution Plans”) have been adopted pursuant to Rule 12b-1 under the Act for the A and C Classes of the Fund. Under the Distribution Plans, as compensation for distribution and shareholder servicing assistance, the Manager receives an annual fee of 0.25% of the average daily net assets of the A Class and 1.00% of the average daily net assets of the C Class. The fee will be payable without regard to whether the amount of the fee is more or less than the actual expenses incurred in a particular month by the Manager for distribution assistance.

Service Plans

The Manager and the Trust entered into a Service Plan that obligates the Manager to oversee additional shareholder servicing of the Investor, A, and C Classes of the Fund. As compensation for performing the duties required under the Service Plan, the Manager receives an annualized fee up to 0.25% of the average daily net assets of the A and C Classes, and up to 0.375% of the average daily net assets of the Investor Class of the Fund.

Sub-Transfer Agent Fees

The Manager has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Institutional and Y Classes of the Fund and has agreed to compensate the intermediaries for providing these services. Intermediaries transact with the Fund primarily through the use of omnibus accounts on behalf of its customers who hold positions in the Fund. Certain services would have been provided by the Fund’s transfer agent and other service providers if the shareholders’ accounts were maintained directly by the Fund’s transfer agent. Accordingly, the Fund, pursuant to Board approval, has agreed to reimburse the Manager for certain non-distribution shareholder services provided by financial intermediaries for the Institutional and Y Classes. The reimbursement amounts (sub-transfer agent fees) paid to the Manager are subject to a fee limit of up to 0.10% of an intermediary’s average net assets in the Institutional and Y Classes on an annual basis. During the period ended July 31, 2019, the sub-transfer agent fees, as reflected in “Transfer agent fees” on the Statement of Operations, were as follows:

Fund	Sub-Transfer Agent Fees
Crescent Short Duration High Income	$	6,854

As of July 31, 2019, the Fund owed the Manager the following reimbursement of sub-transfer agent fees, as reflected in “Transfer agent fees payable” on the Statement of Assets and Liabilities:

Fund	Reimbursement Sub-Transfer Agent Fees
Crescent Short Duration High Income	$	823

Investments in Affiliated Funds

The Fund may invest in the American Beacon U.S. Government Money Market Select Fund (the “USG Select Fund”). The Fund and the USG Select Fund have the same investment advisor and therefore, are considered to be affiliated. The Manager serves as investment advisor to the USG Select Fund and receives management fees and administrative fees totaling 0.10% of the average daily net assets of the USG Select Fund. During the period ended July 31, 2019, the Manager earned fees on the Fund’s direct investments in the USG Select Fund as shown below:

Fund	Direct Investments in USG Select Fund
Crescent Short Duration High Income	$	1,514

26

American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Interfund Credit Facility

Pursuant to an exemptive order issued by the SEC, the Fund, along with other registered investment companies having management contracts with the Manager, may participate in a credit facility whereby each fund, under certain conditions, is permitted to lend money directly to and borrow directly from other participating funds for temporary purposes. The interfund credit facility is advantageous to the funds because it provides added liquidity and eliminates the need to maintain higher cash balances to meet redemptions. This situation could arise when shareholder redemptions exceed anticipated volumes and certain funds have insufficient cash on hand to satisfy such redemptions or when sales of securities do not settle as expected, resulting in a cash shortfall for a fund. When a fund liquidates portfolio securities to meet redemption requests, they often do not receive payment in settlement for up to two days (or longer for certain foreign transactions). Redemption requests normally are satisfied on the next business day. The credit facility provides a source of immediate, short-term liquidity pending settlement of the sale of portfolio securities. The credit facility is administered by a credit facility team consisting of professionals from the Manager’s asset management, compliance, and accounting areas who report the activities of the credit facility to the Board. During the period ended July 31, 2019, the Fund did not utilize the credit facility.

Expense Reimbursement Plan

The Manager contractually agreed to reduce fees and/or reimburse expenses for the classes of the Fund to the extent that total operating expenses exceed the Fund’s expense cap. During the period ended July 31, 2019, the Manager waived and/or reimbursed expenses as follows:

		Expense Cap					Expenses Ineligible for Recoupment				Expiration of Reimbursed Expenses
Fund	Class	2/1/2019 - 7/31/2019			Reimbursed Expenses				(Recouped) Expenses
Crescent Short Duration High Income	Institutional		0.85	%	$	88,339	$	-	$	-		2022
Crescent Short Duration High Income	Y		0.95	%		3,828		-		-		2022
Crescent Short Duration High Income	Investor		1.23	%		3,930		-		-		2022
Crescent Short Duration High Income	A		1.25	%		728		-		-		2022
Crescent Short Duration High Income	C		2.00	%		299		-		-		2022

Of these amounts, $18,016 was disclosed as a receivable from the Manager on the Statement of Assets and Liabilities at July 31, 2019.

The Fund has adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of such fee reductions and expense reimbursements. Under the policy, the Manager can be reimbursed by the Fund for any contractual or voluntary fee reductions 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 Fund’s annual operating expenses to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or time of recoupment. The reimbursed expenses listed above will expire in 2022. The Fund did not record a liability for potential reimbursements due to the current assessment that reimbursements are uncertain. The carryover of excess expenses potentially reimbursable to the Manager are as follows:

Fund	Recouped Expenses		Excess Expense Carryover		Expired Expense Carryover		Expiration of Reimbursed Expenses
Crescent Short Duration High Income	$	-	$	134,245	$	67,388		2019-2020
Crescent Short Duration High Income		-		175,701		-		2020-2021
Crescent Short Duration High Income		-		208,743		-		2021-2022

27

American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Sales Commissions

The Fund’s Distributor, Resolute Investment Distributors, Inc. (“RID” or “Distributor”), may receive a portion of Class A sales charges from broker dealers and it may be used to offset distribution related expenses. During the period ended July 31, 2019 there were no sales commissions collected by RID for Class A Shares.

A CDSC of 0.50% will be deducted with respect to Class A Shares on certain purchases of $1,000,000 or more that are redeemed in whole or part within 18 months of purchase, unless waived as discussed in the Fund’s Prospectus. Any applicable CDSC will be 0.50% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended July 31, 2019, there were no CDSC fees collected for Class A Shares of the Fund.

A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived as discussed in the Fund’s Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended July 31, 2019, there were no CDSC fees collected by RID for Class C Shares of the Fund.

Trustee Fees and Expenses

As compensation for their service to the Trusts, each Trustee receives an annual retainer of $120,000, plus $10,000 for each Board meeting attended in person or via teleconference, $2,500 for attendance by Committee members at meetings of the Audit Committee and the Investment Committee, and $1,500 for attendance by Committee members at meetings of the Nominating and Governance Committee, plus reimbursement of reasonable expenses incurred in attending Board meetings, Committee meetings, and relevant educational seminars. The Trustees also may be compensated for attendance at special Board and/or Committee meetings from time to time. The Board Chair receives an additional annual retainer of $50,000 as well as a $2,500 fee each quarter for attendance at the committee meetings. The Chairpersons of the Audit Committee and the Investment Committee each receive an additional annual retainer of $25,000 and the Chairman of the Nominating and Governance Committee receives an additional annual retainer of $10,000. These expenses are allocated on a prorated basis to each fund of the Trusts according to its respective net assets.

3.  Security Valuation and Fair Value Measurements

The price of the Fund’s shares is based on its net asset value (“NAV”) per share. The Fund’s NAV is computed by adding total assets, subtracting all the Fund’s liabilities, and dividing the result by the total number of shares outstanding.

The NAV of each class of the Fund’s shares is determined based on a pro rata allocation of the Fund’s investment income, expenses and total capital gains and losses. The Fund’s NAV per share is determined each business day as of the regular close of trading on the New York Stock Exchange (“NYSE” or “Exchange”), which is typically 4:00 p.m. Eastern Time (“ET”). However, if trading on the NYSE closes at a time other than 4:00 p.m. ET, the Fund’s NAV per share typically would still be determined as of the regular close of trading on the NYSE. The Fund does not price its shares on days that the NYSE is closed. Foreign exchanges may permit trading in foreign securities on days when the Fund is not open for business, which may result in the value of the Fund’s portfolio investments being affected at a time when you are unable to buy or sell shares.

Equity securities, including shares of closed-end funds and exchange-traded funds (“ETFs”), are valued at the last sale price or official closing price taken from the primary exchange in which each security trades. Investments in other mutual funds are valued at the closing NAV per share on the day of valuation. Debt securities are valued at bid quotes from broker/dealers or evaluated bid prices from pricing services, who may consider a number of inputs and factors, such as prices of comparable securities, yield curves, spreads, credit ratings, coupon rates, maturity, default rates, and underlying collateral. Futures are valued based on their daily settlement prices.

28

American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Exchange-traded and over-the-counter (“OTC”) options are valued at the last sale price. Options with no last sale for the day are priced at mid quote. Swaps are valued at evaluated mid prices from pricing services.

The valuation of securities traded on foreign markets and certain fixed income securities will generally be based on prices determined as of the earlier closing time of the markets on which they primarily trade unless a significant event has occurred. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. ET.

Securities may be valued at fair value, as determined in good faith and pursuant to procedures approved by the Board, under certain limited circumstances. For example, fair value pricing will be used when market quotations are not readily available or reliable, as determined by the Manager, such as when (i) trading for a security is restricted or stopped; (ii) a security’s trading market is closed (other than customary closings); or (iii) a security has been de-listed from a national exchange. A security with limited market liquidity may require fair value pricing if the Manager determines that the available price does not reflect the security’s true market value. In addition, if a significant event that the Manager determines to affect the value of one or more securities held by the Fund occurs after the close of a related exchange but before the determination of the Fund’s NAV, fair value pricing may be used on the affected security or securities. Securities of small-capitalization companies are also more likely to require a fair value determination using these procedures because they are more thinly traded and less liquid than the securities of larger-capitalization companies. The Fund may fair value securities as a result of significant events occurring after the close of the foreign markets in which the Fund invests as described below. In addition, the Fund may invest in illiquid securities requiring these procedures.

The Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund’s pricing time of 4:00 p.m. ET. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. If the Manager determines that the last quoted prices of non-U.S. securities will, in its judgment, materially affect the value of some or all its portfolio securities, the Manager can adjust the previous closing prices to reflect what it believes to be the fair value of the securities as of the close of the Exchange. In deciding whether it is necessary to adjust closing prices to reflect fair value, the Manager reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. These securities are fair valued using a pricing service, using methods approved by the Board, that considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant American Depositary Receipts (“ADRs”) and futures contracts. The Valuation Committee, established by the Board, may also fair value securities in other situations, such as when a particular foreign market is closed but the Fund is open. The Fund uses outside pricing services to provide closing prices and information to evaluate and/or adjust those prices. As a means of evaluating its security valuation process, the Valuation Committee routinely compares closing prices, the next day’s opening prices in the same markets and adjusted prices.

Attempts to determine the fair value of securities introduce an element of subjectivity to the pricing of securities. As a result, the price of a security determined through fair valuation techniques may differ from the price quoted or published by other sources and may not accurately reflect the market value of the security when trading resumes. If a reliable market quotation becomes available for a security formerly valued through fair valuation techniques, the Manager compares the new market quotation to the fair value price to evaluate the effectiveness of the Fund’s fair valuation procedures. If any significant discrepancies are found, the Manager may adjust the Fund’s fair valuation procedures.

Valuation Inputs

Various inputs may be used to determine the fair value of the Fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

29

American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Level 1	-	Quoted prices in active markets for identical securities.
Level 2	-	Prices determined using other significant observable inputs. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Level 3	-	Prices determined using other significant unobservable inputs. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in pricing an investment.

Level 1 and Level 2 trading assets and trading liabilities, at fair value

Fixed-income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. Treasury obligations, sovereign issues, bank loans, convertible preferred securities, and non-U.S. bonds are normally valued by pricing service providers that use broker dealer quotations, reported trades or valuation estimates from their internal pricing models. The service providers’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates, and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy. Fixed-income securities purchased on a delayed-delivery basis are marked-to-market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Common stocks that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are generally categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment management companies will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value

The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of the fair value hierarchy are as follows.

Securities and other assets for which market quotes are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction and may be categorized as Level 3 of the fair value hierarchy.

Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the Exchange close, that materially affect the values of the Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade, do not open for trading for the entire day and no other market prices are available. The Board has delegated to the Manager the responsibility for monitoring significant events that may materially affect the fair values of a Fund’s securities or assets and for determining whether the value of the applicable securities or assets should be re-evaluated in light of such significant events.

The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation methods to the Manager. For instances in which daily market quotes are not readily available, investments may be valued pursuant to guidelines established by the Board. In the event that the security or asset cannot be valued, pursuant to one of the valuation methods established by the Board, the fair value of the security or asset will be determined in good faith by the Valuation Committee, generally based upon recommendations provided by the Manager.

30

American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

When a Fund uses fair valuation methods applied by the Manager that use significant unobservable inputs to determine its NAV, the securities priced using this methodology are categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Fund’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that a Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ from the value that would be realized if the securities were sold.

4.  Securities and Other Investments

Bank Loans and Senior Loans

Loans are typically administered by a bank, insurance company, finance company or other financial institution (the “agent”) for a lending syndicate of financial institutions. In a typical loan, the agent administers the terms of the loan agreement and is responsible for the collection of principal and interest and fee payments from the borrower and the apportionment of these payments to all lenders that are parties to the loan agreement. In addition, an institution (which may be the agent) may hold collateral on behalf of the lenders. Typically, under loan agreements, the agent is given broad authority in monitoring the borrower’s performance and is obligated to use the same care it would use in the management of its own property. In asserting rights against a borrower, the Fund normally will be dependent on the willingness of the lead bank to assert these rights, or upon a vote of all the lenders to authorize the action. If an agent becomes insolvent, or has a receiver, conservator, or similar official appointed for it by the appropriate regulatory authority, or becomes a debtor in a bankruptcy proceeding, the agent’s appointment may be terminated and a successor agent would be appointed. If an appropriate regulator or court determines that assets held by the agent for the benefit of purchasers of loans are subject to the claims of the agent’s general or secured creditors, the Fund might incur certain costs and delays in realizing payment on a loan or suffer a loss of principal and/or interest. The Fund may be subject to similar risks when it buys a participation interest or an assignment from an intermediary.

Bank loans are fixed and floating rate loans arranged through private negotiations between a company or a non-U.S. government and one or more financial institutions (lenders). The Fund may invest in senior loans, which are floating rate loans that hold a senior position in the capital structure of U.S. and foreign corporations, partnerships or other business entities. Under normal circumstances, senior loans have priority of claim ahead of other obligations of a borrower in the event of liquidation. Bank loans and senior loans may be collateralized or uncollateralized. They pay interest at rates that float above, or are adjusted periodically based on, a benchmark that reflects current interest rates.

The Fund may invest in such loans in the form of participations in loans and assignments of all or a portion of loans from third parties. In connection with purchasing participations in such instruments, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation. When the Fund purchases assignments from lenders, the Fund will acquire direct rights against the borrower on the loan. A Fund may acquire bank and senior loan assignments or participations. The purchaser of an assignment typically succeeds to all the rights and obligations of the assigning institution and becomes a lender under the credit agreement with respect to the debt obligation; however, the purchaser’s rights can be more restricted than those of the assigning institution, and, in any event, the Fund may not be able to unilaterally enforce all rights and remedies under the loan and with regard to any associated collateral. A participation typically results in a contractual relationship only with the institution participating out the interest, not with the borrower. In purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement against the borrower, and the Fund may not directly benefit from the collateral supporting the debt obligation in which it has purchased the participation. As a result, a Fund will be exposed to the credit risk of both the borrower and the institution selling the participation.

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American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

The Fund earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is included in “Interest income” on the Statement of Operations, is recognized ratably over the commitment period. Unfunded floating rate loan interests are marked-to-market daily, and any unrealized appreciation (depreciation) is included on the Statement of Assets and Liabilities and Statement of Operations.

Common Stock

Common stock generally takes the form of shares in a corporation which represent an ownership interest. It ranks below preferred stock and debt securities in claims for dividends and for assets of the company in a liquidation or bankruptcy. The value of a company’s common stock may fall as a result of factors directly relating to that company, such as decisions made by its management or decreased demand for the company’s products or services. A stock’s value may also decline because of factors affecting not just the company, but also companies in the same industry or sector. The price of a company’s stock may also be affected by changes in financial markets that are relatively unrelated to the company, such as changes in interest rates, currency exchange rates or industry regulation. Companies that elect to pay dividends on their common stock generally only do so after they invest in their own business and make required payments to bondholders and on other debt and preferred stock. Therefore, the value of a company’s common stock will usually be more volatile than its bonds, other debt and preferred stock. Common stock may be exchange-traded or OTC. OTC stock may be less liquid than exchange-traded stock.

Corporate Debt and Other Fixed-Income Securities

The Fund may hold debt, including government and corporate debt, and other fixed-income securities. The investment return of corporate debt securities reflects interest earning and changes in the market value of the security. Typically, the values of these types of securities change inversely with prevailing interest rates. Therefore, a fundamental risk of fixed-income securities is interest rate risk, which is the risk that their value will generally decline as prevailing interest rates rise, which may cause a Fund’s NAV to likewise decrease, and vice versa. How specific fixed-income securities may react to changes in interest rates will depend on specific characteristics of each security. Fixed-income securities are also subject to credit risk, which is the risk that the credit strength of an issuer of a fixed-income security will weaken and/or that the issuer will be unable to make timely principal and interest payments and that the security may go into default.

Delayed Funding Loans and Revolving Credit Facilities

A Fund may enter into, or acquire participations in, delayed funding loans and revolving credit facilities. Delayed funding loans and revolving credit facilities are borrowing arrangements in which the lender agrees to make loans up to a maximum amount upon demand by the borrower during a specific term. A revolving credit facility differs from a delayed funding loan in that as the borrower repays the loan, an amount equal to the repayment may be borrowed again during the term of the revolving credit facility. Delayed funding loans and revolving credit facilities usually provide for floating or variable rates of interest. These commitments may have the effect of requiring a Fund to increase its investment in a company at a time when it might not otherwise decide to do so (including at a time when the company’s financial condition makes it unlikely that such amounts will be repaid). To the extent that a Fund is committed to advance additional funds, it will at all times segregate or “earmark” assets, determined to be liquid in accordance with procedures established by the Board, in an amount sufficient to meet such commitments.

The Fund may invest in delayed funding loans and revolving credit facilities with credit quality comparable to that of issuers of its securities investments. Delayed funding loans and revolving credit facilities may be subject to restrictions on transfer, and only limited opportunities may exist to resell such instruments. As a result, a Fund may be unable to sell such investments at an opportune time or may have to resell them at less than fair market value.

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American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Floating Rate Loan Interest

The Fund may invest in floating rate loan interests. The floating rate loan interests held by the Fund are typically issued to companies (the “borrower”) by banks, other financial institutions, and privately and publicly offered corporations (the “lender”). Floating rate loan interests are generally non-investment grade, often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally the lending rate offered by one or more European banks, such as the London Interbank Offered Rate (“LIBOR”), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. The Fund considers these investments to be investments in debt securities for purposes of its investment policies.

When the Fund purchases a floating rate loan interest it may receive a facility fee and when it sells a floating rate loan interest, it may pay a facility fee. On an ongoing basis, the Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit amount of a floating rate loan interest. Facility and commitment fees are typically amortized to income over the term of the loan or term of the commitment, respectively. Consent and amendment fees are recorded to income as earned. Prepayment penalty fees, which may be received by the Fund upon the prepayment of a floating rate loan interest by a borrower, are recorded as realized gains. The Fund may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks.

Floating rate loan interests are usually freely callable at the borrower’s option. The Fund may invest in such loans in the form of participations in loans (“Participations”) or assignments (“Assignments”) of all or a portion of loans from third parties. Participations typically will result in the Fund having a contractual relationship only with the lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of offset against the borrower, and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the lender that is selling the Participation. The Fund’s investment in Participations involves the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, the Fund may be treated as a general creditor of the lender and may not benefit from any offset between the lender and the borrower. Assignments typically result in the Fund having a direct contractual relationship with the borrower, and the Fund may enforce compliance by the borrower with the terms of the loan agreement.

In connection with floating rate loan interests, the Fund may also enter into unfunded floating rate loan interests (“commitments”). In connection with these commitments, the Fund earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is included in “Interest income” on the Statement of Operations, is recognized ratably over the commitment period. Unfunded floating rate loan interests are marked-to-market daily, and any unrealized appreciation (depreciation) is included on the Statement of Assets and Liabilities and Statement of Operations.

Foreign Debt Securities

The Fund may invest in foreign fixed and floating rate income securities (including emerging market securities) all or a portion of which may be non-U.S. dollar denominated and which include: (a) debt obligations issued or guaranteed by foreign national, provincial, state, municipal or other governments with taxing authority or

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American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

by their agencies or instrumentalities, including Brady Bonds; (b) debt obligations of supranational entities; (c) debt obligations of the U.S. Government issued in non-dollar securities; (d) debt obligations and other fixed income securities of foreign corporate issuers (both dollar and non-dollar denominated); and (e) U.S. corporate issuers (both Eurodollar and non-dollar denominated). There is no minimum rating criteria for the Fund’s investments in such securities. Investing in the securities of foreign issuers involves special considerations that are not typically associated with investing in the securities of U.S. issuers. In addition, emerging markets are markets that have risks that are different and higher than those in more developed markets.

High-Yield Securities

Non-investment-grade securities are rated below the four highest credit grades by at least one of the public rating agencies (or are unrated if not publicly rated). Participation in high-yielding securities transactions generally involves greater returns in the form of higher average yields. However, participation in such transactions involves greater risks, including sensitivity to economic changes, solvency, and relative liquidity in the secondary trading market. Lower ratings may reflect a greater possibility that the financial condition of the issuer, or adverse changes in general economic conditions, or both, may impair the ability of the issuer to make payments of interest and principal. The prices and yields of lower-rated securities generally fluctuate more than higher-quality securities, and such prices may decline significantly in periods of general economic difficulty or rising interest rates.

Illiquid and Restricted Securities

Generally, an illiquid asset is an asset that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, as determined pursuant to Rule 22e-4 under the Investment Company Act or as otherwise permitted or required by SEC rules and interpretations. Historically, illiquid securities have included securities that have not been registered under the Securities Act, securities that are otherwise not readily marketable, and repurchase agreements having a remaining maturity of longer than seven calendar days. Securities that have not been registered under the Securities Act are referred to as private placements or restricted securities and are purchased directly from the issuer or in the secondary market. These securities may be sold only in a privately negotiated transaction or pursuant to an exemption from registration. A large institutional market exists for certain securities that are not registered under the Securities Act, including repurchase agreements, commercial paper, foreign securities, municipal securities and corporate bonds and notes. Institutional investors depend on an efficient institutional market in which the unregistered security can be readily resold or on an issuer’s ability to honor a demand for repayment. However, the fact that there are contractual or legal restrictions on resale of such investments to the general public or to certain institutions may not be indicative of their liquidity.

Limitations on resale may have an adverse effect on the marketability of portfolio securities, and the Fund might be unable to dispose of restricted or other illiquid securities promptly or at reasonable prices and might thereby experience difficulty satisfying redemptions within seven calendar days. In addition, the Fund may get only limited information about an issuer, so it may be less able to predict a loss. The Fund also might have to register such restricted securities in order to dispose of them resulting in additional expense and delay. Adverse market conditions could impede such a public offering of securities. In recognition of the increased size and liquidity of the institutional market for unregistered securities and the importance of institutional investors in the formation of capital, the SEC adopted Rule 144A under the Securities Act. Rule 144A is designed to facilitate efficient trading among institutional investors by permitting the sale of certain unregistered securities to qualified institutional buyers. To the extent privately placed securities held by the Fund qualify under Rule 144A and an institutional market develops for those securities, the Fund likely will be able to dispose of the securities without registering them under the Securities Act. To the extent that institutional buyers become, for a time, uninterested in purchasing these securities, investing in Rule 144A securities could increase the level of the Fund’s illiquidity. The Manager or the sub-advisor, as applicable, may determine that certain securities qualified for trading under Rule

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American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

144A are liquid. Regulation S under the Securities Act permits the sale abroad of securities that are not registered for sale in the United States and includes a provision for U.S. investors, such as the Fund, to purchase such unregistered securities if certain conditions are met.

Securities sold in private placement offerings made in reliance on the “private placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act and resold to qualified institutional buyers under Rule 144A under the Securities Act (“Section 4(a)(2) securities”) are restricted as to disposition under the federal securities laws, and generally are sold to institutional investors, such as the Fund, that agree they are purchasing the securities for investment and not with an intention to distribute to the public. Any resale by the purchaser must be pursuant to an exempt transaction and may be accomplished in accordance with Rule 144A. Section 4(a)(2) securities normally are resold to other institutional investors through or with the assistance of the issuer or dealers that make a market in the Section 4(a)(2) securities, thus providing liquidity.

Restricted securities outstanding during the period ended July 31, 2019 are disclosed in the Notes to the Schedule of Investments.

Other Investment Company Securities and Other Exchange-Traded Products

The Fund may invest in shares of other investment companies, including open-end funds, closed-end funds, ETFs, unit investment trusts, and other investment companies of the Trust. The Fund may invest in investment company securities advised by the Manager or a sub-advisor. Investments in the securities of other investment companies may involve duplication of advisory fees and certain other expenses. By investing in another investment company, the Fund becomes a shareholder of that investment company. As a result, the Fund’s shareholders indirectly will bear the Fund’s proportionate share of the fees and expenses paid by shareholders of the other investment company, in addition to the fees and expenses the Fund’s shareholders directly bear in connection with the Fund’s own operations. These other fees and expenses are reflected as Acquired Fund Fees and Expenses and are included in the Fees and Expenses Table for the Fund in its Prospectus, if applicable. Investments in other investment companies may involve the payment of substantial premiums above the value of such issuer’s portfolio securities.

Payment-In-Kind Securities

The Fund may invest in payment-in-kind securities (“PIKs”). PIKs give the issuer the option at each interest payment date of making interest payments in either cash or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro-rata adjustment from the “Unrealized appreciation (depreciation) of investments” to “Dividend and interest receivable” in the Statement of Assets and Liabilities.

5.  Principal Risks

Investing in the Fund may involve certain risks including, but not limited to, those described below.

Credit Risk

The Fund is subject to the risk that the issuer or guarantor of an obligation, or the counterparty to a transaction, including a derivatives contract or a loan, will fail to make timely payment of interest or principal or otherwise honor its obligations or default completely. The strategies utilized by the sub-advisors require accurate and detailed credit analysis of issuers and there can be no assurance that its analysis will be accurate or complete. The Fund may be subject to substantial losses in the event of credit deterioration or bankruptcy of one or more issuers in its portfolio.

35

American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Financial strength and solvency of an issuer are the primary factors influencing credit risk. In addition, inadequacy of collateral or credit enhancement for a debt instrument may affect its credit risk. Credit risk may change over the life of an instrument and debt obligations which are rated by rating agencies may be subject to downgrade. The credit ratings of debt instruments and investments represent the rating agencies’ opinions regarding their credit quality and are not a guarantee of future credit performance of such securities. Rating agencies attempt to evaluate the safety of the timely payment of principal and interest (or dividends) and do not evaluate the risks of fluctuations in market value. The ratings assigned to securities by rating agencies do not purport to fully reflect the true risks of an investment. Further, in recent years many highly-rated structured securities have been subject to substantial losses as the economic assumptions on which their ratings were based proved to be materially inaccurate. A decline in the credit rating of an individual security held by the Fund may have an adverse impact on its price and make it difficult for the Fund to sell it. Ratings represent a rating agency’s opinion regarding the quality of the security and are not a guarantee of quality. 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. Credit risk is typically greater for securities with ratings that are below investment grade (commonly referred to as “junk bonds”). Since the Funds can invest significantly in lower quality debt securities considered speculative in nature, this risk will be substantial. A downgrade or default affecting any of the Fund’s securities could affect the Fund’s performance

Floating Rate Securities Risk

The coupons on certain fixed income securities in which the Fund may invest are not fixed and may fluctuate based upon changes in market rates. The coupon on a floating rate security is generally based on an interest rate such as a money-market index, London Interbank Offered Rate (“LIBOR”) or a Treasury bill rate. Such securities are subject to interest rate risk and may fluctuate in value in response to interest rate changes if there is a delay between changes in market interest rates and the interest reset date for the obligation, or for other reasons. As short-term interest rates decline, the coupons on floating rate securities typically decrease. Alternatively, during periods of rising interest rates, changes in the coupons of floating rate securities may lag behind changes in market rates or may have limits on the maximum increases in the coupon rates. The value of floating rate securities may decline if their coupons do not rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline.

High-Yield Securities Risk

Investing in high-yield, below investment-grade securities (commonly referred to as “junk bonds”) generally involves significantly greater risks of loss of your money than an investment in investment grade securities. High-yield debt securities may fluctuate more widely in price and yield and may fall in price when the economy is weak or expected to become weak. High-yield securities are considered to be speculative with respect to an issuer’s ability to pay interest and principal and carry a greater risk that the issuers of lower-rated securities will default on the timely payment of principal and interest. Below investment grade securities may experience greater price volatility and less liquidity than investment grade securities.

Illiquid and Restricted Securities Risk

Securities not registered in the U.S. under the Securities Act, including Rule 144A securities, are restricted as to their resale. Such securities may not be listed on an exchange and may have no active trading market. They may be more difficult to purchase or sell at an advantageous time or price because such securities may not be readily marketable in broad public markets. The Fund may not be able to sell a restricted security when the sub-advisor considers it desirable to do so and/or may have to sell the security at a lower price than the Fund believes is its fair market value. In addition, transaction costs may be higher for restricted securities and the Fund may receive only limited information regarding the issuer of a restricted security. The Fund may have to bear the expense of registering restricted securities for resale and the risk of substantial delays in effecting the registration.

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American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Interest Rate Risk

Investments in fixed-income securities or derivatives that are influenced by interest rates are subject to interest rate risk. The value of the Fund’s fixed-income investments typically will fall when interest rates rise. The Fund may be particularly sensitive to changes in interest rates if it invests in debt securities with intermediate and long terms to maturity. Debt securities with longer maturities tend to be more sensitive to changes in interest rates, usually making them more volatile than debt securities with shorter durations. For example, if a bond has a duration of three years, a 1% increase in interest rates could be expected to result in a 3% decrease in the value of the bond., whereas if a bond has a duration of one year, a 1% increase in interest rates could be expected to result in a 1% decrease in value. Yields of debt securities will fluctuate over time. Following the financial crisis that started in 2008, the Federal Reserve attempted to stabilize the economy and support the economic recovery by keeping the federal funds rate (the interest rate at which depository institutions lend reserve balances to each other overnight) at or near zero percent. The Federal Reserve raised the federal funds rate several times since December 2015 and may increase or in the near future. Interest rates may rise significantly and/or rapidly, potentially resulting insubstantial losses to the Fund. During periods of very low or negative interest rates, the Fund may be unable to maintain positive returns. Changing interest rates, including rates that fall below zero, may have unpredictable effects on markets, may result in heightened market volatility and may detract from Fund performance to the extent the Fund is exposed to such interest rates.

Liquidity Risk

When there is little or no active trading market for a specific type of security, it can become more difficult to purchase or sell the securities at or near their perceived value. During such periods, certain investments held by the Fund may be difficult to sell or other investments may be difficult to purchase at favorable times or prices. As a result, the Fund may have to lower the price on certain securities that it is trying to sell, sell other securities instead or forgo an investment opportunity, any of which could have a negative effect on Fund management or performance. Additionally, the market for certain investments may become illiquid under adverse market or economic conditions independent of any specific adverse changes in the conditions of a particular issuer.

Loan Interests Risk

Unlike publicly traded common stocks which trade on national exchanges, there is no central place or exchange for loans, including bank loans and senior loans, to trade. Loans trade in an over-the-counter market, and confirmation and settlement, which are effected through standardized procedures and documentation, may take significantly longer than seven days to complete. Extended trade settlement periods may, in unusual market conditions with a high volume of shareholder redemptions, present risk to shareholders regarding a Fund’s ability to pay redemption proceeds within the allowable time periods stated in its prospectus. The secondary market for floating rate loans also may be subject to irregular trading activity and wide bid/ask spreads. The lack of an active trading market for certain loans may impair the ability of a Fund to sell its loan interests at a time when it may otherwise be desirable to do so or may require a Fund to sell them at prices that are less than what a Fund regards as their fair market value and may make it difficult to value such loans. Interest in loans made to finance highly leveraged companies or transactions, such as corporate acquisitions, may be especially vulnerable to adverse changes in economic or market conditions. When a Fund’s loan interest is a participation, the Fund is subject to the risk that the party selling the participation interest will not remit a Fund’s pro rata share of loan payments to the Fund, and the Fund may have less control over the exercise of remedies than the party selling the participation interest.

Market Risk

Conditions in the U.S. and many foreign economies have resulted, and may continue to result, in certain instruments experiencing unusual liquidity issues, increased price volatility and, in some cases, credit downgrades and increased likelihood of default. These events have reduced the willingness and ability of some lenders to

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American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

extend credit, and have made it more difficult for some borrowers to obtain financing on attractive terms, if at all. In some cases, traditional market participants have been less willing to make a market in some types of debt instruments, which has affected the liquidity of those instruments. During times of market turmoil, investors tend to look to the safety of securities issued or backed by the U.S. Treasury, causing the prices of these securities to rise and the yields to decline. Reduced liquidity in fixed income and credit markets may negatively affect many issuers worldwide. In addition, global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely impact issuers in a different country or region. A rise in protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the economies of many nations in ways that cannot necessarily be foreseen at the present time.

In response to the financial crisis, the U.S. and other governments, the Federal Reserve and certain foreign central banks have taken steps to support financial markets. In some countries where economic conditions are recovering, they are nevertheless perceived as still fragile. Withdrawal of government support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeeding, could adversely impact the value and liquidity of certain securities. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasi-governmental organizations, including changes in tax laws. The impact of new financial regulation legislation on the markets and the practical implications for market participants may not be fully known for some time. Regulatory changes are causing some financial services companies to exit long-standing lines of business, resulting in dislocations for other market participants. In addition, political and diplomatic events within the U.S. and abroad, such as the U.S. government’s inability at times to agree on a long-term budget and deficit reduction plan, the threat of a federal government shutdown and threats not to increase the federal government’s debt limit, may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree. The U.S. government has recently reduced the federal corporate income tax rate, and future legislative, regulatory and policy changes may result in more restrictions on international trade, less stringent prudential regulation of certain players in the financial markets, and significant new investments in infrastructure and national defense. Markets may react strongly to expectations about the changes in these policies, which could increase volatility, especially if the markets’ expectations for changes in government policies are not borne out.

Changes in market conditions will not have the same impact on all types of securities. Interest rates have been unusually low in recent years in the United States and abroad. Because there is little precedent for this situation, it is difficult to predict the impact of a significant rate increase on various markets. For example, because investors may buy securities or other investments with borrowed money, a significant increase in interest rates may cause a decline in the markets for those investments. Because of the sharp decline in the worldwide price of oil, there is a concern that oil producing nations may withdraw significant assets now held in U.S. Treasuries, which could force a substantial increase in interest rates. Regulators have expressed concern that rate increases may cause investors to sell fixed income securities faster than the market can absorb them, contributing to price volatility. In addition, there is a risk that the prices of goods and services in the U.S. and many foreign economies may decline over time, known as deflation (the opposite of inflation). Deflation may have an adverse effect on stock prices and creditworthiness and may make defaults on debt more likely. If a country’s economy slips into a deflationary pattern, it could last for a prolonged period and may be difficult to reverse.

The precise details and the resulting impact of the United Kingdom’s vote to leave the European Union (the “EU”), commonly referred to as “Brexit,” are not yet known. The effect on the United Kingdom’s economy will likely depend on the nature of trade relations with the EU and other major economies following its exit, which are matters to be negotiated. The outcomes may cause increased volatility and have a significant adverse impact on world financial markets, other international trade agreements, and the United Kingdom and European economies, as well as the broader global economy for some time, which could significantly adversely affect the value of the Fund’s investments in the United Kingdom and Europe.

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American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Other Investment Companies Risk

The Fund may invest in shares of other registered investment companies, including money market funds. To the extent that the Fund invests in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses, including for example, advisory and administrative fees, charged by those investment companies in addition to the Fund’s direct fees and expenses and will be subject to the risks associated with investments in those companies. For example, the Fund’s investments in money market funds are subject to interest rate risk, credit risk, and market risk. The Fund must rely on the investment company in which it invests to achieve its investment objective. If the investment company fails to achieve its investment objective, the value of the Fund’s investment may decline, adversely affecting the Fund’s performance. To the extent the Fund invests in other investment companies that invest in equity securities, fixed-income securities and/or foreign securities, or that track an index, the Fund is subject to the risks associated with the underlying investments held by the investment company or the index fluctuations to which the investment company is subject.

Prepayment and Extension Risk

Prepayment risk is the risk that the principal amount of a bond may be repaid prior to the bond’s maturity date. Due to a decline in interest rates or excess cash flow, a debt security may be called or otherwise prepaid before maturity. If this occurs, no additional interest will be paid on the investment and the Fund may have to invest at a lower rate, may not benefit from an increase in value that may result from declining interest rates, and may lose any premium it paid to acquire the security. Variable and floating rate securities may be less sensitive to prepayment risk. Extension risk is the risk that a decrease in prepayments may, as a result of higher interest rates or other factors, result in the extension of a security’s effective maturity, heighten interest rate risk and increase the potential for a decline in its price.

Unrated Securities Risk

Because the Fund may purchase securities that are not rated by any rating organization, the Sub-Advisor, after assessing their credit quality, may internally assign ratings to certain of those securities in categories of those similar to those of rating organizations. Investing in unrated securities involves the risk that the Sub-Advisor may not accurately evaluate the security’s comparative credit rating. Analysis of the creditworthiness of issuers of unrated securities may be more complex than for issuers of higher-quality debt obligations. To the extent that the Fund invests in unrated securities, the Fund’s success in achieving its investment objectives may depend more heavily on the Sub-Advisor’s credit analysis than if the Fund invested exclusively in rated securities. 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.

6.  Federal Income and Excise Taxes

It is the policy of the Fund to qualify as a regulated investment company (“RIC”), by complying with all applicable provisions of Subchapter M of the Internal Revenue Code, as amended, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes. For federal income tax purposes, the Fund is treated as a single entity for the purpose of determining such qualification.

The Fund does not have any unrecorded tax liabilities in the accompanying financial statements. Each of the tax years in the four year period ended January 31, 2019 remain subject to examination by the Internal Revenue Service. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statement of Operations.

The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on returns of income earned or gains realized or repatriated. Taxes are accrued and applied to net investment income, net realized capital gains and net unrealized appreciation (depreciation), as applicable, as the income is earned or capital gains are recorded.

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American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Dividends are categorized in accordance with income tax regulations which may treat certain transactions differently than U.S. GAAP. Accordingly, the character of distributions and composition of net assets for tax purposes may differ from those reflected in the accompanying financial statements.

As of July 31, 2019 the tax cost for the Fund and their respective gross unrealized appreciation (depreciation) were as follows:

Fund	Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Crescent Short Duration High Income	$	88,409,905	$	1,277,144	$	(870,900	)	$	406,244

Under the Regulated Investment Company Modernization Act of 2010 (“RIC MOD”), net capital losses recognized by the Fund in taxable years beginning after December 22, 2010 are carried forward indefinitely and retain their character as short-term and/or long-term losses.

During the period ended January 31, 2019, the Fund had the following post RIC MOD capital loss carryforwards:

Fund	Short-Term Capital Loss Carryforwards		Long-Term Capital Loss Carryforwards
Crescent Short Duration High Income	$	2,052,155	$	2,210,056

7.  Investment Transactions

The aggregate cost of purchases and proceeds from sales and maturities of investments, other than short-term obligations, for the period ended July 31, 2019 were as follows:

Fund	Purchases (non-U.S. Government Securities)		Sales (non-U.S. Government Securities)
Crescent Short Duration High Income	$	49,689,276	$	47,076,754

A summary of the Fund’s transactions in the USG Select Fund for the period ended July 31, 2019 were as follows:

Fund	Type of Transaction	January 31, 2019 Shares/Fair Value		Purchases		Sales		July 31, 2019 Shares/Fair Value		Dividend Income
Crescent Short Duration High Income	Direct	$	3,744,678	$	20,010,464	$	21,212,743	$	2,542,399	$	35,203

8.  Borrowing Arrangements

Effective November 15, 2018 (the “Effective Date”), the Fund, along with certain other funds managed by the Manager (“Participating Funds”), entered into a committed revolving line of credit (the “Committed Line”) agreement with State Street Bank and Trust Company (the “Bank”) to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Committed Line is $250 million with interest at a rate equal to the higher of (a) one-month London Inter-Bank Offered Rate (“LIBOR”) plus 1.25% per annum or (b) the Federal Funds rate plus 1.25% per annum on amounts borrowed. Each of the Participating Funds will pay a closing fee of $100,000 on the Effective Date and a quarterly commitment fee at a rate of 0.25% per annum on the unused portion of the Committed Line amount. The Committed Line expires November 14, 2019, unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

40

American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

On the Effective Date, the Fund, along with certain other Participating Funds managed by the Manager, also entered into an uncommitted discretionary demand revolving line of credit (the “Uncommitted Line”) agreement with the Bank to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Uncommitted Line is $50 million with interest at a rate equal to the higher of (a) one-month LIBOR plus 1.25% per annum or (b) the Federal Funds rate plus 1.25% per annum on each outstanding loan. Each of the Participating Funds will pay a closing fee of $35,000 on the Effective Date. The Uncommitted Line expires November 14, 2019 unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

The Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, along with commitment fees, that have been allocated among the Participating Funds based on average daily net assets. During the period ended July 31, 2019, the Fund did not utilize this facility.

9.  Capital Share Transactions

The tables below summarize the activity in capital shares for each Class of the Fund:

	Institutional Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Crescent Short Duration High Income Fund	Shares			Amount			Shares			Amount
Shares sold		100,258		$	931,152			872,633		$	8,204,743
Reinvestment of dividends		219,698			2,035,387			458,266			4,263,813
Shares redeemed		(282,401	)		(2,606,839	)		(468,729	)		(4,349,929	)
Net increase in shares outstanding		37,555		$	359,700			862,170		$	8,118,627
	Y Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Crescent Short Duration High Income Fund	Shares			Amount			Shares			Amount
Shares sold		69,857		$	645,297			106,191		$	993,231
Reinvestment of dividends		10,088			93,359			25,164			234,241
Shares redeemed		(174,628	)		(1,615,819	)		(268,217	)		(2,513,830	)
Net (decrease) in shares outstanding		(94,683	)	$	(877,163	)		(136,862	)	$	(1,286,358	)
	Investor Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Crescent Short Duration High Income Fund	Shares			Amount			Shares			Amount
Shares sold		76,102		$	703,929			49		$	451
Reinvestment of dividends		1,435			13,300			3,738			34,885
Shares redeemed		(80,145	)		(741,242	)		(42,354	)		(397,712	)
Net (decrease) in shares outstanding		(2,608	)	$	(24,013	)		(38,567	)	$	(362,376	)
	A Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Crescent Short Duration High Income Fund	Shares			Amount			Shares			Amount
Shares sold		12		$	110			706,492		$	6,385,353
Reinvestment of dividends		2,950			27,272			6,212			57,728
Shares redeemed		(50,628	)		(465,171	)		(697,093	)		(6,279,757	)
Net increase (decrease) in shares outstanding		(47,666	)	$	(437,789	)		15,611		$	163,324

41

American Beacon Crescent Short Duration High Income Fund^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

	C Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Crescent Short Duration High Income Fund	Shares			Amount			Shares			Amount
Shares sold		20,866		$	193,418			89,689		$	810,176
Reinvestment of dividends		815			7,554			2,148			19,943
Shares redeemed		(42,059	)		(387,188	)		(82,017	)		(750,011	)
Net increase (decrease) in shares outstanding		(20,378	)	$	(186,216	)		9,820		$	80,108

10.  Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

42

American Beacon Crescent Short Duration High Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Institutional Class
	Six Months Ended July 31,			Year Ended January 31,												October 1, 2014A to January 31,
	2019			2019			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	9.16		$	9.59		$	9.64		$	9.01		$	9.68		$	10.00
Income (loss) from investment operations:
Net investment income		(0.01	)		0.48			0.47			0.46			0.47			0.16
Net gains (losses) on investments (both realized and unrealized)		0.15			(0.43	)		(0.05	)		0.63			(0.67	)		(0.32	)
Total income (loss) from investment operations		0.14			0.05			0.42			1.09			(0.20	)		(0.16	)
Less distributions:
Dividends from net investment income		0.01			(0.48	)		(0.47	)		(0.46	)		(0.47	)		(0.16	)
Distributions from net realized gains		–			–			–			–			–			–
Total distributions		0.01			(0.48	)		(0.47	)		(0.46	)		(0.47	)		(0.16	)
Net asset value, end of period	$	9.31		$	9.16		$	9.59		$	9.64		$	9.01		$	9.68
Total returnB		4.14	%C		0.60	%		4.45	%		12.38	%		(2.23	)%		(1.65	)%C
Ratios and supplemental data:
Net assets, end of period	$	85,047,518		$	83,303,910		$	78,914,147		$	51,834,666		$	36,971,459		$	33,903,138
Ratios to average net assets:
Expenses, before reimbursements		1.06	%D		1.08	%		1.07	%		1.26	%		1.27	%		2.24	%D
Expenses, net of reimbursements		0.85	%D		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%D
Net investment income, before expense reimbursements		4.73	%D		4.92	%		4.66	%		4.51	%		4.41	%		3.37	%D
Net investment income, net of reimbursements		4.94	%D		5.15	%		4.89	%		4.93	%		4.83	%		4.76	%D
Portfolio turnover rate		55	%C		84	%		75	%		95	%		72	%		31	%C

^A Commencement of operations.

^B  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^C  Not annualized.

^D  Annualized.

See accompanying notes

43

American Beacon Crescent Short Duration High Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Y Class
	Six Months Ended July 31,			Year Ended January 31,												October 1, 2014A to January 31,
	2019			2019			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	9.15		$	9.58		$	9.63		$	9.00		$	9.68		$	10.00
Income (loss) from investment operations:
Net investment income		(0.01	)		0.49			0.46			0.45			0.46			0.15
Net gains (losses) on investments (both realized and unrealized)		0.16			(0.45	)		(0.05	)		0.63			(0.68	)		(0.32	)
Total income (loss) from investment operations		0.15			0.04			0.41			1.08			(0.22	)		(0.17	)
Less distributions:
Dividends from net investment income		0.01			(0.47	)		(0.46	)		(0.45	)		(0.46	)		(0.15	)
Distributions from net realized gains		-			-			-			-			-			-
Total distributions		0.01			(0.47	)		(0.46	)		(0.45	)		(0.46	)		(0.15	)
Net asset value, end of period	$	9.31		$	9.15		$	9.58		$	9.63		$	9.00		$	9.68
Total returnB		4.21	%C		0.49	%		4.33	%		12.27	%		(2.39	)%		(1.68	)%C
Ratios and supplemental data:
Net assets, end of period	$	3,560,866		$	4,369,096		$	5,883,759		$	6,277,416		$	8,481,991		$	98,343
Ratios to average net assets:
Expenses, before reimbursements		1.14	%D		1.14	%		1.14	%		1.36	%		1.29	%		7.71	%D
Expenses, net of reimbursements		0.95	%D		0.95	%		0.95	%		0.95	%		0.95	%		0.95	%D
Net investment income (loss), before expense reimbursements		4.65	%D		4.84	%		4.59	%		4.42	%		4.80	%		(2.11	)%D
Net investment income, net of reimbursements		4.84	%D		5.03	%		4.78	%		4.83	%		5.14	%		4.64	%D
Portfolio turnover rate		55	%C		84	%		75	%		95	%		72	%		31	%C

^A Commencement of operations.

^B Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^C Not annualized.

^D Annualized.

See accompanying notes

44

American Beacon Crescent Short Duration High Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Investor Class
	Six Months Ended July 31,			Year Ended January 31,												October 1, 2014A to January 31,
	2019			2019			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	9.17		$	9.59		$	9.64		$	9.01		$	9.69		$	10.00
Income (loss) from investment operations:
Net investment income		(0.01	)		0.45			0.44			0.43			0.44			0.14
Net gains (losses) on investments (both realized and unrealized)		0.15			(0.43	)		(0.06	)		0.63			(0.68	)		(0.31	)
Total income (loss) from investment operations		0.14			0.02			0.38			1.06			(0.24	)		(0.17	)
Less distributions:
Dividends from net investment income		0.01			(0.44	)		(0.43	)		(0.43	)		(0.44	)		(0.14	)
Distributions from net realized gains		–			–			–			–			-			–
Total distributions		0.01			(0.44	)		(0.43	)		(0.43	)		(0.44	)		(0.14	)
Net asset value, end of period	$	9.32		$	9.17		$	9.59		$	9.64		$	9.01		$	9.69
Total returnB		3.97	%C		0.28	%		4.04	%		11.96	%		(2.67	)%		(1.67	)%C
Ratios and supplemental data:
Net assets, end of period	$	567,941		$	582,797		$	979,646		$	2,679,338		$	3,560,159		$	189,898
Ratios to average net assets:
Expenses, before reimbursements		2.57	%D		2.31	%		1.39	%		1.56	%		1.46	%		6.21	%D
Expenses, net of reimbursements		1.23	%D		1.23	%		1.23	%		1.23	%		1.23	%		1.23	%D
Net investment income (loss), before expense reimbursements		3.22	%D		3.66	%		4.33	%		4.22	%		4.44	%		(0.41	)%D
Net investment income, net of reimbursements		4.56	%D		4.74	%		4.49	%		4.55	%		4.68	%		4.57	%D
Portfolio turnover rate		55	%C		84	%		75	%		95	%		72	%		31	%C

^A  Commencement of operations.

^B  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^C  Not annualized.

^D  Annualized.

See accompanying notes

45

American Beacon Crescent Short Duration High Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	A Class
	Six Months Ended July 31,			Year Ended January 31,												October 1, 2014A to January 31,
	2019			2019			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	9.14		$	9.58		$	9.63		$	9.00		$	9.68		$	10.00
Income (loss) from investment operations:
Net investment income		(0.01	)		0.43			0.43			0.43			0.43			0.14
Net gains (losses) on investments (both realized and unrealized)		0.16			(0.43	)		(0.05	)		0.63			(0.68	)		(0.32	)
Total income (loss) from investment operations		0.15			-			0.38			1.06			(0.25	)		(0.18	)
Less distributions:
Dividends from net investment income		0.01			(0.44	)		(0.43	)		(0.43	)		(0.43	)		(0.14	)
Distributions from net realized gains		-			-			-			-			-			-
Total distributions		0.01			(0.44	)		(0.43	)		(0.43	)		(0.43	)		(0.14	)
Net asset value, end of period	$	9.30		$	9.14		$	9.58		$	9.63		$	9.00		$	9.68
Total returnB		4.05	%C		0.02	%		4.02	%		11.94	%		(2.71	)%		(1.78	)%C
Ratios and supplemental data:
Net assets, end of period	$	1,295,759		$	1,710,171		$	1,642,414		$	1,183,362		$	1,033,329		$	98,255
Ratios to average net assets:
Expenses, before reimbursements		1.36	%D		1.39	%		1.46	%		1.66	%		1.55	%		7.97	%D
Expenses, net of reimbursements		1.25	%D		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%D
Net investment income (loss), before expense reimbursements		4.43	%D		4.48	%		4.26	%		4.13	%		4.28	%		(2.37	)%D
Net investment income, net of reimbursements		4.54	%D		4.62	%		4.47	%		4.54	%		4.59	%		4.36	%D
Portfolio turnover rate		55	%C		84	%		75	%		95	%		72	%		31	%C

^A  Commencement of operations.

^B  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^C  Not annualized.

^D  Annualized.

See accompanying notes

46

American Beacon Crescent Short Duration High Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	C Class
	Six Months Ended July 31,			Year Ended January 31,												October 1, 2014A to January 31,
	2019			2019			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	9.16		$	9.58		$	9.63		$	9.00		$	9.68		$	10.00
Income (loss) from investment operations:
Net investment income		-			0.37			0.36			0.35			0.36			0.12
Net gains (losses) on investments (both realized and unrealized)		0.14			(0.42	)		(0.05	)		0.63			(0.68	)		(0.32	)
Total income (loss) from investment operations		0.14			(0.05	)		0.31			0.98			(0.32	)		(0.20	)
Less distributions:
Dividends from net investment income		0.01			(0.37	)		(0.36	)		(0.35	)		(0.36	)		(0.12	)
Distributions from net realized gains		-			-			-			-			-			-
Total distributions		0.01			(0.37	)		(0.36	)		(0.35	)		(0.36	)		(0.12	)
Net asset value, end of period	$	9.31		$	9.16		$	9.58		$	9.63		$	9.00		$	9.68
Total returnB		3.55	%C		(0.49	)%		3.24	%		11.10	%		(3.40	)%		(2.03	)%C
Ratios and supplemental data:
Net assets, end of period	$	422,440		$	602,096		$	535,826		$	427,829		$	456,828		$	97,911
Ratios to average net assets:
Expenses, before reimbursements		2.14	%D		2.17	%		2.21	%		2.41	%		2.36	%		8.70	%D
Expenses, net of reimbursements		2.00	%D		2.00	%		2.00	%		2.00	%		2.00	%		2.00	%D
Net investment income (loss), before expense reimbursements		3.64	%D		3.86	%		3.51	%		3.37	%		3.76	%		(3.12	)%D
Net investment income, net of reimbursements		3.78	%D		4.03	%		3.71	%		3.78	%		4.12	%		3.59	%D
Portfolio turnover rate		55	%C		84	%		75	%		95	%		72	%		31	%C

^A  Commencement of operations.

^B  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^C  Not annualized.

^D  Annualized.

See accompanying notes

47

Disclosure Regarding Approval of the Management and Investment Advisory Agreements

July 31, 2019 (Unaudited)

Renewal and Approval of Management Agreement and Investment Advisory Agreement

At in-person meetings held on May 9, 2019 and June 4-5, 2019 (collectively, the “Meetings”), the Board of Trustees (“Board” or “Trustees”) considered and then, at its June 5, 2019 meeting, approved the renewal of:

(1) the Management Agreement between American Beacon Advisors, Inc. (“Manager”) and the American Beacon Funds (“Trust”), on behalf of the American Beacon Crescent Short Duration High Income Fund (“Fund”); and

(2) the Investment Advisory Agreement among the Manager, Crescent Capital Group LP (the “subadvisor”), and the Trust, on behalf of the Fund.

The Management Agreement and the Investment Advisory Agreement are referred to herein individually as an “Agreement” and collectively as the “Agreements.” In preparation for its consideration of the renewal of the Agreements, the Board undertook steps to gather and consider information furnished by the Manager, the subadvisor, Broadridge, Inc. (“Broadridge”) and Morningstar, Inc. (“Morningstar”). The Board, with the assistance of independent legal counsel, requested and received certain relevant information from the Manager and the subadvisor.

In advance of the Meetings, the Board’s Investment Committee and/or the Manager coordinated the production of information from Broadridge and Morningstar regarding the performance, fees and expenses of the Fund as well as information from the Manager and the subadvisor. At the Meetings, the Board considered the information provided in connection with the renewal process, as well as information furnished to the Board throughout the year at regular meetings of the Board and its committees. In connection with the Board’s consideration of the Agreements, the Board received and evaluated such information as they deemed necessary. This information is described below in the section summarizing the factors the Board considered in connection with its renewal and approval of the Agreements, as well as the section describing additional Board considerations with respect to the Fund.

The Board noted that the Manager provides management and administrative services to the Fund pursuant to the Management Agreement. The Board considered that many mutual funds have separate contracts governing each type of service and observed that, with respect to such mutual funds, the actual management fee rates provided by Broadridge for peer group funds reflect the combined advisory and administrative expenses, reduced by any fee waivers and/or reimbursements.

A firm may not have been able to, or opted not to, provide information in response to certain information requests, in which case the Board conducted its evaluation of the firm based on information that was provided. In such cases, the Board determined that the omission of any such information was not material to its considerations. The class of shares used for comparative performance purposes was the share class with the lowest expenses available for purchase by the general public, which was the Institutional Class. The Board also considered that the use of Institutional Class performance generally facilitates a meaningful comparison for expense and performance purposes.

Provided below is an overview of certain factors the Board considered in connection with its renewal and approval of the Agreements. The Board did not identify any particular information that was most relevant to its consideration to renew or approve each Agreement, and each Trustee may have afforded different weight to the various factors. Legal counsel to the independent Trustees provided the Board with a memorandum regarding its responsibilities pertaining to the renewal and approval of investment advisory contracts, such as the Agreements. The memorandum explained the regulatory requirements surrounding the Board’s process for evaluating investment advisors and the terms of investment advisory contracts. Based on its evaluation, the Board unanimously concluded that the terms of each Agreement were reasonable and fair and that the renewal and approval of each Agreement was in the best interests of the Fund and its shareholders.

48

Disclosure Regarding Approval of the Management and Investment Advisory Agreements

July 31, 2019 (Unaudited)

Considerations With Respect to the Renewal of the Management Agreement and the Investment Advisory Agreement

In determining whether to renew the Agreements, the Board considered the Fund’s investment management and subadvisory relationships separately. In each instance, the Board considered, among other things, the following factors: (1) the nature, extent and quality of the services provided; (2) the investment performance of the Fund; (3) the costs incurred by the Manager in rendering services to the Fund and its resulting profits or losses; (4) comparisons of services and fee rates with contracts entered into by the Manager or the subadvisor or their affiliates with other clients (such as pension funds and other institutional clients); (5) the extent to which economies of scale, if any, have been taken into account in setting each fee rate schedule; (6) whether fee rate levels reflect economies of scale, if any, for the benefit of Fund investors; and (7) any other benefits derived or anticipated to be derived by the Manager or the subadvisor from their relationships with the Fund.

Nature, Extent and Quality of Services. With respect to the renewal of the Management Agreement, the Board considered, among other factors: the Fund’s long-term performance; the length of service of key investment personnel at the Manager; the cost structure of the Fund; the Manager’s culture of compliance and support that reduce risks to the Fund; the Manager’s quality of services; the Manager’s active role in monitoring and, as appropriate, recommending additional or replacement subadvisors; and the Manager’s efforts to retain key employees and maintain staffing levels.

With respect to the renewal of the Investment Advisory Agreement, the Board considered the level of staffing and the size of the subadvisor. The Board also considered the adequacy of the resources committed to the Fund by the subadvisor, and whether those resources were commensurate with the needs of the Fund and are sufficient to sustain appropriate levels of performance and compliance needs. In this regard, the Board considered the financial stability of the subadvisor. The Board also considered the subadvisor’s representations regarding its compliance program and code of ethics. Based on the foregoing information, the Board concluded that the nature, extent and quality of the management and advisory services provided by the Manager and the subadvisor were appropriate for the Fund.

Investment Performance. The Board evaluated the comparative information provided by Broadridge and the Manager regarding the performance of the Fund relative to its Broadridge performance universe, Morningstar Category, and benchmark index, as well as the Fund’s Morningstar rating. The Board considered the information provided by Broadridge regarding Broadridge’s independent methodology for selecting the Fund’s Broadridge performance universe. The Board also considered that the performance universes selected by Broadridge may not provide appropriate comparisons for the Fund. In addition, the Board considered the performance reports and discussions with management at Board and Committee meetings throughout the year. The Board also evaluated the comparative information provided by the subadvisor regarding the performance of the Fund relative to the performance of composites of similar accounts managed by the subadvisor and the Fund’s benchmark index. In addition, the Board considered the Manager’s recommendation to continue to retain the subadvisor. A discussion regarding the Board’s considerations with respect to the Fund’s performance appears below under “Additional Considerations and Conclusions with Respect to the Fund.”

Costs of the Services Provided to the Fund and the Profits Realized by the Manager from its Relationship with the Fund. In analyzing the cost of services and profitability of the Manager, the Board considered the revenues earned and the expenses incurred by the Manager, before and after the payment of distribution-related expenses by the Manager. The profits or losses were noted at both an aggregate level for all funds within the group of mutual funds sponsored by the Manager (the “Fund Complex”) and at an individual Fund level, with the Manager sustaining a loss before and after the payment of distribution-related expenses by the Manager for the Fund. The Board also considered comparative information provided by the Manager regarding the Manager’s overall profitability with respect to the Fund Complex relative to the overall profitability of other firms in the mutual fund industry, as disclosed in publicly available sources. Although the Board noted that, in certain cases, the fee rates paid by other clients of the Manager are lower than the fee rates paid by the Fund, the Manager represented that,

49

Disclosure Regarding Approval of the Management and Investment Advisory Agreements

July 31, 2019 (Unaudited)

among other matters, the difference is attributable to the fact that the Manager does not perform administrative services for non-investment company clients and reflects the greater level of responsibility and regulatory requirements associated with managing the Fund.

The Board also noted that the Manager proposed to continue the expense waivers and reimbursements for the Fund that were in place during the last fiscal year. The Board further considered that, with respect to the Fund, the Management Agreement provides for the Manager to receive a management fee comprised of an annualized fee that is retained by the Manager. The Board also noted that certain share classes of the Fund maintain higher expense ratios in order to compensate third-party financial intermediaries.

In analyzing the fee rates charged by the subadvisor in connection with its investment advisory services to the Fund, the Board considered representations made by the subadvisor regarding the subadvisory fee rate schedule for a comparable client account. The Board did not request profitability data from the subadvisor because the Board did not view this data as imperative to its deliberations given the arm’s-length nature of the relationship between the Manager and the subadvisor with respect to the negotiation of subadvisory fee rates. In addition, the Board noted that the subadvisor may not account for its profits on an account-by-account basis and that different firms likely employ different methodologies in connection with these calculations.

Based on the foregoing information, the Board concluded that the profitability levels of the Manager were reasonable in light of the services performed by the Manager. A discussion regarding the Board’s considerations with respect to the Fund’s fee rates is set forth below under “Additional Considerations and Conclusions with Respect to the Fund.”

Economies of Scale. In considering the reasonableness of the management and investment advisory fees rates, the Board considered whether economies of scale will be realized as the Fund grows and whether fee rate levels reflect these economies of scale for the benefit of Fund shareholders. In this regard, the Board considered that the Manager has negotiated breakpoints in the subadvisory fee rate for the Fund.

In addition, the Board noted the Manager’s representation that the Management Agreement contains fee schedule breakpoints at higher asset levels with respect to the Fund. Based on the foregoing information, the Board concluded that the Manager and subadvisor fee rate schedules for the Fund provide for a reasonable sharing of benefits from any economies of scale with the Fund.

Benefits Derived from the Relationship with the Fund. The Board considered the “fall-out” or ancillary benefits that accrue to the Manager and/or the subadvisor as a result of the advisory relationships with the Fund, including greater exposure in the marketplace with respect to the Manager’s or the subadvisor’s investment process and expanding the level of assets under management by the Manager and the subadvisor. Based on the foregoing information, the Board concluded that the potential benefits accruing to the Manager and the subadvisor by virtue of their relationships with the Fund appear to be fair and reasonable.

Additional Considerations and Conclusions with Respect to the Fund

The performance comparisons below were made in comparison to the Fund’s Broadridge performance universe and Morningstar Category. With respect to the Broadridge performance universe, the 1^st Quintile represents the top 20 percent of the universe based on performance and the 5^th Quintile representing the bottom 20 percent of the universe based on performance. References below to the Fund’s Broadridge performance universe are to the universe of mutual funds with a comparable investment classification/objective included in the analysis provided by Broadridge. In reviewing the performance, the Trustees viewed longer-term performance over a full market cycle as the most important consideration, because relative performance over shorter periods may be significantly impacted by market or economic events and not necessarily reflective of manager skill.

50

Disclosure Regarding Approval of the Management and Investment Advisory Agreements

July 31, 2019 (Unaudited)

The expense comparisons below were made in comparison to the Fund’s Broadridge expense universe and Broadridge expense group, with the 1^st Quintile representing the lowest 20 percent of the universe or group based on lowest total expense and the 5^th Quintile representing the highest 20 percent of the universe or group based on highest total expense. References below to the Fund’s expense group and expense universe are to the respective group or universe of comparable mutual funds included in the analysis by Broadridge. A Broadridge expense group consists of the Fund and a representative sample of funds with similar operating structures and asset sizes, as selected by Broadridge. A Broadridge expense universe includes all funds in the investment classification/objective with a similar operating structure as the share class of the Fund included in the Broadridge comparative information and provides a broader view of expenses across the Fund’s investment classification/objective. The Board also considered the Fund’s Morningstar fee level category. In reviewing expenses, the Board considered the positive impact of fee waivers where applicable and the Manager’s agreement to continue the fee waivers. In addition, information regarding the subadvisor’s use of soft dollars was requested from the Manager and was considered by the Board.

In considering the renewal of the Management Agreement and the Investment Advisory Agreement with the subadvisor for the Fund, the Board considered the following additional factors:

Broadridge Total Expenses Excluding 12b-1 Fees and Morningstar Fee Level Ranking

Compared to Broadridge Expense Group	4th Quintile
Compared to Broadridge Expense Universe	5th Quintile
Morningstar Fee Level Ranking – Institutional Class	High Expense Ratio

Broadridge and Morningstar Performance Analysis (three-year period ended December 31, 2018)

Compared to Broadridge Performance Universe	5th Quintile
Compared to Morningstar Category	5th Quintile

The Board also considered: (1) information provided by the subadvisor regarding fee rates charged for managing an account in the same or a similar strategy as the subadvisor manages the Fund; (2) the Manager’s explanation that the Fund’s expense profile is attributable to the higher expenses associated with investments in the bank loan and private debt instruments in which the Fund invests as compared to the traditional high yield bonds in which the funds in the Fund’s Broadridge expense group, expense universe and Morningstar category primarily invest; (3) the favorable performance of traditional high yield bonds during the past three years and the fact that the Fund does not invest in these securities to the same extent as the funds in its Broadridge performance universe and Morningstar category; (4) that the Fund provides investors with the opportunity to gain exposure to bank loans and private debt through a Fund managed by the subadvisor; and (5) the Manager’s recommendation to continue to retain the subadvisor based upon, among other factors, the relatively brief period that this Fund has been in operation.

Based on these and other considerations, the Board: (1) concluded that the fees paid to the Manager and subadvisor under the Management and Investment Advisory Agreements are fair and reasonable; and (2) determined that the Fund and its shareholders would benefit from the Manager’s and subadvisor’s continued management of the Fund.

51

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52

Delivery of Documents

eDelivery is NOW AVAILABLE - Stop traditional mail delivery and receive your

shareholder reports and summary prospectus on-line. Sign up at

www.americanbeaconfunds.com

If you invest in the Fund through a financial institution, you may be able to receive the Fund’s regulatory mailings, such as the Prospectus, Annual Report and Semi-Annual Report, by e-mail. If you are interested in this option, please go to www.icsdelivery.com and search for your financial institution’s name or contact your financial institution directly.

To obtain more information about the Fund:

By E-mail:	On the Internet:
american_beacon.funds@ambeacon.com	Visit our website at www.americanbeaconfunds.com
By Telephone: Call (800) 658-5811	By Mail: American Beacon Funds P.O. Box 219643 Kansas City, MO 64121-9643
Availability of Quarterly Portfolio Schedules	Availability of Proxy Voting Policy and Records
In addition to the Schedule of Investments provided in each semi-annual and annual report, the Fund files a complete schedule of its portfolio holdings with the Securities and Exchange Commission (“SEC”) on Form N-Q as of the first and third fiscal quarters. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-2736. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling (800)-SEC-0330. A complete schedule of the Fund’s portfolio holdings is also available at www.americanbeaconfunds.com approximately sixty days after the end of each quarter.	A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Fund’s Statement of Additional Information, is available free of charge on the Fund’s website www.americanbeaconfunds.com and by calling 1-800-967-9009 or by accessing the SEC’s website at www.sec.gov. The Fund’s proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Fund’s Forms N-PX are available on the SEC’s website at www.sec.gov. The Fund’s proxy voting record may also be obtained by calling 1-800-967-9009.

Fund Service Providers:

CUSTODIAN State Street Bank and Trust Company Boston, Massachusetts TRANSFER AGENT DST Asset Manager Solutions, Inc. Quincy, Massachusetts INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP Boston, Massachusetts DISTRIBUTOR Resolute Investment Distributors, Inc. Irving, Texas

This report is prepared for shareholders of the American Beacon Funds and may be distributed to others only if preceded or accompanied by a current Prospectus or Summary Prospectus.

American Beacon Funds and American Beacon Crescent Short Duration High Income Fund are service marks of American Beacon Advisors, Inc.

SAR 7/19

About American Beacon Advisors

Since 1986, American Beacon Advisors has offered a variety of products and investment advisory services to numerous institutional and retail clients, including a variety of mutual funds, corporate cash management, and separate account management.

Our clients include defined benefit plans, defined contribution plans, foundations, endowments, corporations, financial planners, and other institutional investors. With American Beacon Advisors, you can put the experience of a multi-billion dollar asset management firm to work for your company.

FRONTIER MARKETS INCOME FUND

Investing in foreign, emerging and frontier market securities may involve heightened risk due to currency fluctuations and economic and political risks. Investing in derivative instruments involves liquidity, credit, interest rate and market risks. The use of fixed-income securities entails interest rate and credit risks. 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.

GLG TOTAL RETURN FUND

Investing in foreign and emerging market securities may involve heightened risk due to currency fluctuations and economic and political risks. Investing in derivative instruments involves liquidity, credit, interest rate and market risks. The use of fixed-income securities entails interest rate and credit risks. Because the Fund may invest in fewer issuers than a more diversified portfolio, the fluctuating value of a single holding may have a greater effect on the value of the Fund. The Fund may have high portfolio turnover risk, which could increase the Fund’s transaction costs and possibly have a negative impact on performance. 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.

Any opinions herein, including forecasts, reflect our judgment as of the end of the reporting period and are subject to change. Each advisor’s strategies and each Fund’s portfolio composition will change depending on economic and market conditions. This report is not a complete analysis of market conditions, and, therefore, should not be relied upon as investment advice. Although economic and market information has been compiled from reliable sources, American Beacon Advisors, Inc. makes no representation as to the completeness or accuracy of the statements contained herein.

American Beacon Funds July 31, 2019

Contents

President’s Message	1
Performance Overviews	2
Expense Examples	9
Schedules of Investments:
American Beacon Frontier Markets Income Fund	11
American Beacon GLG Total Return Fund	25
Financial Statements	30
Notes to Financial Statements	34
Financial Highlights:
American Beacon Frontier Markets Income Fund	66
American Beacon GLG Total Return Fund	71
Disclosure Regarding Approval of the Management and Investment Advisory Agreements	77

Additional Fund Information Back Cover

President’s Message

Dear Shareholders,   At American Beacon, we take our heritage as a fiduciary very seriously – and we apply that mindset to all aspects of our business as a fund manager. As a result, for more than 30 years, we have endeavored to:   u   Identify, engage and oversee the best money managers. As a manager of managers, our goal is to engage the most effective money managers for each asset class, investment style and market strategy we offer. We are committed to partnering with those we judge to be “the best of the best” when it comes to choosing sub-advisors for our mutual funds. Whether our due-diligence process results in the selection of one sub-advisor or multiple sub-advisors, we select those we believe show the greatest potential to help us meet the high standards you’ve come to expect.

u Offer a variety of innovative investment solutions. Our mutual funds – which span the domestic, international, global, frontier and emerging markets – are sub-advised by experienced money managers who employ distinctive, proprietary investment processes to manage assets through a variety of economic and market conditions. From offering some of the first multi-manager funds, one of the first retirement income funds and the first open-ended mutual fund in the U.S. to focus primarily on frontier-market debt, our robust history includes applying a disciplined, solutions-based approach to our product development process in an effort to help you grow your assets while mitigating risk.

u Provide a solutions-based approach to achieving long-term investment goals. We seek to provide investment solutions that might enable you to benefit from taking a more disciplined approach to investing. Our mutual funds provide access to institutional-quality, research-intensive investment managers with diverse processes and styles. Over the long run, having such access and spending time in the market – rather than trying to time the market – may better position you to reach your long-term investment goals during market upswings and potentially insulate against market downswings.

Our management approach is more than a concept; it’s the cornerstone of American Beacon’s culture. And we strive to employ it at every turn as we seek to provide a well-diversified line of investment solutions to help our shareholders seek long-term rewards.

Thank you for your continued interest in American Beacon. For additional information about our mutual funds or to access your account information, please visit our website at www.americanbeaconfunds.com.

Best Regards,

Gene L. Needles, Jr.

President

American Beacon Funds

1

American Beacon Frontier Markets Income Fund^SM

Performance Overview

July 31, 2019 (Unaudited)

The Investor Class of the American Beacon Frontier Markets Income Fund (the “Fund”) returned 6.49% for the six-month period ending July 31, 2019. The Fund underperformed the JPMorgan EMBI Global Diversified Index (the hard currency “Index”) return of 7.90% for the same period.

Average Annual Total Returns for the Period ended July 31, 2019
	Ticker	6 Months*			1 Year			3 Year			5 Years			Since Inception 2/25/2014
Institutional Class (1,3)	AGEIX		6.64	%		6.67	%		8.40	%		5.06	%		5.70	%
Y Class (1,3)	AGEYX		6.72	%		6.58	%		8.33	%		4.95	%		5.63	%
Investor Class (1,3)	AGEPX		6.49	%		6.23	%		8.02	%		4.68	%		5.34	%
A without Sales Charge (1,3)	AGUAX		6.62	%		6.31	%		7.97	%		4.64	%		5.30	%
A with Sales Charge (1,3)	AGUAX		1.58	%		1.29	%		6.23	%		3.64	%		4.35	%
C without Sales Charge (1,3)	AGECX		6.14	%		5.49	%		7.21	%		3.90	%		4.51	%
C with Sales Charge (1,3)	AGECX		5.14	%		4.49	%		7.21	%		3.90	%		4.51	%
JPMorgan EMBI Global Diversified Index (2)			7.90	%		10.98	%		5.27	%		5.47	%		6.42	%

* Not Annualized.

1. 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 calculated based on the published end of day net asset values 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, please call 1-800-967-9009 or visit www.americanbeaconfunds.com. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights. Performance prior to waiving fees was lower than actual returns shown for periods when fee waivers were in place for each Class. A portion of fees charged to the Institutional Class of the Fund was waived in 2014, partially recovered in 2015, waived in 2016 and partially recovered in 2019. A portion of fees charged to the Investor Class of the Fund was waived in 2014, partially recovered in 2015, waived in 2016, and fully recovered in 2017 and 2018. A portion of fees charged to the Y Class of the Fund was waived in 2014, partially recovered in 2015, waived in 2016 and 2018 and partially recovered in 2019. A portion of fees charged to the A Class of the Fund was waived in 2014, partially recovered in 2015, waived in 2016, partially recovered in 2018 and waived in 2019. A portion of fees charged to the C Class of the Fund was waived from 2014 through 2016 and partially recovered in 2017 and 2018. A Class shares have a maximum sales charge of 4.75%. The maximum contingent deferred sales charge for the C Class is 1.00% for shares redeemed within one year of the date of purchase.

2. The JPMorgan EMBI Global Diversified Index is an emerging market debt benchmark that tracks dollar-denominated bonds issued by frontier and emerging market governments. One cannot directly invest in an index.

3. The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the Institutional, Y, Investor, A, and C Class shares were 1.19%, 1.28%, 1.51%, 1.52% and 2.27%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Emerging market (“EM”) debt generally produced attractive returns over the six-month period ended July 31, 2019. After a strong start to 2019, markets delivered reasonable performance until concerns over the economic picture in Argentina and elections in Turkey and South Africa caused uncertainty. For additional comparison, the JP Morgan GBI-EM Global Diversified Index (denominated in local-currency) returned 4.05% for the period reflecting weakness in local currencies relative to the U.S. dollar. The Fund held nearly 50% of its investments in local currency issues during the period.

Escalating trade tensions between the U.S. and China, and subsequently between the U.S. and Mexico, also shook markets. However, a resumption of trade negotiations between the U.S. and China in June provided a welcome respite for EM assets. A dovish tilt from the U.S. Federal Reserve (the “Fed”) and European Central Bank also drove performance. Indeed, the Fed lowered interest rates by 0.25% at the end of July — its first cut in over a decade. The Fed cited risks from a weak global economy and muted inflation pressures at home.

Within frontier-market debt, African credits were among the strongest performers over the reporting period amid the risk-on environment at the start of 2019. This included Kenya, Nigeria, Angola and Senegal. In contrast,

2

American Beacon Frontier Markets Income Fund^SM

Performance Overview

July 31, 2019 (Unaudited)

Mozambique struggled as a restructuring deal for its Eurobond was delayed due to new information on secret loans and the corruption surrounding them. However, Mozambique subsequently recovered as authorities reached a creditor-friendly agreement in principle on its bonds maturing in 2023. Meanwhile, Zambia lagged throughout the reporting period as concerns lingered about whether the country would be able to avoid a default on its sovereign debt in coming months.

Frontier markets tend to lag the more widely held emerging markets during strong risk-on rallies, which contributed to the Fund’s underperformance during the period. The Fund’s top performing countries during the period were Costa Rica, Kenya, Ukraine and Egypt. Countries that detracted from the Fund’s relative performance were Ghana, Georgia, Argentina and Uruguay.

Overall, the sub-advisors’ investment processes involve top-down approaches that assess macroeconomic factors affecting the relationships between developed, emerging and frontier countries, combined with bottom-up approaches to determine the countries in which the Fund will make investments. This investment process has remained consistent since the subadvisors’ inceptions with the Fund.

3

American Beacon Frontier Markets Income Fund^SM

Performance Overview

July 31, 2019 (Unaudited)

Top Ten Holdings (% Net Assets)
Kenya Infrastructure Bond, 12.500%, Due 1/10/2033, Series 15YR		1.8
Ivory Coast Government International Bond, 5.750%, Due 12/31/2032		1.5
Dominican Republic International Bond, 8.900%, Due 2/15/2023		1.4
Egypt Treasury Bills, 17.847%, Due 1/21/2020, Series 364D		1.4
Gabon Government International Bond, 6.375%, Due 12/12/2024		1.4
Nigeria Government Bond, 16.288%, Due 3/17/2027, Series 10YR		1.4
Angolan Government International Bond, 9.500%, Due 11/12/2025		1.3
Rwanda International Government Bond, 6.625%, Due 5/2/2023		1.2
Mongolia Government International Bond, 8.750%, Due 3/9/2024		1.1
Senegal Government International Bond, 4.750%, Due 3/13/2028		1.1
Total Fund Holdings	238
Sector Allocation (% Investments)
Foreign Sovereign Obligations		82.7
Credit-Linked Notes		9.7
Financial		2.8
Industrial		1.6
Energy		1.1
Consumer, Non-Cyclical		0.7
Basic Materials		0.6
Communications		0.5
Diversified		0.2
Utilities		0.1

4

American Beacon Frontier Markets Income Fund^SM

Performance Overview

July 31, 2019 (Unaudited)

Country Allocation (% Investments)
Nigeria	6.5
Egypt	6.4
Ghana	4.6
Kenya	4.6
Sri Lanka	4.4
Ivory Coast	4.3
Costa Rica	4.2
Dominican Republic	4.1
Ecuador	4.1
Ukraine	3.8
Angola	3.7
Zambia	3.0
Argentina	2.9
Iraq	2.9
Senegal	2.9
Uganda	2.6
Belarus	2.4
Gabon	2.2
Supranational	2.2
Mongolia	2.0
El Salvador	1.7
Mozambique	1.7
Georgia	1.4
Netherlands	1.4
Rwanda	1.4
United States	1.4
Tunisia	1.3
Kyrgyzstan	1.1
Tajikistan	1.1
Nicaragua	1.0
Papua New Guinea	1.0
Cameroon	0.9
Pakistan	0.9
Uzbekistan	0.9
Armenia	0.8
Belize	0.8
Republic of Mauritius	0.8
Uruguay	0.8
Ethiopia	0.7
Lebanon	0.7
Azerbaijan	0.6
Paraguay	0.5
Bahrain	0.4
South Africa	0.4
Spain	0.4
Malawi	0.3
Suriname	0.3
Togo	0.3
Gambia	0.2
Honduras	0.2
Jamaica	0.2
Singapore	0.2
United Republic of Tanzania	0.2
Barbados	0.1
Kazakhstan	0.1

5

American Beacon GLG Total Return Fund^SM

Performance Overview

July 31, 2019 (Unaudited)

The Investor Class of the American Beacon GLG Total Return Fund (the “Fund”) returned -0.70% for the six-month period ended July 31, 2019. The Fund underperformed the ICE BofAML U.S. Dollar LIBOR 3-Month Constant Maturity Index (the “Index”) return of 1.38% for the same period. For additional comparison, the JPMorgan EMBI Global Index (hard currency) returned 7.14%, and the JPMorgan GBI-EM Global Diversified Index (local currency) returned 4.05%.

Average Annual Total Returns for the Period ended July 31, 2019
	Ticker	6 Months*			1 Year			3 Year			Since Inception (05/20/2016)
Institutional Class (1,3)	GLGIX		(0.49	)%		(3.16	)%		1.57	%		2.21	%
Y Class (1,3)	GLGYX		(0.50	)%		(3.28	)%		1.39	%		2.04	%
Investor Class (1,3)	GLGPX		(0.70	)%		(3.60	)%		1.12	%		1.76	%
A without Sales Charge (1,3)	GLGAX		(0.70	)%		(3.70	)%		1.09	%		1.73	%
A Class with Sales Charge (1,3)	GLGAX		(5.41	)%		(8.31	)%		(0.54	)%		0.19	%
C without Sales Charge (1,3)	GLGCX		(1.11	)%		(4.38	)%		0.33	%		0.98	%
C Class with Sales Charge (1,3)	GLGCX		(2.11	)%		(5.38	)%		0.33	%		0.98	%
Ultra Class (1,3)	GLGUX		(0.49	)%		(3.16	)%		1.59	%		2.23	%
ICE BofAML U.S. Dollar LIBOR 3-Month LIBOR Constant Maturity Index (2)			1.38	%		2.61	%		1.72	%		1.64	%
JPMorgan EMBI Global Index (2)			7.14	%		10.33	%		4.51	%		6.00	%

* Not Annualized.

1. 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 calculated based on the published end of day net asset values as of the 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, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights. A portion of fees charged to the Institutional, A and C Classes of the Fund was waived from Fund inception through 2017 and partially recovered in 2018 and 2019. Performance prior to waiving fees was lower than actual returns shown through 2017. A portion of fees charged to the Investor and Ultra Classes of the Fund has been waived since Fund inception. Performance prior to waiving fees was lower than actual returns shown since inception. A portion of fees charged to the Y Class of the Fund was waived from Fund inception through 2018 and partially recovered in 2019. Performance prior to waiving fees was lower than actual returns shown through 2018. A Class shares have a maximum sales charge of 4.75%. The maximum contingent deferred sales charge for the C Class is 1.00% for shares redeemed within one year of the date of purchase.

2. The ICE BofAML U.S. Dollar LIBOR 3-Month LIBOR Constant Maturity Index represents the London Interbank Offered Rate (LIBOR) with a constant 3-month average maturity. LIBOR is a composite of the rates of interest at which banks borrow from one another in the London market, and it is a widely used benchmark for short-term interest rates. The JPMorgan EMBI Global Index is an emerging market debt benchmark that tracks dollar-denominated bonds issued by emerging market governments. One cannot directly invest in an index.

3. The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the Institutional, Y, Investor, A, C, and Ultra Class shares were 1.03%, 1.05%, 1.80%, 1.31%, 2.06% and 1.05%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Emerging-market debt rebounded during the period as the Fed and other central banks embraced accommodative monetary policy given global economic and political uncertainties. The support gave investors confidence to return to investments they fled during the volatile fourth quarter of 2018. Strong investor demand and slowing global economies led interest rates to decline in many countries generating attractive returns among the bond indices. Hard currency bonds outperformed local currency issues, reflecting a desire among investors to earn higher yield within the safety of hard currencies. Additionally, accommodation among central banks gave emerging market countries flexibility to lower their own interest rates, which put pressure on currencies.

The Fund, however, maintained its defensive posture toward the credit and currency markets based on fundamental valuations, crowded investor positioning and other macroeconomic inputs. While the recent central bank action has supported the markets, the Fund’s sub-advisor anticipates that the ultimate removal of excess liquidity will cause investors to pull assets from the risky investments they sought during the era of easy money. The conditions that favored emerging markets debt for so long are expected to gradually change.

6

American Beacon GLG Total Return Fund^SM

Performance Overview

July 31, 2019 (Unaudited)

In the meantime, the Fund seeks to invest selectively in opportunities to generate income while maintaining a highly defensive posture. The Fund’s weighted average duration continued to remain near zero during the period as well.

Ultimately, the Fund seeks to generate attractive long-term results with lower volatility than that of the emerging market indices. However, the Fund’s performance should be examined over a full-market cycle as the sub-advisor’s consistent top-down approach and fundamental bottom-up analysis combines with a flexible investment strategy that is expected to produce attractive risk-adjusted returns over time.

7

American Beacon GLG Total Return Fund^SM

Performance Overview

July 31, 2019 (Unaudited)

Top Ten Holdings (% Net Assets)*
U.S. Treasury Bills, 2.035%, Due 11/7/2019	26.5
U.S. Treasury Bills, 2.203%, Due 10/17/2019	24.8
U.S. Treasury Bills, 2.175%, Due 10/10/2019	19.8
U.S. Treasury Bills, 1.966%, Due 10/31/2019	16.2
Republic of South Africa Government International Bond, 5.500%, Due 3/9/2020	3.9
Petroleos Mexicanos, 6.000%, Due 3/5/2020	2.7
U.S. Treasury Bills, 2.024%, Due 11/14/2019	0.8

* Due to the number of securities in the Fund at period end, the table above may not be fully populated.

Total Fund Holdings 2

		Fund	1
Sector Exposures (%)	Long/(Short)
Foreign Sovereign		3.9
South Africa	3.9
Foreign Corporate Obligations		2.7
Energy	2.7
Cash & Cash Equivalent		88.1
U.S. dollar denominated.

1 Percentages represent the Fund’s risk-based, notional exposure as a percentage of the Fund’s total net assets. Due to the use of derivative instruments, which typically introduce leverage, percentages may not add to 100%.

Country Allocation (% Investments)
United States	93.0
South Africa	4.1
Mexico	2.9

8

American Beacon Funds^SM

Expense Examples

July 31, 2019 (Unaudited)

Fund Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees, if applicable, and (2) ongoing costs, including management fees, distribution (12b-1) fees, sub-transfer agent fees, and other Fund expenses. The Examples are intended to help you understand the ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from February 1, 2019 through July 31, 2019.

Actual Expenses

The “Actual” lines of the tables provide information about actual account values and actual expenses. You may use the information on this page, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = $8.60), then multiply the result by the “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. Shareholders of the Investor and Institutional Classes that invest in the Fund through an IRA or Roth IRA may be subject to a custodial IRA fee of $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 higher.

Hypothetical Example for Comparison Purposes

The “Hypothetical” lines of the tables provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed 5% per year rate of return before expenses (not the Fund’s actual return). You may compare the ongoing costs of investing in the Fund with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Shareholders of the Investor and Institutional Classes that invest in the Funds through an IRA or Roth IRA may be subject to a custodial IRA fee of $15 that is typically deducted each December. If your account was subject to a custodial IRA fee during the period, your costs would have been $15 higher.

You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs charged by the Fund, such as sales charges (loads) or redemption fees, as applicable. Similarly, the expense examples for other funds do not reflect any transaction costs charged by those funds, such as sales charges (loads), redemption fees or exchange fees. Therefore, the “Hypothetical” lines of the tables are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If you were subject to any transaction costs during the period, your costs would have been higher.

9

American Beacon Funds^SM

Expense Examples

July 31, 2019 (Unaudited)

American Beacon Frontier Markets Income Fund
	Beginning Account Value 2/1/2019		Ending Account Value 7/31/2019		Expenses Paid During Period 2/1/2019-7/31/2019*
Institutional Class
Actual		$1,000.00		$1,066.40		$5.89
Hypothetical**		$1,000.00		$1,019.09		$5.76
Y Class
Actual		$1,000.00		$1,067.20		$6.10
Hypothetical**		$1,000.00		$1,018.89		$5.96
Investor Class
Actual		$1,000.00		$1,064.90		$7.42
Hypothetical**		$1,000.00		$1,017.60		$7.25
A Class
Actual		$1,000.00		$1,066.20		$6.40
Hypothetical**		$1,000.00		$1,018.60		$6.26
C Class
Actual		$1,000.00		$1,061.40		$10.89
Hypothetical**		$1,000.00		$1,014.23		$10.64

* Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 1.15%, 1.19%, 1.45%, 1.25%, and 2.13% for the Institutional, Y, Investor, A, and C Classes, respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half-year period.

** 5% return before expenses.

American Beacon GLG Total Return Fund
	Beginning Account Value 2/1/2019		Ending Account Value 7/31/2019		Expenses Paid During Period 2/1/2019-7/31/2019*
Institutional Class
Actual		$1,000.00		$995.10		$5.39
Hypothetical**		$1,000.00		$1,019.39		$5.46
Y Class
Actual		$1,000.00		$995.00		$5.89
Hypothetical**		$1,000.00		$1,018.89		$5.96
Investor Class
Actual		$1,000.00		$993.00		$7.26
Hypothetical**		$1,000.00		$1,017.51		$7.35
A Class
Actual		$1,000.00		$993.00		$7.36
Hypothetical**		$1,000.00		$1,017.41		$7.45
C Class
Actual		$1,000.00		$988.90		$11.05
Hypothetical**		$1,000.00		$1,013.69		$11.18
Ultra Class
Actual		$1,000.00		$995.10		$4.90
Hypothetical**		$1,000.00		$1,019.89		$4.96

* Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 1.09%, 1.19%, 1.47%, 1.49%, 2.24%, and 0.99% for the Institutional, Y, Investor, A, C, and Ultra Classes, respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half-year period.

** 5% return before expenses.

10

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount*			Fair Value
Angola - 3.28%
Credit-Linked Notes - 0.20%
Republic of Angola (Issuer Aurora Australis B.V.), 8.527%, Due 12/19/2023, (6-mo. USD LIBOR + 6.250%)A B		$	843,750		$	849,561
Foreign Sovereign Obligations - 3.08%
Angolan Government International Bond,
9.500%, Due 11/12/2025B			4,950,000			5,729,625
8.250%, Due 5/9/2028B			822,000			873,929
8.250%, Due 5/9/2028B			3,873,000			4,117,673
9.375%, Due 5/8/2048B			1,220,000			1,345,965
9.375%, Due 5/8/2048B			985,000			1,086,701
Total Foreign Sovereign Obligations						13,153,893
Total Angola (Cost $13,048,177)						14,003,454
Argentina - 2.30%
Foreign Sovereign Obligations - 2.30%
Argentina Bonar Bonds,
53.531%, Due 3/1/2020, (BADLARP Index + 3.250%)A		ARS	4,500,000			97,449
51.264%, Due 4/3/2022, (BADLARP Index + 2.000%)A		ARS	42,100,000			831,183
Argentina Treasury Bills,
3.685%, Due 2/28/2020		ARS	186,685,000			3,673,106
0.459%, Due 7/31/2020		ARS	61,897,641			1,158,654
Argentine Republic Government International Bond, 5.000%, Due 1/15/2027B		EUR	3,070,000			2,541,596
Provincia de Buenos Aires,
54.142%, Due 5/31/2022, (BADLARP Index + 3.830%)A		ARS	35,000,000			624,593
53.017%, Due 4/12/2025, (BADLARP Index + 3.750%)A B C		ARS	51,500,000			886,917
Total Foreign Sovereign Obligations						9,813,498
Total Argentina (Cost $13,448,450)						9,813,498
Armenia - 0.69% (Cost $2,830,138)
Foreign Sovereign Obligations - 0.69%
Republic of Armenia International Bond, 7.150%, Due 3/26/2025B			2,540,000			2,931,632
Azerbaijan - 0.47% (Cost $2,000,000)
Credit-Linked Notes - 0.47%
Republic of Azerbaijan (Issuer Frontera Capital B.V.), 14.000%, Due 3/30/2020, Series BC D			2,000,000			2,011,790
Bahrain - 0.39%
Foreign Corporate Obligations - 0.39%
Oil and Gas Holding Co. BSCC,
7.625%, Due 11/7/2024C			1,075,000			1,202,252
7.625%, Due 11/7/2024B			400,000			447,350
Total Foreign Corporate Obligations						1,649,602
Total Bahrain (Cost $1,591,316)						1,649,602
Barbados - 0.07% (Cost $293,464)
Foreign Corporate Obligations - 0.07%
Sagicor Finance Ltd., 8.875%, Due 8/11/2022B			279,000			292,949
Belarus - 2.08%
Foreign Sovereign Obligations - 2.08%
Development Bank of the Republic of Belarus JSC,
12.000%, Due 5/15/2022B		BYN	3,100,000			1,515,302
12.000%, Due 5/15/2022, Series 144AC		BYN	2,432,000			1,188,779
6.750%, Due 5/2/2024B			1,400,000			1,466,500
6.750%, Due 5/2/2024, Series 144AC			2,050,000			2,147,375
Republic of Belarus International Bond,
6.875%, Due 2/28/2023B			1,710,000			1,818,516
7.625%, Due 6/29/2027B			685,000			772,954
Total Foreign Sovereign Obligations						8,909,426
Total Belarus (Cost $8,621,379)						8,909,426

See accompanying notes

11

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount*			Fair Value
Belize - 0.71% (Cost $3,088,159)
Foreign Sovereign Obligations - 0.71%
Belize Government International Bond, 4.938%, Due 2/20/2034B E		$	4,970,600		$	3,038,279
Bosnia & Herzegovina - 0.02% (Cost $135,553)
Foreign Sovereign Obligations - 0.02%
Bosnia & Herzegovina Government International Bond, 0.500%, Due 12/20/2021, Series B, (6-mo. EUR LIBOR + 0.815%)A B F		EUR	208,333			102,588
Cameroon, United Republic Of - 0.81% (Cost $3,424,654)
Foreign Sovereign Obligations - 0.81%
Republic of Cameroon International Bond, 9.500%, Due 11/19/2025B			3,200,000			3,475,085
Costa Rica - 3.66%
Foreign Corporate Obligations - 0.15%
Autopistas del Sol S.A., 7.375%, Due 12/30/2030B			640,499			646,110
Foreign Sovereign Obligations - 3.51%
Costa Rica Government International Bond,
8.050%, Due 9/18/2024B		CRC	2,250,000,000			3,718,181
9.660%, Due 9/30/2026B		CRC	2,250,000,000			3,886,244
9.200%, Due 2/21/2029B			2,500,000			2,878,880
10.580%, Due 9/26/2029B		CRC	800,000,000			1,403,709
10.350%, Due 6/19/2030B		CRC	1,185,000,000			2,125,698
10.350%, Due 6/19/2030, Series 144AC		CRC	559,500,000			990,656
Total Foreign Sovereign Obligations						15,003,368
Total Costa Rica (Cost $14,797,663)						15,649,478
Dominican Republic - 3.56%
Foreign Sovereign Obligations - 3.56%
Dominican Republic Bond,
10.500%, Due 4/7/2023B		DOP	57,000,000			1,175,052
10.750%, Due 8/11/2028B		DOP	30,000,000			626,664
Dominican Republic International Bond,
8.900%, Due 2/15/2023B		DOP	303,500,000			5,959,378
11.500%, Due 5/10/2024B		DOP	200,000,000			4,323,544
9.750%, Due 6/5/2026B		DOP	76,450,000			1,549,713
9.750%, Due 6/5/2026, Series 144AC		DOP	78,000,000			1,581,132
Total Foreign Sovereign Obligations						15,215,483
Total Dominican Republic (Cost $15,636,262)						15,215,483
Ecuador - 3.56%
Foreign Sovereign Obligations - 3.56%
Ecuador Government International Bond,
10.500%, Due 3/24/2020B			200,000			206,752
10.500%, Due 3/24/2020B			517,000			534,454
10.750%, Due 3/28/2022B			1,130,000			1,250,074
8.750%, Due 6/2/2023B			1,200,000			1,291,800
7.950%, Due 6/20/2024B			1,570,000			1,632,800
9.650%, Due 12/13/2026B			1,550,000			1,670,125
9.625%, Due 6/2/2027B			500,000			534,375
8.875%, Due 10/23/2027B			1,200,000			1,237,500
7.875%, Due 1/23/2028B			1,645,000			1,612,100
10.750%, Due 1/31/2029B			700,000			784,000
10.750%, Due 1/31/2029, Series 144AC			3,950,000			4,424,000
EP PetroEcuador via Noble Sovereign Funding I Ltd., 7.979%, Due 9/24/2019, (3-mo. USD LIBOR + 5.630%)A B			26,316			26,381
Total Foreign Sovereign Obligations						15,204,361
Total Ecuador (Cost $14,993,674)						15,204,361

See accompanying notes

12

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount*			Fair Value
Egypt - 5.61%
Foreign Sovereign Obligations - 5.61%
Egypt Government Bond,
16.300%, Due 1/1/2023, Series 10YR		EGP	50,020,000		$	3,059,968
16.300%, Due 4/9/2024, Series 5YR		EGP	13,990,000			858,611
17.180%, Due 5/9/2027, Series 10YR		EGP	14,500,000			929,907
15.700%, Due 11/7/2027, Series 10YR		EGP	10,000,000			602,214
Egypt Government International Bond,
6.200%, Due 3/1/2024B		$	200,000			212,248
6.200%, Due 3/1/2024, Series 144AC			1,034,000			1,097,322
7.600%, Due 3/1/2029B			450,000			481,779
7.600%, Due 3/1/2029, Series 144AC			1,077,000			1,153,058
Egypt Treasury Bills,
17.806%, Due 8/20/2019, Series 364D		EGP	10,850,000			650,369
19.400%, Due 12/10/2019, Series 364D		EGP	58,000,000			3,296,041
17.728%, Due 12/17/2019, Series 273D		EGP	26,000,000			1,472,875
17.847%, Due 1/21/2020, Series 364D		EGP	104,000,000			5,800,329
17.133%, Due 4/14/2020, Series 364D		EGP	54,000,000			2,904,142
17.140%, Due 4/28/2020, Series 364D		EGP	27,000,000			1,443,758
Total Foreign Sovereign Obligations						23,962,621
Total Egypt (Cost $22,729,647)						23,962,621
El Salvador - 1.48%
Foreign Corporate Obligations - 0.05%
AES El Salvador Trust II, 6.750%, Due 3/28/2023B			200,000			198,000
Foreign Sovereign Obligations - 1.43%
El Salvador Government International Bond,
5.875%, Due 1/30/2025B			2,900,000			2,979,750
6.375%, Due 1/18/2027B			3,030,000			3,128,505
Total Foreign Sovereign Obligations						6,108,255
Total El Salvador (Cost $6,016,738)						6,306,255
Ethiopia - 0.61% (Cost $2,482,021)
Foreign Sovereign Obligations - 0.61%
Ethiopia International Bond, 6.625%, Due 12/11/2024B			2,500,000			2,594,850
Gabon - 1.90%
Foreign Sovereign Obligations - 1.90%
Gabon Government International Bond,
6.375%, Due 12/12/2024B			6,100,000			6,054,250
6.950%, Due 6/16/2025B			900,000			899,550
6.950%, Due 6/16/2025B			1,185,000			1,184,407
Total Foreign Sovereign Obligations						8,138,207
Total Gabon (Cost $7,978,232)						8,138,207
Gambia - 0.16% (Cost $686,645)
Credit-Linked Notes - 0.16%
Republic of Gambia (Issuer Zambezi B.V.), 11.180%, Due 9/11/2020C D			686,701			666,114
Georgia - 1.20%
Credit-Linked Notes - 0.52%
Georgia Government (Issuer Frontera Capital B.V.), 10.000%, Due 8/4/2021B D			513,100			502,095
Georgia Government (Issuer Zambezi B.V.), 9.500%, Due 8/9/2022C			2,000,000			1,751,166
Total Credit-Linked Notes						2,253,261
Foreign Corporate Obligations - 0.68%
Bank of Georgia JSC, 11.000%, Due 6/1/2020B		GEL	8,515,000			2,886,947
Total Georgia (Cost $5,641,560)						5,140,208

See accompanying notes

13

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount*			Fair Value
Ghana - 4.04%
Credit-Linked Notes - 0.06%
Ghana Promissory Notes (Issuer Saderea DAC), 12.500%, Due 11/30/2026B		$	223,891		$	246,926
Foreign Sovereign Obligations - 3.98%
Ghana Government Bonds,
21.500%, Due 3/9/2020, Series 3YR		GHS	915,000			173,419
18.250%, Due 9/21/2020, Series 3YR		GHS	640,000			118,617
16.500%, Due 3/22/2021, Series 3Y		GHS	22,800,000			4,116,762
24.750%, Due 7/19/2021, Series 5YR		GHS	6,280,000			1,269,921
18.750%, Due 1/24/2022, Series 5YR		GHS	2,000,000			369,607
19.700%, Due 5/23/2022, Series 3Y		GHS	1,400,000			262,417
18.250%, Due 7/25/2022, Series 5Y		GHS	16,125,000			2,920,604
16.500%, Due 2/6/2023, Series 5Y		GHS	8,200,000			1,416,863
21.000%, Due 1/27/2025		GHS	1,680,000			324,305
19.000%, Due 11/2/2026, Series 10Y		GHS	15,875,000			2,921,041
Ghana Government International Bond,
7.875%, Due 3/26/2027, Series 144AC			1,032,000			1,088,888
10.750%, Due 10/14/2030B			890,000			1,127,968
8.950%, Due 3/26/2051B			220,000			227,088
8.950%, Due 3/26/2051, Series 144AC			670,000			691,587
Total Foreign Sovereign Obligations						17,029,087
Total Ghana (Cost $19,685,357)						17,276,013
Honduras - 0.16% (Cost $654,324)
Foreign Corporate Obligations - 0.16%
Inversiones Atlantida S.A., 8.250%, Due 7/28/2022B			640,000			663,206
Iraq - 2.51%
Foreign Sovereign Obligations - 2.51%
Iraq International Bond,
6.752%, Due 3/9/2023B			3,080,000			3,188,170
6.752%, Due 3/9/2023B			2,144,000			2,219,297
5.800%, Due 1/15/2028B			1,750,000			1,736,875
5.800%, Due 1/15/2028B			3,600,000			3,573,000
Total Foreign Sovereign Obligations						10,717,342
Total Iraq (Cost $9,967,774)						10,717,342
Ivory Coast - 3.81%
Foreign Sovereign Obligations - 3.81%
Ivory Coast Government International Bond,
6.375%, Due 3/3/2028B			1,442,000			1,447,206
5.250%, Due 3/22/2030B		EUR	3,965,000			4,426,653
5.750%, Due 12/31/2032B E			6,388,800			6,254,316
5.750%, Due 12/31/2032B E			3,652,000			3,575,125
6.125%, Due 6/15/2033B			627,000			593,299
Total Foreign Sovereign Obligations						16,296,599
Total Ivory Coast (Cost $16,242,549)						16,296,599
Jamaica - 0.20%
Foreign Corporate Obligations - 0.04%
Digicel Group One Ltd., 8.250%, Due 12/30/2022C			187,975			114,782
Digicel Group Two Ltd., 8.250%, Due 9/30/2022C			172,294			34,459
Total Foreign Corporate Obligations						149,241
Foreign Sovereign Obligations - 0.16%
Jamaica Government International Bond, 6.750%, Due 4/28/2028			600,000			693,756
Total Jamaica (Cost $908,165)						842,997

See accompanying notes

14

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount*			Fair Value
Kazakhstan - 0.53%
Credit-Linked Notes - 0.12%
Development Bank of Kazakhstan JSC, 8.950%, Due 5/4/2023B		KZT	206,250,000		$	519,721
Foreign Corporate Obligations - 0.41%
Citigroup Global Markets Holdings, Inc.,
Due 2/10/2020B G		KZT	140,000,000			346,619
Due 3/17/2020B G		KZT	565,000,000			1,386,520
Total Corporate Obligations						1,733,139
Total Kazakhstan (Cost $1,766,894)						2,252,860
Kenya - 4.06%
Foreign Sovereign Obligations - 4.06%
Kenya Government International Bond, 7.250%, Due 2/28/2028B		$	3,000,000			3,120,456
Kenya Infrastructure Bond,
12.000%, Due 9/18/2023, Series 12YR		KES	57,400,000			555,789
11.000%, Due 12/2/2024, Series 9YR		KES	75,000,000			746,060
12.500%, Due 5/12/2025, Series 9YR		KES	36,000,000			377,409
11.000%, Due 10/12/2026, Series 12YR		KES	179,650,000			1,756,989
12.000%, Due 10/6/2031, Series 15YR		KES	288,000,000			2,919,739
12.500%, Due 1/10/2033, Series 15YR		KES	769,300,000			7,873,743
Total Foreign Sovereign Obligations						17,350,185
Total Kenya (Cost $17,007,433)						17,350,185
Kyrgyzstan - 0.99%
Credit-Linked Notes - 0.99%
Kyrgyz Republic (Issuer Frontera Capital B.V.), 8.000%, Due 1/31/2020C		KGS	132,958,171			1,978,635
Kyrgyz Republic (Issuer Zambezi B.V.), 10.000%, Due 4/13/2028C		KGS	180,000,000			2,262,439
Total Credit-Linked Notes						4,241,074
Total Kyrgyzstan (Cost $4,337,052)						4,241,074
Lebanon - 0.61%
Foreign Sovereign Obligations - 0.61%
Lebanon Government International Bond
6.650%, Due 4/22/2024B			670,000			544,375
6.200%, Due 2/26/2025, Series GMTNB			1,000,000			786,900
6.750%, Due 11/29/2027B			335,000			257,112
6.850%, Due 5/25/2029			1,000,000			758,000
7.250%, Due 3/23/2037B			335,000			254,014
Total Foreign Sovereign Obligations						2,600,401
Total Lebanon (Cost $2,642,276)						2,600,401
Malawi - 0.26% (Cost $1,098,653)
Credit-Linked Notes - 0.26%
Republic of Malawi (Issuer Zambezi B.V.), 12.000%, Due 10/8/2020C			1,100,000			1,129,985
Mongolia - 1.73%
Foreign Sovereign Obligations - 1.73%
Development Bank of Mongolia LLC,
7.250%, Due 10/23/2023B			725,000			758,350
7.250%, Due 10/23/2023C			600,000			627,600
Mongolia Government International Bond,
8.750%, Due 3/9/2024B			4,300,000			4,875,000
8.750%, Due 3/9/2024B			600,000			680,233
Trade & Development Bank of Mongolia LLC, 9.375%, Due 5/19/2020B			440,000			454,507
Total Foreign Sovereign Obligations						7,395,690
Total Mongolia (Cost $7,146,733)						7,395,690

See accompanying notes

15

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount*			Fair Value
Mozambique - 1.42%
Credit-Linked Notes - 0.97%
Mozambique Government Bonds (Issuer ICBC Standard Bank PLC), 27.000%, Due 2/26/2020		MZN	180,000,000		$	2,740,021
Republic of Mozambique (Issuer ICBC Standard Bank PLC), 19.000%, Due 3/28/2021B C D		MZN	90,500,000			1,440,661
Total Credit-Linked Notes						4,180,682
Foreign Sovereign Obligations - 0.45%
Mozambique International Bond, 10.500%, Due 1/18/2023B		$	1,900,000			1,905,700
Total Mozambique (Cost $5,946,212)						6,086,382
Netherlands - 1.26%
Foreign Corporate Obligations - 0.20%
Frontera Capital B.V., 8.000%, Due 5/26/2025		KGS	70,000,000			872,511
Foreign Sovereign Obligations - 1.06%
Nederlandse Financierings Maatschappij voor Ontwikkelingslanden N.V.,
7.350%, Due 9/11/2020, Series EMTNB			650,000			577,554
6.300%, Due 4/6/2021, Series EMTN, (3-mo. USD LIBOR - 0.200%)A			3,500,000			2,878,854
Republic of Angola Via Avenir II B.V.A B			1,125,000			1,077,936
Total Foreign Sovereign Obligations						4,534,344
Total Netherlands (Cost $6,120,081)						5,406,855
Nicaragua - 0.84%
Credit-Linked Notes - 0.84%
Empresa Administadora de Aeropuertos Internacionales (Issuer Zambezi B.V.), 7.000%, Due 4/8/2024C D			1,159,400			1,119,656
Republic of Nicaragua (Issuer Zambezi B.V.), 6.750%, Due 8/5/2022C			2,400,000			2,468,661
Total Credit-Linked Notes						3,588,317
Total Nicaragua (Cost $3,559,229)						3,588,317
Nigeria - 6.16%
Credit-Linked Notes - 0.35%
Republic of Nigeria (Issuer Citigroup Global Markets Holdings, Inc.), Due 7/21/2020G		NGN	603,079,110			1,497,930
Foreign Corporate Obligations - 1.26%
Access Bank PLC, 10.500%, Due 10/19/2021B			390,000			436,800
Citigroup Global Markets Holdings, Inc., Due 2/11/2020C G		NGN	184,912,323			480,761
IHS Netherlands Holdco B.V., 9.500%, Due 10/27/2021B			1,430,000			1,478,334
SEPLAT Petroleum Development Co. PLC, 9.250%, Due 4/1/2023B			1,380,000			1,469,700
United Bank for Africa PLC, 7.750%, Due 6/8/2022B			1,435,000			1,536,584
Total Foreign Corporate Obligations						5,402,179
Foreign Sovereign Obligations - 4.55%
Nigeria Government Bond,
15.540%, Due 2/13/2020, Series 5YR		NGN	310,000,000			874,162
14.500%, Due 7/15/2021, Series 5YR		NGN	839,000,000			2,399,922
12.750%, Due 4/27/2023, Series 5YR		NGN	87,000,000			238,244
12.500%, Due 1/22/2026, Series 10YR		NGN	431,600,000			1,136,993
16.288%, Due 3/17/2027, Series 10YR		NGN	1,896,560,000			5,889,938
13.980%, Due 2/23/2028, Series 10YR		NGN	560,000,000			1,571,710
16.250%, Due 4/18/2037, Series 20YR		NGN	888,958,000			2,858,899
Nigeria OMO Bills,
14.950%, Due 2/6/2020		NGN	582,000,000			1,516,390
15.642%, Due 2/6/2020		NGN	429,400,000			1,118,799
Nigeria Treasury Bills,
14.350%, Due 10/17/2019		NGN	70,000,000			188,951
14.317%, Due 2/27/2020, Series 364D		NGN	636,200,000			1,647,566
Total Foreign Sovereign Obligations						19,441,574
Total Nigeria (Cost $25,838,383)						26,341,683

See accompanying notes

16

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount*			Fair Value
Pakistan - 0.79%
Foreign Sovereign Obligations - 0.79%
Pakistan Government International Bond,
8.250%, Due 4/15/2024B		$	200,000		$	223,790
6.875%, Due 12/5/2027B			2,778,000			2,889,676
Pakistan Treasury Bills, 13.850%, Due 7/16/2020		PKR	50,000,000			276,647
Total Foreign Sovereign Obligations						3,390,113
Total Pakistan (Cost $3,207,667)						3,390,113
Papua New Guinea - 0.84%
Foreign Sovereign Obligations - 0.84%
Papua New Guinea Government International Bond,
8.375%, Due 10/4/2028B			2,996,000			3,235,680
8.375%, Due 10/4/2028C			334,000			360,720
Total Foreign Sovereign Obligations						3,596,400
Total Papua New Guinea (Cost $3,392,431)						3,596,400
Paraguay - 0.43% (Cost $2,000,426)
Credit-Linked Notes - 0.43%
Municipalidad De Asuncion (Issuer Zambezi B.V.), 11.000%, Due 3/23/2027C			2,000,000			1,832,243
Republic of Mauritius - 0.69% (Cost $2,952,941)
Foreign Corporate Obligations - 0.69%
HTA Group Ltd., 9.125%, Due 3/8/2022B			2,835,000			2,962,291
Rwanda - 1.21% (Cost $5,098,680)
Foreign Sovereign Obligations - 1.21%
Rwanda International Government Bond, 6.625%, Due 5/2/2023B			4,865,000			5,184,339
Senegal - 2.58%
Foreign Sovereign Obligations - 2.58%
Senegal Government International Bond,
6.250%, Due 7/30/2024B			1,750,000			1,906,520
4.750%, Due 3/13/2028B		EUR	4,215,000			4,869,109
6.250%, Due 5/23/2033B			1,500,000			1,485,825
6.750%, Due 3/13/2048B			2,860,000			2,743,941
Total Foreign Sovereign Obligations						11,005,395
Total Senegal (Cost $10,973,306)						11,005,395
Singapore - 0.18% (Cost $712,956)
Foreign Corporate Obligations - 0.18%
Puma International Financing S.A., 5.000%, Due 1/24/2016B			800,000			753,982
South Africa - 0.38%
Foreign Corporate Obligations - 0.38%
Liquid Telecommunications Financing PLC,
8.500%, Due 7/13/2022B			400,000			402,544
8.500%, Due 7/13/2022B			1,200,000			1,207,632
Total Foreign Corporate Obligations						1,610,176
Total South Africa (Cost $1,635,623)						1,610,176
Spain - 0.34% (Cost $1,383,624)
Foreign Corporate Obligations - 0.34%
International Airport Finance S.A., 12.000%, Due 3/15/2033C			1,274,000			1,431,976

See accompanying notes

17

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount*			Fair Value
Sri Lanka - 3.83%
Foreign Sovereign Obligations - 3.83%
Sri Lanka Government Bonds,
9.250%, Due 5/1/2020		LKR	30,000,000		$	171,164
10.750%, Due 3/1/2021, Series A		LKR	26,000,000			151,731
9.000%, Due 5/1/2021, Series A		LKR	705,000,000			4,009,636
11.000%, Due 8/1/2021, Series A		LKR	470,000,000			2,768,148
9.450%, Due 10/15/2021		LKR	135,000,000			773,594
11.500%, Due 12/15/2021, Series A		LKR	149,000,000			890,326
11.500%, Due 5/15/2023, Series A		LKR	180,000,000			1,082,524
10.200%, Due 7/15/2023, Series A		LKR	60,000,000			347,494
11.400%, Due 1/1/2024, Series A		LKR	200,000,000			1,196,932
11.000%, Due 8/1/2024, Series A		LKR	315,000,000			1,863,299
11.500%, Due 9/1/2028		LKR	168,000,000			1,033,838
Sri Lanka Government International Bond,
6.850%, Due 3/14/2024B		$	280,000			287,700
6.350%, Due 6/28/2024, Series 144AC			246,000			247,599
7.850%, Due 3/14/2029B			305,000			316,801
7.550%, Due 3/28/2030, Series 144AC			1,220,000			1,241,283
Total Foreign Sovereign Obligations						16,382,069
Total Sri Lanka (Cost $17,628,919)						16,382,069
Supranational - 1.92%
Foreign Sovereign Obligations - 1.92%
European Bank for Reconstruction & Development,
13.750%, Due 10/9/2019B			285,714			212,746
8.000%, Due 2/27/2020B			1,200,000			1,209,972
9.800%, Due 3/19/2020B			700,000			672,862
9.500%, Due 6/21/2021B			500,000			490,930
International Bank for Reconstruction & Development, 9.500%, Due 10/19/2020		KZT	750,000,000			1,949,967
International Finance Corp., 9.500%, Due 5/31/2020		UZS	32,000,000,000			3,666,443
Total Foreign Sovereign Obligations						8,202,920
Total Supranational (Cost $8,694,653)						8,202,920
Suriname - 0.30% (Cost $1,409,361)
Foreign Sovereign Obligations - 0.30%
Suriname Government International Bond, 9.250%, Due 10/26/2026B			1,400,000			1,298,500
Tajikistan - 0.94%
Credit-Linked Notes - 0.23%
Republic of Tajikistan (Issuer Frontera Capital B.V.), 10.780%, Due 2/15/2023C			1,000,000			999,144
Foreign Sovereign Obligations - 0.71%
Republic of Tajikistan International Bond, 7.125%, Due 9/14/2027B			3,230,000			3,014,837
Total Tajikistan (Cost $4,202,644)						4,013,981
Togo - 0.28% (Cost $1,047,142)
Foreign Corporate Obligations - 0.28%
Ecobank Transnational, Inc., 9.500%, Due 4/18/2024C			1,034,000			1,174,490
Tunisia - 1.11%
Foreign Sovereign Obligations - 1.11%
Banque Centrale de Tunisie International Bond,
6.750%, Due 10/31/2023, Series 144AC		EUR	941,000			1,073,042
5.750%, Due 1/30/2025B			2,000,000			1,856,704
6.375%, Due 7/15/2026, Series 144AC		EUR	1,626,000			1,800,559
Total Foreign Sovereign Obligations						4,730,305
Total Tunisia (Cost $4,817,384)						4,730,305

See accompanying notes

18

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount*			Fair Value
Uganda - 2.32%
Foreign Sovereign Obligations - 2.32%
Republic of Uganda Government Bonds,
13.625%, Due 9/24/2019		UGX	723,000,000		$	196,048
11.000%, Due 1/21/2021, Series 10YR		UGX	2,800,000,000			746,851
18.375%, Due 2/18/2021, Series 5YR		UGX	1,000,000,000			293,519
16.500%, Due 5/13/2021, Series 5YR		UGX	4,355,000,000			1,253,665
16.750%, Due 10/28/2021		UGX	6,940,000,000			2,022,426
11.000%, Due 6/9/2022, Series 10YR		UGX	4,050,000,000			1,041,007
14.125%, Due 7/7/2022		UGX	8,300,000,000			2,289,441
19.500%, Due 12/18/2025, Series 10YR		UGX	4,000,000,000			1,326,900
16.000%, Due 5/6/2027		UGX	2,500,000,000			735,346
Total Foreign Sovereign Obligations						9,905,203
Total Uganda (Cost $9,967,559)						9,905,203
Ukraine - 3.58%
Credit-Linked Notes - 2.78%
Ukraine Government Bonds (Issuer Citigroup Global Markets Holdings, Inc.),
15.300%, Due 1/25/2021B		UAH	26,000,000			1,024,232
13.500%, Due 8/21/2020B		UAH	37,000,000			1,449,566
14.160%, Due 10/14/2022B		UAH	52,000,000			2,003,789
14.160%, Due 10/17/2022B		UAH	45,000,000			1,733,344
15.220%, Due 4/26/2023B		UAH	27,500,000			1,108,825
9.300%, Due 8/23/2023B		UAH	14,500,000			497,430
Ukraine Government Bonds (Issuer ICBC Standard Bank PLC),
15.740%, Due 1/17/2020B		UAH	32,000,000			1,257,376
14.910%, Due 10/14/2022		UAH	74,000,000			2,813,052
Total Credit-Linked Notes						11,887,614
Foreign Corporate Obligations - 0.69%
Kernel Holding S.A., 8.750%, Due 1/31/2022B		$	865,000			918,466
Metinvest B.V., 8.500%, Due 4/23/2026B			880,000			935,440
MHP Lux S.A., 6.950%, Due 4/3/2026B			1,060,000			1,087,761
Total Foreign Corporate Obligations						2,941,667
Foreign Sovereign Obligations - 0.11%
Ukraine Government Bond, 15.840%, Due 2/26/2025B		UAH	12,000,000			485,000
Total Ukraine (Cost $13,444,816)						15,314,281
United Republic of Tanzania - 0.17% (Cost $764,045)
Credit-Linked Notes - 0.17%
United Republic of Tanzania (Issuer Zambezi B.V.), 8.650%, Due 4/23/2021C		TZS	1,700,000,000			744,258
Uruguay - 0.74%
Foreign Sovereign Obligations - 0.74%
Uruguay Government International Bond,
9.875%, Due 6/20/2022B		UYU	48,203,000			1,418,805
8.500%, Due 3/15/2028B		UYU	65,802,000			1,725,751
Total Foreign Sovereign Obligations						3,144,556
Total Uruguay (Cost $3,998,153)						3,144,556
Uzbekistan - 0.77%
Foreign Sovereign Obligations - 0.77%
Republic of Uzbekistan Bond,
4.750%, Due 2/20/2024B			1,700,000			1,792,276
5.375%, Due 2/20/2029B			1,408,000			1,504,828
Total Foreign Sovereign Obligations						3,297,104
Total Uzbekistan (Cost $3,132,882)						3,297,104

See accompanying notes

19

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount*			Fair Value
Venezuela - 0.04% (Cost $269,875)
Foreign Corporate Obligations - 0.04%
Petroleos de Venezuela S.A., 6.000%, Due 5/16/2024B		$	1,250,000		$	175,000
Zambia - 2.61%
Foreign Corporate Obligations - 0.37%
First Quantum Minerals Ltd.,
7.250%, Due 4/1/2023B			815,000			806,850
6.875%, Due 3/1/2026B			800,000			756,000
Total Foreign Corporate Obligations						1,562,850
Foreign Sovereign Obligations - 2.24%
Zambia Government Bond,
11.000%, Due 8/31/2019, Series 5YR		ZMW	4,800,000			367,409
11.000%, Due 2/16/2020, Series 5YR		ZMW	500,000			35,591
11.000%, Due 5/26/2020, Series 5YR		ZMW	23,100,000			1,571,194
11.000%, Due 8/29/2021, Series 5YR		ZMW	21,000,000			1,176,236
12.000%, Due 5/23/2023, Series 7YR		ZMW	6,100,000			275,948
12.000%, Due 11/21/2023, Series 7YR		ZMW	14,900,000			642,830
12.000%, Due 4/23/2025, Series 7YR		ZMW	16,500,000			615,621
13.000%, Due 8/29/2026, Series 10YR		ZMW	42,500,000			1,554,272
13.000%, Due 12/18/2027, Series 10YR		ZMW	7,000,000			242,809
Zambia Government International Bond, 8.970%, Due 7/30/2027B			4,350,000			3,104,900
Total Foreign Sovereign Obligations						9,586,810
Total Zambia (Cost $16,945,661)						11,149,660
	Shares
SHORT-TERM INVESTMENTS - 10.30% (Cost $44,006,783)
Investment Companies - 10.30%
American Beacon U.S. Government Money Market Select Fund, Select Class, 2.28%H I			44,006,783			44,006,783
TOTAL INVESTMENTS - 97.47% (Cost $426,127,071)						416,601,494
OTHER ASSETS, NET OF LIABILITIES - 2.53%						10,795,928
TOTAL NET ASSETS - 100.00%					$	427,397,422
Percentages are stated as a percent of net assets. *In U.S. Dollars unless otherwise noted.

^A Variable, floating, or adjustable rate securities with an interest rate that changes periodically. Rates are periodically reset with rates that are based on a predetermined benchmark such as a widely followed interest rate such as T-bills, LIBOR or PRIME plus a fixed spread. The interest rate disclosed reflects the rate in effect on July 31, 2019.

^B Reg S - Security purchased under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.

^C Security exempt from registration under the Securities Act of 1933. These securities may be resold to qualified institutional buyers pursuant to Rule 144A. At the period end, the value of these securities amounted to $43,899,933 or 10.27% of net assets. The Fund has no right to demand registration of these securities.

^D Coupon rate may change based on changes of the underlying collateral or prepayments of principal. The coupon rate shown represents the rate at period end.

^E Step Up/Down - A zero coupon bond that converts to a fixed rate or variable interest rate at a designated future date. The rate disclosed represents the coupon rate at July 31, 2019. The maturity date disclosed represents the final maturity date.

^F Value was determined using significant unobservable inputs.

^G Zero coupon bond.

^H The Fund is affiliated by having the same investment advisor.

^I 7-day yield.

BADLARP - Benchmark rate provided by the Banco Central de la Republica Argentina.

LIBOR - London Interbank Offered Rate.

LLC - Limited Liability Company.

PLC - Public Limited Company.

PRIME - A rate, charged by banks, based on the U.S. Federal Funds rate.

See accompanying notes

20

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

Forward Foreign Currency Contracts Open on July 31, 2019:
Currency Purchased*		Currency Sold*		Settlement Date		Counterparty		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
USD	349,112	EUR	344,633		10/10/2019		BOA	$	4,479	$	-		$	4,479
USD	317,473	EUR	314,422		10/10/2019		BRC		3,051		-			3,051
KZT	96,142	USD	95,785		8/22/2019		CBK		357		-			357
KZT	100,598	USD	100,680		8/22/2019		CBK		-		(82	)		(82	)
KZT	117,261	USD	116,151		8/22/2019		CBK		1,110		-			1,110
UAH	168,384	USD	158,105		8/22/2019		CBK		10,279		-			10,279
KZT	170,168	USD	171,016		8/22/2019		CBK		-		(848	)		(848	)
KZT	180,266	USD	180,296		8/22/2019		CBK		-		(30	)		(30	)
UAH	181,343	USD	169,070		8/22/2019		CBK		12,273		-			12,273
UAH	215,076	USD	204,706		8/22/2019		CBK		10,370		-			10,370
KZT	239,891	USD	240,242		8/22/2019		CBK		-		(351	)		(351	)
UAH	267,908	USD	256,450		8/22/2019		CBK		11,458		-			11,458
UAH	290,117	USD	278,774		8/22/2019		CBK		11,343		-			11,343
UAH	300,325	USD	273,394		8/22/2019		CBK		26,931		-			26,931
UAH	363,604	USD	349,387		8/22/2019		CBK		14,217		-			14,217
UAH	1,781,575	USD	1,640,875		8/22/2019		CBK		140,700		-			140,700
KZT	1,920,549	USD	1,921,112		8/22/2019		CBK		-		(563	)		(563	)
UAH	1,788,991	USD	1,533,915		11/21/2019		CBK		255,076		-			255,076
GEL	458,673	USD	500,000		8/20/2019		ICBC		-		(41,327	)		(41,327	)
KZT	1,988,281	USD	2,000,000		9/4/2019		ICBC		-		(11,719	)		(11,719	)
KZT	1,224,020	USD	1,200,000		10/28/2019		ICBC		24,020		-			24,020
KZT	319,843	USD	317,460		11/7/2019		ICBC		2,383		-			2,383
KZT	2,017,945	USD	2,000,000		12/18/2019		ICBC		17,945		-			17,945
KZT	314,042	USD	311,527		2/7/2020		ICBC		2,515		-			2,515
KZT	496,469	USD	500,000		4/13/2020		ICBC		-		(3,531	)		(3,531	)
USD	4,738,272	EUR	4,673,811		10/10/2019		JPM		64,461		-			64,461
USD	6,738,686	EUR	6,649,413		8/16/2019		SSB		89,273		-			89,273
USD	1,429,680	EUR	1,412,102		10/10/2019		UAG		17,578		-			17,578
USD	647,935	EUR	641,153		10/10/2019		UAG		6,782		-			6,782
USD	163,400	EUR	161,127		10/10/2019		UAG		2,273		-			2,273
								$	728,874	$	(58,451	)	$	670,423

* All Values denominated in USD

Glossary:
Counterparty Abbreviations:
BOA	Merrill Lynch International
BRC	Barclays Bank PLC
CBK	Citibank, N.A.
ICBC	ICBC Standard Bank PLC
JPM	JPMorgan Chase Bank, N.A.
SSB	State Street Bank & Trust Co.
UAG	UBS AG

See accompanying notes

21

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

Currency Abbreviations:
ARS	Argentine Peso
BYN	Belarusian Ruble
CRC	Costa Rican Colon
DOP	Dominican Peso
EGP	Egyptian Pound
EUR	Euro
GEL	Georgian Lari
GHS	Ghanaian Cedi
KES	Kenyan Shilling
KGS	Kyrgyzstani Som
KZT	Kazakhstani Tenge
LKR	Sri Lankan Rupee
MZN	Mozambique Metical
NGN	Nigerian Naira
PKR	Pakistani Rupee
TZS	Tanzanian Shilling
UAH	Ukrainian Hryvnia
UGX	Ugandan Shilling
USD	United States Dollar
UYU	Uruguayan Peso
UZS	Uzbekistani Som
ZMW	Zambian Kwacha

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of July 31, 2019, the investments were classified as described below:

Frontier Markets Income Fund	Level 1		Level 2		Level 3		Total
Assets
Credit-Linked Notes
Angola	$	-	$	849,561	$	-	$	849,561
Azerbaijan		-		2,011,790		-		2,011,790
Gambia		-		666,114		-		666,114
Georgia		-		2,253,261		-		2,253,261
Ghana		-		246,926		-		246,926
Kazakhstan		-		519,721		-		519,721
Kyrgyzstan		-		4,241,074		-		4,241,074
Malawi		-		1,129,985		-		1,129,985
Mozambique		-		4,180,682		-		4,180,682
Nicaragua		-		3,588,317		-		3,588,317
Nigeria		-		1,497,930		-		1,497,930
Paraguay		-		1,832,243		-		1,832,243
Tajikistan		-		999,144		-		999,144
Ukraine		-		11,887,614		-		11,887,614
United Republic of Tanzania		-		744,258		-		744,258
Foreign Sovereign Obligations
Angola		-		13,153,893		-		13,153,893
Argentina		-		9,813,498		-		9,813,498
Armenia		-		2,931,632		-		2,931,632
Belarus		-		8,909,426		-		8,909,426
Belize		-		3,038,279		-		3,038,279
Bosnia & Herzegovina		-		-		102,588		102,588
Cameroon		-		3,475,085		-		3,475,085
Costa Rica		-		15,003,368		-		15,003,368
Dominican Republic		-		15,215,483		-		15,215,483
Ecuador		-		15,204,361		-		15,204,361
Egypt		-		23,962,621		-		23,962,621
El Salvador		-		6,108,255		-		6,108,255
Ethiopia		-		2,594,850		-		2,594,850
Gabon		-		8,138,207		-		8,138,207
Ghana		-		17,029,087		-		17,029,087

See accompanying notes

22

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

Frontier Markets Income Fund	Level 1		Level 2			Level 3		Total
Assets (continued)
Foreign Sovereign Obligations (continued)
Iraq	$	-	$	10,717,342		$	-	$	10,717,342
Ivory Coast		-		16,296,599			-		16,296,599
Jamaica		-		693,756			-		693,756
Kenya		-		17,350,185			-		17,350,185
Lebanon		-		2,600,401			-		2,600,401
Mongolia		-		7,395,690			-		7,395,690
Mozambique		-		1,905,700			-		1,905,700
Netherlands		-		4,534,344			-		4,534,344
Nigeria		-		19,441,574			-		19,441,574
Pakistan		-		3,390,113			-		3,390,113
Papua New Guinea		-		3,596,400			-		3,596,400
Rwanda		-		5,184,339			-		5,184,339
Senegal		-		11,005,395			-		11,005,395
Sri Lanka		-		16,382,069			-		16,382,069
Supranational		-		8,202,920			-		8,202,920
Suriname		-		1,298,500			-		1,298,500
Tajikistan		-		3,014,837			-		3,014,837
Tunisia		-		4,730,305			-		4,730,305
Uganda		-		9,905,203			-		9,905,203
Ukraine		-		485,000			-		485,000
Uruguay		-		3,144,556			-		3,144,556
Uzbekistan		-		3,297,104			-		3,297,104
Zambia		-		9,586,810			-		9,586,810
Foreign Corporate Obligations
Bahrain		-		1,649,602			-		1,649,602
Barbados		-		292,949			-		292,949
Costa Rica		-		646,110			-		646,110
El Salvador		-		198,000			-		198,000
Georgia		-		2,886,947			-		2,886,947
Honduras		-		663,206			-		663,206
Jamaica		-		149,241			-		149,241
Kazakhstan		-		1,733,139			-		1,733,139
Netherlands		-		872,511			-		872,511
Nigeria		-		5,402,179			-		5,402,179
Republic of Mauritius		-		2,962,291			-		2,962,291
Singapore		-		753,982			-		753,982
South Africa		-		1,610,176			-		1,610,176
Spain		-		1,431,976			-		1,431,976
Togo		-		1,174,490			-		1,174,490
Ukraine		-		2,941,667			-		2,941,667
Venezuela		-		175,000			-		175,000
Zambia		-		1,562,850			-		1,562,850
Short-Term Investments		44,006,783		-			-		44,006,783
Total Investments in Securities - Assets	$	44,006,783	$	372,492,123		$	102,588	$	416,601,494
Financial Derivative Instruments - Assets
Forward Foreign Currency Contracts	$	-	$	728,874		$	-	$	728,874
Total Financial Derivative Instruments - Assets	$	-	$	728,874		$	-	$	728,874
Financial Derivative Instruments - Liabilities
Forward Foreign Currency Contracts	$	-	$	(58,451	)	$	-	$	(58,451	)
Total Financial Derivative Instruments - Liabilities	$	-	$	(58,451	)	$	-	$	(58,451	)

U.S. GAAP requires transfers between all levels to/from level 3 be disclosed. During the period ended July 31, 2019, there were no transfers into or out of Level 3.

See accompanying notes

23

American Beacon Frontier Markets Income Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

The following table is a reconciliation of Level 3 assets within the Fund for which significant unobservable inputs were used to determine fair value. Transfers in or out of Level 3 represent the ending value of any security or instrument where a change in the level has occurred from the beginning to the end of the period:

Security Type	Balance as of 1/31/2019	Purchases		Sales	Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Transfer into Level 3		Transfer out of Level 3		Balance as of 7/31/2019		Unrealized Appreciation (Depreciation) at Period end**
Foreign Sovereign Obligations	$129,605	$	-	$(23,863)	$	1,551	$	(3,057	)	$	(1,648	)	$	-	$	-	$	102,588	$	(32,965	)

** Change in unrealized appreciation (depreciation) attributable to Level 3 securities held at period end. This balance is included in the change in unrealized appreciation (depreci ation) on the Statements of Operations.

The foreign government obligations, classified as Level 3, were valued using single broker quotes. The principal amount of these securities, valued at $102,588, have been deemed level 3 due to limited market transparency and/or lack of corroboration to support the quoted prices.

See accompanying notes

24

American Beacon GLG Total Return Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

	Principal Amount			Fair Value
Mexico - 2.74% (Cost $5,939,164)
Foreign Corporate Obligations - 2.74%
Petroleos Mexicanos, 6.000%, Due 3/5/2020		$	5,853,000		$	5,932,366
South Africa - 3.87% (Cost $8,429,228)
Foreign Sovereign Obligations - 3.87%
Republic of South Africa Government International Bond, 5.500%, Due 3/9/2020			8,300,000			8,403,750
	Shares
SHORT-TERM INVESTMENTS - 90.68%
Investment Companies - 2.55%
American Beacon U.S. Government Money Market Select Fund, Select Class, 2.28%A B			5,532,297			5,532,297
	Par Amount
U.S. Treasury Obligations - 88.13%
U.S. Treasury Bills,
2.175%, Due 10/10/2019		$	43,215,000			43,043,006
2.203%, Due 10/17/2019			54,000,000			53,764,361
1.966%, Due 10/31/2019			35,410,000			35,227,611
2.035%, Due 11/7/2019			57,700,000			57,379,534
2.024%, Due 11/14/2019			1,700,000			1,689,963
Total U.S. Treasury Obligations						191,104,475
Total Short-Term Investments (Cost $196,634,630)						196,636,772
TOTAL INVESTMENTS - 97.29% (Cost $211,003,022)						210,972,888
OTHER ASSETS, NET OF LIABILITIES - 2.71%						5,873,534
TOTAL NET ASSETS - 100.00%					$	216,846,422
Percentages are stated as a percent of net assets.

^A The Fund is affiliated by having the same investment advisor.

^B 7-day yield.

Centrally Cleared Swap Agreements Outstanding on July 31, 2019:
Interest Rate Swaps
Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate (%)	Expiration Date	Curr	Notional Amount(4) (000s)		Premiums Paid (Received)		Fair Value			Unrealized Appreciation (Depreciation)
Pay	1-Day BRL-CDI	8.65	1/4/2021	BRL		32,500	$	-	$	(555,309	)	$	(555,309	)
Pay	1-Day BRL-CDI	8.75	1/4/2021	BRL		24,500		-		(460,624	)		(460,624	)
Pay	1-Day BRL-CDI	9.17	1/4/2021	BRL		191,800		-		(4,174,307	)		(4,174,307	)
Pay	1-Day BRL-CDI	10.26	1/4/2021	BRL		80,900		-		(2,365,016	)		(2,365,016	)
Pay	1-Day BRL-CDI	9.84	1/4/2021	BRL		41,000		-		(1,080,465	)		(1,080,465	)
Receive	1-Day BRL-CDI	8.75	1/4/2021	BRL		24,500		456,660		460,624			3,964
Receive	1-Day BRL-CDI	9.17	1/4/2021	BRL		60,000		1,313,867		1,305,831			(8,036	)
							$	1,770,527	$	(6,869,266	)	$	(8,639,793	)

See accompanying notes

25

American Beacon GLG Total Return Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

Credit Default Swaps on Credit Indices - Buy Protection(1)
Index/Tranches	Fixed Rate (%)	Expiration Date	Implied Credit Spread at 7/31/2019(3) (%)	Curr	Notional Amount(4) (000s)		Premiums Paid (Received)			Fair Value			Unrealized Appreciation (Depreciation)
Federation Of Malaysia	1.00	6/20/2024	0.5000	USD		12,000	$	(297,331	)	$	(305,562	)	$	(8,231	)
Republic Of Brazil	1.00	6/20/2024	1.2800	USD		27,900		299,496			300,786			1,290
Republic Of Colombia	1.00	6/20/2024	0.8350	USD		36,750		(294,140	)		(291,662	)		2,478
Republic Of Indonesia	1.00	6/20/2024	0.8125	USD		26,300		(263,707	)		(290,511	)		(26,804	)
Republic of Korea	1.00	6/20/2024	0.2875	USD		3,400		(108,358	)		(117,710	)		(9,352	)
Republic Of South Africa	1.00	6/20/2024	1.7600	USD		27,100		844,856			869,717			24,861
Republic of Turkey	1.00	6/20/2024	3.6300	USD		18,981		2,037,095			2,067,519			30,424
							$	2,217,911		$	2,232,577		$	14,666
Credit Default Swaps on Credit Indices - Sell Protection(2)
Index/Tranches	Fixed Rate (%)	Expiration Date	Implied Credit Spread at 7/31/2019(3) (%)	Curr	Notional Amount(4) (000s)		Premiums Paid (Received)			Fair Value			Unrealized Appreciation (Depreciation)
Republic Of Colombia	1.00	6/20/2024	0.8350	USD		1,000	$	8,303		$	7,881		$	(422	)
Republic Of Indonesia	1.00	6/20/2024	0.8125	USD		1,000		10,330			10,990			660
							$	18,633		$	18,871		$	238

OTC Swap Agreements Outstanding on July 31, 2019:
Credit Default Swaps on Corporate and Sovereign Securities - Buy Protection(1)
Reference Entity	Counter- Party		Fixed Rate (%)	Expiration Date	Implied Credit Spread at 7/31/2019(3) (%)		Curr	Notional Amount(4) (000s)		Premiums Paid (Received)		Fair Value(5)			Unrealized Appreciation (Depreciation)
Lebanese Republic		BRC	1.00	12/20/2019		9.9997	USD		150	$	1,770	$	4,571		$	2,801
Republic of Kazakhstan		BRC	1.00	12/20/2021		0.3602	USD		5,000		73,912		(91,426	)		(165,338	)
Republic of Kazakhstan		CBK	1.00	12/20/2021		0.3602	USD		300		6,265		(5,486	)		(11,751	)
Lebanese Republic		BRC	1.00	6/20/2022		9.9997	USD		4,000		367,634		844,639			477,005
Lebanese Republic		BOA	1.00	12/20/2022		9.9997	USD		3,000		314,130		708,986			394,856
Lebanese Republic		BOA	1.00	12/20/2022		9.9997	USD		5,000		530,126		1,181,644			651,518
Lebanese Republic		DUB	1.00	12/20/2022		9.9997	USD		1,100		132,468		259,962			127,494
Lebanese Republic		DUB	1.00	12/20/2022		9.9997	USD		700		84,385		165,430			81,045
Lebanese Republic		DUB	1.00	12/20/2022		9.9997	USD		1,600		189,245		378,126			188,881
										$	1,699,935	$	3,446,446		$	1,746,511
Credit Default Swaps on Corporate and Sovereign Securities - Sell Protection(2)
Reference Entity	Counter- Party		Fixed Rate (%)	Expiration Date	Implied Credit Spread at 7/31/2019(3) (%)		Curr	Notional Amount(4) (000s)		Premiums Paid (Received)		Fair Value(5)			Unrealized Appreciation (Depreciation)
Republic of Philippines		BRC	1.00	12/20/2019		0.0916	USD		500	$	530	$	2,372		$	1,842
Republic of Philippines		BRC	1.00	12/20/2019		0.0916	USD		3,000		4,215		14,229			10,014
Republic of Colombia		HUS	1.00	12/20/2019		0.8350	USD		7,000		5,033		30,814			25,781
										$	9,778	$	47,415		$	37,637

⁽¹⁾ If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swaps agreements on corporate issues and sovereign issues of an emerging country as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular

See accompanying notes

26

American Beacon GLG Total Return Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The quoted market prices and resulting values for credit default swaps on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/ sold as of the period end. Increasing fair values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

Forward Foreign Currency Contracts Open on July 31, 2019:
Currency Purchased*		Currency Sold*		Settlement Date		Counterparty		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
ZAR	398,311	USD	400,000		8/8/2019		HUS	$	-	$	(1,689	)	$	(1,689	)
ZAR	486,945	USD	500,000		8/8/2019		HUS		-		(13,055	)		(13,055	)
ZAR	787,164	USD	800,000		8/8/2019		HUS		-		(12,836	)		(12,836	)
ZAR	1,257,918	USD	1,300,000		8/8/2019		HUS		-		(42,082	)		(42,082	)
ZAR	3,006,951	USD	2,900,000		8/8/2019		HUS		106,951		-			106,951
ZAR	3,349,507	USD	3,391,220		8/8/2019		HUS		-		(41,713	)		(41,713	)
ZAR	3,349,507	USD	3,390,861		8/8/2019		HUS		-		(41,354	)		(41,354	)
USD	9,570,001	ZAR	9,556,961		8/8/2019		HUS		13,040		-			13,040
USD	2,207,000	ZAR	2,203,532		8/8/2019		HUS		3,468		-			3,468
USD	880,550	ZAR	875,811		8/8/2019		HUS		4,739		-			4,739
ARS	429,226	USD	438,000		8/12/2019		HUS		-		(8,774	)		(8,774	)
ARS	429,325	USD	438,000		8/12/2019		HUS		-		(8,675	)		(8,675	)
ARS	429,916	USD	438,000		8/12/2019		HUS		-		(8,084	)		(8,084	)
ARS	856,572	USD	877,000		8/12/2019		HUS		-		(20,428	)		(20,428	)
USD	1,947,000	ARS	1,926,829		8/12/2019		HUS		20,171		-			20,171
ARS	453,581	USD	463,789		8/15/2019		HUS		-		(10,208	)		(10,208	)
ARS	5,264,840	USD	5,398,161		8/15/2019		HUS		-		(133,321	)		(133,321	)
USD	5,000,000	ARS	4,914,024		8/15/2019		HUS		85,976		-			85,976
ARS	6,897,261	USD	5,995,322		8/23/2019		HUS		901,939		-			901,939
USD	2,100,000	ARS	2,093,244		8/23/2019		HUS		6,756		-			6,756
USD	1,500,000	ARS	1,474,251		8/23/2019		HUS		25,749		-			25,749
ARS	9,505,433	USD	9,124,977		9/19/2019		HUS		380,456		-			380,456
USD	2,500,001	ARS	2,478,396		9/19/2019		HUS		21,605		-			21,605
USD	2,164,000	ARS	2,152,684		9/19/2019		HUS		11,316		-			11,316
USD	1,730,000	ARS	1,723,167		9/19/2019		HUS		6,833		-			6,833
COP	780,117	USD	800,000		9/24/2019		HUS		-		(19,883	)		(19,883	)
COP	1,259,792	USD	1,300,000		9/24/2019		HUS		-		(40,208	)		(40,208	)
COP	2,910,735	USD	2,900,000		9/24/2019		HUS		10,735		-			10,735
USD	4,126,459	COP	3,980,715		9/24/2019		HUS		145,744		-			145,744
USD	4,133,659	COP	3,980,692		9/24/2019		HUS		152,967		-			152,967
USD	4,125,460	COP	3,980,692		9/24/2019		HUS		144,768		-			144,768
IDR	799,776	USD	800,000		10/8/2019		HUS		-		(224	)		(224	)
IDR	807,312	USD	800,000		10/8/2019		HUS		7,312		-			7,312
IDR	2,393,888	USD	2,400,000		10/8/2019		HUS		-		(6,112	)		(6,112	)
IDR	5,168,584	USD	5,000,000		10/8/2019		HUS		168,584		-			168,584
USD	11,147,182	IDR	11,598,033		10/8/2019		HUS		-		(450,851	)		(450,851	)
USD	5,218,046	IDR	5,439,440		10/8/2019		HUS		-		(221,394	)		(221,394	)
USD	4,091,593	IDR	4,259,368		10/8/2019		HUS		-		(167,775	)		(167,775	)
ARS	1,989,956	USD	2,043,000		10/17/2019		HUS		-		(53,044	)		(53,044	)
ARS	19,659	USD	20,027		10/22/2019		HUS		-		(368	)		(368	)
ARS	1,049,373	USD	1,069,000		10/22/2019		HUS		-		(19,627	)		(19,627	)
ARS	1,571,939	USD	1,603,000		10/22/2019		HUS		-		(31,061	)		(31,061	)
ARS	1,574,551	USD	1,604,000		10/22/2019		HUS		-		(29,449	)		(29,449	)
ARS	1,528,541	USD	1,319,000		11/7/2019		HUS		209,541		-			209,541
USD	3,342,767	ZAR	3,302,555		12/2/2019		HUS		40,212		-			40,212
USD	3,342,628	ZAR	3,302,555		12/2/2019		HUS		40,073		-			40,073
BRL	197,405	USD	200,000		1/3/2020		HUS		-		(2,595	)		(2,595	)

See accompanying notes

27

American Beacon GLG Total Return Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

Currency Purchased*		Currency Sold*		Settlement Date		Counterparty		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
BRL	987,844	USD	1,000,000		1/3/2020		HUS	$	-	$	(12,156	)	$	(12,156	)
BRL	1,005,075	USD	1,000,000		1/3/2020		HUS		5,075		-			5,075
BRL	1,515,774	USD	1,500,000		1/3/2020		HUS		15,774		-			15,774
BRL	1,716,053	USD	1,730,000		1/3/2020		HUS		-		(13,947	)		(13,947	)
BRL	1,774,622	USD	1,800,000		1/3/2020		HUS		-		(25,378	)		(25,378	)
BRL	5,502,908	USD	5,600,000		1/3/2020		HUS		-		(97,092	)		(97,092	)
BRL	6,145,962	USD	6,211,000		1/3/2020		HUS		-		(65,038	)		(65,038	)
BRL	12,885,947	USD	12,600,000		1/3/2020		HUS		285,947		-			285,947
USD	32,784,000	BRL	33,490,911		1/3/2020		HUS		-		(706,911	)		(706,911	)
USD	3,751,915	BRL	3,826,271		1/3/2020		HUS		-		(74,356	)		(74,356	)
USD	3,627,000	BRL	3,708,842		1/3/2020		HUS		-		(81,842	)		(81,842	)
USD	2,900,000	BRL	2,917,723		1/3/2020		HUS		-		(17,723	)		(17,723	)
								$	2,815,731	$	(2,479,253	)	$	336,478

* All Values denominated in USD

Glossary:
Counterparty Abbreviations:
BOA	Bank of America, N.A.
BRC	Barclays Bank PLC
CBK	Citibank, N.A.
DUB	Deutsche Bank AG
FBF	Credit Suisse Securities USA LLC
HUS	HSBC Bank (USA)
UAG	UBS AG
Currency Abbreviations:
ARS	Argentine Peso
BRL	Brazilian Real
COP	Colombian Peso
IDR	Indonesian Rupiah
USD	United States Dollar
ZAR	South African Rand
Exchange Abbreviations:
OTC	Over-the-Counter
Other Abbreviations:
CDI	Chess Depository Interest

See accompanying notes

28

American Beacon GLG Total Return Fund^SM

Schedule of Investments

July 31, 2019 (Unaudited)

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of July 31, 2019, the investments were classified as described below:

GLG Total Return Fund	Level 1		Level 2			Level 3		Total
Assets
Foreign Corporate Obligations
Mexico	$	-	$	5,932,366		$	-	$	5,932,366
Foreign Sovereign Obligations
South Africa		-		8,403,750			-		8,403,750
Short-Term Investments
Investment Companies		5,532,297		-			-		5,532,297
U.S. Treasury Obligations		-		191,104,475			-		191,104,475
Total Investments in Securities - Assets	$	5,532,297	$	205,440,591		$	-	$	210,972,888
Financial Derivative Instruments - Assets
Swap Contract Agreements	$	-	$	2,024,914		$	-	$	2,024,914
Forward Foreign Currency Contracts		-		2,815,731			-		2,815,731
Total Financial Derivative Instruments - Assets	$	-	$	4,840,645		$	-	$	4,840,645
Financial Derivative Instruments - Liabilities
Swap Contract Agreements	$	-	$	(8,865,655	)	$	-	$	(8,865,655	)
Forward Foreign Currency Contracts		-		(2,479,253	)		-		(2,479,253	)
Total Financial Derivative Instruments - Liabilities	$	-	$	(11,344,908	)	$	-	$	(11,344,908	)

U.S. GAAP requires transfers between all levels to/from level 3 be disclosed. During the period ended July 31, 2019, there were no transfers into or out of Level 3.

See accompanying notes

29

American Beacon Funds^SM

Statements of Assets and Liabilities

July 31, 2019 (Unaudited)

	Frontier Markets Income Fund			GLG Total Return Fund
Assets:
Investments in unaffiliated securities, at fair value†	$	372,594,711		$	205,440,591
Investments in affiliated securities, at fair value‡		44,006,783			5,532,297
Foreign currency, at fair value^		3,494,073			254
Cash		115,778			-
Swap premium paid		-			6,680,320
Cash with brokers		-			9,222,856
Cash collateral held at custodian for the benefit of the broker		-			1,090,000
Dividends and interest receivable		9,385,802			333,483
Receivable for investments sold		653,183			800,357,248
Receivable for fund shares sold		568,743			195,781
Receivable for tax reclaims		5,240			-
Receivable for expense reimbursement (Note 2)		-			39,080
Unrealized appreciation from forward foreign currency contracts		728,874			2,815,731
Unrealized appreciation from swap agreements		-			2,024,914
Prepaid expenses		77,003			90,248
Total assets		431,630,190			1,033,822,803
Liabilities:
Payable for investments purchased		3,418,227			801,177,577
Payable for fund shares redeemed		227,936			297,585
Payable for expense reimbursement (Note 2)		8,855			-
Cash collateral held at broker for the benefit of the custodian		-			882,828
Cash due to custodian		-			2,000,326
Swap premium received		-			963,536
Management and sub-advisory fees payable (Note 2)		314,287			209,973
Service fees payable (Note 2)		30,920			123
Transfer agent fees payable (Note 2)		20,600			60
Custody and fund accounting fees payable		78,820			38,512
Professional fees payable		74,562			42,041
Trustee fees payable (Note 2)		-			13,944
Unrealized depreciation from forward foreign currency contracts		58,451			2,479,253
Unrealized depreciation from swap agreements		-			8,865,655
Other liabilities		110			4,968
Total liabilities		4,232,768			816,976,381
Net assets	$	427,397,422		$	216,846,422
Analysis of net assets:
Paid-in-capital	$	456,657,831		$	245,697,619
Total distributable earnings (deficits)A		(29,260,409	)		(28,851,197	)
Net assets	$	427,397,422		$	216,846,422

See accompanying notes

30

American Beacon Funds^SM

Statements of Assets and Liabilities

July 31, 2019 (Unaudited)

	Frontier Markets Income Fund		GLG Total Return Fund
Shares outstanding at no par value (unlimited shares authorized):
Institutional Class		8,514,747		31,821
Y Class		30,784,625		70,453
Investor Class		7,209,615		13,930
A Class		384,196		10,605
C Class		1,333,612		10,550
Ultra Class		N/A		21,314,752
Net assets:
Institutional Class	$	75,461,187	$	321,692
Y Class	$	272,940,652	$	708,031
Investor Class	$	63,827,288	$	138,885
A Class	$	3,403,597	$	105,662
C Class	$	11,764,698	$	103,167
Ultra Class		N/A	$	215,468,985
Net asset value, offering and redemption price per share:
Institutional Class	$	8.86	$	10.11
Y Class	$	8.87	$	10.05
Investor Class	$	8.85	$	9.97
A Class	$	8.86	$	9.96
A Class (offering price)	$	9.30	$	10.46
C Class	$	8.82	$	9.78
Ultra Class		N/A	$	10.11
† Cost of investments in unaffiliated securities	$	382,120,288	$	205,470,725
‡ Cost of investments in affiliated securities	$	44,006,783	$	5,532,297
^ Cost of foreign currency	$	3,512,917	$	253
A The Fund’s investments in affiliated securities did not have unrealized appreciation (depreciation) at period end.

See accompanying notes

31

American Beacon Funds^SM

Statements of Operations

For the period ended July 31, 2019 (Unaudited)

	Frontier Markets Income Fund			GLG Total Return Fund
Investment income:
Dividend income from affiliated securities (Note 7)	$	385,061		$	126,874
Interest income (net of foreign taxes)†		17,387,349			4,675,238
Total investment income		17,772,410			4,802,112
Expenses:
Management and sub-advisory fees (Note 2)		1,445,016			1,814,477
Transfer agent fees:
Institutional Class (Note 2)		6,165			15
Y Class (Note 2)		90,890			380
Investor Class		1,039			470
A Class		236			6
C Class		113			5
Ultra Class		-			5,268
Custody and fund accounting fees		175,759			62,532
Professional fees		87,859			54,590
Registration fees and expenses		56,265			43,902
Service fees (Note 2):
Investor Class		114,987			147
A Class		1,784			-
C Class		4,030			-
Distribution fees (Note 2):
A Class		4,144			132
C Class		54,632			516
Prospectus and shareholder report expenses		10,364			22,589
Trustee fees (Note 2)		4,815			20,503
Dividends and interest on securities sold short		-			70,576
Other expenses		7,956			13,049
Total expenses		2,066,054			2,109,157
Net fees waived and expenses (reimbursed) / recouped (Note 2)		71,115			(221,146	)
Net expenses		2,137,169			1,888,011
Net investment income		15,635,241			2,914,101
Realized and unrealized gain (loss) from investments:
Net realized gain (loss) from:
Investments in unaffiliated securitiesA		(4,176,379	)		(148,356	)
Foreign currency transactions		(450,079	)		935,110
Forward foreign currency contracts		60,217			947,197
Swap agreements		-			(14,763,366	)
Change in net unrealized appreciation (depreciation) of:
Investments in unaffiliated securitiesB		10,677,720			(74,018	)
Foreign currency transactions		(16,942	)		(8	)
Forward foreign currency contracts		1,037,297			2,356,119
Swap agreements		-			7,033,511
Net gain (loss) from investments		7,131,834			(3,713,811	)
Net increase (decrease) in net assets resulting from operations	$	22,767,075		$	(799,710	)
† Foreign taxes	$	317,225		$	-
A The Fund did not recognize net realized gains (losses) from the sale of investments in affiliated securities.
B The Fund’s investments in affiliated securities did not have a change in unrealized appreciation (depreciation) at period end.

See accompanying notes

32

American Beacon Funds^SM

Statements of Changes in Net Assets

	Frontier Markets Income Fund						GLG Total Return Fund
	Six Months Ended July 31, 2019			Year Ended January 31, 2019			Six Months Ended July 31, 2019			Year Ended January 31, 2019
	(unaudited)						(unaudited)
Increase (decrease) in net assets:
Operations:
Net investment income	$	15,635,241		$	22,618,702		$	2,914,101		$	6,936,612
Net realized (loss) from investments in unaffiliated securities, foreign currency transactions, forward foreign currency contracts, and swap agreements		(4,566,241	)		(3,471,194	)		(13,029,415	)		(1,319,440	)
Change in net unrealized appreciation (depreciation) of investments in unaffiliated securities, foreign currency transactions, forward foreign currency contracts, and swap agreements		11,698,075			(23,891,914	)		9,315,604			2,075,945
Net increase (decrease) in net assets resulting from operations		22,767,075			(4,744,406	)		(799,710	)		7,693,117
Distributions to shareholders:
Total retained earnings:
Institutional Class		(2,968,749	)		(6,063,094	)		-			(51,527	)
Y Class		(8,201,766	)		(11,141,405	)		-			(21,812	)
Investor Class		(2,443,319	)		(3,746,033	)		-			(5,902	)
A Class		(136,735	)		(291,836	)		-			(3,999	)
C Class		(426,124	)		(743,483	)		-			(3,911	)
Ultra Class		-			-			-			(18,802,091	)
Net distributions to shareholders		(14,176,693	)		(21,985,851	)		-			(18,889,242	)
Capital share transactions (Note 10):
Proceeds from sales of shares		166,181,831			175,310,369			39,613,647			179,029,117
Reinvestment of dividends and distributions		12,824,062			18,991,501			-			18,844,081
Cost of shares redeemed		(36,439,991	)		(91,797,512	)		(291,422,256	)		(462,806,614	)
Redemption fees		30,049			88,999			-			-
Net increase (decrease) in net assets from capital share transactions		142,595,951			102,593,357			(251,808,609	)		(264,933,416	)
Net increase (decrease) in net assets		151,186,333			75,863,100			(252,608,319	)		(276,129,541	)
Net assets:
Beginning of period		276,211,089			200,347,989			469,454,741			745,584,282
End of period	$	427,397,422		$	276,211,089		$	216,846,422		$	469,454,741

See accompanying notes

33

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

1.  Organization and Significant Accounting Policies

American Beacon Funds (the “Trust”) is organized as a Massachusetts business trust. The Funds, each a series within the Trust, are registered under the Investment Company Act of 1940, as amended (the “Act”), as diversified, open-end management investment companies. As of July 31, 2019, the Trust consists of thirty-three active series, two of which are presented in this filing: American Beacon Frontier Markets Income Fund and American Beacon GLG Total Return Fund (collectively, the “Funds” and each individually a “Fund”). The remaining thirty-one active series are reported in separate filings. The American Beacon Frontier Markets Income Fund is registered as a diversified fund and American Beacon GLG Total Return Fund is registered as non-diversified.

American Beacon Advisors, Inc. (the “Manager”) is a Delaware corporation and a wholly-owned subsidiary of Resolute Investment Managers, Inc. (“RIM”) organized in 1986 to provide business management, advisory, administrative, and asset management consulting services to the Trust and other investors. The Manager is registered as an investment advisor under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). RIM is, in turn, a wholly-owned subsidiary of Resolute Acquisition, Inc., which is a wholly-owned subsidiary of Resolute Topco, Inc., a wholly-owned subsidiary of Resolute Investment Holdings, LLC (“RIH”). RIH is owned primarily by Kelso Investment Associates VIII, L.P., KEP VI, LLC and Estancia Capital Partners L.P., investment funds affiliated with Kelso & Company, L.P. (“Kelso”) or Estancia Capital Management, LLC (“Estancia”), which are private equity firms.

Recently Adopted Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-08, Premium Amortization of Purchased Callable Debt Securities. The amendments in the ASU shorten the premium amortization period on a purchased callable debt security from the security’s contractual life to the earliest call date. It is anticipated that this change will enhance disclosures by reducing losses recognized when a security is called on an earlier date. This ASU is effective for fiscal years beginning after December 15, 2018. The Manager continues to evaluate the impact this ASU will have on the financial statements and other disclosures.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (“Topic 820”). The amendments in the ASU impact disclosure requirements for fair value measurement. It is anticipated that this change will enhance the effectiveness of disclosures in the notes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted and can include the entire standard or certain provisions that exclude or amend disclosures. For the period ended July 31, 2019, the Funds have chosen to adopt the standard. The adoption of this ASU guidance did not have a material impact on the financial statements and other disclosures.

34

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Class Disclosure

Each Fund has multiple classes of shares designed to meet the needs of different groups of investors. The following table sets forth the differences amongst the classes:

Class	Eligible Investors	Minimum Initial Investments
Institutional	Large institutional investors - sold directly or through intermediary channels.	$	250,000
Y Class	Large institutional retirement plan investors - sold directly or through intermediary channels.	$	100,000
Investor	All investors using intermediary organizations such as broker-dealers or retirement plan sponsors - sold directly through intermediary channels.	$	2,500
A Class	All investors who invest through intermediary organizations, such as broker-dealers or third party administrator. Retail investors who invest directly through a financial intermediary such as a broker, bank, or registered investment advisor which may include a front-end sales charge and a contingent deferred sales charge (“CDSC”).	$	2,500
C Class	Retail investors who invest directly through a financial intermediary such as a broker or through employee directed benefit plans with applicable sales charges which may include CDSC.	$	1,000
Ultra	Large institutional investors - sold directly or through intermediary channels. The Manager may allow a reasonable period of time after opening an account for the Ultra Class for the investor to meet the initial investment requirement. In addition, for investors such as trust companies and financial advisors who make investments for a group of clients, the minimum initial investment can be met through aggregated purchase orders for more than one client.	$	500,000,000

Each class offered by the Trust has equal rights as to assets and voting privileges. Income and non-class specific expenses are allocated daily to each class based on the relative net assets. Realized and unrealized capital gains and losses of each class are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include service, distribution, transfer agent fees, and sub-transfer agent fees that vary amongst the classes as described more fully in Note 2.

Significant Accounting Policies

The following is a summary of significant accounting policies, consistently followed by the Funds in preparation of the financial statements. The Funds are considered investment companies and accordingly, follow the investment company accounting and reporting guidance of the FASB Accounting Standards Codification Topic 946, Financial Services – Investment Companies, a part of Generally Accepted Accounting Principles (“U.S. GAAP”).

Security Transactions and Investment Income

Security transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date.

Dividend income, net of foreign taxes, is recorded on the ex-dividend date, except certain dividends from foreign securities which are recorded as soon as the information is available to the Funds. Interest income, net of foreign taxes, is earned from settlement date, recorded on the accrual basis, and adjusted, if necessary, for accretion of discounts and amortization of premiums. Realized gains (losses) from securities sold are determined based on specific lot identification.

35

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Currency Translation

All assets and liabilities initially expressed in foreign currency values are converted into U.S. dollar values at the mean of the bid and ask prices of such currencies against U.S. dollars as last quoted by a recognized dealer. Income, expenses, and purchases and sales of investments are translated into U.S. dollars at the rate of the exchange prevailing on the respective dates of such transactions. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and is reported with all other foreign currency gains and losses on the Funds’ Statements of Operations.

Distributions to Shareholders

The Funds distributes most or all of the net earnings and realized gains, if any, each taxable year in the form of dividends from net investment income on a monthly basis and distributions of realized net capital gains and net gains from foreign currency transactions on an annual basis. The Funds do not have a fixed dividend rate and do not guarantee the payment any distributions in any particular period.

Dividends to shareholders are determined in accordance with federal income tax regulations, which may differ in amount and character from net investment income and realized gains recognized for purposes of U.S. GAAP. To the extent necessary to fully distribute capital gains, the Funds may designate earnings and profits distributed to shareholders on the redemption of shares.

Allocation of Income, Trust Expenses, Gains, and Losses

Investment income, realized and unrealized gains and losses from investments of the Funds are allocated daily to each class of shares based upon the relative proportion of net assets of each class to the total net assets of the Funds. Expenses directly charged or attributable to the Fund will be paid from the assets of the Fund. Generally, expenses of the Trust will be allocated among and charged to the assets of the Funds on a basis that the Trust’s Board of Trustees (the “Board”) deems fair and equitable, which may be based on the relative net assets of the Funds or nature of the services performed and relative applicability to the Funds.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimated.

Redemption Fees

All Classes of the Frontier Markets Fund impose a 2% redemption fee on shares held for less than 90 days. The fee is deducted from the redemption proceeds and is intended to offset the trading costs, market impact, and other costs associated with short-term trading activity in the Fund. The “first-in, first-out” method is used to determine the holding period. The fee is allocated to all classes of this Fund pro-rata based on the net assets.

Other

Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In the normal course of business, the Trust enters into contracts that provide indemnification to the other party or parties against potential costs or liabilities. The Trust’s maximum exposure under these arrangements is dependent on claims that may be made in the future and, therefore, cannot be estimated. The Trust has had no prior claims or losses pursuant to any such agreement.

36

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

2.  Transactions with Affiliates

Management and Investment Sub-Advisory Agreements

The Funds and the Manager are parties to a Management Agreement that obligates the Manager to provide the Funds with investment advisory and administrative services. As compensation for performing the duties under the Management Agreement, the Manager will receive an annualized management fee based on a percentage of the Funds’ average daily net assets that is calculated and accrued daily according to the following schedule:

First $5 billion	0.35	%
Next $5 billion	0.325	%
Next $10 billion	0.30	%
Over $20 billion	0.275	%

The Trust, on behalf of the Funds, and the Manager have entered into an Investment Advisory Agreements with Aberdeen Asset Managers Limited and Global Evolution USA, LLC for the Frontier Markets Fund and GLG LLC for the GLG Total Return Fund (the “Sub-Advisors”) pursuant to which each Fund has agreed to pay an annualized sub-advisory fee that is calculated and accrued daily based on the Funds’ average daily net assets according to the following schedules:

Aberdeen Asset Managers Limited

All Assets 0.50 % 

Global Evolution USA, LLC

All Assets 0.50 % 

GLG LLC

First $500 million	0.60	%
Next $500 million	0.55	%
Over $1 billion	0.50	%

The Management and Sub-Advisory Fees paid by the Funds for the period ended July 31, 2019 were as follows:

Frontier Markets Income Fund

	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.35	%	$	595,007
Sub-Advisor Fees		0.50	%		850,009
Total		0.85	%	$	1,445,016

GLG Total Return Fund

	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.35	%	$	668,491
Sub-Advisor Fees		0.60	%		1,145,986
Total		0.95	%	$	1,814,477

37

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Distribution Plans

The Funds, except for the A and C Classes of the Funds, have adopted a “defensive” Distribution Plan (the “Plan”) in accordance with Rule 12b-1 under the Act, pursuant to which no separate fees may be charged to the Funds for distribution purposes. However, the Plan authorizes the management fee received by the Manager and the investment advisors hired by the Manager to be used for distribution purposes. Under this Plan, the Funds do not intend to compensate the Manager or any other party, either directly or indirectly, for the distribution of Fund shares.

Separate Distribution Plans (the “Distribution Plans”) have been adopted pursuant to Rule 12b-1 under the Act for the A and C Classes of the Funds. Under the Distribution Plans, as compensation for distribution and shareholder servicing assistance, the Manager receives an annual fee of 0.25% of the average daily net assets of the A Class and 1.00% of the average daily net assets of the C Class. The fee will be payable without regard to whether the amount of the fee is more or less than the actual expenses incurred in a particular month by the Manager for distribution assistance.

Service Plans

The Manager and the Trust entered into Service Plans that obligate the Manager to oversee additional shareholder servicing of the Investor, A, and C Classes of the Funds. As compensation for performing the duties required under the Service Plans, the Manager receives an annualized fee up to 0.25% of the average daily net assets of the A and C Classes, and up to 0.375% of the average daily net assets of the Investor Class of the Funds.

Sub-Transfer Agent Fees

The Manager has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Institutional and Y Classes of the Funds and has agreed to compensate the intermediaries for providing these services. Intermediaries transact with the Funds primarily through the use of omnibus accounts on behalf of their customers who hold positions in the Funds. Certain services would have been provided by the Funds’ transfer agent and other service providers if the shareholders’ accounts were maintained directly by the Funds’ transfer agent. Accordingly, the Funds, pursuant to Board approval, have agreed to reimburse the Manager for certain non-distribution shareholder services provided by financial intermediaries for the Institutional and Y Classes. The reimbursement amounts (sub-transfer agent fees) paid to the Manager are subject to a fee limit of up to 0.10% of an intermediary’s average net assets in the Institutional and Y Classes on an annual basis. During the period ended July 31, 2019, the sub-transfer agent fees, as reflected in “Transfer agent fees” on the Statements of Operations, were as follows:

Fund	Sub-Transfer Agent Fees
Frontier Markets Income	$	92,812
GLG Total Return		371

As of July 31, 2019, the Funds owed the Manager the following reimbursement of sub-transfer agent fees, as reflected in “Transfer agent fees payable” on the Statements of Assets and Liabilities:

Fund	Reimbursement Sub-Transfer Agent Fees
Frontier Markets Income	$	20,600
GLG Total Return		60

38

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Investments in Affiliated Funds

The Funds may invest in the American Beacon U.S. Government Money Market Select Fund (the “USG Select Fund”). The Funds and the USG Select Fund have the same investment advisor and therefore, are considered to be affiliated. The Manager serves as investment advisor to the USG Select Fund and receives management fees and administrative fees totaling 0.10% of the average daily net assets of the USG Select Fund. During the period ended July 31, 2019, the Manager earned fees on the Funds’ direct investments in the USG Select Fund as shown below:

Fund	Direct Investments in USG Select Fund
Frontier Markets Income	$	16,570
GLG Total Return		5,447

Interfund Credit Facility

Pursuant to an exemptive order issued by the SEC, the Funds, along with other registered investment companies having management contracts with the Manager, may participate in a credit facility whereby each fund, under certain conditions, is permitted to lend money directly to and borrow directly from other participating funds for temporary purposes. The interfund credit facility is advantageous to the funds because it provides added liquidity and eliminates the need to maintain higher cash balances to meet redemptions. This situation could arise when shareholder redemptions exceed anticipated volumes and certain funds have insufficient cash on hand to satisfy such redemptions or when sales of securities do not settle as expected, resulting in a cash shortfall for a fund. When a fund liquidates portfolio securities to meet redemption requests, they often do not receive payment in settlement for up to two days (or longer for certain foreign transactions). Redemption requests normally are satisfied on the next business day. The credit facility provides a source of immediate, short-term liquidity pending settlement of the sale of portfolio securities. The credit facility is administered by a credit facility team consisting of professionals from the Manager’s asset management, compliance, and accounting areas who report the activities of the credit facility to the Board. During the period ended July 31, 2019, the Funds did not utilize the credit facility.

Expense Reimbursement Plan

The Manager contractually agreed to reduce fees and/or reimburse expenses for the classes of the Funds to the extent that total operating expenses exceed the Funds’ expense cap. During the period ended July 31, 2019, the Manager waived and/or reimbursed expenses as follows:

Fund	Class	Expense Cap				Reimbursed Expenses		Expenses Ineligible for Recoupment		(Recouped) Expenses			Expiration of Reimbursed Expenses
		2/1/2019 - 5/31/2019	6/1/2019 - 7/31/2019
Frontier Markets Income	Institutional	1.15%		1.15	%	$	-	$	-	$	(27,370	)		2021-2022
Frontier Markets Income	Y	1.25%		1.25	%		-		-		(46,670	)		2021-2022
Frontier Markets Income	Investor	-		-			-		-		-			2021-2022
Frontier Markets Income	A	-		-			-		-		(2,094	)		2021-2022
Frontier Markets Income	C	-		-			-		-		(305	)		2021-2022
GLG Total Return	Institutional	-		-			37		-		-			2021-2022
GLG Total Return	Y	1.15%		-			79		-		-			2021-2022
GLG Total Return	Investor	1.43%		1.43	%		364		-		-			2021-2022
GLG Total Return	A	-		-			-		-		(65	)		2021-2022
GLG Total Return	C	-		-			-		-		(65	)		2021-2022
GLG Total Return	Ultra	0.95%		0.95	%		220,796		-		-			2021-2022

Of these amounts, $8,855 was disclosed as a payable to the Manager on the Statements of Assets and Liabilities at July 31, 2019 for the Frontier Markets Income Fund and $39,080 was disclosed as a receivable from the Manager on the Statements of Assets and Liabilities at July 31, 2019 for the GLG Total Return Fund.

39

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

The Funds have adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of such fee reductions and expense reimbursements. Under the policy, the Manager can be reimbursed by the Funds for any contractual fee reductions 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 Funds’ annual operating expenses to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or time of recoupment. The reimbursed expenses listed above will expire in 2022. The carryover of excess expenses potentially reimbursable to the Manager are as follows:

Fund	Recouped Expenses		Excess Expense Carryover			Expired Expense Carryover		Expiration of Reimbursed Expenses
Frontier Markets Income	$	22,113	$	111	(1)	$	-		2019-2020
Frontier Markets Income		22,015		1,217			-		2020-2021
Frontier Markets Income		47,429		47,313			-		2021-2022
GLG Total Return		5,387		254,124			-		2019-2020
GLG Total Return		-		675,074			-		2020-2021
GLG Total Return		-		624,902			-		2021-2022

⁽¹⁾  Contractual expense caps were removed from the Institutional, Y, Investor, and A Classes on May 29, 2016. Voluntary expense caps were reinstated November 29, 2016 for the Institutional, Y, Investor, and A Classes.

Sales Commissions

The Funds’ Distributor, Resolute Investment Distributors, Inc. (“RID” or “Distributor”), may receive a portion of Class A sales charges from broker dealers and it may be used to offset distribution related expenses. During the period ended July 31, 2019, RID collected $2,695 from the sale of Class A Shares of the Frontier Markets Income Fund. RID did not collect any Class A sales charges for GLG Total Return Fund during the period ended July 31, 2019.

A CDSC of 0.50% will be deducted with respect to Class A Shares on certain purchases of $1,000,000 or more that are redeemed in whole or part within 18 months of purchase, unless waived as discussed in the Funds’ Prospectus. Any applicable CDSC will be 0.50% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended July 31, 2019, there were no CDSC fees collected for Class A Shares of the Funds.

A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived as discussed in the Funds’ Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended July 31, 2019, CDSC fees of $1,528 were collected for Class C Shares of the Frontier Markets Income Fund. RID did not collect any CDSC fees for Class C Shares for GLG Total Return Fund during the period ended July 31, 2019.

Trustee Fees and Expenses

As compensation for their service to the Trusts, each Trustee receives an annual retainer of $120,000, plus $10,000 for each Board meeting attended in person or via teleconference, $2,500 for attendance by Committee members at meetings of the Audit Committee and the Investment Committee, and $1,500 for attendance by Committee members at meetings of the Nominating and Governance Committee, plus reimbursement of reasonable expenses incurred in attending Board meetings, Committee meetings, and relevant educational seminars. The Trustees also may be compensated for attendance at special Board and/or Committee meetings from time to time. The Board Chair receives an additional annual retainer of $50,000 as well as a $2,500 fee each quarter for attendance at the committee meetings. The Chairpersons of the Audit Committee and the Investment Committee each receive an additional annual retainer of $25,000 and the Chairman of the Nominating and Governance Committee receives an additional annual retainer of $10,000. These expenses are allocated on a prorated basis to each fund of the Trusts according to its respective net assets.

40

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

3.  Security Valuation and Fair Value Measurements

The price of the Fund’s shares is based on its net asset value (“NAV”) per share. The Fund’s NAV is computed by adding total assets, subtracting all the Fund’s liabilities, and dividing the result by the total number of shares outstanding.

The NAV of each class of the Fund’s shares is determined based on a pro rata allocation of the Fund’s investment income, expenses and total capital gains and losses. The Fund’s NAV per share is determined each business day as of the regular close of trading on the New York Stock Exchange (“NYSE” or “Exchange”), which is typically 4:00 p.m. Eastern Time (“ET”). However, if trading on the NYSE closes at a time other than 4:00 p.m. ET, the Fund’s NAV per share typically would still be determined as of the regular close of trading on the NYSE. The Fund does not price its shares on days that the NYSE is closed. Foreign exchanges may permit trading in foreign securities on days when the Fund is not open for business, which may result in the value of the Fund’s portfolio investments being affected at a time when you are unable to buy or sell shares.

Equity securities, including shares of closed-end funds and exchange-traded funds (“ETFs”), are valued at the last sale price or official closing price taken from the primary exchange in which each security trades. Investments in other mutual funds are valued at the closing NAV per share on the day of valuation. Debt securities are valued at bid quotes from broker/dealers or evaluated bid prices from pricing services, who may consider a number of inputs and factors, such as prices of comparable securities, yield curves, spreads, credit ratings, coupon rates, maturity, default rates, and underlying collateral. Futures are valued based on their daily settlement prices. Exchange-traded and over-the-counter (“OTC”) options are valued at the last sale price. Options with no last sale for the day are priced at mid quote. Swaps are valued at evaluated mid prices from pricing services.

The valuation of securities traded on foreign markets and certain fixed income securities will generally be based on prices determined as of the earlier closing time of the markets on which they primarily trade unless a significant event has occurred. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. ET.

Securities may be valued at fair value, as determined in good faith and pursuant to procedures approved by the Board, under certain limited circumstances. For example, fair value pricing will be used when market quotations are not readily available or reliable, as determined by the Manager, such as when (i) trading for a security is restricted or stopped; (ii) a security’s trading market is closed (other than customary closings); or (iii) a security has been de-listed from a national exchange. A security with limited market liquidity may require fair value pricing if the Manager determines that the available price does not reflect the security’s true market value. In addition, if a significant event that the Manager determines to affect the value of one or more securities held by the Fund occurs after the close of a related exchange but before the determination of the Fund’s NAV, fair value pricing may be used on the affected security or securities. Securities of small-capitalization companies are also more likely to require a fair value determination using these procedures because they are more thinly traded and less liquid than the securities of larger-capitalization companies. The Fund may fair value securities as a result of significant events occurring after the close of the foreign markets in which the Fund invests as described below. In addition, the Fund may invest in illiquid securities requiring these procedures.

The Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund’s pricing time of 4:00 p.m. ET. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. If the Manager determines that the last quoted prices of non-U.S. securities will, in its judgment, materially affect the value of some or all its portfolio securities, the Manager can adjust the previous closing prices to reflect what it believes to be the fair value of the securities as of the close of the Exchange. In deciding whether it is necessary to adjust closing prices to reflect fair value, the Manager reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities

41

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

and baskets of foreign securities. These securities are fair valued using a pricing service, using methods approved by the Board, that considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant American Depositary Receipts (“ADRs”) and futures contracts. The Valuation Committee, established by the Board, may also fair value securities in other situations, such as when a particular foreign market is closed but the Fund is open. The Fund uses outside pricing services to provide closing prices and information to evaluate and/or adjust those prices. As a means of evaluating its security valuation process, the Valuation Committee routinely compares closing prices, the next day’s opening prices in the same markets and adjusted prices.

Attempts to determine the fair value of securities introduce an element of subjectivity to the pricing of securities. As a result, the price of a security determined through fair valuation techniques may differ from the price quoted or published by other sources and may not accurately reflect the market value of the security when trading resumes. If a reliable market quotation becomes available for a security formerly valued through fair valuation techniques, the Manager compares the new market quotation to the fair value price to evaluate the effectiveness of the Fund’s fair valuation procedures. If any significant discrepancies are found, the Manager may adjust the Fund’s fair valuation procedures.

Valuation Inputs

Various inputs may be used to determine the fair value of the Funds’ investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

Level 1	-	Quoted prices in active markets for identical securities.
Level 2	-	Prices determined using other significant observable inputs. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Level 3	-	Prices determined using other significant unobservable inputs. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in pricing an investment.

Level 1 and Level 2 trading assets and trading liabilities, at fair value

Fixed-income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. Treasury obligations, sovereign issues, bank loans, convertible preferred securities, and non-U.S. bonds are normally valued by pricing service providers that use broker dealer quotations, reported trades or valuation estimates from their internal pricing models. The service providers’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates, and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy. Fixed-income securities purchased on a delayed-delivery basis are marked-to-market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs and financial derivative instruments, such as futures contracts or options that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are generally categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment management companies will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy.

42

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

OTC financial derivative instruments, such as forward foreign currency contracts and structured notes, derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of broker dealer quotations or pricing service providers. Depending on the product and the terms of the transaction, the fair value of the financial derivative contracts can be estimated by a pricing service provider using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves, dividends, and exchange rates. Financial derivatives that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value

The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of the fair value hierarchy are as follows.

Securities and other assets for which market quotes are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction and may be categorized as Level 3 of the fair value hierarchy.

Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the Exchange close, that materially affect the values of the Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade, do not open for trading for the entire day and no other market prices are available. The Board has delegated to the Manager the responsibility for monitoring significant events that may materially affect the fair values of a Fund’s securities or assets and for determining whether the value of the applicable securities or assets should be re-evaluated in light of such significant events.

The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation methods to the Manager. For instances in which daily market quotes are not readily available, investments may be valued pursuant to guidelines established by the Board. In the event that the security or asset cannot be valued, pursuant to one of the valuation methods established by the Board, the fair value of the security or asset will be determined in good faith by the Valuation Committee, generally based upon recommendations provided by the Manager.

When a Fund uses fair valuation methods applied by the Manager that use significant unobservable inputs to determine its NAV, the securities priced using this methodology are categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Fund’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that a Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ from the value that would be realized if the securities were sold.

4.  Securities and Other Investments

Credit-Linked Notes

The Frontier Markets Income Fund may invest in credit-linked notes (“CLNs”). CLNs are derivative debt obligations that are issued by limited purpose entities, such as Special Purpose Vehicles (“SPVs”), or by financial firms, such as banks, securities firms or their affiliates. They are structured so that their performance is linked to that of an underlying bond or other debt obligation (a “reference asset”), normally by means of an embedded or underlying credit default swap. The reference assets for the CLNs in which the Fund may invest will be limited to

43

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

sovereign or quasi-sovereign debt instruments or other investments in which the Fund’s investment policies permit it to invest directly. The Fund may invest in CLNs when the Fund’s Sub-Advisor believes that doing so is more efficient than investing in the reference assets directly or when such direct investment by the Fund is not feasible due to legal or other restrictions.

The issuer or one of the affiliates of the issuer of the CLNs in which the Fund will invest, normally will purchase the reference asset underlying the CLN directly, but in some cases it may gain exposure to the reference asset through a credit default swap or other derivative. Under the terms of a CLN, the Fund will receive a fixed or variable rate of interest on the outstanding principal amount of the CLN, which in turn will be subject to reduction (potentially down to zero) if a “credit event” occurs with respect to the underlying reference asset or its issuer. Such credit events will include payment defaults on the reference asset, and normally will also include events that do not involve an actual default, such as actual or potential insolvencies, repudiations of indebtedness, moratoria on payments, reference asset restructurings, limits on the convertibility or repatriation of currencies, and the imposition of ownership restrictions. If a credit event occurs, payments on the CLN would terminate, and the Fund normally would receive delivery of the underlying reference asset (or, in some cases, a comparable “deliverable” asset) in lieu of the repayment of principal. In some cases, however, including but not limited to instances where there has been a market disruption or in which it is or has become illegal, impossible or impracticable for the Fund to purchase, hold or receive the reference assets, the Fund may receive a cash settlement based on the value of the reference asset or a comparable instrument, less fees charged and certain expenses incurred by the CLN issuer.

CLNs are debt obligations of the CLN issuers, and the Fund would have no ownership or other property interest in the reference assets (other than following a credit event that results in the reference assets being delivered to the Fund) or any direct recourse to the issuers of those reference assets. Thus, the Fund will be exposed to the credit risk of the issuers of the reference assets that underlie its CLNs, as well as to the credit risk of the issuers of the CLNs themselves. CLNs will also be subject to currency risk, liquidity risk, valuation risks, and the other risks of a credit default swap. Various determinations that may need to be made with respect to the CLNs, including the occurrence of a credit event, the selection of deliverable assets (where applicable) and the valuation of the reference asset for purposes of determining any cash settlement amount, normally will be made by the issuer or sponsor of the CLN. The interests of such issuer or sponsor may not be aligned with those of the Fund or other investors in the CLN. Accordingly, CLNs may also be subject to potential conflicts of interest. There may be no established trading market for the Fund’s CLNs, in which event they may constitute illiquid investments.

Fixed-Income Investments

The Funds may hold debt, including government and corporate debt, and other fixed-income securities. Typically, the values of fixed-income securities change inversely with prevailing interest rates. Therefore, a fundamental risk of fixed-income securities is interest rate risk, which is the risk that their value will generally decline as prevailing interest rates rise, which may cause the Funds’ NAV to likewise decrease, and vice versa. How specific fixed-income securities may react to changes in interest rates will depend on the specific characteristics of each security. For example, while securities with longer maturities tend to produce higher yields, they also tend to be more sensitive to changes in prevailing interest rates and are, therefore, more volatile than shorter-term securities and are subject to greater market fluctuations as a result of changes in interest rates. Fixed-income securities are also subject to credit risk, which is the risk that the credit strength of an issuer of a fixed-income security will weaken and/or that the issuer will be unable to make timely principal and interest payments and that the security may go into default. In addition, there is prepayment risk, which is the risk that during periods of falling interest rates, certain fixed-income securities with higher interest rates, such as mortgage-backed securities (“MBS”) and ABS, may be prepaid by their issuers thereby reducing the amount of interest payments. This may result in a Fund having to reinvest its proceeds in lower yielding securities. Securities underlying MBS and ABS, which may include subprime mortgages, also may be subject to a higher degree of credit risk, valuation risk, and liquidity risk.

44

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Foreign Debt Securities

The Funds may invest in foreign fixed and floating rate income securities (including emerging market securities) all or a portion of which may be non-U.S. dollar denominated and which include: (a) debt obligations issued or guaranteed by foreign national, provincial, state, municipal or other governments with taxing authority or by their agencies or instrumentalities, including Brady Bonds; (b) debt obligations of supranational entities; (c) debt obligations of the U.S. Government issued in non-dollar securities; (d) debt obligations and other fixed income securities of foreign corporate issuers (both dollar and non-dollar denominated); and (e) U.S. corporate issuers (both Eurodollar and non-dollar denominated). There is no minimum rating criteria for the Funds’ investments in such securities. Investing in the securities of foreign issuers involves special considerations that are not typically associated with investing in the securities of U.S. issuers. In addition, emerging markets are markets that have risks that are different and higher than those in more developed markets.

Foreign Securities

The Funds may invest in U.S. dollar-denominated and non-U.S. dollar denominated equity and debt securities of foreign issuers and foreign branches of U.S. banks, including negotiable certificates of deposit (“CDs”), bankers’ acceptances, and commercial paper. Foreign issuers are issuers organized and doing business principally outside the United States and include corporations, banks, non-U.S. governments, and quasi-governmental organizations. While investments in foreign securities may be intended to reduce risk by providing further diversification, such investments involve sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political or social instability, nationalization, expropriation, or confiscatory taxation); the potentially adverse effects of unavailability of public information regarding issuers, different governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States; different laws and customs governing securities tracking; and possibly limited access to the courts to enforce the Funds’ rights as an investor.

Frontier and Emerging Market Investments

The Funds may invest in the securities and derivatives with exposure to various countries with emerging capital markets. Investments in the securities and derivatives with exposure to countries with emerging capital markets involve significantly higher risks not involved in investments in securities in more developed capital markets, such as (i) low or non-existent trading volume, resulting in a lack of liquidity and increased volatility in prices for such securities, as compared to securities from more developed capital markets, (ii) uncertain national policies and social, political and economic instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of inflation or unfavorable diplomatic developments, (iii) possible fluctuations in exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other non-U.S. or U.S. governmental laws or restrictions applicable to such investments, (iv) national policies that may limit the Fund’s investment opportunities such as restrictions on investment in issuers or industries deemed sensitive to national interests, (v) the lack or relatively early development of legal structures governing private and foreign investments and private property, and (vi) less diverse or immature economic structures. In addition to withholding taxes on investment income, some countries with emerging capital markets may impose differential capital gain taxes on foreign investors.

Illiquid and Restricted Securities

Generally, an illiquid asset is an asset that the Funds reasonably expect cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, as determined pursuant to Rule 22e-4 under the Investment Company Act or as otherwise permitted or required by SEC rules and interpretations. Historically, illiquid securities have included securities that have not been registered under the Securities Act, securities that are otherwise not readily

45

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

marketable, and repurchase agreements having a remaining maturity of longer than seven calendar days. Securities that have not been registered under the Securities Act are referred to as private placements or restricted securities and are purchased directly from the issuer or in the secondary market. These securities may be sold only in a privately negotiated transaction or pursuant to an exemption from registration. A large institutional market exists for certain securities that are not registered under the Securities Act, including repurchase agreements, commercial paper, foreign securities, municipal securities and corporate bonds and notes. Institutional investors depend on an efficient institutional market in which the unregistered security can be readily resold or on an issuer’s ability to honor a demand for repayment. However, the fact that there are contractual or legal restrictions on resale of such investments to the general public or to certain institutions may not be indicative of their liquidity.

Limitations on resale may have an adverse effect on the marketability of portfolio securities, and the Fund might be unable to dispose of restricted or other illiquid securities promptly or at reasonable prices and might thereby experience difficulty satisfying redemptions within seven calendar days. In addition, the Fund may get only limited information about an issuer, so it may be less able to predict a loss. The Fund also might have to register such restricted securities in order to dispose of them resulting in additional expense and delay. Adverse market conditions could impede such a public offering of securities. In recognition of the increased size and liquidity of the institutional market for unregistered securities and the importance of institutional investors in the formation of capital, the SEC adopted Rule 144A under the Securities Act. Rule 144A is designed to facilitate efficient trading among institutional investors by permitting the sale of certain unregistered securities to qualified institutional buyers. To the extent privately placed securities held by the Fund qualify under Rule 144A and an institutional market develops for those securities, the Fund likely will be able to dispose of the securities without registering them under the Securities Act. To the extent that institutional buyers become, for a time, uninterested in purchasing these securities, investing in Rule 144A securities could increase the level of the Fund’s illiquidity. The Manager or the sub-advisor, as applicable, may determine that certain securities qualified for trading under Rule 144A are liquid. Regulation S under the Securities Act permits the sale abroad of securities that are not registered for sale in the United States and includes a provision for U.S. investors, such as the Fund, to purchase such unregistered securities if certain conditions are met.

Securities sold in private placement offerings made in reliance on the “private placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act and resold to qualified institutional buyers under Rule 144A under the Securities Act (“Section 4(a)(2) securities”) are restricted as to disposition under the federal securities laws, and generally are sold to institutional investors, such as the Fund, that agree they are purchasing the securities for investment and not with an intention to distribute to the public. Any resale by the purchaser must be pursuant to an exempt transaction and may be accomplished in accordance with Rule 144A. Section 4(a)(2) securities normally are resold to other institutional investors through or with the assistance of the issuer or dealers that make a market in the Section 4(a)(2) securities, thus providing liquidity.

Inflation-Indexed Bonds

The Funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted based on the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statements of Operations, even though investors do not receive their principal until maturity.

Other Investment Company Securities and Other Exchange-Traded Products

The Funds may invest in shares of other investment companies, including open-end funds, closed-end funds, business development companies, ETFs, unit investment trusts, and other investment companies of the Trust. The Funds may invest in investment company securities advised by the Manager or a sub-advisor. Investments in the

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securities of other investment companies may involve duplication of advisory fees and certain other expenses. By investing in another investment company, the Funds become a shareholder of that investment company. As a result, the Funds’ shareholders indirectly will bear the Funds’ proportionate share of the fees and expenses paid by shareholders of the other investment company, in addition to the fees and expenses the Funds’ shareholders directly bear in connection with the Funds’ own operations. These other fees and expenses are reflected as Acquired Fund Fees and Expenses and are included in the Fees and Expenses Table for the Funds in their Prospectus, if applicable. Investments in other investment companies may involve the payment of substantial premiums above the value of such issuer’s portfolio securities.

The Funds can invest free cash balances in registered open-end investment companies regulated as money market funds under the Investment Company Act, to provide liquidity or for defensive purposes. The Funds could invest in money market funds rather than purchasing individual short-term investments. If the Funds invests in money market funds, shareholders will bear their proportionate share of the expenses, including for example, advisory and administrative fees, of the money market funds in which the Funds invest, including advisory fees charged by the Manager to any applicable money market funds advised by the Manager.

Sovereign and Quasi-Sovereign Government and Supranational Debt

The Funds can invest in debt securities issued or guaranteed by foreign governments and their political subdivisions or agencies which involve special risks. Sovereign debt differs from debt obligations issued by private entities in that, generally, remedies for defaults must be pursued in the courts of the defaulting party. Sovereign debt securities may include: debt securities issued or guaranteed by governments, governmental agencies or instrumentalities and political subdivisions located in emerging market countries; debt securities issued by government owned, controlled or sponsored entities located in emerging market countries; interests in entities organized and operated for the purpose of restructuring the investment characteristics of instruments issued by government owned, controlled or sponsored entities located in emerging market countries; interests in entities organized and operated for the purpose of restructuring the investment characteristics of instruments issued by any of the above issuers; participations in loans between emerging market governments and financial institutions; and Brady Bonds, which are debt securities issued under the framework of the Brady Plan as a means for debtor nations to restructure their outstanding external indebtedness.

Supranational entities may also issue debt securities. Supranational organizations are entities designated or supported by a government or governmental group to promote economic development. Included among these organizations are the Asian Development Bank, the European Investment Bank, the Inter-American Development Bank, the International Monetary Fund, the United Nations, the World Bank and the European Bank for Reconstruction and Development. Supranational organizations have no taxing authority and are dependent on their members for payments of interest and principal to the extent their assets are insufficient. Further, the lending activities of such entities are limited to a percentage of their total capital, reserves and net income.

Variable or Floating Rate Obligations

The coupon on certain fixed-income securities in which the Fund may invest is not fixed and may fluctuate based upon changes in market rates. The coupon on a floating rate security is generally based on an interest rate such as a money market index, LIBOR or a Treasury bill rate. A variable rate obligation has an interest rate which is adjusted at predesignated periods in response to changes in the market rate of interest on which the interest rate is based. Variable and floating rate obligations are less effective than fixed rate obligations at locking in a particular yield. Nevertheless, such obligations may fluctuate in value in response to interest rate changes if there is a delay between changes in market interest rates and the interest reset date for the obligation, or for other reasons.

As short-term interest rates decline, the coupons on floating rate securities typically decrease. Alternatively, during periods of increasing interest rates, changes in the coupons of floating rate securities may lag

47

American Beacon Funds^SM

Notes to Financial Statements

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behind changes in market rates or may have limits on the maximum increases in the coupon rates. The value of floating rate securities may decline if their coupons do not rise as much, or as quickly, as interest rates in general. Floating rate securities will not generally increase in value if interest rates decline.

5.  Financial Derivative Instruments

The Funds may utilize derivative instruments to enhance return, hedge risk, gain efficient exposure to an asset class or to manage liquidity. When considering the Funds’ use of derivatives, it is important to note that the Funds do not use derivatives for the purpose of creating financial leverage.

Forward Foreign Currency Contracts

The Funds may enter into forward foreign currency contracts to hedge the exchange rate risk on investment transactions or to hedge the value of the Funds’ securities denominated in foreign currencies. Forward foreign currency contracts are valued at the forward exchange rate prevailing on the day of valuation. The Funds may also use currency contracts to increase exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one country to another. The Funds bear the market risk that arises from changes in foreign exchange rates, and accordingly, the unrealized gain (loss) on these contracts is reflected in the accompanying financial statements. The Funds also bear the credit risk if the counterparty fails to perform under the contract.

During the period ended July 31, 2019, the Funds entered into forward foreign currency contracts primarily for hedging foreign currency fluctuations.

The Funds’ forward foreign currency contract notional dollar values outstanding fluctuate throughout the operating year as required to meet strategic requirements. The following table illustrates the average quarterly volume of forward foreign currency contracts. For the purpose of this disclosure, volume is measured by the amounts bought and sold in USD at each quarter end.

Average Forward Foreign Currency Notional Amounts Outstanding Period Ended July 31, 2019
Fund	Purchased Contracts		Sold Contracts
Frontier Markets Income	$	10,375,699	$	10,044,069
GLG Total Return		155,497,848		204,762,978

Futures Contracts

Futures contracts are contracts to buy or sell a standard quantity of securities at a specified price on a future date. The Funds may enter into financial futures contracts as a method for keeping assets readily convertible to cash if needed to meet shareholder redemptions or for other needs while maintaining exposure to the stock or bond market, as applicable. The primary risks associated with the use of futures contracts are the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities or that the counterparty will fail to perform its obligations.

Upon entering into a futures contract, the Funds are required to set aside or deposit with a broker an amount, termed the initial margin, which typically represents a portion of the face value of the futures contract. The Funds usually reflects this amount on the Schedules of Investments as a U.S. Treasury Bill held as collateral for futures contracts or as cash deposited with broker on the Statements of Assets and Liabilities. Payments to and from the broker, known as variation margin, are required to be made on a daily basis as the price of the futures contract fluctuates. Changes in initial settlement values are accounted for as unrealized appreciation (depreciation) until the contracts are terminated, at which time realized gains and losses are recognized. Futures contracts are valued at the most recent settlement price established each day by the exchange on which they are traded.

The Funds did not hold any futures as of July 31, 2019.

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American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

Swap Agreements

The Funds may invest in swap agreements. Swap agreements are negotiated between the Fund and a counterparty to exchange or swap investment cash flows, assets, foreign currencies, or market-linked returns at specified, future intervals. Swap agreements are either privately negotiated in the OTC market (“OTC Swaps”) or cleared in a central clearing house (“Centrally Cleared Swaps”). The Fund may enter into credit default, cross-currency, interest rate and other forms of swap agreements to manage its exposure to credit, currency, interest rate, and inflation risk. In connection with these agreements, securities or cash may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Swaps are marked to market daily based upon values from third party vendors or quotations from market makers to the extent available and the change in value, if any, is recorded as an unrealized gain or loss on the Statement of Assets and Liabilities. Daily fluctuations in the value of centrally cleared swaps are recorded in variation margin on the Statement of Assets and Liabilities and recorded as unrealized gain or loss. In the event that market quotes are not readily available and the swap cannot be valued pursuant to one of the valuation methods, the value of the swap will be determined in good faith by the Valuation Committee pursuant to procedures approved by the Board.

For OTC payments received or made at the beginning of the measurement period are reflected as such on the Statement of Assets and Liabilities and represent payments made or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Centrally cleared swaps provide the same rights to the protection buyer and seller except the payments between parties, including upfront premiums, are settled through a central clearing agent through variation margin payments. Upfront and periodic payments for OTC and centrally cleared swaps are recorded as realized gains or losses on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statement of Operations. Net periodic payments received or paid by the Fund are included as part of realized gains or losses on the Statement of Operations.

Entering into these agreements involves, to varying degrees, elements of credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates.

The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by the posting of collateral to the Fund to cover the Fund’s exposure to the counterparty.

Credit Default Swap Agreements

Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event of a default or other credit event for the referenced entity, obligation or index. As a seller of protection on credit default swap agreements, the Fund will generally receive from the buyer of protection a fixed rate of periodic premiums throughout the term of the swap provided that there is no credit event. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure up to the notional amount of the swap.

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American Beacon Funds^SM

Notes to Financial Statements

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If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.

Credit default swap agreements on corporate issues, sovereign issues of an emerging country or U.S. municipal issues involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event). The Fund may use credit default swaps on corporate issues, sovereign issues of an emerging country or U.S. municipal issues to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Fund owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default.

Credit default swap agreements on asset-backed securities involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. Unlike credit default swaps on corporate issues, sovereign issues of an emerging country or U.S. municipal issues, deliverable obligations in most instances would be limited to the specific referenced obligation as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other writedown or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap agreement will be adjusted by corresponding amounts. The Fund may use credit default swaps on asset-backed securities to provide a measure of protection against defaults of the referenced obligation that the Fund owns or to take an active long or short position with respect to the likelihood of a particular referenced obligation’s default that the Fund does not own.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Fund may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit

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American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

default swaps to achieve a similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, sovereign issues of an emerging country or U.S. municipal issues as of period end are disclosed in the Notes to the Schedules of Investments and serve as an indicator of the current status of the payment/performance risk and represent a market participant view of the likelihood or risk of default for the underlying referenced security to credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of July 31, 2019, for which the Fund is the seller of protection is disclosed in the Notes to the Schedules of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.

During the period ended July 31, 2019, the GLG Total Return Fund entered into credit default swaps primarily for return enhancement, hedging, and exposing cash to markets.

The Fund’s credit default swap contract notional amounts outstanding fluctuate throughout the operating year as required to meet the strategic requirements. The following table illustrates the average quarterly volume of credit default swap contracts. For the purpose of this disclosure, the volume is measure by the notional amounts outstanding at each quarter end.

Average Credit Default Swap Notional Amounts Outstanding
Fund	Period Ended July 31, 2019
GLG Total Return	$	335,839,020

Interest Rate Swap Agreements

The GLG Total Return Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Fund with another party of their respective commitments to pay or receive interest with respect to the notional amount of principal.

During the period ended July 31, 2019, the GLG Total Return Fund entered into interest rate swaps primarily for return enhancement, hedging and exposing cash to markets.

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American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

The Fund’s interest rate swap contract notional amounts outstanding fluctuate throughout the operating year as required to meet the strategic requirements. The following table illustrates the average quarterly volume of interest rate swap contracts. For the purpose of this disclosure, the volume is measured by the notional amounts outstanding at each quarter end.

Average Interest Rate Swaps Notional Amounts Outstanding
Fund	Period Ended July 31, 2019
GLG Total Return	$	753,575,000

The following is a summary of the fair valuations of the Funds’ derivative instruments categorized by risk
exposure⁽¹⁾:

Frontier Markets Income Fund

Fair values of financial instruments on the Statements of Assets and Liabilities as of July 31, 2019:
	Derivatives not accounted for as hedging instruments
Assets:	Credit contracts			Foreign exchange contracts				Commodity contracts			Interest rate contracts			Equity contracts			Total
Unrealized appreciation of forward foreign currency contracts		$	-		$	728,874			$	-		$	-		$	-		$	728,874
Liabilities:	Credit contracts			Foreign exchange contracts				Commodity contracts			Interest rate contracts			Equity contracts			Total
Unrealized depreciation of forward foreign currency contracts		$	-		$	(58,451	)		$	-		$	-		$	-		$	(58,451	)
The effect of financial derivative instruments on the Statements of Operations as of July 31, 2019:
	Derivatives not accounted for as hedging instruments
Realized gain (loss) from derivatives recognized as a result of operations	Credit contracts			Foreign exchange contracts				Commodity contracts			Interest rate contracts			Equity contracts			Total
Forward foreign currency contracts		$	-		$	60,217			$	-		$	-		$	-		$	60,217
Net change in unrealized appreciation (depreciation) of derivatives recognized as a result from operations:	Credit contracts			Foreign exchange contracts				Commodity contracts			Interest rate contracts			Equity contracts			Total
Forward foreign currency contracts		$	-		$	1,037,297			$	-		$	-		$	-		$	1,037,297

GLG Total Return Fund

Fair values of financial instruments on the Statements of Assets and Liabilities as of July 31, 2019:
	Derivatives not accounted for as hedging instruments
Assets:	Credit contracts				Foreign exchange contracts				Commodity contracts			Interest rate contracts				Equity contracts			Total
Unrealized appreciation of forward foreign currency contracts		$	-			$	2,815,731			$	-		$	-			$	-		$	2,815,731
Unrealized appreciation from swap agreements			2,020,950				-				-			3,964				-			2,024,914
Liabilities:	Credit contracts				Foreign exchange contracts				Commodity contracts			Interest rate contracts				Equity contracts			Total
Unrealized depreciation of forward foreign currency contracts		$	-			$	(2,479,253	)		$	-		$	-			$	-		$	(2,479,253	)
Unrealized depreciation from swap agreements			(221,898	)			-				-			(8,643,757	)			-			(8,865,655	)

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American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

The effect of financial derivative instruments on the Statements of Operations as of July 31, 2019:
	Derivatives not accounted for as hedging instruments
Realized gain (loss) from derivatives recognized as a result of operations	Credit contracts				Foreign exchange contracts			Commodity contracts			Interest rate contracts				Equity contracts			Total
Forward foreign currency contracts		$	-			$	947,197		$	-		$	-			$	-		$	947,197
Swap agreements			(7,797,049	)			-			-			(6,966,317	)			-			(14,763,366	)
Net change in unrealized appreciation (depreciation) of derivatives recognized as a result from operations:	Credit contracts				Foreign exchange contracts			Commodity contracts			Interest rate contracts				Equity contracts			Total
Forward foreign currency contracts		$	-			$	2,356,119		$	-		$	-			$	-		$	2,356,119
Swap agreements			2,315,872				-			-			4,717,639				-			7,033,511

Master Agreements

International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”) with counterparties govern transactions in over-the-counter (“OTC”) derivative and foreign exchange contracts entered into by the Fund and those counterparties. The ISDA Master Agreements contain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. Since different types of forward and OTC financial derivative transactions have different mechanics and are sometimes traded out of different legal entities of a particular counterparty organization, each type of transaction may be covered by a different Master Agreement, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow a Fund to net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single agreement with a counterparty.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as delayed delivery or sale-buyback financing transactions by and between a Fund and select counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

Offsetting Assets and Liabilities

The Funds are parties to enforceable master netting agreements between brokers and counterparties which provide for the right to offset under certain circumstances. The Funds employ multiple money managers and counterparties and have elected not to offset qualifying financial and derivative instruments on the Statements of Assets and Liabilities, as such all financial and derivative instruments are presented on a gross basis. The impacts of netting arrangements that provide the right to offset are detailed below. The net amount represents the net receivable or payable that would be due from or to the counterparty in the event of default. Exposure from borrowings and other financing agreements such as repurchase agreements can only be netted across transactions governed by the same Master Agreement with the same legal entity. All amounts reported below represent the balance as of the report date, July 31, 2019.

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Notes to Financial Statements

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Frontier Markets Income Fund

Offsetting of Financial and Derivative Assets as of July 31, 2019:
	Assets		Liabilities
Forward Foreign Currency Contracts	$	728,874	$	58,451
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	728,874	$	58,451
Total derivative assets and liabilities subject to an MNA	$	728,874	$	58,451

Financial Assets, Derivatives, and Collateral Received/(Pledged) by Counterparty as of July 31, 2019:
						Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Amounts of Assets Presented in the Statement of Assets and  Liabilities		Derivatives Available for Offset			Non-Cash Collateral Pledged		Cash Collateral Pledged		Net Amount
Barclays Bank PLC	$	3,051	$	-		$	-	$	-	$	3,051
Citibank, N.A.		494,114		(1,874	)		-		-		492,240
ICBC Standard Bank PLC		46,863		(46,863	)		-		-		-
JPMorgan Chase Bank, N.A.		64,461		-			-		-		64,461
Bank of America, N.A.		4,479		-			-		-		4,479
State Street Bank & Trust Co.		89,273		-			-		-		89,273
UBS AG		26,633		-			-		-		26,633
Total	$	728,874	$	(48,737	)	$	-	$	-	$	680,137
						Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Amounts of Liabilities Presented in the Statement of Assets and  Liabilities		Derivatives Available for Offset			Non-Cash Collateral Received		Cash Collateral Received		Net Amount
Citibank, N.A.	$	1,874	$	(1,874	)	$	-	$	-	$	-
ICBC Standard Bank PLC		56,577		(46,863	)		-		-		9,714
Total	$	58,451	$	(48,737	)	$	-	$	-	$	9,714

GLG Total Return Fund

Offsetting of Financial and Derivative Assets as of July 31, 2019:
	Assets			Liabilities
Swap Agreement - Centrally cleared	$	63,677		$	8,688,566
Swap Agreement - OTC		1,961,237			177,089
Forward Foreign Currency Contracts		2,815,731			2,479,253
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	4,840,645		$	11,344,908
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)	$	(63,677	)	$	(8,688,566	)
Total derivative assets and liabilities subject to an MNA	$	4,776,968		$	2,656,342

Financial Assets, Derivatives, and Collateral Received/(Pledged) by Counterparty as of July 31, 2019:
						Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Amounts of Assets Presented in the Statement of Assets and  Liabilities		Derivatives Available for Offset			Non-Cash Collateral Pledged		Cash Collateral Pledged		Net Amount
Bank of America, N.A.	$	1,046,374	$	-		$	-	$	-	$	1,046,374
Barclays Bank PLC		491,662		(165,338	)		-		-		326,324
Deutsche Bank AG		397,420		-			-		-		397,420
HSBC Bank (USA)		2,841,512		(2,479,253	)		-		-		362,259
Total	$	4,776,968	$	(2,644,591	)	$	-	$	-	$	2,132,377

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American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

						Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Amounts of Liabilities Presented in the Statement of Assets and Liabilities		Derivatives Available for Offset			Non-Cash Collateral Received		Cash Collateral Received		Net Amount
Barclays Bank PLC	$	165,338	$	(165,338	)	$	-	$	-	$	-
Citibank, N.A.		11,751		-			-		-		11,751
HSBC Bank (USA)		2,479,253		(2,479,253	)		-		-		-
Total	$	3,256,460	$	(2,644,591	)	$	-	$	-	$	11,751

6.  Principal Risks

Investing in the Funds may involve certain risks including, but not limited to, those described below.

Counterparty Risk

The Funds are subject to the risk that a party or participant to a transaction, such as a broker or derivative counterparty, will be unwilling or unable to satisfy its obligation to make timely principal, interest or settlement payments or to otherwise honor its obligations to the Funds. As a result the Fund may obtain no recovery of its investment or may only obtain a limited recovery, and any recovery may be delayed. Not all derivative transactions require a counterparty to post collateral, which may expose the Fund to greater losses in the event of a default by a counterparty.

Some of the markets in which the Fund may effect derivative transactions are OTC or “interdealer” markets. The participants in such markets are typically not subject to credit evaluation and regulatory oversight to the same extent as are members of “exchange-based” markets. This exposes the Fund to the risk that a counterparty will not settle a transaction in accordance with its terms and conditions because of a credit or liquidity problem with the counterparty and the recent turbulence in the financial markets highlights the importance of being aware of counterparty risk resulting from OTC derivative transactions. The Fund is subject to the risk that a party or participant to a transaction, such as a broker or derivative counterparty, will be unwilling or unable to satisfy its obligation to make timely principal, interest or settlement payments or to otherwise honor its obligations to the Fund. As a result, the Funds may obtain no recovery of its investment or may only obtain a limited recovery, and any recovery may be delayed. Not all derivative transactions require a counterparty to post collateral, which may expose the Funds to greater losses in the event of a default by a counterparty.

Credit Risk

The Funds are subject to the risk that the issuer or guarantor of an obligation, or the counterparty to a transaction, including a derivatives contract or a loan, will fail to make timely payment of interest or principal or otherwise honor its obligations or default completely. The strategies utilized by the sub-advisors require accurate and detailed credit analysis of issuers and there can be no assurance that its analysis will be accurate or complete. The Funds may be subject to substantial losses in the event of credit deterioration or bankruptcy of one or more issuers in its portfolio. Financial strength and solvency of an issuer are the primary factors influencing credit risk. In addition, inadequacy of collateral or credit enhancement for a debt instrument may affect its credit risk. Credit risk may change over the life of an instrument and debt obligations which are rated by rating agencies may be subject to downgrade. The credit ratings of debt instruments and investments represent the rating agencies’ opinions regarding their credit quality and are not a guarantee of future credit performance of such securities. Rating agencies attempt to evaluate the safety of the timely payment of principal and interest (or dividends) and do not evaluate the risks of fluctuations in market value. The ratings assigned to securities by rating agencies do not purport to fully reflect the true risks of an investment. Further, in recent years many highly-rated structured securities have been subject to substantial losses as the economic assumptions on which their ratings were based proved to be materially inaccurate. A decline in the credit rating of an individual security held by the Funds may have an adverse impact on its price and make it difficult for the Funds to sell it. Ratings represent a rating

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agency’s opinion regarding the quality of the security and are not a guarantee of quality. 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. Credit risk is typically greater for securities with ratings that are below investment grade (commonly referred to as “junk bonds”). Since the Funds can invest significantly in lower quality debt securities considered speculative in nature, this risk will be substantial. A downgrade or default affecting any of the Funds’ securities could affect the Funds’ performance.

Currency Risk

The Funds may have exposure to foreign currencies by investing in securities denominated in non-U.S. currencies or in securities denominated in non-U.S. currencies, purchasing or selling forward currency exchange contracts in non-U.S. currencies, non-U.S. currency futures contracts, options on non-U.S. currencies and non-U.S. currency futures and swaps for cross-currency investments. Foreign currencies may decline in value relative to the U.S. dollar, or, in the case of hedging positions, the U.S. dollar may decline in value relative to the currency being hedged, and thereby affect a Fund’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies. Currency exchange rates may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns of the Funds. Currency futures, forwards, options or swaps may not always work as intended, and in specific cases, the Funds may be worse off than if it had not used such instrument(s). There may not always be suitable hedging instruments available. Even where suitable hedging instruments are available, the Funds may choose to not hedge its currency risks.

Custody Risk

The Funds may invest in markets that are less developed than those in the U.S., which may expose the Funds to risks in the process of clearing and settling trades and the holding of securities by foreign banks, agents and depositories. Investments in frontier and emerging markets may be subject to greater custody risks than investments in more developed markets.

Derivatives Risk

Derivatives may involve significant risk. The use of derivative instruments may expose the Funds to additional risks that they would not be subject to if they invested directly in the securities or other instruments underlying those derivatives, including the high degree of leverage often embedded in such instruments, and potential material and prolonged deviations between the theoretical value and realizable value of a derivative. Some derivatives have the potential for unlimited loss, regardless of the size of the Funds’ initial investment. Derivatives may be illiquid and may be more volatile than other types of investments. The Funds may buy or sell derivatives not traded on an exchange and which may be subject to heightened liquidity and valuation risk. Derivative investments can increase portfolio turnover and transaction costs. Derivatives also are subject to counterparty risk and credit risk. As a result, the Funds may obtain no recovery of their investment or may only obtain a limited recovery, and any recovery may be delayed. Not all derivative transactions require a counterparty to post collateral, which may expose the Funds to greater losses in the event of a default by a counterparty.

Foreign Investing and Emerging Markets 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, (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

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transaction settlement in some foreign markets. To the extent the Funds invests a significant portion of its assets in securities of a single country or region, it is more likely to be affected by events or conditions of that country or region. In addition, the economies and political environments of emerging market countries tend to be more unstable than those of developed countries, resulting in more volatile rates of return than the developed markets and substantially greater risk to investors. There may be very limited oversight of certain foreign banks or securities depositories that hold foreign securities and currency and the laws of certain countries may limit the ability to recover such assets if a foreign bank or depository or their agents goes bankrupt. When investing in emerging markets, the risks of investing in foreign securities are heightened. Emerging markets have unique risks that are greater than, or in addition to, investing in developed markets because emerging markets are generally smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other developed markets. There are also risks of: greater political uncertainties; an economy’s dependence on revenues from particular commodities or on international aid or development assistance; currency transfer restrictions; a limited number of potential buyers for such securities, resulting in increased volatility and limited liquidity for emerging market securities; trading suspensions; and delays and disruptions in securities settlement procedures. In addition, there may be less information available to make investment decisions and more volatile rates of return.

Forward Foreign Currency Contracts Risk

Forward foreign currency contracts, including non-deliverable forwards, are derivative instruments pursuant to a contract with a counterparty to pay a fixed price for an agreed amount of securities or other underlying assets at an agreed date or to buy or sell a specific currency at a future date at a price set at the time of the contract. The use of forward foreign currency contracts may expose the Funds to additional risks that it would not be subject to if it invested directly in the securities or currencies underlying the forward foreign currency contract.

Frontier Markets Risk

Frontier market countries generally have smaller economies and less developed capital markets or legal, regulatory and political systems than traditional emerging market countries. As a result, the risks of investing in emerging market countries are magnified in frontier market countries. The magnification of risks are the result of (1) the potential for extreme price volatility and illiquidity in frontier markets; (2) government ownership or control of parts of the private sector or other protectionist measures; (3) large currency fluctuations; (4) fewer companies and investment opportunities; or (5) inadequate investor protections and regulatory enforcement. In certain frontier and emerging markets, fraud and corruption may be more prevalent than in developed market countries. Investments that the Fund holds may be exposed to these risks, which could have a negative impact on their value. Additional risks of frontier market securities may include: greater political instability (including the risk of war or natural disaster); increased risk of nationalization, expropriation, or other confiscation of assets of issuers to which the Fund is exposed; increased risk of embargoes or economic sanctions on a country, sector or issuer; greater risk of default (by both government and private issuers); more substantial governmental involvement in the economy; less governmental supervision and regulation; differences in, or lack of, auditing and financial reporting standards, which may result in unavailability of material information about issuers; less developed legal systems; inability to purchase and sell investments or otherwise settle security or derivative transactions (i.e., a market freeze); unavailability of currency hedging techniques; slower clearance and settlement; difficulties in obtaining and/or enforcing legal judgments; and significantly smaller market capitalizations of issuers.

High Portfolio Turnover Risk

Portfolio turnover is a measure of a Fund’s trading activity over a one-year period. A portfolio turnover rate of 100% would indicate that a Fund sold and replaced the entire value of its securities holdings during the period. High portfolio turnover could increase the Fund’s transaction costs because of increased broker commissions resulting from such transactions. These costs are not reflected in the Fund’s annual operating expenses or in the expense example, but they can have a negative impact on performance and generate higher capital gain

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distributions to shareholders than if the Fund had a low portfolio turnover rate. Frequent trading by a Fund could also result in increased realized net capital gains, distributions of which are taxable to a Fund’s shareholders when Fund shares are held in a taxable account (including net short-term capital gain distributions, which are taxable to them as ordinary income).

Illiquid and Restricted Securities Risk

Securities not registered in the U.S. under the Securities Act, including Rule 144A securities, are restricted as to their resale. Such securities may not be listed on an exchange and may have no active trading market. They may be more difficult to purchase or sell at an advantageous time or price because such securities may not be readily marketable in broad public markets. The Funds may not be able to sell a restricted security when the sub-advisor considers it desirable to do so and/or may have to sell the security at a lower price than the Funds believe is its fair market value. In addition, transaction costs may be higher for restricted securities and the Funds may receive only limited information regarding the issuer of a restricted security. The Funds may have to bear the expense of registering restricted securities for resale and the risk of substantial delays in effecting the registration.

Interest Rate Risk

Investments in fixed-income securities or derivatives that are influenced by interest rates are subject to interest rate risk. The Funds may be particularly sensitive to changes in interest rates if it invests in debt securities with intermediate and long terms to maturity. Debt securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than debt securities with shorter durations. For example, if a bond has a duration of four years, a 1% increase in interest rates could be expected to result in a 4% decrease in the value of the bond. Yields of debt securities will fluctuate over time. Following the financial crisis that started in 2008, the Federal Reserve has attempted to stabilize the economy and support the economic recovery by keeping the federal funds rate (the interest rate at which depository institutions lend reserve balances to each other overnight) at or near zero percent. The Federal Reserve has raised the federal funds rate several times since December 2015 and may continue to increase rates in the future. Interest rates may rise significantly and/or rapidly, potentially resulting in substantial losses to the Funds. During periods of very low or negative interest rates, the Funds may be unable to maintain positive returns. Certain European countries and Japan have recently experienced negative interest rates on deposits and debt securities have traded at negative yields. Negative interest rates may become more prevalent among non-U.S. issuers, and potentially within the United States. Changing interest rates, including rates that fall below zero, may have unpredictable effects on markets, may result in heightened market volatility and may detract from Fund performance to the extent the Funds are exposed to such interest rates.

Leverage Risk

The Funds’ use of futures, forward foreign currency contracts, swaps, other derivative instruments and selling securities short will have the economic effect of financial leverage. Financial leverage magnifies the exposure to the swings in prices of an asset or class of assets underlying a derivative instrument and results in increased volatility, which means that the Funds will have the potential for greater losses than if the Funds do not use the derivative instruments that have a leveraging effect. Leverage may result in losses that exceed the amount originally invested and may accelerate the rate of losses. Leverage tends to magnify, sometimes significantly, the effect of an increase or decrease in the Funds’ exposure to an asset or class of assets and may cause the Funds’ NAV to be volatile.

Liquidity Risk

When there is little or no active trading market for a specific type of security it can become more difficult to purchase or sell the securities at or near their perceived value. During such periods, certain investments held by the Funds may be difficult to sell or other investments may be difficult to purchase at favorable times or prices. As a

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result, the Funds may have to lower the price on certain securities that it is trying to sell, sell other securities instead or forgo an investment opportunity, any of which could have a negative effect on Fund management or performance. Redemptions by a few large investors in the Funds at such times may have a significant adverse effect on the Funds’ NAV and remaining Fund shareholders. In addition, the market-making capacity of dealers in certain types of securities has been reduced in recent years, in part as a result of structural and regulatory changes, such as fewer proprietary trading desks and increased regulatory capital requirements for broker-dealers. Further, many broker-dealers have reduced their inventory of certain debt securities. This could negatively affect the Funds’ ability to buy or sell debt securities and increase the related volatility and trading costs. The Funds may lose money if it is forced to sell certain investments at unfavorable prices to meet redemption requests or other cash needs.

Market Risk

Conditions in the U.S. and many foreign economies have resulted, and may continue to result, in certain instruments experiencing unusual liquidity issues, increased price volatility and, in some cases, credit downgrades and increased likelihood of default. These events have reduced the willingness and ability of some lenders to extend credit, and have made it more difficult for some borrowers to obtain financing on attractive terms, if at all. In some cases, traditional market participants have been less willing to make a market in some types of debt instruments, which has affected the liquidity of those instruments. During times of market turmoil, investors tend to look to the safety of securities issued or backed by the U.S. Treasury, causing the prices of these securities to rise and the yields to decline. Reduced liquidity in fixed income and credit markets may negatively affect many issuers worldwide. In addition, global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely impact issuers in a different country or region. A rise in protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the economies of many nations in ways that cannot necessarily be foreseen at the present time.

In response to the financial crisis, the U.S. and other governments, the Federal Reserve and certain foreign central banks have taken steps to support financial markets. In some countries where economic conditions are recovering, they are nevertheless perceived as still fragile. Withdrawal of government support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeeding, could adversely impact the value and liquidity of certain securities. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasi-governmental organizations, including changes in tax laws. The impact of new financial regulation legislation on the markets and the practical implications for market participants may not be fully known for some time. Regulatory changes are causing some financial services companies to exit long-standing lines of business, resulting in dislocations for other market participants. In addition, political and diplomatic events within the U.S. and abroad, such as the United States government’s inability at times to agree on a long-term budget and deficit reduction plan, the threat of a federal government shutdown and threats not to increase the federal government’s debt limit, may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree. The U.S. government has recently reduced the federal corporate income tax rates and future legislative, regulatory and policy changes may result in more restrictions on international trade, less stringent prudential regulation of certain players in the financial markets, and significant new investments in infrastructure and national defense. Markets may react strongly to expectations about the changes in these policies, which could increase volatility, especially if the market’s expectations for changes in government policies are not borne out.

Changes in market conditions will not have the same impact on all types of securities. Interest rates have been unusually low in recent years in the United States and abroad. Because there is little precedent for this situation, it is difficult to predict the impact of a significant rate increase on various markets. For example, because investors may buy securities or other investments with borrowed money, a significant increase in interest rates may cause a decline in the markets for those investments. Because of the sharp decline in the worldwide price of oil, there is a concern that oil producing nations may withdraw significant assets now held in U.S. Treasuries, which could force a substantial increase in interest rates. Regulators have expressed concern that rate

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increases may cause investors to sell fixed income securities faster than the market can absorb them, contributing to price volatility. In addition, there is a risk that the prices of goods and services in the U.S. and many foreign economies may decline over time, known as deflation (the opposite of inflation). Deflation may have an adverse effect on stock prices and creditworthiness and may make defaults on debt more likely. If a country’s economy slips into a deflationary pattern, it could last for a prolonged period and may be difficult to reverse.

The precise details and the resulting impact of the United Kingdom’s vote to leave the European Union (the “EU”), commonly referred to as “Brexit,” are not yet known. The effect on the United Kingdom’s economy will likely depend on the nature of trade relations with the EU and other major economies following its exit, which are matters to be negotiated. The outcomes may cause increased volatility and have a significant adverse impact on world financial markets, other international trade agreements, and the United Kingdom and European economies, as well as the broader global economy for some time, which could significantly adversely affect the value of the Fund’s investments in the United Kingdom and Europe.

Market Timing Risk

Because the Funds invest in foreign securities, it is particularly subject to the risk of market timing activities. Frequent trading by Fund shareholders poses risks to other shareholders in the Funds, including (i) the dilution of the Funds’ NAV, (ii) an increase in the Funds’ expenses, and (iii) interference with the portfolio manager’s ability to execute efficient investment strategies. Because of specific securities in which the Funds may invest, it could be subject to the risk of market timing activities by shareholders. Some examples of these types of securities are high-yield and foreign securities. The limited trading activity of some high-yield securities may result in market prices that do not reflect the true market value of these securities. The Funds generally prices foreign securities using their closing prices from the foreign markets in which they trade, typically prior to the Funds’ calculation of its NAV. These prices may be affected by events that occur after the close of a foreign market but before the Funds price its shares. In such instances, the Funds may fair value high yield and foreign securities. However, some investors may engage in frequent short-term trading in the Funds to take advantage of any price differentials that may be reflected in the NAV of the Funds’ shares. While the Manager monitors trading in the Funds, there is no guarantee that it can detect all market timing activities.

Non-Diversification Risk

The GLG Total Return Fund is non-diversified, which means it may focus its investments in the securities of a comparatively small number of issuers. Investments in securities of a limited number of issuers exposes the Funds to greater market risk and potential losses than if assets were diversified among the securities of a greater number of issuers.

Other Investment Companies Risk

The Funds may invest in shares of other registered investment companies, including money market funds, ETFs. To the extent that the Funds invest in shares of other registered investment companies, the Funds will indirectly bear the fees and expenses, including for example, advisory and administrative fees, charged by those investment companies in addition to the Funds’ direct fees and expenses and will be subject to the risks associated with investments in those companies. For example, the Funds’ investments in money market funds are subject to interest rate risk, credit risk, and market risk. The Funds must rely on the investment company in which it invests to achieve its investment objective. If the investment company fails to achieve its investment objective, the value of the Funds’ investment may decline, adversely affecting the Funds’ performance. ETFs are subject to the following risks that do not apply to conventional funds: (1) the market price of an ETF’s shares may trade at a discount or premium to its NAV; (2) an active trading market for an ETF’s shares may not develop or be maintained; or (3) trading of an ETF’s shares may be halted if the listing exchange’s officials deem such action appropriate, the shares are delisted from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally. An ETF that tracks an index may not

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precisely replicate the returns of its benchmark index. To the extent the Funds invest in other investment companies that invest in equity securities, fixed-income securities and/or foreign securities, or that track an index, the Funds are subject to the risks associated with the underlying investments held by the investment company or the index fluctuations to which the investment company is subject. ETFs have expenses associated with their operation, typically including advisory fees.

Redemption Risk

The Funds may experience periods of heavy redemptions that could cause the Funds to sell assets at inopportune times or at a loss or depressed value. Redemption risk is greater to the extent that one or more investors or intermediaries control a large percentage of investments in the Funds, have short investment horizons, or have unpredictable cash flow needs. A general rise in interest rates has the potential to cause investors to move out of fixed income securities on a large scale, which may increase redemptions from mutual funds that hold large amounts of fixed income securities. This, coupled with a reduction in the ability or willingness of dealers and other institutional investors to buy or hold fixed income securities, may result in decreased liquidity and increased volatility in the fixed income markets, and heightened redemption risk. Heavy redemptions, whether by a few large investors or many smaller investors, could hurt the Funds’ performance. This risk is heightened if the Fund invests in emerging market securities, which are generally less liquid than the securities of U.S. and other developed markets. The sale of assets to meet redemption requests may create net capital gains or losses, which could cause the Funds to have to distribute substantial capital gains.

Sovereign and Quasi Sovereign Debt Risk

An investment in sovereign and quasi-sovereign debt obligations involves special risks not present in corporate debt obligations. Sovereign and quasi-sovereign debt securities are issued or guaranteed by a sovereign government or entity affiliated with or backed by a sovereign government. The issuer of the sovereign or quasi-sovereign debt that controls the repayment of the debt may be unable or unwilling to repay principal or interest when due, and the Fund may have limited recourse in the event of a default. In addition, these investments are subject to risk of payment delays or defaults due to (1) country cash flow problems, (2) insufficient foreign currency reserves, (3) political considerations, (4) large debt positions relative to the country’s economy, (5) policies toward foreign lenders or investors, (6) the failure to implement economic reforms required by the International Monetary Fund or other multilateral agencies, or (7) an inability or unwillingness to repay debts. It may be particularly difficult to enforce the rights of debt holders in frontier and emerging markets. A governmental entity that defaults on an obligation may request additional time in which to pay or receive further loans or may seek to restructure its obligations to reduce interest rates or outstanding principal. There is no legal process for collecting sovereign and quasi-sovereign debt that a government does not pay nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected. Sovereign and quasi-sovereign debt risk is increased for emerging and frontier markets issuers, which are among the largest debtors to commercial banks and foreign governments. At times, certain emerging market countries have declared moratoria on the payment of principal and interest on external debt. Certain emerging market countries have experienced difficulty in servicing their sovereign debt on a timely basis, which has led to defaults and the restructuring of certain indebtedness.

Swap Agreement Risk

The GLG Total Return Fund may invest in swap agreements. Swaps can involve greater risks than a direct investment in an underlying asset, because swaps typically include a certain amount of embedded leverage and as such are subject to leveraging risk. If swaps are used as a hedging strategy, a Fund is subject to the risk that the hedging strategy may not eliminate the risk that is intended to offset, due to, among other reasons, the occurrence of unexpected price movements or the non-occurrence of expected price movements. Swaps also may be difficult to value. Interest rate swaps, total return swaps, currency swaps, credit default swaps and commodities swaps are subject to counterparty risk, credit risk and liquidity risk. In addition, interest rate swaps are subject to interest

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rate risk, total return swaps are subject to market risk, and interest rate risk if the underlying securities are bonds or other debt obligations, currency swaps are subject to currency risk, and commodities swaps are subject to commodities risk.

Variable and Floating Rate Securities Risk

The coupons on certain fixed income securities in which a Fund may invest are not fixed and may fluctuate based upon changes in market rates. The coupon on a floating rate security is generally based on an interest rate such as a money-market index, LIBOR or a Treasury bill rate. Such securities are subject to interest rate risk and may fluctuate in value in response to interest rate changes if there is a delay between changes in market interest rates and the interest reset date for the obligation, or for other reasons. As short-term interest rates decline, the coupons on variable and floating rate securities typically decrease. Alternatively, during periods of rising interest rates, changes in the coupons of variable and floating rate securities may lag behind changes in market rates or may have limits on the maximum increases in the coupon rates. The value of variable and floating rate securities may decline if their coupons do not rise as much, or as quickly, as interest rates in general. Conversely, variable and floating rate securities will not generally increase in value if interest rates decline. Variable and floating rate securities are less effective at locking in a particular yield and are subject to credit risk.

7.  Federal Income and Excise Taxes

It is the policy of each Fund to qualify as a regulated investment company (“RIC”), by complying with all applicable provisions of Subchapter M of the Internal Revenue Code, as amended, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes. For federal income tax purposes, each Fund is treated as a single entity for the purpose of determining such qualification.

The Funds do not have any unrecorded tax liabilities in the accompanying financial statements. The Frontier Markets Income Fund, for each of the tax years in the four year period ended January 31, 2019 and the GLG Total Return Fund, for each of the tax years in the three year period ended January 31, 2019 remain subject to examination by the Internal Revenue Service. If applicable, the Funds recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statements of Operations.

The Funds may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on returns of income earned or gains realized or repatriated. Taxes are accrued and applied to net investment income, net realized capital gains and net unrealized appreciation (depreciation), as applicable, as the income is earned or capital gains are recorded.

Dividends are categorized in accordance with income tax regulations which may treat certain transactions differently than U.S. GAAP. Accordingly, the character of distributions and composition of net assets for tax purposes may differ from those reflected in the accompanying financial statements. The Funds also utilize earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction.

As of July 31, 2019 the tax cost for each Fund and their respective gross unrealized appreciation (depreciation) were as follows:

Fund	Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Frontier Markets Income	$	426,732,760	$	11,171,964	$	(18,633,629	)	$	(7,461,665	)
GLG Total Return		211,003,022		19,229,117		(24,718,627	)		(5,489,510	)

Under the Regulated Investment Company Modernization Act of 2010 (“RIC MOD”), net capital losses recognized by the Funds in taxable years beginning after December 22, 2010 are carried forward indefinitely and retain their character as short-term and/or long-term losses.

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During the period January 31, 2019, the Funds had the following post RIC MOD capital loss carryforwards:

Fund	Short-Term Capital Loss Carryforwards		Long-Term Capital Loss Carryforwards
Frontier Markets Income	$	4,529,552	$	11,401,146
GLG Total Return		-		-

8.  Investment Transactions

The aggregate cost of purchases and proceeds from sales and maturities of investments, other than short-term obligations, for the period ended July 31, 2019 were as follows:

Fund	Purchases (non-U.S. Government Securities)		Purchases of U.S. Government Securities		Sales (non-U.S. Government Securities)		Sales of U.S. Government Securities
Frontier Markets Income	$	149,091,495	$	-	$	36,386,868	$	-
GLG Total Return		4,256,970		-		41,322,683		-

A summary of the Funds’ transactions in the USG Select Fund for the period ended July 31, 2019 were as follows:

Fund	Type of Transaction	January 31, 2019 Shares/Fair Value		Purchases		Sales		July 31, 2019 Shares/Fair Value		Dividend Income
Frontier Markets Income	Direct	$	21,053,587	$	225,638,550	$	202,685,354	$	44,006,783	$	385,061
GLG Total Return	Direct		4,402,966		258,904,532		257,775,201		5,532,297		126,874

9.  Borrowing Arrangements

Effective November 15, 2018 (the “Effective Date”), the Funds, along with certain other funds managed by the Manager (“Participating Funds”), entered into a committed revolving line of credit (the “Committed Line”) agreement with State Street Bank and Trust Company (the “Bank”) to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Committed Line is $250 million with interest at a rate equal to the higher of (a) one-month London Inter-Bank Offered Rate (“LIBOR”) plus 1.25% per annum or (b) the Federal Funds rate plus 1.25% per annum on amounts borrowed. Each of the Participating Funds will pay a closing fee of $100,000 on the Effective Date and a quarterly commitment fee at a rate of 0.25% per annum on the unused portion of the Committed Line amount. The Committed Line expires November 14, 2019, unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

On the Effective Date, the Funds, along with certain other Participating Funds managed by the Manager, also entered into an uncommitted discretionary demand revolving line of credit (the “Uncommitted Line”) agreement with the Bank to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Uncommitted Line is $50 million with interest at a rate equal to the higher of (a) one-month LIBOR plus 1.25% per annum or (b) the Federal Funds rate plus 1.25% per annum on each outstanding loan. Each of the Participating Funds will pay a closing fee of $35,000 on the Effective Date. The Uncommitted Line expires November 14, 2019 unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

The Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statements of Operations, along with commitment fees, that have been allocated among the Participating Funds based on average daily net assets. During the year ended July 31, 2019, the Funds did not utilize this facility.

63

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

10.  Capital Share Transactions

The tables below summarize the activity in capital shares for each Class of the Funds:

	Institutional Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Frontier Markets Income Fund	Shares			Amount			Shares			Amount
Shares sold		1,728,513		$	14,988,824			3,070,392		$	28,213,463
Reinvestment of dividends		202,491			1,748,169			355,822			3,176,717
Shares redeemed		(622,198	)		(5,408,778	)		(3,251,151	)		(28,839,715	)
Redemption fees		-			6,251			-			29,120
Net increase in shares outstanding		1,308,806		$	11,334,466			175,063		$	2,579,585
	Y Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Frontier Markets Income Fund	Shares			Amount			Shares			Amount
Shares sold		14,780,623		$	128,686,988			12,531,283		$	114,296,669
Reinvestment of dividends		941,042			8,127,349			1,247,796			11,082,499
Shares redeemed		(2,420,287	)		(20,946,253	)		(4,502,098	)		(39,757,884	)
Redemption fees		-			4,617			-			48,302
Net increase in shares outstanding		13,301,378		$	115,872,701			9,276,981		$	85,669,586
	Investor Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Frontier Markets Income Fund	Shares			Amount			Shares			Amount
Shares sold		2,309,828		$	20,009,736			2,973,069		$	26,636,928
Reinvestment of dividends		280,866			2,422,504			418,581			3,726,381
Shares redeemed		(973,963	)		(8,422,808	)		(2,122,257	)		(18,832,117	)
Redemption fees		-			17,482			-			7,815
Net increase in shares outstanding		1,616,731		$	14,026,914			1,269,393		$	11,539,007
	A Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Frontier Markets Income Fund	Shares			Amount			Shares			Amount
Shares sold		73,278		$	634,563			206,492		$	1,906,208
Reinvestment of dividends		13,939			120,210			29,710			266,124
Shares redeemed		(72,777	)		(631,887	)		(253,821	)		(2,289,629	)
Redemption fees		-			700			-			1,491
Net increase (decrease) in shares outstanding		14,440		$	123,586			(17,619	)	$	(115,806	)
	C Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
Frontier Markets Income Fund	Shares			Amount			Shares			Amount
Shares sold		215,145		$	1,861,720			463,799		$	4,257,101
Reinvestment of dividends		47,197			405,830			83,406			739,780
Shares redeemed		(119,325	)		(1,030,265	)		(233,451	)		(2,078,167	)
Redemption fees		-			999			-			2,271
Net increase in shares outstanding		143,017		$	1,238,284			313,754		$	2,920,985

64

American Beacon Funds^SM

Notes to Financial Statements

July 31, 2019 (Unaudited)

	Institutional Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
GLG Total Return Fund	Shares			Amount			Shares			Amount
Shares sold		-		$	-			100,000		$	1,090,000
Reinvestment of dividends		-			-			1,175			12,087
Shares redeemed		-			-			(100,000	)		(1,029,000	)
Net increase in shares outstanding		-		$	-			1,175		$	73,087
	Y Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
GLG Total Return Fund	Shares			Amount			Shares			Amount
Shares sold		2,764		$	27,850			24,399		$	255,017
Reinvestment of dividends		-			-			2,128			21,812
Shares redeemed		-			-			(58,066	)		(610,285	)
Net increase (decrease) in shares outstanding		2,764		$	27,850			(31,539	)	$	(333,456	)
	Investor Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
GLG Total Return Fund	Shares			Amount			Shares			Amount
Shares sold		99		$	1,000			858		$	9,000
Reinvestment of dividends		-			-			579			5,902
Shares redeemed		-			-			(2,078	)		(21,008	)
Net increase (decrease) in shares outstanding		99		$	1,000			(641	)	$	(6,106	)
	A Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
GLG Total Return Fund	Shares			Amount			Shares			Amount
Reinvestment of dividends		-		$	-			393		$	3,999
Net increase in shares outstanding		-		$	-			393		$	3,999
	C Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
GLG Total Return Fund	Shares			Amount			Shares			Amount
Reinvestment of dividends		-		$	-			390		$	3,911
Net increase in shares outstanding		-		$	-			390		$	3,911
	Ultra Class
	Six Months Ended July 31, 2019						Year Ended January 31, 2019
	(unaudited)
GLG Total Return Fund	Shares			Amount			Shares			Amount
Shares sold		3,893,292		$	39,584,797			16,668,784		$	177,675,100
Reinvestment of dividends		-			-			1,824,890			18,796,370
Shares redeemed		(28,672,027	)		(291,422,256	)		(43,275,069	)		(461,146,321	)
Net increase in shares outstanding		(24,778,735	)	$	(251,837,459	)		(24,781,395	)	$	(264,674,851	)

11.  Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Funds’ financial statements through this date.

65

American Beacon Frontier Markets Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Institutional Class
	Six Months Ended July 31,			Year Ended January 31,												February 25, 2014A to January 31,
	2019			2019B			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	8.68		$	9.62		$	8.96		$	8.35		$	9.68		$	10.00
Income (loss) from investment operations:
Net investment income		0.38			0.80			0.77			0.88			0.67			0.59
Net gains (losses) on investments (both realized and unrealized)		0.18			(0.96	)		0.61			0.44			(1.30	)		(0.30	)
Total income (loss) from investment operations		0.56			(0.16	)		1.38			1.32			(0.63	)		0.29
Less distributions:
Dividends from net investment income		(0.38	)		(0.78	)		(0.72	)		(0.08	)		(0.50	)		(0.59	)
Distributions from net realized gains		-			-			-			-			-			(0.02	)
Tax return of capital		-			-			-			(0.63	)C		(0.20	)C		-
Total distributions		(0.38	)		(0.78	)		(0.72	)		(0.71	)		(0.70	)		(0.61	)
Redemption fees added to beneficial interestsD		-			-			-			-			-			-
Net asset value, end of period	$	8.86		$	8.68		$	9.62		$	8.96		$	8.35		$	9.68
Total returnE		6.64	%F		(1.58	)%		15.92	%		16.20	%		(6.98	)%		2.76	%F
Ratios and supplemental data:
Net assets, end of period	$	75,461,187		$	62,523,243		$	67,653,731		$	13,047,515		$	10,531,288		$	9,225,629
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.07	%G		1.20	%		1.17	%		1.40	%		1.14	%		1.95	%G
Expenses, net of reimbursements or recoupments		1.15	%G		1.17	%I		1.15	%		1.27	%H		1.15	%		1.15	%G
Net investment income, before expense reimbursements or recoupments		9.39	%G		8.87	%		9.04	%		9.98	%		7.14	%		5.43	%G
Net investment income, net of reimbursements or recoupments		9.31	%G		8.90	%		9.06	%		10.11	%		7.13	%		6.22	%G
Portfolio turnover rate		13	%F		21	%		22	%		69	%		68	%		23	%J

^A Commencement of operations.

^B On October 1, 2018, Aberdeen Asset Managers Limited began managing a portion of the assets of the American Beacon Frontier Markets Income Fund.

^C Tax return of capital is calculated based on outstanding shares at the time of distribution.

^D Amount represents less than $0.01 per share.

^E Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^F Not annualized.

^G Annualized.

^H Voluntary expense cap. See Note 2 of the Notes to the Financial Statements.

^I Includes non-operating expenses consisting of loan interest expenses. The expenses, net of reimbursements or recoupments ratio excluding non-operating expenses is 1.15%.

^J Portfolio turnover rate is for the period from February 25, 2014 through January 31, 2015 and is not annualized.

See accompanying notes

66

American Beacon Frontier Markets Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Y Class
	Six Months Ended July 31,			Year Ended January 31,												February 25, 2014A to January 31,
	2019			2019B			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	8.68		$	9.63		$	8.97		$	8.34		$	9.69		$	10.00
Income (loss) from investment operations:
Net investment income		0.38			0.74			0.79			0.90			0.61			0.58
Net gains (losses) on investments (both realized and unrealized)		0.19			(0.92	)		0.58			0.44			(1.28	)		(0.28	)
Total income (loss) from investment operations		0.57			(0.18	)		1.37			1.34			(0.67	)		0.30
Less distributions:
Dividends from net investment income		(0.38	)		(0.77	)		(0.71	)		(0.08	)		(0.50	)		(0.59	)
Distributions from net realized gains		-			-			-			-			-			(0.02	)
Tax return of capital		-			-			-			(0.63	)C		(0.18	)C		-
Total distributions		(0.38	)		(0.77	)		(0.71	)		(0.71	)		(0.68	)		(0.61	)
Redemption fees added to beneficial interestsD		-			-			-			-			-			-
Net asset value, end of period	$	8.87		$	8.68		$	9.63		$	8.97		$	8.34		$	9.69
Total returnE		6.72	%F		(1.76	)%		15.83	%		16.37	%		(7.40	)%		2.87	%F
Ratios and supplemental data:
Net assets, end of period	$	272,940,652		$	151,728,470		$	79,007,953		$	23,715,300		$	29,434,613		$	138,082,358
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.14	%G		1.29	%		1.25	%		1.48	%		1.18	%		1.50	%G
Expenses, net of reimbursements or recoupments		1.19	%G		1.27	%I		1.25	%		1.37	%H		1.25	%		1.25	%G
Net investment income, before expense reimbursements or recoupments		9.29	%G		8.79	%		8.94	%		10.49	%		7.35	%		6.33	%G
Net investment income, net of reimbursements or recoupments		9.24	%G		8.80	%		8.94	%		10.61	%		7.28	%		6.59	%G
Portfolio turnover rate		13	%F		21	%		22	%		69	%		68	%		23	%J

^A  Commencement of operations.

^B  On October 1, 2018, Aberdeen Asset Managers Limited began managing a portion of the assets of the American Beacon Frontier Markets Income Fund.

^C  Tax return of capital is calculated based on shares outstanding at the time of distribution.

^D  Amount represents less than $0.01 per share.

^E  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^F  Not annualized.

^G  Annualized.

^H  Voluntary expense cap. See Note 2 of the Notes to the Financial Statements.

^I  Includes non-operating expenses consisting of loan interest expenses. The expenses, net of reimbursements or recoupments ratio excluding non-operating expenses is 1.25%.

^J  Portfolio turnover rate is for the period from February 25, 2014 through January 31, 2015 and is not annualized.

See accompanying notes

67

American Beacon Frontier Markets Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Investor Class
	Six Months Ended July 31,			Year Ended January 31,												February 25, 2014A to January 31,
	2019			2019B			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	8.67		$	9.61		$	8.95		$	8.35		$	9.68		$	10.00
Income (loss) from investment operations:
Net investment income		0.37			0.74			0.78			0.85			0.63			0.55
Net gains (losses) on investments (both realized and unrealized)		0.18			(0.93	)		0.57			0.43			(1.30	)		(0.29	)
Total income (loss) from investment operations		0.55			(0.19	)		1.35			1.28			(0.67	)		0.26
Less distributions:
Dividends from net investment income		(0.37	)		(0.75	)		(0.69	)		(0.07	)		(0.47	)		(0.56	)
Distributions from net realized gains		-			-			-			-			-			(0.02	)
Tax return of capital		-			-			-			(0.61	)C		(0.19	)C		-
Total distributions		(0.37	)		(0.75	)		(0.69	)		(0.68	)		(0.66	)		(0.58	)
Redemption fees added to beneficial interestsD		-			-			-			-			-			-
Net asset value, end of period	$	8.85		$	8.67		$	9.61		$	8.95		$	8.35		$	9.68
Total returnE		6.49	%F		(1.94	)%		15.59	%		15.69	%		(7.33	)%		2.47	%F
Ratios and supplemental data:
Net assets, end of period	$	63,827,288		$	48,475,727		$	41,560,845		$	20,120,332		$	15,934,048		$	13,987,805
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.45	%G		1.52	%		1.41	%		1.72	%		1.44	%		1.78	%G
Expenses, net of reimbursements or recoupments		1.45	%G		1.52	%I		1.51	%		1.63	%H		1.53	%		1.53	%G
Net investment income, before expense reimbursements or recoupments		9.06	%G		8.57	%		8.73	%		9.62	%		6.84	%		5.86	%G
Net investment income, net of reimbursements or recoupments		9.06	%G		8.57	%		8.64	%		9.71	%		6.76	%		6.12	%G
Portfolio turnover rate		13	%F		21	%		22	%		69	%		68	%		23	%J

^A Commencement of operations.

^B On October 1, 2018, Aberdeen Asset Managers Limited began managing a portion of the assets of the American Beacon Frontier Markets Income Fund.

^C Tax return of capital is calculated based on outstanding shares at the time of distribution.

^D Amount represents less than $0.01 per share.

^E Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^F Not annualized.

^G Annualized.

^H Voluntary expense cap. See Note 2 of the Notes to the Financial Statements.

^I Includes non-operating expenses consisting of loan interest expenses. The expenses, net of reimbursements or recoupments ratio excluding non-operating expenses is 1.50%.

^J Portfolio turnover rate is for the period from February 25, 2014 through January 31, 2015 and is not annualized.

See accompanying notes

68

American Beacon Frontier Markets Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	A Class
	Six Months Ended July 31,			Year Ended January 31,												February 25, 2014A to January 31,
	2019			2019B			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	8.65		$	9.62		$	8.96		$	8.35		$	9.68		$	10.00
Income (loss) from investment operations:
Net investment income		0.40			0.75			0.81			0.90			0.62			0.54
Net gains (losses) on investments (both realized and unrealized)		0.17			(0.98	)		0.53			0.39			(1.29	)		(0.29	)
Total income (loss) from investment operations		0.57			(0.23	)		1.34			1.29			(0.67	)		0.25
Less distributions:
Dividends from net investment income		(0.36	)		(0.74	)		(0.68	)		(0.07	)		(0.47	)		(0.55	)
Distributions from net realized gains		-			-			-			-			-			(0.02	)
Tax return of capital		-			-			-			(0.61	)C		(0.19	)C		-
Total distributions		(0.36	)		(0.74	)		(0.68	)		(0.68	)		(0.66	)		(0.57	)
Redemption fees added to beneficial interestsD		-			-			-			-			-			-
Net asset value, end of period	$	8.86		$	8.65		$	9.62		$	8.96		$	8.35		$	9.68
Total returnE		6.75	%F		(2.31	)%		15.51	%		15.77	%		(7.36	)%		2.42	%F
Ratios and supplemental data:
Net assets, end of period	$	3,403,597		$	3,200,206		$	3,726,687		$	4,648,954		$	7,513,980		$	15,782,502
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.42	%G		1.53	%		1.48	%		1.78	%		1.52	%		1.88	%G
Expenses, net of reimbursements or recoupments		1.25	%G		1.71	%I		1.55	%		1.67	%H		1.55	%		1.55	%G
Net investment income, before expense reimbursements or recoupments		9.06	%G		8.49	%		8.65	%		9.85	%		6.89	%		5.82	%G
Net investment income, net of reimbursements or recoupments		9.24	%G		8.30	%		8.58	%		9.96	%		6.86	%		6.15	%G
Portfolio turnover rate		13	%F		21	%		22	%		69	%		68	%		23	%J

^A Commencement of operations.

^B On October 1, 2018, Aberdeen Asset Managers Limited began managing a portion of the assets of the American Beacon Frontier Markets Income Fund.

^C Tax return of capital is calculated based on outstanding shares at the time of distribution.

^D Amount represents less than $0.01 per share.

^E Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^F Not annualized.

^G Annualized.

^H Voluntary expense cap. See Note 2 of the Notes to the Financial Statements.

^I Includes non-operating expenses consisting of loan interest expenses. The expenses, net of reimbursements or recoupments ratio excluding non-operating expenses is 1.69%.

^J Portfolio turnover rate is for the period from February 25, 2014 through January 31, 2015 and is not annualized.

See accompanying notes

69

American Beacon Frontier Markets Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	C Class
	Six Months Ended July 31,			Year Ended January 31,												February 25, 2014A to January 31,
	2019			2019B			2018			2017			2016			2015
	(unaudited)
Net asset value, beginning of period	$	8.64		$	9.58		$	8.93		$	8.34		$	9.67		$	10.00
Income (loss) from investment operations:
Net investment income		0.35			0.68			0.65			0.83			0.56			0.47
Net gains (losses) on investments (both realized and unrealized)		0.17			(0.95	)		0.62			0.39			(1.30	)		(0.30	)
Total income (loss) from investment operations		0.52			(0.27	)		1.27			1.22			(0.74	)		0.17
Less distributions:
Dividends from net investment income		(0.34	)		(0.67	)		(0.62	)		(0.07	)		(0.42	)		(0.48	)
Distributions from net realized gains		-			-			-			-			-			(0.02	)
Tax return of capital		-			-			-			(0.56	)C		(0.17	)C		-
Total distributions		(0.34	)		(0.67	)		(0.62	)		(0.63	)		(0.59	)		(0.50	)
Redemption fees added to beneficial interestsD		-			-			-			-			-			-
Net asset value, end of period	$	8.82		$	8.64		$	9.58		$	8.93		$	8.34		$	9.67
Total returnE		6.14	%F		(2.74	)%		14.66	%		14.90	%		(8.06	)%		1.60	%F
Ratios and supplemental data:
Net assets, end of period	$	11,764,698		$	10,283,443		$	8,398,773		$	1,724,982		$	2,049,234		$	1,244,636
Ratios to average net assets:
Expenses, before reimbursements or recoupments		2.13	%G		2.28	%		2.29	%		2.55	%		2.31	%		3.01	%G
Expenses, net of reimbursements or recoupments		2.13	%G		2.33	%H		2.30	%		2.30	%		2.30	%		2.31	%G
Net investment income, before expense reimbursements or recoupments		8.38	%G		7.79	%		7.81	%		8.90	%		5.89	%		4.62	%G
Net investment income, net of reimbursements or recoupments		8.38	%G		7.75	%		7.81	%		9.14	%		5.90	%		5.33	%G
Portfolio turnover rate		13	%F		21	%		22	%		69	%		68	%		23	%I

^A  Commencement of operations.

^B  On October 1, 2018, Aberdeen Asset Managers Limited began managing a portion of the assets of the American Beacon Frontier Markets Income Fund.

^C  Tax return of capital is calculated based on outstanding shares at the time of distribution.

^D  Amount represents less than $0.01 per share.

^E  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^F  Not annualized.

^G  Annualized.

^H  Includes non-operating expenses consisting of loan interest expenses. The expenses, net of reimbursements or recoupments ratio excluding non-operating expenses is 2.30%.

^I  Portfolio turnover rate is for the period from February 25, 2014 through January 31, 2015 and is not annualized.

See accompanying notes

70

American Beacon GLG Total Return Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Institutional Class
	Six Months Ended July 31,			Year Ended January 31,						May 20, 2016A to January 31,
	2019			2019			2018			2017
	(unaudited)
Net asset value, beginning of period	$	10.16		$	10.50		$	10.69		$	10.00
Income (loss) from investment operations:
Net investment income		0.07			0.11	B		0.06	B		0.07
Net gains (losses) on investments (both realized and unrealized)		(0.12	)		(0.06	)		(0.12	)		0.73
Total income (loss) from investment operations		(0.05	)		0.05			(0.06	)		0.80
Less distributions:
Dividends from net investment income		-			(0.15	)		(0.11	)		(0.10	)
Distributions from net realized gains		-			(0.24	)		(0.02	)		(0.01	)
Tax return of capital		-			-			(0.00	)CD		-
Total distributions		-			(0.39	)		(0.13	)		(0.11	)
Net asset value, end of period	$	10.11		$	10.16		$	10.50		$	10.69
Total returnE		(0.49	)%F		0.47	%		(0.64	)%		7.95	%F
Ratios and supplemental data:
Net assets, end of period	$	321,692		$	323,306		$	321,683		$	7,560,278
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.12	%G		1.03	%		1.03	%		2.09	%G
Expenses, net of reimbursements or recoupments		1.09	%G		1.06	%		1.05	%		1.05	%G
Net investment income, before expense reimbursements or recoupments		1.39	%G		1.06	%		0.49	%		0.01	%G
Net investment income, net of reimbursements or recoupments		1.41	%G		1.04	%		0.46	%		1.05	%G
Portfolio turnover rate		11	%F		326	%		248	%		311	%H

^A  Commencement of operations.

^B  Per share amounts have been calculated using the average shares method.

^C  Tax return of capital is calculated based on outstanding shares at the time of distribution.

^D  Amount represents less than $0.01 per share.

^E  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^F  Not annualized.

^G  Annualized.

^H  Portfolio turnover rate is for the period from May 20, 2016 through January 31, 2017 and is not annualized.

See accompanying notes

71

American Beacon GLG Total Return Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Y Class
	Six Months Ended July 31,			Year Ended January 31,						May 20, 2016A to January 31,
	2019			2019			2018			2017
	(unaudited)
Net asset value, beginning of period	$	10.10		$	10.47		$	10.68		$	10.00
Income (loss) from investment operations:
Net investment income		0.07			0.08			0.09			0.07
Net gains (losses) on investments (both realized and unrealized)		(0.12	)		(0.06	)		(0.17	)		0.72
Total income (loss) from investment operations		(0.05	)		0.02			(0.08	)		0.79
Less distributions:
Dividends from net investment income		-			(0.15	)		(0.10	)		(0.10	)
Distributions from net realized gains		-			(0.24	)		(0.02	)		(0.01	)
Tax return of capital		-			-			(0.01	)B		-
Total distributions		-			(0.39	)		(0.13	)		(0.11	)
Redemption fees added to beneficial interests		-			-			-			-
Net asset value, end of period	$	10.05		$	10.10		$	10.47		$	10.68
Total returnC		(0.50	)%D		0.17	%		(0.78	)%		7.85	%D
Ratios and supplemental data:
Net assets, end of period	$	708,031		$	683,994		$	1,038,736		$	107,884
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.22	%E		1.05	%		1.18	%		5.31	%E
Expenses, net of reimbursements or recoupments		1.19	%E		1.15	%		1.15	%		1.15	%E
Net investment income (loss), before expense reimbursements or recoupments		1.29	%E		0.88	%		0.18	%		(3.21	)%E
Net investment income, net of reimbursements or recoupments		1.31	%E		0.78	%		0.21	%		0.95	%E
Portfolio turnover rate		11	%D		326	%		248	%		311	%F

^A  Commencement of operations.

^B  Tax return of capital is calculated based on shares outstanding at the time of distribution.

^C  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^D  Not annualized.

^E  Annualized.

^F  Portfolio turnover rate is for the period from May 20, 2016 through January 31, 2017 and is not annualized.

See accompanying notes

72

American Beacon GLG Total Return Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Investor Class
	Six Months Ended July 31,			Year Ended January 31,						May 20, 2016A to January 31,
	2019			2019			2018			2017
	(unaudited)
Net asset value, beginning of period	$	10.04		$	10.43		$	10.66		$	10.00
Income (loss) from investment operations:
Net investment income		0.05			0.05			0.02			0.05
Net gains (losses) on investments (both realized and unrealized)		(0.12	)		(0.05	)		(0.13	)		0.72
Total income (loss) from investment operations		(0.07	)		-			(0.11	)		0.77
Less distributions:
Dividends from net investment income		-			(0.15	)		(0.09	)		(0.10	)
Distributions from net realized gains		-			(0.24	)		(0.02	)		(0.01	)
Tax return of capital		-			-			(0.01	)B		-
Total distributions		-			(0.39	)		(0.12	)		(0.11	)
Net asset value, end of period	$	9.97		$	10.04		$	10.43		$	10.66
Total returnC		(0.70	)%D		(0.04	)%		(1.05	)%		7.65	%D
Ratios and supplemental data:
Net assets, end of period	$	138,885		$	138,852		$	150,889		$	128,790
Ratios to average net assets:
Expenses, before reimbursements		2.00	%E		1.80	%		2.09	%		5.14	%E
Expenses, net of reimbursements		1.47	%EG		1.43	%		1.43	%		1.43	%E
Net investment income (loss), before expense reimbursements		0.51	%E		0.21	%		(0.62	)%		(3.04	)%E
Net investment income, net of reimbursements		1.04	%E		0.57	%		0.03	%		0.67	%E
Portfolio turnover rate		11	%D		326	%		248	%		311	%F

^A  Commencement of operations.

^B  Tax return of capital is calculated based on shares outstanding at the time of distribution.

^C  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^D  Not annualized.

^E  Annualized.

^F  Portfolio turnover rate is for the period from May 20, 2016 through January 31, 2017 and is not annualized

^G  Includes non-operating expenses consisting of prime broker fees and dividends from securities sold short. The Expenses, net of reimbursements, excluding non-operating expenses is 1.43% for the period ended July 31, 2019.

See accompanying notes

73

American Beacon GLG Total Return Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	A Class
	Six Months Ended July 31,			Year Ended January 31,						May 20, 2016A to January 31,
	2019			2019			2018			2017
	(unaudited)
Net asset value, beginning of period	$	10.03		$	10.42		$	10.66		$	10.00
Income (loss) from investment operations:
Net investment income		0.05			0.07			0.00	B		0.05
Net gains (losses) on investments (both realized and unrealized)		(0.12	)		(0.07	)		(0.12	)		0.72
Total income (loss) from investment operations		(0.07	)		-			(0.12	)		0.77
Less distributions:
Dividends from net investment income		-			(0.15	)		(0.10	)		(0.10	)
Distributions from net realized gains		-			(0.24	)		(0.02	)		(0.01	)
Tax return of capital		-			-			(0.00	)BC		-
Total distributions		-			(0.39	)		(0.12	)		(0.11	)
Net asset value, end of period	$	9.96		$	10.03		$	10.42		$	10.66
Total returnD		(0.70	)%E		(0.04	)%		(1.15	)%		7.65	%E
Ratios and supplemental data:
Net assets, end of period	$	105,662		$	106,404		$	106,439		$	107,660
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.37	%F		1.31	%		1.42	%		5.62	%F
Expenses, net of reimbursements or recoupments		1.49	%F		1.46	%		1.45	%		1.45	%F
Net investment income (loss), before expense reimbursements or recoupments		1.14	%F		0.69	%		0.05	%		(3.51	)%F
Net investment income, net of reimbursements or recoupments		1.02	%F		0.55	%		0.02	%		0.65	%F
Portfolio turnover rate		11	%E		326	%		248	%		311	%G

^A  Commencement of operations.

^B  Amount represents less than $0.01 per share.

^C  Tax return of capital is calculated based on outstanding shares at the time of distribution.

^D  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^E  Not annualized.

^F  Annualized.

^G  Portfolio turnover rate is for the period from May 20, 2016 through January 31, 2017 and is not annualized.

See accompanying notes

74

American Beacon GLG Total Return Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	C Class
	Six Months Ended July 31,			Year Ended January 31,						May 20, 2016A to January 31,
	2019			2019			2018			2017
	(unaudited)
Net asset value, beginning of period	$	9.88		$	10.34		$	10.61		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		0.01			(0.01	)		(0.08	)		(0.01	)
Net gains (losses) on investments (both realized and unrealized)		(0.11	)		(0.07	)		(0.12	)		0.73
Total income (loss) from investment operations		(0.10	)		(0.08	)		(0.20	)		0.72
Less distributions:
Dividends from net investment income		-			(0.14	)		(0.04	)		(0.10	)
Distributions from net realized gains		-			(0.24	)		(0.02	)		(0.01	)
Tax return of capital		-			-			(0.01	)B		-
Total distributions		-			(0.38	)		(0.07	)		(0.11	)
Net asset value, end of period	$	9.78		$	9.88		$	10.34		$	10.61
Total returnC		(1.01	)%D		(0.79	)%		(1.95	)%		7.15	%D
Ratios and supplemental data:
Net assets, end of period	$	103,167		$	104,277		$	105,096		$	107,101
Ratios to average net assets:
Expenses, before reimbursements or recoupments		2.12	%E		2.06	%		2.17	%		6.37	%E
Expenses, net of reimbursements or recoupments		2.24	%E		2.21	%		2.20	%		2.20	%E
Net investment income (loss), before expense reimbursements or recoupments		0.39	%E		(0.06	)%		(0.70	)%		(4.27	)%E
Net investment income (loss), net of reimbursements or recoupments		0.26	%E		(0.20	)%		(0.73	)%		(0.10	)%E
Portfolio turnover rate		11	%D		326	%		248	%		311	%F

^A  Commencement of operations.

^B  Tax return of capital is calculated based on outstanding shares at the time of distribution.

^C  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^D  Not annualized.

^E  Annualized.

^F  Portfolio turnover rate is for the period from May 20, 2016 through January 31, 2017 and is not annualized.

See accompanying notes

75

American Beacon GLG Total Return Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Ultra
	Six Months Ended July 31,			Year Ended January 31,						May 20, 2016A to January 31,
	2019			2019			2018			2017
	(unaudited)
Net asset value, beginning of period	$	10.16		$	10.50		$	10.69		$	10.00
Income from investment operations:
Net investment income		0.07			0.13			0.11			0.07
Net gains (losses) on investments (both realized and unrealized)		(0.12	)		(0.08	)		(0.17	)		0.73
Total income (loss) from investment operations		(0.05	)		0.05			(0.06	)		0.80
Less distributions:
Dividends from net investment income		-			(0.15	)		(0.10	)		(0.10	)
Distributions from net realized gains		-			(0.24	)		(0.02	)		(0.01	)
Tax return of capital		-			-			(0.01	)B		-
Total distributions		-			(0.39	)		(0.13	)		(0.11	)
Net asset value, end of period	$	10.11		$	10.16		$	10.50		$	10.69
Total returnC		(0.49	)%D		0.47	%		(0.57	)%		7.95	%D
Ratios and supplemental data:
Net assets, end of period	$	215,468,985		$	468,097,908		$	743,861,439		$	67,330,248
Ratios to average net assets:
Expenses, before reimbursements		1.10	%E		1.05	%		1.07	%		2.09	%E
Expenses, net of reimbursements		0.99	%EG		0.95	%		0.95	%		0.95	%E
Net investment income, before expense reimbursements		1.41	%E		0.92	%		0.34	%		0.76	%E
Net investment income, net of reimbursements		1.53	%E		1.02	%		0.46	%		1.91	%E
Portfolio turnover rate		11	%D		326	%		248	%		311	%F

^A  Commencement of operations.

^B  Tax return of capital is calculated based on outstanding shares at the time of distribution.

^C  Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

^D  Not annualized.

^E  Annualized.

^F  Portfolio turnover rate is for the period from May 20, 2016 through January 31, 2017 and is not annualized.

^G  Includes non-operating expenses consisting of prime broker fees and dividends from securities sold short. The Expenses, net of reimbursements, excluding non-operating expenses is 0.95% for the period ended July 31, 2019.

See accompanying notes

76

Disclosure Regarding Approval of the Management and Investment Advisory Agreements

July 31, 2019 (Unaudited)

Renewal and Approval of Management Agreement and Investment Advisory Agreements

At in-person meetings held on May 9, 2019 and June 4-5, 2019 (collectively, the “Meetings”), the Board of Trustees (“Board” or “Trustees”) considered and then, at its June 5, 2019 meeting, approved the renewal of:

(1) the Management Agreement between American Beacon Advisors, Inc. (“Manager”) and the American Beacon Funds (“Trust”), on behalf of the American Beacon GLG Total Return Fund (“GLG Fund”) and the American Beacon Frontier Markets Income Fund (formerly known as the American Beacon Global Evolution Frontier Markets Income Fund) (“Frontier Fund”) (each, a “Fund” and collectively, the “Funds”);

(2) the Investment Advisory Agreement among the Manager, GLG LLC (“GLG”), and the Trust, on behalf of the GLG Fund; and

(3) the Investment Advisory Agreements among the Manager, the Trust, on behalf of the Frontier Fund, and each of Global Evolution USA, LLC (“Global Evolution”) and Aberdeen Asset Managers Limited (“Aberdeen”).

GLG, Global Evolution and Aberdeen are hereinafter each referred to as a “subadvisor” and collectively as the “subadvisors.” The Management Agreement and the Investment Advisory Agreements are referred to herein individually as an “Agreement” and collectively as the “Agreements.” In preparation for its consideration of the renewal of the Agreements, the Board undertook steps to gather and consider information furnished by the Manager, the subadvisors, Broadridge, Inc. (“Broadridge”) and Morningstar, Inc. (“Morningstar”). The Board, with the assistance of independent legal counsel, requested and received certain relevant information from the Manager and each subadvisor.

In advance of the Meetings, the Board’s Investment Committee and/or the Manager coordinated the production of information from Broadridge and Morningstar regarding the performance, fees and expenses of the Funds as well as information from the Manager and the subadvisors. At the Meetings, the Board considered the information provided in connection with the renewal process, as well as information furnished to the Board throughout the year at regular meetings of the Board and its committees. In connection with the Board’s consideration of the Agreements, the Board received and evaluated such information as they deemed necessary. This information is described below in the section summarizing the factors the Board considered in connection with its renewal and approval of the Agreements, as well as the section describing additional Board considerations with respect to each Fund.

The Board noted that the Manager provides management and administrative services to the Funds pursuant to the Management Agreement. The Board considered that many mutual funds have separate contracts governing each type of service and observed that, with respect to such mutual funds, the actual management fee rates provided by Broadridge for peer group funds reflect the combined advisory and administrative expenses, reduced by any fee waivers and/or reimbursements.

A firm may not have been able to, or opted not to, provide information in response to certain information requests, in which case the Board conducted its evaluation of the firm based on information that was provided. In such cases, the Board determined that the omission of any such information was not material to its considerations. For each Fund, the class of shares used for comparative performance purposes was the share class with the lowest expenses available for purchase by the general public, which was the Institutional Class. The Board also considered that the use of Institutional Class performance generally facilitates a meaningful comparison for expense and performance purposes.

Provided below is an overview of certain factors the Board considered in connection with its renewal and approval of the Agreements. The Board did not identify any particular information that was most relevant to its consideration to renew or approve each Agreement, and each Trustee may have afforded different weight to the various factors. Legal counsel to the independent Trustees provided the Board with a memorandum regarding its

77

Disclosure Regarding Approval of the Management and Investment Advisory Agreements

July 31, 2019 (Unaudited)

responsibilities pertaining to the renewal and approval of investment advisory contracts, such as the Agreements. The memorandum explained the regulatory requirements surrounding the Board’s process for evaluating investment advisors and the terms of investment advisory contracts. Based on its evaluation, the Board unanimously concluded that the terms of each Agreement were reasonable and fair and that the renewal and approval of each Agreement was in the best interests of the Funds and their shareholders.

Considerations With Respect to the Renewal of the Management Agreement and the Investment Advisory Agreements

In determining whether to renew the Agreements, the Board considered each Fund’s investment management and subadvisory relationships separately. In each instance, the Board considered, among other things, the following factors: (1) the nature, extent and quality of the services provided; (2) the investment performance of the Funds; (3) the costs incurred by the Manager in rendering services to the Funds and its resulting profits or losses; (4) comparisons of services and fee rates with contracts entered into by the Manager or a subadvisor or their affiliates with other clients (such as pension funds and other institutional clients); (5) the extent to which economies of scale, if any, have been taken into account in setting each fee rate schedule; (6) whether fee rate levels reflect economies of scale, if any, for the benefit of Fund investors; and (7) any other benefits derived or anticipated to be derived by the Manager or a subadvisor from their relationships with the Funds.

Nature, Extent and Quality of Services. With respect to the renewal of the Management Agreement, the Board considered, among other factors: the GLG Fund’s performance since its inception in 2016 and the Frontier Fund’s performance since its inception in 2014; the length of service of key investment personnel at the Manager; the cost structure of the Funds; the Manager’s culture of compliance and support that reduce risks to the Funds; the Manager’s quality of services; the Manager’s active role in monitoring and, as appropriate, recommending additional or replacement subadvisors; and the Manager’s efforts to retain key employees and maintain staffing levels.

With respect to the renewal of each Investment Advisory Agreement, the Board considered the level of staffing and the size of the subadvisor. The Board also considered the adequacy of the resources committed to the Funds by each subadvisor, and whether those resources were commensurate with the needs of the Funds and are sufficient to sustain appropriate levels of performance and compliance needs. In this regard, the Board considered the financial stability of each subadvisor. The Board also considered each subadvisor’s representations regarding its compliance program and code of ethics. Based on the foregoing information, the Board concluded that the nature, extent and quality of the management and advisory services provided by the Manager and each subadvisor were appropriate for each Fund.

Investment Performance. The Board evaluated the comparative information provided by Broadridge and the Manager regarding the performance of each Fund relative to its Broadridge performance universe, Morningstar Category, and benchmark index, as well as the Fund’s Morningstar rating. The Board considered the information provided by Broadridge regarding Broadridge’s independent methodology for selecting each Fund’s Broadridge performance universe. The Board also considered that the performance universes selected by Broadridge may not provide appropriate comparisons for a Fund. In addition, the Board considered the performance reports and discussions with management at Board and Committee meetings throughout the year. The Board also evaluated the comparative information provided by each subadvisor regarding the performance of the relevant Fund relative to the performance of the Fund’s benchmark index and appropriate similar accounts managed by the subadvisor. In addition, the Board considered the Manager’s recommendation to continue to retain each subadvisor. A discussion regarding the Board’s considerations with respect to each Fund’s performance appears below under “Additional Considerations and Conclusions with Respect to Each Fund.”

Costs of the Services Provided to the Funds and the Profits Realized by the Manager from its Relationship with the Funds. In analyzing the cost of services and profitability of the Manager, the Board considered the revenues earned and the expenses incurred by the Manager, before and after the payment of distribution-related

78

Disclosure Regarding Approval of the Management and Investment Advisory Agreements

July 31, 2019 (Unaudited)

expenses by the Manager. The profits or losses were noted at both an aggregate level for all funds within the group of mutual funds sponsored by the Manager (the “Fund Complex”) and at an individual Fund level, with the Manager earning a profit with respect to each Fund before and after the payment of distribution-related expenses by the Manager. The Board also considered comparative information provided by the Manager regarding the Manager’s overall profitability with respect to the Fund Complex relative to the overall profitability of other firms in the mutual fund industry, as disclosed in publicly available sources. Although the Board noted that, in certain cases, the fee rates paid by other clients of the Manager are lower than the fee rates paid by the Funds, the Manager represented that, among other matters, the difference is attributable to the fact that the Manager does not perform administrative services for non-investment company clients and reflects the greater level of responsibility and regulatory requirements associated with managing the Funds.

The Board also noted that the Manager proposed to continue the expense waivers and reimbursements for the Funds that were in place during the last fiscal year. The Board further considered that, with respect to each Fund, the Management Agreement provides for the Manager to receive a management fee comprised of an annualized fee that is retained by the Manager. The Board also noted that certain share classes of the Funds maintain higher expense ratios in order to compensate third-party financial intermediaries.

In analyzing the fee rates charged by each subadvisor in connection with its investment advisory services to a Fund, the Board considered representations made by GLG and Global Evolution that the fee rate negotiated by the Manager is favorable relative to the fee rates that the subadvisor charges for any comparable client accounts, and considered representations made by Aberdeen that it does not manage any comparable client accounts. The Board did not request profitability data from the subadvisors because the Board did not view this data as imperative to its deliberations given the arm’s-length nature of the relationship between the Manager and the subadvisors with respect to the negotiation of subadvisory fee rates. In addition, the Board noted that subadvisors may not account for their profits on an account-by-account basis and that different firms likely employ different methodologies in connection with these calculations.

Based on the foregoing information, the Board concluded that the profitability levels of the Manager were reasonable in light of the services performed by the Manager. A discussion regarding the Board’s considerations with respect to each Fund’s fee rates is set forth below under “Additional Considerations and Conclusions with Respect to Each Fund.”

Economies of Scale. In considering the reasonableness of the management and investment advisory fees rates, the Board considered whether economies of scale will be realized as each Fund grows and whether fee rate levels reflect these economies of scale for the benefit of Fund shareholders. In this regard, the Board considered that, with respect to GLG, the Manager has negotiated breakpoints in the subadvisory fee rate for the GLG Fund. The Board also considered Global Evolution’s representation that, due to the nature of the Frontier Fund’s strategy, Global Evolution is unlikely to realize economies of scale. In addition, the Board considered Aberdeen’s representation that it believes that its fee is competitive and reflects economies of scale for the benefit of the Frontier Fund’s shareholders.

In addition, the Board noted the Manager’s representation that the Management Agreement contains fee schedule breakpoints at higher asset levels with respect to each Fund. Based on the foregoing information, the Board concluded that the Manager and subadvisor fee rate schedules for each Fund provide for a reasonable sharing of benefits from any economies of scale with each Fund.

Benefits Derived from the Relationship with the Funds. The Board considered the “fall-out” or ancillary benefits that accrue to the Manager and/or the subadvisors as a result of the advisory relationships with the Funds, including greater exposure in the marketplace with respect to the Manager’s or the subadvisors’ investment process and expanding the level of assets under management by the Manager and the subadvisors. Based on the foregoing information, the Board concluded that the potential benefits accruing to the Manager and the subadvisors by virtue of their relationships with the Funds appear to be fair and reasonable.

79

Disclosure Regarding Approval of the Management and Investment Advisory Agreements

July 31, 2019 (Unaudited)

Additional Considerations and Conclusions with Respect to Each Fund

The performance comparisons below were made in comparison to each Fund’s Broadridge performance universe and Morningstar Category. With respect to the Broadridge performance universe, the 1^st Quintile represents the top 20 percent of the universe based on performance and the 5^th Quintile representing the bottom 20 percent of the universe based on performance. References below to each Fund’s Broadridge performance universe are to the universe of mutual funds with a comparable investment classification/objective included in the analysis provided by Broadridge.

The expense comparisons below were made in comparison to each Fund’s Broadridge expense universe and Broadridge expense group, with the 1st Quintile representing the lowest 20 percent of the universe or group based on lowest total expense and the 5th Quintile representing the highest 20 percent of the universe or group based on highest total expense. References below to each Fund’s expense group and expense universe are to the respective group or universe of comparable mutual funds included in the analysis by Broadridge. A Broadridge expense group consists of the Fund and a representative sample of funds with similar operating structures and asset sizes, as selected by Broadridge. A Broadridge expense universe includes all funds in the investment classification/objective with a similar operating structure as the share class of the Fund included in the Broadridge comparative information and provides a broader view of expenses across the Fund’s investment classification/objective. The Board also considered each Fund’s Morningstar fee level category. In reviewing expenses, the Board considered the positive impact of fee waivers where applicable and the Manager’s agreement to continue the fee waivers. In addition, information regarding the subadvisors’ use of soft dollars was requested from the Manager and was considered by the Board.

Additional Considerations and Conclusions with Respect to the American Beacon GLG Total Return Fund

In considering the renewal of the Management Agreement and the Investment Advisory Agreement with GLG for the GLG Fund, the Board considered the following additional factors:

Broadridge Total Expenses Excluding 12b-1 Fees and Morningstar Fee Level Ranking

Compared to Broadridge Expense Group	3rd Quintile
Compared to Broadridge Expense Universe	3rd Quintile
Morningstar Fee Level Ranking – Institutional Class	High Expense Ratio

Broadridge and Morningstar Performance Analysis (one-year period ended December 31, 2018)

Compared to Broadridge Performance Universe	1st Quintile
Compared to Morningstar Category	1st Quintile

The Board also considered: (1) information provided by GLG regarding fee rates charged for managing assets in the same or a similar strategy as GLG manages the GLG Fund; (2) the Manager’s representation regarding the challenges associated with identifying a peer group for evaluating the GLG Fund’s expenses and performance because none of the funds in the GLG Fund’s Broadridge expense group, expense universe, performance universe or Morningstar category pursue an investment strategy comparable to the GLG Fund’s strategy; and (3) the Manager’s recommendation to continue to retain GLG based upon, among other factors, the relatively brief period that the GLG Fund has been in operation.

Based on these and other considerations, the Board: (1) concluded that the fees paid to the Manager and GLG under the Management and Investment Advisory Agreements are fair and reasonable; and (2) determined that the GLG Fund and its shareholders would benefit from the Manager’s and GLG’s continued management of the GLG Fund.

80

Disclosure Regarding Approval of the Management and Investment Advisory Agreements

July 31, 2019 (Unaudited)

Additional Considerations and Conclusions with Respect to the American Beacon Frontier Markets Income Fund

In considering the renewal of the Management Agreement for the Frontier Fund, the Board considered the following additional factors:

Broadridge Total Expenses Excluding 12b-1 Fees and Morningstar Fee Level Ranking

Compared to Broadridge Expense Group	5th Quintile
Compared to Broadridge Expense Universe	5th Quintile
Morningstar Fee Level Ranking – Institutional Class	High Expense Ratio

Broadridge and Morningstar Performance Analysis (three-year period ended December 31, 2018)

Compared to Broadridge Performance Universe	1st Quintile
Compared to Morningstar Category	1st Quintile

In considering the renewal of the Investment Advisory Agreements with Global Evolution and Aberdeen, the Board considered that the diversification of investment strategies facilitated by the Frontier Fund’s multi-manager structure permits the Frontier Fund to mitigate the risks associated with a single subadvisor. Additionally, the Board considered that Aberdeen was added as a subadvisor in 2018 to ensure further capacity for the Frontier Fund. The Board also considered the following additional factors:

Subadvisor Performance (compared to Broadridge Performance Universe for period indicated ended December 31, 2018)

Global Evolution	3 Years	1st Quintile
Aberdeen*	Not Available
*Does not yet have a 1-, 3- or 5-year performance record.

The Board also considered: (1) Aberdeen’s representation that it does not manage other accounts with comparable investment objectives and policies as those of the Frontier Fund; (2) information provided by Global Evolution regarding the fee rate charged for managing an account in the same or a similar strategy as Global Evolution manages its allocation of the Frontier Fund; (3) the Manager’s representation regarding the challenges associated with identifying a peer group for evaluating the Frontier Fund’s expenses and performance because none of the funds in the Frontier Fund’s Broadridge expense group, expense universe or performance universe or Morningstar category pursue an investment strategy comparable to the Frontier Fund’s strategy; (4) the Frontier Fund employs a limited-capacity strategy as Global Evolution and Aberdeen invest principally in sovereign issuers located in frontier markets, which are a subgroup of emerging market countries; (5) the Manager’s explanation that the Frontier Fund’s expense profile is attributable to the higher expenses associated with investments in frontier market countries than emerging market countries, which the funds in the Frontier Fund’s Broadridge expense group, expense universe and Morningstar category invest in; (6) the relatively brief period that Aberdeen has been managing assets of the Frontier Fund; and (7) the Manager’s recommendation to continue to retain Global Evolution and Aberdeen.

Based on these and other considerations, the Board: (1) concluded that the fees paid to the Manager, Global Evolution and Aberdeen under the Management and Investment Advisory Agreements are fair and reasonable; and (2) determined that the Frontier Fund and its shareholders would benefit from the Manager’s, Global Evolution’s and Aberdeen’s continued management of the Frontier Fund.

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Delivery of Documents

eDelivery is NOW AVAILABLE - Stop traditional mail delivery and receive your

shareholder reports and summary prospectus on-line. Sign up at

www.americanbeaconfunds.com

If you invest in the Fund through a financial institution, you may be able to receive the Fund’s regulatory mailings, such as the Prospectus, Annual Report and Semi-Annual Report, by e-mail. If you are interested in this option, please go to www.icsdelivery.com and search for your financial institution’s name or contact your financial institution directly.

To obtain more information about the Fund:

By E-mail:	On the Internet:
american_beacon.funds@ambeacon.com	Visit our website at www.americanbeaconfunds.com
By Telephone: Call (800) 658-5811	By Mail: American Beacon Funds P.O. Box 219643 Kansas City, MO 64121-9643
Availability of Quarterly Portfolio Schedules	Availability of Proxy Voting Policy and Records
In addition to the Schedule of Investments provided in each semi-annual and annual report, the Fund files a complete schedule of its portfolio holdings with the Securities and Exchange Commission (“SEC”) on Form N-Q as of the first and third fiscal quarters. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-2736. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling (800)-SEC-0330. A complete schedule of each Fund’s portfolio holdings is also available at www.americanbeaconfunds.com approximately twenty days after the end of each month.	A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Fund’s Statement of Additional Information, is available free of charge on the Fund’s website www.americanbeaconfunds.com and by calling 1-800-967-9009 or by accessing the SEC’s website at www.sec.gov. The Fund’s proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Fund’s Forms N-PX are available on the SEC’s website at www.sec.gov. The Fund’s proxy voting record may also be obtained by calling 1-800-967-9009.

Fund Service Providers:

CUSTODIAN State Street Bank and Trust Company Boston, Massachusetts TRANSFER AGENT DST Asset Manager Solutions, Inc. Quincy, Massachusetts INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP Boston, Massachusetts DISTRIBUTOR Resolute Investment Distributors, Inc. Irving, Texas

This report is prepared for shareholders of the American Beacon Funds and may be distributed to others only if preceded or accompanied by a current Prospectus or Summary Prospectus.

American Beacon Funds, American Beacon Frontier Markets Income Fund and American Beacon GLG Total Return Fund are service marks of American Beacon Advisors, Inc.

SAR 7/19

ITEM 2. CODE OF ETHICS.

The Trust adopted a code of ethics that applies to its principal executive and financial officers (the “Code”). The Trust amended its code August 19, 2019 to disclose the addition of the American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Sound Point Alternative Lending Fund and to disclose a change to limit the value of gifts received by the principal officer or financial officer to $100. The Trust did not grant any waivers to the provisions of the Code during the period covered by the shareholder reports presented in Item 1. The Code is filed herewith as Exhibit 99.CODE ETH.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not Applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not Applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not Applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

The schedules of investments for each series of the Trust are included in the shareholder reports presented in Item 1.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not Applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not Applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not Applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

The Trust has made no material changes to the procedures by which shareholders may recommend nominees to the Trust’s Board of Trustees since the Trust last disclosed such procedures in Schedule 14A.

ITEM 11. CONTROLS AND PROCEDURES.

(a) Based upon an evaluation within 90 days of the filing date of this report, the principal executive and financial officers concluded that the disclosure controls and procedures of the Trust are effective.

(b) There were no changes in the Trust’s internal control over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Not Applicable.

(a)(2) A separate certification for each principal executive officer and principal financial officer of the Trust as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) is attached hereto as EX-99.CERT.

(a)(3) Not Applicable.

(b)    The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940 are attached hereto as EX-99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant): American Beacon Funds

By /s/ Gene L. Needles, Jr.

Gene L. Needles, Jr.

President

American Beacon Funds

Date: October 4, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By /s/ Gene L. Needles, Jr.

Gene L. Needles, Jr.

President

American Beacon Funds

Date: October 4, 2019

By /s/ Melinda G. Heika

Melinda G. Heika

Treasurer

American Beacon Funds

Date: October 4, 2019