N-CSR

N-CSR 1 d341166dncsr.htm N-CSR N-CSR

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)

JEFFREY RINGDAHL, 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: October 31, 2022

Date of reporting period: October 31, 2022

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.

LOGO

About American Beacon Advisors

Since 1986, American Beacon Advisors, Inc. 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.

BALANCED FUND

The use of fixed-income securities entails interest rate and credit risks. Interest rate risk is the risk that debt securities will decrease in value with increases in market interest rates. Credit risk is the risk that the issuer of a bond will fail to make timely payment of interest or principal; and the decline in an issuer’s credit rating can cause the price of its bonds to go down. Investing in foreign securities may involve heightened risk due to currency fluctuations and economic and political risks. Investing in value stocks may limit downside risk over time; however, the Fund may produce more modest gains than riskier stock funds as a trade-off for this potentially lower risk. 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

October 31, 2022

Contents


President’s Message			1

Market and Performance Overviews			2

Expense Examples			7

Report of Independent Registered Public Accounting Firm			9

Schedules of Investments:
American Beacon Balanced Fund			10

Financial Statements			26

Notes to Financial Statements			29

Financial Highlights:
American Beacon Balanced Fund			55

Federal Tax Information			61

Disclosure Regarding Approval of the Management and Investment Advisory Agreements			62

Disclosure Regarding Liquidity Risk Management Program			67

Trustees and Officers of the American Beacon Funds			68

Privacy Policy			75



Additional Fund Information			Back Cover

President’s Message

Dear Shareholders,

Warren E. Buffett, the “Oracle of Omaha” and billionaire chairman and CEO of Berkshire Hathaway, once said, “Predicting rain doesn’t count. Building arks does.”

Mr. Buffet’s plain-spoken words make a great deal of common sense. Figuring out when the next dangerous storm may occur could prove to be an effort in futility if we haven’t also devised a plan for preserving our physical well-being when the thunder rolls and the lightning strikes. The time to build a shelter is before the storm clouds appear on the horizon. The same can also be said about our investment portfolios. Careful planning and fine-tuning can be especially important as we seek to preserve and grow our investment portfolios during periods of economic uncertainty - particularly as we consider the effects of higher inflation, slower economic growth and geopolitical

concerns such as Russia’s war with Ukraine.

None of us has the ability to foresee the future – not even the Oracle of Omaha. To help your investment portfolio weather storms over the long term, we encourage you to work with financial professionals to develop your personal savings plan, conduct annual plan reviews, and make thoughtful, purposeful plan adjustments to better manage your evolving financial needs and goals. By investing in different investment styles and asset classes, you may be able to help mitigate financial risks across your portfolio. By allocating your portfolio according to your risk-tolerance level, you may be better positioned to withstand short-term crises. Through careful planning, you will be better positioned to achieve enduring financial success.

Since 1986, American Beacon has endeavored to provide investors with a disciplined approach to realizing long-term financial goals. As a manager of managers, we strive to provide investment products that may enable investors to participate during market upswings while potentially insulating against market downswings. The investment teams behind our mutual funds seek to produce consistent, long-term results rather than focus only on short-term movements in the markets. In managing our investment products, we emphasize identifying opportunities that offer the potential for long-term financial rewards.

Thank you for entrusting your financial success with American Beacon. For additional information about our investment products or to access your account information, please visit our website at www.americanbeaconfunds.com.

Best Regards,

LOGO

Jeffrey K. Ringdahl

President

American Beacon Funds

Domestic Bond and Domestic Equity Market Overviews

October 31, 2022 (Unaudited)

Domestic Bond Market Overview

For the 12 months ended October 31, 2022, the investment-grade bond market posted a total return of -15.68%, as represented by the Bloomberg US Aggregate Bond Index (the “Index”). The performance reflects a combination of rising interest rates and negative excess returns (or returns relative to similar-duration U.S. Treasuries) from the spread sectors. This qualifies as the worst annual return in the 42-year history of the modern-day bond market. Agency mortgages reported the lowest excess return at -3.5%, followed by the credit sector at -3.0%. Agency bonds and asset-backed securities followed suit at -1.1% and -0.8%, respectively. In total, spread widening resulted in an excess return of -1.9% for the Index during the period. As a result, a majority of the negative performance was due to rising interest rates.

The federal funds rate rose by 3% during the period to 3.25%, and the market expected additional rate hikes over the next several months. The Treasury yield curve began the period under 2%, and yields rose to more than 4% across the entire curve. Additionally, the Federal Reserve (the “Fed”) began its quantitative tightening program, which involved shrinking its balance sheet by $95 billion per month ($60 billion from Treasuries and $35 billion from mortgages) and adding further upward pressure on interest rates.

Twin tailwinds of highly stimulative fiscal and monetary policies followed by a dissipation of the COVID-19 pandemic pushed economic growth and inflation to above-trend levels. Real gross domestic product averaged 3.25% growth year-over-year during the period, and the Consumer Price Index averaged more than 8% – well above the Fed’s target of 2%. As a result, in less than one year, the Fed undertook the largest episode of monetary policy tightening since 2006. As a result of the aggressive tightening, effects were already being felt by period end. The Index of Leading Economic Indicators was negative in six of the past seven months, existing-home sales fell 24% year-over-year according to the National Association of REALTORS^®,and the NAHB/Wells Fargo Housing Market Index declined to a very weak reading of 38. Additionally, money supply growth slowed to 2.6% growth year-over-year, as compared to 12.5% at the beginning of the period. A growth rate below 6% has typically been associated with a weak economy and falling inflation. Lastly, fiscal policy quickly changed from historically stimulative to decidedly contractionary as Congress began to struggle with gridlock.

However, by period end, investors were beginning to anticipate that much of the heavy lifting from the Fed was nearing an end. The final stage will be for the Fed to pause on further rate increases and assess the cumulative effects on the economy and inflation thus far.

Domestic Bond and Domestic Equity Market Overviews

October 31, 2022 (Unaudited)

Domestic Equity Market Overview

U.S. equities posted negative returns for the 12-month period ended October 31, 2022. The broader market, as measured by the Russell 3000^® Index, posted a 16.52% loss. Smaller companies led the drawdown with the Russell 2000^® Index falling 18.54%. Mid- and large-cap companies followed with losses of 17.17% and 16.38% for the Russell Midcap^® and Russell 1000^® indexes, respectively. On a relative basis, Value significantly outperformed Growth, with the Russell 3000^® Value Index down 7.25% and the Russell 3000^® Growth Index down 24.67%. The overall drawdown occurred in fits and starts due to high volatility around geopolitical risks, persistently higher-than-desired inflation, tighter monetary policy from the Federal Reserve (“Fed”) and recession worries.

The period started on a volatile note in November and December of 2021 following news of a new COVID-19 omicron variant, rising inflation and more hawkish comments from the Fed. Russia’s invasion of Ukraine in early 2022 further exacerbated supply chain issues, inflation and overall global uncertainty. Persistently higher-than-expected inflation and a clear shift from the Fed with interest rate increases drove U.S. equities lower through the first and second quarters of 2022. The market had a relief rally at the beginning of the third quarter of 2022 based on some improvement in broader inflation data and hopes that the Fed would pivot sooner rather than later. However, stocks reversed course downward as the Fed committed to continuing to raise rates. October 2022 saw a rebound on the back of solid GDP growth and hopes that the Fed was nearing their terminal rate.

With regard to monetary policy, a strong labor market combined with high inflation resulted in the Fed’s shift toward tighter monetary policy earlier in the year. The Fed began to raise rates in March 2022 with a 25 basis-point (0.25%) increase, followed by a 50 basis-point (0.50%) increase in May, and four consecutive increases of 75 basis points (0.75%) in June, July, September and November. Following the latest increase, the target for the federal funds rate is now 3.75% to 4.0%. Separately, the Fed began reducing the size of its balance sheet in June via quantitative tightening, which is projected to continue and may add upward pressure to longer-term interest rates. At period end, the consensus view was another 50 basis-point (0.50%) increase in December with a terminal rate approximating 5%.

The yield curve remained inverted as longer-term U.S. Treasuries pointed to expectations of either weak economic growth, lower inflation or a Fed pivot; shorter-term rates would indicate the Fed may continue to struggle to curb inflation and balance the tight labor market. The concern is that an inverted yield curve is often viewed as a precursor to a recession. Therefore, investors will likely be monitoring future economic data and the Fed’s policy responses while hoping for resiliency in the economy.

American Beacon Balanced Fund^SM

Performance Overview

October 31, 2022 (Unaudited)

The Investor Class of the American Beacon Balanced Fund (the “Fund”) returned -9.40% for the twelve months ended October 31, 2022, outperforming the Balanced Composite Index (40% Bloomberg US Aggregate Bond Index/60% Russell 1000 Value Index) return of -10.24% for the same period.

Comparison of Changes in Value of a $10,000 Investment for the period 10/31/2012 through 10/31/2022

LOGO

Total Returns for the Period ended October 31, 2022



	Ticker	1 Year			3 Years			5 Years			10 Years			Value of $10,000 10/31/2012- 10/31/2022

R5 Class (1,6)	AADBX		(9.20	)%		5.21	%		5.43	%		7.50	%		$	20,601

Y Class (1,6)	ACBYX		(9.25	)%		5.14	%		5.36	%		7.44	%		$	20,489

Investor Class (1,6)	AABPX		(9.40	)%		4.91	%		5.12	%		7.16	%		$	19,974

Advisor Class (1,6)	ABLSX		(9.62	)%		4.69	%		4.93	%		6.98	%		$	19,635

A Class without sales charge (1,2,6)	ABFAX		(9.49	)%		4.86	%		5.13	%		7.11	%		$	19,872

A Class with sales Charge (1,2,6)	ABFAX		(14.67	)%		2.82	%		3.89	%		6.48	%		$	18,733

C Class without sales charge (1,3,6)	ABCCX		(10.11	)%		4.12	%		4.36	%		6.47	%		$	18,726

C Class with sales charge (1,3,6)	ABCCX		(11.11	)%		4.12	%		4.36	%		6.47	%		$	18,726



Balanced Composite Index (40% Bloomberg US Aggregate Bond Index/60% Russell 1000 Value Index) (4)			(10.24	)%		3.25	%		4.46	%		6.67	%		$	19,065

Russell 1000^® Value Index (5)			(7.00	)%		7.31	%		7.21	%		10.30	%		$	26,647

Bloomberg US Aggregate Bond Index (5)			(15.68	)%		(3.77	)%		(0.54	)%		0.74	%		$	10,764

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 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.

American Beacon Balanced Fund^SM

Performance Overview

October 31, 2022 (Unaudited)

2.	A portion of the fees charged to the A Class of the Fund was waived in 2018. Performance prior to waiving fees was lower than the actual returns shown for the five-year and ten-year periods. A Class has a maximum sales charge of 5.75%.

A portion of the fees charged to the C Class of the Fund was waived in 2018. Performance prior to waiving fees was lower than the actual returns shown for the five-year and ten-year periods. The maximum contingent deferred sales charge for C Class is 1% for shares redeemed within one year of the date of purchase.

4.	To reflect the Fund’s allocation of its assets between investment-grade fixed-income securities and equity securities, the returns of the Russell 1000 Value Index and the Bloomberg US Aggregate Bond Index have been combined in a 60% / 40% proportion, respectively.

The Russell 1000^® Value Index is an unmanaged index of those stocks in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values. Russell 1000 Value Index and Bloomberg US Index are registered trademarks of Frank Russell Company. American Beacon Funds is not promoted, sponsored or endorsed by, nor in any way affiliated with the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies. LSE Group is not responsible for and has not reviewed the American Beacon Balanced Fund nor any associated literature or publications and LSE Group makes no representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise. All rights in the Russell 1000 Value Index (the “Index”) vest in the relevant LSE Group company which owns the Index. Russell 1000^® is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license. The Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Fund. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the Fund or the suitability of the Index for the purpose to which it is being put by the Manager. The Bloomberg US Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. BLOOMBERG^® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”). Bloomberg or Bloomberg’s licensors, own all proprietary rights in the Bloomberg Indices. Bloomberg does not approve or endorse this material, or guarantee the accuracy or completeness of any information herein, or make any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, shall not have any liability or responsibility for injury or damages arising in connection therewith.

The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the R5, Y, Investor, Advisor, A, and C Class shares were 0.70%, 0.77%, 0.99%, 1.16%, 1.02%, and 1.75%, 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.

As of October 31, 2022, the Fund’s asset allocation was 60% in equities (including equitized cash) and 40% in fixed-income securities.

The equity portion of the Fund (excluding equitized cash) returned -4.57% for the period, outperforming the Russell 1000 Value Index (the “Index”) return of -7.00%. The Fund outperformed the Index as both stock selection and sector allocation contributed to outperformance relative to the Index.

Stock selection in the Health Care and Real Estate sectors contributed most of the relative outperformance during the twelve-month period. In the Health Care sector, Elevance Health, Inc. (up 27.3%) and CVS Health Corp. (up 9.4%) performed well. In the Real Estate sector, the Fund’s position in Vici Properties, Inc. (up 7.3%) and MGM Growth Properties LLC Class A (up 8.4%) also contributed. Conversely, positions in Stanley Black & Decker, Inc. (down 54.8%) and Vertiv Holdings, Co. (down 42.0%) detracted from performance within the Industrials sector.

The Fund’s overweight allocation to the Energy sector (up 65.5%) and underweight allocation to the Communication Services sector (down 28.9%) helped performance the most with respect to sector allocation. On the other hand, an underweight allocation to the Consumer Staples sector (up 5.4%) detracted from the Fund’s relative outperformance.

The fixed-income portion of the Fund returned -15.38% for the twelve-month period, outperforming the Bloomberg US Aggregate Bond Index (the “Bloomberg Index”) return of -15.68%. The Fund’s fixed-income performance relative to the Bloomberg Index was helped by security selection but hampered by detractions from sector allocation. Selections in higher-quality securities, such as AA and A, (down 13.6% and 17.2%, respectively), contributed to relative value, as did the Fund’s selections in Service (within Corporates) and U.S. Treasuries (down 16.9% and 12.9%, respectively). However, an overweight allocation to Service (down 19.0%), within Corporates, detracted from value. From a duration perspective, the portfolio’s return was helped most by an overweight allocation to the zero to one year maturity (down 2.1%), but an underweight allocation to the three- to five-year maturity (down 10.8%) detracted from performance.

American Beacon Balanced Fund^SM

Performance Overview

October 31, 2022 (Unaudited)

The sub-advisors continue to focus on the disciplined selection of attractive securities that should allow the Fund to benefit long-term.


Top Ten Holdings (% Net Assets)
Wells Fargo & Co.		2.0
Elevance Health, Inc.		1.9
Hess Corp.		1.8
American International Group, Inc.		1.7
General Electric Co.		1.7
Citigroup, Inc.		1.4
Phillips 66		1.4
Oracle Corp.		1.3
Microsoft Corp.		1.1
U.S. Treasury Notes, 1.750%, Due 11/15/2029		1.1

Total Fund Holdings	468

Sector Allocation (% Equities)
Financials		20.1
Energy		13.9
Health Care		13.7
Industrials		13.0
Information Technology		12.6
Consumer Discretionary		8.7
Communication Services		7.1
Materials		5.0
Utilities		2.3
Consumer Staples		1.8
Real Estate		1.8

Sector Allocation (% Fixed Income)
U.S. Treasury Obligations		29.9
U.S. Agency Mortgage-Backed Obligations		19.2
Financial		15.5
Technology		5.3
Asset-Backed Obligations		4.9
Consumer, Non-Cyclical		4.9
Communications		4.7
Industrial		3.9
Utilities		3.9
Consumer, Cyclical		3.4
Energy		3.4
Commercial Mortgage-Backed Obligations		0.5
Basic Materials		0.4
Foreign Sovereign Obligations		0.1

American Beacon Balanced Fund^SM

Expense Examples

October 31, 2022 (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 May 1, 2022 through October 31, 2022.

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 R5 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 R5 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.

American Beacon Balanced Fund^SM

Expense Examples

October 31, 2022 (Unaudited)


American Beacon Balanced Fund

	Beginning Account Value 5/1/2022		Ending Account Value 10/31/2022		Expenses Paid During Period 5/1/2022-10/31/2022*
R5 Class
Actual		$1,000.00		$973.60		$3.73
Hypothetical**		$1,000.00		$1,021.43		$3.82
Y Class
Actual		$1,000.00		$972.70		$4.13
Hypothetical**		$1,000.00		$1,021.02		$4.23
Investor Class
Actual		$1,000.00		$972.40		$5.27
Hypothetical**		$1,000.00		$1,019.86		$5.40
Advisor Class
Actual		$1,000.00		$970.80		$6.06
Hypothetical**		$1,000.00		$1,019.06		$6.21
A Class
Actual		$1,000.00		$971.70		$5.32
Hypothetical**		$1,000.00		$1,019.81		$5.45
C Class
Actual		$1,000.00		$968.80		$8.98
Hypothetical**		$1,000.00		$1,016.08		$9.20

Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.75%, 0.83%, 1.06%, 1.22%, 1.07%, and 1.81% for the R5, Y, Investor, Advisor, 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 (184) by days in the year (365) to reflect the half-year period.

**	5% return before expenses.

American Beacon Balanced Fund^SM

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of American Beacon Funds and Shareholders of American Beacon Balanced Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of American Beacon Balanced Fund (one of the series constituting American Beacon Funds, referred to hereafter as the “Fund”) as of October 31, 2022, the related statements of operations and of changes in net assets for the year ended October 31, 2022, including the related notes, and the financial highlights for the year ended October 31, 2022 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2022, the results of its operations, the changes in its net assets, and the financial highlights for the year ended October 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

The financial statements of the Fund as of and for the year ended October 31, 2021 and the financial highlights for each of the periods ended on or prior to October 31, 2021 (not presented herein, other than the statement of changes in net assets and the financial highlights) were audited by other auditors whose report dated December 30, 2021 expressed an unqualified opinion on those financial statements and financial highlights.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2022 by correspondence with the custodians, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Boston, Massachusetts

December 30, 2022

We have served as the auditor of one or more investment companies in the American Beacon family of funds since 2016.

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Shares		Fair Value


COMMON STOCKS - 59.86%

Communication Services - 4.24%

Entertainment - 1.15%
Electronic Arts, Inc.		6,309		$	794,682
Warner Bros Discovery, Inc.^A		52,299			679,887

					1,474,569



Interactive Media & Services - 0.68%
Alphabet, Inc., Class A^A		9,200			869,492



Media - 1.61%
Altice USA, Inc., Class A^A		27,580			182,304
Comcast Corp., Class A		35,559			1,128,643
News Corp., Class A		22,600			381,262
Omnicom Group, Inc.		2,686			195,406
Paramount Global, Class B		10,200			186,864

					2,074,479



Wireless Telecommunication Services - 0.80%
T-Mobile U.S., Inc.^A		4,110			622,911
Vodafone Group PLC, ADR		34,832			411,366

					1,034,277


Total Communication Services					5,452,817



Consumer Discretionary - 5.20%

Auto Components - 0.99%
Adient PLC^A		4,532			158,530
Aptiv PLC^A		3,000			273,210
Goodyear Tire & Rubber Co.^A		9,459			120,129
Magna International, Inc.		12,804			713,567

					1,265,436



Automobiles - 0.94%
General Motors Co.		30,742			1,206,623



Hotels, Restaurants & Leisure - 1.59%
Aramark		21,899			799,314
Booking Holdings, Inc.^A		150			280,422
Las Vegas Sands Corp.^A		25,301			961,691

					2,041,427



Multiline Retail - 0.92%
Dollar General Corp.		4,648			1,185,472



Specialty Retail - 0.76%
Advance Auto Parts, Inc.		4,027			764,808
Lithia Motors, Inc.		1,078			213,606

					978,414


Total Consumer Discretionary					6,677,372



Consumer Staples - 1.06%

Personal Products - 0.52%
Unilever PLC, ADR^B		14,800			673,548



Tobacco - 0.54%
Philip Morris International, Inc.		7,478			686,854


Total Consumer Staples					1,360,402

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Shares		Fair Value


COMMON STOCKS - 59.86% (continued)

Energy - 8.33%

Energy Equipment & Services - 1.78%
Baker Hughes Co.		5,900		$	163,194
Halliburton Co.		32,668			1,189,768
NOV, Inc.		32,800			734,720
Schlumberger NV		3,800			197,714

					2,285,396



Oil, Gas & Consumable Fuels - 6.55%
APA Corp.		20,014			909,836
Cenovus Energy, Inc.^B		12,500			252,500
Hess Corp.		16,272			2,295,654
Marathon Oil Corp.		21,631			658,664
Murphy Oil Corp.		8,000			388,080
Ovintiv, Inc.		6,000			303,900
Phillips 66		17,036			1,776,685
Pioneer Natural Resources Co.		4,573			1,172,563
Shell PLC, ADR		11,935			663,944

					8,421,826


Total Energy					10,707,222



Financials - 12.05%

Banks - 5.29%
Citigroup, Inc.		37,857			1,736,122
Citizens Financial Group, Inc.		14,868			608,101
First Citizens BancShares, Inc., Class A		330			271,300
M&T Bank Corp.		6,133			1,032,613
U.S. Bancorp		13,383			568,108
Wells Fargo & Co.		56,118			2,580,867

					6,797,111



Capital Markets - 2.50%
Bank of New York Mellon Corp.		18,515			779,666
Goldman Sachs Group, Inc.		2,917			1,004,936
Northern Trust Corp.		7,991			674,041
State Street Corp.		10,106			747,844

					3,206,487



Consumer Finance - 0.60%
American Express Co.		3,839			569,900
Capital One Financial Corp.		1,900			201,438

					771,338



Diversified Financial Services - 0.31%
Corebridge Financial, Inc.		8,900			201,763
Equitable Holdings, Inc.		6,400			195,968

					397,731



Insurance - 3.35%
Allstate Corp.		5,781			729,851
American International Group, Inc.		39,431			2,247,567
Hartford Financial Services Group, Inc.		8,800			637,208
Willis Towers Watson PLC		3,164			690,417

					4,305,043


Total Financials					15,477,710



Health Care - 8.18%

Health Care Equipment & Supplies - 0.91%
Medtronic PLC		10,597			925,542

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Shares		Fair Value


COMMON STOCKS - 59.86% (continued)

Health Care - 8.18% (continued)

Health Care Equipment & Supplies - 0.91% (continued)
Zimmer Biomet Holdings, Inc.		2,132		$	241,662

					1,167,204



Health Care Providers & Services - 5.14%
Centene Corp.^A		6,000			510,780
Cigna Corp.		900			290,754
CVS Health Corp.		12,173			1,152,783
Elevance Health, Inc.		4,421			2,417,270
HCA Healthcare, Inc.		2,000			434,940
Humana, Inc.		740			412,979
UnitedHealth Group, Inc.		2,500			1,387,875

					6,607,381



Pharmaceuticals - 2.13%
GSK PLC, ADR		5,554			184,226
Merck & Co., Inc.		12,317			1,246,480
Perrigo Co. PLC		27,527			1,108,788
Sanofi, ADR		4,503			194,665

					2,734,159


Total Health Care					10,508,744



Industrials - 7.81%

Aerospace & Defense - 0.64%
Boeing Co.^A		2,900			413,279
Raytheon Technologies Corp.		4,300			407,726

					821,005



Air Freight & Logistics - 0.77%
FedEx Corp.		6,200			993,736



Construction & Engineering - 0.92%
AECOM		14,083			1,060,168
Fluor Corp.^A		4,100			124,066

					1,184,234



Electrical Equipment - 0.81%
Vertiv Holdings Co.		72,740			1,040,910



Industrial Conglomerates - 1.71%
General Electric Co.		28,162			2,191,285



Machinery - 2.40%
CNH Industrial NV		38,380			496,637
Cummins, Inc.		2,172			531,076
Deere & Co.		3,002			1,188,252
PACCAR, Inc.		3,839			371,730
Stanley Black & Decker, Inc.		6,360			499,196

					3,086,891



Road & Rail - 0.56%
JB Hunt Transport Services, Inc.		4,199			718,323


Total Industrials					10,036,384



Information Technology - 7.55%

Communications Equipment - 1.00%
F5, Inc.^A		6,400			914,624

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Shares		Fair Value


COMMON STOCKS - 59.86% (continued)

Information Technology - 7.55% (continued)

Communications Equipment - 1.00% (continued)
Telefonaktiebolaget LM Ericsson, ADR^B		67,620		$	376,643

					1,291,267



Electronic Equipment, Instruments & Components - 0.61%
Corning, Inc.		11,795			379,445
TE Connectivity Ltd.		3,258			398,226

					777,671



IT Services - 1.54%
Cognizant Technology Solutions Corp., Class A		12,063			750,922
Fidelity National Information Services, Inc.		12,440			1,032,395
Fiserv, Inc.^A		1,900			195,206

					1,978,523



Semiconductors & Semiconductor Equipment - 1.23%
Broadcom, Inc.		1,802			847,156
Micron Technology, Inc.		6,700			362,470
QUALCOMM, Inc.		3,171			373,100

					1,582,726



Software - 3.17%
Microsoft Corp.		6,195			1,438,046
Oracle Corp.		21,517			1,679,832
Workday, Inc., Class A^A		6,100			950,502

					4,068,380


Total Information Technology					9,698,567



Materials - 2.99%

Chemicals - 2.90%
Air Products & Chemicals, Inc.		4,951			1,239,731
Axalta Coating Systems Ltd.^A		25,960			605,387
DuPont de Nemours, Inc.		9,452			540,654
International Flavors & Fragrances, Inc.		8,565			836,030
Olin Corp.		9,400			497,730

					3,719,532



Containers & Packaging - 0.09%
International Paper Co.		3,525			118,475


Total Materials					3,838,007



Real Estate - 1.09%

Equity Real Estate Investment Trusts (REITs) - 1.09%
VICI Properties, Inc.		43,845			1,403,917



Utilities - 1.36%

Electric Utilities - 1.36%
Pinnacle West Capital Corp.		12,563			844,359
PPL Corp.		34,247			907,203

					1,751,562


Total Utilities					1,751,562


Total Common Stocks (Cost $63,970,350)					76,912,704

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Principal Amount			Fair Value


CORPORATE OBLIGATIONS - 14.09%

Basic Materials - 0.07%

Chemicals - 0.04%
EI du Pont de Nemours & Co., 1.700%, Due 7/15/2025		$	55,000		$	50,341



Forest Products & Paper - 0.03%
International Paper Co., 6.000%, Due 11/15/2041			40,000			37,225


Total Basic Materials						87,566



Communications - 1.02%

Internet - 0.24%
Amazon.com, Inc.,
1.200%, Due 6/3/2027			250,000			212,451
3.875%, Due 8/22/2037			105,000			89,056

						301,507



Media - 0.37%
Charter Communications Operating LLC/Charter Communications Operating Capital, 2.800%, Due 4/1/2031			50,000			37,873
3.500%, Due 3/1/2042			50,000			31,113
3.700%, Due 4/1/2051			60,000			35,705
Comcast Corp.,
3.400%, Due 4/1/2030			70,000			61,650
1.950%, Due 1/15/2031			60,000			46,469
6.550%, Due 7/1/2039			217,000			229,465
2.887%, Due 11/1/2051			64,000			38,268

						480,543



Telecommunications - 0.41%
AT&T, Inc., 2.250%, Due 2/1/2032			50,000			37,565
T-Mobile USA, Inc., 3.875%, Due 4/15/2030			230,000			203,001
Verizon Communications, Inc.,
4.329%, Due 9/21/2028			180,000			168,684
4.500%, Due 8/10/2033			50,000			44,500
3.400%, Due 3/22/2041			105,000			74,410

						528,160


Total Communications						1,310,210



Consumer, Cyclical - 1.28%

Airlines - 0.05%
American Airlines Pass-Through Trust, 3.150%, Due 8/15/2033, Series AA			73,476			60,106



Auto Manufacturers - 0.49%
American Honda Finance Corp., 2.000%, Due 3/24/2028			55,000			46,209
Toyota Motor Credit Corp., 2.500%, Due 3/22/2024			115,000			111,106
1.800%, Due 2/13/2025			500,000			465,759

						623,074



Home Furnishings - 0.02%
Whirlpool Corp., 4.600%, Due 5/15/2050			35,000			25,211



Lodging - 0.04%
Marriott International, Inc., 5.000%, Due 10/15/2027			60,000			57,731



Retail - 0.68%
AutoNation, Inc., 3.850%, Due 3/1/2032			90,000			69,965

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Principal Amount			Fair Value


CORPORATE OBLIGATIONS - 14.09% (continued)

Consumer, Cyclical - 1.28% (continued)

Retail - 0.68% (continued)
Home Depot, Inc., 2.950%, Due 6/15/2029		$	500,000		$	440,406
Tractor Supply Co., 1.750%, Due 11/1/2030			60,000			44,494
Walmart, Inc.,
2.375%, Due 9/24/2029			150,000			128,201
7.550%, Due 2/15/2030			169,000			195,796

						878,862


Total Consumer, Cyclical						1,644,984



Consumer, Non-Cyclical - 1.25%

Agriculture - 0.04%
Cargill, Inc., 1.375%, Due 7/23/2023^C			50,000			48,662



Biotechnology - 0.03%
Amgen, Inc., 4.400%, Due 5/1/2045			55,000			44,224



Commercial Services - 0.11%
Moody’s Corp., 2.550%, Due 8/18/2060			50,000			25,461
Quanta Services, Inc.,
2.900%, Due 10/1/2030			85,000			67,012
3.050%, Due 10/1/2041			70,000			42,653

						135,126



Food - 0.03%
Mondelez International, Inc., 1.500%, Due 2/4/2031			50,000			36,796



Health Care - Services - 0.51%
Children’s Health System of Texas, 2.511%, Due 8/15/2050			65,000			35,900
Community Health Network, Inc., 3.099%, Due 5/1/2050, Series 20 A			80,000			46,847
Health Care Service Corp. A Mutual Legal Reserve Co., 3.200%, Due 6/1/2050^C			40,000			25,394
Kaiser Foundation Hospitals, 3.002%, Due 6/1/2051, Series 2021			50,000			30,750
UnitedHealth Group, Inc.,
0.550%, Due 5/15/2024			350,000			327,409
3.875%, Due 12/15/2028			140,000			130,143
5.875%, Due 2/15/2053			60,000			61,082

						657,525



Pharmaceuticals - 0.53%
AbbVie, Inc.,
4.450%, Due 5/14/2046			45,000			35,853
4.875%, Due 11/14/2048			60,000			51,121
Bristol-Myers Squibb Co., 3.400%, Due 7/26/2029			588,000			533,755
CVS Health Corp., 4.300%, Due 3/25/2028			39,000			36,576
Viatris, Inc., 3.850%, Due 6/22/2040			35,000			21,748

						679,053


Total Consumer, Non-Cyclical						1,601,386



Energy - 0.70%

Oil & Gas - 0.30%
Chevron USA, Inc., 2.343%, Due 8/12/2050			50,000			29,444
ConocoPhillips Co., 2.125%, Due 3/8/2024			135,000			129,964
Diamondback Energy, Inc.,
3.125%, Due 3/24/2031			120,000			97,969
4.250%, Due 3/15/2052			65,000			46,724
Phillips 66 Co., 3.750%, Due 3/1/2028^C			65,000			58,348

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Principal Amount			Fair Value


CORPORATE OBLIGATIONS - 14.09% (continued)

Energy - 0.70% (continued)

Oil & Gas - 0.30% (continued)
Pioneer Natural Resources Co., 2.150%, Due 1/15/2031		$	25,000		$	19,321

						381,770



Pipelines - 0.40%
Cheniere Corpus Christi Holdings LLC, 2.742%, Due 12/31/2039			53,000			38,957
Kinder Morgan, Inc., 4.800%, Due 2/1/2033			35,000			31,230
MPLX LP,
1.750%, Due 3/1/2026			75,000			65,374
4.125%, Due 3/1/2027			40,000			37,074
ONEOK, Inc., 4.550%, Due 7/15/2028			50,000			45,359
Sabine Pass Liquefaction LLC,
4.200%, Due 3/15/2028			155,000			141,274
4.500%, Due 5/15/2030			50,000			45,625
Williams Cos., Inc.,
2.600%, Due 3/15/2031			100,000			78,279
5.400%, Due 3/4/2044			45,000			38,032

						521,204


Total Energy						902,974



Financial - 5.12%

Banks - 3.54%
Bank of America Corp.,
4.125%, Due 1/22/2024			193,000			190,679
1.734%, Due 7/22/2027, (Secured Overnight Financing Rate + 0.960%)^D			350,000			299,577
2.592%, Due 4/29/2031, (Secured Overnight Financing Rate + 2.150%)^D			50,000			39,445
2.299%, Due 7/21/2032, (Secured Overnight Financing Rate + 1.220%)^D			150,000			110,973
2.482%, Due 9/21/2036, (5 yr. CMT + 1.200%)^D			60,000			42,845
6.110%, Due 1/29/2037			176,000			168,631
2.676%, Due 6/19/2041, (Secured Overnight Financing Rate + 1.930%)^D			80,000			50,510
5.000%, Due 1/21/2044			65,000			55,432
Citigroup, Inc., 1.281%, Due 11/3/2025, (Secured Overnight Financing Rate + 0.528%)^D			40,000			36,236
3.400%, Due 5/1/2026			350,000			324,026
4.412%, Due 3/31/2031, (Secured Overnight Financing Rate + 3.914%)^D			225,000			200,266
5.875%, Due 1/30/2042			145,000			135,100
Fifth Third Bank NA, 2.250%, Due 2/1/2027			500,000			436,979
Goldman Sachs Group, Inc., 1.431%, Due 3/9/2027, (Secured Overnight Financing Rate + 0.798%)^D			110,000			94,086
1.542%, Due 9/10/2027, (Secured Overnight Financing Rate + 0.818%)^D			85,000			71,314
2.615%, Due 4/22/2032, (Secured Overnight Financing Rate + 1.281%)^D			55,000			41,960
JPMorgan Chase & Co., 3.625%, Due 5/13/2024			434,000			425,047
2.301%, Due 10/15/2025, (Secured Overnight Financing Rate + 1.160%)^D			160,000			149,195
3.782%, Due 2/1/2028, (3 mo. USD LIBOR + 1.337%)^D			85,000			77,340
2.963%, Due 1/25/2033, (Secured Overnight Financing Rate + 1.260%)^D			80,000			62,439
3.882%, Due 7/24/2038, (3 mo. USD LIBOR + 1.360%)^D			90,000			69,990
5.500%, Due 10/15/2040			313,000			286,766
Morgan Stanley,
0.864%, Due 10/21/2025, Series I, (Secured Overnight Financing Rate + 0.745%)^D			90,000			81,156
3.591%, Due 7/22/2028, (3 mo. USD LIBOR + 1.340%)^D			100,000			89,601
1.794%, Due 2/13/2032, (Secured Overnight Financing Rate + 1.034%)^D			115,000			82,854
2.239%, Due 7/21/2032, (Secured Overnight Financing Rate + 1.178%)^D			65,000			48,067
Northern Trust Corp., 6.125%, Due 11/2/2032			60,000			59,993
PNC Financial Services Group, Inc., 3.400%, Due 9/15/2026, Series T, (5 yr. CMT + 2.595%)^{D E}			80,000			59,700
2.550%, Due 1/22/2030			500,000			405,455

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Principal Amount			Fair Value


CORPORATE OBLIGATIONS - 14.09% (continued)

Financial - 5.12% (continued)

Banks - 3.54% (continued)
State Street Corp., 2.354%, Due 11/1/2025, (Secured Overnight Financing Rate + 0.940%)^D		$	65,000		$	61,070
2.200%, Due 3/3/2031			55,000			42,146
Truist Financial Corp., 1.267%, Due 3/2/2027, (Secured Overnight Financing Rate + 0.609%)^D			55,000			47,445
U.S. Bancorp, 4.967%, Due 7/22/2033, (Secured Overnight Financing Rate + 2.110%)^D			60,000			54,586
Wells Fargo & Co., 2.572%, Due 2/11/2031, (Secured Overnight Financing Rate + 1.262%)^D			140,000			111,457
5.375%, Due 11/2/2043			50,000			42,282

						4,554,648



Diversified Financial Services - 0.23%
American Express Co., 4.200%, Due 11/6/2025			60,000			58,209
Charles Schwab Corp., 0.750%, Due 3/18/2024			45,000			42,447
3.250%, Due 5/22/2029			50,000			44,148
CME Group, Inc., 2.650%, Due 3/15/2032			120,000			96,447
Intercontinental Exchange, Inc., 4.950%, Due 6/15/2052			60,000			51,313

						292,564



Insurance - 0.81%
Berkshire Hathaway Finance Corp., 2.300%, Due 3/15/2027			300,000			269,839
3.850%, Due 3/15/2052			50,000			36,551
CNA Financial Corp., 4.500%, Due 3/1/2026			65,000			62,683
Fidelity National Financial, Inc., 3.200%, Due 9/17/2051			55,000			29,327
MetLife, Inc., 6.375%, Due 6/15/2034			169,000			175,619
4.721%, Due 12/15/2044			193,000			158,795
Progressive Corp., 2.500%, Due 3/15/2027			55,000			49,067
Prudential Financial, Inc., 4.600%, Due 5/15/2044			313,000			257,463

						1,039,344



REITS - 0.54%
Alexandria Real Estate Equities, Inc., 1.875%, Due 2/1/2033			50,000			34,566
American Tower Corp., 2.300%, Due 9/15/2031			80,000			59,478
Camden Property Trust, 3.150%, Due 7/1/2029			70,000			59,949
Crown Castle, Inc., 3.800%, Due 2/15/2028			50,000			45,057
2.900%, Due 4/1/2041			55,000			34,644
Digital Realty Trust LP, 3.700%, Due 8/15/2027			55,000			49,837
Prologis LP, 1.250%, Due 10/15/2030			50,000			36,564
Public Storage, 2.250%, Due 11/9/2031			100,000			76,693
Simon Property Group LP, 3.375%, Due 10/1/2024			313,000			301,165

						697,953


Total Financial						6,584,509



Industrial - 1.19%

Aerospace/Defense - 0.28%
Boeing Co., 2.750%, Due 2/1/2026			60,000			54,099
5.805%, Due 5/1/2050			60,000			51,417
Northrop Grumman Corp., 3.850%, Due 4/15/2045			55,000			41,518
Raytheon Technologies Corp., 6.125%, Due 7/15/2038			217,000			218,397

						365,431

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Principal Amount			Fair Value


CORPORATE OBLIGATIONS - 14.09% (continued)

Industrial - 1.19% (continued)

Building Materials - 0.03%
Martin Marietta Materials, Inc., 0.650%, Due 7/15/2023		$	40,000		$	38,692



Environmental Control - 0.07%
Waste Connections, Inc., 2.200%, Due 1/15/2032			50,000			38,432
4.200%, Due 1/15/2033			60,000			54,205

						92,637



Machinery - Diversified - 0.33%
John Deere Capital Corp., 2.450%, Due 1/9/2030			500,000			417,000



Miscellaneous Manufacturing - 0.04%
Carlisle Cos., Inc., 2.200%, Due 3/1/2032			65,000			47,749



Packaging & Containers - 0.07%
Amcor Flexibles North America, Inc., 2.690%, Due 5/25/2031			35,000			26,861
Berry Global, Inc., 1.650%, Due 1/15/2027			80,000			65,905

						92,766



Transportation - 0.37%
Burlington Northern Santa Fe LLC,
5.750%, Due 5/1/2040			202,000			199,545
4.450%, Due 1/15/2053			60,000			50,021
CSX Corp., 5.500%, Due 4/15/2041			157,000			147,794
FedEx Corp., 3.250%, Due 5/15/2041			55,000			36,342
Union Pacific Corp., 4.100%, Due 9/15/2067			55,000			39,630

						473,332


Total Industrial						1,527,607



Technology - 1.99%

Computers - 1.15%
Apple, Inc., 1.400%, Due 8/5/2028			200,000			165,529
2.200%, Due 9/11/2029			300,000			253,197
3.950%, Due 8/8/2052			60,000			47,425
Dell International LLC/EMC Corp., 5.300%, Due 10/1/2029			140,000			130,973
3.450%, Due 12/15/2051^C			70,000			39,409
Hewlett Packard Enterprise Co., 6.350%, Due 10/15/2045			500,000			450,823
International Business Machines Corp., 4.250%, Due 5/15/2049			500,000			386,523

						1,473,879



Semiconductors - 0.75%
Entegris Escrow Corp., 4.750%, Due 4/15/2029^C			70,000			61,874
Intel Corp., 1.600%, Due 8/12/2028			500,000			412,302
Lam Research Corp., 3.750%, Due 3/15/2026			35,000			33,549
1.900%, Due 6/15/2030			65,000			50,893
NVIDIA Corp., 1.550%, Due 6/15/2028			500,000			412,761

						971,379



Software - 0.09%
Oracle Corp., 4.300%, Due 7/8/2034			82,000			67,376
VMware, Inc., 2.200%, Due 8/15/2031			60,000			43,630

						111,006


Total Technology						2,556,264

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Principal Amount			Fair Value


CORPORATE OBLIGATIONS - 14.09% (continued)

Utilities - 1.47%

Electric - 1.34%
American Electric Power Co., Inc., 2.031%, Due 3/15/2024		$	100,000		$	95,447
Appalachian Power Co., 4.500%, Due 3/1/2049, Series Y			25,000			19,279
Berkshire Hathaway Energy Co., 6.125%, Due 4/1/2036			235,000			237,945
Consolidated Edison Co. of New York, Inc., 5.500%, Due 12/1/2039, Series 09 C			169,000			154,076
Consumers Energy Co., 2.500%, Due 5/1/2060			55,000			28,671
Dominion Energy, Inc., 3.375%, Due 4/1/2030, Series C			45,000			38,594
DTE Energy Co., 1.050%, Due 6/1/2025, Series F			90,000			80,299
Duke Energy Corp., 2.650%, Due 9/1/2026			75,000			67,801
Duke Energy Progress LLC, 4.150%, Due 12/1/2044			75,000			58,170
Duke Energy Progress NC Storm Funding LLC, 2.387%, Due 7/1/2039, Series A 2			265,000			206,216
Entergy Arkansas LLC, 3.350%, Due 6/15/2052			55,000			35,541
Entergy Corp., 2.800%, Due 6/15/2030			30,000			24,056
Entergy Louisiana LLC, 4.000%, Due 3/15/2033			47,000			40,962
Exelon Corp., 4.050%, Due 4/15/2030			60,000			53,812
Florida Power & Light Co., 3.950%, Due 3/1/2048			50,000			38,542
Kentucky Utilities Co., 3.300%, Due 6/1/2050			55,000			36,012
National Rural Utilities Cooperative Finance Corp., 1.000%, Due 10/18/2024, Series D			65,000			59,769
5.450%, Due 10/30/2025			70,000			70,271
Northern States Power Co., 2.600%, Due 6/1/2051			50,000			29,623
Ohio Power Co., 2.600%, Due 4/1/2030, Series P			60,000			49,100
Oklahoma Gas & Electric Co., 0.553%, Due 5/26/2023			70,000			68,235
Sempra Energy, 3.300%, Due 4/1/2025			110,000			104,090
Vistra Operations Co. LLC, 5.125%, Due 5/13/2025^C			130,000			125,539

						1,722,050



Gas - 0.13%
National Fuel Gas Co., 3.950%, Due 9/15/2027			80,000			70,626
Sempra Global, 3.250%, Due 1/15/2032^C			65,000			50,826
Southern California Gas Co., 2.550%, Due 2/1/2030			50,000			41,288

						162,740


Total Utilities						1,884,790


Total Corporate Obligations (Cost $21,215,881)						18,100,290



FOREIGN CORPORATE OBLIGATIONS - 2.92%

Basic Materials - 0.08%

Mining - 0.08%
Glencore Funding LLC, 2.625%, Due 9/23/2031^C			45,000			33,715
Teck Resources Ltd., 6.000%, Due 8/15/2040			75,000			65,804

						99,519


Total Basic Materials						99,519



Communications - 0.76%

Internet - 0.23%
Alibaba Group Holding Ltd., 3.600%, Due 11/28/2024			313,000			296,545



Media - 0.26%
Thomson Reuters Corp.,
4.300%, Due 11/23/2023			145,000			143,666
3.850%, Due 9/29/2024			193,000			185,953

						329,619



Telecommunications - 0.27%
America Movil SAB de CV, 6.375%, Due 3/1/2035			169,000			169,021
Deutsche Telekom International Finance BV, 4.875%, Due 3/6/2042^C			150,000			123,411

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Principal Amount			Fair Value


FOREIGN CORPORATE OBLIGATIONS - 2.92% (continued)

Communications - 0.76% (continued)

Telecommunications - 0.27% (continued)
TELUS Corp., 3.400%, Due 5/13/2032		$	60,000		$	49,130

						341,562


Total Communications						967,726



Consumer, Non-Cyclical - 0.57%

Agriculture - 0.09%
BAT Capital Corp., 2.259%, Due 3/25/2028			80,000			63,375
Reynolds American, Inc., 5.700%, Due 8/15/2035			60,000			50,631

						114,006



Beverages - 0.48%
Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc., 4.900%, Due 2/1/2046			35,000			29,906
Anheuser-Busch InBev Worldwide, Inc.,
4.375%, Due 4/15/2038			35,000			29,813
5.450%, Due 1/23/2039			500,000			468,444
5.550%, Due 1/23/2049			35,000			32,900
Coca-Cola Femsa SAB de CV, 2.750%, Due 1/22/2030			70,000			58,899

						619,962


Total Consumer, Non-Cyclical						733,968



Energy - 0.55%

Oil & Gas - 0.33%
Saudi Arabian Oil Co., 4.375%, Due 4/16/2049^C			500,000			388,750
TotalEnergies Capital International SA, 3.127%, Due 5/29/2050			50,000			32,849

						421,599



Pipelines - 0.22%
Enbridge, Inc., 2.500%, Due 2/14/2025			70,000			65,387
TransCanada PipeLines Ltd.,
3.750%, Due 10/16/2023			145,000			142,663
6.100%, Due 6/1/2040			82,000			78,041

						286,091


Total Energy						707,690



Financial - 0.69%

Banks - 0.60%
Mitsubishi UFJ Financial Group, Inc., 2.193%, Due 2/25/2025			75,000			69,160
Royal Bank of Canada,
2.250%, Due 11/1/2024			115,000			108,019
1.200%, Due 4/27/2026			500,000			431,368
Toronto-Dominion Bank, 3.250%, Due 3/11/2024			160,000			155,530

						764,077



Financial Services - 0.09%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.000%, Due 10/29/2028			150,000			121,109


Total Financial						885,186



Industrial - 0.27%

Aerospace/Defense - 0.23%
BAE Systems Holdings, Inc., 3.800%, Due 10/7/2024^C			313,000			302,713

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Principal Amount			Fair Value


FOREIGN CORPORATE OBLIGATIONS - 2.92% (continued)

Industrial - 0.27% (continued)

Transportation - 0.04%
Canadian Pacific Railway Co., 3.100%, Due 12/2/2051		$	75,000		$	47,488


Total Industrial						350,201


Total Foreign Corporate Obligations (Cost $4,224,985)						3,744,290



FOREIGN SOVEREIGN OBLIGATIONS - 0.04% (Cost $69,937)
Mexico Government International Bonds, 4.600%, Due 1/23/2046			65,000			47,630



ASSET-BACKED OBLIGATIONS - 1.83%
Ally Auto Receivables Trust, 3.310%, Due 11/15/2026, 2022 1 A3			110,000			106,639
AmeriCredit Automobile Receivables Trust,
0.370%, Due 8/18/2025, 2021 1 A3			61,756			60,531
0.340%, Due 12/18/2026, 2021 2 A3			70,000			67,460
4.380%, Due 4/18/2028, 2021 2 A3			90,000			87,951
BMW Vehicle Owner Trust, 3.210%, Due 8/25/2026, 2022 A A3			55,000			53,178
Capital One Multi-Asset Execution Trust, 0.550%, Due 7/15/2026, 2021 A1 A1			115,000			106,766
CNH Equipment Trust,
1.160%, Due 6/16/2025, 2020 A A3			46,737			45,905
0.400%, Due 12/15/2025, 2021 A A3			95,000			90,942
Ford Credit Auto Lease Trust, 3.230%, Due 5/15/2025, 2022 2 A3			150,000			146,247
Ford Credit Auto Owner Trust, 1.530%, Due 5/15/2034, 2021 2 A^C			110,000			95,162
GM Financial Automobile Leasing Trust,
1.900%, Due 3/20/2025, 2022 1 A3			105,000			100,780
4.010%, Due 9/22/2025, 2022 3 A3			90,000			88,156
GM Financial Consumer Automobile Receivables Trust, 1.490%, Due 12/16/2024, 2020 2 A3			16,036			15,844
GM Financial Revolving Receivables Trust, 1.170%, Due 6/12/2034, 2021 1 A^C			90,000			77,047
Honda Auto Receivables Owner Trust, 1.880%, Due 5/15/2026, 2022 1 A3			120,000			113,576
John Deere Owner Trust,
2.320%, Due 9/16/2026, 2022 A A3			95,000			90,289
3.740%, Due 2/16/2027, 2022 B A3			100,000			97,173
Mercedes-Benz Auto Lease Trust, 0.400%, Due 11/15/2024, 2021 B A3			150,000			144,435
New Economy Assets Phase 1 Sponsor LLC, 1.910%, Due 10/20/2061, 2021 1 A1^C			125,000			104,691
PSNH Funding LLC, 3.094%, Due 2/1/2026, 2018 1 A1			29,725			29,333
Taco Bell Funding LLC, 2.294%, Due 8/25/2051, 2021 1A A2II^C			99,250			77,315
Toyota Auto Loan Extended Note Trust, 1.350%, Due 5/25/2033, 2020 1A A^C			135,000			121,296
Toyota Auto Receivables Owner Trust,
1.360%, Due 8/15/2024, 2020 B A3			54,825			54,128
1.230%, Due 6/15/2026, 2022 A A3			95,000			89,758
Verizon Master Trust, 0.500%, Due 5/20/2027, 2021 1 A			200,000			185,890
Volkswagen Auto Loan Enhanced Trust, 1.020%, Due 6/22/2026, 2021 1 A3			110,000			103,725


Total Asset-Backed Obligations (Cost $2,515,876)						2,354,217



COMMERCIAL MORTGAGE-BACKED OBLIGATIONS - 0.19%
BX Commercial Mortgage Trust, 4.112%, Due 9/15/2036, 2021 VOLT A, (1 mo. USD LIBOR + 0.700%)^C D			140,000			132,985
Cold Storage Trust, 4.312%, Due 11/15/2037, 2020 ICE5 A, (1 mo. USD LIBOR + 0.900%)^{C D}			113,044			109,587


Total Commercial Mortgage-Backed Obligations (Cost $253,044)						242,572



U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 7.17%
Federal Home Loan Mortgage Corp.,
3.500%, Due 9/1/2028			15,280			14,772
3.000%, Due 11/1/2032			53,767			49,693
5.000%, Due 8/1/2033			18,837			18,726
5.500%, Due 2/1/2034			18,594			19,011
2.500%, Due 6/1/2035			75,830			68,464

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Principal Amount			Fair Value


U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 7.17% (continued)
Federal Home Loan Mortgage Corp., (continued)
2.000%, Due 3/1/2036		$	212,844		$	187,261
2.000%, Due 10/1/2040			82,797			68,528
2.000%, Due 1/1/2041			192,022			158,927
4.000%, Due 1/1/2041			50,811			47,800
4.500%, Due 2/1/2041			35,904			34,693
2.500%, Due 9/1/2041			301,594			256,208
2.500%, Due 11/1/2041			313,410			264,886
3.500%, Due 5/1/2042			153,305			136,763
3.500%, Due 6/1/2042			160,274			145,746
3.000%, Due 4/1/2047			173,445			150,553
3.500%, Due 1/1/2048			162,136			145,894
4.000%, Due 4/1/2048			76,288			70,772
3.000%, Due 8/1/2048			121,600			104,974
3.000%, Due 11/1/2049			120,193			102,887
2.500%, Due 11/1/2051			152,043			125,549
2.500%, Due 5/1/2052			123,049			101,329

						2,273,436

Federal National Mortgage Association,
3.500%, Due 1/1/2028^F			12,738			12,293
5.000%, Due 3/1/2034^F			20,543			20,140
4.500%, Due 4/1/2034			31,867			30,485
3.000%, Due 10/1/2034			4,940			4,556
2.000%, Due 11/1/2035^F			154,796			136,209
2.000%, Due 12/1/2035^F			68,972			60,686
2.000%, Due 1/1/2036^F			123,523			108,682
2.000%, Due 5/1/2036			60,367			53,108
2.000%, Due 6/1/2036			89,961			79,144
3.500%, Due 6/1/2037			95,533			88,666
5.500%, Due 6/1/2038			4,360			4,450
4.500%, Due 1/1/2040			36,629			35,456
5.000%, Due 5/1/2040			64,159			64,164
5.000%, Due 6/1/2040			46,419			46,423
4.000%, Due 9/1/2040			33,382			31,365
4.000%, Due 1/1/2041			68,939			64,383
2.500%, Due 11/1/2041			127,562			107,812
3.000%, Due 6/1/2043			309,773			271,544
3.500%, Due 7/1/2043			61,561			55,809
3.000%, Due 8/1/2043			281,865			246,831
4.000%, Due 11/1/2044^F			43,774			41,020
4.000%, Due 7/1/2045			176,617			164,944
3.500%, Due 8/1/2045			32,687			29,442
3.500%, Due 11/1/2045			296,863			267,398
3.500%, Due 1/1/2046			121,605			109,535
3.500%, Due 5/1/2046			30,936			27,865
4.000%, Due 7/1/2046			64,500			60,442
3.000%, Due 10/1/2046			24,282			21,081
3.000%, Due 11/1/2046			148,150			128,565
3.000%, Due 12/1/2046^F			85,692			74,488
3.500%, Due 3/1/2047			33,504			30,147
4.500%, Due 7/1/2047			19,253			18,365
4.500%, Due 8/1/2047			29,079			27,796
3.500%, Due 9/1/2047			42,353			38,078
4.000%, Due 3/1/2048			49,503			45,712
4.500%, Due 4/1/2048			13,700			13,060
4.500%, Due 7/1/2048^F			35,846			34,277
4.500%, Due 7/1/2048			45,267			43,311
4.500%, Due 10/1/2049			101,357			96,196
4.000%, Due 11/1/2049			183,773			169,537

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Principal Amount			Fair Value


U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 7.17% (continued)
Federal National Mortgage Association, (continued)
2.500%, Due 8/1/2050^F		$	182,064		$	150,600
2.500%, Due 8/1/2050			188,516			155,644
3.000%, Due 8/1/2050			103,889			88,870
2.500%, Due 9/1/2050			124,218			102,558
2.500%, Due 10/1/2050^F			57,272			47,211
3.000%, Due 10/1/2050^F			119,200			102,013
3.000%, Due 11/1/2050^F			64,631			55,274
2.000%, Due 3/1/2051^F			468,201			372,147
2.000%, Due 4/1/2051^F			263,969			210,974
3.000%, Due 5/1/2051^F			126,534			108,804
3.000%, Due 6/1/2051			137,054			116,963
3.500%, Due 6/1/2051^F			154,667			136,595
3.500%, Due 7/1/2051^F			138,653			123,337
3.000%, Due 11/1/2051^F			93,345			79,596
2.500%, Due 2/1/2052			383,434			315,889

						5,129,940

Government National Mortgage Association,
6.500%, Due 8/15/2027			11,277			11,603
6.500%, Due 11/15/2027			13,045			13,421
7.500%, Due 12/15/2028			13,267			13,735
5.500%, Due 7/15/2033			19,387			20,329
6.000%, Due 12/15/2033			26,829			28,280
5.500%, Due 2/20/2034			27,033			27,428
5.000%, Due 10/15/2039			46,314			46,438
3.500%, Due 9/15/2041			93,782			86,145
3.500%, Due 8/20/2047			17,309			15,730
3.500%, Due 10/20/2047			16,018			14,557
4.000%, Due 1/20/2048			80,327			75,253
5.000%, Due 1/20/2050			40,040			39,273
4.500%, Due 2/20/2050			35,163			33,737
5.000%, Due 2/20/2050			20,360			20,086
2.500%, Due 4/20/2050			166,046			141,575
2.500%, Due 6/20/2051			163,299			138,756
3.000%, Due 6/20/2051			71,591			62,571
2.500%, Due 7/20/2051			255,895			217,403
3.000%, Due 8/20/2051			163,069			143,788
2.500%, Due 11/20/2051			129,313			109,909
3.000%, Due 12/20/2051			315,325			275,540
3.500%, Due 1/20/2052			114,241			102,992
4.000%, Due 3/20/2052			121,405			112,020
2.500%, Due 4/20/2052			72,759			61,715

						1,812,284


Total U.S. Agency Mortgage-Backed Obligations (Cost $10,704,070)						9,215,660



U.S. TREASURY OBLIGATIONS - 11.16%
U.S. Treasury Bonds,
6.875%, Due 8/15/2025			279,000			296,154
5.250%, Due 11/15/2028			217,000			227,401
4.750%, Due 2/15/2037			304,000			322,620
4.500%, Due 8/15/2039			241,000			246,592
2.250%, Due 5/15/2041			365,000			262,201
1.750%, Due 8/15/2041			495,000			321,769
2.750%, Due 8/15/2042			250,000			192,490
2.875%, Due 5/15/2049			500,000			387,656
1.375%, Due 8/15/2050			1,185,000			628,189
2.875%, Due 5/15/2052			185,000			142,826

						3,027,898

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022



	Principal Amount			Fair Value


U.S. TREASURY OBLIGATIONS - 11.16% (continued)
U.S. Treasury Notes,
2.000%, Due 2/15/2023		$	200,000		$	198,743
1.250%, Due 7/31/2023			575,000			560,670
2.750%, Due 7/31/2023			500,000			493,574
2.500%, Due 8/15/2023			964,000			947,808
2.125%, Due 11/30/2023			250,000			243,330
2.375%, Due 2/29/2024			200,000			194,180
0.250%, Due 3/15/2024			150,000			141,275
1.250%, Due 8/31/2024			955,000			899,416
1.750%, Due 12/31/2024			400,000			377,844
1.125%, Due 1/15/2025			250,000			232,344
1.125%, Due 2/28/2025			730,000			676,162
2.875%, Due 7/31/2025			500,000			479,551
0.625%, Due 7/31/2026			500,000			435,469
1.625%, Due 10/31/2026			500,000			450,098
2.000%, Due 11/15/2026			500,000			456,504
1.750%, Due 12/31/2026			650,000			586,727
1.500%, Due 1/31/2027			610,000			543,424
2.875%, Due 5/15/2028			200,000			186,086
2.875%, Due 8/15/2028			100,000			92,840
2.625%, Due 2/15/2029			450,000			409,711
2.375%, Due 5/15/2029			450,000			402,627
1.625%, Due 8/15/2029			350,000			298,170
1.750%, Due 11/15/2029			1,700,000			1,459,144
1.500%, Due 2/15/2030			655,000			548,409

						11,314,106


Total U.S. Treasury Obligations (Cost $15,990,275)						14,342,004


	Shares


SHORT-TERM INVESTMENTS - 2.87% (Cost $3,684,483)

Investment Companies - 2.87%
American Beacon U.S. Government Money Market Select Fund, 2.89%^{G H}			3,684,483			3,684,483



SECURITIES LENDING COLLATERAL - 0.44% (Cost $570,161)

Investment Companies - 0.44%
American Beacon U.S. Government Money Market Select Fund, 2.89%^{G H}			570,161			570,161


TOTAL INVESTMENTS - 100.57% (Cost $123,199,062)						129,214,011
LIABILITIES, NET OF OTHER ASSETS - (0.57%)						(734,747	)

TOTAL NET ASSETS - 100.00%					$	128,479,264


Percentages are stated as a percent of net assets.

^A Non-income producing security.

^B All or a portion of this security is on loan, collateralized by either cash and/or U.S. Treasuries, at October 31, 2022 (Note 9).

^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 $1,976,724 or 1.54% of net assets. The Fund has no right to demand registration of these securities.

^D 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, SOFR, LIBOR or PRIME plus a fixed spread. The interest rate disclosed reflects the rate in effect on October 31, 2022.

^E Perpetual maturity. The date shown, if any, is the next call date.

^F 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.

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

^H 7-day yield.

See accompanying notes

American Beacon Balanced Fund^SM

Schedule of Investments

October 31, 2022

ADR - American Depositary Receipt.

CMT - Constant Maturity Treasury.

DAC - Designated Activity Company.

LIBOR - London Interbank Offered Rate.

LLC - Limited Liability Company.

LP - Limited Partnership.

PLC - Public Limited Company.

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

SOFR - Secured Overnight Financing Rate.


*Long Futures Contracts Open on October 31, 2022:*

Equity Futures Contracts
Description	Number of Contracts	Expiration Date	Notional Amount		Contract Value		Unrealized Appreciation (Depreciation)
CME e-Mini Standard & Poor’s 500 Index Futures	18	December 2022	$	3,342,858	$	3,494,700	$	151,842

			$	3,342,858	$	3,494,700	$	151,842


Index Abbreviations:
CME		Chicago Mercantile Exchange.

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of October 31, 2022, the investments were classified as described below:


Balanced Fund	Level 1		Level 2		Level 3		Total
*Assets*
Common Stocks	$	76,912,704	$	-	$	-	$	76,912,704
Corporate Obligations		-		18,100,290		-		18,100,290
Foreign Corporate Obligations		-		3,744,290		-		3,744,290
Foreign Sovereign Obligations		-		47,630		-		47,630
Asset-Backed Obligations		-		2,354,217		-		2,354,217
Commercial Mortgage-Backed Obligations		-		242,572		-		242,572
U.S. Agency Mortgage-Backed Obligations		-		9,215,660		-		9,215,660
U.S. Treasury Obligations		-		14,342,004		-		14,342,004
Short-Term Investments		3,684,483		-		-		3,684,483
Securities Lending Collateral		570,161		-		-		570,161

Total Investments in Securities - Assets	$	81,167,348	$	48,046,663	$	-	$	129,214,011


*Financial Derivative Instruments - Assets*
Futures Contracts	$	151,842	$	-	$	-	$	151,842

Total Financial Derivative Instruments - Assets	$	151,842	$	-	$	-	$	151,842

U.S. GAAP requires transfers between all levels to/from level 3 be disclosed. During the year ended October 31, 2022, there were no transfers into or out of Level 3.

See accompanying notes

American Beacon Balanced Fund^SM

Statement of Assets and Liabilities

October 31, 2022


Assets:
Investments in unaffiliated securities, at fair value^†^§	$	124,959,367
Investments in affiliated securities, at fair value^‡		4,254,644
Cash		31
Cash collateral held at broker for futures contracts		220,000
Dividends and interest receivable		386,226
Receivable for investments sold		162,872
Receivable for fund shares sold		16,792
Receivable for tax reclaims		2,182
Receivable for variation margin on open futures contracts (Note 5)		151,848
Prepaid expenses		39,274

Total assets		130,193,236

Liabilities:
Payable for investments purchased		311,980
Payable for fund shares redeemed		422,900
Cash due to broker for futures contracts		177,308
Management and sub-advisory fees payable (Note 2)		106,587
Service fees payable (Note 2)		16,347
Transfer agent fees payable (Note 2)		9,169
Payable upon return of securities loaned (Note 9)^§		570,161
Custody and fund accounting fees payable		12,791
Professional fees payable		70,802
Trustee fees payable (Note 2)		771
Payable for prospectus and shareholder reports		7,220
Other liabilities		7,936

Total liabilities		1,713,972

Net assets	$	128,479,264

Analysis of net assets:
Paid-in-capital	$	110,530,299
Total distributable earnings (deficits)^A		17,948,965

Net assets	$	128,479,264

Shares outstanding at no par value (unlimited shares authorized):
R5 Class		922,378

Y Class		2,131,920

Investor Class		4,639,678

Advisor Class		87,403

A Class		1,153,358

C Class		1,362,987

Net assets:
R5 Class	$	12,977,305

Y Class	$	30,273,662

Investor Class	$	54,447,528

Advisor Class	$	1,124,266

A Class	$	13,482,666

C Class	$	16,173,837

Net asset value, offering and redemption price per share:
R5 Class	$	14.07

Y Class	$	14.20

Investor Class	$	11.74

Advisor Class	$	12.86

A Class	$	11.69

A Class (offering price)	$	12.40

C Class	$	11.87


^† Cost of investments in unaffiliated securities	$	118,944,418
^‡ Cost of investments in affiliated securities	$	4,254,644
^§ Fair value of securities on loan	$	1,183,054

^A The Fund’s investments in affiliated securities did not have unrealized appreciation (depreciation) at year end.

See accompanying notes

American Beacon Balanced Fund^SM

Statement of Operations

For the year ended October 31, 2022


Investment income:
Dividend income from unaffiliated securities (net of foreign taxes)^†	$	1,920,255
Dividend income from affiliated securities (Note 2)		31,815
Interest income (net of foreign taxes)^†		1,624,851
Income derived from securities lending (Note 9)		2,877

Total investment income		3,579,798

Expenses:
Management and sub-advisory fees (Note 2)		823,036
Transfer agent fees:
R5 Class (Note 2)		4,109
Y Class (Note 2)		39,913
Investor Class		20,572
Advisor Class		232
A Class		801
C Class		1,193
Custody and fund accounting fees		57,949
Professional fees		82,450
Registration fees and expenses		84,973
Service fees (Note 2):
Investor Class		206,334
Advisor Class		3,381
A Class		11,322
C Class		15,253
Distribution fees (Note 2):
Advisor Class		3,698
A Class		33,707
C Class		195,818
Prospectus and shareholder report expenses		23,140
Trustee fees (Note 2)		12,866
Loan expense (Note 10)		1,687
Other expenses		26,254

Total expenses		1,648,688

Net investment income		1,931,110


Realized and unrealized gain (loss) from investments:
Net realized gain (loss) from:
Investments in unaffiliated securities^A		13,652,401
Commission recapture (Note 1)		12
Foreign currency transactions		(368	)
Futures contracts		(717,500	)
Change in net unrealized (depreciation) of:
Investments in unaffiliated securities^B		(30,964,378	)
Futures contracts		(20,782	)

Net (loss) from investments		(18,050,615	)

Net (decrease) in net assets resulting from operations	$	(16,119,505	)


^† Foreign taxes	$	10,289

^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 year end.

See accompanying notes

American Beacon Balanced Fund^SM

Statement of Changes in Net Assets


	Year Ended October 31, 2022			Year Ended October 31, 2021
Increase (decrease) in net assets:
Operations:
Net investment income	$	1,931,110		$	1,975,674
Net realized gain from investments in unaffiliated securities, commission recapture, foreign currency transactions, and futures contracts		12,934,545			14,551,895
Change in net unrealized appreciation (depreciation) of investments in unaffiliated securities and futures contracts		(30,985,160	)		36,525,055

Net increase (decrease) in net assets resulting from operations		(16,119,505	)		53,052,624

Distributions to shareholders:
Total retained earnings:
R5 Class		(1,823,210	)		(2,868,929	)
Y Class		(3,321,953	)		(5,530,045	)
Investor Class		(7,892,846	)		(10,889,450	)
Advisor Class		(149,432	)		(246,705	)
A Class		(1,361,049	)		(1,705,799	)
C Class		(1,993,250	)		(3,318,336	)

Net distributions to shareholders		(16,541,740	)		(24,559,264	)


Capital share transactions (Note 11):
Proceeds from sales of shares		29,778,307			41,247,243
Reinvestment of dividends and distributions		15,879,719			23,515,594
Cost of shares redeemed		(73,095,956	)		(77,566,519	)

Net (decrease) in net assets from capital share transactions		(27,437,930	)		(12,803,682	)

Net increase (decrease) in net assets		(60,099,175	)		15,689,678

Net assets:
Beginning of year		188,578,439			172,888,761

End of year	$	128,479,264		$	188,578,439

See accompanying notes

American Beacon Balanced Fund^SM

Notes to Financial Statements

October 31, 2022

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 October 31, 2022, the Trust consists of twenty-five active series, one of which is presented in this filing: American Beacon Balanced Fund (the “Fund”). The remaining twenty-four 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 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, which provides optional expedients and exceptions for contracts, hedging relationships and other transactions affected by the transitioning away from the London Interbank Offered Rate (“LIBOR”) and other reference rates that are expected to be discontinued. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. Management has evaluated the implications of these changes, and has determined that there is no impact to the financial statements.

In October 2020, the U.S. Securities and Exchange Commission (“SEC”) adopted new regulations governing the use of derivatives by registered investment companies. Rule 18f-4 imposes limits on the amount of derivatives the fund can enter into, eliminated the asset segregation framework used by funds to comply with Section 18 of the Act, and requires funds whose use of derivatives is more than a limited specified exposure to establish and maintain a derivatives risk management program and appoint a derivatives risk manager. While the new rule became effective February 19, 2021, funds were not required to fully comply with the new rule until August 19, 2022. Management has evaluated the implications of these changes, and has determined that there is no impact to the financial statements.

On December 3, 2020, the SEC adopted new rule 2a-5 (Valuation Rule) under the Investment Company Act of 1940, establishing an updated regulatory framework for fund valuation. The Valuation Rule, in part, provides a framework for good faith fair value determination and permits a Board to designate fair value determinations to the fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Valuation Rule became effective on March 8, 2021, with a compliance date of September 8, 2022. Management has evaluated the Valuation Rule, and has determined that there is no impact to the financial statements.

American Beacon Balanced Fund^SM

Notes to Financial Statements

October 31, 2022

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
R5 Class	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 Class	All investors using intermediary organizations, such as broker-dealers or retirement plan sponsors.	$	2,500

Advisor Class	All investors who invest through intermediary organizations, such as broker-dealers or third party administrators.	$	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

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. Tax reclaim accruals are automatically generated on accounting and custody systems at the time of the income event based on the tax databases maintained by the Fund’s custodian. Reconciliations are performed between custody and accounting systems to help ensure reclaim accruals are in line. 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. For convertible securities, premiums attributable to the conversion feature are not amortized. Realized gains (losses) from securities sold are determined on the basis of specific lot identification. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the

American Beacon Balanced Fund^SM

Notes to Financial Statements

October 31, 2022

Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on a non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed for non-accrual when the issuer resumes interest payments or when collectability of interest is probable. Realized gains (losses) from securities sold are determined on the basis of 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 quarterly basis and distributions of realized net capital gains and net gains or losses 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.

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 (loss) in the Fund’s Statement of Operations, if applicable.

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.

American Beacon Balanced Fund^SM

Notes to Financial Statements

October 31, 2022

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 $15 billion	0.35	%
Next $15 billion	0.325	%
Over $30 billion	0.30	%

The Trust, on behalf of the Fund, and the Manager have entered into Investment Advisory Agreements with Barrow, Hanley, Mewhinney & Strauss, LLC and Hotchkis and Wiley Capital 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.

The Management and Sub-Advisory Fees paid by the Fund for the year ended October 31, 2022 were as follows:


	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.35	%	$	557,973
Sub-Advisor Fees		0.17	%		265,063

Total		0.52	%	$	823,036

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 of 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 of 10% of such loan fees. 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. These fees are included in “Income derived from securities lending” and “Management and sub-advisory fees” on the Statement of Operations. During the year ended October 31, 2022, the Manager received securities lending fees of $355 for the securities lending activities of the Fund.

Distribution Plans

Separate Distribution Plans (the “Distribution Plans”) have been adopted pursuant to Rule 12b-1 under the Act for the Advisor, 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 Advisor and A Classes 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, Advisor, 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, up to 0.25% of the average daily net assets of the Advisor Class, and up to 0.375% of the average daily net assets of the Investor Class of the Fund.

American Beacon Balanced Fund^SM

Notes to Financial Statements

October 31, 2022

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 R5 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 R5 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 R5 and Y Classes on an annual basis. During the year ended October 31, 2022, the sub-transfer agent fees, as reflected in “Transfer agent fees” on the Statement of Operations, were as follows:


Fund	Sub-Transfer Agent Fees
Balanced	$	41,225

As of October 31, 2022, 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
Balanced	$	4,592

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 listed below held the following shares with an October 31, 2022 fair value and dividend income earned from the investment in the USG Select Fund.


Affiliated Security	Type of Transaction	Fund		October 31, 2022 Shares/Principal		Change in Unrealized Gain (Loss)		Realized Gain (Loss)		Dividend Income		October 31, 2022 Fair Value
U.S. Government Money Market Select	Direct		Balanced	$	3,684,483	$	-	$	-	$	31,815	$	3,684,483
U.S. Government Money Market Select	Securities Lending		Balanced		570,161		-		-		N/A		570,161

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 year ended October 31, 2022, the Manager earned fees on the Fund’s direct investments and 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
Balanced	$	4,283	$	485	$	4,768

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,

American Beacon Balanced Fund^SM

Notes to Financial Statements

October 31, 2022

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 the fund. When the 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 year ended October 31, 2022, the Fund borrowed on average $2,569,188 for 6 days at an average interest rate of 2.22% with interest charges of $766. These amounts are recorded as “Other expenses” in the Statement of Operations.

Expense Reimbursement Plan

The Fund has adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of such fee or voluntary 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 from the date of the Manager’s waiver/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. During the year ended October 31, 2022 there were no waived fees, expenses reimbursed, or recouped expenses.

Sales Commissions

The Fund’s Distributor, Resolute Investment Distributors, Inc. (“RID” or “Distributor”), may receive a portion of A Class sales charges from broker dealers which may be used to offset distribution related expenses. During the year ended October 31, 2022, RID collected $5,051 from the sale of A Class Shares of the Fund.

A CDSC of 0.50% will be deducted with respect to A Class 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 A Class Shares redeemed. During the year ended October 31, 2022, there were no CDSC fees collected for the A Class Shares of the Fund.

A CDSC of 1.00% will be deducted with respect to C Class 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 C Class Shares redeemed. During the year ended October 31, 2022, CDSC fees of $862 were collected for C Class Shares of the Fund.

Trustee Fees and Expenses

As compensation for their service to the American Beacon Funds Complex, including the Trust (collectively, the “Trusts”), each Trustee is compensated from the Trusts as follows: (1) an annual retainer of $130,000; (2) meeting attendance fee (for attendance in-person or via teleconference) of (a) $12,000 for in person attendance, or $5,000 for telephonic attendance, by Board members for each regularly scheduled or special Board meeting, (b) $2,500 for attendance by Committee members at meetings of the Audit and Compliance Committee and the Investment Committee, (c) $1,000 for attendance by Committee members at meetings of the Nominating and Governance Committee; and (d) $2,500 for attendance by Board members for each special telephonic Board meeting; and (3) reimbursement of reasonable expenses incurred in attending Board meetings, Committee meetings, and relevant educational seminars. For this purpose, the Board considers attendance at regular meetings held by video conference to constitute in-person attendance at a Board meeting. The Trustees also may be

American Beacon Balanced Fund^SM

Notes to Financial Statements

October 31, 2022

compensated for attendance at special Board and/or Committee meetings from time to time. For her service as Board Chair, Ms. Cline receives an additional annual retainer of $50,000. Although she attends several committee meetings at each quarterly Board meeting, she receives only a single $2,500 fee each quarter for her attendance at those meetings. The chairpersons of the Audit and Compliance Committee and the Investment Committee each receive an additional annual retainer of $25,000 and the Chair of the Nominating and Governance Committee receives an additional annual retainer of $10,000.

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.

The Valuation Rule establishes requirements for determining fair value in good faith for purposes of the Act, including related oversight and reporting requirements. The Valuation Rule also defines when market quotations are “readily available,” which is the threshold for determining whether a Fund must fair value a security. Among other things, the Valuation Rule permits the Board to designate the Manager as “valuation designee” to perform the Fund’s fair value determinations subject to board oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee the Manager’s fair value determinations. Effective September 8, 2022, the Board has designated the Manager as valuation designee to perform fair value functions in accordance with the requirements of the Valuation Rule. Prior to September 8, 2022, fair value determinations were made pursuant to methodologies approved by the Board.

Securities may be valued at fair value, as determined in good faith and pursuant to the Manager’s procedures approved by the Board, under certain limited circumstances. For example, fair value pricing will be used for fixed-income securities and 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

American Beacon Balanced Fund^SM

Notes to Financial Statements

October 31, 2022

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 of the Fund’s 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 Manager, 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 Manager’s Valuation Committee, 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.