N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-4984

AMERICAN BEACON FUNDS

(Exact name of registrant as specified in charter)

220 East Las Colinas Boulevard, Suite 1200

Irving, Texas 75039

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

GENE L. NEEDLES, JR., PRESIDENT

220 East Las Colinas Boulevard, Suite 1200

Irving, Texas 75039

(Name and address of agent for service)

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

Date of fiscal year end: October 31, 2018

Date of reporting period: April 30, 2018

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

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

ITEM 1. REPORTS TO STOCKHOLDERS.

About American Beacon Advisors

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

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

LARGE CAP VALUE FUND 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. Investing in foreign securities may involve heightened risk due to currency fluctuations and economic and political risks. 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 the 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 April 30, 2018

Contents

President’s Message	1
Performance Overview	2
Expense Examples	4
Schedule of Investments:
American Beacon Large Cap Value Fund	6
Financial Statements	14
Notes to Financial Statements	18
Financial Highlights:
American Beacon Large Cap Value Fund	35

  Additional Fund Information Back Cover

President’s Message

Dear Shareholders,   Since 1986, American Beacon has endeavored to provide investors with a disciplined approach to realizing long-term investment goals: Institutional wisdom + earned alpha = enduring value.   u  We believe institutional wisdom comes from having more than 30 years of experience as manager of one of the country’s largest pension plans. As a fiduciary, we have built an investment due-diligence and oversight infrastructure, which we leverage across all our investment products. When selecting our investment managers, we focus on their people, processes and performance. We perform due-diligence reviews with each investment manager on a quarterly basis.   u  We believe earned alpha – that is, the returns of an actively managed fund beyond a benchmark – comes from employing and engaging

investment managers we believe are best-in-class and who have defined, repeatable and proven processes. Our experience has shown us that, while it’s important to be mindful of short-term considerations, having a long-term focus helps manage expectations, mitigate risks and realize goals. Thus, we seek relationships with leading investment managers who display a willingness to undertake time-intensive research strategies. The resulting investment portfolios are differentiated from their peers and allow incremental changes to help address periods of market volatility and economic uncertainty.

u We believe enduring value comes from “putting a portfolio in place and sticking with the plan.” Our mutual funds provide you with access to institutional-quality, research-intensive investment managers with diverse processes and styles. In the long run, having such access and spending time in the market – rather than trying to time the market – may better position you to reach your long-term investment goals.

The markets and U.S. economy were robust during calendar year 2017. However, during periods of market volatility and economic uncertainty – such as what we’ve seen thus far in 2018 – investing for the long term requires conviction. It isn’t about identifying and anticipating the next big market move. It’s about identifying the right investment products for riding out those moves. It’s about developing an approach based on long-term participation, while seeking some measure of protection against ongoing volatility.

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. Many of the sub-advisors to our mutual funds pursue upside capture and/or downside protection using proprietary strategies. 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 high quality and lower risk.

At American Beacon, our approach is more than a concept. It’s the cornerstone of our culture. And we strive to apply it at every turn as we seek to provide a well-diversified line of investment products for your portfolio.

Thank you for your continued interest in 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,

Gene L. Needles, Jr. President

American Beacon Funds

1

American Beacon Large Cap Value Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

The Investor Class of the American Beacon Large Cap Value Fund (the “Fund”) returned 2.14% for the six months ended April 30, 2018, outperforming the Russell 1000^® Value Index (the “Index”) return of 1.94% for the same period.

Total Returns for the Period ended April 30, 2018
	Ticker	6 Months*			1 Year			3 Years			5 Years			10 Years
Institutional Class (1,7)	AADEX		2.29	%		10.57	%		6.82	%		10.30	%		7.33	%
Y Class (1,2,7)	ABLYX		2.29	%		10.55	%		6.75	%		10.22	%		7.26	%
Investor Class (1,7)	AAGPX		2.14	%		10.22	%		6.47	%		9.93	%		6.97	%
Advisor Class (1,7)	AVASX		2.05	%		10.07	%		6.32	%		9.77	%		6.81	%
R6 Class (1,5,7)	AALRX		2.33	%		10.65	%		6.83	%		10.30	%		7.34	%
A without Sales Charge (1,3,7)	ALVAX		2.16	%		10.21	%		6.43	%		9.85	%		6.89	%
A with Sales Charge (1,3,7)	ALVAX		(3.70	)%		3.86	%		4.35	%		8.56	%		6.26	%
C without Sales Charge (1,4,7)	ALVCX		1.86	%		9.53	%		5.67	%		9.05	%		6.27	%
C with Sales Charge (1,4,7)	ALVCX		0.86	%		8.53	%		5.67	%		9.05	%		6.27	%
Russell 1000 Value Index (6)			1.94	%		7.50	%		7.66	%		10.52	%		7.30	%

* Not Annualized.

1. Performance shown is historical and is not indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is calculated based on the published end of day net asset values as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please 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.

2. Fund performance for the ten-year period represents the total returns achieved by the Institutional Class from 4/30/08 up to 8/3/09, the inception date of the Y Class, and the returns of the Y Class since its inception. Expenses of the Y Class are higher than those of the Institutional Class. As a result, total returns shown may be higher than they would have been had the Y Class been in existence since 4/30/08.

3. Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/08 through 5/17/10, the inception date of the A Class, and the returns of the A Class since its inception. Expenses of the A Class are higher than those of the Investor Class. As a result, total returns shown may be higher than they would have been had the A Class been in existence since 4/30/08. A Class shares have a maximum sales charge of 5.75%.

4. Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/08 through 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the C Class are higher than those of the Investor Class. As a result, total returns shown may be higher than they would have been had the C Class been in existence since 4/30/08. A portion of the fees charged to the C Class was waived from 2010 through 2012, partially recovered in 2013, and fully recovered in 2014. Performance prior to waiving fees was lower than the actual returns shown from 2010 through 2012. C Class shares have a maximum contingent deferred sales charge of 1.00% for shares redeemed within one year of the date of purchase.

5. Fund performance for the three-year, five-year and ten-year periods represents the returns achieved by the Institutional Class from 4/30/08 through 2/28/17, the inception date of the R6 Class, and the returns of the R6 Class since its inception. Expenses of the R6 Class are lower than those of the Institutional Class. As a result, total returns shown may be lower than they would have been had the R6 Class been in existence since 4/30/08. A portion of the fees charged to the R6 Class of the Fund has been waived since 2/28/17. Performance prior to waiving fees was lower than the actual returns shown.

6. 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 Russell 1000 Index are registered trademarks of Frank Russell Company. Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data, and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. One cannot directly invest in an index.

7. The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, A, C and R6 Class shares were 0.60%, 0.67%, 0.92%, 1.07%, 0.98%, 1.72%, and 0.60%, 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.

2

American Beacon Large Cap Value Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

The Fund outperformed the Index due to sector allocation, whereas stock selection detracted value relative to the Index for the six-month period.

Sector allocation helped as an overweight to Energy – the best performing sector in the Index – and an underweight in Utilities – up 10.6% and down 4.2%, respectively, added relative performance compared to the Index. The Fund’s overweight position in Industrials – down 4.5% somewhat muted relative outperformance from sector allocation.

The Fund’s investments in the Financials and Consumer Staples sectors contributed most of the stock selection underperformance. In the Financials sector, American International Group – down 12.4% and Citigroup, Inc. – down 6.4% were the largest negative contributors. Positions in CVS Health Corp. – down 9.1% and Altria Group, Inc. – down 10.8% hurt the Fund’s returns in the Consumer Staples sector. Stock selections in the Energy sector partially offset relative performance. In this sector, BP PLC, Sponsored ADR – up 12.5% and ConocoPhillips – up 28.3% helped the Fund’s returns.

The sub-advisors continue to invest in a broadly diversified portfolio of companies that they believe have attractive valuations and above-average earnings growth potential. This approach should allow the Fund to benefit over the longer term.

Top Ten Holdings (% Net Assets)
Citigroup, Inc.		3.3
JPMorgan Chase & Co.		3.3
Bank of America Corp.		2.6
Wells Fargo & Co.		2.5
BP PLC, Sponsored ADR		2.2
American International Group, Inc.		2.0
ConocoPhillips		2.0
Microsoft Corp.		1.9
Comcast Corp., Class A		1.8
Oracle Corp.		1.7
Total Fund Holdings	200
Sector Allocation (% Equities)
Financials		27.4
Energy		15.6
Health Care		11.7
Consumer Discretionary		11.3
Industrials		10.5
Information Technology		10.1
Consumer Staples		6.3
Materials		3.9
Telecommunication Services		1.7
Utilities		1.4
Real Estate		0.1

3

American Beacon Large Cap Value Fund^SM

Expense Examples

April 30, 2018 (Unaudited)

Fund Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees, if applicable, and (2) ongoing costs, including management fees, distribution (12b-1) fees, sub-transfer agent fees, and other Fund expenses. The Examples are intended to help you understand the ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from November 1, 2017 through April 30, 2018.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

4

American Beacon Large Cap Value Fund^SM

Expense Examples

April 30, 2018 (Unaudited)

American Beacon Large Cap Value Fund
	Beginning Account Value 11/1/2017		Ending Account Value 4/30/2018		Expenses Paid During Period 11/1/2017-4/30/2018*
Institutional Class
Actual		$1,000.00		$1,023.30		$2.96
Hypothetical**		$1,000.00		$1,021.90		$2.96
Y Class
Actual		$1,000.00		$1,022.90		$3.21
Hypothetical**		$1,000.00		$1,021.60		$3.21
Investor Class
Actual		$1,000.00		$1,021.40		$4.61
Hypothetical**		$1,000.00		$1,020.20		$4.61
Advisor Class
Actual		$1,000.00		$1,020.50		$5.36
Hypothetical**		$1,000.00		$1,019.50		$5.36
A Class
Actual		$1,000.00		$1,021.60		$4.31
Hypothetical**		$1,000.00		$1,020.50		$4.31
C Class
Actual		$1,000.00		$1,018.60		$7.16
Hypothetical**		$1,000.00		$1,017.70		$7.15
R6 Class
Actual		$1,000.00		$1,023.30		$2.86
Hypothetical**		$1,000.00		$1,022.00		$2.86

* Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.59%, 0.64%, 0.92%, 1.07%, 0.86%, 1.43%, and 0.57% for the Institutional, Y, Investor, Advisor, A, C and R6 Classes, respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half-year period.

** 5% return before expenses.

5

American Beacon Large Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 97.20%
Consumer Discretionary - 11.02%
Auto Components - 1.74%
Adient PLC		177,998		$	10,909,498
Aptiv PLC		120,797			10,217,010
Goodyear Tire & Rubber Co.		1,636,709			41,097,763
Magna International, Inc.		937,641			55,320,819
					117,545,090
Automobiles - 1.73%
General Motors Co.		2,790,905			102,537,850
Harley-Davidson, Inc.		355,118			14,606,003
					117,143,853
Hotels, Restaurants & Leisure - 0.54%
Carnival Corp.		152,100			9,591,426
Norwegian Cruise Line Holdings Ltd.A		501,700			26,825,899
					36,417,325
Household Durables - 0.71%
DR Horton, Inc.		634,300			27,998,002
Newell Brands, Inc.		131,153			3,623,757
Tupperware Brands Corp.		370,600			16,513,936
					48,135,695
Leisure Products - 0.04%
Hasbro, Inc.		28,400			2,501,756
Media - 3.91%
CBS Corp., Class B, NVDR		406,003			19,975,348
Cinemark Holdings, Inc.		346,900			13,588,073
Comcast Corp., Class A		3,881,947			121,854,316
Discovery, Inc., Class AA B		912,501			21,580,649
Discovery, Inc., Class CA		1,288,700			28,634,914
Interpublic Group of Cos, Inc.		807,700			19,053,643
Omnicom Group, Inc.		334,566			24,644,131
Time Warner, Inc.		24,936			2,363,933
Walt Disney Co.		133,400			13,384,022
					265,079,029
Multiline Retail - 0.88%
Dollar General Corp.		619,456			59,796,088
Specialty Retail - 1.21%
Advance Auto Parts, Inc.		209,200			23,942,940
Bed Bath & Beyond, Inc.		296,106			5,170,011
Dick’s Sporting Goods, Inc.		454,400			15,036,096
Lowe’s Cos, Inc.		455,900			37,579,837
					81,728,884
Textiles, Apparel & Luxury Goods - 0.26%
Hanesbrands, Inc.		969,286			17,902,712
Total Consumer Discretionary					746,250,432
Consumer Staples - 6.07%
Beverages - 1.00%
Diageo PLC, Sponsored ADR		110,749			15,721,928
Molson Coors Brewing Co., Class B		345,200			24,592,048
PepsiCo, Inc.		271,066			27,361,402
					67,675,378

See accompanying notes

6

American Beacon Large Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 97.20% (continued)
Consumer Staples - 6.07% (continued)
Food Products - 1.16%
Archer-Daniels-Midland Co.		174,036		$	7,897,754
Danone S.A., Sponsored ADRB		389,098			6,326,733
General Mills, Inc.		320,021			13,997,719
JM Smucker Co.		47,830			5,456,446
Kellogg Co.		133,295			7,851,075
Mondelez International, Inc., Class A		439,100			17,344,450
Nestle S.A., Sponsored ADR		255,702			19,781,107
					78,655,284
Health Care Providers & Services - 0.92%
CVS Health Corp.		892,244			62,305,399
Household Products - 0.22%
Kimberly-Clark Corp.		36,901			3,820,729
Procter & Gamble Co.		71,240			5,153,502
Reckitt Benckiser Group PLC, Sponsored ADR		388,915			6,172,081
					15,146,312
Personal Products - 0.49%
Coty, Inc., Class A		270,344			4,690,468
Unilever PLC, ADR		510,100			28,550,297
					33,240,765
Tobacco - 2.28%
Altria Group, Inc.		862,030			48,368,504
Imperial Brands PLC, Sponsored ADRB		890,614			32,391,631
Philip Morris International, Inc.		893,626			73,277,332
					154,037,467
Total Consumer Staples					411,060,605
Energy - 15.18%
Energy Equipment & Services - 2.14%
Halliburton Co.		531,800			28,180,082
Helmerich & Payne, Inc.		273,500			19,021,925
National Oilwell Varco, Inc.		625,400			24,184,218
Oceaneering International, Inc.		515,500			10,949,220
Schlumberger Ltd.		912,027			62,528,571
					144,864,016
Oil, Gas & Consumable Fuels - 13.04%
Anadarko Petroleum Corp.		423,500			28,510,020
Andeavor		201,000			27,802,320
Apache Corp.		1,455,900			59,619,105
BP PLC, Sponsored ADR		3,316,179			147,868,422
Canadian Natural Resources Ltd.		2,178,003			78,582,348
Chevron Corp.		545,512			68,249,006
ConocoPhillips		2,036,151			133,367,890
Devon Energy Corp.		1,232,766			44,786,389
EOG Resources, Inc.		134,357			15,876,967
Exxon Mobil Corp.		136,069			10,579,365
Hess Corp.		797,792			45,466,166
Kinder Morgan, Inc.		1,490,000			23,571,800
Kosmos Energy Ltd.A		1,247,445			8,782,013
Marathon Oil Corp.		2,740,486			50,013,869
Murphy Oil Corp.		864,760			26,037,923
Occidental Petroleum Corp.		139,476			10,775,916

See accompanying notes

7

American Beacon Large Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 97.20% (continued)
Energy - 15.18% (continued)
Oil, Gas & Consumable Fuels - 13.04% (continued)
Phillips 66		652,758		$	72,658,493
Royal Dutch Shell PLC, Class A, Sponsored ADR		441,222			30,841,418
					883,389,430
Total Energy					1,028,253,446
Financials - 26.68%
Banks - 13.60%
Bank of America Corp.		5,860,398			175,343,108
BNP Paribas S.A., ADR		524,500			20,193,250
CIT Group, Inc.		176,300			9,335,085
Citigroup, Inc.		3,299,591			225,263,078
Citizens Financial Group, Inc.		524,253			21,751,257
JPMorgan Chase & Co.		2,034,384			221,300,291
PNC Financial Services Group, Inc.		364,741			53,109,937
US Bancorp		559,095			28,206,343
Wells Fargo & Co.		3,208,719			166,725,039
					921,227,388
Capital Markets - 4.24%
Bank of New York Mellon Corp.		452,828			24,683,654
BlackRock, Inc.		28,660			14,946,190
Blackstone Group LP, MLP		1,473,648			45,609,406
Franklin Resources, Inc.		112,935			3,799,133
Goldman Sachs Group, Inc.		225,799			53,814,676
KKR & Co. LP		3,525,808			73,830,420
Moody’s Corp.		57,872			9,386,838
Morgan Stanley		173,678			8,965,258
Nasdaq, Inc.		165,941			14,655,909
State Street Corp.		305,946			30,527,292
T Rowe Price Group, Inc.		61,062			6,950,077
					287,168,853
Consumer Finance - 3.07%
Ally Financial, Inc.		485,900			12,681,990
American Express Co.		145,128			14,331,390
Capital One Financial Corp.		437,191			39,618,249
Discover Financial Services		364,100			25,942,125
Navient Corp.		1,180,763			15,656,917
OneMain Holdings, Inc.A		575,200			17,744,920
Santander Consumer USA Holdings, Inc.		1,362,447			25,137,147
SLM Corp.A		3,494,162			40,112,980
Synchrony Financial		494,087			16,388,866
					207,614,584
Diversified Financial Services - 0.70%
Berkshire Hathaway, Inc., Class BA		244,091			47,287,749
Insurance - 4.94%
American International Group, Inc.		2,456,232			137,548,992
Aon PLC		171,193			24,389,867
Chubb Ltd.		177,326			24,057,819
MetLife, Inc.		316,299			15,077,973
Prudential Financial, Inc.		71,331			7,583,912
Travelers Companies, Inc.		392,630			51,670,108
XL Group Ltd.		1,328,412			73,846,423
					334,175,094

See accompanying notes

8

American Beacon Large Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 97.20% (continued)
Financials - 26.68% (continued)
Thrifts & Mortgage Finance - 0.13%
Radian Group, Inc.		627,200		$	8,968,960
Total Financials					1,806,442,628
Health Care - 11.41%
Biotechnology - 1.20%
AbbVie, Inc.		119,184			11,507,215
Biogen, Inc.A		49,400			13,515,840
Celgene Corp.A		158,200			13,779,220
Gilead Sciences, Inc.		254,200			18,360,866
Portola Pharmaceuticals, Inc.A		265,000			9,574,450
Shire PLC, ADR		90,000			14,348,700
					81,086,291
Health Care Equipment & Supplies - 2.83%
Abbott Laboratories		291,906			16,968,496
Danaher Corp.		179,149			17,972,228
Koninklijke Philips N.V.		728,637			30,763,054
Medtronic PLC		1,329,083			106,499,421
Zimmer Biomet Holdings, Inc.		167,867			19,333,242
					191,536,441
Health Care Providers & Services - 1.95%
Anthem, Inc.		437,768			103,308,870
Cigna Corp.		69,507			11,942,693
Express Scripts Holding Co.A		93,068			7,045,248
McKesson Corp.		63,790			9,964,636
					132,261,447
Life Sciences Tools & Services - 0.28%
Thermo Fisher Scientific, Inc.		89,667			18,861,453
Pharmaceuticals - 5.15%
GlaxoSmithKline PLC, Sponsored ADR		743,234			29,811,116
Horizon Pharma PLCA		951,692			12,600,402
Jazz Pharmaceuticals PLCA		83,668			12,720,883
Johnson & Johnson		596,202			75,413,591
Mallinckrodt PLCA B		404,407			5,257,291
Merck & Co., Inc.		901,806			53,089,319
Mylan N.V.A		543,485			21,065,479
Novartis AG, Sponsored ADR		35,734			2,740,440
Pfizer, Inc.		2,351,979			86,105,951
Roche Holding AG, Sponsored ADR		81,702			2,271,316
Sanofi, ADR		1,218,245			47,901,393
					348,977,181
Total Health Care					772,722,813
Industrials - 10.15%
Aerospace & Defense - 1.93%
Embraer S.A., Sponsored ADR		273,900			6,907,758
General Dynamics Corp.		91,774			18,475,024
Lockheed Martin Corp.		26,936			8,642,146
Northrop Grumman Corp.		63,320			20,391,573
Raytheon Co.		208,201			42,668,713
United Technologies Corp.		280,060			33,649,209
					130,734,423

See accompanying notes

9

American Beacon Large Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 97.20% (continued)
Industrials - 10.15% (continued)
Air Freight & Logistics - 0.11%
United Parcel Service, Inc., Class B		67,893		$	7,705,856
Airlines - 1.43%
American Airlines Group, Inc.		629,140			27,008,980
Delta Air Lines, Inc.		722,800			37,744,616
United Continental Holdings, Inc.A		477,600			32,257,104
					97,010,700
Building Products - 1.45%
Johnson Controls International PLC		2,890,082			97,887,077
Construction & Engineering - 0.22%
AECOMA		439,164			15,124,808
Electrical Equipment - 0.38%
Eaton Corp. PLC		340,709			25,563,396
Industrial Conglomerates - 1.96%
3M Co.		75,733			14,721,738
General Electric Co.		4,169,370			58,663,036
Honeywell International, Inc.		411,747			59,571,556
					132,956,330
Machinery - 1.49%
CNH Industrial N.V.		2,718,439			33,300,878
Cummins, Inc.		215,297			34,417,378
Illinois Tool Works, Inc.		76,323			10,839,393
Ingersoll-Rand PLC		83,744			7,025,284
PACCAR, Inc.		130,751			8,324,916
Stanley Black & Decker, Inc.		50,412			7,137,835
					101,045,684
Professional Services - 0.10%
Equifax, Inc.		60,346			6,761,769
Road & Rail - 0.31%
Canadian National Railway Co.		92,436			7,143,454
Union Pacific Corp.		101,507			13,564,381
					20,707,835
Trading Companies & Distributors - 0.54%
AerCap Holdings N.V.A		651,700			33,973,121
HD Supply Holdings, Inc.A		65,123			2,520,911
					36,494,032
Transportation Infrastructure - 0.23%
Macquarie Infrastructure Corp.		410,500			15,557,950
Total Industrials					687,549,860
Information Technology - 9.77%
Communications Equipment - 1.28%
Cisco Systems, Inc.		904,470			40,058,976
Telefonaktiebolaget LM Ericsson, Sponsored ADR		6,166,020			46,553,451
					86,612,427
Electronic Equipment, Instruments & Components - 0.69%
Corning, Inc.		1,413,440			38,191,149
TE Connectivity Ltd.		90,100			8,266,675
					46,457,824

See accompanying notes

10

American Beacon Large Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 97.20% (continued)
Information Technology - 9.77% (continued)
IT Services - 1.70%
Accenture PLC, Class A		243,219		$	36,774,713
Amdocs Ltd.		49,156			3,305,741
Cognizant Technology Solutions Corp., Class A		53,935			4,412,962
DXC Technology Co.		69,335			7,145,665
Fidelity National Information Services, Inc.		142,319			13,516,035
First Data Corp., Class AA		1,510,000			27,331,000
Fiserv, Inc.A		144,410			10,232,893
International Business Machines Corp.		24,755			3,588,485
Teradata Corp.A		220,794			9,034,890
					115,342,384
Semiconductors & Semiconductor Equipment - 1.40%
Analog Devices, Inc.		58,360			5,097,746
Micron Technology, Inc.A		886,179			40,746,510
QUALCOMM, Inc.		473,264			24,141,197
Texas Instruments, Inc.		185,109			18,775,606
Versum Materials, Inc.		161,874			5,694,727
					94,455,786
Software - 3.55%
Microsoft Corp.		1,360,784			127,260,520
Oracle Corp.		2,482,822			113,390,481
					240,651,001
Technology Hardware, Storage & Peripherals - 1.15%
Hewlett Packard Enterprise Co.		4,572,244			77,956,760
Total Information Technology					661,476,182
Materials - 3.81%
Chemicals - 2.70%
Air Products & Chemicals, Inc.		363,939			59,063,660
DowDuPont, Inc.		1,134,151			71,723,709
Eastman Chemical Co.		173,926			17,754,366
PPG Industries, Inc.		223,479			23,661,957
Sherwin-Williams Co.		28,833			10,600,741
					182,804,433
Containers & Packaging - 0.74%
Crown Holdings, Inc.A		597,883			29,798,489
International Paper Co.		394,986			20,365,478
					50,163,967
Metals & Mining - 0.37%
Reliance Steel & Aluminum Co.		285,675			25,116,546
Total Materials					258,084,946
Real Estate - 0.07%
Equity Real Estate Investment Trusts (REITs) - 0.07%
Public Storage, REIT		23,729			4,788,038
Telecommunication Services - 1.68%
Diversified Telecommunication Services - 1.04%
AT&T, Inc.		1,175,986			38,454,742
Verizon Communications, Inc.		645,041			31,832,774
					70,287,516

See accompanying notes

11

American Beacon Large Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 97.20% (continued)
Telecommunication Services - 1.68% (continued)
Wireless Telecommunication Services - 0.64%
Vodafone Group PLC, Sponsored ADR		1,485,950		$	43,701,789
Total Telecommunication Services					113,989,305
Utilities - 1.36%
Electric Utilities - 1.36%
Duke Energy Corp.		269,075			21,569,052
Entergy Corp.		247,093			20,160,318
PPL Corp.		597,354			17,383,001
Southern Co.		600,483			27,694,276
Xcel Energy, Inc.		114,628			5,369,176
					92,175,823
Total Utilities					92,175,823
Total Common Stocks (Cost $5,016,929,222)					6,582,794,078
SHORT-TERM INVESTMENTS - 2.79% (Cost $188,687,948)
Investment Companies - 2.79%
American Beacon U.S. Government Money Market Select Fund, Select Class, 1.61%C D		188,687,948			188,687,948
SECURITIES LENDING COLLATERAL - 0.42% (Cost $28,813,730)
Investment Companies - 0.42%
American Beacon U.S. Government Money Market Select Fund, Select Class, 1.61%C D		28,813,730			28,813,730
TOTAL INVESTMENTS - 100.41% (Cost $5,234,430,900)					6,800,295,756
LIABILITIES, NET OF OTHER ASSETS - (0.41%)					(28,070,614	)
TOTAL NET ASSETS - 100.00%				$	6,772,225,142
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 at April 30, 2018.

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

^D 7-day yield.

ADR - American Depositary Receipt.

LP - Limited Partnership.

MLP - Master Limited Partnership.

NVDR - Non Voting Depositary Receipt.

PLC - Public Limited Company.

Futures Contracts Open on April 30, 2018:
Long Futures
Equity Futures Contracts
Description	Number of Contracts	Expiration Date	Notional Amount		Contract Value		Unrealized Appreciation (Depreciation)
S&P 500 E-Mini Index Futures	1,304	June 2018	$	173,786,843	$	172,584,400	$	(1,202,443	)
			$	173,786,843	$	172,584,400	$	(1,202,443	)

Index Abbreviations:
S&P 500	Standard & Poor’s U.S. Equity Large-Cap Index

See accompanying notes

12

American Beacon Large Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of April 30, 2018, the investments were classified as described below:

Large Cap Value Fund	Level 1			Level 2		Level 3		Total
Assets
Common Stocks	$	6,582,794,078		$	-	$	-	$	6,582,794,078
Short-Term Investments		188,687,948			-		-		188,687,948
Securities Lending Collateral		28,813,730			-		-		28,813,730
Total Investments in Securities - Assets	$	6,800,295,756		$	-	$	-	$	6,800,295,756
Financial Derivative Instruments - Liabilities
Futures Contracts	$	(1,202,443	)	$	-	$	-	$	(1,202,443	)
Total Financial Derivative Instruments - Liabilities	$	(1,202,443	)	$	-	$	-	$	(1,202,443	)

U.S. GAAP requires all transfers between any levels to be disclosed. The end of period timing recognition has been adopted for the transfers between levels of the Fund’s assets and liabilities. During the period ended April 30, 2018, there were no transfers between levels.

See accompanying notes

13

American Beacon Large Cap Value Fund^SM

Statement of Assets and Liabilities

April 30, 2018 (Unaudited)

Assets:
Investments in unaffiliated securities, at fair value†§	$	6,582,794,078
Investments in affiliated securities, at fair value‡		217,501,678
Deposit with brokers for futures contracts		7,206,444
Dividends and interest receivable		6,960,783
Receivable for investments sold		1,371,912
Receivable for fund shares sold		8,575,205
Receivable for tax reclaims		554,847
Prepaid expenses		98,132
Total assets		6,825,063,079
Liabilities:
Payable for investments purchased		4,768,195
Payable for fund shares redeemed		12,050,909
Payable for variation margin from open futures contracts (Note 5)		1,199,628
Payable upon return of securities loaned (Note 9)§		28,813,730
Management and sub-advisory fees payable (Note 2)		4,967,429
Service fees payable (Note 2)		343,428
Transfer agent fees payable (Note 2)		136,276
Custody and fund accounting fees payable		287,800
Professional fees payable		50,595
Trustee fees payable (Note 2)		13,138
Payable for prospectus and shareholder reports		144,265
Other liabilities		62,544
Total liabilities		52,837,937
Net assets	$	6,772,225,142
Analysis of net assets:
Paid-in-capital	$	5,147,687,373
Undistributed net investment income		42,443,332
Accumulated net realized gain		17,432,024
Unrealized appreciation of investments in unaffiliated securitiesA		1,565,864,856
Unrealized (depreciation) of futures contracts		(1,202,443	)
Net assets	$	6,772,225,142

See accompanying notes

14

American Beacon Large Cap Value Fund^SM

Statement of Assets and Liabilities

April 30, 2018 (Unaudited)

Shares outstanding at no par value (unlimited shares authorized):
Institutional Class		149,318,274
Y Class		12,717,249
Investor Class		62,168,591
Advisor Class		2,939,891
A Class		1,600,619
C Class		292,141
R6 Class		12,417,541
Net assets:
Institutional Class	$	4,275,815,368
Y Class	$	361,638,318
Investor Class	$	1,652,573,807
Advisor Class	$	77,089,742
A Class	$	42,025,877
C Class	$	7,607,431
R6 Class	$	355,474,599
Net asset value, offering and redemption price per share:
Institutional Class	$	28.64
Y Class	$	28.44
Investor Class	$	26.58
Advisor Class	$	26.22
A Class	$	26.26
A Class (offering price)	$	27.85
C Class	$	26.04
R6 Class	$	28.63
† Cost of investments in unaffiliated securities	$	5,016,929,222
‡ Cost of investments in affiliated securities	$	217,501,678
§ Fair value of securities on loan	$	27,838,132
A The Fund’s investments in affiliated securities did not have unrealized appreciation (depreciation) at period end.

See accompanying notes

15

American Beacon Large Cap Value Fund^SM

Statement of Operations

For the period ended April 30, 2018 (Unaudited)

Investment income:
Dividend income from unaffiliated securities (net of foreign taxes)†	$	83,150,708
Dividend income from affiliated securities (Note 8)		1,368,292
Interest income		31,705
Income derived from securities lending (Note 9)		391,477
Total investment income		84,942,182
Expenses:
Management and sub-advisory fees (Note 2)		18,651,410
Transfer agent fees:
Institutional Class (Note 2)		700,534
Y Class (Note 2)A		158,870
Investor Class		39,732
Advisor Class		2,136
A Class		1,220
R6 Class		922
Custody and fund accounting fees		395,156
Professional fees		141,301
Registration fees and expenses		87,883
Service fees (Note 2):
Investor Class		3,219,080
Advisor Class		103,712
A ClassA		10,583
C ClassA		(5,704	)
Distribution fees (Note 2):
Advisor Class		103,712
A Class		50,406
C Class		40,068
Prospectus and shareholder report expenses		192,060
Trustee fees (Note 2)		227,772
Other expenses		207,435
Total expenses		24,328,288
Net fees waived and expenses recouped (Note 2)		1,950
Net expenses		24,330,238
Net investment income		60,611,944
Realized and unrealized gain (loss) from investments:
Net realized gain from:
Investments in unaffiliated securitiesB		172,567,447
Commission recapture (Note 1)		71,697
Foreign currency transactions		16,503
Futures contracts		11,956,693
Change in net unrealized appreciation (depreciation) of:
Investments in unaffiliated securitiesC		(68,998,659	)
Futures contracts		(4,762,761	)
Net gain from investments		110,850,920
Net increase in net assets resulting from operations	$	171,462,864
† Foreign taxes	$	706,718
A The Manager voluntarily reimbursed service fees and sub-transfer agent fees (Note 2).
B The Fund did not recognize net realized gains (losses) from the sale of investments in affiliated securities.
C The Fund’s investments in affiliated securities did not have a change in unrealized appreciation (depreciation) at period end.

See accompanying notes

16

American Beacon Large Cap Value Fund^SM

Statement of Changes in Net Assets

	Six Months Ended April 30, 2018			Year Ended October 31, 2017
	(unaudited)
Increase (decrease) in net assets:
Operations:
Net investment income	$	60,611,944		$	128,855,668
Net realized gain from investments in unaffiliated securities, commission recapture, foreign currency transactions, and futures contracts		184,612,340			694,063,205
Change in net unrealized appreciation (depreciation) of investments in unaffiliated securities, and futures contracts		(73,761,420	)		828,241,553
Net increase in net assets resulting from operations		171,462,864			1,651,160,426
Distributions to shareholders:
Net investment income:
Institutional Class		(80,030,031	)		(112,815,102	)
Y Class		(6,568,654	)		(7,905,543	)
Investor Class		(28,776,166	)		(44,594,218	)
Advisor Class		(1,139,533	)		(2,058,628	)
A Class		(631,959	)		(879,050	)
C Class		(69,546	)		(99,793	)
R6 Class		(3,120,202	)		–
Net realized gain from investments:
Institutional Class		(379,390,208	)		(40,827,429	)
Y Class		(32,123,502	)		(2,953,376	)
Investor Class		(168,008,340	)		(18,906,905	)
Advisor Class		(7,525,347	)		(953,678	)
A Class		(3,608,941	)		(366,411	)
C Class		(738,649	)		(77,352	)
R6 Class		(14,514,695	)		–
Net distributions to shareholders		(726,245,773	)		(232,437,485	)
Capital share transactions (Note 11):
Proceeds from sales of shares		800,626,892			1,070,944,813
Reinvestment of dividends and distributions		686,933,740			220,594,801
Cost of shares redeemed		(1,478,282,529	)		(3,282,487,770	)
Net increase (decrease) in net assets from capital share transactions		9,278,103			(1,990,948,156	)
Net (decrease) in net assets		(545,504,806	)		(572,225,215	)
Net assets:
Beginning of period		7,317,729,948			7,889,955,163
End of period *	$	6,772,225,142		$	7,317,729,948
*Includes undistributed net investment income	$	42,443,332		$	102,167,479

See accompanying notes

17

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

1.  Organization and Significant Accounting Policies

American Beacon Funds (the “Trust”), is organized as a Massachusetts business trust. The Fund, a series within the Trust, is registered under the Investment Company Act of 1940 (the “Act”), as amended, as a diversified, open-end management investment company. As of April 30, 2018, the Trust consists of thirty-three active series, one of which is presented in this filing: American Beacon Large Cap Value Fund (the “Fund”). The remaining thirty-two active series are reported in separate filings.

American Beacon Advisors, Inc. (the “Manager”) is a wholly-owned subsidiary of Resolute Investment Managers, Inc., which is indirectly owned by investment funds affiliated with Kelso & Company, L.P. and Estancia Capital Management, LLC, and was organized in 1986 to provide business management, advisory, administrative, and asset management consulting services to the Trust and other investors.

Class Disclosure

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

Class	Eligible Investors	Minimum Initial Investments
Institutional	Large institutional investors - sold directly or through intermediary channels.	$	250,000
Y Class	Large institutional retirement plan investors - sold directly or through intermediary channels.	$	100,000
Investor	All investors using intermediary organizations, such as broker-dealers or retirement plan sponsors.	$	2,500
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
R6	Large institutional retirement plan investors - sold through retirement plan sponsors.		None

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 on the basis of 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 Financial Accounting Standards Board Accounting Standard Codification Topic 946, Financial Services – Investment Companies, a part of Generally Accepted Accounting Principles (“U.S. GAAP”).

18

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Security Transactions and Investment Income

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

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

Distributions to Shareholders

Distributions, if any, of net investment income are generally paid at least annually and recorded on the ex-dividend date. Distributions, if any, of net realized capital gains are generally paid at least annually and recorded on the ex-dividend date. 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 a Fund’s investment advisor chooses to execute a transaction through a participating broker, the broker rebates a portion of the commission back to the Fund. Any collateral benefit received through participation in the commission recapture program is directed exclusively to the Fund. This amount is reported with the net realized gain in the Fund’s Statement of Operations, if applicable.

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 any 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.

19

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

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; Brandywine Global Investment Management, LLC; Hotchkis and Wiley Capital Management, LLC; and Massachusetts Financial Services Company (“Sub-Advisors”) 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 period ended April 30, 2018 were as follows:

	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.35	%	$	12,481,374
Sub-Advisor Fees		0.18	%		6,170,036
Total		0.53	%	$	18,651,410

As compensation for services provided by the Manager in connection with securities lending activities conducted by the Fund, the lending Fund pays to the Manager, with respect to cash collateral posted by borrowers, a fee up to 10% of the net monthly interest income (the gross interest income earned by the investment of cash collateral, less the amount paid to borrowers and related expenses) from such activities and, with respect to loan fees paid by borrowers, a fee up to 10% of such loan fees. These fees are included in “Income derived from securities lending” and “Management and investment advisory fees” on the Statement of Operations. During the period ended April 30, 2018, the Manager received securities lending fees of $40,310 for the securities lending activities of the Fund.

Distribution Plans

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

Separate Distribution Plans (the “Distribution Plans”) have been adopted pursuant to Rule 12b-1 under the Act for the Advisor, A, and C Classes of the Fund. Under the Distribution Plans, as compensation for distribution 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.

20

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Service Plans

The Manager and the Trust entered into Service Plans that obligate 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 Plans, 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. During the period ended April 31, 2018 the Manager voluntarily reimbursed service fees to the A and C classes of the Fund in the amounts of $18,035 and $10,646, respectively.

Sub-Transfer Agent Fees

The Manager has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Institutional and Y Classes of the Fund and has agreed to compensate the intermediaries for providing these services. Intermediaries transact with the Fund primarily through the use of omnibus accounts on behalf of their 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 the Board approval, has agreed to reimburse the Manager for certain non-distribution shareholder services provided by financial intermediaries for the Institutional and Y Classes. The reimbursement amounts (sub-transfer agent fees) paid to the Manager are subject to a fee limit of up to 0.10% of an intermediary’s average net assets in the Institutional and Y Classes on an annual basis. During the period ended April 30, 2018, the sub-transfer agent fees, as reflected in “Transfer agent fees” on the Statement of Operations, were as follows:

Fund	Sub-Transfer Agent Fees
Large Cap Value	$	769,654

As of April 30, 2018, 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
Large Cap Value	$	66,128

During the period ended April 30, 2018, the Manager voluntarily reimbursed sub-transfer agent fees to the Y Class of the Fund in the amount of $39,292.

Investments in Affiliated Funds

The Fund may invest in the American Beacon U.S. Government Money Market Select Fund (the “USG Select Fund”). Cash collateral received by the Fund in connection with securities lending may also be invested in the USG Select Fund. The Fund and the USG Select Fund have the same investment advisor and therefore, are considered to be affiliated. The Manager serves as investment advisor to the USG Select Fund and receives management fees and administrative fees totaling 0.10% of the average daily net assets of the USG Select Fund. During the period ended April 30, 2018, 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 in USG Select Fund		Total
Large Cap Value	$	110,112	$	63,155	$	173,267

21

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Interfund Credit Facility

Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), the Fund, along with other registered investment companies having management contracts with the Manager, may participate in a credit facility whereby each Fund, under certain conditions, is permitted to lend money directly to and borrow directly from other participating Funds for temporary purposes. The interfund credit facility is advantageous to the Funds because it provides added liquidity, and eliminates the need to maintain higher cash balances to meet redemptions. This situation could arise when shareholder redemptions exceed anticipated volumes and certain funds have insufficient cash on hand to satisfy such redemptions or when sales of securities do not settle as expected, resulting in a cash shortfall for a fund. When a Fund liquidates portfolio securities to meet redemption requests, they often do not receive payment in settlement for up to two days (or longer for certain foreign transactions). Redemption requests normally are satisfied on the next business day. The credit facility provides a source of immediate, short-term liquidity pending settlement of the sale of portfolio securities. The credit facility is administered by a credit facility team consisting of professionals from the Manager’s asset management, compliance, and accounting areas who report the activities of the credit facility to the Board. During the period ended April 30, 2018, the Large Cap Value Fund participated as a lender by loaning an average amount of $2,431,930 for 48 days at an average interest rate of 1.97% with interest charges earned of $6,554. This amount is included in “Interest income” on the Statement of Operations.

Expense Reimbursement Plan

The Manager voluntarily agreed to reduce fees and/or reimburse expenses for the classes of the Fund to the extent that total operating expenses exceed the Fund’s expense cap. During the period ended April 30, 2018, the Manager waived and/or reimbursed expenses as follows:

			Expense Cap								Expiration of Reimbursed Expenses
Fund	Class		11/1/2017 - 4/30/2018			Reimbursed Expenses		(Recouped) Expenses
Large Cap Value		R6		0.58	%	$	–	$	(1,950	)		2021

The Fund has adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of such fee reductions and expense reimbursements. Under the policy, the Manager can recoup from the Fund for any contractual or voluntary fee reductions or expense reimbursements if recoupment by the Manager (a) occurs within three years after the Manager’s own waiver or reimbursement and (b) does not cause the Fund’s annual operating expenses to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or time of recoupment. The reimbursed expenses listed above will expire in 2021. The Fund did not record a liability for potential reimbursements, due to the current assessment that a reimbursement is unlikely.

The Distributor

Effective March 1, 2018, Resolute Investment Distributors, Inc. (“RID” or “Distributor”) replaced Foreside Fund Services, LLC (“Foreside”) as the Fund(s)’ distributor and principal underwriter of the Fund’s shares.

RID is a registered broker-dealer and is a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”). The Distributor is affiliated with the Manager through common ownership. Under a Distribution Agreement with the Trust, the Distributor acts as the distributor and principal underwriter of the Trust in connection with the continuous offering of shares of the Fund. The Distributor continually distributes shares of the Fund on a best efforts basis. The Distributor has no obligation to sell any specific quantity of the Fund’s shares. Pursuant to the Distribution Agreement, to the extent applicable, the Distributor receives, and may re-allow to broker-dealers, all or a portion of the sales charge paid by the purchasers of A Class and C Class shares. For A Class and C Class shares, the Distributor receives commission revenue consisting of the portion of A Class and C Class sales charge remaining after the allowances by the Distributor to the broker-dealers. The Distributor retains any portion of the commission fees that are not paid to the broker-dealers for use solely to pay distribution related expenses.

22

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Prior to March 1, 2018, Foreside served as the distributor and principal underwriter of the Fund’s shares. Pursuant to a Sub-Administration Agreement between Foreside and the Manager in effect through February 28, 2018, Foreside received a fee from the Manager for providing administrative services in connection with the marketing and distribution of shares of the Trust, including the registration of Manager employees as registered representatives of Foreside to facilitate distribution of Fund shares. Foreside also received a fee from the Manager under a Marketing Agreement pursuant to which Foreside provided services in connection with the marketing of a Fund to institutional investors. Pursuant to the Distribution Agreement with the Trust in effect through February 28, 2018, Foreside received, and may have re-allowed to broker-dealers, all or a portion of the sales charge paid by the purchasers of A and C Class shares. For A and C Class shares, Foreside received commission revenues consisting of the portion of A and C Class sales charge remaining after the allowances by Foreside to the broker dealers. Foreside retained any portion of the commission fees that were not paid to the broker-dealers for use solely to pay distribution related expenses.

Sales Commissions

The Fund’s Distributor, formerly Foreside, may receive a portion of A Class sales charges from broker dealers and it may be used to offset distribution related expenses. During the period ended February 28, 2018, Foreside collected $1,070 for the Fund from the sale of Class A Shares. During the period March 1, 2018 through April 30, 2018, RID collected $483 for the Fund from the sale of Class A Shares.

A CDSC of 0.50% will be deducted with respect to Class A Shares on certain purchases of $1,000,000 or more that are redeemed in whole or part within 18 months of purchase, unless waived as discussed in the Fund’s Prospectus. Any applicable CDSC will be 0.50% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended April 30, 2018, there were no CDSC fees collected for Class A Shares of the Fund.

A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived as discussed in the Fund’s Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended February 28, 2018, Foreside collected CDSC fees of $32 for Class C Shares of the Fund. During the period March 1, 2018 through April 30, 2018, RID collected $114 for Class C Shares of the Fund.

Trustee Fees and Expenses

As compensation for their service to the Trust, American Beacon Select Funds, American Beacon Institutional Funds Trust, and American Beacon Sound Point Enhanced Income Fund, each Trustee receives an annual retainer of $120,000, plus $10,000 for each Board meeting attended in person or via teleconference, $2,500 for attendance by Committee members at meetings of the Audit Committee and the Investment Committee, and $1,500 for attendance by Committee members at meetings of the Nominating and Governance Committee, plus reimbursement of reasonable expenses incurred in attending Board meetings, Committee meetings, and relevant educational seminars. The Trustees also may be compensated for attendance at special Board and/or Committee meetings from time to time. The Board Chairman receives an additional annual retainer of $50,000 as well as a $2,500 fee each quarter for his attendance at the committee meetings. Effective January 1, 2018, the Board Vice Chair receives an additional annual retainer of $10,000. The Chairpersons of the Audit Committee and the Investment Committee each receive an additional annual retainer of $25,000 and the Chairman of the Nominating and Governance Committee receives an additional annual retainer of $10,000. These expenses are allocated on a prorated basis to each Fund of the Trusts according to its respective net assets.

3.  Security Valuation and Fair Value Measurements

The price of the Fund’s shares is based on the Fund’s Net Asset Value (“NAV”). The NAV of the Fund, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Fund or class, by the total number of shares outstanding of the Fund or class.

23

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Investments are valued at the close of the New York Stock Exchange (the “Exchange”), normally at 4:00 p.m. Eastern Time, each day that the Exchange is open for business. Equity securities, including exchange-traded funds (“ETFs”) for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade.

Investments in open-end mutual funds are valued at the closing NAV per share of the mutual fund on the day of valuation.

Securities for which the market prices are not readily available or are not reflective of the fair value of the security, as determined by the Manager, will be priced at fair value following procedures approved by the Board.

Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to deposit with their futures broker, an amount of cash or U.S. Government and Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked-to-market daily and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized, but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statement of Assets and Liabilities.

Other investments for which the above valuation procedures are inappropriate or are deemed not to reflect fair value, are stated at fair value as determined in good faith by the Manager’s Valuation Committee, pursuant to procedures established by the Board.

Valuation Inputs

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

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

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

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

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

4.  Securities and Other Investments

American Depositary Receipts and Non-Voting Depositary Receipts

American Depositary Receipts (“ADRs”) are depositary receipts for foreign issuers in registered form traded in U.S. securities markets. Non-Voting Depositary Receipts (“NVDRs”) represent financial interests in an issuer but

24

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

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

Common Stock

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

Other Investment Company Securities and Other Exchange-Traded Products

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

Publicly Traded Partnerships; Master Limited Partnerships

The Fund may invest in publicly traded partnerships such as master limited partnerships (“MLPs”). MLPs issue units that are registered with the SEC and are freely tradable on a securities exchange or in the OTC market. An MLP may have one or more general partners, who conduct the business, and one or more limited partners, who contribute capital. An MLP also may be an entity similar to a limited partnership, such as a limited liability company, which has a manager or managing member and non-managing members (who are like limited partners). The general partner or partners are jointly and severally responsible for the liabilities of the MLP. A Fund invests as a limited partner and normally would not be liable for the debts of an MLP beyond the amount the Fund has invested therein but it would not be shielded to the same extent that a shareholder of a corporation would be. In certain instances, creditors of an MLP would have the right to seek a return of capital that had been distributed to

25

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

a limited partner. The right of an MLP’s creditors would continue even after a Fund had sold its investment in the partnership. MLPs typically invest in real estate and oil and gas equipment leasing assets, but they also finance entertainment, research and development, and other projects.

Real Estate Investment Trusts

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

5.  Financial Derivative Instruments

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

Futures Contracts

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

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

During the period ended April 30, 2018, the Fund entered into future contracts primarily for exposing cash to markets.

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

Average Futures Contracts Outstanding
Fund	Period Ended April 30, 2018
Large Cap Value		1,731

26

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

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

Fair values of financial instruments on the Statement of Assets and Liabilities as of April 30, 2018:
	Derivatives not accounted for as hedging instruments
Liabilities:	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Payable for variation margin from open futures contracts(2)		$	–		$	–		$	–		$	–		$	(1,202,443	)		$	(1,202,443	)
The effect of financial derivative instruments on the Statement of Operations as of April 30, 2018:
	Derivatives not accounted for as hedging instruments
Realized gain (loss) from derivatives recognized as a result of operations	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Futures contracts		$	–		$	–		$	–		$	–		$	11,956,693			$	11,956,693
Net change in unrealized appreciation (depreciation) of derivatives recognized as a result from operations:	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Futures contracts		$	–		$	–		$	–		$	–		$	(4,762,761	)		$	(4,762,761	)

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

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

6.  Principal Risks

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

Equity Investment Risk

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

Foreign Investing Risk

The Fund may invest in securities issued by foreign companies through ADRs and U.S. dollar-denominated foreign stocks traded on U.S. exchanges. The Fund may also invest in local currency investments. ADRs are subject to many of the risks inherent in currency fluctuations and political and financial instability in the home country of a particular ADR or foreign stock. Non-U.S. investments carry potential risks not associated with U.S. investments.

27

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Such risks include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity and greater volatility, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased price volatility, (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets.

Futures Contracts Risk

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

Market Risk

Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in fixed income instruments experiencing unusual liquidity issues, increased price volatility and, in some cases, credit downgrades and increased likelihood of default. These events have reduced the willingness and ability of some lenders to extend credit, and have made it more difficult for some borrowers to obtain financing on attractive terms, if at all. In addition, global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely impact issuers in a different country or region. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasi-governmental organizations.

In addition, political events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree. High public debt in the U.S. and other countries creates ongoing systemic and market risks and policymaking uncertainty. Because the impact on the markets has been widespread, it may be difficult to identify both risks and opportunities using past models of the interplay of market forces, or to predict the duration of these market conditions. Interest rates have been unusually low in recent years in the U.S. and abroad. Because there is little precedent for this situation, it is difficult to predict the impact on various markets of a significant rate increase, whether brought about by U.S. policy makers or by dislocations in world markets. In addition, there is a risk that the prices of goods and services in the U.S. and many foreign economies may decline over time, known as deflation (the opposite of inflation). Deflation may have an adverse effect on stock prices and creditworthiness and may make defaults on debt more likely.

Multiple Sub-Advisor Risk

The Manager may allocate the Fund’s assets among multiple sub-advisors, each of which is responsible for investing its allocated portion of the Fund’s assets. To a significant extent, the Fund’s performance will depend on the success of the Manager in allocating the Fund’s assets to sub-advisors and its selection and oversight of the sub-advisors. Because each sub-adviser manages its allocated portion of the Fund independently from another sub-adviser, the same security may be held in different portions of the Fund, or may be acquired for one portion of the Fund at a time when a sub-adviser to another portion deems it appropriate to dispose of the security from that other portion, resulting in higher expenses without accomplishing any net result in the Fund’s holdings. Similarly, under some market conditions, one sub-adviser may believe that temporary, defensive investments in short-term instruments or cash are appropriate when another sub-adviser believes continued exposure to the equity or debt markets is appropriate for its allocated portion of the Fund. Because each sub-adviser directs the trading for its

28

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

own portion of the Fund, and does not aggregate its transactions with those of the other sub-advisors, the Fund may incur higher brokerage costs than would be the case if a single sub-adviser were managing the entire Fund. In addition, while the Manager seeks to allocate the Fund’s assets among the Fund’s sub-advisors in a manner that it believes is consistent with achieving the Fund’s investment objective(s), the Manager may be subject to potential conflicts of interest in allocating the Fund’s assets among sub-advisors.

Other Investment Companies Risk

The Fund may invest in shares of other registered investment companies, including money market funds that are advised by the Manager. To the extent that the Fund invests in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses charged by those investment companies in addition to the Fund’s direct fees and expenses and will be subject to the risks associated with investments in those companies. For example, money market funds are subject to interest rate risk, credit risk, and market risk.

Sector Risk

Sector risk is the risk associated with a Fund holding a significant amount of investments in similar businesses, which would be similarly affected by particular economic or market events, which may, in certain circumstances, cause the value of the equity and debt securities of companies in a particular sector of the market to change. To the extent a Fund has substantial holdings within a particular sector, the risks to a Fund associated with that sector increase.

To the extent a Fund invests in the financial services sector, the value of the Fund’s shares may be particularly vulnerable to factors affecting that sector, such as the availability and cost of capital funds, changes in interest rates, the rate of corporate and consumer debt defaults, extensive government regulation and price competition. The value of a Fund’s shares could experience significantly greater volatility than investment companies investing more broadly.

Securities Lending Risk

To the extent the Fund lends its securities, it may be subject to the following risks; i) borrowers of the Fund’s securities typically provide collateral in the form of cash that is reinvested in securities, ii) the securities in which the collateral is invested may not perform sufficiently to cover the return collateral payments owed to borrowers, iii) delays may occur in the recovery of securities from borrowers, which could interfere with the Fund’s ability to vote proxies or to settle transactions, and iv) there is the risk of possible loss of rights in the collateral should the borrower fail financially.

Offsetting Assets and Liabilities

The Fund is a party to enforceable master netting agreements between brokers and counterparties which provide for the right to offset under certain circumstances. The Fund employs multiple money managers and counterparties and has elected not to offset qualifying financial and derivative instruments on the Statement of Assets and Liabilities, as such all financial and derivative instruments are presented on a gross basis. The impacts of netting arrangements that provide the right to offset are detailed below. The net amount represents the net receivable or payable that would be due from or to the counterparty in the event of default. Exposure from borrowings and other financing agreements such as repurchase agreements can only be netted across transactions governed by the same Master Agreement with the same legal entity. All amounts reported below represent the balance as of the report date, April 30, 2018.

29

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Offsetting of Financial and Derivative Assets as of April 30, 2018:
	Assets		Liabilities
Futures Contracts	$	-	$	1,202,443
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	-	$	1,202,443
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)	$	-	$	(1,202,443	)

	Remaining Contractual Maturity of the Agreements As of April 30, 2018
	Overnight and Continuous		<30 days		Between 30 & 90 days		>90 days		Total
Securities Lending Transactions
Common Stocks	$	28,813,730	$	-	$	-	$	-	$	28,813,730
Total Borrowings	$	28,813,730	$	-	$	-	$	-	$	28,813,730
Gross amount of recognized liabilities for securities lending transactions									$	28,813,730

7.  Federal Income and Excise Taxes

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

The Fund does not have any unrecognized tax liabilities in the accompanying financial statements. Each of the tax years in the four year period ended October 31, 2017 remain subject to examination by the Internal Revenue Service. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statement of Operations.

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

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

As of April 30, 2018 the tax cost for the Fund and their respective gross unrealized appreciation (depreciation) were as follows:

Fund	Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Large Cap Value	$	5,357,228,796	$	1,674,641,539	$	(231,574,579	)	$	1,443,066,960

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

As of October 31, 2017, the Fund did not have any capital loss carryforwards.

30

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

8.  Investment Transactions

The aggregate cost of purchases and proceeds from sales and maturities of investments, other than short-term obligations, for the period ended April 30, 2018 were as follows:

Fund	Purchases (non-U.S. Government Securities)		Sales (non-U.S. Government Securities)
Large Cap Value	$	700,550,932	$	1,209,130,015

A summary of the Fund’s transactions in the USG Select Fund for the period ended April 30, 2018 were as follows:

Fund	Type of Transaction	October 31, 2017 Shares/Fair Value		Purchases		Sales		April 30, 2018 Shares/Fair Value		Dividend Income
Large Cap Value	Direct	$	288,452,185	$	1,339,234,400	$	1,438,998,637	$	188,687,948	$	1,368,292
Large Cap Value	Securities Lending		97,150,617		445,964,358		514,301,245		28,813,730		N/A

9.  Securities Lending

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

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

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

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

Securities lending transactions pose certain risks to the Fund, including that the borrower may not provide additional collateral when required or return the securities when due, that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower, that non-cash collateral may be subject to legal constraints in the event of a borrower bankruptcy, and that the cash collateral investments could become illiquid and unable to be used to return collateral to the borrower. The Fund could also experience

31

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the cash collateral available for return to the borrower and any action which impairs its ability to liquidate non-cash collateral to satisfy a borrower default.

As of April 30, 2018, the value of outstanding securities on loan and the value of collateral were as follows:

Fund	Market Value of Securities on Loan		Cash Collateral Received		Non-Cash Collateral Received		Total Collateral Received
Large Cap Value	$	27,838,132	$	28,813,730	$	–	$	28,813,730

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

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

10.  Borrowing Arrangements

Effective November 16, 2017, the Fund, along with certain other funds managed by the Manager (“Participating Funds”), entered into a committed revolving line of credit (the “Committed Line”) agreement with State Street Bank and Trust Company (the “Bank”) to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Committed Line is $50 million with interest at a rate equal to the higher of (a) one-month London Inter-Bank Offered Rate (“LIBOR”) plus 1.25% per annum or (b) the Federal Funds rate plus 1.25% per annum on amounts borrowed. Each of the Participating Funds will pay a commitment fee at a rate of 0.25% per annum on the unused portion of the Committed Line amount. The Committed Line expires November 15, 2018, unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

Effective November 16, 2017, the Fund, along with certain other Participating Funds managed by the Manager, entered into an uncommitted discretionary demand revolving line of credit (the “Uncommitted Line”) agreement with the Bank to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Uncommitted Line is $50 million with interest at a rate equal to the higher of (a) one-month LIBOR plus 1.25% per annum or (b) the Federal Funds rate. The Uncommitted Line expires November 15, 2018 unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

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

During the period ended April 30, 2018, the Fund did not utilize this facility.

11.  Capital Share Transactions

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

	Institutional Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Large Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		10,450,919		$	307,797,114			22,769,063		$	656,233,956
Reinvestment of dividends		14,507,736			424,641,445			5,164,960			144,102,372
Shares redeemed		(29,452,877	)		(878,172,685	)		(73,234,805	)		(2,103,146,975	)
Net (decrease) in shares outstanding		(4,494,222	)	$	(145,734,126	)		(45,300,782	)	$	(1,302,810,647	)

32

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

	Y Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Large Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		2,039,452		$	60,149,119			3,126,566		$	89,594,420
Reinvestment of dividends		1,294,567			37,646,020			382,065			10,598,482
Shares redeemed		(3,097,293	)		(88,480,743	)		(4,661,125	)		(131,631,686	)
Net increase (decrease) in shares outstanding		236,726		$	9,314,396			(1,152,494	)	$	(31,438,784	)
	Investor Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Large Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		2,958,728		$	82,282,514			9,354,201		$	251,586,213
Reinvestment of dividends		7,135,711			194,091,350			2,362,886			61,718,592
Shares redeemed		(16,735,492	)		(465,319,335	)		(35,958,339	)		(961,374,863	)
Net (decrease) in shares outstanding		(6,641,053	)	$	(188,945,471	)		(24,241,252	)	$	(648,070,058	)
	Advisor Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Large Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		222,891		$	6,078,448			472,811		$	12,521,928
Reinvestment of dividends		297,468			7,987,006			108,296			2,795,115
Shares redeemed		(670,704	)		(18,460,295	)		(2,242,361	)		(58,812,119	)
Net (decrease) in shares outstanding		(150,345	)	$	(4,394,841	)		(1,661,254	)	$	(43,495,076	)
	A Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Large Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		249,299		$	6,652,461			740,832		$	19,929,459
Reinvestment of dividends		156,141			4,195,476			47,258			1,221,618
Shares redeemed		(205,741	)		(5,648,472	)		(854,841	)		(22,876,376	)
Net increase (decrease) in shares outstanding		199,699		$	5,199,465			(66,751	)	$	(1,725,299	)
	C Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Large Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		21,331		$	568,642			38,862		$	1,023,344
Reinvestment of dividends		27,603			737,547			6,172			158,622
Shares redeemed		(52,241	)		(1,416,450	)		(129,249	)		(3,392,547	)
Net (decrease) in shares outstanding		(3,307	)	$	(110,261	)		(84,215	)	$	(2,210,581	)
	R6 Class
	Six Months Ended April 30, 2018						February 28, 2017A to October 31, 2017
	(unaudited)
Large Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		11,190,225		$	337,098,594			1,364,784		$	40,055,493
Reinvestment of dividends		602,696			17,634,896			–			–
Shares redeemed		(698,168	)		(20,784,549	)		(41,996	)		(1,253,204	)
Net increase in shares outstanding		11,094,753		$	333,948,941			1,322,788		$	38,802,289

^A Commencement of operations.

33

American Beacon Large Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

12.  Subsequent Events

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

34

American Beacon Large Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Institutional ClassA
	Six Months Ended April 30, 2018			Year Ended October 31,
				2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	30.98		$	25.80		$	28.38		$	31.21		$	27.59		$	21.58
Income (loss) from investment operations:
Net investment income		0.30			0.59			0.61			0.55			0.73			0.50
Net gains (losses) on investments (both realized and unrealized)		0.49			5.41			(0.29	)		(0.70	)		3.33			6.00
Total income (loss) from investment operations		0.79			6.00			0.32			(0.15	)		4.06			6.50
Less distributions:
Dividends from net investment income		(0.55	)		(0.60	)		(0.52	)		(0.67	)		(0.44	)		(0.49	)
Distributions from net realized gains		(2.58	)		(0.22	)		(2.38	)		(2.01	)		-			–
Total distributions		(3.13	)		(0.82	)		(2.90	)		(2.68	)		(0.44	)		(0.49	)
Net asset value, end of period	$	28.64		$	30.98		$	25.80		$	28.38		$	31.21		$	27.59
Total returnB		2.33	%C		23.60	%		1.69	%		(0.76	)%		14.89	%		30.70	%
Ratios and supplemental data:
Net assets, end of period	$	4,275,815,368		$	4,765,771,483		$	5,137,688,375		$	6,198,883,300		$	5,816,013,064		$	5,428,755,279
Ratios to average net assets:
Expenses, before reimbursements		0.59	%D		0.60	%		0.60	%		0.58	%		0.58	%		0.58	%
Expenses, net of reimbursements		0.59	%D		0.60	%		0.60	%		0.58	%		0.58	%		0.58	%
Net investment income, before expense reimbursements		1.80	%D		1.78	%		2.16	%		1.88	%		2.35	%		1.99	%
Net investment income, net of reimbursements		1.80	%D		1.78	%		2.16	%		1.88	%		2.35	%		1.99	%
Portfolio turnover rate		10	%C		25	%		25	%		32	%		29	%		34	%

^A  On May 31, 2016, the AMR Class closed and the assets were merged into the Institutional Class.

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

^C  Not annualized.

^D  Annualized.

See accompanying notes

35

American Beacon Large Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Y Class
	Six Months Ended April 30, 2018			Year Ended October 31,
				2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	30.78		$	25.64		$	28.21		$	31.04		$	27.46		$	21.47
Income (loss) from investment operations:
Net investment income		0.28			0.48			0.59			0.56			0.64			0.40
Net gains (losses) on investments (both realized and unrealized)		0.49			5.46			(0.29	)		(0.72	)		3.37			6.05
Total income (loss) from investment operations		0.77			5.94			0.30			(0.16	)		4.01			6.45
Less distributions:
Dividends from net investment income		(0.53	)		(0.58	)		(0.49	)		(0.66	)		(0.43	)		(0.46	)
Distributions from net realized gains		(2.58	)		(0.22	)		(2.38	)		(2.01	)		–			–
Total distributions		(3.11	)		(0.80	)		(2.87	)		(2.67	)		(0.43	)		(0.46	)
Net asset value, end of period	$	28.44		$	30.78		$	25.64		$	28.21		$	31.04		$	27.46
Total returnA		2.29	%B		23.51	%		1.61	%		(0.80	)%		14.78	%		30.59	%
Ratios and supplemental data:
Net assets, end of period	$	361,638,318		$	384,155,569		$	349,542,346		$	419,096,844		$	434,880,702		$	327,938,666
Ratios to average net assets:
Expenses, before reimbursements		0.64	%C		0.67	%		0.67	%		0.67	%		0.67	%		0.66	%
Expenses, net of reimbursements		0.64	%C		0.67	%		0.67	%		0.67	%		0.67	%		0.66	%
Net investment income, before expense reimbursements		1.75	%C		1.69	%		2.08	%		1.80	%		2.24	%		1.78	%
Net investment income, net of reimbursements		1.75	%C		1.69	%		2.08	%		1.80	%		2.24	%		1.78	%
Portfolio turnover rate		10	%B		25	%		25	%		32	%		29	%		34	%

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

^B  Not annualized.

^C  Annualized.

See accompanying notes

36

American Beacon Large Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Investor Class
	Six Months Ended April 30, 2018			Year Ended October 31,
				2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	28.92		$	24.13		$	26.70		$	29.51		$	26.11		$	20.43
Income (loss) from investment operations:
Net investment income		0.21			0.40			0.46			0.45			0.57			0.39
Net gains (losses) on investments (both realized and unrealized)		0.47			5.12			(0.25	)		(0.68	)		3.18			5.69
Total income (loss) from investment operations		0.68			5.52			0.21			(0.23	)		3.75			6.08
Less distributions:
Dividends from net investment income		(0.44	)		(0.51	)		(0.40	)		(0.57	)		(0.35	)		(0.40	)
Distributions from net realized gains		(2.58	)		(0.22	)		(2.38	)		(2.01	)		–			–
Total distributions		(3.02	)		(0.73	)		(2.78	)		(2.58	)		(0.35	)		(0.40	)
Net asset value, end of period	$	26.58		$	28.92		$	24.13		$	26.70		$	29.51		$	26.11
Total returnA		2.14	%B		23.20	%		1.33	%		(1.07	)%		14.50	%		30.26	%
Ratios and supplemental data:
Net assets, end of period	$	1,652,573,807		$	1,990,199,621		$	2,245,534,741		$	3,167,585,961		$	4,158,361,296		$	3,899,010,929
Ratios to average net assets:
Expenses, before reimbursements		0.92	%C		0.92	%		0.93	%		0.93	%		0.93	%		0.93	%
Expenses, net of reimbursements		0.92	%C		0.92	%		0.93	%		0.93	%		0.93	%		0.93	%
Net investment income, before expense reimbursements		1.49	%C		1.46	%		1.84	%		1.54	%		2.01	%		1.67	%
Net investment income, net of reimbursements		1.49	%C		1.46	%		1.84	%		1.54	%		2.01	%		1.67	%
Portfolio turnover rate		10	%B		25	%		25	%		32	%		29	%		34	%

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

^B  Not annualized.

^C  Annualized.

See accompanying notes

37

American Beacon Large Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Advisor ClassA
	Six Months Ended April 30, 2018			Year Ended October 31,
				2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	28.54		$	23.82		$	26.40		$	29.24		$	25.89		$	20.25
Income (loss) from investment operations:
Net investment income		0.18			0.21			0.40			0.40			0.47			0.35
Net gains (losses) on investments (both realized and unrealized)		0.47			5.20			(0.22	)		(0.66	)		3.20			5.65
Total income (loss) from investment operations		0.65			5.41			0.18			(0.26	)		3.67			6.00
Less distributions:
Dividends from net investment income		(0.39	)		(0.47	)		(0.38	)		(0.57	)		(0.32	)		(0.36	)
Distributions from net realized gains		(2.58	)		(0.22	)		(2.38	)		(2.01	)		–			–
Total distributions		(2.97	)		(0.69	)		(2.76	)		(2.58	)		(0.32	)		(0.36	)
Net asset value, end of period	$	26.22		$	28.54		$	23.82		$	26.40		$	29.24		$	25.89
Total returnB		2.05	%C		23.00	%		1.21	%		(1.19	)%		14.31	%		30.05	%
Ratios and supplemental data:
Net assets, end of period	$	77,089,742		$	88,196,090		$	113,168,437		$	140,975,319		$	149,422,940		$	128,528,036
Ratios to average net assets:
Expenses, before reimbursements		1.07	%D		1.07	%		1.08	%		1.07	%		1.07	%		1.07	%
Expenses, net of reimbursements		1.07	%D		1.07	%		1.08	%		1.07	%		1.07	%		1.07	%
Net investment income, before expense reimbursements		1.33	%D		1.31	%		1.69	%		1.40	%		1.83	%		1.52	%
Net investment income, net of reimbursements		1.33	%D		1.31	%		1.69	%		1.40	%		1.83	%		1.52	%
Portfolio turnover rate		10	%C		25	%		25	%		32	%		29	%		34	%

^A  On January 15, 2016, the Retirement Class closed and the assets were merged into the Advisor Class.

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

^C  Not annualized.

^D  Annualized.

See accompanying notes

38

American Beacon Large Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	A Class
	Six Months Ended April 30, 2018			Year Ended October 31,
				2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	28.61		$	23.90		$	26.51		$	29.38		$	26.03		$	20.41
Income (loss) from investment operations:
Net investment income		0.27			0.28			0.42			0.47			0.54			0.38
Net gains (losses) on investments (both realized and unrealized)		0.41			5.17			(0.21	)		(0.71	)		3.16			5.65
Total income (loss) from investment operations		0.68			5.45			0.21			(0.24	)		3.70			6.03
Less distributions:
Dividends from net investment income		(0.45	)		(0.52	)		(0.44	)		(0.62	)		(0.35	)		(0.41	)
Distributions from net realized gains		(2.58	)		(0.22	)		(2.38	)		(2.01	)		–			–
Total distributions		(3.03	)		(0.74	)		(2.82	)		(2.63	)		(0.35	)		(0.41	)
Net asset value, end of period	$	26.26		$	28.61		$	23.90		$	26.51		$	29.38		$	26.03
Total returnA		2.16	%B		23.13	%		1.33	%		(1.14	)%		14.37	%		30.03	%
Ratios and supplemental data:
Net assets, end of period	$	42,025,877		$	40,073,435		$	35,071,001		$	39,401,153		$	22,781,918		$	11,904,903
Ratios to average net assets:
Expenses, before reimbursements		0.86	%C		0.98	%		0.98	%		0.97	%		1.04	%		1.08	%
Expenses, net of reimbursements		0.86	%C		0.98	%		0.98	%		0.97	%		1.04	%		1.08	%
Net investment income, before expense reimbursements		1.51	%C		1.38	%		1.78	%		1.48	%		1.83	%		1.44	%
Net investment income, net of reimbursements		1.51	%C		1.38	%		1.78	%		1.48	%		1.83	%		1.44	%
Portfolio turnover rate		10	%B		25	%		25	%		32	%		29	%		34	%

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

^B  Not annualized.

^C  Annualized.

See accompanying notes

39

American Beacon Large Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	C Class
	Six Months Ended April 30, 2018			Year Ended October 31,
				2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	28.27		$	23.57		$	26.17		$	29.03		$	25.81		$	20.29
Income (loss) from investment operations:
Net investment income		0.13			0.09			0.20			0.27			0.35			0.23
Net gains (losses) on investments (both realized and unrealized)		0.46			5.11			(0.19	)		(0.70	)		3.11			5.58
Total income (loss) from investment operations		0.59			5.20			0.01			(0.43	)		3.46			5.81
Less distributions:
Dividends from net investment income		(0.24	)		(0.28	)		(0.23	)		(0.42	)		(0.24	)		(0.29	)
Distributions from net realized gains		(2.58	)		(0.22	)		(2.38	)		(2.01	)		-			-
Total distributions		(2.82	)		(0.50	)		(2.61	)		(2.43	)		(0.24	)		(0.29	)
Net asset value, end of period	$	26.04		$	28.27		$	23.57		$	26.17		$	29.03		$	25.81
Total returnA		1.86	%B		22.27	%		0.51	%		(1.83	)%		13.48	%		29.00	%
Ratios and supplemental data:
Net assets, end of period	$	7,607,431		$	8,351,349		$	8,950,263		$	12,389,141		$	9,964,292		$	5,199,605
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.43	%C		1.72	%		1.74	%		1.73	%		1.79	%		1.84	%
Expenses, net of reimbursements or recoupments		1.43	%C		1.72	%		1.74	%		1.73	%		1.81	%		1.92	%
Net investment income, before expense reimbursements or recoupments		0.95	%C		0.66	%		1.02	%		0.73	%		1.09	%		0.68	%
Net investment income, net of reimbursements or recoupments		0.95	%C		0.66	%		1.02	%		0.73	%		1.07	%		0.60	%
Portfolio turnover rate		10	%B		25	%		25	%		32	%		29	%		34	%

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

^B  Not annualized.

^C  Annualized.

See accompanying notes

40

American Beacon Large Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	R6 Class
	Six Months Ended April 30, 2018			February 28, 2017A to October 31, 2017
	(unaudited)
Net asset value, beginning of period	$	30.98		$	28.64
Income from investment operations:
Net investment income		0.36			0.12
Net gains on investments (both realized and unrealized)		0.43			2.22
Total income from investment operations		0.79			2.34
Less distributions:
Dividends from net investment income		(0.56	)		-
Distributions from net realized gains		(2.58	)		-
Total distributions		(3.14	)		-
Net asset value, end of period	$	28.63		$	30.98
Total returnB		2.33	%C		8.17	%C
Ratios and supplemental data:
Net assets, end of period	$	355,474,599		$	40,982,401
Ratios to average net assets:
Expenses, before reimbursements		0.57	%D		0.60	%D
Expenses, net of reimbursements		0.57	%D		0.58	%D
Net investment income, before expense reimbursements		1.65	%D		1.38	%D
Net investment income, net of reimbursements		1.64	%D		1.40	%D
Portfolio turnover rate		10	%C		25	%E

^A  Commencement of operations.

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

^C  Not annualized.

^D  Annualized.

^E  Portfolio turnover rate is for the period from February 28, 2017 through October 31, 2017 and is not annualized.

See accompanying notes

41

Delivery of Documents

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www.americanbeaconfunds.com

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

To obtain more information about the Fund:

By E-mail:	On the Internet:
american_beacon.funds@ambeacon.com	Visit our website at www.americanbeaconfunds.com
By Telephone: Call (800) 658-5811	By Mail: American Beacon Funds P.O. Box 219643 Kansas City, MO 64121-9643
Availability of Quarterly Portfolio Schedules	Availability of Proxy Voting Policy and Records
In addition to the Schedule of Investments provided in each semi-annual and annual report, the Fund files a complete schedule of its portfolio holdings with the Securities and Exchange Commission (“SEC”) on Form N-Q as of the first and third fiscal quarters. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-1520. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling (800)-SEC-0330. A complete schedule of the Fund’s portfolio holdings is also available at www.americanbeaconfunds.com approximately twenty days after the end of each month.	A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Fund’s Statement of Additional Information, is available free of charge on the Fund’s website www.americanbeaconfunds.com and by calling 1-800-967-9009 or by accessing the SEC’s website at www.sec.gov. The Fund’s proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Fund’s Forms N-PX are available on the SEC’s website at www.sec.gov. The Fund’s proxy voting record may also be obtained by calling 1-800-967-9009.

Fund Service Providers:

CUSTODIAN State Street Bank and Trust Boston, Massachusetts TRANSFER AGENT DST Asset Manager Solutions Kansas City, Missouri INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ERNST & YOUNG LLP Dallas, Texas DISTRIBUTOR Resolute Investment Distributors, Inc. Irving, TX

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

American Beacon Funds and American Beacon Large Cap Value Fund are service marks of American Beacon Advisors, Inc.

SAR 04/18

About American Beacon Advisors

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

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

GARCIA HAMILTON QUALITY BOND FUND RISKS

The use of fixed-income securities entails interest rate and credit risks. 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. 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.

This may contain information obtained from third parties, including ratings from credit rating agencies such as Standard & Poor’s. Reproduction and distribution of third-party content in any form is prohibited except with the prior written permission of the related third party. Third-party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. THIRD-PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD-PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS.

Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes and should not be relied on as investment advice.

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 the 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 April 30, 2018

Contents

President’s Message	1
Performance Overview	2
Expense Examples	4
Schedule of Investments:
American Beacon Garcia Hamilton Quality Bond Fund	6
Financial Statements	8
Notes to Financial Statements	11
Financial Highlights:
American Beacon Garcia Hamilton Quality Bond Fund	24

  Additional Fund Information Back Cover

President’s Message

Dear Shareholders,   Since 1986, American Beacon has endeavored to provide investors with a disciplined approach to realizing long-term investment goals: Institutional wisdom + earned alpha = enduring value.   u  We believe institutional wisdom comes from having more than 30 years of experience as manager of one of the country’s largest pension plans. As a fiduciary, we have built an investment due-diligence and oversight infrastructure, which we leverage across all our investment products. When selecting our investment managers, we focus on their people, processes and performance. We perform due-diligence reviews with each investment manager on a quarterly basis.   u  We believe earned alpha – that is, the returns of an actively managed fund beyond a benchmark – comes from employing and engaging

investment managers we believe are best-in-class and who have defined, repeatable and proven processes. Our experience has shown us that, while it’s important to be mindful of short-term considerations, having a long-term focus helps manage expectations, mitigate risks and realize goals. Thus, we seek relationships with leading investment managers who display a willingness to undertake time-intensive research strategies. The resulting investment portfolios are differentiated from their peers and allow incremental changes to help address periods of market volatility and economic uncertainty.

u We believe enduring value comes from “putting a portfolio in place and sticking with the plan.” Our mutual funds provide you with access to institutional-quality, research-intensive investment managers with diverse processes and styles. In the long run, having such access and spending time in the market – rather than trying to time the market – may better position you to reach your long-term investment goals.

The markets and U.S. economy were robust during calendar year 2017. However, during periods of market volatility and economic uncertainty – such as what we’ve seen thus far in 2018 – investing for the long term requires conviction. It isn’t about identifying and anticipating the next big market move. It’s about identifying the right investment products for riding out those moves. It’s about developing an approach based on long-term participation, while seeking some measure of protection against ongoing volatility.

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. Many of the sub-advisors to our mutual funds pursue upside capture and/or downside protection using proprietary strategies. 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 high quality and lower risk.

At American Beacon, our approach is more than a concept. It’s the cornerstone of our culture. And we strive to apply it at every turn as we seek to provide a well-diversified line of investment products for your portfolio.

Thank you for your continued interest in 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,

Gene L. Needles, Jr.

President

American Beacon Funds

1

American Beacon Garcia Hamilton Quality Bond Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

The Investor Class of the American Beacon Garcia Hamilton Quality Bond Fund (“the Fund”) returned 0.16% for the six months ended April 30, 2018, outperforming the Bloomberg Barclays U.S. Aggregate Bond Index (the “Index”) return of -1.87% for the same period.

Total Returns for the Period ended April 30, 2018
	Ticker		6 Months*			1 Year			Since Inception (04/04/2016)
Institutional Class (1,3)		GHQIX		0.25	%		1.42	%		0.73	%
Y Class (1,3)		GHQYX		0.30	%		1.43	%		0.63	%
Investor Class (1,3)		GHQPX		0.16	%		1.14	%		0.40	%
Bloomberg Barclays U.S. Aggregate Bond Index (2)				(1.87	)%		(0.32	)%		0.41	%

* Not Annualized.

1. Performance shown is historical and is not indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is calculated based on the published end of day net asset values as of the date indicated and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only; and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights. A portion of the fees charged to each Class of the Fund has been waived since Fund inception. Performance prior to waiving fees was lower than the actual returns shown since inception.

2. The Bloomberg Barclays U.S. Aggregate Bond Index is a market value weighted performance benchmark for government, corporate, mortgage-backed and asset-backed fixed-rate debt securities of all maturities.

3. The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the Institutional, Y and Investor Class shares were 0.70%, 0.77% and 0.94%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

The Fund’s outperformance was primarily due to its duration management. For the period, the Fund maintained a shorter duration than the benchmark, which was beneficial as interest rates rose. The subadvisor believed the market was underestimating the pace of future rate hikes, the impact of the Fed’s reduction of its balance sheet, and the potential bias for rates to move higher as geopolitical tensions with North Korea eased.

In addition to active duration management, the Fund maintained a barbell yield-curve position in anticipation of a flatter treasury curve. The Fund was overweight the shortest and longest durations along the curve and was underweight in the middle. Floating-rate corporate bonds and agency issues were used to generate yield and protect from rising rates at the short end, and 30-year treasury bonds were used to manage overall duration at the long end of the curve.

From a sector-allocation perspective, the Fund was underweight the credit sector on a duration-adjusted basis. This positioning benefited the Fund as fixed-rate spreads widened during the period. The subadvisor believed there was little value in fixed-rate spread risk, especially as the coupons on floating-rate securities adjusted higher with short-term interest rates.

Overall, the Fund continues to emphasize high-quality, active fixed-income investing that seeks to perform well in volatile markets and serves an important role in asset allocation.

2

American Beacon Garcia Hamilton Quality Bond Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

Top Ten Holdings (% Net Assets)
Federal Home Loan Mortgage Corp., 2.156%, Due 7/5/2019		7.9
U.S. Treasury Notes/Bonds, 1.625%, Due 2/15/2026		7.8
U.S. Treasury Notes/Bonds, 2.875%, Due 8/15/2045		7.6
Federal Home Loan Bank, 2.152%, Due 10/26/2018		5.8
Federal Home Loan Bank, 1.911%, Due 6/12/2019		5.7
U.S. Treasury Notes/Bonds, 2.500%, Due 5/15/2046		4.2
Apple, Inc., 2.089%, Due 5/6/2019		3.7
American Express Credit Corp., 2.728%, Due 3/18/2019		3.4
Morgan Stanley, 3.759%, Due 10/24/2023		3.4
Merck & Co., Inc., 2.186%, Due 2/10/2020		3.3
Total Fund Holdings	30
Sector Allocation (% Investments)
U.S. Treasury Obligations		27.0
Financial		20.2
U.S. Government Agency Obligations		19.0
U.S. Agency Mortgage-Backed Obligations		13.8
Technology		9.0
Consumer, Non-Cyclical		4.8
Communications		3.2
Energy		3.0

3

American Beacon Garcia Hamilton Quality Bond Fund^SM

Expense Examples

April 30, 2018 (Unaudited)

Fund Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees, if applicable, and (2) ongoing costs, including management fees, distribution (12b-1) fees, sub-transfer agent fees, and other Fund expenses. The Examples are intended to help you understand the ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from November 1, 2017 through April 30, 2018.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

4

American Beacon Garcia Hamilton Quality Bond Fund^SM

Expense Examples

April 30, 2018 (Unaudited)

American Beacon Garcia Hamilton Quality Bond Fund
	Beginning Account Value 11/1/2017		Ending Account Value 4/30/2018		Expenses Paid During Period 11/1/2017-4/30/2018*
Institutional Class
Actual		$1,000.00		$1,002.50		$2.23
Hypothetical**		$1,000.00		$1,022.60		$2.26
Y Class
Actual		$1,000.00		$1,003.00		$2.73
Hypothetical**		$1,000.00		$1,022.10		$2.76
Investor Class
Actual		$1,000.00		$1,001.60		$4.12
Hypothetical**		$1,000.00		$1,020.70		$4.16

* Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.45%, 0.55%, and 0.83% for the Institutional, Y, and Investor Classes, respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half-year period.

** 5% return before expenses.

5

American Beacon Garcia Hamilton Quality Bond Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 37.46%
Communications - 2.94%
Walt Disney Co., 2.415%, Due 3/4/2022, (3-mo. USD LIBOR + 0.390%)A		$	4,336,000		$	4,360,754
Consumer, Non-Cyclical - 4.51%
Merck & Co., Inc., 2.186%, Due 2/10/2020, (3-mo. USD LIBOR + 0.375%)A			4,860,000			4,887,314
PepsiCo, Inc., 2.728%, Due 5/2/2022, (3-mo. USD LIBOR + 0.365%)A			1,800,000			1,811,626
						6,698,940
Energy - 2.83%
Chevron Corp., 2.369%, Due 11/15/2021, (3-mo. USD LIBOR + 0.530%)A			4,140,000			4,201,835
Financial - 18.83%
American Express Credit Corp., 2.728%, Due 3/18/2019, (3-mo. USD LIBOR + 0.550%)A			5,099,000			5,118,040
Goldman Sachs Group, Inc., 3.584%, Due 11/29/2023, (3-mo. USD LIBOR + 1.600%)A			4,080,000			4,253,033
JPMorgan Chase & Co., 3.589%, Due 10/24/2023, (3-mo. USD LIBOR + 1.230%)A			4,700,000			4,809,069
Morgan Stanley, 3.759%, Due 10/24/2023, (3-mo. USD LIBOR + 1.400%)A			4,935,000			5,073,373
US Bank NA, 2.839%, Due 10/28/2019, (3-mo. USD LIBOR + 0.480%)A			4,240,000			4,259,601
Wells Fargo & Co.,
3.387%, Due 7/26/2021, (3-mo. USD LIBOR + 1.025%)A			2,815,000			2,867,389
3.469%, Due 1/24/2023, (3-mo. USD LIBOR + 1.110%)A			1,542,000			1,563,619
						27,944,124
Technology - 8.35%
Apple, Inc., 2.089%, Due 5/6/2019, (3-mo. USD LIBOR + 0.300%)A			5,504,000			5,522,397
Intel Corp., 2.161%, Due 5/11/2022, (3-mo. USD LIBOR + 0.350%)A			2,560,000			2,580,364
Oracle Corp., 2.928%, Due 1/15/2019, (3-mo. USD LIBOR + 0.580%)A			4,280,000			4,293,152
						12,395,913
Total Corporate Obligations (Cost $55,232,863)						55,601,566
U.S. GOVERNMENT AGENCY OBLIGATIONS - 17.67%
Federal Farm Credit Banks,
1.987%, Due 5/25/2018, (1-mo. USD LIBOR + 0.090%)A			1,525,000			1,525,261
2.016%, Due 11/13/2018, (1-mo. USD LIBOR + 0.120%)A			4,220,000			4,225,168
2.068%, Due 1/22/2019, (1-mo. USD LIBOR + 0.170%)A			3,405,000			3,411,486
Federal Home Loan Bank,
1.911%, Due 6/12/2019, (3-mo. USD LIBOR - 0.160%)A			8,490,000			8,499,466
2.152%, Due 10/26/2018, (3-mo. USD LIBOR - 0.210%)A			8,560,000			8,563,826
Total U.S. Government Agency Obligations (Cost $26,214,815)						26,225,207
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 12.82%
Federal Home Loan Mortgage Corp.,
2.156%, Due 7/5/2019, (3-mo. USD LIBOR - 0.165%)A			11,635,000			11,652,240
4.500%, Due 12/1/2034			3,110,649			3,254,874
Federal National Mortgage Association,
5.500%, Due 1/1/2024			2,176,769			2,272,196
5.000%, Due 7/1/2026			1,816,967			1,852,640
Total U.S. Agency Mortgage-Backed Obligations (Cost $19,212,725)						19,031,950
U.S. TREASURY OBLIGATIONS - 25.18%
U.S. Treasury Notes/Bonds,
2.000%, Due 10/31/2022			3,975,000			3,846,279
1.625%, Due 2/15/2026			12,740,000			11,592,405
2.375%, Due 5/15/2027			2,830,000			2,704,861
6.250%, Due 5/15/2030			1,245,000			1,659,254
2.875%, Due 8/15/2045			11,770,000			11,295,062
2.500%, Due 5/15/2046			7,065,000			6,274,879
Total U.S. Treasury Obligations (Cost $37,203,947)						37,372,740

See accompanying notes

6

American Beacon Garcia Hamilton Quality Bond Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares			Fair Value
SHORT-TERM INVESTMENTS - 6.56%
Investment Companies - 0.33%
American Beacon U.S. Government Money Market Select Fund, Select Class, 1.61%B C			498,687		$	498,687
	Principal Amount
U.S. Government Agency Obligations - 6.23%
Federal Home Loan Bank Discount Note, 1.654%, Due 5/4/2018		$	9,245,000			9,243,687
Total Short-Term Investments (Cost $9,742,431)						9,742,374
TOTAL INVESTMENTS - 99.69% (Cost $147,606,781)						147,973,837
OTHER ASSETS, NET OF LIABILITIES - 0.31%						455,681
TOTAL NET ASSETS - 100.00%					$	148,429,518
Percentages are stated as a percent of net assets.

^A Variable, floating, or adjustable rate securities with an interest rate that changes periodically. Rates are periodically reset with rates that are based on a predetermined benchmark such as a widely followed interest rate such as T-bills, LIBOR or PRIME plus a fixed spread. The interest rate disclosed reflects the rate in effect on April 30, 2018.

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

^C 7-day yield.

LIBOR - London Interbank Offered Rate.

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of April 30, 2018, the investments were classified as described below:

Garcia Hamilton Quality Bond Fund	Level 1		Level 2		Level 3		Total
Assets
Corporate Obligations	$	-	$	55,601,566	$	-	$	55,601,566
U.S. Government Agency Obligations		-		26,225,207		-		26,225,207
U.S. Agency Mortgage-Backed Obligations		-		19,031,950		-		19,031,950
U.S. Treasury Obligations		-		37,372,740		-		37,372,740
Short-Term Investments
Investment Companies		498,687		-		-		498,687
U.S. Government Agency Obligations		-		9,243,687		-		9,243,687
Total Investments in Securities - Assets	$	498,687	$	147,475,150	$	-	$	147,973,837

U.S. GAAP requires all transfers between any levels to be disclosed. The end of period timing recognition has been adopted for the transfers between levels of the Fund’s assets and liabilities. During the period ended April 30, 2018, there were no transfers between levels.

See accompanying notes

7

American Beacon Garcia Hamilton Quality Bond Fund^SM

Statement of Assets and Liabilities

April 30, 2018 (Unaudited)

Assets:
Investments in unaffiliated securities, at fair value†	$	147,475,150
Investments in affiliated securities, at fair value‡		498,687
Cash		24,082
Interest receivable		516,095
Receivable for fund shares sold		5,281
Receivable for expense reimbursement (Note 2)		29,017
Prepaid expenses		41,582
Total assets		148,589,894
Liabilities:
Payable for fund shares redeemed		33,748
Dividends payable		3,614
Management and sub-advisory fees payable (Note 2)		66,731
Service fees payable (Note 2)		2,193
Transfer agent fees payable (Note 2)		5,673
Custody and fund accounting fees payable		7,345
Professional fees payable		40,781
Trustee fees payable (Note 2)		291
Total liabilities		160,376
Net assets	$	148,429,518
Analysis of net assets:
Paid-in-capital	$	151,467,124
(Overdistribution) of net investment income		(87,308	)
Accumulated net realized (loss)		(3,317,354	)
Unrealized appreciation of investments in unaffiliated securitiesA		367,056
Net assets	$	148,429,518
Shares outstanding at no par value (unlimited shares authorized):
Institutional Class		13,678,236
Y Class		314,960
Investor Class		1,069,406
Net assets:
Institutional Class	$	134,786,871
Y Class	$	3,102,235
Investor Class	$	10,540,412
Net asset value, offering and redemption price per share:
Institutional Class	$	9.85
Y Class	$	9.85
Investor Class	$	9.86
† Cost of investments in unaffiliated securities	$	147,108,094
‡ Cost of investments in affiliated securities	$	498,687
A The Fund’s investments in affiliated securities did not have unrealized appreciation (depreciation) at period end.

See accompanying notes

8

American Beacon Garcia Hamilton Quality Bond Fund^SM

Statement of Operations

For the period ended April 30, 2018 (Unaudited)

Investment income:
Dividend income from affiliated securities (Note 8)	$	21,850
Interest income		1,468,485
Total investment income		1,490,335
Expenses:
Management and sub-advisory fees (Note 2)		398,395
Transfer agent fees:
Institutional Class (Note 2)		28,045
Y Class (Note 2)		1,370
Investor Class		790
Custody and fund accounting fees		10,156
Professional fees		23,226
Registration fees and expenses		23,320
Service fees (Note 2):
Investor Class		12,607
Prospectus and shareholder report expenses		6,630
Trustee fees (Note 2)		4,344
Other expenses		6,005
Total expenses		514,888
Net fees waived and expenses (reimbursed) (Note 2)		(168,232	)
Net expenses		346,656
Net investment income		1,143,679
Realized and unrealized gain (loss) from investments:
Net realized loss from:
Investments in unaffiliated securitiesA		(859,611	)
Change in net unrealized appreciation of:
Investments in unaffiliated securitiesB		186,158
Net (loss) from investments		(673,453	)
Net increase in net assets resulting from operations	$	470,226
A The Fund did not recognize net realized gains (losses) from the sale of investments in affiliated securities.
B The Fund’s investments in affiliated securities did not have a change in unrealized appreciation (depreciation) at period end.

See accompanying notes

9

American Beacon Garcia Hamilton Quality Bond Fund^SM

Statement of Changes in Net Assets

	Six Months Ended April 30, 2018			Year Ended October 31, 2017
	(unaudited)
Increase (decrease) in net assets:
Operations:
Net investment income	$	1,143,679		$	1,879,017
Net realized (loss) from investments in unaffiliated securities		(859,611	)		(2,226,277	)
Change in net unrealized appreciation of investments in unaffiliated securities		186,158			1,566,653
Net increase in net assets resulting from operations		470,226			1,219,393
Distributions to shareholders:
Net investment income:
Institutional Class		(1,137,713	)		(1,962,423	)
Y Class		(24,947	)		(43,416	)
Investor Class		(68,329	)		(104,914	)
Net realized gain from investments:
Institutional Class		–			(90,251	)
Y Class		–			(2,127	)
Investor Class		–			(6,000	)
Net distributions to shareholders		(1,230,989	)		(2,209,131	)
Capital share transactions (Note 9):
Proceeds from sales of shares		15,690,635			30,683,516
Reinvestment of dividends and distributions		1,227,127			2,206,616
Cost of shares redeemed		(13,160,399	)		(22,360,012	)
Net increase in net assets from capital share transactions		3,757,363			10,530,120
Net increase in net assets		2,996,600			9,540,382
Net assets:
Beginning of period		145,432,918			135,892,536
End of period *	$	148,429,518		$	145,432,918
*Includes undistributed (overdistribution of) net investment income	$	(87,308	)	$	2

See accompanying notes

10

American Beacon Garcia Hamilton Quality Bond Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

1.  Organization and Significant Accounting Policies

American Beacon Funds (the “Trust”), is organized as a Massachusetts business trust. The Fund, a series within the Trust, is registered under the Investment Company Act of 1940 (the “Act”), as amended, as a diversified, open-end management investment company. As of April 30, 2018, the Trust consists of thirty-three active series, one of which is presented in this filing: American Beacon Garcia Hamilton Quality Bond Fund (the “Fund”). The remaining thirty-two active series are reported in separate filings.

American Beacon Advisors, Inc. (the “Manager”) is a wholly-owned subsidiary of Resolute Investment Managers, Inc., which is indirectly owned by investment funds affiliated with Kelso & Company, L.P. and Estancia Capital Management, LLC, and was organized in 1986 to provide business management, advisory, administrative, and asset management consulting services to the Trust and other investors.

Class Disclosure

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

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

Each class offered by the Trust has equal rights as to assets and voting privileges. Income and non-class specific expenses are allocated daily to each class on the basis of 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 Financial Accounting Standards Board Accounting Standard Codification Topic 946, Financial Services – Investment Companies, a part of Generally Accepted Accounting Principles (“U.S. GAAP”).

Security Transactions and Investment Income

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

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

11

American Beacon Garcia Hamilton Quality Bond Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Distributions to Shareholders

Distributions, if any, of net investment income are generally paid at least annually and recorded on the ex-dividend date. Distributions, if any, of net realized capital gains are generally paid at least annually and recorded on the ex-dividend date. Dividends to shareholders are determined in accordance with federal income tax regulations, which may differ in amount and character from net investment income and realized gains recognized for purposes of U.S. GAAP. To the extent necessary to fully distribute capital gains, the Fund may designate earnings and profits distributed to shareholders on the redemption of shares.

Allocation of Income, Trust Expenses, Gains, and Losses

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

Use of Estimates

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

Other

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

2.  Transactions with Affiliates

Management and Investment Sub-Advisory Agreements

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

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

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

First $1 billion	0.20	%
Over $1 billion	0.15	%

12

American Beacon Garcia Hamilton Quality Bond Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

The Management and Sub-Advisory Fees paid by the Fund for the period ended April 30, 2018 were as follows:

	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.35	%	$	253,524
Sub-Advisor Fees		0.20	%		144,871
Total		0.55	%	$	398,395

Distribution Plans

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

Service Plans

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

Sub-Transfer Agent Fees

The Manager has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Institutional and Y Classes of the Fund and has agreed to compensate the intermediaries for providing these services. Intermediaries transact with the Fund primarily through the use of omnibus accounts on behalf of their customers who hold positions in the Fund. Certain services would have been provided by the Fund’s transfer agent and other service providers if the shareholders’ accounts were maintained directly by the Fund’s transfer agent. Accordingly, the Fund, pursuant to Board approval, has agreed to reimburse the Manager for certain non-distribution shareholder services provided by financial intermediaries for the Institutional and Y Classes. The reimbursement amounts (sub-transfer agent fees) paid to the Manager are subject to a fee limit of up to 0.10% of an intermediary’s average net assets in the Institutional and Y Classes on an annual basis. During the period ended April 30, 2018, the sub-transfer agent fees, as reflected in “Transfer agent fees” on the Statement of Operations, were as follows:

Fund	Sub-Transfer Agent Fees
Garcia Hamilton Quality Bond	$	27,137

As of April 30, 2018, 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
Garcia Hamilton Quality Bond	$	4,556

Investments in Affiliated Funds

The Fund may invest in the American Beacon U.S. Government Money Market Select Fund (the “USG Select Fund”). Cash collateral received by the Fund in connection with securities lending may also be invested in the USG Select Fund. The Fund and the USG Select Fund have the same investment advisor and therefore, are considered to

13

American Beacon Garcia Hamilton Quality Bond Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

be affiliated. The Manager serves as investment advisor to the USG Select Fund and receives management fees and administrative fees totaling 0.10% of the average daily net assets of the USG Select Fund.

During the period ended April 30, 2018, the Manager earned fees on the Fund’s direct investments in the USG Select Fund as shown below:

Fund	Direct Investments in USG Select Fund
Garcia Hamilton Quality Bond	$	1,604

Interfund Credit Facility

Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), the Fund, along with other registered investment companies having management contracts with the Manager, may participate in a credit facility whereby each Fund, under certain conditions, is permitted to lend money directly to and borrow directly from other participating Funds for temporary purposes. The interfund credit facility is advantageous to the Fund because it provides added liquidity, and eliminates the need to maintain higher cash balances to meet redemptions. This situation could arise when shareholder redemptions exceed anticipated volumes and certain funds have insufficient cash on hand to satisfy such redemptions or when sales of securities do not settle as expected, resulting in a cash shortfall for a fund. When a Fund liquidates portfolio securities to meet redemption requests, they often do not receive payment in settlement for up to two days (or longer for certain foreign transactions). Redemption requests normally are satisfied on the next business day. The credit facility provides a source of immediate, short-term liquidity pending settlement of the sale of portfolio securities. The credit facility is administered by a credit facility team consisting of professionals from the Manager’s asset management, compliance, and accounting areas who report the activities of the credit facility to the Board. During the period ended April 30, 2018, the Fund did not utilize the credit facility.

Expense Reimbursement Plan

The Manager contractually agreed to reduce fees and/or reimburse expenses for the classes of the Fund to the extent that total operating expenses exceed the Fund’s expense cap. During the period ended April 30, 2018, the Manager waived and/or reimbursed expenses as follows:

		Expense Cap							Expiration of Reimbursed Expenses
Fund	Class	11/1/2017 - 4/30/2018			Reimbursed Expenses		(Recouped) Expenses
Garcia Hamilton Quality Bond	Institutional		0.45	%	$	160,866	$	–		2021
Garcia Hamilton Quality Bond	Y		0.55	%		2,930		–		2021
Garcia Hamilton Quality Bond	Investor		0.83	%		4,436		–		2021

Of these amounts, $29,017 was disclosed as a receivable from the Manager on the Statement of Assets and Liabilities at April 30, 2018. The Fund has adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of such fee reductions and expense reimbursements. Under the policy, the Manager can be reimbursed by the Fund for any contractual or voluntary fee reductions or expense reimbursements if reimbursement to the Manager (a) occurs within three years after the Manager’s own waiver or reimbursement and (b) does not cause the Fund’s annual operating expenses to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or time of recoupment. The reimbursed expenses listed above will expire in 2021. The carryover of excess expenses potentially reimbursable to the Manager are as follows:

Fund	Recouped Expenses		Excess Expense Carryover		Expired Expense Carryover		Expiration of Reimbursed Expenses
Garcia Hamilton Quality Bond	$	–	$	248,391	$	-		2019
Garcia Hamilton Quality Bond		–		334,782		–		2020

14

American Beacon Garcia Hamilton Quality Bond Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

The Distributor

Effective March 1, 2018, Resolute Investment Distributors, Inc. (“RID” or “Distributor”) replaced Foreside Fund Services, LLC (“Foreside”) as the Fund(s)’ distributor and principal underwriter of the Funds’ shares.

RID is a registered broker-dealer and is a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”). The Distributor is affiliated with the Manager through common ownership. Under a Distribution Agreement with the Trust, the Distributor acts as the distributor and principal underwriter of the Trust in connection with the continuous offering of shares of the Funds. The Distributor continually distributes shares of the Funds on a best efforts basis. The Distributor has no obligation to sell any specific quantity of the Funds’ shares. Pursuant to the Distribution Agreement, to the extent applicable, the Distributor receives, and may re-allow to broker-dealers, all or a portion of the sales charge paid by the purchasers of A Class and C Class shares. For A Class and C Class shares, the Distributor receives commission revenue consisting of the portion of A Class and C Class sales charge remaining after the allowances by the Distributor to the broker-dealers. The Distributor retains any portion of the commission fees that are not paid to the broker-dealers for use solely to pay distribution related expenses.

Prior to March 1, 2018, Foreside served as the distributor and principal underwriter of the Funds’ shares. Pursuant to a Sub-Administration Agreement between Foreside and the Manager in effect through February 28, 2018, Foreside received a fee from the Manager for providing administrative services in connection with the marketing and distribution of shares of the Trust, including the registration of Manager employees as registered representatives of Foreside to facilitate distribution of Fund shares. Foreside also received a fee from the Manager under a Marketing Agreement pursuant to which Foreside provided services in connection with the marketing of a Fund to institutional investors. Pursuant to the Distribution Agreement with the Trust in effect through February 28, 2018, Foreside received, and may have re-allowed to broker-dealers, all or a portion of the sales charge paid by the purchasers of A and C Class shares. For A and C Class shares, Foreside received commission revenues consisting of the portion of A and C Class sales charge remaining after the allowances by Foreside to the broker dealers. Foreside retained any portion of the commission fees that were not paid to the broker-dealers for use solely to pay distribution related expenses.

Trustee Fees and Expenses

As compensation for their service to the Trust, the American Beacon Select Funds, the American Beacon Institutional Funds Trust, and American Beacon Sound Point Enhanced Income Fund, each Trustee receives an annual retainer of $120,000, plus $10,000 for each Board meeting attended in person or via teleconference, $2,500 for attendance by Committee members at meetings of the Audit Committee and the Investment Committee, and $1,500 for attendance by Committee members at meetings of the Nominating and Governance Committee, plus reimbursement of reasonable expenses incurred in attending Board meetings, Committee meetings, and relevant educational seminars. The Trustees also may be compensated for attendance at special Board and/or Committee meetings from time to time. The Board Chairman receives an additional annual retainer of $50,000 as well as a $2,500 fee each quarter for his attendance at the committee meetings. Effective January 1, 2018, the Board Vice Chair receives an additional annual retainer of $10,000. The Chairpersons of the Audit Committee and the Investment Committee each receive an additional annual retainer of $25,000 and the Chairman of the Nominating and Governance Committee receives an additional annual retainer of $10,000. These expenses are allocated on a prorated basis to each Fund of the Trusts according to its respective net assets.

3.  Security Valuation and Fair Value Measurements

The price of the Fund’s shares is based on the Fund’s Net Asset Value (“NAV”). The NAV of the Fund, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Fund or class, by the total number of shares outstanding of the Fund or class.

15

American Beacon Garcia Hamilton Quality Bond Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Investments are valued at the close of the New York Stock Exchange (the “Exchange”), normally at 4:00 p.m. Eastern Time, each day that the Exchange is open for business.

Debt securities normally are valued on the basis of prices provided by an independent pricing service and may take into account appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. Prices of debt securities may be determined using quotes obtained from brokers.

Investments in open-end mutual funds are valued at the closing NAV per share of the mutual fund on the day of valuation.

Securities for which the market prices are not readily available or are not reflective of the fair value of the security, as determined by the Manager, will be priced at fair value following procedures approved by the Board.

Other investments, including restricted securities and those financial instruments for which the above valuation procedures are inappropriate or are deemed not to reflect fair value, are stated at fair value, as determined in good faith by the Manager’s Valuation Committee, pursuant to procedures established by the Board.

Valuation Inputs

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

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

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

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

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by pricing service providers that use broker-dealer quotations or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows, and market-based yield spreads for each tranche, and incorporates deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

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

16

American Beacon Garcia Hamilton Quality Bond Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

4.  Securities and Other Investments

Agency Mortgage-Backed Securities

Certain mortgage-backed securities (“MBS”) may be issued or guaranteed by the U.S. government or a government sponsored entity, such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”). Although these instruments may be guaranteed by the U.S. government or a government sponsored entity, many such MBS are not backed by the full faith and credit of the United States and are still exposed to the risk of non-payment.

Fixed-Income Investments

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

Mortgage-Backed Securities

MBS often have stated maturities of up to thirty years when they are issued, depending upon the length of the mortgages underlying the securities. In practice however, unscheduled or early payments of principal and interest on the underlying mortgages may make the securities’ effective maturity shorter than this, and the prevailing interest rates may be higher or lower than the current yield of the Fund’s portfolio at the time resulting in reinvestment risk.

Rising or high interest rates may result in slower than expected principal payments which may tend to extend the duration of MBS, making them more volatile and more sensitive to changes in interest rates. This is known as extension risk.

MBS may have less potential for capital appreciation than comparable fixed-income securities due to the likelihood of increased prepayments of mortgages resulting from foreclosures or declining interest rates. These foreclosed or refinanced mortgages are paid off at face value (par) or less, causing a loss, particularly for any investor who may have purchased the security at a premium or a price above par. In such an environment, this risk limits the potential price appreciation of these securities.

Mortgage-Related and Other Asset-Backed Securities

The Fund may invest in mortgage or other ABS. These securities may include mortgage instruments issued by U.S. government agencies (“agency mortgages”) or those issued by private entities (“non-agency mortgages”). Specific types of instruments may include mortgage pass-through securities, collateralized mortgage obligations

17

American Beacon Garcia Hamilton Quality Bond Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

(“CMOs”), commercial mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities and other securities that directly or indirectly represent a participation in, or are secured by a payable from, mortgage loans on real property. The value of the Fund’s MBS may be affected by, among other things, changes or perceived changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the mortgage, or the quality of the underlying assets. The mortgages underlying the securities may default or decline in quality or value. Through its investments in MBS, a Fund has exposure to subprime loans, Alt-A loans and non-conforming loans as well as to the mortgage and credit markets generally. Underlying collateral related to subprime, Alt-A and non-conforming mortgage loans has become increasingly susceptible to defaults and declines in quality or value, especially in a declining residential real estate market. In addition, regulatory or tax changes may adversely affect the mortgage securities markets as a whole.

Other Investment Company Securities and Other Exchange-Traded Products

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

U.S. Government Agency Securities

U.S. Government agency securities are issued or guaranteed by the U.S. Government or its agencies or instrumentalities. Some obligations issued by U.S. Government agencies and instrumentalities are supported by the full faith and credit of the U.S. Treasury; others by the right of the issuer to borrow from the U.S. Treasury; others by discretionary authority of the U.S. Government to purchase certain obligations of the agency or instrumentality; and others only by the credit of the agency or instrumentality. U.S. Government securities bear fixed, floating or variable rates of interest. While the U.S. Government currently provides financial support to certain U.S. Government-sponsored agencies or instrumentalities, no assurance can be given that it will always do so, since it is not so obligated by law. U.S. Government securities include U.S. Treasury bills, notes and bonds, Federal Home Loan Bank (“FHLB”) obligations, Federal Farm Credit Bank (“FFCB”) obligations, U.S. Government agency obligations and repurchase agreements secured thereby. U.S. Government agency securities are subject to credit risk and interest rate risk.

U.S. Treasury Obligations

U.S. Treasury obligations include bills (initial maturities of one year or less), notes (initial maturities between two and ten years), and bonds (initial maturities over ten years) issued by the U.S. Treasury, Separately Traded Registered Interest and Principal component parts of such obligations (known as “STRIPS”) and inflation-indexed securities. The prices of these securities (like all debt securities) change between issuance and maturity in response to fluctuating market interest rates. U.S. Treasury obligations are subject to credit risk and interest rate risk.

18

American Beacon Garcia Hamilton Quality Bond Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

5.  Principal Risks

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

Credit Risk

The Fund is subject to the risk that the issuer or guarantor of a debt security, or the counterparty to a derivatives contract or a loan, will fail to make timely payment of interest or principal or otherwise honor its obligations or default completely.

Floating Rate Securities Risk

The interest rates payable on floating rate securities are not fixed and may fluctuate based upon changes in market rates. The interest rate on a floating rate security is a variable rate which is tied to another interest rate, such as a money-market index or Treasury bill rate. Floating rate securities are subject to interest rate risk and credit risk. As short-term interest rates decline, interest payable on floating rate securities typically decreases. Alternatively, during periods of rising interest rates, interest payable on floating rate securities typically increases. Changes in interest rates on floating rate securities may lag behind changes in market rates or may have limits on the maximum increases in interest rates. The value of floating rate securities may decline if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline.

Interest Rate Risk

The Fund is subject to the risk that the market value of fixed-income securities or derivatives it holds, particularly mortgage backed and other asset backed securities, will decline due to rising interest rates. Generally, the value of investments with interest rate risk, such as fixed-income securities, will move in the opposite direction to movements in interest rates. The Federal Reserve raised the federal funds rate several times since December 2015 and has signaled additional increases in the near future. Interest rates may rise, perhaps significantly and/or rapidly, potentially resulting in substantial losses to the Fund. The prices of fixed-income securities or derivatives are also affected by their duration. Fixed-income securities or derivatives with longer duration generally have greater sensitivity to changes in interest rates. An increase in interest rates can impact markets broadly as well. Some investors buy securities with borrowed money; an increase in interest rates can cause a decline in those markets.

Investment Risk

An investment in the Fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the Fund, they could be worth less than what you paid for them. Therefore, you may lose money by investing in the Fund.

Liquidity Risk

The Fund is susceptible to the risk that certain fixed-income investments, may have limited marketability or be subject to restrictions on sale, and may be difficult or impossible to purchase or sell at favorable times or prices. The Fund could lose money if it is unable to dispose of an investment at a time that is most beneficial to the Fund. The Fund may be required to dispose of investments at unfavorable times or prices to satisfy obligations, which may result in losses or may be costly to the Fund. For example, the Fund may be forced to sell certain investments at unfavorable prices to meet redemption requests or other cash needs. Judgment plays a greater role in pricing illiquid investments than in investments with more active markets.

19

American Beacon Garcia Hamilton Quality Bond Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Market Risk

Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in fixed income instruments experiencing unusual liquidity issues, increased price volatility and, in some cases, credit downgrades and increased likelihood of default. These events have reduced the willingness and ability of some lenders to extend credit, and have made it more difficult for some borrowers to obtain financing on attractive terms, if at all. In addition, global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely impact issuers in a different country or region. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasi-governmental organizations.

In addition, political events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree. High public debt in the U.S. and other countries creates ongoing systemic and market risks and policymaking uncertainty. Because the impact on the markets has been widespread, it may be difficult to identify both risks and opportunities using past models of the interplay of market forces, or to predict the duration of these market conditions. Interest rates have been unusually low in recent years in the U.S. and abroad. Because there is little precedent for this situation, it is difficult to predict the impact on various markets of a significant rate increase, whether brought about by U.S. policy makers or by dislocations in world markets. In addition, there is a risk that the prices of goods and services in the U.S. and many foreign economies may decline over time, known as deflation (the opposite of inflation). Deflation may have an adverse effect on stock prices and creditworthiness and may make defaults on debt more likely.

Mortgage-Backed and Mortgage Related Securities Risk

Certain mortgage-backed and mortgage related securities may include securities backed by pools of loans made to “subprime” borrowers or borrowers with blemished credit histories; the risk of defaults is generally higher in the case of mortgage pools that include such subprime mortgages. A security backed by the U.S. Treasury or the full faith and credit of the United States is guaranteed by the applicable entity only as to the timely payment of interest and principal when held to maturity. The market prices for such securities are not guaranteed and will fluctuate. Additionally, circumstances could arise that would prevent the payment of interest or principal. This could result in losses to the Fund. Securities held by the Fund that are issued by government-sponsored enterprises, such as the Fannie Mae, Freddie Mac, and FHLB are not guaranteed by the U.S. Treasury, are not backed by the full faith and credit of the U.S. Government and no assurance can be given that the U.S. Government will provide financial support. U.S. Government securities and securities of government sponsored enterprises are also subject to credit risk, interest rate risk and market risk. The Fund’s investment in CMOs may offer a higher yield than U.S. government securities, but they may also be subject to greater price fluctuation and credit risk. The cash flows and yields on interest only (“IO”) and principal only (“PO”) are extremely sensitive to the rate of principal payments (including prepayments) on the underlying mortgage loans or mortgage-backed securities. A rapid rate of principal payments may adversely affect the yield to maturity of IOs. A slow rate of principal payments may adversely affect the yield to maturity of POs. Inverse IOs and POs, which are fixed-income securities with a floating or variable rate of interest, may exhibit substantially greater price volatility than fixed rate obligations having similar credit quality, redemption provisions and maturity.

Other Investment Companies Risk

The Fund may invest in shares of other registered investment companies, including ETFs and money market funds. To the extent that the Fund invest in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses charged by the underlying funds in addition to the Fund’s direct fees and expenses and will be subject to the risks associated with investments in those funds.

20

American Beacon Garcia Hamilton Quality Bond Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Prepayment and Extension Risk

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

Redemption Risk

Due to a rise in interest rates or other market developments that may cause investors to move out of fixed income securities on a large scale, the Fund may experience periods of heavy redemptions that could cause the Fund to sell assets at inopportune times or at a loss or depressed value. Redemption risk is heightened during periods of declining or illiquid markets. Heavy redemptions could hurt the Fund’s performance.

Sector Risk

When the Fund focuses its investments in certain sectors of the economy, its performance may be driven largely by sector performance and could fluctuate more widely than if the Fund were invested more evenly across sectors.

To the extent the Fund invests in the financial services sector, the value of the Fund’s shares may be particularly vulnerable to factors affecting that sector, such as the availability and cost of capital funds, changes in interest rates, the rate of corporate and consumer debt defaults, extensive government regulation and price competition.

U.S. Government Securities and Government-Sponsored Enterprises Risk

A security backed by the U.S. Treasury or the full faith and credit of the United States is guaranteed by the applicable entity only as to the timely payment of interest and principal when held to maturity. The market prices for such securities are not guaranteed and will fluctuate. Securities held by the Fund that are issued by government-sponsored enterprises, such as the Fannie Mae, Freddie Mac, FHLB, FFCB, and the Tennessee Valley Authority are not guaranteed by the U.S. Treasury and are not backed by the full faith and credit of the U.S. Government and no assurance can be given that the U.S. Government will provide financial support if these organizations do not have the funds to meet future payment obligations. U.S. Government securities and securities of government sponsored entities are also subject to credit risk, interest rate risk and market risk.

6.  Federal Income and Excise Taxes

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

The Fund does not have any unrecorded tax liabilities in the accompanying financial statements. Each of the tax years in the two year period ended October 31, 2017 remain subject to examination by the Internal Revenue Service. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statement of Operations.

21

American Beacon Garcia Hamilton Quality Bond Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

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

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

As of April 30, 2018 the tax cost for the Fund and their respective gross unrealized appreciation (depreciation) were as follows:

Fund	Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Garcia Hamilton Quality Bond	$	147,906,106	$	323,356	$	(255,625	)	$	67,731

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

As of October 31, 2017, the Fund had $1,844,567 of short-term and $313,851 long-term post RIC MOD capital loss carryforwards.

7.  Investment Transactions

The aggregate cost of purchases and proceeds from sales and maturities of investments, other than short-term obligations, for the period ended April 30, 2018 were as follows:

Fund	Purchases (non-U.S. Government Securities)		Purchases of U.S. Government Securities		Sales (non-U.S. Government Securities)		Sales of U.S. Government Securities
Garcia Hamilton Quality Bond	$	5,775,410	$	46,078,261	$	4,290,742	$	58,926,166

A summary of the Fund’s transactions in the USG Select Fund for the period ended April 30, 2018 were as follows:

Fund	Type of Transaction		October 31, 2017 Shares/Fair Value		Purchases		Sales		April 30, 2018 Shares/Fair Value		Dividend Income
Garcia Hamilton Quality Bond		Direct	$	1,557,790	$	46,141,036	$	47,200,139	$	498,687	$	21,850

8.  Borrowing Arrangements

Effective November 16, 2017, the Fund, along with certain other funds managed by the Manager (“Participating Funds”), entered into a committed revolving line of credit (the “Committed Line”) agreement with State Street Bank and Trust Company (the “Bank”) to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Committed Line is $50 million with interest at a rate equal to the higher of (a) one-month London Inter-Bank Offered Rate (“LIBOR”) plus 1.25% per annum or (b) the Federal Funds rate plus 1.25% per annum on amounts borrowed. Each of the Participating Funds will pay a commitment fee at a rate of 0.25% per annum on the unused portion of the Committed Line amount. The Committed Line expires November 15, 2018, unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

22

American Beacon Garcia Hamilton Quality Bond Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Effective November 16, 2017, the Fund, along with certain other Participating Funds managed by the Manager, entered into an uncommitted discretionary demand revolving line of credit (the “Uncommitted Line”) agreement with the Bank to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Uncommitted Line is $50 million with interest at a rate equal to the higher of (a) one-month LIBOR plus 1.25% per annum or (b) the Federal Funds rate. The Uncommitted Line expires November 15, 2018 unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

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

During the period ended April 30, 2018, the Fund did not utilize this facility.

9.  Capital Share Transactions

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

	Institutional Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Garcia Hamilton Quality Bond Fund	Shares			Amount			Shares			Amount
Shares sold		1,438,545		$	14,197,592			2,836,854		$	27,939,755
Reinvestment of dividends		114,749			1,134,251			207,980			2,050,230
Shares redeemed		(1,257,682	)		(12,429,258	)		(2,086,333	)		(20,542,888	)
Net increase in shares outstanding		295,612		$	2,902,585			958,501		$	9,447,097
	Y Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Garcia Hamilton Quality Bond Fund	Shares			Amount			Shares			Amount
Shares sold		11,566		$	114,475			28,621		$	283,135
Reinvestment of dividends		2,485			24,548			4,616			45,481
Shares redeemed		(15,538	)		(154,150	)		(44,015	)		(430,968	)
Net (decrease) in shares outstanding		(1,487	)	$	(15,127	)		(10,778	)	$	(102,352	)
	Investor Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Garcia Hamilton Quality Bond Fund	Shares			Amount			Shares			Amount
Shares sold		139,571		$	1,378,568			249,891		$	2,460,626
Reinvestment of dividends		6,911			68,328			11,248			110,905
Shares redeemed		(58,435	)		(576,991	)		(140,498	)		(1,386,156	)
Net increase in shares outstanding		88,047		$	869,905			120,641		$	1,185,375

10.  Subsequent Events

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

23

American Beacon Garcia Hamilton Quality Bond Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Institutional Class
	Six Months Ended April 30, 2018			Year Ended October 31, 2017			April 4, 2016A to October 31, 2016
	(unaudited)
Net asset value, beginning of period	$	9.91		$	9.98		$	10.00
Income (loss) from investment operations:
Net investment income		0.08			0.14			0.05
Net (losses) on investments (both realized and unrealized)		(0.06	)		(0.05	)		(0.02	)
Total income (loss) from investment operations		0.02			0.09			0.03
Less distributions:
Dividends from net investment income		(0.08	)		(0.15	)		(0.05	)
Distributions from net realized gains		–			(0.01	)		–
Total distributions		(0.08	)		(0.16	)		(0.05	)
Net asset value, end of period	$	9.85		$	9.91		$	9.98
Total returnB		0.25	%C		0.91	%		0.34	%C
Ratios and supplemental data:
Net assets, end of period	$	134,786,871		$	132,575,412		$	124,032,604
Ratios to average net assets:
Expenses, before reimbursements		0.69	%D		0.70	%		1.06	%D
Expenses, net of reimbursements		0.45	%D		0.45	%		0.45	%D
Net investment income, before expense reimbursements		1.36	%D		1.12	%		0.29	%D
Net investment income, net of reimbursements		1.61	%D		1.37	%		0.91	%D
Portfolio turnover rate		48	%C		52	%		40	%E
	Y Class
	Six Months Ended April 30, 2018			Year Ended October 31, 2017			April 4, 2016A to October 31, 2016
	(unaudited)
Net asset value, beginning of period	$	9.90		$	9.98		$	10.00
Income (loss) from investment operations:
Net investment income		0.07			0.13			0.05
Net (losses) on investments (both realized and unrealized)		(0.04	)		(0.06	)		(0.02	)
Total income (loss) from investment operations		0.03			0.07			0.03
Less distributions:
Dividends from net investment income		(0.08	)		(0.14	)		(0.05	)
Distributions from net realized gains		–			(0.01	)		–
Total distributions		(0.08	)		(0.15	)		(0.05	)
Net asset value, end of period	$	9.85		$	9.90		$	9.98
Total returnB		0.30	%C		0.71	%		0.29	%C
Ratios and supplemental data:
Net assets, end of period	$	3,102,235		$	3,133,476		$	3,265,315
Ratios to average net assets:
Expenses, before reimbursements		0.74	%D		0.77	%		1.29	%D
Expenses, net of reimbursements		0.55	%D		0.55	%		0.55	%D
Net investment income, before expense reimbursements		1.32	%D		1.05	%		0.11	%D
Net investment income, net of reimbursements		1.51	%D		1.27	%		0.85	%D
Portfolio turnover rate		48	%C		52	%		40	%E

^A  Commencement of operations.

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

^C  Not annualized.

^D  Annualized.

^E  Portfolio turnover rate is for the period from April 4, 2016 through October 31, 2016 and is not annualized.

See accompanying notes

24

American Beacon Garcia Hamilton Quality Bond Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Investor Class
	Six Months Ended April 30, 2018			Year Ended October 31, 2017			April 4, 2016A to October 31, 2016
	(unaudited)
Net asset value, beginning of period	$	9.91		$	9.99		$	10.00
Income (loss) from investment operations:
Net investment income		0.06			0.10			0.03
Net (losses) on investments (both realized and unrealized)		(0.04	)		(0.06	)		(0.01	)
Total income (loss) from investment operations		0.02			0.04			0.02
Less distributions:
Dividends from net investment income		(0.07	)		(0.11	)		(0.03	)
Distributions from net realized gains		–			(0.01	)		–
Total distributions		(0.07	)		(0.12	)		(0.03	)
Net asset value, end of period	$	9.86		$	9.91		$	9.99
Total returnB		0.16	%C		0.43	%		0.24	%C
Ratios and supplemental data:
Net assets, end of period	$	10,540,412		$	9,724,030		$	8,594,617
Ratios to average net assets:
Expenses, before reimbursements		0.92	%D		0.94	%		1.19	%D
Expenses, net of reimbursements		0.83	%D		0.83	%		0.83	%D
Net investment income, before expense reimbursements		1.15	%D		0.89	%		0.21	%D
Net investment income, net of reimbursements		1.23	%D		0.99	%		0.57	%D
Portfolio turnover rate		48	%C		52	%		40	%E

^A  Commencement of operations.

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

^C  Not annualized.

^D  Annualized.

^E  Portfolio turnover rate is for the period from April 4, 2016 through October 31, 2016 and is not annualized.

See accompanying notes

25

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

Fund Service Providers:

CUSTODIAN State Street Bank and Trust Boston, Massachusetts TRANSFER AGENT DST Asset Manager Solutions Kansas City, Missouri INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Dallas, Texas DISTRIBUTOR Resolute Investment Distributors, Inc. Irving, Texas

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

American Beacon Funds and American Beacon Garcia Hamilton Quality Bond Fund are service marks of American Beacon Advisors, Inc.

SAR 04/18

About American Beacon Advisors

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

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

INTERNATIONAL EQUITY FUND RISKS

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 April 30, 2018

Contents

President’s Message	1
Performance Overview	2
Expense Examples	5
Schedule of Investments:
American Beacon International Equity Fund	7
Financial Statements	15
Notes to Financial Statements	19
Financial Highlights:
American Beacon International Equity Fund	39

  Additional Fund Information   Back Cover

President’s Message

Dear Shareholders,   Since 1986, American Beacon has endeavored to provide investors with a disciplined approach to realizing long-term investment goals: Institutional wisdom + earned alpha = enduring value.   u  We believe institutional wisdom comes from having more than 30 years of experience as manager of one of the country’s largest pension plans. As a fiduciary, we have built an investment due-diligence and oversight infrastructure, which we leverage across all our investment products. When selecting our investment managers, we focus on their people, processes and performance. We perform due-diligence reviews with each investment manager on a quarterly basis.   u  We believe earned alpha – that is, the returns of an actively managed fund beyond a benchmark – comes from employing and engaging

investment managers we believe are best-in-class and who have defined, repeatable and proven processes. Our experience has shown us that, while it’s important to be mindful of short-term considerations, having a long-term focus helps manage expectations, mitigate risks and realize goals. Thus, we seek relationships with leading investment managers who display a willingness to undertake time-intensive research strategies. The resulting investment portfolios are differentiated from their peers and allow incremental changes to help address periods of market volatility and economic uncertainty.

u We believe enduring value comes from “putting a portfolio in place and sticking with the plan.” Our mutual funds provide you with access to institutional-quality, research-intensive investment managers with diverse processes and styles. In the long run, having such access and spending time in the market – rather than trying to time the market – may better position you to reach your long-term investment goals.

The markets and U.S. economy were robust during calendar year 2017. However, during periods of market volatility and economic uncertainty – such as what we’ve seen thus far in 2018 – investing for the long term requires conviction. It isn’t about identifying and anticipating the next big market move. It’s about identifying the right investment products for riding out those moves. It’s about developing an approach based on long-term participation, while seeking some measure of protection against ongoing volatility.

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. Many of the sub-advisors to our mutual funds pursue upside capture and/or downside protection using proprietary strategies. 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 high quality and lower risk.

At American Beacon, our approach is more than a concept. It’s the cornerstone of our culture. And we strive to apply it at every turn as we seek to provide a well-diversified line of investment products for your portfolio.

Thank you for your continued interest in 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,

Gene L. Needles, Jr.

President

American Beacon Funds

1

American Beacon International Equity Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

The Investor Class of the American Beacon International Equity Fund (the “Fund”) returned 2.84% for the six months ended April 30, 2018. The Fund underperformed the MSCI EAFE Index (the “Index”) return of 3.41%.

Total Returns for the Period ended April 30, 2018
	Ticker	6 Months*			1 Year			3 Years			5 Years			10 Years
Institutional Class (1,8)	AAIEX		3.02	%		13.57	%		3.75	%		5.91	%		2.74	%
Y Class (1,2,8)	ABEYX		2.99	%		13.48	%		3.67	%		5.82	%		2.67	%
Investor Class (1,8)	AAIPX		2.84	%		13.19	%		3.39	%		5.54	%		2.39	%
Advisor Class (1,3,8)	AAISX		2.75	%		13.07	%		3.29	%		5.42	%		2.20	%
R6 Class (1,6,8)	AAERX		3.05	%		13.66	%		3.78	%		5.92	%		2.75	%
A without Sales Charge (1,4,8)	AIEAX		2.82	%		13.13	%		3.36	%		5.47	%		2.31	%
A with Sales Charge (1,4,8)	AIEAX		(3.10	)%		6.64	%		1.34	%		4.23	%		1.71	%
C without Sales Charge (1,5,8)	AILCX		2.46	%		12.26	%		2.57	%		4.68	%		1.71	%
C with Sales Charge (1,5,8)	AILCX		1.46	%		11.26	%		2.57	%		4.68	%		1.71	%
MSCI EAFE Index (7)			3.41	%		14.51	%		4.94	%		5.90	%		2.43	%

* Not annualized.

1. Performance shown is historical and is not indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is calculated based on the published end of day net asset values as of date indicated and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please visit www.americanbeaconfunds.com or call 1-800-967-9009. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only; and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights. A portion of the fees charged to the Institutional Class of the Fund was waived from 2013 through 2015. Performance prior to waiving fees was lower than actual returns shown from 2013 through 2015.

2. Fund performance for the ten-year period represents the total returns achieved by the Institutional Class from 4/30/08 up to 8/3/09, the inception date of the Y Class, and the returns of the Y Class since its inception. Expenses of the Y Class are higher than those of the Institutional Class. As a result, total returns shown may be higher than they would have been had the Y Class been in existence since 4/30/08.

3. A portion of the fees charged to the Advisor Class of the Fund was waived in 2007 and 2009. Performance prior to waiving fees was lower than the actual returns shown for these periods.

4. Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/08 up to 5/17/10, the inception date of the A Class, and the returns of the A Class since its inception. Expenses of the A Class are higher than those of the Investor Class. As a result, total returns shown may be higher than they would have been had the A Class been in existence since 4/30/08. A portion of the fees charged to the A Class of the Fund was waived from 2010 through 2012 and fully recovered in 2013. Performance prior to waiving fees was lower than the actual returns shown from 2010 through 2012. The maximum sales charge for A Class is 5.75%.

5. Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/08 up to 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the C Class are higher than those of the Investor Class. As a result, total returns shown may be higher than they would have been had the C Class been in existence since 4/30/08. A portion of the fees charged to the C Class of the Fund was waived from 2010 through 2012, partially recovered in 2013, and fully recovered in 2015. Performance prior to waiving fees was lower than the actual returns shown from 2010 through 2012. The maximum contingent deferred sales charge for C Class is 1.00% for shares redeemed within one year of the date of purchase.

6. Fund performance for the three-year, five-year and ten-year periods represent the returns achieved by the Institutional Class from 4/30/08 through 2/28/17, the inception date of the R6 Class, and the returns of the R6 Class since its inception. Expenses of the R6 Class are lower than those of the Institutional Class. As a result, total returns shown may be lower than they would have been had the R6 Class been in existence since 4/30/08. A portion of the fees charged to the R6 Class of the Fund has been waived since 2/28/17. Performance prior to waiving fees was lower than the actual returns shown.

7. The MSCI EAFE Index is a market capitalization weighted index of international stock performance composed of equities from developed markets excluding the U.S. and Canada. One cannot directly invest in an index.

8. The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, A, C, and R6 Class shares were 0.73%, 0.80%, 1.07%, 1.20%, 1.12%, 1.88% and 0.89%, 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.

2

American Beacon International Equity Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

The Fund underperformed the Index over the six-month period due to stock selection, while country allocation helped relative performance.

Stock selections within France and Hong Kong negatively contributed to the Fund’s relative performance over the six-month period, despite value gained through selections in Italy. The Fund was hurt by investments in Compagnie De Saint Gobain – down 12.8% and Michelin (CGDE) – down 2.9% within France, and from its investment in China Merchants Port Holdings – down 28.5% and China Mobile Ltd. – down 5.3% within Hong Kong. Better performing investments in Italy included Tenaris SA – up 38.0% and Unicredit SPA – up 14.3%.

Country allocation buoyed the Fund’s relative underperformance, particularly by overweighting the United Kingdom – up 5.4% and underweighting Australia – up 1.1%. Underweighting Japan – up 5.4% detracted value to the Fund’s relative performance during the period.

Although economic and market conditions vary from period to period, the Fund’s primary strategy of investing in undervalued companies with above-average earnings growth expectations remains consistent.

Top Ten Holdings (% Net Assets)
Novartis AG		2.2
Prudential PLC		2.0
British American Tobacco PLC		2.0
BP PLC		1.9
Royal Dutch Shell PLC, Class B		1.7
Volkswagen AG		1.7
Samsung Electronics Co., Ltd.		1.6
SAP SE		1.4
Barclays PLC		1.4
Shire PLC		1.4
Total Fund Holdings	164
Sector Allocation (% Equities)
Financials		19.3
Industrials		15.7
Health Care		11.7
Consumer Discretionary		10.2
Energy		10.1
Materials		9.0
Telecommunication Services		7.0
Consumer Staples		6.8
Information Technology		5.5
Utilities		2.8
Real Estate		1.9

3

American Beacon International Equity Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

Country Allocation (% Equities)
United Kingdom	21.2
Japan	15.8
Germany	10.2
France	9.4
Switzerland	7.4
Netherlands	6.9
Canada	5.1
Republic of Korea	3.6
United States	2.9
Denmark	2.0
Norway	1.7
Italy	1.6
Ireland	1.5
Sweden	1.5
Australia	1.5
Luxembourg	1.3
China	1.2
Singapore	1.1
Hong Kong	1.0
Belgium	0.9
Spain	0.8
Israel	0.5
Finland	0.5
Portugal	0.4

4

American Beacon International Equity Fund^SM

Expense Examples

April 30, 2018 (Unaudited)

Fund Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees, if applicable, and (2) ongoing costs, including management fees, distribution (12b-1) fees, sub-transfer agent fees, and other Fund expenses. The Examples are intended to help you understand the ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from November 1, 2017 through April 30, 2018.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

5

American Beacon International Equity Fund^SM

Expense Examples

April 30, 2018 (Unaudited)

American Beacon International Equity Fund
	Beginning Account Value 11/1/2017		Ending Account Value 4/30/2018		Expenses Paid During Period 11/1/2017-4/30/2018*
Institutional Class
Actual		$1,000.00		$1,030.20		$3.57
Hypothetical**		$1,000.00		$1,021.30		$3.56
Y Class
Actual		$1,000.00		$1,029.90		$3.93
Hypothetical**		$1,000.00		$1,020.90		$3.91
Investor Class
Actual		$1,000.00		$1,028.40		$5.23
Hypothetical**		$1,000.00		$1,019.60		$5.21
Advisor Class
Actual		$1,000.00		$1,027.50		$5.98
Hypothetical**		$1,000.00		$1,018.90		$5.96
A Class
Actual		$1,000.00		$1,028.20		$5.38
Hypothetical**		$1,000.00		$1,019.50		$5.36
C Class
Actual		$1,000.00		$1,024.60		$8.99
Hypothetical**		$1,000.00		$1,015.90		$8.95
R6 Class
Actual		$1,000.00		$1,030.50		$3.32
Hypothetical**		$1,000.00		$1,021.50		$3.31

* Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.71%, 0.78%, 1.04%, 1.19%, 1.07%, 1.79%, and 0.66% for the Institutional, Y, Investor, Advisor, A, C and R6 Classes, respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half-year period.

** 5% return before expenses.

6

American Beacon International Equity Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
Australia - 1.42%
Common Stocks - 1.42%
BHP Billiton PLCA		1,839,801		$	38,999,274
Caltex Australia Ltd.A		290,708			6,766,367
Total Common Stocks					45,765,641
Total Australia (Cost $35,685,034)					45,765,641
Belgium - 0.90%
Common Stocks - 0.90%
Anheuser-Busch InBev S.A.A B		164,722			16,309,025
UCB S.A.A B		166,830			12,572,029
Total Common Stocks					28,881,054
Total Belgium (Cost $30,783,004)					28,881,054
Canada - 4.89%
Common Stocks - 4.89%
Canadian Imperial Bank of Commerce		27,435			2,389,545
Canadian National Railway Co.		176,300			13,617,096
Canadian Pacific Railway Ltd.		118,945			21,703,676
Encana Corp.		1,750,647			21,802,131
Gildan Activewear, Inc.		453,405			13,207,171
Goldcorp, Inc.		603,600			8,010,704
Husky Energy, Inc.		990,800			13,859,393
Manulife Financial Corp.		1,290,783			24,358,949
National Bank of Canada		403,502			19,163,949
Suncor Energy, Inc.		211,395			8,084,033
Wheaton Precious Metals Corp.		539,500			11,198,002
Total Common Stocks					157,394,649
Total Canada (Cost $138,154,534)					157,394,649
China - 1.15%
Common Stocks - 1.15%
China Merchants Port Holdings Co., Ltd.A		2,543,068			5,682,223
China Mobile Ltd.A		3,303,776			31,418,688
Total Common Stocks					37,100,911
Total China (Cost $40,936,332)					37,100,911
Denmark - 1.92%
Common Stocks - 1.92%
AP Moller - Maersk A/S, Class BA		8,274			13,248,912
Carlsberg A/S, Class BA		153,388			17,149,517
Novozymes A/S, Class BA		209,264			9,865,707
Orsted A/SA C		171,288			11,266,896
Vestas Wind Systems A/SA		160,403			10,362,173
Total Common Stocks					61,893,205
Total Denmark (Cost $60,318,995)					61,893,205
Finland - 0.49% (Cost $13,594,396)
Common Stocks - 0.49%
Sampo OYJ, Class AA		292,130			15,713,795
France - 9.08%
Common Stocks - 9.08%
Air Liquide S.A.A		125,062			16,248,521
AXA S.A.A B		396,247			11,327,083

See accompanying notes

7

American Beacon International Equity Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
France - 9.08% (continued)
Common Stocks - 9.08% (continued)
BNP Paribas S.A.A		401,153		$	30,918,348
Capgemini SEA		142,171			19,512,098
Cie de Saint-GobainA		470,495			24,571,255
Cie Generale des Etablissements MichelinA		215,068			30,181,487
Credit Agricole S.A.A		417,175			6,854,002
Engie S.A.A		675,159			11,832,563
Safran S.A.A		155,144			18,195,403
SanofiA B		249,130			19,664,440
Schneider Electric SEA		270,226			24,409,470
Societe Generale S.A.A		241,590			13,233,096
TOTAL S.A.A		273,264			17,159,993
Valeo S.A.A		198,754			13,226,129
Veolia Environnement S.A.A		532,142			12,600,161
Vinci S.A.A		223,737			22,340,897
Total Common Stocks					292,274,946
Total France (Cost $237,617,061)					292,274,946
Germany - 9.77%
Common Stocks - 8.09%
BASF SEA		272,785			28,340,022
Bayer AGA		132,041			15,806,573
Deutsche Post AGA		228,440			9,947,579
Fresenius Medical Care AG & Co. KGaAA		74,382			7,574,541
Fresenius SE & Co. KGaAA		134,009			10,231,013
HeidelbergCement AGA		152,099			14,913,764
Infineon Technologies AGA		423,175			10,838,138
Innogy SEA C		234,560			10,338,805
LANXESS AGA		212,851			15,762,214
Linde AGA D		167,915			37,312,810
Merck KGaAA		142,635			13,966,749
SAP SEA		418,255			46,618,021
Siemens AGA		133,125			16,934,805
Telefonica Deutschland Holding AGA		3,058,649			14,614,231
thyssenkrupp AGA		278,560			7,264,367
Total Common Stocks					260,463,632
Preferred Stocks - 1.68%
Volkswagen AGA E		261,638			54,181,249
Total Germany (Cost $254,814,504)					314,644,881
Hong Kong - 0.97%
Common Stocks - 0.97%
AIA Group Ltd.A		613,462			5,477,094
CK Asset Holdings Ltd.A		1,171,582			10,099,841
CK Hutchison Holdings Ltd.A		1,330,582			15,714,985
Total Common Stocks					31,291,920
Total Hong Kong (Cost $25,980,957)					31,291,920
Ireland - 1.49%
Common Stocks - 1.49%
Bank of Ireland Group PLCA		1,832,639			16,431,065
CRH PLCA		343,611			12,183,512
Ryanair Holdings PLC, Sponsored ADRD		174,583			19,198,892
Total Common Stocks					47,813,469
Total Ireland (Cost $38,233,810)					47,813,469

See accompanying notes

8

American Beacon International Equity Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
Israel - 0.52% (Cost $26,337,710)
Common Stocks - 0.52%
Teva Pharmaceutical Industries Ltd., Sponsored ADR		933,999		$	16,793,302
Italy - 1.51%
Common Stocks - 1.51%
Eni SpAA		1,180,461			23,036,476
UniCredit SpAA		1,175,669			25,439,356
Total Common Stocks					48,475,832
Total Italy (Cost $37,402,828)					48,475,832
Japan - 15.25%
Common Stocks - 15.25%
Astellas Pharma, Inc.A		1,070,800			15,692,673
Daiwa House Industry Co., Ltd.A		876,854			32,129,635
Digital Garage, Inc.A B		285,000			9,405,110
Don Quijote Holdings Co., Ltd.A		664,600			35,784,025
East Japan Railway Co.A		270,600			25,950,389
Ezaki Glico Co., Ltd.A		144,800			7,805,713
IHI Corp.A		212,400			6,966,552
Inpex Corp.A		502,400			6,434,558
Isuzu Motors Ltd.A		949,800			14,526,773
Japan Airlines Co., Ltd.A		696,200			27,429,423
Kao Corp.A		223,760			16,063,242
KDDI Corp.A		1,697,100			45,559,638
Kirin Holdings Co., Ltd.A		696,500			19,523,360
Mitsui Fudosan Co., Ltd.A		614,300			15,750,286
Nexon Co., Ltd.A D		969,100			14,094,231
Omron Corp.A		145,300			7,860,915
Panasonic Corp.A		631,200			9,354,035
Ryohin Keikaku Co., Ltd.A		31,800			10,868,808
Seven & i Holdings Co., Ltd.A		177,600			7,801,416
SoftBank Group Corp.A		281,800			21,846,689
Sompo Holdings, Inc.A		411,400			17,254,000
Sony Corp.A		229,700			11,312,182
Sumitomo Metal Mining Co., Ltd.A		191,200			8,147,522
Sumitomo Mitsui Financial Group, Inc.A		732,300			30,394,336
Sumitomo Rubber Industries Ltd.A		285,700			5,109,181
Suntory Beverage & Food Ltd.A		215,300			10,594,070
Taiheiyo Cement Corp.A		126,700			4,797,724
Takeda Pharmaceutical Co., Ltd.A		564,100			23,714,611
United Arrows Ltd.A		200,300			7,370,049
Yamaha Corp.A		438,400			21,199,920
Total Common Stocks					490,741,066
Total Japan (Cost $403,369,898)					490,741,066
Luxembourg - 1.20%
Common Stocks - 1.20%
SES S.A.A B		1,044,083			16,099,865
Tenaris S.A.A		1,200,911			22,477,430
Total Common Stocks					38,577,295
Total Luxembourg (Cost $38,426,928)					38,577,295
Netherlands - 6.66%
Common Stocks - 6.66%
ABN AMRO Group N.V.A C		259,133			8,035,566
Aegon N.V.A		2,080,660			15,205,010

See accompanying notes

9

American Beacon International Equity Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
Netherlands - 6.66% (continued)
Common Stocks - 6.66% (continued)
Akzo Nobel N.V.A		403,366		$	36,310,473
ING Groep N.V.A		1,154,376			19,366,820
Royal Dutch Shell PLC, Class AA		1,161,183			40,359,978
Royal Dutch Shell PLC, Class BA		1,530,092			54,657,730
SBM Offshore N.V.A		668,578			11,196,556
Wolters Kluwer N.V.A		542,393			29,263,997
Total Common Stocks					214,396,130
Total Netherlands (Cost $166,489,480)					214,396,130
Norway - 1.67%
Common Stocks - 1.67%
Statoil ASAA		605,162			15,487,905
Telenor ASAA		1,195,067			26,430,805
Yara International ASAA		280,558			11,783,018
Total Common Stocks					53,701,728
Total Norway (Cost $43,038,187)					53,701,728
Portugal - 0.36% (Cost $9,288,394)
Common Stocks - 0.36%
Galp Energia SGPS S.A.A		600,018			11,491,273
Republic of Korea - 3.48%
Common Stocks - 3.48%
Hana Financial Group, Inc.A		472,142			20,985,886
KB Financial Group, Inc., ADR		270,917			15,279,719
Samsung Electronics Co., Ltd.A		21,464			52,655,316
SK Telecom Co., Ltd.A		108,207			23,129,759
Total Common Stocks					112,050,680
Total Republic of Korea (Cost $71,995,741)					112,050,680
Singapore - 1.10%
Common Stocks - 1.10%
DBS Group Holdings Ltd.A		977,210			22,574,685
Singapore Telecommunications Ltd.A		4,757,395			12,642,845
Total Common Stocks					35,217,530
Total Singapore (Cost $25,250,773)					35,217,530
Spain - 0.77%
Common Stocks - 0.77%
CaixaBank S.A.A		1,448,171			7,039,191
Red Electrica Corp. S.A.A		858,151			17,861,972
Total Common Stocks					24,901,163
Total Spain (Cost $22,036,368)					24,901,163
Sweden - 1.44%
Common Stocks - 1.44%
Alfa Laval ABA		219,767			5,452,860
Assa Abloy AB, Class BA		1,040,720			21,741,541
Getinge AB, Class BA B		483,082			4,498,216
Nordea Bank ABA		1,442,135			14,628,442
Total Common Stocks					46,321,059
Total Sweden (Cost $48,608,434)					46,321,059

See accompanying notes

10

American Beacon International Equity Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
Switzerland - 7.08%
Common Stocks - 7.08%
ABB Ltd.A		1,212,072		$	28,239,102
Aryzta AGA B D		332,801			7,007,244
Cie Financiere Richemont S.A.A		115,224			10,942,506
Ferguson PLCA		395,278			30,197,965
Givaudan S.A.A		4,535			10,109,785
Julius Baer Group Ltd.A D		224,513			13,328,562
Novartis AGA		918,192			70,623,810
Roche Holding AGA		157,787			35,006,902
UBS Group AGA D		720,258			12,101,372
Zurich Insurance Group AGA D		32,076			10,231,963
Total Common Stocks					227,789,211
Total Switzerland (Cost $227,422,987)					227,789,211
United Kingdom - 20.39%
Common Stocks - 20.39%
AstraZeneca PLCA		368,598			25,842,407
Aviva PLCA		3,443,537			25,033,517
BAE Systems PLCA		1,906,726			16,000,874
Balfour Beatty PLCA		2,737,620			11,064,157
Barclays PLCA		16,074,008			45,872,137
BP PLCA		8,307,510			61,378,897
British American Tobacco PLCA		1,171,120			64,355,675
BT Group PLCA		2,132,476			7,301,210
Cobham PLCA D		8,239,963			12,997,242
Compass Group PLCA		1,005,705			21,571,624
Diageo PLCA		632,694			22,504,790
GlaxoSmithKline PLCA		1,796,008			36,040,233
Howden Joinery Group PLCA		1,786,761			11,718,658
HSBC Holdings PLCA		1,634,824			16,317,323
Informa PLCA		1,656,527			16,829,794
Johnson Matthey PLCA		180,356			8,159,650
Kingfisher PLCA		3,516,999			14,652,228
Lloyds Banking Group PLCA		15,341,238			13,635,185
Melrose Industries PLCA		2,656,060			8,320,222
Micro Focus International PLCA		504,946			8,745,173
Prudential PLCA		2,550,246			65,407,091
Rolls-Royce Holdings PLC, C Shares EntitlementD		152,979,937			210,607
Rolls-Royce Holdings PLCA D		2,228,468			25,641,091
RSA Insurance Group PLCA		890,575			8,049,415
SSE PLCA		1,133,236			21,506,461
Standard Chartered PLCA		1,953,448			20,576,701
Travis Perkins PLCA		612,136			10,650,940
Unilever PLCA		375,654			21,051,036
Vodafone Group PLCA		11,969,965			34,828,326
Total Common Stocks					656,262,664
Total United Kingdom (Cost $634,321,622)					656,262,664
United States - 2.80%
Common Stocks - 2.80%
Aon PLC		170,599			24,305,240
Carnival PLCA		169,403			10,947,678
QIAGEN N.V.A D		274,583			9,024,921
Shire PLCA		860,348			45,721,373
Total Common Stocks					89,999,212
Total United States (Cost $82,299,509)					89,999,212

See accompanying notes

11

American Beacon International Equity Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
SHORT-TERM INVESTMENTS - 3.08% (Cost $98,921,991)
Investment Companies - 3.08%
American Beacon U.S. Government Money Market Select Fund, Select Class, 1.61%F G		98,921,991		$	98,921,991
SECURITIES LENDING COLLATERAL - 2.39% (Cost $76,904,490)
Investment Companies - 2.39%
American Beacon U.S. Government Money Market Select Fund, Select Class, 1.61%F G		76,904,490			76,904,490
TOTAL INVESTMENTS - 101.78% (Cost $2,888,233,967)					3,275,319,097
LIABILITIES, NET OF OTHER ASSETS - (1.78%)					(57,236,427	)
TOTAL NET ASSETS - 100.00%				$	3,218,082,670
Percentages are stated as a percent of net assets.

^A Fair valued pursuant to procedures approved by the Board of Trustees. At period end, the value of these securities amounted to $2,866,310,207 or 89.07% of net assets. Value was determined using significant unobservable inputs.

^B All or a portion of this security is on loan at April 30, 2018.

^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 $29,641,267 or 0.92% of net assets. The Fund has no right to demand registration of these securities.

^D Non-income producing security.

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

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

^G 7-day yield.

ADR - American Depositary Receipt.

PLC - Public Limited Company.

Futures Contracts Open on April 30, 2018:
Long Futures
Equity Futures Contracts
Description	Number of Contracts	Expiration Date	Notional Amount		Contract Value		Unrealized Appreciation (Depreciation)
Amsterdam Index Futures	28	May 2018	$	3,701,620	$	3,741,213	$	39,593
CAC40 Index Futures	173	May 2018		11,121,476		11,439,582		318,106
DAX Index Futures	26	June 2018		9,697,576		9,903,791		206,215
FTSE 100 Index Futures	176	June 2018		17,242,240		18,084,051		841,811
FTSE/MIB Index Futures	19	June 2018		2,573,862		2,708,553		134,691
Hang Seng Index Futures	19	May 2018		3,681,795		3,711,879		30,084
IBEX 35 Index Futures	27	May 2018		3,187,925		3,253,461		65,536
OMXS30 Index Futures	146	May 2018		2,537,283		2,613,405		76,122
S&P/TSX 60 Index Futures	63	June 2018		8,971,930		9,041,492		69,562
SPI 200 Futures	60	June 2018		6,697,190		6,755,150		57,960
TOPIX Index Futures	150	June 2018		23,511,961		24,393,420		881,459
			$	92,924,858	$	95,645,997	$	2,721,139

Forward Foreign Currency Contracts Open on April 30, 2018:
Currency Purchased*		Currency Sold*		Settlement Date		Counterparty		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
AUD	1,011,905	USD	1,014,706		6/8/2018		BNP	$	-	$	(2,801	)	$	(2,801	)
GBP	1,586,759	USD	1,595,835		6/8/2018		BOM		-		(9,076	)		(9,076	)
SEK	2,646,606	USD	2,818,894		6/8/2018		BOM		-		(172,288	)		(172,288	)
CAD	9,930,558	USD	9,835,963		6/8/2018		BOM		94,595		-			94,595
GBP	19,320,950	USD	19,505,955		6/8/2018		BOM		-		(185,005	)		(185,005	)
USD	2,649,727	CAD	2,600,946		6/8/2018		BOM		48,781		-			48,781
CHF	678,678	USD	710,316		6/8/2018		BRC		-		(31,638	)		(31,638	)
CHF	1,113,347	USD	1,115,106		6/8/2018		BRC		-		(1,759	)		(1,759	)

See accompanying notes

12

American Beacon International Equity Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

Currency Purchased*		Currency Sold*		Settlement Date		Counterparty		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
USD	5,300,979	GBP	5,121,517		6/8/2018		BRC	$	179,462	$	-		$	179,462
USD	755,513	AUD	727,561		6/8/2018		BRC		27,952		-			27,952
JPY	2,418,404	USD	2,496,944		6/8/2018		CBK		-		(78,540	)		(78,540	)
USD	2,904,218	EUR	2,816,339		6/8/2018		CBK		87,879		-			87,879
CAD	835,808	USD	833,364		6/8/2018		FBF		2,444		-			2,444
USD	7,442,927	JPY	7,302,989		6/8/2018		FBF		139,938		-			139,938
USD	2,606,437	JPY	2,522,781		6/8/2018		FBF		83,656		-			83,656
SEK	231,710	USD	246,546		6/8/2018		GSC		-		(14,836	)		(14,836	)
EUR	4,333,345	USD	4,342,300		6/8/2018		GSC		-		(8,955	)		(8,955	)
USD	2,239,040	CHF	2,170,476		6/8/2018		GSC		68,564		-			68,564
USD	265,214	SEK	247,586		6/8/2018		GSC		17,628		-			17,628
HKD	961,559	USD	965,488		6/8/2018		JPM		-		(3,929	)		(3,929	)
GBP	2,602,187	USD	2,631,161		6/8/2018		JPM		-		(28,974	)		(28,974	)
AUD	7,052,351	USD	7,265,853		6/8/2018		JPM		-		(213,502	)		(213,502	)
USD	1,602,351	CHF	1,514,416		6/8/2018		JPM		87,935		-			87,935
CAD	1,336,810	USD	1,332,966		6/8/2018		MYC		3,844		-			3,844
EUR	2,773,259	USD	2,838,465		6/8/2018		RBC		-		(65,206	)		(65,206	)
USD	804,484	SEK	777,119		6/8/2018		RBC		27,365		-			27,365
CHF	8,984,228	USD	9,519,879		6/8/2018		SCB		-		(535,651	)		(535,651	)
JPY	28,094,277	USD	29,122,646		6/8/2018		SOG		-		(1,028,369	)		(1,028,369	)
EUR	31,755,348	USD	32,565,963		6/8/2018		SOG		-		(810,615	)		(810,615	)
USD	941,668	CAD	945,034		6/8/2018		SOG		-		(3,366	)		(3,366	)
USD	81,132	JPY	81,149		5/7/2018		SSB		-		(17	)		(17	)
SEK	365,840	USD	369,887		6/8/2018		UAG		-		(4,047	)		(4,047	)
AUD	590,240	USD	611,073		6/8/2018		UAG		-		(20,833	)		(20,833	)
USD	9,195,798	EUR	8,989,496		6/8/2018		UAG		206,302		-			206,302
JPY	3,591,208	USD	3,588,187		6/8/2018		WBC		3,021		-			3,021
USD	1,922,906	AUD	1,864,814		6/8/2018		WBC		58,092		-			58,092
USD	1,840,473	GBP	1,820,855		6/8/2018		WBC		19,618		-			19,618
								$	1,157,076	$	(3,219,407	)	$	(2,062,331	)

* All values denominated in USD.

Glossary:
Counterparty Abbreviations:
BNP	BNP Paribas, N.A.
BOM	Bank of Montreal
BRC	Barclays Bank PLC
CBK	Citibank, N.A.
FBF	Credit Suisse International
GSC	Goldman Sachs Capital Markets
JPM	JPMorgan Chase Bank, N.A.
MYC	Morgan Stanley Bank, N.A.
RBC	Royal Bank of Canada
SCB	Standard and Chartered Bank
SOG	Societe Generale
SSB	State Street Bank & Trust Co.
UAG	UBS AG
WBC	Westpac Banking Corporation
Currency Abbreviations:
AUD	Australian Dollar
CAD	Canadian Dollar
CHF	Swiss Franc
EUR	Euro
GBP	Pound Sterling
HKD	Hong Kong Dollar
JPY	Japanese Yen
SEK	Swedish Krona
USD	United States Dollar

See accompanying notes

13

American Beacon International Equity Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

Index Abbreviations:
CAC40	Euronet Paris - French Stock Market Index
DAX	Deutsche Boerse AG German Stock Index
FTSE 100	Financial Times Stock Exchange 100 Index
FTSE/MIB	Borsa Italiana – Italian Stock Market Index
Hang Seng	Hong Kong Stock Market Index
IBEX	Bolsa de Madrid - Spanish Stock Market Index
OMXS30	Stockholm Stock Exchange’s leading share index
S&P	Standard & Poor’s
SPI 200	Australian Equity Market Index Future
TOPIX	Tokyo Stock Exchange Tokyo Price Index

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of April 30, 2018, the investments were classified as described below:

International Equity Fund	Level 1		Level 2			Level 3		Total
Assets
Foreign Common Stocks
Australia	$	-	$	45,765,641		$	-	$	45,765,641
Belgium		-		28,881,054			-		28,881,054
Canada		157,394,649		-			-		157,394,649
China		-		37,100,911			-		37,100,911
Denmark		-		61,893,205			-		61,893,205
Finland		-		15,713,795			-		15,713,795
France		-		292,274,946			-		292,274,946
Germany		-		260,463,632			-		260,463,632
Hong Kong		-		31,291,920			-		31,291,920
Ireland		19,198,892		28,614,577			-		47,813,469
Israel		16,793,302		-			-		16,793,302
Italy		-		48,475,832			-		48,475,832
Japan		-		490,741,066			-		490,741,066
Luxembourg		-		38,577,295			-		38,577,295
Netherlands		-		214,396,130			-		214,396,130
Norway		-		53,701,728			-		53,701,728
Portugal		-		11,491,273			-		11,491,273
Republic of Korea		15,279,719		96,770,961			-		112,050,680
Singapore		-		35,217,530			-		35,217,530
Spain		-		24,901,163			-		24,901,163
Sweden		-		46,321,059			-		46,321,059
Switzerland		-		227,789,211			-		227,789,211
United Kingdom		210,607		656,052,057			-		656,262,664
Foreign Preferred Stocks
Germany		-		54,181,249			-		54,181,249
Common Stocks
United States		24,305,240		65,693,972			-		89,999,212
Short-Term Investments		98,921,991		-			-		98,921,991
Securities Lending Collateral		76,904,490		-			-		76,904,490
Total Investments in Securities - Assets	$	409,008,890	$	2,866,310,207		$	-	$	3,275,319,097
Financial Derivative Instruments - Assets
Futures Contracts	$	2,721,139	$	-		$	-	$	2,721,139
Forward Foreign Currency Contracts		-		1,157,076			-		1,157,076
Total Financial Derivative Instruments - Assets	$	2,721,139	$	1,157,076		$	-	$	3,878,215
Financial Derivative Instruments - Liabilities
Forward Foreign Currency Contracts	$	-	$	(3,219,407	)	$	-	$	(3,219,407	)
Total Financial Derivative Instruments - Liabilities	$	-	$	(3,219,407	)	$	-	$	(3,219,407	)

U.S. GAAP requires all transfers between any levels to be disclosed. The end of period timing recognition has been adopted for the transfers between levels of the Fund’s assets and liabilities. During the period ended April 30, 2018, there were transfers from Level 1 to Level 2, with fair value of 2,674,005,606 as a result of a determination made by the Valuation Committee that adjustments should be applied to certain international securities due to significant movement in the market.

See accompanying notes

14

American Beacon International Equity Fund^SM

Statement of Assets and Liabilities

April 30, 2018 (Unaudited)

Assets:
Investments in unaffiliated securities, at fair value†§	$	3,099,492,616
Investments in affiliated securities, at fair value‡		175,826,481
Foreign currency, at fair value^		442,551
Deposit with brokers for futures contracts		9,299,430
Dividends and interest receivable		13,248,176
Receivable for investments sold		2,476,423
Receivable for fund shares sold		4,730,412
Receivable for tax reclaims		3,955,604
Receivable for expense reimbursement (Note 2)		182
Receivable for variation margin on open futures contracts (Note 5)		2,752,495
Unrealized appreciation from forward foreign currency contracts		1,157,076
Prepaid expenses		106,180
Total assets		3,313,487,626
Liabilities:
Payable for investments purchased		7,863,970
Payable for fund shares redeemed		2,851,810
Foreign currency deposits with brokers for futures contracts, at fair value¤		563,677
Payable upon return of securities loaned (Note 9)§		76,904,490
Management and sub-advisory fees payable (Note 2)		3,237,721
Service fees payable (Note 2)		123,824
Transfer agent fees payable (Note 2)		177,720
Custody and fund accounting fees payable		299,687
Professional fees payable		52,124
Trustee fees payable (Note 2)		2,539
Payable for prospectus and shareholder reports		56,226
Unrealized depreciation from forward foreign currency contracts		3,219,407
Other liabilities		51,761
Total liabilities		95,404,956
Net assets	$	3,218,082,670
Analysis of net assets:
Paid-in-capital	$	2,703,709,133
Undistributed net investment income		25,083,268
Accumulated net realized gain		101,774,086
Unrealized appreciation of investments in unaffiliated securitiesA		387,085,130
Unrealized (depreciation) of foreign currency transactions		(227,755	)
Unrealized (depreciation) of forward foreign currency contracts		(2,062,331	)
Unrealized appreciation of futures contracts		2,721,139
Net assets	$	3,218,082,670

See accompanying notes

15

American Beacon International Equity Fund^SM

Statement of Assets and Liabilities

April 30, 2018 (Unaudited)

Shares outstanding at no par value (unlimited shares authorized):
Institutional Class		84,273,895
Y Class		48,775,912
Investor Class		14,808,614
Advisor Class		2,680,763
A Class		834,632
C Class		384,432
R6 Class		852,071
Net assets:
Institutional Class	$	1,757,096,258
Y Class	$	1,055,549,611
Investor Class	$	306,076,124
Advisor Class	$	56,667,591
A Class	$	17,235,243
C Class	$	7,682,491
R6 Class	$	17,775,352
Net asset value, offering and redemption price per share:
Institutional Class	$	20.85
Y Class	$	21.64
Investor Class	$	20.67
Advisor Class	$	21.14
A Class	$	20.65
A Class (offering price)	$	21.91
C Class	$	19.98
R6 Class	$	20.86
† Cost of investments in unaffiliated securities	$	2,712,407,486
‡ Cost of investments in affiliated securities	$	175,826,481
§ Fair value of securities on loan	$	72,836,542
¤ Cost of foreign currency deposits with broker for futures contracts	$	606,748
^ Cost of foreign currency	$	452,795
A The Fund’s investments in affiliated securities did not have unrealized appreciation (depreciation) at period end.

See accompanying notes

16

American Beacon International Equity Fund^SM

Statement of Operations

For the period ended April 30, 2018 (Unaudited)

Investment income:
Dividend income from unaffiliated securities (net of foreign taxes)†	$	40,919,924
Dividend income from affiliated securities (Note 8)		685,679
Income derived from securities lending (Note 9)		409,960
Total investment income		42,015,563
Expenses:
Management and sub-advisory fees (Note 2)		9,667,793
Transfer agent fees:
Institutional Class (Note 2)		285,322
Y Class (Note 2)		522,349
Investor Class		7,413
Advisor Class		1,292
A Class		2,375
C Class		948
R6 Class		856
Custody and fund accounting fees		407,817
Professional fees		80,389
Registration fees and expenses		81,237
Service fees (Note 2):
Investor Class		562,800
Advisor Class		69,678
A Class		11,169
C Class		2,899
Distribution fees (Note 2):
Advisor Class		69,678
A Class		22,090
C Class		37,770
Prospectus and shareholder report expenses		142,063
Trustee fees (Note 2)		94,629
Other expenses		203,380
Total expenses		12,273,947
Net fees waived and expenses (reimbursed) (Note 2)		(2,346	)
Net expenses		12,271,601
Net investment income		29,743,962
Realized and unrealized gain (loss) from investments:
Net realized gain from:
Investments in unaffiliated securitiesA		116,287,335
Commission recapture (Note 1)		18,178
Foreign currency transactions		406,703
Forward foreign currency contracts		158,459
Futures contracts		482,810
Change in net unrealized appreciation (depreciation) of:
Investments in unaffiliated securitiesB		(54,760,562	)
Foreign currency transactions		(92,369	)
Forward foreign currency contracts		884,515
Futures contracts		(1,813,091	)
Net gain from investments		61,571,978
Net increase in net assets resulting from operations	$	91,315,940
† Foreign taxes	$	4,262,058
A The Fund did not recognize net realized gains (losses) from the sale of investments in affiliated securities.
B The Fund’s investments in affiliated securities did not have a change in unrealized appreciation (depreciation) at period end.

See accompanying notes

17

American Beacon International Equity Fund^SM

Statement of Changes in Net Assets

	Six Months Ended April 30, 2018			Year Ended October 31, 2017
	(unaudited)
Increase (decrease) in net assets:
Operations:
Net investment income	$	29,743,962		$	53,998,740
Net realized gain from investments in unaffiliated securities, commission recapture, foreign currency transactions, forward foreign currency contracts, and futures contracts		117,353,485			122,355,671
Change in net unrealized appreciation (depreciation) of investments in unaffiliated securities, foreign currency transactions, forward foreign currency contracts, and futures contracts		(55,781,507	)		393,563,481
Net increase in net assets resulting from operations		91,315,940			569,917,892
Distributions to shareholders:
Net investment income:
Institutional Class		(27,503,626	)		(34,791,829	)
Y Class		(16,027,444	)		(18,973,818	)
Investor Class		(4,127,579	)		(7,051,311	)
Advisor Class		(722,996	)		(456,420	)
A Class		(216,006	)		(472,655	)
C Class		(46,381	)		(111,074	)
R6 Class		(187,943	)		-
Net realized gain from investments:
Institutional Class		(24,354,717	)		-
Y Class		(14,768,795	)		-
Investor Class		(4,628,528	)		-
Advisor Class		(793,726	)		-
A Class		(266,745	)		-
C Class		(109,427	)		-
R6 Class		(163,332	)		-
Net distributions to shareholders		(93,917,245	)		(61,857,107	)
Capital share transactions (Note 11):
Proceeds from sales of shares		399,028,256			775,385,640
Reinvestment of dividends and distributions		86,428,547			57,320,154
Cost of shares redeemed		(342,693,037	)		(913,700,486	)
Net increase (decrease) in net assets from capital share transactions		142,763,766			(80,994,692	)
Net increase in net assets		140,162,461			427,066,093
Net assets:
Beginning of period		3,077,920,209			2,650,854,116
End of period *	$	3,218,082,670		$	3,077,920,209
*Includes undistributed net investment income	$	25,083,268		$	44,171,281

See accompanying notes

18

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

1.  Organization and Significant Accounting Policies

American Beacon Funds (the “Trust”), is organized as a Massachusetts business trust. The Fund, a series within the Trust, is registered under the Investment Company Act of 1940 (the “Act”), as amended, as a diversified, open-end management investment company. As of April 30, 2018, the Trust consists of thirty-three active series, one of which is presented in this filing: American Beacon International Equity Fund (the “Fund”). The remaining thirty-two active series are reported in separate filings.

American Beacon Advisors, Inc. (the “Manager”) is a wholly-owned subsidiary of Resolute Investment Managers, Inc., which is indirectly owned by investment funds affiliated with Kelso & Company, L.P. and Estancia Capital Management, LLC, and was organized in 1986 to provide business management, advisory, administrative, and asset management consulting services to the Trust and other investors.

Class Disclosure

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

Class	Eligible Investors	Minimum Initial Investments
Institutional	Large institutional investors – sold directly or through intermediary channels.	$	250,000
Y Class	Large institutional retirement plan investors – sold directly or through intermediary channels.	$	100,000
Investor	All investors using intermediary organizations, such as broker-dealers or retirement plan sponsors.	$	2,500
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
R6 Class	Large institutional retirement plan investors – sold through retirement plan sponsors.		None

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 on the basis of 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 Financial Accounting Standards Board Accounting Standard Codification Topic 946, Financial Services – Investment Companies, a part of Generally Accepted Accounting Principles (“U.S. GAAP”).

19

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Security Transactions and Investment Income

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

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

Currency Translation

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

Distributions to Shareholders

Distributions, if any, of net investment income are generally paid at least annually and recorded on the ex-dividend date. Distributions, if any, of net realized capital gains are generally paid at least annually and recorded on the ex-dividend date. 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 a Fund’s investment advisor chooses to execute a transaction through a participating broker, the broker rebates a portion of the commission back to the Fund. Any collateral benefit received through participation in the commission recapture program is directed exclusively to the Fund. This amount is reported with the net realized gain in the Fund’s Statement of Operations, if applicable.

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 any 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.

20

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Other

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

2.  Transactions with Affiliates

Management and Investment Sub-Advisory Agreements

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

First $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 Causeway Capital Management LLC; Lazard Asset Management LLC; and Templeton Investment Counsel, LLC (“Sub-Advisors”) 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 period ended April 30, 2018 were as follows:

	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.35	%	$	5,561,678
Sub-Advisor Fees		0.27	%		4,106,115
Total		0.62	%	$	9,667,793

As compensation for services provided by the Manager in connection with securities lending activities conducted by the Fund, the lending Fund pays to the Manager, with respect to cash collateral posted by borrowers, a fee up to 10% of the net monthly interest income (the gross interest income earned by the investment of cash collateral, less the amount paid to borrowers and related expenses) from such activities and, with respect to loan fees paid by borrowers, a fee up to 10% of such loan fees. These fees are included in “Income derived from securities lending” and “Management and investment advisory fees” on the Statement of Operations. During the period ended April 30, 2018, the Manager received securities lending fees of $42,576 for the securities lending activities of the Fund.

Distribution Plans

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

21

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

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 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 Service Plans that obligate 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 Plans, 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.

Sub-Transfer Agent Fees

The Manager has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Institutional and Y Classes of the Fund and has agreed to compensate the intermediaries for providing these services. Intermediaries transact with the Fund primarily through the use of omnibus accounts on behalf of their customers who hold positions in the Fund. Certain services would have been provided by the Fund’s transfer agent and other service providers if the shareholders’ accounts were maintained directly by the Fund’s transfer agent. Accordingly, the Fund, pursuant to Board approval, has agreed to reimburse the Manager for certain non-distribution shareholder services provided by financial intermediaries for the Institutional and Y Classes. The reimbursement amounts (sub-transfer agent fees) paid to the Manager are subject to a fee limit of up to 0.10% of an intermediary’s average net assets in the Institutional and Y Classes on an annual basis. During the period ended April 30, 2018, the sub-transfer agent fees, as reflected in “Transfer agent fees” on the Statement of Operations, were as follows:

Fund	Sub-Transfer Agent Fees
International Equity	$	759,494

As of April 30, 2018, 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
International Equity	$	146,737

Investments in Affiliated Funds

The Fund may invest in the American Beacon U.S. Government Money Market Select Fund (the “USG Select Fund”). Cash collateral received by the Fund in connection with securities lending may also be invested in the USG Select Fund. The Fund and the USG Select Fund have the same investment advisor and therefore, are considered to be affiliated. The Manager serves as investment advisor to the USG Select Fund and receives management fees and administrative fees totaling 0.10% of the average daily net assets of the USG Select Fund. During the period ended April 30, 2018, 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 in USG Select Fund		Total
International Equity	$	54,862	$	12,592	$	67,454

22

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Interfund Credit Facility

Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), the Fund, along with other registered investment companies having management contracts with the Manager, may participate in a credit facility whereby each Fund, under certain conditions, is permitted to lend money directly to and borrow directly from other participating Funds for temporary purposes. The interfund credit facility is advantageous to the Fund because it provides added liquidity, and eliminates the need to maintain higher cash balances to meet redemptions. This situation could arise when shareholder redemptions exceed anticipated volumes and certain funds have insufficient cash on hand to satisfy such redemptions or when sales of securities do not settle as expected, resulting in a cash shortfall for a fund. When a Fund liquidates portfolio securities to meet redemption requests, they often do not receive payment in settlement for up to two days (or longer for certain foreign transactions). Redemption requests normally are satisfied on the next business day. The credit facility provides a source of immediate, short-term liquidity pending settlement of the sale of portfolio securities. The credit facility is administered by a credit facility team consisting of professionals from the Manager’s asset management, compliance, and accounting areas who report the activities of the credit facility to the Board. During the period ended April 30, 2018, the Fund did not utilize the credit facility.

Expense Reimbursement Plan

The Manager voluntarily agreed to reduce fees and/or reimburse expenses for the R6 Class of the Fund to the extent that total operating expenses exceed the expense cap. During the period ended April 30, 2018, the Manager waived and/or reimbursed expenses as follows:

Fund	Class		Expense Cap			Reimbursed Expenses		(Recouped) Expenses		Expiration of Reimbursed Expenses
			11/1/2017 - 4/30/2018
International Equity		R6		0.66	%	$	2,346	$	-		2021

Of these amounts, $182 was disclosed as a receivable from the Manager on the Statement of Assets and Liabilities at April 30, 2018. The Fund has adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of such fee reductions and expense reimbursements. Under the policy, the Manager can be reimbursed by the Fund for any contractual or voluntary fee reductions or expense reimbursements if reimbursement to the Manager (a) occurs within three years after the Manager’s own waiver or reimbursement and (b) does not cause the Fund’s annual operating expenses to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or time of recoupment. The reimbursed expenses listed above will expire in 2021. The carryover of excess expenses potentially reimbursable to the Manager are as follows:

Fund	Recouped Expenses		Excess Expense Carryover		Expired Expense Carryover		Expiration of Reimbursed Expenses
International Equity	$	-	$	3,001	$	-		2020

The Distributor

Effective March 1, 2018, Resolute Investment Distributors, Inc. (“RID” or “Distributor”) replaced Foreside Fund Services, LLC (“Foreside”) as the Fund(s)’ distributor and principal underwriter of the Fund’s shares.

RID is a registered broker-dealer and is a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”). The Distributor is affiliated with the Manager through common ownership. Under a Distribution Agreement with the Trust, the Distributor acts as the distributor and principal underwriter of the Trust in connection with the continuous offering of shares of the Fund. The Distributor continually distributes shares of the Fund on a best efforts basis. The Distributor has no obligation to sell any specific quantity of the Fund’s shares. Pursuant to the Distribution Agreement, to the extent applicable, the Distributor receives, and may re-allow to

23

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

broker-dealers, all or a portion of the sales charge paid by the purchasers of A Class and C Class shares. For A Class and C Class shares, the Distributor receives commission revenue consisting of the portion of A Class and C Class sales charge remaining after the allowances by the Distributor to the broker-dealers. The Distributor retains any portion of the commission fees that are not paid to the broker-dealers for use solely to pay distribution related expenses.

Prior to March 1, 2018, Foreside served as the distributor and principal underwriter of the Fund’s shares. Pursuant to a Sub-Administration Agreement between Foreside and the Manager in effect through February 28, 2018, Foreside received a fee from the Manager for providing administrative services in connection with the marketing and distribution of shares of the Trust, including the registration of Manager employees as registered representatives of Foreside to facilitate distribution of Fund shares. Foreside also received a fee from the Manager under a Marketing Agreement pursuant to which Foreside provided services in connection with the marketing of a Fund to institutional investors. Pursuant to the Distribution Agreement with the Trust in effect through February 28, 2018, Foreside received, and may have re-allowed to broker-dealers, all or a portion of the sales charge paid by the purchasers of A and C Class shares. For A and C Class shares, Foreside received commission revenues consisting of the portion of A and C Class sales charge remaining after the allowances by Foreside to the broker dealers. Foreside retained any portion of the commission fees that were not paid to the broker-dealers for use solely to pay distribution related expenses.

Sales Commissions

The Fund’s Distributor, formerly Foreside, may receive a portion of A Class sales charges from broker dealers and it may be used to offset distribution related expenses. During the period ended February 28, 2018, Foreside collected $3,091 for the Fund from the sale of Class A Shares. During the period March 1, 2018 through April 30, 2018, RID collected $115 for the Fund from the sale of Class A Shares.

A CDSC of 0.50% will be deducted with respect to Class A Shares on certain purchases of $1,000,000 or more that are redeemed in whole or part within 18 months of purchase, unless waived as discussed in the Fund’s Prospectus. Any applicable CDSC will be 0.50% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended April 30, 2018, there were no CDSC fees collected for Class A Shares of the Fund.

A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived as discussed in the Fund’s Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended February 28, 2018, Foreside collected CDSC fees of $32 for Class C Shares of the Fund. During the period March 1, 2018 through April 30, 2018, RID collected $9 for Class C Shares of the Fund.

Trustee Fees and Expenses

As compensation for their service to the Trust, American Beacon Select Funds, the American Beacon Institutional Funds Trust, and American Beacon Sound Point Enhanced Income Fund, each Trustee receives an annual retainer of $120,000, plus $10,000 for each Board meeting attended in person or via teleconference, $2,500 for attendance by Committee members at meetings of the Audit Committee and the Investment Committee, and $1,500 for attendance by Committee members at meetings of the Nominating and Governance Committee, plus reimbursement of reasonable expenses incurred in attending Board meetings, Committee meetings, and relevant educational seminars. The Trustees also may be compensated for attendance at special Board and/or Committee meetings from time to time. The Board Chairman receives an additional annual retainer of $50,000 as well as a $2,500 fee each quarter for his attendance at the committee meetings. Effective January 1, 2018, the Board Vice Chair receives an additional annual retainer of $10,000. The Chairpersons of the Audit Committee and the Investment Committee each receive an additional annual retainer of $25,000 and the Chairman of the Nominating and Governance Committee receives an additional annual retainer of $10,000. These expenses are allocated on a prorated basis to each Fund of the Trusts according to its respective net assets.

24

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

3.  Security Valuation and Fair Value Measurements

The price of the Fund’s shares is based on the Fund’s Net Asset Value (“NAV”). The NAV of the Fund, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Fund or class, by the total number of shares outstanding of the Fund or class.

Investments are valued at the close of the New York Stock Exchange (the “Exchange”), normally at 4:00 p.m. Eastern Time, each day that the Exchange is open for business. Equity securities, including exchange-traded funds (“ETFs”) for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade.

Investments in open-end mutual funds are valued at the closing NAV per share of the mutual fund on the day of valuation.

Securities for which the market prices are not readily available or are not reflective of the fair value of the security, as determined by the Manager, will be priced at fair value following procedures approved by the Board.

For valuation purposes, the last quoted prices of non-U.S. equity securities may be adjusted under the circumstances described below. If the Manager determines that developments between the close of a foreign market and the close of the Exchange will, in its judgment, materially affect the value of some or all of a Fund’s portfolio securities, the Manager will 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. In addition, 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. Eastern Time. 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. These securities are fair valued using a pricing service and are categorized as Level 2 in the fair value hierarchy. The pricing service, using methods approved by the Board, 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 Depository Receipts (“ADR”) and futures contracts. The Valuation Committee, established by the Board, may also fair value securities in other situations, such as when a particular foreign market is closed but a 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.

Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to deposit with their futures broker, an amount of cash or U.S. Government and Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked-to-market daily and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized, but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statement of Assets and Liabilities.

Forward foreign currency contracts are valued using the prevailing forward exchange rate and are categorized as Level 2 in the fair value hierarchy. Forward foreign currency contracts involve, to varying degrees, risk of loss in excess of the unrealized appreciation (depreciation) on the Statement of Assets and Liabilities.

25

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Other investments for which the above valuation procedures are inappropriate or are deemed not to reflect fair value, are stated at fair value as determined in good faith by the Manager’s Valuation Committee, pursuant to procedures established by the Board.

Valuation Inputs

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

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

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

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

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

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

4.  Securities and Other Investments

American Depositary Receipts

ADRs are depositary receipts for foreign issuers in registered form traded in U.S. securities markets. Depositary receipts may not be denominated in the same currency as the securities into which they may be converted. Investing in depositary receipts entails substantially the same risks as direct investment in foreign securities. There is generally less publicly available information about foreign companies and there may be less governmental regulation and supervision of foreign stock exchanges, brokers, and listed companies. In addition, such companies may use different accounting and financial standards (and certain currencies may become

26

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

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

Common Stock

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

Foreign Securities

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

Illiquid and Restricted Securities

The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities may be sold privately, but are required to be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933 (the “Securities Act”). Illiquid securities have included securities that have not been registered under the Securities Act, securities that are otherwise not readily marketable, and repurchase agreements having a remaining maturity of longer than seven calendar days. Disposal of both illiquid and restricted securities may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted securities outstanding during the period ended April 30, 2018 are disclosed in the Fund’s Notes to the Schedule of Investments.

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

27

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Other Investment Company Securities and Other Exchange-Traded Products

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

Preferred Stock

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

Rights and Warrants

Rights are short-term warrants issued in conjunction with new stock or bond issues. Warrants are options to purchase an issuer’s securities at a stated price during a stated term. If the market price of the underlying common stock does not exceed the warrant’s exercise price during the life of the warrant, the warrant will expire worthless. Warrants usually have no voting rights, pay no dividends and have no rights with respect to the assets of the corporation issuing them. The percentage increase or decrease in the value of a warrant may be greater than the percentage increase or decrease in the value of the underlying common stock. Warrants may be purchased with values that vary depending on the change in value of one or more specified indices (“index warrants”). Index warrants are generally issued by banks or other financial institutions and give the holder the right, at any time during the term of the warrant, to receive upon exercise of the warrant a cash payment from the issuer based on the value of the underlying index at the time of the exercise. The market for warrants or rights may be very limited and it may be difficult to sell them promptly at an acceptable price. There is no specific limit on the percentage of assets the Fund may invest in rights and warrants.

5.  Financial Derivative Instruments

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

Forward Foreign Currency Contracts

The Fund may enter into forward foreign currency contracts to hedge the exchange rate risk on investment transactions or to hedge the value of the Fund’s securities denominated in foreign currencies. Forward foreign currency contracts are valued at the forward exchange rate prevailing on the day of valuation. The Fund may also use currency contracts to increase exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one country to another. The Fund bears the market risk that arises from changes in foreign exchange rates, and accordingly, the unrealized gain (loss) on these contracts is reflected in the accompanying financial statements. The Fund also bears the credit risk if the counterparty fails to perform under the contract.

28

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

During the period ended April 30, 2018, the Fund entered into forward foreign currency contracts primarily for hedging foreign currency fluctuations.

The Fund’s forward foreign currency contract notional dollar values outstanding fluctuate throughout the operating year as required to meet strategic requirements. The following table illustrates the average quarterly volume of forward foreign currency contracts. For the purpose of this disclosure, volume is measured by the amounts bought and sold in USD at each quarter end.

Average Forward Foreign Currency Notional Amounts Outstanding Period Ended April 30, 2018
Fund	Purchased Contracts		Sold Contracts
International Equity	$	146,824,706	$	37,111,858

Futures Contracts

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

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

During the period ended April 30, 2018, the Fund entered into future contracts primarily for exposing cash to markets.

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

Average Futures Contracts Outstanding
Fund	Period Ended April 30, 2018
International Equity		1,046

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

Fair values of financial instruments on the Statement of Assets and Liabilities as of April 30, 2018:
	Derivatives not accounted for as hedging instruments
Assets:	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts			Total
Unrealized appreciation of forward foreign currency contracts		$	-		$	1,157,076		$	-		$	-		$	-		$	1,157,076
Receivable for variation margin from open futures contracts(2)			-			-			-			-			2,721,139			2,721,139

29

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Liabilities:	Credit contracts			Foreign exchange contracts				Commodity contracts			Interest rate contracts			Equity contracts				Total
Unrealized depreciation of forward foreign currency contracts		$	-		$	(3,219,407	)		$	-		$	-		$	-			$	(3,219,407	)
The effect of financial derivative instruments on the Statement of Operations as of April 30, 2018:
	Derivatives not accounted for as hedging instruments
Realized gain (loss) from derivatives recognized as a result of operations	Credit contracts			Foreign exchange contracts				Commodity contracts			Interest rate contracts			Equity contracts				Total
Forward foreign currency contracts		$	-		$	158,459			$	-		$	-		$	-			$	158,459
Futures contracts			-			-				-			-			482,810				482,810
Net change in unrealized appreciation (depreciation) of derivatives recognized as a result from operations:	Credit contracts			Foreign exchange contracts				Commodity contracts			Interest rate contracts			Equity contracts				Total
Forward foreign currency contracts		$	-		$	884,515			$	-		$	-		$	-			$	884,515
Futures contracts			-			-				-			-			(1,813,091	)			(1,813,091	)

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

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

Master Agreements

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as delayed delivery or sale-buyback financing transactions by and between a Fund and select counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

6. Principal Risks

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

Counterparty Risk

The Fund is subject to the risk that a party or participant to a transaction, such as a broker or derivative counterparty, will be unwilling or unable to satisfy its obligation to make timely principal, interest or settlement payments or to otherwise honor its obligations to the Fund.

Currency Risk

The Fund may have exposure to foreign currencies by making direct investments in non-U.S. currencies, in securities denominated in non-U.S. currencies or by purchasing or selling forward foreign currency exchange contracts in non-U.S. currencies. Foreign currencies will fluctuate, and may decline in value relative to the U.S. dollar and other currencies and thereby affect the Fund’s investments in foreign (non-U.S.) currencies or in securities that traded in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Derivatives Risk

Derivatives may involve significant risk. The use of derivative instruments may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities or other instruments underlying those

30

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

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

Equity Investment Risk

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

Foreign Investing Risk

The Fund may invest in securities issued by foreign companies through ADRs and U.S. dollar-denominated foreign stocks traded on U.S. exchanges. The Fund may also invest in local currency investments. ADRs are subject to many of the risks inherent in currency fluctuations and political and financial instability in the home country of a particular ADR or foreign stock. Non-U.S. investments carry potential risks not associated with U.S. investments. Such risks include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity and greater volatility, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased price volatility, (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets.

The risk of investing in Europe may be heightened due to the 2016 referendum in which the United Kingdom voted to exit the European Union (EU). There is a significant degree of uncertainty about how negotiations relating to the United Kingdom’s withdrawal will be conducted, as well as the potential consequences and precise time frame for “Brexit.” It is expected that the United Kingdom’s exit from the EU will take place within two years of the United Kingdom notifying the European Council that it intends to withdraw from the EU. While it is not possible to determine the precise impact these events may have on a Fund, during this period and beyond, the impact on the United Kingdom and European economies and the broader global economy could be significant, resulting in negative impacts, such as increased volatility and illiquidity, and potentially lower economic growth, on markets in the United Kingdom, Europe and globally, which may adversely affect the value of a Fund’s investments. In addition, if one or more other countries were to exit the EU or abandon the use of the euro as a currency, the value of investments tied to those countries or the euro could decline significantly and unpredictably.

31

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Forward Foreign Currency Contracts Risk

Forward foreign currency contracts, including non-deliverable forwards, are derivative instruments pursuant to a contract with a counterparty to pay a fixed price for an agreed amount of securities or other underlying assets at an agreed date or to buy or sell a specific currency at a future date at a price set at the time of the contract. The use of forward foreign currency contracts may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities or currencies underlying the forward foreign currency contract.

Futures Contracts Risk

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

Market Risk

Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in fixed income instruments experiencing unusual liquidity issues, increased price volatility and, in some cases, credit downgrades and increased likelihood of default. These events have reduced the willingness and ability of some lenders to extend credit, and have made it more difficult for some borrowers to obtain financing on attractive terms, if at all. In addition, global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely impact issuers in a different country or region. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasi-governmental organizations.

In addition, political events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree. High public debt in the U.S. and other countries creates ongoing systemic and market risks and policymaking uncertainty. Because the impact on the markets has been widespread, it may be difficult to identify both risks and opportunities using past models of the interplay of market forces, or to predict the duration of these market conditions. Interest rates have been unusually low in recent years in the U.S. and abroad. Because there is little precedent for this situation, it is difficult to predict the impact on various markets of a significant rate increase, whether brought about by U.S. policy makers or by dislocations in world markets. In addition, there is a risk that the prices of goods and services in the U.S. and many foreign economies may decline over time, known as deflation (the opposite of inflation). Deflation may have an adverse effect on stock prices and creditworthiness and may make defaults on debt more likely.

Market Timing Risk

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

32

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Multiple Sub-Advisor Risk

The Manager may allocate the Fund’s assets among multiple sub-advisors, each of which is responsible for investing its allocated portion of the Fund’s assets. To a significant extent, the Fund’s performance will depend on the success of the Manager in allocating the Fund’s assets to sub-advisors and its selection and oversight of the sub-advisors. Because each sub-adviser manages its allocated portion of the Fund independently from another sub-adviser, the same security may be held in different portions of the Fund, or may be acquired for one portion of the Fund at a time when a sub-adviser to another portion deems it appropriate to dispose of the security from that other portion, resulting in higher expenses without accomplishing any net result in the Fund’s holdings. Similarly, under some market conditions, one sub-adviser may believe that temporary, defensive investments in short-term instruments or cash are appropriate when another sub-adviser believes continued exposure to the equity or debt markets is appropriate for its allocated portion of the Fund. Because each sub-adviser directs the trading for its own portion of the Fund, and does not aggregate its transactions with those of the other sub-advisors, the Fund may incur higher brokerage costs than would be the case if a single sub-adviser were managing the entire Fund. In addition, while the Manager seeks to allocate the Fund’s assets among the Fund’s sub-advisors in a manner that it believes is consistent with achieving the Fund’s investment objective(s), the Manager may be subject to potential conflicts of interest in allocating the Fund’s assets among sub-advisors.

Other Investment Companies Risk

The Fund may invest in shares of other registered investment companies, including money market funds. To the extent that the Fund invests in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses charged by the underlying funds in addition to the Fund’s direct fees and expenses and will be subject to the risks associated with investments in those funds.

Securities Lending Risk

To the extent the Fund lends its securities, it may be subject to the following risks; i) borrowers of the Fund’s securities typically provide collateral in the form of cash that is reinvested in securities, ii) the securities in which the collateral is invested may not perform sufficiently to cover the return collateral payments owed to borrowers, iii) delays may occur in the recovery of securities from borrowers, which could interfere with the Fund’s ability to vote proxies or to settle transactions, and iv) there is the risk of possible loss of rights in the collateral should the borrower fail financially.

Valuation Risk

The Fund may value certain assets at a price different from the price at which they can be sold. This risk may be especially pronounced for investments, such as certain derivatives, which may be illiquid or which may become illiquid.

Offsetting Assets and Liabilities

The Fund is a party to enforceable master netting agreements between brokers and counterparties which provide for the right to offset under certain circumstances. The Fund employs multiple money managers and counterparties and has elected not to offset qualifying financial and derivative instruments on the Statement of Assets and Liabilities, as such all financial and derivative instruments are presented on a gross basis. The impacts of netting arrangements that provide the right to offset are detailed below. The net amount represents the net receivable or payable that would be due from or to the counterparty in the event of default. Exposure from borrowings and other financing agreements such as repurchase agreements can only be netted across transactions governed by the same Master Agreement with the same legal entity. All amounts reported below represent the balance as of the report date, April 30, 2018.

33

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Offsetting of Financial and Derivative Assets as of April 30, 2018:
	Assets			Liabilities
Futures Contracts	$	2,721,139		$	-
Forward Foreign Currency Contracts		1,157,076			3,219,407
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	3,878,215		$	3,219,407
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)	$	(2,721,139	)	$	-
Total derivative assets and liabilities subject to an MNA	$	1,157,076		$	3,219,407

Financial Assets, Derivatives, and Collateral Received/(Pledged) by Counterparty as of April 30, 2018:
						Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Amounts of Assets Presented in the Statement of Assets and  Liabilities		Derivatives Available for Offset			Non-Cash Collateral Pledged		Cash Collateral Pledged		Net Amount
Bank of Montreal	$	143,376	$	(143,376	)	$	-	$	-	$	-
Barclays Bank PLC		207,414		(33,397	)		-		-		174,017
Citibank, N.A.		87,879		(78,540	)		-		-		9,339
Credit Suisse International		226,038		-			-		-		226,038
Goldman Sachs Capital Markets		86,192		(23,791	)		-		-		62,401
JPMorgan Chase Bank, N.A.		87,935		(87,935	)		-		-		-
Morgan Stanley Bank, N.A.		3,844		-			-		-		3,844
Royal Bank of Canada		27,365		(27,365	)		-		-		-
UBS AG		206,302		(24,880	)		-		-		181,422
Westpac Banking Corporation		80,731		-			-		-		80,731
Total	$	1,157,076	$	(419,284	)	$	-	$	-	$	737,792
						Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Amounts of Liabilities Presented in the Statement of Assets and  Liabilities		Derivatives Available for Offset			Non-Cash Collateral Received		Cash Collateral Received		Net Amount
BNP Paribas, N.A.	$	2,801	$	-		$	-	$	-	$	2,801
Bank of Montreal		366,369		(143,376	)		-		-		222,993
Barclays Bank PLC		33,397		(33,397	)		-		-		-
Citibank, N.A.		78,540		(78,540	)		-		-		-
Goldman Sachs Capital Markets		23,791		(23,791	)		-		-		-
JPMorgan Chase Bank, N.A.		246,405		(87,935	)		-		-		158,470
Royal Bank of Canada		65,206		(27,365	)		-		-		37,841
Societe Generale		1,842,350		-			-		-		1,842,350
Standard and Chartered Bank		535,651		-			-		-		535,651
State Street Bank & Trust Co.		17		-			-		-		17
UBS AG		24,880		(24,880	)		-		-		-
Total	$	3,219,407	$	(419,284	)	$	-	$	-	$	2,800,123

34

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

	Remaining Contractual Maturity of the Agreements As of April 30, 2018
	Overnight and Continuous		<30 days		Between 30 & 90 days		>90 days		Total
Securities Lending Transactions
Common Stocks	$	76,904,490	$	-	$	-	$	-	$	76,904,490
Total Borrowings	$	76,904,490	$	-	$	-	$	-	$	76,904,490
Gross amount of recognized liabilities for securities lending transactions									$	76,904,490

7.  Federal Income and Excise Taxes

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

The Fund does not have any unrecognized tax liabilities in the accompanying financial statements. Each of the tax years in the four year period ended October 31, 2017 remain subject to examination by the Internal Revenue Service. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statement of Operations.

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

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

As of April 30, 2018 the tax cost for the Fund and their respective gross unrealized appreciation (depreciation) were as follows:

Fund	Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
International Equity	$	2,904,193,214	$	469,839,133	$	(98,929,553	)	$	370,909,580

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

As of October 31, 2017, the Fund did not have any capital loss carryforwards.

8.  Investment Transactions

The aggregate cost of purchases and proceeds from sales and maturities of investments, other than short-term obligations, for the period ended April 30, 2018 were as follows:

Fund	Purchases (non-U.S. Government Securities)		Sales (non-U.S. Government Securities)
International Equity	$	519,008,579	$	412,752,584

35

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

A summary of the Fund’s transactions in the USG Select Fund for the period ended April 30, 2018 were as follows:

Fund	Type of Transaction	October 31, 2017 Shares/Fair Value		Purchases		Sales		April 30, 2018 Shares/Fair Value		Dividend Income
International Equity	Direct	$	129,125,237	$	439,613,884	$	469,817,130	$	98,921,991	$	685,679
International Equity	Securities Lending		51,596,738		488,429,077		463,121,325		76,904,490		N/A

9.  Securities Lending

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

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

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

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

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

As of April 30, 2018, the value of outstanding securities on loan and the value of collateral were as follows:

Fund	Market Value of Securities on Loan		Cash Collateral Received		Non-Cash Collateral Received		Total Collateral Received
International Equity	$	72,836,542	$	76,904,490	$	-	$	76,904,490

36

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

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

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

10.  Borrowing Arrangements

Effective November 16, 2017, the Fund, along with certain other funds managed by the Manager (“Participating Funds”), entered into a committed revolving line of credit (the “Committed Line”) agreement with State Street Bank and Trust Company (the “Bank”) to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Committed Line is $50 million with interest at a rate equal to the higher of (a) one-month London Inter-Bank Offered Rate (“LIBOR”) plus 1.25% per annum or (b) the Federal Funds rate plus 1.25% per annum on amounts borrowed. Each of the Participating Funds will pay a commitment fee at a rate of 0.25% per annum on the unused portion of the Committed Line amount. The Committed Line expires November 15, 2018, unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

Effective November 16, 2017, the Fund, along with certain other Participating Funds managed by the Manager, entered into an uncommitted discretionary demand revolving line of credit (the “Uncommitted Line”) agreement with the Bank to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Uncommitted Line is $50 million with interest at a rate equal to the higher of (a) one-month LIBOR plus 1.25% per annum or (b) the Federal Funds rate. The Uncommitted Line expires November 15, 2018 unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

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

During the period ended April 30, 2018, the Fund did not utilize this facility.

11.  Capital Share Transactions

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

	Institutional Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
International Equity Fund	Shares			Amount			Shares			Amount
Shares sold		12,683,482		$	267,809,400			24,547,005		$	463,671,500
Reinvestment of dividends		2,331,173			48,325,212			1,852,549			31,919,427
Shares redeemed		(9,475,343	)		(199,952,829	)		(30,936,620	)		(572,495,075	)
Net increase (decrease) in shares outstanding		5,539,312		$	116,181,783			(4,537,066	)	$	(76,904,148	)
	Y Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
International Equity Fund	Shares			Amount			Shares			Amount
Shares sold		3,994,944		$	87,017,450			9,603,129		$	188,451,831
Reinvestment of dividends		1,249,691			26,893,341			972,177			17,372,801
Shares redeemed		(4,040,062	)		(88,388,112	)		(8,510,279	)		(164,255,587	)
Net increase in shares outstanding		1,204,573		$	25,522,679			2,065,027		$	41,569,045

37

American Beacon International Equity Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

	Investor Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
International Equity Fund	Shares			Amount			Shares			Amount
Shares sold		994,911		$	20,714,159			3,314,057		$	61,659,507
Reinvestment of dividends		423,698			8,719,712			410,726			7,027,516
Shares redeemed		(1,927,564	)		(40,253,443	)		(7,835,357	)		(145,535,610	)
Net (decrease) in shares outstanding		(508,955	)	$	(10,819,572	)		(4,110,574	)	$	(76,848,587	)
	Advisor Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
International Equity Fund	Shares			Amount			Shares			Amount
Shares sold		264,900		$	5,643,538			1,750,129		$	35,235,104
Reinvestment of dividends		72,002			1,516,353			26,039			456,207
Shares redeemed		(290,944	)		(6,219,605	)		(486,266	)		(9,383,666	)
Net increase in shares outstanding		45,958		$	940,286			1,289,902		$	26,307,645
	A Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
International Equity Fund	Shares			Amount			Shares			Amount
Shares sold		223,254		$	4,615,526			806,495		$	14,930,964
Reinvestment of dividends		22,967			472,205			25,526			435,992
Shares redeemed		(275,920	)		(5,736,676	)		(1,051,715	)		(20,195,546	)
Net (decrease) in shares outstanding		(29,699	)	$	(648,945	)		(219,694	)	$	(4,828,590	)
	C Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
International Equity Fund	Shares			Amount			Shares			Amount
Shares sold		58,467		$	1,175,539			293,130		$	5,116,728
Reinvestment of dividends		7,541			150,449			6,515			108,211
Shares redeemed		(63,971	)		(1,298,494	)		(93,337	)		(1,664,605	)
Net increase in shares outstanding		2,037		$	27,494			206,308		$	3,560,334
	R6 Class
	Six Months Ended April 30, 2018						February 28, 2017A to October 31, 2017
	(unaudited)
International Equity Fund	Shares			Amount			Shares			Amount
Shares sold		570,575		$	12,052,644			313,319		$	6,320,006
Reinvestment of dividends		16,937			351,275			-			-
Shares redeemed		(40,213	)		(843,878	)		(8,547	)		(170,397	)
Net (decrease) in shares outstanding		547,299		$	11,560,041			304,772		$	6,149,609

^A Commencement of operations.

12.  Subsequent Events

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

38

American Beacon International Equity Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Institutional ClassA
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	20.88		$	17.41		$	18.79		$	19.51		$	20.07		$	16.05
Income (loss) from investment operations:
Net investment income		0.20			0.39			0.29			0.35			0.54			0.36
Net gains (losses) on investments (both realized and unrealized)		0.43			3.51			(1.24	)		(0.55	)		(0.77	)		4.07
Total income (loss) from investment operations		0.63			3.90			(0.95	)		(0.20	)		(0.23	)		4.43
Less distributions:
Dividends from net investment income		(0.35	)		(0.43	)		(0.27	)		(0.52	)		(0.33	)		(0.41	)
Distributions from net realized gains		(0.31	)		-			(0.16	)		-			-			-
Total distributions		(0.66	)		(0.43	)		(0.43	)		(0.52	)		(0.33	)		(0.41	)
Redemption fees added to beneficial interests		-			-			-			0.00	B		0.00	B		0.00	B
Net asset value, end of period	$	20.85		$	20.88		$	17.41		$	18.79		$	19.51		$	20.07
Total returnC		3.02	%D		22.94	%		(5.07	)%		(0.99	)%		(1.18	)%		28.14	%
Ratios and supplemental data:
Net assets, end of period	$	1,757,096,258		$	1,644,165,106		$	1,450,052,040		$	1,037,148,821		$	956,960,452		$	870,729,423
Ratios to average net assets:
Expenses, before reimbursements		0.71	%E		0.73	%		0.69	%		0.70	%		0.72	%		0.72	%
Expenses, net of reimbursements		0.71	%E		0.73	%		0.69	%		0.69	%		0.70	%		0.71	%
Net investment income, before expense reimbursements		1.97	%E		2.01	%		2.22	%		1.93	%		2.74	%		2.16	%
Net investment income, net of reimbursements		1.97	%E		2.01	%		2.22	%		1.94	%		2.76	%		2.17	%
Portfolio turnover rate		14	%D		32	%		25	%		33	%		23	%		27	%

^A  On May 31, 2016, the AMR Class closed and the assets were merged into the Institutional Class.

^B  Amount represents less than $0.01 per share.

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

^D  Not annualized.

^E  Annualized.

See accompanying notes

39

American Beacon International Equity Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Y Class
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	21.64		$	18.03		$	19.46		$	20.21		$	20.81		$	16.65
Income (loss) from investment operations:
Net investment income		0.20			0.38			0.41			0.35			0.50			0.62
Net gains (losses) on investments (both realized and unrealized)		0.44			3.65			(1.40	)		(0.57	)		(0.77	)		3.97
Total income (loss) from investment operations		0.64			4.03			(0.99	)		(0.22	)		(0.27	)		4.59
Less distributions:
Dividends from net investment income		(0.33	)		(0.42	)		(0.28	)		(0.53	)		(0.33	)		(0.43	)
Distributions from net realized gains		(0.31	)		-			(0.16	)		-			-			-
Total distributions		(0.64	)		(0.42	)		(0.44	)		(0.53	)		(0.33	)		(0.43	)
Redemption fees added to beneficial interests		-			-			-			0.00	A		0.00	A		0.00	A
Net asset value, end of period	$	21.64		$	21.64		$	18.03		$	19.46		$	20.21		$	20.81
Total returnB		2.99	%C		22.84	%		(5.14	)%		(1.06	)%		(1.31	)%		28.04	%
Ratios and supplemental data:
Net assets, end of period	$	1,055,549,611		$	1,029,629,647		$	820,596,038		$	587,949,806		$	530,836,707		$	441,945,876
Ratios to average net assets:
Expenses, before reimbursements		0.78	%D		0.80	%		0.77	%		0.77	%		0.82	%		0.85	%
Expenses, net of reimbursements		0.78	%D		0.80	%		0.77	%		0.77	%		0.82	%		0.85	%
Net investment income, before expense reimbursements		1.87	%D		1.95	%		2.43	%		1.87	%		2.62	%		2.55	%
Net investment income, net of reimbursements		1.87	%D		1.95	%		2.43	%		1.87	%		2.62	%		2.55	%
Portfolio turnover rate		14	%C		32	%		25	%		33	%		23	%		27	%

^A  Amount represents less than $0.01 per share.

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

^C  Not annualized.

^D  Annualized.

See accompanying notes

40

American Beacon International Equity Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Investor Class
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	20.67		$	17.24		$	18.60		$	19.32		$	19.86		$	15.88
Income (loss) from investment operations:
Net investment income		0.17			0.35			0.34			0.31			0.46			0.25
Net gains (losses) on investments (both realized and unrealized)		0.42			3.45			(1.33	)		(0.57	)		(0.76	)		4.09
Total income (loss) from investment operations		0.59			3.80			(0.99	)		(0.26	)		(0.30	)		4.34
Less distributions:
Dividends from net investment income		(0.28	)		(0.37	)		(0.21	)		(0.46	)		(0.24	)		(0.36	)
Distributions from net realized gains		(0.31	)		-			(0.16	)		-			-			-
Total distributions		(0.59	)		(0.37	)		(0.37	)		(0.46	)		(0.24	)		(0.36	)
Redemption fees added to beneficial interests		-			-			-			0.00	A		0.00	A		0.00	A
Net asset value, end of period	$	20.67		$	20.67		$	17.24		$	18.60		$	19.32		$	19.86
Total returnB		2.84	%C		22.50	%		(5.38	)%		(1.35	)%		(1.54	)%		27.81	%
Ratios and supplemental data:
Net assets, end of period	$	306,076,124		$	316,589,769		$	334,895,337		$	342,720,411		$	348,541,811		$	337,424,064
Ratios to average net assets:
Expenses, before reimbursements		1.04	%D		1.07	%		1.06	%		1.03	%		1.05	%		1.04	%
Expenses, net of reimbursements		1.04	%D		1.07	%		1.06	%		1.03	%		1.05	%		1.04	%
Net investment income, before expense reimbursements		1.59	%D		1.69	%		1.95	%		1.60	%		2.36	%		1.67	%
Net investment income, net of reimbursements		1.59	%D		1.69	%		1.95	%		1.60	%		2.36	%		1.67	%
Portfolio turnover rate		14	%C		32	%		25	%		33	%		23	%		27	%

^A  Amount represents less than $0.01 per share.

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

^C  Not annualized.

^D  Annualized.

See accompanying notes

41

American Beacon International Equity Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Advisor ClassA
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	21.15		$	17.62		$	19.01		$	19.76		$	20.36		$	16.36
Income (loss) from investment operations:
Net investment income (loss)		0.16			0.23			0.35			0.38			0.44			(0.41	)
Net gains (losses) on investments (both realized and unrealized)		0.42			3.64			(1.37	)		(0.68	)		(0.77	)		4.83
Total income (loss) from investment operations		0.58			3.87			(1.02	)		(0.30	)		(0.33	)		4.42
Less distributions:
Dividends from net investment income		(0.28	)		(0.34	)		(0.21	)		(0.45	)		(0.27	)		(0.42	)
Distributions from net realized gains		(0.31	)		-			(0.16	)		-			-			-
Total distributions		(0.59	)		(0.34	)		(0.37	)		(0.45	)		(0.27	)		(0.42	)
Redemption fees added to beneficial interests		-			-			-			0.00	B		0.00	B		0.00	B
Net asset value, end of period	$	21.14		$	21.15		$	17.62		$	19.01		$	19.76		$	20.36
Total returnC		2.75	%D		22.38	%		(5.40	)%		(1.51	)%		(1.64	)%		27.51	%
Ratios and supplemental data:
Net assets, end of period	$	56,667,591		$	55,715,606		$	23,692,313		$	22,912,069		$	7,677,201		$	5,231,812
Ratios to average net assets:
Expenses, before reimbursements		1.19	%E		1.20	%		1.19	%		1.16	%		1.19	%		1.20	%
Expenses, net of reimbursements		1.19	%E		1.20	%		1.19	%		1.16	%		1.19	%		1.20	%
Net investment income, before expense reimbursements		1.47	%E		1.51	%		1.87	%		1.55	%		2.21	%		1.39	%
Net investment income, net of reimbursements		1.47	%E		1.51	%		1.87	%		1.55	%		2.21	%		1.39	%
Portfolio turnover rate		14	%D		32	%		25	%		33	%		23	%		27	%

^A  On January 15, 2016, the Retirement Class closed and the assets were merged into the Advisor Class.

^B  Amount represents less than $0.01 per share.

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

^D  Not annualized.

^E  Annualized.

See accompanying notes

42

American Beacon International Equity Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	A Class
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	20.63		$	17.23		$	18.59		$	19.32		$	19.92		$	16.02
Income (loss) from investment operations:
Net investment income		0.16			0.30			0.32			0.31			0.46			0.43
Net gains (losses) on investments (both realized and unrealized)		0.42			3.48			(1.30	)		(0.59	)		(0.78	)		3.89
Total income (loss) from investment operations		0.58			3.78			(0.98	)		(0.28	)		(0.32	)		4.32
Less distributions:
Dividends from net investment income		(0.25	)		(0.38	)		(0.22	)		(0.45	)		(0.28	)		(0.42	)
Distributions from net realized gains		(0.31	)		-			(0.16	)		-			-			-
Total distributions		(0.56	)		(0.38	)		(0.38	)		(0.45	)		(0.28	)		(0.42	)
Redemption fees added to beneficial interests		-			-			-			0.00	A		0.00	A		0.00	A
Net asset value, end of period	$	20.65		$	20.63		$	17.23		$	18.59		$	19.32		$	19.92
Total returnB		2.82	%C		22.43	%		(5.34	)%		(1.42	)%		(1.65	)%		27.51	%
Ratios and supplemental data:
Net assets, end of period	$	17,235,243		$	17,829,657		$	18,673,142		$	10,747,749		$	8,540,234		$	4,113,299
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.07	%D		1.12	%		1.07	%		1.08	%		1.15	%		1.21	%
Expenses, net of reimbursements or recoupments		1.07	%D		1.12	%		1.07	%		1.08	%		1.15	%		1.25	%
Net investment income, before expense reimbursements or recoupments		1.57	%D		1.65	%		1.94	%		1.55	%		2.31	%		1.73	%
Net investment income, net of reimbursements or recoupments		1.57	%D		1.65	%		1.94	%		1.55	%		2.31	%		1.69	%
Portfolio turnover rate		14	%C		32	%		25	%		33	%		23	%		27	%

^A  Amount represents less than $0.01 per share.

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

^C  Not annualized.

^D  Annualized.

See accompanying notes

43

American Beacon International Equity Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	C Class
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	19.93		$	16.73		$	18.09		$	18.83		$	19.47		$	15.70
Income (loss) from investment operations:
Net investment income		0.10			0.17			0.18			0.16			0.30			0.52
Net gains (losses) on investments (both realized and unrealized)		0.39			3.36			(1.28	)		(0.56	)		(0.75	)		3.59
Total income (loss) from investment operations		0.49			3.53			(1.10	)		(0.40	)		(0.45	)		4.11
Less distributions:
Dividends from net investment income		(0.13	)		(0.33	)		(0.10	)		(0.34	)		(0.19	)		(0.34	)
Distributions from net realized gains		(0.31	)		-			(0.16	)		-			-			-
Total distributions		(0.44	)		(0.33	)		(0.26	)		(0.34	)		(0.19	)		(0.34	)
Redemption fees added to beneficial interests		-			-			-			0.00	A		0.00	A		0.00	A
Net asset value, end of period	$	19.98		$	19.93		$	16.73		$	18.09		$	18.83		$	19.47
Total returnB		2.46	%C		21.50	%		(6.12	)%		(2.12	)%		(2.36	)%		26.56	%
Ratios and supplemental data:
Net assets, end of period	$	7,682,491		$	7,622,425		$	2,945,246		$	3,899,081		$	3,028,934		$	1,219,537
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.79	%D		1.88	%		1.85	%		1.82	%		1.90	%		1.95	%
Expenses, net of reimbursements or recoupments		1.79	%D		1.88	%		1.85	%		1.83	%		1.90	%		1.99	%
Net investment income, before expense reimbursements or recoupments		0.86	%D		0.96	%		1.12	%		0.77	%		1.53	%		1.13	%
Net investment income, net of reimbursements or recoupments		0.86	%D		0.96	%		1.12	%		0.77	%		1.53	%		1.09	%
Portfolio turnover rate		14	%C		32	%		25	%		33	%		23	%		27	%

^A  Amount represents less than $0.01 per share.

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

^C  Not annualized.

^D  Annualized.

See accompanying notes

44

American Beacon International Equity Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	R6 Class
	Six Months Ended April 30,			February 28, 2017A to October 31,
	2018			2017
	(unaudited)
Net asset value, beginning of period	$	20.89		$	17.80
Income from investment operations:
Net investment income		0.25			0.08
Net gains on investments (both realized and unrealized)		0.39			3.01
Total income from investment operations		0.64			3.09
Less distributions:
Dividends from net investment income		(0.36	)		-
Distributions from net realized gains		(0.31	)		-
Total distributions		(0.67	)		-
Net asset value, end of period	$	20.86		$	20.89
Total returnB		3.05	%C		17.36	%C
Ratios and supplemental data:
Net assets, end of period	$	17,775,352		$	6,367,999
Ratios to average net assets:
Expenses, before reimbursements		0.70	%D		0.89	%D
Expenses, net of reimbursements		0.66	%D		0.66	%D
Net investment income, before expense reimbursements		2.32	%D		1.63	%D
Net investment income, net of reimbursements		2.36	%D		1.85	%D
Portfolio turnover rate		14	%C		32	%E

^A  Commencement of operations.

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

^C  Not annualized.

^D  Annualized.

^E  Portfolio turnover rate is for the period from February 28, 2017 through October 31, 2017 and is not annualized.

See accompanying notes

45

Delivery of Documents

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

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

www.americanbeaconfunds.com

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

To obtain more information about the Fund:

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

Fund Service Providers:

CUSTODIAN State Street Bank and Trust Boston, Massachusetts TRANSFER AGENT DST Asset Manager Solutions Kansas City, Missouri INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Dallas, Texas DISTRIBUTOR Resolute Investment Distributors, Inc. Irving, Texas

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

American Beacon Funds and American Beacon International Equity Fund are service marks of American Beacon Advisors, Inc.

SAR 04/18

About American Beacon Advisors

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

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

SMALL CAP VALUE FUND RISKS

Investing in small-capitalization stocks may involve greater volatility and lower liquidity than larger company stocks. Investing in value stocks may limit downside risk over time; however, the Fund may produce more modest gains than riskier stock funds as a trade-off for this potentially lower risk. Investing in foreign securities may involve heightened risk due to currency fluctuations and economic and political risks. 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 the 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 April 30, 2018

Contents

President’s Message	1
Performance Overview	2
Expense Examples	4
Schedule of Investments:
American Beacon Small Cap Value Fund	6
Financial Statements	25
Notes to Financial Statements	28
Financial Highlights:
American Beacon Small Cap Value Fund	45

  Additional Fund Information   Back Cover

President’s Message

Dear Shareholders,   Since 1986, American Beacon has endeavored to provide investors with a disciplined approach to realizing long-term investment goals: Institutional wisdom + earned alpha = enduring value.   u  We believe institutional wisdom comes from having more than 30 years of experience as manager of one of the country’s largest pension plans. As a fiduciary, we have built an investment due-diligence and oversight infrastructure, which we leverage across all our investment products. When selecting our investment managers, we focus on their people, processes and performance. We perform due-diligence reviews with each investment manager on a quarterly basis.   u  We believe earned alpha – that is, the returns of an actively managed fund beyond a benchmark – comes from employing and engaging

investment managers we believe are best-in-class and who have defined, repeatable and proven processes. Our experience has shown us that, while it’s important to be mindful of short-term considerations, having a long-term focus helps manage expectations, mitigate risks and realize goals. Thus, we seek relationships with leading investment managers who display a willingness to undertake time-intensive research strategies. The resulting investment portfolios are differentiated from their peers and allow incremental changes to help address periods of market volatility and economic uncertainty.

u We believe enduring value comes from “putting a portfolio in place and sticking with the plan.” Our mutual funds provide you with access to institutional-quality, research-intensive investment managers with diverse processes and styles. In the long run, having such access and spending time in the market – rather than trying to time the market – may better position you to reach your long-term investment goals.

The markets and U.S. economy were robust during calendar year 2017. However, during periods of market volatility and economic uncertainty – such as what we’ve seen thus far in 2018 – investing for the long term requires conviction. It isn’t about identifying and anticipating the next big market move. It’s about identifying the right investment products for riding out those moves. It’s about developing an approach based on long-term participation, while seeking some measure of protection against ongoing volatility.

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. Many of the sub-advisors to our mutual funds pursue upside capture and/or downside protection using proprietary strategies. 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 high quality and lower risk.

At American Beacon, our approach is more than a concept. It’s the cornerstone of our culture. And we strive to apply it at every turn as we seek to provide a well-diversified line of investment products for your portfolio.

Thank you for your continued interest in 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,

Gene L. Needles, Jr.

President

American Beacon Funds

1

American Beacon Small Cap Value Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

The Investor Class of the American Beacon Small Cap Value Fund (the “Fund”) returned 0.46% for the six months ended April 30, 2018, underperforming the Russell 2000^® Value Index (the “Index”) return of 0.94% for the same period.

Total Returns for the Period ended April 30, 2018
	Ticker	6 Months*			1 Year			3 Years			5 Years			10 Years
Institutional Class (1,8)	AVFIX		0.64	%		6.26	%		8.50	%		11.19	%		9.46	%
Y Class (1,2,8)	ABSYX		0.62	%		6.19	%		8.42	%		11.09	%		9.35	%
Investor Class (1,8)	AVPAX		0.46	%		5.93	%		8.16	%		10.82	%		9.09	%
Advisor Class (1,3,8)	AASSX		0.38	%		5.73	%		7.98	%		10.64	%		8.92	%
A without Sales Charge (1,4,8)	ABSAX		0.43	%		5.84	%		8.08	%		10.72	%		8.98	%
A with Sales Charge (1,4,8)	ABSAX		(5.35	)%		(0.24	)%		5.97	%		9.42	%		8.34	%
C without Sales Charge (1,5,8)	ASVCX		0.22	%		5.21	%		7.32	%		9.92	%		8.36	%
C with Sales Charge (1,5,8)	ASVCX		(0.78	)%		4.21	%		7.32	%		9.92	%		8.36	%
R6 Class (1,6,8)	AASRX		0.63	%		6.25	%		8.50	%		11.19	%		9.46	%
Russell 2000® Value Index (7)			0.94	%		6.53	%		9.27	%		10.36	%		8.46	%

* Not Annualized.

1. Performance shown is historical and is not indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is calculated based on the published end of day net asset values as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please 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.

2. Fund performance for the ten-year period represents the total returns achieved by the Institutional Class from 4/30/08 up to 8/3/09, the inception date of the Y Class. Expenses of the Y Class are higher than those of the Institutional Class. As a result, total returns shown may be higher than they would have been had the Y Class been in existence since 4/30/08.

3. A portion of the fees charged to the Advisor Class of the Fund was waived in 2009. Performance prior to waiving fees was lower than the actual returns shown for the ten-year period.

4. Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/08 up to 5/17/10, the inception date of the A Class, and the returns of the A Class since its inception. Expenses of the A Class are higher than those of the Investor Class. As a result, total returns shown may be higher than they would have been had the A Class been in existence since 4/30/08. A portion of the fees charged to the A Class of the Fund was waived in 2010, 2012, 2013, and 2014 and fully recovered in 2015. Performance prior to waiving fees was lower than the actual returns shown in 2010, 2012, 2013, and 2014. The maximum sales charge for A Class is 5.75%.

5. Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/08 up to 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the C Class are higher than those of the Investor Class. As a result, total returns shown may be higher than they would have been had the C Class been in existence since 4/30/08. A portion of the fees charged to the C Class of the Fund was waived in 2010, 2012, and 2013 and fully recovered in 2015. Performance prior to waiving fees was lower than the actual returns shown in 2010, 2012 and 2013. The maximum contingent deferred sales charge for C Class is 1.00% for shares redeemed within one year of the date of purchase.

6. Fund performance for the three-year, five-year and ten-year periods represent the returns achieved by the Institutional Class from 4/30/08 through 2/28/17, the inception date of the R6 Class, and the returns of the R6 Class since its inception. Expenses of the R6 Class are lower than those of the Institutional Class. As a result, total returns shown may be lower than they would have been had the R6 Class been in existence since 4/30/08. A portion of the fees charged to the R6 Class of the Fund has been waived since 2/28/17. Performance prior to waiving fees was lower than the actual returns shown.

7. The Russell 2000 Value Index is an unmanaged index of those stocks in the Russell 2000 Index with lower price-to-book ratios and lower forecasted growth values. Russell 2000 Value Index and Russell 2000 Index are registered trademarks of Frank Russell Company. Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data, and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. One cannot directly invest in an index.

2

American Beacon Small Cap Value Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

8. The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, A, C, and R6 Class shares were 0.83%, 0.91%, 1.13%, 1.31%, 1.21%, 1.97% and 0.81%, 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.

Prior to the deduction of expenses, the Fund outperformed the Index due to sector allocation. Stock selection detracted value relative to the Index.

From a sector allocation perspective, the Fund’s underweight positions in both Real Estate and Utilities, which struggled during this period, contributed positively to performance. Performance also benefited by an overweight position in Consumer Discretionary, one of the better performing sectors. A partial offset to this performance was an overweight position to Information Technology, which as a sector, only outpaced Telecom and Real Estate to become the third worst performing sector.

From a stock selection standpoint, the Fund’s investments in the Consumer Discretionary, Industrials and Materials sectors detracted relative value. The Fund’s position in American Eagle Outfitters – up 17.6% vs. 61.0% for the Index and investment in Tenneco, Inc. – down 22.5%, negatively impacted performance in the Consumer Discretionary sector. Investments in the Industrials sector that detracted from performance included Terex Corp. – down 22.2% and Tutor Perini Corp. – down 29.2%. Ferroglobe PLC – down 29.3% and Owens Illinois, Inc. – down 15.1% were the largest detractors in the Materials sector. The aforementioned performance was somewhat offset by good stock selection in the Financials sector. TCF Financial Corp. – up 38.0%, Texas Capital Bancshares, Inc. – up 15.0% and Popular, Inc. – up 28.2% were the largest contributors in the Financials sector.

The sub-advisors continue to focus on uncovering investment opportunities through stock selection that should benefit the Fund’s performance over the longer-term.

Top Ten Holdings (% Net Assets)
Texas Capital Bancshares, Inc.		0.9
Callon Petroleum Co.		0.8
Vishay Intertechnology, Inc.		0.8
Associated Banc-Corp		0.8
Whiting Petroleum Corp.		0.8
UMB Financial Corp.		0.7
II-VI, Inc.		0.7
ARRIS International PLC		0.7
Portland General Electric Co.		0.7
Enstar Group Ltd.		0.7
Total Fund Holdings	756
Sector Allocation (% Equities)
Financials		26.7
Industrials		19.6
Consumer Discretionary		14.5
Information Technology		12.6
Energy		7.4
Materials		5.8
Health Care		4.1
Real Estate		3.8
Consumer Staples		2.7
Utilities		2.4
Exchange-Traded Instruments		0.2
Telecommunication Services		0.2

3

American Beacon Small Cap Value Fund^SM

Expense Examples

April 30, 2018 (Unaudited)

Fund Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees, if applicable, and (2) ongoing costs, including management fees, distribution (12b-1) fees, sub-transfer agent fees, and other Fund expenses. The Examples are intended to help you understand the ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from November 1, 2017 through April 30, 2018.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

4

American Beacon Small Cap Value Fund^SM

Expense Examples

April 30, 2018 (Unaudited)

American Beacon Small Cap Value Fund
	Beginning Account Value 11/1/2017		Ending Account Value 4/30/2018		Expenses Paid During Period 11/1/2017-4/30/2018*
Institutional Class
Actual		$1,000.00		$1,006.40		$3.98
Hypothetical**		$1,000.00		$1,020.80		$4.01
Y Class
Actual		$1,000.00		$1,006.20		$4.33
Hypothetical**		$1,000.00		$1,020.50		$4.36
Investor Class
Actual		$1,000.00		$1,004.60		$5.52
Hypothetical**		$1,000.00		$1,019.30		$5.56
Advisor Class
Actual		$1,000.00		$1,003.80		$6.41
Hypothetical**		$1,000.00		$1,018.40		$6.46
A Class
Actual		$1,000.00		$1,004.30		$5.81
Hypothetical**		$1,000.00		$1,019.00		$5.86
C Class
Actual		$1,000.00		$1,001.80		$8.19
Hypothetical**		$1,000.00		$1,016.60		$8.25
R6 Class
Actual		$1,000.00		$1,006.30		$3.88
Hypothetical**		$1,000.00		$1,020.90		$3.91

* Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.80%, 0.87%, 1.11%, 1.29%, 1.17%, 1.65% and 0.78% for the Institutional, Y, Investor, Advisor, A, C, and R6 Classes, respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half-year period.

** 5% return before expenses.

5

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96%
Consumer Discretionary - 13.90%
Auto Components - 1.66%
American Axle & Manufacturing Holdings, Inc.A		2,692,611		$	41,304,653
Cooper Tire & Rubber Co.		289,197			7,070,867
Cooper-Standard Holdings, Inc.A		57,998			7,180,152
Dana, Inc.		607,756			14,422,050
Gentherm, Inc.A		352,628			11,918,826
Modine Manufacturing Co.A		246,154			4,233,849
Motorcar Parts of America, Inc.A		50,165			955,142
Standard Motor Products, Inc.		118,177			5,359,327
Stoneridge, Inc.A		15,900			418,647
Superior Industries International, Inc.		250,917			3,299,559
Tenneco, Inc.		395,866			17,691,251
Tower International, Inc.		39,882			1,176,519
					115,030,842
Automobiles - 0.17%
Winnebago Industries, Inc.		306,100			11,601,190
Diversified Consumer Services - 1.01%
Adtalem Global Education, Inc.A		435,837			20,745,841
American Public Education, Inc.A		99,110			3,994,133
Bridgepoint Education, Inc.A		322,854			1,885,467
Capella Education Co.		17,814			1,634,434
Graham Holdings Co., Class B		13,052			7,871,009
H&R Block, Inc.		576,885			15,950,870
Sotheby’sA		95,977			5,067,586
Strayer Education, Inc.		68,086			7,153,796
Weight Watchers International, Inc.A		87,519			6,130,706
					70,433,842
Hotels, Restaurants & Leisure - 0.93%
Belmond Ltd., Class AA		905,750			9,691,525
Bloomin’ Brands, Inc.		402,422			9,521,305
Bojangles’, Inc.A		112,800			1,663,800
Brinker International, Inc.B		97,100			4,232,589
Carrols Restaurant Group, Inc.A		82,654			851,336
Cheesecake Factory, Inc.B		382,217			19,856,173
Chuy’s Holdings, Inc.A		51,055			1,460,173
Dave & Buster’s Entertainment, Inc.A		173,980			7,392,410
Del Frisco’s Restaurant Group, Inc.A		62,169			988,487
El Pollo Loco Holdings, Inc.A		135,600			1,356,000
Eldorado Resorts, Inc.A		23,900			967,950
ILG, Inc.		36,100			1,232,093
International Speedway Corp., Class A		74,475			3,060,923
Ruth’s Hospitality Group, Inc.		17,200			461,820
Speedway Motorsports, Inc.		103,862			1,833,164
					64,569,748
Household Durables - 2.52%
Century Communities, Inc.A		113,213			3,481,300
CSS Industries, Inc.		37,532			640,296
Ethan Allen Interiors, Inc.		570,977			12,590,043
Flexsteel Industries, Inc.		25,682			941,502
Green Brick Partners, Inc.A		30,600			309,060
Helen of Troy Ltd.A		204,310			18,214,236
Hooker Furniture Corp.		7,800			294,450
KB Home		688,735			18,285,914
La-Z-Boy, Inc.		219,795			6,330,096

See accompanying notes

6

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Consumer Discretionary - 13.90% (continued)
Household Durables - 2.52% (continued)
LGI Homes, Inc.A B		57,627		$	3,987,788
Lifetime Brands, Inc.		39,020			464,338
M/I Homes, Inc.A		354,709			10,811,530
MDC Holdings, Inc.		155,416			4,508,618
Meritage Homes Corp.A		127,925			5,692,663
Taylor Morrison Home Corp., Class AA		915,259			21,746,554
Tempur Sealy International, Inc.A B		152,924			6,843,349
TRI Pointe Group, Inc.A		1,657,278			28,356,027
Tupperware Brands Corp.		81,716			3,641,265
Whirlpool Corp.		111,457			17,270,262
William Lyon Homes, Class AA		399,628			10,734,008
					175,143,299
Internet & Direct Marketing Retail - 0.03%
Duluth Holdings, Inc., Class BA B		19,400			336,590
Lands’ End, Inc.A		94,613			1,830,762
					2,167,352
Leisure Products - 0.37%
Brunswick Corp.		214,028			12,815,997
Malibu Boats, Inc., Class AA		305,620			10,299,394
MCBC Holdings, Inc.A		61,610			1,478,640
Nautilus, Inc.A		53,500			778,425
Sturm Ruger & Co., Inc.B		6,900			381,225
					25,753,681
Media - 1.81%
AMC Networks, Inc., Class AA		147,541			7,672,132
Entercom Communications Corp., Class AB		146,348			1,485,432
Entravision Communications Corp., Class A		224,796			1,045,301
EW Scripps Co., Class A		1,067,472			11,880,963
Gannett Co., Inc.		315,300			3,048,951
Gray Television, Inc.A		705,801			7,975,551
John Wiley & Sons, Inc., Class A		95,057			6,269,009
Marcus Corp.		25,900			771,820
MDC Partners, Inc., Class AA		1,256,512			9,486,666
Meredith Corp.B		277,996			14,400,193
MSG Networks, Inc., Class AA		230,854			4,732,507
New Media Investment Group, Inc.		110,639			1,834,395
New York Times Co.		916,830			21,499,664
Nexstar Media Group, Inc., Class A		15,700			977,325
Scholastic Corp.		407,487			16,869,962
Sinclair Broadcast Group, Inc., Class A		374,075			10,605,026
TEGNA, Inc.		462,551			4,889,164
					125,444,061
Multiline Retail - 0.54%
Big Lots, Inc.		372,543			15,814,450
Dillard’s, Inc., Class AB		284,142			21,182,786
Fred’s, Inc., Class A		94,957			227,422
					37,224,658
Specialty Retail - 4.17%
Aaron’s, Inc.		330,197			13,792,329
Abercrombie & Fitch Co., Class A		278,126			7,125,588
American Eagle Outfitters, Inc.		500,200			10,344,136
Asbury Automotive Group, Inc.A		75,420			5,056,911

See accompanying notes

7

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Consumer Discretionary - 13.90% (continued)
Specialty Retail - 4.17% (continued)
Ascena Retail Group, Inc.A		328,840		$	730,025
AutoNation, Inc.A		258,457			11,938,129
Bed Bath & Beyond, Inc.		289,900			5,061,654
Buckle, Inc.B		364,994			8,413,112
Caleres, Inc.		337,951			11,061,136
Cato Corp., Class A		88,487			1,434,374
Chico’s FAS, Inc.		648,526			6,439,863
Dick’s Sporting Goods, Inc.		508,651			16,831,262
DSW, Inc., Class A		420,996			9,388,211
Express, Inc.A		1,613,594			12,650,577
Finish Line, Inc., Class A		167,446			2,272,242
Francesca’s Holdings Corp.A		289,221			1,431,644
GameStop Corp., Class AB		79,171			1,080,684
Genesco, Inc.A		108,101			4,621,318
Group 1 Automotive, Inc.		225,886			14,761,650
Guess?, Inc.		699,895			16,300,555
Hibbett Sports, Inc.A		163,996			4,460,691
Kirkland’s, Inc.A		138,189			1,463,422
Lithia Motors, Inc., Class A		73,775			7,072,072
Lumber Liquidators Holdings, Inc.A B		93,385			2,247,777
Michaels Cos, Inc.A		511,421			9,522,659
Murphy USA, Inc.A		66,100			4,135,877
Office Depot, Inc.		7,484,769			17,140,121
Penske Automotive Group, Inc.		242,005			10,914,425
Pier 1 Imports, Inc.		250,693			559,045
Shoe Carnival, Inc.		55,004			1,340,447
Sonic Automotive, Inc., Class A		1,231,085			24,375,483
Tailored Brands, Inc.		136,400			4,303,420
Urban Outfitters, Inc.A		318,218			12,814,639
Williams-Sonoma, Inc.B		507,628			24,264,618
Zumiez, Inc.A		170,343			3,986,026
					289,336,122
Textiles, Apparel & Luxury Goods - 0.69%
Crocs, Inc.A		354,005			5,593,279
Deckers Outdoor Corp.A		169,031			15,763,831
Fossil Group, Inc.A B		97,436			1,456,668
G-III Apparel Group Ltd.A		13,600			496,264
Movado Group, Inc.		155,798			6,146,231
Oxford Industries, Inc.		140,720			10,841,069
Steven Madden Ltd.		8,600			414,950
Vera Bradley, Inc.A		317,392			3,611,921
Wolverine World Wide, Inc.		124,986			3,744,581
					48,068,794
Total Consumer Discretionary					964,773,589
Consumer Staples - 2.63%
Beverages - 0.46%
Boston Beer Co., Inc., Class AA		141,986			31,826,162
Food & Staples Retailing - 1.17%
Andersons, Inc.		152,610			4,982,716
Casey’s General Stores, Inc.		67,662			6,536,149
Chefs’ Warehouse, Inc.A		62,143			1,506,968
Natural Grocers by Vitamin Cottage, Inc.A		42,977			307,286
Performance Food Group Co.A		231,200			7,502,440

See accompanying notes

8

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Consumer Staples - 2.63% (continued)
Food & Staples Retailing - 1.17% (continued)
SpartanNash Co.		241,439		$	4,389,361
Sprouts Farmers Market, Inc.A		486,361			12,173,616
SUPERVALU, Inc.A B		70,005			1,225,787
United Natural Foods, Inc.A		871,794			39,248,166
Village Super Market, Inc., Class A		29,100			791,520
Weis Markets, Inc.		55,296			2,544,722
					81,208,731
Food Products - 0.71%
B&G Foods, Inc.B		29,783			677,563
Darling Ingredients, Inc.A		1,542,987			26,446,797
Dean Foods Co.		106,593			917,766
Fresh Del Monte Produce, Inc.		234,659			11,533,490
Hain Celestial Group, Inc.A		95,769			2,789,751
Sanderson Farms, Inc.		64,416			7,160,483
					49,525,850
Household Products - 0.23%
Energizer Holdings, Inc.		279,545			16,034,701
Personal Products - 0.04%
Natural Health Trends Corp.B		48,478			899,752
Nu Skin Enterprises, Inc., Class A		11,000			782,650
USANA Health Sciences, Inc.A		10,500			1,108,275
					2,790,677
Tobacco - 0.02%
Universal Corp.		28,161			1,324,975
Total Consumer Staples					182,711,096
Energy - 7.14%
Energy Equipment & Services - 2.70%
C&J Energy Services, Inc.A		462,450			13,808,757
CARBO Ceramics, Inc.A B		357,887			3,163,721
Diamond Offshore Drilling, Inc.A B		435,216			8,003,622
Dril-Quip, Inc.A		287,724			11,926,160
Ensco PLC, Class AB		320,775			1,812,379
Frank’s International N.V.B		4,462,141			31,190,366
Helix Energy Solutions Group, Inc.A		416,700			3,216,924
Key Energy Services, Inc.A		308,100			4,938,843
Matrix Service Co.A		100,983			1,555,138
McDermott International, Inc.A		1,487,358			9,816,563
Nabors Industries Ltd.		591,700			4,502,837
Natural Gas Services Group, Inc.A		108,367			2,611,645
Newpark Resources, Inc.A		1,144,463			12,016,861
Nine Energy Service, Inc.A		224,400			6,853,176
Oceaneering International, Inc.		58,264			1,237,527
Oil States International, Inc.A		640,997			23,043,842
Patterson-UTI Energy, Inc.		1,047,138			22,429,696
Quintana Energy Services, Inc.A		235,700			1,824,318
Rowan Cos PLC, Class AA		372,200			5,374,568
SEACOR Holdings, Inc.A		127,970			7,017,875
Smart Sand, Inc.A B		233,342			1,708,063
Unit Corp.A		149,200			3,383,856
US Silica Holdings, Inc.		197,620			5,950,338
					187,387,075

See accompanying notes

9

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Energy - 7.14% (continued)
Oil, Gas & Consumable Fuels - 4.44%
Alliance Holdings GP LP		44,093		$	1,127,899
Alliance Resource Partners LP, MLP		174,323			3,076,801
Arch Coal, Inc., Class A		121,551			9,824,967
BP Prudhoe Bay Royalty Trust		56,780			1,320,135
Callon Petroleum Co.A		4,193,959			58,337,970
Carrizo Oil & Gas, Inc.A		122,430			2,457,170
CNX Midstream Partners LP, MLP		20,500			390,115
CNX Resources Corp.A		632,800			9,403,408
Cosan Ltd., Class A		295,356			2,977,188
CVR Energy, Inc.B		11,300			389,850
CVR Refining LP		106,318			1,828,669
Delek US Holdings, Inc.		84,048			3,981,354
Denbury Resources, Inc.A		1,395,584			4,591,471
Energy XXI Gulf Coast, Inc.A		851,824			4,923,543
Gran Tierra Energy, Inc.A B		1,370,815			4,537,398
Gulfport Energy Corp.A		402,560			3,743,808
HighPoint Resources Corp.A		505,406			3,492,355
International Seaways, Inc.A		85,297			1,717,029
Kosmos Energy Ltd.A		2,686,393			18,912,207
Midstates Petroleum Co., Inc.A		123,047			1,721,427
Murphy Oil Corp.		486,800			14,657,548
Noble Midstream Partners LP		6,600			297,000
Nordic American Tankers Ltd.B		496,227			932,907
Oasis Petroleum, Inc.A		1,542,421			17,012,904
Par Pacific Holdings, Inc.A		126,600			2,135,742
PBF Energy, Inc., Class A		328,200			12,579,906
PBF Logistics LP		52,700			1,051,365
PDC Energy, Inc.A		356,409			19,082,138
Peabody Energy Corp.		117,135			4,316,425
QEP Resources, Inc.A		446,100			5,433,498
Renewable Energy Group, Inc.A		413,062			5,328,500
REX American Resources Corp.A		13,475			1,007,660
Rice Midstream Partners LP		16,300			299,594
SM Energy Co.		309,200			7,405,340
Southwestern Energy Co.A		686,138			2,813,166
SRC Energy, Inc.A		1,535,600			16,953,024
W&T Offshore, Inc.A		631,759			3,853,730
Whiting Petroleum Corp.A		1,317,990			53,800,352
World Fuel Services Corp.		25,500			547,485
					308,263,048
Total Energy					495,650,123
Financials - 25.70%
Banks - 16.29%
1st Source Corp.		14,300			743,600
Access National Corp.		24,517			681,818
American National Bankshares, Inc.		7,932			304,985
Arrow Financial Corp.		9,899			350,425
Associated Banc-Corp		2,122,827			56,148,774
Banc of California, Inc.		129,134			2,479,373
Bancorp, Inc.A		409,132			4,234,516
BancorpSouth Bank		189,495			6,262,810
Bank of Marin Bancorp		20,086			1,457,239
Bank of NT Butterfield & Son Ltd.		500,889			23,767,183
BankUnited, Inc.		473,429			18,752,523
Banner Corp.		322,449			18,508,573

See accompanying notes

10

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Financials - 25.70% (continued)
Banks - 16.29% (continued)
Bar Harbor Bankshares		24,700		$	721,734
BCB Bancorp, Inc.		49,292			764,026
Berkshire Hills Bancorp, Inc.		458,714			17,408,196
Boston Private Financial Holdings, Inc.		109,419			1,756,175
Bridge Bancorp, Inc.		30,318			997,462
Brookline Bancorp, Inc.		449,353			7,459,260
Bryn Mawr Bank Corp.		153,625			6,851,675
Byline Bancorp, Inc.A		35,100			745,875
C&F Financial Corp.		13,255			767,464
Camden National Corp.		24,600			1,090,026
Carolina Financial Corp.		38,400			1,505,664
Cathay General Bancorp		384,625			15,388,846
CenterState Bank Corp.		588,994			17,069,046
Central Pacific Financial Corp.		294,819			8,573,337
Chemical Financial Corp.		280,035			15,371,121
Chemung Financial Corp.		6,774			319,733
City Holding Co.		15,700			1,123,806
CoBiz Financial, Inc.		269,550			5,431,432
Community Trust Bancorp, Inc.		28,984			1,391,232
ConnectOne Bancorp, Inc.		56,416			1,489,382
Customers Bancorp, Inc.A		444,228			12,802,651
CVB Financial Corp.		396,667			8,786,174
Enterprise Financial Services Corp.		59,467			3,023,897
FCB Financial Holdings, Inc., Class AA		314,603			18,184,053
Fidelity Southern Corp.		49,900			1,134,227
Financial Institutions, Inc.		45,500			1,415,050
First BanCorpA		1,886,094			13,617,599
First Busey Corp.		140,600			4,168,790
First Business Financial Services, Inc.		15,463			401,883
First Citizens BancShares, Inc., Class A		13,848			5,986,352
First Commonwealth Financial Corp.		227,904			3,450,467
First Financial Bancorp		54,100			1,674,395
First Financial Corp.		123,439			5,277,017
First Hawaiian, Inc.		1,293,072			35,624,134
First Internet Bancorp		37,900			1,296,180
First Interstate BancSystem, Inc., Class A		269,646			10,920,663
First Merchants Corp.		74,287			3,200,284
First Mid-Illinois Bancshares, Inc.		18,156			667,233
First Midwest Bancorp, Inc.		695,594			16,909,890
Flushing Financial Corp.		93,702			2,427,819
FNB Corp.		968,977			12,596,701
Franklin Financial Network, Inc.A		42,600			1,435,620
Fulton Financial Corp.		2,015,479			34,061,595
Glacier Bancorp, Inc.		63,689			2,358,404
Great Western Bancorp, Inc.		180,882			7,441,485
Hancock Holding Co.		571,744			27,929,694
Hanmi Financial Corp.		84,602			2,335,015
Heartland Financial USA, Inc.		49,299			2,644,891
Heritage Financial Corp.		227,783			6,765,155
Hilltop Holdings, Inc.		474,659			10,641,855
HomeTrust Bancshares, Inc.A		26,640			695,304
Hope Bancorp, Inc.		455,700			7,879,053
Horizon Bancorp		53,817			1,547,777
IBERIABANK Corp.		279,643			20,959,243
International Bancshares Corp.		558,875			22,243,225
Investors Bancorp, Inc.		933,029			12,474,598
Live Oak Bancshares, Inc.		44,600			1,259,950

See accompanying notes

11

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Financials - 25.70% (continued)
Banks - 16.29% (continued)
MB Financial, Inc.		232,194		$	9,896,108
Midland States Bancorp, Inc.		44,700			1,408,050
MidSouth Bancorp, Inc.		53,100			740,745
MidWestOne Financial Group, Inc.		40,256			1,299,061
National Bank Holdings Corp., Class A		411,697			14,483,500
National Bankshares, Inc.		7,963			365,104
Northrim BanCorp, Inc.		32,788			1,154,138
Norwood Financial Corp.		11,800			349,398
OFG Bancorp		202,361			2,731,873
Old National Bancorp		2,104,582			36,198,810
Opus Bank		136,300			3,843,660
Orrstown Financial Services, Inc.		13,700			360,995
Peapack Gladstone Financial Corp.		32,400			1,070,496
Penns Woods Bancorp, Inc.		14,553			633,056
Peoples Financial Services Corp.		7,479			350,765
Popular, Inc.		656,854			30,405,772
Prosperity Bancshares, Inc.		609,492			43,743,241
Renasant Corp.		136,627			6,179,639
Republic Bancorp, Inc., Class A		53,090			2,238,805
S&T Bancorp, Inc.		89,168			3,805,690
Sandy Spring Bancorp, Inc.		17,900			709,377
Seacoast Banking Corp. of FloridaA		616,491			17,033,646
Simmons First National Corp., Class A		87,016			2,627,883
South State Corp.		173,712			15,034,774
Southern National Bancorp of Virginia, Inc.		85,600			1,391,000
State Bank Financial Corp.		36,500			1,150,115
Sterling Bancorp		311,462			7,397,222
TCF Financial Corp.		1,568,285			38,940,517
Texas Capital Bancshares, Inc.A		656,278			64,741,825
TriCo Bancshares		29,413			1,099,164
Trustmark Corp.		423,347			13,254,995
UMB Financial Corp.		661,631			50,667,702
Umpqua Holdings Corp.		1,896,319			44,677,276
Union Bankshares Corp.		407,057			15,390,825
United Community Banks, Inc.		507,647			16,209,169
Valley National Bancorp		3,438,196			43,149,360
Webster Financial Corp.		529,324			31,860,012
WesBanco, Inc.		268,182			11,746,372
West Bancorp, Inc.		14,100			343,335
Westamerica Bancorp		161,051			8,988,256
Wintrust Financial Corp.		191,092			17,093,179
					1,130,920,544
Capital Markets - 1.98%
AllianceBernstein Holding LP, MLP		300,779			8,181,189
Artisan Partners Asset Management, Inc., Class A		100,300			3,224,645
BrightSphere Investment Group PLC		870,316			13,202,694
Cohen & Steers, Inc.		183,613			7,362,881
Donnelley Financial Solutions, Inc.A		189,375			3,484,500
Ellington Financial LLC		67,600			1,008,592
Evercore, Inc., Class A		188,594			19,095,142
Federated Investors, Inc., Class B		614,868			16,275,556
GAMCO Investors, Inc., Class A		38,000			974,700
Greenhill & Co., Inc.B		72,300			1,467,690
INTL. FCStone, Inc.A		35,568			1,594,158
Manning & Napier, Inc.		97,919			303,549
Morningstar, Inc.		112,824			12,250,430

See accompanying notes

12

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Financials - 25.70% (continued)
Capital Markets - 1.98% (continued)
Och-Ziff Capital Management Group LLC		436,799		$	851,758
Oppenheimer Holdings, Inc., Class A		254,040			6,820,974
Piper Jaffray Cos		46,500			3,257,325
Stifel Financial Corp.		280,659			16,356,806
Virtus Investment Partners, Inc.		32,903			3,795,361
Waddell & Reed Financial, Inc., Class A		894,796			18,110,671
					137,618,621
Consumer Finance - 1.12%
Encore Capital Group, Inc.A B		71,263			3,178,330
EZCORP, Inc., Class AA		366,586			5,022,228
Nelnet, Inc., Class A		217,087			11,464,365
OneMain Holdings, Inc.A		254,300			7,845,155
PRA Group, Inc.A		622,434			22,158,650
SLM Corp.A		2,452,500			28,154,700
					77,823,428
Diversified Financial Services - 0.02%
FGL HoldingsA		161,921			1,543,107
Insurance - 4.52%
Ambac Financial Group, Inc.A		296,455			5,048,629
American Equity Investment Life Holding Co.		513,076			15,494,895
AMERISAFE, Inc.		36,806			2,182,596
Argo Group International Holdings Ltd.		256,069			14,967,233
Aspen Insurance Holdings Ltd.		99,027			4,203,696
Assurant, Inc.		130,500			12,113,010
CNO Financial Group, Inc.		1,420,042			30,445,700
eHealth, Inc.A		199,944			3,766,945
EMC Insurance Group, Inc.		23,922			621,494
Employers Holdings, Inc.		89,828			3,673,965
Enstar Group Ltd.A		215,404			45,267,151
FBL Financial Group, Inc., Class A		36,247			2,818,204
Global Indemnity Ltd.		383,447			15,679,148
Greenlight Capital Re Ltd., Class AA		85,311			1,322,321
Hallmark Financial Services, Inc.A		34,836			357,766
Hanover Insurance Group, Inc.		182,912			21,007,443
Horace Mann Educators Corp.		588,982			26,327,495
Infinity Property & Casualty Corp.		35,259			4,654,188
Kemper Corp.		297,222			20,062,485
MBIA, Inc.A B		153,455			1,307,437
National General Holdings Corp.		338,300			8,717,991
National Western Life Group, Inc., Class A		10,149			3,221,394
Navigators Group, Inc.		63,967			3,614,136
RenaissanceRe Holdings Ltd.		88,972			12,103,751
Safety Insurance Group, Inc.		105,361			8,428,880
Selective Insurance Group, Inc.		295,036			17,466,131
State Auto Financial Corp.		75,680			2,363,486
Stewart Information Services Corp.		34,700			1,447,337
Third Point Reinsurance Ltd.A		401,894			5,345,190
United Fire Group, Inc.		85,079			4,278,623
Universal Insurance Holdings, Inc.		102,124			3,313,924
White Mountains Insurance Group Ltd.		13,881			12,011,090
					313,633,734
Mortgage Real Estate Investment Trusts (REITs) - 0.14%
Apollo Commercial Real Estate Finance, Inc.		317,146			5,714,971

See accompanying notes

13

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Financials - 25.70% (continued)
Mortgage Real Estate Investment Trusts (REITs) - 0.14% (continued)
Ares Commercial Real Estate Corp.		79,000		$	966,170
Great Ajax Corp.		23,400			314,496
Owens Realty Mortgage, Inc.B		20,600			319,506
PennyMac Mortgage Investment Trust		45,200			795,068
Resource Capital Corp.		157,007			1,532,388
					9,642,599
Thrifts & Mortgage Finance - 1.63%
Beneficial Bancorp, Inc.		197,293			3,127,094
BofI Holding, Inc.A B		176,291			7,101,001
Capitol Federal Financial, Inc.		409,699			5,108,946
Dime Community Bancshares, Inc.		145,205			2,867,799
Essent Group Ltd.A		272,603			8,984,995
Flagstar Bancorp, Inc.A		158,306			5,469,472
HomeStreet, Inc.A		48,800			1,244,400
Kearny Financial Corp.		225,872			3,173,502
Luther Burbank Corp.		252,900			3,151,134
Meridian Bancorp, Inc.		90,403			1,708,617
Meta Financial Group, Inc.		24,900			2,767,635
MGIC Investment Corp.A		955,192			9,571,024
Northfield Bancorp, Inc.		203,335			3,220,826
Northwest Bancshares, Inc.		248,579			4,126,411
Oritani Financial Corp.		176,740			2,704,122
PCSB Financial Corp.A		53,914			1,092,837
PHH Corp.A		102,265			1,085,032
Provident Financial Services, Inc.		144,230			3,767,288
Radian Group, Inc.		597,107			8,538,630
Southern Missouri Bancorp, Inc.		9,114			318,079
Territorial Bancorp, Inc.		9,485			288,723
TrustCo Bank Corp.		157,500			1,346,625
United Financial Bancorp, Inc.		140,939			2,329,722
Walker & Dunlop, Inc.		86,136			4,919,227
Washington Federal, Inc.		781,148			24,801,449
					112,814,590
Total Financials					1,783,996,623
Health Care - 3.92%
Biotechnology - 0.09%
Emergent BioSolutions, Inc.A		114,581			5,942,171
Health Care Equipment & Supplies - 0.85%
Anika Therapeutics, Inc.A		124,655			5,486,067
Globus Medical, Inc., Class AA		19,100			977,729
Haemonetics Corp.A		114,280			8,918,411
Integra LifeSciences Holdings Corp.A		40,557			2,499,528
Invacare Corp.		1,266,742			23,054,704
Meridian Bioscience, Inc.		162,541			2,373,099
Natus Medical, Inc.A		178,500			5,899,425
NuVasive, Inc.A		139,066			7,399,702
STAAR Surgical Co.A		69,198			1,124,467
Varex Imaging Corp.A		29,600			1,065,304
					58,798,436
Health Care Providers & Services - 2.13%
Aceto Corp.		256,589			646,604
Amedisys, Inc.A		257,903			17,044,809

See accompanying notes

14

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Health Care - 3.92% (continued)
Health Care Providers & Services - 2.13% (continued)
AMN Healthcare Services, Inc.A		402,267		$	26,891,549
Encompass Health Corp.		514,780			31,308,920
Hanger, Inc.A		697,921			12,771,954
LHC Group, Inc.A		64,773			4,820,407
LifePoint Health, Inc.A		141,590			6,782,161
Magellan Health, Inc.A		157,075			13,170,739
National HealthCare Corp.		16,793			1,029,075
Owens & Minor, Inc.		223,973			3,639,561
Providence Service Corp.A		68,793			5,220,013
Select Medical Holdings Corp.A		527,354			9,518,740
Tivity Health, Inc.A		393,712			14,153,946
US Physical Therapy, Inc.		10,000			912,500
					147,910,978
Health Care Technology - 0.24%
Omnicell, Inc.A		228,669			9,855,634
Quality Systems, Inc.A		506,599			6,803,624
					16,659,258
Life Sciences Tools & Services - 0.38%
Cambrex Corp.A		407,118			21,556,898
Charles River Laboratories International, Inc.A		49,713			5,179,597
					26,736,495
Pharmaceuticals - 0.23%
Innoviva, Inc.A		298,188			4,323,726
Supernus Pharmaceuticals, Inc.A		245,664			11,521,642
					15,845,368
Total Health Care					271,892,706
Industrials - 18.82%
Aerospace & Defense - 1.79%
AAR Corp.		509,985			22,082,351
Aerojet Rocketdyne Holdings, Inc.A		412,207			11,517,064
Aerovironment, Inc.A		194,060			10,576,270
Astronics Corp.A		26,900			984,002
Cubic Corp.		80,101			4,946,237
Embraer S.A., Sponsored ADR		951,063			23,985,809
Esterline Technologies Corp.A		177,755			12,771,697
KLX, Inc.A		259,773			20,322,042
Moog, Inc., Class AA		61,117			5,009,760
National Presto Industries, Inc.B		10,547			1,009,875
Triumph Group, Inc.		301,699			7,135,181
Vectrus, Inc.A		31,951			1,150,236
Wesco Aircraft Holdings, Inc.A		248,294			2,507,769
					123,998,293
Air Freight & Logistics - 0.67%
Air Transport Services Group, Inc.A		1,039,453			21,038,529
Atlas Air Worldwide Holdings, Inc.A		71,315			4,521,371
Hub Group, Inc., Class AA		477,828			21,000,540
					46,560,440
Airlines - 0.18%
Allegiant Travel Co.		9,644			1,545,451
Hawaiian Holdings, Inc.		37,900			1,561,480

See accompanying notes

15

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Industrials - 18.82% (continued)
Airlines - 0.18% (continued)
SkyWest, Inc.		146,266		$	8,322,536
Spirit Airlines, Inc.A		25,306			903,930
					12,333,397
Building Products - 1.83%
American Woodmark Corp.A		3,800			312,360
Apogee Enterprises, Inc.		7,300			300,103
Armstrong Flooring, Inc.A		423,004			5,224,100
Builders FirstSource, Inc.A		441,900			8,055,837
Caesarstone Ltd.		69,143			1,275,688
Gibraltar Industries, Inc.A		502,738			17,671,241
Insteel Industries, Inc.		27,100			813,813
Masonite International Corp.A		463,800			28,152,660
Simpson Manufacturing Co., Inc.		538,353			29,437,142
Trex Co., Inc.A		188,472			19,578,471
Universal Forest Products, Inc.		507,509			16,179,387
					127,000,802
Commercial Services & Supplies - 1.98%
ACCO Brands Corp.		665,587			8,020,323
Deluxe Corp.		367,877			25,214,290
Ennis, Inc.		52,600			941,540
Essendant, Inc.		268,065			1,994,404
Herman Miller, Inc.		196,081			6,019,687
InnerWorkings, Inc.A		392,783			3,967,108
Interface, Inc.		343,997			7,567,934
Knoll, Inc.		896,402			17,094,386
LSC Communications, Inc.		1,302,375			22,765,515
Matthews International Corp., Class A		112,135			5,511,435
Mobile Mini, Inc.		568,269			23,867,298
MSA Safety, Inc.		86,797			7,537,452
Quad/Graphics, Inc.		73,900			1,826,069
Steelcase, Inc., Class A		278,669			3,692,364
Team, Inc.A B		64,175			1,087,766
UniFirst Corp.		4,600			738,760
					137,846,331
Construction & Engineering - 2.63%
AECOMA		416,578			14,346,946
Aegion Corp.A		231,666			5,256,502
Comfort Systems USA, Inc.		649,663			27,415,779
Dycom Industries, Inc.A		3,800			394,668
EMCOR Group, Inc.		307,488			22,628,042
Granite Construction, Inc.		129,965			6,807,567
KBR, Inc.		2,093,282			34,936,877
MasTec, Inc.A		287,422			12,646,568
MYR Group, Inc.A		46,279			1,388,370
Primoris Services Corp.		981,802			25,124,313
Quanta Services, Inc.A		288,361			9,371,732
Tutor Perini Corp.A		539,716			11,145,135
Valmont Industries, Inc.		76,658			10,893,102
					182,355,601
Electrical Equipment - 1.54%
Atkore International Group, Inc.A		179,400			3,187,938
Encore Wire Corp.		405,780			21,364,317
EnerSys		615,043			42,167,348

See accompanying notes

16

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Industrials - 18.82% (continued)
Electrical Equipment - 1.54% (continued)
Generac Holdings, Inc.A		240,957		$	10,845,475
Preformed Line Products Co.		15,465			1,040,021
Regal Beloit Corp.		257,578			18,339,554
Sunrun, Inc.A B		201,200			1,855,064
Thermon Group Holdings, Inc.A		101,106			2,304,206
TPI Composites, Inc.A		257,293			5,827,686
					106,931,609
Industrial Conglomerates - 0.06%
Raven Industries, Inc.		121,364			4,441,922
Machinery - 4.50%
Actuant Corp., Class A		1,024,262			24,121,370
Allison Transmission Holdings, Inc.		234,900			9,158,751
Altra Industrial Motion Corp.		115,140			4,795,581
Astec Industries, Inc.		186,966			10,387,831
Barnes Group, Inc.		464,751			25,807,623
Briggs & Stratton Corp.		579,674			10,451,522
Chart Industries, Inc.A		352,739			20,014,411
Colfax Corp.A		585,000			18,140,850
Columbus McKinnon Corp.		99,593			3,573,397
Commercial Vehicle Group, Inc.A		141,817			951,592
EnPro Industries, Inc.		106,998			8,040,900
Federal Signal Corp.		1,430,425			30,983,005
Global Brass & Copper Holdings, Inc.		343,207			10,296,210
Graham Corp.		18,800			405,704
Greenbrier Cos, Inc.B		376,034			16,489,091
Hillenbrand, Inc.		218,359			10,120,940
Hurco Cos, Inc.		24,000			1,060,800
Hyster-Yale Materials Handling, Inc.		151,626			10,795,771
Kennametal, Inc.		126,251			4,601,849
Lindsay Corp.		129,426			11,371,368
Luxfer Holdings PLC		29,579			414,106
Meritor, Inc.A		321,031			6,250,474
Miller Industries, Inc.		259,542			6,423,665
Mueller Industries, Inc.		10,200			277,236
Navistar International Corp.A		106,166			3,695,638
Park-Ohio Holdings Corp.		80,437			3,048,562
Sun Hydraulics Corp.		113,086			5,492,587
Tennant Co.		56,107			4,151,918
Terex Corp.		674,039			24,615,904
TriMas Corp.A		204,474			5,541,245
Trinity Industries, Inc.		384,932			12,267,783
Wabash National Corp.		200,851			4,029,071
Watts Water Technologies, Inc., Class A		61,789			4,603,281
					312,380,036
Marine - 0.51%
Kirby Corp.A		116,228			9,914,248
Matson, Inc.		873,147			25,522,087
					35,436,335
Professional Services - 1.35%
Barrett Business Services, Inc.		21,200			1,855,424
CBIZ, Inc.A		22,700			422,220
FTI Consulting, Inc.A		32,500			1,898,000
Heidrick & Struggles International, Inc.		202,718			7,632,333

See accompanying notes

17

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Industrials - 18.82% (continued)
Professional Services - 1.35% (continued)
Hudson Global, Inc.A		623,926		$	1,172,981
Huron Consulting Group, Inc.A		161,007			6,029,712
Insperity, Inc.		6,400			513,600
Kelly Services, Inc., Class A		377,818			11,054,955
Kforce, Inc.		42,700			1,133,685
Korn/Ferry International		753,181			40,265,056
Navigant Consulting, Inc.A		319,063			6,824,757
Resources Connection, Inc.		238,972			3,739,912
RPX Corp.		360,250			3,901,507
TrueBlue, Inc.A		283,483			7,554,822
					93,998,964
Road & Rail - 0.46%
ArcBest Corp.		431,280			13,844,088
Marten Transport Ltd.		310,302			6,050,889
Ryder System, Inc.		99,600			6,716,028
Werner Enterprises, Inc.		161,430			5,537,049
					32,148,054
Trading Companies & Distributors - 1.32%
Air Lease Corp.		291,302			12,144,380
Aircastle Ltd.		677,287			13,274,825
Applied Industrial Technologies, Inc.		104,450			6,679,578
GATX Corp.		108,056			7,049,573
Kaman Corp.		193,769			11,750,152
MRC Global, Inc.A		213,450			3,997,919
Rush Enterprises, Inc., Class AA		448,285			18,303,477
Textainer Group Holdings Ltd.A		55,661			957,369
Titan Machinery, Inc.A		74,191			1,433,370
Triton International Ltd.		227,600			7,057,876
WESCO International, Inc.A		149,100			8,878,905
					91,527,424
Total Industrials					1,306,959,208
Information Technology - 12.10%
Communications Equipment - 1.79%
ADTRAN, Inc.		67,128			983,425
ARRIS International PLCA		1,804,592			48,723,984
Ciena Corp.A		726,940			18,718,705
Comtech Telecommunications Corp.		86,725			2,652,918
Digi International, Inc.A		150,688			1,732,912
EchoStar Corp., Class AA		111,027			5,833,358
InterDigital, Inc.		64,900			4,831,805
NETGEAR, Inc.A		282,344			15,613,623
NetScout Systems, Inc.A		393,505			10,683,661
Plantronics, Inc.		210,693			13,726,649
Quantenna Communications, Inc.A		85,500			1,083,285
					124,584,325
Electronic Equipment, Instruments & Components - 4.99%
Anixter International, Inc.A		84,595			4,982,646
Avnet, Inc.		338,387			13,274,922
AVX Corp.		522,522			7,712,425
Belden, Inc.		232,395			14,315,532
Benchmark Electronics, Inc.		144,248			3,793,722
Celestica, Inc.A		538,363			6,191,175

See accompanying notes

18

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Information Technology - 12.10% (continued)
Electronic Equipment, Instruments & Components - 4.99% (continued)
Daktronics, Inc.		176,810		$	1,593,058
ePlus, Inc.A		4,500			359,325
FabrinetA		365,734			10,317,356
FARO Technologies, Inc.A		464,144			23,439,272
II-VI, Inc.A		1,297,905			49,450,180
Insight Enterprises, Inc.A		177,755			6,301,415
Itron, Inc.A		131,944			8,629,138
Jabil, Inc.		455,933			12,127,818
KEMET Corp.A		159,700			2,750,034
Methode Electronics, Inc.		356,242			14,214,056
MTS Systems Corp.		397,943			20,215,504
Park Electrochemical Corp.		57,205			974,201
PC Connection, Inc.		95,543			2,550,043
Plexus Corp.A		577,345			31,661,600
Sanmina Corp.A		227,044			6,697,798
ScanSource, Inc.A		253,377			8,690,831
SYNNEX Corp.		113,082			11,327,424
Tech Data Corp.A		238,653			18,197,291
TTM Technologies, Inc.A		302,584			4,218,021
VeriFone Systems, Inc.A		173,735			3,997,642
Vishay Intertechnology, Inc.		3,290,199			58,072,012
					346,054,441
Internet Software & Services - 0.42%
Blucora, Inc.A		366,400			9,526,400
Cars.com, Inc.A		35,078			999,021
LivePerson, Inc.A		309,358			5,197,214
NIC, Inc.		548,370			8,143,295
Shutterstock, Inc.A		17,200			724,808
Web.com Group, Inc.A		246,445			4,583,877
					29,174,615
IT Services - 1.57%
Acxiom Corp.A		649,340			16,869,853
CACI International, Inc., Class AA		53,462			8,075,435
Convergys Corp.		454,273			10,611,817
CSG Systems International, Inc.		439,282			18,796,877
Luxoft Holding, Inc.A		14,800			597,180
Science Applications International Corp.		92,262			7,915,157
Sykes Enterprises, Inc.A		127,656			3,671,386
Syntel, Inc.A		292,300			8,441,624
Teradata Corp.A		367,280			15,029,098
Travelport Worldwide Ltd.		973,540			16,686,476
Unisys Corp.A B		207,146			2,320,035
					109,014,938
Semiconductors & Semiconductor Equipment - 2.75%
Advanced Energy Industries, Inc.A		228,500			13,607,175
Ambarella, Inc.A		15,279			711,849
Amkor Technology, Inc.A		1,096,156			9,076,172
Brooks Automation, Inc.		1,630,614			40,569,676
ChipMOS TECHNOLOGIES, Inc., ADRB		127,463			1,755,166
Cirrus Logic, Inc.A		256,829			9,366,554
Cohu, Inc.		94,111			2,013,975
Cree, Inc.A		228,461			8,526,165
Diodes, Inc.A		1,422,005			40,598,243
Ichor Holdings Ltd.A B		30,024			663,530

See accompanying notes

19

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Information Technology - 12.10% (continued)
Semiconductors & Semiconductor Equipment - 2.75% (continued)
Kulicke & Soffa Industries, Inc.A		280,759		$	6,426,573
Mellanox Technologies Ltd.A		11,145			875,997
PDF Solutions, Inc.A		71,265			794,605
Photronics, Inc.A		2,836,414			21,698,567
Rudolph Technologies, Inc.A		13,300			337,155
Semtech Corp.A		217,504			8,547,907
SMART Global Holdings, Inc.A		119,100			4,662,765
Synaptics, Inc.A		33,886			1,474,719
Veeco Instruments, Inc.A		100,923			1,559,260
Xcerra Corp.A		1,334,340			16,118,827
Xperi Corp.		56,389			1,240,558
					190,625,438
Software - 0.40%
CommVault Systems, Inc.A		92,055			6,439,248
MicroStrategy, Inc., Class AA		7,700			981,442
Monotype Imaging Holdings, Inc.		28,700			635,705
Synchronoss Technologies, Inc.A		110,245			1,234,744
Verint Systems, Inc.A		444,552			18,715,639
					28,006,778
Technology Hardware, Storage & Peripherals - 0.18%
3D Systems Corp.A B		143,193			1,437,658
Cray, Inc.A		437,492			10,434,184
Super Micro Computer, Inc.A		34,200			605,340
					12,477,182
Total Information Technology					839,937,717
Materials - 5.60%
Chemicals - 1.84%
American Vanguard Corp.		74,900			1,614,095
Cabot Corp.		409,838			22,893,551
Core Molding Technologies, Inc.		17,596			272,738
FutureFuel Corp.		49,630			580,671
GCP Applied Technologies, Inc.A		24,200			693,330
Hawkins, Inc.		19,200			624,000
HB Fuller Co.		112,664			5,573,488
Innospec, Inc.		83,678			6,083,391
Koppers Holdings, Inc.A		104,558			4,579,640
Kraton Corp.A		240,708			10,993,134
Kronos Worldwide, Inc.		215,515			4,965,466
LSB Industries, Inc.A B		124,315			687,462
Minerals Technologies, Inc.		87,988			6,075,571
PolyOne Corp.		721,880			30,210,678
Rayonier Advanced Materials, Inc.		289,191			6,188,687
Stepan Co.		152,460			10,720,987
Trecora ResourcesA		29,700			384,615
Trinseo S.A.		204,306			14,904,123
					128,045,627
Containers & Packaging - 0.35%
Greif, Inc., Class A		79,951			4,678,732
Owens-Illinois, Inc.A		975,493			19,831,773
					24,510,505
Metals & Mining - 2.52%
Allegheny Technologies, Inc.A B		1,589,900			42,243,643

See accompanying notes

20

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Materials - 5.60% (continued)
Metals & Mining - 2.52% (continued)
Carpenter Technology Corp.		602,944		$	32,112,798
Cleveland-Cliffs, Inc.A		836,500			6,206,830
Coeur Mining, Inc.A		581,944			4,405,316
Commercial Metals Co.		379,206			7,967,118
Compass Minerals International, Inc.B		23,116			1,555,707
Ferroglobe PLCA		2,562,970			28,961,561
Ferroglobe Representation & Warranty InsuranceC		2,123,070			-
Haynes International, Inc.		64,053			2,678,056
Hecla Mining Co.		2,037,791			7,804,740
Hudbay Minerals, Inc.		376,394			2,615,938
Materion Corp.		317,451			16,110,638
Pan American Silver Corp.		393,267			6,339,464
Real Industry, Inc.A		722,432			278,136
Schnitzer Steel Industries, Inc., Class A		238,000			7,009,100
SunCoke Energy Partners LP		38,700			594,045
Worthington Industries, Inc.		173,836			7,740,917
					174,624,007
Paper & Forest Products - 0.89%
Boise Cascade Co.		30,120			1,252,992
Clearwater Paper Corp.A		19,484			460,797
Domtar Corp.		413,743			18,163,318
Louisiana-Pacific Corp.		989,990			28,046,417
Mercer International, Inc.		257,361			3,448,637
PH Glatfelter Co.		265,339			5,542,932
Schweitzer-Mauduit International, Inc.		86,585			3,379,412
Verso Corp., Class AA		76,618			1,383,721
					61,678,226
Total Materials					388,858,365
Real Estate - 3.64%
Equity Real Estate Investment Trusts (REITs) - 3.59%
Agree Realty Corp.		201,976			9,872,587
Ashford Hospitality Trust, Inc.		848,153			5,835,293
Brandywine Realty Trust		468,396			7,545,859
CoreCivic, Inc.		608,701			12,271,412
Cousins Properties, Inc.		836,804			7,439,188
Education Realty Trust, Inc.		214,536			7,060,380
Front Yard Residential Corp.		137,136			1,346,675
GEO Group, Inc.		1,236,542			27,822,195
Granite Real Estate Investment Trust		596,260			23,558,233
Hospitality Properties Trust		108,731			2,705,227
LaSalle Hotel Properties		440,827			13,035,254
Lexington Realty Trust		1,579,269			12,697,323
Medical Properties Trust, Inc.		540,332			6,905,443
New York REIT, Inc.B		112,311			2,428,164
Outfront Media, Inc.		542,721			10,176,019
Pebblebrook Hotel Trust		360,369			12,609,311
Preferred Apartment Communities, Inc., Class A,		523,930			7,707,010
Ramco-Gershenson Properties Trust		422,455			5,048,337
Retail Properties of America, Inc., Class A,		744,839			8,595,442
RLJ Lodging Trust		284,472			5,908,483
Ryman Hospitality Properties, Inc.		125,994			9,875,410
Select Income REIT		462,695			8,772,697
Seritage Growth PropertiesB		716,559			25,488,004
Sunstone Hotel Investors, Inc.		639,232			9,972,019

See accompanying notes

21

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.96% (continued)
Real Estate - 3.64% (continued)
Equity Real Estate Investment Trusts (REITs) - 3.59% (continued)
Urban Edge Properties		219,933		$	4,524,022
					249,199,987
Real Estate Management & Development - 0.05%
Forestar Group, Inc.A B		110,086			2,399,875
Tejon Ranch Co.A		50,412			1,226,524
					3,626,399
Total Real Estate					252,826,386
Telecommunication Services - 0.19%
Diversified Telecommunication Services - 0.06%
ATN International, Inc.		22,432			1,188,896
Iridium Communications, Inc.A B		276,385			3,288,981
					4,477,877
Wireless Telecommunication Services - 0.13%
Spok Holdings, Inc.		93,901			1,399,125
Telephone & Data Systems, Inc.		265,654			7,260,324
					8,659,449
Total Telecommunication Services					13,137,326
Utilities - 2.32%
Electric Utilities - 1.25%
ALLETE, Inc.		101,938			7,789,083
El Paso Electric Co.		11,900			607,495
Hawaiian Electric Industries, Inc.		310,867			10,783,976
IDACORP, Inc.		221,125			20,564,625
Otter Tail Corp.		7,500			328,875
PNM Resources, Inc.		36,368			1,441,991
Portland General Electric Co.		1,072,991			45,580,658
					87,096,703
Gas Utilities - 0.77%
Chesapeake Utilities Corp.		155,487			11,817,012
National Fuel Gas Co.		237,063			12,173,185
Northwest Natural Gas Co.		18,865			1,156,425
South Jersey Industries, Inc.B		322,187			9,955,578
Southwest Gas Holdings, Inc.		235,654			17,200,386
Star Group LP		68,124			662,165
Suburban Propane Partners LP		13,700			316,881
					53,281,632
Independent Power & Renewable Electricity Producers - 0.14%
NRG Yield, Inc., Class A		95,748			1,686,122
NRG Yield, Inc., Class C		467,360			8,319,008
					10,005,130
Multi-Utilities - 0.16%
Avista Corp.		28,904			1,498,961
NorthWestern Corp.		165,322			9,082,791
Unitil Corp.		6,800			330,412
					10,912,164
Total Utilities					161,295,629
Total Common Stocks (Cost $5,543,741,090)					6,662,038,768

See accompanying notes

22

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
EXCHANGE-TRADED INSTRUMENTS - 0.22% (Cost $15,434,928)
Exchange-Traded Funds - 0.22%
iShares Russell 2000 Value ETFB		123,567		$	15,338,372
SHORT-TERM INVESTMENTS - 3.61% (Cost $250,178,951)
Investment Companies - 3.61%
American Beacon U.S. Government Money Market Select Fund, Select Class, 1.61%D E		250,178,951			250,178,951
SECURITIES LENDING COLLATERAL - 2.61% (Cost $181,319,674)
Investment Companies - 2.61%
American Beacon U.S. Government Money Market Select Fund, Select Class, 1.61%D E		181,319,674			181,319,674
TOTAL INVESTMENTS - 102.40% (Cost $5,990,674,643)					7,108,875,765
LIABILITIES, NET OF OTHER ASSETS - (2.40%)					(166,335,538	)
TOTAL NET ASSETS - 100.00%				$	6,942,540,227
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 at April 30, 2018.

^C Fair valued pursuant to procedures approved by the Board of Trustees. At period end, the value of these securities amounted to $0 or 0.00% of net assets. Value was determined using significant unobservable inputs.

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

^E 7-day yield.

ADR - American Depositary Receipt.

ETF - Exchange-Traded Fund.

LLC - Limited Liability Company.

LP - Limited Partnership.

MLP – Master Limited Partnership.

PLC - Public Limited Company.

Futures Contracts Open on April 30, 2018:
Long Futures
Equity Futures Contracts
Description	Number of Contracts	Expiration Date	Notional Amount		Contract Value		Unrealized Appreciation (Depreciation)
Russell 2000 E-Mini Index Futures	3,112	June 2018	$	245,220,635	$	240,215,280	$	(5,005,355	)
			$	245,220,635	$	240,215,280	$	(5,005,355	)

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of April 30, 2018, the investments were classified as described below:

Small Cap Value Fund	Level 1			Level 2		Level 3			Total
Assets
Common Stocks	$	6,662,038,768		$	-	$	0	(1)	$	6,662,038,768
Exchange-Traded Instruments		15,338,372			-		-			15,338,372
Short-Term Investments		250,178,951			-		-			250,178,951
Securities Lending Collateral		181,319,674			-		-			181,319,674
Total Investments in Securities - Assets	$	7,108,875,765		$	-	$	-		$	7,108,875,765
Financial Derivative Instruments - Liabilities
Futures Contracts	$	(5,005,355	)	$	-	$	-		$	(5,005,355	)
Total Financial Derivative Instruments - Liabilities	$	(5,005,355	)	$	-	$	-		$	(5,005,355	)

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

See accompanying notes

23

American Beacon Small Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

U.S. GAAP requires all transfers between any levels to be disclosed. The end of period timing recognition has been adopted for the transfers between levels of the Fund’s assets and liabilities. During the period ended April 30, 2018, there were no transfers between levels.

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

Security Type	Balance as of 10/31/2017	Purchases	Sales	Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Transfer into Level 3		Transfer out of Level 3		Balance as of 4/30/2018		Change in Unrealized Appreciation (Depreciation) at Period end**
Common Stocks	$0(1)	$              -	$          -	$	-	$	-	$	-	$	-	$	-	$	0(1)	$	-

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

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

The common stock, classified as Level 3, is beneficial interest units in a representation and warranty insurance trust. The shares have been fair valued at $0 due to limited market transparency.

See accompanying notes

24

American Beacon Small Cap Value Fund^SM

Statement of Assets and Liabilities

April 30, 2018 (Unaudited)

Assets:
Investments in unaffiliated securities, at fair value†§	$	6,677,377,140
Investments in affiliated securities, at fair value‡		431,498,625
Deposit with brokers for futures contracts		13,190,598
Dividends and interest receivable		2,703,803
Receivable for investments sold		14,103,131
Receivable for fund shares sold		6,304,276
Prepaid expenses		93,816
Total assets		7,145,271,389
Liabilities:
Payable for investments purchased		3,515,774
Payable for fund shares redeemed		7,765,788
Payable for variation margin from open futures contracts (Note 5)		4,998,416
Payable upon return of securities loaned (Note 9)§		181,319,674
Management and sub-advisory fees payable (Note 2)		4,285,411
Service fees payable (Note 2)		211,022
Transfer agent fees payable (Note 2)		151,937
Custody and fund accounting fees payable		362,962
Professional fees payable		41,273
Trustee fees payable (Note 2)		8,852
Payable for prospectus and shareholder reports		27,715
Other liabilities		42,338
Total liabilities		202,731,162
Net assets	$	6,942,540,227
Analysis of net assets:
Paid-in-capital	$	5,540,949,790
Undistributed net investment income		8,047,964
Accumulated net realized gain		280,346,549
Unrealized appreciation of investments in unaffiliated securitiesA		1,118,201,122
Unrealized appreciation of foreign currency transactions		157
Unrealized (depreciation) of futures contracts		(5,005,355	)
Net assets	$	6,942,540,227
Shares outstanding at no par value (unlimited shares authorized):
Institutional Class		192,476,397
Y Class		14,038,965
Investor Class		22,539,929
Advisor Class		3,590,348
A Class		2,847,922
C Class		592,127
R6 Class		21,464,664
Net assets:
Institutional Class	$	5,217,419,465
Y Class	$	375,345,589
Investor Class	$	588,093,536
Advisor Class	$	92,439,111
A Class	$	72,961,773
C Class	$	14,569,083
R6 Class	$	581,711,670
Net asset value, offering and redemption price per share:
Institutional Class	$	27.11
Y Class	$	26.74
Investor Class	$	26.09
Advisor Class	$	25.75
A Class	$	25.62
A Class (offering price)	$	27.18
C Class	$	24.60
R6 Class	$	27.10
† Cost of investments in unaffiliated securities	$	5,559,176,018
‡ Cost of investments in affiliated securities	$	431,498,625
§ Fair value of securities on loan	$	173,944,582
A The Fund’s investments in affiliated securities did not have unrealized appreciation (depreciation) at period end.

See accompanying notes

25

American Beacon Small Cap Value Fund^SM

Statement of Operations

For the period ended April 30, 2018 (Unaudited)

Investment income:
Dividend income from unaffiliated securities (net of foreign taxes)†	$	50,814,943
Dividend income from affiliated securities		1,544,857
Income derived from securities lending (Note 9)		1,419,371
Total investment income		53,779,171
Expenses:
Management and sub-advisory fees (Note 2)		25,952,479
Transfer agent fees:
Institutional Class (Note 2)		786,877
Y Class (Note 2)		169,697
Investor Class		15,776
Advisor Class		3,553
A Class		3,271
C Class		1,382
R6 Class		1,898
Custody and fund accounting fees		359,190
Professional fees		151,093
Registration fees and expenses		87,253
Service fees (Note 2):
Investor Class		1,035,407
Advisor Class		120,109
A Class		49,831
C ClassA		(11,881	)
Distribution fees (Note 2):
Advisor Class		120,157
A Class		90,098
C Class		75,013
Prospectus and shareholder report expenses		178,693
Trustee fees (Note 2)		215,736
Other expenses		190,246
Total expenses		29,595,878
Net investment income		24,183,293
Realized and unrealized gain (loss) from investments:
Net realized gain (loss) from:
Investments in unaffiliated securitiesB		324,568,696
Commission recapture (Note 1)		8,906
Foreign currency transactions		(10,817	)
Futures contracts		11,406,617
Change in net unrealized appreciation (depreciation) of:
Investments in unaffiliated securitiesC		(306,241,714	)
Foreign currency transactions		596
Futures contracts		(11,566,695	)
Net gain from investments		18,165,589
Net increase in net assets resulting from operations	$	42,348,882
† Foreign taxes	$	220,523
A The Manager voluntarily reimbursed service fees.
B The Fund did not recognize net realized gains (losses) from the sale of investments in affiliated securities.
C The Fund’s investments in affiliated securities did not have a change in unrealized appreciation (depreciation) at period end.

See accompanying notes

26

American Beacon Small Cap Value Fund^SM

Statement of Changes in Net Assets

	Six Months Ended April 30, 2018			Year Ended October 31, 2017
	(unaudited)
Increase (decrease) in net assets:
Operations:
Net investment income	$	24,183,293		$	35,906,655
Net realized gain from investments in unaffiliated securities, commission recapture, foreign currency transactions, and futures contracts		335,973,402			579,320,266
Change in net unrealized appreciation (depreciation) of investments in unaffiliated securities, foreign currency transactions, and futures contracts		(317,807,813	)		807,767,623
Net increase in net assets resulting from operations		42,348,882			1,422,994,544
Distributions to shareholders:
Net investment income:
Institutional Class		(28,167,910	)		(44,712,589	)
Y Class		(1,779,257	)		(2,820,317	)
Investor Class		(1,528,820	)		(3,777,116	)
Advisor Class		(46,233	)		(514,722	)
A Class		(145,351	)		(310,111	)
R6 Class		(2,178,923	)		–
Net realized gain from investments:
Institutional Class		(455,822,949	)		(122,225,000	)
Y Class		(32,696,634	)		(8,295,210	)
Investor Class		(57,157,688	)		(15,742,672	)
Advisor Class		(8,668,613	)		(2,933,912	)
A Class		(6,270,522	)		(1,474,164	)
C Class		(1,398,032	)		(344,117	)
R6 Class		(33,334,855	)		–
Net distributions to shareholders		(629,195,787	)		(203,149,930	)
Capital share transactions (Note 11):
Proceeds from sales of shares		980,889,022			2,041,595,238
Reinvestment of dividends and distributions		608,543,857			196,388,754
Cost of shares redeemed		(1,100,414,442	)		(2,233,807,450	)
Net increase in net assets from capital share transactions		489,018,437			4,176,542
Net increase (decrease) in net assets		(97,828,468	)		1,224,021,156
Net assets:
Beginning of period		7,040,368,695			5,816,347,539
End of period *	$	6,942,540,227		$	7,040,368,695
*Includes undistributed net investment income	$	8,047,964		$	17,711,165

See accompanying notes

27

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

1.  Organization and Significant Accounting Policies

American Beacon Funds (the “Trust”), is organized as a Massachusetts business trust. The Fund, a series within the Trust, is registered under the Investment Company Act of 1940 (the “Act”), as amended, as a diversified, open-end management investment company. As of April 30, 2018, the Trust consists of thirty-three active series, one of which is presented in this filing: American Beacon Small Cap Value Fund (the “Fund”). The remaining thirty-two active series are reported in separate filings.

American Beacon Advisors, Inc. (the “Manager”) is a wholly-owned subsidiary of Resolute Investment Managers, Inc., which is indirectly owned by investment funds affiliated with Kelso & Company, L.P. and Estancia Capital Management, LLC, and was organized in 1986 to provide business management, advisory, administrative, and asset management consulting services to the Trust and other investors.

Class Disclosure

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

Class	Eligible Investors	Minimum Initial Investments
Institutional	Large institutional investors - sold directly or through intermediary channels.	$	250,000
Y Class	Large institutional retirement plan investors - sold directly or through intermediary channels.	$	100,000
Investor	All investors using intermediary organizations, such as broker-dealers or retirement plan sponsors.	$	2,500
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
R6	Large institutional retirement plan investors - sold through retirement plan sponsors.		None

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 on the basis of 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 Financial Accounting Standards Board Accounting Standard Codification Topic 946, Financial Services – Investment Companies, a part of Generally Accepted Accounting Principles (“U.S. GAAP”).

28

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Security Transactions and Investment Income

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

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

Distributions to Shareholders

Distributions, if any, of net investment income are generally paid at least annually and recorded on the ex-dividend date. Distributions, if any, of net realized capital gains are generally paid at least annually and recorded on the ex-dividend date. 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 a Fund’s investment advisor chooses to execute a transaction through a participating broker, the broker rebates a portion of the commission back to the Fund. Any collateral benefit received through participation in the commission recapture program is directed exclusively to the Fund. This amount is reported with the net realized gain in the Fund’s Statement of Operations, if applicable.

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 any 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.

29

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

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; Brandywine Global Investment Management, LLC; Foundry Partners, LLC; Hillcrest Asset Management, LLC; Hotchkis and Wiley Capital Management, LLC; and BNY Mellon Asset Management North America Corporation (“Sub-Advisors”) 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 period ended April 30, 2018 were as follows:

	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.35	%	$	12,413,066
Sub-Advisor Fees		0.40	%		13,539,413
Total		0.75	%	$	25,952,479

As compensation for services provided by the Manager in connection with securities lending activities conducted by the Fund, the lending Fund pays to the Manager, with respect to cash collateral posted by borrowers, a fee up to 10% of the net monthly interest income (the gross interest income earned by the investment of cash collateral, less the amount paid to borrowers and related expenses) from such activities and, with respect to loan fees paid by borrowers, a fee up to 10% of such loan fees. These fees are included in “Income derived from securities lending” and “Management and investment advisory fees” on the Statement of Operations. During the period ended April 30, 2018, the Manager received securities lending fees of $151,657 for the securities lending activities of the Fund.

Distribution Plans

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

Separate Distribution Plans (the “Distribution Plans”) have been adopted pursuant to Rule 12b-1 under the Act for the Advisor, A, and C Classes of the Fund. Under the Distribution Plans, as compensation for distribution 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.

30

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Service Plans

The Manager and the Trust entered into Service Plans that obligate 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 Plans, 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.

Sub-Transfer Agent Fees

The Manager has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Institutional and Y Classes of the Fund and has agreed to compensate the intermediaries for providing these services. Intermediaries transact with the Fund primarily through the use of omnibus accounts on behalf of their 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 the Board approval, has agreed to reimburse the Manager for certain non-distribution shareholder services provided by financial intermediaries for the Institutional and Y Classes. The reimbursement amounts (sub-transfer agent fees) paid to the Manager are subject to a fee limit of up to 0.10% of an intermediary’s average net assets in the Institutional and Y Classes on an annual basis. During the period ended April 30, 2018, the sub-transfer agent fees, as reflected in “Transfer agent fees” on the Statement of Operations, were as follows:

Fund	Sub-Transfer Agent Fees
Small Cap Value	$	848,118

As of April 30, 2018, 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
Small Cap Value	$	97,529

Brokerage Commissions

Affiliated entities of a sub-advisor to the Fund received net commissions on purchases and sales of the Fund’s portfolio securities totaling $62,578 for the period ended April 30, 2018.

Investments in Affiliated Funds

The Fund may invest in the American Beacon U.S. Government Money Market Select Fund (the “USG Select Fund”). Cash collateral received by the Fund in connection with securities lending may also be invested in the USG Select Fund. The Fund and the USG Select Fund have the same investment advisor and therefore, are considered to be affiliated. The Manager serves as investment advisor to the USG Select Fund and receives management fees and administrative fees totaling 0.10% of the average daily net assets of the USG Select Fund. During the period ended April 30, 2018, 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 in USG Select Fund		Total
Small Cap Value	$	120,492	$	103,715	$	224,207

31

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Interfund Credit Facility

Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), the Fund, along with other registered investment companies having management contracts with the Manager, may participate in a credit facility whereby each Fund, under certain conditions, is permitted to lend money directly to and borrow directly from other participating Funds for temporary purposes. The interfund credit facility is advantageous to the Fund because it provides added liquidity, and eliminates the need to maintain higher cash balances to meet redemptions. This situation could arise when shareholder redemptions exceed anticipated volumes and certain funds have insufficient cash on hand to satisfy such redemptions or when sales of securities do not settle as expected, resulting in a cash shortfall for a fund. When a Fund liquidates portfolio securities to meet redemption requests, they often do not receive payment in settlement for up to two days (or longer for certain foreign transactions). Redemption requests normally are satisfied on the next business day. The credit facility provides a source of immediate, short-term liquidity pending settlement of the sale of portfolio securities. The credit facility is administered by a credit facility team consisting of professionals from the Manager’s asset management, compliance, and accounting areas who report the activities of the credit facility to the Board. During the period ended April 30, 2018, the Fund did not utilize the credit facility.

Expense Reimbursement Plan

The Fund has adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of such fee reductions and expense reimbursements. Under the policy, the Manager can be reimbursed by the Fund for any contractual or voluntary fee reductions or expense reimbursements if reimbursement to the Manager (a) occurs within three years after the Manager’s own waiver or reimbursement and (b) does not cause the Fund’s annual operating expenses to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or time of recoupment. During the period ended April 30, 2018 there were no waived fees, expenses reimbursed, or recouped expenses.

The Distributor

Effective March 1, 2018, Resolute Investment Distributors, Inc. (“RID” or “Distributor”) replaced Foreside Fund Services, LLC (“Foreside”) as the Fund(s)’ distributor and principal underwriter of the Fund’s shares.

RID is a registered broker-dealer and is a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”). The Distributor is affiliated with the Manager through common ownership. Under a Distribution Agreement with the Trust, the Distributor acts as the distributor and principal underwriter of the Trust in connection with the continuous offering of shares of the Fund. The Distributor continually distributes shares of the Fund on a best efforts basis. The Distributor has no obligation to sell any specific quantity of the Fund’s shares. Pursuant to the Distribution Agreement, to the extent applicable, the Distributor receives, and may re-allow to broker-dealers, all or a portion of the sales charge paid by the purchasers of A Class and C Class shares. For A Class and C Class shares, the Distributor receives commission revenue consisting of the portion of A Class and C Class sales charge remaining after the allowances by the Distributor to the broker-dealers. The Distributor retains any portion of the commission fees that are not paid to the broker-dealers for use solely to pay distribution related expenses.

Prior to March 1, 2018, Foreside served as the distributor and principal underwriter of the Fund’s shares. Pursuant to a Sub-Administration Agreement between Foreside and the Manager in effect through February 28, 2018, Foreside received a fee from the Manager for providing administrative services in connection with the marketing and distribution of shares of the Trust, including the registration of Manager employees as registered representatives of Foreside to facilitate distribution of Fund shares. Foreside also received a fee from the Manager under a Marketing Agreement pursuant to which Foreside provided services in connection with the marketing of a Fund to institutional investors. Pursuant to the Distribution Agreement with the Trust in effect through February 28, 2018, Foreside received, and may have re-allowed to broker-dealers, all or a portion of the sales

32

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

charge paid by the purchasers of A and C Class shares. For A and C Class shares, Foreside received commission revenues consisting of the portion of A and C Class sales charge remaining after the allowances by Foreside to the broker dealers. Foreside retained any portion of the commission fees that were not paid to the broker-dealers for use solely to pay distribution related expenses.

Sales Commissions

The Fund’s Distributor, formerly Foreside, may receive a portion of A Class sales charges from broker dealers and it may be used to offset distribution related expenses. During the period ended February 28, 2018, Foreside collected $3,562 for the Fund from the sale of Class A Shares. During the period March 1, 2018 through April 30, 2018, RID collected $391 for the Fund from the sale of Class A Shares.

A CDSC of 0.50% will be deducted with respect to Class A Shares on certain purchases of $1,000,000 or more that are redeemed in whole or part within 18 months of purchase, unless waived as discussed in the Fund’s Prospectus. Any applicable CDSC will be 0.50% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended April 30, 2018, there were no CDSC fees collected for Class A Shares of the Fund.

A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived as discussed in the Fund’s Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended February 28, 2018, Foreside collected CDSC fees of $229 for Class C Shares of the Fund. During the period March 1, 2018 through April 30, 2018, RID collected $187 for Class C Shares of the Fund.

Trustee Fees and Expenses

As compensation for their service to the Trust, American Beacon Select Funds, American Beacon Institutional Funds Trust, and American Beacon Sound Point Enhanced Income Fund, each Trustee receives an annual retainer of $120,000, plus $10,000 for each Board meeting attended in person or via teleconference, $2,500 for attendance by Committee members at meetings of the Audit Committee and the Investment Committee, and $1,500 for attendance by Committee members at meetings of the Nominating and Governance Committee, plus reimbursement of reasonable expenses incurred in attending Board meetings, Committee meetings, and relevant educational seminars. The Trustees also may be compensated for attendance at special Board and/or Committee meetings from time to time. The Board Chairman receives an additional annual retainer of $50,000 as well as a $2,500 fee each quarter for his attendance at the committee meetings. Effective January 1, 2018, the Board Vice Chair receives an additional annual retainer of $10,000. The Chairpersons of the Audit Committee and the Investment Committee each receive an additional annual retainer of $25,000 and the Chairman of the Nominating and Governance Committee receives an additional annual retainer of $10,000. These expenses are allocated on a prorated basis to each Fund of the Trusts according to its respective net assets.

3.  Security Valuation and Fair Value Measurements

The price of the Fund’s shares is based on the Fund’s Net Asset Value (“NAV”). The NAV of the Fund, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Fund or class, by the total number of shares outstanding of the Fund or class.

Investments are valued at the close of the New York Stock Exchange (the “Exchange”), normally at 4:00 p.m. Eastern Time, each day that the Exchange is open for business. Equity securities, including exchange-traded funds (“ETFs”) for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade.

33

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Investments in open-end mutual funds are valued at the closing NAV per share of the mutual fund on the day of valuation.

Securities for which the market prices are not readily available or are not reflective of the fair value of the security, as determined by the Manager, will be priced at fair value following procedures approved by the Board.

Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to deposit with their futures broker, an amount of cash or U.S. Government and Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked-to-market daily and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized, but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statement of Assets and Liabilities.

Other investments for which the above valuation procedures are inappropriate or are deemed not to reflect fair value, are stated at fair value as determined in good faith by the Manager’s Valuation Committee, pursuant to procedures established by the Board.

Valuation Inputs

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

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

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

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

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

Level 3 trading assets and trading liabilities, at fair value

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

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

34

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

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

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

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

4.  Securities and Other Investments

American Depositary Receipts

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

Common Stock

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

35

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

their own business and make required payments to bondholders and on other debt and preferred stock. Therefore, the value of a company’s common stock will usually be more volatile than its bonds, other debt and preferred stock. Common stock may be exchange-traded or over-the-counter (“OTC”). OTC stock may be less liquid than exchange-traded stock.

Other Investment Company Securities and Other Exchange-Traded Products

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

Real Estate Investment Trusts

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

5.  Financial Derivative Instruments

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

Futures Contracts

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

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

36

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

During the period ended April 30, 2018, the Fund entered into future contracts primarily for exposing cash to markets.

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

Average Futures Contracts Outstanding
Fund	Period Ended April 30, 2018
Small Cap Value		2,806

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

Fair values of financial instruments on the Statement of Assets and Liabilities as of April 30, 2018:
	Derivatives not accounted for as hedging instruments
Liabilities:	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Payable for variation margin from open futures contracts(2)		$	–		$	–		$	–		$	–		$	(5,005,355	)		$	(5,005,355	)
The effect of financial derivative instruments on the Statement of Operations as of April 30, 2018:
	Derivatives not accounted for as hedging instruments
Realized gain (loss) from derivatives recognized as a result of operations	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Futures contracts		$	–		$	–		$	–		$	–		$	11,406,617			$	11,406,617
Net change in unrealized appreciation (depreciation) of derivatives recognized as a result from operations:	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Futures contracts		$	–		$	–		$	–		$	–		$	(11,566,695	)		$	(11,566,695	)

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

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

6. Principal Risks

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

Equity Investment Risk

Equity securities are subject to market risk. The Fund’s investments in equity securities may include common stocks, preferred stocks, securities convertible into or exchangeable for common stocks, REITs, depositary receipts, and U.S. dollar-denominated foreign stocks traded on U.S. exchanges. Such investments may expose the Fund to additional risk. The value of a company’s common stock may fall as a result of factors affecting the company, companies in the same industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company. Preferred stocks and convertible securities are sensitive to movements in interest rates. Preferred stocks may be less liquid than common stocks and, unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred stocks generally are payable at the discretion of an issuer and after required payments to bond holders. Convertible securities are subject to the risk that the credit standing of the issuer may have an effect on the convertible securities’ investment

37

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

value. Investments in REITs are subject to the risks associated with investing in the real estate industry such as adverse developments affecting the real estate industry and real property values. Depositary receipts and U.S. dollar-denominated foreign stocks traded on U.S. exchanges are subject to certain of the risks associated with investing directly in foreign securities, including, but not limited to, currency fluctuations and political and financial instability in the home country of a particular depositary receipt or foreign stock.

Foreign Investing Risk

Non-U.S. investments carry potential risks not associated with U.S. investments. Such risks include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity and greater volatility, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased price volatility, (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets.

Futures Contracts Risk

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

Market Risk

Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in fixed income instruments experiencing unusual liquidity issues, increased price volatility and, in some cases, credit downgrades and increased likelihood of default. These events have reduced the willingness and ability of some lenders to extend credit, and have made it more difficult for some borrowers to obtain financing on attractive terms, if at all. In addition, global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely impact issuers in a different country or region. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasi-governmental organizations.

In addition, political events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree. High public debt in the U.S. and other countries creates ongoing systemic and market risks and policymaking uncertainty. Because the impact on the markets has been widespread, it may be difficult to identify both risks and opportunities using past models of the interplay of market forces, or to predict the duration of these market conditions. Interest rates have been unusually low in recent years in the U.S. and abroad. Because there is little precedent for this situation, it is difficult to predict the impact on various markets of a significant rate increase, whether brought about by U.S. policy makers or by dislocations in world markets. In addition, there is a risk that the prices of goods and services in the U.S. and many foreign economies may decline over time, known as deflation (the opposite of inflation). Deflation may have an adverse effect on stock prices and creditworthiness and may make defaults on debt more likely.

Multiple Sub-Advisor Risk

The Manager may allocate the Fund’s assets among multiple sub-advisors, each of which is responsible for investing its allocated portion of the Fund’s assets. To a significant extent, the Fund’s performance will depend on

38

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

the success of the Manager in allocating the Fund’s assets to sub-advisors and its selection and oversight of the sub-advisors. Because each sub-adviser manages its allocated portion of the Fund independently from another sub-adviser, the same security may be held in different portions of the Fund, or may be acquired for one portion of the Fund at a time when a sub-adviser to another portion deems it appropriate to dispose of the security from that other portion, resulting in higher expenses without accomplishing any net result in the Fund’s holdings. Similarly, under some market conditions, one sub-adviser may believe that temporary, defensive investments in short-term instruments or cash are appropriate when another sub-adviser believes continued exposure to the equity or debt markets is appropriate for its allocated portion of the Fund. Because each sub-adviser directs the trading for its own portion of the Fund, and does not aggregate its transactions with those of the other sub-advisors, the Fund may incur higher brokerage costs than would be the case if a single sub-adviser were managing the entire Fund. In addition, while the Manager seeks to allocate the Fund’s assets among the Fund’s sub-advisors in a manner that it believes is consistent with achieving the Fund’s investment objective(s), the Manager may be subject to potential conflicts of interest in allocating the Fund’s assets among sub-advisors.

Other Investment Companies Risk

The Fund may invest in shares of other registered investment companies, including ETFs and money market funds that are advised by the Manager. To the extent that the Fund invests in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses charged by those investment companies in addition to the Fund’s direct fees and expenses and will be subject to the risks associated with investments in those companies. For example, ETF shares may trade at a premium or discount to their net asset value. An ETF that tracks an index may not precisely replicate the returns of its benchmark index.

Securities Lending Risk

To the extent the Fund lends its securities, it may be subject to the following risks; i) borrowers of the Fund’s securities typically provide collateral in the form of cash that is reinvested in securities, ii) the securities in which the collateral is invested may not perform sufficiently to cover the return collateral payments owed to borrowers, iii) delays may occur in the recovery of securities from borrowers, which could interfere with the Fund’s ability to vote proxies or to settle transactions, and iv) there is the risk of possible loss of rights in the collateral should the borrower fail financially.

Sector Risk

Sector risk is the risk associated with a Fund holding a significant amount of investments in similar businesses, which would be similarly affected by particular economic or market events, which may, in certain circumstances, cause the value of the equity and debt securities of companies in a particular sector of the market to change. To the extent a Fund has substantial holdings within a particular sector, the risks to a Fund associated with that sector increase.

To the extent a Fund invests in the financial services sector, the value of the Fund’s shares may be particularly vulnerable to factors affecting that sector, such as the availability and cost of capital funds, changes in interest rates, the rate of corporate and consumer debt defaults, extensive government regulation and price competition. The value of a Fund’s shares could experience significantly greater volatility than investment companies investing more broadly.

Offsetting Assets and Liabilities

The Fund is a party to enforceable master netting agreements between brokers and counterparties which provide for the right to offset under certain circumstances. The Fund employs multiple money managers and counterparties and has elected not to offset qualifying financial and derivative instruments on the Statement of Assets and Liabilities, as such all financial and derivative instruments are presented on a gross basis. The impacts of netting arrangements that provide the right to offset are detailed below. The net amount represents the net

39

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

receivable or payable that would be due from or to the counterparty in the event of default. Exposure from borrowings and other financing agreements such as repurchase agreements can only be netted across transactions governed by the same Master Agreement with the same legal entity. All amounts reported below represent the balance as of the report date, April 30, 2018.

Offsetting of Financial and Derivative Assets as of April 30, 2018:
	Assets		Liabilities
Futures Contracts	$	-	$	5,005,355
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	-	$	5,005,355
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)	$	-	$	(5,005,355	)

	Remaining Contractual Maturity of the Agreements As of April 30, 2018
	Overnight and Continuous		<30 days		Between 30 & 90 days		>90 days		Total
Securities Lending Transactions
Common Stocks	$	181,319,674	$	-	$	-	$	-	$	181,319,674
Total Borrowings	$	181,319,674	$	-	$	-	$	-	$	181,319,674
Gross amount of recognized liabilities for securities lending transactions									$	181,319,674

7. Federal Income and Excise Taxes

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

The Fund does not have any unrecorded tax liabilities in the accompanying financial statements. Each of the tax years in the four year period ended October 31, 2017 remain subject to examination by the Internal Revenue Service. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statement of Operations.

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

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

As of April 30, 2018 the tax cost for the Fund and their respective gross unrealized appreciation (depreciation) were as follows:

Fund	Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Small Cap Value	$	6,056,383,241	$	1,301,263,321	$	(248,770,640	)	$	1,052,492,681

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

For the period ended October 31, 2017, the Fund did not have any capital loss carryforwards.

40

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

8. Investment Transactions

The aggregate cost of purchases and proceeds from sales and maturities of investments, other than short-term obligations, for the period ended April 30, 2018 were as follows:

Fund	Purchases (non-U.S. Government Securities)		Sales (non-U.S. Government Securities)
Small Cap Value	$	2,236,025,010	$	2,397,642,318

A summary of the Fund’s transactions in the USG Select Fund for the period ended April 30, 2018 were as follows:

Fund	Type of Transaction	October 31, 2017 Shares/Fair Value		Purchases		Sales		April 30, 2018 Shares/Fair Value		Dividend Income
Small Cap Value	Direct	$	209,651,676	$	935,730,904	$	895,203,629	$	250,178,951	$	1,544,857
Small Cap Value	Securities Lending		236,088,074		498,117,796		552,886,196		181,319,674		N/A

9.  Securities Lending

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

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

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

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

Securities lending transactions pose certain risks to the Fund, including that the borrower may not provide additional collateral when required or return the securities when due, that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower, that non-cash collateral

41

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

may be subject to legal constraints in the event of a borrower bankruptcy, and that the cash collateral investments could become illiquid and unable to be used to return collateral to the borrower. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the cash collateral available for return to the borrower and any action which impairs its ability to liquidate non-cash collateral to satisfy a borrower default.

As of April 30, 2018, the value of outstanding securities on loan and the value of collateral were as follows:

Fund	Market Value of Securities on Loan		Cash Collateral Received		Non-Cash Collateral Received		Total Collateral Received
Small Cap Value	$	173,944,582	$	181,319,674	$	–	$	181,319,674

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

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

10. Borrowing Arrangements

Effective November 16, 2017, the Fund, along with certain other funds managed by the Manager (“Participating Funds”), entered into a committed revolving line of credit (the “Committed Line”) agreement with State Street Bank and Trust Company (the “Bank”) to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Committed Line is $50 million with interest at a rate equal to the higher of (a) one-month London Inter-Bank Offered Rate (“LIBOR”) plus 1.25% per annum or (b) the Federal Funds rate plus 1.25% per annum on amounts borrowed. Each of the Participating Funds will pay a commitment fee at a rate of 0.25% per annum on the unused portion of the Committed Line amount. The Committed Line expires November 15, 2018, unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

Effective November 16, 2017, the Fund, along with certain other Participating Funds managed by the Manager, entered into an uncommitted discretionary demand revolving line of credit (the “Uncommitted Line”) agreement with the Bank to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Uncommitted Line is $50 million with interest at a rate equal to the higher of (a) one-month LIBOR plus 1.25% per annum or (b) the Federal Funds rate. The Uncommitted Line expires November 15, 2018 unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

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

During the period ended April 30, 2018, the Fund did not utilize this facility.

42

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

11.  Capital Share Transactions

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

	Institutional Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Small Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		17,560,227		$	491,083,890			49,422,685		$	1,376,685,742
Reinvestment of dividends		16,834,083			466,809,134			5,798,690			161,493,508
Shares redeemed		(29,213,479	)		(821,471,679	)		(61,608,781	)		(1,720,366,623	)
Net increase (decrease) in shares outstanding		5,180,831		$	136,421,345			(6,387,406	)	$	(182,187,373	)
	Y Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Small Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		2,465,147		$	67,789,460			5,596,098		$	152,304,889
Reinvestment of dividends		1,202,236			32,893,173			377,530			10,385,850
Shares redeemed		(2,651,578	)		(72,579,098	)		(5,257,927	)		(143,345,782	)
Net increase in shares outstanding		1,015,805		$	28,103,535			715,701		$	19,344,957
	Investor Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Small Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		1,616,082		$	43,759,952			5,842,502		$	156,520,663
Reinvestment of dividends		2,130,538			56,927,968			705,910			19,003,095
Shares redeemed		(4,407,286	)		(118,449,928	)		(9,608,715	)		(256,230,663	)
Net (decrease) in shares outstanding		(660,666	)	$	(17,762,008	)		(3,060,303	)	$	(80,706,905	)
	Advisor Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Small Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		415,737		$	11,102,013			1,009,536		$	26,701,726
Reinvestment of dividends		330,358			8,714,846			129,599			3,448,634
Shares redeemed		(670,595	)		(17,837,421	)		(2,369,756	)		(62,775,350	)
Net increase (decrease) in shares outstanding		75,500		$	1,979,438			(1,230,621	)	$	(32,624,990	)
	A Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Small Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		840,801		$	22,609,385			1,059,496		$	27,970,034
Reinvestment of dividends		241,813			6,345,165			66,206			1,754,460
Shares redeemed		(502,831	)		(13,357,712	)		(1,591,955	)		(41,214,901	)
Net increase (decrease) in shares outstanding		579,783		$	15,596,838			(466,253	)	$	(11,490,407	)
	C Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Small Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		50,091		$	1,286,125			226,407		$	5,808,095
Reinvestment of dividends		53,040			1,339,793			11,793			303,207
Shares redeemed		(79,407	)		(2,035,689	)		(203,109	)		(5,189,248	)
Net increase in shares outstanding		23,724		$	590,229			35,091		$	922,054

43

American Beacon Small Cap Value Fund^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

	R6 Class
	Six Months Ended April 30, 2018						February 28, 2017A to October 31, 2017
	(unaudited)
Small Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		12,139,833		$	343,258,197			10,184,651		$	295,604,089
Reinvestment of dividends		1,281,161			35,513,778			-			-
Shares redeemed		(1,980,324	)		(54,682,915	)		(160,657	)		(4,684,883	)
Net increase in shares outstanding		11,440,670		$	324,089,060			10,023,994		$	290,919,206

^A Commencement of operations.

12.  Subsequent Events

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

44

American Beacon Small Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Institutional Class
	Six Months Ended April 30, 2018			Year Ended October 31,
				2017			2016B			2015			2014C			2013
	(unaudited)
Net asset value, beginning of period	$	29.51		$	24.36		$	24.69		$	27.80		$	28.04		$	21.04
Income from investment operations:
Net investment income		0.10			0.17			0.23			0.24			0.17			0.25
Net gains on investments (both realized and unrealized)		0.14			5.83			0.79			0.02			2.18			7.60
Total income from investment operations		0.24			6.00			1.02			0.26			2.35			7.85
Less distributions:
Dividends from net investment income		(0.15	)		(0.23	)		(0.20	)		(0.19	)		(0.14	)		(0.27	)
Distributions from net realized gains		(2.49	)		(0.62	)		(1.15	)		(3.18	)		(2.45	)		(0.58	)
Total distributions		(2.64	)		(0.85	)		(1.35	)		(3.37	)		(2.59	)		(0.85	)
Net asset value, end of period	$	27.11		$	29.51		$	24.36		$	24.69		$	27.80		$	28.04
Total returnD		0.64	%E		24.80	%		4.58	%		0.87	%		8.78	%		38.59	%
Ratios and supplemental data:
Net assets, end of period	$	5,217,419,465		$	5,527,380,111		$	4,717,291,753		$	4,313,522,956		$	4,002,884,144		$	3,430,107,382
Ratios to average net assets:
Expenses, before reimbursements		0.80	%F		0.82	%		0.83	%		0.81	%		0.80	%		0.82	%
Expenses, net of reimbursements		0.80	%F		0.82	%		0.83	%		0.81	%		0.80	%		0.82	%
Net investment income, before expense reimbursements		0.73	%F		0.58	%		1.01	%		0.99	%		0.67	%		1.01	%
Net investment income, net of reimbursements		0.73	%F		0.58	%		1.01	%		0.99	%		0.67	%		1.01	%
Portfolio turnover rate		33	%E		48	%		53	%		47	%		73	%		48	%

^A On June 20, 2016, Dreman Value Management, LLC was terminated and ceased managing assets of the Small Cap Value Fund, and was replaced by Foundry Asset Management.

^B On August 19, 2014, Opus Capital Group, LLC was terminated and ceased managing assets of the Small Cap Value Fund. On March 17, 2014, Barrow Hanley, Mewhinney & Strauss, LLC began managing additional assets of the Small Cap Value Fund. On September 19, 2014, Hillcrest Asset Management, LLC began managing assets of the Small Cap Value Fund.

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

^D Not annualized.

^E Annualized.

See accompanying notes

45

American Beacon Small Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Y Class
	Six Months Ended April 30, 2018			Year Ended October 31,
				2017			2016A			2015			2014B			2013
	(unaudited)
Net asset value, beginning of period	$	29.13		$	24.06		$	24.41		$	27.52		$	27.81		$	20.89
Income from investment operations:
Net investment income		0.09			0.12			0.23			0.23			0.18			0.22
Net gains on investments (both realized and unrealized)		0.15			5.78			0.76			0.01			2.12			7.55
Total income from investment operations		0.24			5.90			0.99			0.24			2.30			7.77
Less distributions:
Dividends from net investment income		(0.14	)		(0.21	)		(0.19	)		(0.17	)		(0.14	)		(0.27	)
Distributions from net realized gains		(2.49	)		(0.62	)		(1.15	)		(3.18	)		(2.45	)		(0.58	)
Total distributions		(2.63	)		(0.83	)		(1.34	)		(3.35	)		(2.59	)		(0.85	)
Net asset value, end of period	$	26.74		$	29.13		$	24.06		$	24.41		$	27.52		$	27.81
Total returnC		0.62	%D		24.70	%		4.49	%		0.79	%		8.67	%		38.45	%
Ratios and supplemental data:
Net assets, end of period	$	375,345,589		$	379,409,116		$	296,082,333		$	251,360,287		$	190,416,114		$	122,849,739
Ratios to average net assets:
Expenses, before reimbursements		0.87	%E		0.90	%		0.90	%		0.90	%		0.89	%		0.91	%
Expenses, net of reimbursements		0.87	%E		0.90	%		0.90	%		0.90	%		0.89	%		0.91	%
Net investment income, before expense reimbursements		0.67	%E		0.50	%		0.94	%		0.90	%		0.58	%		0.74	%
Net investment income, net of reimbursements		0.67	%E		0.50	%		0.94	%		0.90	%		0.58	%		0.74	%
Portfolio turnover rate		33	%D		48	%		53	%		47	%		73	%		48	%

^A  On June 20, 2016, Dreman Value Management, LLC was terminated and ceased managing assets of the Small Cap Value Fund, and was replaced by Foundry Asset Management.

^B  On August 19, 2014, Opus Capital Group, LLC was terminated and ceased managing assets of the Small Cap Value Fund. On March 17, 2014, Barrow Hanley, Mewhinney & Strauss, LLC began managing additional assets of the Small Cap Value Fund. On September 19, 2014, Hillcrest Asset Management, LLC began managing assets of the Small Cap Value Fund.

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

^D  Not annualized.

^E  Annualized.

See accompanying notes

46

American Beacon Small Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Investor Class
	Six Months Ended April 30, 2018			Year Ended October 31,
				2017			2016A			2015			2014B			2013
	(unaudited)
Net asset value, beginning of period	$	28.46		$	23.52		$	23.86		$	26.96		$	27.27		$	20.47
Income (loss) from investment operations:
Net investment income		0.07			0.11			0.19			0.18			0.10			0.18
Net gains (losses) on investments (both realized and unrealized)		0.12			5.60			0.73			(0.02	)		2.09			7.38
Total income (loss) from investment operations		0.19			5.71			0.92			0.16			2.19			7.56
Less distributions:
Dividends from net investment income		(0.07	)		(0.15	)		(0.11	)		(0.08	)		(0.05	)		(0.18	)
Distributions from net realized gains		(2.49	)		(0.62	)		(1.15	)		(3.18	)		(2.45	)		(0.58	)
Total distributions		(2.56	)		(0.77	)		(1.26	)		(3.26	)		(2.50	)		(0.76	)
Net asset value, end of period	$	26.09		$	28.46		$	23.52		$	23.86		$	26.96		$	27.27
Total returnC		0.46	%D		24.43	%		4.27	%		0.50	%		8.40	%		38.11	%
Ratios and supplemental data:
Net assets, end of period	$	588,093,536		$	660,241,571		$	617,552,712		$	723,044,801		$	851,731,763		$	934,041,370
Ratios to average net assets:
Expenses, before reimbursements		1.11	%E		1.12	%		1.14	%		1.15	%		1.16	%		1.18	%
Expenses, net of reimbursements		1.11	%E		1.12	%		1.14	%		1.15	%		1.16	%		1.18	%
Net investment income, before expense reimbursements		0.43	%E		0.27	%		0.70	%		0.67	%		0.33	%		0.73	%
Net investment income, net of reimbursements		0.43	%E		0.27	%		0.70	%		0.67	%		0.33	%		0.73	%
Portfolio turnover rate		33	%D		48	%		53	%		47	%		73	%		48	%

^A On June 20, 2016, Dreman Value Management, LLC was terminated and ceased managing assets of the Small Cap Value Fund, and was replaced by Foundry Asset Management.

^B On August 19, 2014, Opus Capital Group, LLC was terminated and ceased managing assets of the Small Cap Value Fund. On March 17, 2014, Barrow Hanley, Mewhinney & Strauss, LLC began managing additional assets of the Small Cap Value Fund. On September 19, 2014, Hillcrest Asset Management, LLC began managing assets of the Small Cap Value Fund.

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

^D Not annualized.

^E Annualized.

See accompanying notes

47

American Beacon Small Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Advisor ClassA
	Six Months Ended April 30, 2018			Year Ended October 31,
				2017			2016B			2015			2014C			2013
	(unaudited)
Net asset value, beginning of period	$	28.09		$	23.22		$	23.60		$	26.69		$	27.06		$	20.35
Income from investment operations:
Net investment income		0.03			0.03			0.12			0.13			0.06			0.14
Net gains on investments (both realized and unrealized)		0.13			5.57			0.73			0.01			2.07			7.34
Total income from investment operations		0.16			5.60			0.85			0.14			2.13			7.48
Less distributions:
Dividends from net investment income		(0.01	)		(0.11	)		(0.08	)		(0.05	)		(0.05	)		(0.19	)
Distributions from net realized gains		(2.49	)		(0.62	)		(1.15	)		(3.18	)		(2.45	)		(0.58	)
Total distributions		(2.50	)		(0.73	)		(1.23	)		(3.23	)		(2.50	)		(0.77	)
Net asset value, end of period	$	25.75		$	28.09		$	23.22		$	23.60		$	26.69		$	27.06
Total returnD		0.38	%E		24.26	%		4.01	%		0.41	%		8.22	%		37.93	%
Ratios and supplemental data:
Net assets, end of period	$	92,439,111		$	98,718,359		$	110,205,158		$	98,224,328		$	102,681,998		$	88,032,906
Ratios to average net assets:
Expenses, before reimbursements		1.29	%F		1.30	%		1.31	%		1.31	%		1.29	%		1.31	%
Expenses, net of reimbursements		1.29	%F		1.30	%		1.31	%		1.31	%		1.29	%		1.31	%
Net investment income, before expense reimbursements		0.25	%F		0.11	%		0.53	%		0.51	%		0.18	%		0.46	%
Net investment income, net of reimbursements		0.25	%F		0.11	%		0.53	%		0.51	%		0.18	%		0.46	%
Portfolio turnover rate		33	%E		48	%		53	%		47	%		73	%		48	%

^A On January 15, 2016, the Retirement Class closed and the assets were merged into the Advisor Class.

^B On June 20, 2016, Dreman Value Management, LLC was terminated and ceased managing assets of the Small Cap Value Fund, and was replaced by Foundry Asset Management.

^C On August 19, 2014, Opus Capital Group, LLC was terminated and ceased managing assets of the Small Cap Value Fund. On March 17, 2014, Barrow Hanley, Mewhinney & Strauss, LLC began managing additional assets of the Small Cap Value Fund. On September 19, 2014, Hillcrest Asset Management, LLC began managing assets of the Small Cap Value Fund.

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

^E Not annualized.

^F Annualized.

See accompanying notes

48

American Beacon Small Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	A Class
	Six Months Ended April 30, 2018			Year Ended October 31,
				2017			2016A			2015			2014B			2013
	(unaudited)
Net asset value, beginning of period	$	27.99		$	23.14		$	23.54		$	26.63		$	27.03		$	20.35
Income from investment operations:
Net investment income		0.05			0.07			0.15			0.13			0.11			0.16
Net gains on investments (both realized and unrealized)		0.13			5.53			0.73			0.02			2.03			7.30
Total income from investment operations		0.18			5.60			0.88			0.15			2.14			7.46
Less distributions:
Dividends from net investment income		(0.06	)		(0.13	)		(0.13	)		(0.06	)		(0.09	)		(0.20	)
Distributions from net realized gains		(2.49	)		(0.62	)		(1.15	)		(3.18	)		(2.45	)		(0.58	)
Total distributions		(2.55	)		(0.75	)		(1.28	)		(3.24	)		(2.54	)		(0.78	)
Net asset value, end of period	$	25.62		$	27.99		$	23.14		$	23.54		$	26.63		$	27.03
Total returnC		0.43	%D		24.36	%		4.17	%		0.45	%		8.30	%		37.83	%
Ratios and supplemental data:
Net assets, end of period	$	72,961,773		$	63,481,305		$	63,277,387		$	54,815,183		$	29,569,753		$	13,417,645
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.17	%E		1.20	%		1.21	%		1.21	%		1.27	%		1.35	%
Expenses, net of reimbursements or recoupments		1.17	%E		1.20	%		1.21	%		1.22	%		1.27	%		1.32	%
Net investment income, before expense reimbursements or recoupments		0.36	%E		0.20	%		0.64	%		0.56	%		0.19	%		0.30	%
Net investment income, net of reimbursements or recoupments		0.36	%E		0.20	%		0.64	%		0.54	%		0.20	%		0.34	%
Portfolio turnover rate		33	%D		48	%		53	%		47	%		73	%		48	%

^A On June 20, 2016, Dreman Value Management, LLC was terminated and ceased managing assets of the Small Cap Value Fund, and was replaced by Foundry Asset Management.

^B On August 19, 2014, Opus Capital Group, LLC was terminated and ceased managing assets of the Small Cap Value Fund. On March 17, 2014, Barrow Hanley, Mewhinney & Strauss, LLC began managing additional assets of the Small Cap Value Fund. On September 19, 2014, Hillcrest Asset Management, LLC began managing assets of the Small Cap Value Fund.

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

^D Not annualized.

^E Annualized.

See accompanying notes

49

American Beacon Small Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	C Class
	Six Months Ended April 30, 2018			Year Ended October 31,
				2017			2016A			2015			2014B			2013
	(unaudited)
Net asset value, beginning of period	$	26.98		$	22.39		$	22.84		$	26.05		$	26.60		$	20.07
Income (loss) from investment operations:
Net investment income (loss)		-			(0.14	)		(0.02	)		0.03			(0.07	)		0.03
Net gains (losses) on investments (both realized and unrealized)		0.11			5.35			0.72			(0.06	)		1.97			7.17
Total income (loss) from investment operations		0.11			5.21			0.70			(0.03	)		1.90			7.20
Less distributions:
Dividends from net investment income		-			-			-			-			-			(0.09	)
Distributions from net realized gains		(2.49	)		(0.62	)		(1.15	)		(3.18	)		(2.45	)		(0.58	)
Total distributions		(2.49	)		(0.62	)		(1.15	)		(3.18	)		(2.45	)		(0.67	)
Net asset value, end of period	$	24.60		$	26.98		$	22.39		$	22.84		$	26.05		$	26.60
Total returnC		0.18	%D		23.39	%		3.42	%		(0.31	)%		7.46	%		36.88	%
Ratios and supplemental data:
Net assets, end of period	$	14,569,083		$	15,335,554		$	11,938,196		$	11,718,580		$	9,676,368		$	6,396,419
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.65	%E		1.96	%		1.96	%		1.97	%		2.03	%		2.09	%
Expenses, net of reimbursements or recoupments		1.65	%E		1.96	%		1.96	%		1.98	%		2.03	%		2.07	%
Net investment (loss), before expense reimbursements or recoupments		(0.12	)%E		(0.58	)%		(0.12	)%		(0.17	)%		(0.56	)%		(0.41	)%
Net investment (loss), net of reimbursements or recoupments		(0.12	)%E		(0.58	)%		(0.12	)%		(0.17	)%		(0.56	)%		(0.39	)%
Portfolio turnover rate		33	%D		48	%		53	%		47	%		73	%		48	%

^A On June 20, 2016, Dreman Value Management, LLC was terminated and ceased managing assets of the Small Cap Value Fund, and was replaced by Foundry Asset Management.

^B On August 19, 2014, Opus Capital Group, LLC was terminated and ceased managing assets of the Small Cap Value Fund. On March 17, 2014, Barrow Hanley, Mewhinney & Strauss, LLC began managing additional assets of the Small Cap Value Fund. On September 19, 2014, Hillcrest Asset Management, LLC began managing assets of the Small Cap Value Fund.

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

^D Not annualized.

^E Annualized.

See accompanying notes

50

American Beacon Small Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	R6 Class
	Six Months Ended April 30, 2018			February 28, 2017A to October 31, 2017
	(unaudited)
Net asset value, beginning of period	$	29.51		$	28.03
Income from investment operations:
Net investment income		0.14			-	B
Net gains on investments (both realized and unrealized)		0.10			1.48
Total income from investment operations		0.24			1.48
Less distributions:
Dividends from net investment income		(0.16	)		-
Distributions from net realized gains		(2.49	)		-
Total distributions		(2.65	)		-
Net asset value, end of period	$	27.10		$	29.51
Total returnC		0.63	%D		5.28	%D
Ratios and supplemental data:
Net assets, end of period	$	581,711,670		$	295,802,679
Ratios to average net assets:
Expenses, before reimbursements		0.78	%E		0.80	%E
Expenses, net of reimbursementsG		0.78	%E		0.80	%E
Net investment income (loss), before expense reimbursements		0.74	%E		(0.04	)%E
Net investment income (loss), net of reimbursements		0.74	%E		(0.04	)%E
Portfolio turnover rate		33	%D		48	%F

^A Commencement of operations.

^B Amount represents less than $0.01 per share.

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

^D Not annualized.

^E Annualized.

^F Portfolio turnover rate is for the period from February 28, 2017 through October 31, 2017 and is not annualized.

^G Expense ratios may exceed stated expense caps in Note 2 due to security lending expenses, which are not reimbursable under the agreement with the Manager.

See accompanying notes

51

Delivery of Documents

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

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

www.americanbeaconfunds.com

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

To obtain more information about the Fund:

By E-mail:	On the Internet:
american_beacon.funds@ambeacon.com	Visit our website at www.americanbeaconfunds.com
By Telephone: Call (800) 658-5811	By Mail: American Beacon Funds P.O. Box 219643 Kansas City, MO 64121-9643
Availability of Quarterly Portfolio Schedules	Availability of Proxy Voting Policy and Records
In addition to the Schedule of Investments provided in each semi-annual and annual report, the Fund files a complete schedule of its portfolio holdings with the Securities and Exchange Commission (“SEC”) on Form N-Q as of the first and third fiscal quarters. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-1520. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling (800)-SEC-0330. A complete schedule of the Fund’s portfolio holdings is also available at www.americanbeaconfunds.com approximately twenty days after the end of each month.	A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Fund’s Statement of Additional Information, is available free of charge on the Fund’s website www.americanbeaconfunds.com and by calling 1-800-967-9009 or by accessing the SEC’s website at www.sec.gov. The Fund’s proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Fund’s Forms N-PX are available on the SEC’s website at www.sec.gov. The Fund’s proxy voting record may also be obtained by calling 1-800-967-9009.

Fund Service Providers:

CUSTODIAN State Street Bank and Trust Boston, Massachusetts TRANSFER AGENT DST Asset Manager Solutions Kansas City, Missouri INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Dallas, Texas DISTRIBUTOR Resolute Investment Distributors, Inc. Irving, Texas

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

American Beacon Funds and American Beacon Small Cap Value Fund are service marks of American Beacon Advisors, Inc.

SAR 04/18

About American Beacon Advisors

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

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

BALANCED FUND RISKS

The use of fixed-income securities entails interest rate and credit risks. 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.

MID-CAP VALUE FUND RISKS

Investing in medium-capitalization stocks may involve greater volatility and lower liquidity than larger company stocks. Investing in value stocks may limit downside risk over time; however, the Fund may produce more modest gains than riskier stock funds as a trade-off for this potentially lower risk. Investing in foreign securities may involve heightened risk due to currency fluctuations and economic and political risks. 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 April 30, 2018

Contents

President’s Message	1
Performance Overviews	2
Expense Examples	7
Schedules of Investments:
American Beacon Balanced Fund	9
American Beacon Mid-Cap Value Fund	24
Financial Statements	30
Notes to Financial Statements	34
Financial Highlights:
American Beacon Balanced Fund	60
American Beacon Mid-Cap Value Fund	66

  Additional Fund Information Back Cover

President’s Message

Dear Shareholders,   Since 1986, American Beacon has endeavored to provide investors with a disciplined approach to realizing long-term investment goals: Institutional wisdom + earned alpha = enduring value.   u  We believe institutional wisdom comes from having more than 30 years of experience as manager of one of the country’s largest pension plans. As a fiduciary, we have built an investment due-diligence and oversight infrastructure, which we leverage across all our investment products. When selecting our investment managers, we focus on their people, processes and performance. We perform due-diligence reviews with each investment manager on a quarterly basis.   u  We believe earned alpha – that is, the returns of an actively managed fund beyond a benchmark – comes from employing and engaging

investment managers we believe are best-in-class and who have defined, repeatable and proven processes. Our experience has shown us that, while it’s important to be mindful of short-term considerations, having a long-term focus helps manage expectations, mitigate risks and realize goals. Thus, we seek relationships with leading investment managers who display a willingness to undertake time-intensive research strategies. The resulting investment portfolios are differentiated from their peers and allow incremental changes to help address periods of market volatility and economic uncertainty.

u We believe enduring value comes from “putting a portfolio in place and sticking with the plan.” Our mutual funds provide you with access to institutional-quality, research-intensive investment managers with diverse processes and styles. In the long run, having such access and spending time in the market – rather than trying to time the market – may better position you to reach your long-term investment goals.

The markets and U.S. economy were robust during calendar year 2017. However, during periods of market volatility and economic uncertainty – such as what we’ve seen thus far in 2018 – investing for the long term requires conviction. It isn’t about identifying and anticipating the next big market move. It’s about identifying the right investment products for riding out those moves. It’s about developing an approach based on long-term participation, while seeking some measure of protection against ongoing volatility.

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. Many of the sub-advisors to our mutual funds pursue upside capture and/or downside protection using proprietary strategies. 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 high quality and lower risk.

At American Beacon, our approach is more than a concept. It’s the cornerstone of our culture. And we strive to apply it at every turn as we seek to provide a well-diversified line of investment products for your portfolio.

Thank you for your continued interest in 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,

Gene L. Needles, Jr.

President

American Beacon Funds

1

American Beacon Balanced Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

The Investor Class of the American Beacon Balanced Fund (the “Fund”) returned 1.59% for the six months ended April 30, 2018, outperforming the 60% Russell 1000^® Value Index/40% Bloomberg Barclays U.S. Aggregate Bond Index (Balanced Composite Index) return of 0.47% for the same period.

Total Returns for the Period ended April 30, 2018
	Ticker	6 Months*			1 Year			3 Years			5 Years			10 Years
Institutional Class (1,7)	AADBX		1.79	%		7.87	%		5.40	%		7.65	%		6.71	%
Y Class (1,2,7)	ACBYX		1.74	%		7.84	%		5.35	%		7.60	%		6.64	%
Investor Class (1,7)	AABPX		1.59	%		7.59	%		5.04	%		7.30	%		6.37	%
Advisor Class (1,7)	ABLSX		1.54	%		7.43	%		4.86	%		7.12	%		6.19	%
A without Sales Charge (1,3,7)	ABFAX		1.71	%		7.61	%		5.01	%		7.23	%		6.29	%
A with Sales Charge (1,3,7)	ABFAX		(4.11	)%		1.42	%		2.95	%		5.97	%		5.67	%
C without Sales Charge (1,4,7)	ABCCX		1.32	%		6.80	%		4.20	%		6.42	%		5.67	%
C with Sales Charge (1,4,7)	ABCCX		0.32	%		5.80	%		4.20	%		6.42	%		5.67	%
Balanced Composite Index (5)			0.47	%		4.40	%		5.13	%		6.96	%		6.13	%
Russell 1000® Value Index (6)			1.94	%		7.50	%		7.66	%		10.52	%		7.30	%
Bloomberg Barclays U.S. Aggregate Bond Index (6)			(1.87	)%		(0.32	)%		1.07	%		1.47	%		3.57	%

* Not Annualized.

1. Performance shown is historical and is not indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is calculated based on the published end of day net asset values as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please 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.

2. Fund performance for the ten-year period represents the total returns achieved by the Institutional Class from 4/30/08 up to 3/1/10, the inception date of the Y Class, and the returns of the Y Class since its inception. Expenses of the Y Class are higher than those of the Institutional Class. Therefore, total returns shown may be higher than they would have been had the Y Class been in existence since 4/30/08. A portion of the fees charged to the Y Class of the Fund was waived in 2011, partially recovered in 2013 and fully recovered in 2014. Performance prior to waiving fees was lower than the actual returns shown in 2011.

3. Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/08 up to 5/17/10, the inception date of the A Class, and the returns of the A Class since its inception. Expenses of the A Class are higher than those of the Investor Class. Therefore, total returns shown may be higher than they would have been had the A Class been in existence since 4/30/08. A portion of the fees charged to the A Class of the Fund was waived in 2011 and 2012, partially recovered in 2013 and fully recovered in 2014. Performance prior to waiving fees was lower than the actual returns shown in 2011 and 2012. A Class has a maximum sales charge of 5.75%.

4. Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/08 up to 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the C Class are higher than those of the Investor Class. Therefore, total returns shown may be higher than they would have been had the C Class been in existence since 4/30/08. A portion of the fees charged to the C Class of the Fund was waived from 2010 through 2012, partially recovered in 2013 and fully recovered in 2014. Performance prior to waiving fees was lower than the actual returns shown from 2010 through 2012. The maximum contingent deferred sales charge for C Class is 1% for shares redeemed within one year of the date of purchase.

5. 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 Barclays U.S. Aggregate Bond Index have been combined in a 60% / 40% proportion.

6. 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 values. Russell 1000 Value Index and Russell 1000 Index are registered trademarks of Frank Russell Company. Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data, and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Bloomberg Barclays U.S. Aggregate Bond Index is a market value weighted index of government, corporate, mortgage-backed and asset-backed fixed-rate debt securities of all maturities. One cannot directly invest in an index.

7. The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, A and C Class shares were 0.60%, 0.69%, 0.90%, 1.09%, 1.00% and 1.74%, 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.

2

American Beacon Balanced Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

During the six-month period, the Fund’s assets on average were invested 67% in equities (including equitized cash) and 33% in fixed-income securities, ending the period with approximately the same allocation.

The equity portion of the Fund (excluding equitized cash) returned 3.7% for the period, outperforming the Russell 1000 Value Index (the “Index”) return of 1.9%. The equity portion of the Fund outperformed the Index as both stock selection and sector allocation added value relative to the Index.

Stock selections in the Energy, Information Technology and Telecommunications sectors contributed most of the outperformance during the six-month period. In the Energy sector, ConocoPhillips – up 28.9% was the largest contributor, followed closely by BP PLC Sponsored ADR – up 12.9%. In the Information Technology sector, Hewlett Packard Enterprise – up 24.7% was the largest contributor, followed by Microsoft Corp. – up 13.7%. In the Telecommunication Services sector, the Fund’s position in Vodafone Group PLC, Sponsored ADR – up 3.8% led to the outperformance. The aforementioned positive sector’s positions outweighed negative performance from investments in American International Group – down 12.3% and Citigroup, Inc. – down 6.1% within the Financials sector.

The Fund’s overweight to Energy – up 10.6% – the best performing sector in the Index – and underweight to Utilities, Real Estate and Consumer Staples – down 4.2%, 3.7% and 7.1%, respectively helped performance the most through sector allocation. On the other hand, being overweight in Industrials – down 4.5% weighed on the Fund’s relative value.

The fixed-income portion of the Fund returned -1.0% for the six-month period, outperforming the Bloomberg Barclays U.S. Aggregate Bond Index (the “Barclays Index”) return of -1.9%. The Fund’s fixed-income excess performance relative to the Barclays Index was due solely to good security selection. The Fund’s selections within U.S. Treasuries – down 0.1% added relative value. Good selections in the Manufacturing and Finance sectors within Corporates also added to the Fund. From a duration perspective, the portfolio was helped most by overweighting the 0 to 1 year range, as well as underweighting the 10 to 30 year range.

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

3

American Beacon Balanced Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

Top Ten Holdings (% Net Assets)
U.S. Treasury Notes/Bonds, 1.604%, Due 7/31/2018		4.1
Citigroup, Inc.		2.4
Bank of America Corp.		2.1
JPMorgan Chase & Co.		1.9
BP PLC, Sponsored ADR		1.8
American International Group, Inc.		1.7
ConocoPhillips		1.6
Microsoft Corp.		1.5
Wells Fargo & Co.		1.5
General Motors Co.		1.3
Total Fund Holdings	499
Sector Allocation (% Equities)
Financials		26.5
Energy		18.0
Consumer Discretionary		13.2
Information Technology		10.7
Health Care		10.3
Industrials		9.5
Consumer Staples		4.7
Materials		3.9
Telecommunication Services		1.9
Utilities		1.3
Sector Allocation (% Fixed Income)
U.S. Treasury Obligations		41.5
Financial		14.9
U.S. Agency Mortgage-Backed Obligations		14.2
Consumer, Cyclical		5.9
Communications		4.4
Consumer, Non-Cyclical		3.2
Industrial		3.0
Technology		2.7
Utilities		2.7
Asset-Backed Obligations		2.3
Commercial Mortgage-Backed Obligations		2.0
Energy		1.8
Basic Materials		0.9
Foreign Sovereign Obligations		0.5

4

American Beacon Mid-Cap Value Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

The Investor Class of the American Beacon Mid-Cap Value Fund (the “Fund”) returned -0.60% for the six months ended April 30, 2018. The Fund underperformed the Russell Midcap^® Value Index (the “Index”) return of 2.55% for the same period.

Total Returns for the Period ended April 30, 2018
	Ticker	6 Months*			1 Year			3 Years			5 Years			10 Years
Institutional Class (1,3,10)	AACIX		(0.47	)%		6.83	%		7.28	%		10.81	%		9.93	%
Y Class (1,4,10)	ACMYX		(0.49	)%		6.75	%		7.20	%		10.73	%		9.87	%
Investor Class (1,2,10)	AMPAX		(0.60	)%		6.63	%		7.04	%		10.57	%		9.73	%
Advisor Class (1,5,10)	AMCSX		(0.72	)%		6.29	%		6.72	%		10.23	%		9.43	%
A without Sales Charge (1,6,10)	ABMAX		(0.71	)%		6.43	%		6.85	%		10.35	%		9.46	%
A with Sales Charge (1,6,10)	ABMAX		(6.44	)%		0.30	%		4.76	%		9.06	%		8.81	%
C without Sales Charge (1,7,10)	AMCCX		(0.97	)%		5.65	%		6.06	%		9.52	%		8.85	%
C with Sales Charge (1,7,10)	AMCCX		(1.97	)%		4.65	%		6.06	%		9.52	%		8.85	%
R6 Class (1,8,10)	AMDRX		(0.47	)%		6.83	%		7.28	%		10.81	%		9.93	%
Russell Midcap® Value Index (9)			2.55	%		6.83	%		7.81	%		10.97	%		9.22	%

* Not Annualized.

1. Performance shown is historical and is not indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is calculated based on the published end of day net asset values as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please 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.

2. A portion of the fees charged to the Investor Class of the Fund was waived from 2006 through 2013 and fully recovered in 2014. Performance prior to waiving fees was lower than actual returns shown from 2008 through 2013.

3. A portion of the fees charged to the Institutional Class of the Fund was waived from 2007 through 2013 and fully recovered in 2014. Performance prior to waiving fees was lower than actual returns shown from 2008 through 2013.

4. Fund performance for the ten-year period represents the total returns achieved by the Institutional Class from 4/30/08 up to 3/1/10, the inception date of the Y Class and the returns of the Y Class since its inception. Expenses of the Institutional Class are lower than those of the Y Class. As a result, total returns shown may be higher than they would have been had the Y Class been in existence since 4/30/08. A portion of the fees charged to the Y Class of the Fund was waived from 2010 through 2013. Performance prior to waiving fees was lower than the actual returns shown from 2010 through 2013.

5. A portion of the fees charged to the Advisor Class of the Fund was waived from 2007 through 2013 and fully recovered in 2014. Performance prior to waiving fees was lower than the actual returns shown from 2008 through 2013.

6. Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/08 to 5/17/10, the inception date of the A Class, and the returns of the A Class since its inception. Expenses of the Investor Class are lower than those of the A Class. As a result, total returns shown may be higher than they would have been had the A Class been in existence since 4/30/08. A portion of the fees charged to the A Class of the Fund was waived from 2010 through 2012 and fully recovered in 2013. Performance prior to waiving fees was lower than the actual returns shown from 2010 through 2012. A Class shares have a maximum sales charge of 5.75%.

7. Fund performance for the ten-year period represents the total returns achieved by the Investor Class from 4/30/08 to 9/1/10, the inception date of the C Class, and the returns of the C Class since its inception. Expenses of the Investor Class are lower than those of the C Class. As a result, total returns shown may be higher than they would have been had the C Class been in existence since 4/30/08. A portion of the fees charged to the C Class of the Fund was waived from 2010 through 2013 and fully recovered in 2014. Performance prior to waiving fees was lower than the actual returns shown from 2010 through 2013. The maximum contingent deferred sales charge for C Class is 1.00% for shares redeemed within one year of the date of purchase.

8. Fund performance for the six-month, one-year, three-year, five-year and ten-year periods represents the returns achieved by the Institutional Class from 4/30/08 through 2/28/18, the inception date of the R6 Class, and the returns of the R6 Class since its inception. Expenses of the R6 Class are lower than those of the Institutional Class. As a result, total returns shown may be lower than they would have been had the R6 Class been in existence since 4/30/08. A portion of fees charged to the R6 Class of the Fund has been waived since 2/28/2018. Performance prior to waiving fees was lower than actual returns shown.

5

American Beacon Mid-Cap Value Fund^SM

Performance Overview

April 30, 2018 (Unaudited)

9. The Russell Midcap Value Index is an unmanaged index of those stocks in the Russell Midcap Index with lower price-to-book ratios and lower forecasted growth values. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index. Russell Midcap Value Index, Russell Midcap Index and Russell 1000 Index are registered trademarks of Frank Russell Company. Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data, and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. One cannot directly invest in an index.

10. The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the Institutional, Y, Investor, Advisor, A, C and R6 Class shares were 0.90%, 0.98%, 1.10%, 1.41%, 1.28%, 2.05% and 0.89%, respectively. The expense ratios above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

The Fund underperformed the Index due to stock selection. Sector allocation added relative value for the period.

The Fund’s performance related to security selection was mostly attributed to investments in the Information Technology, Energy and Industrials sectors. Holdings in the Information Technology sector detracting from performance included Micro Focus International – down 55.8% and Microchip Technology – down 11.9%. In the Energy sector, EQT Corp. – down 19.4% was the largest detractor. Not owning Marathon Petroleum, which was up 27.1% in the Index, also detracted relative value. Within the Industrials sector, the largest detractors were Jeld Wen Holdings, Inc. – down 25.0%, Ryder System – down 15.6% and Owens Corning – down 21.8%.

The aforementioned performance was slightly offset by the Fund’s investments in the Financials sector. Voya Financial was up 32.1% and Validus Holdings was up 40.2%, which contributed to performance.

From a sector allocation perspective, the Fund’s significant underweight positions in the Real Estate and Utilities sectors added value relative to the Index. An overweight in Information Technology, the second best performing sector for the Index, also contributed to performance. In contrast, the Fund’s overweight to Industrials detracted value for the period.

The sub-advisors’ philosophy of investing in undervalued companies that exhibit improving profitability and earnings growth potential should allow the Fund to benefit in the longer term.

Top Ten Holdings (% Net Assets)
Murphy Oil Corp.		2.1
Pinnacle West Capital Corp.		2.0
Fifth Third Bancorp		2.0
Cardinal Health, Inc.		2.0
KeyCorp		1.9
Willis Towers Watson PLC		1.8
Dover Corp.		1.7
Axis Capital Holdings Ltd.		1.7
FNF Group		1.4
Avnet, Inc.		1.4
Total Fund Holdings	116
Sector Allocation (% Equities)
Financials		25.2
Industrials		16.4
Consumer Discretionary		14.3
Information Technology		9.4
Energy		9.4
Health Care		8.1
Utilities		6.3
Real Estate		4.9
Materials		4.5
Consumer Staples		1.5

6

American Beacon Funds^SM

Expense Examples

April 30, 2018 (Unaudited)

Fund Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees, if applicable, and (2) ongoing costs, including management fees, distribution (12b-1) fees, sub-transfer agent fees, and other Fund expenses. The Examples are intended to help you understand the ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Examples are based on an investment of $1,000 invested at the beginning of the period in each Class and held for the entire period from November 1, 2017 through April 30, 2018.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

7

American Beacon Funds^SM

Expense Examples

April 30, 2018 (Unaudited)

American Beacon Balanced Fund
	Beginning Account Value 11/1/2017		Ending Account Value 4/30/2018		Expenses Paid During Period 11/1/2017-4/30/2018*
Institutional Class
Actual		$1,000.00		$1,016.60		$3.20
Hypothetical**		$1,000.00		$1,021.60		$3.21
Y Class
Actual		$1,000.00		$1,016.80		$3.55
Hypothetical**		$1,000.00		$1,021.30		$3.56
Investor Class
Actual		$1,000.00		$1,015.90		$4.60
Hypothetical**		$1,000.00		$1,020.20		$4.61
Advisor Class
Actual		$1,000.00		$1,014.70		$5.64
Hypothetical**		$1,000.00		$1,019.20		$5.66
A Class
Actual		$1,000.00		$1,017.10		$3.85
Hypothetical**		$1,000.00		$1,021.00		$3.86
C Class
Actual		$1,000.00		$1,013.20		$7.29
Hypothetical**		$1,000.00		$1,017.60		$7.30

* Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.64%, 0.71%, 0.92%, 1.13%, 0.77%, and 1.46% for the Institutional, 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 (181) by days in the year (365) to reflect the half-year period.

** 5% return before expenses.

American Beacon Mid-Cap Value Fund
	Beginning Account Value 11/1/2017		Ending Account Value 4/30/2018		Expenses Paid During Period 11/1/2017-4/30/2018*
Institutional Class
Actual		$1,000.00		$995.30		$4.16
Hypothetical**		$1,000.00		$1,020.60		$4.21
Y Class
Actual		$1,000.00		$995.10		$4.55
Hypothetical**		$1,000.00		$1,020.20		$4.61
Investor Class
Actual		$1,000.00		$994.00		$5.24
Hypothetical**		$1,000.00		$1,019.50		$5.31
Advisor Class
Actual		$1,000.00		$992.80		$6.97
Hypothetical**		$1,000.00		$1,017.80		$7.05
A Class
Actual		$1,000.00		$993.50		$6.03
Hypothetical**		$1,000.00		$1,018.70		$6.11
C Class
Actual		$1,000.00		$990.90		$9.13
Hypothetical**		$1,000.00		$1,015.60		$9.25
R6 Class
Actual		$1,000.00		$995.30		$1.47
Hypothetical**		$1,000.00		$1,020.40		$4.41

* Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.84%, 0.92%, 1.06%, 1.41%, 1.22%, 1.85%, and 0.88% for the Institutional, Y, Investor, Advisor, A, C and R6 Classes, respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (181) by days in the year (365) to reflect the half-year period.

** 5% return before expenses.

8

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 64.53%
Consumer Discretionary - 8.49%
Auto Components - 1.30%
Adient PLC		6,632		$	406,475
Goodyear Tire & Rubber Co.		67,608			1,697,637
Magna International, Inc.		35,827			2,113,793
					4,217,905
Automobiles - 1.48%
General Motors Co.		115,932			4,259,342
Harley-Davidson, Inc.		12,741			524,037
					4,783,379
Hotels, Restaurants & Leisure - 0.47%
Carnival Corp.		6,242			393,620
Norwegian Cruise Line Holdings Ltd.A		20,865			1,115,652
					1,509,272
Household Durables - 0.59%
DR Horton, Inc.		27,311			1,205,508
Tupperware Brands Corp.		15,900			708,504
					1,914,012
Media - 2.59%
CBS Corp., Class B, NVDR		17,252			848,798
Cinemark Holdings, Inc.		7,300			285,941
Comcast Corp., Class A		126,553			3,972,499
Discovery, Inc., Class AA B		35,300			834,845
Discovery, Inc., Class CA		52,699			1,170,972
Interpublic Group of Cos, Inc.		15,500			365,645
Omnicom Group, Inc.		4,186			308,341
Walt Disney Co.		6,000			601,980
					8,389,021
Multiline Retail - 0.69%
Dollar General Corp.		23,151			2,234,766
Specialty Retail - 1.26%
Advance Auto Parts, Inc.		9,300			1,064,385
Bed Bath & Beyond, Inc.		16,824			293,747
Dick’s Sporting Goods, Inc.		20,600			681,654
Lowe’s Cos, Inc.		24,724			2,037,999
					4,077,785
Textiles, Apparel & Luxury Goods - 0.11%
Hanesbrands, Inc.		19,500			360,165
Total Consumer Discretionary					27,486,305
Consumer Staples - 3.07%
Beverages - 0.58%
Molson Coors Brewing Co., Class B		14,800			1,054,352
PepsiCo, Inc.		8,300			837,802
					1,892,154
Food Products - 0.31%
Kellogg Co.		5,392			317,589
Mondelez International, Inc., Class A		17,200			679,400
					996,989

See accompanying notes

9

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 64.53% (continued)
Consumer Staples - 3.07% (continued)
Health Care Providers & Services - 0.71%
CVS Health Corp.		32,715		$	2,284,488
Personal Products - 0.36%
Unilever PLC, ADR		20,700			1,158,579
Tobacco - 1.11%
Altria Group, Inc.		22,796			1,279,084
Imperial Brands PLC, Sponsored ADR		28,646			1,041,855
Philip Morris International, Inc.		15,601			1,279,282
					3,600,221
Total Consumer Staples					9,932,431
Energy - 11.61%
Energy Equipment & Services - 1.54%
Halliburton Co.		21,900			1,160,481
Helmerich & Payne, Inc.		11,200			778,960
National Oilwell Varco, Inc.		24,300			939,681
Oceaneering International, Inc.		23,155			491,812
Schlumberger Ltd.		23,600			1,618,016
					4,988,950
Oil, Gas & Consumable Fuels - 10.07%
Anadarko Petroleum Corp.		19,597			1,319,270
Andeavor		7,600			1,051,232
Apache Corp.		57,614			2,359,293
BP PLC, Sponsored ADR		129,355			5,767,940
Canadian Natural Resources Ltd.		95,265			3,437,161
Chevron Corp.		16,320			2,041,795
ConocoPhillips		76,756			5,027,518
Devon Energy Corp.		47,207			1,715,030
Hess Corp.		32,132			1,831,203
Kinder Morgan, Inc.		55,200			873,264
Kosmos Energy Ltd.A		43,969			309,542
Marathon Oil Corp.		110,431			2,015,366
Murphy Oil Corp.		32,875			989,866
Phillips 66		24,295			2,704,276
Royal Dutch Shell PLC, Class A, Sponsored ADR		16,435			1,148,807
					32,591,563
Total Energy					37,580,513
Financials - 17.09%
Banks - 8.93%
Bank of America Corp.		231,102			6,914,572
BNP Paribas S.A., ADR		22,600			870,100
CIT Group, Inc.		6,650			352,117
Citigroup, Inc.		115,232			7,866,889
Citizens Financial Group, Inc.		20,768			861,664
JPMorgan Chase & Co.		56,801			6,178,813
PNC Financial Services Group, Inc.		8,076			1,175,946
Wells Fargo & Co.		90,509			4,702,848
					28,922,949

See accompanying notes

10

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 64.53% (continued)
Financials - 17.09% (continued)
Capital Markets - 2.19%
Bank of New York Mellon Corp.		6,715		$	366,035
Blackstone Group LP, MLP		61,330			1,898,163
Goldman Sachs Group, Inc.		3,797			904,939
KKR & Co. LP		137,984			2,889,385
Morgan Stanley		6,537			337,440
State Street Corp.		7,006			699,059
					7,095,021
Consumer Finance - 2.35%
Ally Financial, Inc.		19,900			519,390
Capital One Financial Corp.		16,929			1,534,106
Discover Financial Services		15,500			1,104,375
Navient Corp.		41,739			553,459
OneMain Holdings, Inc.A		23,965			739,320
Santander Consumer USA Holdings, Inc.		57,879			1,067,868
SLM Corp.A		125,282			1,438,237
Synchrony Financial		19,506			647,014
					7,603,769
Diversified Financial Services - 0.61%
Berkshire Hathaway, Inc., Class B, Class BA		10,242			1,984,183
Insurance - 2.86%
American International Group, Inc.		99,147			5,552,232
Travelers Companies, Inc.		7,957			1,047,141
XL Group Ltd.		47,800			2,657,202
					9,256,575
Thrifts & Mortgage Finance - 0.15%
Radian Group, Inc.		33,061			472,772
Total Financials					55,335,269
Health Care - 6.62%
Biotechnology - 0.99%
AbbVie, Inc.		4,285			413,717
Biogen, Inc.A		2,072			566,899
Celgene Corp.A		6,286			547,511
Gilead Sciences, Inc.		9,720			702,075
Portola Pharmaceuticals, Inc.A		11,300			408,269
Shire PLC, ADRB		3,600			573,948
					3,212,419
Health Care Equipment & Supplies - 1.57%
Koninklijke Philips N.V.		29,293			1,236,751
Medtronic PLC		37,653			3,017,135
Zimmer Biomet Holdings, Inc.		7,232			832,909
					5,086,795
Health Care Providers & Services - 0.99%
Anthem, Inc.		13,580			3,204,744
Pharmaceuticals - 3.07%
GlaxoSmithKline PLC, Sponsored ADR		30,643			1,229,091
Horizon Pharma PLCA		39,612			524,463
Jazz Pharmaceuticals PLCA		3,293			500,668
Johnson & Johnson		9,213			1,165,352

See accompanying notes

11

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 64.53% (continued)
Health Care - 6.62% (continued)
Pharmaceuticals - 3.07% (continued)
Mallinckrodt PLCA		17,712		$	230,256
Merck & Co., Inc.		30,688			1,806,603
Mylan N.V.A		20,644			800,161
Pfizer, Inc.		51,896			1,899,913
Sanofi, ADR		45,273			1,780,134
					9,936,641
Total Health Care					21,440,599
Industrials - 6.14%
Aerospace & Defense - 1.00%
Embraer S.A., Sponsored ADR		10,824			272,981
General Dynamics Corp.		3,278			659,894
Raytheon Co.		7,933			1,625,789
United Technologies Corp.		5,619			675,123
					3,233,787
Airlines - 1.20%
American Airlines Group, Inc.		26,561			1,140,264
Delta Air Lines, Inc.		28,045			1,464,510
United Continental Holdings, Inc.A		19,100			1,290,014
					3,894,788
Building Products - 0.91%
Johnson Controls International PLC		87,229			2,954,446
Construction & Engineering - 0.20%
AECOMA		18,481			636,486
Electrical Equipment - 0.16%
Eaton Corp. PLC		6,983			523,934
Industrial Conglomerates - 1.10%
General Electric Co.		160,884			2,263,638
Honeywell International, Inc.		9,002			1,302,409
					3,566,047
Machinery - 0.93%
CNH Industrial N.V.		115,580			1,415,855
Cummins, Inc.		7,972			1,274,404
PACCAR, Inc.		5,339			339,934
					3,030,193
Trading Companies & Distributors - 0.44%
AerCap Holdings N.V.A		27,191			1,417,467
Transportation Infrastructure - 0.20%
Macquarie Infrastructure Corp.		16,900			640,510
Total Industrials					19,897,658
Information Technology - 6.94%
Communications Equipment - 1.19%
Cisco Systems, Inc.		44,871			1,987,337
Telefonaktiebolaget LM Ericsson, Sponsored ADR		248,620			1,877,081
					3,864,418

See accompanying notes

12

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 64.53% (continued)
Information Technology - 6.94% (continued)
Electronic Equipment, Instruments & Components - 0.58%
Corning, Inc.		56,895		$	1,537,303
TE Connectivity Ltd.		3,658			335,621
					1,872,924
IT Services - 0.48%
First Data Corp., Class AA		66,000			1,194,600
Teradata Corp.A		9,018			369,017
					1,563,617
Semiconductors & Semiconductor Equipment - 0.95%
Micron Technology, Inc.A		36,335			1,670,683
QUALCOMM, Inc.		27,484			1,401,959
					3,072,642
Software - 2.79%
Microsoft Corp.		51,033			4,772,606
Oracle Corp.		93,182			4,255,622
					9,028,228
Technology Hardware, Storage & Peripherals - 0.95%
Hewlett Packard Enterprise Co.		179,808			3,065,726
Total Information Technology					22,467,555
Materials - 2.49%
Chemicals - 1.63%
Air Products & Chemicals, Inc.		13,582			2,204,223
DowDuPont, Inc.		36,890			2,332,923
Eastman Chemical Co.		7,085			723,237
					5,260,383
Containers & Packaging - 0.56%
Crown Holdings, Inc.A		19,335			963,657
International Paper Co.		16,625			857,185
					1,820,842
Metals & Mining - 0.30%
Reliance Steel & Aluminum Co.		11,087			974,769
Total Materials					8,055,994
Telecommunication Services - 1.24%
Diversified Telecommunication Services - 0.73%
AT&T, Inc.		41,173			1,346,357
Verizon Communications, Inc.		20,795			1,026,234
					2,372,591
Wireless Telecommunication Services - 0.51%
Vodafone Group PLC, Sponsored ADR		56,032			1,647,901
Total Telecommunication Services					4,020,492

See accompanying notes

13

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares			Fair Value
COMMON STOCKS - 64.53% (continued)
Utilities - 0.84%
Electric Utilities - 0.84%
Entergy Corp.			14,236		$	1,161,515
PPL Corp.			26,347			766,698
Southern Co.			17,343			799,859
						2,728,072
Total Utilities						2,728,072
Total Common Stocks (Cost $160,141,378)						208,944,888
	Principal Amount
CORPORATE OBLIGATIONS - 11.13%
Basic Materials - 0.21%
Dow Chemical Co.,
4.125%, Due 11/15/2021		$	145,000			148,192
3.500%, Due 10/1/2024			299,000			292,337
EI du Pont de Nemours & Co., 2.200%, Due 5/1/2020			70,000			69,006
Nucor Corp.,
4.125%, Due 9/15/2022			77,000			79,322
4.000%, Due 8/1/2023			80,000			81,684
						670,541
Communications - 0.93%
Amazon.com, Inc., 3.875%, Due 8/22/2037C			70,000			69,384
AT&T, Inc.,
4.450%, Due 4/1/2024			80,000			81,941
3.400%, Due 5/15/2025			169,000			160,944
4.500%, Due 5/15/2035			106,000			101,057
6.350%, Due 3/15/2040			60,000			68,201
CBS Corp., 3.375%, Due 3/1/2022			337,000			333,892
Charter Communications Operating LLC, 3.750%, Due 2/15/2028			130,000			118,600
Comcast Corp.,
3.150%, Due 3/1/2026			84,000			79,989
3.900%, Due 3/1/2038			90,000			85,202
6.550%, Due 7/1/2039			217,000			278,823
eBay, Inc., 2.150%, Due 6/5/2020			95,000			93,192
NBCUniversal Enterprise, Inc., 2.708%, Due 4/1/2021, (3-mo. USD LIBOR + 0.400%)C D			735,000			738,994
RELX Capital, Inc., 3.500%, Due 3/16/2023			55,000			54,470
Time Warner, Inc.,
4.875%, Due 3/15/2020			217,000			224,135
4.750%, Due 3/29/2021			157,000			163,217
Verizon Communications, Inc.,
4.600%, Due 4/1/2021			173,000			179,828
4.125%, Due 3/16/2027			180,000			179,973
						3,011,842
Consumer, Cyclical - 1.93%
American Honda Finance Corp.,
1.700%, Due 2/22/2019			140,000			139,049
3.875%, Due 9/21/2020C			250,000			254,807
Costco Wholesale Corp., 2.150%, Due 5/18/2021			265,000			258,938
CVS Health Corp., 2.125%, Due 6/1/2021			110,000			106,100
Daimler Finance North America LLC,
2.250%, Due 9/3/2019C			169,000			167,518
2.450%, Due 5/18/2020C			313,000			308,467
2.354%, Due 2/22/2021C E			575,000			576,100
Delphi Corp., 4.150%, Due 3/15/2024			155,000			157,126
Dollar General Corp., 4.125%, Due 5/1/2028			50,000			49,592
Dollar Tree, Inc., 3.700%, Due 5/15/2023			85,000			84,379
Ford Motor Credit Co. LLC,
3.025%, Due 6/15/2018, (3-mo. USD LIBOR + 0.900%)D			472,000			472,459
3.331%, Due 1/9/2020, (3-mo. USD LIBOR + 1.000%)D			222,000			224,224

See accompanying notes

14

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 11.13% (continued)
Consumer, Cyclical - 1.93% (continued)
Ford Motor Credit Co. LLC, (continued)
2.835%, Due 4/5/2021E		$	470,000		$	471,930
5.875%, Due 8/2/2021			200,000			212,816
3.810%, Due 1/9/2024			95,000			92,579
General Motors Financial Co., Inc.,
3.272%, Due 4/13/2020, (3-mo. USD LIBOR + 0.930%)D			805,000			812,416
3.150%, Due 6/30/2022			90,000			87,560
Home Depot, Inc.,
2.700%, Due 4/1/2023			72,000			70,200
3.350%, Due 9/15/2025			65,000			64,125
McDonald’s Corp., 3.700%, Due 1/30/2026			183,000			182,654
Nissan Motor Acceptance Corp., 2.350%, Due 3/4/2019C			289,000			288,107
PACCAR Financial Corp.,
1.300%, Due 5/10/2019			58,000			57,265
2.200%, Due 9/15/2019			92,000			91,432
Toyota Motor Credit Corp., 2.125%, Due 7/18/2019			320,000			317,854
Volkswagen Group of America Finance LLC, 2.450%, Due 11/20/2019C			313,000			309,447
Walgreens Boots Alliance, Inc., 3.800%, Due 11/18/2024			145,000			142,909
Walmart, Inc., 7.550%, Due 2/15/2030			169,000			231,948
						6,232,001
Consumer, Non-Cyclical - 0.98%
Abbott Laboratories,
2.350%, Due 11/22/2019			57,000			56,503
4.900%, Due 11/30/2046			90,000			97,387
AbbVie, Inc.,
3.200%, Due 5/14/2026			85,000			79,345
4.300%, Due 5/14/2036			87,000			84,133
Altria Group, Inc., 4.750%, Due 5/5/2021			145,000			151,418
Amgen, Inc., 4.400%, Due 5/1/2045			95,000			92,427
Anheuser-Busch InBev Finance, Inc.,
2.650%, Due 2/1/2021			170,000			168,028
3.650%, Due 2/1/2026			170,000			166,209
Anheuser-Busch InBev Worldwide, Inc., 4.375%, Due 4/15/2038			35,000			34,587
Anthem, Inc., 2.500%, Due 11/21/2020			90,000			88,490
Baxalta, Inc., 4.000%, Due 6/23/2025			67,000			65,632
Bayer US Finance LLC, 2.375%, Due 10/8/2019C			300,000			297,104
Becton Dickinson and Co., 3.125%, Due 11/8/2021			94,000			92,485
Celgene Corp., 5.250%, Due 8/15/2043			70,000			73,550
CVS Health Corp., 5.050%, Due 3/25/2048			55,000			55,874
General Mills, Inc., 2.200%, Due 10/21/2019			289,000			285,354
Genzyme Corp., 5.000%, Due 6/15/2020			39,000			40,513
Humana, Inc., 3.150%, Due 12/1/2022			145,000			142,948
Kaiser Foundation Hospitals, 4.150%, Due 5/1/2047			45,000			45,412
Kraft Heinz Foods Co., 5.000%, Due 7/15/2035			65,000			65,886
Medtronic, Inc., 3.500%, Due 3/15/2025			313,000			309,900
Molson Coors Brewing Co., 3.000%, Due 7/15/2026			135,000			123,607
Philip Morris International, Inc., 2.625%, Due 3/6/2023			85,000			81,662
Reynolds American, Inc., 5.850%, Due 8/15/2045			65,000			73,132
UnitedHealth Group, Inc.,
1.625%, Due 3/15/2019			120,000			118,984
3.950%, Due 10/15/2042			80,000			76,843
Zimmer Biomet Holdings, Inc., 3.550%, Due 4/1/2025			135,000			130,039
Zoetis, Inc., 3.000%, Due 9/12/2027			95,000			87,672
						3,185,124
Energy - 0.31%
Buckeye Partners LP, 4.875%, Due 2/1/2021			80,000			81,977
Chevron Corp., 1.790%, Due 11/16/2018			100,000			99,718
Columbia Pipeline Group, Inc., 4.500%, Due 6/1/2025			101,000			101,868
Enterprise Products Operating LLC, 6.125%, Due 10/15/2039			65,000			77,781
EOG Resources, Inc., 4.150%, Due 1/15/2026			70,000			71,547
Marathon Petroleum Corp., 3.625%, Due 9/15/2024			80,000			78,592
MPLX LP,
4.875%, Due 12/1/2024			87,000			90,189
5.200%, Due 3/1/2047			46,000			47,043

See accompanying notes

15

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 11.13% (continued)
Energy - 0.31% (continued)
Phillips 66, 4.300%, Due 4/1/2022		$	82,000		$	84,874
Phillips 66 Partners LP,
3.550%, Due 10/1/2026			53,000			50,030
3.750%, Due 3/1/2028			70,000			66,729
Spectra Energy Partners LP, 3.375%, Due 10/15/2026			63,000			58,365
Sunoco Logistics Partners Operations LP, 4.250%, Due 4/1/2024			48,000			47,230
TC PipeLines LP, 3.900%, Due 5/25/2027			55,000			52,189
						1,008,132
Financial - 4.16%
American Campus Communities Operating Partnership LP, 3.625%, Due 11/15/2027			85,000			79,190
American Express Co.,
3.400%, Due 2/27/2023			175,000			173,624
4.050%, Due 12/3/2042			110,000			107,316
American International Group, Inc., 4.875%, Due 6/1/2022			289,000			302,554
Bank of America Corp.,
3.124%, Due 1/20/2023, (3-mo. USD LIBOR + 1.160%)D			265,000			260,856
4.125%, Due 1/22/2024			193,000			197,560
6.110%, Due 1/29/2037			176,000			205,012
5.000%, Due 1/21/2044			245,000			264,886
Bank of New York Mellon Corp.,
2.200%, Due 3/4/2019			176,000			175,628
3.250%, Due 5/16/2027			175,000			167,557
BB&T Corp., 2.750%, Due 4/1/2022			205,000			200,439
Boston Properties LP, 3.650%, Due 2/1/2026			175,000			168,834
Capital One Financial Corp., 2.450%, Due 4/24/2019			135,000			134,599
CBOE Global Markets, Inc., 3.650%, Due 1/12/2027			125,000			120,595
Chubb INA Holdings, Inc., 3.350%, Due 5/3/2026			70,000			68,119
Citibank NA, 2.189%, Due 2/12/2021E			510,000			510,355
Citigroup, Inc.,
3.700%, Due 1/12/2026			178,000			172,715
3.887%, Due 1/10/2028, (3-mo. USD LIBOR + 1.563%)D			175,000			170,100
5.875%, Due 1/30/2042			145,000			171,820
Crown Castle International Corp., 3.400%, Due 2/15/2021			84,000			84,069
Digital Realty Trust LP, 3.700%, Due 8/15/2027			95,000			90,261
ERP Operating LP, 3.000%, Due 4/15/2023			77,000			74,926
Goldman Sachs Group, Inc.,
5.750%, Due 1/24/2022			385,000			414,321
2.556%, Due 2/23/2023E			1,040,000			1,040,437
2.908%, Due 6/5/2023, (3-mo. USD LIBOR + 1.053%)D			225,000			217,556
3.500%, Due 1/23/2025			95,000			91,809
3.272%, Due 9/29/2025E			85,000			80,840
HCP, Inc., 2.625%, Due 2/1/2020			85,000			83,975
Intercontinental Exchange, Inc., 2.750%, Due 12/1/2020			92,000			91,133
JPMorgan Chase & Co.,
3.625%, Due 5/13/2024			434,000			430,893
3.782%, Due 2/1/2028, (3-mo. USD LIBOR + 1.337%)D			160,000			155,284
3.882%, Due 7/24/2038, (3-mo. USD LIBOR + 1.360%)D			140,000			130,346
5.500%, Due 10/15/2040			313,000			360,934
JPMorgan Chase Bank NA, 2.673%, Due 9/21/2018, (3-mo. USD LIBOR + 0.450%)D			217,000			217,295
KeyCorp, 5.100%, Due 3/24/2021			60,000			62,961
Liberty Mutual Group, Inc., 4.250%, Due 6/15/2023C			113,000			114,600
Mastercard, Inc., 3.375%, Due 4/1/2024			120,000			120,190
MetLife, Inc.,
6.375%, Due 6/15/2034			169,000			208,299
4.721%, Due 12/15/2044			193,000			200,981
Metropolitan Life Global Funding I,
2.398%, Due 9/19/2019C E			355,000			355,530
2.561%, Due 1/8/2021C E			480,000			480,133
Morgan Stanley,
7.300%, Due 5/13/2019			361,000			377,328
5.625%, Due 9/23/2019			169,000			174,964
3.700%, Due 10/23/2024			235,000			231,982
3.591%, Due 7/22/2028, (3-mo. USD LIBOR + 1.340%)D			145,000			137,853

See accompanying notes

16

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 11.13% (continued)
Financial - 4.16% (continued)
National Rural Utilities Cooperative Finance Corp.,
1.650%, Due 2/8/2019		$	92,000		$	91,252
2.950%, Due 2/7/2024			90,000			86,974
PNC Financial Services Group, Inc., 3.300%, Due 3/8/2022			160,000			159,374
Prudential Financial, Inc., 4.600%, Due 5/15/2044			313,000			323,288
Public Storage, 2.370%, Due 9/15/2022			125,000			119,727
Raymond James Financial, Inc., 3.625%, Due 9/15/2026			125,000			121,026
Simon Property Group LP,
2.200%, Due 2/1/2019			240,000			239,238
3.375%, Due 10/1/2024			313,000			304,558
State Street Corp., 3.550%, Due 8/18/2025			135,000			134,281
SunTrust Bank, 2.450%, Due 8/1/2022			140,000			134,434
Travelers Companies, Inc., 4.000%, Due 5/30/2047			90,000			87,748
US Bancorp, 1.950%, Due 11/15/2018			255,000			254,509
Ventas Realty LP, 5.700%, Due 9/30/2043			65,000			72,456
Visa, Inc.,
2.800%, Due 12/14/2022			95,000			93,371
3.150%, Due 12/14/2025			130,000			126,769
Wells Fargo & Co.,
2.150%, Due 1/30/2020, Series N			70,000			69,077
2.550%, Due 12/7/2020			110,000			108,387
3.387%, Due 7/26/2021, (3-mo. USD LIBOR + 1.025%)D			1,087,000			1,107,230
3.000%, Due 10/23/2026			65,000			59,812
4.750%, Due 12/7/2046			90,000			88,802
						13,462,972
Industrial - 0.85%
BAE Systems Holdings, Inc., 3.800%, Due 10/7/2024C			313,000			312,184
Burlington Northern Santa Fe LLC,
3.650%, Due 9/1/2025			65,000			65,373
5.750%, Due 5/1/2040			202,000			243,630
Caterpillar Financial Services Corp., 1.350%, Due 5/18/2019			125,000			123,304
CSX Corp., 5.500%, Due 4/15/2041			157,000			176,850
Eaton Corp.,
5.600%, Due 5/15/2018			77,000			77,085
2.750%, Due 11/2/2022			75,000			72,654
General Electric Co.,
5.625%, Due 5/1/2018			181,000			181,000
6.000%, Due 8/7/2019			169,000			175,426
5.500%, Due 1/8/2020			120,000			124,717
John Deere Capital Corp.,
1.950%, Due 6/22/2020			150,000			146,900
2.150%, Due 9/8/2022			90,000			85,672
Martin Marietta Materials, Inc., 4.250%, Due 12/15/2047			95,000			85,706
Northrop Grumman Corp.,
5.050%, Due 8/1/2019			72,000			73,898
3.850%, Due 4/15/2045			155,000			142,132
Stanley Black & Decker, Inc., 2.451%, Due 11/17/2018			185,000			184,834
Union Pacific Corp., 4.100%, Due 9/15/2067			90,000			83,765
United Technologies Corp.,
1.900%, Due 5/4/2020			135,000			132,443
6.125%, Due 7/15/2038			217,000			259,527
						2,747,100
Technology - 0.89%
Analog Devices, Inc., 3.900%, Due 12/15/2025			95,000			94,524
Apple, Inc., 2.850%, Due 5/11/2024			240,000			232,798
Autodesk, Inc., 3.500%, Due 6/15/2027			95,000			89,605
Broadcom Corp., 2.375%, Due 1/15/2020			41,000			40,416
Broadridge Financial Solutions, Inc., 3.400%, Due 6/27/2026			90,000			85,380
Dell International LLC / EMC Corp., 4.420%, Due 6/15/2021C			210,000			213,927
Hewlett Packard Enterprise Co., 6.350%, Due 10/15/2045			1,178,000			1,210,372
HP, Inc., 4.050%, Due 9/15/2022			145,000			147,574
Intel Corp., 3.300%, Due 10/1/2021			116,000			117,137

See accompanying notes

17

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 11.13% (continued)
Technology - 0.89% (continued)
Microsoft Corp., 4.450%, Due 11/3/2045		$	135,000		$	144,342
Oracle Corp.,
2.500%, Due 5/15/2022			115,000			112,249
4.300%, Due 7/8/2034			157,000			163,276
QUALCOMM, Inc.,
2.100%, Due 5/20/2020			85,000			84,696
3.000%, Due 5/20/2022			65,000			63,368
Xilinx, Inc., 2.950%, Due 6/1/2024			90,000			85,508
						2,885,172
Utilities - 0.87%
Berkshire Hathaway Energy Co., 6.125%, Due 4/1/2036			287,000			359,714
Consolidated Edison Co. of New York, Inc.,
5.500%, Due 12/1/2039, Series 09-C			169,000			200,281
4.625%, Due 12/1/2054			55,000			58,607
Delmarva Power & Light Co., 3.500%, Due 11/15/2023			106,000			105,812
Dominion Energy, Inc., 2.579%, Due 7/1/2020			90,000			88,603
Duke Energy Corp., 3.550%, Due 9/15/2021			180,000			181,147
Duke Energy Progress LLC, 4.150%, Due 12/1/2044			125,000			127,048
Edison International, 2.950%, Due 3/15/2023			82,000			79,141
Entergy Louisiana, LLC, 4.000%, Due 3/15/2033			67,000			66,844
Florida Power & Light Co., 3.950%, Due 3/1/2048			50,000			49,760
Georgia Power Co., 1.950%, Due 12/1/2018			75,000			74,772
MidAmerican Energy Co., 3.100%, Due 5/1/2027			125,000			119,570
National Fuel Gas Co., 3.950%, Due 9/15/2027			125,000			119,552
Nevada Power Co., 2.750%, Due 4/15/2020, Series BB			50,000			49,853
NiSource, Inc.,
3.490%, Due 5/15/2027			70,000			67,080
3.950%, Due 3/30/2048			95,000			87,812
Southern Co.,
2.150%, Due 9/1/2019			92,000			91,004
2.750%, Due 6/15/2020			241,000			238,787
Southern Power Co.,
4.150%, Due 12/1/2025			84,000			84,968
4.950%, Due 12/15/2046, Series F			87,000			88,625
Southwestern Electric Power Co., 3.550%, Due 2/15/2022			289,000			290,285
Union Electric Co., 6.700%, Due 2/1/2019			96,000			98,721
WEC Energy Group, Inc., 3.550%, Due 6/15/2025			94,000			92,340
						2,820,326
Total Corporate Obligations (Cost $35,624,687)						36,023,210
FOREIGN CORPORATE OBLIGATIONS - 1.85%
Basic Materials - 0.09%
LYB International Finance II B.V., 3.500%, Due 3/2/2027			145,000			137,492
Nutrien Ltd., 4.000%, Due 12/15/2026			94,000			91,933
Rio Tinto Finance USA Ltd., 3.750%, Due 6/15/2025			65,000			65,607
						295,032
Communications - 0.53%
Alibaba Group Holding Ltd., 3.600%, Due 11/28/2024			313,000			307,803
America Movil S.A.B. de C.V., 6.375%, Due 3/1/2035			169,000			201,754
Bell Canada, Inc., 4.464%, Due 4/1/2048			45,000			44,362
Deutsche Telekom International Finance B.V., 4.875%, Due 3/6/2042C			150,000			158,933
Rogers Communications, Inc., 3.625%, Due 12/15/2025			115,000			112,088
TELUS Corp., 2.800%, Due 2/16/2027			99,000			90,366
Thomson Reuters Corp.,
4.300%, Due 11/23/2023			145,000			146,856
3.850%, Due 9/29/2024			193,000			189,254
Vodafone Group PLC, 6.150%, Due 2/27/2037			393,000			447,625
						1,699,041

See accompanying notes

18

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Principal Amount			Fair Value
FOREIGN CORPORATE OBLIGATIONS - 1.85% (continued)
Consumer, Non-Cyclical - 0.08%
Coca-Cola Femsa S.A.B. de C.V., 3.875%, Due 11/26/2023		$	65,000		$	65,602
Sanofi, 4.000%, Due 3/29/2021			105,000			107,805
Shire Acquisitions Investments Ireland DAC, 2.875%, Due 9/23/2023			105,000			99,062
						272,469
Energy - 0.27%
Canadian Natural Resources Ltd.,
3.900%, Due 2/1/2025			90,000			88,759
6.250%, Due 3/15/2038			176,000			210,499
Husky Energy, Inc., 3.950%, Due 4/15/2022			135,000			136,756
Shell International Finance B.V., 1.625%, Due 11/10/2018			185,000			184,322
TransCanada PipeLines Ltd.,
3.750%, Due 10/16/2023			145,000			145,893
6.100%, Due 6/1/2040			82,000			98,541
						864,770
Financial - 0.74%
ABN AMRO Bank N.V., 1.800%, Due 6/4/2018C			289,000			288,903
Bank of Montreal, 1.750%, Due 9/11/2019			160,000			157,744
HSBC Holdings PLC, 3.262%, Due 3/13/2023, (3-mo. USD LIBOR + 1.055%)D			178,000			175,133
Macquarie Bank Ltd., 2.662%, Due 4/4/2019C E			355,000			355,031
National Australia Bank Ltd., 2.414%, Due 5/22/2020, (3-mo. USD LIBOR + 0.510%)C D			470,000			472,119
Nordea Bank AB, 4.875%, Due 1/27/2020C			120,000			123,496
Royal Bank of Canada,
2.125%, Due 3/2/2020			175,000			172,131
3.200%, Due 4/30/2021			170,000			170,083
Toronto-Dominion Bank,
2.625%, Due 9/10/2018			185,000			185,155
2.550%, Due 1/25/2021			130,000			128,076
Trinity Acquisition PLC, 4.400%, Due 3/15/2026			87,000			87,104
Westpac Banking Corp., 2.650%, Due 1/25/2021			90,000			88,897
						2,403,872
Industrial - 0.14%
Canadian National Railway Co., 5.550%, Due 5/15/2018			169,000			169,186
Ingersoll-Rand Luxembourg Finance S.A., 2.625%, Due 5/1/2020			145,000			143,435
Johnson Controls International PLC, 5.000%, Due 3/30/2020			145,000			150,112
						462,733
Total Foreign Corporate Obligations (Cost $5,888,333)						5,997,917
FOREIGN SOVEREIGN OBLIGATIONS - 0.17%
European Investment Bank, 2.375%, Due 6/15/2022			140,000			137,168
Kreditanstalt fuer Wiederaufbau, 2.125%, Due 6/15/2022			140,000			135,787
Province of Ontario Canada, 2.500%, Due 4/27/2026			170,000			159,435
Province of Quebec Canada, 2.375%, Due 1/31/2022			125,000			121,895
Total Foreign Sovereign Obligations (Cost $574,016)						554,285
COMMERCIAL MORTGAGE-BACKED OBLIGATIONS - 0.67%
Ginnie Mae REMIC Trust,
1.147%, Due 12/16/2038, 2013-139 A			318,597			315,043
1.624%, Due 7/16/2039, 2013-78 AB			591,758			577,660
2.586%, Due 9/16/2039, 2014-31 AB			14,825			14,805
1.368%, Due 11/16/2041, 2013-125 AB			679,905			655,146
3.200%, Due 11/16/2044, 2011-92 B			39,786			39,739
GS Mortgage Securities Trust, 3.679%, Due 8/10/2043, 2010-C1 A1C			21,566			21,685
JP Morgan Chase Commercial Mortgage Securities Trust, 4.388%, Due 2/15/2046, 2011-C3 A3C			2,170			2,189
JPMBB Commercial Mortgage Securities Trust, 3.157%, Due 7/15/2045, 2013-C12 ASB			320,000			320,262
WFRBS Commercial Mortgage Trust, 3.660%, Due 3/15/2047, 2014-C19 A3			219,000			221,111
Total Commercial Mortgage-Backed Obligations (Cost $2,213,758)						2,167,640

See accompanying notes

19

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Principal Amount			Fair Value
ASSET-BACKED OBLIGATIONS - 0.74%
Ally Auto Receivables Trust, 1.750%, Due 12/15/2021, 2017 4 A3		$	285,000		$	280,930
Americredit Automobile Receivables Trust, 1.530%, Due 7/8/2021, 2016 4 A3			118,000			116,984
AmeriCredit Automobile Receivables Trust, 1.900%, Due 3/18/2022, 2017 3 A3			185,000			181,984
BMW Vehicle Lease Trust, 2.070%, Due 10/20/2020, 2017 2 A3			180,000			177,999
Capital One Multi-Asset Execution Trust, 1.340%, Due 4/15/2022, 2016 A3 A3			318,000			313,348
Chase Issuance Trust, 1.370%, Due 6/15/2021, 2016 A2 A			265,000			261,182
Ford Credit Auto Lease Trust, 2.030%, Due 12/15/2020, 2017 B A3			170,000			168,099
Ford Credit Auto Owner Trust, 2.030%, Due 8/15/2020, 2015 A B			292,000			290,475
GM Financial Automobile Leasing Trust, 2.060%, Due 5/20/2020, 2017 1 A3			284,000			282,080
GM Financial Consumer Automobile Receivables Trust, 2.320%, Due 7/18/2022, 2018 1 A3			95,000			93,832
Nissan Auto Receivables Owner Trust, 2.120%, Due 4/18/2022, 2017 C A3			100,000			98,560
World Omni Auto Receivables Trust, 1.950%, Due 2/15/2023, 2017 B A3			135,000			132,145
Total Asset-Backed Obligations (Cost $2,426,863)						2,397,618
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 4.68%
Federal Home Loan Mortgage Corp.,
4.500%, Due 3/1/2019			7,720			7,783
5.000%, Due 10/1/2020			7,719			7,853
3.500%, Due 8/1/2026			35,924			36,406
3.500%, Due 9/1/2028			245,318			248,757
5.000%, Due 8/1/2033			50,507			53,931
5.500%, Due 2/1/2034			49,705			54,452
4.000%, Due 1/1/2041			175,282			180,160
4.500%, Due 2/1/2041			125,810			132,434
3.500%, Due 6/1/2042			572,369			573,056
3.500%, Due 7/1/2042			159,861			160,053
3.500%, Due 11/1/2047			374,918			372,635
						1,827,520
Federal National Mortgage Association,
4.500%, Due 9/1/2018			1,720			1,732
4.000%, Due 8/1/2020			16,375			16,800
4.000%, Due 5/1/2026			149,139			153,111
4.000%, Due 6/1/2026			216,512			224,566
3.500%, Due 1/1/2028E			112,590			114,048
3.000%, Due 4/1/2032			233,878			232,152
5.000%, Due 3/1/2034E			55,098			59,340
4.500%, Due 4/1/2034			94,867			99,793
3.500%, Due 6/1/2037			323,549			325,845
5.500%, Due 6/1/2038			10,472			11,442
4.500%, Due 1/1/2040			138,636			145,886
5.000%, Due 5/1/2040			223,419			240,041
5.000%, Due 6/1/2040			170,337			183,175
4.000%, Due 9/1/2040			118,087			121,174
4.000%, Due 1/1/2041			231,503			237,561
4.500%, Due 10/1/2041			150,598			158,436
3.000%, Due 6/1/2043			910,155			885,459
3.500%, Due 7/1/2043			157,665			157,540
3.000%, Due 8/1/2043			792,142			770,698
4.000%, Due 11/1/2044E			137,176			141,334
4.000%, Due 7/1/2045			773,660			790,483
3.500%, Due 8/1/2045			147,430			146,675
3.500%, Due 11/1/2045			1,622,062			1,612,741
3.000%, Due 4/1/2046			190,856			184,404
3.500%, Due 5/1/2046			556,057			552,862
3.000%, Due 6/1/2046			298,777			288,675
4.000%, Due 7/1/2046			688,421			702,830
3.000%, Due 11/1/2046			369,478			357,452
3.500%, Due 11/1/2046			578,963			576,184
3.500%, Due 3/1/2047			117,865			117,150
4.500%, Due 7/1/2047			145,680			151,881

See accompanying notes

20

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Principal Amount			Fair Value
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 4.68% (continued)
Federal National Mortgage Association, (continued)
4.000%, Due 11/1/2047		$	326,168		$	332,910
4.500%, Due 12/1/2047			146,438			152,991
4.500%, Due 4/1/2048			269,367			281,373
						10,528,744
Government National Mortgage Association,
6.500%, Due 8/15/2027			47,375			52,990
6.500%, Due 11/15/2027			52,672			58,915
7.500%, Due 12/15/2028			47,673			53,719
5.500%, Due 7/15/2033			52,423			57,508
6.000%, Due 12/15/2033			66,221			76,181
5.500%, Due 2/20/2034			72,859			79,904
5.000%, Due 10/15/2039			108,177			116,231
3.500%, Due 9/15/2041			298,479			300,461
3.000%, Due 1/20/2046			87,532			85,765
3.000%, Due 6/20/2046			295,475			288,914
3.500%, Due 8/20/2047			153,182			153,535
3.500%, Due 10/20/2047			234,765			235,316
4.000%, Due 1/20/2048			539,109			552,621
4.500%, Due 2/20/2048			402,087			418,666
4.500%, Due 4/20/2048			245,000			255,471
						2,786,197
Total U.S. Agency Mortgage-Backed Obligations (Cost $15,452,893)						15,142,461
U.S. TREASURY OBLIGATIONS - 13.66%
U.S. Treasury Notes/Bonds,
2.018%, Due 7/31/2018, (3-mo. Treasury money market yield + 0.174%)D			13,340,000			13,347,264
1.984%, Due 1/31/2019, (3-mo. Treasury money market yield + 0.140%)D			2,496,000			2,499,542
1.914%, Due 4/30/2019, (3-mo. Treasury money market yield + 0.070%)D			3,355,000			3,358,941
1.125%, Due 5/31/2019			723,000			713,793
0.750%, Due 7/15/2019			646,000			633,787
0.875%, Due 7/31/2019			482,000			473,207
1.904%, Due 7/31/2019, (3-mo. Treasury money market yield + 0.060%)D			2,290,000			2,292,797
0.875%, Due 9/15/2019			1,205,000			1,180,335
1.250%, Due 2/29/2020			964,000			942,837
1.877%, Due 4/30/2020E			1,410,000			1,410,000
1.750%, Due 10/31/2020			964,000			944,607
1.250%, Due 3/31/2021			964,000			926,871
1.375%, Due 4/30/2021			964,000			929,055
2.000%, Due 5/31/2021			1,446,000			1,418,266
2.000%, Due 11/15/2021			1,264,000			1,234,819
2.000%, Due 2/15/2022			1,801,000			1,755,061
1.750%, Due 9/30/2022			500,000			479,043
1.625%, Due 11/15/2022			964,000			917,118
2.000%, Due 2/15/2023			500,000			482,578
2.625%, Due 2/28/2023			880,000			873,778
2.500%, Due 8/15/2023			964,000			949,088
2.375%, Due 8/15/2024			1,000,000			971,211
6.875%, Due 8/15/2025			279,000			352,161
2.000%, Due 11/15/2026			1,595,000			1,482,789
5.250%, Due 11/15/2028			217,000			262,240
4.750%, Due 2/15/2037			304,000			381,188
4.500%, Due 8/15/2039			241,000			296,769
3.125%, Due 11/15/2041			961,000			970,985
2.500%, Due 5/15/2046			1,963,000			1,743,466
						44,223,596
Total U.S. Treasury Obligations (Cost $44,579,927)						44,223,596

See accompanying notes

21

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
SHORT-TERM INVESTMENTS - 2.37% (Cost $7,674,972)
Investment Companies - 2.37%
American Beacon U.S. Government Money Market Select Fund, Select Class, 1.61%F G		7,674,972		$	7,674,972
SECURITIES LENDING COLLATERAL - 0.32% (Cost $1,020,973)
Investment Companies - 0.32%
American Beacon U.S. Government Money Market Select Fund, Select Class, 1.61%F G		1,020,973			1,020,973
TOTAL INVESTMENTS - 100.12% (Cost $275,597,800)					324,147,560
LIABILITIES, NET OF OTHER ASSETS - (0.12%)					(376,120	)
TOTAL NET ASSETS - 100.00%				$	323,771,440
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 at April 30, 2018.

^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 $5,908,658 or 1.82% 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, LIBOR or PRIME plus a fixed spread. The interest rate disclosed reflects the rate in effect on April 30, 2018.

^E 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.

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

^G 7-day yield.

ADR - American Depositary Receipt.

LIBOR - London Interbank Offered Rate.

LLC - Limited Liability Company.

LP - Limited Partnership.

MLP - Master Limited Partnership.

NVDR - Non Voting Depositary Receipt.

PLC - Public Limited Company.

Futures Contracts Open on April 30, 2018:
Long Futures
Equity Futures Contracts
Description	Number of Contracts	Expiration Date	Notional Amount		Contract Value		Unrealized Appreciation (Depreciation)
S&P 500 E-Mini Index Futures	49	June 2018	$	6,545,068	$	6,485,150	$	(59,918	)
			$	6,545,068	$	6,485,150	$	(59,918	)

Index Abbreviations:
S&P 500	Standard & Poor’s U.S. Equity Large-Cap Index

See accompanying notes

22

American Beacon Balanced Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of April 30, 2018, the investments were classified as described below:

Balanced Fund	Level 1			Level 2		Level 3		Total
Assets
Common Stocks	$	208,944,888		$	-	$	-	$	208,944,888
Corporate Obligations		-			36,023,210		-		36,023,210
Foreign Corporate Obligations		-			5,997,917		-		5,997,917
Foreign Sovereign Obligations		-			554,285		-		554,285
Commercial Mortgage-Backed Obligations		-			2,167,640		-		2,167,640
Asset-Backed Obligations		-			2,397,618		-		2,397,618
U.S. Agency Mortgage-Backed Obligations		-			15,142,461		-		15,142,461
U.S. Treasury Obligations		-			44,223,596		-		44,223,596
Short-Term Investments		7,674,972			-		-		7,674,972
Securities Lending Collateral		1,020,973			-		-		1,020,973
Total Investments in Securities - Assets	$	217,640,833		$	106,506,727	$	-	$	324,147,560
Financial Derivative Instruments - Liabilities
Futures Contracts	$	(59,918	)	$	-	$	-	$	(59,918	)
Total Financial Derivative Instruments - Liabilities	$	(59,918	)	$	-	$	-	$	(59,918	)

U.S. GAAP requires all transfers between any levels to be disclosed. The end of period timing recognition has been adopted for the transfers between levels of the Fund’s assets and liabilities. During the period ended April 30, 2018, there were no transfers between levels.

See accompanying notes

23

American Beacon Mid-Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.86%
Consumer Discretionary - 13.68%
Auto Components - 1.77%
Adient PLC		73,249		$	4,489,431
Dana, Inc.		247,922			5,883,189
Delphi Technologies PLC		84,727			4,101,634
					14,474,254
Diversified Consumer Services - 0.48%
Adtalem Global Education, Inc.A		81,800			3,893,680
Hotels, Restaurants & Leisure - 3.17%
Norwegian Cruise Line Holdings Ltd.A		141,697			7,576,538
Royal Caribbean Cruises Ltd.		65,320			7,066,971
SeaWorld Entertainment, Inc.A B		198,285			2,992,121
Wyndham Worldwide Corp.		71,801			8,200,392
					25,836,022
Household Durables - 1.73%
DR Horton, Inc.		122,629			5,412,844
Newell Brands, Inc.		81,629			2,255,409
Whirlpool Corp.		41,408			6,416,170
					14,084,423
Media - 2.98%
Interpublic Group of Cos, Inc.		314,335			7,415,163
Meredith Corp.		70,956			3,675,521
News Corp., Class A		333,122			5,323,290
Omnicom Group, Inc.		107,434			7,913,588
					24,327,562
Multiline Retail - 0.99%
Dollar General Corp.		83,465			8,056,876
Specialty Retail - 1.99%
Aaron’s, Inc.		100,511			4,198,344
Advance Auto Parts, Inc.		63,611			7,280,279
L Brands, Inc.		137,315			4,793,667
					16,272,290
Textiles, Apparel & Luxury Goods - 0.57%
Hanesbrands, Inc.		251,023			4,636,395
Total Consumer Discretionary					111,581,502
Consumer Staples - 1.48%
Beverages - 0.80%
Coca-Cola European Partners PLC		167,383			6,561,413
Household Products - 0.68%
Spectrum Brands Holdings, Inc.B		76,759			5,534,324
Total Consumer Staples					12,095,737
Energy - 9.04%
Energy Equipment & Services - 1.79%
Superior Energy Services, Inc.A		248,098			2,662,092
TechnipFMC PLC		199,268			6,567,873
Weatherford International PLCA B		1,808,960			5,336,432
					14,566,397

See accompanying notes

24

American Beacon Mid-Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.86% (continued)
Energy - 9.04% (continued)
Oil, Gas & Consumable Fuels - 7.25%
Cenovus Energy, Inc.B		605,572		$	6,073,887
Chesapeake Energy Corp.A B		558,104			1,657,569
Devon Energy Corp.		218,623			7,942,574
EQT Corp.		224,612			11,273,276
Golar LNG Ltd.		227,602			7,317,404
Murphy Oil Corp.		561,812			16,916,159
Vermilion Energy, Inc.B		236,604			7,999,581
					59,180,450
Total Energy					73,746,847
Financials - 24.15%
Banks - 7.77%
CIT Group, Inc.		88,214			4,670,931
Cullen/Frost Bankers, Inc.		25,214			2,885,742
Fifth Third Bancorp		489,439			16,234,692
FNB Corp.		417,940			5,433,220
KeyCorp		776,565			15,469,175
Pinnacle Financial Partners, Inc.		42,200			2,702,910
Regions Financial Corp.		431,348			8,066,208
Signature BankA		31,500			4,005,225
Valley National Bancorp		218,371			2,740,556
Webster Financial Corp.		18,633			1,121,520
					63,330,179
Capital Markets - 3.02%
Apollo Global Management LLC, Class A, MLP		190,325			5,488,973
Franklin Resources, Inc.		171,895			5,782,547
Invesco Ltd.		202,373			5,862,746
KKR & Co. LP		358,068			7,497,944
					24,632,210
Consumer Finance - 3.50%
Ally Financial, Inc.		423,206			11,045,677
Capital One Financial Corp.		20,842			1,888,702
Discover Financial Services		63,198			4,502,857
Navient Corp.		345,366			4,579,553
SLM Corp.A		568,622			6,527,781
					28,544,570
Diversified Financial Services - 1.60%
Leucadia National Corp.		113,985			2,740,200
Voya Financial, Inc.		197,275			10,327,346
					13,067,546
Insurance - 7.14%
Allstate Corp.		42,369			4,144,536
Assurant, Inc.		47,800			4,436,796
Axis Capital Holdings Ltd.		237,091			13,917,242
FNF GroupC		318,280			11,722,252
Hanover Insurance Group, Inc.		62,193			7,142,866
Torchmark Corp.		26,492			2,297,916
Willis Towers Watson PLC		98,233			14,588,583
					58,250,191

See accompanying notes

25

American Beacon Mid-Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.86% (continued)
Financials - 24.15% (continued)
Mortgage Real Estate Investment Trusts (REITs) - 0.40%
MFA Financial, Inc.		433,712		$	3,261,514
Thrifts & Mortgage Finance - 0.72%
New York Community Bancorp, Inc.		496,477			5,898,147
Total Financials					196,984,357
Health Care - 7.80%
Health Care Equipment & Supplies - 1.17%
Zimmer Biomet Holdings, Inc.		83,250			9,587,903
Health Care Providers & Services - 5.52%
Cardinal Health, Inc.		249,778			16,028,254
Cigna Corp.		42,198			7,250,460
MEDNAX, Inc.A		232,316			10,665,628
Universal Health Services, Inc., Class B		97,060			11,084,252
					45,028,594
Pharmaceuticals - 1.11%
Mylan N.V.A		233,396			9,046,429
Total Health Care					63,662,926
Industrials - 15.71%
Aerospace & Defense - 2.42%
Spirit AeroSystems Holdings, Inc., Class A		110,247			8,860,551
TransDigm Group, Inc.		33,838			10,847,448
					19,707,999
Airlines - 0.54%
Alaska Air Group, Inc.		68,000			4,415,240
Building Products - 2.32%
JELD-WEN Holding, Inc.A		298,586			8,393,253
Johnson Controls International PLC		118,058			3,998,624
Owens Corning		99,085			6,489,077
					18,880,954
Commercial Services & Supplies - 0.87%
Republic Services, Inc.		110,115			7,122,238
Construction & Engineering - 1.27%
AECOMA		144,791			4,986,602
KBR, Inc.		322,787			5,387,315
					10,373,917
Industrial Conglomerates - 1.04%
Carlisle Companies, Inc.		78,521			8,459,067
Machinery - 3.89%
Dover Corp.		153,126			14,194,780
Snap-on, Inc.		35,428			5,145,917
Stanley Black & Decker, Inc.		54,041			7,651,665
Terex Corp.		128,807			4,704,032
					31,696,394

See accompanying notes

26

American Beacon Mid-Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.86% (continued)
Industrials - 15.71% (continued)
Professional Services - 0.56%
Nielsen Holdings PLC		145,578		$	4,578,428
Road & Rail - 1.90%
Avis Budget Group, Inc.A		126,547			6,252,687
Ryder System, Inc.		137,471			9,269,670
					15,522,357
Trading Companies & Distributors - 0.90%
AerCap Holdings N.V.A		141,300			7,365,969
Total Industrials					128,122,563
Information Technology - 9.05%
Electronic Equipment, Instruments & Components - 3.07%
Anixter International, Inc.A		90,300			5,318,670
Avnet, Inc.		290,485			11,395,727
Flex Ltd.A		153,578			1,996,514
Keysight Technologies, Inc.A		123,130			6,363,358
					25,074,269
IT Services - 1.82%
Alliance Data Systems Corp.		24,100			4,893,505
Genpact Ltd.		165,393			5,274,383
Total System Services, Inc.		55,766			4,687,690
					14,855,578
Semiconductors & Semiconductor Equipment - 3.00%
Marvell Technology Group Ltd.		379,124			7,605,227
Microchip Technology, Inc.		131,619			11,011,246
Versum Materials, Inc.		166,725			5,865,385
					24,481,858
Software - 0.19%
Micro Focus International PLC, Sponsored ADR		89,690			1,553,431
Technology Hardware, Storage & Peripherals - 0.97%
Hewlett Packard Enterprise Co.		462,041			7,877,799
Total Information Technology					73,842,935
Materials - 4.30%
Chemicals - 2.71%
Ashland Global Holdings, Inc.		90,953			6,019,270
Axalta Coating Systems Ltd.A		229,248			7,083,763
Celanese Corp., Series A		30,293			3,291,940
Eastman Chemical Co.		56,002			5,716,684
					22,111,657
Construction Materials - 0.32%
CRH PLC, Sponsored ADRB		72,898			2,577,673
Containers & Packaging - 1.27%
Owens-Illinois, Inc.A		242,067			4,921,222
Packaging Corp. of America		47,096			5,448,537
					10,369,759
Total Materials					35,059,089

See accompanying notes

27

American Beacon Mid-Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

	Shares		Fair Value
COMMON STOCKS - 95.86% (continued)
Real Estate - 4.65%
Equity Real Estate Investment Trusts (REITs) - 4.08%
AvalonBay Communities, Inc.		36,748		$	5,989,924
EPR Properties		130,864			7,200,137
GEO Group, Inc.		94,141			2,118,173
Lamar Advertising Co., Class A		109,575			6,981,023
MGM Growth Properties LLC, Class A		391,896			10,961,331
					33,250,588
Real Estate Management & Development - 0.57%
Realogy Holdings Corp.B		188,489			4,676,412
Total Real Estate					37,927,000
Utilities - 6.00%
Electric Utilities - 5.34%
Edison International		138,196			9,054,602
Great Plains Energy, Inc.		292,147			9,561,971
Pinnacle West Capital Corp.		206,234			16,601,837
Xcel Energy, Inc.		178,507			8,361,268
					43,579,678
Gas Utilities - 0.66%
UGI Corp.		110,532			5,348,644
Total Utilities					48,928,322
Total Common Stocks (Cost $711,420,109)					781,951,278
SHORT-TERM INVESTMENTS - 4.51% (Cost $36,806,943)
Investment Companies - 4.51%
American Beacon U.S. Government Money Market Select Fund, Select Class, 1.61%D E		36,806,943			36,806,943
SECURITIES LENDING COLLATERAL - 3.13% (Cost $25,546,272)
Investment Companies - 3.13%
American Beacon U.S. Government Money Market Select Fund, Select Class, 1.61%D E		25,546,272			25,546,272
TOTAL INVESTMENTS - 103.50% (Cost $773,773,324)					844,304,493
LIABILITIES, NET OF OTHER ASSETS - (3.50%)					(28,567,428	)
TOTAL NET ASSETS - 100.00%				$	815,737,065
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 at April 30, 2018.

^C Tracking Stock - A form of common stock that is issued by a parent company and tracks the performance of a specific division of that parent company. It allows investors the chance to invest in an individual sector of a company while the parent company maintains overall control.

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

^E 7-day yield.

ADR - American Depositary Receipt.

LLC - Limited Liability Company.

LP - Limited Partnership.

MLP - Master Limited Partnership.

PLC - Public Limited Company.

See accompanying notes

28

American Beacon Mid-Cap Value Fund^SM

Schedule of Investments

April 30, 2018 (Unaudited)

Futures Contracts Open on April 30, 2018:
Long Futures
Equity Futures Contracts
Description	Number of Contracts	Expiration Date	Notional Amount	Contract Value		Unrealized Appreciation (Depreciation)
S&P MidCap 400 E-Mini Index Futures	177	June 2018	$34,062,770	$	33,136,170	$	(926,600	)
			$34,062,770	$	33,136,170	$	(926,600	)

Index Abbreviations:
S&P	Standard & Poor’s

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of April 30, 2018, the investments were classified as described below:

Mid-Cap Value Fund	Level 1			Level 2		Level 3		Total
Assets
Common Stocks	$	781,951,278		$	-	$	-	$	781,951,278
Short-Term Investments		36,806,943			-		-		36,806,943
Securities Lending Collateral		25,546,272			-		-		25,546,272
Total Investments in Securities - Assets	$	844,304,493		$	-	$	-	$	844,304,493
Financial Derivative Instruments - Liabilities
Futures Contracts	$	(926,600	)	$	-	$	-	$	(926,600	)
Total Financial Derivative Instruments - Liabilities	$	(926,600	)	$	-	$	-	$	(926,600	)

U.S. GAAP requires all transfers between any levels to be disclosed. The end of period timing recognition has been adopted for the transfers between levels of the Fund’s assets and liabilities. During the period ended April 30, 2018, there were no transfers between levels.

See accompanying notes

29

American Beacon Funds^SM

Statements of Assets and Liabilities

April 30, 2018 (Unaudited)

	Balanced Fund			Mid-Cap Value Fund
Assets:
Investments in unaffiliated securities, at fair value† §	$	315,451,615		$	781,951,278
Investments in affiliated securities, at fair value‡		8,695,945			62,353,215
Deposit with brokers for futures contracts		333,512			1,924,908
Dividends and interest receivable		770,479			467,157
Receivable for investments sold		52,148			507,991
Receivable for fund shares sold		109,685			1,064,592
Receivable for expense reimbursement (Note 2)		-			148
Prepaid expenses		240,236			92,296
Total assets		325,653,620			848,361,585
Liabilities:
Payable for investments purchased		147,652			4,216,949
Payable for fund shares redeemed		343,762			1,229,953
Payable for variation margin from open futures contracts (Note 5)		59,834			926,241
Payable upon return of securities loaned (Note 9)§		1,020,973			25,546,272
Management and sub-advisory fees payable (Note 2)		137,926			524,946
Service fees payable (Note 2)		60,510			108,215
Transfer agent fees payable (Note 2)		15,163			20,860
Custody and fund accounting fees payable		53,186			31,626
Professional fees payable		29,262			15,995
Trustee fees payable (Note 2)		860			-
Payable for prospectus and shareholder reports		12,253			-
Other liabilities		799			3,463
Total liabilities		1,882,180			32,624,520
Net assets	$	323,771,440		$	815,737,065
Analysis of net assets:
Paid-in-capital	$	264,801,312		$	726,531,586
Undistributed net investment income		1,413,151			2,557,232
Accumulated net realized gain		9,067,135			17,043,615
Unrealized appreciation of investments in unaffiliated securitiesA		48,549,760			70,531,169
Unrealized appreciation of foreign currency transactions		-			63
Unrealized (depreciation) of futures contracts		(59,918	)		(926,600	)
Net assets	$	323,771,440		$	815,737,065

See accompanying notes

30

American Beacon Funds^SM

Statements of Assets and Liabilities

April 30, 2018 (Unaudited)

	Balanced Fund		Mid-Cap Value Fund
Shares outstanding at no par value (unlimited shares authorized):
Institutional Class		4,539,192		16,608,295
Y Class		3,932,569		6,630,763
Investor Class		7,921,735		24,207,521
Advisor Class		439,346		246,455
A Class		1,425,725		887,125
C Class		2,674,808		439,571
R6 ClassB		N/A		5,903
Net assets:
Institutional Class	$	74,831,833	$	275,607,991
Y Class	$	65,258,364	$	109,139,225
Investor Class	$	116,294,718	$	405,581,397
Advisor Class	$	6,842,344	$	4,007,125
A Class	$	20,896,532	$	14,404,048
C Class	$	39,647,649	$	6,899,344
R6 ClassB		N/A	$	97,935
Net asset value, offering and redemption price per share:
Institutional ClassC	$	16.49	$	16.59
Y Class	$	16.59	$	16.46
Investor Class	$	14.68	$	16.75
Advisor Class	$	15.57	$	16.26
A Class	$	14.66	$	16.24
A Class (offering price)	$	15.55	$	17.22
C Class	$	14.82	$	15.70
R6 ClassB		N/A	$	16.59
† Cost of investments in unaffiliated securities	$	266,901,855	$	711,420,109
‡ Cost of investments in affiliated securities	$	8,695,945	$	62,353,215
§ Fair value of securities on loan	$	985,712	$	24,558,560

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

^B Class commenced operations March 1, 2018 (Note 1).

^C Net asset value has been rounded due to inclusion of the AMR Class assets of the Balanced Fund (Note 1).

See accompanying notes

31

American Beacon Funds^SM

Statements of Operations

For the period ended April 30, 2018 (Unaudited)

	Balanced Fund			Mid-Cap Value Fund
Investment income:
Dividend income from unaffiliated securities (net of foreign taxes)†	$	2,698,241		$	7,607,847
Dividend income from affiliated securities (Note 8)		36,156			283,770
Interest income (net of foreign taxes)†		1,522,876			2,012
Income derived from securities lending (Note 9)		20,269			43,390
Total investment income		4,277,542			7,937,019
Expenses:
Management and sub-advisory fees (Note 2)		903,029			2,951,631
Transfer agent fees:
Institutional Class (Note 2)		6,232			28,224
Y Class (Note 2)A		28,887			50,211
Investor Class		4,648			6,184
Advisor Class		293			1,141
A Class		905			820
C Class		1,312			640
R6 Class		-			305
Custody and fund accounting fees		38,883			39,846
Professional fees		31,354			28,349
Registration fees and expenses		43,166			55,789
Service fees (Note 2):
Investor Class		178,723			411,970
Advisor Class		11,688	A		4,557
A Class		(11,498	)A		10,095
C Class		(34,541	)A		211
Distribution fees (Note 2):
Advisor Class		11,688			4,557
A Class		26,865			18,509
C Class		207,392			34,447
Prospectus and shareholder report expenses		18,715			22,328
Trustee fees (Note 2)		11,070			20,879
Other expenses		19,541			21,964
Total expenses		1,498,352			3,712,657
Net fees waived and expenses (reimbursed) / recouped (Note 2)		-			(301	)
Net expenses		1,498,352			3,712,356
Net investment income		2,779,190			4,224,663
Realized and unrealized gain (loss) from investments:
Net realized gain (loss) from:
Investments in unaffiliated securitiesB		10,781,628			20,648,418
Commission recapture (Note 1)		1,522			36,561
Foreign currency transactions		699			(104	)
Futures contracts		134,900			2,236,679
Change in net unrealized appreciation (depreciation) of:
Investments in unaffiliated securitiesC		(7,262,175	)		(39,972,361	)
Foreign currency transactions		-			191
Futures contracts		(157,597	)		(2,187,738	)
Net gain (loss) from investments		3,498,977			(19,238,354	)
Net increase (decrease) in net assets resulting from operations	$	6,278,167		$	(15,013,691	)
† Foreign taxes	$	23,600		$	39,862

^A The Manager voluntarily reimbursed service fees and sub-transfer agent fees (Note 2).

^B The Fund did not recognize net realized gains (losses) from the sale of investments in affiliated securities.

^C The Fund’s investments in affiliated securities did not have a change in unrealized appreciation (depreciation) at period end.

See accompanying notes

32

American Beacon Funds^SM

Statements of Changes in Net Assets

	Balanced Fund						Mid-Cap Value Fund
	Six Months Ended April 30, 2018			Year Ended October 31, 2017			Six Months Ended April 30, 2018			Year Ended October 31, 2017
	(unaudited)						(unaudited)
Increase (decrease) in net assets:
Operations:
Net investment income	$	2,779,190		$	8,296,612		$	4,224,663		$	5,825,978
Net realized gain from investments in unaffiliated securities, commission recapture, foreign currency transactions, and futures contracts		10,918,749			61,221,937			22,921,554			34,267,279
Change in net unrealized appreciation (depreciation) of investments in unaffiliated securities, foreign currency transactions, and futures contracts		(7,419,772	)		11,140,075			(42,159,908	)		92,030,585
Net increase (decrease) in net assets resulting from operations		6,278,167			80,658,624			(15,013,691	)		132,123,842
Distributions to shareholders:
Net investment income:
Institutional Class		(1,561,784	)		(3,922,895	)		(2,517,255	)		(3,184,300	)
Y Class		(1,175,553	)		(1,320,074	)		(867,845	)		(1,054,082	)
Investor Class		(2,327,766	)		(2,791,629	)		(2,066,989	)		(3,122,003	)
Advisor Class		(171,069	)		(196,602	)		(5,325	)		(63,730	)
A Class		(422,397	)		(506,915	)		(59,166	)		(224,784	)
C Class		(657,743	)		(535,923	)		-			(30,824	)
Net realized gain from investments:
Institutional Class		(4,036,261	)		-			(6,917,398	)		-
Y Class		(3,001,735	)		-			(2,579,185	)		-
Investor Class		(6,279,352	)		-			(7,195,645	)		-
Advisor Class		(538,844	)		-			(89,403	)		-
A Class		(1,099,592	)		-			(374,971	)		-
C Class		(2,097,060	)		-			(184,144	)		-
Net distributions to shareholders		(23,369,156	)		(9,274,038	)		(22,857,326	)		(7,679,723	)
Capital share transactions (Note 11):
Proceeds from sales of shares		26,853,327			125,828,653			272,397,062			180,157,266
Reinvestment of dividends and distributions		22,665,976			8,901,335			22,545,457			7,582,763
Cost of shares redeemed		(61,198,402	)		(571,205,485	)		(110,385,176	)		(183,160,251	)
Net increase (decrease) in net assets from capital share transactions		(11,679,099	)		(436,475,497	)		184,557,343			4,579,778
Net increase (decrease) in net assets		(28,770,088	)		(365,090,911	)		146,686,326			129,023,897
Net assets:
Beginning of period		352,541,528			717,632,439			669,050,739			540,026,842
End of period *	$	323,771,440		$	352,541,528		$	815,737,065		$	669,050,739
*Includes undistributed net investment income	$	1,413,151		$	4,950,273		$	2,557,232		$	3,849,149

See accompanying notes

33

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

1.  Organization and Significant Accounting Policies

American Beacon Funds (the “Trust”), is organized as a Massachusetts business trust. The Funds, each a series within the Trust, are registered under the Investment Company Act of 1940 (the “Act”), as amended, as diversified, open-end management investment companies. As of April 30, 2018, the Trust consists of thirty-three active series, two of which are presented in this filing: American Beacon Balanced Fund and American Beacon Mid-Cap Value Fund (collectively, the “Funds” and each individually a “Fund”). The remaining thirty-one active series are reported in separate filings.

American Beacon Advisors, Inc. (the “Manager”) is a wholly-owned subsidiary of Resolute Investment Managers, Inc., which is indirectly owned by investment funds affiliated with Kelso & Company, L.P. and Estancia Capital Management, LLC, and was organized in 1986 to provide business management, advisory, administrative, and asset management consulting services to the Trust and other investors.

Class Disclosure

February 28, 2018 is the inception date of the R6 Class of the Mid-Cap Value Fund.

Each Fund has multiple classes of shares designed to meet the needs of different groups of investors; however, not all of the Funds offer all classes. The following table sets forth the differences amongst the classes:

Class	Eligible Investors	Minimum Initial Investments
Institutional	Large institutional investors - sold directly or through intermediary channels.	$	250,000
Y Class	Large institutional retirement plan investors - sold directly or through intermediary channels.	$	100,000
Investor	All investors using intermediary organizations, such as broker-dealers or retirement plan sponsors.	$	2,500
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
R6	Large institutional retirement plan investors – sold through retirement plan sponsors.		None

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 on the basis of the relative net assets. Realized and unrealized capital gains and losses of each class are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include service, distribution, transfer agent fees, and sub-transfer agent fees that vary amongst the classes as described more fully in Note 2.

Significant Accounting Policies

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

34

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Security Transactions and Investment Income

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

Dividend income, net of foreign taxes, is recorded on the ex-dividend date, except certain dividends from foreign securities which are recorded as soon as the information is available to the Funds. Interest income 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. Realised 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 Statements 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

Distributions, if any, of net investment income of the Balanced Fund will normally be declared and paid quarterly. Distributions, if any, of net investment income of the Mid-Cap Value Fund will normally be declared and be paid at least annually. Distributions, if any, of net realized capital gains are generally paid at least annually and recorded on the ex-dividend date. Dividends to shareholders are determined in accordance with federal income tax regulations, which may differ in amount and character from net investment income and realized gains recognized for purposes of U.S. GAAP. To the extent necessary to fully distribute capital gains, the Funds may designate earnings and profits distributed to shareholders on the redemption of shares.

Commission Recapture

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

Allocation of Income, Trust Expenses, Gains, and Losses

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

35

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

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.

Concentration of Ownership

From time to time, the Funds may have a concentration of one or more accounts constituting a significant percentage of shares outstanding. Investment activities by holders of accounts that represent a significant ownership of more than 5% of the Funds’ outstanding shares could have a material impact on the Funds. As of April 30, 2018, based on management’s evaluation of the shareholder account base, exclusive of omnibus accounts, one account has been identified as representing a non-affiliated significant ownership of approximately 7% of the Balanced Fund’s outstanding shares and one account has been identified as representing a non-affiliated significant ownership of approximately 16% of the Mid-Cap Value Fund’s outstanding shares.

2.  Transactions with Affiliates

Management and Investment Sub-Advisory Agreements

The Funds and the Manager are parties to a Management Agreement that obligates the Manager to provide the Funds with investment advisory and administrative services. As compensation for performing the duties under the Management Agreement, the Manager will receive an annualized management fee based on a percentage of each Funds’ 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 Funds, and the Manager have entered into Investment Advisory Agreements with Barrow, Hanley, Mewhinney & Strauss, LLC; Brandywine Global Investment Management, LLC; and Hotchkis and Wiley Capital Management, LLC for the Balanced Fund. In addition, the Manager manages a portion of the Balanced Fund pursuant to the Management Agreement. The Trust, on behalf of the Funds, and the Manager have entered into Investment Advisory Agreements with Barrow, Hanley, Mewhinney & Strauss, LLC; Pzena Investment Management, LLC; and WEDGE Capital Management, L.L.P. for the Mid-Cap Value Fund. Pursuant to the Investment Advisory Agreements, the Funds have agreed to pay an annualized sub-advisory fee that is calculated and accrued daily based on the Funds’ average daily net assets.

The Management and Sub-Advisory Fees paid by the Funds for the period ended April 30, 2018 were as follows:

Balanced Fund

	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.36	%	$	601,851
Sub-Advisor Fees		0.18	%		301,178
Total		0.54	%	$	903,029

36

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Mid-Cap Value Fund

	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.35	%	$	1,336,518
Sub-Advisor Fees		0.44	%		1,615,113
Total		0.79	%	$	2,951,631

As compensation for services provided by the Manager in connection with securities lending activities conducted by the Funds, the lending Fund pays to the Manager, with respect to cash collateral posted by borrowers, a fee up to 10% of the net monthly interest income (the gross interest income earned by the investment of cash collateral, less the amount paid to borrowers and related expenses) from such activities and, with respect to loan fees paid by borrowers, a fee up to 10% of such loan fees. These fees are included in “Income derived from securities lending” and “Management and investment advisory fees” on the Statements of Operations. During the period ended April 30, 2018, the Manager received securities lending fees of $2,194 and $4,833 for the securities lending activities of the Balanced Fund and Mid-Cap Value Fund, respectively.

Distribution Plans

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

Separate Distribution Plans (the “Distribution Plans”) have been adopted pursuant to Rule 12b-1 under the Act for the Advisor, A, and C Classes of the Funds. Under the Distribution Plans, as compensation for distribution 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 Service Plans that obligate the Manager to oversee additional shareholder servicing of the Investor, Advisor, A, and C Classes of the Funds. As compensation for performing the duties required under the Service Plans, the Manager receives an annualized fee up to 0.25% of the average daily net assets of the A and C Classes, 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 Funds. During the period ended April 31, 2018 the Manager voluntarily reimbursed service fees to the Advisor, A and C Classes of the Balanced Fund in the amounts of $115, $28,001 and $66,581, respectively. Service fees to the A and C Classes of the Mid-Cap Value Fund were reimbursed in the amount of $1,233 and $5,045, respectively.

Sub-Transfer Agent Fees

The Manager has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Institutional and Y Classes of the Funds and has agreed to compensate the intermediaries for providing these services. Intermediaries transact with the Funds primarily through the use of omnibus accounts on behalf of their customers who hold positions in the Funds. Certain services would have been provided by the Funds’ transfer agent and other service providers if the shareholders’ accounts were maintained directly by the Funds’ transfer agent. Accordingly, the Funds, pursuant to Board approval, have agreed to reimburse the Manager for certain non-distribution shareholder services provided by financial

37

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

intermediaries for the Institutional and Y Classes. The reimbursement amounts (sub-transfer agent fees) paid to the Manager are subject to a fee limit of up to 0.10% of an intermediary’s average net assets in the Institutional and Y Classes on an annual basis. During the period ended April 30, 2018, the sub-transfer agent fees, as reflected in “Transfer agent fees” on the Statements of Operations, were as follows:

Fund	Sub-Transfer Agent Fees
Balanced	$	31,976
Mid-Cap Value		67,823

As of April 30, 2018, the Funds owed the Manager the following reimbursement of sub-transfer agent fees, as reflected in “Transfer agent fees payable” on the Statements of Assets and Liabilities:

Fund	Reimbursement Sub-Transfer Agent Fees
Balanced	$	7,250
Mid-Cap Value		11,078

During the period ended April 30, 2018, the Manager voluntarily reimbursed sub-transfer agent fees to the Y Classes of the Balanced Fund and the Mid-Cap Value Fund in the amount of $3,923 and $1,436, respectively.

Investments in Affiliated Funds

The Funds may invest in the American Beacon U.S. Government Money Market Select Fund (the “USG Select Fund”). Cash collateral received by the Funds in connection with securities lending may also be invested in the USG Select Fund. The Funds and the USG Select Fund have the same investment advisor and therefore, are considered to be affiliated. The Manager serves as investment advisor to the USG Select Fund and receives management fees and administrative fees totaling 0.10% of the average daily net assets of the USG Select Fund. During the period ended April 30, 2018, the Manager earned fees on the Funds’ 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 in USG Select Fund		Total
Balanced	$	2,911	$	2,862	$	5,773
Mid-Cap Value		22,233		9,479		31,712

Interfund Credit Facility

Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), the Funds, along with other registered investment companies having management contracts with the Manager, may participate in a credit facility whereby each Fund, under certain conditions, is permitted to lend money directly to and borrow directly from other participating Funds for temporary purposes. The interfund credit facility is advantageous to the Funds because it provides added liquidity, and eliminates the need to maintain higher cash balances to meet redemptions. This situation could arise when shareholder redemptions exceed anticipated volumes and certain funds have insufficient cash on hand to satisfy such redemptions or when sales of securities do not settle as expected, resulting in a cash shortfall for a fund. When a Fund liquidates portfolio securities to meet redemption requests, they often do not receive payment in settlement for up to two days (or longer for certain foreign transactions). Redemption requests normally are satisfied on the next business day. The credit facility provides a source of immediate, short-term liquidity pending settlement of the sale of portfolio securities. The credit facility is administered by a credit facility team consisting of professionals from the Manager’s asset management, compliance, and accounting areas who report the activities of the credit facility to the Board. During the period ended April 30, 2018, the Balanced Fund borrowed on average $4,754,923 for 1 day at an average interest rate of 2.06% with interest charges of $268. This amount is included in “Other expenses” on the Statements of Operations. For the period ended April 30, 2018, the Mid-Cap Value Fund did not utilize the credit facility.

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American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Expense Reimbursement Plan

The Manager voluntarily agreed to reduce fees and/or reimburse expenses for the classes of the Funds to the extent that total operating expenses exceed the Funds’ expense cap. During the period ended April 30, 2018, the Manager waived and/or reimbursed expenses as follows:

			Expense Cap
Fund	Class		11/1/2017 - 4/30/2018			Reimbursed Expenses		(Recouped) Expenses		Expiration of Reimbursed Expenses
Mid-Cap Value		R6		0.88	%(1)	$	301	$	–		2021

⁽¹⁾ Voluntary expense cap effective February 28, 2018.

Of these amounts, $148 was disclosed as a receivable from the Manager on the Statements of Assets and Liabilities at April 30, 2018 for the Mid-Cap Value Fund.

The Funds have adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of such fee reductions and expense reimbursements. Under the policy, the Manager can be reimbursed by the Funds for any contractual or voluntary fee reductions or expense reimbursements if reimbursement to the Manager (a) occurs within three years after the Manager’s own waiver or reimbursement and (b) does not cause the Funds’ annual operating expenses to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or time of recoupment. The reimbursed expenses listed above will expire in 2021. The Fund did not record a liability for potential reimbursement due to the current assessment that a reimbursement is unlikely.

The Distributor

Effective March 1, 2018, Resolute Investment Distributors, Inc. (“RID” or “Distributor”) replaced Foreside Fund Services, LLC (“Foreside”) as the Fund(s)’ distributor and principal underwriter of the Funds’ shares.

RID is a registered broker-dealer and is a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”). The Distributor is affiliated with the Manager through common ownership. Under a Distribution Agreement with the Trust, the Distributor acts as the distributor and principal underwriter of the Trust in connection with the continuous offering of shares of the Funds. The Distributor continually distributes shares of the Funds on a best efforts basis. The Distributor has no obligation to sell any specific quantity of the Funds’ shares. Pursuant to the Distribution Agreement, to the extent applicable, the Distributor receives, and may re-allow to broker-dealers, all or a portion of the sales charge paid by the purchasers of A Class and C Class shares. For A Class and C Class shares, the Distributor receives commission revenue consisting of the portion of A Class and C Class sales charge remaining after the allowances by the Distributor to the broker-dealers. The Distributor retains any portion of the commission fees that are not paid to the broker-dealers for use solely to pay distribution related expenses.

Prior to March 1, 2018, Foreside served as the distributor and principal underwriter of the Funds’ shares. Pursuant to a Sub-Administration Agreement between Foreside and the Manager in effect through February 28, 2018, Foreside received a fee from the Manager for providing administrative services in connection with the marketing and distribution of shares of the Trust, including the registration of Manager employees as registered representatives of Foreside to facilitate distribution of Fund shares. Foreside also received a fee from the Manager under a Marketing Agreement pursuant to which Foreside provided services in connection with the marketing of a Fund to institutional investors. Pursuant to the Distribution Agreement with the Trust in effect through February 28, 2018, Foreside received, and may have re-allowed to broker-dealers, all or a portion of the sales charge paid by the purchasers of A and C Class shares. For A and C Class shares, Foreside received commission revenues consisting of the portion of A and C Class sales charge remaining after the allowances by Foreside to the broker dealers. Foreside retained any portion of the commission fees that were not paid to the broker-dealers for use solely to pay distribution related expenses.

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American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Sales Commissions

The Funds’ Distributor, formerly Foreside, may receive a portion of A Class sales charges from broker dealers and it may be used to offset distribution related expenses. During the period ended February 28, 2018, Foreside collected $3,380 and $2,255 in sales commissions for Balanced Fund and Mid-Cap Value Fund, respectively, from the sale of Class A Shares. During the period March 1, 2018 through April 30, 2018, RID collected $1,994 and $82 for the Balanced Fund and Mid-Cap Value Fund, respectively, from the sale of Class A Shares.

A CDSC of 0.50% will be deducted with respect to Class A Shares on certain purchases of $1,000,000 or more that are redeemed in whole or part within 18 months of purchase, unless waived as discussed in the Funds’ Prospectus. Any applicable CDSC will be 0.50% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended April 30, 2018, there were no CDSC fees collected for Class A Shares of the Funds.

A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived as discussed in the Funds’ Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended February 28, 2018, Foreside collected CDSC fees of $2,422 and $64 for Class C Shares of the Balanced Fund and Mid-Cap Value Fund, respectively. During the period March 1, 2018 through April 30, 2018, RID collected $487 and $482 for both Funds, respectively, for Class C Shares.

Trustee Fees and Expenses

As compensation for their service to the Trust, American Beacon Select Funds, American Beacon Institutional Funds Trust, and American Beacon Sound Point Enhanced Income Fund, each Trustee receives an annual retainer of $120,000, plus $10,000 for each Board meeting attended in person or via teleconference, $2,500 for attendance by Committee members at meetings of the Audit Committee and the Investment Committee, and $1,500 for attendance by Committee members at meetings of the Nominating and Governance Committee, plus reimbursement of reasonable expenses incurred in attending Board meetings, Committee meetings, and relevant educational seminars. The Trustees also may be compensated for attendance at special Board and/or Committee meetings from time to time. The Board Chairman receives an additional annual retainer of $50,000 as well as a $2,500 fee each quarter for his attendance at the committee meetings. Effective January 1, 2018, the Board Vice Chair receives an additional annual retainer of $10,000. The Chairpersons of the Audit Committee and the Investment Committee each receive an additional annual retainer of $25,000 and the Chairman of the Nominating and Governance Committee receives an additional annual retainer of $10,000. These expenses are allocated on a prorated basis to each Fund of the Trusts according to its respective net assets.

3.  Security Valuation and Fair Value Measurements

The price of the Fund’s shares is based on the Fund’s Net Asset Value (“NAV”). The NAV of the Fund, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Fund or class, by the total number of shares outstanding of the Fund or class.

Investments are valued at the close of the New York Stock Exchange (the “Exchange”), normally at 4:00 p.m. Eastern Time, each day that the Exchange is open for business. Equity securities, including exchange-traded funds (“ETFs”) for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade.

Debt securities normally are valued on the basis of prices provided by an independent pricing service and may take into account appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. Prices of debt securities may be determined using quotes obtained from brokers. Certain fixed-income securities purchased on a delayed-delivery basis are marked-to-market daily until settlement at the forward settlement date.

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American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Investments in open-end mutual funds are valued at the closing NAV per share of the mutual fund on the day of valuation.

Securities for which the market prices are not readily available or are not reflective of the fair value of the security, as determined by the Manager, will be priced at fair value following procedures approved by the Board.

Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Funds are required to deposit with their futures broker, an amount of cash or U.S. Government and Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked-to-market daily and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Funds. Gains or losses are recognized, but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities.

Other investments, including restricted securities and those financial instruments for which the above valuation procedures are inappropriate or are deemed not to reflect fair value, are stated at fair value, as determined in good faith by the Manager’s Valuation Committee, pursuant to procedures established by the Board.

Valuation Inputs

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

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

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

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

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

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by pricing service providers that use broker-dealer quotations or valuation estimates from their internal pricing models. The pricing models for these securities

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American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

usually consider tranche-level attributes, current market data, estimated cash flows, and market-based yield spreads for each tranche, and incorporates deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

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

4.  Securities and Other Investments

Agency Mortgage-Backed Securities

Certain mortgage-backed securities (“MBS”) may be issued or guaranteed by the U.S. government or a government sponsored entity, such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”). Although these instruments may be guaranteed by the U.S. government or a government sponsored entity, many such MBS are not backed by the full faith and credit of the United States and are still exposed to the risk of non-payment.

American Depositary Receipts and Non-Voting Depositary Receipts

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

Asset-Backed Securities

Asset-Back Securities (“ABS”) may include MBS, loans, receivables or other assets. The value of the Funds’ ABS may be affected by, among other things, actual or perceived changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the receivables, the market’s assessment of the quality of underlying assets or actual or perceived changes in the credit worthiness of the individual borrowers, the originator, the servicing agent or the financial institution providing the credit support.

Payment of principal and interest may be largely dependent upon the cash flows generated by the assets backing the securities.

Rising or high interest rates tend to extend the duration of ABS, making them more volatile and more sensitive to changes in interest rates. The underlying assets are sometimes subject to prepayments which can shorten the security’s weighted average life and may lower its return. Defaults on loans underlying ABS have become an increasing risk for ABS that are secured by home equity loans related to sub-prime, Alt-A or non conforming mortgage loans, especially in a declining residential real estate market.

42

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

ABS (other than MBS) present certain risks that are not presented by MBS. Primarily, these securities may not have the benefit of any security interest in the related assets. Credit card receivables are generally unsecured and the debtors are entitled to the protection of a number of state and federal consumer credit laws, many of which give such debtors the right to set off certain amounts owed on the credit cards, thereby reducing the balance due. There is the possibility that recoveries on repossessed collateral may not, in some cases, be available to support payments on these securities. ABS are often backed by a pool of assets representing the obligations of a number of different parties. To lessen the effect of failures by obligors on underlying assets to make payments, the securities may contain elements of credit support which fall into two categories: (i) liquidity protection, and (ii) protection against losses resulting from ultimate default by an obligor on the underlying assets. Liquidity protection refers to the provision of advances, generally by the entity administering the pool of assets, to ensure that the receipt of payments on the underlying pool occurs in a timely fashion. Protection against losses results from payment of the insurance obligations on at least a portion of the assets in the pool. This protection may be provided through guarantees, policies or letters of credit obtained by the issuer or sponsor from third parties, through various means of structuring the transaction or through a combination of such approaches. The Funds will not pay any additional or separate fees for credit support. The degree of credit support provided for each issue is generally based on historical information respecting the level of credit risk associated with the underlying assets.

Delinquency or loss in excess of that anticipated or failure of the credit support could adversely affect the return on an investment in such a security. The availability of ABS may be affected by legislative or regulatory developments. It is possible that such developments may require the Funds to dispose of any then existing holdings of such securities.

Common Stock

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

Fixed-Income Investments

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

43

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

payments. This may result in a Fund having to reinvest its proceeds in lower yielding securities. Securities underlying mortgage- and asset-backed securities, which may include subprime mortgages, also may be subject to a higher degree of credit risk, valuation risk, and liquidity risk.

Foreign Debt Securities

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

Foreign Securities

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

High-Yield Securities

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

Illiquid and Restricted Securities

The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities may be sold privately, but are required to be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933 (the “Securities Act”). Illiquid securities have included securities that have not been registered under the

44

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Securities Act, securities that are otherwise not readily marketable, and repurchase agreements having a remaining maturity of longer than seven calendar days. Disposal of both illiquid and restricted securities may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted securities outstanding during the period ended April 30, 2018 are disclosed in the Notes to the Schedules of Investments.

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

Mortgage-Backed Securities

MBS often have stated maturities of up to thirty years when they are issued, depending upon the length of the mortgages underlying the securities. In practice however, unscheduled or early payments of principal and interest on the underlying mortgages may make the securities’ effective maturity shorter than this, and the prevailing interest rates may be higher or lower than the current yield of the Funds’ portfolio at the time resulting in reinvestment risk.

Rising or high interest rates may result in slower than expected principal payments which may tend to extend the duration of MBS, making them more volatile and more sensitive to changes in interest rates. This is known as extension risk.

MBS may have less potential for capital appreciation than comparable fixed-income securities due to the likelihood of increased prepayments of mortgages resulting from foreclosures or declining interest rates. These foreclosed or refinanced mortgages are paid off at face value (par) or less, causing a loss, particularly for any investor who may have purchased the security at a premium or a price above par. In such an environment, this risk limits the potential price appreciation of these securities.

Mortgage-Related and Other Asset-Backed Securities

The Balance Fund may invest in mortgage or other ABS. These securities may include mortgage instruments issued by U.S. government agencies (“agency mortgages”) or those issued by private entities (“non-agency mortgages”). Specific types of instruments may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities and other securities that directly or indirectly represent a participation in, or are secured by a payable from, mortgage loans on real property. The value of the Funds’ MBS may be affected by, among other things, changes or perceived changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the mortgage, or the quality of the underlying assets. The mortgages underlying the securities may default or decline in quality or value. Through its investments in MBS, a Fund has exposure to subprime loans, Alt-A loans and non-conforming loans as well as to the mortgage and credit markets generally. Underlying collateral related to subprime, Alt-A and non-conforming mortgage loans has become increasingly susceptible to defaults and declines in quality or value, especially in a declining residential real estate market. In addition, regulatory or tax changes may adversely affect the mortgage securities markets as a whole.

Municipal Securities

Municipal securities may include general obligation bonds, municipal lease obligations, resource recovery obligations, revenue obligations, anticipation notes, private activity bonds and municipal warrants. The Funds may invest in municipal securities that pay taxable or tax exempt interest. Municipal securities are subject to credit risk where a municipal issuer of a security might not make interest or principal payments on a security as they become due. Municipal securities are also subject to interest rate risk. A downgrade in the issuer’s or security’s credit rating can reduce the market value of the security. A number of municipalities may face severe financial hardship

45

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

making the possibility of their defaulting on obligations, and/or declaring bankruptcy where allowable, a risk to the value of municipal securities held by the Funds.

Other Investment Company Securities and Other Exchange-Traded Products

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

Privately Issued Mortgage-Backed Securities

MBS held by a Fund may be issued by private issuers including commercial banks, savings associations, mortgage companies, investment banking firms, finance companies and special purpose finance entities (called special purpose vehicles (“SPV”)) and other entities that acquire and package mortgage loans for resale as MBS. These privately issued non-agency MBS may offer higher yields than those issued by government agencies, but also may be subject to greater price changes than governmental issues. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to make timely payments on their loans. Alt-A loans refer to loans extended to borrowers who have incomplete documentation of income, assets, or other variables that are important to the credit underwriting processes. Non-conforming mortgages are loans that do not meet the standards that allow purchase by government-sponsored enterprises. MBS with exposure to subprime loans, Alt-A loans or non-conforming loans have had in many cases higher default rates than those loans that meet government underwriting requirements. The risk of non-payment is greater for MBS that are backed by mortgage pools that contain subprime, Alt-A and non-conforming loans, but a level of risk exists for all loans.

Unlike agency MBS issued or guaranteed by the U.S. government or a government-sponsored entity (e.g., Fannie Mae and Freddie Mac), MBS issued by private issuers do not have a government or government-sponsored entity guarantee, but may have credit enhancements provided by external entities such as banks or financial institutions or achieved through the structuring of the transaction itself. Examples of such credit support arising out of the structure of the transaction include the issue of senior and subordinated securities (e.g., the issuance of securities by an SPV in multiple classes or “tranches,” with one or more classes being senior to other subordinated classes as to the payment of principal and interest, with the result that defaults on the underlying mortgage loans are borne first by the holders of the subordinated class); creation of “reserve funds” (in which case cash or investments, sometimes funded from a portion of the payments on the underlying mortgage loans, are held in reserve against future losses); and “overcollateralization” (in which case the scheduled payments on, or the principal amount of, the underlying mortgage loans exceeds that required to make payment on the securities and pay any servicing or other fees). However, there can be no guarantee that credit enhancements, if any, will be sufficient to prevent losses in the event of defaults on the underlying mortgage loans. In addition, MBS that are issued by private issuers are not subject to the underwriting requirements for the underlying mortgages that are applicable to those MBS that have a government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private MBS may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics than government or government-sponsored MBS and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon rates and maturities of the underlying mortgage loans in a private-label MBS pool may vary to a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage loans.

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American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Privately issued MBS are not traded on an exchange and there may be a limited market for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors. Without an active trading market, MBS held in the Funds’ portfolio may be particularly difficult to value because of the complexities involved in assessing the value of the underlying mortgage loans.

Publicly Traded Partnerships; Master Limited Partnerships

The Funds may invest in publicly traded partnerships such as master limited partnerships (“MLPs”). MLPs issue units that are registered with the SEC and are freely tradable on a securities exchange or in the OTC market. An MLP may have one or more general partners, who conduct the business, and one or more limited partners, who contribute capital. An MLP also may be an entity similar to a limited partnership, such as a limited liability company, which has a manager or managing member and non-managing members (who are like limited partners). The general partner or partners are jointly and severally responsible for the liabilities of the MLP. A Fund invests as a limited partner and normally would not be liable for the debts of an MLP beyond the amount the Fund has invested therein but it would not be shielded to the same extent that a shareholder of a corporation would be. In certain instances, creditors of an MLP would have the right to seek a return of capital that had been distributed to a limited partner. The right of an MLP’s creditors would continue even after a Fund had sold its investment in the partnership. MLPs typically invest in real estate and oil and gas equipment leasing assets, but they also finance entertainment, research and development, and other projects.

Real Estate Investment Trusts

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

U.S. Government Agency Securities

U.S. Government agency securities are issued or guaranteed by the U.S. Government or its agencies or instrumentalities. Some obligations issued by U.S. Government agencies and instrumentalities are supported by the full faith and credit of the U.S. Treasury; others by the right of the issuer to borrow from the U.S. Treasury; others by discretionary authority of the U.S. Government to purchase certain obligations of the agency or instrumentality; and others only by the credit of the agency or instrumentality. U.S. Government securities bear fixed, floating or variable rates of interest. While the U.S. Government currently provides financial support to certain U.S. Government-sponsored agencies or instrumentalities, no assurance can be given that it will always do so, since it is not so obligated by law. U.S. Government securities include U.S. Treasury bills, notes and bonds, Federal Home Loan Bank (“FHLB”) obligations, Federal Farm Credit Bank (“FFCB”) obligations, U.S. Government agency obligations and repurchase agreements secured thereby. U.S. Government agency securities are subject to credit risk and interest rate risk.

U.S. Treasury Obligations

U.S. Treasury obligations include bills (initial maturities of one year or less), notes (initial maturities between two and ten years), and bonds (initial maturities over ten years) issued by the U.S. Treasury, Separately Traded Registered Interest and Principal component parts of such obligations, known as “STRIPS”, and inflation-indexed securities. The prices of these securities (like all debt securities) change between issuance and maturity in response to fluctuating market interest rates and credit ratings. The principal and interest components of selected securities are traded independently under the STRIPS program. Under the STRIPS program, the principal and

47

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

interest components are individually numbered and separately issued by the U.S. Treasury at the request of depository financial institutions, which then trade the component parts independently.

Variable or Floating Rate Obligations

The interest rates payable on certain fixed-income securities in which the Funds may invest are not fixed and may fluctuate based upon changes in market rates. A variable rate obligation has an interest rate which is adjusted at predesignated periods in response to changes in the market rate of interest on which the interest rate is based. Variable and floating rate obligations are less effective than fixed rate instruments at locking in a particular yield. Nevertheless, such obligations may fluctuate in value in response to interest rate changes if there is a delay between changes in market interest rates and the interest reset date for the obligation, or for other reasons.

5.  Financial Derivative Instruments

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

Futures Contracts

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

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

During the period ended April 30, 2018, the Funds entered into future contracts primarily for exposing cash to markets.

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

Average Futures Contracts Outstanding
Fund	Period Ended April 30, 2018
Balanced		43
Mid-Cap Value		190

48

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

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

Balanced Fund

Fair values of financial instruments on the Statements of Assets and Liabilities as of April 30, 2018:
	Derivatives not accounted for as hedging instruments
Liabilities:	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Payable for variation margin from open futures contracts(2)		$	–		$	–		$	–		$	–		$	(59,918	)		$	(59,918	)
The effect of financial derivative instruments on the Statements of Operations as of April 30, 2018:
	Derivatives not accounted for as hedging instruments
Realized gain (loss) from derivatives recognized as a result of operations	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Futures contracts		$	–		$	–		$	–		$	–		$	134,900			$	134,900
Net change in unrealized appreciation (depreciation) of derivatives recognized as a result from operations:	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Futures contracts		$	–		$	–		$	–		$	–		$	(157,597	)		$	(157,597	)

Mid-Cap Value Fund

Fair values of financial instruments on the Statements of Assets and Liabilities as of April 30, 2018:
	Derivatives not accounted for as hedging instruments
Liabilities:	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Payable for variation margin from open futures contracts(2)		$	–		$	–		$	–		$	–		$	(926,600	)		$	(926,600	)
The effect of financial derivative instruments on the Statements of Operations as of April 30, 2018:
	Derivatives not accounted for as hedging instruments
Realized gain (loss) from derivatives recognized as a result of operations	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Futures contracts		$	–		$	–		$	–		$	–		$	2,236,679			$	2,236,679
Net change in unrealized appreciation (depreciation) of derivatives recognized as a result from operations:	Credit contracts			Foreign exchange contracts			Commodity contracts			Interest rate contracts			Equity contracts				Total
Futures contracts		$	–		$	–		$	–		$	–		$	(2,187,738	)		$	(2,187,738	)

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

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

6.  Principal Risks

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

49

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Asset-Backed and Mortgage Related Securities Risk

Investments in asset-backed and mortgage related securities, are subject to market risks for fixed-income securities which include, but are not limited to, credit risk, extension risk, interest rate risk and prepayment risk. A decline in the credit quality of the issuers of asset-backed and mortgage related securities or instability in the markets for such securities may affect the value and liquidity of such securities, which could result in losses to the Funds.

Credit Risk

The Funds are subject to the risk that the issuer or guarantor of a debt security, or the counterparty to a derivatives contract or a loan, will fail to make timely payment of interest or principal or otherwise honor its obligations or default completely.

Equity Investment Risk

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

Foreign Investing Risk

The Funds may invest in securities issued by foreign companies through ADRs and U.S. dollar-denominated foreign stocks traded on U.S. exchanges. The Funds may also invest in local currency investments. ADRs are subject to many of the risks inherent in currency fluctuations and political and financial instability in the home country of a particular ADR or foreign stock. Non-U.S. investments carry potential risks not associated with U.S. investments. Such risks include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity and greater volatility, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased price volatility, (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets.

Futures Contracts Risk

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

50

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Illiquid and Restricted Securities Risk

Securities not registered in the U.S. under the Securities Act of 1933, as amended (the “Securities Act”), including Rule 144A securities, are restricted as to their resale. Such securities may not be listed on an exchange and may have no active trading market. They may be more difficult to purchase or sell at an advantageous time or price because such securities may not be readily marketable in broad public markets. The Funds may not be able to sell a restricted security when the sub-advisor considers it desirable to do so and/or may have to sell the security at a lower price than the Funds believe is its fair market value. In addition, transaction costs may be higher for restricted securities and the Funds may receive only limited information regarding the issuer of a restricted security. The Funds may have to bear the expense of registering restricted securities for resale and the risk of substantial delays in effecting the registration.

Interest Rate Risk

The Funds are subject to the risk that the market value of fixed-income securities or derivatives it holds, particularly mortgage backed and other asset backed securities, will decline due to rising interest rates. Generally, the value of investments with interest rate risk, such as fixed-income securities, will move in the opposite direction to movements in interest rates. The Federal Reserve raised the federal funds rate several times since December 2015 and has signaled additional increases in the near future. Interest rates may rise, perhaps significantly and/or rapidly, potentially resulting in substantial losses to the Funds. The prices of fixed-income securities are also affected by their duration. Fixed-income securities with longer duration generally have greater sensitivity to changes in interest rates. An increase in interest rates can impact markets broadly as well. Some investors buy securities and derivatives with borrowed money; an increase in interest rates can cause a decline in those markets.

Liquidity Risk

The Funds are susceptible to the risk that certain fixed-income investments, may have limited marketability or be subject to restrictions on sale, and may be difficult or impossible to purchase or sell at favorable times or prices. The Funds could lose money if they are unable to dispose of an investment at a time that is most beneficial to the Funds. The Funds may be required to dispose of investments at unfavorable times or prices to satisfy obligations, which may result in losses or may be costly to the Funds. For example, the Funds may be forced to sell certain investments at unfavorable prices to meet redemption requests or other cash needs. Judgment plays a greater role in pricing illiquid investments than in investments with more active markets.

Market Risk

Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in fixed income instruments experiencing unusual liquidity issues, increased price volatility and, in some cases, credit downgrades and increased likelihood of default. These events have reduced the willingness and ability of some lenders to extend credit, and have made it more difficult for some borrowers to obtain financing on attractive terms, if at all. In addition, global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely impact issuers in a different country or region. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasi-governmental organizations.

In addition, political events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree. High public debt in the U.S. and other countries creates ongoing systemic and market risks and policymaking uncertainty. Because the impact on the markets has been widespread, it may be difficult to identify both risks and opportunities using past models of the interplay of market forces, or to predict the duration of these market conditions. Interest rates have been unusually low in recent years in the U.S. and abroad. Because there is little

51

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

precedent for this situation, it is difficult to predict the impact on various markets of a significant rate increase, whether brought about by U.S. policy makers or by dislocations in world markets. In addition, there is a risk that the prices of goods and services in the U.S. and many foreign economies may decline over time, known as deflation (the opposite of inflation). Deflation may have an adverse effect on stock prices and creditworthiness and may make defaults on debt more likely.

Mortgage-Backed and Mortgage Related Securities Risk

Certain mortgage-backed and mortgage related securities may include securities backed by pools of loans made to “subprime” borrowers or borrowers with blemished credit histories; the risk of defaults is generally higher in the case of mortgage pools that include such subprime mortgages. A security backed by the U.S. Treasury or the full faith and credit of the United States is guaranteed by the applicable entity only as to the timely payment of interest and principal when held to maturity. The market prices for such securities are not guaranteed and will fluctuate. Additionally, circumstances could arise that would prevent the payment of interest or principal. This could result in losses to the Funds. Securities held by the Funds that are issued by government-sponsored enterprises, such as the Fannie Mae, Freddie Mac, and FHLB are not guaranteed by the U.S. Treasury, are not backed by the full faith and credit of the U.S. Government and no assurance can be given that the U.S. Government will provide financial support. U.S. Government securities and securities of government sponsored enterprises are also subject to credit risk, interest rate risk and market risk. The Funds’ investment in CMOs may offer a higher yield than U.S. government securities, but they may also be subject to greater price fluctuation and credit risk. The cash flows and yields on interest only (“IO”) and principal only (“PO”) are extremely sensitive to the rate of principal payments (including prepayments) on the underlying mortgage loans or mortgage-backed securities. A rapid rate of principal payments may adversely affect the yield to maturity of IOs. A slow rate of principal payments may adversely affect the yield to maturity of POs. Inverse IOs and POs, which are fixed-income securities with a floating or variable rate of interest, may exhibit substantially greater price volatility than fixed rate obligations having similar credit quality, redemption provisions and maturity.

Multiple Sub-Advisor Risk

The Manager may allocate the Funds’ assets among multiple sub-advisors, each of which is responsible for investing its allocated portion of the Funds’ assets. To a significant extent, the Funds’ performance will depend on the success of the Manager in allocating the Funds’ assets to sub-advisors and its selection and oversight of the sub-advisors. Because each sub-adviser manages its allocated portion of the Funds independently from another sub-adviser, the same security may be held in different portions of the Funds, or may be acquired for one portion of the Funds at a time when a sub-adviser to another portion deems it appropriate to dispose of the security from that other portion, resulting in higher expenses without accomplishing any net result in the Funds’ holdings. Similarly, under some market conditions, one sub-adviser may believe that temporary, defensive investments in short-term instruments or cash are appropriate when another sub-adviser believes continued exposure to the equity or debt markets is appropriate for its allocated portion of the Funds. Because each sub-adviser directs the trading for its own portion of the Funds, and does not aggregate its transactions with those of the other sub-advisors, the Funds may incur higher brokerage costs than would be the case if a single sub-adviser were managing the entire Fund. In addition, while the Manager seeks to allocate the Funds’ assets among the Funds’ sub-advisors in a manner that it believes is consistent with achieving the Funds’ investment objective(s), the Manager may be subject to potential conflicts of interest in allocating the Funds’ assets among sub-advisors.

Other Investment Companies Risk

The Funds may invest in shares of other registered investment companies, including ETFs and money market funds that are advised by the Manager. To the extent that the Funds invest in shares of other registered investment companies, the Funds will indirectly bear the fees and expenses charged by those investment companies in addition to the Funds’ direct fees and expenses and will be subject to the risks associated with investments in those companies.

52

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

Prepayment and Extension Risk

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

Redemption Risk

The Funds may experience periods of high levels of redemptions that could cause the Funds to sell assets at inopportune times or at a loss or depressed value. The sale of assets to meet redemption requests may create net capital gains, which could cause the Funds to have to distribute substantial capital gains.

Sector Risk

Sector risk is the risk associated with a Fund holding a significant amount of investments in similar businesses, which would be similarly affected by particular economic or market events, which may, in certain circumstances, cause the value of the equity and debt securities of companies in a particular sector of the market to change. To the extent a Fund has substantial holdings within a particular sector, the risks to a Fund associated with that sector increase.

To the extent a Fund invests in the financial services sector, the value of the Fund’s shares may be particularly vulnerable to factors affecting that sector, such as the availability and cost of capital funds, changes in interest rates, the rate of corporate and consumer debt defaults, extensive government regulation and price competition. The value of a Fund’s shares could experience significantly greater volatility than investment companies investing more broadly.

Securities Lending Risk

To the extent the Funds lends its securities, it may be subject to the following risks; i) borrowers of the Funds’ securities typically provide collateral in the form of cash that is reinvested in securities, ii) the securities in which the collateral is invested may not perform sufficiently to cover the return collateral payments owed to borrowers, iii) delays may occur in the recovery of securities from borrowers, which could interfere with the Funds’ ability to vote proxies or to settle transactions, and iv) there is the risk of possible loss of rights in the collateral should the borrower fail financially.

U.S. Government Securities and Government-Sponsored Enterprises Risk

A security backed by the U.S. Treasury or the full faith and credit of the United States is guaranteed by the applicable entity only as to the timely payment of interest and principal when held to maturity. The market prices for such securities are not guaranteed and will fluctuate. Securities held by the Fund that are issued by government-sponsored enterprises, such as the Fannie Mae, Freddie Mac, FHLB, FFCB, and the Tennessee Valley Authority are not guaranteed by the U.S. Treasury and are not backed by the full faith and credit of the U.S. Government and no assurance can be given that the U.S. Government will provide financial support if these organizations do not have the funds to meet future payment obligations. U.S. Government securities and securities of government sponsored entities are also subject to credit risk, interest rate risk and market risk.

Variable and Floating Rate Securities Risk

The interest rates payable on variable and floating-rate securities are not fixed and may fluctuate based upon changes in market rates. The interest rate on a floating rate security is a variable rate which is tied to

53

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

another interest rate, such as a money-market index or Treasury bill rate. Variable and floating rate securities are subject to interest rate risk and credit risk.

As short-term interest rates decline, interest payable on floating-rate securities typically decreases. Alternatively, during periods of rising interest rates, interest payable on floating-rate securities typically increases. Changes in the interest rates of floating-rate securities may lag behind changes in market rates or may have limits on the maximum rate change for a given period of time. The value of floating-rate securities may decline if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline.

Offsetting Assets and Liabilities

The Funds are parties to enforceable master netting agreements between brokers and counterparties which provide for the right to offset under certain circumstances. The Funds employ multiple money managers and counterparties and have elected not to offset qualifying financial and derivative instruments on the Statements of Assets and Liabilities, as such all financial and derivative instruments are presented on a gross basis. The impacts of netting arrangements that provide the right to offset are detailed below. The net amount represents the net receivable or payable that would be due from or to the counterparty in the event of default. Exposure from borrowings and other financing agreements such as repurchase agreements can only be netted across transactions governed by the same Master Agreement with the same legal entity. All amounts reported below represent the balance as of the report date, April 30, 2018.

Balanced Fund

Offsetting of Financial and Derivative Assets as of April 30, 2018:
	Assets		Liabilities
Futures Contracts	$	-	$	59,918
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	-	$	59,918
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)	$	-	$	(59,918	)

	Remaining Contractual Maturity of the Agreements As of April 30, 2018
	Overnight and Continuous		<30 days		Between 30 & 90 days		>90 days		Total
Securities Lending Transactions
Common Stocks	$	1,020,973	$	-	$	-	$	-	$	1,020,973
Total Borrowings	$	1,020,973	$	-	$	-	$	-	$	1,020,973
Gross amount of recognized liabilities for securities lending transactions									$	1,020,973

Mid-Cap Value Fund

Offsetting of Financial and Derivative Assets as of April 30, 2018:
	Assets		Liabilities
Futures Contracts	$	-	$	926,600
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	-	$	926,600
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)	$	-	$	(926,600	)

	Remaining Contractual Maturity of the Agreements As of April 30, 2018
	Overnight and Continuous		<30 days		Between 30 & 90 days		>90 days		Total
Securities Lending Transactions
Common Stocks	$	25,546,272	$	-	$	-	$	-	$	25,546,272
Total Borrowings	$	25,546,272	$	-	$	-	$	-	$	25,546,272
Gross amount of recognized liabilities for securities lending transactions									$	25,546,272

54

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

7.  Federal Income and Excise Taxes

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

The Funds do not have any unrecorded tax liabilities in the accompanying financial statements. Each of the tax years in the four year period ended October 31, 2017 remain subject to examination by the Internal Revenue Service. If applicable, the Funds recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other expenses” on the Statements of Operations.

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

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

As of April 30, 2018 the tax cost for each Fund and their respective gross unrealized appreciation (depreciation) were as follows:

Fund	Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Balanced	$	276,493,007	$	56,997,030	$	(9,342,477	)	$	47,654,553
Mid-Cap Value		779,598,267		99,966,456		(35,260,167	)		64,706,289

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

As of October 31, 2017, the Funds did not have any capital loss carryforwards.

8.  Investment Transactions

The aggregate cost of purchases and proceeds from sales and maturities of investments, other than short-term obligations, for the period ended April 30, 2018 were as follows:

Fund	Purchases (non-U.S. Government Securities)		Purchases of U.S. Government Securities		Sales (non-U.S. Government Securities)		Sales of U.S. Government Securities
Balanced	$	33,290,324	$	7,139,040	$	59,405,652	$	8,911,555
Mid-Cap Value		286,365,451		-		116,916,135		-

A summary of the Funds’ transactions in the USG Select Fund for the period ended April 30, 2018 were as follows:

Fund	Type of Transaction	October 31, 2017 Shares/Fair Value		Purchases		Sales		April 30, 2018 Shares/Fair Value		Dividend Income
Balanced	Direct	$	7,863,253	$	61,993,039	$	62,181,320	$	7,674,972	$	36,156
Balanced	Securities Lending		3,085,328		40,112,799		42,177,154		1,020,973		N/A
Mid-Cap Value	Direct		32,552,471		297,992,861		293,738,389		36,806,943		283,770
Mid-Cap Value	Securities Lending		19,270,065		126,283,612		120,007,405		25,546,272		N/A

55

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

9.  Securities Lending

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

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

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

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

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

As of April 30, 2018, the value of outstanding securities on loan and the value of collateral were as follows:

Fund	Market Value of Securities on Loan		Cash Collateral Received		Non-Cash Collateral Received		Total Collateral Received
Balanced	$	985,712	$	1,020,973	$	–	$	1,020,973
Mid-Cap Value		24,558,560		25,546,272		–		25,546,272

Cash collateral is listed on the Funds’ Schedules of Investments and is shown on the Statements of Assets and Liabilities. Income earned on these investments is included in “Income derived from securities lending” on the Statements of Operations.

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

56

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

10.  Borrowing Arrangements

Effective November 16, 2017, the Funds, along with certain other funds managed by the Manager (“Participating Funds”), entered into a committed revolving line of credit (the “Committed Line”) agreement with State Street Bank and Trust Company (the “Bank”) to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Committed Line is $50 million with interest at a rate equal to the higher of (a) one-month London Inter-Bank Offered Rate (“LIBOR”) plus 1.25% per annum or (b) the Federal Funds rate plus 1.25% per annum on amounts borrowed. Each of the Participating Funds will pay a commitment fee at a rate of 0.25% per annum on the unused portion of the Committed Line amount. The Committed Line expires November 15, 2018, unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

Effective November 16, 2017, the Funds, along with certain other Participating Funds managed by the Manager, entered into an uncommitted discretionary demand revolving line of credit (the “Uncommitted Line”) agreement with the Bank to be used to facilitate portfolio liquidity. The maximum borrowing amount under the Uncommitted Line is $50 million with interest at a rate equal to the higher of (a) one-month LIBOR plus 1.25% per annum or (b) the Federal Funds rate. The Uncommitted Line expires November 15, 2018 unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

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

During the period ended April 30, 2018, the Funds did not utilize this facility.

11.  Capital Share Transactions

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

	Institutional Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Balanced Fund	Shares			Amount			Shares			Amount
Shares sold		389,351		$	6,517,481			1,092,787		$	18,080,161
Reinvestment of dividends		331,965			5,569,260			238,615			3,910,236
Shares redeemed		(1,273,657	)		(21,621,857	)		(28,034,177	)		(458,858,477	)
Net (decrease) in shares outstanding		(552,341	)	$	(9,535,116	)		(26,702,775	)	$	(436,868,080	)
	Y Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Balanced Fund	Shares			Amount			Shares			Amount
Shares sold		532,320		$	9,118,075			3,930,687		$	64,515,384
Reinvestment of dividends		227,854			3,842,180			65,834			1,098,461
Shares redeemed		(561,134	)		(9,562,659	)		(2,147,617	)		(35,745,768	)
Net increase in shares outstanding		199,040		$	3,397,596			1,848,904		$	29,868,077
	Investor Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Balanced Fund	Shares			Amount			Shares			Amount
Shares sold		429,879		$	6,491,858			1,891,239		$	27,893,209
Reinvestment of dividends		565,005			8,436,406			183,821			2,729,041
Shares redeemed		(1,077,636	)		(16,195,594	)		(3,351,461	)		(49,631,206	)
Net (decrease) in shares outstanding		(82,752	)	$	(1,267,330	)		(1,276,401	)	$	(19,008,956	)

57

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

	Advisor Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Balanced Fund	Shares			Amount			Shares			Amount
Shares sold		41,749		$	667,875			105,859		$	1,651,482
Reinvestment of dividends		44,791			709,913			12,537			196,603
Shares redeemed		(315,333	)		(4,998,032	)		(183,384	)		(2,863,636	)
Net (decrease) in shares outstanding		(228,793	)	$	(3,620,244	)		(64,988	)	$	(1,015,551	)
	A Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Balanced Fund	Shares			Amount			Shares			Amount
Shares sold		106,098		$	1,600,973			410,539		$	6,059,817
Reinvestment of dividends		98,483			1,468,449			31,357			464,996
Shares redeemed		(195,546	)		(2,959,671	)		(843,857	)		(12,512,241	)
Net increase (decrease) in shares outstanding		9,035		$	109,751			(401,961	)	$	(5,987,428	)
	C Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Balanced Fund	Shares			Amount			Shares			Amount
Shares sold		161,029		$	2,457,065			511,750		$	7,628,600
Reinvestment of dividends		174,747			2,639,768			33,550			501,998
Shares redeemed		(382,645	)		(5,860,589	)		(776,384	)		(11,594,157	)
Net (decrease) in shares outstanding		(46,869	)	$	(763,756	)		(231,084	)	$	(3,463,559	)
	Institutional Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Mid-Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		3,041,802		$	52,348,801			5,954,710		$	95,148,198
Reinvestment of dividends		526,390			9,164,443			200,907			3,102,004
Shares redeemed		(2,374,767	)		(41,187,152	)		(4,676,013	)		(74,643,061	)
Net increase in shares outstanding		1,193,425		$	20,326,092			1,479,604		$	23,607,141
	Y Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Mid-Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		1,268,801		$	21,731,809			1,882,597		$	30,182,084
Reinvestment of dividends		197,830			3,416,518			68,733			1,052,987
Shares redeemed		(691,286	)		(11,926,972	)		(1,053,861	)		(16,770,607	)
Net increase in shares outstanding		775,345		$	13,221,355			897,469		$	14,464,464
	Investor Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Mid-Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		10,628,064		$	191,529,131			2,951,825		$	47,658,072
Reinvestment of dividends		526,115			9,254,355			199,673			3,114,890
Shares redeemed		(2,726,881	)		(47,672,293	)		(4,583,694	)		(73,830,629	)
Net increase (decrease) in shares outstanding		8,427,298		$	153,111,193			(1,432,196	)	$	(23,057,667	)

58

American Beacon Funds^SM

Notes to Financial Statements

April 30, 2018 (Unaudited)

	Advisor Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Mid-Cap Value Fund	Shares			Amount			Shares			Amount
		73,734		$	1,227,607			81,445		$	1,272,473
Reinvestment of dividends		5,543			94,728			4,212			63,730
Shares redeemed		(51,592	)		(877,700	)		(350,490	)		(5,453,538	)
Net increase (decrease) in shares outstanding		27,685		$	444,635			(264,833	)	$	(4,117,335	)
	A Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Mid-Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		256,070		$	4,307,729			318,235		$	4,979,042
Reinvestment of dividends		25,397			433,278			14,503			219,286
Shares redeemed		(473,593	)		(8,016,652	)		(676,186	)		(10,691,000	)
Net (decrease) in shares outstanding		(192,126	)	$	(3,275,645	)		(343,448	)	$	(5,492,672	)
	C Class
	Six Months Ended April 30, 2018						Year Ended October 31, 2017
	(unaudited)
Mid-Cap Value Fund	Shares			Amount			Shares			Amount
Shares sold		70,560		$	1,151,985			60,211		$	917,397
Reinvestment of dividends		11,018			182,135			2,030			29,866
Shares redeemed		(42,742	)		(704,407	)		(116,353	)		(1,771,416	)
Net increase (decrease) in shares outstanding		38,836		$	629,713			(54,112	)	$	(824,153	)
	R6 Class
	February 28, 2018A to April 30, 2018
	(unaudited)
Mid-Cap Value Fund	Shares			Amount
Shares sold		5,903		$	100,000
Net (decrease) in shares outstanding		5,903		$	100,000

^A Commencement of operations.

12.  Subsequent Events

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

59

American Beacon Balanced Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Institutional ClassA
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	17.30		$	15.26		$	15.79		$	16.79		$	16.31		$	14.27
Income (loss) from investment operations:
Net investment income		0.14			0.36			0.27			0.32			0.38			0.30
Net gains (losses) on investments (both realized and unrealized)		0.17			2.04			0.20			(0.32	)		1.35			2.35
Total income from investment operations		0.31			2.40			0.47			–			1.73			2.65
Less distributions:
Dividends from net investment income		(0.32	)		(0.36	)		(0.25	)		(0.22	)		(0.42	)		(0.30	)
Distributions from net realized gains		(0.80	)		–			(0.75	)		(0.78	)		(0.83	)		(0.31	)
Total distributions		(1.12	)		(0.36	)		(1.00	)		(1.00	)		(1.25	)		(0.61	)
Net asset value, end of period	$	16.49		$	17.30		$	15.26		$	15.79		$	16.79		$	16.31
Total returnB		1.66	%C		15.82	%		3.30	%		(0.07	)%		11.15	%		19.04	%
Ratios and supplemental data:
Net assets, end of period	$	74,831,833		$	88,015,702		$	485,231,068		$	99,173,943		$	74,422,347		$	60,916,035
Ratios to average net assets:
Expenses, before reimbursements		0.64	%D		0.59	%		0.62	%		0.58	%		0.58	%		0.60	%
Expenses, net of reimbursements		0.64	%D		0.59	%		0.62	%		0.58	%		0.58	%		0.60	%
Net investment income, before expense reimbursements		1.86	%D		1.80	%		1.90	%		1.83	%		2.24	%		1.86	%
Net investment income, net of reimbursements		1.86	%D		1.80	%		1.90	%		1.83	%		2.24	%		1.86	%
Portfolio turnover rate		13	%C		32	%		16	%		62	%		34	%		56	%

^A  On May 31, 2016, the AMR Class closed and the assets were merged into the Institutional Class.

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

^C  Not annualized.

^D  Annualized.

See accompanying notes

60

American Beacon Balanced Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Y Class
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	17.39		$	15.30		$	15.84		$	16.83		$	16.37		$	14.32
Income (loss) from investment operations:
Net investment income		0.16			0.24			0.30			0.30			0.40			0.39
Net gains (losses) on investments (both realized and unrealized)		0.15			2.20			0.13			(0.30	)		1.31			2.26
Total income from investment operations		0.31			2.44			0.43			-			1.71			2.65
Less distributions:
Dividends from net investment income		(0.31	)		(0.35	)		(0.22	)		(0.21	)		(0.42	)		(0.29	)
Distributions from net realized gains		(0.80	)		-			(0.75	)		(0.78	)		(0.83	)		(0.31	)
Total distributions		(1.11	)		(0.35	)		(0.97	)		(0.99	)		(1.25	)		(0.60	)
Net asset value, end of period	$	16.59		$	17.39		$	15.30		$	15.84		$	16.83		$	16.37
Total returnA		1.68	%B		16.05	%		3.06	%		(0.07	)%		10.98	%		18.97	%
Ratios and supplemental data:
Net assets, end of period	$	65,258,364		$	64,926,394		$	28,843,268		$	39,151,318		$	36,113,608		$	7,262,894
Ratios to average net assets:
Expenses, before reimbursements or recoupments		0.71	%C		0.68	%		0.72	%		0.66	%		0.67	%		0.68	%
Expenses, net of reimbursements or recoupments		0.71	%C		0.68	%		0.72	%		0.66	%		0.68	%		0.70	%
Net investment income, before expense reimbursements or recoupments		1.78	%C		1.67	%		1.95	%		1.75	%		2.01	%		1.71	%
Net investment income, net of reimbursements or recoupments		1.78	%C		1.67	%		1.95	%		1.75	%		2.01	%		1.69	%
Portfolio turnover rate		13	%B		32	%		16	%		62	%		34	%		56	%

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

^B  Not annualized.

^C  Annualized.

See accompanying notes

61

American Beacon Balanced Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Investor Class
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	15.51		$	13.71		$	14.30		$	15.31		$	14.98		$	13.16
Income (loss) from investment operations:
Net investment income		0.11			0.15			0.18			0.22			0.42			0.26
Net gains (losses) on investments (both realized and unrealized)		0.15			1.96			0.18			(0.26	)		1.11			2.13
Total income (loss) from investment operations		0.26			2.11			0.36			(0.04	)		1.53			2.39
Less distributions:
Dividends from net investment income		(0.29	)		(0.31	)		(0.20	)		(0.19	)		(0.37	)		(0.26	)
Distributions from net realized gains		(0.80	)		-			(0.75	)		(0.78	)		(0.83	)		(0.31	)
Total distributions		(1.09	)		(0.31	)		(0.95	)		(0.97	)		(1.20	)		(0.57	)
Net asset value, end of period	$	14.68		$	15.51		$	13.71		$	14.30		$	15.31		$	14.98
Total returnA		1.59	%B		15.52	%		2.85	%		(0.35	)%		10.75	%		18.65	%
Ratios and supplemental data:
Net assets, end of period	$	116,294,718		$	124,143,894		$	127,235,433		$	155,757,561		$	165,808,020		$	109,336,889
Ratios to average net assets:
Expenses, before reimbursements		0.92	%C		0.89	%		0.95	%		0.91	%		0.92	%		0.92	%
Expenses, net of reimbursements		0.92	%C		0.89	%		0.95	%		0.91	%		0.92	%		0.92	%
Net investment income, before expense reimbursements		1.57	%C		1.48	%		1.72	%		1.51	%		1.84	%		1.62	%
Net investment income, net of reimbursements		1.57	%C		1.48	%		1.72	%		1.51	%		1.84	%		1.62	%
Portfolio turnover rate		13	%B		32	%		16	%		62	%		34	%		56	%

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

^B  Not annualized.

^C  Annualized.

See accompanying notes

62

American Beacon Balanced Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Advisor Class
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	16.38		$	14.46		$	15.02		$	16.04		$	15.65		$	13.73
Income (loss) from investment operations:
Net investment income (loss)		0.05			0.21			0.24			0.22			0.18			(0.12	)
Net gains (losses) on investments (both realized and unrealized)		0.21			1.99			0.12			(0.29	)		1.39			2.60
Total income (loss) from investment operations		0.26			2.20			0.36			(0.07	)		1.57			2.48
Less distributions:
Dividends from net investment income		(0.27	)		(0.28	)		(0.17	)		(0.17	)		(0.35	)		(0.25	)
Distributions from net realized gains		(0.80	)		-			(0.75	)		(0.78	)		(0.83	)		(0.31	)
Total distributions		(1.07	)		(0.28	)		(0.92	)		(0.95	)		(1.18	)		(0.56	)
Net asset value, end of period	$	15.57		$	16.38		$	14.46		$	15.02		$	16.04		$	15.65
Total returnA		1.47	%B		15.31	%		2.71	%		(0.58	)%		10.58	%		18.52	%
Ratios and supplemental data:
Net assets, end of period	$	6,842,344		$	10,944,675		$	10,603,004		$	13,510,138		$	14,705,747		$	6,352,890
Ratios to average net assets:
Expenses, before reimbursements		1.13	%C		1.08	%		1.12	%		1.06	%		1.07	%		1.07	%
Expenses, net of reimbursements		1.13	%C		1.08	%		1.12	%		1.06	%		1.07	%		1.07	%
Net investment income, before expense reimbursements		1.38	%C		1.29	%		1.55	%		1.35	%		1.75	%		1.32	%
Net investment income, net of reimbursements		1.38	%C		1.29	%		1.55	%		1.35	%		1.75	%		1.32	%
Portfolio turnover rate		13	%B		32	%		16	%		62	%		34	%		56	%

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

^B  Not annualized.

^C  Annualized.

See accompanying notes

63

American Beacon Balanced Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	A Class
	Six Months Ended April 30,			Year Ended October 31,
		2018			2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	15.48		$	13.69		$	14.27		$	15.29		$	14.97		$	13.16
Income (loss) from investment operations:
Net investment income		0.14			0.16			0.21			0.23			0.33			0.22
Net gains (losses) on investments (both realized and unrealized)		0.14			1.93			0.15			(0.29	)		1.18			2.14
Total income (loss) from investment operations		0.28			2.09			0.36			(0.06	)		1.51			2.36
Less distributions:
Dividends from net investment income		(0.30	)		(0.30	)		(0.19	)		(0.18	)		(0.36	)		(0.24	)
Distributions from net realized gains		(0.80	)		-			(0.75	)		(0.78	)		(0.83	)		(0.31	)
Total distributions		(1.10	)		(0.30	)		(0.94	)		(0.96	)		(1.19	)		(0.55	)
Net asset value, end of period	$	14.66		$	15.48		$	13.69		$	14.27		$	15.29		$	14.97
Total returnA		1.71	%B		15.36	%		2.84	%		(0.48	)%		10.67	%		18.45	%
Ratios and supplemental data:
Net assets, end of period	$	20,896,532		$	21,934,880		$	24,892,096		$	29,074,120		$	25,578,944		$	6,284,539
Ratios to average net assets:
Expenses, before reimbursements or recoupments		0.77	%C		0.99	%		1.02	%		0.97	%		1.02	%		1.10	%
Expenses, net of reimbursements or recoupments		0.77	%C		0.99	%		1.02	%		0.97	%		1.04	%		1.10	%
Net investment income, before expense reimbursements or recoupments		1.72	%C		1.39	%		1.64	%		1.44	%		1.68	%		1.31	%
Net investment income, net of reimbursements or recoupments		1.72	%C		1.39	%		1.64	%		1.44	%		1.67	%		1.30	%
Portfolio turnover rate		13	%B		32	%		16	%		62	%		34	%		56	%

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

^B  Not annualized.

^C  Annualized.

See accompanying notes

64

American Beacon Balanced Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	C Class
	Six Months Ended April 30,			Year Ended October 31,
		2018			2017			2016			2015			2014			2013
	(unaudited)
Net asset value, beginning of period	$	15.64		$	13.83		$	14.43		$	15.47		$	15.13		$	13.33
Income (loss) from investment operations:
Net investment income		0.08			0.08			0.12			0.14			0.21			0.17
Net gains (losses) on investments (both realized and unrealized)		0.15			1.92			0.13			(0.29	)		1.20			2.11
Total income (loss) from investment operations		0.23			2.00			0.25			(0.15	)		1.41			2.28
Less distributions:
Dividends from net investment income		(0.25	)		(0.19	)		(0.10	)		(0.11	)		(0.24	)		(0.17	)
Distributions from net realized gains		(0.80	)		-			(0.75	)		(0.78	)		(0.83	)		(0.31	)
Total distributions		(1.05	)		(0.19	)		(0.85	)		(0.89	)		(1.07	)		(0.48	)
Net asset value, end of period	$	14.82		$	15.64		$	13.83		$	14.43		$	15.47		$	15.13
Total returnA		1.32	%B		14.50	%		2.03	%		(1.14	)%		9.80	%		17.50	%
Ratios and supplemental data:
Net assets, end of period	$	39,647,649		$	42,575,983		$	40,827,570		$	45,641,648		$	32,045,404		$	11,573,900
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.46	%C		1.73	%		1.77	%		1.72	%		1.78	%		1.84	%
Expenses, net of reimbursements or recoupments		1.46	%C		1.73	%		1.77	%		1.72	%		1.79	%		1.85	%
Net investment income, before expense reimbursements or recoupments		1.03	%C		0.63	%		0.89	%		0.69	%		0.94	%		0.51	%
Net investment income, net of reimbursements or recoupments		1.03	%C		0.63	%		0.89	%		0.69	%		0.93	%		0.50	%
Portfolio turnover rate		13	%B		32	%		16	%		62	%		34	%		56	%

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

^B  Not annualized.

^C  Annualized.

See accompanying notes

65

American Beacon Mid-Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Institutional Class
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015A			2014			2013
	(unaudited)
Net asset value, beginning of period	$	17.25		$	14.03		$	14.62		$	14.76		$	14.33		$	10.95
Income (loss) from investment operations:
Net investment income		0.10			0.16			0.26			0.16			0.12			0.13
Net gains (losses) on investments (both realized and unrealized)		(0.16	)		3.28			0.03			0.25			1.27			3.93
Total income (loss) from investment operations		(0.06	)		3.44			0.29			0.41			1.39			4.06
Less distributions:
Dividends from net investment income		(0.16	)		(0.22	)		(0.17	)		(0.10	)		(0.11	)		(0.20	)
Distributions from net realized gains		(0.44	)		–			(0.71	)		(0.45	)		(0.85	)		(0.48	)
Total distributions		(0.60	)		(0.22	)		(0.88	)		(0.55	)		(0.96	)		(0.68	)
Redemption fees added to beneficial interests		-			-			-			0.00	B		0.00	B		0.00	B
Net asset value, end of period	$	16.59		$	17.25		$	14.03		$	14.62		$	14.76		$	14.33
Total returnC		(0.47	)%D		24.71	%		2.39	%		2.73	%		10.20	%		39.18	%
Ratios and supplemental data:
Net assets, end of period	$	275,607,991		$	265,934,589		$	195,472,135		$	258,503,278		$	193,634,639		$	72,206,907
Ratios to average net assets:
Expenses, before reimbursements or recoupments		0.84	%E		0.89	%		0.89	%		0.85	%		0.89	%		0.99	%
Expenses, net of reimbursements or recoupments		0.84	%E		0.89	%		0.89	%		0.85	%		0.93	%		0.98	%
Net investment income, before expense reimbursements or recoupments		1.23	%E		1.06	%		1.65	%		1.10	%		0.92	%		1.05	%
Net investment income, net of reimbursements or recoupments		1.23	%E		1.06	%		1.65	%		1.10	%		0.88	%		1.06	%
Portfolio turnover rate		16	%D		28	%		27	%		79	%		24	%		48	%

^A  WEDGE Capital Management was added as an investment manager to the Mid-Cap Value Fund on May 11, 2015.

^B  Amount represents less than $0.01 per share.

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

^D  Not annualized.

^E  Annualized.

See accompanying notes

66

American Beacon Mid-Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Y Class
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015A			2014			2013
	(unaudited)
Net asset value, beginning of period	$	17.11		$	13.92		$	14.52		$	14.66		$	14.25		$	10.92
Income (loss) from investment operations:
Net investment income		0.10			0.15			0.23			0.15			0.18			0.17
Net gains (losses) on investments (both realized and unrealized)		(0.16	)		3.25			0.05			0.26			1.19			3.86
Total income (loss) from investment operations		(0.06	)		3.40			0.28			0.41			1.37			4.03
Less distributions:
Dividends from net investment income		(0.15	)		(0.21	)		(0.17	)		(0.10	)		(0.11	)		(0.22	)
Distributions from net realized gains		(0.44	)		–			(0.71	)		(0.45	)		(0.85	)		(0.48	)
Total distributions		(0.59	)		(0.21	)		(0.88	)		(0.55	)		(0.96	)		(0.70	)
Redemption fees added to beneficial interests		–			–			–			0.00	B		0.00	B		0.00	B
Net asset value, end of period	$	16.46		$	17.11		$	13.92		$	14.52		$	14.66		$	14.25
Total returnC		(0.49	)%D		24.60	%		2.29	%		2.76	%		10.15	%		38.99	%
Ratios and supplemental data:
Net assets, end of period	$	109,139,225		$	100,190,167		$	68,994,531		$	70,009,288		$	31,074,584		$	2,813,712
Ratios to average net assets:
Expenses, before reimbursements		0.92	%E		0.97	%		0.96	%		0.94	%		0.98	%		1.11	%
Expenses, net of reimbursements		0.92	%E		0.97	%		0.96	%		0.94	%		0.98	%		1.08	%
Net investment income, before expense reimbursements		1.16	%E		0.98	%		1.59	%		1.02	%		0.80	%		0.79	%
Net investment income, net of reimbursements		1.16	%E		0.98	%		1.59	%		1.02	%		0.80	%		0.82	%
Portfolio turnover rate		16	%D		28	%		27	%		79	%		24	%		48	%

^A  WEDGE Capital Management was added as an investment manager to the Mid-Cap Value Fund on May 11, 2015.

^B  Amount represents less than $0.01 per share.

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

^D  Not annualized.

^E  Annualized.

See accompanying notes

67

American Beacon Mid-Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Investor Class
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015A			2014			2013
	(unaudited)
Net asset value, beginning of period	$	17.40		$	14.14		$	14.73		$	14.89		$	14.47		$	10.98
Income (loss) from investment operations:
Net investment income		0.09			0.14			0.21			0.13			0.16			0.23
Net gains (losses) on investments (both realized and unrealized)		(0.17	)		3.31			0.05			0.25			1.21			3.83
Total income (loss) from investment operations		(0.08	)		3.45			0.26			0.38			1.37			4.06
Less distributions:
Dividends from net investment income		(0.13	)		(0.19	)		(0.14	)		(0.09	)		(0.10	)		(0.09	)
Distributions from net realized gains		(0.44	)		–			(0.71	)		(0.45	)		(0.85	)		(0.48	)
Total distributions		(0.57	)		(0.19	)		(0.85	)		(0.54	)		(0.95	)		(0.57	)
Redemption fees added to beneficial interests		–			–			–			0.00	B		0.00	B		0.00	B
Net asset value, end of period	$	16.75		$	17.40		$	14.14		$	14.73		$	14.89		$	14.47
Total returnC		(0.60	)%D		24.52	%		2.12	%		2.52	%		9.99	%		38.69	%
Ratios and supplemental data:
Net assets, end of period	$	405,581,397		$	274,552,551		$	243,421,035		$	304,799,582		$	246,404,670		$	17,871,568
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.06	%E		1.09	%		1.12	%		1.09	%		1.13	%		1.25	%
Expenses, net of reimbursements or recoupments		1.06	%E		1.09	%		1.12	%		1.09	%		1.14	%		1.23	%
Net investment income, before expense reimbursements or recoupments		1.04	%E		0.86	%		1.44	%		0.87	%		0.61	%		0.68	%
Net investment income, net of reimbursements or recoupments		1.04	%E		0.86	%		1.44	%		0.87	%		0.60	%		0.70	%
Portfolio turnover rate		16	%D		28	%		27	%		79	%		24	%		48	%

^A  WEDGE Capital Management was added as an investment manager to the Mid-Cap Value Fund on May 11, 2015.

^B  Amount represents less than $0.01 per share.

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

^D  Not annualized.

^E  Annualized.

See accompanying notes

68

American Beacon Mid-Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Advisor Class
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015A			2014			2013
	(unaudited)
Net asset value, beginning of period	$	16.83		$	13.69		$	14.27		$	14.46		$	14.07		$	10.81
Income (loss) from investment operations:
Net investment income		0.05			0.10			0.16			0.08			0.11			0.11
Net gains (losses) on investments (both realized and unrealized)		(0.15	)		3.18			0.05			0.25			1.17			3.83
Total income (loss) from investment operations		(0.10	)		3.28			0.21			0.33			1.28			3.94
Less distributions:
Dividends from net investment income		(0.03	)		(0.14	)		(0.08	)		(0.07	)		(0.04	)		(0.20	)
Distributions from net realized gains		(0.44	)		–			(0.71	)		(0.45	)		(0.85	)		(0.48	)
Total distributions		(0.47	)		(0.14	)		(0.79	)		(0.52	)		(0.89	)		(0.68	)
Redemption fees added to beneficial interests		–			–			–			0.00	B		0.00	B		0.00	B
Net asset value, end of period	$	16.26		$	16.83		$	13.69		$	14.27		$	14.46		$	14.07
Total returnC		(0.72	)%D		24.10	%		1.82	%		2.25	%		9.58	%		38.43	%
Ratios and supplemental data:
Net assets, end of period	$	4,007,125		$	3,682,231		$	6,622,356		$	6,684,131		$	7,149,083		$	727,587
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.41	%E		1.40	%		1.40	%		1.37	%		1.40	%		1.61	%
Expenses, net of reimbursements or recoupments		1.41	%E		1.40	%		1.40	%		1.37	%		1.46	%		1.49	%
Net investment income, before expense reimbursements or recoupments		0.67	%E		0.55	%		1.16	%		0.58	%		0.35	%		0.46	%
Net investment income, net of reimbursements or recoupments		0.67	%E		0.55	%		1.16	%		0.58	%		0.30	%		0.58	%
Portfolio turnover rate		16	%D		28	%		27	%		79	%		24	%		48	%

^A  WEDGE Capital Management was added as an investment manager to the Mid-Cap Value Fund on May 11, 2015.

^B  Amount represents less than $0.01 per share.

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

^D  Not annualized.

^E  Annualized.

See accompanying notes

69

American Beacon Mid-Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	A Class
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015A			2014			2013
	(unaudited)
Net asset value, beginning of period	$	16.84		$	13.70		$	14.28		$	14.43		$	14.09		$	10.82
Income (loss) from investment operations:
Net investment income		0.10			0.13			0.18			0.11			0.13			0.14
Net gains (losses) on investments (both realized and unrealized)		(0.19	)		3.18			0.05			0.25			1.16			3.80
Total income (loss) from investment operations		(0.09	)		3.31			0.23			0.36			1.29			3.94
Less distributions:
Dividends from net investment income		(0.07	)		(0.17	)		(0.10	)		(0.06	)		(0.10	)		(0.19	)
Distributions from net realized gains		(0.44	)		-			(0.71	)		(0.45	)		(0.85	)		(0.48	)
Total distributions		(0.51	)		(0.17	)		(0.81	)		(0.51	)		(0.95	)		(0.67	)
Redemption fees added to beneficial interests		-			-			-			0.00	B		0.00	B		0.00	B
Net asset value, end of period	$	16.24		$	16.84		$	13.70		$	14.28		$	14.43		$	14.09
Total returnC		(0.65	)%D		24.26	%		1.98	%		2.35	%		9.68	%		38.39	%
Ratios and supplemental data:
Net assets, end of period	$	14,404,048		$	18,170,218		$	19,486,655		$	16,422,504		$	18,345,497		$	1,666,696
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.22	%E		1.27	%		1.26	%		1.25	%		1.33	%		1.48	%
Expenses, net of reimbursements or recoupments		1.22	%E		1.27	%		1.26	%		1.25	%		1.33	%		1.49	%
Net investment income, before expense reimbursements or recoupments		0.83	%E		0.69	%		1.30	%		0.71	%		0.42	%		0.44	%
Net investment income, net of reimbursements or recoupments		0.83	%E		0.69	%		1.30	%		0.71	%		0.42	%		0.43	%
Portfolio turnover rate		16	%D		28	%		27	%		79	%		24	%		48	%

^A  WEDGE Capital Management was added as an investment manager to the Mid-Cap Value Fund on May 11, 2015.

^B  Amount represents less than $0.01 per share.

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

^D  Not annualized.

^E  Annualized.

See accompanying notes

70

American Beacon Mid-Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	C Class
	Six Months Ended April 30,			Year Ended October 31,
	2018			2017			2016			2015A			2014			2013
	(unaudited)
Net asset value, beginning of period	$	16.27		$	13.26		$	13.87		$	14.08		$	13.81		$	10.70
Income (loss) from investment operations:
Net investment income (loss)		0.03			(0.03	)		0.07			0.01			0.08			0.11
Net gains (losses) on investments (both realized and unrealized)		(0.16	)		3.11			0.06			0.23			1.09			3.67
Total income (loss) from investment operations		(0.13	)		3.08			0.13			0.24			1.17			3.78
Less distributions:
Dividends from net investment income		-			(0.07	)		(0.03	)		-			(0.05	)		(0.19	)
Distributions from net realized gains		(0.44	)		-			(0.71	)		(0.45	)		(0.85	)		(0.48	)
Total distributions		(0.44	)		(0.07	)		(0.74	)		(0.45	)		(0.90	)		(0.67	)
Redemption fees added to beneficial interests		-			-			-			0.00	B		0.00	B		0.00	B
Net asset value, end of period	$	15.70		$	16.27		$	13.26		$	13.87		$	14.08		$	13.81
Total returnC		(0.91	)%D		23.27	%		1.19	%		1.57	%		8.88	%		37.32	%
Ratios and supplemental data:
Net assets, end of period	$	6,899,344		$	6,520,983		$	6,030,130		$	6,238,827		$	5,104,394		$	904,692
Ratios to average net assets:
Expenses, before reimbursements or recoupments		1.85	%E		2.04	%		2.04	%		2.01	%		2.12	%		2.25	%
Expenses, net of reimbursements or recoupments		1.85	%E		2.04	%		2.04	%		2.01	%		2.13	%		2.24	%
Net investment income (loss), before expense reimbursements or recoupments		0.23	%E		(0.09	)%		0.53	%		(0.05	)%		(0.33	)%		(0.27	)%
Net investment income (loss), net of reimbursements or recoupments		0.23	%E		(0.09	)%		0.53	%		(0.05	)%		(0.34	)%		(0.26	)%
Portfolio turnover rate		16	%D		28	%		27	%		79	%		24	%		48	%

^A  WEDGE Capital Management was added as an investment manager to the Mid-Cap Value Fund on May 11, 2015.

^B  Amount represents less than $0.01 per share.

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

^D  Not annualized.

^E  Annualized.

See accompanying notes

71

American Beacon Mid-Cap Value Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	R6 Class
	February 28, 2018A to April 30, 2018
	(unaudited)
Net asset value, beginning of period	$	16.94
Income (loss) from investment operations:
Net investment income		0.04
Net gains (losses) on investments (both realized and unrealized)		(0.39	)
Total income (loss) from investment operations		(0.35	)
Net asset value, end of period	$	16.59
Total returnB		(0.47	)%C
Ratios and supplemental data:
Net assets, end of period	$	97,935
Ratios to average net assets:
Expenses, before reimbursements		2.69	%D
Expenses, net of reimbursements		0.88	%D
Net investment income (loss), before expense reimbursements		(0.36	)%D
Net investment income, net of reimbursements		1.45	%D
Portfolio turnover rate		16	%C

^A  Commencement of operations.

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

^C  Not annualized.

^D  Annualized.

See accompanying notes

72

Delivery of Documents

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

To obtain more information about the Fund:

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

Fund Service Providers:

CUSTODIAN State Street Bank and Trust Boston, Massachusetts TRANSFER AGENT DST Asset Manager Solutions Kansas City, Missouri INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Dallas, Texas DISTRIBUTOR Resolute Investment Distributors, Inc. Irving, TX

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

American Beacon Funds, American Beacon Balanced Fund and American Beacon Mid-Cap Value Fund are service marks of American Beacon Advisors, Inc.

SAR 04/18

ITEM 2. CODE OF ETHICS.

Not Applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not Applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not Applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not Applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

The schedules of investments for each series of the Trust are included in the shareholder reports presented in Item 1.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not Applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not Applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not Applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

The Trust has made no material changes to the procedures by which shareholders may recommend nominees to the Trust’s Board of Trustees since the Trust last disclosed such procedures in Schedule 14A.

ITEM 11. CONTROLS AND PROCEDURES.

(a) Based upon an evaluation within 90 days of the filing date of this report, the principal executive and financial officers concluded that the disclosure controls and procedures of the Trust are effective.

(b) There were no changes in the Trust’s internal control over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Not Applicable.

(a)(2) A separate certification for each principal executive officer and principal financial officer of the Trust as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) is attached hereto as EX-99.CERT.

(a)(3) Not Applicable.

(b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940 are attached hereto as EX-99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant): American Beacon Funds

By	/s/ Gene L. Needles, Jr.
Gene L. Needles, Jr.
President
American Beacon Funds

Date: July 10, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By	/s/ Gene L. Needles, Jr.
Gene L. Needles, Jr.
President
American Beacon Funds

Date: July 10, 2018

By	/s/ Melinda G. Heika
Melinda G. Heika
Treasurer
American Beacon Funds

Date: July 10, 2018

EX-99.CODE

AMERICAN BEACON FUNDS

AMERICAN BEACON SELECT FUNDS

AMERICAN BEACON INSTITUTIONAL FUNDS TRUST

(collectively, the “Trusts”)

Code of Ethics for Principal Executive and Financial Officers

Dated: March 24, 2017

Purpose

The Trusts have adopted this Code of Ethics for Principal Executive and Financial Officers (the “Code”), which applies to the Trusts’ Principal Executive Officer and Principal Financial Officer (the “Covered Officers” as set forth in Exhibit A), for the purpose of promoting:

• honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

• full, fair, accurate, timely, and understandable disclosure in reports and documents that a Trust files with, or submits to, the Securities and Exchange Commission (the “SEC”) and in other public communications made by the registrant;

• compliance with applicable governmental laws, rules, and regulations;

• the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

• accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

Conflicts of Interest

For purposes of this Code, a “conflict of interest” occurs when a Covered Officer’s “personal interests” interfere with the interests of, or his/her service to, the Trusts. For example, a conflict of interest would arise if a Covered Officer, or a member of his/her family, receives improper personal benefits as a result of his/her position with the Trusts.

Certain conflicts of interest arise out of the relationship between Covered Officers and the Trusts and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (“Investment Company Act”) and the Investment Advisers Act of 1940 (“Investment Advisers Act”). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Trusts because of their status as “affiliated persons” of the Trusts.

Conflicts also may arise from a Covered Officer’s position or employment at American Beacon Advisors, Inc. (“AmBeacon”), the Trusts’ manager, and his/her position with each Trust. The Covered Officers may also hold positions or be employed by AmBeacon’s affiliated companies, some of which may be sub-advisors to the Trusts. This Code recognizes that the Covered Officers will, in the normal course of their duties, be involved in establishing policies and implementing decisions that will have different effects on AmBeacon, its affiliates and the Trusts. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Trusts and AmBeacon and is consistent with the performance by the

Covered Officers of their duties as officers of the Trusts. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Trusts.

Each Covered Officer should not:

• use his/her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Trusts whereby the Covered Officer would benefit personally to the detriment of the Trusts; or

• cause the Trusts to take action, or fail to take action, for the personal benefit of the Covered Officer rather than the benefit of the Trusts.

At times, certain situations may arise that may, or may not, be considered conflicts of interest under this Code. Covered Officers are encouraged to discuss such situations with the Trusts’ Chief Legal Officer (“CLO”). Examples of these types of situations include:

• service as a director on the board of any public or private company;

• the receipt of any non-nominal gifts in excess of $150;

• the receipt of any entertainment from any company with which the Trusts have current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;

• any ownership interest in, or any consulting or employment relationship with, any of the Trusts’ service providers, other than AmBeacon or its affiliates, the distributor for the Trusts’ shares, or any affiliated person thereof;

• a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Trusts for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer’s employment, such as compensation or equity ownership.

Disclosure and Compliance

Each Covered Officer:

• should familiarize himself/herself with the disclosure requirements generally applicable to the Trusts;

• should not knowingly misrepresent, or cause others to misrepresent, facts about the Trusts to others, whether within or outside the Trusts, including to the Trusts’ Trustees and auditors, and to governmental regulators and self-regulatory organizations;

• should, to the extent appropriate within his/her area of responsibility, consult with other officers and employees of the Trusts and AmBeacon with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Trusts file with, or submit to, the SEC and in other public communications made by the Trusts; and

2

• is responsible to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

Reporting and Accountability

Each Covered Officer must:

• upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he/she has received, read, and understands the Code;

• annual thereafter affirm to the Board that he/she has complied with the requirements of the Code;

• complete at least annually the Officer Questionnaire by detailing any directorships with public or private companies and/or material relationships or transactions with affiliated persons of any Trust or its series, except for directorships or other positions with AmBeacon and its affiliates, which are already known by the CLO;

• not retaliate against any other Covered Officer or any employee of the Trusts or their affiliated persons for reports of potential violations that are made in good faith; and

• notify the CLO promptly if he/she knows of any violations of this Code. Failure to do so is itself a violation of this Code.

The CLO is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. In addition, the CLO is authorized and encouraged to consult with counsel to the Trusts and counsel to the Independent Trustees of the Trusts’ Boards of Trustees. However, any approvals or waivers sought by the Covered Officers will be considered by the Independent Trustees.

The Trusts will follow these procedures in investigating and enforcing this Code:

• the CLO will take all appropriate action to investigate any potential violations reported to him;

• if, after such investigation, the CLO believes that no violation has occurred, the CLO is not required to take any further action;

• any matter that the CLO believes is a violation will be reported to the Independent Trustees;

• if the Independent Trustees concur that a violation has occurred, they will inform and make a recommendation to the applicable Trust’s Board of Trustees, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of AmBeacon or its board; or a recommendation to dismiss the Covered Officer;

• the Independent Trustees will be responsible for granting waivers, as appropriate; and

• any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

3

Other Policies and Procedures

This Code shall be the sole code of ethics adopted by the Trusts for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Trusts, AmBeacon, the distributor for the Trusts’ shares, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Trusts’ and AmBeacon’ codes of ethics under Rule 17j-1 under the Investment Company Act and the more detailed policies and procedures set forth in the Trusts’ Statement of Policy on Material Non-Public Information are separate requirements applying to the Covered Officers and others, and are not part of nor replaced by this Code.

Amendments

Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Board, including a majority of Independent Trustees.

Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the appropriate Board of Trustees, its counsel and AmBeacon.

Internal Use

This Code is intended solely for the internal use by the Trusts and does not constitute an admission, by or on behalf of any Trust, as to any fact, circumstance, or legal conclusion.

4

EXHIBIT A

Persons Covered by this Code of Ethics

	Position with each Trust	Name
Principal Executive Officer	President	Gene L. Needles, Jr.
Principal Financial Officer	Treasurer/Principal Accounting Officer	Melinda G. Heika

EX-99.CERT

For period ended 4/30/2018

Registrant Name: American Beacon Funds

File Number: 811-4984

EXHIBIT 99.CERT

I, Melinda G. Heika, certify that:

1. I have reviewed this report on Form N-CSR of American Beacon Funds;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 10, 2018	/s/ Melinda G. Heika
	Melinda G. Heika
	Treasurer
	American Beacon Funds

I, Gene L. Needles, Jr., certify that:

1. I have reviewed this report on Form N-CSR of American Beacon Funds;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 10, 2018	/s/ Gene L. Needles, Jr.
	Gene L. Needles, Jr.
	President
	American Beacon Funds

EX-99.906CERT

For period ended 4/30/2018

Registrant Name: American Beacon Funds

File Number: 811-4984

EXHIBIT 99.906CERT

Gene L. Needles, Jr. and Melinda G. Heika, respectively, the President and Treasurer of the American Beacon Funds (the “Registrant”), each certify to the best of his or her knowledge and belief that:

1. the Registrant’s report on Form N-CSR for the period ended April 30, 2018 (the “Form N-CSR”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and

2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ Gene L. Needles, Jr.	/s/ Melinda G. Heika
Gene L. Needles, Jr.	Melinda G. Heika
President	Treasurer
American Beacon Funds	American Beacon Funds
Date: July 10, 2018

A signed original of this written statement required by Section 906 has been provided to American Beacon Funds and will be retained by American Beacon Funds and furnished to the Securities and Exchange Commission or its staff.