N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-4984

AMERICAN BEACON FUNDS

(Exact name of registrant as specified in charter)

220 East Las Colinas Boulevard, Suite 1200

Irving, Texas 75039

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

JEFFREY K. RINGDAHL, PRESIDENT

220 East Las Colinas Boulevard, Suite 1200

Irving, Texas 75039

(Name and address of agent for service)

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

Date of fiscal year end: January 31, 2023

Date of reporting period: January 31, 2023

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

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

DEVELOPING WORLD INCOME FUND

Investing in foreign developing countries, including emerging and frontier market securities, may involve heightened risk due to currency fluctuations and economic and political risks, such as lower incomes, less integrated financial markets, smaller economies, and less mature political systems compared to developed countries. Geopolitical and other events have led to market disruptions causing adverse changes in the value of investments broadly. Changes in value may be temporary or may last for extended periods. Investing in derivative instruments involves liquidity, credit, interest rate and market risks. The use of fixed-income securities entails interest rate and credit risks. Interest rate risk is the risk that debt securities will decrease in value with increases in market interest rates. Credit risk is the risk that the issuer of a bond will fail to make timely payment of interest or principal; the decline in an issuer’s credit rating can cause the price of its bonds to go down. Investments in high-yield securities (commonly referred to as “junk bonds”), including restricted securities, are subject to greater levels of credit, interest rate, market and liquidity risks than investment-grade securities. The Fund’s incorporation of environmental, social and/or governance (ESG) considerations in its investment strategy may cause it to underperform funds that do not incorporate these considerations. 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.

NIS CORE PLUS BOND FUND

The use of fixed-income securities entails interest rate and credit risks. Investments in high-yield securities (commonly referred to as “junk bonds”), including loans, restricted securities and floating-rate securities, are subject to greater levels of credit, interest rate, market and liquidity risks than investment-grade securities. Interest rate risk is the risk that debt securities will decrease in value with increases in market interest rates. Credit risk is the risk that the issuer of a bond will fail to make timely payment of interest or principal; the decline in an issuer’s credit rating can cause the price of its bonds to go down. Investing in foreign securities may involve heightened risk due to currency fluctuations and economic and political risks. Geopolitical and other events have led to market disruptions causing adverse changes in the value of investments broadly. Changes in value may be temporary or may last for extended periods. The Fund may have high portfolio turnover risk, which could increase the Fund’s transaction costs and possibly have a negative impact on performance. Please see the prospectus for a complete discussion of the Fund’s risks. There can be no assurances that the investment objectives of this Fund will be met.

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

American Beacon Funds January 31, 2023

Contents

President’s Message	1
Market and Performance Overviews	2
Expense Examples	9
Report of Independent Registered Public Accounting Firm	11
Schedules of Investments:
American Beacon Developing World Income Fund	12
American Beacon NIS Core Plus Bond Fund	25
Financial Statements	34
Notes to Financial Statements	37
Financial Highlights:
American Beacon Developing World Income Fund	71
American Beacon NIS Core Plus Bond Fund	76
Federal Tax Information	80
Trustees and Officers of the American Beacon Funds	81
Privacy Policy	87

  Additional Fund Information Back Cover

President’s Message

Dear Shareholders,   Warren E. Buffett, the “Oracle of Omaha” and billionaire chairman and CEO of Berkshire Hathaway, once said, “Predicting rain doesn’t count. Building arks does.”   Mr. Buffett’s plain-spoken words make a great deal of common sense. Figuring out when the next dangerous storm may occur could prove to be an effort in futility if we haven’t also devised a plan for preserving our physical well-being when the thunder rolls and the lightning strikes. The time to build a shelter is before the storm clouds appear on the horizon. The same can also be said about our investment portfolios. Careful planning and fine-tuning can be especially important as we seek to preserve and grow our investment

portfolios during periods of economic uncertainty – particularly as we consider the effects of higher inflation, slower economic growth and geopolitical concerns such as Russia’s war with Ukraine.

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

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

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

Best Regards,

Jeffrey K. Ringdahl

President

American Beacon Funds

1

Global Fixed-Income Market Overview

January 31, 2023 (Unaudited)

During the 12-month period ended January 31, 2023, the global bond market produced negative returns, evidenced by the Bloomberg Global Aggregate Bond Index (“Index”) return of -11.69%, while the domestic bond market also declined with the Bloomberg US Aggregate Bond Index returning -8.36%.

Just as investors were preparing to move past COVID-19 and the omicron variant, rising inflationary data and Russia’s war with Ukraine reminded everyone that the markets might still face challenges during the period. Energy prices moved sharply higher and tight supply chains, coupled with strong consumer activity, helped push headline Consumer Price Index inflation to levels not seen since the 1980s. The global bond market reacted accordingly and, by the end of March 2022, the Index was already negative. Unfortunately, this was just the beginning of a long and negative period for many in the fixed-income markets as the Federal Reserve (“Fed”) had little choice but to increase its benchmark federal funds rate. Inflationary data would remain unrelenting in the early part of the period, and 25-basis-point (0.25%) increases gave way to routine 75-basis-point (0.75%) increases as both the market and the Fed realized they were behind the curve.

With respect to the curve, the oft-quoted two- to 10-year Treasury bond curve inverted in March, only to steepen in late spring before finally going negative in July 2022. Market watchers will note this barometer tends to be a fairly reliable recession indicator – especially when coupled with rising interest rates, slowing manufacturing and bond investors heading toward the exits. Investment-grade corporate credit spreads reached their widest levels in October. Things were even more volatile in the high-yield sector as spreads ratcheted higher. Treasury yields and volatility also peaked around that time.

Fixed-income performance finally turned the corner in the latter part of the period as market participants started to believe that the Fed and other central banks around the world might finally be doing enough to counter inflation.

Emerging-market bonds were not immune to the challenges in fixed income and were affected by numerous macroeconomic factors over the period. Against this backdrop, the JPMorgan^® EMBI (“JPM EMBI”) Global Diversified Index posted a -12.69% return for the period. Local-currency, emerging-market results were also negative, but did protect more on the downside, as demonstrated by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index, which returned -7.89%. The smaller, less-developed frontier economies went through a challenging period as well with the JPMorgan Next Generation Markets Index (NEXGEM^SM) returning -13.54%.

2

American Beacon Developing World Income Fund^SM

Performance Overview

January 31, 2023 (Unaudited)

The Investor Class of the American Beacon Developing World Income Fund (the “Fund”) returned -7.81% for the 12-month period ended January 31, 2023. The Fund outperformed the JPMorgan^® EMBI (“JPM EMBI”) Global Diversified Index (the “Index”) return of -12.69%.

Comparison of Change in Value of a $10,000 Investment for the period from 2/25/2014 through 1/31/2023

Total Returns for the Period ended January 31, 2023
	Ticker	1 Year			3 Years			5 Years			Since Inception 02/25/2014			Value of  $10,000 02/25/2014- 1/31/2023
R5 Class (1,3)	AGEIX		-7.50	%		-0.09	%		1.73	%		3.86	%		$	14,028
Y Class (1,3)	AGEYX		-7.55	%		-0.15	%		1.67	%		3.78	%		$	13,934
Investor Class (1,3)	AGEPX		-7.81	%		-0.42	%		1.42	%		3.52	%		$	13,615
A without Sales Charge (1,3)	AGUAX		-7.67	%		-0.44	%		1.37	%		3.48	%		$	13,568
A with Sales Charge (1,3)	AGUAX		-12.09	%		-2.04	%		0.39	%		2.91	%		$	12,922
C without Sales Charge (1,3)	AGECX		-8.41	%		-1.15	%		0.67	%		2.80	%		$	12,802
C with Sales Charge (1,3)	AGECX		-9.41	%		-1.15	%		0.67	%		2.80	%		$	12,802
JPMorgan® EMBI (“JPM EMBI”) Global Diversified Index (2)			-12.69	%		-4.77	%		-0.69	%		2.58	%		$	12,553

1. Performance shown is historical and is not indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is calculated based on the published end of day net asset values as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, please call 1-800-967-9009 or visit www.americanbeaconfunds.com. Fund performance in the table above does not reflect the deduction of taxes a shareholder would pay on distributions or the redemption of shares. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights. Performance prior to waiving fees was lower than actual returns shown for periods when fee waivers were in place for each Class. A portion of fees charged to the R5 Class of the Fund was waived from Fund inception through 2015, partially recovered in 2016, waived in 2017 and 2018, and recovered in 2019 and 2020. A portion of fees charged to the Investor Class of the Fund was waived from Fund inception through 2015, partially recovered in 2016, waived in 2017, and recovered in 2018. A portion of fees charged to the Y Class of the Fund was waived from Fund inception through 2015, partially recovered in 2016, waived in 2017, and partially recovered in 2019. A portion of fees charged to the A Class of the Fund was waived from Fund inception through 2015, partially recovered in 2016, waived in 2017, and recovered from 2018 through 2020. A portion of fees charged to the C Class of the Fund was waived from Fund inception through 2017 and was recovered in 2018 and 2019. A Class shares have a maximum

3

American Beacon Developing World Income Fund^SM

Performance Overview

January 31, 2023 (Unaudited)

sales charge of 4.75%. The maximum contingent deferred sales charge for the C Class is 1.00% for shares redeemed within one year of the date of purchase.

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

3. The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the R5, Y, Investor, A, and C Class shares were 1.06%, 1.13%, 1.38%, 1.36%, and 2.12%, 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 significant outperformance relative to the Index primarily reflects its lower sensitivity to rising interest rates due to its shorter duration, higher yields, wider spreads, and more off-the-run status of developing market (DM) bonds relative to emerging market (EM) bonds. The Fund also benefitted from holding local-currency (LC) debt, as hard-currency denominated debt suffered bouts of extreme volatility during the period due to risk-off investor sentiment. The Fund held just under 40% of its assets in securities denominated in local DM currencies during the period.

The period was difficult for risk assets and risk-free interest rates. Russia’s invasion of Ukraine added to geopolitical uncertainty and wreaked havoc on global energy and agricultural markets causing upward pressure to already-elevated inflation and downward pressure on global growth. China’s “Zero-Covid” policy was a source of growth concern as well. Stocks and fixed-income sold off in tandem for the majority of the period amid concerted global monetary tightening. Risk sentiment finally improved in November as inflation slowed and investors became more confident that inflation had peaked. The prospect of a “pivot” by global central banks to become more dovish increased, and emerging- and developing-market debt indices rebounded to register positive returns for the fourth quarter and into January 2023. China’s relaxation of COVID-19 restrictions, which increased the likelihood of a full economic reopening, supported risk sentiment further, as did governmental support for their distressed property sector.

In times of LC weakness, the higher yields from such holdings helps to offset much of the currency effects, and the securities may be less susceptible to broader investor sentiment. Higher developing-market bond yields continue to remain attractive relative to emerging- and developed-market yields.

The Fund’s sub-advisors consistently employed flexible top-down and bottom-up investment strategies to navigate opportunities within developing-market countries. They seek to understand macroeconomic variables affecting the relationships between developed, emerging and developing-market countries, and they incorporate country-specific analysis to identify the best risk-adjusted opportunities. This process has remained consistent since each subadvisors’ inception with the Fund.

Top Ten Holdings (% Net Assets)
Mozambique International Bonds, 5.000%, Due 9/15/2031		2.6
Uruguay Government International Bonds, 3.875%, Due 7/2/2040		2.6
Argentina Government International Bonds, 1.500%, Due 7/9/2035		1.6
Cameroon International Bonds, 5.950%, Due 7/7/2032		1.5
Ivory Coast Government International Bonds, 4.875%, Due 1/30/2032		1.5
Ecuador Government International Bonds, 5.500%, Due 07/31/2030		1.2
Kenya Infrastructure Bonds, 12.500%, Due 1/10/2033, Series 15YR		1.2
Republic of Zambia (Issuer ICBC Standard Bank PLC), 11.000%, Due 1/27/2026		1.2
Angolan Government International Bonds, 8.250%, Due 5/9/2028		1.1
Egypt Government International Bonds, 7.500%, Due 2/16/2061		1.1
Total Fund Holdings	234

4

American Beacon Developing World Income Fund^SM

Performance Overview

January 31, 2023 (Unaudited)

Top Ten Country Weightings (% Investments)
Zambia	6.0
Angola	5.4
Mozambique	5.1
Kenya	4.5
Egypt	4.4
Kazakhstan	4.3
Nigeria	4.0
Uganda	4.0
Dominican Republic	3.8
Ivory Coast	3.8
Sector Allocation (% Investments)
Foreign Sovereign Obligations	84.7
Credit-Linked Notes	10.1
Financial	2.5
Energy	1.0
Industrial	0.8
Basic Materials	0.5
Communications	0.4

5

American Beacon Developing World Income Fund^SM

Performance Overview

January 31, 2023 (Unaudited)

Country Allocation (% Investments)
Zambia	6.0
Angola	5.4
Mozambique	5.1
Kenya	4.5
Egypt	4.4
Kazakhstan	4.3
Nigeria	4.0
Uganda	4.0
Dominican Republic	3.8
Ivory Coast	3.8
Uruguay	3.5
Supranational	3.4
Ghana	3.1
Ecuador	3.0
Gabon	2.9
Iraq	2.5
Cameroon	2.4
Uzbekistan	2.3
Argentina	2.2
Paraguay	2.1
Tunisia	1.9
Kyrgyzstan	1.8
Armenia	1.6
El Salvador	1.6
Mongolia	1.6
Senegal	1.5
Georgia	1.4
Pakistan	1.3
Tajikistan	1.1
Malawi	1.0
United States	1.0
Benin	0.9
Ethiopia	0.9
Netherlands	0.9
Costa Rica	0.8
Papua New Guinea	0.8
Serbia	0.8
Sri Lanka	0.8
Maldives	0.7
Rwanda	0.7
Ireland	0.6
Ukraine	0.6
United Republic of Tanzania	0.5
Jordan	0.4
Algeria	0.3
Azerbaijan	0.3
Nicaragua	0.3
Suriname	0.3
Trinidad and Tobago	0.3
Republic of Mauritius	0.2
South Africa	0.2
Togo	0.2

6

American Beacon NIS Core Plus Bond Fund^SM

Performance Overview

January 31, 2023 (Unaudited)

The Y Class of the American Beacon NIS Core Plus Bond Fund (the “Fund”) returned -8.31% for the 12-month period ending January 31, 2023. The Fund outperformed the Bloomberg US Aggregate Bond Index (the “Index”) return of -8.36% for the period.

Comparison of Change in Value of a $100,000 Investment for the period from 9/10/2020 through 1/31/2023

Total Returns for the Period ended January 31, 2023
	Ticker	1 Year			Since Inception (09/10/2020)			Value of  $100,000 09/10/2020- 1/31/2023
Y Class (1,3)	NISYX		-8.31	%		-3.69	%		$	91,390
A without Sales Charge (1,3)	NISAX		-8.54	%		-3.93	%		$	90,845
A with Sales Charge (1,3)	NISAX		-11.99	%		-5.46	%		$	87,435
C without Sales Charge (1,3)	NISCX		-9.22	%		-4.65	%		$	89,230
C with Sales Charge (1,3)	NISCX		-10.22	%		-4.65	%		$	89,230
R6 Class (1,3)	NISRX		-8.22	%		-3.60	%		$	91,608
Bloomberg US Aggregate Bond Index (2)			-8.36	%		-4.82	%		$	88,847

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 each Class of the Fund has been waived since Fund inception. Performance prior to waiving fees was lower than the actual returns shown since inception. A Class shares have a maximum sales charge of 3.75%. The maximum contingent deferred sales charge for the C Class is 1.00% for shares redeemed within one year of the date of purchase.

2. The Bloomberg US 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. One cannot directly invest in an index.

3. The Total Annual Fund Operating Expense ratios set forth in the most recent Fund prospectus for the Y, A, C, and R6 Class shares were 6.02%, 6.29%, 7.05%, and 5.10%, 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.

7

American Beacon NIS Core Plus Bond Fund^SM

Performance Overview

January 31, 2023 (Unaudited)

The Fund’s outperformance of the Index was partially attributable to the Fund’s slight duration underweight relative to the Index, which helped as rates increased during the period. Sector allocation and security selection within the Energy, Capital Goods and Transportation credit sectors was also beneficial to the Fund’s performance relative to the Index, as was the Fund’s below investment grade exposure. The Fund also benefitted from security selection within Agency fixed rate debt and an overweight to manufactured housing credits.

The Fund continues to utilize both bottom-up and top-down inputs to identify the best relative value available across the broad range of domestic fixed income instruments to benefit performance over the long term.

Top Ten Holdings (% Net Assets)
U.S. Treasury Notes, 0.750%, Due 8/31/2026		4.6
U.S. Treasury Notes, 2.375%, Due 3/31/2029		3.2
U.S. Treasury Notes, 1.500%, Due 1/31/2027		3.2
U.S. Treasury Notes, 2.875%, Due 5/15/2032		3.2
U.S. Treasury Bonds, 2.250%, Due 2/15/2052		3.0
U.S. Treasury Bonds, 1.750%, Due 8/15/2041		2.3
U.S. Treasury Notes, 4.125%, Due 11/15/2032		1.9
U.S. Treasury Notes, 0.500%, Due 2/28/2026		1.4
New Residential Mortgage Loan Trust, 5.556%, Due 1/25/2048, 2018 4A B1, (1 mo. USD LIBOR + 1.050%)		1.1
U.S. Treasury Bonds, 2.875%, Due 5/15/2052		1.1
Total Fund Holdings	287
Sector Allocation (% Investments)
U.S. Treasury Obligations		30.7
Financial		12.6
Asset-Backed Obligations		10.9
U.S. Agency Mortgage-Backed Obligations		9.1
Collateralized Mortgage Obligations		8.0
Municipal Obligations		7.3
Commercial Mortgage-Backed Obligations		4.9
Consumer, Cyclical		4.4
Energy		3.9
Communications		2.2
Consumer, Non-Cyclical		2.2
Utilities		1.5
Industrial		1.0
Technology		0.8
Basic Materials		0.5
Country Allocation (% Fixed Income)
United States		98.4
Canada		0.9
France		0.4
China/Hong Kong		0.2
United Kingdom		0.1

8

American Beacon Funds^SM

Expense Examples

January 31, 2023 (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, 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 August 1, 2022 through January 31, 2023.

Actual Expenses

The “Actual” lines of the tables provide information about actual account values and actual expenses. You may use the information on this page, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = $8.60), then multiply the result by the “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. Shareholders of the Investor and R5 Classes that invest in the American Beacon Developing World Income 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 R5 Classes that invest in the American Beacon Developing World Income 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.

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

9

American Beacon Funds^SM

Expense Examples

January 31, 2023 (Unaudited)

American Beacon Developing World Income Fund
	Beginning Account Value 8/1/2022		Ending Account Value 1/31/2023		Expenses Paid  During Period 8/1/2022-1/31/2023*
R5 Class
Actual		$1,000.00		$1,090.10		$5.74
Hypothetical**		$1,000.00		$1,019.71		$5.55
Y Class
Actual		$1,000.00		$1,089.90		$6.01
Hypothetical**		$1,000.00		$1,019.46		$5.80
Investor Class
Actual		$1,000.00		$1,088.60		$7.42
Hypothetical**		$1,000.00		$1,018.10		$7.17
A Class
Actual		$1,000.00		$1,088.40		$7.53
Hypothetical**		$1,000.00		$1,018.00		$7.27
C Class
Actual		$1,000.00		$1,084.90		$11.30
Hypothetical**		$1,000.00		$1,014.37		$10.92

* Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 1.09%, 1.14%, 1.41%, 1.43%, and 2.15% for the R5, Y, Investor, A, and C Classes, respectively, multiplied by the average account value over the period, multiplied by the number derived by dividing the number of days in the most recent fiscal half-year (184) by days in the year (365) to reflect the half-year period.

** 5% return before expenses.

American Beacon NIS Core Plus Bond Fund
	Beginning Account Value 8/1/2022		Ending Account Value 1/31/2023		Expenses Paid During Period 8/1/2022-1/31/2023*
Y Class
Actual		$1,000.00		$984.70		$2.65
Hypothetical**		$1,000.00		$1,022.53		$2.70
A Class
Actual		$1,000.00		$983.50		$3.90
Hypothetical**		$1,000.00		$1,021.27		$3.97
C Class
Actual		$1,000.00		$979.80		$7.63
Hypothetical**		$1,000.00		$1,017.49		$7.78
R6 Class
Actual		$1,000.00		$984.10		$2.15
Hypothetical**		$1,000.00		$1,023.04		$2.19

* Expenses are equal to the Fund’s annualized expense ratios for the six-month period of 0.53%, 0.78%, 1.53%, and 0.43% for the Y, 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 (184) by days in the year (365) to reflect the half-year period.

** 5% return before expenses.

10

American Beacon Funds^SM

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of American Beacon Funds and Shareholders of American Beacon Developing World Income Fund and American Beacon NIS Core Plus Bond Fund.

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of American Beacon Developing World Income Fund and American Beacon NIS Core Plus Bond Fund (two of the series constituting American Beacon Funds, hereafter collectively referred to as the “Funds”) as of January 31, 2023, the related statements of operations for the year ended January 31, 2023, the statements of changes in net assets for each of the two years in the period ended January 31, 2023, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of January 31, 2023, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended January 31, 2023 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of January 31, 2023 by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP

Boston, Massachusetts

March 28, 2023

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

11

American Beacon Developing World Income Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount*			Fair Value
Algeria - 0.25% (Cost $1,000,000)
Credit-Linked Notes - 0.25%
Republic of Algeria (Issuer Neder Financierings-MAAT), 10.000%, Due 11/15/2023		$	1,000,000		$	989,778
Angola - 4.81%
Credit-Linked Notes - 0.20%
Republic of Angola (Issuer Aurora Australis B.V.), 11.402%, Due 12/19/2023, (6 mo. USD LIBOR + 6.250%)A B			187,500			191,962
Republic of Angola (Issuer ICBC Standard Bank PLC), 16.500%, Due 3/18/2024		AOA	300,000,000			597,544
Total Credit-Linked Notes						789,506
Foreign Sovereign Obligations - 4.61%
Angolan Government International Bonds,
8.250%, Due 5/9/2028B			9,203,000			8,701,436
8.000%, Due 11/26/2029C			2,114,000			1,959,593
8.750%, Due 4/14/2032C			3,475,000			3,209,753
9.375%, Due 5/8/2048B			4,267,000			3,797,887
9.125%, Due 11/26/2049B			800,000			699,480
Total Foreign Sovereign Obligations						18,368,149
Total Angola (Cost $19,578,870)						19,157,655
Argentina - 1.93%
Foreign Sovereign Obligations - 1.93%
Argentina Government International Bonds,
1.000%, Due 7/9/2029			227,491			77,433
0.500%, Due 7/9/2030D E			3,027,515			1,080,105
1.500%, Due 7/9/2035D E			21,212,784			6,519,633
Total Foreign Sovereign Obligations						7,677,171
Total Argentina (Cost $10,797,511)						7,677,171
Armenia - 1.42%
Foreign Sovereign Obligations - 1.42%
Armenia International Bonds, 3.600%, Due 2/2/2031B			1,232,000			964,964
Armenia Treasury Bonds,
6.500%, Due 4/29/2024, Series 3YR		AMD	1,575,000,000			3,832,278
7.000%, Due 4/29/2026, Series 5YR		AMD	385,000,000			853,363
Total Foreign Sovereign Obligations						5,650,605
Total Armenia (Cost $4,806,722)						5,650,605
Azerbaijan - 0.28% (Cost $1,119,293)
Credit-Linked Notes - 0.28%
Republic of Azerbaijan (Issuer Frontera Capital B.V.), 10.000%, Due 8/1/2023C		AZN	1,900,000			1,116,006
Benin - 0.83%
Foreign Sovereign Obligations - 0.83%
Benin Government International Bonds,
4.875%, Due 1/19/2032C		EUR	2,638,000			2,251,304
6.875%, Due 1/19/2052C		EUR	1,360,000			1,070,895
Total Foreign Sovereign Obligations						3,322,199
Total Benin (Cost $4,719,582)						3,322,199
Cameroon - 2.17%
Foreign Sovereign Obligations - 2.17%
Cameroon International Bonds,
5.950%, Due 7/7/2032B		EUR	3,250,000			2,691,225
5.950%, Due 7/7/2032C		EUR	7,172,000			5,938,914
Total Foreign Sovereign Obligations						8,630,139
Total Cameroon (Cost $11,992,911)						8,630,139

See accompanying notes

12

American Beacon Developing World Income Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount*			Fair Value
Costa Rica - 0.71% (Cost $2,440,157)
Foreign Sovereign Obligations - 0.71%
Costa Rica Government International Bonds, 9.200%, Due 2/21/2029B		$	2,500,000		$	2,818,750
Dominican Republic - 3.32%
Foreign Sovereign Obligations - 3.32%
Dominican Republic Central Bank Notes, 13.000%, Due 12/5/2025B		DOP	105,000,000			1,726,434
Dominican Republic International Bonds,
12.000%, Due 8/8/2025B		DOP	182,500,000			2,924,422
9.750%, Due 6/5/2026B		DOP	8,850,000			147,760
8.000%, Due 2/12/2027B		DOP	220,000,000			3,228,476
12.750%, Due 9/23/2029C		DOP	224,300,000			3,978,113
13.625%, Due 2/3/2033		DOP	69,750,000			1,229,075
Total Foreign Sovereign Obligations						13,234,280
Total Dominican Republic (Cost $14,359,074)						13,234,280
Ecuador - 2.62%
Foreign Sovereign Obligations - 2.62%
Ecuador Government International Bonds,
5.500%, Due 7/31/2030C D E			1,556,850			1,033,317
5.500%, Due 7/31/2030B D E			7,167,548			4,757,264
2.500%, Due 7/31/2035C D E			3,789,045			1,837,052
2.500%, Due 7/31/2035B D E			3,974,000			1,926,724
1.500%, Due 7/31/2040B D E			438,000			183,727
1.500%, Due 7/31/2040C D E			1,625,550			681,865
Total Foreign Sovereign Obligations						10,419,949
Total Ecuador (Cost $14,009,525)						10,419,949
Egypt - 3.93%
Foreign Sovereign Obligations - 3.93%
Egypt Government Bonds,
14.483%, Due 4/6/2026, Series 5YR		EGP	6,500,000			178,218
15.700%, Due 11/7/2027, Series 10YR		EGP	10,000,000			278,650
Egypt Government International Bonds,
7.500%, Due 1/31/2027B			736,000			662,400
5.625%, Due 4/16/2030B		EUR	2,894,000			2,209,000
6.375%, Due 4/11/2031B		EUR	5,743,000			4,376,347
7.903%, Due 2/21/2048B			1,666,000			1,105,824
8.875%, Due 5/29/2050B			3,306,000			2,357,165
7.500%, Due 2/16/2061B			6,900,000			4,468,992
Total Foreign Sovereign Obligations						15,636,596
Total Egypt (Cost $15,601,708)						15,636,596
El Salvador - 1.45%
Foreign Sovereign Obligations - 1.45%
El Salvador Government International Bonds,
5.875%, Due 1/30/2025B			325,000			234,503
6.375%, Due 1/18/2027B			3,124,000			1,710,854
8.625%, Due 2/28/2029B			941,000			498,288
8.250%, Due 4/10/2032B			1,287,000			656,370
7.625%, Due 2/1/2041B			449,000			210,989
7.125%, Due 1/20/2050B			2,395,000			1,108,336
9.500%, Due 7/15/2052B			2,600,000			1,355,862
Total Foreign Sovereign Obligations						5,775,202
Total El Salvador (Cost $7,322,057)						5,775,202
Ethiopia - 0.80% (Cost $3,780,061)
Foreign Sovereign Obligations - 0.80%
Ethiopia International Bonds, 6.625%, Due 12/11/2024B			4,743,000			3,202,758

See accompanying notes

13

American Beacon Developing World Income Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount*			Fair Value
Gabon - 2.55%
Foreign Sovereign Obligations - 2.55%
Gabon Government International Bonds,
6.950%, Due 6/16/2025B		$	3,090,000		$	2,994,581
6.625%, Due 2/6/2031B			7,007,000			5,880,275
7.000%, Due 11/24/2031B			1,505,000			1,266,403
Total Foreign Sovereign Obligations						10,141,259
Total Gabon (Cost $11,166,482)						10,141,259
Georgia - 1.27%
Foreign Sovereign Obligations - 1.27%
Georgia Treasury Bonds,
8.000%, Due 2/4/2023, Series 12Y		GEL	5,560,000			2,097,356
9.375%, Due 10/6/2024, Series 2 YR		GEL	1,400,000			530,870
8.125%, Due 1/28/2026, Series 5Y		GEL	6,540,000			2,429,370
Total Foreign Sovereign Obligations						5,057,596
Total Georgia (Cost $4,337,823)						5,057,596
Ghana - 2.74%
Credit-Linked Notes - 0.02%
Ghana Promissory Notes (Issuer Saderea DAC), 12.500%, Due 11/30/2026B			139,548			61,052
Foreign Corporate Obligations - 0.39%
Kosmos Energy Ltd., 7.500%, Due 3/1/2028C			1,842,000			1,573,298
Foreign Sovereign Obligations - 2.33%
Ghana Government Bonds,
16.500%, Due 2/6/2023, Series 5Y		GHS	13,300,000			1,105,933
19.250%, Due 12/18/2023		GHS	3,580,000			247,540
17.700%, Due 3/18/2024		GHS	4,200,000			272,066
19.750%, Due 4/15/2024, Series 5YR		GHS	1,000,000			65,159
21.000%, Due 1/27/2025		GHS	1,680,000			97,749
19.250%, Due 6/23/2025		GHS	23,500,000			1,238,671
19.000%, Due 11/2/2026, Series 10Y		GHS	18,612,000			806,389
19.250%, Due 1/18/2027		GHS	19,750,000			845,190
Ghana Government International Bonds,
7.750%, Due 4/7/2029C			1,641,000			607,170
10.750%, Due 10/14/2030B			904,000			629,307
8.125%, Due 3/26/2032B			5,956,000			2,188,830
7.875%, Due 2/11/2035B			654,000			239,953
8.950%, Due 3/26/2051B			220,000			79,640
8.750%, Due 3/11/2061B			1,679,000			605,011
Ghana Treasury Notes, 17.250%, Due 7/31/2023, Series 2Y		GHS	3,300,000			245,185
Total Foreign Sovereign Obligations						9,273,793
Total Ghana (Cost $22,972,214)						10,908,143
Honduras - 0.03% (Cost $109,246)
Foreign Sovereign Obligations - 0.03%
Honduras Government International Bonds, 5.625%, Due 6/24/2030B			159,000			129,098
Iraq - 2.19%
Foreign Sovereign Obligations - 2.19%
Iraq International Bonds,
6.752%, Due 3/9/2023B			3,385,000			3,360,750
5.800%, Due 1/15/2028B			5,784,375			5,352,976
Total Foreign Sovereign Obligations						8,713,726
Total Iraq (Cost $8,627,949)						8,713,726

See accompanying notes

14

American Beacon Developing World Income Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount*			Fair Value
Ireland - 0.52% (Cost $2,096,626)
Foreign Sovereign Obligations - 0.52%
Angola Via Avenir Issuer II Ireland DAC, 6.927%, Due 02/19/2027B		$	2,217,857		$	2,079,241
Ivory Coast - 3.38%
Foreign Sovereign Obligations - 3.38%
Ivory Coast Government International Bonds,
5.250%, Due 3/22/2030B		EUR	1,721,000			1,578,738
5.875%, Due 10/17/2031B		EUR	1,530,000			1,397,206
4.875%, Due 1/30/2032B		EUR	6,825,000			5,807,478
6.875%, Due 10/17/2040B		EUR	2,028,000			1,682,896
6.625%, Due 3/22/2048B		EUR	3,800,000			2,978,120
Total Foreign Sovereign Obligations						13,444,438
Total Ivory Coast (Cost $15,434,133)						13,444,438
Jordan - 0.36% (Cost $1,369,795)
Foreign Sovereign Obligations - 0.36%
Jordan Government International Bonds, 5.850%, Due 7/7/2030B			1,552,000			1,428,563
Kazakhstan - 3.79%
Foreign Corporate Obligations - 0.20%
Development Bank of Kazakhstan JSC, 8.950%, Due 5/4/2023B		KZT	387,500,000			815,460
Foreign Sovereign Obligations - 3.59%
Kazakhstan Government Bonds,
5.300%, Due 4/26/2023, Series 12YR		KZT	88,600,000			187,956
5.000%, Due 5/15/2023, Series 11Y		KZT	1,568,819,000			3,308,231
9.500%, Due 1/30/2024, Series 7Y		KZT	284,000,000			583,154
8.050%, Due 5/20/2024, Series 15Y		KZT	1,040,000,000			2,063,436
16.700%, Due 1/13/2025		KZT	149,000,000			328,582
10.750%, Due 2/11/2025, Series 3 YR		KZT	240,000,000			477,738
10.500%, Due 8/4/2026, Series 5Y		KZT	500,000,000			945,384
13.900%, Due 9/16/2026, Series 4YR		KZT	280,000,000			565,572
9.000%, Due 3/6/2027, Series 10Y		KZT	1,000,000,000			1,777,666
10.120%, Due 2/17/2034, Series 13Y		KZT	400,000,000			776,683
Kazakhstan Treasury Bills,
14.434%, Due 8/12/2023, Series 365D		KZT	1,450,000,000			2,878,579
16.627%, Due 1/20/2024		KZT	201,000,000			373,149
Total Foreign Sovereign Obligations						14,266,130
Total Kazakhstan (Cost $16,932,485)						15,081,590
Kenya - 3.93%
Foreign Sovereign Obligations - 3.93%
Kenya Government International Bonds,
7.250%, Due 2/28/2028B			775,000			683,255
8.000%, Due 5/22/2032B			1,484,000			1,289,329
6.300%, Due 1/23/2034B			2,631,000			2,023,239
8.250%, Due 2/28/2048B			4,588,000			3,593,872
Kenya Infrastructure Bonds,
12.000%, Due 9/18/2023, Series 12YR		KES	23,900,000			191,264
11.000%, Due 12/2/2024, Series 9YR		KES	25,000,000			195,534
12.500%, Due 5/12/2025, Series 9YR		KES	22,700,000			181,916
10.200%, Due 5/25/2026, Series 6Y		KES	31,000,000			232,704
11.000%, Due 10/12/2026, Series 12YR		KES	43,467,948			332,267
13.215%, Due 11/27/2028, Series 6 YR		KES	124,600,000			975,007
10.850%, Due 4/2/2029, Series 9Y		KES	24,550,000			186,011
12.500%, Due 1/10/2033, Series 15YR		KES	631,000,000			4,959,449
11.750%, Due 10/8/2035, Series 16YR		KES	112,000,000			819,806
Total Foreign Sovereign Obligations						15,663,653
Total Kenya (Cost $17,994,552)						15,663,653

See accompanying notes

15

American Beacon Developing World Income Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount*			Fair Value
Kyrgyzstan - 1.55%
Credit-Linked Notes - 1.55%
Republic of Kyrgyzstan (Issuer Frontera Capital B.V.),
10.500%, Due 9/24/2024C		KGS	150,000,000		$	1,713,987
8.000%, Due 5/26/2025		KGS	70,000,000			700,406
6.000%, Due 9/19/2025C		KGS	120,500,000			1,118,279
12.000%, Due 2/7/2028C		KGS	95,000,000			963,233
Republic of Kyrgyzstan (Issuer Zambezi B.V.), 10.000%, Due 4/13/2028C		KGS	180,000,000			1,659,176
Total Credit-Linked Notes						6,155,081
Total Kyrgyzstan (Cost $7,942,845)						6,155,081
Malawi - 0.86%
Credit-Linked Notes - 0.86%
Republic of Malawi (Issuer Frontera Capital B.V.),
12.500%, Due 5/21/2025C		$	1,050,000			662,862
18.500%, Due 8/15/2026C			2,700,000			1,884,207
13.500%, Due 6/18/2027C			700,000			442,998
13.500%, Due 9/3/2027			650,000			422,755
Total Credit-Linked Notes						3,412,822
Total Malawi (Cost $5,024,046)						3,412,822
Maldives - 0.61% (Cost $2,740,144)
Foreign Sovereign Obligations - 0.61%
Maldives Sukuk Issuance Ltd., 9.875%, Due 4/8/2026C			2,827,000			2,426,131
Mongolia - 1.43%
Credit-Linked Notes - 1.05%
Republic of Mongolia (Issuer Frontera Capital B.V.),
7.500%, Due 10/25/2024C		MNT	11,287,921,348			2,916,291
14.000%, Due 4/22/2025C E		MNT	4,500,000,000			1,267,635
Total Credit-Linked Notes						4,183,926
Foreign Sovereign Obligations - 0.38%
Mongolia Government International Bonds,
8.650%, Due 1/19/2028C			223,000			232,477
4.450%, Due 7/7/2031B			1,581,000			1,296,505
Total Foreign Sovereign Obligations						1,528,982
Total Mongolia (Cost $7,039,150)						5,712,908
Mozambique - 4.50%
Credit-Linked Notes - 1.40%
Republic of Mozambique (Issuer ICBC Standard Bank PLC),
Due 2/28/2023C E F		MZN	90,000,000			1,370,078
Due 3/26/2025E F		MZN	90,500,000			1,395,222
17.000%, Due 5/11/2025		MZN	100,000,000			1,547,178
14.500%, Due 11/13/2025		MZN	40,000,000			591,147
14.500%, Due 2/11/2027E		MZN	46,752,000			654,108
Total Credit-Linked Notes						5,557,733
Foreign Sovereign Obligations - 3.10%
Mozambique International Bonds,
5.000%, Due 9/15/2031B D E			13,179,000			10,497,337
5.000%, Due 9/15/2031C D E			2,353,000			1,874,212
Total Foreign Sovereign Obligations						12,371,549
Total Mozambique (Cost $19,071,731)						17,929,282

See accompanying notes

16

American Beacon Developing World Income Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount*			Fair Value
Netherlands - 0.78%
Foreign Corporate Obligations - 0.78%
BOI Finance B.V., 7.500%, Due 2/16/2027C		EUR	1,571,000		$	1,426,108
First Bank of Nigeria Ltd. Via FBN Finance Co. B.V., 8.625%, Due 10/27/2025C		$	829,000			778,531
IHS Netherlands Holdco B.V., 8.000%, Due 9/18/2027C			1,015,000			914,819
Total Foreign Corporate Obligations						3,119,458
Total Netherlands (Cost $3,642,314)						3,119,458
Nicaragua - 0.27% (Cost $1,159,310)
Credit-Linked Notes - 0.27%
Republic of Nicaragua (Issuer Zambezi B.V.), 7.000%, Due 4/8/2024C E			1,159,400			1,072,689
Nigeria - 3.51%
Foreign Corporate Obligations - 0.63%
Access Bank PLC, 6.125%, Due 9/21/2026C			1,007,000			873,673
SEPLAT Energy PLC, 7.750%, Due 4/1/2026C			869,000			756,030
United Bank for Africa PLC, 6.750%, Due 11/19/2026C			997,000			892,315
Total Foreign Corporate Obligations						2,522,018
Foreign Sovereign Obligations - 2.88%
Nigeria Government Bonds,
12.500%, Due 1/22/2026, Series 10YR		NGN	856,000,000			1,869,623
16.288%, Due 3/17/2027, Series 10YR		NGN	290,000,000			692,023
Nigeria Government International Bonds,
7.625%, Due 11/21/2025B			1,590,000			1,459,859
8.375%, Due 3/24/2029B			827,000			687,558
8.747%, Due 1/21/2031B			1,373,000			1,116,238
7.875%, Due 2/16/2032B			3,942,000			2,966,355
7.375%, Due 9/28/2033B			2,365,000			1,685,062
Nigeria OMO Bills,
14.101%, Due 2/21/2023		NGN	133,000,000			288,152
14.088%, Due 3/14/2023, Series 361D		NGN	133,000,000			286,737
12.087%, Due 6/6/2023		NGN	60,000,000			127,440
Nigeria Treasury Bills, 15.298%, Due 9/7/2023		NGN	133,000,000			283,683
Total Foreign Sovereign Obligations						11,462,730
Total Nigeria (Cost $16,343,765)						13,984,748
Pakistan - 1.11%
Foreign Sovereign Obligations - 1.11%
Pakistan Government International Bonds,
6.875%, Due 12/5/2027B			2,491,000			1,046,220
7.375%, Due 4/8/2031B			6,565,000			2,729,727
7.375%, Due 4/8/2031C			1,180,000			490,644
8.875%, Due 4/8/2051B			375,000			152,588
Total Foreign Sovereign Obligations						4,419,179
Total Pakistan (Cost $9,701,978)						4,419,179
Papua New Guinea - 0.74% (Cost $3,245,521)
Foreign Sovereign Obligations - 0.74%
Papua New Guinea Government International Bonds, 8.375%, Due 10/4/2028B			3,251,000			2,965,387
Paraguay - 1.82%
Credit-Linked Notes - 1.82%
Municipalidad de Asuncion (Issuer Frontera Capital Group B.V.), 12.000%, Due 11/22/2032		PYG	16,600,000,000			2,302,432
Republic of Paraguay (Issuer Frontera Capital B.V.),
9.000%, Due 2/13/2026C		PYG	13,700,000,000			1,788,435
9.850%, Due 2/14/2031C		PYG	13,700,000,000			1,685,310

See accompanying notes

17

American Beacon Developing World Income Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount*			Fair Value
Paraguay - 1.82% (continued)
Credit-Linked Notes - 1.82% (continued)
Republic of Paraguay (Issuer Zambezi B.V.), 11.000%, Due 3/23/2027C		$	2,000,000		$	1,481,789
Total Credit-Linked Notes						7,257,966
Total Paraguay (Cost $8,378,137)						7,257,966
Republic of Mauritius - 0.19% (Cost $838,000)
Foreign Corporate Obligations - 0.19%
Axian Telecom, 7.375%, Due 2/16/2027C			838,000			772,008
Rwanda - 0.62%
Foreign Sovereign Obligations - 0.62%
Rwanda International Government Bonds,
5.500%, Due 8/9/2031B			1,400,000			1,065,495
5.500%, Due 8/9/2031C			1,821,000			1,385,905
Total Foreign Sovereign Obligations						2,451,400
Total Rwanda (Cost $3,063,014)						2,451,400
Senegal - 1.31%
Foreign Sovereign Obligations - 1.31%
Senegal Government International Bonds,
5.375%, Due 6/8/2037B		EUR	843,000			640,843
6.750%, Due 3/13/2048B			6,128,000			4,574,920
Total Foreign Sovereign Obligations						5,215,763
Total Senegal (Cost $6,349,727)						5,215,763
Serbia - 0.69%
Foreign Sovereign Obligations - 0.69%
Serbia International Bonds,
1.500%, Due 6/26/2029B		EUR	1,800,000			1,477,907
2.050%, Due 9/23/2036B		EUR	1,900,000			1,256,454
Total Foreign Sovereign Obligations						2,734,361
Total Serbia (Cost $2,528,766)						2,734,361
South Africa - 0.19% (Cost $1,000,000)
Foreign Corporate Obligations - 0.19%
Liquid Telecommunications Financing PLC, 5.500%, Due 9/4/2026C			1,000,000			762,780
Sri Lanka - 0.72%
Foreign Sovereign Obligations - 0.72%
Sri Lanka Government International Bonds,
6.200%, Due 5/11/2027B G			3,510,000			1,189,617
6.750%, Due 4/18/2028B G			1,342,000			454,469
7.850%, Due 3/14/2029B G			871,000			295,010
7.550%, Due 3/28/2030B G			2,713,000			918,872
Total Foreign Sovereign Obligations						2,857,968
Total Sri Lanka (Cost $5,360,380)						2,857,968
Supranational – 3.00%
Foreign Sovereign Obligations – 3.00%
European Bank for Reconstruction & Development,
10.000%, Due 2/28/2023			1,950,000			1,624,233
10.100%, Due 5/6/2023			750,000			867,637
10.500%, Due 5/11/2023			1,233,333			1,481,185
14.000%, Due 6/14/2023			800,000			697,873
15.000%, Due 9/21/2024			1,200,000			1,127,612

See accompanying notes

18

American Beacon Developing World Income Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount*			Fair Value
Supranational – 3.00% (continued)
Foreign Sovereign Obligations – 3.00% (continued)
European Bank for Reconstruction & Development (continued),
14.750%, Due 2/7/2025		$	700,000		$	700,000
7.400%, Due 12/7/2025B		VND	29,495,000,000			1,232,758
International Finance Corp.,
11.000%, Due 6/28/2024			600,000			457,199
11.000%, Due 10/18/2024		UZS	12,000,000,000			1,006,439
6.000%, Due 1/15/2027		AZN	4,700,000			2,760,646
Total Foreign Sovereign Obligations						11,955,582
Total Supranational (Cost $12,308,191)						11,955,582
Suriname - 0.27% (Cost $1,411,375)
Foreign Sovereign Obligations - 0.27%
Suriname Government International Bonds, 9.250%, Due 10/26/2026B G			1,400,000			1,089,200
Tajikistan - 0.96%
Credit-Linked Notes - 0.02%
Republic of Tajikistan (Issuer Frontera Capital B.V.), 10.780%, Due 2/15/2023C			86,538			78,792
Foreign Sovereign Obligations - 0.94%
Tajikistan International Bonds, 7.125%, Due 9/14/2027B			4,870,000			3,741,095
Total Tajikistan (Cost $4,646,396)						3,819,887
Togo - 0.16% (Cost $739,299)
Foreign Corporate Obligations - 0.16%
Ecobank Transnational, Inc., 8.750%, Due 6/17/2031, (5 yr. CMT + 8.211%)A C			744,000			642,518
Trinidad and Tobago - 0.29% (Cost $1,095,279)
Foreign Corporate Obligations - 0.29%
Heritage Petroleum Co. Ltd., 9.000%, Due 8/12/2029C			1,096,000			1,145,430
Tunisia - 1.69%
Foreign Sovereign Obligations - 1.69%
Banque Centrale de Tunisie International Bond,
6.750%, Due 10/31/2023B		EUR	2,060,000			1,831,263
5.625%, Due 2/17/2024B		EUR	800,000			652,134
5.750%, Due 1/30/2025B			814,000			528,709
6.375%, Due 7/15/2026C		EUR	100,000			65,023
6.375%, Due 7/15/2026B		EUR	5,604,000			3,643,859
Total Foreign Sovereign Obligations						6,720,988
Total Tunisia (Cost $8,695,717)						6,720,988
Uganda - 3.51%
Foreign Sovereign Obligations - 3.51%
Uganda Government Bonds,
14.000%, Due 1/18/2024		UGX	8,571,500,000			2,360,954
19.500%, Due 12/18/2025, Series 10YR		UGX	4,000,000,000			1,230,336
16.000%, Due 5/6/2027		UGX	2,500,000,000			701,924
14.250%, Due 8/23/2029		UGX	2,200,000,000			580,183
16.000%, Due 11/14/2030		UGX	6,940,000,000			1,945,205
17.000%, Due 4/3/2031, Series 15YR		UGX	7,850,200,000			2,319,730
14.250%, Due 6/22/2034		UGX	4,925,000,000			1,249,088
16.250%, Due 11/8/2035		UGX	7,800,000,000			2,181,746
17.500%, Due 11/1/2040		UGX	4,800,000,000			1,412,989
Total Foreign Sovereign Obligations						13,982,155
Total Uganda (Cost $14,047,902)						13,982,155

See accompanying notes

19

American Beacon Developing World Income Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount*			Fair Value
Ukraine - 0.49%
Foreign Sovereign Obligations - 0.49%
Ukraine Government Bonds,
10.000%, Due 8/23/2023, Series 10YRK		UAH	14,500,000		$	274,483
15.840%, Due 2/26/2025K		UAH	102,000,000			1,690,345
Total Foreign Sovereign Obligations						1,964,828
Total Ukraine (Cost $4,437,286)						1,964,828
United Republic of Tanzania - 0.42% (Cost $1,810,908)
Foreign Corporate Obligations - 0.42%
HTA Group Ltd., 7.000%, Due 12/18/2025C		$	1,800,000			1,692,000
United States - 0.84%
Corporate Obligations - 0.84%
Citigroup Global Markets Holdings, Inc., 12.500%, Due 1/26/2026B		NGN	1,060,000,000			2,300,597
Sagicor Financial Co. Ltd., 5.300%, Due 5/13/2028C			1,081,000			1,049,997
Total Corporate Obligations						3,350,594
Total United States (Cost $3,382,744)						3,350,594
Uruguay - 3.11%
Foreign Sovereign Obligations - 3.11%
Uruguay Government International Bonds,
8.250%, Due 5/21/2031		UYU	81,798,000			1,898,962
3.875%, Due 7/2/2040H		UYU	384,689,335			10,478,022
Total Foreign Sovereign Obligations						12,376,984
Total Uruguay (Cost $11,079,152)						12,376,984
Uzbekistan - 2.07%
Foreign Sovereign Obligations - 2.07%
Uzbekistan International Bonds,
14.500%, Due 11/25/2023B		UZS	43,810,000,000			3,791,884
14.000%, Due 7/19/2024B		UZS	20,670,000,000			1,739,691
14.000%, Due 7/19/2024C		UZS	32,120,000,000			2,703,381
Total Foreign Sovereign Obligations						8,234,956
Total Uzbekistan (Cost $8,817,050)						8,234,956
Venezuela - 0.02% (Cost $269,875)
Foreign Corporate Obligations - 0.02%
Petroleos de Venezuela SA, 6.000%, Due 5/16/2024B G			1,250,000			60,938
Zambia - 5.30%
Credit-Linked Notes - 1.21%
Republic of Zambia (Issuer ICBC Standard Bank PLC), 11.000%, Due 1/27/2026C		ZMW	133,161,509			4,832,305
Foreign Corporate Obligations - 0.44%
First Quantum Minerals Ltd.,
6.875%, Due 3/1/2026B			1,035,000			999,466
6.875%, Due 10/15/2027B			764,000			740,602
Total Foreign Corporate Obligations						1,740,068
Foreign Sovereign Obligations - 3.65%
Zambia Government Bonds,
10.000%, Due 12/27/2024, Series 3Y		ZMW	11,000,000			478,326
12.000%, Due 4/23/2025, Series 7YR		ZMW	7,800,000			333,698
11.000%, Due 1/25/2026, Series 5Y		ZMW	114,100,000			4,307,460
12.000%, Due 6/17/2026		ZMW	12,000,000			447,478
13.000%, Due 8/29/2026, Series 10YR		ZMW	64,500,000			2,432,422

See accompanying notes

20

American Beacon Developing World Income Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount*			Fair Value
Zambia - 5.30% (continued)
Foreign Sovereign Obligations - 3.65% (continued)
13.000%, Due 12/18/2027, Series 10YR		ZMW	24,795,000		$	838,128
13.000%, Due 12/17/2028, Series 10YR		ZMW	30,000,000			937,113
13.000%, Due 1/25/2031, Series 10Y		ZMW	3,800,000			102,792
Zambia Government International Bonds,
8.500%, Due 4/14/2024B G		$	642,000			321,077
8.970%, Due 7/30/2027B G			8,757,000			4,348,394
Total Foreign Sovereign Obligations						14,546,888
Total Zambia (Cost $22,888,546)						21,119,261
	Shares
SHORT-TERM INVESTMENTS - 6.15% (Cost $24,495,667)
Investment Companies - 6.15%
American Beacon U.S. Government Money Market Select Fund, 4.19%I J			24,495,667			24,495,667
TOTAL INVESTMENTS - 94.46% (Cost $436,122,991)						376,179,314
OTHER ASSETS, NET OF LIABILITIES - 5.54%						22,054,607
TOTAL NET ASSETS - 100.00%					$	398,233,921
Percentages are stated as a percent of net assets. *In U.S. Dollars unless otherwise noted.

^A Variable, floating, or adjustable rate securities with an interest rate that changes periodically. Rates are periodically reset with rates that are based on a predetermined benchmark such as a widely followed interest rate such as T-bills, SOFR, LIBOR or PRIME plus a fixed spread. The interest rate disclosed reflects the rate in effect on January 31, 2023.

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

^C Security exempt from registration under the Securities Act of 1933. These securities may be resold to qualified institutional buyers pursuant to Rule 144A. At the period end, the value of these securities amounted to $71,079,328 or 17.85% of net assets. The Fund has no right to demand registration of these securities.

^D Step Up/Down - A zero coupon bond that converts to a fixed rate or variable interest rate at a designated future date. The rate disclosed represents the coupon rate at January 31, 2023. The maturity date disclosed represents the final maturity date.

^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 Zero coupon bond.

^G Default Security. At period end, the amount of securities in default was $8,677,577 or 2.18% of net assets.

^H Inflation-Indexed Note.

^I 7-day yield.

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

^K Fair valued pursuant to procedures approved by the Board of Trustees. At period end, the value of these securities amounted to $1,964,828 or 0.49% of net assets.

CMT - Constant Maturity Treasury.

DAC - Designated Activity Company.

JSC - Joint Stock Company

LIBOR - London Interbank Offered Rate.

PLC - Public Limited Company.

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

SOFR - Secured Overnight Financing Rate.

See accompanying notes

21

American Beacon Developing World Income Fund^SM

Schedule of Investments

January 31, 2023

Forward Foreign Currency Contracts Open on January 31, 2023:

Currency Purchased*		Currency Sold*		Settlement Date		Counterparty	Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
USD	484,162	KZT	508,043		2/23/2023	BRC	$	-	$	(23,881	)	$	(23,881	)
USD	2,188,590	EUR	2,184,595		4/19/2023	HSBC		3,995		-			3,995
EUR	695,820	USD	698,129		4/19/2023	JPM		-		(2,309	)		(2,309	)
USD	18,844,587	EUR	18,975,172		4/19/2023	MLI		-		(130,585	)		(130,585	)
USD	27,028,523	EUR	27,035,632		3/17/2023	SSB		-		(7,109	)		(7,109	)
							$	3,995	$	(163,884	)	$	(159,889	)

* All values denominated in USD.

Glossary:
Counterparty Abbreviations:
BRC	Barclays Bank PLC
HSBC	Hongkong and Shanghai Banking Corporation Ltd.
JPM	JPMorgan Chase Bank N.A.
MLI	Merrill Lynch International
SSB	State Street Bank & Trust Co.
Currency Abbreviations:
AMD	Armenian Dram
AOA	Angolan Kwanza
AZN	Azerbaijan Manat
DOP	Dominican Peso
EGP	Egyptian Pound
EUR	Euro
GEL	Georgian Lari
GHS	Ghanaian Cedi
KES	Kenyan Shilling
KGS	Kyrgyzstani Som
KZT	Kazakhstani Tenge
MNT	Mongolia Tugrug
MZN	Mozambique Metical
NGN	Nigerian Naira
PYG	Paraguayan guarani
UAH	Ukrainian Hryvnia
UGX	Ugandan Shilling
USD	United States Dollar
UYU	Uruguayan Peso
UZS	Uzbekistani Som
VND	Vietnamese Dong
ZMW	Zambian Kwacha

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of January 31, 2023, the investments were classified as described below:

Developing World Income Fund	Level 1		Level 2		Level 3		Total
Assets
Credit-Linked Notes
Algeria	$	-	$	989,778	$	-	$	989,778
Angola		-		789,506		-		789,506
Azerbaijan		-		1,116,006		-		1,116,006
Ghana		-		61,052		-		61,052
Kyrgyzstan		-		6,155,081		-		6,155,081
Malawi		-		3,412,822		-		3,412,822
Mongolia		-		4,183,926		-		4,183,926
Mozambique		-		5,557,733		-		5,557,733

See accompanying notes

22

American Beacon Developing World Income Fund^SM

Schedule of Investments

January 31, 2023

Developing World Income Fund	Level 1		Level 2		Level 3		Total
Credit-Linked Notes (continued)
Nicaragua	$	-	$	1,072,689	$	-	$	1,072,689
Paraguay		-		7,257,966		-		7,257,966
Tajikistan		-		78,792		-		78,792
Zambia		-		4,832,305		-		4,832,305
Foreign Sovereign Obligations
Angola		-		18,368,149		-		18,368,149
Argentina		-		7,677,171		-		7,677,171
Armenia		-		5,650,605		-		5,650,605
Benin		-		3,322,199		-		3,322,199
Cameroon		-		8,630,139		-		8,630,139
Costa Rica		-		2,818,750		-		2,818,750
Dominican Republic		-		13,234,280		-		13,234,280
Ecuador		-		10,419,949		-		10,419,949
Egypt		-		15,636,596		-		15,636,596
El Salvador		-		5,775,202		-		5,775,202
Ethiopia		-		3,202,758		-		3,202,758
Gabon		-		10,141,259		-		10,141,259
Georgia		-		5,057,596		-		5,057,596
Ghana		-		9,273,793		-		9,273,793
Honduras		-		129,098		-		129,098
Iraq		-		8,713,726		-		8,713,726
Ireland		-		2,079,241		-		2,079,241
Ivory Coast		-		13,444,438		-		13,444,438
Jordan		-		1,428,563		-		1,428,563
Kazakhstan		-		14,266,130		-		14,266,130
Kenya		-		15,663,653		-		15,663,653
Maldives		-		2,426,131		-		2,426,131
Mongolia		-		1,528,982		-		1,528,982
Mozambique		-		12,371,549		-		12,371,549
Nigeria		-		11,462,730		-		11,462,730
Pakistan		-		4,419,179		-		4,419,179
Papua New Guinea		-		2,965,387		-		2,965,387
Rwanda		-		2,451,400		-		2,451,400
Senegal		-		5,215,763		-		5,215,763
Serbia		-		2,734,361		-		2,734,361
Sri Lanka		-		2,857,968		-		2,857,968
Supranational		-		11,955,582		-		11,955,582
Suriname		-		1,089,200		-		1,089,200
Tajikistan		-		3,741,095		-		3,741,095
Tunisia		-		6,720,988		-		6,720,988
Uganda		-		13,982,155		-		13,982,155
Ukraine		-		-		1,964,828		1,964,828
Uruguay		-		12,376,984		-		12,376,984
Uzbekistan		-		8,234,956		-		8,234,956
Zambia		-		14,546,888		-		14,546,888
Foreign Corporate Obligations
Ghana		-		1,573,298		-		1,573,298
Kazakhstan		-		815,460		-		815,460
Netherlands		-		3,119,458		-		3,119,458
Nigeria		-		2,522,018		-		2,522,018
Republic of Mauritius		-		772,008		-		772,008
South Africa		-		762,780		-		762,780
Togo		-		642,518		-		642,518
Trinidad and Tobago		-		1,145,430		-		1,145,430
United Republic of Tanzania		-		1,692,000		-		1,692,000
Venezuela		-		60,938		-		60,938
Zambia		-		1,740,068		-		1,740,068

See accompanying notes

23

American Beacon Developing World Income Fund^SM

Schedule of Investments

January 31, 2023

Developing World Income Fund	Level 1		Level 2			Level 3		Total
Corporate Obligations
United States	$	-	$	3,350,594		$	-	$	3,350,594
Short-Term Investments		24,495,667		-			-		24,495,667
Total Investments in Securities - Assets	$	24,495,667	$	349,718,819		$	1,964,828	$	376,179,314
Financial Derivative Instruments - Assets
Forward Foreign Currency Contracts	$	-	$	3,995		$	-	$	3,995
Total Financial Derivative Instruments - Assets	$	-	$	3,995		$	-	$	3,995
Financial Derivative Instruments - Liabilities
Forward Foreign Currency Contracts	$	-	$	(163,884	)	$	-	$	(163,884	)
Total Financial Derivative Instruments - Liabilities	$	-	$	(163,884	)	$	-	$	(163,884	)

U.S. GAAP requires transfers between all levels to/from level 3 be disclosed. During the year ended January 31, 2023, there were transfers from Level 2 into Level 3 totaling $1,964,828.

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 year:

Security Type	Balance as of 1/31/2022		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 1/31/2023		Unrealized Appreciation (Depreciation) at Year End*
Foreign Sovereign Obligations	$	-	$	-	$	-	$	-	$	-	$	-	$	1,964,828	$	-	$	1,964,828	$	(2,472,458	)

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

For the year ended January 31, 2023, two foreign sovereign obligations were fair valued at $1,964,828 by the Fair Value Committee. Due to severe disruptions in the market brought about by the Russian attack on Ukraine, the Fair Value Committee voted to apply a 15% liquidity discount to the daily pricing vendor fair value prices, thus the foreign sovereign obligations have been classified as Level 3 due to the use of significant unobservable inputs.

See accompanying notes

24

American Beacon NIS Core Plus Bond Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 27.27%
Basic Materials - 0.37%
Mining - 0.37%
Freeport-McMoRan, Inc., 4.125%, Due 3/1/2028		$	25,000		$	23,709
Communications - 1.79%
Internet - 0.46%
Expedia Group, Inc., 4.625%, Due 8/1/2027			30,000			29,486
Media - 1.02%
CCO Holdings LLC/CCO Holdings Capital Corp., 5.000%, Due 2/1/2028A			12,000			11,197
Charter Communications Operating LLC/Charter Communications Operating Capital,
4.200%, Due 3/15/2028			15,000			14,244
6.384%, Due 10/23/2035			10,000			10,185
3.500%, Due 6/1/2041			5,000			3,500
Gray Television, Inc., 7.000%, Due 5/15/2027A			15,000			13,646
Sirius XM Radio, Inc., 4.000%, Due 7/15/2028A			15,000			13,351
						66,123
Telecommunications - 0.31%
Verizon Communications, Inc., 2.550%, Due 3/21/2031			10,000			8,494
3.550%, Due 3/22/2051			15,000			11,555
						20,049
Total Communications						115,658
Consumer, Cyclical - 4.38%
Airlines - 2.79%
American Airlines Pass-Through Trust,
3.575%, Due 7/15/2029, 2016 1 AA			20,719			18,736
3.350%, Due 4/15/2031, 2017 2 AA			11,347			10,036
3.950%, Due 1/11/2032, 2021 1 B			14,325			12,047
American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.500%, Due 4/20/2026A			25,000			24,500
Delta Air Lines, Inc./SkyMiles IP Ltd., 4.750%, Due 10/20/2028A			10,000			9,729
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., 6.500%, Due 6/20/2027A			18,000			18,186
Spirit Airlines Pass-Through Trust, 3.375%, Due 8/15/2031, Series AA			15,076			13,294
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., 8.000%, Due 9/20/2025A			40,000			40,750
US. Airways Pass-Through Trust,
5.900%, Due 4/1/2026, 2012 1A			15,837			15,406
4.625%, Due 12/3/2026, 2012 1A			6,440			5,955
US Airways Pass-Through Trust, 3.950%, Due 5/15/2027, 2013 1A			13,315			12,416
						181,055
Auto Manufacturers - 0.35%
Ford Motor Credit Co. LLC, 4.271%, Due 1/9/2027			14,000			13,185
General Motors Financial Co., Inc., 4.300%, Due 4/6/2029			10,000			9,330
						22,515
Entertainment - 0.48%
SeaWorld Parks & Entertainment, Inc., 8.750%, Due 5/1/2025A			30,000			30,785
Household Products/Wares - 0.19%
Newell Brands, Inc., 5.750%, Due 4/1/2046			15,000			12,468
Leisure Time - 0.24%
Carnival Corp., 10.500%, Due 2/1/2026A			15,000			15,689
Retail - 0.33%
Lithia Motors, Inc., 3.875%, Due 6/1/2029A			25,000			21,242
Total Consumer, Cyclical						283,754

See accompanying notes

25

American Beacon NIS Core Plus Bond Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 27.27% (continued)
Consumer, Non-Cyclical - 2.20%
Commercial Services - 0.70%
Duke University, 2.757%, Due 10/1/2050, Series 2020		$	10,000		$	6,801
Global Payments, Inc., 3.200%, Due 8/15/2029			15,000			13,291
Massachusetts Institute of Technology, 4.678%, Due 7/1/2114			10,000			9,459
University of Chicago, 3.000%, Due 10/1/2052			5,000			3,654
University of Notre Dame du Lac,
3.438%, Due 2/15/2045, Series 2015			5,000			4,246
3.394%, Due 2/15/2048, Series 2017			10,000			8,303
						45,754
Food - 0.38%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC, 5.875%, Due 2/15/2028A			25,000			24,438
Health Care - Services - 1.00%
AdventHealth Obligated Group, 2.795%, Due 11/15/2051, Series E			10,000			6,815
Baylor Scott & White Holdings, 1.777%, Due 11/15/2030, Series 2021			5,000			3,966
Cedars-Sinai Health System, 2.288%, Due 8/15/2031, Series 2021			10,000			8,341
Centene Corp., 3.375%, Due 2/15/2030			15,000			13,187
Elevance Health, Inc., 5.125%, Due 2/15/2053			5,000			4,995
IQVIA, Inc., 5.000%, Due 5/15/2027A			15,000			14,549
Marshfield Clinic Health System, Inc., 2.703%, Due 2/15/2030, Series 2020			5,000			4,269
Trinity Health Corp., 4.125%, Due 12/1/2045			10,000			8,987
						65,109
Pharmaceuticals - 0.12%
Cigna Corp., 3.400%, Due 3/15/2051			10,000			7,562
Total Consumer, Non-Cyclical						142,863
Energy - 3.74%
Energy - Alternate Sources - 0.43%
TerraForm Power Operating LLC, 5.000%, Due 1/31/2028A			30,000			28,164
Oil & Gas - 1.23%
BP Capital Markets America, Inc.,
3.543%, Due 4/6/2027			5,000			4,844
2.939%, Due 6/4/2051			10,000			7,115
Continental Resources, Inc.,
3.800%, Due 6/1/2024			15,000			14,697
4.375%, Due 1/15/2028			25,000			23,722
Ovintiv Exploration, Inc., 5.375%, Due 1/1/2026			15,000			15,079
Parsley Energy LLC/Parsley Finance Corp., 4.125%, Due 2/15/2028A			15,000			13,909
						79,366
Pipelines - 2.08%
Boardwalk Pipelines LP, 5.950%, Due 6/1/2026			15,000			15,371
Cheniere Energy, Inc., 4.625%, Due 10/15/2028			15,000			14,290
DCP Midstream Operating LP
5.625%, Due 7/15/2027			19,000			19,283
5.125%, Due 5/15/2029			25,000			24,888
Energy Transfer LP, 3.750%, Due 5/15/2030			15,000			13,717
MPLX LP, 4.250%, Due 12/1/2027			5,000			4,851
Targa Resources Partners LP/Targa Resources Partners Finance Corp., 4.875%, Due 2/1/2031			20,000			18,785
Western Midstream Operating LP, 4.750%, Due 8/15/2028			25,000			23,563
						134,748
Total Energy						242,278

See accompanying notes

26

American Beacon NIS Core Plus Bond Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 27.27% (continued)
Financial - 11.60%
Banks - 4.35%
Bank of America Corp.,
3.419%, Due 12/20/2028, (3 mo. USD LIBOR + 1.040%)B		$	20,000		$	18,673
3.970%, Due 3/5/2029, (3 mo. USD LIBOR + 1.070%)B			10,000			9,528
Bank of New York Mellon Corp., 4.289%, Due 6/13/2033, (Secured Overnight Financing Rate + 1.418%)B			10,000			9,650
Citigroup, Inc., 2.666%, Due 1/29/2031, (Secured Overnight Financing Rate + 1.146%)B			20,000			17,177
Citizens Bank NA, 4.575%, Due 8/9/2028, (Secured Overnight Financing Rate + 2.000%)B			10,000			9,915
Fifth Third Bancorp, 4.772%, Due 7/28/2030, (Secured Overnight Financing Rate + 2.127%)B			25,000			24,651
First Horizon Corp., 4.000%, Due 5/26/2025			25,000			24,417
Goldman Sachs Group, Inc.,
2.640%, Due 2/24/2028, (Secured Overnight Financing Rate + 1.114%)B			10,000			9,146
1.992%, Due 1/27/2032, (Secured Overnight Financing Rate + 1.090%)B			10,000			7,984
Huntington National Bank, 5.650%, Due 1/10/2030			10,000			10,384
JPMorgan Chase & Co.,
1.045%, Due 11/19/2026, (Secured Overnight Financing Rate + 0.800%)B			10,000			8,944
1.953%, Due 2/4/2032, (Secured Overnight Financing Rate + 1.065%)B			15,000			12,024
KeyBank NA, 5.000%, Due 1/26/2033			10,000			9,990
Morgan Stanley,
1.512%, Due 7/20/2027, (Secured Overnight Financing Rate + 0.858%)B			10,000			8,911
2.484%, Due 9/16/2036, (Secured Overnight Financing Rate + 1.360%)B			5,000			3,867
Santander Holdings USA, Inc., 4.400%, Due 7/13/2027			10,000			9,712
State Street Corp., 4.421%, Due 5/13/2033, (Secured Overnight Financing Rate + 1.605%)B			25,000			24,495
Truist Bank, 2.636%, Due 9/17/2029, (5 yr. CMT + 1.150%)B			20,000			18,850
U.S. Bancorp,
5.850%, Due 10/21/2033, (Secured Overnight Financing Rate + 2.090%)B			10,000			10,710
2.491%, Due 11/3/2036, (5 yr. CMT + 0.950%)B			10,000			7,970
Wells Fargo & Co., 5.875%, Due 6/15/2025, Series U, (3 mo. USD LIBOR + 3.990%)B C			25,000			24,880
						281,878
Diversified Financial Services - 2.34%
Ally Financial, Inc.,
5.750%, Due 11/20/2025			25,000			24,831
4.700%, Due 5/15/2026, Series B, (5 yr. CMT + 3.868%)B C			15,000			12,338
Burford Capital Global Finance LLC, 6.875%, Due 4/15/2030A			10,000			8,997
Capital One Financial Corp.,
3.950%, Due 9/1/2026, Series M, (5 yr. CMT + 3.157%)B C			25,000			21,710
2.618%, Due 11/2/2032, (Secured Overnight Financing Rate + 1.265%)B			10,000			7,924
LPL Holdings, Inc., 4.000%, Due 3/15/2029A			20,000			17,844
Navient Corp., 5.000%, Due 3/15/2027			15,000			13,689
Radian Group, Inc., 4.875%, Due 3/15/2027			10,000			9,512
Raymond James Financial, Inc., 3.750%, Due 4/1/2051			10,000			7,858
Rocket Mortgage LLC, 5.250%, Due 1/15/2028A			15,000			13,688
Rocket Mortgage LLC/Rocket Mortgage Co.-Issuer, Inc., 2.875%, Due 10/15/2026A			15,000			13,400
						151,791
Insurance - 0.97%
Americo Life, Inc., 3.450%, Due 4/15/2031A			10,000			7,869
Aon Corp./Aon Global Holdings PLC, 2.050%, Due 8/23/2031			10,000			8,162
AssuredPartners, Inc., 7.000%, Due 8/15/2025A			15,000			14,810
HUB International Ltd., 7.000%, Due 5/1/2026A			15,000			14,850
Old Republic International Corp., 3.875%, Due 8/26/2026			10,000			9,582
Teachers Insurance & Annuity Association of America, 3.300%, Due 5/15/2050A			10,000			7,488
						62,761
REITS - 3.94%
Alexandria Real Estate Equities, Inc.,
4.500%, Due 7/30/2029			10,000			9,802
3.375%, Due 8/15/2031			7,000			6,325

See accompanying notes

27

American Beacon NIS Core Plus Bond Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 27.27% (continued)
Financial - 11.60% (continued)
REITS - 3.94% (continued)
American Homes 4 Rent LP, 2.375%, Due 7/15/2031		$	10,000		$	8,140
Essex Portfolio LP, 2.550%, Due 6/15/2031			15,000			12,342
Extra Space Storage LP, 2.350%, Due 3/15/2032			5,000			3,950
HAT Holdings I LLC/HAT Holdings II LLC, 3.375%, Due 6/15/2026A			30,000			26,625
Healthcare Realty Holdings LP,
3.625%, Due 1/15/2028			25,000			22,550
3.100%, Due 2/15/2030			10,000			8,696
Highwoods Realty LP, 3.875%, Due 3/1/2027			14,000			13,175
iStar, Inc.,
4.250%, Due 8/1/2025			30,000			29,775
5.500%, Due 2/15/2026			63,000			63,473
Realty Income Corp., 2.200%, Due 6/15/2028			15,000			13,257
Rexford Industrial Realty LP, 2.125%, Due 12/1/2030			15,000			12,215
VICI Properties LP/VICI Note Co., Inc., 5.750%, Due 2/1/2027A			25,000			24,869
						255,194
Total Financial						751,624
Industrial - 1.00%
Aerospace/Defense - 0.62%
Boeing Co., 2.196%, Due 2/4/2026			15,000			13,838
Howmet Aerospace, Inc., 6.750%, Due 1/15/2028			25,000			26,231
						40,069
Building Materials - 0.12%
Eagle Materials, Inc., 2.500%, Due 7/1/2031			10,000			8,150
Electronics - 0.26%
Agilent Technologies, Inc., 2.300%, Due 3/12/2031			10,000			8,370
Vontier Corp., 2.400%, Due 4/1/2028			10,000			8,214
						16,584
Total Industrial						64,803
Technology - 0.75%
Office/Business Equipment - 0.07%
CDW LLC/CDW Finance Corp., 3.276%, Due 12/1/2028			5,000			4,390
Semiconductors - 0.50%
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.875%, Due 1/15/2027			15,000			14,432
Intel Corp., 4.150%, Due 8/5/2032			5,000			4,766
Qorvo, Inc., 4.375%, Due 10/15/2029			15,000			13,538
						32,736
Software - 0.18%
Oracle Corp., 3.950%, Due 3/25/2051			15,000			11,599
Total Technology						48,725
Utilities - 1.44%
Electric - 1.44%
Ameren Corp., 1.950%, Due 3/15/2027			5,000			4,492
Duke Energy Indiana LLC, 2.750%, Due 4/1/2050			15,000			10,113
Eversource Energy, 4.600%, Due 7/1/2027			10,000			9,996
Mid-Atlantic Interstate Transmission LLC, 4.100%, Due 5/15/2028A			25,000			24,095
PacifiCorp, 5.350%, Due 12/1/2053			5,000			5,293

See accompanying notes

28

American Beacon NIS Core Plus Bond Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount			Fair Value
CORPORATE OBLIGATIONS - 27.27% (continued)
Utilities - 1.44% (continued)
Electric - 1.44% (continued)
Public Service Co. of Oklahoma, 5.250%, Due 1/15/2033		$	15,000		$	15,491
Southern Co., 4.000%, Due 1/15/2051, Series B, (5 yr. CMT + 3.733%)B			25,000			23,783
						93,263
Total Utilities						93,263
Total Corporate Obligations (Cost $1,895,154)						1,766,677
FOREIGN CORPORATE OBLIGATIONS - 1.49%
Basic Materials - 0.16%
Iron/Steel - 0.16%
ArcelorMittal SA, 6.550%, Due 11/29/2027			10,000			10,430
Communications - 0.36%
Telecommunications - 0.36%
Altice France SA, 5.125%, Due 1/15/2029A			30,000			23,513
Energy - 0.13%
Pipelines - 0.13%
TransCanada PipeLines Ltd., 2.500%, Due 10/12/2031			10,000			8,295
Financial - 0.84%
Banks - 0.84%
Bank of Montreal,
0.949%, Due 1/22/2027, (Secured Overnight Financing Rate + 0.603%)B			10,000			8,940
5.203%, Due 2/1/2028			10,000			10,182
3.803%, Due 12/15/2032, (5 yr. USD Swap + 1.432%)B			10,000			9,139
Barclays PLC, 7.385%, Due 11/2/2028, (1 yr. CMT + 3.300%)B			5,000			5,414
Royal Bank of Canada, 5.000%, Due 2/1/2033			10,000			10,120
Toronto-Dominion Bank, 5.156%, Due 1/10/2028			10,000			10,190
						53,985
Total Financial						53,985
Total Foreign Corporate Obligations (Cost $99,383)						96,223
ASSET-BACKED OBLIGATIONS - 10.75%
CAL Funding IV Ltd., 2.220%, Due 9/25/2045, 2020 1A AA			12,025			10,722
Carvana Auto Receivables Trust, 1.580%, Due 6/12/2028, 2021 N3 D			15,000			13,654
Citicorp Residential Mortgage Trust, 4.955%, Due 3/25/2037, 2007 1 A5D			16,720			16,398
CLI Funding VIII LLC, 2.720%, Due 1/18/2047, 2022 1A AA			9,115			8,045
College Ave Student Loans LLC, 5.606%, Due 7/25/2051, 2021 A A1, (1 mo. USD LIBOR + 1.100%)A B			20,654			20,123
Conseco Finance Corp.,
7.220%, Due 3/15/2028, 1997 1 M1E			41,458			41,426
6.280%, Due 9/1/2030, 1998 8 A1			1,967			1,965
Exeter Automobile Receivables Trust, 1.960%, Due 1/17/2028, 2021 4A D			25,000			23,065
Finance of America Structured Securities Trust, 2.000%, Due 9/25/2069, 2019 1R A			59,270			61,228
GSAMP Trust, 5.422%, Due 7/25/2033, 2003 SEA2 A1D			49,523			46,899
Hyundai Auto Receivables Trust, 1.660%, Due 6/15/2028, 2021 C C			15,000			13,610
Louisiana Local Government Environmental Facilities & Community Development Authority,
4.145%, Due 2/1/2033, Series A			15,000			14,582
5.197%, Due 9/1/2039, 2022 ENO A			25,000			25,213
Mid-State Capital Corp. Trust,
7.758%, Due 1/15/2040, 2005 1 B			48,322			48,690
5.787%, Due 10/15/2040, 2006 1 AA			42,486			41,705
8.311%, Due 10/15/2040, 2006 1 BA			19,761			20,237

See accompanying notes

29

American Beacon NIS Core Plus Bond Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount			Fair Value
ASSET-BACKED OBLIGATIONS - 10.75% (continued)
Mid-State Trust XI, 4.864%, Due 7/15/2038, 11 A1		$	36,328		$	35,202
Navient Private Education Loan Trust, 3.910%, Due 12/15/2045, 2016 AA A2AA			26,276			25,512
Navient Private Education Refi Loan Trust,			5,312			5,116
4.000%, Due 12/15/2059, 2018 DA A2AA
5.504%, Due 12/15/2059, 2019 D A2B, (1 mo. USD LIBOR + 1.050%)A B			12,952			12,798
1.110%, Due 2/18/2070, 2021 FA AA			15,603			13,322
Octane Receivables Trust, 1.210%, Due 9/20/2028, 2021 2A AA			18,110			17,263
PFS Financing Corp., 2.470%, Due 2/15/2027, 2022 A AA			20,000			19,006
Salomon Mortgage Loan Trust, 4.772%, Due 11/25/2033, 2001 CB4 1M1, (1 mo. USD LIBOR + 1.500%)B			29,484			30,073
Santander Drive Auto Receivables Trust,
4.490%, Due 11/16/2026, 2022 6 A3			15,000			14,880
1.670%, Due 10/15/2027, 2021 4 D			20,000			18,574
Santander Retail Auto Lease Trust, 1.410%, Due 11/20/2025, 2021 B DA			35,000			32,958
ServiceMaster Funding LLC, 2.841%, Due 1/30/2051, 2020 1 A2IA			24,500			20,503
Sierra Timeshare Receivables Funding LLC, 1.340%, Due 11/20/2037, 2021 1A BA			7,299			6,742
SMB Private Education Loan Trust,
2.820%, Due 10/15/2035, 2017 B A2AA			12,846			12,284
1.290%, Due 7/15/2053, 2020 B A1AA			11,991			10,809
Vantage Data Centers LLC, 3.188%, Due 7/15/2044, 2019 1A A2A			14,488			13,877
Total Asset-Backed Obligations (Cost $727,547)						696,481
COLLATERALIZED MORTGAGE OBLIGATIONS - 7.94%
Bear Stearns ARM Trust, 3.724%, Due 2/25/2035, 2004 12 2A1E			11,595			10,880
Bear Stearns Asset Backed Securities Trust, 5.250%, Due 10/25/2033, 2003 AC5 A5D			51,592			50,079
Brean Asset Backed Securities Trust, 1.750%, Due 10/25/2061, 2021 RM2 AA E			43,113			38,008
Chase Mortgage Finance Corp.,
3.750%, Due 12/25/2045, 2016 SH2 M2A E			16,278			14,410
3.750%, Due 12/25/2045, 2016 SH2 M3A E			33,083			29,027
CHL Mortgage Pass-Through Trust, 5.250%, Due 5/25/2034, 2004 4 A19			19,383			18,292
Finance of America Structured Securities Trust, 3.721%, Due 3/25/2050, 2021 1A Y			34,997			34,784
Greenpoint Mortgage Pass-Through Certificates, 3.757%, Due 10/25/2033, 2003 1 A1E			27,775			26,143
JP Morgan Mortgage Trust,
2.500%, Due 12/25/2051, 2021 INV2 A2A E			36,332			30,292
2.500%, Due 7/25/2052, 2022 1 A3A E			51,088			42,530
New Residential Mortgage Loan Trust,
3.750%, Due 11/26/2035, 2016 2A A1A E			37,646			35,135
5.556%, Due 1/25/2048, 2018 4A B1, (1 mo. USD LIBOR + 1.050%)A B			76,698			74,170
5.559%, Due 11/25/2054, 2014 3A B3A E			26,224			25,048
4.000%, Due 3/25/2057, 2017 2A A3A E			46,795			44,239
Prime Mortgage Trust, 6.000%, Due 2/25/2034, 2004 CL1 1A1			29,829			28,883
Residential Funding Mortgage Securities I Trust, 5.500%, Due 12/25/2034, 2004 S9 1A23			13,754			12,552
Total Collateralized Mortgage Obligations (Cost $552,359)						514,472
COMMERCIAL MORTGAGE-BACKED OBLIGATIONS - 4.88%
Bank,
4.399%, Due 8/15/2055, 2022 BNK43 A5			15,000			14,692
3.265%, Due 9/15/2060, 2017 BNK7 ASB			44,420			42,727
1.844%, Due 3/15/2063, 2020 BN28 A4			25,000			20,521
BBCMS Mortgage Trust, 4.600%, Due 6/15/2055, 2022 C16 A5E			15,000			14,917
Benchmark Mortgage Trust,
2.148%, Due 9/15/2053, 2020 B19 AS			30,000			23,850
1.978%, Due 12/17/2053, 2020 B21 A5			10,000			8,205
2.254%, Due 12/17/2053, 2020 B21 AS			10,000			7,965
BX Trust, 6.643%, Due 10/15/2039, 2022 GPA A, (1 mo. USD Term Secured Overnight Financing Rate + 2.165%)A B			20,000			19,994

See accompanying notes

30

American Beacon NIS Core Plus Bond Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount			Fair Value
COMMERCIAL MORTGAGE-BACKED OBLIGATIONS - 4.88% (continued)
COMM Mortgage Trust,
4.300%, Due 10/10/2046, 2013 CR12 AM		$	10,000		$	9,200
3.902%, Due 7/10/2050, 2015 PC1 A5			25,000			24,307
2.950%, Due 8/15/2057, 2019 GC44 A5			20,000			17,762
DC Office Trust, 3.072%, Due 9/15/2045, 2019 MTC DA E			10,000			7,306
FRESB Mortgage Trust,
3.160%, Due 11/25/2027, 2018 SB45 A10FE			11,866			11,134
3.300%, Due 7/25/2038, 2018 SB55 A5HE			9,090			8,979
JPMBB Commercial Mortgage Securities Trust, 3.559%, Due 7/15/2048, 2015 C30 ASB			30,070			29,364
Med Trust, 6.260%, Due 11/15/2038, 2021 MDLN C, (1 mo. USD LIBOR + 1.800%)A B			14,956			14,544
Velocity Commercial Capital Loan Trust,
4.050%, Due 10/26/2048, 2018 2 AA E			20,098			19,338
4.120%, Due 3/25/2049, 2019 1 M3A E			25,743			21,066
Total Commercial Mortgage-Backed Obligations (Cost $354,633)						315,871
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 9.00%
Federal Home Loan Mortgage Corp.,
3.000%, Due 7/1/2042			29,367			27,096
3.000%, Due 5/1/2047			55,811			51,887
3.000%, Due 11/1/2049			29,274			27,033
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates,
3.710%, Due 9/25/2032, K-150 A2E			15,000			14,570
2.481%, Due 7/25/2034, K-1514 A1			13,371			11,974
1.238%, Due 1/25/2035, K-1516 A1			52,795			43,007
Federal National Mortgage Association,
3.547%, Due 9/25/2028, 2019 M1 A2E			24,261			23,706
3.610%, Due 2/25/2031, 2019 M4 A2			10,000			9,630
4.500%, Due 7/1/2031			20,988			21,328
1.714%, Due 7/25/2031, 2021 M17 A2E			10,000			8,168
2.500%, Due 4/1/2037E			20,188			18,485
2.000%, Due 3/1/2042			28,252			24,579
2.500%, Due 4/1/2042			28,489			25,582
4.000%, Due 2/1/2043E			31,140			30,729
4.000%, Due 12/1/2043			14,253			14,032
4.000%, Due 3/1/2046E			27,876			27,509
2.500%, Due 12/1/2046E			33,683			29,953
3.000%, Due 12/1/2046			30,103			27,961
3.000%, Due 1/1/2048E			44,261			41,051
3.000%, Due 2/1/2048E			24,587			22,836
3.000%, Due 8/1/2048E			49,698			46,047
Government National Mortgage Association, 3.500%, Due 4/20/2046			37,114			35,581
Total U.S. Agency Mortgage-Backed Obligations (Cost $597,130)						582,744
U.S. TREASURY OBLIGATIONS - 30.31%
U.S. Treasury Bonds,
1.750%, Due 8/15/2041			206,000			149,463
2.000%, Due 11/15/2041			60,000			45,401
3.375%, Due 8/15/2042			8,000			7,534
4.000%, Due 11/15/2042			23,000			23,676
2.500%, Due 2/15/2045			67,000			53,760
1.375%, Due 8/15/2050			83,000			49,875
2.250%, Due 2/15/2052			265,000			197,487
2.875%, Due 5/15/2052			81,000			69,255
3.000%, Due 8/15/2052			67,000			58,824
U.S. Treasury Notes,
0.625%, Due 10/15/2024			50,000			46,951
3.000%, Due 7/15/2025			50,000			48,777

See accompanying notes

31

American Beacon NIS Core Plus Bond Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount			Fair Value
U.S. TREASURY OBLIGATIONS - 30.31% (continued)
U.S. Treasury Notes (continued),
0.500%, Due 2/28/2026		$	100,000		$	90,242
0.750%, Due 8/31/2026			330,000			296,484
1.500%, Due 1/31/2027			226,000			207,249
2.750%, Due 7/31/2027			10,000			9,611
3.875%, Due 12/31/2027			9,000			9,087
1.000%, Due 7/31/2028			68,000			59,112
2.375%, Due 3/31/2029			224,000			208,530
2.875%, Due 5/15/2032			217,000			206,082
4.125%, Due 11/15/2032			120,000			125,887
Total U.S. Treasury Obligations (Cost $2,032,401)						1,963,287
MUNICIPAL OBLIGATIONS - 7.23%
Alabama Federal Aid Highway Finance Authority Revenue Bonds, 2.650%, Due 9/1/2037, Series B			25,000			20,123
California Health Facilities Financing Authority Revenue Bonds, 4.190%, Due 6/1/2037			10,000			9,575
Central Puget Sound Regional Transit Authority, Revenue Bonds, 5.491%, Due 11/1/2039			5,000			5,502
City of Dallas TX Waterworks & Sewer System Revenue Bonds, 2.772%, Due 10/1/2040, Series D			15,000			11,601
City Of New York General Obligation Bonds,
5.985%, Due 12/1/2036, Series D1			10,000			10,984
5.517%, Due 10/1/2037, Series C1			15,000			16,108
6.271%, Due 12/1/2037, Series F1			5,000			5,716
City of Tempe, 2.521%, Due 7/1/2036, COPs			10,000			7,729
Commonwealth of Massachusetts,
3.769%, Due 7/15/2029, Series A			15,000			14,496
4.110%, Due 7/15/2031, Series B			5,000			4,941
County of King Sewer Revenue, 2.841%, Due 7/1/2047, Series A			10,000			6,992
Dallas Area Rapid Transit Senior Lien Sales Tax Revenue Bonds, 2.613%, Due 12/1/2048, Series A			15,000			10,965
Gainesville, Florida Revenue Bonds, 3.047%, Due 10/1/2040			15,000			11,615
Golden State Tobacco Securitization Corp., California Revenue Bonds,
2.746%, Due 6/1/2034, Series B			10,000			8,446
3.293%, Due 6/1/2042, Series B			5,000			3,954
Indianapolis Local Public Improvement Bond Bank, Indiana Revenue Bonds, 5.966%, Due 1/15/2030, Series B2			25,000			26,175
JobsOhio Beverage System, 2.833%, Due 1/1/2038, Series A			10,000			8,169
Kansas Development Finance Authority Revenue Bonds, 2.774%, Due 5/1/2051, Series K			10,000			7,282
Massachusetts General Obligations Bond, 2.514%, Due 7/1/2041, Series C			5,000			3,809
Massachusetts School Building Authority Revenue Bonds, 3.395%, Due 10/15/2040, Series B			10,000			8,464
Massachusetts Water Resources Authority Revenue Bonds, 2.823%, Due 8/1/2041, Series C			5,000			4,029
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, 5.508%, Due 8/1/2037			15,000			15,938
New York State Dormitory Authority, 5.600%, Due 3/15/2040, Series D			5,000			5,384
New York State Urban Development Corp., 3.900%, Due 3/15/2033, Series B			10,000			9,558
Ohio Water Development Authority Water Pollution Control Loan Fund Revenue Bonds, 4.879%, Due 12/1/2034, Series B2			35,000			35,796
Oklahoma Development Finance Authority Revenue Bonds, 4.135%, Due 12/1/2033, Series A-1			10,000			9,862
Oregon Education Districts, 2.895%, Due 6/30/2040, Series A			10,000			7,821
Palm Springs Financing Authority, California Revenue Bonds, 2.869%, Due 11/1/2034, Series B			15,000			12,284
Riverside County, California Revenue Bonds, 3.818%, Due 2/15/2038			15,000			14,107
San Jose Financing Authority, California Revenue Bonds, 2.812%, Due 6/1/2037, Series A			25,000			19,519
Santa Clara Valley Transportation Authority, 5.876%, Due 4/1/2032, Series A			15,000			15,816
State Board of Administration Finance Corp., 2.154%, Due 7/1/2030, Series A			15,000			12,581
State of California,
4.600%, Due 4/1/2038			15,000			14,749
7.300%, Due 10/1/2039			10,000			12,743
7.625%, Due 3/1/2040			15,000			19,873
State of Texas, 5.517%, Due 4/1/2039			10,000			11,229
Sumter Landing Community Development District Revenue Bonds, 4.172%, Due 10/1/2047			10,000			8,821
Texas Transportation Commission General Obligation Bonds, 2.472%, Due 10/1/2044			10,000			7,273

See accompanying notes

32

American Beacon NIS Core Plus Bond Fund^SM

Schedule of Investments

January 31, 2023

	Principal Amount			Fair Value
MUNICIPAL OBLIGATIONS - 7.23% (continued)
Texas Transportation Commission Revenue Bonds, 2.562%, Due 4/1/2042		$	10,000		$	7,787
Texas Transportation Commission State Highway Fund, 4.000%, Due 10/1/2033			10,000			9,621
Tucson, Arizona Certificate of Participation, 2.856%, Due 7/1/2047, Series A			15,000			11,069
Total Municipal Obligations (Cost $497,980)						468,506
TOTAL INVESTMENTS - 98.87% (Cost $6,756,587)						6,404,261
OTHER ASSETS, NET OF LIABILITIES - 1.13%						73,125
TOTAL NET ASSETS - 100.00%					$	6,477,386
Percentages are stated as a percent of net assets.

^A Security exempt from registration under the Securities Act of 1933. These securities may be resold to qualified institutional buyers pursuant to Rule 144A. At the period end, the value of these securities amounted to $1,184,312 or 18.28% of net assets. The Fund has no right to demand registration of these securities.

^B Variable, floating, or adjustable rate securities with an interest rate that changes periodically. Rates are periodically reset with rates that are based on a predetermined benchmark such as a widely followed interest rate such as T-bills, SOFR, LIBOR or PRIME plus a fixed spread. The interest rate disclosed reflects the rate in effect on January 31, 2023.

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

^D Step Up/Down - A zero coupon bond that converts to a fixed rate or variable interest rate at a designated future date. The rate disclosed represents the coupon rate at January 31, 2023. The maturity date disclosed represents the final maturity date.

^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.

CMT - Constant Maturity Treasury.

LIBOR - London Interbank Offered Rate.

LLC - Limited Liability Company.

LP - Limited Partnership.

PLC - Public Limited Company.

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

SOFR – Secured Overnight Financing Rate.

The Fund’s investments are summarized by level based on the inputs used to determine their values. As of January 31, 2023, the investments were classified as described below:

NIS Core Plus Bond Fund	Level 1		Level 2		Level 3		Total
Assets
Corporate Obligations	$	-	$	1,766,677	$	-	$	1,766,677
Foreign Corporate Obligations		-		96,223		-		96,223
Asset-Backed Obligations		-		696,481		-		696,481
Collateralized Mortgage Obligations		-		514,472		-		514,472
Commercial Mortgage-Backed Obligations		-		315,871		-		315,871
U.S. Agency Mortgage-Backed Obligations		-		582,744		-		582,744
U.S. Treasury Obligations		-		1,963,287		-		1,963,287
Municipal Obligations		-		468,506		-		468,506
Total Investments in Securities - Assets	$	-	$	6,404,261	$	-	$	6,404,261

U.S. GAAP requires transfers between all levels to/from level 3 be disclosed. During the year ended January 31, 2023, there were no transfers into or out of Level 3.

See accompanying notes

33

American Beacon Funds^SM

Statements of Assets and Liabilities

January 31, 2023

	Developing World Income Fund			NIS Core Plus Bond Fund
Assets:
Investments in unaffiliated securities, at fair value†	$	351,683,647		$	6,404,261
Investments in affiliated securities, at fair value‡		24,495,667			–
Foreign currency, at fair value^ *		13,291,612			–
Cash		70,277			105,028
Cash collateral held at custodian for the benefit of the broker		1,750,000			–
Dividends and interest receivable		10,675,966			46,908
Receivable for investments sold		803,952			39,756
Receivable for fund shares sold		1,407,068			1,555
Receivable for expense reimbursement (Note 2)		–			11,601
Unrealized appreciation from forward foreign currency contracts		3,995			–
Prepaid expenses		58,735			24,569
Total assets		404,240,919			6,633,678
Liabilities:
Payable for investments purchased		4,797,003			49,284
Payable for fund shares redeemed		390,044			–
Dividends payable		–			12,837
Management and sub-advisory fees payable (Note 2)		292,174			2,978
Service fees payable (Note 2)		18,966			129
Transfer agent fees payable (Note 2)		32,713			1,136
Custody and fund accounting fees payable		133,810			9,515
Professional fees payable		107,462			74,649
Trustee fees payable (Note 2)		1,965			30
Payable for prospectus and shareholder reports		26,445			1,899
Unrealized depreciation from forward foreign currency contracts		163,884			–
Other liabilities		42,532			3,835
Total liabilities		6,006,998			156,292
Net assets	$	398,233,921		$	6,477,386
Analysis of net assets:
Paid-in-capital	$	520,929,549		$	7,314,245
Total distributable earnings (deficits)A		(122,695,628	)		(836,859	)
Net assets	$	398,233,921		$	6,477,386
Shares outstanding at no par value (unlimited shares authorized):
R5 Class		6,685,694			N/A
Y Class		44,160,122			10,000
Investor Class		5,174,712			N/A
A Class		372,117			12,964
C Class		1,145,370			14,561
R6 Class		N/A			714,138
Net assets:
R5 Class	$	46,282,796			N/A
Y Class	$	305,728,868		$	86,168
Investor Class	$	35,767,335			N/A
A Class	$	2,574,241		$	111,692
C Class	$	7,880,681		$	125,459
R6 Class		N/A		$	6,154,067
Net asset value, offering and redemption price per share:
R5 Class	$	6.92			N/A
Y Class	$	6.92		$	8.62
Investor Class	$	6.91			N/A
A Class	$	6.92		$	8.62
A Class (offering price)	$	7.27		$	8.96
C Class	$	6.88		$	8.62
R6 Class		N/A		$	8.62
† Cost of investments in unaffiliated securities	$	411,627,324		$	6,756,587
‡ Cost of investments in affiliated securities	$	24,495,667		$	–
^ Cost of foreign currency	$	13,688,429		$	–
* As of January 31, 2023, foreign currency denominated in Ukrainian Hryvnia has a value of $6,302,788.
A The Fund’s investments in affiliated securities did not have unrealized appreciation (depreciation) at year end.

See accompanying notes

34

American Beacon Funds^SM

Statements of Operations

For the year ended January 31, 2023

	Developing World Income Fund			NIS Core Plus Bond Fund
Investment income:
Dividend income from affiliated securities (Note 2)	$	472,081		$	–
Interest income†		40,211,273			196,084
Other income		769			–
Total investment income		40,684,123			196,084
Expenses:
Management and sub-advisory fees (Note 2)		3,456,221			32,122
Transfer agent fees:
R5 Class (Note 2)		23,120			–
Y Class (Note 2)		317,579			–
Investor Class		3,063			–
A Class		474			–
C Class		441			–
R6 Class		–			31
Custody and fund accounting fees		404,464			32,259
Professional fees		264,090			61,025
Registration fees and expenses		122,502			59,622
Service fees (Note 2):
Investor Class		144,788			–
A Class		2,538			–
C Class		8,576			–
Distribution fees (Note 2):
A Class		7,670			233
C Class		80,836			910
Dues and membership fees		–			6,875
Prospectus and shareholder report expenses		66,158			3,592
Trustee fees (Note 2)		34,442			477
Loan expense (Note 9)		4,918			32
Other expenses		32,047			4,519
Total expenses		4,973,927			201,697
Net fees waived and expenses (reimbursed) / recouped (Note 2)		–			(175,169	)A
Net expenses		4,973,927			26,528
Net investment income		35,710,196			169,556
Realized and unrealized gain (loss) from investments:
Net realized gain (loss) from:
Investments in unaffiliated securitiesB		(37,973,160	)		(419,775	)
Foreign currency transactions		(2,213,858	)		–
Forward foreign currency contracts		1,678,615			–
Change in net unrealized (depreciation) of:
Investments in unaffiliated securitiesC		(37,854,466	)		(218,233	)
Foreign currency transactions		(101,939	)		–
Forward foreign currency contracts		(452,768	)		–
Net (loss) from investments		(76,917,576	)		(638,008	)
Net (decrease) in net assets resulting from operations	$	(41,207,380	)	$	(468,452	)
† Foreign taxes	$	773,329		$	–
A The Manager voluntarily reimbursed service fees in the amount of $204 for NIS Core Plus Bond Fund.
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 year end.

See accompanying notes

35

American Beacon Funds^SM

Statements of Changes in Net Assets

	Developing World Income Fund						NIS Core Plus Bond Fund
	Year Ended January 31, 2023			Year Ended January 31, 2022			Year Ended January 31, 2023			Year Ended January 31, 2022
Increase (decrease) in net assets:
Operations:
Net investment income	$	35,710,196		$	36,498,110		$	169,556		$	108,243
Net realized (loss) from investments in unaffiliated securities, foreign currency transactions, and forward foreign currency contracts		(38,508,403	)		(6,706,913	)		(419,775	)		(27,733	)
Change in net unrealized (depreciation) of investments in unaffiliated securities, foreign currency transactions, and forward foreign currency contracts		(38,409,173	)		(6,449,062	)		(218,233	)		(163,313	)
Net increase (decrease) in net assets resulting from operations		(41,207,380	)		23,342,135			(468,452	)		(82,803	)
Distributions to shareholders:
Total retained earnings:
R5 Class		(2,892,344	)		(4,110,907	)		-			-
Y Class		(20,053,613	)		(26,861,271	)		(2,632	)		(2,089	)
Investor Class		(2,547,769	)		(3,827,819	)		-			-
A Class		(201,778	)		(393,683	)		(2,596	)		(1,841	)
C Class		(452,109	)		(688,977	)		(1,845	)		(1,097	)
R6 Class		-			-			(173,984	)		(120,517	)
Tax return of capital:
R5 Class		(1,139,483	)		-			-			-
Y Class		(7,254,095	)		-			-			-
Investor Class		(847,299	)		-			-			-
A Class		(59,833	)		-			-			-
C Class		(168,709	)		-			-			-
R6 Class		-			-			-			-
Net distributions to shareholders		(35,617,032	)		(35,882,657	)		(181,057	)		(125,544	)
Capital share transactions (Note 10):
Proceeds from sales of shares		188,251,250			216,185,461			1,384,224			507,279
Reinvestment of dividends and distributions		33,890,452			33,905,524			46,426			17,676
Cost of shares redeemed		(259,947,586	)		(167,227,928	)		(240,839	)		(368	)
Redemption fees		189,537			126,505			-			-
Net increase (decrease) in net assets from capital share transactions		(37,616,347	)		82,989,562			1,189,811			524,587
Net increase (decrease) in net assets		(114,440,759	)		70,449,040			540,302			316,240
Net assets:
Beginning of year		512,674,680			442,225,640			5,937,084			5,620,844
End of year	$	398,233,921		$	512,674,680		$	6,477,386		$	5,937,084

See accompanying notes

36

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

1. Organization and Significant Accounting Policies

American Beacon Funds (the “Trust”) is organized as a Massachusetts business trust. The Funds, each a series within the Trust, are registered under the Investment Company Act of 1940, as amended (the “Act”), as diversified, open-end management investment companies. As of January 31, 2023, the Trust consists of twenty-five active series, two of which are presented in this filing: American Beacon Developing World Income Fund and American Beacon NIS Core Plus Bond Fund (collectively, the “Funds” and each individually a “Fund”). The remaining twenty-three active series are reported in separate filings. From February 1, 2022 to January 3, 2023, the American Beacon Developing World Income Fund was known as American Beacon Frontier Markets Income Fund.

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

Recently Adopted Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848); Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The guidance is applicable to contracts referencing London Inter-bank Offered Rate (“LIBOR”) or another reference rate that is expected to be discontinued due to reference rate reform. The ASU is effective as of March 12, 2020 and generally can be applied through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 which updates and clarifies ASU No. 2020-04. The amendments in this ASU defer the sunset date of Topic 848 from December 31, 2022, to December 31, 2024. Management expects these ASUs will not have a material impact on the Funds’ financial statements.

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

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

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820); Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which provides clarifying guidance that

37

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Management expects the ASU will not have a material impact on the Funds’ financial statements.

Class Disclosure

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
R5 Class	Large institutional investors - sold directly or through intermediary channels.	$	250,000
Y Class	Large institutional retirement plan investors - sold directly or through intermediary channels.	$	100,000
Investor Class	All investors using intermediary organizations such as broker-dealers or retirement plan sponsors - sold directly through intermediary channels.	$	2,500
A Class	All investors who invest through intermediary organizations, such as broker-dealers or third party administrator. Retail investors who invest directly through a financial intermediary such as a broker, bank, or registered investment advisor which may include a front-end sales charge and a contingent deferred sales charge (“CDSC”).	$	2,500
C Class	Retail investors who invest directly through a financial intermediary such as a broker or through employee directed benefit plans with applicable sales charges which may include CDSC.	$	1,000
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 based on the relative net assets. Realized and unrealized capital gains and losses of each class are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include service, distribution, transfer agent fees, and sub-transfer agent fees that vary amongst the classes as described more fully in Note 2.

Significant Accounting Policies

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

Security Transactions and Investment Income

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

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

38

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

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. Foreign governments and their agencies may enact policies that delay or place limits on repatriation of local currency to U.S. dollars. Market quoted rates for immediate currency settlement may have access or transaction volume restrictions that are insufficient to convert a significant portion of a fund’s local currency denominated assets and liabilities to U.S. dollars. On February 24, 2022, monetary policies were enacted by the National Bank of Ukraine (the NBU”), limiting its local currency’s repatriation to ensure the steady functioning of the country’s financial system during the martial law legal regime. These policies significantly impact the ability of the Fund to convert local denominated assets and liabilities amounts to U.S. dollars using quoted immediate currency settlement rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and is reported with all other foreign currency gains and losses on the Funds’ Statements of Operations.

Distributions to Shareholders

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

Allocation of Income, Trust Expenses, Gains, and Losses

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

Use of Estimates

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

Redemption Fees

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

39

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

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 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 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 Funds, and the Manager have entered into Investment Advisory Agreements with abrdn Investments Limited and Global Evolution USA, LLC for the American Beacon Developing World Income Fund and with National Investment Services of America, LLC for the American Beacon NIS Core Plus Bond 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 each Fund’s average daily net assets according to the following schedules:

abrdn Investments Limited

All Assets 0.50 % 

Global Evolution USA, LLC

All Assets 0.50 % 

National Investment Services of America, LLC

First $1.5 billion	0.20	%
Over $1.5 billion	0.18	%

The Management and Sub-Advisory Fees paid by the Funds for the year ended January 31, 2023 were as follows:

Developing World Income Fund

	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.35	%	$	1,438,882
Sub-Advisor Fees		0.50	%		2,017,339
Total		0.85	%	$	3,456,221

40

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

NIS Core Plus Bond Fund

	Effective Fee Rate			Amount of Fees Paid
Management Fees		0.35	%	$	20,441
Sub-Advisor Fees		0.20	%		11,681
Total		0.55	%	$	32,122

Distribution Plans

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

Service Plans

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

Sub-Transfer Agent Fees

The Manager has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the R5 and Y Classes of the Funds and has agreed to compensate the intermediaries for providing these services. Intermediaries transact with the Funds primarily through the use of omnibus accounts on behalf of their customers who hold positions in the Funds. Certain services would have been provided by the Funds’ transfer agent and other service providers if the shareholders’ accounts were maintained directly by the Funds’ transfer agent. Accordingly, the Funds, pursuant to Board approval, have agreed to reimburse the Manager for certain non-distribution shareholder services provided by financial intermediaries for the R5 and Y Classes. The reimbursement amounts (sub-transfer agent fees) paid to the Manager are subject to a fee limit of up to 0.10% of an intermediary’s average net assets in the R5 and Y Classes on an annual basis. During the year ended January 31, 2023, the sub-transfer agent fees, as reflected in “Transfer agent fees” on the Statements of Operations, were as follows:

Fund	Sub-Transfer Agent Fees
Developing World Income	$	310,865
NIS Core Plus Bond		(33	)

As of January 31, 2023, 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
Developing World Income	$	25,447
NIS Core Plus Bond		–

41

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

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 listed below held the following shares with a January 31, 2023 fair value and dividend income earned from the investment in the USG Select Fund.

Affiliated Security	Type of Transaction	Fund	January 31, 2023 Shares/Principal		Change in Unrealized Gain (Loss)		Realized Gain (Loss)		Dividend Income		January 31, 2023 Fair Value
U.S. Government Money Market Select	Direct	Developing World Income	$	24,495,667	$	-	$	-	$	472,081	$	24,495,667

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 year ended January 31, 2023, the Manager earned fees on the Funds’ direct investments in the USG Select Fund as shown below:

Fund	Direct Investments in USG Select Fund
Developing World Income	$	26,337

Interfund Credit Facility

Pursuant to an exemptive order issued by the SEC, the Funds, along with other registered investment companies having management contracts with the Manager, may participate in a credit facility whereby each fund, under certain conditions, is permitted to lend money directly to and borrow directly from other participating funds for temporary purposes. The interfund credit facility is advantageous to the funds because it provides added liquidity and eliminates the need to maintain higher cash balances to meet redemptions. This situation could arise when shareholder redemptions exceed anticipated volumes and certain funds have insufficient cash on hand to satisfy such redemptions or when sales of securities do not settle as expected, resulting in a cash shortfall for a fund. When a fund liquidates portfolio securities to meet redemption requests, they often do not receive payment in settlement for up to two days (or longer for certain foreign transactions). Redemption requests normally are satisfied on the next business day. The credit facility provides a source of immediate, short-term liquidity pending settlement of the sale of portfolio securities. The credit facility is administered by a credit facility team consisting of professionals from the Manager’s asset management, compliance, and accounting areas who report the activities of the credit facility to the Board. During the year ended January 31, 2023, the Developing World Income Fund borrowed on average $15,539,388 for 5 days at an average interest rate of 0.88% with interest charges of $1,873. These amounts are recorded as “Other expenses” in the Statements of Operations. During the year ended January 31, 2023, the NIS Core Plus Bond Fund did not utilize the credit facility.

42

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

Expense Reimbursement Plan

The Manager contractually agreed to reduce fees and/or reimburse expenses for the classes of the Funds, through May 31, 2023, to the extent that total operating expenses (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses) exceed the Funds’ expense cap. During the year ended January 31, 2023, the Manager waived and/or reimbursed expenses as follows:

		Expense Cap
Fund	Class	2/1/2022 – 5/31/2022			6/1/2022 – 1/31/2023			Reimbursed Expenses		(Recouped) Expenses		Expiration of Reimbursed Expenses
NIS Core Plus Bond	Y		0.53	%		0.53	%	$	2,501	$	–		2025-2026
NIS Core Plus Bond	A		0.78	%		0.78	%		2,630		–		2025-2026
NIS Core Plus Bond	C		1.53	%		1.53	%		2,575		–		2025-2026
NIS Core Plus Bond	R6		0.43	%		0.43	%		167,259		–		2025-2026

Of the above amounts, $11,601 was disclosed as a Receivable for expense reimbursement on the Statements of Assets and Liabilities at January 31, 2023 for NIS Core Plus Bond Fund.

The Funds have adopted an Expense Reimbursement Plan whereby the Manager may seek repayment of such fee or voluntary reductions and expense reimbursements. Under the policy, the Manager can be reimbursed by the Funds for any contractual or voluntary fee reductions or expense reimbursements if reimbursement to the Manager (a) occurs within three years from the date of the Manager’s waiver/reimbursement and (b) does not cause the 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 2025 and 2026. The Funds did not record a liability for potential reimbursements due to the current assessment that reimbursements are uncertain. The carryover of excess expenses potentially reimbursable to the Manager, but not recorded as a liability are as follows:

Fund	Recouped Expenses		Excess Expense Carryover		Expired Expense Carryover		Expiration of Reimbursed Expenses
NIS Core Plus Bond	$	-	$	211,375	$	-	$	2023-2024
NIS Core Plus Bond		-		271,174		-		2024-2025

Sales Commissions

The Funds’ Distributor, Resolute Investment Distributors, Inc. (“RID” or “Distributor”), may receive a portion of A Class sales charges from broker dealers which may be used to offset distribution related expenses. During the year ended January 31, 2023, RID collected $1,364 for Developing World Income Fund from the sale of A Class Shares. There were no sales charges collected for A Class Shares of NIS Core Plus Bond Fund.

A CDSC of 0.50% will be deducted with respect to A Class Shares on certain purchases of $1,000,000 or more that are redeemed in whole or part within 18 months of purchase, unless waived as discussed in the 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 A Class Shares redeemed. During the year ended January 31, 2023, there were no CDSC fees collected for the A Class Shares of the Funds.

A CDSC of 1.00% will be deducted with respect to C Class Shares redeemed within 12 months of purchase, unless waived as discussed in the 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 C Class Shares redeemed. During the year ended January 31, 2023, CDSC fees of $272 were collected for the C Class Shares of Developing World Income Fund. There were no CDSC fees collected for the C Class Shares of NIS Core Plus Bond Fund.

43

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

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 January 31, 2023, one shareholder has been identified as representing an affiliated significant ownership of approximately 67% for the NIS Core Plus Bond Fund.

Trustee Fees and Expenses

As compensation for their service to the American Beacon Funds Complex, including the Trust (collectively, the “Trusts”), each Trustee is compensated from the Trusts as follows: (1) an annual retainer of $130,000; (2) meeting attendance fee (for attendance in-person or via teleconference) of (a) $12,000 for in person attendance, or $5,000 for telephonic attendance, by Board members for each regularly scheduled or special Board meeting, (b) $2,500 for attendance by Committee members at meetings of the Audit and Compliance Committee and the Investment Committee, (c) $1,000 for attendance by Committee members at meetings of the Nominating and Governance Committee; and (d) $2,500 for attendance by Board members for each special telephonic Board meeting; and (3) reimbursement of reasonable expenses incurred in attending Board meetings, Committee meetings, and relevant educational seminars. For this purpose, the Board considers attendance at regular meetings held by video conference to constitute in-person attendance at a Board meeting. The Trustees also may be compensated for attendance at special Board and/or Committee meetings from time to time. For her service as Board Chair, Ms. Cline receives an additional annual retainer of $50,000. Although she attends several committee meetings at each quarterly Board meeting, she receives only a single $2,500 fee each quarter for her attendance at those meetings. The chairpersons of the Audit and Compliance Committee and the Investment Committee each receive an additional annual retainer of $25,000 and the Chair of the Nominating and Governance Committee receives an additional annual retainer of $10,000.

3.  Security Valuation and Fair Value Measurements

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

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

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

The valuation of securities traded on foreign markets and certain fixed-income securities will generally be based on prices determined as of the earlier closing time of the markets on which they primarily trade unless a

44

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

significant event has occurred. When a Fund holds securities or other assets that are denominated in a foreign currency, a Fund will normally use the currency exchange rates as of 4:00 p.m. ET.

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

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

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

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

45

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

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 a Fund’s own assumptions about the factors market participants would use in pricing an investment.

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

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

Common stocks, ETFs and financial derivative instruments, such as futures contracts 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.

Mortgage-related and asset-backed securities (“ABS”) 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 ABS that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

With respect to a Fund’s investments that do not have readily available market quotations, the Board has designated the Adviser as its valuation designee to perform fair valuations pursuant to Rule 2a-5 under the Act (the “Valuation Designee”). If market prices are not readily available or are deemed unreliable, the Valuation Designee will use the fair value of the security or other instrument as determined in good faith under policies and procedures established by and under the supervision of the Board (“Valuation Procedures”). Market prices are considered not readily available 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 NYSE Close, that materially affect the values of a Fund’s portfolio holdings or assets. In addition, market prices are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities or other instruments trade do not open for trading for the entire day and no other market prices are available. Fair value pricing is subjective in nature and the use of fair value pricing by the Valuation Designee may cause the NAV of a Fund’s shares to differ significantly from the NAV that would have been calculated using market prices at the close of the exchange on which a portfolio holding is primarily traded. There can be no assurance that a Fund could obtain the fair value assigned to an investment if a Fund were to sell the investment at approximately the time at which a Fund determines its NAV.

46

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

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.

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

4.  Securities and Other Investments

Asset-Backed Securities (“ABS”)

ABS are securities issued by trusts and special purpose entities that are backed by pools of assets, such as automobile and credit-card receivables, home equity loans, and student loans, which pass through the payments on the underlying obligations to the security holders (less servicing fees paid to the originator or fees for any credit enhancement). Typically, loans or accounts receivable paper are transferred from the originator to a specially created trust, which repackages the trust’s interests as securities with a minimum denomination and a specific term. The securities are then privately placed or publicly offered. Examples include certificates for automobile receivables or credit card receivables. The NIS Core Plus Bond Fund is permitted to invest in ABS, subject to the Fund’s rating and quality requirements.

The value of an ABS is affected by, among other things, changes in the market’s perception of the asset backing the security, the creditworthiness of the servicing agent for the loan pool, the originator of the loans and the financial institution providing any credit enhancement. Payments of principal and interest passed through to holders of ABS are frequently supported by some form of credit enhancement, such as a letter of credit, surety bond, limited guarantee by another entity or by having a priority to certain of the borrower’s other assets. The degree of credit enhancement varies, and generally applies to only a portion of the ABS’s par value. Value is also affected if any credit enhancement has been exhausted.

Commercial Mortgage-Backed Securities (“CMBS”)

CMBS include securities that reflect an interest in, and are secured by, mortgage loans on commercial real estate property. CMBS are generally multi-class or passthrough securities backed by a mortgage loan or a pool of mortgage loans secured by commercial property, such as industrial and warehouse properties, office buildings, retail space and shopping malls, multifamily properties and cooperative apartments. CMBS may be structured with multiple tranches, with subordinate tranches incurring greater risk of loss in exchange for a greater yield. The commercial mortgage loans that underlie CMBS often are structured so that a substantial portion of the loan principal, rather than being amortized over the loan term, is instead payable at maturity (as a “balloon payment”). Repayment of a significant portion of loan principal thus often depends upon the future availability of real estate financing (to refinance the loan) and/or upon the value and sale ability of the real estate at the relevant time. If borrowers are not able or willing to refinance or dispose of the encumbered property to pay the principal and interest owed on such mortgage loans, payments on the related CMBS (particularly subordinated classes of CMBS) will likely be adversely affected. The ultimate extent of the loss, if any, may only be determined after a negotiated discounted settlement, restructuring or sale of the mortgage note, or the foreclosure of the mortgage encumbering the property and subsequent liquidation of the property, which can be costly and delayed by litigation and/or bankruptcy. The NIS Core Plus Bond Fund is permitted to invest in CMBS, subject to the Fund’s rating and quality requirements.

47

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

Collateralized Mortgage Obligations (“CMO”)

CMOs and interests in real estate mortgage investment conduits are debt securities collateralized by mortgages or mortgage pass-through securities. CMOs divide the cash flow generated from the underlying mortgages or mortgage passthrough securities into different groups referred to as “tranches,” which are then retired sequentially over time in order of priority. The principal governmental issuers of such securities are the Federal National Mortgage Association (“FNMA”), a government-sponsored corporation owned entirely by private stockholders, and the Federal Home Loan Mortgage Corp (“FHLMC”), a corporate instrumentality of the United States created pursuant to an act of Congress that is owned entirely by the Federal Home Loan Banks. The issuers of CMOs are structured as trusts or corporations established for the purpose of issuing such CMOs and often have no assets other than those underlying the securities and any credit support provided. A Real Estate Mortgage Investment Conduit (“REMIC”), is a mortgage securities vehicle that holds residential or commercial mortgages and issues securities representing interests in those mortgages. A REMIC may be formed as a corporation, partnership, or segregated pool of assets. A REMIC itself is generally exempt from federal income tax, but the income from its mortgages is taxable to its investors. For investment purposes, interests in REMIC securities are virtually indistinguishable from CMOs. The NIS Core Plus Bond Fund is permitted to invest in CMOs, subject to the Fund’s rating and quality requirements.

Credit-Linked Notes

The Developing World Income Fund may invest in credit-linked notes (“CLNs”). CLNs are derivative debt obligations that are issued by limited purpose entities, such as Special Purpose Vehicles (“SPVs”), or by financial firms, such as banks, securities firms or their affiliates. They are structured so that their performance is linked to that of an underlying bond or other debt obligation (a “reference asset”), normally by means of an embedded or underlying credit default swap. The reference assets for the CLNs in which the Fund may invest will be limited to sovereign or quasi-sovereign debt instruments or other investments in which the Fund’s investment policies permit it to invest directly. The Fund may invest in CLNs when the Fund’s Sub-Advisor believes that doing so is more efficient than investing in the reference assets directly or when such direct investment by the Fund is not feasible due to legal or other restrictions.

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

CLNs are debt obligations of the CLN issuers, and the Fund would have no ownership or other property interest in the reference assets (other than following a credit event that results in the reference assets being delivered to the Fund) or any direct recourse to the issuers of those reference assets. Thus, the Fund will be exposed to the credit risk of the issuers of the reference assets that underlie its CLNs, as well as to the credit risk of the issuers of the CLNs themselves. CLNs will also be subject to currency risk, liquidity risk, valuation risks, and the other risks of a credit default swap. Various determinations that may need to be made with respect to the CLNs, including the occurrence of a credit event, the selection of deliverable assets (where applicable) and the

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valuation of the reference asset for purposes of determining any cash settlement amount, normally will be made by the issuer or sponsor of the CLN. The interests of such issuer or sponsor may not be aligned with those of the Fund or other investors in the CLN. Accordingly, CLNs may also be subject to potential conflicts of interest. There may be no established trading market for the Fund’s CLNs, in which event they may constitute illiquid investments.

Fixed-Income Investments

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

Foreign Debt Securities

The Funds may invest in foreign fixed and floating rate income securities (including developing 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. The cost of servicing foreign debt will generally be adversely affected by rising international interest rates, because many external debt obligations bear interest at rates which are adjusted based upon international interest rates. The Fund’s foreign debt securities may be held outside of the United States in the primary market for the securities in the custody of certain eligible foreign banks and trust companies, as permitted under the Investment Company Act. Investing in the securities of foreign issuers involves special considerations that are not typically associated with investing in the securities of U.S. issuers and the risks similar to those of foreign securities , such as the fact that foreign markets can be extremely volatile, foreign debt securities may be less liquid than securities of U.S. issuers, and transaction fees, custodial costs, currency conversion costs and other fees are generally higher for foreign debt securities. In addition, developing 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

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January 31, 2023

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. The prices of such securities may be more volatile than those of domestic securities. Equity securities may trade at price/earnings multiples higher than comparable U.S. securities, and such levels may not be sustainable. The economies of many of the countries in which the Fund may invest are not as developed as the U.S. economy, and individual foreign economies can differ favorably or unfavorably from the U.S. economy in such respects as growth of gross national product, rate of inflation, capital reinvestment, resource self-sufficiency, and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory measures.

Developing Market Investments

The Funds may invest in the securities and derivatives with exposure to various countries with developing capital markets. Investments in the securities and derivatives with exposure to countries with developing capital markets involve significantly higher risks not involved in investments in securities in more developed capital markets, such as (i) low or non-existent trading volume, resulting in a lack of liquidity and increased volatility in prices for such securities, as compared to securities from more developed capital markets, (ii) uncertain national policies and social, political and economic instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of inflation or unfavorable diplomatic developments, (iii) possible fluctuations in exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other non-U.S. or U.S. governmental laws or restrictions applicable to such investments, (iv) national policies that may limit the Fund’s investment opportunities such as restrictions on investment in issuers or industries deemed sensitive to national interests, (v) the lack or relatively early development of legal structures governing private and foreign investments and private property, and (vi) less diverse or immature economic structures. In addition to withholding taxes on investment income, some countries with developing capital markets may impose differential capital gain taxes on foreign investors.

Illiquid and Restricted Securities

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

In recognition of the increased size and liquidity of the institutional market for unregistered securities and the importance of institutional investors in the formation of capital, the SEC adopted Rule 144A under the Securities Act. Rule 144A is designed to facilitate efficient trading among institutional investors by permitting the sale of certain unregistered securities to qualified institutional buyers. To the extent privately placed securities

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January 31, 2023

held by a Fund qualify under Rule 144A and an institutional market develops for those securities, a Fund likely will be able to dispose of the securities without registering them under the Securities Act. To the extent that institutional buyers become, for a time, uninterested in purchasing these securities, investing in Rule 144A securities could increase the level of a Fund’s illiquidity. The Manager or the Sub-Advisor, as applicable, may determine that certain securities qualified for trading under Rule 144A are liquid. Regulation S under the Securities Act permits the sale abroad of securities that are not registered for sale in the United States and includes a provision for U.S. investors, such as a Fund, to purchase such unregistered securities if certain conditions are met.

Securities sold in private placement offerings made in reliance on the “private placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act and resold to qualified institutional buyers under Rule 144A under the Securities Act (“Section 4(a)(2) securities”) are restricted as to disposition under the federal securities laws, and generally are sold to institutional investors, such as a Fund, that agree they are purchasing the securities for investment and not with an intention to distribute to the public. Any resale by the purchaser must be pursuant to an exempt transaction and may be accomplished in accordance with Rule 144A. Section 4(a)(2) securities normally are resold to other institutional investors through or with the assistance of the issuer or dealers that make a market in the Section 4(a)(2) securities, thus providing liquidity. The Manager and the sub-advisor will carefully monitor a Fund’s investments in Section 4(a)(2) securities offered and sold under Rule 144A, focusing on such important factors, among others, as valuation, liquidity, and availability of information. Investments in Section 4(a)(2) securities could have the effect of reducing a Fund’s liquidity to the extent that qualified institutional buyers no longer wish to purchase these restricted securities.

Limitations on resale may have an adverse effect on the marketability of portfolio securities, and a Fund might be unable to dispose of restricted or other illiquid securities promptly or at reasonable prices and might thereby experience difficulty satisfying redemptions within seven calendar days. However, the fact that there are contractual or legal restrictions on resale of such investments to the general public or to certain institutions may not be indicative of their liquidity. In addition, a Fund may get only limited information about an issuer, so it may be less able to predict a loss. A Fund also might have to register such restricted securities in order to dispose of them resulting in additional expense and delay. Adverse market conditions could impede such a public offering of securities. The illiquidity of the market, as well as the lack of publicly available information regarding these securities, also may make it difficult to determine a fair value for certain securities for purposes of computing the Fund’s NAV.

Restricted securities outstanding during the year ended January 31, 2023 are disclosed in the Notes to the Schedules of Investments.

Inflation-Indexed Linked Securities

The Funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted based on the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statements of Operations, even though investors do not receive their principal until maturity.

Municipal Securities

Municipal securities may include general obligation bonds, municipal lease obligations, resource recovery obligations, and revenue obligations. The NIS Core Plus Bond Fund may invest in municipal securities the interest on which is excludable from gross income for federal income tax purposes (“tax-exempt”), as well as municipal securities the interest on which is taxable. 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 making the possibility of their

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January 31, 2023

defaulting on obligations, and/or declaring bankruptcy where allowable, a risk to the value of municipal securities held by the Fund. General obligation bonds are secured by the pledge of the issuer’s full faith, credit, and usually, taxing power. The taxing power may be an unlimited ad valorem tax or a limited tax, usually on real estate and personal property. Most states do not tax real estate, but leave that power to local units of government. Municipal lease obligations are issued by state and local governments and authorities to acquire land and a wide variety of equipment and facilities. These obligations typically are not fully backed by the municipality’s credit and thus interest thereon may become taxable if the lease is assigned. If funds are not appropriated for the following year’s lease payments, a lease may terminate with the possibility of default on the lease obligation. Resource recovery obligations are a type of municipal revenue obligation issued to build facilities such as solid waste incinerators or waste-to-energy plants. Usually, a private corporation will be involved and the revenue cash flow will be supported by fees or units paid by municipalities for use of the facilities. The viability of a resource recovery project, environmental protection regulations and project operator tax incentives may affect the value and credit quality of these obligations. Revenue obligations are backed by the revenue cash flow of a project or facility. The interest on such obligations is payable only from the revenues derived from a particular project, facility, specific excise tax or other revenue source. Revenue obligations are not a debt or liability of the local or state government and do not obligate that government to levy or pledge any form of taxation or to make any appropriation for payment.

Other Investment Company Securities and Other Exchange-Traded Products

The Funds at times may invest in shares of other investment companies, including open-end funds, closed-end funds, business development companies (“BDCs”), ETFs, unit investment trusts, and other investment companies of the Trust. The Funds may invest in securities of an investment company advised by the Manager or the 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.

The Funds can invest free cash balances in registered open-end investment companies regulated as money market funds under the Act, to provide liquidity or for defensive purposes. The Funds could invest in money market funds rather than purchasing individual short-term investments. If the Funds invest in money market funds, shareholders will bear their proportionate share of the expenses, including for example, advisory and administrative fees, of the money market funds in which the Funds invest, including advisory fees charged by the Manager to any applicable money market funds advised by the Manager.

Although a money market fund is designed to be a relatively low risk investment, it is not free of risk. Despite the short maturities and high credit quality of a money market fund’s investments, increases in interest rates and deteriorations in the credit quality of the instruments the money market fund has purchased may reduce the money market fund’s yield and can cause the price of a money market security to decrease. In addition, a money market fund is subject to the risk that the value of an investment may be eroded over time by inflation.

Real Estate Related Investments

A Fund may gain exposure to the real estate sector by investing in real estate-linked derivatives, REITs, and common, preferred and convertible securities of issuers in real estate-related industries. Adverse economic, business or political developments affecting real estate could have a major effect on the value of a Fund’s investments. Investing in securities issued by real estate and real estate-related companies may subject the Fund to risks associated with the direct ownership of real estate. Changes in interest rates, debt leverage ratios, debt maturity schedules, and the availability of credit to real estate companies may also affect the value of the Funds

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January 31, 2023

investment in real estate securities. Real estate securities are dependent upon specialized management skills at the operating company level, have limited diversification and are, therefore, subject to risks inherent in operating and financing a limited number of properties. Real estate securities are also subject to heavy cash flow dependency and defaults by borrowers. The real estate industry tends to be cyclical. Such cycles may adversely affect the value of a Fund’s portfolio. A Fund will indirectly bear a proportionate share of a REIT’s ongoing operating fees and expense. In addition, a REIT is subject to the possibility of failing to (a) qualify for tax-free “pass-through” of distributed net income and net realized gains under the Internal Revenue Code and (b) maintain exemption eligibility from Investment Company Act registration requirements.

Sovereign and Quasi-Sovereign Government and Supranational Debt

The Funds can invest in debt securities issued or guaranteed by foreign governments and their political subdivisions or agencies which involve special risks. Sovereign debt differs from debt obligations issued by private entities in that, generally, remedies for defaults must be pursued in the courts of the defaulting party. Sovereign debt securities may include: debt securities issued or guaranteed by governments, governmental agencies or instrumentalities and political subdivisions located in frontier and emerging market countries; debt securities issued by government owned, controlled or sponsored entities located in frontier and emerging market countries; interests in entities organized and operated for the purpose of restructuring the investment characteristics of instruments issued by government owned, controlled or sponsored entities located in frontier and emerging market countries; interests in entities organized and operated for the purpose of restructuring the investment characteristics of instruments issued by any of the above issuers; participations in loans between frontier and emerging market governments and financial institutions; and Brady Bonds, which are debt securities issued under the framework of the Brady Plan as a means for debtor nations to restructure their outstanding external indebtedness.

Supranational entities may also issue debt securities. Supranational organizations are entities designated or supported by a government or governmental group to promote economic development. Included among these organizations are the Asian Development Bank, the European Investment Bank, the Inter-American Development Bank, the International Monetary Fund, the United Nations, the World Bank and the European Bank for Reconstruction and Development. Supranational organizations have no taxing authority and are dependent on their members for payments of interest and principal to the extent their assets are insufficient. Further, the lending activities of such entities are limited to a percentage of their total capital, reserves and net income.

Variable or Floating Rate Obligations

The 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.

The Funds may invest in floating rate debt instruments (“floaters”) and engage in credit spread trades. The interest rate on a floater is a variable rate which is tied to another interest rate, such as a money-market index or U.S. Treasury bill rate. The interest rate on a floater resets periodically, typically every six months. While, because of the interest rate reset feature, floaters provide the Funds with a certain degree of protection against rises in interest rates, the Funds will participate in any declines in interest rates as well. A credit spread trade is an investment position relating to a difference in the prices or interest rates of two securities or currencies, where the value of the investment position is determined by movements in the difference between the prices or interest rates, as the case may be, of the respective securities or currencies.

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January 31, 2023

U.S. Agency Obligations - Federal National Mortgage Association (“FNMA”)

FNMA Guaranteed Mortgage Pass-Through Certificates or Fannie Maes represent an undivided interest in a pool of conventional mortgage loans secured by first mortgages or deeds of trust, on one family or two to four family, residential properties. The FNMA is obligated to distribute scheduled monthly installments of principal and interest on the mortgages in the pool, whether or not received, plus full principal of any foreclosed or otherwise liquidated mortgages. The obligation of the FNMA under its guarantee is solely its obligation and is not backed by, nor entitled to, the full faith and credit of the United States.

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.

5.  Financial Derivative Instruments

The Funds may utilize derivative instruments to enhance return, hedge risk, gain efficient exposure to an asset class or to manage liquidity. When considering the Funds’ use of derivatives, it is important to note that the Funds do not use derivatives for the purpose of creating financial leverage.

Forward Foreign Currency Contracts

The Funds may have exposure to foreign currencies for investment or hedging purposes by purchasing or selling forward currency exchange contracts in non-U.S. currencies and by purchasing securities denominated in non-U.S. currencies. Foreign currencies may decline in value relative to the U.S. dollar and affect a Fund’s investments in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies. Not all forward contracts require a counterparty to post collateral, which may expose a Fund to greater losses in the event of a default by a counterparty. Forward contracts are two-party contracts pursuant to which one party agrees to pay the counterparty a fixed price for an agreed upon amount of securities, or the cash value of the securities or the securities index, at an agreed upon future date. A forward currency contract is an obligation to buy or sell a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. Non-Deliverable Forward (“NDF”) currency contract is a forward contract where there is no physical settlement of the two currencies at maturity. Rather, on the contract settlement date, a net cash settlement will be made by one party to the other based on the difference between the contracted forward rate and the prevailing spot rate, on an agreed notional amount.

During the year ended January 31, 2023, the Developing World Income Fund entered into forward foreign currency contracts primarily for taking exposure to foreign currencies or return enhancement and hedging foreign currency fluctuations.

The Developing World Income 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 Year Ended January 31, 2023
Fund	Purchased Contracts		Sold Contracts
Developing World Income	$	883,578	$	37,184,520

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January 31, 2023

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

Fair values of financial instruments on the Statements of Assets and Liabilities as of January 31, 2023:
	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		$	–		$	3,995			$	–		$	–		$	–		$	3,995
Liabilities:	Credit contracts			Foreign exchange contracts				Commodity contracts			Interest rate contracts			Equity contracts			Total
Unrealized depreciation of forward foreign currency contracts		$	–		$	(163,884	)		$	–		$	–		$	–		$	(163,884	)
The effect of financial derivative instruments on the Statements of Operations as of January 31, 2023:
	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		$	–		$	1,678,615			$	–		$	–		$	–		$	1,678,615
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		$	–		$	(452,768	)		$	–		$	–		$	–		$	(452,768	)

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

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, if applicable. The net amount represents the net receivable or payable that would be due from or to the counterparty in the event of default. Exposure from borrowings and other financing agreements such as repurchase agreements can only be netted across transactions governed by the same Master Agreement with the same legal entity. All amounts reported below represent the balance as of the report date, January 31, 2023.

Developing World Income Fund

Offsetting of Financial and Derivative Assets as of January 31, 2023:
	Assets		Liabilities
Forward Foreign Currency Contracts	$	3,995	$	163,884
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	3,995	$	163,884
Total derivative assets and liabilities subject to an MNA	$	3,995	$	163,884

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January 31, 2023

Financial Assets, Derivatives, and Collateral Received/(Pledged) by Counterparty as of January 31, 2023:
	Gross Amounts of Assets Presented in the Statements of Assets and Liabilities		Derivatives Available for Offset		Gross Amounts Not Offset in the Statements of Assets and Liabilities				Net Amount
Counterparty					Non-Cash Collateral Pledged(1)		Cash Collateral Pledged(1)
Hongkong and Shanghai Banking Corporation Ltd.	$	3,995	$	-	$	-	$	-	$	3,995
	Gross Amounts of Liabilities Presented in the Statements of Assets and Liabilities		Derivatives Available for Offset		Gross Amounts Not Offset in the Statements of Assets and Liabilities				Net Amount
Counterparty					Non-Cash Collateral Received(1)		Cash Collateral Received(1)
Barclays Bank PLC	$	23,881	$	-	$	-	$	-	$	23,881
JPMorgan Chase Bank N.A.		2,309		-		-		-		2,309
Merrill Lynch International		130,585		-		-		-		130,585
State Street Bank & Trust Co.		7,109		-		-		-		7,109
Total	$	163,884	$	-	$	-	$	-	$	163,884

⁽¹⁾ The actual collateral received/pledged may be more than the amount reported due to overcollateralization.

6.  Principal Risks

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

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, interest rate risk, prepayment risk and extension 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 Fund. A Collateralized Mortgage Obligation (“CMO”) is a hybrid between a mortgage-backed bond and a mortgage pass-through security. Similar to a bond, interest and prepaid principal on CMOs is paid, in most cases, semiannually. CMOs may be collateralized by whole mortgage loans, but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed by government agencies, and their income streams. CMOs may offer a higher yield than U.S. government securities, but they may also be subject to greater price fluctuation and credit risk. Commercial mortgage-backed securities (“CMBS”) include securities that reflect an interest in, and are secured by, mortgage loans on commercial real property. CMBS are subject to the risks generally associated with mortgage-backed securities. CMBS may not be backed by the full faith and credit of the U.S. Government and are subject to risk of default on the underlying mortgages. CMBS also are subject to many of the risks of investing in the real estate securing the underlying mortgage loans. These risks reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make loan payments, and the ability of a property to attract and retain tenants.

Counterparty Risk

The Funds are subject to the risk that a party or participant to a transaction, such as a broker or derivative counterparty, will be unwilling or unable to satisfy its obligation to make timely principal, interest or settlement payments or to otherwise honor its obligations to the Funds. As a result, a 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 a Fund to greater losses in the event of a default by a counterparty.

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January 31, 2023

Credit Risk

The Funds are subject to the risk that the issuer or guarantor of an obligation, or the counterparty to a transaction, including a derivatives contract or a loan, may fail, or become less able, to make timely payments of interest or principal or otherwise honor its obligations or default completely. The strategies utilized by the sub-advisor require accurate and detailed credit analysis of issuers and there can be no assurance that its analysis will be accurate or complete. The Funds may be subject to substantial losses in the event of credit deterioration or bankruptcy of one or more issuers in its portfolio. Financial strength and solvency of an issuer are the primary factors influencing credit risk. In addition, inadequacy of collateral or credit enhancement for a debt instrument may affect its credit risk. Credit risk may change over the life of an instrument and debt obligations which are rated by rating agencies may be subject to downgrade. The credit ratings of debt instruments and investments represent the rating agencies’ opinions regarding their credit quality and are not a guarantee of future credit performance of such securities. Rating agencies attempt to evaluate the safety of the timely payment of principal and interest (or dividends) and do not evaluate the risks of fluctuations in market value. The ratings assigned to securities by rating agencies do not purport to fully reflect the true risks of an investment. Further, in recent years many highly-rated structured securities have been subject to substantial losses as the economic assumptions on which their ratings were based proved to be materially inaccurate. A decline in the credit rating of an individual security held by a Fund may have an adverse impact on its price and may make it difficult for a Fund to sell it. Ratings represent a rating agency’s opinion regarding the quality of the security and are not a guarantee of quality. Rating agencies might not always change their credit rating on an issuer or security in a timely manner to reflect events that could affect the issuer’s ability to make timely payments on its obligations. Credit risk is typically greater for securities with ratings that are below investment grade (commonly referred to as “junk bonds”). Since a Fund can invest significantly in high yield investments that are considered speculative in nature, this risk maybe substantial. Changes in the actual or perceived creditworthiness of an issuer, or a downgrade or default affecting any of a Fund’s securities, could affect a Fund’s performance.

Currency Risk

The Funds may have exposure to foreign currencies by using various instruments described below. Foreign currencies may fluctuate significantly over short periods of time, may be affected unpredictably by intervention, or the failure to intervene, of the U.S. or foreign governments or central banks, and may be affected by currency controls or political developments in the U.S. or abroad. Foreign currencies may also decline in value relative to the U.S. dollar and other currencies and thereby affect the Funds’ investments in non-U.S. currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, non U.S. currencies.

Custody Risk

The Funds may invest in markets that are less developed than those in the U.S., which may expose the Funds to risks in the process of clearing and settling trades and the holding of securities by foreign banks, agents and depositories. Investments in frontier and emerging markets may be subject to greater custody risks than investments in more developed markets.

Derivatives Risk

Derivatives may involve significant risk. The use of derivative instruments may expose a Fund to additional risks that it would not be subject to if it invested directly in the securities or other instruments underlying those securities. Derivatives can be highly complex and their use within a management strategy can require specialized skills. There can be no assurance that any strategy used will succeed. If a sub-advisor incorrectly forecasts stock market values, or the direction of interest rates or currency exchange rates in utilizing a specific derivatives strategy for a Fund, a Fund could lose money. In addition, leverage embedded in a derivative instrument can expose a Fund to greater risk and increase its costs. Gains or losses in the value of a derivative instrument may be magnified and be much greater than the derivative’s original cost (generally the initial margin deposit). There may also be material and prolonged deviations between the theoretical value and realizable value of a derivative. Some

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derivatives have the potential for unlimited loss, regardless of the size of a Fund’s initial investment, for example, where a Fund may be called upon to deliver a security it does not own. As a result, a Fund could lose more than the amount it invests. Derivatives may at times be illiquid and may be more volatile than other types of investments. A Fund may not be able to close out or sell a derivative position at a particular time or at an anticipated price. Certain derivatives may also be difficult to value, and valuation may be more difficult in times of market turmoil.

A Fund may buy or sell derivatives not traded on organized exchanges. A Fund may also enter into transactions that are not cleared through clearing organizations. These types of transactions may be subject to heightened liquidity and valuation risk. Derivative investments can increase portfolio turnover and transaction costs. Derivatives also are subject to counterparty risk and credit risk. As a result, a Fund may not recover 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 a Fund to greater losses in the event of a default by a counterparty. Certain derivatives require a Fund to post margin to secure its future obligation; if a Fund has insufficient cash, it may have to sell investments from its portfolio to meet daily variation margin requirements at a time when it maybe disadvantageous to do so. A Fund’s use of derivatives also may create financial leverage, which may result in losses that exceed the amount originally invested and accelerate the rate of losses. Suitable derivatives may not be available in all circumstances, and there can be no assurance that a Fund will use derivatives to reduce exposure to other risks when that might have been beneficial. Because the markets for certain derivative instruments (including markets located in foreign countries) are relatively new and still developing, suitable derivatives transactions may not be available in all circumstances for risk management or other purposes. Upon the expiration of a particular contract, a sub-advisor may wish to retain a Fund’s position in the derivative instrument by entering into a similar contract, but may be unable to do so if the counterparty to the original contract is unwilling to enter into the new contract and no other suitable counterparty can be found.

Although a Fund may attempt to hedge against certain risks, the hedging instruments may not perform as expected and could produce losses. Hedging instruments may also reduce or eliminate gains that may otherwise have been available had a Fund not used the hedging instruments. A Fund may not hedge certain risks in particular situations, even if suitable instruments are available.

A Fund’s ability to use derivatives may also be limited by certain regulatory and tax considerations. Ongoing changes to the regulation of the derivatives markets and potential changes in the regulation of funds using derivative instruments could limit a Fund’s ability to pursue its investment strategies. The extent and impact of the regulation is not yet fully known and may not be for some time. New regulation may make derivatives more costly, may limit their availability, may disrupt markets, or may otherwise adversely affect their value or performance. In addition to other changes, these rules provide for central clearing of derivatives that in the past were traded exclusively over-the counter and may increase costs and margin requirements, but are expected to reduce certain counterparty risks.

Developing Markets Risk

When investing in developing markets, the risks of investing in foreign securities are heightened. Developing markets have unique risks that are greater than, or in addition to, the risks associated with investing in developed markets because developing markets are generally smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other developed markets. There are also risks of: greater political and economic uncertainties; an economy’s dependence on revenues from particular commodities or on international aid or development assistance; currency transfer restrictions; the imposition of economic sanctions or other government restrictions; a limited number of potential buyers for such securities, resulting in increased volatility and limited liquidity for developing market securities; trading suspensions and other restrictions on investment; delays and disruptions in securities settlement procedures; greater sensitivity to interest rate changes; currency exchange rate volatility and currency inflation or deflation; and significant limitations on investor rights and recourse. The economies and political environments of developing market countries tend to be more unstable than those of developed countries, resulting in more volatile rates of return than the developed markets and substantially greater risk to investors. The governments of developing market countries may also be more unstable and more

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likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, intervene in the financial markets, and/or impose burdensome taxes that could adversely affect security prices.

Developing market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and less reliable clearance and settlement, registration, and custodial procedures. In addition, there may be less publicly available or less reliable information about issuers in developing markets than would be available about issuers in developed markets, which can impede a sub-advisor’s ability to accurately evaluate foreign securities. Such issuers may not be subject to accounting, auditing and financial reporting standards and requirements comparable to those to which U.S. companies are subject. Certain developing market countries have material limitations on Public Company Accounting Oversight Board (“PCAOB”) inspection, investigation and enforcement capabilities, which hinder the ability to engage in independent oversight or inspection of accounting firms located in or operating in certain developing markets; therefore, there is no guarantee that the quality of financial reporting or the audits conducted by audit firms of such developing market issuers meet PCAOB standards. Developing markets may possess less developed regulatory or legal structures governing private and foreign investment. In certain developing market countries, market manipulation, fraud and corruption may be more prevalent than in developed market countries, and investor protections may be more limited than those in other countries. It may be difficult to obtain or enforce legal judgments against non-U.S. companies and non-U.S. persons in foreign jurisdictions, either through the foreign judicial system or through a private arbitration process. Certain developing markets also may face other significant internal or external risks, including a heightened risk of war or ethnic, religious or racial conflicts. Additional risks may include: inability to purchase and sell investments or otherwise settle security or derivative transactions (i.e., a market freeze); unavailability of currency hedging techniques; slower clearance and settlement; difficulties in obtaining and/or enforcing legal judgments; and significantly smaller market capitalizations of issuers. These matters have the potential to impact the Fund’s investment objectives and performance.

The risks of investing in developing market countries are magnified in developing market countries, which generally have smaller economies and less developed capital markets and legal, regulatory and political systems than other developing market countries. The magnification of risks is generally the result of: (1) the potential for extreme price volatility and illiquidity in developing markets; (2) government ownership or control of parts of the private sector or other protectionist measures, including managed adjustments in relative currency values, trade barriers, and exchange controls; (3) large currency fluctuations; (4) fewer companies and investment opportunities; or (5) inadequate investor protections and regulatory enforcement, and the relatively new and unsettled securities laws in many developing countries. Investments that the Fund holds may be exposed to these risks, which could have a negative impact on their value.

Environmental, Social, and/or Governance Investing Risk

The Developing World Income Fund’s incorporation of environmental, social and/or governance (“ESG”) considerations, including criteria as determined by the sub-advisor, in its investment strategy may cause it to make different investments than funds that have a similar investment style but do not incorporate such considerations in their strategy. As with the use of any investment considerations involved in investment decisions, there is no guarantee that the ESG investment considerations used by a Fund will result in the selection of issuers that will outperform other issuers or help reduce risk in a Fund. A Fund’s ESG investment considerations may also affect a Fund’s exposure to certain sectors or types of investments, which may impact a Fund’s relative investment performance depending on the performance of issuers in those sectors relative to issuers in the broader market. A Fund may not be able to take advantage of certain investment opportunities due to these considerations, which may adversely affect investment performance. A Fund may underperform funds that do not incorporate these considerations. A Fund’s sub-advisor is dependent on available information to assist in the use of ESG investment considerations, and, because there are few generally accepted standards to use in such considerations, the information and considerations used for a Fund may differ from the information and considerations used for other funds. The limited availability of such information, as well as errors in or omissions from such information could result in incorrect evaluations of potential investments. There is no guarantee that a Fund’s efforts to select investments that meet a Fund’s ESG investing considerations will be successful.

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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, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased price volatility, (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets. To the extent the Funds invest a significant portion of its assets in securities of a single country or region, it is more likely to be affected by events or conditions of that country or region. In addition, the economies and political environments of developing market countries tend to be more unstable than those of developed countries, resulting in more volatile rates of return than the developed markets and substantially greater risk to investors. There may be very limited oversight of certain foreign banks or securities depositories that hold foreign securities and currency and the laws of certain countries may limit the ability to recover such assets if a foreign bank or depository or their agents goes bankrupt. When investing in developing markets, the risks of investing in foreign securities are heightened.

Interest Rate Risk

Investments in fixed-income securities or derivatives that are influenced by interest rates are subject to interest rate risk. The value of the Funds’ fixed-income investments typically will fall when interest rates rise. The Funds may be particularly sensitive to changes in interest rates if it invests in debt securities with intermediate and long terms to maturity. Debt securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than debt securities with shorter durations. For example, if a bond has a duration of four years, a 1% increase in interest rates could be expected to result in a 4% decrease in the value of the bond. Yields of debt securities will fluctuate over time. As of the date of this Prospectus, interest rates are historically low. During periods of very low or negative interest rates, the Funds may be unable to maintain positive returns. Certain European countries and Japan have recently experienced negative interest rates on deposits and debt securities have traded at negative yields. Negative interest rates may become more prevalent among non-U.S. issuers, and potentially within the United States. Changing interest rates, including rates that fall below zero, may have unpredictable effects on markets, may result in heightened market volatility and may detract from Fund performance to the extent the Funds are exposed to such interest rates. To the extent the Funds hold an investment with a negative interest rate to maturity, the Funds would generate a negative return on that investment. Conversely, in the future, interest rates may rise significantly and/or rapidly, potentially resulting in substantial losses to the Funds.

Leverage Risk

The Funds’ use of futures, forward foreign currency contracts, swaps, other derivative instruments and selling securities short will have the economic effect of financial leverage. Financial leverage magnifies the exposure to the swings in prices of an asset or class of assets underlying a derivative instrument and results in increased volatility, which means that the Funds will have the potential for greater losses than if the Funds do not use the derivative instruments that have a leveraging effect. Leverage may result in losses that exceed the amount originally invested and may accelerate the rate of losses. Leverage tends to magnify, sometimes significantly, the effect of an increase or decrease in the Funds’ exposure to an asset or class of assets and may cause the Funds’ NAV to be volatile.

LIBOR Risk

Certain of the instruments identified in a Fund’s principal investment strategies have variable or floating coupon rates that are based on LIBOR, Euro Interbank Offered Rate and other similar types of reference rates (each, a “Reference Rate”). These Reference Rates are generally intended to represent the rate at which contributing banks may obtain short-term borrowings from each other within certain financial markets. LIBOR is produced daily by averaging the rates reported by a number of banks and may be a significant factor in determining a Fund’s payment obligations under a derivative instrument, the cost of financing to a Fund, or an

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investment’s value or return to a Fund, and may be used in other ways that affect a Fund’s performance. Arrangements are underway to phase out the use of LIBOR. These arrangements and any additional regulatory or market changes may have an adverse impact on a Fund or its investments, including increased volatility or illiquidity in markets for instruments that rely on LIBOR.

Regulators and market participants are working together to identify or develop successor Reference Rates. Additionally, it is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or instruments may be amended, whether through marketwide protocols, fallback contractual provisions, bespoke negotiations or amendments or otherwise. Nonetheless, there remains uncertainty regarding the nature of any replacement rate and the impact of the transition from LIBOR on the Fund and the financial markets generally, and the termination of certain Reference Rates presents risks to a Fund. Financial industry groups have begun planning for a transition to the use of a different Reference Rate or benchmark rate, but there are obstacles to converting certain securities and transactions to a new Reference Rate or benchmark rate. The transition process, or the failure of an industry to transition, could lead to increased volatility and illiquidity in markets for instruments that currently rely on LIBOR to determine interest rates and a reduction in the values of some LIBOR-based investments, all of which would impact the Fund. While some LIBOR-based instruments may contemplate a scenario where LIBOR becomes unavailable by providing for an alternative rate-setting methodology, not all may have such provisions and there may be significant uncertainty regarding the effectiveness of any such methodologies. In addition, the alternative reference or benchmark rate may be an ineffective substitute, potentially resulting in prolonged adverse market conditions for a Fund. The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of Reference Rates could have an adverse impact on the market for or value of any securities or payments linked to those Reference Rates and other financial obligations held by a Fund or on its overall financial condition or results of operations. Any substitute Reference Rate and any pricing adjustments imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or NAV. At this time, it is not possible to completely identify or predict the effect of any such changes, any establishment of alternative Reference Rates or any other reforms to Reference Rates that may be enacted in the UK or elsewhere. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, any of the effects described above could occur prior to the official phasing out of LIBOR.

Liquidity Risk

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

Market Risk

The Funds are subject to the risk that the securities markets will move down, sometimes rapidly and unpredictably, based on overall economic conditions and other factors, which may negatively affect a Fund’s performance. Equity securities generally have greater price volatility than fixed-income securities, although under certain market conditions fixed-income securities may have comparable or greater price volatility. During a general downturn in the securities markets, multiple assets may decline in value simultaneously. In some cases, traditional market participants have been less willing to make a market in some types of debt instruments, which has affected the liquidity of those instruments. During times of market turmoil, investors tend to look to the safety of securities issued or backed by the U.S. Treasury, causing the prices of these securities to rise and the yields to decline. Reduced liquidity in fixed-income and credit markets may negatively affect many issuers worldwide. Prices in many financial markets have increased significantly over the last decade, but there have also been periods of adverse market and financial developments and cyclical change during that timeframe, which have resulted in unusually

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high levels of volatility in domestic and foreign financial markets that has caused losses for investors and may occur again in the future, particularly if markets enter a period of uncertainty or economic weakness. The value of a security may decline due to adverse issuer-specific conditions, general market conditions unrelated to a particular issuer, or factors that affect a particular industry or industries. Changes in the financial condition of a single issuer or market segment also can impact the market as a whole.

Geopolitical and other events, including war, terrorism, economic uncertainty, trade disputes, pandemics, public health crises, natural disasters and related events have led, and in the future may continue to lead, to instability in world economies and markets generally and reduced liquidity in equity, credit and fixed-income markets, which may disrupt economies and markets and adversely affect the value of your investment. Changes in value may be temporary or may last for extended periods.

Policy changes by the U.S. government and/or Federal Reserve and political events within the U.S. and abroad, including the U.S. presidential election, the U.S. government’s inability at times to agree on a long-term budget and deficit reduction plan, the threat of a federal government shutdown and threats not to increase the federal government’s debt limit, may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree.

Markets and market participants are increasingly reliant upon both publicly available and proprietary information data systems. Data imprecision, software or other technology malfunctions, programming inaccuracies, unauthorized use or access, and similar circumstances may impair the performance of these systems and may have an adverse impact upon a single issuer, a group of issuers, or the market at large. The financial markets generally move in cycles, with periods of rising prices followed by periods of declining prices. The value of your investment may reflect these fluctuations.

Market Timing Risk

The Developing World Income Fund is subject to the risk of market timing activities due to the nature of its investments, which requires the Fund in certain instances to fair value certain of its investments. Frequent trading by Fund shareholders poses risks to other shareholders in the Fund, including (i) the dilution of the Fund’s NAV, (ii) an increase in the Fund’s expenses, and (iii) interference with the portfolio manager’s ability to execute efficient investment strategies. Because of specific securities in which the Fund may invest, it could be subject to the risk of market timing activities by shareholders. Some examples of these types of securities are high-yield and foreign securities. The limited trading activity of some high-yield securities may result in market prices that do not reflect the true market value of these securities. The Fund generally prices foreign securities using their closing prices from the foreign markets in which they trade, typically prior to the Fund’s calculation of its NAV. These prices may be affected by events that occur after the close of a foreign market but before the Fund price its shares. In such instances, the Fund may fair value high yield and foreign securities. However, some investors may engage in frequent short-term trading in the Fund to take advantage of any price differentials that may be reflected in the NAV of the Fund’s shares. While the Manager monitors trading in the Fund, there is no guarantee that it can detect all market timing activities.

Municipal Securities Risk

The municipal securities market could be significantly affected by adverse political and legislative changes, as well as uncertainties related to taxation or the rights of municipal security holders. Changes in the financial health of a municipality may make it difficult for it to pay interest and principal when due. In addition, changes in the financial condition of one or more individual municipal issuers or insurers of municipal issuers can affect the overall municipal securities market. Changes in market conditions may directly impact the liquidity and valuation of municipal securities, which may, in turn, adversely affect the yield and value of the Fund’s municipal securities investments. Declines in real estate prices and general business activity may reduce the tax revenues of state and local governments. In recent periods an increasing number of municipal issuers have defaulted on obligations, been downgraded, or commenced insolvency proceedings. Financial difficulties of municipal issuers may continue or get

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worse. Because many municipal securities are issued to finance similar types of projects, especially those related to education, health care, housing, transportation, and utilities, conditions in those sectors can affect the overall municipal securities market.

Other Investment Companies Risk

To the extent that the Funds invest in shares of other registered investment companies, a Fund will indirectly bear the fees and expenses, including, for example, advisory and administrative fees, charged by those investment companies in addition to a Fund’s direct fees and expenses. If the Funds invest in other investment companies, a Fund may receive distributions of taxable gains from portfolio transactions by that investment company and may recognize taxable gains from transactions in shares of that investment company, which could be taxable to a Fund’s shareholders when distributed to them. The Funds must rely on the investment company in which it invests to achieve its investment objective. If the investment company fails to achieve its investment objective, the value of a Fund’s investment may decline, adversely affecting a Fund’s performance. To the extent the Funds invest in other investment companies that invest in equity securities, fixed-income securities and/or foreign securities, or that track an index, a Fund is subject to the risks associated with the underlying investments held by the investment company or the index fluctuations to which the investment company is subject.

Prepayment and Extension Risk

When interest rates fall, borrowers will generally repay the loans that underlie certain debt securities, especially mortgage-related and other types of ABS, more quickly than expected, causing the issuer of the security to repay the principal prior to the security’s expected maturity date. A Fund may need to reinvest the proceeds at a lower interest rate, reducing its income. Securities subject to prepayment risk generally offer less potential for gains when prevailing interest rates fall. If a Fund buys those securities at a premium, accelerated prepayments on those securities could cause a Fund to lose a portion of its principal investment. The impact of prepayments on the price of a security may be difficult to predict and may increase the security’s price volatility. 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.

Recent Market Events Risk

An outbreak of infectious respiratory illness caused by a novel coronavirus, known as COVID-19, was first detected in China in December 2019 and has subsequently spread globally. Transmission of COVID-19 and efforts to contain its spread have resulted, and may continue to result, in significant disruptions to business operations, widespread business closures and layoffs, travel restrictions, closed international, national and local borders, prolonged quarantines and stay-at-home orders, disruption of and delays in healthcare service preparation and delivery, service and event cancellations, and lower consumer demand, as well as general concern and uncertainty that has negatively affected the global economy. The impact of the pandemic has negatively affected and may continue to affect the economies of many nations, individual companies and the global securities and commodities markets, including their liquidity, in ways that cannot necessarily be foreseen at the present time. The pandemic has accelerated trends toward working remotely and shopping on-line, which may negatively affect the value of office and commercial real estate and companies that have been slow to transition to an on-line business model and has disrupted the supply chains that many businesses depend on. The travel, hospitality and public transit industries may suffer long-term negative effects from the pandemic and resulting changes to public behavior. Both U.S. and international markets have experienced significant volatility in recent months and years. As a result of such volatility, investment returns may fluctuate significantly. Moreover, the risks discussed herein associated with an investment in the Funds may be increased.

The Federal Reserve has spent hundreds of billions of dollars to keep credit flowing through the economy. However, the Federal Reserve recently began to reduce its interventions as the economy improved and inflation accelerated. Concerns about the markets’ dependence on the Federal Reserve’s provision of liquidity have grown

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as a result. High public debt in the U.S. and other countries creates ongoing systemic and market risks and policymaking uncertainty, and there may be a further increase in public debt due to the economic effects of the COVID-19 pandemic and ensuing economic relief and public health measures. Governments’ efforts to limit potential negative economic effects of the pandemic may be altered, delayed, or eliminated at inopportune times for political, policy or other reasons.

Interest rates have been unusually low in recent years in the U.S. and abroad, and central banks reduced rates further in an effort to combat the economic effects of the COVID-19 pandemic. Because there is little precedent for this situation, it is difficult to predict the impact on various markets of a significant rate increase or other significant policy changes. The U.S. Federal Reserve has started to raise interest rates beginning in 2022, in part to address an increase in the annual inflation rate in the U.S. Over the longer term, rising interest rates may present a greater risk than has historically been the case due to the current period of relatively low rates and the effect of government fiscal and monetary policy initiatives and potential market reaction to those initiatives or their alteration or cessation.

Slowing global economic growth, the risks associated with ongoing trade negotiations with China, the possibility of changes to some international trade agreements, tensions or open conflict between nations, such as between Russia and Ukraine, or political or economic dysfunction within some nations that are major producers of oil could affect the economies of many nations, including the United States, in ways that cannot necessarily be foreseen at the present time.

Economists and others have expressed increasing concern about the potential effects of global climate change on property and security values. Certain issuers, industries and regions may be adversely affected by the impacts of climate change, including on the demand for and the development of goods and services and related production costs, and the impacts of legislation, regulation and international accords related to climate change, as well as any indirect consequences of regulation or business trends driven by climate change.

Redemption Risk

The Funds may experience periods of heavy redemptions that could cause the Funds to sell assets at inopportune times or at a loss or depressed value. Redemption risk is greater to the extent that one or more investors or intermediaries control a large percentage of investments in the Funds, have short investment horizons, or have unpredictable cash flow needs. A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large scale, which may increase redemptions from mutual funds that hold large amounts of fixed-income securities. This, coupled with a reduction in the ability or willingness of dealers and other institutional investors to buy or hold fixed-income securities, may result in decreased liquidity and increased volatility in the fixed-income markets, and heightened redemption risk. Heavy redemptions, whether by a few large investors or many smaller investors, could hurt the Funds’ performance. This risk is heightened if the Fund invests in market securities, which are generally less liquid than the securities of U.S. and other developed markets. The sale of assets to meet redemption requests may create net capital gains or losses, which could cause the Funds to have to distribute substantial capital gains.

Sovereign and Quasi Sovereign Debt Risk

An investment in sovereign and quasi-sovereign debt obligations involves special risks not present in corporate debt obligations. Sovereign and quasi-sovereign debt securities. These investments are issued or guaranteed by a sovereign government or entity affiliated with or backed by a sovereign government. The issuer of the sovereign or quasi-sovereign debt that controls the repayment of the debt may be unable or unwilling to repay principal or interest when due, and the Funds may have limited recourse in the event of a default. In addition, these investments are subject to risk of payment delays or defaults due to (1) country cash flow problems, (2) insufficient foreign currency reserves, (3) political considerations, (4) large debt positions relative to the country’s economy, (5) policies toward foreign lenders or investors, (6) the failure to implement economic reforms required by the International Monetary Fund or other multilateral agencies, or (7) an inability or unwillingness to

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repay debts. It may be particularly difficult to enforce the rights of debt holders in frontier and emerging markets. A governmental entity that defaults on an obligation may request additional time in which to pay or receive further loans or may seek to restructure its obligations to reduce interest rates or outstanding principal. There is no legal process for collecting sovereign and quasi-sovereign debt that a government does not pay nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected. Sovereign and quasi-sovereign debt risk is increased for emerging and frontier markets issuers, which are among the largest debtors to commercial banks and foreign governments. At times, certain frontier and emerging market countries have declared moratoria on the payment of principal and interest on external debt. Certain frontier and emerging market countries have experienced difficulty in servicing their sovereign debt on a timely basis, which has led to defaults and the restructuring of certain indebtedness.

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 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. Investments in government-sponsored enterprises are debt obligations issued by agencies and instrumentalities of the U.S. Government. These obligations vary in the level of support they receive from the U.S. Government. They may be: (i) supported by the full faith and credit of the U.S. Treasury, such as those of the Government National Mortgage Association (‘‘Ginnie Mae’’); (ii) supported by the right of the issuer to borrow from the U.S. Treasury, such as those of the Federal Home Loan Bank and the Federal Farm Credit Banks; (iii) supported by the discretionary authority of the U.S. Government to purchase the agency obligations, such as those of Fannie Mae and Freddie Mac or (iv) supported only by the credit of the issuer, such as those of the Federal Farm Credit Bureau. The U.S. Government may choose not to provide financial support to U.S. Government-sponsored agencies or instrumentalities if it is not legally obligated to do so, in which case, if the issuer defaulted, to the extent the Funds hold securities of such issuers, it might not be able to recover its investment from the U.S. Government. U.S. government securities and securities of government-sponsored entities are also subject to credit risk, interest rate risk and market risk. The rising U.S. national debt may lead to adverse impacts on the value of U.S. government securities due to potentially higher costs for the U.S. government to obtain new financing.

U.S. Treasury Obligations Risk

The value of U.S. Treasury obligations may vary due to changes in interest rates. In addition, changes to the financial condition or credit rating of the U.S. government may cause the value of the Fund’s investments in obligations issued by the U.S. Treasury to decline. Certain political events in the U.S., such as a prolonged government shut down, may also cause investors to lose confidence in the U.S. government and may cause the value of U.S. Treasury obligations to decline.

Valuation Risk

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

65

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

Variable and Floating Rate Securities Risk

The coupons on certain fixed-income securities in which a Fund may invest are not fixed and may fluctuate based upon changes in market rates. The coupon on a floating rate security is generally based on an interest rate such as a money-market index, Secured Overnight Financing Rate (“SOFR”), LIBOR or a Treasury bill rate. Such securities are subject to interest rate risk and may fluctuate in value in response to interest rate changes if there is a delay between changes in market interest rates and the interest reset date for the obligation, or for other reasons. As short-term interest rates decline, the coupons on variable and floating rate securities typically decrease. Alternatively, during periods of rising interest rates, changes in the coupons of variable and floating rate securities may lag behind changes in market rates or may have limits on the maximum increases in the coupon rates. The value of variable and floating rate securities may decline if their coupons do not rise as much, or as quickly, as interest rates in general. Conversely, variable and floating rate securities will not generally increase in value if interest rates decline. Variable and floating rate securities are less effective at locking in a particular yield and are subject to credit risk. Certain types of floating rate instruments may also be subject to greater liquidity risk than other debt securities.

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 January 31, 2023 for the Developing World Income Fund and the tax years in the three year period ended January 31, 2023 for NIS Core Plus Bond Fund 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. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. However, Management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

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.

66

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

The tax character of distributions paid were as follows:

	Developing World Income Fund				NIS Core Plus Bond Fund
	Year Ended January 31, 2023		Year Ended January 31, 2022		Year Ended January 31, 2023		From September 10, 2020 to January 31, 2022
Distributions paid from:
Ordinary income*
R5 Class	$	2,892,344	$	4,110,907	$	-	$	-
Y Class		20,053,613		26,861,271		2,632		2,089
Investor Class		2,547,769		3,827,819		-		-
A Class		201,778		393,683		2,596		1,841
C Class		452,109		688,977		1,845		1,097
R6 Class		-		-		173,984		120,517
Return of capital
R5 Class		1,139,483		-		-		-
Y Class		7,254,095		-		-		-
Investor Class		847,299		-		-		-
A Class		59,833		-		-		-
C Class		168,709		-		-		-
R6 Class		-		-		-		-
Total distributions paid	$	35,617,032	$	35,882,657	$	181,057	$	125,544

*For tax purposes, short-term capital gains are considered ordinary income distributions.

As of January 31, 2023, the components of distributable earnings (deficits) on a tax basis were as follows:

Fund	Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Developing World Income	$	441,351,454	$	9,446,552	$	(75,015,925	)	$	(65,569,373	)
NIS Core Plus Bond		6,792,308		50,754		(438,801	)		(388,047	)

Fund	Net Unrealized Appreciation (Depreciation)			Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Accumulated Capital and Other (Losses)			Other Temporary Differences			Distributable Earnings
Developing World Income	$	(65,569,373	)	$	-	$	-	$	(57,126,255	)	$	-		$	(122,695,628	)
NIS Core Plus Bond		(388,047	)		15,182		-		(451,157	)		(12,837	)		(836,859	)

Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences. The temporary differences between financial reporting and tax-basis reporting of unrealized appreciation (depreciation) are attributable primarily to the tax deferral of losses from wash sales, the tax deferral of late year losses, unused capital losses, premium amortization accruals, the tax deferral of losses from straddles, dividends payable, interest income recognized for tax purposes on defaulted bonds, and the realization for tax purposes of unrealized gains (losses) on certain derivative instruments.

Due to inherent differences in the recognition of income, expenses, and realized gains (losses) under U.S. GAAP and federal income tax regulations, permanent differences between book and tax reporting have been identified and appropriately reclassified on the Statements of Assets and Liabilities.

There were no permanent differences in the funds as of January 31, 2023.

For federal income tax purposes, the Funds measure their capital loss carryforwards annually at January 31, their fiscal year end. Capital loss carryforwards retain their character as short-term and/or long-term and may be carried forward and applied against future capital gains with no expiration date.

67

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

As of January 31, 2023, the Funds had the following capital loss carryforwards:

Fund	Short-Term Capital Loss  Carryforwards		Long-Term Capital Loss  Carryforwards
Developing World Income	$	16,615,351	$	37,849,873
NIS Core Plus Bond		266,463		184,694

The Funds are permitted for tax purposes to defer into the next fiscal year qualified late year losses. Qualified late year capital losses are any capital losses incurred after October 31 through the Funds’ fiscal year end, January 31, 2023. Qualified late year ordinary losses are specified losses generally incurred after October 31 and ordinary losses incurred after December 31 through the end of the Funds’ fiscal year, January 31, 2023. For the year ended January 31, 2023, Developing World Income Fund deferred $2,661,031 in ordinary loss to February 1, 2023.

8.  Investment Transactions

The aggregate cost of purchases and proceeds from sales and maturities of investments, other than short-term obligations, for the year ended January 31, 2023 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
Developing World Income	$	155,896,804	$	-	$	185,549,828	$	-
NIS Core Plus Bond		2,815,195		5,228,355		2,718,018		3,892,458

A summary of the Funds’ transactions in the USG Select Fund for the year ended January 31, 2023 were as follows:

Fund	Type of Transaction	January 31, 2022 Shares/Fair Value		Purchases		Sales		January 31, 2023 Shares/Fair Value
Developing World Income	Direct	$	23,538,642	$	309,620,569	$	308,663,544	$	24,495,667

9.  Borrowing Arrangements

Effective November 11, 2022 (the “Effective Date”), the Funds, along with certain other funds managed by the Manager (“Participating Funds”), renewed 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 $100 million with interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) daily fluctuating rate per annum equal to 1.25% plus the sum of 0.10% or (b) the Federal Funds daily fluctuating rate per annum on amounts borrowed. Each of the Participating Funds paid a proportional amount of a quarterly commitment fee at a rate of 0.25% per annum on the unused portion of the Committed Line amount. The Committed Line expires November 9, 2023, unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

On the Effective Date, the Funds, along with certain other Participating Funds managed by the Manager, also renewed 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 $100 million with interest at a rate equal to the higher of (a) OBFR daily fluctuating rate per annum equal to 1.25% plus the sum of 0.10% or (b) the Federal Funds daily fluctuating rate per annum on amounts borrowed on each outstanding loan. Each of the Participating Funds paid a proportional amount of a closing fee of $35,000 on the Effective Date. The Uncommitted Line expires November 9, 2023, unless extended by the Bank or terminated by the Participating Funds in accordance with the agreement.

68

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

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

During the year ended January 31, 2023, the Funds did not utilize these facilities.

10.  Capital Share Transactions

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

	R5 Class
	Year Ended January 31,
	2023						2022
Developing World Income Fund	Shares			Amount			Shares			Amount
Shares sold		4,715,478		$	33,404,625			1,736,728		$	14,517,675
Reinvestment of dividends		386,382			2,681,033			301,639			2,517,293
Shares redeemed		(4,285,243	)		(29,595,131	)		(4,217,151	)		(35,098,537	)
Redemption fees		-			21,436			-			12,463
Net increase (decrease) in shares outstanding		816,617		$	6,511,963			(2,178,784	)	$	(18,051,106	)
	Y Class
	Year Ended January 31,
	2023						2022
Developing World Income Fund	Shares			Amount			Shares			Amount
Shares sold		19,169,843		$	135,775,314			21,396,209		$	179,081,861
Reinvestment of dividends		3,864,397			27,039,052			3,183,863			26,587,733
Shares redeemed		(27,553,889	)		(196,186,049	)		(13,080,705	)		(109,057,836	)
Redemption fees		-			143,583			-			96,927
Net increase (decrease) in shares outstanding		(4,519,649	)	$	(33,228,100	)		11,499,367		$	96,708,685
	Investor Class
	Year Ended January 31,
	2023						2022
Developing World Income Fund	Shares			Amount			Shares			Amount
Shares sold		2,450,057		$	17,680,039			2,327,011		$	19,468,870
Reinvestment of dividends		470,820			3,300,451			449,412			3,748,791
Shares redeemed		(4,108,014	)		(28,942,362	)		(2,345,620	)		(19,601,985	)
Redemption fees		-			19,286			-			13,145
Net increase (decrease) in shares outstanding		(1,187,137	)	$	(7,942,586	)		430,803		$	3,628,821
	A Class
	Year Ended January 31,
	2023						2022
Developing World Income Fund	Shares			Amount			Shares			Amount
Shares sold		90,753		$	625,456			252,687		$	2,123,367
Reinvestment of dividends		35,907			255,424			45,528			379,950
Shares redeemed		(472,640	)		(3,447,449	)		(138,758	)		(1,159,144	)
Redemption fees		-			1,458			-			1,456
Net increase (decrease) in shares outstanding		(345,980	)	$	(2,565,111	)		159,457		$	1,345,629
	C Class
	Year Ended January 31,
	2023						2022
Developing World Income Fund	Shares			Amount			Shares			Amount
Shares sold		110,667		$	765,816			118,977		$	993,688
Reinvestment of dividends		88,347			614,492			80,821			671,757
Shares redeemed		(258,407	)		(1,776,595	)		(278,210	)		(2,310,426	)
Redemption fees		-			3,774			–			2,514
Net (decrease) in shares outstanding		(59,393	)	$	(392,513	)		(78,412	)	$	(642,467	)

69

American Beacon Funds^SM

Notes to Financial Statements

January 31, 2023

	Y Class
	Year Ended January 31,
	2023						2022
NIS Core Plus Bond Fund	Shares			Amount			Shares			Amount
Shares sold		-		$	-			-		$	-
Reinvestment of dividends		-			-			-			-
Shares redeemed		-			-			-			-
Redemption fees		-			-			-			-
Net increase (decrease) in shares outstanding		-		$	-			-			-
	A Class
	Year Ended January 31,
	2023						2022
NIS Core Plus Bond Fund	Shares			Amount			Shares			Amount
Shares sold		2,942		$	23,948			-		$	-
Reinvestment of dividends		22			183			-			-
Shares redeemed		-			-			-			-
Redemption fees		-			-			-			-
Net increase in shares outstanding		2,964		$	24,131			-		$	-
	C Class
	Year Ended January 31,
	2023						2022
NIS Core Plus Bond Fund	Shares			Amount			Shares			Amount
Shares sold		4,551		$	38,182			-		$	-
Reinvestment of dividends		10			87			-			-
Shares redeemed		-			-			-			-
Redemption fees		-			-			-			-
Net increase in shares outstanding		4,561		$	38,269			-		$	-
	R6 Class
	Year Ended January 31,
	2023						2022
NIS Core Plus Bond Fund	Shares			Amount			Shares			Amount
Shares sold		153,707		$	1,322,094			51,485		$	507,279
Reinvestment of dividends		5,345			46,156			1,786			17,676
Shares redeemed		(27,839	)		(240,839	)		(37	)		(368	)
Redemption fees		-			-			-			-
Net increase in shares outstanding		131,213		$	1,127,411			53,234		$	524,587

11.  Subsequent Events

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

70

American Beacon Developing World Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	R5 ClassA
	Year Ended January 31,
	2023			2022			2021			2020			2019B
Net asset value, beginning of period	$	8.16		$	8.34		$	8.83		$	8.68		$	9.62
Income (loss) from investment operations:
Net investment income		0.61			0.68			0.57			0.76			0.80
Net gains (losses) on investments (both realized and unrealized)		(1.24	)		(0.20	)		(0.45	)		0.15			(0.96	)
Total income (loss) from investment operations		(0.63	)		0.48			0.12			0.91			(0.16	)
Less distributions:
Dividends from net investment income		(0.44	)		(0.66	)		(0.27	)		(0.74	)		(0.78	)
Distributions from net realized gains		-			-			-			-			-
Tax return of capital		(0.17	)		-			(0.34	)C		(0.02	)C		-
Total distributions		(0.61	)		(0.66	)		(0.61	)		(0.76	)		(0.78	)
Redemption fees added to beneficial interestsD		-			-			-			-			-
Net asset value, end of period	$	6.92		$	8.16		$	8.34		$	8.83		$	8.68
Total returnE		(7.50	)%		5.80	%		1.90	%		11.00	%		(1.58	)%
Ratios and supplemental data:
Net assets, end of period	$	46,282,796		$	47,897,191		$	67,157,974		$	71,344,608		$	62,523,243
Ratios to average net assets:
Expenses, before reimbursements and/or recoupments		1.12	%		1.06	%		1.09	%		1.11	%		1.20	%
Expenses, net of reimbursements and/or recoupments		1.12	%		1.06	%		1.09	%		1.16	%F		1.17	%F
Net investment income, before expense reimbursements and/or recoupments		8.81	%		7.79	%		7.09	%		8.92	%		8.87	%
Net investment income, net of reimbursements and/or recoupments		8.81	%		7.79	%		7.09	%		8.87	%		8.90	%
Portfolio turnover rate		42	%		39	%		54	%		39	%		21	%

^A  Prior to February 28, 2020, the R5 Class was known as Institutional Class.

^B  On October 1, 2018, abrdn Investments Limited (f/k/a. Aberdeen Asset Managers Limited) began managing a portion of the assets of the American Beacon Developing World Income Fund.

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

^D  Amount represents less than $0.01 per share.

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

^F  Includes non-operating expenses consisting of loan interest expenses. The expenses, net of reimbursements or recoupments ratio excluding non-operating expenses is 1.15% for the year ended 2020 and 2019, respectively.

See accompanying notes

71

American Beacon Developing World Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Y Class
	Year Ended January 31,
	2023			2022			2021			2020			2019A
Net asset value, beginning of period	$	8.16		$	8.35		$	8.84		$	8.68		$	9.63
Income (loss) from investment operations:
Net investment income		0.61			0.65			0.58			0.77			0.74
Net gains (losses) on investments (both realized and unrealized)		(1.25	)		(0.19	)		(0.46	)		0.14			(0.92	)
Total income (loss) from investment operations		(0.64	)		0.46			0.12			0.91			(0.18	)
Less distributions:
Dividends from net investment income		(0.43	)		(0.65	)		(0.27	)		(0.73	)		(0.77	)
Distributions from net realized gains		-			-			-			-			-
Tax return of capital		(0.17	)		-			(0.34	)B		(0.02	)B		-
Total distributions		(0.60	)		(0.65	)		(0.61	)		(0.75	)		(0.77	)
Redemption fees added to beneficial interestsC		-			-			-			-			-
Net asset value, end of period	$	6.92		$	8.16		$	8.35		$	8.84		$	8.68
Total returnD		(7.55	)%		5.61	%		1.85	%		11.08	%		(1.76	)%
Ratios and supplemental data:
Net assets, end of period	$	305,728,868		$	397,300,935		$	310,325,331		$	303,866,061		$	151,728,470
Ratios to average net assets:
Expenses, before reimbursements and/or recoupments		1.17	%		1.13	%		1.14	%		1.19	%		1.29	%
Expenses, net of reimbursements and/or recoupments		1.17	%		1.13	%		1.14	%		1.22	%E		1.27	%E
Net investment income, before expense reimbursements and/or recoupments		8.74	%		7.86	%		7.13	%		9.11	%		8.79	%
Net investment income, net of reimbursements and/or recoupments		8.74	%		7.86	%		7.13	%		9.08	%		8.80	%
Portfolio turnover rate		42	%		39	%		54	%		39	%		21	%

^A  On October 1, 2018, abrdn Investments Limited (f/k/a. Aberdeen Asset Managers Limited) began managing a portion of the assets of the American Beacon Developing World Income Fund.

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

^C  Amount represents less than $0.01 per share.

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

^E  Includes non-operating expenses consisting of loan interest expenses. The expenses, net of reimbursements or recoupments ratio excluding non-operating expenses is 1.21% and 1.25% for the year ended 2020 and 2019, respectively.

See accompanying notes

72

American Beacon Developing World Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Investor Class
	Year Ended January 31,
	2023			2022			2021			2020			2019A
Net asset value, beginning of period	$	8.15		$	8.33		$	8.82		$	8.67		$	9.61
Income (loss) from investment operations:
Net investment income		0.60			0.62			0.57			0.73			0.74
Net gains (losses) on investments (both realized and unrealized)		(1.25	)		(0.17	)		(0.47	)		0.15			(0.93	)
Total income (loss) from investment operations		(0.65	)		0.45			0.10			0.88			(0.19	)
Less distributions:
Dividends from net investment income		(0.43	)		(0.63	)		(0.27	)		(0.71	)		(0.75	)
Distributions from net realized gains		–			–			–			–			–
Tax return of capital		(0.16	)		–			(0.32	)B		(0.02	)B		–
Total distributions		(0.59	)		(0.63	)		(0.59	)		(0.73	)		(0.75	)
Redemption fees added to beneficial interestsC		-			–			–			–			–
Net asset value, end of period	$	6.91		$	8.15		$	8.33		$	8.82		$	8.67
Total returnD		(7.81	)%		5.47	%		1.56	%		10.71	%		(1.94	)%
Ratios and supplemental data:
Net assets, end of period	$	35,767,335		$	51,845,178		$	49,433,819		$	73,505,036		$	48,475,727
Ratios to average net assets:
Expenses, before reimbursements and/or recoupments		1.44	%		1.38	%		1.42	%		1.47	%		1.52	%
Expenses, net of reimbursements and/or recoupments		1.44	%		1.38	%		1.42	%		1.45	%E		1.52	%E
Net investment income, before expense reimbursements and/or recoupments		8.38	%		7.50	%		6.77	%		8.77	%		8.57	%
Net investment income, net of reimbursements and/or recoupments		8.38	%		7.50	%		6.77	%		8.79	%		8.57	%
Portfolio turnover rate		42	%		39	%		54	%		39	%		21	%

^A  On October 1, 2018, abrdn Investments Limited (f/k/a. Aberdeen Asset Managers Limited) began managing a portion of the assets of the American Beacon Developing World Income Fund.

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

^C  Amount represents less than $0.01 per share.

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

^E  Includes non-operating expenses consisting of loan interest expenses. The expenses, net of reimbursements or recoupments ratio excluding non-operating expenses is 1.44% and 1.50% for the year ended 2020 and 2019, respectively.

See accompanying notes

73

American Beacon Developing World Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	A Class
	Year Ended January 31,
	2023			2022			2021			2020			2019A
Net asset value, beginning of period	$	8.15		$	8.34		$	8.83		$	8.65		$	9.62
Income (loss) from investment operations:
Net investment income		0.66			0.61			0.54			0.72			0.75
Net gains (losses) on investments (both realized and unrealized)		(1.30	)		(0.17	)		(0.45	)		0.18			(0.98	)
Total income (loss) from investment operations		(0.64	)		0.44			0.09			0.90			(0.23	)
Less distributions:
Dividends from net investment income		(0.43	)		(0.63	)		(0.25	)		(0.70	)		(0.74	)
Distributions from net realized gains		–			–			–			–			–
Tax return of capital		(0.16	)		–			(0.33	)B		(0.02	)B		–
Total distributions		(0.59	)		(0.63	)		(0.58	)		(0.72	)		(0.74	)
Redemption fees added to beneficial interestsC		-			–			–			–			–
Net asset value, end of period	$	6.92		$	8.15		$	8.34		$	8.83		$	8.65
Total returnD		(7.67	)%		5.32	%		1.50	%		10.89	%		(2.31	)%
Ratios and supplemental data:
Net assets, end of period	$	2,574,241		$	5,855,674		$	4,657,416		$	4,275,426		$	3,200,206
Ratios to average net assets:
Expenses, before reimbursements and/or recoupments		1.41	%		1.36	%		1.55	%		1.49	%		1.53	%
Expenses, net of reimbursements and/or recoupments		1.41	%		1.36	%		1.55	%		1.41	%E		1.71	%E
Net investment income, before expense reimbursements and/or recoupments		8.28	%		7.62	%		6.65	%		8.53	%		8.49	%
Net investment income, net of reimbursements and/or recoupments		8.28	%		7.62	%		6.65	%		8.61	%		8.30	%
Portfolio turnover rate		42	%		39	%		54	%		39	%		21	%

^A  On October 1, 2018, abrdn Investments Limited (f/k/a. Aberdeen Asset Managers Limited) began managing a portion of the assets of the American Beacon Developing World Income Fund.

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

^C  Amount represents less than $0.01 per share.

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

^E  Includes non-operating expenses consisting of loan interest expenses. The expenses, net of reimbursements or recoupments ratio excluding non-operating expenses is 1.40% and 1.69% for the year ended 2020 and 2019, respectively.

See accompanying notes

74

American Beacon Developing World Income Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	C Class
	Year Ended January 31,
	2023			2022			2021			2020			2019A
Net asset value, beginning of period	$	8.11		$	8.30		$	8.79		$	8.64		$	9.58
Income (loss) from investment operations:
Net investment income		0.54			0.56			0.49			0.68			0.68
Net gains (losses) on investments (both realized and unrealized)		(1.24	)		(0.18	)		(0.45	)		0.14			(0.95	)
Total income (loss) from investment operations		(0.70	)		0.38			0.04			0.82			(0.27	)
Less distributions:
Dividends from net investment income		(0.38	)		(0.57	)		(0.24	)		(0.65	)		(0.67	)
Distributions from net realized gains		–			–			–			–			–
Tax return of capital		(0.15	)		–			(0.29	)B		(0.02	)B		–
Total distributions		(0.53	)		(0.57	)		(0.53	)		(0.67	)		(0.67	)
Redemption fees added to beneficial interestsC		-			–			–			–			–
Net asset value, end of period	$	6.88		$	8.11		$	8.30		$	8.79		$	8.64
Total returnD		(8.41	)%		4.58	%		0.83	%		9.94	%		(2.74	)%
Ratios and supplemental data:
Net assets, end of period	$	7,880,681		$	9,775,702		$	10,651,100		$	12,599,753		$	10,283,443
Ratios to average net assets:
Expenses, before reimbursements and/or recoupments		2.18	%		2.12	%		2.14	%		2.18	%		2.28	%
Expenses, net of reimbursements and/or recoupments		2.18	%		2.12	%		2.14	%		2.19	%E		2.33	%E
Net investment income, before expense reimbursements and/or recoupments		7.69	%		6.75	%		6.09	%		7.96	%		7.79	%
Net investment income, net of reimbursements and/or recoupments		7.69	%		6.75	%		6.09	%		7.95	%		7.75	%
Portfolio turnover rate		42	%		39	%		54	%		39	%		21	%

^A  On October 1, 2018, abrdn Investments Limited (f/k/a. Aberdeen Asset Managers Limited) began managing a portion of the assets of the American Beacon Developing World Income Fund.

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

^C  Amount represents less than $0.01 per share.

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

^E  Includes non-operating expenses consisting of loan interest expenses. The expenses, net of reimbursements or recoupments ratio excluding non-operating expenses is 2.17% and 2.30% for the year ended 2020 and 2019, respectively.

See accompanying notes

75

American Beacon NIS Core Plus Bond Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	Y Class
	Year Ended January 31,						September 10, 2020A to January 31,
	2023			2022			2021
Net asset value, beginning of period	$	9.69		$	10.04		$	10.00
Income (loss) from investment operations:
Net investment income		0.25			0.18			0.06
Net gains (losses) on investments (both realized and unrealized)		(1.06	)		(0.32	)		0.05
Total income (loss) from investment operations		(0.81	)		(0.14	)		0.11
Less distributions:
Dividends from net investment income		(0.26	)		(0.21	)		(0.06	)
Distributions from net realized gains		–			–			(0.01	)
Total distributions		(0.26	)		(0.21	)		(0.07	)
Net asset value, end of period	$	8.62		$	9.69		$	10.04
Total returnB		(8.31	)%		(1.43	)%		1.12	%C
Ratios and supplemental data:
Net assets, end of period	$	86,168		$	96,859		$	100,422
Ratios to average net assets:
Expenses, before reimbursements and/or recoupments		3.42	%		6.02	%E		15.81	%D E
Expenses, net of reimbursements and/or recoupments		0.53	%		0.53	%		0.53	%D
Net investment income (loss), before expense reimbursements and/or recoupments		(0.08	)%		(3.68	)%E		(13.85	)%D E
Net investment income, net of reimbursements and/or recoupments		2.81	%		1.81	%		1.43	%D
Portfolio turnover rate		114	%		127	%		103	%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.

^E  Includes non-recurring organization and offering costs.

See accompanying notes

76

American Beacon NIS Core Plus Bond Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	A Class
	Year Ended January 31,						September 10, 2020A to January 31,
	2023			2022			2021
Net asset value, beginning of period	$	9.69		$	10.04		$	10.00
Income (loss) from investment operations:
Net investment income		0.24			0.15			0.05
Net gains (losses) on investments (both realized and unrealized)		(1.07	)		(0.32	)		0.05
Total income (loss) from investment operations		(0.83	)		(0.17	)		0.10
Less distributions:
Dividends from net investment income		(0.24	)		(0.18	)		(0.05	)
Distributions from net realized gains		–			–			(0.01	)
Total distributions		(0.24	)		(0.18	)		(0.06	)
Net asset value, end of period	$	8.62		$	9.69		$	10.04
Total returnB		(8.54	)%		(1.68	)%		1.02	%C
Ratios and supplemental data:
Net assets, end of period	$	111,692		$	96,859		$	100,424
Ratios to average net assets:
Expenses, before reimbursements and/or recoupments		3.69	%		6.29	%E		16.22	%D E
Expenses, net of reimbursements and/or recoupments		0.78	%		0.78	%		0.78	%D
Net investment income (loss), before expense reimbursements and/or recoupments		(0.32	)%		(3.95	)%E		(14.26	)%D E
Net investment income, net of reimbursements and/or recoupments		2.59	%		1.56	%		1.18	%D
Portfolio turnover rate		114	%		127	%		103	%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.

^E  Includes non-recurring organization and offering costs.

See accompanying notes

77

American Beacon NIS Core Plus Bond Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	C Class
	Year Ended January 31,						September 10, 2020A to January 31,
	2023			2022			2021
Net asset value, beginning of period	$	9.69		$	10.04		$	10.00
Income (loss) from investment operations:
Net investment income		0.18			0.08			0.02
Net gains (losses) on investments (both realized and unrealized)		(1.07	)		(0.32	)		0.05
Total income (loss) from investment operations		(0.89	)		(0.24	)		0.07
Less distributions:
Dividends from net investment income		(0.18	)		(0.11	)		(0.02	)
Distributions from net realized gains		–			–			(0.01	)
Total distributions		(0.18	)		(0.11	)		(0.03	)
Net asset value, end of period	$	8.62		$	9.69		$	10.04
Total returnB		(9.22	)%		(2.41	)%		0.72	%C
Ratios and supplemental data:
Net assets, end of period	$	125,459		$	96,860		$	100,424
Ratios to average net assets:
Expenses, before reimbursements and/or recoupments		4.46	%		7.05	%E		16.93	%D E
Expenses, net of reimbursements and/or recoupments		1.53	%		1.53	%		1.53	%D
Net investment income (loss), before expense reimbursements and/or recoupments		(1.10	)%		(4.71	)%E		(14.97	)%D E
Net investment income, net of reimbursements and/or recoupments		1.83	%		0.81	%		0.43	%D
Portfolio turnover rate		114	%		127	%		103	%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.

^E  Includes non-recurring organization and offering costs.

See accompanying notes

78

American Beacon NIS Core Plus Bond Fund^SM

Financial Highlights

(For a share outstanding throughout the period)

	R6 Class
	Year Ended January 31,						September 10, 2020A to January 31,
	2023			2022			2021
Net asset value, beginning of period	$	9.69		$	10.04		$	10.00
Income from investment operations:
Net investment (loss) income		0.26			0.19			0.06
Net gains (losses) on investments (both realized and unrealized)		(1.06	)		(0.32	)		0.06
Total income (loss) from investment operations		(0.80	)		(0.13	)		0.12
Less distributions:
Dividends from net investment income		(0.27	)		(0.22	)		(0.07	)
Distributions from net realized gains		–			–			(0.01	)
Total distributions		(0.27	)		(0.22	)		(0.08	)
Net asset value, end of period	$	8.62		$	9.69		$	10.04
Total returnB		(8.22)	%		(1.33)	%		1.16	%C
Ratios and supplemental data:
Net assets, end of period	$	6,154,067		$	5,646,506		$	5,319,574
Ratios to average net assets:
Expenses, before reimbursements and/or recoupments		3.43	%		5.10	%E		10.98	%D E
Expenses, net of reimbursements and/or recoupments		0.43	%		0.43	%		0.43	%D
Net investment (loss), before expense reimbursements and/or recoupments		(0.07	)%		(2.76	)%E		(9.01	)%D E
Net investment income, net of reimbursements and/or recoupments		2.93	%		1.91	%		1.54	%D
Portfolio turnover rate		114	%		127	%		103	%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.

^E  Includes non-recurring organization and offering costs.

See accompanying notes

79

American Beacon Funds^SM

Federal Tax Information

January 31, 2023 (Unaudited)

Certain tax information regarding the Funds is required to be provided to shareholders based upon the Funds’ income and distributions for the taxable year ended January 31, 2023. The information and distributions reported herein may differ from information and distributions taxable to the shareholders for the calendar year ended December 31, 2022.

The Funds designated the following items with regard to distributions paid during the fiscal year ended January 31, 2023. All designations are based on financial information available as of this annual report and, accordingly, are subject to change. For each item, it is the intention of the Funds to designate the maximum amount permitted under the Internal Revenue Code of 1986, as amended, and the regulations there under.

Corporate Dividends-Received Deduction:

Developing World Income	N/A
NIS Core Plus Bond	N/A

Qualified Dividend Income:

Developing World Income	N/A
NIS Core Plus Bond	N/A

Long-Term Capital Gain Distributions:

Developing World Income	$	0
NIS Core Plus Bond		0

Short-Term Capital Gain Distributions:

Developing World Income	$	0
NIS Core Plus Bond		0

Return of Capital Distributions:

Developing World Income	$	9,469,419
NIS Core Plus Bond		0

Shareholders will receive notification in January 2024 of the applicable tax information necessary to prepare their 2023 income tax returns.

80

Trustees and Officers of the American Beacon Funds^SM (Unaudited)

The Trustees and officers of the American Beacon Funds (the “Trust”) are listed below, together with their principal occupations during the past five years. The address of each person listed below is 220 East Las Colinas Boulevard, Suite 1200, Irving, Texas 75039. Each Trustee oversees twenty-seven funds in the fund complex that includes the Trust, the American Beacon Select Funds, and the American Beacon Institutional Funds Trust. The Trust’s Statement of Additional Information contains additional information about the Trustees and is available without charge by calling 1-800-658-5811.

Name, Age	Position, Term of Office and Length of Time Served with the Trust	Principal Occupation(s) During Past 5 Years and Current Directorships
INTERESTED TRUSTEES	Term
	Lifetime of Trust until removal, resignation or retirement*
Eugene J. Duffy (68)**	Trustee since 2008	Managing Director, Global Investment Management Distribution, Mesirow Financial Administrative Corporation (2016-Present); Managing Director, Institutional Services, Intercontinental Real Estate Corporation (2014-2016); Trustee, American Beacon Select Funds (2008-Present); Trustee, American Beacon Institutional Funds Trust (2017-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018–2021); Trustee, American Beacon Apollo Total Return Fund (2018–2021).
NON-INTERESTED TRUSTEES	Term
	Lifetime of Trust until removal, resignation or retirement*
Gilbert G. Alvarado (53)	Trustee since 2015	Chief Financial Officer (2022-Present), The Conrad Prebys Foundation; President, SJVIIF, LLC, Impact Investment Fund (2018-2022); Director, Kura MD, Inc. (local telehealth organization) (2015-2017); Senior Vice President & CFO, Sierra Health Foundation (health conversion private foundation) (2006-2022); Senior Vice President & CFO, Sierra Health Foundation: Center for Health Program Management (California public benefit corporation) (2012-2022); Director, Sacramento Regional Technology Alliance (2011-2016); Director, Valley Healthcare Staffing (2017–2018); Trustee, American Beacon Select Funds (2015-Present); Trustee, American Beacon Institutional Funds Trust (2017-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018–2021); Trustee, American Beacon Apollo Total Return Fund (2018–2021).
Joseph B. Armes (60)	Trustee since 2015	Director, Switchback Energy Acquisition (2019-2021); Chairman & CEO, CSW Industrials f/k/a Capital Southwest Corporation (investment company) (2015-Present); Chairman of the Board of Capital Southwest Corporation, predecessor to CSW Industrials, Inc. (2014-2017) (investment company); President & CEO, JBA Investment Partners (family investment vehicle) (2010-Present); Director and Chair of Audit Committee, RSP Permian (oil and gas producer) (2013-2018); Trustee, American Beacon Select Funds (2015-Present); Trustee, American Beacon Institutional Funds Trust (2017-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018–2021); Trustee, American Beacon Apollo Total Return Fund (2018–2021).
Gerard J. Arpey (64)	Trustee since 2012	Partner, Emerald Creek Group (private equity firm) (2011-Present); Director, S.C. Johnson & Son, Inc. (privately held company) (2008-present); Director, The Home Depot, Inc. (2015-Present); Trustee, American Beacon Select Funds (2012-Present); Trustee, American Beacon Institutional Funds Trust (2017-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018–2021); Trustee, American Beacon Apollo Total Return Fund (2018–2021).

81

Trustees and Officers of the American Beacon Funds^SM (Unaudited)

Name, Age	Position, Term of Office and Length of Time Served with the Trust	Principal Occupation(s) During Past 5 Years and Current Directorships
NON-INTERESTED TRUSTEES (CONT.)	Term
	Lifetime of Trust until removal, resignation or retirement*
Brenda A. Cline (62)	Trustee since 2004 Chair since 2019 Vice Chair 2018	Chief Financial Officer, Treasurer and Secretary, Kimbell Art Foundation (1993-Present); Director, Tyler Technologies, Inc. (public sector software solutions company) (2014-Present); Director, Range Resources Corporation (oil and natural gas company) (2015-Present); Trustee, Cushing Closed-End and Open-End Funds (2017-2021); Chair, (2019-Present), Vice Chair (2018), Trustee (2004-Present), American Beacon Select Funds; Chair (2019-Present), Vice Chair (2018), Trustee (2017-Present), American Beacon Institutional Funds Trust; Chair (2019-2021), Vice Chair (2018), Trustee (2018-2021), American Beacon Sound Point Enhanced Income Fund (2018–2021); Chair (2019-2021), Vice Chair (2018), Trustee (2018-2021), American Beacon Apollo Total Return Fund (2018–2021).
Claudia A. Holz (65)	Trustee since 2018	Independent Director, Blue Owl Capital, Inc. (2021-Present); Partner, KPMG LLP (1990–2017); Trustee, American Beacon Select Funds (2018-Present); Trustee, American Beacon Institutional Funds Trust (2018-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018–2021); Trustee, American Beacon Apollo Total Return Fund (2018–2021).
Douglas A. Lindgren (61)	Trustee since 2018	Director, JLL Income Property Trust (2022-Present); CEO North America, Carne Global Financial Services (2016-2017); Consultant, Carne Financial Services (2017-2019); Managing Director, IPS Investment Management and Global Head, Content Management, UBS Wealth Management (2010-2016); Trustee, American Beacon Select Funds (2018-Present); Trustee, American Beacon Institutional Funds Trust (2018-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018–2021); Trustee, American Beacon Apollo Total Return Fund (2018–2021).
Barbara J. McKenna, CFA (59)	Trustee since 2012	President/Managing Principal, Longfellow Investment Management Company (2005-Present, President since 2009); Member, External Diversity Council of the Federal Reserve Bank of Boston (2021-Present); Member, Federal Reserve Bank of Boston CEO Roundtable (2021-Present); Board Advisor, United States Tennis Association (2021-Present); Trustee, American Beacon Select Funds (2012-Present); Trustee, American Beacon Institutional Funds Trust (2017-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018–2021); Trustee, American Beacon Apollo Total Return Fund (2018–2021).

82

Trustees and Officers of the American Beacon Funds^SM (Unaudited)

Name, Age	Position, Term of Office and Length of Time Served with the Trust	Principal Occupation(s) During Past 5 Years and Current Directorships
OFFICERS	Term
	One Year
Jeffrey K. Ringdahl (47)	President since 2022 Vice President (2010-2022)	Director (2015-Present), President (2018-Present), Chief Executive Officer (2022-Present), Chief Operating Officer (2010-2022), Senior Vice President (2013-2018), American Beacon Advisors, Inc.; Director (2015-Present), President (2018-Present), Senior Vice President (2015-2018), Resolute Investment Holdings, LLC; Director (2015-Present), President (2018-Present), Senior Vice President (2015-2018), Resolute Topco, Inc.; Director (2015-Present), President (2018-Present), Senior Vice President (2015-2018), Resolute Acquisition, Inc.; Director (2015-Present), President (2018-Present), Chief Executive Officer (2022-Present); Chief Operating Officer (2018-2022), Senior Vice President (2015-2018), Resolute Investment Managers, Inc.; Director (2017-Present), President & Chief Executive Officer (2022-Present), Executive Vice President (2017-2022), Resolute Investment Distributors, Inc.; Director (2017-Present), President (2018-Present), Chief Executive Officer (2022-Present), Chief Operating Officer (2018-2022), Executive Vice President (2017-2018), Resolute Investment Services, Inc.; President (2022-Present), Senior Vice President (2017-2022), Vice President (2012-2017), Manager (2015-Present), American Private Equity Management, L.L.C.; Trustee, American Beacon NextShares Trust (2015-2020); Director, Executive Vice President & Chief Operating Officer, Alpha Quant Advisors, LLC (2016-2020); Director, Shapiro Capital Management, LLC (2017-Present); Director and Executive Vice President, Continuous Capital, LLC (2018-2022); Director, RSW Investments Holdings LLC (2019-Present); Manager, SSI Investment Management, LLC (2019-Present); Director, National Investment Services of America, LLC (2019-Present); Director and Vice President American Beacon Cayman Transformational Innovation Company, Ltd. (2017-2018); Vice President, American Beacon Delaware Transformational Innovation Corporation (2017-2018); Director (2014-Present), President (2022-Present), Vice President (2014-2022), American Beacon Cayman Managed Futures Strategy Fund, Ltd.; Director (2018-Present), President (2022-Present), (Vice President (2018-2022), American Beacon Cayman TargetRisk Company, Ltd.; President (2022-Present); Vice President (2010-2022), American Beacon Select Funds; President (2022-Present), Vice President (2017-2022), American Beacon Institutional Funds Trust; Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
Rosemary K. Behan (63)	VP, Secretary and Chief Legal Officer since 2006	Senior Vice President (2021-Present), Vice President (2006-2021), Secretary and General Counsel (2006-Present), American Beacon Advisors, Inc.; Secretary, Resolute Investment Holdings, LLC (2015-Present); Secretary, Resolute Topco, Inc. (2015-Present); Secretary, Resolute Acquisition, Inc. (2015–Present); Senior Vice President (2021-Present), Vice President (2015-2021), Secretary and General Counsel (2015-Present), Resolute Investment Managers, Inc.; Secretary, Resolute Investment Distributors, Inc. (2017-Present); Senior Vice President (2021-Present), Vice President (2017-2021), Secretary and General Counsel (2017-Present), Resolute Investment Services, Inc.; Secretary, American Private Equity Management, L.L.C. (2008-Present); Secretary and General Counsel, Alpha Quant Advisors, LLC (2016-2020); Vice President and Secretary, Continuous Capital, LLC (2018-2022); Secretary, Green Harvest Asset Management (2019-2021); Secretary, American Beacon Delaware Transformational Innovation Corporation (2017-2018); Secretary, American Beacon Cayman Transformational Innovation Company, Ltd. (2017-2018); Secretary, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2014-Present); Secretary, American Beacon Cayman TargetRisk Company, Ltd. (2018-Present); Chief Legal Officer, Vice President and Secretary, American Beacon Select Funds (2006-Present); Chief Legal Officer, Vice President and Secretary, American Beacon Institutional Funds Trust (2017-Present); Chief Legal Officer, Vice President and Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Chief Legal Officer, Vice President and Secretary, American Beacon Apollo Total Return Fund (2018-2021).

83

Trustees and Officers of the American Beacon Funds^SM (Unaudited)

Name, Age	Position, Term of Office and Length of Time Served with the Trust	Principal Occupation(s) During Past 5 Years and Current Directorships
OFFICERS (CONT.)	Term
	One Year
Gregory J. Stumm (41)	VP since 2022	Senior Vice President, American Beacon Advisors, Inc. (2022-Present); Senior Vice President, Resolute Investment Managers, Inc. (2022-Present); Director and Senior Vice President, Resolute Investment Distributors, Inc. (2022-Present); Senior Vice President, Resolute Investment Services, Inc. (2022-Present); Vice President, American Beacon Select Funds (2022-Present); Vice President, American Beacon Institutional Funds Trust (2022-Present).
Paul B. Cavazos (53)	VP since 2016	Chief Investment Officer and Senior Vice President, American Beacon Advisors, Inc. (2016-Present); American Private Equity Management, L.L.C. (2017–Present); Vice President, American Beacon Select Funds (2016-Present); Vice President, American Beacon Institutional Funds Trust (2017-Present); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
Erica Duncan (52)	VP since 2011	Vice President, American Beacon Advisors, Inc. (2011-Present); Vice President, Resolute Investment Managers (2018-Present); Vice President, Resolute Investment Services, Inc. (2018-Present); Vice President, American Beacon Select Funds (2011-Present); Vice President, American Beacon Institutional Funds Trust (2017-Present); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
Melinda G. Heika (61)	VP since 2021	Senior Vice President (2021-Present), Treasurer and CFO (2010-Present), American Beacon Advisors, Inc.; Treasurer, Resolute Topco, Inc. (2015-Present); Treasurer, Resolute Investment Holdings, LLC. (2015-Present); Treasurer, Resolute Acquisition, Inc. (2015-Present); Senior Vice President (2021-Present), Treasurer and CFO (2017-Present), Resolute Investment Managers, Inc.; Treasurer, Resolute Investment Distributors, Inc. (2017); Senior Vice President (2021-Present); Treasurer and CFO (2017-Present), Resolute Investment Services, Inc.; Treasurer, American Private Equity Management, L.L.C. (2012-Present); Treasurer and CFO, Alpha Quant Advisors, LLC (2016-2020); Treasurer and CFO, Continuous Capital, LLC (2018-2022); Treasurer, American Beacon Cayman Transformational Innovation, Ltd. (2017-2018); Treasurer, American Beacon Delaware Transformational Innovation Corporation (2017-2018); Director (2014-Present), Vice President (2022-Present) and Treasurer (2014-2022), American Beacon Cayman Managed Futures Strategy Fund, Ltd.; Director and Vice President (2022-Present), and Treasurer (2018-2022), American Beacon Cayman TargetRisk Company, Ltd. (2018-Present); Principal Accounting Officer and Treasurer (2010-2021); American Beacon Funds; Vice President (2021-Present), Principal Accounting Officer (2017-2021) and Treasurer (2010-2021), American Beacon Select Funds; Vice President (2021–Present), Principal Accounting Officer and Treasurer (2017-2021), American Beacon Institutional Funds Trust; Vice President (2021), Principal Accounting Officer and Treasurer (2018-2021), American Beacon Sound Point Enhanced Income Fund; Vice President (2021), Principal Accounting Officer and Treasurer, American Beacon Apollo Total Return Fund (2018-2021).
Terri L. McKinney (59)	VP since 2010	Senior Vice President (2021-Present), Vice President (2009-2021), American Beacon Advisors, Inc.; Senior Vice President (2021–Present); Vice President (2017-2021), Resolute Investment Managers, Inc.; Senior Vice President (2021-Present), Vice President (2018-2021), Resolute Investment Services, Inc; Vice President, Alpha Quant Advisors, LLC (2016-2020); Vice President, Continuous Capital, LLC (2018-2022); Vice President, American Beacon Select Funds (2010-Present); Vice President, American Beacon Institutional Funds Trust (2017-Present); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).

84

Trustees and Officers of the American Beacon Funds^SM (Unaudited)

Name, Age	Position, Term of Office and Length of Time Served with the Trust	Principal Occupation(s) During Past 5 Years and Current Directorships
OFFICERS (CONT.)	Term
	One Year
Samuel J. Silver (59)	VP since 2011	Vice President (2011-Present), Chief Fixed Income Officer (2016-Present), American Beacon Advisors, Inc.; Vice President, American Beacon Select Funds (2011-Present); Vice President, American Beacon Institutional Funds Trust (2017-Present); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021).
Christina E. Sears (51)	Chief Compliance Officer since 2004	Chief Compliance Officer (2004-Present), Vice President (2019-Present); American Beacon Advisors, Inc.; Vice President, Resolute Investment Managers, Inc. (2017-Present); Vice President, Resolute Investment Distributors (2017-Present); Vice President, Resolute Investment Services, Inc. (2019-Present); Chief Compliance Officer, American Private Equity Management, L.L.C. (2012-Present); Chief Compliance Officer, Green Harvest Asset Management, LLC (2019-2021); Chief Compliance Officer, RSW Investments Holdings, LLC (2019-Present); Chief Compliance Officer (2016-2019) and Vice President (2016-2020), Alpha Quant Advisors, LLC ; Chief Compliance Officer (2018-2019), Vice President (2018-2022), Continuous Capital, LLC; Assistant Secretary, American Beacon Funds (1999-Present); Chief Compliance Officer (2004-Present) and Assistant Secretary (1999-Present), American Beacon Select Funds; Chief Compliance Officer and Assistant Secretary, American Beacon Institutional Funds Trust (2017-Present); Chief Compliance Officer and Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Chief Compliance Officer and Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021).
Sonia L. Bates (66)	Principal Accounting Officer and Treasurer since 2021	Assistant Treasurer, American Beacon Advisors, Inc. (2011-2018); Vice President, Fund and Tax Reporting (2023-Present), Director, Fund and Tax Reporting (2011-2023), Resolute Investment Services, Inc.; Assistant Treasurer, American Private Equity Management, L.L.C. (2012-Present); Assistant Treasurer, American Beacon Cayman Transformational Innovation Company, Ltd. (2017-2018); Treasurer, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2022-Present); Treasurer (2022-Present), Assistant Treasurer (2018-2022), American Beacon Cayman TargetRisk Company, Ltd.; Assistant Treasurer, American Beacon Funds (2011-2021); Principal Accounting Officer and Treasurer (2021-Present), Assistant Treasurer (2011-2021), American Beacon Select Funds; Principal Accounting Officer and Treasurer (2021-Present), Assistant Treasurer (2017-2021), American Beacon Institutional Funds Trust; Principal Accounting Officer and Treasurer (2021), Assistant Treasurer (2018-2021), American Beacon Sound Point Enhanced Income Fund; Principal Accounting Officer and Treasurer (2021), Assistant Treasurer (2018-2021), American Beacon Apollo Total Return Fund.
Shelley L. Dyson (53)	Assistant Treasurer since 2021	Fund Tax Manager (2020-Present), Manager, Tax (2014-2020), Resolute Investment Services, Inc.; Assistant Treasurer American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2022-Present); Assistant Treasurer, American Beacon Cayman TargetRisk Company, Ltd. (2022-Present); Assistant Treasurer, American Beacon Select Funds (2021-Present); Assistant Treasurer, American Beacon Institutional Funds Trust (2021-Present); Assistant Treasurer, American Beacon Sound Point Enhanced Income Fund (2021); Assistant Treasurer, American Beacon Apollo Total Return Fund (2021).
Shelley D. Abrahams (48)	Assistant Secretary since 2008	Corporate Governance Manager (2023-Present), Senior Corporate Governance & Regulatory Specialist (2020-2023), Corporate Governance & Regulatory Specialist (2017-2020), Resolute Investment Services, Inc.; Assistant Secretary, American Beacon Cayman Managed Futures Strategy Fund, Ltd. (2022-Present); Assistant Secretary, American Beacon Cayman TargetRisk Company, Ltd. (2022-Present); Assistant Secretary, American Beacon Select Funds (2008-Present); Assistant Secretary, American Beacon Institutional Funds Trust (2017-Present); Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021).

85

Trustees and Officers of the American Beacon Funds^SM (Unaudited)

Name, Age	Position, Term of Office and Length of Time Served with the Trust	Principal Occupation(s) During Past 5 Years and Current Directorships
OFFICERS (CONT.)	Term
	One Year
Rebecca L. Harris (56)	Vice President since 2022	Senior Vice President (2021-Present), Vice President (2011-2021), American Beacon Advisors, Inc.; Senior Vice President (2021-Present), Vice President (2017-2021), Resolute Investment Managers, Inc.; Senior Vice President (2021-Present), Vice President (2015-Present), Resolute Investment Services; Vice President, Alpha Quant Advisors, LLC (2016-2020); Vice President (2018-Present), Director (2022) Continuous Capital, LLC; Director, National Investment Services of American, LLC (2022-Present); Director, RSW Investments Holdings LLC (2022-Present); Director Shapiro Capital Management LLC (2022-Present); Director, SSI Investment Management LLC (2022-Present); Assistant Secretary, American Beacon Funds (2010-2022); Vice President (2022-Present), Assistant Secretary (2010-2022), American Beacon Select Funds; Vice President (2022-Present), Assistant Secretary (2017-2022), American Beacon Institutional Funds Trust; Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021).
Teresa A. Oxford (64)	Assistant Secretary since 2015	Assistant Secretary and Associate General Counsel, American Beacon Advisors, Inc. (2015-Present); Assistant Secretary, Resolute Investment Distributors (2018-2021); Assistant Secretary and Associate General Counsel, Resolute Investment Managers, Inc. (2017-Present); Assistant Secretary and Associate General Counsel, Resolute Investment Services (2018-Present); Assistant Secretary, Alpha Quant Advisors, LLC (2016-2020); Assistant Secretary, Continuous Capital, LLC (2020-2022); Assistant Secretary, American Beacon Select Funds (2015-Present); Assistant Secretary, American Beacon Institutional Funds Trust (2017-Present); Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021).
Michael D. Jiang (38)	Assistant Secretary since 2021	Assistant Secretary (2022-Present), Associate General Counsel (2021-Present), American Beacon Advisors, Inc.; Assistant Secretary (2021-Present), Resolute Investment Distributors, Inc.; Assistant Secretary (2022-Present), Associate General Counsel (2021-Present), Resolute Investment Managers, Inc.; Assistant Secretary (2022–Present) and Associate General Counsel, (2021-Present), Resolute Investment Services, Inc.; Vice President (2018-2021), Second Vice President (2015-2018), The Northern Trust Company; Assistant Secretary, American Beacon Select Funds (2021-Present); Assistant Secretary, American Beacon Institutional Funds Trust (2021-Present); Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2021).

* As of 11/12/2014, the Board adopted a retirement plan that requires Trustees to retire no later than the last day of the calendar year in which they reach the age of 75.

** Mr. Duffy is being deemed to be an “interested person” of the Trust, as defined by the Investment Company Act of 1940, as amended, by virtue of his position with Mesirow Financial, Inc., a broker-dealer.

86

American Beacon Funds^SM

Privacy Policy

January 31, 2023 (Unaudited)

The American Beacon Funds recognize and respect the privacy of our shareholders. We are providing this notice to you so you will understand how shareholder information may be collected and used.

We may collect nonpublic personal information about you from one or more of the following sources:

• information we receive from you on applications or other forms;

• information about your transactions with us or our service providers; and

• information we receive from third parties.

We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law.

We restrict access to your nonpublic personal information to those employees or service providers who need to know that information to provide products or services to you. To ensure the confidentiality of your nonpublic personal information, we maintain safeguards that comply with federal standards.

87

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88

Delivery of Documents

Shareholder reports are available online at www.americanbeaconfunds.com/reports. Please be advised that reports are no longer sent by mail. Instead, the reports are made available online, and you will be notified by mail each time a report is posted online. You will be provided with a website link to access the report. You may elect to receive all future reports in paper free of charge. You can request to continue receiving paper copies by calling 1-866-345-5954, or you may directly inform your financial intermediary. Detailed instructions are also included in your report notifications.

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-PORT as of the end of each fiscal quarter. The Fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov. The Forms N-PORT may also be reviewed and copied at the SEC’s Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-2736. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling (800)-SEC-0330. A complete schedule of each Fund’s portfolio holdings is also available at www.americanbeaconfunds.com approximately twenty days after the end of each month.	A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available in the Fund’s Statement of Additional Information, is available free of charge on the Fund’s website www.americanbeaconfunds.com and by calling 1-800-967-9009 or by accessing the SEC’s website at www.sec.gov. The Fund’s proxy voting record for the most recent year ended June 30 is filed annually with the SEC on Form N-PX. The Fund’s Forms N-PX are available on the SEC’s website at www.sec.gov. The Fund’s proxy voting record may also be obtained by calling 1-800-967-9009.

Fund Service Providers:

CUSTODIAN State Street Bank and Trust Company Boston, Massachusetts TRANSFER AGENT SS&C GIDS Quincy, Massachusetts INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP Boston, Massachusetts DISTRIBUTOR Resolute Investment Distributors, Inc. Irving, Texas

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

American Beacon Funds, American Beacon Developing World Income Fund and American Beacon NIS Core Plus Bond Fund are service marks of American Beacon Advisors, Inc.

AR 01/23

ITEM 2. CODE OF ETHICS.

The registrant adopted a code of ethics (the “Code”) that applies to the registrant’s principal executive officer and principal financial officer. The registrant amended its code July 6, 2021 to remove two terminated investment companies and update the Principal Financial Officer. The registrant has not granted any waivers from the provisions of the Code during the period covered by the shareholder reports presented in Item 1. The Code is filed herewith as Exhibit 99.CODE ETH.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant’s Board of Trustees of the Trust has determined that Claudia Holz, a member of the Trust’s Audit and Compliance Committee, is the “audit committee financial expert” as defined in Form N-CSR. Ms. Claudia Holz is considered “independent” as defined in Item 3 of Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The registrant has engaged its principal accountant to perform audit services, audit-related services, tax services and other services during the past two fiscal years. “Audit services” refer to performing an audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. “Audit-related services” refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit. “Tax services” refer to professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. “Other services” refer to all other fees category would consist of service related to internal control reviews, strategy, and other consulting, financial information systems design and implementation, consulting on other information systems, and other tax services unrelated to the registrant. The following table details the aggregate fees billed for each of the last two fiscal years for audit fees, audit-related fees, tax fees, and all other fees by the principal accountant.

(a)

Audit Fees	Fiscal Year Ended
$180,036		1/31/2022
$139,800		1/31/2023

(b)

Audit Related Fees	Fiscal Year Ended
$0		1/31/2022
$0		1/31/2023

(c)

Tax Fees (1)	Fiscal Year Ended
$46,193		1/31/2022
$18,425		1/31/2023

(d)

All Other Fees	Fiscal Year Ended
$0		1/31/2022
$0		1/31/2023

⁽¹⁾  “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, tax planning, filing assistance for EU reclaims and PFIC tax services. These fees include international, federal, state, and excise tax reviews.

(e)(1) Pursuant to its charter, the Trust’s Audit and Compliance Committee shall have the following duties and powers pertaining to pre-approval of audit and non-audit services provided by the registrant’s principal accountant:

- to approve, prior to appointment, the engagement of auditors to annually audit and provide their opinion on the Trusts’ financial statements, and, in connection therewith, reviewing and evaluating matters potentially affecting the independence and capabilities of the auditors;

- to approve, prior to appointment, the engagement of the auditors to provide non-audit services to the Trusts, an investment adviser to any series of the Trusts or any entity controlling, controlled by, or under common control with an investment adviser (“adviser affiliate”) that provides ongoing services to the Trusts, if the engagement relates directly to the operations and financial reporting of the Trusts;

- to consider whether the non-audit services provided by a Trust’s auditor to an investment adviser or any adviser affiliate that provides ongoing services to a series of the Trusts, which services were not pre-approved by the Committee, are compatible with maintaining the auditor’s independence;

- to review the arrangements for and scope of the annual audit and any special audits; and

- to review and approving the fees proposed to be charged to the Trusts by the auditors for each audit and non-audit service.

The Audit and Compliance Committee may delegate any portion of its authority, including the authority to grant pre-approvals of audit and permitted non-audit services, to a subcommittee of one or more members. Any decisions of the subcommittee to grant pre-approvals shall be presented to the full audit committee at its next regularly scheduled meeting.

(e)(2) None of the fees disclosed in paragraphs (b) through (d) above were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) Aggregate Non-Audit Fees for Services Rendered to the:

Registrant	Adviser		Adviser’s Affiliates Providing Ongoing Services to Registrant	Fiscal Year Ended
$46,193	$	0	N/A		1/31/2022
$18,425	$	0	N/A		1/31/2023

(h) Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

(a) The schedules of investments for each series of the Trust are included in the shareholder reports presented in Item 1.

(b) Not applicable.

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 registrant has made no material changes to the procedures by which shareholders may recommend nominees to the Trust’s Board of Trustees.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer have reviewed the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) as of a date within 90 days of the filing of this report as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based upon their review, such officers have concluded that the registrant’s disclosure controls and procedures are effective in ensuring that information required to be disclosed in the report is appropriately recorded, processed, summarized and reported and made know to them by others within the registrant and by the registrant’s service provider.

(b) The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during 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.

ITEM 12 DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGMENT INVESTMENT COMPANIES.

Not Applicable.

ITEM 13. EXHIBITS.

(a)(1) Filed herewith as EX-99.CODE ETH.

(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is attached hereto as EX-99.CERT.

(a)(3) Not applicable.

(b) The certifications of each principal executive officer and principal financial officer pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, (17 CFR 270.30a-2(b), Rule 13a-14(b) or Rule 15d-14(b)) 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/ Jeffrey K. Ringdahl

Jeffrey K. Ringdahl

President

American Beacon Funds

Date: April 5, 2023

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/ Jeffrey K. Ringdahl

Jeffrey K. Ringdahl

President

American Beacon Funds

Date: April 5, 2023

By /s/ Sonia L. Bates

Sonia L. Bates

Chief Accounting Officer and Treasurer

American Beacon Funds

Date: April 5, 2023

EX-99.CODE ETH

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: July 6, 2021

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 $100;

• 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;

2

• 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

• 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

3

• any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

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

Principal Executive Officer	President	Name Jeffrey K. Ringdahl
Principal Financial Officer	Treasurer/Principal Accounting Officer	Sonia L. Bates

EX-99.CERT

EXHIBIT 99.CERT

EXHIBIT (A)(2)

CERTIFICATIONS PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Sonia L. Bates, 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 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: April 5, 2023	/s/ Sonia L. Bates
	Sonia L. Bates
	Chief Accounting Officer and Treasurer
	American Beacon Funds

I, Jeffrey K. Ringdahl, 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 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: April 5, 2023	/s/ Jeffrey K. Ringdahl
	Jeffrey K. Ringdahl
	President
	American Beacon Funds

EX-99.906 CERT

EXHIBIT 99.906.CERT

CERTIFICATION PERSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

Jeffrey Ringdahl and Sonia L. Bates, respectively, the President and Chief Accounting Officer 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 periodic report on Form N-CSR for the period covered by the Report (the “Form N-CSR”) fully complies with the requirements of Sections 13(a) or 15(d), as applicable, 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.

Date: April 5, 2023

/s/ Jeffrey K. Ringdahl

Jeffrey K. Ringdahl

President

American Beacon Funds

/s/ Sonia L. Bates

Sonia L. Bates

Chief Accounting Officer and Treasurer

American Beacon Funds

This certification is being furnished pursuant to the requirements of Form N-CSR and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

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 U.S. Securities and Exchange Commission or its staff upon request.