0001752724-19-157054.txt : 20191104
0001752724-19-157054.hdr.sgml : 20191104
20191104091451
ACCESSION NUMBER: 0001752724-19-157054
CONFORMED SUBMISSION TYPE: N-CEN/A
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20180831
FILED AS OF DATE: 20191104
DATE AS OF CHANGE: 20191104
EFFECTIVENESS DATE: 20191104
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: AMERICAN BEACON FUNDS
CENTRAL INDEX KEY: 0000809593
IRS NUMBER: 000000000
STATE OF INCORPORATION: MA
FISCAL YEAR END: 1031
FILING VALUES:
FORM TYPE: N-CEN/A
SEC ACT: 1940 Act
SEC FILE NUMBER: 811-04984
FILM NUMBER: 191188400
BUSINESS ADDRESS:
STREET 1: 220 EAST LAS COLINAS BOULEVARD
STREET 2: SUITE 1200
CITY: IRVING
STATE: TX
ZIP: 75039
BUSINESS PHONE: 8173916100
MAIL ADDRESS:
STREET 1: 220 EAST LAS COLINAS BOULEVARD
STREET 2: SUITE 1200
CITY: IRVING
STATE: TX
ZIP: 75039
FORMER COMPANY:
FORMER CONFORMED NAME: AMERICAN AADVANTAGE FUNDS
DATE OF NAME CHANGE: 19920703
FORMER COMPANY:
FORMER CONFORMED NAME: AMERICAN EAGLE FUNDS
DATE OF NAME CHANGE: 19890813
0000809593
S000029125
American Beacon Zebra Small Cap Equity Fund
C000089563
A Class
AZSAX
C000089564
Institutional Class
AZSIX
C000089565
Y Class
AZSYX
C000089566
Investor Class
AZSPX
C000092354
C Class
AZSCX
0000809593
S000031209
American Beacon SiM High Yield Opportunities Fund
C000096903
A Class
SHOAX
C000096904
C Class
SHOCX
C000096905
Institutional Class
SHOIX
C000096906
Y Class
SHOYX
C000096907
Investor Class
SHYPX
0000809593
S000037191
American Beacon The London Company Income Equity Fund
C000114555
A Class
ABCAX
C000114556
C Class
ABECX
C000114557
Y Class
ABCYX
C000114558
Institutional Class
ABCIX
C000114559
Investor Class
ABCVX
0000809593
S000052009
American Beacon Sound Point Floating Rate Income Fund
C000163584
A Class
SOUAX
C000163585
C Class
SOUCX
C000163586
Institutional Class
SPFLX
C000163587
Investor Class
SPFPX
C000163588
Y Class
SPFYX
C000163964
SP Class
SPFRX
N-CEN/A
1
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AMERICAN BEACON FUNDS
811-04984
0000809593
549300EXCES9V5RWB620
220 EAST LAS COLINAS BOULEVARD
SUITE 1200
IRVING
75039
US-TX
US
(817) 391-6100
American Beacon Advisors, Inc.
220 E. Las Colinas Boulevard
Suite 1200
Irving
75039-5500
817-391-6100
Records relating to its function as advisor
State Street Bank and Trust Company
1 Lincoln Street
Boston
02111
617-786-3000
Custody and Accounting Records.
DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy
02169
800-407-0256
Records related to its functions as transfer agents
Sound Point Capital Management, LP
375 Park Avenue
33rd Floor
New York
10152
212-895-2280
Records related to its function as sub-advisor
Payden & Rygel
333 South Grand Avenue
Suite 3200
Los Angeles
90071
213-625-1900
Records related to its function as sub-advisor
Strategic Income Management, LLC
200 Westlake Avenue North
Suite 713
Seattle
98109
206-971-3773
Records related to its function as sub-advisor
Pacific Investment Management Company LLC
650 Newport Center Drive
Newport
92660
888-877-4626
Records related to its function as sub-advisor
Brandywine Global Investment Management, LLC
2929 Arch Street
8th Floor
Philadelphia
19104
215-609-3788
Records related to its function as sub-advisor
The London Company of Virginia, LLC
1800 Bayberry Court
Suite 301
Richmond
23226
804-775-0317
Records related to its function as sub-advisor
Zebra Capital Management, LLC
2187 Atlantic Street
4th Floor
Stamford
06902
203-701-5900
Records related to its function as sub-advisor
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N
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Claudia A. Holz
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N
Richard A. Massman
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Douglas A. Lindgren
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Gilbert G. Alvarado
000000000
N
Brenda A. Cline
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N
Alan D. Feld
000000000
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Gerard J. Arpey
000000000
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Eugene J. Duffy
000000000
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Joseph B. Armes
000000000
N
Barbara J. McKenna
000000000
N
R. Gerald Turner
000000000
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Christina E. Sears
002708589
220 East Las Colinas Boulevard
Suite 1200
Irving
75039
XXXXXX
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N
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N
N
N
Resolute Investment Distributors, Inc.
8-69912
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Foreside Fund Services, LLC
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N/A
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Y
Ernst & Young LLP
42
254900H1VLSOPE6LJK37
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N
N
2018-03-28
Preferred USD equities moved to a primary vendor of ICE along with methodology changed to evaluated bid
Equity-preferred
Preferred Stocks
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N
American Beacon Sound Point Floating Rate Income Fund
S000052009
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Y
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0
0
N/A
N
N
N
N
N/A
N/A
N/A
Rule 12d1-1 (17 CFR 270.12d1-1)
Rule 32a-4 (17 CFR 270.32a-4)
Y
N
Y
Y
American Beacon Advisors, Inc.
801-29198
000105552
549300AJADEWUE8OXQ32
N
Sound Point Capital Management, LP
801-71765
000151956
549300FZ417XL0BBLZ51
N
N
DST Asset Manager Solutions, Inc.
84-00896
N/A
N
N
N
Ice Data Services, Inc.
5493000NQ9LYLDBCTL34
N
PricingDirect Inc.
549300WIC0TOJ7N7GD54
N
Thomson Reuters Corporation
549300561UZND4C7B569
CA
N
Bloomberg L.P.
549300B56MD0ZC402L06
N
IHS Markit Ltd.
549300HLPTRASHS0E726
GB
N
N
State Street Bank and Trust Company
571474TGEMMWANRLN572
N
N
Bank - section 17(f)(1) (15 U.S.C. 80a-17(f)(1))
N
DST Asset Manager Solutions, Inc.
84-00896
SEC File Number
N
N
N
American Beacon Advisors, Inc.
549300AJADEWUE8OXQ32
Y
N
N
Resolute Investment Distributors, Inc.
8-69912
000287788
N/A
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0.00000000
Deutsche Bank Aktiengesellschaft
8-17822
000002525
7LTWFZYICNSX8D621K86
DE
194313241.23000000
UBS AG
N/A
N/A
BFM8T61CT2L1QCEMIK50
CH
161652147.86000000
Barclays Capital Inc.
8-41342
000019714
AC28XWWI3WIBK2824319
155559089.72000000
The Goldman Sachs Group, Inc.
N/A
N/A
784F5XWPLTWKTBV3E584
263348337.83000000
Morgan Stanley & Co. LLC
8-15869
000008209
9R7GPTSO7KV3UQJZQ078
197646560.07000000
J.P. Morgan Securities LLC
8-35008
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RBC Capital Markets, LLC
8-45411
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549300LCO2FLSSVFFR64
157326130.24000000
Jefferies LLC
8-15074
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58PU97L1C0WSRCWADL48
134195291.48000000
Bank of America Corporation
8-33359
000016139
9DJT3UXIJIZJI4WXO774
374918354.11000000
Credit Suisse Group AG
8-15869
000008209
549300506SI9CRFV9Z86
CH
308269872.48000000
2544930416.91000100
N
1498922731.91000000
N
American Beacon The London Company Income Equity Fund
S000037191
549300POLGA2XPGZPT36
Y
5
0
0
N/A
N
N
Y
N
N
State Street Bank and Trust Company
571474TGEMMWANRLN572
N
N
Revenue sharing split
Cash collateral reinvestment fee
N/A
2584.00
Rule 12d1-1 (17 CFR 270.12d1-1)
Rule 32a-4 (17 CFR 270.32a-4)
N
N
N
N
American Beacon Advisors, Inc.
801-29198
000105552
549300AJADEWUE8OXQ32
N
The London Company of Virginia, LLC
801-46604
000106654
5493002IGC8HMV7IU214
N
N
DST Asset Manager Solutions, Inc.
84-00896
N/A
N
N
N
Thomson Reuters Corporation
549300561UZND4C7B569
CA
N
PricingDirect Inc.
549300WIC0TOJ7N7GD54
N
Ice Data Services, Inc.
5493000NQ9LYLDBCTL34
N
Bloomberg L.P.
549300B56MD0ZC402L06
N
IHS Markit Ltd.
549300HLPTRASHS0E726
GB
N
N
State Street Bank and Trust Company
571474TGEMMWANRLN572
N
N
Bank - section 17(f)(1) (15 U.S.C. 80a-17(f)(1))
N
DST Asset Manager Solutions, Inc.
84-00896
SEC File Number
N
N
N
American Beacon Advisors, Inc.
549300AJADEWUE8OXQ32
Y
N
N
Resolute Investment Distributors, Inc.
8-69912
000287788
N/A
0.0
Jefferies LLC
8-15074
000002347
58PU97L1C0WSRCWADL48
6938.40000000
The Goldman Sachs Group, Inc.
N/A
N/A
784F5XWPLTWKTBV3E584
12833.25000000
JonesTrading Institutional Services LLC
8-26089
000006888
2138008JJ5PA8H5UIL69
76829.46000000
Deutsche Bank Aktiengesellschaft
8-17822
000002525
7LTWFZYICNSX8D621K86
DE
7826.10000000
STIFEL NICOLAUS & CO INC.
8-1447
000000793
5WUVMA08EYG4KEUPW589
11840.70000000
UBS AG
N/A
N/A
BFM8T61CT2L1QCEMIK50
CH
21399.03000000
Stephens Inc.
8-1927
000003496
213800LH6T9XDYZCA534
6547.74000000
Rosenblatt Securities Inc.
8-24255
000018377
549300KXQP6H4QO07E91
29718.93000000
Raymond James & Associates, Inc.
8-10999
000000705
U4ONQX15J3RO8XCKE979
12565.77000000
Cowen and Company, LLC
8-04125
000007616
549300WR155U7DVMIW58
48792.36000000
255488.67000000
State Street Bank and Trust Company
N/A
N/A
571474TGEMMWANRLN572
647628.84000000
647628.84000000
N
1098457522.32000000
N
American Beacon SiM High Yield Opportunities Fund
S000031209
0MZETX8CVFTL4Y6V3W63
Y
5
0
0
N/A
N
N
N
N
N/A
N/A
N/A
Rule 32a-4 (17 CFR 270.32a-4)
Rule 12d1-1 (17 CFR 270.12d1-1)
Y
Y
Y
N
American Beacon Advisors, Inc.
801-29198
000105552
549300AJADEWUE8OXQ32
N
Strategic Income Management, LLC
801-71765
000151956
54930067GDH4HCWUKB07
N
N
DST Asset Manager Solutions, Inc.
84-00896
N/A
N
N
N
Bloomberg L.P.
549300B56MD0ZC402L06
N
Ice Data Services, Inc.
5493000NQ9LYLDBCTL34
N
Thomson Reuters Corporation
549300561UZND4C7B569
CA
N
PricingDirect Inc.
549300WIC0TOJ7N7GD54
N
IHS Markit Ltd.
549300HLPTRASHS0E726
GB
N
N
Deutsche Bank Societa per Azioni
529900SS7ZWCX82U3W60
IT
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
Nordea Bank AB (publ) (Helsinki, Uusimaa, FI, Branch)
6SCPQ280AIY8EP3XFW53
FI
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
Citibank Europe Public Limited Company (Budapest, HU, Branch)
N1FBEDJ5J41VKZLO2475
HU
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
The Hongkong and Shanghai Banking Corporation Limited (Sydney, NSW, AU, Branch)
2HI3YI5320L3RW6NJ957
AU
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
State Street Trust Company Canada
549300L71XG2CTQ2V827
CA
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
Nordea Bank AB (Oslo, Oslo, NO, Branch)
6SCPQ280AIY8EP3XFW53
NO
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
Clearstream Banking S.A.
549300OL514RA0SXJJ44
LU
N
Y
Foreign securities depository - rule 17f-7 (17 CFR 270.17f-7)
BNP Paribas Securities Services (Athens, Attica, GR, Branch)
549300WCGB70D06XZS54
GR
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
Banco Nacional de Mexico, S. A., Integrante del Grupo Financiero Banamex.
2SFFM4FUIE05S37WFU55
MX
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
Deutsche Bank Aktiengesellschaft (Amsterdam, Noord Holland, NL, Branch)
7LTWFZYICNSX8D621K86
NL
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
State Street Bank International GmbH
ZMHGNT7ZPKZ3UFZ8EO46
DE
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
Deutsche Bank Aktiengesellschaft (Makati City, Metro Manila, PH, Branch)
7LTWFZYICNSX8D621K86
PH
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
State Street Bank and Trust Company
571474TGEMMWANRLN572
N
N
Bank - section 17(f)(1) (15 U.S.C. 80a-17(f)(1))
Deutsche Bank Aktiengesellschaft (Vienna, Vienna, AT, Branch)
7LTWFZYICNSX8D621K86
AT
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
Standard Chartered Bank (Hong Kong) Limited
X5AV1MBDXGRPX5UGMX13
HK
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
State Street Bank and Trust Company (London, GB, Branch)
571474TGEMMWANRLN572
GB
N
Y
Foreign custodian - rule 17f-5 (17 CFR 270.17f-5)
N
DST Asset Manager Solutions, Inc.
84-00896
SEC File Number
N
N
N
American Beacon Advisors, Inc.
549300AJADEWUE8OXQ32
Y
N
N
Resolute Investment Distributors, Inc.
8-69912
000287788
N/A
0.0
ADM Investor Services, Inc.
N/A
N/A
I9O8MELCUVOTLJABOX92
13543.94000000
Cowen and Company, LLC
8-04125
000007616
549300WR155U7DVMIW58
5363.55000000
Cowen Execution Services LLC
8-46838
000035693
5493005RJDJD18OPUP27
9543.32000000
Oppenheimer & Co. Inc.
8-4077
000000249
254900VH02JQR2L8XD64
270.00000000
Fondsfinans AS
N/A
N/A
5967007LIEEXZX92Z414
NO
8640.47000000
37361.28000000
Morgan Stanley & Co. LLC
8-15869
000008209
9R7GPTSO7KV3UQJZQ078
42316520.08000000
The Goldman Sachs Group, Inc.
N/A
N/A
784F5XWPLTWKTBV3E584
102335349.54000000
Credit Suisse Group AG
8-15869
000008209
549300506SI9CRFV9Z86
CH
49056151.25000000
STIFEL NICOLAUS & CO INC.
8-1447
000000793
5WUVMA08EYG4KEUPW589
47146568.75000000
J.P. Morgan Securities LLC
8-35008
000000079
ZBUT11V806EZRVTWT807
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Barclays Capital Inc.
8-41342
000019714
AC28XWWI3WIBK2824319
104690406.25000000
Deutsche Bank Aktiengesellschaft
8-17822
000002525
7LTWFZYICNSX8D621K86
DE
41869518.75000000
Wells Fargo Securities, LLC
8-22947
000007665
VYVVCKR63DVZZN70PB21
133882808.75000000
Jefferies LLC
8-15074
000002347
58PU97L1C0WSRCWADL48
114368647.70000000
Robert W. Baird & Co. Incorporated
8-00497
000008158
549300772UJAHRD6LO53
49181556.85000000
1019727911.89000000
N
1208362997.88000000
N
American Beacon Zebra Small Cap Equity Fund
S000029125
5493000UAHC2YT5PUD62
Y
5
0
0
N/A
N
N
Y
N
N
State Street Bank and Trust Company
571474TGEMMWANRLN572
N
N
Revenue sharing split
Cash collateral reinvestment fee
N/A
26978.00
Rule 32a-4 (17 CFR 270.32a-4)
Rule 12d1-1 (17 CFR 270.12d1-1)
Y
Y
Y
N
American Beacon Advisors, Inc.
801-29198
000105552
549300AJADEWUE8OXQ32
N
Zebra Capital Management, L.L.C.
801-63475
000126285
549300HPKQ1MJS1B1Z11
N
N
DST Asset Manager Solutions, Inc.
84-00896
N/A
N
N
N
Thomson Reuters Corporation
549300561UZND4C7B569
CA
N
Bloomberg L.P.
549300B56MD0ZC402L06
N
PricingDirect Inc.
549300WIC0TOJ7N7GD54
N
Ice Data Services, Inc.
5493000NQ9LYLDBCTL34
N
IHS Markit Ltd.
549300HLPTRASHS0E726
GB
N
N
State Street Bank and Trust Company
571474TGEMMWANRLN572
N
N
Bank - section 17(f)(1) (15 U.S.C. 80a-17(f)(1))
N
DST Asset Manager Solutions, Inc.
84-00896
SEC File Number
N
N
N
American Beacon Advisors, Inc.
549300AJADEWUE8OXQ32
Y
N
N
Resolute Investment Distributors, Inc.
8-69912
000287788
N/A
0.0
Merrill Lynch, Pierce, Fenner & Smith Incorporated
8-7221
000007691
8NAV47T0Y26Q87Y0QP81
4906.19000000
The Goldman Sachs Group, Inc.
N/A
N/A
784F5XWPLTWKTBV3E584
10911.77000000
Instinet, LLC
8-23669
000007897
549300MGMN3RKMU8FT57
16146.92000000
ITG Inc.
8-44218
000029299
549300S41SMIODVIT266
32161.56000000
Morgan Stanley & Co. LLC
8-15869
000008209
9R7GPTSO7KV3UQJZQ078
307.70000000
UBS AG
N/A
N/A
BFM8T61CT2L1QCEMIK50
CH
7500.44000000
71934.58000000
0.00000000
N
61794654.25000000
N
American Beacon Flexible Bond Fund
S000032923
W3EQ4U0B0X5N6N0VKL17
Y
5
0
0
N/A
N
N
N
N
N/A
N/A
N/A
Rule 17a-7 (17 CFR 270.17a-7)
Rule 32a-4 (17 CFR 270.32a-4)
Rule 12d1-1 (17 CFR 270.12d1-1)
Y
Y
Y
N
American Beacon Advisors, Inc.
801-29198
000105552
549300AJADEWUE8OXQ32
N
Payden & Rygel
801-19762
000107160
L2GZWMSRUEFTFNIS0711
N
N
Brandywine Global Investment Management, LLC
801-27797
000110783
8GTBE30G9EQQ2JEJZ302
N
N
Pacific Investment Management Company LLC
801-48187
000104559
549300KGPYQZXGMYYN38
N
N
DST Asset Manager Solutions, Inc.
84-00896
N/A
N
N
N
PricingDirect Inc.
549300WIC0TOJ7N7GD54
N
Bloomberg L.P.
549300B56MD0ZC402L06
N
Thomson Reuters Corporation
549300561UZND4C7B569
CA
N
Ice Data Services, Inc.
5493000NQ9LYLDBCTL34
N
IHS Markit Ltd.
549300HLPTRASHS0E726
GB
N
N
State Street Bank and Trust Company
571474TGEMMWANRLN572
N
N
Bank - section 17(f)(1) (15 U.S.C. 80a-17(f)(1))
N
DST Asset Manager Solutions, Inc.
84-00896
SEC File Number
N
N
N
American Beacon Advisors, Inc.
549300AJADEWUE8OXQ32
Y
N
N
Resolute Investment Distributors, Inc.
8-69912
000287788
N/A
0.0
National Financial Services Corporation
8-26740
000013041
00000000000000000000
50.00000000
Morgan Stanley & Co. LLC
8-15869
000008209
9R7GPTSO7KV3UQJZQ078
3499.31000000
Barclays Capital Inc.
8-41342
000019714
AC28XWWI3WIBK2824319
751.00000000
The Goldman Sachs Group, Inc.
N/A
N/A
784F5XWPLTWKTBV3E584
2690.02000000
UBS AG
N/A
N/A
BFM8T61CT2L1QCEMIK50
CH
234.50000000
7224.83000000
Barclays Capital Inc.
8-41342
000019714
AC28XWWI3WIBK2824319
315384588.58000000
Credit Suisse Group AG
8-15869
000008209
549300506SI9CRFV9Z86
CH
384134478.06000000
Deutsche Bank Aktiengesellschaft
8-17822
000002525
7LTWFZYICNSX8D621K86
DE
25554627.03000000
Morgan Stanley & Co. LLC
8-15869
000008209
9R7GPTSO7KV3UQJZQ078
208819594.38000000
J.P. Morgan Securities LLC
8-35008
000000079
ZBUT11V806EZRVTWT807
29175669.45000000
The Goldman Sachs Group, Inc.
N/A
N/A
784F5XWPLTWKTBV3E584
80272661.20000000
Citigroup Global Markets Inc.
8-8177
000007059
MBNUM2BPBDO7JBLYG310
29272437.51000000
The Royal Bank of Scotland Group Public Limited Company
N/A
000163176
2138005O9XJIJN4JPN90
GB
16163199.06000000
Cowen Execution Services LLC
8-46838
000035693
5493005RJDJD18OPUP27
11666246.50000000
Bank of America Corporation
8-33359
000016139
9DJT3UXIJIZJI4WXO774
19216792.94000000
1214927250.49000000
N
125092908.42000000
N
true
INTERNAL CONTROL RPT
2
americanbeaconintcrt.txt
Report of Independent Registered Public Accounting
Firm
To the Shareholders and Board of Trustees of American
Beacon Funds
In planning and performing our audits of the financial
statements of American Beacon Funds (comprised of
American Beacon Flexible Bond Fund, American
Beacon The London Company Income Equity Fund,
American Beacon SiM High Yield Opportunities Fund,
American Beacon Sound Point Floating Rate Income
Fund and American Beacon Zebra Small Cap Equity
Fund) as of and for the year ended August 31, 2018, in
accordance with the standards of the Public Company
Accounting Oversight Board (United States), we
considered American Beacon Funds' internal control
over financial reporting, including controls over
safeguarding securities, as a basis for designing our
auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with
the requirements of Form N-CEN, but not for the
purpose of expressing an opinion on the effectiveness of
American Beacon Funds' internal control over financial
reporting. Accordingly, we express no such opinion.
The management of American Beacon Funds is
responsible for establishing and maintaining effective
internal control over financial reporting. In fulfilling this
responsibility, estimates and judgments by management
are required to assess the expected benefits and related
costs of controls. A fund's internal control over financial
reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting
and the preparation of financial statements for external
purposes in accordance with U.S. generally accepted
accounting principles. A fund's internal control over
financial reporting includes those policies and
procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of
the fund; (2) provide reasonable assurance that
transactions are recorded as necessary to permit
preparation of financial statements in accordance with
U.S. generally accepted accounting principles, and that
receipts and expenditures of the fund are being made
only in accordance with authorizations of management
and trustees of the fund; and (3) provide reasonable
assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of a fund's
assets that could have a material effect on the financial
statements.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in
conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
A deficiency in internal control over financial reporting
exists when the design or operation of a control does not
allow management or employees, in the normal course
of performing their assigned functions, to prevent or
detect misstatements on a timely basis. A material
weakness is a deficiency, or a combination of
deficiencies, in internal control over financial reporting,
such that there is a reasonable possibility that a material
misstatement of American Beacon Funds' annual or
interim financial statements will not be prevented or
detected on a timely basis.
Our consideration of American Beacon Funds' internal
control over financial reporting was for the limited
purpose described in the first paragraph and would not
necessarily disclose all deficiencies in internal control
that might be material weaknesses under standards
established by the Public Company Accounting
Oversight Board (United States). However, we noted no
deficiencies in American Beacon Funds' internal control
over financial reporting and its operation, including
controls over safeguarding securities that we consider to
be a material weakness as defined above as of August
31, 2018.
This report is intended solely for the information and use
of management and the Board of Trustees of American
Beacon Funds and the Securities and Exchange
Commission and is not intended to be and should not be
used by anyone other than these specified parties.
/s/ Ernst & Young LLP
Dallas, Texas
October 25, 2018