American Beacon DoubleLine Select Income Fund (BILRX)

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 a debt issuer will fail to make timely payment of interest or principal; the decline in an issuer’s credit rating can cause the price of its debt securities to go down. In addition, loans are subject to the risk that the Fund may not be able to obtain the collateral securing the loan in a timely manner, and the value of the collateral may not cover the amount owed on the loan. Concentration in infrastructure investments makes the Fund dependent upon the successful development, construction, maintenance, renovation, enhancement or operation of infrastructure-related projects, which may be negatively affected by economic, regulatory, political, legal, demographic, environmental, and other developments. Investments in high-yield securities (commonly referred to as “junk bonds”), including loans, CLOs, restricted securities and floating-rate securities, are subject to greater levels of credit, interest rate, market and liquidity risks than investment-grade securities. Investing in foreign and emerging markets may involve heightened risk due to currency fluctuations and economic and political risks. Derivative instruments may be highly sensitive to market factors, have less liquidity than other investments and involve the potential for losses to exceed the amount invested. Because the Fund may invest in fewer issuers than a more diversified portfolio, the fluctuating value of a single holding may have a greater effect on the value of the Fund. 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.

Effective Duration is the market value weighted-average effective duration of the fixed-income holdings in the Fund.  Effective duration measures the price sensitivity of a fixed-income security with embedded options, such as callable or puttable bonds, to changes in interest rates. It estimates the percentage price change for a 1% shift in the benchmark yield curve and accounts for fluctuations in expected cash flows due to changing interest rates. Yield to Maturity (YTM) is the market value weighted-average gross annual return expected to be received if the Fund holds the fixed-income holdings in the portfolio from the reporting period to maturity, receives all coupon and principal payments on schedule, and reinvests all coupon payments at the rate of each holding’s respective yield to maturity. The Fund’s fees and expenses are not deducted from YTM, and YTM doesn’t reflect other aspects of total return, such as capital losses, so the Fund’s performance may be lower than the YTM.  Weighted Average Coupon is the market value weighted-average of gross coupon rates of fixed-income holdings in the Fund as of the end of the reporting period. Weighted Average Price is the market value weighted-average price of fixed-income holdings in the Fund as of the end of the reporting period. Effective Maturity is the market value weighted-average length of time until the principal of fixed-income holdings in the Fund with embedded options, such as callable or puttable bonds, is expected to be repaid based on prevailing interest rates. Standard Deviation is a measure of the historical volatility of the Fund’s returns.

S&P credit ratings for long-term obligations (or issuers thereof) are AAA, AA, A, BBB, BB, B, CCC, CC, C and D in decreasing order. For example, obligations rated AAA are judged to be of the highest quality, BBB to be of medium grade, CCC are judged to be speculative and obligations rated D are in default. Obligations rated in one of the four highest categories are considered to be investment grade while all other ratings are considered non-investment grade.

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