# EDGAR Filing Document

**Accession Number:** 0001700933
**File Stem:** 0001133228-23-000740
**Filing Date:** 2023-2
**Character Count:** 1691090
**Document Hash:** 323c23f28517d9bf2c35fb6fcc9e6cea
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001133228-23-000740.hdr.sgml**: 20230227

**ACCESSION NUMBER**: 0001133228-23-000740

**CONFORMED SUBMISSION TYPE**: POS AMI

**PUBLIC DOCUMENT COUNT**: 36

**FILED AS OF DATE**: 20230227

**DATE AS OF CHANGE**: 20230227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** American Beacon Institutional Funds Trust
- **CENTRAL INDEX KEY:** 0001700933
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** POS AMI
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-23239
- **FILM NUMBER:** 23676010

**BUSINESS ADDRESS:**
- **STREET 1:** 220 EAST LAS COLINAS BOULEVARD
- **STREET 2:** SUITE 1200
- **CITY:** IRVING
- **STATE:** TX
- **ZIP:** 75039
- **BUSINESS PHONE:** 817-391-6100

**MAIL ADDRESS:**
- **STREET 1:** 220 EAST LAS COLINAS BOULEVARD
- **STREET 2:** SUITE 1200
- **CITY:** IRVING
- **STATE:** TX
- **ZIP:** 75039

## Series and Classes Contracts Data

### American Beacon Diversified Fund (Series ID: S000057856)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000186839 | AAL Class    | ZABDFX          |

As filed with the Securities and Exchange Commission on February 27, 2023

<br> 1940 Act File No. 811-23239

**UNITED STATES <br> SECURITIES AND EXCHANGE COMMISSION**<br>Washington, D.C. 20549

**FORM N-1A**

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 ☒ <br> Amendment No. 28 ☒ <br> (Check appropriate box or boxes.)

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**<br>(Exact Name of Registrant as Specified in Charter)

220 East Las Colinas Boulevard, Suite 1200<br>Irving, Texas 75039<br>(Address of Principal Executive Offices) (Zip Code)

<br>Registrant's Telephone Number, including Area Code: (817) 391-6100

Jeffrey K. Ringdahl, President<br>220 East Las Colinas Boulevard<br>Suite 1200<br>Irving, Texas 75039<br>(Name and Address of Agent for Service)<br>With copies to:<br>Kathy K. Ingber, Esq.<br>K&L Gates LLP<br>1601 K Street, NW<br>Washington, D.C. 20006-1600

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| ![](pr2354img002.jpg) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; American Beacon<br> Diversified Fund |

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**PRIVATE PLACEMENT MEMORANDUM**

March 1, 2023

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| | |
|:---|:---|
|  | **Share Class** |
|  | **AAL** |
| &nbsp;&nbsp; American Beacon Diversified Fund | ZABDFX |

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The securities described herein are offered in a private placement that does not involve a "public offering" within the meaning of Section 4(a)(2) of the Securities Act of 1933, as amended ("1933 Act"), and Regulation D (including Rule 506(b)) thereunder, and have not been registered with or approved or disapproved by the Securities and Exchange Commission ("SEC") under the 1933 Act or any other regulatory authority of any jurisdiction, nor has the SEC passed upon the accuracy or adequacy of this Private Placement Memorandum. Any representation to the contrary is a criminal offense.

A Statement of Additional Information ("SAI"), with respect to the American Beacon Diversified Fund ("Fund"), with the same date has been filed with the SEC and is incorporated herein by reference. A copy of the SAI is available without charge by calling the Fund's transfer agent at 1-800-658-5811.

Shares of the Fund are being offered for investment only to qualified plans, investment companies, insurance company separate accounts, common or commingled trust funds, or similar organizations or entities that are "accredited investors" within the meaning of Regulation D under the 1933 Act, and that are also "qualified purchasers" as defined in Section 2(a)(51) of the Investment Company Act of 1940, as amended ("Investment Company Act") ("Eligible Investors").

Investors will be required to represent that they meet certain financial requirements and that they are familiar with and understand the terms, risks and merits of an investment in the Fund. No resale of Shares may be made unless the Shares are subsequently registered under the 1933 Act or an exemption from such registration is available. This Private Placement Memorandum has been prepared solely for the information of the recipient and may not be reproduced, provided to others or used for any other purpose. No person has been authorized to make representations or give any information with respect to the Shares, except the information contained herein or in the registration statement filed under the Investment Company Act.

*This Private Placement Memorandum contains important information you should know about investing, including information about risks. Please read it before you invest and keep it for future reference.*

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**Table of Contents**

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| | |
|:---|:---|
| [Fund Summary](#chapter_2_2354) |  |
| &nbsp;&nbsp; [American Beacon Diversified Fund](#chapter_2-sect1_1_2354) | [1](#chapter_2-sect1_1_2354) |
| [Additional Information About the Fund](#chapter_3_2354) |  |
| &nbsp;&nbsp; [Additional Information About Investment Policies and Strategies](#chapter_3-sect1_1_2354) | [10](#chapter_3-sect1_1_2354) |
| &nbsp;&nbsp; [Additional Information About Investments](#chapter_3-sect1_2_2354) | [10](#chapter_3-sect1_2_2354) |
| &nbsp;&nbsp; [Additional Information About Risks](#chapter_3-sect1_3_2354) | [14](#chapter_3-sect1_3_2354) |
| &nbsp;&nbsp; [Additional Information About Performance Benchmark](#chapter_3-sect1_4_2354) | [25](#chapter_3-sect1_4_2354) |
| [Fund Management](#chapter_4_2354) |  |
| &nbsp;&nbsp; [The Manager](#chapter_4-sect1_1_2354) | [25](#chapter_4-sect1_1_2354) |
| &nbsp;&nbsp; [The Sub-Advisors](#chapter_4-sect1_2_2354) | [25](#chapter_4-sect1_2_2354) |
| &nbsp;&nbsp; [Valuation of Shares](#chapter_4-sect1_3_2354) | [28](#chapter_4-sect1_3_2354) |
| [About Your Investment](#chapter_5_2354) |  |
| &nbsp;&nbsp; [Purchase and Redemption of Shares](#chapter_5-sect1_1_2354) | [28](#chapter_5-sect1_1_2354) |
| &nbsp;&nbsp; [General Policies](#chapter_5-sect1_2_2354) | [30](#chapter_5-sect1_2_2354) |
| &nbsp;&nbsp; [Frequent Trading and Market Timing](#chapter_5-sect1_3_2354) | [31](#chapter_5-sect1_3_2354) |
| &nbsp;&nbsp; [Distributions and Taxes](#chapter_5-sect1_4_2354) | [31](#chapter_5-sect1_4_2354) |
| [Additional Information](#chapter_6_2354) |  |
| &nbsp;&nbsp; [Additional Information](#chapter_6-sect1_1_2354) | [33](#chapter_6-sect1_1_2354) |
| &nbsp;&nbsp; [Portfolio Holdings](#chapter_6-sect1_2_2354) | [33](#chapter_6-sect1_2_2354) |
| &nbsp;&nbsp; *Back Cover* |  |
| [Appendix](#chapter_8_2354) |  |
| &nbsp;&nbsp; [Appendix A: Glossary](#chapter_8-sect1_1_2354) | [A-1](#chapter_8-sect1_1_2354) |

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| | |
|:---|:---|
| American Beacon Diversified Fund<sup>SM</sup> | ![](pr2354img001.jpg) |

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**PART A**<br>Please read this Private Placement Memorandum ("PPM") carefully before investing and retain it for future reference. It contains important information about the American Beacon Diversified Fund (the "Fund") that investors should know before investing. A copy of a Subscription Agreement for use in subscribing to purchase Shares of the Fund accompanies delivery of this PPM. In order to purchase Shares of the Fund, a prospective investor must satisfactorily complete, execute and deliver the Subscription Agreement to the Fund's Transfer Agent.

Investment Objective

The Fund's investment objective is long-term capital appreciation and current income.

Item 3. Risk/Return Summary: Fee Table

Not Applicable.

Principal Investment Strategies

The Fund seeks to achieve long-term capital appreciation and current income by pursuing three different investment strategies: a U.S. equity investment strategy, a fixed income investment strategy and a non-U.S. equity investment strategy. The Fund expects to allocate approximately 24%-64% of its net assets to the U.S. equity strategy, 6%-46% to the fixed income strategy and 10%-50% to the non-U.S. equity strategy.

American Beacon Advisors, Inc. (the "Manager") will allocate the Fund's assets among multiple sub-advisors, each of which may pursue one or more of the Fund's investment strategies. Within each investment strategy, allocations will be roughly equal between the sub-advisors and the Manager will use cash flows to equalize the allocations, subject to market conditions and each sub-advisor's underlying investments. The Manager believes that the allocation of the Fund's assets among multiple sub-advisors and strategies may help the Fund outperform mutual funds with other investment styles over the longer term while reducing volatility and downside risk. There can be no assurance, however, that this strategy will actually outperform other strategies or reduce risk.

*U.S. Equity Investment Strategy* – The portion of the Fund's assets allocated to the U.S. equity strategy (the "U.S. Equity Portfolio") will invest principally in equity securities of U.S. companies. The U.S. Equity Portfolio's investments will include common stocks, preferred stocks, securities convertible into common stocks, including convertible preferred securities, master limited partnerships ("MLPs"), real estate investment trusts ("REITs"), and to a lesser extent depositary receipts, which may include American depositary receipts ("ADRs"), and U.S. dollar-denominated foreign stocks traded on U.S. exchanges (collectively referred to as "stocks"). The U.S. Equity Portfolio principally invests in large-capitalization and mid-capitalization companies. The sub-advisors, Aristotle Capital Management, LLC, Barrow, Hanley, Mewhinney & Strauss, LLC ("Barrow Hanley") and Hotchkis and Wiley Capital Management, LLC, select stocks that, in their opinion, have most or all of the following characteristics (relative to the S&P 500<sup>®</sup> Index):

■ above-average earnings growth potential,

■ below-average price to earnings ratio,

■ below-average price to book value ratio, and

■ above-average dividend yields.

*Fixed Income Investment Strategy* – The portion of the Fund's assets allocated to the fixed income strategy (the "Fixed Income Portfolio") will invest principally in U.S. dollar-denominated investment grade fixed income securities. The Fixed Income Portfolio's sub-advisors are Barrow Hanley and Brandywine Global Investment Management, LLC. Its investments will include: obligations of the U.S. Government, its agencies and instrumentalities, including U.S. Government-sponsored enterprises (some of which are not backed by the full faith and credit of the U.S. Government); U.S. corporate debt securities and U.S. dollar-denominated foreign corporate debt securities, such as notes and bonds; debentures; mortgage-backed securities, including collateralized mortgage obligations, commercial mortgage-backed securities, dollar rolls, and mortgage-pass through securities; mortgage-related securities; asset-backed securities; and variable and floating rate securities, which pay interest at variable-rates based on a lending rate.

The Fixed Income Portfolio generally will invest only in debt securities that are deemed by a sub-advisor to be investment grade at the time of the purchase. If an investment held by the Fixed Income Portfolio is downgraded below investment grade, a sub-advisor may sell the investment if the sub-advisor believes that it would be advantageous to do so. The Fixed Income Portfolio will have no limitations regarding the duration of the debt securities in which it can invest.

*Non-U.S. Equity Investment Strategy* – The portion of the Fund's assets allocated to the non-U.S. equity strategy (the "Non-U.S. Equity Portfolio") will invest principally in equity securities of non-U.S. companies. The Non-U.S. Equity Portfolio will principally invest in securities included in the Morgan Stanley Capital International® All Country World ex-U.S. Index ("MSCI ACWI ex-U.S. Index"). The MSCI ACWI ex-U.S. Index is comprised of equity securities of companies from various industrial sectors whose primary trading markets are located outside the United States. Companies included in the MSCI ACWI ex-U.S. Index are selected from among the large- and mid-capitalization companies in these markets. One of the sub-advisors to the Non-U.S. Equity Portfolio, Lazard Asset Management LLC, selects stocks that, in their opinion, have most or all of the following characteristics (relative to that stock's country, sector or industry):

■ above-average return on equity or earnings growth potential,

■ below-average price to earnings or price to cash flow ratio,

■ below-average price to book value ratio, and

■ above-average dividend yields.

The other sub-advisor to the Non-U.S. Equity Portfolio, WCM Investment Management, LLC, selects stocks that they believe have clear indicators of future earnings growth, or that demonstrate other potential for growth of capital. Generally, these are stocks represented in the MSCI ACWI ex-U.S. Index, but may also include stocks of other companies with similar "growth" characteristics whose market capitalizations are within the range of the MSCI ACWI ex-U.S. Index.

The Non-U.S. Equity Portfolio principally invests in large-capitalization and mid-capitalization companies. A sub-advisor may use foreign currency futures contracts, currency swaps, and foreign currency forward contracts, including non-deliverable forward contracts ("NDFs"), as a hedge against foreign currency fluctuations.

Each of the U.S. Equity Portfolio, Fixed Income Portfolio and Non-U.S. Equity Portfolio may invest cash balances in open-end management investment companies, including money market funds, and may purchase and sell equity index futures contracts to gain market exposure on cash balances or reduce market exposure in anticipation of liquidity needs. The Fund may invest cash balances in a government money market fund advised by the Manager, with

**Private Placement Memorandum** – Fund Summary**1**

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respect to which the Manager receives a management fee. The Fund may have significant exposure to the Financials sector. However, as the sector composition of the Fund's portfolio changes over time, the Fund's exposure to the Financials sector may be lower at a future date, and the Fund's exposure to other market sectors may be higher. The Fund may lend securities held in the U.S. Equity and Non-U.S. Equity Portfolios to broker-dealers and other institutions to earn additional income.

Across all strategies each sub-advisor's investment processes incorporate the sub-advisor's environmental, social, and/or governance ("ESG") analysis as a consideration in the assessment of potential equity investments and of potential debt security investments to which such analysis is deemed applicable by the sub-advisor. A small portion of the securities in the portion of the Fund managed by Brandywine may not receive an ESG score and Brandywine may not consider ESG analysis. As ESG information is just one investment consideration, ESG considerations are not solely determinative in any investment decision made by a sub-advisor. In addition, the sub-advisors do not use ESG considerations to limit, restrict or otherwise exclude companies or sectors from the Fund's investment universe. A sub-advisor may use ESG research and/or ratings information provided by one or more third parties in performing this analysis and considering ESG risks.

Principal Risks

There is no assurance that the Fund will achieve its investment objective and you could lose part or all of your investment in the Fund. The Fund is not designed for investors who need an assured level of current income and is intended to be a long-term investment. The Fund is not a complete investment program and may not be appropriate for all investors. Investors should carefully consider their own investment goals and risk tolerance before investing in the Fund. The principal risks of investing in the Fund listed below are presented in alphabetical order and not in order of importance or potential exposure. Among other matters, this presentation is intended to facilitate your ability to find particular risks and compare them with the risks of other funds. Each risk summarized below is considered a "principal risk" of investing in the Fund, regardless of the order in which it appears.

**Allocation Risk**<br>The allocations among strategies, asset classes and market exposures may be less than optimal and may adversely affect the Fund's performance. There can be no assurance, particularly during periods of market disruption and stress, that judgments about allocations will be correct. The Fund's allocations may be invested in strategies, asset classes and market exposures during a period when such strategies, asset classes and market exposures underperform.

**Asset-Backed Securities Risk**<br>Investments in asset-backed securities are influenced by factors affecting the assets underlying the securities, including the broader market sector and individual markets, such as the auto markets. These securities may be more sensitive to changes in interest rates than other types of debt securities. Investments in asset-backed securities also are subject to risks of fixed-income securities, which include, but are not limited to, credit risk, interest rate risk, prepayment and extension risk, callable securities risk, valuation risk, liquidity risk, and restricted securities risk. A decline in the credit quality of the issuers of asset-backed 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. These securities are also subject to the risk of default on the underlying assets, particularly during periods of market downturn, and an unexpectedly high rate of defaults on the underlying assets will adversely affect the security's value.

**Callable Securities Risk**<br>The Fund may invest in fixed-income securities with call features. A call feature allows the issuer of the security to redeem or call the security prior to its stated maturity date. In periods of falling interest rates, issuers may be more likely to call in securities that are paying higher coupon rates than prevailing interest rates. In the event of a call, the Fund would lose the income that would have been earned to maturity on that security, and the proceeds received by the Fund may be invested in securities paying lower coupon rates and may not benefit from any increase in value that might otherwise result from declining interest rates.

**Convertible Securities Risk**<br>The value of a convertible security, including a convertible preferred security, typically increases or decreases with the price of the underlying common stock. In general, a convertible security is subject to the market risks of stocks when the underlying stock's price is high relative to the conversion price and is subject to the market risks of debt securities when the underlying stock's price is low relative to the conversion price. The general market risks of debt securities that are common to convertible securities include, but are not limited to, interest rate risk and credit risk. Many convertible securities have credit ratings that are below investment grade and are subject to the same risks as an investment in below investment grade debt securities (commonly known as "junk bonds"). Lower-rated debt securities may fluctuate more widely in price and yield than investment grade debt securities and may fall in price during times when the economy is weak or is expected to become weak. Convertible securities are subject to the risk that the credit standing of the issuer may have an effect on the convertible security's investment value. In addition, to the extent the Fund invests in convertible securities issued by small- or mid-capitalization companies, it will be subject to the market risks of investing in such companies. The stocks of small- and mid-capitalization companies may fluctuate more widely in price than the market as a whole and there may also be less trading in small- or mid-capitalization stocks. Convertible securities are sensitive to movement in interest rates.

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

**Credit Risk**<br>The Fund is subject to the risk that the issuer, guarantor or insurer of an obligation, or the counterparty to a transaction may fail, or become less able or unwilling, to make timely payment of interest or principal or otherwise honor its obligations or default completely. Changes in the actual or perceived creditworthiness of an issuer, or a downgrade or default affecting any of the Fund's securities, could affect the Fund's performance. Generally, the longer the maturity and the lower the credit quality of a security, the more sensitive it is to credit risk.

**Currency Risk**<br>The Fund may have exposure to foreign currencies by using various instruments. 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 Fund's investments.

**Cybersecurity and Operational Risk**<br>Operational risks arising from, among other problems, human errors, systems and technology disruptions or failures, or cybersecurity incidents may negatively impact the Fund and its service providers as well as the ability of shareholders to transact with the Fund, and result in financial losses. Cybersecurity incidents may allow an unauthorized party to gain access to Fund assets, shareholder data, or proprietary information, or cause the Fund or its service providers, as well as securities trading venues and their service providers, to suffer data corruption or lose operational functionality. Cybersecurity incidents can result from deliberate attacks or unintentional events. It is not possible for the Fund or its service providers to identify all of the operational risks that may affect the Fund

**2** **Private Placement Memorandum** – Fund Summary

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or to develop processes and controls to completely eliminate or mitigate their occurrence or effects. The Fund cannot control the cybersecurity plans and systems of its service providers, its counterparties or the issuers of securities in which the Fund invests. Most issuers in which the Fund invests are heavily dependent on computers for data storage and operations, and require ready access to the internet to conduct their business. Thus, cybersecurity incidents could also affect issuers of securities in which the Fund invests, leading to significant loss of value.

**Debentures Risk**<br>Debentures are unsecured debt securities. The holder of a debenture is protected only by the general creditworthiness of the issuer. The Fund may invest in both corporate and government debentures.

**Derivatives Risk**<br>Derivatives may involve significant risk. The use of derivative instruments may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities or other instruments underlying those derivatives, including the high degree of leverage often embedded in such instruments, and potential material and prolonged deviations between the theoretical value and realizable value of a derivative. Some derivatives have the potential for unlimited loss, regardless of the size of the Fund's initial investment. The use of derivatives may also increase any adverse effects resulting from the underperformance of strategies, asset classes and market exposures to which the Fund has allocated its assets. Derivatives may at times be highly illiquid, and the Fund may not be able to close out or sell a derivative at a particular time or at an anticipated price. Certain derivatives may be difficult to value, and valuation may be more difficult in times of market turmoil. Derivatives may also be more volatile than other types of investments. The Fund may buy or sell derivatives not traded on an exchange, which may be subject to heightened liquidity and valuation risk. Derivative investments can increase portfolio turnover and transaction costs. Derivatives also are subject to counterparty risk and credit risk. As a result, the 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 the Fund to greater losses in the event of a default by a counterparty. There may be imperfect correlation between the behavior of a derivative and that of the reference instrument underlying the derivative. An abrupt change in the price of a reference instrument could render a derivative worthless. Derivatives may involve risks different from, and possibly greater than, the risks associated with investing directly in the reference instrument. Suitable derivatives may not be available in all circumstances, and there can be no assurance that the Fund will use derivatives to reduce exposure to other risks when that might have been beneficial. Ongoing changes to the regulation of the derivatives markets and potential changes in the regulation of funds using derivative instruments could limit the Fund's ability to pursue its investment strategies. New regulation of derivatives may make them more costly, or may otherwise adversely affect their liquidity, value or performance. In addition, the Fund's investments in derivatives are subject to the following risks:

■ Foreign Currency Forward Contracts Risk. Foreign currency forward contracts, including non-deliverable forwards ("NDFs"), are derivative instruments pursuant to a contract where the parties agree to a fixed price for an agreed amount of foreign currency at an agreed date or to buy or sell a specific currency at a future date at a price set at the time of the contract and include the risks associated with fluctuations in currency. There are no limitations on daily price movements of forward contracts. There can be no assurance that any strategy used will succeed. Not all forward contracts, including NDFs, require a counterparty to post collateral, which may expose the Fund to greater losses in the event of a default by a counterparty. The use of foreign currency forward contracts may expose the Fund to additional risks, such as credit risk, liquidity risk, and counterparty risk, that it would not be subject to if it invested directly in the securities or currencies underlying the foreign currency forward contract.

■ Futures Contracts Risk. Futures contracts, including index futures, are derivative instruments pursuant to a contract where the parties agree to a fixed price for an agreed amount of securities or other underlying assets at an agreed date. The use of such derivative instruments may expose the Fund to additional risks, such as credit risk, liquidity risk, and counterparty risk, that it would not be subject to if it invested directly in the securities underlying those derivatives. There can be no assurance that any strategy used will succeed. There may at times be an imperfect correlation between the movement in the prices of futures contracts and the value of their underlying instruments or indexes. There also can be no assurance that, at all times, a liquid market will exist for offsetting a futures contract that the Fund has previously bought or sold, and this may result in the inability to close a futures contract when desired. Futures contracts may experience potentially dramatic price changes, which will increase the volatility of the Fund and may involve a small investment of cash (the amount of initial and variation margin) relative to the magnitude of the risk assumed (the potential increase or decrease in the price of the futures contract). Equity index futures contracts expose the Fund to volatility in an underlying securities index. Foreign currency futures contracts expose the Fund to risks associated with fluctuations in the value of foreign currencies.

■ Swap Agreements Risk. Swap agreements or "swaps" are transactions in which the Fund and a counterparty agree to pay or receive payments at specified dates based upon or calculated by reference to changes in specified prices or rates or the performance of specified securities, indices or other assets based on a specified amount (the "notional" amount). Swaps can involve greater risks than a direct investment in an underlying asset, because swaps typically include a certain amount of embedded leverage and as such are subject to leverage risk. If swaps are used as a hedging strategy, the Fund is subject to the risk that the hedging strategy may not eliminate the risk that it is intended to offset, due to, among other reasons, the occurrence of unexpected price movements or the non-occurrence of expected price movements. Swaps also may be difficult to value. Swaps may be subject to liquidity risk and counterparty risk, and swaps that are traded over-the-counter are not subject to standardized clearing requirements and may involve greater liquidity and counterparty risks. The Fund may invest in the following types of swaps:

• *Currency swaps*, which may be subject to currency risk and credit risk.

**Dividend Risk**<br>An issuer of stock held by the Fund may choose not to declare a dividend or the dividend rate might not remain at current levels or increase over time. Dividend paying stocks might not experience the same level of earnings growth or capital appreciation as non-dividend paying stocks. Securities that pay dividends may be sensitive to changes in interest rates and, as interest rates rise or fall, the prices of such securities may fall.

**Environmental, Social, and/or Governance Investing Risk**<br>The use of environmental, social, and/or governance ("ESG") considerations by a sub-advisor may cause the Fund 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 use of any ESG investment considerations will result in the selection of issuers that will outperform other issuers or help reduce risk in the Fund. The Fund may underperform funds that do not incorporate these considerations or incorporate different ESG considerations. Although a sub-advisor has established its own process to oversee ESG integration in accordance with the Fund's strategies, successful integration of ESG factors will depend on a sub-advisor's skill in researching, identifying, and applying these factors, as well as on the availability of relevant data. A sub-advisor may use ESG research and/or ratings information provided by one or more third parties in performing this analysis and considering ESG risks.

The regulatory landscape with respect to ESG investing in the United States is evolving and any future rules or regulations may require the Fund to change its investment process with respect to the integration of ESG factors.

**Private Placement Memorandum** – Fund Summary**3**

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**Equity Investments Risk**<br>Equity securities are subject to investment risk, issuer risk and market risk. In general, the values of stocks and other equity securities fluctuate, and sometimes widely fluctuate, in response to changes in a company's financial condition as well as general market, economic and political conditions and other factors. The Fund may experience a significant or complete loss on its investment in an equity security. In addition, stock prices may be particularly sensitive to rising interest rates, which increase borrowing costs and the costs of capital. The Fund may invest in the following equity securities, which may expose the Fund to the following additional risks:

■ Common Stock Risk. The value of a company's common stock may fall as a result of factors affecting the company, companies in the same industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company.

■ Depositary Receipts and/or U.S. Dollar-Denominated Foreign Stocks Traded on U.S. Exchanges Risk. Depositary receipts and U.S. dollar-denominated foreign stocks traded on U.S. exchanges are subject to certain of the risks associated with investing directly in foreign securities, including, but not limited to, currency exchange rate fluctuations, political and financial instability in the home country of a particular depositary receipt or foreign stock, less liquidity, more volatility, less government regulation and supervision and delays in transaction settlement.

■ Master Limited Partnerships ("MLPs") Risk. Investing in MLPs involves certain risks related to investing in the underlying assets of the MLPs and risks associated with pooled investment vehicles. Investments held by MLPs may be relatively illiquid, limiting the MLPs' ability to change their portfolios promptly in response to changes in economic or other conditions. MLPs may have limited financial resources, their securities may trade infrequently and in limited volume, they may be difficult to value, and they may be subject to more abrupt or erratic price movements than securities of larger or more broadly based companies. Holders of units in MLPs have more limited rights to vote on matters affecting the partnership and may be required to sell their common units at an undesirable time or price. The Fund's investments in MLPs will be limited to no more than 25% of its assets in order for the Fund to meet the requirements necessary to qualify as a "regulated investment company" under the Internal Revenue Code of 1986, as amended ("Internal Revenue Code").

■ Real Estate Investment Trusts ("REITs") Risk. Investments in REITs are subject to the risks associated with investing in the real estate industry, including, among other risks: adverse developments affecting the real estate industry; declines in real property values; changes in interest rates; defaults by mortgagors or other borrowers and tenants; lack of availability of mortgage funds or financing; extended vacancies of properties, especially during economic downturns; casualty or condemnation losses; and governmental actions, such as changes to tax laws, zoning regulations or environmental regulations. REITs also are dependent upon the skills of their managers and are subject to heavy cash flow dependency or self-liquidation. Regardless of where a REIT is organized or traded, its performance may be affected significantly by events in the region where its properties are located. Domestic REITs could be adversely affected by failure to qualify for tax-free "pass-through" of distributed net income and net realized gains under the Internal Revenue Code of 1986, as amended ("Internal Revenue Code"), or to maintain their exemption from registration under the Investment Company Act of 1940, as amended ("Investment Company Act"). REITs typically incur fees that are separate from those incurred by the Fund. Accordingly, the Fund's investment in REITs will result in the layering of expenses such that shareholders will indirectly bear a proportionate share of the REITs' operating expenses, in addition to paying Fund expenses. The value of REIT common stock may decline when interest rates rise. REITs tend to be small- to mid-capitalization securities and, as such, are subject to the risks of investing in small- to mid-capitalization securities.

**Foreign Investing Risk**<br>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) greater volatility, (6) different government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays or failures in transaction payment and settlement in some foreign markets. The Fund's investment in a foreign issuer may subject the Fund to regulatory, political, currency, security, economic and other risks associated with that country. Global economic and financial markets have become increasingly interconnected and conditions (including recent volatility, terrorism, war and political instability) and events (including natural disasters) in one country, region or financial market may adversely impact issuers in a different country, region or financial market.

**Growth Companies Risk**<br>Growth companies are expected to increase their earnings at a certain rate. When these expectations are not met or decrease, the prices of these stocks may decline, sometimes sharply, even if earnings showed an absolute increase. The Fund's investments in growth companies may be more sensitive to company earnings and more volatile than the market in general primarily because their stock prices are based heavily on future expectations. If an assessment of the prospects for a company's growth is incorrect, then the price of the company's stock may fall or not approach the value placed on it. Growth company stocks may also lack the dividend yield that can cushion stock price declines in market downturns.

**Hedging Risk**<br>If the Fund uses a hedging instrument at the wrong time or judges the market conditions incorrectly, or the hedged instrument does not correlate to the risk sought to be hedged, the hedge might be unsuccessful, reduce the Fund's return, or create a loss. In addition, hedges, even when successful in mitigating risk, may not prevent the Fund from experiencing losses on its investments. Hedging instruments may also reduce or eliminate gains that may otherwise have been available had the Fund not used the hedging instruments.

**Interest Rate Risk**<br>Generally, the value of investments with interest rate risk, such as fixed-income securities or derivatives, will move in the opposite direction to movements in interest rates. Factors including central bank monetary policy, rising inflation rates, and changes in general economic conditions may cause interest rates to rise, which could cause the value of the Fund's investments to decline. Interest rates may rise, perhaps significantly and/or rapidly, potentially resulting in substantial losses to the Fund. The prices of fixed-income securities or derivatives are also affected by their durations. Fixed-income securities or derivatives with longer durations generally have greater sensitivity to changes in interest rates. Rising interest rates may cause the value of the Fund's investments with longer durations and terms to maturity to decline, which may adversely affect the value of the Fund. For example, if a bond has a duration of eight years, a 1% increase in interest rates could be expected to result in an 8% decrease in the value of the bond. An increase in interest rates can impact markets broadly as well. To the extent the Fund holds an investment with a negative interest rate to maturity, the Fund may generate a negative return on that investment.

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

**Issuer Risk**<br>The value of, and/or the return generated by, a security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets.

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**Large-Capitalization Companies Risk**<br>The securities of large market capitalization companies may underperform other segments of the market because such companies may be less responsive to competitive challenges and opportunities and, at times, such companies may be out of favor with investors. Many larger-capitalization companies also may be unable to attain the high growth rates of successful smaller companies, especially during periods of economic expansion.

**Leverage Risk**<br>The Fund's use of derivative instruments may have the economic effect of financial leverage. Financial leverage magnifies the Fund's exposure to the movements in prices of an asset or class of assets underlying a derivative instrument and may result in increased volatility, which means that the Fund will have the potential for greater losses than if the Fund does 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 any increase or decrease in the Fund's exposure to an asset or class of assets and may cause the Fund's net asset value ("NAV") per share to be volatile. There can be no assurance that the Fund's use of leverage will be successful.

**Liquidity Risk**<br>The Fund is susceptible to the risk that certain investments held by the Fund may have limited marketability, be subject to restrictions on sale, be difficult or impossible to purchase or sell at favorable times or prices or become less liquid in response to market developments or adverse credit events that may affect issuers or guarantors of a security. An inability to sell a portfolio position can adversely affect the Fund's value or prevent the Fund from being able to take advantage of other investment opportunities. Market prices for such instruments may be volatile. During periods of substantial market volatility, an investment or even an entire market segment may become illiquid, sometimes abruptly, which can adversely affect the Fund's ability to limit losses. The Fund could lose money if it is unable to dispose of an investment at a time that is most beneficial to the Fund. The Fund may be required to dispose of investments at unfavorable times or prices to satisfy obligations, which may result in losses or may be costly to the Fund. For example, liquidity risk may be magnified in rising interest rate environments in the event of higher-than-normal redemption rates. Unexpected redemptions may force the Fund to sell certain investments at unfavorable prices to meet redemption requests or other cash needs. Judgment plays a greater role in pricing illiquid investments than in investments with more active markets.

**Market Risk**<br>The Fund is 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 the 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. 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 high levels of volatility in domestic and foreign financial markets that has caused losses for investors and may occur again in the future. The value of a security may decline due to adverse issuer-specific conditions, general market conditions unrelated to a particular issuer, such as changes in interest or inflation rates, 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, such as changes in the U.S. presidential administration and Congress, 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 which could result in a default on the government's obligations, 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.

■ Recent Market Events Risk. 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 Fund may be increased. An outbreak of infectious respiratory illness caused by a novel coronavirus, known as COVID-19, was first detected in late 2019 and has subsequently spread globally. The transmission of various variants of COVID-19, and efforts to contain their spread, have resulted, and may continue to result, in significant disruptions to business operations, travel restrictions and closed borders, and lower consumer demand, as well as general concern and uncertainty that has negatively affected the global economy. Any resurgence of COVID-19, a variant or other significant viruses could negatively impact the Fund and adversely impact 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. <br> Although interest rates were unusually low in recent years in the U.S. and abroad, in 2022, the Federal Reserve and certain foreign central banks began to raise interest rates as part of their efforts to address rising inflation. It is difficult to accurately predict the pace at which interest rates may continue to increase, or the timing, frequency or magnitude of any such increases. Additionally, various economic and political factors could cause the Federal Reserve or another foreign central bank to change their approach in the future and such actions may result in an economic slowdown in the U.S. and abroad. Unexpected increases in interest rates could lead to market volatility or reduce liquidity in certain sectors of the market. Deteriorating economic fundamentals may, in turn, increase the risk of default or insolvency of particular issuers, negatively impact market value, cause credit spreads to widen, and reduce bank balance sheets. Any of these could cause an increase in market volatility or reduce liquidity across various markets. Additionally, high public debt in the U.S. and other countries creates ongoing systemic and market risks and policymaking uncertainty. <br> Some countries, including the U.S., have in recent years adopted more protectionist trade policies. Slowing global economic growth; risks associated with a trade agreement between the United Kingdom and the European Union; the risks associated with ongoing trade negotiations with China; the possibility of changes to some international trade agreements; tensions, war, or open conflict between nations, such as between Russia and Ukraine or in eastern Asia; political or economic dysfunction within some nations, including major producers of oil; and dramatic changes in commodity and currency prices could affect the economies of many nations, including the United States, in ways that cannot necessarily be foreseen at the present time. Russia's military invasion of Ukraine beginning in February 2022, the responses and sanctions by the United States and other countries, and the potential for wider conflict have had, and could continue to have, severe adverse effects on the performance and liquidity of global markets, and negatively affect the value of the Fund's investments. The duration of ongoing hostilities and the vast array of sanctions and related events cannot be predicted. Those events present material uncertainty and risk with respect to markets globally and the performance of the Fund and its investments or operations could be negatively impacted. The

**Private Placement Memorandum** – Fund Summary**5**

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recent strength of the U.S. dollar could decrease foreign demand for U.S. assets, which may negatively impact certain issuers and/or industries.<br>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.

**Mid-Capitalization Companies Risk**<br>Investing in the securities of mid-capitalization companies involves greater risk and the possibility of greater price volatility, which at times can be rapid and unpredictable, than investing in larger-capitalization and more established companies. Since mid-capitalization companies may have narrower commercial markets and more limited operating history, product lines, and managerial and financial resources than larger, more established companies, the securities of these companies may lack sufficient market liquidity, and they can be particularly sensitive to changes in overall economic conditions, interest rates, borrowing costs and earnings.

**Mortgage-Backed and Mortgage-Related Securities Risk**<br>Investments in mortgage-backed and mortgage-related securities are influenced by the factors affecting the mortgages underlying the securities or the housing market. These securities tend to be more sensitive to changes in interest rates than other types of debt securities. Investments in mortgage-backed and mortgage-related securities also are subject to market risks for fixed-income securities, which include, but are not limited to, credit risk, interest rate risk, prepayment and extension risk, callable securities risk, valuation risk, liquidity risk, and restricted securities risk. A decline in the credit quality of the issuers of mortgage-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. These securities are also subject to the risk of default on the underlying mortgages, particularly during periods of market downturn, and an unexpectedly high rate of defaults on the underlying assets will adversely affect the security's value. Additionally, certain mortgage-related securities may include securities backed by pools of loans made to "subprime" borrowers or borrowers with blemished credit histories; the risk of defaults is generally higher in the case of mortgage pools that include such subprime mortgages.

■ Collateralized Mortgage Obligation ("CMOs") Risk . CMOs may offer a higher yield than U.S. government securities, but they may also be subject to greater price fluctuation and credit risk. In addition, CMOs typically will be issued in a variety of classes or series, which have different maturities and are retired in sequence. In the event of a default by an issuer of a CMO, there is no assurance that the collateral securing such CMO will be sufficient to pay principal and interest. It is possible that there will be limited opportunities for trading CMOs in the OTC market, the depth and liquidity of which will vary from time to time.

■ Commercial Mortgage-Backed Securities ("CMBS") Risk. 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.

■ Dollar Rolls Risk. The Fund may enter into dollar roll transactions, in which the Fund sells a mortgage-backed or other security for settlement on one date and buys back a substantially similar security for settlement at a later date. Dollar rolls involve a risk of loss if the market value of the securities that the Fund is committed to buy declines below the price of the securities the Fund has sold. Dollar rolls also subject the Fund to leverage risk and counterparty risk.

■ Mortgage Pass-Through Securities Risk. Mortgage pass-through securities provide for the "pass through" of the monthly payments made by individual borrowers on their residential or commercial mortgage loans, net of any fees by the security issuer and guarantor, as applicable, to the holder of the security. Small movements in interest rates, both increases and decreases, may quickly and significantly affect the value of certain mortgage pass-through securities. Mortgage pass-through securities involve interest rate risk, credit risk, prepayment risk and extension risk.

**Multiple Sub-Advisor Risk**<br>The Manager may allocate the Fund's assets among multiple sub-advisors, each of which is responsible for investing its allocated portion of the Fund's assets. To a significant extent, the Fund's performance will depend on the success of the Manager in selecting and overseeing the sub-advisors and allocating the Fund's assets to sub-advisors. The sub-advisors' investment styles may not work together as planned, which could adversely affect the performance of the Fund. In addition, because each sub-advisor makes its trading decisions independently, the sub-advisors may purchase or sell the same security at the same time without aggregating their transactions. This may cause unnecessary brokerage and other expenses.

**Other Investment Companies Risk**<br>To the extent that the Fund invests in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses charged by those investment companies in addition to the Fund's direct fees and expenses. To the extent the Fund invests in other investment companies that invest in equity securities, fixed-income securities and/or foreign securities, or that track an index, the 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. The Fund will be subject to the risks associated with investments in those companies, including but not limited to the following:

■ Government Money Market Funds Risk. Investments in government money market funds are subject to interest rate risk, credit risk, and market risk.

**Preferred Stock Risk**<br>Preferred stocks are sensitive to movements in interest rates. Preferred stocks may be less liquid than common stocks and, unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred stocks generally are payable at the discretion of an issuer and after required payments to bond holders. In certain situations, an issuer may call or redeem its preferred stock or convert it to common stock. The market prices of preferred stocks are generally more sensitive to actual or perceived changes in the issuer's financial condition or prospects than are the prices of debt securities.

**Prepayment and Extension Risk**<br>Prepayment risk is the risk that the principal amount of a bond may be repaid prior to the bond's maturity date. Due to a decline in interest rates or excess cash flow into the issuer, a debt security may be called or otherwise converted, prepaid or redeemed before maturity. If this occurs, no additional interest will be paid on the investment. The Fund may have to reinvest the proceeds in another investment at a lower rate, may not benefit from an increase in value that may result from declining interest rates, and may lose any premium it paid to acquire the security. The rate of prepayments tends to increase as interest rates fall, which could cause the average maturity of the portfolio to shorten. 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, increase the risk of default and delayed payment, heighten interest rate risk and increase the potential for a decline in its price. In addition, as a consequence of a decrease in prepayments, the amount of principal available to the Fund for investment would be reduced.

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**Sector Risk**<br>When the Fund focuses its investments in certain sectors of the economy, its performance may be driven largely by sector performance and could fluctuate more widely than if the Fund were invested more evenly across sectors. Individual sectors may be more volatile, and may perform differently, than the broader market. As the Fund's portfolio changes over time, the Fund's exposure to a particular sector may become higher or lower.

■ Financials Sector Risk. Financial services companies are subject to extensive governmental regulation, which may limit both the amounts and types of loans and other financial commitments they can make, the interest rates and fees they can charge, the scope of their activities, the prices they can charge and the amount of capital they must maintain. Profitability is largely dependent on the availability and cost of capital funds and can fluctuate significantly when interest rates change or due to increased competition. In addition, deterioration of the credit markets generally may cause an adverse impact in a broad range of markets, including U.S. and international credit and interbank money markets generally, thereby affecting a wide range of financial institutions and markets. Certain events in the Financials sector may cause an unusually high degree of volatility in the financial markets, both domestic and foreign, and cause certain financial services companies to incur large losses. Securities of financial services companies may experience a dramatic decline in value when such companies experience substantial declines in the valuations of their assets, take action to raise capital (such as the issuance of debt or equity securities), or cease operations.

**Secured, Partially Secured and Unsecured Obligation Risk**<br>Debt obligations may be secured, partially secured or unsecured. Interests in secured and partially-secured obligations have the benefit of collateral and, typically, of restrictive covenants limiting the ability of the borrower to further encumber its assets. However, there is no assurance that the liquidation of collateral from a secured or partially-secured obligation would satisfy the borrower's obligation, or that the collateral can be liquidated. Furthermore, there is a risk that the value of any collateral securing an obligation in which the Fund has an interest may decline and that the collateral may not be sufficient to cover the amount owed on the obligation. In the event the borrower defaults, the Fund's access to the collateral may be limited or delayed by bankruptcy or other insolvency laws. Unsecured debt, including senior unsecured and subordinated debt, will not be secured by any collateral and will be effectively subordinated to a borrower's secured indebtedness (to the extent of the collateral securing such indebtedness). With respect to unsecured obligations, the Fund lacks any collateral on which to foreclose to satisfy its claim in whole or in part. Such instruments generally have greater price volatility than that of fully secured holdings and may be less liquid.

**Securities Lending Risk**<br>To the extent the Fund lends its securities, it may be subject to the following risks: (i) the securities in which the Fund reinvests cash collateral may decrease in value, causing the Fund to incur a loss, or may not perform sufficiently to cover the Fund's payment to the borrower of a pre-negotiated fee or "rebate" for the use of that cash collateral in connection with the loan; (ii) non-cash collateral may decline in value, resulting in the Fund becoming under-secured; (iii) delays may occur in the recovery of loaned securities from borrowers, which could result in the Fund being unable to vote proxies or settle transactions or cause the Fund to incur increased costs; and (iv) if the borrower becomes subject to insolvency or similar proceedings, the Fund could incur delays in its ability to enforce its rights in its collateral.

**Securities Selection Risk**<br>Securities selected for the Fund may not perform to expectations. This could result in the Fund's underperformance compared to its benchmark index(es), or other funds with similar investment objectives or strategies.

**Segregated Assets Risk**<br>In connection with certain transactions that may give rise to future payment obligations, the Fund may be required to maintain a segregated amount of, or otherwise earmark, cash or liquid securities to cover the obligation. Segregated assets generally cannot be sold while the position they are covering is outstanding, unless they are replaced with other assets of equal value. The need to segregate cash or other liquid securities could limit the Fund's ability to pursue other opportunities as they arise.

**U.S. Government Securities and Government-Sponsored Enterprises Risk**<br>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. Securities held by the Fund that are issued by government-sponsored enterprises, such as the Federal National Mortgage Association (''Fannie Mae''), Federal Home Loan Mortgage Corporation (''Freddie Mac''), Federal Home Loan Bank (''FHLB''), Federal Farm Credit Bank ("FFCB"), and the Tennessee Valley Authority, are not guaranteed by the U.S. Treasury and are not backed by the full faith and credit of the U.S. government, and no assurance can be given that the U.S. government will provide financial support if these organizations do not have the funds to meet future payment obligations. U.S. government securities and securities of government-sponsored entities are also subject to credit risk, interest rate risk and market risk. 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.

**Valuation Risk**<br>Certain of the Fund's assets may be valued at a price different from the price at which they can be sold. This risk may be especially pronounced for investments that are illiquid or may become illiquid, or securities that trade in relatively thin markets and/or markets that experience extreme volatility. The valuation of the Fund's 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.

**Value Stocks Risk**<br>Value stocks are subject to the risk that their intrinsic or full value may never be realized by the market, that a stock judged to be undervalued may be appropriately priced, or that their prices may decline. Although value stocks tend to be inexpensive relative to their earnings, they can continue to be inexpensive for long periods of time. The Fund's investments in value stocks seek to limit potential downside price risk over time; however, value stock prices still may decline substantially. In addition, the Fund may produce more modest gains as a trade-off for this potentially lower risk. The Fund's investment in value stocks could cause the Fund to underperform funds that use a growth or non-value approach to investing or have a broader investment style.

**Variable and Floating Rate Securities Risk**<br>The coupons on variable and floating-rate securities are not fixed and may fluctuate based upon changes in market rates. A variable rate security has a coupon that is adjusted at pre-designated periods in response to changes in the market rate of interest on which the coupon is based. The coupon on a floating rate security is generally based on an interest rate, such as a money-market index, ICE LIBOR, Secured Overnight Financing Rate ("SOFR"), or a Treasury bill rate. Variable and floating rate securities are subject to interest rate risk and credit risk. As short-term interest rates decline, the coupons on variable and floating-rate securities typically decrease. Alternatively, during periods of rising short-term interest rates, the coupons on variable and floating-rate securities typically increase. 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. Certain types of variable and floating rate instruments may be subject to greater liquidity risk than other debt securities.

**Private Placement Memorandum** – Fund Summary**7**

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Item 4. Risk/Return Summary: Performance

Not Applicable

Management

**The Manager**<br>The Fund has retained American Beacon Advisors, Inc. to serve as its Manager.

**Sub-Advisors**<br>The Fund's assets are currently allocated among the following investment sub-advisors:

**U.S. Equity Portfolio:**

• Aristotle Capital Management, LLC

• Barrow, Hanley, Mewhinney & Strauss, LLC

• Hotchkis and Wiley Capital Management, LLC

**Fixed Income Portfolio:**

• Barrow, Hanley, Mewhinney & Strauss, LLC

• Brandywine Global Investment Management, LLC

**Non-U.S. Equity Portfolio:**

• Lazard Asset Management LLC

• WCM Investment Management, LLC

Portfolio Managers

Members of the Manager's team that are jointly and primarily responsible for the (i) selection, monitoring and oversight of the Fund's sub-advisers, (ii) allocating assets among the Manager and the Fund's sub-advisors, as applicable, and (iii) investing the portion of Fund assets that the sub-advisors determine should be allocated to short-term investments are:

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| | | |
|:---|:---|:---|
| **American Beacon Advisors, Inc.** | **Colin Hamer**<br>Portfolio Manager<br>Since 2019 | **Kirk L. Brown**<br>Senior Portfolio Manager<br>Since Fund Inception (2017)<br> **Paul Cavazos**<br>Chief Investment Officer<br>Since Fund Inception (2017) |

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Members of the sub-advisors' teams that are jointly and primarily responsible for day-to-day management of the Fund are:

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| | | |
|:---|:---|:---|
| ***U.S. Equity Portfolio*** |  |  |
| **Aristotle Capital Management LLC** | **Howard Gleicher**<br>Portfolio Manager/CEO & Chief Investment Officer<br>Since Fund Inception (2017) | **Gregory D. Padilla**<br>Principal, Portfolio Manager<br>Since 2018 |
| **Barrow, Hanley, Mewhinney & Strauss, LLC** | **Mark Giambrone**<br>Portfolio Manager/Senior Managing Director<br>Since Fund Inception (2017) |  |
| **Hotchkis and Wiley Capital Management, LLC** | **George Davis**<br>Principal, Portfolio Manager, and Executive Chairman<br>Since Fund Inception (2017)<br> **Scott McBride**<br>Portfolio Manager and Chief Executive Officer<br>Since Fund Inception (2017) | **Judd Peters**<br>Portfolio Manager<br>Since Fund Inception (2017)<br> **Patricia McKenna**<br>Principal and Portfolio Manager<br>Since Fund Inception (2017) |

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| | | |
|:---|:---|:---|
| ***Fixed Income Portfolio*** |  |  |
| **Barrow, Hanley, Mewhinney & Strauss, LLC** | **J. Scott McDonald**<br>Portfolio Manager/Senior Managing Director<br>Co-Head of Fixed Income<br>Since Fund Inception (2017)<br> **Deborah A. Petruzzelli**<br>Portfolio Manager/Managing Director<br>Since Fund Inception (2017)<br> **Matthew Routh**<br>Portfolio Manager/Director<br>Since 2021 | **Mark C. Luchsinger** **\***<br>Portfolio Manager/Senior Managing Director<br>Co-Head of Fixed Income<br>Since Fund Inception (2017)<br> **Justin Martin**<br>Portfolio Manager/Director<br>Since 2021 |

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| | | |
|:---|:---|:---|
| **Brandywine Global Investment Management** **LLC** | **Jack P. McIntyre**<br>Portfolio Manager<br>Since Fund Inception (2017)<br> **Tracy Chen**<br>Portfolio Manager<br>Since 2020<br> **Brian Kloss**<br>Portfolio Manager<br>Since 2020 | **David F. Hoffman**<br>Managing Director<br>Since Fund Inception (2017)<br> **Anujeet Sareen**<br>Portfolio Manager<br>Since Fund Inception (2017) |

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| | | |
|:---|:---|:---|
| ***Non-U.S. Equity Portfolio*** |  |  |
| **Lazard Asset Management LLC** | **Michael G. Fry**<br>Portfolio Manager/Managing Director<br>Since Fund Inception (2017)<br> **Paul Selvey-Clinton**<br>Portfolio Manager/Analyst<br>Since 2022 | **Michael A. Bennett**<br>Portfolio Manager/Managing Director<br>Since Fund Inception (2017)<br> **Michael Powers**<br>Portfolio Manager/Senior Advisor<br>Since Fund Inception (2017)<br> **Giles Edwards**<br>Portfolio Manager/Analyst<br>Since 2020 |
| **WCM Investment Management, LLC** | **Sanjay Ayer**<br>Portfolio Manager and Business Analyst<br>Since 2020<br> **Peter J. Hunkel** **\*\***<br>Portfolio Manager and Business Analyst<br>Since 2020<br> **Jon Tringale**<br>Portfolio Manager<br>Since 2022 | **Paul R. Black**<br>President, Co-CEO and Portfolio Manager<br>Since 2020<br> **Michael B. Trigg**<br>Portfolio Manager and Business Analyst<br>Since 2020 |

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\* Effective April 30, 2023, Mr. Luchsinger will retire as a Portfolio Manager for the Fund. Therefore, effective April 30, 2023, all references to Mr. Luchsinger are deleted.

\*\* Effective March 31, 2023, Mr. Hunkel will retire as a Portfolio Manager for the Fund. Therefore, effective March 31, 2023, all references to Mr. Hunkel are deleted.

Purchase and Sale of Fund Shares

Beneficial interests in the Fund have not been registered under the 1933 Act and may not be sold publicly, but are issued in reliance on Section 4(a)(2) of the Securities Act and Regulation D (including, without limitation, Rule 506(b) thereunder).

You may buy or sell shares of the Fund through the Fund or its agent by contacting the Fund at:

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| | | |
|:---|:---|:---|
| **Phone** | **To reach an American Beacon representative call 1-800-658-5811, option 1** | **To reach an American Beacon representative call 1-800-658-5811, option 1** |
| **Mail** | **American Beacon Institutional Funds Trust**<br> **P.O. Box 219643**<br> **Kansas City, MO 64121-9643** | **Overnight Delivery:**<br> **American Beacon Institutional Funds Trust**<br> **c/o SS&C GIDS, Inc.**<br> **430 West 7th Street**<br> **Suite 219643**<br> **Kansas City, MO 64105-1407** |

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You may purchase or redeem shares of the Fund on any day the New York Stock Exchange (NYSE) is open, at the Fund's NAV per share next calculated after your order is received in proper form.

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| | | | |
|:---|:---|:---|:---|
|  | **New Account**  | **Existing Account** | **Existing Account** |
|  | **Minimum** | **Purchase/Redemption Minimum by** **Check/ACH/Exchange** | **Purchase/Redemption Minimum by** **Wire** |
| AAL Class | $100000 | $50 |  |

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Beneficial interests in the Fund are issued solely in private placement transactions that do not involve any "public offering" within the meaning of Section 4(a)(2) of the Securities Act pursuant to Regulation D thereunder (including, without limitation, Rule 506(b)). Investments in the Fund may only be made by organizations or entities that are "accredited investors" within the meaning of Regulation D under the Securities Act and that are also "qualified purchasers" as defined in Section 2(a)(51) of the Investment Company Act ("Eligible Investors"). The Fund has adopted policies to limit the transfer of Shares, which may occur only pursuant to authorization by the Board of Trustees ("Board"), and only to persons who are Eligible Investors."

Tax Information

Dividends, capital gains distributions, and other distributions, if any, that you receive from the Fund are subject to federal income tax and may also be subject to state and local income taxes, unless you are a tax-exempt entity or your account is tax-deferred, such as an individual retirement account ("IRA") or a 401(k) plan (in which case you may be taxed later, upon the withdrawal of your investment from such account or plan).

Item 8. Financial Intermediary Compensation

Not Applicable.

**Private Placement Memorandum** – Fund Summary**9**

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Additional Information About the Fund

To help you better understand the Fund, this section provides a detailed discussion of the Fund's investment policies, its principal strategies and principal risks and performance benchmark. However, this PPM does not describe all of the Fund's investment practices. **Capitalized terms that are not otherwise** **defined are defined in Appendix A.** For additional information, please see the Fund's SAI, which is available by contacting us via telephone at 1-800-658-5811 or by U.S. mail at P.O. Box 219643, Kansas City, MO 64121-9643.

Additional Information About Investment Policies and Strategies

**Investment Objectives**

The Fund's investment objective is long-term capital appreciation and current income.

The Fund's investment objective is "fundamental," which means that it may be changed only with the approval of Fund shareholders.

**Temporary Defensive Policy**

The Fund may depart from its principal investment strategy by taking temporary defensive or interim positions in response to adverse market, economic, political or other conditions. During these times, the Fund may not achieve its investment objective.

Additional Information About the Management of the Fund

The Fund has retained American Beacon Advisors, Inc. to serve as its Manager. The Manager may allocate the assets of the Fund among different sub-advisors. The Manager provides or oversees the provision of all administrative, investment advisory and portfolio management services to the Fund. The Manager:

■ develops overall investment strategies for the Fund,

■ selects and changes sub-advisors,

■ allocates assets among sub-advisors,

■ monitors and evaluates the sub-advisors' investment performance,

■ monitors the sub-advisors' compliance with the Fund's investment objectives, policies and restrictions,

■ oversees the Fund's securities lending activities and actions taken by the securities lending agent to the extent applicable, and

■ directs the investment of the portion of Fund assets that the sub-advisors determine should be allocated to short-term investments.

Each sub-advisor has full discretion to purchase and sell securities for its segment of the Fund's assets in accordance with the Fund's objectives, policies, restrictions and more specific strategies provided by the Manager. The Manager oversees the sub-advisors but does not reassess individual security selections made by the sub-advisors for their portfolios.

The Fund operates in a manager-of-managers structure. The Fund and the Manager have received an exemptive order from the SEC that permits the Fund, subject to certain conditions and approval by the Board, to hire and replace sub-advisors, and materially amend agreements with sub-advisors, that are unaffiliated with the Manager without approval of the shareholders. In the future, the Fund and the Manager may rely on an SEC staff no-action letter, dated July 9, 2019, that would permit the Fund to expand its exemptive relief to hire and replace sub-advisors that are affiliated and unaffiliated with the Manager without shareholder approval, subject to approval by the Board and other conditions. The Manager has ultimate responsibility, subject to oversight by the Board, to oversee sub-advisors and recommend their hiring, termination and replacement.

The SEC order also exempts the Fund from disclosing the advisory fees paid by the Fund to individual sub advisors in a multi-manager fund in various documents filed with the SEC and provided to shareholders. In the future, the Fund may rely on the SEC staff no-action letter to expand its exemptive relief to individual sub-advisors that are affiliated with the Manager. Under that no-action letter, the fees payable to sub-advisors unaffiliated with or partially-owned by the Manager or its parent company would be aggregated, and fees payable to sub-advisors that are wholly-owned by the Manager or its parent company, if any, would be aggregated with fees payable to the Manager. Whenever a sub-advisor change is proposed in reliance on the order, in order for the change to be implemented, the Board, including a majority of its "non-interested" trustees, must approve the change. In addition, the Fund is required to provide shareholders with certain information regarding any new sub-advisor within 90 days of the hiring of any new sub-advisor.

The Fund's assets are allocated among the following investment sub-advisors:

■ Aristotle Capital Management, LLC

■ Barrow, Hanley, Mewhinney & Strauss, LLC

■ Brandywine Global Investment Management, LLC

■ Hotchkis and Wiley Capital Management, LLC

■ Lazard Asset Management LLC

■ WCM Investment Management, LLC

Additional Information About Investments

This section provides more detailed information regarding certain of the Fund's principal investment strategies as well as information regarding the Fund's strategy with respect to investment of cash balances.

**Asset-Backed Securities**<br>Asset-backed securities are interests in pools of loans, receivables or other assets, such as credit card, automobile or consumer loan receivables, retail installment loans or participations in pools of leases. They are issued by trusts or other special purpose vehicles and are collateralized by the loans, receivables or other assets that make up the pool. The Fund, the Manager, and the sub-advisor do not select the loans or other assets that collateralize each pool. Asset-backed securities are "pass through" securities, meaning that the principal and interest payment made by the borrower on the underlying assets are passed through to the asset-backed securities holder.

**Cash Management**<br>To gain market exposure on cash balances held in anticipation of liquidity needs or to reduce market exposure in anticipation of liquidity needs, the Fund may utilize the following investments:

■ Government Money Market Funds. The Fund may invest cash balances in government money market funds that are registered as investment companies under the Investment Company Act, including a government money market fund advised by the Manager, with respect to which the Manager also receives a management fee. If the Fund invests in government money market funds, the Fund becomes a shareholder of that investment company. As a result, Fund

**10** **Private Placement Memorandum** – Additional Information About the Fund

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shareholders will bear their proportionate share of the expenses, including, for example, advisory and administrative fees of the government money market funds in which the Fund invests, such as advisory fees charged by the Manager to any applicable government money market funds advised by the Manager, in addition to the fees and expenses Fund shareholders directly bear in connection with the Fund's own operations. Shareholders also would be exposed to the risks associated with government money market funds and the portfolio investments of such government money market funds, including the risk that a government money market fund's yield will be lower than the return that the Fund would have received from other investments that provide liquidity. Investments in government money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

■ Futures Contracts. To gain market exposure on cash balances held in anticipation of liquidity needs or to reduce market exposure in anticipation of liquidity needs, the Fund may purchase and sell non-commodity-based index futures contracts on a daily basis that relate to securities in which it may invest directly. An index futures contract is a contract to purchase or sell the cash value of an index, at a specified future date at a price agreed upon when the contract is made. Upon the expiration of the contract, settlement is made by exchanging cash in an amount equal to the difference between the contract price and the closing price of the index at expiration, net of any initial and variation margin that was previously paid. As cash balances are invested in securities, the Fund may invest simultaneously those balances in index futures contracts until the cash balances are delivered to settle the securities transactions. This exposes the Fund to the market risks associated with the purchased securities and the index, so the Fund may have more than 100% of its assets exposed to the markets. This can magnify gains and losses in the Fund. The Fund also may have to sell assets at inopportune times to satisfy its settlement or margin obligations. The risks associated with the use of index futures contracts also include that there may be an imperfect correlation between the changes in market value of the securities held by the Fund and the prices of futures contracts or the movement in the prices of futures contracts and the value of their underlying indices and that there may not be a liquid secondary market for a futures contract.

**Convertible Securities**<br>Convertible securities, including convertible preferred securities, include corporate bonds, notes, preferred stock, convertible preferred securities or other securities that may be converted into or exchanged for a prescribed amount of common stock or other equity securities of the same or a different issuer within a particular period of time at a specified price or formula. The conversion may occur automatically upon the occurrence of a predetermined event or at the option of either the issuer or the security holder. A convertible security may be called for redemption or conversion by the issuer after a particular date and under certain circumstances (including a specified price) established upon issue. If a convertible security held by a Fund is called for redemption or conversion, the Fund could be required to tender it for redemption, convert it into the underlying common stock, or sell it to a third party.

While typically providing a fixed-income stream, a convertible security also gives an investor the opportunity, through its conversion feature, to participate in the capital appreciation of the issuing company depending upon a market price advance in the convertible security's underlying common stock. However, convertible securities generally have less potential for gain or loss than common stocks. A convertible security entitles the holder to receive interest paid or accrued on debt or dividends paid on preferred stock until the convertible security matures or is redeemed, converted or exchanged. While convertible securities generally offer lower interest or dividend yields than non-convertible debt securities of similar quality, generally the yields are higher than the underlying common stock, and convertible securities enable the investor to benefit from increases in the market price of the underlying common stock. Because of this higher yield, convertible securities generally sell at prices above their "conversion value," which is the current market value of the stock to be received upon conversion. The difference between this conversion value and the price of convertible securities will vary over time depending on changes in the value of the underlying common stocks and interest rates.

While no securities investment is without some risk, investments in convertible securities generally entail less risk than the issuer's common stock, although the extent to which such risk is reduced depends in large measure upon the degree to which the convertible security sells above its value as a fixed-income security. The market value of convertible securities tends to decline as interest rates increase and, conversely, to increase as interest rates decline. Holders of convertible securities have a claim on the assets of the issuer prior to the common stockholders, but may be subordinated to holders of similar non-convertible securities of the same issuer. Because of the conversion feature, certain convertible securities may be considered equity equivalents.

**Currencies**<br>The Fund may have exposure to foreign currencies by using various instruments. The Fund may engage in these transactions in order to hedge or protect against uncertainty in the level of future foreign exchange rates in the purchase and sale of securities, or to shift exposure to foreign currency fluctuations from one country to another. The instruments in which the Fund may invest that provide exposure to foreign currencies include the following:

■ Currency Swaps

■ Foreign Currencies

■ Foreign Currency-Denominated Securities

■ Foreign Currency Forward Contracts

■ Foreign Currency Futures Contracts

**Derivative Investments**<br>Derivatives are financial instruments that have a value that depends upon, or is derived from, a reference asset, such as one or more underlying securities, pools of securities, commodities, options, futures, interest rates, credit rating, volatility measures, indices or currencies. The Fund may invest in the following derivative instruments:

■ Foreign Currency Forward Contracts .  Foreign currency 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 foreign currency at an agreed-upon future date, which may be any fixed number of days from the date of the contract agreed upon by the parties. A foreign currency forward contract may be a non-deliverable forward contract (NDF), which 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.

■ Futures Contracts. A futures contract is a contract to purchase or sell a particular asset, or the cash value of an asset, such as a security, commodity, currency or an index of such assets, at a specified future date, at a price agreed upon when the contract is made. Under many such contracts, no delivery of the actual underlying asset is required. Rather, upon the expiration of the contract, settlement is made by exchanging cash in an amount equal to the difference between the contract price and the closing price of the asset (e.g., a security or an index) at expiration, net of initial and variation margin that was previously paid. An equity index futures contract is based on the value of an underlying index. The Fund may have exposure to foreign currencies for investment or hedging purposes by purchasing or selling futures contracts in non-U.S. currencies. Positions in foreign currency futures contracts must be closed out through a registered U.S. exchange or foreign board of trade that provides a secondary market for such contracts. Such secondary markets may not exist or may not be accessible at a particular time, which may prevent the Fund from closing its foreign currency futures position and expose the Fund to greater losses. The Fund also may have to sell assets at inopportune times to satisfy its settlement or collateral obligations. The risks associated with the use of futures contracts also include that there may be an imperfect correlation between the changes in market value of the futures contracts and the assets underlying such contracts, and that there may not be a liquid secondary market for a futures contract.

**Private Placement Memorandum** – Additional Information About the Fund**11**

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■ Swap Agreements . A swap is a transaction in which the Fund and a counterparty agree to pay or receive payments at specified dates based upon or calculated by reference to changes in specified prices or rates (e.g., interest rates in the case of interest rate swaps) or the performance of specified securities, indices or other assets based on the nominal or face amount of a reference asset. Payments are usually made on a net basis so that, on any given day, the Fund would receive (or pay) only the amount by which its payment under the swap is less than (or exceeds) the amount of the other party's payment. The terms of the swap transaction are either negotiated by a sub-advisor and the swap counterparty or established based on terms generally available on an exchange or contract market. Nearly any type of derivative, including forward contracts, can be structured as a swap.

• Currency Swaps . The Fund may enter into currency swaps to hedge foreign currency exchange risk. A currency swap involves the exchange of payments denominated in one currency for payments denominated in another. Payments are based on a notional principal amount, the value of which is fixed, in exchange rate terms, at the swap's inception.

**Equity Investments**<br>The Fund's equity investments may include:

■ Common Stock. Common stock generally takes the form of shares in a corporation which represent an equity or ownership interest. Holders of common stock generally have voting rights in the issuer and are entitled to receive common stock dividends when, as and if declared by the company's board of directors. Returns on common stock investments consist of any dividends received plus the amount of appreciation or depreciation in the value of the stock. Common stock normally occupies the most subordinated position in an issuer's capital structure. It ranks below preferred stock and debt securities in claims for dividends and for assets of the company in a liquidation or bankruptcy. Common stock may be traded via an exchange or over-the-counter. Over-the-counter stock may be less liquid than exchange-traded stock.

■ Depositary Receipts and/or U.S. Dollar-Denominated Foreign Stocks Traded on U.S. Exchanges. ADRs are U.S. dollar-denominated receipts representing interests in the securities of a foreign issuer. ADRs typically are issued by domestic banks and trust companies and represent the deposit with the bank of the securities of a foreign issuer. Depositary receipts may not be denominated in the same currency as the securities into which they may be converted. Investing in depositary receipts and U.S. dollar-denominated foreign stocks traded on U.S. exchanges entails substantially the same risks as direct investment in foreign securities. In addition, the Fund may invest in unsponsored depositary receipts, which are implemented by a depositary bank with no direct involvement of the foreign issuers, and the issuers are not obligated to disclose material information about the underlying securities to investors in the United States. Ownership of unsponsored depositary receipts may not entitle the Fund to the same benefits and rights as ownership of the underlying securities or of sponsored depositary receipts, which are implemented in collaboration with the foreign issuers.

■ Master Limited Partnerships. MLPs are limited partnerships (or similar entities) in which the ownership units (e.g., limited partnership interests) are publicly traded and units are freely traded on a securities exchange or in the over-the-counter market. The majority of MLPs operate in oil and gas related businesses, including energy processing and distribution. As partnerships, MLPs may be subject to less regulation (and less protection for investors) under state laws than corporations. An MLP is an investment that combines the tax benefits of a limited partnership with the liquidity of publicly traded securities. Many MLPs are pass-through entities that generally are taxed at the security holder level and generally are not subject to federal or state income tax at the partnership level. Annual income, gains, losses, deductions and credits of an MLP pass through directly to its security holders. Distributions from an MLP may consist in part of a return of capital. A Fund's investments in MLPs will be limited by tax considerations. Generally, an MLP is operated under the supervision of one or more managing general partners. Limited partners are not involved in the day-to-day management of the MLP.

■ Real Estate Investment Trusts ("REITs") . Real estate investment trusts ("REITs"), which primarily invest in real estate or real estate-related loans, may issue equity or debt securities. Equity REITs own real estate properties, while mortgage REITs hold construction, development and/or long-term mortgage loans. Hybrid REITs own both. The values of REITs may be affected by changes in the value of the underlying property of the trusts, the creditworthiness of the issuer, property taxes, interest rates, tax laws and regulatory requirements, such as those relating to the environment. Both types of REITs are dependent upon management skill and the cash flows generated by their holdings, the real estate market in general and the possibility of failing to qualify for any applicable pass-through tax treatment or failing to maintain any applicable exemptive status afforded under relevant laws.

**Fixed-Income Instruments**<br>The Fund's investments in, or exposure to, fixed-income instruments may include:

■ Corporate Debt and Other Fixed-Income Securities. Corporate debt securities are fixed-income securities issued by businesses to finance their operations. Corporate debt securities include bonds, notes, debentures and commercial paper issued by companies to investors with a promise to repay the principal amount invested at maturity, with the primary difference being their maturities and secured or unsecured status. The broad category of corporate debt securities includes debt issued by domestic or foreign companies of all kinds, including companies of all market capitalizations. Corporate debt may be rated investment grade or below investment grade and may carry fixed or floating rates of interest. Corporate bonds typically carry a set interest or coupon rate, while commercial paper is commonly issued at a discount to par with no coupon. The perceived ability of the company to meet its principal and interest payment obligations is referred to as its creditworthiness, and it may be supplemented by collateral securing the company's obligations. Debentures are unsecured, medium- to long-term debt securities protected only by the general creditworthiness of the issuer, not by collateral. Because of the wide range of types and maturities of corporate debt securities, as well as the range of creditworthiness of their issuers, corporate debt securities have widely varying potentials for return and risk profiles. For example, commercial paper issued by a large established domestic corporation that is rated investment grade may have a modest return on principal, but carries relatively limited risk. On the other hand, a long-term corporate note issued by a small foreign corporation from an emerging market country that has not been rated may have the potential for relatively large returns on principal, but carries a relatively high degree of risk. Typically, the values of fixed-income securities change inversely with prevailing interest rates. In addition, in the event of bankruptcy, holders of higher-ranking senior securities may receive amounts otherwise payable to the holders of more junior securities.

■ Government-Sponsored Enterprises and U.S. Government Agencies. The Fund may invest in debt obligations of U.S. government agencies, such as the Government National Mortgage Association ("Ginnie Mae"), Export-Import Bank of the United States ("ExImBank") and the Tennessee Valley Authority ("TVA"), and government-sponsored enterprises, such as the Federal National Mortgage Association ("Fannie Mae"), Federal Home Loan Mortgage Corporation ("Freddie Mac"), Federal Agricultural Mortgage Corporation ("Farmer Mac"), Federal Home Loan Bank system ("FHLBs") and the Federal Farm Credit Banks Funding Corporation ("FFCB"). Although chartered or sponsored by Acts of Congress, debt obligations issued by these entities, other than Ginnie Mae and ExImBank, are not backed by the full faith and credit of the U.S. Government. Debt obligations issued by Fannie Mae, Freddie Mac, Farmer Mac, FHLBs, FFCB and TVA are supported by the issuers' right to borrow from the U.S. Treasury, the discretionary authority of the U.S. Treasury to lend to the issuers and the U.S. Treasury's authority to purchase the issuer's securities.

■ Investment Grade Securities. Investment grade securities that the Fund may purchase, either as part of its principal investment strategy or to implement its temporary defensive policy, include securities issued or guaranteed by the U.S. Government, its agencies and instrumentalities, as well as securities rated in one of the four highest rating categories by a rating organization rating that security (such as S&P Global Ratings, Moody's Investors Service, Inc., or Fitch, Inc.) or comparably rated by a  sub-advisor if unrated by a rating organization. The Fund, at the discretion of a sub-advisor, may retain a security that has been downgraded below the initial investment criteria.

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■ U.S. Government Securities. U.S. Government securities may include U.S. Treasury securities and securities backed by the full faith and credit of the United States, and securities issued by other U.S. government agencies and instrumentalities which have been established or sponsored by the U.S. government and that issue obligations which may not be backed by the full faith and credit of the U.S. government. U.S. Treasury obligations include Treasury Bills, Treasury Notes, and Treasury Bonds. Treasury Bills have initial maturities of one year or less; Treasury Notes have initial maturities of one to ten years; and Treasury Bonds generally have initial maturities of greater than ten years.

**Mortgage-Backed and Mortgage-Related Securities**<br>Mortgage-backed securities are mortgage-related securities that may be issued or guaranteed by the U.S. government, its agencies and instrumentalities, or issued by non-government entities. Mortgage-related securities represent ownership in pools of mortgage loans assembled for sale to investors by various government agencies, such as Government National Mortgage Association ("Ginnie Mae"), Export-Import Bank of the United States ("ExImBank") and the Tennessee Valley Authority, government-sponsored enterprises, such as the Federal National Mortgage Association ("Fannie Mae"), Federal Home Loan Mortgage Corporation ("Freddie Mac"), Federal Agricultural Mortgage Corporation ("Farmer Mac"), Federal Home Loan Bank system ("FHLBs") and the Federal Farm Credit Banks Funding Corporation ("FFCB",) as well as by non-government issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Although certain mortgage-related securities are guaranteed by a third party or otherwise similarly secured, the market value of the security, which may fluctuate, is not secured. These securities differ from conventional bonds in that the principal is paid back to the investor as payments are made on the underlying mortgages in the pool. Accordingly, the Fund receives monthly scheduled payments of principal and interest along with any unscheduled principal prepayments on the underlying mortgages. Because these scheduled and unscheduled principal payments must be reinvested at prevailing interest rates, mortgage-backed securities do not provide an effective means of locking in long-term interest rates for the Fund.

The types of mortgage-backed and mortgage-related securities that a Fund may invest in include:

■ CMOs. CMOs and interests in real estate mortgage investment conduits ("REMICs") are debt securities collateralized by mortgages or mortgage pass-through securities. CMOs divide the cash flow generated from the underlying mortgages or mortgage pass-through securities into different groups referred to as "tranches," which are then retired sequentially over time in order of priority. Under the traditional CMO structure, the cash flows generated by the mortgages or mortgage pass-through securities in the collateral pool are used to first pay interest and then pay principal to the CMO bondholders. The bonds issued under such a CMO structure are retired sequentially as opposed to the pro-rata return of principal found in traditional pass-through obligations. Subject to the various provisions of individual CMO issues, the cash flow generated by the underlying collateral (to the extent it exceeds the amount required to pay the stated interest) is used to retire the bonds. Under the CMO structure, the repayment of principal among the different tranches is prioritized in accordance with the terms of the particular CMO issuance. The "fastest pay" tranche of bonds would initially receive all principal payments. When that tranche of bonds is retired, the subsequent tranches specified in the CMO prospectus receive all of the principal payments until they are retired. The sequential retirement of tranches continues until the last tranche is retired. CMOs also issue sequential and parallel pay classes, including planned amortization and target amortization classes, and fixed and floating rate CMO tranches. Parallel pay CMOs are structured to provide payments of principal on each payment date to more than one class, concurrently on a proportionate or disproportionate basis. Sequential pay CMOs generally pay principal to only one class at a time while paying interest to several classes. <br>The principal governmental issuers of CMOs are Fannie Mae and Freddie Mac,. 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. <br>A 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.

■ CMBSs. CMBSs include securities that reflect an interest in, and are secured by, a mortgage loan or pool of mortgage loans on commercial real estate property, such as industrial and warehouse properties, office buildings, hotels, retail space and shopping malls, multifamily properties and cooperative apartments. Interest and principal payments from the underlying loans are passed through to the Fund according to a schedule of payments. 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 saleability of the real estate at the relevant time.

■ Dollar Rolls. A dollar roll is a contract to sell mortgage-backed securities as collateral against a commitment to repurchase similar, but not identical, mortgage-backed securities on a specified future date. During this "roll period," a Fund would forego principal and interest paid on such securities, and the other party to the contract is entitled to all principal, interest, and prepayment cash flows while it holds the collateral. The Fund would be compensated by the difference between the current sale price and the forward price for the future purchase, as well as by the interest earned on the cash proceeds of the initial sale. Dollar roll transactions may result in higher transaction costs. The Fund only enters into "covered rolls," which means that the Fund maintains with its custodian segregated, or earmarked, liquid securities in an amount at least equal to the forward purchase obligation.

**Other Investment Companies**<br>The Fund at times may invest in shares of other investment companies, including government money market funds. The Fund may invest in securities of an investment company advised by the Manager, with respect to which the Manager also receives a management fee. Investments in the securities of other investment companies may involve duplication of advisory fees and certain other expenses. By investing in another investment company, the Fund becomes a shareholder of that investment company. As a result, Fund shareholders indirectly will bear the Fund's proportionate share of the fees and expenses paid by shareholders of the other investment company, in addition to the fees and expenses Fund shareholders directly bear in connection with the Fund's own operations. Investment in other investment companies may involve the payment of substantial premiums above the value of such issuer's portfolio securities.

**Private Placement Memorandum** – Additional Information About the Fund**13**

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■ Government Money Market Funds. The Fund can invest free cash balances in registered open-end investment companies regulated as government money market funds under the Investment Company Act to provide liquidity or for defensive purposes. The Fund could invest in government money market funds rather than purchasing individual short-term investments. If the Fund invests in government money market funds, shareholders will bear their proportionate share of the expenses, including for example, advisory and administrative fees, of the government money market funds in which the Fund invests, including advisory fees charged by the Manager to any applicable government money market funds advised by the Manager. Although a government 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 government money market fund's investments, increases in interest rates and deteriorations in the credit quality of the instruments the government money market fund has purchased may reduce the government money market fund's yield and can cause the price of a government money market security to decrease. In addition, a government money market fund is subject to the risk that the value of an investment may be eroded over time by inflation.

**Preferred Stock**<br>Preferred stock blends the characteristics of a bond and common stock. It can offer the higher yield of a bond and has priority over common stock in equity ownership, but it does not have the seniority of a bond and its participation in the issuer's growth may be limited. Preferred stock has preference over common stock in the receipt of dividends and in any residual assets after payment to creditors should the issuer be dissolved. Although the dividend is typically set at a fixed annual rate, in some circumstances it can be variable, changed or omitted by the issuer. Preferred stock may pay fixed or adjustable rates of return. Preferred stock dividends may be cumulative or noncumulative, fixed, participating, auction rate or other. Preferred stock may have mandatory sinking fund provisions, as well as provisions that allow the issuer to redeem or call the stock.

**Variable and Floating Rate Securities**<br>Variable and floating rate securities are securities that pay interest at rates that adjust whenever a specified interest rate changes and/or that reset on predetermined dates (such as the last day of a month or a calendar quarter). The terms of such obligations typically provide that interest rates are adjusted based upon an interest or market rate adjustment as provided in the respective obligations. The adjustment intervals may be regular, and range from daily up to annually, or may be event-based, such as based on a change in the prime rate. Variable rate obligations typically provide for a specified periodic adjustment in the interest rate, while floating rate obligations typically have an interest rate which changes whenever there is a change in the external interest or market rate. Because of the interest rate adjustment feature, variable and floating rate securities provide the Fund with a certain degree of protection against rises in interest rates, although the Fund will participate in any declines in interest rates as well. Generally, changes in interest rates will have a smaller effect on the market value of variable and floating rate securities than on the market value of comparable fixed-rate obligations. Thus, investing in variable and floating rate securities generally allows less opportunity for capital appreciation and depreciation than investing in comparable fixed-rate securities.

Additional Information About Risks

The greatest risk of investing in a mutual fund is that its returns will fluctuate and you could lose money. The following section provides additional information regarding the Fund's principal risk factors in light of its principal investment strategies. The principal risks of investing in the Fund listed below are presented in alphabetical order and not in order of importance or potential exposure. Among other matters, this presentation is intended to facilitate your ability to find particular risks and compare them with the risks of other funds. Each risk summarized below is considered a "principal risk" of investing in the Fund, regardless of the order in which it appears.

**Allocation Risk**<br>This is the risk that allocations among strategies, asset classes and market exposures may be less than optimal and may adversely affect the Fund's performance. There can be no assurance, particularly during periods of market disruption and stress, that judgments about asset allocation will be correct. Some broad asset categories and sub-classes may perform below expectations, or below the securities markets generally, over short and extended periods. The Fund may be negatively impacted if market correlations change abruptly or unexpectedly. The Fund's allocations may be invested in strategies, asset classes and market exposures during a period when such strategies, asset classes and market exposures underperform.

**Asset-Backed Securities Risk**<br>Investments in asset-backed securities are influenced by the factors affecting the assets underlying the securities, including the broader market sector and individual markets, such as the auto markets. These securities tend to be more sensitive to changes in interest rates than other types of debt securities. Investments in asset-backed securities are subject to market risks for fixed-income securities which include, but are not limited to, credit risk, interest rate risk, prepayment and extension risk, callable securities risk, valuation risk, liquidity risk, and restricted securities risk. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain asset-backed securities. If interest rates fall, the rate of prepayments tends to increase as borrowers are motivated to pay off debt and refinance at new lower rates. When obligations are prepaid and when securities are called, a Fund may have to reinvest in securities with a lower yield or fail to recover additional amounts (i.e., premiums) paid for securities with higher interest rates, resulting in an unexpected capital loss and/or a decrease in the amount of dividends and yield. Because prepayments increase when interest rates fall, the prices of asset-backed securities do not increase as much as other fixed-income securities when interest rates fall. When interest rates rise, borrowers are less likely to prepay their loans. A decreased rate of prepayments lengthens the expected maturity of asset-backed securities. Therefore, the prices of asset-backed securities may decrease more than prices of other fixed-income securities when interest rates rise. Rising interest rates tend to extend the duration of these securities, making them more sensitive to changes in interest rates. Rising interest rates also may increase the risk of default by borrowers. As a result, in a period of rising interest rates, the Fund may experience additional volatility and losses. A decline in the credit quality of and defaults by the issuers of asset-backed securities or instability in the markets for such securities may affect the value and liquidity of such securities, which could result in losses to a Fund.

**Callable Securities Risk**<br>The Fund may invest in fixed-income securities with call features. A call feature allows the issuer of the security to redeem or call the security prior to its stated maturity date. In periods of falling interest rates, issuers may be more likely to call in securities that are paying higher coupon rates than prevailing interest rates. In the event of a call, the Fund would lose the income that would have been earned to maturity on that security, the proceeds received by the Fund may be invested in securities paying lower coupon rates or other less favorable characteristics, and the Fund may not benefit from any increase in value that might otherwise result from declining interest rates. Thus, the Fund's income could be reduced as a result of a call and this may reduce the amount of the Fund's distributions. In addition, the market value of a callable security may decrease if it is perceived by the market as likely to be called, which could have a negative impact on the Fund's total return.

**Convertible Securities Risk**<br>The conversion value of a convertible security, including a convertible preferred security, is the market value that would be received if the convertible were converted to its underlying common stock. The value of a convertible security typically increases or decreases with the price of the underlying common stock. When conversion value is substantially below investment value, the convertible's price tends to be influenced more by its yield, so changes in the price of the underlying common stock may not have as much of an impact. Conversely, the convertible's price tends to be influenced more by the price of the underlying common stock when conversion value is comparable to or exceeds investment value. In general, a convertible security is subject to the market risks of stocks,

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and its price may be as volatile as that of the underlying stock when the underlying stock's price is high relative to the conversion price. A convertible security also is subject to the market risks of debt securities, and is particularly sensitive to changes in interest rates, when the underlying stock's price is low relative to the conversion price. The investment value of a convertible is based on its yield and tends to decline as interest rates increase. The general market risks of debt securities that are common to convertible securities include, but are not limited to, interest rate risk and credit risk, and there is a risk that the credit standing of the issuer may have an effect on the convertible security's investment value. Because their value can be influenced by many different factors, convertible securities generally have less potential for gain or loss than the underlying common stocks. Securities that are convertible other than at the option of the holder generally do not limit the potential for loss to the same extent as securities that are convertible at the option of the holder. Many convertible securities have credit ratings that are below investment grade (commonly known as "junk bonds") and are subject to the same risks as an investment in lower-rated debt securities. Lower-rated debt securities may fluctuate more widely in price and yield than investment grade debt securities and may fall in price during times when the economy is weak or is expected to become weak. The credit rating of a company's convertible securities is generally lower than that of its non-convertible debt securities. Convertible securities are normally considered "junior" securities — that is, the company usually must pay interest on its non-convertible debt securities before it can make payments on its convertible securities. If the issuer stops paying interest or principal, convertible securities may become worthless and the Fund could lose its entire investment.

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

Some of the markets in which the Fund may effect derivative transactions are OTC or "interdealer" markets. The participants in such markets are typically not subject to credit evaluation and regulatory oversight to the same extent as are members of a clearing organization. This exposes the Fund to the risk that a counterparty will not settle a transaction in accordance with its terms and conditions because of a credit or liquidity problem with the counterparty. Recent turbulence in the financial markets could exacerbate counterparty risk resulting from OTC derivative transactions.

The Fund is also subject to the risk that an FCM would default on an obligation set forth in an agreement between the Fund and the FCM. This risk exists at and from the time that the Fund enters into derivatives transactions that are centrally cleared. In such cases, a clearing organization becomes the Fund's counterparty and the principal counterparty risk is that the clearing organization itself will default. In addition, the FCM may hold margin posted in connection with those contracts and that margin may be re-hypothecated (or re-pledged) by the FCM, and lost, or its return delayed, due to a default by the FCM or other customer of the FCM. The FCM may itself file for bankruptcy, which would either delay the return of, or jeopardize altogether, the assets posted by the FCM as margin in response to margin calls relating to cleared positions. If a counterparty fails to meet its contractual obligations, goes bankrupt, or otherwise experiences a business interruption, the Fund could miss investment opportunities or otherwise hold investments it would prefer to sell, resulting in losses for the Fund.

**Credit Risk**<br>The Fund is subject to the risk that the issuer, guarantor or insurer of an obligation, or the counterparty to a transaction may fail, or become less able or unwilling, to make timely payment of interest or principal or otherwise honor its obligations or default completely. There are varying degrees of credit risk, depending on the financial condition of an issuer, guarantor or counterparty, as well as the terms of an obligation, which may be reflected in the credit rating of the issuer, guarantor or counterparty. The strategies utilized by a 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 Fund 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, are not a guarantee of future credit performance of such securities, are not a guarantee of quality and do not protect against a decline in the value of a security. 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. A decline in the credit rating of an individual security held by the Fund may have an adverse impact on its price and may make it difficult for the Fund to sell it. 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. Changes in the actual or perceived creditworthiness of an issuer, or a downgrade or default affecting any of the Fund's securities, could affect the Fund's performance. Generally, the longer the maturity and the lower the credit quality of a security, the more sensitive it is to credit risk.

**Currency Risk**<br>The Fund may have exposure to foreign currencies by using various instruments. Foreign currencies may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, may be affected unpredictably by intervention, or the failure to intervene, of the U.S. or foreign governments, central banks, or supranational entities such as the International Monetary Fund, and may be affected by the imposition of currency controls or political developments in the U.S. or abroad. As a result, the Fund's exposure to foreign currencies may reduce the returns of the Fund. Foreign currencies may decline in value relative to the U.S. dollar and other currencies and thereby affect the Fund's investments. In addition, changes in currency exchange rates could adversely impact investment gains or add to investment losses. Currency derivatives may not always work as intended, and in specific cases, the Fund may be worse off than if it had not used such instrument(s). In the case of hedging positions, the U.S. dollar or other currency may decline in value relative to the foreign currency that is being hedged and thereby affect the Fund's investments. There may not always be suitable hedging instruments available. Even where suitable hedging instruments are available, the Fund may choose to not hedge its currency risks.

**Cybersecurity and Operational Risk**<br>Operational risks arising from, among other problems, human errors, systems and technology disruptions or failures, or cybersecurity incidents may negatively impact the Fund, its service providers, and third-party fund distribution platforms, as well as the ability of shareholders to transact with the Fund and result in financial losses. Cybersecurity incidents may allow an unauthorized party to gain access to Fund assets, shareholder data, or proprietary information, or cause the Fund or its service providers, as well as the securities trading venues and their service providers, to suffer data corruption or lose operational functionality. Cybersecurity incidents can result from deliberate attacks or unintentional events. A cybersecurity incident could, among other things, result in the loss or theft of shareholder data or funds, shareholders or service providers being unable to access electronic systems (also known as "denial of services"), loss or theft of proprietary information or corporate data, the inability to process Fund transactions, interference with the Fund's ability to calculate its NAV, impediments to trading, physical damage to a computer or network system, or remediation costs associated with system repairs. The occurrence of any of these problems could result in a loss of information, violations of applicable privacy and other laws, regulatory scrutiny, penalties, fines, reputational damage, additional compliance requirements, and other consequences, any of which could have a material adverse effect on the Fund or its shareholders. The Manager, through its monitoring and oversight of Fund service providers, endeavors to determine that service providers take appropriate precautions to avoid

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and mitigate risks that could lead to such problems. While the Manager has established business continuity plans and risk management systems seeking to address these problems, there are inherent limitations in such plans and systems, and it is not possible for the Manager, other Fund service providers, or third-party fund distribution platforms to identify all of the operational risks that may affect the Fund or to develop processes and controls to completely eliminate or mitigate their occurrence or effects. Recent geopolitical tensions may increase the scale and sophistication of deliberate attacks, particularly those from nation-states or from entities with nation-state backing. The Fund cannot control the cybersecurity plans and systems of its service providers, its counterparties or the issuers of securities in which the Fund invests. Most issuers in which the Fund invests are heavily dependent on computers for data storage and operations, and require ready access to the internet to conduct their business. Thus, cybersecurity incidents could also affect issuers of securities in which the Fund invests, leading to significant loss of value.

**Debentures Risk**<br>In the event of a default or bankruptcy by the issuer, as unsecured creditors, debenture holders will not have a claim against any specific assets of the issuer and will therefore only be paid from the issuer's assets after the secured creditors have been paid. The Fund is subject to the risk that the value of a debenture will fluctuate with changes in interest rates and the perceived ability of the issuer to make interest or principal payments on time. The Fund may invest in both corporate and government debentures.

**Derivatives Risk**<br>Derivatives are financial instruments that have a value which depends upon, or is derived from, a reference asset, such as one or more underlying securities, pools of securities, options, futures, indexes or currencies. The Fund may use derivatives to enhance total return of its portfolio, to hedge against fluctuations in interest rates or currency exchange rates, to change the effective duration of its portfolio, or to manage certain investment risks or for exposure to a market as a substitute for the purchase or sale of the underlying currencies or securities. The Fund may also hold derivative instruments to obtain economic exposure to an issuer without directly holding its securities. Derivatives may involve significant risk. The use of derivative instruments may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities or other instruments underlying those 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 the Fund, the Fund could lose money. In addition, leverage embedded in a derivative instrument can expose the 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 derivatives have the potential for unlimited loss, regardless of the size of the Fund's initial investment, for example, where the Fund may be called upon to deliver a security it does not own. As a result, the Fund could lose more than the amount it invests. The use of derivatives may also increase any adverse effects resulting from the underperformance of strategies, asset classes and market exposures to which the Fund has allocated its assets. Derivatives may at times be illiquid and may be more volatile than other types of investments. The 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.

The Fund may buy or sell derivatives not traded on organized exchanges. The 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, the 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 the Fund to greater losses in the event of a default by a counterparty. Certain derivatives require the Fund to post margin to secure its future obligation; if the Fund has insufficient cash, it may have to sell investments from its portfolio to meet daily variation margin requirements at a time when it may be disadvantageous to do so. The 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. There may be imperfect correlation between the behavior of a derivative and that of the reference instrument underlying the derivative. An abrupt change in the price of a reference instrument could render a derivative worthless. Derivatives may involve risks different from, and possibly greater than, the risks associated with investing directly in the reference instrument. Suitable derivatives may not be available in all circumstances, and there can be no assurance that the 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 the 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 the 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 the Fund not used the hedging instruments. The Fund may not hedge certain risks in particular situations, even if suitable instruments are available.

The Fund's ability to use derivatives may also be limited by certain regulatory and tax considerations. For example, the CFTC and the designated contract markets have established position limits for certain futures contracts, which may restrict the ability of the Fund, or the Manager or sub-advisor entering trades on the Fund's behalf, to make certain trading decisions. Rule 18f-4 places limits on the use of derivatives by registered investment companies, such as the Fund. A fund that relies on Rule 18f-4 is required to comply with limits on the amount of leverage-related risk that the fund may obtain, and may also be required to adopt and implement a derivatives risk management program and designate a derivatives risk manager or adopt policies and procedures designed to manage a fund's derivatives risks.

Ongoing changes to the regulation of the derivatives markets and potential changes in the regulation of funds using derivative instruments could limit the Fund's ability to pursue its investment strategies. The extent and impact of such 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. The Fund may be subject to the risks associated with investments in derivatives, including but not limited to the following:

■ Foreign Currency Forward Contracts Risk. Foreign currency forward contracts, including NDFs, are derivative instruments pursuant to a contract where the parties agree to pay a fixed price for an agreed amount of foreign currency at an agreed date or to buy or sell a specific currency at a future date at a price set at the time of the contract. The use of foreign currency forward contracts may expose the Fund to additional risks, such as credit risk, liquidity risk, and counterparty risk, that it would not be subject to if it invested directly in the securities or currencies underlying the foreign currency forward contract. Foreign currency forward transactions, including NDFs, and forward currency contracts include risks associated with fluctuations in currency, and other risks inherent in trading derivatives. There are no limitations on daily price movements of forward contracts. Not all forward contracts, including NDFs, require a counterparty to post collateral, which may expose the Fund to greater losses in the event of a default by a counterparty. There may at times be an imperfect correlation between the price of a forward contract and the underlying currency, which may increase the volatility of the Fund. The Fund bears the risk of loss of the amount expected to be received under a forward contract in the event of the default or bankruptcy of a counterparty. If such a default occurs,

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the Fund will have contractual remedies pursuant to the forward contract, but such remedies may be subject to bankruptcy and insolvency laws which could affect the Fund's rights as a creditor. There can be no assurance that any strategy used will succeed.

■ Futures Contracts Risk. There may at times be an imperfect correlation between the movement in the prices of futures contracts and the value of their underlying instruments or index. Futures contracts may experience dramatic price changes (losses) and imperfect correlations between the price of the contract and the underlying security, index or currency, which may increase the volatility of the  Fund. Futures contracts may involve a small investment of cash (the amount of initial and variation margin) relative to the magnitude of the risk assumed (the potential increase or decrease in the price of the futures contract). There can be no assurance that, at all times, a liquid market will exist for offsetting a futures contract that the  Fund has previously bought or sold and this may result in the inability to close a futures contract when desired. When the  Fund purchases or sells a futures contract, it is subject to daily variation margin calls that could be substantial. If the  Fund has insufficient cash to meet daily variation margin requirements, it might need to sell securities at a time when such sales are disadvantageous. Equity index futures contracts expose the Fund to volatility in an underlying securities index. Foreign currency futures contracts expose the Fund to risks associated with fluctuations in the value of foreign currencies.

■ Swap Agreements Risk. Swap agreements or "swaps" are transactions in which the Fund and a counterparty agree to pay or receive payments at specified dates based upon or calculated by reference to changes in specified prices or rates (e.g., interest rates in the case of interest rate swaps) or the performance of specified securities, indices or other assets based on a specified amount (the "notional" amount). Swaps can involve greater risks than a direct investment in an underlying asset, because swaps typically include a certain amount of embedded leverage and as such are subject to leveraging risk. If swaps are used as a hedging strategy, the Fund is subject to the risk that the hedging strategy may not eliminate the risk that it is intended to offset, due to, among other reasons, a lack of correlation between the swaps and the portfolio of assets that the swaps are designed to hedge or replace. Swaps also may be difficult to value. Swaps may be subject to liquidity risk and counterparty risk. The value of swaps may be affected by changes in overall market movements and changes in interest rates and currency exchange rates. Some swaps are now executed through an organized exchange or regulated facility and cleared through a regulated clearing organization. A highly liquid secondary market may not exist for certain swaps, and there can be no assurance that one will develop. The use of an organized exchange or market for swap transactions may result in certain trading and valuation efficiencies for swaps, however, this may not always be the case. The absence of an organized exchange or market for swaps transactions may result in difficulties in trading and valuation, especially in the event of market disruptions. Swaps that are traded over-the-counter also are not subject to standardized clearing requirements and the direct oversight of self-regulatory organizations. Swaps may involve greater liquidity and counterparty risks, including settlement risk, as well as collateral risk (i.e., the risk that the swap will not be properly secured with sufficient collateral), legal risk (i.e., the risk that a swap will not be legally enforceable on all of its terms) and operational risk (i.e., the risk of processing and human errors, inadequate or failed internal or external processes, failures in systems and technology errors or malfunctions). The Fund may invest in the following types of swaps, which may be subject to the risks discussed above, as well as the additional risks as described below:

• Currency Swaps . The Fund may enter into currency swaps to hedge foreign currency exchange risk. A currency swap involves the exchange of payments denominated in one currency for payments denominated in another. Payments are based on a notional principal amount, the value of which is fixed, in exchange rate terms, at the swap's inception.

**Dividend Risk**<br>The Fund's investments in dividend-paying stocks could cause the Fund to underperform funds that invest without consideration of a company's track record of paying dividends. An issuer of stock held by the Fund may choose not to declare a dividend or the dividend rate might not remain at current levels or increase over time. Dividend paying stocks might not experience the same level of earnings growth or capital appreciation as non-dividend paying stocks. In addition, stocks of companies with a history of paying dividends may not participate in a broad market advance to the same degree as most other stocks, and a sharp rise in interest rates or an economic downturn could cause a company to unexpectedly reduce or eliminate its dividend. Securities that pay dividends may be sensitive to changes in interest rates, and as interest rates rise, the prices of such securities may fall. At times, the Fund may not be able to identify dividend-paying stocks that are attractive investments. The income received by the Fund will also fluctuate due to the amount of dividends that companies elect to pay.

**Environmental, Social, and/or Governance Investing Risk**<br>The use of environmental, social and/or governance ("ESG") considerations by a sub-advisor may cause the Fund 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 use of any ESG investment considerations will result in the selection of issuers that will outperform other issuers or help reduce risk in the Fund. The use of ESG investment considerations may also affect the Fund's exposure to certain investments, sectors or industries, which may impact the Fund's relative investment performance depending on the performance of those issuers, sectors or industries. The Fund may underperform funds that do not incorporate these considerations or incorporate different ESG considerations. Although a sub-advisor has established its own ESG integration process in accordance with the Fund's investment strategies, successful integration of ESG factors will depend on a sub-advisor's skill in researching, identifying, and applying these factors, as well as on the availability of relevant data. A sub-advisor may use ESG research and/or ratings information provided by one or more third parties in performing an ESG analysis and considering ESG risks. Because there are few generally accepted standards to use in such considerations, the information may not be readily available, complete or accurate, and may differ from the information and considerations used for other funds. which could negatively impact the Fund's performance or create additional risk in the portfolio.

The regulatory landscape with respect to ESG investing in the United States is evolving and any future rules or regulations may require the Fund to change its investment process with respect to the integration of ESG factors.

**Equity Investments Risk**<br>Equity securities are subject to investment risk, issuer risk and market risk. In general, the values of stocks and other equity securities fluctuate, and sometimes widely fluctuate, in response to changes in a company's financial condition as well as general market, economic and political conditions and other factors. The Fund may experience a significant or complete loss on its investment in an equity security. In addition, stock prices may be particularly sensitive to rising interest rates, which increase borrowing costs and the costs of capital. The Fund may invest in the following equity securities, which may expose the Fund to the following additional risks:

■ Common Stock Risk. The value of a company's common stock may fall as a result of factors directly relating to that company, such as decisions made by its management or decreased demand for the company's products or services. A stock's value may also decline because of factors affecting not just the company, but also companies in the same industry or sector. The price of a company's stock may also be affected by changes in financial markets that are relatively unrelated to the company, such as changes in interest rates, exchange rates or industry regulation. Companies that pay dividends on their common stock generally only do so after they invest in their own business and make required payments to bondholders and on other debt and preferred stock. Therefore, the value of a company's common stock will usually be more volatile than its bonds, other debt and preferred stock. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company. In the event of an issuer's bankruptcy, there is substantial risk that there will be nothing left to pay common stockholders after payments, if any, to bondholders and preferred stockholders have been made.

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■ Depositary Receipts and/or U.S. Dollar-Denominated Foreign Stocks Traded on U.S. Exchanges Risk. The  Fund may invest in securities issued by foreign companies through ADRs and/or U.S. dollar-denominated foreign stocks traded on U.S. exchanges. These securities are generally subject to many of the same risks of investing in the foreign securities that they evidence or into which they may be converted, including, but not limited to, currency exchange rate fluctuations, political and financial instability in the home country of a particular depositary receipt or foreign stock, less liquidity and more volatility, less government regulation and supervision and delays in transaction settlement. There may be an imperfect correlation between the market value of depositary receipts and the underlying foreign securities.

■ Master Limited Partnerships ("MLPs") Risk. Investing in MLPs involves certain risks related to investing in the underlying assets of the MLPs and risks associated with pooled investment vehicles. Investments held by MLPs may be relatively illiquid, limiting the MLPs' ability to change their portfolios promptly in response to changes in economic or other conditions. MLPs may have limited financial resources, their securities may trade infrequently and in limited volume, they may be difficult to value, and they may be subject to more abrupt or erratic price movements than securities of larger or more broadly based companies. Holders of units in MLPs have more limited rights to vote on matters affecting the partnership and may be required to sell their common units at an undesirable time or price. The Fund invests as a limited partner, and normally would not be liable for the debts of an MLP beyond the amounts the Fund has contributed but it would not be shielded to the same extent that a shareholder of a corporation would be. In certain instances, creditors of an MLP would have the right to seek a return of capital that had been distributed to a limited partner. The right of an MLP's creditors would continue even after the Fund had sold its investment in the partnership. MLPs typically invest in real estate, oil and gas equipment leasing assets, but they also finance entertainment, research and development, and other projects. The Fund's investments in MLPs will be limited to no more than 25% of its assets in order for the Fund to meet the requirements necessary to qualify as a "regulated investment company" under the Internal Revenue Code of 1986, as amended. Distributions from an MLP may consist in part of a return of the amount originally invested, which would not be taxable to the extent the distributions do not exceed the investor's adjusted basis on its MLP interest. These reductions in the Fund's adjusted tax basis in the MLP securities will increase the amount of gain (or decrease the amount of loss) recognized by the Fund on a subsequent sale of the securities. MLPs holding credit-related investments are subject to interest rate risk and the risk of default on payment obligations by debt issuers. MLPs that concentrate in a particular industry or a particular geographic region are subject to risks associated with such industry or region.

■ Real Estate Investment Trusts ("REITs") Risk. REITs or other real estate-related securities are subject to the risks associated with direct ownership of real estate, including, among other risks: adverse developments affecting the real estate industry; declines in real property values; changes in interest rates; risks related to general and local economic conditions; defaults by mortgagors or other borrowers and tenants; lack of availability of mortgage funds or financing; increases in property taxes and other operating expenses; overbuilding in their sector of the real estate market; fluctuations in rental income; extended vacancies of properties, especially during economic downturns; casualty or condemnation losses; changes in tax and regulatory requirements; losses due to environmental liabilities; and governmental actions, such as changes to tax laws, zoning regulations or environmental regulations. All REITs are dependent on management skills, are subject to heavy cash flow dependency or self-liquidation and generally are not diversified. Regardless of where a REIT is organized or traded, its performance may be affected significantly by events in the region where its properties are located. Equity REITs are affected by the changes in the value of the properties owned by the trust. Mortgage REITs are affected by the quality of the credit extended. Equity, mortgage and hybrid REITs may not be diversified with regard to the types of tenants, may not be diversified with regard to the geographic locations of the properties, and are subject to cash flow dependency and defaults by borrowers , and any domestic REIT could fail to qualify for tax-free "pass-through" of distributed net income and net realized gains under the Internal Revenue Code, or to maintain its exemption from registration under the Investment Company Act . REITs typically incur fees that are separate from those incurred by the Fund. Accordingly, the Fund's investment in REITs will result in the layering of expenses such that shareholders will indirectly bear a proportionate share of the REITs' operating expenses, in addition to indirectly paying Fund expenses. The value of REIT common stock may decline when interest rates rise. REITs tend to be small- to mid-capitalization securities and, as such, are subject to the risks of investing in small- to mid-capitalization securities.

**Foreign Investing Risk**<br>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) greater volatility; (6) different government regulation and supervision of foreign banks, stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets. 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, depository, or their agents goes bankrupt. Additionally, in certain markets, the Fund may not receive timely payment for securities or other instruments it has delivered or receive delivery of securities paid for and may be subject to increased risk that the counterparty will fail to make payments or delivery when due or default completely. To the extent the Fund invests 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. The Fund's investment in a foreign issuer may subject the Fund to regulatory, political, currency, security, economic and other risks associated with that country.

There may be restrictions on the flow of international capital, including the possible seizure or nationalization of the securities issued by non-U.S. issuers held by the Fund. In addition, the repatriation of investment income, capital or the proceeds of sales of securities from certain of the countries may require advance government notification or authority, and if a deterioration occurs in a country's balance of payments, the country could impose temporary restrictions on foreign capital remittances. The Fund also could be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation, as well as by the application to it of other restrictions on investment. Global economic and financial markets have become increasingly interconnected and conditions (including recent volatility, terrorism, war and political instability) and events (including natural disasters) in one country, region or financial market may adversely impact issuers in a different country, region or financial market.

Securities of issuers traded on foreign exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. Trading suspensions may be applied from time to time to the securities of individual issuers for reasons specific to that issuer, or may be applied broadly by exchanges or governmental authorities in response to market events. In the event that the Fund holds material positions in such suspended securities, the Fund's ability to liquidate its positions or provide liquidity to investors may be compromised and the Fund could incur significant losses.

**Growth Companies Risk**<br>Growth companies are those that are expected to have the potential for above-average or rapid growth. Growth companies are expected to increase their earnings at a certain rate. When these expectations are not met or decrease, the prices of these stocks may decline, sometimes sharply, even if earnings showed an absolute increase. The Fund's investments in growth companies may be more sensitive to company earnings and more volatile than the market in general primarily because their stock prices are based heavily on future expectations. If an assessment of the prospects for a company's growth is incorrect, then the price of the company's stock may fall or not approach the value placed on it. Growth company stocks may lack the dividend yield that can cushion stock price declines in market downturns. Growth companies may have limited operating histories and greater business risks, and their potential for profitability may be dependent on regulatory approval of their products or regulatory developments affecting certain sectors, which could have an adverse

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impact upon growth companies' future growth and profitability. Different investment styles tend to shift in and out of favor, depending on market conditions and investor sentiment. The Fund's growth style could cause it to underperform funds that use a value or non-growth approach to investing or have a broader investment style.

**Hedging Risk**<br>The Fund may enter into hedging transactions with the intention of reducing or controlling risk. It is possible that hedging strategies will not be effective in controlling risk, due to unexpected non-correlation (or even positive correlation) between the hedging instrument and the position being hedged, increasing, rather than reducing, both risk and losses. To the extent that the Fund enters into hedging transactions, the hedges will not be static but rather will need to be continually adjusted based on a sub-advisor's assessment of market conditions, as well as the expected degree of non-correlation between the hedges and the portfolio being hedged. The success of the Fund's hedging strategies will depend on a sub-advisor's ability to implement such strategies efficiently and cost-effectively, as well as on the accuracy of a sub-advisor's judgments concerning the hedging positions to be acquired by the Fund. A counterparty to a hedging transaction may be unable to honor its financial obligation to the Fund. In addition, a sub-advisor may be unable to close the transaction at the time it would like or at the price it believes the security is currently worth. The Fund may not, in general, attempt to hedge all market or other risks inherent in the Fund's investments, and may hedge certain risks only partially, if at all. Certain risks, either in respect of particular investments or in respect of the Fund's overall portfolio, may not be hedged, particularly if doing so is economically unattractive. As a result, various directional market risks may remain unhedged. Gains or losses from positions in hedging instruments may be much greater than the instrument's original cost. If the Fund uses a hedging instrument at the wrong time or judges the market conditions incorrectly, or the hedged instrument does not correlate to the risk sought to be hedged, the hedge might be unsuccessful. The use of hedges may fail to mitigate risks, reduce the Fund's return, or create a loss. In addition, hedges, even when successful in mitigating risk, may not prevent the Fund from experiencing losses on its investments. Hedging instruments may also reduce or eliminate gains that may otherwise have been available had the Fund not used the hedging instruments. When hedging is combined with leverage, the Fund risks losses that are multiplied by the degree of leverage used.

**Interest Rate Risk**<br>Investments in fixed-income securities or derivatives that are influenced by interest rates are subject to interest rate risk. Generally, the value of investments with interest rate risk, such as fixed-income securities or derivatives, will move in the opposite direction as movements in interest rates. For example, the value of the Fund's fixed-income investments or derivatives typically will fall when interest rates rise. Factors including central bank monetary policy, rising inflation rates, and changes in general economic conditions may cause interest rates to rise, which could cause the value of the Fund's investments to decline. Additionally, the value of the income-oriented equity securities that pay dividends may decline when interest rates rise, as rising interest rates can reduce companies' profitability and their ability to pay dividends. Interest rates may rise, perhaps significantly and/or rapidly, potentially resulting in substantial losses to the Fund. Fixed-income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than fixed-income securities with shorter durations. Rising interest rates may cause the value of the Fund's investments in investments with longer durations and terms to maturity to decline, which may adversely affect the value of the Fund. For example, if a bond has a duration of eight years, a 1% increase in interest rates could be expected to result in an 8% decrease in the value of the bond. Yields of fixed-income securities will fluctuate over time. 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 U.S. and foreign issuers. To the extent the Fund holds an investment with a negative interest rate to maturity, the Fund may generate a negative return on that investment. 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 Fund is exposed to such interest rates.

**Investment Risk**<br>An investment in the Fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund should not be relied upon as a complete investment program. The share price of the Fund fluctuates, which means that when you sell your shares of the Fund, they could be worth less than what you paid for them. Therefore, you may lose money by investing in the Fund.

**Issuer** **Risk**<br>The value of, and/or the return generated by, a security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets. When the issuer of a security implements strategic initiatives, including mergers, acquisitions and dispositions, there is the risk that the market response to such initiatives will cause the share price of the issuer's securities to fall. An individual security may be more volatile, and may perform differently, than the market as a whole.

**Large-Capitalization Companies Risk**<br>The securities of large market capitalization companies may underperform other segments of the market, in some cases for extended periods of time, because such companies may be less responsive to competitive challenges and opportunities, such as changes in technology and consumer tastes, and, at times, such companies may be out of favor with investors. Large market capitalization companies generally are expected to be less volatile than companies with smaller market capitalizations. However, large market capitalization companies may be unable to attain the high growth rates of successful smaller companies, especially during periods of economic expansion, and may instead focus their competitive efforts on maintaining or expanding their market share.

**Leverage Risk**<br>The Fund's use of derivative instruments may have the economic effect of financial leverage. Financial leverage magnifies the exposure to the movement in prices of an asset or class of assets underlying a derivative instrument and may result in increased volatility, which means that the Fund will have the potential for greater losses than if the Fund does 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 any increase or decrease in the Fund's exposure to an asset or class of assets and may cause the Fund's NAV per share to be volatile. The use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet any required asset segregation requirements. In addition, the costs that the Fund pays to engage in these practices are additional costs borne by the Fund and could reduce or eliminate any net investment profits. There can be no assurance that the Fund's use of leverage will be successful. The Fund may experience leverage risk in connection with investments in derivatives because its investments in derivatives may be purchased with a fraction of the assets that would be needed to purchase the securities directly, so that the remainder of the assets may be invested in other investments. Such investments may have the effect of leveraging the Fund because the Fund may experience gains or losses not only on its investments in derivatives, but also on the investments purchased with the remainder of the assets. If the value of the Fund's investments in derivatives is increasing, this could be offset by declining values of the Fund's other investments. Conversely, it is possible that the rise in the value of the Fund's non-derivative investments could be offset by a decline in the value of the Fund's investments in derivatives. In either scenario, the Fund may experience losses. In a market where the value of the Fund's investments in derivatives is declining and the value of its other investments is declining, the Fund may experience substantial losses.

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**Liquidity Risk**<br>The Fund is susceptible to the risk that certain investments held by the Fund may have limited marketability, be subject to restrictions on sale, be difficult or impossible to purchase or sell at favorable times or prices or become less liquid in response to market developments or adverse credit events that may affect issuers or guarantors of a security. Market prices for such instruments may be volatile. During periods of substantial market volatility, an investment or even an entire market segment may become illiquid, sometimes abruptly, which can adversely affect the Fund's ability to limit losses. When there is little or no active trading market for specific types of securities, it can become more difficult to purchase or sell the securities at or near their perceived value. As a result, the 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. An inability to sell a portfolio position can adversely affect the Fund's NAV or prevent the Fund from being able to take advantage of other investment opportunities. The Fund could lose money if it is unable to dispose of an investment at a time that is most beneficial to the Fund. Unexpected redemptions or redemptions by a few large investors in the Fund may force the Fund to sell certain investments at unfavorable prices to meet redemption requests or other cash needs and may have a significant adverse effect on the Fund's NAV per share and remaining Fund shareholders. This could negatively affect the Fund's ability to buy or sell debt securities and increase the related volatility and trading costs. The Fund may lose money if it is forced to sell certain investments at unfavorable prices to meet redemption requests or other cash needs. For example, liquidity risk may be magnified in rising interest rate environments in the event of higher-than-normal redemption rates. Judgment plays a greater role in pricing illiquid investments than in investments with more active markets.

**Market Risk**<br>The Fund is 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 the 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 asset classes 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 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. Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to a particular sector or geographic region, continue to recur. The value of a security may decline due to adverse issuer-specific conditions or general market conditions unrelated to a particular issuer, such as real or perceived adverse geopolitical, regulatory, market, economic or other developments that may cause broad changes in market value, changes in the general outlook for corporate earnings, changes in interest, currency or inflation rates, lack of liquidity in the markets, public perceptions concerning these developments or adverse market sentiment generally. The value of a security may also decline due to factors that affect a particular industry or industries, such as tariffs, labor shortages or increased production costs and competitive conditions within an industry. 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, which may adversely affect the value of your investment. Such market disruptions have caused, and may continue to cause, broad changes in market value, negative public perceptions concerning these developments, a reduction in the willingness and ability of some lenders to extend credit, difficulties for some borrowers in obtaining financing on attractive terms, if at all, and adverse investor sentiment or publicity. Changes in value may be temporary or may last for extended periods. Adverse market events may also lead to increased shareholder redemptions, which could cause the Fund to sell investments at an inopportune time to meet redemption requests by shareholders and may increase the Fund's portfolio turnover, which could increase the costs that the Fund incurs and lower the Fund's performance. Even when securities markets perform well, there is no assurance that the investments held by the Fund will increase in value along with the broader market.

Policy changes by the U.S. government and/or Federal Reserve and political events within the U.S. and abroad, such as changes in the U.S. presidential administration and Congress, 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 which could result in a default on the government's obligations, may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasi-governmental organizations. Global economies and financial markets are becoming increasingly interconnected, which increases the possibility of many markets being affected by events in a single country or events affecting a single or small number of issuers.

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. In certain cases, an exchange or market may close or issue trading halts on either specific securities or even the entire market, which may result in the Fund being, among other things, unable to buy or sell certain securities or financial instruments or accurately price its investments. These fluctuations in securities prices could be a sustained trend or a drastic movement. 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.

■ Recent Market Events Risk. 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 Fund may be increased. An outbreak of infectious respiratory illness caused by a novel coronavirus, known as COVID-19, was first detected in December 2019 and has subsequently spread globally. The impact of the outbreak has been rapidly evolving and the transmission of various variants of COVID-19, as well as the efforts to contain their spread, have resulted, and may continue to result, in significant disruptions to business operations, supply chains and customer activity, including lower consumer demand, travel restrictions and closed borders, as well as general concern and uncertainty that has negatively affected the global economy. Any resurgence of COVID-19, a variant or other significant viruses could negatively impact the Fund and may exacerbate other pre-existing political, social and economic risks in certain countries or globally. This has caused, and could cause in the future, significant volatility in global financial markets. These events may last for an extended period of time and could adversely affect the economies of many nations or the entire global economy, individual issuers, and global capital, securities and capital markets in ways that cannot necessarily be foreseen, including through a sustained economic downturn or recession, or the reduction of liquidity. Deteriorating economic fundamentals may, in turn, increase the risk of default or insolvency of particular issuers, negatively impact market value, increase market volatility, cause credit spreads to widen, and reduce liquidity. <br> Although interest rates were unusually low in recent years in the U.S. and abroad, in 2022, the U.S. Federal Reserve and certain foreign central banks began to raise interest rates as part of their efforts to address rising inflation. In addition, ongoing inflation pressures from tight labor markets and supply chain disruptions could continue to cause an increase in interest rates and/or negatively impact companies. It is difficult to accurately predict the pace at which

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interest rates may increase, or the timing, frequency or magnitude of any such increases in interest rates. Additionally, various economic and political factors, such as rising inflation rates, could cause the Federal Reserve or other foreign banks to change their approach in the future as such actions may result in an economic slowdown both in the U.S. and abroad. Unexpected increases in interest rates could lead to market volatility or reduce liquidity in certain sectors of the market. Deteriorating economic fundamentals may, in turn, increase the risk of default or insolvency of particular issuers, negatively impact market value, increase market volatility, cause credit spreads to widen, and reduce liquidity. Unexpected increases in interest rates could lead to market volatility or reduce liquidity in certain sectors of the market. Also, regulators have expressed concern that rate increases may cause investors to sell fixed income securities faster than the market can absorb them, contributing to price volatility. Over the longer term, rising interest rates may present a greater risk than has historically been the case due to the prior 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. However, because there is little precedent for this situation, it is difficult to predict the impact on various markets of significant rate increases or other significant policy changes.<br>Some countries, including the U.S., have in recent years adopted more protectionist trade policies. Slowing global economic growth; risks associated with the aftermath of the United Kingdom's departure from the European Union and the trade agreement between the United Kingdom and the European Union; the risks associated with ongoing trade negotiations with China; the possibility of changes to some international trade agreements; tensions, war, or open conflict between nations, such as between Russia and Ukraine or in eastern Asia; political or economic dysfunction within some nations, including major producers of oil; and dramatic changes in commodity and currency prices could affect the economies of many nations, including the United States, in ways that cannot necessarily be foreseen at the present time. <br>Russia's military invasion of Ukraine beginning in February 2022, the responses and sanctions by the United States and other countries, and the potential for wider conflict have had, and could continue to have, severe adverse effects on regional and global economies and could further increase volatility and uncertainty in the financial markets and the prices of various commodities. The United States and other countries have imposed, and continue to impose, broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that provide military or economic support to Russia. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences, or cyberattacks on governments, companies or individuals, have substantially decreased the value and liquidity of most Russian securities and could impact securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Fund has exposure to Russian investments or investments in other countries affected by the invasion, the Fund's ability to price, buy, sell, receive or deliver such investments may be impaired. In addition, any exposure that the Fund may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund's investments. The extent and duration of military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict. These events have resulted, and could continue to result, in significant market disruptions, including in certain industries or sectors such as the oil and natural gas markets, and may further strain global supply chains and negatively affect inflation and global growth. These and any related events could significantly impact the Fund's performance and the value of an investment in the Fund beyond any direct exposure the Fund may have to Russian issuers or issuers in other countries affected by the invasion.<br>High public debt in the U.S. and other countries creates ongoing systemic and market risks and policymaking uncertainty. There is no assurance that the U.S. Congress will act to raise the nation's debt ceiling; a failure to do so could cause market turmoil and substantial investment risks that cannot now be fully predicted. Unexpected political, regulatory and diplomatic events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial markets and the broader economy.<br>China's economy, which has been sustained in recent years largely through a debt-financed housing boom, may be approaching the limits of that strategy and may experience a significant slowdown as a result of debt that cannot be repaid. Due to the size of China's economy, such a slowdown could impact a number of other countries.<br>Economists and others have expressed increasing concern about the potential effects of global climate change on property and security values. Impacts from climate change may include significant risks to global financial assets and economic growth. A rise in sea levels, an increase in powerful windstorms and/or a climate-driven increase in sea levels or flooding could cause coastal properties to lose value or become unmarketable altogether. 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. Regulatory changes and divestment movements tied to concerns about climate change could adversely affect the value of certain land and the viability of industries whose activities or products are seen as accelerating climate change. These losses could adversely affect, among others, corporate issuers and mortgage lenders, the value of mortgage-backed securities, the bonds of municipalities that depend on tax or other revenues and tourist dollars generated by affected properties, and insurers of the property and/or of corporate, municipal or mortgage-backed securities.

**Mid-Capitalization Companies Risk**<br>Investments in mid-capitalization companies generally involve greater risks and the possibility of greater price volatility, which at times can be rapid and unpredictable, than investments in larger, more established companies. Mid-capitalization companies often have narrower commercial markets and more limited operating history, product lines, and managerial and financial resources than larger, more established companies. As a result, performance can be more volatile and they may face greater risk of business failure, which could increase the volatility of the Fund's portfolio. Generally, the smaller the company size, the greater these risks. Additionally, mid-capitalization companies may have less market liquidity than large-capitalization companies, and they can be sensitive to changes in overall economic conditions, interest rates, borrowing costs and earnings.

**Mortgage-Backed and Mortgage-Related Securities Risk**

Investments in mortgage-backed and mortgage-related securities are influenced by the factors affecting the assets underlying the securities or the housing market in general. These securities tend to be more sensitive to changes in interest rates than other types of debt securities. Investments in mortgage-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 and extension risk, callable securities risk, valuation risk, liquidity risk, and restricted securities risk. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain mortgage-backed and mortgage-related securities. If interest rates fall, the rate of prepayments tends to increase as borrowers are motivated to pay off debt and refinance at new lower rates. When mortgages and other obligations are prepaid and when securities are called, the Fund may have to reinvest in securities with a lower yield or fail to recover additional amounts (i.e., premiums) paid for securities with higher interest rates, resulting in an unexpected capital loss and/or a decrease in the amount of dividends and yield. Because prepayments increase when interest rates fall, the prices of mortgage-backed and mortgage-related securities do not increase as much as other fixed-income securities when interest rates fall. When interest rates rise, borrowers are less likely to prepay their mortgage. A decreased rate of prepayments lengthens the expected maturity of mortgage-backed and mortgage-related securities. Therefore, the prices of mortgage-backed and mortgage-related securities may decrease more than prices of other fixed-income securities when interest rates rise. Rising interest rates tend to extend the duration of these securities, making them more sensitive to changes in interest rates. Rising interest rates also may increase the risk of default by borrowers. As a result, in a period of

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rising interest rates, the Fund may experience additional volatility and losses. A decline in the credit quality of and defaults by the issuers of mortgage-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. In addition, certain mortgage-backed and mortgage-related securities may include securities backed by pools of loans made to "subprime" borrowers or borrowers with blemished credit histories; the risk of defaults is generally higher in the case of mortgage pools that include such subprime mortgages.

■ Collateralized Mortgage Obligation ("CMOs") Risk. A 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 Ginnie Mae, Freddie Mac or Fannie Mae, 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. In addition, CMOs typically will be issued in a variety of classes or series, which have different maturities and are retired in sequence. Privately issued CMOs are not U.S. government securities nor are they supported in any way by any U.S. government agency or instrumentality. In the event of a default by an issuer of a CMO, there is no assurance that the collateral securing such CMO will be sufficient to pay principal and interest. It is possible that there will be limited opportunities for trading CMOs in the over-the-counter market, the depth and liquidity of which will vary from time to time.

■ Commercial Mortgage-Backed Securities ("CMBS") Risk. CMBS include securities that reflect an interest in, and are secured by, mortgage loans on commercial real property. CMBS are generally multi-class or pass-through securities backed by a mortgage loan or a pool of mortgage loans secured by commercial property, such as office buildings, retail space and shopping malls, hotels, industrial or warehouse properties, mixed use properties or multi-family apartment buildings. 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 issued by non-government entities may offer higher yields than those issued by government entities, but also may be subject to greater volatility than government issues. CMBS may react differently to changes in interest rates than other bonds and the prices of CMBS may reflect adverse economic and market conditions. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of CMBS. 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. Commercial mortgage loans generally lack standardized terms, which may complicate their structure and tend to have shorter maturities than residential mortgage loans. Commercial properties themselves tend to be unique and are more difficult to value than single-family residential properties. In addition, commercial properties, particularly industrial and warehouse properties, are subject to environmental risks and the burdens and costs of compliance with environmental laws and regulations.

■ Dollar Rolls Risk. A Fund may enter into dollar roll transactions, in which a Fund sells a mortgage-backed or other security for settlement on one date and buys back a substantially similar security (but not the same security) for settlement at a later date. A Fund gives up the principal and interest payments on the security, but may invest the sale proceeds, during the "roll period." When a Fund enters into a dollar roll transaction, any fluctuation in the market value of the security transferred or the securities in which the sales proceeds are invested can affect the market value of the Fund's assets, and therefore, the Fund's NAV. Dollar roll transactions may sometimes be considered to be the practical equivalent of borrowing and constitute a form of leverage. Dollar roll transactions also involve the risk that the market value of the securities a Fund is required to deliver may decline below the agreed upon repurchase price of those securities. In addition, in the event that a Fund's counterparty becomes insolvent or otherwise unable or unwilling to perform its obligations, the Fund's use of the proceeds may become restricted pending a determination as to whether to enforce the Fund's obligation to purchase the substantially similar securities.

■ Mortgage Pass-Through Securities Risk. Mortgage pass-through securities provide for the "pass through" of the monthly payments made by individual borrowers on their residential or commercial mortgage loans, net of any fees by the security issuer and guarantor, as applicable, to the holder of the security. Small movements in interest rates, both increases and decreases, may quickly and significantly affect the value of certain mortgage pass-through securities. Certain of the mortgage pass-through securities in which a Fund may invest in are issued or guaranteed by agencies or instrumentalities of the U.S. government but are not backed by the full faith and credit of the U.S. government. There can be no assurance that the U.S. government would provide financial support to its agencies or instrumentalities where it was not obligated to do so, which can cause a Fund to lose money or underperform. The risks of investing in mortgage pass-through securities include, among others, interest rate risk, credit risk, prepayment risk and extension risk, as well as risks associated with the nature of the underlying mortgage assets and the servicing of those assets.

**Multiple Sub-Advisor Risk**

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

**Other Investment Companies Risk**<br>To the extent that the Fund invests in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses, including, for example, advisory and administrative fees, charged by those investment companies in addition to the Fund's direct fees and expenses. If the Fund invests in other investment companies, the 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 the Fund's shareholders when distributed to them. The Fund 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 the Fund's investment may decline, adversely affecting the Fund's performance. To the extent the Fund invests in other investment companies that invest in equity securities, fixed-income securities and/or foreign securities, or that track an index, the 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. The Fund will be subject to the risks associated with investments in those companies, including but not limited to the following:

■ Government Money Market Funds Risk. Investments in government money market funds are subject to interest rate risk, credit risk, and market risk. The SEC has proposed rule amendments that, if adopted, among other changes, may require government money market funds to convert to a floating net asset value per share in a negative interest rate environment.

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**Preferred Stock Risk**<br>Preferred stocks, which are a form of hybrid security (i.e., a security with both debt and equity characteristics), may pay fixed or adjustable rates of return. If interest rates rise, the dividend on preferred stocks may be less attractive, causing the price of preferred stocks to decline. Preferred stocks may have mandatory sinking fund provisions, as well as provisions for their call or redemption prior to maturity, which can have a negative effect on their prices when interest rates decline. Preferred stocks may be less liquid than common stocks and, unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred stocks generally are payable at the discretion of an issuer and after required payments to bond holders. In certain situations, an issuer may call or redeem its preferred stock or convert it to common stock. The market prices of preferred stocks are generally more sensitive to actual or perceived changes in the issuer's financial condition or prospects than are the prices of debt securities. Issuers may threaten preferred stockholders with the cancellation of all dividends and liquidation preference rights in an attempt to force their conversion to less secure common stock. Certain preferred stocks are equity securities because they do not constitute a liability of the issuer and therefore do not offer the same degree of protection of capital or continuation of income as debt securities. The rights of preferred stock on distribution of a corporation 's assets in the event of its liquidation are generally subordinated to the rights associated with a corporation 's debt securities. Therefore, in the event of an issuer 's bankruptcy, there is substantial risk that there will be nothing left to pay preferred stockholders after payments, if any, to bondholders have been made. Preferred stocks may also be subject to credit risk.

**Prepayment and Extension Risk**<br>When interest rates fall, borrowers will generally repay the loans that underlie certain debt securities, especially mortgage-related and other types of asset-backed securities, more quickly than expected, causing the issuer of the security to repay the principal prior to the security 's expected maturity date. This could also occur if a debt security is called or otherwise converted or redeemed before maturity. If this occurs, the 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 the Fund buys those securities at a premium, accelerated prepayments on those securities could cause the 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. The rate of prepayments tends to increase as interest rates fall, which could cause the average maturity of the portfolio to shorten. Prepayments could also create capital gains tax liability in some instances. 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, increase the risk of default and delayed payment, heighten interest rate risk and increase the potential for a decline in its price. In addition, as a consequence of a decrease in prepayments, the amount of principal available to the Fund for investment would be reduced. If the Fund's investments are locked in at a lower interest rate for a longer period of time, the Fund may be unable to capitalize on securities with higher interest rates or wider spreads.

**Sector Risk**<br>Sector risk is the risk associated with the Fund holding a significant amount of investments in similar businesses, which would be similarly affected by particular economic or market events that may, in certain circumstances, cause the value of the equity and debt securities of companies in a particular sector of the market to change. To the extent the Fund has substantial holdings within a particular sector, the risks to the Fund associated with that sector increase. In addition, when the Fund focuses its investments in certain sectors of the economy, its performance may be driven largely by sector performance and could ﬂuctuate more widely than if the Fund were invested more evenly across sectors. Individual sectors may be more volatile, and may perform differently, than the broader market. The businesses that constitute a sector may all react the same way to economic, political or regulatory events. The Fund's performance could also be affected if the sectors do not perform as expected. The lack of exposure to one or more sectors may adversely affect performance. As the Fund's portfolio changes over time, the Fund's exposure to a particular sector may become higher or lower.

■ Financials Sector Risk. Financial services companies are subject to extensive governmental regulation, which may limit both the amounts and types of loans and other financial commitments they can make, the interest rates and fees they can charge, the scope of their activities, the prices they can charge and the amount of capital they must maintain. Profitability is largely dependent on the availability and cost of capital funds and can fluctuate significantly when interest rates change or due to increased competition. In addition, deterioration of the credit markets generally may cause an adverse impact in a broad range of markets, including U.S. and international credit and interbank money markets generally, thereby affecting a wide range of financial institutions and markets. Certain events in the Financials sector may cause an unusually high degree of volatility in the financial markets, both domestic and foreign, and cause certain financial services companies to incur large losses. Securities of financial services companies may experience a dramatic decline in value when such companies experience substantial declines in the valuations of their assets, take action to raise capital (such as the issuance of debt or equity securities), or cease operations. Credit losses resulting from financial difficulties of borrowers and financial losses associated with investment activities can negatively impact the sector. Insurance companies may be subject to severe price competition. Adverse economic, business or political developments could adversely affect financial institutions engaged in mortgage finance or other lending or investing activities directly or indirectly connected to the value of real estate.

**Secured, Partially Secured and Unsecured Obligation Risk**<br>Debt obligations may be secured, partially secured or unsecured. Debt obligations that are secured with specific collateral of the borrowing company provide the holder with a claim on that collateral in the event that the borrower does not pay scheduled interest or principal that is senior to that held by any unsecured creditors, subordinated debt holders and stockholders of the borrower. Obligations that are fully secured offer the Fund more protection than a partially secured or unsecured obligation in the event of such non-payment of scheduled interest or principal.

Interests in secured obligations have the benefit of collateral and, typically, of restrictive covenants limiting the ability of the borrower to further encumber its assets. However, there is no assurance that the liquidation of collateral from a secured obligation would satisfy the borrower's obligation, or that the collateral can be liquidated. Furthermore, there is a risk that the value of any collateral securing an obligation in which the Fund has an interest may decline and that the collateral may not be sufficient to cover the amount owed on the obligation. In most loan agreements there is no formal requirement to pledge additional collateral. In the event the borrower defaults, the Fund's access to the collateral may be limited or delayed by bankruptcy or other insolvency laws. In addition, the collateral securing the obligation may not be recognized for a variety of reasons, including the failure to make required filings by lenders, trustees or other responsible parties and, as a result, the Fund may not have priority over other creditors as anticipated. Further, in the event of a default, second lien secured loans will generally be paid only if the value of the collateral exceeds the amount of the borrower's obligations to the first lien secured lenders, and the remaining collateral may not be sufficient to cover the full amount owed on the loan in which the Fund has an interest.

If an obligation in which the Fund invests, such as a secured loan, is foreclosed, the Fund could become owner, in whole or in part, of any collateral, which could include, among other assets, real estate or other real or personal property, and as a creditor would likely bear its pro rata costs and liabilities associated with owning and holding or disposing of the collateral. The collateral may be difficult to sell, and the Fund would bear the risk that the collateral may decline in value while the Fund is holding it.

Some obligations in which the Fund may invest are only partially-secured or are unsecured. Unsecured debt, including senior unsecured and subordinated debt, will not be secured by any collateral, and will be effectively subordinated to a borrower's secured indebtedness (to the extent of the collateral securing such indebtedness). With respect to unsecured obligations, the Fund lacks any collateral on which to foreclose to satisfy its claim in whole or in part. Such instruments generally have greater price volatility than that of fully secured holdings and may be less liquid. There is a possibility that originators will not be

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able to sell participations in unsecured bank loans. Because loan participations typically represent direct participation, together with other parties, in a loan to a corporate borrower, through which the Fund would become a part lender, difficulty on the part of originators in selling participations could limit the number of parties participating and create greater credit risk exposure for the holders of such loans.

**Securities Lending Risk**<br>The Fund may lend its portfolio securities to brokers, dealers and financial institutions in order to obtain additional income. Borrowers of the Fund's securities provide collateral either in the form of cash, which the Fund reinvests in securities or in the form of non-cash collateral consisting of securities issued or guaranteed by the U.S. government or one of its agencies or instrumentalities. The Fund will be responsible for the risks associated with the investment of cash collateral, including any collateral invested in an affiliated government money market fund. The Fund may lose money on its investment of cash collateral or may fail to earn sufficient income on its investment to cover its payment to the borrower of a pre-negotiated fee or "rebate" for the use of that cash collateral in connection with the loan. The Fund could also lose money due to a decline in the value of non-cash collateral. In addition, delays may occur in the recovery of securities from borrowers, which could interfere with the Fund's ability to vote proxies or to settle transactions or could result in increased costs. Moreover, if the borrower becomes subject to insolvency or similar proceedings, the Fund could incur delays in its ability to enforce its rights in its collateral. There also is a risk that a borrower may default on its obligation to return loaned securities at a time when the value of the Fund's collateral is inadequate. Although the Fund's securities lending agent may indemnify the Fund against that risk, it is also possible that the securities lending agent will be unable to satisfy its indemnification obligations. In any case in which the loaned securities are not returned to the Fund before an ex-dividend date, whether or not due to a default by the borrower, the payment in lieu of the dividend that the Fund receives from the securities' borrower would not be treated as a dividend for federal income tax purposes and thus would not qualify for treatment as "qualified dividend income" (as described under "Distributions and Taxes – Taxes" below).

**Securities Selection Risk**<br>Securities selected for the Fund may decline substantially in value or may not perform to expectations. Judgments about the attractiveness, value and anticipated price movements of a security or asset class may be incorrect, and there is no guarantee that securities will perform as anticipated. It may not be possible to predict, or to hedge against, a widening in the yield spread of the securities selected for the Fund. This could result in the Fund's underperformance compared to other funds with similar investment objectives.

**Segregated Assets Risk**<br>In connection with certain transactions that may give rise to future payment obligations, the Fund may be required to maintain a segregated amount of, or otherwise earmark, cash or liquid securities to cover the position. Segregated or earmarked securities cannot be sold while the position or transaction they are covering is outstanding, unless they are replaced with other securities of equal value. There is the possibility that the segregation or earmarking of a large percentage of the Fund's assets may, in some circumstances, limit the Fund's ability to take advantage of investment opportunities or meet redemption requests. In addition, the need to segregate cash or other liquid securities could limit the Fund's ability to pursue other opportunities as they arise.

**U.S. Government Securities and Government-Sponsored Enterprises Risk**<br>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 securities issued by 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 GNMA; (ii) supported by the right of the issuer to borrow from the U.S. Treasury, such as those of the Federal Home Loan Bank, the Federal Farm Credit Banks, or the Tennessee Valley Authority; (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 Fund holds securities of such issuer, 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.

**Valuation Risk**<br>This is the risk that a security may be valued at a price different from the price at which it can be sold. This risk may be especially pronounced for investments that may be illiquid or may become illiquid and for securities that trade in relatively thin markets and/or markets that experience extreme volatility. The valuation of the Fund's 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 and applicable accounting protocols may require the valuation of these investments using more subjective methods, such as fair-value methodologies. Using fair value methodologies to price investments may result in a value that is different from an investment's most recent closing price and from the prices used by others for the same investment. Investors who purchase or redeem Fund shares on days when the Fund is holding fair-valued securities may receive fewer or more shares, or lower or higher redemption proceeds, than they would have received if the securities had not been fair valued or a different valuation methodology had been used. 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 the Fund determines its NAV.

**Value Stocks Risk**<br>Investments in value stocks are subject to the risk that their intrinsic or full value may never be realized by the market, that a stock judged to be undervalued may be appropriately priced, or that their prices may decline. This may result in the value stocks' prices remaining undervalued for extended periods of time and they may not ever realize their intrinsic or full value. While the Fund's investments in value stocks seek to limit potential downside price risk over time, value stock prices still may decline substantially. In addition, the Fund may produce more modest gains as a trade-off for this potentially lower risk. Different investment styles tend to shift in and out of favor, depending on market conditions and investor sentiment. The Fund's performance also may be affected adversely if value stocks become unpopular with, or lose favor among, investors. The Fund's value style could cause it to underperform funds that use a growth or non-value approach to investing or have a broader investment style.

**Variable and Floating Rate Securities Risk**<br>The coupons on variable and floating rate securities in which the Fund may invest are not fixed and may fluctuate based upon changes in market rates. Variable and floating rate 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 short-term interest rates, the coupons on variable and floating rate securities typically increase. 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. Thus, investing in

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variable and floating rate instruments generally allows less opportunity for capital appreciation and depreciation than investing in instruments with a fixed interest rate. Variable and floating rate securities are less effective than fixed rate securities at locking in a particular yield and may be subject to credit risk. Certain types of floating rate instruments may also be subject to greater liquidity risk than other debt securities.

Additional Information About Performance Benchmark

The Fund's performance is compared to the S&P 500 Index.

■ The S&P 500 Index is an unmanaged index of common stocks publicly traded in the United States.

The "S&P 500 Index" is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates ("SPDJI"), and has been licensed for use by the Fund. Standard & Poor's<sup>®</sup> and S&P<sup>®</sup> are registered trademarks of Standard & Poor's Financial Services LLC, a division of S&P Global ("S&P"); Dow Jones<sup>®</sup> is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

Fund Management

The Manager

**AMERICAN BEACON ADVISORS, INC. (the "Manager")** serves as the Manager and administrator of the Fund. The Manager, located at 220 East Las Colinas Boulevard, Suite 1200, Irving, Texas 75039, is an indirect wholly-owned subsidiary of Resolute Investment Holdings, LLC, which is owned primarily by Kelso Investment Associates VIII, L.P., KEP VI, LLC and Estancia Capital Partners L.P.

The Manager was organized in 1986 to provide investment management, advisory, and administrative services. The Manager is registered as an investment adviser under the Advisers Act. The Manager is not registered as a CPO with respect to the Fund in reliance on the delayed compliance date provided by No-Action Letter 12-38 of the Division of Swaps Dealer and Intermediary Oversight ("Division") of the CFTC. Pursuant to this letter, the Manager is not required to register as a CPO, or rely on an exemption from registration, until six months from the date the Division issues revised guidance on the application of the calculation of the de minimis thresholds in the context of the CPO exclusion in CFTC Regulation 4.5. In addition, on behalf of the Fund, the Manager has filed a notice claiming the CFTC Regulation 4.5 exclusion from CPO registration under the Commodity Exchange Act. The Manager is also exempt from registration as a commodity trading advisor under CFTC Regulation 4.14(a)(8) with respect to the Fund.

For the fiscal year ended October 31, 2022, the Fund paid aggregate management fees to the Manager and investment advisory fees to the sub-advisors of 0.33% of the Fund's average daily net assets, net of any waivers and recoupments of the management and sub-advisor fees.

As compensation for services provided by the Manager in connection with securities lending activities conducted by the Fund, the lending Fund pays to the Manager, with respect to cash collateral posted by borrowers, a fee of 10% of the net monthly interest income (the gross interest income earned by the investment of cash collateral, less the amount paid to borrowers and related expenses) from such activities and, with respect to loan fees paid by borrowers when a borrower posts collateral other than cash, a fee up to 10% of such loan fees. The SEC has granted exemptive relief that permits the Fund to invest cash collateral received from securities lending transactions in shares of one or more private or registered investment companies managed by the Manager.

As of the date of this PPM, the Fund intends to engage in securities lending activities.

A discussion of the Board's consideration and approval of the Management Agreement between the Fund and the Manager and the Investment Advisory Agreement among American Beacon Institutional Funds Trust (the "Trust"), on behalf of the Fund, each sub-advisor and the Manager is available in the Fund's Annual Report for the fiscal year ended October 31, 2022 and the Fund's Semi-Annual Report for the period ended April 30, 2022, as applicable.

Kirk L. Brown, Paul Cavazos, and Colin J. Hamer, employees of the Manager, are jointly and primarily responsible for the Manager's selection and oversight of the sub-advisors, including reviewing the sub-advisors' performance and allocating the Fund's assets among the Manager and the sub-advisors, as applicable, and investing the portion of Fund assets that the sub-advisors determine should be allocated to short-term investments. The Fund's SAI provides additional information about the members of the portfolio management team, including other accounts they manage, their ownership in the Fund and their compensation. Certain biographical information regarding Mr. Brown, Mr. Cavazos, and Mr. Hamer is set forth below:

Kirk L. Brown is Senior Portfolio Manager, and has served on the portfolio management team since February 1994. Mr. Brown is a CFA® charterholder.

Paul B. Cavazos is Chief Investment Officer and joined the Manager and has served on the portfolio management team since 2016. Prior to joining the Manager, Mr. Cavazos was Chief Investment Officer and Assistant Treasurer of DTE Energy from 2007 to 2016.

Colin J. Hamer is Portfolio Manager, and has served on the portfolio management team since 2019. Mr. Hamer has served on the asset management team since January 2015, is a CFA® charterholder, and has earned the Chartered Alternative Investment Analyst (CAIA) designation. Prior to joining the Manager, Mr. Hamer worked at Fidelity Investments in various investment-related roles from 2008 to 2014.

The Sub-Advisors

Set forth below is a brief description of the sub-advisor and the portfolio managers with joint and primary responsibility for the day-to-day management of the Fund. The Fund's SAI provides additional information about the portfolio managers, including other accounts they manage, their ownership in the Fund they manage and their compensation.

**ARISTOTLE CAPITAL MANAGEMENT, LLC** ("Aristotle"), located at 11100 Santa Monica Blvd., Suite 1700, Los Angeles, California 90025 is a professional investment advisory firm providing advisory services to institutions and high net worth individuals. Aristotle had assets under management of $48.6 billion as of December 31, 2022. Aristotle is a limited liability company majority owned by employees with the remaining portion owned by the RCB Acquisition Company, LLC. RCB Acquisition Company is a holding company whose purpose is to hold Richard S. Hollander's (Aristotle's Chairman) ownership interest in Aristotle.

***Howard Gleicher*** is CEO and Chief Investment Officer of Aristotle. Having begun in the investment industry in 1985, Howard heads the firm and leads the investment effort. Prior to founding Aristotle in 2010, Howard was co-founder, CEO and Chief Investment Officer at Metropolitan West Capital Management, LLC. Howard's prior investment-related experience includes serving as Principal, Portfolio Manager and Investment Policy Committee member at Palley-Needelman Asset Management, Inc., and Equity Portfolio Manager at Pacific Investment Management Company (PIMCO). Howard earned his Bachelor of Science and Master of Science degrees in Electrical Engineering from Stanford University, and his MBA from Harvard University. He is a CFA<sup>®</sup> charterholder.

***Gregory D. Padilla*** is a member of the Aristotle Capital research team and a veteran of the investment industry. Prior to joining Aristotle Capital in 2014, Greg was a Managing Director and Portfolio Manager at Vinik Asset Management, LP and Tradewinds Global Investors, LLC. While at Tradewinds, Greg was a key member of the All-Cap Equity strategy, the Global All-Cap strategy and Global Natural Resource strategy. During his tenure, these three strategies

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received Lipper awards for top ranking in their respective categories. Greg earned his Bachelor of Science degree in Finance from Arizona State University and his MBA with honors and concentration in investments and financial markets from the University of Southern California. He is a CFA<sup>®</sup> charterholder.

**BARROW, HANLEY, MEWHINNEY & STRAUSS, LLC (''Barrow Hanley'')**, 2200 Ross Avenue, 31st Floor, Dallas, Texas 75201, is an SEC-registered investment adviser that began conducting business in 1979. Perpetual Limited, an Australian financial services company, holds a 75% interest in Barrow Hanley. As of December 31, 2022, Barrow Hanley had assets under management of approximately $43.7 billion. Barrow Hanley manages client assets on a team basis for their equity and fixed income strategies.

***Mark Giambrone,*** Mr. Giambrone joined Barrow Hanley in 1999. Prior to joining Barrow Hanley, Mr. Giambrone served as a portfolio consultant at HOLT Value Associates. During his career, he has also served as a senior auditor/tax specialist for KPMG Peat Marwick and Ernst & Young Kenneth Leventhal. Mr. Giambrone graduated summa cum laude from Indiana University with a BS in Business and received an MBA from the University of Chicago.

***Mark Luchsinger, CFA*** ***\**** Mr. Luchsinger joined Barrow Hanley in 1997. He was appointed Co-Head of Fixed Income, along with Scott McDonald, in 2017. Mr. Luchsinger serves as a portfolio manager, specializing in investment grade and high yield corporate bond strategies and is the lead portfolio manager for our Core and High Quality Core strategies. He is a member of the CFA charterholder. During his investment career, Mr. Luchsinger has served as Chief Investment Officer for Great American Reserve Insurance Company. He began his career as a credit analyst at Scor Reinsurance Company. In addition, Mr. Luchsinger spent 10 years in fixed income sales at First Boston Corporation. He earned a BBA from Bowling Green State University.

***J*** ***ustin Martin, CFA*** Mr. Martin joined Barrow Hanley in 2004 and has served as a credit analyst in fixed income since 2009. Prior to his work as a credit analyst, Mr. Martin's work at the firm included market and index research and portfolio analysis. Mr. Martin earned a BBA in Finance from Southern Methodist University. He is a CFA charterholder.

***J. Scott McDonald, CFA*** Mr. McDonald joined Barrow Hanley in 1995. He was appointed Co-Head of Fixed Income, along with Mark Luchsinger, in 2017. Mr. McDonald also serves as the lead portfolio manager for our Long Duration strategies, specializing in corporate and government bonds. He is a CFA charterholder. During his investment career, Mr. McDonald previously served as senior vice president and portfolio manager at Life Partners Group, Inc. Prior to that, he was a credit supervisor and lending officer for Chase Bank of Texas. Mr. McDonald received an MBA from the University of Texas and a BBA from Southern Methodist University.

***Deborah A. Petruzzelli*** Ms. Petruzzelli joined Barrow Hanley in 2003. She serves as our structured securities portfolio manager for mortgage-backed, asset-backed, and commercial mortgage-backed securities. She is also an analyst for structured securities. During her investment career, Ms. Petruzzelli has served as managing director/senior portfolio manager for Victory Capital Management, Inc., where she was responsible for the management of ABS, CMBS, and whole-loan sectors for all client portfolios. She also had an active role in that firm's development of a core strategy, leveraging the firm's convertible equity management strengths. Prior to joining Victory, Ms. Petruzzelli worked for McDonald & Company Securities, Inc., as senior vice president for ABS syndication and traded ABS, CMO, and MBS. She earned a BSBA in Business Administration from Bowling Green State University.

***Matthew Routh, CFA*** Mr. Routh joined Barrow Hanley in 2013 and has served as a credit analyst since 2016. Prior to his work as a credit analyst, Mr. Routh's work at the firm included portfolio analysis. Mr. Routh began his investment career in 2008 at Callan Associates, where he worked in fixed income research. He is a CFA charterholder. Mr. Routh earned a BA in Economics from the University of Texas and an MA in Economics from the University of California, Santa Barbara.

\* Effective April 30, 2023, Mr. Luchsinger will retire as a Portfolio Manager for the Fund. Therefore, effective April 30, 2023, all references to Mr. Luchsinger are deleted.

All of Barrow Hanley's equity portfolio managers and analysts work as a team for the purposes of generating and researching investment ideas. Portfolio managers have broad research responsibilities, although they focus their efforts on particular sectors. Analysts have specific sector/industry assignments for more specialized, in-depth research.

Barrow Hanley manages its fixed income portion of the Fund using a team approach, with investment strategy decisions resulting from a consensus of its fixed income professionals —portfolio managers and dedicated research analysts. Portfolio managers are generalists, but each also has specific responsibilities for strategic focus on particular aspects of the marketplace and the portfolio structure strategy. Fixed income research responsibilities are divided among the team members, each specializing in areas in which they have particular expertise and interest. Individual bond selection decisions are also consistently made across all portfolios having similar investment objectives.

**BRANDYWINE GLOBAL INVESTMENT MANAGEMENT, LLC ("Brandywine Global'')**, 1735 Market Street, Suite 1800, Philadelphia, PA 19103, is a professional investment advisory firm founded in 1986. Brandywine Global is a wholly owned indirect subsidiary of Franklin Resources, Inc. As of December 31, 2022, Brandywine Global had assets under management totaling approximately $55.4 billion.

***David F. Hoffman***, CFA, Managing Director & Portfolio Manager David is co-lead portfolio manager for Brandywine Global's Global Fixed Income and related strategies. He joined the Firm in 1995. Previously, David was president of Hoffman Capital, a global financial futures investment firm (1991-1995); head of fixed income investments at Columbus Circle Investors (1983-1990); senior vice president and portfolio manager at INA Capital Management (1979-1982), and fixed income portfolio manager at Provident National Bank (1975-1979). David is a CFA® charterholder and earned a B.A. in Art History from Williams College. He is a member of the Firm's Executive Board, currently serving as the Board's chair.

***Jack P. McIntyre***, CFA, Portfolio Manager Jack is a portfolio manager for Brandywine Global's Global Fixed Income and related strategies. He joined the Firm in 1998. Previously, he held positions as market strategist with McCarthy, Crisanti & Maffei, Inc. (1995-1998); senior fixed income analyst with Technical Data, a division of Thomson Financial Services (1992-1995); quantitative associate with Brown Brothers Harriman & Co. (1990), and investment analyst with the Public Employee Retirement Administration of Massachusetts (1987-1989). Jack is a CFA® charterholder and earned an M.B.A. in Finance from the Leonard N. Stern Graduate School of Business at New York University and a B.B.A. in Finance from the University of Massachusetts, Amherst.

***Anujeet Sareen***, CFA, Portfolio Manager Anujeet Sareen is a portfolio manager for Brandywine Global's Global Fixed Income and related strategies. Prior to joining the Firm in 2016, Anujeet was a managing director of global fixed income and a global macro strategist, as well as chair of the Currency Strategy Group at Wellington Management in Boston. Over his 22-year career at Wellington (1994-2016), he held a variety of roles while cultivating extensive fixed income and currency management experience. Anujeet is a CFA® charterholder and earned a B.A. in Computer Science from Brown University.

***Tracy Chen***, CFA, CAIA, Portfolio Manager Tracy is a portfolio manager for Brandywine Global and leads the Firm's structured credit investing, including investments in U.S. and European RMBS, CMBS, and ABS, as well as CLO and other structured products. Prior to joining the Firm in 2008, she was with UBS Investment Bank as Director of Structured Products (2006-2008); GMAC Mortgage Group (2002-2006), focusing on mortgage whole loan pricing and trading; and Deloitte Consulting (2001-2002). Tracy earned her MBA with a concentration in Finance from the University of North Carolina at Chapel Hill. She also holds an M.A. in American Studies and a B.A. from University of Electronic Science & Technology of China. Tracy is a CFA® charterholder and a CAIA charterholder.

**26** **Private Placement Memorandum** – Fund Management

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***Brian Kloss***, JD, CPA, Portfolio Manager Brian is a portfolio manager for Brandywine Global and leads the Firm's credit research capabilities bringing over 20 years of high yield and distressed debt experience. Prior to joining the Firm in 2009, Brian was co-portfolio manager at Dreman Value Management, LLC (2007-2009); high yield analyst/trader at Gartmore Global Investments (2002-2007); high yield and equity portfolio manager and general analyst at Penn Capital Management, Ltd. (2000-2002); an analyst with The Concord Advisory Group, Ltd. (1998-2000); and an international tax consultant with Deloitte & Touche LLP (1995-1998). Brian earned his J.D. from Villanova School of Law and graduated summa cum laude with a B.S. in Accounting from University of Scranton. He is a member of the New Jersey and Pennsylvania Bar Associations and is a Pennsylvania Certified Public Accountant.

**HOTCHKIS AND WILEY CAPITAL MANAGEMENT, LLC ("Hotchkis")**, 601 South Figueroa Street, 39th Floor, Los Angeles, California 90017-5704, is a limited liability company, the primary members of which are HWCap Holdings, a limited liability company with members who are current and former employees of Hotchkis, and Stephens-H&W, LLC, a limited liability company whose primary member is SF Holding Corp., which is a diversified holding company. Hotchkis' predecessor entity was organized as an investment advisor in 1980. As of December 31, 2022, Hotchkis had approximately $28.3 billion in investment company and other portfolio assets under management.

In addition to the Fund, Hotchkis manages institutional separate accounts and is the advisor and sub-advisor to other mutual funds. The investment process employed is the same for similar accounts, including the Fund and is team-based utilizing primarily in-house, fundamental research. The investment research staff is organized by industry and sector and supports all of the accounts managed in each of Hotchkis' investment strategies. Portfolio managers for each strategy ensure that the best thinking of the investment team is reflected in the `'target portfolios.'' Investment ideas for the Fund are generated by Hotchkis' investment team. Although Hochkis' portion of the Fund is managed by Hotchkis' investment team, Hotchkis has identified the portfolio managers with the most significant responsibility for Hotchkis' portion of the Fund's assets. This list does not include all members of the investment team. Hotchkis' investment team has managed Hotchkis' portion of the Fund since 2017. George Davis, Judd Peters, Scott McBride, and Patricia McKenna participate in the investment research review and decision making process for the Fund. Mr. McBride, Mr. Peters and Mr. Davis coordinate the day-to-day management of the Fund:

***Mr. Davis***, Principal, Portfolio Manager and Executive Chairman, joined Hotchkis' investment team in 1988. Mr. Davis has been a Portfolio Manager since 1989 and Chief Executive Officer of Hotchkis from 2001 to 2021. In October 2021, Mr. Davis transitioned to Executive Chairman. In his role as portfolio manager, Mr. Davis plays an integral part in the investment research review and decision-making process. He coordinates the day-to-day management of large cap fundamental value, large cap diversified value, mid cap value and value opportunities portfolios, represents these strategies to current and prospective clients, as well as provides expertise and insight into the capital goods and financials sectors. Prior to joining the firm, Mr. Davis was an assistant to the senior partner of RCM Capital Management. He began his career in equity research with internships at Cramer, Rosenthal & McGlynn and Fidelity Management & Research. Mr. Davis received his BA in Economics and History and MBA from Stanford University.

***Mr. Peters***, Portfolio Manager, joined Hotchkis' investment team in 1999 and has been a Portfolio Manager since 2017. In his role as portfolio manager, Mr. Peters plays an integral part in the investment research review and decision-making process as well as coordinates the day-to-day management of large cap fundamental value, large cap diversified value, and small cap diversified value portfolios. He also provides expertise and insight into the capital goods, energy/utilities and technology sectors. Prior to joining the firm, Mr. Peters was an analyst in the corporate finance department of an investment banking firm. Mr. Peters, a CFA® charterholder, received his BA in Mathematics and a BS in Biochemistry from University of California, San Diego.

***Mr. McBride***, Portfolio Manager and Chief Executive Officer, joined Hotchkis' investment team in 2001. He has been a Portfolio Manager since 2017, and was named President of Hotchkis in January 2016. In October 2021, he became Chief Executive Officer. In his role as portfolio manager, Mr. McBride plays an integral part in the investment research review and decision-making process as well as coordinates the day-to-day management of large cap fundamental value, large cap diversified value and global value portfolios. He also provides expertise and insight into the consumer, financials, healthcare and technology sectors. Prior to joining the firm, Mr. McBride was an associate consultant with Deloitte Consulting and worked as an investment marketing analyst with Fidelity Investments. Mr. McBride, a CFA® charterholder, received his BA in Economics from Georgetown University and MBA from Columbia University.

***Ms. McKenna***, Principal and Portfolio Manager, joined Hotchkis' investment team in 1995 and has been a Principal since 2001. In her role as portfolio manager, Ms. McKenna plays an integral part in the investment research review and decision-making process and represents the large cap fundamental value and large cap diversified value strategies to current and prospective clients. She also provides expertise and insight into the consumer and healthcare sectors. Prior to joining the firm, Ms. McKenna was an equity analyst at Trust Company of the West. Before entering the field of investment management, she worked for five years in corporate finance at Bankers Trust and then at Fieldstone Private Capital Group. Ms. McKenna began her career as a forensic accountant in 1983. Ms. McKenna, a CFA® charterholder, received her BA in Economics with distinction from Stanford University and MBA from Harvard Business School.

**LAZARD ASSET MANAGEMENT LLC (''Lazard'')**, 30 Rockefeller Plaza, 55th floor, New York, New York 10112, an investment advisor, is a subsidiary of Lazard Frères & Co. LLC, a New York limited liability company. Lazard and its affiliates provided investment management services to client discretionary accounts with assets totaling approximately $183.9 billion as of December 31, 2022.

The following individuals comprise Lazard's International Equity management team, which is responsible for the day-to-day management of a portion of the Fund. Responsibility is shared equally among each member of the team.

***Michael G. Fry*** is a Managing Director and Portfolio Manager/Analyst on various international equity teams. From 1995 to 2005, Mr. Fry held several positions at UBS Global Asset Management, including Lead Portfolio Manager and Head of Global Equity Portfolio Management, Global Head of Equity Research and Head of Australian Equities. He joined Lazard in 2005 and has worked in the investment field since 1981. He has co-managed Lazard's portion of the Fund since inception.

***Michael A. Bennett*** is a Managing Director of Lazard and a Portfolio Manager/Analyst on various international equity teams. He joined Lazard in 1992 and has worked in the investment field since 1986. Mr. Bennett has co-managed Lazard's portion of the Fund since inception.

***Michael S. Powers*** is a Managing Director of Lazard and a Portfolio Manager/Analyst on various international equity teams. He began working in the investment field in 1990 when he joined Lazard and has co-managed Lazard's portion of the Fund since inception.

***Giles Edwards*** is a Portfolio Manager/Analyst on various international equity teams as of January 2020. Prior to joining the investment teams, he was a Research Analyst with a background in media, automotive, and services. Prior to joining Lazard in 2008, Giles was a Management Accountant at BSkyB, completing his CIMA qualifications. He has a BA (Hons) in Politics and Economics from the University of Newcastle upon Tyne.

***Paul Selvey-Clinton*** is a Portfolio Manager/Analyst on the European Equity team. Prior to joining Lazard in 2014, Mr. Selvey-Clinton worked in a predominantly European focused fund at SAC Global Investors. Before this he was an Equity Analyst and Partner at Occitan Capital. Mr. Selvey-Clinton began working in the investment field in 2006 as an Equity Analyst at Brevan Howard Asset Management. Mr. Selvey-Clinton has a BA (Hons) in Geography from Keble College, Oxford University.

**Private Placement Memorandum** – Fund Management**27**

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**WCM INVESTMENT MANAGEMENT, LLC ("WCM")**, located at 281 Brooks Street, Laguna Beach, California 92651, an investment adviser registered with the SEC, is focused on global equity investing in industry leading companies that possess growing competitive advantages; corporate cultures emphasizing strong, quality and experienced management; low or no debt; and attractive relative valuations. WCM is an independent asset manager controlled entirely by its employees. As of December 31, 2022, WCM had $71.7 billion in assets under management.

***Sanjay Ayer*** is Portfolio Manager and Business Analyst. Mr. Ayer has served as a Portfolio Manager and Business Analyst for WCM since 2007. His primary responsibilities are portfolio management and equity research for WCM's global, fundamental growth strategies.

***Paul R. Black*** is President, Co-CEO and Portfolio Manager. Mr. Black joined WCM in 1989 and has served as WCM's President, Co-CEO and Portfolio Manager since December 2004. Mr. Black is a member of WCM's Investment Strategy Group ("ISG") and his primary responsibilities include portfolio management and equity research.

***Peter J. Hunkel*** ***\**** is Portfolio Manager and Business Analyst. Mr. Hunkel has been a portfolio manager of the focused international growth strategy since December 2004. Mr. Hunkel is a member of the firm's ISG and his primary responsibilities include portfolio management and equity research. Prior to joining WCM, Mr. Hunkel served as Chief Operating Officer and Senior Portfolio Manager at Centurion Alliance from 2000 to 2007.

***Michael B. Trigg*** is Portfolio Manager and Business Analyst. Mr. Trigg has served as a Portfolio Manager and Business Analyst for WCM since March 2006. Mr. Trigg is a member of the firm's ISG and his primary responsibilities include portfolio management and equity research.

***Jon Tringale*** joined WCM in 2015; his primary responsibility is portfolio management for WCM's global, fundamental growth strategies. Since he began his investment career in 2008, Jon's experience includes positions as an Analyst, on the trading floor with Wedbush Securities, and as Vice President at Gerson Lehrman Group. Jon earned his B.S. (cum laude) in Finance from San Jose State University (California).

\* Effective March 31, 2023, Mr. Hunkel will retire as a Portfolio Manager for the Fund. Therefore, effective March 31, 2023, all references to Mr. Hunkel are deleted.

Valuation of Shares

The price of the Fund's shares is based on its NAV. The Fund's NAV per share is computed by adding total assets, subtracting all of the Fund's liabilities, and dividing the result by the total number of shares outstanding.

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

Equity securities and certain derivative instruments that are traded on an exchange are valued based on market value. Certain derivative instruments (other than short-term securities) usually are valued on the basis of prices provided by a pricing service. The price of debt securities generally is determined using pricing services or quotes obtained from broker/dealers who may consider a number of inputs and factors, such as comparable characteristics, yield curve, credit spreads, estimated default rates, coupon rates, underlying collateral and estimated cash flow. Investments in other mutual funds are valued at the closing NAV per share of the mutual funds on the day of valuation. Equity securities, including shares of closed-end funds and ETFs, are valued at the last sale price or official closing price.

The valuation of securities traded on foreign markets and certain fixed-income securities will generally be based on prices determined as of the earlier closing time of the markets on which they primarily trade, unless a significant event has occurred. When the Fund holds securities or other assets that are denominated in a foreign currency, the exchange rates as of 4:00 p.m. Eastern Time will normally be used.

Rule 2a-5 under the Investment Company Act (the "Valuation Rule") establishes requirements for determining fair value in good faith for purposes of the Investment Company Act, including related oversight and reporting requirements. The rule also defines when market quotations are "readily available" for purposes of the Investment Company Act, the threshold for determining whether a Fund must fair value a security.

The Valuation Rule permits the Fund's board to designate the Fund's primary investment adviser 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 registered investment company's board receives the information it needs to oversee the investment adviser's fair value determinations. The Board has designated the Manager as valuation designee under the Valuation Rule to perform fair value functions in accordance with the requirements of the Valuation Rule.

Securities may be valued at fair value, as determined in good faith and pursuant to the Manager's procedures. For example, fair value pricing will be used when market quotations are not readily available or reliable, as determined by the Manager, such as for fixed income securities and 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 the Fund occurs after the close of a related exchange but before the determination of the Fund's NAV per share, 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. Securities may be fair valued as a result of significant events occurring after the close of the foreign markets in which it invests. In addition, the Fund may invest in illiquid securities requiring these procedures.

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 the Fund's fair valuation procedures.

About Your Investment

Purchase and Redemption of Shares

*Eligibility*

To subscribe for shares, each prospective investor generally will be required to certify that it is, among other things, (i) a "U.S. Person," as such term is defined in Rule 902(k) of Regulation S under the Securities Act of 1933, as amended (the "Securities Act"), (ii) an "accredited investor," as such term is defined in Rule 501(a) of Regulation D under the Securities Act; and (iii) a "qualified purchaser" as defined in Section 2(a)(51) of the Investment Company Act. Each

**28** **Private Placement Memorandum** – About Your Investment

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prospective investor generally will be required to complete and return various subscription documents to the Fund and the Manager for acceptance, which will be designed to provide the Fund, and the Manager and their respective affiliates and agents with important information about each prospective investor. To comply with U.S. anti-money laundering regulations and the anti-money laundering laws and regulations of other applicable jurisdictions, the Manager may require additional information as necessary and as provided in the subscription documents. Notwithstanding the foregoing, the Manager may decline to admit any prospective investor or reject all or any portion of any purchase in its discretion. Subject to applicable legal requirements, the Manager may waive or modify any provisions of the subscription documents or any of the foregoing eligibility requirements in any particular case.

*Minimum Initial Investment*

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| | | | |
|:---|:---|:---|:---|
| | **New Account** | **Existing Account** |  |
| <br>**Share Class** | **Minimum** | **Purchase/Redemption Minimum by** **check/ACH/Exchange** | **Purchase/Redemption Minimum by** **Wire** |
| AAL | $100000 | $50 |  |

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*Opening an Account*

Beneficial interests in the Fund are issued solely in private placement transactions which do not involve any "public offering" within the meaning of Section 4(a)(2) of the Securities Act pursuant to Regulation D thereunder (including, without limitation, Rule 506(b)). Investment in the Fund may only be made by organizations or entities that are "accredited investors" within the meaning of Regulation D of the Securities Act and that are also "qualified purchasers" as defined in Section 2(a)(51) of the 1940 Act ("Eligible Investors"). The Fund has adopted policies to limit the transfer of shares, which may occur only pursuant to Board authorization, and only to persons who are eligible investors.

To purchase shares, each prospective investor may be required to review, complete, execute and return to the Fund, various subscription documents, including, without limitation, the Subscription Agreement, IRS Form W-9 and various other subscription documentation (the "Subscription Documents"). The Subscription Documents will be designed to provide the Fund, the Manager and/or their respective affiliates with important information about the prospective investor.<br>The execution and delivery of the Subscription Documents by a prospective investor will constitute a binding and irrevocable offer to purchase shares as set forth therein and an agreement to hold such offer open until it is either accepted or rejected by the Manager. Only the Manager may accept purchases, and the Manager has the sole discretion to refuse to accept any purchase (or any portion thereof) for any reason. The Fund, the Manager and their respective affiliates will be entitled to rely (without investigation) on the accuracy of the representations and warranties of each prospective investor. A prospective investor that cannot or would prefer not to make such representations or warranties, or to accept the consequences of making such representations and warranties, should not invest in the Fund. The Fund, the Manager and their respective affiliates may, but under no circumstances are obligated to, require additional evidence that a prospective investor meets the eligibility requirements of the Fund at any time prior to acceptance of a prospective investor's purchase. Prospective investors will not be obligated to supply any information so requested, but the Manager may reject a purchase from a prospective investor if such investor or any other person fails to supply such information with respect to such investor.

A prospective investor should not assume that its purchase has been accepted until the Manager has provided a confirmation of the purchase of shares. If a purchase is not accepted, in whole or in part, then the purchase, or part thereof, as applicable, will be returned to the prospective investor without interest thereon.

An existing shareholder may, in the discretion of the Manager, make additional purchases from time to time upon request and subject to applicable law. By making an additional purchase, each shareholder generally will be deemed to represent to the Fund that all of the representations and warranties made by such shareholder in the Subscription Documents remain true, correct and complete in all respects. The Manager may accept or reject an additional purchase in the Manager's discretion.

The Manager may modify or grant exceptions to any of the foregoing policies and procedures in its discretion, subject to applicable legal requirements.

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| |
|:---|
| Complete the Subscription Documents and send them to: |
| &nbsp;&nbsp;&nbsp; **Regular Mail to:**<br>American Beacon Advisors, Inc.<br>Attn: Operations<br>220 East Las Colinas Blvd.<br>Suite 1200<br>Irving, Texas 75039<br>(or you may fax to)<br>(817) 391-6076 |

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To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, you will be asked for information that will allow the Fund or your financial institution to identify you. Non-public corporations and other entities may be required to provide articles of incorporation, trust or partnership agreements, and taxpayer identification numbers on the account or other documentation. The Fund is required by law to reject your new account application if the required identifying information is not provided.

The Fund reserves the right to liquidate a shareholder's account at the current day's NAV per share and remit proceeds via check if the Fund or a financial institution is unable to verify the shareholder's identity within three days of account opening.

*Purchase Policies*

Shares of the Fund are offered and purchase orders are typically accepted until 4:00 p.m. Eastern Time or the close of the NYSE (whichever comes first) on each day on which the NYSE is open for business. If a purchase order is received by the Fund in good order prior to the Fund's deadline, the purchase price will be the NAV per share next determined on that day. A purchase order is considered to be received in good order when it complies with all of the Fund's applicable policies. If a purchase order is received in good order after the applicable deadline, the purchase price will be the NAV per share of the following day that the Fund is open for business. Shares of the Fund will only be issued against full payment, as described more fully in this PPM and SAI.

Fund shares may be purchased only in U.S. States and Territories in which they can be legally sold. Prospective investors should inquire as to whether Fund shares are available for offer and sale in their jurisdiction. The Fund reserves the right to refuse purchases if, in the judgment of the Fund, the transaction would adversely affect the Fund and its shareholders. The Fund has the right to reject any purchase order or cease offering any or all classes of shares at any

**Private Placement Memorandum** – About Your Investment**29**

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time. The Fund reserves the right to require payment by wire. Checks to purchase shares are accepted subject to collection at full face value in U.S. funds and must be drawn in U.S. dollars on a U.S. bank. The Fund will not accept ''starter'' checks, credit card checks, money orders, cashier's checks, or third-party checks. If your payment is not received and collected, your purchase may be canceled and you could be liable for any losses or fees the Fund or the Manager has incurred.

If your payment is not received and collected, your purchase may be canceled and you could be liable for any losses or fees the Fund or the Manager has incurred.

Under applicable anti-money laundering regulations and other federal regulations, purchase orders may be suspended, restricted or canceled and the monies may be withheld.

Please refer to the section titled ''Frequent Trading and Market Timing'' for information on the Fund's policies regarding frequent purchases, redemptions, and exchanges.

*Redemption Policies*

The redemption price will be the Fund's NAV per share next determined after a redemption request is received in good order. In order to receive the redemption price calculated on a particular redemption date, redemption requests must be received in good order by 4:00 p.m. Eastern Time or by the close of the NYSE (whichever comes first) on such date.

Wire proceeds from redemption requests received in good order by 4:00 p.m. Eastern Time or by the close of the NYSE (whichever comes first) on a redemption date generally will be transmitted to shareholders within one business day after the redemption date or as soon as practical thereafter. In any event, proceeds from a redemption request will typically be transmitted to a shareholder by no later than seven days after the receipt of a redemption request in good order. Delivery of proceeds from shares purchased by check, ACH, or pre-authorized automatic investment may be delayed until the funds have cleared, which may take up to ten days.

Although the Fund intends to redeem shares by paying out available cash, cash generated by selling portfolio holdings (including cash equivalent portfolio holdings) or funds borrowed through the interfund credit facility, or from a bank line of credit, in stressed market conditions and other appropriate circumstances, the Fund reserves the right to pay the redemption price in whole or in part by borrowing funds from external parties or distributing of securities or other assets held by the Fund. To the extent that the Fund redeems its shares in this manner, the shareholder assumes the risk of a subsequent change in the market value of those securities, the cost of liquidating the securities and the possibility of a lack of a liquid market for those securities.

The Manager will provide applicable Investors with prior notice of any proposed in-kind distribution. If an Investor will, upon the advice of counsel, determine that there is a reasonable likelihood that any distribution in kind of an asset would cause such Investor to be in violation of any law, regulation or governmental order to which such Investor is subject or otherwise materially adversely affect such Investor, then the Investor will notify the Manager in writing prior to such distribution and the Manager will use reasonable efforts to dispose on behalf of such Investor, as promptly as practicable under the existing circumstances (including after giving effect to contractual or other restrictions on transfer that may be applicable to the Fund), of all or such portion of such assets at such price and on such terms as the Manager determines in good faith to be then achievable and to distribute to such Investor instead the net proceeds from such disposition. The Investor will bear all of the expenses associated with any such disposition.

Notwithstanding the foregoing provisions relating to redemptions, the Manager may, as applicable, (a) suspend or postpone distributions, (b) suspend or postpone the payment or distribution of any redemption proceeds to Investors, (c) suspend the determination of the Fund's NAV, and/or (d) suspend the right of any Investor to submit a redemption notice: (i) during the existence of any state of affairs which, in the opinion of the Manager, makes the disposition of the Fund's investments impractical or prejudicial to the Investors, or where such state of affairs, in the opinion of the Manager, makes the determination of the price or value of the Fund's investments impractical or prejudicial to the Investors; (ii) where any redemptions or distributions would potentially result in a violation of any applicable law or regulation; (iii) if any securities exchange or organized interdealer market on which a significant portion of the Fund's assets is regularly traded or quoted is closed (otherwise than for holidays) or trading thereon has been restricted or suspended, or markets for swaps or other derivative instruments, commodities, securities or other similar instruments are otherwise sufficiently disrupted that determining the Fund's NAV would, in the opinion of the Manager, be difficult or unreliable and/or liquidation of some or all of those investments could not be effected without losses to the Fund; (iv) if the Manager determines that disposal of any assets of the Fund or other transactions involving the sale, transfer or delivery of funds or other assets is not reasonably practicable without being detrimental to the Units of the redeeming or remaining Investors; (v) if the Manager determines that extraordinary circumstances exist that make redemptions or payments impracticable under existing economic or market conditions or other conditions relating to the Fund (such as simultaneous redemption requests that, in the aggregate, cannot be fulfilled without material adverse effects on the Fund or Investors); or (vi) if any event has occurred that calls for the dissolution of the Fund. The Manager will provide notice to each Investor of any suspension referenced above. Upon determination by the Manager that the condition or conditions giving rise to a suspension has ceased to exist and no other condition under which suspension is authorized exists, such suspension will be lifted and notice will be sent to the Investors regarding the lifting of such suspension and the next date as of which Investors will be permitted to redeem or submit redemption notices.

In addition, the Manager may, by written notice to an Investor, suspend the payment of redemption proceeds if the Manager deems it necessary to do so to comply with applicable anti-money laundering laws, rules or regulations applicable to the Fund, the Manager or any of the Fund's service providers.

Redemption proceeds will be mailed to the account of record or transmitted to commercial bank designated on the account application form.

Supporting documents may be required for redemptions by estates, trusts, guardianships, custodians, corporations, and welfare, pension and profit sharing plans. Redemption requests must also include authorized signature(s) of all persons required to sign for the account. Call 1-800-658-5811 for instructions.

To protect the Fund and your account from fraud, a Medallion signature guarantee is required for redemption orders:

■ with a request to send the proceeds to an address or commercial bank account other than the address or commercial bank account designated on the account application, or

■ for an account whose address has changed within the last 30 days if proceeds are sent by check.

The Fund only accepts Medallion signature guarantees, which may be obtained at participating banks, broker-dealers and credit unions. A notary public cannot provide a signature guarantee. Call 1-800-658-5811 for instructions and further assistance.

General Policies

If a shareholder's account balance falls below $100,000 the shareholder may be asked to increase the balance. If the account balance remains below the applicable minimum account balance after 45 days, the Fund reserves the right, upon 30 days' advance written notice, to close the account and send the proceeds to the shareholder. The Fund reserves the authority to modify minimum account balances in its discretion.

**30** **Private Placement Memorandum** – About Your Investment

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An Automated Clearing House ("ACH") privilege allows electronic transfer from a checking or savings account into a direct account with the Fund. The ACH privilege may not be used for initial purchases but may be used for subsequent purchases, and for redemptions. Purchases of Fund shares by ACH are subject to a limit of $2,000 per day. The Fund reserves the right to waive such limit in its sole discretion.

ACH privileges must be requested on the account application, or may be established on an existing account by submitting a request in writing to the Fund. Validated signatures from all shareholders of record for the account are required on the written request. See details below regarding signature validations. Such privileges apply unless and until the Fund receives written instructions from all shareholders of record canceling such privileges. Changes of bank account information must also be made in writing with validated signatures. The Fund reserves the right to amend, suspend or discontinue the ACH privilege at any time without prior notice. The ACH privilege does not apply to shares held in broker "street name" accounts or in other omnibus accounts.

When a signature validation is called for, a Medallion signature guarantee or Signature Validation Program ("SVP") stamp may be required. A Medallion signature guarantee is intended to provide signature validation for transactions considered financial in nature, and an SVP stamp is intended to provide signature validation for transactions non-financial in nature. A Medallion signature guarantee or SVP stamp may be obtained from a domestic bank or trust company, broker, dealer, clearing agency, savings association or other financial institution which is participating in a Medallion program or SVP recognized by the Securities Transfer Association. The Fund may reject a Medallion signature guarantee or SVP stamp. Shareholders should call 1-800-658-5811 for additional details regarding the Fund's signature guarantee requirements.

The following policies apply to instructions you may provide to the Fund by telephone:

■ The Fund, its officers, trustees, employees, or agents are not responsible for the authenticity of instructions provided by telephone, nor for any loss, liability, cost or expense incurred for acting on them.

■ The Fund employs procedures reasonably designed to confirm that instructions communicated by telephone are genuine.

■ Due to the volume of calls or other unusual circumstances, telephone redemptions may be difficult to implement during certain time periods.

The Fund reserves the right to:

■ liquidate a shareholder's account at the current day's NAV and remit proceeds via check if the Fund or a financial institution is unable to verify the shareholder's identity within three business days of account opening,

■ seek reimbursement from the shareholder for any related loss incurred by the Fund if payment for the purchase of Fund shares by check does not clear the shareholder's bank, and

■ reject a purchase order and seek reimbursement from the shareholder for any related loss incurred by the Fund if funds are not received by the applicable wire deadline.

Escheatment

Certain state escheatment laws may require the Fund to turn over your mutual fund account to the state listed in your account registration as abandoned property unless you contact the Fund. Many states have added ''inactivity'' or the absence of **customer initiated contact** as a component of their rules and guidelines for the escheatment of unclaimed property. These states consider property to be abandoned when there is no **shareholder** **initiated activity** on an account for at least three (3) to five (5) years.

Depending on the laws in your jurisdiction, customer initiated contact might be achieved by one of the following methods:

■ Send a letter to American Beacon Institutional Funds Trust via the United States Post Office,

■ Speak to a Customer Service Representative on the phone after you go through a security verification process. **For residents of certain states, contact** **cannot be made by phone but must be in writing ,** 

■ Cashing checks that are received and are made payable to the owner of the account.

The Fund, the Manager, and the Transfer Agent will not be liable to shareholders or their representatives for good faith compliance with escheatment laws. To learn more about the escheatment rules for your particular state, please contact your attorney or State Treasurer's and/or Controller's Offices.

Shareholders that reside in the state of Texas may designate a representative to receive escheatment notifications by completing and submitting a designation form that can be found on the website of the Texas Comptroller. While the designated representative does not have any rights to claim or access the shareholder's account or assets, the escheatment period will cease if the representative communicates knowledge of the shareholder's location and confirms that the shareholder has not abandoned his or her property. If a shareholder designates a representative to receive escheatment notifications, any escheatment notices will be delivered both to the shareholder and the designated representative. The completed designation form may be mailed to the below address.

Contact information:

American Beacon Institutional Funds Trust<br>P.O. Box 219643<br>Kansas City, MO 64121-9643<br>1-800-658-5811

Frequent Trading and Market Timing

Frequent trading by Fund shareholders poses risks to other shareholders in the Fund, including (i) the dilution of the Fund's NAV per share, (ii) an increase in the Fund's expenses, and (iii) interference with the portfolio managers' ability to execute efficient investment strategies. Frequent, short-term trading of Fund shares in an attempt to profit from day-to-day fluctuations in the Fund's NAV per share is known as market timing The Fund is designed as an investment vehicle exclusively for "accredited investors." Given the limitation on the types of shareholders who may invest in the Fund and the sophistication of such shareholders and the expected role the Fund will play helping to efficiently diversify their investment portfolios, the Fund's Board has not adopted policies and procedures to discourage frequent trading or short-term trading into and out of the Fund.

Distributions and Taxes

The Fund distributes most or all of its net earnings and realized gains, if any, each taxable year in the form of dividends from net investment income ("dividends") and distributions of realized net capital gains ("capital gain distributions") and net gains from foreign currency transactions (sometimes referred to below collectively as "other distributions") (and dividends and other distributions are sometimes referred to below collectively as "distributions"). Different tax treatment applies to different types of distributions (as described in the table below).

The Fund does not have a fixed dividend rate or guarantee that it will pay any distributions in any particular period.

**Private Placement Memorandum** – About Your Investment**31**

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*Options for Receiving Dividends and Other Distributions*

When you open your Fund account, you can specify on your application how you want to receive distributions (including dividends and other distributions). To change that option, you must notify the transfer agent. Unless you instruct otherwise in your account application, distributions payable to you by the Fund will be reinvested in additional shares of the Fund. There are three payment options available:

■ Reinvest All Distributions. You can elect to reinvest all distributions by the Fund in additional shares of the Fund.

■ Reinvest Only Some Distributions. You can elect to reinvest some types of distributions by the Fund in additional shares of the Fund while receiving the other types of distributions by the Fund by check or having them sent directly to your bank account by ACH ("in cash").

■ Receive All Distributions in Cash. You can elect to receive all distributions in cash.

If you invest directly with the Fund, any election to receive distributions payable by check will only apply to distributions totaling $10.00 or more. Any distribution by the Fund totaling less than $10.00 will be reinvested in Fund shares and will not be paid to you by check.

If you elect to receive a distribution by check and the U.S. Postal Service cannot deliver your check, or if your check remains uncashed for at least six months, the Fund reserves the right to reinvest the amount of your check, and to reinvest all subsequent distributions, in Fund shares at the NAV per share on the day of the reinvestment. Interest will not accrue on amounts represented by uncashed distribution or redemption checks.

*Taxes*

Fund distributions are taxable to shareholders other than tax-qualified retirement plans and accounts and other tax-exempt investors. However, the portion of the Fund's dividends derived from its investments in U.S. Government obligations, if any, is generally exempt from state and local income taxes. Fund dividends, except those that are "qualified dividend income" (as described below), are subject to federal income tax at the rates for ordinary income contained in the Internal Revenue Code. The following table outlines the typical status of transactions in taxable accounts:

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| | |
|:---|:---|
| **Type of Transaction** | **Federal Tax Status** |
| Dividends from net investment income\* | Ordinary income\*\* |
| Distributions of the excess of net short-term capital gain over net long-term capital loss\* | Ordinary income |
| Distributions of net gains from certain foreign currency transactions\* | Ordinary income |
| Distributions of the excess of net long-term capital gain over net short-term capital loss ("net capital gain")\* | Long-term capital gains |
| Redemptions or exchanges of shares owned for more than one year | Long-term capital gains or losses |
| Redemptions or exchanges of shares owned for one year or less | Net gains are taxed at the same rate as ordinary income; net losses are subject to special rules |

---

\* Whether reinvested or taken in cash.

\*\* Except for dividends that are attributable to ''qualified dividend income,'' if any.

To the extent distributions are attributable to net capital gain that the Fund recognizes, they are subject to a 15% maximum federal income tax rate for individual and certain other non-corporate shareholders (each, an ''individual'') (20% for individuals with taxable income exceeding certain thresholds, which are indexed for inflation annually), regardless of how long the shareholder held his or her Fund shares.

A portion of the dividends the Fund pays to individuals may be ''qualified dividend income'' (''QDI'') and thus eligible for the preferential rates mentioned above that apply to net capital gain. QDI is the aggregate of dividends the Fund receives on shares of most domestic corporations (excluding most distributions from REITs) and certain foreign corporations with respect to which the Fund satisfies certain holding period and other restrictions. To be eligible for those rates, a shareholder must meet similar restrictions with respect to his or her Fund shares.

A portion of the dividends the Fund pays may also be eligible for the dividends-received deduction allowed to corporations ("DRD"), subject to similar holding period and other restrictions, but the eligible portion may not exceed the aggregate dividends the Fund receives from domestic corporations only.

A shareholder may realize a taxable gain or loss when redeeming or exchanging shares. That gain or loss is treated as a short-term or long-term capital gain or loss, depending on how long the redeemed or exchanged shares were held. Any capital gain an individual shareholder recognizes on a redemption or exchange of Fund shares that have been held for more than one year will qualify for the 15% and 20% tax rates mentioned above.

A shareholder who wants to use an acceptable basis determination method with respect to Fund shares other than the average basis method (the Fund's default method), must elect to do so in writing, which may be electronic. The Fund, or its administrative agent, must report to the IRS and furnish to its shareholders the basis information for dispositions of Fund shares. See "Tax Information" in the SAI for a description of the rules regarding that election and the Fund's reporting obligation.

An individual must pay a 3.8% tax on the lesser of (1) the individual's ''net investment income,'' which generally includes distributions the Fund pays and net gains realized on a redemption or exchange of Fund shares, or (2) the excess of the individual's ''modified adjusted gross income'' over a threshold amount ($250,000 for married persons filing jointly and $200,000 for single taxpayers). This tax is in addition to any other taxes due on that income. A similar tax applies to estates and trusts. Shareholders should consult their own tax advisers regarding the effect, if any, this tax may have on their investment in Fund shares.

Each year, the Fund's shareholders will receive tax information regarding Fund distributions and dispositions of Fund shares to assist them in preparing their income tax returns.

The foregoing is only a summary of some of the important federal income tax considerations that may affect Fund shareholders, who should consult their tax advisers regarding specific questions as to the effect of federal, state and local income taxes on an investment in the Fund.

Item 12. Distribution Arrangements

Not Applicable

Item 13. Financial Highlights Information

Not Applicable

**32** **Private Placement Memorandum** – About Your Investment

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Additional Information

The Fund's Board of Trustees oversees generally the operations of the Fund. The Trust enters into contractual arrangements with various parties, including among others, the Fund's manager, sub-advisors, custodian, transfer agent, and accountants, who provide services to the Fund. Shareholders are not parties to any such contractual arrangements and those contractual arrangements are not intended to create in any shareholder any right to enforce them directly against the service providers or to seek any remedy under them directly against the service providers.

This PPM provides information concerning the Fund that you should consider in determining whether to purchase Fund shares. Neither this PPM nor the SAI is intended, or should be read, to be or create an agreement or contract between the Trust or the Fund and any investor, or to create any rights in any shareholder or other person other than any rights under federal or state law that may not be waived. Nothing in this PPM, the SAI or the Fund's reports to shareholders is intended to provide investment advice and should not be construed as investment advice.

Portfolio Holdings

A complete list of the Fund's holdings is made available in the Fund's Form N-PORT and Form N-CSR filed with the SEC. A description of the Fund's policies and procedures regarding the disclosure of portfolio holdings is available in the Fund's SAI. You may request a free copy of the Fund's SAI by calling 1-800-658-5811.

**Private Placement Memorandum** – Additional Information**33**

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Additional Information

Additional information about the Fund is found in the documents listed below. Request a free copy of these documents by calling 1-800-658-5811.

**Annual Shareholder Report/Semi-Annual Shareholder Report**

The Fund's Annual and Semi-Annual Shareholder Reports list the Fund's actual investments as of the report's date. They also include a discussion by the Manager of market conditions and investment strategies that significantly affected the Fund's performance. The report of the Fund's independent registered public accounting firm is included in the Annual Shareholder Report.

**SAI**

The SAI contains more details about the Fund and its investment policies. The SAI is incorporated in this PPM by reference (it is legally part of this PPM). A current SAI is on file with the SEC.

To obtain more information about the Fund or to request a copy of the documents listed above:

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| | |
|:---|:---|
| **By Telephone:** | Call<br>**1-800-658-5811** |
| **By Mail:** | American Beacon Institutional Funds Trust<br>P.O. Box 219643<br>Kansas City, MO 64121-9643 |
| **By E-mail:** | americanbeaconfunds@ambeacon.com |

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The SAI and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at www.sec.gov. Copies of this information may be obtained, after paying a duplicating fee, by electronic mail to publicinfo@sec.gov, or by writing to the SEC's Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-1520. The SAI and other information about the Fund may also be reviewed and copied at the SEC's Public Reference Room. Information on the operation of the SEC's Public Reference Room may be obtained by calling the SEC at (202) 551-8090.

---

| | |
|:---|:---|
| American Beacon is a registered service mark of American Beacon Advisors, Inc. The American Beacon Institutional Funds Trust, and American Beacon Diversified Fund are service marks of American Beacon Advisors, Inc. | ![](pr2354img001.jpg) |

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SEC File Number 811-23239

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**APPENDIX A**

**GLOSSARY**

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| | |
|:---|:---|
| **ACH** | Automated Clearing House |
| **ADRs** | American Depositary Receipts |
| **Advisers Act** | Investment Advisers Act of 1940, as amended |
| **American Beacon or Manager** | American Beacon Advisors, Inc. |
| **Board** | Board of Trustees |
| **Brexit** | The United Kingdom's departure from the European Union |
| **CAIA** | Chartered Alternative Investment Analyst Association |
| **Capital Gains Distributions** | Distributions of realized net capital gains |
| **CFTC** | Commodity Futures Trading Commission |
| **CMBS** | Commercial Mortgage-Backed Securities |
| **CMO** | Collateralized Mortgage Obligation |
| **CPO** | Commodity Pool Operator |
| **Denial of Services** | A cybersecurity incident that results in customers or employees being unable to access electronic systems |
| **Dividends** | Distributions of most or all of the Fund's net investment income |
| **Dow Jones** | Dow Jones Trademark Holdings LLC |
| **DRD** | Dividends-received deduction |
| **Equity REIT** | A pooled investment vehicle that owns, and often operates, income producing real estate |
| **ETF** | Exchange-Traded Fund |
| **EU** | European Union |
| **Fannie Mae** | Federal National Mortgage Association |
| **FCM** | Futures Commission Merchant |
| **FFCB** | Federal Farm Credit Banks |
| **FHLB** | Federal Home Loan Bank |
| **Forwards** | Forward Currency Contracts |
| **Freddie Mac** | Federal Home Loan Mortgage Corporation |
| **Ginnie Mae** | Government National Mortgage Association |
| **GNMA** | Government National Mortgage Association |
| **Hybrid REIT** | A pooled investment vehicle that owns, and often operates, income producing real estate and invests in mortgages secured by loans on such real estate |
| **Internal Revenue Code** | Internal Revenue Code of 1986, as amended |
| **Investment Company Act** | Investment Company Act of 1940, as amended |
| **IRS** | Internal Revenue Service |
| **LIBOR** | ICE LIBOR |
| **Management Agreement** | The Fund's Management Agreement with the Manager |
| **Moody's** | Moody's Investors Service, Inc. |
| **Mortgage REIT** | A pooled investment vehicle that invests in mortgages secured by loans on income producing real estate |
| **NAV** | Fund's net asset value |
| **NDF** | Non-deliverable forward contract |
| **NYSE** | New York Stock Exchange |
| **OTC** | Over-the-Counter |
| **Other Distributions** | Distributions of net gains from foreign currency transactions |
| **QDI** | Qualified Dividend Income |
| **REIT** | Real Estate Investment Trust |
| **RIC** | Registered Investment Company |
| **S&P Global** | S&P Global Ratings |

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**Private Placement Memorandum** – Additional Information**A-1**

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| | |
|:---|:---|
| **SAI** | Statement of Additional Information |
| **SEC** | Securities and Exchange Commission |
| **Securities Act** | Securities Act of 1933, as amended |
| **SOFR** | Secured Overnight Financing Rate |
| **SVP** | Signature Validation Program |
| **Trust** | American Beacon Institutional Funds Trust |
| **UK** | United Kingdom |

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**A-2** **Private Placement Memorandum** – Additional Information

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![](sa2355img001.jpg)<br>

**Statement of Additional Information**<br> March 1, 2023

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| | |
|:---|:---|
|  | **Share Class**<br>**AAL** |
| American Beacon Diversified Fund | ZABDFX |

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This Part B (Statement of Additional Information ("SAI")) is not a prospectus. Read this SAI in conjunction with the Private Placement Memorandum dated March 1, 2023 (the "PPM") for the American Beacon Diversified Fund (the "Fund"), a series of American Beacon Institutional Funds Trust, a Delaware statutory trust. Copies of the PPM may be obtained without charge by calling 1-800-658-5811. This SAI is incorporated by reference into the PPM. In other words, it is legally a part of the PPM. This SAI is not a PPM and is authorized for distribution to prospective investors only if preceded or accompanied by a current PPM. **Capitalized terms in this SAI have the same definition as in the PPM, unless otherwise defined. Capitalized** **terms that are not otherwise defined in this SAI or the PPM are defined in Appendix D.**

The financial statements and accompanying notes appearing in the Fund's [Annual Report to shareholders for the period ended October 31, 2022](https://www.sec.gov/Archives/edgar/data/1700933/000119312523004516/d375011dncsr.htm) are incorporated by reference into this SAI. Copies of the Fund's Annual and Semi-Annual Reports may be obtained, without charge, upon request by calling 1-800-658-5811.

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**Table of Contents**

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| | |
|:---|:---|
| [**Organization and History of the Fund**](#chapter_2-sect1_1_2355) | [1](#chapter_2-sect1_1_2355) |
| [**Additional Information About Investment Strategies and Risks**](#chapter_2-sect1_2_2355) | [1](#chapter_2-sect1_2_2355) |
| [**Other Investment Strategies and Risks**](#chapter_2-sect1_3_2355) | [33](#chapter_2-sect1_3_2355) |
| [**Investment Restrictions**](#chapter_2-sect1_4_2355) | [33](#chapter_2-sect1_4_2355) |
| [**Temporary or Defensive Investments**](#chapter_2-sect1_5_2355) | [35](#chapter_2-sect1_5_2355) |
| [**Portfolio Turnover**](#chapter_2-sect1_6_2355) | [35](#chapter_2-sect1_6_2355) |
| [**Disclosure of Portfolio Holdings**](#chapter_2-sect1_7_2355) | [35](#chapter_2-sect1_7_2355) |
| [**Lending of Portfolio Securities**](#chapter_2-sect1_8_2355) | [37](#chapter_2-sect1_8_2355) |
| [**Trustees and Officers of the Trust**](#chapter_2-sect1_9_2355) | [37](#chapter_2-sect1_9_2355) |
| [**Code of Ethics**](#chapter_2-sect1_10_2355) | [44](#chapter_2-sect1_10_2355) |
| [**Proxy Voting Policies**](#chapter_2-sect1_11_2355) | [45](#chapter_2-sect1_11_2355) |
| [**Control Persons and 5% Shareholders**](#chapter_2-sect1_12_2355) | [45](#chapter_2-sect1_12_2355) |
| [**Investment Sub-Advisory Agreements**](#chapter_2-sect1_13_2355) | [45](#chapter_2-sect1_13_2355) |
| [**Management, Administrative, Securities Lending, and Distribution Services**](#chapter_2-sect1_14_2355) | [46](#chapter_2-sect1_14_2355) |
| [**Other Service Providers**](#chapter_2-sect1_15_2355) | [48](#chapter_2-sect1_15_2355) |
| [**Portfolio Managers**](#chapter_2-sect1_16_2355) | [48](#chapter_2-sect1_16_2355) |
| [**Portfolio Securities Transactions**](#chapter_2-sect1_17_2355) | [54](#chapter_2-sect1_17_2355) |
| [**Redemptions in Kind**](#chapter_2-sect1_18_2355) | [55](#chapter_2-sect1_18_2355) |
| [**Purchases in Kind**](#chapter_2-sect1_19_2355) | [55](#chapter_2-sect1_19_2355) |
| [**Tax Information**](#chapter_2-sect1_20_2355) | [55](#chapter_2-sect1_20_2355) |
| [**Description of the Trust**](#chapter_2-sect1_21_2355) | [60](#chapter_2-sect1_21_2355) |
| [**Financial Statements**](#chapter_2-sect1_22_2355) | [60](#chapter_2-sect1_22_2355) |
| [**Appendix A: Proxy Voting Policy and Procedures for the Trust**](#chapter_2-sect1_23_2355) | [A-1](#chapter_2-sect1_23_2355) |
| [**Appendix B: Proxy Voting Policies for the Investment Sub-Advisors**](#chapter_2-sect1_24_2355) | [B-1](#chapter_2-sect1_24_2355) |
| [**Appendix C: Ratings Definitions**](#chapter_2-sect1_25_2355) | [C-1](#chapter_2-sect1_25_2355) |
| [**Appendix D: Glossary**](#chapter_2-sect1_26_2355) | [D-1](#chapter_2-sect1_26_2355) |

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**ORGANIZATION AND HISTORY OF THE FUND**

The Fund is a separate series of the American Beacon Institutional Funds Trust (the "Trust"), an open- end management investment company organized as a Delaware statutory trust on January 17, 2017. The Fund constitutes a separate investment portfolio with a distinct investment objective and distinct purpose and strategy. The Fund is "diversified" as defined in the Investment Company Act.

**ADDITIONAL INFORMATION ABOUT INVESTMENT STRATEGIES AND RISKS**

The investment objective and principal investment strategies and risks of the Fund are described in the PPM. This section contains additional information about the Fund's investment policies and risks and types of investments the Fund may purchase. The composition of the Fund's portfolio and the strategies that the Fund may use in selecting investments may vary over time. The Fund is not required to use all of the investment strategies described below in pursuing its investment objective. It may use some of the investment strategies only at some times or it may not use them at all.

**Asset-Backed Securities** — Asset-backed securities are securities issued by trusts and special purpose entities that represent direct or indirect participations in, or are secured by and payable from, pools of assets. These assets include 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. The Fund's investments in asset-backed securities will be subject to its rating and quality requirements. Asset-backed securities may be backed by a single asset; however, asset-backed securities that represent an interest in a pool of assets provide greater credit diversification. The value of an asset-backed security can be 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. In addition, payments of principal and interest passed through to holders of asset-backed securities are frequently supported by some form of credit enhancement, such as a letter of credit, surety bond, or 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 asset-backed security's par value. Value is also affected if any credit enhancement has been exhausted. Asset-backed securities may include securities backed by pools of loans made to "subprime" borrowers with blemished credit histories. The underwriting standards for subprime loans may be lower and more flexible than the standards generally used by lenders for borrowers with non-blemished credit histories with respect to the borrower's credit standing and repayment history. Certain collateral may be difficult to locate in the event of a default, and recoveries of depreciated or damaged collateral may not fully recover payments due on such collateral. In addition, certain types of collateral, such as credit receivables, are unsecured, and the debtors are entitled to the protection of a number of state and federal consumer credit laws, many of which give such debtors the right to set off certain amounts owed on the credit cards, thereby reducing the balance due. In addition, if the Fund purchases asset-backed securities that are "subordinated" to other interests in the same pool of assets, the Fund may only receive payments after the pool's obligations to other investors have been satisfied. Asset-backed securities may be subject to interest rate risk and prepayment risk.

**Borrowing Risk** — The Fund may borrow money in an amount up to one-third of its total assets (including the amount borrowed) from banks and other financial institutions. The Fund may borrow for temporary purposes. Borrowing may exaggerate changes in the Fund's NAV and in its total return. Interest expense and other fees associated with borrowing may impact the Fund's expenses and reduce its returns. (See "Cover and Asset Segregation" disclosure below.)

**Callable Securities** — The Fund may invest in fixed-income securities with call features. A call feature allows the issuer of the security to redeem or call the security prior to its stated maturity date. In periods of falling interest rates, issuers may be more likely to call in securities that are paying higher coupon rates than prevailing interest rates. In the event of a call, the Fund would lose the income that would have been earned to maturity on that security, and the proceeds received by the Fund may be invested in securities paying lower coupon rates. Thus, the Fund's income could be reduced as a result of a call. In addition, the market value of a callable security may decrease if it is perceived by the market as likely to be called, which could have a negative impact on the Fund's total return.

**Cash Equivalents and Other Short-Term Investments** — Cash equivalents and other short-term investments in which the Fund may invest include the investments set forth below. Certain of these investments are issued by and provide exposure to banks. The activities of U.S. banks and most foreign banks are subject to comprehensive regulations. The enactment of new legislation or regulations, as well as changes in interpretation and enforcement of current laws, may affect the manner of operations and profitability of domestic and foreign banks. Significant developments in the U.S. banking industry have included increased competition from other types of financial institutions, increased acquisition activity and geographic expansion. Banks may be particularly susceptible to certain economic factors, such as interest rate changes and adverse developments in the market for real estate. Fiscal and monetary policy and general economic cycles can affect the availability and cost of funds, loan demand and asset quality and thereby impact the earnings and financial conditions of banks.

■ **Bankers'** **Acceptances.** Bankers' acceptances are short-term credit instruments designed to enable businesses to obtain funds to finance commercial transactions. Generally, an acceptance is a time draft drawn on a bank by an exporter or an importer to obtain a stated amount of funds to pay for specific merchandise. The draft is then "accepted" by a bank that, in effect, unconditionally guarantees to pay the face value of the instrument on its maturity date. The acceptance may then be held by the accepting bank as an earning asset or it may be sold in the secondary market at the going rate of discount for a specific maturity. Most acceptances have maturities of six months or less. Bankers' acceptances rank junior to domestic deposit liabilities of the bank and pari passu with other senior, unsecured obligations of the bank.

■ **Bank Deposit Notes.** Bank deposit notes are obligations of a bank that provide an alternative to certificates of deposit. Similar to certificates of deposit, deposit notes represent bank level investment and, therefore, are senior to all holding company corporate debt. Bank deposit notes rank junior to domestic deposit liabilities of the bank and pari passu with other senior, unsecured obligations of the bank. Typically, bank deposit notes are not insured by the Federal Deposit Insurance Corporation or any other insurer.

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■ **Bearer** **Deposit Notes.** Bearer deposit notes, or bearer bonds, are bonds or debt securities that entitle the holder of the document to ownership or title in the deposit. Such notes are typically unregistered, and whoever physically holds the bond is presumed to be the owner of the instrument. Recovery of the value of a bearer bond in the event of its loss or destruction usually is impossible. Interest is typically paid upon presentment of an interest coupon for payment.

■ **CDs.** CDs are negotiable certificates issued against funds deposited in an eligible bank (including its domestic and foreign branches, subsidiaries and agencies) for a definite period of time and earning a specified rate of return. U.S. dollar denominated CDs issued by banks abroad are known as Eurodollar CDs. CDs issued by foreign branches of U.S. banks are known as Yankee CDs.

■ **Commercial Paper.** Commercial paper is a short-term debt security issued by a corporation, bank, municipality, or other issuer, usually for purposes such as financing current operations. The Fund may invest in commercial paper that cannot be resold to the public without an effective registration statement under the Securities Act. While some restricted commercial paper normally is deemed illiquid, in certain cases it may be deemed liquid.

■ **Government Obligations.** Government obligations may include U.S. Treasury securities, Treasury inflation-protected securities, and other debt instruments backed by the full faith and credit of the United States, or debt obligations of U.S. Government-sponsored entities.

■ **Time Deposits.** Time deposits, also referred to as "fixed time deposits," are non-negotiable deposits maintained at a banking institution for a specified period of time at a specified interest rate. Time deposits may be withdrawn on demand by the investor, but may be subject to early withdrawal penalties which vary depending upon market conditions and the remaining maturity of the obligation. There are no contractual restrictions on the right to transfer a beneficial interest in a time deposit to a third party, although there is no market for such deposits.

**Collateralized Bond Obligations, Collateralized Debt Obligations, and Collateralized Loan Obligations** — The Fund may invest in each of CBOs, CLOs, other CDOs and other similarly structured securities. CBOs, CLOs and other CDOs are types of asset-backed securities. A CBO is ordinarily issued by a trust or other special purpose entity ("SPE"), and is often backed by a diversified pool of high risk, below-investment grade fixed income securities. The collateral can be from many different types of fixed income securities such as high yield debt, residential privately issued mortgage-related securities, commercial privately issued mortgage- related securities, trust preferred securities and emerging markets debt. A CLO is ordinarily issued by a trust or other SPE and is typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The CLOs in which the Fund invests will be subject to Senior Loan Risk, Indebtedness, Loan Participation and Assignment Risk, and Illiquid and Restricted Securities Risk. Other CDOs are trusts backed by other types of assets representing obligations of various parties. Although certain CDOs may benefit from credit enhancement in the form of a senior-subordinate structure, overcollateralization or bond insurance, such enhancement may not always be present, and may fail to protect against the risk of loss upon default of the collateral. Certain CDO issuers may use derivatives contracts to create "synthetic" exposure to assets rather than holding such assets directly, which entails the risks of derivative instruments described elsewhere in this SAI. CBOs, CLOs and other CDOs may charge management fees and administrative expenses.

For CBOs, CLOs and other CDOs, the cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the "equity" tranche which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Since they are partially protected from defaults, senior tranches from a CBO trust, CLO trust or trust of another CDO typically have higher ratings and lower yields than their underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, CBO, CLO or other CDO mezzanine, junior or even more senior tranches can experience substantial losses due to actual defaults, downgrades of the underlying collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CBO, CLO or other CDO securities as a class. Interest on certain tranches of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than cash), which involves continued exposure to default risk with respect to such payments.

The risks of an investment in a CBO, CLO or other CDO depend largely on the type of the collateral securities and the class, or tranche, of the instrument in which the Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus, are not registered under the securities laws. As a result, investments in CBOs, CLOs and other CDOs may be characterized by the Fund as illiquid securities; however, an active dealer market may exist for CBOs, CLOs and other CDOs allowing them to qualify as Rule 144A transactions. Please refer to "Illiquid and Restricted Securities" below for further discussion of regulatory considerations and constraints related to such securities. In addition to the normal risks associated with fixed income securities and asset-backed securities discussed elsewhere in this SAI and the Fund's PPM (e.g., prepayment and extension risk, credit risk, liquidity risk, market risk, and interest rate risk), CBOs, CLOs and other CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the risk that the Fund may invest in CBOs, CLOs or other CDOs, or tranches thereof, that are subordinate to other classes; (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results (v) the investment return achieved could be significantly different from the return predicted by financial models; and (vi) the lack of a readily available secondary market for CDOs. In addition, interest rate risk may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates.

CLO equity, mezzanine and other junior tranches are subordinated to more senior tranches of CLO debt. Subordinated tranches are subject to increased risks of default relative to the holders of senior and superior-priority interests in the same CLO. The Fund may be in a first loss or subordinated position with respect to realized losses on the assets of the CLOs in which it invests. In addition, at the time of issuance, CLO equity securities are typically under-collateralized in that the liabilities of a CLO at inception exceed its total assets. The failure by a CLO in which the Fund invests to satisfy financial covenants, including with respect to adequate collateralization and/or interest coverage tests, could lead to a reduction in the CLO's payments to the Fund. In the event that a CLO fails certain tests, holders of CLO senior debt may be entitled to additional payments that would, in turn, reduce the payments the subordinated tranches would otherwise be entitled to receive.

**Contingent Convertible Securities** **("CoCos")** — CoCos are a form of hybrid debt security issued by financial institutions. If an issuer experiences an event that causes its capital to fall below a predetermined "trigger" level, CoCos are either converted into equity securities of the issuer or undergo a

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full or partial write-down of their principal. The triggering events and conditions are specific to the issuing institution and its regulatory requirements and may be linked to regulatory capital thresholds or regulatory actions calling into question the issuing banking institution's continued viability as a going concern. Triggering events might include, for instance, an issuer failing to maintain a minimum capital level, a regulator's determination that the issuer should convert the security to maintain continued viability, or the issuer receiving high levels of public support. Market value will fluctuate based on unpredictable factors. The value of CoCos is unpredictable and will be influenced by many factors including, without limitation: (i) the creditworthiness of the issuer and/or fluctuations in such issuer's applicable capital ratios; (ii) supply and demand for the CoCos; (iii) general market conditions and available liquidity; and (iv) economic, financial and political events that affect the issuer, its particular market or the financial markets in general.

CoCos have no stated maturity date, have discretionary interest payments and are usually subordinated debt instruments. Because CoCos are typically subordinated debt instruments, in the event the issuer liquidates, dissolves, or winds up before a triggering event, the Fund's claims will generally be junior to those holding more senior debt obligations. If the CoCo converts to an equity security, the Fund's investment would be even further subordinated because equity securities have the lowest priority in the capital structure of an issuer. As a result, an investment by the Fund in CoCos is subject to the risk that coupon (i.e., interest) payments may be cancelled by the issuer or a regulatory authority in order to help the issuer absorb losses. If the issuer converts the CoCo to an equity security, it is not required to pay a dividend, and the Fund would lose interest payments and potentially all income. Alternatively, if the issuer writes down the principal due on the CoCos, the Fund could lose some or all of its investment. Under some circumstances, the liquidation value of certain types of contingent convertible securities may be adjusted downward to below the original par value. The write-down of the par value would occur automatically and would not entitle the holders to seek bankruptcy of the company. Some CoCos have a set stock conversion rate that would cause an automatic write-down of capital if the price of the stock is below the conversion price on the conversion date. CoCos may be subject to redemption at the option of the issuer at a predetermined price. CoCos are often rated below investment grade and are subject to the risks of high-yield securities. Because CoCos are issued primarily by financial institutions, CoCos may present substantially increased risks at times of financial turmoil, which could affect financial institutions more than companies in other sectors and industries. CoCos carry the general risks applicable to other fixed income investments, including interest rate risk, credit risk, market risk and liquidity risk.

**Convertible Securities** — Convertible securities include corporate bonds, notes, debentures, preferred stock or other securities that may be converted into or exchanged for a prescribed amount of common stock of the same or a different issuer within a particular period of time at a specified price or formula. Convertible securities generally have features of, and risks associated with, both equity and fixed-income instruments. As such, the value of most convertible securities will vary with changes in the price of, and will be subject to the risks associated with, the underlying common stock. Additionally, convertible securities are also subject to the risk that the issuer may not be able to pay principal or interest when due and the value of the convertible security may change based on the issuer's credit rating.

A convertible security entitles the holder to receive interest paid or accrued on debt or dividends paid on preferred stock until the convertible security matures or is redeemed, converted or exchanged. Before conversion, such securities ordinarily provide a stream of income with generally higher yields than common stocks of the same or similar issuers, but lower than the yield on non-convertible debt. The value of a convertible security is a function of (1) its yield in comparison to the yields of other securities of comparable maturity and quality that do not have a conversion privilege and (2) its worth if converted to the underlying common stock. While no securities investment is without some risk, investments in convertible securities generally entail less risk than investments in the issuer's common stock, although the extent to which such risk is reduced depends in large measure upon the degree to which the convertible security sells above its value as a fixed-income security. Holders of convertible securities have a claim on the assets of the issuer senior to the common stockholders but may be subordinated to holders of similar non-convertible securities of the same issuer.

If the convertible security's "conversion value," which is the market value of the underlying common stock that would be obtained upon the conversion of the convertible security, is substantially below the "investment value," which is the value of a convertible security viewed without regard to its conversion feature (i.e., strictly on the basis of its yield), the price of the convertible security is governed principally by its investment value. If the conversion value of a convertible security increases to a point that approximates or exceeds its investment value, the value of the security will be principally influenced by its conversion value. A convertible security will sell at a premium over its conversion value to the extent investors place value on the right to acquire the underlying common stock while holding an income-producing security.

The market value of convertible securities tends to decline as interest rates increase and, conversely, to increase as interest rates decline. While convertible securities generally offer lower interest or dividend yields than non-convertible debt securities of similar quality, they do enable the investor to benefit from increases in the market price of the underlying common stock. A convertible security may have a mandatory conversion feature or a call feature that subjects it to redemption at the option of the issuer at a price established in the security's governing instrument. If a convertible security held by the Fund is called for redemption the Fund will be required to convert it into the underlying common stock, sell it to a third party or permit the issuer to redeem the security. Any of these actions could have an adverse effect on the Fund's ability to achieve its investment objectives. Because of the conversion feature, certain convertible securities may be considered equity equivalents.

**Corporate Actions** — From time to time, the Fund may voluntarily participate in corporate actions (for example, acquisitions, mergers, rights offerings, conversion privileges, exchange offers, credit event settlements, etc.) where the issuer or counterparty offers securities or instruments to holders or counterparties, such as the Fund, and the acquisition is determined to be beneficial to Fund shareholders ("Corporate Actions"). In connection with its holdings of foreign and emerging markets securities and depositary receipts, the Fund may not have the same rights afforded to stockholders of a typical domestic company in the event of a corporate action. Notwithstanding any percentage investment limitation listed under the "Investment Restrictions" section or any percentage investment limitation of the Investment Company Act or rules thereunder, if the Fund has the opportunity to acquire a permitted security or instrument through a Corporate Action, and by doing so, the Fund would exceed a percentage investment limitation following the acquisition, it will not constitute a violation if, prior to the receipt of the securities or instruments and after announcement of the Corporate Action, the Fund sells an offsetting amount of assets that are subject to the investment limitation in question at least equal to the value of the securities or instruments to be acquired.

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**Cover and Asset Segregation** — The Fund may borrow money, make investments or employ trading practices that obligate the Fund, on a fixed or contingent basis, to deliver an asset or make a cash payment to another party in the future. The Fund will comply with rules and guidance from the SEC with respect to coverage of certain investments and trading practices. The Fund's approach to asset coverage may vary depending on terms within its agreement with a counterparty. With respect to certain investments under the agreement, the Fund calculates the obligations of the parties to the agreement on a "net basis" (i.e., the two payment streams are netted out with the Fund receiving or paying, as the case may be, only the net amount of the two payments). Under such circumstances, the Fund's current obligations will generally be equal only to the net amount to be paid by the Fund based on the relative values of the positions held by each party to the agreement. Earmarking or otherwise segregating a large percentage of the Fund's assets could impede the management of the Fund's portfolio or the Fund's ability to meet redemption requests or other current obligations, because the Fund may be unable to promptly dispose of those assets.

**Currencies Risk** — The Fund may have significant exposure to foreign currencies for investment or hedging purposes by making direct investments in non-U.S. currencies or in securities denominated in non-U.S. currencies (including emerging market currencies), or by purchasing or selling foreign currency forward contracts, non-U.S. currency futures contracts, options on non-U.S. currencies and non-U.S. currency futures and swaps for cross-currency investments. Foreign currencies will fluctuate, and may decline, in value relative to the U.S. dollar and affect the Fund's investments in foreign (non-U.S.) currencies, securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies. For example, if the U.S. dollar appreciates against foreign currencies, the value of Fund holdings generally would depreciate and vice versa.

**Cybersecurity and Operational Risk** — With the increased use of technologies such as the Internet and the dependence on computer systems to perform necessary business functions, the Fund, and its service providers, may be prone to operational and information security risks resulting from cyber-attacks. In general, cyber incidents can result from deliberate attacks or unintentional events. Cyber-attacks include, but are not limited to, stealing or corrupting data maintained online or digitally (e.g., through "hacking," computer viruses or other malicious software coding), the theft and holding for ransom of proprietary or confidential information or data (sometimes referred to as "ransomware" attacks), denial of service attacks on websites, "phishing" attempts and other social engineering techniques aimed at personnel or systems, and the unauthorized release of confidential information. Cyber-attacks affecting the Fund or the Manager, a sub-advisor, the custodian, the transfer agent, intermediaries and other third-party service providers may adversely impact the Fund. For instance, cyber-attacks may interfere with the processing of shareholder transactions, result in the loss or theft of shareholder data or funds, impact the Fund's ability to calculate NAV per share, cause the release of private shareholder information or confidential business information, impede trading, subject the Fund to regulatory fines or financial losses and/or cause reputational damage. A cyber-attack may also result in shareholders or service providers being unable to access electronic systems ("denial of services"), loss or theft of proprietary information or corporate data, physical damage to a computer or network system, or remediation costs associated with system repairs. The Fund may also incur additional costs for cybersecurity risk management purposes. Similar types of cybersecurity risks are also present for issuers or securities in which the Fund may invest, which could result in material adverse consequences for such issuers and may cause the Fund's investment in such companies to lose value. Adverse consequences also could result from cybersecurity incidents affecting counterparties with which the Fund engages in transactions, governmental and other regulatory authorities, exchanges and other financial market operators, banks, brokers, dealers, insurance companies, other financial institutions and other parties. The Fund's service providers also may be negatively impacted due to operational risks arising from non-cybersecurity related factors such as processing errors and human errors, inadequate or failed internal or external processes, failures in systems and technology errors or malfunctions, changes in personnel, and errors caused by Fund service providers or counterparties.

In addition, other events or circumstances — whether foreseeable, unforeseeable, or beyond our control, such as acts of war, other conflicts, terrorism, natural disaster, widespread disease, pandemic or other public health crises may result in, among other things, quarantines and travel restrictions, workforce displacement and loss or reduction in Personnel and other resources. In the above circumstances, the Fund and the Service Providers' operations may be significantly impacted, or even temporarily halted. The Fund's securities market counterparties or vendors may face the same or similar systems failure, cybersecurity breaches and other business disruptions risks.

Any of these results could have a substantial adverse impact on the Fund and its shareholders. For example, if a cybersecurity incident results in a denial of service, Fund shareholders could lose access to their electronic accounts and be unable to buy or sell Fund shares for an unknown period of time, and service providers could be unable to access electronic systems to perform critical duties for the Fund, such as trading, NAV calculation, shareholder accounting or fulfillment of Fund share purchases and redemptions. Cybersecurity incidents could cause the Fund or a service provider to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures, or financial loss of a significant magnitude and could result in allegations that the Fund or Fund service provider violated privacy and other laws. There are inherent limitations in risk management systems that seek to reduce the risks associated with cybersecurity and business continuity plans in the event there is a cybersecurity breach, including the possibility that certain risks may not have been adequately identified or prepared for, in large part because different or unknown threats may emerge in the future. Furthermore, the Fund does not control the cybersecurity systems and plans of the issuers of securities in which the Fund invests, third party service providers, trading counterparties or any other service providers whose operations may affect the Fund or its shareholders. The widespread use of work-from-home arrangements, such as during the COVID-19 pandemic, may increase operational and information security risks.

**Debentures** — Debentures are unsecured, medium- to long-term debt securities protected only by the general creditworthiness of the corporate or government issuer, not by collateral, and documented by indentures. Governments often issue debentures because they generally cannot guarantee debt with assets due to the fact that government assets are public property. Debenture holders are unsecured creditors. In the event of default or bankruptcy by the issuer, debenture holders will not have a claim against any specific assets of the issuer and will therefore only be paid from the issuer's assets after the secured creditors have been paid. The value of a debenture can fluctuate with changes in interest rates and the perceived ability of the issuer to make interest or principal payments on time.

**Derivatives** — Generally a derivative is a financial instrument the value of which is based on, or "derived" from, a traditional security, asset, currency, or market index (collectively referred to as "reference assets"). The Fund may use derivatives for hedging and efficient portfolio management purposes. Derivative instruments may allow for better management of exposure to certain asset classes, as well as more efficient access to asset classes. There are many different types of derivatives and many different ways to use them. Some forms of derivatives, such as exchange-traded futures, options on securities, commodities, or indices, and certain forward contracts are traded on regulated exchanges. These types of derivatives are standardized

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contracts that can easily be bought and sold, and whose market values are determined and published daily. Non-standardized derivatives, on the other hand, tend to be more specialized or complex, and may be harder to value. Certain derivative securities are described more accurately as index/structured securities. Index/structured securities are derivative securities whose value or performance is linked to other equity securities (such as depositary receipts), currencies, interest rates, indices or other financial indicators.

Derivatives may involve significant risk. Many derivative instruments often require little or no payment and therefore often create inherent economic leverage. Some derivatives have the potential for unlimited loss, regardless of the size of the Fund's initial investment. Not all derivative transactions require a counterparty to post collateral, which may expose the Fund to greater losses in the event of a default by a counterparty.

Derivatives may be illiquid and may be more volatile than other types of investments. The Fund may buy and sell derivatives that are neither centrally cleared nor traded on an exchange. Such derivatives may be subject to heightened counterparty, liquidity and valuation risk.

The regulation of the U.S. and non-U.S. derivatives markets has undergone substantial change in recent years and such change may continue. In particular, effective August 19, 2022 (the "Compliance Date"), Rule 18f-4 under the 1940 Act (the "Derivatives Rule") replaced the asset segregation regime of Investment Company Act Release No. 10666 ("Release 10666") with a new framework for the use of derivatives by registered funds. As of the Compliance Date, the SEC rescinded Release 10666 and withdrew no-action letters and similar guidance addressing the Fund's use of derivatives and began requiring the Fund to satisfy the requirements of the Derivatives Rule. As a result, the Fund is no longer required to engage in "segregation" or "coverage" techniques with respect to derivatives transactions and will instead comply with the applicable requirements of the Derivatives Rule.

The Derivatives Rule mandates that the Fund adopt and/or implement: (i) value-at-risk limitations ("VaR"); (ii) a written derivatives risk management program; (iii) new Board oversight responsibilities; and (iv) new reporting and recordkeeping requirements. In the event that the Fund's derivative exposure is 10% or less of its net assets, excluding certain currency and interest rate hedging transactions, it can elect to be classified as a limited derivatives user ("Limited Derivatives User") under the Derivatives Rule, in which case the Fund is not subject to the full requirements of the Derivatives Rule. Limited Derivatives Users are excepted from VaR testing, implementing a derivatives risk management program, and certain Board oversight and reporting requirements mandated by the Derivatives Rule. However, a Limited Derivatives User is still required to implement written compliance policies and procedures reasonably designed to manage its derivatives risks. The Derivatives Rule also provides special treatment for reverse repurchase agreements, similar financing transactions and unfunded commitment agreements. Specifically, the Fund may elect whether to treat reverse repurchase agreements and similar financing transactions as "derivatives transactions" subject to the requirements of the Derivatives Rule or as senior securities equivalent to bank borrowings for purposes of Section 18 of the 1940 Act. In addition, the Fund may invest in a security on a when-issued or forward-settling basis, or with a non-standard settlement cycle, and the transaction will be deemed not to involve a senior security, provided that: (i) the Fund intends to physically settle the transaction; and (ii) the transaction will settle within 35 days of its trade date.

The enactment of the Dodd-Frank Act and similar global regulations resulted in historic and comprehensive reform relating to derivatives, including the manner in which they are entered into, reported, recorded, executed, and settled or cleared. Pursuant to these regulations, the SEC, CFTC and foreign regulators have promulgated a broad range of regulations and guidance on the use of derivatives, including use by registered investment companies. These include regulations with respect to security-based swaps (e.g., derivatives based on a single security or narrow-based securities index) that are regulated by the SEC in the U.S., and other swaps that are regulated by the CFTC and the markets in which these instruments trade. In addition, regulations adopted by the banking regulators require certain banks to include in a range of financial contracts, including many derivatives contracts, terms delaying or restricting default, termination and other rights in the event that the bank and/or its affiliates become subject to certain types of resolution or insolvency proceedings. The regulations could limit the Fund's ability to exercise a range of cross-default rights if its counterparty, or an affiliate of the counterparty, is subject to bankruptcy or similar proceeding. Such regulations could further negatively impact the Fund's use of derivatives. Under CFTC Regulation 4.5, the Fund is excluded from registration as a CPO if its investments in commodity interests (such as futures contracts, options on futures contracts, non-deliverable forwards and swaps), other than those used for bona fide hedging purposes (as defined by the CFTC), are limited, such that the aggregate initial margin and premiums required to establish the positions (after taking into account unrealized profits and unrealized losses on any such positions and excluding the amount by which options are "in-the-money" at the time of purchase) do not exceed 5% of the Fund's NAV. Alternatively, the aggregate net notional value of the positions, determined at the time the most recent position was established, may not exceed 100% of the Fund's NAV, after taking into account unrealized profits and unrealized losses on any such positions. Further, to qualify for the exclusion in Regulation 4.5, the Fund must satisfy a marketing test, which requires, among other things, that the Fund not hold itself out as a vehicle for trading commodity interests. The Fund's ability to use these instruments also may be limited by federal income tax considerations. See the section entitled "Tax Information."

Further information about the specific types of derivative instruments in which the Fund may invest, including the risks involved in their use, are contained under the description of each of these instruments in this SAI. The Fund may invest in various types of derivatives, including among others:

■ **Forward Foreign Currency Contracts.** The Fund may enter into forward foreign currency contracts ("forward currency contracts"), which are a type of derivative instrument, for a variety of reasons.   A forward currency contract involves an obligation to purchase or sell a specified 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. Because these forward currency contracts normally are settled through an exchange of currencies, they are traded in the interbank market directly between currency traders (usually large commercial banks) and their customers.

Forward currency contracts may serve as long hedges. For example, the Fund may purchase a forward currency contract to lock in the U.S. dollar price of a security denominated in a foreign currency that it intends to acquire. Forward currency contract transactions also may serve as short hedges. For example, the Fund may sell a forward currency contract to lock in the U.S. dollar equivalent of the proceeds from the anticipated sale of a security or from a dividend or interest payment on a security denominated in a foreign currency.

The Fund may enter into forward currency contracts to sell a foreign currency for a fixed U.S. dollar amount approximating the value of some or all of its respective portfolio securities denominated in such foreign currency. In addition, the Fund may use forward currency contracts when a

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sub-advisor wishes to "lock in" the U.S. dollar price of a security when the Fund is purchasing or selling a security denominated in a foreign currency or anticipates receiving a dividend or interest payment denominated in a foreign currency.

The Fund may enter into forward currency contracts for the purchase or sale of a specified currency at a specified future date either with respect to specific transactions or with respect to portfolio positions in order to minimize the risk to the Fund from adverse changes in the relationship between the U.S. dollar and foreign currencies.

The Fund may use forward currency contracts to seek to hedge against, or profit from, changes in the value of a particular currency by using forward currency contracts on another foreign currency or a basket of currencies, the value of which a sub-advisor believes will have a positive correlation to the values of the currency being hedged. When hedging, use of a different foreign currency magnifies the risk that movements in the price of the forward contract will not correlate or will correlate unfavorably with the foreign currency being hedged.

In addition, the Fund may use forward currency contracts to shift exposure to foreign currency fluctuations from one country to another. For example, if the Fund owned securities denominated in a foreign currency that a sub-advisor believed would decline relative to another currency, it might enter into a forward currency contract to sell an appropriate amount of the first foreign currency, with payment to be made in the second currency. Transactions that involve two foreign currencies are sometimes referred to as "cross hedging." Use of a different foreign currency magnifies the Fund's exposure to foreign currency exchange rate fluctuations.

The Fund also may enter into forward currency contracts for non-hedging purposes if a foreign currency is anticipated to appreciate or depreciate in value, but securities denominated in that currency do not present attractive investment opportunities and are not held in the Fund's investment portfolio.

The cost to the Fund of engaging in forward currency contracts varies with factors such as the currency involved, the length of the contract period and the market conditions then prevailing. Because forward currency contracts usually are entered into on a principal basis, no fees or commissions are involved. When the Fund enters into a forward currency contract, it relies on the counterparty to make or take delivery of the underlying currency at the maturity of the contract. Failure by the counterparty to do so would result in the loss of any expected benefit of the transaction.

Sellers or purchasers of forward currency contracts can enter into offsetting closing transactions, similar to closing transactions on futures, by purchasing or selling, respectively, an instrument identical to the instrument sold or bought, respectively. Secondary markets generally do not exist for forward currency contracts, however, with the result that closing transactions generally can be made for forward currency contracts only by negotiating directly with the counterparty. Thus, there can be no assurance that the Fund will in fact be able to close out a forward currency contract at a favorable price prior to maturity. In addition, in the event of insolvency of the counterparty, the Fund might be unable to close out a forward currency contract at any time prior to maturity. In either event, the Fund would continue to be subject to market risk with respect to the position, and would continue to be required to maintain a position in the securities or currencies that are the subject of the hedge or to maintain cash or securities.

The precise matching of forward currency contract amounts and the value of securities whose U.S. dollar value is being hedged by those contracts involved generally will not be possible because the value of such securities, measured in the foreign currency, will change after the forward currency contract has been established. Thus, the Fund might need to purchase or sell foreign currencies in the spot (cash) market to the extent such foreign currencies are not covered by forward contracts. The projection of short-term currency market movements is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain.

The Fund bears the risk of loss of the amount expected to be received under a forward currency contract in the event of the default or bankruptcy of a counterparty. If such a default occurs, the Fund may have contractual remedies pursuant to the forward currency contract, but such remedies may be subject to bankruptcy and insolvency laws which could affect the Fund's rights as a creditor.

At the maturity of a forward contract, the Fund may sell the portfolio security and make delivery of the foreign currency, or it may retain the security and either extend the maturity of the forward contract (by "rolling" that contract forward) or may initiate a new forward contract. If the Fund retains the portfolio security and engages in an offsetting transaction, the Fund will incur a gain or a loss (as described below) to the extent that there has been movement in forward contract prices. If the Fund engages in an offsetting transaction, it may subsequently enter into a new forward contract to sell the foreign currency.

Should forward prices decline during the period between the Fund's entering into a forward contract for the sale of a foreign currency and the date it enters into an offsetting contract for the purchase of the foreign currency, the Fund will realize a gain to the extent the price of the currency it has agreed to sell exceeds the price of the currency it has agreed to purchase. Should forward prices increase, the Fund will suffer a loss to the extent the price of the currency it has agreed to purchase exceeds the price of the currency it has agreed to sell.

Forward currency contracts in which the Fund may engage include foreign exchange forwards. The consummation of a foreign exchange forward requires the actual exchange of the principal amounts of the two currencies in the contract (i.e., settlement on a physical basis). Because foreign exchange forwards are physically settled through an exchange of currencies, they are traded in the interbank market directly between currency traders (usually large commercial banks) and their customers. A foreign exchange forward generally has no deposit requirement, and no commissions are charged at any stage for trades; foreign exchange dealers realize a profit based on the difference (the spread) between the prices at which they are buying and the prices at which they are selling various currencies. When the Fund enters into a foreign exchange forward, it relies on the counterparty to make or take delivery of the underlying currency at the maturity of the contract. Failure by the counterparty to do so would result in the loss of any expected benefit of the transaction.

The Fund may be required to obtain the currency that it must deliver under the foreign exchange forward through the sale of portfolio securities denominated in such currency or through conversion of other assets of the Fund into such currency. When the Fund engages in foreign currency

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transactions for hedging purposes, it will not enter into foreign exchange forwards to sell currency or maintain a net exposure to such contracts if their consummation would obligate the Fund to deliver an amount of foreign currency materially in excess of the value of its portfolio securities or other assets denominated in that currency.

■ **Futures Contracts.** The Fund may enter into futures contracts. Futures contracts are a type of derivative instrument that obligate the purchaser to take delivery of, or cash settle a specific amount of, a commodity, security or other obligation underlying the contract at a specified time in the future for a specified price. Likewise, the seller incurs an obligation to deliver the specified amount of the underlying obligation against receipt of the specified price. Futures are traded on both U.S. and foreign commodities exchanges. The purchase of futures can serve as a long hedge, and the sale of futures can serve as a short hedge. <br> No price is paid upon entering into a futures contract. Instead, at the inception of a futures contract, the Fund is required to deposit "initial margin" consisting of cash, U.S. Government securities, suitable money market instruments, or liquid, high-grade debt securities in an amount set by the exchange on which the contract is traded and varying based on the volatility of the underlying asset. Margin must also be deposited when writing a call or put option on a futures contract, in accordance with applicable exchange rules. Unlike margin in securities transactions, initial margin on futures contracts does not represent a borrowing, but rather is in the nature of a performance bond or good-faith deposit that is returned to the Fund at the termination of the transaction if all contractual obligations have been satisfied. Under certain circumstances, such as periods of high volatility, the Fund may be required by a futures exchange to increase the level of its initial margin payment, and initial margin requirements might be increased generally in the future by regulatory action. Subsequent "variation margin" payments (sometimes referred to as "maintenance margin" payments) are made to and from the futures broker daily as the value of the futures position varies, a process known as "marking-to-market." Variation margin does not involve borrowing, but rather represents a daily settlement of the Fund's obligations to or from a futures broker. When the Fund purchases or sells a futures contract, it is subject to daily, or even intraday, variation margin calls that could be substantial in the event of adverse price movements. If the Fund has insufficient cash to meet daily or intraday variation margin requirements, it might need to sell securities at a time when such sales are disadvantageous. <br> Purchasers and sellers of futures contracts can enter into offsetting closing transactions, by selling or purchasing, respectively, an instrument identical to the instrument purchased or sold. Positions in futures contracts may be closed only on a futures exchange or board of trade that trades that contract. The Fund intends to enter into futures contracts only on exchanges or boards of trade where there appears to be a liquid secondary market. However, there can be no assurance that such a market will exist for a particular contract at a particular time. In such event, it may not be possible to close a futures contract. <br> Although many futures contracts by their terms call for the actual delivery or acquisition of the underlying asset, in most cases the contractual obligation is fulfilled before the date of the contract without having to make or take delivery of the securities or currency. The offsetting of a contractual obligation is accomplished by buying (or selling, as appropriate) on a commodities exchange an identical futures contract calling for delivery in the same month. Such a transaction, which is effected through a member of an exchange, cancels the obligation to make or take delivery of the securities or currency. Since all transactions in the futures market are made, offset or fulfilled through a clearinghouse associated with the exchange on which the contracts are traded, the Fund will incur brokerage fees when it purchases or sells futures contracts. If an offsetting purchase price is less than the original sale price, the Fund realizes a capital gain, or if it is more, the Fund realizes a capital loss. Conversely, if an offsetting sell price is more than the original purchase price, the Fund realizes a capital gain, or if it is less, the Fund realizes a capital loss. The Fund has no current intent to accept physical delivery in connection with the settlement of futures contracts. <br> Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price; once that limit is reached, no trades may be made that day at a price beyond the limit. Daily price limits do not limit potential losses because prices could move to the daily limit for several consecutive days with little or no trading, thereby preventing liquidation of unfavorable positions. If the Fund were unable to liquidate a futures contract due to the absence of a liquid secondary market or the imposition of price limits, it could incur substantial losses. The Fund would continue to be subject to market risk with respect to the position. In addition, the Fund would continue to be required to make daily variation margin payments and might be required to maintain the position being hedged by the futures contract or option thereon or to maintain cash or securities in a segregated account. <br> The ordinary spreads between prices in the cash and futures markets, due to differences in the nature of those markets, are subject to distortions. First, all participants in the futures market are subject to initial deposit and variation margin requirements. Rather than meeting additional variation margin deposit requirements, investors may close futures contracts through offsetting transactions that could distort the normal relationship between the cash and futures markets. Second, the liquidity of the futures market depends on participants entering into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity in the futures market could be reduced, thus producing distortion. Third, from the point of view of speculators, the margin deposit requirements in the futures market are less onerous than margin requirements in the securities market. Therefore, increased participation by speculators in the futures market may cause temporary price distortions. Due to the possibility of distortion, a correct forecast of securities price or currency exchange rate trends by a sub-advisor may still not result in a successful transaction. <br> Futures contracts also entail other risks. Although the use of such contracts may benefit the Fund, if investment judgment about the general direction of, for example, an index is incorrect, the Fund's overall performance would be worse than if it had not entered into any such contract. There are differences between the securities and futures markets that could result in an imperfect correlation between the markets, causing a given transaction not to achieve its objectives. The degree of imperfection of correlation depends on circumstances such as variations in speculative market demand for futures, including technical influences in futures trading, and differences between the financial instruments being hedged and the instruments underlying the standard contracts available for trading in such respects as interest rate levels, maturities, and creditworthiness of issuers. A decision as to whether, when and how to hedge involves the exercise of skill and judgment, and even a well-conceived hedge may be unsuccessful to some degree because of market behavior or unexpected interest rate trends.

■ **Rights** **.** Rights are options to purchase an issuer's securities at a stated price during a stated term, usually at a price below the initial offering price of the securities and before the securities are offered to the general public. Rights are similar to warrants but typically have a shorter duration. Rights are usually freely transferable, but may not be as liquid as exchange-traded options. In addition, the terms of a right may limit the Fund's ability to exercise the right at such time, or in such quantities, as the Fund would otherwise wish. Rights usually have no voting rights, pay no dividends and

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have no rights with respect to the assets of the corporation issuing them. A right ceases to have value if it is not exercised prior to its expiration date. As a result, rights may be considered more speculative than certain other types of investments.

■ **Swap Agreements.** A swap is a transaction in which the Fund and a counterparty agree to pay or receive payments at specified dates based upon or calculated by reference to changes in specified prices or rates (e.g., interest rates in the case of interest rate swaps) or the performance of specified securities or indices based on a specified amount (the "notional" amount). Nearly any type of derivative, including forward contracts, can be structured as a swap. See "Derivatives" for a further discussion of derivatives risks. Swap agreements can be structured to provide exposure to a variety of different types of investments or market factors. For example, in an interest rate swap, fixed-rate payments may be exchanged for floating rate payments; in a currency swap, U.S. dollar-denominated payments may be exchanged for payments denominated in a foreign currency; and in a total return swap, payments tied to the investment return on a particular asset, group of assets or index may be exchanged for payments that are effectively equivalent to interest payments or for payments tied to the return on another asset, group of assets, or index. Swaps may have a leverage component, and adverse changes in the value or level of the underlying asset, reference rate or index can result in gains or losses that are substantially greater than the amount invested in the swap itself. Some swaps currently are, and more in the future will be, centrally cleared. Swaps that are centrally-cleared are exposed to the creditworthiness of the clearing organizations (and, consequently, that of their members - generally, banks and broker-dealers) involved in the transaction. For example, an investor could lose margin payments it has deposited with the clearing organization as well as the net amount of gains not yet paid by the clearing organization if it breaches its agreement with the investor or becomes insolvent or goes into bankruptcy. In the event of bankruptcy of the clearing organization, the investor may be able to recover only a portion of the net amount of gains on its transactions and of the margin owed to it, potentially resulting in losses to the investor. Swaps that are not centrally cleared involve the risk that a loss may be sustained as a result of the insolvency or bankruptcy of the counterparty or the failure of the counterparty to make required payments or otherwise comply with the terms of the agreement. If a counterparty's creditworthiness declines, the value of the swap might decline, potentially resulting in losses to the Fund. Changing conditions in a particular market area, whether or not directly related to the referenced assets that underlie the swap agreement, may have an adverse impact on the creditworthiness of a counterparty. To mitigate this risk, the Fund will only enter into swap agreements with counterparties considered by a sub-advisor to present minimum risk of default, and the Fund normally obtains collateral to secure its exposure. Swaps involve the risk that, if the swap declines in value, additional margin would be required to maintain the margin level. The seller may require the Fund to deposit additional sums to cover this, and this may be at short notice. If additional margin is not provided in time, the seller may liquidate the positions at a loss, which may cause the Fund to owe money to the seller. The centrally cleared and OTC swap agreements into which the Fund enters normally provide for the obligations of the Fund and its counterparty in the event of a default or other early termination to be determined on a net basis. Similarly, periodic payments on a swap transaction that are due by each party on the same day normally are netted. The use of swap agreements requires special skills, knowledge and investment techniques that differ from those required for normal portfolio management. Swaps may be considered illiquid investments, and the Fund may be unable to sell a swap agreement to a third party at a favorable price; see "Illiquid and Restricted Securities" for a description of liquidity risk.

■  ***Currency Swaps.*** A currency swap involves the exchange of payments denominated in one currency for payments denominated in another. Payments are based on a notional principal amount, the value of which is fixed in exchange rate terms at the swap's inception. Currency swap agreements may be entered into on a net basis or may involve the delivery of the entire principal value of one designated currency in exchange for the entire principal value of another designated currency. In such cases, the entire principal value of a currency swap is subject to the risk that the counterparty will default on its contractual delivery obligations. Currency swaps are subject to currency risk.

■ **Warrants.** Warrants are options to purchase an issuer's securities at a stated price during a stated term, usually at a price below the initial offering price of the securities and before the securities are offered to the general public. If the market price of the underlying common stock does not exceed the warrant's exercise price during the life of the warrant, the warrant will expire worthless. As a result, warrants may be considered more speculative than certain other types of investments. Warrants usually have no voting rights, pay no dividends and have no rights with respect to the assets of the corporation issuing them. The percentage increase or decrease in the value of a warrant may be greater than the percentage increase or decrease in the value of the underlying common stock. Warrants may be purchased with values that vary depending on the change in value of one or more specified indices ("index warrants"). Index warrants are generally issued by banks or other financial institutions and give the holder the right, at any time during the term of the warrant, to receive upon exercise of the warrant a cash payment from the issuer based on the value of the underlying index at the time of the exercise. Warrants may also be linked to the performance of oil and/or the GDP of specific frontier and emerging markets. Warrants are usually freely transferable, but may not be as liquid as exchange-traded options, and the market for warrants may be very limited and it may be difficult to sell them promptly at an acceptable price.

**Equity Investments —** The Fund may invest in the following equity securities:

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

■ **Depositary Receipts.** The Fund may invest in depositary receipts, which represent ownership interests in securities of foreign companies (an "underlying issuer") that have been deposited with a bank or trust and that trade on an exchange or OTC. Depositary receipts may not be denominated in the same currency as the securities into which they may be converted, and they are subject to the risk of fluctuation in the currency exchange rate. Investing in depositary receipts entails substantially the same risks as direct investment in foreign securities. There is generally less publicly available information about foreign companies and there may be less governmental regulation and supervision of foreign stock exchanges, brokers, and listed companies. In addition, such companies may use different accounting and financial standards (and certain currencies may become

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unavailable for transfer from a foreign currency), resulting in the Fund's possible inability to convert immediately into U.S. currency proceeds realized upon the sale of portfolio securities of the affected foreign companies. In addition, the issuers of unsponsored depositary receipts are not obligated to disclose material information about the underlying securities to investors in the United States. Ownership of unsponsored depositary receipts may not entitle the Fund to the same benefits and rights as ownership of a sponsored depositary receipt or the underlying security. Please see "Foreign Securities" below for a description of the risks associated with investments in foreign securities. The Fund may invest in the following type of depositary receipts:

■  ***ADRs.*** ADRs are depositary receipts for foreign issuers in registered form, typically issued by a U.S. financial institution, traded in U.S. securities markets.

■  ***EDRs.*** EDRs, which are sometimes called Continental Depositary Receipts, are issued in Europe in bearer form and are traded in European securities markets.

■  ***GDRs.*** GDRs are in bearer form and traded in both the U.S. and European securities markets.

■ **Income Deposit Securities** **.** The Fund may purchase IDSs. Each IDS represents two separate securities, shares of common stock and subordinated notes issued by the same company, that are combined into one unit that trades like a stock on an exchange. Holders of IDSs receive dividends on the common shares and interest at a fixed rate on the subordinated notes to produce a blended yield. An IDS is typically listed on a stock exchange, but the underlying securities typically are not listed on the exchange until a period of time after the listing of the IDS or upon the occurrence of certain events (e.g., a change of control of the issuer of the IDS). When the underlying securities are listed, the holders of IDSs generally have the right to separate the components of the IDSs and trade them separately.

There may be a thinner and less active market for IDSs than that available for other securities. The value of an IDS will be affected by factors generally affecting common stock and subordinated debt securities, including the issuer's actual or perceived ability to pay interest and principal on the notes and pay dividends on the stock.

The federal income tax treatment of IDSs is not entirely clear and there is no authority that directly addresses the tax treatment of securities with terms substantially similar to IDSs. Among other things, although it is expected that the subordinated notes portion of an IDS will be treated as debt, if it is characterized as equity rather than debt, then interest paid on the notes could be treated as dividends (to the extent paid out of the issuer's earnings and profits).

■ **Income Trusts.** The Fund may invest in shares of income trusts, including Canadian royalty trusts. An income trust is an investment trust which holds income-producing assets and generally distributes the income generated by such assets on to its security holders. Income trusts also may include royalty trusts, a particular type of income trust whose securities are listed on a stock exchange and which controls an underlying company whose business relates to, without limitation, the acquisition, exploitation, production and sale of oil and natural gas. The main attraction of an income trust is its ability to generate constant cash flows. Income trusts have the potential to deliver higher yields than bonds. During periods of low interest rates, income trusts may achieve higher yields compared with cash investments. During periods of increasing rates, the opposite may be true. Income trusts may experience losses during periods of both low and high interest rates.

Income trusts generally are structured to avoid income taxes at the entity level. In a traditional corporate tax structure, net income is taxed at the corporate level and again when distributed as dividends to its shareholders. Under current law, an income trust, if properly structured, should not be subject to federal income tax. This flow-through structure means that the distributions to income trust investors are generally higher than dividends from an equivalent corporate entity.

Despite the potential for attractive regular payments, income trusts are equity investments, not fixed-income securities, and they share many of the risks inherent in stock ownership, including operating risk based on the income trusts' underlying assets and their respective businesses. Such risks may include lack of, or limited, operating histories. In addition, an income trust may lack diversification and potential growth may be sacrificed because revenue is passed on to security holders, rather than reinvested in the business. Because income trusts may pay out more than their net income, the unitholder equity (capital) may decline over time. Income trusts often grow through acquisition of additional assets, funded through the issuance of additional equity or, where the trust is able, additional debt. Income trusts do not guarantee minimum distributions or even return of capital; therefore, if the business of a trust starts to lose money, the trust can reduce or even eliminate distributions. The tax structure of income trusts described above, which would allow income to flow through to investors and be taxed only at the investor level, could be challenged under existing law, or the tax laws could change. Royalty trusts and income trusts frequently are found in Canada, and an investment in a Canadian trust will be subject to certain additional risks of investing in foreign securities.

■ **Initial Public Offerings.** The Fund can invest in IPOs. By definition, securities issued in IPOs have not traded publicly until the time of their offerings. Special risks associated with IPOs may include, among others, the fact that there may only be a limited number of shares available for trading. The market for those securities may be unseasoned. The issuer may have a limited operating history. These factors may contribute to price volatility. The limited number of shares available for trading in some IPOs may also make it more difficult for the Fund to buy or sell significant amounts of shares without an unfavorable impact on prevailing prices. In addition, some companies initially offering their shares publicly are involved in relatively new industries or lines of business, which may not be widely understood by investors. Some of the companies involved in new industries may be regarded as developmental state companies, without revenues or operating income, or the near-term prospects of them. Many IPOs are by small- or micro-cap companies that are undercapitalized. IPOs may adversely impact the Fund's performance. However, the impact of IPOs on the Fund's performance will likely decrease as the Fund's asset size increases.

■ **Master Limited Partnerships.** The Fund may invest in publicly traded partnerships such as MLPs. MLPs issue units that are registered with the SEC and are freely tradable on a securities exchange or in the OTC market. An MLP may have one or more general partners, who conduct the business, and one or more limited partners, who contribute capital. The general partner or partners are jointly and severally responsible for the liabilities of the MLP. An MLP also may be an entity similar to a limited partnership, such as an LLC, which has one or more managers or managing members and non-managing members (who are like limited partners). The Fund will invest in an MLP as a limited partner, and normally would not be liable for the debts of an MLP beyond the amount that the Fund has invested therein. However, as a limited partner, the Fund would not be shielded to the same

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extent that a stockholder of a corporation would be. In certain instances, creditors of an MLP would have the right to seek a return of capital that had been distributed to a limited partner. This right of an MLP's creditors would continue even after the Fund had sold its investment in the partnership. Holders of MLP units have more limited rights to vote on matters affecting the partnership than owners of common stock. MLPs typically invest in real estate and oil and gas equipment leasing assets, but they also finance entertainment, research and development, and other projects.

**ESG Considerations** — Environmental, social, and/or governance ("ESG") considerations, either quantitative or qualitative, may be utilized as a component of the Fund's investment process to implement its investment strategies. Since ESG considerations are not the only component that may be evaluated by a sub-advisor, the issuers in which the Fund invests may not be considered ESG issuers or have good ESG ratings. To the extent that the Fund utilizes such considerations as a component of the Fund's investment process, the Fund's performance may be affected depending on whether such considerations are in or out of favor and relative to similar funds that do not include such considerations in the investment process. There is no guarantee that the utilization of ESG considerations will be additive to the Fund's performance. ESG considerations may vary across types of investments and issuers, and not every such consideration may be identified, evaluated, or evaluated in the same manner. ESG norms also differ by country and region, and an issuer's ESG practices or a sub-advisor's assessment process of such considerations may change over time. There are significant differences in interpretations of what it means for a company to have good ESG characteristics, and the Fund may underperform other funds that use different considerations and/or a different methodology in evaluating such considerations. Information used by the Fund to evaluate such considerations, including the use of third-party research, if any, may not be readily available, complete or accurate, and may vary across third-party research providers and issuers, which could negatively impact the Fund's ability to accurately assess an issuer. As investors can differ in their views regarding the meaning of ESG considerations, the Fund may invest in companies that do not reflect the beliefs and values of any particular investor. The regulatory landscape with respect to ESG investing in the United States is still developing, and future rules and regulations may require the Fund to modify or alter its investment process with respect to the use of such considerations.

**Expense Risk** — Fund expenses are subject to a variety of factors, including fluctuations in the Fund's net assets. Accordingly, actual expenses may be greater or less than those indicated. For example, to the extent that the Fund's net assets decrease due to market declines or redemptions, the Fund's expenses will increase as a percentage of Fund net assets. During periods of high market volatility, these increases in the Fund's expense ratio could be significant.

**Fixed-Income Investments** — The Fund may hold debt instruments, including government and corporate debt instruments, and other fixed-income securities, including derivative instruments that have fixed-income securities as reference assets. Typically, the values of fixed-income securities change inversely with prevailing interest rates. Therefore, a fundamental risk of fixed-income securities is interest rate risk, which is the risk that their value will generally decline as prevailing interest rates rise, which may cause the Fund's 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. However, calculations of maturity and duration may be based on estimates and may not reliably predict a security's price sensitivity to changes in interest rates. In addition, different interest rate measures (such as short- and long-term interest rates and U.S. and non-U.S. interest rates), or interest rates on different types of securities or securities of different issuers, may not necessarily change in the same amount or in the same direction. Investments in fixed-income securities with very low or negative interest rates may diminish the Fund's yield and performance. Conversely, if rising interest rates cause the Fund to lose value, the Fund could face increased shareholder redemptions, which may lead to increased portfolio turnover and transaction costs. An increase in shareholder redemptions could also force the Fund to liquidate investments at disadvantageous times or prices, therefore adversely affecting the Fund as well as the value of your investment. For fixed-income securities with variable or floating rates, the interest rates reset when the specified index or reference rate changes. 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 or unwilling to make timely principal and interest payments and that the security may go into default. In addition, there is prepayment risk, which is the risk that during periods of falling interest rates, certain fixed-income securities with higher interest rates, such as mortgage- and asset-backed securities, may be prepaid by their issuers thereby reducing the amount of interest payments. This is similar to call risk, which is the risk that the issuer of a debt security may repay the security early. This may result in the Fund not enjoying the increase in the security's market price that usually accompanies a decline in rates, and also having to reinvest its proceeds in lower yielding securities. Fixed-income securities may also be subject to valuation risk and liquidity risk. Valuation risk is the risk that one or more of the fixed-income securities in which the Fund invests are priced differently than the value realized upon such security's sale. In times of market instability, valuation may be more difficult. Liquidity risk is the risk that fixed-income securities may be difficult or impossible to sell at the time that the Fund would like or at the price a sub-advisor believes the security is currently worth. To the extent the Fund invests in fixed-income securities in a particular industry or economic sector, its share values may fluctuate in response to events affecting that industry or sector.

Securities underlying mortgage- and asset-backed securities, which may include subprime mortgages, also may be subject to a higher degree of credit risk, valuation risk, and liquidity risk. To the extent that the Fund invests in derivatives tied to fixed-income securities, such Fund may be more substantially exposed to these risks than a portfolio that does not invest in such derivatives.

Fixed-income securities are also subject to market risk. The market for certain fixed-income securities may become illiquid under adverse market or economic conditions independent of any specific adverse changes in the conditions of a particular issuer. Recent and potential future changes in government monetary policy may also affect the level of interest rates. The Fund may be subject to heightened interest rate risk in times of monetary policy change and uncertainty, such as when the Federal Reserve ends a quantitative easing program and/or raises interest rates. The end of quantitative easing and/or rising interest rates may expose fixed-income markets to increased volatility and may reduce the liquidity of certain investments. These developments could cause the Fund's NAV to fluctuate or make it more difficult for the Fund to accurately value its securities. The amount of assets deemed illiquid remaining within the Fund may also increase, making it more difficult to meet shareholder redemptions and further adversely affecting the value of the Fund.

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In addition, specific types of fixed-income securities in which the Fund may invest are subject to the risks described elsewhere in this SAI. See "High-Yield Bonds" disclosure below for the risks associated with low-quality, high-risk corporate bonds, a type of fixed-income security.

**Foreign Securities** — The Fund may invest in U.S. dollar-denominated and non-U.S. dollar-denominated equity and debt securities of foreign issuers and foreign branches of U.S. banks, including negotiable 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 are intended to reduce risk by providing further diversification, such investments involve sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks may include: the possibility of adverse political and economic developments (including political or social instability, nationalization, expropriation, or confiscatory taxation), the impact of economic, political, social, diplomatic or other conditions or events (including, for example, military confrontations and actions, war, other conflicts, terrorism, and disease/virus outbreaks and epidemics); the potentially adverse effects of unavailability of public information regarding issuers, less or less reliable information about the securities and business operations of foreign issuers, less 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 purchases, tracking and custody; the difficulty of predicting international trade patterns and the possibility of exchange controls or limitations on the removal of funds or assets; the impact of economic, political, social, diplomatic or other conditions or events (including, for example, military confrontations and actions, war, other conflicts, terrorism, and disease/virus outbreaks and epidemics); and possibly more limited legal remedies and access to the courts available to enforce the Fund's 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.

Foreign stock markets are generally not as developed or efficient as, and may be more volatile than, those in the United States. While growing in volume, they usually have substantially less trading volume than U.S. markets. As a result, foreign securities may trade with less frequency and in less volume than domestic securities and therefore may exhibit greater or lower price volatility. The Fund may be exposed to risks in the process of clearing and settling trades and the holding of securities by foreign banks, agents and depositories. Governments or trade groups may compel local agents to hold securities in designated depositories that are not subject to independent evaluation. Additional costs associated with an investment in foreign securities may include higher custodial fees than apply to domestic custody arrangements and transaction costs of foreign currency conversions. Investments in emerging markets may be subject to greater custody risks than investments in more developed markets. Foreign markets also have different clearance and settlement procedures. In certain markets, there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. Delays in settlement could result in temporary periods when a portion of the assets of the Fund is not invested and no return is earned thereon. The inability of the Fund to make intended security purchases due to settlement problems could cause the Fund to miss attractive investment opportunities. Inability to dispose of portfolio securities due to settlement problems could result in losses to the Fund due to subsequent declines in value of the securities or, if the Fund has entered into a contract to sell the securities, could result in possible liability to the purchaser. In addition, certain foreign markets may institute share blocking, which is a practice under which an issuer's securities are blocked from trading at the custodian or sub-custodian level for a specified number of days before and, in certain instances, after a shareholder meeting where a vote of shareholders takes place. The blocking period can last up to several weeks. Share blocking may prevent the Fund from buying or selling securities during this period, because during the time shares are blocked, trades in such securities will not settle. It may be difficult or impossible to lift blocking restrictions, with the particular requirements varying widely by country. As a consequence of these restrictions, the sub-advisor, on behalf of the Fund, may elect not to vote proxies in markets that require share blocking. Interest rates prevailing in other countries may affect the prices of foreign securities and exchange rates for foreign currencies. Local factors, including the strength of the local economy, the demand for borrowing, the government's fiscal and monetary policies, and the international balance of payments, often affect interest rates in other countries.

Economic sanctions and other similar governmental actions could, among other things, effectively restrict or eliminate the Fund's ability to purchase or sell foreign securities, and thus may prevent the Fund from making investments or make the Fund's investments in such securities less liquid or more difficult to value. In addition, as a result of economic sanctions, the Fund may be forced to sell or otherwise dispose of investments at inopportune times or prices, which could result in losses to the Fund and increased transaction costs. These conditions may be in place for a substantial period of time and enacted with limited advance notice to the Fund. The risks posed by sanctions against a particular foreign country, its nationals or industries or businesses within the country may be heightened to the extent the Fund invests significantly in the affected country or region or in issuers from the affected country that depend on global markets.

Investing in foreign currency denominated securities involves not only the special risks associated with investing in non-U.S. issuers, as described above, but also the additional risks of adverse changes in foreign exchange rates and investment or exchange control regulations, which could prevent cash from being brought back to the United States. Additionally, dividends and interest payable on foreign securities (and gains realized on disposition thereof) may be subject to foreign taxes, including taxes withheld from those payments. Some governments may impose a tax on purchases by foreign investors of certain securities that trade in their country. Countries may amend or revise their existing tax laws, regulations and/or procedures in the future, possibly with retroactive effect. Changes in or uncertainties regarding the laws, regulations or procedures of a country could reduce the after-tax profits of the Fund, directly or indirectly, including by reducing the after-tax profits of companies located in such countries in which the Fund invests, or result in unexpected tax liabilities for the Fund. Commissions on foreign securities exchanges are often at fixed rates and are generally higher than those negotiated commissions on U.S. exchanges, although a sub-advisor endeavors to achieve the most favorable net results on portfolio transactions.

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The Fund may also invest in foreign "market access" investments, such as participatory notes, low-exercise price options or warrants, equity-linked notes, or equity swaps. These investments may provide economic exposure to an issuer without directly holding its securities. For example, market access investments may be used where regulatory or exchange restrictions make it difficult or undesirable for the Fund to invest directly in an issuer's common stock. Use of market access investments may involve risks associated with derivative investments, which are discussed in "Derivatives." Market access investments can be either exchange-traded or over-the-counter. Certain market access investments can be subject to the credit risk of both the underlying issuer and a counterparty. Holders of certain market access investments might not have voting, dividend, or other rights associated with shareholders of the referenced securities. Holders of market access investments might not have any right to make a claim against an issuer or counterparty in the event of their bankruptcy or other restructuring. It may be more difficult or time consuming to dispose of certain market access investments than the referenced security.

The Fund may be subject to the risk that its share price may be exposed to arbitrage attempts by investors seeking to capitalize on differences in the values of foreign securities trading on foreign exchanges that may close before the time the Fund's net asset value is determined. If such arbitrage attempts are successful, the Fund's net asset value might be diluted.

The use of fair value pricing in certain circumstances may help deter such arbitrage activities. The effect of such fair value pricing is that foreign securities may not be priced on the basis of quotations from the primary foreign securities market in which they are traded, but rather may be fair valued. As such, fair value pricing is based on subjective judgment and it is possible that fair value may differ materially from the value realized on a sale of a foreign security. It is also possible that use of fair value pricing will limit an investment adviser's ability to implement the Fund's investment strategy (e.g., reducing the volatility of the Fund's share price) or achieve its investment objective. Redemption fees and the Fund's market timing and frequent trading policies and procedures also are intended to help deter arbitrage activities.

■ **Chinese Company Securities**. Investing in China, Hong Kong and Taiwan involves a high degree of risk and special considerations not typically associated with investing in other more established economies or securities markets. Such risks may include: (a) the risk of nationalization or expropriation of assets, or confiscatory taxation; (b) greater social, economic and political uncertainty (including the risk of war); (c) dependency on exports and the corresponding importance of international trade; (d) the increasing competition from Asia's other low-cost emerging economies; (e) greater price volatility, substantially less liquidity and significantly smaller market capitalization of securities markets, particularly in China; (f) currency exchange rate fluctuations and the lack of available currency hedging instruments; (g) higher rates of inflation; (h) controls on foreign investment and limitations on repatriation of invested capital and on the Fund's ability to exchange local currencies for U.S. dollars; (i) greater governmental involvement in and control over the economy, and greater intervention in the Chinese financial markets, such as the imposition of trading restrictions; (j) the risk that the Chinese government may decide not to continue to support economic reform programs currently in place and could return to the completely centrally planned economy that was in place prior to 1978; (k) the fact that Chinese companies, particularly those located in China, may be smaller, less seasoned and newly-organized; (l) the difference in, or lack of, auditing and financial reporting standards that may result in unavailability of material information about issuers, particularly in China; (m) the fact that statistical information regarding the Chinese economy may be inaccurate or not comparable to statistical information regarding the U.S. or other economies; (n) the less extensive, and still developing, regulation of the securities markets, business entities and commercial transactions; (o) the fact that the settlement period of securities transactions in foreign markets may be longer; (p) uncertainty surrounding the willingness and ability of the Chinese government to support the Chinese and Hong Kong economies and markets; (q) the risk that it may be more difficult or impossible, to obtain and/or enforce a judgment than in other countries; (r) the rapidity and erratic nature of growth, particularly in China, resulting in inefficiencies and dislocations; and (s) the risk that, because of the degree of interconnectivity between the economies and financial markets of China, Hong Kong and Taiwan, any sizable reduction in the demand for goods from China, or an economic downturn in China could negatively affect the economies and financial markets of Hong Kong and Taiwan, as well. <br> China's economy has transitioned from a rigidly central-planned state-run economy to one that has been only partially reformed by more market-oriented policies. Although the Chinese government has implemented economic reform measures, reduced state ownership of companies and established better corporate governance practices, a substantial portion of productive assets in China are still owned by the Chinese government. The government continues to exercise significant control in regulating industrial development and, ultimately, control over China's economic growth through the allocation of resources, controlling payment of foreign currency-denominated obligations, setting monetary policy and providing preferential treatment to particular industries or companies. China continues to limit direct foreign investments generally in industries deemed important to national interests. Foreign investment in domestic securities are also subject to substantial restrictions. <br> Some believe that China's currency is undervalued. Currency fluctuations could significantly affect China and its trading partners. China continues to exercise control over the value of its currency, rather than allowing the value of the currency to be determined by market forces. This type of currency regime may experience sudden and significant currency adjustments, which may adversely impact investment returns. <br> For decades, a state of hostility has existed between Taiwan and the People's Republic of China. Beijing has long deemed Taiwan a part of the "one China" and has made a nationalist cause of recovering it. This situation poses a threat to Taiwan's economy and could negatively affect its stock market. By treaty, China has committed to preserve Hong Kong's autonomy and its economic, political and social freedoms until 2047. However, if China would exert its authority so as to alter the economic, political or legal structures or the existing social policy of Hong Kong, investor and business confidence in Hong Kong could be negatively affected, which in turn could negatively affect markets and business performance. As demonstrated by protests in Hong Kong in 2019 and 2020 over political, economic, and legal freedoms, and the Chinese government's response to the protests, there continues to be a great deal of political unrest, which may result in economic disruption. China could be affected by military events on the Korean peninsula or internal instability within North Korea. North Korea and South Korea each have substantial military capabilities, and historical tensions between the two countries present the risk of war. Any outbreak of hostilities between the two countries could have a severe adverse effect on the South Korean economy and securities market. These situations may cause uncertainty in the Chinese market and may adversely affect performance of the Chinese economy. <br> Investment in China, Hong Kong and Taiwan is subject to certain political risks. The current political climate has intensified concerns about trade tariffs and a potential trade war between China and the United States, despite the United States signing a partial trade agreement with China that reduced some U.S. tariffs on Chinese goods while boosting Chinese purchases of American goods. However, this agreement left in place a number of existing tariffs, and it is unclear whether further trade agreements may be reached in the future. The ability and willingness of China to comply

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with the trade deal may determine to some degree the extent to which its economy will be adversely affected, which cannot be predicted at the present time. Future tariffs imposed by China and the United States on the other country's products, or other escalating actions, may trigger a significant reduction in international trade, the oversupply of certain manufactured goods, substantial price reductions of goods and possible failure of individual companies and/or large segments of China's export industry with a potentially negative impact to the Fund.<br>On June 3, 2021, President Biden issued an executive order prohibiting U.S. persons from entering into transactions in publicly traded securities, as well as derivatives and securities designed to provide investment exposure to, any securities of any issuers designated "Chinese Military-Industrial Complex Companies," as designated by the Department of the Treasury's Office of Foreign Assets Control. This executive order superseded a prior similar order from then-President Trump. Continued ownership of such securities by U.S. persons is prohibited after June 3, 2022, following a one-year divestment period. A number of Chinese issuers have been designated under this program and more could be added. Certain implementation matters related to the scope of, and compliance with, the executive order have not yet been resolved, and the ultimate application and enforcement of the executive order may change. Under current guidance, U.S. investors may purchase interests in an investment fund that does not make any new purchases of designated securities and is "seeking to" divest its holdings of such securities during the divestment period. As a result, the executive order and related guidance may significantly reduce the liquidity of such securities, force the Fund to sell certain positions at inopportune times or for unfavorable prices, and restrict future investments by the Fund. U.S. investment advisers are permitted to advise non-U.S. funds and non-U.S. persons that purchase and sell such prohibited securities, provided this activity does not indirectly expose U.S. persons to such companies. The Holding Foreign Companies Accountable Act ("HFCAA"), requires the SEC to identify reporting public companies that use public accounting firms with a branch or office located in a foreign jurisdiction that the Public Company Accounting Oversight Board ("PCAOB") determines that it is unable to inspect or investigate completely because of a position taken by a governmental entity in that jurisdiction ("Commission-Identified Issuers"). If an issuer is identified as a Commission-Identified Issuer for three consecutive years, the issuer's shares will be prohibited in U.S. exchange and over-the-counter markets. On March 8, 2022, pursuant to the implementing regulations established by the SEC as required by the HFCAA, the SEC began to identify companies as provisional Commission-Identified Issuers. Listing and other regulatory requirements applicable to foreign issuers, including Chinese issuers, is evolving and any future legislation, regulations or rules may require the Fund to change its investment process, which could result in substantial investment losses.<br>For purposes of raising capital offshore on exchanges outside of China, including on U.S. exchanges, many Chinese-based operating companies are structured as Variable Interest Entities ("VIEs"). In this structure, the Chinese-based operating company is the VIE and establishes an entity, which is typically offshore in a foreign jurisdiction, such as the Cayman Islands. The offshore entity lists on a foreign exchange and enters into contractual arrangements ("VIE Agreements") with the VIE. This structure allows Chinese companies, in particular those in which the government restricts foreign ownership to raise capital from foreign investors. While the offshore entity has no equity ownership of the VIE, these VIE Agreements permit the offshore entity to consolidate the VIE's financial statements with its own for accounting purposes and provide for economic exposure to the performance of the underlying Chinese-based operating company. Therefore, an investor in the listed offshore entity, such as the Fund, will have exposure to the Chinese-based operating company only through contractual arrangements and has no ownership in the Chinese-based operating company. Furthermore, because the offshore entity only has specific rights provided for in these VIE Agreements with the VIE, its abilities to control the activities at the Chinese-based operating company are limited and the Chinese-based operating company may engage in activities that negatively impact investment value. While the VIE structure has been widely adopted, it is not formally recognized under Chinese law and therefore there is a risk that the Chinese government could prohibit the existence of such structures or negatively impact the VIE's contractual arrangements with the listed offshore entity by making them invalid. If these VIE Agreements were found to be unenforceable under Chinese law, investors in the listed offshore entity, such as the Fund, may suffer significant losses with little or no recourse available. If the Chinese government determines that the VIE Agreements establishing the VIE structures do not comply with Chinese law and regulations, including those related to restrictions on foreign ownership, it could subject a Chinese-based issuer to penalties, revocation of business and operating licenses, or forfeiture of ownership interest. Any change in the operations of entities in a VIE structure, the status of VIE contractual arrangements or the legal or regulatory environment in China or in the U.S. could result in significant losses to the Fund. The listed offshore entity's control over a VIE may also be jeopardized if a natural person who holds the equity interest in the VIE breaches the terms of the VIE Agreement, is subject to legal proceedings or if any physical instruments for authenticating documentation, such as chops and seals, are used without the Chinese-based issuer's authorization to enter into contractual arrangements in China. Chops and seals, which are carved stamps used to sign documents, represent a legally binding commitment by the company. Moreover, any future regulatory action may affect the ability of the offshore entity to receive the economic benefits of the Chinese-based operating company, which may cause the value of the Fund's investment in the listed offshore entity to suffer a significant loss. For example, in 2021, the Chinese government placed various restrictions on after-school tutoring companies. Such restrictions adversely affected the financial performance of those listed offshore entities associated with a Chinese-based operating company in the after-school tutoring industry. There is no guarantee that the Chinese government will not place similar restrictions on other industries and therefore jeopardize the financial performance of the corresponding listed offshore entities.

■ **Eastern European and Russian Securities**. In addition to the risks listed under "Foreign Securities - Emerging Market Securities, " investing in Russian and other Eastern European issuers presents additional risks. Investing in the securities of Eastern European and Russian issuers is highly speculative and involves risks not usually associated with investing in the more developed markets of Western Europe, the U.S. or other developed countries. Political and economic reforms have not yet established a definite trend away from centrally planned economies and state-owned industries. Investments in Eastern European countries may involve risks of nationalization, expropriation, and confiscatory taxation. Many Eastern European countries continue to move towards market economies at different paces with different characteristics. Most Eastern European markets suffer from thin trading activity and less reliable investor protections. Additionally, because of less stringent auditing and financial reporting standards as compared to U.S. companies, there may be little reliable corporate information available to investors. As a result, it may be difficult to assess the value or prospects of an investment in Eastern European and Russian companies. Further, information and transaction costs, differential taxes, and sometimes political or transfer risk give a comparative advantage to the domestic investor rather than the foreign investor. In addition, these markets are particularly sensitive to social, political, economic, and currency events in Western Europe and Russia and may suffer heavy losses as a result of their trading and investment links to these economies and currencies. Additionally, Russia may continue to attempt to assert its influence in the region through economic or even military measures, as evidenced by its invasion of Ukraine in February 2022 and the ongoing

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conflict in that region.<br>The United States and the EU historically have imposed economic sanctions on certain Russian individuals and companies, including certain financial institutions, and have limited certain exports and imports to and from Russia. Sanctions, or even the threat of further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy. These sanctions could also result in the immediate freeze of Russian securities, either by issuer, sector or the Russian markets as a whole, impairing the ability of the Fund to buy, sell, receive or deliver those securities. In such circumstances, the Fund may be forced to liquidate non-restricted assets in order to satisfy shareholder redemptions. Such liquidation of Fund assets could result in the Fund receiving substantially lower prices for its securities. Sanctions could also result in Russia taking counter measures or retaliatory actions which may further impair the value and liquidity of Russian securities. As a result, the Fund's performance may be adversely affected. The potential impact of sanctions imposed in response to Russia's invasion of Ukraine in February 2022 are discussed below.<br>In some of the countries of Eastern Europe, there is no stock exchange or formal market for securities. Such countries may also have government exchange controls, currencies with no recognizable market value relative to the established currencies of Western market economies, little or no experience in trading in securities, no accounting or financial reporting standards, a lack of banking and securities infrastructure to handle such trading and a legal tradition that does not recognize rights in private property. Credit and debt issues and other economic difficulties affecting Western Europe and its financial institutions can negatively affect Eastern European countries.<br>Eastern European economies may also be particularly susceptible to the volatility of the international credit market due to their reliance on bank related inflows of foreign capital, and their continued dependence on the Western European zone for credit and trade. Accordingly, the European crisis may present serious risks for Eastern European economies, which may have a negative effect on the Fund's investments in the region.<br>Compared to most national stock markets, the Russian securities market suffers from a variety of problems not encountered in more developed markets. There is little long-term historical data on the Russian securities market because it is relatively new and a substantial proportion of securities transactions in Russia are privately negotiated outside of stock exchanges. The inexperience of the Russian securities market and the limited volume of trading in securities in the market may make obtaining accurate prices on portfolio securities from independent sources more difficult than in more developed markets. Poor accounting standards, inept management, pervasive corruption, insider trading and crime, and inadequate regulatory protection for the rights of all investors all may pose additional risks, including to foreign investors.<br>Because of the relatively recent formation of the Russian securities market as well as the underdeveloped state of the banking and telecommunications systems, settlement, clearing and registration of securities transactions are subject to significant risks not normally associated with securities transactions in the United States and other more developed markets. Prior to 2013, there was no central registration system for equity share registration in Russia and registration was carried out by either the issuers themselves or by registrars located throughout Russia. Such registrars were not necessarily subject to effective state supervision nor were they licensed with any governmental entity, thereby increasing the risk that the Fund could lose ownership of its securities through fraud, negligence, or even mere oversight. With the implementation of the National Settlement Depository ("NSD") in Russia as a recognized central securities depository, title to Russian equities is now based on the records of the NSD and not the registrars. Although the implementation of the NSD is generally expected to decrease the risk of loss in connection with recording and transferring title to securities, issues resulting in loss still might occur. In addition, issuers and registrars are still prominent in the validation and approval of documentation requirements for corporate action processing in Russia. Because the documentation requirements and approval criteria vary between registrars and/or issuers, there remain unclear and inconsistent market standards in the Russian market with respect to the completion and submission of corporate action elections. Significant delays or problems may occur in registering the transfer of securities, which could cause the Fund to incur losses due to a counterparty's failure to pay for securities the Fund has delivered or the Fund's inability to complete its contractual obligations because of theft or other reasons. To the extent that the Fund suffers a loss relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its rights or otherwise remedy the loss. In addition, there is the risk that the Russian tax system will not be reformed to prevent inconsistent, retroactive, and/or exorbitant taxation, or, in the alternative, the risk that a reformed tax system may result in the inconsistent and unpredictable enforcement of the new tax laws.

The Russian economy is heavily dependent upon the export of a range of commodities including most industrial metals, forestry products, oil, and gas. Accordingly, it is strongly affected by international commodity prices and is particularly vulnerable to any weakening in global demand for these products. Decreases in the price of commodities, which have in the past pushed the whole economy into recession, have demonstrated the sensitivity of the Russian economy to such price volatility. Russia continues to face significant economic challenges, including weak levels of investment and a sluggish recovery in external demand. Over the long-term, Russia faces challenges including a shrinking workforce, a high level of corruption, and difficulty in accessing capital for smaller, non-energy companies and poor infrastructure in need of large investments.

Foreign investors also face a high degree of currency risk when investing in Russian securities and a lack of available currency hedging instruments. In the past, the Russian ruble has been subject to significant devaluation pressure as a result of the imposition of sanctions by the United States and the European Union and the decline in commodity prices and the value of Russian exports. Although the Russian Central Bank has spent a significant amount of its foreign exchange reserves in an attempt to maintain the ruble's value, there is a risk of significant future devaluation. In addition, there is the risk that the Russian government may impose capital controls on foreign portfolio investments in the event of extreme financial or political crisis. Such capital controls may prevent the sale of a portfolio of foreign assets and the repatriation of investment income and capital. These risks may cause flight from the ruble into U.S. dollars and other currencies.

In February 2022, Russia launched a large-scale invasion of Ukraine. The outbreak of hostilities between the two countries could result in more widespread conflict and could have a severe adverse effect on the regional and the global financial markets and economies (including in Europe and the U.S.), companies in other countries (including those that have done business in Russia), and various sectors, industries and markets for securities and commodities. Actual and threatened responses to such military action have impacted, and may continue to impact, the markets for certain Russian commodities, such as oil and natural gas. In addition, tensions have increased between Russia's neighbors and Western countries, which may adversely affect the region's economic growth. Moreover, disruptions caused by Russian military action or other actions (including cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks on the Russian government, Russian companies or Russian individuals, including

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politicians, may impact Russia's economy and Russian issuers of securities in which the Fund invests. The extent and duration of the military action, the resulting sanctions or other punitive actions, and the resulting future market disruptions, are impossible to predict but have been and could continue to be significant.<br>Russia's actions have induced the United States and other countries (collectively, the "Sanctioning Bodies") to impose economic sanctions on Russia, Russian individuals, and Russian corporate and banking entities, which can consist of prohibiting certain securities trades and private transactions in the energy sector, asset freezes and prohibition of all business with such persons and entities. The sanctions have included a commitment by certain countries and the EU to remove selected Russian banks from the Society for Worldwide Interbank Financial Telecommunications, commonly called "SWIFT," the electronic network that connects banks globally, and the imposition of restrictive measures to prevent the Russian Central Bank from undermining the impact of the sanctions. A number of large corporations and U.S. states have also divested or announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. The Sanctioning Bodies may impose additional sanctions in the future. Such sanctions, or even the threat of further sanctions, may impact many sectors of the Russian economy and related markets. Current and potential future sanctions, or the threat of sanctions, and Russia's response, as discussed below, may cause any of the following: (a) a decline in the value and liquidity of Russian securities; (b) a weakening or devaluation of the ruble; (c) a downgrade in Russia's credit rating and/or its default on sovereign obligations; (d) increased volatility of Russian securities; (e) the immediate freeze of Russian securities and/or funds invested in prohibited assets; or (f) additional counter measures or retaliatory actions.<br>In response to the sanctions, the Russian Central Bank raised its interest rates, suspended the sales of Russian securities by non-residents of Russia on its local stock exchange, prohibited the repatriation of Russian assets by foreign investors, and barred Russian issuers from participating in depositary receipt programs. Russia may take additional countermeasures or retaliatory actions in the future, including, for example, restricting gas exports to other countries, seizing U.S. and European residents' assets, imposing capital controls to restrict movements of capital entering and existing the country, or undertaking or provoking other military conflict elsewhere in Europe.<br>The Russian invasion, sanctions in response, and any related events may adversely and significantly affect the performance of the Fund and its ability to achieve its investment objectives by restricting or prohibiting the Fund's ability to gain exposure to Russian issuers or other affected issuers. To the extent that the Fund has direct exposure to Russian or Eastern European issuers, these events may also make it difficult for the Fund to sell, receive or deliver securities or assets to realize the value of that exposure.

■ **Emerging Market Securities.** The Fund may invest in emerging market securities. The Fund may consider a country to be an emerging market country based on a number of factors including, but not limited to, if the country is classified as an emerging or developing economy by any supranational organization such as the World Bank, International Finance Corporation or the United Nations, or related entities, or if the country is considered an emerging market country for purposes of constructing emerging markets indices. Investments in emerging market country securities involve special risks. The economies, markets and political structures of a number of the emerging market countries in which the Fund can invest do not compare favorably with the United States and other mature economies in terms of wealth and stability. Therefore, investments in these countries may be riskier, and will be subject to erratic and abrupt price movements. These risks are discussed below. <br> *Economies:* The economies of emerging market countries may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross domestic product, rate of inflation, currency depreciation, reliable access to capital, capital reinvestment, resource self-sufficiency, balance of payments and trade difficulties. Some economies are less well developed and less diverse (for example, Latin America, Eastern Europe and certain Asian countries), and may be heavily dependent upon international trade, as well as the economic conditions in the countries with which they trade. Such economies accordingly have been, and may continue to be, adversely affected by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist or retaliatory measures imposed or negotiated by the countries with which they trade. Similarly, many of these countries have historically experienced, and may continue to experience, high rates of inflation, high interest rates, exchange rate fluctuations, large amounts of national and external debt, severe recession, and extreme poverty and unemployment. The economies of emerging market countries may be based predominately on only a few industries or may be dependent on revenues from participating commodities or on international aid or developmental assistance. Emerging market economies may develop unevenly or may never fully develop. Investments in countries that have recently begun moving away from central planning and state-owned industries toward free markets, such as the Eastern European, Russian or Chinese economies, should be regarded as speculative. <br> *Governments:* Emerging markets may have uncertain national policies and social, political and economic instability. While government involvement in the private sector varies in degree among emerging market countries, such involvement may in some cases include government ownership of companies in certain sectors, wage and price controls or imposition of trade barriers and other protectionist measures. In the past, governments of such nations have expropriated substantial amounts of private property, and most claims of the property owners have never been fully settled. There is no assurance that such expropriations will not reoccur. In addition, there is no guarantee that some future economic or political crisis will not lead to price controls, forced mergers of companies, confiscatory taxation or creation of government monopolies to the possible detriment of the Fund's investments. In such event, it is possible that the Fund could lose the entire value of its investments in the affected markets. <br> Emerging market countries may have national policies that limit the Fund's investment opportunities such as restrictions on investment in issuers or industries deemed sensitive to national interests. Repatriation of investment income, capital and the proceeds of sales by foreign investors may require governmental registration and/or approval in some emerging market countries. In addition, if the Fund invests in a market where restrictions are considered acceptable, a country could impose new or additional repatriation restrictions after investment that are unacceptable. This might require, among other things, applying to the appropriate authorities for a waiver of the restrictions or engaging in transactions in other markets designed to offset the risks of decline in that country. Further, some attractive securities may not be available, or may require a premium for purchase, due to foreign shareholders already holding the maximum amount legally permissible. In addition to withholding taxes on investment income, some countries with emerging capital markets may impose differential capital gain taxes on foreign investors. <br> An issuer or governmental authority that controls the repayment of an emerging market country's debt may not be able or willing to repay the principal and/or interest when due in accordance with the terms of such debt. A debtor's willingness or ability to repay principal and interest due in a timely manner may be affected by, among other factors, its cash flow situation, and, in the case of a government debtor, the extent of its foreign reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole and the political constraints to which a government debtor may be subject. Government debtors may default on their debt and may also be

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dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce principal and interest arrearages on their debt. Holders of government debt may be requested to participate in the rescheduling of such debt and to extend further loans to government debtors. There may be limited legal recourse against the issuer and/or guarantor. Remedies must, in some cases, be pursued in the courts of the defaulting party itself, and the ability of the holder of foreign government fixed-income securities to obtain recourse may be subject to the political climate in the relevant country. In addition, no assurance can be given that the holders of commercial bank debt will not contest payments to the holders of other foreign government debt obligations in the event of default under their commercial bank loan agreements.<br>*Capital Markets:* The capital markets in emerging market countries may be underdeveloped. They may have 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. Emerging market securities may be substantially less liquid and more volatile than those of mature markets, and securities may be held by a limited number of investors. This may adversely affect the timing and pricing of the Fund's acquisition or disposal of securities. There may be less publicly available information about emerging markets than would be available in more developed capital markets, and 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. In certain countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment measurements used in the U.S., may not be applicable. Investing in certain countries with emerging capital markets may entail purchasing securities issued by or on behalf of entities that are insolvent, bankrupt, in default or otherwise engaged in an attempt to reorganize or reschedule their obligations, and in entities that have little or no proven credit rating or credit history. In any such case, the issuer's poor or deteriorating financial condition may increase the likelihood that the investing Fund will experience losses or diminution in available gains due to bankruptcy, insolvency or fraud. There may also be custodial restrictions or other non-U.S. or U.S. governmental laws or restrictions applicable to investments in emerging market countries.<br>Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those in developed markets, in part because the Fund may use brokers and counterparties that are less well capitalized, and custody and registration of assets in some countries may be unreliable. Supervisory authorities also may be unable to apply standards comparable to those in developed markets. Thus, there may be risks that settlement may be delayed and that cash or securities belonging to the Fund may be in jeopardy because of failures of or defects in the systems. In particular, market practice may require that payment be made before receipt of the security being purchased or that delivery of a security be made before payment is received. In such cases, default by a broker or bank (the "counterparty") through whom the transaction is effected might cause the Fund to suffer a loss. There can be no certainty that the Fund will be successful in eliminating counterparty risk, particularly as counterparties operating in emerging market countries frequently lack the substance or financial resources of those in developed countries. There may also be a danger that, because of uncertainties in the operation of settlement systems in individual markets, competing claims may arise with respect to securities held by or to be transferred to the Fund.<br>Regulatory authorities in some emerging markets currently do not provide the Public Company Accounting Oversight Board with the ability to inspect public accounting firms as required by U.S. law, including sufficient access to inspect audit work papers and practices, or otherwise do not cooperate with U.S. regulators, which potentially could expose investors to significant risks.<br>*Legal Systems:* Investments in emerging market countries may be affected by the lack, or relatively early development, of legal structures governing private and foreign investments and private property. Such capital markets are emerging in a dynamic political and economic environment brought about by events over recent years that have reshaped political boundaries and traditional ideologies. Many emerging market countries have little experience with the corporate form of business organization and may not have well-developed corporation and business laws or concepts of fiduciary duty in the business context. The organizational structures of certain issuers in emerging markets may limit investor rights and recourse.<br>The Fund may encounter substantial difficulties in obtaining and enforcing judgments against individuals and companies located in certain emerging market countries, either individually or in combination with other shareholders. It may be difficult or impossible to obtain or enforce legislation or remedies against governments, their agencies and sponsored entities. Additionally, in certain emerging market countries, fraud, corruption and attempts at market manipulation may be more prevalent than in developed market countries. Shareholder claims that are common in the U.S. and are generally viewed as determining misconduct, including class action securities law and fraud claims, generally are difficult or impossible to pursue as a matter of law or practicality in many emerging markets.<br>The laws in certain countries with emerging capital markets may be based upon or be highly influenced by religious codes or rules. The interpretation of how these laws apply to certain investments may change over time, which could have a negative impact on those investments and the Fund.<br>Russia launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting future market disruptions, including declines in its stock markets and the value of the ruble against the U.S. dollar, are impossible to predict, but could be significant. Any such disruptions caused by Russian military action or other actions (including cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia's economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian companies, may impact Russia's economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such military action may also impact the markets for certain Russian commodities, such as oil and natural gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such sectors globally, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact a Fund's performance and the value of an investment in the Fund, even if the Fund does not have direct exposure to Russian issuers or issuers in other countries affected by the invasion.<br>Governments in the United States and many other countries (collectively, the "Sanctioning Bodies") have imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy. These sanctions could also result in the immediate freeze of Russian securities and/or funds invested in

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prohibited assets, impairing the ability of the Fund to buy, sell, receive or deliver those securities and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may further impair the value and liquidity of Russian securities.

■ **European Securities**. The Fund's performance may be affected by political, social and economic conditions in Europe, such as growth of economic output (the gross national product), the rate of inflation, the rate at which capital is reinvested into European economies, the success of governmental actions to reduce budget deficits, the resource self-sufficiency of European countries and conflict between European countries. Most developed countries in Western Europe are members of the European Union ("EU"), and many are also members of the European Economic and Monetary Union ("EMU" or "Eurozone"). The EMU is comprised of EU members that have adopted the euro currency. Member states relinquish control of their own monetary policies. The EMU requires Eurozone countries to comply with restrictions on interest rates, deficits, debt levels, and inflation rates; fiscal and monetary controls; and other factors, each of which may significantly impact every European country and their economic partners, including those countries that are not members of the EMU. Changes in imports or exports, changes in governmental or EU regulations on trade, changes in the exchange rate of the euro (the common currency of the EU), the threat of default or actual default by one or more EU member states on its sovereign debt, and/or an economic recession in one or more EU member states may have a significant adverse effect on the economies of other EU member states and their trading partners. <br> The European financial markets have experienced and may continue to experience volatility and adverse trends due to concerns relating to economic downturns; rising government debt levels and the possible default on government debt; national unemployment in several European countries, including, but not limited to, Austria, Belgium, Cyprus, France, Greece, Ireland, Italy, Portugal, Spain and Ukraine; and, most recently, the COVID-19 pandemic and the Russian invasion of Ukraine. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. Responses to financial problems by European governments, central banks, and others, including austerity measures and other reforms, may not produce the desired results, may result in social unrest and may limit future growth and economic recovery or may have unintended consequences. In addition, one or more countries may abandon the euro and/or withdraw from the EU. The impact of these actions, especially if they occur in a disorderly fashion, could be significant and far-reaching. <br> Many EU nations are susceptible to economic risks associated with high levels of debt. Non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts, and other issuers have faced difficulties obtaining credit or refinancing existing obligations. A default or debt restructuring by any European country could adversely impact holders of that country's debt and sellers of credit default swaps linked to that country's creditworthiness, which may be located in other countries. Such a default or debt restructuring could affect exposures to other EU countries and their companies as well. Further defaults on, or restructurings of, the debt of governments or other entities could have additional adverse effects on economies, financial markets and asset valuations around the world. <br> In addition, issuers have faced difficulties obtaining credit or refinancing existing obligations; financial institutions have in many cases required government or central bank support, have needed to raise capital and/or have been impaired in their ability to extend credit; and financial markets in Europe and elsewhere have experienced extreme volatility and declines in asset values and liquidity. Furthermore, certain EU countries have had to accept assistance from supranational agencies such as the International Monetary Fund, the European Stability Mechanism or others. The European Central Bank has also intervened to purchase Eurozone debt in an attempt to stabilize markets and reduce borrowing costs. There can be no assurance that any creditors or supranational agencies will continue to intervene or provide further assistance, and markets may react adversely to any expected reduction in the financial support provided by these creditors. <br> Certain European countries have experienced negative interest rates on certain fixed-income instruments. A negative interest rate is an unconventional central bank monetary policy tool where nominal target interest rates are set with a negative value (i.e., below zero percent) intended to help create self-sustaining growth in the local economy. Negative interest rates may result in heightened market volatility and may detract from the Fund's performance to the extent the Fund is exposed to such interest rates. <br> Secessionist movements, such as the Catalan separatist movement in Spain, the independence movement in Scotland, and the Flemish movement in Belgium, as well as government or other responses to such movements, may create instability and uncertainty in the region. In addition, the national politics of European countries have been unpredictable and subject to influence by disruptive political groups and ideologies. European governments may be subject to change and such countries may experience social and political unrest. Unanticipated or sudden political or social developments may result in sudden and significant investment losses. The occurrence of terrorist incidents throughout Europe also could impact financial markets. The impact of these or other events is not clear but could be significant and far-reaching and materially impact the value and liquidity of the Fund's investments. <br> Russia's war with Ukraine has negatively impacted European economic activity. The effects on the economies of European countries of the Russia/ Ukraine war and Russia's response to sanctions imposed by the U.S. and other countries are impossible to predict, but have been and could continue to be significant. For example, exports in Eastern Europe have been disrupted for certain key commodities, pushing commodity prices to record highs, and energy prices in Europe have increased significantly.

■ **Japan Investment Risk**. A significant portion of the Fund's total assets may be invested in the securities of Japanese issuers. The Fund is susceptible to changes in Japanese economic and political conditions, the reliability of financial information available concerning these issuers, and the legal, tax and regulatory environment surrounding these issuers. The Japanese economy is heavily dependent upon international trade and may be adversely affected by foreign trade policy, trade tariffs, embargos, boycotts and other protectionist measures, competition from emerging economies, changes in international trade, the economic conditions of its trading partners, strength of the yen, and regional and global conflicts. The domestic Japanese economy faces several concerns, including large government deficits and a shrinking workforce. In addition, the Japanese economic growth rate could be impacted by Bank of Japan monetary policies, rising interest rates, tax increases, budget deficits, consumer confidence and volatility in the Japanese yen. The Japanese government tax and fiscal policies may also have negative impacts on the Japanese economy. Currency fluctuations, which have been significant at times, can have a considerable impact on exports and the overall Japanese economy. Japan has, in the past, intervened in the currency markets to attempt to maintain or reduce the value of the yen. Japanese intervention in the currency markets could cause the value of the yen to fluctuate sharply and unpredictably and could cause losses to investors. Japan is located in a part of the world that has historically been prone to natural disasters such as earthquakes and tsunamis, which may have a significant impact on the business operations of Japanese companies in the affected regions and Japan's economy. Relations with its neighbors, particularly China, North Korea, South Korea and Russia, have at times been strained due to territorial disputes, historical animosities and defense concerns. Political tensions between Japan and its

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trading partners could adversely affect the economy, especially the export sector, and destabilize the region as a whole. Japan is also heavily dependent on oil and other commodity imports, and higher commodity prices could therefore have a negative impact on the Japanese economy. These and other factors could have a negative impact on the Fund's performance and increase the volatility of an investment in the Fund.

■ **Latin American Securities**.  Investments in securities of Latin American issuers involve risks that are specific to Latin America, including certain legal, regulatory, political and economic risks. Most Latin American countries have experienced, at one time or another, severe and persistent levels of inflation, including, in some cases, hyperinflation, as well as high interest rates. This has at time led to extreme government measures to keep inflation in check, and a generally debilitating effect on economic growth. Although inflation in many countries has lessened, there is no guarantee it will remain at lower levels. <br> Political Instability. Certain Latin American countries have historically suffered from social, political, and economic instability and volatility, currency devaluations, government defaults and high unemployment rates. For investors, this has meant additional risk caused by periods of regional conflict, political corruption, totalitarianism, protectionist measures, nationalization, hyperinflation, debt crises, sudden and large currency devaluation, and intervention by the military in civilian and economic spheres. However, in some Latin American countries, a move to sustainable democracy and a more mature and accountable political environment is under way. Domestic economies have been deregulated, privatization of state-owned companies is almost completed and foreign trade restrictions have been relaxed. Nonetheless, there can be no guarantee that such trends will continue or that the desired outcomes of these developments will be successful. In addition, to the extent that events such as those listed above continue in the future, they could reverse favorable trends toward market and economic reform, privatization, and removal of trade barriers, and result in significant disruption in securities markets in the region. Investors in the region continue to face a number of potential risks. Governments of many Latin American countries have exercised and continue to exercise substantial influence over many aspects of the private sector. Governmental actions in the future could have a significant effect on economic conditions in Latin American countries, which could affect the companies in which the Fund invests and, therefore, the value of Fund shares. Additionally, an investment in Latin America is subject to certain risks stemming from political and economic corruption, which may negatively affect the country or the reputation of companies domiciled in a certain country.   For certain countries in Latin America, political risks have created significant uncertainty in the financial markets and may further limit the economic recovery in the region. <br> Dependence on Exports and Economic Risk. Certain Latin American countries depend heavily on exports to the U.S., investments from a small number of countries, and trading relationships with key trading partners, including the U.S., Europe, Asia and other Latin American countries. Accordingly, these countries may be sensitive to fluctuations in demand, protectionist trade policies, exchange rates and changes in market conditions associated with those countries. Additionally, in Mexico, the long-term implications of the United States-Mexico-Canada Agreement, the 2020 successor to NAFTA, are yet to be determined. This uncertainty may have an adverse impact on Mexico's economic outlook and the value of Fund investments in Mexico.

The economic growth of most Latin American countries is highly dependent on commodity exports and the economies of certain Latin American countries, particularly Mexico and Venezuela, are highly dependent on oil exports. As a result, these economies are particularly susceptible to fluctuations in the price of oil and other commodities and currency fluctuations.

The prices of oil and other commodities experienced volatility driven, in part, by a continued slowdown of growth in China and the effects of the COVID-19 pandemic. If growth in China remains slow, or if global economic conditions worsen, prices for Latin American commodities may experience increased volatility and demand may continue to decrease. Although certain of these countries have recently shown signs of recovery, such recovery, if sustained, may be gradual. In addition, prolonged economic difficulties may have negative effects on the transition to a more stable democracy in some Latin American countries.

Trade Agreements. Certain Latin American countries have entered into regional trade agreements that are designed to, among other things, reduce trade barriers between countries, increase competition among companies, and reduce government subsidies in certain industries. No assurance can be given that these changes will be successful in the long term, or that these changes will result in the economic stability intended. There is a possibility that these trade arrangements will not be fully implemented, or will be partially or completely unwound. It is also possible that a significant participant could choose to abandon a trade agreement, which could diminish its credibility and influence. Any of these occurrences could have adverse effects on the markets of both participating and non-participating countries, including sharp appreciation or depreciation of participants' national currencies and a significant increase in exchange rate volatility, a resurgence in economic protectionism, an undermining of confidence in the Latin American markets, an undermining of Latin American economic stability, the collapse or slowdown of the drive towards Latin American economic unity, and/or reversion of the attempts to lower government debt and inflation rates that were introduced in anticipation of such trade agreements. Such developments could have an adverse impact on the Fund's investments in Latin America generally or in specific countries participating in such trade agreements.

Sovereign Debt. Latin American economies generally are heavily dependent upon foreign credit and loans, and may be 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. In addition to risk of default, debt repayment may be restructured or rescheduled, which may impair economic activity. Moreover, the debt may be susceptible to high interest rates and may reach levels that would adversely affect Latin American economies. In addition, certain Latin American economies have been influenced by changing supply and demand for a particular currency, monetary policies of governments (including exchange control programs, restrictions on local exchanges or markets and limitations on foreign investment in a country or on investment by residents of a country in other countries), and currency devaluations and revaluations. A relatively small number of Latin American companies represents a large portion of Latin America's total market and thus may be more sensitive to adverse political or economic circumstances and market movements. A number of Latin American countries are among the largest debtors of developing countries and have a history of reliance on foreign debt and default. The majority of the region's economies have become dependent upon foreign credit and loans from external sources to fund government economic plans. Historically, these plans have frequently resulted in little benefit accruing to the economy. Most countries have been forced to restructure their loans or risk default on their debt obligations. In addition, interest on the debt is subject to market conditions and may reach levels that would impair economic activity and create a difficult and costly environment for borrowers.

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Accordingly, these governments may be forced to reschedule or freeze their debt repayment, which could negatively affect local markets. While the region has recently had mixed levels of economic growth, recovery from past economic downturns in Latin America has historically been slow, and such growth, if sustained, may be gradual. The ongoing effects of the European debt crisis, the effects of the COVID-19 pandemic, and persistent low growth in the global economy may reduce demand for exports from Latin America and limit the availability of foreign credit for some countries in the region. As a result, the Fund's investments in Latin American securities could be harmed if economic recovery in the region is limited.

■ **Middle East Securities**. Many Middle Eastern countries are prone to political turbulence, and the political and legal systems in such countries may have an adverse impact on the Fund. Certain economies in the Middle East are highly reliant on income from the exports of primary commodities, such as oil, or trade with countries involved in the sale of oil, and their economies are therefore vulnerable to changes in the market for oil and foreign currency values. As global demand for oil fluctuates, many Middle Eastern economies may be significantly impacted. Additionally, the economies of many Middle Eastern countries are largely dependent on, and linked together by, certain commodities (such as gold, silver, copper, diamonds, and oil). As a result, Middle Eastern economies are vulnerable to changes in commodity prices, and fluctuations in demand for these commodities could significantly impact economies in these regions. A downturn in one country's economy could have a disproportionally large effect on others in the region. <br> Many Middle Eastern governments have exercised and continue to exercise substantial influence over many aspects of the private sector. In certain cases, a Middle Eastern country's government may own or control many companies, including some of the largest companies in the country. Accordingly, governmental actions in the future could have a significant effect on economic conditions in Middle Eastern countries, and a country's government may act in a detrimental or hostile manner toward private enterprise or foreign investment. This could affect private sector companies and the Fund, as well as the value of securities in the Fund's portfolio. <br> Certain Middle Eastern markets are in the earliest stages of development and may be considered "frontier markets." Financial markets in the Middle East generally are less liquid and more volatile than other markets, including markets in developed and other emerging economies. As a result, there may be a high concentration of market capitalization and trading volume in a small number of issuers representing a limited number of industries, as well as a high concentration of investors and financial intermediaries. Brokers in Middle Eastern countries typically are fewer in number and less well-capitalized than brokers in the United States. Since the Fund may need to effect securities transactions through these brokers, the Fund is subject to the risk that these brokers will not be able to fulfill their obligations to the Fund (i.e., counterparty risk). This risk is magnified to the extent that the Fund effects securities transactions through a single broker or a small number of brokers. In addition, securities may have limited marketability and be subject to erratic price movements. <br> The legal systems in certain Middle Eastern countries also may have an adverse impact on the Fund. For example, the potential liability of a shareholder in a U.S. corporation with respect to acts of the corporation generally is limited to the amount of the shareholder's investment. However, the concept of limited liability is less clear in certain Middle Eastern countries. The Fund therefore may be liable in certain Middle Eastern countries for the acts of a corporation in which it invests for an amount greater than its actual investment in that corporation. Similarly, the rights of investors in Middle Eastern issuers may be more limited than those of shareholders of a U.S. corporation. It may be difficult or impossible to obtain or enforce a legal judgment in a Middle Eastern country. Some Middle Eastern countries prohibit or impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign entities such as the Fund. For example, certain countries may require governmental approval prior to investment by foreign persons or limit the amount of investment by foreign persons in a particular issuer. Certain Middle Eastern countries may also limit the investment by foreign persons to a specific class of securities of an issuer that may have less advantageous terms (including price) than securities of the issuer available for purchase by nationals of the relevant Middle Eastern country. <br> The manner in which foreign investors may invest in issuers in certain Middle Eastern countries, as well as limitations on those investments, may have an adverse impact on the operations of the Fund. For example, in certain of these countries, the Fund may be required to invest initially through a local broker or other entity and then have the shares that were purchased re-registered in the name of the Fund. Re-registration in some instances may not be possible on a timely basis. This may result in a delay during which the Fund may be denied certain of its rights as an investor, including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where the Fund places a purchase order but is subsequently informed, at the time of re-registration, that the permissible allocation of the investment to foreign investors has been filled and, consequently, the Fund may not be able to invest in the relevant company. <br> Substantial limitations may exist in certain Middle Eastern countries with respect to the Fund's ability to repatriate investment income or capital gains. The Fund could be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the application to the Fund of any restrictions on investment. Certain Middle Eastern countries may be heavily dependent upon international trade and, consequently, have been and may continue to be negatively affected by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. These countries also have been and may continue to be adversely impacted by economic conditions in the countries with which they trade. In addition, certain issuers located in Middle Eastern countries in which the Fund invests may operate in, or have dealings with, countries subject to sanctions and/or embargoes imposed by the U.S. government and the United Nations, and/or countries identified by the U.S. government as state sponsors of terrorism. As a result, an issuer may sustain damage to its reputation if it is identified as an issuer which operates in, or has dealings with, such countries. The Fund, as an investor in such issuers, will be indirectly subject to those risks. <br> Certain Middle Eastern countries have strained relations with other Middle Eastern countries due to territorial and sovereignty disputes, historical animosities, international alliances, religious tensions or defense concerns, which may periodically become violent and may adversely affect the economies of these countries. Certain Middle Eastern countries experience significant unemployment as well as widespread underemployment. Many Middle Eastern countries periodically have experienced political, economic and social unrest as protestors have called for widespread reform. Some of these protests have resulted in a governmental regime change, internal conflict or civil war. In some instances where pro-democracy movements successfully toppled regimes, the stability of successor regimes has at times proven weak, as evidenced, for example, in Egypt. In other instances, these changes have devolved into armed conflict involving local factions, regional allies or international forces, and even protracted civil wars. If further regime change were to occur, internal conflicts were to intensify, or a civil war were to continue in any of these countries, such instability could adversely affect the economies of these Middle Eastern countries in which the Fund invests and could decrease the value of the Fund's investments.

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Middle Eastern economies may be subject to acts of terrorism, political strife, religious, ethnic or socioeconomic unrest, conflict and violence and sudden outbreaks of hostilities with neighboring countries. There has been an increase in recruitment efforts and an aggressive push for territorial control by terrorist groups in the region, which has led to an outbreak of warfare and hostilities. Such hostilities may continue into the future or may escalate at any time due to ethnic, racial, political, religious or ideological tensions between groups in the region or foreign intervention or lack of intervention, among other factors. These developments could adversely affect the Fund.

■ **Pacific Basin Securities**.   Many Asian countries may be subject to a greater degree of social, political and economic instability than is the case in the U.S. and Western European countries. Such instability may result from, among other things, (i) authoritarian governments or military involvement in political and economic decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the Asia-Pacific geographic region has historically been prone to natural disasters. The occurrence of a natural disaster in the region, including the subsequent recovery, could negatively impact the economy of any country in the region. The existence of overburdened infrastructure and obsolete financial systems also presents risks in certain Asian countries, as do environmental problems. <br> The economies of most of the Asian countries are heavily dependent on international trade and are accordingly affected by protective trade barriers and the economic conditions of their trading partners, principally, the U.S., Japan, China and the EU. The enactment by the U.S. or other principal trading partners of protectionist trade legislation, reduction of foreign investment in the local economies and general declines in the international securities markets could have a significant adverse effect upon the securities markets of the Asian countries. The economies of certain Asian countries may depend to a significant degree upon only a few industries and/or exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be affected by a variety of factors. In addition, certain developing Asian countries, such as the Philippines and India, are especially large debtors to commercial banks and foreign governments. Many of the Pacific Basin economies may be intertwined, so an economic downturn in one country may result in, or be accompanied by, an economic downturn in other countries in the region. Furthermore, many of the Pacific Basin economies are characterized by high inflation, underdeveloped financial services sectors, heavy reliance on international trade, frequent currency fluctuations, devaluations, or restrictions, political and social instability, and less efficient markets. <br> The securities markets in Asia are substantially smaller, less liquid and more volatile than the major securities markets in the U.S., and some of the stock exchanges in the region are in the early stages of their development, as compared to the stock exchanges in the U.S. Equity securities of many companies in the region may be less liquid and more volatile than equity securities of U.S. companies of comparable size. Additionally, many companies traded on stock exchanges in the region are smaller and less seasoned than companies whose securities are traded on stock exchanges in the U.S. A high proportion of the shares of many issuers may be held by a limited number of persons and financial institutions, which may limit the number of shares available for investment by the Fund. In some countries, there is no established secondary market for securities. Therefore, liquidity of securities may be generally low and transaction costs generally high. Similarly, volume and liquidity in the bond markets in Asia are less than in the U.S. and, at times, price volatility can be greater than in the U.S. A limited number of issuers in Asian securities markets may represent a disproportionately large percentage of market capitalization and trading value. The limited liquidity of securities markets in Asia may also affect the Fund's ability to acquire or dispose of securities at the price and time it wishes to do so. In addition, the Asian securities markets are susceptible to being influenced by large investors trading significant blocks of securities.

The legal systems in certain developing market Pacific Basin countries also may have an adverse impact on the Fund. For example, while the potential liability of a shareholder in a U.S. corporation with respect to acts of the corporation is generally limited to the amount of the shareholder's investment, the notion of limited liability is less clear in certain Pacific Basin countries. Similarly, the rights of investors in Pacific Basin companies may be more limited than those of shareholders of U.S. corporations. It may be difficult or impossible to obtain and/or enforce a judgment in a Pacific Basin country.

Many stock markets are undergoing a period of growth and change which may result in trading volatility and difficulties in the settlement and recording of transactions, and in interpreting and applying the relevant law and regulations. With respect to investments in the currencies of Asian countries, changes in the value of those currencies against the U.S. dollar will result in corresponding changes in the U.S. dollar value of the Fund's assets denominated in those currencies. Certain developing economies in the Asia-Pacific region have experienced currency fluctuations, devaluations, and restrictions; unstable employment rates; rapid fluctuation in, among other things, inflation and reliance on exports; and less efficient markets. Currency fluctuations or devaluations in any one country can have a significant effect on the entire Asia Pacific region. Holding securities in currencies that are devalued (or in companies whose revenues are substantially in currencies that are devalued) will likely decrease the value of the Fund's investments. Some developing Asian countries prohibit or impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign entities such as the Fund. For example, certain countries may require governmental approval prior to investments by foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment by foreign persons to only a specific class of securities of a company which may have less advantageous terms (including price and shareholder rights) than securities of the company available for purchase by nationals of the relevant country. There can be no assurance that the Fund will be able to obtain required governmental approvals in a timely manner. In addition, changes to restrictions on foreign ownership of securities subsequent to the Fund's purchase of such securities may have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in issuers or industries deemed important to national interests.

■ **United Kingdom Securities Risk.** Exposure to issuers located in, or with economic ties to, the United Kingdom, could expose the Fund to risks associated with investments in the United Kingdom to a greater extent than more geographically diverse funds, including regulatory, political, currency, security, and economic risks specific to the United Kingdom. The United Kingdom has one of the largest economies in Europe, and the United States and other European countries are substantial trading partners of the United Kingdom. As a result, the United Kingdom economy may be impacted by changes to the economic condition of the United States and other European countries. <br> Increasing commodity prices and rising inflation levels caused or exacerbated by the war between Russia and Ukraine recently prompted the United Kingdom government to implement significant policy changes. It is difficult to predict what effects such policies (or the suggestion of such policies) may have and the duration of those effects, which may last for extended periods. These effects may negatively impact broad segments of business and the population and have a significant and rapid negative impact on the performance of the Fund's investments. In September 2022, the

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unexpected announcement by the United Kingdom government to propose spending pledges and tax cuts as part of the mini-budget, caused government bond prices to fall sharply, sparking a liquidity and valuation crisis among certain pension funds, and a fear that interest rates might rise at a faster rate than had been anticipated. The Bank of England subsequently launched an emergency intervention to stabilize the United Kingdom's economy. The uncertainty also resulted in the British pound sterling falling to a historic low against the dollar, though there was some recovery shortly thereafter. The United Kingdom's government subsequently reversed proposing some of the spending pledges and tax cuts; however, there continues to be considerable uncertainty surrounding these plans, which may continue to have a destabilizing effect on the United Kingdom economy.<br>Additionally, the transitional period following the United Kingdom's departure from the European Union (commonly referred to as "Brexit") ended on December 31, 2020 and European Union law ceased to have effect in the United Kingdom except to the extent retained by the United Kingdom by unilateral act. The United Kingdom and the European Union then reached a trade agreement that was ratified by all applicable United Kingdom and European Union governmental bodies. The economic effects of Brexit, including certain negative impacts on the ability of the United Kingdom to trade seamlessly with the European Union, are becoming clearer but some political, regulatory and commercial uncertainty in relation to the longer term impacts nevertheless remains to be resolved. Accordingly, there remains a risk that the aftermath of Brexit, including its ongoing effect on the United Kingdom's relationships with other countries, including the United States and the European Union, may negatively impact the value of investments held by the Fund. Although a sub-advisor may hedge Fund currency exposures back to the U.S. dollar, a depreciation of the British pound sterling and/or the Euro in relation to the U.S. dollar could adversely affect Fund investments denominated in British pound sterling or Euros that are not fully hedged regardless of the performance of the underlying issuer.

**Growth Companies** — Growth companies are those that are expected to have the potential for above-average or rapid growth. Growth companies are expected to increase their earnings at a certain rate. When these expectations are not met or earnings decrease, the prices of these securities may decline, sometimes sharply, even if earnings showed an absolute increase. The Fund's investments in growth companies may be more sensitive to company earnings and more volatile than the market in general primarily because their stock prices are based heavily on future expectations. If an assessment of the prospects for a company's growth is incorrect, then the price of the company's stock may fall or not approach the value placed on it. Growth company securities may lack the dividend yield that can cushion prices in market downturns. Growth companies may have limited operating histories and greater business risks, and their potential for profitability may be dependent on regulatory approval of their products or regulatory developments affecting certain sectors, which could have an adverse impact upon growth companies' future growth and profitability. Different investment styles tend to shift in and out of favor, depending on market conditions and investor sentiment. The Fund's growth style could cause it to underperform funds that use a value or non-growth approach to investing or have a broader investment style.

**Illiquid and Restricted Securities** — Generally, an illiquid asset is an asset that the Fund reasonably expects 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. Such securities include those 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 pursuant to Rule 144A under the Securities Act ("Section 4(a)(2) securities"). Such securities are restricted as to disposition under the federal securities laws, and generally are sold to institutional investors, such as the Fund, that agree they are purchasing the securities for investment and not with an intention to distribute to the public. 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. 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. 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. Rule 144A under the Securities Act 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 held by the Fund qualify under Rule 144A and an institutional market develops for those securities, the Fund likely will be able to dispose of the securities without registering them under the Securities Act. To the extent that institutional buyers are uninterested in purchasing restricted securities, the Fund's investment in such securities could have the effect of reducing the Fund's liquidity. A determination could be made that certain securities qualified for trading under Rule 144A are liquid. In addition to Rule 144A, Regulation S under the Securities Act permits the sale abroad of securities that are not registered for sale in the United States and includes a provision for U.S. investors, such as the Fund, to purchase such unregistered securities if certain conditions are met.

Limitations on resale may have an adverse effect on the marketability of portfolio securities, and the 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, the Fund may get only limited information about an issuer of such a security, so it may be less able to predict a loss. The 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.

**Indebtedness, Loan Participations and Assignments** — Floating rate securities, including loans, provide for automatic adjustment of the interest rate at fixed intervals (e.g., daily, weekly, monthly, or semi-annually) or automatic adjustment of the interest rate whenever a specified interest rate or index changes. The interest rate on floating rate securities ordinarily is determined by reference to LIBOR, a particular bank's prime rate, the 90-day U.S. Treasury Bill rate, the rate of return on commercial paper or bank CDs, an index of short-term tax-exempt rates or some other objective measure.

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Loan interests are a form of direct debt instrument in which the Fund may invest by taking an assignment of all or a portion of an interest in a loan previously held by another institution or by acquiring a participation in an interest in a loan that continues to be held by another institution. The Fund may invest in secured and unsecured loans. Loans are subject to the same risks as other direct debt instruments discussed above and carry additional risks described in this section. The Fund's ability to receive payments in connection with loans depends on the financial condition of the borrower. The Manager or the sub-advisor will not rely solely on another lending institution's credit analysis of the borrower, but will perform its own investment analysis of the borrower. The Manager's or the sub-advisor's analysis may include consideration of the borrower's financial strength, managerial experience, debt coverage, additional borrowing requirements or debt maturity schedules, changing financial conditions, and responsiveness to changes in business conditions and interest rates. Indebtedness of borrowers whose creditworthiness is poor involves substantially greater risks and may be highly speculative. Borrowers that are in bankruptcy or restructuring may never pay off their indebtedness, or may pay only a small fraction of the amount owed. In connection with the restructuring of a loan or other direct debt instrument outside of bankruptcy court in a negotiated work-out or in the context of bankruptcy proceedings, equity securities or junior debt securities may be received in exchange for all or a portion of an interest in the security. Loans are typically administered by a bank, insurance company, finance company or other financial institution (the "agent") for a lending syndicate of financial institutions. In a typical loan, the agent administers the terms of the loan agreement and is responsible for the collection of principal and interest and fee payments from the borrower and the apportionment of these payments to all lenders that are parties to the loan agreement. In addition, an institution (which may be the agent) may hold collateral on behalf of the lenders. Typically, under loan agreements, the agent is given broad authority in monitoring the borrower's performance and is obligated to use the same care it would use in the management of its own property. In asserting rights against a borrower, the Fund normally will be dependent on the willingness of the lead bank to assert these rights, or upon a vote of all the lenders to authorize the action. If an agent becomes insolvent, or has a receiver, conservator, or similar official appointed for it by the appropriate regulatory authority, or becomes a debtor in a bankruptcy proceeding, the agent's appointment may be terminated and a successor agent would be appointed. If an appropriate regulator or court determines that assets held by the agent for the benefit of purchasers of loans are subject to the claims of the agent's general or secured creditors, the Fund might incur certain costs and delays in realizing payment on a loan or suffer a loss of principal and/or interest. The Fund may be subject to similar risks when it buys a participation interest or an assignment from an intermediary, as discussed below. A number of judicial decisions in the United States have upheld the right of borrowers to sue lenders or bondholders on the basis of various evolving legal theories (commonly referred to as "lender liability"). Generally, lender liability is founded upon the premise that an institutional lender or bondholder has violated a duty (whether implied or contractual) of good faith, commercial reasonableness and fair dealing owed to the borrower or issuer or has assumed a degree of control over the borrower or issuer resulting in the creation of a fiduciary duty owed to the borrower or issuer or its other creditors or stockholders. Because of the nature of its investments, the Fund may be subject to allegations of lender liability. In addition, under common law principles that in some cases form the basis for lender liability claims, if a lender or bondholder: (i) intentionally takes an action that results in the undercapitalization of a borrower to the detriment of other creditors of such borrower, (ii) engages in other inequitable conduct to the detriment of such other creditors, (iii) engages in fraud with respect to, or makes misrepresentations to, such other creditors or (iv) uses its influence as a stockholder to dominate or control a borrower to the detriment of other creditors of such borrower, a court may elect to subordinate the claim of the offending lender or bondholder to the claims of the disadvantaged creditor or creditors, a remedy called "equitable subordination." The Fund does not intend to engage in conduct that would form the basis for a successful cause of action based upon the equitable subordination doctrine; however, because of the nature of the debt obligations, the Fund may be subject to claims from creditors of an obligor that debt obligations of such obligor which are held by the Fund should be equitably subordinated. Because affiliates of, or persons related to, the Manager and/or the sub-advisor may hold equity or other interests in obligors of the Fund, the Fund could be exposed to claims for equitable subordination or lender liability or both based on such equity or other holdings. Loans that are fully secured offer the Fund more protection than an unsecured loan in the event of non-payment of scheduled interest or principal. However, there is no assurance that the collateral from a secured loan in which the Fund invests can be promptly liquidated, or that its liquidation value will be equal to the value of the debt. In most loan agreements, there is no formal requirement to pledge additional collateral if the value of the initial collateral declines. As a result, a loan may not always be fully collateralized and can decline significantly in value. If a borrower becomes insolvent, access to collateral may be limited by bankruptcy and other laws. Borrowers that are in bankruptcy may pay only a small portion of the amount owed, if they are able to pay at all. If a secured loan is foreclosed, the Fund will likely be required to bear the costs and liabilities associated with owning and disposing of the collateral. There is also a possibility that the Fund will become the owner of its pro rata share of the collateral, which may carry additional risks and liabilities. In addition, under legal theories of lender liability, the Fund potentially might be held liable as a co-lender. In the event of a borrower's bankruptcy or insolvency, the borrower's obligation to repay the loan may be subject to certain defenses that the borrower can assert as a result of improper conduct by the agent. Some loans are unsecured. If the borrower defaults on an unsecured loan, the Fund will be a general creditor and will not have rights to any specific assets of the borrower. Loans may be subject to legal or contractual restrictions on resale. Loans are not currently listed on any securities exchange or automatic quotation system, and there may not be an active trading market for some loans. As a result, the Fund may be unable to sell such investments at an opportune time or may have to resell them at less than fair market value. The lack of a liquid secondary market may have an adverse impact on the Fund's ability to dispose of particular assignments or participations when necessary to meet redemptions of the Fund's shares, to meet the Fund's liquidity needs or when necessary in response to a specific economic event, such as deterioration in the creditworthiness of the borrower. In addition, transactions in loan investments may take a significant amount of time to settle (i.e., more than seven days and up to several weeks or longer). Accordingly, the proceeds from the sale of a loan investment may not be available to make additional investments or to meet redemption obligations until potentially a substantial period after the sale of the loan. The extended trade settlement periods could force the Fund to liquidate other securities to meet redemptions and may present a risk that the Fund may incur losses in order to timely honor redemptions. To the extent that the Manager or the sub-advisor determines that any such investments are illiquid, they will be subject to the Fund's restrictions on investments in illiquid securities. The borrower in a loan arrangement may, either at its own election or pursuant to the terms of the loan documentation, prepay amounts of the loan from time to time. Due to prepayment, the actual maturity of loans is typically shorter than their stated final maturity calculated solely on the basis of the stated life and payment schedule. The degree to which borrowers prepay loans, whether as a contractual requirement or at their election, may be affected by general business conditions, market interest rates, the borrower's financial condition and competitive conditions among lenders. Such prepayments may require the Fund to replace an investment with a lower yielding security which may have an adverse effect on the Fund's share price. Prepayments cannot be predicted with accuracy. Floating rate loans can be less sensitive to prepayment risk, but the Fund's NAV may still fluctuate in

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response to interest rate changes because variable interest rates may reset only periodically and may not rise or decline as much as interest rates in general. A borrower must comply with various restrictive covenants in a loan agreement such as restrictions on dividend payments and limits on total debt. The loan agreement may also contain a covenant requiring the borrower to prepay the loan with any free cash flow. A breach of a covenant is normally an event of default, which provides the agent or the lenders the right to call the outstanding loan. Loans normally are not registered with the SEC or any state securities commission or listed on any securities exchange. As a result, the amount of public information available about a specific loan historically has been less extensive than if the loan were registered or exchange-traded. They may also not be considered "securities," and purchasers, such as the Fund, therefore may not be entitled to rely on the strong anti-fraud protections of the federal securities laws. In the absence of definitive regulatory guidance, the Fund relies on the sub-advisor's research in an attempt to avoid situations where fraud and misrepresentation could adversely affect the Fund. In addition, loan interests may not be rated by independent rating agencies and therefore, investments in a particular loan participation may depend almost exclusively on the credit analysis of the borrower performed by the Manager or the sub-advisor.

■ **Assignments.** When the Fund purchases a loan by assignment, the Fund typically succeeds to the rights of the assigning lender under the loan agreement and becomes a lender under the loan agreement. Subject to the terms of the loan agreement, the Fund typically succeeds to all the rights and obligations under the loan agreement of the assigning lender. However, assignments may be arranged through private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender.

■ **Participation Interests.** In purchasing a loan participation, the Fund acquires some or all of the interest of a bank or other lending institution in a loan to a borrower. The contractual arrangement with the bank transfers the cash stream of the underlying bank loan to the participating investor. The Fund's rights under a participation interest with respect to a particular loan may be more limited than the rights of original lenders or of investors who acquire an assignment of that loan. In purchasing participation interests, the Fund will have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the participation interest (the "participating lender") and only when the participating lender receives the payments from the borrower. <br> In a participation interest, the Fund will usually have a contractual relationship only with the selling institution and not the underlying borrower. The Fund normally will have to rely on the participating lender to demand and receive payments in respect of the loans, and to pay those amounts on to the Fund; thus, the Fund will be subject to the risk that the lender may be unwilling or unable to do so. In such a case, the Fund would not likely have any rights against the borrower directly. In addition, the issuing bank does not guarantee the participations. As a result, the Fund will assume the credit risk of both the borrower and the lender that is selling the participation. In addition, the Fund generally will have no right to object to certain changes to the loan agreement agreed to by the participating lender. <br> In buying a participation interest, the Fund might not directly benefit from the collateral supporting the related loan and may be subject to any rights of set off the borrower has against the selling institution. In the event of bankruptcy or insolvency of the borrower, the obligation of the borrower to repay the loan may be subject to certain defenses that can be asserted by the borrower as a result of any improper conduct of the participating lender. As a result, the Fund may be subject to delays, expenses and risks that are greater than those that exist when the Fund is an original lender or assignee. <br> If the participating lender fails to perform its obligations under the participation agreement, the Fund might incur costs delays and risks in realizing payment that are greater than those that would have been involved if purchasing a direct obligation of such borrower. The Fund may suffer a loss of principal and/or interest. If a participating lender becomes insolvent, the Fund may be treated as a general creditor of that lender. As a general creditor, the Fund may not benefit from a right of set off that the lender has against the borrower. Further, in the event of the bankruptcy or insolvency of the corporate borrower, the loan participation may be subject to certain defenses that can be asserted by such borrower as a result of improper conduct by the issuing bank. The secondary market, if any, for these loan participations is extremely limited and any such participations purchased by the Fund may be regarded as illiquid. The Fund will acquire a participation interest only if the Manager or the sub-advisor determines that the participating lender or other intermediary participant selling the participation interest is creditworthy.

■ **Fees.** The Fund may be required to pay and may receive various commissions and fees in the process of purchasing, holding and selling loans. The fee component may include any, or a combination of, the following elements: assignment fees, arrangement fees, non-use fees, facility fees, letter of credit fees, and ticking fees. Arrangement fees are paid at the commencement of a loan as compensation for the initiation of the transaction. A non-use fee is paid based upon the amount committed but not used under the loan. Facility fees are on-going annual fees paid in connection with a loan. Letter of credit fees are paid if a loan involves a letter of credit. Ticking fees are paid from the initial commitment indication until loan closing if for an extended period. The amount of fees is negotiated at the time of closing. In addition, the Fund may incur expenses associated with researching and analyzing potential loan investments, including legal fees.

**Inflation Risk** — Stocks, bonds and other securities may fall in value due to higher actual or anticipated inflation. Further, a rapid increase in prices for goods and services may have an adverse effect on corporate profits and consumer spending, which also may result in lower values for stocks, bonds and other securities. Inflation risk also may result from the variation in the value of cash flows from a security due to inflation, as measured in terms of purchasing power. For example, if the Fund purchases a 5-year bond in which it can realize a coupon rate of five percent (5%), but the rate of inflation is six percent (6%), then the purchasing power of the cash flow has declined. Fixed income securities, other than inflation-linked bonds, adjustable bonds and floating rate bonds, generally expose the Fund to inflation risk because the interest rate that the issuer promises to pay is fixed for the life of the security. To the extent that interest rates reflect the expected inflation rate, floating rate bonds have a lower level of inflation risk.

**Inflation-Indexed Securities** — Inflation-indexed securities, also known as "inflation-protected securities," are fixed-income instruments structured such that their interest payments and principal amounts are adjusted to keep up with inflation. Two structures are common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of the bond. Other issuers pay out the index-based accruals as part of its coupon. The U.S. Treasury is obligated to repay at least the greater of the original principal value or accrued principal value at maturity for inflation-indexed securities issued directly by the U.S. Government, which are referred to as "U.S. Treasury Inflation Protected Securities," or "TIPS," and are backed by the full faith and credit of the U.S. Government. However, inflation-indexed securities of other issuers may or may not have the same principal guarantee and may repay an amount less than the original principal value at maturity. If inflation is lower than expected during the period the Fund holds the security, the Fund may earn less on it than on a conventional bond. Inflation-indexed securities are expected to react

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primarily to changes in the "real" interest rate (i.e., the nominal, or stated, rate less the rate of inflation), while a typical bond reacts to changes in the nominal interest rate. Accordingly, inflation-indexed securities have characteristics of fixed-rate U.S. Treasury securities having a shorter duration. Changes in market interest rates from causes other than inflation will likely affect the market prices of inflation-indexed securities in the same manner as conventional bonds. Any increase in the principal amount of an inflation-indexed debt security will be considered ordinary income, even though the Fund will not receive the principal until maturity. Thus, the Fund could be required, at times, to liquidate other investments in order to satisfy its distribution requirements.

There can be no assurance that the inflation index used will accurately measure the real rate of inflation in the prices of goods and services. The Fund's investments in inflation-indexed securities may lose value in the event that the actual rate of inflation is different than the rate of the inflation index. In addition, inflation-indexed securities are subject to risks related to the discontinuation, substitution or fundamental alteration of the Consumer Price Index for All Urban Consumers (the index used for U.S. TIPS) or other relevant pricing indices. Such alteration, which could be effected by legislation or Executive Order, could be materially adverse to the interests of an investor in the securities or substituted with an alternative index. In periods of deflation when the inflation rate is declining, the principal value of an inflation-indexed security will be adjusted downward. This will result in a decrease in the interest payments thereon, but holders at maturity receive no less than par value. However, if the Fund purchases inflation-indexed securities in the secondary market whose principal values have been adjusted upward due to inflation since issuance, the Fund may experience a loss if there is a subsequent period of deflation.

**Interfund Lending** — Pursuant to an order issued by the SEC, the Fund may participate in a credit facility whereby the Fund, under certain conditions, is permitted to lend money directly to and borrow directly from other funds under the Manager's management for temporary purposes. The credit facility is administered by a credit facility team consisting of professionals from the Manager's asset management, compliance, and accounting departments, who report on credit facility activities to the Board. The credit facility can provide a borrowing fund with savings at times when the cash position of the Fund is insufficient to meet temporary cash requirements. This situation could arise when shareholder redemptions exceed anticipated volumes and the Fund has insufficient cash on hand to satisfy such redemptions, or when sales of securities do not settle as expected, resulting in a cash shortfall for the Fund. When the Fund liquidates portfolio securities to meet redemption requests, it often does not receive payment in settlement for up to two days (or longer for certain foreign transactions). However, redemption requests normally are satisfied the next business day. The credit facility provides a source of immediate, short-term liquidity pending settlement of the sale of portfolio securities. Although the credit facility may reduce the Fund's need to borrow from banks, the Fund remains free to establish and utilize lines of credit or other borrowing arrangements with banks.

**Investment Grade Securities** — Investment grade securities that the Fund may purchase, either as part of its principal investment strategy or to implement its temporary defensive policy, include securities issued or guaranteed by the U.S. Government, its agencies and instrumentalities, as well as securities rated in one of the four highest rating categories by at least two rating organizations rating that security (such as S&P Global, Fitch, or Moody's) or rated in one of the four highest rating categories by one rating organization if it is the only organization rating that security. The Fund, at the discretion of the Manager or a sub-advisor, may retain a security that has been downgraded below the initial investment criteria. Please see "Appendix C: Ratings Definitions" for an explanation of rating categories.

**Issuer Risk** — The value of an investment may decline for a number of reasons which directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets.

**Large-Capitalization Companies Risk** — The securities of large market capitalization companies may underperform other segments of the market, in some cases for extended periods of time. Such companies may be less responsive to competitive challenges and opportunities, such as changes in technology and consumer tastes, and, at times, such companies may be out of favor with investors. Large market capitalization companies generally are expected to be less volatile than companies with smaller market capitalizations. However, large market capitalization companies may be unable to attain the high growth rates of successful smaller companies, especially during periods of economic expansion, and may instead focus their competitive efforts on maintaining or expanding their market share.

**LIBOR Risk** — Certain of the instruments in which the Fund may invest have variable or floating coupon rates, or may provide exposure to underlying investments with coupon rates, that are based on LIBOR, the Secured Overnight Financing Rate ("SOFR"), 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 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 the Fund's payment obligation under a derivative instrument, the cost of financing to the Fund, or an investment's value or return to the Fund, and may be used in other ways that affect the Fund's performance. Most maturities and currencies of LIBOR were phased out at the end of 2021, with the remaining ones to be phased out on June 30, 2023. These events and any additional regulatory or market changes may have an adverse impact on the 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 develop successor Reference Rates. SOFR has been selected by a committee established by the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York to replace LIBOR as a Reference Rate in the United States and U.S. law requires that contracts without a practicable LIBOR alternative default to SOFR plus a set spread beginning in mid-2023. SOFR is a secured, nearly risk-free rate, while LIBOR is an unsecured rate that includes an element of bank credit risk. In addition, SOFR is strictly an overnight rate, while LIBOR historically has been published for various maturities, ranging from overnight to one year. Thus, LIBOR may be expected to be higher than SOFR, and the spread between the two is likely to widen in times of market stress. Certain existing contracts provide for a spread adjustment when transitioning to SOFR from LIBOR, but there is no assurance that it will provide adequate compensation. Other countries have undertaken similar initiatives to identify replacement Reference Rates for LIBOR in their respective markets. However, there are obstacles to converting certain existing investments and transactions to a new Reference Rate, as well as risks associated with using a new Reference Rate with respect to new investments and transactions. It is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or

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instruments may be amended, whether through legislation, marketwide protocols, fallback contractual provisions, bespoke negotiations or amendments or otherwise. This process could require extensive negotiations of and/or amendments to agreements and other documentation governing Reference Rate-linked investments and lead to disputes, litigation, or other actions with counterparties or portfolio companies regarding the interpretation and enforceability of "fallback" provisions that provide for an alternative Reference Rate in the event of Reference Rate unavailability. Nonetheless, there remains uncertainty regarding 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 the Fund. Financial industry groups have begun transitioning 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. Various complexities brought about by significant changes to operational processes and IT systems could take a long time to complete, and coordination with other market participants may become severely impacted, which may negatively impact the Fund. Since the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to June 30, 2023. 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. Further, U.S. issuers are currently not obligated to include any particular fallback language in transaction documents for new issuances of LIBOR-linked securities. In addition, the alternative reference or benchmark rate may be an ineffective substitute, potentially resulting in prolonged adverse market conditions for the 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 the 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 the 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.

**Micro-Capitalization Companies Risk** — Micro-capitalization companies are subject to substantially greater risks of loss and price fluctuations, sometimes rapidly and unpredictably, because their earnings and revenues tend to be less predictable. In addition, some companies may experience significant losses. Since micro-capitalization companies may not have an operating history, product lines, or financial resources, their share prices also tend to be more volatile and their markets less liquid than companies with larger market capitalizations, and they can be sensitive to changes in overall economic conditions, interest rates, borrowing costs and earnings. The shares of micro-capitalization companies tend to trade less frequently than those of larger, more established companies, which can adversely affect the pricing of these securities and the future ability to sell these securities. Micro-capitalization companies face greater risk of business failure, which could increase the volatility of the Fund's portfolio.

**Mid-Capitalization Companies Risk** — Investing in the securities of mid-capitalization companies involves greater risk and the possibility of greater price volatility than investing in more established companies with larger capitalization. Since mid-capitalization companies may have limited operating history, product lines and financial resources, the securities of these companies may lack sufficient market liquidity and can be sensitive to expected changes in interest rates, borrowing costs and earnings.

**Mortgage-Backed Securities** — Mortgage-backed securities may be more volatile or less liquid than more traditional debt securities. Mortgage-backed securities include both collateralized mortgage obligations and mortgage pass-through certificates.

■ **Collateralized Mortgage Obligations** **("CMOs").** A CMO is a debt obligation of a legal entity that is collateralized by mortgages or mortgage-related assets. CMOs divide the cash flow generated from the underlying mortgages or mortgage pass-through securities into different groups referred to as "tranches," which are then retired sequentially over time in order of priority. Similar to a bond, interest and prepaid principal is paid, in most cases, on a monthly basis. CMOs may be collateralized by whole mortgage loans or private mortgage bonds, but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed by GNMA; FHLMC and FNMA (each a government-sponsored enterprise owned entirely by private shareholders); and their income streams.

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. Although payment of the principal of, and interest on, the underlying collateral securing privately issued CMOs may be guaranteed by the U.S. Government or government-sponsored enterprises, these CMOs represent obligations solely of the private issuer and are not insured or guaranteed by the U.S. Government, any government-sponsored enterprise, or any other person or entity. Prepayments could cause early retirement of CMOs. Payment of interest or principal on some classes or series of CMOs may be subject to contingencies or some classes or series may bear some or all of the risk of default on the underlying mortgages. CMOs of different classes or series are generally retired in sequence as the underlying mortgage loans in the mortgage pool are repaid. If enough mortgages are repaid ahead of schedule, the classes or series of a CMO with the earliest maturities generally will be retired prior to their maturities. Thus, the early retirement of particular classes or series of a CMO held by the Fund would have the same effect as the prepayment of mortgages underlying other MBS. Conversely, slower than anticipated prepayments can extend the effective maturities of CMOs, subjecting them to a greater risk of decline in market value in response to rising interest rates than traditional debt securities, and therefore, potentially increasing the volatility of the Fund investing in CMOs.

As CMOs have evolved, some classes of CMO bonds have become more common. For example, the Fund may invest in parallel-pay and planned amortization class ("PAC") CMOs and multi-class pass through certificates. Parallel-pay CMOs and multi-class pass-through certificates are structured to provide payments of principal on each payment date to more than one class. These simultaneous payments are taken into account in calculating the stated maturity date or final distribution date of each class, which, as with other CMO and multi-class pass-through structures, must be retired by its stated maturity date or final distribution date but may be retired earlier. PACs generally require payments of a specified amount of principal on each payment date. PACs are parallel-pay CMOs with the required principal amount on such securities having the highest priority after interest has been paid to all classes. Any CMO or multi-class pass through structure that includes PAC securities must also have support tranches—known as support bonds, companion bonds or non-PAC bonds—which lend or absorb principal cash flows to allow the PAC securities to maintain their stated maturities and final distribution dates within a range of actual prepayment experience. These support tranches are subject to a higher level of

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maturity risk compared to other mortgage-related securities, and usually provide a higher yield to compensate investors. If principal cash flows are received in amounts outside a pre-determined range such that the support bonds cannot lend or absorb sufficient cash flows to the PAC securities as intended, the PAC securities are subject to heightened maturity risk. Consistent with the Fund's investment objectives and policies, it may invest in various tranches of CMO bonds, including support bonds.

A 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. See "Tax Information - Taxation of Certain Investments and Strategies."

■ **Commercial Mortgage-Backed Securities** **("CMBSs").** 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 pass-through 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. The commercial mortgage loans that underlie CMBS are generally not amortizing or not fully amortizing. That is, at their maturity date, repayment of the remaining principal balance or "balloon" is due and is repaid through the attainment of an additional loan or sale of the property. Many of the risks of investing in CMBS reflect the risk 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. CMBS may be less liquid and exhibit greater price volatility than other types of mortgage- or asset-backed securities.

■ **Mortgage Dollar Rolls.** The Fund may enter into mortgage dollar rolls in which the Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts with the same counterparty to repurchase fungible securities (e.g., same type, coupon, and maturity) on a specified future date at a pre-determined price. During the roll period, the Fund would lose the right to receive principal (including prepayments of principal) and interest paid on the securities sold. However, the Fund would benefit to the extent of any difference between the price received for the securities sold and the lower forward price for the future purchase (often referred to as the "drop") or fee income plus the interest earned on the cash proceeds of the securities sold until the settlement date of the forward purchase. Unless such benefits exceed the income, capital appreciation and gain or loss due to mortgage prepayments that would have been realized on the securities sold as part of the mortgage dollar roll, the use of this technique will diminish the investment performance of the Fund compared with what such performance would have been without the use of mortgage dollar rolls. The Fund will earmark cash or liquid securities to secure its obligation for the forward commitment to buy mortgage-backed securities plus any accrued interest, marked-to-market daily. Mortgage dollar roll transactions may be considered a borrowing under certain circumstances. The mortgage dollar rolls entered into by the Fund may be used as arbitrage transactions in which the Fund will maintain an offsetting position in investment grade debt obligations or repurchase agreements that mature on or before the settlement date of the related mortgage dollar roll. Since the Fund will receive interest on the securities or repurchase agreements in which it invests the transaction proceeds, the transactions may involve leverage.

■ **Mortgage Pass-Through Securities.** Mortgage pass-through securities are securities representing interests in "pools" of mortgages in which payments of both interest and principal on the securities are generally made monthly, in effect "passing through" monthly payments made by the individual borrowers on the residential mortgage loans that underlie the securities (net of fees paid to the issuer or guarantor of the securities). They are issued by governmental, government-related and private organizations which are backed by pools of mortgage loans.

Payment of principal and interest on some mortgage pass-through securities (but not the market value of the securities themselves) may be guaranteed by the full faith and credit of the U.S. Government, as in the case of securities guaranteed by GNMA, or guaranteed by government-sponsored enterprises, as in the case of securities guaranteed by FNMA or FHLMC, which are supported only by the discretionary authority of the U.S. Government to purchase the agency's obligations.

There are a number of important differences among the agencies of the U.S. government and government-sponsored enterprises that issue mortgage-related securities and among the securities that they issue. Such agencies and securities include:

(1) GNMA Mortgage Pass-Through Certificates ("Ginnie Maes") — GNMA is a wholly owned U.S. Government corporation within the U.S. Department of Housing and Urban Development. Ginnie Maes represent an undivided interest in a pool of mortgages that are insured by the Federal Housing Administration or the Farmers Home Administration or guaranteed by the Veterans Administration. Ginnie Maes entitle the holder to receive all payments (including prepayments) of principal and interest owed by the individual mortgagors, net of fees paid to GNMA and to the issuer that assembles the mortgage pool and passes through the monthly mortgage payments to the certificate holders (typically, a mortgage banking firm), regardless of whether the individual mortgagor actually makes the payment. Because payments are made to certificate holders regardless of whether payments are actually received on the underlying mortgages, Ginnie Maes are of the "modified pass-through" mortgage certificate type. GNMA guarantees the timely payment of principal and interest on the Ginnie Maes. GNMA's guarantee is backed by the full faith and credit of the United States, and GNMA has unlimited authority to borrow funds from the U.S. Treasury to make payments under the guarantee. The market for Ginnie Maes is highly liquid because of the government guarantee, the size of the market, and the active participation in the secondary market of security dealers and a variety of investors.

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and guarantees are issued by government entities, private insurers or the mortgage poolers. Although the market for such securities is becoming increasingly liquid, securities issued by certain private organizations may not be readily marketable.

(3) FHLMC Mortgage Participation Certificates ("Freddie Macs") — FHLMC is a government-sponsored enterprise owned by stockholders; it is similar to Fannie Mae. FHLMC issues participation certificates that represent interests in mortgages from its national portfolio. Freddie Macs are not guaranteed by the United States and do not constitute a debt or obligation of the United States. Freddie Macs represent interests in groups of specified first lien residential conventional mortgages underwritten and owned by FHLMC. Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by FHLMC. FHLMC guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans. In cases where FHLMC has not guaranteed timely payment of principal, FHLMC may remit the amount due because of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but in no event later than one year after it becomes payable.

(4) FNMA Guaranteed Mortgage Pass-Through Certificates ("Fannie Maes") — FNMA is a government-sponsored enterprise owned by stockholders; it is similar to Freddie Mac. It is subject to general regulation by the Federal Housing Finance Authority ("FHFA"). Fannie Maes entitle the holder to timely payment of interest, which is guaranteed by FNMA. FNMA guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans. In cases where FNMA has not guaranteed timely payment of principal, FNMA may remit the amount due because of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but in no event later than one year after it becomes payable. 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. 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 U.S. Treasury has historically had the authority to purchase obligations of Fannie Mae and Freddie Mac. However, in 2008, due to capitalization concerns, Congress provided the Treasury with additional authority to lend Fannie Mae and Freddie Mac emergency funds and to purchase their stock. In September 2008, the Treasury and the FHFA announced that FNMA and FHLMC had been placed in conservatorship. Since that time, FNMA and FHLMC have received significant capital support through Treasury preferred stock purchases, as well as Treasury and Federal Reserve purchases of their mortgage - backed securities. The FHFA and the U.S. Treasury (through its agreement to purchase FNMA and FHLMC preferred stock) have imposed strict limits on the size of their mortgage portfolios. While the mortgage-backed securities purchase programs ended in 2010, the Treasury continued its support for the entities' capital as necessary to prevent a negative net worth. When a credit rating agency downgraded long-term U.S. Government debt in August 2011, the agency also downgraded FNMA and FHLMC's bond ratings, from AAA to AA+, based on their direct reliance on the U.S. Government (although that rating did not directly relate to their mortgage-backed securities). In August 2012, the Treasury amended its preferred stock purchase agreements to provide that FNMA's and FHLMC's portfolios will be wound down at an annual rate of 15 percent (up from the previously agreed annual rate of 10 percent), requiring them to reach the $250 billion target by December 31, 2018. FNMA and FHLMC were below the $250 billion cap for year-end 2018.

On December 21, 2017, a letter agreement between the Treasury and Fannie Mae and Freddie Mac changed the terms of the senior preferred stock certificates issued to the Treasury to permit the GSEs each to retain a $3 billion capital reserve, quarterly. Under the 2017 letter, each GSE paid a dividend to Treasury equal to the amount that its net worth exceeded $3 billion at the end of each quarter. On September 30, 2019, the Treasury and the FHFA, acting as conservator to Fannie Mae and Freddie Mac, announced amendments to the respective senior preferred stock certificates that will permit the GSEs to retain earnings beyond the $3 billion capital reserves previously allowed through the 2017 letter agreements. Fannie Mae and Freddie Mac are now permitted to maintain capital reserves of $25 billion and $20 billion, respectively. In late 2020, the FHFA issued a new capital rule requiring Fannie Mae and Freddie Mac to hold $283 billion in unadjusted total capital as of June 30, 2020, based on their assets at the time. In January 2021, the FHFA and the U.S. Treasury agreed to amend the preferred stock purchase agreements for the shares in Fannie Mae and Freddie Mac that the federal government continues to hold. The amendments permit Fannie Mae and Freddie Mac to retain all earnings until they have reached the requirements set by the 2020 capital rule.

The problems faced by FNMA and FHLMC, resulting from their being placed into federal conservatorship and receiving significant U.S. Government support, sparked serious debate among federal policymakers regarding the continued role of the U.S. Government in providing liquidity for mortgage loans. In December 2011, Congress enacted the Temporary Payroll Tax Cut Continuation Act of 2011 which, among other provisions, requires that FNMA and FHLMC increase their single-family guaranty fees by at least 10 basis points and remit this increase to the Treasury with respect to all loans acquired by FNMA or FHLMC on or after April 1, 2012 and before January 1, 2022. There have been discussions among policymakers, however, as to whether FNMA and FHLMC should be nationalized, privatized, restructured or eliminated altogether. FNMA and FHLMC also are the subject of several continuing legal actions and investigations over certain accounting, disclosure or corporate governance matters, which (along with any resulting financial restatements) may continue to have an adverse effect on the guaranteeing entities.

Under the direction of the FHFA, FNMA and FHLMC jointly developed a common securitization platform for the issuance of a uniform mortgage-backed security ("UMBS") (the "Single Security Initiative") that aligns the characteristics of FNMA and FHLMC certificates. In June 2019, under the Single Security Initiative, FNMA and FHLMC started issuing UMBS in place of their prior offerings of TBA-eligible securities. The Single Security Initiative seeks to support the overall liquidity of the TBA market by aligning the characteristics of FNMA and FHLMC certificates. The effects that the Single Security Initiative may have on the market for TBA and other mortgage-backed securities are uncertain.

■ **Stripped Mortgage-Backed Securities ("SMBSs").** SMBS are derivative multi-class mortgage securities. SMBS are created when a U.S. government agency or a financial institution separates the interest and principal components of a MBS and sells them as individual securities. SMBS may be issued by agencies or instrumentalities of the U.S. Government, or by private originators of, or investors in, mortgage loans, including

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savings and loan associations, mortgage banks, commercial banks, investment banks and special purpose entities of the foregoing. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. A common type of SMBS will have one class receiving some of the interest and most of the principal from the mortgage assets, while the other class will receive most of the interest and the remainder of the principal. In the most extreme case, one class will receive all of the interest (the interest-only or "IO" class), while the other class will receive the entire principal (the principal-only or "PO" class). the Fund may invest in both the IO class and the PO class. The prices of stripped MBS may be particularly affected by changes in interest rates. As interest rates fall, prepayment rates tend to increase, which tends to reduce prices of IOs and increase prices of POs. Rising interest rates can have the opposite effect. The yield to maturity on an IO class is extremely sensitive to the rate of principal payments (including pre-payments) on the related underlying mortgage assets, and a rapid rate of principal payments may have a material adverse effect on the Fund's yield to maturity from these securities. If the underlying mortgage assets experience greater than anticipated pre-payments of principal, the Fund may fail to recoup some or all of its initial investment in these securities even if the security is in one of the highest rating categories. The secondary market for stripped MBS may be more volatile and less liquid than that for other MBS, potentially limiting the Fund's ability to buy or sell those securities at any particular time.

**Municipal Securities** — The 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 bonds are issued for a wide variety of reasons, including to construct public facilities, to obtain funds for operating expenses, to refund outstanding municipal obligations, and to loan funds to various public institutions and facilities. 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. An issuer's actual or perceived credit quality can be affected by, among other things, the financial condition of the issuer, the issuer's future borrowing plans and sources of revenue, the economic feasibility of a project or general borrowing purpose, and political or economic developments in the region where the instrument is issued. Local and national market forces, such as declines in real estate prices or general business activity, shifting demographics or political gridlock may result in decreasing tax bases, growing entitlement budgets, and increasing construction and/or maintenance costs and could reduce the ability of certain issuers of municipal securities to repay their obligations.

Municipal securities also are subject to interest rate risk. As with other fixed income securities, an increase in interest rates generally will reduce the value of the Fund's investments in municipal obligations, whereas a decline in interest rates generally will increase that value.

Some municipal securities, including those in the high yield market, may include transfer restrictions (e.g., may only be transferred to qualified institutional buyers and purchasers meeting other qualification requirements set by the issuer). As such, it may be difficult to sell municipal securities at a time when it may otherwise be desirable to do so or the Fund may be able to sell them only at prices that are less than what the Fund regards as their fair market value.

To the extent that municipalities face severe financial hardship, certain state and local governments may have difficulty paying principal or interest when due on their outstanding debt and may experience credit ratings downgrades on their debt. In addition, municipal securities backed by revenues from a project or specified assets may be adversely impacted by a municipality's failure to collect the revenue. The possibility of their defaulting on obligations, and/or declaring bankruptcy where allowable, creates risks to the value of municipal securities held by the Fund. Difficulties in the municipal securities markets could result in increased illiquidity, volatility and credit risk, and a decrease in the number of municipal securities investment opportunities.

The Fund may purchase municipal securities that are fully or partially backed by entities providing credit support such as letters of credit, guarantees, or insurance. The credit quality of the entities that provide such credit support will affect the market values of those securities. The insurance feature of a municipal security guarantees the full and timely payment of interest and principal through the life of an insured obligation. The insurance feature does not, however, guarantee the market value of the insured obligation or the net asset value of the Fund's shares represented by such an insured obligation. The sub-advisor generally looks to the credit quality of the issuer of a municipal security to determine whether the security meets the Fund's quality restrictions, even if the security is covered by insurance. However, a downgrade in the claims-paying ability of an insurer of a municipal security could have an adverse effect on the market value of the security. Certain significant providers of insurance for municipal securities can incur and, in the past have incurred, significant losses as a result of exposure to certain categories of investments, such as sub-prime mortgages and other lower credit quality investments that have experienced defaults or otherwise suffered extreme credit deterioration. Such losses can adversely impact the capital adequacy of these insurers and may call into question the insurers' ability to fulfill their obligations under such insurance if they are called to do so, which could negatively affect the Fund. There are a limited number of providers of insurance for municipal securities and a Fund may have multiple investments covered by one insurer. Accordingly, this may make the value of those investments dependent on the claims-paying ability of that one insurer and could result in share price volatility for the Fund's shares.

In addition, the amount of publicly available information for municipal issuers is generally less than for corporate issuers. Unlike other types of investments, municipal obligations have traditionally not been subject to the registration requirements of the federal securities laws, although there have been proposals to provide for such registration. This lack of SEC regulation has adversely affected the quantity and quality of information available to the bond markets about issuers and their financial condition. The SEC has responded to the need for such information with Rule 15c2-12 under the Securities Exchange Act of 1934, as amended (the "Rule"). The Rule requires that underwriters must reasonably determine that an issuer of municipal securities undertakes in a written agreement for the benefit of the holders of such securities to file with a nationally recognized municipal securities information repository certain information regarding the financial condition of the issuer and material events relating to such securities.

Additionally, the Internal Revenue Service ("Service") occasionally challenges the tax-exempt status of the interest on particular municipal securities. If the Service determined that interest earned on a municipal security the Fund held was taxable and the issuer thereof failed to overcome that determination, that interest would be taxable to the Fund, possibly retroactive to the time the Fund purchased the security.

The municipal securities in which the Fund may invest may include:

■ **Commercial** **Paper.** Commercial paper, the interest on which is exempt from federal income tax, is issued by municipalities to help finance short-term capital or operating needs in anticipation of future tax or other revenue.

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■ **General** **Obligation Bonds.** General obligation bonds are secured by the pledge of the issuer's full faith, credit, and usually, taxing power and are payable from and backed only by the issuer's general unrestricted revenues and not from any particular fund or source. The characteristics and method of enforcement of general obligation bonds vary according to the law applicable to the particular issuer, and payment may be dependent upon appropriation by the issuer's legislative body. 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.

■ **Revenue Obligations**. Revenue obligations, such as industrial development bonds, 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 Exchange-Traded Products** — Investments in the securities of other investment companies may involve duplication of advisory fees and certain other expenses. By investing in another investment company, the Fund becomes a shareholder of that investment company. As a result, Fund shareholders indirectly will bear the Fund's proportionate share of the fees and expenses paid by shareholders of the other investment company, in addition to the fees and expenses Fund shareholders directly bear in connection with the Fund's own operations. The Fund may invest in investment company securities advised by the Manager, and shareholders could pay fees charged by the Manager to such investment company. The Fund's investment in securities of other investment companies, except for money market funds, is generally limited to (i) 3% of the total voting stock of any one investment company, (ii) 5% of the Fund's total assets with respect to any one investment company and (iii) 10% of the Fund's total assets in all investment companies in the aggregate. However, currently the Fund may exceed these limits when investing in shares of an ETF or other investment company subject to a statutory exemption or to the terms and conditions of an exemptive order from the SEC obtained by the ETF or other investment company that permits an investing fund, such as the Fund, to invest in the ETF or other investment company in excess of the limits described above. Rule 12d1-4 under the Investment Company Act and revisions to other rules permitting funds to invest in other investment companies, which are intended to streamline and enhance the regulatory framework applicable to fund of funds arrangements, took effect on January 19, 2022. While Rule 12d1-4 permits more types of fund of fund arrangements without an exemptive order, and supersedes many prior exemptive orders, it imposes new conditions, including limits on control and voting of acquired funds' shares, evaluations and findings by investment advisers, fund investment agreements, and limits on most three-tier fund structures.

The Fund at times may invest in shares of other investment companies and exchange-traded products, which, in addition to the general risks of investments in other investment companies described above, include the following risks:

■ **Money Market Funds.** The Fund can invest free cash balances in registered open-end investment companies regulated as money market funds under the Investment Company Act, to provide liquidity or for defensive purposes. The  Fund would invest in money market funds rather than purchasing individual short-term investments. 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. If the liquidity of a money market fund's portfolio deteriorates below certain levels, the money market fund may suspend redemptions (i.e., impose a redemption gate) and thereby prevent the Fund from selling its investment in the money market fund, or impose a fee of up to 2% on amounts redeemed from the money market fund.

**Participatory Notes** — Participatory notes involve risks that are in addition to the risks normally associated with a direct investment in the underlying equity securities. The Fund is subject to the risk that the issuer of the participatory note (i.e., the issuing bank or broker-dealer), which is the only responsible party under the note, may be unable or refuse to perform under the terms of the participatory note. While the holder of a participatory note is entitled to receive from the issuing bank or broker-dealer any dividends or other distributions paid on the underlying securities, the holder is not entitled to the same rights as an owner of the underlying securities, such as voting rights. Participatory notes are also not traded on exchanges, are privately issued, and may be illiquid. To the extent a participatory note is determined to be illiquid, it would be subject to the Fund's limitation on investments in illiquid securities. There can be no assurance that the trading price or value of participatory notes will equal the value of the underlying equity securities they seek to replicate.

**Pay-in-Kind Securities** — Pay-in-kind securities are debt securities that may pay interest through the issuance of additional securities or in cash. Because these securities may not pay current cash income, their price can be volatile when interest rates fluctuate. Federal income tax law requires a holder of pay-in-kind securities to include in gross income each taxable year the portion of the non-cash income on those securities (i.e., the additional securities issued as interest thereon) accrued during that year.

In order to continue to qualify for treatment as a "regulated investment company" under the Internal Revenue Code and avoid federal excise tax, the Fund may be required to distribute a portion of such non-cash income and may be required to dispose of other portfolio securities in order to generate cash to meet these distribution requirements, including during periods of adverse market prices for those portfolio securities. See the section entitled "Tax Information."

**Preferred Stock** — A preferred stock blends the characteristics of a bond and common stock. It can offer the higher yield of a bond and has priority over common stock in equity ownership but does not have the seniority of a bond, and its participation in the issuer's growth may be limited. Preferred stock generally has preference over common stock in the receipt of dividends and in any residual assets after payment to creditors should the issuer be dissolved. Because preferred stock is subordinate to bonds in the issuer's capital structure, the value of preferred stock will usually react more strongly than bonds and other debt to actual or perceived changes in the company's financial condition or prospects. Although the dividend is set at a fixed or variable rate, in some circumstances it can be changed or omitted by the issuer. Preferred stockholders may have certain rights if dividends are not paid but generally have no legal recourse against the issuer, and may suffer a loss of value as a result. Preferred stocks are subject to the risks associated with other types of equity securities, as well as additional risks, such as credit risk, interest rate risk, potentially greater volatility and risks related to the deferral of dividend payments, the non-cumulative payment of dividends (in which omitted or deferred dividends are not subsequently paid),

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subordination, liquidity, limited voting rights, and special redemption rights. The market prices of preferred stock are generally more sensitive to changes in the issuer's creditworthiness than are the prices of debt securities. Preferred stock also may be subject to optional or mandatory redemption provisions.

**Real Estate Related Investments** — The Fund may gain exposure to the real estate sector by investing in real estate-linked derivatives, REITs, and securities of corporate issuers in real estate-related industries. Adverse economic, business or political developments affecting real estate could have a major effect on the value of the 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 Fund's investment in real estate securities. Real estate securities are dependent upon specialized management skills at the operating company level. Such securities also have limited diversification and are, therefore, subject to risks inherent in operating and financing a limited number of properties. Real estate securities are 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 the Fund's portfolio.

**Separately Traded Registered Interest and Principal Securities and Other Zero-Coupon Obligations** — Separately traded registered interest and principal securities or "STRIPS" and other zero-coupon obligations are securities that do not make regular interest payments. Instead, they are sold at a discount from their face value, and accrue interest over the life of the bond. The Fund will take into account as income a portion of the difference between these obligations' purchase prices and their face values. Because they do not pay coupon income, the prices of STRIPS and zero-coupon obligations can be very volatile when interest rates change, and their values may fluctuate more than the value of similar securities that pay interest periodically. STRIPS are zero-coupon bonds issued by the U.S. Treasury.

**Small-Capitalization Companies Risk** — Investing in the securities of small-capitalization companies involves greater risk and the possibility of greater price volatility, which at times can be rapid and unpredictable, than investing in larger capitalization and more established companies, since smaller companies may have limited operating history, product lines, and financial resources. The securities of these companies may lack sufficient market liquidity and they can be particularly sensitive to expected changes in overall economic conditions, interest rates, borrowing costs and earnings.

**Sovereign and Quasi-Sovereign Government and Supranational Debt** — Sovereign debt securities may include: debt securities issued or guaranteed by governments, governmental agencies or instrumentalities and political subdivisions located in emerging market countries; debt securities issued by government owned, controlled or sponsored entities located in 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 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.

Investments in debt securities issued or guaranteed by foreign governments and their political subdivisions or agencies involve special risks not present in corporate debt obligations. Sovereign debt is subject to risks in addition to those relating to non-U.S. investments generally. The issuer of the debt or the governmental authorities that control the repayment of the debt may be unable or unwilling to repay principal and/or interest when due in accordance with the terms of such debt, and the Fund may have limited legal recourse in the event of a default. As a sovereign entity, the issuing government may be immune from lawsuits in the event of its failure or refusal to pay the obligations when due.

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. Legal recourse is therefore somewhat diminished when the issuer is a foreign government or its political subdivisions or agencies. Political conditions, especially a sovereign entity's willingness to meet the terms of its debt obligations, are of considerable significance. Also, holders of commercial bank debt issued by the same sovereign entity may contest payments to the holders of sovereign debt in the event of default under commercial bank loan agreements.

A sovereign debtor's willingness or ability to repay principal and interest due in a timely manner may be affected by, among other factors, its cash flow situation, insufficient foreign currency reserves, the availability of sufficient non-U.S. exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole, the sovereign debtor's policy toward principal international lenders, the failure to implement economic reforms required by the International Monetary Fund or other multilateral agencies and the political constraints to which a sovereign debtor may be subject. Increased protectionism on the part of a country's trading partners or political changes in those countries could also adversely affect its exports. Such events could diminish a country's trade account surplus, if any, or the credit standing of a particular local government or agency.

Sovereign debtors' ability to repay their obligations may also be dependent on disbursements or assistance from foreign governments or multinational agencies, the country's access to trade and other international credits, and the country's balance of trade. The receipt of assistance from other governments or multinational agencies is not assured. Assistance may be dependent on a country's implementation of austerity measures and reforms, which may be politically difficult to implement. These measures may limit or be perceived to limit economic growth and recovery. In the past, some sovereign debtors have rescheduled their debt payments, declared moratoria on payments or restructured their debt to effectively eliminate portions of it, and similar occurrences may happen in the future. There is no bankruptcy proceeding by which sovereign debt on which governmental entities have defaulted may be collected in whole or in part.

The occurrence of political, social or diplomatic changes in one or more of the countries issuing sovereign debt could adversely affect the Fund's investments. Political changes or a deterioration of a country's domestic economy or balance of trade may affect the willingness of countries to service their sovereign debt. While the Manager and sub-advisors endeavor to manage investments in a manner that will minimize the exposure to such risks, there can be no assurance that adverse political changes will not cause the Fund to suffer a loss of interest or principal on any of its holdings.

Brady Bonds. Brady Bonds may be collateralized or uncollateralized and issued in various currencies (although most are dollar-denominated), and they are actively traded in the over-the-counter secondary market. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero coupon bonds having the same maturity as the Brady Bonds. Brady Bonds are not, however, considered to be U.S. Government securities. Interest payments on Brady Bonds are often collateralized by cash or securities in an amount that, in the case of fixed rate bonds, is equal to at least one year of rolling interest payments or, in the case of floating

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rate bonds, initially is equal to at least one year's rolling interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter. Certain Brady Bonds are entitled to "value recovery payments" in certain circumstances, which in effect constitute supplemental interest payments, but generally are not collateralized. Brady Bonds are often viewed as having three or four valuation components: (i) collateralized repayment of principal at final maturity; (ii) collateralized interest payments; (iii) uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity (these uncollateralized amounts constitute the "residual risk"). In the event of a default with respect to Collateralized Brady Bonds as a result of which the payment obligations of the issuer are accelerated, the U.S. Treasury zero coupon obligations held as collateral for the payment of principal will not be distributed to investors, nor will such obligations be sold and the proceeds distributed. The collateral will be held by the collateral agent to the scheduled maturity of the defaulted Brady Bonds, which will continue to be outstanding, at which time the face amount of the collateral will equal the principal payments which would have been due on the Brady Bonds in the normal course. Brady Bonds involve various risk factors including residual risk and the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady Bonds. There can be no assurance that Brady Bonds in which the Fund may invest will not be subject to restructuring arrangements or to requests for new credit, which may cause the Fund to suffer a loss of interest or principal on any of its holdings.

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. Obligations of supranational entities are subject to the risk that the governments on whose support the entity depends for its financial backing or repayment may be unable or unwilling to provide that support. Obligations of a supranational entity that are denominated in foreign currencies will also be subject to the risks associated with investments in foreign currencies, as described above in the section "Currencies Risk."

**Supranational Risk** — Supranational organizations are entities designated or supported by a government or governmental group to promote economic development. Supranational organizations have no taxing authority and are dependent on their members for initial and ongoing 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. Obligations of supranational entities are subject to the risk that the governments on whose support the entity depends for its financial backing or repayment may be unable or unwilling to provide that support. Obligations of a supranational entity that are denominated in foreign currencies will also be subject to the risks associated with investments in foreign currencies, as described above in the section "Currencies Risk."

**Trust Preferred Securities** — The Fund may invest in trust preferred securities. Trust preferred securities have the characteristics of both subordinated debt and preferred stock. Generally, trust preferred securities are issued by a trust that is wholly owned by a financial institution or other corporate entity, typically a bank holding company. The financial institution creates the trust and owns the trust's common securities. The trust uses the sale proceeds of its common securities to purchase subordinated debt issued by the financial institution. The financial institution uses the proceeds from the subordinated debt sale to increase its capital while the trust receives periodic interest payments from the financial institution for holding the subordinated debt. The trust uses the funds received to make dividend payments to the holders of the trust preferred securities. The primary advantage of this structure is that the trust preferred securities are treated by the financial institution as debt securities for tax purposes and as equity for the calculation of capital requirements.

Trust preferred securities typically bear a market rate coupon comparable to interest rates available on debt of a similarly rated issuer. Typical characteristics include long-term maturities, early redemption by the issuer, periodic fixed or variable interest payments, and maturities at face value. Holders of trust preferred securities have limited voting rights to control the activities of the trust and no voting rights with respect to the financial institution. The market value of trust preferred securities may be more volatile than those of conventional debt securities. Trust preferred securities may be thinly traded and the Fund may not be able to dispose of them at a favorable price. Trust preferred securities may be issued in reliance on Rule 144A under the Securities Act and subject to restrictions on resale. There can be no assurance as to the liquidity of trust preferred securities and the ability of holders, such as the Fund, to sell their holdings. Please refer to "Illiquid and Restricted Securities" above for further discussion of regulatory considerations and constraints related to such securities. As the trust typically has no business operations other than to issue the trust preferred securities, the condition of the financial institution could have an impact on the Fund. If the financial institution defaults on interest payments to the trust, the trust will not be able to make dividend payments to holders of its securities, such as the Fund.

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

**Valuation Risk** — This is the risk that certain securities may be valued at a price different from the price at which they can be sold. This risk may be especially pronounced for investments, such as certain credit-linked notes and other 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. The valuation of the Fund's 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 or other conditions make it difficult to value certain investments, SEC rules and applicable accounting protocols may require the valuation of these investments using more subjective methods, such as fair-value methodologies. Using fair value methodologies to price

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investments may result in a value that is different from an investment's most recent closing price and from the prices used by others for the same investment. No assurance can be given that such prices accurately reflect the price the Fund would receive upon sale of a security. An investment's valuation may differ depending on the method used for determining value. Investors who purchase or redeem Fund shares on days when the Fund is holding fair-valued securities may receive fewer or more shares, or lower or higher redemption proceeds, than they would have received if the securities had not been fair valued or a different valuation methodology had been used. 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 the Fund determines its NAV.

**Value Companies Risk** — Value companies are subject to the risk that their intrinsic or full value may never be realized by the market, that a stock judged to be undervalued may be appropriately priced, or that their prices may go down. While the Fund's investments in value stocks may limit its downside risk over time, the Fund may produce more modest gains than riskier stock funds as a trade-off for this potentially lower risk. Different investment styles tend to shift in and out of favor, depending on market conditions and investor sentiment. The Fund's investments in value stocks may underperform growth or non-value stocks that have a broader investment style.

**Variable or Floating Rate Obligations** — Variable and floating rate securities provide for a periodic adjustment in the interest rate paid on the obligations. A variable rate obligation has a coupon rate which is adjusted at predesignated periods in response to changes in the market rate of interest on which the coupon is based. The adjustment intervals may be regular, and range from daily up to annually, or may be event based, such as based on a change in the prime rate. 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 Fund may invest in 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 one or three months. While, because of the interest rate reset feature, floaters provide the Fund with a certain degree of protection against rises in interest rates, the Fund 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.

**When-Issued and Forward Commitment Transactions** — These transactions involve a commitment by the Fund to purchase or sell securities with payment and delivery to take place at a future date, typically one to two months after the date of the transaction. The payment obligations and interest rate are fixed at the time the buyer enters into the transaction. These transactions enable the Fund to "lock-in" what the Manager or a sub-advisor, as applicable, believes to be an attractive price or yield on a particular security for a period of time, regardless of future changes in interest rates. For instance, in periods of rising interest rates and falling prices, the Fund might sell securities it owns on a forward commitment basis to limit its exposure to falling prices. In periods of falling interest rates and rising prices, the Fund might purchase a security on a when-issued or forward commitment basis and sell a similar security to settle such purchase, thereby obtaining the benefit of currently higher yields. Forward commitment transactions are executed for existing obligations, whereas in a when-issued transaction, the obligations have not yet been issued.

The value of securities purchased on a when-issued or forward commitment basis and any subsequent fluctuations in their value are reflected in the computation of the Fund's NAV starting on the date of the agreement to purchase the securities. Because the Fund has not yet paid for the securities, this produces an effect similar to leverage. The Fund does not earn interest on securities it has committed to purchase until the securities are paid for and delivered on the settlement date. When the Fund makes a forward commitment to sell securities it owns, the proceeds to be received upon settlement are included in its assets. Fluctuations in the market value of the underlying securities are not reflected in the Fund's NAV as long as the commitment to sell remains in effect.

When entering into a when-issued or forward commitment transaction, the Fund will rely on the other party to consummate the transaction; if the other party fails to do so, the Fund may be disadvantaged. If the other party fails to complete the trade, the Fund may lose the opportunity to obtain a favorable price. For purchases on a when-issued basis, the price of the security is fixed at the date of purchase, but delivery of and payment for the securities is not set until after the securities are issued. The value of when-issued securities is subject to market fluctuation during the interim period and no income accrues to the Fund until settlement takes place. Such transactions therefore involve a risk of loss if the value of the security to be purchased declines prior to the settlement date or if the value of the security to be sold increases prior to the settlement date. A sale of a when-issued security also involves the risk that the other party will be unable to settle the transaction. When-issued, delayed-delivery and forward commitment transactions may cause the Fund to liquidate positions when it may not be advantageous to do so in order to satisfy its purchase or sale obligations.

Under the Derivatives Rule, when-issued, delayed-delivery and forward commitment transactions will be deemed not to involve a senior security, provided that: the Fund intends to physically settle the transaction; and the transaction will settle within 35 days of its trade date. If such transactions are deemed senior securities, the Fund will maintain with its custodian segregated (or earmarked) liquid securities in an amount at least equal to the when-issued or forward commitment transaction. Earmarking or otherwise segregating a large percentage of the Fund's assets could impede the sub-advisors' ability to manage the Fund's portfolio.

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**OTHER INVESTMENT STRATEGIES AND RISKS**

In addition to the investment strategies and risks described in the PPM, the Fund may:

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| **1** | Engage in dollar rolls or purchase or sell securities on a when-issued or forward commitment basis. The purchase or sale of when-issued securities enables an investor to hedge against anticipated changes in interest rates and prices by locking in an attractive price or yield. The price of when-issued securities is fixed at the time the commitment to purchase or sell is made, but delivery and payment for the when-issued securities takes place at a later date, normally one to two months after the date of purchase. During the period between purchase and settlement, no payment is made by the purchaser to the issuer and no interest accrues to the purchaser. Such transactions therefore involve a risk of loss if the value of the security to be purchased declines prior to the settlement date or if the value of the security to be sold increases prior to the settlement date. A sale of a when-issued security also involves the risk that the other party will be unable to settle the transaction. Dollar rolls are a type of forward commitment transaction. Purchases and sales of securities on a forward commitment basis involve a commitment to purchase or sell securities with payment and delivery to take place at some future date, normally one to two months after the date of the transaction. As with when-issued securities, these transactions involve certain risks, but they also enable an investor to hedge against anticipated changes in interest rates and prices. Forward commitment transactions are executed for existing obligations, whereas in a when-issued transaction, the obligations have not yet been issued. |

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| **2** | Invest in other investment companies (including affiliated investment companies) to the extent permitted by the Investment Company Act, or exemptive relief granted by the SEC. |

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| **3** | Loan securities to broker-dealers or other institutional investors. Securities loans will not be made if, as a result, the aggregate amount of all outstanding securities loans by the Fund exceeds 33¹/<sub>3</sub>% of its total assets (including the market value of collateral received). For purposes of complying with the Fund's investment policies and restrictions, collateral received in connection with securities loans is deemed an asset of the Fund to the extent required by law. |

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| **4** | Enter into repurchase agreements. A repurchase agreement is an agreement under which securities are acquired by the Fund from a securities dealer or bank subject to resale at an agreed upon price on a later date. The Fund bears a risk of loss in the event that the other party to a repurchase agreement defaults on its obligations and the Fund is delayed or prevented from exercising its rights to dispose of the collateral securities. However, the Manager or the sub-advisor, as applicable, attempts to minimize this risk by entering into repurchase agreements only with financial institutions that are deemed to be of good financial standing. |

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| **5** | Purchase 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. The Fund will not invest more than 15% of its net assets in Section 4(a)(2) securities and illiquid securities unless the Manager or the sub-advisor, as applicable, determines that any Section 4(a)(2) securities held by the Fund in excess of this level are liquid. |

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**INVESTMENT RESTRICTIONS**

**Fundamental Policies**. The Fund has the following fundamental investment policy that enables it to invest in another investment company or series thereof that has substantially similar investment objectives and policies:

Notwithstanding any other limitation, the Fund may invest all of its investable assets in an open-end management investment company with substantially the same investment objectives, policies and limitations as the Fund. For this purpose, "all of the Fund's investable assets" means that the only investment securities that will be held by the Fund will be the Fund's interest in the investment company.

The Fund has no current intention to convert to a master-feeder structure, as permitted by the foregoing policy.

**Fundamental Investment Restrictions**. The following discusses the investment policies of the Fund. The following restrictions have been adopted by the Fund and may be changed with respect to the Fund only by the majority vote of the Fund's outstanding voting securities. "Majority of the outstanding voting securities" under the Investment Company Act and as used herein means, with respect to the Fund, the lesser of (a) 67% of the shares of the Fund present at the meeting if the holders of more than 50% of the shares are present and represented at the shareholders' meeting or (b) more than 50% of the shares of the Fund.

The Fund may not:

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| **1** | Purchase or sell real estate or real estate limited partnership interests, provided, however, that the Fund may dispose of real estate acquired as a result of the ownership of securities or other instruments and invest in securities secured by real estate or interests therein or issued by companies which invest in real estate or interests therein when consistent with the other policies and limitations described in the Prospectus. |

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| **2** | Invest in physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the Fund from purchasing or selling foreign currency, options, futures contracts, options on futures contracts, forward contracts, swaps, caps, floors, collars, securities on a forward-commitment or delayed-delivery basis, and other similar financial instruments). |

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| **3** | Engage in the business of underwriting securities issued by others, except to the extent that, in connection with the disposition of securities, the Fund may be deemed an underwriter under federal securities law. |

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| **4** | Lend any security or make any other loan except (i) as otherwise permitted under the Investment Company Act, (ii) pursuant to a rule, order or interpretation issued by the SEC or its staff, (iii) through the purchase of a portion of an issue of debt securities in accordance with the Fund's investment objective, policies and limitations, or (iv) by engaging in repurchase agreements. |

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| **5** | Issue any senior security except as otherwise permitted (i) under the Investment Company Act or (ii) pursuant to a rule, order or interpretation issued by the SEC or its staff. |

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| **6** | Borrow money, except as otherwise permitted under the Investment Company Act or pursuant to a rule, order or interpretation issued by the SEC or its staff, including (i) as a temporary measure, (ii) by entering into reverse repurchase agreements, and (iii) by lending portfolio securities as |

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collateral. For purposes of this investment limitation, the purchase or sale of options, futures contracts, options on futures contracts, forward contracts, swaps, caps, floors, collars and other similar financial instruments shall not constitute borrowing.

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| **7** | Invest more than 5% of its total assets (taken at market value) in securities of any one issuer, other than obligations issued by the U.S. Government, its agencies and instrumentalities, or purchase more than 10% of the voting securities of any one issuer, with respect to 75% of the Fund's total assets. |

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| **8** | Invest more than 25% of its assets in the securities of companies primarily engaged in any particular industry or group of industries provided that this limitation does not apply to (i) obligations issued by or guaranteed by the U.S. Government, its agencies or instrumentalities; and (ii) tax exempt securities issued by municipalities and their agencies and authorities. |

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The above percentage limits are based upon asset values at the time of the applicable transaction; accordingly, a subsequent change in asset values will not affect a transaction that was in compliance with the investment restrictions at the time such transaction was effected. For purposes of the Fund's policy relating to making loans set forth in (4) above, securities loans will not be made if, as a result, the aggregate amount of all outstanding securities loans by the Fund exceeds 33¹/<sub>3</sub>% of its total assets (including the market value of collateral received).

For purposes of the Fund's policy relating to issuing senior securities set forth in (5) above, "senior securities" are defined as Fund obligations that have a priority over the Fund's shares with respect to the payment of dividends or the distribution of Fund assets. The Investment Company Act prohibits the Fund from issuing any class of senior securities or selling any senior securities of which it is the issuer, except that the Fund is permitted to borrow from a bank so long as, immediately after such borrowings, there is an asset coverage of at least 300% for all borrowings of the Fund (not including borrowings for temporary purposes in an amount not exceeding 5% of the value of the Fund's total assets). In the event that such asset coverage falls below this percentage, the Fund is required to reduce the amount of its borrowings within three days (not including Sundays and holidays) so that the asset coverage is restored to at least 300%. Consistent with guidance issued by the SEC and its staff, the requisite asset coverage may vary among different types of instruments. The policy in (5) above will be interpreted not to prevent collateral arrangements with respect to swaps, options, forward or futures contracts or other derivatives, or the posting of initial or variation margin.

For purposes of the Fund's industry concentration policy, the Manager may analyze the characteristics of a particular issuer and instrument and may assign an industry classification consistent with those characteristics. The Manager may, but need not, consider industry classifications provided by third parties, and the classifications applied to Fund investments will be informed by applicable law. A large economic or market sector shall not be construed as a single industry or group of industries. The Manager currently considers securities issued by a foreign government (but not the U.S. Government or its agencies or instrumentalities) to be an "industry" subject to the 25% limitation. Thus, not more than 25% of the Fund's assets will be invested in securities issued by any one foreign government or supranational organization. The Fund might invest in certain securities issued by companies in a particular industry whose obligations are guaranteed by a foreign government. The Manager could consider such a company to be within the particular industry and, therefore, the Fund will invest in the securities of such a company only if it can do so under its policy of not being concentrated in any particular industry or group of industries.

The above percentage limits (except the limitation on borrowings) are based upon asset values at the time of the applicable transaction; accordingly, a subsequent change in asset values will not affect a transaction that was in compliance with the investment restrictions at the time such transaction was effected. With respect to the fundamental investment restriction relating to making loans set forth in number 4 above, securities loans will not be made if, as a result, the aggregate amount of all outstanding securities loans by the Fund exceeds 33¹/<sub>3</sub>% of its total assets (including the market value of collateral received).

For purposes of the Fund's policy relating to issuing senior securities set forth in (5) above, "senior securities" are defined as Fund obligations that have a priority over the Fund's shares with respect to the payment of dividends or the distribution of Fund assets. The Investment Company Act prohibits the Fund from issuing any class of senior securities or selling any senior securities of which it is the issuer, except that the Fund is permitted to borrow from a bank so long as, immediately after such borrowings, there is an asset coverage of at least 300% for all borrowings of the Fund (not including borrowings for temporary purposes in an amount not exceeding 5% of the value of the Fund's total assets). In the event that such asset coverage falls below this percentage, the Fund is required to reduce the amount of its borrowings within three days (not including Sundays and holidays) so that the asset coverage is restored to at least 300%. Consistent with guidance issued by the SEC and its staff, the requisite asset coverage may vary among different types of instruments. The policy in (5) above will be interpreted not to prevent collateral arrangements with respect to swaps, options, forward or futures contracts or other derivatives, or the posting of initial or variation margin.

**Non-Fundamental Investment Restrictions**. The following non-fundamental investment restrictions apply to the Fund and may be changed with respect to the Fund by a vote of a majority of the Board. The Fund may not:

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| **1** | Invest more than 15% of its net assets in illiquid securities, including time deposits and repurchase agreements that mature in more than seven days; or |

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| **2** | Purchase securities on margin, except that (1) the Fund may obtain such short term credits as necessary for the clearance of transactions, and (2) the Fund may make margin payments in connection with foreign currency, futures contracts, options, forward contracts, swaps, caps, floors, collars, securities purchased or sold on a forward-commitment or delayed-delivery basis or other financial instruments. |

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All percentage limitations on investments will apply at the time of the making of an investment and shall not be considered violated unless an excess or deficiency occurs or exists immediately after and as a result of such investment. Except for the investment restrictions listed above as fundamental or to the extent designated as such in the PPM, the other investment policies described in this SAI are not fundamental and may be changed by approval of the Trustees.

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**TEMPORARY OR DEFENSIVE INVESTMENTS**

In times of unstable or adverse market, economic, political or other conditions, where the Manager or the sub-advisors believe it is appropriate and in the Fund's best interest, the Fund can invest up to 100% in cash and other types of securities for defensive or temporary purposes. It can also hold cash or purchase these types of securities for liquidity purposes to meet cash needs due to redemptions of Fund shares, or to hold while waiting to invest cash received from purchases of Fund shares or the sale of other portfolio securities.

These temporary investments can include: (i) obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities; (ii) commercial paper rated in the highest short-term category by a rating organization; (iii) domestic, Yankee and Eurodollar certificates of deposit or bankers' acceptances of banks rated in the highest short-term category by a rating organization; (iv) any of the foregoing securities that mature in one year or less (generally known as "cash equivalents"); (v) other short-term corporate debt obligations; (vi) repurchase agreements; (vii) futures; or (viii) shares of money market funds, including funds advised by the Manager or the sub-advisors.

**PORTFOLIO TURNOVER**

Portfolio turnover is a measure of trading activity in a portfolio of securities, usually calculated over a period of one year. The rate is calculated by dividing the lesser amount of purchases or sales of securities by the average amount of securities held over the period. A portfolio turnover rate of 100% would indicate that the Fund sold and replaced the entire value of its securities holdings during the period. High portfolio turnover can increase the Fund's transaction costs and generate additional capital gains or losses.

Portfolio turnover may vary significantly from year to year due to a variety of factors, including fluctuating volume of shareholder purchase and redemption orders, market conditions, investment strategy changes, and/or changes in a sub-advisor's investment outlook.

**DISCLOSURE OF PORTFOLIO HOLDINGS**

The Fund publicly discloses portfolio holdings information as follows:

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| **1** | a complete list of holdings for the Fund on an annual and semi-annual basis in the reports to shareholders within sixty days of the end of each fiscal semi-annual period and in publicly available filings of Form N-CSR with the SEC within ten days thereafter (available on the SEC's website at www.sec.gov); |

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| **2** | a complete list of holdings for the Fund as of the end of each fiscal quarter in publicly available filings of Form N-PORT with the SEC within sixty days of the end of the fiscal quarter (available on the SEC's website at www.sec.gov). |

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**Disclosure of Nonpublic Holdings**.

Occasionally, certain interested parties — including investors and their representatives, third-party service providers, and others — may request portfolio holdings information that has not yet been publicly disclosed by the Fund. The Fund's policy is to control the disclosure of nonpublic portfolio holdings information in an attempt to prevent parties from utilizing such information to engage in trading activity harmful to Fund shareholders. To this end, the Board has adopted a Policy and Procedures for Disclosure of Portfolio Holdings Information (the "Holdings Policy"). The purpose of the Holdings Policy is to define those interested parties who are authorized to receive nonpublic portfolio holdings information on a selective basis and to set forth conditions upon which such information may be provided. In general, nonpublic portfolio holdings may be disclosed on a selective basis only when it is determined that (i) there is a legitimate business purpose for the information; (ii) recipients are subject to a duty of confidentiality, including a duty not to trade on the nonpublic information; and (iii) disclosure is in the best interests of Fund shareholders. The Holdings Policy does not restrict the Fund from disclosing that a particular security is not a holding of the Fund. The Holdings Policy is summarized below.

The Manager will provide the Fund's investors and their representatives with regular reporting on nonpublic portfolio holdings. Such disclosure shall be provided in such a manner as to not favor one investor over another.

A variety of third-party service providers require access to Fund holdings to provide services to the Fund or to assist the Manager and the sub-advisor(s) in managing the Fund ("service providers"). The service providers have a duty to keep the Fund's nonpublic information confidential either through written contractual arrangements with the Fund (or another Fund service provider) or by the nature of their role with respect to the Fund (or the service provider). The Fund has determined that disclosure of nonpublic holdings information to service providers fulfills a legitimate business purpose and is in the best interest of shareholders. In addition, the Fund has determined that disclosure of nonpublic holdings information to members of the Board fulfills a legitimate business purpose, is in the best interest of Fund shareholders, and each Trustee is subject to a duty of confidentiality.

The Fund has ongoing arrangements to provide nonpublic holdings information to the following service providers:

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| **Service Provider** | **Service** | **Holdings Access** |
| Manager | Investment management and administrator | Complete list on intraday basis with no lag |
| Sub-Advisor | Investment management | Holdings under sub-advisor's management on intraday basis with no lag |
| State Street Bank and Trust Co. ("State Street") and its designated foreign sub-custodians | Funds' custodian and foreign custody manager, and foreign sub-custodians | Complete list on intraday basis with no lag |
| ACA Performance Services | GIPS verification for a sub-advisor | Complete list on a monthly basis with a lag |
| Advent Custodial Data (ACD) | Custodian reconciliation system for a sub-advisor | Complete list on a monthly basis with a lag |
| Bloomberg, L.P. | Performance and portfolio analytics reporting | Complete list on intraday basis with no lag |

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| **Service Provider** | **Service** | **Holdings Access** |
| Broadridge/ProxyEdge | Proxy voting research provider for sub-advisor | Partial list on a daily basis with lag |
| Brown Brothers Harriman | Corporate Action Management for a sub-advisor | Complete list daily with a lag |
| BondEdge | Financial analytic database for a sub-advisor | Complete list daily with a lag |
| Charles River Development | Trading system services and support for a sub-advisor | Partial list on a daily basis with a lag |
| Eagle Investment Systems Corp. | Portfolio accounting System for a sub-advisor | Complete list on a daily basis with no lag |
| PricewaterhouseCoopers LLP | Fund's independent registered public accounting firm | Complete list on intraday basis with no lag |
| FactSet | Financial analytic database and research management system for a sub-advisor | Complete list daily with a lag |
| FXTransparency | Trade Execution Assessment for a sub-advisor | Complete list on weekly basis with no lag |
| Glass Lewis & Co., LLC | Proxy voting services for sub-advisor | Complete list on intraday basis with no lag |
| Institutional Shareholder Services ("ISS") | Proxy voting research provider to sub-advisors, and share recall services provider to the Manager | Complete list on intraday basis with no lag |
| Investment Technology Group, Inc. | Fair valuation of portfolio securities for Fund with significant foreign securities holdings | Complete list on daily basis with no lag and more frequently when the Manager seeks advice with respect to certain holdings |
| KPMG International | Service provider to State Street | Complete list on annual basis with lag |
| Northern Trust | Back office operation for a sub-advisor | Complete list daily basis with no lag |
| State Street Investment Management Services | Back-office operations for a sub-advisor | Complete list daily with no lag |

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Certain third parties are provided with nonpublic holdings information (either complete or partial lists) by the Manager or another service provider on an ad hoc basis. These third parties include: broker-dealers, prospective sub-advisors, borrowers of the Fund's portfolio securities, pricing services, legal counsel, and issuers (or their agents). Broker-dealers utilized by the Fund in the process of purchasing and selling portfolio securities or providing market quotations receive limited holdings information on a current basis with no lag. The Manager provides current holdings to investment managers being considered for appointment as a sub-advisor to the Fund. If the Fund participates in securities lending activities, potential borrowers of the Fund's securities receive information pertaining to the Fund's securities available for loan. Such information is provided on a current basis with no lag. The Fund utilizes various pricing services to supply market quotations and evaluated prices to State Street. State Street and the Manager may disclose current nonpublic holdings to those pricing services. An investment manager may provide holdings information to legal counsel when seeking advice regarding those holdings. From time to time, an issuer (or its agent) may contact the Fund requesting confirmation of ownership of the issuer's securities. Such holdings information is provided to the issuer (or its agent) as of the date requested. The Fund does not have written contractual arrangements with these third parties regarding the confidentiality of the holdings information. However, the Fund would not continue to utilize a third party that the Manager determined to have misused nonpublic holdings information.

No compensation or other consideration may be paid to the Fund, the Fund's service providers, or any other party in connection with the disclosure of portfolio holdings information.

Under the Holdings Policy, disclosure of nonpublic portfolio holdings information to parties other than those discussed above must meet all of the following conditions:

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| **1** | Recipients of portfolio holdings information must agree in writing to keep the information confidential until it has been made public and not to trade based on the information; |

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| **2** | Holdings may only be disclosed as of a month-end date; |

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| **3** | No compensation may be paid to the Fund, the Manager or any other party in connection with the disclosure of information about portfolio securities; and |

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| **4** | A member of the Manager's Compliance staff must approve requests for nonpublic holdings information. |

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In determining whether to approve a request for portfolio holdings disclosure by the Manager, Compliance staff generally considers the type of requestor and its relationship to the Fund, the stated reason for the request, any historical pattern of requests from that same individual or entity, the style and strategy of the Fund for which holdings have been requested (e.g., passive versus active management), whether the Fund is managed by one or multiple investment managers, and any other factors it deems relevant. Any potential conflicts between shareholders and affiliated persons of the Fund that arise as a result of a request for portfolio holdings information shall be decided by the Manager in the best interests of shareholders. However, if a conflict exists between the interests of shareholders and the Manager, the Manager may present the details of the request to the Board for a determination to either approve or deny the request. On a quarterly basis, the Manager will prepare a report for the Board outlining any instances of disclosures of nonpublic holdings during the period that did not comply with the Holdings Policy. The Compliance staff generally determines whether a historical pattern of requests by the same individual or entity constitutes an "ongoing arrangement" and should be disclosed in the Fund's SAI.

The Manager and the sub-advisor(s) to the Fund may manage substantially similar portfolios for clients other than the Fund. Those other clients may receive and publicly disclose their portfolio holdings information prior to public disclosure by the Fund. The Holdings Policy is not intended to limit the Manager or a sub-advisor from making such disclosures to their clients.

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**LENDING OF PORTFOLIO SECURITIES**

The Fund may lend securities from its portfolio to brokers, dealers and other financial institutions needing to borrow securities to complete certain transactions. In connection with such loans, the Fund remains the beneficial owner of the loaned securities and continues to be entitled to payments in amounts approximately equal to the interest, dividends or other distributions payable on the loaned securities. The Fund also has the right to terminate a loan at any time. The Fund does not have the right to vote on securities while they are on loan. However, it is the Fund's policy to attempt to terminate loans in time to vote those proxies that the Fund determines are material to its interests. Loans of portfolio securities may not exceed 33¹/<sub>3</sub>% of the value of the Fund's total assets (including the value of all assets received as collateral for the loan). The Fund will receive collateral consisting of cash in the form of cash or cash equivalents, securities of the U.S. Government and its agencies and instrumentalities, approved bank letters of credit, or other forms of collateral that are permitted by the SEC for registered investment companies, which will be maintained at all times in an amount equal to at least 100% of the current market value of the loaned securities. If the collateral consists of cash, the Fund will reinvest the cash and may pay the borrower a pre-negotiated fee or "rebate" for the use of that cash collateral. Under the terms of the securities loan agreement between the Fund and State Street, its securities lending agent, State Street indemnifies the Fund for certain losses resulting from a borrower default. However, should the borrower of the securities fail financially, the Fund may experience delays in recovering the loaned securities or exercising its rights in the collateral. In a loan transaction, the Fund will also bear the risk of any decline in value of securities acquired with cash collateral. The Fund seeks to minimize this risk by normally limiting the investment of cash collateral to registered money market funds, including money market funds advised by the Manager that invest in U.S. Government and agency securities.

For all funds that engage in securities lending, the Manager receives compensation for administrative and oversight functions with respect to securities lending, including oversight of the securities lending agent. The amount of such compensation depends on the income generated by the loan of the securities.

As of the date of this SAI, the Fund intends to engage in securities lending activities.

**TRUSTEES AND OFFICERS OF THE TRUST**

**The Board of Trustees**

The Trust is governed by its Board of Trustees. The Board is responsible for and oversees the overall management and operations of the Trust and the Fund, which includes the general oversight and review of the Fund's investment activities, in accordance with federal law and the law of the State of Delaware as well as the stated policies of the Fund. The Board oversees the Trust's officers and service providers, including American Beacon Advisors, Inc. ("American Beacon"), which is responsible for the management of the day-to-day operations of the Fund based on policies and agreements reviewed and approved by the Board. In carrying out these responsibilities, the Board regularly interacts with and receives reports from senior personnel of service providers, including American Beacon's investment personnel and the Trust's Chief Compliance Officer ("CCO"). The Board also is assisted by the Trust's independent registered public accounting firm (which reports directly to the Trust's Audit and Compliance Committee), independent counsel and other experts as appropriate, all of whom are selected by the Board.

*Risk Oversight*

Consistent with its responsibility for oversight of the Trust and the Fund, the Board oversees the management of risks relating to the administration and operation of the Trust and the Fund. American Beacon, as part of its responsibilities for the day-to-day operations of the Fund, is responsible for day-to-day risk management for the Fund. The Board, in the exercise of its reasonable business judgment, also separately considers potential risks that may impact the Fund. The Board performs this risk management oversight directly and, as to certain matters, through its committees (described below) and through the Board members who are not "interested persons" of the Trust as defined in Section 2(a)(19) of the Investment Company Act ("Independent Trustees"). The following provides an overview of the principal, but not all, aspects of the Board's oversight of risk management for the Trust and the Fund.

In general, the Fund's risks include, among others, investment risk, credit risk, liquidity risk, securities selection risk and valuation risk. The Board has adopted, and periodically reviews, policies and procedures designed to address these and other risks to the Trust and the Fund. In addition, under the general oversight of the Board, American Beacon, the Fund's investment adviser, and other service providers to the Fund have themselves adopted a variety of policies, procedures and controls designed to address particular risks to the Fund. Different processes, procedures and controls are employed with respect to different types of risks. Further, American Beacon as manager of the Fund oversees and regularly monitors the investments, operations and compliance of the Fund's investment advisers.

The Board also oversees risk management for the Trust and the Fund through review of regular reports, presentations and other information from officers of the Trust and other persons. Senior officers of the Trust, and senior officers of American Beacon, and the Fund's CCO regularly report to the Board on a range of matters, including those relating to risk management. The Board and the Investment Committee also regularly receive reports from American Beacon with respect to the investments, securities trading and securities lending activities of the Fund, as applicable. In addition to regular reports from American Beacon, the Board also receives reports regarding other service providers to the Trust, either directly or through American Beacon or the Fund's CCO, on a periodic or regular basis. At least annually, the Board receives a report from the Fund's CCO regarding the effectiveness of the Fund's compliance program. Also, typically on an annual basis, the Board receives reports, presentations and other information from American Beacon in connection with the Board's consideration of the renewal of each of the Trust's agreements with American Beacon and the Trust's distribution plans under Rule 12b-1 under the Investment Company Act.

Senior officers of the Trust and American Beacon also report regularly to the Audit and Compliance Committee on Fund valuation matters and on the Trust's internal controls and accounting and financial reporting policies and practices. In addition, the Audit and Compliance Committee receives regular reports from the Trust's independent registered public accounting firm on internal control and financial reporting matters. On at least a quarterly basis, the Audit and Compliance Committee meets with the Fund's CCO to discuss matters relating to the Fund's compliance program.

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*Board Structure and Related Matters*

Independent Trustees constitute at least three-quarters of the Board. Brenda A. Cline, an Independent Trustee, serves as Independent Chair of the Board. The Independent Chair's responsibilities include: setting an agenda for each meeting of the Board; presiding at all meetings of the Board and Independent Trustees; and serving as a liaison with other Trustees, the Trust's officers and other management personnel, and counsel to the Fund. The Independent Chair shall perform such other duties as the Board may from time to time determine.

The Trustees discharge their responsibilities collectively as a Board, as well as through Board committees, each of which operates pursuant to a charter approved by the Board that delineates the responsibilities of that committee. The Board has established three standing committees: the Audit and Compliance Committee, the Investment Committee and the Nominating and Governance Committee. For example, the Investment Committee is responsible for oversight of the process, typically performed annually, by which the Board considers and approves the Fund's investment advisory agreement with American Beacon, while specific matters related to oversight of the Fund's independent auditors have been delegated by the Board to its Audit and Compliance Committee, subject to approval of the Audit and Compliance Committee's recommendations by the Board. The members and responsibilities of each Board committee are summarized below.

The Board periodically evaluates its structure and composition as well as various aspects of its operations. The Board believes that its leadership structure, including its Independent Chair position and its committees, is appropriate for the Trust in light of, among other factors, the asset size and nature of the funds in the Trust, the number of series of the American Beacon Funds Complex overseen by the Board, the arrangements for the conduct of the Fund's operations, the number of Trustees, and the Board's responsibilities. On an annual basis, the Board conducts a self-evaluation that considers, among other matters, whether the Board and its committees are functioning effectively and whether, given the size and composition of the Board and each of its committees, the Trustees are able to oversee effectively the number of Funds in the complex.

The Trust is part of the American Beacon Funds Complex, which is comprised of 25 series within the American Beacon Funds, 1 series within the American Beacon Institutional Funds Trust, and 1 series within the American Beacon Select Funds. The same persons who constitute the Board of the Trust also constitute the Board of Trustees of the American Beacon Funds, and the American Beacon Select Funds and each Trustee oversees the Trusts' combined 27 series.

The Board holds five (5) regularly scheduled meetings each year. The Board may hold special meetings, as needed, either in person or by telephone, to address matters arising between regular meetings. The Independent Trustees also hold at least one in-person meeting each year during a portion of which management is not present and may hold special meetings, as needed, either in person or by telephone.

The Trustees of the Trust are identified in the tables below, which provide information as to their principal business occupations and directorships held during the last five years and certain other information. Subject to the Trustee Retirement Plan described below, a Trustee serves until his or her successor is elected and qualified or until his or her earlier death, resignation or removal. The address of each Trustee listed below is 220 East Las Colinas Boulevard, Suite 1200, Irving, Texas 75039. Each Trustee serves for an indefinite term or until his or her removal, resignation, or retirement.\*

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| | | | |
|:---|:---|:---|:---|
| **Name (Age)<sup>\*</sup>** | **Position and** **Length of Time** **Served on the** **American Beacon** **Funds and** **American Beacon** **Select Funds** | **Position and** **Length of Time** **Served on the** **American Beacon** **Institutional** **Funds Trust** | **Principal Occupation(s) and Directorships During Past 5 Years** |
| **INTERESTED** **TRUSTEE** |  |  |  |
| Eugene J. Duffy<br>(68)<sup>\*\*</sup> | Trustee since 2008 | Trustee since 2017 | 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 Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021). |
| **NON-INTERESTED** **TRUSTEES** |  |  |  |
| Gilbert G. Alvarado<br>(53) | Trustee since 2015 | Trustee since 2017 | Chief Financial Officer, The Conrad Prebys Foundation (2022-Present); 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 Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021). |
| Joseph B. Armes<br>(61) | Trustee since 2015 | Trustee since 2017 | 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. (investment company) (2014-2017); 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 Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021). |

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| | | | |
|:---|:---|:---|:---|
| **Name (Age)** **<sup>\*</sup>** | **Position and** **Length of Time** **Served on the** **American Beacon** **Funds and** **American Beacon** **Select Funds** | **Position and** **Length of Time** **Served on the** **American Beacon** **Institutional** **Funds Trust** | **Principal Occupation(s) and Directorships During Past 5 Years** |
| Gerard J. Arpey<br>(64) | Trustee since 2012 | Trustee since 2017 | 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. (NYSE: HD) (2015-Present); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021). |
| Brenda A. Cline<br>(62) | Chair since 2019<br> Vice Chair 2018<br> Trustee since 2004 | Chair since 2019<br> Vice Chair 2018<br> Trustee since 2017 | 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 (2) and Open-End Funds (3) (2017-2021); Chair, American Beacon Sound Point Enhanced Income Fund (2019-2021), Vice Chair (2018), Trustee (2018-2021); Chair, American Beacon Apollo Total Return Fund (2019-2021), Vice Chair (2018), Trustee (2018-2021). |
| Claudia A. Holz<br>(65) | Trustee since 2018 | Trustee since 2018 | Independent Director, Blue Owl Capital Inc. (2021-Present); Partner, KPMG LLP (1990-2017); Trustee, American Beacon Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021). |
| Douglas A. Lindgren<br>(61) | Trustee since 2018 | 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 Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021). |
| Barbara J. McKenna<br>(59) | Trustee since 2012 | Trustee since 2017 | 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 Sound Point Enhanced Income Fund (2018-2021); Trustee, American Beacon Apollo Total Return Fund (2018-2021). |

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\* The Board has adopted a retirement policy 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 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.

In addition to the information set forth in the tables above and other relevant qualifications, experience, attributes or skills applicable to a particular Trustee, the following provides further information about the qualifications and experience of each Trustee.

Gilbert G. Alvarado: Mr. Alvarado has extensive organizational management and financial experience as senior vice president and chief financial officer in public charities and private foundations, service as director of private companies and non-profit organizations, service as president of non-profit institutional investment fund, an adjunct professor for a non-profit school of management at University of San Francisco, and multiple years of service as a Trustee.

Joseph B. Armes: Mr. Armes has extensive financial, investment and organizational management experience as chairman of the board of directors, president and chief executive officer of an investment company listed on NASDAQ, president and chief executive officer of a private family investment vehicle, chief operating officer of a private holding company for a family office, president, chief executive officer, chief financial officer and director of a special purpose acquisition company listed on the American Stock Exchange, a director and audit committee chair of an oil and gas exploration and production company listed on the New York Stock Exchange and as an officer of public companies and as a director and officer of private companies, and multiple years of service as a Trustee.

Gerard J. Arpey: Mr. Arpey has extensive organizational management, financial and international experience serving as chairman, chief executive officer, and chief financial officer of one of the largest global airlines, service as a director of public and private companies, service to several charitable organizations, and multiple years of service as a Trustee.

Brenda A. Cline: Ms. Cline has extensive organizational management, financial and investment experience as executive vice president, chief financial officer, secretary and treasurer to a private foundation, service as a director, trustee, audit committee chair, and member of the nominating and governance committees of various publicly held companies and mutual funds, service as a trustee to a private university, and several charitable boards, including acting as a member of their investment and/or audit committees, extensive experience as an audit senior manager with a large public accounting firm, and multiple years of service as a Trustee.

Eugene J. Duffy: Mr. Duffy has extensive experience in the investment management business and organizational management experience as a member of senior management, service as a director of a bank, service as a chairman of a charitable fund and as a trustee to an association, service on the board of a private university and non-profit organization, service as chair to a financial services industry association, and multiple years of service as a Trustee.

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Claudia A. Holz: Ms. Holz has extensive financial audit and organizational management experience obtained as an audit partner with a major public accounting firm for over 27 years. Prior to her retirement, she led audits of large public investment company complexes and held several management roles in the firm's New York and national offices.

Douglas A. Lindgren: Mr. Lindgren has extensive senior management experience in the asset management industry, having overseen several organizations and numerous fund structures and having served as an Adjunct Professor of Finance at Columbia Business School.

Barbara J. McKenna: Ms. McKenna has extensive experience in the investment management industry, organizational management experience as a member of senior management, service as a director of an investment manager, member of numerous financial services industry associations, and multiple years of service as a Trustee.

*Committees of the Board*

The Trust has an Audit and Compliance Committee ("Audit Committee"). The Audit Committee consists of Mses. Holz (Chair) and McKenna, and Messrs. Armes and Duffy. Ms. Cline, as Chair of the Board, serves on the Audit Committee in an ex-officio non-voting capacity. As set forth in its charter, the primary duties of the Trust's Audit Committee are: (a) to oversee the accounting and financial reporting processes of the Trust and the Fund and their internal controls and, as the Committee deems appropriate, to inquire into the internal controls of certain third-party service providers; (b) to oversee the quality and integrity of the Trust's financial statements and the independent audit thereof; (c) to approve, prior to appointment, the engagement of the Trust's independent auditors and, in connection therewith, to review and evaluate the qualifications, independence and performance of the Trust's independent auditors; (d) to oversee the Trust's compliance with all regulatory obligations arising under applicable federal securities laws, rules and regulations and oversee management's implementation and enforcement of the Trust's compliance policies and procedures ("Compliance Program"); and (e) to coordinate the Board's oversight of the Trust's CCO in connection with his or her implementation of the Trust's Compliance Program. The Audit Committee met four (4) times during the fiscal year ended October 31, 2022.

The Trust has a Nominating and Governance Committee ("Nominating Committee") that is comprised of Messrs. Armes (Chair) and Alvarado, and Mses. Cline and McKenna. As set forth in its charter, the Nominating Committee's primary duties are: (a) to make recommendations regarding the nomination of non-interested Trustees to the Board; (b) to make recommendations regarding the appointment of an Independent Trustee as Chair of the Board; (c) to evaluate qualifications of potential "interested" members of the Board and Trust officers; (d) to review shareholder recommendations for nominations to fill vacancies on the Board; (e) to make recommendations to the Board for nomination for membership on all committees of the Board; (f) to consider and evaluate the structure, composition and operation of the Board; (g) to review shareholder recommendations for proposals to be submitted for consideration during a meeting of Fund shareholders; and (h) to consider and make recommendations relating to the compensation of Independent Trustees and of those officers as to whom the Board is charged with approving compensation. Shareholder recommendations for Trustee candidates may be mailed in writing, including a comprehensive resume and any supporting documentation, to the Nominating Committee in care of the Secretary of the Fund, and must otherwise comply with the Declaration of Trust and By-Laws of the Trust. The Nominating and Governance Committee met four (4) times during the fiscal year ended October 31, 2022.

The Trust has an Investment Committee that is comprised of Messrs. Lindgren (Chair), Alvarado and Arpey. Ms. Cline, as Chair of the Board, serves on the Investment Committee in an ex-officio non-voting capacity. As set forth in its charter, the Investment Committee's primary duties are: (a) to review and evaluate the short- and long-term investment performance of the Manager and each of the designated sub-advisors to the Fund; (b) to evaluate recommendations by the Manager regarding the hiring or removal of designated sub-advisors to the Fund; (c) to review material changes recommended by the Manager to the allocation of Fund assets to a sub-advisor; (d) to review proposed changes recommended by the Manager to the investment objectives or principal investment strategies of the Fund; and (e) to review proposed changes recommended by the Manager to the material provisions of the advisory agreement with a sub-advisor, including, but not limited to, changes to the provision regarding compensation. The Investment Committee met four (4) times during the fiscal year ended October 31, 2022.

*Trustee Ownership in the Fund*

As of the calendar year ended December 31, 2022, none of the Trustees owned equity securities of the Fund. The following table shows the amount of equity securities owned in the American Beacon Funds Complex by the Trustees as of the calendar year ended December 31, 2022.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** |
|  | **Duffy** |  |  |  |  |  |  |
| **Aggregate Dollar Range of Equity Securities in all Trusts** **(27 Funds as of** **December 31, 2022)** | Over $100,000 |  |  |  |  |  |  |
| **NON-INTERESTED TRUSTEES** | **NON-INTERESTED TRUSTEES** | **NON-INTERESTED TRUSTEES** | **NON-INTERESTED TRUSTEES** | **NON-INTERESTED TRUSTEES** | **NON-INTERESTED TRUSTEES** | **NON-INTERESTED TRUSTEES** | **NON-INTERESTED TRUSTEES** |
|  | **Alvarado** | **Armes** | **Arpey** | **Cline** | **Holz** | **Lindgren** | **McKenna** |
| **Aggregate Dollar Range of Equity Securities in all Trusts** **(27 Funds as of** **December 31, 2022)** | Over $100,000 | Over $100,000 | Over $100,000 | Over $100,000 | Over $100,000 | Over $100,000 | Over $100,000 |

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*Trustee Compensation*

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 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

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educational seminars. For this purpose, the Board considers attendance at regular meetings held by videoconference 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 a single $2,500 fee each quarter for her attendance at the Audit Committee and Investment Committee meetings. The chairpersons of the Audit 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.

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|:---|:---|:---|
| The following table shows total compensation (excluding reimbursements) paid by the Trusts to each Trustee for the fiscal year ended October 31, 2022. | The following table shows total compensation (excluding reimbursements) paid by the Trusts to each Trustee for the fiscal year ended October 31, 2022. | The following table shows total compensation (excluding reimbursements) paid by the Trusts to each Trustee for the fiscal year ended October 31, 2022. |
| **Name of Trustee** | **Aggregate Compensation from the Trust** | **Total Compensation from the Trusts** |
| **INTERESTED TRUSTEE** |  |  |
| Eugene J. Duffy | $4636 | $215500 |
| **NON-INTERESTED TRUSTEES\*** |  |  |
| Gilbert G. Alvarado | $5110 | $237500 |
| Joseph B. Armes | $4873 | $226500 |
| Gerard J. Arpey | $4529 | $210500 |
| Brenda A. Cline<sup>1</sup> | $5863 | $272500 |
| Claudia A. Holz | $4593 | $213500 |
| Douglas A. Lindgren | $4593 | $213500 |
| Barbara J. McKenna | $4663 | $216750 |

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1 Upon her retirement from the Board, Ms. Cline is eligible for flight benefits afforded to Eligible Trustees who served on the Boards prior to September 12, 2008 as described below.

The Boards have adopted a Trustee Retirement Plan. The Trustee Retirement Plan provides that a Trustee who has served on the Boards prior to September 12, 2008, and who has reached a mandatory retirement age established by the Board (currently 75) is eligible to elect Trustee Emeritus status ("Eligible Trustees"). Eligible Trustees who have served on the Board of one or more Trusts for at least five years may elect to retire from the Board at an earlier age and immediately assume Trustee Emeritus status. The Board has determined that, other than the Trustee Retirement Plan established for Eligible Trustees, no other retirement benefits will accrue for current or future Trustees. Ms. Cline is the only Eligible Trustee.

Each Eligible Trustee and his or her spouse (or designated companion) may receive annual flight benefits from the Trusts of up to $40,000 combined, on a tax-grossed up basis, on American Airlines (a subsidiary of the Manager's former parent company) for a maximum period of 10 years, depending upon length of service prior to September 12, 2008. Eligible Trustees may opt to receive instead an annual retainer of $20,000 from the Trusts in lieu of flight benefits. No retirement benefits are accrued for Board service after September 12, 2008.

A Trustee Emeritus must be reasonably available to provide advice, counseling and assistance to the Trustees and American Beacon as needed, as agreed to from time to time by the parties involved; however, a Trustee Emeritus does not have any voting rights at Board meetings and is not subject to election by shareholders of the Fund. Currently, three individuals who retired from the Board and accrued retirement benefits for periods prior to September 12, 2008, have assumed Trustee Emeritus status. Two individuals and their spouses receive annual flight benefits of up to $40,000 combined, on a tax-grossed up basis, on American Airlines. The other individual receives an annual retainer of $20,000 from the Trusts in lieu of flight benefits.

**Principal Officers of the Trust**

The Officers of the Trust conduct and supervise its daily business. As of the date of this SAI, the Officers of the Trust, their ages, their business address and their principal occupations and directorships during the past five years are as set forth below. The address of each Officer is 220 East Las Colinas Boulevard, Suite 1200, Irving, Texas 75039. Each Officer serves for a term of one year or until his or her resignation, retirement, or removal. Each Officer has and continues to hold the same position with the American Beacon Funds, the American Beacon Select Funds, and the American Beacon Institutional Funds Trust.

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| | | | |
|:---|:---|:---|:---|
| **Name (Age)** | **Position and** **Length of Time** **Served on the** **American Beacon** **Funds and** **American Beacon** **Select Funds** | **Position and** **Length of Time** **Served on the** **American Beacon** **Institutional** **Funds Trust** | **Principal Occupation(s) and Directorships During Past 5 Years** |
| **OFFICERS** |  |  |  |
| Jeffrey K. Ringdahl<br>(48) | President<br>since April 2022<br> Vice President<br>2010-2022 | President<br>since April 2022<br> Vice President<br>2017-2022 | 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 and 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 and 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) and Vice President (2014-2022), American Beacon Cayman Managed Futures Strategy Fund, Ltd.; Director (2018-Present) and, President (2022-Present), Vice President (2018-2022), American Beacon Cayman TargetRisk Company, Ltd.; Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021). |
| Rosemary K. Behan<br>(64) | Vice President, Secretary and Chief Legal Officer<br>since 2006 | Vice President, Secretary and Chief Legal Officer<br>since 2017 | 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, LLC (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, LLC (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); Vice President, Secretary, and Chief Legal Officer, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, Secretary, and Chief Legal Officer, American Beacon Apollo Total Return Fund (2018-2021). |
| Paul B. Cavazos<br>(53) | Vice President<br>since 2016 | Vice President<br>since 2017 | Chief Investment Officer and Senior Vice President, American Beacon Advisors, Inc. (2016-Present); Vice President, American Private Equity Management, L.L.C. (2017-Present); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021). |
| Erica B. Duncan<br>(52) | Vice President<br>since 2011 | Vice President<br>since 2017 | Vice President, American Beacon Advisors, Inc. (2011-Present); Vice President, Resolute Investment Managers, Inc. (2018-Present); Vice President, Resolute Investment Services, Inc. (2018-Present); Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021). |

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| | | | |
|:---|:---|:---|:---|
| **Name (Age)** | **Position and** **Length of Time** **Served on the** **American Beacon** **Funds and** **American Beacon** **Select Funds** | **Position and** **Length of Time** **Served on the** **American Beacon** **Institutional** **Funds Trust** | **Principal Occupation(s) and Directorships During Past 5 Years** |
| Rebecca L. Harris<br>(56) | Vice President<br>Since 2022 | Vice President<br>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 (2017-2021), Resolute Investment Services, Inc.; Vice President, Alpha Quant Advisors, LLC (2016-2020); Vice President (2018-2022), Director (2022) Continuous Capital, LLC; Director (2022-Present) National Investment Services of America, LLC; Director (2022-Present) RSW Investments Holdings LLC; Director (2022-Present) Shapiro Capital Management LLC; Director (2022-Present) SSI Investment Management LLC; Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021); Assistant Secretary, American Beacon Funds (2010 – 2022); Assistant Secretary, American Beacon Select Funds (2010 – 2022); Assistant Secretary, American Beacon Institutional Funds Trust (2017 – 2022). |
| Terri L. McKinney<br>(59) | Vice President<br>since 2010 | Vice President<br>since 2017 | 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 Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021). |
| Samuel J. Silver<br>(60) | Vice President<br>since 2011 | Vice President<br>since 2017 | Vice President (2011-Present), Chief Fixed Income Officer (2016-Present), American Beacon Advisors, Inc.; Vice President, American Beacon Sound Point Enhanced Income Fund (2018-2021); Vice President, American Beacon Apollo Total Return Fund (2018-2021). |
| Melinda G. Heika<br>(61) | Vice President<br>since 2021 | Vice President<br>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, 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.; Principal Accounting Officer and Treasurer, American Beacon Funds (2010-2021); Principal Accounting Officer and Treasurer, American Beacon Select Funds (2010-2021); Principal Accounting Officer and Treasurer, American Beacon Institutional Funds Trust (2017-2021); Principal Accounting Officer and Treasurer (2018-2021), Vice President (2021), American Beacon Sound Point Enhanced Income Fund; Principal Accounting Officer and Treasurer (2018-2021), Vice President (2021), American Beacon Apollo Total Return Fund (2018-2021). |
| Gregory Stumm<br>(41) | Vice President<br>since 2022 | Vice President<br>since 2022 | Senior Vice President, American Beacon Advisors, Inc. (2022-Present); Senior Vice President, Resolute Investment Managers, Inc. (2022-Present); Senior Vice President, Resolute Investment Services, Inc. (2022-Present); Director and Senior Vice President, Resolute Investment Distributors, Inc. (2022-Present). |
| Sonia L. Bates<br>(66) | Principal Accounting Officer and Treasurer<br>since 2021 | Principal Accounting Officer and Treasurer<br>since 2021 | Assistant Treasurer, American Beacon Advisors, Inc. (2011-2018); Director, Fund and Tax Reporting (2011-Present), 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) and Assistant Treasurer (2018-2022), American Beacon Cayman TargetRisk Company, Ltd.; Assistant Treasurer (2018-2021), Principal Accounting Officer and Treasurer (2021), American Beacon Sound Point Enhanced Income Fund; Assistant Treasurer (2019-2021), Principal Accounting Officer and Treasurer (2021), American Beacon Apollo Total Return Fund; Assistant Treasurer, American Beacon Funds (2011-2021); Assistant Treasurer, American Beacon Select Funds (2011-2021); Assistant Treasurer, American Beacon Institutional Funds Trust (2017-2021). |

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| | | | |
|:---|:---|:---|:---|
| **Name (Age)** | **Position and** **Length of Time** **Served on the** **American Beacon** **Funds and** **American Beacon** **Select Funds** | **Position and** **Length of Time** **Served on the** **American Beacon** **Institutional** **Funds Trust** | **Principal Occupation(s) and Directorships During Past 5 Years** |
| Christina E. Sears<br>(51) | Chief Compliance Officer<br>since 2004<br>Assistant Secretary<br>since 1999 | Chief Compliance Officer and Assistant Secretary<br>since 2017 | 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, Inc. (2017-Present); Vice President, Resolute Investment Services, Inc. (2019-Present); Chief Compliance Officer, American Private Equity Management, LLC (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), Vice President (2016-2020), Alpha Quant Advisors, LLC; Chief Compliance Officer (2018-2019), Vice President (2018-2022), Continuous Capital, LLC.; 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). |
| Shelley L. Dyson<br>(53) | Assistant Treasurer<br>since 2021 | Assistant Treasurer<br>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 Sound Point Enhanced Income Fund (2021); Assistant Treasurer, American Beacon Apollo Total Return Fund (2021). |
| Shelley D. Abrahams<br>(48) | Assistant Secretary<br>since 2008 | Assistant Secretary<br>since 2017 | Senior Corporate Governance & Regulatory Specialist (2020-Present), 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 Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021). |
| Michael D. Jiang<br>(38) | Assistant Secretary<br>since 2021 | Assistant Secretary<br>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), 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 Sound Point Enhanced Income Fund (2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2021). |
| Teresa A. Oxford<br>(64) | Assistant Secretary<br>since 2015 | Assistant Secretary<br>since 2017 | Assistant Secretary and Associate General Counsel (2015-Present), American Beacon Advisors, Inc.; Assistant Secretary (2018-2021), Resolute Investment Distributors, Inc.; Assistant Secretary and Associate General Counsel (2017-Present), Resolute Investment Managers, Inc.; Assistant Secretary and Associate General Counsel (2018-Present), Resolute Investment Services, Inc.; Assistant Secretary (2016-2020), Alpha Quant Advisors, LLC; Assistant Secretary (2020-2022), Continuous Capital, LLC.; Assistant Secretary, American Beacon Sound Point Enhanced Income Fund (2018-2021); Assistant Secretary, American Beacon Apollo Total Return Fund (2018-2021). |

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**CODE OF ETHICS**

The Manager, the Trust, the Distributor, and the sub-advisors each have adopted a Code of Ethics under Rule 17j-1 of the Investment Company Act. Each Code of Ethics significantly restricts the personal trading of all employees with access to non-public portfolio information. For example, each Code of Ethics generally requires pre-clearance of all personal securities trades (with limited exceptions) and prohibits employees from purchasing or selling a security that is being purchased or sold or being considered for purchase (with limited exceptions) or sale by any Fund. In addition, the Manager's and the Trust's Code of Ethics requires employees to report trades in shares of the Trusts. Each Code of Ethics is on public file with, and may be obtained from, the SEC.

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**PROXY VOTING POLICIES**

From time to time, the Fund may own a security whose issuer solicits a proxy vote on certain matters. The Board seeks to ensure that proxies are voted in the best interests of the Fund's shareholders and has delegated proxy voting authority to the Manager. The Manager in turn has delegated proxy voting authority to the sub-advisors with respect to the Fund's assets under a sub-advisor's management. The Trust has adopted a Proxy Voting Policy and Procedures (the "Policy") that governs proxy voting by the Manager and sub-advisors, including procedures to address potential conflicts of interest between the Fund's shareholders and the Manager, the sub-advisors or their affiliates. The Board has approved the Manager's proxy voting policies and procedures with respect to Fund assets under the Manager's management. Please see Appendix A for a copy of the Policy. The sub-advisors' proxy voting policy and procedures are summarized (or included in their entirety) in Appendix B. The Fund's proxy voting record for the most recent year ended June 30 is available as of August 31 of each year upon request and without charge by calling 1-800-967-9009 or by visiting the SEC's website at http://www.sec.gov. The proxy voting record can be found in Form N-PX on the SEC's website.

**CONTROL PERSONS AND 5% SHAREHOLDERS**

A principal shareholder is any person who owns of record or beneficially 5% or more of any class of the Fund's outstanding shares. A control person is a shareholder that owns beneficially or through controlled companies more than 25% of the voting securities of a company or acknowledges the existence of control. Shareholders owning voting securities in excess of 25% may determine the outcome of any matter affecting and voted on by shareholders of the Fund. The actions of an entity or person that controls the Fund could have an effect on other shareholders. For instance, a control person may have effective voting control over the Fund or large redemptions by a control person could cause the Fund's other shareholders to pay a higher pro rata portion of the Fund's expenses.

Set forth below are entities or persons that own 5% or more of the outstanding shares of a class of the Fund as of January 31, 2023. The Trustees and officers of the Trusts, as a group, did not own more than 1% of any class of the Fund's shares outstanding.

**American Beacon Diversified Fund**

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| | | |
|:---|:---|:---|
| **Shareholder Address** | **Fund** **Percentage** **(listed if** **over 25%)** | **AAL CLASS** |
| STATE STREET BANK AND TRUST CUST |  | 23.68% |
| FBO AMERICAN AIRLINES INC HEATH |  |  |
| BENEFITS TRUST FOR TWU EMPLOYEES |  |  |
| (EMPLOYER) ATTN GREG KARASINSKI |  |  |
| 1200 CROWN COLONY DR |  |  |
| QUINCY MA 02169-0938 |  |  |
| STATE STREET BANK AND TRUST CUST | 50.93% | 50.93% |
| FBO AMERICAN AIRLINES INC LONG TERM |  |  |
| DISABILITY PLAN ATTN GREG |  |  |
| KARASINSKI |  |  |
| 1200 CROWN COLONY DR |  |  |
| QUINCY MA 02169-0938 |  |  |
| STATE STREET BANK AND TRUST CUST |  | 15.21% |
| FBO NON-UNION POST-TAX SUPPLEMENTAL |  |  |
| MEDICAL ATTN GREG KARASINSKI |  |  |
| 1200 CROWN COLONY DR |  |  |
| QUINCY MA 02169-0938 |  |  |

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**INVESTMENT SUB-ADVISORY AGREEMENTS**

The Fund's sub-advisors are listed below with information regarding their controlling persons or entities. According to the Investment Company Act, a person or entity with control with respect to an investment advisor has "the power to exercise a controlling influence over the management or policies of a company, unless such power is solely the result of an official position with such company." Persons and entities affiliated with the sub-advisors are considered affiliates of the Fund.

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| | | |
|:---|:---|:---|
| **Aristotle Capital Management, LLC** | **Aristotle Capital Management, LLC** | **Aristotle Capital Management, LLC** |
| **Controlling Person/Entity** | **Basis of Control** | **Nature of Controlling Person/Entity Business** |
| Howard Gleicher | Majority Owner | Financial Services |
| RCB Acquisition Company, LLC | Majority Owner | Holding Company |
| The sub-advisor is located at 11100 Santa Monica Blvd., Suite 1700, Los Angeles, CA 90025 | The sub-advisor is located at 11100 Santa Monica Blvd., Suite 1700, Los Angeles, CA 90025 | The sub-advisor is located at 11100 Santa Monica Blvd., Suite 1700, Los Angeles, CA 90025 |

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| | | |
|:---|:---|:---|
| **Barrow, Hanley, Mewhinney & Strauss, LLC** **("Barrow")** |  |  |
| **Controlling Person/Entity** | **Basis of Control** | **Nature of Controlling Person/Entity Business** |
| Perpetual Limited | Parent Company | Financial Services |

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| | | |
|:---|:---|:---|
| **Brandywine Global Investment Management, LLC ("Brandywine Global")** | **Brandywine Global Investment Management, LLC ("Brandywine Global")** | **Brandywine Global Investment Management, LLC ("Brandywine Global")** |
| **Controlling Person/Entity** | **Basis of Control** | **Nature of Controlling Person/Entity Business** |
| Legg Mason, Inc. | Direct Owner | Financial Services |
| Franklin Resources, Inc. | Indirect Owner | Financial Services |

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| | | |
|:---|:---|:---|
| **Hotchkis and Wiley Capital Management, LLC** **("Hotchkis")** |  |  |
| **Controlling Person/Entity** | **Basis of Control** | **Nature of Controlling Person/Entity Business** |
| HWCap Holdings, LLC | Majority Owner | Financial Services |
| Stephens-H&W, LLC | Minority Owner | Financial Services |

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| | | |
|:---|:---|:---|
| **Lazard Asset Management LLC ("Lazard")** |  |  |
| **Controlling Person/Entity** | **Basis of Control** | **Nature of Controlling Person/Entity Business** |
| Lazard Freres & Co. LLC | Parent Company | Financial Services |

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| | | |
|:---|:---|:---|
| **WCM Investment Management, LLC ("WCM")** |  |  |
| **Controlling Person/Entity** | **Basis of Control** | **Nature of Controlling Person/Entity Business** |
| Kurt Winrich | Minority Owner | Financial Services |
| Paul Black | Minority Owner | Financial Services |

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The Trust, on behalf of the Fund, and the Manager have entered into an Investment Advisory Agreement with each sub-advisor pursuant to which the Fund pays each sub-advisor an annualized sub-advisory fee that is calculated and accrued daily based on a percentage of the Fund's average daily net assets. The aggregate contractual sub-advisory fee rate to be paid by the Fund to the sub-advisors is 0.33% of the Fund's average daily net assets. Each Investment Advisory Agreement will automatically terminate if assigned, and may be terminated without penalty at any time by the Manager, by a vote of a majority of the Trustees or by a vote of a majority of the outstanding voting securities of the Fund on no less than thirty (30) days' nor more than sixty (60) days' written notice to the sub-advisor, or by the sub-advisor upon sixty (60) days' written notice to the Trust. The Investment Advisory Agreements will continue in effect for an initial period of two years and thereafter from year to year provided that annually such continuance is specifically approved by a vote of the Trustees, including the affirmative votes of a majority of the Trustees who are not parties to the Agreement or "interested persons" (as defined in the Investment Company Act) of any such party, cast in person at a meeting called for the purpose of considering such approval, or by the vote of shareholders.

**MANAGEMENT, ADMINISTRATIVE, SECURITIES LENDING, AND DISTRIBUTION SERVICES**

**The Manager**

The Manager, located at 220 East Las Colinas Boulevard, Suite 1200, Irving, Texas 75039 is a Delaware corporation and a wholly-owned subsidiary of Resolute Investment Managers, Inc. ("RIM"). 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. The address of Kelso and its investment funds is 320 Park Avenue, 24th Floor, New York, NY 10022. The address of Estancia and its investment fund is 20865 N 90th Place, Suite 200, Scottsdale, AZ 85255. The address of RIH is 220 East Las Colinas Boulevard, Suite 1200, Irving, TX 75039.<br>Listed below are individuals and entities that may be deemed control persons of the Manager.

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| | | |
|:---|:---|:---|
| **Controlling Person/Entity** | **Basis of Control** | **Nature of Controlling Person/Entity's Business** |
| Resolute Investment Holdings, LLC | Parent Company | Holding Company - Founded in 2015 |
| Kelso Investment Associates VIII, L.P. | Ownership in Parent Company | Investment Fund |

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The Manager is paid a management fee as compensation for providing the Fund with management and administrative services. The Management Agreement provides for the Manager to receive an annualized management fee of 0.10% based on a percentage of the Fund's average daily net assets that is calculated and accrued daily.

Operating expenses directly attributable to a specific class are charged against the assets of that class. Pursuant to the Management Agreement, the Manager provides the Trust with office space, office equipment and personnel necessary to manage and administer the Trust's operations. This includes:

■ complying with reporting requirements;

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■ corresponding with shareholders;

■ maintaining internal bookkeeping, accounting and auditing services and records;

■ supervising the provision of services to the Trust by third parties; and

■ administering the interfund lending facility and lines of credit, if applicable.

In addition to its oversight of the sub-advisors, the Manager may invest the portion of the Fund's assets that the sub-advisor(s) determine to be allocated to short-term investments.

The Fund is responsible for expenses not otherwise assumed by the Manager, including the following: audits by independent auditors; transfer agency, custodian, dividend disbursing agent and shareholder recordkeeping services; taxes, if any, and the preparation of the Fund's tax returns; interest; costs of Trustee and shareholder meetings; preparing, printing and mailing PPMs and reports to existing shareholders; fees for filing reports with regulatory bodies and the maintenance of the Fund's existence; legal fees; fees to federal and state authorities for the registration of shares; fees and expenses of Trustees; insurance and fidelity bond premiums; fees paid to service providers providing reports regarding adherence by sub-advisors to the investment style of the Fund; fees paid for brokerage commission analysis for the purpose of monitoring best execution practices of the sub-advisors; and any extraordinary expenses of a nonrecurring nature.

The Manager has contractually agreed from time to time to waive fees and/or reimburse expenses for the Fund in order to maintain competitive expense ratios for the Fund. The contractual expense reimbursement can be changed or terminated only in the discretion and with the approval of a majority of the Fund's Board of Trustees. The Manager will itself waive fees and/or reimburse expenses of the Fund to maintain the contractual expense ratio caps for the Fund or make arrangements with other service providers to do so. The Manager may also, from time to time, voluntarily waive fees and/or reimburse expenses of the Fund. The Board approved a policy whereby the Manager may seek repayment for such fee waivers and expense reimbursements. Under the policy, the Manager can be reimbursed by the Fund for any contractual or voluntary fee waivers or expense reimbursements if reimbursement to the Manager (a) occurs within three years from the date of the Manager's waiver/reimbursement and (b) does not cause the Fund's Total Annual Fund Operating Expenses to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or the time of recoupment.

The following tables show the total management fees paid to the Manager for management and administrative services and the investment advisory fees paid to each sub-advisor based on the Fund's average daily net assets for the Fund's three most recent fiscal years ended October 31. The following tables also show the management fees waived or recouped by the Manager and the sub-advisory fees waived by a sub-advisor, if applicable. The fees paid to the Manager were equal to 0.10% of the Fund's average daily net assets. The fees paid to the sub-advisors are addressed both as a dollar amount and percentage of the Fund's average daily net assets.

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| | | | |
|:---|:---|:---|:---|
| **Management Fees Paid to American Beacon Advisors, Inc. (Gross)**<br>| **2020** | **2021** | **2022** |
| American Beacon Diversified Fund | $504581 | $573257 | $535033 |

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| | | | |
|:---|:---|:---|:---|
| **Sub-advisor Fees (Gross)<sup>\*</sup>**<br>| **2020** | **2021** | **2022** |
| American Beacon Diversified Fund | $1051461 | $1293123 | $1217222 |
|  | 0.21% | 0.23% | 0.23% |

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\* Sub-advisor Fees includes fees paid to Templeton Investment Counsel, LLC ("Templeton") through February 14, 2020. On February 14, 2020, following shareholder approval, WCM was appointed a sub-advisor to the Fund and Templeton was terminated.

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| | | | |
|:---|:---|:---|:---|
| **Management Fees (Waived)/Recouped**<br>| **2020** | **2021** | **2022** |
| American Beacon Diversified Fund | $0 | $0 | $0 |

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| | | | |
|:---|:---|:---|:---|
| **Sub-advisor Fees (Waived)**<br>| **2020** | **2021** | **2022** |
| American Beacon Diversified Fund | $0 | $0 | $0 |

---

**Securities Lending Fees**

As compensation for services provided by the Manager in connection with securities lending activities conducted by the Fund, the lending Fund pays to the Manager, with respect to cash collateral posted by borrowers, a fee of 10% of the net monthly interest income (the gross interest income earned by the investment of cash collateral, less the amount paid to borrowers and related expenses) from such activities and, with respect to loan fees paid by borrowers when a borrower posts collateral other than cash, a fee up to 10% of such loan fees.

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

Fees received by the Manager from securities lending for the last three fiscal years ended October 31 were approximately as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **2020** | **2021** | **2022** |
| American Beacon Diversified Fund | $2932 | $6177 | $2849 |

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State Street serves as securities lending agent for the Fund and, in that role, administers the Fund's securities lending program pursuant to the terms of a securities lending authorization agreement entered into between the Fund and State Street ("Securities Lending Agreement").

As securities lending agent, State Street is responsible for the implementation and administration of the Fund's securities lending program. State Street's responsibilities include: (1) lending available securities to approved borrowers; (2) continually monitoring the creditworthiness of approved borrowers and potential borrowers; (3) determining whether a loan shall be made and negotiating the terms and conditions of the loan with the borrower, provided that such terms and conditions are consistent with the terms and conditions of the Securities Lending Agreement; (4) receiving and holding, on the Fund's behalf, or transferring to a fund account, upon instruction by the Fund, collateral from borrowers to secure obligations of borrowers with respect to any loan of available securities; (5) marking loaned securities and collateral to their market value each business day; (6) obtaining additional collateral, as needed, to maintain the value of the collateral relative to the market value of the loaned securities at the levels required by the Securities Lending Agreement; (7) returning the collateral to the borrower, at the termination of the loan, upon the return of the loaned securities; (8) investing cash collateral in permitted investments, including the American Beacon U.S. Government Money Market Select Fund; and (9) establishing and maintaining records related to the Fund's securities lending activities. Additionally, State Street has indemnified the Fund for borrower default as it relates to the securities lending program administered by State Street.

State Street is compensated for the above-described services from its securities lending revenue split, as provided in the Securities Lending Agreement. The table below shows the income the Fund earned and the fees and compensation it paid to service providers (including fees paid to State Street as securities lending agent and the Manager for administrative and oversight functions) in connection with its securities lending activities during its most recent fiscal year.

---

| | |
|:---|:---|
|  | **American** **Beacon** **Diversified** **Fund** |
| **Gross income earned by the fund from securities lending activities** | **$57950** |
| **Fees and/or compensation paid by the fund for securities lending activities and related services:** |  |
| &nbsp;&nbsp;&nbsp; *Fees paid to securities lending agent from a revenue split* | $2849 |
| &nbsp;&nbsp;&nbsp; *Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split* | $2015 |
| &nbsp;&nbsp;&nbsp; *Administrative fees not included in revenue split* | $0 |
| &nbsp;&nbsp;&nbsp; *Indemnification fee not included in revenue split* | $0 |
| &nbsp;&nbsp;&nbsp; *Rebate (paid to borrower)* | $15089 |
| &nbsp;&nbsp;&nbsp; *Other fees not included in revenue split (administrative and oversight functions provided by the Manager)* | $2849 |
| **Aggregate fees/compensation paid by the fund for securities lending activities** | **$22802** |
| **Net income from securities lending activities** | **$35148** |

---

The SEC has granted exemptive relief that permits the Fund to invest cash collateral received from securities lending transactions in shares of one or more private or registered investment companies managed by the Manager.

**OTHER SERVICE PROVIDERS**

State Street, located at One Lincoln Street, Boston, Massachusetts 02111, serves as custodian for the Fund. State Street also serves as the Fund's Foreign Custody Manager pursuant to rules adopted under the Investment Company Act, whereby it selects and monitors eligible foreign sub-custodians. The Manager also has entered into a sub-administration agreement with State Street. Under the sub-administration agreement, State Street provides the Fund with certain financial reporting and tax services.

Pursuant to an administrative services agreement among the Manager, the Trust, American Beacon Institutional Funds Trust and Parametric Portfolio Associates LLC ("Parametric"), located at 800 Fifth Avenue, Suite 2800, Seattle, Washington 98104, Parametric provides certain administrative services related to the equitization of cash balances for certain series of the American Beacon Funds Complex.

SS&C GIDS, Inc., located at 2000 Crown Colony Drive, Quincy, Massachusetts 02169 is the transfer agent and dividend paying agent for the Trust and provides these services to Fund shareholders.

The Fund's independent registered public accounting firm is PricewaterhouseCoopers LLP, which is located at 101 Seaport Blvd., Suite 500, Boston, MA 02210.

K&L Gates LLP, 1601 K Street, NW, Washington, D.C. 20006, serves as legal counsel to the Fund.

**PORTFOLIO MANAGERS**

The portfolio managers to the Fund (the "Portfolio Managers") have responsibility for the day-to-day management of accounts other than the Fund. Information regarding these other accounts has been provided by each sub-advisor and is set forth below. The number of accounts and assets is shown as of October 31, 2022.

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---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** |
| <br>**Name of Investment Advisor** **and Portfolio Manager** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** |
| **American Beacon Advisors, Inc.** | **American Beacon Advisors, Inc.** |  |  |  |  |  |
| Colin J. Hamer | 2 ($4.9 bil) | 1 ($0.6 bil) | 2 ($12.1 bil) |  |  |  |
| Kirk L. Brown | 3 ($4.7 bil) |  | 3 ($12.6 bil) |  |  |  |
| Paul B. Cavazos | 5 ($9.6 bil) | 1 ($0.6 bil) | 3 ($12.6 bil) |  |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** |
| <br>**Name of Investment Advisor** **and Portfolio Manager** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** |
| **Aristotle Capital Management LLC** | **Aristotle Capital Management LLC** |  |  |  |  |  |
| Howard Gleicher | 10 (6.7 bil) | 20 ($9.6 bil) | 1,364 ($19.7 bil) | 1 ($10.0 bil) |  | 3 ($570 mil) |
| Gregory D. Padilla | 8 ($6.2 bil) | 17 ($9.0 bil) | 1,359 ($18.7 bil) | 1 ($10.0 bil) |  | 3 ($570 mil) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** |
| <br>**Name of Investment Advisor** **and Portfolio Manager** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** |
| **Barrow, Hanley, Mewhinney & Strauss, LLC** | **Barrow, Hanley, Mewhinney & Strauss, LLC** |  |  |  |  |  |
| Mark Giambrone | 6 ($4.9 bil) | 1($248.8 mil) | 31 ($6.2 bil) |  |  |  |
| Mark C. Luchsinger<sup>1</sup> | 4 ($183.4 mil) | 2 ($349.2 mil) | 77 ($7.1 bil) |  |  |  |
| Justin Martin | 4 ($183.4 mil) | 2 ($349.2 mil) | 77 ($7.1 bil) |  |  |  |
| J. Scott McDonald | 4 ($183.4 mil) | 2 ($349.2 mil) | 80 ($7.2 bil) |  |  |  |
| Deborah A. Petruzzelli | 3 ($166.3 mil) | 2 ($349.2 mil) | 47 ($3.3 bil) |  |  |  |
| Matthew Routh | 4 ($183.4 mil) | 2 ($349.2 mil) | 77 ($7.1 bil) |  |  |  |

---

1 Effective April 30, 2023, Mr. Luchsinger will retire as a Portfolio Manager for the American Beacon Diversified Fund. Therefore, effective April 30, 2023, all references to Mr. Luchsinger are deleted.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** |
| <br>**Name of Investment Advisor** **and Portfolio Manager** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** |
| **Brandywine Global Investment Management,** **LLC** | **Brandywine Global Investment Management,** **LLC** |  |  |  |  |  |
| David F. Hoffman | 7 ($4.03 bil) | 36 ($9.34 bil) | 41 ($13.63 bil) |  | 1 ($0.34 bil) | 10 ($12.76 bil) |
| Jack P. McIntyre | 12 ($5.86 bil) | 52 ($14.70 bil) | 46 ($14.05 bil) |  | 2 ($0.53 bil) | 14 ($14.22 bil) |
| Anujeet Sareen | 12 ($5.86 bil) | 52 ($14.70 bil) | 46 ($14.05 bil) |  | 2 ($0.53 bil) | 14 ($14.22 bil) |
| Tracy Chen | 14 ($6.1 bil) | 52 ($14.74 bil) | 45 ($13.24 bil) |  | 2 ($0.53 bil) | 13 ($13.95 bil) |
| Brian Kloss | 14 ($6.1 bil) | 52 ($14.74 bil) | 45 ($13.24 bil) |  | 2 ($0.53 bil) | 13 ($13.95 bil) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** |
| <br>**Name of Investment Advisor** **and Portfolio Manager** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** |
| **Hotchkis and Wiley Capital Management, LLC** | **Hotchkis and Wiley Capital Management, LLC** |  |  |  |  |  |
| George Davis | 22 ($18.4 bil) | 11 ($2.2 bil) | 49 ($6.7 bil) | 2 ($11.9 bil) | 1 ($46.4 mil) | 3 ($674.4 mil) |
| Scott McBride | 22 ($18.4 bil) | 11 ($2.2 bil) | 49 ($6.7 bil) | 2 ($11.9 bil) | 1 ($46.4 mil) | 3 ($674.4 mil) |
| Patricia McKenna | 22 ($18.4 bil) | 11 ($2.2 bil) | 49 ($6.7 bil) | 2 ($11.9 bil) | 1 ($46.4 mil) | 3 ($674.4 mil) |
| Judd Peters | 22 ($18.4 bil) | 11 ($2.2 bil) | 49 ($6.7 bil) | 2 ($11.9 bil) | 1 ($46.4 mil) | 3 ($674.4 mil) |

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---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** |
| <br>**Name of Investment Advisor** **and Portfolio Manager** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** |
| **Lazard Asset Management LLC** | **Lazard Asset Management LLC** |  |  |  |  |  |
| Michael A. Bennett | 11 ($11.7 bil) | 15 ($4.9 bil) | 156 ($17.9 bil) | 1 ($4.6 bil) |  | 3 ($228.4 mil) |
| Giles Edwards | 6 ($6.2 bil) | 8 ($1.5 bil) | 119 ($11.0 bil) | 1 ($4.6 bil) |  | 3 ($228.4 mil) |
| Michael G. Fry | 6 ($6.2 bil) | 8 ($1.5 bil) | 119 ($11.0 bil) | 1 ($4.6 bil) |  | 3 ($228.4 mil) |
| Michael S. Powers | 9 ($6.4 bil) | 8 ($1.5 bil) | 118 ($11.0 bil) | 1 ($4.6 bil) |  | 3 ($228.4 mil) |
| Paul Selvey-Clinton | 6 (6.3 bil) | 15 ($2.1 bil) | 126 ($11.4 bil) | 1 ($4.6 bil) |  | 4 ($254.9 mil) |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Other Accounts Managed and Assets by** **Account Type** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** | **Number of Accounts and Assets for which Advisory Fee is** **Performance-Based** |
| <br>**Name of Investment Advisor** **and Portfolio Manager** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** | **Registered** **Investment** **Companies** | **Other Pooled** **Investment** **Vehicles** | **Other Accounts** |
| **WCM Investment Management, LLC** | **WCM Investment Management, LLC** |  |  |  |  |  |
| Sanjay Ayer | 27 ($23.6 bil) | 37 ($9.0 bil) | 490 ($31.1 bil) |  | 5 ($659.1 mil) | 8 ($1.1 bil) |
| Paul R. Black | 20 ($21.2 bil) | 29 ($8.2 bil) | 485 ($31.0 bil) |  | 4 ($604.4 mil) | 8 ($1.1 bil) |
| Peter J. Hunkel<sup>\*</sup> | 23 ($23.0 bil) | 32 ($8.5 bil) | 485 ($31.0 bil) |  | 4 ($604.4 mil) | 8 ($1.1 bil) |
| Michael B. Trigg | 24 ($23.0 bil) | 32 ($8.5 bil) | 485 ($31.0 bil) |  | 4 ($604.4 mil) | 8 ($1.1 bil) |
| Jon Tringale | 19 ($21.2 bil) | 28 ($8.0 bil) | 485 ($31.0 bil) |  | 3 ($437.5 mil) | 8 ($1.1 bil) |

---

\* Effective March 31, 2023, Mr. Hunkel will retire as a Portfolio Manager for the Fund. Therefore, effective March 31, 2023, all references to Mr. Hunkel in this SAI are deleted.

**Conflicts of Interest**

As noted in the table above, the Portfolio Managers manage accounts other than the Fund. This side-by-side management may present potential conflicts between a Portfolio Manager's management of the Fund's investments, on the one hand, and the investments of the other accounts, on the other hand. Set forth below is a description by the Manager and each sub-advisor of any foreseeable material conflicts of interest that may arise from the concurrent management of the Fund and other accounts. The information regarding potential conflicts of interest was provided by the Manager and the sub-advisors as of October 31, 2022.

**<u>The Manager</u>** The Manager's Portfolio Managers are responsible for managing the Fund and other accounts, including separate accounts and unregistered funds. The Manager typically assigns Funds and accounts with similar investment strategies to the same Portfolio Manager to mitigate the potentially conflicting investment strategies of accounts. Other than potential conflicts between investment strategies, the side-by-side management of both the Fund and other accounts may raise potential conflicts of interest due to the interest held by the Manager or one of its affiliates in an account and certain trading practices used by the Portfolio Managers (e.g., cross trades between the Fund and another account and allocation of aggregated trades). The Manager has developed policies and procedures reasonably designed to mitigate those conflicts. In particular, the Manager has adopted policies limiting the ability of Portfolio Managers to cross securities between the Fund and a separate account and policies designed to ensure the fair allocation of securities purchased on an aggregated basis.

***<u>Aristotle Capital Management LLC</u>*** Potential conflicts of interest could arise when there is side-by-side management of private funds, separately managed accounts and mutual funds. Additionally differing fee arrangements increase the risk that higher fee paying accounts may receive priority over other accounts during the allocation process. Aristotle Capital mitigates these risks by implementing procedures, such as establishing a trade rotation process, blocking trades, maintaining proper written records with respect to allocations, and allocating at average price. These procedures are designed and implemented to ensure that all clients are treated fairly and equally, and to prevent this conflict from influencing the allocation of investment opportunities among clients.

With regard to portfolio selections and the different positions that Aristotle's portfolio managers may take related to different strategies, a potential conflict could arise when different classes of a security are purchased for different portfolios in the same strategy or one strategy is long in a position and another is short in the same security. When different classes of a security are purchased across several portfolios, this is often due to the availability of the security and not due a preference for one class over another among client portfolios and often a portfolio could end up with both classes. Aristotle manages strategies that include a long/short component. In this case, the long/short component would be in line with hedge on the position. However, it is acknowledged, that a separate strategy could be long only in the same security which could pose a conflict.

Aristotle acknowledges its responsibility for identifying material conflicts of interest related to voting proxies. In order to ensure that Aristotle is aware of the facts necessary to identify conflicts, management of Aristotle Capital must disclose to the CCO any personal conflicts such as officer or director positions held by them, their spouses or close relatives, in any portfolio company. Conflicts based on business relationships with Aristotle or any affiliate of Aristotle will be considered only to the extent that Aristotle has actual knowledge of such relationships. If a conflict may exist which cannot be otherwise addressed by the Chief Investment Officer or his designee, Aristotle may choose one of several options including: (1) "echo" or "mirror" voting the proxies in the same proportion as the votes of other proxy holders that are not Aristotle clients; (2) if possible, erecting information barriers

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around the person or persons making the voting decision sufficient to insulate the decision from the conflict; or (3) if agreed upon in writing with the client, forwarding the proxies to affected clients and allowing them to vote their own proxies.

***<u>Barrow, Hanley, Mewhinney & Strauss, LLC ("Barrow Hanley")</u>*** Actual or potential conflicts of interest arise when a portfolio manager has management responsibilities for more than one account including mutual fund or CLO accounts. Advisers have an incentive to favor Clients in which they have increased pecuniary interests including investment interests, more lucrative or performance-based fee arrangements or where compensation is based on capital investment over other Clients, including in the allocation of investment opportunities among Clients. Barrow Hanley manages potential conflicts between Funds, CLOs or with other types of accounts through allocation policies and procedures, internal review processes, and oversight by the CCO, directors and independent third-parties. The Firm's investment management and trading policies are designed to address conflicts in situations where two or more funds, CLOs or accounts participate in investment decisions involving the same securities or issuer.

***<u>Brandywine Global Investment Management, LLC ("Brandywine Global")</u>*** Brandywine Global does not foresee any potentially material conflicts of interest as a result of concurrent management of the American Beacon Diversified Fund and other accounts. Brandywine Global follows the same buy and sell discipline for all positions across all portfolios, subject to client specific restrictions. Portfolios may differ in a strategy slightly due to differences in available cash, contributions and withdrawals.

<u>***<u>Hotchkis and Wiley Capital Management, LLC ("Hotchkis")</u>***</u> The Portfolio is managed by Hotchkis' investment team ("Investment Team"). The Investment Team also manages institutional accounts and other mutual funds in several different investment strategies. The portfolios within an investment strategy are managed using a target portfolio; however, each portfolio may have different restrictions, cash flows, tax and other relevant considerations which may preclude a portfolio from participating in certain transactions for that investment strategy. Consequently, the performance of portfolios may vary due to these different considerations. The Investment Team may place transactions for one investment strategy that are directly or indirectly contrary to investment decisions made on behalf of another investment strategy. Hotchkis also provides model portfolio investment recommendations to sponsors without trade execution or additional services. The timing of model delivery recommendations will vary depending on the contractual arrangement with the program Sponsor. As a result, depending on the program arrangement and circumstances surrounding a trade order, Hotchkis' discretionary clients may receive prices that are more favorable than those received by a client of a program Sponsor or vice versa. Hotchkis may be restricted from purchasing more than a limited percentage of the outstanding shares of a company or otherwise restricted from trading in a company's securities due to other regulatory limitations. If a company is a viable investment for more than one investment strategy, Hotchkis has adopted policies and procedures reasonably designed to ensure that all of its clients are treated fairly and equitably. Additionally, potential and actual conflicts of interest may also arise as a result of Hotchkis' other business activities and Hotchkis' possession of material non-public information about an issuer, which may have an adverse impact on one group of clients while benefiting another group. In certain situations, Hotchkis will purchase different classes of securities of the same company (e.g. senior debt, subordinated debt, and or equity) in different investment strategies which can give rise to conflicts where Hotchkis may advocate for the benefit of one class of security which may be adverse to another security that is held by clients of a different strategy. Hotchkis seeks to mitigate the impact of these conflicts on a case by case basis. Hotchkis utilizes soft dollars to obtain brokerage and research services, which may create a conflict of interest in allocating clients' brokerage business. Research services may be used in servicing any or all of Hotchkis' clients (including model portfolio delivery clients) across all of the firm's investment strategies, and may benefit certain client accounts more than others. Certain discretionary client accounts may also pay a less proportionate amount of commissions for research services. If a research product provides both a research and a non-research function, Hotchkis will make a reasonable allocation of the use and pay for the non-research portion with hard dollars. Hotchkis will make decisions involving soft dollars in a manner that satisfies the requirements of Section 28(e) of the Securities Exchange Act of 1934. Different types of accounts and investment strategies may have different fee structures. Additionally, certain accounts pay Hotchkis performance-based fees, which may vary depending on how well the account performs compared to a benchmark. Because such fee arrangements have the potential to create an incentive for Hotchkis to favor such accounts in making investment decisions and allocations, Hotchkis has adopted policies and procedures reasonably designed to ensure that all of its clients are treated fairly and equitably, including in respect of allocation decisions, such as initial public offerings. Since accounts are managed to a target portfolio by the Investment Team, adequate time and resources are consistently applied to all accounts in the same investment strategy. Investment personnel of the firm or its affiliates may be permitted to be commercially or professionally involved with an issuer of securities. Any potential conflicts of interest from such involvement would be monitored for compliance with the firm's Code of Ethics.

***<u>Lazard Asset Management LLC ("Lazard")</u>*** Although the potential for conflicts of interest exist when an investment adviser and portfolio managers manage other accounts that invest in securities in which the American Beacon Diversified Fund may invest or that may pursue a strategy similar to the Fund's investment strategies implemented by Lazard (collectively, "Similar Accounts"), Lazard has procedures in place that are designed to ensure that all accounts are treated fairly and that the Fund is not disadvantaged, including procedures regarding trade allocations and "conflicting trades" (e.g., long and short positions in the same or similar securities). In addition, the Fund is subject to different regulations than certain of the Similar Accounts, and, consequently, may not be permitted to engage in all the investment techniques or transactions, or to engage in such techniques or transactions to the same degree, as the Similar Accounts.

Potential conflicts of interest may arise because of Lazard's management of the Fund and Similar Accounts, including the following:

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| | |
|:---|:---|
| **1** | Similar Accounts may have investment objectives, strategies and risks that differ from those of the Fund. In addition, the Fund is subject to different regulations than certain of the Similar Accounts and, consequently, may not be permitted to invest in the same securities, exercise rights to exchange or convert securities or engage in all the investment techniques or transactions, or to invest, exercise or engage to the same degree, as the Similar Accounts. For these or other reasons, the portfolio managers may purchase different securities for the Fund and the corresponding Similar Accounts, and the performance of securities purchased for the Fund may vary from the performance of securities purchased for Similar Accounts, perhaps materially. |

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| | |
|:---|:---|
| **2** | Conflicts of interest may arise with both the aggregation and allocation of securities transactions and allocation of limited investment opportunities. Lazard may be perceived as causing accounts it manages to participate in an offering to increase Lazard's overall allocation of securities in that offering, or to increase Lazard's ability to participate in future offerings by the same underwriter or issuer. Allocations of bunched trades, particularly trade orders that were only partially filled due to limited availability, and allocation of investment opportunities generally, could raise a potential |

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conflict of interest, as Lazard may have an incentive to allocate securities that are expected to increase in value to preferred accounts. Initial public offerings, in particular, are frequently of very limited availability. A potential conflict of interest may be perceived to arise if transactions in one account closely follow related transactions in a different account, such as when a purchase increases the value of securities previously purchased by the other account, or when a sale in one account lowers the sale price received in a sale by a second account.

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| | |
|:---|:---|
| **3** | Portfolio managers may be perceived to have a conflict of interest because of the large number of Similar Accounts, in addition to the Fund, that they are managing on behalf of Lazard. Although Lazard does not track each individual portfolio manager's time dedicated to each account, Lazard periodically reviews each portfolio manager's overall responsibilities to ensure that he or she is able to allocate the necessary time and resources to effectively manage the Fund. As illustrated in the table above, most of the portfolio managers manage a significant number of Similar Accounts in addition to the Fund. |

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| | |
|:---|:---|
| **4** | Generally, Lazard and/or its portfolio managers have investments in Similar Accounts. This could be viewed as creating a potential conflict of interest, since certain of the portfolio managers do not invest in the Fund. |

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| | |
|:---|:---|
| **5** | The table above notes the portfolio managers who manage Similar Accounts with respect to which the advisory fee is based on the performance of the account, which could give the portfolio managers and Lazard an incentive to favor such Similar Accounts over the Fund. |

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| | |
|:---|:---|
| **6** | Portfolio managers may place transactions on behalf of Similar Accounts that are directly or indirectly contrary to investment decisions made for the Fund, which could have the potential to adversely impact the Fund, depending on market conditions. In addition, if the Fund's investment in an issuer is at a different level of the issuer's capital structure than an investment in the issuer by Similar Accounts, in the event of credit deterioration of the issuer, there may be a conflict of interest between the Fund's and such Similar Accounts' investments in the issuer. If Lazard sells securities short, including on behalf of a Similar Account, it may be seen as harmful to the performance of the Fund to the extent it invests "long" in the same or similar securities whose market values fall as a result of short-selling activities. |

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|:---|:---|
| **7** | Investment decisions are made independently from those of the Similar Accounts. If, however, such Similar Accounts desire to invest in, or dispose of, the same securities as the Fund, available investments or opportunities for sales will be allocated equitably to each. In some cases, this procedure may adversely affect the size of the position obtained for or disposed of by the Fund or the price paid or received by the Fund. |

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| **8** | Under Lazard's trade allocation procedures applicable to domestic and foreign initial and secondary public offerings and Rule 144A transactions (collectively herein a "Limited Offering"), Lazard will generally allocate Limited Offering shares among client accounts, including the Fund, pro rata based upon the aggregate asset size (excluding leverage) of the account. Lazard may also allocate Limited Offering shares on a random basis, as selected electronically, or other basis. It is often difficult for the Adviser to obtain a sufficient number of Limited Offering shares to provide a full allocation to each account. Lazard's allocation procedures are designed to allocate Limited Offering securities in a fair and equitable manner. |

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***<u>WCM Investment Management, LLC ("WCM")</u>*** The management of multiple funds and accounts may give rise to potential conflicts of interest if the funds and other accounts have different objectives, benchmarks, time horizons, and fees as the portfolio manager must allocate his time and investment ideas across multiple funds and accounts. The firm seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most other accounts managed by a portfolio manager are managed using the same investment strategies that are used in connection with the management of the Fund. Accordingly, portfolio holdings, position sizes, and industry and sector exposures tend to be similar across similar portfolios, which may minimize the potential for conflicts of interest. The separate management of the trade execution and valuation functions from the portfolio management process also helps to reduce potential conflicts of interest. However, securities selected for funds or accounts other than the Fund may outperform the securities selected for the Fund. Moreover, if a portfolio manager identifies a limited investment opportunity that may be suitable for more than one fund or other account, the Fund may not be able to take full advantage of that opportunity due to an allocation of that opportunity across all eligible funds and other accounts. The firm seeks to manage such potential conflicts by using procedures intended to provide a fair allocation of buy and sell opportunities among funds and other accounts.

The management of personal accounts by a portfolio manager may give rise to potential conflicts of interest. While WCM has adopted a code of ethics which we believe contains provisions reasonably necessary to prevent a wide range of prohibited activities by portfolio managers and others with respect to their personal trading activities, there can be no assurance that the code of ethics addresses all individual conduct that could result in conflicts of interest.

In addition, WCM has adopted certain compliance procedures that are designed to address these, and other, types of conflicts. However, there is no guarantee that such procedures will detect each and every situation where a conflict arises.

**Compensation** 

The following is a description provided by the Manager and each investment sub-advisor regarding the structure of and criteria for determining the compensation of each Portfolio Manager as of October 31, 2022.

**<u>The Manager</u>** Compensation of the Manager's Portfolio Managers is comprised of base salary and annual cash bonus. Each Portfolio Manager's base annual salary is fixed. The Manager determines base salary based upon comparison to industry salary data. In addition, all Portfolio Managers participate in the Manager's annual cash bonus plan. The amount of the total bonus pool is based upon the profitability of the Manager. Each Portfolio Manager has a target bonus award expressed as a percentage of base salary, which is determined by the Portfolio Manager's level of responsibility. Additionally, the Portfolio Managers may participate in the Manager's equity incentive plan.

***<u>Aristotle</u>*** All investment professionals are compensated by competitive base salaries and are eligible to receive an annual bonus that reflects an individual's team contribution to company objectives. (Market indices are not used in determining an employee's annual bonus.) Each portfolio manager at Aristotle is an equity partner of the firm and receives a portion of the overall profits of Aristotle as part of his ownership interest. Aristotle's culture is driven by a collegial and collaborative atmosphere that inspires teamwork and does not foster a "zero sum" environment where individual analysts are perceived to be in competition with one another.

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***<u>Barrow Hanley</u>*** Compensation for our investment professionals is closely tied to their overall contribution to the success of our clients' investment results, as well as the success of Barrow Hanley. In addition to base salary, all portfolio managers are eligible to participate in a bonus pool. Portfolio managers are evaluated on the value each adds to the overall investment process and performance.

The amount of bonus compensation is based on a very extensive quantitative and qualitative factor/matrix and may be substantially higher than an investment professional's base compensation. The compensation weightings between the two measures are 50% quantitative and 50% qualitative. The quantitative measures include their trailing one-year and three-year investment performance. For the portfolio managers, investment performance is measured relative to their respective strategies' benchmark. Additionally, if a portfolio manager produces strong and consistent relative performance which leads to retention or growth in their respective strategies, they will also be incentivized based on their strategy's contribution to the overall profitability of the firm as well as their strategy's contribution to the bonus pool.

On the qualitative measurement matrix, contributions in other areas are also considered, such as meetings with clients and consultants, leadership and mentoring, and many other factors. All employees, including portfolio managers, receive an annual profit-sharing contribution into their 401(k) account of typically 15% (up to IRS limits) of their annual salary.

The final component of compensation of key employees, including portfolio managers, is their interest in our equity plan. Each quarter, equity owners receive a share of the firm's profits in the form of a dividend, which is related to the performance of the entire firm. We are a meritocracy-based firm where the largest contributors to the success of our firm are compensated appropriately.

***<u>Brandywine Global</u>*** All portfolio managers, research analysts and traders earn a base salary and bonus tied to investment performance. The performance bonus is awarded based on performance compared to a proprietary performance universe created for each team on a one-quarter, one-year, three-year and five-year basis. The performance calculation is weighted to place more emphasis on longer-term outperformance, and less emphasis on the short-term. Investment professionals also receive a second quarterly bonus based on the profitability of their product group. Each investment team at Brandywine Global manages its own P&L and retains the bulk of its profits at the end of each quarter. The portion that is not retained is shared with the other investment teams in an effort to smooth income and to promote cross-team fertilization and cooperation. Brandywine Global has found that this form of compensation aligns the interests of investment professionals and clients and leads to accountability and low-turnover among Brandywine Global's staff. In essence, the portfolio management teams own all of the residual profits of the Firm, which Brandywine Global believes leads to responsibility, accountability, and low turnover of people.

The percentage of compensation derived from each of the above components changes over time. In general, the larger the percentage of total compensation that will result from incentive pay will be paid to the more senior and successful group.

Brandywine Global believes that its compensation structure allows its investment team members to focus on generating premium returns and building lasting client relationships in which its interests are properly aligned with its clients' interests.

***<u>Hotchkis</u>*** The Investment Team, including portfolio managers, is compensated in various forms, which may include one or more of the following: (i) a base salary, (ii) bonus, (iii) profit sharing and (iv) equity ownership. Compensation is used to reward, attract and retain high quality investment professionals. The Investment Team is evaluated and accountable at three levels. The first level is individual contribution to the research and decision-making process, including the quality and quantity of work achieved. The second level is teamwork, generally evaluated through contribution within sector teams. The third level pertains to overall portfolio and firm performance. Fixed salaries and discretionary bonuses for investment professionals are determined by the Chief Executive Officer of Hotchkis using tools which may include annual evaluations, compensation surveys, feedback from other employees and advice from members of the firm's Executive and Compensation Committees. The amount of the bonus is determined by the total amount of the firm's bonus pool available for the year, which is generally a function of revenues. No investment professional receives a bonus that is a pre-determined percentage of revenues or net income. Compensation is thus subjective rather than formulaic. The portfolio managers of the Funds own equity in Hotchkis. Hotchkis believes that the employee ownership structure of the firm will be a significant factor in ensuring a motivated and stable employee base going forward. Hotchkis believes that the combination of competitive compensation levels and equity ownership provides Hotchkis with a demonstrable advantage in the retention and motivation of employees. Portfolio managers who own equity in Hotchkis receive their pro rata share of Hotchkis' profits. Investment professionals may also receive contributions under Hotchkis' profit sharing/401(k) plan.

***<u>Lazard</u>*** Lazard's portfolio managers are generally responsible for managing multiple types of accounts that may, or may not, invest in securities in which the Fund may invest or pursue a strategy similar to the Fund's strategies. Portfolio managers responsible for managing the Fund may also manage sub-advised registered investment companies, collective investment trusts, unregistered funds and/or other pooled investment vehicles, separate accounts, separately managed account programs (often referred to as "wrap accounts") and model portfolios.

Lazard compensates portfolio managers by a competitive salary and bonus structure, which is determined both quantitatively and qualitatively. Salary and bonus are paid in cash, stock and restricted interests in funds managed by Lazard or its affiliates. Portfolio managers are compensated on the performance of the aggregate group of portfolios managed by the teams of which they are a member rather than for a specific fund or account. Various factors are considered in the determination of a portfolio manager's compensation. All of the portfolios managed by a portfolio manager are comprehensively evaluated to determine his or her positive and consistent performance contribution over time. Further factors include the amount of assets in the portfolios as well as qualitative aspects that reinforce Lazard's investment philosophy.

Total compensation is generally not fixed, but rather is based on the following factors: (i) leadership, teamwork and commitment, (ii) maintenance of current knowledge and opinions on companies owned in the portfolio; (iii) generation and development of new investment ideas, including the quality of security analysis and identification of appreciation catalysts; (iv) ability and willingness to develop and share ideas on a team basis; and (v) the performance results of the portfolios managed by the investment teams of which the portfolio manager is a member.

Variable bonus is based on the portfolio manager's quantitative performance as measured by his or her ability to make investment decisions that contribute to the pre-tax absolute and relative returns of the accounts managed by the teams of which the portfolio manager is a member, by

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comparison of each account to a predetermined benchmark, generally as set forth in the Prospectus or other governing document, over the current fiscal year and the longer-term performance of such account, as well as performance of the account relative to peers. The portfolio manager's bonus also can be influenced by subjective measurement of the manager's ability to help others make investment decisions. A portion of a portfolio manager's variable bonus is awarded under a deferred compensation arrangement pursuant to which the portfolio manager may allocate certain amounts awarded among certain Lazard Portfolios, in shares that vest in two to three years. Certain portfolio managers' bonus compensation may be tied to a fixed percentage of revenue or assets generated by the accounts managed by such portfolio management teams.

***<u>WCM</u>*** Compensation for WCM portfolio management personnel is determined by research team leaders in conjunction with WCM's Leadership Team, and consists of 1) a salary with 2) a possible bonus, 3) a possible revenue-share, and 4) a possible equity component.

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| **1** | Salary levels are based on the individual's degree of industry tenure, experience, and responsibilities at the firm. |

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| **2** | The bonus component is discretionary, and is based on qualitative employee performance measures, such as our "return on time" evaluation, contribution to the portfolio team, management of their portfolios, and other responsibilities (e.g., personnel management) at the firm. Furthermore, the overall performance of WCM (e.g., total assets under management, company profitability) will also impact this compensation component. |

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| **3** | Portfolio managers may share in the revenue generated by the investment strategy for which they are responsible. |

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| **4** | Finally, portfolio managers may also receive compensation in the form of offers of equity ownership and the consequent distributions therefrom. |

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Portfolio managers are also eligible to participate in the company's "401(k)" Employee Savings Plan, which includes an annual company contribution based on the profitability of the firm.

**<u>Ownership of the Fund</u>**

A Portfolio Manager's beneficial ownership of the Fund is defined as the Portfolio Manager having the opportunity to share in any profit from transactions in the Fund, either directly or indirectly, as the result of any contract, understanding, arrangement, relationship or otherwise. Therefore, ownership of Fund shares by members of the Portfolio Manager's immediate family or by a trust of which the Portfolio Manager is a trustee could be considered ownership by the Portfolio Manager. Shares of the Fund are offered for investment only to qualified plans, investment companies, insurance company separate accounts, common or commingled trust funds, or similar organizations and entities that are "accredited investors" within the meaning of Regulation D under the Securities Act of 1933, as amended ("1933 Act"), and that are also "qualified purchasers" as defined in Section 2(a)(51) of the Investment Company Act, as of October 31, 2022. No portfolio manager beneficially owns shares of the Fund.

**PORTFOLIO SECURITIES TRANSACTIONS**

In selecting brokers or dealers to execute particular transactions, the Manager and the sub-advisors are authorized to consider "brokerage and research services" (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934, as amended), provision of statistical quotations (including the quotations necessary to determine the Fund's NAV), and other information provided to the Fund, to the Manager and/or to the sub-advisors (or their affiliates), provided, however, that the Manager or the sub-advisors must always seek best execution. Research and brokerage services may include information on portfolio companies, economic analyses, and other investment research services. The Trust does not allow the Manager or sub-advisors to enter arrangements to direct transactions to broker-dealers as compensation for the promotion or sale of Trust shares by those broker-dealers. The Manager and the sub-advisors are also authorized to cause the Fund to pay a commission (as defined in SEC interpretations) to a broker or dealer who provides such brokerage and research services for executing a portfolio transaction which is in excess of the amount of the commission another broker or dealer would have charged for effecting that transaction. The Manager or the sub-advisors, as appropriate, must determine in good faith, however, that such commission was reasonable in relation to the value of the brokerage and research services provided, viewed in terms of that particular transaction or in terms of all the accounts over which the Manager or the sub-advisors exercise investment discretion. The fees of the sub-advisors are not reduced by reason of receipt of such brokerage and research services. However, with disclosure to and pursuant to written guidelines approved by the Board, as applicable, the Manager, or the sub-advisors (or a broker-dealer affiliated with them) may execute portfolio transactions and receive usual and customary brokerage commissions (within the meaning of Rule 17e-1 under the Investment Company Act) for doing so. Brokerage and research services obtained with Fund commissions might be used by the Manager and/or the sub-advisors, as applicable, to benefit their other accounts under management.

The Manager and each sub-advisor will place its own orders to execute securities transactions that are designed to implement the Fund's investment objective and policies. In placing such orders, each sub-advisor will seek best execution. The full range and quality of services offered by the executing broker or dealer will be considered when making these determinations. Pursuant to written guidelines approved by the Board, as appropriate, a sub-advisor of the Fund, or its affiliated broker-dealer, may execute portfolio transactions and receive usual and customary brokerage commissions (within the meaning of Rule 17e-1 of the Investment Company Act) for doing so. The Fund's turnover rate, or the frequency of portfolio transactions, will vary from year to year depending on market conditions and the Fund's cash flows. High portfolio turnover increases the Fund's transaction costs, including brokerage commissions, and may result in a greater amount of recognized capital gains.

The Investment Advisory Agreements provide, in substance, that in executing portfolio transactions and selecting brokers or dealers, the principal objective of each sub-advisor is to seek best execution. In assessing available execution venues, each sub-advisor shall consider all factors it deems relevant, including the breadth of the market in the security, the price of the security, the value of any eligible research, the financial condition and execution capability of the broker or dealer and the reasonableness of the commission, if any, for the specific transaction and on a continuing basis. Transactions with respect to the securities of small and emerging growth companies in which the Fund may invest may involve specialized services on the part of the broker or dealer and thereby may entail higher commissions or spreads than would be the case with transactions involving more widely traded securities.

The Fund may establish brokerage commission recapture arrangements with certain brokers or dealers. If a sub-advisor chooses to execute a transaction through a participating broker, the broker rebates a portion of the commission back to the Fund. Any collateral benefit received through

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participation in the commission recapture program is directed exclusively to the Fund. Neither the Manager nor any of the sub-advisors receive any benefits from the commission recapture program. The sub-advisors' participation in the brokerage commission recapture program is optional. Each sub-advisor retains full discretion in selecting brokerage firms for securities transactions and is instructed to use the commission recapture program for a transaction only if it is consistent with the sub-advisor's obligation to seek the best execution available.

**Affiliated Broker Commissions**

For the three most recent fiscal years ended October 31, no brokerage commissions were paid to affiliated brokers by any of the Funds.

**Brokerage Commissions**

For the three most recent fiscal years ended October 31, the following brokerage commissions were paid by the Fund. Fluctuations in brokerage commissions from year to year were primarily due to increases or decreases in Fund assets resulting in increased trading. Shareholders of these Fund bear only their pro-rata portion of such expenses.

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| **American Beacon Fund** | **2020** | **2021** | **2022** |
| American Beacon Diversified Fund | $216761 | $168190 | $125556 |

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**Commission Recapture**

For the fiscal year ended October 31, 2022, the Fund received the amounts shown as a result of participation in the commission recapture program:

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| **American Beacon Fund** | **Amount Received** |
| American Beacon Diversified Fund | $0 |

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**Soft Dollars**

The table below reflects the amount of transactions the Fund directed to brokers in part because of research services provided and the amount paid in commissions on such transactions for the fiscal year ended October 31, 2022.

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| **American Beacon Fund** | **Amounts Directed** | **Amounts Paid in Commissions** |
| American Beacon Diversified Fund | $25810577 | $11619 |

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**Securities Issued by Top 10 Brokers**

The following table lists the Fund's holdings in securities issued by a broker-dealer (or by its parent) that were one of the top ten brokers or dealers, for the fiscal year ended October 31, 2022, through which the Fund executed transactions or sold shares.

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| **Regular Broker-Dealers** | **Aggregate Value of Securities**<br>**(000's)** |
| Barclays PLC | $971 |
| Citigroup Inc | $3632 |
| Wells Fargo & Co | $3360 |
| American International Group | $32061 |
| BNY Mellon | $1543 |
| Goldman Sachs Group | $1435 |

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**REDEMPTIONS IN KIND**

Although the Fund intends to redeem shares in cash, it reserves the right to pay the redemption price in whole or in part by a distribution of securities or other assets. Redemption in kind is not as liquid as a cash redemption. In addition, to the extent the Fund redeems its shares in this manner, the shareholder assumes the risk of a subsequent change in the market value of those securities, the cost of liquidating the securities and the possibility of a lack of a liquid market for those securities.

**PURCHASES IN KIND**

The Fund, in its sole discretion, may allow purchases in kind wherein securities held by the purchaser having a value, determined in accordance with the Fund's policies for valuation of portfolio securities, may be exchanged for fund shares issued in an amount equal to the market value of the securities being exchanged. The Fund will accept for in-kind purchases only securities or other instruments that are appropriate under its investment objective and policies and are not subject to restrictions as to transfer. The securities must, generally, be liquid and have a readily ascertainable market value. All dividends, other distributions, and subscription or other rights associated with the securities become the property of the Fund, along with the securities and must be delivered to the Fund if received by the investor. All taxes as a result of the purchase in kind would be incurred by the investor. Shares purchased in exchange for securities in kind generally cannot be redeemed until the transfer of securities has settled.

**TAX INFORMATION**

The tax information in the PPM and in this section relates solely to federal income tax law and assumes that the Fund will qualify as a "regulated investment company" under the Internal Revenue Code ("RIC") (as discussed below). The tax information in this section is only a summary of certain key federal tax considerations affecting the Fund and its shareholders and is in addition to the tax information in the PPM. No attempt has been made

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to present a complete explanation of the federal income tax treatment of the Fund or the tax implications to its shareholders. The discussions here and in the PPM are not intended as substitutes for careful tax planning. The tax information is based on the Internal Revenue Code and applicable regulations in effect, and administrative pronouncements and judicial decisions publicly available, on the date of this SAI. Future legislative, regulatory or administrative changes or court decisions may significantly change the tax rules applicable to the Fund and its shareholders. Any of these changes or court decisions may have a retroactive effect.

**<u>Taxation of the Fund</u>**

The Fund intends to qualify each taxable year for treatment as a RIC under Subchapter M of Chapter 1 of Subtitle A of the Internal Revenue Code. To so qualify, the Fund (which is treated as a separate corporation for these purposes) must, among other requirements:

■ Derive at least 90% of its gross income each taxable year from (1) dividends, interest, payments with respect to securities loans and gains from the sale or other disposition of securities or foreign currencies, or other income, including gains from options, futures or forward contracts, derived with respect to its business of investing in securities or those currencies ("Qualifying Income") and (2) net income derived from an interest in a "qualified publicly traded partnership" ("QPTP") ("Gross Income Requirement"). A QPTP is a "publicly traded partnership" (that is, a partnership the interests in which are "traded on an established securities market" or "readily tradable on a secondary market (or the substantial equivalent thereof)" (a "PTP")) that meets certain qualifying income requirements other than a partnership at least 90% of the gross income of which is Qualifying Income;

■ Diversify its investments so that, at the close of each quarter of its taxable year, (1) at least 50% of the value of its total assets is represented by cash and cash items, Government securities, securities of other RICs, and other securities, with those other securities limited, in respect of any one issuer, to an amount that does not exceed 5% of the value of the Fund's total assets and that does not represent more than 10% of the issuer's outstanding voting securities (equity securities of QPTPs being considered voting securities for those purposes), and (2) not more than 25% of the value of its total assets is invested in (a) the securities (other than Government securities or securities of other RICs) of any one issuer, (b) the securities (other than securities of other RICs) of two or more issuers the Fund controls (by owning 20% or more of their voting power)  that are determined to be engaged in the same, similar or related trades or businesses, or (c) the securities of one or more QPTPs  ("Diversification Requirements"); and

■ Distribute annually to its shareholders at least the sum of 90% of its investment company taxable income (generally, net investment income, the excess (if any) of net short-term capital gain over net long-term capital loss, and net gains and losses (if any) from certain foreign currency transactions, all determined without regard to any deduction for dividends paid) and 90% of its net exempt interest income ("Distribution Requirement").

By qualifying for treatment as a RIC, the Fund (but not its shareholders) will be relieved of federal income tax on the part of its investment company taxable income and net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) that it distributes to its shareholders. If for any taxable year the Fund does not qualify for that treatment — either (1) by failing to satisfy the Distribution Requirement, even if it satisfies the Gross Income and Diversification Requirements ("Other Requirements"), or (2) by failing any of the Other Requirements and is unable to, or determines not to, avail itself of Internal Revenue Code provisions that enable a RIC to cure a failure to satisfy any of the Other Requirements as long as the failure "is due to reasonable cause and not due to willful neglect" and the RIC pays a deductible tax calculated in accordance with those provisions and meets certain other requirements — then for federal tax purposes, all of its taxable income (including its net capital gain) would be subject to tax at the regular corporate rate without any deduction for dividends paid to its shareholders and the dividends it pays would be taxable to its shareholders as ordinary income (or possibly, (a) for individual and certain other non-corporate shareholders (each, an "individual"), as "qualified dividend income" (as described in the PPM) ("QDI"), and/or (b) in the case of corporate shareholders that meet certain holding period and other requirements regarding their Fund shares, as eligible for the dividends-received deduction ("DRD")) to the extent of the Fund's current and accumulated earnings and profits. Failure to qualify for RIC treatment would therefore have a negative impact on the Fund's income and performance. Furthermore, the Fund could be required to recognize unrealized gains, pay substantial taxes and interest, and make substantial distributions before requalifying for RIC treatment. It is possible that the Fund will not qualify as a RIC in any given taxable year.

The Fund will be subject to a nondeductible 4% federal excise tax ("Excise Tax") to the extent it fails to distribute by the end of any calendar year substantially all of its ordinary income for that year and substantially all of its capital gain net income for the one-year period ending on October 31 of that year, plus certain other amounts. The Fund intends to make sufficient distributions by the end of each calendar year to avoid liability for the Excise Tax.

**<u>Taxation of Certain Investments and Strategies</u>**

Hedging strategies, such as entering into forward contracts and selling (writing) and purchasing options and futures contracts, involve complex rules that will determine for federal income tax purposes the amount, character and timing of recognition of gains and losses the Fund may realize in connection therewith. In general, the Fund's (1) gains from the disposition of foreign currencies and (2) gains from such contracts will be treated as Qualifying Income under the Gross Income Requirement.

Dividends and interest the Fund receives, and gains it realizes, on foreign securities may be subject to income, withholding or other taxes imposed by foreign countries and U.S. possessions (collectively, "foreign taxes") that would reduce the yield and/or total return on its securities. Tax treaties between certain countries and the United States may reduce or eliminate foreign taxes, however, and many foreign countries do not impose taxes on capital gains realized on investments by foreign investors. It is impossible to determine the effective rate of the Fund's foreign tax in advance, since the amount of its assets to be invested in various countries is not known.

The Fund may invest in the stock of "passive foreign investment companies" ("PFICs"). A PFIC is any foreign corporation (with certain exceptions) that, in general, meets either of the following tests for a taxable year: (1) at least 75% of its gross income is passive; or (2) an average of at least 50% of the value (or adjusted tax basis, if elected) of its assets produce, or are held for the production of, passive income. Under certain circumstances, the Fund will be subject to federal income tax on a portion of any "excess distribution" it receives on the PFIC stock and of any gain on its disposition of that stock (collectively, "PFIC income"), plus interest thereon, even if the Fund distributes the PFIC income as a dividend to its shareholders. The balance of

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the PFIC income will be included in the Fund's investment company taxable income and, accordingly, will not be taxable to it to the extent it distributes that income to its shareholders. Fund distributions thereof will not be eligible to be treated as QDI or for the DRD.

If the Fund invests in a PFIC and elects to treat the PFIC as a "qualified electing fund" ("QEF"), then in lieu of incurring the foregoing tax and interest obligation, the Fund would be required to include in income each taxable year its pro rata share of the QEF's annual ordinary earnings and net capital gain — which the Fund likely would have to distribute to satisfy the Distribution Requirement and avoid imposition of the Excise Tax — even if the QEF did not distribute those earnings and gain to the Fund. In most instances, however, it will be very difficult, if not impossible, to make this election because of certain requirements thereof.

Alternatively, the Fund may elect to "mark to market" any stock in a PFIC it owns at the end of its taxable year, in which event it likely would be required to distribute to its shareholders any resulting gains to satisfy the Distribution Requirement and avoid imposition of the Excise Tax. "Marking-to-market," in this context, means including in gross income each taxable year (and treating as ordinary income) the excess, if any, of the fair market value of the stock over the Fund's adjusted basis therein (including any net mark-to-market gain or loss for each prior taxable year for which an election was in effect) as of the end of that year. Pursuant to the election, the Fund also would be allowed to deduct (as an ordinary, not a capital, loss) the excess, if any, of its adjusted basis in PFIC stock over the fair market value thereof as of the taxable year-end, but only to the extent of any net mark-to-market gains with respect to that stock the Fund included in income for prior taxable years under the election. The Fund's adjusted basis in each PFIC's stock subject to the election would be adjusted to reflect the amounts of income included and deductions taken thereunder.

Investors should be aware that determining whether a foreign corporation is a PFIC is a fact-intensive determination that is based on various facts and circumstances and thus is subject to change, and the principles and methodology used therein are subject to interpretation. As a result, the Fund may not be able, at the time it acquires a foreign corporation's stock, to ascertain whether the corporation is a PFIC, and a foreign corporation may become a PFIC after the Fund acquires stock therein. While the Fund generally will seek to minimize its investment in PFIC stock, and to make appropriate elections when they are available, to lessen the adverse tax consequences detailed above, there are no guarantees that it will be able to do so, and the Fund reserves the right to make those investments as a matter of its investment policy.

Some futures contracts, foreign currency contracts, and "non-equity" options (i.e., certain listed options, such as those on a "broad-based" securities index) - except any "securities futures contract" that is not a "dealer securities futures contract" (both as defined in the Internal Revenue Code) and any interest rate swap, currency swap, basis swap, interest rate cap, interest rate floor, commodity swap, equity swap, equity index swap, credit default swap, or similar agreement - in which the Fund invests may be subject to Internal Revenue Code section 1256 (collectively, "Section 1256 contracts"). Any Section 1256 contract the Fund holds at the end of its taxable year must be "marked-to-market" (that is, treated as having been sold at that time for its fair market value) for federal income tax purposes, with the result that unrealized gains or losses will be treated as though they were realized. Sixty percent of any net gain or loss realized on these deemed sales, and 60% of any net realized gain or loss from any actual sales of Section 1256 contracts, will be treated as long-term capital gain or loss, and the balance will be treated as short-term capital gain or loss. Section 1256 contracts also may be marked-to-market for purposes of the Excise Tax. These rules may operate to increase the amount that the Fund must distribute to satisfy the Distribution Requirement (i.e., with respect to the portion treated as short-term capital gain), which will be taxable to its shareholders as ordinary income when distributed to them, and to increase the net capital gain the Fund recognizes, without in either case increasing the cash available to it.

Under Internal Revenue Code section 988, a gain or loss (1) from the disposition of foreign currencies, (2) except in certain circumstances, from options, futures, and forward contracts on foreign currencies (and on financial instruments involving foreign currencies) and from notional principal contracts (e.g., swaps, caps, floors, and collars) involving payments denominated in foreign currencies, (3) on the disposition of each foreign-currency-denominated debt security that is attributable to fluctuations in the value of the foreign currency between the dates of acquisition and disposition of the security, and (4) that is attributable to exchange rate fluctuations between the time the Fund accrues interest, dividends, or other receivables or expenses or other liabilities denominated in a foreign currency and the time it actually collects the receivables or pays the liabilities generally will be treated as ordinary income or loss. These gains or losses will increase or decrease the amount of the Fund's investment company taxable income to be distributed to its shareholders as ordinary income, rather than affecting the amount of its net capital gain. If the Fund's section 988 losses exceed its other investment company taxable income for a taxable year, the Fund would not be able to distribute any dividends, and any distributions made during that year (including those made before the losses were realized) would be characterized as a non-taxable "return of capital" to shareholders, rather than as a dividend, thereby reducing each shareholder's basis in his or her Fund shares and treating any part of such distribution exceeding that basis as gain from the disposition of those shares.

Offsetting positions the Fund enters into or holds in any actively traded option, futures or forward contract may constitute a "straddle" for federal income tax purposes. Straddles are subject to certain rules that may affect the amount, character and timing of recognition of the Fund's gains and losses with respect to positions of the straddle by requiring, among other things, that (1) losses realized on disposition of one position of a straddle be deferred to the extent of any unrealized gain in an offsetting position until the latter position is disposed of, (2) the Fund's holding period in certain straddle positions not begin until the straddle is terminated (possibly resulting in gain being treated as short-term rather than long-term capital gain), and (3) losses recognized with respect to certain straddle positions, that otherwise would constitute short-term capital losses, be treated as long-term capital losses. Applicable regulations also provide certain "wash sale" rules, which apply to transactions where a position is sold at a loss and a new offsetting position is acquired within a prescribed period, and "short sale" rules applicable to straddles. Different elections are available, which may mitigate the effects of the straddle rules, particularly with respect to a "mixed straddle" (i.e., a straddle at least one, but not all, positions of which are Section 1256 contracts).

When a covered call option written (sold) by the Fund expires, the Fund will realize a short-term capital gain equal to the amount of the premium it received for writing the option. When the Fund terminates its obligations under such an option by entering into a closing transaction, it will realize a short-term capital gain (or loss), depending on whether the cost of the closing transaction is less (or more) than the premium it received when it wrote the option. When a covered call option written by the Fund is exercised, it will be treated as having sold the underlying security, producing long-term or short-term capital gain or loss, depending on the holding period of the underlying security and whether the sum of the option price received on the exercise plus the premium received when it wrote the option is more or less than the underlying security's basis.

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If the Fund has an "appreciated financial position" - generally, any position (including an interest through an option, futures or forward contract or short sale) with respect to any stock, debt instrument (other than "straight debt") or partnership interest the fair market value of which exceeds its adjusted basis - and enters into a "constructive sale" of the position, the Fund will be treated as having made an actual sale thereof, with the result that it will recognize gain at that time. A constructive sale generally consists of a short sale, an offsetting notional principal contract or a futures or forward contract the Fund or a related person enters into with respect to the same or substantially identical property. In addition, if the appreciated financial position is itself a short sale or such a contract, acquisition of the underlying property or substantially identical property will be deemed a constructive sale. The foregoing will not apply, however, to any transaction of the Fund during any taxable year that otherwise would be treated as a constructive sale if the transaction is closed within 30 days after the end of that year and the Fund holds the appreciated financial position unhedged for 60 days after that closing (i.e., at no time during that 60-day period is the Fund's risk of loss regarding that position reduced by reason of certain specified transactions with respect to substantially identical or related property, such as having an option to sell, being contractually obligated to sell, making a short sale or granting an option to buy substantially identical stock or securities).

Certain aspects of the tax treatment of derivative instruments are currently unclear and may be affected by changes in legislation, regulations, administrative rules, and/or other legally binding authority that could affect the treatment of income from those instruments and the character, timing of recognition and amount of the Fund's taxable income or net realized gains and distributions. If the IRS were to assert successfully that income the Fund derives from those investments does not constitute Qualifying Income, the Fund might cease to qualify as a RIC (with the consequences described above under "Taxation of the Fund") or might be required to reduce its exposure to such investments.

The Fund may acquire zero coupon or other securities issued with original issue discount ("OID") (such as STRIPS). As a holder of those securities, the Fund must include in its gross income the OID that accrues on them during the taxable year, even if it receives no corresponding payment on them during the year. Similarly, the Fund must include in its gross income each taxable year securities it receives as "interest" on pay-in-kind securities. Because the Fund annually must distribute substantially all of its investment company taxable income, including any accrued OID and other non-cash income (such as that "interest"), to satisfy the Distribution Requirement and avoid imposition of the Excise Tax, it may be required in a particular taxable year to distribute as a dividend an amount that is greater than the total amount of cash it actually receives. Those distributions will be made from the Fund's cash assets or from the proceeds of sales of its portfolio securities, if necessary. The Fund may realize capital gains or losses from those sales, which would increase or decrease its investment company taxable income and/or net capital gain.

**<u>Taxation of the Fund's Taxable Shareholders</u>**

**General** - Dividends and other distributions the Fund declares in the last quarter of any calendar year that are payable to shareholders of record on a date in that quarter will be deemed to have been paid by the Fund and received by those shareholders on or before December 31 of that year even if the Fund pays the distributions during the following January. Accordingly, those distributions will be reportable by, and taxed to, taxable shareholders for the taxable year in which that December 31 falls.

If Fund shares are sold at a loss after being held for six months or less, the loss will be treated as long-term, instead of short-term, capital loss to the extent of any capital gain distributions received on those shares. In addition, any loss a taxable shareholder realizes on a redemption of Fund shares will be disallowed to the extent the shares are replaced within a 61-day period beginning 30 days before and ending 30 days after the disposition of the shares; in that case, the basis in the acquired shares will be adjusted to reflect the disallowed loss. Investors also should be aware that the price of Fund shares at any time may reflect the amount of a forthcoming dividend or other distribution, so if they purchase Fund shares shortly before the record date for a distribution, they will pay full price for the shares and receive some part of the price back as a taxable distribution, even though it represents a partial return of invested capital.

**Basis Election and Reporting -** A Fund taxable shareholder who wants to use an acceptable method for basis determination with respect to Fund shares that the shareholder has acquired or acquires after 2011 ("Covered Shares") other than the average basis method (the Fund's default method) must elect to do so in writing (which may be electronic). The basis determination method a Fund taxable shareholder elects may not be changed with respect to a redemption (including a redemption that is part of an exchange) of Covered Shares after the settlement date of the redemption.

In addition to the requirement to report the gross proceeds from redemptions of Fund shares, the Fund (or its administrative agent) must report to the IRS and furnish to its taxable shareholders the basis information for Fund shares that are redeemed and indicate whether they had a short-term (one year or less) or long-term (more than one year) holding period. Fund taxable shareholders should consult with their tax advisers to determine the best IRS-accepted basis determination method for their tax situation and to obtain more information about how the basis reporting law applies to them. Fund taxable shareholders who acquire and hold Fund shares through a financial intermediary should contact their financial intermediary for information related to the basis election and reporting.

**Backup Withholding -** The Fund is required to withhold and remit to the U.S. Treasury 24% of dividends, capital gain distributions, and redemption proceeds (regardless of the extent to which gain or loss may be realized) otherwise payable to any individual who fails to certify that the taxpayer identification number furnished to the Fund is correct or who furnishes an incorrect number (together with the withholding described in the next sentence, "backup withholding"). Withholding at that rate also is required from the Fund's dividends and capital gain distributions otherwise payable to such a shareholder who (1) is subject to backup withholding for failure to report the receipt of interest or dividend income properly or (2) fails to certify to the Fund that he or she is not subject to backup withholding or that it is a corporation or other "exempt recipient." Backup withholding is not an additional tax; rather, any amounts so withheld may be credited against the shareholder's federal income tax liability or refunded if proper documentation is submitted to the IRS.

**Non-U.S. Shareholders -** Dividends the Fund pays to a shareholder who is a nonresident alien individual or foreign entity (each a "non-U.S. shareholder") — other than (1) dividends paid to a non-U.S. shareholder whose ownership of the Fund's shares is "effectively connected" with a trade or business within the United States the shareholder conducts and (2) capital gain distributions paid to a nonresident alien individual who is physically present in the United States for no more than 182 days during the taxable year -- generally are subject to 30% federal withholding tax (unless a reduced rate of withholding or a withholding exemption is provided under an applicable treaty). However, two categories of dividends the Fund might

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pay, "interest-related dividends" and "short-term capital gain dividends," to non-U.S. shareholders (with certain exceptions) and reported by it in writing to its shareholders are exempt from that tax. "Short-term capital gain dividends" are dividends that are attributable to net short-term gain, computed with certain adjustments. "Interest-related dividends" are dividends that are attributable to "qualified net interest income" (i.e., "qualified interest income," which generally consists of certain OID, interest on obligations "in registered form," and interest on deposits, less allocable deductions) from sources within the United States. Non-U.S. shareholders are urged to consult their own tax advisers concerning the applicability of that withholding tax.

**Foreign Account Tax Compliance Act ("FATCA") -** Under FATCA, "foreign financial institutions" ("FFIs") and "non-financial foreign entities" ("NFFEs") that are Fund shareholders may be subject to a generally nonrefundable 30% withholding tax on income dividends the Fund pays. As discussed more fully below, the FATCA withholding tax generally can be avoided (a) by an FFI, if it reports certain information regarding direct and indirect ownership of financial accounts U.S. persons hold with the FFI, and (b) by an NFFE that certifies its status as such and, in certain circumstances, information regarding substantial U.S. owners. Proposed regulations (having current effect) have been issued to eliminate certain FATCA withholding taxes, including the withholding tax on investment sale proceeds that was scheduled to begin in 2019, and to defer the effective date of other taxes.

The U.S. Treasury has negotiated intergovernmental agreements ("IGAs") with certain countries and is in various stages of negotiations with other foreign countries with respect to alternative approaches to implement FATCA. An entity in one of those countries may be required to comply with the terms of the IGA instead of U.S. Treasury regulations. An FFI resident in a country that has entered into a Model I IGA with the United States must report to that country's government (pursuant to the terms of the applicable IGA and applicable law), which will, in turn, report to the IRS. An FFI resident in a Model II IGA country generally must comply with U.S. regulatory requirements, with certain exceptions, including the treatment of recalcitrant accountholders. An FFI resident in one of those countries that complies with whichever of the foregoing applies will be exempt from FATCA withholding.

An FFI can avoid FATCA withholding by becoming a "participating FFI," which requires the FFI to enter into a tax compliance agreement with the IRS under the Internal Revenue Code. Under such an agreement, a participating FFI agrees to (1) verify and document whether it has U.S. accountholders, (2) report certain information regarding their accounts to the IRS, and (3) meet certain other specified requirements.

An NFFE that is the beneficial owner of a payment from the Fund can avoid FATCA withholding generally by certifying its status as such and, in certain circumstances, either that (1) it does not have any substantial U.S. owners or (2) it does have one or more such owners and reports the name, address, and taxpayer identification number of each such owner. The NFFE will report to the Fund or other applicable withholding agent, which may, in turn, report information to the IRS.

Those foreign shareholders also may fall into certain exempt, excepted, or deemed compliant categories established by U.S. Treasury regulations, IGAs, and other guidance regarding FATCA. An FFI or NFFE that invests in the Fund will need to provide it with documentation properly certifying the entity's status under FATCA to avoid FATCA withholding. The requirements imposed by FATCA are different from, and in addition to, the tax certification rules to avoid backup withholding described above. Foreign investors are urged to consult their tax advisers regarding the application of these requirements to their own situation and the impact thereof on their investment in the Fund.

**Income from Investment in REITs and MLPs -**The Fund may invest in the equity securities of corporations or other entities that invest in U.S. real property, including REITs. The sale of a U.S. real property interest by a REIT or "United States real property holding corporation" in which the Fund invests may trigger special tax consequences to the Fund's non-U.S. shareholders, who are urged to consult their tax advisers regarding those consequences.

The Fund may invest in REITs that (1) hold residual interests in REMICs or (2) engage in mortgage securitization transactions that cause the REITs to be taxable mortgage pools ("TMPs") or have a qualified REIT subsidiary that is a TMP. A part of the net income allocable to REMIC residual interest holders may be an "excess inclusion." The Internal Revenue Code authorizes the issuance of regulations dealing with the taxation and reporting of excess inclusion income of REITs and RICs that hold residual REMIC interests and of REITs, or qualified REIT subsidiaries, that are TMPs. Although those regulations have not yet been issued, the U.S. Treasury and the IRS issued a notice in 2006 ("Notice") announcing that, pending the issuance of further guidance (which has not yet been issued), the IRS would apply the principles in the following paragraphs to all excess inclusion income, whether from REMIC residual interests or TMPs.

The Notice provides that a REIT must (1) determine whether it or its qualified REIT subsidiary (or a part of either) is a TMP and, if so, calculate the TMP's excess inclusion income under a "reasonable method," (2) allocate its excess inclusion income to its shareholders generally in proportion to dividends paid, (3) inform shareholders that are not "disqualified organizations" (i.e., governmental units and tax-exempt entities that are not subject to tax on their "unrelated business taxable income" ("UBTI")) of the amount and character of the excess inclusion income allocated thereto, (4) pay tax (at the highest federal income tax rate imposed on corporations, currently 21%) on the excess inclusion income allocable to its shareholders that are disqualified organizations, and (5) apply the withholding tax provisions with respect to the excess inclusion part of dividends paid to foreign persons without regard to any treaty exception or reduction in tax rate. Excess inclusion income allocated to certain tax-exempt entities (including qualified retirement plans, IRAs, and public charities) constitutes UBTI to them.

A RIC with excess inclusion income is subject to rules identical to those in clauses (2) through (5) above (substituting "that are nominees" for "that are not 'disqualified organizations'" in clause (3) and inserting "record" after "its" in clause (4)). The Notice further provides that a RIC is not required to report the amount and character of the excess inclusion income allocated to its shareholders that are not nominees, except that (1) a RIC with excess inclusion income from all sources that exceeds 1% of its gross income must do so and (2) any other RIC must do so by taking into account only excess inclusion income allocated to the RIC from REITs the excess inclusion income of which exceeded 3% of its dividends. A Fund will not invest directly in REMIC residual interests and does not intend to invest in REITs that, to its knowledge, invest in those interests or are TMPs or have a qualified REIT subsidiary that is a TMP.

After calendar year-end, REITs can and often do change the category (e.g., ordinary income dividend, capital gain distribution, or "return of capital") of one or more of the distributions they have made during that year, which would result at that time in the Fund, if it held shares in such a REIT during

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that year, also having to re-categorize some of the distributions it made to its shareholders. These changes would be reflected in annual Forms 1099 sent to the Fund's shareholders, together with other tax information. Those forms generally will be distributed to shareholders in February of each year, although the Fund may, in one or more years, request from the IRS an extension of time to distribute those forms until mid-March to enable it to receive the latest information it can from the REITs in which it invests and thereby accurately report that information to shareholders on a single form (rather than having to send shareholders an amended form).

Effective for taxable years beginning after December 31, 2017 and before January 1, 2026, the Internal Revenue Code generally allows individuals and certain other non-corporate entities a deduction for 20% of (1) "qualified REIT dividends" and (2) "qualified publicly traded partnership income" (such as income from MLPs). Treasury regulations permit a RIC to pass the character of its qualified REIT dividends through to its shareholders provided certain holding period requirements are met. As a result, a shareholder in the Fund will be eligible to receive the benefit of the same 20% deduction with respect to the Fund's REIT-based dividends as is available to an investor who directly invests in REITs. There currently is no similar pass-through of the 20% deduction with respect to a RIC's qualified publicly traded partnership income.

**Other Taxes** - Statutory rules and regulations regarding state and local taxation of ordinary income dividends, QDI dividends and net capital and foreign currency gain distributions may differ from the federal income taxation rules described above. Distributions may also be subject to additional state, local and foreign taxes depending on each shareholder's situation.

Investors should consult their own tax advisors with respect to the tax consequences to them of an investment in the Fund based on their particular circumstances. The Fund does not expect to receive a ruling from any tax authority or an opinion of tax counsel with respect to its treatment of any tax positions. Tax consequences of transactions are not the primary consideration of the Fund in implementing its investment strategy.

**DESCRIPTION OF THE TRUST**

The Trust is an entity of the type commonly known as a "Delaware statutory trust" and is registered under the Investment Company Act, as an open-end series management investment company. The Trust was organized as a Delaware statutory trust on January 17, 2017. Although Delaware law statutorily limits the potential liabilities of a Delaware statutory trust's shareholders to the same extent as it limits the potential liabilities of a Delaware corporation's shareholders, shareholders of the Fund could, under certain conflicts of laws jurisprudence in various states, be held personally liable for the obligations of the Fund. However, the Trust's Declaration of Trust contains an express disclaimer of shareholder liability for acts or obligations of the Trust and provides for indemnification and reimbursement of expenses out of Trust property for any shareholder held personally liable for the obligations of the Trust. The Declaration of Trust also provides that the Trust may maintain appropriate insurance (e.g., fidelity bonding) for the protection of the Trust, its shareholders, Trustees, officers, employees and agents to cover possible tort and other liabilities. Thus, the risk of a shareholder incurring financial loss due to shareholder liability is limited to circumstances in which both inadequate insurance existed and the Trust itself was unable to meet its obligations. The Trust has not engaged in any other business.

The Trust was created to manage money for large institutional investors, including pension and 401(k) plans for American Airlines, Inc., that are "accredited investors" within the meaning of Regulation D under the 1933 Act, and that are also "qualified purchasers" as defined in Section 2(a)(51) of the Investment Company Act.

**FINANCIAL STATEMENTS**

The Fund's independent registered public accounting firm, PricewaterhouseCoopers LLP, audits and reports on the Fund's annual financial statements. The audited financial statements include the schedule of investments, statement of assets and liabilities, statement of operations, statements of changes in net assets, financial highlights, notes and report of independent registered public accounting firm.

The audited financial statements are incorporated by reference to the [American Beacon Institutional Funds Trust's Annual Report to Shareholders of the American Beacon Diversified Fund for the period ended October 31, 2022](https://www.sec.gov/Archives/edgar/data/1700933/000119312523004516/d375011dncsr.htm). The information for the fiscal years ended October 31, 2018, October 31, 2019, October 31, 2020, and October 31, 2021 was audited by the Fund's prior independent registered public accounting firm.

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**APPENDIX A**

**AMERICAN BEACON ADVISORS, INC.**<br>**SUMMARY OF PROXY VOTING POLICY AND PROCEDURES**

Proxy voting is an important component of investment management and must be performed in a dutiful and purposeful fashion in order to secure the best long-term interests of the advisory clients of American Beacon Advisors, Inc. ("AmBeacon"). AmBeacon's proxy voting policies and procedures are designed to implement AmBeacon's duty to vote proxies in clients' best interests. Given that AmBeacon manages portfolios that invest solely in fixed-income securities, the only securities for which we expect to receive proxies are money market mutual funds. As such, the proxy voting policies and procedures set forth voting guidelines for the proxy issues and proposals common to money market funds.

For routine proposals that will not change the structure, bylaws or operations of the money market fund, AmBeacon's policy is to support management; however, each proposal will be considered individually focusing on the financial interests of the client portfolio. Non-routine proposals, such as board elections, advisory contract and distribution plan approvals, investment objective changes, and mergers, will generally be reviewed on a case-by-case basis with AmBeacon first and foremost considering the effect of the proposal on the portfolio.

Items to be evaluated on a case-by-case basis and proposals not contemplated in the policies set forth above will be assessed by AmBeacon. In these situations, AmBeacon will use its judgment to vote in the best interest of the client portfolio. For all proposals, especially controversial or case-by-case evaluations, AmBeacon will be responsible for individually identifying significant issues that could impact the investment performance of the portfolio.

AmBeacon manages portfolios for the American Beacon Funds, the American Beacon Select Funds, and the American Beacon Institutional Funds Trust (collectively, the "Funds"). AmBeacon may invest a Fund in shares of the American Beacon U.S. Government Money Market Select Fund. If the American Beacon U.S. Government Money Market Select Fund solicits a proxy for which another Fund is entitled to vote, AmBeacon's interests as manager of the American Beacon U.S. Government Money Market Select Fund might appear to conflict with the interests of the shareholders of the other Fund. In these cases, AmBeacon will vote the Fund's shares in accordance with the Select Funds' Board of Trustees' recommendations in the proxy statement.

**AMERICAN BEACON FUNDS**<br>**AMERICAN BEACON SELECT FUNDS**<br>**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**<u>PROXY VOTING POLICY AND PROCEDURES</u>**<br>**Last Amended February 7, 2022** 

**<u>Preface</u>**

Proxy voting is an important component of investment management and must be performed in a dutiful and purposeful fashion to secure the best long-term interests of shareholders of the American Beacon Funds, the American Beacon Select Funds ("Select Funds"), and the American Beacon Institutional Funds Trust (collectively, the "Funds"). Therefore, this Proxy Voting Policy and Procedures (the "Policy") have been adopted by the Funds.

The Funds are managed by American Beacon Advisors, Inc. (the "Manager"). The Manager may allocate discrete portions of the Funds among sub-advisors, and the Manager may directly manage all or a portion of the assets of certain Funds. The Funds' respective Boards of Trustees have delegated proxy voting authority to the Manager. The Manager has in turn delegated proxy voting authority to each sub-advisor with respect to the sub-advisor's respective portion of the Fund(s) under management, but the Manager has retained the authority to override a proposed proxy voting decision by a sub-advisor. For the securities held in their respective portion of each Fund, the Manager and the sub-advisors make voting decisions pursuant to their own proxy voting policies and procedures, which have been adopted by the applicable Fund and approved by the applicable Fund's Board of Trustees.

**<u>Conflicts of Interest</u>**

The Board of Trustees seeks to ensure that proxies are voted in the best interests of Fund shareholders. For certain proxy proposals, the interests of the Manager, the sub-advisors and/or their affiliates may differ from Fund shareholders' interests. To avoid the appearance of impropriety and to fulfill their fiduciary responsibility to shareholders in these circumstances, the Manager and the sub-advisors are required to establish procedures that are reasonably designed to address material conflicts between their interests and those of the Funds.

When a sub-advisor deems that it is conflicted with respect to a voting matter, its policy may call for it to seek voting instructions from the client. The Manager is authorized by the Boards of Trustees to consider any such matters and provide voting instructions to the sub-advisor, unless the Manager has determined that its interests are conflicted with Fund shareholders with respect to the voting matter. In those instances, the Manager will instruct the sub-advisor to vote in accordance with the recommendation of a third-party proxy voting advisory service.

Each Fund can invest in the shares of the American Beacon U.S. Government Money Market Select Fund. If the American Beacon U.S. Government Money Market Select Fund issues a proxy for which another Fund is entitled to vote, the Manager's interests regarding the American Beacon U.S. Government Money Market Select Fund might appear to conflict with the interests of the shareholders of the other Fund. In these cases, the Manager will vote in accordance with the Select Funds' Board of Trustees' recommendations in the proxy statement.

If the methods for addressing conflicts of interest, as described above, are deemed by the Manager to be unreasonable due to cost, timing or other factors, then the Manager may decline to vote in those instances.

**<u>Securities on Loan</u>**

With respect to the Funds that engage in securities lending, the Manager shall engage a proxy voting service to notify the Manager before the record date about the occurrence of future shareholder meetings, as feasible. The Manager will determine whether or not to recall shares of the applicable

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security that are on loan with the intent of the Manager or the sub-advisor, as applicable, voting such shares. The Manager's determination shall be based on factors which may include the nature of the meeting (i.e., annual or special), the percentage of the proxy issuer's outstanding securities on loan, any other information regarding the proxy proposals of which the Manager may be aware, and the loss of securities lending income to a Fund as a result of recalling the shares on loan.

**<u>Recordkeeping</u>**

The Manager and the sub-advisors shall maintain records of all votes cast on behalf of the Funds. Such documentation will include the firm's proxy voting policies and procedures, company reports provided by proxy voting advisory services, additional information gathered by the Manager or sub-advisor that was material to reaching a voting decision, and communications to the Manager regarding any identified conflicts. The Manager and the sub-advisors shall maintain voting records in a manner to facilitate the Funds' production of the Form N-PX filing on an annual basis.

**<u>Disclosure</u>**

The Manager will coordinate the compilation of the Funds' proxy voting record for each year ended June 30 and file the required information with the SEC via Form N-PX by August 31. The Manager will include a summary of the Policy and the proxy voting policies and procedures of the Manager and the sub-advisors, as applicable, in each Fund's Statement of Additional Information ("SAI"). In each Fund's annual and semi-annual reports to shareholders, the Manager will disclose that a description of the Policy and the proxy voting policies and procedures of the Manager and the sub-advisors, as applicable, is a) available upon request, without charge, by toll-free telephone request, b) on the Funds' website (if applicable), and c) on the SEC's website in the SAI. The SAI and shareholder reports will also disclose that the Funds' proxy voting record is available by toll-free telephone request (or on the Funds' website) and on the SEC's website by way of the Form N-PX. Within three business days of receiving a request, the Manager will send a copy of the policy description or voting record by first-class mail.

**<u>Manager Oversight</u>**

The Manager shall review a sub-advisor's proxy voting policies and procedures for compliance with this Policy and applicable laws and regulations prior to initial delegation of proxy voting authority and on at least an annual basis thereafter.

**<u>Board Reporting</u>**

On at least an annual basis, the Manager will present a summary of the voting records of the Funds to the Boards of Trustees for their review. The Manager will notify the Boards of Trustees of any material changes to its proxy voting policies and procedures.

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**APPENDIX B**

**ARISTOTLE CAPITAL MANAGEMENT LLC** **PROXY VOTING POLICY**

**Introduction**

Aristotle Capital Management, LLC ("Aristotle"), in compliance with the principles of Rule 204-2 of the Advisers Act, has adopted and implemented policies and procedures for voting proxies in the best interest of clients, to describe the procedures to clients, and to tell clients how they may obtain information about how Aristotle has actually voted their proxies. While decisions about how to vote must be determined on a case-by-case basis, Aristotle's general policies and procedures for voting proxies are set forth below.

**Proxy Voting Policies and Procedures**

Aristotle believes that the voting of proxies is an important part of portfolio management as it represents an opportunity for shareholders to make their voices heard and to influence the direction of a company. Unless otherwise directed by the client, Aristotle will vote proxies and will vote such proxies in the manner that, in its opinion, serves the best interests of the clients in accordance with this policy. When voting proxies for non-model holdings, Aristotle Capital will vote in accordance with Institutional Shareholder Services ("ISS") recommendation. (Non-model holdings refers to securities where the client has provided instruction to Aristotle Capital to restrict trading the securities.) Otherwise, the following policies and procedures are implemented.

The following details Aristotle's philosophy and practice regarding the voting of proxies.

**Voting Guidelines**

Aristotle has adopted guidelines for certain types of matters to assist the CIO or designee in the review and voting of proxies on a case-by-case basis. These guidelines are set forth below:

**1. Corporate Governance**

**a. Election of Directors and Similar Matters**

In an uncontested election, Aristotle will generally vote in favor of management's proposed directors. In a contested election, Aristotle will evaluate proposed directors on a case-by-case basis. With respect to proposals regarding the structure of a company's board of directors, Aristotle will review any contested proposal on its merits.

Notwithstanding the foregoing, Aristotle expects to **<u>support</u>** proposals to:

■ Limit directors' liability and broaden directors' indemnification rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;And expects to generally **<u>vote against</u>** proposals to:

■ Adopt or continue the use of a classified board structure; and

■ Add special interest directors to the board of directors (e.g., efforts to expand the board of directors to control the outcome of a particular decision).

**b. Audit Committee Approvals**

Aristotle generally supports proposals that help ensure that a company's auditors are independent and capable of delivering a fair and accurate opinion of a company's finances. Aristotle will generally vote to ratify management's recommendation and selection of auditors.

**c. Shareholder Rights**

Aristotle may consider all proposals that will have a material effect on shareholder rights on a case-by-case basis. Notwithstanding the foregoing, Aristotle expects to generally support proposals to:

■ Adopt confidential voting and independent tabulation of voting results; and

■ Require shareholder approval of poison pills;

And expects to generally **<u>vote against</u>** proposals to:

■ Adopt super-majority voting requirements; and

■ Restrict the rights of shareholders to call special meetings, amend the bylaws or act by written consent.

**2. Anti-Takeover Measures, Corporate Restructurings and Similar Matters**

Aristotle may review any proposal to adopt an anti-takeover measure, to undergo a corporate restructuring (e.g., change of entity form or state of incorporation, mergers or acquisitions) or to take similar action by reviewing the potential short and long-term effects of the proposal on the company. These effects may include, without limitation, the economic and financial impact the proposal may have on the company, and the market impact that the proposal may have on the company's stock.

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Notwithstanding the foregoing, Aristotle expects to generally **<u>support</u>** proposals to:

■ Prohibit the payment of greenmail (i.e., the purchase by the company of its own shares to prevent a hostile takeover);

■ Adopt fair price requirements (i.e., requirements that all shareholders be paid the same price in a tender offer or takeover context), unless the CIO deems them sufficiently limited in scope; and

■ Require shareholder approval of "poison pills."

And expects to generally **<u>vote against</u>** proposals to:

■ Adopt classified boards of directors;

■ Reincorporate a company where the primary purpose appears to the CIO to be the creation of takeover defenses; and

■ Require a company to consider the non-financial effects of mergers or acquisitions.

**3. Capital Structure Proposals**

Aristotle will seek to evaluate capital structure proposals on their own merits on a case- by-case basis.<br>Notwithstanding the foregoing, Aristotle expects to generally **<u>support</u>** proposals to:

■ Eliminate preemptive rights.

**4. Compensation**

Aristotle generally supports proposals that encourage the disclosure of a company's compensation policies. In addition, Aristotle generally supports proposals that fairly compensate executives, particularly those proposals that link executive compensation to performance. Aristotle may consider any contested proposal related to a company's compensation policies on a case-by-case basis.

Notwithstanding the foregoing, Aristotle expects to generally **<u>support</u>** proposals to:

■ Require shareholders' approval of golden parachutes; and

■ Adopt golden parachutes that do not exceed 1 to 3 times the base compensation of the applicable executives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;And expects to generally **<u>vote against</u>** proposals to:

■ Adopt measures that appear to the CIO to arbitrarily limit executive or employee benefits.

**5. Stock Option Plans and Share Issuances**

Aristotle evaluates proposed stock option plans and share issuances on a case-by-case basis. In reviewing proposals regarding stock option plans and issuances, Aristotle may consider, without limitation, the potential dilutive effect on shareholders and the potential short and long-term economic effects on the company. We believe that stock option plans do not necessarily align the interest of executives and outside directors with those of shareholders. We believe that well thought out cash compensation plans can achieve these objectives without diluting shareholders ownership. Therefore, we generally will vote against stock option plans. However, we will review these proposals on a case-by- case basis to determine that shareholders' interests are being represented. We certainly are in favor of management, directors and employees owning stock, but prefer that the shares are purchased in the open market.

Notwithstanding the foregoing, Aristotle expects to generally vote against proposals to:

■ Establish or continue stock option plans and share issuances that are not in the best interest of the shareholders.

**6. Corporate Responsibility and Social Issues**

Aristotle generally believes that ordinary business matters (including, without limitation, positions on corporate responsibility and social issues) are primarily the responsibility of a company's management that should be addressed solely by the company's management. These types of proposals, often initiated by shareholders, may request that the company disclose or amend certain business practices.

Aristotle will consider proposals involving corporate responsibility and social issues on a case-by-case basis.

**7. Conflicts**

In cases where Aristotle is aware of a conflict between the interests of a client(s) and the interests of Aristotle or an affiliated person of Aristotle (e.g., a portfolio holding is a client or an affiliate of a client of Aristotle), the Aristotle will take the following steps:

(a) vote matters that are specifically covered by this proxy voting policy (e.g., matters where Aristotle's vote is strictly in accordance with this Policy and not in its discretion) in accordance with this policy; and

(b) for other matters, contact the client for instructions with respect to how to vote the proxy.

**8. Disclosure of Proxy Voting Policy**

Upon receiving a written request from a client, Aristotle will provide a copy of this policy within a reasonable amount of time. If approved by the client, this policy and any requested records may be provided electronically.

**9. Recordkeeping**

Aristotle shall keep the following records for a period of at least five years, the first two in an easily accessible place:

(i) A copy of this policy;<br>(ii) Proxy statements received regarding client securities;<br>(iii) Records of votes cast on behalf of clients;

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(iv) Any documents prepared by Aristotle that were material to making a decision how to vote, or that memorialized the basis for the decision; and<br>(v) Records of client requests for proxy voting information.

Aristotle may rely on proxy statements filed on the SEC EDGAR system instead of keeping its own copies, and may rely on proxy statements and records of proxy votes cast by Aristotle that are maintained with a third party such as a proxy voting service, provided that Aristotle has obtained an undertaking from the third party to provide a copy of the documents promptly upon request.

**10. Proxy Voting for Accounts Subject to ERISA**

Department of Labor ("DOL") provided investment managers the following guidance about their ERISA responsibilities, when voting proxies:

Where the authority to manage plan assets has been delegated to an investment manager, only the investment manager has authority to vote proxies, except when the named fiduciary has reserved to itself or to another named fiduciary (as authorized by the plan document) the right to direct a plan trustee regarding the voting of proxies.<sup>1</sup>

DOL has also indicated that an adviser with a duty to vote proxies has an obligation to take reasonable steps under the circumstances to ensure that it receives the proxies. Appropriate steps include informing the plan sponsor and its trustees, bank custodian or broker-dealer custodian of the requirement that all proxies be forwarded to the adviser and making periodic reviews during the proxy season, including follow-up letters and phone calls if necessary. When voting proxies, an investment manager must consider proxies as a plan asset and act solely in accordance with the economic interest of the plan and its participants and beneficiaries.<sup>2</sup>

DOL has also indicated that the adviser must consider any costs involved when voting proxies for plan assets. Adviser should evaluate material facts that form the basis for any particular voting decision or other exercise of shareholder right. Aristotle Capital may decide, after a facts and circumstances analysis, to refrain from voting if it is determined that a plan client would incur unreasonable costs.

DOL has also indicated that the adviser must exercise prudence and diligence in the selection and monitoring of persons, if any, selected to advise or otherwise assist with exercises of shareholder rights. Aristotle Capital has contracted with ISS to provide proxy voting support and periodically reviews ISS guidelines as part of vendor oversight.

DOL has also indicated that the adviser must properly document votes and that the named fiduciary has a duty to monitor the proxy voting process of the adviser. Advisers should be prepared to issue proxy voting reports to clients. Records of "solicitation" activities by issuers (or others) should be maintained. Records should reflect a verification of each proxy to each share in each account. Records should be maintained in such a manner that it is easy to backtrack. Copies of each executed ballot should be maintained. Aristotle Capital has access to proxy voting records through ISS and can issue copies of proxy voting reports to clients upon request. Aristotle Capital maintains a log of solicitations it receives from issuers or others.

1 Interpretive Bulletin 94-2, July 28, 1994.<br>2 Department of Labor ERISA Rule 404a-1(e)(2)(ii).

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**BARROW, HANLEY, MEWHINNEY & STRAUSS, LLC**<br>**PROXY VOTING POLICY**

**Proxy Voting Policy & Guidelines**

Barrow Hanley has accepted authority to vote proxies for our clients who have delegated this responsibility to us. It is the Firm's Policy to vote our clients' proxies in the best economic interests of our clients, the beneficial owners of the shares. The Firm has adopted this Proxy Voting Policy and procedures for handling research, voting, reporting, and disclosing proxy votes, and this set of Guidelines ("Guidelines") that provide a framework for assessing proxy proposals.

Barrow Hanley votes all clients' proxies the same based on the Firm's Policy and Guidelines. If or when additional costs for voting proxies are identified, the Firm will determine whether such costs exceed the expected economic benefit of voting the proxy and may abstain from voting proxies for ERISA Plan clients. However, if/when such voting costs are borne by Barrow Hanley and not by the client, all proxies will be voted for all clients.

Disclosure information about the Firm's Proxy Voting Policy & Guidelines is provided in the Firm's Form ADV Part 2.

To assist in the proxy voting process, at its own expense, Barrow Hanley retains Glass Lewis & Co. ("Glass Lewis") as proxy service provider. Glass Lewis provides:

■ Research on corporate governance, financial statements, business, legal and accounting risks,

■ Proxy voting recommendations, including environmental, social, and governance ("ESG") voting Guidelines,

■ Portfolio accounting and reconciliation of shareholdings for voting purposes,

■ Proxy voting execution, record keeping, and reporting services.

**Proxy Oversight Committee, Proxy Coordinators, and Proxy Voting Committee**

■ Barrow Hanley's Proxy Oversight Committee is responsible for implementing and monitoring this proxy voting Policy, procedures, disclosures, and recordkeeping.

■ The Proxy Oversight Committee conducts periodic reviews of proxy votes to ensure that the Policy is observed, implemented properly, and amended or updated, as appropriate.

■ The Proxy Oversight Committee is comprised of the CCO, the Responsible Investing Committee Lead, the Head of Investment Operations, the ESG Research Coordinator, and an At-Large Portfolio Manager.

■ Proxy Coordinators are responsible for organizing and reviewing the data and recommendations of Glass Lewis.

■ Proxy Coordinators are responsible for ensuring that the proxy ballots are routed to the appropriate research analyst based on industry sector coverage.

■ Research Analysts are responsible for review and evaluate proposals and make recommendations to the Proxy Voting Committee to ensure that votes are consistent with the Firm's analysis.

■ Equity Portfolio Managers are members of the Proxy Voting Committee.

■ Equity Portfolio Managers vote proposals based on our Guidelines, internal research recommendations, and the research from Glass Lewis. Proxy votes must be approved by the Proxy Voting Committee before submitting to Glass Lewis.

■ Proxies for the Diversified Small Cap Value accounts are voted in accordance with the Glass Lewis' recommendations for the following reasons:

■ Investment selection is based on a quantitative model,

■ The holding period is too short to justify the time for analysis necessary to vote.

**Conflicts of Interest**

Potential conflicts may arise when:

■ Clients elect to participate in securities lending arrangements; in such cases, the votes follow the shares. Barrow Hanley is not a party to the client's lending arrangement and typically does not have information about shares on loan. Under these circumstances the proxies for those shares may not be voted.

■ If/when a proxy voting issue is determined to be financially material, the Firm makes a best-efforts attempt to alert clients and their custodial bank to recall shares from loan to be voted. In this context, Barrow Hanley defines a financially material issue to be issues deemed by our investment team to have significant economic impact. The ultimate decision on whether to recall shares is the responsibility of the client.

■ Barrow Hanley invests in equity securities of corporations who are also clients of the Firm. In such cases, the Firm seeks to mitigate potential conflicts by:

■ Making voting decisions for the benefit of the shareholder(s), our clients,

■ Uniformly voting every proxy based on Barrow Hanley's internal research and consideration of Glass Lewis' recommendations, and

■ Documenting the votes of companies who are also clients of the Firm.

■ If a material conflict of interest exists, members from the Proxy Voting and Oversight Committees will determine if the affected clients should have an opportunity to vote their proxies themselves, or whether Barrow Hanley will address the specific voting issue through other objective means, such as voting the proxies in a manner consistent with a predetermined voting policy or accepting the voting recommendation of Glass Lewis.

**Other Policies and Procedures**

■ Barrow Hanley sends a daily electronic transfer of equity positions to Glass Lewis.

■ Glass Lewis identifies accounts eligible to vote for each security and posts the proposals and research on its secure, proprietary online system.

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■ Barrow Hanley sends a proxy report to clients at least annually and/or as requested by client, listing the number of shares voted and disclosing how proxies were voted.

■ Barrow Hanley retains voting records in accordance with the Firm's Books and Records Policy. Glass Lewis retains the Firm's voting records for seven years.

■ Proxy Coordinators are responsible for retaining the following proxy records:

■ These policies, procedures, and amendments;

■ Proxy statements regarding our clients' securities;

■ A record of each proxy voted;

■ Proxy voting reports that are sent to clients annually;

■ Internal documents related to voting decisions; and

■ Records of clients' requests for proxy voting information and/or correspondence about votes.

**Voting Debt and/or Bank Loan Securities**

Barrow Hanley's proxy voting responsibilities may include voting on proposals, amendments, consents, or resolutions solicited by or in respect to securities related to bank loan investments. Exceptions Limited exceptions to this Policy may be permitted based on a client's circumstances, such as, foreign regulations that create a conflict with U.S. practices, expenses to facilitate voting when the costs outweigh the benefit of voting the proxies, or other circumstances.

**Guidelines**

Barrow Hanley's set of proxy voting Guidelines is a framework for assessing proposals. Each proposal is evaluated based on its facts and circumstances. The Firm reviews and considers ESG issues along with other financially material factors to assess the financially material impact on the long-term value of the shares. Our Guidelines address the following issues:

■ Board of Directors

■ Independent Auditors

■ Compensation Issues

■ Corporate Structure and Shareholder Rights

■ Shareholder Proposals and ESG Issues

■ Voting of Non-U.S./Foreign Shares

Issues that do not conform to these Guidelines are evaluated by the Proxy Voting Committee and voted in the best interest of our clients.

**Board of Directors**

*Election of Directors*<br>Barrow Hanley believes that good corporate governance begins with a board of majority-independent directors and committees, including independent directors who serve on Audit, Compensation, and Nominating committees.

Barrow Hanley will generally approve:

■ A slate of nominees comprised of a two-thirds majority of independent directors.

■ Nominees for Audit, Compensation and/or Nominating committees who are independent of management.

■ Nominees who we believe have the required skills and diverse backgrounds to make informed judgments about the subject matter for which the committee is responsible.

■ We attempt to target board diversity of at least 30%.

Barrow Hanley will generally not approve:

■ A slate of nominees that results in a majority non-independent directors.

■ Nominees for Audit, Compensation and/or Nominating committees who are not independent of management.

■ Incumbent board members who failed to attend at least 75% of board and applicable committee meetings.

■ Nominees who have served on boards or as executives of companies with records of poor performance, inadequate risk oversight, excessive compensation, audit, or accounting-related problems and/or other indicators of mismanagement or actions against the interests of shareholders.

■ Nominees whose actions on other committees demonstrate serious failures of governance, which may include acting to significantly reduce shareholder rights, or failure to respond to previous vote requests for directors and shareholder proposals.

■ An independent director who has in the past three years, had a material financial, familial, or other relationship with the company or its executives.

■ Members of a Nominating committee where the board has an average tenure of over ten years and has not appointed a new member to the board in at least five years

■ Members of a Nominating committee where the board lacks diversity.

*Combined Chairman / CEO Role*<br>When the roles of a board's chair and CEO are combined a strong lead independent director is necessary. If a lead director is not appointed, Barrow Hanley supports proposals to separate the roles.

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*Contested Elections of Directors*<br>Barrow Hanley evaluates a nominee's qualifications, the incumbent board's performance, and the rationale behind dissident campaigns, and votes based on maximizing shareholder value.

*Classified Boards*<br>Barrow Hanley supports proposals to declassify existing boards, whether proposed by management or shareholders. In most cases we vote against proposals for classified board structures where only part of the board is elected each year.

If a board does not have a committee responsible for governance oversight and the board has not implement a proposal that received the requisite support, we vote against the entire board. If a proposal requests the board adopt a declassified structure, we vote against all directors and nominees up for election.

*Board Diversity*<br>Barrow Hanley supports boards with diverse backgrounds and nominees with relevant experience. Nominating and governance committees should consider diversity within the context of the company and industry. Shareholders are best served when boards make an effort to ensure a constituency that is not only reasonably diverse based on age, race, gender, and ethnicity, but also based on geographic knowledge, industry experience, board tenure and culture. Board diversity is one of many factors considered on a case-by-case basis when reviewing board elections.

*Board Tenure*<br>Barrow Hanley believes that independent directors are an important part of good governance. Long term service diminishes a member's independence. Directors serving on a board for 10 years or more are not considered to be independent. We recognize that in some cases, a director's tenure and experience on the board is beneficial to shareholders. Nominees' tenure on the board is evaluated to determine independence.

*Overboarding*<br>Barrow Hanley reviews a nominee's board commitments on a case-by-case basis and generally votes against nominees who are executives of public company while serving on two or more public boards or a non-executive who sits on four or more public boards.

*Proxy Access*<br>Shareholders' participation in electing directors enhances a board's accountability and responsiveness. Long-term investors can benefit from shareholder rights to nominate directors. Such rights should require a minimum percentage ownership (at least 5%) of outstanding shares held for a minimum period (at least three years) to nominate a maximum percentage of (up to 20%) for the board.

**Approval of Independent Auditors**

Independent auditors are a critical element of good governance. A company's relationship with its independent auditor should be limited to its audit. Barrow Hanley votes against auditor ratification proposals when the auditor has changed for 15 or more years. Auditor's fees should be limited to the audit work. Other, closely related activities that do not appear to impair the auditor's independence may be approved. Barrow Hanley evaluates the circumstances of auditors who have a substantial non-auditing relationship with the company on a case-by-case basis.

**Compensation Issues**

Compensation Plans should align the interests of long-term shareholders with the interests of management, employees, and directors.

*Stock-Based Compensation Plans*<br>Stock-based compensation plans should be administered by an independent committee of the board and approved by shareholders. Barrow Hanley opposes compensation plans that substantially dilute a shareholder's ownership interest, provides participants with excessive awards, and/or have other objectionable features. Compensation proposals are evaluated on a case-by-case basis using the following factors:

■ The company's industry group, market capitalization, and competitors' compensation plans.

■ Requirements for senior executives to hold a minimum amount/percentage of company stock.

■ Requirements for minimum holding periods for stock acquired through equity awards.

■ Performance-vesting awards, indexed options, and/or other grants linked to the company's performance.

■ Requirements that limit the concentration of equity grants to senior executives and provide for a broad-based plan.

■ Requirements for stock-based compensation plans as a substitute for cash compensation to deliver market-competitive total compensation.

Bonus Plans<br>Bonus based compensation plans should include the following features:

■ Periodic shareholder approval to properly qualify for deductions under Internal Revenue Code Section 162(m).

■ Performance measures relating to key value drivers of the company's business.

■ Maximum award amounts expressed in dollar amounts.

Bonus plans should not include excessive awards in both absolute and relative terms.

*Executive Compensation Plans (Say on Pay)*<br>Say on Pay type of executive compensation programs can effectively link pay and performance and provide competitive compensation opportunities. Say on Pay type plans should state the amount of compensation at risk and the amount of equity-based compensation linked to the company's performance and include adequate disclosure about the overall compensation structure. Say on Pay type plans should not include significant compensation guarantees and/or compensation that is not sufficiently linked to performance.

*Recoupment Provisions (Clawbacks)*<br>Executive compensation programs should be clearly tied to performance and include the following:

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■ Detailed bonus recoupment policies to prevent executives from retaining performance-based awards that were not truly earned.

■ Clawback triggers in the event of a restatement of financial results or similar revision of performance indicators upon which bonuses were based.

■ Policies allowing board reviews of performance-related bonuses and awards paid to senior executives during the period covered by a restatement that allows the company to recoup such bonuses if performance goals were not actually achieved.

■ Clawback policies that limit discretion and ensure the integrity of such policies.

*Executive Severance Agreement (Golden Parachutes)*<br>Executive compensation should be designed as an incentive for continued employment and include reasonable severance benefits, and the executive's termination should be limited to three times salary and bonus, referred to as double-trigger plans.

Guaranteed severance benefits that exceed three times salary and bonus should be disclosed and should require shareholder approval.

Barrow Hanley does not support guaranteed severance benefits without a change in control or arrangements that does not require the executive's termination, referred to as single-trigger plans.

*Employee Stock Purchase Plans*<br>Employee stock purchase plans are effective ways to increase employees' ownership in the company's stock. Such plans should not allow for purchases below 85% of current market value and should limit shares reserved under the plan to 5% or less of the outstanding shares of the company.

Corporate Structure and Shareholder Rights

Barrow Hanley supports market-based corporate control functions without undue interference from artificial barriers. Shareholders' rights are a fundamental privilege of equity ownership and should be proportional to economic ownership. Appropriate limits include a shareholder's ability to act by corporate charter, bylaw provisions, or adoption of certain takeover provisions.

*Shareholder Right Plans (Poison Pills)*<br>Poison pill plans can erode shareholder value by limiting a potential acquirer's ability to purchase a controlling interest in the company without the approval of its board of directors, and/or can serve to entrench incumbent management and directors.

Shareholder rights plans should be designed to enables the board to take appropriate to defensive actions, and should require the following:

■ Shareholder approval within a year of its adoption.

■ Timing limited to 3-5 years.

■ Requirement for shareholder approval for renewal.

■ Reviews by a committee of independent directors at least every three years, referred to as TIDE provisions.

■ Permitted bid or qualified offer features requiring shareholder votes under specific conditions referred to as chewable pills.

■ Reasonable ownership triggers of 15-20%.

■ Highly independent, non-classified boards.

Shareholder rights plans should avoid the following:

■ Long-term defensive features of 5 or more years.

■ Automatic renewals without shareholder approval.

■ Ownership triggers of less than 15%.

■ Classified boards.

■ Boards with limited independence.

*Political Contributions and Lobbying*<br>Barrow Hanley evaluates an issuer's policy and procedures governing political spending and lobbying. Proposals demonstrating insufficient or absent policies and disclosure are opposed.

*An Increase in Authorized Shares*<br>Proposals for increases in authorized share amounts should not expose shareholders to excessive dilution and should be limited to increases of up to 20% of the current share authorization.

*Cumulative Voting*<br>Cumulative voting should be proportional to the shareholders' economic investment in the company.

*Supermajority Vote Requirements*<br>Shareholders' rights to approve or reject proposals should be based on a simple majority.

*Confidential Voting*<br>Shareholder voting should be conducted in a confidential manner.

*Dual Classes of Stock*<br>Barrow Hanley opposes dual-class capitalization structures that provide disparate voting rights to shareholders with similar economic interests. Proposals to create separate share classes with different voting rights are opposed. Proposals to dissolve separate share classes are approved.

**Shareholder Proposals and ESG Issues**

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Proposals relating to ESG issues are usually initiated by shareholders seeking disclosure about certain business practices or amendments to certain policies. Barrow Hanley's Policy and Guidelines are designed to provide a framework for assessing the financial materiality of corporate governance, environmental, and social issues. Barrow Hanley supports proposals that improve transparency on issues that can be clearly tied to sustainable resource development, environmental compliance, and workplace safety.

Barrow Hanley subscribes to third party ESG research and scoring databases, including MSCI, Sustainalytics, and IFRS as a tool for rating the financial materiality of ESG factors to support our internal research. Some investments may have a low corporate ranking based on a third party's profile. Investment in low ranked companies is based on our belief that shareholder engagement is the best way to engage with management and use our influence toward sustainable improvements. Our fundamental analysis identifies areas and issues for engagement with management to improve policies and disclosure.

Barrow Hanley evaluates climate risk and disclosure standards for the companies and industries most exposed to climate change and engages with management and boards to understand the company's risks and opportunities and where necessary, seeks additional disclosure.

Barrow Hanley considers issues related to human capital to be a company's most significant risks and opportunities. Boards should disclose and communicate plans to instill inclusive, attractive, and high-retention environments in the company. Barrow Hanley supports inclusive working environments and diversity among employees and supports shareholder proposals that contain comprehensive equal opportunity and anti-discrimination provisions, and reporting on gender-based discrepancies in compensation.

**Voting of Non-U.S./Foreign Shares**

Although corporate governance standards, disclosure requirements, and voting mechanisms vary greatly among the markets outside the U.S., proposals are evaluated under these Guidelines and consideration of the local market's standards and best practices.

**Exceptions**

Reasonable and limited exceptions to these Guidelines are permitted based on the facts, circumstances, and best economic interests of our clients. Exceptions are documented and retained in the Firm's proxy voting records.

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**BRANDYWINE GLOBAL INVESTMENT MANAGEMENT, LLC**<br>**PROXY VOTING**

**I. Client Accounts for which Brandywine Global Votes Proxies**

Brandywine Global shall vote proxies for each client account for which the client:

**A.** has specifically authorized Brandywine Global to vote proxies in the applicable investment management agreement or other written instrument; or

**B.** without specifically authorizing Brandywine Global to vote proxies, has granted general investment discretion to Brandywine Global in the applicable investment management agreement.

Also, Brandywine Global shall vote proxies for any employee benefit plan client subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), unless the investment management agreement specifically reserves the responsibility for voting proxies to the plan trustees or other named fiduciary.

At or prior to inception of each client account, Brandywine Global shall determine whether it has proxy voting authority over such account.

**II. General Principles**

In exercising discretion to vote proxies for securities held in client accounts, Brandywine Global is guided by general fiduciary principles. Brandywine Global's goal in voting proxies is to act prudently and solely in the best economic interest of its clients for which it is voting proxies. In furtherance of such goal, Brandywine Global will vote proxies in a manner that Brandywine Global believes will be consistent with efforts to maximize shareholder values.

Brandywine Global does not exercise its proxy voting discretion to further policy, political or other issues that have no connection to enhancing the economic value of the client's investment, but will consider environmental, social, and governance issues that may impact the value of the investment, either through introducing opportunity or by creating risk to the value.<br>

**III. How Brandywine Global Votes Proxies**

Appendix A sets forth general guidelines considered by Brandywine Global and its portfolio management teams in voting common proxy items.

In the case of a proxy issue for which there is a stated position set forth in Appendix A, Brandywine Global generally votes in accordance with the stated position. In the case of a proxy issue for which there is a list of factors set forth in Appendix A that Brandywine Global considers in voting on such issue, Brandywine Global considers those factors and votes on a case-by-case basis in accordance with the general principles described in Section II. In the case of a proxy issue for which there is no stated position or list of factors set forth in Appendix A that Brandywine Global considers in voting on such issue, Brandywine Global votes on a case-by-case basis in accordance with the general principles described in Section II.

The general guidelines set forth in Appendix A are not binding on Brandywine Global and its portfolio management teams, but rather are intended to provide an analytical framework for the review and assessment of common proxy issues. Such guidelines can always be superseded by a portfolio management team based on the team's assessment of the proxy issue and determination that a vote that is contrary to such general guidelines is in the best economic interests of the client accounts for which the team is responsible. Different portfolio management teams may vote differently on the same issue based on their respective assessments of the proxy issue and determinations as to what is in the best economic interests of client accounts for which they are responsible.

In the case of Taft-Hartley clients, Brandywine Global will comply with a client direction to vote proxies in accordance with Glass Lewis & Co. PVS Proxy Voting Guidelines, which Glass Lewis & Co. represents to be fully consistent with AFL-CIO guidelines.

**IV. Use of an Independent Proxy Service Firm**

Brandywine Global may contract with an independent proxy service firm to provide Brandywine Global with information and/or recommendations with regard to proxy votes. Any such information and/or recommendations will be made available to Brandywine Global's portfolio management teams, but Brandywine Global and its portfolio management teams are not required to follow any recommendation furnished by such service provider. The use of an independent proxy service firm to provide proxy voting information and/or recommendations does not relieve Brandywine Global of its responsibility for any proxy votes.

With respect to any independent proxy service firm engaged by Brandywine Global to provide Brandywine Global with information and/or recommendations with regard to proxy votes, Brandywine Global's Proxy Administrator shall periodically review and assess such firm's policies, procedures and practices including those with respect to the disclosure and handling of conflicts of interest.

<br>**V. Conflict of Interest Procedures**

In furtherance of Brandywine Global's goal to vote proxies in the best interests of clients, Brandywine Global follows procedures designed to identify and address material conflicts that may arise between the interests of Brandywine Global and its employees and those of its clients before voting proxies on behalf of such clients. Conflicts of interest may arise both at the firm level and as a result of an employee's personal relationships or circumstances.

**A. Procedures for Identifying Conflicts of Interest**

Brandywine Global relies on the procedures set forth below to seek to identify conflicts of interest with respect to proxy voting.

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1. Brandywine Global's Compliance Department annually requires each Brandywine Global employee to complete a questionnaire designed to elicit information that may reveal potential conflicts between the employee's interests and those of Brandywine Global clients.

2. Brandywine Global treats client and wrap sponsor relationships as creating a material conflict of interest for Brandywine Global in voting proxies with respect to securities issued by such client or its known affiliates.

3. As a general matter, Brandywine Global takes the position that relationships between a non-Brandywine Global Franklin Resources business unit and an issuer (e.g., investment management relationship between an issuer and a non-Brandywine Global Franklin Resources-owned asset manager) do not present a conflict of interest for Brandywine Global in voting proxies with respect to such issuer because Brandywine Global operates as an independent business unit from other Franklin Resources business units and because of the existence of informational barriers between Brandywine Global and certain other Franklin Resources business units.

**B. Procedures for Assessing Materiality of Conflicts of Interest**

1. All potential conflicts of interest identified pursuant to the procedures outlined in Section V.A.1. must be brought to the attention of the Investment Committee for resolution.

2. The Investment Committee shall determine whether a conflict of interest is material. A conflict of interest shall be considered material to the extent that it is determined that such conflict is likely to influence, or appear to influence, Brandywine Global's decision-making in voting the proxy. All materiality determinations will be based on an assessment of the particular facts and circumstances. A written record of all materiality determinations made by the Investment Committee shall be maintained.

3. If it is determined by the Investment Committee that a conflict of interest is not material, Brandywine Global may vote proxies following normal processes notwithstanding the existence of the conflict.

**C. Procedures for Addressing Material Conflicts of Interest**

1. With the exception of those material conflicts identified in A.2. which will be voted in accordance with paragraph C.1.b., if it is determined by the Investment Committee that a conflict of interest is material, the Investment Committee shall determine an appropriate method or combination of methods to resolve such conflict of interest before the proxy affected by the conflict of interest is voted by Brandywine Global. Such determination shall be based on the particular facts and circumstances, including the importance of the proxy issue, the nature of the conflict of interest, etc. Such methods may include:

a. confirming that the proxy will be voted in accordance with a stated position or positions set forth in Appendix A;

b. confirming that the proxy will be voted in accordance with the recommendations of an independent proxy service firm retained by Brandywine Global;

c. in the case of a conflict of interest resulting from a particular employee's personal relationships or circumstances, removing such employee from the decision-making process with respect to such proxy vote;

d. disclosing the conflict to clients and obtaining their consent before voting;

e. suggesting to clients that they engage another party to vote the proxy on their behalf; or

f. such other method as is deemed appropriate given the particular facts and circumstances, including the importance of the proxy issue, the nature of the conflict of interest, etc.

2. A written record of the method used to resolve a material conflict of interest shall be maintained.

**VI. Other Considerations**

In certain situations, Brandywine Global may decide not to vote proxies on behalf of a client account for which it has discretionary voting authority because Brandywine Global believes that the expected benefit to the client account of voting shares is outweighed by countervailing considerations (excluding the existence of a potential conflict of interest). Examples of situations in which Brandywine Global may determine not to vote proxies are set forth below.

**A. Share Blocking**

Proxy voting in certain countries requires "share blocking." This means that shareholders wishing to vote their proxies must deposit their shares shortly before the date of the meeting (e.g. one week) with a designated depositary. During the blocking period, shares that will be voted at the meeting cannot be sold until the meeting has taken place and the shares have been returned to client accounts by the designated depositary. In deciding whether to vote shares subject to share blocking, Brandywine Global will consider and weigh, based on the particular facts and circumstances, the expected benefit to client accounts of voting in relation to the potential detriment to clients of not being able to sell such shares during the applicable period.

**B. Securities on Loan**

Certain clients of Brandywine Global, such as an institutional client or a registered investment company for which Brandywine Global acts as a sub-adviser, may engage in securities lending with respect to the securities in their accounts. Brandywine Global typically does not direct or oversee such securities lending activities. To the extent feasible and practical under the circumstances, Brandywine Global may request that the client recall shares that are on loan so that such shares can be voted if Brandywine Global believes that the expected benefit to the client of voting such shares outweighs the detriment to the client of recalling such shares (e.g., foregone income). The ability to timely recall shares for proxy

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voting purposes typically is not entirely within the control of Brandywine Global and requires the cooperation of the client and its other service providers. Under certain circumstances, the recall of shares in time for such shares to be voted may not be possible due to applicable proxy voting record dates and administrative considerations.

**VII. Proxy Voting-Related Disclosures**

**A. Proxy Voting Independence and Intent**

Brandywine Global exercises its proxy voting authority independently of other Franklin Resources-owned asset managers. Brandywine Global and its employees shall not consult with or enter into any formal or informal agreements with Brandywine Global's ultimate parent, Franklin Resources, Inc., any other Franklin Resources business unit, or any of their respective officers, directors or employees, regarding the voting of any securities by Brandywine Global on behalf of its clients.

Brandywine Global and its employees must not disclose to any person outside of Brandywine Global, including without limitation another investment management firm (affiliated or unaffiliated) or the issuer of securities that are the subject of the proxy vote, how Brandywine Global intends to vote a proxy without prior approval from Brandywine Global's Chief Compliance Officer.

If a Brandywine Global employee receives a request to disclose Brandywine Global's proxy voting intentions to, or is otherwise contacted by, another person outside of Brandywine Global (including an employee of another Franklin Resources business unit) in connection with an upcoming proxy voting matter, the employee should immediately notify Brandywine Global's Chief Compliance Officer.

If a Brandywine Global portfolio manager wants to take a public stance with regards to a proxy, the portfolio manager must consult with and obtain the approval of Brandywine Global's Chief Compliance Officer before making or issuing a public statement.

**B. Disclosure of Proxy Votes and Policy and Procedures**

Upon Brandywine Global's receipt of any oral or written client request for information on how Brandywine Global voted proxies for that client's account, Brandywine Global must promptly provide the client with such requested information in writing.

Brandywine Global must deliver to each client, for which it has proxy voting authority, no later than the time it accepts such authority, a written summary of this Proxy Voting policy and procedures. This summary must include information on how clients may obtain information about how Brandywine Global has voted proxies for their accounts and must also state that a copy of Brandywine Global's Proxy Voting policy and procedures is available upon request.

Brandywine Global must create and maintain a record of each written client request for proxy voting information. Such record must be created promptly after receipt of the request and must include the date the request was received, the content of the request, and the date of Brandywine Global's response. Brandywine Global must also maintain copies of written client requests and copies of all responses to such requests.

**C. Delegation of Duties**

Brandywine Global may delegate to non-investment personnel the responsibility to vote proxies in accordance with the guidelines set forth in Appendix A. Such delegation of duties will only be made to employees deemed to be reasonably capable of performing this function in a satisfactory manner.

**VIII. Shareholder Activism and Certain Non-Proxy Voting Matters**

In no event shall Brandywine Global's possession of proxy voting authority obligate it to undertake any shareholder activism on behalf of a client. Brandywine Global may undertake such activism in connection with a proxy or otherwise if and to the extent that Brandywine Global determines that doing so is consistent with applicable general fiduciary principles, provided Brandywine Global has first obtained its Chief Compliance Officer's approval of the proposed activism.

Absent a specific contrary written agreement with a client, Brandywine Global does not (1) render any advice to, or take any action on behalf of, clients with respect to any legal proceedings, including bankruptcies and shareholder litigation, to which any securities or other investments held in client account, or the issuers thereof, become subject, or (2) initiate or pursue legal proceedings, including without limitation shareholder litigation, on behalf of clients with respect to transactions or securities or other investments held in client accounts, or the issuers thereof. Except as otherwise agreed to in writing with a particular client, the right to take any action with respect to any legal proceeding, including without limitation bankruptcies and shareholder litigation, and the right to initiate or pursue any legal proceedings, including without limitation shareholder litigation, with respect to transactions or securities or other investments held in a client account is expressly reserved to the client.

**IX. Recordkeeping**

In addition to all other records required by this Policy and Procedures, Brandywine Global shall maintain the following records relating to proxy voting:

**A.** a copy of this Policy and Procedures, including any and all amendments that may be adopted;

**B.** a copy of each proxy statement that Brandywine Global receives regarding client securities;

**C.** a record of each vote cast by Brandywine Global on behalf of a client;

**D.** documentation relating to the identification and resolution of conflicts of interest;

**F.** a copy of each written client request for information on how Brandywine Global voted proxies on behalf of the client, and a copy of any written response by Brandywine Global to any (written or oral) client request for information on how Brandywine Global voted proxies on behalf of the requesting client; and

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**G.** records showing whether or not Brandywine Global has proxy voting authority for each client account.

All required records shall be maintained and preserved in an easily accessible place for a period of not less than six years from the end of the fiscal year during which the last entry was made on such record, the first two years in an appropriate office of Brandywine Global. Brandywine Global also shall maintain a copy of any proxy voting policies and procedures that were in effect at any time within the last five years.

To the extent that Brandywine Global is authorized to vote proxies for a United States registered investment company, Brandywine Global shall maintain such records as are necessary to allow such fund to comply with its recordkeeping, reporting and disclosure obligations under applicable laws, rules and regulations.

In lieu of keeping copies of proxy statements, Brandywine Global may rely on proxy statements filed on the EDGAR system as well as on third party records of proxy statements if the third party provides an undertaking to provide copies of such proxy statements promptly upon request. Brandywine Global may rely on a third party to make and retain, on Brandywine Global's behalf, records of votes cast by Brandywine Global on behalf of clients if the third party provides an undertaking to provide a copy of such records promptly upon request.

**Appendix A**<br>**Proxy Voting Guidelines**

**Brandywine Global Diversified Portfolio Management Team**<br>**Proxy Voting Guidelines**

Below are proxy voting guidelines that Brandywine Global's Diversified Portfolio Management Team generally follows when voting proxies for securities held in client accounts. The Team may decide to deviate from these guidelines with respect to any one or more particular proxy votes, subject in all cases to the Team's duty to act solely in the best interest of their client accounts holding the applicable security.

I. Compensation

A. We vote for non-employee director stock options, unless we consider the number of shares available for issue excessive. We may consider current and past stock option grants in determining whether the cumulative dilution is excessive.

B. We vote for employee stock purchase programs. Normally, these programs allow all employees to purchase company stock at a price equal to 85% of current market price. Usually, we will still vote for these employee programs even if we vote against a non-employee or executive-only stock purchase program because of excessive dilution.

C. We vote for compensation plans that are tied to the company achieving set profitability hurdles. Plans are structured this way to comply with IRS laws allowing for deductibility of management compensation exceeding $1 million.

D. We vote against attempts to re-price options. Also, we vote against the re-election of incumbent Directors in the event of such a re-pricing proposal.

E. We vote against attempts to increase incentive stock options available for issuance when the shares underlying such options would exceed 10% of the company's outstanding shares.

F. We vote against stock option plans allowing for stock options with exercise prices less than 100% of the stock's price at the time of the option grant.

G. We vote against stock option plans allowing for very large allocations to a single individual because we generally believe that stock option plans should provide for widespread employee participation.

H. We vote against proposals to authorize or approve loans to company executives or Board members for personal reasons or for the purpose of enabling such persons to purchase company shares.

II. Governance

A. We vote for proposals to separate the Chief Executive Officer and Chairman of the Board positions.

B. We vote against "catch-all" authorizations permitting proxy holders to conduct unspecified business that arises during shareholder meetings.

III. Anti-Takeover

We vote against anti-takeover measures, including without limitation:

A. Staggered Boards of Directors (for example, where 1/3 of a company's Board is elected each year rather than the entire Board each year).

B. Super-Majority Voting Measures (for example, requiring a greater than 50% vote to approve takeovers or make certain changes).

C. Poison Pills, which are special stock rights that go into effect upon a takeover offer or an outsider acquiring more than a specified percentage of a company's outstanding shares.

IV. Capital Structure

We vote against attempts to increase authorized shares by more than twice the number of outstanding shares unless there is a specific purpose for such increase given, such as a pending stock split or a corporate purchase using shares, and we determine that increasing authorized shares for such purpose is appropriate. Generally, we believe it is better to use shares to pay for acquisitions when they are trading at higher values than when they are trading at or near historical lows. The dilution effect is less.

V. Business Management

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We generally prefer not to dictate to companies on matters of business strategy, believing that as long as the company is operating responsibly it is management's role to make these decisions. Business strategy includes management of environmental and social practices, as they have the potential to pose significant financial, legal, and reputational risk if not appropriately governed. In cases where we feel management has not taken sufficient efforts to address material environmental or social risk, we may choose to support shareholder proposals aimed at enhancing shareholder value or risk mitigation in alignment with our fiduciary principles.

**Brandywine Global Fundamental Equities Portfolio Management Team**<br>**Proxy Voting Guidelines**

Below are proxy voting guidelines that Brandywine Global's Fundamental Equities Portfolio Management Team generally follows when voting proxies for securities held in client accounts. The Team may decide to deviate from these guidelines with respect to any one or more particular proxy votes, subject in all cases to the Team's duty to act solely in the best interest of their client accounts holding the applicable security.

<br>I. Compensation

A. We vote for non-employee director stock options, unless we consider the number of shares available for issue excessive.

B. We vote for employee stock purchase programs. Normally, these programs allow all employees to purchase company stock at a price equal to 85% of current market price. Usually, we will still vote for these employee programs even if we vote against a non-employee or executive-only stock purchase program because of excessive dilution.

C. We vote for measures that give shareholders a vote on executive compensation.

D. We vote for compensation plans that are tied to the company achieving set profitability hurdles. This is to comply with IRS laws to allow for deductibility of management compensation exceeding $1 million.

E. We vote against any attempt to re-price options. Also, we vote against the re- election of incumbent Directors in the event of such a re-pricing proposal.

F. We vote against attempts to increase incentive stock options when we determine they are excessive, either in total or for one individual.

G. We vote against stock option plans allowing for stock options with exercise prices less than 100% of the stock's price at the time of the option grant.

II. Governance

A. We vote for cumulative shareholder voting.

B. We vote against "catch-all" authorizations permitting proxy holders to conduct unspecified business that arises during shareholder meetings.

C. We vote against related-party transactions involving directors, senior members of company management or other company insiders.

III. Anti-Takeover

We vote against anti-takeover measures:

A. Staggered Boards of Directors (for example, where 1/3 of a company's Board is elected each year rather than the entire Board each year).

B. Super-Majority Voting Measures (for example, requiring a greater than 50% vote to approve takeovers or make certain changes).

C. Poison Pills, which are special stock rights that go into effect upon a takeover offer or an outsider acquiring more than a specified percentage of a company's outstanding shares.

D. Change-of-Control Contracts, which grant benefits to company personnel (typically members of senior company management) in the event the company is acquired or is otherwise subject to a change of control.

IV. Capital Structure

We vote against attempts to increase authorized shares by more than twice the number of outstanding shares unless there is a specific purpose for such increase given, such as a pending stock split or a corporate purchase using shares, and we determine that increasing authorized shares for such purpose is appropriate. Generally, we believe it is better to use shares to pay for acquisitions when they are trading at higher values than when they are trading at or near historical lows. The dilution effect is less.

V. Business Management

We generally prefer not to dictate to companies on matters of business strategy, believing that as long as the company is operating responsibly, it is management's role to make these decisions. Business strategy includes management of environmental and social practices, as they have the potential to pose significant financial, legal, and reputational risk if not appropriately governed. In cases where we feel management has not taken sufficient efforts to address material environmental or social risk, we may choose to support shareholder proposals aimed at enhancing shareholder value or risk mitigation in alignment with our fiduciary principles

**Brandywine Global Fixed Income Portfolio Management Team**<br>**Proxy Voting Guidelines**

Below are proxy voting guidelines that Brandywine Global Fixed Income Portfolio Management Team generally follows when voting proxies for securities held in client accounts. The Team may decide to deviate from these guidelines with respect to any one or more particular proxy votes, subject in all cases to the Team's duty to act solely in the best interest of their client accounts holding the applicable security.

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I. Compensation

A. We vote for non-employee director stock options, unless we consider the number of shares available for issue excessive.

B. We vote for employee stock purchase programs. Normally, these programs allow all employees to purchase company stock at a price equal to 85% of current market price. Usually, we will still vote for these employee programs even if we vote against a non-employee or executive-only stock purchase program because of excessive dilution.

C. We vote for measures that give shareholders a vote on executive compensation.

D. We vote for compensation plans that are tied to the company achieving set profitability hurdles. This is to comply with IRS laws to allow for deductibility of management compensation exceeding $1 million.

E. We vote against any attempt to re-price options. Also, we vote against the re- election of incumbent Directors in the event of such a re-pricing proposal.

F. We vote against attempts to increase incentive stock options when we determine they are excessive, either in total or for one individual.

G. We vote against stock option plans allowing for stock options with exercise prices less than 100% of the stock's price at the time of the option grant.

II. Governance

A. We vote for cumulative shareholder voting.

B. We vote against "catch-all" authorizations permitting proxy holders to conduct unspecified business that arises during shareholder meetings.

III. Anti-Takeover

We vote against anti-takeover measures, including without limitation:

A. Staggered Boards of Directors (for example, where 1/3 of a company's Board is elected each year rather than the entire Board each year).

B. Super-Majority Voting Measures (for example, requiring a greater than 50% vote to approve takeovers or make certain changes).

C. Poison Pills, which are special stock rights that go into effect upon a takeover offer or an outsider acquiring more than a specified percentage of a company's outstanding shares.

IV. Capital Structure

We vote against attempts to increase authorized shares by more than twice the number of outstanding shares unless there is a specific purpose for such increase given, such as a pending stock split or a corporate purchase using shares, and we determine that increasing authorized shares for such purpose is appropriate. Generally, we believe it is better to use shares to pay for acquisitions when they are trading at higher values than when they are trading at or near historical lows. The dilution effect is less.

V. Business Management

We generally prefer not to dictate to companies on matters of business strategy, believing that as long as the company is operating responsibly it is management's role to make these decisions. Business strategy includes management of environmental and social practices, as they have the potential to pose significant financial, legal, and reputational risk if not appropriately governed. In cases where we feel management has not taken sufficient efforts to address material environmental or social risk, we may choose to support shareholder proposals aimed at enhancing shareholder value or risk mitigation in alignment with our fiduciary principles.

October 2016

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**HOTCHKIS & WILEY CAPITAL MANAGEMENT**<br>**PROXY VOTING POLICIES AND PROCEDURES**

**INTRODUCTION**

Our primary responsibility is to act as a fiduciary for our clients when voting proxies. We evaluate and vote each proposed proxy in a manner that encourages sustainable business practices which in turn maximizes long term shareholder value.

As part of our normal due diligence and monitoring of investments, we engage management, board members, or their representatives on material business issues including environmental, social, and governance ("ESG") matters. Each proxy to be voted is an opportunity to give company management and board members formal feedback on these important matters.

This document summarizes our stance on important issues that are commonly found on proxy ballots, though each vote is unique and there will be occasional exceptions to these guidelines. The purpose of our proxy guidelines is to ensure decision making is consistent with our responsibilities as a fiduciary.

**GENERAL APPROACH**

To the extent we are asked to vote a client's proxy, our investment analysts are given the final authority on how to vote a particular proposal as these analysts' understanding of the company make them the best person to apply our policy to a particular company's proxy ballot. To assist our analysts in their voting, we provide them with a report that compares the company's board of directors' recommendation against the H&W's proxy policy guideline recommendation and with third party proxy research (ISS sustainability and climate benchmarks) and third party ESG analysis (MSCI). Any deviation from the H&W policy recommendation requires a written statement from the analyst that summarizes their decision to deviate from policy.

There are instances such as unique client guidelines, regulatory requirements, share blocking, securities lending, or other technical limitations where we are unable to vote a particular proxy. In those instances where we do not have voting responsibility, we will forward our recommendation to such person our client designates.

**VOTING GUIDELINES**

These guidelines are divided into seven categories based on issues that frequently appear on proxy ballots.

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| **1** | Boards and Directors |

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| **2** | Environmental and Social Matters |

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| **3** | Auditors and Related Matters |

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| **4** | Shareholder Rights |

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| **5** | Capital and Restructuring |

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| **6** | Executive and Board Compensation |

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| **7** | Routine and Miscellaneous Matters |

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**1. Boards and Directors**

<u>Board Independence</u><br>We believe an independent board is crucial to protecting and serving the interests of public shareholders. We will generally withhold from or vote against any insiders when such insider sits on the audit, compensation, or nominating committees; or if independent directors comprise less than 50% of the board. Insiders are non-independent directors who may have inherent conflicts of interest that could prevent them from acting in the best interest of shareholders. Examples of non-independent directors include current and former company executives, persons with personal or professional relationships with the company and or its executives, and shareholders with large ownership positions.

<u>Board Composition</u>

We believe directors should attend meetings, be focused on the company, be responsive to shareholders, and be accountable for their decisions.

We will generally withhold from or vote against directors who attend less than 75% of meetings held during their tenure without just cause, sit on more than 5 public company boards (for CEOs only 2 outside boards), support measures that limit shareholder rights, or fail to act on shareholder proposals that passed with a majority of votes.

<u>Board Diversity</u><br>Boards should consider diversity when nominating new candidates, including gender, race, ethnicity, age, and professional experience. We encourage companies to have at least one female and one diverse (e.g., race, ethnicity) director or have a plan to do so.

<u>Board Size</u><br>We do not see a standard number of directors that is ideal for all companies. In general, we do not want to see board sizes changed without shareholder approval as changing board size can be abused in the context of a takeover battle.

<u>Board Tenure</u><br>In general, we will evaluate on a case-by-case basis whether the board is adequately refreshed with new talent and the proposed changes are not designed to reduce board independence.

<u>Classified Boards</u><br>We oppose classified boards because, among other things, it can make change in control more difficult to achieve and limit shareholder rights by reducing board accountability.

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<u>Cumulative Voting</u><br>Generally, we oppose cumulative voting because we believe that economic interests and voting interests should be aligned in most circumstances.

<u>Independent Board Chair</u><br>Generally, we favor a separate independent chair that is not filled by an insider. If the CEO is also the board chair, we require 2/3 of the board to be independent, a strong independent director (i.e., has formal input on board agendas and can call/preside over meetings of independent directors), and the CEO cannot serve on the nominating or compensation committees.

<u>Proxy Contests</u><br>Proxy contests are unusual events that require a case-by-case assessment of the unique facts and circumstances of each contested proxy campaign. Our policy is to defer to the judgement of our analysts on what best serves our clients' interests. Our analysts will evaluate the validity of the dissident's concerns, the likelihood that the dissident plan will improve shareholder value, the qualifications of the dissident's candidates, and management's historical record of creating or destroying shareholder value.

<u>Risk Oversight</u><br>Generally, companies should have established processes for managing material threats to its business, including ESG risks. We encourage transparency and vote to improve transparency to help facilitate appropriate risk oversight.

**2. Environmental and Social Matters**

We believe the oversight of ESG risks is an important responsibility of the board of directors and is a prerequisite for a well-managed company. Transparent disclosures are necessary to identify and evaluate environmental and social risks and opportunities. A lack of transparency will increase the likelihood that environmental and social risks are not being sufficiently managed/limited/mitigated. In general, we will engage companies with substandard disclosure to encourage them to provide adequate disclosure on E&S risks that typically align with Sustainability Accounting Standards Board (SASB) recommendations.

In general, we support proposals that encourage disclosure of risks provided they are not overly burdensome or disclose sensitive competitive information balanced against the materiality of the risk. We also consider whether the proposal is more effectively addressed through other means, like legislation or regulation.

*Environmental Issues*

<u>Climate Change and Green House Gas Emissions</u><br>Climate change has become an important factor in companies' long-term sustainability and opportunity. Understanding a company's strategy in managing these risks and opportunities is necessary in evaluating an investment's prospects. We support disclosures related to the risks and/or opportunities a company faces related to climate change, including information on how the company identifies and manages such risks/opportunities.

<u>Energy Efficiency</u><br>We generally support proposals requesting that a company report on its energy efficiency policies. Exceptions may include a request that is overly burdensome or provides unrealistic deadlines.

<u>Hydraulic Fracturing</u><br>We support proposals requesting greater disclosure of a company's hydraulic fracturing operations. This includes steps the company has taken, or plans to take, regarding mitigating and managing its environmental impact overall and surrounding communities.

<u>Renewable Energy</u><br>We support requests for reports on renewable energy accomplishments and future plans. Exceptions may include duplicative, irrelevant, or otherwise unreasonable requests.

*Social Issues*

<u>Equal Opportunity</u><br>We support proposals requesting disclosures of companies' policies and/or future initiatives related to diversity, including current data regarding the diversity of its workforce.

<u>Gender Identity and Sexual Orientation</u><br>We support proposals to revise diversity policies to prohibit discrimination based on sexual orientation and/or gender identity.

<u>Human Rights Proposals</u><br>We support proposals requesting disclosure related to labor and/or human rights policies.

<u>Political Activities</u>

We support the disclosure of a company's policies and procedures related to political contributions and lobbying activities.

<u>Sexual Harassment</u><br>We vote on a case-by-case basis regarding proposals seeking reports on company actions related to sexual harassment. We evaluate the company's current policies, oversight, and disclosures. We also consider the company's history and any related litigation or regulatory actions related to sexual harassment, and support proposals we believe will prevent such behavior when systemic issues are suspected.

**3. Auditors and Related Matters**

Generally, we will support the board's recommendation of auditors provided that the auditors are independent, non-audit fees are less than the sum of all audit and tax related fees, and there are no indications of fraud or misleading audit opinions.

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**4. Shareholder Rights**

We do not support proposals that limit shareholder rights. When a company chronically underperforms minimal expectations due to poor execution, poor strategic decisions, or poor capital allocation, there may arise the need of shareholders to effect change at the board level. Proposals that have the effect of entrenching boards or managements, thwarting the will of the majority of shareholders, or advantaging one class of shareholders at the expense of other shareholders will not be supported.

<u>Amendment to Charter/Articles/Bylaws</u><br>We do not support proposals that give the board exclusive authority to amend the bylaws. We believe amendments to charter/articles/bylaws should be approved by a vote of the majority of shareholders.

<u>One Share, One Vote</u><br>Generally, we do not support proposals to create dual class voting structures that give one set of shareholders super voting rights that are disproportionate from their economic interest in the company. Generally, we will support proposals to eliminate dual class structures.

<u>Poison Pills</u><br>In general, we do not support anti-takeover measures such as poison pills. Such actions can lead to outcomes that are not in shareholders' bests interests and impede maximum shareholder returns. It can also lead to management entrenchment. We may support poison pills intended to protect NOL assets.

<u>Proxy Access</u><br>Generally, we support proposals that enable shareholders with an ownership level of 3% for a period of three years or more, or an ownership level of 10% and a holding period of one year or more.

<u>Right to Act by Written Consent</u><br>We believe that shareholders should have the right to solicit votes by written consent provided in certain circumstances. These circumstances generally include but are not limited to situations where more than a narrow group of shareholders support the cause to avoid unnecessary resource waste, the proposal does not exclude minority shareholders to the benefit of a large/majority shareholder, and shareholders receive more than 50% support to set up action by written consent.

<u>Special Meetings</u>

Generally, we support proposals that enable shareholders to call a special meeting provided shareholders own at least 15% of the outstanding shares.

<u>Virtual Meetings</u><br>We believe shareholders should have the opportunity to participate in the annual and special meetings, as current communications technology such as video conferencing is broadly available to facilitate such interactions. This improves shareholders' ability to hear directly from management and the board of the directors, and to provide feedback as needed.

**5. Capital and Restructuring**

Events such as takeover offers, buyouts, mergers, asset purchases and sales, corporate restructuring, recapitalizations, dilutive equity issuance, or other major corporate events are considered by our analysts on a case-by-case basis. Our policy is to vote for transactions that maximize the long-term risk adjusted return to shareholders considering management's historical record of creating shareholder value, the likelihood of success, and the risk of not supporting the proposal.

<u>Dual Class Shares</u><br>We do not support dual class shares unless the economic and voting interests are equal.

<u>Issuance of Common Stock</u><br>We will consider the issuance of additional shares in light of the stated purpose, the magnitude of the increase, the company's historical shareholder value creation, and historical use of shares. We are less likely to support issuance when discounts or re-pricing of options has been an issue in the past.

**6. Executive and Board Compensation**

We expect the board of directors to design, implement, and monitor pay practices that promote pay-for-performance, alignment of interest with long-term shareholder value creation, retention and attraction of key employees. We will evaluate executive compensation in light of historical value creation, peer group pay practices, and our view on management's stewardship of the company.

We expect the board of directors to maintain an independent and effective compensation committee that has members with the appropriate skills, knowledge, experience, and ability to access third-party advice.

We expect the board of directors to provide shareholders with clear and understandable compensation disclosures that enable shareholders to evaluate the effectiveness and fairness of executive pay packages.

And finally, we expect the board of directors' own compensation to be reasonable and not set at a level that undermines their independence from management.

<u>Golden Parachutes</u><br>Golden parachutes can serve as encouragement to management to consider transactions that benefit shareholder; however, substantial payouts may present a conflict of interest where management is incentivized to support a suboptimal deal. We view cash severance greater than 3x base salary and bonus to be excessive unless approved by a majority of shareholders in a say-on-pay advisory vote.

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<u>Incentive Options and Repricing</u><br>We generally support long-term incentive programs tied to pay-for-performance. In general, we believe 50% or more of top executive pay should be tied to long-term performance goals and that those goals should be tied to shareholder value creation metrics. We do not support plans that reset when management fails to attain goals or require more than 10% of outstanding shares to be issued. In general, we do not support the exchange or repricing of options.

<u>Say-on-Pay</u><br>We believe annual say-on-pay votes are an effective mechanism to provide feedback to the board on executive pay and performance. We support non-binding proposals that are worded in a manner such that the actual implementation of the plan is not restricted. We will vote against plans where there is a serious misalignment of CEO pay and performance or the company maintains problematic pay practices. We will withhold votes from members of the compensation committee if there is no say-on-pay on the ballot, the board fails to respond to a previous say-on-pay proposal that received less than 70% support, the company has implemented problematic pay practices such as repricing options or its pay plans are egregious.

**7. Routine and Miscellaneous Matters**

We generally support routine board proposals such as updating bylaws (provided they are of a housekeeping nature), change of the corporate name or change of the time or location of the annual meeting.

<u>Adjournment of Meeting</u><br>We do not support proposals that give management the authority to adjourn a special meeting absent compelling reasons to support the proposal.

<u>Amend Quorum Requirements</u> 

We do not support proposals to reduce quorum requirements for shareholder meetings without support from a majority of the shares outstanding without compelling justification.

<u>Other Business</u><br>We do not support proposals on matters where we have not been provided sufficient opportunity to review the matters at hand.

**ONGOING REVIEW & RESPONSIBILITIES**

Investment analysts are responsible for voting proxies following a thorough review of the proposals and guided by our internal proxy policy. The analysts draw from a variety of sources during their proprietary research process, which informs the proxy vote decision. These sources include meetings with senior management and/or board members, other industry experts/contacts, and many other means. To support the proxy voting effort, Hotchkis & Wiley has engaged Institutional Shareholder Services ("ISS") for proxy research and proxy voting administration to help facilitate our process.

Hotchkis & Wiley also has a Proxy Oversight Committee consisting of the Chief Operating Officer, Chief Compliance Officer, and Managing Director of Portfolio Services. This group oversees H&W's proxy voting policies and procedures by providing an administrative framework to facilitate and monitor the exercise of such proxy voting and to fulfill the obligations of reporting and recordkeeping under the federal securities laws. This team is responsible for reviewing the policy annually and solicits feedback from investment team members to help inform any material enhancements.

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**LAZARD ASSET MANAGEMENT LLC**<br>**PROXY VOTING POLICY**

**A. Introduction**

Lazard Asset Management LLC and its investment advisory subsidiaries ("Lazard" or the "firm") provide investment management services for client accounts, including proxy voting services. As a fiduciary, Lazard is obligated to vote proxies in the best interests of its clients over the long-term. Lazard has developed a structure that is designed to ensure that proxy voting is conducted in an appropriate manner, consistent with clients' best interests, and within the framework of this Proxy Voting Policy (the "Policy").

Lazard manages assets for a variety of clients worldwide, including institutions, financial intermediaries, sovereign wealth funds, and private clients. To the extent that proxy voting authority is delegated to Lazard, Lazard's general policy is to vote proxies on a given issue in the same manner for all of its clients. This Policy is based on the view that Lazard, in its role as investment adviser, must vote proxies based on what it believes (i) will maximize sustainable shareholder value as a long-term investor; (ii) is in the best interest of its clients; and (iii) the votes that it casts are intended in good faith to accomplish those objectives.

This Policy recognizes that there may be times when meeting agendas or proposals may create the appearance of a material conflict of interest for Lazard. Lazard will look to alleviate the potential conflict by voting according to pre-approved guidelines. In conflict situations where a pre-approved guideline is to vote case-by-case, Lazard will vote according to the recommendation of one of the proxy voting services Lazard retains to provide independent analysis. More information on how Lazard handles material conflicts of interest in proxy voting is provided in Section F of this Policy.

**B. Responsibility to Vote Proxies**

Generally, Lazard is willing to accept delegation from its clients to vote proxies. Lazard does not delegate that authority to any other person or entity, but retains complete authority for voting all proxies on behalf of its clients. Not all clients delegate proxy-voting authority to Lazard, however, and Lazard will not vote proxies, or provide advice to clients on how to vote proxies, in the absence of a specific delegation of authority or an obligation under applicable law. For example, securities that are held in an investment advisory account for which Lazard exercises no investment discretion are not voted by Lazard, nor are shares that a client has authorized their custodian bank to use in a stock loan program which passes voting rights to the party with possession of the shares.

**C. General Administration**

**1. Overview and Governance**

Lazard's proxy voting process is administered by members of its Operations Department ("the Proxy Administration Team"). Oversight of the process is provided by Lazard's Legal & Compliance Department and by a Proxy Committee comprised of senior investment professionals, members of the Legal & Compliance Department, the firm's Co-Heads of Sustainable Investment & Environmental, Social and Corporate Governance ("ESG") and other personnel. The Proxy Committee meets regularly, generally on a quarterly basis, to review this Policy and other matters relating to the firm's proxy voting functions. Meetings may be convened more frequently (for example, to discuss a specific proxy agenda or proposal) as needed. A representative of Lazard's Legal & Compliance Department will participate in all Proxy Committee meetings.

A quorum for the conduct of any meeting will be met if a majority of the Proxy Committee's members are in attendance by phone or in person. Decisions of the Proxy Committee will be made by consensus and minutes of each meeting will be taken and maintained by the Legal & Compliance Department. The Proxy Committee may, upon consultation with Lazard's Chief Compliance Officer, General Counsel or his/her designee, take any action that it believes to be necessary or appropriate to carry out the purposes of the Policy. The Chief Compliance Officer, General Counsel or his/her designee, is responsible for updating this Policy, interpreting this Policy, and may act on behalf of the Proxy Committee in circumstances where a meeting of the members is not feasible.

**2. Role of Third Parties**

Lazard currently subscribes to advisory and other proxy voting services provided by Institutional Shareholder Services Inc. ("ISS") and Glass, Lewis & Co. ("Glass Lewis"). These proxy advisory services provide independent analysis and recommendations regarding various companies' proxy proposals. While this research serves to help improve our understanding of the issues surrounding a company's proxy proposals, Lazard's Portfolio Manager/Analysts and Research Analysts (collectively, "Portfolio Management") are responsible for providing the vote recommendation for a given proposal except when the Conflicts of Interest policy applies (see Section F).

ISS provides additional proxy-related administrative services to Lazard. ISS receives on Lazard's behalf all proxy information sent by custodians that hold securities on behalf of Lazard's clients and sponsored funds. ISS posts all relevant information regarding the proxy on its password-protected website for Lazard to review, including meeting dates, all agendas and ISS' analysis. The Proxy Administration Team reviews this information on a daily basis and regularly communicates with representatives of ISS to ensure that all agendas are considered and proxies are voted on a timely basis. ISS also provides Lazard with vote execution, recordkeeping and reporting support services. Members of the Proxy Committee, along with members of the Legal & Compliance Team, conducts periodic due diligence of ISS and Glass Lewis consisting of an annual questionnaire and, as appropriate, on site visits.

The Proxy Committee believes that the Policy is consistent with the firm's Corporate Governance Principals and ESG and Climate Change Policies at https://www.lazardassetmanagement.com/about/esg.

**3. Voting Process**

The Proxy Committee has approved proxy voting guidelines applicable to specific types of common proxy proposals (the "Approved Guidelines"). As discussed more fully below in Section D of this Policy, depending on the proposal, an Approved Guideline may provide that Lazard should vote for or against the proposal, or that the proposal should be considered on a case-by-case basis.

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For each shareholder meeting the Proxy Administration Team provides Portfolio Management with the agenda and proposals, the Approved Guidelines, independent vote recommendations from Glass Lewis and ISS and supporting analyses for each proposal. Unless Portfolio Management disagrees with the Approved Guideline for a specific proposal, or where a potential material conflict of interest exists, the Proxy Administration Team will generally vote the proposal according to the Approved Guideline. In cases where Portfolio Management recommends a vote contrary to the Approved Guideline, a member of the Proxy Administration Team will contact a member of the Legal & Compliance Department advising the Proxy Committee. Such communication, which may be in the form of an e-mail, shall include: the name of the issuer, a description of the proposal, the Approved Guideline, any potential conflict of interest presented and the reason(s) Portfolio Management believes a proxy vote in this manner is in the best interest of clients In such cases, the Proxy Committee and the Legal & Compliance Department will review the proposal and make a determination.

Where the Approved Guideline for a particular type of proxy proposal is to vote on a case-by-case basis, Lazard believes that Portfolio Management is best able to evaluate the potential impact to shareholders resulting from a particular proposal. Similarly, with respect to certain Lazard strategies, as discussed more fully in Sections F and G below, the Proxy Administration Team will consult with Portfolio Management to determine when it would be appropriate to abstain from voting. The Proxy Administration Team seeks Portfolio Management's recommendation on how to vote all such proposals. The Proxy Administration Team may also consult with Lazard's Chief Compliance Officer, General Counsel or his/her designee, and may seek the final approval of the Proxy Committee regarding a recommendation by Portfolio Management.

As a global firm, we recognize that there are differing governance models adopted in various countries and that local laws and practices vary widely. Although the Approved Guidelines are intended to be applied uniformly world-wide, where appropriate, Lazard will consider regional/local law and guidance in applying the Policy.

**D. Specific Proxy Items**

Shareholders receive proxies involving many different proposals. Many proposals are routine in nature, such as a change in a company's name. Others are more complicated, such as items regarding corporate governance and shareholder rights, changes to capital structure, stock option plans and other executive compensation/ issues, election of directors, mergers and other significant transactions and social or political issues. Lazard's Approved Guidelines for certain common agenda items are outlined below. The Proxy Committee will also consider any other proposals presented and determine whether to implement a new Approved Guideline.

Certain strategy-specific considerations may result in Lazard voting proxies other than according to the Approved Guidelines, not voting shares at all, issuing standing instructions to ISS on how to vote certain proxy matters on behalf of Lazard, or taking other action where unique circumstances require special voting efforts or considerations. These considerations are discussed in more detail in Section G, below.

**1. Routine Items**

Lazard generally votes routine items as recommended by the issuer's management and board of directors, based on the view that management is generally in a better position to assess these matters. Lazard considers routine items to be those that do not change the structure, charter, bylaws, or operations of an issuer in any way that is material to long-term shareholder value. Routine items generally include:

■ issues relating to the timing or conduct of annual meetings;

■ provisionary financial budgets and strategy for the current year;

■ proposals that allow votes submitted for the first call of the shareholder meeting to be considered in the event of a second call;

■ proposals to receive or approve of variety of routine reports (Lazard will generally vote FOR the approval of financial statements and director and auditor reports unless there are concerns about the accounts presented or audit procedures used or the company is not responsive to shareholder questions about specific items that should be publicly disclosed); and

■ changes to a company's name.

**2. Amendments to Board Policy/Charter/Regulation:**

Proposals to amend a company's Articles of Association and other bylaws are commonly seen at shareholder meetings. Companies usually disclose what is being amended, or the amended bylaws, or both in their meeting circulars. Amendments are nearly always bundled together as a single voting resolution, and Lazard's general approach is to review these amendments on a case-by-case basis and to oppose article amendments as a whole when they include changes Lazard opposes. Lazard has Approved Guidelines generally to vote FOR bylaw amendments that are driven by regulatory changes and are technical in nature or meant to update company-specific information such as address and/or business scope. Lazard has Approved Guidelines generally to vote AGAINST bylaw amendments if

■ there is no disclosure on the proposed amendments or full text of the amended bylaw; or

■ the amendments include increase in the decision authority of what is considered "excessive" and the company fails to provide a compelling justification.

**3. Corporate Governance and Shareholder Rights**

Many proposals address issues related to corporate governance and shareholder rights. These items often relate to a board of directors and its committees, anti-takeover measures, and the conduct of the company's shareholder meetings.

a. Board of Directors and its Committees

Lazard votes in favor of provisions that it believes will increase the effectiveness of an issuer's board of directors.

**Lazard has Approved Guidelines generally to vote FOR the following:**

■ the establishment of an independent nominating committee, audit committee or compensation committee of a board of directors;

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■ a requirement that a substantial majority (e.g., 2/3) of a company's directors be independent;

■ a proposal that a majority of the entirety of the board's committees be comprised of independent directors;

■ proposals seeking to de-classify a board;

■ the implementation of director stock retention/holding periods;

■ proposals relating to the establishment of directors' mandatory retirement age and age restrictions for directors especially where such proposals seek to facilitate the improvement of the diversity of the board; and

■ changes to the articles of association and other relevant documents which are in the long-term interests of shareholders;

■ the appointment or (re)election of internal statutory auditors/fiscal council members unless (a) the name of the management nominees are not disclosed in a timely manner prior to the meeting, (b) there are serious concerns about statutory reports presented or the audit procedures used, (c) questions exist concerning any of the auditors, (d) the auditors have previously served the company in an executive capacity (or are otherwise considered affiliated) or (e) minority shareholders have presented timely disclosure of minority fiscal council nominee(s) to be elected under separate elections.

**Lazard has Approved Guidelines generally to vote on a CASE by CASE Basis for the following:**

■ proposals to require an independent board chair or the separation of chairman and CEO; and

■ establishment of shareholder advisory committees.

**Lazard has Approved Guidelines generally to vote AGAINST the following:**

■ proposals seeking to classify a board

■ the election of directors where the board does not have independent "key committees" or sufficient board independence;

■ non-independent directors who serve on key committees that are not sufficiently independent;

■ proposals relating to cumulative voting;

■ proposals where the names of the candidates (in the case of an election) or the principles for the establishment of a committee (where a new committee is being created) have not been disclosed in a timely manner;

■ release of restrictions on competitive activities of directors2 if (a) there is a lack of disclosure on the key information including identities of directors in question, current position in the company and outside boards they are serving on or (b) the non-nomination system is employed by the company for the director election; and the discharge of directors, including members of the management board and/or supervisory board and auditors, unless there is reliable information about significant and compelling concerns that the board is not fulfilling its fiduciary duties3.

b. Anti-takeover Measures

Certain proposals are intended to deter outside parties from taking control of a company. Such proposals could entrench management and adversely affect shareholder rights and the value of the company's shares.

Consequently, Lazard has adopted Approved Guidelines to vote AGAINST:

■ proposals to adopt supermajority vote requirements or increase vote requirements;

■ proposals seeking to adopt fair price provisions and on a case-by-case basis regarding proposals seeking to rescind them; and

■ "blank check" preferred stock.

Lazard has adopted Approved Guidelines to vote on a CASE by CASE basis regarding other provisions seeking to amend a company's by-laws or charter regarding anti-takeover provisions or shareholder rights plans (also known as "poison pill plans").

Lazard has adopted an Approved Guideline to vote FOR proposals that ask management to submit any new poison pill plan to shareholder vote.

c. Conduct of Shareholder Meetings

Lazard generally opposes any effort by management to restrict or limit shareholder participation in shareholder meetings, and is in favor of efforts to enhance shareholder participation.

**Lazard has therefore adopted Approved Guidelines to vote AGAINST:**

■ proposals to adjourn US meetings;

■ proposals seeking to eliminate or restrict shareholders' right to call a special meeting;

■ efforts to eliminate or restrict right of shareholders to act by written consent; and

■ proposals to adopt supermajority vote requirements, or increase vote requirements.

**Lazard has adopted Approved Guidelines to vote on a CASE by CASE basis** on changes to quorum requirements and **FOR** proposals providing for confidential voting.

**4. Changes to Capital Structure**

Lazard receives many proxies that include proposals relating to a company's capital structure. These proposals vary greatly, as each one is unique to the circumstances of the company involved, as well as the general economic and market conditions existing at the time of the proposal. A board and management may have many legitimate business reasons in seeking to effect changes to the issuer's capital structure, including investing in financial products and raising additional capital for appropriate business reasons, cash flow and market conditions. Lazard generally believes that these decisions are best left to management but will monitor these proposals closely to ensure that they are aligned with the long-term interests of shareholders.

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**Lazard has adopted Approved Guidelines to vote FOR:**

■ management proposals to increase or decrease authorized common or preferred stock (unless it is believed that doing so is intended to serve as an anti-takeover measure);

■ stock splits and reverse stock splits;

■ investments in financial products unless the company fails to provide meaningful shareholder vote or there are significant concerns with the company's previous similar investments;4

■ requests to reissue any repurchased shares unless there is clear evidence of abuse of authority in the past;

■ management proposals to adopt or amend dividend reinvestment plans; and

■ dividend distribution policies unless (a) the dividend payout ratio has been consistently below 30% without adequate explanation or (b) the payout is excessive given the company's financial position.

**Lazard has adopted Approved Guidelines to vote on a CASE by CASE basis for:**

■ matters affecting shareholder rights, such as amending votes-per-share;

■ management proposals to issue a new class of common or preferred shares (unless covered by an Approved Guideline relating to the disapplication of pre-emption rights); • the use of proceeds and the company's past share issuances5;

■ proposals seeking to approve or amend stock ownership limitations or transfer restrictions; and • loan and financing proposals. In assessing requests for loan financing provided by a related party the following factors will be considered: (a) use of proceeds, size or specific amount of loan requested, interest rate and relation of the party providing the loan.

■ Lazard has adopted Approved Guidelines to vote AGAINST:

■ changes in capital structure designed to be used in poison pill plans or which seeks to disregard pre-emption rights in a way that does not follow guidance set by the UK Pre-Emption Group's Statement of Principles;

■ the provision of loans to clients, controlling shareholders and actual controlling persons of the company; and

■ the provision of loans to an entity in which the company's ownership stake is less than 75% and the financing provision is not proportionate to the company's equity stake.

**5. Executive Compensation Issues**

Lazard supports efforts by companies to adopt compensation and incentive programs to attract and retain the highest caliber management possible, and to align the interests of a board, management and employees with those of long-term shareholders. Lazard generally favors programs intended to reward management and employees for positive and sustained, long-term performance but will take into account various considerations such as whether compensation appears to be appropriate for the company after an analysis of the totality of the circumstances (including the company's time in history and evolution).

**Lazard has Approved Guidelines generally to vote FOR:**

■ employee stock purchase plans, deferred compensation plans, stock option plans and stock appreciation rights plans that are in the long-term interests of shareholders;

■ proposals to submit severance agreements to shareholders for approval;

■ annual advisory votes on compensation outcomes where the outcomes are considered to be aligned with the interest of shareholders; and

■ annual compensation policy votes where the policy structures are considered to be aligned with the interest of shareholders.

**Lazard has Approved Guidelines generally to vote on a CASE by CASE basis regarding:**

■ restricted stock plans that do not define performance criteria; and

■ proposals to approve executive loans to exercise options.

**Lazard has Approved Guidelines generally to vote AGAINST:**

■ proposals to re-price underwater options;

■ annual advisory votes on remuneration outcomes where the outcomes are considered not to be in the interests of shareholders; and

■ annual remuneration policy vote where the policy structures are considered not to be in the interests of shareholders.

**6. Mergers and Other Significant Transactions**

Shareholders are asked to consider a number of different types of significant transactions, including mergers, acquisitions, sales of all or substantially all of a company's assets, reorganizations involving business combinations and liquidations. Each of these transactions is unique. Therefore, Lazard's Approved Guideline is to vote on a CASE by CASE basis for these proposals.

**7. Environmental, Social, and Corporate Governance**

Proposals involving environmental, social, and corporate governance issues take many forms and cover a wide array of issues. Some examples may include: proposals to have a company increase its environmental disclosure; adoption of principles to limit or eliminate certain business activities; adoption of certain conservation efforts; adoption of proposals to improve the diversity of the board, the senior management team and the workforce in general; adoption of proposals to improve human capital management or the adoption of certain principles regarding employment practices or discrimination policies. These items are often presented by shareholders and are often opposed by the company's management and its board of directors.

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As set out in Lazard's separate ESG Policy, Lazard is committed to an investment approach that incorporates ESG considerations in a comprehensive manner in order to safeguard the long-term interests of our clients and to manage more effectively long-term investment risks and opportunities related to ESG matters. Lazard generally supports the notion that corporations should be expected to act as good citizens. Lazard generally votes on environmental, social and corporate governance proposals in a way that it believes will most increase long-term shareholder value.

**Lazard's Approved Guidelines are structured to evaluate many environmental, social and corporate governance proposals on a** **case-by-case basis.**

However, as a guide, **Lazard will generally vote FOR proposals:**

■ asking for a company to increase its environmental/social disclosures (e.g., to provide a corporate sustainability report);

■ seeking the approval of anti-discrimination policies;

■ which are considered socially responsible agenda items;

■ which improve an investee company's ESG risk management and related disclosures; and

■ deemed to be in the long-term interests of shareholders.

**8. Shareholder Proposals**

Lazard believes in the ability of shareholders to leverage their rights related to the use of shareholder proposals to address deficits in best practices and related disclosures by companies. Many ESG issues are improved through such use of shareholder proposals. For example, some companies are collaborating with shareholders on such proposals by voicing their support and recommending that shareholders vote in-line with such proposals.

Lazard has Approved Guidelines generally to vote FOR shareholder proposals which:

■ seek improved disclosure of an investee company's ESG practices over an appropriate timeframe;

■ seek improved transparency over how the investee company is supporting the transition to a low carbon economy;

■ seek to improve the diversity of the board;

■ seek improved disclosures on the diversity of the board and the wider workforce;

■ seek to establish minimum stock-ownership requirements for directors over an appropriate time frame;

■ seek to eliminate or restrict severance agreements, or

■ are deemed to be in the long-term interests of shareholders including Lazard's clients.

Lazard has Approved Guidelines generally to vote AGAINST shareholder proposals which:

■ seek to infringe excessively on management's decision-making flexibility;

■ seek to establish additional board committees (absent demonstrable need);

■ seek to establish term limits for directors if this is unnecessary;

■ seek to change the size of a board (unless this facilitates improved board diversity);

■ seek to require two candidates for each board seat; or

■ are considered not to be in the long-terms interests of shareholders.

**E. Voting Securities in Different Countries**

Laws and regulations regarding shareholder rights and voting procedures differ dramatically across the world. In certain countries, the requirements or restrictions imposed before proxies may be voted may outweigh any benefit that could be realized by voting the proxies involved. For example, certain countries restrict a shareholder's ability to sell shares for a certain period of time if the shareholder votes proxies at a meeting (a practice known as "share blocking"). In other instances, the costs of voting a proxy (i.e., by being routinely required to send a representative to the meeting) may simply outweigh any benefit to the client if the proxy is voted. Generally, the Proxy Administration Team will consult with Portfolio Management in determining whether to vote these proxies.

There may be other instances where Portfolio Management may wish to refrain from voting proxies (See Section G.1. below).

**F. Conflicts of Interest**

**1. Overview**

This Policy and related procedures implemented by Lazard are designed to address potential conflicts of interest posed by Lazard's business and organizational structure. Examples of such potential conflicts of interest are:

■ Lazard Frères & Co. LLC ("LF&Co."), Lazard's parent company and a registered broker- dealer, or a financial advisory affiliate, has a relationship with a company the shares of which are held in accounts of Lazard clients, and has provided financial advisory or related services to the company with respect to an upcoming significant proxy proposal (i.e., a merger or other significant transaction);

■ Lazard serves as an investment adviser for a company the management of which supports a particular proposal;

■ Lazard serves as an investment adviser for the pension plan of an organization that sponsors a proposal; or

■ A Lazard employee who would otherwise be involved in the decision-making process regarding a particular proposal has a material relationship with the issuer or owns shares of the issuer.

**2. General Policy**

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All proxies must be voted in the best long-term interest of each Lazard client, without consideration of the interests of Lazard, LF&Co. or any of their employees or affiliates. The Proxy Administration Team is responsible for all proxy voting in accordance with this Policy after consulting with the appropriate member or members of Portfolio Management, the Proxy Committee and/or the Legal & Compliance Department. No other employees of Lazard, LF&Co. or their affiliates may influence or attempt to influence the vote on any proposal. Violations of this Policy could result in disciplinary action, including letter of censure, fine or suspension, or termination of employment. Any such conduct may also violate state and Federal securities and other laws, as well as Lazard's client agreements, which could result in severe civil and criminal penalties being imposed, including the violator being prohibited from ever working for any organization engaged in a securities business. Every officer and employee of Lazard who participates in any way in the decision-making process regarding proxy voting is responsible for considering whether they have a conflicting interest or the appearance of a conflicting interest on any proposal. A conflict could arise, for example, if an officer or employee has a family member who is an officer of the issuer or owns securities of the issuer. If an officer or employee believes such a conflict exists or may appear to exist, he or she should notify the Chief Compliance Officer immediately and, unless determined otherwise, should not continue to participate in the decision-making process.

**3. Monitoring for Conflicts and Voting When a Material Conflict Exists**

The Proxy Administration Team monitors for potential conflicts of interest that could be viewed as influencing the outcome of Lazard's voting decision. Consequently, the steps that Lazard takes to monitor conflicts, and voting proposals when the appearance of a material conflict exists, differ depending on whether the Approved Guideline for the specific item is clearly defined to vote for or against, or is to vote on a case-by-case basis. Any questions regarding application of these conflict procedures, including whether a conflict exists, should be addressed to Lazard's Chief Compliance Officer or General Counsel.

a. Where Approved Guideline Is For or Against

Lazard has an Approved Guideline to vote for or against regarding most proxy agenda/proposals. Generally, unless Portfolio Management disagrees with the Approved Guideline for a specific proposal, the Proxy Administration Team votes according to the Approved Guideline. It is therefore necessary to consider whether an apparent conflict of interest exists when Portfolio Management disagrees with the Approved Guideline. The Proxy Administration Team will use its best efforts to determine whether a conflict of interest or potential conflict of interest exists. If conflict appears to exist, then the proposal will be voted according to the Approved Guideline. In situations where the Approved Guideline is to vote Case by Case, Lazard will vote in accordance with the recommendations of one of the proxy voting services Lazard retains to provide independent analysis. Lazard also reserves its right to Abstain.

In addition, in the event of a conflict that arises in connection with a proposal for Lazard to vote shares held by Lazard clients in a Lazard mutual fund, Lazard will typically vote each proposal for or against proportion to the shares voted by other shareholders.

b. Where Approved Guideline Is Case-by-Case

In situations where the Approved Guideline is to vote case-by-case and a material conflict of interest appears to exist, Lazard's policy is to vote the proxy item according to the majority recommendation of the independent proxy services to which we subscribe. Lazard also reserves the right to Abstain.

**G. Other Matters**

**1. Issues Relating to Management of Specific Lazard Strategies**

Due to the nature of certain strategies managed by Lazard, there may be times when Lazard believes that it may not be in the best interests of its clients to vote in accordance with the Approved Guidelines, or to vote proxies at all. In certain markets, the fact that Lazard is voting proxies may become public information, and, given the nature of those markets, may impact the price of the securities involved. Lazard may simply require more time to fully understand and address a situation prior to determining what would be in the best interests of shareholders. In these cases the Proxy Administration Team will look to Portfolio Management to provide guidance on proxy voting rather than vote in accordance with the Approved Guidelines, and will obtain the Proxy Committee's confirmation accordingly.

Additionally, Lazard may not receive notice of a shareholder meeting in time to vote proxies for or may simply be prevented from voting proxies in connection with a particular meeting. Due to the compressed time frame for notification of shareholder meetings and Lazard's obligation to vote proxies on behalf of its clients, Lazard may issue standing instructions to ISS on how to vote on certain matters.

Different strategies managed by Lazard may hold the same securities. However, due to the differences between the strategies and their related investment objectives, one Portfolio Management team may desire to vote differently than the other, or one team may desire to abstain from voting proxies while the other may desire to vote proxies. In this event, Lazard would generally defer to the recommendation of the Portfolio Management teams to determine what action would be in the best interests of its clients. The Chief Compliance Officer or General Counsel, in consultation with members of the Proxy Committee will determine whether it is appropriate to approve a request to split votes among one or more Portfolio Management teams.

**2. Stock Lending**

As noted in Section B above, Lazard does not generally vote proxies for securities that a client has authorized their custodian bank to use in a stock loan program, which passes voting rights to the party with possession of the shares. Under certain circumstances, Lazard may determine to recall loaned stocks in order to vote the proxies associated with those securities. For example, if Lazard determines that the entity in possession of the stock has borrowed the stock solely to be able to obtain control over the issuer of the stock by voting proxies, or if the client should specifically request Lazard to vote the shares on loan, Lazard may determine to recall the stock and vote the proxies itself. However, it is expected that this will be done only in exceptional circumstances. In such event, Portfolio Management will make this determination and the Proxy Administration Team will vote the proxies in accordance with the Approved Guidelines.

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**H. Reporting**

Separately managed account clients of Lazard who have authorized Lazard to vote proxies on their behalf will receive information on proxy voting with respect to that account. Additionally, the US mutual funds managed by Lazard will disclose proxy voting information on an annual basis on Form N-PX which is filed with the SEC.

**I. Recordkeeping**

**J. Review of Policy and Approved Guidelines**

The Proxy Committee will review this Policy at least annually to consider whether any changes should be made to it or to any of the Approved Guidelines. The Proxy Committee will make revisions to its Approved Guidelines when it determines it is appropriate or when it sees an opportunity to materially improve outcomes for clients. Questions or concerns regarding the Policy should be raised with Lazard's General Counsel and Chief Compliance Officer.

Revised As Of April 1, 2022

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 **WCM Investment Management, Inc.**<br>**PROXY VOTING POLICIES & PROCEDURES**

**A. Proxy Voting Procedures**

WCM accepts responsibility for voting proxies whenever requested by a Client or as required by law. Each Client's investment management agreement should specify whether WCM is to vote proxies relating to securities held for the Client's account. If the agreement is silent as to the proxy voting and no instructions from the client are on file, WCM will assume responsibility of proxy voting.

***<u>Special Rule in the Case of ERISA Accounts.</u>***

Unless <u>proxy voting responsibility</u> has been expressly reserved and is being exercised by another "named fiduciary" for an ERISA Plan Client, WCM, as the investment manager for the account, must vote all proxies relating to securities held for the Plan's account. Please refer to ERISA Accounts section below for further details.

In cases in which WCM has proxy voting authority for securities held by its advisory clients, WCM will ensure securities are voted for the exclusive benefit, and in the best economic interest, of those clients and their beneficiaries, subject to any restrictions or directions from a client. Such voting responsibilities will be exercised in a manner that is consistent with the general antifraud provisions of the Advisers Act, and the Proxy Voting Rule, Rule 206(4)-6, as well as with WCM's fiduciary duties under federal and state law to act in the best interests of its clients. Even when WCM has proxy voting authority, a Client may request that WCM vote in a certain manner. Any such instructions shall be provided to WCM, in writing or electronic communication, saved in the Client files and communicated to the Portfolio Associate and Proxy Admin.

**<u>1. Role of the Independent Proxy Adviser</u>**

WCM utilizes the proxy voting recommendations of Glass Lewis (our "Proxy Adviser"). The purpose of the Proxy Advisers proxy research and advice is to facilitate shareholder voting in favor of governance structures that will drive performance, create shareholder value and maintain a proper tone at the top. Because the Proxy Adviser is not in the business of providing consulting services to public companies, it can focus solely on the best interests of investors. The Proxy Adviser' approach to corporate governance is to look at each company individually and determine what is in the best interests of the shareholders of each particular company. Research on proxies covers more than just corporate governance – The Proxy Adviser analyzes accounting, executive compensation, compliance with regulation and law, risks and risk disclosure, litigation and other matters that reflect on the quality of board oversight and company transparency.

The voting recommendations of the Proxy Adviser are strongly considered; however, the final determination for voting in the best economic interest of the clients is the responsibility of the relevant strategy Investment Strategy Group ("ISG"). When a decision is reached to vote contrary to the recommendation of the Proxy Adviser, the ISG will address any potential conflicts of interest (as described in this policy) and proceed accordingly. They will maintain documentation to support the decision, which will be reviewed by the Compliance Team.

**<u>2. Role of the Portfolio Associate.</u>**

The Portfolio Associate is responsible for the onboarding and maintenance of Client accounts. For each Client, the Portfolio Associate:

a. Determines whether WCM is vested with proxy voting responsibility or whether voting is reserved to the Client or delegated to another designee;

b. Instructs registered owners of record (e.g. the Client, Trustee or Custodian) that receive proxy materials from the issuer or its information agent to send proxies electronically directly to Broadridge/ProxyEdge, a third party service provider, to: (1) provide notification of impending votes; (2) vote proxies based on the Proxy Adviser and/or WCM recommendations; and (3) maintain records of such votes electronically.

c. Assigns the appropriate proxy voting guidelines based on a Client's Investment Policy Guidelines;

d. Reports proxy voting record to Client, as requested.

**<u>3. Role of the Proxy Admin.</u>**

The Proxy Admin circulates proxy ballot information and administers the proxy vote execution process. The Proxy Admin:

a. Monitors the integrity of the data feed between the Client's registered owner of record and Broadridge/ProxyEdge;

b. Executes votes based on the recommendation of the Proxy Adviser or ISG;

c. Ensures all votes are cast in a timely manner.

**<u>4. Role of the ISG and Analysts</u>**

With the support of the Analysts, and in consideration of the voting recommendation of the Proxy Adviser, the Investment Strategy Group (ISG) is responsible for review of the Proxy Adviser policy and final vote determination. The ISG:

a. Annually, reviews the policy of the Proxy Adviser to ensure voting recommendations are based on a Client's best interest;

b. Reviews the ballot voting recommendations of the Proxy Adviser;

c. Investigates ballot voting issues during the normal course of research, company visits, or discussions with company representatives.

If the ISG:

a. Agrees with the voting recommendation of the Proxy Adviser, no further action is required;

b. Disagrees with the voting recommendation of the Proxy Adviser, they will:

1) Deal with conflicts of interest, as described below;

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2) Provide updated voting instructions to the Proxy Admin;

3) Document the rationale for the decision, which is provided to Compliance.

**<u>5. Certain Proxy Votes May Not Be Cast</u>**<br>In some cases, WCM may determine that it is in the best interests of our clients to abstain from voting certain proxies. WCM will abstain from voting in the event any of the following conditions are met with regard to a proxy proposal:

a. Neither the Proxy Adviser' recommendation nor specific client instructions cover an issue;<br>b. In circumstances where, in WCM's judgment, the costs of voting the proxy exceed the expected benefits to the Client.<br>In addition, WCM will only seek to vote proxies for securities on loan when such a vote is deemed to have a material impact on the account. In such cases, materiality is determined and documented by the ISG.

<br>Further, in accordance with local law or business practices, many foreign companies prevent the sales of shares that have been voted for a certain period beginning prior to the shareholder meeting and ending on the day following the meeting ("share blocking"). Depending on the country in which a company is domiciled, the blocking period may begin a stated number of days prior to the meeting (e.g., one, three or five days) or on a date established by the company. While practices vary, in many countries the block period can be continued for a longer period if the shareholder meeting is adjourned and postponed to a later date. Similarly, practices vary widely as to the ability of a shareholder to have the "block" restriction lifted early (e.g., in some countries shares generally can be "unblocked" up to two days prior to the meeting whereas in other countries the removal of the block appears to be discretionary with the issuer's transfer agent). WCM believes that the disadvantage of being unable to sell the stock regardless of changing conditions generally outweighs the advantages of voting at the shareholder meeting for routine items. Accordingly, WCM generally will not vote those proxies subject to "share blocking."

<br>**<u>6. Identifying and Dealing with Material Conflicts of Interest between WCM and Proxy Issuer</u>**

WCM believes the use of the Proxy Adviser's independent guidelines helps to mitigate proxy voting related conflicts between the firm and its clients. Notwithstanding WCM may choose to vote a proxy against the recommendation of the Proxy Adviser, if WCM believes such vote is in the best economic interest of its clients. Such a decision will be made and documented by the ISG. Because WCM retains this authority, it creates a potential conflict of interest between WCM and the proxy issuer. As a result, WCM may not overrule the Proxy Adviser' recommendation with respect to a proxy unless the following steps are taken by the CCO:

a. The CCO must determine whether WCM has a <u>conflict of interest with respect to the issuer</u> that is the subject of the proxy. The CCO will use the following standards to identify issuers with which WCM may have a conflict of interest.

<br>1) Significant Business Relationships – The CCO will determine whether WCM may have a significant business relationship with the issuer, such as, for example, where WCM manages a pension plan. For this purpose, a "significant business relationship" is one that: (i) represents 1% or $1,000,000 of WCM's revenues for the fiscal year, whichever is less, or is reasonably expected to represent this amount for the current fiscal year; or (ii) may not directly involve revenue to WCM but is otherwise determined by the CCO to be significant to WCM.

<br>2) Significant Personal/Family Relationships – the CCO will determine whether any supervised persons who are involved in the proxy voting process may have a significant personal/family relationship with the issuer. For this purpose, a "significant personal/family relationship" is one that would be reasonably likely to influence how WCM votes proxies. To identify any such relationships, the CCO shall obtain information about any significant personal/family relationship between any employee of WCM who is involved in the proxy voting process (e.g., ISG members) and senior supervised persons of issuers for which WCM may vote proxies.

b. If the CCO determines that WCM has a conflict of interest with respect to the issuer, the CCO shall determine whether the <u>conflict is "material" to</u> <u>any specific proposal</u> included within the proxy. The CCO shall determine whether a proposal is material as follows:

1) Routine Proxy Proposals – Proxy proposals that are "routine" shall be presumed not to involve a material conflict of interest for WCM, unless the ISG has actual knowledge that a routine proposal should be treated as material. For this purpose, "routine" proposals would typically include matters such as the selection of an accountant, uncontested election of directors, meeting formalities, and approval of an annual report/financial statements.

2) Non-Routine Proxy Proposals – Proxy proposals that are "non-routine" shall be presumed to involve a material conflict of interest for WCM, unless the CCO determines that WCM's conflict is unrelated to the proposal in question (see 3. below). For this purpose, "non-routine" proposals would typically include any contested matter, including a contested election of directors, a merger or sale of substantial assets, a change in the articles of incorporation that materially affects the rights of shareholders, and compensation matters for management (e.g., stock option plans, retirement plans, profit sharing or other special remuneration plans).

3) Determining that a Non-Routine Proposal is Not Material– As discussed above, although non-routine proposals are presumed to involve a material conflict of interest, the CCO may determine on a case-by-case basis that particular non-routine proposals do not involve a material conflict of interest. To make this determination, the CCO must conclude that a proposal is not directly related to WCM's conflict with the issuer or that it otherwise would not be considered important by a reasonable investor. The CCO shall record in writing the basis for any such determination.

c. For any proposal where the CCO determines that WCM has a material conflict of interest, WCM may vote a proxy regarding that proposal in any of the following manners:

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1) Obtain Client Consent or Direction– If the CCO approves the proposal to overrule the recommendation of the Proxy Adviser, WCM shall fully disclose to each client holding the security at issue the nature of the conflict, and obtain the client's consent to how WCM will vote on the proposal (or otherwise obtain instructions from the client as to how the proxy on the proposal should be voted).

2) Use the Proxy Adviser' Recommendation – Vote in accordance with the Proxy Adviser' recommendation.

d. For any proposal where the CCO determines that WCM does not have a material conflict of interest, the ISG may overrule the Proxy Adviser' recommendation if the ISG reasonably determines that doing so is in the best interests of WCM's clients. If the ISG decides to overrule the Proxy Adviser' recommendation, the ISG will maintain documentation to support their decision.

**<u>7. Dealing with Material Conflicts of Interest between a Client and the Proxy Adviser or Proxy Issuer</u>**<br>In the event that WCM is notified by a client regarding a conflict of interest between them and the Proxy Adviser or the proxy issuer, The CCO will evaluate the circumstances and either

a. elevate the decision to the ISG who will make a determination as to what would be in the Client's best interest;

b. if practical, seek a waiver from the Client of the conflict; or

c. if agreed upon in writing with the Clients, forward the proxies to affected Clients allowing them to vote their own proxies.

**<u>8. Maintenance of Proxy Voting Records</u>**

As required by Rule 204-2 under the Advisers Act, as amended, WCM will maintain or procure the maintenance of the following records relating to proxy voting for a period of at least five years:

a. a copy of these Proxy Policies, as they may be amended from time to time;

b. copies of proxy statements received regarding Client securities, unless these materials are available electronically through the SEC's EDGAR system;

c. a record of each proxy vote cast on behalf of its Clients;

e. each written Client request for information on how WCM voted proxies on behalf of the Client and each written response by WCM to oral or written Client requests for this information.

As permitted by Rule 204-2(c), electronic proxy statements and the record of each vote cast on behalf of each Client account will be maintained by ProxyEdge. WCM shall obtain and maintain an undertaking from ProxyEdge to provide it with copies of proxy voting records and other documents relating to its Clients' votes promptly upon request. WCM and ProxyEdge may rely on the SEC's EDGAR system to keep records of certain proxy statements if the proxy statements are maintained by issuers on that system (e.g., large U.S.-based issuers).

**<u>9. Disclosure</u>**

WCM will provide all Clients a summary of these Proxy Policies, either directly or by delivery to the Client of a copy of its Form ADV, Part 2A containing such a summary, and information on how to obtain a copy of the full text of these Proxy Policies and a record of how WCM has voted the Client's proxies. Upon receipt of a Client's request for more information, WCM will provide to the Client a copy of these Proxy Policies and/or in accordance with the Client's stated requirements, how the Client's proxies were voted during the period requested. Such periodic reports will not be made available to third parties absent the express written request of the Client. However, to the extent that WCM serves as a sub-adviser to another adviser to a Client, WCM will be deemed to be authorized to provide proxy voting records on such Client accounts to such other adviser.

**<u>10. Oversight of the Proxy Adviser</u>**

Compliance, in conjunction with input from the Proxy Admin, the ISG and others as determined by the CCO, will review WCM's relationship with, and services provided by the Proxy Adviser at least annually. To facilitate this review, WCM will request information from the Proxy Adviser in consideration of the Proxy Adviser processes, policies and procedures to:

• Analyze and formulate voting recommendations on the matters for which WCM is responsible for voting and to disclose its information sources and methods used to develop such voting recommendations;

• Ensure that it has complete and accurate information about issuers when making recommendations and to provide its clients and issuers timely opportunities to provide input on certain matters;

• Resolve any identified material deficiencies in the completeness or accuracy of information about issuers for whom voting recommendations are made; and

• Identify, resolve and disclose actual and potential conflicts of interest associated with its recommendations;

Additionally, WCM will review the Proxy Adviser' proposed changes to its proxy voting guidelines to ensure alignment with the ISG's expectations. The Proxy Adviser typically distributes proposed changes to its guidelines annually; therefore, WCM's review of these proposed changes will typically coincide with the Proxy Adviser' schedule.

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**APPENDIX C**

**Ratings Definitions**

Below are summaries of the ratings definitions used by some of the rating organizations. Those ratings represent the opinion of the rating organizations as to the credit quality of the issues that they rate. The summaries are based upon publicly available information provided by the rating organizations.

<u>Ratings of Long-Term Obligations and Preferred Stocks</u> — The Fund utilizes ratings provided by rating organizations in order to determine eligibility of long-term obligations. The ratings described in this section may also be used for evaluating the credit quality for preferred stocks.

Credit ratings typically evaluate the safety of principal and interest payments, not the market value risk of bonds. The rating organizations may fail to update a credit rating on a timely basis to reflect changes in economic or financial conditions that may affect the market value of the security. For these reasons, credit ratings may not be an accurate indicator of the market value of a bond.

The four highest Moody's ratings for long-term obligations (or issuers thereof) are Aaa, Aa, A and Baa. Obligations rated Aaa are judged to be of the highest quality and subject to the lowest level of credit risk. Obligations rated Aa are judged to be of high quality and subject to very low credit risk. Obligations rated A are judged to be upper-medium grade and subject to low credit risk. Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and, as such, may possess certain speculative characteristics.

Moody's ratings of Ba, B, Caa, Ca and C are considered below investment grade. Obligations rated Ba are judged to have speculative elements and are subject to substantial credit risk. Obligations rated B are considered speculative and subject to high credit risk. Obligations rated Caa are judged to be of poor standing and subject to very high credit risk. Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest. Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of principal or interest. Moody's also appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. Additionally, a "(hyb)" indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance companies, and securities firms. By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments, which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with that security.

The four highest S&P Global ratings for long-term obligations are AAA, AA, A and BBB. An obligation rated AAA has the highest rating assigned by S&P Global and indicates that the obligor's capacity to meet its financial commitments on the obligation is extremely strong. An obligation rated AA differs from the highest-rated obligations only to a small degree. The obligor's capacity to meet its financial commitments on the obligation is very strong. An obligation rated A is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor's capacity to meet its financial commitments on the obligation is still strong. An obligation rated BBB exhibits adequate protection parameters; however, adverse economic conditions or changing circumstances are more likely to weaken the obligor's capacity to meet its financial commitments on the obligation.

S&P Global ratings of BB, B, CCC, CC, C, SD, and D are regarded as having significant speculative characteristics. BB indicates the least degree of speculation and C the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposure to adverse conditions. An obligation rated BB is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitments on the obligation. An obligation rated B is more vulnerable to nonpayment than obligations rated BB, but the obligor currently has the capacity to meet its financial commitments on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitments on the obligation. An obligation rated CCC is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitments on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitments on the obligation. An obligation rated CC is currently highly vulnerable to nonpayment. The CC rating is used when a default has not yet occurred but S&P Global expects default to be a virtual certainty, regardless of the anticipated time to default. An obligation rated C is currently highly vulnerable to nonpayment, and the obligation is expected to have lower relative seniority or lower ultimate recovery compared with obligations that are rated higher. An obligation rated D is in default or in breach of an imputed promise. For non-hybrid capital instruments, the D rating category is used when payments on an obligation are not made on the date due, unless S&P Global believes that such payments will be made within five business days in the absence of a stated grace period or within the earlier of the stated grace period or the next 30 calendar days. The D rating also will be used upon the filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual certainty, for example due to automatic stay provisions. An obligation's rating is lowered to D if it is subject to a distressed debt restructuring. An SD (selective default) rating is assigned when S&P Global believes that the obligor has selectively defaulted on a specific issue or class of obligations but it will continue to meet its payment obligations on other issues or classes of obligations in a timely manner. The ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories.

The four highest ratings for long-term obligations by Fitch Ratings are AAA, AA, A and BBB. Obligations rated AAA are deemed to be of the highest credit quality. AAA ratings denote the lowest expectation of credit risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. Obligations rated AA are deemed to be of very high credit quality. AA ratings denote expectations of very low credit risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. Obligations rated A are deemed to be of high credit quality. An A rating denotes expectations of low credit risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings. Obligations rated BBB are deemed to be of good

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credit quality. BBB ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity. This is the lowest investment grade category.

Fitch's ratings of BB, B, CCC, CC, C, RD and D are considered below investment grade or speculative grade. Obligations rated BB are deemed to be speculative. BB ratings indicate an elevated vulnerability to credit risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial alternatives may be available to allow financial commitments to be met. Obligations rated B are deemed to be highly speculative. B ratings indicate that material credit risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, the capacity for continued payment is vulnerable to deterioration in the business and economic environment. CCC ratings indicate that substantial credit risk is present. CC ratings indicate very high levels of credit risk. C indicates exceptionally high levels of credit risk Obligations rated C indicate a default or default-like process had begun, or the issuer is in standstill, or for a closed funding vehicle, payment capacity is irrevocably impaired. Ratings in the categories of 'CCC', 'CC', and 'C' can also relate to obligations or issuers that are in default. In this case, the rating does not opine on default risk but reflects the recovery expectation only. Conditions that are indicative of a C category rating for an issuer include: (a) the issuer has entered into a grace or cure period following non-payment of a material financial obligation; (b) the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment default on a material financial obligation; (c) the formal announcement by the issuer or their agent of a distressed debt exchange; or (d) a closed financing vehicle where payment capacity is irrevocably impaired such that it is not expected to pay interest and/or principal in full during the life of the transaction, but where no payment default is imminent. Obligations rated RD indicate an issuer that, in Fitch Ratings' opinion, has experienced an uncured payment default or distressed debt exchange on a bond, loan or other material financial obligation but which has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not otherwise ceased operating. This would include: (a) the selective payment default on a specific class or currency of debt; (b) the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a bank loan, capital markets security or other material financial obligation; (c) the extension of multiple waivers or forbearance periods upon a payment default on one or more material financial obligations, either in series or in parallel; or (d) ordinary execution of a distressed debt exchange on one or more material financial obligations. Obligations rated D indicate an issuer that, in Fitch Ratings' opinion, has entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure or that has otherwise ceased business. Default ratings are not assigned prospectively to entities or their obligations; within this context, non-payment on an instrument that contains a deferral feature or grace period will generally not be considered a default until after the expiration of the deferral or grace period, unless a default is otherwise driven by bankruptcy or other similar circumstance, or by a distressed debt exchange. In all cases, the assignment of a default rating reflects the agency's opinion as to the most appropriate rating category consistent with the rest of its universe of ratings and may differ from the definition of default under the terms of an issuer's financial obligations or local commercial practice. The modifiers "+" or "-" may be appended to a rating to denote relative status within major rating categories. Such suffixes are not added to the AAA obligation rating category, or to corporate finance obligation ratings in the categories below CCC.

<u>Ratings of Municipal Obligations</u> — Moody's ratings for short-term investment-grade municipal obligations are designated Municipal Investment Grade (MIG or VMIG in the case of variable rate demand obligations) and are divided into three levels — MIG/VMIG 1, MIG/VMIG 2, MIG/VMIG 3, and SG. The MIG/VMIG 1 designation denotes superior credit quality. Excellent protection is afforded by the superior short-term credit strength of the liquidity provider and structural and legal protections. The MIG/VMIG 2 designation denotes strong credit quality. Generally, MIG/VMIG 2 indicates that the margins of protection are ample, although not as large as in the preceding group. The MIG/VMIG 3 designation denotes acceptable credit quality. Liquidity and cash-flow protection may be narrow, and market access for refinancing is likely to be less well-established. An SG designation denotes speculative-grade credit quality. Debt instruments in this category may lack sufficient margins of protection.

S&P Global uses SP-1, SP-2, SP-3, and D to rate short-term municipal obligations. A rating of SP-1 denotes a strong capacity to pay principal and interest. An issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation. A rating of SP-2 denotes a satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and economic changes over the term of the notes. A rating of SP-3 denotes a speculative capacity to pay principal and interest. A rating of D is assigned upon failure to pay the note when due, completion of a distressed debt restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual certainty, for example due to automatic stay provisions.

<u>Ratings of Short-Term Obligations</u> — Moody's short-term ratings, designated as P-1, P-2, P-3, or NP, are opinions of the ability of issuers to honor short-term financial obligations that generally have an original maturity not exceeding thirteen months. The rating P-1 (Prime-1) is the highest short-term rating assigned by Moody's and it denotes an issuer (or supporting institution) that has a superior ability to repay short-term debt obligations. The rating P-2 (Prime-2) denotes an issuer (or supporting institution) that has a strong ability to repay short-term debt obligations. The rating P-3 (Prime-3) denotes an issuer (or supporting institution) that has an acceptable ability for repayment of senior short-term policyholder claims and obligations. The rating NP (Not Prime) denotes an issuer (or supporting institution) that does not fall within any of the Prime rating categories.

S&P Global short-term ratings are generally assigned to those obligations considered short-term in the relevant market. In the U.S., for example, that means obligations with an original maturity of no more than 365 days, including commercial paper. A short-term obligation rated A-1 is rated in the highest category by S&P Global and indicates that the obligor's capacity to meet its financial commitments on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitments on these obligations is extremely strong. A short-term obligation rated A-2 is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in the highest rating category. However, the obligor's capacity to meet its financial commitments on the obligation is satisfactory. A short-term obligation rated A-3 exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to weaken the obligor's capacity to meet its financial commitments on the obligation. A short-term obligation rated B is regarded as vulnerable and has significant speculative characteristics. The obligor currently has the capacity to meet its financial commitments; however, it faces major ongoing uncertainties which could lead to the obligor's inadequate capacity to meet its financial commitments on the obligation. A short-term obligation rated C is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitments on the obligation. A short-term obligation rated D is in default or in breach of an imputed promise. For non-hybrid capital instruments, the D rating category is used when payments on an obligation are not made on the date due,

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unless S&P Global believes that such payments will be made within any stated grace period. However, any stated grace period longer than five business days will be treated as five business days. The D rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action and where default on an obligation is a virtual certainty, for example due to automatic stay provisions. An obligation's rating is lowered to D if it is subject to a distressed debt restructuring. An SD rating is assigned when S&P Global believes that the obligor has selectively defaulted on a specific issue or class of obligations but it will continue to meet its payment obligations on other issues or classes of obligations in a timely manner.

A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Fitch Rating's Short-Term Ratings are assigned to obligations whose initial maturity is viewed as "short term" based on market convention (a long-term rating can also be used to rate an issue with short maturity). Typically, this means up to 13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public finance markets. A rating of F1 denotes an obligation of the highest short-term credit quality. It indicates the strongest intrinsic capacity for timely payment of financial commitments and may have an added "+" to denote any exceptionally strong credit feature. A rating of F2 denotes good short-term credit quality. It indicates a good intrinsic capacity for timely payment of financial commitments. A rating of F3 denotes fair short-term credit quality. The intrinsic capacity for timely payment of financial commitments is adequate. A rating of B denotes an obligation that is of speculative short-term credit quality, indicating minimal capacity for timely payment of financial commitments as well as heightened vulnerability to near term adverse changes in financial and economic conditions. A rating of C denotes a high short-term default risk. Default is a real possibility. A rating of RD indicates an entity that has defaulted on one or more of its financial commitments, although it continues to meet other financial obligations. RD is typically applicable to entity ratings only. A rating of D indicates a broad-based default event for an entity or the default of a short-term obligation.

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**APPENDIX D**

**GLOSSARY**

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| | |
|:---|:---|
| **ADRs** | American Depositary Receipts |
| **Advisers Act** | Investment Advisers Act of 1940, as amended. |
| **American Beacon or the Manager** | American Beacon Advisors, Inc. |
| **Beacon Funds** | American Beacon Funds |
| **Board** | Board of Trustees |
| **Brexit** | The United Kingdom's departure from the European Union. |
| **CCO** | Chief Compliance Officer |
| **CD** | Certificate of Deposit |
| **CFTC** | Commodity Futures Trading Commission |
| **CMBS** | Commercial Mortgage-Backed Securities |
| **CMO** | Collateralized Mortgage Obligation |
| **CPO** | Commodity Pool Operator |
| **Denial of Services** | A cybersecurity incident that results in customers or employees being unable to access electronic systems |
| **Distributor** | Resolute Investment Distributors, Inc. |
| **Dividends** | Distributions of most or all of the Fund's net investment income |
| **Dodd-Frank Act** | Dodd-Frank Wall Street Reform and Consumer Protection Act |
| **ETF** | Exchange-Traded Fund |
| **EU** | European Union |
| **Fannie Mae** | Federal National Mortgage Association |
| **FFCB** | Federal Farm Credit Bank |
| **FHFA** | Federal Housing Finance Agency |
| **FHLMC** | Federal Home Loan Mortgage Corporation |
| **Floaters** | Floating rate debt instruments |
| **FNMA** | Federal National Mortgage Association |
| **Forwards** | Forward Currency Contracts |
| **Freddie Mac** | Federal Home Loan Mortgage Corporation |
| **GDR** | Global Depositary Receipt |
| **Ginnie Mae** | Government National Mortgage Association |
| **GNMA** | Government National Mortgage Association |
| **Holdings Policy** | Policies and Procedures for Disclosure of Portfolio Holdings |
| **Internal Revenue Code** | Internal Revenue Code of 1986, as amended |
| **Investment Company Act** | Investment Company Act of 1940, as amended |
| **IPO** | Initial Public Offering |
| **IRS** | Internal Revenue Service |
| **ISS** | Institutional Shareholder Services |
| **Junk Bonds** | High yield, non-investment grade bonds |
| **LIBOR** | ICE LIBOR |
| **Management Agreement** | The Fund's Management Agreement with the Manager. |
| **Manager** | American Beacon Advisors, Inc. |
| **MLP** | Master Limited Partnership |
| **Moody's** | Moody's Investors Service, Inc. |
| **NAV** | Net asset value |
| **NDF** | Non-deliverable forward contracts |

---

**D-1** 

------

[Back To **Table of Contents**](#TOC_2355)

---

| | |
|:---|:---|
| **NYSE** | New York Stock Exchange |
| **OTC** | Over-the-Counter |
| **PCAOB** | Public Company Accounting Oversight Board |
| **Proxy Policy** | Proxy Voting Policy and Procedures |
| **QDI** | Qualified Dividend Income |
| **REIT** | Real Estate Investment Trust |
| **REMICs** | Real Estate Mortgage Investment Conduits |
| **RIC** | Regulated Investment Company |
| **S&P Global** | S&P Global Ratings |
| **SAI** | Statement of Additional Information |
| **SEC** | Securities and Exchange Commission |
| **Securities Act** | Securities Act of 1933, as amended |
| **SMBS** | Stripped Mortgage-Backed Securities |
| **State Street** | State Street Bank and Trust Co. |
| **STRIPS** | Separately traded registered interest and principal securities |
| **Subsidiary** | A wholly owned subsidiary that is organized under the laws of the Cayman Islands |
| **TBA** | To be announced security |
| **Trust** | American Beacon Institutional Funds Trust |
| **Trustee Retirement Plan** | Trustee Retirement and Trustee Emeritus and Retirement Plan |
| **UK** | United Kingdom |
| **UMBS** | Uniform mortgage-backed security |
| **Voluntary Action** | When a Fund voluntarily participates in corporate actions (for example, rights offerings, conversion privileges, exchange offers, credit event settlements, etc.) where the issuer or counterparty offers securities or instruments to holders or counterparties, such as the Fund, and the acquisition is determined to be beneficial to Fund shareholders. |

---

**D-2**

------

**PART C**<br>OTHER INFORMATION

Item 28. Exhibits

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| | | |
|:---|:---|:---|
| **Number** | **Number** | **Exhibit Description** |
| (a) | (1) | [Certificate of Trust](https://www.sec.gov/Archives/edgar/data/1700933/000113322817001416/e461965_ex99-a1.htm), dated January 11, 2017, is incorporated by reference to Registrant's Initial Registration Statement on Form N-1A, filed on March 17, 2017 ("Initial Registration Statement") |
|  | (2) | [Amended and Restated Declaration of Trust](https://www.sec.gov/Archives/edgar/data/1700933/000089843219001526/decltrust.htm), dated August 20, 2019, is incorporated by reference to Amendment No. 10 to the Initial Registration Statement, filed on December 27, 2019 ("Amendment No. 10") |
| (b) |  | [Amended and Restated Bylaws](https://www.sec.gov/Archives/edgar/data/1700933/000089843219001526/bylaws.htm), effective as of August 20, 2019, is incorporated by reference to Amendment No. 10 |
| (c) |  | Not applicable |
| (d) | (1) | [Management Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322817001416/e461965_ex99-d1.htm) between American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., dated February 28, 2017, is incorporated by reference to the Initial Registration Statement |
|  | (2)(A) | [Investment Advisory Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322820007442/abift-html3103_ex99d2a.htm) among American Beacon Institutional Funds Trust, American Beacon Advisors, Inc. and Barrow, Hanley, Mewhinney & Strauss, LLC, dated November 17, 2020, is incorporated by reference to Amendment No. 16 to the Initial Registration Statement, filed on November 25, 2020 |
|  | (2)(B) | [Investment Advisory Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322820004693/abift-html2840_ex99d2b.htm) among American Beacon Institutional Funds Trust, American Beacon Advisors, Inc. and Brandywine Global Investment Management, LLC, dated July 21, 2020, is incorporated by reference to Amendment No. 15 to the Initial Registration Statement, filed on July 31, 2020 ("Amendment No. 15") |
|  | (2)(C) | [Investment Advisory Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322817002370/e464097_ex99-d2c.htm) among American Beacon Institutional Funds Trust, American Beacon Advisors, Inc., and Hotchkis and Wiley Capital Management LLC, dated March 21, 2017, is incorporated by reference to Amendment No. 1 to the Initial Registration Statement, filed on April 12, 2017 ("Amendment No. 1") |
|  | (2)(D)(1) | [Investment Advisory Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322817002370/e464097_ex99-d2d.htm) among American Beacon Institutional Funds Trust, American Beacon Advisors, Inc. and Lazard Asset Management LLC, dated March 21, 2017, is incorporated by reference to Amendment No. 1 |
|  | (2)(D)(2) | [First Amendment to Investment Advisory Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322820004693/abift-html2840_ex99d2d2.htm) among American Beacon Institutional Funds Trust, American Beacon Advisors, Inc. and Lazard Asset Management LLC, dated April 1, 2020, is incorporated by reference to Amendment No. 15 |
|  | (2)(E) | [Investment Advisory Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322817002370/e464097_ex99-d2f.htm) among American Beacon Institutional Funds Trust, American Beacon Advisors, Inc. and Aristotle Capital Management, LLC, dated March 21, 2017, is incorporated by reference to Amendment No. 1 |
|  | (2)(F) | [Investment Advisory Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322820000769/abit-html1988_ex99d2f.htm) among American Beacon Institutional Funds Trust, American Beacon Advisors, Inc. and WCM Investment Management, LLC, dated February 7, 2020, is incorporated by reference to Amendment No. 12 to the Initial Registration Statement, filed on February 28, 2020 |
| (e) |  | Not applicable |
| (f) |  | Not applicable |
| (g) | (1) | [Custodian Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322817002370/e464097_ex99-g1.htm) between American Beacon Institutional Funds Trust and State Street Bank and Trust Company, dated March 24, 2017, is incorporated by reference to Amendment No. 1 |
|  | (2) | [Class Action Filing Services Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322817002370/e464097_ex99-g2.htm) between American Beacon Institutional Funds Trust and State Street Bank and Trust Company, dated March 24, 2017, is incorporated by reference to Amendment No. 1 |
| (h) | (1)(A) | [Transfer Agency and Service Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322817002370/e464097_ex99-h1.htm) between American Beacon Institutional Funds Trust and State Street Bank and Trust Company, dated March 22, 2017, is incorporated by reference to Amendment No. 1 |
|  | (1)(B) | [Amendment to and Assignment of Transfer Agency and Service Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322819000671/html759_ex99-h1b.htm) between American Beacon Institutional Funds Trust and State Street Bank and Trust Company, dated November 29, 2017, is incorporated by reference to Amendment No. 9 to the Initial Registration Statement, filed on February 28, 2019 |
|  | (1)(C) | [Amendment to Transfer Agency and Service Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000089843219001526/trnsfragntagmtnovember.htm) between American Beacon Institutional Funds Trust and DST Asset Manager Solutions, Inc., dated November 16, 2018, is incorporated by reference to Amendment No. 10 |
|  | (1)(D) | [Amendment to Transfer Agency and Service Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000089843219001526/trnsfragntmtfebruary.htm) between American Beacon Institutional Funds Trust and DST Asset Manager Solutions, Inc., dated February 25, 2019, is incorporated by reference to Amendment No. 10 |
|  | (1)(E) | [Amendment to Transfer Agency and Service Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322820004693/abift-html2840_ex99h1e.htm) between American Beacon Institutional Funds Trust and DST Asset Manager Solutions, Inc., dated April 30, 2020, is incorporated by reference to Amendment No. 15 |
|  | (1)(F) | [Amendment to Transfer Agency and Service Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322822000946/abift-html4419_ex99h1f.htm) between American Beacon Institutional Funds Trust and DST Asset Manager Solutions, Inc., dated September 27, 2021, is incorporated by reference to Amendment No. 23 to the Initial Registration Statement, filed on February 28, 2022 ("Amendment No. 23") |
|  | (2)(A) | [Sub-Administrative Services Fee Agreement](abift-html5990_ex99h2a.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund, and American Beacon Advisors, Inc., dated April 30, 2017 - (filed herewith) |

---

**2**

------

---

| | |
|:---|:---|
| **Number** | **Exhibit Description** |
| <br> (2)(B) | [First Amendment to the Sub-Administrative Services Fee Agreement between](abift-html5990_ex99h2b.htm) American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund, and American Beacon Advisors, Inc., dated May 8, 2018 - (filed herewith) |
| <br> (2)(C) | [Second Amendment to the Sub-Administrative Services Fee Agreement](abift-html5990_ex99h2c.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund, and American Beacon Advisors, Inc., dated August 26, 2018 - (filed herewith) |
| <br> (2)(D) | [Third Amendment to the Sub-Administrative Services Fee Agreement](abift-html5990_ex99h2d.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., dated March 26, 2019 - (filed herewith) |
| <br> (2)(E) | [Fourth Amendment to the Sub-Administrative Services Fee Agreement](abift-html5990_ex99h2e.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., dated October 15, 2019 - (filed herewith) |
| <br> (2)(F) | [Fifth Amendment to the Sub-Administrative Services Fee Agreement](abift-html5990_ex99h2f.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., dated January 13, 2020 - (filed herewith) |
| <br> (2)(G) | [Sixth Amendment to the Sub-Administrative Services Fee Agreement](abift-html5990_ex99h2g.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective April 30, 2020 - (filed herewith) |
| <br> (2)(H) | [Seventh Amendment to the Sub-Administrative Services Fee Agreement](abift-html5990_ex99h2h.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective July 31, 2020 - (filed herewith) |
| <br> (2)(I) | [Eighth Amendment to the Sub-Administrative Services Fee Agreement](abift-html5990_ex99h2i.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective September 10, 2020 - (filed herewith) |
| <br> (2)(J) | [Ninth Amendment to the Sub-Administrative Services Fee Agreement](abift-html5990_ex99h2j.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective September 30, 2020 - (filed herewith) |
| <br> (2)(K) | [Tenth Amendment to the Sub-Administrative Services Fee Agreement](abift-html5990_ex99h2k.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective November 2, 2020 - (filed herewith) |
| <br> (2)(L) | [Eleventh Amendment to the Sub-Administrative Services Fee Agreement](abift-html5990_ex99h2l.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective August 2, 2021 - (filed herewith) |
| <br> (2)(M) | [Twelfth Amendment to the Sub-Administrative Services Fee Agreement](abift-html5990_ex99h2m.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., effective May 23, 2022 - (filed herewith) |
| <br> (2)(N) | [Thirteenth Amendment to the Sub-Administrative Services Fee Agreement](abift-html5990_ex99h2n.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., effective January 31, 2023 - (filed herewith) |
| <br> (3)(A) | [Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322817001416/e461965_ex99-h2.htm) between American Beacon Funds and State Street Bank and Trust Company, dated February 16, 2017, is incorporated by reference to the Initial Registration Statement |
| <br> (3)(B) | [Joinder and First Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322820004693/abift-html2840_ex99h2b.htm) between American Beacon Funds, American Beacon Institutional Funds Trust and State Street Bank and Trust Company, dated June 21, 2017, is incorporated by reference to Amendment No. 15 |
| <br> (3)(C) | [Second Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322820004693/abift-html2840_ex99h2c.htm) between American Beacon Funds, American Beacon Institutional Funds Trust and State Street Bank and Trust Company, dated September 18, 2017, is incorporated by reference to Amendment No. 15 |
| (3)(D) | [Third Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322820004693/abift-html2840_ex99h2d.htm) between American Beacon Funds, American Beacon Institutional Funds Trust and State Street Bank and Trust Company, dated October 31, 2018, is incorporated by reference to Amendment No. 15 |

---

**3** 

------

---

| | | |
|:---|:---|:---|
| **Number** | **Number** | **Exhibit Description** |
|  | (3)(E) | [Fourth Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322820004693/abift-html2840_ex99h2e.htm) between American Beacon Funds, American Beacon Institutional Funds Trust and State Street Bank and Trust Company, dated September 6, 2019, is incorporated by reference to Amendment No. 15 |
|  | (3)(F) | [Fifth Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322820004693/abift-html2840_ex99h2f.htm) between American Beacon Funds, American Beacon Institutional Funds Trust and State Street Bank and Trust Company, dated May 12, 2020, is incorporated by reference to Amendment No. 15 |
|  | (3)(G) | [Sixth Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/1700933/000113322820004693/abift-html2840_ex99h2g.htm) between American Beacon Funds, American Beacon Institutional Funds Trust and State Street Bank and Trust Company, dated May 27, 2020, is incorporated by reference to Amendment No. 15 |
|  | (3)(H) | [Seventh Amendment to Securities Lending Authorization Agreement](abift-html5990_ex99h3h.htm) between the American Beacon Funds, American Beacon Institutional Funds Trust and State Street Bank and Trust Company, dated November 29, 2022 - (filed herewith) |
|  | (3)(I) | [Eighth Amendment to Securities Lending Authorization Agreement](abift-html5990_ex99h3i.htm) between the American Beacon Funds, American Beacon Institutional Funds Trust and State Street Bank and Trust Company, effective January 31, 2023 - (filed herewith) |
| (i) |  | Not applicable |
| (j) | (1) | Not Applicable |
|  | (2) | Not Applicable |
| (k) |  | Not applicable |
| (l) |  | Not applicable |
| (m) |  | Not applicable |
| (n) |  | Not applicable |
| (p) | (1) | [Code of Ethics](https://www.sec.gov/Archives/edgar/data/1700933/000113322822003596/abift-html5052_99p1.htm) of American Beacon Advisors, Inc., American Beacon Funds, American Beacon Institutional Funds Trust, American Beacon Select Funds, and Resolute Investment Distributors, Inc., dated April 7, 2022, is incorporated by reference to Amendment No. 25 to the Initial Registration Statement, filed on May 17, 2022 |
|  | (2) | [Code of Ethics](abift-html5990_ex99p2.htm) of Aristotle Capital Management, LLC, dated October 4, 2022 - (filed herewith) |
|  | (3) | [Code of Ethics](abift-html5990_ex99p3.htm) of Barrow, Hanley, Mewhinney & Strauss, LLC, as revised December 31, 2021 - (filed herewith) |
|  | (4) | [Code of Ethics](https://www.sec.gov/Archives/edgar/data/1700933/000113322822000946/abift-html4419_ex99p4.htm) of Hotchkis and Wiley Capital Management, LLC, dated September 1, 2021, is incorporated by reference to Amendment No. 23 |
|  | (5) | [Code of Ethics](https://www.sec.gov/Archives/edgar/data/1700933/000113322822000946/abift-html4419_ex99p5.htm) and Personal Investment Policy of Lazard Asset Management LLC, is incorporated by reference to Amendment No. 23 |
|  | (6) | [Code of Ethics](abift-html5990_ex99p6.htm) of WCM Investment Management, LLC, dated May 31, 2022 - (filed herewith) |
|  | (7) | [Code of Ethics](https://www.sec.gov/Archives/edgar/data/1700933/000113322821000954/abift-html3341_ex99p7.htm) for Brandywine Global investment Management, LLC, dated October 2020, is incorporated by reference to Amendment No. 18 to the Initial Registration Statement, filed on February 25, 2021 |
| Other Exhibits | Other Exhibits | Other Exhibits |
|  |  | [Powers of Attorney for Trustees of American Beacon Funds, American Beacon Select Funds and American Beacon Institutional Funds Trust, effective as of January 31, 2023 - (filed herewith)](abift-html5990_other.htm) |

---

**Item 29. Persons Controlled by or under Common Control with Registrant**

None.

**Item 30. Indemnification**

*Article VII of the Amended and Restated Declaration of Trust of the Trust provides that:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.2 <u><u>Limitation of Liability.</u></u> No person who is or has been a Trustee or officer of the Trust shall be liable to the Trust, or a Series or a Shareholder for any action or failure to act or for any other reason except solely for his or her own willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office of Trustee or officer, and shall not be liable for errors of judgment or mistakes of fact or law. Subject to the foregoing: (i) the Trustees shall not be responsible or liable in any event for any neglect or wrongdoing of any other person, including any officer, agent, employee, independent contractor or consultant, nor shall any Trustee be responsible for the act or omission of any other Trustee; (ii) the Trustees may rely upon advice of legal counsel or other experts and shall be under no liability for any act or omission in accordance with such advice or for failing to follow such advice; and (iii) the Trustees shall be entitled to rely upon the records of the Trust and upon information, opinions, reports or statements presented by another Trustee or any officer, employee or agent of the Trust, or by any other Person, as to matters reasonably believed to be within such Person's professional or expert competence. The appointment, designation or identification of a Trustee as an expert on any topic or in any area (including an audit committee financial expert), or any other special appointment, designation or identification of a Trustee, shall not impose on that Trustee any standard of care or liability that is greater than that imposed on him as a Trustee in the absence of

**4**

------

the appointment, designation or identification, and no Trustee who has special skills or expertise, or is appointed, designated or identified as aforesaid, shall be held to a higher standard of care by virtue thereof. The Trustees shall not be required to give any bond as such, nor any surety if a bond is obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All Persons extending credit to, contracting with or having any claim against the Trust or any Series shall look only to the assets of the Trust or any applicable Series that such Person extended credit to, contracted with or has a claim against, and neither the Trustees nor the Shareholders, nor any of the Trust's officers, employees or agents, whether past, present or future, shall be personally liable therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Every note, bond, contract, instrument, certificate or undertaking and every other act or thing whatsoever executed or done by or on behalf of the Trust or any Series or the Trustees or officers by any of them in connection with the Trust shall conclusively be deemed to have been executed or done only in or with respect to his or their capacity as Trustee or Trustees, and such Trustee or Trustees shall not be personally liable thereon. At the Trustees' discretion, any note, bond, contract, instrument, certificate or undertaking or any Series made or issued by the Trustees or by any officer or officers may give notice that the Certificate of Trust is on file in the Office of the Delaware Secretary of State and that a limitation on liability of Series exists and such note, bond, contract, instrument, certificate or undertaking may, if the Trustees so determine, recite that the same was executed or made on behalf of the Trust by a Trustee or Trustees in such capacity and not individually or by an officer or officers in such capacity and not individually and that the obligations of such instrument are not binding upon any of them or the Shareholders individually but are binding only on the assets and property of the Trust or a Series thereof, and may contain such further recital as such Person or Persons may deem appropriate. The omission of any such notice or recital shall in no way operate to bind any Trustees, officers or Shareholders individually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.5 <u><u>Indemnification.</u></u>

(a) Subject to the exceptions and limitations contained in subsection (b) below;

(i) every person who is, or has been, a Trustee or an officer or employee of the Trust or is or was serving at the request of the Trust as a trustee, director, officer, employee or agent of another organization in which the Trust has any interest as a shareholder, creditor or otherwise ("Covered Person") shall be indemnified by the Trust and each Series to the fullest extent permitted by law, including the 1940 Act and the rules and regulations thereunder as amended from time to time and interpretations thereunder, against liability and against all expenses reasonably incurred or paid by him or her in connection with any claim, action, suit or proceeding in which he or she becomes involved as a party or otherwise by virtue of his or her being or having been a Covered Person and against amounts paid or incurred by him or her in the settlement thereof.

(ii) Subject to the provisions of this Section 7.5, each Covered Person shall, in the performance of his or her duties, be fully and completely justified and protected with regard to any act or any failure to act resulting from reliance in good faith upon the records, books and accounts of the Trust or, as applicable, any Series, upon an opinion or other advice of legal counsel, or upon reports made or advice given to the Trust or, as applicable, any Series, by any Trustee or any of its officers, employees, or a service provider selected with reasonable care by the Trustees or officers of the Trust, regardless of whether the person rendering such report or advice may also be a Trustee, officer or employee of the Trust or, as applicable, any Series.

(iii) as used herein, the words "claim," "action," "suit" or "proceeding" shall apply to all claims, actions, suits or proceedings (civil, criminal, investigative or other, including appeals), actual or threatened, and the words "liability" and "expenses" shall include, without limitation, attorney's fees, costs, judgments, amounts paid in settlement, fines, penalties and other liabilities whatsoever.

(b) To the extent required under the 1940 Act and the rules and regulations thereunder as amended from time to time and interpretations thereunder, but only to such extent, no indemnification shall be provided hereunder to a Covered Person;

(i) who shall have been adjudicated by a court or body before which the proceeding was brought to be liable to the Trust or its Shareholders by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office; or

(ii) in the event of a settlement, unless there has been a determination that such Covered Person did not engage in willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office: (A) by the court or other body approving the settlement; (B) by at least a majority of those Trustees who are neither Interested Persons of the Trust nor are parties to the matter based upon a review of readily available facts (as opposed to a full trial-type inquiry); or (C) by written opinion of independent legal counsel based upon a review of readily available facts (as opposed to a full trial-type inquiry).

(c) The rights of indemnification herein provided may be insured against by policies maintained by the Trust, shall be severable, shall not be exclusive of or affect any other rights to which any Covered Person may now or hereafter be entitled, shall continue as to a person who has ceased to be such Covered Person and shall inure to the benefit of the heirs, executors and administrators of a Covered Person.

(d) To the extent that any determination is required to be made as to whether a Covered Person engaged in conduct for which indemnification is not provided as described herein, or as to whether there is reason to believe that a Covered Person ultimately will be found entitled to indemnification, the Person or Persons making the determination shall afford the Covered Person a rebuttable presumption that the Covered Person has not engaged in such conduct and that there is reason to believe that the Covered Person ultimately will be found entitled to indemnification.

(e) To the maximum extent permitted by applicable law, including Section 17(h) of the 1940 Act and the rules and regulations thereunder as amended from time to time and interpretations thereunder, expenses in connection with the preparation and presentation of a defense to any claim, action, suit or proceeding of the character described in subsection (a) of this Section 7.5, shall be paid by the Trust or the applicable Series from time to time prior to final disposition thereof upon receipt of an undertaking by or on behalf of such Covered Person that such amount will be paid over by him or her to the Trust or a Series, as applicable, if it is ultimately determined that he or she is not entitled to indemnification under this Section; provided, however, that any such advancement will be made in accordance with any conditions required by the Commission. The advancement of any expenses pursuant to this Section 7.5(e) shall under no circumstances be considered a "loan" under the Sarbanes-Oxley Act of 2002, as amended from time to time, or for any other reason.

**5** 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(f) Any repeal or modification of this Article VII or adoption or modification of any other provision of this Declaration of Trust inconsistent with this Article shall be prospective only to the extent that such repeal or modification would, if applied retrospectively, adversely affect any limitation on the liability of any Covered Person or indemnification or right to advancement of expenses available to any Covered Person with respect to any act or omission that occurred prior to such repeal, modification or adoption.

(g) Notwithstanding any other provision in this Declaration of Trust to the contrary, any liability and/or expense against which any Covered Person is indemnified under this Section 7.5 and any advancement of expenses that any Covered Person is entitled to be paid under Section 7.5(e) shall be deemed to be joint and several obligations of the Trust and each Series, and the assets of the Trust and each Series shall be subject to the claims of any Covered Person therefor under this Article VII; provided that (a) any such liability, expense or obligation may be allocated and charged by the Trustees between or among the Trust and/or any one or more Series (and Classes) in such manner as the Trustees in their sole discretion deem fair and equitable; and (b) the Trustees may determine that any such liability, expense or obligation should not be allocated to one or more Series (and Classes), and such Series or Classes shall not be liable therefor as provided under Section 3.6(a) and (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.6 <u><u>Further Indemnification.</u></u> Nothing contained herein shall affect any rights to indemnification to which any Covered Person or other Person may be entitled by contract or otherwise under law or prevent the Trust from entering into any contract to provide indemnification to any Covered Person or other Person. Without limiting the foregoing, the Trust may, in connection with any transaction permitted by this Declaration of Trust, including the acquisition of assets subject to liabilities or a merger or consolidation pursuant to Section 8.3 hereof, assume the obligation to indemnify any Person including a Covered Person or otherwise contract to provide such indemnification, and such indemnification shall not be subject to the terms of this Article VII unless otherwise required under applicable law.

*Numbered Paragraph 10 of the Management Agreement provides that:*

10. <u><u>Limitation of Liability of the Manager.</u></u> The Manager shall not be liable for any error of judgment or mistake of law or for any loss suffered by the Trust or any Fund in connection with the matters to which this Agreement relate except a loss resulting from the willful misfeasance, bad faith or gross negligence on its part in the performance of its duties or from reckless disregard by it of its obligations and duties under this Agreement. Any person, even though also an officer, partner, employee, or agent of the Manager, who may be or become an officer, Board member, employee or agent of the Trust shall be deemed, when rendering services to the Trust or acting in any business of the Trust, to be rendering such services to or acting solely for the Trust and not as an officer, partner, employee, or agent or one under the control or direction of the Manager even though paid by it. The U.S. federal and state securities laws impose liabilities on persons who act in good faith, and, therefore, nothing in this Agreement is intended to limit the obligations of the Manager under such laws. This Paragraph 10 does not in any manner preempt any separate written indemnification commitments made by the Manager with respect to any matters encompassed by this Agreement.

*Numbered Paragraph 9 of the Investment Advisory Agreement with Aristotle Capital Management, LLC provides that:*

9. <u><u>Liability of Adviser.</u></u> The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement, provided however, the Adviser agrees to indemnify and hold harmless, the Manager, any affiliated person within the meaning of Section 2(a)(3) of the Investment Company Act, and each person, if any, who, within the meaning of Section 15 of the Securities Act, controls the Manager, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Manager or such affiliated person or controlling person may become subject under the securities laws, any other federal or state law, at common law or otherwise, arising out of the Adviser's responsibilities to the Trust which may be based upon any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the Adviser's obligations and/or duties under this Agreement by the Adviser or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the Adviser. The indemnification in this Section shall survive the termination of this Agreement.

*Numbered Paragraph 9 of the Investment Advisory Agreement with Barrow, Hanley, Mewhinney & Strauss, LLC provides that:*

9. <u><u>Liability of Adviser.</u></u> The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement except with respect to claims which occur due to any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.

*Numbered Paragraph 11 of the Investment Advisory Agreement with Brandywine Global Investment Management, LLC provides that:*

11. <u><u>Liability of Advis</u></u>er. The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement except with respect to claims which occur due to any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.

*Numbered Paragraph 9 of the Investment Advisory Agreement with Hotchkis and Wiley Capital Management, LLC provides that:*

9. <u><u>Liability of Adviser.</u></u> No provision of this Agreement shall be deemed to protect the Adviser against any liability to the Trust or its shareholders to which it might otherwise be subject by reason of any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.

*Numbered Paragraph 8 of the Investment Advisory Agreement with Lazard Asset Management LLC provides that:*

8. <u><u>Liability of Adviser.</u></u> No provision of this Agreement shall be deemed to protect the Adviser against any liability to the Trust or its shareholders to which it might otherwise be subject by reason of any willful misfeasance, bad faith, or gross negligence in the performance of its duties or the reckless disregard of its obligations under this Agreement.

*Numbered Paragraph 9 of the Investment Advisory Agreement with WCM Investment Management, LLC provides that:*

9. <u><u>Liability of Adviser.</u></u> The Adviser shall have no liability to the Trust, its shareholders or any third party arising out of or related to this Agreement, provided however, the Adviser agrees to indemnify and hold harmless, the Manager, any affiliated person within the meaning of Section 2(a)(3) of the Investment Company Act, and each person, if any, who, within the meaning of Section 15 of the Securities Act, controls the Manager, against any and

**6**

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all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Manager or such affiliated person or controlling person may become subject under the securities laws, any other federal or state law, at common law or otherwise, arising out of the Adviser's responsibilities to the Trust which may be based upon any willful misfeasance, bad faith, gross negligence, or reckless disregard of, the Adviser's obligations and/or duties under this Agreement by the Adviser or by any of its directors, officers, employees, agents, or any affiliate acting on behalf of the Adviser. The indemnification in this Section shall survive the termination of this Agreement.

*Supplemental Limited Indemnification from the Manager*

ABA shall indemnify and hold harmless Indemnitee, in his or her individual capacity, from and against any cost, asserted claim, liability or expense, including reasonable legal fees (collectively, "Liability") based upon or arising out of (i) any duty of ABA under the Management Agreement (including ABA's failure or omission to perform such duty), and (ii) any liability or claim against Indemnitee arising pursuant to Section 11 of the Securities Act of 1933, as amended, Rule 10b-5 under the Securities Exchange Act of 1934, as amended, and any similar or related federal, state or common law statutes, rules or interpretations. ABA's indemnification obligations under this Letter Agreement shall be limited to civil and administrative claims or proceedings.

**Item 31.** **I. Business and Other Connections of Investment Manager**

**American Beacon Advisors, Inc. (the "Manager")** offers investment management and administrative services to the Registrant. It acts in the same capacity to other investment companies, including those listed below.

Set forth below is information as to any other business, profession, vocation or employment of a substantial nature in which each officer and director of American Beacon Advisors, Inc. is, or at any time during the past two fiscal years has been, engaged for his/her own account or in the capacity of director, officer, employee, partner or trustee.

---

| | |
|:---|:---|
| **Name; Current Position with American Beacon Advisors, Inc.** | **Other Substantial Business and Connections** |
| Sonia L. Bates; Assistant Treasurer | Principal Accounting Officer and Treasurer, American Beacon Funds Complex; Director, Fund and Tax Reporting, Resolute investment Services, Inc.; Assistant Treasurer, American Private Equity Management, LLC; Assistant Treasurer, American Beacon Cayman Transformational Innovation Company, Ltd.; Treasurer, American Beacon Cayman Managed Futures Strategy Fund, Ltd.; Treasurer, American Beacon Cayman TargetRisk Company, Ltd. |
| Rosemary K. Behan; Senior Vice President, Secretary and General Counsel | Vice President, Secretary, and Chief Legal Officer, American Beacon Funds Complex; Secretary, Resolute Investment Holdings, LLC; Secretary, Resolute Topco, Inc.; Secretary, Resolute Acquisition, Inc.; Senior Vice President, Secretary, and General Counsel, Resolute Investment Managers, Inc.; Secretary, Resolute Investment Distributors, Inc.; Senior Vice President, Secretary, and General Counsel, Resolute Investment Services, Inc.; Secretary, American Private Equity Management, L.L.C.; Vice President and Secretary, Continuous Capital, LLC; Secretary, American Beacon Cayman Managed Futures Strategy Fund, Ltd.; Secretary, American Beacon Cayman TargetRisk Company, Ltd. |
| Melinda S. Blackwill; Assistant Treasurer and Controller | Assistant Treasurer and Controller, Resolute Investment Managers, Inc.; Assistant Treasurer and Controller, Resolute Investment Services, Inc.; Assistant Treasurer, Continuous Capital, LLC |
| Paul B. Cavazos; Senior Vice President and Chief Investment Officer | Vice President, American Beacon Funds Complex; Vice President, American Private Equity Management, L.L.C. |
| Christopher L. Collins; Director | Director and Vice President, Resolute Investment Holdings, LLC; Director and Vice President, Resolute Topco, Inc.; Director and Vice President, Resolute Acquisition, Inc.; Director and Vice President, Resolute Investment Managers, Inc.; Director, Resolute Investment Services, Inc.; Manager, American Private Equity Management, L.L.C. |
| Erica B. Duncan; Vice President, Marketing | Vice President, American Beacon Funds Complex; Vice President, Marketing, Resolute Investment Managers, Inc.; Vice President, Marketing, Resolute Investment Services, Inc. |
| Stephen C. Dutton; Director | Director and Vice President, Resolute Investment Holdings, LLC; Director and Vice President, Resolute Topco, Inc.; Director and Vice President, Resolute Acquisition, Inc.; Director and Vice President, Resolute Investment Managers, Inc.; Director, Resolute Investment Services, Inc.; Manager, American Private Equity Management, L.L.C. |
| Rebecca L. Harris; Senior Vice President, Product Management and Corporate Development | Vice President, American Beacon Funds Complex; Senior Vice President, Resolute Investment Managers, Inc.; Senior Vice President, Resolute Investment Services, Inc.; Director and Vice President, Continuous Capital, LLC; Director, National Investment Services of America, LLC; Director, RSW Investments Holdings LLC; Director, Shapiro Capital Management LLC; Director, SSI Investment Management LLC |

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**7** 

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| | |
|:---|:---|
| **Name; Current Position with American Beacon Advisors, Inc.** | **Other Substantial Business and Connections** |
| Melinda G. Heika; Senior Vice President, Treasurer and Chief Financial Officer | Vice President, American Beacon Funds Complex; Treasurer, Resolute Investment Holdings, LLC; Treasurer, Resolute Topco, Inc.; Treasurer, Resolute Acquisition, Inc.; Senior Vice President and Treasurer, Resolute Investment Managers, Inc.; Senior Vice President and Treasurer, Resolute Investment Services, Inc.; Treasurer, American Private Equity Management, L.L.C.; Treasurer, Continuous Capital, LLC; Director and Vice President, American Beacon Cayman Managed Futures Strategy Fund, Ltd.; Director and Vice President, American Beacon Cayman TargetRisk Company, Ltd. |
| Michael D. Jiang; Assistant Secretary and Associate General Counsel | Assistant Secretary, American Beacon Funds Complex; Assistant Secretary and Associate General Counsel, Resolute Investment Managers, Inc.; Assistant Secretary and Associate General Counsel, Resolute Investment Services, Inc.; Assistant Secretary, Resolute Investment Distributors, Inc. |
| Terri L. McKinney; Senior Vice President, Enterprise Services | Vice President, American Beacon Funds Complex; Senior Vice President, Enterprise Services, Resolute Investment Managers, Inc.; Senior Vice President, Enterprise Services, Resolute Investment Services, Inc.; Vice President, Continuous Capital, LLC |
| Takashi B. Moriuchi; Director | Director, Resolute Investment Holdings, LLC; Director, Resolute Topco, Inc.; Director, Resolute Acquisition, Inc.; Director, Resolute Investment Managers, Inc.; Director, Resolute Investment Services, Inc.; Manager, American Private Equity Management, L.L.C. |
| Teresa A. Oxford; Assistant Secretary and Associate General Counsel | Assistant Secretary, American Beacon Funds Complex; Assistant Secretary and Associate General Counsel, Resolute Investment Managers, Inc.; Assistant Secretary and Associate General Counsel, Resolute Investment Services, Inc.; Assistant Secretary, Continuous Capital, LLC |
| Bo Ragsdale; Vice President, Information Technology | Vice President, Information Technology, Resolute Investment Managers, Inc., Vice President, Information Technology, Resolute Investment Services, Inc. |
| Jeffrey K. Ringdahl; Director, President and Chief Executive Officer | President, American Beacon Funds Complex; Director and President, Resolute Investment Holdings, LLC; Director and President, Resolute Topco, Inc.; Director and President, Resolute Acquisition, Inc.; Director, President, and CEO, Resolute Investment Managers, Inc.; Director, President, and CEO, Resolute Investment Distributors, Inc.; Director, President, and CEO, Resolute Investment Services, Inc.; Manager and President, American Private Equity Management, L.L.C.; Director, Shapiro Capital Management LLC; Director and Executive Vice President, Continuous Capital, LLC; Director and President, American Beacon Cayman Managed Futures Strategy Fund, Ltd.; Director and President, American Beacon Cayman TargetRisk Company, Ltd.; Director, RSW Investment Holdings LLC; Manager, SSI Investment Management LLC; Director, National Investment Services of America, LLC |
| Christina E. Sears; Vice President and Chief Compliance Officer | Chief Compliance Officer and Assistant Secretary, American Beacon Funds Complex; Vice President and Chief Compliance Officer, Resolute Investment Managers, Inc.; Vice President, Resolute Investment Distributors, Inc.; Vice President and Chief Compliance Officer, Resolute Investment Services, Inc.; Chief Compliance Officer, American Private Equity Management, L.L.C.; Vice President, Continuous Capital, LLC; Chief Compliance Officer, RSW Investments Holdings LLC |
| Samuel J. Silver; Vice President and Chief Fixed Income Officer | Vice President, American Beacon Funds Complex |
| Claire L. Stervinou; Assistant Treasurer and Corporate Tax Manager | Assistant Treasurer, Resolute Investment Managers, Inc.; Assistant Treasurer, Resolute Investment Services, Inc.; Assistant Treasurer, American Private Equity Management, L.L.C. |
| Gregory Stumm; Senior Vice President | Vice President, American Beacon Funds Complex; Senior Vice President, Resolute Investment Managers, Inc.; Senior Vice President, Resolute Investment Services, Inc.; Senior Vice President, Resolute Investment Distributors, Inc. |

---

The principal address of each of the entities referenced above, other than, National Investment Services of America, LLC, RSW Investment Holdings LLC, Shapiro Capital Management LLC and SSI Investment Management LLC, is 220 East Las Colinas Blvd., Suite 1200, Irving, Texas 75039. The principal address of National Investment Services of America, LLC is 777 E. Wisconsin Avenue, Suite 2350, Milwaukee, Wisconsin 53202. The principal address of RSW Investment Holdings LLC is 47 Maple Street, Suite 304, Summit, New Jersey 07901. The principal address of Shapiro Capital Management LLC is 3060 Peachtree Road NW #1555, Atlanta, Georgia 30305. The principal address of SSI Investment Management LLC is 9440 Santa Monica Blvd, 8th Floor, Beverly Hills, California 90210.

**II. Business and Other Connections of Investment Advisers**

The investment advisers listed below provide investment advisory services to the Trust.

**American Beacon Advisors, Inc.**, 220 East Las Colinas Blvd., Suite 1200, Irving, TX 75039.

**8**

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**Aristotle Capital Management, LLC ("Aristotle")** is a registered investment adviser and is an investment sub-advisor for the American Beacon Diversified Fund. The principal address of Aristotle is 11100 Santa Monica Boulevard, Suite 1700, Los Angeles, CA 90025. Information as to the officers and directors of Aristotle is included in its Form ADV, as filed with the Securities and Exchange Commission ("SEC") (CRD number 109876), and is incorporated herein by reference.

**Barrow, Hanley, Mewhinney & Strauss, LLC ("Barrow")** is a registered investment adviser and is an investment sub-advisor for the American Beacon Diversified Fund, as well as American Beacon Balanced Fund, American Beacon Large Cap Value Fund, American Beacon Mid-Cap Value Fund and American Beacon Small Cap Value Fund, which are series of American Beacon Funds. The principal business address of Barrow is 2200 Ross Avenue, 31st Floor, Dallas, TX 75201-2761. Information as to the officers and directors of Barrow is included in its Form ADV, as filed with the SEC (CRD number 105519), and is incorporated herein by reference.

**Brandywine Global Investment Management, LLC ("Brandywine")** is a registered investment adviser and is an investment sub-advisor for the American Beacon Diversified Fund, as well as American Beacon Small Cap Value Fund, which is a series of American Beacon Funds. The principal address of Brandywine is 1735 Market Street, Suite 1800, Philadelphia, PA 19103. Information as to the officers and directors of Brandywine is included in its Form ADV, as filed with the SEC (CRD number 110783), and is incorporated herein by reference.

**Hotchkis and Wiley Capital Management, LLC ("Hotchkis")** is a registered investment adviser and is an investment sub-advisor for the American Beacon Diversified Fund, as well as American Beacon Balanced Fund, American Beacon Large Cap Value Fund, and American Beacon Small Cap Value Fund, which are series of American Beacon Funds. The principal address of Hotchkis is 601 South Figueroa Street, 39th Floor, Los Angeles, CA 90017-5439. Information as to the officers and directors of Hotchkis is included in its Form ADV, as filed with the SEC (CRD number 114649), and is incorporated herein by reference.

**Lazard Asset Management, LLC ("Lazard")** is a registered investment adviser and is an investment sub-advisor for the American Beacon Diversified Fund, as well as American Beacon International Equity Fund, which is a series of American Beacon Funds. The principal address of Lazard is 30 Rockefeller Plaza, 55th Floor, New York, NY 10112. Information as to the officers and directors of Lazard is included in its Form ADV, as filed with the SEC (CRD number 122836), and is incorporated herein by reference.

**WCM Investment Management LLC ("WCM")** is a registered investment adviser and is an investment sub-advisor for the American Beacon Diversified Fund. The principal address for WCM is 281 Brooks Street, Laguna Beach, CA 92651. Information as to the Officers and Directors of WCM is included in its Form ADV, as filed with the SEC (CRD number 104702) and is incorporated herein by reference.

**Item 32. Principal Underwriter**

Not applicable.

**Item 33. Location of Accounts and Records**

The books and other documents required by Section 31(a) under the Investment Company Act of 1940 are maintained in the physical possession of 1) the Trust's custodian and fund accounting agent at State Street Bank and Trust Company, 225 Franklin Street, Boston, Massachusetts 02110; 2) the Manager at American Beacon Advisors, Inc., 220 East Las Colinas Blvd., Suite 1200, Irving, Texas 75039; 3) the Trust's transfer agent, DST Asset Manager Solutions, Inc., 330 West 9th St., Kansas City, Missouri 64105; 4) Mastercraft, 3021 Wichita Court, Fort Worth, Texas 76140; or 5) the Trust's investment advisers at the addresses listed in Item 31 above.

**Item 34. Management Services**

Not applicable.

**Item 35. Undertakings**

Not applicable.

**9** 

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**SIGNATURES**

Pursuant to the requirements of the Investment Company Act of 1940, as amended, the Registrant has duly caused this Amendment No. 28 to its Registration Statement on Form N-1A to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Irving and the State of Texas, on February 27, 2023.

AMERICAN BEACON INSTITUTIONAL FUNDS TRUST

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| | |
|:---|:---|
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl<br>President |

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**10**

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**EXHIBIT INDEX**

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| | |
|:---|:---|
| **Type** | **Description** |
| 99.(h)(2)(A) | [Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund, and American Beacon Advisors, Inc., dated April 30, 2017](abift-html5990_ex99h2a.htm) |
| 99.(h)(2)(B) | [First Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund, and American Beacon Advisors, Inc., dated May 8, 2018](abift-html5990_ex99h2b.htm) |
| 99.(h)(2)(C) | [Second Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund, and American Beacon Advisors, Inc., dated August 26, 2018](abift-html5990_ex99h2c.htm) |
| 99.(h)(2)(D) | [Third Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., dated March 26, 2019](abift-html5990_ex99h2d.htm) |
| 99.(h)(2)(E) | [Fourth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., dated October 15, 2019](abift-html5990_ex99h2e.htm) |
| 99.(h)(2)(F) | [Fifth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., dated January 13, 2020](abift-html5990_ex99h2f.htm) |
| 99.(h)(2)(G) | [Sixth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective April 30, 2020](abift-html5990_ex99h2g.htm) |
| 99.(h)(2)(H) | [Seventh Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective July 31, 2020](abift-html5990_ex99h2h.htm) |
| 99.(h)(2)(I) | [Eighth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective September 10, 2020](abift-html5990_ex99h2i.htm) |
| 99.(h)(2)(J) | [Ninth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective September 30, 2020](abift-html5990_ex99h2j.htm) |
| 99.(h)(2)(K) | [Tenth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective November 2, 2020](abift-html5990_ex99h2k.htm) |
| 99.(h)(2)(L) | [Eleventh Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust, American Beacon Sound Point Enhanced Income Fund, American Beacon Apollo Total Return Fund and American Beacon Advisors, Inc., effective August 2, 2021](abift-html5990_ex99h2l.htm) |
| 99.(h)(2)(M) | [Twelfth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., effective May 23, 2022](abift-html5990_ex99h2m.htm) |
| 99.(h)(2)(N) | [Thirteenth Amendment to the Sub-Administrative Services Fee Agreement between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., effective January 31, 2023](abift-html5990_ex99h2n.htm) |
| 99.(h)(3)(H) | [Seventh Amendment to Securities Lending Authorization Agreement between the American Beacon Funds, American Beacon Institutional Funds Trust and State Street Bank and Trust Company, dated November 29, 2022](abift-html5990_ex99h3h.htm) |
| 99.(h)(3)(I) | [Eighth Amendment to Securities Lending Authorization Agreement between the American Beacon Funds, American Beacon Institutional Funds Trust and State Street Bank and Trust Company, effective January 31, 2023](abift-html5990_ex99h3i.htm) |
| 99.(p)(2) | [Code of Ethics of Aristotle Capital Management, LLC, dated October 4, 2022](abift-html5990_ex99p2.htm) |
| 99.(p)(3) | [Code of Ethics of Barrow, Hanley, Mewhinney & Strauss, LLC, as revised December 31, 2021](abift-html5990_ex99p3.htm) |
| 99.(p)(6) | [Code of Ethics of WCM Investment Management, LLC, dated May 31, 2022](abift-html5990_ex99p6.htm) |
| Other |  |
|  | [Powers of Attorney for Trustees of American Beacon Funds, American Beacon Select Funds and American Beacon Institutional Funds Trust, effective as of January 31, 2023](abift-html5990_other.htm) |

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**11**

## Ex-99.(H)(2)(A)

**Exhibit 99.(h)(2)(A)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Agreement ("Agreement") is effective as of April 30, 2017, by the American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, and the American Beacon Institutional Funds Trust, a Delaware statutory trust (collectively, the "Trusts"), on behalf of each Fund of a Trust listed on Schedule A hereto, as may be amended from time to time (each, a "Fund"), and American Beacon Advisors, Inc., a Delaware corporation ("Manager") (the "Parties").

WHEREAS, each Trust has entered into a Management Agreement (collectively, the "Management Agreement") with the Manager pursuant to which the Trust has appointed the Manager to serve as the investment adviser and administrator of the Trust; and

WHEREAS, pursuant to the Management Agreement, the Manager has agreed to provide to each Fund, at the Manager's cost and expense, all administrative and clerical services deemed necessary for the Funds and their classes of shares, including the services set forth on Schedule B to the Management Agreement ("Administrative Services"); and

WHEREAS, the Management Agreement authorizes the Manager, at the Manager's expense, to delegate the performance of any Administrative Services to another appropriate party, including an affiliate of the Manager, subject to the approval of the Trust's Board of Trustees ("Board"); and

WHEREAS, following the Board's approval, the Manager has entered into a Sub-Administration Agreement ("Sub-Administration Agreement") with State Street Bank and Trust Company ("State Street") pursuant to which the Manager has delegated to State Street the performance of certain of the Administrative Services (the "Delegated Services"); and

WHEREAS, Section III of the combined fee schedule ("Combined Fee Schedule") to the Custody Agreements each between a Trust and State Street (collectively, the "Custody Agreement") and the Sub-Administration Agreement requires the Manager to pay fees for both the Delegated Services and certain additional services ("Additional Services") that have, in the past been paid for by, and contractually are an obligation of, the Funds under the Custody Agreement; and

WHEREAS, the Parties wish to confirm and memorialize the responsibility of the Manager to pay the costs of the Delegated Services pursuant to the Sub-Administration Agreement and the responsibility of the Funds to reimburse the Manager for the costs of the Additional Services that will be paid by the Manager.

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, it is agreed between the parties hereto as follows:

**1. <u>Payments by the Manager</u>**. The Manager agrees to pay to State Street fees for the (1) the Delegated Services pursuant to the Sub-Administration Agreement; and (2) Additional Services provided to the Funds by State Street, as set forth in Section III of the Combined Fee Schedule.

**2. <u>Reimbursement by the Funds</u>**. The Funds agree to reimburse the Manager the fees for Additional Services set forth in Section III of the Combined Fee Schedule. The Funds will pay the Manager such fees, on a monthly basis within [ ] days of the payment by the Manager of such fees to State Street.

**3. <u>Duration and Termination</u>.** This Agreement shall become effective upon the date set forth in Schedule B and shall continue in effect for the term of the Sub-Administration Agreement, or as otherwise agreed by the parties.

**4. <u>Amendments</u>**. No provision of this Agreement may be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought, and no material amendment of this Agreement as to a given Trust or Fund thereof shall be effective until approved by the Board and such Trust or Fund shareholders to the extent required by the 1940 Act.

**5. <u>Trust and Shareholder Liability</u>**. The Manager is hereby expressly put on notice of the limitation of shareholder liability as set forth in a Trust's Declaration of Trust and agrees that obligations assumed by a Trust pursuant to this Agreement shall be limited in all cases to a Trust and its assets, and if the liability relates to one or more Fund, the obligations hereunder shall be limited to the respective assets of that Fund. The Manager further agrees that it shall not seek satisfaction of any such obligation from the shareholders or any individual shareholder of the Fund, nor from the Trustees or any individual Trustee of a Trust.

**6. <u>Non-Binding Agreement</u>**. This Agreement is executed by each Trust's Trustees and/or officers in their capacities as Trustees and/or officers and the obligations of this Agreement are not binding upon any of them or the shareholders individually; rather, they are binding only upon the assets and property of that Trust.

**7. <u>Entire Agreement</u>**. This Agreement embodies the entire agreement and understanding between the parties hereto, and supersedes all prior amendments and understandings relating to the subject matter hereof.

**8. <u>Governing Law</u>**. This Agreement shall be construed in accordance with the laws of the State of Texas, without giving effect to the conflicts of laws principles thereof, and in accordance with the 1940 Act. To the extent that the applicable laws of the State of Texas conflict with the applicable provisions of the 1940 Act, the latter shall control.

**9. <u>Severability</u>**. If any provision of this Agreement shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of this Agreement shall not be affected thereby. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors.

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed by their officers designated below as of the day and year first above written.

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| | |
|:---|:---|
| AMERICAN BEACON FUNDS<br> AMERICAN BEACON SELECT FUNDS<br> AMERICAN BEACON INSTITUTIONAL FUNDS TRUST | AMERICAN BEACON FUNDS<br> AMERICAN BEACON SELECT FUNDS<br> AMERICAN BEACON INSTITUTIONAL FUNDS TRUST |
| By: | /s/ Gene L. Needles, Jr. |
|  | Gene L. Needles, Jr. |
|  | President |

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| | |
|:---|:---|
| AMERICAN BEACON ADVISORS, INC. | AMERICAN BEACON ADVISORS, INC. |
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | Chief Operating Officer |

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**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE A**

**American Beacon Funds**

American Beacon AHL Managed Futures Strategy Fund

American Beacon Acadian Emerging Markets Managed Volatility Fund

American Beacon Alpha Quant Core Fund

American Beacon Alpha Quant Dividend Fund

American Beacon Alpha Quant Quality Fund

American Beacon Alpha Quant Value Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Growth II Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Crescent Short Duration High Income Fund

American Beacon Flexible Bond Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon GLG Total Return Fund

American Beacon Global Evolution Frontier Markets Income Fund

American Beacon Grosvenor-Long/Short Fund

American Beacon International Equity Fund

American Beacon Ionic Strategy Arbitrage Fund

American Beacon Large Cap Value Fund

American Beacon Mid-Cap Value Fund

American Beacon Numeric Integrated Alpha Fund

American Beacon SGA Global Growth Fund

American Beacon Shapiro Equity Opportunities Fund American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon Sound Point Floating Rate Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon Twenty Four Strategic Income Fund

American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUND**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE B**

**COMBINED FEE SCHEDULE**

**State Street Bank and Trust Company**

**American Beacon Funds ("AB Funds")**

**American Beacon Select Funds ("AB Select Funds")**

**American Beacon Institutional Funds Trust ("AB Institutional Funds")<br> (each a "Fund" and collectively, the "Funds")**

**American Beacon Advisors, Inc. (the "Manager")**

**Confidential Fee Schedule**

**September 6, 2017**

**CUSTODY, FUND ACCOUNTING, AND FUND ADMINISTRATION Services**

Reference is hereby made to (a) the Custodian Agreement dated as of December 1, 1997 by and between State Street Bank and Trust Company ("**State Street**") and AB Funds (the "**AB Funds Custody Agreement**"); (b) the Custodian Agreement dated as of December 31, 1999 by and between State Street and AB Select Funds (the "**AB Select Funds Custody Agreement**"), (c) the Custodian Agreement dated as of March 24, 2017 by and between State Street and the AB Institutional Funds (the "**AB Institutional Funds Custody Agreement**", and collectively, the "**Custody Agreements**", and (d) the Sub-Administration Agreement dated as of September 6, 2017 by and between State Street and the Manager (the "**Sub-Administration Agreement**", and collectively with the Custody Agreements, the "**Agreements**," as the same may be amended, supplemented, restated or otherwise modified from time to time). The parties have entered into this fee schedule ("**Fee Schedule**") effective **April 30, 2017**, except as otherwise expressly noted herein (the "**Effective Date**"), in order to memorialize their agreement on the compensation to be paid by the Funds and the Manager to State Street for the performance of the services specified in the Agreements (the "**Services**"). This Fee Schedule shall be subject to the terms and conditions of the Agreements as if it were a part thereof. Unless otherwise agreed by the parties, this Fee Schedule shall apply to the provision of the Services to each Fund which is a party or is otherwise subject to the Agreements from time to time. In the event of any conflict between the terms of an Agreement and the terms of this Fee Schedule relating to fees, charges, expenses or other financial terms, the terms of this Fee Schedule shall control. Unless otherwise defined, capitalized terms used herein shall have the meaning given to them in the relevant Agreement, as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** **Custody and Fund Accounting** 

In consideration for the provision of custody and fund accounting services by State Street pursuant to the Custody Agreement and the discharge of its other obligations thereunder, each Fund shall be obligated to pay State Street the fees and charges set forth in this Section I, together with any applicable fees and charges payable under Sections VI, VII and VIII below. On a monthly basis, each Fund shall pay a domestic custody and fund accounting fee equal to the Domestic Custody and Fund Accounting Basis Point Fee, plus the applicable Foreign Custody Fee, Transaction

FORM20170324

[Client Name] Funds

Fee Schedule

[Execution Date]

Processing and Activity Based Fees and DDA Charges, plus the applicable Feeder Fees, Pricing Fees, Money Market Fund Services Fees and Other Fund Accounting Charges, in each case as specified below.<sup>1</sup>

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| | |
|:---|:---|
| **1. Domestic Custody and Fund Accounting Basis Point Fee** (Complex Wide/per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net Asset Value of Complex Wide Assets</u> | <u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0 - $17 Billion | &nbsp;&nbsp;1.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$17- $40 Billion | &nbsp;&nbsp;0.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $40 Billion | &nbsp;&nbsp;0.50 |

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| | |
|:---|:---|
| **2. Foreign Custody and Fund Accounting Fee** (per Fund/per month and per transaction)<sup>A</sup> | &nbsp;&nbsp;See <u>Appendix 1</u> |

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| | |
|:---|:---|
| **3. Transaction Processing and Activity Based Fees**<sup>2</sup> <sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Domestic Transaction Processing Fees</u><sup>3</sup> (per transaction) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State Street Repurchase Agreements (Repo) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fund of Fund Trades | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• DTC or Fed Book Entry – Automated/Electronic Trade Instruction | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mortgage Backed Securities Principal and Income Paydowns | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Physical Settlement Processing | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Collateral/Memo Pledging (Fed Book Entry & DTC) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wire Transfers (Fed Wires & Interbank Transfers)<sup>4</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Automated Clearing House (ACH) Transfers<sup>5</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Automated/Electronic Trade Instruction | &nbsp;&nbsp;$25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Manual Trade Instruction (Fax, etc.) | &nbsp;&nbsp;$25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Foreign Exchange executed through State Street Global Markets<sup>6</sup> | &nbsp;&nbsp; No Charge –<br> See Explanatory Note 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Futures<sup>7</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Managed Futures Funds, as identified by the Funds and State Street from time to time* | &nbsp;&nbsp;$10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Options<sup>8</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OTC Derivatives<sup>9</sup> | &nbsp;&nbsp;$25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contracts for Differences<sup>10</sup> o *This fee is applicable with respect to American Beacon Numeric Integrated Alpha Fund (DBK6) effective November 1, 2016 and for all other Funds is applicable as of the effective date.*  | &nbsp;&nbsp;$3.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• TBAs | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All Other Trades | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Manual Trade Surcharge</u> (per transaction)<sup>11</sup> | &nbsp;&nbsp;Waived |

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Information Classification: Limited Access <br>FORM20160805 4

American Beacon Funds

Fee Schedule

September 6, 2017

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Custody Fees</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OTC Swap and Option Reconciliations to Counterparty (monthly/per position)<sup>12</sup> | &nbsp;&nbsp;$45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Checks (per check, per issuance/certification/stop payment) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rule 17f-5 Materials (Digital, CD or Printed) (per Fund/per year for Funds with foreign holdings) | &nbsp;&nbsp;Waived |

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| | |
|:---|:---|
| **4. DDA Charges**<sup>A</sup> |  |
| &nbsp;&nbsp;<u>USD DDA Maintenance Fee</u> (per DDA/per month)<sup>13</sup> | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;<u>Other DDA Charges and Expenses and DDA Limits</u> | &nbsp;&nbsp;See <u>Appendix 2</u> |

---

 

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| | |
|:---|:---|
| **5. Feeder Fees** (per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• First Two Feeders (each) | &nbsp;&nbsp;$12000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Additional Feeders (each) | &nbsp;&nbsp;$9600 |

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| | |
|:---|:---|
| **6. Pricing Fees**<sup>14</sup>,<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Pricing</u> (per position/per month) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Municipal, Government, Corporate, Convertible Bonds, Foreign Bonds, CMOs, CDs | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exchange Traded Options, Futures and Private Placements | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Equities, Preferred Stocks | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loans (Thomson Reuters or Markit Loans) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Fair Valuation/State Street Pricing Service</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funds with 5 or more non-US holdings (per Fund/per year) | &nbsp;&nbsp;$4000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Broker Quotes / Directed Pricing Override (per quote or override) | &nbsp;&nbsp;Waived |

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| | |
|:---|:---|
| **7. Money Market Fund Services Fees** (as applicable)<sup>(Refer to Appendix 3 for Applicable Party)</sup> | &nbsp;&nbsp;See <u>Appendix 3</u> |

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| | |
|:---|:---|
| **8. Other Fund Accounting Charges**<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Class Fund Charge - each additional class (in excess of one) (per year) | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Manager/Sleeves (per sleeve/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Liquid Alternative Funds, as identified by the Funds and State Street from time to time* | &nbsp;&nbsp;$7500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ASC 820 (formerly FAS 157) Reporting (per Fund/per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ASC 815 (formerly FAS 161) Reporting (per Fund/per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• NAV Distributor (per Fund/per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State Street Compliance38 (per Fund/per year) | &nbsp;&nbsp;$800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fund Merger, Consolidation, or other Reorganization (one time charge/per Fund/per event) | &nbsp;&nbsp;$10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Yield Calculations, including SEC Yield (per calculation/per Fund/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Initial | &nbsp;&nbsp;Waived |

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Information Classification: Limited Access <br>FORM20170324 3

American Beacon Funds

Fee Schedule

September 6, 2017

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each additional | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transmission of Data to Morningstar |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Up to 50 funds (per Fund/per year, plus sleeve fee) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funds 51-100 (per Fund/per year, plus sleeve fee) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For each Fund thereafter (per Fund/per year, plus sleeve fee) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Manager/Sleeves (per sleeve/per year) | &nbsp;&nbsp;N/A |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II.** **Loan Services** 

In consideration for the provision of loan services by State Street pursuant to the Custody Agreement and the discharge of its other obligations thereunder, each Fund shall be obligated to pay State Street the fees and charges set forth in this Section III, together with any applicable fees and charges payable under Sections VI, VII and VIII below. On a monthly basis, each Fund shall pay a loan services fee equal to the greater of the Committed Par<sup>15</sup> Fee and the Committed Par Minimum Fee, in each case as specified below.<sup>16</sup>

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| | |
|:---|:---|
| **1. Committed Par Fee** (per Fund/per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Committed Par of Loans</u><sup>17</sup> | <u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0 - $500 Million | &nbsp;&nbsp;3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $500 Million - $1 Billion | &nbsp;&nbsp;2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $1 Billion | 2.0 |
| **Committed Par Minimum Fee** (per Fund/per month) | $3750 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III.** **Fund Administration** 

In consideration for the provision of fund administration services by State Street pursuant to the Sub-Administration Agreement and the discharge of its other obligations thereunder, the Manager shall be obligated to pay State Street the fees and charges set forth in this Section III, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, the Manager shall pay a fund administration fee equal to the greater of the Fund Administration Basis Point Fee and the Fund Administration Minimum Fee, plus any applicable Compliance Monitoring Fee, Fund Reorganization Fees, Other Money Market Fund Services Fees and Other Fund Administration Services Fees, in each case as specified below.<sup>18</sup> The Fund and the Manager agree that, to the extent applicable, a Fund may reimburse the Manager for certain services hereunder as otherwise agreed by the Manager and the Funds. Each Fund is responsible for its own portion of such charges, if any.

 

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| | |
|:---|:---|
| **1. Fund Administration Basis Point Fee** (Complex Wide/per year)<sup>C</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net Asset Value of Complex Wide Assets</u> | <u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First $10 billion | &nbsp;&nbsp;0.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Next $10 billion | &nbsp;&nbsp;0.55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thereafter | 0.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Fee Discount (Complex Wide/per year)</u>** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year 1 Only | &nbsp;&nbsp;$200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year 2 Only | &nbsp;&nbsp;$100000 |
| **2. Fund Administration Minimum Fee** (per Fund/per month)<sup>C</sup> | &nbsp;&nbsp;$4625 |

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Information Classification: Limited Access <br>FORM20170324 4

American Beacon Funds

Fee Schedule

September 6, 2017

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| | |
|:---|:---|
| **3. Compliance Monitoring Fee** (per Fund/per year)<sup>D</sup> | &nbsp;&nbsp;$5500 |

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| | |
|:---|:---|
| **4. Fund Reorganization Fee –** Fund Merger, Consolidation, or other Reorganization (one time charge/per Fund/per event)<sup>A</sup> | &nbsp;&nbsp;$10000 |

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| | |
|:---|:---|
| **5. Other Money Market Fund Services Fees** (as applicable)<sup>(Refer to Appendix 3 for Applicable Party)</sup> | &nbsp;&nbsp;See <u>Appendix 3</u> |

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| | |
|:---|:---|
| **6. Other Fund Administration Services Fees** (as applicable)<sup>(Refer to Appendix 4 for Applicable Party)</sup> | &nbsp;&nbsp;See <u>Appendix 4</u> |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.** **Cross Product Service Fees** <sup>A</sup>

In addition to any other fees, charges or expenses that may be payable under this Fee Schedule, each Fund or the Manager shall be obligated to pay State Street the fees and charges set forth in this Section VI, as applicable, based on usage of the listed product or service in connection with the Services.<sup>19</sup>

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;• SWIFT Messages (per message)<sup>20</sup>(Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• CCO Attestation Report (per Semi-Annual Report/per Fund) (Fund) | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;&nbsp;• SAS99 (audit firm data feeds) (per feed/ per annum) (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Document and Data Archiving/Storage (per Fund, per month) (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• SOC 1 Charges (per Fund, per month)<sup>21</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Dedicated Hardware / Transmission Lines (per Fund/per month)<sup>22</sup> (Fund) | &nbsp;&nbsp; Waived |
| &nbsp;&nbsp;&nbsp;• Data Extracts (Standard) (per extract/per annum)<sup>23</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Data Extracts (Non-standard) (per extract/per annum)<sup>24</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Custom or Manual Reports (per report/per annum)<sup>25</sup> (Fund or Manager as applicable) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Development of standard or customized programming or transmissions<sup>26</sup> (Fund or Manager, as applicable) | &nbsp;&nbsp;$150 per hour |
| &nbsp;&nbsp;&nbsp;• Maintenance of customized programming or transmissions (per year)<sup>27</sup> (Fund or Manager, as applicable) | &nbsp;&nbsp;$4000 |
| &nbsp;&nbsp;&nbsp;• Vendor oversight and/or due diligence requests (including questionnaires) (per request/ questionnaire /visit) (Fund) | &nbsp;&nbsp;Waived |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V.** **Out of Pocket Expenses** <sup>A</sup>

Out-of-pocket expenses incurred by State Street (and by its subcustodians and depositories) on behalf of each Fund in connection with the performance of the Services will be passed through to the Funds or the Manager each month (as designated below), including, but not limited to, the following expenses. The intent of these designations to the Funds or the Manager is to reflect that certain expenses are associated with custody/fund accounting and certain expenses are associated with fund administration services; as noted, certain expenses may be associated with both custody/fund accounting and fund administration services.

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| |
|:---|
| &nbsp;&nbsp;&nbsp;• Subcustodian and Depository Out-of-Pocket Expenses<sup>28</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• Miscellaneous expenses incurred in connection with foreign custody (e.g., stamp duties, registration costs, script fees, special transportation costs, etc.) (Fund) |
| &nbsp;&nbsp;&nbsp;• Fair Value Vendor Charges<sup>29</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• Pricing (Non-standard Vendors)<sup>30</sup> (Fund) |

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Information Classification: Limited Access <br>FORM20170324 5

American Beacon Funds

Fee Schedule

September 6, 2017

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| |
|:---|
| &nbsp;&nbsp;&nbsp;• ADR and GDR charges (Fund) |
| &nbsp;&nbsp;&nbsp;• Stock Exchange Fees (Fund) |
| &nbsp;&nbsp;&nbsp;• DST (agency charges/output fees/underwriting charges) (Fund) |
| &nbsp;&nbsp;&nbsp;• NSCC Settlement Charges (Fund) |
| &nbsp;&nbsp;&nbsp;• Tax Certifications and Form Filing (Fund) |
| &nbsp;&nbsp;&nbsp;• Courier or Overnight Delivery (plus $1 handling fee) (Fund or Manager, as applicable) |
| &nbsp;&nbsp;&nbsp;• Notary and Governmental Charges or Filing Fees (Fund) |
| &nbsp;&nbsp;&nbsp;• Reasonable External Legal Expenses<sup>31</sup> (Fund or Manager, as applicable) |
| &nbsp;&nbsp;&nbsp;• Travel, including transportation, meals and lodging, for Fund Board Meeting attendance and other business related travel at a Fund's request (Fund) |
| &nbsp;&nbsp;&nbsp;• Cost of responding to third party subpoenas and/or regulatory inquires related to the Funds or the Funds' investment adviser(s) or manager(s) (plus a fee of $5,000 per subpoena<sup>32</sup>) (Fund or Manager, as applicable) |

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Out-of-pocket expenses incurred by State Street (and by its subcustodians and depositories) will be billed to the Funds or the Manager based upon actual usage of a service or an allocated or derived charge for the use of the service for the benefit of the Funds or the Manager, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VI.** **Additional Services** <sup>A</sup>

In the event one or more of the Funds or the Manager request that State Street (i) provide new or additional services not otherwise expressly required by the Agreements, (ii) modify or otherwise change the Services (including, but not limited to, the elements and/or frequency of any task or function performed as part of the Services), (iii) change the means or manner in which the Services are provided, (iv) change the location from or to which the Services are performed or (v) support or handle any non-standard, one-off or special activities, State Street shall be entitled to additional compensation (to be mutually agreed with the Fund(s)) as a condition to its agreement to implement any such request. For avoidance of doubt, the terms of this Section VII apply, without limitation, to material changes in the legal or regulatory requirements applicable to one or more of the Funds or material changes in the legal, tax or regulatory elections or status of one or more of the Funds which result in changes to the service requirements of such Fund(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VII.** **Assumptions** 

The Funds and the Manager acknowledge that the overall fee structure set forth in this Fee Schedule has been agreed by the parties based on information provided by the Funds and the Manager and on the basis of certain mutually agreed assumptions which have been set forth in a separate written Projected Business Profile. In the event that the assumptions set forth in the Projected Business Profile prove to be inaccurate, including, but not limited to, if the gross revenue derived from the overall commercial relationship between State Street and the Funds and the Manger is materially lower than what the Parties agreed would be a reasonable assumption at the time the Agreements were executed, the Parties agree to negotiate an adjustment to such fee structure in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VIII.** **Confidentiality** 

This Fee Schedule constitutes confidential information of the Parties under the terms of the Agreements and shall not be disclosed to any legal or natural person except as expressly permitted thereunder.

Information Classification: Limited Access <br>FORM20170324 6

American Beacon Funds

Fee Schedule

September 6, 2017

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IX.** **Payment of Fees** 

The service fees, charges and reimbursable expenses payable under this Fee Schedule by the Funds and the Manager will be invoiced to the Funds and the Manager, as applicable, on a monthly basis and shall be due upon receipt. Beginning thirty days from the date of the invoice, State Street will be entitled to charge interest (at the then applicable overdraft interest rate) on any undisputed amounts that remain unpaid.

Unless otherwise expressly stated, yearly fees will be invoiced in twelve monthly installments as part of the standard invoicing process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X.** **Term** 

This Fee Schedule shall become effective as of the Effective Date, shall remain in effect for an initial period of five (5) years, and shall automatically renew for successive one-year periods from year to year thereafter, unless otherwise modified or terminated in accordance with the terms of the Agreements.

[Remainder of Page Intentionally Blank]

Information Classification: Limited Access <br>FORM20170324 7

American Beacon Funds

Fee Schedule

September 6, 2017

**<u>EXECUTION PAGE</u>**

IN WITNESS WHEREOF, the Parties hereto have executed this Fee Agreement as of the date first written above.

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| | |
|:---|:---|
| **State Street Bank and Trust Company** | **State Street Bank and Trust Company** |
| Name: | Andrew Erickson |
| Title: | Executive Vice President |

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| | |
|:---|:---|
| **American Beacon Funds,**<br> **American Beacon Select Funds**<br> **American Beacon Institutional Funds Trust**<br> With regard to Sections I, II and IV-X | **American Beacon Funds,**<br> **American Beacon Select Funds**<br> **American Beacon Institutional Funds Trust**<br> With regard to Sections I, II and IV-X |
| Name: | Melinda G. Heika |
| Title: | Treasurer |

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| | |
|:---|:---|
| **American Beacon Advisors, Inc.**<br> With regard to Sections III and IV-X | **American Beacon Advisors, Inc.**<br> With regard to Sections III and IV-X |
| Name: | Melinda G. Heika |
| Title: | Chief Financial Officer |

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<sup>A</sup> Each Fund is responsible for its portion of the charges, as applicable

<sup>B</sup> The Manager is responsible for the charge

<sup>C</sup> The Manager is responsible for the charge and will charge back the following amounts to the applicable Fund:

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| | |
|:---|:---|
| Wash Sales | $3,000 per year per single manager Fund |
|  | $5,000 per year per multi-manager Fund |
| Qualified Dividend Income | &nbsp;&nbsp;&nbsp;&nbsp;$500 per year, per Fund |

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<sup>D</sup> The Compliance Monitoring Fee will be charged as follows:

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| | |
|:---|:---|
| Manager | $4,000 per year, per Fund |
| Applicable Fund | &nbsp;&nbsp;&nbsp;&nbsp;$1,500 per year, per Fund |

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Information Classification: Limited Access <br>FORM20170324 8

American Beacon Funds

Fee Schedule

September 6, 2017

**<u>APPENDIX 1</u>**<sup>A</sup>

**Foreign Custody and Fund Accounting Fees**

On a monthly basis, each Fund shall pay a Foreign Custody Fee equal to the Foreign Custody and Fund Accounting Asset Charges, plus the Foreign Custody Transaction Charges\*, in each case as specified below.

*\***<u>Note</u>**: Foreign custody transaction charges apply only to Emerging Markets Funds, as identified by the Funds and State Street from time to time.*

**Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges**<sup>33</sup>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Market** | **Foreign Custody and Fund Accounting**<br> **Asset Charge**<br> **(Basis Points)** | **Foreign**<br> **Custody Transaction Charges** | **Market** | **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | **Foreign Custody Transaction Charges** |
| Albania | 50.0 | $150 | Ghana | 35.0 | $100 |
| Argentina | 30.0 | $125 | Greece | 20.0 | $100 |
| Australia | 3.0 | $25 | Hong Kong | 5.0 | $15 |
| Austria | 5.0 | $25 | Hungary | 25.0 | $60 |
| Bahrain | 50.0 | $150 | Iceland | 35.0 | $50 |
| Bangladesh | 45.0 | $125 | India | 15.0 | $35 |
| Belgium | 5.0 | $30 | Indonesia | 8.0 | $30 |
| Bermuda | 15.0 | $90 | Ireland | 5.0 | $40 |
| Bolivia | 45.0 | $125 | Luxembourg | 35.0 | $100 |
| Bosnia & Herzegovina | 65.0 | $125 | Israel | 15.0 | $40 |
| Botswana | 35.0 | $100 | Italy | 5.0 | $25 |
| Brazil | 18.0 | $25 | Ivory Coast\* | 75.0 | $150 |
| Bulgaria | 50.0 | $100 | Jamaica | 45.0 | $125 |
| Canada | 2.0 | $20 | Japan-Mizuho | 1.5 | $20 |
| Cayman Island | 30.0 | $75 | Jordan | 45.0 | $125 |
| Cedel\Clearstream | 3.0 | $10 | Kazakhstan | 40.0 | $135 |
| Chile | 30.0 | $125 | Kenya | 35.0 | $100 |
| China | 35.0 | $100 | Kuwait | 30.0 | $150 |
| Colombia | 40.0 | $125 | Latvia | 65.0 | $50 |
| Costa Rica | 40.0 | $80 | Lebanon | 40.0 | $100 |
| Croatia | 50.0 | $100 | Lithuania | 35.0 | $50 |
| Cyprus | 45.0 | $125 | Malawi | 60.0 | $200 |
| Czech Republic | 20.0 | $40 | Malaysia | 8.0 | $30 |
| Denmark | 5.0 | $25 | Malta | 30.0 | $150 |
| Ecuador | 35.0 | $100 | Mauritius | 45.0 | $125 |
| Egypt | 15.0 | $40 | Mexico | 2.5 | $20 |
| Estonia | 50.0 | $50 | Morocco | 25.0 | $100 |
| Euroclear | 3.0 | $5 | Namibia | 45.0 | $125 |
| Finland | 5.0 | $45 | Netherlands | 4.0 | $30 |
| France | 2.0 | $25 | New Zealand | 5.0 | $25 |
| Georgia | 50.0 | $200 | Nigeria | 35.0 | $150 |
| Germany | 2.0 | $25 | Norway | 15.0 | $40 |

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\* Ivory Coast includes Benin, Burkina Faso, Mali, Niger, Senegal, Guinea-Bissau and Togo.

Information Classification: Limited Access <br>FORM20170324 1

American Beacon Funds

Fee Schedule

September 6, 2017

**<u>APPENDIX 1</u>**<sup>A</sup>

**Foreign Custody and Fund Accounting Fees**

**- Continued -**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Market** | **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | **Foreign**<br> **Custody Transaction Charges** | **Market** | **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | **Foreign Custody Transaction Charges** |
| Oman | 65.0 | $150 | Sri Lanka | 35.0 | $100 |
| Pakistan | 45.0 | $125 | Srpska | 65.0 | $125 |
| Palestine | 50.0 | $150 | Swaziland | 75.0 | $200 |
| Panama | 30.0 | $125 | Sweden | 5.0 | $40 |
| Peru | 45.0 | $125 | Switzerland | 3.0 | $25 |
| Philippines | 8.0 | $40 | Taiwan | 15.0 | $30 |
| Poland | 15.0 | $40 | Tanzania | 35.0 | $150 |
| Portugal | 10.0 | $50 | Thailand | 2.5 | $20 |
| Puerto Rico | 10.0 | $100 | Trinidad & Tobago | 35.0 | $100 |
| Qatar | 50.0 | $75 | Tunisia | 45.0 | $125 |
| Romania | 75.0 | $100 | Turkey | 12.0 | $30 |
| Russia | 50.0 | $300 | Uganda | 50.0 | $110 |
| Saudi Arabia | 40.0 | $125 | Ukraine | 35.0 | $110 |
| Serbia | 45.0 | $150 | United Arab Emirates | 30.0 | $100 |
| Singapore | 5.0 | $20 | United Kingdom | 0.75 | $5 |
| Slovak Republic | 45.0 | $$75 | Uruguay | 45.0 | $125 |
| Slovenia | 75.0 | $100 | Venezuela | 45.0 | $125 |
| South Africa | 2.5 | $10 | Vietnam | 40.0 | $100 |
| South Korea | 10.0 | $25 | Zambia | 35.0 | $100 |
| Spain<br>| 5.0<br>| $30<br>| Zimbabwe<br>| 35.0<br>| $100<br>|

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Information Classification: Limited Access <br>FORM20170324 2

American Beacon Funds

Fee Schedule

September 6, 2017

**<u>APPENDIX 2</u>**<sup>A</sup>

**Other DDA Charges and Expenses and DDA Limits**

<u>Interest Rates and Charges</u>

Unless State Street notifies the Funds otherwise, demand deposit accounts established and maintained on behalf of the Funds are non-interest bearing accounts. State Street may elect to pay interest on deposit balances at such times and at such rates as it may specify from time to time. Interest rates, if applicable, will vary by currency and market conditions and State Street may cease paying interest, change interest rates, or apply (and adjust) negative interest rates or equivalent charges or fees on designated currencies, from time to time at its sole discretion.

State Street will charge a negative interest rate (as notified from time to time) on the amount by which the end-of-day USD cash balance of any Fund exceeds an amount equal to a designated percentage (currently 5%) of the Fund's (i) monthly average Total Net Assets<sup>34</sup> for the prior calendar month (for custody and accounting clients) or (ii) month-end market value of the Fund's assets<sup>35</sup> (for custody only<sup>36</sup> clients and monthly valued clients), as applicable. A Fund will not be subject to this charge on any day when the ending balance of its USD cash account(s) is less than a specified threshold (currently set at $10 million). State Street may apply, adjust or eliminate the foregoing percentage or deposit balance thresholds from time to time at its sole discretion. Unless otherwise agreed with the Funds, State Street will not impose the foregoing charge in relation to USD deposit balances maintained by U.S. public funds, ERISA plans, Canadian pension clients and Canadian public funds.

Details on applicable interest rates, equivalent charges or fees and applicable percentage or deposit balance thresholds are available upon request.

<u>Overdrafts</u>

Except in accordance with the terms of a committed credit facility established with State Street, Funds are not entitled to overdraw their cash deposit accounts. Cash advances or other extensions of credit are made at the discretion of State Street. In the event of an overdraft which exceeds a designated threshold (currently set at $50,000 for USD overdrafts), State Street will impose an interest charge on the amount of the overdraft during the period an account is overdrawn. The interest rates applicable to overdrafts and the applicable overdraft thresholds (if any) are set on a periodic basis by State Street for each currency at its sole discretion, taking into account market conditions and other relevant commercial considerations. Unless otherwise agreed in writing, overdrafts are repayable in full either (i) on demand or (ii) within five business days, whichever is earlier. Interest charges will be accrued on a daily basis and debited from the applicable deposit account monthly. Details on applicable interest rates and overdraft thresholds are available upon request from your client service representative.

<u>Deposit Limits</u>

Subject to applicable law and regulation, State Street may refuse to accept, limit the amount of or return all or a portion of certain types of cash deposits and/or balances, including non-operational deposits.

Information Classification: Limited Access <br>FORM20170324 1

American Beacon Funds

Fee Schedule

September 6, 2017

**<u>APPENDIX 3</u>**

**Money Market Fund Services**

(as applicable)

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| | |
|:---|:---|
| **1. Money Market Fund Reporting**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Monthly Form N-MFP (per Fund/per year) | &nbsp;&nbsp;$11500 |
| **2. Daily And Weekly Liquid Asset Compliance Testing and Daily Website Disclosures** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Taxable Fund (per Fund/per year) | &nbsp;&nbsp;$10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Tax-Free Fund (per Fund/per year) | &nbsp;&nbsp;$8000 |
| **3. Form N-CR** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• File Form N-CR (per Fund/per filing) | &nbsp;&nbsp;$1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Onboarding Fee (per Fund) | &nbsp;&nbsp;$200 |
| **4. Shadow NAV** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Next Day Shadow NAV (by 10 a.m.) (per Fund/per year, plus feeder/class fee) | &nbsp;&nbsp;$15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Same Day Shadow NAV (by 8 p.m.) (per Fund/per year, plus feeder/class fee) | &nbsp;&nbsp; $15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Daily Pricing Vendor Quote (per vendor quote) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;• Feeder Fund Shadow NAV (per feeder/per year) | &nbsp;&nbsp;$2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Class Shadow NAV (per class/per year) | &nbsp;&nbsp;$500 |

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Information Classification: Limited Access <br>FORM20170324 1

**<u>APPENDIX 4</u>**

**Other Fund Administration Services**

(as applicable)

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| | |
|:---|:---|
| &nbsp;&nbsp;**1. State Street ProNavigator<sup>SM</sup>** <sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Prospectus / Summary Prospectus \* | &nbsp;&nbsp;Per Page |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o The first 2,000 pages | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o All pages over 2,000 pages | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Statement of Additional Information \* | &nbsp;&nbsp;$75 |
| &nbsp;&nbsp;&nbsp;&nbsp;*\*All Funds that are open-end registered investment companies, as of an agreed upon date each year; costs incurred after the transfer of the files to a Fund's financial printer are the responsibility of the Fund.* | &nbsp;&nbsp;&nbsp;&nbsp;*\*All Funds that are open-end registered investment companies, as of an agreed upon date each year; costs incurred after the transfer of the files to a Fund's financial printer are the responsibility of the Fund.* |
| &nbsp;&nbsp;**2. Financial Statement Composition Services**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Composition only | &nbsp;&nbsp;Per Page |
| &nbsp;&nbsp;&nbsp;&nbsp;*Does not include printing costs, mailing costs or filing fees* | &nbsp;&nbsp;TBD |
| &nbsp;&nbsp;**3. CFTC Compliance Testing and Reporting**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• **Initial Margin and Net Notional Compliance Testing** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Daily (per Fund/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o First 1 – 10 Funds | &nbsp;&nbsp;$11000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Remaining Funds | &nbsp;&nbsp;$6000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Weekly (per Fund/per year) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Monthly (per Fund/per year) | &nbsp;&nbsp;$1500 |
| &nbsp;&nbsp;**4. CPO Annual Exclusion Filing** (Rule 4.5) (per Fund/per year)<sup>B</sup> | &nbsp;&nbsp;$250 |
| &nbsp;&nbsp;**5. Other Special Services** (upon reasonable request)<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• **SEC Filing Services** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Form N-14 Filings (per filing) | &nbsp;&nbsp;TBD |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Form 485(a) Filings |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 1 – 5 Funds (per Fund/per filing) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 6 – 10 Funds (per Fund/per filing) | &nbsp;&nbsp;$3500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 11 or more Funds (per Fund/per filing) | &nbsp;&nbsp;$2500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Exemptive Application Filings (per filing) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• **Special Shareholder Meeting Services** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preparation of Form DEF14 and Meeting Materials | &nbsp;&nbsp;$10,000 to $15,000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• **IRS Form 8937** (per Fund/per form) | &nbsp;&nbsp;$1000 |

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American Beacon Funds

Fee Schedule

September 6, 2017

**<u>Explanatory Notes</u>**

****

<sup>1</sup> **Domestic Custody and Fund Accounting Basis Point Fee**. The Domestic Custody and Fund Accounting Basis Point Fee will be calculated by multiplying the net asset value (NAV) of the Funds on the last business day of the month by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30 and then allocating to each Fund its pro rata share based on the Fund's percentage of the Funds' NAV. If a Fund holds foreign assets, the market value of such foreign assets will be subtracted from the NAV of the Fund for purposes of this calculation. The market value of foreign assets used for this calculation will be the amount calculated for purposes of applying the Foreign Custody Asset Charges.

<sup>2</sup> **Transaction Processing Fees**. These are fees charged for processing transactions on behalf of the Funds as a part of the custody services under the Custody Agreement. These Transaction Processing Fees, unless otherwise waived, apply whether a Fund or its third party investment managers entered into such transactions with or through a third party dealer or broker or with or through State Street or one of its affiliates (either acting as a trade counterparty or providing agency execution services). The processing fees are in addition to, and are not to be construed as payments in lieu of, any profit or other compensation (as described in Explanatory Note 6 below) that may be earned by such third party dealer or broker or by State Street or any of its affiliates in connection with such transaction.

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<sup>3</sup> **Definition of Transaction for Billing Purposes; Transaction Count Methodology**. Unless otherwise stated in this Fee Schedule, a transaction includes, without limitation, each buy, sell, reset, exchange, pay down, maturity, assignment, roll, call exercise, warrant exercise, rights exercise, convertible security event, amendment, corporate action or similar investment related action or activity which requires processing by State Street. A complete list of transaction types is available from your client service representative.

The cancel and rebook of any trade at the instruction of the Fund will be treated as two additional transactions (e.g., in addition to the initial trade order) for billing purposes. With respect to TBAs, the initial trade, the subsequent cancel and each pool allocation will be treated as a separate transaction for billing purposes. The initial trade and subsequent cancel will be billed at the TBA rate and each allocation will be billed at the rate applicable to the relevant transaction/asset type. State Street reserves the right to adjust the definition of a billable transaction and adjust the transaction count methodology as new instruments, transaction types or trading techniques emerge.

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<sup>4</sup> **Wire Transfers**. Charges for Wire Transfers apply to all wires sent or received for the account of a Fund, including, but not limited to, wires to or from demand deposit accounts established by State Street to facilitate transfer agency activity of a Fund's third party transfer agent (including Boston Financial Data Services), if applicable.

Information Classification: Limited Access <br>FORM20170324 2

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American Beacon Funds

Fee Schedule

September 6, 2017

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<sup>5</sup> **Automated Clearing House (ACH) Transfers**. Charges for ACH Transfer charges apply to all such transfers sent or received for the account of a Fund, including, but not limited to, ACH transfers to or from demand deposit accounts established by State Street to facilitate transfer agency activity of a Fund's third party transfer agent (including Boston Financial Data Services), if applicable.

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<sup>6</sup> **Principal and Agency Trading Services**. State Street Global Markets, a separate division of State Street, offers principal or "dealer" trading services as well as agency execution services in a variety of asset classes, including most of those described in this schedule. State Street, acting as principal through its treasury division, also enters into repurchase transactions with custody clients. A Fund or its third party investment managers may select State Street to effect principal or agency transactions. These transactions, however, are conducted under contractual or other arrangements that are distinct from State Street's services and obligations under the Agreements, irrespective of whether trade orders are transmitted through the custody or trustee operations of State Street in accordance with the Agreements. When State Street acts as a counterparty (e.g., foreign exchange, OTC derivatives, repurchase transactions, etc.) to a Fund, such transactions are principal transactions and State Street enters into them as a principal and not in a fiduciary, agency or similar capacity (regardless of any other relationships between State Street and the Funds under the Agreements). In connection with such principal or agency execution services, State Street may earn a profit or otherwise receive compensation from the Funds in a variety of forms, including a commission, subscription or click fee, revenue share, spread, mark-up, mark-down, interest, fee or similar amount.

**** 

<sup>7</sup> **Futures**. Each Buy, Short Sell, Buy to Close, Sell to Close, Cancel Buy, Cancel Short Sell, Cancel Buy to Close and Cancel Sell to Close will be treated as a separate transaction for billing purposes.

**** 

<sup>8</sup> **Options**. Each Buy, Write, Buy to Close, Sell to Close, Assignment, Exercise, Cancel Buy, Cancel Write, Cancel Buy To Close, Cancel Sell To Close, Cancel Assignment and Cancel Exercise will be treated as a separate transaction for billing purposes.

**** 

<sup>9</sup> **OTC Derivatives**. OTC Derivatives include OTC Swaps (Bi-lateral or centrally cleared) and OTC Options. Each trade capture for contract creation, amendment, novation or termination will be treated as a separate transaction for billing purposes.

**** 

<sup>10</sup> **Contracts for Differences**. Each buy, sell, reset, close or amendment will be treated as a separate transaction for billing purposes.

**** 

<sup>11</sup> **Manual Trade Surcharge**. This surcharge is payable in addition to the listed transaction fees (including, but not limited to, the transaction fees listed in Appendix 1) and applies to all transactions for which trade instructions are submitted in a manner that requires manual processing by State Street or otherwise does not facilitate straight-through processing.

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<sup>12</sup> **OTC Swap and Option Reconciliations to Counterparty**. Includes reconciliation of position and total market value.

Information Classification: Limited Access <br>FORM20170324 3

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American Beacon Funds

Fee Schedule

September 6, 2017

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<sup>13</sup> **DDA Maintenance Fee**. The DDA Maintenance Fee will not apply to demand deposit accounts established solely for transfer agency activity whether related to a Fund's third party transfer agent or where State Street is performing the transfer agency services.

**** 

<sup>14</sup> **Pricing Fees**. The stated rates are based on use of State Street's standard pricing vendors. The monthly fee will be based on the number of positions held by each Fund at month-end.

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<sup>15</sup> **Committed Par**. The term Committed Par means the amount a lender has agreed to lend to a borrower, irrespective of the amount of outstanding loans under a loan commitment at any time.

**** 

<sup>16</sup> **Committed Par Fee**. The Committed Par Fee will be calculated by multiplying the sum of the Committed Par of each loan serviced for each Fund at month-end by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30.

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<sup>17</sup> **Non-USD Committed Par**. Any Committed Par denominated in a foreign currency (if any) shall be converted to USD for billing purposes using the same currency exchange rates used by the Fund to calculate its NAV.

**** 

<sup>18</sup> **Fund Administration Basis Point Fee**. The Fund Administration Basis Point Fee will be calculated by multiplying the average monthly NAV of the Funds by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30, and then allocating to each Fund its pro rata share based on the Fund's percentage of the Funds' NAV. The average monthly NAV of each Fund will be calculated by taking the sum of the Fund's daily NAVs for each day of the calendar month (for each non-business day, the preceding business day's NAV will be used unless the Fund requests use of a different calculation methodology) and dividing that amount by the number of days in the month. State Street reserves the right to bill on the average monthly *<u>gross</u>* asset value rather than the average monthly NAV of a Fund if the use of leverage (including but not limited to short positions) by the Fund reduces its average monthly NAV and thereby reduces by any material amount the Fund Administration Basis Point Fee that otherwise would be payable in the absence of such leverage.

**** 

<sup>19</sup> **Cross Product Service Fees**. The Cross Product Fees and charges do not constitute out-of-pocket or pass-through expenses (i.e., they include a mark-up and/or overhead cost allocation). Changes to the Cross Product Service Fees and additional fees and charges of a similar nature or type may be implemented by State Street upon 90 day's written notice, subject to agreement between State Street and the Funds.

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<sup>20</sup> **SWIFT**. Stated fee applies to each outbound SWIFT message generated in relation to a Fund by three State Street systems: Securities Management and Control ("SMAC") messages, Global Securities Management and Control ("GSMAC"), and Multicurrency Horizon ("MCH") messages. SMAC and GSMAC SWIFT messages facilitate particular transactions. MCH SWIFT messages communicate cash statements, holding reports and trade confirmations.

Information Classification: Limited Access <br>FORM20170324 4

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American Beacon Funds

Fee Schedule

September 6, 2017

<sup>21</sup> **SOC 1**. Service Organization Controls Report prepared in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization (or any successor, replacement or equivalent report that may be introduced from time to time).

**** 

<sup>22</sup> **Dedicated Hardware / Transmission Lines**. Fee applies if the Funds require use of specific technological hardware that is not otherwise part of State Street's standard technology platform or use of a data transmission connection that is solely dedicated to the Funds. The Fee rate will be agreed after an analysis of the Funds' requirements is completed.

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<sup>23</sup> **Data Extracts (Standard)**. Stated fee applies to the use of any of the 15 (as of March 25, 2015) CTI MDB Standard Outbound data extracts. For a current listing of CTI MDB Standard Outbound data extracts, please contact your client service representative.

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<sup>24</sup> **Data Extracts (Non-standard)**. Stated fee applies to the use of any custom created CTI MDB Outbound data extracts.

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<sup>25</sup> **Custom or Manual Reports (per report)**. Stated fee applies to the one time or recurring creation and distribution of ad-hoc or custom reporting by a State Street employee.

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<sup>26</sup> **Customized Programming or Transmissions**. State Street will charge the stated hourly rate for (i) the creation and implementation of Standard or Non Standard Data Extracts as defined above; (ii) for the implementation of dedicated hardware or transmission lines as defined above; and/or (iii) for the implementation any Fund requested customized programming.

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<sup>27</sup> **Maintenance of Customized Programming or Transmissions**. Stated fee applies to ongoing maintenance required to (i) support necessary infrastructure, information security protocols or data contained in Standard or Non Standard Data Extracts as defined above; (ii) ongoing support for dedicated hardware or transmission lines; and (iii) ongoing support for any Fund requested customized programming.

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<sup>28</sup> **Subcustodian and Depository Out-of-Pocket Expenses**. Subcustodian and Depository Out-of-Pocket Expenses include, without limitation, expenses for account opening, maintenance and administration, courier/delivery, depository charges, funds transfer fees, issuance of nit, late trades, market entrance charges, name change, proxy, registration, rematerialization, remittance, re-registration, stamp duty or tax, stock exchange levies and tax reclaims, among others. A complete list of Subcustodian and Depository Out-of-Pocket Expenses is available from your client service representative.

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<sup>29</sup> **Fair Value Vendor Charges**. At the request and direction of the Funds, State Street will source fair value pricing from the Funds' preferred vendor(s). All amounts invoiced to State Street by such vendors with respect to fair value pricing for the Funds will be charged to the Funds as a reimbursable out-of-pocket expense.

Information Classification: Limited Access <br>FORM20170324 5

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American Beacon Funds

Fee Schedule

September 6, 2017

<sup>30</sup> **Pricing (Non-standard Vendors)**. At the request and direction of the Funds, State Street will source securities and asset pricing from non-standard vendors. All amounts invoiced to State Street by such vendors with respect to non-standard vendor pricing for the Funds will be charged to the Funds as a reimbursable out-of-pocket expense. A complete listing of standard pricing vendors is available from your client service representative.

<sup>31</sup> **Reasonable External Legal Expenses**. Reasonable external legal expenses incurred by State Street will be charged to the Funds as a reimbursable out-of-pocket expense in circumstances permitted by the Agreements or as otherwise agreed by State Street and the Funds.

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<sup>32</sup> **Cost of responding to third party subpoenas and/or regulatory inquires**. The fee of $5,000 is not an out-of-pocket or pass-through expense and is intended to defray internal costs that may be associated with responding to third party subpoenas and/or regulatory inquires. These costs typically include, without limitation, the cost of management and staff time, the use of internal legal, compliance, risk management, business controls, IT and other resources, and data and document retention, storage and production costs, among others. State Street shall have no obligation to account to the Funds for the type or amount of internal costs actually incurred and such costs may be less than (or exceed) the amount of the fee.

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<sup>33</sup> **Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges**. The Foreign Custody and Fund Accounting Asset Charges will be calculated by multiplying the USD market value of the cash, securities and other assets held in custody on behalf of each Fund at month-end by the applicable basis point rate(s) (based on custody location), dividing the result (or the sum of such results) by 360 and multiplying that amount by 30. With respect to assets held outside of the U.S., custody location is determined for billing purposes by reference to the jurisdiction in which State Street, its subcustodian or a Securities System, as the case may be, holds the relevant asset or, if the asset is immobilized or dematerialized and record ownership is maintained only in book-entry form, custody location means the jurisdiction of the Securities System through which State Street maintains the record of the Fund's entitlement to such asset, provided that the custody location for on-book currencies will be the jurisdiction that issues the relevant currency. For purposes of this fee calculation, State Street will utilize the same local currency market values and the same currency exchange rates to convert those values to USD that are used to calculate the NAV of each Fund, provided that the absolute value of any negative cash, security or other asset position will be used. For custody only Funds, State Street will utilize its standard pricing vendors to obtain a market value for each position. If a market value for a position is not available from such vendors, State Street will utilize the same market value for such position that is used by the Fund to calculate its NAV or otherwise value its portfolio, which value will be supplied by the Fund promptly upon request. If following such a request a Fund is unable to provide a market value within five (5) days of month-end, State Street will utilize the market value of the position from the prior month-end and is authorized to continue to use such value until an update is supplied by the Fund or otherwise becomes available from State Street's standard pricing vendors. For illiquid positions, each Fund will be responsible for supplying State Street with a market value as of the date of purchase (or initial custody by State Street) and at least annually thereafter. The Foreign Custody Transaction Charges are fees imposed for processing transactions on behalf of each Fund in the relevant foreign market as part of the custody services.

Information Classification: Limited Access <br>FORM20170324 6

American Beacon Funds

Fee Schedule

September 6, 2017

The Manual Trade Surcharge specified in Section I of the Fee Schedule will also be assessed on a foreign custody transaction, as applicable. The Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges applicable with respect to custody services in any country not listed in Appendix 1 above will be negotiated and agreed by State Street and the Funds prior to investment in such country.

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<sup>34</sup> **Monthly Average Total Net Assets**. The Monthly Average Total Net Assets of each Fund will be calculated by taking the sum of the Fund's daily NAVs for each day of the calendar month (for each non-business day, the preceding business day's NAV will be used unless the Fund requests use of a different calculation methodology) and dividing that amount by the number of days in the month.

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<sup>35</sup> **Month-End Market Value of the Fund's Assets**. For purposes of calculating the month-end market value of a Fund's Assets, State Street will utilize the applicable market value for each position that is used to calculate a Fund's NAV, unless a different pricing methodology is agreed with the Funds, provided that the absolute value of any negative cash, security or other asset position will be used. For custody only Funds, State Street will utilize its standard pricing vendors to obtain a market value for each position. If a market value for a position is not available from such vendors, State Street will utilize the same market value for such position that is used by the Fund to calculate its NAV or otherwise value its portfolio, which value will be supplied by the Fund promptly upon request. If following such a request a Fund is unable to provide a market value within five (5) days of month-end, State Street will utilize the market value of the position from the prior month-end and is authorized to continue to use such value until an update is supplied by the Fund or otherwise becomes available from State Street's standard pricing vendors. For illiquid positions, each Fund will be responsible for supplying State Street with a market value as of the date of purchase (or initial custody by State Street) and at least annually thereafter. State Street generally includes (and may include) the following securities and other assets in the above calculation: (i) physical or tangible assets held by or on behalf of State Street in the U.S., (ii) assets held in uncertificated or book entry form and credited to an account maintained by or on behalf of State Street at any U.S. Subcustodian or U.S. Securities System, (iii) assets registered in State Street's name (or nominee name) or the nominee name of any U.S. Subcustodian or U.S. Securities System, including mutual fund shares or units registered in State Street's name (or that of a nominee or agent) on the books of the relevant fund/transfer agent. As a general rule, State Street will also include short-term and/or cash sweep investment vehicles in such calculation.

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<sup>36</sup> **Custody Only**. Reference to "custody only" refers to any custody relationship with a Fund where State Street does not also provide fund accounting or portfolio accounting services to such Fund.

Information Classification: Limited Access <br>FORM20170324 7

## Ex-99.(H)(2)(B)

**Exhibit 99.(h)(2)(B)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**FIRST AMENDMENT**

**TO**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Amendment to the Sub-Administrative Services Fee Agreement is made as of May 8, 2018 (the "Amendment") by and between American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, and the American Beacon Institutional Funds Trust, a Delaware statutory trust (collectively, the "Trusts"), and American Beacon Advisors, Inc., a Delaware corporation (the "Manager"). Capitalized terms used in this Amendment without definition shall have the respective meanings ascribed to such terms in the Agreement (as defined below).

WHEREAS, the Manager and the Trusts entered into a Sub-Administrative Services Fee Agreement effective as of April 30, 2017 (the "Agreement");

WHEREAS, the Manager and the Trusts wish to add the American Beacon Sound Point Enhanced Income Fund as an additional Trust party to the Agreement and update Schedules A and B to the Agreement as set forth below; and

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Agreement, pursuant to the terms thereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Agreement is amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Schedule A is hereby deleted in its entirety and replaced with the updated Schedule A attached
hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Schedule B is hereby deleted in its entirety and replaced with the updated Schedule B attached
hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as specifically amended hereby, all other terms and conditions of the Agreement shall remain
in full force and effect. This Amendment is incorporated in its entirety into the Agreement, and this Amendment and said Agreement
shall be read and interpreted together as the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective seals to be hereunto affixed, as of the day and year first above written.

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| | |
|:---|:---|
| AMERICAN BEACON FUNDS<br> AMERICAN BEACON SELECT FUNDS<br> AMERICAN BEACON INSTITUTIONAL FUNDS TRUST | AMERICAN BEACON FUNDS<br> AMERICAN BEACON SELECT FUNDS<br> AMERICAN BEACON INSTITUTIONAL FUNDS TRUST |
| By: | /s/ Gene L. Needles, Jr. |
|  | Gene L. Needles, Jr. |
|  | President |

---

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| | |
|:---|:---|
| AMERICAN BEACON ADVISORS, INC. | AMERICAN BEACON ADVISORS, INC. |
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | Chief Operating Officer |

---

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE A**

**American Beacon Funds**

American Beacon AHL Managed Futures Strategy Fund

American Beacon Acadian Emerging Markets Managed Volatility Fund

American Beacon Alpha Quant Core Fund

American Beacon Alpha Quant Dividend Fund

American Beacon Alpha Quant Quality Fund

American Beacon Alpha Quant Value Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Growth II Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Crescent Short Duration High Income Fund

American Beacon Flexible Bond Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon GLG Total Return Fund

American Beacon Global Evolution Frontier Markets Income Fund

American Beacon Grosvenor-Long/Short Fund

American Beacon International Equity Fund

American Beacon Ionic Strategy Arbitrage Fund

American Beacon Large Cap Value Fund

American Beacon Mid-Cap Value Fund

American Beacon Numeric Integrated Alpha Fund

American Beacon SGA Global Growth Fund

American Beacon Shapiro Equity Opportunities Fund American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon Sound Point Floating Rate Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon Twenty Four Strategic Income Fund

American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUND**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

American Beacon Sound Point Enhanced Income Fund

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE B**

**COMBINED FEE SCHEDULE**

**State Street Bank and Trust Company**

**American Beacon Funds ("AB Funds")**

**American Beacon Select Funds ("AB Select Funds")**

**American Beacon Institutional Funds Trust ("AB Institutional Funds")**

**American Beacon Sound Point Enhanced Income Fund ("Sound Point Fund")**

**(each a "Fund" and collectively, the "Funds")**

**American Beacon Advisors, Inc. (the "Manager")**

**Amended and Restated Confidential Fee Schedule**

**Dated May 8, 2018**

**CUSTODY, FUND ACCOUNTING, AND FUND ADMINISTRATION Services**

This Amended and Restated Confidential Fee Schedule amends and restates the fee schedule entered into by the parties hereto dated September 6, 2017. This Amended and Restated Fee Schedule is effective as of April 30, 2017, except as otherwise noted herein (the "Effective Date"), and except that it is effective with respect to the Sound Point Fund as of May 8, 2018.

Reference is hereby made to (a) the Custodian Agreement dated as of December 1, 1997 by and between State Street Bank and Trust Company ("**State Street**") and AB Funds (the "**AB Funds Custody Agreement**"); (b) the Custodian Agreement dated as of December 31, 1999 by and between State Street and AB Select Funds (the "**AB Select Funds Custody Agreement**"), (c) the Custodian Agreement dated as of March 24, 2017 by and between State Street and the AB Institutional Funds (the "**AB Institutional Funds Custody Agreement**"), (d) the Custodian Agreement dated as of May 8, 2018 by and between State Street and the Funds specified therein, (the "**AB Master Custody Agreement**," and collectively, the "**Custody Agreements**"), and (e) the Sub-Administration Agreement dated as of September 6, 2017 by and between State Street and the Manager (the "**Sub-Administration Agreement**", and collectively with the Custody Agreements, the "**Agreements**," as the same may be amended, supplemented, restated or otherwise modified from time to time). The parties have entered into this fee schedule ("**Fee Schedule**") effective (as of the "**Effective Date**"), in order to memorialize their agreement on the compensation to be paid by the Funds and the Manager to State Street for the performance of the services specified in the Agreements (the "**Services**"). This Fee Schedule shall be subject to the terms and conditions of the Agreements as if it were a part thereof. Unless otherwise agreed by the parties, this Fee Schedule shall apply to the provision of the Services to each Fund which is a party or is otherwise subject to the Agreements from time to time. In the event of any conflict between the terms of an Agreement and the terms of this Fee Schedule relating to fees, charges, expenses or other financial terms, the terms of this Fee Schedule shall control. Unless otherwise defined, capitalized terms used herein shall have the meaning given to them in the relevant Agreement, as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** Custody and Fund Accounting

In consideration for the provision of custody and fund accounting services by State Street pursuant to the Custody Agreement and the discharge of its other obligations thereunder, each Fund shall be obligated to pay State Street the fees and charges set forth in this Section I, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, each Fund shall pay a domestic custody and fund accounting fee equal to the Domestic Custody and Fund Accounting Basis Point Fee, plus the applicable Foreign Custody Fee, Transaction Processing and Activity Based Fees and DDA Charges, plus the applicable Feeder Fees, Pricing Fees, Money Market Fund Services Fees and Other Fund Accounting Charges, in each case as specified below.<sup>1</sup>

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| | | |
|:---|:---|:---|
| **1. Domestic Custody and Fund Accounting Basis Point Fee** (Complex Wide/per year)<sup>A</sup> | **1. Domestic Custody and Fund Accounting Basis Point Fee** (Complex Wide/per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net Asset Value of Complex Wide Assets</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net Asset Value of Complex Wide Assets</u> | &nbsp;&nbsp;<u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0 - $17 Billion | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0 - $17 Billion | &nbsp;&nbsp;1.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$17- $40 Billion | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$17- $40 Billion | &nbsp;&nbsp;0.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $40 Billion | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $40 Billion | &nbsp;&nbsp;0.50 |
| **2. Foreign Custody and Fund Accounting Fee** (per Fund/per month and per transaction)<sup>A</sup> | &nbsp;&nbsp;See <u>Appendix 1</u> | &nbsp;&nbsp;See <u>Appendix 1</u> |

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| | |
|:---|:---|
| **3. Transaction Processing and Activity Based Fees**<sup>2A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Domestic Transaction Processing Fees</u><sup>3</sup> (per transaction) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State Street Repurchase Agreements (Repo) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fund of Fund Trades | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• DTC or Fed Book Entry – Automated/Electronic Trade Instruction | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mortgage Backed Securities Principal and Income Paydowns | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Physical Settlement Processing | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Collateral/Memo Pledging (Fed Book Entry & DTC) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wire Transfers (Fed Wires & Interbank Transfers)<sup>4</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Automated Clearing House (ACH) Transfers<sup>5</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Automated/Electronic Trade Instruction | &nbsp;&nbsp;$25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Manual Trade Instruction (Fax, etc.) | &nbsp;&nbsp;$25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Foreign Exchange executed through State Street Global Markets<sup>6</sup> | &nbsp;&nbsp; No Charge –<br> See Explanatory Note 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Futures<sup>7</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Managed Futures Funds, as identified by the Funds and State Street from time to time : effective April 1, 2018* | &nbsp;&nbsp;$5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Options<sup>8</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OTC Derivatives<sup>9</sup> | &nbsp;&nbsp;$25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contracts for Differences<sup>1</sup><sup>0</sup> o *This fee is applicable with respect to American Beacon Numeric Integrated Alpha Fund (DVK6) effective November 1, 2016 and for all other Funds is applicable as of the effective date.*  | &nbsp;&nbsp;$3.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• TBAs | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All Other Trades | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Manual Trade Surcharge</u> (per transaction)<sup>11</sup> | &nbsp;&nbsp;Waived |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Custody Fees</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OTC Swap and Option Reconciliations to Counterparty (monthly/per position)<sup>12</sup> | &nbsp;&nbsp;$45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Checks (per check, per issuance/certification/stop payment) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rule 17f-5 Materials (Digital, CD or Printed) (per Fund/per year for Funds with foreign holdings) | &nbsp;&nbsp;Waived |

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| | |
|:---|:---|
| **4. DDA Charges**<sup>A</sup> |  |
| &nbsp;&nbsp;<u>USD DDA Maintenance Fee</u> (per DDA/per month)<sup>13</sup> | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;<u>Other DDA Charges and Expenses and DDA Limits</u> | &nbsp;&nbsp;See <u>Appendix 2</u> |

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| | |
|:---|:---|
| **5. Feeder Fees** (per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• First Two Feeders (each) | &nbsp;&nbsp;$12000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Additional Feeders (each) | &nbsp;&nbsp;$9600 |

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| | |
|:---|:---|
| **6. Pricing Fees**<sup>14</sup> ,<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Pricing</u> (per position/per month) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Municipal, Government, Corporate, Convertible Bonds, Foreign Bonds, CMOs, CDs | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exchange Traded Options, Futures and Private Placements | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Equities, Preferred Stocks | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loans (Thomson Reuters or Markit Loans) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Fair Valuation/State Street Pricing Service</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funds with 5 or more non-US holdings (per Fund/per year) | &nbsp;&nbsp;$4000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Broker Quotes / Directed Pricing Override (per quote or override) | &nbsp;&nbsp;Waived |

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| | |
|:---|:---|
| **7. Money Market Fund Services Fees** (as applicable)<sup>(Refer to Appendix 3 for Applicable Party)</sup> | &nbsp;&nbsp;See <u>Appendix 3</u> |

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| | |
|:---|:---|
| **8. Other Fund Accounting Charges**<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Class Fund Charge - each additional class (in excess of one) (per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Manager/Sleeves (per sleeve/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Liquid Alternative Funds, as identified by the Funds and State Street from time to time* | &nbsp;&nbsp;$7500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ASC 820 (formerly FAS 157) Reporting (per Fund/per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ASC 815 (formerly FAS 161) Reporting (per Fund/per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• NAV Distributor (per Fund/per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State Street Compliance38 (per Fund/per year) | &nbsp;&nbsp;$800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fund Merger, Consolidation, or other Reorganization (one time charge/per Fund/per event) | &nbsp;&nbsp;$10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Yield Calculations, including SEC Yield (per calculation/per Fund/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Initial | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each additional | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transmission of Data to Morningstar |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Up to 50 funds (per Fund/per year, plus sleeve fee) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funds 51-100 (per Fund/per year, plus sleeve fee) | &nbsp;&nbsp;N/A |

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• For each Fund thereafter (per Fund/per year, plus sleeve fee) N/A <br> • Multi-Manager/Sleeves (per sleeve/per year) N/A <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II.** **Loan Services** 

In consideration for the provision of loan services by State Street pursuant to the Custody Agreement and the discharge of its other obligations thereunder, each Fund shall be obligated to pay State Street the fees and charges set forth in this Section III, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, each Fund shall pay a loan services fee equal to the greater of the Committed Par<sup>15</sup> Fee and the Committed Par Minimum Fee, in each case as specified below.<sup>16</sup>

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| | |
|:---|:---|
| **1. Committed Par Fee** (per Fund/per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Committed Par of Loans</u><sup>17</sup> | &nbsp;&nbsp;<u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0 - $500 Million | &nbsp;&nbsp;3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $500 Million - $1 Billion | &nbsp;&nbsp;2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $1 Billion | &nbsp;&nbsp;2.0 |
| **Committed Par Minimum Fee** (per Fund/per month) | &nbsp;&nbsp;$3750 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III.** **Fund Administration** 

In consideration for the provision of fund administration services by State Street pursuant to the Sub-Administration Agreement and the discharge of its other obligations thereunder, the Manager shall be obligated to pay State Street the fees and charges set forth in this Section III, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, the Manager shall pay a fund administration fee equal to the greater of the Fund Administration Basis Point Fee and the Fund Administration Minimum Fee, plus any applicable Compliance Monitoring Fee, Fund Reorganization Fees, Other Money Market Fund Services Fees and Other Fund Administration Services Fees, in each case as specified below.<sup>18</sup> The Fund and the Manager agree that, to the extent applicable, a Fund may reimburse the Manager for certain services hereunder as otherwise agreed by the Manager and the Funds. Each Fund is responsible for its own portion of such charges, if any.

 

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| | |
|:---|:---|
| **1. Fund Administration Basis Point Fee** (Complex Wide/per year)<sup>C</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net Asset Value of Complex Wide Assets</u> | &nbsp;&nbsp;<u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First $10 billion | &nbsp;&nbsp;0.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Next $10 billion | &nbsp;&nbsp;0.55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thereafter | &nbsp;&nbsp;0.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Fee Discount (Complex Wide/per year)</u>** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year 1 Only | &nbsp;&nbsp;$200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year 2 Only | &nbsp;&nbsp;$100000 |
| **2. Fund Administration Minimum Fee** (per Fund/per month)<sup>C</sup> | &nbsp;&nbsp;$4625 |

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| | |
|:---|:---|
| **3. Compliance Monitoring Fee** (per Fund/per year)<sup>D</sup> | &nbsp;&nbsp;$5500 |

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| | |
|:---|:---|
| **4. Fund Reorganization Fee –** Fund Merger, Consolidation, or other Reorganization (one time charge/per Fund/per event)<sup>A</sup> | &nbsp;&nbsp;$10000 |

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| | |
|:---|:---|
| **5. Other Money Market Fund Services Fees** (as applicable)<sup>(Refer to Appendix 3 for Applicable Party)</sup> | &nbsp;&nbsp;See <u>Appendix 3</u> |

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| | |
|:---|:---|
| **6. Other Fund Administration Services Fees** (as applicable)<sup>(Refer to Appendix 4 for Applicable Party)</sup> | &nbsp;&nbsp;See <u>Appendix 4</u> |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.** **Cross Product Service Fees** <sup>A</sup>

In addition to any other fees, charges or expenses that may be payable under this Fee Schedule, each Fund or the Manager shall be obligated to pay State Street the fees and charges set forth in this Section IV, as applicable, based on usage of the listed product or service in connection with the Services.<sup>19</sup>

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;• SWIFT Messages (per message)<sup>20</sup>(Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• CCO Attestation Report (per Semi-Annual Report/per Fund) (Fund) | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;&nbsp;• SAS99 (audit firm data feeds) (per feed/ per annum) (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Document and Data Archiving/Storage (per Fund, per month) (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• SOC 1 Charges (per Fund, per month)<sup>21</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Dedicated Hardware / Transmission Lines (per Fund/per month)<sup>22</sup> (Fund) | &nbsp;&nbsp; Waived |
| &nbsp;&nbsp;&nbsp;• Data Extracts (Standard) (per extract/per annum)<sup>23</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Data Extracts (Non-standard) (per extract/per annum)<sup>24</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Custom or Manual Reports (per report/per annum)<sup>25</sup> (Fund or Manager as applicable) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Development of standard or customized programming or transmissions<sup>26</sup> (Fund or Manager, as applicable) | &nbsp;&nbsp;$150 per hour |
| &nbsp;&nbsp;&nbsp;• Maintenance of customized programming or transmissions (per year)<sup>27</sup> (Fund or Manager, as applicable) | &nbsp;&nbsp;$4000 |
| &nbsp;&nbsp;&nbsp;• Vendor oversight and/or due diligence requests (including questionnaires) (per request/ questionnaire /visit) (Fund) | &nbsp;&nbsp;Waived |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V.** **Out of Pocket Expenses** <sup>A</sup>

Out-of-pocket expenses incurred by State Street (and by its subcustodians and depositories) on behalf of each Fund in connection with the performance of the Services will be passed through to the Funds or the Manager each month (as designated below), including, but not limited to, the following expenses. The intent of these designations to the Funds or the Manager is to reflect that certain expenses are associated with custody/fund accounting and certain expenses are associated with fund administration services; as noted, certain expenses may be associated with both custody/fund accounting and fund administration services.

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| |
|:---|
| &nbsp;&nbsp;&nbsp;• Subcustodian and Depository Out-of-Pocket Expenses<sup>28</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• Miscellaneous expenses incurred in connection with foreign custody (e.g., stamp duties, registration costs, script fees, special transportation costs, etc.) (Fund) |
| &nbsp;&nbsp;&nbsp;• Fair Value Vendor Charges<sup>29</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• Pricing (Non-standard Vendors)<sup>30</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• ADR and GDR charges (Fund) |
| &nbsp;&nbsp;&nbsp;• Stock Exchange Fees (Fund) |
| &nbsp;&nbsp;&nbsp;• DST (agency charges/output fees/underwriting charges) (Fund) |
| &nbsp;&nbsp;&nbsp;• NSCC Settlement Charges (Fund) |
| &nbsp;&nbsp;&nbsp;• Tax Certifications and Form Filing (Fund) |
| &nbsp;&nbsp;&nbsp;• Courier or Overnight Delivery (plus $1 handling fee) (Fund or Manager, as applicable) |
| &nbsp;&nbsp;&nbsp;• Notary and Governmental Charges or Filing Fees (Fund) |
| &nbsp;&nbsp;&nbsp;• Reasonable External Legal Expenses<sup>31</sup> (Fund or Manager, as applicable) |
| &nbsp;&nbsp;&nbsp;• Travel, including transportation, meals and lodging, for Fund Board Meeting attendance and other business related travel at a Fund's request (Fund) |
| &nbsp;&nbsp;&nbsp;• Cost of responding to third party subpoenas and/or regulatory inquires related to the Funds or the Funds' investment adviser(s) or manager(s) (plus a fee of $5,000 per subpoena<sup>32</sup>) (Fund or Manager, as applicable) |

---

Out-of-pocket expenses incurred by State Street (and by its subcustodians and depositories) will be billed to the Funds or the Manager based upon actual usage of a service or an allocated or derived charge for the use of the service for the benefit of the Funds or the Manager, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VI.** **Additional Services** <sup>A</sup>

In the event one or more of the Funds or the Manager request that State Street (i) provide new or additional services not otherwise expressly required by the Agreements, (ii) modify or otherwise change the Services (including, but not limited to, the elements and/or frequency of any task or function performed as part of the Services), (iii) change the means or manner in which the Services are provided, (iv) change the location from or to which the Services are performed or (v) support or handle any non-standard, one-off or special activities, State Street shall be entitled to additional compensation (to be mutually agreed with the Fund(s)) as a condition to its agreement to implement any such request. For avoidance of doubt, the terms of this Section VII apply, without limitation, to material changes in the legal or regulatory requirements applicable to one or more of the Funds or material changes in the legal, tax or regulatory elections or status of one or more of the Funds which result in changes to the service requirements of such Fund(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VII.** **Assumptions** 

The Funds and the Manager acknowledge that the overall fee structure set forth in this Fee Schedule has been agreed by the parties based on information provided by the Funds and the Manager and on the basis of certain mutually agreed assumptions which have been set forth in a separate written Projected Business Profile. In the event that the assumptions set forth in the Projected Business Profile prove to be inaccurate, including, but not limited to, if the gross revenue derived from the overall commercial relationship between State Street and the Funds and the Manger is materially lower than what the Parties agreed would be a reasonable assumption at the time the Agreements were executed, the Parties agree to negotiate an adjustment to such fee structure in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VIII.** **Confidentiality** 

This Fee Schedule constitutes confidential information of the Parties under the terms of the Agreements and shall not be disclosed to any legal or natural person except as expressly permitted thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IX.** **Payment of Fees** 

The service fees, charges and reimbursable expenses payable under this Fee Schedule by the Funds and the Manager will be invoiced to the Funds and the Manager, as applicable, on a monthly basis and shall be due upon receipt. Beginning thirty days from the date of the invoice, State Street will be entitled to charge interest (at the then applicable overdraft interest rate) on any undisputed amounts that remain unpaid.

Unless otherwise expressly stated, yearly fees will be invoiced in twelve monthly installments as part of the standard invoicing process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X.** **Term** 

This Fee Schedule shall become effective as of the Effective Date, shall remain in effect for an initial period of five (5) years, and shall automatically renew for successive one-year periods from year to year thereafter, unless otherwise modified or terminated in accordance with the terms of the Agreements.

<sup>A</sup> Each Fund is responsible for its portion of the charges, as applicable

<sup>B</sup> The Manager is responsible for the charge

<sup>C</sup> The Manager is responsible for the charge and will charge back the following amounts to the applicable Fund:

Wash Sales $3,000 per year per single manager Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $5,000 per year per multi-manager Fund

Qualified Dividend Income $500 per year, per Fund

<sup>D</sup> The Compliance Monitoring Fee will be charged as follows:

Manager $4,000 per year, per Fund

Applicable Fund $1,500 per year, per Fund

**<u>APPENDIX 1</u>**<sup>A</sup>

**Foreign Custody and Fund Accounting Fees**

On a monthly basis, each Fund shall pay a Foreign Custody Fee equal to the Foreign Custody and Fund Accounting Asset Charges, plus the Foreign Custody Transaction Charges\*, in each case as specified below.

*\***<u>Note</u>**: Foreign custody transaction charges apply only to Emerging Markets Funds, as identified by the Funds and State Street from time to time.*

**Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges**<sup>33</sup>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Market** | **Foreign Custody and Fund Accounting**<br> **Asset Charge**<br> **(Basis Points)** | **Foreign**<br> **Custody Transaction Charges** | **Market** | **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | **Foreign Custody Transaction Charges** |
| Albania | 50.0 | $150 | Ghana | 35.0 | $100 |
| Argentina | 30.0 | $125 | Greece | 20.0 | $100 |
| Australia | 3.0 | $25 | Hong Kong | 5.0 | $15 |
| Austria | 5.0 | $25 | Hungary | 25.0 | $60 |
| Bahrain | 50.0 | $150 | Iceland | 35.0 | $50 |
| Bangladesh | 45.0 | $125 | India | 15.0 | $35 |
| Belgium | 5.0 | $30 | Indonesia | 8.0 | $30 |
| Bermuda<br>| 15.0<br>| $90<br>| Ireland<br>| 5.0<br>| $40<br>|
| Bolivia | 45.0 | $125 | Luxembourg | 35.0 | $100 |
| Bosnia & Herzegovina | 65.0 | $125 | Israel | 15.0 | $40 |
| Botswana | 35.0 | $100 | Italy | 5.0 | $25 |
| Brazil | 18.0 | $25 | Ivory Coast\* | 75.0 | $150 |
| Bulgaria | 50.0 | $100 | Jamaica | 45.0 | $125 |
| Canada | 2.0 | $20 | Japan-Mizuho | 1.5 | $20 |
| Cayman Island | 30.0 | $75 | Jordan | 45.0 | $125 |
| Cedel\Clearstream | 3.0 | $10 | Kazakhstan | 40.0 | $135 |
| Chile | 30.0 | $125 | Kenya | 35.0 | $100 |
| China | 35.0 | $100 | Kuwait | 30.0 | $150 |
| Colombia | 40.0 | $125 | Latvia | 65.0 | $50 |
| Costa Rica | 40.0 | $80 | Lebanon | 40.0 | $100 |
| Croatia | 50.0 | $100 | Lithuania | 35.0 | $50 |
| Cyprus | 45.0 | $125 | Malawi | 60.0 | $200 |
| Czech Republic | 20.0 | $40 | Malaysia | 8.0 | $30 |
| Denmark | 5.0 | $25 | Malta | 30.0 | $150 |
| Ecuador | 35.0 | $100 | Mauritius | 45.0 | $125 |
| Egypt | 15.0 | $40 | Mexico | 2.5 | $20 |
| Estonia | 50.0 | $50 | Morocco | 25.0 | $100 |
| Euroclear | 3.0 | $5 | Namibia | 45.0 | $125 |
| Finland | 5.0 | $45 | Netherlands | 4.0 | $30 |
| France | 2.0 | $25 | New Zealand | 5.0 | $25 |
| Georgia | 50.0 | $200 | Nigeria | 35.0 | $150 |
| Germany | 2.0 | $25 | Norway | 15.0 | $40 |

---

\* Ivory Coast includes Benin, Burkina Faso, Mali, Niger, Senegal, Guinea-Bissau and Togo.

**<u>APPENDIX 1</u>**<sup>A</sup>

 

**Foreign Custody and Fund Accounting Fees**

**- Continued -**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Market** | **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | **Foreign**<br> **Custody Transaction Charges** | **Market** | **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | **Foreign Custody Transaction Charges** |
| Oman | 65.0 | $150 | Sri Lanka | 35.0 | $100 |
| Pakistan | 45.0 | $125 | Srpska | 65.0 | $125 |
| Palestine | 50.0 | $150 | Swaziland | 75.0 | $200 |
| Panama | 30.0 | $125 | Sweden | 5.0 | $40 |
| Peru | 45.0 | $125 | Switzerland | 3.0 | $25 |
| Philippines | 8.0 | $40 | Taiwan | 15.0 | $30 |
| Poland | 15.0 | $40 | Tanzania | 35.0 | $150 |
| Portugal | 10.0 | $50 | Thailand | 2.5 | $20 |
| Puerto Rico | 10.0 | $100 | Trinidad & Tobago | 35.0 | $100 |
| Qatar | 50.0 | $75 | Tunisia | 45.0 | $125 |
| Romania | 75.0 | $100 | Turkey | 12.0 | $30 |
| Russia | 50.0 | $300 | Uganda | 50.0 | $110 |
| Saudi Arabia | 40.0 | $125 | Ukraine | 35.0 | $110 |
| Serbia | 45.0 | $150 | United Arab Emirates | 30.0 | $100 |
| Singapore | 5.0 | $20 | United Kingdom | 0.75 | $5 |
| Slovak Republic | 45.0 | $$75 | Uruguay | 45.0 | $125 |
| Slovenia | 75.0 | $100 | Venezuela | 45.0 | $125 |
| South Africa | 2.5 | $10 | Vietnam | 40.0 | $100 |
| South Korea | 10.0 | $25 | Zambia | 35.0 | $100 |
| Spain<br>| 5.0<br>| $30<br>| Zimbabwe<br>| 35.0<br>| $100<br>|

---

**<u>APPENDIX 2</u>**<sup>A</sup>

**Other DDA Charges and Expenses and DDA Limits**

<u>Interest Rates and Charges</u>

Unless State Street notifies the Funds otherwise, demand deposit accounts established and maintained on behalf of the Funds are non-interest bearing accounts. State Street may elect to pay interest on deposit balances at such times and at such rates as it may specify from time to time. Interest rates, if applicable, will vary by currency and market conditions and State Street may cease paying interest, change interest rates, or apply (and adjust) negative interest rates or equivalent charges or fees on designated currencies, from time to time at its sole discretion.

Details on applicable interest rates, equivalent charges or fees are available upon request.

<u>Overdrafts</u>

Except in accordance with the terms of a committed credit facility established with State Street, Funds are not entitled to overdraw their cash deposit accounts. Cash advances or other extensions of credit are made at the discretion of State Street. In the event of an overdraft which exceeds a designated threshold (currently set at $50,000 for USD overdrafts), State Street will impose an interest charge on the amount of the overdraft during the period an account is overdrawn. The interest rates applicable to overdrafts and the applicable overdraft thresholds (if any) are set on a periodic basis by State Street for each currency at its sole discretion, taking into account market conditions and other relevant commercial considerations. Unless otherwise agreed in writing, overdrafts are repayable in full either (i) on demand or (ii) within five business days, whichever is earlier. Interest charges will be accrued on a daily basis and debited from the applicable deposit account monthly. Details on applicable interest rates and overdraft thresholds are available upon request from your client service representative.

<u>Deposit Limits</u>

Subject to applicable law and regulation, State Street may refuse to accept, limit the amount of or return all or a portion of certain types of cash deposits and/or balances, including non-operational deposits.

**<u>APPENDIX 3</u>**

**Money Market Fund Services**

(as applicable)

---

| | |
|:---|:---|
| **1. Money Market Fund Reporting**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Monthly Form N-MFP (per Fund/per year) | &nbsp;&nbsp;$11500 |
| **2. Daily And Weekly Liquid Asset Compliance Testing and Daily Website Disclosures** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Taxable Fund (per Fund/per year) | &nbsp;&nbsp;$10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Tax-Free Fund (per Fund/per year) | &nbsp;&nbsp;$8000 |
| **3. Form N-CR** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• File Form N-CR (per Fund/per filing) | &nbsp;&nbsp;$1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Onboarding Fee (per Fund) | &nbsp;&nbsp;$200 |
| **4. Shadow NAV** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Next Day Shadow NAV (by 10 a.m.) (per Fund/per year, plus feeder/class fee) | &nbsp;&nbsp;$15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Same Day Shadow NAV (by 8 p.m.) (per Fund/per year, plus feeder/class fee) | &nbsp;&nbsp; $15000<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;• Daily Pricing Vendor Quote (per vendor quote) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;• Feeder Fund Shadow NAV (per feeder/per year) | &nbsp;&nbsp;$2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Class Shadow NAV (per class/per year) | &nbsp;&nbsp;$500 |

---

**<u>APPENDIX 4</u>**

**Other Fund Administration Services**

(as applicable)

---

| | |
|:---|:---|
| **1. State Street ProNavigator<sup>SM</sup>** <sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Prospectus / Summary Prospectus \* | &nbsp;&nbsp;Per Page |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o The first 2,000 pages | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o All pages over 2,000 pages | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Statement of Additional Information \* | &nbsp;&nbsp;$75 |
| &nbsp;&nbsp;&nbsp;&nbsp;*\*All Funds that are open-end registered investment companies, as of an agreed upon date each year; costs incurred after the transfer of the files to a Fund's financial printer are the responsibility of the Fund.* | &nbsp;&nbsp;&nbsp;&nbsp;*\*All Funds that are open-end registered investment companies, as of an agreed upon date each year; costs incurred after the transfer of the files to a Fund's financial printer are the responsibility of the Fund.* |
| **2. Financial Statement Composition Services**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Composition only | &nbsp;&nbsp;Per Page |
| &nbsp;&nbsp;&nbsp;&nbsp;*Does not include printing costs, mailing costs or filing fees* | &nbsp;&nbsp;TBD |
| **3. CFTC Compliance Testing and Reporting**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• **Initial Margin and Net Notional Compliance Testing** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Daily (per Fund/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o First 1 – 10 Funds | &nbsp;&nbsp;$11000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Remaining Funds | &nbsp;&nbsp;$6000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Weekly (per Fund/per year) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Monthly (per Fund/per year) | &nbsp;&nbsp;$1500 |
| **4. CPO Annual Exclusion Filing** (Rule 4.5) (per Fund/per year)<sup>B</sup> | &nbsp;&nbsp;$250 |
| **5. Other Special Services** (upon reasonable request)<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• **SEC Filing Services** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Form N-14 Filings (per filing) | &nbsp;&nbsp;TBD |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Form 485(a) Filings |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 1 – 5 Funds (per Fund/per filing) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 6 – 10 Funds (per Fund/per filing) | &nbsp;&nbsp;$3500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 11 or more Funds (per Fund/per filing) | &nbsp;&nbsp;$2500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Exemptive Application Filings (per filing) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• **Special Shareholder Meeting Services** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preparation of Form DEF14 and Meeting Materials | &nbsp;&nbsp;$10,000 to $15,000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• **IRS Form 8937** (per Fund/per form) | &nbsp;&nbsp;$1000 |

---

<sup>1</sup> **Domestic Custody and Fund Accounting Basis Point Fee**. The Domestic Custody and Fund Accounting Basis Point Fee will be calculated by multiplying the net asset value (NAV) of the Funds on the last business day of the month by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30 and then allocating to each Fund its pro rata share based on the Fund's percentage of the Funds' NAV. If a Fund holds foreign assets, the market value of such foreign assets will be subtracted from the NAV of the Fund for purposes of this calculation. The market value of foreign assets used for this calculation will be the amount calculated for purposes of applying the Foreign Custody Asset Charges.

 

<sup>2</sup> **Transaction Processing Fees**. These are fees charged for processing transactions on behalf of the Funds as a part of the custody services under the Custody Agreement. These Transaction

Processing Fees, unless otherwise waived, apply whether a Fund or its third party investment managers entered into such transactions with or through a third party dealer or broker or with or through State Street or one of its affiliates (either acting as a trade counterparty or providing agency execution services). The processing fees are in addition to, and are not to be construed as payments in lieu of, any profit or other compensation (as described in Explanatory Note 6 below) that may be earned by such third party dealer or broker or by State Street or any of its affiliates in connection with such transaction.

 

<sup>3</sup> **Definition of Transaction for Billing Purposes; Transaction Count Methodology**. Unless otherwise stated in this Fee Schedule, a transaction includes, without limitation, each buy, sell, reset, exchange, pay down, maturity, assignment, roll, call exercise, warrant exercise, rights exercise, convertible security event, amendment, corporate action or similar investment related action or activity which requires processing by State Street. A complete list of transaction types is available from your client service representative.

The cancel and rebook of any trade at the instruction of the Fund will be treated as two additional transactions (e.g., in addition to the initial trade order) for billing purposes. With respect to TBAs, the initial trade, the subsequent cancel and each pool allocation will be treated as a separate transaction for billing purposes. The initial trade and subsequent cancel will be billed at the TBA rate and each allocation will be billed at the rate applicable to the relevant transaction/asset type. State Street reserves the right to adjust the definition of a billable transaction and adjust the transaction count methodology as new instruments, transaction types or trading techniques emerge.

 

<sup>4</sup> **Wire Transfers**. Charges for Wire Transfers apply to all wires sent or received for the account of a Fund, including, but not limited to, wires to or from demand deposit accounts established by State Street to facilitate transfer agency activity of a Fund's third party transfer agent (including Boston Financial Data Services), if applicable.

 

<sup>5</sup> **Automated Clearing House (ACH) Transfers**. Charges for ACH Transfer charges apply to all such transfers sent or received for the account of a Fund, including, but not limited to, ACH transfers to or from demand deposit accounts established by State Street to facilitate transfer agency activity of a Fund's third party transfer agent (including Boston Financial Data Services), if applicable.

 

<sup>6</sup> **Principal and Agency Trading Services**. State Street Global Markets, a separate division of State Street, offers principal or "dealer" trading services as well as agency execution services in a variety of asset classes, including most of those described in this schedule. State Street, acting as principal through its treasury division, also enters into repurchase transactions with custody clients. A Fund or its third party investment managers may select State Street to effect principal or agency transactions. These transactions, however, are conducted under contractual or other arrangements that are distinct from State Street's services and obligations under the Agreements, irrespective of whether trade orders are transmitted through the custody or trustee operations of State Street in accordance with the Agreements. When State Street acts as a counterparty (e.g., foreign exchange, OTC derivatives, repurchase transactions, etc.) to a Fund, such transactions are principal transactions and State Street enters into them as a principal and not in a fiduciary, agency or similar capacity (regardless of any other relationships between State Street and the Funds under the

Agreements). In connection with such principal or agency execution services, State Street may earn a profit or otherwise receive compensation from the Funds in a variety of forms, including a commission, subscription or click fee, revenue share, spread, mark-up, mark-down, interest, fee or similar amount.

 

<sup>7</sup> **Futures**. Each Buy, Short Sell, Buy to Close, Sell to Close, Cancel Buy, Cancel Short Sell, Cancel Buy to Close and Cancel Sell to Close will be treated as a separate transaction for billing purposes.

 

<sup>8</sup> **Options**. Each Buy, Write, Buy to Close, Sell to Close, Assignment, Exercise, Cancel Buy, Cancel Write, Cancel Buy To Close, Cancel Sell To Close, Cancel Assignment and Cancel Exercise will be treated as a separate transaction for billing purposes.

 

<sup>9</sup> **OTC Derivatives**. OTC Derivatives include OTC Swaps (Bi-lateral or centrally cleared) and OTC Options. Each trade capture for contract creation, amendment, novation or termination will be treated as a separate transaction for billing purposes.

 

<sup>10</sup> **Contracts for Differences**. Each buy, sell, reset, close or amendment will be treated as a separate transaction for billing purposes.

 

<sup>11</sup> **Manual Trade Surcharge**. This surcharge is payable in addition to the listed transaction fees (including, but not limited to, the transaction fees listed in Appendix 1) and applies to all transactions for which trade instructions are submitted in a manner that requires manual processing by State Street or otherwise does not facilitate straight-through processing.

 

<sup>12</sup> **OTC Swap and Option Reconciliations to Counterparty**. Includes reconciliation of position and total market value.

 

<sup>13</sup> **DDA Maintenance Fee**. The DDA Maintenance Fee will not apply to demand deposit accounts established solely for transfer agency activity whether related to a Fund's third party transfer agent or where State Street is performing the transfer agency services.

 

<sup>14</sup> **Pricing Fees**. The stated rates are based on use of State Street's standard pricing vendors. The monthly fee will be based on the number of positions held by each Fund at month-end.

 

<sup>15</sup> **Committed Par**. The term Committed Par means the amount a lender has agreed to lend to a borrower, irrespective of the amount of outstanding loans under a loan commitment at any time.

 

<sup>16</sup> **Committed Par Fee**. The Committed Par Fee will be calculated by multiplying the sum of the Committed Par of each loan serviced for each Fund at month-end by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30.

 

<sup>17</sup> **Non-USD Committed Par**. Any Committed Par denominated in a foreign currency (if any) shall be converted to USD for billing purposes using the same currency exchange rates used by the Fund to calculate its NAV.

<sup>18</sup> **Fund Administration Basis Point Fee**. The Fund Administration Basis Point Fee will be calculated by multiplying the average monthly NAV of the Funds by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30, and then allocating to each Fund its pro rata share based on the Fund's percentage of the Funds' NAV. The average monthly NAV of each Fund will be calculated by taking the sum of the Fund's daily NAVs for each day of the calendar month (for each non-business day, the preceding business day's NAV will be used unless the Fund requests use of a different calculation methodology) and dividing that amount by the number of days in the month. State Street reserves the right to bill on the average monthly *<u>gross</u>* asset value rather than the average monthly NAV of a Fund if the use of leverage (including but not limited to short positions) by the Fund reduces its average monthly NAV and thereby reduces by any material amount the Fund Administration Basis Point Fee that otherwise would be payable in the absence of such leverage.

 

<sup>19</sup> **Cross Product Service Fees**. The Cross Product Fees and charges do not constitute out-of-pocket or pass-through expenses (i.e., they include a mark-up and/or overhead cost allocation). Changes to the Cross Product Service Fees and additional fees and charges of a similar nature or type may be implemented by State Street upon 90 day's written notice, subject to agreement between State Street and the Funds.

 

<sup>20</sup> **SWIFT**. Stated fee applies to each outbound SWIFT message generated in relation to a Fund by three State Street systems: Securities Management and Control ("SMAC") messages, Global Securities Management and Control ("GSMAC"), and Multicurrency Horizon ("MCH") messages. SMAC and GSMAC SWIFT messages facilitate particular transactions. MCH SWIFT messages communicate cash statements, holding reports and trade confirmations.

 

<sup>21</sup> **SOC 1**. Service Organization Controls Report prepared in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization (or any successor, replacement or equivalent report that may be introduced from time to time).

 

<sup>22</sup> **Dedicated Hardware / Transmission Lines**. Fee applies if the Funds require use of specific technological hardware that is not otherwise part of State Street's standard technology platform or use of a data transmission connection that is solely dedicated to the Funds. The Fee rate will be agreed after an analysis of the Funds' requirements is completed.

 

<sup>23</sup> **Data Extracts (Standard)**. Stated fee applies to the use of any of the 15 (as of March 25, 2015) CTI MDB Standard Outbound data extracts. For a current listing of CTI MDB Standard Outbound data extracts, please contact your client service representative.

 

<sup>24</sup> **Data Extracts (Non-standard)**. Stated fee applies to the use of any custom created CTI MDB Outbound data extracts.

 

<sup>25</sup> **Custom or Manual Reports (per report)**. Stated fee applies to the one time or recurring creation and distribution of ad-hoc or custom reporting by a State Street employee.

 

<sup>26</sup> **Customized Programming or Transmissions**. State Street will charge the stated hourly rate for (i) the creation and implementation of Standard or Non Standard Data Extracts as defined above; (ii) for the implementation of dedicated hardware or transmission lines as defined above; and/or (iii) for the implementation any Fund requested customized programming.

<sup>27</sup> **Maintenance of Customized Programming or Transmissions**. Stated fee applies to ongoing maintenance required to (i) support necessary infrastructure, information security protocols or data contained in Standard or Non Standard Data Extracts as defined above; (ii) ongoing support for dedicated hardware or transmission lines; and (iii) ongoing support for any Fund requested customized programming.

 

<sup>28</sup> **Subcustodian and Depository Out-of-Pocket Expenses**. Subcustodian and Depository Out-of-Pocket Expenses include, without limitation, expenses for account opening, maintenance and administration, courier/delivery, depository charges, funds transfer fees, issuance of nit, late trades, market entrance charges, name change, proxy, registration, rematerialization, remittance, re-registration, stamp duty or tax, stock exchange levies and tax reclaims, among others. A complete list of Subcustodian and Depository Out-of-Pocket Expenses is available from your client service representative.

 

<sup>29</sup> **Fair Value Vendor Charges**. At the request and direction of the Funds, State Street will source fair value pricing from the Funds' preferred vendor(s). All amounts invoiced to State Street by such vendors with respect to fair value pricing for the Funds will be charged to the Funds as a reimbursable out-of-pocket expense.

<sup>30</sup> **Pricing (Non-standard Vendors)**. At the request and direction of the Funds, State Street will source securities and asset pricing from non-standard vendors. All amounts invoiced to State Street by such vendors with respect to non-standard vendor pricing for the Funds will be charged to the Funds as a reimbursable out-of-pocket expense. A complete listing of standard pricing vendors is available from your client service representative.

<sup>31</sup> **Reasonable External Legal Expenses**. Reasonable external legal expenses incurred by State Street will be charged to the Funds as a reimbursable out-of-pocket expense in circumstances permitted by the Agreements or as otherwise agreed by State Street and the Funds.

 

<sup>32</sup> **Cost of responding to third party subpoenas and/or regulatory inquires**. The fee of $5,000 is not an out-of-pocket or pass-through expense and is intended to defray internal costs that may be associated with responding to third party subpoenas and/or regulatory inquires. These costs typically include, without limitation, the cost of management and staff time, the use of internal legal, compliance, risk management, business controls, IT and other resources, and data and document retention, storage and production costs, among others. State Street shall have no obligation to account to the Funds for the type or amount of internal costs actually incurred and such costs may be less than (or exceed) the amount of the fee.

 

<sup>33</sup> **Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges**. The Foreign Custody and Fund Accounting Asset Charges will be calculated by multiplying the USD market value of the cash, securities and other assets held in custody on behalf of each Fund at month-end by the applicable basis point rate(s) (based on custody location), dividing the result (or the sum of such results) by 360 and multiplying that amount by 30. With respect to assets held outside of the U.S., custody location is determined for billing purposes by reference to the jurisdiction in which State Street, its subcustodian or a Securities System, as the case may be, holds the relevant asset or, if the asset is immobilized or dematerialized and record ownership is maintained only in book-entry form, custody location means the jurisdiction of the Securities System through which State Street maintains the record of the Fund's entitlement to such asset, provided that the custody location for on-book currencies will be the jurisdiction that issues the relevant currency. For purposes of this fee calculation, State Street will utilize the same local currency market values and the same currency exchange rates to convert those values to USD that are used to calculate the

NAV of each Fund, provided that the absolute value of any negative cash, security or other asset position will be used. For custody only Funds, State Street will utilize its standard pricing vendors to obtain a market value for each position. If a market value for a position is not available from such vendors, State Street will utilize the same market value for such position that is used by the Fund to calculate its NAV or otherwise value its portfolio, which value will be supplied by the Fund promptly upon request. If following such a request a Fund is unable to provide a market value within five (5) days of month-end, State Street will utilize the market value of the position from the prior month-end and is authorized to continue to use such value until an update is supplied by the Fund or otherwise becomes available from State Street's standard pricing vendors. For illiquid positions, each Fund will be responsible for supplying State Street with a market value as of the date of purchase (or initial custody by State Street) and at least annually thereafter. The Foreign Custody Transaction Charges are fees imposed for processing transactions on behalf of each Fund in the relevant foreign market as part of the custody services. The Manual Trade Surcharge specified in Section I of the Fee Schedule will also be assessed on a foreign custody transaction, as applicable. The Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges applicable with respect to custody services in any country not listed in Appendix 1 above will be negotiated and agreed by State Street and the Funds prior to investment in such country.

**Custody Only.** Reference to "custody only" refers to any custody relationship with a Fund where State Street does not also provide fund accounting or portfolio accounting services to such Fund.

## Ex-99.(H)(2)(C)

**Exhibit 99.(h)(2)(C)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**SECOND AMENDMENT** 

**TO**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Amendment to the Sub-Administrative Services Fee Agreement is made as of August 26, 2018 (the "Amendment") by and between American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, the American Beacon Institutional Funds Trust, a Delaware statutory trust, and the American Beacon Sound Point Enhanced Income Fund, a Delaware statutory trust (collectively, the "Trusts"), and American Beacon Advisors, Inc., a Delaware corporation (the "Manager"). Capitalized terms used in this Amendment without definition shall have the respective meanings ascribed to such terms in the Agreement (as defined below).

WHEREAS, the Manager and the Trusts entered into a Sub-Administrative Services Fee Agreement effective as of April 30, 2017 (the "Agreement");

WHEREAS, the Manager and the Trusts wish to add the American Beacon Apollo Total Return Fund as an additional Trust party to the Agreement and update Schedules A and B to the Agreement as set forth below; and

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Agreement, pursuant to the terms thereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Agreement is amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Schedule A is hereby deleted in its entirety and replaced with the updated
Schedule A attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Schedule B is hereby deleted in its entirety and replaced with the updated
Schedule B attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as specifically amended hereby, all other terms and conditions of
the Agreement shall remain in full force and effect. This Amendment is incorporated in its entirety into the Agreement, and this
Amendment and said Agreement shall be read and interpreted together as the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective seals to be hereunto affixed, as of the day and year first above written.

---

| | |
|:---|:---|
| AMERICAN BEACON FUNDS<br> AMERICAN BEACON SELECT FUNDS<br> AMERICAN BEACON INSTITUTIONAL FUNDS TRUST<br> AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND<br> AMERICAN BEACON APOLLO TOTAL RETURN FUND | AMERICAN BEACON FUNDS<br> AMERICAN BEACON SELECT FUNDS<br> AMERICAN BEACON INSTITUTIONAL FUNDS TRUST<br> AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND<br> AMERICAN BEACON APOLLO TOTAL RETURN FUND |
| By: | /s/ Gene L. Needles, Jr. |
|  | Gene L. Needles, Jr. |
|  | President |

---

---

| | |
|:---|:---|
| AMERICAN BEACON ADVISORS, INC. | AMERICAN BEACON ADVISORS, INC. |
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President and Chief Operating Officer |

---

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

**SCHEDULE A**

**AMERICAN BEACON FUNDS**

American Beacon AHL Managed Futures Strategy Fund

American Beacon Acadian Emerging Markets Managed Volatility Fund

American Beacon Alpha Quant Core Fund

American Beacon Alpha Quant Dividend Fund

American Beacon Alpha Quant Quality Fund

American Beacon Alpha Quant Value Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Growth Il Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Crescent Short Duration High Income Fund

American Beacon Flexible Bond Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon GLG Total Return Fund

American Beacon Global Evolution Frontier Markets Income Fund

American Beacon Grosvenor-Long/Short Fund

American Beacon International Equity Fund

American Beacon Ionic Strategy Arbitrage Fund

American Beacon Large Cap Value Fund

American Beacon Mid-Cap Value Fund

American Beacon Numeric Integrated Alpha Fund

American Beacon SGA Global Growth Fund

American Beacon Shapiro Equity Opportunities Fund American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon Sound Point Floating Rate Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon Twenty Four Strategic Income Fund American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUND**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

American Beacon Sound Point Enhanced Income Fund

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

American Beacon Apollo Total Return Fund

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

**SCHEDULE B**

**COMBINED FEE SCHEDULE**

**State Street Bank and Trust Company**

**AMERICAN BEACON FUNDS ("AB FUNDS")**

**AMERICAN BEACON SELECT FUNDS ("AB SELECT FUNDS")**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST ("AB INSTITUTIONAL FUNDS")**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND ("SOUND POINT FUND")**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND ("APOLLO FUND")**

**(EACH A "FUND" AND COLLECTIVELY, THE "FUNDS")**

**AMERICAN BEACON ADVISORS, INC. (THE "MANAGER")**

**AMENDED AND RESTATED CONFIDENTIAL FEE SCHEDULE**

**DATED AUGUST 26, 2018**

**CUSTODY, FUND ACCOUNTING, AND FUND ADMINISTRATION SERVICES**

This Amended and Restated Confidential Fee Schedule amends and restates the fee schedule entered into by the parties hereto dated May 8, 2018/. This Amended and Restated Fee Schedule is effective as of April 30, 2017, except as otherwise noted herein (the **"Effective Date"**), and except that it is effective with respect to the Sound Point Fund as of May 8, 2018 and the Apollo Fund as of August 26, 2018.

Reference is hereby made to (a) the Custodian Agreement dated as of December 1, 1997 by and between State Street Bank and Trust Company (**"State Street"**) and AB Funds (the **"AB Funds Custody Agreement"**); (b) the Custodian Agreement dated as of December 31, 1999 by and between State Street and AB Select Funds (the **"AB Select Funds Custody Agreement"**), (c) the Custodian Agreement dated as of March 24, 2017 by and between State Street and the AB Institutional Funds (the **"AB Institutional Funds Custody Agreement"**); (d) the Custodian Agreement dated as of May 8, 2018 by and between State Street and the Funds specified therein, (the **"AB Master Custody Agreement,"** and collectively, the **"Custody Agreements"**); and (e) the Sub-Administration Agreement dated as of September 6, 2017 by and between State Street and the Manager (the **"Sub-Administration Agreement"**, and collectively with the Custody Agreements, the "**Agreements,"** as the same may be amended, supplemented, restated or otherwise modified from time to time). The parties have entered into this fee schedule (**"Fee Schedule"**) effective as of the Effective Date, in order to memorialize their agreement on the compensation to be paid by the Funds and the Manager to State Street for the performance of the services specified in the Agreements (the **"Services"**). This Fee Schedule shall be subject to the terms and conditions of the Agreements as if it were a part thereof. Unless otherwise agreed by the parties, this Fee Schedule shall apply to the provision of the Services to each Fund which is a party or is otherwise subject to the Agreements from time to time. In the event of any conflict between the terms of an Agreement and the terms of this Fee Schedule relating to fees, charges, expenses or other financial terms, the terms of this Fee Schedule shall control. Unless otherwise defined, capitalized terrns used herein shall have the meaning given to them in the relevant Agreement, as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** Custody and Fund Accounting

In consideration for the provision of custody and fund accounting services by State Street pursuant to the Custody Agreement and the discharge of its other obligations thereunder, each Fund shall be obligated to pay State Street the fees and charges set forth in this Section I, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, each Fund shall pay a domestic custody and fund accounting fee equal to the Domestic Custody and Fund Accounting Basis Point Fee, plus the applicable Foreign Custody Fee, Transaction Processing and Activity Based Fees and DDA Charges, plus the applicable Feeder Fees, Pricing Fees, Money Market

Fund Services Fees and Other Fund Accounting Charges, in each case as specified below.<sup>1</sup>

---

| | | | |
|:---|:---|:---|:---|
| **1. Domestic Custody and Fund Accounting Basis Point Fee** (Complex Wide/per year)<sup>A</sup> | **1. Domestic Custody and Fund Accounting Basis Point Fee** (Complex Wide/per year)<sup>A</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net Asset Value of Complex Wide Assets</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net Asset Value of Complex Wide Assets</u> | <u>Annual Basis Point Rate</u> | <u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0 - $17 Billion | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0 - $17 Billion | 1.00 | 1.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$17- $40 Billion | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$17- $40 Billion | 0.75 | 0.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $40 Billion | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $40 Billion | 0.50 | 0.50 |
| **2. Foreign Custody and Fund Accounting Fee** (per Fund/per month and per transaction)<sup>A</sup> | See <u>Appendix 1</u> | See <u>Appendix 1</u> | See <u>Appendix 1</u> |
| **3. Transaction Processing and Activity Based Fees<sup>2</sup>**<sup>A</sup> | **3. Transaction Processing and Activity Based Fees<sup>2</sup>**<sup>A</sup> | **3. Transaction Processing and Activity Based Fees<sup>2</sup>**<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Domestic Transaction Processing Fees</u><sup>3</sup> (per transaction) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Domestic Transaction Processing Fees</u><sup>3</sup> (per transaction) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Domestic Transaction Processing Fees</u><sup>3</sup> (per transaction) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State Street Repurchase Agreements (Repo) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State Street Repurchase Agreements (Repo) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State Street Repurchase Agreements (Repo) | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fund of Fund Trades | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fund of Fund Trades | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fund of Fund Trades | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• DTC or Fed Book Entry – Automated/Electronic Trade Instruction | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• DTC or Fed Book Entry – Automated/Electronic Trade Instruction | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• DTC or Fed Book Entry – Automated/Electronic Trade Instruction | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mortgage Backed Securities Principal and Income Paydowns | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mortgage Backed Securities Principal and Income Paydowns | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mortgage Backed Securities Principal and Income Paydowns | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Physical Settlement Processing | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Physical Settlement Processing | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Physical Settlement Processing | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Collateral/Memo Pledging (Fed Book Entry & DTC) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Collateral/Memo Pledging (Fed Book Entry & DTC) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Collateral/Memo Pledging (Fed Book Entry & DTC) | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wire Transfers (Fed Wires & Interbank Transfers)<sup>4</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wire Transfers (Fed Wires & Interbank Transfers)<sup>4</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wire Transfers (Fed Wires & Interbank Transfers)<sup>4</sup> | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Automated Clearing House (ACH) Transfers<sup>5</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Automated Clearing House (ACH) Transfers<sup>5</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Automated Clearing House (ACH) Transfers<sup>5</sup> | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Automated/Electronic Trade Instruction | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Automated/Electronic Trade Instruction | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Automated/Electronic Trade Instruction | $25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Manual Trade Instruction (Fax, etc.) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Manual Trade Instruction (Fax, etc.) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Manual Trade Instruction (Fax, etc.) | $25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Foreign Exchange executed through State Street Global Markets<sup>6</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Foreign Exchange executed through State Street Global Markets<sup>6</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Foreign Exchange executed through State Street Global Markets<sup>6</sup> | No Charge –<br> See Explanatory Note 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Futures<sup>7</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Futures<sup>7</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Futures<sup>7</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Managed Futures Funds, as identified by the Funds and State Street from time to time : effective April 1, 2018* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Managed Futures Funds, as identified by the Funds and State Street from time to time : effective April 1, 2018* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Managed Futures Funds, as identified by the Funds and State Street from time to time : effective April 1, 2018* | $5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Options<sup>8</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Options<sup>8</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Options<sup>8</sup> | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OTC Derivatives<sup>9</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OTC Derivatives<sup>9</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OTC Derivatives<sup>9</sup> | $25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contracts for Differences<sup>10</sup> o *This fee is applicable with respect to American Beacon Numeric Integrated Alpha Fund (DVK6) effective November 1, 2016 and for all other Funds is applicable as of the effective date.*  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contracts for Differences<sup>10</sup> o *This fee is applicable with respect to American Beacon Numeric Integrated Alpha Fund (DVK6) effective November 1, 2016 and for all other Funds is applicable as of the effective date.*  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contracts for Differences<sup>10</sup> o *This fee is applicable with respect to American Beacon Numeric Integrated Alpha Fund (DVK6) effective November 1, 2016 and for all other Funds is applicable as of the effective date.*  | $3.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• TBAs | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• TBAs | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• TBAs | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All Other Trades | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All Other Trades | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All Other Trades | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Manual Trade Surcharge</u> (per transaction)<sup>11</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Manual Trade Surcharge</u> (per transaction)<sup>11</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Manual Trade Surcharge</u> (per transaction)<sup>11</sup> | Waived |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Custody Fees</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OTC Swap and Option Reconciliations to Counterparty (monthly/per position)<sup>12</sup> | $45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Checks (per check, per issuance/certification/stop payment) | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rule 17f-5 Materials (Digital, CD or Printed) (per Fund/per year for Funds with foreign holdings) | Waived |

---

---

| | |
|:---|:---|
| **4. DDA Charges**<sup>A</sup> |  |
| <u>USD DDA Maintenance Fee</u> (per DDA/per month)<sup>13</sup> | $100 |
| <u>Other DDA Charges and Expenses and DDA Limits</u> | See <u>Appendix 2</u> |

---

 

---

| | |
|:---|:---|
| **5. Feeder Fees** (per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• First Two Feeders (each) | $12000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Additional Feeders (each) | $9600 |

---

---

| | |
|:---|:---|
| **6. Pricing Fees**<sup>14</sup>,<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Pricing</u> (per position/per month) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Municipal, Government, Corporate, Convertible Bonds, Foreign Bonds, CMOs, CDs | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exchange Traded Options, Futures and Private Placements | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Equities, Preferred Stocks | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loans (Thomson Reuters or Markit Loans) | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Fair Valuation/State Street Pricing Service</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funds with 5 or more non-US holdings (per Fund/per year) | $4000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Broker Quotes / Directed Pricing Override (per quote or override) | Waived |

---

---

| | |
|:---|:---|
| **7. Money Market Fund Services Fees** (as applicable)<sup>(Refer to Appendix 3 for Applicable Party)</sup> | See <u>Appendix 3</u> |

---

---

| | |
|:---|:---|
| **8. Other Fund Accounting Charges**<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Class Fund Charge - each additional class (in excess of one) (per year) | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Manager/Sleeves (per sleeve/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Liquid Alternative Funds, as identified by the Funds and State Street from time to time* | $7500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ASC 820 (formerly FAS 157) Reporting (per Fund/per year) | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ASC 815 (formerly FAS 161) Reporting (per Fund/per year) | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• NAV Distributor (per Fund/per year) | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State Street Compliance38 (per Fund/per year) | $800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fund Merger, Consolidation, or other Reorganization (one time charge/per Fund/per event) | $10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Yield Calculations, including SEC Yield (per calculation/per Fund/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Initial | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each additional | Waived |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transmission of Data to Morningstar |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Up to 50 funds (per Fund/per year, plus sleeve fee) | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funds 51-100 (per Fund/per year, plus sleeve fee) | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For each Fund thereafter (per Fund/per year, plus sleeve fee) | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Manager/Sleeves (per sleeve/per year) | N/A |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II.** **Loan Services** 

In consideration for the provision of loan services by State Street pursuant to the Custody Agreement and the discharge of its other obligations thereunder, each Fund shall be obligated to pay State Street the fees and charges set forth in this Section III, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, each Fund shall pay a loan services fee equal to the greater of the Committed Par<sup>15</sup> Fee and the Committed Par Minimum Fee, in each case as specified below.<sup>16</sup>

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| | |
|:---|:---|
| **1. Committed Par Fee** (per Fund/per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Committed Par of Loans<sup>17</sup></u> | <u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0 - $500 Million | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $500 Million - $1 Billion | 2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $1 Billion | 2.0 |
| **Committed Par Minimum Fee** (per Fund/per month) | $3750 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III.** **Fund Administration** 

In consideration for the provision of fund administration services by State Street pursuant to the Sub-Administration Agreement and the discharge of its other obligations thereunder, the Manager shall be obligated to pay State Street the fees and charges set forth in this Section III, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, the Manager shall pay a fund administration fee equal to the greater of the Fund Administration Basis Point Fee and the Fund Administration Minimum Fee, plus any applicable Compliance Monitoring Fee, Fund Reorganization Fees, Other Money Market Fund Services Fees and Other Fund Administration Services Fees, in each case as specified below.<sup>18</sup> The Fund and the Manager agree that, to the extent applicable, a Fund may reimburse the Manager for certain services hereunder as otherwise agreed by the Manager and the Funds. Each Fund is responsible for its own portion of such charges, if any.

 

---

| | |
|:---|:---|
| **1. Fund Administration Basis Point Fee** (Complex Wide/per year)<sup>C</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net Asset Value of Complex Wide Assets</u> | <u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First $10 billion | 0.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Next $10 billion | 0.55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thereafter | 0.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Fee Discount (Complex Wide/per year)</u>** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year 1 Only | $200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year 2 Only | $100000 |
| **2. Fund Administration Minimum Fee** (per Fund/per month)<sup>C</sup> | $4625 |

---

---

| | |
|:---|:---|
| **3. Compliance Monitoring Fee** (per Fund/per year)<sup>D</sup> | $5500 |

---

---

| | |
|:---|:---|
| **4. Fund Reorganization Fee –** Fund Merger, Consolidation, or other Reorganization (one time charge/per Fund/per event)<sup>A</sup> | $10000 |

---

---

| | |
|:---|:---|
| **5. Other Money Market Fund Services Fees** (as applicable)<sup>(Refer to Appendix 3 for Applicable Party)</sup> | See <u>Appendix 3</u> |

---

---

| | |
|:---|:---|
| **6. Other Fund Administration Services Fees** (as applicable)<sup>(Refer to Appendix 4 for Applicable Party)</sup> | See <u>Appendix 4</u> |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.** **Cross Product Service Fees** <sup>A</sup>

In addition to any other fees, charges or expenses that may be payable under this Fee Schedule, each Fund or the Manager shall be obligated to pay State Street the fees and charges set forth in this Section VI, as applicable, based on usage of the listed product or service in connection with the Services.<sup>19</sup>

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;• SWIFT Messages (per message)<sup>20</sup> (Fund) | Waived |
| &nbsp;&nbsp;&nbsp;• CCO Attestation Report (per Semi-Annual Report/per Fund) (Fund) | $125 |
| &nbsp;&nbsp;&nbsp;• SAS99 (audit firm data feeds) (per feed/ per annum) (Fund) | Waived |
| &nbsp;&nbsp;&nbsp;• Document and Data Archiving/Storage (per Fund, per month) (Fund) | Waived |
| &nbsp;&nbsp;&nbsp;• SOC 1 Charges (per Fund, per month)<sup>21</sup> (Fund) | Waived |
| &nbsp;&nbsp;&nbsp;• Dedicated Hardware / Transmission Lines (per Fund/per month)<sup>22</sup> (Fund) | Waived |
| &nbsp;&nbsp;&nbsp;• Data Extracts (Standard) (per extract/per annum)<sup>23</sup> (Fund) | Waived |
| &nbsp;&nbsp;&nbsp;• Data Extracts (Non-standard) (per extract/per annum)<sup>24</sup> (Fund) | Waived |
| &nbsp;&nbsp;&nbsp;• Custom or Manual Reports (per report/per annum)<sup>25</sup> (Fund or Manager as applicable) | Waived |
| &nbsp;&nbsp;&nbsp;• Development of standard or customized programming or transmissions<sup>26</sup> (Fund or Manager, as applicable) | $150 per hour |
| &nbsp;&nbsp;&nbsp;• Maintenance of customized programming or transmissions (per year)<sup>27</sup> (Fund or Manager, as applicable) | $4000 |
| &nbsp;&nbsp;&nbsp;• Vendor oversight and/or due diligence requests (including questionnaires) (per request/ questionnaire /visit) (Fund) | Waived |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V.** **Out of Pocket Expenses** <sup>A</sup>

Out-of-pocket expenses incurred by State Street (and by its subcustodians and depositories) on behalf of each Fund in connection with the performance of the Services will be passed through to the Funds or the Manager each month (as designated below), including, but not limited to, the following expenses. The intent of these designations to the Funds or the Manager is to reflect that certain expenses are associated with custody/fund accounting and certain expenses are associated with fund administration services; as noted, certain expenses may be associated with both custody/fund accounting and fund administration services.

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;• Subcustodian and Depository Out-of-Pocket Expenses<sup>28</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• Miscellaneous expenses incurred in connection with foreign custody (e.g., stamp duties, registration costs, script fees, special transportation costs, etc.) (Fund) |
| &nbsp;&nbsp;&nbsp;• Fair Value Vendor Charges<sup>29</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• Pricing (Non-standard Vendors)<sup>30</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• ADR and GDR charges (Fund) |
| &nbsp;&nbsp;&nbsp;• Stock Exchange Fees (Fund) |
| &nbsp;&nbsp;&nbsp;• DST (agency charges/output fees/underwriting charges) (Fund) |
| &nbsp;&nbsp;&nbsp;• NSCC Settlement Charges (Fund) |
| &nbsp;&nbsp;&nbsp;• Tax Certifications and Form Filing (Fund) |
| &nbsp;&nbsp;&nbsp;• Courier or Overnight Delivery (plus $1 handling fee) (Fund or Manager, as applicable) |
| &nbsp;&nbsp;&nbsp;• Notary and Governmental Charges or Filing Fees (Fund) |
| &nbsp;&nbsp;&nbsp;• Reasonable External Legal Expenses<sup>31</sup> (Fund or Manager, as applicable) |
| &nbsp;&nbsp;&nbsp;• Travel, including transportation, meals and lodging, for Fund Board Meeting attendance and other business related travel at a Fund's request (Fund) |
| &nbsp;&nbsp;&nbsp;• Cost of responding to third party subpoenas and/or regulatory inquires related to the Funds or the Funds' investment adviser(s) or manager(s) (plus a fee of $5,000 per subpoena<sup>32</sup>) (Fund or Manager, as applicable) |

---

Out-of-pocket expenses incurred by State Street (and by its subcustodians and depositories) will be billed to the Funds or the Manager based upon actual usage of a service or an allocated or derived charge for the use of the service for the benefit of the Funds or the Manager, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VI.** **Additional Services** <sup>A</sup>

In the event one or more of the Funds or the Manager request that State Street (i) provide new or additional services not otherwise expressly required by the Agreements, (ii) modify or otherwise change the Services (including, but not limited to, the elements and/or frequency of any task or function performed as part of the Services), (iii) change the means or manner in which the Services are provided, (iv) change the location from or to which the Services are performed or (v) support or handle any non-standard, one-off or special activities, State Street shall be entitled to additional compensation (to be mutually agreed with the Fund(s)) as a condition to its agreement to implement any such request. For avoidance of doubt, the terms of this Section VII apply, without limitation, to material changes in the legal or regulatory requirements applicable to one or more of the Funds or material changes in the legal, tax or regulatory elections or status of one or more of the Funds which result in changes to the service requirements of such Fund(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VII.** **Assumptions** 

The Funds and the Manager acknowledge that the overall fee structure set forth in this Fee Schedule has been agreed by the parties based on information provided by the Funds and the Manager and on the basis of certain mutually agreed assumptions which have been set forth in a separate written Projected Business Profile. In the event that the assumptions set forth in the Projected Business Profile prove to be inaccurate, including, but not limited to, if the gross revenue derived from the overall commercial relationship between State Street and the Funds and the Manger is materially lower than what the Parties agreed would be a reasonable assumption at the time the Agreements were executed, the Parties agree to negotiate an adjustment to such fee structure in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VIII.** **Confidentiality** 

This Fee Schedule constitutes confidential information of the Parties under the terms of the Agreements and shall not be disclosed to any legal or natural person except as expressly permitted thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IX.** **Payment of Fees** 

The service fees, charges and reimbursable expenses payable under this Fee Schedule by the Funds and the Manager will be invoiced to the Funds and the Manager, as applicable, on a monthly basis and shall be due upon receipt. Beginning thirty days from the date of the invoice, State Street will be entitled to charge interest (at the then applicable overdraft interest rate) on any undisputed amounts that remain unpaid.

Unless otherwise expressly stated, yearly fees will be invoiced in twelve monthly installments as part of the standard invoicing process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X.** **Term** 

This Fee Schedule shall become effective as of the Effective Date, shall remain in effect for an initial period of five (5) years, and shall automatically renew for successive one-year periods from year to year thereafter, unless otherwise modified or terminated in accordance with the terms of the Agreements.

<sup>A</sup> Each Fund is responsible for its portion of the charges, as applicable

<sup>B</sup> The Manager is responsible for the charge

<sup>C</sup> The Manager is responsible for the charge and will charge back the following amounts to the applicable Fund:

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| | |
|:---|:---|
| Wash Sales | $3,000 per year per single manager Fund<br> $5,000 per year per multi-manager Fund |
| Qualified Dividend Income | $500 per year, per Fund |

---

<sup>D</sup> The Compliance Monitoring Fee will be charged as follows:

---

| | |
|:---|:---|
| Manager | $4,000 per year, per Fund |
| Applicable Fund | $1,500 per year, per Fund |

---

**<u>APPENDIX 1</u>**<sup>A</sup>

**Foreign Custody and Fund Accounting Fees**

On a monthly basis, each Fund shall pay a Foreign Custody Fee equal to the Foreign Custody and Fund Accounting Asset Charges, plus the Foreign Custody Transaction Charges\*, in each case as specified below.

*\***<u>Note</u>**: Foreign custody transaction charges apply only to Emerging Markets Funds, as identified by the Funds and State Street from time to time.*

**Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges<sup>33</sup>**

**** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Market** | **Foreign Custody and Fund Accounting**<br> **Asset Charge**<br> **(Basis Points)** | **Foreign**<br> **Custody Transaction Charges** | **Market** | **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | **Foreign Custody Transaction Charges** |
| Albania | 50.0 | $150 | Ghana | 35.0 | $100 |
| Argentina | 30.0 | $125 | Greece | 20.0 | $100 |
| Australia | 3.0 | $25 | Hong Kong | 5.0 | $15 |
| Austria | 5.0 | $25 | Hungary | 25.0 | $60 |
| Bahrain | 50.0 | $150 | Iceland | 35.0 | $50 |
| Bangladesh | 45.0 | $125 | India | 15.0 | $35 |
| Belgium | 5.0 | $30 | Indonesia | 8.0 | $30 |
| Bermuda<br>| 15.0<br>| $90<br>| Ireland<br>| 5.0<br>| $40<br>|
| Bolivia | 45.0 | $125 | Luxembourg | 35.0 | $100 |
| Bosnia & Herzegovina | 65.0 | $125 | Israel | 15.0 | $40 |
| Botswana | 35.0 | $100 | Italy | 5.0 | $25 |
| Brazil | 18.0 | $25 | Ivory Coast\* | 75.0 | $150 |
| Bulgaria | 50.0 | $100 | Jamaica | 45.0 | $125 |
| Canada | 2.0 | $20 | Japan-Mizuho | 1.5 | $20 |
| Cayman Island | 30.0 | $75 | Jordan | 45.0 | $125 |
| Cedel\Clearstream | 3.0 | $10 | Kazakhstan | 40.0 | $135 |
| Chile | 30.0 | $125 | Kenya | 35.0 | $100 |
| China | 35.0 | $100 | Kuwait | 30.0 | $150 |
| Colombia | 40.0 | $125 | Latvia | 65.0 | $50 |
| Costa Rica | 40.0 | $80 | Lebanon | 40.0 | $100 |
| Croatia | 50.0 | $100 | Lithuania | 35.0 | $50 |
| Cyprus | 45.0 | $125 | Malawi | 60.0 | $200 |
| Czech Republic | 20.0 | $40 | Malaysia | 8.0 | $30 |
| Denmark | 5.0 | $25 | Malta | 30.0 | $150 |
| Ecuador | 35.0 | $100 | Mauritius | 45.0 | $125 |
| Egypt | 15.0 | $40 | Mexico | 2.5 | $20 |
| Estonia | 50.0 | $50 | Morocco | 25.0 | $100 |
| Euroclear | 3.0 | $5 | Namibia | 45.0 | $125 |
| Finland | 5.0 | $45 | Netherlands | 4.0 | $30 |
| France | 2.0 | $25 | New Zealand | 5.0 | $25 |
| Georgia | 50.0 | $200 | Nigeria | 35.0 | $150 |
| Germany | 2.0 | $25 | Norway | 15.0 | $40 |

---

\* Ivory Coast includes Benin, Burkina Faso, Mali, Niger, Senegal, Guinea-Bissau and Togo.

**<u>APPENDIX 1</u>**<sup>A</sup>

**Foreign Custody and Fund Accounting Fees**

**- Continued -**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Market** | **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | **Foreign**<br> **Custody Transaction Charges** | **Market** | **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | **Foreign Custody Transaction Charges** |
| Oman | 65.0 | $150 | Sri Lanka | 35.0 | $100 |
| Pakistan | 45.0 | $125 | Srpska | 65.0 | $125 |
| Palestine | 50.0 | $150 | Swaziland | 75.0 | $200 |
| Panama | 30.0 | $125 | Sweden | 5.0 | $40 |
| Peru | 45.0 | $125 | Switzerland | 3.0 | $25 |
| Philippines | 8.0 | $40 | Taiwan | 15.0 | $30 |
| Poland | 15.0 | $40 | Tanzania | 35.0 | $150 |
| Portugal | 10.0 | $50 | Thailand | 2.5 | $20 |
| Puerto Rico | 10.0 | $100 | Trinidad & Tobago | 35.0 | $100 |
| Qatar | 50.0 | $75 | Tunisia | 45.0 | $125 |
| Romania | 75.0 | $100 | Turkey | 12.0 | $30 |
| Russia | 50.0 | $300 | Uganda | 50.0 | $110 |
| Saudi Arabia | 40.0 | $125 | Ukraine | 35.0 | $110 |
| Serbia | 45.0 | $150 | United Arab Emirates | 30.0 | $100 |
| Singapore | 5.0 | $20 | United Kingdom | 0.75 | $5 |
| Slovak Republic | 45.0 | $$75 | Uruguay | 45.0 | $125 |
| Slovenia | 75.0 | $100 | Venezuela | 45.0 | $125 |
| South Africa | 2.5 | $10 | Vietnam | 40.0 | $100 |
| South Korea | 10.0 | $25 | Zambia | 35.0 | $100 |
| Spain  | 5.0  | $30  | Zimbabwe  | 35.0  | $100  |

---

APPENDIX 2<sup>A</sup>

**Other DDA Charges and Expenses and DDA Limits**

<u>Interest Rates and Charges</u>

Unless State Street notifies the Funds otherwise, demand deposit accounts established and maintained on behalf of the Funds are non-interest bearing accounts. State Street may elect to pay interest on deposit balances at such times and at such rates as it may specify from time to time. Interest rates, if applicable, will vary by currency and market conditions and State Street may cease paying interest, change interest rates, or apply (and adjust) negative interest rates or equivalent charges or fees on designated currencies, from time to time at its sole discretion. Details on applicable interest rates, equivalent charges or fees are available upon request.

<u>Overdrafts</u>

Except in accordance with the terms of a committed credit facility established with State Street, Funds are not entitled to overdraw their cash deposit accounts. Cash advances or other extensions of credit are made at the discretion of State Street. In the event of an overdraft which exceeds a designated threshold (currently set at $50,000 for USD overdrafts), State Street will impose an interest charge on the amount of the overdraft during the period an account is overdrawn. The interest rates applicable to overdrafts and the applicable overdraft thresholds (if any) are set on a periodic basis by State Street for each currency at its sole discretion, taking into account market conditions and other relevant commercial considerations. Unless otherwise agreed in writing, overdrafts are repayable in full either (i) on demand or (ii) within five business days, whichever is earlier. Interest charges will be accrued on a daily basis and debited from the applicable deposit account monthly. Details on applicable interest rates and overdraft thresholds are available upon request from your client service representative.

<u>Deposit Limits</u>

Subject to applicable law and regulation, State Street may refuse to accept, limit the amount of or return all or a portion of certain types of cash deposits and/or balances, including non-operational deposits.

**<u>APPENDIX 3</u>**

**Money Market Fund Services** 

(as applicable)

---

| | |
|:---|:---|
| **1. Money Market Fund Reporting**<sup>B</sup><br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Monthly Form N-MFP (per Fund/per year) | $11500 |
| **2. Daily And Weekly Liquid Asset Compliance Testing and Daily Website Disclosures** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Taxable Fund (per Fund/per year) | $10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Tax-Free Fund (per Fund/per year) | $8000 |
| **3. Form N-CR** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• File Form N-CR (per Fund/per filing) | $1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Onboarding Fee (per Fund) | $200 |
| **4. Shadow NAV** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Next Day Shadow NAV (by 10 a.m.) (per Fund/per year, plus feeder/class fee) | $15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Same Day Shadow NAV (by 8 p.m.) (per Fund/per year, plus feeder/class fee) | $15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Daily Pricing Vendor Quote (per vendor quote) | Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;• Feeder Fund Shadow NAV (per feeder/per year) | $2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Class Shadow NAV (per class/per year) | $500 |

---

**<u>APPENDIX 4</u>**

**Other Fund Administration Services** 

(as applicable)

---

| | |
|:---|:---|
| **1. State Street ProNavigator<sup>SM</sup>** <sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Prospectus / Summary Prospectus \* | Per Page |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o The first 2,000 pages | $150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o All pages over 2,000 pages | $125 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Statement of Additional Information \* | $75 |
| &nbsp;&nbsp;&nbsp;&nbsp;*\*All Funds that are open-end registered investment companies, as of an agreed upon date each year; costs incurred after the transfer of the files to a Fund's financial printer are the responsibility of the Fund.* | &nbsp;&nbsp;&nbsp;&nbsp;*\*All Funds that are open-end registered investment companies, as of an agreed upon date each year; costs incurred after the transfer of the files to a Fund's financial printer are the responsibility of the Fund.* |
| **2. Financial Statement Composition Services**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Composition only | Per Page |
| &nbsp;&nbsp;&nbsp;&nbsp;*Does not include printing costs, mailing costs or filing fees* | TBD |
| **3. CFTC Compliance Testing and Reporting**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• **Initial Margin and Net Notional Compliance Testing** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Daily (per Fund/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o First 1 – 10 Funds | $11000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Remaining Funds | $6000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Weekly (per Fund/per year) | $5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Monthly (per Fund/per year) | $1500 |
| **4. CPO Annual Exclusion Filing** (Rule 4.5) (per Fund/per year)<sup>B</sup> | $250 |
| **5. Other Special Services** (upon reasonable request)<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• **SEC Filing Services** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Form N-14 Filings (per filing) | TBD |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Form 485(a) Filings |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 1 – 5 Funds (per Fund/per filing) | $5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 6 – 10 Funds (per Fund/per filing) | $3500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 11 or more Funds (per Fund/per filing) | $2500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Exemptive Application Filings (per filing) | $5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• **Special Shareholder Meeting Services** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preparation of Form DEF14 and Meeting Materials | $10,000 to $15,000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• **IRS Form 8937** (per Fund/per form) | $1000 |

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**<u>Explanatory Notes</u>**

------

<sup>1</sup> **Domestic Custody and Fund Accounting Basis Point Fee.** The Domestic Custody and Fund Accounting Basis Point Fee will be calculated by multiplying the net asset value (NAV) of the Funds on the last business day of the month by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30 and then allocating to each Fund its pro rata share based on the Fund's percentage of the Funds' NAV. If a Fund holds foreign assets, the market value of such foreign assets will be subtracted from the NAV of the Fund for purposes of this calculation. The market value of foreign assets used for this calculation will be the amount calculated for purposes of applying the Foreign Custody Asset Charges.

<sup>2</sup> **Transaction Processing Fees**. These are fees charged for processing transactions on behalf of the Funds as a part of the custody services under the Custody Agreement. These Transaction Processing Fees, unless otherwise waived, apply whether a Fund or its third party investment managers entered into such transactions with or through a third party dealer or broker or with or through State Street or one of its affiliates (either acting as a trade counterparty or providing agency execution services). The processing fees are in addition to, and are not to be construed as payments in lieu of, any profit or other compensation (as described in Explanatory Note 6 below) that may be earned by such third party dealer or broker or by State Street or any of its affiliates in connection with such transaction.

<sup>3</sup> **Definition of Transaction for Billing Purposes; Transaction Count Methodology**. Unless otherwise stated in this Fee Schedule, a transaction includes, without limitation, each buy, sell, reset, exchange, pay down, maturity, assignment, roll, call exercise, warrant exercise, rights exercise, convertible security event, amendment, corporate action or similar investment related action or activity which requires processing by State Street. A complete list of transaction types is available from your client service representative

The cancel and rebook of any trade at the instruction of the Fund will be treated as two additional transactions (e.g., in addition to the initial trade order) for billing purposes. With respect to TBAs, the initial trade, the subsequent cancel and each pool allocation will be treated as a separate transaction for billing purposes. The initial trade and subsequent cancel will be billed at the TBA rate and each allocation will be billed at the rate applicable to the relevant transaction/asset type. State Street reserves the right to adjust the definition of a billable transaction and adjust the transaction count methodology as new instruments, transaction types or trading techniques emerge.

<sup>4</sup> **Wire Transfers**. Charges for Wire Transfers apply to all wires sent or received for the account of a Fund, including, but not limited to, wires to or from demand deposit accounts established by State Street to facilitate transfer agency activity of a Fund's third party transfer agent (including Boston Financial Data Services), if applicable.

<sup>5</sup> **Automated Clearing House (ACH) Transfers**. Charges for ACH Transfer charges apply to all such transfers sent or received for the account of a Fund, including, but not limited to, ACH transfers to or from demand deposit accounts established by State Street to facilitate transfer

agency activity of a Fund's third party transfer agent (including Boston Financial Data Services), if applicable.

<sup>6</sup> **Principal and Agency Trading Services**. State Street Global Markets, a separate division of State Street, offers principal or "dealer" trading services as well as agency execution services in a variety of asset classes, including most of those described in this schedule. State Street, acting as principal through its treasury division, also enters into repurchase transactions with custody clients. A Fund or its third party investment managers may select State Street to effect principal or agency transactions. These transactions, however, are conducted under contractual or other arrangements that are distinct from State Street's services and obligations under the Agreements, irrespective of whether trade orders are transmitted through the custody or trustee operations of State Street in accordance with the Agreements. When State Street acts as a counterparty (e.g., foreign exchange, OTC derivatives, repurchase transactions, etc.) to a Fund, such transactions are principal transactions and State Street enters into them as a principal and not in a fiduciary, agency or similar capacity (regardless of any other relationships between State Street and the Funds under the Agreements). In connection with such principal or agency execution services, State Street may earn a profit or otherwise receive compensation from the Funds in a variety of forms, including a commission, subscription or click fee, revenue share, spread, mark-up, mark-down, interest, fee or similar amount.

<sup>7</sup> **Futures**. Each Buy, Short Sell, Buy to Close, Sell to Close, Cancel Buy, Cancel Short Sell, Cancel Buy to Close and Cancel Sell to Close will be treated as a separate transaction for billing purposes.

<sup>8</sup> **Options**. Each Buy, Write, Buy to Close, Sell to Close, Assignment, Exercise, Cancel Buy, Cancel Write, Cancel Buy To Close, Cancel Sell To Close, Cancel Assignment and Cancel Exercise will be treated as a separate transaction for billing purposes.

<sup>9</sup> **OTC Derivatives**. OTC Derivatives include OTC Swaps (Bi-lateral or centrally cleared) and OTC Options. Each trade capture for contract creation, amendment, novation or termination will be treated as a separate transaction for billing purposes.

<sup>10</sup> **Contracts for Differences.** Each buy, sell, reset, close or amendment will be treated as a separate transaction for billing purposes.

<sup>11</sup> **Manual Trade Surcharge**. This surcharge is payable in addition to the listed transaction fees (including, but not limited to, the transaction fees listed in Appendix l) and applies to all transactions for which trade instructions are submitted in a manner that requires manual processing by State Street or otherwise does not facilitate straight-through processing.

<sup>12</sup> **OTC Swap and Option Reconciliations to Counterparty**. Includes reconciliation of position and total market value.

<sup>13</sup> **DDA Maintenance Fee**. The DDA Maintenance Fee will not apply to demand deposit accounts established solely for transfer agency activity whether related to a Fund's third party transfer agent or where State Street is performing the transfer agency services.

<sup>14</sup> **Pricing Fees**. The stated rates are based on use of State Street's standard pricing vendors. The monthly fee will be based on the number of positions held by each Fund at month-end.

<sup>15</sup> **Committed Par**. The term Committed Par means the amount a lender has agreed to lend to a borrower, irrespective of the amount of outstanding loans under a loan commitment at any time.

<sup>16</sup> **Committed Par Fee**. The Committed Par Fee will be calculated by multiplying the sum of the Committed Par of each loan serviced for each Fund at month-end by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30.

<sup>17</sup> **Non-USD Committed Par**. Any Committed Par denominated in a foreign currency (if any) shall be converted to USD for billing purposes using the same currency exchange rates used by the Fund to calculate its NAV.

<sup>18</sup> **Fund Administration Basis Point Fee**. The Fund Administration Basis Point Fee will be calculated by multiplying the average monthly NAV of the Funds by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30, and then allocating to each Fund its pro rata share based on the Fund's percentage of the Funds' NAV. The average monthly NAV of each Fund will be calculated by taking the sum of the Fund's daily NAVs for each day of the calendar month (for each non-business day, the preceding business day's NAV will be used unless the Fund requests use of a different calculation methodology) and dividing that amount by the number of days in the month. State Street reserves the right to bill on the average monthly <u>gross</u> asset value rather than the average monthly NAV of a Fund if the use of leverage (including but not limited to short positions) by the Fund reduces its average monthly NAV and thereby reduces by any material amount the Fund Administration Basis Point Fee that otherwise would be payable in the absence of such leverage.

<sup>19</sup> **Cross Product Service Fees**. The Cross Product Fees and charges do not constitute out-of-pocket or pass-through expenses (i.e., they include a mark-up and/or overhead cost allocation). Changes to the Cross Product Service Fees and additional fees and charges of a similar nature or type may be implemented by State Street upon 90 day's written notice, subject to agreement between State Street and the Funds.

<sup>20</sup> **SWIFT**. Stated fee applies to each outbound SWIFT message generated in relation to a Fund by three State Street systems: Securities Management and Control ("SMAC") messages, Global Securities Management and Control ("GSMAC"), and Multicurrency Horizon ("MCH") messages. SMAC and GSMAC SWIFT messages facilitate particular transactions. MCH SWIFT messages communicate cash statements, holding reports and trade confirmations.

<sup>21</sup> **SOC 1**. Service Organization Controls Report prepared in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization (or any successor, replacement or equivalent report that may be introduced from time to time).

<sup>22</sup> **Dedicated Hardware / Transmission Lines**. Fee applies if the Funds require use of specific technological hardware that is not otherwise part of State Street's standard technology platform or use of a data transmission connection that is solely dedicated to the Funds. The Fee rate will be agreed after an analysis of the Funds' requirements is completed.

<sup>23</sup> **Data Extracts (Standard)**. Stated fee applies to the use of any of the 15 (as of March 25, 2015) CTI MDB Standard Outbound data extracts. For a current listing of CTI MDB Standard Outbound data extracts, please contact your client service representative.

<sup>24</sup> **Data Extracts (Non-standard)**. Stated fee applies to the use of any custom created CTI MDB

Outbound data extracts.

<sup>25</sup> **Custom or Manual Reports (per report)**. Stated fee applies to the one time or recurring creation and distribution of ad-hoc or custom reporting by a State Street employee.

<sup>26</sup> **Customized Programming or Transmissions**. State Street will charge the stated hourly rate for (i) the creation and implementation of Standard or Non Standard Data Extracts as defined above; (ii) for the implementation of dedicated hardware or transmission lines as defined above; and/or (iii) for the implementation any Fund requested customized programming.

<sup>27</sup> **Maintenance of Customized Programming or Transmissions**. Stated fee applies to ongoing maintenance required to (i) support necessary infrastructure, information security protocols or data contained in Standard or Non Standard Data Extracts as defined above; (ii) ongoing support for dedicated hardware or transmission lines; and (iii) ongoing support for any Fund requested customized programming.

<sup>28</sup> **Subcustodian and Depository Out-of-Pocket Expenses**. Subcustodian and Depository Out-of-Pocket Expenses include, without limitation, expenses for account opening, maintenance and administration, courier/delivery, depository charges, funds transfer fees, issuance of nit, late trades, market entrance charges, name change, proxy, registration, rematerialization, remittance, reregistration, stamp duty or tax, stock exchange levies and tax reclaims, among others. A complete list of Subcustodian and Depository Out-of-Pocket Expenses is available from your client service representative.

<sup>29</sup> **Fair Value Vendor Charges**. At the request and direction of the Funds, State Street will source fair value pricing from the Funds' preferred vendor(s). All amounts invoiced to State Street by such vendors with respect to fair value pricing for the Funds will be charged to the Funds as a reimbursable out-of-pocket expense.

<sup>30</sup> **Pricing (Non-standard Vendors)**. At the request and direction of the Funds, State Street will source securities and asset pricing from non-standard vendors. All amounts invoiced to State Street by such vendors with respect to non-standard vendor pricing for the Funds will be charged to the Funds as a reimbursable out-of-pocket expense. A complete listing of standard pricing vendors is available from your client service representative.

<sup>31</sup> **Reasonable External Legal Expenses**. Reasonable external legal expenses incurred by State Street will be charged to the Funds as a reimbursable out-of-pocket expense in circumstances permitted by the Agreements or as otherwise agreed by State Street and the Funds.

<sup>32</sup> **Cost of responding to third party subpoenas and/or regulatory inquires**. The fee of $5,000 is not an out-of-pocket or pass-through expense and is intended to defray internal costs that may be associated with responding to third party subpoenas and/or regulatory inquires. These costs typically include, without limitation, the cost of management and staff time, the use of intemal legal, compliance, risk management, business controls, IT and other resources, and data and document retention, storage and production costs, among others. State Street shall have no obligation to account to the Funds for the type or amount of internal costs actually incurred and such costs may be less than (or exceed) the amount of the fee.

<sup>33</sup> **Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges**. The Foreign Custody and Fund Accounting Asset Charges will be calculated by multiplying the USD market value of the cash, securities and other assets held in custody on behalf of each Fund at month-end by the applicable basis point rate(s) (based on custody location), dividing the result (or the sum of such results) by 360 and multiplying that amount by 30. With respect to assets held outside of the U.S., custody location is determined for billing purposes by reference to the jurisdiction in which State Street, its subcustodian or a Securities System, as the case may be, holds the relevant asset or, if the asset is immobilized or dematerialized and record ownership is maintained only in book-entry form, custody location means the jurisdiction of the Securities System through which State Street maintains the record of the Fund's entitlement to such asset, provided that the custody location for on-book currencies will be the jurisdiction that issues the relevant currency. For purposes of this fee calculation, State Street will utilize the same local currency market values and the same currency exchange rates to convert those values to USD that are used to calculate the NAV of each Fund, provided that the absolute value of any negative cash, security or other asset position will be used. For custody only Funds, State Street will utilize its standard pricing vendors to obtain a market value for each position. If a market value for a position is not available from such vendors, State Street will utilize the same market value for such position that is used by the Fund to calculate its NAV or otherwise value its portfolio, which value will be supplied by the Fund promptly upon request. If following such a request a Fund is unable to provide a market value within five (5) days of month-end, State Street will utilize the market value of the position from the prior month-end and is authorized to continue to use such value until an update is supplied by the Fund or otherwise becomes available from State Street's standard pricing vendors. For illiquid positions, each Fund will be responsible for supplying State Street with a market value as of the date of purchase (or initial custody by State Street) and at least annually thereafter. The Foreign Custody Transaction Charges are fees imposed for processing transactions on behalf of each Fund in the relevant foreign market as part of the custody services. The Manual Trade Surcharge specified in Section I of the Fee Schedule will also be assessed on a foreign custody transaction, as applicable. The Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges applicable with respect to custody services in any country not listed in Appendix 1 above will be negotiated and agreed by State Street and the Funds prior to investment in such country.

**Custody Only.** Reference to "custody only" refers to any custody relationship with a Fund where State Street does not also provide fund accounting or portfolio accounting services to such Fund.

## Ex-99.(H)(2)(D)

**Exhibit 99.(h)(2)(D)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**THIRD AMENDMENT**

**TO**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Third Amendment to the Sub-Administrative Services Fee Agreement is made as of March 26, 2019 (the "Amendment") by and between the American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, the American Beacon Institutional Funds Trust, a Delaware statutory trust, the American Beacon Sound Point Enhanced Income Fund and the American Beacon Apollo Total Return Fund, each a Delaware statutory trust, (collectively, the "Trusts"), and American Beacon Advisors, Inc., a Delaware corporation (the "Manager"). Capitalized terms used in this Amendment without definition shall have the respective meanings ascribed to such terms in the Agreement (as defined below).

WHEREAS, the Manager and the Trusts entered into a Sub-Administrative Services Fee Agreement effective as of April 30, 2017 (the "Agreement");

WHEREAS, the parties wish to amend the Agreement as set forth below:

Manager and the Trusts wish to add the American Beacon AHL TargetRisk, American Beacon Continuous Capital Emerging Markets, and American Beacon Tocqueville International Value Funds, and to remove the American Beacon Flexible Bond, American Beacon Grosvenor Long/Short, and American Beacon Numeric Integrated Alpha Funds as parties to the Agreement and update Schedules A and B to the Agreement as set forth below;

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Agreement, pursuant to the terms thereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Agreement and its Schedule A and Schedule B are amended to reflect the addition of the following Funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. American Beacon AHL TargetRisk Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. American Beacon Continuous Capital Emerging Markets Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. American Beacon Tocqueville International Value Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Agreement and its Schedule A and Schedule B are amended to reflect the removal of the following Funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. American Beacon Flexible Bond Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. American Beacon Grosvenor Long/Short Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. American Beacon Numeric Integrated Alpha
Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Schedule A and Schedule B are hereby deleted in their entirety and replaced with the updated Schedule
A and Schedule B attached.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Except as specifically amended hereby, all other terms and conditions of the Agreement shall remain in
full force and effect. This Amendment is incorporated in its entirety into the Agreement, and this Amendment and said Agreement shall
be read and interpreted together as the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective seals to be hereunto affixed, as of the day and year first above written.

AMERICAN BEACON FUNDS

AMERICAN BEACON SELECT FUNDS

AMERICAN BEACON INSTITUTIONAL FUNDS TRUST

AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND

AMERICAN BEACON APOLLO TOTAL RETURN FUND

---

| | |
|:---|:---|
| By: | /s/ Gene L. Needles, Jr. |
|  | Gene L. Needles, Jr. |
|  | President |

---

AMERICAN BEACON ADVISORS, INC.

---

| | |
|:---|:---|
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President and Chief Operating Officer |

---

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE A**

**American Beacon Funds**

American Beacon AHL Managed Futures Strategy Fund

American Beacon AHL Target Risk Fund

American Beacon Acadian Emerging Markets Managed Volatility Fund

American Beacon Alpha Quant Core Fund

American Beacon Alpha Quant Dividend Fund

American Beacon Alpha Quant Quality Fund

American Beacon Alpha Quant Value Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Growth II Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Continuous Capital Emerging Markets Fund

American Beacon Crescent Short Duration High Income Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon GLG Total Return Fund

American Beacon Frontier Markets Income Fund

American Beacon International Equity Fund

American Beacon Ionic Strategy Arbitrage Fund

American Beacon Large Cap Value Fund

American Beacon Mid-Cap Value Fund

American Beacon SGA Global Growth Fund

American Beacon Shapiro Equity Opportunities Fund

American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon Sound Point Floating Rate Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon Tocqueville International Value Fund

American Beacon TwentyFour Strategic Income Fund

American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUND**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

American Beacon Sound Point Enhanced Income Fund

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

American Beacon Apollo Total Return Fund

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE B**

**COMBINED FEE SCHEDULE**

**American Beacon Funds ("AB Funds")**

**American Beacon Select Funds ("AB Select Funds")**

**American Beacon Institutional Funds Trust ("AB Institutional Funds")**

**American Beacon Sound Point Enhanced Income Fund ("Sound Point Fund")**

**American Beacon Apollo Total Return Fund ("Apollo")**

**(each a "Fund" and collectively, the "Funds")**

**American Beacon Advisors, Inc. (the "Manager")**

**Amended and Restated Confidential Fee Schedule**

**Dated May 8, 2018**

**CUSTODY, FUND ACCOUNTING, AND FUND ADMINISTRATION Services**

This Amended and Restated Confidential Fee Schedule amends and restates the fee schedule entered into by the parties hereto dated May 8, 2018. This Amended and Restated Fee Schedule is effective as of April 30, 2017, except as otherwise noted herein (the "**Effective Date**"), and except that it is effective with respect to the Sound Point Fund as of May 8, 2018 and the Apollo Fund as of August 26, 2018.

Reference is hereby made to (a) the Custodian Agreement dated as of December 1, 1997 by and between State Street Bank and Trust Company ("**State Street**") and AB Funds (the "**AB Funds Custody Agreement**"); (b) the Custodian Agreement dated as of December 31, 1999 by and between State Street and AB Select Funds (the "**AB Select Funds Custody Agreement**"), (c) the Custodian Agreement dated as of March 24, 2017 by and between State Street and the AB Institutional Funds (the "**AB Institutional Funds Custody Agreement**"), (d) the Custodian Agreement dated as of May 8, 2018 by and between State Street and the Funds specified therein, (the "**AB Master Custody Agreement**," and collectively, the "**Custody Agreements**"), and (e) the Sub-Administration Agreement dated as of September 6, 2017 by and between State Street and the Manager (the "**Sub-Administration Agreement**", and collectively with the Custody Agreements, the "**Agreements**," as the same may be amended, supplemented, restated or otherwise modified from time to time). The parties have entered into this fee schedule ("**Fee Schedule**") effective as of the Effective Date, in order to memorialize their agreement on the compensation to be paid by the Funds and the Manager to State Street for the performance of the services specified in the Agreements (the "**Services**"). This Fee Schedule shall be subject to the terms and conditions of the Agreements as if it were a part thereof. Unless otherwise agreed by the parties, this Fee Schedule shall apply to the provision of the Services to each Fund which is a party or is otherwise subject to the Agreements from time to time. In the event of any conflict between the terms of an Agreement and the terms of this Fee Schedule relating to fees, charges, expenses or other financial terms, the terms of this Fee Schedule shall control. Unless otherwise defined, capitalized terms used herein shall have the meaning given to them in the relevant Agreement, as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** Custody and Fund Accounting

In consideration for the provision of custody and fund accounting services by State Street pursuant to the Custody Agreement and the discharge of its other obligations thereunder, each Fund shall be obligated to pay State Street the fees and charges set forth in this Section I, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, each Fund shall pay a domestic custody and fund accounting fee equal to the Domestic Custody and Fund Accounting Basis Point Fee, plus the applicable Foreign Custody Fee, Transaction Processing and Activity Based Fees and DDA Charges, plus the applicable Feeder Fees, Pricing Fees, Money Market Fund Services Fees and Other Fund Accounting Charges, in each case as specified below.<sup>1</sup>

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**1.** | **Domestic Custody and Fund Accounting Basis Point Fee** (Complex Wide/per year)<sup>A</sup> |  |
|  | <u>Net Asset Value of Complex Wide Assets</u> | &nbsp;&nbsp;<u>Annual Basis Point Rate</u> |
|  | $0 - $17 Billion | &nbsp;&nbsp;1.00 |
|  | $17- $40 Billion | &nbsp;&nbsp;0.75 |
|  | Over $40 Billion | &nbsp;&nbsp;0.50 |
| &nbsp;&nbsp;**2.** | **Foreign Custody and Fund Accounting Fee** (per Fund/per month and per transaction)<sup>A</sup> | &nbsp;&nbsp;See <u>Appendix 1</u> |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**3.** | **Transaction Processing and Activity Based Fees**<sup>2 A</sup> |  |
|  | <u>Domestic Transaction Processing Fees</u><sup>3</sup> (per transaction) |  |
|  | • State Street Repurchase Agreements (Repo) | &nbsp;&nbsp;Waived |
|  | • Fund of Fund Trades | &nbsp;&nbsp;Waived |
|  | • DTC or Fed Book Entry – Automated/Electronic Trade Instruction | &nbsp;&nbsp;Waived |
|  | • Mortgage Backed Securities Principal and Income Paydowns | &nbsp;&nbsp;Waived |
|  | • Physical Settlement Processing | &nbsp;&nbsp;Waived |
|  | • Collateral/Memo Pledging (Fed Book Entry & DTC) | &nbsp;&nbsp;Waived |
|  | • Wire Transfers (Fed Wires & Interbank Transfers)<sup>4</sup> | &nbsp;&nbsp;Waived |
|  | • Automated Clearing House (ACH) Transfers<sup>5</sup> | &nbsp;&nbsp;Waived |
|  | • Processing of Third Party Foreign Exchange - Automated/Electronic Trade Instruction | &nbsp;&nbsp;$25.00 |
|  | • Processing of Third Party Foreign Exchange - Manual Trade Instruction (Fax, etc.) | &nbsp;&nbsp;$25.00 |
|  | • Processing of Foreign Exchange executed through State Street Global Markets<sup>6</sup> | &nbsp;&nbsp; No Charge –<br> See Explanatory Note 6 |
|  | • Listed Futures<sup>7</sup> |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Managed Futures Funds, as identified by the Funds and State Street from time to time : effective April 1, 2018* | &nbsp;&nbsp;$5 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | &nbsp;&nbsp;Waived |
|  | • Listed Options<sup>8</sup> | &nbsp;&nbsp;Waived |
|  | • OTC Derivatives<sup>9</sup> | &nbsp;&nbsp;$25.00 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Contracts for Differences<sup>10</sup> o *This fee is applicable with respect to American Beacon Numeric Integrated Alpha Fund (DVK6) effective November 1, 2016 and for all other Funds is applicable as of the effective date.*  | &nbsp;&nbsp;$3.75 |
|  | • TBAs | &nbsp;&nbsp;Waived |
|  | • All Other Trades | &nbsp;&nbsp;Waived |
|  | <u>Manual Trade Surcharge</u> (per transaction)<sup>11</sup> | &nbsp;&nbsp;Waived |
|  | <u>Other Custody Fees</u> |  |
|  | • OTC Swap and Option Reconciliations to Counterparty (monthly/per position)<sup>12</sup> | &nbsp;&nbsp;$45 |
|  | • Checks (per check, per issuance/certification/stop payment) | &nbsp;&nbsp;Waived |
|  | • Rule 17f-5 Materials (Digital, CD or Printed) (per Fund/per year for Funds with foreign holdings) | &nbsp;&nbsp;Waived |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**4.** | **DDA Charges**<sup>A</sup> |  |
|  | <u>USD DDA Maintenance Fee</u> (per DDA/per month)<sup>13</sup> | &nbsp;&nbsp;$100 |
|  | <u>Other DDA Charges and Expenses and DDA Limits</u> | &nbsp;&nbsp;See <u>Appendix 2</u> |

---

 

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**5.** | **Feeder Fees** (per year)<sup>A</sup> |  |
|  | • First Two Feeders (each) | $12000 |
|  | • Additional Feeders (each) | $9600 |

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---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**6.** | **Pricing Fees**<sup>14</sup>,<sup>A</sup> |  |
|  | <u>Pricing</u> (per position/per month) |  |
|  | • Municipal, Government, Corporate, Convertible Bonds, Foreign Bonds, CMOs, CDs | Waived |
|  | • Exchange Traded Options, Futures and Private Placements | Waived |
|  | • Equities, Preferred Stocks | Waived |
|  | • Loans (Thomson Reuters or Markit Loans) | Waived |
|  | • Other | Waived |
|  | <u>Fair Valuation/State Street Pricing Service</u> |  |
|  | • Funds with 5 or more non-US holdings (per Fund/per year) | $4000 |
|  | • Broker Quotes / Directed Pricing Override (per quote or override) | Waived |

---

**7.** **Money Market Fund Services Fees** (as applicable)<sup>(Refer to Appendix 3 for Applicable Party)</sup> See <u>Appendix 3</u> 

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**8.** | **Other Fund Accounting Charges**<sup>A</sup> |  |
|  | • Multi-Class Fund Charge - each additional class (in excess of one) (per year) | Waived |
|  | • Multi-Manager/Sleeves (per sleeve/per year) |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Liquid Alternative Funds, as identified by the Funds and State Street from time to time* | $7500 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | Waived |
|  | • ASC 820 (formerly FAS 157) Reporting (per Fund/per year) | Waived |
|  | • ASC 815 (formerly FAS 161) Reporting (per Fund/per year) | Waived |
|  | • NAV Distributor (per Fund/per year) | Waived |
|  | • State Street Compliance38 (per Fund/per year) | $800 |
|  | • Fund Merger, Consolidation, or other Reorganization (one time charge/per Fund/per event) | $10000 |
|  | • Yield Calculations, including SEC Yield (per calculation/per Fund/per year) |  |
|  | • Initial | Waived |
|  | • Each additional | Waived |
|  | • Transmission of Data to Morningstar |  |
|  | • Up to 50 funds (per Fund/per year, plus sleeve fee) | N/A |
|  | • Funds 51-100 (per Fund/per year, plus sleeve fee) | N/A |
|  | • For each Fund thereafter (per Fund/per year, plus sleeve fee) | N/A |
|  | • Multi-Manager/Sleeves (per sleeve/per year) | N/A |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II.** **Loan Services** 

In consideration for the provision of loan services by State Street pursuant to the Custody Agreement and the discharge of its other obligations thereunder, each Fund shall be obligated to pay State Street the fees and charges set forth in this Section III, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, each Fund shall pay a loan services fee equal to the greater of the Committed Par<sup>15</sup> Fee and the Committed Par Minimum Fee, in each case as specified below.<sup>16</sup>

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**1.** | **Committed Par Fee** (per Fund/per year)<sup>A</sup> |  |
|  | <u>Committed Par of Loans</u><sup>17</sup> | <u>Annual Basis Point Rate</u> |
|  | $0 - $500 Million | 3.0 |
|  | Over $500 Million - $1 Billion | 2.5 |
|  | Over $1 Billion | 2.0 |
|  | **Committed Par Minimum Fee** (per Fund/per month) | $3750 |

---

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III.** **Fund Administration** 

In consideration for the provision of fund administration services by State Street pursuant to the Sub-Administration Agreement and the discharge of its other obligations thereunder, the Manager shall be obligated to pay State Street the fees and charges set forth in this Section III, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, the Manager shall pay a fund administration fee equal to the greater of the Fund Administration Basis Point Fee and the Fund Administration Minimum Fee, plus any applicable Compliance Monitoring Fee, Fund Reorganization Fees, Other Money Market Fund Services Fees and Other Fund Administration Services Fees, in each case as specified below.<sup>18</sup> The Fund and the Manager agree that, to the extent applicable, a Fund may reimburse the Manager for certain services hereunder as otherwise agreed by the Manager and the Funds. Each Fund is responsible for its own portion of such charges, if any.

 

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**1.** | **Fund Administration Basis Point Fee** (Complex Wide/per year)<sup>C</sup> |  |
|  | <u>Net Asset Value of Complex Wide Assets</u> | <u>Annual Basis Point Rate</u> |
|  | First $10 billion | 0.65 |
|  | Next $10 billion | 0.55 |
|  | Thereafter | 0.40 |
|  | **<u>Fee Discount (Complex Wide/per year)</u>** |  |
|  | Year 1 Only | $200000 |
|  | Year 2 Only | $100000 |
| &nbsp;&nbsp;**2.** | **Fund Administration Minimum Fee** (per Fund/per month)<sup>C</sup> | $4625 |

---

**3.** **Compliance Monitoring Fee** (per Fund/per year)<sup>D</sup> $5,500

**4.** **Fund Reorganization Fee –** Fund Merger, Consolidation, or other Reorganization (one time charge/per Fund/per event)<sup>A</sup> $10,000

**5.** **Other Money Market Fund Services Fees** (as applicable)<sup>(Refer to Appendix 3 for Applicable Party)</sup> See <u>Appendix 3</u> 

**6.** **Other Fund Administration Services Fees** (as applicable)<sup>(Refer to Appendix 4 for Applicable Party)</sup> See <u>Appendix 4</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.** **Cross Product Service Fees** <sup>A</sup>

In addition to any other fees, charges or expenses that may be payable under this Fee Schedule, each Fund or the Manager shall be obligated to pay State Street the fees and charges set forth in this Section IV, as applicable, based on usage of the listed product or service in connection with the Services.<sup>19</sup>

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;• SWIFT Messages (per message)<sup>20</sup>(Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• CCO Attestation Report (per Semi-Annual Report/per Fund) (Fund) | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;&nbsp;• SAS99 (audit firm data feeds) (per feed/ per annum) (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Document and Data Archiving/Storage (per Fund, per month) (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• SOC 1 Charges (per Fund, per month)<sup>21</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Dedicated Hardware / Transmission Lines (per Fund/per month)<sup>22</sup> (Fund) | &nbsp;&nbsp; Waived |
| &nbsp;&nbsp;&nbsp;• Data Extracts (Standard) (per extract/per annum)<sup>23</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Data Extracts (Non-standard) (per extract/per annum)<sup>24</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Custom or Manual Reports (per report/per annum)<sup>25</sup> (Fund or Manager as applicable) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Development of standard or customized programming or transmissions<sup>26</sup> (Fund or Manager, as applicable) | &nbsp;&nbsp;$150 per hour |
| &nbsp;&nbsp;&nbsp;• Maintenance of customized programming or transmissions (per year)<sup>27</sup> (Fund or Manager, as applicable) | &nbsp;&nbsp;$4000 |
| &nbsp;&nbsp;&nbsp;• Vendor oversight and/or due diligence requests (including questionnaires) (per request/ questionnaire /visit) (Fund) | &nbsp;&nbsp;Waived |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V.** **Out of Pocket Expenses** <sup>A</sup>

Out-of-pocket expenses incurred by State Street (and by its subcustodians and depositories) on behalf of each Fund in connection with the performance of the Services will be passed through to the Funds or the Manager each month (as designated below), including, but not limited to, the following expenses. The intent of these designations to the Funds or the Manager is to reflect that certain expenses are associated with custody/fund accounting and certain expenses are associated with fund administration services; as noted, certain expenses may be associated with both custody/fund accounting and fund administration services.

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;• Subcustodian and Depository Out-of-Pocket Expenses<sup>28</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• Miscellaneous expenses incurred in connection with foreign custody (e.g., stamp duties, registration costs, script fees, special transportation costs, etc.) (Fund) |
| &nbsp;&nbsp;&nbsp;• Fair Value Vendor Charges<sup>29</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• Pricing (Non-standard Vendors)<sup>30</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• ADR and GDR charges (Fund) |
| &nbsp;&nbsp;&nbsp;• Stock Exchange Fees (Fund) |
| &nbsp;&nbsp;&nbsp;• DST (agency charges/output fees/underwriting charges) (Fund) |
| &nbsp;&nbsp;&nbsp;• NSCC Settlement Charges (Fund) |
| &nbsp;&nbsp;&nbsp;• Tax Certifications and Form Filing (Fund) |
| &nbsp;&nbsp;&nbsp;• Courier or Overnight Delivery (plus $1 handling fee) (Fund or Manager, as applicable) |
| &nbsp;&nbsp;&nbsp;• Notary and Governmental Charges or Filing Fees (Fund) |
| &nbsp;&nbsp;&nbsp;• Reasonable External Legal Expenses<sup>31</sup> (Fund or Manager, as applicable) |
| &nbsp;&nbsp;&nbsp;• Travel, including transportation, meals and lodging, for Fund Board Meeting attendance and other business related travel at a Fund's request (Fund) |
| &nbsp;&nbsp;&nbsp;• Cost of responding to third party subpoenas and/or regulatory inquires related to the Funds or the Funds' investment adviser(s) or manager(s) (plus a fee of $5,000 per subpoena<sup>32</sup>) (Fund or Manager, as applicable) |

---

Out-of-pocket expenses incurred by State Street (and by its subcustodians and depositories) will be billed to the Funds or the Manager based upon actual usage of a service or an allocated or derived charge for the use of the service for the benefit of the Funds or the Manager, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VI.** **Additional Services** <sup>A</sup>

In the event one or more of the Funds or the Manager request that State Street (i) provide new or additional services not otherwise expressly required by the Agreements, (ii) modify or otherwise change the Services (including, but not limited to, the elements and/or frequency of any task or function performed as part of the Services), (iii) change the means or manner in which the Services are provided, (iv) change the location from or to which the Services are performed or (v) support or handle any non-standard, one-off or special activities, State Street shall be entitled to additional compensation (to be mutually agreed with the Fund(s)) as a condition to its agreement to implement any such request. For avoidance of doubt, the terms of this Section VII apply, without limitation, to material changes in the legal or regulatory requirements applicable to one or more of the Funds or material changes in the legal, tax or regulatory elections or status of one or more of the Funds which result in changes to the service requirements of such Fund(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VII.** **Assumptions** 

The Funds and the Manager acknowledge that the overall fee structure set forth in this Fee Schedule has been agreed by the parties based on information provided by the Funds and the Manager and on the basis of certain mutually agreed assumptions which have been set forth in a separate written Projected Business Profile. In the event that the assumptions set forth in the Projected Business Profile prove to be inaccurate, including, but not limited to, if the gross revenue derived from the overall commercial relationship between State Street and the Funds and the Manger is materially lower than what the Parties agreed would be a reasonable assumption at the time the Agreements were executed, the Parties agree to negotiate an adjustment to such fee structure in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VIII.** **Confidentiality** 

This Fee Schedule constitutes confidential information of the Parties under the terms of the Agreements and shall not be disclosed to any legal or natural person except as expressly permitted thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IX.** **Payment of Fees** 

The service fees, charges and reimbursable expenses payable under this Fee Schedule by the Funds and the Manager will be invoiced to the Funds and the Manager, as applicable, on a monthly basis and shall be due upon receipt. Beginning thirty days from the date of the invoice, State Street will be entitled to charge interest (at the then applicable overdraft interest rate) on any undisputed amounts that remain unpaid.

Unless otherwise expressly stated, yearly fees will be invoiced in twelve monthly installments as part of the standard invoicing process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X.** **Term** 

This Fee Schedule shall become effective as of the Effective Date, shall remain in effect for an initial period of five (5) years, and shall automatically renew for successive one-year periods from year to year thereafter, unless otherwise modified or terminated in accordance with the terms of the Agreements.

<sup>A</sup> Each Fund is responsible for its portion of the charges, as applicable

<sup>B</sup> The Manager is responsible for the charge

<sup>C</sup> The Manager is responsible for the charge and will charge back the following amounts to the applicable Fund:

---

| | |
|:---|:---|
| Wash Sales | $3,000 per year per single manager Fund |
|  | $5,000 per year per multi-manager Fund |
| Qualified Dividend Income | $500 per year, per Fund |

---

<sup>D</sup> The Compliance Monitoring Fee will be charged as follows:

---

| | |
|:---|:---|
| Manager | $4,000 per year, per Fund |
| Applicable Fund | $1,500 per year, per Fund |

---

**<u>APPENDIX 1</u>**<sup>A</sup>

**Foreign Custody and Fund Accounting Fees**

On a monthly basis, each Fund shall pay a Foreign Custody Fee equal to the Foreign Custody and Fund Accounting Asset Charges, plus the Foreign Custody Transaction Charges\*, in each case as specified below.

*\***<u>Note</u>**: Foreign custody transaction charges apply only to Emerging Markets Funds, as identified by the Funds and State Street from time to time.*

**Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges**<sup>33</sup>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Market** | &nbsp;&nbsp; **Foreign Custody and Fund Accounting**<br> **Asset Charge**<br> **(Basis Points)** | &nbsp;&nbsp; **Foreign**<br> **Custody Transaction Charges** | &nbsp;&nbsp;**Market** | &nbsp;&nbsp; **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | &nbsp;&nbsp;**Foreign Custody Transaction Charges** |
| &nbsp;&nbsp;Albania | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;Ghana | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Argentina | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Greece | &nbsp;&nbsp;20.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Australia | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Hong Kong | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$15 |
| &nbsp;&nbsp;Austria | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Hungary | &nbsp;&nbsp;25.0 | &nbsp;&nbsp;$60 |
| &nbsp;&nbsp;Bahrain | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;Iceland | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$50 |
| &nbsp;&nbsp;Bangladesh | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;India | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$35 |
| &nbsp;&nbsp;Belgium | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$30 | &nbsp;&nbsp;Indonesia | &nbsp;&nbsp;8.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp; Bermuda<br> Bolivia | &nbsp;&nbsp; 15.0<br> 45.0 | &nbsp;&nbsp; $90<br> $125 | &nbsp;&nbsp; Ireland<br> Luxembourg | &nbsp;&nbsp; 5.0<br> 35.0 | &nbsp;&nbsp; $40<br> $100 |
| &nbsp;&nbsp;Bosnia & Herzegovina | &nbsp;&nbsp;65.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Israel | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$40 |
| &nbsp;&nbsp;Botswana | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Italy | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$25 |
| &nbsp;&nbsp;Brazil | &nbsp;&nbsp;18.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Ivory Coast\* | &nbsp;&nbsp;75.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Bulgaria | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Jamaica | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Canada | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;$20 | &nbsp;&nbsp;Japan-Mizuho | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;$20 |
| &nbsp;&nbsp;Cayman Island | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$75 | &nbsp;&nbsp;Jordan | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Cedel\Clearstream | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;$10 | &nbsp;&nbsp;Kazakhstan | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$135 |
| &nbsp;&nbsp;Chile | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Kenya | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;China | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Kuwait | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Colombia | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Latvia | &nbsp;&nbsp;65.0 | &nbsp;&nbsp;$50 |
| &nbsp;&nbsp;Costa Rica | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$80 | &nbsp;&nbsp;Lebanon | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Croatia | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Lithuania | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$50 |
| &nbsp;&nbsp;Cyprus | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Malawi | &nbsp;&nbsp;60.0 | &nbsp;&nbsp;$200 |
| &nbsp;&nbsp;Czech Republic | &nbsp;&nbsp;20.0 | &nbsp;&nbsp;$40 | &nbsp;&nbsp;Malaysia | &nbsp;&nbsp;8.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp;Denmark | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Malta | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Ecuador | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Mauritius | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Egypt | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$40 | &nbsp;&nbsp;Mexico | &nbsp;&nbsp;2.5 | &nbsp;&nbsp;$20 |
| &nbsp;&nbsp;Estonia | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$50 | &nbsp;&nbsp;Morocco | &nbsp;&nbsp;25.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Euroclear | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;$5 | &nbsp;&nbsp;Namibia | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Finland | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$45 | &nbsp;&nbsp;Netherlands | &nbsp;&nbsp;4.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp;France | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;New Zealand | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$25 |
| &nbsp;&nbsp;Georgia | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$200 | &nbsp;&nbsp;Nigeria | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Germany | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Norway | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$40 |

---

\* Ivory Coast includes Benin, Burkina Faso, Mali, Niger, Senegal, Guinea-Bissau and Togo.

**<u>APPENDIX 1</u>**<sup>A</sup>

**Foreign Custody and Fund Accounting Fees**

**- Continued -**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Market** | &nbsp;&nbsp; **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | &nbsp;&nbsp; **Foreign**<br> **Custody Transaction Charges** | &nbsp;&nbsp;**Market** | &nbsp;&nbsp; **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | &nbsp;&nbsp;**Foreign Custody Transaction Charges** |
| &nbsp;&nbsp;Oman | &nbsp;&nbsp;65.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;Sri Lanka | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Pakistan | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Srpska | &nbsp;&nbsp;65.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Palestine | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;Swaziland | &nbsp;&nbsp;75.0 | &nbsp;&nbsp;$200 |
| &nbsp;&nbsp;Panama | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Sweden | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$40 |
| &nbsp;&nbsp;Peru | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Switzerland | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;$25 |
| &nbsp;&nbsp;Philippines | &nbsp;&nbsp;8.0 | &nbsp;&nbsp;$40 | &nbsp;&nbsp;Taiwan | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp;Poland | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$40 | &nbsp;&nbsp;Tanzania | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Portugal | &nbsp;&nbsp;10.0 | &nbsp;&nbsp;$50 | &nbsp;&nbsp;Thailand | &nbsp;&nbsp;2.5 | &nbsp;&nbsp;$20 |
| &nbsp;&nbsp;Puerto Rico | &nbsp;&nbsp;10.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Trinidad & Tobago | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Qatar | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$75 | &nbsp;&nbsp;Tunisia | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Romania | &nbsp;&nbsp;75.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Turkey | &nbsp;&nbsp;12.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp;Russia | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$300 | &nbsp;&nbsp;Uganda | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$110 |
| &nbsp;&nbsp;Saudi Arabia | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Ukraine | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$110 |
| &nbsp;&nbsp;Serbia | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;United Arab Emirates | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Singapore | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$20 | &nbsp;&nbsp;United Kingdom | &nbsp;&nbsp;0.75 | &nbsp;&nbsp;$5 |
| &nbsp;&nbsp;Slovak Republic | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$$75 | &nbsp;&nbsp;Uruguay | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Slovenia | &nbsp;&nbsp;75.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Venezuela | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;South Africa | &nbsp;&nbsp;2.5 | &nbsp;&nbsp;$10 | &nbsp;&nbsp;Vietnam | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;South Korea | &nbsp;&nbsp;10.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Zambia | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp; Spain<br>| &nbsp;&nbsp; 5.0<br>| &nbsp;&nbsp; $30<br>| &nbsp;&nbsp; Zimbabwe<br>| &nbsp;&nbsp; 35.0<br>| &nbsp;&nbsp; $100<br>|

---

**<u>APPENDIX 2</u>**<sup>A</sup>

**Other DDA Charges and Expenses and DDA Limits**

<u>Interest Rates and Charges</u>

Unless State Street notifies the Funds otherwise, demand deposit accounts established and maintained on behalf of the Funds are non-interest bearing accounts. State Street may elect to pay interest on deposit balances at such times and at such rates as it may specify from time to time. Interest rates, if applicable, will vary by currency and market conditions and State Street may cease paying interest, change interest rates, or apply (and adjust) negative interest rates or equivalent charges or fees on designated currencies, from time to time at its sole discretion.

Details on applicable interest rates, equivalent charges or fees are available upon request.

<u>Overdrafts</u>

Except in accordance with the terms of a committed credit facility established with State Street, Funds are not entitled to overdraw their cash deposit accounts. Cash advances or other extensions of credit are made at the discretion of State Street. In the event of an overdraft which exceeds a designated threshold (currently set at $50,000 for USD overdrafts), State Street will impose an interest charge on the amount of the overdraft during the period an account is overdrawn. The interest rates applicable to overdrafts and the applicable overdraft thresholds (if any) are set on a periodic basis by State Street for each currency at its sole discretion, taking into account market conditions and other relevant commercial considerations. Unless otherwise agreed in writing, overdrafts are repayable in full either (i) on demand or (ii) within five business days, whichever is earlier. Interest charges will be accrued on a daily basis and debited from the applicable deposit account monthly. Details on applicable interest rates and overdraft thresholds are available upon request from your client service representative.

<u>Deposit Limits</u>

Subject to applicable law and regulation, State Street may refuse to accept, limit the amount of or return all or a portion of certain types of cash deposits and/or balances, including non-operational deposits.

**<u>APPENDIX 3</u>**

**Money Market Fund Services**

(as applicable)

---

| | |
|:---|:---|
| **1. Money Market Fund Reporting**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Monthly Form N-MFP (per Fund/per year) | &nbsp;&nbsp;$11500 |
| **2. Daily And Weekly Liquid Asset Compliance Testing and Daily Website Disclosures** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Taxable Fund (per Fund/per year) | &nbsp;&nbsp;$10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Tax-Free Fund (per Fund/per year) | &nbsp;&nbsp;$8000 |
| **3. Form N-CR** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• File Form N-CR (per Fund/per filing) | &nbsp;&nbsp;$1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Onboarding Fee (per Fund) | &nbsp;&nbsp;$200 |
| **4. Shadow NAV** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Next Day Shadow NAV (by 10 a.m.) (per Fund/per year, plus feeder/class fee) | &nbsp;&nbsp;$15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Same Day Shadow NAV (by 8 p.m.) (per Fund/per year, plus feeder/class fee) | &nbsp;&nbsp; $15000<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;• Daily Pricing Vendor Quote (per vendor quote) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;• Feeder Fund Shadow NAV (per feeder/per year) | &nbsp;&nbsp;$2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Class Shadow NAV (per class/per year) | &nbsp;&nbsp;$500 |

---

**<u>APPENDIX 4</u>**

**Other Fund Administration Services**

(as applicable)

---

| | |
|:---|:---|
| **1. State Street ProNavigator<sup>SM</sup>** <sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Prospectus / Summary Prospectus \* | &nbsp;&nbsp;Per Page |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o The first 2,000 pages | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o All pages over 2,000 pages | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Statement of Additional Information \* | &nbsp;&nbsp;$75 |
| &nbsp;&nbsp;&nbsp;&nbsp;*\*All Funds that are open-end registered investment companies, as of an agreed upon date each year; costs incurred after the transfer of the files to a Fund's financial printer are the responsibility of the Fund.* | &nbsp;&nbsp;&nbsp;&nbsp;*\*All Funds that are open-end registered investment companies, as of an agreed upon date each year; costs incurred after the transfer of the files to a Fund's financial printer are the responsibility of the Fund.* |
| **2. Financial Statement Composition Services**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Composition only | &nbsp;&nbsp;Per Page |
| &nbsp;&nbsp;&nbsp;&nbsp;*Does not include printing costs, mailing costs or filing fees* | &nbsp;&nbsp;TBD |
| **3. CFTC Compliance Testing and Reporting**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• **Initial Margin and Net Notional Compliance Testing** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Daily (per Fund/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o First 1 – 10 Funds | &nbsp;&nbsp;$11000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Remaining Funds | &nbsp;&nbsp;$6000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Weekly (per Fund/per year) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Monthly (per Fund/per year) | &nbsp;&nbsp;$1500 |
| **4. CPO Annual Exclusion Filing** (Rule 4.5) (per Fund/per year)<sup>B</sup> | &nbsp;&nbsp;$250 |
| **5. Other Special Services** (upon reasonable request)<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• **SEC Filing Services** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Form N-14 Filings (per filing) | &nbsp;&nbsp;TBD |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Form 485(a) Filings |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 1 – 5 Funds (per Fund/per filing) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 6 – 10 Funds (per Fund/per filing) | &nbsp;&nbsp;$3500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 11 or more Funds (per Fund/per filing) | &nbsp;&nbsp;$2500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Exemptive Application Filings (per filing) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• **Special Shareholder Meeting Services** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preparation of Form DEF14 and Meeting Materials | &nbsp;&nbsp;$10,000 to $15,000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• **IRS Form 8937** (per Fund/per form) | &nbsp;&nbsp;$1000 |

---

<sup>1</sup> **Domestic Custody and Fund Accounting Basis Point Fee**. The Domestic Custody and Fund Accounting Basis Point Fee will be calculated by multiplying the net asset value (NAV) of the Funds on the last business day of the month by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30 and then allocating to each Fund its pro rata share based on the Fund's percentage of the Funds' NAV. If a Fund holds foreign assets, the market value of such foreign assets will be subtracted from the NAV of the Fund for purposes of this calculation. The market value of foreign assets used for this calculation will be the amount calculated for purposes of applying the Foreign Custody Asset Charges.

<sup>2</sup> **Transaction Processing Fees**. These are fees charged for processing transactions on behalf of the Funds as a part of the custody services under the Custody Agreement. These Transaction Processing Fees, unless otherwise waived, apply whether a Fund or its third party investment managers entered into such transactions with or through a third party dealer or broker or with or through State Street or one of its affiliates (either acting as a trade counterparty or providing agency execution services). The processing fees are in addition to, and are not to be construed as payments in lieu of, any profit or other compensation (as described in Explanatory Note 6 below) that may be earned by such third party dealer or broker or by State Street or any of its affiliates in connection with such transaction.

 

<sup>3</sup> **Definition of Transaction for Billing Purposes; Transaction Count Methodology**. Unless otherwise stated in this Fee Schedule, a transaction includes, without limitation, each buy, sell, reset, exchange, pay down, maturity, assignment, roll, call exercise, warrant exercise, rights exercise, convertible security event, amendment, corporate action or similar investment related action or activity which requires processing by State Street. A complete list of transaction types is available from your client service representative.

The cancel and rebook of any trade at the instruction of the Fund will be treated as two additional transactions (e.g., in addition to the initial trade order) for billing purposes. With respect to TBAs, the initial trade, the subsequent cancel and each pool allocation will be treated as a separate transaction for billing purposes. The initial trade and subsequent cancel will be billed at the TBA rate and each allocation will be billed at the rate applicable to the relevant transaction/asset type. State Street reserves the right to adjust the definition of a billable transaction and adjust the transaction count methodology as new instruments, transaction types or trading techniques emerge.

 

<sup>4</sup> **Wire Transfers**. Charges for Wire Transfers apply to all wires sent or received for the account of a Fund, including, but not limited to, wires to or from demand deposit accounts established by State Street to facilitate transfer agency activity of a Fund's third party transfer agent (including Boston Financial Data Services), if applicable.

 

<sup>5</sup> **Automated Clearing House (ACH) Transfers**. Charges for ACH Transfer charges apply to all such transfers sent or received for the account of a Fund, including, but not limited to, ACH transfers to or from demand deposit accounts established by State Street to facilitate transfer agency activity of a Fund's third party transfer agent (including Boston Financial Data Services), if applicable.

 

<sup>6</sup> **Principal and Agency Trading Services**. State Street Global Markets, a separate division of State Street, offers principal or "dealer" trading services as well as agency execution services in a variety of asset classes, including most of those described in this schedule. State Street, acting as principal through its treasury division, also enters into repurchase transactions with custody clients. A Fund or its third party investment managers may select State Street to effect principal or agency transactions. These transactions, however, are conducted under contractual or other arrangements that are distinct from State Street's services and obligations under the Agreements, irrespective of whether trade orders are transmitted through the custody or trustee operations of State Street in accordance with the Agreements. When State Street acts as a counterparty (e.g., foreign exchange,

OTC derivatives, repurchase transactions, etc.) to a Fund, such transactions are principal transactions and State Street enters into them as a principal and not in a fiduciary, agency or similar capacity (regardless of any other relationships between State Street and the Funds under the Agreements). In connection with such principal or agency execution services, State Street may earn a profit or otherwise receive compensation from the Funds in a variety of forms, including a commission, subscription or click fee, revenue share, spread, mark-up, mark-down, interest, fee or similar amount.

 

<sup>7</sup> **Futures**. Each Buy, Short Sell, Buy to Close, Sell to Close, Cancel Buy, Cancel Short Sell, Cancel Buy to Close and Cancel Sell to Close will be treated as a separate transaction for billing purposes.

 

<sup>8</sup> **Options**. Each Buy, Write, Buy to Close, Sell to Close, Assignment, Exercise, Cancel Buy, Cancel Write, Cancel Buy To Close, Cancel Sell To Close, Cancel Assignment and Cancel Exercise will be treated as a separate transaction for billing purposes.

 

<sup>9</sup> **OTC Derivatives**. OTC Derivatives include OTC Swaps (Bi-lateral or centrally cleared) and OTC Options. Each trade capture for contract creation, amendment, novation or termination will be treated as a separate transaction for billing purposes.

 

<sup>10</sup> **Contracts for Differences**. Each buy, sell, reset, close or amendment will be treated as a separate transaction for billing purposes.

 

<sup>11</sup> **Manual Trade Surcharge**. This surcharge is payable in addition to the listed transaction fees (including, but not limited to, the transaction fees listed in Appendix 1) and applies to all transactions for which trade instructions are submitted in a manner that requires manual processing by State Street or otherwise does not facilitate straight-through processing.

 

<sup>12</sup> **OTC Swap and Option Reconciliations to Counterparty**. Includes reconciliation of position and total market value.

 

<sup>13</sup> **DDA Maintenance Fee**. The DDA Maintenance Fee will not apply to demand deposit accounts established solely for transfer agency activity whether related to a Fund's third party transfer agent or where State Street is performing the transfer agency services.

 

<sup>14</sup> **Pricing Fees**. The stated rates are based on use of State Street's standard pricing vendors. The monthly fee will be based on the number of positions held by each Fund at month-end.

 

<sup>15</sup> **Committed Par**. The term Committed Par means the amount a lender has agreed to lend to a borrower, irrespective of the amount of outstanding loans under a loan commitment at any time.

 

<sup>16</sup> **Committed Par Fee**. The Committed Par Fee will be calculated by multiplying the sum of the Committed Par of each loan serviced for each Fund at month-end by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30.

<sup>17</sup> **Non-USD Committed Par**. Any Committed Par denominated in a foreign currency (if any) shall be converted to USD for billing purposes using the same currency exchange rates used by the Fund to calculate its NAV.

 

<sup>18</sup> **Fund Administration Basis Point Fee**. The Fund Administration Basis Point Fee will be calculated by multiplying the average monthly NAV of the Funds by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30, and then allocating to each Fund its pro rata share based on the Fund's percentage of the Funds' NAV. The average monthly NAV of each Fund will be calculated by taking the sum of the Fund's daily NAVs for each day of the calendar month (for each non-business day, the preceding business day's NAV will be used unless the Fund requests use of a different calculation methodology) and dividing that amount by the number of days in the month. State Street reserves the right to bill on the average monthly *<u>gross</u>* asset value rather than the average monthly NAV of a Fund if the use of leverage (including but not limited to short positions) by the Fund reduces its average monthly NAV and thereby reduces by any material amount the Fund Administration Basis Point Fee that otherwise would be payable in the absence of such leverage.

 

<sup>19</sup> **Cross Product Service Fees**. The Cross Product Fees and charges do not constitute out-of-pocket or pass-through expenses (i.e., they include a mark-up and/or overhead cost allocation). Changes to the Cross Product Service Fees and additional fees and charges of a similar nature or type may be implemented by State Street upon 90 day's written notice, subject to agreement between State Street and the Funds.

 

<sup>20</sup> **SWIFT**. Stated fee applies to each outbound SWIFT message generated in relation to a Fund by three State Street systems: Securities Management and Control ("SMAC") messages, Global Securities Management and Control ("GSMAC"), and Multicurrency Horizon ("MCH") messages. SMAC and GSMAC SWIFT messages facilitate particular transactions. MCH SWIFT messages communicate cash statements, holding reports and trade confirmations.

 

<sup>21</sup> **SOC 1**. Service Organization Controls Report prepared in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization (or any successor, replacement or equivalent report that may be introduced from time to time).

 

<sup>22</sup> **Dedicated Hardware / Transmission Lines**. Fee applies if the Funds require use of specific technological hardware that is not otherwise part of State Street's standard technology platform or use of a data transmission connection that is solely dedicated to the Funds. The Fee rate will be agreed after an analysis of the Funds' requirements is completed.

 

<sup>23</sup> **Data Extracts (Standard)**. Stated fee applies to the use of any of the 15 (as of March 25, 2015) CTI MDB Standard Outbound data extracts. For a current listing of CTI MDB Standard Outbound data extracts, please contact your client service representative.

 

<sup>24</sup> **Data Extracts (Non-standard)**. Stated fee applies to the use of any custom created CTI MDB Outbound data extracts.

 

<sup>25</sup> **Custom or Manual Reports (per report)**. Stated fee applies to the one time or recurring creation and distribution of ad-hoc or custom reporting by a State Street employee.

<sup>26</sup> **Customized Programming or Transmissions**. State Street will charge the stated hourly rate for (i) the creation and implementation of Standard or Non Standard Data Extracts as defined above; (ii) for the implementation of dedicated hardware or transmission lines as defined above; and/or (iii) for the implementation any Fund requested customized programming.

 

<sup>27</sup> **Maintenance of Customized Programming or Transmissions**. Stated fee applies to ongoing maintenance required to (i) support necessary infrastructure, information security protocols or data contained in Standard or Non Standard Data Extracts as defined above; (ii) ongoing support for dedicated hardware or transmission lines; and (iii) ongoing support for any Fund requested customized programming.

 

<sup>28</sup> **Subcustodian and Depository Out-of-Pocket Expenses**. Subcustodian and Depository Out-of-Pocket Expenses include, without limitation, expenses for account opening, maintenance and administration, courier/delivery, depository charges, funds transfer fees, issuance of nit, late trades, market entrance charges, name change, proxy, registration, rematerialization, remittance, re-registration, stamp duty or tax, stock exchange levies and tax reclaims, among others. A complete list of Subcustodian and Depository Out-of-Pocket Expenses is available from your client service representative.

 

<sup>29</sup> **Fair Value Vendor Charges**. At the request and direction of the Funds, State Street will source fair value pricing from the Funds' preferred vendor(s). All amounts invoiced to State Street by such vendors with respect to fair value pricing for the Funds will be charged to the Funds as a reimbursable out-of-pocket expense.

<sup>30</sup> **Pricing (Non-standard Vendors)**. At the request and direction of the Funds, State Street will source securities and asset pricing from non-standard vendors. All amounts invoiced to State Street by such vendors with respect to non-standard vendor pricing for the Funds will be charged to the Funds as a reimbursable out-of-pocket expense. A complete listing of standard pricing vendors is available from your client service representative.

<sup>31</sup> **Reasonable External Legal Expenses**. Reasonable external legal expenses incurred by State Street will be charged to the Funds as a reimbursable out-of-pocket expense in circumstances permitted by the Agreements or as otherwise agreed by State Street and the Funds.

 

<sup>32</sup> **Cost of responding to third party subpoenas and/or regulatory inquires**. The fee of $5,000 is not an out-of-pocket or pass-through expense and is intended to defray internal costs that may be associated with responding to third party subpoenas and/or regulatory inquires. These costs typically include, without limitation, the cost of management and staff time, the use of internal legal, compliance, risk management, business controls, IT and other resources, and data and document retention, storage and production costs, among others. State Street shall have no obligation to account to the Funds for the type or amount of internal costs actually incurred and such costs may be less than (or exceed) the amount of the fee.

<sup>33</sup> **Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges**. The Foreign Custody and Fund Accounting Asset Charges will be calculated by multiplying the USD market value of the cash, securities and other assets held in custody on behalf of each Fund at month-end by the applicable basis point rate(s) (based on custody location), dividing the result (or the sum of such results) by 360 and multiplying that amount by 30. With respect to assets held outside of the U.S., custody location is determined for billing purposes by reference to the jurisdiction in which State Street, its subcustodian or a Securities System, as the case may be, holds the relevant asset or, if the asset is immobilized or dematerialized and record ownership is maintained only in book-entry form, custody location means the jurisdiction of the Securities System through which State Street maintains the record of the Fund's entitlement to such asset, provided that the custody location for on-book currencies will be the jurisdiction that issues the relevant currency. For purposes of this fee calculation, State Street will utilize the same local currency market values and the same currency exchange rates to convert those values to USD that are used to calculate the NAV of each Fund, provided that the absolute value of any negative cash, security or other asset position will be used. For custody only Funds, State Street will utilize its standard pricing vendors to obtain a market value for each position. If a market value for a position is not available from such vendors, State Street will utilize the same market value for such position that is used by the Fund to calculate its NAV or otherwise value its portfolio, which value will be supplied by the Fund promptly upon request. If following such a request a Fund is unable to provide a market value within five (5) days of month-end, State Street will utilize the market value of the position from the prior month-end and is authorized to continue to use such value until an update is supplied by the Fund or otherwise becomes available from State Street's standard pricing vendors. For illiquid positions, each Fund will be responsible for supplying State Street with a market value as of the date of purchase (or initial custody by State Street) and at least annually thereafter. The Foreign Custody Transaction Charges are fees imposed for processing transactions on behalf of each Fund in the relevant foreign market as part of the custody services. The Manual Trade Surcharge specified in Section I of the Fee Schedule will also be assessed on a foreign custody transaction, as applicable. The Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges applicable with respect to custody services in any country not listed in Appendix 1 above will be negotiated and agreed by State Street and the Funds prior to investment in such country.

**Custody Only.** Reference to "custody only" refers to any custody relationship with a Fund where State Street does not also provide fund accounting or portfolio accounting services to such Fund.

## Ex-99.(H)(2)(E)

**Exhibit 99.(h)(2)(E)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**FOURTH AMENDMENT**

**TO**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Fourth Amendment to the Sub-Administrative Services Fee Agreement is made as of October 15, 2019 (the "Amendment") by and between the American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, the American Beacon Institutional Funds Trust, a Delaware statutory trust, the American Beacon Sound Point Enhanced Income Fund and the American Beacon Apollo Total Return Fund, each a Delaware statutory trust, (collectively, the "Trusts"), and American Beacon Advisors, Inc., a Delaware corporation (the "Manager"). Capitalized terms used in this Amendment without definition shall have the respective meanings ascribed to such terms in the Agreement (as defined below).

WHEREAS, the Manager and the Trusts entered into a Sub-Administrative Services Fee Agreement effective as of April 30, 2017 (the "Agreement");

WHEREAS, the parties wish to amend the Agreement as set forth below:

Manager and the Trusts wish to remove the American Beacon Ionic Strategic Arbitrage Fund as party to the Agreement and update Schedules A and B to the Agreement as set forth below;

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Agreement, pursuant to the terms thereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Agreement and its Schedule A and Schedule B are amended to reflect the removal of the following Funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. American Beacon Ionic Strategic Arbitrage Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Schedule A and Schedule B are hereby deleted in their entirety and replaced with the updated Schedule
A and Schedule B attached.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as specifically amended hereby, all other terms and conditions of the Agreement shall remain in
full force and effect. This Amendment is incorporated in its entirety into the Agreement, and this Amendment and said Agreement shall
be read and interpreted together as the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective seals to be hereunto affixed, as of the day and year first above written.

AMERICAN BEACON FUNDS

AMERICAN BEACON SELECT FUNDS

AMERICAN BEACON INSTITUTIONAL FUNDS TRUST

AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND

AMERICAN BEACON APOLLO TOTAL RETURN FUND

---

| | |
|:---|:---|
| By: | /s/ Gene L. Needles, Jr. |
|  | Gene L. Needles, Jr. |
|  | President |

---

AMERICAN BEACON ADVISORS, INC.

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| | |
|:---|:---|
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President and Chief Operating Officer |

---

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE A**

**American Beacon Funds**

American Beacon AHL Managed Futures Strategy Fund

American Beacon AHL Target Risk Fund

American Beacon Acadian Emerging Markets Managed Volatility Fund

American Beacon Alpha Quant Core Fund

American Beacon Alpha Quant Dividend Fund

American Beacon Alpha Quant Quality Fund

American Beacon Alpha Quant Value Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Growth II Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Continuous Capital Emerging Markets Fund

American Beacon Crescent Short Duration High Income Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon GLG Total Return Fund

American Beacon Frontier Markets Income Fund

American Beacon International Equity Fund

American Beacon Large Cap Value Fund

American Beacon Mid-Cap Value Fund

American Beacon SGA Global Growth Fund

American Beacon Shapiro Equity Opportunities Fund

American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon Sound Point Floating Rate Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon Tocqueville International Value Fund

American Beacon TwentyFour Strategic Income Fund

American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUND**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

American Beacon Sound Point Enhanced Income Fund

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

American Beacon Apollo Total Return Fund

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE B**

**COMBINED FEE SCHEDULE**

**American Beacon Funds ("AB Funds")**

**American Beacon Select Funds ("AB Select Funds")**

**American Beacon Institutional Funds Trust ("AB Institutional Funds")**

**American Beacon Sound Point Enhanced Income Fund ("Sound Point Fund")**

**American Beacon Apollo Total Return Fund ("Apollo")**

**(each a "Fund" and collectively, the "Funds")**

**American Beacon Advisors, Inc. (the "Manager")**

**Amended and Restated Confidential Fee Schedule**

**Dated May 8, 2018**

**CUSTODY, FUND ACCOUNTING, AND FUND ADMINISTRATION Services**

This Amended and Restated Confidential Fee Schedule amends and restates the fee schedule entered into by the parties hereto dated May 8, 2018. This Amended and Restated Fee Schedule is effective as of April 30, 2017, except as otherwise noted herein (the "**Effective Date**"), and except that it is effective with respect to the Sound Point Fund as of May 8, 2018 and the Apollo Fund as of August 26, 2018.

Reference is hereby made to (a) the Custodian Agreement dated as of December 1, 1997 by and between State Street Bank and Trust Company ("**State Street**") and AB Funds (the "**AB Funds Custody Agreement**"); (b) the Custodian Agreement dated as of December 31, 1999 by and between State Street and AB Select Funds (the "**AB Select Funds Custody Agreement**"), (c) the Custodian Agreement dated as of March 24, 2017 by and between State Street and the AB Institutional Funds (the "**AB Institutional Funds Custody Agreement**"), (d) the Custodian Agreement dated as of May 8, 2018 by and between State Street and the Funds specified therein, (the "**AB Master Custody Agreement**," and collectively, the "**Custody Agreements**"), and (e) the Sub-Administration Agreement dated as of September 6, 2017 by and between State Street and the Manager (the "**Sub-Administration Agreement**", and collectively with the Custody Agreements, the "**Agreements**," as the same may be amended, supplemented, restated or otherwise modified from time to time). The parties have entered into this fee schedule ("**Fee Schedule**") effective as of the Effective Date, in order to memorialize their agreement on the compensation to be paid by the Funds and the Manager to State Street for the performance of the services specified in the Agreements (the "**Services**"). This Fee Schedule shall be subject to the terms and conditions of the Agreements as if it were a part thereof. Unless otherwise agreed by the parties, this Fee Schedule shall apply to the provision of the Services to each Fund which is a party or is otherwise subject to the Agreements from time to time. In the event of any conflict between the terms of an Agreement and the terms of this Fee Schedule relating to fees, charges, expenses or other financial terms, the terms of this Fee Schedule shall control. Unless otherwise defined, capitalized terms used herein shall have the meaning given to them in the relevant Agreement, as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** **Custody and Fund Accounting** 

In consideration for the provision of custody and fund accounting services by State Street pursuant to the Custody Agreement and the discharge of its other obligations thereunder, each Fund shall be obligated to pay State Street the fees and charges set forth in this Section I, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, each Fund shall pay a domestic custody and fund accounting fee equal to the Domestic Custody and Fund Accounting Basis Point Fee, plus the applicable Foreign Custody Fee, Transaction Processing and Activity Based Fees and DDA Charges, plus the applicable Feeder Fees, Pricing Fees, Money Market Fund Services Fees and Other Fund Accounting Charges, in each case as specified below.<sup>1</sup>

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| | |
|:---|:---|
| **1. Domestic Custody and Fund Accounting Basis Point Fee** (Complex Wide/per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net Asset Value of Complex Wide Assets</u> | &nbsp;&nbsp;<u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0 - $17 Billion | &nbsp;&nbsp;1.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$17- $40 Billion | &nbsp;&nbsp;0.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $40 Billion | &nbsp;&nbsp;0.50 |
| **2. Foreign Custody and Fund Accounting Fee** (per Fund/per month and per transaction)<sup>A</sup> | &nbsp;&nbsp;See <u>Appendix 1</u> |

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| | |
|:---|:---|
| **3. Transaction Processing and Activity Based Fees**<sup>2 A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Domestic Transaction Processing Fees</u><sup>3</sup> (per transaction) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State Street Repurchase Agreements (Repo) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fund of Fund Trades | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• DTC or Fed Book Entry – Automated/Electronic Trade Instruction | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mortgage Backed Securities Principal and Income Paydowns | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Physical Settlement Processing | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Collateral/Memo Pledging (Fed Book Entry & DTC) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wire Transfers (Fed Wires & Interbank Transfers)<sup>4</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Automated Clearing House (ACH) Transfers<sup>5</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Automated/Electronic Trade Instruction | &nbsp;&nbsp;$25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Manual Trade Instruction (Fax, etc.) | &nbsp;&nbsp;$25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Foreign Exchange executed through State Street Global Markets<sup>6</sup> | &nbsp;&nbsp; No Charge –<br> See Explanatory Note 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Futures<sup>7</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Managed Futures Funds, as identified by the Funds and State Street from time to time : effective April 1, 2018* | &nbsp;&nbsp;$5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Options<sup>8</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OTC Derivatives<sup>9</sup> | &nbsp;&nbsp;$25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contracts for Differences<sup>10</sup> o *This fee is applicable with respect to American Beacon Numeric Integrated Alpha Fund (DVK6) effective November 1, 2016 and for all other Funds is applicable as of the effective date.*  | &nbsp;&nbsp;$3.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• TBAs | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All Other Trades | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Manual Trade Surcharge</u> (per transaction)<sup>11</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Custody Fees</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OTC Swap and Option Reconciliations to Counterparty (monthly/per position)<sup>12</sup> | &nbsp;&nbsp;$45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Checks (per check, per issuance/certification/stop payment) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rule 17f-5 Materials (Digital, CD or Printed) (per Fund/per year for Funds with foreign holdings) | &nbsp;&nbsp;Waived |

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| | |
|:---|:---|
| **4. DDA Charges**<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>USD DDA Maintenance Fee</u> (per DDA/per month)<sup>13</sup> | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Other DDA Charges and Expenses and DDA Limits</u> | &nbsp;&nbsp;See <u>Appendix 2</u> |

---

 

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| | |
|:---|:---|
| **5. Feeder Fees** (per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• First Two Feeders (each) | &nbsp;&nbsp;$12000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Additional Feeders (each) | &nbsp;&nbsp;$9600 |

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| | |
|:---|:---|
| **6. Pricing Fees**<sup>14</sup> ,<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Pricing</u> (per position/per month) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Municipal, Government, Corporate, Convertible Bonds, Foreign Bonds, CMOs, CDs | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exchange Traded Options, Futures and Private Placements | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Equities, Preferred Stocks | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loans (Thomson Reuters or Markit Loans) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Fair Valuation/State Street Pricing Service</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funds with 5 or more non-US holdings (per Fund/per year) | &nbsp;&nbsp;$4000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Broker Quotes / Directed Pricing Override (per quote or override) | &nbsp;&nbsp;Waived |

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| | |
|:---|:---|
| **7. Money Market Fund Services Fees** (as applicable)<sup>(Refer to Appendix 3 for Applicable Party)</sup> | &nbsp;&nbsp;See <u>Appendix 3</u> |

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| | |
|:---|:---|
| **8. Other Fund Accounting Charges**<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Class Fund Charge - each additional class (in excess of one) (per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Manager/Sleeves (per sleeve/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Liquid Alternative Funds, as identified by the Funds and State Street from time to time* | &nbsp;&nbsp;$7500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ASC 820 (formerly FAS 157) Reporting (per Fund/per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ASC 815 (formerly FAS 161) Reporting (per Fund/per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• NAV Distributor (per Fund/per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State Street Compliance38 (per Fund/per year) | &nbsp;&nbsp;$800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fund Merger, Consolidation, or other Reorganization (one time charge/per Fund/per event) | &nbsp;&nbsp;$10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Yield Calculations, including SEC Yield (per calculation/per Fund/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Initial | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each additional | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transmission of Data to Morningstar |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Up to 50 funds (per Fund/per year, plus sleeve fee) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funds 51-100 (per Fund/per year, plus sleeve fee) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For each Fund thereafter (per Fund/per year, plus sleeve fee) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Manager/Sleeves (per sleeve/per year) | &nbsp;&nbsp;N/A |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II.** **Loan Services** 

In consideration for the provision of loan services by State Street pursuant to the Custody Agreement and the discharge of its other obligations thereunder, each Fund shall be obligated to pay State Street the fees and charges set forth in this Section II, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, each Fund shall pay a loan services fee equal to the greater of the Committed Par<sup>15</sup> Fee and the Committed Par Minimum Fee, in each case as specified below.<sup>16</sup>

---

| | |
|:---|:---|
| **1. Committed Par Fee** (per Fund/per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Committed Par of Loans</u><sup>17</sup> | &nbsp;&nbsp;<u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0 - $500 Million | &nbsp;&nbsp;3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $500 Million - $1 Billion | &nbsp;&nbsp;2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $1 Billion | &nbsp;&nbsp;2.0 |
| **Committed Par Minimum Fee** (per Fund/per month) | &nbsp;&nbsp;$3750 |

---

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III.** **Fund Administration** 

In consideration for the provision of fund administration services by State Street pursuant to the Sub-Administration Agreement and the discharge of its other obligations thereunder, the Manager shall be obligated to pay State Street the fees and charges set forth in this Section III, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, the Manager shall pay a fund administration fee equal to the greater of the Fund Administration Basis Point Fee and the Fund Administration Minimum Fee, plus any applicable Compliance Monitoring Fee, Fund Reorganization Fees, Other Money Market Fund Services Fees and Other Fund Administration Services Fees, in each case as specified below.<sup>18</sup> The Fund and the Manager agree that, to the extent applicable, a Fund may reimburse the Manager for certain services hereunder as otherwise agreed by the Manager and the Funds. Each Fund is responsible for its own portion of such charges, if any.

 

---

| | |
|:---|:---|
| **1. Fund Administration Basis Point Fee** (Complex Wide/per year)<sup>C</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net Asset Value of Complex Wide Assets</u> | &nbsp;&nbsp;<u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First $10 billion | &nbsp;&nbsp;0.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Next $10 billion | &nbsp;&nbsp;0.55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thereafter | &nbsp;&nbsp;0.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Fee Discount (Complex Wide/per year)</u>** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year 1 Only | &nbsp;&nbsp;$200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year 2 Only | &nbsp;&nbsp;$100000 |
| **2. Fund Administration Minimum Fee** (per Fund/per month)<sup>C</sup> | &nbsp;&nbsp;$4625 |

---

---

| | |
|:---|:---|
| **3. Compliance Monitoring Fee** (per Fund/per year)<sup>D</sup> | &nbsp;&nbsp;$5500 |

---

---

| | |
|:---|:---|
| **4. Fund Reorganization Fee –** Fund Merger, Consolidation, or other Reorganization (one time charge/per Fund/per event)<sup>A</sup> | &nbsp;&nbsp;$10000 |

---

---

| | |
|:---|:---|
| **5. Other Money Market Fund Services Fees** (as applicable)<sup>(Refer to Appendix 3 for Applicable Party)</sup> | &nbsp;&nbsp;See <u>Appendix 3</u> |

---

---

| | |
|:---|:---|
| **6. Other Fund Administration Services Fees** (as applicable)<sup>(Refer to Appendix 4 for Applicable Party)</sup> | &nbsp;&nbsp;See <u>Appendix 4</u> |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.** **Cross Product Service Fees** <sup>A</sup>

In addition to any other fees, charges or expenses that may be payable under this Fee Schedule, each Fund or the Manager shall be obligated to pay State Street the fees and charges set forth in this Section IV, as applicable, based on usage of the listed product or service in connection with the Services.<sup>19</sup>

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;• SWIFT Messages (per message)<sup>20</sup>(Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• CCO Attestation Report (per Semi-Annual Report/per Fund) (Fund) | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;&nbsp;• SAS99 (audit firm data feeds) (per feed/ per annum) (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Document and Data Archiving/Storage (per Fund, per month) (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• SOC 1 Charges (per Fund, per month)<sup>21</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Dedicated Hardware / Transmission Lines (per Fund/per month)<sup>22</sup> (Fund) | &nbsp;&nbsp; Waived |
| &nbsp;&nbsp;&nbsp;• Data Extracts (Standard) (per extract/per annum)<sup>23</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Data Extracts (Non-standard) (per extract/per annum)<sup>24</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Custom or Manual Reports (per report/per annum)<sup>25</sup> (Fund or Manager as applicable) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Development of standard or customized programming or transmissions<sup>26</sup> (Fund or Manager, as applicable) | &nbsp;&nbsp;$150 per hour |
| &nbsp;&nbsp;&nbsp;• Maintenance of customized programming or transmissions (per year)<sup>27</sup> (Fund or Manager, as applicable) | &nbsp;&nbsp;$4000 |
| &nbsp;&nbsp;&nbsp;• Vendor oversight and/or due diligence requests (including questionnaires) (per request/ questionnaire /visit) (Fund) | &nbsp;&nbsp;Waived |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V.** **Out of Pocket Expenses** <sup>A</sup>

Out-of-pocket expenses incurred by State Street (and by its subcustodians and depositories) on behalf of each Fund in connection with the performance of the Services will be passed through to the Funds or the Manager each month (as designated below), including, but not limited to, the following expenses. The intent of these designations to the Funds or the Manager is to reflect that certain expenses are associated with custody/fund accounting and certain expenses are associated with fund administration services; as noted, certain expenses may be associated with both custody/fund accounting and fund administration services.

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;• Subcustodian and Depository Out-of-Pocket Expenses<sup>28</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• Miscellaneous expenses incurred in connection with foreign custody (e.g., stamp duties, registration costs, script fees, special transportation costs, etc.) (Fund) |
| &nbsp;&nbsp;&nbsp;• Fair Value Vendor Charges<sup>29</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• Pricing (Non-standard Vendors)<sup>30</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• ADR and GDR charges (Fund) |
| &nbsp;&nbsp;&nbsp;• Stock Exchange Fees (Fund) |
| &nbsp;&nbsp;&nbsp;• DST (agency charges/output fees/underwriting charges) (Fund) |
| &nbsp;&nbsp;&nbsp;• NSCC Settlement Charges (Fund) |
| &nbsp;&nbsp;&nbsp;• Tax Certifications and Form Filing (Fund) |
| &nbsp;&nbsp;&nbsp;• Courier or Overnight Delivery (plus $1 handling fee) (Fund or Manager, as applicable) |
| &nbsp;&nbsp;&nbsp;• Notary and Governmental Charges or Filing Fees (Fund) |
| &nbsp;&nbsp;&nbsp;• Reasonable External Legal Expenses<sup>31</sup> (Fund or Manager, as applicable) |
| &nbsp;&nbsp;&nbsp;• Travel, including transportation, meals and lodging, for Fund Board Meeting attendance and other business related travel at a Fund's request (Fund) |
| &nbsp;&nbsp;&nbsp;• Cost of responding to third party subpoenas and/or regulatory inquires related to the Funds or the Funds' investment adviser(s) or manager(s) (plus a fee of $5,000 per subpoena<sup>32</sup>) (Fund or Manager, as applicable) |

---

Out-of-pocket expenses incurred by State Street (and by its subcustodians and depositories) will be billed to the Funds or the Manager based upon actual usage of a service or an allocated or derived charge for the use of the service for the benefit of the Funds or the Manager, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VI.** **Additional Services** <sup>A</sup>

In the event one or more of the Funds or the Manager request that State Street (i) provide new or additional services not otherwise expressly required by the Agreements, (ii) modify or otherwise change the Services (including, but not limited to, the elements and/or frequency of any task or function performed as part of the Services), (iii) change the means or manner in which the Services are provided, (iv) change the location from or to which the Services are performed or (v) support or handle any non-standard, one-off or special activities, State Street shall be entitled to additional compensation (to be mutually agreed with the Fund(s)) as a condition to its agreement to implement any such request. For avoidance of doubt, the terms of this Section VII apply, without limitation, to material changes in the legal or regulatory requirements applicable to one or more of the Funds or material changes in the legal, tax or regulatory elections or status of one or more of the Funds which result in changes to the service requirements of such Fund(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VII.** **Assumptions** 

The Funds and the Manager acknowledge that the overall fee structure set forth in this Fee Schedule has been agreed by the parties based on information provided by the Funds and the Manager and on the basis of certain mutually agreed assumptions which have been set forth in a separate written Projected Business Profile. In the event that the assumptions set forth in the Projected Business Profile prove to be inaccurate, including, but not limited to, if the gross revenue derived from the overall commercial relationship between State Street and the Funds and the Manger is materially lower than what the Parties agreed would be a reasonable assumption at the time the Agreements were executed, the Parties agree to negotiate an adjustment to such fee structure in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VIII.** **Confidentiality** 

This Fee Schedule constitutes confidential information of the Parties under the terms of the Agreements and shall not be disclosed to any legal or natural person except as expressly permitted thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IX.** **Payment of Fees** 

The service fees, charges and reimbursable expenses payable under this Fee Schedule by the Funds and the Manager will be invoiced to the Funds and the Manager, as applicable, on a monthly basis and shall be due upon receipt. Beginning thirty days from the date of the invoice, State Street will be entitled to charge interest (at the then applicable overdraft interest rate) on any undisputed amounts that remain unpaid.

Unless otherwise expressly stated, yearly fees will be invoiced in twelve monthly installments as part of the standard invoicing process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X.** **Term** 

This Fee Schedule shall become effective as of the Effective Date, shall remain in effect for an initial period of five (5) years, and shall automatically renew for successive one-year periods from year to year thereafter, unless otherwise modified or terminated in accordance with the terms of the Agreements.

<sup>A</sup> Each Fund is responsible for its portion of the charges, as applicable

<sup>B</sup> The Manager is responsible for the charge

<sup>C</sup> The Manager is responsible for the charge and will charge back the following amounts to the applicable Fund:

---

| | |
|:---|:---|
| Wash Sales | $3,000 per year per single manager Fund |

---

---

| | |
|:---|:---|
|  | $5,000 per year per multi-manager Fund |
| Qualified Dividend Income | $500 per year, per Fund |

---

<sup>D</sup> The Compliance Monitoring Fee will be charged as follows:

---

| | |
|:---|:---|
| Manager | $4,000 per year, per Fund |
| Applicable Fund | $1,500 per year, per Fund |

---

**<u>APPENDIX 1</u>**<sup>A</sup>

**Foreign Custody and Fund Accounting Fees**

On a monthly basis, each Fund shall pay a Foreign Custody Fee equal to the Foreign Custody and Fund Accounting Asset Charges, plus the Foreign Custody Transaction Charges\*, in each case as specified below.

*\***<u>Note</u>**: Foreign custody transaction charges apply only to Emerging Markets Funds, as identified by the Funds and State Street from time to time.*

**Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges<sup>33</sup>**

 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Market** | &nbsp;&nbsp; **Foreign Custody and Fund Accounting**<br> **Asset Charge**<br> **(Basis Points)** | &nbsp;&nbsp; **Foreign**<br> **Custody Transaction Charges** | &nbsp;&nbsp;**Market** | &nbsp;&nbsp; **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | &nbsp;&nbsp;**Foreign Custody Transaction Charges** |
| &nbsp;&nbsp;Albania | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;Ghana | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Argentina | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Greece | &nbsp;&nbsp;20.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Australia | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Hong Kong | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$15 |
| &nbsp;&nbsp;Austria | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Hungary | &nbsp;&nbsp;25.0 | &nbsp;&nbsp;$60 |
| &nbsp;&nbsp;Bahrain | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;Iceland | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$50 |
| &nbsp;&nbsp;Bangladesh | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;India | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$35 |
| &nbsp;&nbsp;Belgium | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$30 | &nbsp;&nbsp;Indonesia | &nbsp;&nbsp;8.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp; Bermuda<br> Bolivia | &nbsp;&nbsp; 15.0<br> 45.0 | &nbsp;&nbsp; $90<br> $125 | &nbsp;&nbsp; Ireland<br> Luxembourg | &nbsp;&nbsp; 5.0<br> 35.0 | &nbsp;&nbsp; $40<br> $100 |
| &nbsp;&nbsp;Bosnia & Herzegovina | &nbsp;&nbsp;65.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Israel | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$40 |
| &nbsp;&nbsp;Botswana | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Italy | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$25 |
| &nbsp;&nbsp;Brazil | &nbsp;&nbsp;18.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Ivory Coast\* | &nbsp;&nbsp;75.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Bulgaria | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Jamaica | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Canada | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;$20 | &nbsp;&nbsp;Japan-Mizuho | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;$20 |
| &nbsp;&nbsp;Cayman Island | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$75 | &nbsp;&nbsp;Jordan | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Cedel\Clearstream | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;$10 | &nbsp;&nbsp;Kazakhstan | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$135 |
| &nbsp;&nbsp;Chile | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Kenya | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;China | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Kuwait | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Colombia | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Latvia | &nbsp;&nbsp;65.0 | &nbsp;&nbsp;$50 |
| &nbsp;&nbsp;Costa Rica | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$80 | &nbsp;&nbsp;Lebanon | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Croatia | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Lithuania | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$50 |
| &nbsp;&nbsp;Cyprus | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Malawi | &nbsp;&nbsp;60.0 | &nbsp;&nbsp;$200 |
| &nbsp;&nbsp;Czech Republic | &nbsp;&nbsp;20.0 | &nbsp;&nbsp;$40 | &nbsp;&nbsp;Malaysia | &nbsp;&nbsp;8.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp;Denmark | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Malta | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Ecuador | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Mauritius | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Egypt | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$40 | &nbsp;&nbsp;Mexico | &nbsp;&nbsp;2.5 | &nbsp;&nbsp;$20 |
| &nbsp;&nbsp;Estonia | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$50 | &nbsp;&nbsp;Morocco | &nbsp;&nbsp;25.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Euroclear | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;$5 | &nbsp;&nbsp;Namibia | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Finland | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$45 | &nbsp;&nbsp;Netherlands | &nbsp;&nbsp;4.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp;France | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;New Zealand | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$25 |
| &nbsp;&nbsp;Georgia | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$200 | &nbsp;&nbsp;Nigeria | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Germany | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Norway | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$40 |

---

\* Ivory Coast includes Benin, Burkina Faso, Mali, Niger, Senegal, Guinea-Bissau and Togo.

**<u>APPENDIX 1</u>**<sup>A</sup>

**Foreign Custody and Fund Accounting Fees**

**- Continued -**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Market** | &nbsp;&nbsp; **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | &nbsp;&nbsp; **Foreign**<br> **Custody Transaction Charges** | &nbsp;&nbsp;**Market** | &nbsp;&nbsp; **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | &nbsp;&nbsp;**Foreign Custody Transaction Charges** |
| &nbsp;&nbsp;Oman | &nbsp;&nbsp;65.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;Sri Lanka | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Pakistan | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Srpska | &nbsp;&nbsp;65.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Palestine | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;Swaziland | &nbsp;&nbsp;75.0 | &nbsp;&nbsp;$200 |
| &nbsp;&nbsp;Panama | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Sweden | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$40 |
| &nbsp;&nbsp;Peru | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Switzerland | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;$25 |
| &nbsp;&nbsp;Philippines | &nbsp;&nbsp;8.0 | &nbsp;&nbsp;$40 | &nbsp;&nbsp;Taiwan | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp;Poland | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$40 | &nbsp;&nbsp;Tanzania | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Portugal | &nbsp;&nbsp;10.0 | &nbsp;&nbsp;$50 | &nbsp;&nbsp;Thailand | &nbsp;&nbsp;2.5 | &nbsp;&nbsp;$20 |
| &nbsp;&nbsp;Puerto Rico | &nbsp;&nbsp;10.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Trinidad & Tobago | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Qatar | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$75 | &nbsp;&nbsp;Tunisia | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Romania | &nbsp;&nbsp;75.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Turkey | &nbsp;&nbsp;12.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp;Russia | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$300 | &nbsp;&nbsp;Uganda | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$110 |
| &nbsp;&nbsp;Saudi Arabia | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Ukraine | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$110 |
| &nbsp;&nbsp;Serbia | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;United Arab Emirates | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Singapore | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$20 | &nbsp;&nbsp;United Kingdom | &nbsp;&nbsp;0.75 | &nbsp;&nbsp;$5 |
| &nbsp;&nbsp;Slovak Republic | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$$75 | &nbsp;&nbsp;Uruguay | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Slovenia | &nbsp;&nbsp;75.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Venezuela | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;South Africa | &nbsp;&nbsp;2.5 | &nbsp;&nbsp;$10 | &nbsp;&nbsp;Vietnam | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;South Korea | &nbsp;&nbsp;10.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Zambia | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp; Spain<br>| &nbsp;&nbsp; 5.0<br>| &nbsp;&nbsp; $30<br>| &nbsp;&nbsp; Zimbabwe<br>| &nbsp;&nbsp; 35.0<br>| &nbsp;&nbsp; $100<br>|

---

**<u>APPENDIX 2</u>**<sup>A</sup>

**Other DDA Charges and Expenses and DDA Limits**

<u>Interest Rates and Charges</u>

Unless State Street notifies the Funds otherwise, demand deposit accounts established and maintained on behalf of the Funds are non-interest bearing accounts. State Street may elect to pay interest on deposit balances at such times and at such rates as it may specify from time to time. Interest rates, if applicable, will vary by currency and market conditions and State Street may cease paying interest, change interest rates, or apply (and adjust) negative interest rates or equivalent charges or fees on designated currencies, from time to time at its sole discretion.

Details on applicable interest rates, equivalent charges or fees are available upon request.

<u>Overdrafts</u>

Except in accordance with the terms of a committed credit facility established with State Street, Funds are not entitled to overdraw their cash deposit accounts. Cash advances or other extensions of credit are made at the discretion of State Street. In the event of an overdraft which exceeds a designated threshold (currently set at $50,000 for USD overdrafts), State Street will impose an interest charge on the amount of the overdraft during the period an account is overdrawn. The interest rates applicable to overdrafts and the applicable overdraft thresholds (if any) are set on a periodic basis by State Street for each currency at its sole discretion, taking into account market conditions and other relevant commercial considerations. Unless otherwise agreed in writing, overdrafts are repayable in full either (i) on demand or (ii) within five business days, whichever is earlier. Interest charges will be accrued on a daily basis and debited from the applicable deposit account monthly. Details on applicable interest rates and overdraft thresholds are available upon request from your client service representative.

<u>Deposit Limits</u>

Subject to applicable law and regulation, State Street may refuse to accept, limit the amount of or return all or a portion of certain types of cash deposits and/or balances, including non-operational deposits.

**<u>APPENDIX 3</u>**

**Money Market Fund Services**

(as applicable)

---

| | |
|:---|:---|
| **1. Money Market Fund Reporting**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Monthly Form N-MFP (per Fund/per year) | &nbsp;&nbsp;$11500 |
| **2. Daily And Weekly Liquid Asset Compliance Testing and Daily Website Disclosures** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Taxable Fund (per Fund/per year) | &nbsp;&nbsp;$10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Tax-Free Fund (per Fund/per year) | &nbsp;&nbsp;$8000 |
| **3. Form N-CR** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• File Form N-CR (per Fund/per filing) | &nbsp;&nbsp;$1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Onboarding Fee (per Fund) | &nbsp;&nbsp;$200 |
| **4. Shadow NAV** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Next Day Shadow NAV (by 10 a.m.) (per Fund/per year, plus feeder/class fee) | &nbsp;&nbsp;$15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Same Day Shadow NAV (by 8 p.m.) (per Fund/per year, plus feeder/class fee) | &nbsp;&nbsp; $15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Daily Pricing Vendor Quote (per vendor quote) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;• Feeder Fund Shadow NAV (per feeder/per year) | &nbsp;&nbsp;$2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Class Shadow NAV (per class/per year) | &nbsp;&nbsp;$500 |

---

**<u>APPENDIX 4</u>**

**Other Fund Administration Services**

(as applicable)

---

| | |
|:---|:---|
| **1. State Street ProNavigator<sup>SM</sup>** <sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Prospectus / Summary Prospectus \* | &nbsp;&nbsp;Per Page |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o The first 2,000 pages | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o All pages over 2,000 pages | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Statement of Additional Information \* | &nbsp;&nbsp;$75 |
| &nbsp;&nbsp;&nbsp;&nbsp;*\*All Funds that are open-end registered investment companies, as of an agreed upon date each year; costs incurred after the transfer of the files to a Fund's financial printer are the responsibility of the Fund.* | &nbsp;&nbsp;&nbsp;&nbsp;*\*All Funds that are open-end registered investment companies, as of an agreed upon date each year; costs incurred after the transfer of the files to a Fund's financial printer are the responsibility of the Fund.* |
| **2. Financial Statement Composition Services**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Composition only | &nbsp;&nbsp;Per Page |
| &nbsp;&nbsp;&nbsp;&nbsp;*Does not include printing costs, mailing costs or filing fees* | &nbsp;&nbsp;TBD |
| **3. CFTC Compliance Testing and Reporting**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• **Initial Margin and Net Notional Compliance Testing** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Daily (per Fund/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o First 1 – 10 Funds | &nbsp;&nbsp;$11000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Remaining Funds | &nbsp;&nbsp;$6000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Weekly (per Fund/per year) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Monthly (per Fund/per year) | &nbsp;&nbsp;$1500 |
| **4. CPO Annual Exclusion Filing** (Rule 4.5) (per Fund/per year)<sup>B</sup> | &nbsp;&nbsp;$250 |
| **5. Other Special Services** (upon reasonable request)<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• **SEC Filing Services** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Form N-14 Filings (per filing) | &nbsp;&nbsp;TBD |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Form 485(a) Filings |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 1 – 5 Funds (per Fund/per filing) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 6 – 10 Funds (per Fund/per filing) | &nbsp;&nbsp;$3500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 11 or more Funds (per Fund/per filing) | &nbsp;&nbsp;$2500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Exemptive Application Filings (per filing) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• **Special Shareholder Meeting Services** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preparation of Form DEF14 and Meeting Materials | &nbsp;&nbsp;$10,000 to $15,000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• **IRS Form 8937** (per Fund/per form) | &nbsp;&nbsp;$1000 |

---

<sup>1</sup> **Domestic Custody and Fund Accounting Basis Point Fee**. The Domestic Custody and Fund Accounting Basis Point Fee will be calculated by multiplying the net asset value (NAV) of the Funds on the last business day of the month by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30 and then allocating to each Fund its pro rata share based on the Fund's percentage of the Funds' NAV. If a Fund holds foreign assets, the market value of such foreign assets will be subtracted from the NAV of the Fund for purposes of this calculation. The market value of foreign assets used for this calculation will be the amount calculated for purposes of applying the Foreign Custody Asset Charges.

<sup>2</sup> **Transaction Processing Fees**. These are fees charged for processing transactions on behalf of the Funds as a part of the custody services under the Custody Agreement. These Transaction Processing Fees, unless otherwise waived, apply whether a Fund or its third party investment managers entered into such transactions with or through a third party dealer or broker or with or through State Street or one of its affiliates (either acting as a trade counterparty or providing agency execution services). The processing fees are in addition to, and are not to be construed as payments in lieu of, any profit or other compensation (as described in Explanatory Note 6 below) that may be earned by such third party dealer or broker or by State Street or any of its affiliates in connection with such transaction.

 

<sup>3</sup> **Definition of Transaction for Billing Purposes; Transaction Count Methodology**. Unless otherwise stated in this Fee Schedule, a transaction includes, without limitation, each buy, sell, reset, exchange, pay down, maturity, assignment, roll, call exercise, warrant exercise, rights exercise, convertible security event, amendment, corporate action or similar investment related action or activity which requires processing by State Street. A complete list of transaction types is available from your client service representative.

The cancel and rebook of any trade at the instruction of the Fund will be treated as two additional transactions (e.g., in addition to the initial trade order) for billing purposes. With respect to TBAs, the initial trade, the subsequent cancel and each pool allocation will be treated as a separate transaction for billing purposes. The initial trade and subsequent cancel will be billed at the TBA rate and each allocation will be billed at the rate applicable to the relevant transaction/asset type. State Street reserves the right to adjust the definition of a billable transaction and adjust the transaction count methodology as new instruments, transaction types or trading techniques emerge.

 

<sup>4</sup> **Wire Transfers**. Charges for Wire Transfers apply to all wires sent or received for the account of a Fund, including, but not limited to, wires to or from demand deposit accounts established by State Street to facilitate transfer agency activity of a Fund's third party transfer agent (including Boston Financial Data Services), if applicable.

 

<sup>5</sup> **Automated Clearing House (ACH) Transfers**. Charges for ACH Transfer charges apply to all such transfers sent or received for the account of a Fund, including, but not limited to, ACH transfers to or from demand deposit accounts established by State Street to facilitate transfer agency activity of a Fund's third party transfer agent (including Boston Financial Data Services), if applicable.

 

<sup>6</sup> **Principal and Agency Trading Services**. State Street Global Markets, a separate division of State Street, offers principal or "dealer" trading services as well as agency execution services in a variety of asset classes, including most of those described in this schedule. State Street, acting as principal through its treasury division, also enters into repurchase transactions with custody clients. A Fund or its third party investment managers may select State Street to effect principal or agency transactions. These transactions, however, are conducted under contractual or other arrangements that are distinct from State Street's services and obligations under the Agreements, irrespective of whether trade orders are transmitted through the custody or trustee operations of State Street in accordance with the Agreements. When State Street acts as a counterparty (e.g., foreign exchange,

OTC derivatives, repurchase transactions, etc.) to a Fund, such transactions are principal transactions and State Street enters into them as a principal and not in a fiduciary, agency or similar capacity (regardless of any other relationships between State Street and the Funds under the Agreements). In connection with such principal or agency execution services, State Street may earn a profit or otherwise receive compensation from the Funds in a variety of forms, including a commission, subscription or click fee, revenue share, spread, mark-up, mark-down, interest, fee or similar amount.

 

<sup>7</sup> **Futures**. Each Buy, Short Sell, Buy to Close, Sell to Close, Cancel Buy, Cancel Short Sell, Cancel Buy to Close and Cancel Sell to Close will be treated as a separate transaction for billing purposes.

 

<sup>8</sup> **Options**. Each Buy, Write, Buy to Close, Sell to Close, Assignment, Exercise, Cancel Buy, Cancel Write, Cancel Buy To Close, Cancel Sell To Close, Cancel Assignment and Cancel Exercise will be treated as a separate transaction for billing purposes.

 

<sup>9</sup> **OTC Derivatives**. OTC Derivatives include OTC Swaps (Bi-lateral or centrally cleared) and OTC Options. Each trade capture for contract creation, amendment, novation or termination will be treated as a separate transaction for billing purposes.

 

<sup>10</sup> **Contracts for Differences**. Each buy, sell, reset, close or amendment will be treated as a separate transaction for billing purposes.

 

<sup>11</sup> **Manual Trade Surcharge**. This surcharge is payable in addition to the listed transaction fees (including, but not limited to, the transaction fees listed in Appendix 1) and applies to all transactions for which trade instructions are submitted in a manner that requires manual processing by State Street or otherwise does not facilitate straight-through processing.

 

<sup>12</sup> **OTC Swap and Option Reconciliations to Counterparty**. Includes reconciliation of position and total market value.

 

<sup>13</sup> **DDA Maintenance Fee**. The DDA Maintenance Fee will not apply to demand deposit accounts established solely for transfer agency activity whether related to a Fund's third party transfer agent or where State Street is performing the transfer agency services.

 

<sup>14</sup> **Pricing Fees**. The stated rates are based on use of State Street's standard pricing vendors. The monthly fee will be based on the number of positions held by each Fund at month-end.

 

<sup>15</sup> **Committed Par**. The term Committed Par means the amount a lender has agreed to lend to a borrower, irrespective of the amount of outstanding loans under a loan commitment at any time.

 

<sup>16</sup> **Committed Par Fee**. The Committed Par Fee will be calculated by multiplying the sum of the Committed Par of each loan serviced for each Fund at month-end by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30.

<sup>17</sup> **Non-USD Committed Par**. Any Committed Par denominated in a foreign currency (if any) shall be converted to USD for billing purposes using the same currency exchange rates used by the Fund to calculate its NAV.

 

<sup>18</sup> **Fund Administration Basis Point Fee**. The Fund Administration Basis Point Fee will be calculated by multiplying the average monthly NAV of the Funds by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30, and then allocating to each Fund its pro rata share based on the Fund's percentage of the Funds' NAV. The average monthly NAV of each Fund will be calculated by taking the sum of the Fund's daily NAVs for each day of the calendar month (for each non-business day, the preceding business day's NAV will be used unless the Fund requests use of a different calculation methodology) and dividing that amount by the number of days in the month. State Street reserves the right to bill on the average monthly *<u>gross</u>* asset value rather than the average monthly NAV of a Fund if the use of leverage (including but not limited to short positions) by the Fund reduces its average monthly NAV and thereby reduces by any material amount the Fund Administration Basis Point Fee that otherwise would be payable in the absence of such leverage.

 

<sup>19</sup> **Cross Product Service Fees**. The Cross Product Fees and charges do not constitute out-of-pocket or pass-through expenses (i.e., they include a mark-up and/or overhead cost allocation). Changes to the Cross Product Service Fees and additional fees and charges of a similar nature or type may be implemented by State Street upon 90 day's written notice, subject to agreement between State Street and the Funds.

 

<sup>20</sup> **SWIFT**. Stated fee applies to each outbound SWIFT message generated in relation to a Fund by three State Street systems: Securities Management and Control ("SMAC") messages, Global Securities Management and Control ("GSMAC"), and Multicurrency Horizon ("MCH") messages. SMAC and GSMAC SWIFT messages facilitate particular transactions. MCH SWIFT messages communicate cash statements, holding reports and trade confirmations.

 

<sup>21</sup> **SOC 1**. Service Organization Controls Report prepared in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization (or any successor, replacement or equivalent report that may be introduced from time to time).

 

<sup>22</sup> **Dedicated Hardware / Transmission Lines**. Fee applies if the Funds require use of specific technological hardware that is not otherwise part of State Street's standard technology platform or use of a data transmission connection that is solely dedicated to the Funds. The Fee rate will be agreed after an analysis of the Funds' requirements is completed.

 

<sup>23</sup> **Data Extracts (Standard)**. Stated fee applies to the use of any of the 15 (as of March 25, 2015) CTI MDB Standard Outbound data extracts. For a current listing of CTI MDB Standard Outbound data extracts, please contact your client service representative.

 

<sup>24</sup> **Data Extracts (Non-standard)**. Stated fee applies to the use of any custom created CTI MDB Outbound data extracts.

 

<sup>25</sup> **Custom or Manual Reports (per report)**. Stated fee applies to the one time or recurring creation and distribution of ad-hoc or custom reporting by a State Street employee.

<sup>26</sup> **Customized Programming or Transmissions**. State Street will charge the stated hourly rate for (i) the creation and implementation of Standard or Non Standard Data Extracts as defined above; (ii) for the implementation of dedicated hardware or transmission lines as defined above; and/or (iii) for the implementation any Fund requested customized programming.

 

<sup>27</sup> **Maintenance of Customized Programming or Transmissions**. Stated fee applies to ongoing maintenance required to (i) support necessary infrastructure, information security protocols or data contained in Standard or Non Standard Data Extracts as defined above; (ii) ongoing support for dedicated hardware or transmission lines; and (iii) ongoing support for any Fund requested customized programming.

 

<sup>28</sup> **Subcustodian and Depository Out-of-Pocket Expenses**. Subcustodian and Depository Out-of-Pocket Expenses include, without limitation, expenses for account opening, maintenance and administration, courier/delivery, depository charges, funds transfer fees, issuance of nit, late trades, market entrance charges, name change, proxy, registration, rematerialization, remittance, re-registration, stamp duty or tax, stock exchange levies and tax reclaims, among others. A complete list of Subcustodian and Depository Out-of-Pocket Expenses is available from your client service representative.

 

<sup>29</sup> **Fair Value Vendor Charges**. At the request and direction of the Funds, State Street will source fair value pricing from the Funds' preferred vendor(s). All amounts invoiced to State Street by such vendors with respect to fair value pricing for the Funds will be charged to the Funds as a reimbursable out-of-pocket expense.

<sup>30</sup> **Pricing (Non-standard Vendors)**. At the request and direction of the Funds, State Street will source securities and asset pricing from non-standard vendors. All amounts invoiced to State Street by such vendors with respect to non-standard vendor pricing for the Funds will be charged to the Funds as a reimbursable out-of-pocket expense. A complete listing of standard pricing vendors is available from your client service representative.

<sup>31</sup> **Reasonable External Legal Expenses**. Reasonable external legal expenses incurred by State Street will be charged to the Funds as a reimbursable out-of-pocket expense in circumstances permitted by the Agreements or as otherwise agreed by State Street and the Funds.

 

<sup>32</sup> **Cost of responding to third party subpoenas and/or regulatory inquires**. The fee of $5,000 is not an out-of-pocket or pass-through expense and is intended to defray internal costs that may be associated with responding to third party subpoenas and/or regulatory inquires. These costs typically include, without limitation, the cost of management and staff time, the use of internal legal, compliance, risk management, business controls, IT and other resources, and data and document retention, storage and production costs, among others. State Street shall have no obligation to account to the Funds for the type or amount of internal costs actually incurred and such costs may be less than (or exceed) the amount of the fee.

<sup>33</sup> **Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges**. The Foreign Custody and Fund Accounting Asset Charges will be calculated by multiplying the USD market value of the cash, securities and other assets held in custody on behalf of each Fund at month-end by the applicable basis point rate(s) (based on custody location), dividing the result (or the sum of such results) by 360 and multiplying that amount by 30. With respect to assets held outside of the U.S., custody location is determined for billing purposes by reference to the jurisdiction in which State Street, its subcustodian or a Securities System, as the case may be, holds the relevant asset or, if the asset is immobilized or dematerialized and record ownership is maintained only in book-entry form, custody location means the jurisdiction of the Securities System through which State Street maintains the record of the Fund's entitlement to such asset, provided that the custody location for on-book currencies will be the jurisdiction that issues the relevant currency. For purposes of this fee calculation, State Street will utilize the same local currency market values and the same currency exchange rates to convert those values to USD that are used to calculate the NAV of each Fund, provided that the absolute value of any negative cash, security or other asset position will be used. For custody only Funds, State Street will utilize its standard pricing vendors to obtain a market value for each position. If a market value for a position is not available from such vendors, State Street will utilize the same market value for such position that is used by the Fund to calculate its NAV or otherwise value its portfolio, which value will be supplied by the Fund promptly upon request. If following such a request a Fund is unable to provide a market value within five (5) days of month-end, State Street will utilize the market value of the position from the prior month-end and is authorized to continue to use such value until an update is supplied by the Fund or otherwise becomes available from State Street's standard pricing vendors. For illiquid positions, each Fund will be responsible for supplying State Street with a market value as of the date of purchase (or initial custody by State Street) and at least annually thereafter. The Foreign Custody Transaction Charges are fees imposed for processing transactions on behalf of each Fund in the relevant foreign market as part of the custody services. The Manual Trade Surcharge specified in Section I of the Fee Schedule will also be assessed on a foreign custody transaction, as applicable. The Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges applicable with respect to custody services in any country not listed in Appendix 1 above will be negotiated and agreed by State Street and the Funds prior to investment in such country.

**Custody Only.** Reference to "custody only" refers to any custody relationship with a Fund where State Street does not also provide fund accounting or portfolio accounting services to such Fund.

## Ex-99.(H)(2)(F)

**Exhibit 99.(h)(2)(F)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**FIFTH AMENDMENT**

**TO**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Fifth Amendment to the Sub-Administrative Services Fee Agreement is made as of January 13, 2020 (the "Amendment") by and between the American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, the American Beacon Institutional Funds Trust, a Delaware statutory trust, the American Beacon Sound Point Enhanced Income Fund and the American Beacon Apollo Total Return Fund, each a Delaware statutory trust, (collectively, the "Trusts"), and American Beacon Advisors, Inc., a Delaware corporation (the "Manager"). Capitalized terms used in this Amendment without definition shall have the respective meanings ascribed to such terms in the Agreement (as defined below).

WHEREAS, the Manager and the Trusts entered into a Sub-Administrative Services Fee Agreement effective as of April 30, 2017 (the "Agreement");

WHEREAS, the parties wish to amend the Agreement as set forth below:

Manager and the Trusts wish to add the American Beacon TwentyFour Short Term Bond Fund as party to the Agreement and update Schedules A and B to the Agreement as set forth below;

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Agreement, pursuant to the terms thereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Agreement and its Schedule A are amended to reflect the addition of the following Funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. American Beacon SSI Alternative Income Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. American Beacon TwentyFour Short Term Bond Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Agreement and its Schedule A are amended to reflect the removal of the following Funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. American Beacon Bridgeway Large Cap Growth II Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. American Beacon SGA Global Growth Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Schedule A and Schedule B are hereby deleted in their entirety and replaced with the updated Schedule
A and Schedule B attached.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Except as specifically amended hereby, all other terms and conditions of the Agreement shall remain in
full force and effect. This Amendment is incorporated in its entirety into the Agreement, and this Amendment and said Agreement shall
be read and interpreted together as the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective seals to be hereunto affixed, as of the day and year first above written.

AMERICAN BEACON FUNDS

AMERICAN BEACON SELECT FUNDS

AMERICAN BEACON INSTITUTIONAL FUNDS TRUST

AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND

AMERICAN BEACON APOLLO TOTAL RETURN FUND

---

| | |
|:---|:---|
| By: | /s/ Gene L. Needles, Jr. |
|  | Gene L. Needles, Jr. |
|  | President |

---

AMERICAN BEACON ADVISORS, INC.

---

| | |
|:---|:---|
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President and Chief Operating Officer |

---

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE A**

**American Beacon Funds**

American Beacon AHL Managed Futures Strategy Fund

American Beacon AHL Target Risk Fund

American Beacon Acadian Emerging Markets Managed Volatility Fund

American Beacon Alpha Quant Core Fund

American Beacon Alpha Quant Dividend Fund

American Beacon Alpha Quant Quality Fund

American Beacon Alpha Quant Value Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Continuous Capital Emerging Markets Fund

American Beacon Crescent Short Duration High Income Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon GLG Total Return Fund

American Beacon Frontier Markets Income Fund

American Beacon International Equity Fund

American Beacon Large Cap Value Fund

American Beacon Mid-Cap Value Fund

American Beacon Shapiro Equity Opportunities Fund

American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon Sound Point Floating Rate Income Fund

American Beacon SSI Alternative Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon Tocqueville International Value Fund

American Beacon TwentyFour Short Term Bond Fund

American Beacon TwentyFour Strategic Income Fund

American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUND**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

American Beacon Sound Point Enhanced Income Fund

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

American Beacon Apollo Total Return Fund

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE B**

**COMBINED FEE SCHEDULE**

**American Beacon Funds ("AB Funds")**

**American Beacon Select Funds ("AB Select Funds")**

**American Beacon Institutional Funds Trust ("AB Institutional Funds")**

**American Beacon Sound Point Enhanced Income Fund ("Sound Point Fund")**

**American Beacon Apollo Total Return Fund ("Apollo")**

**(each a "Fund" and collectively, the "Funds")**

**American Beacon Advisors, Inc. (the "Manager")**

**Amended and Restated Confidential Fee Schedule**

**Dated May 8, 2018**

**CUSTODY, FUND ACCOUNTING, AND FUND ADMINISTRATION Services**

This Amended and Restated Confidential Fee Schedule amends and restates the fee schedule entered into by the parties hereto dated May 8, 2018. This Amended and Restated Fee Schedule is effective as of April 30, 2017, except as otherwise noted herein (the "**Effective Date**"), and except that it is effective with respect to the Sound Point Fund as of May 8, 2018 and the Apollo Fund as of August 26, 2018.

Reference is hereby made to (a) the Custodian Agreement dated as of December 1, 1997 by and between State Street Bank and Trust Company ("**State Street**") and AB Funds (the "**AB Funds Custody Agreement**"); (b) the Custodian Agreement dated as of December 31, 1999 by and between State Street and AB Select Funds (the "**AB Select Funds Custody Agreement**"), (c) the Custodian Agreement dated as of March 24, 2017 by and between State Street and the AB Institutional Funds (the "**AB Institutional Funds Custody Agreement**"), (d) the Custodian Agreement dated as of May 8, 2018 by and between State Street and the Funds specified therein, (the "**AB Master Custody Agreement**," and collectively, the "**Custody Agreements**"), and (e) the Sub-Administration Agreement dated as of September 6, 2017 by and between State Street and the Manager (the "**Sub-Administration Agreement**", and collectively with the Custody Agreements, the "**Agreements**," as the same may be amended, supplemented, restated or otherwise modified from time to time). The parties have entered into this fee schedule ("**Fee Schedule**") effective as of the Effective Date, in order to memorialize their agreement on the compensation to be paid by the Funds and the Manager to State Street for the performance of the services specified in the Agreements (the "**Services**"). This Fee Schedule shall be subject to the terms and conditions of the Agreements as if it were a part thereof. Unless otherwise agreed by the parties, this Fee Schedule shall apply to the provision of the Services to each Fund which is a party or is otherwise subject to the Agreements from time to time. In the event of any conflict between the terms of an Agreement and the terms of this Fee Schedule relating to fees, charges, expenses or other financial terms, the terms of this Fee Schedule shall control. Unless otherwise defined, capitalized terms used herein shall have the meaning given to them in the relevant Agreement, as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** Custody and Fund Accounting

In consideration for the provision of custody and fund accounting services by State Street pursuant to the Custody Agreement and the discharge of its other obligations thereunder, each Fund shall be obligated to pay State Street the fees and charges set forth in this Section I, together with any applicable fees and charges payable under Sections IV,

V and VI below. On a monthly basis, each Fund shall pay a domestic custody and fund accounting fee equal to the Domestic Custody and Fund Accounting Basis Point Fee, plus the applicable Foreign Custody Fee, Transaction Processing and Activity Based Fees and DDA Charges, plus the applicable Feeder Fees, Pricing Fees, Money Market Fund Services Fees and Other Fund Accounting Charges, in each case as specified below.<sup>1</sup>

---

| | |
|:---|:---|
| **1. Domestic Custody and Fund Accounting Basis Point Fee** (Complex Wide/per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net Asset Value of Complex Wide Assets</u> | &nbsp;&nbsp;<u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0 - $17 Billion | &nbsp;&nbsp;1.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$17- $40 Billion | &nbsp;&nbsp;0.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $40 Billion | &nbsp;&nbsp;0.50 |
| **2. Foreign Custody and Fund Accounting Fee** (per Fund/per month and per transaction)<sup>A</sup> | &nbsp;&nbsp;See <u>Appendix 1</u> |

---

---

| | |
|:---|:---|
| **3. Transaction Processing and Activity Based Fees**<sup>2 A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Domestic Transaction Processing Fees</u><sup>3</sup> (per transaction) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State Street Repurchase Agreements (Repo) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fund of Fund Trades | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• DTC or Fed Book Entry – Automated/Electronic Trade Instruction | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mortgage Backed Securities Principal and Income Paydowns | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Physical Settlement Processing | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Collateral/Memo Pledging (Fed Book Entry & DTC) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wire Transfers (Fed Wires & Interbank Transfers)<sup>4</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Automated Clearing House (ACH) Transfers<sup>5</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Automated/Electronic Trade Instruction | &nbsp;&nbsp;$25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Third Party Foreign Exchange - Manual Trade Instruction (Fax, etc.) | &nbsp;&nbsp;$25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Processing of Foreign Exchange executed through State Street Global Markets<sup>6</sup> | &nbsp;&nbsp; No Charge –<br> See Explanatory Note 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Futures<sup>7</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Managed Futures Funds, as identified by the Funds and State Street from time to time : effective April 1, 2018* | &nbsp;&nbsp;$5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed Options<sup>8</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OTC Derivatives<sup>9</sup> | &nbsp;&nbsp;$25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contracts for Differences<sup>10</sup> o *This fee is applicable with respect to American Beacon Numeric Integrated Alpha Fund (DVK6) effective November 1, 2016 and for all other Funds is applicable as of the effective date.*  | &nbsp;&nbsp;$3.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• TBAs | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All Other Trades | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Manual Trade Surcharge</u> (per transaction)<sup>11</sup> | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Custody Fees</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OTC Swap and Option Reconciliations to Counterparty (monthly/per position)<sup>12</sup> | &nbsp;&nbsp;$45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Checks (per check, per issuance/certification/stop payment) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rule 17f-5 Materials (Digital, CD or Printed) (per Fund/per year for Funds with foreign holdings) | &nbsp;&nbsp;Waived |

---

---

| | |
|:---|:---|
| **4. DDA Charges**<sup>A</sup> |  |
| <u>USD DDA Maintenance Fee</u> (per DDA/per month)<sup>13</sup> | &nbsp;&nbsp;$100 |
| <u>Other DDA Charges and Expenses and DDA Limits</u> | &nbsp;&nbsp;See <u>Appendix 2</u> |

---

 

---

| | |
|:---|:---|
| **5. Feeder Fees** (per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• First Two Feeders (each) | &nbsp;&nbsp;$12000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Additional Feeders (each) | &nbsp;&nbsp;$9600 |

---

---

| | |
|:---|:---|
| **6. Pricing Fees**<sup>14</sup> ,<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Pricing</u> (per position/per month) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Municipal, Government, Corporate, Convertible Bonds, Foreign Bonds, CMOs, CDs | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exchange Traded Options, Futures and Private Placements | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Equities, Preferred Stocks | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loans (Thomson Reuters or Markit Loans) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Fair Valuation/State Street Pricing Service</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funds with 5 or more non-US holdings (per Fund/per year) | &nbsp;&nbsp;$4000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Broker Quotes / Directed Pricing Override (per quote or override) | &nbsp;&nbsp;Waived |

---

---

| | |
|:---|:---|
| **7. Money Market Fund Services Fees** (as applicable)<sup>(Refer to Appendix 3 for Applicable Party)</sup> | &nbsp;&nbsp;See <u>Appendix 3</u> |

---

---

| | |
|:---|:---|
| **8. Other Fund Accounting Charges**<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Class Fund Charge - each additional class (in excess of one) (per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Manager/Sleeves (per sleeve/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Liquid Alternative Funds, as identified by the Funds and State Street from time to time* | &nbsp;&nbsp;$7500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *All other Funds* | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ASC 820 (formerly FAS 157) Reporting (per Fund/per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ASC 815 (formerly FAS 161) Reporting (per Fund/per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• NAV Distributor (per Fund/per year) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State Street Compliance38 (per Fund/per year) | &nbsp;&nbsp;$800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fund Merger, Consolidation, or other Reorganization (one time charge/per Fund/per event) | &nbsp;&nbsp;$10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Yield Calculations, including SEC Yield (per calculation/per Fund/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Initial | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each additional | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transmission of Data to Morningstar |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Up to 50 funds (per Fund/per year, plus sleeve fee) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funds 51-100 (per Fund/per year, plus sleeve fee) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For each Fund thereafter (per Fund/per year, plus sleeve fee) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multi-Manager/Sleeves (per sleeve/per year) | &nbsp;&nbsp;N/A |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II.** **Loan Services** 

In consideration for the provision of loan services by State Street pursuant to the Custody Agreement and the discharge of its other obligations thereunder, each Fund shall be obligated to pay State Street the fees and charges set forth in this Section II, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, each Fund shall pay a loan services fee equal to the greater of the Committed Par<sup>15</sup> Fee and the Committed Par Minimum Fee, in each case as specified below.<sup>16</sup>

---

| | |
|:---|:---|
| **1. Committed Par Fee** (per Fund/per year)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Committed Par of Loans</u><sup>17</sup> | &nbsp;&nbsp;<u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0 - $500 Million | &nbsp;&nbsp;3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $500 Million - $1 Billion | &nbsp;&nbsp;2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over $1 Billion | &nbsp;&nbsp;2.0 |
| **Committed Par Minimum Fee** (per Fund/per month) | &nbsp;&nbsp;$3750 |

---

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III.** **Fund Administration** 

In consideration for the provision of fund administration services by State Street pursuant to the Sub-Administration Agreement and the discharge of its other obligations thereunder, the Manager shall be obligated to pay State Street the fees and charges set forth in this Section III, together with any applicable fees and charges payable under Sections IV, V and VI below. On a monthly basis, the Manager shall pay a fund administration fee equal to the greater of the Fund Administration Basis Point Fee and the Fund Administration Minimum Fee, plus any applicable Compliance Monitoring Fee, Fund Reorganization Fees, Other Money Market Fund Services Fees and Other Fund Administration Services Fees, in each case as specified below.<sup>18</sup> The Fund and the Manager agree that, to the extent applicable, a Fund may reimburse the Manager for certain services hereunder as otherwise agreed by the Manager and the Funds. Each Fund is responsible for its own portion of such charges, if any.

 

---

| | |
|:---|:---|
| **1. Fund Administration Basis Point Fee** (Complex Wide/per year)<sup>C</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net Asset Value of Complex Wide Assets</u> | &nbsp;&nbsp;<u>Annual Basis Point Rate</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First $10 billion | &nbsp;&nbsp;0.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Next $10 billion | &nbsp;&nbsp;0.55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thereafter | &nbsp;&nbsp;0.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Fee Discount (Complex Wide/per year)</u>** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year 1 Only | &nbsp;&nbsp;$200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year 2 Only | &nbsp;&nbsp;$100000 |
| **2. Fund Administration Minimum Fee** (per Fund/per month)<sup>C</sup> | &nbsp;&nbsp;$4625 |

---

---

| | |
|:---|:---|
| **3. Compliance Monitoring Fee** (per Fund/per year)<sup>D</sup> | &nbsp;&nbsp;$5500 |

---

---

| | |
|:---|:---|
| **4. Fund Reorganization Fee –** Fund Merger, Consolidation, or other Reorganization (one time charge/per Fund/per event)<sup>A</sup> | &nbsp;&nbsp;$10000 |

---

---

| | |
|:---|:---|
| **5. Other Money Market Fund Services Fees** (as applicable)<sup>(Refer to Appendix 3 for Applicable Party)</sup> | &nbsp;&nbsp;See <u>Appendix 3</u> |

---

---

| | |
|:---|:---|
| **6. Other Fund Administration Services Fees** (as applicable)<sup>(Refer to Appendix 4 for Applicable Party)</sup> | &nbsp;&nbsp;See <u>Appendix 4</u> |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.** **Cross Product Service Fees** <sup>A</sup>

In addition to any other fees, charges or expenses that may be payable under this Fee Schedule, each Fund or the Manager shall be obligated to pay State Street the fees and charges set forth in this Section IV, as applicable, based on usage of the listed product or service in connection with the Services.<sup>19</sup>

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;• SWIFT Messages (per message)<sup>20</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• CCO Attestation Report (per Semi-Annual Report/per Fund) (Fund) | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;&nbsp;• SAS99 (audit firm data feeds) (per feed/ per annum) (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Document and Data Archiving/Storage (per Fund, per month) (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• SOC 1 Charges (per Fund, per month)<sup>21</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Dedicated Hardware / Transmission Lines (per Fund/per month)<sup>22</sup> (Fund) | &nbsp;&nbsp; Waived |
| &nbsp;&nbsp;&nbsp;• Data Extracts (Standard) (per extract/per annum)<sup>23</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Data Extracts (Non-standard) (per extract/per annum)<sup>24</sup> (Fund) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Custom or Manual Reports (per report/per annum)<sup>25</sup> (Fund or Manager as applicable) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;• Development of standard or customized programming or transmissions<sup>26</sup> (Fund or Manager, as applicable) | &nbsp;&nbsp;$150 per hour |
| &nbsp;&nbsp;&nbsp;• Maintenance of customized programming or transmissions (per year)<sup>27</sup> (Fund or Manager, as applicable) | &nbsp;&nbsp;$4000 |
| &nbsp;&nbsp;&nbsp;• Vendor oversight and/or due diligence requests (including questionnaires) (per request/ questionnaire /visit) (Fund) | &nbsp;&nbsp;Waived |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V.** **Out of Pocket Expenses** <sup>A</sup>

Out-of-pocket expenses incurred by State Street (and by its subcustodians and depositories) on behalf of each Fund in connection with the performance of the Services will be passed through to the Funds or the Manager each month (as designated below), including, but not limited to, the following expenses. The intent of these designations to the Funds or the Manager is to reflect that certain expenses are associated with custody/fund accounting and certain expenses are associated with fund administration services; as noted, certain expenses may be associated with both custody/fund accounting and fund administration services.

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;• Subcustodian and Depository Out-of-Pocket Expenses<sup>28</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• Miscellaneous expenses incurred in connection with foreign custody (e.g., stamp duties, registration costs, script fees, special transportation costs, etc.) (Fund) |
| &nbsp;&nbsp;&nbsp;• Fair Value Vendor Charges<sup>29</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• Pricing (Non-standard Vendors)<sup>30</sup> (Fund) |
| &nbsp;&nbsp;&nbsp;• ADR and GDR charges (Fund) |
| &nbsp;&nbsp;&nbsp;• Stock Exchange Fees (Fund) |
| &nbsp;&nbsp;&nbsp;• DST (agency charges/output fees/underwriting charges) (Fund) |
| &nbsp;&nbsp;&nbsp;• NSCC Settlement Charges (Fund) |
| &nbsp;&nbsp;&nbsp;• Tax Certifications and Form Filing (Fund) |
| &nbsp;&nbsp;&nbsp;• Courier or Overnight Delivery (plus $1 handling fee) (Fund or Manager, as applicable) |
| &nbsp;&nbsp;&nbsp;• Notary and Governmental Charges or Filing Fees (Fund) |
| &nbsp;&nbsp;&nbsp;• Reasonable External Legal Expenses<sup>31</sup> (Fund or Manager, as applicable) |
| &nbsp;&nbsp;&nbsp;• Travel, including transportation, meals and lodging, for Fund Board Meeting attendance and other business related travel at a Fund's request (Fund) |
| &nbsp;&nbsp;&nbsp;• Cost of responding to third party subpoenas and/or regulatory inquires related to the Funds or the Funds' investment adviser(s) or manager(s) (plus a fee of $5,000 per subpoena<sup>32</sup>) (Fund or Manager, as applicable) |

---

Out-of-pocket expenses incurred by State Street (and by its subcustodians and depositories) will be billed to the Funds or the Manager based upon actual usage of a service or an allocated or derived charge for the use of the service for the benefit of the Funds or the Manager, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VI.** **Additional Services** <sup>A</sup>

In the event one or more of the Funds or the Manager request that State Street (i) provide new or additional services not otherwise expressly required by the Agreements, (ii) modify or otherwise change the Services (including, but not limited to, the elements and/or frequency of any task or function performed as part of the Services), (iii) change the means or manner in which the Services are provided, (iv) change the location from or to which the Services are performed or (v) support or handle any non-standard, one-off or special activities, State Street shall be entitled to additional compensation (to be mutually agreed with the Fund(s)) as a condition to its agreement to implement any such request. For avoidance of doubt, the terms of this Section VII apply, without limitation, to material changes in the legal or regulatory requirements applicable to one or more of the Funds or material changes in the legal, tax or regulatory elections or status of one or more of the Funds which result in changes to the service requirements of such Fund(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VII.** **Assumptions** 

The Funds and the Manager acknowledge that the overall fee structure set forth in this Fee Schedule has been agreed by the parties based on information provided by the Funds and the Manager and on the basis of certain mutually agreed assumptions which have been set forth in a separate written Projected Business Profile. In the event that the assumptions set forth in the Projected Business Profile prove to be inaccurate, including, but not limited to, if the gross revenue derived from the overall commercial relationship between State Street and the Funds and the Manger is materially lower than what the Parties agreed would be a reasonable assumption at the time the Agreements were executed, the Parties agree to negotiate an adjustment to such fee structure in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VIII.** **Confidentiality** 

This Fee Schedule constitutes confidential information of the Parties under the terms of the Agreements and shall not be disclosed to any legal or natural person except as expressly permitted thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IX.** **Payment of Fees** 

The service fees, charges and reimbursable expenses payable under this Fee Schedule by the Funds and the Manager will be invoiced to the Funds and the Manager, as applicable, on a monthly basis and shall be due upon receipt. Beginning thirty days from the date of the invoice, State Street will be entitled to charge interest (at the then applicable overdraft interest rate) on any undisputed amounts that remain unpaid.

Unless otherwise expressly stated, yearly fees will be invoiced in twelve monthly installments as part of the standard invoicing process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X.** **Term** 

This Fee Schedule shall become effective as of the Effective Date, shall remain in effect for an initial period of five (5) years, and shall automatically renew for successive one-year periods from year to year thereafter, unless otherwise modified or terminated in accordance with the terms of the Agreements.

<sup>A</sup> Each Fund is responsible for its portion of the charges, as applicable

<sup>B</sup> The Manager is responsible for the charge

<sup>C</sup> The Manager is responsible for the charge and will charge back the following amounts to the applicable Fund:

---

| | |
|:---|:---|
| Wash Sales | $3,000 per year per single manager Fund |
|  | $5,000 per year per multi-manager Fund |
| Qualified Dividend Income | $500 per year, per Fund |

---

<sup>D</sup> The Compliance Monitoring Fee will be charged as follows:

---

| | |
|:---|:---|
| Manager | $4,000 per year, per Fund |
| Applicable Fund | $1,500 per year, per Fund |

---

**<u>APPENDIX 1</u>**<sup>A</sup>

**Foreign Custody and Fund Accounting Fees**

On a monthly basis, each Fund shall pay a Foreign Custody Fee equal to the Foreign Custody and Fund Accounting Asset Charges, plus the Foreign Custody Transaction Charges\*, in each case as specified below.

*\***<u>Note</u>**: Foreign custody transaction charges apply only to Emerging Markets Funds, as identified by the Funds and State Street from time to time.*

**Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges**<sup>33</sup>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Market** | &nbsp;&nbsp; **Foreign Custody and Fund Accounting**<br> **Asset Charge**<br> **(Basis Points)** | &nbsp;&nbsp; **Foreign**<br> **Custody Transaction Charges** | &nbsp;&nbsp;**Market** | &nbsp;&nbsp; **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | &nbsp;&nbsp;**Foreign Custody Transaction Charges** |
| &nbsp;&nbsp;Albania | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;Ghana | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Argentina | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Greece | &nbsp;&nbsp;20.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Australia | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Hong Kong | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$15 |
| &nbsp;&nbsp;Austria | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Hungary | &nbsp;&nbsp;25.0 | &nbsp;&nbsp;$60 |
| &nbsp;&nbsp;Bahrain | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;Iceland | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$50 |
| &nbsp;&nbsp;Bangladesh | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;India | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$35 |
| &nbsp;&nbsp;Belgium | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$30 | &nbsp;&nbsp;Indonesia | &nbsp;&nbsp;8.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp; Bermuda<br> Bolivia | &nbsp;&nbsp; 15.0<br> 45.0 | &nbsp;&nbsp; $90<br> $125 | &nbsp;&nbsp; Ireland<br> Luxembourg | &nbsp;&nbsp; 5.0<br> 35.0 | &nbsp;&nbsp; $40<br> $100 |
| &nbsp;&nbsp;Bosnia & Herzegovina | &nbsp;&nbsp;65.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Israel | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$40 |
| &nbsp;&nbsp;Botswana | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Italy | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$25 |
| &nbsp;&nbsp;Brazil | &nbsp;&nbsp;18.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Ivory Coast\* | &nbsp;&nbsp;75.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Bulgaria | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Jamaica | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Canada | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;$20 | &nbsp;&nbsp;Japan-Mizuho | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;$20 |
| &nbsp;&nbsp;Cayman Island | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$75 | &nbsp;&nbsp;Jordan | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Cedel\Clearstream | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;$10 | &nbsp;&nbsp;Kazakhstan | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$135 |
| &nbsp;&nbsp;Chile | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Kenya | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;China | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Kuwait | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Colombia | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Latvia | &nbsp;&nbsp;65.0 | &nbsp;&nbsp;$50 |
| &nbsp;&nbsp;Costa Rica | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$80 | &nbsp;&nbsp;Lebanon | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Croatia | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Lithuania | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$50 |
| &nbsp;&nbsp;Cyprus | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Malawi | &nbsp;&nbsp;60.0 | &nbsp;&nbsp;$200 |
| &nbsp;&nbsp;Czech Republic | &nbsp;&nbsp;20.0 | &nbsp;&nbsp;$40 | &nbsp;&nbsp;Malaysia | &nbsp;&nbsp;8.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp;Denmark | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Malta | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Ecuador | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Mauritius | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Egypt | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$40 | &nbsp;&nbsp;Mexico | &nbsp;&nbsp;2.5 | &nbsp;&nbsp;$20 |
| &nbsp;&nbsp;Estonia | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$50 | &nbsp;&nbsp;Morocco | &nbsp;&nbsp;25.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Euroclear | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;$5 | &nbsp;&nbsp;Namibia | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Finland | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$45 | &nbsp;&nbsp;Netherlands | &nbsp;&nbsp;4.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp;France | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;New Zealand | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$25 |
| &nbsp;&nbsp;Georgia | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$200 | &nbsp;&nbsp;Nigeria | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Germany | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Norway | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$40 |

---

\* Ivory Coast includes Benin, Burkina Faso, Mali, Niger, Senegal, Guinea-Bissau and Togo.

**<u>APPENDIX 1</u>**<sup>A</sup>

**Foreign Custody and Fund Accounting Fees**

**- Continued -**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Market** | &nbsp;&nbsp; **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | &nbsp;&nbsp; **Foreign**<br> **Custody Transaction Charges** | &nbsp;&nbsp;**Market** | &nbsp;&nbsp; **Foreign Custody and Fund Accounting Asset Charge**<br> **(Basis Points)** | &nbsp;&nbsp;**Foreign Custody Transaction Charges** |
| &nbsp;&nbsp;Oman | &nbsp;&nbsp;65.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;Sri Lanka | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Pakistan | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Srpska | &nbsp;&nbsp;65.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Palestine | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;Swaziland | &nbsp;&nbsp;75.0 | &nbsp;&nbsp;$200 |
| &nbsp;&nbsp;Panama | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Sweden | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$40 |
| &nbsp;&nbsp;Peru | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Switzerland | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;$25 |
| &nbsp;&nbsp;Philippines | &nbsp;&nbsp;8.0 | &nbsp;&nbsp;$40 | &nbsp;&nbsp;Taiwan | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp;Poland | &nbsp;&nbsp;15.0 | &nbsp;&nbsp;$40 | &nbsp;&nbsp;Tanzania | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;Portugal | &nbsp;&nbsp;10.0 | &nbsp;&nbsp;$50 | &nbsp;&nbsp;Thailand | &nbsp;&nbsp;2.5 | &nbsp;&nbsp;$20 |
| &nbsp;&nbsp;Puerto Rico | &nbsp;&nbsp;10.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Trinidad & Tobago | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Qatar | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$75 | &nbsp;&nbsp;Tunisia | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Romania | &nbsp;&nbsp;75.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Turkey | &nbsp;&nbsp;12.0 | &nbsp;&nbsp;$30 |
| &nbsp;&nbsp;Russia | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$300 | &nbsp;&nbsp;Uganda | &nbsp;&nbsp;50.0 | &nbsp;&nbsp;$110 |
| &nbsp;&nbsp;Saudi Arabia | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$125 | &nbsp;&nbsp;Ukraine | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$110 |
| &nbsp;&nbsp;Serbia | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$150 | &nbsp;&nbsp;United Arab Emirates | &nbsp;&nbsp;30.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Singapore | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$20 | &nbsp;&nbsp;United Kingdom | &nbsp;&nbsp;0.75 | &nbsp;&nbsp;$5 |
| &nbsp;&nbsp;Slovak Republic | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$$75 | &nbsp;&nbsp;Uruguay | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;Slovenia | &nbsp;&nbsp;75.0 | &nbsp;&nbsp;$100 | &nbsp;&nbsp;Venezuela | &nbsp;&nbsp;45.0 | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;South Africa | &nbsp;&nbsp;2.5 | &nbsp;&nbsp;$10 | &nbsp;&nbsp;Vietnam | &nbsp;&nbsp;40.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;South Korea | &nbsp;&nbsp;10.0 | &nbsp;&nbsp;$25 | &nbsp;&nbsp;Zambia | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |
| &nbsp;&nbsp;Spain | &nbsp;&nbsp;5.0 | &nbsp;&nbsp;$30 | &nbsp;&nbsp;Zimbabwe | &nbsp;&nbsp;35.0 | &nbsp;&nbsp;$100 |

---

**<u>APPENDIX 2</u>**<sup>A</sup>

**Other DDA Charges and Expenses and DDA Limits**

<u>Interest Rates and Charges</u>

Unless State Street notifies the Funds otherwise, demand deposit accounts established and maintained on behalf of the Funds are non-interest bearing accounts. State Street may elect to pay interest on deposit balances at such times and at such rates as it may specify from time to time. Interest rates, if applicable, will vary by currency and market conditions and State Street may cease paying interest, change interest rates, or apply (and adjust) negative interest rates or equivalent charges or fees on designated currencies, from time to time at its sole discretion.

Details on applicable interest rates, equivalent charges or fees are available upon request.

<u>Overdrafts</u>

Except in accordance with the terms of a committed credit facility established with State Street, Funds are not entitled to overdraw their cash deposit accounts. Cash advances or other extensions of credit are made at the discretion of State Street. In the event of an overdraft which exceeds a designated threshold (currently set at $50,000 for USD overdrafts), State Street will impose an interest charge on the amount of the overdraft during the period an account is overdrawn. The interest rates applicable to overdrafts and the applicable overdraft thresholds (if any) are set on a periodic basis by State Street for each currency at its sole discretion, taking into account market conditions and other relevant commercial considerations. Unless otherwise agreed in writing, overdrafts are repayable in full either (i) on demand or (ii) within five business days, whichever is earlier. Interest charges will be accrued on a daily basis and debited from the applicable deposit account monthly. Details on applicable interest rates and overdraft thresholds are available upon request from your client service representative.

<u>Deposit Limits</u>

Subject to applicable law and regulation, State Street may refuse to accept, limit the amount of or return all or a portion of certain types of cash deposits and/or balances, including non-operational deposits.

**<u>APPENDIX 3</u>**

**Money Market Fund Services**

(as applicable)

---

| | |
|:---|:---|
| **1. Money Market Fund Reporting**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Monthly Form N-MFP (per Fund/per year) | &nbsp;&nbsp;$11500 |
| **2. Daily And Weekly Liquid Asset Compliance Testing and Daily Website Disclosures** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Taxable Fund (per Fund/per year) | &nbsp;&nbsp;$10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Tax-Free Fund (per Fund/per year) | &nbsp;&nbsp;$8000 |
| **3. Form N-CR** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• File Form N-CR (per Fund/per filing) | &nbsp;&nbsp;$1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Onboarding Fee (per Fund) | &nbsp;&nbsp;$200 |
| **4. Shadow NAV** (Money Market Funds Only)<sup>A</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Next Day Shadow NAV (by 10 a.m.) (per Fund/per year, plus feeder/class fee) | &nbsp;&nbsp;$15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Same Day Shadow NAV (by 8 p.m.) (per Fund/per year, plus feeder/class fee) | &nbsp;&nbsp; $15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Daily Pricing Vendor Quote (per vendor quote) | &nbsp;&nbsp;Waived |
| &nbsp;&nbsp;&nbsp;&nbsp;• Feeder Fund Shadow NAV (per feeder/per year) | &nbsp;&nbsp;$2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Class Shadow NAV (per class/per year) | &nbsp;&nbsp;$500 |

---

**<u>APPENDIX 4</u>**

**Other Fund Administration Services**

(as applicable)

---

| | |
|:---|:---|
| **1. State Street ProNavigator<sup>SM</sup>** <sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Prospectus / Summary Prospectus \* | &nbsp;&nbsp;Per Page |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o The first 2,000 pages | &nbsp;&nbsp;$150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o All pages over 2,000 pages | &nbsp;&nbsp;$125 |
| &nbsp;&nbsp;&nbsp;&nbsp;• Statement of Additional Information \* | &nbsp;&nbsp;$75 |
| &nbsp;&nbsp;&nbsp;&nbsp;*\*All Funds that are open-end registered investment companies, as of an agreed upon date each year; costs incurred after the transfer of the files to a Fund's financial printer are the responsibility of the Fund.* | &nbsp;&nbsp;&nbsp;&nbsp;*\*All Funds that are open-end registered investment companies, as of an agreed upon date each year; costs incurred after the transfer of the files to a Fund's financial printer are the responsibility of the Fund.* |
| **2. Financial Statement Composition Services**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Composition only | &nbsp;&nbsp;Per Page |
| &nbsp;&nbsp;&nbsp;&nbsp;*Does not include printing costs, mailing costs or filing fees* | &nbsp;&nbsp;TBD |
| **3. CFTC Compliance Testing and Reporting**<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• **Initial Margin and Net Notional Compliance Testing** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Daily (per Fund/per year) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o First 1 – 10 Funds | &nbsp;&nbsp;$11000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Remaining Funds | &nbsp;&nbsp;$6000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Weekly (per Fund/per year) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Monthly (per Fund/per year) | &nbsp;&nbsp;$1500 |
| **4. CPO Annual Exclusion Filing** (Rule 4.5) (per Fund/per year)<sup>B</sup> | &nbsp;&nbsp;$250 |
| **5. Other Special Services** (upon reasonable request)<sup>B</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• **SEC Filing Services** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Form N-14 Filings (per filing) | &nbsp;&nbsp;TBD |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Form 485(a) Filings |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 1 – 5 Funds (per Fund/per filing) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 6 – 10 Funds (per Fund/per filing) | &nbsp;&nbsp;$3500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 11 or more Funds (per Fund/per filing) | &nbsp;&nbsp;$2500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Exemptive Application Filings (per filing) | &nbsp;&nbsp;$5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• **Special Shareholder Meeting Services** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preparation of Form DEF14 and Meeting Materials | &nbsp;&nbsp;$10,000 to $15,000 |
| &nbsp;&nbsp;&nbsp;&nbsp;• **IRS Form 8937** (per Fund/per form) | &nbsp;&nbsp;$1000 |

---

<sup>1</sup> **Domestic Custody and Fund Accounting Basis Point Fee**. The Domestic Custody and Fund Accounting Basis Point Fee will be calculated by multiplying the net asset value (NAV) of the Funds on the last business day of the month by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30 and then allocating to each Fund its pro rata share based on the Fund's percentage of the Funds' NAV. If a Fund holds foreign assets, the market value of such foreign assets will be subtracted from the NAV of the Fund for purposes of this calculation. The market value of foreign assets used for this calculation will be the amount calculated for purposes of applying the Foreign Custody Asset Charges.

<sup>2</sup> **Transaction Processing Fees**. These are fees charged for processing transactions on behalf of the Funds as a part of the custody services under the Custody Agreement. These Transaction Processing Fees, unless otherwise waived, apply whether a Fund or its third party investment managers entered into such transactions with or through a third party dealer or broker or with or through State Street or one of its affiliates (either acting as a trade counterparty or providing agency execution services). The processing fees are in addition to, and are not to be construed as payments in lieu of, any profit or other compensation (as described in Explanatory Note 6 below) that may be earned by such third party dealer or broker or by State Street or any of its affiliates in connection with such transaction.

 

<sup>3</sup> **Definition of Transaction for Billing Purposes; Transaction Count Methodology**. Unless otherwise stated in this Fee Schedule, a transaction includes, without limitation, each buy, sell, reset, exchange, pay down, maturity, assignment, roll, call exercise, warrant exercise, rights exercise, convertible security event, amendment, corporate action or similar investment related action or activity which requires processing by State Street. A complete list of transaction types is available from your client service representative.

The cancel and rebook of any trade at the instruction of the Fund will be treated as two additional transactions (e.g., in addition to the initial trade order) for billing purposes. With respect to TBAs, the initial trade, the subsequent cancel and each pool allocation will be treated as a separate transaction for billing purposes. The initial trade and subsequent cancel will be billed at the TBA rate and each allocation will be billed at the rate applicable to the relevant transaction/asset type. State Street reserves the right to adjust the definition of a billable transaction and adjust the transaction count methodology as new instruments, transaction types or trading techniques emerge.

 

<sup>4</sup> **Wire Transfers**. Charges for Wire Transfers apply to all wires sent or received for the account of a Fund, including, but not limited to, wires to or from demand deposit accounts established by State Street to facilitate transfer agency activity of a Fund's third party transfer agent (including Boston Financial Data Services), if applicable.

 

<sup>5</sup> **Automated Clearing House (ACH) Transfers**. Charges for ACH Transfer charges apply to all such transfers sent or received for the account of a Fund, including, but not limited to, ACH transfers to or from demand deposit accounts established by State Street to facilitate transfer agency activity of a Fund's third party transfer agent (including Boston Financial Data Services), if applicable.

 

<sup>6</sup> **Principal and Agency Trading Services**. State Street Global Markets, a separate division of State Street, offers principal or "dealer" trading services as well as agency execution services in a variety of asset classes, including most of those described in this schedule. State Street, acting as principal through its treasury division, also enters into repurchase transactions with custody clients. A Fund or its third party investment managers may select State Street to effect principal or agency transactions. These transactions, however, are conducted under contractual or other arrangements that are distinct from State Street's services and obligations under the Agreements, irrespective of whether trade orders are transmitted through the custody or trustee operations of State Street in accordance with the Agreements. When State Street acts as a counterparty (e.g., foreign exchange,

OTC derivatives, repurchase transactions, etc.) to a Fund, such transactions are principal transactions and State Street enters into them as a principal and not in a fiduciary, agency or similar capacity (regardless of any other relationships between State Street and the Funds under the Agreements). In connection with such principal or agency execution services, State Street may earn a profit or otherwise receive compensation from the Funds in a variety of forms, including a commission, subscription or click fee, revenue share, spread, mark-up, mark-down, interest, fee or similar amount.

 

<sup>7</sup> **Futures**. Each Buy, Short Sell, Buy to Close, Sell to Close, Cancel Buy, Cancel Short Sell, Cancel Buy to Close and Cancel Sell to Close will be treated as a separate transaction for billing purposes.

 

<sup>8</sup> **Options**. Each Buy, Write, Buy to Close, Sell to Close, Assignment, Exercise, Cancel Buy, Cancel Write, Cancel Buy To Close, Cancel Sell To Close, Cancel Assignment and Cancel Exercise will be treated as a separate transaction for billing purposes.

 

<sup>9</sup> **OTC Derivatives**. OTC Derivatives include OTC Swaps (Bi-lateral or centrally cleared) and OTC Options. Each trade capture for contract creation, amendment, novation or termination will be treated as a separate transaction for billing purposes.

 

<sup>10</sup> **Contracts for Differences**. Each buy, sell, reset, close or amendment will be treated as a separate transaction for billing purposes.

 

<sup>11</sup> **Manual Trade Surcharge**. This surcharge is payable in addition to the listed transaction fees (including, but not limited to, the transaction fees listed in Appendix 1) and applies to all transactions for which trade instructions are submitted in a manner that requires manual processing by State Street or otherwise does not facilitate straight-through processing.

 

<sup>12</sup> **OTC Swap and Option Reconciliations to Counterparty**. Includes reconciliation of position and total market value.

 

<sup>13</sup> **DDA Maintenance Fee**. The DDA Maintenance Fee will not apply to demand deposit accounts established solely for transfer agency activity whether related to a Fund's third party transfer agent or where State Street is performing the transfer agency services.

 

<sup>14</sup> **Pricing Fees**. The stated rates are based on use of State Street's standard pricing vendors. The monthly fee will be based on the number of positions held by each Fund at month-end.

 

<sup>15</sup> **Committed Par**. The term Committed Par means the amount a lender has agreed to lend to a borrower, irrespective of the amount of outstanding loans under a loan commitment at any time.

 

<sup>16</sup> **Committed Par Fee**. The Committed Par Fee will be calculated by multiplying the sum of the Committed Par of each loan serviced for each Fund at month-end by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30.

<sup>17</sup> **Non-USD Committed Par**. Any Committed Par denominated in a foreign currency (if any) shall be converted to USD for billing purposes using the same currency exchange rates used by the Fund to calculate its NAV.

 

<sup>18</sup> **Fund Administration Basis Point Fee**. The Fund Administration Basis Point Fee will be calculated by multiplying the average monthly NAV of the Funds by the applicable basis point rate(s), dividing the result (or the sum of the results if tiered rates apply) by 360 and multiplying that amount by 30, and then allocating to each Fund its pro rata share based on the Fund's percentage of the Funds' NAV. The average monthly NAV of each Fund will be calculated by taking the sum of the Fund's daily NAVs for each day of the calendar month (for each non-business day, the preceding business day's NAV will be used unless the Fund requests use of a different calculation methodology) and dividing that amount by the number of days in the month. State Street reserves the right to bill on the average monthly *<u>gross</u>* asset value rather than the average monthly NAV of a Fund if the use of leverage (including but not limited to short positions) by the Fund reduces its average monthly NAV and thereby reduces by any material amount the Fund Administration Basis Point Fee that otherwise would be payable in the absence of such leverage.

 

<sup>19</sup> **Cross Product Service Fees**. The Cross Product Fees and charges do not constitute out-of-pocket or pass-through expenses (i.e., they include a mark-up and/or overhead cost allocation). Changes to the Cross Product Service Fees and additional fees and charges of a similar nature or type may be implemented by State Street upon 90 day's written notice, subject to agreement between State Street and the Funds.

 

<sup>20</sup> **SWIFT**. Stated fee applies to each outbound SWIFT message generated in relation to a Fund by three State Street systems: Securities Management and Control ("SMAC") messages, Global Securities Management and Control ("GSMAC"), and Multicurrency Horizon ("MCH") messages. SMAC and GSMAC SWIFT messages facilitate particular transactions. MCH SWIFT messages communicate cash statements, holding reports and trade confirmations.

 

<sup>21</sup> **SOC 1**. Service Organization Controls Report prepared in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization (or any successor, replacement or equivalent report that may be introduced from time to time).

 

<sup>22</sup> **Dedicated Hardware / Transmission Lines**. Fee applies if the Funds require use of specific technological hardware that is not otherwise part of State Street's standard technology platform or use of a data transmission connection that is solely dedicated to the Funds. The Fee rate will be agreed after an analysis of the Funds' requirements is completed.

 

<sup>23</sup> **Data Extracts (Standard)**. Stated fee applies to the use of any of the 15 (as of March 25, 2015) CTI MDB Standard Outbound data extracts. For a current listing of CTI MDB Standard Outbound data extracts, please contact your client service representative.

 

<sup>24</sup> **Data Extracts (Non-standard)**. Stated fee applies to the use of any custom created CTI MDB Outbound data extracts.

 

<sup>25</sup> **Custom or Manual Reports (per report)**. Stated fee applies to the one time or recurring creation and distribution of ad-hoc or custom reporting by a State Street employee.

<sup>26</sup> **Customized Programming or Transmissions**. State Street will charge the stated hourly rate for (i) the creation and implementation of Standard or Non Standard Data Extracts as defined above; (ii) for the implementation of dedicated hardware or transmission lines as defined above; and/or (iii) for the implementation any Fund requested customized programming.

 

<sup>27</sup> **Maintenance of Customized Programming or Transmissions**. Stated fee applies to ongoing maintenance required to (i) support necessary infrastructure, information security protocols or data contained in Standard or Non Standard Data Extracts as defined above; (ii) ongoing support for dedicated hardware or transmission lines; and (iii) ongoing support for any Fund requested customized programming.

 

<sup>28</sup> **Subcustodian and Depository Out-of-Pocket Expenses**. Subcustodian and Depository Out-of-Pocket Expenses include, without limitation, expenses for account opening, maintenance and administration, courier/delivery, depository charges, funds transfer fees, issuance of nit, late trades, market entrance charges, name change, proxy, registration, rematerialization, remittance, re-registration, stamp duty or tax, stock exchange levies and tax reclaims, among others. A complete list of Subcustodian and Depository Out-of-Pocket Expenses is available from your client service representative.

 

<sup>29</sup> **Fair Value Vendor Charges**. At the request and direction of the Funds, State Street will source fair value pricing from the Funds' preferred vendor(s). All amounts invoiced to State Street by such vendors with respect to fair value pricing for the Funds will be charged to the Funds as a reimbursable out-of-pocket expense.

<sup>30</sup> **Pricing (Non-standard Vendors)**. At the request and direction of the Funds, State Street will source securities and asset pricing from non-standard vendors. All amounts invoiced to State Street by such vendors with respect to non-standard vendor pricing for the Funds will be charged to the Funds as a reimbursable out-of-pocket expense. A complete listing of standard pricing vendors is available from your client service representative.

<sup>31</sup> **Reasonable External Legal Expenses**. Reasonable external legal expenses incurred by State Street will be charged to the Funds as a reimbursable out-of-pocket expense in circumstances permitted by the Agreements or as otherwise agreed by State Street and the Funds.

 

<sup>32</sup> **Cost of responding to third party subpoenas and/or regulatory inquires**. The fee of $5,000 is not an out-of-pocket or pass-through expense and is intended to defray internal costs that may be associated with responding to third party subpoenas and/or regulatory inquires. These costs typically include, without limitation, the cost of management and staff time, the use of internal legal, compliance, risk management, business controls, IT and other resources, and data and document retention, storage and production costs, among others. State Street shall have no obligation to account to the Funds for the type or amount of internal costs actually incurred and such costs may be less than (or exceed) the amount of the fee.

<sup>33</sup> **Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges**. The Foreign Custody and Fund Accounting Asset Charges will be calculated by multiplying the USD market value of the cash, securities and other assets held in custody on behalf of each Fund at month-end by the applicable basis point rate(s) (based on custody location), dividing the result (or the sum of such results) by 360 and multiplying that amount by 30. With respect to assets held outside of the U.S., custody location is determined for billing purposes by reference to the jurisdiction in which State Street, its subcustodian or a Securities System, as the case may be, holds the relevant asset or, if the asset is immobilized or dematerialized and record ownership is maintained only in book-entry form, custody location means the jurisdiction of the Securities System through which State Street maintains the record of the Fund's entitlement to such asset, provided that the custody location for on-book currencies will be the jurisdiction that issues the relevant currency. For purposes of this fee calculation, State Street will utilize the same local currency market values and the same currency exchange rates to convert those values to USD that are used to calculate the NAV of each Fund, provided that the absolute value of any negative cash, security or other asset position will be used. For custody only Funds, State Street will utilize its standard pricing vendors to obtain a market value for each position. If a market value for a position is not available from such vendors, State Street will utilize the same market value for such position that is used by the Fund to calculate its NAV or otherwise value its portfolio, which value will be supplied by the Fund promptly upon request. If following such a request a Fund is unable to provide a market value within five (5) days of month-end, State Street will utilize the market value of the position from the prior month-end and is authorized to continue to use such value until an update is supplied by the Fund or otherwise becomes available from State Street's standard pricing vendors. For illiquid positions, each Fund will be responsible for supplying State Street with a market value as of the date of purchase (or initial custody by State Street) and at least annually thereafter. The Foreign Custody Transaction Charges are fees imposed for processing transactions on behalf of each Fund in the relevant foreign market as part of the custody services. The Manual Trade Surcharge specified in Section I of the Fee Schedule will also be assessed on a foreign custody transaction, as applicable. The Foreign Custody and Fund Accounting Asset Charges and Foreign Custody Transaction Charges applicable with respect to custody services in any country not listed in Appendix 1 above will be negotiated and agreed by State Street and the Funds prior to investment in such country.

**Custody Only.** Reference to "custody only" refers to any custody relationship with a Fund where State Street does not also provide fund accounting or portfolio accounting services to such Fund.

## Ex-99.(H)(2)(G)

**Exhibit 99.(h)(2)(G)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**SIXTH AMENDMENT**

**TO**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Sixth Amendment ("Amendment") to the Sub-Administrative Services Fee Agreement dated April 30, 2020 by and between the American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, the American Beacon Institutional Funds Trust, the American Beacon Sound Point Enhanced Income Fund and the American Beacon Apollo Total Return Fund, each a Delaware statutory trust, (collectively, the "Trusts"), and American Beacon Advisors, Inc., a Delaware corporation (the "Manager") is effective as of April 30, 2020. Capitalized terms used in this Amendment without definition shall have the respective meanings ascribed to such terms in the Agreement (as defined below).

WHEREAS, the parties wish to amend the Agreement as set forth below:

Manager and the Trusts wish to remove the American Beacon Acadian Emerging Markets Managed Volatility, American Beacon Alpha Quant Core, American Beacon Alpha Quant Dividend, American Beacon Alpha Quant Quality and American Beacon Alpha Quant Value Funds from Schedule A to the Agreement as set forth below;

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Agreement, pursuant to the terms thereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Agreement and its Schedule A are amended to reflect the removal of the following Funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. American Beacon Acadian Emerging Markets Managed Volatility Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. American Beacon Alpha Quant Core Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. American Beacon Alpha Quant Dividend Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. American Beacon Alpha Quant Quality Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. American Beacon Alpha Quant Value Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Schedule A is hereby deleted in its entirety and replaced with the updated attached Schedule A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as specifically amended hereby, all other terms and conditions of the Agreement shall remain in
full force and effect. This Amendment is incorporated in its entirety into the Agreement, and this Amendment and said Agreement shall
be read and interpreted together as the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective seals to be hereunto affixed, as of the day and year first above written.

AMERICAN BEACON FUNDS

AMERICAN BEACON SELECT FUNDS

AMERICAN BEACON INSTITUTIONAL FUNDS TRUST

AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND

AMERICAN BEACON APOLLO TOTAL RETURN FUND

---

| | |
|:---|:---|
| By: | /s/ Gene L. Needles, Jr. |
|  | Gene L. Needles, Jr. |
|  | President |

---

AMERICAN BEACON ADVISORS, INC.

---

| | |
|:---|:---|
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President and Chief Operating Officer |

---

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE A**

**American Beacon Funds**

American Beacon AHL Managed Futures Strategy Fund

American Beacon AHL Target Risk Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Continuous Capital Emerging Markets Fund

American Beacon Crescent Short Duration High Income Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon GLG Total Return Fund

American Beacon Frontier Markets Income Fund

American Beacon International Equity Fund

American Beacon Large Cap Value Fund

American Beacon Mid-Cap Value Fund

American Beacon Shapiro Equity Opportunities Fund

American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon Sound Point Floating Rate Income Fund

American Beacon SSI Alternative Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon Tocqueville International Value Fund

American Beacon TwentyFour Short Term Bond Fund

American Beacon TwentyFour Strategic Income Fund

American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUND**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

American Beacon Sound Point Enhanced Income Fund

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

American Beacon Apollo Total Return Fund

Effective Date: April 30, 2020

## Ex-99.(H)(2)(H)

**Exhibit 99.(h)(2)(H)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**SEVENTH AMENDMENT**

**TO**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Seventh Amendment ("Amendment") to the Sub-Administrative Services Fee Agreement dated April 30, 2017 ("Agreement") by and between the American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, the American Beacon Institutional Funds Trust, the American Beacon Sound Point Enhanced Income Fund and the American Beacon Apollo Total Return Fund, each a Delaware statutory trust, (collectively, the "Trusts"), and American Beacon Advisors, Inc., a Delaware corporation (the "Manager") is effective as of July 31, 2020. Capitalized terms used in this Amendment without definition shall have the respective meanings ascribed to such terms in the Agreement (as defined below).

WHEREAS, the parties wish to amend the Agreement as set forth below:

Manager and the Trusts wish to remove the American Beacon GLG Total Return Fund from Schedule A to the Agreement as set forth below;

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Agreement, pursuant to the terms thereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Agreement and its Schedule A are amended to reflect the removal of the following Funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. American Beacon GLG Total Return Fund, effective June 30, 2020

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Schedule A is hereby deleted in its entirety and replaced with the updated attached Schedule A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as specifically amended hereby, all other terms and conditions of the Agreement shall remain in
full force and effect. This Amendment is incorporated in its entirety into the Agreement, and this Amendment and said Agreement shall
be read and interpreted together as the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective seals to be hereunto affixed, as of the day and year first above written.

AMERICAN BEACON FUNDS

AMERICAN BEACON SELECT FUNDS

AMERICAN BEACON INSTITUTIONAL FUNDS TRUST

AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND

AMERICAN BEACON APOLLO TOTAL RETURN FUND

---

| | |
|:---|:---|
| By: | /s/ Gene L. Needles, Jr. |
|  | Gene L. Needles, Jr. |
|  | President |

---

AMERICAN BEACON ADVISORS, INC.

---

| | |
|:---|:---|
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President and Chief Operating Officer |

---

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE A**

**American Beacon Funds**

American Beacon AHL Managed Futures Strategy Fund

American Beacon AHL Target Risk Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Continuous Capital Emerging Markets Fund

American Beacon Crescent Short Duration High Income Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon Frontier Markets Income Fund

American Beacon International Equity Fund

American Beacon Large Cap Value Fund

American Beacon Mid-Cap Value Fund

American Beacon Shapiro Equity Opportunities Fund

American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon Sound Point Floating Rate Income Fund

American Beacon SSI Alternative Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon Tocqueville International Value Fund

American Beacon TwentyFour Short Term Bond Fund

American Beacon TwentyFour Strategic Income Fund

American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUND**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

American Beacon Sound Point Enhanced Income Fund

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

American Beacon Apollo Total Return Fund

Effective Date: June 30, 2020

## Ex-99.(H)(2)(I)

**Exhibit 99.(h)(2)(I)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**EIGHTH AMENDMENT**

**TO**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Eighth Amendment ("Amendment") to the Sub-Administrative Services Fee Agreement dated April 30, 2017 ("Agreement") by and between the American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, the American Beacon Institutional Funds Trust, the American Beacon Sound Point Enhanced Income Fund and the American Beacon Apollo Total Return Fund, each a Delaware statutory trust, (collectively, the "Trusts"), and American Beacon Advisors, Inc., a Delaware corporation (the "Manager") is effective as of September 10, 2020. Capitalized terms used in this Amendment without definition shall have the respective meanings ascribed to such terms in the Agreement (as defined below).

WHEREAS, the parties wish to amend the Agreement as set forth below:

Manager and the Trusts wish to add the American Beacon NIS Core Plus Bond Fund from Schedule A to the Agreement as set forth below;

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Agreement, pursuant to the terms thereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Agreement and its Schedule A are amended to reflect the addition of the following Fund:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. American Beacon NIS Core Plus Bond Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Schedule A is hereby deleted in its entirety and replaced with the updated attached Schedule A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as specifically amended hereby, all other terms and conditions of the Agreement shall remain in
full force and effect. This Amendment is incorporated in its entirety into the Agreement, and this Amendment and said Agreement shall
be read and interpreted together as the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective seals to be hereunto affixed, as of the day and year first above written.

AMERICAN BEACON FUNDS

AMERICAN BEACON SELECT FUNDS

AMERICAN BEACON INSTITUTIONAL FUNDS TRUST

AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND

AMERICAN BEACON APOLLO TOTAL RETURN FUND

---

| | |
|:---|:---|
| By: | /s/ Gene L. Needles, Jr. |
|  | Gene L. Needles, Jr. |
|  | President |

---

AMERICAN BEACON ADVISORS, INC.

---

| | |
|:---|:---|
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President and Chief Operating Officer |

---

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE A**

**American Beacon Funds**

American Beacon AHL Managed Futures Strategy Fund

American Beacon AHL Target Risk Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Continuous Capital Emerging Markets Fund

American Beacon Crescent Short Duration High Income Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon Frontier Markets Income Fund

American Beacon International Equity Fund

American Beacon Large Cap Value Fund

American Beacon Mid-Cap Value Fund

American Beacon NIS Core Plus Bond Fund

American Beacon Shapiro Equity Opportunities Fund

American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon Sound Point Floating Rate Income Fund

American Beacon SSI Alternative Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon Tocqueville International Value Fund

American Beacon TwentyFour Short Term Bond Fund

American Beacon TwentyFour Strategic Income Fund

American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUND**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

American Beacon Sound Point Enhanced Income Fund

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

American Beacon Apollo Total Return Fund

Effective Date: September 10, 2020

## Ex-99.(H)(2)(J)

**Exhibit 99.(h)(2)(J)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**NINTH AMENDMENT**

**TO**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Ninth Amendment ("Amendment") to the Sub-Administrative Services Fee Agreement dated April 30, 2017 ("Agreement") by and between the American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, the American Beacon Institutional Funds Trust, the American Beacon Sound Point Enhanced Income Fund and the American Beacon Apollo Total Return Fund, each a Delaware statutory trust, (collectively, the "Trusts"), and American Beacon Advisors, Inc., a Delaware corporation (the "Manager") is effective as of September 30, 2020. Capitalized terms used in this Amendment without definition shall have the respective meanings ascribed to such terms in the Agreement (as defined below).

WHEREAS, the parties wish to amend the Agreement as set forth below:

Manager and the Trusts wish to remove the American Beacon Crescent Short Duration High Income Fund from Schedule A to the Agreement as set forth below.

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Agreement, pursuant to the terms thereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Agreement and its Schedule A are amended to reflect the removal of the following Fund:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. American Beacon Crescent Short Duration High Income Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Schedule A is hereby deleted in its entirety and replaced with the updated attached Schedule A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as specifically amended hereby, all other terms and conditions of the Agreement shall remain in
full force and effect. This Amendment is incorporated in its entirety into the Agreement, and this Amendment and said Agreement shall
be read and interpreted together as the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective seals to be hereunto affixed, as of the day and year first above written.

AMERICAN BEACON FUNDS

AMERICAN BEACON SELECT FUNDS

AMERICAN BEACON INSTITUTIONAL FUNDS TRUST

AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND

AMERICAN BEACON APOLLO TOTAL RETURN FUND

---

| | |
|:---|:---|
| By: | /s/ Gene L. Needles, Jr. |
|  | Gene L. Needles, Jr. |
|  | President |

---

AMERICAN BEACON ADVISORS, INC.

---

| | |
|:---|:---|
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President and Chief Operating Officer |

---

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE A**

**American Beacon Funds**

American Beacon AHL Managed Futures Strategy Fund

American Beacon AHL Target Risk Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Continuous Capital Emerging Markets Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon Frontier Markets Income Fund

American Beacon International Equity Fund

American Beacon Large Cap Value Fund

American Beacon Mid-Cap Value Fund

American Beacon NIS Core Plus Bond Fund

American Beacon Shapiro Equity Opportunities Fund

American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon Sound Point Floating Rate Income Fund

American Beacon SSI Alternative Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon Tocqueville International Value Fund

American Beacon TwentyFour Short Term Bond Fund

American Beacon TwentyFour Strategic Income Fund

American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUND**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

American Beacon Sound Point Enhanced Income Fund

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

American Beacon Apollo Total Return Fund

Effective Date: September 30, 2020

## Ex-99.(H)(2)(K)

**Exhibit 99.(h)(2)(K)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**TENTH AMENDMENT**

**TO**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Tenth Amendment ("Amendment") to the Sub-Administrative Services Fee Agreement dated April 30, 2017 ("Agreement") by and between the American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, the American Beacon Institutional Funds Trust, the American Beacon Sound Point Enhanced Income Fund and the American Beacon Apollo Total Return Fund, each a Delaware statutory trust, (collectively, the "Trusts"), and American Beacon Advisors, Inc., a Delaware corporation (the "Manager") is effective as of November 2, 2020. Capitalized terms used in this Amendment without definition shall have the respective meanings ascribed to such terms in the Agreement (as defined below).

WHEREAS, the parties wish to amend the Agreement as set forth below:

Manager and the Trusts wish to add the American Beacon AHL TargetRisk Core Fund to Schedule A to the Agreement as set forth below.

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Agreement, pursuant to the terms thereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Agreement and its Schedule A are amended to reflect the addition of the following Fund:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. American Beacon AHL TargetRisk Core Fund effective on or about December 1, 2020

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Schedule A is hereby deleted in its entirety and replaced with the updated attached Schedule A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as specifically amended hereby, all other terms and conditions of the Agreement shall remain in
full force and effect. This Amendment is incorporated in its entirety into the Agreement, and this Amendment and said Agreement shall
be read and interpreted together as the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective seals to be hereunto affixed, as of the day and year first above written.

AMERICAN BEACON FUNDS

AMERICAN BEACON SELECT FUNDS

AMERICAN BEACON INSTITUTIONAL FUNDS TRUST

AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND

AMERICAN BEACON APOLLO TOTAL RETURN FUND

---

| | |
|:---|:---|
| By: | /s/ Gene L. Needles, Jr. |
|  | Gene L. Needles, Jr. |
|  | President |

---

AMERICAN BEACON ADVISORS, INC.

---

| | |
|:---|:---|
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President and Chief Operating Officer |

---

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE A**

**American Beacon Funds**

American Beacon AHL Managed Futures Strategy Fund

American Beacon AHL TargetRisk Fund

American Beacon AHL TargetRisk Core Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Continuous Capital Emerging Markets Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon Frontier Markets Income Fund

American Beacon International Equity Fund

American Beacon Large Cap Value Fund

American Beacon Mid-Cap Value Fund

American Beacon NIS Core Plus Bond Fund

American Beacon Shapiro Equity Opportunities Fund

American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon Sound Point Floating Rate Income Fund

American Beacon SSI Alternative Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon Tocqueville International Value Fund

American Beacon TwentyFour Short Term Bond Fund

American Beacon TwentyFour Strategic Income Fund

American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUND**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

American Beacon Sound Point Enhanced Income Fund

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

American Beacon Apollo Total Return Fund

Effective Date: November 2, 2020

## Ex-99.(H)(2)(L)

**Exhibit 99.(h)(2)(L)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**ELEVENTH AMENDMENT**

**TO**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Eleventh Amendment ("Amendment") to the Sub-Administrative Services Fee Agreement dated April 30, 2017 ("Agreement") by and between the American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, the American Beacon Institutional Funds Trust, the American Beacon Sound Point Enhanced Income Fund and the American Beacon Apollo Total Return Fund, each a Delaware statutory trust, (collectively, the "Trusts"), and American Beacon Advisors, Inc., a Delaware corporation (the "Manager") is effective as of August 2, 2021. Capitalized terms used in this Amendment without definition shall have the respective meanings ascribed to such terms in the Agreement (as defined below).

WHEREAS, the parties wish to amend the Agreement as set forth below:

The Manager and the Trusts wish to amend and replace Schedule A to the Agreement to reflect the name change of the American Beacon TwentyFour Short Term Bond Fund to the American Beacon TwentyFour Sustainable Short Term Bond Fund, as set forth below.

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Agreement, pursuant to the terms thereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Agreement is hereby amended to reflect the name change of the American Beacon TwentyFour Short Term
Bond Fund to the American Beacon TwentyFour Sustainable Short Term Bond Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Schedule A is hereby deleted in its entirety and replaced with the updated attached Schedule A to change
the name of the American Beacon TwentyFour Short Term Bond Fund to the American Beacon TwentyFour Sustainable Short Term Bond Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as specifically amended hereby, all other terms and conditions of the Agreement shall remain in
full force and effect. This Amendment is incorporated in its entirety into the Agreement, and this Amendment and said Agreement shall
be read and interpreted together as the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective seals to be hereunto affixed, as of the day and year first above written.

AMERICAN BEACON FUNDS

AMERICAN BEACON SELECT FUNDS

AMERICAN BEACON INSTITUTIONAL FUNDS TRUST

AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND

AMERICAN BEACON APOLLO TOTAL RETURN FUND

---

| | |
|:---|:---|
| By: | /s/ Gene L. Needles, Jr. |
|  | Gene L. Needles, Jr. |
|  | President |

---

AMERICAN BEACON ADVISORS, INC.

---

| | |
|:---|:---|
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President and Chief Operating Officer |

---

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE A**

**American Beacon Funds**

American Beacon AHL Managed Futures Strategy Fund

American Beacon AHL TargetRisk Fund

American Beacon AHL TargetRisk Core Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Continuous Capital Emerging Markets Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon Frontier Markets Income Fund

American Beacon International Equity Fund

American Beacon Large Cap Value Fund

American Beacon Mid-Cap Value Fund

American Beacon NIS Core Plus Bond Fund

American Beacon Shapiro Equity Opportunities Fund

American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon Sound Point Floating Rate Income Fund

American Beacon SSI Alternative Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon Tocqueville International Value Fund

American Beacon TwentyFour Sustainable Short Term Bond Fund

American Beacon TwentyFour Strategic Income Fund

American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUND**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

**AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND**

American Beacon Sound Point Enhanced Income Fund

**AMERICAN BEACON APOLLO TOTAL RETURN FUND**

American Beacon Apollo Total Return Fund

Effective Date: August 2, 2021

## Ex-99.(H)(2)(M)

**Exhibit 99.(h)(2)(M)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**TWELFTH AMENDMENT**

**TO**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Twelfth Amendment ("Amendment") to the Sub-Administrative Services Fee Agreement dated April 30, 2017 ("Agreement") by and between the American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, the American Beacon Institutional Funds Trust, the American Beacon Sound Point Enhanced Income Fund, and the American Beacon Apollo Total Return Fund, each a Delaware statutory trust, (collectively, the "Trusts"), and American Beacon Advisors, Inc., a Delaware corporation (the "Manager") is effective as of May 23, 2022. Capitalized terms used in this Amendment without definition shall have the respective meanings ascribed to such terms in the Agreement (as defined below).

WHEREAS, the parties wish to amend the Agreement as set forth below:

The Manager and the Trusts wish to amend and replace Schedule A to the Agreement to reflect the termination of the American Beacon Sound Point Enhanced Income Fund and the American Beacon Apollo Total Return Fund, as set forth below.

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Agreement, pursuant to the terms thereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Agreement is hereby amended to reflect the termination of the American Beacon Sound Point Enhanced
Income Fund and the American Beacon Apollo Total Return Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Schedule A is hereby deleted in its entirety and replaced with the updated attached Schedule A to remove
the American Beacon Sound Point Enhanced Income Fund and the American Beacon Apollo Total Return Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as specifically amended hereby, all other terms and conditions of the Agreement shall remain in
full force and effect. This Amendment is incorporated in its entirety into the Agreement, and this Amendment and said Agreement shall
be read and interpreted together as the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective seals to be hereunto affixed, as of the day and year first above written.

AMERICAN BEACON FUNDS

AMERICAN BEACON SELECT FUNDS

AMERICAN BEACON INSTITUTIONAL FUNDS TRUST

---

| | |
|:---|:---|
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President |

---

AMERICAN BEACON SOUND POINT ENHANCED INCOME FUND

AMERICAN BEACON APOLLO TOTAL RETURN FUND

---

| | |
|:---|:---|
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | Vice President |

---

AMERICAN BEACON ADVISORS, INC.

---

| | |
|:---|:---|
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President and Chief Executive Officer |

---

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE A**

**American Beacon Funds**

American Beacon AHL Managed Futures Strategy Fund

American Beacon AHL TargetRisk Fund

American Beacon AHL TargetRisk Core Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Continuous Capital Emerging Markets Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon Frontier Markets Income Fund

American Beacon International Equity Fund

American Beacon Large Cap Value Fund

American Beacon Mid-Cap Value Fund

American Beacon NIS Core Plus Bond Fund

American Beacon Shapiro Equity Opportunities Fund

American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon Sound Point Floating Rate Income Fund

American Beacon SSI Alternative Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon Tocqueville International Value Fund

American Beacon TwentyFour Sustainable Short Term Bond Fund

American Beacon TwentyFour Strategic Income Fund

American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUNDS**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

Effective Date: May 23, 2022

## Ex-99.(H)(2)(N)

**Exhibit 99.(h)(2)(N)**

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**THIRTEENTH AMENDMENT**

**TO**

**SUB-ADMINISTRATIVE SERVICES FEE AGREEMENT**

This Thirteenth Amendment ("Amendment") to the Sub-Administrative Services Fee Agreement dated April 30, 2017 ("Agreement") by and between the American Beacon Funds and the American Beacon Select Funds, each a Massachusetts business trust, and the American Beacon Institutional Funds Trust, a Delaware statutory trust, (collectively, the "Trusts"), and American Beacon Advisors, Inc., a Delaware corporation (the "Manager") is effective as of January 31, 2023. Capitalized terms used in this Amendment without definition shall have the respective meanings ascribed to such terms in the Agreement (as defined below).

WHEREAS, the parties wish to amend the Agreement as set forth below:

The Manager and the Trusts wish to amend and replace Schedule A to the Agreement to reflect the termination of the American Beacon Continuous Capital Emerging Markets Fund and the American Beacon Mid-Cap Value Fund and to change the names of the American Beacon Frontier Markets Income Fund to American Beacon Developing World Income Fund, the American Beacon Sound Point Floating Rate Income Fund to American Beacon FEAC Floating Rate Income Fund, and the American Beacon Tocqueville International Value Fund to the American Beacon EAM International Small Cap Fund as set forth below.

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Agreement, pursuant to the terms thereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Agreement is hereby amended to reflect the termination of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. American Beacon Continuous Capital Emerging Markets Fund, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. American Beacon Mid-Cap Value Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Agreement is hereby amended to reflect the following change the names:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. American Beacon Frontier Markets Income Fund to American Beacon Developing World Income Fund,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. American Beacon Sound Point Floating Rate Income Fund to American Beacon FEAC Floating Rate Income Fund,
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. American Beacon Tocqueville International Value Fund to the American Beacon EAM International Small Cap
Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Schedule A is hereby deleted in its entirety and replaced with the updated attached Schedule A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Except as specifically amended hereby, all other terms and conditions of the Agreement shall remain in
full force and effect. This Amendment is incorporated in its entirety into the Agreement, and this Amendment and said Agreement shall
be read and interpreted together as the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective seals to be hereunto affixed, as of the day and year first above written.

---

| | |
|:---|:---|
| AMERICAN BEACON FUNDS<br> AMERICAN BEACON SELECT FUNDS<br> AMERICAN BEACON INSTITUTIONAL FUNDS TRUST | AMERICAN BEACON FUNDS<br> AMERICAN BEACON SELECT FUNDS<br> AMERICAN BEACON INSTITUTIONAL FUNDS TRUST |
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President |

---

---

| | |
|:---|:---|
| AMERICAN BEACON ADVISORS, INC. | AMERICAN BEACON ADVISORS, INC. |
| By: | /s/ Jeffrey K. Ringdahl |
|  | Jeffrey K. Ringdahl |
|  | President and Chief Executive Officer |

---

**AMERICAN BEACON FUNDS**

**AMERICAN BEACON SELECT FUNDS**

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

**SUB-ADMINISTRATIVE SERVICES FEE Agreement**

**SCHEDULE A**

**American Beacon Funds**

American Beacon AHL Managed Futures Strategy Fund

American Beacon AHL TargetRisk Fund

American Beacon AHL TargetRisk Core Fund

American Beacon ARK Transformational Innovation Fund

American Beacon Bahl & Gaynor Small Cap Growth Fund

American Beacon Balanced Fund

American Beacon Bridgeway Large Cap Growth Fund

American Beacon Bridgeway Large Cap Value Fund

American Beacon Garcia Hamilton Quality Bond Fund

American Beacon Developing World Income Fund

American Beacon International Equity Fund

American Beacon Large Cap Value Fund

American Beacon NIS Core Plus Bond Fund

American Beacon Shapiro Equity Opportunities Fund

American Beacon Shapiro SMID Cap Equity Fund

American Beacon SiM High Yield Opportunities Fund

American Beacon Small Cap Value Fund

American Beacon FEAC Floating Rate Income Fund

American Beacon SSI Alternative Income Fund

American Beacon Stephens Mid-Cap Growth Fund

American Beacon Stephens Small Cap Growth Fund

American Beacon The London Company Income Equity Fund

American Beacon EAM International Small Cap Fund

American Beacon TwentyFour Sustainable Short Term Bond Fund

American Beacon TwentyFour Strategic Income Fund

American Beacon Zebra Small Cap Equity Fund

**AMERICAN BEACON SELECT FUNDS**

American Beacon U.S. Government Money Market Select Fund

**AMERICAN BEACON INSTITUTIONAL FUNDS TRUST**

American Beacon Diversified Fund

Effective Date: January 31, 2023

## Ex-99.(H)(3)(H)

**Exhibit 99.(h)(3)(H)**

SEVENTH AMENDMENT TO

SECURITIES LENDING AUTHORIZATION AGREEMENT

BETWEEN

AMERICAN BEACON FUNDS AND AMERICAN BEACON INSTITUTIONAL FUNDS TRUST,

EACH ON BEHALF OF ITS RESPECTIVE SERIES, AS LISTED ON <u>SCHEDULE B</u>

AND

STATE STREET BANK AND TRUST COMPANY

This Seventh Amendment (this "Amendment") dated November 29, 2022 is between each AMERICAN BEACON investment company listed on Schedule B (each, a "Trust"), severally and not jointly, each acting solely on behalf of its series listed on Schedule B, severally and not jointly (a Trust acting on behalf of one of its series, a "Fund," and the Trusts acting on behalf of their respective series, collectively, the "Funds"), and STATE STREET BANK AND TRUST COMPANY, acting either directly or through any State Street affiliates (collectively "State Street").

Reference is made to a Securities Lending Authorization Agreement dated the 16th day of February 2017, as in effect immediately prior to the date of this Amendment Street (the "Agreement"), between the Funds and State Street.

WHEREAS, the Trust and State Street desire to amend the Agreement as set forth below.

NOW, THEREFORE, for value received, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties mutually agree to amend the Agreement as follows:

1. <u>Amendment</u>. <u>Schedule B</u> to the Agreement is hereby amended by deleting it in its entirety and replacing it with the revised <u>Schedule B</u> attached to this Amendment.

2. <u>Definitions</u>. All capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Agreement.

3. <u>Representations and Warranties</u>. Each party hereto represents and warrants that (a) it has the power to execute and deliver this Amendment, to enter into the transactions contemplated hereby, and to perform its obligations hereunder; (b) it has taken all necessary action to authorize such execution, delivery, and performance; (c) this Amendment constitutes a legal, valid and binding obligation enforceable against it; and (d) the execution, delivery, and performance by it of the Agreement will at all times comply with all applicable laws and regulations.

4. <u>Governing Law; Miscellaneous</u>. This Amendment shall be governed and construed in accordance with the governing law of the Agreement. Except to the extent specifically amended by this Amendment, the provisions of the Agreement shall remain unmodified, and the Agreement is ratified and affirmed as being in full force and effect. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, but such counterparts, together, constitute only one (1) instrument.

5. <u>Effective Date</u>. This Amendment shall be effective as of the date first written above.

IN WITNESS WHEREOF, the parties hereto execute this Seventh Amendment by affixing their duly authorized signatures below.

---

| | | | |
|:---|:---|:---|:---|
| EACH TRUST, acting solely on behalf of each<br> of its respective series as listed on <u>Schedule B</u>, severally and not jointly | EACH TRUST, acting solely on behalf of each<br> of its respective series as listed on <u>Schedule B</u>, severally and not jointly | STATE STREET BANK AND TRUST COMPANY | STATE STREET BANK AND TRUST COMPANY |
| By: | /s/ Paul B. Cavazos | By: | /s/ Francesco Squillacioti |
| Name: | Paul B. Cavazos | Name: | Francesco Squillacioti |
| Title: | Vice President | Title: | Senior Managing Director |

---

**Amended and Restated**

**Schedule B**

This Amended and Restated Schedule is attached to and made part of the Securities Lending Authorization Agreement dated the 16th day of February 2017 between each AMERICAN BEACON investment company listed on Schedule B (each, a "Trust"), severally and not jointly, each acting solely on behalf of its series listed on <u>Schedule B</u>, severally and not jointly (a Trust acting on behalf of one of its series, a "Fund," and the Trusts acting on behalf of their respective series, collectively, the "Funds"), and STATE STREET BANK AND TRUST COMPANY acting either directly or through any State Street Affiliates (collectively, "State Street").

**List of Trusts and Funds**

---

| | | | |
|:---|:---|:---|:---|
| **Trust Name and Jurisdiction** | **Fund Name** | **Taxpayer Identification Number** | **Fiscal Year End** |
| American Beacon Funds, a Massachusetts business trust | American Beacon Balanced Fund | 75-2161800 | 31-Oct |
| American Beacon Funds, a Massachusetts business trust | American Beacon Large Cap Value Fund | 75-2161801 | 31-Oct |
| American Beacon Funds, a Massachusetts business trust | American Beacon Small Cap Value Fund | 75-2791825 | 31-Oct |
| American Beacon Funds, a Massachusetts business trust | American Beacon Bridgeway Large Cap Value Fund | 87-0709984 | 31-Dec |
| American Beacon Funds, a Massachusetts business trust | American Beacon Bridgeway Large Cap Growth Fund | 87-0709982 | 31-Dec |
| American Beacon Funds, a Massachusetts business trust | American Beacon Stephens Mid-Cap Growth Fund | 20-3787613 | 31-Dec |
| American Beacon Funds, a Massachusetts business trust | American Beacon Stephens Small Cap Growth Fund | 20-3541234 | 31-Dec |
| American Beacon Funds, a Massachusetts business trust | American Beacon Zebra Small Cap Equity Fund | 27-2501754 | 31-Aug |
| American Beacon Funds, a Massachusetts business trust | American Beacon The London Company Income Equity Fund | 45-4621832 | 31-Aug |
| American Beacon Funds, a Massachusetts business trust | American Beacon International Equity Fund | 75-2401150 | 31-Oct |
| American Beacon Funds, a Massachusetts business trust | American Beacon ARK Transformational Innovation Fund | 81-4595263 | 30-Jun |

---

---

| | | | |
|:---|:---|:---|:---|
| **Trust Name and Jurisdiction** | **Fund Name** | **Taxpayer Identification Number** | **Fiscal Year End** |
| American Beacon Funds, a Massachusetts business trust | American Beacon Shapiro Equity Opportunities Fund | 82-2094363 | 30-Jun |
| American Beacon Funds, a Massachusetts business trust | American Beacon Shapiro SMID Cap Equity Fund | 82-2098235 | 30-Jun |
| American Beacon Institutional Funds Trust, a Delaware business trust | American Beacon Diversified Fund | 81-4879015 | 31-Oct |
| American Beacon Funds, a Massachusetts business trust | American Beacon Tocqueville International Value Fund | 13-3771781 | 31-Oct |

---

## Ex-99.(H)(3)(I)

**Exhibit 99.(h)(3)(I)**

EIGHTH AMENDMENT TO

SECURITIES LENDING AUTHORIZATION AGREEMENT

BETWEEN

AMERICAN BEACON FUNDS AND AMERICAN BEACON INSTITUTIONAL FUNDS <br> TRUST, EACH ON BEHALF OF ITS RESPECTIVE SERIES, AS LISTED ON <u>SCHEDULE B</u>

AND

STATE STREET BANK AND TRUST COMPANY

This Eighth Amendment (this "Amendment") effective January 31, 2023 is between each AMERICAN BEACON investment company listed on Schedule B (each, a "Trust"), severally and not jointly, each acting solely on behalf of its series listed on Schedule B, severally and not jointly (a Trust acting on behalf of one of its series, a "Fund," and the Trusts acting on behalf of their respective series, collectively, the "Funds"), and STATE STREET BANK AND TRUST COMPANY, acting either directly or through any State Street affiliates (collectively "State Street").

Reference is made to a Securities Lending Authorization Agreement dated the 16th day of February 2017, as in effect immediately prior to the date of this Amendment Street (the "Agreement"), between the Funds and State Street.

WHEREAS, the Trust and State Street desire to amend the Agreement as set forth below.

NOW, THEREFORE, for value received, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties mutually agree to amend the Agreement as follows:

1. <u>Amendment</u>. <u>Schedule B</u> to the Agreement is hereby amended by deleting it in its entirety and replacing it with the revised <u>Schedule B</u> attached to this Amendment.

2. <u>Definitions</u>. All capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Agreement.

3. <u>Representations and Warranties</u>. Each party hereto represents and warrants that (a) it has the power to execute and deliver this Amendment, to enter into the transactions contemplated hereby, and to perform its obligations hereunder; (b) it has taken all necessary action to authorize such execution, delivery, and performance; (c) this Amendment constitutes a legal, valid and binding obligation enforceable against it; and (d) the execution, delivery, and performance by it of the Agreement will at all times comply with all applicable laws and regulations.

4. <u>Governing Law; Miscellaneous</u>. This Amendment shall be governed and construed in accordance with the governing law of the Agreement. Except to the extent specifically amended by this Amendment, the provisions of the Agreement shall remain unmodified, and the Agreement is ratified and affirmed as being in full force and effect. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, but such counterparts, together, constitute only one (1) instrument.

5. <u>Effective Date</u>. This Amendment shall be effective as of the date first written above.

IN WITNESS WHEREOF, the parties hereto execute this Eighth Amendment by affixing their duly authorized signatures below.

---

| | | | |
|:---|:---|:---|:---|
| EACH TRUST, acting solely on behalf of each<br> of its respective series as listed on <u>Schedule B</u>, severally and not jointly | EACH TRUST, acting solely on behalf of each<br> of its respective series as listed on <u>Schedule B</u>, severally and not jointly | STATE STREET BANK AND TRUST COMPANY | STATE STREET BANK AND TRUST COMPANY |
| By: | /s/ Paul B. Cavazos | By: | /s/ Francesco Squillacioti |
| Name: | Paul B. Cavazos | Name: | Francesco Squillacioti |
| Title: | Vice President | Title: | Senior Managing Director |

---

**Amended and Restated**

**Schedule B**

This Amended and Restated Schedule is attached to and made part of the Securities Lending Authorization Agreement dated the 16th day of February 2017 between each AMERICAN BEACON investment company listed on Schedule B (each, a "Trust"), severally and not jointly, each acting solely on behalf of its series listed on <u>Schedule B</u>, severally and not jointly (a Trust acting on behalf of one of its series, a "Fund," and the Trusts acting on behalf of their respective series, collectively, the "Funds"), and STATE STREET BANK AND TRUST COMPANY acting either directly or through any State Street Affiliates (collectively, "State Street").

**List of Trusts and Funds**

---

| | | | |
|:---|:---|:---|:---|
| **Trust Name and Jurisdiction** | **Fund Name** | **Taxpayer Identification Number** | **Fiscal Year End** |
| American Beacon Funds, a Massachusetts business trust | American Beacon Balanced Fund | 75-2161800 | 31-Oct |
| American Beacon Funds, a Massachusetts business trust | American Beacon Large Cap Value Fund | 75-2161801 | 31-Oct |
| American Beacon Funds, a Massachusetts business trust | American Beacon Small Cap Value Fund | 75-2791825 | 31-Oct |
| American Beacon Funds, a Massachusetts business trust | American Beacon Bridgeway Large Cap Value Fund | 87-0709984 | 31-Dec |
| American Beacon Funds, a Massachusetts business trust | American Beacon Bridgeway Large Cap Growth Fund | 87-0709982 | 31-Dec |
| American Beacon Funds, a Massachusetts business trust | American Beacon Stephens Mid-Cap Growth Fund | 20-3787613 | 31-Dec |
| American Beacon Funds, a Massachusetts business trust | American Beacon Stephens Small Cap Growth Fund | 20-3541234 | 31-Dec |
| American Beacon Funds, a Massachusetts business trust | American Beacon Zebra Small Cap Equity Fund | 27-2501754 | 31-Aug |
| American Beacon Funds, a Massachusetts business trust | American Beacon The London Company Income Equity Fund | 45-4621832 | 31-Aug |
| American Beacon Funds, a Massachusetts business trust | American Beacon International Equity Fund | 75-2401150 | 31-Oct |
| American Beacon Funds, a Massachusetts business trust | American Beacon ARK Transformational Innovation Fund | 81-4595263 | 30-Jun |

---

---

| | | | |
|:---|:---|:---|:---|
| **Trust Name and Jurisdiction** | **Fund Name** | **Taxpayer Identification Number** | **Fiscal Year End** |
| American Beacon Funds, a Massachusetts business trust | American Beacon Shapiro Equity Opportunities Fund | 82-2094363 | 30-Jun |
| American Beacon Funds, a Massachusetts business trust | American Beacon Shapiro SMID Cap Equity Fund | 82-2098235 | 30-Jun |
| American Beacon Institutional Funds Trust, a Delaware business trust | American Beacon Diversified Fund | 81-4879015 | 31-Oct |
| American Beacon Funds, a Massachusetts business trust | American Beacon EAM International Small Cap Fund | 13-3771781 | 31-Oct |

---

## Ex-99.(P)(2)

**Exhibit 99.(p)(2)**

![](img_p1.jpg)

**ARISTOTLE CAPITAL MANAGEMENT, LLC**

**CODE OF ETHICS**

*Updated 10/04/2022*

*Reviewed 10/04/2022*

This Code of Ethics ("Code") is adopted in compliance with the requirements of U.S. securities laws applicable to registered investment advisers and registered investment companies. Registered investment advisers are required by Rule 204A-1 under the Investment Advisers Act of 1940, as amended ("Advisers Act"), to adopt a code of ethics which, among other things, sets forth the standards of business conduct required of their Access Persons, reflects the fiduciary obligations of the Adviser and its Access Persons and requires those Access Persons to comply with the Federal Securities Laws. Similarly, each registered investment company and its adviser and principal underwriter must adopt a code of ethics pursuant to Rule 17j-1 under the Investment Company Act of 1940, as amended ("Company Act"). In conformity with this rule, this Code is adopted by Aristotle Capital Management, LLC ("Aristotle Capital" or the "Adviser"), in its role as investment adviser to separately managed accounts, as a discretionary investment adviser to a private pooled investment vehicles ("Private Fund"), as a discretionary adviser or sub-adviser to registered investment companies ("Mutual Funds"), and as sub- adviser to Collective Investment Trusts (CITs).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Standards of Business Conduct** 

We seek to foster a reputation for integrity and professionalism. That reputation is a vital business asset. The confidence and trust placed in us by our clients, including individual accounts as well as the Private Fund and Mutual Funds (collectively, "Clients") and their investors, is something we value and endeavor to protect. To further that goal, we have adopted this Code and implemented policies and procedures to prevent fraudulent, deceptive and manipulative practices and to ensure compliance with the Federal Securities Laws and the fiduciary duties owed to our Clients.

We are fiduciaries to our Clients. As such, we have affirmative duties of care, honesty, loyalty and good faith to act in the best interests of our Clients. Our Clients' interests are paramount to and come before our personal interests. Our Supervised Persons, as defined in this Code, are also expected to behave as fiduciaries with respect to our Clients. This means that each must render disinterested advice, protect Client assets (including nonpublic information about a Client or a Client's account) and act always in the best interest of our Clients. We must also strive to identify and avoid conflicts of interest, however such conflicts may arise.

Access Persons and Supervised Persons of Aristotle Capital must not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• employ
 any device, scheme or artifice to defraud a Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• make
 to a Client or an investor or prospective investor in any of the Mutual Funds or Private
 Fund managed by Aristotle Capital any untrue statement of a material fact or omit to state
 to a Client or any investor or prospective investor in any of the Mutual Funds or Private
 Fund managed by Aristotle Capital a material fact necessary in order to make the statements
 made, in light of the circumstances under which they are made, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• engage
 in any act, practice, or course of business which operates or would operate as a fraud or
 deceit upon a Client or any investor or prospective investor in any of the Mutual Funds or
 Private Fund managed by Aristotle Capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• engage
 in any manipulative practice with respect to a Client or any investor or prospective investor
 in any of the Mutual Funds or Private Fund managed by Aristotle Capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• use
 their positions, or any investment opportunities presented by virtue of their positions,
 to personal advantage or to the detriment of a Client; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conduct
 personal trading activities in contravention of this Code or applicable legal principles
 or in such a manner as may be inconsistent with the duties owed to Clients as a fiduciary.

To assure compliance with these restrictions and the Federal Securities Laws, as defined in this Code, we have adopted, and agreed to be governed by, the provisions of this Code in addition to the procedures contained in the applicable Compliance Manual and the CFA Institute Code of Ethics and Standards of Professional Conduct.<sup>1</sup>However, Access Persons and Supervised Persons are expected to comply not merely with the "letter of the law", but with the spirit of the laws, this Code and applicable Compliance Manual.

Should you have any doubt as to whether this Code applies to you, you should contact the Chief Compliance Officer (CCO).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Definitions** 

As used in the Code, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***A.*** **Access Persons are any of the Firm's Supervised Persons who:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Has
 access to nonpublic information regarding any clients' purchase or sale of securities,
 or nonpublic information regarding the portfolio holdings of any reportable fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Is
 involved in making securities recommendations to Clients or has access to such recommendations
 that are nonpublic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Is
 a director, officer, or partner of the firm; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Is
 any other person who the CCO determines to be an Access Person.

For purposes of this Code, Aristotle Capital has determined that all full-time employees are Access Persons. The CCO will inform all Access Persons of their status as such and will maintain a list of Access Persons. The *Firm's Access Person list is available upon request.*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***B.*** **Automatic Investment Plan** means any program in which regular periodic purchases (or withdrawals)
 are made automatically in (or from) investment accounts in accordance with a predetermined
 schedule and allocation, including, but not limited to, any dividend reinvestment plan (DRIP).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***C.*** **Beneficial Ownership** generally means having a direct or indirect pecuniary interest in a security
 and is legally defined to be beneficial ownership as used in Rule 16a-1(a)(2) under Section
 16 of the Securities Exchange Act of 1934, as amended ("Exchange Act"). However,
 any transactions or holdings reports required by Section 4.C of this Code may contain a statement
 that the report will not be construed as an admission that the person making the report has
 any direct or indirect beneficial ownership in the security or securities to which the report
 relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***D.*** **Chief Compliance Officer** or **CCO** means the Adviser's Chief Compliance Officer,
 as designated on Form ADV, Part 1, Schedule A, or the CCO's designee, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***E.*** **Covered Associate** as defined by Rule 206(4)-5(Pay to Play rule) means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Any
 general partner, managing member or executive officer, or other individual with a similar
 status or function;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Any
 employee who solicits a government entity for the investment adviser and any person who supervises,
 directly or indirectly, such employee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Any
 political action committee controlled by the investment adviser or by any person described
 in paragraphs (f)(2)(i) and (f)(2)(ii) of this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***F.*** A **Domestic Partner** is an unmarried person who shares common living quarters with an
 employee and lives in a committed, intimate relationship that is not legally defined as marriage
 by the state in which the partners reside.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***G.*** **Federal Securities Laws** means: (1) the Securities Act of 1933, as amended ("Securities
 Act"); (2) the Exchange Act; (3) the Sarbanes-Oxley Act of 2002; (4) the Advisers Act;
 (5) title V of the Gramm-Leach-Bliley Act; (6) any rules adopted by the SEC under the foregoing
 statutes; (8) the Bank Secrecy Act, as it applies to investment advisers; and (9) any rules
 adopted under relevant provisions of the Bank Secrecy Act by the SEC or the Department of
 the Treasury.

<sup>1</sup> Applicable compliance manuals include, among others, the Adviser's policies and procedures adopted pursuant to Advisers Act Rule 206(4)-7. Access Persons and Supervised Persons are required to comply with relevant compliance procedures, whether or not listed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***H.*** **Initial Public Offering** or **IPO** means an offering of securities registered under the Securities
 Act, the issuer of which, immediately before the registration, was not subject to the reporting
 requirements of Exchange Act Sections 13 or 15(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***I.*** **Limited Offering and Private Placements** means an offering that is exempt from registration under
 the Securities Act Sections 4(2) or 4(6) or pursuant to Securities Act Rules 504, 505 or
 506. Limited Offerings of securities issued by Aristotle Capital or any Private Fund are
 included in the term Limited Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***J.*** **Purchase or Sale of a Security** includes, among other things, the writing of an option to purchase
 or sell a security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***K.*** **Reportable Fund** means: (1) any registered investment company advised or sub-advised by Aristotle
 Capital; or (2) any registered investment company whose investment adviser or principal underwriter
 controls, is controlled by or is under common control with any Aristotle Capital entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***L.*** **Reportable Security** means any security as defined in Advisers Act Section 202(a)(18) and Company
 Act Section 2(a)(36) <u>except</u> (1) direct obligations of the Government of the United
 States; (2) bankers' acceptances, bank certificates of deposit, commercial paper and
 high quality short-term debt instruments, including repurchase agreements; (3) shares issued
 by money market funds; (4) shares issued by open-end funds; and (5) shares issued by unit
 investment trusts that are invested exclusively in one or more open-end funds, none of which
 are Reportable Funds. For purposes of this Code, the term Reportable Security, which provides
 a broader exemption than the term "Covered Security",<sup>2</sup>is used for
 compliance with both Rule 204A-1 and Rule 17j-1, except as otherwise noted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***M.*** **Security Held or to be Acquired** means any Reportable Security which, within a (1) day, (i) is
 or has been held by a Client, or (ii) is being or has been considered by a Client or the
 Adviser for purchase by a Client. This definition also includes any option to purchase or
 sell any security convertible into or exchangeable for a Reportable Security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***N.*** **Supervised Person** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Any
 director, officer, or partner of the firm (including any other person of a similar status
 or performing a similar role); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Any
 employee of the firm; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. any
 other persons who provide advice on behalf of the adviser and are subject to the adviser's
 supervision and control; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Any
 other person who the CCO deems to be a Supervised Person.

Contractors and consultants may, in certain circumstances, be deemed to be Supervised Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***O.*** **StarCompliance** is the electronic system which receives and processes reportable personal transactions
 and certifications under this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Compliance with Governing Laws, Regulations and Procedures** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** All
 Access Persons shall comply with all applicable federal and state laws and rules and regulations
 of any governmental agency or self-regulatory organization governing his or her activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** Each
 Access Person, at the time of hire, will receive information on how to access the Code and
 the related procedures therein. Further, each Access Person must complete and submit a statement
 on an annual basis that he or she has reviewed the Code. Each Access Person shall have and
 maintain knowledge of and shall comply with the provisions of this Code and any procedures
 that are subsequently amended or adopted hereunder.

<sup>2</sup> Covered Security under Rule 17j-1 means any security as defined in Company Act Section 2(a)(36) except (1) direct obligations of the Government of the United States; (2) bankers' acceptances, bank certificates of deposit, commercial paper and high quality short-term debt instruments, including repurchase agreements; and (3) shares issued by open-end registered investment companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** All
 Access Persons shall comply with all the laws and regulations concerning insider trading
 and with the Adviser's prohibition against insider trading as specified below under
 Substantive Restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** All
 Access Persons shall comply with limitations on political activity as specified under the
 substantive restrictions below, and shall notify the CCO of any political contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** Any
 Access Person having supervisory responsibility shall exercise reasonable supervision over
 other Access Persons subject to his or her control, with the purpose of preventing any violation
 by such persons of applicable statutes and regulations, or the provisions of this Code adopted
 hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** Any
 Access Person encountering evidence that appears to be a violation of applicable statutes
 or regulations or provisions of this Code shall report such evidence to the CCO or such other
 person as appointed in procedures adopted hereunder. Any such action by the Access Person
 responsible for the reporting shall remain confidential, unless the Access Person waives
 confidentiality or federal or state law or authorities compel disclosure. The failure to
 report such evidence may result in disciplinary proceedings or further action as deemed appropriate
 by the Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Substantive Restrictions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Blackout Period**. No Access Person shall buy or sell a Reportable Security on the same day as any
 trades in the Reportable Security are made for Client accounts unless the Client transaction
 is a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• bringing
 a new Client's account of Reportable Securities in line with the existing accounts
 in the strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an
 immaterial cash flow in a Client's account; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an
 account liquidation related to an account termination request.

A relaxation of, or exemption from, these procedures may only be granted by the CCO after the personal trading request and authorization form has been reviewed. The price paid or received by a Client account for any Reportable Security should not be affected by a buying or selling interest on the part of an Access Person, or otherwise result in an inappropriate advantage to the Access Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** No
 Access Persons may transact in securities issued by a company on the Restricted List for
 which Aristotle Capital is in possession of inside information, unless such purchase or sale
 is approved pursuant to Aristotle Capital's policies and procedures on Insider Trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **IPO and Limited Offering Restrictions**. Access Persons may not acquire any securities issued
 as part of an IPO or a Limited Offering, absent prior CCO approval using the form attached
 as **Exhibit A or through StarCompliance**. Any such approval will take into account,
 among other factors, whether the investment opportunity should be reserved for a Client and
 whether the opportunity is being offered to such person because of his or her position with
 Aristotle Capital. Once pre-approval has been granted, the pre-approved transaction must
 be executed within twenty-four hours. An Access Person who has been authorized to acquire
 such securities must disclose their interests if considering an investment in such securities
 for a Client. Any decision to acquire the issuer's securities on behalf of a Client
 shall be subject to review by Access Persons with no personal interest in the issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Other Trading Restrictions**. Access Persons may not: (1) hold more than 5% of the outstanding
 securities of a single company without the approval of the CCO; or (2) engage in frequent
 trading in securities (e.g., day trading).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Short Swing Profits**. Access Persons may not profit from the purchase and sale or sale and purchase
 of a security within a 15 calendar day period, unless the transaction was authorized by the
 CCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** **Gift Policy**. Access Persons must not give or accept gifts from any entity doing business with
 or on behalf of the Adviser, Private Fund or Mutual Funds in contravention of the Gifts Policy
 outlined below. Gifts of an extraordinary or extravagant nature to an employee should be
 declined or returned in order not to compromise the reputation of the employee or the firm.
 Gifts of nominal value or those that are customary in the industry such as meals or entertainment
 may be appropriate but should first be approved by the CCO. Any form of a loan by an employee
 to a client or by a client to an employee is not allowed as a matter of firm policy and good
 business practice.

Access Persons must report gifts and/or entertainment given or received in excess of $25 to Compliance by completing the Gift Reporting Form, through StarCompliance, attached as **Exhibit H.**

Access Persons must obtain approval from Compliance to give or accept gifts and/or entertainment in excess of $250 (either one single gift, or in aggregate, within one calendar year) to any individual or entity. Access Persons must seek approval by completing the Gift Reporting Form through StarCompliance.

Limits may be lower as required by certain third parties, such as clients or business partners, among others. In such cases, the lower limit will apply. Access Persons must be aware of and shall comply with such lower limits.

A relaxation of, or exemption from, these procedures may only be granted by Compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.** **Political Contributions**. All Access Persons must disclose all political contributions. Political
 contributions by Access Persons are subject to the following limits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) All
 contributions must be reported to the CCO. Contributions in excess of the amounts stated
 below must be pre-approved by the CCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) $350
 in an election in which an Access Person can vote for

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) $150
 in an election in which an Access Person cannot vote

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 CCO may permit higher contribution amounts, depending on the circumstances. The contribution
 must be pre-cleared and reported to Compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Limits
 may be lower as required by state or local law, in such cases the lower requirements will
 apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Exceptions
 to the above approval criteria may be granted only in limited circumstances at the discretion
 of the CCO after examination of the specific facts and circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Contributions
 in excess of the limits above will be evaluated with the consideration of the Covered Associate
 definition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Using
 the firm's name or funds to support political candidates or issues, or elected or appointed
 government officials is prohibited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Please
 refer to the policies and procedures related to political contributions in the adviser's
 Compliance Manual. A Political Contribution Pre-clearance Request Form can be found in **Exhibit G** of this Code's Appendix.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H.** **Conflicts of Interest**. Access Persons must provide disinterested advice and any relevant potential
 personal or business conflicts of interest must be disclosed to the CCO and, where appropriate,
 "Information Wall" procedures may be utilized to avoid potential conflicts of
 interest. Access Persons must avoid engaging in any activity which might reflect poorly upon
 themselves or Aristotle Capital or which would impair their ability to discharge their duties
 with respect to Aristotle Capital and Aristotle Capital's Clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** **Fair Treatment**. Access Persons must avoid taking any action which would favor one Client or
 group of Clients over another in violation of our fiduciary duties and applicable law. Access
 Persons must comply with relevant provisions of our compliance manuals designed to detect,
 prevent or mitigate such conflicts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J.** **Outside Business Activities.** Must be reviewed and approved by Compliance, include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• being
 employed or compensated by any other entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• engaging
 in any other business including part-time, evening or weekend employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• serving
 as an officer, director, partner, etc., in any other entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ownership
 interest in any non-publicly traded company or other private investments; or,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 public speaking or writing activities.

Written approval for any of the above activities is to be obtained by an employee before undertaking any such activity so that a determination may be made that the activities do not interfere with any of the employee's responsibilities at the firm and any conflicts of interests in such activities may be addressed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**K.** **Service as Outside Director, Trustee or Executor**. Access Persons shall not serve on the boards
 of directors of publicly traded companies, or in any similar capacity, absent the prior approval
 of such service by the CCO following the receipt of a written request for such approval attached
 here as **Exhibit I**. In the event such a request is approved, information barrier procedures
 may be utilized to avoid potential conflicts of interest. Other than by virtue of their position
 with Aristotle Capital or with respect to a family member, no Access Person may serve as
 a trustee, executor or fiduciary. Similarly, Access Persons may not serve on a creditor's
 committee. In appropriate circumstances the CCO may grant exemptions from this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**L.** **Forfeitures**.
 If there is a violation of paragraphs A, B, C or D above, the CCO may determine whether any
 profits should be forfeited and may be paid to one or more Clients for the benefit of the
 Client(s). The CCO will determine whether gifts accepted in violation of paragraph E need
 to be forfeited, if practicable, and/or dealt with in any manner determined appropriate and
 in the best interests of our Clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**M.** **Reporting Violations**. Any Supervised Person who believes that a violation of this Code has taken
 place must promptly report that violation to the CCO. To the extent that such reports are
 provided to a designee, the designee shall provide periodic updates to the CCO with respect
 to violations reported. Supervised Persons may make these reports anonymously and no adverse
 action shall be taken against any such person making such a report in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**N.** **Waivers**.
 CCO may grant waivers of any substantive restriction in appropriate circumstances (*e.g*.,
 personal hardship) and will maintain records necessary to justify such waivers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**O.** **Brokerage Accounts**. Access Persons must disclose all brokerage accounts that he/she has direct
 or indirect beneficial ownership or discretionary authority to the CCO and instruct their
 brokers to provide timely duplicate account statements or electronic holdings and transaction
 data (through StarCompliance) to the CCO. Access Persons must submit holdings and transaction
 reports for Reportable Securities and Reportable Funds in which the access person has, or
 acquires, any direct or indirect beneficial ownership. An Access Person is presumed to be
 a beneficial owner of Reportable Securities and/or Reportable Funds that are held by his
 or her immediate family members sharing the Access Person's household and any Domestic
 Partner's accounts.

A sample duplicate account statement and confirmations request letter is included as **Exhibit E**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Pre-clearance and Reporting Procedures** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Pre-clearance**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Each
 Access Person shall obtain prior written approval from the CCO in the form attached as **Exhibit A** (or through similar format, including without limitation through StarCompliance) for
 all personal securities transactions in Reportable Securities and Reportable Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Access
 Persons may not acquire any securities issued as part of an IPO, Limited Offering, private
 placement, or private partnership absent prior approval in the form attached as **Exhibit A** (or through similar format, including without limitation through StarCompliance) of
 the CCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Pre-clearance Exceptions**. Pre-clearance requirements do not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Purchases
 or sales effected in any account over which the Access Person has no direct or indirect influence
 or control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Purchases
 or sales of Reportable Securities which are not eligible for purchase or sale by any Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Purchases
 or sales of open-end funds. Access Persons are reminded that "front- running"
 Client transactions or trading on the basis of material, nonpublic inside or confidential
 information violates not only this Code, but our insider trading policies and procedures
 as well as other securities laws and, if proven, can be punishable by fines and other penalties;<sup>3</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Purchases
 or sales which are non-volitional on the part of either the Access Person or the Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Transactions
 in securities which are not Reportable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Purchases
 which are part of an Automatic Investment Plan or DRIP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Purchases
 effected upon the exercise of rights issued by an issuer *pro rata* to all holders of
 a class of its securities, to the extent such rights were acquired from such issuer, and
 sales of such rights so acquired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Any
 investment grade fixed income securities transaction, or series of related transactions,
 involving 100 units ($100,000 principal amount) or less in the aggregate, if the Access Person
 has no prior knowledge of transactions in such securities on behalf of a Client; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Transactions
 in GNMA securities

Access Persons should consult the CCO if there are any questions about whether one of the exemptions listed above applies to a given transaction. Aristotle Capital may, from time to time and in the sole discretion of the CCO, maintain a "Restricted List" of securities in which Access Persons may not trade.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Required Reports.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **Initial and Annual Holdings Reports**. Each Access Person must submit to the CCO for review the
 Initial Holdings Report (example attached as **Exhibit B** or such other form designated
 by the CCO, including through StarCompliance): (i) not later than ten (10) days after becoming
 an Access Person, reflecting the Access Person's holdings as of a date not more than
 45 days prior to becoming an Access Person; and (ii) annually (attached as **Exhibit C** or
 such other form designated by the CCO, including through StarCompliance), on a date selected
 by the CCO, as of a date not more than 45 days prior to the date the report was submitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Holdings
 Reports must contain the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 title and type of security and as applicable, the exchange ticker symbol or CUSIP number,
 number of shares, and principal amount of each Reportable Security in which the Access Person
 has any direct or indirect beneficial ownership;

<sup>3</sup> Purchases or sales of ETFs are still subject to the Reporting Requirements set forth in Section 4.C., below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 name of any broker, dealer or bank with which the Access Person maintains an account in which
 any securities are held for the Access Person's direct or indirect benefit. (Note that
 even those accounts that hold only non-Reportable Securities must be included); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 date the Access Person submits the report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Brokerage
 statements containing all required information may be substituted for the Holdings Report
 Form if submitted timely. To the extent that a brokerage statement or confirmation lacks
 some of the information otherwise required to be reported, you may submit a holdings report
 containing the missing information as a supplement to the statement or confirmation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) **Quarterly Reports**. Within 30 days after the end of each calendar quarter, each Access Person must
 submit a report to the CCO for review covering all transactions within the quarter in non-excepted
 Reportable Securities in the form attached as **Exhibit D** or such other form designated
 by the CCO, including through StarCompliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Transactions
 reports must contain the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 date of the transaction, the title and, as applicable, the exchange, ticker symbol or CUSIP
 number, interest rate and maturity date, number of shares, and principal amount of each Reportable
 Security involved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 nature of the transaction (*i.e.*, purchase, sale or any other type of acquisition or
 disposition);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 price of the security at which the transaction was effected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 name of the broker, dealer or bank with or through which the transaction was effected; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 date the Access Person submits the report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Brokerage
 account statements or electronic holdings and transaction data (through StarCompliance) containing
 all required information may be substituted for the attached form if submitted timely. To
 the extent that a brokerage statement or confirmation lacks some of the information otherwise
 required to be reported, you may submit a transactions report containing the missing information
 as a supplement to the statement or confirmation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Exceptions to Reporting Requirements**. The reporting requirements of Section 5.C. apply to all transactions
 in Reportable Securities other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) transactions
 with respect to securities held in accounts over which the Access Person had no direct or
 indirect influence or control; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) transactions
 effected pursuant to an Automatic Investment Plan or DRIP.

In the event the discretion over the account changes such that the Access Person has direct or indirect influence or control, the Access Person must promptly report to the CCO and begin providing quarterly account statements. An Access Person will generally be deemed to have direct or indirect influence or control over any account in which he or she:

1) Directs the purchases and/or sales of investments;

2) Suggests purchases and/or sales of investments to the trustee or third-party discretionary manager; or

3) Consults with a trustee or third-party discretionary manager as to the particular allocation of investments to be made in the account and the manager acts upon such consultation.

Please note that granting a third-party discretionary investment authority over an account does not, by itself, exempt an account from the reporting requirements. Similarly, trusts over which an Access Person is the grantor or beneficiary may also be subject to the reporting requirements, regardless of whether a trustee has management authority.

Aristotle Capital will conduct additional due diligence to determine whether an Access Person may have any direct or indirect influence or control over the investment decisions of such accounts, which may include:

1) Evaluating the relationship between the Access Person and the person managing the account;

2) Requesting completion of periodic certifications by the Access Person or third party managers regarding the Access Person's influence over the account;

3) Requesting periodic completion of holdings or transaction reports to identify transactions that would have been prohibited pursuant to this Code, absent reliance on the reporting exemption; or

4) Periodically request statements for accounts managed by third-parties where there is no identified direct or indirect influence or control over the investment decisions in an account.

If an Access Person is unsure as to whether an account is qualified for the exemption, he/she should consult with the CCO. In the event it is determined that the Access Person may have direct or indirect influence or control over investment decisions, the Access Person will be required to pre-clear trades for all Reportable Securities and Reportable Funds in the account as well as provide account statements as required with any reportable account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Duplicate Statements and Trade Confirmations**. Each Access Person, with respect to each brokerage
 account in which such Access Person has any direct or indirect beneficial interest, may choose
 to arrange that the broker shall mail directly to the CCO at the same time they are mailed
 or furnished to such Access Person (1) duplicate copies of broker trade confirmations covering
 each transaction in a Reportable Security and each Reportable Fund in such account and (2)
 copies of periodic statements with respect to the account, provided, however, that such duplicate
 copies need not be filed for transactions involving Non-Reportable Securities. This requirement
 also may be waived by the CCO in situations when the CCO determines that duplicate copies
 are unnecessary. A sample duplicate account statement and confirmation request letter is
 attached here at **Exhibit E.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** **Prohibition on Self Pre-clearance**. No Access Person shall pre-clear his/her own trades, review their
 own reports or approve their own exemptions from this Code. When such actions are to be undertaken
 with respect to a personal transaction of the CCO, the President, Chief Executive Officer **,** Chief Investment Officer, Chief Risk Officer or other senior compliance person will perform
 such actions as are required of the CCO by this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Code Notification and Access Person Certifications** 

The CCO shall provide notice to all Access Persons of their status under this Code, and shall deliver a copy of the Code to each Access Person annually. Additionally, each Access Person will be provided a copy of any Code amendments. After reading the Code or amendment and the CFA Institute Code of Ethics, each Access Person shall make the certification contained in **Exhibit F** or such other form designated by the CCO, including through StarCompliance. Annual certifications are due within 45 days after the end of each calendar year. Certifications with respect to amendments to the Code must be returned to the CCO within a reasonably prompt time. To the extent that any Code related training sessions or seminars are held, the CCO shall keep records of such sessions and the Access Persons attending. (A copy of the CFA Institute Code of Ethics and Standards of Professional Conduct is included in **Exhibit J.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Review of Required Code Reports** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** Reports
 required to be submitted pursuant to the Code will be reviewed by the CCO on a periodic basis.

---

| | |
|:---|:---|
| **<sup>B.</sup>** | Any material violation or potential material violation of the Code must be promptly reported to the CCO. The CCO will investigate any such violation or potential violation and report violations the CCO determines to be "material" to the President and/or the Board, as appropriate, with a recommendation of such action to be taken against any individual who is determined to have violated the Code, as is necessary and appropriate to cure the violation and prevent future violations. Other violations shall be handled by the CCO in a manner the CCO deems to be appropriate. However, sanctions more severe than a warning or censure must be approved by the President or the Board, as applicable.<sup>4</sup> |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** The
 CCO will keep a written record of all investigations in connection with any Code violations
 including any action taken as a result of the violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** Sanctions
 for violations of the Code include: verbal or written warnings and censures, monetary sanctions,
 disgorgement or dismissal. Where a particular Client has been harmed by the action, disgorgement
 may be paid directly to the Client; otherwise, monetary sanctions shall be paid to an appropriate
 charity determined by the President or CCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Recordkeeping and Review** 

This Code, a record of all certifications of an Access Person's receipt of the Code or any amendments thereto, any written prior approval for a Reportable Securities transaction given pursuant to Section 5.A. of the Code, a copy of each report by an Access Person, a record of any violation of the Code and any action taken as a result of the violation, any written report hereunder by the CCO, and lists of all persons required to make and/or review reports under the Code shall be preserved with the Adviser's records, for the periods and in the manner required by Advisers Act Rule 204-2. To the extent appropriate and permissible, the CCO may choose to keep such records electronically.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Review of Code** 

The CCO shall review this Code and its operation annually and may determine to make amendments to the Code as a result of that review. Material and non-material amendments to this Code should be made and distributed as described in Section 6. Code Notifications and Access Person Certifications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Disciplinary Actions**. Any violation of this Code, for any reason or any degree of severity (whether
 or not the Access Person intended to violate the Code), may be grounds for disciplinary action,
 including dismissal.

The Adviser may take one or more of the following disciplinary actions including but not limited to: issuing a letter of instruction; requiring a meeting with the CCO; issuing a violation report; issuing a letter of reprimand; requiring disgorgement of profits; requiring trade(s) to be broken at the Access Person's expense; requiring corrective action, suspension, or dismissal and the reporting of the violation to the appropriate regulatory authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Procedural Non-compliance**. Non-compliance with the procedural requirements of this Code (i.e. failure
 to submit holdings reports in a timely manner) will be documented. Repeated failure to disclose
 or repeated non-compliance (i.e. three similar failures to comply in one year) will be considered
 a violation and may result in disciplinary action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Violations of Trading Non-compliance.** Failure to comply, whether intentional or not, with the pre-clearance
 requirements and/or substantive prohibitions of this Code with respect to trading activity
 may result in disciplinary action as identified above in Section 9.A. Additionally, if a
 violation occurs which creates an actual conflict of interest with a Client account, the
 Adviser reserves the right to treat such violation as one that warrants disciplinary action.

<sup>4</sup> To the extent that the President also serves as CCO, no such report or approval will be required.

**<u>EXHIBIT A</u>**

**Sample Personal Trading Request and Authorization Form**

![](img_p2.jpg)

**<u>EXHIBIT B</u>**

**Sample Initial Compliance Attestation**

**This form must be completed and submitted within 10 days of becoming an Access Person. The due date is listed on the certification request alert and your StarCompliance Homepage. Please ensure all broker accounts, private investments, and political contributions are included. If not, such information should be added via the appropriate request tab or notify a member of the Compliance team to disclose. Any technical questions should be sent to <u>aristotle@fairviewinvest.com</u> or <u>starcompliance@aristotlecap.com</u>**

**<u>INITIAL COMPLIANCE CERTIFICATION</u>**

**Initial Code of Ethics Receipt**

**The below links provide access to the Code of Ethics ("Code"). Please select the link, open the document and review the current version of the Code. Once completed, please attest that you have read and understand the Code.**

**Please note, once you have clicked on the below link, a new window should open where you can access the Code. Once you have reviewed the document, you can close that window and return to this certification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC - <u>Code of Ethics</u>** 

**I hereby acknowledge receipt of the current Code, including any applicable amendments. I hereby certify that I** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Recently have read/re-read the Code (including any amendments thereto);** 

• **Understand the Code; and** 

• **Recognize that I am subject to its provisions.** 

**I also hereby certify that I have complied with and will continue to comply with the requirements of the Code and that I have disclosed or reported all personal securities transactions required to be disclosed or reported pursuant to the Code. Moreover, I agree to promptly report to the Chief Compliance Officer any violation or possible violation of the Code of which I become aware. I understand that violation of the Code will be grounds for disciplinary action or dismissal and may also be a violation of federal and/or state securities laws.**

**\*** **Printed Electronic Signature**

**Initial Compliance Manual Receipt**

**The below links provide access to the Compliance Manual for each entity where you have reporting requirements. Please select each link, open the document and review the version of the respective Manual. Once completed, please attest that you have read and understand each Manual.**

**Please note, once you have clicked on the appropriate Manual(s), a new window should open where you can access each Manual. Once you have reviewed the Manual, you can close that window and return to this certification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC - <u>Compliance Manual</u>** 

Page 1 (of 6)

**I hereby acknowledge receipt of the current Compliance Manual(s), including any applicable amendments. I hereby certify that I** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Recently have read/re-read the Compliance Manual(s) (including any amendments thereto);** 

• **Understand the Compliance Manual(s); and** 

• **Recognize that I am subject to its provisions.** 

**I also hereby certify that I have complied with and will continue to comply with the requirements of the Compliance Manual(s) and that I have disclosed or reported all personal securities transactions required to be disclosed or reported pursuant to the Compliance Manual(s). Moreover, I agree to promptly report to the Chief Compliance Officer or designee any violation or possible violation of the Compliance Manual(s) of which I become aware. I understand that violation of the Compliance Manual(s) will be grounds for disciplinary action or dismissal and may also be a violation of federal and/or state securities laws.**

**\*** **Printed Electronic Signature**

**Initial Holdings / Broker Accounts Report** 

**Account types are defined as:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  **<u>REPORTABLE ACCOUNTS</u>: A reportable account is one in which you, or an immediate family member, effects or directs the trading of reportable securities, such as stocks, ETFs and mutual funds advised or sub-advised by Aristotle.** 

•  **<u>DISCRETIONARY ACCOUNTS</u>: A discretionary account is one in which you, or an immediate family member, has delegated control over the account to an outside manager, including managed accounts and trusts. Statements are required for discretionary accounts when you or an immediate family member exercises direct or indirect control over the account. Generally, an access person, or his or her immediate family, will be deemed to have direct or indirect control over any account in which he or she: (a) directs the purchase or sales of investments; (b) suggests purchases or sales of investments to the trustee or third-party discretionary manager; or (c) consults with a trustee or third-party discretionary manager as to the particular allocation of investments to be made in the account and the manager acts upon such consultation. An additional form must be completed for discretionary accounts.** 

•  **<u>NON-REPORTABLE ACCOUNTS</u>: Non-reportable accounts include: (1) accounts that cannot hold any other type of security except mutual funds (unless they are Aristotle advised or sub-advised mutual funds); (2) 529 savings accounts; and (3) insurance policies or annuities where neither you nor any immediate family member has the ability to exercise direct or indirect control.** 

**\*** **Do you, or an immediate family member, have direct or indirect beneficial ownership in any investment accounts? For purposes of this report, "immediate family member" shall include an access person's: (a) Spouse or domestic partner; (b) Children under the age of 18; and (c) Any relative residing in the same household as the access person.**

&nbsp;&nbsp;&nbsp;&nbsp;○ Yes

&nbsp;&nbsp;&nbsp;&nbsp;○ No

**Initial Private Investments or Limited Offerings Report**

**In compliance with the Firm's Compliance Manual, all Private Investments and/or Limited Offerings must be reported to the Firm. If you have Private Investments or Limited Offerings, please select 'Yes' for the following question. Additionally, by attesting to this certification with a printed electronic signature, you are certifying that you have accurately reported all Private Investments and/or Limited Offerings in which you or an immediate family member has a beneficial interest. In the event additional Private Investments or Limited Offerings need to be reported, please contact your Chief Compliance Officer.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  **<u>PRIVATE INVESTMENTS AND/OR LIMITED OFFERINGS</u>: A Private Investment or Limited Offering means an offering that is exempt from registration under the Securities Act of 1933, such as an investment in a limited partnership or limited liability company.** 

**\*** **Per above description, do you or an immediate family member have any beneficial interest in a Private Investment and/or Limited Offering?**

Page 2 (of 6)

&nbsp;&nbsp;&nbsp;&nbsp;○ Yes

&nbsp;&nbsp;&nbsp;&nbsp;○ No

**I hereby certfiy that the Private Investments and/or Limited Offerings reported above constitute all the Private Investments and/or Limited Offerings in which I (or an immediate family member) have a direct or indirect beneficial interest as required to be reported by the Firm's Compliance Manual and Code of Ethics. I also confirm that if any changes have been made to my Private Investments and/or Limited Offerings, I will disclose those changes accordingly to the Firm's compliance team.**

**The following Printed Electronic Signature attestation will serve as certification for each entity listed below:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC** 

**\*** **Printed Electronic Signature**

**Cybersecurity Policy Attestation**

**The below links provide access to the Cybersecurity Policies & Procedures (the "Cybersecurity Policies"). Please select the link, open the document and review the current version of the Cybersecurity Policy. Once completed, please attest that you have read and understand the Cybersecurity Policies.**

**Please note, once you have clicked on the below link, a new window should open where you can access the Cybersecurity Policies. Once you have reviewed the document, you can close that window and return to this certification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  **<u>Aristotle Cybersecurity Policies and Procedures</u>** 

**I hereby acknowledge receipt of the current Cybersecurity Policies including any applicable amendments. I hereby certify that I**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Recently have read/re-read the Cybersecurity Policies including any amendments thereto;** 

• **Understand the Cybersecurity Policies;** 

• **Recognize that I am subject to its provisions as an access person and by the access and use of the Firm's computer systems and network; and** 

• **I have complied with and will continue to comply with the requirements of the Cybersecurity Policies. Moreover, I agree to promptly report to my supervisor or a member Computer Incident Response Team any violation or possible violation of the Cybersecurity Policies, including but not limited to the compromise of any network password, any known threats to the network and any jeopardized or actual loss of company data, including client information. I understand that violation of the Cybersecurity Policies will be grounds for disciplinary action or potential dismissal and may also be a violation of federal and/or state securities laws.** 

**The following Printed Electronic Signature attestation will serve as certification for each entity listed below:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC** 

**\*** **Printed Electronic Signature**

Page 3 (of 6)

**Insider Trading Attestation**

**The undersigned access person hereby certifies that the he/she has received, read and understands the policies and procedures set forth in the current Compliance Manual regarding insider trading and the handling of material, non-public information. The undersigned understands that there are several ways he/she may receive material, non-public information and that this information must not be disclosed to anyone or used for personal gain or the gain of others. The following are examples, and are not meant to be an inclusive list of potential sources of material, non-public information:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Business relationships (such as analysts/brokers);** 

• **Social networks, including online;** 

• **Living arrangements (such as roommates or close neighbors);** 

• **Business networks (such as trade associations, professional associations) or** 

• **Family members.** 

**The undersigned should immediately alert the CCO if he/she believes he/she has come into possession of material, non-public information or if he/she has a concern that a business or personal relationship or arrangement could result in the receipt of material, non-public information.**

**I hereby certify that I have complied with and will continue to comply with the Insider Trading policies and procedures set forth in the Firm's Compliance Manual.** 

**The following Printed Electronic Signature attestation will serve as certification for each entity listed below:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC** 

**\*** **Printed Electronic Signature**

**Outside Business Activity Report**

**Any employment or other outside activity by an employee may result in possible conflicts of interests for the employee or for the Firm and therefore should be reviewed and approved by the CCO or designee. Employees are generally not allowed to serve on the board of directors of any publicly traded companies absent the prior authorization of the CCO or designee. Other outside activities, which must be reviewed and approved, include:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Being employed or compensated by any other entity;** 

• **Engaging in any other business including part-time, evening or weekend employment;** 

• **Serving as an officer, director, partner, etc., in any other entity;** 

• **Ownership interest in any non-publicly traded company or other private investments; or,** 

• **Any public speaking or writing activities.** 

Page 4 (of 6)

**Written approval for any of the above activities is to be obtained by an employee before undertaking any such activity so that a determination may be made that the activities do not interfere with any of the employee's responsibilities at the Firm and any conflicts of interests in such activities may be addressed. An employee seeking approval shall provide the following information to the CCO or designee:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **The name and address of the outside business organization;** 

• **A description of the business of the organization;** 

• **Compensation, if any, to be received;** 

• **A description of the activities to be performed; and** 

• **The amount of time per month that will be spent on the outside activity. Because employee involvement in charitable, non-public organization, civic and trade association activities is encouraged, such outside activities will generally be approved unless a clear conflict of interest exists. Employees must update annually any requests for approval of an outside activity.** 

**Outside Business Activity Attestation**

**\*** **Do you participate, engage, and/or serve in any activities outside our firm?**

&nbsp;&nbsp;&nbsp;&nbsp;○ Yes

&nbsp;&nbsp;&nbsp;&nbsp;○ No

**I hereby certify that I have accurately disclosed all Outside Activities as required to be reported by the Firm's Code of Ethics. I also certify that if any changes have been made to my Outside Business Activities, I will disclose those changes accordingly to the Firm's compliance team.**

**The following Printed Electronic Signature attestation will serve as certification for each entity listed below:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC** 

**\*** **Printed Electronic Signature**

**Political Contribution Report**

**You are permitted to pursue legitimate political activities and to make political contributions to the extent permitted under U.S. law. However, you are prohibited from making contributions to U.S. state or local officials or candidates for state or local office if those contributions are intended to influence the award or retention of municipal finance business or any other business.**

**As a covered person of Aristotle you are generally permitted to contribute:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **up to $350 to an official per election (with primary and general elections counting separately), if you are entitled to vote for the official at the time of the contribution, and;** 

• **up to $150 to an official per election (with primary and general elections counting separately), if you are not entitled to vote for the official at the time of the contribution.** 

Page 5 (of 6)

**You may not circumvent these rules by having your spouse or other member of your household make a contribution on your behalf. For new employees, please disclose any political contributions made within the last two years of new hire date.**

**IMPORTANT INFORMATION: Do not make the political contribution unless you are advised that the pre-clearance has been approved. You may not circumvent these rules by having your spouse or other member of your household make a contribution on your behalf.**

**\*** **Please select one of the options that accurately describes your political contributions listed above.**

&nbsp;&nbsp;&nbsp;&nbsp;○ I
 have made political contributions in the last 2 years

&nbsp;&nbsp;&nbsp;&nbsp;○ I
 have not made anypolitical contributions within the last 2 years

**Social Media Attestation**

**\*** **As applicable, please indicate whether or not you use Social Media for business related purposes:**

&nbsp;&nbsp;&nbsp;&nbsp;○ I
 do not use Social Media for business related purposes.

&nbsp;&nbsp;&nbsp;&nbsp;○ I
 use Social Media for Aristotle business related purposes and mybusiness activities on behalf
 of the Firm using Social Media are according to the policies and procedures as set forth
 in the Firm's Compliance Manual. I agree to have my Social Media account reviewed and
 archived for compliance review purposes.

**I hereby certify that I have complied with and will continue to comply with the Social Media policies and procedures set forth in the Firm's Compliance Manual.** 

**The following Printed Electronic Signature attestation will serve as certification for each entity listed below:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC** 

**\*** **Printed Electronic Signature**

**Privacy Policy Attestation**

**I hereby certify that I have read and understand the Privacy Policy in its entirety and will comply with its requirements.** 

**The following Printed Electronic Signature attestation will serve as certification for each entity listed below:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC** 

**\*** **Printed Electronic Signature**

Page 6 (of 6)

**<u>EXHIBIT C</u>**

**Sample Annual Compliance Attestation**

**This form must be completed and submitted by the due date listed on the Certification Request Alert as well as the Outstanding Certifications List. Please ensure all broker accounts, private investments, and political contributions are included. If not, such information should be added via the appropriate request tab or notify a member of the Compliance team to disclose. Any technical questions should be sent to <u>aristotle@fairviewinvest.com</u> or <u>starcompliance@aristotlecap.com</u>**

**<u>ANNUAL COMPLIANCE CERTIFICATIONS</u>**

**Code of Ethics Receipt**

**The below links provide access to the Code of Ethics ("Code"). Please select the link, open the document and review the current version of the Code. Once completed, please attest that you have read and understand the Code.**

**Please note, once you have clicked on the below link, a new window should open where you can access the Code. Once you have reviewed the document, you can close that window and return to this certification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC - <u>Code of Ethics</u>** 

**I hereby acknowledge receipt of the current Code, including any applicable amendments. I hereby certify that I** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Recently have read/re-read the Code (including any amendments thereto);** 

• **Understand the Code; and** 

• **Recognize that I am subject to its provisions.** 

**I also hereby certify that I have complied with and will continue to comply with the requirements of the Code and that I have disclosed or reported all personal securities transactions required to be disclosed or reported pursuant to the Code. Moreover, I agree to promptly report to the Chief Compliance Officer any violation or possible violation of the Code of which I become aware. I understand that violation of the Code will be grounds for disciplinary action or dismissal and may also be a violation of federal and/or state securities laws.**

**\*** **Printed Electronic Signature**

**Compliance Manual Receipt**

**The below links provide access to the Compliance Manual(s) for each entity where you have reporting requirements. Please select each link, open the document, and review the updated version of the respective Manual. Once completed, please attest that you have read and understand each Manual.**

**Please note, once you have clicked on the appropriate Manual(s), a new window should open where you can access each Manual. Once you have reviewed the Manual, you can close that window and return to this certification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC - <u>Compliance Manual</u>** 

Page 1 (of 4)

**I hereby acknowledge receipt of the current Compliance Manual(s), including any applicable amendments. I hereby certify that I** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Recently have read/re-read the Compliance Manual(s) (including any amendments thereto);** 

• **Understand the Compliance Manual(s); and** 

• **Recognize that I am subject to its provisions.** 

**I also hereby certify that I have complied with and will continue to comply with the requirements of the Compliance Manual(s) and that I have disclosed or reported all personal securities transactions required to be disclosed or reported pursuant to the Compliance Manual(s). Moreover, I agree to promptly report to the Chief Compliance Officer or designee any violation or possible violation of the Compliance Manual(s) of which I become aware. I understand that violation of the Compliance Manual(s) will be grounds for disciplinary action or dismissal and may also be a violation of federal and/or state securities laws.**

**\*** **Printed Electronic Signature**

**Accounts**

You do not currently have anybroker accounts to display.

**Private Investments**

**Included below is a list of Private Investments you hold at the end of this period**

No Investments

**Annual Holdings Attestation**

**This Certification includes all of the accounts you have reported to date. If there are any other accounts not listed below that are held for the direct or indirect benefit of you or an immediate family member, as of the reporting period, please attach the account statement to this Certification in the section below.**

**For purposes of this report, "immediate family member" shall include an access person's:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Spouse or domestic partner;** 

• **Children under the age of 18; and** 

• **Any relative residing in the same household as the access person.** 

**By signing this Certification, you are certifying that the accounts listed below constitute all the accounts in which you (or an immediate family member) have a direct or indirect beneficial interest and in the event StarCompliance is not receiving an electronic feed for your broker accounts, you have arranged to have account statements uploaded to StarCompliance or are providing documentation of your reportable transactions and year-end holdings.**

**Account statements containing all required information may be used to comply with the Firm's requirements for personal securities reporting if submitted timely. To the extent that an account statement lacks some of the information otherwise required to be reported, a year-end holdings and annual transaction report containing the missing information may be attached as a supplement to the statement.**

**I hereby certfiy that the accounts listed above constitute all the accounts in which I (or an immediate family member) have a direct or indirect beneficial interest as required to be reported by the Firm's Compliance Manual and Code of Ethics. I also confirm that if any changes have been made to my accounts, I will disclose those changes accordingly to the Firm's compliance team.**

**The following Printed Electronic Signature attestation will serve as certification for each entity listed below:**

Page 2 (of 4)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC** 

**\*** **Printed Electronic Signature**

**Social Media Attestation**

**\*** **As applicable, please indicate whether or not you use Social Media for business related purposes:**

&nbsp;&nbsp;&nbsp;&nbsp;○ I
 do not use Social Media for business related purposes.

○ I
 use Social Media for Aristotle business related purposes and mybusiness activities on behalf of the Firm using Social Media are according
 to the policies and procedures as set forth in the Firm's Compliance Manual. I agree to have my Social Media account reviewed
 and archived for compliance review purposes.

**I hereby certify that I have complied with and will continue to comply with the Social Media policies and procedures set forth in the Firm's Compliance Manual.** 

**The following Printed Electronic Signature attestation will serve as certification for each entity listed below:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC** 

**\*** **Printed Electronic Signature**

**Privacy Policy Attestation**

**I hereby certify that I have read and understand the Privacy Policy in its entirety and will comply with its requirements.** 

**The following Printed Electronic Signature attestation will serve as certification for each entity listed below:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC** 

**\*** **Printed Electronic Signature**

Page 3 (of 4)

**Insider Trading Attestation**

**The undersigned access person hereby certifies that the he/she has received, read and understands the policies and procedures set forth in the current Compliance Manual regarding insider trading and the handling of material, non-public information. The undersigned understands that there are several ways he/she may receive material, non-public information and that this information must not be disclosed to anyone or used for personal gain or the gain of others. The following are examples, and are not meant to be an inclusive list of potential sources of material, non-public information:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Business relationships (such as analysts/brokers);** 

• **Social networks, including online;** 

• **Living arrangements (such as roommates or close neighbors);** 

• **Business networks (such as trade associations, professional associations) or** 

• **Family members.** 

**The undersigned should immediately alert the CCO if he/she believes he/she has come into possession of material, non-public information or if he/she has a concern that a business or personal relationship or arrangement could result in the receipt of material, non-public information.**

**I hereby certify that I have complied with and will continue to comply with the Insider Trading policies and procedures set forth in the Firm's Compliance Manual.** 

**The following Printed Electronic Signature attestation will serve as certification for each entity listed below:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC** 

**\*** **Printed Electronic Signature**

**CyberSecurity Policy Attestation**

**The below links provide access to the Cybersecurity Policies & Procedures. Please select the link, open the document and review the current version of the Cybersecurity Policy. Once completed, please attest that you have read and understand the Cybersecurity Policies & Procedures.**

**Please note, once you have clicked on the below link, a new window should open where you can access the Cybersecurity Policies & Procedures. Once you have reviewed the document, you can close that window and return to this certification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  **<u>Aristotle Cybersecurity Policies and Procedures</u>** 

**I hereby acknowledge receipt of the current Cybersecurity Policies & Procedures including any applicable amendments. I hereby certify that I** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Recently have read/re-read the Cybersecurity Policies & Procedures (the "Cybersecurity Policies") including any amendments thereto;** 

• **Understand the Cybersecurity Policies;** 

• **Recognize that I am subject to its provisions as an access person and by the access and use of the Firm's computer systems and network; and** 

• **I have complied with and will continue to comply with the requirements of the Cybersecurity Policies. Moreover, I agree to promptly report to my supervisor or a member Computer Incident Response Team any violation or possible violation of the Cybersecurity Policies, including but not limited to the compromise of any network password, any known threats to the network and any jeopardized or actual loss of company data, including client information. I understand that violation of the Cybersecurity Policies will be grounds for disciplinary action or potential dismissal and may also be a violation of federal and/or state securities laws.** 

**The following Printed Electronic Signature attestation will serve as certification for each entity listed below:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC** 

**\*** **Printed Electronic Signature**

Page 4 (of 4)

**<u>EXHIBIT D</u>**

**Sample Quarterly Compliance Attestation**

**This form must be completed and submitted by the due date listed on the Certification Request Alert as well as the Outstanding Certifications List. Please ensure all broker accounts, private investments, political contributions and gifts are included. If not, such information should be added via the appropriate request tab or notify a member of the Compliance team to disclose. Any technical questions should be sent to <u>aristotle@fairviewinvest.com</u> or <u>starcompliance@aristotlecap.com</u>**

**<u>QUARTERLY CODE OF ETHICS CERTIFICATION</u>**

**Account Type Definitions**

**This Certification includes all of the accounts you have reported to date. If there are any other accounts not listed below that are held for the direct or indirect benefit of you or an immediate family member, as of the quarter end, please attach the account statement to this Certification in the section below.**

**For purposes of this report, "immediate family member" shall include an access person's:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **(a) spouse or domestic partner;** 

• **(b) children under the age of 18; and** 

• **(c) any relative residing in the same household as the access person.** 

**By signing this Certification, you are certifying that the accounts listed below constitute all the accounts in which you (or an immediate family member) have a direct or indirect beneficial interest and in the event StarCompliance is not receiving an electronic feed for your broker accounts, you have arranged to have account statements uploaded to StarCompliance or are providing documentation of your reportable quarterly transactions.**

**Account statements containing all required information will be used to comply with the Firm's requirements for personal securities reporting and should be submitted timely. To the extent that an account statement lacks some of the information otherwise required to be reported, a transaction report containing the missing information may be submitted as a supplement to the statement.**

**Account types are defined as:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  **<u>REPORTABLE ACCOUNTS</u>: A reportable account is one in which you, or an immediate family member, effects or directs the trading of reportable securities, such as stock, ETFs and mutual funds advised or sub-advised by Aristotle.** 

•  **<u>DISCRETIONARY ACCOUNTS:</u> A Discretionary Account is one in which you, or an immediate family member, have delegated control over the account to an outside manager, including managed accounts and trusts. Statements are required for Discretionary Accounts when you or an immediate family member exercises direct or indirect control over the account. Generally, an access person, or his or her immediate family, will be deemed to have direct or indirect control over any account in which he or she: (a) directs the purchase or sales of investments; (b) suggests purchases or sales of investments to the trustee or third-party discretionary manager; or (c) consults with a trustee or third-party discretionary manager as to the particular allocation of investments to be made in the account and the manager acts upon such consultation. An additional form must be completed for Discretionary Accounts.** 

•  **<u>NON-REPORTABLE ACCOUNTS</u>: Non-reportable accounts include: (1) accounts that cannot hold any other type of security except mutual funds (unless they are Aristotle advised or sub-advised mutual funds); (2) 529 savings accounts; and (3) insurance policies or annuities where neither you nor any immediate family member have the ability to exercise direct or indirect control.** 

**Accounts**

You do not currently have anybroker accounts to display.

Page 1 (of 4)

**Quarterly Account Attestation**

**\*** **Per the account type definitions, please select one of the below options that accurately describes your account(s) listed above.**

&nbsp;&nbsp;&nbsp;&nbsp;○ The
 accounts are reported accurately

&nbsp;&nbsp;&nbsp;&nbsp;○ One
 or more of the accounts are reported inaccurately

&nbsp;&nbsp;&nbsp;&nbsp;○ I
 do not have anyaccounts

**\*** **Did you open or close any accounts during the quarter?**

&nbsp;&nbsp;&nbsp;&nbsp;○ Yes

&nbsp;&nbsp;&nbsp;&nbsp;○ No

**\*** **Please provide additional details on the account(s) that were opened or closed.**

**\*** **Please only consider answering "Yes" to the next question if you currently have a discretionary account. A discretionary account is one in which you, or an immediate family member, have delegated control over the account to an outside manager, including managed accounts and trusts. If you respond "Yes" provide details in the space provided below.**

**Did you or an immediate family member directly or indirectly exercise influence or control over any transactions that occurred in your Discretionary Account(s) during this quarter?**

&nbsp;&nbsp;&nbsp;&nbsp;○ Yes

&nbsp;&nbsp;&nbsp;&nbsp;○ No

**\*** **Please provide additional details about providing influence or control of security transactions within your Discretionary Account(s).**

**Private Investments**

**Included below is a list of Private Investments you hold at the end of this period**

No Investments

**Private Investment Attestation**

**\*** **As defined in the Firm's Code of Ethics, please select one of the options that accurately describes your Private Investments listed above.**

&nbsp;&nbsp;&nbsp;&nbsp;○ The
 Private Investments are reported correctly

&nbsp;&nbsp;&nbsp;&nbsp;○ One
 or more of the Private Investments are reported incorrectly or missing

&nbsp;&nbsp;&nbsp;&nbsp;○ I
 do not have any Private Investments

Page 2 (of 4)

**Outside Activities**

**Positions Outside Of Company**

No Outside Activity Declarations for this period.

**Access Person Officer/Director Positions Outside Of Principal Firm**

No Outside Activity Declarations for this period.

**Significant Ownership**

No Outside Activity Declarations for this period.

**Outside Activity Attestation**

**\*** **I understand that, prior to accepting a board position on any publicly traded company, I must obtain preclearance from the CCO. As defined in the Firm's Code of Ethics, please select one of the options that accurately describes your Outside Business Activity listed above.**

&nbsp;&nbsp;&nbsp;&nbsp;○ I
 have disclosed all outside business activities

&nbsp;&nbsp;&nbsp;&nbsp;○ One
 or more outside business activities needs to be disclosed

&nbsp;&nbsp;&nbsp;&nbsp;○ I
 do not have anyoutside business activities

**Political Activities**

**Quarterly Combined Report**

**Employee Name:** ACMReview **Office:** ACM- Los Angeles, CA

**Period:** Quarterly Code of Ethics Report for Q1/2022

**Line Of Business:** Aristotle Capital Management, LLC

**Included below is a list of donations you have reported to political entities during this period**

No Political Activity Donations for this period.

**Included below is a list of donations you have reported to public officials during this period**

No Political Activity Donations for this period.

**Political Activities Attestation**

**\*** **As defined in the Firm's Code of Ethics, please indicate if you made any political contributions during the quarter.**

&nbsp;&nbsp;&nbsp;&nbsp;○ I
 made a political contribution during the quarter

&nbsp;&nbsp;&nbsp;&nbsp;○ I
 have not made anypolitical contributions during the quarter

Page 3 (of 4)

**\*** **Please provide commentary on any new political contributions.**

**Gifts**

You do not currently have anygift declarations to display.

**Gifts Attestation**

**\*** **As defined in the firm's Code of Ethics, please select one of the options that accurately describes your gifts listed above.**

&nbsp;&nbsp;&nbsp;&nbsp;○ The
 gifts are reported correctly

&nbsp;&nbsp;&nbsp;&nbsp;○ One
 or more of the gifts are reported incorrectly

&nbsp;&nbsp;&nbsp;&nbsp;○ I
 have not given or received anygifts

**\*** **In the table above, are any gifts missing?**

&nbsp;&nbsp;&nbsp;&nbsp;○ Yes

&nbsp;&nbsp;&nbsp;&nbsp;○ No

**Quarterly Code of Ethics Attestation**

**By completing the following Printed Electronic Signature, you are certifying that to the best of your knowledge, the above information is correct.**

**Additionally, you are certifying that you have complied with and will continue to comply with the requirements of the Code of Ethics and that you have disclosed or reported all personal securities transactions required to be disclosed or reported pursuant to the Code of Ethics. Moreover, you agree to promptly report to the Chief Compliance Officer or designee any violation or possible violation of the Code of Ethics of which you become aware. You understand that violation of the Code of Ethics will be grounds for disciplinary action or dismissal and may also be a violation of federal and/or state securities laws.**

**The following Printed Electronic Signature attestation will serve as certification for each entity listed below:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aristotle Capital Management, LLC** 

**\*** **Printed Electronic Signature**

Page 4 (of 4)

**<u>EXHIBIT E</u>**

**Sample Form of Brokerage Letter**

**(For use when data feed is not available from the custodian)**

[Date]

[Broker Name]

[Address]

Re: Account No.<u> </u> Account Name<u> </u>

Dear [Broker Name],

As of [Date], please send to Aristotle Capital Management, LLC, a duplicate confirmation of each transaction in the above-named account and a duplicate monthly brokerage account statement for the above-named account.

Please mail the confirmations and account statements to:

Aristotle Capital Management, LLC c/o 1330 St. Mary's Street

Suite 400

Raleigh, NC 27605

Attention: Chief Compliance Officer

Thank you for your prompt attention to this matter.

Sincerely,

[Access Person]

cc: Chief Compliance Officer

**<u>EXHIBIT F</u>**

**Sample Code of Ethics Recipt Attestation**

**<u>RECEIPT OF THE CODE OF ETHICS</u>**

**This form must be completed by each Access Person within 10 days of becoming an Access Person; and upon receipt of any amendment to the Code of Ethics.**

**The below links provide access to the Code of Ethics. Please select the link, open the document and review the current version of the Code of Ethics. Once completed, please attest that you have read and understand the Code of Ethics.**

 ****

***Please note, once you click the below link, a new window should open where you can access the Code of Ethics. Once you have reviewed the document, you can close that window and return to this certification.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  **<u>Code of Ethics</u>** 

**I hereby acknowledge receipt ofthe current Code of Ethics (the "Code"), including any applicable amendments. I hereby certify that I**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Recently have read/re-read the Code (including any amendments thereto);**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Understand the Code; and**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Recognize that I am subject to its provisions.**

**I also hereby certify that I have complied with and will continue to comply with the requirements of the Code and that I have disclosed or reported all personal securities transactions required to be disclosed or reported pursuant to the Code. Moreover, I agree to promptly report to the Chief Compliance Officer any violation or possible violation of the Code of which I become aware. I understand that violation of the Code will be grounds for disciplinary action or dismissal and may also be a violation of federal and/or state securities laws.**

**\*** **Electronic Signature**

Page 1 (of 1)

EXHIBIT G

**Political Contribution Pre-clearance Request**

EXHIBIT H

**Gift Reporting Form**

EXHIBIT I

**Outside Activity Reporting Form**

![](img_p7.jpg)

**CODE OF ETHICS <br> AND STANDARDS OF**

**PROFESSIONAL CONDUCT**

**PREAMBLE**

The CFA Institute Code of Ethics and Standards of Professional Conduct are fundamental to the values of CFA Institute and essential to achieving its mission to lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society. High ethical standards are critical to maintaining the public's trust in financial markets and in the investment profession. Since their creation in the 1960s, the Code and Standards have promoted the integrity of CFA Institute members and served as a model for measuring the ethics of investment professionals globally, regardless of job function, cultural differences, or local laws and regulations. All CFA Institute members (including holders of the Chartered Financial Analyst<sup>®</sup> [CFA<sup>®</sup>] designation) and CFA candidates must abide by the Code and Standards and are encouraged to notify their employer of this responsibility. Violations may result in disciplinary sanctions by CFA Institute. Sanctions can include revocation of membership, revocation of candidacy in the CFA Program, and revocation of the right to use the CFA designation.

**THE CODE OF ETHICS**

Members of CFA Institute (including CFA charterholders) and candidates for the CFA designation ("Members and Candidates") must:

• Act with integrity, competence,
 diligence, respect and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the
 investment profession, and other participants in the global capital markets.

• Place the integrity of the investment
 profession and the interests of clients above their own personal interests.

• Use reasonable care and exercise independent
 professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging
 in other professional activities.

• Practice and encourage others
 to practice in a professional and ethical manner that will reflect credit on themselves and the profession.

• Promote the integrity and viability
 of the global capital markets for the ultimate benefit of society.

• Maintain and improve their professional
 competence and strive to maintain and improve the competence of other investment professionals.

**STANDARDS OF PROFESSIONAL CONDUCT**

**I.** **PROFESSIONALISM** 

**A.** **Knowledge of the Law.** Members
 and Candidates must understand and comply with all applicable laws, rules, and regulations (including the CFA Institute Code of
 Ethics and Standards of Professional Conduct) of any government, regulatory organization, licensing agency, or professional association
 governing their professional activities. In the event of conflict, Members and Candidates must comply with the more strict law, rule,
 or regulation. Members and Candidates must not knowingly participate or assist in and must dissociate from any violation of such
 laws, rules, or regulations.

**B.** **Independence and Objectivity.** Members
 and Candidates must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional
 activities. Members and Candidates must not offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably
 could be expected to compromise their own or another's independence and objectivity.

**C.** **Misrepresentation.** Members and
 Candidates must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional
 activities.

**D.** **Misconduct.** Members and Candidates
 must not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely on their
 professional reputation, integrity, or competence.

**II.** **INTEGRITY OF CAPITAL MARKETS** 

**A.** **Material Nonpublic Information.** Members
 and Candidates who possess material nonpublic information that could affect the value of an investment must not act or cause others
 to act on the information.

**B.** **Market Manipulation.** Members
 and Candidates must not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead
 market participants.© 2014 CFA Institute www.cfainstitute.org

**III.** **DUTIES TO CLIENTS** 

**A.** **Loyalty, Prudence, and Care.** Members
 and Candidates have a duty of loyalty to their clients and must act with reasonable care and exercise prudent judgment. Members and
 Candidates must act for the benefit of their clients and place their clients' interests before their employer's or their
 own interests.

**B.** **Fair Dealing.** Members and Candidates
 must deal fairly and objectively with all clients when providing investment analysis, making investment recommendations, taking
 investment action, or engaging in other professional activities.

**C.** **Suitability.** 

&nbsp;&nbsp;&nbsp;&nbsp;**1.** When Members and Candidates
 are in an advisory relationship with a client, they must:

**a.** Make a reasonable inquiry into a client's
 or prospective client's investment experience, risk and return objectives, and financial constraints prior to making any investment
 recommendation or taking investment action and must reassess and update this information regularly.

**b.** Determine that an investment is suitable
 to the client's financial situation and consistent with the client's written objectives, mandates, and constraints before
 making an investment recommendation or taking investment action.

**c.** Judge the suitability of investments
 in the context of the client's total portfolio.

**2.** When Members and Candidates are responsible
 for managing a portfolio to a specific mandate, strategy, or style, they must make only investment recommendations or take only investment actions that are consistent with the stated objectives and constraints of the portfolio.

**D.** **Performance Presentation.** When communicating investment performance information, Members and Candidates must make reasonable efforts to ensure that it
 is fair, accurate, and complete.

**E.** **Preservation of Confidentiality.** Members and Candidates must keep information about current, former, and prospective clients confidential unless:

&nbsp;&nbsp;&nbsp;&nbsp;**1.** The information concerns
 illegal activities on the part of the client or prospective client,

**2.** Disclosure is required by law, or

**3.** The client or prospective client permits
 disclosure of the information.

**IV.** **DUTIES TO EMPLOYERS** 

**A.** **Loyalty.** In matters related to
 their employment, Members and Candidates must act for the benefit of their employer and not deprive their employer of the advantage
 of their skills and abilities, divulge confidential information, or otherwise cause harm to their employer.

**B.** **Additional Compensation Arrangements.** Members and Candidates must not accept gifts, benefits, compensation, or consideration that competes with or might reasonably
 be expected to create a conflict of interest with their employer's interest unless they obtain written consent from all parties
 involved.

**C.** **Responsibilities of Supervisors.** Members and Candidates must make reasonable efforts to ensure that anyone subject to their supervision or authority complies
 with applicable laws, rules, regulations, and the Code and Standards.

**V.** **INVESTMENT ANALYSIS, RECOMMENDATIONS, AND ACTIONS** 

**A.** **Diligence and Reasonable Basis.** Members
 and Candidates must:

&nbsp;&nbsp;&nbsp;&nbsp;**1.** Exercise diligence, independence,
 and thoroughness in analyzing investments, making investment recommendations, and taking investment actions.

**2.** Have a reasonable and adequate basis,
 supported by appropriate research and investigation, for any investment analysis, recommendation, or action.

**B.** **Communication with Clients and Prospective Clients.** Members and Candidates must:

&nbsp;&nbsp;&nbsp;&nbsp;**1.** Disclose to clients and
 prospective clients the basic format and general principles of the investment processes they use to analyze investments, select securities,
 and construct portfolios and must promptly disclose any changes that might materially affect those processes.

**2.** Disclose to clients and prospective
 clients significant limitations and risks associated with the investment process.

**3.** Use reasonable judgment in identifying
 which factors are important to their investment analyses, recommendations, or actions and include those factors in communications
 with clients and prospective clients.

**4.** Distinguish between fact and opinion
 in the presentation of investment analysis and recommendations.

**C.** **Record Retention.** Members
 and Candidates must develop and maintain appropriate records to support their investment analyses, recommendations, actions, and
 other investment-related communications with clients and prospective clients.

**VI.** **CONFLICTS OF INTEREST** 

**A.** **Disclosure of Conflicts.** Members
 and Candidates must make full and fair disclosure of all matters that could reasonably be expected to impair their independence and
 objectivity or interfere with respective duties to their clients, prospective clients, and employer. Members and Candidates must
 ensure that such disclosures are prominent, are delivered in plain language, and communicate the relevant information effectively.

**B.** **Priority of Transactions.** Investment
 transactions for clients and employers must have priority over investment transactions in which a Member or Candidate is the beneficial
 owner.

**C.** **Referral Fees.** Members and Candidates
 must disclose to their employer, clients, and prospective clients, as appropriate, any compensation, consideration, or benefit received
 from or paid to others for the recommendation of products or services.

**VII.** **RESPONSIBILITIES AS A CFA INSTITUTE MEMBER OR CFA CANDIDATE** 

**A.** **Conduct as Participants in CFA Institute Programs.** Members and Candidates must not engage in any conduct that compromises the reputation or integrity of CFA Institute
 or the CFA designation or the integrity, validity, or security of the CFA Institute programs.

**B.** **Reference to CFA Institute, the CFA Designation, and the CFA Program.** When referring to CFA Institute, CFA Institute membership, the CFA designation, or candidacy
 in the CFA Program, Members and Candidates must not misrepresent or exaggerate the meaning or implications of membership in CFA Institute,
 holding the CFA designation, or candidacy in the CFA program.

---

| | |
|:---|:---|
| ![](img_p8.jpg) | ![](img_p9.jpg) |
|  | www.cfainstitute.org |

---

## Ex-99.(P)(3)

**Exhibit 99.(p)(3)**

![](bah001.jpg)

Code of Ethics and Conduct

Barrow, Hanley, Mewhinney & Strauss, LLC

and

BH Credit Management LLC

![](img004.jpg)

![](bah001.jpg)

**CODE OF ETHICS AND CONDUCT**

**Table of Contents**

---

| | | |
|:---|:---|:---|
| Introduction | Introduction | 1 |
| Definitions | Definitions | 2 |
| I. | Policy for Possession of Material Non-Public Information ("MNPI") | 6 |
| II. | Duty of Confidentiality | 8 |
| III. | Procedures for Access Persons | 9 |
| IV. | Exempted Transactions | 13 |
| V. | Compliance Procedures | 13 |
| VI. | CCO's Authority and Duties | 18 |
| VII. | Reporting of Violations | 18 |
| VIII. | Reporting to the Board of Managers | 18 |
| IX. | Sanctions | 18 |
| X. | Retention of Records | 19 |
| Exhibits | Exhibits | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Initial Report of Access Persons | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Initial Report of Access Persons | Exhibit A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual Report of Access Persons | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual Report of Access Persons | Exhibit B |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quarterly Transactions Report of Access Persons | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quarterly Transactions Report of Access Persons | Exhibit C |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Personal Reportable Securities Transaction Pre-Clearance Form of Access Persons | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Personal Reportable Securities Transaction Pre-Clearance Form of Access Persons | Exhibit D |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Personal Political Contribution Pre-Clearance Form of Access Persons | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Personal Political Contribution Pre-Clearance Form of Access Persons | Exhibit E |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;List of Reportable Funds of Access Persons | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;List of Reportable Funds of Access Persons | Exhibit F |

---

![](img004.jpg)

i

![](bah001.jpg)

**Introduction**

Barrow Hanley Global Investors ("Barrow Hanley" or "the Firm") has adopted this *Code of Ethics and Conduct* ("Code") in its current form in compliance with the requirements of Section 204A-1 of the Investment Advisers Act of 1940 (the "Advisers Act") and Section 17(j) of the Investment Company Act of 1940. This Code was last amended on December 31, 2021. The Code requires the Firm's Access Persons to comply with the federal securities laws and the Firm's policies and procedures, sets standards of business conduct required of the Firm's supervised persons, and addresses conflicts that arise from personal transactions and other activity by Access Persons. The policies and procedures outlined in the Code are intended to promote compliance with fiduciary standards by the Firm and its Access Persons. As a fiduciary, the Firm and its employees: (i) have the responsibility to render professional, continuous, and unbiased investment advice, (ii) owe its clients a duty of honesty, good faith, and fair dealing, (iii) must act at all times in the best interests of clients, and (iv) must avoid or disclose conflicts of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Barrow Hanley's *Code of Ethics and Conduct* is designed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Set standards for ethical conduct based on the fundamental principles of openness, integrity, honesty,
and trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Protect the Firm's clients by deterring misconduct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Educate employees regarding the Firm's expectations and the laws governing their conduct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Remind employees that they are in a position of trust and must act with complete propriety at all times;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Protect the reputation of the Firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Guard against violations of the securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Establish procedures for employees to monitor the Firm's business and uphold its ethical principles;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Discourage excessive risk-taking in employees' personal investments and/or in a client's account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. This *Code of Ethics and Conduct* is based upon the principle that the directors, officers, and employees
of the Firm owe a fiduciary duty to the Firm's clients to conduct their affairs, including their personal transactions, in such
a manner as to avoid:

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Serving their own personal interests ahead of a client's interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Taking inappropriate advantage of their position with the Firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Actual or potential conflicts of interest; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Abuse of their position of trust and responsibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. As a fiduciary, employees should avoid conflicts of interest where possible. This Code requires disclosure
and reporting of any unavoidable conflicts of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. This Code is designed to implement controls that discourage employees from taking excessive risk in a
client's account and/or in the employee's personal investments and Reportable Account(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Barrow Hanley's fiduciary duty includes the duty of the Chief Compliance Officer ("CCO")
of the Firm to maintain, monitor, and enforce the Code, periodically review and amend the Code, and to report material violations of the
Code to the Firm's Board of Managers and clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. This Code contains requirements necessary to prevent Access Persons from violating the Firm's standards
and procedures designed to prevent violations of the Code. Each Access Person at the commencement of their employment must certify to
their understanding of the Code's requirements and acknowledge to abide by all of the Code's provisions and prohibitions.
Each Access Person must re-certify their understanding and acknowledgement of the Code annually, and any time the Code is amended.

**Definitions**

The following terms are used throughout this Code and are defined here to describe and explain their use and purpose for the Code's provisions and prohibitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **"Access Person *"*** means supervised persons of the Firm including any director,
officer, general partner, Advisory Person, Investment Personnel, Portfolio Manager, or employee of the Firm. The CCO may, in her discretion,
designate other individuals (e.g., consultants, interns and temporary employees) that have access to client information as Access Persons
of the Firm. The CCO may exempt certain Access Person(s) and/or Members of its Board of Managers from certain provisions and prohibitions
of this Code who are subject to another code of ethics that has been approved by the CCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.  ***"* Advisory Person *"*** means any person in a Control relationship to the Firm
who obtains information concerning recommendations made to the Firm with regard to the purchase or sale of a security by the Firm.

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. "**Affiliate" or "Affiliated Company**" means a company which is an affiliate
of the Firm through a corporate relationship, including the Firm's parent company, Perpetual Limited ("Perpetual") (ASX
ticker: PPT).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. **"Beneficial Ownership"** means any person who, directly or indirectly, through any contract,
arrangement, understanding, relationship, or otherwise, has or shares a direct or indirect beneficial interest in a Reportable Security.
Such relationships may include but are not limited to an employee's spouse, children, parents, guardians, or person for whom the
employee has control or owes a duty of care.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. **"Black-out Period"** means the time period designated by the CCO whereby an Access Person
and/or Family Members must not trade a Reportable Security, see Trading Restriction for Access Persons, Section III.D., page 13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. **"Business Entertainment**" means an Access Person's participation, whether as a
guest or host, in lunches, dinners, cocktail parties, sporting activities or similar business gatherings conducted for business purposes.
Business Entertainment is not a Gift.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. **"Control"** means the power to exercise a controlling influence over the management or
policies of a company or person unless such power is solely the result of an official position with such company. Any Person or entity
who owns beneficially, either directly or through one or more controlled companies or relationships, more than 25% of the voting securities
of a company shall generally be presumed to control such company. Any Person who does not own more than 25% of the voting securities of
any company shall not be presumed to control such company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. **"Covered Associate"** means any general partner, managing member, executive officer,
or other individual with a similar status or function, any employee who solicits a government entity for the investment adviser and any
person who supervises, directly or indirectly, such employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **"Direct Beneficial Interest"** means a Person has a direct interest as an owner of something
or receives a direct benefit from an investment in a Reportable Security. A direct benefit may derive from an indirect interest in, among
other things, something owned by a Person's spouse, domestic partner, or Family Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. **"Family Member"** means an Access Person's spouse, domestic partner, minor children,
and relatives by blood or marriage living in the same household as the Access Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. **"Gift"** means cash or any item of value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L. **"Government Entity"** means any state or local government agency, authority, or instrumentality
of a state or local government, any pool of assets sponsored by a state or local government (i.e., defined benefit pension plan, separate
account or general fund), and any participant-directed government plan.

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M. **"Indirect Beneficial Interest"** means a Person, who is not an owner, receives an indirect
benefit from an investment in a Reportable Security. An Indirect Beneficial Interest may be derived from any number of sources, as noted
above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N. **"Investment Personnel"** means: any Portfolio Manager of the Firm, Research Analysts,
Traders, Client Portfolio Managers, and other personnel who provide information and advice to the Portfolio Manager, or who help execute
the Portfolio Manager's investment selection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;O. "**Managed Fund**" means any Reportable Fund for which the Firm serves as an Investment
Adviser or Sub-Adviser. A list of Managed Funds is attached as Exhibit F, and is available on StarCompliance, or from the Compliance Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;P. **"Person"** means any Person or company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Q. **"Political Action Committee" or "PAC"** means an organization whose purpose
is to solicit and make Political Contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R. **"Political Contribution"** means any Gift, subscription, loan, advance, or deposit of
money (such as gift certificates or merchandise), or anything of value given to a candidate or PAC for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The purpose of influencing any election;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The payment of debt incurred in connection with any such election;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Transition or inaugural expenses of the successful candidate for office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Coordinating contributions through bundling or facilitating the contributions of other persons or PACs,
including acting as a host to solicit contributions.

Examples of contributions include, (i) the cost of attending or hosting fundraising events; (ii) payments to bond ballot campaigns; (iii) expenses incurred in connection with fundraising; or (iv) expenses incurred from other volunteer activities (e.g., hosting a reception).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S. **"Political Fundraising Activities"** include, but are not limited to, the following activities
on behalf of a state or local candidate or official:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Coordinating contributions (generally, bundling, pooling, or otherwise facilitating the contributions
made by other persons, including hosting events);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Soliciting contributions (generally, communicating, directly or indirectly, for the purpose of obtaining
or arranging a Political Contribution); or

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Directing fundraising efforts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T. **"Portfolio Directional Trade"** means a trade directed by a Portfolio Manager intended
to increase or decrease a security's investment weighting in a client's account. This is a separate type of trade from a trade
required to satisfy a client's cash-flow request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U. **"Portfolio Manager"** means an employee of the Firm entrusted with the direct responsibility
and authority to make investment selection decisions for a client's account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. "**Reportable Account**" means any account maintained with a bank, broker, or other entity
in which an Access Person or Family Member owns Reportable Securities or has the ability to transact in Reportable Securities or has discretion
over trading Reportable Securities on behalf of another.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W. "**Reportable Fund**" means any Fund or Trust where the Firm or an Affiliate acts as the
investment adviser, sub-adviser or principal underwriter for the fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. **"Reportable Security"** means a Security that is subject to the requirements of
 this Code, including any note, stock, treasury stock, corporate or municipal bond, foreign government bond, debenture,
 exchange-traded fund ("ETF"), evidence of indebtedness, bank loan, certificate of interest or participation in any
 profit-sharing agreement, collateral-trust certificate, pre-organization certificate or subscription, transferable share, investment
 contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other
 mineral rights, any put, call, straddle, option, future, swap, convertible, or privilege on any security, group, or index of
 Reportable Securities on a national securities exchange, relating to foreign currency, or, in general, any interest or instrument
 commonly known as a security, or instrument for trading speculation, or any certificate of interest or participation in, temporary
 or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing,
 Reportable Fund, Managed Fund, limited offering or partnership, bank loan for the purpose of investing, private placement, or hedge
 fund investment.  ***Reportable Security does not mean*** direct obligations of the Government of the United States, high
 quality short-term debt instruments, bankers' acceptances, bank certificates of deposit, commercial paper, repurchase
 agreements, crypto currencies and other blockchain technologies, and shares issued by mutual funds that are not Reportable
 Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Y. **"Solicit a Government Entity for Investment Advisory Services"** means a direct or indirect
communication with a state or local Government Entity for the purpose of obtaining or retaining investment advisory services business
including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Leading, participating in, or attending a sales/solicitation meeting with a state or local Government
Entity, such as a government pension plan or general fund;

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Otherwise holding oneself out as part of the Barrow Hanley's representative or sales/solicitation
effort with a state or local Government Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Signing a submission to an RFP in connection with Barrow Hanley's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Making introductions between government officials and Barrow Hanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Z. **"State or Local Official(s)"** means any person, including any election committee for
such person, who was, at the time of a Political Contribution, an official, incumbent, candidate, or successful candidate for elective
office of a state or local government, including, but not limited to, any state or local agency, authority, or instrumentality, limited
exceptions may apply depending on the nature of the office, as identified by the Firm's CCO.

I. Policy for Possession of Material Non-Public Information ("MNPI")

The Firm's Policy for possession of material non-public information applies to every Person subject to this Code, including Access Persons and their Family Members, and extends to his/her activities within and outside of his/her duties at the Firm. Any questions regarding this policy and procedures should be referred to the Firm's CCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. In compliance with Section 204A of the Advisers Act, the Firm forbids any officer, director, Access Person
or Family Member, from acting on and/or trading, either personally, on behalf of clients, or others, including accounts managed by the
Firm, on material non-public information, or communicating material non-public information to others in violation of the law, frequently
referred to as "insider trading".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The term "material non-public information" means information that is material to a company,
a government policy, or other regulatory entity or policy that is not known to the public and is material to the value of such company,
or related industry or entity, and if made public would affect the value of such company's shares, or impact the investment market(s),
and investments of a Person, or client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The term "insider trading" is not defined in the federal securities laws, but generally is
used to refer to the use of material non-public information to trade in Securities (whether or not one is an "insider"), or
to communicate material non-public information to others. The term "insider information" includes non-public facts about a
publicly traded company that may be used to a Person's financial advantage when trading shares of the Company and includes information
about the firm's securities recommendation(s), and client holdings and transactions. While the law concerning insider trading is
not static, it is generally understood that the law prohibits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Trading by a Person while in possession of material non-public information, (i) whether the Person is an
insider or not; (ii) whether the information was disclosed to the Person in violation of an insider's duty to keep it confidential;
whether the information was misappropriated or received inadvertently; or whether the trade was profitable or not.

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Communicating material non-public information to others in a breach of fiduciary duty, or for another's
intent to trade on the information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Information is material if or when there is a substantial likelihood that a reasonable investor would
consider it important in making his/her investment decisions(s), or information that is reasonably certain to have a substantial effect
on the price of a company's securities (shares or bonds) whether it is determined factual or a rumor. Information that a Person
subject to this Code should consider material includes, but is not limited to: dividend changes, earnings estimates, changes in previously
released earnings estimates, significant merger or acquisition proposals or agreements, major litigation, debt service and liquidation
problems, extraordinary management developments, write-downs or write-offs of assets, additions to reserves for bad debts, new product/services
announcements, criminal, civil, and government investigations and indictments. Material information does not have to relate to a company's
business. For example, material information about the contents of any upcoming press release, media column, or blog that may affect the
price of a security, and therefore, may be considered material. Disclosure of a mutual fund client's trades or holdings, or any
client's holdings that are not publicly available, may be considered material information and must be kept confidential. All employees
of Barrow Hanley are subject to this Policy and to the *Duty of Confidentiality* of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Information is non-public until it has been effectively communicated to the marketplace. A Person must
be able to point to some fact to show that the information is generally public. For example, information found in a report filed with
the SEC, or appearing in the media, internet, or other publications of general circulation would be considered public. A Person should
be particularly careful with information received from contacts at public companies or received through their position with Barrow Hanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Each Person must consider the following before trading for themselves or others in the Reportable Securities
of a company about which that Person has potential inside information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Is the information material? Is this information that an investor would consider important in making his/her
investment decisions? Is this information that would affect the market price of the Reportable Security if generally disclosed?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Is the information non-public? To whom has this information been provided? Has the information been effectively
communicated to the marketplace?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. The role of the Firm's CCO is critical to the implementation and maintenance of the Firm's
policy and procedures against insider trading. If, after consideration of the above, a Person believes that the information is material
and non-public, or if a Person has questions as to whether the information is material and non-public, that Person should take the following
steps:

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Report the matter immediately to the Firm's CCO. After the CCO has reviewed
the issue, a determination will be made as to trading or restricting the security, and the employee will be instructed to continue the
prohibition against communication or will be allowed to trade and communicate the information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Do not purchase or sell the securities on behalf of him/herself or others. The Firm may determine to restrict
trading in the security for Access Persons, for the clients' portfolios or both.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Do not communicate the information to anyone inside or outside the Firm, other than to the Firm's
CCO as required under this Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. The CCO may communicate potential insider information to outside counsel and compliance/legal
personnel at Perpetual, for consultative purposes. In addition, care should be taken so that such information is secure. For example,
files containing material non-public information should be sealed; access to computer files containing material non-public information
should be restricted. The CCO will review and appropriately document each circumstance where the possibility of insider information has
been reported. Further actions to restrict trading in the security, to release a restriction against trading, or to limit trading, are
based on the facts and circumstances of the information.

**II. Duty of Confidentiality**

Any Person subject to this Code must keep confidential at all times any non-public information they may obtain in the course of their employment at the Firm. This information includes but is not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Information about a client's account, including account holdings, recent or pending securities transactions,
investment recommendations, and/or activities of the Portfolio Managers and Research Analysts for clients' accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Information about the Firm's clients and prospective clients' investments and account transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Information about the Firm's personnel, including private personally identifiable information
 (PII), pay, salary, bonus, equity interest, benefits, position level, performance rating, discipline history, non-business
 information obtained in the course of the employee's job, and other things; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Information about the Firm's financial information, business activities, including new investment
strategies, services, products, technologies, business initiatives, client gains/losses, and negotiated fee details.

![](img004.jpg)

The Firm's personnel have the highest fiduciary obligation to keep confidential information relating to Perpetual to any party that does not have a clear and compelling need to know such information, and to safeguard all confidential information about the Firm and its clients. Barrow Hanley's *Privacy Policy* for safeguarding clients' personal information, account information, and transactions is provided in the Firm's *Compliance Policies and Procedures*. The information for data security and systems are provided in the Firm's *IT Security Policies and Procedures*.

Nothing in this Code precludes any Access Person from contacting, filing a complaint with, providing information to, or cooperating with an investigation conducted by the U.S. Securities and Exchange Commission or any other governmental agency.

III. Procedures for Access Persons

In an effort to comply with federal securities regulations and the high standards Barrow Hanley has set to avoid potential conflicts of interest, the following procedures have been adopted:

**Who Must Comply with these Procedures?**

All employees of Barrow Hanley and their Family Members are subject to, and must comply with, the requirements of this Code. (In general, you must report all securities-related accounts for yourself, household members, and/or any person whose investments you may direct, see Section B., *Personal Trading Procedures for Access Persons and Family Members,* below.) In addition to employees, under certain circumstances, other individuals who work for or with Barrow Hanley may also be required to comply with this Code (e.g., interns, temporary workers, and consultants). A member of Barrow Hanley's Compliance team will notify such individuals when, and if, they are required to comply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **General Procedures for Access Persons.** As defined by this Code, all employees of the Firm are identified
as Access Persons and are subject to the following restrictions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Restriction on Accepting and Giving Gifts of More than *de Minimis* Value.** Without pre-approval of the CCO, Access Persons
 are restricted from accepting or giving any Gift(s) of more than *de minimis* value
 under this Code from/to any Person or entity/organization when the Gift(s) is related to
 conducting the Firm's business. Gifts must be reported monthly, or at the time a Gift
 is accepted or given. Reports should be made in StarCompliance or the Gift and Entertainment
 Form available on the Firm's shared file network at: <u>S:\BHMS_Shared\Compliance\Forms</u> 

Questions about this Gift policy should be directed to the CCO. A Gift does not include Business Entertainment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The *de minimis* amount for accepting a Gift(s) is USD $100 (in total) per Person and is
 considered to be the annual receipt of Gift(s) from the same source valued at up to USD $100;

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The *de minimis* amount for Gift(s) giving by the Firm or its employees is USD $250 (in total)
 per Person, and is considered to be the annual giving of Gift(s) to the same Person valued at up to USD $250;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. ERISA and Taft Hartley regulations have specific limitations for Gifts and Entertainment and reporting
requirements when Gifts are given. To ensure proper reporting the CCO should be notified when an employee intends to give
a Gift to an ERISA or Taft Hartley client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Reporting Business Entertainment.** Access Persons, whether the employee is the provider or participant, must report *Business Entertainment* activity monthly, or at the time it occurs. Extravagant or excessive entertainment
 is prohibited. Questions about what may be considered extravagant or excessive should be
 directed to the CCO. Any exceptions to this policy must be approved by the CCO. *Business Entertainment* should be reported in StarCompliance or on the Gift and Entertainment Form
 available on the Firm's shared file network at: <u>S:\BHMS_Shared\Compliance\Forms</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Prohibition on Service as a Director or Public Official.** Due to the obvious conflict of interest,
Access Persons, including Investment Personnel, are prohibited from serving on the board of directors of any publicly traded company,
or for-profit company, without prior authorization of the Firm's CCO. Any such authorization shall be based upon a determination
that the board service would be consistent with and not detract from the interests of the Firm's clients. Authorization of board
service shall be subject to a review of such service and implementation of procedures to identify and isolate such a Person from making
decisions about investments or trading in that company's securities, or advising about investing the company's assets, and
adequate disclosure of any conflicts of interest must be provided to the CCO and may be disclosed in the Firm's Form ADV, and/or
other documentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Personal Trading Procedures for Access Persons and Family Members.** The policies of this Code apply
to all employees of the Firm identified as Access Persons and the procedures extend to accounts of which the Access Person is the beneficial
owner, or accounts in which he/she has any financial interest, or ability to exercise control or influence over its investments or trading.
The procedures <u>also</u> extend to any account belonging to immediate Family Members (including any relative by blood or marriage) living
in the Access Person's household or dependent on the Access Person for financial support. Thus, a Person subject to this Code is
required to abide by the following procedures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Prohibition on Initial Public Offerings ("IPO").** Persons subject to this Code are prohibited
from acquiring securities in an initial public offering or secondary offerings.

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Prohibition on Initial Coin Offerings ("ICO").** Persons subject to this Code are prohibited from securities transactions
 involving an initial coin offering.

3. **Restriction on Private Placements.** Persons subject to this Code are restricted from acquiring securities
in a private placement without prior approval from the Firm's CCO. In the event that an Access Person receives approval to purchase
securities in a private placement, the Access Person must disclose that investment if/when the company intends to offer shares to the
public in an IPO and/or if he/she plays any part in the Firm's later consideration of an investment in the issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Prohibition on purchasing Perpetual securities.** Persons subject to this Code are prohibited from
acquiring securities issued by the Firm's parent company, Perpetual Limited (ASX ticker: PPT), or any publicly traded securities
of other related or Affiliated Company(s) in their own account or in a client's account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Restriction on Options, Swaps, Futures, or Derivatives.** Persons subject to this Code are restricted
from purchasing or selling any option, swap, future, or derivative on any Security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Prohibition on Naked Options.** Persons subject to this Code are prohibited from trading Options,
Swaps, Futures or Derivatives on any Security or instrument that the Access Person does not have previously set-aside shares, Securities,
or cash to fulfill the obligation of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Prohibition on Short-selling.** Persons subject to this Code are prohibited from selling any Security
that the Access Person does not own, or otherwise engaging in "short-selling" activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Prohibition on Short-term Trading Profits.** Persons subject to this Code are prohibited from profiting
in the purchase and sale, or sale and purchase, of the same (or related) Reportable Securities within 60 calendar days. Profits realized
on such short-term trades are generally subject to disgorgement, as determined by the Firm's CCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Prohibition on Short-term Trading of Managed Funds.** Persons subject to this Code are prohibited
from short-term trading of any Managed Fund shares. For the purpose of this Code, short-term trading is defined as a purchase and redemption/sell
of a Managed Fund's shares within 30 calendar days. This prohibition does not cover purchases and redemptions/sales: (i) into or
out of money market funds or short-term bond funds; (ii) purchases effected on a regular periodic basis by automated means, such as 401(k)
purchases, or Voluntary Deferral Plan "VDP" contributions ("automated means" are pre-selected investment allocations;
401(k) or VDP trades that are not automated are subject to at least a 30-day holding period).

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **Political Contribution and Charitable Contribution Procedures for Access Persons and Family Members.** The Firm is prohibited from making political contributions. Employees of Barrow Hanley are prohibited from making Political Contributions
in the name of the Firm. As defined by this Code, all employees of the Firm are identified as
Access Persons and are subject to the following restrictions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Personal Political Contributions to Candidates.** All Access Persons and their Family Members
 are limited in the amount of any political contribution to any state or local office holder or candidate to the following: (i) if
 the Access Person or their Family Member is Eligible to Vote for such candidate, contributions are limited to the *di minimus* amount of USD $350; (ii) if the Access Person or their Family Member is not entitled to vote for such candidate, contributions are
 limited to the *di minimus* amount of USD $150. Certain exceptions to this policy based on the Pay-to-Play Rule may be
 permitted by the CCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Pre-Clearance of Personal Political Contributions and Fundraising Activities.** All Access Persons
and their Family Members must obtain approval in advance from the CCO before: (i) making any Political Contribution to any state, or local
candidate, or official running for state or local office, or candidate for a federal office who is currently a State or Local Official,
and (ii) participating in any Political Fundraising Activities. Political Contributions and Political Fundraising Activity will be approved
on a case-by-case basis. Pre-clearance should be obtained prior to making a Political Contribution or participating in a Political Fundraising
Activity by completing and submitting a Personal Political Contribution Pre-Clearance Form for fundraising activity in StarCompliance
or Exhibit E. The CCO will review each request to determine whether the Political Contribution or Political Fundraising Activity is permitted
under applicable law and is consistent with this policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Prohibition on Certain Political Contributions.** Access Persons may not make personal Political
Contributions for the purpose of obtaining or retaining advisory contracts with government entities, clients, or for any other business-related
purpose. Access Persons also may not consider any of the Firm's current or anticipated business relationships as a factor in soliciting
or making Political Contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Prohibition on Certain Charitable Contributions.** Access Persons may not consider any of the Firm's
current or anticipated business relationships as a factor in soliciting or making charitable contributions and may not make charitable
contributions for the purpose of obtaining or retaining advisory contracts with government entities or clients. The Firm may make charitable
contributions as part of its formal charitable efforts and not for the purpose of obtaining or retaining advisory contracts with government
entities or clients and must be made in the name of Barrow Hanley and payable directly to the tax-exempt charitable organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Indirect Action by an Access Person.** Access Persons are prohibited from doing anything indirectly
that, if done directly, would result in a violation of applicable law or this policy. For example, it is a violation of this policy for
an Access Person to direct someone on their behalf to make a Political Contribution in excess of applicable limits.

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. **Trading Restriction for Access Persons and Family Members on the Same Day as a Portfolio Directional Trade.** Access Persons and Family Members are restricted from purchasing or selling any Reportable Security on the same day the Firm
executes a Portfolio Directional Trade in that same security for a client account. Reasonable exceptions may be granted by the CCO when
the trade does not appear to affect or harm any client.

IV. Exempted Transactions

Certain prohibitions and restrictions for Access Persons and Family Members in Section III., B. and D. above, do not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Purchases or sales of a Reportable Security made on the same day that a cash flow trade is executed in
that same security for a client account, as determined and authorized by the Firm's CCO or her representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Purchases which are part of an automatic dividend reinvestment plan, or an automatic investment plan,
or automated means of 401(k) purchases, or VDP contributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Purchases effected upon the exercise of rights issued by an issuer pro-rata to all holders of a class
of its Reportable Securities, to the extent such rights were acquired from such issuer; or sales of such rights so acquired, or sales
occurring simultaneously with the exercise of such rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Purchases and sales in shares of unaffiliated mutual funds, or ETFs or Options on ETFs. Holdings in unaffiliated
mutual funds, ETFs and Options on ETFs must be reported annually, and transactions must be reported quarterly; however, generally trades
in unaffiliated mutual funds, ETFs, and Options on ETFs do not require pre-clearance and are exempt from the 60-day holding for realizing
a profit. Exceptions to this exemption may apply when an ETF is purchased for a client's account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. In addition to the above exemptions, the CCO may make exceptions to the restrictions imposed upon persons
subject to the Code on a case-by-case basis, as deemed appropriate by the CCO, and which appear upon inquiry and investigation to present
no reasonable likelihood of harm to any client.

V. Compliance Procedures

All access persons are subject to the following procedures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. StarCompliance
 Application. Access Persons should use the StarCompliance
 Application for pre-clearance and reporting requirements under this Code. Certain transactions
 may require written pre-clearance and reporting on Reports identified as Code Exhibits A,
 B, C, D, or E, and these forms are available on the Firm's shared drive at: <u>S:\BHMS_Shared\Compliance\Policies.</u>![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Records of Reportable Securities Transactions . Access Persons must notify
the Firm's CCO if they or a Family Member have opened a Reportable Account during the quarter. Access Persons must direct their
brokers to report into StarCompliance via a data feed or provide the Firm's CCO with duplicate brokerage confirmations of their
Reportable Securities transactions and duplicate statements of their Reportable Account(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Pre-Clearance of Reportable Securities Transactions. Access Persons
and Family Members must receive prior approval from a designated member of compliance, before purchasing or selling Reportable Securities.
Exclusions to this are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Managed Funds in the Firm's 401K Plan or VDP Plan,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Exchange Traded Funds (ETFs);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Purchases and sales over which a Person subject to the Code has no direct
or indirect influence or control, such as automatic investments in 401K or VDP accounts, Family Trust Funds, or other accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Purchases or sales pursuant to an automatic action under an automated
investment plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Purchases effected upon exercise of rights issued by an issuer pro rata
to all holders of a class of its securities, to the extent such rights were acquired from such issuers, and sales of such rights so acquired
or sales occurring simultaneously with the exercise of such rights, acquisition of securities through stock dividends, dividend reinvestments,
stock splits, reverse stock splits, mergers, consolidations, spin-offs, and other similar corporate reorganizations, or distributions
generally applicable to all holders of the same class of securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Open-End Investment Company Shares Other Than Managed Funds. This Code
provides a limited exception on Reportable Securities from pre-clearance and short-term trading profit requirements; securities under
this exception include ETFs. (Reportable Funds must be held 30 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Pre-Clearance for Reportable Securities is Valid for That Trading Day. Personal
Reportable Securities transactions should be pre-cleared using the StarCompliance or Exhibit D, *Personal Reportable Securities Transaction(s) Pre-Clearance Form*. The CCO or another authorized member of the compliance team may approve transactions which appear upon inquiry and investigation to present no reasonable
likelihood of harm to any client. Exceptions to this requirement may include the CCO's approval of a pre-clearance
request(s) for a calendar week for trades in Reportable Securities that are not held in a client's account, do not fit the Firm's
investment strategies, and are thinly traded such that a trade order will not likely be filled on the day of the pre-clearance.

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Pre-Clearance of Any Transaction in a Managed Fund. All Access Persons
and Family Members must receive prior written approval from a designated member of compliance before purchasing or selling any Managed
Fund. Pre-clearance for Managed Funds is valid for that trading day. This pre-clearance requirement does not cover purchases and redemptions/sales:
(i) into or out of money market funds or short-term bond funds; (ii) effected on a regular periodic basis by automated means, such as
401(k) purchases and VDP transactions, or (iii) 401(k) investment reallocation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Disclosure of Personal Holdings, and Certification of Compliance with the Code of Ethics and Conduct. All Access Persons must disclose to the Firm's CCO all personal Reportable Securities holdings
at commencement of employment, and annually thereafter as of December 31. Every Access Person must certify on Exhibit A, *Initial Report of Access Persons*, or Exhibit B, *Annual Report of Access Persons*, or through StarCompliance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The employee recognizes that he/she and family member(s) is subject to all provisions and prohibitions
of this Code, and has read, understands, and will follow the Code's requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The employee and family member(s) have complied with the requirements of this Code, and have reported
all personal Reportable Securities, Reportable Accounts, holdings in Managed Funds, and Personal Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Initial holdings report must be made within ten days of hire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. **Reporting Requirements.** The CCO of the Firm will notify each Access Person that he/she
is subject to these reporting requirements, will deliver a copy of this Code to each Access Person prior to, or upon, their date of employment,
and at any time the Code is amended, and will train each Access Person on appropriate compliance matters. A member of the compliance team
will train employees to use StarCompliance for personal reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Reportable Securities managed by a third-party in a discretionary advisory account are subject to the
annual reporting requirements contained in this Section and are excluded from certain other provisions and prohibitions of the Code. (IPOs
and private placements are not excluded.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Reports, personal trades and holdings, and other information submitted pursuant to this Code shall be
reviewed periodically by the CCO, kept confidential, and when necessary, provided to the CEO of the Firm, Perpetual, the Firm's
legal counsel, regulatory authorities, or auditors upon appropriate request. The designated backup to the CCO is responsible for reviewing and monitoring
the personal securities transactions of the CCO, and for assuming the responsibilities of the CCO in her absence.

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Every Access Person must report to the CCO all Reportable Accounts currently open at the time of his/her
initial employment, and any new Reportable Account (this includes any account belonging to Family Members) opened, including the name
of the bank or brokerage, the account number, and date the account was opened, and must disclose the new Reportable Account with his/her
quarterly transaction report. Information reported in StarCompliance or on Exhibit A must be current within at least 45 days of the date
of his/her employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Every Access Person must report to the CCO of the Firm any/all Reportable Account(s) and any/all personal
Securities holdings (this includes any account(s) or holdings belonging to Family Members) at the time of his/her initial employment with
the Firm. A report must be made through StarCompliance or the designated form, Exhibit A, *Initial Report of Access Persons*, with
account statements attached containing the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Name and principal amount of the Reportable Security, ticker or cusip, share quantity, bond quantity,
interest rate, and/or maturity date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Name and account number of the Reportable Account where the Reportable Security is held;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Name of any broker, dealer, or bank with which the Access Person maintains an account in which any Reportable
Securities are held for the Access Person's direct or indirect benefit (account statements may be attached); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The date the Access Person submits the report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Every Access Person must report to the CCO of the Firm the information described in Paragraph 4 of this
Section with respect to transactions in any Reportable Security in which such Access Person has, or by reason of such transaction acquires,
any direct or indirect Beneficial Ownership in the Reportable Security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Quarterly transaction reports must be made no later than thirty days after the end of the calendar quarter
in which the transaction was executed. Every Access Person is required to submit a report for all periods, including those periods in
which no Reportable Securities transactions were executed. A report should be made through StarCompliance, or the designated form, Exhibit
C, *Quarterly Report of Access Persons*, account statements may be attached to the form for reporting purposes, containing the following
information:

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Reportable Security name, ticker and/or cusip, interest rate, maturity date, the share quantity, bond
quantity, and the principal amount of each Reportable Security transacted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The nature of the transaction (i.e., purchase or sale);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The price at which the transaction was executed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The name of the broker, dealer or bank with or through whom the transaction was executed. Trade confirmations
of all personal transactions and copies of periodic Reportable Account statements may be attached to Exhibit C to fulfill the reporting
requirement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. The name of the broker, dealer, or bank with whom the Access Person established a new Reportable Account
during the period and the date the account was established;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The date of the transaction(s) and, if different, the date that the report is submitted by the Access
Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Every Access Person must report to the CCO all Political Contributions (this includes contributions made
by Family Members) described in Section III.C. of this Code, *Restrictions for Access Persons*. made during the quarter. A report
should be made using StarCompliance or Exhibit E, *Political Contribution Pre-Clearance Form*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Every Access Person should report Gifts accepted or given, and/or Business Entertainment as a provider
or participant, using StarCompliance or the *Gift & Entertainment Report*. Gifts and Entertainment must be reported monthly or
upon each occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. A member of the compliance team or the CCO shall periodically review the reports provided by the Firm's
Access Persons. Review will include personal transactions and brokerage activity in StarCompliance, personal brokerage statements and
holdings, and Political Contributions, among other things.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **Conflict of Interest.** Every Access Person must notify the CCO of any personal conflict of interest
relationship which may involve the Firm's clients, such as the existence of any economic relationship between their transactions
and Reportable Securities held or to be acquired by any client's account. Such notification shall occur in the pre-clearance process
or immediately upon becoming aware of the conflict.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. The CCO must implement and enforce this Code, maintain copies of the Code, keep records of Code violations,
and maintain records of Access Persons' reports as required by the Code.

![](img004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. A designated member of the firm serves as the backup to the Chief Compliance Officer. The designated member reviews and signs-off on the CCO's personal reports required under the Code and Compliance Manual. Other compliance personnel may be designated to perform
certain functions of the CCO. In the absence of the CCO, the designated backup to the CCO may perform all duties of
the CCO as defined in the Code and must report to the CCO any disclosed conflicts or violations that may have occurred in her absence.

VI. CCO's Authority and Duties

The Firm's CCO has a fiduciary duty to the Firm's clients and to Barrow Hanley and is responsible for enforcing and monitoring this Code. The CCO is authorized to grant reasonable exceptions to the provisions and prohibitions of this Code, as permitted by law, and when such exceptions do not conflict with a client's interests.

VII. Reporting of Violations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Any Access Person of the Firm who becomes aware of a violation of (i)
this *Code of Ethics and Conduct*, (ii) the *Compliance Policies and Procedures,* (iii) the *Governing Policies*, (iv)
the *IT Security Policies & Procedures*, or (v) any other internal policies or procedures, must promptly report such violation
to the Firm's CCO or the CEO. This reporting requirement includes self-reporting when an employee discovers he/she has violated
an internal policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Firm's CCO must report to the Firm's Board of Managers all material violations of this
Code, the *Compliance Policies and Procedures*, the *Governing Policies*, or other internal controls. Material violations may
be reported to the CCO of any Managed Fund client, as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The CCO and CEO will consider reports made to the Board and determine what sanctions, if any, should be
imposed.

VIII. Reporting to the Board of Managers

Upon request, the Firm's CCO will prepare an annual report relating to this Code to the Boards of Managed Funds. Such annual report will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Summarize existing procedures concerning personal investing and any changes in the procedures made during
the past year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Identify any violations requiring significant remedial action during the past year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Identify any recommended changes in the existing restrictions or procedures based upon the Firm's
experience under the Code, evolving industry practices, or developments in applicable laws or regulations.

![](img004.jpg)

**IX. Sanctions**

This Code provides disciplinary measures for violations, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Upon discovering a violation of this Code by an Access Person or Family Member, the CCO may impose sanctions
as deemed appropriate, including, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Disgorgement: The Firm generally requires that profits realized on transactions made in violation of the
Code's procedures be disgorged. A charity shall be selected by the Firm to receive any disgorged or relinquished amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Extended Holding Period: Any security purchased during the black-out period may be prohibited from being
sold for six months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Unwinding the transaction: Purchases or sales made during a black-out period may be required to be reversed
and any profit may be disgorged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Pay-to-Play Rule imposes a two-year ban on an adviser's ability to receive compensation for
advisory services if the Firm or certain of its Covered Associates makes certain Political Contributions to a State or Local Official
over the *de minimus* amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. For sanctions imposed, a memo of correction, suspension, or termination of employment will be retained
according to the Code's records retention requirement. This includes violations committed by a Family Member.

**X. Retention of Records**

This Code and the Firm's *Compliance Policies and Procedures* require all books and records related to this Code to be retained, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Code of Ethics and Conduct Records**. This Code (and prior versions in effect during the past seven
years), a copy of the reports made by each Access Person, each memorandum made by the Firm's CCO, and a record of any violation
and actions taken as a result of such violation, must be maintained by the Firm for a minimum of seven years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Political Contribution Records**. A list of: (i) all Access Persons; (ii) all government entities
to which the Firm provides or has provided investment advisory services or which are or were investors in any covered investment pool
to which the Firm has provided services in the past five years; (iii) all direct or indirect Political Contributions made by any Access
Person to an official of a Government Entity, or direct or indirect payments to a political party of a state or political subdivision
thereof, or to a PAC; and (iv) the name and business address of each regulated Person to whom the Firm provides or agrees to provide,
directly or indirectly, payment to solicit a

![](img004.jpg)

Government Entity for investment advisory services on its behalf. Records relating to Political Contributions must be listed in chronological order and must indicate: (i) the name and title of each contributor; (ii) the name and title of each recipient; (iii) the amount and date of each Political Contribution; and (iv) whether any such Political Contribution was the subject of the exception for returned Political Contributions.

![](img004.jpg)

![](bah001.jpg)

**Exhibits**

*Exhibit A* – Initial Report of Access Persons

*Exhibit B* – Annual Report of Access Persons

*Exhibit C* – Quarterly Transactions Report of Access Persons

*Exhibit D* – Personal Reportable Securities Transaction Pre-Clearance Form of Access Persons

*Exhibit E* – Personal Political Contribution Pre-Clearance Form of Access Persons

*Exhibit F* – List of Reportable Funds of Access Persons

![](img004.jpg)

![](bah001.jpg)

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Initial Report of Access Persons**

To the Chief Compliance Officer of Barrow Hanley Global Investors ("Barrow Hanley"), I certify:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I acknowledge receipt of the *Code of Ethics and Conduct* for Barrow Hanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I recognize that I am subject to Barrow Hanley's Code as an Access Person and have read, understood, and will follow the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as noted below, I have no knowledge of the existence of any personal conflict of interest relationship which may involve the Firm, such as any economic relationship between my transactions and Securities held or to be acquired by Barrow Hanley or any of its portfolios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. As of the date below I and/or a Family Member had a direct or indirect ownership in the following Reportable Securities (*brokerage or financial statements may be attached*):

---

| | | | |
|:---|:---|:---|:---|
| **security name/type/ticker/cusip<br> interest rate & maturity date** | **number of shares** | **principal value** | **type of interest (direct or indirect)** |

---

![](img004.jpg)

Exhibit A

![](bah001.jpg)

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Initial Report of Access Persons**

*(Continued)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. I and/or a Family Member have the following Reportable Accounts open and have directed the bank or brokerage to send duplicate confirmations and statements to Barrow Hanley:

---

| | |
|:---|:---|
| **name of firm** | **type of interest<br> (direct or indirect)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. I and/or a Family Member have made the following Political Contributions in the previous 2 years:

---

| | | |
|:---|:---|:---|
| **name of candidate** | **date of contribution** | **type of political activity/<br> contribution** |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Date: | &nbsp;&nbsp;Signature: |  |
|  | &nbsp;&nbsp;Print Name: |  |
|  | &nbsp;&nbsp;Title: |  |
|  | &nbsp;&nbsp;Employer: | &nbsp;&nbsp;**Barrow Hanley Global Investors** |
| &nbsp;&nbsp;Date: | &nbsp;&nbsp;Signature: |  |
|  |  | &nbsp;&nbsp;Firm's CCO |

---

![](img004.jpg)

Exhibit A

![](bah001.jpg)

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Annual Report of Access Persons**

To the Chief Compliance Officer of Barrow Hanley Global Investors, ("Barrow Hanley"), I certify:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. That I am subject to the Code as an Access Person, I have read, understood, and agree to follow the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. During the year ended December 31, 20___, I have complied with the reporting requirements of the Code regarding personal transactions that I, and/or a Family Member, have executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. I have not disclosed confidential information of the Firm to any Persons outside, or inside, Barrow Hanley or PPT, except where it was required for the execution of the Firm's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Except as noted below, I have no knowledge of the existence of any personal conflict of interest relationship which may involve the Firm, such as any economic relationship between my transactions and securities held or to be acquired by Barrow Hanley or any of its portfolios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. During the year I have abided by the requirements of Barrow Hanley's *Code of Ethics and Conduct*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. As of December 31, 20___, I and/or a Family Member had a direct or indirect Beneficial Ownership in the following Reportable Securities:

---

| | | | |
|:---|:---|:---|:---|
| **security name/type/ticker/cusip<br> interest rate & maturity date** | **number of shares** | **principal value** | **type of interest (direct or indirect)** |

---

![](img004.jpg)

Exhibit B

![](bah001.jpg)

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Annual Report of Access Persons**

*(Continued)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. I and/or a Family Member have the following Reportable Accounts open, and I have directed the bank or brokerage firm to send duplicate confirmations and statements to Barrow Hanley:

---

| | |
|:---|:---|
| **name of firm** | **type of interest<br> (direct or indirect)** |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Date: | &nbsp;&nbsp;Signature: |  |
|  | &nbsp;&nbsp;Print Name: |  |
|  | &nbsp;&nbsp;Title: |  |
|  | &nbsp;&nbsp;Employer: | &nbsp;&nbsp;**Barrow Hanley Global Investors** |
| &nbsp;&nbsp;Date: | &nbsp;&nbsp;Signature: |  |
|  |  | &nbsp;&nbsp;Firm's CCO |

---

![](img004.jpg)

Exhibit B

![](bah001.jpg)

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Quarterly Transactions Report of Access Persons**

**For the Calendar Quarter Ended:<u> </u>**

To the Chief Compliance Officer of Barrow Hanley Global Investors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. During the quarter identified above, the following transactions were made in Reportable Securities and are required to be reported under the Barrow Hanley *Code of Ethics and Conduct*:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **security name/type/ticker/cusip<br> interest rate & maturity date** | **date of transaction** | **number of shares** | **dollar amount of transaction** | **nature of transaction**<br> (Purchase, Sale, Other) | **price** | **broker/<br> dealer or bank name** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. During the quarter identified above, the following Reportable Accounts were opened with direct or indirect beneficial ownership and are required to be reported under the Code.

---

| | | |
|:---|:---|:---|
| **name of firm** | **type of interest<br> (direct or indirect)** | **date account opened** |

---

![](img004.jpg)

Exhibit C

![](bah001.jpg)

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Quarterly Transactions Report of Access Persons**

**For the Calendar Quarter Ended:<u> </u>**

*(Continued)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. During the quarter identified above, the following Political Contributions were made, and are required to be reported under the Code.

---

| | | |
|:---|:---|:---|
| **name of candidate** | **date of contribution** | **type of political activity/<br> contribution** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Except as noted below, I have no knowledge of the existence of any personal conflict of interest relationship which may involve the Firm, such as any economic relationship between my transactions and securities held or to be acquired by the Firm or any of its portfolios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. During the quarter I have abided by the requirements of Barrow Hanley's *Code of Ethics and Conduct*.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Date: | &nbsp;&nbsp;Signature: |  |
|  | &nbsp;&nbsp;Print Name: |  |
|  | &nbsp;&nbsp;Title: |  |
|  | &nbsp;&nbsp;Employer: | &nbsp;&nbsp;**Barrow Hanley Global Investors** |
| &nbsp;&nbsp;Date: | &nbsp;&nbsp;Signature: |  |
|  |  | &nbsp;&nbsp;Firm's CCO |

---

![](img004.jpg)

Exhibit C

![](bah001.jpg)

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Personal Reportable Securities Transaction Pre-Clearance Form of Access Persons**

**(See Code of Ethics and Conduct, V. Compliance Procedures, Section C.)**

To the Chief Compliance Officer of Barrow Hanley Global Investors:

Pre-clearance is requested for the following proposed transactions:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **security name/type/ticker/cusip<br> interest rate & maturity date** | **number<br> of<br> shares** | **dollar amount<br> of transaction** | **nature<br> of<br> transaction**<br> (Purchase, Sale, Other) | **price**<br> (or Proposed Price) | **broker<br> /dealer<br> or bank through<br> whom effected** | **authorized<br>yes no** |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Date: | &nbsp;&nbsp;Signature: |  |
|  | &nbsp;&nbsp;Print Name: |  |
|  | &nbsp;&nbsp;Title: |  |
|  | &nbsp;&nbsp;Employer: | &nbsp;&nbsp;**Barrow Hanley Global Investors** |
| &nbsp;&nbsp;Date: | &nbsp;&nbsp;Signature: |  |
|  |  | &nbsp;&nbsp;Firm's CCO |

---

![](img004.jpg)

Exhibit D

![](bah001.jpg)

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Personal Political Contribution Pre-Clearance Form of Access Persons**

**(See Code of Ethics and Conduct, III. Procedures for Access Persons, Section C.2)**

To the Chief Compliance Officer of Barrow Hanley Global Investors:

Pre-clearance is requested for the following proposed Political Contribution(s):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **name of candidate** | **amount** | **state and county of election** | **what office is candidate seeking?** | **is covered person eligible to vote for candidate?** | **authorized<br>yes no** |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Date: | &nbsp;&nbsp;Signature: |  |
|  | &nbsp;&nbsp;Print Name: |  |
|  | &nbsp;&nbsp;Title: |  |
|  | &nbsp;&nbsp;Employer: | &nbsp;&nbsp;**Barrow Hanley Global Investors** |
| &nbsp;&nbsp;Date: | &nbsp;&nbsp;Signature: |  |
|  |  | &nbsp;&nbsp;Firm's CCO |

---

![](img004.jpg)

Exhibit E

![](bah001.jpg)

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**List of Reportable Funds of Access Persons**

**(See Code of Ethics and Conduct, V. Compliance Procedures, Section F.)**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**U.S. Registered Funds – 21** | &nbsp;&nbsp;**Non-U.S. Registered Funds – 8** |
| &nbsp;&nbsp;American Beacon Balanced Fund | &nbsp;&nbsp;*Australia* |
| &nbsp;&nbsp;American Beacon Diversified Fund | &nbsp;&nbsp;Barrow Hanley Global Equity Trust |
| &nbsp;&nbsp;American Beacon Large Cap Value Fund | &nbsp;&nbsp;Colonial First State Investments Ltd - |
| &nbsp;&nbsp;American Beacon Mid Cap Value Fund | &nbsp;&nbsp; Commonwealth Global Shares Fund 5 |
| &nbsp;&nbsp;American Beacon Small Cap Value Fund<br> Barrow Hanley Emerging Markets Value Fund<br> Barrow Hanley International Value Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;Brinker - Destinations International Equity Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;Edward D. Jones - Bridge Builder Large Value Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;Equitable - 1290 VT Equity Income Portfolio | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;GuideStone Value Equity Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;MassMutual Fundamental Value Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;MassMutual Small Cap Value Equity Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;MML Income & Growth Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;Principal LargeCap Value III Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;Principal Overseas Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;Timothy Plan Defensive Strategies Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;Timothy Plan Fixed Income Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;Timothy Plan Growth & Income Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;Timothy Plan High Yield Bond Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;Touchstone Value Fund | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
|  | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
|  | &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |
| &nbsp;&nbsp;Perpetual Global Share Fund<br> Perpetual Select International Share Fund<br>*Canada*<br> Integra U.S. Value Growth Fund<br> Leith Wheeler Emerging Markets Equity Fund<br>*Ireland*<br> Old Mutual Value Global Equity Fund<br>*United Kingdom*<br> F&C Investment Trust plc<br>**Non-Registered Funds – 3**<br> *Cayman Islands*<br> EQ Offshore Aggressive Multimanager Fund<br> EQ Offshore Conservative Multimanager Fund<br> EQ Offshore Moderate Multimanager Fund |  |

---

*As of January 1, 2022*

![](img004.jpg)

Exhibit F

![](bah001.jpg)

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**List of Reportable Funds of Access Persons**

**(See Code of Ethics and Conduct, V. Compliance Procedures, Section F.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(Continued)*

**Trillium Advised and Sub-Advised Registered Funds**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund Name** | **Share Class** | **Symbol** | **Domicile** | **Role** |
| Green Century Balanced Fund | Retail | GCBLX | US | Sub-Advisor |
| Green Century Balanced Fund | Institutional | GCBUX | US | Sub-Advisor |
| JHF ESG Large Cap Core Fund | A | JHJAX | US | Sub-Advisor |
| JHF ESG Large Cap Core Fund | C | JHJCX | US | Sub-Advisor |
| JHF ESG Large Cap Core Fund | I | JHJIX | US | Sub-Advisor |
| JHF ESG Large Cap Core Fund | R6 | JHJRX | US | Sub-Advisor |
| Trillium ESG Global Equity Fund | Retail | PORTX | US | Advisor |
| Trillium ESG Global Equity Fund | Institutional | PORIX | US | Advisor |
| Trillium ESG Global Equity Fund | A | PER2095AU | Australia | Sub-Advisor |

---

As of December 31, 2021

![](img004.jpg)

Exhibit F

## Ex-99.(P)(6)

**Exhibit 99.(p)(6)**

**WCM Investment Management, LLC**

**CODE OF ETHICS**

*A copy of this Code of Ethics is maintained in WCM Document Library and Schwab Compliance Technologies ("<u>Schwab CT</u>") and is accessible to each Supervised Person of WCM Investment Management, LLC ("WCM") for reference. This Code is the property of WCM and its contents are confidential.*

**WCM Investment Management, LLC**

**281 Brooks Street**

**Laguna Beach, CA 92651**

**949.380.0200** **Reviewed and adopted: May 31, 2022**

I. STATEMENT
 OF BUSINESS ETHICS OF WCM INVESTMENT MANAGEMENT ("WCM") 1

II. ANTI-FRAUD
 AND FIDUCIARY OBLIGATION 1

III. ANTI-CORRUPTION
 AND BRIBERY 2

A. Foreign Corrupt Practices
 Act ("FCPA") 2

B. WCM's Policy 2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Supervised Persons 3

2. Third Parties 3

3. Government officials 3

4. Facilitation payments 4

5. Violations 4

IV. INITIAL/ANNUAL
 ACKNOWLEDGEMENTS 4

V. GENERAL
 STANDARDS OF CONDUCT AND WCM PROCEDURES 5

A. Use of WCM Funds or Property 5

1. Personal Use of WCM Funds or Property 5

2. Payments to Others 5

3. Improper Expenditures 5

B. Conflicts of Interest
 and WCM Opportunities 5

1. Outside Business Activities and Interest
 in Competitors, Clients or Suppliers 6

2. Charitable Contributions 7

3. Political Contributions 7

4. Interest in Transactions 10

5. Acting as a Registered Representative
 of a Broker-Dealer 10

6. Diversion of WCM Business or Investment
 Opportunity 10

VI. GENERAL
 STANDARDS OF CONDUCT IN DEALING WITH CLIENTS AND PROSPECTIVE CLIENTS 10

A. Fair and Equitable Treatment
 of Clients 10

B. No Guarantees Against
 Loss 10

C. No Guarantees or Representations
 as to Performance 10

D. No Legal or Tax Advice 10

E. No Sharing in Profits
 or Losses 11

F. No Borrowing From or Lending
 To a Client 11

i

G. Supervised persons May
 Not Act as a Custodian of a Client 11

H. Orders May Not Be Placed
 Through Unlicensed Broker-Dealers or Agents 11

I. Executing Transactions
 or Exercising Discretion Without Proper Authorization 11

VII. PROTECTION
 OF MATERIAL, NONPUBLIC AND OTHER CONFIDENTIAL INFORMATION AND PREVENTION OF INSIDER TRADING AND TIPPING 11

A. Need for Policy 11

B. General Policies and Procedures
 Concerning Insider Trading and Tipping 12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. "Material" 12

2. "Nonpublic" 13

3. "Advisory Information" 13

C. Prohibitions 13

D. Protection of Material,
 Nonpublic Information 13

E. Procedures to Safeguard
 Material, Nonpublic Information 14

F. Protection of Other Confidential
 Information 15

G. Procedures to Safeguard
 Other Confidential Information 15

VIII. PROTECTION
 OF CONFIDENTIAL INFORMATION CONCERNING CLIENT RECOMMENDATIONS, ADVICE, OR TRADING AND "CHINESE WALL" PROCEDURES 15

A. Designation of Advisory
 Persons 16

B. Obligations of Advisory
 Persons 16

C. General Policy Concerning
 Non-Advisory Persons 16

D. Monitoring Compliance
 with Insider Trading and Tipping Policies and Procedures and Effectiveness of "Chinese Wall" Procedures 16

IX. RULES
 GOVERNING PERSONAL SECURITIES ACCOUNTS, HOLDINGS, AND TRANSACTIONS BY WCM ACCESS PERSONS 17

A. Who is Covered by These
 Requirements 17

B. What Accounts and Transactions
 Are Covered 17

C. What Securities are Covered
 by These Requirements ("Reportable Securities") 18

D. What Transactions are
 Prohibited by these Requirements 18

1. Front-Running or Scalping 18

2. Short Sales of a Security Held by
 a Client 18

3. Use of Confidential or Material, Nonpublic
 Information 18

E. Personal Securities Transactions
 Which Must Be Pre-Cleared 18

ii

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Obtaining Pre-Clearance 20

G. Identification of Securities Accounts
 and Reports of Securities Holdings 20

H. Reporting of Securities Transactions 21

I. Confidentiality of Personal Securities
 Information 22

J. Addressing Personal Trading Conflicts
 with Advisory Persons 22

K. Waivers 23

X. REPORTING
 TO THE MUTUAL FUND BOARD 24

iii

**Code of Ethics**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** **STATEMENT OF BUSINESS ETHICS OF WCM INVESTMENT MANAGEMENT ("WCM")** 

WCM is committed to maintaining the highest legal and ethical standards in the conduct of our business. We have built our reputation on client trust and confidence in our professional abilities and our integrity. As fiduciaries, we place our clients' interests above our own. Meeting this commitment is the responsibility of WCM and each and every one of our Supervised Persons.

Failure to comply with this policy may result in significant civil and criminal penalties, costly legal fees, and damage to the reputation of the Firm and the individuals involved and cause disciplinary action against such individuals, up to and including termination.

The Compliance Team is responsible for investigating any potential violations, discussing such violations with any supervised person believed to have committed such a violation, and recommending an appropriate sanction to the Leadership Team. In consultation with legal counsel, the Leadership Team will determine the appropriate sanction and have responsibility to affect the violative conduct.

Any capitalized terms used but not defined in this Code of Ethics will have the meanings assigned to them by the applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II.** **ANTI-FRAUD AND FIDUCIARY OBLIGATION** 

WCM is <u>registered as an investment adviser with the U.S. Securities and Exchange Commission</u> (the "SEC") and has made a notice filing in its home state of California. It is WCM's policy to notice file in all 50 states. In conducting WCM's investment advisory business, WCM and its Supervised Persons must comply at all times with applicable federal securities laws, including the provisions of the <u>Investment Advisers Act of 1940</u>, as amended (the "Advisers Act"), the rules under the Advisers Act and applicable provisions and rules under the laws of the various states where WCM does business or has clients. In addition, when managing accounts of employee benefit plans subject to the <u>Employee Retirement Income Security Act of 1974</u>, as amended ("ERISA") and Individual Retirement Accounts, WCM must comply with all applicable provisions of ERISA, the <u>Internal Revenue Code of 1986</u>, as amended, and the rules under those laws.

As a registered investment adviser, WCM and its Supervised Persons also have fiduciary and other obligations to clients. WCM's fiduciary duties to its clients require, among other things, that WCM: (i) render disinterested and impartial advice; (ii) make suitable recommendations to clients in light of their needs, financial circumstances and investment objectives; (iii) exercise a high degree of care to ensure that adequate and accurate representations and other information about securities are presented to clients; (iv) have an adequate basis in fact for any and all recommendations, representations and forecasts; (v) refrain from actions or transactions that conflict with interests of any client, unless the conflict has first been disclosed to the client and the client has (or may be considered to have) waived the conflict;and (vi) treat all clients fairly and equitably.

1 WCM Code of Ethics

A breach of any of the above duties or obligations may, depending on the circumstances, expose WCM and its Supervised Persons involved, to SEC and state disciplinary actions and to potential criminal and civil liability, as well as subject the Supervised Person to WCM sanctions up to and including termination of employment. All Supervised Persons are required to promptly report violations of this Code of Ethics to the Chief Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III.** **ANTI-CORRUPTION AND BRIBERY** 

As a global investment adviser, WCM is presented with the unique challenge of trying to observe local business customs while still complying with applicable U.S. and other laws prohibiting corruption. The U.S. Foreign Corrupt Practices Act ("FCPA") and other anti-corruption laws prohibit any payment or offer of payment to a "foreign official" for the purpose of influencing that official to assist in obtaining or retaining business for a company. WCM has established this policy to ensure that all Supervised Persons of the Firm are aware of the FCPA and engage in ethical and legal practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Foreign Corrupt Practices Act ("FCPA")

The FCPA prohibits any officer, agent, or Supervised Person of the Firm from directly or indirectly paying or giving, offering or promising to pay, giving or authorizing or approving such offer or payment, of any funds, gifts, services or anything else of any value to any foreign official or other person (each, a "Covered Person") for the purpose of obtaining business, favorable treatment, or other commercial benefits, whether by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• influencing
 any act or decision of the Covered Person in his official capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inducing
 the Covered Person to act or not act in violation of his lawful duty; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inducing
 the Covered Person to use his influence to that end with a foreign government or instrumentality

The same prohibition applies to a Covered Person's agent, intermediary (including, for example, a Covered Person's friend, relative, business or law firm), or other person while knowing that all or a portion thereof will directly or indirectly be forwarded to a Covered Person for such purpose.

For purposes of this Anti-Corruption and Bribery policy, a "Covered Person" is any foreign official including, without limitation, any officer or employee of any foreign government or any governmental department, agency, or instrumentality (e.g., a central bank) or any government-owned or controlled enterprise or any person acting in an official capacity for or on behalf of any such government, department, agency, instrumentality, or enterprise). It also includes any foreign political party, party official or candidate for political office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. WCM's Policy

Bribery and corruption are not only against WCM's values, they are illegal and can expose both the employee and the firm to fines and penalties, including imprisonment and reputational damage.

2 WCM Code of Ethics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Supervised Persons** 

WCM strictly prohibits bribery and other corrupt practices. The firm, nor its Supervised Persons, will seek to influence others, either directly or indirectly, by offering, promising, giving, or authorizing the giving or receiving of bribes or kickbacks, no matter how small. Supervised persons and representatives of WCM are expected to decline any opportunity which would place our ethical principles and reputation at risk. While certain laws apply only to bribes of government officials (domestic and foreign; see Political Contributions Policy), this policy applies to all dealings including non-government business partners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Third Parties

WCM and its Supervised Persons cannot avoid liability by using a third party to give or receive a bribe. Third parties representing and/or acting on behalf of WCM are expected to comply with our Anti-Bribery and Foreign Corruption Policy. In some jurisdictions, WCM can be convicted of a criminal offense if it fails to prevent a bribery carried out on its behalf by a third party, even if no one in the Firm had actual knowledge of the bribe. Therefore, whenever WCM seeks to engage a third party in which the third party may interact with a Government Official for or on behalf of WCM, the following guidelines apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Due diligence should be performed to ensure that the third party is a bona fide and legitimate
entity, is qualified to perform services for which it will be retained, and maintains standards consistent with the legal, regulatory,
ethical, and reputational standards of the Firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Agreements with third parties must be in writing and should contain provisions related to
the following, based on corruption risk present in the third-party relationship:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o A
 representation that the third party will remain in compliance with all relevant anti-corruption
 laws, including the FCPA; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o A
 provision that requires the third party to respond to reasonable requests for information
 from the Firm regarding the work performed under the agreement and related expenditures by
 the third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Government officials

Sales to Government Officials or government entities may present increased anti-corruption risk. Where WCM sells investment products or services to Government Officials or entities, such as public pensions, other state-owned financial institutions, or government affiliated institutions, the sales/marketing efforts related to these government clients should be clearly documented. As noted above, any expenditures made in connection with such business (entertainment, travel, etc.) must not be for any improper purpose and must comply with local law. Laws and regulations are strict when dealing with Government Officials. (For example, reasonable corporate hospitality that is acceptable with other business associates might not be allowable when government officials are involved.)

***Before such expenses are incurred, Supervised Person must obtain prior approval from the Compliance Team.***

A Government Official is any:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• individual elected or appointed to a governmental entity;

3 WCM Code of Ethics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• official or employee of a government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• official
 or employee of a company wholly or partially controlled by a government (such as state-owned
 companies);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• candidate for political office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• political party or official of a political party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• person
 acting in an official capacity for any of the above regardless of rank or position.

The definition of what could constitute a bribe to a Government Official is broad and can occur even when the benefit being offered is small, such as gifts, entertainment and even business meals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Facilitation payments

"Facilitation or grease payments" are payments that facilitate a normal governmental function, such as to expedite processing paperwork. While these types of payments may be accepted as "a cost of doing business" in some cultures, they are illegal and counter to our values.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Violations

Supervised persons and representatives of WCM should seek clarification on any questions or concerns regarding activities under consideration or the interpretation of any law. If you are offered a bribe from a person or entity doing business with or seeking to do business with WCM, report it immediately to the Compliance Team.

Failure to comply with this policy may result in significant civil and criminal penalties, costly legal fees, and damage to the reputation of the Firm and the individuals involved and cause disciplinary action against such individuals, up to and including termination.

Actual or potential violation of the anti-bribery or foreign corruption laws of this policy by the Firm, or another Supervised Person, must promptly be report to the Compliance Team.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.** **INITIAL/ANNUAL ACKNOWLEDGEMENTS** 

Supervised persons should keep this Code of Ethics ("COE") available for easy reference. A copy of the COE is given to each Supervised Person and is maintained in the WCM Document Library and within Schwab Compliance Technologies ("<u>Schwab CT</u>"). Each Supervised Person will, before starting to work at WCM and each year thereafter, read this COE and acknowledge that they have reviewed and understand it, and will adhere to the COE by completing the Annual Acknowledgement via Schwab CT. From time to time, the COE will be revised or supplemented. The Chief Compliance Officer is responsible for providing each Supervised Person with a revised copy of this COE when material changes have occurred.

Each year, Supervised Persons must also complete the Disciplinary History questionnaire via Schwab CT, which requests information about whether the Supervised Person has been subject to any disciplinary event, that is, a criminal, civil and/or regulatory action by a U.S. or foreign court, military court or regulatory or self-regulatory body. The employment of any person who is subject to such a reportable disciplinary event might, absent appropriate

4 WCM Code of Ethics

disclosures or specific relief from the SEC, tarnish WCM's reputation, jeopardize business relationships and opportunities for both WCM and its personnel or expose WCM itself to potential disciplinary sanctions or disqualifications. Accordingly, a Supervised Person must notify the Compliance Team immediately if he or she becomes aware of anything that could result in a change in any of this information. Failure to accurately complete the questionnaire or to notify the Compliance Team of changes to information relating to disciplinary actions may subject a Supervised Person to disciplinary action or be grounds for dismissal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V.** **GENERAL STANDARDS OF CONDUCT AND WCM PROCEDURES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Use of WCM Funds or Property** 

WCM's policy is to require each Supervised Person to respect the funds and property belonging to WCM, to limit the personal use of such funds or property, and to prohibit questionable or unethical disposition of WCM funds or property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Personal Use of WCM Funds or Property** 

No Supervised Person may take or permit any other Supervised Person to take, for his personal use, any funds or property belonging to WCM. Misappropriation of funds or property is theft and, in addition to subjecting a Supervised Person to possible criminal and civil penalties, will result in a WCM disciplinary action up to, and including, dismissal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Payments to Others** 

No WCM funds or property may be used for any unlawful or unethical purpose, nor may any Supervised Person attempt to purchase privileges or special benefits through payment of bribes, kickbacks or any other form of "payoff." Customary and normal courtesies in conformance with the standards of the industry are allowable except where prohibited by applicable laws or rules. *(See following section on* "<u>Anti-Corruption and Bribery</u>," "<u>Gifts and Entertainment</u>," and "<u>Political Contributions</u>" *for additional information.)* Particular care and good judgment are required when dealing with federal, state or local government officials to avoid inadvertent violations of government ethics rules. (Also, see following section on "<u>Political Contributions</u>" regarding important rules.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Improper Expenditures** 

No payment by or on behalf of WCM will be approved or made if any part of the payment is to be used for any purpose other than that described in the documents supporting the payment. Records will be maintained in reasonable detail that accurately and fairly reflect the transactions they describe and the disposition of any funds or property of WCM.

Any questions concerning the propriety of any use of WCM funds or property should be directed to the Compliance Team.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Conflicts of Interest and WCM Opportunities** 

It is not possible to provide a precise or comprehensive definition of a conflict of interest. However, one factor that is common to all conflict-of-interest situations is the possibility that a Supervised Person's actions or decisions will be affected because of actual or potential differences between or among the interests of WCM, its affiliates or clients, and/or the

5 WCM Code of Ethics

Supervised Person's own personal interests. A particular activity or situation may be found to involve a conflict of interest even though it does not result in any financial loss to WCM, its affiliates or its clients or any gain to WCM or the Supervised Person, and irrespective of the motivations of the Supervised Person involved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Outside Business Activities and Interest in Competitors, Clients or Suppliers** 

Supervised persons should avoid other employment or business activities, including personal investments that interfere with their duties to WCM, divide their loyalty, or create or appear to create a conflict of interest. In no event should any Supervised Person have any outside business activity that might cause embarrassment to or jeopardize the interests of WCM, interfere with its operations, or adversely affect his or her productivity or that of other Supervised Persons.

Each Supervised Person must pre-clear all outside business activities, for profit or non-profit. In addition, no Supervised Person or member of his or her "Immediate Family" (including any relative by blood or marriage living in the Supervised Person's household), shall serve as an officer, director, general partner, advisor, or trustee of, or have a substantial interest in or business relationship with a company (private or public), competitor, client, or supplier of WCM without the prior approval of the Chief Compliance Officer.

Any conflict that the Chief Compliance Officer determines is harmful to the interests of clients or the interests or reputation of WCM will be prohibited. The Chief Compliance Officer's determination as to whether a conflict exists or is harmful shall be conclusive.

Approval will be granted on a case-by-case basis, subject to proper resolution of potential conflicts of interest. Outside activities will be approved only if any conflict-of-interest issues can be satisfactorily resolved and all of the necessary disclosures are made on Part 2 of Form ADV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Gifts and Entertainment** 

Giving, receiving or soliciting gifts and/or entertainment ("G&E") in a business setting may create an appearance of impropriety or may raise a potential conflict of interest. Additionally, WCM is subject to G&E-related laws and restrictions as a result of being a fiduciary and acting as an investment adviser to government entities, ERISA and Taft-Hartley plans, and mutual funds.

Therefore, WCM has adopted the following policies and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Entertainment
 over $250 per person may be restricted; therefore, it must be reported via Schwab CT and
 approved by the Compliance Team.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Entertainment
 is an <u>event</u> which includes participation by both parties for the mutual building of
 a business relationship. Events, such as meals, golfing, sporting events, and the like, are
 considered commonly accepted business practices and they are usually permissible.

6 WCM Code of Ethics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gifts
 over $250 per person may be restricted; therefore, it must be reported via Schwab CT and
 approved by the Compliance Team.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Gifts
 are <u>things</u> given or received by a Supervised Person. Entertainment is considered a
 gift when the event is not attended by both parties. Charitable donations are considered
 gifts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>ANY</u> G&E to or from state or city pension plan representatives or non-U.S. government
 entities must be pre-cleared.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>ANY</u> G&E to or from ERISA or Taft-Hartley plans is prohibited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>ANY</u> G&E to or from broker-dealers executing purchases or sales for mutual funds advised
 or sub-advised by WCM is prohibited. This is required by Section 17(e)(1) of the 1940 Act,
 which prohibits WCM or its Supervised Persons from accepting any sort of compensation for
 the purchase or sale of property to or from any mutual fund WCM advises.

WCM expects that it will bear the costs of travel and lodging associated with conferences, research trips, and other business-related travel. If these costs are borne by a person or entity other than WCM, pre-approval must be sought as such travel expenses will be treated as a gift to the Supervised Person for purposes of this policy.

The Compliance Team will coordinate with WCM's Finance Team for the review and reimbursement of employee expense reports to ensure compliance with this policy. If a Supervised Person has any questions regarding what constitutes G&E or how to handle it, it is their responsibility to ask the Compliance Team.

***Note:*** *Registered Representatives of Foreside have additional requirements. Please see your Supervising Principal and Foreside Compliance Manual for more details.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Charitable Contributions** 

Charitable contributions, sponsorships and grants, including those that are solicited by business partners and Government Officials may present increased corruption risk. Proposed charitable contributions, sponsorships or grants must not be used to conceal a bribe or otherwise benefit the business partner or Government Official. Charitable contributions, sponsorships and grants should not be provided for any improper purpose. As noted above, Charitable Contributions are considered Gifts and must be reported in Schwab CT and approved by the Compliance Team.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Political Contributions** 

No Supervised Person shall make or solicit any political contribution for the purpose of obtaining or retaining advisory contracts with government entities. Contributions by a Covered Associate made to any elected official who, within two years of the contribution, is in a position to influence the retention or has legal authority to retain WCM, will result in the firm's prohibition in receiving any adviser fees from that government entity for a period of two years. Covered Associates are therefore not permitted to coordinate, or to solicit any person or political action committee to make, any:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contribution
 to an official of a government entity to which the investment adviser is providing or seeking
 to provide investment advisory services; or

7 WCM Code of Ethics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Payment
 to a political party of a State or locality where the investment adviser is providing or
 seeking to provide investment advisory services to a government entity.

For purposes of this Political Contribution policy, a Covered Associate is defined as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 general partner, managing member or executive officer of WCM, or other individual with a
 similar status or function;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 employee who solicits a government entity for WCM and person who supervises, directly or
 indirectly, such employee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 political action committee ("PAC") controlled by WCM or by any such persons described
 above.

<u>Exceptions for De Minimis Contributions</u>. Covered associates are permitted to make aggregate contributions, without triggering the two-year "time out," of up to $350 per election to an elected official or candidate for whom the Covered Associate is entitled to vote, and up to $150 per election to an elected official or candidate for whom the Covered Associate is not entitled to vote. These de minimis exceptions are available only for contributions by Covered Associates, not WCM.

<u>Exceptions for Return Contributions</u>. This exception, created to enable Advisers to cure an inadvertent political contribution made by a Covered Associate to an official for whom the Covered Associate is not entitled to vote, is available for contributions that in the aggregate, do not exceed $350 to any one official, per election. WCM must have discovered the contribution that resulted in the violation within four months of the date such contribution was made, and within 60 days after learning of such contribution, the contributor must obtain the return of the contribution.

As such, all political contributions by a Covered Associate to any official, PAC or through a third party must be pre-cleared by the Compliance Team via the Political Contribution disclosure form in Schwab CT prior to making the contribution. If and only if a contribution does not present a conflict of interest or harm WCM's ability to obtain clients will the Covered Associate be allowed to make such a contribution. Generally, contributions made by a Covered Associate to an official for whom the Covered Associate was entitled to vote at the time of the Contributions and which in the aggregate do not exceed $350 to any one official, per election, or to officials for whom the Covered Associate was not entitled to vote at the time of the Contributions and which in the aggregate do not exceed $150 to any one official, per election, will be approved.

Indirect actions by a Covered Associate that would result in a violation of the Political Contribution Rule, <u>Rule 206(4)-5</u>, if done directly, are prohibited.

8 WCM Code of Ethics

<u>Look-Back Provisions</u>. Advisers are required to maintain a list of government entities to which the Adviser provides, or has provided, advisory services in the past 5 years, but not prior to the Rules' effective date. Furthermore, the Rule's look-back requirements continue to apply to an Adviser that does not currently have any government entity clients. Consequently, an Adviser that did not previously provide advisory services to a government entity and therefore had not maintained records required under this Rule, would be required to determine whether any contributions made by the firm or its Covered Associates, and any former Covered Associates, would subject the Adviser to the two-year "time out" period prior to the Adviser accepting compensation from a new government entity client.

The two-year time out restriction will generally apply to WCM in the event that a newly hired Covered Associate has made a prohibited contribution prior to the commencement of his or her employment if the Covered Associate solicits clients for the Adviser. The ban will apply for a "look-back" period of up to two years, beginning from the date of the contribution. However, if the new Covered Associate does not solicit clients on behalf of the Adviser, the two-year ban period is reduced to a maximum of six months.

As such, all newly hired Covered Associates must report to the Compliance Team, upon employment, all political contributions made two years prior to the commencement of his or her employment.

Furthermore, the two-year or six-month ban will continue to apply to the Adviser for the duration of the ban period in the event that the Covered Associate who made the relevant contribution is no longer employed by WCM. The SEC has indicated that this 'look-forward' provision is intended to prevent a firm from channeling contributions through departing employees.

Periodically, the Compliance Team will review the list of Covered Associates, and the list of government entity clients for accuracy and compliance with the Pay-to-Play rule.

The following will be maintained by the Compliance Team for a period of five years from fiscal year end of last use, with at least two years on-site:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Names,
 titles and address (business & home) of Covered Associates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Clients
 that are government entities (past 5 years, not prior to September 13, 2010)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All
 direct and indirect contributions made by adviser and Covered Associate (in chronological
 order) indicating:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Name
 and title of each contributor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Name
 and title of each recipient

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Amount
 and date of each contribution or payment

9 WCM Code of Ethics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Whether
 subject to exception from returned contributions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Interest in Transactions** 

No Supervised Person, or member of his or her Immediate Family, shall engage in any transaction involving WCM if the Supervised Person or a member of his Immediate Family has a substantial interest in the transaction or can benefit directly or indirectly from the transaction (other than through the Supervised Person's normal compensation), except as specifically authorized in writing by the Chief Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Acting as a Registered Representative of a Broker-Dealer** 

A Supervised Person of WCM may only act as a Registered Representative of a Broker-Dealer upon prior written approval from the Chief Compliance Officer. The Chief Compliance Officer may approve such activity, only after applicable licensing requirements have been met and appropriate disclosures have been made in Parts 1, 2A and 2B of Form ADV and the individual's Form U-4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Diversion of WCM Business or Investment Opportunity** 

No Supervised Person shall acquire, or derive personal gain or profit from, any business or investment opportunity that comes to his or her attention as a result of his or her association with WCM, and in which he or she knows WCM or its clients might reasonably be expected to participate or have an interest, without first disclosing in writing all relevant facts to WCM, offering the opportunity to WCM or its clients, and receiving specific written authorization from the Chief Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VI.** **GENERAL STANDARDS OF CONDUCT IN DEALING WITH CLIENTS AND PROSPECTIVE CLIENTS** 

Supervised persons of WCM must adhere to the following standards at all times:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Fair and Equitable Treatment of Clients** 

All clients must be treated fairly and equitably. No client may be favored over another.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **No Guarantees Against Loss** 

No Supervised Person may guarantee a client against losses with respect to any securities investments or investment strategies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **No Guarantees or Representations as to Performance** 

No guarantee may be made that a specific level of performance will be achieved or exceeded. Any mention of an investment's past performance or value must include a statement that it does not necessarily indicate or imply a guarantee of future performance or value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **No Legal or Tax Advice** 

No Supervised Person may give or offer any legal or tax advice to any client regardless of whether the Supervised Person offering such advice is qualified to do so.

10 WCM Code of Ethics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **No Sharing in Profits or Losses** 

No Supervised Person may directly share in the profits or losses of a client's account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** **No Borrowing From or Lending To a Client** 

No Supervised Person may borrow funds or securities from, or lend funds or securities to, any client of WCM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.** **Supervised persons May Not Act as a Custodian of a Client** 

No Supervised Person may act as custodian of securities, money, or other funds or property of a client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H.** **Orders May Not Be Placed Through Unlicensed Broker-Dealers or Agents** 

No Supervised Person shall place an order to purchase or sell a security for a client through a broker-dealer or agent or any bank unless such broker-dealer or agent or bank is properly registered or is exempt from registration in the state in which the client resides.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** **Executing Transactions or Exercising Discretion Without Proper Authorization** 

No Supervised Person shall execute any transaction on behalf of a client or exercise any discretionary power in effecting any transaction for a client account unless WCM has (i) obtained written authority from the client and (ii) authorized the Supervised Person's execution of client transactions or exercise of discretionary authority with respect to that client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VII.** **PROTECTION OF MATERIAL, NONPUBLIC AND OTHER CONFIDENTIAL INFORMATION AND PREVENTION OF INSIDER TRADING AND TIPPING** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Need for Policy** 

WCM and its personnel have access to confidential information about clients of WCM, investment advice provided to clients, securities transactions being effected for clients' accounts and other sensitive information. In addition, from time to time, WCM or its personnel may come into possession of information that is "material" and "nonpublic" (each as defined below) concerning a company or the trading market for its securities.

It is unlawful for WCM or any of its Supervised Persons to use such information for manipulative, deceptive or fraudulent purposes. The kinds of activities prohibited include "front-running," "scalping" and trading on inside information. "Front-Running" refers to a practice whereby a person takes a position in a security in order to profit based on his or her advance knowledge of upcoming trading by clients in that security which is expected to affect the market price. "Scalping" refers to a similar abuse of client accounts, and means the practice of taking a position in a security before recommending it to clients or effecting transactions on behalf of clients, and then selling out the Supervised Person's personal position after the price of the security has risen on the basis of the recommendation or client transactions.

11 WCM Code of Ethics

Depending upon the circumstances, WCM and any Supervised Person could be at risk of violating federal securities laws for insider trading or tipping if they advise clients concerning, or execute transactions in, securities with respect to which WCM possesses material, nonpublic information ("MNPI"). In addition, WCM as a whole may be deemed to possess MNPI known by any of its Supervised Persons, unless WCM has implemented procedures to prevent the flow of that information to others within WCM.

<u>Section 204A</u> of the Advisers Act requires that WCM establish, maintain and enforce written policies and procedures reasonably designed to prevent the misuse of MNPI by WCM and its Supervised Persons. Violations of the laws against insider trading and tipping by WCM Supervised Persons can expose WCM and any Supervised Person involved to severe criminal and civil liability. In addition, WCM and its personnel have ethical and legal responsibilities to maintain the confidence of WCM's clients, and to protect as valuable assets, confidential and proprietary information developed by or entrusted to WCM.

Although WCM respects the right of its Supervised Persons to engage in personal investment activities, it is important that such practices avoid any appearance of impropriety and remain in full compliance with the law and the highest standards of ethics. Accordingly, Supervised Persons must exercise good judgment when engaging in securities transactions and when relating to others information obtained as a result of employment with WCM. If a Supervised Person has any doubt whether a particular situation requires refraining from making an investment or sharing information with others, such doubt should be resolved against taking such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **General Policies and Procedures Concerning Insider Trading and Tipping** 

WCM has adopted the following policies and procedures to: (i) ensure the propriety of Supervised Person trading activity; (ii) protect and segment the flow of material, nonpublic and other confidential information relating to client advice and securities transactions, as well as other confidential information; (iii) avoid possible conflicts of interest; and (iv) identify trades that may violate the prohibitions against insider trading, tipping, front-running, scalping and other manipulative and deceptive devices prohibited by federal and state securities laws and rules.

No Supervised Person of WCM shall engage in transactions in any securities while in possession of MNPI regarding such securities (so called "insider trading"). Nor shall any Supervised Person communicate such MNPI to any person who might use such information to purchase or sell securities (so called "tipping"). The term "securities" includes options or derivative instruments with respect to such securities and other securities that are convertible into or exchangeable for such securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **"Material"** 

The question of whether information is "material" is not always easily resolved. Generally speaking, information is "material" where there is a substantial likelihood that a reasonable investor could consider the information important in deciding whether to buy or sell the securities in question, or where the information, if disclosed, could be viewed by a reasonable investor as having significantly altered the "total mix" of information available. Where the nonpublic information relates to a possible or contingent event, materiality depends upon a balancing of both the probability that the event will occur and the anticipated magnitude of the

12 WCM Code of Ethics

event in light of the totality of the activities of the issuer involved. Common, but by no means exclusive, examples of "material" information include information concerning a company's sales, earnings, dividends, significant acquisitions or mergers and major litigation. So called "market information," such as information concerning an impending securities transaction, may also, depending upon the circumstances, be "material." **Because materiality determinations are often challenged with the benefit of hindsight, if a Supervised Person has any doubt whether certain information is "material," such doubt should be resolved against trading or communicating such information.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **"Nonpublic"** 

Information is "nonpublic" until it has been made available to investors generally. In this respect, one must be able to point to some fact to show that the information is generally public, such as inclusion in reports filed with the SEC or press releases issued by the issuer of the securities, or reference to such information in publications of general circulation such as The Wall Street Journal or other publisher.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **"Advisory Information"** 

Information concerning: (i) specific recommendations made to clients by WCM; or (ii) prospective securities transactions by clients of WCM ("Advisory Information") is strictly confidential. Under some circumstances, Advisory Information may be material and nonpublic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Prohibitions** 

In the handling of information obtained as a result of employment with WCM and when engaging in securities transactions, WCM Supervised Persons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shall
 not disclose material, nonpublic or other confidential information (including Advisory Information)
 to anyone, inside or outside WCM (including Immediate Family members), except to the Chief
 Compliance Officer or on a strict need-to-know basis and under circumstances that make it
 reasonable to believe that the information will not be misused or improperly disclosed by
 the recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shall
 refrain from recommending or suggesting that any person engage in transactions in any security
 while in possession of MNPI about that security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shall
 abstain from transactions for their own personal accounts or for the account of any client,
 in any security while in possession of MNPI regarding that security; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shall
 abstain from personal transactions in any security while in possession of Advisory Information
 regarding that security, except in compliance with the section for <u>Rules Governing Personal Securities Accounts, Holdings, And Transactions By WCM Access Persons</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Protection of Material, Nonpublic Information** 

No Supervised Person of WCM shall intentionally seek, receive or accept information that he or she believes may be material and nonpublic.

13 WCM Code of Ethics

In the event that a Supervised Person of WCM should come into possession of information concerning any company or the market for its securities that the Supervised Person believes may be material and nonpublic, **<u>it is critical</u>** that such Supervised Person refrain from either disclosing the information to others or engaging in transactions (or recommending or suggesting that any person engage in transactions) in the securities to which such information relates. The Supervised Person should notify the Compliance Team immediately and file a report in Schwab CT using the "Material Nonpublic Information" form.

On occasion, a company may, as a means to seek investors in restricted or private-placement securities issued by it, want to share material, nonpublic or other confidential information with the Firm. Such requests to "come over the wall" must be approved by the Compliance Team. The Compliance Team will put restrictions in place to prevent any inappropriate trading by the Firm or any Access Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Procedures to Safeguard Material, Nonpublic Information** 

While MNPI may be encountered in many ways, there are certain areas that present a greater risk of exposure based on WCM's business practices. One such area is WCM's use of "Expert Networks". To mitigate this risk, the Compliance Team will review and confirm the adequacy of the Expert Networks' controls for the protection and handling of MNPI prior to engaging their service. Also, the Compliance Team will track all interactions (e.g., emails, calls, meetings) between WCM and the Expert Networks. Supervised Persons are prohibited from sharing their authorized access to Expert Networks.

Another area of risk occurs when Supervised Persons meet directly with personnel of publicly and privately traded companies. The typical (and preferred) method for interaction with a company is with C-suite or Investor Relations ("IR") personnel, who are knowledgeable and have been trained regarding proper handling of MNPI. In the rare instance of interaction with anyone else at the company without the presence of C-suite or IR personnel, WCM's Supervised Person will ensure that we communicate that WCM invests in public equity markets and we are not interested in, nor looking to receive material nonpublic information about any publicly traded company.

This communication is particularly important when interacting with private company personnel as they may assume based on the private engagement that WCM does not trade in public equities. Before engaging any personnel of a privately traded company, WCM's Supervised Persons will disclose that WCM invests in public equity markets and confirm with the privately traded company that they do not have any known connections with publicly traded companies for which WCM may hold a security. If any connection is discovered, the WCM Supervised Person is prohibited from engaging any personnel in that privately traded company without the prior approval of the CCO.

If, during a phone call or meeting, a Supervised Person becomes aware of any information that he or she believes, or has reason to believe, may be MNPI – regardless of the source (e.g. clients, fund investors, consultants, etc.) – they should promptly end the call or meeting and immediately consult with the CCO as noted earlier. Again, the Supervised Person should not share such information with anyone else.

14 WCM Code of Ethics

In the event that a Supervised Person is contacted by an Expert, personnel of a publicly traded company, or industry analyst, via non-business channels (such as personal email or phone, LinkedIn, or other social media) to discuss WCM's investment-related activities, the Supervised Person must redirect the conversation to the proper business channels (WCM email or phone, Expert Network, etc.) Further communication with such parties on non-business channels is strictly prohibited.

All firm trading and personal trading by Supervised Persons is monitored for potential use of MNPI in Schwab CT. Unusual trade activity sends an alert to the CCO, who will investigate the rationale behind the trade decision, review Expert Network activity, conduct a targeted email review, and examine trading patterns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** **Protection of Other Confidential Information** 

Information relating to past, present, or future activities of WCM or clients that has not been publicly disclosed, shall not be disclosed to persons, within or outside of WCM, except within the guidelines of this policy. Supervised persons are expected to use their own good judgment in relating to others information in these areas.

In addition, information relating to another Supervised Person's medical, financial, employment, legal, or personal affairs is confidential and may not be disclosed to any person, within or outside of WCM, without the Supervised Person's consent or for a proper purpose authorized by the Chief Compliance Officer or an officer of WCM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.** **Procedures to Safeguard Other Confidential Information** 

In the handling of other confidential information, including Advisory Information, Supervised persons of WCM shall take appropriate steps to safeguard the confidentiality of such information. Although WCM's offices are not generally open to the public or unannounced visitors, Supervised Persons must still take precautions to avoid storing nonpublic personal information in plain view in potentially public areas of WCM's offices. Furthermore, Supervised Persons must remove nonpublic personal information from conference rooms, reception areas and other areas when not in use and always prior to a visit by any third party. Particular care should be exercised when nonpublic personal information must be discussed or reviewed in public places such as restaurants, elevators, taxicabs, trains or airplanes, where that information may be overheard or observed by third parties. *For more information and guidance see the Privacy Policy Compliance Procedures section of the Compliance Manual and the Information Security Program.*

15 WCM Code of Ethics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VIII.** **PROTECTION OF CONFIDENTIAL INFORMATION CONCERNING CLIENT RECOMMENDATIONS, ADVICE, OR TRADING AND "CHINESE WALL" PROCEDURES** 

WCM has adopted the following policies and procedures to limit access to Advisory Information to those Supervised Persons of WCM who have a legitimate need to know that information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Designation of Advisory Persons** 

The Chief Compliance Officer shall designate as "Advisory Persons" those of WCM's Supervised Persons who make or participate in decisions as to what advice or recommendations should be given to clients or what securities transactions should be affected for client accounts, whose duties or functions relate to the making of such recommendations or who otherwise have a legitimate need to know information concerning such matters.

All Advisory Persons are Access Persons, but not all Access Persons are necessarily Advisory Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Obligations of Advisory Persons** 

In the handling of Advisory Information, Advisory Persons shall take appropriate measures to protect the confidentiality of such information. Specifically, Advisory Persons shall refrain from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosing
 Advisory Information to anyone other than another Advisory Person, inside or outside of WCM
 (including any Supervised Person of an affiliate); except on a strict need-to-know basis
 and under circumstances that make it reasonable to believe that the information will not
 be misused or improperly disclosed by the recipient; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Engaging
 in transactions — or recommending or suggesting that any person (other than a WCM client)
 engage in transactions — in any security to which the Advisory Information relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **General Policy Concerning Non-Advisory Persons** 

As a general matter, Non-Advisory Persons of WCM should not seek or obtain access to Advisory Information. If a Non-Advisory Person of WCM should come into possession of Advisory Information, he or she should refrain from either disclosing the information to others or engaging in transactions (or recommending or suggesting that any person engage in transactions) in the securities to which such information relates. In the event that a Non-Advisory Person of WCM obtains Advisory Information, he or she should promptly notify the Chief Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Monitoring Compliance with Insider Trading and Tipping Policies and Procedures and Effectiveness of "Chinese Wall" Procedures** 

The Chief Compliance Officer or his designee shall use Schwab CT to review initial and annual holdings reports and quarterly transaction reports for Supervised Person accounts. This review is designed to: (i) ensure the propriety of the Supervised Person's trading activity (including whether pre-approval was obtained as required by the <u>Rules Governing Personal Securities Accounts, Holdings, And Transactions By WCM Access Persons)</u>; (ii) avoid possible conflict situations; and (iii) identify transactions that may violate the prohibitions regarding insider trading and manipulative and deceptive devices contained in the federal and state securities laws and SEC rules. Schwab CT maintains records of review.

The Compliance Team shall report to the Leadership Team any findings of possible irregularity or impropriety.

16 WCM Code of Ethics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IX.** **RULES GOVERNING PERSONAL SECURITIES ACCOUNTS, HOLDINGS, AND TRANSACTIONS BY WCM ACCESS PERSONS** 

The personal investing activities of all WCM personnel must be conducted in a manner to avoid actual or potential conflicts of interest with WCM's clients and WCM itself. No Supervised Person of WCM may use his or her position with WCM or any investment opportunities they learn of because of his or her position with WCM to the detriment of WCM's clients or WCM.

The following policies and procedures were adopted to meet WCM's responsibilities to clients and to comply with SEC rules. Violations may result in law enforcement action against WCM and its Supervised Persons by the SEC or state regulators and/or disciplinary action by WCM against any Supervised Person involved in the violation, including termination of employment.

All Supervised Persons should read these requirements carefully and be sure that they are understood. It is particularly important to understand and accept that these pre-clearance requirements may mean that a Supervised Person will be prohibited from purchasing or selling a particular security because of client interest in that security. This restriction on a Supervised Person's ability to sell a security can have a harsh impact on individual Supervised Persons and their Immediate Family members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Who is Covered by These Requirements** 

All Access Persons of WCM ***and members of their Immediate Family who reside in their household*** are subject to WCM's policies and procedures governing personal securities transactions, with the limited exceptions noted below. An Access Person is defined as a Supervised Person who has access to nonpublic information regarding clients' purchase or sale of securities, is involved in making securities recommendations to clients or who has access to such recommendations that are nonpublic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **What Accounts and Transactions Are Covered** 

These personal securities policies and procedures cover all personal securities accounts and transactions for which an Access Person has, or acquires, any direct or indirect beneficial ownership. For purposes of these requirements, "beneficial ownership" has the same meaning as in <u>Securities Exchange Act Rule 16a-1(a)(2)</u>. Generally, a person has beneficial ownership of a security if he or she, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares a direct or indirect financial interest in the security. ***A transaction and holding by or for the account of an Immediate Family member (living in the same home with an Access Person) is considered the same as a transaction and holding by the Access Person.***

According to SEC guidelines, the following exemption is permissible. The firm can trade securities for any of the WCM Access Person accounts as long as the securities are blocked with client trades. The securities in the trade block allocated to the Access Person are dollar-cost-averaged or settled at the worst price of the day. All Access Person trades must bear the fiduciary responsibility of putting the clients' interests first.

17 WCM Code of Ethics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **What Securities are Covered by These Requirements ("Reportable Securities")** 

All securities (and derivative forms thereof including options and futures contracts) are covered by these requirements except: (1) direct obligations of the U.S. government (e.g., treasury securities); (2) bankers' acceptances, bank certificates of deposit, commercial paper, and high quality short-term debt obligations, including repurchase agreements; (3) shares issued by money market funds; (4) shares of <u>unaffiliated</u> open-end mutual funds; (5) shares issued by unit investment trusts that are invested exclusively in one or more open-end funds; and (6) shares of Section 529 College Savings and Prepaid Tuition plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **What Transactions are Prohibited by these Requirements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Front-Running or Scalping** 

Access persons of WCM are not permitted to "front-run" any securities transaction of a client or WCM, or to "scalp" by making securities recommendations for clients with the intent of personally profiting from personal holdings of or transactions in the same or related securities, as noted in the section, <u>Protection Of Material, Nonpublic And Other Confidential Information And Prevention Of Insider Trading And Tipping</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Short Sales of a Security Held by a Client** 

No Access Person may sell short any security held in a client's account managed by WCM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Use of Confidential or Material, Nonpublic Information** 

Access person may not buy or sell any security if he or she has material, nonpublic information about the security or the market for the security obtained in the course of his or her employment with WCM or otherwise, as noted in the section, <u>Protection Of Material, Nonpublic And Other Confidential Information And Prevention Of Insider Trading And Tipping</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Personal Securities Transactions Which Must Be Pre-Cleared** 

Before placing any order to purchase or sell any security, or otherwise acquiring or disposing of a security, including participation in Initial Public Offerings ("IPO") and limited or private investments, an Access Person of WCM must pre-clear the transaction with WCM's Compliance Team.

Access Persons who have purchased or sold any private investments are required to pre-clear any subsequent investment in that issuer. However, investments in private equity or private credit funds do not require pre-clearance for each capital call once the initial investment and commitment amount have been approved.

18 WCM Code of Ethics

Pre-clearance is **<u>not</u>** required for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S.
 government securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S.
 government agency securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Municipal
 bonds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares
 of any open-end mutual funds and securities of any other registered investment company, e.g.,
 closed-end funds, exchange traded funds or unit investment trusts, <u>not affiliated with or sub-advised by</u> WCM;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• high
 quality short-term debt instruments, such as bankers' acceptances, commercial paper,
 repurchase agreements and bank certificates of deposit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• purchases
 through automatic reinvestment of dividends pursuant to a dividend reinvestment plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• involuntary
 acquisitions or dispositions of securities, such as by inheritance or court-order upon divorce;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transactions
 effected for any account or entity over which the Access Person does not have or share investment
 control, such as a "blind trust";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transactions
 in securities through an employer sponsored or other tax qualified employee benefit plan,
 such as a 401(k) plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• purchases
 or sales resulting from the exercise or assignment of options;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• purchases
 or sells in an Access Person's account which is managed and directed by WCM;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Index
 Futures, Commodity Futures, Interest Rate Futures, Index Options, Commodity Options and Interest
 Rate Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• purchases
 or sales in an intern's Immediate Family Member's account who shares the same
 household as the Access Person, except trades that are in IPOs, private placements &
 limited offerings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cryptocurrency

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• such
 other securities or transactions as may be added to this list of exceptions in writing by
 the Chief Compliance Officer.

19 WCM Code of Ethics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** **Obtaining Pre-Clearance** 

To obtain pre-clearance, an Access Person must log into Schwab CT and submit a pre-clearance form. Most requests are automatically approved or denied based on conflicts with firm trades. The CCO or member of the Compliance Team will manually pre-clear Access Persons' trades that are not able to be automatically approved. A member of the Leadership Team will pre-clear personal trades of the CCO that cannot be automatically approved by Schwab CT (i.e., require manual approval). The status of a pre-clearance request is viewable in Schwab CT under the employee section "My Pre-clearances".

A pre-clearance approval is valid until the subsequent close of the applicable market.

*Several examples:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Pre-clearance approval for a trade executed in the U.S. market expires at the subsequent close of the U.S. market (typically 4PM Eastern Time).* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Pre-clearance approval on Tuesday evening after the close of market on Tuesday is valid until the close of market on Wednesday.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Pre-clearance approval on Friday evening after the close of market on Friday is valid until the close of market on Monday (assuming the market is open on Monday.)* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Pre-clearance approval on Thursday during market hours is valid until the close of market on Thursday.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Pre-clearance approvals for a trade executed in a non-U.S. market expires at the subsequent close of that market.* 

For trades in instruments or securities that do not adhere to market hours (such as Limited Partnerships, etc.) pre-clearance approval is valid for 30 days.

Failure to follow the pre-clearance requirements places the firm at risk therefore is a consequential matter. In the event an Access Person violates the pre-clearance requirements, the Compliance Team will email them regarding the violation and copy the Leadership Team. A pattern of frequent offenses indicates a disregard for the Code and will result in disciplinary action, such as the revocation of personal trading privileges, fines, and even termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.** **Identification of Securities Accounts and Reports of Securities Holdings** 

Access persons must report all securities accounts (including securities accounts of Immediate Family members residing in the same household as the Access Person) in which the Access Person has any direct or indirect "beneficial interest," by filing a Personal Brokerage Account Disclosure in Schwab CT. These reports must be completed, as required by the Code of Ethics Rule, <u>Rule 204A-1</u>, (1) no later than 30 days after the end of each calendar quarter and (2) in the case of new Access Persons, within 10 days of the individual becoming an Access Person. The as-of date for initial reports (i.e., when an individual first becomes an Access Person) must not be older than 45 days.

20 WCM Code of Ethics

<u>Accounts **with** "reportable securities"</u>. Reports for securities accounts holding "<u>reportable securities</u>" must contain:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 title and type of security, and as applicable the exchange ticker symbol or CUSIP number,
 number of shares, and principal amount of each reportable security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 name of any broker, dealer or bank with which the Access Person maintains an account in which
 any securities are held for the Access Person's direct or indirect benefit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The
 date the Access Person submits the report.

<u>Accounts **without** "reportable securities"</u>. Reports for securities accounts holding securities excluded from the list of "<u>reportable securities</u>" requires only the name of any broker, dealer or bank with which the Access Person maintains an account and the date the Access Person submits the report.

Securities accounts linked to Schwab CT satisfy these reporting requirements for the periods in which the account is linked. If a securities account cannot be linked to Schwab CT or there is a period of time that the account is not linked, the information noted above must be manually entered into the form within Schwab CT, or, with approval, e-mailed to the Chief Compliance Officer.

These reports are reviewed by the Chief Compliance Officer or his designee. The reports of the Chief Compliance Officer are reviewed by the COO and/or his designee.

If an Access Person has no securities accounts or holdings to report, they must affirm so through a quarterly affirmation via Schwab CT.

Late reporting is considered a violation of the Code of Ethics and SEC Rule, is not acceptable and will not be tolerated by WCM. This can lead to disciplinary action against an Access Person, including possible termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H.** **Reporting of Securities Transactions** 

SEC rules impose strict requirements on WCM and its Access Persons with respect to the reporting of personal securities transactions. Access persons must submit quarterly reports of all personal securities transactions (including securities accounts of Immediate Family members residing in the same household as the Access Person) in which the Access Person has a "beneficial interest," by filing a transaction report in Schwab CT. This report must be filed no later than 30 days after the end of each calendar quarter as required by the Code of Ethics Rule, <u>Rule 204A-1</u>.

<u>Transactions of "reportable securities"</u>. Reports for transactions of "<u>reportable securities</u>" must contain:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the
 date of the transaction, the title, and as applicable the exchange ticker symbol or CUSIP
 number, interest rate and maturity date, number of shares, and principal amount of each reportable
 security involved the nature of the transaction (i.e., purchase, sale or any other type of
 acquisition or disposition);

21 WCM Code of Ethics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the
 price of the security at which the transaction was effected; the name of the broker, dealer
 or bank with or through which the transaction was effected; and the date the Access Person
 submits the report.

<u>Transactions of non-"reportable securities".</u> These transactions do not need to be reported.

Securities accounts linked to Schwab CT satisfy these reporting requirements for the periods in which the account is linked. If a securities account cannot be linked to Schwab CT or there is a period of time that the account is not linked, the information noted above must be manually entered into the form within Schwab CT, or, with approval, e-mailed to the Chief Compliance Officer.

These personal securities transaction reports will be reviewed by the Chief Compliance Officer or his designee. The reports of the Chief Compliance Officer will be reviewed by the Chairman and/or his designee.

If an Access Person has no reportable securities transactions to report, they must affirm so through a quarterly affirmation via Schwab CT.

Late reporting is considered a violation of the Code of Ethics and SEC Rule, is not acceptable and will not be tolerated by WCM. This can lead to disciplinary action against an Access Person, including possible termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** **Confidentiality of Personal Securities Information** 

Access to reports of personal securities transactions, securities holdings, securities accounts, duplicate confirmations and account statements will be restricted to the Chief Compliance Officer and such other persons as WCM may designate to assist the Chief Compliance Officer with review of the reports and pre-clearance. All such materials will be kept confidential, subject to the right of inspection by the SEC or other government agencies, outside counsel for compliance purposes, and WCM's Leadership Team.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J.** **Addressing Personal Trading Conflicts with Advisory Persons** 

WCM's compliance program seeks to provide the greatest amount of flexibility while still achieving the objective of protecting clients and following rules. Although Advisory Persons can trade in the same securities as clients, those trades are subject to the pre-clearance requirements, as mentioned above, as well as additional controls to prevent and remediate potential conflicts that might occur because of the advisory-related information Advisory Persons may have access to.

One potential conflict exists when Advisory Persons profit, or perceive to have profited, from the firm trading of our clients. WCM addresses this potential conflict by restricting Advisor Persons' trading within two weeks of a firm trade program in the same security, both after and before the firm trading occurs.

22 WCM Code of Ethics

As Advisory Person may not be aware of the exact timing of a firm trade program, an Advisory Person may receive approval to trade a certain security after submitting a preclear, only later to find out that the trade created a conflict once a firm trade program started. Rather than require an Advisory Person to reverse the trade, this policy allows the Advisory Person to maintain a position and compare their trade against the least-favored client execution (worst for front side; best for back side) in the trade program. An Advisory Person can still choose to reverse their trade instead.

**<u>Front side</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Same
 side trade

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2
 weeks (14 calendar days) before the beginning of client trading

**<u>Back side</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Opposite
 side trade

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2
 weeks (14 calendar days) after the last client trade

An Advisory Person can choose one of the following options:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Reverse
 their trade and donate profits; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Maintain
 their position and compare their execution price against worst client execution price, donating
 any profitable difference.

The procedure above aims to mitigate special conflicts that may exist with Advisory Persons trading the same securities of our clients within a window of time where the client trading may have a reasonably foreseeable impact on marketing pricing.

The Chief Compliance Officer will ensure that the appropriate corrective action is taken by the Advisory Person to neutralize the resulting conflict.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**K.** **Waivers** 

The Chief Compliance Officer may, in his discretion, after consultation with the Leadership Team, waive compliance by any person with any of the restrictions and pre-clearance requirements set forth herein, if the Leadership Team finds that such a waiver: (i) is necessary to alleviate hardship in view of unforeseen circumstances or is otherwise appropriate under all of the relevant facts and circumstances; (ii) will not be inconsistent with the purposes of WCM's policies and procedures governing personal securities transactions; (iii) will not adversely affect the interests of clients or WCM; and (iv) is not likely to permit a transaction or conduct that would violate provisions of applicable laws or rules.

Any waiver shall be documented by the Chief Compliance Officer and shall state the basis for the waiver. The Chief Compliance Officer shall promptly send a copy of the waiver to the Leadership Team and shall maintain a copy in the Compliance program folders or Schwab CT.

23 WCM Code of Ethics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X.** **REPORTING TO THE MUTUAL FUND BOARD** 

No less frequently than quarterly, the Chief Compliance Officer or his/her designee will furnish to the Board of Directors of all mutual funds managed by WCM, a written report that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Describes
 any issues arising under the Code of Ethics since the last report to the Board of Directors,
 including, but not limited to, information about material violations of the Code of Ethics,
 or procedures and sanctions imposed in response to any material violations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Certification
 that WCM has adopted procedures reasonably necessary to prevent Access Persons from violating
 the Code of Ethics.

The Firm will furnish to the Board of Directors of all mutual funds managed by WCM, a copy of the Code of Ethics and any material changes to the Code of Ethics.

24 WCM Code of Ethics

## Ex-99.Other

**Exhibit 99.Other**

**POWER OF ATTORNEY**

I, <u>Gilbert G. Alvarado</u>, Trustee of the American Beacon Funds, the American Beacon Select Funds and the American Beacon Institutional Funds Trust (collectively, the "Trusts"), hereby constitute and appoint Rosemary K. Behan, Teresa A. Oxford and Michael D. Jiang, each of them with the power to act without any other and with full power of substitution, my true and lawful attorney with full power to sign for me in my capacity as Trustee for the Trusts any Registration Statement on Form N-1A under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trusts and all instruments necessary or desirable in connection therewith, hereby ratifying and confirming my signature as it may be signed by said attorney to any and all amendments to said Registration Statements.

Pursuant to the requirements of the Securities Act of 1933, as amended, this instrument has been signed below by the following in my capacity and is effective on the 31st day of January, 2023.

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| |
|:---|
| /s/ Gilbert G. Alvarado |
| Gilbert G. Alvarado, Trustee |

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**POWER OF ATTORNEY**

I, <u>Joseph B. Armes</u>, Trustee of the American Beacon Funds, the American Beacon Select Funds and the American Beacon Institutional Funds Trust (collectively, the "Trusts"), hereby constitute and appoint Rosemary K. Behan, Teresa A. Oxford and Michael D. Jiang, each of them with the power to act without any other and with full power of substitution, my true and lawful attorney with full power to sign for me in my capacity as Trustee for the Trusts any Registration Statement on Form N-1A under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trusts and all instruments necessary or desirable in connection therewith, hereby ratifying and confirming my signature as it may be signed by said attorney to any and all amendments to said Registration Statements.

Pursuant to the requirements of the Securities Act of 1933, as amended, this instrument has been signed below by the following in my capacity and is effective on the 31st day of January, 2023.

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| |
|:---|
| /s/ Joseph B. Armes |
| Joseph B. Armes, Trustee |

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**POWER OF ATTORNEY**

I, <u>Gerard J. Arpey</u>, Trustee of the American Beacon Funds, the American Beacon Select Funds and the American Beacon Institutional Funds Trust (collectively, the "Trusts"), hereby constitute and appoint Rosemary K. Behan, Teresa A. Oxford and Michael D. Jiang, each of them with the power to act without any other and with full power of substitution, my true and lawful attorney with full power to sign for me in my capacity as Trustee for the Trusts any Registration Statement on Form N-1A under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trusts and all instruments necessary or desirable in connection therewith, hereby ratifying and confirming my signature as it may be signed by said attorney to any and all amendments to said Registration Statements.

Pursuant to the requirements of the Securities Act of 1933, as amended, this instrument has been signed below by the following in my capacity and is effective on the 31st day of January, 2023.

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| |
|:---|
| /s/ Gerard J. Arpey |
| Gerard J. Arpey, Trustee |

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**POWER OF ATTORNEY**

I, <u>Brenda A. Cline</u>, Trustee of the American Beacon Funds, the American Beacon Select Funds and the American Beacon Institutional Funds Trust (collectively, the "Trusts"), hereby constitute and appoint Rosemary K. Behan, Teresa A. Oxford and Michael D. Jiang, each of them with the power to act without any other and with full power of substitution, my true and lawful attorney with full power to sign for me in my capacity as Trustee for the Trusts any Registration Statement on Form N-1A under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trusts and all instruments necessary or desirable in connection therewith, hereby ratifying and confirming my signature as it may be signed by said attorney to any and all amendments to said Registration Statements.

Pursuant to the requirements of the Securities Act of 1933, as amended, this instrument has been signed below by the following in my capacity and is effective on the 31st day of January, 2023.

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| |
|:---|
| /s/ Brenda A. Cline |
| Brenda A. Cline, Trustee |

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**POWER OF ATTORNEY**

I, <u>Eugene J. Duffy</u>, Trustee of the American Beacon Funds, the American Beacon Select Funds and the American Beacon Institutional Funds Trust (collectively, the "Trusts"), hereby constitute and appoint Rosemary K. Behan, Teresa A. Oxford and Michael D. Jiang, each of them with the power to act without any other and with full power of substitution, my true and lawful attorney with full power to sign for me in my capacity as Trustee for the Trusts any Registration Statement on Form N-1A under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trusts and all instruments necessary or desirable in connection therewith, hereby ratifying and confirming my signature as it may be signed by said attorney to any and all amendments to said Registration Statements.

Pursuant to the requirements of the Securities Act of 1933, as amended, this instrument has been signed below by the following in my capacity and is effective on the 31st day of January, 2023.

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| |
|:---|
| /s/ Eugene J. Duffy |
| Eugene J. Duffy, Trustee |

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**POWER OF ATTORNEY**

I, <u>Claudia A. Holz</u>, Trustee of the American Beacon Funds, the American Beacon Select Funds and the American Beacon Institutional Funds Trust (collectively, the "Trusts"), hereby constitute and appoint Rosemary K. Behan, Teresa A. Oxford and Michael D. Jiang, each of them with the power to act without any other and with full power of substitution, my true and lawful attorney with full power to sign for me in my capacity as Trustee for the Trusts any Registration Statement on Form N-1A under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trusts and all instruments necessary or desirable in connection therewith, hereby ratifying and confirming my signature as it may be signed by said attorney to any and all amendments to said Registration Statements.

Pursuant to the requirements of the Securities Act of 1933, as amended, this instrument has been signed below by the following in my capacity and is effective on the 31st day of January, 2023.

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| |
|:---|
| /s/ Claudia A. Holz |
| Claudia A. Holz, Trustee |

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**POWER OF ATTORNEY**

I, <u>Douglas A. Lindgren</u>, Trustee of the American Beacon Funds, the American Beacon Select Funds and the American Beacon Institutional Funds Trust (collectively, the "Trusts"), hereby constitute and appoint Rosemary K. Behan, Teresa A. Oxford and Michael D. Jiang, each of them with the power to act without any other and with full power of substitution, my true and lawful attorney with full power to sign for me in my capacity as Trustee for the Trusts any Registration Statement on Form N-1A under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trusts and all instruments necessary or desirable in connection therewith, hereby ratifying and confirming my signature as it may be signed by said attorney to any and all amendments to said Registration Statements.

Pursuant to the requirements of the Securities Act of 1933, as amended, this instrument has been signed below by the following in my capacity and is effective on the 31st day of January, 2023.

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| |
|:---|
| /s/ Douglas A. Lindgren |
| Douglas A. Lindgren, Trustee |

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**POWER OF ATTORNEY**

I, <u>Barbara J. McKenna</u>, Trustee of the American Beacon Funds, the American Beacon Select Funds and the American Beacon Institutional Funds Trust (collectively, the "Trusts"), hereby constitute and appoint Rosemary K. Behan, Teresa A. Oxford and Michael D. Jiang, each of them with the power to act without any other and with full power of substitution, my true and lawful attorney with full power to sign for me in my capacity as Trustee for the Trusts any Registration Statement on Form N-1A under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trusts and all instruments necessary or desirable in connection therewith, hereby ratifying and confirming my signature as it may be signed by said attorney to any and all amendments to said Registration Statements.

Pursuant to the requirements of the Securities Act of 1933, as amended, this instrument has been signed below by the following in my capacity and is effective on the 31st day of January, 2023.

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| |
|:---|
| /s/ Barbara J. McKenna |
| Barbara J. McKenna, Trustee |

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