# EDGAR Filing Document

**Accession Number:** 0000809593
**File Stem:** 0001133228-25-010317
**Filing Date:** 2025-9
**Character Count:** 1821972
**Document Hash:** 22cf090a71e6be532b2de56f57654996
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001133228-25-010317.hdr.sgml**: 20250929

**ACCESSION NUMBER**: 0001133228-25-010317

**CONFORMED SUBMISSION TYPE**: N-14

**PUBLIC DOCUMENT COUNT**: 14

**FILED AS OF DATE**: 20250929

**DATE AS OF CHANGE**: 20250929

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AMERICAN BEACON FUNDS
- **CENTRAL INDEX KEY:** 0000809593

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** N-14
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-290593
- **FILM NUMBER:** 251357465

**BUSINESS ADDRESS:**
- **STREET 1:** 220 EAST LAS COLINAS BOULEVARD
- **STREET 2:** SUITE 1200
- **CITY:** IRVING
- **STATE:** TX
- **ZIP:** 75039
- **BUSINESS PHONE:** 8173916100

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

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AMERICAN AADVANTAGE FUNDS
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AMERICAN EAGLE FUNDS
- **DATE OF NAME CHANGE:** 19890813
**CENTRAL INDEX KEY**: 0000809593

**CENTRAL INDEX KEY**: 0001480207

**CENTRAL INDEX KEY**: 0000809593

**CENTRAL INDEX KEY**: 0001480207

**CENTRAL INDEX KEY**: 0000809593

**CENTRAL INDEX KEY**: 0001480207

**CENTRAL INDEX KEY**: 0000809593

**CENTRAL INDEX KEY**: 0001480207

## Series and Classes Contracts Data

### American Beacon DoubleLine Floating Rate Income Fund (Series ID: S000052009)

| Class ID   | Class Name     | Ticker Symbol   |
|:---|:---|:---|
| C000163587 | Investor Class | SPFPX           |

### DoubleLine Floating Rate Fund (Series ID: S000039682)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000122990 | Class N      | DLFRX           |

### American Beacon DoubleLine Floating Rate Income Fund (Series ID: S000052009)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000163588 | Y Class      | SPFYX           |

### DoubleLine Floating Rate Fund (Series ID: S000039682)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000122989 | Class I      | DBFRX           |

### American Beacon DoubleLine Select Income Fund (Series ID: S000097955)

| Class ID   | Class Name     | Ticker Symbol   |
|:---|:---|:---|
| C000267489 | Investor Class |  |

### DoubleLine Infrastructure Income Fund (Series ID: S000053014)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000166677 | Class N      | BILTX           |

### American Beacon DoubleLine Select Income Fund (Series ID: S000097955)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000267490 | Y Class      |  |

### DoubleLine Infrastructure Income Fund (Series ID: S000053014)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000166676 | Class I      | BILDX           |

As filed with the Securities and Exchange Commission on September 29, 2025

1933 Act Registration File No. 333-

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM N-14**

**REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933**

☐ Pre-Effective Amendment No. ___

☐ Post-Effective Amendment No. ___

(Check appropriate box or boxes.)

**<u>AMERICAN BEACON FUNDS</u>**

(Exact Name of Registrant as Specified in Charter)

220 East Las Colinas Boulevard, Suite 1200

Irving, Texas 75039<br> (Address of Principal Executive Offices) (Number, Street, City, State, Zip Code)

Registrant's Area Code and Telephone Number: (817) 391-6100

Gregory J. Stumm, President

220 East Las Colinas Boulevard

Suite 1200

Irving, Texas 75039

(Name and Address of Agent for Service) (Number and Street, City, State, Zip Code)

Copy to:

Kathy K. Ingber, Esq.

K&L Gates LLP

1601 K Street, NW

Washington, D.C. 20006-1600

Approximate Date of Proposed Public Offering: As soon as practicable after this Registration Statement becomes effective under the Securities Act of 1933, as amended.

It is proposed that this Registration Statement will become effective on the 30th day after filing pursuant to Rule 488 under the Securities Act of 1933, as amended.

Title of Securities Being Registered: Y Class and Investor Class shares of beneficial interest in the American Beacon DoubleLine Floating Rate Income Fund and the American Beacon DoubleLine Select Income Fund, each a series of the Registrant.

No filing fee is required because the Registrant is relying on Section 24(f) of the Investment Company Act of 1940, as amended, pursuant to which it has previously registered an indefinite number of shares (File Nos. 033-11387 and 811-04984).

CONTENTS OF REGISTRATION STATEMENT

This Registration Statement contains the following papers and documents:

Cover Sheet

Contents of Registration Statement

Letter to Shareholders

Notice of Special Meeting

Questions and Answers

Part A - Combined Proxy Statement and Prospectus

Part B - Statement of Additional Information

Part C - Other Information

Signature Page

Exhibit Index

**2**

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**DoubleLine Funds Trust**

**DoubleLine Floating Rate Fund, and**<br>**DoubleLine Select Income Fund (formerly known as the DoubleLine Infrastructure Income Fund)**

**2002 North Tampa Street, Suite 200, Tampa, Florida 33602**

[XX XX, 2025]

**Your action is required. Please vote today.**

Dear Valued Shareholder:

Enclosed is a notice and combined Proxy Statement and Prospectus (the "**Proxy Statement**") relating to a Special Joint Meeting of Shareholders of each of the following Funds:

DoubleLine Floating Rate Fund<br>DoubleLine Select Income Fund

(each, a "Target Fund" and collectively, the "**Target Funds**").

A Special Meeting of Shareholders (the "**Special Meeting**") of the Target Funds, each a series of DoubleLine Funds Trust (the "**Trust**"), will be held as a virtual meeting at https://www.viewproxy.com/DoubleLine/broadridgevsm/, on January 14, 2026 at 11:00 am, Eastern time. At the Special Meeting, shareholders of each Target Fund will be asked to approve a proposed Agreement and Plan of Reorganization and Termination (each, a "**Reorganization Plan**"), which provides for the reorganization (each, a "**Reorganization**") of such Target Fund into a corresponding series of American Beacon Funds ("**Acquiring Trust,**" and such series, an "**Acquiring Fund**" and collectively, the "**Acquiring Funds**"), as further described below. The Target Funds and Acquiring Funds are each referred to herein as a "Fund" and together as the "**Funds**."

If each Reorganization Plan is approved by the applicable Target Fund's shareholders, and certain other conditions are fulfilled, the Reorganizations of the DoubleLine Floating Rate Fund and DoubleLine Select Income Fund are expected to take effect on or about February 6, 2026. Each Target Fund shareholder would receive the class of shares of the Acquiring Fund as set forth below:

---

| | | |
|:---|:---|:---|
|  **Target Fund** |  | **Acquiring Fund** |
| DoubleLine Floating Rate Fund | → | American Beacon DoubleLine Floating Rate Income Fund |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I Shares | → | Y Class Shares |
| &nbsp;&nbsp;&nbsp;&nbsp; Class N Shares | → | Investor Class Shares |
| DoubleLine Select Income Fund | → | American Beacon DoubleLine Select Income Fund |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I Shares | → | Y Class Shares |
| &nbsp;&nbsp;&nbsp;&nbsp; Class N Shares | → | Investor Class Shares |

---

Shares of each Acquiring Fund would be distributed pro rata on a class-by-class basis, as applicable, by each Target Funds' to shareholders in complete liquidation of the Target Funds. Shareholders will not pay any sales loads, commissions or other transactional fees in connection with the exchange of their Target Fund shares for shares of the corresponding Acquiring Fund.

You are being asked to review the enclosed Proxy Statement and to cast your vote on the proposal to reorganize each Target Fund with and into the corresponding Acquiring Fund. If each Reorganization Plan is approved, the existing investment advisor of each Target Fund, DoubleLine Capital LP ("**DoubleLine Capital**" or the "**Advisor**"), will be replaced by American Beacon Advisors, Inc. ("**American Beacon**" or the "**Manager**"), which will serve as manager to each Acquiring Fund. DoubleLine Capital will serve as the sub-advisor to each Acquiring Fund.

The Reorganization Plans are not expected to change in any material respect the manner in which the Target Fund's investment portfolios are managed, and it is anticipated that the portfolio managers responsible for each Target Fund will be the portfolio managers for the corresponding Acquiring Fund. The American Beacon DoubleLine Floating Rate Income Fund ("**Acquiring Floating Rate Income** **Fund**"), which is an existing series of the Acquiring Trust for which American Beacon is the manager and DoubleLine Capital is the sub-advisor will acquire the assets and assume the liabilities of the DoubleLine Floating Rate Fund and continue its business operations. The American Beacon DoubleLine Select Income Fund ("**Acquiring Select Income Fund**") is newly organized and was initially created for the purposes of acquiring the assets and assuming the liabilities of the DoubleLine Select Income Fund and continuing its business operations. The Acquiring Floating Rate Income Fund has an essentially identical investment objective as the

------

corresponding Target Fund, and the Acquiring Select Income Fund has an identical investment objective to the corresponding Target Fund. In addition, both Acquiring Funds have substantially similar principal investment strategies and principal risks as the corresponding Target Fund, although the Funds describe and organize them differently. In addition, the total annual operating expenses of each Acquiring Fund following the applicable Reorganization and after the implementation of a fee waiver/expense reimbursement arrangement are expected to be the same as the corresponding Target Fund's current total annual operating expenses after the implementation of a fee waiver/expense reimbursement arrangement at the same asset levels. Each Acquiring Fund will cap expenses at the same rate and with the same or more favorable terms as those that are currently in place for the Target Fund for a period of at least two years from the date of the closing of the applicable Reorganization. For more information about changes in fees, please see the attached Proxy Statement. The enclosed proxy is being solicited on behalf of the Board of Trustees (the "**Board**") of the Trust.

American Beacon will pay the direct fees and expenses associated with the Reorganizations, except that each Target Fund will bear, as applicable, the costs of (i) buying and selling portfolio securities necessary to effect the applicable Reorganization in instances where the securities may not be transferred in-kind; and (ii) transfer or stamp duties, such as those typically imposed in certain non-U.S. markets in connection with the transfer of portfolio securities to the Acquiring Fund. For the other direct costs of the Reorganizations, each of American Beacon and DoubleLine Capital will each bear their own costs (e.g., legal fees for their own business interests). While no indirect costs (e.g., additional auditor's fee resulting from testing of and review of disclosures in the annual report pertaining to a Reorganization) are associated with the Reorganizations, it is anticipated that such indirect costs, if any, would be borne by the Acquiring Funds. Such costs, if any, are not expected to be material for the Acquiring Funds and would be subject to the fee waiver agreement. Therefore, it is likely that such costs ultimately would be borne by American Beacon.

The Board of the Trust has approved these proposals and recommends that you vote for the proposals. Your vote is important no matter how many shares you own. Voting your shares early will avoid repetitive follow-up mail and telephone solicitation. After reviewing the attached materials, please complete, sign and date your proxy card and mail it promptly in the enclosed postage paid envelope, or help us save time and postage costs by voting on the Internet or by telephone – instructions can be found on your proxy card. Any proposal submitted to a vote at the Special Meeting by anyone other than the officers or trustees of the Trust may be voted virtually or by written proxy.

If you have any questions, please call our proxy agent Broadridge Financial Solutions, Inc. ("**Broadridge**"), at 1-855-206-1250, who will be glad to assist you. You have multiple options available for how to cast your proxy vote:

**By Telephone.** Submit a proxy by calling the toll-free telephone number printed on the proxy card. The proxy card should be in hand when making the call. Easy-to-follow voice prompts allow the shareholder of record to authenticate his or her identity by entering the validation numbers printed on the enclosed proxy card, provide voting instructions for the shares, and confirm that the instructions have been properly recorded.

Please see the instructions on the enclosed proxy card for telephone touch-tone proxy submission. Shareholders will have an opportunity to review their voting instructions and to make any necessary changes before submitting their voting instructions and terminating their telephone call.

**By Internet.** Submit a proxy via the Internet by accessing the web address printed on the proxy card. The proxy card should be in hand when accessing the web page. Easy-to-follow on screen instructions allow the shareholder of record to authenticate his or her identity by entering validation numbers printed on the enclosed proxy card, provide voting instructions for the shares, and confirm that the instructions have been properly recorded.

Please see the instructions on the enclosed proxy card for Internet proxy submission. Shareholders will have an opportunity to review their voting instructions and to make any necessary changes before submitting their voting instructions.

**By Mail.** Shareholders of record may complete, sign, and date the proxy card and return it in the prepaid envelope provided.

While you may attend the Special Meeting virtually, voting today will avoid potential future mailings and phone calls required to obtain shareholder votes.

The attached Combined Proxy Statement and Prospectus contains further information regarding the Reorganizations and the Acquiring Funds. Please read it carefully. If you have any questions regarding the Reorganizations, please call Broadridge at 1-855-206-1250.

Sincerely,

Ronald R. Redell

President <br>DoubleLine Funds Trust

------

**DoubleLine Funds Trust**

**DoubleLine Floating Rate Fund, and**<br>**DoubleLine Select Income Fund (formerly, DoubleLine Infrastructure Income Fund)**

**2002 North Tampa Street, Suite 200, Tampa, Florida 33602**

NOTICE OF JOINT SPECIAL MEETING OF SHAREHOLDERS TO BE HELD January 14, 2026

To the Shareholders of the DoubleLine Floating Rate Fund and DoubleLine Select Income Fund (formerly, DoubleLine Infrastructure Income Fund): NOTICE IS HEREBY GIVEN that a Special Meeting of Shareholders (the "**Special Meeting**") of the DoubleLine Floating Rate Fund and DoubleLine Select Income Fund (each, a "**Target Fund**"), each a series of DoubleLine Funds Trust (the "**Target Trust**"), is to be held as a virtual meeting at https://www.viewproxy.com/DoubleLine/broadridgevsm/, at 11:00 am Eastern Time on January 14, 2026, to act on the following proposals:<br>

---

| | | |
|:---|:---|:---|
| **Proposal** | **Proposal** | **Shareholders Entitled to Vote on the Proposal** |
| 1. | To approve an Agreement and Plan of Reorganization and Termination (the "Reorganization Plan"), to reorganize the DoubleLine Floating Rate Fund, a series of the Target Trust, with and into the American Beacon DoubleLine Floating Rate Income Fund, a series of American Beacon Funds ("Acquiring Trust"). | Shareholders of the DoubleLine Floating Rate Fund |
| 2. | To approve an Agreement and Plan of Reorganization and Termination (the "Reorganization Plan"), to reorganize the DoubleLine Select Income Fund, a series of the Target Trust, with and into the American Beacon DoubleLine Select Income Fund, a newly created series of Acquiring Trust. | Shareholders of the DoubleLine Select Income Fund |

---

Those present and the appointed proxies also will transact such other business, if any, as may properly come before the Special Meeting or any adjournments or postponements thereof.

Holders of record of the shares of beneficial interest in the Target Funds as of the close of business on October 17, 2025, ("**Record** **Date**"), are entitled to vote at the Special Meeting or any adjournments or postponements thereof.

If the necessary quorum to transact business or the vote required to approve any proposal is not obtained at the Special Meeting, if a quorum is present at the Special Meeting but sufficient votes required to approve one or more Reorganization Plans are not received, or if other matters arise requiring shareholder attention, the persons named as proxies on the enclosed proxy card may, but are not required to, propose one or more adjournments of the Special Meeting to permit, in accordance with applicable law, further solicitation of proxies with respect to the proposals. The persons designated as proxies may use their discretionary authority to vote on questions of adjournment and on any other proposals raised at the Special Meeting to the extent permitted by the proxy rules of the Securities and Exchange Commission (the "**SEC**"), including proposals for which timely notice was not received, as set forth in the SEC's proxy rules.

**Important Notice Regarding the Availability of Proxy Materials for the Special Meeting of Shareholders to be Held on** **January 14, 2026, or any adjournment or postponement thereof.** This Notice and the attached Combined Proxy Statement and Prospectus (the "**Proxy Statement**") are available on the internet at www.proxyvote.com. On this webpage, you will be able to access the Notice, the Proxy Statement, any accompanying materials, and any amendments or supplements to the foregoing material that are required to be furnished to shareholders. We encourage you to access and review all of the important information contained in the proxy materials before voting.

By order of the Board of Trustees of the Target Trust,

Sincerely,

Ronald R. Redell

President <br>DoubleLine Funds Trust

------

**YOUR VOTE IS IMPORTANT**<br>**NO MATTER HOW MANY SHARES YOU OWN**

We urge you to vote your shares. Your prompt vote may save the fund the necessity of further solicitations to ensure a quorum at the Special Meeting. **Shareholders may cast their vote by mail, via the internet, and by telephone as set forth below:**

**The Proxy Statement and related materials are available at** www.proxyvote.com

Shareholders of record may submit a proxy in respect of their shares by using any of the following methods:

<u>By Telephone.</u> Submit a proxy by calling the toll-free telephone number printed on the proxy card. The proxy card should be in hand when making the call. Easy-to-follow voice prompts allow the shareholder of record to authenticate his or her identity by entering the validation numbers printed on the enclosed proxy card, provide voting instructions for the shares, and confirm that the instructions have been properly recorded.

Please see the instructions on the enclosed proxy card for telephone touch-tone proxy submission. Shareholders will have an opportunity to review their voting instructions and to make any necessary changes before submitting their voting instructions and terminating their telephone call.

<u>By Internet.</u> Submit a proxy via the Internet by accessing the web address printed on the proxy card. The proxy card should be in hand when accessing the web page. Easy-to-follow on screen instructions allow the shareholder of record to authenticate his or her identity by entering validation numbers printed on the enclosed proxy card, provide voting instructions for the shares, and confirm that the instructions have been properly recorded.

Please see the instructions on the enclosed proxy card for Internet proxy submission. Shareholders will have an opportunity to review their voting instructions and to make any necessary changes before submitting their voting instructions.

<u>By Mail.</u> Shareholders of record may complete, sign, and date the proxy card and return it in the prepaid envelope provided.

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This is a brief overview of the Reorganization proposed for your Fund. We encourage you to read the full text of the enclosed Combined Proxy Statement and Prospectus for more information. Capitalized and abbreviated terms not defined herein have the same definition as in the Proxy Statement.

**QUESTIONS AND ANSWERS**

**Q. What is happening? Why did I receive this document?**

A. Based on the recommendation of DoubleLine Capital LP ("**DoubleLine Capital**" or the "**Advisor**"), and its own due diligence review, the Board of Trustees ("**Board**") of the DoubleLine Funds Trust ("**Target Trust**") has approved two Plans of Reorganization and Termination (each, a "**Reorganization Plan**" and collectively, the "**Reorganization Plans**"), which provide, respectively, for the reorganization (each, a "**Reorganization**" and together, the "**Reorganizations**") of the DoubleLine Floating Rate Fund and DoubleLine Select Income Fund (formerly, DoubleLine Infrastructure Income Fund) (each, a "**Target Fund**" and together, the "**Target Funds**") with and into the American Beacon DoubleLine Floating Rate Income Fund ("**Acquiring Floating Rate Income Fund**") and American Beacon DoubleLine Select Income Fund ("**Acquiring** **Select Income Fund**"), respectively (each, an "**Acquiring Fund**" and together, the "Acquiring Funds"). Each of the Target Funds is a series of the Target Trust, and each of the Acquiring Funds is a series of the American Beacon Funds ("**Acquiring Trust**"). The Acquiring Floating Rate Income Fund is an existing series of the Acquiring Trust, and the Acquiring Select Income Fund is a newly created series of the Acquiring Trust. The Target Funds and Acquiring Funds are each referred to herein as a "Fund" and together as the "Funds." You are receiving this document because, as of October 17, 2025, you were a shareholder of a Target Fund. Pursuant to the applicable Reorganization Plan, upon the closing of the applicable Reorganization, your shares of a Target Fund will automatically be exchanged for shares of the corresponding Acquiring Fund. Each Target Fund shareholder will receive a percentage of the Acquiring Fund shares of the relevant class issued in the Reorganization ("**Acquisition Shares**") based on and equal to the Target Fund shareholder's percentage ownership of the relevant class of shares of the Target Fund immediately before the Reorganization. The Reorganizations are currently scheduled to close on or about February 6, 2026 (the "Closing Date"). Each Reorganization Plan requires approval by shareholders of the applicable Target Fund, and if a Reorganization Plan is approved, the applicable Reorganization is expected to close on or about the applicable Closing Date, or such other date as may be agreed between the Target Trust and the Acquiring Trust in writing. The accompanying document is a Proxy Statement for the Target Funds and Prospectus for the Acquiring Funds (the "Proxy Statement"). The purposes of the Proxy Statement are to: (1) solicit votes from shareholders of the Target Funds to approve the Reorganization Plans, as applicable, forms of which are attached to the Proxy Statement as Appendix A, and (2) provide information to Target Fund shareholders regarding the Acquiring Funds. This Proxy Statement contains information the shareholders of the Target Funds should know prior to the Reorganization. You should retain this document for future reference.

**Q. What is the purpose of each Reorganization?**

A. The Advisor has proposed reorganizing the Target Funds with and into the Acquiring Funds because the Reorganizations may benefit Target Fund shareholders by, among other things, providing them with access to American Beacon Advisors, Inc.'s ("**American Beacon**" or the "**Manager**") significant distribution platform, which could lead to potential asset growth opportunities that, if realized, could result in Target Fund shareholders experiencing economies of scale and greater efficiencies leading to lower overall costs over time. In addition, the proposed Reorganizations would give Target Fund shareholders the opportunity to diversify through exchange privileges with the other mutual funds in the American Beacon funds complex, which span a wide range of investment objectives and management styles. At a meeting held on August 19, 2025 after careful consideration of a number of factors, the Board of the Target Trust, including all the Trustees who are not "interested persons," as that term is defined in the 1940 Act, of the Target Trust, voted to approve the Reorganizations as being in the best interests of the Target Funds and their shareholders. See the "Board Considerations" section of the Proxy Statement for further information

**Q. How will a Reorganization work?**

A. If the Reorganization Plans are approved by the Target Funds' shareholders, and certain other conditions are fulfilled, the Reorganization of the DoubleLine Floating Rate Fund with and into the Acquiring Floating Rate Income Fund and the DoubleLine Select Income Fund with and into the Acquiring Select Income Fund are currently scheduled to take place on or about the Closing Date. At the designated time, each applicable Target Fund will transfer all of its assets to the corresponding Acquiring Fund in exchange solely for shares of the Acquiring Fund. Each class of shares of the Acquiring Fund received by the Target Fund will be distributed pro rata to the relevant class of the Target Fund's shareholders in exchange for their shares therein and in complete liquidation thereof, and the Target Fund will be terminated. The Board of the Target Trust has approved the use of each Acquiring Fund's valuation policies for purposes of calculating each Target Fund's portfolio valuation on the Closing Date and to effect each Target Fund's Reorganization on the Closing Date. Accordingly, for these purposes, including determining the total net asset value of the Acquisition Shares to be issued in the Reorganization, the assets of the Target Fund will be valued using the Acquiring Fund's valuation policies, which are similar to, although different from, those of the Target Fund. Each Target Fund shareholder will receive the class of shares of the Acquiring Fund as set forth below:

------

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| | | |
|:---|:---|:---|
|  **Target Fund** |  | **Acquiring Fund** |
| DoubleLine Floating Rate Fund | → | American Beacon DoubleLine Floating Rate Income Fund |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I Shares | → | Y Class Shares |
| &nbsp;&nbsp;&nbsp;&nbsp; Class N Shares | → | Investor Class Shares |
| DoubleLine Select Income Fund | → | American Beacon DoubleLine Select Income Fund |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I Shares | → | Y Class Shares |
| &nbsp;&nbsp;&nbsp;&nbsp; Class N Shares | → | Investor Class Shares |

---

The Acquiring Floating Rate Income Fund is an existing series of the Acquiring Trust, and the Acquiring Select Income Fund is a newly created series of the Acquiring Trust. Please refer to the Proxy Statement for a detailed explanation of the Reorganization Plans. No sales loads, commissions or other transactional fees will be imposed on Target Fund shareholders in connection with the Reorganization. The Target Funds' procedures for purchasing, redeeming and exchanging shares, and tax information are similar to those of the Acquiring Funds.

**Q After the Reorganization, will I own the same number of shares?**

A. At the time of the Reorganizations, shareholders of each Target Fund automatically will become shareholders of the corresponding Acquiring Fund, by receiving shares of the applicable class of the Acquiring Fund. The net asset values per share of the various classes of each Acquiring Fund may not be the same as those of the corresponding Target Fund class of shares. Accordingly, the number of shares you own after a Reorganization may be different than the number you owned before. However, shareholders of each Target Fund will receive the same percentage of the Acquisition Shares of the relevant class issued in the applicable Reorganization as the percentage of the relevant Target Fund class that each owned immediately before the Reorganization. For more information regarding the application of each Acquiring Fund's valuation policies on the corresponding Target Fund's portfolio on the Closing Date, see "Terms of the Reorganization Plans" below.

**Q Is the management of each Target Fund different from the corresponding Acquiring Fund?**

A. Yes. However, the Reorganizations are not expected to change in any material respect the manner in which the Target Funds' investment portfolios are managed, and it is anticipated that the portfolio managers responsible for each Target Fund will be the portfolio managers for the corresponding Acquiring Fund. DoubleLine Capital currently serves as the investment adviser for the DoubleLine Floating Rate Fund and sub-advisor to the Acquiring Floating Rate Income Fund. After the proposed Reorganization, American Beacon will serve as the manager for the Acquiring Funds and DoubleLine Capital will serve, or continue to serve, as the sub-advisor for the Acquiring Funds. The portfolio managers at DoubleLine Capital who are jointly and primarily responsible for the day-to-day portfolio management of the Target Funds are expected to continue to serve in that capacity for the corresponding Acquiring Funds. The Reorganizations will shift management oversight responsibility for the Target Funds from DoubleLine Capital to American Beacon. DoubleLine Capital will continue to manage the Acquiring Funds on a day-to-day basis, and American Beacon will be responsible for overseeing the management of the Acquiring Funds by DoubleLine Capital.

**Q. Will the service providers to each Target Fund change following the Reorganizations?**

A. The following table outlines the service providers for the Target Funds and the expected service providers for the Acquiring Funds. In addition, the Board of Trustees of the Acquiring Trust is different from the Board of Trustees of the Target Trust.

---

| | | |
|:---|:---|:---|
| **Service Provider** | **Target Funds** | **Acquiring Funds** |
| Investment Advisor | DoubleLine Capital LP | American Beacon Advisors, Inc. |
| Sub-Advisor | None | DoubleLine Capital LP |
| Custodian | U.S. Bank National Association | State Street Bank and Trust Co. |
| Fund Accounting Agent | U.S. Bancorp Fund Services, LLC | State Street Bank and Trust Co. |
| Administrator | U.S. Bancorp Fund Services, LLC | American Beacon Advisors, Inc. |
| Transfer Agent | U.S. Bancorp Fund Services, LLC | SS&C GIDS, Inc. |
| Principal Underwriter | Quasar Distributors, LLC | Resolute Investment Distributors, Inc. |
| Legal Counsel | Ropes & Gray LLP | K&L Gates LLP |
| Auditors | PricewaterhouseCoopers LLP\* | PricewaterhouseCoopers LLP |

---

\* For the fiscal year ended March 31, 2025. The Board of Trustees of the Target Trust has appointed Deloitte & Touche LLP as the Target Funds' independent registered public accounting firm for the fiscal year ending March 31, 2026.

**Q. Do the portfolio managers who manage each Target Fund also manage the corresponding Acquiring Fund?**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

A. Yes. It is anticipated that the portfolio managers for each Target Fund will be the portfolio managers for the corresponding Acquiring Fund. In the case of the Acquiring Floating Rate Income Fund, the portfolio managers for the DoubleLine Floating Rate Fund currently serve as portfolio managers of the Acquiring Floating Rate Income Fund, and are expected to continue to do so after the Reorganization.

**Q. Will there be any changes to my fees and expenses as a result of the Reorganizations?**

A. **<u>DoubleLine Floating Rate Fund Reorganization:</u>** After giving effect to the Reorganization, it is expected that the Total Expense Ratio of each class of the Acquiring Fund will be slightly higher than the corresponding share class of the Target Fund, and the Net Expense Ratio of each class of the Acquiring Fund will be the same as the corresponding share class of the Target Fund. The Target Fund pays DoubleLine Capital an advisory fee at the annual rate of 0.50% on the Fund's average daily net assets. The Acquiring Fund fee schedules are structured so that the Acquiring Fund will pay a combined management fee rate to American Beacon and sub-advisory fee rate to DoubleLine Capital equal to that of the Target Fund at all asset levels. Under a fee waiver and expense reimbursement agreement (a "fee waiver agreement") effective as of the Closing Date of the Reorganization, American Beacon has contractually agreed to waive fees and/or reimburse expenses of the Acquiring Fund's Y Class and Investor Class shares through February 6, 2028, or, if longer, two years following the closing date of the Reorganization, to the extent that Total Annual Fund Operating Expenses exceed 0.75% for the Y Class and 1.00% for the Investor Class (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses). After the expiration of the current fee waiver agreement, if American Beacon does not continue to reduce and/or reimburse expenses of the Acquiring Fund's Y Class and Investor Class shares, the total annual fund operating expenses of the Acquiring Fund's Y Class and Investor Class shares could exceed the limits set forth in the current fee waiver agreement. If this occurs, the expenses borne by shareholders of the Acquiring Fund's Y Class and Investor Class shares would increase. American Beacon currently intends to recommend to the Acquiring Trust Board the continuation of the fee waiver agreement with the same or substantially similar limits for the Acquiring Fund for the foreseeable future.

**<u>DoubleLine Select Income Fund Reorganization:</u>** After giving effect to the Reorganization, it is expected that the Total Expense Ratio of each class of the Acquiring Fund will be slightly higher than the corresponding share class of the Target Fund, and the Net Expense Ratio of each class of the Acquiring Fund will be the same as the corresponding share class of the Target Fund. The Target Fund pays DoubleLine Capital an advisory fee at the annual rate of 0.50% on the Fund's average daily net assets. The Acquiring Fund fee schedules are structured so that the Acquiring Fund will pay a combined management fee rate to American Beacon and sub-advisory fee rate to DoubleLine Capital equal to that of the Target Fund at all asset levels. Under a fee waiver and expense reimbursement agreement (a "fee waiver agreement"), American Beacon has contractually agreed to waive fees and/or reimburse expenses of the Acquiring Fund's Y Class and Investor Class shares through February 6, 2028, or, if longer, two years following the closing date of the Reorganization, to the extent that Total Annual Fund Operating Expenses exceed 0.59% for the Y Class and 0.84% for the Investor Class (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses). After the expiration of the current fee waiver agreement, if American Beacon does not continue to reduce and/or reimburse expenses of the Acquiring Fund's Y Class and Investor Class shares, the total annual fund operating expenses of the Acquiring Fund's Y Class and Investor Class shares could exceed the limits set forth in the current fee waiver agreement. If this occurs, the expenses borne by shareholders of the Acquiring Fund's Y Class and Investor Class shares would increase. American Beacon currently intends to recommend to the Acquiring Trust Board the continuation of the fee waiver agreement with the same or substantially similar limits for the Acquiring Fund for the foreseeable future.

**Q. Will a Reorganization result in any federal income tax liability for each Target Fund or its shareholders?**

A. The Reorganizations are expected to be tax-free transactions for federal income tax purposes. The Acquiring Trust expects that neither a Target Fund nor its shareholders will recognize any gain or loss for federal income tax purposes as a direct result of the Reorganization, and the Acquiring Trust expects to receive a tax opinion from K&L Gates LLP, counsel to the Acquiring Trust, substantially to that effect. Shareholders should consult their own tax advisers about possible state and local tax consequences of the Reorganization, if any, because the information about tax consequences in this document relates only to the federal income tax consequences of the Reorganizations. While the Reorganizations are expected to be tax-free for federal income tax purposes, you may recognize a gain for federal income tax purposes (unless you hold your shares through a tax-advantaged arrangement, such as a 401(k) plan or individual retirement account) as a result of the distribution of net capital gains, if any, realized by a Target Fund in connection with any changes made to align its portfolio with that of an Acquiring Fund prior to a Reorganization. Please see the Proxy Statement for more information.

**Q. Will I need to open an account in an Acquiring Fund prior to the Reorganizations?**

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

A. No. If you own your shares of a Target Fund directly, an account will be set up in your name and your shares of a Target Fund automatically will be exchanged for the corresponding class of shares of the corresponding Acquiring Fund. You will receive confirmation of this transaction following the Reorganization. If you own your shares of a Target Fund through a financial intermediary, you will continue to own shares of the corresponding Acquiring Fund through your financial intermediary.

**Q. Can I still purchase and redeem shares of the Target Funds until the Reorganizations?**

A. Effective on or about February 4, 2026, the Target Funds will no longer accept purchases or exchanges of shares. You may continue to redeem shares of the Target Funds until the day prior to the Closing Date of the Reorganizations. Redemption requests received by the transfer agent on or after the Closing Date will be treated as requests received for the redemption of shares of the Acquiring Funds received by the shareholder in connection with the Reorganizations.

**Q. Who is paying the costs of the Reorganizations?** 

A. American Beacon will pay the direct fees and expenses associated with the Reorganizations, except that each Target Fund will bear, as applicable, the costs of (i) buying and selling portfolio securities necessary to effect the applicable Reorganization in instances where the securities may not be transferred in-kind; and (ii) transfer or stamp duties, such as those typically imposed in certain non-U.S. markets in connection with the transfer of portfolio securities to the Acquiring Fund. These expenses are discussed further in the Proxy Statement. It is not anticipated that portfolio holdings of the Target Fund will be repositioned in connection with the proposed Reorganization. Such costs described above, if any, are not expected to be material for the Acquiring Fund and would be subject to the fee waiver agreement. Therefore, it is likely that such costs ultimately would be borne by American Beacon. For the other direct costs of the Reorganizations, each of American Beacon and DoubleLine Capital will each bear their own costs (e.g., legal fees for their own business interests). While no indirect costs (e.g., additional auditor's fee resulting from testing of and review of disclosures in the annual report pertaining to a Reorganization) are associated with the Reorganization, it is anticipated that such indirect costs, if any, would be borne by the Acquiring Funds. Such costs, if any, are not expected to be material for the Acquiring Funds and would be subject to the fee waiver agreement. Therefore, it is likely that such costs ultimately would be borne by American Beacon.

**Q. Who do I contact if I have questions about the Reorganizations?**

A. If you have any questions about the Reorganizations, please call representatives of Broadridge Financial Solutions, Inc., the Target Funds' proxy solicitor, at 1-855-206-1250.

------

**PROXY STATEMENT**

**for**

**DoubleLine Floating Rate Fund** **and**<br>**DoubleLine Select Income Fund (formerly, DoubleLine Infrastructure Income Fund)**

**each a series of** **DoubleLine Funds Trust**

**2002 North Tampa Street, Suite 200, Tampa, Florida 33602**

**1-855-206-1250**<br>

**PROSPECTUS**

**for**

**American Beacon DoubleLine Floating Rate Income Fund**<br>**and** **American Beacon DoubleLine Select Income Fund, each a series of American Beacon Funds**

**220 East Las Colinas Boulevard**<br>**Suite 1200**<br>**Irving, Texas 75039**<br>**1-817-391-6100** 

**Dated**<br>**[XX XX, 2025]**<br>

_________________________________

This Combined Proxy Statement and Prospectus (the "**Proxy Statement**") is being sent to you in connection with the solicitation of proxies by the Board of Trustees (the "Target Trust Board") of DoubleLine Funds Trust (the "**Target Trust**") for use at a Special Meeting of Shareholders (the "**Special Meeting**") of the DoubleLine Floating Rate Fund ("**Target Floating Rate Fund**") and DoubleLine Select Income Fund ("**Target Select Income Fund**") (each, a "**Target Fund**" and together, the "**Target Funds**"), each a series of the Target Trust, to be held virtually at 11:00 am Eastern Time on January 14, 2026, at https://www.viewproxy.com/DoubleLine/broadridgevsm/. Each Target Fund is managed by DoubleLine Capital LP ("DoubleLine Capital"). At the Special Meeting, shareholders of each Target Fund who are entitled to vote will be asked to approve the following proposals:

---

| | | |
|:---|:---|:---|
| **Proposal** | **Proposal** | **Shareholders Entitled to Vote on the Proposal** |
| 1. | To approve an Agreement and Plan of Reorganization and Termination (the "Reorganization Plan"), to reorganize the DoubleLine Floating Rate Fund, a series of the Target Trust, with and into the American Beacon DoubleLine Floating Rate Income Fund, a series of American Beacon Funds ("Acquiring Trust"). | Shareholders of the DoubleLine Floating Rate Fund |
| 2. | To approve an Agreement and Plan of Reorganization and Termination (the "Reorganization Plan"), to reorganize the DoubleLine Select Income Fund, a series of the Target Trust, with and into the American Beacon DoubleLine Select Income Fund, a newly created series of Acquiring Trust. | Shareholders of the DoubleLine Select Income Fund |

---

Those present and the appointed proxies also will transact any other business as may properly come before the Special Meeting or any adjournments or postponements thereof. Each proposed reorganization referred to in Proposals 1-2 above is referred to herein as a "**Reorganization**" and together as the "**Reorganizations**."

Each of the American Beacon DoubleLine Floating Rate Income Fund (the "**Acquiring Floating Rate Income Fund**"), and American Beacon DoubleLine Select Income Fund ("**Acquiring Select Income Fund**") is referred to herein as an "**Acquiring Fund**" and collectively as the "**Acquiring Funds**," and each of the Acquiring Funds and Target Funds may be referred to herein as a "**Fund**" and together as the "**Funds**." The Acquiring Floating Rate Income Fund is an existing fund, and the Acquiring Select Income Fund is a newly created series. Each Acquiring Fund is a series of the Acquiring Trust. The Acquiring Select Income Fund will commence operations upon consummation of the respective Reorganization. The Target Funds and Acquiring Funds are open-end management investment companies that are registered with the SEC under the Investment Company Act of 1940, as amended ("**1940 Act**" or the

------

"I**nvestment Company Act**"). The Target Floating Rate Fund and the Target Select Income Fund are both "**diversified**" within the meaning of Section 5(b)(1) of the 1940 Act. The Acquiring Floating Rate Fund is, and the Acquiring Select Income Fund will be, "**diversified**" within the meaning of Section 5(b)(1) of the 1940 Act.

This Proxy Statement sets forth concisely the basic information you should know before voting on the proposals. You should read it before voting on the proposals and keep it for future reference. Additional information relating to the Acquiring Funds and this Proxy Statement is set forth in the Statement of Additional Information to this Proxy Statement dated [XX XX, 2025], which is incorporated by reference into this Proxy Statement. Additional information about the Acquiring Funds has been filed with the SEC and is available upon request and without charge by writing to the Acquiring Funds or by calling (817) 391-6100. The Target Funds expect that this Proxy Statement will be mailed to shareholders on or about [XX XX, 2026].

The following documents have been filed with the Securities and Exchange Commission ("**SEC**") and are incorporated by reference into this Proxy Statement, which means they are part of this Proxy Statement for legal purposes:

1. The
 Statement of Additional Information ()"**SAI** ")
 dated [XX XX, 20XX], relating to this Proxy Statement (File No.[ ])

2. [The Prospectus and  SAI for the Target Funds, dated July 31, 2025 (File Nos. 333-164298 and 811-22378), as supplemented.](https://www.sec.gov/ix?doc=/Archives/edgar/data/1480207/000119312525163532/d866184d485bpos.htm) <br> a. [Supplement to the Prospectus and  SAI of the Target Floating Rate Fund, dated August 29, 2025](https://www.sec.gov/Archives/edgar/data/1480207/000119312525192866/d21840d497.htm) <br> b. [Supplement to the Prospectus and  SAI of the Target Select Income Fund, dated August 29, 2025](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001480207/000119312525192865/d937446d497.htm)

3. [The Annual Shareholder Reports, audited financial statements and other information filed on Form  N-CSR for the Target Funds for the fiscal year ended March 31, 2025.](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001480207/000113322825006081/dscn-efp15567_ncsr.htm)

The Annual Shareholder Reports listed above have previously been provided to shareholders as applicable. For a free copy of these reports or any of the documents listed above, you may call 877-354-6311, download them at www.doubleline.com, or write to the Target Funds at: DoubleLine Funds c/o U.S. Bank Global Fund Services, P.O. Box 219252 Kansas City, MO 64121-9252. Each of the Target Trust and the Acquiring Trust is subject to the informational requirements of the Securities Exchange Act of 1934, as amended. Accordingly, the Target Trust and the Acquiring Trust must file certain reports and other information with the SEC. Proxy material, reports, proxy and information statements, and other information about the Target Trust and the Acquiring Trust are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies of this information may be obtained, after paying a duplicating fee, by electronic request at the following email address: publicinfo@sec.gov.

**Please note that the shares offered by this Proxy Statement are not bank deposits, are not federally insured, are not** **guaranteed by any bank or government agency and may lose value. There is no assurance that any Fund will achieve** **its investment objectives.**

**No person has been authorized to give any information or to make any representations other than those contained in** **this Proxy Statement and, if given or made, such other information or representations must not be relied upon as** **having been authorized by the Target Funds or Acquiring Funds.**

**THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR** **PASSED UPON THE ADEQUACY OF THIS PROXY STATEMENT. ANY REPRESENTATION TO THE CONTRARY IS A** **CRIMINAL OFFENSE**.<br>

------

**Table of Contents**

---

| | |
|:---|:---|
| [**SUMMARY OF THE PROPOSED REORGANIZATIONS**.....................................................](#chapter_2_2681) | [**1**](#chapter_2_2681) |
| &nbsp;&nbsp;&nbsp; [Reasons for the Reorganizations.......................................................................](#chapter_2-sect1_1_2681) | [1](#chapter_2-sect1_1_2681) |
| &nbsp;&nbsp;&nbsp; [The Reorganizations.................................................................................](#chapter_2-sect1_2_2681) | [1](#chapter_2-sect1_2_2681) |
| [**PROPOSAL 1: TO APPROVE THE REORGANIZATION PLAN TO REORGANIZE THE DOUBLELINE FLOATING RATE** **FUND, A SERIES OF THE TARGET TRUST, WITH AND INTO THE AMERICAN BEACON DOUBLELINE FLOATING** **RATE INCOME FUND, A SERIES OF THE ACQUIRING TRUST**...............................................](#chapter_3_2681) | [**2**](#chapter_3_2681) |
| &nbsp;&nbsp;&nbsp; [Comparative Fee and Expense Tables...................................................................](#chapter_3-sect1_2_2681) | [5](#chapter_3-sect1_2_2681) |
| &nbsp;&nbsp;&nbsp; [Example of Fund Expenses............................................................................](#chapter_3-sect1_3_2681) | [7](#chapter_3-sect1_3_2681) |
| &nbsp;&nbsp;&nbsp; [Fund Turnover......................................................................................](#chapter_3-sect1_4_2681) | [8](#chapter_3-sect1_4_2681) |
| &nbsp;&nbsp;&nbsp; [Comparison of Investment Objectives, Policies, Strategies, Advisers and Portfolio Managers.....................](#chapter_3-sect1_5_2681) | [8](#chapter_3-sect1_5_2681) |
| &nbsp;&nbsp;&nbsp; [Comparison of Principal Risk Factors....................................................................](#chapter_3-sect1_6_2681) | [11](#chapter_3-sect1_6_2681) |
| &nbsp;&nbsp;&nbsp; [Comparison of Investment Policies/Restrictions...........................................................](#chapter_3-sect1_7_2681) | [29](#chapter_3-sect1_7_2681) |
| &nbsp;&nbsp;&nbsp; [Comparative Performance Information..................................................................](#chapter_3-sect1_8_2681) | [32](#chapter_3-sect1_8_2681) |
| &nbsp;&nbsp;&nbsp; [Capitalization.......................................................................................](#chapter_3-sect1_9_2681) | [35](#chapter_3-sect1_9_2681) |
| [**PROPOSAL 2: TO APPROVE THE REORGANIZATION PLAN, TO REORGANIZE THE DOUBLELINE SELECT** **INCOME FUND, A SERIES OF THE TARGET TRUST, WITH AND INTO THE AMERICAN BEACON DOUBLELINE** **SELECT INCOME FUND, A NEWLY CREATED SERIES OF THE ACQUIRING TRUST**.............................](#chapter_4_2681) | [**36**](#chapter_4_2681) |
| &nbsp;&nbsp;&nbsp; [Comparative Fee and Expense Tables...................................................................](#chapter_4-sect1_2_2681) | [39](#chapter_4-sect1_2_2681) |
| &nbsp;&nbsp;&nbsp; [Example of Fund Expenses............................................................................](#chapter_4-sect1_3_2681) | [41](#chapter_4-sect1_3_2681) |
| &nbsp;&nbsp;&nbsp; [Fund Turnover......................................................................................](#chapter_4-sect1_4_2681) | [41](#chapter_4-sect1_4_2681) |
| &nbsp;&nbsp;&nbsp; [Comparison of Investment Objectives, Policies, Strategies, Advisers and Portfolio Managers.....................](#chapter_4-sect1_5_2681) | [41](#chapter_4-sect1_5_2681) |
| &nbsp;&nbsp;&nbsp; [Comparison of Principal Risk Factors....................................................................](#chapter_4-sect1_6_2681) | [46](#chapter_4-sect1_6_2681) |
| &nbsp;&nbsp;&nbsp; [Comparison of Investment Policies/Restrictions...........................................................](#chapter_4-sect1_7_2681) | [62](#chapter_4-sect1_7_2681) |
| &nbsp;&nbsp;&nbsp; [Comparative Performance Information..................................................................](#chapter_4-sect1_8_2681) | [66](#chapter_4-sect1_8_2681) |
| &nbsp;&nbsp;&nbsp; [Capitalization.......................................................................................](#chapter_4-sect1_9_2681) | [67](#chapter_4-sect1_9_2681) |
| [**ADDITIONAL INFORMATION ABOUT THE REORGANIZATIONS**............................................](#chapter_5_2681) | [**67**](#chapter_5_2681) |
| &nbsp;&nbsp;&nbsp; [Terms of the Reorganization Plans......................................................................](#chapter_5-sect1_1_2681) | [67](#chapter_5-sect1_1_2681) |
| &nbsp;&nbsp;&nbsp; [Description of the Securities to Be Issued................................................................](#chapter_5-sect1_2_2681) | [69](#chapter_5-sect1_2_2681) |
| &nbsp;&nbsp;&nbsp; [Board Considerations................................................................................](#chapter_5-sect1_3_2681) | [69](#chapter_5-sect1_3_2681) |
| &nbsp;&nbsp;&nbsp; [Federal Income Tax Consequences of the Reorganizations..................................................](#chapter_5-sect1_4_2681) | [70](#chapter_5-sect1_4_2681) |
| &nbsp;&nbsp;&nbsp; [Form of Organization and Rights of Shareholders of the Funds..............................................](#chapter_5-sect1_5_2681) | [71](#chapter_5-sect1_5_2681) |
| &nbsp;&nbsp;&nbsp; [Purchase and Sale of Acquiring Fund Shares.............................................................](#chapter_5-sect1_6_2681) | [73](#chapter_5-sect1_6_2681) |
| &nbsp;&nbsp;&nbsp; [Tax Information for Acquiring Funds....................................................................](#chapter_5-sect1_7_2681) | [74](#chapter_5-sect1_7_2681) |
| &nbsp;&nbsp;&nbsp; [Payments to Broker-Dealers and Other Financial Intermediaries for Acquiring Funds............................](#chapter_5-sect1_8_2681) | [74](#chapter_5-sect1_8_2681) |
| &nbsp;&nbsp;&nbsp; [Comparison of Distribution and Purchase, Redemption and Exchange Procedures..............................](#chapter_5-sect1_9_2681) | [74](#chapter_5-sect1_9_2681) |
| &nbsp;&nbsp;&nbsp; [Purchase, Redemption and Exchange Procedures.........................................................](#chapter_5-sect1_10_2681) | [75](#chapter_5-sect1_10_2681) |
| [**Additional Information About the Acquiring Funds**.....................................................](#chapter_6_2681) | [**76**](#chapter_6_2681) |
| &nbsp;&nbsp;&nbsp; [Service Providers.....................................................................................](#chapter_6-sect1_1_2681) | [76](#chapter_6-sect1_1_2681) |
| &nbsp;&nbsp;&nbsp; [Householding.......................................................................................](#chapter_6-sect1_2_2681) | [80](#chapter_6-sect1_2_2681) |
| &nbsp;&nbsp;&nbsp; [Additional Information...............................................................................](#chapter_6-sect1_3_2681) | [80](#chapter_6-sect1_3_2681) |
| [**VOTING INFORMATION**...............................................................................](#chapter_7_2681) | [**80**](#chapter_7_2681) |
| &nbsp;&nbsp;&nbsp; [Record Date, Voting Rights and Vote Required...........................................................](#chapter_7-sect1_1_2681) | [80](#chapter_7-sect1_1_2681) |
| &nbsp;&nbsp;&nbsp; [How to Vote........................................................................................](#chapter_7-sect1_2_2681) | [81](#chapter_7-sect1_2_2681) |
| &nbsp;&nbsp;&nbsp; [Proxies.............................................................................................](#chapter_7-sect1_3_2681) | [81](#chapter_7-sect1_3_2681) |
| &nbsp;&nbsp;&nbsp; [Quorum and Adjournments...........................................................................](#chapter_7-sect1_4_2681) | [81](#chapter_7-sect1_4_2681) |
| &nbsp;&nbsp;&nbsp; [Abstentions and Broker Non-Votes.....................................................................](#chapter_7-sect1_5_2681) | [81](#chapter_7-sect1_5_2681) |
| &nbsp;&nbsp;&nbsp; [Solicitation of Proxies.................................................................................](#chapter_7-sect1_6_2681) | [81](#chapter_7-sect1_6_2681) |
| &nbsp;&nbsp;&nbsp; [Other Business and Next Meeting of Shareholders........................................................](#chapter_7-sect1_7_2681) | [82](#chapter_7-sect1_7_2681) |
| [**FINANCIAL HIGHLIGHTS**..............................................................................](#chapter_8_2681) | [**82**](#chapter_8_2681) |

---

------

---

| | |
|:---|:---|
| [**APPENDIX A: Forms of Agreement and Plan of Reorganization and Termination**...........................](#chapter_9_2681) | [**A-1**](#chapter_9_2681) |
| &nbsp;&nbsp;&nbsp; [APPENDIX A-1: DoubleLine Floating Rate Fund...........................................................](#chapter_9-sect1_1_2681) | [A-1](#chapter_9-sect1_1_2681) |
| &nbsp;&nbsp;&nbsp; [APPENDIX A-2: DoubleLine Select Income Fund (formerly, DoubleLine Infrastructure Income Fund)...............](#chapter_9-sect1_2_2681) | [A-1](#chapter_9-sect1_2_2681) |
| [**APPENDIX B: Ownership of Shares**.....................................................................](#chapter_10_2681) | [**B-1**](#chapter_10_2681) |
| [**APPENDIX C: Additional Information About the Acquiring Fund**............................](#chapter_11_2681) | [**C-1**](#chapter_11_2681) |
| [**APPENDIX D: Financial Highlights**.....................................................................](#chapter_12_2681) | [**D-1**](#chapter_12_2681) |

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[Back to **Table of Contents**](#TOC_2681)

**SUMMARY OF THE PROPOSED REORGANIZATIONS**

You should read this entire Proxy Statement carefully. The following is a summary of certain information relating to the Reorganizations and is qualified in its entirety by reference to the more complete information contained elsewhere in this Proxy Statement and the attached appendices. For additional information about the Reorganizations, you should consult the Reorganization Plans, copies of the forms of which are attached hereto as Appendix A.

**Reasons for the Reorganizations**

DoubleLine Capital LP, (**"** **DoubleLine Capital"** or the "**Advisor**") the Target Funds' investment advisor, has proposed reorganizing the Target Funds with and into the Acquiring Funds because the Reorganization may benefit Target Fund shareholders by, among other things, providing them with access to American Beacon Advisors, Inc.'s ("**American Beacon**" or the "**Manager**") significant distribution platform, which could lead to potential asset growth opportunities that, if realized, could result in Target Fund shareholders experiencing economies of scale and greater efficiencies leading to lower overall costs over time. In addition, the proposed Reorganizations would give Target Fund shareholders the opportunity to diversify through exchange privileges with the other mutual funds in the American Beacon Funds complex, which span a wide range of investment objectives and management styles. At a meeting held on August 19, 2025, after careful consideration of a number of factors, the Target Trust Board, including all the Trustees who are not "**interested persons**," as that term is defined in the 1940 Act, of the Target Trust, voted to approve the Reorganizations as being in the best interests of the Target Funds and their shareholders. See "Board Considerations" below for further information

**The Reorganizations**

If the shareholders of the Target Funds approve the applicable Reorganization Plan, each Reorganization Plan provides for:

• The
 Target Fund's transfer of all assets to the corresponding Acquiring Fund in exchange solely for Acquiring Fund shares
 and the Acquiring Fund's assumption of all the liabilities of the Target Fund;

• The
 distribution of those Acquiring Fund shares pro rata to the Target Fund's shareholders in exchange for their shares therein
 and in complete liquidation thereof; and

• The
 complete termination of the Target Fund.

Approval of the applicable Reorganization Plan by shareholders of a Target Fund will constitute approval of the transfer of the applicable Target Fund's assets, the assumption of all of its liabilities, the distribution of the applicable Acquiring Fund's shares, and liquidation of the Target Fund.

After the close of business on the applicable Closing Date, each Target Fund shareholder will receive shares of the Acquiring Fund in proportion to the shares of the Target Fund that the shareholder held immediately prior to the Reorganization, as set forth below:

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| | | |
|:---|:---|:---|
|  **Target Fund** |  | **Acquiring Fund** |
| DoubleLine Floating Rate Fund | → | American Beacon DoubleLine Floating Rate Income Fund |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I Shares | → | Y Class Shares |
| &nbsp;&nbsp;&nbsp;&nbsp; Class N Shares | → | Investor Class Shares |
| DoubleLine Select Income Fund | → | American Beacon DoubleLine Select Income Fund |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I Shares | → | Y Class Shares |
| &nbsp;&nbsp;&nbsp;&nbsp; Class N Shares | → | Investor Class Shares |

---

The Funds have similar, but not identical, distribution and purchase procedures, exchange rights and redemption procedures. Each Target Fund has a minimum initial investment of $100,000 for Class I Shares for regular accounts or $5,000 for IRA/HSA accounts and $2,000 for Class N Shares for regular accounts or $500 for IRA/HSA accounts with a $100 minimum subsequent investment for both Class I and Class N Shares. For each Acquiring Fund, the Y Class shares have a $100,000 minimum initial investment amount, and the Investor Class shares have a $2,500 minimum initial investment amount. These minimum investment requirements will be waived for all Target Fund shareholders in connection with the Reorganizations, and Target Fund shareholders will be able to continue to purchase Y Class or Investor Class shares of each Acquiring Fund without meeting the respective prior minimum initial investment amounts. Target Fund shareholders will not incur any sales loads or similar transaction charges as a result of the Reorganizations. After giving effect to the Reorganizations, it is expected that the gross total annual operating expenses of each share class of the Acquiring Funds will be slightly higher than that of the respective class of the Target Funds. However, after the applicable fee waivers, it is expected that the net total annual fund operating expense ratio of each class of the Acquiring Fund will be the same as the net total annual fund operating expense ratio of each class of the Target Fund shares. The expense cap for each class of the Acquiring Funds will not be increased for at least two years after the applicable Closing Date.

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[Back to **Table of Contents**](#TOC_2681)

The Reorganizations are expected to be tax-free transactions for federal income tax purposes. The Acquiring Trust expects that neither the Target Funds nor their shareholders will recognize any gain or loss for federal income tax purposes as a direct result of the Reorganizations, and the Acquiring Trust expects to receive a tax opinion from K&L Gates LLP, counsel to the Acquiring Trust, substantially to that effect. See "Federal Income Tax Consequences of the Reorganizations" below for further information. It is expected that the Target Funds may make taxable distributions to their respective shareholders in advance of the Reorganizations. Shareholders should consult their own tax advisers about possible state and local tax consequences of the Reorganizations, if any, because the information about tax consequences in this document relates only to the federal income tax consequences of the Reorganization.

**The proposed Reorganizations are not contingent upon one another. Accordingly, if you approve the Reorganization** **Plan with respect to your Target Fund, the Reorganization for that Target Fund is expected to be completed on the** **applicable Closing Date, irrespective of the determinations of the shareholders of the other Target Fund.**

The Target Trust Board has unanimously approved the Reorganization Plans with respect to the applicable Target Fund. Accordingly, the Target Trust Board is submitting the Reorganization Plans for approval by the shareholders of each Target Fund. In considering whether to approve a proposal (a "**Proposal**"), you should review the Proposal for the Target Fund(s) in which you were a shareholder on the Record Date (as defined under "Voting Information"). In addition, you should review the information in this Proxy Statement that relates to all of the Proposals and the Reorganization Plans generally. **The Target Trust Board recommends** **that you vote "FOR" the Proposal applicable to your Target Fund(s) to approve the Reorganization Plans.**

**PROPOSAL 1: TO APPROVE THE REORGANIZATION PLAN TO REORGANIZE THE DOUBLELINE FLOATING RATE FUND, A** **SERIES OF THE TARGET TRUST, WITH AND INTO THE AMERICAN BEACON DOUBLELINE FLOATING RATE INCOME FUND,** **A SERIES OF THE ACQUIRING TRUST**

This Proposal 1 requests your approval of the applicable Reorganization Plan, pursuant to which the DoubleLine Floating Rate Fund (the **"Target Fund"**) will be reorganized with and into the American Beacon DoubleLine Floating Rate Income Fund (the **"Acquiring** **Fund"**), which is an existing series of the Acquiring Trust.

In considering whether you should approve this Proposal, you should note the following:

**<u>Investment Objectives, Policies, Strategies and Risks of the Funds</u>**

• The
 Target Fund and Acquiring Fund pursue essentially identical investment objectives. The Target Fund's investment objective
 is to seek a high level of current income, whereas the Acquiring Fund's investment objective is to seek to provide
 a high level of current income consistent with strong risk-adjusted returns.. Each Fund's investment objective is "non-fundamental,"
 which means that it may be changed by the applicable Fund's Board of Trustees without the approval
 of Fund shareholders.

• The
 Target Fund and the Acquiring Fund have substantially similar principal investment strategies and policies/restrictions,
 although each Fund describes them differently. Under normal circumstances, the Target Fund invests
 at least 80% of its net assets (plus the amount of borrowings for investment purposes) in floating rate loans and other
 floating rate investments. Under normal circumstances, the Acquiring Fund invests at least 80% of its net assets, plus
 the amount of any borrowings for investment purposes, in income-producing floating-rate loans, other income-producing
 floating rate debt securities and exchange-traded funds that invest in such instruments. The Funds generally
 may invest in the same types of floating-rate investments, although the Acquiring Fund also clarifies that such investments
 may include real estate mortgage investment conduits backed by floating-rate
 instruments, whereas the Target Fund does not. The Target Fund discloses that it may invest in preferred securities,
 whereas the Acquiring Fund does not. The Acquiring Fund further discloses that it may invest in floating-rate obligations
 considered "covenant-lite" based on the types of lender protections and borrower obligations in the loan agreements,
 and that a significant portion of its investment may be unregistered, restricted as to resale or trade in decentralized
 markets, whereas the Target Fund does not. However, the Target Fund does refer to covenant-lite loans in its
 principal risks. Both the Target Fund and the Acquiring Fund may invest in other investment companies sponsored or managed by
 the respective adviser, although the Acquiring Fund discloses that it may invest in a government money market fund advised
 by the Manager, whereas the Target Fund discloses that it may invest in other investment companies, and domestic
 or foreign private investment vehicles. The Target Fund and Acquiring Fund include slightly different descriptions
 of the process followed by the portfolio managers when determining whether and when to sell a portfolio security,
 although in practice, these policies do not differ.

• Although the Funds describe and organize them differently, the principal risks associated with investments in the Target Fund and the Acquiring Fund are substantially similar because the Funds have essentially identical investment objectives and substantially similar principal investment strategies. In addition, as the Acquiring Fund and Target Fund have made different determinations regarding the principal risks, the Acquiring Fund and Target Fund each disclose certain risks that the other does not.

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**<u>Manager, Sub-Advisor and Other Service Providers</u>**

• DoubleLine
 Capital currently serves as the investment adviser for the Target Fund. American Beacon currently serves as the
 Manager for the Acquiring Fund and DoubleLine Capital serves as the sub-advisor for the Acquiring Fund, and both entities
 will continue to do so after the Reorganization. In particular, the portfolio managers at DoubleLine Capital who are
 jointly and primarily responsible for the day to day portfolio management of the Target Fund and the Acquiring Fund
 will continue to serve in that capacity for the Acquiring Fund. The Reorganization will shift management oversight responsibility
 for the Target Fund from DoubleLine Capital to American Beacon. DoubleLine Capital will continue to manage
 the Acquiring Fund on a day-to-day basis, and American Beacon will be responsible for overseeing the management
 of the Acquiring Fund by DoubleLine Capital. For a detailed description of DoubleLine Capital and American
 Beacon, please see "Additional Information about the Funds – Service Providers" below.

• The
 principal underwriter, administrator, custodian and fund accounting agent and transfer agent for the Target Fund and
 the Acquiring Fund are different. The Target Fund and the Acquiring Fund both currently have the same auditor, although
 the Target Trust Board has appointed Deloitte & Touche  LLP as the Target Fund's independent registered public accounting
 firm for the fiscal year ending March 31, 2026. See "Additional Information About the Funds – Service Providers"
 below for further information.

• Resolute
 Investment Distributors, Inc. ("RID") is the principal underwriter for the shares of the Acquiring Fund and acts as
 the Acquiring Fund's agent in connection with the continuous offering of shares of the Acquiring Fund, and will continue
 to do so after the Reorganization. The Acquiring Fund's distributor has no obligation to sell any specific quantity
 of the Acquiring Fund's shares. RID is affiliated with American Beacon through common ownership.

**<u>Fees and Expenses of the Fund</u>**

• As
 reflected in the tables setting forth information regarding comparative expense ratios under "Comparative Fee and Expense
 Tables" below, the current gross total annual operating expense ratio ("Total Expense Ratio"), and the total annual
 fund operating expense ratio after fee waivers and/or expense reimbursements ("Net Expense Ratio") of each share
 class of the Acquiring Fund is higher than Total Expense Ratio of the corresponding share class of the Target Fund.

• However,
 as reflected in the tables below, effective as of the Closing Date, the Manager will implement a reduction in the contractual Management Fee Rate and a lower fee waiver and/or expense reimbursement arrangement for the Acquiring Fund. Accordingly, it is expected that, following the Reorganization, the Total Expense Ratio of each
 class of the Acquiring Fund will be slightly higher than for the corresponding share class of the Target Fund, and the
 Net Expense Ratio of each class of the Acquiring Fund will be the same as the corresponding share class of the Target
 Fund.

• The
 Target Fund pays DoubleLine Capital an advisory fee at the annual rate of 0.50% on the Fund's average daily net assets.
 The Acquiring Fund fee schedules are structured so that the Acquiring Fund will pay a combined management fee
 rate to American Beacon and sub-advisory fee rate to DoubleLine Capital equal to that of the Target Fund's current advisory
 fee at all asset levels. Effective as of the Closing Date of the Reorganization, the Acquiring Fund will pay American Beacon a management fee at the annual rate of 0.10%
 on the first $170 million in assets, and 0.15% on assets over $170 million, for such time as DoubleLine Capital serves
 as the sub-advisor to the Acquiring Fund. The Acquiring Fund will pay DoubleLine Capital a sub-advisory fee rate of
 0.40% on the first $170 million in assets, and 0.35% on assets over $170 million.

• If,
 at any future date,  DoubleLine Capital were no longer to serve as sub-advisor to the Acquiring Fund, American Beacon's
 standard fee schedule would be implemented, pursuant to which the Acquiring Fund would pay American Beacon
 a management fee rate at the annual rate of 0.35% on the first $5 billion of the Acquiring Fund's average daily net
 assets, 0.325% on the next $5 billion, 0.30% on the next $10 billion, and 0.275% on assets exceeding $20 billion. However,
 if another sub-advisor were hired for the Acquiring Fund and that change would result in an increase in the total
 management and advisory fees payable by the Acquiring Fund, pursuant to the Acquiring Trust's multi-manager order
 that change would require shareholder approval.

• The
 Target Fund's  N Class and I Class shares do not, and the Acquiring Fund's Y Class and Investor Class shares will not, assess a sales charge.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• A
 fee waiver and expense reimbursement agreement (a "fee waiver agreement") is in effect for the Acquiring Fund through December 31,
 2025. Under the fee waiver agreement, American Beacon has contractually agreed to waive fees and/or reimburse expenses of the
 Acquiring Fund's Y Class and Investor Class shares through the date set forth above to the extent that Total Annual Fund Operating
 Expenses exceed 0.88% for the Y Class and 1.16% for the Investor Class (excluding taxes, interest, brokerage commissions, acquired
 fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary
 expenses). American Beacon will continue that fee waiver through December 31, 2026. However, if the Reorganization is approved,
 effective as of the Closing Date, the Manager has contractually agreed to waive fees and/or reimburse expenses of the Acquiring
 Fund's Y Class and Investor Class shares through February 6, 2028, or, if longer, two years following the Closing Date, to the
 extent that Total Annual Fund Operating Expenses exceed 0.75% for the Y Class and 1.00% for the Investor Class (excluding the same
 items set forth in the preceding sentence). The Manager will itself waive fees and/or reimburse expenses of the Acquiring Fund to
 maintain the contractual expense ratio caps for each applicable class of shares or make arrangements with other service providers to
 do so. The Manager can be reimbursed by the Acquiring Fund for any contractual 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 Total Annual Fund Operating Expenses of a class to exceed the lesser of the contractual percentage limit in effect at the
 time of the waiver/reimbursement or the time of the recoupment.

• After
 the expiration of the current and future fee waiver agreements, if American Beacon does not continue to reduce and/or reimburse
 expenses of the Acquiring Fund's  Y Class and Investor Class shares, the Total Expense Ratio of the Acquiring Fund's
 Y Class and Investor Class shares could exceed the limits set forth in the current fee waiver agreement. If this occurs,
 the expenses borne by shareholders of the Acquiring Fund's Y Class and Investor Class shares would increase. American
 Beacon currently intends to recommend to the Acquiring Trust Board the continuation of the fee waiver agreement
 with the same or substantially similar limits for the Acquiring Fund for the foreseeable future

**<u>Shares of the Acquiring Fund</u>**

• Shareholders
 of Class I shares of the Target Fund will receive  Y Class shares of the Acquiring Fund, and shareholders of Class
 N shares of the Target Fund will receive Investor Class shares in connection with the proposed Reorganization. At the
 time of the Reorganization, shareholders of the Target Fund automatically will become shareholders of the Acquiring
 Fund, by receiving shares of the class of the Acquiring Fund in proportion to the shares of the Target Fund that
 the shareholder held immediately prior to the Reorganization. Shareholders will not pay any sales charge in connection
 with the proposed Reorganization. Please see "Comparative Fee and Expense Tables," "Additional Information
 about the Reorganizations" and "Additional Information about the Funds" below for more information.

• If
 shareholders of the Target Fund approve the Reorganization, the Target Fund will be the accounting and performance survivor,
 and the Acquiring Fund will assume and publish the operating history and performance record of the Target Fund.

• The
 Funds have similar, but not identical, distribution and purchase procedures, exchange rights and redemption procedures.
 For the Target Fund, Class I shares have a minimum initial investment amount of $100,000 for regular accounts
 or $5,000 for IRA/HSA accounts and the Class N shares have a $2,000 minimum initial investment for regular accounts
 or $500 for IRA/HSA accounts with a $100 minimum subsequent investment for both Class I and Class N shares.
 For the Acquiring Fund, the Y Class shares have a minimum initial investment amount of $100,000 and the Investor
 Class shares have a minimum initial investment amount of $2,500. These minimum investment requirements will
 be waived for all Target Fund shareholders in connection with the Reorganization, and Target Fund shareholders will
 be able to continue to purchase Y Class or Investor Class shares of the Acquiring Fund without meeting the Acquiring Fund's
 minimum initial investment amounts. The Funds' distribution and purchase procedures, exchange rights and redemption
 procedures are discussed further in "Additional Information About the Reorganizations—Comparison of Distribution
 and Purchase, Redemption and Exchange Procedures" and in Appendix C below.

**<u>Costs and Tax Consequences of the Reorganization</u>**

• The
 Reorganization is expected to be a tax-free reorganization under section 368(a) of the Internal Revenue Code of 1986,
 as amended (the "Code"). American Beacon expects that neither the Target Fund nor its shareholders will recognize
 any gain or loss for federal income tax purposes as a direct result of the Reorganization.

• American
 Beacon will bear the direct costs and expenses related to the proposed Reorganization, including the following:
 (1) costs, including legal and accounting fees, associated with preparing, reviewing, and filing the Agreement
 and Plan of Reorganization and Termination and Target Fund's proxy materials, (2) expenses incurred in connection
 with printing and mailing Target Fund's proxy materials and the solicitation of proxies for the special meeting
 of Target Fund Shareholders, (3) transfer agent and custodian conversion costs, (4) costs of preparing and filing
 the Target Fund's prospectus supplement, (5) costs of preparing and filing the Acquiring Fund's registration statement,
 and (6) costs associated with any meeting of the Target Trust Board or Acquiring Trust Board. For the other direct
 costs of the Reorganization,  DoubleLine Capital and American Beacon will each bear their own costs (e.g., legal fees
 for their own business interests).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• It
 is not anticipated that portfolio holdings of the Target Fund will be  repositioned in connection with the proposed Reorganization.
 However, the Target Fund and the Acquiring Fund will bear, as applicable, the costs of (i) buying and selling
 portfolio securities necessary to effect the Reorganization in instances where the securities may not be transferred
 in-kind; and (ii) transfer or stamp duties, such as those typically imposed in certain non-U.S. markets in
 connection with the transfer of portfolio securities to the Acquiring Fund. Such costs, if any, are not expected to be material
 for the Acquiring Fund and would be subject to the fee waiver agreement. Therefore, it is likely that such costs ultimately
 would be borne by American Beacon. · The Target Fund and the Acquiring Fund will not bear any of the direct
 costs and expenses of the proposed Reorganization unless the payment of such expenses by another party would result
 in the Fund's disqualification as a "regulated investment company" under the Code or would prevent the proposed
 Reorganization from qualifying as a tax-free reorganization.

• While
 no indirect costs (e.g., additional auditor's fee resulting from testing of and review of disclosures in the annual report
 pertaining to a Reorganization) are associated with the Reorganization are anticipated, it is anticipated that any such
 indirect costs, would be borne by the Acquiring Fund. Such costs, if any, are not expected to be material for the Acquiring
 Fund and would be subject to the fee waiver agreement. Therefore, it is likely that such costs ultimately would
 be borne by American Beacon. Notwithstanding the foregoing, indirect costs shall be paid by the Fund directly incurring them if and to the extent that the payment thereof by another person would result in that Fund's disqualification as a "regulated investment company" under the Code or would prevent the proposed Reorganization from qualifying as a tax-free reorganization.

• While
 the Reorganization is expected to be tax-free for federal income tax purposes, you may recognize a gain for federal
 income tax purposes (unless you hold your shares through a tax-advantaged arrangement, such as a 401(k) plan or
 individual retirement account) as a result of the distribution of net capital gains, if any, realized by the Target Fund in connection
 with the sale of securities described above.

**<u>Alternatives to the Reorganization</u>**

• If
 the Target Fund is not reorganized with and into the Acquiring Fund, the Target Trust Board may take such further action
 as they may deem to be in the best interests of the Target Fund and its shareholders.

• The
 proposed Reorganizations are not contingent upon one another. Accordingly, if you approve the Reorganization Plan
 with respect to your Target Fund, the Reorganization for that Target Fund is expected to be completed on the applicable
 Closing Date, irrespective of the determinations of the shareholders of the other Target Fund.

**Comparative Fee and Expense Tables**

The following tables show the fees and expenses of each class of shares of the Target Fund and the Acquiring Fund, and the estimated pro forma fees and expenses of each class of shares of the Acquiring Fund after giving effect to the proposed Reorganization. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries,** **which are not reflected in the tables and examples below.**

Expenses for each share class of the Target Fund are based on the operating expenses incurred by Class I Shares or Class N Shares for the fiscal year ended March 31, 2025. Expenses for each share class of the Acquiring Fund are based on the operating expenses incurred by each such class of shares for the six-month period ended February 28, 2025 and are annualized. The pro forma fees and expenses of the Acquiring Fund assume that the Reorganization had been in effect for the year ended March 31, 2025.

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| | | | |
|:---|:---|:---|:---|
|  | **DoubleLine** **Floating** **Rate Fund** **Class I** | **American** **Beacon** **DoubleLine** **Floating** **Rate** **Income** **Fund Y** **Class** | **American** **Beacon** **DoubleLine** **Floating** **Rate Income** **Fund Y Class** *(pro forma)* |
| **Shareholder Fees (fees paid directly from your investment)** | **Shareholder Fees (fees paid directly from your investment)** | **Shareholder Fees (fees paid directly from your investment)** | **Shareholder Fees (fees paid directly from your investment)** |
| Maximum sales charge (load) imposed on purchases (as a % of offering price) |  |  |  |
| Maximum deferred sales charge (load) (as a % of original purchase price) |  |  |  |
| Maximum sales charge (load) imposed on reinvested dividends |  |  |  |
| Redemption Fee (as a percentage of amount redeemed on shares held for 90 days or less) | 1.00% |  |  |
| Fee for Redemption by Wire | $15 |  |  |
| Exchange Fee |  |  |  |
| Account Fee |  | $15<sup>1</sup> | $15<sup>1</sup> |
| **Annual Fund Operating Expenses (Expenses that you pay each year as a percentage of the value of your investment)** | **Annual Fund Operating Expenses (Expenses that you pay each year as a percentage of the value of your investment)** | **Annual Fund Operating Expenses (Expenses that you pay each year as a percentage of the value of your investment)** | **Annual Fund Operating Expenses (Expenses that you pay each year as a percentage of the value of your investment)** |
| Management Fees | 0.50% | 0.65% | 0.50%<sup>2</sup> |
| Distribution and/or Service (12b-1) Fees |  |  |  |
| Other Expenses | 0.29%<sup>3</sup> | 0.55%<sup>4</sup> | 0.30%<sup>5</sup> |
| Acquired Fund Fees and Expenses | 0.01%<sup>6</sup> | 0.03%<sup>7</sup> | 0.01%<sup>7</sup> |
| **Total Annual Fund Operating Expenses** | **0.80%** | **1.23%** | **0.81%** |
| Fee Waiver and/or expense reimbursement | 0.00% | (0.28)%<sup>8</sup> | (0.01)%<sup>8</sup> |
| **Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement** | **0.80%** | **0.95%** | **0.80%** |

---

1 Fee charged by the Custodian for a traditional IRA or Roth IRA invested directly.

2 Management Fees have been restated to reflect a reduction in the contractual Management Fee rate that that will become effective on the Closing Date.

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| | |
|:---|:---|
| 3 | Other Expenses include sub-transfer agent accounting or administrative services expenses. Other Expenses include less than 0.01% of loan interest expenses. |

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| | |
|:---|:---|
| 4 | Other Expenses include 0.04% of loan interest expenses. |

---

---

| | |
|:---|:---|
| 5 | Other Expenses include 0.04% of loan interest expenses. |

---

---

| | |
|:---|:---|
| 6 | "Acquired Fund Fees and Expenses" are expenses indirectly incurred by the Target Fund as a result of its investments in one or more underlying funds, including exchange-traded funds ("ETFs") and money market funds. Because these costs are indirect, the Total Annual Fund Operating Expenses in this fee table will not correlate to the expense ratio in the Target Fund's financial statements, since financial statements only include direct costs of the Target Fund and not the indirect costs of investing in the underlying funds. |

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| | |
|:---|:---|
| 7 | The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses to average net assets provided in the Acquiring Fund's Financial Highlights table, which reflects the operating expenses of the Acquiring Fund and does not include Acquired Fund Fees and Expenses. |

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| | |
|:---|:---|
| 8 | American Beacon Advisors, Inc. (the "Manager") has contractually agreed to waive fees and/or reimburse expenses of the Acquiring Fund's Y Class shares through December 31, 2025, to the extent that Total Annual Fund Operating Expenses exceed 0.88% for the Y Class (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses). American Beacon will continue that fee waiver through December 31, 2026. However, if the Reorganization is approved, effective as of the Closing Date, the Manager has contractually agreed to waive fees and/or reimburse expenses of the Acquiring Fund's Y Class shares through February 6, 2028, or, if longer, two years following the Closing Date, to the extent that Total Annual Fund Operating Expenses exceed 0.75% for the Y Class (excluding the same items set forth in the preceding sentence). Each contractual expense reimbursement can be changed or terminated only in the discretion and with the approval of a majority of the Acquiring Fund's Board of Trustees ("Board"). The Manager will itself waive fees and/or reimburse expenses of the Acquiring Fund to maintain the contractual expense ratio caps for each applicable class of shares or make arrangements with other service providers to do so. The Manager can be reimbursed by the Acquiring Fund for any contractual 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 Total Annual Fund Operating Expenses of a class to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or the time of the recoupment. |

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| | | | |
|:---|:---|:---|:---|
|  | **DoubleLine** **Floating** **Rate Fund** **Class N** | **American** **Beacon** **DoubleLine** **Floating** **Rate** **Income** **Fund** **Investor** **Class** | **American** **Beacon** **DoubleLine** **Floating** **Rate Income** **Fund** **Investor** **Class** *(pro forma)* |
| **Shareholder Fees (fees paid directly from your investment)** | **Shareholder Fees (fees paid directly from your investment)** | **Shareholder Fees (fees paid directly from your investment)** | **Shareholder Fees (fees paid directly from your investment)** |
| Maximum sales charge (load) imposed on purchases (as a % of offering price) |  |  |  |
| Maximum deferred sales charge (load) (as a % of original purchase price) |  |  |  |
| Maximum sales charge (load) imposed on reinvested dividends |  |  |  |
| Redemption Fee (as a percentage of amount redeemed on shares held for 90 days or less) | 1.00% |  |  |
| Fee for Redemption by Wire | $15 |  |  |
| Exchange Fee |  |  |  |
| Account Fee |  | $15<sup>1</sup> | $15<sup>1</sup> |
| **Annual Fund Operating Expenses (Expenses that you pay each year as a percentage of the value of your investment)** | **Annual Fund Operating Expenses (Expenses that you pay each year as a percentage of the value of your investment)** | **Annual Fund Operating Expenses (Expenses that you pay each year as a percentage of the value of your investment)** | **Annual Fund Operating Expenses (Expenses that you pay each year as a percentage of the value of your investment)** |
| Management Fees | 0.50% | 0.65% | 0.50%<sup>2</sup> |
| Distribution and/or Service (12b-1) Fees | 0.25% |  |  |
| Other Expenses | 0.29%<sup>3</sup> | 0.84%<sup>5</sup> | 0.55%<sup>4</sup> |
| Acquired Fund Fees and Expenses | 0.01%<sup>6</sup> | 0.03%<sup>7</sup> | 0.01%<sup>7</sup> |
| **Total Annual Fund Operating Expenses** | **1.05%** | **1.52%** | **1.06%** |
| Fee Waiver and/or expense reimbursement | 0.00% | (0.28)%<sup>8</sup> | (0.01)%<sup>8</sup> |
| **Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement** | **1.05%** | **1.24%** | **1.05%** |

---

1 Fee charged by the Custodian for a traditional IRA or Roth IRA invested directly.

2 Management Fees have been restated to reflect a reduction in the contractual Management Fee rate that that will become effective on the Closing Date.

---

| | |
|:---|:---|
| 3 | Other Expenses include sub-transfer agent accounting or administrative services expenses. Other Expenses include less than 0.01% of loan interest expenses. |

---

---

| | |
|:---|:---|
| 4 | Other Expenses include 0.04% of loan interest expenses. |

---

---

| | |
|:---|:---|
| 5 | Other Expenses include 0.05% of loan interest expenses. |

---

---

| | |
|:---|:---|
| 6 | "Acquired Fund Fees and Expenses" are expenses indirectly incurred by the Target Fund as a result of its investments in one or more underlying funds, including exchange-traded funds ("ETFs") and money market funds. Because these costs are indirect, the Total Annual Fund Operating Expenses in this fee table will not correlate to the expense ratio in the Target Fund's financial statements, since financial statements only include direct costs of the Target Fund and not the indirect costs of investing in the underlying funds. |

---

---

| | |
|:---|:---|
| 7 | The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses to average net assets provided in the Acquiring Fund's Financial Highlights table, which reflects the operating expenses of the Acquiring Fund and does not include Acquired Fund Fees and Expenses. |

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| | |
|:---|:---|
| 8 | American Beacon Advisors, Inc. (the "Manager") has contractually agreed to waive fees and/or reimburse expenses of the Acquiring Fund's Investor Class shares through December 31, 2025, to the extent that Total Annual Fund Operating Expenses exceed 1.16% for the Investor Class (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses). American Beacon will continue that fee waiver through December 31, 2026. However, if the Reorganization is approved, effective as of the Closing Date, the Manager has contractually agreed to waive fees and/or reimburse expenses of the Acquiring Fund's Investor Class shares through February 6, 2028, or, if longer, two years following the Closing Date, to the extent that Total Annual Fund Operating Expenses exceed 1.00% for the Investor Class (excluding the same items set forth in the preceding sentence). Each contractual expense reimbursement can be changed or terminated only in the discretion and with the approval of a majority of the Acquiring Fund's Board of Trustees ("Board"). The Manager will itself waive fees and/or reimburse expenses of the Acquiring Fund to maintain the contractual expense ratio caps for each applicable class of shares or make arrangements with other service providers to do so. The Manager can be reimbursed by the Acquiring Fund for any contractual 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 Total Annual Fund Operating Expenses of a class to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or the time of the recoupment. |

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**Example of Fund Expenses**

This example is intended to help you compare the costs of investing in the Funds with the cost of investing in other mutual funds. The example assumes that:

• You
 invest $10,000 in a Fund for the time periods indicated and then redeem all of your shares at the end of those periods;

• Your
 investment has a 5% return each year;

• Each
 Fund's operating expenses remain the same; and

• The
 applicable contractual fee waiver/expense reimbursement agreement remains in place for the term of the agreement.

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Although your actual costs may be higher or lower, based on these assumptions, whether you redeem or hold your shares, your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
|  **Share Class** | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** |
| Class I Shares | $82 | $255 | $444 | $990 |
| Class N Shares | $107 | $334 | $579 | $1283 |
| **American Beacon DoubleLine Floating Rate Income Fund** | **American Beacon DoubleLine Floating Rate Income Fund** | **American Beacon DoubleLine Floating Rate Income Fund** | **American Beacon DoubleLine Floating Rate Income Fund** | **American Beacon DoubleLine Floating Rate Income Fund** |
| Y Class | $97 | $363 | $649 | $1464 |
| Investor Class | $126 | $453  | $802 | $1789 |
| ***Pro forma*** **American Beacon DoubleLine Floating Rate Income Fund** **(assuming the proposed Reorganization is approved)** | ***Pro forma*** **American Beacon DoubleLine Floating Rate Income Fund** **(assuming the proposed Reorganization is approved)** | ***Pro forma*** **American Beacon DoubleLine Floating Rate Income Fund** **(assuming the proposed Reorganization is approved)** | ***Pro forma*** **American Beacon DoubleLine Floating Rate Income Fund** **(assuming the proposed Reorganization is approved)** | ***Pro forma*** **American Beacon DoubleLine Floating Rate Income Fund** **(assuming the proposed Reorganization is approved)** |
| Y Class | $82 | $258 | $449 | $1002 |
| Investor Class | $107 | $336 | $584 | $1293 |

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**Fund Turnover**

Each Fund pays transaction costs, such as commissions, when it buys and sells securities (or "**turns over**" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the fiscal year ended March 31, 2025, the portfolio turnover rate for the Target Fund was 65% of the average value of its portfolio. During the fiscal year ended August 31, 2024, the Acquiring Fund's portfolio turnover rate was 128% of the average value of its portfolio, and for the six-month period ended February 28, 2025, the portfolio turnover rate for the Acquiring Fund was 119%.

**Comparison of Investment Objectives, Policies, Strategies, Advisers and Portfolio Managers**

The Target Fund and the Acquiring Fund have essentially identical investment objectives and substantially similar principal investment strategies and policies/restrictions, although each Fund describes them differently. The Target Fund's investment objective is to seek a high level of current income, whereas the Acquiring Fund's investment objective is to seek to provide a high level of current income consistent with strong risk-adjusted returns. Because any investment involves risk, there can be no assurance that either Fund's investment objective will be achieved. The Funds' investment objectives are "non-fundamental," which means that they can be changed by a Fund's Board of Trustees without the approval of Fund shareholders.

Under normal circumstances, the Target Fund invests at least 80% of its net assets (plus the amount of borrowings for investment purposes) in floating rate loans and other floating rate investments. Under normal circumstances, the Acquiring Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in income-producing floating-rate loans, other income-producing floating rate debt securities and exchange-traded funds that invest in such instruments. If either Fund changes this investment policy, it will notify shareholders at least 60 days in advance of the change. The Acquiring Fund does not disclose that it may invest in derivatives as a Principal Investment Strategy, while the Target Fund discloses that its investments in derivatives and other synthetic instruments that provide exposure comparable, in the judgment of DoubleLine Capital, to floating rate investments will be counted toward satisfaction of the 80% policy as well. The Target Fund also discloses that, for purposes of the policy to provide notice, clarifications or revisions to the Target Fund's 80% policy that are not expected to alter how the Target Fund is managed are not considered changes that require notice.

The Funds generally may invest in the same types of floating-rate investments, although the Acquiring Fund also clarifies that such investments may include real estate mortgage investment conduits backed by floating-rate instruments, whereas the Target Fund does not. The Target Fund discloses that it may invest in preferred securities, whereas the Acquiring Fund does not. The Acquiring Fund further discloses that it may invest in floating-rate obligations considered "covenant-lite" based on the types of lender protections and borrower obligations in the loan agreements, and that a significant portion of its investment may be unregistered, restricted as to resale or trade in decentralized markets, whereas the Target Fund does not. However, the Target Fund does refer to covenant-lite loans in its principal risks. Both the Target Fund and the Acquiring Fund may invest in other investment companies sponsored or managed by the respective adviser, although the Acquiring Fund discloses that it may invest in a government money market fund advised by the Manager, whereas the Target Fund discloses that it may invest in other investment companies, and domestic or foreign private investment vehicles. The Target Fund and Acquiring Fund include slightly different descriptions of the process followed by the portfolio managers when determining whether and when to sell a portfolio security, although in practice, these policies do not differ.

The Principal Investment Strategies of the Acquiring Fund will not change in connection with the Reorganization.

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Additional information regarding the investment objective and principal investment strategies of each Fund is set forth below. In addition, additional information regarding the investments in which the Acquiring Funds invests is included in Appendix C under the heading "Additional Information About the Acquiring Fund."

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| | |
|:---|:---|
| **Target Fund** | **Acquiring Fund** |
|  DoubleLine Floating Rate Fund | &nbsp;&nbsp; American Beacon DoubleLine Floating Rate Income Fund |
|  **Investment Objective** |  |
| The Fund's investment objective is to seek a high level of current income.<br> The Fund's investment objective is non-fundamental, which means the Fund may change its investment objective without shareholder approval or prior notice. | &nbsp;&nbsp; The Fund's investment objective is to seek to provide a high level of current income consistent with strong risk-adjusted returns.<br> The Fund's investment objective is "non-fundamental," which means that it may be changed by the Fund's Board without the approval of Fund shareholders. |
|  **Principal Investment Strategies** |  |
| The Fund invests primarily in floating rate loans and other floating rate investments.<br> Floating rate loans are typically debt obligations with interest rates that adjust or "float" periodically, often on a daily, monthly, quarterly, or semiannual basis by reference to a base lending rate plus a premium. Certain floating rate loans are secured by specific collateral of the borrower and are senior to most other securities of the borrower (e.g., common stock and other debt instruments) in the event of bankruptcy. Other floating rate loans may be unsecured obligations of the borrower. A floating rate loan may be structured and administered by a financial institution that acts as the agent of the lenders participating in the floating rate loan. Such floating rate loans may be acquired through the agent or from the borrower, as an assignment from another lender who holds a direct interest in the floating rate loan, or as a participation interest in another lender's portion of the floating rate loan.<br> Floating rate investments include, without limitation, bank loans, including assignments and participations; floating rate debt securities; inflation-indexed securities; certain mortgage- and asset-backed securities, and collateralized debt obligations ("CDOs"), including collateralized loan obligations ("CLOs") and collateralized mortgage obligations, backed by floating rate instruments or structured as floating rate investments and having, in the judgment of DoubleLine Capital LP (the "Adviser" or "DoubleLine Capital"), characteristics similar to those of other floating rate investments; adjustable rate mortgages; floaters; inverse floaters; money market securities of all types; repurchase agreements; shares of money market and short-term bond funds; and floating rate loans of any kind (including, among others, subordinated loans, debtor-in-possession loans, exit facilities, delayed funding loans and revolving credit facilities).<br> The Fund normally will invest at least 80% of its net assets (plus the amount of borrowings for investment purposes) in floating rate loans and other floating rate investments. For purposes of this policy, any security or instrument will be considered a floating rate investment if it has a maturity of six months or less even if it pays a rate of interest rate that does not reset or adjust prior to maturity. The Fund's investments in derivatives and other synthetic instruments that provide exposure comparable, in the judgment of the Adviser, to floating rate investments will be counted toward satisfaction of this 80% policy as well.<br> The Fund may invest in securities or instruments of any credit quality. The Fund expects that many or all of the Fund's investments will be rated below investment grade or unrated but of comparable credit quality. Corporate bonds and other fixed income instruments, including certain floating rate investments, rated below investment grade, or such instruments that are unrated and determined by the Adviser to be of comparable quality, are high yield, high risk securities, commonly known as "junk bonds." Such "junk bonds" also may be considered to possess some speculative characteristics. The Fund may invest in securities of stressed, distressed, and defaulted issuers (including issuers involved in bankruptcy proceedings, reorganizations, financial restructurings, or otherwise experiencing financial hardship). Such investments entail high risk and have speculative characteristics.<br> Subject to the Fund's policy to invest at least 80% of its net assets in floating rate loans and other floating rate investments, the Fund may invest any portion of its assets in bonds, debentures, notes and other debt instruments,<br>| &nbsp;&nbsp; Under normal circumstances, the Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in income-producing floating-rate loans, other income-producing floating-rate debt securities and exchange-traded funds ("ETFs") that invest in such instruments.<br> Floating-rate loans and other floating-rate debt securities (collectively, "floating-rate investments") pay income in the form of interest that is payable at variable (i.e., floating) rates, often on a daily, monthly, quarterly, or semiannual basis by reference to a base lending rate, such as the Secured Overnight Financing Rate ("SOFR"), among others, plus a premium. The Fund considers any security or instrument to be a floating-rate investment if it has a maturity of six months or less even if it pays a rate of interest that does not reset or adjust prior to maturity.<br> Floating-rate investments include, without limitation, bank loans, including assignments and participations; floating-rate debt securities; inflation-indexed securities; certain mortgage- and asset-backed securities, and collateralized bond obligations ("CBOs"), collateralized debt obligations ("CDOs"), collateralized loan obligations ("CLOs") and collateralized mortgage obligations ("CMOs"), and real estate mortgage investment conduits ("REMICs"), backed by floating-rate instruments or structured as floating-rate investments and having, in the judgment of DoubleLine Capital LP ("DoubleLine Capital" or the "Sub-Advisor"), characteristics similar to those of other floating-rate investments; adjustable rate mortgages; floaters; inverse floaters; money market securities of all types; repurchase agreements; debentures, shares of money market and short-term bond funds; and other floating-rate loans of any kind (including, among others, subordinated loans, debtor in possession financings, exit financing facilities, delayed funding loans and revolving credit facilities). The Fund may invest in obligations of any maturity, and to a lesser extent, the Fund may invest in fixed-rate instruments as well. The Fund may invest in foreign investments, including obligations of issuers in emerging markets, without limit. The Fund may invest in floating-rate obligations considered "covenant-lite" based on the types of lender protections and borrower obligations in the loan agreements. To obtain exposure to eligible instruments, the Fund may invest in one or more ETFs that invest in such instruments. A significant portion of the Fund's investments may be unregistered, restricted as to their resale, and may trade in decentralized markets. DoubleLine Capital monitors the duration of the Fund's portfolio securities to seek to assess and, in its discretion, adjust the Fund's exposure to interest rate risk.<br> A floating-rate loan may be structured and administered by a financial institution that acts as the agent of the lenders participating in the loan. Such loans may be acquired through the agent or from the borrower, as an assignment from another lender who holds a direct interest in the loan, or as a participation interest in another lender's portion of the loan. Floating-rate loans are generally senior in the borrowing companies' capital structures and are typically wholly or partially secured by assets of the borrowing company, although the Fund may also invest in obligations that are unsecured. <br> DoubleLine Capital considers a wide variety of factors in purchasing and selling investments for the Fund, including, without limitation, the liquidity of the investment, fundamental analysis of the issuer, the credit quality of the issuer and any collateral securing the investment, the issuer's management,  |

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| | |
|:---|:---|
| **Target Fund** | **Acquiring Fund** |
|  DoubleLine Floating Rate Fund | &nbsp;&nbsp; American Beacon DoubleLine Floating Rate Income Fund  |
| preferred securities, money market securities, investment-grade debt securities, repurchase agreements, and any security or instrument bearing a fixed, floating or adjustable rate of interest, including by investing in other investment companies, ETFs, and domestic or foreign private investment vehicles, including investment companies sponsored or managed by the Adviser or its related parties. The amount of the Fund's investment in certain investment companies may be limited by law or by tax considerations.<br> The Fund may invest in obligations of corporate and governmental issuers of any maturity. The Fund may invest in foreign investments, including obligations of issuers in emerging markets, without limit.<br> The Fund's investments in loans may include loans issued in an offering that has been oversubscribed. The Fund may be able to sell such investments at a gain shortly after those investments are made. If the Fund seeks to take advantage of such opportunities, it may lead to higher levels of portfolio turnover, increased transaction costs and greater amounts of taxable distributions to shareholders. There can be no assurance that the Adviser will be able to identify such opportunities successfully or sell any investments at a gain. <br> The Adviser monitors the duration of the Fund's portfolio securities to seek to assess and, in its discretion, adjust the Fund's exposure to interest rate risk. The Fund's portfolio managers may consider a wide variety of factors in purchasing and selling investments for the Fund, including, without limitation, liquidity of the investment, fundamental analysis of the issuer, the credit quality of the issuer and any collateral securing the investment, the issuer's management, capital structure, leverage, and operational performance, and the business outlook for the industry of the issuer. The Fund also may consider available credit ratings. Although the Fund's portfolio managers may review credit ratings in making investment decisions, they typically perform their own investment analysis and generally do not rely upon the independent credit rating agencies in making investment decisions.<br> Proceeds from the sale of a loan may not be available to the Fund for a substantial period of time after the sale. As a result, it is possible that, during a period of substantial shareholder redemptions, proceeds from the sales of loans by the Fund will not be available to the Fund on a timely basis for payment to redeeming shareholders. The Fund might as a result incur significant borrowing or other expenses, be forced to sell other securities with shorter settlement periods at unfavorable times or prices, or be forced to delay payment of redemption proceeds beyond the customary period.<br> Portfolio securities may be sold at any time. By way of example, the Fund's portfolio managers may sell a Fund investment in order to take advantage of what the portfolio managers consider to be a better investment opportunity, when the portfolio managers believe the investment no longer represents a relatively attractive investment opportunity, when the portfolio managers perceive deterioration in the credit fundamentals of the issuer, or when the individual investment has reached the portfolio managers' sell target. | &nbsp;&nbsp; capital structure, leverage, and operational performance, and the business outlook for the industry of the issuer. DoubleLine Capital may also consider available credit ratings in making investment decisions, although the portfolio managers typically perform their own investment analysis and generally do not rely upon the independent credit rating agencies in making investment decisions.<br> The Fund may invest in securities or instruments of any credit quality. The Fund expects that many or all of the Fund's investments will have below investment-grade credit ratings (commonly referred to as "high yield" or "junk" quality obligations) or may be unrated but deemed by the Sub-Advisor to be of equivalent quality. Credit investments rated below investment grade are generally regarded as having speculative characteristics and entail high risk with respect to the issuer's capacity to pay interest and repay principal. The Fund may hold instruments issued by stressed, distressed, and defaulted issuers, including issuers involved in bankruptcy proceedings, reorganizations, financial restructurings, rescue financing, or otherwise experiencing financial hardship.<br> The Fund's investments may include loans issued in an offering that has been oversubscribed, and the Fund may be able to sell such investments at a gain shortly after those investments are made. If the Fund seeks to take advantage of such opportunities, it may lead to higher levels of portfolio turnover, increased transaction costs and greater amounts of taxable distributions to shareholders. There can be no assurance that the Sub-Advisor will be able to identify such opportunities successfully or sell any investments at a gain. DoubleLine Capital generally sells an investment when it believes its projected future return becomes unattractive relative to the rest of the portfolio or the investable universe, including when the portfolio managers perceive deterioration in the credit fundamentals of the issuer, or when the individual investment has reached the portfolio managers' sell target. Proceeds from the sale of a loan may not be available to the Fund for a substantial period of time after the sale. As a result, it is possible that, during a period of substantial shareholder redemptions, proceeds from sales of loans by the Fund will not be available to the Fund on a timely basis for payment to redeeming shareholders. The Fund might, as a result, incur significant borrowing or other expenses, be forced to sell other securities with shorter settlement periods at unfavorable times or prices, or be forced to delay payment of redemption proceeds beyond the customary period, to the extent permissible under applicable regulations. <br> The Fund may invest cash balances in a government money market fund advised by the Manager, with respect to which the Manager receives a management fee. Any such instruments held by the Fund for cash management or defensive investing purposes can fluctuate in value. |
|  **Temporary Defensive Policy** |  |
| When attempting to respond to adverse market, economic, political, or other conditions, the Fund may take temporary defensive positions that may be inconsistent (including materially inconsistent) with such Fund's principal investment strategies. The Adviser then may, but is not required to, temporarily use alternative strategies that are mainly designed to limit the Fund's exposure to such adverse conditions under the circumstances. In implementing these strategies, the Fund may invest primarily in, among other things, U.S. Government and agency obligations, fixed or floating rate investments, derivative instruments, cash or money market instruments (including, money market funds), or any other securities or instruments that the portfolio manager(s) considers consistent with such defensive strategies or deemed consistent with the then existing market conditions. By way of example, the Fund may hold a higher than normal proportion of its assets in cash in times of extreme market stress. The Fund may also use derivatives, such as futures contracts, interest rate swaps, and credit default swaps, as an efficient means to adjust the Fund's interest rate, credit, and other exposures in connection with taking such temporary defensive positions. During periods | &nbsp;&nbsp; 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. |

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| | |
|:---|:---|
| **Target Fund** | **Acquiring Fund** |
|  DoubleLine Floating Rate Fund | &nbsp;&nbsp; American Beacon DoubleLine Floating Rate Income Fund  |
| when the Fund has taken temporary defensive positions, the Fund may not achieve its investment objective. |  |
|  **Investment Adviser** |  |
| DoubleLine Capital | &nbsp;&nbsp; American Beacon Advisors, Inc. |
|  **Investment Sub-Advisor** |  |
|  | &nbsp;&nbsp; DoubleLine Capital |
|  **Portfolio Managers** |  |
| Robert Cohen and Philip Kenney are jointly and primarily responsible for the day-to-day management of the Target Fund. Mr. Cohen has served as portfolio manager of the Target Fund since the Fund's inception in 2013. Mr. Kenney has served as the portfolio manager of the Target Fund since July 2018. <br> **Robert Cohen** Mr. Cohen was named as DoubleLine Capital's Director of Global Developed Credit in September 2016. He has been a Portfolio Manager of DoubleLine Capital since July 2012. Prior to DoubleLine Capital, he was a Senior Credit Analyst at West Gate Horizons Advisors (and its predecessor entity, ING Capital Advisors) since 2001.<br> **Philip Kenney** Mr. Kenney joined DoubleLine Capital's Global Developed Credit Group in 2013 and has been a Portfolio Manager since 2018. Prior to joining the firm, he worked at Crescent Capital as an investment analyst with a focus on high yield bonds and leveraged loans. | &nbsp;&nbsp; Same, except that Messrs. Cohen and Kenney have served as portfolio managers of the Acquiring Fund since June 2025. |

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**Comparison of Principal Risk Factors**

There is no assurance that the Funds will achieve their investment objectives, and you could lose part or all of your investment in the Funds. **The Funds are not designed for investors who need an assured level of current income and are intended to be a** **long-term investment. The Funds are 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 Funds.**

Although the Funds describe and organize them differently, the principal risks associated with investments in the Target Fund and the Acquiring Fund are substantially similar because the Funds have essentially identical investment objectives and substantially similar principal investment strategies. In addition, as the Acquiring Fund and Target Fund have made different determinations regarding the principal risks, the Acquiring Fund and Target Fund each disclose certain risks that the other does not. The table below sets forth the principal risks of the Target Fund, along with the corresponding principal risks of the Acquiring Fund, as well as any principal risks applicable to one Fund, but not the other.

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| | |
|:---|:---|
| **Target Fund** | **Acquiring Fund** |
| Active Management Risk | &nbsp;&nbsp; Asset Selection Risk<br> Securities Selection Risk |
| Asset-Backed Securities Investment Risk | &nbsp;&nbsp; Asset-Backed Securities Risk |
| Collateralized Debt Obligations Risk | &nbsp;&nbsp; Collateralized Debt Obligations ("CDOs") Risk<br> Collateralized Loan Obligations ("CLOs") Risk |
| Confidential Information Access Risk | &nbsp;&nbsp; Confidential Information Access Risk |
| Counterparty Risk | &nbsp;&nbsp; Counterparty Risk<br> Repurchase Agreement Risk  |
| Debt Securities Risks: | &nbsp;&nbsp; Variable and Floating Rate Securities Risk |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;•  Credit Risk | &nbsp;&nbsp; Credit Risk |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;•  Extension Risk | &nbsp;&nbsp; Prepayment and Extension Risk |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;•  Interest Rate Risk | &nbsp;&nbsp; Interest Rate Risk |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;•  Prepayment Risk | &nbsp;&nbsp; Prepayment and Extension Risk <br> Callable Securities Risk |
| Defaulted Securities Risk | &nbsp;&nbsp; Defaulted Securities Risk<br> Litigation, Bankruptcy and Other Proceedings Risk |

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| | |
|:---|:---|
| **Target Fund** | **Acquiring Fund**  |
|  | &nbsp;&nbsp; Stressed, Distressed and Defaulted Securities Risk |
| Emerging Market Country Risk | &nbsp;&nbsp; Emerging Markets Risk |
| Financial Services Risk | &nbsp;&nbsp; No corresponding risk. |
| Focused Investment Risk | &nbsp;&nbsp; No corresponding risk. |
| Foreign Currency Risk | &nbsp;&nbsp; Currency Risk |
| Foreign Investing Risk | &nbsp;&nbsp; Foreign Investing Risk |
| High Yield Risk | &nbsp;&nbsp; High-Yield Securities Risk<br> Unrated Securities Risk |
| Inflation-Indexed Bond Risk | &nbsp;&nbsp; Inflation Index-Linked Securities Risk |
| Investment Company and Exchange-Traded Fund Risk | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Investment Companies Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Exchange-Traded Funds ("ETFs") Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Government Money Market Funds Risk |
| Large Transactions Risk | &nbsp;&nbsp; Redemption Risk |
| Leveraging Risk | &nbsp;&nbsp; No corresponding risk. |
| Liquidity Risk | &nbsp;&nbsp; Liquidity Risk |
| Loan Risk | &nbsp;&nbsp; Loan Interests Risk<br> "Covenant-Lite" Obligations Risk<br> Delayed Funding Loans and Revolving Credit Facilities Risk<br> Reliance on Corporate Management and Financial Reporting Risk<br> Secured, Partially Secured and Unsecured Obligation Risk |
| Market Risk | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Recent Market Events Risk |
| Mortgage-Backed Securities Risk | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage-Backed and Mortgage-Related Securities Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Adjustable Rate Mortgages ("ARMs") Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Collateralized Mortgage Obligation ("CMOs") Risk |
| Operational and Information Security Risks | &nbsp;&nbsp; Cybersecurity and Operational Risk |
| Securities or Sector Selection Risk | &nbsp;&nbsp; Asset Selection Risk <br> Securities Selection Risk<br> Investment Risk<br> Issuer Risk |
| Structured Products and Structured Notes Risk | &nbsp;&nbsp; Structured Products and Structured Notes Risk |
| U.S. Government Securities Risk | &nbsp;&nbsp; U.S. Government Securities and Government-Sponsored Enterprises Risk |
| Valuation Risk | &nbsp;&nbsp; Valuation Risk |
| No corresponding risk. | &nbsp;&nbsp; Debentures Risk |
| No corresponding risk. | &nbsp;&nbsp; Debtor-in-Possession ("DIP") Financing, Rescue Financing, and Exit Financing Risk |
| No corresponding risk. | &nbsp;&nbsp; High Portfolio Turnover Risk |
| No corresponding risk. | &nbsp;&nbsp; Market Timing Risk |
| No corresponding risk. | &nbsp;&nbsp; Restricted Securities Risk |

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The Acquiring Fund is subject to the principal risks described below. These risks 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 the Acquiring Fund, regardless of the order in which it appears.

**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. 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. These securities may be more sensitive to changes in interest rates than other types of debt securities. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain asset-backed securities. Asset-backed securities are also subject to the risk of a 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.

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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 may 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 may lengthen the expected maturity and duration of asset-backed securities, which, in turn, can make these securities more sensitive to changes in interest rates. Therefore, the prices of asset-backed securities may decrease more than prices of other fixed-income securities when interest rates rise. Rising interest rates also may increase the risk of default by borrowers. As a result, in a period of rising interest rates, a Fund may experience additional volatility and losses.

A Fund's investments in asset-backed securities are subject to risks associated with the nature of the assets and the servicing of those assets. Certain asset-backed securities may not have the benefit of a security interest in collateral comparable to that of mortgage assets, resulting in additional credit risk. If a securitization issuer defaults on its payment obligations due to losses or shortfalls on the assets held by the issuer, a sale or liquidation of the assets may not be sufficient to support payments on the securities, and a Fund may suffer losses as a result. As such, 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. There may be a limited secondary market for certain asset-backed securities, which may make it difficult for a Fund to sell or realize profits on those securities at favorable times or for favorable prices. In addition, as certain asset-backed 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 pools that include such subprime loans.

**Asset Selection Risk**<br>Assets selected for a Fund may not perform to expectations. Judgments about the attractiveness, value and potential performance of a particular asset class or individual security may be incorrect, and there is no guarantee that individual securities will perform as anticipated. Additionally, asset classes tend to go through cycles of outperformance and underperformance in comparison to each other and to the general securities markets. This could result in a Fund's underperformance compared to other funds with similar investment objectives.

**Callable Securities Risk**<br>A 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, a Fund would lose the income that would have been earned to maturity on that security, the proceeds received by a Fund may be invested in securities paying lower coupon rates or other less favorable characteristics, and a Fund may not benefit from any increase in value that might otherwise result from declining interest rates. Thus, a Fund's income could be reduced as a result of a call and this may reduce the amount of a 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 a Fund's total return.

**Collateralized Debt Obligations ("CDOs") Risk.**<br>CDOs are a type of asset-backed security, and include collateralized bond obligations ("CBOs"), CLOs, and other similarly structured securities. A CBO is a trust which may be backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, second lien loans or other types of subordinate loans, and mezzanine loans, including loans that may be rated below investment grade or equivalent unrated loans and including loans that may be covenant-lite. CDOs may charge management fees and administrative expenses. The cash flows from the CDO trust are generally split into two or more portions, called tranches, varying in risk and yield. Senior tranches are paid from the cash flows from the underlying assets before the junior tranches and equity or "first loss" tranches. Losses are first borne by the equity tranches, next by the junior tranches, and finally by the senior tranches. Holders of interests in the senior tranches are entitled to the lowest interest rate payments but those interests generally involve less credit risk as they are typically paid before junior tranches. The holders of interests in the most junior tranches, such as equity tranches, typically are entitled to be paid the highest interest rate payments but suffer the highest risk of loss should the holder of an underlying debt instrument default. If some debt instruments default and the cash collected by the CDO is insufficient to pay all of its investors, those in the lowest, most junior tranches suffer losses first. Since it is partially protected from defaults, a senior tranche from a CDO trust typically has higher ratings and lower potential yields than the underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, more senior CDO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults and aversion to CDO securities as a class.

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The risks of an investment in a CDO depend largely on the quality and type of the collateral and the tranche of the CDO in which a 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, there may be a limited secondary market for investments in CDOs and such investments may be illiquid. In addition to the risks associated with debt instruments (e.g., interest rate risk and credit risk), CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the possibility that a Fund may invest in CDOs that are subordinate to other classes of the issuer's securities; and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issue of unexpected investment results.

During periods of deteriorating economic conditions, such as recessions or periods of rising unemployment, delinquencies and losses generally increase, sometimes dramatically, with respect to debt obligations.

**Collateralized Loan Obligations** **("CLOs")** **Risk**<br>The risks of an investment in a CLO depend largely on the type of the collateral securities and the class of the instrument in which a Fund invests. A Fund typically will invest in CLOs collateralized by bank loans. Therefore, the CLOs in which a Fund invests will be subject to loan interests risk. A Fund's investments in CLOs and other similarly structured investments may expose a Fund to heightened credit risk, interest rate risk, liquidity risk, market risk and prepayment and extension risk. In addition to these risks, CLOs may carry additional risks including, but are not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the risk that the quality of the collateral may decline in value or default; (iii) the risk that a Fund may invest in CLOs that are subordinate to other classes; (iv) the risk that 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; and (v) the possibility that CLO's manager may perform poorly. CLOs may charge management and other administrative fees, which are in addition to those of a Fund. CLOs can be difficult to value and may be highly leveraged (which could make them highly volatile).

In addition, CLOs normally are privately offered and sold, and thus, are not registered under the securities laws. As a result, investments in CLOs may be characterized as illiquid securities and may have limited independent pricing transparency. A Fund's interest in CLO securities may be less liquid than the loans held by the CLO itself; thus, it may be more difficult for a Fund to dispose of CLO securities than it would be for a Fund to dispose of loans if it held such loans directly. However, an active dealer market may exist for CLOs, allowing them to qualify for the Rule 144A "safe harbor" from the registration requirements of the Securities Act for transactions in such securities with qualified institutional buyers. The cash flows from a CLO are split into two or more portions, called tranches, each with a different yield and risk/return profile. 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 CLO typically have higher ratings and lower yields than their underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CLO securities as a class.

**Confidential Information Access Risk**<br>In managing the Fund or other client assets, the Manager or Sub-Advisor may be in possession of material non-public information about the issuers of certain investments, including, without limit, loans, high-yield bonds and related investments being considered for acquisition by the Fund or held in the Fund's portfolio. For example, an issuer of privately placed loans considered by the Fund may offer to provide the Manager or Sub-Advisor with financial information and related documentation regarding the issuer that is not publicly available. Because of prohibitions on trading in securities of issuers while in possession of such information, the Fund might be unable, potentially for a substantial period of time, to enter into a transaction in a security of that issuer when it would otherwise be advantageous to do so. In such circumstances, the Fund may be disadvantaged in comparison to other investors, including with respect to the price the Fund pays or receives when it buys or sells an investment. Pursuant to applicable policies and procedures, the Manager or Sub-Advisor may, but is not required to, seek to avoid receipt of confidential information from the issuer so as to avoid possible restrictions on its ability to purchase and sell investments on behalf of the Fund. Further, the Manager's or Sub-Advisor's and the Fund's abilities to assess the desirability of proposed consents, waivers or amendments with respect to certain investments may be compromised if they are not privy to available confidential information. The Manager or Sub-Advisor may also determine to receive such confidential information in certain circumstances under its applicable policies and procedures.

**Counterparty Risk**<br>A 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 a Fund. As a result, a Fund may not recover its investment or may only obtain a limited recovery, and any recovery may be delayed. Not all derivative transactions require a counterparty to post collateral, which may expose a Fund to greater losses in the event of a default by a counterparty.

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Some of the markets in which a 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 a 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.

A Fund is also subject to the risk that an FCM would default on an obligation set forth in an agreement between a Fund and the FCM. This risk exists at and from the time that a Fund enters into derivatives transactions that are centrally cleared. In such cases, a clearing organization becomes a 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, a Fund could miss investment opportunities or otherwise hold investments it would prefer to sell, resulting in losses for a Fund.

**"Covenant-Lite" Obligations Risk**<br>Certain investments, such as loans in which a Fund may invest directly or have exposure to through its investments in structured securities, may be "covenant-lite." Covenant-lite obligations contain fewer maintenance covenants than other obligations, or no maintenance covenants at all, and may not include terms which allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached, which would allow the lender to restructure the loan or take other action intended to help mitigate losses. This may expose a Fund to greater credit risk associated with the borrower and reduce a Fund's ability to restructure a problematic loan and mitigate potential loss. As a result, a Fund's exposure to losses on such investments may be increased, especially during a downturn in the credit cycle, and a Fund may experience relatively greater difficulty or delays in enforcing its rights on its holdings of covenant-lite obligations than its holdings of loans or securities with financial maintenance covenants.

**Credit Risk**<br>A 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 the sub-advisor require accurate and detailed credit analysis of issuers and there can be no assurance that its analysis will be accurate or complete. A 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 a Fund may have an adverse impact on its price and may make it difficult for a 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 a Fund's securities, could affect a 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>A Fund may have exposure to foreign currencies. 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, a Fund's exposure to foreign currencies may reduce the returns of a Fund. Foreign currencies may decline in value relative to the U.S. dollar and other currencies and thereby affect a Fund's investments. In addition, changes in currency exchange rates could adversely impact investment gains or add to investment losses.

**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 a Fund, its service providers, and third-party fund distribution platforms, including the ability of shareholders to transact in a Fund's shares, and result in financial losses. Cybersecurity incidents may allow an unauthorized party to

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gain access to Fund assets, shareholder data, or proprietary information, or cause a 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 financial data, the inability to process Fund transactions, interference with a 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 a Fund or its shareholders. Market events also may occur at a pace that overloads current information technology and communication systems and processes of the funds, their service providers or other market participants, such as third-party distribution platforms, which could impact the ability of the funds to conduct operations or of shareholders to transact the Funds' shares.

The Manager, through its monitoring and oversight of Fund service providers, endeavors to determine that service providers take appropriate precautions to avoid or mitigate risks that could lead to problems discussed above. 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 a 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. A Fund cannot control the cybersecurity plans and systems of its service providers, its counterparties, third-party fund distribution platforms, or the issuers of securities in which a Fund invests. The issuers of a Fund's investments are likely to be dependent on computers for their operations and require ready access to their data and the internet to conduct their business. Thus, cybersecurity incidents could also affect issuers of a Fund's investments, 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. A 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.

<br>A Fund may invest in both corporate and government debentures.

**Debtor-in-Possession ("DIP") Financing, Rescue Financing, and Exit Financing Risk**<br>The Fund may invest in obligations of companies that have filed for protection under Chapter 11 of the United States Bankruptcy Code. DIP financings allow the entity to continue its business operations while reorganizing under Chapter 11, and such financings must be approved by the bankruptcy court. These DIP loans are most often working capital facilities put into place at the outset of a Chapter 11 case to provide the debtor with both immediate cash and the ongoing working capital that will be required during the reorganization process. DIP financings are typically fully secured by a lien on the debtor's otherwise unencumbered assets or secured by a junior lien on the debtor 's encumbered assets (so long as the obligation is fully secured based on the most recent current valuation or appraisal report of the debtor). DIP financings are often required to close with certainty and in a rapid manner in order to satisfy existing creditors and to enable the issuer to emerge from bankruptcy or to avoid a bankruptcy proceeding. There is a risk that the borrower will not emerge from Chapter 11 bankruptcy proceedings and be forced to liquidate its assets under Chapter 7 of the U.S. Bankruptcy Code. In the event of liquidation, the Fund's only recourse will be against the property securing the DIP financing.

The Fund may invest in exit financing, also known as an exit facility, which is the financing provided to companies that have filed for protection under Chapter 11 of the United States Bankruptcy Code to allow them to emerge from bankruptcy. The Fund may also invest in obligations of companies receiving rescue financing to address liquidity shortfalls, temporary operational problems, pending debt maturities or over-leveraged balance sheets. These financial difficulties may never be overcome and may lead to uncertain outcomes, including causing such issuer to become subject to bankruptcy proceedings.

**Defaulted Securities Risk**<br>There is a significant risk related to the uncertainty of repayment of defaulted securities (e.g., a security on which a principal or interest payment is not made when due) and obligations of distressed issuers (including insolvent issuers or issuers in payment or covenant default, in workout or restructuring or in bankruptcy or similar proceedings). Such investments entail high risk and have speculative characteristics.

**Delayed Funding Loans and Revolving Credit Facilities Risk**<br>Delayed funding loans and revolving credit facilities are subject to credit risk, interest rate risk, liquidity risk and loan interests risk. There may be circumstances in which the borrower's credit risk may be deteriorating and yet a Fund may be obligated to make loans

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to the borrower as the borrower's credit continues to deteriorate, including at a time when the borrower's financial condition makes it unlikely that such amounts will be repaid. Delayed funding loans and revolving credit facilities may be subject to restrictions on transfer, and only limited opportunities may exist to resell such instruments. As a result, a Fund may be unable to sell such investments at an opportune time or may have to resell them at less than fair market value. These risks could cause a Fund to lose money on its investment, which in turn could affect a Fund's returns.

**Emerging Markets Risk**<br>When investing in emerging markets, the risks of investing in foreign securities are heightened. Emerging markets have unique risks that are greater than, or in addition to, the risks associated with investing in developed markets because emerging markets are generally smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other developed markets. There are also risks of: greater political and economic uncertainties; an economy's dependence on revenues from particular commodities or on international aid or development assistance; currency transfer restrictions; a limited number of potential buyers for such securities, resulting in increased volatility and limited liquidity for emerging market securities; trading suspensions and other restrictions on investment; delays and disruptions in securities clearing and settlement procedures; and significant limitations on investor rights and recourse. The economies and political environments of emerging market countries tend to be more unstable than those of developed countries, resulting in more volatile rates of return than the developed markets and substantially greater risk to investors. The governments of emerging market countries may also be more unstable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, intervene in the financial markets, and/or impose burdensome taxes that could adversely affect security prices. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and less reliable clearance and settlement, registration, and custodial procedures. In addition, there may be less publicly available or less reliable information about issuers in emerging markets than would be available about issuers in more developed capital markets, which can impede the sub-advisor's ability to accurately evaluate foreign securities. Such issuers may not be subject to accounting, auditing and financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain emerging market countries, fraud and corruption may be more prevalent than in developed market countries, and investor protections may be more limited than those in other countries. It may be difficult to obtain or enforce legal judgments against non-U.S. companies and non-U.S. persons in foreign jurisdictions, either through the foreign judicial system or through a private arbitration process. These matters have the potential to impact a Fund's investment objective and performance.

**Foreign Investing Risk**<br>Non-U.S. investments carry potential risks not associated with U.S. investments. Such risks may 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, recordkeeping 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. Additionally, trading in foreign markets generally involves higher transaction costs than trading in U.S. 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. In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the U.S. and investors may encounter difficulties in enforcing contractual obligations. Additionally, in certain markets, a 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 a 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. A Fund's investment in a foreign issuer may subject a Fund to regulatory, political, currency, security, economic and other risks associated with that country, including tariffs, trade disputes or the imposition of economic and other sanctions by the U.S. or another country against a particular country, as well as competition from subsidized foreign competitors with lower production costs.

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 a 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. A 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. In addition, the Holding Foreign Companies Accountable Act (the "HFCAA") could cause securities of a foreign (non-U.S.) company, including ADRs, to be delisted from U.S. stock exchanges if the company does not allow the U.S. government to oversee the auditing of its financial information. Although the requirements of the HFCAA apply to securities of all foreign (non-U.S.) issuers, the SEC has thus far limited its enforcement efforts to securities of Chinese companies.

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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 a Fund holds material positions in such suspended securities, a Fund's ability to liquidate its positions or provide liquidity to investors may be compromised and a Fund could incur significant losses.

**High Portfolio Turnover Risk**<br>Portfolio turnover is a measure of a Fund's trading activity over a one-year period. A portfolio turnover rate of 100% would indicate that a Fund sold and replaced the entire value of its securities holdings during the period. A Fund may engage in active and frequent trading and may have a high portfolio turnover rate, which could increase a Fund's transaction costs because of increased broker commissions resulting from such transactions. These costs are not reflected in a Fund's annual operating expenses or in the expense example, but they can have a negative impact on performance and generate higher capital gain distributions to shareholders than if a Fund had a low portfolio turnover rate. Frequent trading by a Fund could also result in increased realized net capital gains, distributions of which are taxable to a Fund's shareholders when Fund shares are held in a taxable account (including net short-term capital gain distributions, which are taxable to them as ordinary income).

**High-Yield Securities Risk**<br>Exposure to high-yield securities (commonly referred to as ''junk bonds'') generally involves significantly greater risks of loss of your money than an investment in investment-grade securities. Compared with issuers of investment grade securities, issuers of high-yield securities are more likely to encounter financial difficulties and to be materially affected by these difficulties. High-yield debt securities may fluctuate more widely in price and yield and may fall in price when the economy is weak or expected to become weak. These securities also may be difficult to sell at the time and price a Fund desires. High-yield securities are considered to be speculative with respect to an issuer's ability to pay interest and principal and carry a greater risk that issuers of lower-rated securities will default on the timely payment of principal or interest. Rising interest rates may compound these difficulties and reduce an issuer's ability to repay principal and interest obligations. Issuers of lower-rated securities also have a greater risk of default or bankruptcy. Issuers of securities that are in default or have defaulted may fail to resume principal or interest payments, in which case a Fund may lose its entire investment. Below-investment-grade securities may experience greater price volatility and less liquidity than investment-grade securities.

Lower-rated securities are subject to certain risks that may not be present with investments in higher-grade securities. The lower rating of certain high-yielding corporate income securities reflects a greater possibility that the financial condition of the issuer or adverse changes in general economic conditions may impair the ability of the issuer to pay income and principal. Changes by credit rating agencies in their ratings of a fixed-income security also may affect the value of these investments. However, allocating investments among securities of different issuers could reduce the risks of owning any such securities separately. The prices of these high-yield securities tend to be less sensitive to interest rate changes than investment-grade investments, but more sensitive to adverse economic changes or individual corporate developments. During economic downturns or periods of rising interest rates, highly leveraged issuers may experience financial stress that adversely affects their ability to service principal and interest payment obligations, to meet projected business goals or to obtain additional financing, and the markets for their securities may be more volatile. If an issuer defaults, a Fund may incur additional expenses to seek recovery. Additionally, accruals of interest income for a Fund may have to be adjusted in the event of default. In the event of an issuer's default, a Fund may write off prior income accruals for that issuer, resulting in a reduction in a Fund's current dividend payment. Frequently, the higher yields of high-yielding securities may not reflect the value of the income stream that holders of such securities may expect, but rather the risk that such securities may lose a substantial portion of their value as a result of their issuer's financial restructuring or default.

The credit rating of a security may not accurately reflect the actual credit risk associated with such a security. The creditworthiness of issuers of these securities may be more complex to analyze than that of issuers of investment grade debt securities, and the overreliance on credit ratings may present additional risks.

Adverse publicity and investor perceptions, whether or not based on fundamental analysis, may decrease the values and liquidity of such securities, especially in a thinly traded or illiquid market. To the extent a Fund owns or may acquire illiquid or restricted high-yield securities or unrated securities of comparable quality, these securities may involve special registration responsibilities, liabilities, costs, and liquidity and valuation difficulties.

**Inflation Index-Linked Securities Risk**<br>Unlike a conventional bond, whose issuer makes regular fixed interest payments and repays the face value of the bond at maturity, an inflation index-linked security provides principal payments and interest payments that vary as the principal and/or interest are adjusted over time to reflect a rise or a drop in the reference inflation-related index. The value of inflation index-linked securities is expected to change in response to real interest rates, which are in turn tied to the relationship between nominal interest rates and the rate of inflation. There can be no assurance that an inflation index that is used will accurately measure the real rate of inflation. The price of an inflation index-linked security generally falls when real interest rates rise and rises when real interest rates fall. If

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inflation is lower than expected during the period a Fund holds the security, a Fund may earn less on it than on a conventional bond. Deflation risk is the opposite of inflation risk, and is the risk that the prices throughout the economy decline over time. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer defaults more likely, which may result in a decline in the value of the Fund's portfolio. <br> Interest payments on such securities are unpredictable and will fluctuate as the principal and interest are adjusted to reflect movements in the inflation-related index. The principal value of an investment in the Fund is not protected or otherwise guaranteed by the value of the Fund's investments in inflation index-linked securities. Any increase in the principal amount of an inflation index-linked security will be taxable as ordinary income, even though a Fund will not receive the increased principal until maturity.

**Interest Rate Risk**<br>Investments in fixed-income securities 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, will move in the opposite direction as movements in interest rates. For example, the value of a Fund's fixed-income investments 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 a Fund's investments to decline. Interest rate increases, including significant or rapid increases, may result in a decline in the value of bonds held by a Fund, make issuers less willing or able to make principal and interest payments on fixed-income investments when due, lead to heightened volatility in the fixed-income markets and adversely affect the liquidity of certain fixed-income investments, any of which may result in substantial losses to a Fund. When interest rates decline, issuers may prepay higher-yielding securities held by a Fund, resulting in a Fund reinvesting in securities with lower yields, which may cause a decline in its income. Interest rate changes may have a more pronounced effect on the market value of fixed-rate instruments than on floating-rate instruments. The value of floating rate and variable securities may decline if their interest rates do not rise as quickly, or as much, as general interest rates. The prices of fixed-income securities are also affected by their durations. 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 a Fund's investments in investments with longer durations and terms to maturity to decline, which may adversely affect the value of a Fund. For example, if a bond has a duration of two years, a 1% increase in interest rates could be expected to result in 2% decrease in the value of the bond. Yields of fixed-income securities will fluctuate over time. In addition, decreases in fixed-income dealer market-making capacity may lead to lower trading volume, heightened volatility, wider bid-ask spreads, and less transparent pricing in certain fixed-income markets. <br>A Fund may not be able to hedge against changes in interest rates or may choose not to do so for cost or other reasons. In addition, any hedges may not work as intended.

**Investment Risk**<br>An investment in a 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. A Fund should not be relied upon as a complete investment program. The share price of a Fund fluctuates, which means that when you sell your shares of a Fund, they could be worth less than what you paid for them. Therefore, you may lose money by investing in a 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.

**Liquidity Risk**<br>A Fund is susceptible to the risk that certain investments held by a 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 a 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, a Fund may have to lower the price on certain securities that it is trying to sell, sell other securities instead or forgo an investment opportunity, any of which could have a negative effect on Fund management or performance. An inability to sell a portfolio position can adversely affect a Fund's NAV or prevent a Fund from being able to take advantage of other investment opportunities. A Fund could lose money if it is unable to dispose of an investment at a time that is most beneficial to a Fund. Unexpected redemptions or redemptions by a few large investors in a Fund may force a Fund to sell certain investments at unfavorable prices to meet redemption requests or other cash needs and may have a significant adverse effect on a Fund's NAV per share and remaining Fund

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shareholders. This could negatively affect a Fund's ability to buy or sell debt securities and increase the related volatility and trading costs. A Fund may lose money if it is forced to sell certain investments at unfavorable prices to meet redemption requests or other cash needs. Judgment plays a greater role in pricing illiquid investments than in investments with more active markets.

**Litigation, Bankruptcy, and Other Proceedings Risk**<br>Investments in stressed, distressed or bankrupt companies include a material risk of involving the Fund in a related litigation. Such litigation can be time consuming and expensive, and can frequently lead to unpredicted delays or losses. Litigation expenses, including payments pursuant to settlements or judgments, generally will be borne by the Fund.

There are a number of significant risks when investing in companies involved in bankruptcy or other reorganization proceedings, and many events in a bankruptcy are the product of contested matters and adversary proceedings which are beyond the control of the creditors. A bankruptcy filing may have adverse and permanent effects on a company. Further, if the proceeding is converted to a liquidation, the liquidation value of the company may not equal the liquidation value that was believed to exist at the time of the investment. In addition, the duration of a bankruptcy or other reorganization proceeding is difficult to predict. A creditor's return on investment can be impacted adversely by delays while a plan of reorganization is being negotiated, approved by the creditors, confirmed by the bankruptcy court (if applicable), and becomes effective. In bankruptcy, certain claims, such as claims for taxes, wages and certain trade claims, may have priority by law over the claims of certain creditors and administrative costs in connection with a bankruptcy proceeding are frequently high and will be paid out of the debtor's estate prior to any return to creditors.

Certain fixed-income securities invested in by the Fund could be subject to U.S. federal, state or non-U.S. bankruptcy laws or fraudulent transfer or conveyance laws if such securities were issued with the intent of hindering, delaying or defrauding creditors or, in certain circumstances, if the issuer receives less than reasonably equivalent value or fair consideration in return for issuing such securities. If a court were to find that the issuance of the securities was a fraudulent transfer or conveyance, the court could void the payment obligations under the securities, further subordinate the securities to other existing and future indebtedness of the issuer or require the Fund to repay any amounts received by it with respect to the securities. In the event of a finding that a fraudulent transfer or conveyance occurred, the Fund may not receive any payment on the securities. If the Fund, the Manager or the Sub-Advisor is found to have interfered with the affairs of a company in which the Fund holds a debt investment, to the detriment of other creditors or common stockholders of such company, the Fund may be held liable for damages to injured parties or a bankruptcy court. While the Fund will attempt to avoid taking the types of action that would lead to such liability, there can be no assurance that such claims will not be asserted or that the Fund will be able to successfully defend against them. Moreover, such debt may be disallowed or subordinated to the claims of other creditors or treated as equity.

Insofar as the Fund's portfolio includes obligations of non-United States obligors, the laws of certain foreign jurisdictions may provide for avoidance remedies under factual circumstances similar to those described above or under different circumstances, with consequences that may or may not be analogous to those described above under U.S. federal or state laws. Changes in bankruptcy laws (including U.S. federal and state laws and applicable non-United States laws) may adversely impact the Fund's securities.

**Loan Interests Risk**<br>In making investments in loans that are made by banks or other financial intermediaries to borrowers, a Fund will depend primarily on the creditworthiness of the borrower for payment of principal and interest, and will also rely on the financial institution to make principal and interest payments to a Fund once it receives payment on the underlying loan or to pursue appropriate remedies against a borrower in the event that the borrower defaults, which may expose a Fund to the credit risk of both the financial institution that made the loan and the underlying borrower. The market for bank loans may not be highly liquid, and a Fund may have difficulty selling them. Unlike publicly traded common stocks which trade on national exchanges, there is no central place or exchange for loans, including bank loans and senior loans, to trade. Loans trade in an over-the-counter market, and confirmation and settlement, which are effected through standardized procedures and documentation, may take significantly longer than seven days to complete. Extended trade settlement periods may, in unusual market conditions with a high volume of shareholder redemptions, present a risk to shareholders regarding a Fund's ability to pay redemption proceeds within the allowable time periods stated in its prospectus. The secondary market for floating rate loans also may be subject to irregular trading activity and wide bid/ask spreads. The lack of an active trading market for certain loans may impair the ability of a Fund to sell its loan interests at a time when it may otherwise be desirable to do so or may require a Fund to sell them at prices that are less than what a Fund regards as their fair market value, which would cause a material decline in a Fund's NAV and may make it difficult to value such loans. Accordingly, loan interests may at times be illiquid. Restrictions on transfers in loan agreements, a lack of publicly available information and other factors may make bank loans more difficult to sell at an advantageous time or price than other types of securities or instruments. There may be less readily available information about loans. Interests in loans made to finance highly leveraged companies or transactions, such as corporate acquisitions, may be especially vulnerable to adverse changes in economic or market conditions. It may be difficult for a Fund to obtain an accurate picture of a lending bank's financial condition. Loan interests may not be considered "securities," and purchasers, such as a Fund, therefore may not be entitled to rely on the anti-fraud protections of the federal securities laws. A Fund also may be in possession of material non-public information about a borrower as a result of its ownership of a loan instrument of such borrower. Because of prohibitions on trading in securities of issuers while in possession of such information, a Fund might be

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unable to enter into a transaction in a security of that borrower when it would otherwise be advantageous to do so. Any steps taken to ensure that a Fund does not receive material non-public information about a security may have the effect of causing a Fund to have less information than other investors about certain interests in which it seeks to invest. Interests in secured loans have the benefit of collateral and, typically, of restrictive covenants limiting the ability of the borrower to further encumber its assets, although many covenants may be waived or modified with the consent of a certain percentage of the holders of the loans even if a Fund does not consent. There is a risk that the value of any collateral securing a loan in which a Fund has an interest may decline and that the collateral may not be sufficient to cover the amount owed on the loan. In most loan agreements there is no formal requirement to pledge additional collateral. In the event the borrower defaults, a Fund's access to the collateral may be limited or delayed by bankruptcy or other insolvency laws, or may be depleted by the interests of more senior lenders. 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 a Fund has an interest. In addition, if a secured loan is foreclosed, the Fund would likely bear the costs and liabilities associated with owning and disposing of the collateral. A Fund may acquire a loan interest by direct investment as a lender, by obtaining an assignment of all or a portion of the interests in a particular loan that are held by an original lender or a prior assignee or by participation in a loan interest that is held by another party. As an assignee, a Fund normally will succeed to all rights and obligations of its assignor with respect to the portion of the loan that is being assigned. However, the rights and obligations acquired by the purchaser of a loan assignment may differ from, and be more limited than, those held by the original lenders or the assignor. When a Fund's loan interest is a participation, a Fund may have less control over the exercise of remedies than the party selling the participation interest, and it normally would not have any direct rights against the borrower. As a participant, a Fund also would be subject to the risk that the party selling the participation interest would not remit a Fund's pro rata share of loan payments to a Fund.

**Market Risk**<br>A 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 a Fund's performance. Equity securities generally have greater price volatility than fixed-income securities, although under certain market conditions fixed-income securities may have comparable or greater price volatility. During a general downturn in the securities markets, multiple 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 10-15 years, 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. The imposition by the U.S. of tariffs on goods imported from foreign countries and reciprocal tariffs levied on U.S. goods by those countries also may lead to volatility and instability in domestic and foreign markets. 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, cybersecurity incidents, 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 a Fund to sell investments at an inopportune time to meet redemption requests by shareholders and may increase a Fund's portfolio turnover, which could increase the costs that a Fund incurs and lower a Fund's performance. Even when securities markets perform well, there is no assurance that the investments held by a Fund will increase in value along with the broader market.

Policy changes by the U.S. government and/or Federal Reserve and economic and political changes within the U.S. and abroad, such as inflation, changes in interest rates, recessions, 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 or occurrence of a federal government shutdown and threats or the occurrence of a failure to increase the federal government's debt limit, which could result

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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 a 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, during periods of significant volatility,
 the risks discussed herein associated with an investment in a
 Fund may be increased. National economies are substantially
 interconnected, as are global financial markets, which creates the possibility that conditions in one country or region
 might adversely impact issuers in a different country or region. However, the interconnectedness of economies and/or markets
 may be changing, which may impact such economies and markets in ways that cannot be foreseen at this time.

Some countries, including the U.S., have adopted more protectionist trade policies, including trade tariffs and other trade barriers, which is a trend that appears to be continuing globally. Slowing global economic growth, the rise in protectionist trade policies, inflationary pressures, changes to some major international trade agreements, risks associated with trade agreements between countries and regions, including the U.S. and other foreign nations, political or economic dysfunction within some countries or regions, including the U.S., and dramatic changes in consumer sentiment and commodity and currency prices could affect the economies and markets of many nations, including the U.S., in ways that cannot necessarily be foreseen at the present time and may create significant market volatility. In addition, these policies, including the impact on the U.S. dollar, may decrease foreign demand for U.S. assets, which could have a negative impact on certain issuers and/or industries. The U.S. has imposed or threatened to impose tariffs and other trade barriers on imports of certain categories of goods from Canada, Mexico, and European countries. The U.S. also has imposed or threatened to impose tariffs and other trade barriers on imports of certain categories of goods from China, has restricted sales of certain categories of goods to China, and has established barriers to investments in China. These countries have imposed or threatened to impose retaliatory tariffs on U.S. goods. If relations between the U.S. and these and other foreign countries do not improve or continue to deteriorate, markets and individual securities may be severely affected both regionally and globally, and the value of a Fund's investments may go down.

Although interest rates were unusually low in the U.S. and abroad for a period of time, in 2022, the U.S. Federal Reserve (the "Federal Reserve") and certain foreign central banks began to raise interest rates as part of their efforts to address rising inflation. The Federal Reserve and certain foreign central banks subsequently started to lower interest rates in September 2024, though economic or other factors, such as Federal Reserve policy changes, could have an effect on this. It is difficult to accurately predict the pace at which interest rates might change, the timing, frequency or magnitude of any such changes in interest rates, or when such changes might stop or again reverse course. Additionally, various economic and political factors could cause the Federal Reserve or foreign central 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 changes in interest rates could lead to significant market volatility or reduce liquidity in certain sectors of the market. It is difficult to predict the impact on various markets of significant interest rate changes or other significant policy changes. Deteriorating economic fundamentals may increase the risk of default or insolvency of particular issuers, negatively impact market value, increase market volatility, cause credit spreads to widen, reduce bank balance sheets and cause unexpected changes in interest rates. Any of these could cause an increase in market volatility, reduce liquidity across various sectors or markets or decrease confidence in the markets. Also, regulators have expressed concern that changes in interest rates may cause investors to sell fixed income securities faster than the market can absorb them, contributing to price volatility. Historical patterns of correlation among asset classes may break down in unanticipated ways during times of high volatility, disrupting investment programs and potentially causing losses.

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Tensions, war or open conflict between nations, such as between Russia and Ukraine, in the Middle East or in eastern Asia could affect the economies of many nations, including the United States. The duration of ongoing hostilities in the Middle East and between Russia and Ukraine, and any sanctions and related events cannot be predicted. Those events present material uncertainty and risk with respect to markets globally and the performance of a Fund and its investments or operations could be negatively impacted whether or not a Fund invests in securities of issuers located in or with significant exposure to the countries or regions directly affected.

Regulators in the U.S. have adopted a number of changes to regulations involving the markets and issuers, some of which apply to a Fund. The full effect of various newly adopted regulations is not currently known. Due to the scope of regulations being adopted, certain of these changes could limit a Fund's ability to pursue its investment strategies or make certain investments, may make it more costly for a Fund to operate, or adversely impact performance. Additionally, it is possible that recently adopted regulations could be further revised or rescinded, which creates material uncertainty regarding their impact to a Fund.

Further, advancements in technology may also adversely impact market movements and liquidity and may affect the overall performance of a Fund. For example, the advanced development and increased regulation of artificial intelligence may impact the economy and the performance of a Fund. As artificial intelligence is used more widely, the value of the Fund's holdings may be impacted, which could impact the overall performance of a Fund.

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 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. China's economy, which has been sustained through debt-financed spending on housing and infrastructure, appears to be experiencing a significant slowdown and growing at a lower rate than prior years. While the Chinese government appears to be taking measures to address these issues, due to the size of China's economy, the resolution of these issues could impact a number of other countries.

Certain illnesses spread rapidly and have the potential to significantly and adversely affect the global economy. The impact of epidemics and/or pandemics that may arise in the future could negatively affect the economies of many nations, individual companies and the global securities and commodities markets, including their liquidity, in ways that cannot necessarily be foreseen at the present time and could last for an extended period of time.

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 storms 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 in ways that cannot be foreseen, 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. Losses related to climate change 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.

**Market** **Timing Risk**<br>A Fund is subject to the risk of market timing activities by investors due to the nature of its investments, which requires a Fund in certain instances to fair value certain of its investments. Some investors may engage in frequent short-term trading in a Fund to take advantage of any price differentials that may be reflected in the NAV of a Fund's shares. Frequent trading by Fund shareholders poses risks to other shareholders in a Fund, including (i) the dilution of a Fund's NAV, (ii) an increase in a Fund's expenses, and (iii) interference with the ability to execute efficient investment strategies. While the Manager monitors trading in a Fund, there is no guarantee that it can detect all market timing activities.

**Mortgage-Backed and Mortgage-Related Securities Risk**<br>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. 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. These securities tend to be more sensitive to changes in interest rates than other types of debt securities. 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

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other 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 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 rising interest rates, a 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 a Fund.

• Adjustable
 Rate Mortgages ("ARMs") Risk. ARMs contain maximum and minimum rates beyond which the mortgage interest
 rate may not vary over the lifetime of the security. In addition, many ARMs provide for additional limitations on the maximum
 amount by which the mortgage interest rate may adjust for any single adjustment period. Alternatively, certain ARMs
 contain limitations on changes in the required monthly payment. In the event that a monthly payment is not sufficient to
 pay the interest accruing on an ARM, any excess interest is added to the principal balance of the mortgage loan, which is repaid
 through future monthly payments. If the monthly payment for such an instrument exceeds the sum of the interest accrued
 at the applicable mortgage interest rate and the principal payment required at such point to amortize the outstanding principal
 balance over the remaining term of the loan, the excess is used to reduce the then-outstanding principal balance of the
 ARM. In addition, certain ARMs may provide for an initial fixed, below-market or teaser interest rate. During this initial fixed-rate
 period, the payment due from the related mortgagor may be less than that of a traditional loan. However, after the teaser
 rate expires, the monthly payment required to be made by the mortgagor may increase significantly when the interest rate
 on the mortgage loan adjusts. This increased burden on the mortgagor may increase the risk of delinquency or default on the
 mortgage loan and in turn, losses on the mortgage-backed security into which that loan has been bundled. During periods of
 rising interest rates, changes in the coupon rate lag behind changes in the market rate. During periods of extreme fluctuations
 in interest rates, the resulting fluctuation of ARM rates could affect the ARM's market value. Most ARMs generally have
 annual reset limits or "caps," for example of 100 to 200 basis points. Fluctuation in interest rates above these levels could
 cause such mortgage-backed securities to "cap out" and to behave more like long-term, fixed-rate debt securities. During
 periods of declining interest rates, the coupon rates may readjust downward, and result in lower yields. Because of this feature,
 the value of ARMs will likely not rise during periods of declining interest rates to the same extent as fixed-rate instruments.

• Collateralized
 Mortgage Obligation ("CMOs") Risk. Investments in CMOs, including real estate mortgage investment conduits
 ("REMICs"), are subject to the same risks as direct investments in the underlying mortgage-backed securities. In addition,
 CMOs may be less liquid and exhibit greater price volatility than other types of mortgage-backed or asset-backed securities.
 CMOs may offer a higher yield than U.S. government securities, but they may also be subject to greater price fluctuation
 and credit risk, and may be highly sensitive to changes in interest rates. In addition, CMOs typically will be issued in a
 variety of classes or series, which have different maturities and are retired in sequence. While CMO collateral is generally issued
 by the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation or the Federal National
 Mortgage Association, the CMO itself may be issued by a private party, such as a brokerage firm, that is not covered by
 any government guarantees. 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, and the Fund could experience delays in liquidating
 its position. 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.

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

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• Exchange-Traded
 Funds ("ETFs") Risk. Because ETFs are listed on an exchange, they may be subject to the following risks
 that do not apply to conventional funds: (1) the market price of an ETF's shares may trade at a discount or premium to its NAV;
 (2) an active trading market for an ETF's shares may not develop or be maintained; or (3) trading of an ETF's shares may be
 halted if the listing exchange's officials deem such action appropriate, the shares are delisted from the exchange, or the activation
 of market-wide "circuit breakers" (which are tied to large decreases in stock prices) halts stock trading generally. An ETF
 that tracks an index may not precisely replicate the returns of that index and may not be permitted to sell poorly performing
 stocks that are included in its index. An actively-managed ETF's performance will reflect its adviser's ability to make investment
 decisions that are suited to achieving the ETF's investment objectives. Future legislative or regulatory changes, including
 changes in taxation, could impact the operation of ETFs.

• Government
 Money Market Funds Risk. Investments in government money market funds are subject to interest rate risk,
 credit risk, and market risk. Interest
 rate risk is the risk that rising interest rates could cause the Fund's investment to lose value.
 A decline in short-term interest rates or a low interest rate environment would lower a government money market fund's
 yield and the return on the Fund's investment.

**Prepayment and Extension Risk**<br>Prepayment and extension risk is the risk that a bond or other fixed-income security or investment might, in the case of prepayment risk, be called or otherwise converted, prepaid or redeemed before maturity and, in the case of extension risk, that the investment might not be prepaid as expected. 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 or otherwise call, convert or redeem the security prior to the security 's expected maturity date. If this occurs, no additional interest will be paid on the investment, and 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. Any of these may result in a reduced yield to a Fund. 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.<br>Conversely, extension risk is the risk that, as a result of higher interest rates or other factors, borrowers decrease prepayments. This may result in the extension of a security's effective maturity, increase the risk of default or delayed payment, heighten interest rate risk and increase the potential for a decline in an investment's price. A rise in interest rates or lack of refinancing opportunities can cause the fund's average maturity to lengthen unexpectedly. This would increase the fund's sensitivity to rising rates and its potential for price declines. 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. Extensions of obligations could cause a Fund to exhibit additional volatility and hold securities paying lower-than-market rates of interest. Either case could hurt a Fund's performance.

**Redemption Risk**<br>A Fund may experience periods of heavy redemptions that could cause a Fund to sell assets at inopportune times or at a loss or a depressed value. Heavy redemptions, whether by a few large investors or many smaller investors, could hurt a Fund's performance. Redemption risk is greater to the extent that one or more investors or intermediaries control a large percentage of investments in a Fund, have short investment horizons, or have unpredictable cash flow needs. The risk of loss is also greater if redemption requests are frequent, occur in times of overall market turmoil or declining prices for the securities sold, or when the securities a Fund wishes to sell are illiquid. The ability or willingness of dealers and other institutional investors to buy or hold fixed-income securities or otherwise to "make a market" in debt securities may also be reduced. These factors, along with an inability to find a ready buyer, or legal restrictions on a security's resale, may result in decreased liquidity and increased volatility in the fixed-income markets, and heightened redemption risk. Certain securities that were liquid when purchased may later become illiquid, particularly in times of overall economic distress. Redemption risk is heightened if a Fund invests in emerging market securities, which are generally less liquid than the securities of U.S. and other developed markets. During periods of heavy redemptions, a Fund may borrow funds through the interfund credit facility, or from a bank line of credit, which may increase costs. The sale of assets to meet redemption requests may create net capital gains or losses, which could cause a Fund to have to distribute substantial capital gains.

**Reliance on Corporate Management and Financial Reporting Risk**<br>The sub-advisor may select investments for a Fund on the basis of information and data made directly available to the sub-advisor by the issuers of securities or through sources other than the issuers such as collateral pool servicers. The sub-advisor has no ability to independently verify such information and data and is therefore dependent upon the integrity of the management of these issuers and of such servicers and the financial and collateral performance reporting processes in general. Information and data provided

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regarding a particular issuer may not necessarily contain information that the sub-advisor normally considers when evaluating the investment prospects of a company. Investors, such as a Fund, can incur material losses as a result of corporate mismanagement, fraud and accounting irregularities.

**Repurchase Agreement Risk**<br>The use of repurchase agreements involves counterparty risk and credit risk. Repurchase agreements may exhibit the economic characteristics of loans by a Fund. The obligations of a seller under the repurchase agreement are not guaranteed, and there is a risk that the seller may fail to repurchase the underlying securities, whether because of the seller's bankruptcy or otherwise. In such event, a Fund would attempt to exercise its rights with respect to the underlying collateral, including possible sale of the securities. A Fund permits various forms of securities as collateral with values that fluctuate and that are not issued or guaranteed by the U.S. government. A Fund may incur various expenses in connection with the exercise of its rights and may be subject to various delays and risks of loss, including: (a) possible declines in the value of the underlying collateral, (b) possible reduction in levels of income and (c) lack of access to the securities (if they are held through a third-party custodian) and possible inability to enforce a Fund's rights. There also are risks that a counterparty may default at a time when the collateral has declined in value, or a counterparty may become insolvent and subject to liquidation, which may affect the Fund's right to control the collateral.

**Restricted Securities Risk**<br>Securities not registered in the U.S. under the Securities Act of 1933, as amended (the "Securities Act"), or in non-U.S. markets pursuant to similar regulations, including "Section 4(a)(2)" securities and "Rule 144A" securities, are restricted as to their resale. Such securities may not be listed on an exchange and may have no active trading market. The prices of these securities may be more difficult to determine than publicly traded securities and these securities may involve heightened risk as compared to investments in securities of publicly traded companies. They may be more difficult to purchase or sell at an advantageous time or price because such securities may not be readily marketable in broad public markets, or may have to be held for a certain time period before they can be resold. A Fund may not be able to sell a restricted security when the sub-advisor considers it desirable to do so and/or may have to sell the security at a lower price than a Fund believes is its fair market value. A restricted security that was liquid at the time of purchase may subsequently become illiquid. In addition, transaction costs may be higher for restricted securities and a Fund may receive only limited information regarding the issuer of a restricted security. A Fund may have to bear the expense of registering restricted securities for resale and the risk of substantial delays in effecting the registration. If, during such a delay, adverse market conditions were to develop, a Fund might obtain a less favorable price than prevailed at the time it decided to seek registration of the security.

**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 borrower 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 a 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 a 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, a 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, a 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 a Fund has an interest.

If an obligation in which a Fund invests, such as a secured loan, is foreclosed, a 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 a Fund would bear the risk that the collateral may decline in value while a Fund is holding it.

Some obligations in which a 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, a 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 able to sell participations in

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unsecured bank loans. Because loan participations typically represent direct participation, together with other parties, in a loan to a corporate borrower, through which a 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 Selection Risk**<br>Securities selected for a 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. The value of a security can be more or less volatile than the market as a whole, and a Fund's strategy may fail to produce the intended results. It may not be possible to predict, or to hedge against, a widening in the yield spread of the securities selected for a Fund. This could result in a Fund's underperformance compared to other funds with similar investment objectives.

**Stressed, Distressed and Defaulted Securities Risk**<br>The Fund may invest in the debt securities of financially stressed or distressed issuers, which are companies that are, or might be, involved in reorganizations or financial restructurings, either out of court or in bankruptcy. The Fund may also invest in debt securities of issuers that are in default or in bankruptcy. Investments in the securities of financially stressed or distressed issuers are speculative and involve substantial risks. These securities may present a substantial risk of default or may be in default at the time of investment. In addition, these securities may fluctuate more in price, and are typically less liquid than other higher-rated debt securities. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in the payment of principal or interest on its portfolio holdings. The Fund is also subject to significant uncertainty as to when, and in what manner, and for what value obligations evidenced by securities of financially stressed or distressed issuers will eventually be satisfied (e.g., through a liquidation of the issuer's assets, an exchange offer or plan of reorganization, or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is made or plan of reorganization is adopted with respect to stressed or distressed debt held by the Fund, there can be no assurance that the securities or other assets received by the Fund in connection with such exchange offer or plan of reorganization will not have a lower value or income potential than may have been anticipated when the investment was made or no value. Defaulted obligations might be repaid only after lengthy workout or bankruptcy proceedings during which the issuer might not make any interest or other payments. In any such proceeding relating to a defaulted obligation, the Fund may lose its entire investment or may be required to accept cash or securities with a value substantially less than its original investment. Moreover, any securities received by the Fund upon completion of a workout or bankruptcy proceeding may be illiquid, speculative, or restricted as to resale. Similarly, if the Fund participates in negotiations with respect to any exchange offer or plan of reorganization with respect to the securities of a stressed or distressed issuer, the Fund may be restricted from disposing of such securities. To the extent that the Fund becomes involved in such proceedings, the Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. Also among the risks inherent in investments in a troubled issuer is that it frequently may be difficult to obtain information as to the true financial condition of such issuer. The Sub-Advisor's judgments about the credit quality of a financially stressed or distressed issuer and the relative value of its securities may prove to be wrong.

The level of analytical sophistication, both financial and legal, necessary for successful investment in stressed or distressed assets is particularly high. There is no assurance that the Fund will correctly evaluate the value of the assets collateralizing the Fund's investments or the prospects for a successful reorganization or similar action in respect of any company. In any reorganization or liquidation proceeding relating to a company in which the Fund invests, the Fund may lose its entire investment, may be required to accept cash or securities with a value less than the Fund's original investment and/or may be required to accept payment over an extended period of time. Troubled company investments and other stressed or distressed asset-based investments require active monitoring.

**Structured Products and Structured Notes Risk**<br>The cash flow or rate of return on a structured investment may be determined by applying a multiplier to the rate of total return on the underlying investments or referenced indicator. Application of a multiplier is comparable to the use of financial leverage, a speculative technique. Leverage magnifies the potential for gain and the risk of loss. As a result, a relatively small decline in the value of the underlying investments or referenced indicator could result in a relatively large loss in the value of a structured product. Holders of structured products indirectly bear risks associated with the underlying investments, index or reference obligation, and are subject to counterparty risk. A Fund generally has the right to receive payments to which it is entitled only from the structured product, and generally does not have direct rights against the issuer. While certain structured investment vehicles enable the investor to acquire interests in a pool of securities without the brokerage and other expenses associated with directly holding the same securities, investors in structured vehicles generally pay their share of the investment vehicle's administrative and other expenses.

Structured products are generally privately offered and sold, and thus, are not registered under the securities laws. Certain structured products may be thinly traded or have a limited trading market and may have the effect of increasing a Fund's illiquidity to the extent that the Fund, at a particular point in time, may be unable to find qualified buyers for these securities. In addition to the general risks associated with fixed income securities discussed herein, structured products carry additional risks including, but not limited to: (i) the possibility that distributions from underlying investments will not be adequate to make interest or other payments; (ii) the quality of

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the underlying investments may decline in value or default; (iii) the possibility that the security may be subordinate to other classes of the issuer's securities; and (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.

Structured notes are derivative securities for which the amount of principal repayment and/or interest payments is based on the movement of one or more "factors". These factors may include, but are not limited to, currency exchange rates, interest rates (such as the prime lending rate or another industry-standard floating-rate), referenced bonds and stock indices. Some of these factors may or may not correlate to the total rate of return on one or more underlying instruments referenced in such notes. In some cases, the impact of the movements of these factors may increase or decrease through the use of multipliers or deflators.

Investments in structured notes involve risks including interest rate risk, credit risk and market risk. Depending on the factor used and the use of multipliers or deflators, changes in interest rates and movement of the factor may cause significant price fluctuations. Additionally, changes in the reference instrument or security may cause the interest rate on the structured note to be reduced to zero and any further changes in the reference instrument may then reduce the principal amount payable on maturity. In the case of structured notes where the reference instrument is a debt instrument, such as credit-linked notes, the Fund will be subject to the credit risk of the issuer of the reference instrument and the issuer of the structured note.

The Sub-Advisor manages a wide variety of accounts and investment strategies. Investments made on behalf of one client or strategy can raise conflict of interest issues with other of the Sub-Advisor's clients or strategies. For example, the Sub-Advisor may cause a client to purchase an issuer's debt security and cause another client to purchase a different debt security of the same issuer, such as a different bond of the issuer or different tranche of a mortgage-backed security that is subordinated to the investment held by other clients.

**Unrated Securities Risk**<br>Because a Fund may purchase securities that are not rated by any rating organization, the sub-advisor, after assessing their credit quality, may internally assign ratings to certain of those securities, in categories of those similar to those of rating organizations. Investing in unrated securities involves the risk that the sub-advisor may not accurately evaluate the security's comparative credit rating. To the extent that a Fund invests in unrated securities, a Fund's success in achieving its investment objective may depend more heavily on the sub-advisor's credit analysis than if a Fund invested exclusively in rated securities. Less public information is typically available about unrated securities or issuers. Some unrated securities may not have an active trading market or may be difficult to value, which means a Fund might have difficulty selling them promptly at an acceptable price. Unrated securities may also be subject to greater liquidity risk and price volatility.

**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 stated interest rate and face value at maturity, not its current market price. The market prices for such securities are not guaranteed and will fluctuate with changes in interest rates and the credit rating of the U.S. government. Additionally, circumstances could arise that would prevent the payment of interest or principal. This could result in losses to a Fund. Investments in securities issued by government-sponsored enterprises, such as Fannie Mae, Freddie Mac, FHLB, FFCB and GNMA, 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 FHLB or the FFCB; (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 a 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 enterprises 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. The maximum potential liabilities of the issuers of some securities issued by the U.S. government or government-sponsored enterprises that are held by a Fund may greatly exceed their current resources, including any legal right to support from the U.S. Treasury, and it is possible that these issuers may not have the funds to meet their payment obligations in the future.

**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 a 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

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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. Investors who purchase or redeem Fund shares on days when a Fund is holding fair-valued securities may receive fewer or more shares, or lower or higher redemption proceeds, than they would have received if 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 a Fund determines its NAV.

**Variable and Floating Rate Securities Risk**<br>The coupons on variable and floating rate securities in which a 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. Although the impact of interest rate changes on variable and floating rate investments is intended to be mitigated by the periodic interest rate reset of those securities, variable and floating rate securities 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. In addition, because of the interest rate adjustment feature, variable and floating rate securities provide a Fund with a certain degree of protection against increases in interest rates, but a Fund will participate in any declines in interest rates as well. Thus, investing in 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.

**Comparison of Investment Policies/Restrictions**

If the proposed Reorganization occurs, the Target Fund will be managed pursuant to the fundamental and non-fundamental investment policies/restrictions of the Acquiring Fund. A "**fundamental**" investment policy/restriction is one that may not be changed without a shareholder vote. The below list includes certain non-fundamental investment policies/restrictions applicable to one or more of the Funds and is not necessarily comprehensive. The fundamental and non-fundamental investment policies/restrictions for the Funds generally are substantially similar, although there are a number of differences noted below. In addition, the Acquiring Fund has adopted the non-fundamental investment policy/ restriction set out below that the Target Fund has not. These differences are not expected to result in any changes to the management of the Target Fund. More detailed information about the Acquiring Fund's fundamental investment policies/restrictions is available in the Statement of Additional Information.

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|:---|:---|:---|:---|
| **Fundamental Investment Policies/Restrictions** | **Fundamental Investment Policies/Restrictions** | **Fundamental Investment Policies/Restrictions** | **Fundamental Investment Policies/Restrictions** |
|  **Policy/Restriction** | &nbsp;&nbsp; **Target Fund** | **Acquiring Fund** | **Differences** |
| Real Estate. | &nbsp;&nbsp; The Fund may not purchase or sell real estate. The Fund may, for clarity, (i) purchase interests in issuers which deal or invest in real estate, including limited partnership interests of limited partnerships that invest or deal in real estate, (ii) purchase securities which are secured by real estate or interests in real estate, including real estate mortgage loans, and (iii) hold and dispose of real estate or interests in real estate acquired through the exercise of its rights as a holder of securities which are secured by real estate or interests therein. (For purposes of this restriction, investments by the Fund in mortgage-backed securities and other securities representing interests in mortgage pools shall not constitute the purchase or sale of real estate.) | &nbsp;&nbsp; The Fund may not 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. | &nbsp;&nbsp; The Acquiring Fund states that it may not purchase or sell real estate limited partnerships, whereas the Target Fund does not.<br> The Target Fund also clarifies that investments in mortgage-backed securities and other securities representing interests in mortgage pools shall not constitute the purchase or sale of real estate, whereas the Acquiring Fund does not explicitly state this point. |
| Commodities. | &nbsp;&nbsp; The Fund may purchase or sell commodities to the extent permitted by applicable law from time to time. | &nbsp;&nbsp; The Fund may not 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 | &nbsp;&nbsp; The Target Fund states that it may purchase or sell commodities to the extent permitted by applicable law from time to time, while the Acquiring Fund states that it  |

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|:---|:---|:---|:---|
| **Fundamental Investment Policies/Restrictions** | **Fundamental Investment Policies/Restrictions** | **Fundamental Investment Policies/Restrictions** | **Fundamental Investment Policies/Restrictions** |
|  **Policy/Restriction** | &nbsp;&nbsp; **Target Fund** | **Acquiring Fund** | **Differences**  |
|  |  | &nbsp;&nbsp; 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). | &nbsp;&nbsp; generally cannot invest in physical commodities; however, the Acquiring Fund is not restricted from investing in physical commodities acquired as a result of ownership of securities or other instruments, or the enumerated other instruments set forth in the policy/restriction. |
| Issuing Senior Securities | &nbsp;&nbsp; The Fund may not issue any class of securities which is senior to the Fund's shares of beneficial interest, except to the extent the Fund is permitted to borrow money and except as otherwise consistent with applicable law from time to time. | &nbsp;&nbsp; The Fund may not 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. | &nbsp;&nbsp; No material differences. |
| Underwriting. | &nbsp;&nbsp; The Fund may not act as underwriter of securities of other issuers except to the extent that, in connection with the disposition of portfolio securities or in connection with the purchase of securities directly from the issuer thereof, it may be deemed to be an underwriter under certain federal securities laws. | &nbsp;&nbsp; The Fund may not 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. | &nbsp;&nbsp; No material differences. |
| Loans. | &nbsp;&nbsp; The Fund may make loans, including to affiliated investment companies, to the extent permitted by the 1940 Act, the rules and regulations thereunder and any applicable exemptive relief. The Fund may purchase loan participations or otherwise invest in loans or similar obligations, and may make loans directly to issuers, itself or as part of a lending syndicate. The Fund may purchase debt obligations or other financial instruments in which the Fund may invest consistent with its investment policies, enter into repurchase agreements, or lend its portfolio securities.  | &nbsp;&nbsp; The Fund may not 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 with respect to portfolio securities. | &nbsp;&nbsp; The Acquiring Fund states that it may lend a security or make a loan through the purchase of a portion of an issue of debt securities, whereas the Target Fund states that it may make loans directly to issuers, itself or as part of a lending syndicate. |
| Borrowing. | &nbsp;&nbsp; The Fund may borrow money to the extent permitted by applicable law from time to time.  | &nbsp;&nbsp; The Fund may not 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 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. | &nbsp;&nbsp; The Acquiring Fund includes a clarification that it may lend portfolio securities as collateral, and that the purchase of sale of the enumerated instruments shall not constitute borrowing, whereas the Target Fund does not. |
| Diversification. | &nbsp;&nbsp; No such fundamental policy. The Fund is, however, classified as a diversified fund under the 1940 Act. | &nbsp;&nbsp; The Fund may not 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 | &nbsp;&nbsp; No material differences. |

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| **Fundamental Investment Policies/Restrictions** | **Fundamental Investment Policies/Restrictions** | **Fundamental Investment Policies/Restrictions** | **Fundamental Investment Policies/Restrictions** |
|  **Policy/Restriction** | &nbsp;&nbsp; **Target Fund** | **Acquiring Fund** | **Differences**  |
|  |  | &nbsp;&nbsp; securities of any one issuer, with respect to 75% of the Fund's total assets. |  |
| Industry Concentration. | &nbsp;&nbsp; The Fund may not purchase any security if as a result 25% or more of the Fund's total assets (taken at current value) would be invested in a single industry (for purposes of this restriction, (i) bank loans and loan participations will be considered investments in the industry of the underlying borrower, (ii) investment companies are not considered to constitute an industry, and (iii) derivatives counterparties are not considered to be part of any industry). | &nbsp;&nbsp; The Fund may not 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 or guaranteed by the U.S. Government, its agencies or instrumentalities; and (ii) tax-exempt securities issued by municipalities or their agencies and authorities. | &nbsp;&nbsp; The Target Fund policy provides that bank loans and loan participations will be considered investments in the industry of the underlying borrower, investment companies do not constitute an industry, and derivatives counterparties do not constitute an industry, whereas the Acquiring Fund does not. Conversely, the Acquiring Fund policy provides that the limitation does not apply to U.S. Government, agency or instrumentality obligations, or tax-exempt securities issued by municipalities or their agencies or authorities, whereas the Target Fund does not. |
| **Non-Fundamental Investment Policies/Restrictions** | **Non-Fundamental Investment Policies/Restrictions** | **Non-Fundamental Investment Policies/Restrictions** | **Non-Fundamental Investment Policies/Restrictions** |
|  **Policy/Restriction** | &nbsp;&nbsp; **Target Fund** | **Acquiring Fund** | **Differences** |
| Investing in Illiquid Securities. | &nbsp;&nbsp; The Fund will not invest more than 15% of its net assets in illiquid investments. | &nbsp;&nbsp; The Fund may not invest more than 15% of its net assets in illiquid securities, including time deposits and repurchase agreements that mature in more than seven days. | &nbsp;&nbsp; No material differences. |
| Purchasing Securities on Margin. | &nbsp;&nbsp; No such policy. | &nbsp;&nbsp; The Fund may not 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. | &nbsp;&nbsp; This policy applies to the Acquiring Fund, but not the Target Fund. |

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**Target Fund Interpretations of Fundamental and Non-Fundamental Investment Policies/Restrictions**

For purposes of applying the terms of the Target Fund's fundamental policy with respect to concentration, the investment adviser will make reasonable determinations as to the appropriate industry classification to assign to each issuer of securities in which the Target Fund invests. As a general matter, the Target Fund considers an industry to be a group of companies whose principal activities, products or services offered give them a similar economic risk profile vis à vis issuers active in other sectors of the economy. The definition of what constitutes a particular industry is therefore an evolving one, particularly for issuers in industries that are new or are undergoing rapid development. Some issuers could reasonably fall within more than one industry category. For example, some companies that sell goods over the Internet (including issuers of securities in which the Target Fund may invest) were initially classified as Internet companies, but over time have evolved into the economic risk profiles of retail companies. The investment adviser will use its reasonable efforts to assign each issuer to the category which it believes is most appropriate. Further, the Target Fund takes the position that mortgage-backed securities and asset-backed securities, whether government-issued or privately issued, do not represent interests in any particular industry or group of industries, and therefore the 25% concentration restrictions noted above do not apply to such securities, and the Target Fund has applied its industry concentration restriction in this manner.

For purposes of the Target Fund's policies (including the fundamental policies discussed above), any actions taken or omitted or investments made in reliance on, or in accordance with, exemptive relief, no action relief, interpretive guidance or other regulatory or governmental action or guidance, shall be considered to have been taken, made, or omitted in accordance with applicable law.

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All percentage limitations and requirements (including those set forth in the fundamental policies discussed above) as to investments will apply only at the time of an investment to which the limitation or requirement is applicable and shall not be considered violated unless an excess or deficiency occurs or exists immediately after and as a result of such investment. Accordingly, any later increase or decrease resulting from a change in values, net assets or other circumstances will not be considered in determining whether any investment complies with the Target Fund's limitation or requirement. Such percentage limitations and requirements do not apply to the asset coverage test set forth in Section 18(f)(1) of the 1940 Act.

**Acquiring Fund Interpretations of Fundamental and Non-Fundamental Investment Policies/Restrictions** 

Fundamental Investment Policies/Restrictions: 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 above, securities loans will not be made if, as a result, the aggregate amount of all outstanding securities loans by the Acquiring Fund exceeds 33¹/3 % of its total assets (including the market value of collateral received).

For purposes of the Acquiring Fund's policy relating to issuing senior securities set forth above, "senior securities" are defined as Acquiring Fund obligations that have a priority over the Acquiring Fund's shares with respect to the payment of dividends or the distribution of Acquiring Fund assets. The Investment Company Act prohibits the Acquiring Fund from issuing any class of senior securities or selling any senior securities of which it is the issuer, except that the Acquiring 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 Acquiring Fund (not including borrowings for temporary purposes in an amount not exceeding 5% of the value of the Acquiring Fund's total assets). In the event that such asset coverage falls below this percentage, the Acquiring 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 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 Acquiring Fund's industry concentration policy set forth above, American Beacon may analyze the characteristics of a particular issuer and instrument and may assign an industry classification consistent with those characteristics. American Beacon may, but need not, consider industry classifications provided by third parties, and the classifications applied to Acquiring 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. American Beacon 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 Acquiring Fund's assets will be invested in securities issued by any one foreign government or supranational organization. The Acquiring Fund might invest in certain securities issued by companies in a particular industry whose obligations are guaranteed by a foreign government. American Beacon could consider such a company to be within the particular industry and, therefore, the Acquiring 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.

Non-Fundamental Investment Policies/Restrictions: 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 Prospectus, the other investment policies described in this SAI are not fundamental and may be changed by approval of the Trustees.

**Comparative Performance Information**

After the proposed Reorganization, which is subject to shareholder approval, the Target Fund will be the accounting and performance survivor. This means that the Acquiring Fund will assume and publish the operating history and performance record of the Target Fund, even after the Target Fund's liquidation. The Acquiring Fund's Y Class shares will adopt the performance history of the Target Fund's Class I shares, and the Acquiring Fund's Investor Class shares will adopt the performance history of the Target Fund's Class N shares.

**Target Fund Performance Information**<br>The following performance information provides some indication of the risks of investing in the Target Fund. The bar chart shows the performance of the Fund's Class I shares for each full calendar year since the Fund's inception. The table below shows how the average annual total returns of the Fund's shares for the periods shown compare to those of a broad-based securities market index and an additional index with characteristics relevant to the Fund. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Absent any applicable fee waivers and/or expense limitations

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(which have applied to the Fund since inception), performance would have been lower. Updated information on the Fund's investment results can be obtained at no charge by calling 877-DLine11 (877-354-6311) or by visiting the Fund's website at www.doubleline.com.

---

| | |
|:---|:---|
| **Calendar year total returns for Class I shares.** Year Ended 12/31 | **Calendar year total returns for Class I shares.** Year Ended 12/31 |
| ![](pr2681img002.jpg) | &nbsp;&nbsp;&nbsp; **Highest Quarterly Return:**<br> **7.88%** 2nd Quarter 2020<br>01/01/2015 through 12/31/2024<br> **Lowest Quarterly Return:**<br>**-10.91%** 1st Quarter 2020<br>01/01/2015 through 12/31/2024 |
| **The year-to-date total return for the Target Fund's Class I Shares as of June 30, 2025 was 3.15%.** |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **DoubleLine Floating Rate Fund – Average Annual Total Returns (As of December 31, 2024)** | **DoubleLine Floating Rate Fund – Average Annual Total Returns (As of December 31, 2024)** | **DoubleLine Floating Rate Fund – Average Annual Total Returns (As of December 31, 2024)** | **DoubleLine Floating Rate Fund – Average Annual Total Returns (As of December 31, 2024)** | **DoubleLine Floating Rate Fund – Average Annual Total Returns (As of December 31, 2024)** |
|  | **1 Year** | **5 Years** | **10 Years** | **Since** **Inception** **(February 1,** **2013)** |
| **Fund Returns Before Taxes** | **Fund Returns Before Taxes** | **Fund Returns Before Taxes** | **Fund Returns Before Taxes** | **Fund Returns Before Taxes** |
| Class I Shares | 8.10% | 4.63% | 4.04% | 3.79% |
| Class N Shares | 7.80% | 4.38% | 3.78% | 3.55% |
| **Fund Returns After Taxes on Distributions** | **Fund Returns After Taxes on Distributions** | **Fund Returns After Taxes on Distributions** | **Fund Returns After Taxes on Distributions** | **Fund Returns After Taxes on Distributions** |
| I Shares | 4.63% | 2.20% | 1.92% | 1.83% |
| **Fund Returns After Taxes on Distributions and Sale of Fund Shares** | **Fund Returns After Taxes on Distributions and Sale of Fund Shares** | **Fund Returns After Taxes on Distributions and Sale of Fund Shares** | **Fund Returns After Taxes on Distributions and Sale of Fund Shares** | **Fund Returns After Taxes on Distributions and Sale of Fund Shares** |
| I Shares | 4.72% | 2.47% | 2.14% | 2.01% |
| **Morningstar LSTA US Leveraged Loan TR USD Index (Net) (reflects no deduction for fees,** **expenses or taxes)** | **8.95%** | **5.86%** | **5.15%** | **4.81%** |
| **Bloomberg U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes)** | **1.25%** | **-0.33%** | **1.35%** | **1.52%** |

---

The Fund's after-tax returns as shown in the above table are calculated using the historical highest applicable individual U.S. federal marginal income tax rates for the period and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your tax situation and may differ from those shown. If you own shares of the Fund in a tax-advantaged account, such as a 401(k) plan or an individual retirement account (IRA), after-tax returns shown are not relevant to your investment. The "Return After Taxes on Distributions and Sale of Fund Shares" may be higher than other return figures because when a capital loss occurs upon the redemption of shares of the Fund, a tax deduction is provided that may benefit the investor. After-tax returns are for Class I shares only. After-tax returns for other classes may vary. The Morningstar LSTA US Leveraged Loan TR USD Index (formerly the S&P/LSTA Leveraged Loan Index) tracks the market-weighted performance of institutional weighted loans based on market weightings, spreads and interest payments. The Bloomberg U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. This index covers the U.S. investment-grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis. It is not possible to invest directly in an index.

**LSTA Morningstar Disclaimer** <br>The Target Fund is not sponsored, endorsed, sold or promoted by Morningstar, Inc., or any of its affiliated companies (all such entities, collectively, "**Morningstar Entities**") or the Loan Syndications and Trading Association ("**LSTA**"). The Morningstar Entities and LSTA make no representation or warranty, express or implied, to the owners of the Target Fund or any member of the public regarding the advisability of investing in leveraged loans generally or in the Target Fund in particular or the ability of the LSTA/Morningstar Leveraged Loan Index to track general leveraged loan market performance. The Morningstar Entities' only relationship to the Target Fund is the licensing of certain service marks and service names of Morningstar and of the LSTA/Morningstar Leveraged Loan Index which is determined, composed and calculated by the Morningstar Entities without regard to DoubleLine Capital or the Target Fund. The Morningstar Entities have no obligation to take the needs of DoubleLine Capital or the owners of the Target Fund into consideration in determining, composing or calculating the LSTA/Morningstar Leveraged Loan Index. The Morningstar Entities and LSTA are not responsible for and have not participated in the determination of the prices and amount

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of the Target Fund or the timing of the issuance or sale of the Target Fund or in the determination or calculation of the equation by which the Target Fund is converted into cash. The Morningstar Entities and LSTA have no obligation or liability in connection with the administration, marketing or trading of the Target Fund.

THE MORNINGSTAR ENTITIES AND LSTA DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE LSTA/MORNINGSTAR LEVERAGED LOAN INDEX OR ANY DATA INCLUDED THEREIN AND HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. THE MORNINGSTAR ENTITIES AND LSTA MAKE NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY DOUBLELINE, OWNERS OR USERS OF THE TARGET FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE LSTA/ MORNINGSTAR LEVERAGED LOAN INDEX OR ANY DATA INCLUDED THEREIN. THE MORNINGSTAR ENTITIES AND LSTA MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE LSTA/MORNINGSTAR LEVERAGED LOAN INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL THE MORNINGSTAR ENTITIES OR LSTA HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES

**Acquiring Fund Performance Information** 

The bar chart and table below provide an indication of risk by showing changes in the Fund's performance over time. The bar chart shows how the Fund's performance has varied from year to year. The table shows how the Fund's average annual total returns compare to a broad-based securities market index, as well as an additional market index with characteristics that are similar to those of the Fund, for the periods indicated. The current sub-advisor began managing the Fund on June 21, 2025. Performance through June 20, 2025 reflects the Fund's performance under the management of the sub-advisors that managed the Fund from (i) December 11, 2015 through December 30, 2022, and (ii) December 31, 2022 through June 20, 2025, respectively.

Each of the Fund's share classes commenced operations on December 11, 2015. On that date, the Fund acquired all the assets and assumed all the liabilities of the Fund's predecessor. The R5 Class shares of the Fund have adopted the performance history and financial statements of the Institutional Class shares of the Fund's predecessor.

In the bar chart and table below, as applicable, for the period prior to December 11, 2015, the performance of the Fund's R5 Class, Investor Class, A Class, C Class and Y Class shares reflects the returns of the Institutional Class shares of the Fund's predecessor. The newer share classes would have had similar annual returns to the Institutional Class shares of the Fund's predecessor because the shares of each class represent investments in the same portfolio securities. However, the Institutional Class shares of the Fund's predecessor had different expenses than the newer share classes, which would affect performance. To the extent that the Institutional Class shares of the Fund's predecessor had lower expenses than the newer share classes, the performance of the Institutional Class shares of the Fund's predecessor would likely have been higher than the newer share class would have realized during the same period. The R5 Class, Investor Class, A Class, C Class, and Y Class performance shown in the table has not been adjusted for differences in operating expenses between those share classes and the predecessor fund's Institutional Class shares, but the A Class and C Class shares performance has been adjusted for the impact of the maximum applicable sales charge.

C Class shares automatically convert to A Class shares 8 years after purchase, if the conversion is available through your financial intermediary. In the table below, the performance for C Class shares reflects the performance as though C Class shares were held for the full 10-year period. You may obtain updated performance information on the Fund's website at www.americanbeaconfunds.com. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.

---

| | |
|:---|:---|
| **Calendar year total returns for R5 Class Shares.** Year Ended 12/31 | **Calendar year total returns for R5 Class Shares.** Year Ended 12/31 |
| ![](pr2681img003.jpg) | &nbsp;&nbsp;&nbsp; **Highest Quarterly Return:**<br>**9.70%** 2nd Quarter 2020<br>1/1/2015 through 12/31/2024<br> **Lowest Quarterly Return:**<br>**-15.87%** 1st Quarter 2020<br>1/1/2015 through 12/31/2024 |
| **The calendar year-to-date total return as of** **June 30, 2025 was** **-1.53%.** |  |

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**Average annual total returns** for periods ended December 31, 2024

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Inception Date of Class** | **1 Year** | **5 Years** | **10 Years** |
| **R5 Class** | **12/03/2012** |  |  |  |
| Returns Before Taxes |  | 6.78% | 3.54% | 4.08% |
| Returns After Taxes on Distributions |  | 2.24% | 0.43% | 1.34% |
| Returns After Taxes on Distributions and Sales of Fund Shares |  | 3.93% | 1.34% | 1.91% |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Inception Date of Class** | **1 Year** | **5 Years** | **10 Years** |
| **Share Class** (Before Taxes) |  |  |  |  |
| A | 12/11/2015 | 3.88% | 2.72% | 3.50% |
| C | 12/11/2015 | 4.70% | 2.46% | 3.05% |
| Y | 12/11/2015 | 6.73% | 3.46% | 3.99% |
| Investor | 12/11/2015 | 6.40% | 3.18% | 3.75% |

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| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Years** | **10 Years** |
| **Index** (Reflects no deduction for fees, expenses or taxes) |  |  |  |
| Bloomberg US Aggregate Bond Index | 1.25% | -0.33% | 1.35% |
| S&P UBS Leveraged Loan Index | 9.05% | 5.73% | 5.13% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local income taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The return after taxes on distributions and sale of Fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period. If you are a tax-exempt entity or hold your Fund shares through a tax-deferred arrangement, such as an individual retirement account ("IRA") or a 401(k) plan, the after-tax returns do not apply to your situation. After-tax returns are shown only for R5 Class shares of the Fund; after-tax returns for other share classes will vary.

**Capitalization**

The following table shows the capitalization of the Target Fund and the Acquiring Fund as of August 31, 2025, and the Acquiring Fund on a pro forma combined basis as of August 31, 2025, after giving effect to the proposed Reorganization. The table is for informational purposes only. The capitalization of the Funds is likely to be different on the Closing Date due to purchase and redemption activity in the Target Fund and the Acquiring Fund.

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| | | | |
|:---|:---|:---|:---|
|  | **Net Assets** | **Net Asset Value Per Share** | **Shares Outstanding** |
| DoubleLine Floating Rate Fund – Class I shares | $93208297 | $8.99 | 10365034 |
| American Beacon DoubleLine Floating Rate Income Fund – Y Class shares | $26212666 | $7.37 | 3557700 |
| Adjustments | $0 | $0 | 0 |
| Pro forma American Beacon DoubleLine Floating Rate Income Fund – Y Class shares (assuming the proposed Reorganization is approved) | $119420963 | $8.58 | 13922734 |
| DoubleLine Floating Rate Fund – Class N shares | $17936432 | $9.02 | 1988604 |
| American Beacon DoubleLine Floating Rate Income Fund – Investor Class shares | $8418553 | $7.34 | 1146270 |
| Adjustments | $0 | $0 | 0 |
| Pro forma American Beacon DoubleLine Floating Rate Income Fund – Investor Class shares (assuming the proposed Reorganization is approved) | $26354985 | $8.41 | 3134874 |

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**After careful consideration, the Target Trust Board unanimously approved the Reorganization Plan with respect to the DoubleLine Floating Rate Fund. Accordingly, the Target Trust Board has submitted the Reorganization Plan for approval by this Fund's shareholders. The Target Trust Board recommends that you vote "FOR" Proposal 1.** 

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**PROPOSAL 2: TO APPROVE THE REORGANIZATION PLAN TO REORGANIZE THE DOUBLELINE SELECT INCOME FUND, A** **SERIES OF THE TARGET TRUST, WITH AND INTO THE AMERICAN BEACON DOUBLELINE SELECT INCOME FUND, A NEWLY** **CREATED SERIES OF THE ACQUIRING TRUST**

This Proposal 2 requests your approval of the Reorganization Plan, pursuant to which the DoubleLine Select Income Fund (the "**Target Fund**") will be reorganized with and into the American Beacon DoubleLine Select Income Fund (the "**Acquiring Fund**"), which is a newly created series of the Acquiring Trust. Prior to October 28, 2025, the DoubleLine Select Income Fund was named DoubleLine Infrastructure Income Fund.

In considering whether you should approve this Proposal, you should note the following:

**<u>Investment Objectives, Policies, Strategies and Risks of the Funds</u>**

• The
 Target Fund and Acquiring Fund pursue an identical investment objective: to seek long-term total return while striving
 to generate current income. Each Fund's investment objective is "non-fundamental," which means that it may be
 changed by the applicable Fund's Board of Trustees without the approval of Fund shareholders.

• The
 Target Fund and the Acquiring Fund have substantially similar principal investment strategies and policies/restrictions.
 Under normal circumstances, the Target Fund invests, and the Acquiring Fund will invest, at least 50%
 of its net assets (plus the amount of any borrowings for investment purposes) in "Infrastructure Investments." Each
 Fund considers Infrastructure Investments to include any assets or projects that support the operation, function, growth
 or development of a community or economy. Each Fund may invest without limit in Infrastructure Investments in
 the United States or in foreign countries, including emerging market countries. However, each Fund generally seeks to
 invest principally in instruments denominated in  U.S. dollars. Each Fund may invest in debt obligations, income-producing
 instruments and infrastructure-related investments of any kind, including, without limitation, (i) project
 bonds; (ii) corporate obligations; (iii) loans; (iv) mortgage-backed securities; (v) asset-backed securities of any kind
 (including securities collateralized by installment loan contracts and/or leases of various types of real and personal property,
 such as aircraft and cellular towers, and consumer loans); (vi) foreign corporate securities, including emerging market
 securities; (vii) enhanced equipment trust certificates and equipment trust certificates; (viii) debt obligations issued
 or guaranteed by governments or governmental agencies; (ix) credit-linked notes; (x) municipal bonds; (xi) pass-through
 notes; (xii) perpetual maturity bonds; and (xiii) other instruments bearing fixed, floating, or variable interest
 rates of any maturity. Each Fund may invest in any level of the capital structure of an issuer of asset-backed securities,
 including the equity or "first loss" tranche. Loans include, without limitation, secured and unsecured senior loans,
 term loan Bs, mezzanine, second lien, and other subordinated loans, loan participations and assignments, and other
 fixed and floating rate loans. Each Fund may use derivatives transactions for any purpose, including to create efficient
 investment exposure, create investment leverage, hedge against portfolio exposures, create indirect long or short
 positions as a substitute for a cash investment, to gain indirect long or short exposures to interest rates, issuers, or currencies,
 or to manage the Fund's duration or adjust the Fund's exposure to changes in market interest rates.

• The
 Acquiring Fund discloses that it may invest in "covenant-lite" obligations, based on the types of lender protections and
 borrower obligations in the loan agreements, and that it may invest in securities that are restricted as to resale, whereas the
 Target Fund does not. However, the Target Fund does refer to covenant-lite loans in its principal risks. Both the Target Fund and
 the Acquiring Fund may invest in other investment companies, including open-end and closed-end investment companies and
 exchange-traded funds, and investment companies managed by the respective adviser, although the Acquiring Fund additionally
 discloses that it may invest in a government money market fund advised by the Manager. Both Funds disclose that  DoubleLine
 Capital intends, under normal market conditions, to construct an investment portfolio with a dollar-weighted average effective
 duration of no less than two years and no more than ten years.

• Prior
 to October 28, 2025 (the "Effective Date"), the Target Fund was known as the  DoubleLine Infrastructure Income Fund,
 and had a policy to invest at least 80% of its net assets, (plus the amount of any borrowings for investment purposes)
 in "Infrastructure Investments." In addition, prior to the Effective Date, the Target Fund's principal investment strategies
 did not specifically state that, consistent with the Target Fund's ability to invest in a variety of asset-backed securities,
 the Target Fund may invest in asset-backed securities collateralized by consumer loans. However, effective as of
 the Effective Date: (i) the Target Fund's name changed to the DoubleLine Select Income Fund; (ii) the Target Fund rescinded
 its 80% policy, and instead adopted a policy to invest at least 50% of its net assets (plus the amount of any borrowings
 for investment purposes) in "Infrastructure Investments," and (iii) the Target Fund revised its principal investment
 strategies to clarify that the Target Fund may invest in asset-backed securities collateralized by consumer loans.
 Each of these changes are consistent with the Acquiring Fund's principal investment strategies. Accordingly, the principal
 investment strategies of the Target Fund below, and the comparison to the Acquiring Fund, reflect the changes
 that became effective on the Effective Date.

• Although the Funds describe and organize them differently, the principal risks associated with investments in the Target Fund and the Acquiring Fund are substantially similar because the Funds have identical investment objectives and substantially similar principal investment strategies. In addition, as the Acquiring Fund and Target Fund have made different determinations regarding the principal risks, the Acquiring Fund and Target Fund each disclose certain risks that the other does not.

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**<u>Manager, Sub-Advisor and Other Service Providers</u>**

• DoubleLine
 Capital LP ("DoubleLine Capital") currently serves as the investment adviser for the Target Fund. After the proposed
 Reorganization, American Beacon Advisors, Inc. ("American Beacon" or the "Manager") will serve as the manager
 for the Acquiring Fund and DoubleLine Capital will serve as the sub-advisor for the Acquiring Fund. In particular,
 the portfolio managers at DoubleLine Capital who are jointly and primarily responsible for the day to day portfolio
 management of the Target Fund will also serve in that capacity for the Acquiring Fund. The Reorganization will
 shift management oversight responsibility for the Target Fund from DoubleLine Capital to American Beacon. DoubleLine
 Capital will continue to manage the Acquiring Fund on a day-to-day basis, and American Beacon will be responsible
 for overseeing the management of the Acquiring Fund by DoubleLine Capital. For a detailed description of DoubleLine
 Capital and American Beacon, please see "Additional Information about the Funds – Service Providers" below.

• The
 principal underwriter, administrator, custodian and fund accounting agent and transfer agent for the Target Fund and
 the Acquiring Fund are different. The Target Fund and the Acquiring Fund both currently have the same auditor, although
 the Target Trust Board has appointed Deloitte & Touche  LLP as the Target Fund's independent registered public accounting
 firm for the fiscal year ending March 31, 2026. See "Additional Information About the Funds – Service Providers"
 below for further information.

• Resolute
 Investment Distributors, Inc. ("RID") is the principal underwriter for the shares of the Acquiring Fund and will act
 as the Acquiring Fund's agent in connection with the continuous offering of shares of the Acquiring Fund. The Acquiring
 Fund's distributor has no obligation to sell any specific quantity of the Acquiring Fund's shares. RID is affiliated
 with American Beacon through common ownership.

**<u>Fees and Expenses of the Fund</u>**

• As
 reflected in the tables setting forth information regarding comparative expense ratios under "Comparative Fee and Expense
 Tables" below, it is anticipated that, following the Reorganization, the gross total annual fund operating expense
 ratio ("Total Expense Ratio") of each share class of the Acquiring Fund will be slightly higher than the Total Expense
 Ratio of the corresponding share class of the Target Fund.

• However,
 as reflected in the tables below, the total annual fund operating expense ratio after fee waivers and/or expense
 reimbursements ("Net Expense Ratio") for the Acquiring Fund's  Y Class shares after the Reorganization will be the same as the Net
 Expense Ratio for the Target Fund's Class I Shares, and the Net Expense Ratio for the Acquiring Fund's
 Investor Class shares after the Reorganization will also be the same as the Net Expense Ratio of the Target Fund's N
 Shares.

• The
 Target Fund pays  DoubleLine Capital an advisory fee at the annual rate of 0.50% on the Fund's average daily net assets.
 The Acquiring Fund fee schedules are structured so that the Acquiring Fund will pay a combined management fee
 rate to American Beacon and sub-advisory fee rate to DoubleLine Capital equal to that of the Target Fund's current advisory
 fee at all asset levels. The Acquiring Fund will pay American Beacon a management fee at the annual rate of 0.10%
 on the assets under management of the Target Fund on the Closing Date of the Reorganization, 0.10% on the next
 $50 million thereafter, and 0.15% on assets thereafter, for such time as DoubleLine Capital serves as the sub-advisor
 to the Acquiring Fund. The Acquiring Fund will pay DoubleLine Capital a sub-advisory fee rate of 0.40% on the
 assets under management of the Target Fund on the Closing Date of the Reorganization, 0.40% on the next $50 million,
 and 0.35% on assets thereafter.

• If,
 at any future date,  DoubleLine Capital were no longer to serve as sub-advisor to the Acquiring Fund, American Beacon's
 standard fee schedule would be implemented, pursuant to which the Acquiring Fund would pay American Beacon
 a management fee rate at the annual rate of 0.35% on the first $5 billion of the Acquiring Fund's average daily net
 assets, 0.325% on the next $5 billion, 0.30% on the next $10 billion, and 0.275% on assets exceeding $20 billion. However,
 if another sub-advisor were hired for the Acquiring Fund and that change would result in an increase in the total
 management and advisory fees payable by the Acquiring Fund, pursuant to the Acquiring Trust's multi-manager order
 that change would require shareholder approval.

• The
 Target Fund's  N Class and I Class shares do not, and the Acquiring Fund's Y Class and Investor Class shares will not, assess a sales charge.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• A
 fee waiver and expense reimbursement agreement (a "fee waiver agreement") is in effect through February 6, 2028, or,
 if longer, two years following the Closing Date. Under the fee waiver agreement, American Beacon has contractually agreed
 to waive fees and/or reimburse expenses of the Acquiring Fund's  Y Class and Investor Class shares through the date
 set forth above,  to the extent that the Total Expense Ratio exceeds 0.59% for the Y Class and 0.84% for the Investor
 Class (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees,
 expenses associated with securities sold short, litigation, and other extraordinary expenses). The Manager will itself
 waive fees and/or reimburse expenses of the Acquiring Fund to maintain the contractual expense ratio caps for each
 applicable class of shares or make arrangements with other service providers to do so. The Manager can be reimbursed
 by the Acquiring Fund for any contractual 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
 Total Expense Ratio of a class to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement
 or the time of the recoupment. After the expiration of the current fee waiver agreement, if American
 Beacon does not continue to reduce and/or reimburse expenses of the Acquiring Fund's Y Class and Investor Class
 shares, the Total Expense Ratio of the Acquiring Fund's Y Class and Investor Class shares could exceed the limits set
 forth in the current fee waiver agreement. If this occurs, the expenses borne by shareholders of the Acquiring Fund's
 Y Class and Investor Class shares would increase. American Beacon currently intends to recommend to the Acquiring
 Trust Board the continuation of the fee waiver agreement with the same or substantially similar limits for the Acquiring
 Fund for the foreseeable future.

**<u>Shares of the Acquiring Fund</u>**

• Shareholders
 of Class I Shares of the Target Fund will receive  Y Class shares of the Acquiring Fund and shareholders of Class
 N Shares of the Target Fund will receive Investor Class shares of the Acquiring Fund in connection with the proposed
 Reorganization. At the time of the Reorganization, shareholders of the Target Fund will become shareholders of
 the Acquiring Fund, by receiving shares of the class of the Acquiring Fund in proportion to the shares of the Target Fund
 that the shareholder held immediately prior to the Reorganization. Shareholders will not pay any sales charges in connection
 with the proposed Reorganization. Please see "Comparative Fee and Expense Tables," "Additional Information
 about the Reorganizations" and "Additional Information about the Funds" below for more information.

• The
 Acquiring Fund is newly organized and has no assets, operating history or performance information of its own as of
 the date of this Proxy Statement. The Acquiring Fund has been created as a shell series of Acquiring Trust for the
 purposes of acquiring the Target Fund's assets and assuming the Target Fund's liabilities and continuing its business investment
 operations and will not conduct any investment operations until after the Closing Date. If shareholders of the
 Target Fund approve the Reorganization, the Target Fund will be the accounting and performance survivor, and the Acquiring
 Fund will assume and publish the operating history and performance record of the Target Fund.

• The
 Funds have similar, but not identical, distribution and purchase procedures, exchange rights and redemption procedures.
 For the Target Fund, Class I shares have a minimum initial investment amount of $100,000 for regular accounts
 of $5,000 for IRA/HSA accounts and the Class N shares have a $2,000 minimum initial investment for regular accounts
 or $500 for IRA/HSA accounts, with a $100 minimum subsequent investment for both Class I and Class N shares.
 For the Acquiring Fund, the Y Class shares have a minimum initial investment amount of $100,000 and the Investor
 Class shares have a minimum initial investment amount of $2,500. These minimum investment requirements will
 be waived for all Target Fund shareholders in connection with the Reorganization, and Target Fund shareholders will
 be able to continue to purchase Y Class or Investor Class shares of the Acquiring Fund without meeting the Acquiring Fund's
 minimum initial investment amounts. The Funds' distribution and purchase procedures, exchange rights and redemption
 procedures are discussed further in "Additional Information About the Reorganizations—Comparison of Distribution
 and Purchase, Redemption and Exchange Procedures" and in Appendix C below.

**<u>Costs and Tax Consequences of the Reorganization</u>**

• The
 Reorganization is expected to be a tax-free reorganization under section 368(a) of the Internal Revenue Code of 1986,
 as amended (the "Code"). American Beacon expects that neither the Target Fund nor its shareholders will recognize
 any gain or loss for federal income tax purposes as a direct result of the Reorganization.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• American
 Beacon will bear the direct costs and expenses related to the proposed Reorganization, including the following:
 (1) costs, including legal and accounting fees, associated with preparing, reviewing, and filing the Agreement
 and Plan of Reorganization and Termination and Target Fund's proxy materials, (2) expenses incurred in connection
 with printing and mailing Target Fund's proxy materials and the solicitation of proxies for the special meeting
 of Target Fund Shareholders, (3) transfer agent and custodian conversion costs, (4) costs of preparing and filing
 the Target Fund's prospectus supplement, (5) costs of preparing and filing the Acquiring Fund's registration statement,
 and (6) costs associated with any meeting of the Target Trust Board or Acquiring Trust Board. For the other direct
 costs of the Reorganization,  DoubleLine Capital and American Beacon will each bear their own costs (e.g., legal fees
 for their own business interests).

• It
is not anticipated that portfolio holdings of the Target Fund will be  repositioned in connection with the proposed Reorganization.
However, the Target Fund and the Acquiring Fund will bear, as applicable, the costs of (i) buying and selling portfolio securities necessary
to effect the Reorganization in instances where the securities may not be transferred in-kind; and (ii) transfer or stamp duties, such
as those typically imposed in certain non-U.S. markets in connection with the transfer of portfolio securities to the Acquiring Fund.
Such costs, if any, are not expected to be material for the Acquiring Fund and would be subject to the fee waiver agreement. Therefore,
it is likely that such costs ultimately would be borne by American Beacon.

• The
 Target Fund and the Acquiring Fund will not bear any of the direct costs and expenses of the proposed Reorganization
 unless the payment of such expenses by another party would result in the Fund's disqualification as a "regulated
 investment company" under the Code or would prevent the proposed Reorganization from qualifying as a tax-free
 reorganization.

• While
 no indirect costs (e.g., additional auditor's fee structuring from testing of and review of disclosures in the annual report
 pertaining to a Reorganization) are associated with the Reorganization are anticipated, it is anticipated that any such
 indirect costs, would be borne by the Acquiring Fund. Such costs, if any, are not expected to be material for the Acquiring
 Fund and would be subject to the fee waiver agreement. Therefore, it is likely that such costs ultimately would
 be borne by American Beacon. Notwithstanding the foregoing, indirect costs shall be paid by the Fund directly incurring them if and to the extent that the payment thereof by another person would result in that Fund's disqualification as a "regulated investment company" under the Code or would prevent the proposed Reorganization from qualifying as a tax-free reorganization.

• While
 the Reorganization is expected to be tax-free for federal income tax purposes, you may recognize a gain for federal
 income tax purposes (unless you hold your shares through a tax-advantaged arrangement, such as a 401(k) plan or
 individual retirement account) as a result of the distribution of net capital gains, if any, realized by the Target Fund in connection
 with any sale of securities as described above.

**<u>Alternatives to the Reorganization</u>**

• If
 the Target Fund is not reorganized with and into the Acquiring Fund, the Target Trust Board may take such further action
 as they may deem to be in the best interests of the Target Fund and its shareholders.

• The
 proposed Reorganizations are not contingent upon one another. Accordingly, if you approve the Reorganization Plan
 with respect to your Target Fund, the Reorganization for that Target Fund is expected to be completed on the applicable
 Closing Date, irrespective of the determinations of the shareholders of the other Target Fund.

**Comparative Fee and Expense Tables**

The following tables show the fees and expenses of each class of shares of the Target Fund, and the estimated pro forma fees and expenses of each class of shares of the Acquiring Fund after giving effect to the proposed Reorganization. The Acquiring Fund is newly organized and has not had any operations of its own to date. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries,** **which are not reflected in the tables and examples below.**

Expenses for each share class of the Target Fund are based on the operating expenses incurred by Class I Shares or Class N Shares for the fiscal year ended March 31, 2025. The pro forma fees and expenses of the Acquiring Fund assume that the Reorganization had been in effect for the year ended March 31, 2025.

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| | | |
|:---|:---|:---|
|  | **DoubleLine Select Income** **Fund I Class** | **American Beacon DoubleLine** **Select Income Fund Y Class** *(pro forma)* |
| **Shareholder Fees (fees paid directly from your investment)** |  |  |
| Maximum sales charge (load) imposed on purchases (as a % of offering price) |  |  |
| Maximum deferred sales charge (load) (as a % of original purchase price) |  |  |
| Maximum sales charge (load) imposed on reinvested dividends |  |  |

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| | | |
|:---|:---|:---|
| | | **American Beacon DoubleLine** **Select Income Fund Y Class** *(pro forma)* |
| <br>**Shareholder Fees (fees paid directly from your investment)** | **DoubleLine Select Income** **Fund I Class**<br>|  |
| Redemption Fee (as a percentage of amount redeemed on shares held for 90 days or less) |  |  |
| Fee for Redemption by Wire | $15 |  |
| Exchange Fee |  |  |
| Account Fee |  | $15<sup>1</sup> |
| **Annual Fund Operating Expenses (Expenses that you pay each year as a percentage** **of the value of your investment)** |  |  |
| Management Fees | 0.50% | 0.50% |
| Distribution and/or Service (12b-1) Fees |  |  |
| Other Expenses | 0.09%<sup>2</sup> | 0.11% |
| Acquired Fund Fees and Expenses | 0.01%<sup>3</sup> | 0.00% |
| **Total Annual Fund Operating Expenses** | **0.60%** | **0.61%** |
| Fee Waiver and/or expense reimbursement | 0.00% | (0.02%)<sup>4</sup> |
| **Total Annual Fund Operating Expenses after fee waiver and/or expense** **reimbursement** | **0.60%** | **0.59%** |

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1 Fee charged by the Custodian for a traditional IRA or Roth IRA invested directly.

2 Other Expenses include sub-transfer agent accounting or administrative services expenses.

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| | |
|:---|:---|
| 3 | "Acquired Fund Fees and Expenses" are expenses indirectly incurred by the Target Fund as a result of its investments in one or more underlying funds, including exchange-traded funds ("ETFs") and money market funds. Because these costs are indirect, the Total Annual Fund Operating Expenses in this fee table will not correlate to the expense ratio in the Target Fund's financial statements, since financial statements only include direct costs of the Target Fund and not the indirect costs of investing in the underlying funds. |

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| | |
|:---|:---|
| 4 | American Beacon Advisors, Inc. (the "Manager") has contractually agreed to waive fees and/or reimburse expenses of the Acquiring Fund's Y Class shares through February 6, 2028, or, if longer, two years following the Closing Date, to the extent that Total Annual Fund Operating Expenses exceed 0.59% for the Y Class (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses). The contractual expense reimbursement can be changed or terminated only in the discretion and with the approval of a majority of the Acquiring Fund's Board of Trustees ("Board"). The Manager will itself waive fees and/or reimburse expenses of the Acquiring Fund to maintain the contractual expense ratio caps for each applicable class of shares or make arrangements with other service providers to do so. The Manager can be reimbursed by the Acquiring Fund for any contractual 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 Total Annual Fund Operating Expenses of a class to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or the time of the recoupment. |

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| | | |
|:---|:---|:---|
|  | **DoubleLine Select Income** **Fund N Class** | **American Beacon DoubleLine** **Select Income Fund Investor** **Class** *(pro forma)* |
| **Shareholder Fees (fees paid directly from your investment)** |  |  |
| Maximum sales charge (load) imposed on purchases (as a % of offering price) |  |  |
| Maximum deferred sales charge (load) (as a % of original purchase price or redemption proceeds, whichever is lower) |  |  |
| Maximum sales charge (load) imposed on reinvested dividends |  |  |
| Redemption Fee (as a percentage of amount redeemed on shares held for 90 days or less) |  |  |
| Fee for Redemption by Wire | $15 |  |
| Exchange Fee |  |  |
| Account Fee |  | $15<sup>1</sup> |
| **Annual Fund Operating Expenses (Expenses that you pay each year as a percentage of the value** **of your investment)** |  |  |
| Management Fees | 0.50% | 0.50% |
| Distribution and/or Service (12b-1) Fees | 0.25% |  |
| Other Expenses | 0.09%<sup>2</sup> | 0.38% |
| Acquired Fund Fees and Expenses | 0.01%<sup>3</sup> | 0.00% |
| **Total Annual Fund Operating Expenses** | **0.85%** | **0.88%** |
| Fee Waiver and/or expense reimbursement | 0.00% | (0.04%)<sup>4</sup> |
| **Total Annual Fund Operating Expenses after fee waiver and/or expense** **reimbursement** | **0.85%** | **0.84%** |

---

1 Fee charged by the Custodian for a traditional IRA or Roth IRA invested directly.

2 Other Expenses include sub-transfer agent accounting or administrative services expenses.

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| | |
|:---|:---|
| 3 | "Acquired Fund Fees and Expenses" are expenses indirectly incurred by the Target Fund as a result of its investments in one or more underlying funds, including exchange-traded funds ("ETFs") and money market funds. Because these costs are indirect, the Total Annual Fund Operating Expenses in this fee table will not correlate to the expense ratio in the Target Fund's financial statements, since financial statements only include direct costs of the Target Fund and not the indirect costs of investing in the underlying funds. |

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| | |
|:---|:---|
| 4 | American Beacon Advisors, Inc. (the "Manager") has contractually agreed to waive fees and/or reimburse expenses of the Acquiring Fund's Investor Class shares through February 6, 2028, or, if longer, two years following the Closing Date, to the extent that Total Annual Fund Operating Expenses exceed 0.84% for the Investor Class (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses). The contractual expense reimbursement can be changed or terminated only in the discretion and with the approval of a majority of the Acquiring Fund's Board of Trustees ("Board"). The Manager will itself waive fees and/or reimburse expenses of the Acquiring Fund to maintain the contractual expense ratio caps for each applicable class of shares or make arrangements with other service providers to do so. The Manager can be reimbursed by the Acquiring Fund for any contractual 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 Total Annual Fund Operating Expenses of a class to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or the time of the recoupment. |

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**Example of Fund Expenses**

This example is intended to help you compare the costs of investing in the Funds with the cost of investing in other mutual funds. The example assumes that:

• You
 invest $10,000 in a Fund for the time periods indicated and then redeem all of your shares at the end of those periods;

• Your
 investment has a 5% return each year;

• Each
 Fund's operating expenses remain the same; and

• The
 applicable contractual fee waiver/expense reimbursement agreement remains in place for the term of the agreement.

Although your actual costs may be higher or lower, based on these assumptions, whether you redeem or hold your shares, your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
|  **Share Class** | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| DoubleLine Select Income Fund | DoubleLine Select Income Fund | DoubleLine Select Income Fund | DoubleLine Select Income Fund | DoubleLine Select Income Fund |
| Class I shares | $61 | $192 | $335 | $750 |
| Class N shares | $87 | $271 | $471 | $1049 |
| *Pro forma American Beacon DoubleLine Select Income Fund* (assuming the proposed Reorganization is approved) | *Pro forma American Beacon DoubleLine Select Income Fund* (assuming the proposed Reorganization is approved) | *Pro forma American Beacon DoubleLine Select Income Fund* (assuming the proposed Reorganization is approved) | *Pro forma American Beacon DoubleLine Select Income Fund* (assuming the proposed Reorganization is approved) | *Pro forma American Beacon DoubleLine Select Income Fund* (assuming the proposed Reorganization is approved) |
| Y Class | $61 | $197 | $344 | $772 |
| Investor Class | $87 | $280 | $489 | $1092 |

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**Fund Turnover**

Each Fund pays transaction costs, such as commissions, when it buys and sells securities (or "**turns over**" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the fiscal year ended March 31, 2025, the portfolio turnover rate for the Target Fund was 45% of the average value of its portfolio.The Acquiring Fund has not yet commenced operations and, therefore, does not have a portfolio turnover rate to report.

**Comparison of Investment Objectives, Policies, Strategies, Advisers and Portfolio Managers**

The Target Fund and the Acquiring Fund have identical investment objectives and substantially similar principal investment strategies and policies/ restrictions. Each Fund's investment objective is to seek long-term total return while striving to generate current income. Because any investment involves risk, there can be no assurance that either Fund's investment objective will be achieved. The Funds' investment objectives are "**non-fundamental,**" which means that they can be changed by a Fund's Board of Trustees without the approval of Fund shareholders.

Prior to October 28, 2025 (the "**Effective Date**"), the Target Fund was known as the DoubleLine Infrastructure Income Fund, and had a policy to invest at least 80% of its net assets, (plus the amount of any borrowings for investment purposes) in "Infrastructure Investments." In addition, prior to the Effective Date, the Target Fund's principal investment strategies did not specifically state that, consistent with the Target Fund's ability to invest in a variety of asset-backed securities, the Target Fund may invest in asset-backed securities collateralized by consumer loans. However, effective as of the Effective Date: (i) the Target Fund's name changed to the DoubleLine Select Income Fund; (ii) the Target Fund rescinded its 80% policy, and instead adopted a policy to invest at least 50% of its net assets (plus the amount of any borrowings for investment purposes) in "Infrastructure Investments," and (iii) the Target Fund revised its principal investment strategies to clarify that the Target Fund may invest in asset-backed securities collateralized by consumer loans. Each of the changes is consistent with the Acquiring Fund's principal investment strategies. Accordingly, the principal investment strategies of the Target Fund below, and the comparison to the Acquiring Fund, reflect the changes that became effective on the Effective Date. Under normal circumstances, effective October 28, 2025, the Target Fund invests, and the Acquiring Fund will invest, at least 50% of its net assets (plus the amount of any borrowings for investment purposes) in "**Infrastructure** **Investments**." Each Fund considers Infrastructure Investments to include any assets or projects that support the operation, function, growth or development of a community or economy. Each Fund may invest without limit in Infrastructure Investments in the United

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States or in foreign countries, including emerging market countries. However, each Fund generally seeks to invest principally in instruments denominated in U.S. dollars. Each Fund may invest in debt obligations, income-producing instruments and infrastructure-related investments of any kind, including, without limitation, (i) project bonds; (ii) corporate obligations; (iii) loans; (iv) mortgage-backed securities; (v) asset-backed securities of any kind (including securities collateralized by installment loan contracts and/or leases of various types of real and personal property, such as aircraft and cellular towers, and consumer loans); (vi) foreign corporate securities, including emerging market securities; (vii) enhanced equipment trust certificates and equipment trust certificates; (viii) debt obligations issued or guaranteed by governments or governmental agencies; (ix) credit-linked notes; (x) municipal bonds; (xi) pass-through notes; (xii) perpetual maturity bonds; and (xiii) other instruments bearing fixed, floating, or variable interest rates of any maturity. Loans include, without limitation, secured and unsecured senior loans, term loan Bs, mezzanine, second lien, and other subordinated loans, loan participations and assignments, and other fixed and floating rate loans. Each Fund may use derivatives transactions for any purpose, including to create efficient investment exposure, create investment leverage, hedge against portfolio exposures, create indirect long or short positions as a substitute for a cash investment, to gain indirect long or short exposures to interest rates, issuers, or currencies, or to manage the Fund's duration or adjust the Fund's exposure to changes in market interest rates.

The Acquiring Fund discloses that it may invest in "**covenant-lite**" obligations, based on the types of lender protections and borrower obligations in the loan agreements, and that it may invest in securities that are restricted as to resale, whereas the Target Fund does not. However, the Target Fund does refer to covenant-lite loans in its principal risks. Both the Target Fund and the Acquiring Fund may invest in other investment companies, including open-end and closed-end investment companies and exchange-traded funds, and investment companies managed by the respective adviser, although the Acquiring Fund additionally discloses that it may invest in a government money market fund advised by the Manager.

Additional information regarding the investment objective and principal investment strategies of each Fund is set forth below. In addition, additional information regarding the investments in which the Acquiring Funds will invest is included in Appendix C under the heading "**Additional Information About the Acquiring Fund**."

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| | |
|:---|:---|
| **Target Fund** | **Acquiring Fund** |
|  DoubleLine Select Income Fund | &nbsp;&nbsp; American Beacon DoubleLine Select Income Fund |
|  **Investment Objective** |  |
| The Fund's investment objective is to seek long-term total return while striving to generate current income.<br> The Fund's investment objective is non-fundamental, which means the Fund may change its investment objective without shareholder approval or prior notice. | &nbsp;&nbsp; The investment objective of the Fund is to seek long-term total return while striving to generate current income.<br> The Fund's investment objective is "non-fundamental," which means that it may be changed by the Fund's Board without the approval of Fund shareholders. |
|  **Principal Investment Strategies** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Under normal market conditions, the Fund intends to invest at least 50% of its net assets (plus the amount of borrowings for investment purposes) in "Infrastructure Investments." Infrastructure Investments include any assets or projects that support the operation, function, growth or development of a community or economy. The Infrastructure Investments in which the Fund may invest include, without limitation, fixed or floating-rate debt instruments, loans or other income-producing instruments issued:<br> &nbsp;&nbsp;&nbsp;&nbsp;•  by companies or other issuers to finance (or re-finance) the ownership, development, construction, maintenance, renovation, enhancement, or operation of infrastructure assets; <br> &nbsp;&nbsp;&nbsp;&nbsp;•  by companies or other issuers that invest in, own, lease or hold infrastructure assets; and <br> &nbsp;&nbsp;&nbsp;&nbsp;•  by companies or other issuers that operate infrastructure assets or provide services, products or raw materials related to the development, construction, maintenance, renovation, enhancement or operation of infrastructure assets. The Fund may hold instruments issued by a wide range of entities including, among others, operating companies, holding companies, special purpose vehicles, including vehicles created to hold or finance infrastructure assets, municipal issuers, and governments and governmental agencies, authorities or instrumentalities. The infrastructure assets to which the Fund may have exposure through its investments include, without limitation, assets related to:<br> &nbsp;&nbsp;&nbsp;&nbsp;•  transportation (e.g., airports, metro systems, subways, railroads, ports, toll roads);<br> &nbsp;&nbsp;&nbsp;&nbsp;•  transportation equipment (e.g., shipping, aircraft, railcars, containers);<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Under normal circumstances, the Fund intends to invest at least 50% of its net assets (plus the amount of borrowings for investment purposes) in "Infrastructure Investments." The Fund considers Infrastructure Investments to include any assets or projects that support the operation, function, growth or development of a community or economy.<br> The Infrastructure Investments in which the Fund may invest include, without limitation, fixed or floating-rate debt instruments, loans or other income-producing instruments issued:<br> &nbsp;&nbsp;&nbsp;&nbsp;•  by companies or other issuers to finance (or re-finance) the ownership, development, construction, maintenance, renovation, enhancement, or operation of infrastructure assets;<br> &nbsp;&nbsp;&nbsp;&nbsp;•  by companies or other issuers that invest in, own, lease or hold infrastructure assets; and<br> &nbsp;&nbsp;&nbsp;&nbsp;•  by companies or other issuers that operate infrastructure assets or provide services, products or raw materials related to the development, construction, maintenance, renovation, enhancement or operation of infrastructure assets. <br> The Fund may hold instruments issued by a wide range of entities including, among others, operating companies, holding companies, special purpose vehicles, including vehicles created to hold or finance infrastructure assets, municipal issuers, and governments and governmental agencies, authorities or instrumentalities. The infrastructure assets to which the Fund may have exposure through its investments include, without limitation, assets related to: <br> &nbsp;&nbsp;&nbsp;&nbsp;•  transportation (e.g., airports, metro systems, subways, railroads, ports, toll roads); |

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| | |
|:---|:---|
| **Target Fund** | **Acquiring Fund** |
|  DoubleLine Select Income Fund | &nbsp;&nbsp; American Beacon DoubleLine Select Income Fund  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;•  electric utilities and power (e.g., power generation, transmission and distribution);<br> &nbsp;&nbsp;&nbsp;&nbsp;•  energy (e.g., exploration and production, pipeline, storage, refining and distribution of energy), including renewable energies (e.g., wind, solar, hydro, geothermal);<br> &nbsp;&nbsp;&nbsp;&nbsp;•  communication networks and equipment (e.g., cell towers, fibers, data centers);<br> &nbsp;&nbsp;&nbsp;&nbsp;•  water and sewage treatment; <br> &nbsp;&nbsp;&nbsp;&nbsp;•  social infrastructure (e.g., health care facilities, government buildings and other public service facilities); and<br> &nbsp;&nbsp;&nbsp;&nbsp;•  metals, mining, and other resources and services related to infrastructure assets (e.g., cement, chemical companies).<br> The Fund may invest without limit in Infrastructure Investments in the United States or in foreign countries, including emerging market countries. However, the Fund generally seeks to invest principally in instruments denominated in U.S. dollars.<br> Although, under normal circumstances, the Fund intends to invest more than 50% of its net assets in investment grade investments (i.e., those rated above Ba1 by Moody's Investors Service, Inc. or above BB+ by S&P Global Ratings, Fitch Ratings, Inc., Kroll Bond Rating Agency or the equivalent by any other nationally recognized rating organization) and unrated instruments considered by DoubleLine Capital LP (the "Adviser" or "DoubleLine Capital") to be of comparable credit quality, the Fund may purchase investments of any credit quality, including investments that are rated below investment grade or unrated instruments considered by the Adviser to be of comparable credit quality. Instruments rated below investment grade and unrated instruments of comparable quality, are high yield, high risk bonds, commonly known as "junk bonds." Such "junk bonds" also may be considered to possess some speculative characteristics.<br> Generally, lower-rated debt securities offer the potential for a higher yield than higher rated debt securities of similar maturity but are subject to greater risk of loss of principal and interest than higher rated securities of similar maturity.<br> The Fund may invest without limit in debt obligations, loans and other income-producing instruments where the obligation to repay principal and pay interest or otherwise make payments to the Fund is secured by underlying infrastructure asset(s) (e.g., a power generating facility, aircraft, railcars, and/ or containers) or secured solely by an equity ownership stake in a particular asset or project. Alternatively, the Fund may invest in income-producing instruments where the obligation to repay principal and pay interest is unsecured and backed only by the creditworthiness of the issuer.<br> The Fund may invest in debt obligations, income-producing instruments and infrastructure-related investments of any kind, including, without limitation, (i) project bonds; (ii) corporate obligations; (iii) loans; (iv) mortgage-backed securities; (v) asset-backed securities of any kind (including securities collateralized by installment loan contracts and/or leases of various types of real and personal property such as aircraft and cellular towers, and consumer loans); (vi) foreign corporate securities, including emerging market securities; (vii) enhanced equipment trust certificates and equipment trust certificates; (viii) debt obligations issued or guaranteed by governments or governmental agencies; (ix) credit-linked notes; (x) municipal bonds; (xi) pass-through notes; (xii) perpetual maturity bonds; and (xiii) other instruments bearing fixed, floating, or variable interest rates of any maturity. The Fund may invest in any level of the capital structure of an issuer of asset-backed securities, including the equity or "first loss" tranche. Loans include, without limitation, secured and unsecured senior loans, term loan Bs, mezzanine, second lien, and other subordinated loans, loan participations and assignments, and other fixed and floating rate loans.<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;•  transportation equipment (e.g., shipping, aircraft, railcars, containers); electric utilities and power (e.g., power generation, transmission and distribution);<br> &nbsp;&nbsp;&nbsp;&nbsp;•  energy (e.g., exploration and production, pipeline, storage, refining and distribution of energy), including renewable energies (e.g., wind, solar, hydro, geothermal);<br> &nbsp;&nbsp;&nbsp;&nbsp;•  communication networks and equipment (e.g., cell towers, fibers, data centers);<br> &nbsp;&nbsp;&nbsp;&nbsp;•  water and sewage treatment;<br> &nbsp;&nbsp;&nbsp;&nbsp;•  social infrastructure (e.g., health care facilities, government buildings and other public service facilities); and<br> &nbsp;&nbsp;&nbsp;&nbsp;•  metals, mining, and other resources and services related to infrastructure assets (e.g., cement, chemical companies). <br> The Fund may invest without limit in Infrastructure Investments in the United States or in foreign countries, including emerging market countries. However, the Fund generally seeks to invest principally in instruments denominated in U.S. dollars.<br> Although, under normal circumstances, the Fund intends to invest more than 50% of its net assets in investment grade investments (i.e., those rated Baa3 or better by Moody's Investors Service, Inc. or BBB- or better by S&P Global Ratings, Fitch Ratings, Inc., Kroll Bond Rating Agency or the equivalent by any other nationally recognized rating organization) and unrated instruments considered by DoubleLine Capital LP (the "sub-advisor" or "DoubleLine Capital") to be of comparable credit quality, the Fund may purchase investments of any credit quality, including investments that are rated below investment grade or unrated instruments considered by the sub-advisor to be of comparable credit quality. Instruments rated below investment grade and unrated instruments of comparable quality are high yield, high risk bonds, commonly known as "junk bonds." Such "junk bonds" also may be considered to possess some speculative characteristics. Generally, lower-rated debt securities offer the potential for a higher yield than higher rated debt securities of similar maturity but are subject to greater risk of loss of principal and interest than higher rated securities of similar maturity. <br> The Fund may invest without limit in debt obligations, loans and other income-producing instruments where the obligation to repay principal and pay interest or otherwise make payments to the Fund is secured by underlying infrastructure asset(s) (e.g., a power generating facility, aircraft, railcars, and/ or containers) or secured solely by an equity ownership stake in a particular asset or project. Alternatively, the Fund may invest in income-producing instruments where the obligation to repay principal and pay interest is unsecured and backed only by the creditworthiness of the issuer.<br> The Fund may invest in debt obligations, income-producing instruments and infrastructure-related investments of any kind, including, without limitation, (i) project bonds; (ii) corporate obligations; (iii) loans (including "covenant-lite" obligations); (iv) mortgage-backed securities; (v) asset-backed securities of any kind (including securities collateralized by installment loan contracts and/or leases of various types of real and personal property, such as aircraft and cellular towers, and consumer loans); (vi) foreign corporate securities, including emerging market securities; (vii) enhanced equipment trust certificates and equipment trust certificates; (viii) debt obligations issued or guaranteed by governments or governmental agencies; (ix) credit-linked notes; (x) municipal bonds; (xi) pass-through notes; (xii) perpetual maturity bonds; and (xiii) other instruments bearing fixed, floating, or variable interest rates of any maturity. The Fund may invest in any level of the capital structure of an issuer of asset-backed securities, including the equity or "first loss" tranche. Loans include, without limitation, secured and unsecured senior loans, term loan Bs, mezzanine, second lien, and other subordinated loans, loan participations and assignments, and other fixed and floating rate loans. The Fund may invest in securities that are restricted as to their resale or that otherwise have limited liquidity.<br> The Fund may use derivatives transactions for any purpose, including to create efficient investment exposure, create investment leverage, hedge against portfolio exposures, create indirect long or short positions as a  |

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| | |
|:---|:---|
| **Target Fund** | **Acquiring Fund** |
|  DoubleLine Select Income Fund | &nbsp;&nbsp; American Beacon DoubleLine Select Income Fund  |
| The Fund may use derivatives transactions for any purpose, including to create efficient investment exposure, create investment leverage, hedge against portfolio exposures, create indirect long or short positions as a substitute for a cash investment, or to manage the Fund's duration or adjust the Fund's exposure to changes in market interest rates. The Fund will incur costs in implementing derivatives strategies, and there can be no assurance that the Fund will engage in derivatives strategies or that any such strategy will be successful.<br> The Fund may pursue its investment objective and obtain exposures to some or all of the asset classes described above by investing in other investment companies, including, for example, other open-end or closed-end investment companies, and ETFs, including investment companies sponsored or managed by the Adviser or its related parties. The amount of the Fund's investment in certain investment companies may be limited by law or by tax considerations.<br> The Adviser monitors the duration of the Fund's portfolio securities to seek to assess and, in its discretion, adjust the Fund's exposure to interest rate risk. The Adviser intends, under normal market conditions, to construct an investment portfolio with a dollar-weighted average effective duration of no less than two years and no more than ten years. Duration is a measure of the expected life of a fixed income instrument that is used to determine the sensitivity of a security's price to changes in interest rates. All other things remaining equal, for each one percentage point increase in interest rates, the value of a portfolio of fixed income securities would generally be expected to decline by one percent for every year of the portfolio's average duration above zero. For example, the value of a portfolio of fixed income securities with an average duration of three years would generally be expected to decline by approximately 3% if interest rates rose by one percentage point. Effective duration is a measure of the Fund's portfolio duration adjusted for the anticipated effect of interest rate changes on bond and loan prepayment rates as determined by the Adviser. The effective duration of the Fund's investment portfolio may vary materially from its target range, from time to time, and there is no assurance that the effective duration of the Fund's investment portfolio will always be within its target range. | &nbsp;&nbsp; substitute for a cash investment, or to manage the Fund's duration or adjust the Fund's exposure to changes in market interest rates. The Fund will incur costs in implementing derivatives strategies, and there can be no assurance that the Fund will engage in derivatives strategies or that any such strategy will be successful. <br> The Fund may pursue its investment objective and obtain exposures to some or all of the asset classes described above by investing in other investment companies, including, for example, other open-end or closed-end investment companies, and exchange-traded funds ("ETFs"), including investment companies sponsored or managed by the Manager, the sub-advisor or their related parties. The Fund may invest cash balances in a government money market fund advised by the Manager, with respect to which the Manager receives a management fee. The amount of the Fund's investment in certain investment companies may be limited by law or by tax considerations.<br> The sub-advisor monitors the duration of the Fund's portfolio securities to seek to assess and, in its discretion, adjust the Fund's exposure to interest rate risk. The sub-advisor intends, under normal circumstances, to construct an investment portfolio with a dollar-weighted average effective duration of no less than two years and no more than ten years. Duration is a measure of the expected life of a fixed income instrument that is used to determine the sensitivity of a security's price to changes in interest rates. All other things remaining equal, for each one percentage point increase in interest rates, the value of a portfolio of fixed income securities would generally be expected to decline by one percent for every year of the portfolio's average duration above zero. For example, the value of a portfolio of fixed income securities with an average duration of three years would generally be expected to decline by approximately 3% if interest rates rose by one percentage point. Effective duration is a measure of the Fund's portfolio duration adjusted for the anticipated effect of interest rate changes on bond and loan prepayment rates as determined by the sub-advisor. The effective duration of the Fund's investment portfolio may vary materially from its target range, from time to time, and there is no assurance that the effective duration of the Fund's investment portfolio will always be within its target range. |

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| | |
|:---|:---|
| **Target Fund** | **Acquiring Fund** |
|  DoubleLine Select Income Fund | &nbsp;&nbsp; American Beacon DoubleLine Select Income Fund  |
|  **Temporary Defensive Policy** |  |
| When attempting to respond to adverse market, economic, political, or other conditions, the Fund may take temporary defensive positions that may be inconsistent (including materially inconsistent) with such Fund's principal investment strategies. The Adviser then may, but is not required to, temporarily use alternative strategies that are mainly designed to limit the Fund's exposure to such adverse conditions under the circumstances. In implementing these strategies, the Fund may invest primarily in, among other things, U.S. Government and agency obligations, fixed or floating rate investments, derivative instruments, cash or money market instruments (including, money market funds), or any other securities or instruments that the portfolio manager(s) considers consistent with such defensive strategies or deemed consistent with the then existing market conditions. By way of example, the Fund may hold a higher than normal proportion of its assets in cash in times of extreme market stress. The Fund may also use derivatives, such as futures contracts, interest rate swaps, and credit default swaps, as an efficient means to adjust the Fund's interest rate, credit, and other exposures in connection with taking such temporary defensive positions. During periods when the Fund has taken temporary defensive positions, the Fund may not achieve its investment objective. | &nbsp;&nbsp; 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. |
|  **Investment Adviser** |  |
| DoubleLine Capital LP | &nbsp;&nbsp; American Beacon Advisors, Inc. |
|  **Investment Sub-Advisor** |  |
| None. | &nbsp;&nbsp; DoubleLine Capital LP |
|  **Portfolio Managers** |  |
| Andrew Hsu and Damien Contes are jointly and primarily responsible for the day-to-day management of the Target Fund. Both have served as portfolio managers of the Target Fund since its inception in 2016.<br> **Andrew Hsu, CFA** joined DoubleLine Capital at its inception in 2009. He is a Portfolio Manager for the DoubleLine Total Return and ABS/Infrastructure Income strategies. Mr. Hsu is a permanent member of the Fixed Income Asset Allocation and Structured Products Committees. Prior to that, he was responsible for analysis and trading of structured products, where his focus included residential MBS and ABS transactions. Mr. Hsu's responsibilities have also included structuring and negotiating terms on new-issue transactions and forming strategic partnerships with issuing entities in order to participate in key transactions. Prior to DoubleLine Capital, he worked at TCW from 2002 to 2009, where he focused on credit analysis for structured product securities and co-managed two structured product funds centered on debt and equity investments. During that time, Mr. Hsu was actively involved with portfolio management decisions and investment analysis, including reverse engineering complex CDO/CLO structures. He holds a BS in Finance from the University of Southern California and is a CFA® charterholder.<br> **Damien Contes, CFA** joined DoubleLine Capital in 2013. He is Chairman of the Responsible Investment Advisory Committee and leads the firmwide Responsible Investment initiative and the DoubleLine Responsible Investment Team. In addition, Mr. Contes is a Portfolio Manager on the Global Infrastructure Investments team. Previously, Mr. Contes was a Corporate Analyst responsible for the coverage of transportation, oil & gas, and petrochemical sectors for the Emerging Markets Fixed Income group. Prior to DoubleLine Capital, he was a Corporate Research Analyst at ICE Canyon, where he contributed to the investment management of the firm's three types of Emerging Markets and global vehicles: hedge fund (absolute return), index products (relative value) and collateralized loan obligations (CLOs). Previous to ICE Canyon, he was a Senior Bank Debt Specialist with Canyon Capital Advisors, where he was responsible for the settlement of foreign and distressed bank debt transactions. Prior to that, he was a Senior Fund Accountant with Mellon Financial Corporation, overseeing Emerging Markets Real Estate funds and Oil & Gas Debt and Royalty funds. Mr. Contes holds a B.S. in Business Administration with a concentration in Accounting & Finance from the College of Charleston in Charleston, South Carolina. He is a CFA® charterholder. | &nbsp;&nbsp; Same. |

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**Comparison of Principal Risk Factors**

There is no assurance that the Funds will achieve their investment objectives, and you could lose part or all of your investment in the Funds. **The Funds are not designed for investors who need an assured level of current income and are intended to be a** **long-term investment. The Funds are 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 Funds.**

Although the Funds describe and organize them differently, the principal risks associated with investments in the Target Fund and the Acquiring Fund are substantially similar because the Funds have identical investment objectives and substantially similar principal investment strategies. In addition, as the Acquiring Fund and Target Fund have made different determinations regarding the principal risks, the Acquiring Fund and Target Fund each disclose certain risks that the other does not. The table below sets forth the principal risks of the Target Fund, along with the corresponding principal risks of the Acquiring Fund, as well as any principal risks applicable to one Fund, but not the other.

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| | |
|:---|:---|
|  **Target Fund** | **Acquiring Fund** |
| Active Management Risk | &nbsp;&nbsp; Asset Selection Risk<br> Securities Selection Risk |
| Asset-Backed Securities Investment Risk | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-Backed Securities Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Equipment Trust Certificates (ETCs) and Enhanced Equipment Trust Certificates (EETCs) Risk |
| Cash Position Risk | &nbsp;&nbsp; No corresponding risk. |
| Confidential Information Access Risk | &nbsp;&nbsp; Confidential Information Access Risk |
| Counterparty Risk | &nbsp;&nbsp; Counterparty Risk |
| Debt Securities Risks: | &nbsp;&nbsp; Variable and Floating Rate Securities Risk |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;•  Credit Risk | &nbsp;&nbsp; Credit Risk |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;•  Extension Risk | &nbsp;&nbsp; Prepayment and Extension Risk |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;•  Interest Rate Risk | &nbsp;&nbsp; Interest Rate Risk |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;•  Prepayment Risk | &nbsp;&nbsp; Prepayment and Extension Risk <br> Callable Securities Risk |
| Derivatives Risk | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Futures Contracts Risk<br> □<br> Interest Rate Futures Contracts Risk<br> □<br> Treasury Futures Contracts Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Structured Notes Risk |
| Emerging Market Country Risk | &nbsp;&nbsp; Emerging Markets Risk |
| Focused Investment Risk | &nbsp;&nbsp; No corresponding risk. |
| Foreign Investing Risk | &nbsp;&nbsp; Foreign Exposure Risk |
| High Yield Risk | &nbsp;&nbsp; High-Yield Securities Risk<br> Unrated Securities Risk |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Infrastructure Sector Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Transportation<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Electric Utilities and Power <br> &nbsp;&nbsp;&nbsp;&nbsp;•  Energy<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Renewable Energy<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Communication Networks and Equipment<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Public and Social Infrastructure<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Metals and Mining<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Industrial | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Infrastructure Investments Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Transportation <br> &nbsp;&nbsp;&nbsp;&nbsp;•  Electric Utilities and Power<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Energy<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Renewable Energy<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Communication Networks and Equipment<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Public and Social Infrastructure<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Metals and Mining<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Industrial |
| Investment Company and Exchange-Traded Fund Risk | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Investment Companies Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Closed-End Funds Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Exchange-Traded Funds ("ETFs") Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Government Money Market Funds Risk |
| Large Transactions Risk | &nbsp;&nbsp; Redemption Risk |
| Leveraging Risk | &nbsp;&nbsp; No corresponding risk. |
| Liquidity Risk | &nbsp;&nbsp; Liquidity Risk |
| Loan Risk | &nbsp;&nbsp; Loan Interests Risk<br> "Covenant-Lite" Obligations Risk<br> Reliance on Corporate Management and Financial Reporting Risk |

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| | |
|:---|:---|
|  | &nbsp;&nbsp; Secured, Partially Secured and Unsecured Obligation Risk |
| Market Risk | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Recent Market Events Risk |
| No corresponding risk. | &nbsp;&nbsp;Market Timing Risk |
| Mortgage-Backed Securities Risk | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage-Backed and Mortgage-Related Securities Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Mortgage Pass-Through Securities Risk |
| Municipal Bond Risk | &nbsp;&nbsp; Municipal Securities Risk |
| Operational and Information Security Risks | &nbsp;&nbsp; Cybersecurity and Operational Risk |
| Restricted Securities Risk | &nbsp;&nbsp; Restricted Securities Risk |
| Securities or Sector Selection Risk | &nbsp;&nbsp; Securities Selection Risk <br> Investment Risk <br> Issuer Risk |
| Structured Products and Structured Notes Risk | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives Risk<br> &nbsp;&nbsp;&nbsp;&nbsp;•  Structured Notes Risk<br> Collateralized Loan Obligations ("CLOs") Risk <br> Structured Products and Structured Notes Risk |
| U.S. Government Securities Risk | &nbsp;&nbsp; U.S. Government Securities and Government-Sponsored Enterprises Risk |
| Valuation Risk | &nbsp;&nbsp; Valuation Risk |
| No corresponding risk. | &nbsp;&nbsp; Debentures Risk |
| No corresponding risk. | &nbsp;&nbsp; Model and Data Risk |
| No corresponding risk. | &nbsp;&nbsp; Sovereign and Quasi Sovereign Deb Risk |
| No corresponding risk. | &nbsp;&nbsp; Supranational Risk |

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The Acquiring Fund is subject to the principal risks described below. These risks 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 the Acquiring Fund, regardless of the order in which it appears.

**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. 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. These securities may be more sensitive to changes in interest rates than other types of debt securities. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain asset-backed securities. Asset-backed securities are also subject to the risk of a 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.

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 may 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 may lengthen the expected maturity and duration of asset-backed securities, which, in turn, can make these securities more sensitive to changes in interest rates. Therefore, the prices of asset-backed securities may decrease more than prices of other fixed-income securities when interest rates rise. Rising interest rates also may increase the risk of default by borrowers. As a result, in a period of rising interest rates, a Fund may experience additional volatility and losses.

A Fund's investments in asset-backed securities are subject to risks associated with the nature of the assets and the servicing of those assets. Certain asset-backed securities may not have the benefit of a security interest in collateral comparable to that of mortgage assets, resulting in additional credit risk. If a securitization issuer defaults on its payment obligations due to losses or shortfalls on the assets held by the issuer, a sale or liquidation of the assets may not be sufficient to support payments on the securities, and a Fund may suffer losses as a result. As such, 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. There may be a limited secondary market for certain asset-backed securities, which may make it difficult for a Fund to sell or realize profits on those securities at favorable times or for favorable prices. In addition, as certain asset-backed 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 pools that include such subprime loans.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Equipment
 Trust Certificates (ETCs) and Enhanced Equipment Trust Certificates (EETCs) Risk. ETCs and EETCs are types of
 asset-backed securities that generally represent undivided fractional interests in a trust whose assets consist of a pool of equipment
 retail installment contracts or leased equipment. EETCs are similar to ETCs, except that the securities have been divided
 into two or more classes, each with different payment priorities and asset claims. ETCs and EETCs are typically issued by
 specially-created trusts established by airlines, railroads, or other transportation firms. The assets of ETCs and EETCs are used
 to purchase equipment, such as airplanes, railroad cars, or other equipment, which may in turn serve as collateral for the related
 issue of the ETCs or EETCs, and the title to such equipment is held in trust for the holders of the issue. The equipment generally
 is leased from the specially-created trust by the airline, railroad or other firm, which makes rental or lease payments to
 the specially-created trust to provide cash flow for payments to ETC and EETC holders. Holders of ETCs and EETCs must look
 to the collateral securing the certificates, typically together with a guarantee provided by the lessee firm or its parent company
 for the payment of lease obligations, in the case of default in the payment of principal and interest on the ETCs or EETCs.
 ETCs and EETCs are subject to the risk that the lessee or payee defaults on its payments, and risks related to potential declines
 in the value of the equipment that serves as collateral for the issue. ETCs and EETCs are generally regarded as obligations
 of the company that is leasing the equipment and may be shown as liabilities in its balance sheet as a capitalized lease
 in accordance with generally accepted accounting principles. The lessee company, however, does not own the equipment
 until all the certificates are redeemed and paid. In the event the company defaults under its lease, the trustee may terminate
 the lease. If another lessee is not available, then payments on the certificates would cease until another lessee is available.

**Asset Selection Risk**<br>Assets selected for the Fund may not perform to expectations. Judgments about the attractiveness, value and potential performance of a particular asset class or individual security may be incorrect, and there is no guarantee that individual securities will perform as anticipated. Additionally, asset classes tend to go through cycles of out performance and under performance in comparison to each other and to the general securities markets. This could result in the Fund's under performance compared to other funds with similar investment objectives.

**Callable Securities Risk**<br>A 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, a Fund would lose the income that would have been earned to maturity on that security, the proceeds received by a Fund may be invested in securities paying lower coupon rates or other less favorable characteristics, and a Fund may not benefit from any increase in value that might otherwise result from declining interest rates. Thus, a Fund's income could be reduced as a result of a call and this may reduce the amount of a 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 a Fund's total return. Interest-only and principal-only securities are especially sensitive to interest rate changes, which can affect not only the prices but can also change the income flows and repayment assumptions about those investments.

**Collateralized Loan Obligations** **("CLOs")** **Risk**<br>The risks of an investment in a CLO depend largely on the type of the collateral securities and the class of the instrument in which a Fund invests. A Fund typically will invest in CLOs collateralized by bank loans. Therefore, the CLOs in which a Fund invests will be subject to loan interests risk. A Fund's investments in CLOs and other similarly structured investments may expose a Fund to heightened credit risk, interest rate risk, liquidity risk, market risk and prepayment and extension risk. In addition to these risks, CLOs may carry additional risks including, but are not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the risk that the quality of the collateral may decline in value or default; (iii) the risk that a Fund may invest in CLOs that are subordinate to other classes; (iv) the risk that 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; and (v) the possibility that CLO's manager may perform poorly. CLOs may charge management and other administrative fees, which are in addition to those of a Fund. CLOs can be difficult to value and may be highly leveraged (which could make them highly volatile).

In addition, CLOs normally are privately offered and sold, and thus, are not registered under the securities laws. As a result, investments in CLOs may be characterized as illiquid securities and may have limited independent pricing transparency. A Fund's interest in CLO securities may be less liquid than the loans held by the CLO itself; thus, it may be more difficult for a Fund to dispose of CLO securities than it would be for a Fund to dispose of loans if it held such loans directly. However, an active dealer market may exist for CLOs, allowing them to qualify for the Rule 144A "safe harbor" from the registration requirements of the Securities Act for transactions in such securities with qualified institutional buyers. The cash flows from a CLO are split into two or more portions, called tranches, each with a different yield and risk/return profile. 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 CLO typically have higher ratings and lower yields than their underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CLO securities as a class.

**Confidential Information Access Risk**<br>In managing the Fund or other client assets, the Manager or Sub-Advisor may be in possession of material non-public information about the issuers of certain investments, including, without limit, loans, high-yield bonds and related investments being considered for acquisition by the Fund or held in the Fund's portfolio. For example, an issuer of privately placed loans considered by the Fund may offer to provide the Manager or Sub-Advisor with financial information and related documentation regarding the issuer that is not publicly available. Because of prohibitions on trading in securities of issuers while in possession of such information, the Fund might be unable, potentially for a substantial period of time, to enter into a transaction in a security of that issuer when it would otherwise be advantageous to do so. In such circumstances, the Fund may be disadvantaged in comparison to other investors, including with respect to the price the Fund pays or receives when it buys or sells an investment. Pursuant to applicable policies and procedures, the Manager or Sub-Advisor may, but is not required to, seek to avoid receipt of confidential information from the issuer so as to avoid possible restrictions on its ability to purchase and sell investments on behalf of the Fund. Further, the Manager's or Sub-Advisor's and the Fund's abilities to assess the desirability of proposed consents, waivers or amendments with respect to certain investments may be compromised if they are not privy to available confidential information. The Manager or Sub-Advisor may also determine to receive such confidential information in certain circumstances under its applicable policies and procedures.

**Counterparty Risk**<br>A 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

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a Fund. As a result, a Fund may not recover its investment or may only obtain a limited recovery, and any recovery may be delayed. Not all derivative transactions require a counterparty to post collateral, which may expose a Fund to greater losses in the event of a default by a counterparty.

Some of the markets in which a 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 a 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.

A Fund is also subject to the risk that an FCM would default on an obligation set forth in an agreement between a Fund and the FCM. This risk exists at and from the time that a Fund enters into derivatives transactions that are centrally cleared. In such cases, a clearing organization becomes a 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, a Fund could miss investment opportunities or otherwise hold investments it would prefer to sell, resulting in losses for a Fund.

**"Covenant-Lite" Obligations Risk**<br>Certain investments, such as loans in which a Fund may invest directly or have exposure to through its investments in structured securities, may be "covenant-lite." Covenant-lite obligations contain fewer maintenance covenants than other obligations, or no maintenance covenants at all, and may not include terms which allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached, which would allow the lender to restructure the loan or take other action intended to help mitigate losses. This may expose a Fund to greater credit risk associated with the borrower and reduce a Fund's ability to restructure a problematic loan and mitigate potential loss. As a result, a Fund's exposure to losses on such investments may be increased, especially during a downturn in the credit cycle, and a Fund may experience relatively greater difficulty or delays in enforcing its rights on its holdings of covenant-lite obligations than its holdings of loans or securities with financial maintenance covenants.

**Credit Risk**<br>A 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 the sub-advisor require accurate and detailed credit analysis of issuers and there can be no assurance that its analysis will be accurate or complete. A 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 a Fund may have an adverse impact on its price and may make it difficult for a 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 a Fund's securities, could affect a 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.

**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 a Fund, its service providers, and third-party fund distribution platforms, including the ability of shareholders to transact in a Fund's shares, 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 a 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 financial data, the inability to process Fund transactions, interference

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with a 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 a Fund or its shareholders. Market events also may occur at a pace that overloads current information technology and communication systems and processes of the funds, their service providers or other market participants, such as third-party distribution platforms, which could impact the ability of the funds to conduct operations or of shareholders to transact the Funds' shares.

The Manager, through its monitoring and oversight of Fund service providers, endeavors to determine that service providers take appropriate precautions to avoid or mitigate risks that could lead to problems discussed above. 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 a 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. A Fund cannot control the cybersecurity plans and systems of its service providers, its counterparties, third-party fund distribution platforms, or the issuers of securities in which a Fund invests. The issuers of a Fund's investments are likely to be dependent on computers for their operations and require ready access to their data and the internet to conduct their business. Thus, cybersecurity incidents could also affect issuers of a Fund's investments, 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. A 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.<br>A 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. A 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. A 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 a Fund to additional risks that it would not be subject to if it invested directly in the securities or other instruments underlying those securities. Derivatives can be highly complex and their use within a management strategy can require specialized skills. There can be no assurance that any strategy used will succeed. If the sub-advisor incorrectly forecasts stock market values, or the direction of interest rates or currency exchange rates in utilizing a specific derivatives strategy for a Fund, a Fund could lose money. In addition, leverage embedded in a derivative instrument can expose a Fund to greater risk and increase its costs. Gains or losses in the value of a derivative instrument may be magnified and be much greater than the derivative's original cost (generally the initial margin deposit). There may also be material and prolonged deviations between the theoretical value and realizable value of a derivative. As a result, a 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 a Fund has allocated its assets. Derivatives may at times be illiquid and may be more volatile than other types of investments. A Fund may not be able to close out or sell a derivative position at a particular time or at an anticipated price. Certain derivatives may also be difficult to value, and valuation may be more difficult in times of market turmoil.

Derivative investments can increase portfolio turnover and transaction costs. Derivatives also are subject to counterparty risk and credit risk. As a result, a Fund may not recover its investment or may only obtain a limited recovery, and any recovery may be delayed. Not all derivative transactions require a counterparty to post collateral, which may expose a Fund to greater losses in the event of a default by a counterparty. Derivatives transactions requiring a Fund to post collateral may expose a Fund to greater losses in the event of a default by a counterparty. Certain derivatives require a Fund to post margin to secure its future obligation; if a Fund has insufficient cash, it may have to sell investments from its portfolio to meet daily variation margin requirements at a time when it may be disadvantageous to do so. A Fund's use of derivatives also may create financial leverage, which may result in losses that exceed the amount originally invested and accelerate the rate of losses. 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. A Fund may buy or sell derivatives not traded on organized exchanges or enter into transactions that are not cleared through clearing organizations. These types of transactions may be subject to heightened counterparty, liquidity and valuation risks. Suitable derivatives may not be available in all circumstances, and there can be

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no assurance that a Fund will use derivatives to reduce exposure to other risks when that might have been beneficial. Because the markets for certain derivative instruments (including markets located in foreign countries) are relatively new and still developing, suitable derivatives transactions may not be available in all circumstances for risk management or other purposes. Upon the expiration of a particular contract, the sub-advisor may wish to retain a Fund's position in the derivative instrument by entering into a similar contract, but may be unable to do so if the counterparty to the original contract is unwilling to enter into the new contract and no other suitable counterparty can be found. Although a Fund may attempt to hedge against certain risks, the hedging instruments may not perform as expected and could produce losses. Hedging instruments may also reduce or eliminate gains that may otherwise have been available had a Fund not used the hedging instruments. A Fund may not hedge certain risks in particular situations, even if suitable instruments are available.

A Fund's ability to use derivatives may also be limited by certain regulatory and tax considerations. For example, the CFTC and the designated contract markets have established position limits for certain futures and options contracts, which may restrict the ability of a Fund, or the Manager or sub-advisor entering trades on a Fund's behalf, to make certain trading decisions. Rule 18f-4 places limits on the use of derivatives by registered investment companies, such as a 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 derivatives markets and changes in the regulation of funds using derivative instruments could limit a Fund's ability to pursue its investment strategies. New regulation may make derivatives more costly, may limit their availability, may disrupt markets, or may otherwise adversely affect their value or performance. Recent rule changes 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. A Fund may be subject to the risks associated with investments in derivatives, including but not limited to the following:

• Futures
 Contracts Risk. Futures
 contracts 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 a Fund
 to additional risks, such as liquidity risk and counterparty risk, that it would not be subject to if it
 invested directly in the instruments 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 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 a  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 a
  Fund has previously bought or sold and
 this may result in the inability to close a futures contract when desired. When a
  Fund purchases or sells a futures contract, it
 is subject to daily variation margin calls that could be substantial. If a
 Fund has insufficient cash to meet daily variation margin
 requirements, it might need to sell securities at a time when such sales are disadvantageous. A
 Fund may invest in the following
 types of futures contracts:

□ *Interest Rate Futures Contracts Risk.* Interest rate futures contracts expose a
 Fund to price fluctuations resulting from changes
 in interest rates. A
 Fund could suffer a loss if interest rates rise after a
 Fund has purchased an interest rate futures contract
 or fall after a Fund
 has sold an interest rate futures contract.

□ *Treasury Futures Contracts Risk.* Treasury futures contracts expose a
 Fund to price fluctuations resulting from changes
 in interest rates. Treasury futures contracts expose a
 Fund to potential losses if interest rates do not move as expected.

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• Structured
 Notes Risk. Structured
 notes are derivative debt instruments with principal and/or interest payments linked to
 the value of a commodity, a foreign currency, an index of securities, an interest rate, or other financial indicators ("reference
 instruments"). The payments on a structured note may vary based on changes in one or more specified reference instruments,
 such as a floating interest rate compared to a fixed interest rate, the exchange rates between two currencies, one or
 more securities or a securities or commodities index. If the underlying investment or index does not perform as anticipated, the
 structured note might pay less interest than the stated coupon payment or repay less principal upon maturity. The movement
 of such factors may cause significant price fluctuations. A structured note may be positively or negatively indexed. For
 example, its principal amount and/or interest rate may increase or decrease if the value of the reference instrument increases,
 depending upon the terms of the instrument. Structured notes can have risks of both fixed-income securities and derivatives
 transactions. Structured notes are subject to interest rate risk, market risk, liquidity risk and counterparty risk, and to
 all of the risks of their underlying securities and derivatives. They are also subject to credit risk with respect both to the issuer
 and, if applicable, to the underlying security or borrower. If the underlying investment or index does not perform as anticipated,
 the structured note might pay less interest than the stated coupon payment or repay less principal upon maturity. The
 price of structured notes may be very volatile and they may have a limited trading market, making it difficult to value them or
 sell them at an acceptable price. In some cases, a
 Fund may enter into agreements with an issuer of structured notes to purchase
 minimum amounts of those notes over time.

**Emerging Markets Risk**<br>When investing in emerging markets, the risks of investing in foreign securities are heightened. Emerging markets have unique risks that are greater than, or in addition to, the risks associated with investing in developed markets because emerging markets are generally smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other developed markets. There are also risks of: greater political and economic uncertainties; an economy's dependence on revenues from particular commodities or on international aid or development assistance; currency transfer restrictions; a limited number of potential buyers for such securities, resulting in increased volatility and limited liquidity for emerging market securities; trading suspensions and other restrictions on investment; delays and disruptions in securities clearing and settlement procedures; and significant limitations on investor rights and recourse. The economies and political environments of emerging market countries tend to be more unstable than those of developed countries, resulting in more volatile rates of return than the developed markets and substantially greater risk to investors. The governments of emerging market countries may also be more unstable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, intervene in the financial markets, and/or impose burdensome taxes that could adversely affect security prices. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and less reliable clearance and settlement, registration, and custodial procedures. In addition, there may be less publicly available or less reliable information about issuers in emerging markets than would be available about issuers in more developed capital markets, which can impede the sub-advisor's ability to accurately evaluate foreign securities. Such issuers may not be subject to accounting, auditing and financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain emerging market countries, fraud and corruption may be more prevalent than in developed market countries, and investor protections may be more limited than those in other countries. It may be difficult to obtain or enforce legal judgments against non-U.S. companies and non-U.S. persons in foreign jurisdictions, either through the foreign judicial system or through a private arbitration process. These matters have the potential to impact a Fund's investment objective and performance.

**Foreign Exposure Risk**<br>Exposure to non-U.S. issuers carries potential risks not associated with exposure to U.S. issuers. Such risks may include, but are not limited to: (1) political and financial instability, (2) less liquidity, (3) greater volatility, and (4) different government regulation of issuers. To the extent a Fund exposes a significant portion of its assets to securities of non-U.S. issuers domiciled in a single country or region, it is more likely to be affected by events or conditions of that country or region. A Fund's exposure to a non-U.S. issuer may subject a Fund to regulatory, political, currency, security, economic and other risks associated with that country, including tariffs, trade disputes or the imposition of economic and other sanctions by the U.S. or another country against a particular country, as well as competition from subsidized foreign competitors with lower production costs. There may be restrictions on the flow of international capital, including the possible seizure or nationalization of the assets of non-U.S. issuers to which the Fund is exposed. 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.

**High-Yield Securities Risk**<br>Exposure to high-yield securities (commonly referred to as ''junk bonds'') generally involves significantly greater risks of loss of your money than an investment in investment-grade securities. Compared with issuers of investment grade securities, issuers of high-yield securities are more likely to encounter financial difficulties and to be materially affected by these difficulties. High-yield debt securities may fluctuate more widely in price and yield and may fall in price when the economy is weak or expected to become weak. These securities also may be difficult to sell at the time and price a Fund desires. High-yield securities are considered to be speculative with

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respect to an issuer's ability to pay interest and principal and carry a greater risk that issuers of lower-rated securities will default on the timely payment of principal or interest. Rising interest rates may compound these difficulties and reduce an issuer's ability to repay principal and interest obligations. Issuers of lower-rated securities also have a greater risk of default or bankruptcy. Issuers of securities that are in default or have defaulted may fail to resume principal or interest payments, in which case a Fund may lose its entire investment. Below-investment-grade securities may experience greater price volatility and less liquidity than investment-grade securities.

Lower-rated securities are subject to certain risks that may not be present with investments in higher-grade securities. The lower rating of certain high-yielding corporate income securities reflects a greater possibility that the financial condition of the issuer or adverse changes in general economic conditions may impair the ability of the issuer to pay income and principal. Changes by credit rating agencies in their ratings of a fixed-income security also may affect the value of these investments. However, allocating investments among securities of different issuers could reduce the risks of owning any such securities separately. The prices of these high-yield securities tend to be less sensitive to interest rate changes than investment-grade investments, but more sensitive to adverse economic changes or individual corporate developments. During economic downturns or periods of rising interest rates, highly leveraged issuers may experience financial stress that adversely affects their ability to service principal and interest payment obligations, to meet projected business goals or to obtain additional financing, and the markets for their securities may be more volatile. If an issuer defaults, a Fund may incur additional expenses to seek recovery. Additionally, accruals of interest income for a Fund may have to be adjusted in the event of default. In the event of an issuer's default, a Fund may write off prior income accruals for that issuer, resulting in a reduction in a Fund's current dividend payment. Frequently, the higher yields of high-yielding securities may not reflect the value of the income stream that holders of such securities may expect, but rather the risk that such securities may lose a substantial portion of their value as a result of their issuer's financial restructuring or default.

The credit rating of a security may not accurately reflect the actual credit risk associated with such a security. The creditworthiness of issuers of these securities may be more complex to analyze than that of issuers of investment grade debt securities, and the overreliance on credit ratings may present additional risks.

Adverse publicity and investor perceptions, whether or not based on fundamental analysis, may decrease the values and liquidity of such securities, especially in a thinly traded or illiquid market. To the extent a Fund owns or may acquire illiquid or restricted high-yield securities or unrated securities of comparable quality, these securities may involve special registration responsibilities, liabilities, costs, and liquidity and valuation difficulties.

**Infrastructure Investments Risk**<br>The values of a Fund's investment in securities and other obligations of U.S. and non-U.S. issuers providing exposure to infrastructure investments ("Infrastructure Investments") may be entirely dependent upon the successful development, construction, maintenance, renovation, enhancement or operation of infrastructure assets or infrastructure-related projects. In the case of debt instruments or loans issued to finance (or refinance) the ownership, development, construction, maintenance, renovation, enhancement, or operation of infrastructure assets, a Fund may be entirely dependent on revenues or profits earned in respect of the infrastructure asset or project to receive the repayment of any principal and interest owed to it. Accordingly, a Fund has significant exposure to adverse economic, regulatory, political, legal, demographic, environmental and other developments affecting the success of the infrastructure assets or projects in which it directly or indirectly invests.

Infrastructure Investments are subject to a variety of risk factors that may adversely affect their success including significant use of leverage, high financing or interest costs, costs associated with environmental and other regulations, the effects of economic slowdown and surplus capacity, increased competition from other providers of similar services, unfavorable demographic trends, obsolescence of the related service or product it provides, cost over-runs, developmental delays, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies, poor planning, unexpected maintenance capital expenditures, increased operating expenses, and other factors. Additionally, infrastructure-related projects may be subject to regulation by various governmental authorities, including with respect to the rates they can charge for their products or services, and can be significantly affected by government spending policies because infrastructure-related issuers may rely, to a significant extent, on U.S. and foreign government demand for their products and services.

Infrastructure Investments (and related infrastructure assets) may also be adversely affected by natural disasters, geopolitical tensions, wars, terrorism or other catastrophes, legal challenges due to environmental, operational or other issues, the imposition of special tariffs or changes in tax laws, changes in exchange rates or interest rates, changes in prices for competitive services, economic conditions, tax treatment, removal or diminution of governmental subsidies, additional regulation, governmental intervention, litigation, negative publicity and public perception and unfavorable events in the regions where assets are located (e.g., expropriation, nationalization, confiscation of assets and property or imposition of restrictions on foreign investments and repatriation of capital, military coups, social unrest, violence or labor unrest). There is also the risk that corruption may negatively

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affect infrastructure projects and other infrastructure assets, especially in emerging markets, resulting in, among other things, delays and cost overruns. Infrastructure projects may face competition from government-sponsored projects, which could decrease the revenues generated from the asset or the number of available investment opportunities for a Fund.

A significant portion of the revenues of certain infrastructure assets or projects may be from one customer or a relatively small number of customers, including governmental entities and utilities. Accordingly, the values of certain Infrastructure Investments may be highly sensitive to the loss of one or more of those customers, and the loss of any single client may result in the issuer's payment default.

A Fund may make investments in infrastructure assets or projects that have not yet completed the construction phases of their development and which are not yet generating cash or revenue. Unexpected delays in completion of the construction phase in relation to any such project, any "overrun" in the costs of construction or any construction or maintenance defect, may adversely affect the ability of the issuer of a Fund's investments to service its debts. Any resulting default may adversely affect the value of a Fund's investment.

A Fund may make investments from time to time in infrastructure loan assets which are held on existing lenders' books, which means that a default by the counterparty may expose a Fund to losses regardless of the performance of the underlying projects or loans. The market for infrastructure bonds and loans is emerging but also rapidly developing, which means there may be fewer investment opportunities than other fixed-income sectors. There also may be fewer market participants willing to purchase infrastructure-related investments compared to other debt markets. Infrastructure assets and related investment opportunities may be more prevalent in developing or emerging markets, where certain of the risks described above, including the risk of default, may be heightened. See "Emerging Markets Risk."

To the extent that there are environmental liabilities arising in the future in relation to any sites owned or used by an infrastructure company or project (including, for example, clean-up and remediation liabilities), a company may be required to contribute financially towards any such liabilities which in turn may increase its risk of defaulting and/or adversely affect the values of a Fund's investments.

Some infrastructure-related projects may utilize relatively new or developing technologies and there may be issues in relation to those technologies that become apparent only in the future. Such issues may give rise to additional costs for the relevant issuer or project or may otherwise result in the financial performance of the infrastructure project being poorer than anticipated. This may adversely affect the values of a Fund's investments. Additionally, technological advances in the future may reduce the competitive efficiency of existing or commissioned infrastructure projects, services, or networks.

Infrastructure assets, including investments related to infrastructure projects and infrastructure-related companies, may be more susceptible to adverse economic or regulatory occurrences and other specific risks affecting their industries, which may adversely affect the development and success of the infrastructure companies and projects related to assets in which a Fund invests; delay or limit repayment of the principal and interest payments on a borrower's loans or other debt; adversely affect a Fund's rights in collateral relating to a loan or other investment; or otherwise adversely affect the value of a Fund's investments.

A Fund's ability to recover in respect of a defaulted bond or loan may be limited. Some infrastructure-related debt instruments may not be secured by any assets and may not be supported by other credit enhancements. Where recourse to a guarantor, or other third party, or other assets exists, recovery on a defaulted bond or loan may require a Fund to incur significant costs and delay and/or require participation in restructuring or bankruptcy proceedings. In certain jurisdictions, a Fund may have limited or no rights in respect of such proceedings. In the case of a defaulted bond or loan, a Fund may determine to sell its investment or claim at a price substantially below what it might receive if it participated in a restructuring or bankruptcy proceeding for a variety of reasons, including to avoid incurring significant costs, delay or uncertainty, or because of the potentially adverse consequences that may occur if a Fund takes possession of certain types of assets.

In addition to the risks described above, each of which may adversely affect the values of a Fund's investments, sector-specific risks may also adversely affect the values of a Fund's investments. A summary of some of the principal sector-specific risks is included below. The inclusion of a specific risk below with respect to a specific sector does not mean that that risk does not also apply in respect of a Fund's other investments:

• Transportation. Transportation-related infrastructure assets may be adversely affected by, among other things, economic
 and market changes, fuel prices, labor relations, geo-political concerns and insurance costs. Transportation-related infrastructure
 assets and related businesses may also be subject to significant government regulation and oversight, which may adversely
 affect their businesses.

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• Electric
 Utilities and Power. Deregulation
 may subject utility- and power-related infrastructure assets to greater competition
 and may adversely affect their performance. Assets in the utilities and/or power industries may have difficulty obtaining
 financing for large construction projects during periods of inflation or unsettled capital markets; face restrictions on operations
 and increased cost and delays attributable to environmental considerations and regulation; find that existing plants, equipment
 or products have been rendered obsolete by technological innovations; or be subject to increased costs because of the
 scarcity of certain fuels or the effects of man-made or natural disasters. Existing and future regulations or legislation may make
 it difficult for utility and power assets to operate profitably. Government regulators monitor and control utility and power
 revenues and costs, and therefore may limit utility-related profits. There is no assurance that regulatory authorities will grant
 rate increases in the future. Energy conservation and changes in climate or environmental policy may also have a significant
 adverse impact on the revenues and expenses of utility and power-related assets. Additionally, independent power producers
 may face other risks such as but not limited to (i)  market risks, (ii)  project risks, and (iii)  structural risk.

• Energy. Energy-related infrastructure assets may be highly cyclical and highly dependent on energy prices. The success of
 such assets can be strongly affected by one or more of the following: the levels and volatility of global energy prices, energy supply
 and demand, capital expenditures on exploration and production of energy sources, energy conservation efforts, exchange
 rates, interest rates, economic conditions, tax treatment, increased competition and technological advances. Infrastructure
 assets and projects in this sector may be subject to substantial government regulation and contractual fixed pricing,
 which may increase the cost of doing business and limit the revenue or earnings available to support the assets' financing.
 Energy-related projects face a significant risk of liability from accidents resulting in injury or loss of life or property, pollution
 or other environmental problems, equipment malfunctions or mishandling of materials and a risk of loss from wars, terrorism,
 political strife, geopolitical tensions, and natural disasters. Assets involving pipelines are subject to certain risks, including
 pipeline and equipment leaks and ruptures, explosions, fires, unscheduled downtime, transportation interruptions, discharges
 or releases of toxic or hazardous gases and other environmental risks. Any such event could have serious consequences
 for the general population of the affected area. Energy-related projects can be significantly affected by the supply
 of, and demand for, specific products (e.g., oil and natural gas) and services, exploration and production spending, government
 subsidization, world events and general economic conditions. Energy-related assets may have relatively high levels of
 debt and may be more likely to have to restructure their debt if there are downturns in energy markets or the economy as a whole.

• Renewable
 Energy. Governments
 may provide a range of incentives and subsidies for specific types of assets, especially for
 renewable energy assets. Changes in the application of government policy in relation to the incentives and subsidies that they
 provide may have a material impact upon the profitability or viability of renewable-energy related infrastructure-related assets.
 The generation of power from renewable energy sources tends to be reliant upon relatively recent technological developments
 (or the application thereof), and therefore unforeseen technical deficiencies with installations may occur. Moreover,
 the reliance of any renewable energy project, or group of projects, on a variable resource (for example, ambient light
 in the case of solar power projects, wind speed in the case of wind power projects and waste in the case of waste-to-energy
 projects) may affect the profitability of a site or sites. In addition, in the event of a failure of a utility or other private
 company contracted to purchase power produced by an installation or expiration of such a contract, in which the Fund has
 invested, difficulties may arise in contracting with a replacement power purchaser.

• Communication
 Networks and Equipment. The telecommunications market is characterized by increasing competition and
 regulation by various regulatory authorities. Infrastructure assets in the telecommunications sector may encounter distressed
 cash flows due to the need to commit substantial capital to meet increasing competition, particularly in developing new
 products and services using new technology. Technological innovations may make the products and services of certain assets
 obsolete. Telecommunication-related infrastructure assets may depend on franchises or licenses in order to provide services
 in a given location. Licensing and franchise rights in the telecommunications sector are limited, which may provide an advantage
 to certain participants. Limited availability of such rights, high barriers to market entry and increasing regulatory oversight,
 among other factors, has led to consolidation within the sector, which could lead to further regulation or other negative
 effects in the future. Various forms of cyber attack, the sophistication and lethality of which continues to evolve, threaten
 communication networks and could severely hamper any infrastructure project dependent upon communication networks
 and equipment.

• Public
 and Social Infrastructure. Public and social infrastructure assets, such as hospitals, schools, government accommodations,
 and other public service facilities projects, may be subject to risks that include, but are not limited to, costs associated
 with governmental, environmental and other regulations, the effects of economic slowdowns, increased competition
 from other providers of such services, uncertainties concerning costs, adverse political developments, and the level of
 government spending on infrastructure projects.

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• Metals
 and Mining. Investments
 in metals and mining related infrastructure assets may be speculative and subject to greater
 price volatility than investments in other types of companies. The performance of assets in this sector is related to, among
 other things, worldwide metal prices, and extraction and production costs. Worldwide metal prices may fluctuate substantially
 over short periods of time. Metals and mining assets may also be subject to the effects of competitive pressures in the
 metals and mining industry.

• Industrial. Industrial-related infrastructure assets may be adversely affected by supply and demand both for their specific product
 or service and for industrial sector products in general. Government regulation, world events, exchange rates and economic
 conditions, technological developments and liabilities for environmental damage and general civil liabilities will likewise
 affect the performance of these assets and their ability to repay their debts. The industrials sector may also be adversely
 affected by changes or trends in commodity prices, which can be highly volatile.

**Interest Rate Risk**<br>Investments in fixed-income securities 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, will move in the opposite direction as movements in interest rates. For example, the value of a Fund's fixed-income investments 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 a Fund's investments to decline. Additionally, the value of 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. Rising interest rates can reduce companies' profitability and their ability to pay dividends. Interest rate increases, including significant or rapid increases, may result in a decline in the value of bonds or derivatives held by a Fund, make issuers less willing or able to make principal and interest payments on fixed-income investments when due, lead to heightened volatility in the fixed-income markets and adversely affect the liquidity of certain fixed-income investments, any of which may result in substantial losses to a Fund. When interest rates decline, issuers may prepay higher-yielding securities held by a Fund, resulting in a Fund reinvesting in securities with lower yields, which may cause a decline in its income. Interest rate changes may have a more pronounced effect on the market value of fixed-rate instruments than on floating-rate instruments. The value of floating rate and variable securities may decline if their interest rates do not rise as quickly, or as much, as general interest rates. The prices of fixed-income securities are also affected by their durations. 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 a Fund's investments in investments with longer durations and terms to maturity to decline, which may adversely affect the value of a Fund. For example, if a bond has a duration of two years, a 1% increase in interest rates could be expected to result in a 2% decrease in the value of the bond. Alternatively, if a bond has a duration of three years, a 1% increase in interest rates could be expected to result in a 3% decrease in the value of the bond. Yields of fixed-income securities will fluctuate over time. In addition, decreases in fixed-income dealer market-making capacity may lead to lower trading volume, heightened volatility, wider bid-ask spreads, and less transparent pricing in certain fixed-income markets. <br>A Fund may not be able to hedge against changes in interest rates or may choose not to do so for cost or other reasons. In addition, any hedges may not work as intended.

**Investment Risk**<br>An investment in a 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. A Fund should not be relied upon as a complete investment program. The share price of a Fund fluctuates, which means that when you sell your shares of a Fund, they could be worth less than what you paid for them. Therefore, you may lose money by investing in a 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.

**Liquidity Risk**<br>A Fund is susceptible to the risk that certain investments held by a 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 a 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, a Fund may have to lower the price on certain securities that it is trying to sell, sell other securities instead or forgo an investment opportunity, any of which could have a negative effect on Fund management or performance. An inability to sell a portfolio position

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can adversely affect a Fund's NAV or prevent a Fund from being able to take advantage of other investment opportunities. A Fund could lose money if it is unable to dispose of an investment at a time that is most beneficial to a Fund. Unexpected redemptions or redemptions by a few large investors in a Fund may force a Fund to sell certain investments at unfavorable prices to meet redemption requests or other cash needs and may have a significant adverse effect on a Fund's NAV per share and remaining Fund shareholders. This could negatively affect a Fund's ability to buy or sell debt securities and increase the related volatility and trading costs. A Fund may lose money if it is forced to sell certain investments at unfavorable prices to meet redemption requests or other cash needs. Judgment plays a greater role in pricing illiquid investments than in investments with more active markets.

**Loan Interests Risk**<br>In making investments in loans that are made by banks or other financial intermediaries to borrowers, a Fund will depend primarily on the creditworthiness of the borrower for payment of principal and interest, and will also rely on the financial institution to make principal and interest payments to a Fund once it receives payment on the underlying loan or to pursue appropriate remedies against a borrower in the event that the borrower defaults, which may expose a Fund to the credit risk of both the financial institution that made the loan and the underlying borrower. The market for bank loans may not be highly liquid, and a Fund may have difficulty selling them. Unlike publicly traded common stocks which trade on national exchanges, there is no central place or exchange for loans, including bank loans and senior loans, to trade. Loans trade in an over-the-counter market, and confirmation and settlement, which are effected through standardized procedures and documentation, may take significantly longer than seven days to complete. Extended trade settlement periods may, in unusual market conditions with a high volume of shareholder redemptions, present a risk to shareholders regarding a Fund's ability to pay redemption proceeds within the allowable time periods stated in its prospectus. The secondary market for floating rate loans also may be subject to irregular trading activity and wide bid/ask spreads. The lack of an active trading market for certain loans may impair the ability of a Fund to sell its loan interests at a time when it may otherwise be desirable to do so or may require a Fund to sell them at prices that are less than what a Fund regards as their fair market value, which would cause a material decline in a Fund's NAV and may make it difficult to value such loans. Accordingly, loan interests may at times be illiquid. Restrictions on transfers in loan agreements, a lack of publicly available information and other factors may make bank loans more difficult to sell at an advantageous time or price than other types of securities or instruments. There may be less readily available information about loans. Interests in loans made to finance highly leveraged companies or transactions, such as corporate acquisitions, may be especially vulnerable to adverse changes in economic or market conditions. It may be difficult for a Fund to obtain an accurate picture of a lending bank's financial condition. Loan interests may not be considered "securities," and purchasers, such as a Fund, therefore may not be entitled to rely on the anti-fraud protections of the federal securities laws. A Fund also may be in possession of material non-public information about a borrower as a result of its ownership of a loan instrument of such borrower. Because of prohibitions on trading in securities of issuers while in possession of such information, a Fund might be unable to enter into a transaction in a security of that borrower when it would otherwise be advantageous to do so. Any steps taken to ensure that a Fund does not receive material non-public information about a security may have the effect of causing a Fund to have less information than other investors about certain interests in which it seeks to invest. Interests in secured loans have the benefit of collateral and, typically, of restrictive covenants limiting the ability of the borrower to further encumber its assets, although many covenants may be waived or modified with the consent of a certain percentage of the holders of the loans even if a Fund does not consent. There is a risk that the value of any collateral securing a loan in which a Fund has an interest may decline and that the collateral may not be sufficient to cover the amount owed on the loan. In most loan agreements there is no formal requirement to pledge additional collateral. In the event the borrower defaults, a Fund's access to the collateral may be limited or delayed by bankruptcy or other insolvency laws, or may be depleted by the interests of more senior lenders. 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 a Fund has an interest. In addition, if a secured loan is foreclosed, the Fund would likely bear the costs and liabilities associated with owning and disposing of the collateral. A Fund may acquire a loan interest by direct investment as a lender, by obtaining an assignment of all or a portion of the interests in a particular loan that are held by an original lender or a prior assignee or by participation in a loan interest that is held by another party. As an assignee, a Fund normally will succeed to all rights and obligations of its assignor with respect to the portion of the loan that is being assigned. However, the rights and obligations acquired by the purchaser of a loan assignment may differ from, and be more limited than, those held by the original lenders or the assignor. When a Fund's loan interest is a participation, a Fund may have less control over the exercise of remedies than the party selling the participation interest, and it normally would not have any direct rights against the borrower. As a participant, a Fund also would be subject to the risk that the party selling the participation interest would not remit a Fund's pro rata share of loan payments to a Fund.

**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 10-15 years, 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. The imposition by the U.S. of tariffs on goods imported from foreign countries and reciprocal tariffs levied on U.S. goods by those countries also may lead to volatility and instability in domestic and foreign markets. 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, cybersecurity incidents, 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 economic and political changes within the U.S. and abroad, such as inflation, changes in interest rates, recessions, 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 or occurrence of a federal government shutdown and threats or the occurrence of a failure 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, during periods of significant volatility, the risks discussed herein associated with an investment in the Fund may be increased. National economies are substantially interconnected, as are global financial markets, which creates the possibility that conditions in one country or region might adversely impact issuers in a different country or region. However, the interconnectedness of economies and/or markets may be changing, which may impact such economies and markets in ways that cannot be foreseen at this time.

Some countries, including the U.S., have adopted more protectionist trade policies, including trade tariffs and other trade barriers, which is a trend that appears to be continuing globally. Slowing global economic growth, the rise in protectionist trade policies, inflationary pressures, changes to some major international trade agreements, risks associated with trade agreements between countries and regions, including the U.S. and other foreign nations, political or economic dysfunction within some countries or regions, including the U.S., and dramatic changes in consumer sentiment and commodity and currency prices could affect the economies and markets of many nations, including the U.S., in ways that cannot necessarily be foreseen at the present time and may create significant market volatility. In addition, these policies, including the impact on the U.S. dollar, may decrease foreign demand for U.S. assets, which could have a negative impact on certain issuers and/or industries. The U.S. has imposed or threatened to impose tariffs and other trade barriers on imports of certain categories of goods from Canada, Mexico, and European countries. The U.S. also has imposed or threatened to impose tariffs and other trade barriers on imports of certain categories of goods from China, has restricted sales of certain categories of goods to China, and has established barriers to investments in China. These countries have imposed or threatened to impose retaliatory tariffs on U.S. goods. If relations between the U.S. and these and other foreign countries do not improve or continue to deteriorate, markets and individual securities may be severely affected both regionally and globally, and the value of the Fund's investments may go down.

Although interest rates were unusually low in the U.S. and abroad for a period of time, in 2022, the U.S. Federal Reserve (the "Federal Reserve") and certain foreign central banks began to raise interest rates as part of their efforts to address rising inflation. The Federal Reserve and certain foreign central banks subsequently started to lower interest rates in September 2024, though economic or other factors, such as Federal Reserve policy changes, could have an effect on this. It is difficult to accurately predict the pace at which interest rates might change, the timing, frequency or magnitude of any such changes in interest rates, or when such changes might stop or again reverse course. Additionally, various economic and political factors could cause the Federal Reserve or foreign central 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 changes in interest rates could lead to significant market volatility or reduce liquidity in certain sectors of the market. It is difficult to predict the impact on various markets of significant interest rate changes or other significant policy changes. Deteriorating economic fundamentals may increase the risk of default or insolvency of particular issuers, negatively impact market value, increase market volatility, cause credit spreads to widen, reduce bank balance sheets and cause unexpected changes in interest rates. Any of these could cause an increase in market volatility, reduce liquidity across various sectors or markets or decrease confidence in the markets. Also, regulators have expressed concern that changes in interest rates may cause investors to sell fixed income securities faster than the market can absorb them, contributing to price volatility. Historical patterns of correlation among asset classes may break down in unanticipated ways during times of high volatility, disrupting investment programs and potentially causing losses.

Tensions, war or open conflict between nations, such as between Russia and Ukraine, in the Middle East or in eastern Asia could affect the economies of many nations, including the United States. The duration of ongoing hostilities in the Middle East and between Russia and Ukraine, and any 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 whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries or regions directly affected.

Regulators in the U.S. have adopted a number of changes to regulations involving the markets and issuers, some of which apply to the Fund. The full effect of various newly adopted regulations is not currently known. Due to the scope of regulations being adopted, certain of these changes could limit the Fund's ability to pursue its investment strategies or make certain investments, may make it more costly for the Fund to operate, or adversely impact performance. Additionally, it is possible that recently adopted regulations could be further revised or rescinded, which creates material uncertainty regarding their impact to the Fund.

Further, advancements in technology may also adversely impact market movements and liquidity and may affect the overall performance of the Fund. For example, the advanced development and increased regulation of artificial intelligence may impact the economy and the performance of the Fund. As artificial intelligence is used more widely, the value of the Fund's holdings may be impacted, which could impact the overall performance of the Fund.

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 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. China's economy, which has been sustained through debt-financed spending on housing and infrastructure, appears to be experiencing a significant slowdown and growing at a lower rate than prior years. While the Chinese government appears to be taking measures to address these issues, due to the size of China's economy, the resolution of these issues could impact a number of other countries.

Certain illnesses spread rapidly and have the potential to significantly and adversely affect the global economy. The impact of epidemics and/or pandemics that may arise in the future could negatively affect the economies of many nations, individual companies and the global securities and commodities markets, including their liquidity, in ways that cannot necessarily be foreseen at the present time and could last for an extended period of time.

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 storms 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 in ways that cannot be foreseen, 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. Losses related to climate change 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.

**Market Timing Risk**<br>The Fund is subject to the risk of market timing activities by investors due to the nature of its investments, which requires the Fund in certain instances to fair value certain of its investments. Some investors may engage in frequent short-term trading in the Fund to take advantage of any price differentials that may be reflected in the NAV of the Fund's shares. Frequent trading by Fund shareholders poses risks to other shareholders in the Fund, including (i) the dilution of the Fund's NAV, (ii) an increase in the Fund's expenses, and (iii) interference with the ability to execute efficient investment strategies. While the Manager monitors trading in the Fund, there is no guarantee that it can detect all market timing activities.

**Model and Data Risk**<br>The success of a sub-advisor's investment strategy depends largely on the effectiveness of its research models for screening assets for investment. Models and data are used to screen potential investments for a Fund. When models or data prove to be incorrect or incomplete, any decisions made in reliance thereon expose a Fund to potential risks. Securities selected using models or data can react differently to issuer, political, market, and economic developments than the market as a whole or securities selected using only fundamental analysis, which could adversely affect value. Some of the models used by the sub-advisor are predictive in nature. The use of predictive models has inherent risks. Because predictive models are usually constructed based on historical data supplied by

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third parties, the success of relying on such models may depend heavily on the accuracy and reliability of the supplied historical data. Historical data inputs may be subject to revision or correction, which may diminish the reliability and predictive quality of results. Data for some companies, particularly non-U.S. companies, may be less available and/or less current than data for other companies. In addition, factors that affect a security's value can change over time and these changes may not be reflected in the quantitative model. There can be no assurance that the models are complete or accurate, or representative of future market cycles, nor that they will always be beneficial to a Fund if they are accurate. Additionally, programs may become outdated or experience malfunctions which may not be identified by the sub-advisor and therefore may also result in losses to a Fund. The sub-advisor's security selection can be adversely affected if it relies on erroneous or outdated data, and there is a risk that the finished model may contain errors, omissions, imperfections or malfunctions, one or more of which could adversely affect a Fund's performance. These models may negatively affect Fund performance for various other reasons, including human judgment, inaccuracy of historical data and non-quantitative factors (such as market or trading system dysfunctions, investor fear or overreaction).

Changing and unforeseen market dynamics could also lead to a decrease in the short-term or long-term effectiveness of a model. Models may lose their validity, leading to potential losses. No assurance can be given that a model will be successful under all or any market conditions. The use of artificial intelligence or other evolving or emerging technologies presents significant risks and may exacerbate the aforementioned risks. The data used to build the model is extremely complex and involves financial, economic, econometric and statistical theories which are then translated into computer code to create the applicable program. Human judgment plays a role in building, utilizing, testing and modifying the financial algorithms and formulas used in these models. Additionally, the data, which is typically supplied by third parties, can be imprecise or become stale due to new events or changing circumstances. Market performance can be affected by non-quantitative factors (for example, investor fear, over-reaction or other emotional considerations) that are not easily integrated into modeling programs. There may also be errors in the code for the models or issues relating to the computer systems used to screen securities.

**Mortgage-Backed and Mortgage-Related Securities Risk**<br>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. 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. These securities tend to be more sensitive to changes in interest rates than other types of debt securities. 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, 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 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 rising interest rates, a 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 a 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.

• Mortgage
 Pass-Through Securities Risk. Mortgage pass-through securities are sensitive to interest rate changes, and small movements in interest
 rates, bothincreases and decreases, may quickly and significantly affect the value of certain mortgage pass-through securities. Mortgage-backed
 securities tend toincrease in value less than other debt securities when interest rates decline, but are subject to similar or greater
 risk of decline in market value during periodsof rising interest rates. Certain of the mortgage pass-through securities in which
 the Fund may invest in are issued or guaranteed by agencies orinstrumentalities 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 the Fund to lose moneyor underperform. The
 risks of investing in mortgage pass-through securities include, among others, interest rate risk, credit risk, prepayment risk andextension
 risk, as well as risks associated with the nature of the underlying mortgage assets and the servicing of those assets. These securities
 are subject tothe risk of default on the underlying mortgages, and such risk is heightened during periods of economic downturn. Transactions
 in mortgage pass-throughsecurities often occur through to-be-announced ("TBA") transactions. If a TBA counterparty defaults
 or goes bankrupt the Fund may experience adversemarket action, expenses, or delays in connection with the purchase or sale of the
 pools of mortgage pass-through securities specified in a TBA transactionwhich can cause the Fund to lose money or underperform.

**Municipal Securities Risk**<br> The value of municipal securities, and the ability of a municipal issuer to make payments, can be affected by uncertainties in the municipal securities market, including: litigation; the strength of the local or national economy; the issuer's ability to raise revenues through tax or other means; budgetary constraints of local, state and federal governments upon which the issuer may be relying for funding; a legislature's willingness or ability to appropriate funds needed to pay municipal securities obligations; the bankruptcy of the issuer; adverse political and legislative changes, including to eliminate or limit the tax-exempt status of municipal bond interest or dividends; and other changes in the financial condition of a municipality.

Municipal securities and their issuers may be more susceptible to downgrade, default and bankruptcy as a result of economic stress. Factors contributing to the economic stress on municipalities may include lower property tax collections as a result of lower home values, lower sales tax revenue as a result of consumers cutting back spending, and lower income tax revenue as a result of a higher unemployment rate. In addition, since some municipal obligations may be secured or guaranteed by banks and other institutions, the risk to a Fund could increase if the banking or financial sector suffers an economic downturn and/or if the credit ratings of the institutions issuing the guarantee are downgraded or at risk of being downgraded by a national rating organization. If such events

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were to occur, the value of the security could decrease or the value could be lost entirely, and it may be difficult or impossible for a Fund to sell the security at the time and the price that normally prevails in the market. At times, municipal issuers have defaulted on obligations or commenced insolvency proceedings. Financial difficulties of municipal issuers may continue or get worse in the future. Reductions in tax rates may make municipal securities less attractive in comparison to taxable bonds. Some obligations may be difficult to trade or interest payments may be tied only to a specific stream of revenue.

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

• Closed-end
 Funds Risk. Because
 closed-end funds may be listed on an exchange, they may be subject to trading halts, may
 trade at a discount or premium to their NAV and may not be liquid. There can be no assurance that the market discount on
 shares of any closed-end fund purchased by a
 Fund will ever decrease, and it is possible that this market discount may increase,
 in which case a Fund
 may suffer realized or unrealized capital losses due to further decline in the market price, thereby
 adversely affecting the NAV of a
 Fund's shares. Similarly, there can be no assurance that any shares of a closed-end fund
 purchased by a Fund
 at a premium will continue to trade at a premium or that the premium will not decrease subsequent to
 a purchase of such shares by a
 Fund. The lack of an active trading market or the halting of trading in the shares of closed-end
 funds in which a
 Fund invests may result in losses to a
 Fund. In addition, the market price of closed-end funds tends
 to rise more in response to buying demand and fall more in response to selling pressure than is the case with larger-capitalization
 companies.

• Exchange-Traded
 Funds ("ETFs") Risk. Because ETFs are listed on an exchange, they may be subject to the following risks
 that do not apply to conventional funds: (1) the market price of an ETF's shares may trade at a discount or premium to its NAV;
 (2) an active trading market for an ETF's shares may not develop or be maintained; or (3) trading of an ETF's shares may be
 halted if the listing exchange's officials deem such action appropriate, the shares are delisted from the exchange, or the activation
 of market-wide "circuit breakers" (which are tied to large decreases in stock prices) halts stock trading generally. An ETF
 that tracks an index may not precisely replicate the returns of that index and may not be permitted to sell poorly performing
 stocks that are included in its index. An actively-managed ETF's performance will reflect its adviser's ability to make investment
 decisions that are suited to achieving the ETF's investment objectives. Future legislative or regulatory changes, including
 changes in taxation, could impact the operation of ETFs.

• Government
 Money Market Funds Risk. Investments in government money market funds are subject to interest rate risk,
 credit risk, and market risk. Although
 a government money market fund seeks to preserve the value of a
 fund's investment
 at $1.00 per share, at times, the share price of government money market funds may fall below the $1.00 share price,
 especially during periods of high redemption pressures, illiquid markets, and/or significant market volatility. Credit risk is 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 that it may default completely.
 There is the risk that the issuers or guarantors of securities owned by a government money market fund, including securities
 issued by U.S. Government agencies, which are not backed by the full faith and credit of the U.S. Government, will default
 on the payment of principal or interest or the obligation to repurchase securities from the government money market fund.
 This could cause the government money market fund's NAV to decline below $1.00 per share, which would cause the Fund's
 investment to lose value.

**Prepayment and Extension Risk**<br>Prepayment and extension risk is the risk that a bond or other fixed-income security or investment might, in the case of prepayment risk, be called or otherwise converted, prepaid or redeemed before maturity and, in the case of extension risk, that the investment might not be prepaid as expected. 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 or otherwise call, convert or redeem the security prior to the security 's expected maturity date. If this occurs, no additional interest will be paid on the investment, and 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

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portion of its principal investment. Any of these may result in a reduced yield to a Fund. 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.<br>Conversely, extension risk is the risk that, as a result of higher interest rates or other factors, borrowers decrease prepayments. This may result in the extension of a security's effective maturity, increase the risk of default or delayed payment, heighten interest rate risk and increase the potential for a decline in an investment's price. A rise in interest rates or lack of refinancing opportunities can cause the fund's average maturity to lengthen unexpectedly. This would increase the fund's sensitivity to rising rates and its potential for price declines. 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. Extensions of obligations could cause a Fund to exhibit additional volatility and hold securities paying lower-than-market rates of interest. Either case could hurt a Fund's performance.

**Redemption Risk**<br>The Fund may experience periods of heavy redemptions that could cause the Fund to sell assets at inopportune times or at a loss or a depressed value. Heavy redemptions, whether by a few large investors or many smaller investors, could hurt the Fund's performance. Redemption risk is greater to the extent that one or more investors or intermediaries control a large percentage of investments in the Fund, have short investment horizons, or have unpredictable cash flow needs. The risk of loss is also greater if redemption requests are frequent, occur in times of overall market turmoil or declining prices for the securities sold, or when the securities the Fund wishes to sell are illiquid. The ability or willingness of dealers and other institutional investors to buy or hold fixed-income securities or otherwise to "make a market" in debt securities may also be reduced. These factors, along with an inability to find a ready buyer, or legal restrictions on a security's resale, may result in decreased liquidity and increased volatility in the fixed-income markets, and heightened redemption risk. Certain securities that were liquid when purchased may later become illiquid, particularly in times of overall economic distress. Redemption risk is heightened if the Fund invests in emerging market securities, which are generally less liquid than the securities of U.S. and other developed markets. During periods of heavy redemptions, the Fund may borrow funds through the interfund credit facility, or from a bank line of credit, which may increase costs. The sale of assets to meet redemption requests may create net capital gains or losses, which could cause the Fund to have to distribute substantial capital gains.

**Reliance on Corporate Management and Financial Reporting Risk**<br>The sub-advisor may select investments for a Fund on the basis of information and data made directly available to the sub-advisor by the issuers of securities or through sources other than the issuers such as collateral pool servicers. The sub-advisor has no ability to independently verify such information and data and is therefore dependent upon the integrity of the management of these issuers and of such servicers and the financial and collateral performance reporting processes in general. Information and data provided regarding a particular issuer may not necessarily contain information that the sub-advisor normally considers when evaluating the investment prospects of a company. Investors, such as a Fund, can incur material losses as a result of corporate mismanagement, fraud and accounting irregularities.

**Restricted Securities Risk**<br>Securities not registered in the U.S. under the Securities Act of 1933, as amended (the "Securities Act"), or in non-U.S. markets pursuant to similar regulations, including "Section 4(a)(2)" securities and "Rule 144A" securities, are restricted as to their resale. Such securities may not be listed on an exchange and may have no active trading market. The prices of these securities may be more difficult to determine than publicly traded securities and these securities may involve heightened risk as compared to investments in securities of publicly traded companies. They may be more difficult to purchase or sell at an advantageous time or price because such securities may not be readily marketable in broad public markets, or may have to be held for a certain time period before they can be resold. A Fund may not be able to sell a restricted security when the sub-advisor considers it desirable to do so and/or may have to sell the security at a lower price than a Fund believes is its fair market value. A restricted security that was liquid at the time of purchase may subsequently become illiquid. In addition, transaction costs may be higher for restricted securities and a Fund may receive only limited information regarding the issuer of a restricted security. A Fund may have to bear the expense of registering restricted securities for resale and the risk of substantial delays in effecting the registration. If, during such a delay, adverse market conditions were to develop, a Fund might obtain a less favorable price than prevailed at the time it decided to seek registration of the security.

**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 borrower 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 a 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 a 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, a 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, a 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 a Fund has an interest.

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If an obligation in which a Fund invests, such as a secured loan, is foreclosed, a 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 a Fund would bear the risk that the collateral may decline in value while a Fund is holding it.

Some obligations in which a 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, a 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 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 a 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 Selection Risk**<br>Securities selected for a 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. The value of a security can be more or less volatile than the market as a whole, and a Fund's strategy may fail to produce the intended results. It may not be possible to predict, or to hedge against, a widening in the yield spread of the securities selected for a Fund. This could result in a Fund's underperformance compared to other funds with similar investment objectives.

The prices of the instruments to be traded by a Fund have been subject to periods of excessive volatility in the past and such periods can be expected to recur. Price movements are influenced by many unpredictable factors, such as market sentiment, significant changes in inflation rates, interest rates, commodities, credit spreads, currencies and general economic and political conditions.

**Sovereign and Quasi Sovereign Debt Risk**<br>An investment in sovereign and quasi-sovereign debt obligations involves special risks not present in corporate debt obligations. Sovereign and quasi-sovereign debt securities are issued or guaranteed by a sovereign government or entity affiliated with or backed by a sovereign government. The issuer of the sovereign or quasi-sovereign debt that controls the repayment of the debt may be unable or unwilling to repay principal or interest when due, and a Fund may have limited recourse in the event of a default. In addition, these investments are subject to risk of payment delays or defaults due to, among other things: (1) country cash flow problems, (2) insufficient foreign currency reserves, (3) political considerations, (4) large debt positions relative to the country's economy, (5) policies toward foreign lenders or investors, (6) the failure to implement economic reforms required by the International Monetary Fund or other multilateral agencies, or (7) an inability or unwillingness to repay debts. It may be particularly difficult to enforce the rights of debt holders in frontier and emerging markets. A governmental entity that defaults on an obligation may request additional time in which to repay loans, may request to receive further loans, or may seek to restructure its obligations to reduce interest rates or outstanding principal. There is no legal process for collecting sovereign and quasi-sovereign debt that a government does not pay nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected. Sovereign and quasi-sovereign debt risk is increased for frontier and emerging markets issuers, which are among the largest debtors to commercial banks and foreign governments. At times, certain frontier and emerging market countries have declared moratoria on the payment of principal and interest on external debt. Certain frontier and emerging market countries have experienced difficulty in servicing their sovereign debt on a timely basis, which has led to defaults and the restructuring of certain indebtedness.

**Supranational Risk**<br>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 payments of interest and principal. There is no guarantee that the members will continue to make capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay principal on its debt securities. Political changes in principal donor nations may also unexpectedly disrupt the finances of supranational entities. 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 entitled "Currency Risk."

**Structured Products and Structured Notes Risk**<br>The cash flow or rate of return on a structured investment may be determined by applying a multiplier to the rate of total return on the underlying investments or referenced indicator. Application of a multiplier is comparable to the use of financial leverage, a speculative technique. Leverage magnifies the potential for gain and the risk of loss. As a result, a relatively small decline in the value of the underlying investments or referenced indicator could result in a relatively large loss in the value of a structured product. Holders of structured products indirectly bear risks associated with the underlying investments, index or reference obligation, and are subject to counterparty risk. A Fund generally has the right to receive payments to which it is entitled only from the structured product, and generally does not have direct rights against the issuer. While certain structured investment vehicles enable the investor to acquire interests in a pool of securities without the brokerage and other expenses associated with directly holding the same securities, investors in structured vehicles generally pay their share of the investment vehicle's administrative and other expenses.

Structured products are generally privately offered and sold, and thus, are not registered under the securities laws. Certain structured products may be thinly traded or have a limited trading market and may have the effect of increasing a Fund's illiquidity to the extent that the Fund, at a particular point in time, may be unable to find qualified buyers for these securities. In addition to the general risks associated with fixed income securities discussed herein, structured products carry additional risks including, but not limited to: (i) the possibility that distributions from underlying investments will not be adequate to make interest or other payments; (ii) the quality of the underlying investments may decline in value or default; (iii) the possibility that the security may be subordinate to other classes of the issuer's securities; and (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.

Structured notes are derivative securities for which the amount of principal repayment and/or interest payments is based on the movement of one or more "factors". These factors may include, but are not limited to, currency exchange rates, interest rates (such as the prime lending rate or another industry-standard floating-rate), referenced bonds and stock indices. Some of these factors may or may not correlate to the total rate of return on one or more underlying instruments referenced in such notes. In some cases, the impact of the movements of these factors may increase or decrease through the use of multipliers or deflators.

Investments in structured notes involve risks including interest rate risk, credit risk and market risk. Depending on the factor used and the use of multipliers or deflators, changes in interest rates and movement of the factor may cause significant price fluctuations. Additionally, changes in the reference instrument or security may cause the interest rate on the structured note to be reduced to zero and any further changes in the reference instrument may then reduce the principal amount payable on maturity. In the case of structured notes where the reference instrument is a debt instrument, such as credit-linked notes, the Fund will be subject to the credit risk of the issuer of the reference instrument and the issuer of the structured note.

The Sub-Advisor manages a wide variety of accounts and investment strategies. Investments made on behalf of one client or strategy can raise conflict of interest issues with other of the Sub-Advisor's clients or strategies. For example, the Sub-Advisor may cause a client to purchase an issuer's debt security and cause another client to purchase a different debt security of the same issuer, such as a different bond of the issuer or different tranche of a mortgage-backed security that is subordinated to the investment held by other clients.

**Unrated Securities Risk**<br>Because a Fund may purchase securities that are not rated by any rating organization, the sub-advisor, after assessing their credit quality, may internally assign ratings to certain of those securities, in categories of those similar to those of rating organizations. Investing in unrated securities involves the risk that the sub-advisor may not accurately evaluate the security's comparative credit

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rating. To the extent that a Fund invests in unrated securities, a Fund's success in achieving its investment objectives may depend more heavily on the sub-advisor's credit analysis than if a Fund invested exclusively in rated securities. Less public information is typically available about unrated securities or issuers. Some unrated securities may not have an active trading market or may be difficult to value, which means a Fund might have difficulty selling them promptly at an acceptable price. Unrated securities may also be subject to greater liquidity risk and price volatility.

**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 stated interest rate and face value at maturity, not its current market price. The market prices for such securities are not guaranteed and will fluctuate with changes in interest rates and the credit rating of the U.S. government. Additionally, circumstances could arise that would prevent the payment of interest or principal. This could result in losses to a Fund. Investments in securities issued by government-sponsored enterprises, such as Fannie Mae, Freddie Mac, FHLB, FFCB and GNMA, 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 FHLB or the FFCB; (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 a 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 enterprises 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. The maximum potential liabilities of the issuers of some securities issued by the U.S. government or government-sponsored enterprises that are held by a Fund may greatly exceed their current resources, including any legal right to support from the U.S. Treasury, and it is possible that these issuers may not have the funds to meet their payment obligations in the future.

**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 a 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 a Fund is holding fair-valued securities may receive fewer or more shares, or lower or higher redemption proceeds, than they would have received if 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 a Fund determines its NAV.

**Variable and Floating Rate Securities Risk**<br>The coupons on variable and floating rate securities in which a 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. Although the impact of interest rate changes on variable and floating rate investments is intended to be mitigated by the periodic interest rate reset of those securities, variable and floating rate securities 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. In addition, because of the interest rate adjustment feature, variable and floating rate securities provide a Fund with a certain degree of protection against increases in interest rates, but a Fund will participate in any declines in interest rates as well. Thus, investing in 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.

**Comparison of Investment Policies/Restrictions**

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If the proposed Reorganization occurs, the Target Fund will be managed pursuant to the fundamental and non-fundamental investment policies/restrictions of the Acquiring Fund. A "**fundamental**" investment policy/restriction is one that may not be changed without a shareholder vote. The below list includes certain non-fundamental investment policies/restrictions applicable to one or more of the Funds and is not necessarily comprehensive. The fundamental and non-fundamental investment policies/restrictions for the Funds generally are substantially similar, although there are a number of differences noted below. In addition, the Acquiring Fund has adopted the non-fundamental investment policy/ restriction set out below that the Target Fund has not. These differences are not expected to result in any changes to the management of the Target Fund. More detailed information about the Acquiring Fund's fundamental investment policies/restrictions is available in the Statement of Additional Information.

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|:---|:---|:---|:---|
| **Fundamental Investment Policies/Restrictions** | **Fundamental Investment Policies/Restrictions** | **Fundamental Investment Policies/Restrictions** | **Fundamental Investment Policies/Restrictions** |
| Policy/Restriction | &nbsp;&nbsp; Target Fund | &nbsp;&nbsp; Acquiring Fund | &nbsp;&nbsp; Differences |
| Real Estate. | &nbsp;&nbsp; The Fund will not purchase real estate directly, but may possess, hold, purchase and/or dispose of it in connection with managing or exercising its rights in respect of its investments. The Fund may, for clarity, (i) purchase interests in issuers which deal or invest in real estate, including limited partnership interests of limited partnerships that invest or deal in real estate, (ii) purchase securities which are secured by real estate or interests in real estate, including real estate mortgage loans, and (iii) acquire (by way of foreclosure or otherwise), hold and/or dispose of real estate that secured, or is otherwise related to, an investment of the Fund. (For purposes of this restriction, investments by the Fund in mortgage-backed securities and other securities representing interests in mortgage pools shall not constitute the purchase or sale of real estate.) | &nbsp;&nbsp; The Fund may not 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. | &nbsp;&nbsp; The Acquiring Fund states that it may not purchase or sell real estate limited partnerships, whereas the Target Fund does not.<br> The Target Fund also clarifies that it may possess, hold, and/or dispose of real estate in connection with managing or exercising its rights in respect of its investments including by acquiring (by way of foreclosure or otherwise), holding and/or disposing of real estate secured, or otherwise related to, an investment of the Target Fund. The Acquiring Fund does not include these clarifications. The Target Fund also clarifies that investments in mortgage-backed securities and other securities representing interests in mortgage pools shall not constitute the purchase or sale of real estate, whereas the Acquiring Fund does not explicitly state this point. |
| Commodities. | &nbsp;&nbsp; The Fund may purchase or sell commodities to the extent permitted by applicable law from time to time. | &nbsp;&nbsp; The Fund may not 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). | &nbsp;&nbsp; The Target Fund states that it may purchase or sell commodities to the extent permitted by applicable law from time to time; however, the Acquiring Fund is not restricted from investing in physical commodities acquired as a result of ownership of securities or other instruments, or the enumerated other instruments set forth in the policy/restriction. |
| Senior Securities. | &nbsp;&nbsp; The Fund may not issue any class of securities which is senior to the Fund's shares of beneficial interest, except to the extent the Fund is permitted to borrow money and except as otherwise consistent with applicable law from time to time. | &nbsp;&nbsp; The Fund may not 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. | &nbsp;&nbsp; No material differences. |
| Underwriting. | &nbsp;&nbsp; The Fund may not act as underwriter of securities of other issuers except to the extent that, in connection with the disposition of portfolio securities or in connection with the purchase of securities directly from the issuer thereof, it may be deemed to be an underwriter under certain federal securities laws. | &nbsp;&nbsp; The Fund may not 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. | &nbsp;&nbsp; No material differences. |

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|:---|:---|:---|:---|
| **Fundamental Investment Policies/Restrictions**  | **Fundamental Investment Policies/Restrictions**  | **Fundamental Investment Policies/Restrictions**  | **Fundamental Investment Policies/Restrictions**  |
| Loans. | &nbsp;&nbsp; The Fund may make loans, including to affiliated investment companies, except to the extent the Fund is prohibited from doing so by applicable law. The Fund may purchase loan participations or otherwise invest in loans or similar obligations, and may make loans directly to borrowers, itself or as part of a lending syndicate. The Fund may purchase debt obligations or other financial instruments in which the Fund may invest consistent with its investment policies, enter into repurchase agreements, or lend its portfolio securities. | &nbsp;&nbsp; The Fund may not 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 with respect to portfolio securities. | &nbsp;&nbsp; The Acquiring Fund states that it may lend a security or make a loan through the purchase of a portion of an issue of debt securities, whereas the Target Fund states that it may make loans directly to issuers, itself or as part of a lending syndicate. |
| Borrowing. | &nbsp;&nbsp; The Fund may borrow money to the extent permitted by applicable law from time to time. | &nbsp;&nbsp; The Fund may not 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 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. | &nbsp;&nbsp; The Acquiring Fund includes a clarification that it may lend portfolio securities as collateral, and that the purchase of sale of the enumerated instruments shall not constitute borrowing, whereas the Target Fund does not. |
| Diversification. | &nbsp;&nbsp; No such fundamental policy. The Fund, however, is classified as a diversified fund under the 1940 Act. | &nbsp;&nbsp; The Fund may not 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. | &nbsp;&nbsp; No material differences. |
| Industry Concentration. | &nbsp;&nbsp; The Fund may not purchase any security if as a result 25% or more of the Fund's total assets (taken at current value) would be invested in securities of issuers in a single industry (for purposes of this restriction, (i) bank loans and loan participations will be considered investments in the industry of the underlying borrower, (ii) investment companies are not considered to constitute an industry, and (iii) derivatives counterparties are not considered to be part of any industry). | &nbsp;&nbsp; The Fund may not 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 or guaranteed by the U.S. Government, its agencies or instrumentalities; and (ii) tax-exempt securities issued by municipalities or their agencies and authorities. | &nbsp;&nbsp; The Target Fund policy provides that bank loans and loan participations will be considered investments in the industry of the underlying borrower, investment companies do not constitute an industry, and derivatives counterparties do not constitute an industry, whereas the Acquiring Fund does not. Conversely, the Acquiring Fund policy provides that the limitation does not apply to U.S. Government, agency or instrumentality obligations, or tax-exempt securities issued by municipalities or their agencies or authorities, whereas the Target Fund does not. |
| **Non-Fundamental Investment Policies/Restrictions** | **Non-Fundamental Investment Policies/Restrictions** | **Non-Fundamental Investment Policies/Restrictions** | **Non-Fundamental Investment Policies/Restrictions** |
|  **Policy/Restriction** | &nbsp;&nbsp; **Target Fund** | **Acquiring Fund** | **Differences** |
| Investing in Illiquid Securities. | &nbsp;&nbsp; The Fund will not invest more than 15% of its net assets in illiquid investments. | &nbsp;&nbsp; The Fund may not invest more than 15% of its net assets in illiquid securities, including | &nbsp;&nbsp; No material differences. |

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|:---|:---|:---|:---|
| **Fundamental Investment Policies/Restrictions**  | **Fundamental Investment Policies/Restrictions**  | **Fundamental Investment Policies/Restrictions**  | **Fundamental Investment Policies/Restrictions**  |
|  |  | &nbsp;&nbsp; time deposits and repurchase agreements that mature in more than seven days. |  |
| Purchasing Securities on Margin. | &nbsp;&nbsp; No such policy. | &nbsp;&nbsp; The Fund may not purchase securities on margin, except that(1) the Fund may obtain such short term credits 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. | &nbsp;&nbsp; This policy applies to the Acquiring Fund, but not the Target Fund. |

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**Target Fund Interpretations of Fundamental and Non-Fundamental Investment Policies/Restrictions**

For purposes of applying the terms of the Target Fund's fundamental policy with respect to concentration, the investment adviser will make reasonable determinations as to the appropriate industry classification to assign to each issuer of securities in which the Target Fund invests. As a general matter, the Target Fund considers an industry to be a group of companies whose principal activities, products or services offered give them a similar economic risk profile vis à vis issuers active in other sectors of the economy. The definition of what constitutes a particular industry is therefore an evolving one, particularly for issuers in industries that are new or are undergoing rapid development. Some issuers could reasonably fall within more than one industry category. For example, some companies that sell goods over the Internet (including issuers of securities in which the Target Fund may invest) were initially classified as Internet companies, but over time have evolved into the economic risk profiles of retail companies. The investment adviser will use its reasonable efforts to assign each issuer to the category which it believes is most appropriate. Further, the Target Fund takes the position that mortgage-backed securities and asset-backed securities, whether government-issued or privately issued, do not represent interests in any particular industry or group of industries, and therefore the 25% concentration restrictions noted above do not apply to such securities, and the Target Fund has applied its industry concentration restriction in this manner.

For purposes of the Target Fund's policies (including the fundamental policies discussed above), any actions taken or omitted or investments made in reliance on, or in accordance with, exemptive relief, no action relief, interpretive guidance or other regulatory or governmental action or guidance, shall be considered to have been taken, made, or omitted in accordance with applicable law.

All percentage limitations and requirements (including those set forth in the fundamental policies discussed above) as to investments will apply only at the time of an investment to which the limitation or requirement is applicable and shall not be considered violated unless an excess or deficiency occurs or exists immediately after and as a result of such investment. Accordingly, any later increase or decrease resulting from a change in values, net assets or other circumstances will not be considered in determining whether any investment complies with the Target Fund's limitation or requirement. Such percentage limitations and requirements do not apply to the asset coverage test set forth in Section 18(f)(1) of the 1940 Act.

**Acquiring Fund Interpretations of Fundamental and Non-Fundamental Investment Policies/Restrictions** 

Fundamental Investment Policies/Restrictions: 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 above, securities loans will not be made if, as a result, the aggregate amount of all outstanding securities loans by the Acquiring Fund exceeds 33¹/3 % of its total assets (including the market value of collateral received).

For purposes of the Acquiring Fund's policy relating to issuing senior securities set forth above, "senior securities" are defined as Acquiring Fund obligations that have a priority over the Acquiring Fund's shares with respect to the payment of dividends or the distribution of Acquiring Fund assets. The Investment Company Act prohibits the Acquiring Fund from issuing any class of senior securities or selling any senior securities of which it is the issuer, except that the Acquiring 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 Acquiring Fund (not including borrowings for temporary purposes in an amount not exceeding 5% of the value of the Acquiring Fund's total assets). In the event that such asset coverage falls below this percentage, the Acquiring 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%.

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Consistent with guidance issued by the SEC and its staff, the requisite asset coverage may vary among different types of instruments. The policy 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 Acquiring Fund's industry concentration policy set forth above, American Beacon may analyze the characteristics of a particular issuer and instrument and may assign an industry classification consistent with those characteristics. American Beacon may, but need not, consider industry classifications provided by third parties, and the classifications applied to Acquiring 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. American Beacon 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 Acquiring Fund's assets will be invested in securities issued by any one foreign government or supranational organization. The Acquiring Fund might invest in certain securities issued by companies in a particular industry whose obligations are guaranteed by a foreign government. American Beacon could consider such a company to be within the particular industry and, therefore, the Acquiring 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.

Non-Fundamental Investment Policies/Restrictions: 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 Prospectus, the other investment policies described in this SAI are not fundamental and may be changed by approval of the Trustees.

**Comparative Performance Information**

The Acquiring Fund is newly organized and has no assets, operating history or performance information of its own as of the date of this Proxy Statement. After the proposed Reorganization, which is subject to shareholder approval, the Target Fund will be the accounting and performance survivor. This means that the Acquiring Fund will assume and publish the operating history and performance record of the Target Fund, even after the Target Fund's liquidation. The Acquiring Fund's Y Class shares will adopt the performance history of the Target Fund's I Class Shares, and the Acquiring Fund's Investor Class shares will adopt the performance history of the Target Fund's N Class Shares.

The following performance information provides some indication of the risks of investing in the Target Fund. The bar chart shows the performance of the Target Fund's Class I shares for each full calendar year since the Target Fund's inception. The table below shows how the average annual total returns of the Target Fund's shares for the periods shown compare to those of a broad-based securities market index. The Target Fund's past performance (before and after taxes) is not necessarily an indication of how the Target Fund will perform in the future. Absent any applicable fee waivers and/or expense limitations (which have applied to the Target Fund since inception), performance would have been lower. Updated information on the Target Fund's investment results can be obtained at no charge by calling 877-DLine11 (877-354-6311) or by visiting the Target Fund's website at www.doubleline.com.

---

| | |
|:---|:---|
| **Calendar year total returns for Class I Shares.** Year Ended 12/31 | **Calendar year total returns for Class I Shares.** Year Ended 12/31 |
| ![](pr2681img001.jpg) | &nbsp;&nbsp;&nbsp; **Highest Quarterly Return:**<br>**8.70%** 2nd Quarter 2020<br>01/01/2017 through 12/31/2024<br> **Lowest Quarterly Return:**<br>**-7.21%** 1st Quarter 2020<br>01/01/2017 through 12/31/2024 |
| **The year-to-date total return for the Target Fund's Class I Shares as of June 30, 2025 was 4.30%.** |  |

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---

| | | | |
|:---|:---|:---|:---|
| **DoubleLine Select Income Fund – Average Annual Total Returns (As of December 31, 2024)** | **DoubleLine Select Income Fund – Average Annual Total Returns (As of December 31, 2024)** | **DoubleLine Select Income Fund – Average Annual Total Returns (As of December 31, 2024)** | **DoubleLine Select Income Fund – Average Annual Total Returns (As of December 31, 2024)** |
|  | **1 Year** | **5 Years** | **Since** **Inception** **(April 1, 2016)** |
| **Class I** | **Class I** | **Class I** | **Class I** |
| &nbsp;&nbsp;&nbsp; Return Before Taxes | 4.41% | 1.21% | 2.46% |
| &nbsp;&nbsp;&nbsp; Returns After Taxes on Distributions | 2.68% | -0.16% | 1.10% |
| &nbsp;&nbsp;&nbsp; Returns After Taxes on Distributions and Sale of Fund Shares | 2.59% | 0.36% | 1.30% |

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| | | | |
|:---|:---|:---|:---|
| **DoubleLine Select Income Fund – Average Annual Total Returns (As of December 31, 2024)** | **DoubleLine Select Income Fund – Average Annual Total Returns (As of December 31, 2024)** | **DoubleLine Select Income Fund – Average Annual Total Returns (As of December 31, 2024)** | **DoubleLine Select Income Fund – Average Annual Total Returns (As of December 31, 2024)** |
|  | **1 Year** | **5 Years** | **Since** **Inception** **(April 1, 2016)** |
| **Class N** | **Class N** | **Class N** | **Class N** |
| &nbsp;&nbsp;&nbsp; Return Before Taxes | 4.14% | 0.96% | 2.20% |
| **Bloomberg U.S. Aggregate Bond Index** | **Bloomberg U.S. Aggregate Bond Index** | **Bloomberg U.S. Aggregate Bond Index** | **Bloomberg U.S. Aggregate Bond Index** |
| *(reflects no deduction for fees, expenses or taxes)* | 1.25% | -0.33% | 1.14% |

---

The Target Fund's after-tax returns as shown in the above table are calculated using the historical highest applicable individual U.S. federal marginal income tax rates for the period and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your tax situation and may differ from those shown. If you own shares of the Target Fund in a tax-advantaged account, such as a 401(k) plan or an individual retirement account (IRA), after-tax returns shown are not relevant to your investment. The "Return After Taxes on Distributions and Sale of Fund Shares" may be higher than other return figures because when a capital loss occurs upon the redemption of shares of the Target Fund, a tax deduction is provided that may benefit the investor. After-tax returns are for Class I shares only. After-tax returns for other classes may vary. The Bloomberg U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. This index covers the U.S. investment-grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis. It is not possible to invest directly in an index.

**Capitalization**

The following table shows the capitalization of the Target Fund as of August 31, 2025, and the Acquiring Fund on a pro forma combined basis as of August 31, 2025, after giving effect to the proposed Reorganization. The table is for informational purposes only. The capitalization of the Funds is likely to be different on the Closing Date due to purchase and redemption activity in the Target Fund. The Acquiring Fund is newly organized and did not have any operations of its own as of the date of this Proxy Statement

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| | | | |
|:---|:---|:---|:---|
|  | **Net Asset** | **Net Asset Value Per Share** | **Shares Outstanding** |
| DoubleLine Select Income Fund – Class I Shares | $340359330 | $9.51 | 35777463 |
| Adjustments | $0 | $0 | 0 |
| Pro forma American Beacon DoubleLine Select Income Fund – Y Class shares (assuming the proposed Reorganization is approved) | $340359330 | $9.51 | 35777463 |
| DoubleLine Select Income Fund – Class N Shares | $6707785 | $9.52 | 704418 |
| Adjustments | $0 | $0 | 0 |
| Pro forma American Beacon DoubleLine Select Income Fund – Investor Class shares (assuming the proposed Reorganization is approved) | $6707785 | $9.52 | 704418 |

---

**After careful consideration, the Target Trust Board unanimously approved the Reorganization Plan with respect to the DoubleLine Select Income Fund. Accordingly, the Target Trust Board has submitted the Reorganization Plan for approval by this Fund's shareholders. The Target Trust Board recommends that you vote "FOR" Proposal 2.** 

**ADDITIONAL INFORMATION ABOUT THE REORGANIZATIONS**

**Terms of the Reorganization Plans**

The terms and conditions under which each of the Reorganizations would be completed are contained in the corresponding Reorganization Plan. The following summary thereof is qualified in its entirety by reference to the Reorganization Plan, a copy of each form of which is attached to this Proxy Statement as Appendix A.

Each Reorganization will involve a Target Fund transferring all of its assets to the corresponding Acquiring Fund in exchange solely for Acquiring Fund shares and the Acquiring Fund's assumption of all the Target Fund's liabilities. On or as soon as is reasonably practicable after the applicable Closing Date, each Target Fund will distribute the Acquiring Fund shares it receives in its Reorganization to its shareholders. The Board of the Target Trust has approved the use of each Acquiring Fund's valuation policies for purposes of calculating each Target Fund's portfolio valuation on the Closing Date and to effect each Target Fund's Reorganization on the Closing Date. Accordingly, for purposes of determining the total net asset value of the Acquisition Shares to be issued in the Reorganization, the assets of the Target Fund will be valued using the Acquiring Fund's valuation policies, which are similar to, although different from, those of the Target Fund. For example, each Target Fund's valuation policies value certain fixed income obligations, including bank loans, based on evaluations provided by pricing vendors that seek to approximate the mid-point of the bid-ask spread for the investment, while each Acquiring Fund's valuation policies value those obligations based on evaluations that seek to approximate the bid for the relevant investment. Accordingly, the total net asset value of the Acquisition Shares issued in the Reorganization, which will be determined using the Acquiring Fund's valuation policies, will be less than it would have been if each Target Fund's valuation policies were used to value the portfolio securities of the Target Fund at the time the applicable Reorganization is effected. Each Target Fund shareholder will receive the same percentage of Acquisition Shares as the Target Fund shareholder's percentage ownership of the relevant class of shares of the Target Fund immediately before the Reorganization.

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Pursuant to the transfer, each Shareholder's account shall be credited with the respective pro rata number of full and fractional Acquiring Fund shares due to the shareholder, by class. After such distribution, the Target Trust will take all necessary steps under its Agreement and Declaration of Trust and Delaware and any other applicable law to effect a complete termination of each Target Fund.

Each Reorganization may be terminated at any time at or before the applicable Closing Date by (1) either the Target Trust or the Acquiring Trust in the event of the other Trust's material breach of any representation, warranty, agreement or covenant contained in the Reorganization Plan to be performed at or before the applicable Closing Date, (b) if a condition to a Trust's obligations has not been met and it reasonably appears that that condition will not or cannot be met, (c) if a governmental body issues an order, decree, or ruling having the effect of permanently enjoining, restraining, or otherwise prohibiting consummation of the Reorganization, or (d) if the Reorganizations have not occurred on or before the date set forth in the Reorganization Plan, or another date to which the Trusts agree; or (2) by the Trusts' mutual agreement.

The consummation of each Reorganization also is subject to various conditions, including approval of the proposed Reorganizations by the applicable Target Fund's shareholders, completion of all filings with, and receipt of all necessary approvals from, the SEC, and delivery of legal opinions, including a legal opinion regarding the federal income tax consequences of the proposed Reorganizations. Subject to the satisfaction of all applicable conditions, including conditions specified in the Reorganization Plan as well as conditions to the Reorganizations discussed above, each Reorganization will take place immediately after the close of business on the Closing Date.

The Target Trust Board, including the Trustees who are not "interested persons" (as defined in the 1940 Act) of either Trust (the "Independent Trustees"), has determined, with respect to each Target Fund and each Reorganization, that the interests of its existing shareholders will not be diluted as a result of each proposed Reorganization and that participation in the proposed Reorganization is in the best interests of each Target Fund. Similarly, the Acquiring Trust Board, including its Independent Trustees, has determined, with respect to each Acquiring Fund, that the interests of its shareholders will not be diluted as a result of the proposed Reorganization and that participation in the proposed Reorganization is in the best interests of the Acquiring Fund.

DoubleLine Capital or its affiliates and American Beacon or its affiliates have agreed to bear the following direct costs and expenses related to the proposed Reorganizations equally: (1) costs, including legal and accounting fees, associated with preparing, reviewing, and filing the Agreement and Target Funds' proxy materials; (2) expenses incurred in connection with printing and mailing the Target Funds' proxy materials and the solicitation of proxies for the special meeting of Target Fund shareholders; (3) transfer agent and custodian conversion costs; (4) service provider termination fees for the Target Funds; (5) costs of preparing and filing the Acquiring Fund's registration statement; (6) the costs of preparing and filing the Target Fund's prospectus supplement; and (7) costs associated with any meeting of the Target Trust Board or the Acquiring Trust Board. Each Target Fund will bear, as applicable, (i) the costs of selling portfolio securities necessary to effect the Reorganizations in instances where the Target Fund holds securities in a country that does not permit the in-kind transfer of securities; and (ii) transfer or stamp duties, such as those typically imposed in certain non-U.S. markets in connection with the transfer of portfolio securities to the Acquiring Fund. Each Acquiring Fund will bear, as applicable, the costs of buying portfolio securities necessary to effect the Reorganizations in instances where the Target Fund holds securities in a country that does not permit the in-kind transfer of securities.

Approval of the Reorganization Plan with respect to a Target Fund covered thereby will require a "majority vote" of its shareholders as that term is defined in the 1940 Act. Specifically, the approval of the Reorganization Plan will require the affirmative vote of the lesser of (i) 67% or more of the voting securities of the Fund present at a meeting, if the holders of more than 50% of its outstanding voting securities are present or represented by proxy, or (ii) more than 50% of its outstanding voting securities. If a Reorganization Plan is not approved with respect to a Target Fund by its shareholders or its Reorganization is not consummated for any other reason, the Target Trust Board will consider other possible courses of action. Please see "Voting Information" below for more information.

In connection with the Reorganizations, the Manager and, to the extent applicable, DoubleLine Capital, have agreed to use all commercially reasonable efforts to ensure that the Reorganizations comply with the safe harbor provisions of Section 15(f) of the 1940 Act. Section 15(f) requires, among other things, that during the three-year period immediately following the Reorganizations, at least 75% of the members of the Acquiring Trust Board must not be "interested persons" of American Beacon or DoubleLine Capital within the meaning of the 1940 Act. Section 15(f) also requires that no "unfair burden" be imposed on an Acquiring Fund as a result of the Reorganization or any express or implied terms, conditions or understandings applicable thereto.

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**Description of the Securities to Be Issued**

At the time of the Reorganizations, shareholders of each Target Fund automatically will become shareholders of the corresponding Acquiring Fund, by receiving shares of the class of the Acquiring Fund in proportion to the shares of the Target Fund that the shareholder held immediately prior to the Reorganizations as set forth below:

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| | | |
|:---|:---|:---|
|  **Target Fund** |  | **Acquiring Fund** |
| DoubleLine Floating Rate Fund | → | American Beacon DoubleLine Floating Rate Income Fund |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I Shares | → | Y Class Shares |
| &nbsp;&nbsp;&nbsp;&nbsp; Class N Shares | → | Investor Class Shares |
| DoubleLine Select Income Fund | → | American Beacon DoubleLine Select Income Fund |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I Shares | → | Y Class Shares |
| &nbsp;&nbsp;&nbsp;&nbsp; Class N Shares | → | Investor Class Shares |

---

Shares will be held in book entry form only; paper certificates will not be issued. No sales charges will be imposed in connection with the receipt of Acquiring Fund shares by shareholders of a Target Fund pursuant to a Reorganization.

The Funds have similar, but not identical, distribution and purchase procedures, exchange rights and redemption procedures. The Target Fund has a minimum initial investment of $100,000 for Class I Shares for regular accounts or $5,000 for IRA/HSA accounts and $2,000 for Class N Shares for regular accounts or $500 for IRA/HSA accounts with a $100 minimum subsequent Investment for both Class I and Class N Shares. For the Acquiring Fund, the Y Class shares have a $100,000 minimum initial investment amount, and the Investor Class shares have a $2,500 minimum initial investment amount. These minimum investment requirements will be waived for all Target Fund shareholders in connection with the Reorganization, and Target Fund shareholders will be able to continue to purchase Y Class or Investor Class shares of the Acquiring Fund without meeting the respective prior minimum initial investment amounts. Target Fund shareholders will not incur any sales loads or similar transaction charges as a result of the Reorganizations.

**Board Considerations**

At a meeting of the Target Trust Board held on August 19, 2025 (the "**Target Trust Meeting**"), the Target Trust Board considered the Reorganizations, with the advice and assistance of fund counsel and independent legal counsel to the Target Trust's Independent Trustees. In advance of the Target Trust Meeting, DoubleLine Capital and American Beacon provided background materials, analyses and other information to the Target Trust Board regarding, among other things, the information discussed below, including responses to specific requests by the Target Trust Board. In connection with the Target Trust Meeting, the Target Trust Board received a presentation from representatives of DoubleLine Capital and reviewed the terms of the Reorganization Plans, noting that the Reorganizations would be submitted to the Target Funds' shareholders for approval. Representatives of DoubleLine Capital also responded to questions raised by the Target Trust Board in connection with the Target Trust Meeting. Representatives of American Beacon also participated in a portion of the Target Trust Meeting, during which the American Beacon representatives described American Beacon's business and capabilities, discussed the proposed transactions and responded to questions from the Target Trust Board. After the Target Trust Board reviewed, evaluated and discussed the materials, analyses and information provided to it that the Target Trust Board considered relevant to its deliberations, the Target Trust Board, including the Target Trust's Independent Trustees, unanimously approved the Reorganizations. The Target Trust Board, including the Target Trust's Independent Trustees, also unanimously determined that participation by the Target Funds in the Reorganizations would be in the best interests of the Target Funds and that the interests of existing shareholders of the Target Funds would not be diluted as a result of the Reorganizations. In making these determinations, the Target Trust Board, including all of the Target Trust's Independent Trustees, considered a number of factors, including the potential benefits and costs of the Reorganizations to the shareholders of the Target Funds. In its deliberations, the Target Trust Board did not identify any particular factor or single piece of information that was all-important, controlling or determinative of its decision, but considered all of the factors together, and individual trustees may have attributed different weights to various factors. These considerations included the following:

• Each
 Acquiring Fund is expected to have an identical or essentially identical investment objective, and substantially similar
 investment strategies, restrictions and principal risks, as its corresponding Target Fund immediately prior to the Reorganizations,
 noting that at the Target Trust Meeting, the Target Trust Board approved changes to the Target Select Income
 Fund's name and 80% investment policy, which were not expected to result in a significant change in how the Target
 Select Income Fund is managed.

• The
 Reorganizations are not expected or intended to result in any changes to the day-to-day investment management of
 the Target Funds, as  DoubleLine Capital already serves as the sub-adviser to the Acquiring Floating Rate Income Fund and
 will serve as the sub-adviser to both the Acquiring Funds following the Reorganizations. It is expected that the existing
 portfolio management teams at DoubleLine Capital for each Target Fund will also serve as portfolio managers for
 the corresponding Acquiring Fund.

• Each
 Acquiring Fund is expected to have the same management fee as its corresponding Target Fund.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• For
 at least a two year period following the applicable Closing Date, the net expense ratio (after applicable expense limitations
 and/or fee waivers) for each Acquiring Fund's Y Class shares immediately after the Reorganizations are expected
 to be the same as the net expense ratio (after applicable expense limitations and/or fee waivers) for the corresponding
 Target Fund's I Class shares, and the net expense ratio (after applicable expense limitations and/or fee waivers)
 for each Acquiring Fund's Investor Class shares immediately after the Reorganizations are expected to be the same
 as the net expense ratio (after applicable expense limitations and/or fee waivers) of the corresponding Target Fund's
 N Class shares. American Beacon has agreed to cap each Acquiring Fund's expenses at a level at or below the corresponding Target Fund's expenses for
two years following the Closing Date of the applicable Target Fund.

• American
 Beacon has agreed to bear the costs and expenses of the necessary shareholder meeting, the materials that will
 be prepared and sent to shareholders of the Target Funds, and the solicitation of proxies for the meeting of shareholders.
 The Target Funds will bear any portfolio-related expenses, such as transaction costs.

• The
 Reorganizations are expected to expand the distribution channels of the Target Funds providing the Target Funds with greater access to various intermediary channels, which may provide opportunities to increase the assets of the Target Funds.

• The
 Reorganizations are expected to allow the Target Funds to grow to scale, potentially resulting in reduced operating costs over
 the long term.

• The
 Reorganizations are not expected to result in any material changes to the availability of the Target Funds on existing
 distribution platforms.

• The
 Reorganizations are intended to be tax-free for  U.S. federal income tax purposes for the Target Funds and their shareholders.

• American
 Beacon has extensive experience in connection with similar fund adoptions and American Beacon has greater distribution
 reach that  DoubleLine Capital believes will benefit the Target Funds and their shareholders.

**Federal Income Tax Consequences of the Reorganization**

The Target Trust believes that each Target Fund has qualified for treatment as a regulated investment company under Part I of Subchapter M of Chapter 1 of Subtitle A of the Code ("**Subchapter M**") since its inception. Accordingly, the Target Trust believes each Target Fund has been, and expects each Target Fund to continue through the applicable Closing Date, to be relieved of any federal income tax liability on its taxable income and net gains it distributes to shareholders to the extent provided for in Subchapter M.

The Reorganizations are intended to qualify for federal income tax purposes as tax-free reorganizations under section 368(a) of the Code. As a condition to each Closing, the Target Trust and the Acquiring Trust will receive an opinion of the Acquiring Trust's counsel substantially to the effect that -- based on certain assumptions and conditioned on the representations set forth in the applicable Reorganization Plan (and, if such counsel requests, in separate letters from the Target Trust and the Acquiring Trust) being true and complete at the time of the Closing and the Reorganization being consummated in accordance with the Plan (without the waiver or modification of any terms or conditions thereof and without taking into account any amendment thereof that counsel has not approved) -- the Reorganization will qualify as such a reorganization and each Fund will be "a party to a reorganization" (within the meaning of section 368(b) of the Code) and that, accordingly, for federal income tax purposes

• The
 Target Fund will recognize no gain or loss on the transfer of its assets to the Acquiring Fund in exchange solely for shares
 of the Acquiring Fund and the Acquiring Fund's assumption of the Target Fund's liabilities or on the distribution of
 those shares to the Target Fund's shareholders in exchange for their Target Fund;

• A
 shareholder will recognize no gain or loss on the exchange of all of its Target Fund shares solely for  shares of the Acquiring
 Fund pursuant to the Reorganization;

• A
 shareholder's aggregate tax basis in the Acquiring Fund shares it receives pursuant to the Reorganization will be the same
 as the aggregate tax basis in its Target Fund shares it actually or constructively surrenders in exchange for those Acquiring
 Fund shares, and its holding period for those Acquiring Fund shares will include, in each instance, its holding period
 for those Target Fund shares, provided the shareholder holds them as capital assets as of the time of the Closing;

• The
 Acquiring Fund will recognize no gain or loss on its receipt of the Target Fund's assets in exchange solely for the Acquiring
 Fund shares and the Acquiring Fund's assumption of the Target Fund's liabilities; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• The
 Acquiring Fund's basis in each transferred asset will be the same as the corresponding Target Fund's basis therein immediately
 before the Reorganization, and the Acquiring Fund's holding period for each such asset will include the Target
 Fund's holding period therefor (except where the Acquiring Fund's investment activities have the effect of reducing
 or eliminating an asset's holding period).

Notwithstanding the above, the opinion of counsel may state that no opinion is expressed as to the effect of a Reorganization on the Funds or any shareholder with respect to any asset as to which any unrealized gain or loss is required to be recognized for federal income tax purposes at the end of the taxable year or on the termination or transfer thereof under a mark-to-market system of accounting.

Opinions of counsel are not binding upon the Internal Revenue Service ("**IRS**") or the courts. If a Reorganization is consummated but does not qualify as a tax-free reorganization under the Code, a Target Fund would recognize gain or loss on the transfer of its assets to the corresponding Acquiring Fund and each shareholder of the Target Fund would recognize a taxable gain or loss equal to the difference between its tax basis in the Target Fund shares and the fair market value of the shares of the Acquiring Fund it receives.

Significant holders of shares of each Target Fund (generally, those holders that own at least 1% of the total outstanding stock (by vote or value) of a Target Fund or that own Target Fund securities with an aggregate basis of $1 million or more immediately prior to the Reorganization) generally will be required to attach a statement to their U.S. federal income tax return for the year in which the Reorganization occurs that contains the information listed in U.S. Treasury Regulation 1.368-3(b).

While the Reorganizations are expected to be tax-free for federal income tax purposes, in the case of the Reorganization involving the DoubleLine Floating Rate Fund Target Fund shareholders will receive income and recognize gains for federal income tax purposes (except in the case of tax-advantaged shareholders, such as 401(k) plans or individual retirement accounts) in the event that the Target Fund must make a distribution to its shareholders by the Closing Date of all undistributed net income and net capital gains, including net capital gains realized by the Target Fund in connection with changes made to align its portfolio with that of the Acquiring Fund prior to the Reorganization.

***Tracking Your Basis and Holding Period.*** After a Reorganization, you will continue to be responsible for tracking the adjusted tax basis in and holding period of your Acquiring Fund shares for federal income tax purposes. Any basis determination method you elected with respect to Target Fund shares you acquired will continue to be used by the corresponding Acquiring Fund after the Reorganization for the Acquiring Fund shares exchanged for those Target Fund shares in the Reorganization ("**Covered Exchange** **Shares**"). If you want to use any acceptable method for basis determination other than the average basis method, which will be each Acquiring Fund's default method, with respect to any Acquiring Fund shares you acquire after the Reorganization ("**Covered** **AB Shares**" and, collectively with Covered Exchange Shares, "**Covered Shares**"), or want to change your election with respect to Covered Exchange Shares, you will have to elect to do so in writing (which may be electronic). Any basis determination method for Covered Shares may not be changed with respect to a redemption thereof after the settlement date of the redemption.

Each Acquiring Fund (or its administrative agent) is required to report to the IRS and furnish to its shareholders the basis information for Covered Shares. As a result, an Acquiring Fund is required to report the gross proceeds from the redemption of its shares and, for Covered Shares, is also required to report the basis information and indicate whether they had a short-term (one year or less) or long-term (more than one year) holding period. Before making any redemptions, you should consult with your tax adviser to determine the best IRS-accepted basis determination method for your tax situation and to obtain more information about how the basis reporting law applies to you.

**Form of Organization and Rights of Shareholders of the Funds**

The rights of shareholders of the Acquiring Funds are substantially similar to the rights of shareholders of the Target Funds. The Target Trust is organized as a Delaware statutory trust, whereas the Acquiring Trust is organized as a Massachusetts business trust. Each Trust's operations are governed by its Declaration of Trust and By-laws and applicable Delaware or Massachusetts law. The operations of each Trust are also subject to the provisions of the 1940 Act and the rules and regulations thereunder. The chart below describes some of the differences between your rights as a Target Fund shareholder and your rights as an Acquiring Fund shareholder.

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| | | |
|:---|:---|:---|
| **Category** | **Target Funds** | **Acquiring Funds** |
| Par Value | &nbsp;&nbsp; Each share shall have no par value. | &nbsp;&nbsp; Each share may be issued with or without par value, as the Trustees have determined. |
| Preemptive Rights | &nbsp;&nbsp; None. | &nbsp;&nbsp; None. |
| Preference | &nbsp;&nbsp; None, except to the extent that such priorities or preference are established with respect to one or more classes of shares consistent with applicable | &nbsp;&nbsp; None. |

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| | | |
|:---|:---|:---|
| **Category** | **Target Funds** | **Acquiring Funds** |
|  | &nbsp;&nbsp; law and any rule or order of the SEC. |  |
| Appraisal Rights | &nbsp;&nbsp; None. | &nbsp;&nbsp; None. |
| Conversion Rights | &nbsp;&nbsp; None. | &nbsp;&nbsp; None. |
| Exchange Rights (not including the right to exchange among Funds or classes of a Fund) | &nbsp;&nbsp; None. | &nbsp;&nbsp; None. |
| Shareholder Rights | &nbsp;&nbsp; Shares shall have such special or relative rights and privileges as the Trustees may determine. No rights to title in trust property, to call for accounting treatment as a partner. | &nbsp;&nbsp; No rights to title in trust property, to call for any partition, division or accounting treatment as a partner, or rights, privileges, claims or remedies under contracts entered into by the Trust. |
| Personal Liability of Shareholders | &nbsp;&nbsp; Each shareholder of the Target Trust and of each Target Fund shall not be personally liable in tort, contract or otherwise for the debts, liabilities, obligations and expenses incurred by, contracted for, or otherwise existing with respect to, the Target Trust or by or on behalf of any Target Fund. The Trustees shall have no power to bind any shareholder personally or to call upon any shareholder for the payment of any sum of money or assessment whatsoever other than such as the shareholder may at any time personally agree to pay by way of subscription for any shares or otherwise. Every note, bond, contract or other undertaking issued by or on behalf of the Target Trust or the Target Trust's trustees relating to the Target Trust or to a Target Fund may include a recitation limiting the obligation represented thereby to the Target Trust or to one or more series of the Target Trust and its or their assets (but the omission of such a recitation shall not operate to bind any shareholder or trustee of the Target Trust). All persons extending credit to, contracting with or having any claim against the Target Trust or Target Fund or class thereof shall look only to the assets of the Target Trust or Target Fund, and shareholders shall not be personally liable therefor. The Target Trust is required to indemnify shareholders and former shareholders against losses and expenses incurred in connection with proceedings relating to them having been a shareholder, and not because of their acts or omissions. | &nbsp;&nbsp; No Shareholder of the Acquiring Trust or any series shall be personally liable for the debts, liabilities, obligations and expenses incurred by, contracted for, or otherwise existing with respect to, the Acquiring Trust or by or on behalf of any series. None of the Acquiring Trust, the Trustees or any officer, employee or agent of the Acquiring Trust shall have any power to bind any shareholder personally or to call upon any shareholder for the payment of any sum of money or assessment whatsoever other than such as the shareholder may at any time personally agree to pay by way of subscription for any shares or otherwise. Every note, bond, contract or other undertaking issued by or on behalf of the Trust or the Trustees relating to the Trust shall include a recitation limiting the obligation represented thereby to the Trust and its assets (but the omission of such a recitation shall not operate to bind any Shareholder). The Acquiring Trust is required to indemnify shareholders and former shareholders against losses and expenses incurred in connection with proceedings relating to them having been a shareholder, and not because of their acts or omissions. |
| Annual Meetings | &nbsp;&nbsp; No annual meetings are provided for. | &nbsp;&nbsp; No annual meetings unless required by law. |
| Shareholder Right to Call Meeting of Shareholders | &nbsp;&nbsp; Shall be called upon request of shareholders owning at least one-tenth of the total combined votes of all shares of the series and classes entitled to vote. | &nbsp;&nbsp; Shall be called upon request of shareholders owning at least 25% of Net Asset Value (in dollars) of the Shares entitled to vote. |
| Notice of Meetings | &nbsp;&nbsp; At least 10, but no more than 90, days before the meeting. | &nbsp;&nbsp; Provided personally, by mail or by other written or electronic communication at least 15 days prior to the meeting. |
| Record Date for Meetings | &nbsp;&nbsp; Trustees may fix in advance a date not more than 90 days before the meeting. | &nbsp;&nbsp; Trustees may fix in advance a date not more than 120 days before the meeting. |
| Election of Trustees | &nbsp;&nbsp; A plurality of the votes cast in person or by proxy shall elect a Trustee. There shall be no cumulative voting. In case any vacancy of a Trustee position shall exist for any reason, including, an increase in the number of Trustees, the remaining Trustees shall fill such vacancy by appointing such other person as they in their discretion shall see fit, consistent with the limitations under the 1940 Act. The power of appointment is subject to the provisions of Section 16(a) of the 1940 Act. | &nbsp;&nbsp; A plurality of the votes cast in person or by proxy shall elect a Trustee. There shall be no cumulative voting. In case any vacancy of a Trustee position shall exist for any reason, including, an increase in the number of Trustees authorized, the remaining Trustees shall fill such vacancy by appointing such other person as they in their discretion shall see fit, consistent with the limitations under the 1940 Act. The power of appointment is subject to the provisions of Section 16(a) of the 1940 Act. |
| Vote Required for Adjournment of Meetings | &nbsp;&nbsp; A majority of the votes cast by shareholders | &nbsp;&nbsp; The chair of the meeting or a majority of the votes  |

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| | | |
|:---|:---|:---|
| **Category** | **Target Funds** | **Acquiring Funds** |
|  | &nbsp;&nbsp; present in person or by proxy | &nbsp;&nbsp; cast by shareholders present in person or by proxy. |
| Removal of Trustees by Shareholders | &nbsp;&nbsp; May be removed with or without cause at any meeting of shareholders of the Target Trust by a vote of shareholders owning at least a majority of the outstanding shares of the Target Trust. | &nbsp;&nbsp; May be removed, with or without cause, at a shareholder meeting by a vote of shareholders owning at least two-thirds of the outstanding shares of the Acquiring Trust. |
| Shareholder Derivative Lawsuits | &nbsp;&nbsp; In addition to the requirements set forth in Section 3816 of Chapter 38 of Title 12 of the Delaware Code entitled "Treatment of Delaware Statutory Trusts," as it may be amended from time to time (the "Delaware Act"), a shareholder may bring derivative action on behalf of the Target Trust only if the shareholder or shareholders first make a pre-suit demand upon the trustees of the Target Trust to bring the subject action unless an effort to cause the trustees to bring such action is excused. A demand on the trustees shall only be excused if a majority of the board of trustees of the Target Trust, or a majority of any committee established to consider the merits of such action, has a personal financial interest in the action at issue. Unless a demand is excused as provided for above, shareholders eligible to bring such derivative action under the Delaware Act who collectively hold shares representing ten percent (10%) or more of the total net asset value of all outstanding shares of the Target Trust, or of the series (or classes) to which such action relates if it does not relate to all series and classes, shall join in the request for the trustees to commence such action. Unless a demand is excused under this paragraph, the trustees must be afforded a reasonable amount of time to consider such shareholder demand and to investigate the basis of such claim. The trustees, at the expense of the Target Trust, shall be entitled to retain counsel or other advisors to consider the merits of the demand. The trustees may designate a committee of one or more trustees to consider a shareholder demand if necessary to create a committee with a majority of trustees who are "independent trustees" (as such term is defined in the Delaware Act). | &nbsp;&nbsp; In addition to applicable provisions of state law, prior to bringing a derivative action, a demand executed by no fewer than three unrelated shareholders must be made on the Trustees, and shall contain a detailed description of the action or failure to act complained of, the facts upon which such allegation is made and the reasonably estimated damages or other relief sought, unless a demand is not likely to succeed (which shall be the case only if a majority of the Board of Trustees, or a majority of any committee established to consider the merits of such action, is composed of Trustees who are "Interested Persons" as defined in the 1940 Act) and irreparable nonmonetary injury to the Trust or series or class that the plaintiff could not reasonably have prevented would otherwise result. Unless a demand is not required as noted above, shareholders who collectively hold shares representing 10% or more of the total combined net asset value of all shares issued and outstanding or of the series or class to which such action relates, must join in the request for the Trustees to commence such action. The Trustees may review and reject the demand after evaluation. |

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**Purchase and Sale of Acquiring Fund Shares**

You may buy or sell shares of an Acquiring Fund through a retirement plan, an investment professional, a broker-dealer, or other financial intermediary. You may purchase or redeem shares of an Acquiring Fund on any day the New York Stock Exchange ("**NYSE**") is open, at the Acquiring Fund's net asset value ("**NAV**") per share next calculated after your order is received in proper form, subject to any applicable sales charge. The Manager may, in its sole discretion, allow certain individuals to invest directly in an

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Acquiring Fund. For more information regarding eligibility to invest directly please see "**About Your Investment - Purchase and** **Redemption of Shares**" in Appendix C. Direct mutual fund account shareholders may buy subsequent shares or sell shares in various ways:

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| | | |
|:---|:---|:---|
| **Internet** | **www.americanbeaconfunds.com** | **www.americanbeaconfunds.com** |
| **Phone** | **To reach an American Beacon representative call 1-800-658-5811, option 1**<br> **Through the Automated Voice Response Service call 1-800-658-5811, option 2 (Investor Class** **only)** | **To reach an American Beacon representative call 1-800-658-5811, option 1**<br> **Through the Automated Voice Response Service call 1-800-658-5811, option 2 (Investor Class** **only)** |
| **Mail** | **American Beacon Funds**<br> **P.O. Box 219643**<br> **Kansas City, MO 64121-9643** | **Overnight Delivery:**<br> **American Beacon Funds**<br> **801 Pennsylvania Ave**<br> **Suite 219643**<br> **Kansas City, MO 64105-1307** |

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| | | | |
|:---|:---|:---|:---|
| <br>**Share Class** | New Account<br>**Minimum Initial Investment Amount** | Existing Account<br>**Purchase/Redemption Minimum by** **Check/ACH/Exchange** | <br>**Purchase/Redemption Minimum by** **Wire** |
| Y | $100000 | $50 |  |
| Investor | $2500 | $50 | $250 |

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**Tax Information for Acquiring Funds**

Dividends, capital gains distributions, and other distributions, if any, that you receive as a result of your investment in an Acquiring 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).

**Payments to Broker-Dealers and Other Financial Intermediaries for Acquiring Funds**

If you purchase shares of an Acquiring Fund through a broker-dealer or other financial intermediary (such as a bank), the Acquiring Fund and the Acquiring Fund's distributor, Resolute Investment Distributors, Inc., or the Manager may pay the intermediary for the sale of Acquiring Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial professional to recommend an Acquiring Fund over another investment. Ask your individual financial professional or visit your financial intermediary's website for more information.

**Comparison of Distribution and Purchase, Redemption and Exchange Procedures**

Quasar Distributors, LLC, a wholly owned subsidiary of Foreside Financial Group, LLC (d/b/a ACA Group) ("**Quasar**"), located at 190 Middle Street, Suite 301, Portland, Maine 04101, is the distributor for the shares of the Target Funds. Quasar is a registered broker-dealer and is a member of the Financial Industry Regulatory Authority ("**FINRA**"). Under a Distribution Agreement with the Target Trust, Quasar acts as the Target Funds' agent in connection with the continuous offering of shares of the Target Funds. Quasar has no obligation to sell any specific quantity of the Target Funds' shares.

Resolute Investment Distributors, Inc. ("**RID**" or "**Distributor**'"), located at 220 East Las Colinas Blvd., Suite 1200, Irving, Texas 75039, is or will be the distributor and principal underwriter of the Acquiring Funds' shares. RID is a registered broker-dealer and is a member of FINRA. The Distributor is affiliated with the Manager through common ownership. Under a Distribution Agreement with the Acquiring Trust, RID acts as the distributor and principal underwriter of the Acquiring Trust in connection with the continuous offering of shares of the Acquiring Funds. The Distributor continually distributes shares of the Acquiring Fund on a best efforts basis. The Distributor has no obligation to sell any specific quantity of the Acquiring Funds' shares.

The Target Funds have adopted a plan under Rule 12b-1 under the 1940 Act for Class N shares that allows the Target Funds to make payments to the Target Funds' distributor to compensate it for services provided and expenses incurred by it to promote the sale of the Class N shares, reduce redemptions of those shares, and maintain or improve services provided to shareholders of that class by financial intermediaries. Because these fees are paid out of a Target Fund's assets on an on-going basis, over time these fees will increase the cost of your investment and may cost you more than paying other types of sales charges. The maximum annual Rule 12b-1 fee for Class N shares of a Target Fund is 0.25%. The Class I shares of the Target Funds do not pay any Rule 12b-1 fees.

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The Y Class and Investor Class shares of the Acquiring Funds do not pay any Rule 12b-1 fees. However, the Acquiring Funds have adopted a shareholder services plan for Investor Class shares for certain non-distribution shareholder services provided by financial intermediaries. The shareholder services plan authorizes annual payment of up to 0.375% of the average daily net assets attributable to the Investor Class shares.

**Purchase, Redemption and Exchange Procedures**

**Purchase Procedures.** The purchase procedures for the Target Funds and the Acquiring Funds are similar. Class I shares of the Target Funds are offered to shareholders who meet the initial $100,000 investment minimum for regular accounts or $5,000 for IRA/HSA accounts. Class I shares may be purchased directly from each Target Fund by contacting the Target Funds' transfer agent, or from financial intermediaries that make shares of the Target Funds available to their customers. Class N shares of the Target Funds are offered to shareholders who meet the initial $2,000 minimum for regular accounts or $500 for IRA/HSA accounts. Class N shares may be purchased directly from each Target Fund or through certain financial intermediaries that have made special arrangements with the Target Funds' distributor to offer Class N shares to their clients. Financial intermediaries that may make Class N shares available to their clients include banks, trust companies, broker-dealers, or other financial organizations, many of which may also charge their clients an advisory fee, management fee, consulting fee, fee in lieu of brokerage commissions or other similar fees for their services. Both the Class I and Class N shares require that all accounts and automatic investment plans meet a $100 minimum for subsequent investments.

The Y Class and Investor Class shares of the Acquiring Funds are available to eligible investors who meet the minimum initial investment. Subject to eligibility, shareholders may invest in the Acquiring Funds through intermediary organizations, such as broker-dealers, insurance companies, plan sponsors, third party administrators, and retirement plans. The Manager may allow certain individuals to invest directly in the Acquiring Funds in its sole discretion. The minimum initial investment for Y Class shares of the Acquiring Funds is $100,000. The minimum initial investment for Investor Class shares of the Acquiring Fund is $2,500. The minimum subsequent investment amount for the Acquiring Fund's shares is $50 for purchases by ACH, check or exchange, $250 for purchases by wire for Investor Class shares, and $0 for purchases by wire transfer for Y Class shares. These minimum investment requirements will be waived for all Target Fund shareholders in connection with the Reorganization, and Target Fund shareholders will be able to continue to purchase Y Class or Investor Class shares of the Acquiring Fund without meeting the respective minimum initial investment amounts.

Acquiring 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 shares of an Acquiring Fund are available for offer and sale in their jurisdiction. The Acquiring Funds reserve the right to refuse purchases if, in the judgment of the Acquiring Fund, the transaction would adversely affect the Acquiring Fund and its shareholders. The Acquiring Funds have the right to reject any purchase order or cease offering any or all classes of shares at any time. 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 Acquiring Funds 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 Acquiring 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. Additional information for the Acquiring Funds is set forth in Appendix C to this Proxy Statement.

**Redemption Procedures.** The Target Fund permits, and the Acquiring Fund will permit, redemptions by mail, telephone, wire, or in some cases, via the internet. For shares purchased through a broker-dealer or financial intermediary, shares may be redeemed through that financial intermediary. Additionally, each Fund has also reserved the right to redeem shares "in kind." Additional shareholder account information for the Acquiring Funds is set forth in Appendix C to this Proxy Statement.

**Exchange and Conversion Procedures.** Target Fund shareholders may exchange Class I or Class N shares of one Fund for Class I or Class N shares, respectively, of another fund of the Target Trust, if available, by contacting your financial intermediary, or (for direct shareholders) in writing, by calling the transfer agent at 877 DLine11 (877 354 6311), or by accessing your account online at DoubleLine.com. Exchanges are subject to the eligibility requirements and the fees and expenses of the Target Fund shares. From time to time, a Target Fund may authorize the conversion of shares from one class to another share class. Such conversions may be subject to certain conditions, including that the shares of the other class are eligible for sale in the owner's state of residence and all other applicable terms and conditions are met. Currently, Class I Shares and Class N Shares of the Target Funds do not convert as a matter of right to any other class of shares. Shares of the Acquiring Funds may be exchanged for shares of the same class of another American Beacon Fund under certain limited circumstances. Since an exchange involves a concurrent purchase and redemption, please review the sections titled "Purchase Policies" and "Redemption Policies" in Appendix C to this Proxy Statement for additional limitations that apply to purchases and redemptions of the Acquiring Funds shares. Shares of any class of an Acquiring Fund may be converted to shares of another class of the same Acquiring Fund under certain limited circumstances. For federal income tax

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purposes, the conversion of shares of one share class of a Fund to shares of a different share class of a Fund will not result in the realization of a capital gain or loss. However, an exchange of shares of a Fund for shares of a different American Beacon Fund generally is considered a redemption and a concurrent purchase, respectively, and thus may result in the realization of a capital gain or loss for those purposes. The eligibility and minimum investment requirement must be met for the class into which the shareholder is exchanging. American Beacon Fund shares may be acquired through exchange only in states in which they can be legally sold. The Acquiring Trust reserves the right to charge a fee and to modify or terminate the exchange privilege at any time. Please refer to the section titled "Frequent Trading and Market Timing" in Appendix C to this Proxy Statement for information on the Acquiring Trust's policies regarding frequent purchases, redemptions, and exchanges.

**ADDITIONAL INFORMATION ABOUT THE FUNDS** 

**SERVICE PROVIDERS**

**The Manager**

American Beacon Advisors, Inc. (the "**Manager**") serves as the Manager and administrator of the Acquiring Funds. The Manager, located at 220 East Las Colinas Boulevard, Suite 1200, Irving, Texas 75039, is an indirect wholly-owned subsidiary of Resolute Topco, Inc. ("**Topco**"), which is owned primarily by various institutional investment funds that are managed by financial institutions and other investment advisory firms. No owner of Topco owns 25% or more of the outstanding equity or voting interests of Topco.

The Manager was organized in 1986 to provide investment management, advisory, and administrative services. The Manager is registered as an investment adviser under the Investment Advisers Act of 1940, as amended ("**Advisers Act**"). The Manager, on behalf of the Acquiring Funds, has filed a notice claiming the CFTC Regulation 4.5 exclusion from registration as a commodity pool operator 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 Acquiring Funds.

The Manager may allocate the assets of each Acquiring Fund among different sub-advisors. The Manager provides or oversees the provision of all administrative, investment advisory and portfolio management services to the Acquiring Funds. The Manager:

• develops
 overall investment strategies for each Acquiring Fund,

• selects
 and changes sub-advisors,

• allocates
 assets among sub-advisors,

• monitors
 and evaluates the sub-advisor's investment performance,

• monitors
 the sub-advisor's compliance with each Acquiring Fund's investment objectives, policies and restrictions,

• oversees
 each Acquiring 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 Acquiring Fund's assets are currently allocated by the Manager to one sub-advisor, DoubleLine Capital. DoubleLine Capital has full discretion to purchase and sell securities for the Acquiring Fund assets allocated to it in accordance with the Acquiring Funds' objectives, policies, restrictions and more specific strategies provided by the Manager. The Manager oversees the sub-advisor but does not reassess individual security selections made by the sub-advisor for its portfolios.

In the future, the Manager may allocate an Acquiring Fund's assets to a different sub-advisor, and/or to one or more additional sub-advisors. The Acquiring Funds operate in a manager of managers structure. The Acquiring Funds and the Manager have received an exemptive order from the SEC that permits the Acquiring Funds, subject to certain conditions and approval by the Acquiring Trust 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 Acquiring Funds and the Manager may rely on an SEC staff no-action letter, dated July 9, 2019, that would permit the Acquiring Funds to expand their exemptive relief to hire and replace sub-advisors that are affiliated and unaffiliated with the Manager without shareholder approval, subject to approval by the Acquiring Trust Board and other conditions. The Manager has ultimate responsibility, subject to oversight by the Acquiring Trust Board, to oversee sub-advisors and recommend their hiring, termination and replacement. The SEC order also exempts the Acquiring Funds from disclosing the advisory fees paid by the Acquiring Funds to individual sub-advisors in a multi-manager fund in various documents filed with the SEC and provided to shareholders. In the future, the Acquiring Funds may rely on the SEC staff no-action letter to expand their 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

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implemented, the Acquiring Trust Board, including a majority of its "non-interested" trustees, must approve the change. In addition, the Acquiring Funds are required to provide shareholders with certain information regarding any new sub-advisor within 90 days of the hiring of any new sub-advisor.

The Acquiring Funds' management agreement with the Manager (the "Management Agreement") provides for an Acquiring Fund to pay the Manager an annualized management fee based on a percentage of a Fund's average daily net assets that is calculated and accrued daily according to the following schedule:

Acquiring Fund

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

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The Management Agreement currently provides that, for such time as DoubleLine Capital serves as the sub-advisor to the Acquiring Floating Rate Income Fund, with respect to the assets managed by DoubleLine Capital, the Fund shall pay the Manager an annualized management fee based on the following fee schedule:

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| | |
|:---|:---|
| First $170 million  | 0.250% |
| $170 million to $2 billion  | &nbsp;&nbsp;&nbsp;&nbsp;0.300% |
| $2 billion to $5 billion | &nbsp;&nbsp;&nbsp;&nbsp;0.250% |
| $5 billion to $10 billion | 0.225% |
| $10 billion to $20 billion | 0.200% |
| Over $20 billion | 0.175% |

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The Management Agreement further provides that, effective as of the Closing Date of the Reorganization, for such time as DoubleLine Capital LP serves as the sub-advisor to the Acquiring Floating Rate Income Fund, with respect to the assets managed by DoubleLine Capital, the Fund shall pay the Manager an annualized management fee based on the following fee schedule:

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| | |
|:---|:---|
| First $170 million | 0.10% |
| Over $170 million | 0.15% |

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The Management Agreement further provides that, for such time as DoubleLine Capital LP serves as the sub-advisor to the Acquiring Select Income Fund, with respect to the assets managed by DoubleLine Capital, the Fund shall pay the Manager an annualized management fee of 0.10% on the assets of the Target Fund on the Closing Date of the Reorganization, 0.10% on the next $50 million in assets thereafter, and 0.15% on assets thereafter.

For the fiscal year ended August 31, 2024, the Acquiring Floating Rate Income Fund paid aggregate management fees to the Manager and investment advisory fees to its sub-advisor of 0.60% of the Fund's average daily net assets, net of any waivers and recoupments of management fees and sub-advisory fees.

As compensation for services provided by the Manager in connection with securities lending activities conducted by an Acquiring Fund, the lending Acquiring Fund would pay to the Manager, with respect to cash collateral posted by borrowers, a fee of 10% of the net monthly investment income (the income earned in the form of interest, dividends and realized capital gains from the investment of cash collateral, plus any negative rebate fees paid by borrowers, less the rebate amount paid to borrowers as well as related expenses) and, with respect to collateral other than cash, a fee up to 10% of loan fees and demand premiums paid by borrowers. The SEC has granted exemptive relief that permits a 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 Proxy Statement, the Acquiring Funds do not intend to engage in securities lending activities.

As of the date of this Proxy Statement, the Acquiring American Beacon Select Income Fund had not commenced operations and has not paid aggregate management fees to the Manager and investment advisory fees to the sub-advisor.

A discussion of the Acquiring Trust Board's consideration and approval of the Management Agreement between the Acquiring Trust, on behalf of the Acquiring Floating Rate Income Fund, and the Manager, and the Investment Advisory Agreement among the Acquiring Trust, on behalf of the Acquiring Floating Rate Income Fund, the Manager, and DoubleLine Capital, will be available in the Acquiring Floating Rate Income Fund's Annual Financial Statements as filed in Form N-CSR with the SEC for the fiscal year ended August 31, 2025.

A discussion of the Acquiring Trust Board's consideration and approval of the Management Agreement between the Acquiring Trust, on behalf of the Acquiring Select Income Fund, and the Manager, and the Investment Advisory Agreement among the Acquiring Trust, on behalf of the Acquiring Select Income Fund, the Manager, and DoubleLine Capital, will be available in the Acquiring Select Income Fund's Semi-Annual Financial Statements as filed in Form N-CSR with the SEC for the fiscal period ending February 28, 2026.

**Contractual Expense Limitations**

The Manager has contractually agreed to waive fees and/or reimburse expenses of the following share classes of the Acquiring Floating Rate Income Fund to the extent that Total Annual Fund Operating Expenses exceed a percentage of that class's average daily net assets (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses) as follows, through December 31, 2025:

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| | | |
|:---|:---|:---|
|  | **<u>Y Class</u>**  | **<u>Investor</u>** **<u>Class</u>** |
| American Beacon DoubleLine Floating Rate Income Fund | 0.88% | 1.16% |

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American Beacon will continue that fee waiver through December 31, 2026. However, if the Reorganization is approved, effective as of the Closing Date, the Manager has contractually agreed to waive fees and/or reimburse expenses of each Acquiring Fund's Y Class and Investor Class shares through February 6, 2028, or, if longer, two years following the Closing Date, to the extent that Total Annual Fund Operating Expenses exceed a percentage of that class's average daily net assets (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses) as follows:

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| | | |
|:---|:---|:---|
|  | **<u>Y Class</u>** | **<u>Investor</u>** **<u>Class</u>** |
| American Beacon DoubleLine Floating Rate Income Fund | 0.75% | 1.00% |
| American Beacon DoubleLine Select Income Fund | 0.59% | 0.84% |

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The contractual expense reimbursement can be changed or terminated only in the discretion and with the approval of a majority of the Acquiring Fund's Board. The Manager will itself waive fees and/or reimburse expenses of the Acquiring Fund to maintain the contractual expense ratio caps for each applicable class of shares 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 Acquiring Fund. The Acquiring Trust Board has approved a policy whereby the Manager may seek repayment 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 Total Annual Fund Operating Expenses of a class to exceed the lesser of the contractual percentage limit in effect at the time of the waiver/reimbursement or the time of recoupment.

**The Sub-Advisor**

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

**DoubleLine Capital LP ("DoubleLine Capital"),** which is located at 2002 N. Tampa Street, Suite 200, Tampa, FL 33602, is a registered investment Advisor, DoubleLine Capital serves as the Sub-Advisor to the Acquiring Floating Rate Income Fund effective as of the close of business on June 20, 2025, and will serve as the Sub-Advisor to the Acquiring Select Income Fund. DoubleLine Capital was organized in 2009 as a Delaware limited liability company and was converted into a Delaware limited partnership on December 23, 2009. As of May 31, 2025, DoubleLine Capital had approximately $89.7 billion in assets under management.

**DoubleLine Capital Portfolio Managers for the American Beacon DoubleLine Floating Rate Income Fund**

**Robert Cohen** Mr. Cohen was named as DoubleLine Capital's Director of Global Developed Credit in September 2016. He has been a Portfolio Manager of DoubleLine Capital since July 2012. Prior to DoubleLine Capital, he was a Senior Credit Analyst at West Gate Horizons Advisors (and its predecessor entity, ING Capital Advisors) since 2001.

**Philip Kenney** Mr. Kenney joined DoubleLine Capital's Global Developed Credit Group in 2013 and has been a Portfolio Manager since 2018. Prior to joining the firm, he worked at Crescent Capital as an investment analyst with a focus on high yield bonds and leveraged loans.

**DoubleLine Capital Portfolio Managers for the American Beacon DoubleLine Select Income Fund**

**Andrew Hsu, CFA** joined DoubleLine Capital at its inception in 2009. He is a Portfolio Manager for the DoubleLine Total Return and ABS/Infrastructure Income strategies. Mr. Hsu is a permanent member of the Fixed Income Asset Allocation and Structured Products Committees. Prior to that, he was responsible for analysis and trading of structured products, where his focus included residential MBS and ABS transactions. Mr. Hsu's responsibilities have also included structuring and negotiating terms on new-issue transactions and forming strategic partnerships with issuing entities in order to participate in key transactions. Prior to DoubleLine Capital, he worked at TCW from 2002 to 2009, where he focused on credit analysis for structured product securities and co-managed two structured product funds centered on debt and equity investments. During that time, Mr. Hsu was actively involved with portfolio management decisions and investment analysis, including reverse engineering complex CDO/CLO structures. He holds a BS in Finance from the University of Southern California and is a CFA® charterholder.

**Damien Contes, CFA** joined DoubleLine Capital in 2013. He is Chairman of the Responsible Investment Advisory Committee and leads the firmwide Responsible Investment initiative and the DoubleLine Responsible Investment Team. In addition, Mr. Contes is a Portfolio Manager on the Global Infrastructure Investments team. Previously, Mr. Contes was a Corporate Analyst responsible for the coverage of transportation, oil & gas, and petrochemical sectors for the Emerging Markets Fixed Income group. Prior to DoubleLine Capital, he was a Corporate Research Analyst at ICE Canyon, where he contributed to the investment management of the firm's

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three types of Emerging Markets and global vehicles: hedge fund (absolute return), index products (relative value) and collateralized loan obligations (CLOs). Previous to ICE Canyon, he was a Senior Bank Debt Specialist with Canyon Capital Advisors, where he was responsible for the settlement of foreign and distressed bank debt transactions. Prior to that, he was a Senior Fund Accountant with Mellon Financial Corporation, overseeing Emerging Markets Real Estate funds and Oil & Gas Debt and Royalty funds. Mr. Contes holds a B.S. in Business Administration with a concentration in Accounting & Finance from the College of Charleston in Charleston, South Carolina. He is a CFA® charterholder.

The Investment Advisory Agreement among the Trust, on behalf of the Acquiring Floating Rate Income Fund, the Manager and the sub-advisor provides for the Acquiring Floating Rate Income Fund to pay the sub-advisor an annualized investment advisory fee based on a percentage of the Acquiring Floating Rate Income Fund's average daily net assets that is calculated and accrued daily of 0.40% on the first $170 million in assets under management and 0.35% on assets under management thereafter.

The Investment Advisory Agreement among the Trust, on behalf of the Acquiring Select Income Fund, the Manager and the sub-advisor provides for the Acquiring Select Income Fund to pay the sub-advisor an annualized investment advisory fee based on a percentage of the Acquiring Select Income Fund's average daily net assets that is calculated and accrued daily of 0.40% on the assets under management of the Target Select Income Fund on the closing date of the Reorganization, 0.40% on the next $50 million in assets under management thereafter, and 0.35% on assets under management thereafter.

**Other Service Providers**

Resolute Investment Distributors, Inc. ("RID") is the Acquiring Funds' distributor and principal underwriter of the Acquiring Funds' shares. RID, located at 220 East Las Colinas, Blvd., Suite 1200, Irving, Texas 75039, is a registered broker-dealer and is a member of FINRA. The Distributor is affiliated with the Manager through common ownership. Under a Distribution Agreement with the Acquiring Trust, the Distributor acts as the distributor and principal underwriter of the Acquiring Trust in connection with the continuous offering of shares of the Acquiring Funds. The Distributor continually distributes shares of the Acquiring Funds on a best efforts basis. The Distributor has no obligation to sell any specific quantity of the Acquiring Funds' shares. The Distributor retains any portion of the commission fees that are not paid to the broker-dealers for use solely to pay distribution related expenses.

Since the Acquiring DoubleLine Select Income Fund had not commenced operations prior to the date of this SAI, no underwriting discounts and commissions, compensation on redemptions and repurchases, brokerage commissions or other compensation have been paid to, or retained by, the Distributor.

State Street, located at One Congress Street, Suite 1, Boston, Massachusetts 02114-2016, serves as custodian ("**Custodian**") for the Acquiring Funds. State Street also serves as the Acquiring Funds' 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 Acquiring Funds with certain financial reporting and tax services.

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

The Acquiring Funds' independent registered public accounting firm is PricewaterhouseCoopers LLP, which is located at 101 Seaport Blvd, Suite 500, Boston, Massachusetts 02210.

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

**Payments to Financial Intermediaries**

For certain share classes, an Acquiring Fund and/or the Manager (and/or the Manager's affiliates), at their own expense, may pay compensation to financial intermediaries for shareholder-related services and, if applicable, distribution-related services, including administrative, sub-transfer agency type, recordkeeping and shareholder communication services. For example, compensation may be paid to make Acquiring Fund shares available to sales representatives and/or customers of a fund supermarket platform or similar program sponsor or for services provided in connection with such fund supermarket platforms and programs.

The amount of compensation paid to different financial intermediaries may differ. The compensation paid to a financial intermediary may be based on a variety of factors, including average assets under management in accounts distributed and/or serviced by the financial intermediary, gross sales by the financial intermediary and/or the number of accounts serviced by the financial intermediary that invest in an Acquiring Fund. To the extent that an Acquiring Fund pays any such compensation, it is designed to compensate the financial intermediary for providing services that would otherwise be provided by the Manager, an Acquiring Fund or its transfer agent. To the extent the Manager or its affiliates pay such compensation, it would likely include amounts from that party's own resources and constitute what is sometimes referred to as ''**revenue sharing.**''

Compensation received by a financial intermediary from an Acquiring Fund, the Manager or an affiliate of the Manager may include payments for marketing and/or training expenses incurred by the financial intermediary, including expenses incurred by the financial intermediary in educating (itself and) its salespersons with respect to Acquiring Fund shares. For example, such compensation may include reimbursements for expenses incurred in attending educational seminars regarding the Acquiring Fund, including travel and

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lodging expenses. It may also cover costs incurred by financial intermediaries in connection with their efforts to sell Acquiring Fund shares, including costs incurred compensating (registered) sales representatives and preparing, printing and distributing sales literature.

Any compensation received by a financial intermediary, whether from an Acquiring Fund or the Manager and/or its affiliates, and the prospect of receiving it may provide the financial intermediary with an incentive to recommend the shares of an Acquiring Fund, or a certain class of shares of an Acquiring Fund, over other potential investments. Similarly, the compensation may cause financial intermediaries to elevate the prominence of an Acquiring Fund within its organization by, for example, placing it on a list of preferred funds. You can contact your financial intermediary for details about any such payments it receives from the Manager, its affiliates and/or an Acquiring Fund, or any other fees, expenses, or commissions your financial intermediary may charge you in addition to those disclosed in this Proxy Statement.

**"Householding"**

One copy of this Proxy Statement may be delivered to multiple shareholders who share a single address, unless the Target Fund has received instructions to the contrary. If you would like to obtain an additional copy of this Proxy Statement or a copy of the Target Fund's most recent shareholder reports, free of charge, write to the Target Funds at: DoubleLine Funds c/o U.S. Bank Global Fund Services, P.O. Box 219252 Kansas City, MO 64121-9252, or call 877-354-6311. If you received a Proxy Statement for each shareholder at your address and would like to receive a single copy in the future, please contact the Manager as instructed above.

**Additional Information**

For additional information regarding the Acquiring Funds (and other funds in the Acquiring Trust), including: (1) the Acquiring Fund's investments; (2) purchase, exchange and redemption information; (3) valuation of Acquiring Fund shares; (4) account and transaction policies; and (5) information regarding dividends, other distributions and taxes, please see <u>Appendix C</u>.

**VOTING INFORMATION**

**Record Date, Voting Rights and Vote Required**

Proxies are being solicited from the shareholders of the Target Funds by the Target Trust Board for the Special Meeting to be held as a virtual meeting at https://www.viewproxy.com/DoubleLine/broadridgevsm/, on January 14, 2026 at 11: 00 am, Eastern time, and any adjournments or postponements thereof.

The Target Trust Board has fixed the close of business on October 17, 2025 as the record date (the "**Record Date**") for the determination of shareholders entitled to notice of and to vote at the Special Meeting and any adjournments thereof. Shareholders of record as of the Record Date will be entitled to one vote for each dollar of Net Asset Value (number of Shares owned times Net Asset Value per Share) of such Target Fund, and each fractional dollar amount shall be entitled to a proportionate fractional vote. Regardless of the class of shares they own, shareholders of each Target Fund will vote as a single class on their respective Reorganization Plan.

The individuals named as proxies on the enclosed proxy cards will vote in accordance with your directions as indicated thereon if your proxy card is received and has been properly executed. Unless revoked, all valid proxies will be voted in accordance with the specification thereon. If your proxy card is properly executed and you give no voting instructions, your shares will be voted "**FOR**" approval of the applicable Reorganization Plan. The total number of issued and outstanding shares of beneficial interest of each class of the Target Funds as of the Record Date is set forth below. Shareholders of the Acquiring Floating Rate Income Fund are not entitled to vote, and will not vote, on the Reorganization.

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| | | |
|:---|:---|:---|
|  | **Outstanding Shares** | **Dollar Value** |
| DoubleLine Floating Rate Fund — Class I  | $[XX] | [XX] |
| DoubleLine Floating Rate Fund — Class N | $[XX] | [XX] |
| DoubleLine Select Income Fund — Class I | $[XX] | [XX] |
| DoubleLine Select Income Fund — Class N | $[XX] | [XX] |

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Approval of each Reorganization Plan requires the affirmative vote of the holders of a "**majority of the outstanding voting** **securities**" as such term is defined in the Investment Company Act (an "**Investment Company Act Majority**") of the respective Target Fund entitled to vote on the corresponding Reorganization Plan. For this purpose, a vote of the holders of a "**majority of the** **outstanding voting securities**" of a Target Fund means the lesser of: (a) the affirmative vote of 67% or more of a Target Fund's shares present at the Special Meeting, if the holders of more than 50% of a Target Fund's outstanding shares are present in person

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or represented by proxy; or (b) the affirmative vote of more than 50% of a Target Fund's outstanding shares. Shareholders of record who own five percent or more of a Target Fund as of the Record Date are set forth on Appendix B to this Proxy Statement. The Target Trust will request broker-dealers, custodians, nominees and fiduciaries to forward proxy materials to the beneficial owners of shares held of record by such persons.

**How to Vote**

You may cast your vote by mail, via the internet, and by telephone as set forth below:

**By Telephone.** Submit a proxy by calling the toll-free telephone number printed on the proxy card. The proxy card should be in hand when making the call. Easy-to-follow voice prompts allow the shareholder of record to authenticate his or her identity by entering the validation numbers printed on the enclosed proxy card, provide voting instructions for the shares, and confirm that the instructions have been properly recorded.

Please see the instructions on the enclosed proxy card for telephone touch-tone proxy submission. Shareholders will have an opportunity to review their voting instructions and to make any necessary changes before submitting their voting instructions and terminating their telephone call.

**By Internet.** Submit a proxy via the Internet by accessing the web address printed on the proxy card. The proxy card should be in hand when accessing the web page. Easy-to-follow on screen instructions allow the shareholder of record to authenticate his or her identity by entering validation numbers printed on the enclosed proxy card, provide voting instructions for the shares, and confirm that the instructions have been properly recorded.

Please see the instructions on the enclosed proxy card for Internet proxy submission. Shareholders will have an opportunity to review their voting instructions and to make any necessary changes before submitting their voting instructions.

**By Mail.** Shareholders of record may complete, sign, and date the proxy card and return it in the prepaid envelope provided.

**Proxies**

All proxy cards that are properly executed and received in time to be voted at the Special Meeting will be voted at the Special Meeting or any adjournment or postponement thereof according to the instructions on the proxy card. If no contrary direction is given on an executed proxy card, it will be voted FOR the applicable Reorganization Plan.

You may revoke a proxy once it is given. If you desire to revoke a proxy, you must submit a written notice of revocation to Neal L. Zalvan, Secretary of the Target Trust, which must be delivered to the Target Trust prior to the exercise of the proxy. You may also revoke a proxy through execution of a subsequent proxy or attendance and voting in person at the meeting, or if a written notice of your death or incapacity is received by the Target Trust before the proxy's vote is counted. Attendance by a shareholder at the Special Meeting does not, by itself, revoke a proxy.

**Quorum and Adjournments**

The presence in person or by proxy of shareholders of a Target Fund owning shares of the Target Fund representing thirty-three and one-third percent (33 ⅓%) or more of the total combined votes of all shares of all of that Target Fund's shares entitled to vote shall constitute a quorum for the transaction of any business at the Special Meeting.

If a quorum is not present or represented at the Special Meeting, if a quorum is present at the Special Meeting but sufficient votes to approve the Reorganization Plan are not received, or if other matters arise requiring shareholder attention, the persons named as proxies may propose one or more adjournments of the Special Meeting to permit further solicitation of proxies. The persons named as proxies will vote for or against an adjournment in their discretion. Abstentions will be counted AGAINST such proposal to adjourn.

**Abstentions and Broker "Non-Votes"**

The Target Funds expect that, before the Special Meeting, broker-dealer firms holding shares of the Target Funds in "**street name**" will request voting instructions from their customers. Pursuant to NYSE Rule 452, if the broker-dealer firms do not receive instructions from beneficial owners or persons entitled to vote, a broker-dealer cannot vote on a Proposal in its discretion and any such shares represented by proxy at the Special Meeting would be considered "**broker non-votes**." Shares represented by proxies that reflect abstentions and "**broker non-votes**" will be counted as shares that are present and entitled to vote on a Proposal for purposes of determining the presence of a quorum. Any abstentions would have the effect of a negative vote on a Proposal. Because broker-dealers (in the absence of specific authorization from their beneficial owners or persons entitled to vote) are not expected to have discretionary authority to vote shares owned beneficially by their customers on any Proposal, there are unlikely to be any "**broker non-votes**."

**Solicitation of Proxies**

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The solicitation of proxies will be largely by mail, but also may include telephonic, Internet, or oral communication by representatives of DoubleLine Capital or its affiliates and officers and service providers of the Target Funds, who will not be paid for these services. DoubleLine Capital has retained Broadridge Financial Solutions, Inc. to aid in the printing and solicitation of proxies, at an anticipated cost of approximately $387,000 plus expenses. American Beacon has agreed to bear these costs.

**Other Business and Next Meeting of Shareholders**

No business other than the proposals is expected to come before the Special Meeting, but should any other business properly come before the Special Meeting, the persons named in the enclosed proxy will vote thereon in their discretion.

The Target Funds do not hold regular meetings of shareholders. Shareholders wishing to submit proposals for inclusion in a proxy statement for a subsequent meeting of shareholders should send their written proposals to the Secretary of the DoubleLine Funds c/o U.S. Bank Global Fund Services, P.O. Box 219252 Kansas City, MO 64121-9252. Submission of a proposal does not necessarily mean that the proposal will be included.

**FINANCIAL HIGHLIGHTS**

For the financial highlights tables of the Target Funds, and the Acquiring Floating Rate Income Fund, see "Financial Highlights" in Appendix D. The Acquiring Select Income Fund has not yet commenced operations and, accordingly, no financial highlights are provided.

For the Target Funds, the information for the fiscal years ended March 31, 2021, 2022, 2023, 2024, and 2025 was audited by PricewaterhouseCoopers LLP, the Target Funds' independent registered public accounting firm for those periods. The information in the financial highlights has been derived from, and should be read in conjunction with, the financial statements of the Target Funds and the notes thereto, as well as the report of PricewaterhouseCoopers LLP, included in the Target Funds' Annual Financial Statements as filed in Form N-CSR with the SEC for the fiscal year ended March 31, 2025 and may be obtained upon request.

For the Acquiring Floating Rate Income Fund, the information in the financial highlights for the fiscal years ended August 31, 2022, August 31, 2023 and August 31, 2024 has been derived from the Acquiring Floating Rate Income Fund's financial statements audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, whose report, along with the Fund's financial statements, is included in the Acquiring Floating Rate Income Fund's annual Form N-CSR for the fiscal year ended August 31, 2024, which you may obtain upon request. The information for the fiscal years ended August 31, 2020 and August 31, 2021 was audited by the Fund's prior independent registered public accounting firm. The information for the fiscal period ended February 28, 2025 has not been audited.

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**APPENDIX A: FORMS OF AGREEMENT AND PLAN OF REORGANIZATION AND TERMINATION**

**Appendix A-1:** **DoubleLine Floating Rate Fund**

THIS AGREEMENT AND PLAN OF REORGANIZATION AND TERMINATION (**"Agreement"**) is made as of [ ], 2025, among **American** **Beacon Funds**, a Massachusetts business trust (**"Acquiring Fund Trust"**), on behalf of American Beacon DoubleLine Floating Rate Income Fund, a segregated portfolio of assets (**"series"**) thereof (the **"Acquiring Fund"**), **DoubleLine Funds Trust**, a Delaware statutory trust (**"Acquired Fund Trust"**), on behalf of its series, DoubleLine Floating Rate Fund (the **"Acquired Fund"**), and solely for purposes of paragraph 3.7, paragraph 7 and paragraph 13, **American Beacon Advisors, Inc.**, Acquiring Fund's investment adviser (**"Acquiring Fund Advisor"**), and **DoubleLine Capital LP**, Acquired Fund's investment adviser (**"Acquired Fund** **Advisor"**). (The Acquiring Fund Trust and Acquired Fund Trust are each sometimes referred to herein as an **"Investment** **Company"**; and the Acquiring Fund and the Acquired Fund are each sometimes referred to herein as a **"Fund."**) Notwithstanding anything to the contrary contained herein, (1) all agreements, covenants, representations, warranties, actions, and obligations of and by each Fund, and of and by the Investment Company of which that Fund is a series, on its behalf, shall be the agreements, covenants, representations, warranties, actions, and obligations of that Fund only, (2) all rights and benefits created hereunder in favor of a Fund shall inure to and be enforceable by the Investment Company of which that Fund is a series on that Fund's behalf, and (3) in no event shall any other series of an Investment Company or the assets thereof be held liable with respect to the breach or other default by a Fund or Investment Company of its agreements, covenants, representations, warranties, actions, and obligations set forth herein.

Each Investment Company wishes to effect a reorganization as described in section 368(a)(1) of the Internal Revenue Code of 1986, as amended (**"Code"**) (all **"section"** references are to the Code, unless otherwise noted), and intends this Agreement to be, and adopts it as, a "plan of reorganization" within the meaning of the regulations under the Code (**"Regulations"**). The reorganization will involve the Acquired Fund's (1) transferring all of its assets to the Acquiring Fund in exchange solely for Acquiring Fund Shares (as defined below) and Acquiring Fund's assumption of all of Acquired Fund's Liabilities (as defined below), (2) distributing the Acquiring Fund Shares pro rata to Acquired Fund's shareholders in exchange for their shares therein and in complete liquidation thereof (for federal tax purposes), and (3) terminating Acquired Fund, all on the terms and conditions set forth herein (the foregoing transaction being referred to herein collectively as the **"Reorganization"**).

Each Investment Company's board of trustees (each, a **"Board"**), in each case including a majority of its members who are not "interested persons" (as that term is defined in the Investment Company Act of 1940, as amended (**"1940 Act"**)) (**"Non-Interested** **Persons"**) of either Investment Company, (1) has duly adopted and approved this Agreement and the transactions contemplated hereby, (2) has duly authorized performance thereof on its Fund's behalf by all necessary Board action, and (3) has determined that participation in the Reorganization is in the best interests of the Fund that is a series thereof and, that the interests of the Fund's existing shareholders will not be diluted as a result of the Reorganization.

Acquired Fund currently offers I Class Shares (**"Acquired Fund I Class Shares"**) and N Class Shares (**"Acquired Fund N Class** **Shares"** and together with Acquired Fund I Class Shares, **"Acquired Fund Shares"**). Acquiring Fund has multiple classes of shares, including a class designated Y Class Shares (**"Acquiring Fund Y Class Shares"**) and a class designated Investor Class shares (**"Acquiring Fund Investor Class Shares"** and together with Acquiring Fund Y Class Shares, **"Acquiring Fund Shares"**); Acquiring Fund's other classes of shares (designated R5 Class shares, A Class Shares and C Class shares) will not be involved in the Reorganization and thus are not included in the term "Acquiring Fund Shares."

In consideration of the mutual promises contained herein, the Investment Companies agree as follows:

**<u>1. PLAN OF REORGANIZATION AND TERMINATION</u>**

1.1. Subject to the requisite approval of Acquired Fund's shareholders and satisfaction of the terms and conditions set forth herein, Acquired Fund shall assign, sell, convey, transfer, and deliver all of its assets described in paragraph 1.2 (**"Assets"**) to Acquiring Fund. In exchange therefor, Acquiring Fund shall:

(a) issue and deliver to Acquired Fund the number of full and fractional (all references herein to **"fractional"** shares meaning fractions rounded to the fourth decimal place) (1) Acquiring Fund Y Class Shares having an aggregate net asset value (**"NAV"**) equal to the Assets of the Acquired Fund attributable to the number of full and fractional Acquired Fund I Class Shares outstanding at the **Effective Time** less the value of the Liabilities (as defined below) attributable to such shares assumed by the Acquiring Fund at the Effective Time and (2) Acquiring Fund Investor Class Shares having an aggregate NAV equal to the Assets of the Acquired Fund attributable to the full and fractional Acquired Fund N Class Shares then outstanding less the value of the Liabilities attributable to such shares assumed by the Acquiring Fund at the Effective Time; and

<br>(b) assume all of Acquired Fund's liabilities described in paragraph 1.3 (**"Liabilities"**).

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Those transactions shall take place at the Closing (as defined in paragraph 3.1).

<br>1.2 The Assets shall consist of all assets, investments and property of every kind and nature including, without limitation, all cash, cash equivalents, securities, commodities, futures interests, receivables (including interest and dividends receivable), claims and rights of action, rights to register shares under applicable securities laws, and books and records of the Acquired Fund at the Effective Time (as defined in paragraph 3.1) and any deferred and prepaid expenses shown as assets on Acquired Fund's books at that time.

1.3 The Liabilities shall consist of all of Acquired Fund's liabilities, debts, obligations, and duties of any kind, whether contingent, accrued, or otherwise, excluding Reorganization Expenses (as defined in paragraph 4.1(z)) borne by Acquired Fund Advisor and Acquiring Fund Advisor, as applicable, pursuant to paragraph 7. Notwithstanding the foregoing, Acquired Fund shall endeavor to discharge all of its known liabilities, debts, obligations, and duties that are or will become due before the Effective Time, other than those incurred in the ordinary course of business that are associated with assets of the Acquired Fund to be transferred to the Acquiring Fund, prior to Closing. Any such liabilities incurred prior to Closing in the ordinary course of business that are associated with the assets of the Acquired Fund to be transferred to the Acquiring Fund not so discharged and existing at Closing shall be assumed by the Acquiring Fund.

1.4 At the Effective Time (or as soon thereafter as is reasonably practicable), Acquired Fund shall distribute all the Acquiring Fund Shares it receives pursuant to paragraph 1.1(a) to its shareholders of record determined at the Effective Time (each, a **"Shareholder"**), in proportion to their Acquired Fund Shares then held of record of the relevant class and in constructive exchange therefor, and shall completely liquidate (which shall be treated as a complete liquidation of Acquired Fund for federal tax purposes. That distribution shall be accomplished by Acquiring Fund Trust's transfer agent's opening accounts on Acquiring Fund's shareholder records in the Shareholders' names and transferring those Acquiring Fund Shares thereto. Pursuant to that transfer, each Shareholder's account shall be credited with the respective *pro rata* number of full and fractional Acquiring Fund Shares due to that Shareholder, by class (i.e., the account for each Shareholder that holds Acquired Fund I Class Shares shall be credited with the number of full and fractional Acquiring Fund Y Class Shares due that Shareholder, and the account for each Shareholder that holds Acquired Fund N Class Shares shall be credited with the number of full and fractional Acquiring Fund Investor Class Shares due that Shareholder). All issued and outstanding Acquired Fund Shares shall simultaneously be canceled on Acquired Fund's shareholder records. Acquiring Fund Trust shall not issue certificates representing the Acquiring Fund Shares issued in connection with the Reorganization.

1.5 Any transfer taxes payable on the issuance and transfer of Acquiring Fund Shares in a name other than that of the registered holder on Acquired Fund's shareholder records of the Acquired Fund Shares actually or constructively exchanged therefor shall be paid by the transferee thereof, as a condition of that issuance and transfer.

1.6 Any reporting responsibility of Acquired Fund to a public authority, including the responsibility for filing regulatory reports, tax returns, and other documents with the Securities and Exchange Commission (**"Commission"**), any state securities commission, any federal, state, and local tax authorities, and any other relevant regulatory authority, is and shall remain its responsibility up to and including the date on which it is terminated.

1.7 After the Effective Time, Acquired Fund shall not conduct any business except in connection with its termination. As soon as reasonably practicable after distribution of the Acquiring Fund Shares pursuant to paragraph 1.4, but in all events within six months after the Effective Time Acquired Fund shall be terminated as a series of Acquired Fund Trust.

**<u>2. VALUATION</u>**

2.1. For purposes of paragraph 1.1(a), the value of the Assets attributable to the Acquired Fund Shares and the value of the Liabilities attributable to the Acquired Fund Shares to be assumed by the Acquiring Fund will in each case be determined as of immediately after the close of regular trading on the New York Stock Exchange and Acquired Fund's declaration of dividends and/or other distributions, if any, on the date of the Closing (the **"Valuation Time"**), using the valuation procedures set forth in the Acquiring Fund Trust's then current prospectus and statement of additional information, as amended or supplemented from time to time (**"Pro/SAI"**), including Acquiring Fund and valuation procedures established by its Board (the **"Valuation Procedures"**).

2.2. For purposes of paragraph 1.1(a), the NAV per share of each class of Acquiring Fund Shares to be delivered to the Acquired Fund shall be computed at the Valuation Time, using the valuation procedures set forth in the Acquiring Fund Trust's then current prospectus and statement of additional information Pro/SAI including Acquiring Fund and valuation procedures established by its Board.

2.3. All computations pursuant to paragraphs 2.1 and 2.2 shall be made (a) by or under the direction of Acquiring Fund Advisor, or (b) in the case of securities subject to fair valuation, in accordance with the respective Valuation Procedures.

**<u>3. CLOSING AND EFFECTIVE TIME</u>**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

3.1 Unless the Investment Companies agree otherwise in writing, all acts necessary to consummate the Reorganization (**"Closing"**) shall be deemed to take place simultaneously as of immediately after the close of business (4:00 p.m., Eastern Time) on [February 6], 2026 (**"Effective Time"**). The Closing shall be held at Acquiring Fund Trust's offices or at such other place as to which the Investment Companies agree.

3.2 Acquired Fund Trust shall cause the custodian of Acquired Fund's assets (**"Old Custodian"**) (a) to make Acquired Fund's portfolio securities available to Acquiring Fund Trust (or to its custodian (**"New Custodian"**), if Acquiring Fund Trust so directs), for examination, no later than five business days preceding the Effective Time, it being understood that such holdings may change prior to the Effective Time, and (b) to transfer and deliver the Assets at the Effective Time to the New Custodian for Acquiring Fund's account, as follows: (1) duly endorsed in proper form for transfer in such condition as to constitute good delivery thereof in accordance with the custom of brokers, (2) by book entry, in accordance with the Old Custodian's customary practices and any securities depository (as defined in Rule 17f-4 under the 1940 Act) in which Acquired Fund's assets are deposited, in the case of Acquired Fund's portfolio securities and instruments deposited with those depositories, and (3) by wire transfer of federal funds in the case of cash. Acquired Fund Trust shall also direct the Old Custodian to deliver at the Closing a certificate of an authorized officer (**"Certificate"**) (a) stating that pursuant to proper instructions provided to the Old Custodian by Acquired Fund Trust, the Old Custodian has delivered all of Acquired Fund's portfolio securities, cash, and other Assets to the New Custodian for Acquiring Fund's account and (b) attaching a schedule setting forth information (including adjusted basis and holding period, by lot) concerning the Assets. The New Custodian shall certify to Acquiring Fund Trust that such information, as reflected on Acquiring Fund's books immediately after the Effective Time, does or will conform to that information as so certified by the Old Custodian. The Acquiring Fund hereby agrees to keep any portfolio securities information provided prior to the Effective Time confidential and to share such information only with its service providers that (i) require such information in connection with the consummation of the transaction contemplated herein and (ii) are subject to a duty, contractual or otherwise, to keep such information confidential.

3.3 Acquired Fund Trust shall deliver, or shall direct its transfer agent to deliver, to Acquiring Fund Trust at the Closing a Certificate, certified by Acquired Fund Trust's Secretary or Assistant Secretary or by its transfer agent, as applicable, listing (a) the Shareholders' names and addresses, (b) the number of full and fractional outstanding Acquired Fund Shares each such Shareholder owns, (c) the dividend reinvestment elections, if any, applicable to each Shareholder, and (d) the backup withholding and nonresident alien withholding certifications, notices, or records on file with Acquired Fund Trust with respect to each Shareholder, all at the Effective Time. Acquiring Fund Trust shall direct its transfer agent to deliver to Acquired Fund Trust at or as soon as reasonably practicable after the Closing a Certificate as to the opening of accounts on Acquiring Fund's shareholder records in the names of the listed Shareholders and a confirmation, or other evidence satisfactory to Acquired Fund Trust, that the Acquiring Fund Shares to be credited to Acquired Fund at the Effective Time have been credited to Acquired Fund's account on those records at that time and thereafter transferred to the Shareholders' accounts in accordance with paragraph 1.4.

3.4 Acquired Fund Trust shall deliver to Acquiring Fund Trust and Acquiring Fund Advisor, within five days before the Closing, it being understood that such holdings may change prior to the Effective Time, a Certificate listing each security, by name of issuer and number of shares, that is being carried on Acquired Fund's books at values provided by an authorized pricing vendor for Acquired Fund.

3.5 If requested by Acquiring Fund Trust, Acquired Fund Trust shall direct U.S. Bancorp Fund Services, LLC, Acquired Fund's administrator, and other applicable service providers to deliver at the Closing copies of all work papers and supporting statements related to financial statements and tax returns, including those related to ASC 740-10-25 (formerly, "Accounting for Uncertainty in Income Taxes," FASB Interpretation No. 48, July 13, 2006), pertaining to Acquired Fund (collectively, **"Work Papers"**) for all fiscal and taxable periods ended on or before March 31, 2025 and, if relevant, for the period from April 1, 2025 through the Effective Time.

3.6 At the Closing, each Investment Company, on behalf of its Fund, shall deliver to the other, on behalf of its Fund (a) bills of sale, checks, assignments, share certificates, receipts, and/or other documents the other Investment Company or its counsel reasonably requests and (b) a Certificate executed in its name by its President or other duly authorized officer in form and substance satisfactory to the recipient, and dated the Effective Time, to the effect that the representations and warranties it made in this Agreement are true and correct at the Effective Time except as they may be affected by the transactions contemplated hereby.

3.7 Each of the Acquiring Fund Advisor and the Acquired Fund Advisor will agree in writing to issue, and the substance of, any press releases or other public statements with respect to the Closing, this Agreement or the Reorganization.

**<u>4. REPRESENTATIONS AND WARRANTIES</u>**

<br>4.1 Acquired Fund Trust, on Acquired Fund's behalf, represents and warrants to Acquiring Fund Trust, on Acquiring Fund's behalf, as follows:

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(a) Acquired Fund Trust (1) is a statutory trust that is duly organized, validly existing, and in good standing under Delaware law, and its Certificate of Trust has been duly filed in the office of the Secretary of State of Delaware (**"State** **Secretary"**), (2) is duly registered under the 1940 Act as an open-end management investment company; and (3) has the power to own all its properties and assets and to carry on its business as described in its current registration statement on Form N-1A;

(b) Acquired Fund is a duly established and designated series of Acquired Fund Trust;

(c) Acquired Fund Trust's execution, delivery, and performance of this Agreement have been duly authorized at the date hereof by all necessary action on the part of its Board; and this Agreement constitutes a valid and legally binding obligation of Acquired Fund Trust, with respect to Acquired Fund, enforceable in accordance with its terms, subject to the effect of bankruptcy, insolvency, fraudulent transfer, reorganization, receivership, moratorium, and other laws affecting the rights and remedies of creditors generally and general principles of equity;

(d) At the Effective Time, Acquired Fund Trust will have good and marketable title to the Assets for Acquired Fund's benefit and full right, power, and authority to sell, assign, transfer, and deliver the Assets hereunder free of any liens or other encumbrances (except securities that are subject to "securities loans," as referred to in section 851(b)(2), or that are restricted as to resale by their terms); and on delivery and payment for the Assets, Acquiring Fund Trust, on Acquiring Fund's behalf, will acquire good and marketable title thereto, subject to no restrictions on the full transfer thereof, including restrictions that might arise under the Securities Act of 1933, as amended (**"1933 Act"**);

(e) Acquired Fund Trust, with respect to Acquired Fund, is not currently engaged in, and its execution, delivery, and performance of this Agreement and consummation of the Reorganization will not result in, (1) a conflict with or material violation of any provision of its Third Amended and Restated Declaration of Trust dated August 20, 2025 (**"Acquired Fund Trust's Declaration"**) or Amended and Restated Bylaws dated August 20, 2025, or any agreement, indenture, instrument, contract, lease, or other undertaking (each, an **"Undertaking"**) to which Acquired Fund Trust, on Acquired Fund's behalf, is a party or by which it is bound or (2) the acceleration of any obligation, or the imposition of any penalty, under any Undertaking, judgment, or decree to which Acquired Fund Trust, on Acquired Fund's behalf, is a party or by which it is bound;

(f) At or before the Effective Time, either (1) all material contracts and other commitments of or applicable to Acquired Fund Trust with respect to the Acquired Fund (other than this Agreement and certain investment contracts, including options, futures, forward contracts, and swap agreements) will terminate, or (2) provision for discharge and/or Acquiring Fund's assumption of any liabilities of Acquired Fund thereunder will be made, without either Fund's incurring any penalty with respect thereto and without diminishing or releasing any rights Acquired Fund Trust may have had with respect to actions taken or omitted or to be taken by any other party thereto before the Closing;

(g) No material litigation, administrative proceeding, action, or investigation of or before any court, governmental body, or arbitrator is presently known to be pending or, to Acquired Fund Trust's best knowledge, threatened against Acquired Fund Trust, with respect to Acquired Fund or any of its properties or assets attributable or allocable to Acquired Fund, that, if adversely determined, would materially and adversely affect Acquired Fund's financial condition or the conduct of its business; and Acquired Fund Trust, on Acquired Fund's behalf, knows of no facts that might form the basis for the institution of any such material litigation, proceeding, action, or investigation and is not known to be a party to or subject to the provisions of any order, decree, judgment, or award of any court, governmental body, or arbitrator that materially and adversely affects Acquired Fund's business or Acquired Fund Trust's ability to consummate the transactions contemplated hereby;

(h) Acquired Fund has no known liabilities of a material nature, contingent or otherwise, other than those that are shown as belonging to it on its statement of assets and liabilities as of March 31, 2025, and those incurred in the ordinary course of business as an investment company since such date. Acquired Fund's Statement of Assets and Liabilities, Schedule of Investments, Statement of Operations, and Statement of Changes in Net Assets (each, a **"Statement"**) at and for the fiscal year (in the case of the last Statement, for the two fiscal years) ended March 31, 202[5], have been audited by PricewaterhouseCoopers LLP, the independent registered public accounting firm for the Acquired Fund for the same period, and are in accordance with generally accepted accounting principles consistently applied in the United States (**"GAAP"**); and those Statements (copies of which Acquired Fund Trust has furnished to Acquiring Fund Trust), present fairly, in all material respects, Acquired Fund's financial condition at their respective dates in accordance with GAAP and the results of its operations and changes in its net assets for the periods then ended, and there are no known contingent liabilities of Acquired Fund required to be reflected on a balance sheet (including the notes thereto) in accordance with GAAP at either such date that are not disclosed therein;

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(i) Since March 31, 2025, there has not been any material adverse change in Acquired Fund's financial condition, assets, liabilities, or business, other than changes occurring in the ordinary course of business, or any incurrence by Acquired Fund of indebtedness maturing more than one year from the date that indebtedness (other than indebtedness incurred in connection with certain investment contracts including options, futures, forward and swap contracts) was incurred; for purposes of this subparagraph, a decline in NAV per Acquired Fund Share due to declines in market values of securities Acquired Fund holds, the discharge of Acquired Fund liabilities, distributions of net investment income and net realized capital gains, changes in portfolio securities, or the redemption of Acquired Fund Shares by its shareholders will not constitute a material adverse change;

(j) All federal and other tax returns, dividend reporting forms, and other tax-related reports (collectively, **"Returns"**) of Acquired Fund required by law to have been filed by the Effective Time (taking into account any properly and timely filed extensions of time to file) have been or will, prior to the Effective Time, be filed and are or will be correct in all material respects, and all federal and other taxes shown as due or required to be shown as due on those Returns will have been paid or provision will have been made for the payment thereof; to the best of Acquired Fund Trust's knowledge, no such Return is currently under audit and no assessment has been asserted with respect to those Returns;

(k) Acquired Fund (1) is in compliance in all material respects with all applicable Regulations pertaining to (a) the reporting of dividends and other distributions with respect to, and redemptions of, its shares, (b) withholding in respect thereof, and (c) shareholder basis reporting, (2) has withheld in respect of those dividends and other distributions and paid to the proper taxing authorities all taxes required to be withheld, and (3) is not liable for any material penalties that could be imposed thereunder;

(l) Acquired Fund is not classified as a partnership, and instead is classified as an association that is taxable as a corporation, for federal tax purposes and either has elected the latter classification by filing Form 8832 with the Internal Revenue Service (**"Service"**) or is a "publicly traded partnership" (as defined in section 7704(b)) that is treated as a corporation; Acquired Fund is a "fund" (as defined in section 851(g)(2), eligible for treatment under section 851(g)(1)); for each taxable year of its operation (including its current taxable year ending on the Effective Time), Acquired Fund has met (and for its current taxable year ending on the Effective Time will meet) the requirements of Part I of Subchapter M of Chapter 1 of Subtitle A of the Code ("Subchapter M") for qualification as a "regulated investment company" (as defined in section 851(a)(1)) (**"RIC"**) and has been (and for its current taxable year ending on the Effective Time will be) eligible to and has computed its federal income tax under section 852; Acquired Fund has not at any time since its inception been liable for, and is not now liable for, any material income tax pursuant to section 852; and Acquired Fund has no earnings and profits accumulated in any taxable year in which the provisions of Subchapter M did not apply to it;

(m) All issued and outstanding Acquired Fund Shares are, and at the Effective Time will be, duly and validly issued and outstanding, fully paid, and non-assessable by Acquired Fund Trust and have been offered and sold in every state, all U.S. Territories and the District of Columbia in compliance in all material respects with applicable registration requirements of the 1933 Act and state securities laws; all issued and outstanding Acquired Fund Shares will, at the Effective Time, be held by the persons and in the amounts set forth on Acquired Fund's shareholder records (as provided in the Certificate to be delivered pursuant to paragraph 3.3); and Acquired Fund does not have outstanding any options, warrants, or other rights to subscribe for or purchase any Acquired Fund Shares, nor are there outstanding any securities convertible into any Acquired Fund Shares;

(n) Acquired Fund incurred the Liabilities, which are associated with the Assets, in the ordinary course of its business;

(o) Acquired Fund is not under the jurisdiction of a court in a "title 11 or similar case" (as defined in section 368(a)(3)(A));

(p) On the date on which they were issued, on the effective date of the Registration Statement (as defined in paragraph 4.3(a)), at the time of the Shareholders Meeting (as defined in paragraph 5.2), and at the Effective Time, Acquired Fund's current prospectus and statement of additional information did and will (1) conform in all material respects to the applicable requirements of the 1933 Act and the 1940 Act and the rules and regulations of the Commission thereunder and (2) not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (**"Untrue Statement or Omission"**);

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(q) The information to be furnished by Acquired Fund Trust for use in, as applicable, no-action letters, applications for orders, the Registration Statement, proxy materials, and other documents filed or to be filed with any federal, state, or local regulatory authority (including the Financial Industry Regulatory Authority, Inc. (**"FINRA"**)) that may be necessary in connection with the transactions contemplated hereby will be accurate and complete in all material respects and will comply in all material respects with federal securities laws and other laws and regulations; and written information provided by Acquired Fund Trust for inclusion in the Registration Statement (other than written information provided by Acquiring Fund Trust for inclusion therein) will, on its effective date, at the Effective Time, and at the time of the Shareholders Meeting, not contain any Untrue Statement or Omission;

(r) Acquired Fund Trust's Declaration permits Acquired Fund Trust to vary its investment; Acquired Fund Trust does not have a fixed pool of assets; and each series thereof (including Acquired Fund) is a managed portfolio of securities, and Acquired Fund Advisor has the authority to buy and sell securities for Acquired Fund;

(s) Acquired Fund's investment operations from inception to the date hereof have been in compliance in all material respects with the investment policies and investment restrictions set forth in its prospectus and statement of additional information, as amended or supplemented from time to time, except as previously disclosed in writing to Acquiring Fund Trust;

(t) The Acquiring Fund Shares to be delivered to Acquired Fund Trust hereunder are not being acquired for the purpose of making any distribution thereof, other than in accordance with the terms hereof;

(u) Acquired Fund's minute books and similar records made available to Acquiring Fund Trust prior to the execution hereof contain a true and complete record in all material respects of all material action taken at all meetings and by all written consents in lieu of meetings of the shareholders and of its Board and any committees of its Board; Acquired Fund's shareholder records so made available accurately reflect all record transfers in Acquired Fund's shares prior to the execution of this Agreement; and any other books and records of Acquired Fund so made available are true and correct in all material respects and contain no material omissions with respect to Acquired Fund's business and operations;

(v) Acquired Fund Trust has maintained with respect to Acquired Fund, in all material respects, all books and records required of a registered investment company in compliance with the requirements of section 31 of the 1940 Act and rules thereunder, and those books and records are true and correct in all material respects;

(w) Acquired Fund Trust has adopted and implemented written policies and procedures in accordance with Rule 38a-1 under the 1940 Act;

(x) Acquired Fund does not have any unamortized or unpaid organizational fees or expenses;

(y) None of the compensation received from Acquired Fund, Acquired Fund Advisor, or any "affiliated person" (as defined in section 2(a)(3) of the 1940 Act) of or person related to (collectively, an **"Affiliate"**) either of them (each, an **"Acquired Fund Group Member"**) by any Shareholder who or that is an employee of or service provider to Acquired Fund will be separate consideration for, or allocable to, any of the Acquired Fund Shares that Shareholder holds; none of the Acquiring Fund Shares any such Shareholder receives will be separate consideration for, or allocable to, any employment agreement, investment advisory agreement, or other service agreement with any Acquired Fund Group Member; and the compensation paid to any such Shareholder by any Acquired Fund Group Member will be for services actually rendered and will be commensurate with amounts paid to third parties bargaining at arm's-length for similar services;

(z) No expenses incurred by Acquired Fund or on its behalf in connection with the Reorganization will be paid or assumed by any Acquired Fund Group Member (other than Acquired Fund) or, to Acquired Fund Trust's knowledge, any other person unless those expenses are solely and directly related to the Reorganization (determined in accordance with the guidelines set forth in Rev. Rul. 73-54, 1973-1 C.B. 187) (**"Reorganization Expenses"**), and no cash or property other than Acquiring Fund Shares will be transferred to Acquired Fund or any of its shareholders by any Acquired Fund Group Member or, to Acquired Fund Trust's knowledge, any other person with the intention that it be used to pay any expenses (even Reorganization Expenses) thereof; and

(aa) Acquired Fund Trust is undertaking the Reorganization for bona fide business purposes (and not a purpose to avoid federal income tax); and

(bb) Pursuant to the Reorganization, Acquired Fund will transfer to Acquiring Fund, and Acquiring Fund will acquire, at least 90% of the fair market value of the net assets, and at least 70% of the fair market value of the gross assets, Acquired Fund held immediately before the Reorganization; for the purposes of the foregoing, any amounts Acquired Fund uses to pay its Reorganization Expenses and to make redemptions and distributions immediately before the Reorganization (except (1) redemptions pursuant to the 1940 Act and (2) dividends and other distributions declared and paid to ensure Acquired Fund's continuing qualification as a RIC and to avoid the imposition of fund-level tax) will be included as assets it held immediately before the Reorganization;

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4.2 Acquiring Fund Trust, on Acquiring Fund's behalf, represents and warrants to Acquired Fund Trust, on Acquired Fund's behalf, as follows:

(a) Acquiring Fund Trust (1) is a trust operating under a written instrument or declaration of trust, the beneficial interest in which is divided into transferable shares, that is duly created, validly existing, and in good standing under the laws of the Commonwealth of Massachusetts (**"Massachusetts"**), and its Amended and Restated Declaration of Trust, dated August 20, 2019 (**"Declaration"**), is on file with the Secretary of Massachusetts, (2) is duly registered under the 1940 Act as an open-end management investment company, and (3) has the power to own all its properties and assets and to carry on its business as described in its current registration statement on Form N-1A;

(b) Acquiring Fund is a duly established and designated series of Acquiring Fund Trust;

(c) Acquiring Fund Trust's execution, delivery, and performance of this Agreement have been duly authorized at the date hereof by all necessary action on the part of its Board; and this Agreement constitutes a valid and legally binding obligation of Acquiring Fund Trust, with respect to Acquiring Fund, enforceable in accordance with its terms, subject to the effect of bankruptcy, insolvency, fraudulent transfer, reorganization, receivership, moratorium, and other laws affecting the rights and remedies of creditors generally and general principles of equity;

(d) No consideration other than Acquiring Fund Shares (and Acquiring Fund's assumption of the Liabilities) will be issued in exchange for the Assets and assumption of the Liabilities in the Reorganization;

(e) Acquiring Fund Trust, with respect to Acquiring Fund, is not currently engaged in, and its execution, delivery, and performance of this Agreement and consummation of the Reorganization will not result in, (1) a conflict with or material violation of any provision of Massachusetts law, the Declaration or Acquiring Fund Trust's Bylaws, or any Undertaking to which Acquiring Fund Trust, on Acquiring Fund's behalf, is a party or by which it is bound or (2) the acceleration of any obligation, or the imposition of any penalty, under any Undertaking, judgment, or decree to which Acquiring Fund Trust, on Acquiring Fund's behalf, is a party or by which it is bound;

(g) No litigation, administrative proceeding, action, or investigation of or before any court, governmental body, or arbitrator is presently pending or, to Acquiring Fund Trust's knowledge, threatened against Acquiring Fund Trust, with respect to Acquiring Fund or any of its properties or assets attributable or allocable to Acquiring Fund, that, if adversely determined, would materially and adversely affect Acquiring Fund's financial condition or the conduct of its business; and Acquiring Fund Trust, on Acquiring Fund's behalf, knows of no facts that might form the basis for the institution of any such litigation, proceeding, action, or investigation and is not a party to or subject to the provisions of any order, decree, judgment, or award of any court, governmental body, or arbitrator that materially and adversely affects Acquiring Fund's business or Acquiring Fund Trust's ability to consummate the transactions contemplated hereby;

(h) Acquiring Fund's Statements at and for the fiscal year (in the case of the Statement of Changes in Net Assets, for the two fiscal years) ended August 31, 2024, have been audited by PricewaterhouseCoopers LLP and are in accordance with GAAP; those Statements present fairly, in all material respects, Acquiring Fund's financial condition at that date in accordance with GAAP and the results of its operations and changes in its net assets for the period(s) then ended; and, to Acquiring Fund Trust's management's best knowledge and belief, there are no known contingent liabilities of Acquiring Fund required to be reflected on a Statement of Assets and Liabilities (including the notes thereto) in accordance with GAAP at that date that are not disclosed therein;

(i) Since September 1, 2025, there has not been any material adverse change in Acquiring Fund's financial condition, assets, liabilities, or business, other than changes occurring in the ordinary course of business, or any incurrence by Acquiring Fund of indebtedness maturing more than one year from the date that indebtedness was incurred; for purposes of this representation and warranty, a decline in Acquiring Fund's NAV due to declines in market values of securities Acquiring Fund holds, the discharge of Acquiring Fund's liabilities, or the redemption of Acquiring Fund Shares by its shareholders will not constitute a material adverse change;

<br>(j) All Returns of Acquiring Fund required by law to have been filed by the Effective Time (taking into account any properly and timely filed extensions of time to file) will have been, or will, prior to the Effective Time be filed and are or will be correct in all material respects, and all federal and other taxes shown as due or required to be shown as due on those Returns will have been paid or provision will have been made for the payment thereof except for amounts that alone or in the aggregate would not reasonably be expected to have a material adverse effect; to the best of Acquiring Fund Trust's knowledge, no such Return is currently under audit and no assessment has been asserted with respect to those Returns; and Acquiring Fund (a) is in compliance in all material respects with all applicable Regulations pertaining to (1) the reporting of dividends and other distributions on and redemptions of its shares, (2) withholding in respect thereof, and (3) shareholder basis reporting, (b) has withheld in respect of dividends and other distributions and paid to the proper taxing authorities all taxes required to be withheld, and (c) is not liable for any material penalties that could be imposed thereunder;

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(k) Acquiring Fund is not classified as a partnership, and instead is classified as an association that is taxable as a corporation, for federal tax purposes and either has elected the latter classification by filing Form 8832 with the IRS or is a "publicly traded partnership" (as defined in section 7704(b)) that is treated as a corporation; Acquiring Fund is an "investment company" (as defined in section 368(a)(2)(F)(iii)) and a "fund" (as defined in section 851(g)(2), eligible for treatment under section 851(g)(1)); Acquiring Fund has elected to be a RIC; for each taxable year of its operation (including the taxable year that includes the Effective Time ("current year")), Acquiring Fund has met (and for the current year will meet) the requirements of Subchapter M for qualification and treatment as a RIC and has been (and for the current year will be) eligible to and has computed (and for the current year will compute) its federal income tax under section 852; Acquiring Fund will continue to meet all those requirements for the current year and intends to continue to do so, and to continue to be eligible to and to so compute its federal income tax, for succeeding taxable years; Acquiring Fund has not at any time since its inception been liable for, and is not now liable for, any material income or excise tax pursuant to sections 852 or 4982; and Acquiring Fund has no earnings and profits accumulated in any taxable year in which the provisions of Subchapter M did not apply to it;

(l) Acquiring Fund is in the same line of business as Acquired Fund was in preceding the Reorganization, for purposes of section 1.368-1(d)(2) of the Regulations, and did not enter into that line of business as part of the plan of reorganization; and following the Reorganization, Acquiring Fund will continue, and has no plan or intention to change, that line of business;

(m) At the Effective Time, Acquiring Fund (1) will not have modified any of its Investment Criteria as part of the plan of reorganization and (2) will not have any plan or intention to change any of its Investment Criteria after the Reorganization;

(n) Following the Reorganization, Acquiring Fund will (1) continue Acquired Fund's "historic business" (within the meaning of section 1.368-1(d)(2) of the Regulations) and (2) use a significant portion of Acquired Fund's "historic business assets" (within the meaning of section 1.368-1(d)(3) of the Regulations) in a business; moreover, Acquiring Fund (3) has no plan or intention to sell or otherwise dispose of a significant part of the Assets, except for dispositions made in the ordinary course of that business and dispositions necessary to maintain its status as a RIC, and (4) expects to retain substantially all the Assets in the same form as it receives them in the Reorganization, unless and until subsequent investment circumstances suggest the desirability of change or it becomes necessary to make dispositions thereof to maintain that status;

(o) Acquiring Fund does not directly or indirectly own, nor at the Effective Time will it directly or indirectly own, nor has it directly or indirectly owned at any time during the past five years, any Acquired Fund Shares;

(p) Acquiring Fund has no plan or intention to issue additional Acquiring Fund Shares following the Reorganization, except for shares issued in the ordinary course of its business as a series of an open-end investment company; nor will Acquiring Fund or any person Related to it have any plan or intention at the Effective Time to acquire or redeem any Acquiring Fund Shares issued in the Reorganization either directly or through any transaction, agreement, or arrangement with any other person except for redemptions Acquiring Fund will make as such a series pursuant to the 1940 Act;

(q) Before or in the Reorganization, neither Acquiring Fund nor any person Related to it will have acquired, directly or through any transaction, agreement, or arrangement with any other person, Acquired Fund Shares with consideration other than Acquiring Fund Shares;

(r) The Acquiring Fund Shares to be issued and delivered to Acquired Fund, for the Shareholders' accounts, pursuant to the terms hereof, (1) will at the Effective Time have been duly authorized and duly registered under the federal securities laws, and appropriate notices respecting them will have been duly filed under applicable state securities laws, and (2) when so issued and delivered, will be duly and validly issued and outstanding Acquiring Fund Shares and will be fully paid and non-assessable by Acquiring Fund Trust;

(s) There is no plan or intention for Acquiring Fund to be terminated, dissolved, or merged into another business or statutory trust or a corporation or any "fund" thereof (as defined in section 851(g)(2)) following the Reorganization;

(t) Assuming satisfaction of the condition in paragraph 4.1(l), immediately after the Reorganization (1) not more than 25% of the value of Acquiring Fund's total assets (excluding cash, cash items, and Government securities) will be invested in the stock and securities of any one issuer and (2) not more than 50% of the value of those assets will be invested in the stock and securities of five or fewer issuers; provided that a proportionate share of the assets of any RIC in which Acquiring Fund invests (and not the securities issued by the RIC itself) shall be taken into account for this purpose;

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(u) All issued and outstanding Acquiring Fund Shares are, and at the Effective Time will be, duly and validly issued and outstanding, fully paid, and non-assessable by Acquiring Fund Trust and have been offered and sold in every state and the District of Columbia in compliance in all material respects with applicable registration requirements of the 1933 Act and state securities laws; Acquiring Fund does not have outstanding any options, warrants, or other rights to subscribe for or purchase any Acquiring Fund Shares, nor are there outstanding any securities convertible into any Acquiring Fund Shares; and the Acquiring Fund Shares to be issued and delivered to Acquired Fund, for the Shareholders' accounts, pursuant to the terms hereof, (a) will have been duly authorized by Acquiring Fund Trust and duly registered under the federal securities laws (and appropriate notices respecting them will have been duly filed under applicable state securities laws) at the Effective Time and (b) when so issued and delivered, will be duly and validly issued and outstanding Acquiring Fund Shares, fully paid and non-assessable by Acquiring Fund Trust;

(v) On the date on which they were issued, on the effective date of the Registration Statement, at the time of the Shareholders Meeting, and at the Effective Time, Acquiring Fund Trust's Pro/SAI including Acquiring Fund and the prospectus included in the Registration Statement did and will (a) conform in all material respects to the applicable requirements of the 1933 Act and the 1940 Act and the rules and regulations of the Commission thereunder and (b) not contain any Untrue Statement or Omission; provided that the foregoing will not apply to Untrue Statements or Omissions from that prospectus made in reliance on and in conformity with written information furnished by the Acquired Fund Trust for use therein;

(w) Immediately after the Effective Time, Acquiring Fund will not be under the jurisdiction of a court in a "title 11 or similar case" (as defined in section 368(a)(3)(A));

(x) The information to be furnished by Acquiring Fund Trust for use in no-action letters, applications for orders, registration statements, proxy materials, and other documents filed or to be filed with any federal, state, or local regulatory authority (including FINRA) that may be necessary in connection with the transactions contemplated hereby will be accurate and complete in all material respects and will comply in all material respects with federal securities laws and other laws and regulations; and the Registration Statement (other than written information provided by Acquired Fund Trust for inclusion therein) will, on its effective date, at the Effective Time, and at the time of the Shareholders Meeting, not contain any Untrue Statement or Omission;

(y) The Declaration permits Acquiring Fund Trust to vary its shareholders' investment; Acquiring Fund Trust does not have a fixed pool of assets; and each series thereof (including Acquiring Fund after it commences operations) is (or will be) a managed portfolio of securities, and Acquiring Fund Advisor and each investment sub-advisor thereof have (and Acquired Fund Advisor, as Acquiring Fund's investment sub-advisor, will have) the authority to buy and sell securities for it;

(z) The Acquiring Fund's investment operations from inception to the date hereof have been in compliance in all material respects with the investment policies and investment restrictions set forth in its Pro/SAI, except as previously disclosed in writing to Acquiring Fund Trust;

(aa) The Acquiring Fund Trust has adopted and implemented written policies and procedures in accordance with Rule 38a-1 under the 1940 Act;

(bb) None of the compensation received from Acquiring Fund, Acquiring Fund Advisor, or any Affiliate of either of them (each, a **"Acquiring Fund Group Member"**) by any Shareholder who or that is an employee of or service provider to Acquired Fund will be separate consideration for, or allocable to, any of the Acquired Fund Shares that Shareholder holds; none of the Acquiring Fund Shares any such Shareholder receives will be separate consideration for, or allocable to, any employment agreement, investment advisory agreement, or other service agreement with any Acquiring Fund Group Member; and the compensation paid to any such Shareholder by any Acquiring Fund Group Member will be for services actually rendered and will be commensurate with amounts paid to third parties bargaining at arm's-length for similar services;

(cc) No expenses incurred by Acquired Fund or on its behalf in connection with the Reorganization will be paid or assumed by any Acquiring Fund Group Member or, to Acquiring Fund Trust's knowledge, any other person unless those expenses are Reorganization Expenses, and no cash or property other than Acquiring Fund Shares will be transferred to Acquired Fund or any of its shareholders by any Acquiring Fund Group Member or, to Acquiring Fund Trust's knowledge, any other person with the intention that it be used to pay any expenses (even Reorganization Expenses) thereof; and

(dd) Acquiring Fund Trust is undertaking the Reorganization for bona fide business purposes (and not a purpose to avoid federal income tax).

4.3 Each Investment Company, on its Fund's behalf, represents and warrants to the other Investment Company, on its Fund's behalf, as follows:

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<br>(a) No governmental consents, approvals, authorizations, or filings are required under the 1933 Act, the Securities Exchange Act of 1934, as amended, the 1940 Act, or state securities laws, and no consents, approvals, authorizations, or orders of any court are required, for its execution or performance of this Agreement on its Fund's behalf, except for (1) Acquiring Fund Trust's filing with the Commission of a registration statement on Form N-14 relating to the Acquiring Fund Shares issuable hereunder, and any supplement or amendment thereto, including therein a prospectus and proxy statement (**"Registration Statement"**), and (2) consents, approvals, authorizations, and filings that have been made or received or may be required after the Effective Time;

(b) The Acquired Fund Trust's management (1) is unaware of any plan or intention of Shareholders to redeem, sell, or otherwise dispose of (i) any portion of their Acquired Fund Shares before the Reorganization to any person Related to either Fund or (ii) any portion of the Acquiring Fund Shares they receive in the Reorganization to any person Related to Acquiring Fund, (2) does not anticipate dispositions of those Acquiring Fund Shares at the time of or soon after the Reorganization to exceed the usual rate and frequency of dispositions of shares in Acquired Fund as a series of an open-end investment company, and (3) does not anticipate that there will be extraordinary redemptions of Acquiring Fund Shares immediately following the Reorganization;

(c) The Shareholders will pay their own expenses (such as fees of personal investment or tax advisers for advice regarding the Reorganization), if any, incurred in connection with the Reorganization;

(d) The fair market value and "adjusted basis" (within the meaning of section 1011) of the Assets will equal or exceed the Liabilities to be assumed by Acquiring Fund and those to which the Assets are subject;

(e) At the Effective Time, there will be no intercompany indebtedness existing between the Funds that was issued, acquired, or settled at a discount;

(f) Pursuant to the Reorganization, Acquired Fund will transfer to Acquiring Fund, and Acquiring Fund will acquire, at least 90% of the fair market value of the net assets, and at least 70% of the fair market value of the gross assets, Acquired Fund held immediately before the Reorganization; for the purposes of the foregoing, any amounts Acquired Fund uses to pay its Reorganization Expenses and to make redemptions and distributions immediately before the Reorganization (except (1) redemptions pursuant to the 1940 Act and (2) dividends and other distributions declared and paid to ensure Acquired Fund's continuing qualification as a RIC and to avoid the imposition of fund-level tax) will be included as assets it held immediately before the Reorganization;

(g) The principal purpose of Acquiring Fund's assumption of the Liabilities is not avoidance of federal income tax on the transaction

**<u>5. COVENANTS</u>**

5.1 Acquired Fund Trust covenants to operate Acquired Fund's business in the ordinary course between the date hereof and the Effective Time, it being understood that such ordinary course of business will include purchases and sales of portfolio securities and other instruments, sales and redemptions of Acquired Fund Shares, and regular and customary periodic dividends and other distributions.

5.2 Acquired Fund Trust covenants to call and hold a special meeting of Acquired Fund's Shareholders to consider and act on this Agreement and to take all other action reasonably necessary to obtain approval of the transactions contemplated hereby (**"Shareholders Meeting"**).

5.3 Acquired Fund Trust covenants that it will assist Acquiring Fund Trust in obtaining information Acquiring Fund Trust reasonably requests concerning the beneficial ownership of Acquired Fund Shares.

5.4 Acquired Fund Trust covenants that it will turn over its books and records pertaining to Acquired Fund (including all tax books and records and all books and records required to be maintained under the 1940 Act and the rules and regulations thereunder) to Acquiring Fund Trust at the Closing (though it may keep copies of any records).

5.5 Each Investment Company covenants to cooperate with the other in preparing the Registration Statement in compliance with applicable federal and state securities laws.

5.6 Each Investment Company covenants that it will, from time to time, as and when reasonably requested by the other, execute and deliver or cause to be executed and delivered all assignments and other instruments, and will take or cause to be taken any further action(s), the other Investment Company deems reasonably necessary or desirable in order to vest in, and confirm to, (a) Acquiring Fund Trust, on Acquiring Fund's behalf, title to and possession of all the Assets and assumption of all the Liabilities, and (b) Acquired Fund Trust, on Acquired Fund's behalf, title to and possession of the Acquiring Fund Shares to be delivered hereunder, and otherwise to carry out the intent and purpose hereof.

5.7 Acquiring Fund Trust covenants to use all reasonable efforts to obtain the approvals and authorizations required by the 1933 Act, the 1940 Act, and applicable state securities laws it deems appropriate to continue Acquiring Fund's operations after the Effective Time.

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5.8 Acquired Fund Trust covenants that, as promptly as practicable, but in any case within 60 days, after the Effective Time, it will furnish to Acquiring Fund Trust, in a form reasonably satisfactory thereto, a Certificate stating Acquired Fund's earnings and profits for federal income tax purposes and any capital loss carryovers and other items that will be carried over to Acquiring Fund pursuant to section 381.

5.9 It is each Investment Company's intention that the Reorganization will qualify as a "reorganization" (as defined in section 368(a)(1)), and in furtherance thereof, each Investment Company covenants that it will not take any action or cause any action to be taken (including the filing of any tax return) that is inconsistent with that treatment or results in the failure of the Reorganization to so qualify.

5.10 Acquired Fund Trust covenants to cause the Acquired Fund to make a pro rata distribution by class of all the Acquiring Fund Shares the Acquired Fund receives in the Reorganization to the Shareholders in complete liquidation of Acquired Fund.

5.11 Acquiring Fund Trust covenants that it has engaged a transfer agent that will open accounts on Acquiring Fund's shareholder records in the Shareholders' names and transferring those Acquiring Fund Shares thereto.

5.12 Subject to this Agreement, each Investment Company covenants to take or cause to be taken all actions, and to do or cause to be done all things, reasonably necessary, proper, or advisable to consummate and effectuate the transactions contemplated hereby.

5.13 The Acquired Fund shall have declared and paid a distribution or distributions prior to the Effective Time that, together with all previous distributions, shall have the effect of distributing to its shareholders (i) all of its investment company taxable income, all of its net tax exempt income, if any, and all of its net realized capital gains, if any, for the period from the close of its last taxable year to the Effective Time; and (ii) any undistributed investment company taxable income and net realized capital gains from any prior taxable year if still timely under section 855, to the extent not otherwise already distributed.

<br>**<u>6. CONDITIONS PRECEDENT</u>**

Each Investment Company's obligations hereunder shall be subject to (a) performance by the other Investment Company of all its obligations to be performed hereunder at or before the Closing, (b) all representations and warranties of the other Investment Company contained herein being true and correct in all material respects at the date hereof and, except as they may be affected by the transactions contemplated hereby, at the Effective Time, with the same force and effect as if made at that time, and (c) the following further conditions that, at or before that time:

6.1 This Agreement and the transactions contemplated hereby shall have been duly adopted and approved by both Boards and by Acquired Fund's Shareholders at the Shareholders Meeting;

6.2 All necessary filings shall have been made with the Commission and state securities authorities, and no order or directive shall have been received that any other or further action is required to permit the Investment Companies to carry out the transactions contemplated hereby. The Registration Statement shall have become effective under the 1933 Act, no stop orders suspending the effectiveness thereof shall have been issued, and, to each Investment Company's best knowledge, no investigation or proceeding for that purpose shall have been instituted or be pending, threatened, or contemplated under the 1933 Act or the 1940 Act. The Commission shall not have issued an unfavorable report with respect to the Reorganization under section 25(b) of the 1940 Act nor instituted any proceedings seeking to enjoin consummation of the transactions contemplated hereby under section 25(c) of the 1940 Act. All consents, orders, and permits of federal, state, and local regulatory authorities (including the Commission and state securities authorities) either Investment Company deems necessary to permit consummation, in all material respects, of the transactions contemplated hereby shall have been obtained, except where failure to obtain the same would not involve a risk of a material adverse effect on either Fund's assets or properties;

6.3 At the Effective Time, no action, suit, or other proceeding shall be pending (or, to either Investment Company's best knowledge, threatened to be commenced) before any court, governmental agency, or arbitrator in which it is sought to enjoin the performance of, restrain, prohibit, affect the enforceability of, or obtain damages or other relief in connection with, the transactions contemplated hereby;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

6.4 The Investment Companies shall have received an opinion of K&L Gates LLP (**"Counsel"**) as to the federal income tax consequences mentioned below (**"Tax Opinion"**). In rendering the Tax Opinion, Counsel may rely as to factual matters, exclusively and without independent verification, on the representations and warranties made in this Agreement, which Counsel may treat as representations and warranties made to it (that, notwithstanding paragraph 8, shall survive the Closing), and in separate letters, if Counsel requests, addressed to it (collectively, **"Representations")** and the Certificates delivered pursuant to paragraph 3.6(b). The Tax Opinion shall be substantially to the effect that based on the facts and assumptions stated therein and conditioned on the Representations' being true and complete at the Effective Time and consummation of the Reorganization in accordance with this Agreement (without the waiver or modification of any terms or conditions hereof and without taking into account any amendment hereof that Counsel has not approved) for federal income tax purposes:

(a) Acquiring Fund's acquisition of the Assets in exchange solely for Acquiring Fund Shares and its assumption of the Liabilities, followed by Acquired Fund's distribution of those shares pro rata to the Shareholders actually or constructively in exchange for their Acquired Fund Shares and in complete liquidation of Acquired Fund, will qualify as a "reorganization" (as defined in section 368(a)(1)), and each Fund will be "a party to a reorganization" (within the meaning of section 368(b));

(b) Acquired Fund will recognize no gain or loss on the transfer of the Assets to Acquiring Fund in exchange solely for Acquiring Fund Shares and Acquiring Fund's assumption of the Liabilities or on the subsequent distribution of those shares to the Shareholders in exchange for their Acquired Fund Shares;

(c) Acquiring Fund will recognize no gain or loss on its receipt of the Assets in exchange solely for Acquiring Fund Shares and its assumption of the Liabilities;

(d) Acquiring Fund's basis in each Asset will be the same as Acquired Fund's basis therein immediately before the Reorganization, and Acquiring Fund's holding period for each Asset will include Acquired Fund's holding period therefor (except where Acquiring Fund's investment activities have the effect of reducing or eliminating an Asset's holding period);

(e) A Shareholder will recognize no gain or loss on the exchange of all of its Acquired Fund Shares solely for Acquiring Fund Shares (including fractional shares to which they may be entitled) pursuant to the Reorganization; and

(f) A Shareholder's aggregate basis in the Acquiring Fund Shares (including fractional shares to which they may be entitled) it receives in the Reorganization will be the same as the aggregate basis in its Acquired Fund Shares it actually or constructively surrenders in exchange for those Acquiring Fund Shares, and its holding period for those Acquiring Fund Shares (including fractional shares to which they may be entitled) will include, in each instance, its holding period for those Acquired Fund Shares, provided the Shareholder holds them as capital assets at the Effective Time.

<br>Notwithstanding subparagraphs (b) and (d), the Tax Opinion may state that no opinion is expressed as to the effect of the Reorganization on the Funds or any Shareholder with respect to any Asset as to which any unrealized gain or loss is required to be recognized for federal income tax purposes at the end of a taxable year or on the termination or transfer thereof under a mark-to-market system of accounting;

6.5 At any time before the Closing, either Investment Company may waive any of the foregoing conditions (except those set forth in paragraphs 6.1 and 6.4) if, in the judgment of its Board, that waiver will not have a material adverse effect on its Fund's shareholders' interests.

**<u>7. EXPENSES</u>**

Subject to complying with the representations and warranties contained in paragraph 4.1(z) and 4.2(cc), Acquired Fund Advisor and Acquiring Fund Advisor shall bear the expenses relating to the Reorganization (**"Reorganization Expenses"**) as set forth herein.

Acquiring Fund Advisor will bear 100% of the expenses relating to the Reorganization, including without limitation: (1) costs, including legal and accounting fees, associated with preparing, reviewing, and filing the Agreement and Acquired Fund's proxy materials, (2) expenses incurred in connection with printing and mailing Acquired Fund's proxy materials and the solicitation of proxies for the special meeting of Acquired Fund Shareholders, (3) transfer agent and custodian conversion costs, (4) costs of preparing and filing the Acquired Fund's prospectus supplement, (5) costs of preparing and filing the Acquiring Fund's registration statement, and (6) costs associated with any meeting of the Acquired Fund Trust Board or Acquiring Fund Trust Board.

Acquired Fund and Acquiring Fund will bear, as applicable, the costs of (i) buying and selling portfolio securities necessary to effect the Reorganization in instances where the securities may not be transferred in-kind; and (ii) transfer or stamp duties, such as those typically imposed in certain non-U.S. markets in connection with the transfer of portfolio securities to the Acquiring Fund.<br>Acquired Fund Advisor and Acquiring Fund Advisor shall each bear its own Reorganization Expenses not listed above, including for example, legal fees incurred by Acquired Fund Advisor or Acquiring Fund Adviser for their own business interests. Notwithstanding

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the foregoing, expenses shall be paid by the Fund directly incurring them if and to the extent that the payment thereof by another person would result in that Fund's disqualification as a RIC or would prevent the Reorganization from qualifying as a tax-free reorganization.<br>Acquiring Fund Advisor does not anticipate any indirect costs of the Reorganization, but it is anticipated that such indirect costs, if any, will be paid by the Acquiring Fund. An example of an indirect cost of a reorganization is additional auditor's fee resulting from testing of and review of disclosures in the annual report pertaining to the Reorganization. Notwithstanding the foregoing, expenses shall be paid by the Fund directly incurring them if and to the extent that the payment thereof by another person would result in that Fund's disqualification as a RIC or would prevent the Reorganization from qualifying as a tax-free reorganization.

**<u>8. ENTIRE AGREEMENT; NO SURVIVAL</u>**

This Agreement supersedes all previous correspondence and oral communications between the parties regarding the subject matter hereof and constitutes the only understanding with respect to such subject matter. Neither Investment Company has made any representation, warranty, agreement, or covenant not set forth herein, and this Agreement constitutes the entire agreement between the Investment Companies. Except for the provisions of paragraph 3.7, paragraphs 4.1(p) and (q), paragraphs 4.2(v) and 4.2(x), paragraph 7, paragraph 13, and as provided in paragraph 6.4, the representations, warranties, agreements, and covenants contained herein or in any document delivered pursuant hereto or in connection herewith shall not survive the Closing.

**<u>9. TERMINATION</u>**

This Agreement may be terminated with respect to the Reorganization at any time at or before the Closing:

9.1 By either Investment Company (a) in the event of the other Investment Company's material breach of any representation, warranty, agreement, or covenant contained herein to be performed at or before the Closing, (b) if a condition to its obligations has not been met and it reasonably appears that that condition will not or cannot be met, (c) if a governmental body issues an order, decree, or ruling having the effect of permanently enjoining, restraining, or otherwise prohibiting consummation of the Reorganization, or (d) if the Closing has not occurred on or before [ ], 2026, or such other date as to which the Investment Companies agree; or

9.2 By the Investment Companies' mutual agreement.

In the event of termination under paragraphs 9.1(c) or (d) or 9.2, neither Investment Company (nor its trustees, officers, or shareholders) shall have any liability to the other Investment Company.

<br>**<u>10. AMENDMENTS</u>**

The Investment Companies may amend, modify, or supplement this Agreement at any time in any manner they mutually agree on in writing, notwithstanding Acquired Fund's shareholders' approval thereof; provided that, following that approval no such amendment, modification, or supplement shall have a material adverse effect on the Shareholders' interests.

<br>**<u>11. SEVERABILITY</u>**

Any term or provision hereof that is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of that invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions hereof or affecting the validity or enforceability of any of the terms and provisions hereof in any other jurisdiction.

<br>**<u>12. NOTICES AND OTHER COMMUNICATIONS</u>**

Any notice or other communication under this Agreement must be in writing and shall be deemed given when it is delivered in person or sent by facsimile or electronic mail (with proof of receipt at the required facsimile number or email address), on the business day after the day on which it is delivered to a major nationwide overnight delivery service with instructions to make next business day delivery, or on the third business day after the day on which it is mailed by first class mail from within the United States of America, addressed as follows:

<br>If to Acquiring Fund Trust or Acquiring Fund Advisor:<br>American Beacon Funds<br>American Beacon Advisors, Inc

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220 E. Las Colinas Blvd., Suite 1200<br>Irving, Texas 75039<br>Email: legal@ambeacon.com <br>Attn: President with a copy to Chief Legal Officer

If to Acquired Fund Trust or Acquired Fund Advisor:<br>DoubleLine Funds Trust<br>DoubleLine Capital LP

2002 N. Tampa Street, Suite 200<br>Tampa, FL 33602<br>Email: Legal@doubleline.com<br>Attn: General Counsel

**<u>13. SECTION 15(f) OF THE 1940 ACT</u>**

The Acquiring Fund Advisor intends that the Transaction shall satisfy the applicable requirements of Section 15(f) of the 1940 Act. In this connection, the Acquiring Fund Advisor agrees that, for the minimum time periods specified in Section 15(f) of the 1940 Act in respect of transactions that are a subject of Section 15(f) of the 1940 Act, the Acquiring Fund Adviser shall use commercially reasonable efforts, subject to its fiduciary duties, not to cause (and to prevent their respective Affiliates from causing) a violation of Section 15(f) in connection with the Transaction. Without limiting the foregoing and, to the extent applicable, the Acquiring Fund Adviser, subject to compliance with its fiduciary duties, shall use commercially reasonable efforts to, take (or refrain from taking, as the case may be) or cause its Affiliates or the trustees or directors (as applicable) of the Acquiring Fund to, take (or refrain from taking, as the case may be) such actions as are necessary to ensure that: (a) for a period of not less than three (3) years after the Closing, no more than 25% of the members of the Board of the Acquiring Fund Trust shall be "interested persons" (as defined in the 1940 Act) of the Acquiring Fund Advisor, the Acquired Fund Advisor or any of their respective affiliates, and (b) for a period of not less than two (2) years after the Closing, neither the Acquiring Fund Advisor nor any of its affiliates shall impose an "unfair burden" (within the meaning of Section 15 of the 1940 Act, as interpreted from time to time by the Commission or its staff) on the Acquiring Fund as a result of the transactions contemplated by this Agreement or any express or implied terms, conditions or understandings applicable thereto.

**<u>14. MISCELLANEOUS</u>**

14.1 This Agreement shall be governed by and construed in accordance with the internal laws of Delaware, without giving effect to principles of conflicts of laws; provided that, in the case of any conflict between those laws and the federal securities laws, the latter shall govern.

14.2 Each Investment Company represents that there is no person who has dealt with it who, by reason of such dealings, is entitled to any broker's or finder's or other similar fee or commission arising out of the transactions contemplated by this Agreement.

14.3 All covenants, agreements, representations and warranties made under this Agreement and any certificates delivered pursuant to this Agreement shall be deemed to have been material and relied upon by each of the parties, notwithstanding any investigation made by them or on their behalf.

14.4 Nothing expressed or implied herein is intended or shall be construed to confer on or give any person, firm, trust, or corporation other than Acquiring Fund Trust, on the Acquiring Fund's behalf, or Acquired Fund Trust, on the Acquired Fund's behalf, and its respective successors and assigns any rights or remedies under or by reason of this Agreement. Neither this Agreement nor any right of any party under it may be assigned.

14.5 Notice is hereby given that this instrument is executed and delivered on behalf of each Investment Company's trustees or officers solely in their capacities as trustees or officers and not individually, and that each Investment Company's obligations hereunder are not binding on or enforceable against any of its trustees, officers, shareholders, or series other than the applicable Fund but are only binding on and enforceable against its property attributable to and held for the benefit of the applicable Fund (**"Fund's Property"**) and not its property attributable to and held for the benefit of any other series thereof. Each Investment Company, in asserting any rights or claims hereunder on its or the applicable Fund's behalf, shall look only to the other applicable Fund's Property in settlement of those rights or claims and not to the property of any other series of the other Investment Company or to those trustees, officers, or shareholders.

14.6 This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been executed by each Investment Company and delivered to the other Investment Company. The headings contained herein are for reference purposes only and shall not affect in any way the meaning or interpretation hereof.

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| | |
|:---|:---|
| IN WITNESS WHEREOF, each party has caused this Agreement to be executed and delivered by its duly authorized officer as of the day and year first written above. | IN WITNESS WHEREOF, each party has caused this Agreement to be executed and delivered by its duly authorized officer as of the day and year first written above. |
|  | DoubleLine Funds Trust, solely on behalf of its series DoubleLine Floating Rate Fund |
| By: |  |
| Name: |  |
| Title: |  |
|  | American Beacon Funds, solely on behalf of its series American Beacon DoubleLine Floating Rate Income Fund |
| By: |  |
| Name: |  |
| Title: |  |

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| |
|:---|
| <u>For purposes of paragraph 3.7 and paragraph 7 only:</u><br><u>DoubleLine Capital LP</u> |
| By: |
| Name: |
| Title: |
| <u>For purposes of paragraph 3.7, paragraph 7 and paragraph</u> <u>13 only:</u><br>AMERICAN BEACON ADVISORS, INC. |
| By: |
| Name: |
| Title: |

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**Appendix A-2:** **DoubleLine Select Income Fund (formerly, DoubleLine Infrastructure Income Fund)**

THIS AGREEMENT AND PLAN OF REORGANIZATION AND TERMINATION ("**Agreement**") is made as of XXXX XX, 2025, among DoubleLine Funds Trust, a Delaware statutory trust ("**Old Trust**"), on behalf of DoubleLine Select Income Fund (formerly, DoubleLine Infrastructure Income Fund) a segregated portfolio of assets ("**series**") thereof (the "**Old Fund**"); American Beacon Funds, a Massachusetts business trust ("**New Trust**"), on behalf of American Beacon DoubleLine Select Income Fund, a series thereof (the "**New Fund**"); and, solely for purposes of paragraph 2.8 and paragraph 6, DoubleLine Capital LP, the investment adviser for the Old Fund ("**Old Trust Adviser**"), and, solely for purposes of paragraph 2.8, paragraph 6, and paragraph 12, American Beacon Advisors, Inc., New Trust's investment adviser ("**New Trust Adviser**"). (Each of the Old Fund and New Fund is sometimes referred to herein as a "**Fund**," and each of Old Trust and New Trust is sometimes referred to herein as an "**Investment Company**.") Notwithstanding anything to the contrary contained herein it is understood and agreed that, (1) all agreements, covenants, representations, warranties, actions, and obligations described herein (collectively, "**Obligations**") of and by each Fund – and of and by the Investment Company of which that Fund is a series, on that Fund's behalf – shall be the Obligations of that Fund only, (2) all rights and benefits created hereunder in favor of a Fund shall inure to and be enforceable by the Investment Company of which that Fund is a series, on that Fund's behalf, and (3) in no event shall any other series of an Investment Company or the assets thereof be held liable with respect to the breach or other default by a Fund or the Investment Company of its Obligations set forth herein.

The Investment Companies wish to effect the reorganization described in section 368(a)(1)(F) of the Internal Revenue Code of 1986, as amended ("Code") (all "section" references herein are to the Code, unless otherwise noted), and each Investment Company intends this Agreement to be, and adopts it as, a "plan of reorganization" within the meaning of the regulations under the Code ("**Regulations**"). The reorganization will involve (1) the Old Fund transferring all of its assets to the New Fund in exchange solely for New Fund Shares (as defined below) and the New Fund's assumption of all of the Old Fund's Liabilities (as defined below), (2) distributing the New Fund Shares pro rata to the Old Fund's shareholders in exchange for their shares therein and in complete liquidation thereof (for federal tax purposes), and (3) terminating the Old Fund (all the foregoing transactions involving the Old Fund and the New Fund being referred to herein collectively as the (the "**Reorganization**"), all on the terms and conditions set forth herein.

With respect to each Reorganization, each Investment Company's board of trustees (each, a "Board"), in each case including a majority of its members who are not "interested persons" (as that term is defined in the Investment Company Act of 1940, as amended ("**1940 Act**")) ("**Non-Interested Persons**") of either Investment Company, (1) has duly adopted and approved this Agreement and the transactions contemplated hereby, (2) has duly authorized performance hereof on behalf of the Fund that is a series thereof (**"its Fund"**) by all necessary Board action, and (3) has determined that participation in the Reorganization is in the best interests of its Fund and that the interests of its Fund's existing shareholders (if any) will not be diluted as a result of the Reorganization.

The Old Fund has issued and outstanding two classes of shares, I Class shares (**"Old Fund I Class Shares"**) and N Class shares (**"Old** **Fund N Class Shares"** and, together with Old Fund I Class Shares, **"Old Fund Shares"**). Commencing at the Effective Time (as defined in paragraph 2.1), the New Fund will issue and have outstanding Y Class shares (**"New Fund Y Class Shares"**) and Investor Class shares (**"New Fund Investor Class Shares"**, and together with New Fund Y Class Shares, **"New Fund Shares"**). The rights and obligations of Old Fund I Class Shares and New Fund Y Class Shares are similar to each other, and the rights and obligations of Old Fund N Class Shares and New Fund Investor Class Shares are similar to each other.

In consideration of the mutual promises contained herein, the Investment Companies agree as follows:

**<u>1. PLAN OF REORGANIZATION AND TERMINATION</u>**

1.1 Subject to the requisite approval of Old Fund's shareholders and satisfaction of the terms and conditions set forth herein, Old Fund shall assign, sell, convey, transfer, and deliver all of its assets described in paragraph 1.2 (**"Assets"**) to New Fund. In exchange therefor, New Fund shall:

(a) issue and deliver to Old Fund the number of full and fractional (all references herein to "fractional" shares meaning fractions rounded to the fourth decimal place) (1) New Fund Y Class Shares having an aggregate net asset value ("NAV") equal to the Assets of the Old Fund attributable to the number of full and fractional Old Fund I Class Shares outstanding at the Effective Time less the value of the Liabilities (as defined below) attributable to such shares assumed by the New Fund at the Effective Time and (2) New Fund Investor Class Shares having an aggregate NAV equal to the Assets of the Old Fund attributable to the full and fractional Old Fund N Class Shares then outstanding less the value of the Liabilities attributable to such shares assumed by the New Fund at the Effective Time; and

(b) assume all of Old Fund's liabilities described in paragraph 1.3 (**"Liabilities"**).

Those transactions shall take place at the Closing (as defined in paragraph 2.1).

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1.2 The Assets shall consist of all assets, investments and property of every kind and nature – including, without limitation, all cash, cash equivalents, securities, commodities, warehouse receipts, futures interests, receivables (including interest and dividends receivable), claims and rights of action, rights to register shares under applicable securities laws, and books and records – of the Old Fund at the Effective Time, and any deferred and prepaid expenses shown as assets on Old Fund's books at that time.

1.3 The Liabilities shall consist of all of Old Fund's liabilities, debts, obligations, and duties of any kind, whether contingent, accrued, or otherwise, excluding Reorganization Expenses (as defined in paragraph 3.1(z)) borne by Old Trust Adviser and New Trust Adviser, as applicable, pursuant to paragraph 6. Notwithstanding the foregoing, Old Fund shall endeavor to discharge all of its known liabilities, debts, obligations, and duties that are or will become due before the Effective Time, other than those incurred in the ordinary course of business that are associated with assets of the Old Fund to be transferred to the New Fund, prior to Closing. Any such liabilities incurred prior to Closing in the ordinary course of business that are associated with the assets of the Old Fund to be transferred to the New Fund not so discharged and existing at Closing shall be assumed by the New Fund.

1.4 At or before the Closing, the New Fund shall redeem the Initial Shares (as defined in paragraph 5.5) for the price at which they are issued pursuant to that paragraph. At the Effective Time (or as soon thereafter as is reasonably practicable), Old Fund shall distribute all of the New Fund Shares it receives pursuant to paragraph 1.1(a) to its shareholders of record determined at that time (each, a **"Shareholder"**), in proportion to their Old Fund Shares then held of record of the relevant class and in constructive exchange therefor, and shall completely liquidate (which shall be treated as a complete liquidation of Old Fund for federal tax purposes, within the meaning of section 1.368-2(m)(1)(iv) of the Regulations). That distribution shall be accomplished by New Trust's transfer agent's opening accounts on New Fund's shareholder records in the Shareholders' names and transferring those New Fund Shares thereto. Pursuant to that transfer, each Shareholder's account shall be credited with the respective pro rata number of full and fractional New Fund Shares due to that Shareholder, by class (i.e., the account for each Shareholder that holds Old Fund I Class Shares shall be credited with the number of full and fractional New Fund Y Class Shares due that Shareholder, and the account for each Shareholder that holds Old Fund N Class Shares shall be credited with the number of full and fractional New Fund Investor Class Shares due that Shareholder). All issued and outstanding Old Fund Shares shall simultaneously be canceled on Old Fund's shareholder records. New Trust shall not issue certificates representing the New Fund Shares issued in connection with the Reorganization.

1.5 Any transfer taxes payable on the issuance and transfer of New Fund Shares in a name other than that of the registered holder on Old Fund's shareholder records of the Old Fund Shares actually or constructively exchanged therefor shall be paid by the transferee thereof, as a condition of that issuance and transfer.

1.6 Any reporting responsibility of Old Fund to a public authority, including the responsibility for filing regulatory reports, tax returns, and other documents with the Securities and Exchange Commission (**"Commission"**), any state securities commission, any federal, state, and local tax authorities, and any other relevant regulatory authority, is and shall remain its responsibility up to and including the date on which it is terminated.

1.7 After the Effective Time, Old Fund shall not conduct any business except in connection with its termination. As soon as reasonably practicable after distribution of the New Fund Shares pursuant to paragraph 1.4, but in all events within six months after the Effective Time Old Fund shall be terminated as a series of Old Trust.

**<u>2. CLOSING AND EFFECTIVE TIME</u>**

2.1 Unless the Investment Companies agree otherwise in writing, all acts necessary to consummate the Reorganization (**"Closing"**) shall be deemed to take place simultaneously as of immediately after the close of business (4:00 p.m., Eastern Time) on [February 6], 2026 (**"Effective Time"**). The Closing shall be held at New Trust's offices or at such other place as to which the Investment Companies agree.

2.2 The net asset value of the New Fund Shares to be delivered to the Old Fund, the value of the Assets attributable to the Old Fund Shares and the value of the Liabilities attributable to the Old Fund Shares to be assumed by the New Fund will in each case be determined as of the Effective Time by the New Fund, in cooperation with the Old Fund, pursuant to procedures customarily used by the New Trust in determining the fair market value of the New Fund's assets and liabilities.

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2.3 Old Trust shall cause the custodian of Old Fund's assets (**"Old Custodian"**) (a) to make Old Fund's portfolio securities available to New Trust (or to its custodian (**"New Custodian"**), if New Trust so directs), for examination, no later than five business days preceding the Effective Time, it being understood that such holdings may change prior to the Effective Time, and (b) to transfer and deliver the Assets at the Effective Time to the New Custodian for New Fund's account, as follows: (1) duly endorsed in proper form for transfer in such condition as to constitute good delivery thereof in accordance with the custom of brokers, (2) by book entry, in accordance with the Old Custodian's customary practices and any securities depository (as defined in Rule 17f-4 under the 1940 Act) in which Old Fund's assets are deposited, in the case of Old Fund's portfolio securities and instruments deposited with those depositories, and (3) by wire transfer of federal funds in the case of cash. Old Trust shall also direct the Old Custodian to deliver at the Closing a certificate of an authorized officer (**"Certificate"**) (a) stating that pursuant to proper instructions provided to the Old Custodian by Old Trust, the Old Custodian has delivered all of Old Fund's portfolio securities, cash, and other Assets to the New Custodian for New Fund's account and (b) attaching a schedule setting forth information (including adjusted basis and holding period, by lot) concerning the Assets. The New Custodian shall certify to New Trust that such information, as reflected on New Fund's books immediately after the Effective Time, does or will conform to that information as so certified by the Old Custodian. The New Fund hereby agrees to keep any portfolio securities information provided prior to the Effective Time confidential and to share such information only with its service providers that (i) require such information in connection with the consummation of the transaction contemplated herein and (ii) are subject to a duty, contractual or otherwise, to keep such information confidential.

2.4 Old Trust shall deliver, or shall direct its transfer agent to deliver, to New Trust at the Closing a Certificate, certified by Old Trust's Secretary or Assistant Secretary or by its transfer agent, as applicable, listing (a) the Shareholders' names and addresses, (b) the number of full and fractional outstanding Old Fund Shares each such Shareholder owns, (c) the dividend reinvestment elections, if any, applicable to each Shareholder, and (d) the backup withholding and nonresident alien withholding certifications, notices, or records on file with Old Trust with respect to each Shareholder, all at the Effective Time. New Trust shall direct its transfer agent to deliver to Old Trust at or as soon as reasonably practicable after the Closing a Certificate as to the opening of accounts on New Fund's shareholder records in the names of the listed Shareholders and a confirmation, or other evidence satisfactory to Old Trust, that the New Fund Shares to be credited to Old Fund at the Effective Time have been credited to Old Fund's account on those records at that time and thereafter transferred to the Shareholders' accounts in accordance with paragraph 1.4.

2.5 Old Trust shall deliver to New Trust and New Trust Adviser, within five days before the Closing, it being understood that such holdings may change prior to the Effective Time, a Certificate listing each security, by name of issuer and number of shares, that is being carried on Old Fund's books at values provided by an authorized pricing vendor for Old Fund.

2.6 If requested by New Trust, Old Trust shall direct U.S. Bancorp Fund Services, LLC, Old Trust's administrator (**"U.S.** **Bancorp"**), and other applicable service providers to deliver at the Closing copies of all work papers and supporting statements related to financial statements and tax returns, including those related to ASC 740-10-25 (formerly, "Accounting for Uncertainty in Income Taxes," FASB Interpretation No. 48, July 13, 2006), pertaining to Old Fund (collectively, "Work Papers") for all fiscal and taxable periods ended on or before March 31, 2025, and, if relevant, for the period from April 1, 2025 through the Effective Time.

2.7 At the Closing, each Investment Company shall deliver, on behalf of its Fund, to the other, on behalf of its Fund, (a) bills of sale, checks, assignments, share certificates, receipts, and/or other documents the other Investment Company or its counsel reasonably requests and (b) a Certificate executed in its name by its President or another authorized officer in form and substance satisfactory to the recipient, and dated the Effective Time, to the effect that the representations and warranties it made herein are true and correct at the Effective Time except as they may be affected by the transactions contemplated hereby.

2.8 Each of the New Trust Adviser and the Old Trust Adviser will agree in writing to issue, and the substance of, any press releases or other public statements with respect to the Closing, this Agreement or the Reorganization.

**<u>3. REPRESENTATIONS AND WARRANTIES</u>**

3.1 Old Trust, on Old Fund's behalf, represents and warrants to New Trust, on New Fund's behalf, as follows:

(a) Old Trust (1) is a statutory trust that is duly organized, validly existing, and in good standing under Delaware law, and its Certificate of Trust has been duly filed in the office of the Secretary of State of Delaware (**"State Secretary"**), (2) is duly registered under the 1940 Act as an open-end management investment company; and (3) has the power to own all its properties and assets and to carry on its business as described in its current registration statement on Form N-1A;

(b) Old Fund is a duly established and designated series of Old Trust;

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(c) Old Trust's execution, delivery, and performance of this Agreement have been duly authorized at the date hereof by all necessary action on the part of its Board; and this Agreement constitutes a valid and legally binding obligation of Old Trust, with respect to Old Fund, enforceable in accordance with its terms, subject to the effect of bankruptcy, insolvency, fraudulent transfer, reorganization, receivership, moratorium, and other laws affecting the rights and remedies of creditors generally and general principles of equity;

(d) At the Effective Time, Old Trust, on Old Fund's behalf, will have good and marketable title to the Assets and full right, power, and authority to sell, assign, transfer, and deliver the Assets hereunder free of any liens or other encumbrances (except securities that are subject to "securities loans," as referred to in section 851(b)(2), or that are restricted as to resale by their terms); and on delivery and payment for the Assets, New Trust, on New Fund's behalf, will acquire good and marketable title thereto, subject to no restrictions on the full transfer thereof, including restrictions that might arise under the Securities Act of 1933, as amended (**"1933 Act"**);

(e) Old Trust, with respect to Old Fund, is not currently engaged in, and its execution, delivery, and performance hereof and consummation of the Reorganization will not result in, (1) a conflict with or a material violation of any provision of its Third Amended and Restated Declaration of Trust dated August 20, 2025 (**"Old Trust's Declaration"**) or Amended and Restated Bylaws dated August 20, 2025, Delaware law, or any agreement, indenture, instrument, contract, lease, or other undertaking (each, an **"Undertaking"**) to which Old Trust, on Old Fund's behalf, is a party or by which it is bound or (2) the acceleration of any obligation, or the imposition of any penalty, under any Undertaking, judgment, or decree to which Old Trust, on Old Fund's behalf, is a party or by which it is bound;

(f) At or before the Effective Time, either (1) all material contracts and other commitments of or applicable to Old Trust, with respect to Old Fund (other than this Agreement and certain investment contracts, including options, futures, forward contracts and swap agreements), will terminate or (2) provision for discharge and/or New Fund's assumption of any liabilities of Old Fund thereunder will be made, without either Fund's incurring any penalty with respect thereto and without diminishing or releasing any rights Old Trust may have had with respect to actions taken or omitted or to be taken by any other party thereto before the Closing;

(g) No material litigation, administrative proceeding, action, or investigation of or before any court, governmental body, or arbitrator is presently known to be pending or, to Old Trust's best knowledge, threatened against Old Trust, with respect to Old Fund or any of its properties or assets attributable or allocable to Old Fund that, if adversely determined, would materially and adversely affect Old Fund's financial condition or the conduct of its business; and Old Trust, on Old Fund's behalf, knows of no facts that might form the basis for the institution of any such material litigation, proceeding, action, or investigation and is not known to be a party to or subject to the provisions of any order, decree, judgment, or award of any court, governmental body, or arbitrator that materially and adversely affects Old Fund's business or Old Trust's ability to consummate the transactions contemplated hereby;

(h) Old Fund has no known liabilities of a material nature, contingent or otherwise, other than those that are shown as belonging to it on its statement of assets and liabilities as of March 31, 2025, and those incurred in the ordinary course of business as an investment company since such date. Old Fund's Statement of Assets and Liabilities, Schedule of Investments, Statement of Operations, and Statement of Changes in Net Assets (each, a **"Statement"**) at and for the fiscal year (in the case of the last Statement, for the two fiscal years) ended March 31, 2025, have been audited by PricewaterhouseCoopers LLP, the independent registered public accounting firm for the Old Fund for the same period, and are in accordance with generally accepted accounting principles consistently applied in the United States;

(i) Since March 31, 2025, there has not been any material adverse change in Old Fund's financial condition, assets, liabilities, or business, other than changes occurring in the ordinary course of business, or any incurrence by Old Fund of indebtedness maturing more than one year from the date that indebtedness (other than indebtedness incurred in connection with certain investment contracts including options, futures, forward and swap contracts) was incurred; for purposes of this subparagraph, a decline in NAV per Old Fund Share due to declines in market values of securities Old Fund holds, the discharge of Old Fund liabilities, distributions of net investment income and net realized capital gains, changes in portfolio securities, or the redemption of Old Fund Shares by its shareholders will not constitute a material adverse change;

(j) All federal and other tax returns, dividend reporting forms, and other tax-related reports (collectively, **"Returns"**) of Old Fund required by law to have been filed by the Effective Time (taking into account any properly and timely filed extensions of time to file) have been or will, prior to the Effective Time, be filed and are or will be correct in all material respects, and all federal and other taxes shown as due or required to be shown as due on those Returns will have been paid or provision will have been made for the payment thereof; to the best of Old Trust's knowledge, no such Return is currently under audit and no assessment has been asserted with respect to those Returns;

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(k) Old Fund (1) is in compliance in all material respects with all applicable Regulations pertaining to (a) the reporting of dividends and other distributions with respect to, and redemptions of, its shares, (b) withholding in respect thereof, and (c) shareholder basis reporting, (2) has withheld in respect of those dividends and other distributions and paid to the proper taxing authorities all taxes required to be withheld, and (3) is not liable for any material penalties that could be imposed thereunder;

(l) For each taxable year of its operation (including its current taxable year through the Effective Time), Old Fund has met (and for its current taxable year through the Effective Time will meet) the requirements of Part I of Subchapter M of Chapter 1 of Subtitle A of the Code (**"Subchapter M"**) for qualification as a "regulated investment company" (as defined in section 851(a)(1)) ("RIC") and has been (and for its current taxable year through the Effective Time will be) eligible to and has computed its federal income tax under section 852; Old Fund has not at any time since its inception been liable for, and is not now liable for, any material income tax pursuant to section 852 of the Code; and Old Fund has no earnings and profits accumulated in any taxable year in which the provisions of Subchapter M did not apply to it;

(m) All issued and outstanding Old Fund Shares are, and at the Effective Time will be, duly and validly issued and outstanding, fully paid, and non-assessable by Old Trust and have been offered and sold in every state, all U.S. Territories and the District of Columbia in compliance in all material respects with applicable registration requirements of the 1933 Act and state securities laws; all issued and outstanding Old Fund Shares will, at the Effective Time, be held by the persons and in the amounts set forth on Old Fund's shareholder records (as provided in the Certificate to be delivered pursuant to paragraph 2.4); and Old Fund does not have outstanding any options, warrants, or other rights to subscribe for or purchase any Old Fund Shares, nor are there outstanding any securities convertible into any Old Fund Shares;

(n) Old Fund incurred the Liabilities, which are associated with the Assets, in the ordinary course of its business;

(o) Old Fund is not under the jurisdiction of a court in a "title 11 or similar case" (as defined in section 368(a)(3)(A));

(p) On the date on which they were issued, on the effective date of the Registration Statement (as defined in paragraph 3.3(a)), at the time of the Shareholders Meeting (as defined in paragraph 4.2), and at the Effective Time, Old Fund's current prospectus and statement of additional information, as amended or supplemented from time to time, did and will (1) conform in all material respects to the applicable requirements of the 1933 Act and the 1940 Act and the rules and regulations of the Commission thereunder and (2) not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading ("Untrue Statement or Omission");

(q) The information to be furnished by Old Trust for use in, as applicable, no-action letters, applications for orders, the Registration Statement, proxy materials, and other documents filed or to be filed with any federal, state, or local regulatory authority (including the Financial Industry Regulatory Authority, Inc. (**"FINRA"**)) that may be necessary in connection with the transactions contemplated hereby will be accurate and complete in all material respects and will comply in all material respects with federal securities laws and other laws and regulations; and written information provided by Old Trust for inclusion in the Registration Statement (other than written information provided by New Trust for inclusion therein) will, on the effective date of the Registration Statement, at the Effective Time, and at the time of the Shareholders Meeting, not contain any Untrue Statement or Omission;

(r) Each series of the Old Trust (including Old Fund) is a managed portfolio of securities, and Old Trust Adviser has the authority to buy and sell securities for Old Fund;

(s) Old Fund's investment operations from inception to the date hereof have been in compliance in all material respects with the investment policies and investment restrictions set forth in its prospectus and statement of additional information, as amended or supplemented from time to time, except as previously disclosed in writing to New Trust;

(t) The New Fund Shares to be delivered to Old Fund hereunder are not being acquired for the purpose of making any distribution thereof, other than in accordance with the terms hereof;

(u) Old Fund's minute books and similar records made available to New Trust prior to the execution hereof contain a true and complete record in all material respects of all material action taken at all meetings and by all written consents in lieu of meetings of the shareholders and of its Board and any committees of its Board; Old Fund's shareholder records so made available accurately reflect all record transfers in Old Fund's shares prior to the execution of this Agreement; and any other books and records of Old Fund so made available are true and correct in all material respects and contain no material omissions with respect to Old Fund's business and operations;

(v) Old Trust has maintained with respect to Old Fund, in all material respects, all books and records required of a registered investment company in compliance with the requirements of section 31 of the 1940 Act and rules thereunder, and those books and records are true and correct in all material respects;

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(w) Old Trust has adopted and implemented written policies and procedures in accordance with Rule 38a-1 under the 1940 Act;

(x) Old Fund does not have any unamortized or unpaid organizational fees or expenses;

(y) Old Fund has not changed its fiscal year-end since inception and will not change its fiscal year-end prior to the Closing;

(z) No expenses incurred by Old Fund or on its behalf in connection with the Reorganization will be paid or assumed by Old Trust Adviser, or any "affiliated person" (as defined in section 2(a)(3) of the 1940 Act) (**"Affiliate"**) of or person related to Old Fund or Old Trust Adviser (each along with Old Fund, an **"Old Fund Group Member"**) (other than Old Fund) or, to Old Trust's knowledge, any other person unless those expenses are solely and directly related to the Reorganization (determined in accordance with the guidelines set forth in Rev. Rul. 73-54, 1973-1 C.B. 187) (**"Reorganization Expenses"**), and no cash or property other than New Fund Shares will be transferred to Old Fund or any of its shareholders by any Old Fund Group Member or, to Old Trust's knowledge, any other person with the intention that it be used to pay any expenses (even Reorganization Expenses) thereof;

(aa) Immediately following consummation of the Reorganization, the Select Income Fund will hold the same assets and be subject to the same liabilities that Old Fund held or was subject to immediately before the Reorganization; and

(bb) Old Trust is undertaking the Reorganization for bona fide business purposes (and not a purpose to avoid federal income tax).

3.2 New Trust, on New Fund's behalf, represents and warrants to Old Trust, on Old Fund's behalf, as follows:

(a) New Trust (1) is a trust operating under a written instrument or declaration of trust, the beneficial interest in which is divided into transferable shares, that is duly created, validly existing, and in good standing under the laws of the Commonwealth of Massachusetts (**"Massachusetts"**), and its Amended and Restated Declaration of Trust, dated August 20, 2019 (**"New Trust's Declaration"**) is on file with the Secretary of Massachusetts, (2) is duly registered under the 1940 Act as an open-end management investment company, and (3) has the power to own all its properties and assets and to carry on its business as described in its current registration statement on Form N-1A;

(b) At the Effective Time, New Fund will be a duly established and designated series of New Trust; New Fund has not commenced operations and will not do so until after the Closing; and, immediately before the Closing, New Fund will be a shell series of New Trust, without assets (except the amount paid for the Initial Shares if they have not already been redeemed by that time) or liabilities, created for the purpose of acquiring the Assets, assuming the Liabilities, and continuing Old Fund's business;

(c) New Trust's execution, delivery, and performance of this Agreement have been duly authorized at the date hereof by all necessary action on the part of its Board; and this Agreement constitutes a valid and legally binding obligation of New Trust, with respect to New Fund, enforceable in accordance with its terms, subject to the effect of bankruptcy, insolvency, fraudulent transfer, reorganization, receivership, moratorium, and other laws affecting the rights and remedies of creditors generally and general principles of equity;

(d) Before the Closing with respect to New Fund, there will be no (1) issued and outstanding New Fund Shares of any class, (2) options, warrants, or other rights to subscribe for or purchase any New Fund Shares, (3) securities convertible into any New Fund Shares, or (4) other securities issued by New Fund, except the Initial Shares;

(e) No consideration other than New Fund Shares (and New Fund's assumption of the Liabilities) will be issued in exchange for the Assets in the Reorganization;

(f) New Trust, with respect to New Fund, is not currently engaged in, and its execution, delivery, and performance of this Agreement and consummation of the Reorganization will not result in, (1) a conflict with or material violation of any provision of Massachusetts law, the New Trust's declaration of trust or New Trust's Bylaws, or any Undertaking to which New Trust, on New Fund's behalf, is a party or by which it is bound or (2) the acceleration of any obligation, or the imposition of any penalty, under any Undertaking, judgment, or decree to which New Trust, on New Fund's behalf, is a party or by which it is bound;

(g) No litigation, administrative proceeding, action, or investigation of or before any court, governmental body, or arbitrator is presently pending or, to New Trust's knowledge, threatened against New Trust, with respect to New Fund or any of its properties or assets attributable or allocable to New Fund, that, if adversely determined, would materially and adversely affect New Fund's financial condition or the conduct of its business; and New Trust, on New Fund's behalf, knows of no facts that might form the basis for the institution of any such litigation, proceeding, action, or investigation and is not a party to or subject to the provisions of any order, decree, judgment, or award of any court, governmental body, or arbitrator that materially and adversely affects New Fund's business or New Trust's ability to consummate the transactions contemplated hereby;

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(h) New Fund is not (and will not be) classified as a partnership, and instead is (and will be) classified as an association that is taxable as a corporation, for federal tax purposes and either has elected (or will timely elect) the latter classification by filing Form 8832 with the Service or is (and will be) a "publicly traded partnership" (as defined in section 7704(b)) that is treated as a corporation; New Fund has not filed any income tax return and will file its first federal income tax return after the completion of its first taxable year after the Effective Time as a RIC on Form 1120-RIC; until that time, New Fund will take all steps necessary to ensure that it is eligible and qualifies for taxation as a RIC under Subchapter M; from and after its commencement of operations, New Fund will be a "fund" (as defined in section 851(g)(2), eligible for treatment under section 851(g)(1)) and has not taken and will not take any steps inconsistent with its qualification as such; assuming that Old Fund will meet the requirements of Subchapter M for qualification as a RIC for the part of its taxable year through the Effective Time, New Fund will meet those requirements, and will be eligible to and will compute its federal income tax under section 852, for its taxable year in which the Reorganization occurs; and New Fund intends to continue to meet all those requirements, and to be eligible to and to so compute its federal income tax, for each subsequent taxable year;

(i) The New Fund Shares to be issued and delivered to Old Fund, for the Shareholders' accounts, pursuant to the terms hereof, (1) will at the Effective Time have been duly authorized and duly registered under the federal securities laws, and appropriate notices respecting them will have been duly filed under applicable state securities laws, and (2) when so issued and delivered, will be duly and validly issued and outstanding New Fund Shares and will be fully paid and non-assessable by New Trust;

(j) There is no plan or intention for New Fund to be terminated, dissolved, or merged into another business or statutory trust or a corporation or any "fund" thereof (as defined in section 851(g)(2)) following the Reorganization;

(k) Immediately after the Effective Time, New Fund will not be under the jurisdiction of a court in a "title 11 or similar case" (as defined in section 368(a)(3)(A));

(l) On the date on which they were issued, on the effective date of the Registration Statement, at the time of the Shareholders Meeting, and at the Effective Time, as applicable, New Trust's prospectus and statement of additional information including New Fund and the prospectus included in the Registration Statement did and will (a) conform in all material respects to the applicable requirements of the 1933 Act and the 1940 Act and the rules and regulations of the Commission thereunder and (b) not contain any Untrue Statement or Omission; provided that the foregoing will not apply to Untrue Statements or Omissions from that prospectus made in reliance on and in conformity with written information furnished by the Old Trust for use therein;

(m) Any no-action letters, applications for orders, registration statements, proxy materials, and other documents filed or to be filed by the New Trust with any federal, state, or local regulatory authority (including FINRA) that may be necessary in connection with the transactions contemplated hereby will be accurate and complete in all material respects and will comply in all material respects with federal securities laws and other laws and regulations; and the Registration Statement (other than written information provided by Old Trust for inclusion therein) will, on its effective date, at the Effective Time, and at the time of the Shareholders Meeting, not contain any Untrue Statement or Omission;

(n) The New Trust's Declaration permits New Trust to vary its shareholders' investment; New Trust does not have a fixed pool of assets; and each series thereof (including New Fund after it commences operations) is (or will be) a managed portfolio of securities, and New Trust Adviser and each investment sub-advisor thereof have the authority to buy and sell securities for it;

(o) None of the compensation received from New Fund, New Trust Adviser, or any Affiliate of either of them (each, a **"New Fund Group Member"**) by any Shareholder who or that is an employee of or service provider to Old Fund will be separate consideration for, or allocable to, any of the Old Fund Shares that Shareholder holds; none of the New Fund Shares any such Shareholder receives will be separate consideration for, or allocable to, any employment agreement, investment advisory agreement, or other service agreement with any New Fund Group Member; and the compensation paid to any such Shareholder by any New Fund Group Member will be for services actually rendered and will be commensurate with amounts paid to third parties bargaining at arm's-length for similar services;

(p) No expenses incurred by Old Fund or on its behalf in connection with the Reorganization will be paid or assumed by any New Fund Group Member or, to New Trust's knowledge, any other person unless those expenses are Reorganization Expenses, and no cash or property other than New Fund Shares will be transferred to Old Fund or any of its shareholders by any New Fund Group Member or, to New Trust's knowledge, any other person with the intention that it be used to pay any expenses (even Reorganization Expenses) thereof;

(q) Immediately following consummation of the Reorganization, the Shareholders will own New Fund Shares and will own those shares solely by reason of their ownership of the Old Fund Shares immediately before the Reorganization; and

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(r) New Trust is undertaking the Reorganization for bona fide business purposes (and not a purpose to avoid federal income tax).

3.3 Each Investment Company, on its Fund's behalf, represents and warrants to the other Investment Company, on its Fund's behalf, as follows:

(a) No governmental consents, approvals, authorizations, or filings are required under the 1933 Act, the Securities Exchange Act of 1934, as amended, the 1940 Act, or state securities laws, and no consents, approvals, authorizations, or orders of any court are required, for its execution or performance of this Agreement on its Fund's behalf, except for (1) New Trust's filing with the Commission of a registration statement on Form N-14 relating to the New Fund Shares issuable hereunder, and any supplement or amendment thereto, including therein a prospectus and proxy statement (**"Registration Statement"**), and (2) consents, approvals, authorizations, and filings that have been made or received or may be required after the Effective Time;

(b) The value of the New Fund Shares each Shareholder receives with respect to the New Fund will be equal to the NAV of its Old Fund Shares it actually or constructively surrenders in exchange therefor;

(c) The Shareholders will pay their own expenses (such as fees of personal investment or tax advisers for advice regarding the Reorganization), if any, incurred in connection with the Reorganization;

(d) The fair market value and "adjusted basis" (within the meaning of section 1011) of the Assets will equal or exceed the Liabilities to be assumed by New Fund and those to which the Assets are subject; and

(e) The principal purpose of New Fund's assumption of the Liabilities is not avoidance of federal income tax on the transaction.

**<u>4. COVENANTS</u>**

4.1 Old Trust covenants to operate Old Fund's business in the ordinary course between the date hereof and the Effective Time, it being understood that such ordinary course of business will include purchases and sales of portfolio securities and other instruments, sales and redemptions of Old Fund Shares, and regular and customary periodic dividends and other distributions.

4.2 Old Trust covenants to call and hold a special meeting of Old Fund's Shareholders to consider and act on this Agreement and to take all other action reasonably necessary to obtain approval of the transactions contemplated hereby (**"Shareholders Meeting"**).

4.3 Old Trust covenants that it will assist New Trust in obtaining information New Trust reasonably requests concerning the beneficial ownership of Old Fund Shares.

4.4 Old Trust covenants that it will turn over its books and records pertaining to Old Fund (including all tax books and records and all books and records required to be maintained under the 1940 Act and the rules and regulations thereunder) to New Trust at the Closing (though it may keep copies of any records).

4.5 Each Investment Company covenants to cooperate with the other in preparing the Registration Statement in compliance with applicable federal and state securities laws.

4.6 Each Investment Company covenants that it will, from time to time, as and when reasonably requested by the other, execute and deliver or cause to be executed and delivered all assignments and other instruments, and will take or cause to be taken any further action(s), the other Investment Company deems reasonably necessary or desirable in order to vest in, and confirm to, (a) New Trust, on New Fund's behalf, title to and possession of all the Assets and assumption of all the Liabilities, and (b) Old Trust, on Old Fund's behalf, title to and possession of the New Fund Shares to be delivered hereunder, and otherwise to carry out the intent and purpose hereof.

4.7 New Trust covenants to use all reasonable efforts to obtain the approvals and authorizations required by the 1933 Act, the 1940 Act, and applicable state securities laws it deems appropriate to continue or commence and continue New Fund's, as applicable, operations after the Effective Time.

4.8 Old Trust covenants that, as promptly as practicable, but in any case within 60 days, after the Effective Time, it will furnish to New Trust, in a form reasonably satisfactory thereto, a Certificate stating Old Fund's earnings and profits for federal income tax purposes and any capital loss carryovers and other items that will be carried over to New Fund pursuant to section 381.

4.9 It is each Investment Company's intention that the Reorganization will qualify as a "reorganization" (as defined in section 368(a)(1)(F)), and in furtherance thereof, each Investment Company covenants that it will not take any action or cause any action to be taken (including the filing of any tax return) that is inconsistent with that treatment or results in the failure of the Reorganization to so qualify.

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4.10 Old Trust covenants that, if requested, it will cause U.S. Bancorp and other applicable service providers to deliver to New Trust copies of all Work Papers for all fiscal and taxable periods ended on or before March 31, 2025 and, if relevant, for the period from April 1, 2025 through the Effective Time, in each case, no later than the earlier of (a) within 60 days following receipt of the written request or (b) 15 days after the Effective Date.

4.11 New Trust covenants that it will engage a transfer agent that will open accounts on New Fund's shareholder records in the Shareholders' names and transferring those New Fund Shares thereto.

4.12 Subject to this Agreement, each Investment Company covenants to take or cause to be taken all actions, and to do or cause to be done all things, reasonably necessary, proper, or advisable to consummate and effectuate the transactions contemplated hereby.

**<u>5. CONDITIONS PRECEDENT</u>**

Each Investment Company's obligations hereunder shall be subject to (a) performance by the other Investment Company of all its obligations to be performed hereunder at or before the Closing, (b) all representations and warranties of the other Investment Company contained herein being true and correct in all material respects at the date hereof and, except as they may be affected by the transactions contemplated hereby, at the Effective Time, with the same force and effect as if made at that time, and (c) the following further conditions that, at or before that time:

5.1 This Agreement and the transactions contemplated hereby shall have been duly adopted and approved by both Boards and by Old Fund's Shareholders at the Shareholders Meeting;

5.2 All necessary filings shall have been made with the Commission and state securities authorities, and no order or directive shall have been received that any other or further action is required to permit the Investment Companies to carry out the transactions contemplated hereby. The Registration Statement shall have become effective under the 1933 Act; no stop order(s) suspending the effectiveness thereof shall have been issued; to each Investment Company's best knowledge, no investigation or proceeding for that purpose shall have been instituted or be pending, threatened, or contemplated under the 1933 Act or the 1940 Act; and the Commission shall not have issued an unfavorable report with respect to the Reorganization under section 25(b) of the 1940 Act nor instituted any proceedings seeking to enjoin consummation of the transactions contemplated hereby under section 25(c) of the 1940 Act. All consents, orders, and permits of federal, state, and local regulatory authorities (including the Commission and state securities authorities) either Investment Company deems necessary to permit consummation, in all material respects, of the transactions contemplated hereby shall have been obtained, except where failure to obtain the same would not involve a risk of a material adverse effect on either Fund's assets or properties;

5.3 At the Effective Time, no action, suit, or other proceeding shall be pending (or, to either Investment Company's best knowledge, threatened to be commenced) before any court, governmental agency, or arbitrator in which it is sought to enjoin the performance of, restrain, prohibit, affect the enforceability of, or obtain damages or other relief in connection with, the transactions contemplated hereby;

5.4 The Investment Companies shall have received an opinion of K&L Gates LLP ("Counsel") as to the federal income tax consequences mentioned below ("Tax Opinion"). In rendering the Tax Opinion, Counsel may rely as to factual matters, exclusively and without independent verification, on the representations and warranties made in this Agreement, which Counsel may treat as representations and warranties made to it (which, notwithstanding paragraph 7, shall survive the Closing), and in separate letters, if Counsel requests, addressed to it (collectively, "Representations") and the Certificates delivered pursuant to paragraph 2.7(b). The Tax Opinion shall be substantially to the effect that – based on the facts and assumptions stated therein and conditioned on the Representations' being true and complete at the Effective Time and consummation of the Reorganization in accordance with this Agreement (without the waiver or modification of any terms or conditions hereof and without taking into account any amendment hereof that Counsel has not approved) – for federal income tax purposes:

(a) New Fund's acquisition of the Assets in exchange solely for New Fund Shares and its assumption of the Liabilities, followed by Old Fund's distribution of those shares pro rata to the Shareholders actually or constructively in exchange for their Old Fund Shares and in complete liquidation of Old Fund, will qualify as a "reorganization" (as defined in section 368(a)(1)(F)), and each Fund will be "a party to a reorganization" (within the meaning of section 368(b));

(b) Old Fund will recognize no gain or loss on the transfer of the Assets to New Fund in exchange solely for New Fund Shares and New Fund's assumption of the Liabilities, or on the subsequent distribution of those shares to the Shareholders in exchange for their Old Fund Shares;

(c) New Fund will recognize no gain or loss on its receipt of the Assets in exchange solely for New Fund Shares and its assumption of the Liabilities;

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(d) New Fund's basis in each Asset will be the same as Old Fund's basis therein immediately before the Reorganization, and New Fund's holding period for each Asset will include Old Fund's holding period therefor (except where New Fund's investment activities have the effect of reducing or eliminating an Asset's holding period);

(e) A Shareholder will recognize no gain or loss on the exchange of all of its Old Fund Shares solely for New Fund Shares (including fractional shares to which it may be entitled) pursuant to the Reorganization;

(f) A Shareholder's aggregate basis in the New Fund Shares (including fractional shares to which it may be entitled) it receives in the Reorganization will be the same as the aggregate basis in its Old Fund Shares it actually or constructively surrenders in exchange for those New Fund Shares, and its holding period for those New Fund Shares (including fractional shares to which it may be entitled) will include, in each instance, its holding period for those Old Fund Shares, provided the Shareholder holds them as capital assets at the Effective Time; and

(g) For purposes of section 381, New Fund will be treated just as Old Fund would have been treated if there had been no Reorganization. Accordingly, the Reorganization will not result in the termination of Old Fund's taxable year, Old Fund's tax attributes enumerated in section 381(c) will be taken into account by New Fund as if there had been no Reorganization, and the part of Old Fund's last taxable year that began before the Reorganization will be included in New Fund's first taxable year that ends after the Reorganization.

Notwithstanding subparagraphs (b) and (d), the Tax Opinion may state that no opinion is expressed as to the effect of the Reorganization on the Funds or any Shareholder with respect to any Asset as to which any unrealized gain or loss is required to be recognized for federal income tax purposes on the termination or transfer thereof under a mark-to-market system of accounting.

5.5 Before the Closing, New Trust's Board shall have authorized the issuance of, and New Trust shall have issued, one Share of each class of the New Fund (collectively, **"Initial Shares"**) to New Trust Adviser or an affiliate thereof, in consideration of the payment of $10.00 (or other amount that New Trust's officers, pursuant to that Board's delegation of authority, determine) apiece, to take whatever action it may be required to take as Select Income Fund's sole shareholder pursuant to paragraph 5.6; and

5.6 New Trust, on New Fund's behalf, shall have entered into, or adopted, as appropriate, an investment management agreement and other agreements, including a sub-advisory agreement with Old Trust Adviser, and plans necessary for New Fund's operation as a series of an open-end management investment company, as described in the Registration Statement. Each such agreement and plan shall have been approved by New Trust's Board and, to the extent required by law (as interpreted by Commission staff positions), by its trustees who are Non-Interested Persons thereof and, to the extent applicable, by New Trust Adviser or its affiliate as New Fund's sole shareholder. At any time before the Closing, either Investment Company may waive any of the foregoing conditions (except those set forth in paragraphs 5.1, 5.2, 5.4, 5.5 and 5.6) if, in the judgment of its Board, that waiver will not have a material adverse effect on its Fund's shareholders' interests.

**<u>6. EXPENSES</u>**

Subject to complying with the representations and warranties contained in paragraphs 3.1(z) and 3.2(p), neither the Old Fund nor New Fund shall bear the Reorganization Expenses as set forth herein.

New Trust Adviser will bear 100% of the expenses relating to the Reorganization, including without limitation: (1) costs, including legal and accounting fees, associated with preparing, reviewing, and filing the Agreement and Old Fund's proxy materials, (2) expenses incurred in connection with printing and mailing Old Fund's proxy materials and the solicitation of proxies for the special meeting of Old Fund shareholders, (3) transfer agent and custodian conversion costs, (4) costs of preparing and filing the Old Fund's prospectus supplement, (5) costs of preparing and filing the New Fund's registration statement, and (6) costs associated with any meeting of the Old Trust Board or New Trust Board.

Each of the Old Fund and New Fund will bear, as applicable, the costs of (i) buying and selling portfolio securities necessary to effect the Reorganization in instances where the securities may not be transferred in-kind; and (ii) transfer or stamp duties, such as those typically imposed in certain non-U.S. markets in connection with the transfer of portfolio securities to the New Fund.

Old Trust Adviser and New Trust Adviser shall each bear its own Reorganization Expenses not listed above, including for example, legal fees incurred by Old Trust Adviser or New Trust Adviser for their own business interests. Notwithstanding the foregoing, expenses shall be paid by the Fund directly incurring them if and to the extent that the payment thereof by another person would result in that Fund's disqualification as a RIC or would prevent the Reorganization from qualifying as a tax-free reorganization.

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New Trust Adviser does not anticipate any indirect costs of the Reorganization, but it is anticipated that such indirect costs, if any, will be paid by the New Fund. An example of an indirect cost of a reorganization is additional auditor's fee resulting from testing of and review of disclosures in the annual report pertaining to the Reorganization. Notwithstanding the foregoing, expenses shall be paid by the Fund directly incurring them if and to the extent that the payment thereof by another person would result in the Fund's disqualification as a RIC or would prevent the Reorganization from qualifying as a tax-free reorganization.

**<u>7. ENTIRE AGREEMENT; NO SURVIVAL</u>**

This Agreement supersedes all previous correspondence and oral communications between the parties regarding the subject matter hereof and constitutes the only understanding with respect to such subject matter. Neither Investment Company has made any representation, warranty, agreement, or covenant not set forth herein, and this Agreement constitutes the entire agreement between the Investment Companies. Except for the provisions of paragraph 2.8, paragraphs 3.1(p) and (q), paragraphs 3.2(l) and (m), paragraph 6, paragraph 12, and as provided in paragraph 5.4, the representations, warranties, agreements, and covenants contained herein or in any document delivered pursuant hereto or in connection herewith shall not survive the Closing.

**<u>8. TERMINATION</u>**

This Agreement may be terminated at any time at or before the Closing:

8.1 By either Investment Company (a) in the event of the other Investment Company's material breach of any representation, warranty, agreement, or covenant contained herein to be performed at or before the Closing, (b) if a condition to its obligations has not been met and it reasonably appears that that condition will not or cannot be met, (c) if a governmental body issues an order, decree, or ruling having the effect of permanently enjoining, restraining, or otherwise prohibiting consummation of the Reorganization, or (d) if the Closing has not occurred on or before [June 30, 2026], or another date to which the Investment Companies agree; or

8.2 By the Investment Companies' mutual agreement. In the event of termination under paragraphs 8.1(c) or (d) or 8.2, neither Investment Company (nor its trustees, officers, or shareholders) shall have any liability to the other Investment Company.

**<u>9. AMENDMENTS</u>**

The Investment Companies may amend, modify, or supplement this Agreement at any time in any manner they mutually agree on in writing, notwithstanding Old Fund's shareholders' approval thereof; provided that, following that approval, no such amendment, modification, or supplement shall have a material adverse effect on the Shareholders' interests.

**<u>10. SEVERABILITY</u>**

Any term or provision hereof that is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of that invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions hereof or affecting the validity or enforceability of any of the terms and provisions hereof in any other jurisdiction.

**<u>11. NOTICES AND OTHER COMMUNICATIONS</u>**

Any notice or other communication under this Agreement must be in writing and shall be deemed given when it is delivered in person or sent by facsimile or electronic mail (with proof of receipt at the required facsimile number or email address), on the business day after the day on which it is delivered to a major nationwide overnight delivery service with instructions to make next business day delivery, or on the third business day after the day on which it is mailed by first class mail from within the United States of America, addressed as follows:

If to New Trust or New Trust Adviser:

American Beacon Funds<br>American Beacon Advisors, Inc<br>220 E. Las Colinas Blvd., Suite 1200<br>Irving, Texas 75039 <br>Email: legal@ambeacon.com Attn: President with a copy to Chief Legal Officer

If to Old Trust or Old Trust Adviser:

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DoubleLine Funds Trust<br>DoubleLine Capital LP<br>2002 N. Tampa Street, Suite 200<br>Tampa, FL 33602<br>Email: Legal@doubleline.com Attn: General Counsel

**12. SECTION 15(f) OF THE 1940 ACT**

The New Trust Adviser intends that the Transaction shall satisfy the applicable requirements of Section 15(f) of the 1940 Act. In this connection, the New Trust Adviser agrees that, for the minimum time periods specified in Section 15(f) of the 1940 Act in respect of transactions that are a subject of Section 15(f) of the 1940 Act, the New Trust Adviser shall use commercially reasonable efforts, subject to its fiduciary duties, not to cause (and to prevent their respective Affiliates from causing) a violation of Section 15(f) in connection with the Transaction. Without limiting the foregoing and, to the extent applicable, the New Trust Adviser, subject to compliance with its fiduciary duties, shall use commercially reasonable efforts to, take (or refrain from taking, as the case may be) or cause its Affiliates or the trustees or directors (as applicable) of the New Fund to, take (or refrain from taking, as the case may be) such actions as are necessary to ensure that: (a) for a period of not less than three (3) years after the Closing, no more than 25% of the members of the Board of the NewTrust shall be "interested persons" (as defined in the 1940 Act) of the New Trust Advisor, the Old Trust Advisor or any of their respective affiliates, and (b) for a period of not less than two (2) years after the Closing, neither the Old Trust Advisor nor any of its affiliates shall impose an "unfair burden" (within the meaning of Section 15 of the 1940 Act, as interpreted from time to time by the Commission or its staff) on the New Fund as a result of the transactions contemplated by this Agreement or any express or implied terms, conditions or understandings applicable thereto.

**<u>13. MISCELLANEOUS</u>**

13.1 This Agreement shall be governed by and construed in accordance with the internal laws of Delaware, without giving effect to principles of conflicts of laws; provided that, in the case of any conflict between those laws and the federal securities laws, the latter shall govern.

13.2 Each Investment Company represents that there is no person who has dealt with it who, by reason of such dealings, is entitled to any broker's or finder's or other similar fee or commission arising out of the transactions contemplated by this Agreement.

13.3 All covenants, agreements, representations and warranties made under this Agreement and any certificates delivered pursuant to this Agreement shall be deemed to have been material and relied upon by each of the parties, notwithstanding any investigation made by them or on their behalf.

13.4 Nothing expressed or implied herein is intended or shall be construed to confer on or give any person, firm, trust, or corporation other than New Trust, on New Fund's behalf, or Old Trust, on Old Fund's behalf, and its respective successors and assigns any rights or remedies under or by reason of this Agreement. Neither this Agreement nor any right of any party under it may be assigned.

13.5 Notice is hereby given that this instrument is executed and delivered on behalf of each Investment Company's trustees or officers solely in their capacities as trustees or officers and not individually, and that each Investment Company's obligations hereunder are not binding on or enforceable against any of its trustees, officers, shareholders, or series other than the applicable Fund but are only binding on and enforceable against its property attributable to and held for the benefit of the applicable Fund ("Fund's Property") and not its property attributable to and held for the benefit of any other series thereof. Each Investment Company, in asserting any rights or claims hereunder on its or the applicable Fund's behalf, shall look only to the other applicable Fund's Property in settlement of those rights or claims and not to the property of any other series of the other Investment Company or to those trustees, officers, or shareholders.

13.6 This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been executed by each Investment Company and delivered to the other Investment Company. The headings contained herein are for reference purposes only and shall not affect in any way the meaning or interpretation hereof.

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| | |
|:---|:---|
| IN WITNESS WHEREOF, each party has caused this Agreement to be executed and delivered by its duly authorized officer as of the day and year first written above. | IN WITNESS WHEREOF, each party has caused this Agreement to be executed and delivered by its duly authorized officer as of the day and year first written above. |
|  | DoubleLine Funds Trust, solely on behalf of its series DoubleLine Select Income Fund (formally, DoubleLine Infrastructure Income Fund) |
| By: |  |
| Name: |  |
| Title: |  |
|  | American Beacon Funds, solely on behalf of its series American Beacon DoubleLine Select Income Fund |
| By: |  |
| Name: |  |
| Title: |  |

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| |
|:---|
| <u>For purposes of paragraph 2.8 and paragraph 6 only:</u><br><u>DoubleLine Capital LP</u> |
| By: |
| Name: |
| Title: |
| <u>For purposes of paragraph 2.8, paragraph 6 and paragraph</u> <u>12 only:</u><br>AMERICAN BEACON ADVISORS, INC. |
| By: |
| Name: |
| Title: |

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**APPENDIX B: OWNERSHIP OF SHARES**

As of the Record Date, the following persons were record owners (or to the knowledge of the Target Trust, beneficial owners) of 5% or more of any class of the shares of the Target Funds. The Target Trust believes that most of the shares referred to below were held by the below persons in accounts for their fiduciary, agency or custodial customers. Persons may be deemed to "control" a Target Fund within the meaning of the 1940 Act if they own beneficially or through controlled companies more than 25% of the voting securities of a Target Fund or acknowledge the existence of control. Shareholders controlling a Target Fund may have a significant impact on any shareholder vote of the Target Fund. The actions of an entity or person that controls a Target Fund could have an effect on other shareholders. For instance, a control person may have effective voting control over a Target Fund or large redemptions by a control person could cause the Target Fund's other shareholders to pay a higher pro rata portion of the Target Fund's expenses.

**DoubleLine Floating Rate Fund**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Address of Principal Holder** | **Share Class** | **Percent of** **Share Class** **Owned** | **Record of** **Beneficial** **Ownership** | **Share Class** **Percentage** **Owned After** **the** **Reorganization** | **Percent of** **Target Fund** **Owned** **(if>25%)** |
| [XX] | Class I | [XX]% | Record | [XX]% | [XX]% |
| [XX] | Class N | [XX]% | Record | [XX]% | [XX]% |

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**DoubleLine Select Income Fund (formerly, DoubleLine Infrastructure Income Fund)**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Address of Principal Holder** | **Share Class** | **Percent of** **Share Class** **Owned** | **Record or** **Beneficial** **Ownership** | **Share Class** **Percentage** **Owned After** **the** **Reorganization** | **Percent of** **Target Fund** **Owned (if** **>25%)** |
| [XX]% | Class I | [XX]% | Record | [XX]% | [XX]% |
| [XX]% | Class N | [XX]% | Record | [XX]% | [XX]% |

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**APPENDIX C: ADDITIONAL INFORMATION ABOUT THE ACQUIRING FUND**

References to "the Fund" or "a Fund" in this section refer to the Acquiring Floating Rate Income Fund or the Acquiring Select Income Fund, as applicable. This section provides more detailed information regarding certain of the Funds' principal investment strategies as well as information regarding the Funds' strategy with respect to investment of cash balances.

**Asset-Backed Securities**<br>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 loans, receivables or other assets, such as credit card, automobile or consumer loan receivables, retail installment loans or participations in pools of leases. A 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. Payments of principal of and interest on asset-backed securities rely entirely on the performance of the underlying assets. Asset-backed securities are generally not insured or guaranteed by the related sponsor or any other entity. Therefore, if the assets or sources of funds available to the issuer are insufficient for the issuer to meet its payment obligations, a Fund will incur losses.

**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, a Fund may utilize the following investments:

• ETFs. A Fund may purchase
 shares of ETFs. ETFs trade like a common stock, and passive ETFs usually represent a fixed portfolio
 of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. Typically, a Fund will purchase
 passive ETF shares to obtain exposure to all or a portion of the stock or bond market. As a shareholder
 of an ETF, a Fund
 would be subject to its ratable share of the ETF's expenses, including its advisory and administration
 expenses, in addition to a
 Fund's own fees and expenses.

• Government
 Money Market Funds. A
 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 a
 Fund invests in government money market
 funds, the Fund becomes a shareholder of that investment company. As a result, Fund shareholders will bear their proportionate
 share of the expenses, including, for example, advisory and administrative fees of the government money market
 funds in which a
 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 a
 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 a
 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.

**Collateralized Debt Obligations** **("CDOs")**<br>CDOs are a type of asset-backed security and include, among other things, collateralized bond obligations ("CBOs"), CLOs and other similarly structured securities. A CBO is a trust which may be backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, second lien loans or other types of subordinate loans, and mezzanine loans, including loans that may be rated below investment grade or equivalent unrated loans and including loans that may be covenant-lite. The cash flows from the CDO trust are generally split into two or more portions, called tranches, varying in risk and yield. Senior tranches are paid from the cash flows from the underlying assets before the junior tranches and equity or "first loss" tranches. Losses are first borne by the equity tranches, next by the junior tranches, and finally by the senior tranches. Senior tranches pay the lowest interest rates but are generally safer investments than more junior tranches because, should there be any default, senior tranches are typically paid first. The most junior tranches, such as equity tranches, would attract the highest interest rates but suffer the highest risk of loss should the holder of an underlying loan default. If some loans default and the cash collected by the CDO is insufficient to pay all of its investors, those in the lowest, most junior tranches suffer losses first. Since it is partially protected from defaults, a senior tranche from a CDO trust typically has higher ratings and lower yields than the underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, more senior CDO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults and aversion to CDO securities as a class.

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The Fund may invest in CDOs (including CLOs and CBOs) and other structured products (see "Structured Products and Structured Notes Risk") sponsored or managed by, or otherwise affiliated with, DoubleLine Capital or related parties of DoubleLine Capital. Such investments may include investments in debt or equity interests issued by the CDO or structured product as well as investments purchased on the secondary market, and the Fund may invest in any tranche of the CDO or structured product, including an equity tranche.

**Currencies**<br>A Fund may have exposure to foreign currencies by using various instruments. A 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.

**Debtor in Possession, Rescue, and Exit Financings**<br>The Fund may invest in debtor-in-possession financings (commonly known as "DIP financings"). DIP financings are arranged when an entity seeks the protections of the bankruptcy court under Chapter 11 of the U.S. Bankruptcy Code. DIP financings allow the entity to continue its business operations while reorganizing under Chapter 11. Such financings constitute senior liens on unencumbered assets (i.e., assets not subject to other creditors' claims).<br>The Fund may invest in rescue financing which is provided to issuers that are experiencing, or are expected to experience, severe financial difficulties, such as liquidity shortfalls, temporary operational problems, pending debt maturities or over-leveraged balance sheets. Such issuers may not be able to access alternative sources of funding, such as bank loans.<br>The Fund may also invest in exit financing, also known as exit facility. Exit financing is the financing provided to issuers seeking the protections of the bankruptcy court under Chapter 11 of the U.S. Bankruptcy Code to allow them to emerge from bankruptcy. The availability of adequate exit financing for an issuer may be a condition to the confirmation of a plan of reorganization. Such reorganized issuers will use exit financing in order to pay the claims of creditors under the plan of reorganization and to fund their operations after bankruptcy.

**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, commodities, options, futures, interest rates, credit rating, volatility measures, indices or currencies. A Fund may invest in the following derivative instruments:

• 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. A  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. A
 Fund may, from time to time, use futures contracts to  equitize cash and expose its portfolio
 to changes in index prices. This can magnify gains and losses in a
 Fund. A
 Fund may invest in the following types of futures
 contracts:

□ *Interest Rate Futures Contracts.* An interest rate futures contract is a contract for the future delivery of an interest-bearing
 debt security.

□ *Treasury Futures Contracts.* A Treasury futures contract is a contract for the future delivery of a U.S. Treasury security.

• Structured
 Notes. Structured
 notes are specially-designed derivative debt instruments that may be issued directly by an issuer
 or special purpose vehicle. The terms of the instrument may be determined or structured by the purchaser and the issuer of
 the note. Payments of principal or interest on these notes may be linked to the value of an index (such as a currency or securities
 index), one or more securities, a commodity or the financial performance of one or more third-party borrowers. The value
 of these notes will normally rise or fall in response to the changes in the performance of the underlying security, index, currency
 or commodity, or the financial condition of such borrowers.

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

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• Bank
 Loans and Senior Loans .
  Bank loans are fixed and floating rate loans arranged through private negotiations between
 a company or a non-U.S. government and one or more financial institutions (lenders). A
 Fund may invest in senior loans,
 which are floating rate loans, sometimes referred to as adjustable rate loans that hold a senior position in the capital structure
 of U.S. and foreign corporations, partnerships or other business entities. Under normal circumstances, senior loans have
 priority of claim ahead of other obligations of a borrower in the event of liquidation. The proceeds of senior loans primarily
 are used to finance leveraged buyouts, recapitalizations, mergers, acquisitions, stock repurchases, refinancings and internal
 growth and for other corporate purposes. Senior loans typically have rates of interest that are redetermined daily, monthly,
 quarterly or semi-annually by reference to a base lending rate, plus a premium or credit spread. Bank loans and senior
 loans may be collateralized or uncollateralized, and even collateralized loans may not be fully collateralized, and the collateral
 may be unavailable or insufficient to meet the obligations of the borrower. They typically pay interest at rates that float
 above, or are adjusted periodically based on, a benchmark that reflects current interest rates. Some
 of the loans in which a
 Fund may invest or obtain exposure to may be "covenant-lite" loans. Covenant-lite loans may contain fewer, or no maintenance
 covenants compared to other loans and may not include terms which allow the lender to monitor the performance
 of the borrower and declare a default if certain criteria are breached. A
 Fund may invest in loans in the form of participations
 in loans and assignments of all or a portion of loans from third parties. Loan participations typically represent direct
 participation, together with other parties, in a loan to a corporate borrower, and generally are offered by banks or other financial
 institutions or lending syndicates. The purchaser of an assignment typically succeeds to all the rights and obligations of
 the assigning institution and becomes a lender under the credit agreement with respect to the debt obligation; however, the
 purchaser 's rights can be more restricted than those of the assigning institution, and, in any event, a
 Fund may not be able
 to unilaterally enforce all rights and remedies under the loan and with regard to any associated collateral. A participation typically
 results in a contractual relationship only with the institution participating out the interest, not with the borrower. In connection
 with purchasing participations in such instruments, a
 Fund generally will have no right to enforce compliance by the
 borrower with the terms of the loan agreement, nor any rights of set-off against the borrower, and a
 Fund may not benefit
 directly from any collateral supporting the loan in which it has purchased the participation. As a result, a
 Fund will be exposed
 to the credit risk of both the borrower and the institution selling the participation. When a
 Fund purchases assignments
 from lenders, it will acquire direct rights against the borrower on the loan.

• 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 a developing 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.

• Debt
 Securities of Supranational Organizations. 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 payments of interest and principal. Obligations of a supranational entity may be denominated
 in foreign currencies.

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• Delayed
 Funding Loans and Revolving Credit Facilities. A
 Fund may enter into, or acquire participations in, delayed funding
 loans and revolving credit facilities, which are sometimes referred to as unfunded commitment agreements. Delayed funding
 loans and revolving credit facilities are borrowing arrangements in which a lender agrees to make loans up to a maximum
 amount upon demand by the borrower during a specified term. A revolving credit facility differs from a delayed funding
 loan in that, as the borrower repays the loan, an amount equal to the repayment is again made available to the borrower
 under the facility, whereas, in the case of a delayed funding loan, such amounts may not be "re-borrowed." The borrower
 may at any time borrow and repay amounts so long as, in the aggregate, at any given time the amount borrowed does
 not exceed the maximum amount established by the loan agreement. Delayed funding loans and revolving credit facilities usually
 provide for floating or variable rates of interest. A
 Fund may invest in delayed funding loans and revolving credit facilities
 with credit quality comparable to that of issuers of its securities investments. A
 Fund may treat delayed funding loans and
 revolving credit facilities for which there is no readily available market as illiquid for purposes of a
 Fund's limitation on illiquid
 investments. Delayed funding loans and revolving credit facilities are considered to be debt securities for purposes of a Fund's investment
 restriction relating to making loans. Participation interests in revolving credit facilities will be subject to the limitations
 discussed above regarding participations  in Bank Loans and Senior Loans.

• Frontier
 and Emerging Markets Debt . A Fund may invest
 a significant portion of its assets in debt securities associated with
 a particular geographic region or country, including frontier and emerging markets. A
 Fund may consider a country to be a
 frontier or emerging market country based on a number of factors including, but not limited to, if the country is classified as a
 frontier, 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 a frontier or emerging market country for purposes
 of constructing frontier or emerging market indices. The countries that comprise frontier or emerging markets change
 from time to time. Frontier market countries are a sub-set of emerging market countries with smaller, newer and/or less
 developed economies; less developed, less liquid and/or lower-capitalization capital markets; and less developed political and
 legal systems than those of the more developed, "traditional" emerging markets. These countries typically are located in the
 Asia-Pacific region, Central and Eastern Europe and the former Soviet Union, the Middle East, Central and South America, and
 Africa. Frontier markets may offer higher potential for gains and losses than investments in the developed and emerging markets
 of the world.

• Government-Sponsored
 Enterprises and U.S. Government Agencies. A
 Fund may invest in debt obligations of U.S. government
 agencies, such as the Government National Mortgage Association ("Ginnie Mae" or "GNMA") and 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 such 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, and 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.

• High-Yield
 Bonds. High yield,
 non-investment grade bonds (also known as "junk bonds") are low-quality, high-risk corporate
 bonds that generally offer a high level of current income. High yield bonds are considered speculative by rating organizations.
 For example, Moody's, S&P Global Ratings and Fitch, Inc. rate them below Baa3, BBB- and BBB-, respectively. Please
 see "**Appendix C Ratings Definitions** "
 in the SAI for an explanation of the ratings applied to high yield bonds. High yield
 bonds are often issued as a result of corporate restructurings, such as leveraged buyouts, mergers, acquisitions, or other similar
 events. They may also be issued by smaller, less creditworthy companies or by highly leveraged firms, which are generally
 less able to make scheduled payments of interest and principal than more financially stable firms. Because of their low
 credit quality, high-yield bonds must pay higher interest to compensate investors for the substantial credit risk they assume.
 Lower-rated securities are subject to additional risks that may not be present with investments in higher-grade securities.
 Investors should consider carefully their ability to assume the risks associated with lower-rated securities before investing
 in a Fund.

• Inflation
 Index-Linked Securities. Inflation index-linked securities, also known as inflation-protected securities, are fixed income
 instruments structured such that their interest and principal payments are adjusted to increase and decrease with changes
 in official inflation rates. In periods of deflation when the inflation rate is declining, the principal value of an inflation index-linked
 security will be adjusted downward. This will result in a decrease in the interest payments.

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• Municipal
 Securities . Municipal
 securities are debt obligations that are exempt from federal, state and/or local income taxes
 that generally are issued to raise funding for various public purposes, including general financing for state and local governments,
 or financing for a specific project or public facility. Municipal securities may be fully or partially backed by the taxing
 authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project
 or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance,
 and are generally classified into general obligation bonds and special revenue obligations. General obligation bonds are
 secured by the issuer's pledge of its full faith and credit including, if available, its taxing power for the payment of principal and interest. Issuers
 of general obligation bonds include states, counties, cities, towns and various regional or special districts. Revenue
 bonds are secured only by a specific revenue source. Although the security behind revenue bonds varies widely, many provide
 additional security in the form of a debt service reserve fund which may also be used to make principal and interest payments
 on the issuer's obligations. In addition, some revenue obligations (as well as general obligations) are insured by a bond
 insurance company or backed by a letter of credit issued by a banking institution.

• Restricted
 Securities . Restricted
 securities, which include private placements of private and public companies, are subject
 to legal or contractual restrictions on their resale. Restricted securities may be difficult to sell at the time and price a portfolio
 prefers. Restricted securities include securities eligible for resale pursuant to Rule 144A, and securities of U.S. and non-U.S.
 issuers initially offered and sold outside the United States pursuant to Regulation S. Restricted securities may not be listed
 on an exchange and may have no active trading market. A
 Fund may incur additional expense and delay when disposing of
 restricted securities, including all or a portion of the cost to register the securities. A
 Fund also may acquire securities through
 private placement transactions under which it may agree to contractual restrictions on the resale of such securities that
 are in addition to applicable legal restrictions. In addition, if the Manager and/or the
 sub-advisor, if applicable, receives non-public
 information about the issuer, the Fund may as a result be unable to sell the securities.

• Sovereign
 and Quasi-Sovereign Debt. Sovereign debt securities are typically issued or guaranteed by national governments
 or their agencies, authorities, instrumentalities, political subdivisions, or by a supranational organization, in order to
 finance the issuing country's growth and/or budget. Sovereign debt may be in the form of conventional securities or other types
 of debt instruments such as loans or loan participations. Investing in foreign sovereign debt securities will expose the Fund
 to the direct or indirect consequences of political, social or economic changes in the countries that issue the debt securities.
 Quasi-sovereign debt securities are debt securities issued by entities that are fully or partially government owned or controlled.
 Quasi-sovereign debt typically is not guaranteed by a sovereign entity.

• 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.

**Illiquid and Restricted Securities**<br>Generally, an illiquid asset is an asset that a 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, as determined pursuant to Rule 22e-4 under the Investment Company Act or as otherwise permitted or required by SEC rules and interpretations. Historically, illiquid securities have included securities that have not been registered under the Securities Act, securities that are otherwise not readily marketable, and repurchase agreements having a remaining maturity of longer than seven calendar days. Securities that have not been registered under the Securities Act are referred to as private placements or restricted securities and are purchased directly from the issuer or in the secondary market. These securities may be sold only in a privately negotiated transaction or pursuant to an exemption from registration. Rule 144A, under the Securities Act, permits the sale of certain unregistered securities to qualified institutional buyers. To the extent privately placed securities held by a Fund qualify under Rule 144A and an institutional market develops for those securities, a Fund likely will be able to dispose of the securities without registering them under the Securities Act. To the extent that institutional buyers become, for a time, uninterested in purchasing these securities, investing in Rule 144A securities could increase the level of a Fund's illiquidity. The Manager or sub-advisor, as applicable, may determine that certain securities qualified for trading under Rule 144A are liquid. Regulation S under the Securities Act permits the sale abroad of securities that are not registered for sale in the United States and includes a provision for U.S. investors, such as a Fund, to purchase such unregistered securities if certain conditions are met. Securities sold in private placement offerings made in reliance on the "private placement" exemption from registration afforded by Section 4(a)(2) of the Securities Act and resold to qualified institutional buyers under Rule 144A under the Securities Act ("Section 4(a)(2) securities") are restricted as to disposition under the federal securities laws, and generally are sold to institutional investors, such as a Fund, that agree they are purchasing the securities for investment and not with an intention to distribute to the public. Any resale by the purchaser must be pursuant to an exempt transaction and may be accomplished in accordance with Rule 144A. Section 4(a)(2) securities normally are resold to other

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institutional investors through or with the assistance of the issuer or dealers that make a market in the Section 4(a)(2) securities, thus providing liquidity. The Manager and the sub-advisor will carefully monitor a Fund's investments in Section 4(a)(2) securities offered and sold under Rule 144A, focusing on such important factors, among others, as valuation, liquidity, and availability of information.

**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 the 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, a 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 a Fund.

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

• Adjustable
 Rate Mortgages. Adjustable
 rate mortgage securities ("ARMs"), like traditional mortgage-backed securities, are
 interests in pools of mortgage loans that provide investors with payments consisting of both principal and interest as mortgage
 loans in the underlying mortgage pool are paid off by the borrowers. Unlike fixed-rate mortgage-backed securities, ARMs
 are collateralized by or represent interests in mortgage loans with variable rates of interest. These interest rates are reset at
 periodic intervals, usually by reference to an interest rate index or market interest rate. Although the rate adjustment feature
 may act as a buffer to reduce sharp changes in the value of adjustable rate securities, these securities are still subject to changes
 in value based on, among other things, changes in market interest rates or changes in the issuer's creditworthiness. Because
 the interest rates are reset only periodically, changes in the interest rate on ARMs may lag changes in prevailing market
 interest rates. Also, some ARMs (or the underlying mortgages) are subject to caps or floors that limit the maximum change
 in the interest rate during a specified period or over the life of the security. As a result, changes in the interest rate on an
 ARM may not fully reflect changes in prevailing market interest rates during certain periods.

• CMOs
 and REMICs. CMOs
 and interests in real estate mortgage investment conduits ("REMICs") are debt securities collateralized
 by mortgages or mortgage pass-through securities. A CMO is a hybrid between a mortgage-backed bond and a mortgage
 pass-through security. 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> CMOs
 may be collateralized by whole mortgage loans but are more typically collateralized by portfolios of mortgage pass-through
 securities guaranteed by Ginnie Mae, Fannie Mae and Freddie Mac 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. <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 trust. 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.

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• 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

 issuers (such as commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage
 bankers and other secondary market issuers) may be supported by various forms of insurance or guarantees, including
 individual loan, title, pool and hazard insurance and letters of credit, which may be issued by governmental entities, private
 insurers or the mortgage poolers. The pools underlying privately-issued mortgage pass through securities consist of mortgage
 loans secured by mortgages or deeds of trust creating a first lien on commercial, residential, residential multi-family and
 mixed residential/commercial properties. These mortgage pass-through securities do not have the same credit standing as U.S.
 government guaranteed securities and generally offer a higher yield than similar securities issued by a government entity. The
 timely payment of interest and principal on mortgage loans in these pools may be supported by various other forms of insurance
 or guarantees, including individual loan, pool and hazard insurance, subordination and letters of credit. Some mortgage
 pass-through securities issued by private organizations may not be readily marketable, may be more difficult to value
 accurately and may be more volatile than similar securities issued by a government entity. Transactions in mortgage pass-through
 securities often occur through to-be-announced ("TBA") transactions.

**Other Investment Companies**<br>A Fund, at times, may invest in shares of other investment companies. A 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, a Fund becomes a shareholder of that investment company. As a result, Fund shareholders indirectly will bear a 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 a Fund's own operations. These other fees and expenses, if applicable, are reflected as Acquired Fund Fees and Expenses and are included in the Fees and Expenses Table for a Fund in this Prospectus. Investment in other investment companies may involve the payment of substantial premiums above the value of such issuer's portfolio securities.

• ETFs. A Fund may invest
 in ETFs. ETFs trade like a common stock, and passively-managed ETFs usually represent a fixed portfolio
 of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. ETF
 shares typically are purchased and redeemed through in-kind purchases and redemptions, and trade on a stock exchange at
 market prices, which may differ from an ETF's NAV. Typically, a
 Fund would purchase passive ETF shares to obtain exposure to
 all or a portion of the stock or bond market. As a shareholder of an ETF, a
 Fund would be subject to its ratable share of the ETF's
 expenses, including its advisory and administration expenses. An investment in an ETF generally presents the same primary
 risks as an investment in a conventional mutual fund (i.e., one that is not exchange-traded) that has the same investment
 objective, strategies and policies but also presents some additional risks due to being exchange-traded. The price of
 an ETF can fluctuate within a wide range.

• Government
 Money Market Funds. A
 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. A Fund could invest
 in government money market funds rather than purchasing individual short-term investments. If a
 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 a
 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.

**Repurchase Agreements**<br>Repurchase agreements are transactions in which the Fund purchases a security or basket of securities and simultaneously commits to resell that security or basket to the seller (a bank, broker or dealer) at a mutually agreed-upon date and price. The resale price reflects the purchase price plus an agreed-upon market rate of interest which is unrelated to the coupon rate or date of maturity of

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the purchased security. The term of these agreements usually ranges from overnight to one week, and never exceeds one year. Repurchase agreements with a term of over seven days are considered illiquid. The use of repurchase agreements involves counterparty risk and credit risk. The obligations of a counterparty to a repurchase agreement are not guaranteed. The Fund permits various forms of securities as collateral whose values fluctuate and that are not issued or guaranteed by the U.S. government. There are risks that a counterparty may default at a time when the collateral has declined in value, or a counterparty may become insolvent and subject to liquidation, which may affect the Fund's right to control the collateral.

**Stressed, Distressed and Defaulted Securities**<br>Stressed, distressed or defaulted securities generally include securities of issuers that are financially troubled or are the subject of bankruptcy proceedings, on which the issuer is not currently making interest or principal payments (i.e., in default) or at risk of being in default, or rated in the lowest rating category by a credit rating agency.

**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 a Fund with a certain degree of protection against increases in interest rates, although a 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.

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**About Your Investment**

**Choosing Your Share Class**

Each Fund offers various classes of shares. Each share class of a Fund represents an investment in the same portfolio of securities for the Fund, but each class has its own expense structure and combination of purchase restrictions and ongoing fees, allowing you to choose the class that best fits your situation.

Factors you should consider when choosing a class of shares include:

• How
 long you expect to own the shares;

• How
 much you intend to invest;

• Total
 expenses associated with owning shares of each class;

• Whether
 you plan to take any distributions in the near future; and

• Availability
 of share classes.

Each investor's financial considerations are different. You should speak with your financial professional to help you decide which share class is best for you.

**Purchase and Redemption of Shares**

*Eligibility*

The Y Class and Investor Class shares offered in this Prospectus are available to eligible investors who meet the minimum initial investment. American Beacon Funds do not accept accounts registered to foreign individuals or entities, including foreign correspondent accounts. The Fund does not conduct operations and is not offered for purchase outside of the United States.

Subject to your eligibility, as described below, you may invest in the Fund through intermediary organizations, such as broker-dealers, insurance companies, plan sponsors, third party administrators, and retirement plans. As described below, the Manager may allow certain individuals to invest directly in the Fund in its sole discretion.

If you are eligible and invest directly with the Fund, the fees and policies with respect to the Fund's shares that are outlined in this Prospectus are set by the Fund. The Manager and the Fund are not responsible for determining the suitability of the Fund or a share class for any investor.

If you invest through a financial intermediary, most of the information you will need for managing your investment will come from your financial intermediary. This includes information on how to buy, sell and exchange shares of the Fund. If you establish an account through a financial intermediary, the investment minimums described in this section may not apply. Investors investing in the Fund through a financial intermediary should consult with their financial intermediary to ensure they obtain all information regarding the differences between available share classes. Your broker-dealer or financial intermediary also may charge fees that are in addition to those described in this Prospectus. Please contact your intermediary for information regarding investment minimums, how to purchase and redeem shares and applicable fees.

*Minimum Investment Amount by Share Class*

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| | | | |
|:---|:---|:---|:---|
|  | **New Account** | **Existing Account** | **Existing Account** |
| **Share Class** | **Minimum Initial Investment Amount** | **Purchase/Redemption Minimum by** **check/ACH/Exchange** | **Purchase/Redemption Minimum by Wire** |
| Investor | $2500 | $50 | $250 |
| Y | $100000 | $50 |  |

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The Manager may allow a reasonable period of time after opening an account for a Y Class investor to meet the initial investment requirement. In addition, for investors such as trust companies and financial professionals who make investments for a group of clients, the minimum initial investment can be met through aggregated purchase orders for more than one client.

*Opening an Account*

You may open an account through a retirement plan, an investment professional, a broker-dealer, or other financial intermediary. Please contact your financial intermediary for more information on how to open an account. Shares you purchase through your broker-dealer will normally be held in your account with that firm.

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Direct mutual fund accounts are not available to new shareholders. Existing direct mutual fund account shareholders may continue to buy or sell shares through their existing direct mutual fund accounts, but will not be able to open new direct mutual fund accounts. The Manager may allow the following individuals or entities to open new direct mutual fund accounts in its sole discretion: (i) corporate accounts, (ii) employees of the Manager, or its direct parent company, Resolute Investment Managers, Inc., and its affiliates and subsidiaries, (iii) employees of a sub-advisor to a fund in the American Beacon Funds Complex, (iv) members of the Board, and (v) members of the Manager's Board of Directors.

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 a 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. A Fund is required by law to reject your new account application if the required identifying information is not provided.

A Fund reserves the right to liquidate a shareholder's account at the current day's NAV per share and remit proceeds via check if a 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 Prospectus and SAI.

The Fund has authorized certain third-party financial intermediaries, such as broker-dealers, insurance companies, third-party administrators and trust companies, to receive purchase and redemption orders on behalf of the Fund and to designate other intermediaries to receive purchase and redemption orders on behalf of the Fund. The Fund is deemed to have received such orders when they are received by the financial intermediaries or their designees. Thus, an order to purchase or sell Fund shares will be priced at the Fund's next determined NAV per share after receipt by the financial intermediary or its designee. It is the responsibility of your broker-dealer or financial intermediary to transmit orders that will be received by the Fund in proper form and in a timely manner. The Fund is not responsible for the failure of a broker-dealer or financial intermediary to transmit a purchase order in proper form and in a timely manner.

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 shares of the Fund 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 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. 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*

If you purchased shares of the Fund through your financial intermediary, please contact your broker-dealer or other financial intermediary to sell shares of the Fund. A sale or redemption of your shares is generally taxable to you. See "Distributions and Taxes - Taxes."

The redemption price will be the 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 business day, 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).

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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) generally are transmitted to shareholders on the next day the Fund is open for business. 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.

The Fund reserves the right to suspend redemptions or postpone the date of payment for more than seven days (i) when the NYSE is closed (other than for customary weekend and holiday closings); (ii) when trading on the NYSE is restricted; (iii) when the SEC determines that an emergency exists so that disposal of the Fund's investments or determination of its NAV per share is not reasonably practicable; or (iv) by order of the SEC for protection of the Fund's shareholders.

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 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.

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

*Exchange Policies*

If you purchased shares of a Fund through your financial intermediary, please contact your financial intermediary to determine if you may take advantage of the exchange policies described in this section and for the intermediary's policies to effect an exchange.

Shares of any class of a Fund may be exchanged for shares of the same class of another American Beacon Fund under certain limited circumstances. Since an exchange involves a concurrent redemption and purchase, please review the sections titled ''Redemption Policies'' and ''Purchase Policies'' for additional limitations that apply to redemptions and purchases. If Fund shares were purchased by check, a shareholder must have owned those shares for at least ten days prior to exchanging out of the Fund and into another fund.

The eligibility and minimum investment requirement must be met for the class into which the shareholder is exchanging. Fund shares may be acquired through exchange only in U.S. states and Territories in which they can be legally sold. A Fund reserves the right to charge a fee and to modify or terminate the exchange privilege at any time. A Fund reserves the right to refuse exchange requests if, in the judgment of a Fund, the transaction would adversely affect a Fund and its shareholders. Please refer to the section titled "Frequent Trading and Market Timing" for information on a Fund's policies regarding frequent purchases, redemptions, and exchanges.

Shares of any class of a Fund may be converted to shares of another class of a Fund under certain limited circumstances. For federal income tax purposes, the conversion of shares of one share class of a Fund to shares of a different share class of a Fund will not result in the realization of a capital gain or loss. However, an exchange of shares of a Fund for shares of a different American Beacon Fund generally is considered a redemption and a concurrent purchase, respectively, and thus may result in the realization of capital gain or loss for those purposes.

**How to Purchase, Redeem or Exchange Shares**

If your account is through a broker-dealer or other financial intermediary, please contact them directly to purchase, redeem or exchange shares of a Fund. Your broker-dealer or financial intermediary can help you open a new account, review your financial needs and formulate long-term investment goals and objectives. Your broker-dealer or financial intermediary will transmit your request to a Fund and may charge you a fee for this service. Dealers, other financial intermediaries or fiduciaries purchasing shares for their customers are responsible for determining the suitability of a particular share class for an investor. You should include the following information with any order:

• Your name/account registration

• Your account number

• Type of transaction requested

• Fund name(s) and fund number(s)

• Dollar amount or number of shares

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Transactions for direct shareholders are conducted through:

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| | | |
|:---|:---|:---|
| **Internet** | www.americanbeaconfunds.com | www.americanbeaconfunds.com |
| **Phone** | To reach an American Beacon representative call 1-800-658-5811, option 1<br> Through the Automated Voice Response Service call 1-800-658-5811, option 2 (Investor Class Only) | To reach an American Beacon representative call 1-800-658-5811, option 1<br> Through the Automated Voice Response Service call 1-800-658-5811, option 2 (Investor Class Only) |
| **Mail** | American Beacon Funds<br> PO Box 219643<br> Kansas City, MO 64121-9643 | Overnight Delivery:<br> American Beacon Funds<br> 801 Pennsylvania Ave<br> Suite 219643<br> Kansas City, MO 64105-1307 |

---

**Purchases by Wire:**

Send a bank wire to State Street Bank and Trust Co. with these instructions:

• ABA#
 0110-0002-8; AC-9905-342-3,

• Attn:
 American Beacon Funds,

• the
 fund name and fund number, and

• shareholder
 account number and registration.

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| | | | |
|:---|:---|:---|:---|
|  | **New Account** | **Existing Account** | **Existing Account** |
| **Share Class** | **Minimum Initial Investment Amount** | **Purchase/Redemption Minimum by** **Check/ACH/Exchange** | **Purchase/Redemption Minimum by Wire** |
| Investor | $2500 | $50 | $250 |
| Y | $100000 | $50 |  |

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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 a 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.

Each 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.

*Payments to Financial Intermediaries*

For certain share classes, a Fund and/or the Manager (and/or the Manager's affiliates), at their own expense, may pay compensation to financial intermediaries for shareholder-related services and, if applicable, distribution-related services, including administrative, sub-transfer agency type, recordkeeping and shareholder communication services. For example, compensation may be paid to make Fund shares available to sales representatives and/or customers of a fund supermarket platform or similar program sponsor or for services provided in connection with such fund supermarket platforms and programs.

The amount of compensation paid to different financial intermediaries may differ. The compensation paid to a financial intermediary may be based on a variety of factors, including average assets under management in accounts distributed and/or serviced by the financial intermediary, gross sales by the financial intermediary and/or the number of accounts serviced by the financial intermediary that invest in a Fund. To the extent that a Fund pays any such compensation, it is designed to compensate the financial intermediary for providing services that would otherwise be provided by the Manager, a Fund or its transfer agent. To the extent the Manager or its affiliates pay such compensation, it would likely include amounts from that party's own resources and constitute what is sometimes referred to as ''revenue sharing''.

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Compensation received by a financial intermediary from a Fund, the Manager or an affiliate of the Manager may include payments for marketing and/or training expenses incurred by the financial intermediary, including expenses incurred by the financial intermediary in educating (itself and) its salespersons with respect to Fund shares. For example, such compensation may include reimbursements for expenses incurred in attending educational seminars regarding a Fund, including travel and lodging expenses. It may also cover costs incurred by financial intermediaries in connection with their efforts to sell Fund shares, including costs incurred compensating (registered) sales representatives and preparing, printing and distributing sales literature.

Any compensation received by a financial intermediary, whether from a Fund or the Manager and/or its affiliates, and the prospect of receiving it may provide the financial intermediary with an incentive to recommend the shares of a Fund, or a certain class of shares of a Fund, over other potential investments. Similarly, the compensation may cause financial intermediaries to elevate the prominence of a Fund within its organization by, for example, placing it on a list of preferred funds. You can contact your financial intermediary for details about any such payments it receives from the Manager, its affiliates and/or a Fund, or any other fees, expenses, or commissions your financial intermediary may charge you in addition to those disclosed in this Prospectus.

*Additional Payments with Respect to Y Class Shares*

Y Class shares may also be available on brokerage platforms of firms that have agreements with a Fund's distributor to offer such shares solely when acting as an agent for the investor. An investor transacting in Y Class shares in these programs may be required to pay a commission and/or other forms of compensation to the broker. Shares of a Fund are available in other share classes that have different fees and expenses.

**General Policies**

If a shareholder's account balance falls below the following minimum levels, the shareholder may be asked to increase the balance.

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| | |
|:---|:---|
| **Share Class** | **Account Balance** |
| Y | $25000 |
| Investor | $2500 |

---

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.

A traditional IRA or Roth IRA invested directly will be charged an annual maintenance fee of $15.00 by the Custodian.

An 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 redemptions. Purchases of Fund shares by ACH are subject to a limit of $2,000 per Fund 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.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• 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 per share 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*

Please be advised that certain state escheatment laws may require a Fund to turn over your mutual fund account to the state listed in your account registration as abandoned property unless you contact a 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 Funds 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 or through** **a Fund's** **secure web application.** 

• Access
 your account through a
 Fund's secure web application.

• 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. Unless you hold your shares directly with a Fund, you should contact your broker-dealer, retirement plan, or other third-party intermediary regarding applicable state escheatment laws.

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 Funds<br>P.O. Box 219643<br>Kansas City, MO 64121-9643<br>1-800-658-5811 <br>www.americanbeaconfunds.com

**Frequent Trading and Market Timing**

Frequent trading by Fund shareholders poses risks to other shareholders in a Fund, including: (i) the dilution of a Fund's NAV per share, (ii) an increase in a 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 a Fund's NAV per share is known as market timing.

A Fund's Board of Trustees has adopted policies and procedures intended to discourage frequent trading and market timing. Shareholders may transact one ''round trip'' in a Fund in any rolling 90-day period. A ''round trip'' is defined as two transactions, each in an opposite direction. A round trip may involve either (i) a purchase or exchange into a Fund followed by a redemption or exchange out of a Fund or (ii) a redemption or exchange out of a Fund followed by a purchase or exchange into a Fund. If the Manager detects that a shareholder has exceeded one round trip in a Fund in any rolling 90-day period, the Manager, without prior notice to the shareholder, may prohibit the shareholder from making further purchases of a Fund. In general, a Fund reserves the

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right to reject any purchase order, terminate the exchange privilege, or liquidate the account of any shareholder that the Manager determines has engaged in frequent trading or market timing, regardless of whether the shareholder's activity violates any policy stated in this Prospectus. Additionally, the Manager may in its discretion, reject any purchase or exchange into a Fund from any individual investor, institutional investor, or group whose trading activity could disrupt the management of a Fund or dilute the value of a Fund's shares, including collective trading (e.g., following the advice of an investment newsletter). Such investors may be barred from future purchases of American Beacon Funds.

The round-trip limit does not apply to the following transaction types:

• shares
 acquired through the reinvestment of dividends and other distributions;

• systematic
 purchases and redemptions;

• shares
 redeemed to return excess IRA contributions; or

• certain
 transactions made within a retirement or employee benefit plan, such as payroll contributions, minimum required
 distributions, loans, and hardship withdrawals, or other transactions that are initiated by a party other than the plan
 participant.

Financial intermediaries that offer Fund shares, such as broker-dealers, third-party administrators of retirement plans, and trust companies, will be asked to enforce a Fund's policies to discourage frequent trading and market timing by investors. However, certain intermediaries that offer Fund shares have informed a Fund that they are currently unable to enforce a Fund's policies on an automated basis. In those instances, the Manager will monitor trading activity of the intermediary in an attempt to detect patterns of activity that indicate frequent trading or market timing by underlying investors. In some cases, intermediaries that offer Fund shares have their own policies to deter frequent trading and market timing that differ from a Fund's policies. A Fund may defer to an intermediary's policies. For more information, please contact the financial intermediary through which you invest in a Fund.

The Manager monitors trading activity in a Fund to attempt to identify shareholders engaged in frequent trading or market timing. The Manager may exclude transactions below a certain dollar amount from monitoring and may change that dollar amount from time to time. The ability of the Manager to detect frequent trading and market timing activity by investors who own shares through an intermediary is dependent upon the intermediary's provision of information necessary to identify transactions by the underlying investors. A Fund has entered into agreements with the intermediaries that service a Fund's investors, pursuant to which the intermediaries agree to provide information on investor transactions to a Fund and to act on a Fund's instructions to restrict transactions by investors who the Manager has identified as having violated a Fund's policies and procedures to deter frequent trading and market timing.

Wrap programs offered by certain intermediaries may be designated ''Qualified Wrap Programs'' by a Fund based on specific criteria established by a Fund and a certification by the intermediary that the criteria have been met. A Qualified Wrap Program is a wrap program whose sponsoring intermediary: (i) certifies that it has investment discretion over $50 million or more in client assets invested in mutual funds at the time of the certification, (ii) certifies that it directs transactions in accounts participating in the wrap program(s) in concert with changes in a model portfolio, (iii) provides the Manager a description of the wrap program(s), and (iv) managed by an intermediary that agrees to provide the Manager sufficient information to identify individual accounts in the intermediary's wrap program(s). For purposes of applying the round-trip limit, transactions initiated by clients invested in a Qualified Wrap Program will not be matched to transactions initiated by the intermediary sponsoring the Qualified Wrap Program. For example, a client's purchase of a Fund followed within 90 days by the intermediary's redemption of the Fund would not be considered a round trip. However, transactions initiated by a Qualified Wrap Program client are subject to the round-trip limit and will be matched to determine if the client has exceeded the round-trip limit. In addition, the Manager will monitor transactions initiated by Qualified Wrap Program intermediaries to determine whether any intermediary has engaged in frequent trading or market timing. If the Manager determines that an intermediary has engaged in activity that is harmful to a Fund, the Manager will revoke the intermediary's Qualified Wrap Program status. Upon termination of status as a Qualified Wrap Program, all account transactions will be matched for purposes of testing compliance with a Fund's frequent trading and market timing policies.

A Fund reserves the right to modify the frequent trading and market timing policies and procedures and grant or eliminate waivers to such policies and procedures at any time without advance notice to shareholders. There can be no assurance that a Fund's policies and procedures to deter frequent trading and market timing will have the intended effect or that the Manager will be able to detect frequent trading and market timing.

**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 gains 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

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described in the table under "Taxes"). The Fund does not have a fixed dividend rate nor does it guarantee that it will pay any distributions in any particular period. Distributions paid by the Fund with respect to each class of shares are calculated in the same manner and at the same time, but dividends on different classes of shares may be different as a result of the services and/or fees applicable to certain classes of shares. Any dividends are paid monthly, and any other distributions are paid annually.

*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. 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 distributing class of the Fund. There are four payment options available:

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

• Reinvest
 Only Some Distributions. You can elect to reinvest some types of distributions by the Fund in additional shares of
 the distributing class 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.

• Reinvest
 Your Distributions in shares of another American Beacon Fund. You can reinvest all of your distributions by  the Fund
 on a particular class of shares  in shares of the same class of another American Beacon Fund that is available for exchanges.
 You must have an existing account in the same share class of the selected fund.

Distributions of Fund income are generally taxable to you regardless of the manner in which they are received or reinvested.

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 shares of the distributing class of the Fund 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 shares of the distributing class of the Fund at the NAV per share on the day of the reinvestment. Interest will not accrue on amounts represented by uncashed distribution or redemption checks.

Shareholders investing in the Fund through a financial intermediary should discuss their options for receiving distributions with the intermediary.

*Taxes*

Fund distributions are taxable to shareholders other than tax-qualified retirement plans and accounts and other tax-exempt investors. However, the portion of a 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:

---

| | |
|:---|:---|
| **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

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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 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.

The Fund does not expect a substantial part of its dividends to qualify as QDI or be eligible for the DRD.

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 Internal Revenue Service 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 the 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.

**Additional Information**

The Funds' Board oversees generally the operations of a Fund. The Trust enters into contractual arrangements with various parties, including among others, the Funds' manager, sub-advisor(s), custodian, transfer agent, and accountants, who provide services to a 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 Prospectus provides information concerning a Fund that you should consider in determining whether to purchase Fund shares. Neither this Prospectus nor the SAI is intended, or should be read, to be or create an agreement or contract between the Trust or a 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 Prospectus, the SAI or a Fund's reports to shareholders is intended to provide investment advice and should not be construed as investment advice.

**Service Plans and Service Fees**

The Fund has adopted a shareholder services plan for its Investor Class shares for certain non-distribution shareholder services provided by financial intermediaries. The shareholder services plan authorizes annual payment of up to 0.375% of the average daily net assets attributable to the Investor Class shares. In addition, the Fund may reimburse the Manager for certain non-distribution shareholder services provided by financial intermediaries attributable to Y Class shares of the Fund.

**Portfolio Holdings**

A complete list of the Fund's holdings is made available on the Fund's website on a quarterly basis approximately sixty days after the end of each calendar quarter and remains available for six months thereafter. A list of the Fund's ten largest holdings is made available on the Fund's website on a quarterly basis. The ten largest holdings of the Fund are generally posted to the website

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approximately fifteen days after the end of each calendar quarter and remain available until the next quarter. To access the holdings information, go to www.americanbeaconfunds.com. The Fund's ten largest holdings may also be accessed by selecting the Fund's fact sheet.

A description of the Fund's policies and procedures regarding the disclosure of portfolio holdings is available in the SAI, which you may access on the Fund's website at www.americanbeaconfunds.com or call 1-800-658-5811 to request a free copy.

**Delivery of Documents**

The summary prospectus is available, and the Annual Shareholder Reports and Semi-Annual Shareholder Reports ("Shareholder Reports") will be available, online at www.americanbeaconfunds.com/reports. If you are interested in electronic delivery of the Funds' summary prospectus, please go to www.americanbeaconfunds.com and click on ''Quick Links'' and then ''Register for E-Delivery.''

To reduce expenses, your financial institution may mail only one copy of the materials described above to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please contact your financial institution. Delivery of individual copies will commence thirty days after receiving your request.

**Valuation of Shares**

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

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

Equity securities 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 a 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 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.

Among other things, Rule 2a-5 permits a 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 Rule 2a-5 to perform fair value functions in accordance with the requirements of Rule 2a-5.

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 a Fund occurs after the close of a related exchange but before the determination of a Fund's NAV per share, fair value pricing may be used on the

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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 a Fund invests. In addition, a 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 Funds' fair valuation procedures. You may view a Fund's most recent NAV per share at www.americanbeaconfunds.com by clicking on ''Quick Links'' and then ''Daily NAVs.''

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**Additional Information About Performance Indices**

The annual total return of each Fund is compared to a broad-based securities market index, and may be compared to one or more additional index. Set forth below is additional information regarding the broad-based securities market index and any additional index, if applicable, to which each Fund's performance is compared.

**American Beacon DoubleLine Floating Rate Income Fund**

The Fund's performance is compared to the Bloomberg US Aggregate Bond Index and the S&P UBS Leveraged Loan Index.

• The
  Bloomberg US Aggregate Bond Index is a broad-based benchmark that measures the investment grade, US dollar-denominated,
 fixed-rate taxable bond market.  The index  includes components for Treasuries, government-related and
 corporate securities, fixed-rate agency mortgage-backed securities,  asset-backed securities and commercial mortgage-backed
 securities (agency and non-agency).

• The
 S&P UBS  Leveraged Loan Index is an index designed to mirror the investable universe of the US dollar-denominated leveraged
 loan market.   New loans are added to the index on their effective date if they qualify according to the following
 criteria: Loans must be rated "5B" or lower; only fully- funded term loans are included; the tenor must be at least
 one year; and the Issuers must be domiciled in developed countries (Issuers from developing countries are excluded).
 Fallen angels are added to the index subject to the new loan criteria. Loans are removed from the index when
 they are upgraded to investment grade, or when they exit the market (for example, at maturity, refinancing or bankruptcy
 workout).  Note that issuers remain in the index following default. Total return of the index is the sum of three
 components: principal, interest, and reinvestment return. The cumulative return assumes that coupon payments are
 reinvested into the index at the beginning of each period.

**American Beacon DoubleLine Select Income Fund**

The Fund's performance is compared to the Bloomberg U.S. Aggregate Bond Index. Set forth below is additional information regarding the index to which the Fund's performance is compared.

• The
  Bloomberg US Aggregate Bond Index is a broad-based benchmark that measures the investment grade, US dollar-denominated,
 fixed-rate taxable bond market.  The index  includes components for Treasuries, government-related and
 corporate securities, fixed-rate agency mortgage-backed securities,  asset-backed securities and commercial mortgage-backed
 securities (agency and non-agency).

**<u>Notices Regarding Index Data</u>**

"Bloomberg<sup>®</sup>" and the Bloomberg indices listed herein (the "Indices") are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited ("BISL"), the administrator of the index (collectively, "Bloomberg"), and have been licensed for use for certain purposes by the distributor hereof (the "Licensee").

The financial products named herein (the "Products") are not sponsored, endorsed, sold or promoted by Bloomberg. Bloomberg does not make any representation or warranty, express or implied, to the owners of or counterparties to the Products or any member of the public regarding the advisability of investing in securities or commodities generally or in the Product particularly. The only relationship of Bloomberg to Licensee is the licensing of certain trademarks, trade names and service marks and of the Indices, which are determined, composed and calculated by BISL without regard to Licensee or the Products. Bloomberg has no obligation to take the needs of Licensee or the owners of the Products into consideration in determining, composing or calculating the Indices. Bloomberg is not responsible for and has not participated in the determination of the timing, price, or quantities of the Products to be issued. Bloomberg shall not have any obligation or liability, including, without limitation, to customers of the Products, in connection with the administration, marketing or trading of the Products.

BLOOMBERG DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE INDICES OR ANY DATA RELATED THERETO AND SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS THEREIN. BLOOMBERG DOES NOT MAKE ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OF THE PRODUCT OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDICES OR ANY DATA RELATED THERETO. BLOOMBERG DOES NOT MAKE ANY EXPRESS OR IMPLIED WARRANTIES AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE INDICES OR ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, TO THE MAXIMUM EXTENT ALLOWED BY LAW, BLOOMBERG, ITS LICENSORS, AND ITS AND THEIR RESPECTIVE EMPLOYEES, CONTRACTORS, AGENTS, SUPPLIERS, AND VENDORS SHALL HAVE NO LIABILITY OR RESPONSIBILITY WHATSOEVER FOR ANY INJURY OR DAMAGES—WHETHER DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, PUNITIVE OR OTHERWISE—ARISING IN CONNECTION WITH THE PRODUCT OR INDICES OR ANY DATA OR VALUES RELATING THERETO—WHETHER ARISING FROM THEIR NEGLIGENCE OR OTHERWISE, EVEN IF NOTIFIED OF THE POSSIBILITY THEREOF.

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The "S&P UBS Leveraged Loan Index" is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by American Beacon Advisors, Inc.. S&P®, S&P 500®, SPX®, SPY®, US 500™, The 500™, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); S&P Dow Jones Indices do not make any representation or warranty, express or implied, to the owners of the American Beacon Advisor's Product(s) or any member of the public regarding the advisability of investing in securities generally or in American Beacon Advisor's Product(s) particularly or the ability of the S&P UBS Leveraged Loan Index to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices' only relationship to American Beacon Advisors, Inc. with respect to the S&P UBS Leveraged Loan Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P UBS Leveraged Loan Index is determined, composed and calculated by S&P Dow Jones Indices without regard to American Beacon Advisors, Inc. or the American Beacon Advisor's Product(s). S&P Dow Jones Indices have no obligation to take the needs of American Beacon Advisors, Inc. or the owners of American Beacon Advisor's Product(s) into consideration in determining, composing or calculating the S&P UBS Leveraged Loan Index. S&P Dow Jones Indices have no obligation or liability in connection with the administration, marketing or trading of American Beacon Advisor's Product(s). There is no assurance that investment products based on the S&P UBS Leveraged Loan Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment adviser, commodity trading advisory, commodity pool operator, broker dealer, fiduciary, promoter" (as defined in the Investment Company Act of 1940, as amended), "expert" as enumerated within 15 U.S.C. § 77k(a) or tax advisor. Inclusion of a security, commodity, crypto currency or other asset within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, commodity, crypto currency or other asset, nor is it considered to be investment advice or commodity trading advice. SPDJI provides indices that use environmental, social and/or governance (ESG) indicators (including, without limit, business involvement screens, conformance to voluntary corporate standards, GHG emissions data, and ESG scores) to select, weight and/or exclude constituents. ESG indicators seek to measure a company's, or an asset's performance, with respect to E, S and/or G criteria. ESG indicators are derived from publicly reported data, modelled data, or a combination of reported and modelled data. ESG indicators are based on a qualitative assessment due to the absence of well-defined uniform market standards and the use of multiple methodologies to assess ESG factors. No single clear, definitive test or framework (legal, regulatory, or otherwise) exists to determine labels such as, 'ESG', 'sustainable', 'good governance', 'no adverse environmental, social and/or other impacts', or other equivalently labelled objectives. Therefore, the exercise of subjective judgment is necessary. Different persons may classify the same investment, products and/or strategy differently regarding the foregoing labels.

NEITHER S&P DOW JONES INDICES NOR THIRD PARTY LICENSOR GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P UBS Leveraged Loan Index OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES AND [THIRD PARTY LICENSOR] SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES AND [THIRD PARTY LICENSOR] MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY AMERICAN BEACON ADVISORS, INC., OWNERS OF THE [AMERICAN BEACON ADVISOR'S PRODUCT(S)], OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P UBS Leveraged Loan Index OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES OR [THIRD PARTY LICENSOR] BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. S&P DOW JONES INDICES HAS NOT REVIEWED, PREPARED AND/OR CERTIFIED ANY PORTION OF, NOR DOES S&P DOW JONES INDICES HAVE ANY CONTROL OVER, THE LICENSEE PRODUCT REGISTRATION STATEMENT, PROSPECTUS OR OTHER OFFERING MATERIALS. THERE ARE NO THIRD-PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND AMERICAN BEACON ADVISORS, INC., OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.

**GLOSSARY**

---

| | |
|:---|:---|
| **Advisers Act** | Investment Advisers Act of 1940, as amended |
| **American Beacon or Manager** | American Beacon Advisors, Inc. |
| **Beacon Funds or the Trust** | American Beacon Funds |
| **Board** | Board of Trustees |
| **Capital Gains Distributions** | Distributions of realized net capital gains |
| **CDSC** | Contingent Deferred Sales Charge |
| **CFTC** | Commodity Futures Trading Commission |
| **CLO** | Collateralized Loan Obligation |

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---

| | |
|:---|:---|
| **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 |
| **DRD** | Dividends-received deduction |
| **ESG** | Environmental, Social, and/or Governance |
| **ETF** | Exchange-Traded Fund |
| **EU** | European Union |
| **Fannie Mae** | Federal National Mortgage Association |
| **FFCB** | Federal Farm Credit Banks |
| **FHLB** | Federal Home Loan Bank |
| **FNMA** | Federal National Mortgage Association |
| **Freddie Mac** | Federal Home Loan Mortgage Corporation |
| **GNMA** | Government National Mortgage Association |
| **Internal Revenue Code** | Internal Revenue Code of 1986, as amended |
| **Investment Company Act** | Investment Company Act of 1940, as amended |
| **IRA** | Individual Retirement Account |
| **IRS** | Internal Revenue Service |
| **Junk Bonds** | High yield, non-investment grade bonds |
| **LOI** | Letter of Intent |
| **Management Agreement** | The Fund's Management Agreement with the Manager |
| **NAV** | Fund's net asset value |
| **NYSE** | New York Stock Exchange |
| **Other Distributions** | Distributions of net gains from foreign currency transactions |
| **OTC** | Over-the-Counter |
| **QDI** | Qualified Dividend Income |
| **RIH** | Resolute Investment Holdings, LLC |
| **SAI** | Statement of Additional Information |
| **SEC** | Securities and Exchange Commission |
| **SOFR** | Secured Overnight Financing Rate |
| **State Street** | State Street Bank and Trust Company |
| **SVP** | Signature Validation Program |
| **UGMA** | Uniform gifts to minor |
| **UK** | United Kingdom |
| **UTMA** | Uniform transfers to minor |

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**APPENDIX D: FINANCIAL HIGHLIGHTS**

**Target Funds** <br>The tables that follow present performance information for each class of shares of the Target Funds for the periods shown. This information is intended to help you understand each Target Fund's financial performance for the period of a Target Fund's operations. Certain information reflects financial results for a single Target Fund share. Total return illustrates how much your investment in a Target Fund would have increased or decreased during each period, assuming you had reinvested all dividends and distributions. The information provided below for the fiscal periods ended March 31, 2021, March 31, 2022, March 31, 2023, March 31, 2024, and March 31, 2025 has been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm for the Target Funds for those periods. The Target Trust Board has appointed Deloitte & Touche LLP as the Target Fund's independent registered public accounting firm for the fiscal year ending March 31, 2026. The Target Funds' financial statements and the report of PricewaterhouseCoopers LLP for the fiscal year ended March 31, 2025, are included in the Target Funds' Annual Financial Statements and Other Information for the fiscal year ended March 31, 2025, as filed with the SEC on Form N-CSR, which are available upon request by calling the Target Funds toll-free 877 DLine11 (877 354 6311) or via www.doubleline.com.

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** |
|  | **Class I Shares** | **Class I Shares** | **Class I Shares** | **Class I Shares** | **Class I Shares** |
|  | **Year Ended March** **31, 2025** | **Year Ended March** **31, 2024** | **Year Ended March** **31, 2023** | **Year Ended March** **31, 2022** | **Year Ended March** **31, 2021** |
| Net Asset Value, Beginning of Period | $9.04 | $8.97 | $9.42 | $9.51 | $8.44 |
| **Income (loss) from Investment Operations:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net Investment Income (Loss)<sup>(a)\*</sup> | 0.69 | 0.75 | 0.53 | 0.32 | 0.34 |
| &nbsp;&nbsp;&nbsp; Net Gain (Loss) on Investments (Realized and Unrealized) | (0.15) | 0.08 | (0.42) | (0.09) | 1.07 |
| Total from Investment Operations | 0.54 | 0.83 | 0.11 | 0.23 | 1.41 |
| **Less Distributions:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Distributions from Net Investment Income | (0.70) | (0.76) | (0.56) | (0.32) | (0.34) |
| Total Distributions | (0.70) | (0.76) | (0.56) | (0.32) | (0.34) |
| Net Asset Value, End of Period | $8.88 | $9.04 | $8.97 | $9.42 | $9.51 |
| Total Return<sup>(b)</sup> | 6.12% | 9.61% | 1.31% | 2.40% | 16.95% |
| &nbsp;&nbsp;&nbsp; Net Assets, End of Period (Thousands) | $135642 | $162269 | $200203 | $333518 | $240442 |
| **Ratios to Average Net Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Expenses Before Advisory Fees (Waived) and Other Fees (Reimbursed)/Recouped | 0.79% | 0.74% | 0.68% | 0.64% | 0.72% |
| &nbsp;&nbsp;&nbsp; Expenses After Investment Advisory Fees (Waived)<sup>(c)</sup> | 0.79% | 0.74% | 0.68% | 0.64% | 0.72% |
| &nbsp;&nbsp;&nbsp; Expenses After Advisory Fees (Waived) and Other Fees (Reimbursed)/Recouped<sup>(c)</sup> | 0.79% | 0.74% | 0.68% | 0.64% | 0.72% |
| Net Investment Income (Loss)<sup>(c)</sup> | 7.63% | 8.34% | 5.81% | 3.37% | 3.69% |
| Portfolio Turnover<sup>(b)</sup> | 65% | 50% | 17% | 40% | 76% |

---

(a) Calculated
 based on average shares outstanding during the period.

(b) Not
 annualized for periods less than one year.

(c) Annualized
 for periods less than one year.

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** | **DoubleLine Floating Rate Fund** |
|  | **Class N Shares** | **Class N Shares** | **Class N Shares** | **Class N Shares** | **Class N Shares** |
|  | **Year Ended March** **31, 2025** | **Year Ended March** **31, 2024** | **Year Ended March** **31, 2023** | **Year Ended March** **31, 2022** | **Year Ended March** **31, 2021** |
| Net Asset Value, Beginning of Period | $9.07 | $8.99 | $9.44 | $9.53 | $8.45 |
| **Income (Loss) from Investment Operations:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net Investment Income (Loss)<sup>(a)</sup> | 0.67 | 0.73 | 0.48 | 0.30 | 0.32 |
| &nbsp;&nbsp;&nbsp; Net Gain (Loss) on Investments (Realized and Unrealized) | (0.16) | 0.08 | (0.40) | (0.10) | 1.08 |
| &nbsp;&nbsp;&nbsp; Total from Investment Operations | 0.51 | 0.81 | 0.08 | 0.20 | 1.40 |
| **Less Distributions:** |  |  |  |  |  |
| Distributions from Net Investment Income | (0.67) | (0.73) | (0.53) | (0.29) | (0.32) |
| Total Distributions | (0.67) | (0.73) | (0.53) | (0.29) | (0.32) |
| Net Asset Value, End of Period | $8.91 | $9.07 | $8.99 | $9.44 | $9.53 |
| Total Return<sup>(b)</sup> | 5.84% | 9.43% | 1.04% | 2.15% | 16.73% |
| &nbsp;&nbsp;&nbsp; Net Assets, End of Period (Thousands) | $16905 | $17070 | $20603 | $45362 | $18339 |
| **Ratios to Average Net Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Expenses Before Advisory Fees (Waived) and Other Fees (Reimbursed)/Recouped<sup>(c)</sup> | 1.04% | 0.99% | 0.92% | 0.90% | 0.98% |
| &nbsp;&nbsp;&nbsp; Expenses After Investment Advisory Fees (Waived)<sup>(c)</sup> | 1.04% | 0.99% | 0.92% | 0.90% | 0.98% |
| &nbsp;&nbsp;&nbsp; Expenses After Advisory Fees (Waived) and Other Fees (Reimbursed)/Recouped<sup>(c)</sup> | 1.04% | 0.99% | 0.92% | 0.90% | 0.98% |
| Net Investment Income (Loss)<sup>(c)</sup> | 7.38% | 8.10% | 5.32% | 3.16% | 3.54% |
| Portfolio Turnover Rate<sup>(b)</sup> | 65% | 50% | 17% | 40% | 76% |

---

(a) Calculated
 based on average shares outstanding during the period.

(b) Not
 annualized for periods less than one year.

(c) Annualized
 for periods less than one year.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **DoubleLine Infrastructure Income Fund** | **DoubleLine Infrastructure Income Fund** | **DoubleLine Infrastructure Income Fund** | **DoubleLine Infrastructure Income Fund** | **DoubleLine Infrastructure Income Fund** | **DoubleLine Infrastructure Income Fund** |
|  | **Class I Shares** | **Class I Shares** | **Class I Shares** | **Class I Shares** | **Class I Shares** |
|  | **Year Ended March** **31, 2025** | **Year Ended March** **31, 2024** | **Year Ended March** **31, 2023** | **Year Ended March** **31, 2022** | **Year Ended March** **31, 2021** |
| Net Asset Value, Beginning of Period | $9.22 | $9.05 | $9.67 | $10.46 | $9.56 |
| **Income (Loss) from Investment Operations:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net Investment Income (Loss)<sup>(a)</sup> | 0.39 | 0.34 | 0.28 | 0.27 | 0.29 |
| &nbsp;&nbsp;&nbsp; Net Gain (Loss) on Investments (Realized and Unrealized) | 0.19 | 0.16 | (0.60) | (0.71) | 0.92 |
| Total from Investment Operations | 0.58 | 0.50 | (0.32) | (0.44) | 1.21 |
| **Less Distributions:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Distributions from Net Investment Income | (0.39) | (0.33) | (0.27) | (0.28) | (0.31) |
| Distributions from Net Realized Gain |  |  | (0.03) | (0.07) |  |
| Total Distributions | (0.39) | (0.33) | (0.30) | (0.35) | (0.31) |
| Net Asset Value, End of Period | $9.41 | $9.22 | $9.05 | $9.67 | $10.46 |
| Total Return<sup>(b)</sup> | 6.41% | 5.68% | (3.24)% | (4.39)% | 12.73% |
| &nbsp;&nbsp;&nbsp; Net Assets, End of Period (Thousands) | $356526 | $358912 | $346227 | $521889 | $566994 |
| **Ratios to Average Net Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Expenses Before Advisory Fees (Waived) and Other Fees (Reimbursed)/Recouped<sup>(c)</sup> | 0.59% | 0.57% | 0.57% | 0.57% | 0.56% |
| &nbsp;&nbsp;&nbsp; Expenses After Investment Advisory Fees (Waived)<sup>(c)</sup> | 0.59% | 0.57% | 0.57% | 0.57% | 0.56% |
| &nbsp;&nbsp;&nbsp; Expenses After Advisory Fees (Waived) and Other Fees (Reimbursed)/Recouped<sup>(c)</sup> | 0.59% | 0.57% | 0.57% | 0.57% | 0.56% |
| Net Investment Income (Loss)<sup>(c)</sup> | 4.14% | 3.72% | 3.02% | 2.63% | 2.82% |
| Portfolio Turnover Rate<sup>(b)</sup> | 45% | 49% | 8% | 23% | 39% |

---

(a) Calculated
 based on average shares outstanding during the period.

(b) Not
 annualized for periods less than one year.

(c) Annualized
 for periods less than one year.

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **DoubleLine Infrastructure Income Fund** | **DoubleLine Infrastructure Income Fund** | **DoubleLine Infrastructure Income Fund** | **DoubleLine Infrastructure Income Fund** | **DoubleLine Infrastructure Income Fund** | **DoubleLine Infrastructure Income Fund** |
|  | **Class N Shares** | **Class N Shares** | **Class N Shares** | **Class N Shares** | **Class N Shares** |
|  | **Year Ended March** **31, 2025** | **Year Ended March** **31, 2024** | **Year Ended March** **31, 2023** | **Year Ended March** **31, 2022** | **Year Ended March** **31, 2021** |
| Net Asset Value, Beginning of Period | $9.23 | $9.06 | $9.68 | $10.46 | $9.56 |
| **Income (Loss) from Investment Operations:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net Investment Income (Loss)<sup>(a)</sup> | 0.36 | 0.33 | 0.25 | 0.25 | 0.27 |
| &nbsp;&nbsp;&nbsp; Net Gain (Loss) on Investments (Realized and Unrealized) | 0.20 | 0.15 | (0.59) | (0.71) | 0.92 |
| Total from Investment Operations | 0.56 | 0.48 | (0.34) | (0.46) | 1.19 |
| **Less Distributions:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Distributions from Net Investment Income | (0.37) | (0.31) | (0.25) | (0.25) | (0.29) |
| Distributions from Net Realized Gain |  |  | (0.03) | (0.07) |  |
| Total Distributions | (0.37) | (0.31) | (0.28) | (0.32) | (0.29) |
| Net Asset Value, End of Period | $9.42 | $9.23 | $9.06 | $9.68 | $10.46 |
| Total Return<sup>(b)</sup> | 6.14% | 5.42% | (3.49)% | (4.60)% | 12.45% |
| &nbsp;&nbsp;&nbsp; Net Assets, End of Period (Thousands) | $6388 | $6971 | $601 | $1794 | $9700 |
| **Ratios to Average Net Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Expenses Before Advisory Fees (Waived) and Other Fees (Reimbursed)/Recouped<sup>(c)</sup> | 0.84% | 0.83% | 0.82% | 0.82% | 0.81% |
| &nbsp;&nbsp;&nbsp; Expenses After Investment Advisory Fees (Waived)(c) | 0.84% | 0.83% | 0.82% | 0.82% | 0.81% |
| &nbsp;&nbsp;&nbsp; Expenses After Advisory Fees (Waived) and Other Fees (Reimbursed)/Recouped<sup>(c)</sup> | 0.84% | 0.83% | 0.82% | 0.82% | 0.81% |
| Net Investment Income (Loss)<sup>(c)</sup> | 3.88% | 3.60% | 2.74% | 2.38% | 2.58% |
| Portfolio Turnover Rate<sup>(b)</sup> | 45% | 49% | 8% | 23% | 39% |

---

(a) Calculated
 based on average shares outstanding during the period.

(b) Not
 annualized for periods less than one year.

(c) Annualized
 for periods less than one year.

------

[Back to **Table of Contents**](#TOC_2681)

**Acquiring Floating Rate Income Fund**<br>The financial highlights tables are intended to help you understand the Acquiring Floating Rate Income Fund's financial performance for the past five fiscal years or, if shorter, the period of the Acquiring Floating Rate Income Fund's operations, as applicable. Certain information reflects financial results for a single Acquiring Floating Rate Income Fund share. The total returns in the Acquiring Floating Rate Income Fund's tables represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and other distributions). The information in the financial highlights for the fiscal years ended August 31, 2022, August 31, 2023 and August 31, 2024 have been derived from the Acquiring Floating Rate Income Fund's financial statements audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, whose report, along with the Acquiring Floating Rate Income Fund's financial statements, is included in the Acquiring Floating Rate Income Fund's annual Form N-CSR, which you may obtain upon request. The information for the fiscal years ended August 31, 2020 and August 31, 2021 was audited by the Fund's prior independent registered public accounting firm. The information for the fiscal period ended February 28, 2025 has not been audited.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** | **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** | **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** | **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** | **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** | **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** | **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** |
| | **Y Class** | **Y Class** | **Y Class** | **Y Class** | **Y Class** | **Y Class** |
| <br>**For a share outstanding throughout the** **period:** | **Six Months Ended** **February 28, 2025** **(unaudited)** | **Year Ended August** **31, 2024** | **Year Ended August** **31, 2023<sup>A</sup>** | **Year Ended August** **31, 2022** | **Year Ended August** **31, 2021** | **Year Ended August** **31, 2020** |
| **Net asset value, beginning of** **period** | $8.00 | $8.18 | $8.50 | $9.30 | $8.82 | $9.80 |
| **Income (loss) from investment** **operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income | 0.38B | 0.48 | 0.36 | 0.44 | 0.38 | 0.46 |
| &nbsp;&nbsp;&nbsp; Net gains (losses) on investments (both realized and unrealized) | (0.47) | 0.20 | 0.08 | (0.79) | 0.54 | (0.89) |
| Total income (loss) from investment operations | (0.09) | 0.68 | 0.44 | (0.35) | 0.92 | (0.43) |
| **Less distributions:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Dividends from net investment income | (0.41) | (0.86) | (0.76) | (0.45) | (0.44) | (0.55) |
| Net asset value, end of period | $7.50 | $8.00 | $8.18 | $8.50 | $9.30 | $8.82 |
| Total return<sup>C</sup> | (1.27)%D | 8.70% | 5.61% | (3.93)% | 10.60% | (4.24)% |
| Ratios and supplemental data: |  |  |  |  |  |  |
| Net assets, end of period | $35862461 | $75439353 | $120044420 | $346503063 | $356429827 | $323133710 |
| Ratios to average net assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Expenses, before reimbursements and/or recoupments | 1.20%E | 1.03% | 1.07% | 0.95% | 0.95% | 0.96% |
| &nbsp;&nbsp;&nbsp; Expenses, net of reimbursements and/or recoupments | 0.92%EF | 0.89%<sup>F</sup> | 0.88% | 0.88% | 0.91%<sup>G</sup> | 0.96% |
| &nbsp;&nbsp;&nbsp; Net investment income, before expense reimbursements and/or recoupments | 9.44%E | 10.06% | 8.51% | 4.67% | 3.95% | 6.21% |
| &nbsp;&nbsp;&nbsp; Net investment income, net of reimbursements and/or recoupments | 9.72%E | 10.20% | 8.70% | 4.74% | 3.99% | 6.21% |
| Portfolio turnover rate | 119%D | 128% | 120% | 82% | 75% | 56% |

---

---

| | |
|:---|:---|
| A | On December 30, 2022 Sound Point Capital Management, LP was terminated and ceased managing assets of the Fund. On December 31, 2022, First Eagle Alternative Credit, LLC., began managing assets of the Fund. |
| B | Per share amounts have been calculated using the average shares method. |
| C | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. |
| D | Not annualized. |
| E | Annualized. |
| F | Expense ratios may exceed stated expense caps in Note 2 in the Annual Financial Statements due to loan interest expenses. |
| G | Expense ratios may exceed stated expense caps in Note 2 in the Annual Financial Statements due to the change in the contractual expense caps on December 31, 2020. |

---

------

[Back to **Table of Contents**](#TOC_2681)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** | **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** | **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** | **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** | **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** | **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** | **American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund)** |
| | **Investor Class** | **Investor Class** | **Investor Class** | **Investor Class** | **Investor Class** | **Investor Class** |
| <br>**For a share outstanding throughout the** **period:** | **Six Months Ended** **February 28, 2025** **(unaudited)** | **Year Ended August** **31, 2024** | **Year Ended August** **31, 2023<sup>A</sup>** | **Year Ended August** **31, 2022** | **Year Ended August** **31, 2021** | **Year Ended August** **31, 2020** |
| **Net asset value, beginning of** **period** | $7.98 | $8.15 | $8.48 | $9.28 | $8.80 | $9.78 |
| **Income (loss) from investment** **operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income | 0.37B | 0.36 | 0.26 | 0.26 | 0.29 | 0.30 |
| &nbsp;&nbsp;&nbsp; Net gains (losses) on investments (both realized and unrealized) | (0.47) | 0.30 | 0.15 | (0.64) | 0.60 | (0.76) |
| Total income (loss) from investment operations | (0.10) | 0.66 | 0.41 | (0.38) | 0.89 | (0.46) |
| **Less distributions:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Dividends from net investment income | (0.40) | (0.83) | (0.74) | (0.42) | (0.41) | (0.52) |
| Net asset value, end of period | $7.48 | $7.98 | $8.15 | $8.48 | $9.28 | $8.80 |
| Total return<sup>C</sup> | (1.42)%D | 8.52% | 5.17% | (4.22)% | 10.31% | (4.53)% |
| **Ratios and supplemental data:** |  |  |  |  |  |  |
| Net assets, end of period | $10370952 | $13553137 | $19472632 | $36350376 | $52900976 | $57117869 |
| Ratios to average net assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Expenses, before reimbursements and/or recoupments | 1.49%E | 1.31% | 1.33% | 1.21% | 1.22% | 1.24% |
| &nbsp;&nbsp;&nbsp; Expenses, net of reimbursements and/or recoupments | 1.21%EF | 1.17%<sup>F</sup> | 1.16% | 1.16% | 1.18%<sup>G</sup> | 1.24% |
| &nbsp;&nbsp;&nbsp; Net investment income, before expense reimbursements and/or recoupments | 9.23%E | 9.77% | 8.52% | 4.38% | 3.68% | 5.99% |
| &nbsp;&nbsp;&nbsp; Net investment income, net of reimbursements and/or recoupments | 9.51%E | 9.91% | 8.69% | 4.43% | 3.72% | 5.99% |
| Portfolio turnover rate | 119%D | 128% | 120% | 82% | 75% | 56% |

---

---

| | |
|:---|:---|
| A | On December 30, 2022 Sound Point Capital Management, LP was terminated and ceased managing assets of the Fund. On December 31, 2022, First Eagle Alternative Credit, LLC began managing assets of the Fund. |
| B | Per share amounts have been calculated using the average shares method. |
| C | Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. May include adjustments in accordance with U.S. GAAP and as such, the net asset value for reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. |
| D | Not annualized. |
| E | Annualized. |
| F | Expense ratios may exceed stated expense caps in Note 2 in the Annual Financial Statements due to loan interest expenses. |
| G | Expense ratios may exceed stated expense caps in Note 2 in the Annual Financial Statements due to the change in the contractual expense caps on December 31, 2020. |

---

**STATEMENT OF ADDITIONAL INFORMATION**

[XX XX, 2025]

**DoubleLine Floating Rate Fund and**

**DoubleLine Select Income Fund (formerly, DoubleLine Infrastructure Income Fund),**

each a series of DoubleLine Funds Trust

2002 North Tampa Street, Suite 200, Tampa, FL 33602

1-855-206-1250

**American Beacon DoubleLine Floating Rate Income Fund**

**American Beacon DoubleLine Select Income Fund,**

each a series of American Beacon Funds

220 East Las Colinas Boulevard Suite 1200 Irving, Texas 75039

1-817-391-6100

---

| | | |
|:---|:---|:---|
|  **Acquisition of the Assets and Assumption of the** **Liabilities of:** |  | **By and in Exchange for Shares of:** |
| DoubleLine Floating Rate Fund | → | American Beacon DoubleLine Floating Rate Income Fund |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I Shares | → | Y Class Shares |
| &nbsp;&nbsp;&nbsp;&nbsp; Class N Shares | → | Investor Class Shares |
| DoubleLine Select Income Fund (formerly, DoubleLine Infrastructure Income Fund) | → | American Beacon DoubleLine Select Income Fund |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I Shares | → | Y Class Shares |
| &nbsp;&nbsp;&nbsp;&nbsp; Class N Shares | → | Investor Class Shares |

---

This Statement of Additional Information ("SAI") relates specifically to the proposed reorganizations (the "Reorganizations") of the DoubleLine Floating Rate Fund, and DoubleLine Select Income Fund (formerly, DoubleLine Infrastructure Income Fund) (each, a "Target Fund" and together, the "Target Funds"), each a series of DoubleLine Funds Trust (the "Target Trust") into the American Beacon DoubleLine Floating Rate Income Fund, and American Beacon DoubleLine Select Income Fund, respectively (each, an "Acquiring Fund" or a "Fund" and together, the "Acquiring Funds" or "Funds"), each a series of the American Beacon Funds ("Acquiring Trust" or "Trust"). At the time of Reorganizations, shareholders of each Target Fund automatically will become shareholders of the corresponding Acquiring Fund, by receiving the same percentage of shares of the relevant class (as set forth in the chart above) of the Acquiring Fund issued in the Reorganization as the Target Fund shareholder's percentage ownership of the relevant class of shares of the Target Fund immediately before the Reorganization.

This SAI, which is not a prospectus, supplements and should be read in conjunction with the Combined Proxy Statement and Prospectus ("Proxy Statement/Prospectus" or "Prospectus") dated [XX XX, 2025] relating to the Reorganizations for the special meeting of shareholders of the Target Funds. The Proxy Statement/Prospectus is a proxy statement for the Target Fund shareholders and a prospectus for the shares of the Acquiring Funds that would be issued in connection with the Reorganizations. Copies of the Proxy Statement/Prospectus may be obtained without charge, upon request, by writing to the Target Trust at DoubleLine Funds c/o U.S. Bank Global Fund Services, P.O. Box 219252 Kansas City, MO 64121-9252, calling (toll-free) (877) 354-6311, or on the Target Funds' website, www.doubleline.com.

The American Beacon DoubleLine Select Income Fund has not commenced operations as of the date hereof. Accordingly, financial statements for the American Beacon DoubleLine Select Income Fund are not available. [Financial statements for the American Beacon](https://www.sec.gov/ix?doc=/Archives/edgar/data/809593/000119312524249769/d872922dncsr.htm) [DoubleLine Floating Rate Income Fund, and accompanying notes, appearing in Item 7 of the Fund's Form N-CSR for the fiscal year ended August 31, 2024](https://www.sec.gov/ix?doc=/Archives/edgar/data/809593/000119312524249769/d872922dncsr.htm) are incorporated by reference into this SAI. [Unaudited financial statements for the American Beacon DoubleLine Floating Rate Income Fund, and accompanying notes, appearing in Item 7 of the Fund's Form N-CSR for the fiscal period ended February 28, 2025](https://www.sec.gov/ix?doc=/Archives/edgar/data/809593/000119312525116042/d890035dncsrs.htm) are incorporated by reference into this SAI. Copies of the Acquiring Funds' Annual and Semi-Annual Shareholder Reports, as available, may be obtained without charge, upon request by calling (800) 658-5811 or by visiting www.americanbeaconfunds.com.

------

This SAI is incorporated by reference into the Proxy Statement/Prospectus. In other words, it is legally a part of the Proxy Statement/ Prospectus. Capitalized terms in this SAI have the same definition as in the Proxy Statement/Prospectus, unless otherwise defined. Information Incorporated by Reference The following documents have been filed with the Securities and Exchange Commission ("SEC") and are also incorporated by reference into this SAI:

1. [The Prospectus and  SAI for the Target Funds, dated July 31, 2025 (File Nos. 333-164298 and 811-22378), as supplemented](https://www.sec.gov/ix?doc=/Archives/edgar/data/1480207/000119312525163532/d866184d485bpos.htm) . <br> a. [Supplement to the Prospectus and  SAI of the DoubleLine Floating Rate Fund, dated August 29, 2025](https://www.sec.gov/Archives/edgar/data/1480207/000119312525192866/d21840d497.htm) <br> b. [Supplement to the Prospectus and SAI of the DoubleLine Select Income Fund, dated August 29, 2025](https://www.sec.gov/ix?doc=/Archives/edgar/data/1480207/000119312525192865/d937446d497.htm)

2. [The Annual Shareholder Reports, audited financial statements and other information filed on Form  N-CSR for the Target Funds for the fiscal year ended March 31, 2025](https://www.sec.gov/ix?doc=/Archives/edgar/data/1480207/000113322825006079/dft-efp15564_ncsr.htm) .

3. [The Annual Shareholder Report, audited financial statements and other information filed on Form  N-CSR for the American Beacon DoubleLine Floating Rate Income Fund for the fiscal year ended August 31, 2024.](https://www.sec.gov/ix?doc=/Archives/edgar/data/809593/000119312524249769/d872922dncsr.htm)

4. [The Semi-Annual Shareholder Report, unaudited financial statements and other information filed on Form  N-CSR for the American Beacon DoubleLine Floating Rate Income Fund for the fiscal period ended February 28, 2025.](https://www.sec.gov/ix?doc=/Archives/edgar/data/809593/000119312525116042/d890035dncsrs.htm)

The documents set forth above have previously been provided to shareholders, as applicable. For a free copy of any of the above documents, please call or write at the telephone number or the address above for the Target Trust or Acquiring Trust, as applicable.

**<u>Supplemental Financial Information</u>**

Tables showing the fees and expenses of each Target Fund, the fees and expenses of the American Beacon DoubleLine Floating Rate Income Fund, and the fees and expenses of the corresponding Acquiring Fund on a pro forma basis after giving effect to the proposed Reorganization, are included in the "Comparative Fee and Expense Tables" section of each proposal in the Proxy Statement/Prospectus. The Reorganizations will not result in a material change to a Target Fund's investment portfolio due to investment restrictions. As a result, a schedule of investments of each Target Fund modified to show the effects of such changes are not required and are not included. There are no material differences in the accounting and tax policies of a Target Fund as compared to those of a corresponding Acquiring Fund.

------

**Table of Contents**

---

| | |
|:---|:---|
| [**American Beacon DoubleLine Floating Rate Income Fund SAI**............................................](#chapter_2_2696) | [**5**](#chapter_2_2696) |
| &nbsp;&nbsp;&nbsp; [Organization and History of the Fund...................................................................](#chapter_2-sect1_2_2696) | [6](#chapter_2-sect1_2_2696) |
| &nbsp;&nbsp;&nbsp; [Additional Information About Investment Strategies and Risks..............................................](#chapter_2-sect1_4_2696) | [6](#chapter_2-sect1_4_2696) |
| &nbsp;&nbsp;&nbsp; [Other Investment Strategies and Risks..................................................................](#chapter_2-sect1_5_2696) | [42](#chapter_2-sect1_5_2696) |
| &nbsp;&nbsp;&nbsp; [Investment Restrictions...............................................................................](#chapter_2-sect1_6_2696) | [42](#chapter_2-sect1_6_2696) |
| &nbsp;&nbsp;&nbsp; [Temporary or Defensive Investments....................................................................](#chapter_2-sect1_7_2696) | [44](#chapter_2-sect1_7_2696) |
| &nbsp;&nbsp;&nbsp; [Portfolio Turnover...................................................................................](#chapter_2-sect1_8_2696) | [44](#chapter_2-sect1_8_2696) |
| &nbsp;&nbsp;&nbsp; [Disclosure of Portfolio Holdings........................................................................](#chapter_2-sect1_9_2696) | [44](#chapter_2-sect1_9_2696) |
| &nbsp;&nbsp;&nbsp; [Lending of Portfolio Securities.........................................................................](#chapter_2-sect1_10_2696) | [46](#chapter_2-sect1_10_2696) |
| &nbsp;&nbsp;&nbsp; [Trustees and Officers of the Trust......................................................................](#chapter_2-sect1_11_2696) | [47](#chapter_2-sect1_11_2696) |
| &nbsp;&nbsp;&nbsp; [Code of Ethics......................................................................................](#chapter_2-sect1_12_2696) | [58](#chapter_2-sect1_12_2696) |
| &nbsp;&nbsp;&nbsp; [Proxy Voting Policies.................................................................................](#chapter_2-sect1_13_2696) | [58](#chapter_2-sect1_13_2696) |
| &nbsp;&nbsp;&nbsp; [Control Persons and 5% Shareholders..................................................................](#chapter_2-sect1_14_2696) | [58](#chapter_2-sect1_14_2696) |
| &nbsp;&nbsp;&nbsp; [Investment Advisory Agreement.......................................................................](#chapter_2-sect1_15_2696) | [58](#chapter_2-sect1_15_2696) |
| &nbsp;&nbsp;&nbsp; [Management, Administrative, Securities Lending, and Distribution Services...................................](#chapter_2-sect1_16_2696) | [59](#chapter_2-sect1_16_2696) |
| &nbsp;&nbsp;&nbsp; [Other Service Providers...............................................................................](#chapter_2-sect1_17_2696) | [62](#chapter_2-sect1_17_2696) |
| &nbsp;&nbsp;&nbsp; [Portfolio Managers..................................................................................](#chapter_2-sect1_18_2696) | [62](#chapter_2-sect1_18_2696) |
| &nbsp;&nbsp;&nbsp; [Portfolio Securities Transactions........................................................................](#chapter_2-sect1_19_2696) | [64](#chapter_2-sect1_19_2696) |
| &nbsp;&nbsp;&nbsp; [Additional Purchase and Sale Information for A Class Shares...............................................](#chapter_2-sect1_20_2696) | [65](#chapter_2-sect1_20_2696) |
| &nbsp;&nbsp;&nbsp; [Additional Information Regarding Contingent Deferred Sales Charges.......................................](#chapter_2-sect1_21_2696) | [67](#chapter_2-sect1_21_2696) |
| &nbsp;&nbsp;&nbsp; [Redemptions in Kind.................................................................................](#chapter_2-sect1_22_2696) | [68](#chapter_2-sect1_22_2696) |
| &nbsp;&nbsp;&nbsp; [Tax Information.....................................................................................](#chapter_2-sect1_23_2696) | [68](#chapter_2-sect1_23_2696) |
| &nbsp;&nbsp;&nbsp; [Description of the Trust...............................................................................](#chapter_2-sect1_24_2696) | [73](#chapter_2-sect1_24_2696) |
| &nbsp;&nbsp;&nbsp; [Financial Statements.................................................................................](#chapter_2-sect1_25_2696) | [73](#chapter_2-sect1_25_2696) |
| &nbsp;&nbsp;&nbsp; [Appendix A: Proxy Voting Policy and Procedures for the Trust...............................................](#chapter_2-sect1_27_2696) | [75](#chapter_2-sect1_27_2696) |
| &nbsp;&nbsp;&nbsp; [Appendix B: Proxy Voting Policy for the Sub-Advisor......................................................](#chapter_2-sect1_28_2696) | [77](#chapter_2-sect1_28_2696) |
| &nbsp;&nbsp;&nbsp; [Appendix C: Ratings Definitions........................................................................](#chapter_2-sect1_29_2696) | [86](#chapter_2-sect1_29_2696) |
| &nbsp;&nbsp;&nbsp; [Appendix D: Glossary................................................................................](#chapter_2-sect1_30_2696) | [89](#chapter_2-sect1_30_2696) |
| [**American Beacon DoubleLine Select Income Fund SAI**...................................................](#chapter_3_2696) | [**93**](#chapter_3_2696) |
| &nbsp;&nbsp;&nbsp; [Organization and History of the Fund...................................................................](#chapter_3-sect1_2_2696) | [94](#chapter_3-sect1_2_2696) |
| &nbsp;&nbsp;&nbsp; [Additional Information About Investment Strategies and Risks..............................................](#chapter_3-sect1_4_2696) | [94](#chapter_3-sect1_4_2696) |
| &nbsp;&nbsp;&nbsp; [Other Investment Strategies and Risks..................................................................](#chapter_3-sect1_5_2696) | [131](#chapter_3-sect1_5_2696) |
| &nbsp;&nbsp;&nbsp; [Investment Restrictions...............................................................................](#chapter_3-sect1_6_2696) | [131](#chapter_3-sect1_6_2696) |
| &nbsp;&nbsp;&nbsp; [Temporary or Defensive Investments....................................................................](#chapter_3-sect1_7_2696) | [133](#chapter_3-sect1_7_2696) |
| &nbsp;&nbsp;&nbsp; [Portfolio Turnover...................................................................................](#chapter_3-sect1_8_2696) | [133](#chapter_3-sect1_8_2696) |
| &nbsp;&nbsp;&nbsp; [Disclosure of Portfolio Holdings........................................................................](#chapter_3-sect1_9_2696) | [133](#chapter_3-sect1_9_2696) |
| &nbsp;&nbsp;&nbsp; [Lending of Portfolio Securities.........................................................................](#chapter_3-sect1_10_2696) | [136](#chapter_3-sect1_10_2696) |
| &nbsp;&nbsp;&nbsp; [Trustees and Officers of the Trust......................................................................](#chapter_3-sect1_11_2696) | [136](#chapter_3-sect1_11_2696) |
| &nbsp;&nbsp;&nbsp; [Code of Ethics......................................................................................](#chapter_3-sect1_12_2696) | [148](#chapter_3-sect1_12_2696) |
| &nbsp;&nbsp;&nbsp; [Proxy Voting Policies.................................................................................](#chapter_3-sect1_13_2696) | [148](#chapter_3-sect1_13_2696) |
| &nbsp;&nbsp;&nbsp; [Control Persons and 5% Shareholders..................................................................](#chapter_3-sect1_14_2696) | [148](#chapter_3-sect1_14_2696) |
| &nbsp;&nbsp;&nbsp; [Investment Advisory Agreement.......................................................................](#chapter_3-sect1_15_2696) | [148](#chapter_3-sect1_15_2696) |
| &nbsp;&nbsp;&nbsp; [Management, Administrative, Securities Lending, and Distribution Services...................................](#chapter_3-sect1_16_2696) | [149](#chapter_3-sect1_16_2696) |
| &nbsp;&nbsp;&nbsp; [Other Service Providers...............................................................................](#chapter_3-sect1_17_2696) | [151](#chapter_3-sect1_17_2696) |
| &nbsp;&nbsp;&nbsp; [Portfolio Managers..................................................................................](#chapter_3-sect1_18_2696) | [151](#chapter_3-sect1_18_2696) |
| &nbsp;&nbsp;&nbsp; [Portfolio Securities Transactions........................................................................](#chapter_3-sect1_19_2696) | [153](#chapter_3-sect1_19_2696) |
| &nbsp;&nbsp;&nbsp; [Redemptions in Kind.................................................................................](#chapter_3-sect1_20_2696) | [154](#chapter_3-sect1_20_2696) |
| &nbsp;&nbsp;&nbsp; [Tax Information.....................................................................................](#chapter_3-sect1_21_2696) | [154](#chapter_3-sect1_21_2696) |

---

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp; [Description of the Trust...............................................................................](#chapter_3-sect1_22_2696) | [159](#chapter_3-sect1_22_2696) |
| &nbsp;&nbsp;&nbsp; [Financial Statements.................................................................................](#chapter_3-sect1_23_2696) | [159](#chapter_3-sect1_23_2696) |
| &nbsp;&nbsp;&nbsp; [Appendix A: Proxy Voting Policy and Procedures for the Trust...............................................](#chapter_3-sect1_25_2696) | [160](#chapter_3-sect1_25_2696) |
| &nbsp;&nbsp;&nbsp; [Appendix B: Proxy Voting Policy for the Sub-Advisor......................................................](#chapter_3-sect1_26_2696) | [162](#chapter_3-sect1_26_2696) |
| &nbsp;&nbsp;&nbsp; [Appendix C: Ratings Definitions........................................................................](#chapter_3-sect1_27_2696) | [171](#chapter_3-sect1_27_2696) |
| &nbsp;&nbsp;&nbsp; [Appendix D: Glossary................................................................................](#chapter_3-sect1_28_2696) | [174](#chapter_3-sect1_28_2696) |

---

------

[Back to **Table of Contents**](#TOC_2696)

**American Beacon DoubleLine Floating Rate Income Fund**

**Statement of Additional Information**

------

[Back to **Table of Contents**](#TOC_2696)

**ORGANIZATION AND HISTORY OF THE FUND**

The American Beacon DoubleLine Floating Rate Income Fund (the "Acquiring Fund" or "Fund") is a separate series of American Beacon Funds (the "Trust"), an open-end management investment company organized as a Massachusetts business trust on January 16, 1987. The Fund constitutes a separate investment portfolio with a distinct investment objective and a distinct purpose and strategy. The Fund is "diversified" as that term is defined by the Investment Company Act of 1940, as amended (the "Investment Company Act"). The Fund is comprised of multiple classes of shares designed to meet the needs of different groups of investors. This SAI relates to the A Class, C Class, Y Class, R5 Class, and Investor Class shares of the Fund. Prior to February 28, 2020, the R5 Class shares were known as the Institutional Class shares.

On December 11, 2015, the Fund acquired all the assets and assumed all the liabilities of the Sound Point Floating Rate Income Fund (the "Acquired Sound Point Fund"), a series of Trust for Advised Portfolios. Since the Acquired Sound Point Fund's objective and policies were the same in all material respects as the Fund, and since the Fund at that time engaged the investment advisor that previously provided services to the Acquired Sound Point Fund, Sound Point Capital Management, LP ("Sound Point"), as sub-advisor, the Fund adopted the prior performance and financial history of the Acquired Sound Point Fund.

Effective as of the close of business June 20, 2025, DoubleLine Capital LP ("DoubleLine Capital" or "Sub-Advisor") began serving as Sub-Advisor of the Fund, replacing First Eagle Alternative Credit, LLC ("FEAC"). Prior to the close of business on June 20, 2025, the Fund was known as the American Beacon FEAC Floating Rate Income Fund. FEAC began serving as Sub-Advisor of the Fund on December 31, 2022, replacing Sound Point. Prior to December 31, 2022, the Fund was known as the American Beacon Sound Point Floating Rate Income Fund.

The shareholders of the DoubleLine Floating Rate Fund ("Target Floating Rate Fund") are being asked to approve an Agreement and Plan of Reorganization and Termination ("Reorganization Agreement") between the Target Trust, on behalf of the Target Floating Rate Fund, and the Acquiring Trust, on behalf of the Fund, pursuant to which the Target Fund will be reorganized with and into the Fund. A copy of the Reorganization Agreement is attached as Exhibit A to the Proxy Statement/Prospectus. The Reorganization Agreement contemplates certain transactions, including: (a) the transfer of all assets of the Target Floating Rate Fund to the Fund in exchange solely for Fund shares and the Fund's assumption of all liabilities of the Target Floating Rate Fund; (b) the distribution of those Fund shares pro rata to shareholders of the Target Floating Rate Fund in exchange for their shares therein and in complete liquidation thereof; and (c) the complete termination of the Target Floating Rate Fund. If the Reorganization Agreement is approved, the Fund will acquire all of the assets and assume all of the liabilities of the Target Floating Rate Fund. Since the investment objective of the Fund is essentially identical to that of the Target Floating Rate Fund, the Target Floating Rate Fund and the Fund have substantially similar investment strategies, and the Fund engages the investment sub-advisor (as defined in "Investment Advisory Agreement" below) currently providing services to the Target Floating Rate Fund as the Fund's investment sub-advisor, the Fund will adopt the prior performance and financial history of the Target Floating Rate Fund and the Target Floating Rate Fund will be the accounting and performance survivor.

**ADDITIONAL INFORMATION ABOUT INVESTMENT STRATEGIES AND RISKS**

The Fund's investment objective, principal investment strategies, and principal risks are described in the Prospectus. 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. Investors should carefully consider their own investment goals and risk tolerance before investing in the Fund.

**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, credit-card and other categories of receivables, equipment leases, 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

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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.

The value of asset-backed securities, like that of traditional fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However, asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The price paid by the Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and the average life of the securities are based on a number of factors, including the anticipated rate of prepayment of the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities. Moreover, when the Fund reinvests the proceeds of a prepayment in these circumstances, it will likely receive a rate of interest that is lower than the rate on the security that was prepaid. To the extent that the Fund purchases asset-backed securities at a premium, prepayments may result in a loss to the extent of the premium paid. If the Fund buys such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying assets may occur at a slower than expected rate, creating extension risk. This particular risk may effectively change a security that was considered short- or intermediate-term at the time of purchase into a longer-term security. Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates than does the value of shorter-term securities, extension risk could increase the volatility of the Fund. When interest rates decline, the value of an asset-backed security with prepayment features may not increase as much as that of other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate or retard prepayments and thus affect maturities.

• **Equipment Trust Certificates (ETCs) and Enhanced Equipment Trust Certificates (EETCs) Risk.** ETCs and EETCs are
 types of asset-backed securities that generally represent undivided fractional interests in a trust whose assets consist of
 a pool of equipment retail installment contracts or leased equipment. EETCs are similar to ETCs, except that the securities
 have been divided into two or more classes, each with different payment priorities and asset claims. ETCs and EETCs
 are typically issued by specially-created trusts established by airlines, railroads, or other transportation firms. The assets
 of ETCs and EETCs are used to purchase equipment, such as airplanes, railroad cars, or other equipment, which may
 in turn serve as collateral for the related issue of the ETCs or EETCs, and the title to such equipment is held in trust for
 the holders of the issue. The equipment generally is leased from the specially-created trust by the airline, railroad or other
 firm, which makes rental or lease payments to the specially-created trust to provide cash flow for payments to ETC
 and EETC holders. Holders of ETCs and EETCs must look to the collateral securing the certificates, typically together
 with a guarantee provided by the lessee firm or its parent company for the payment of lease obligations, in the
 case of default in the payment of principal and interest on the ETCs or EETCs. ETCs and EETCs are subject to the risk
 that the lessee or payee defaults on its payments, and risks related to potential declines in the value of the equipment
 that serves as collateral for the issue. ETCs and EETCs are generally regarded as obligations of the company that
 is leasing the equipment and may be shown as liabilities in its balance sheet as a capitalized lease in accordance with
 generally accepted accounting principles. The lessee company, however, does not own the equipment until all the certificates
 are redeemed and paid. In the event the company defaults under its lease, the trustee may terminate the lease.
 If another lessee is not available, then payments on the certificates would cease until another lessee is available.

**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.

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**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.

• **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.

• **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.

• **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.

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• **Government Money Market Funds.** The Fund may
 invest cash balances in money market funds that are registered as investment
 companies under the Investment Company Act, including money market funds that are advised by the Manager. Money
 market funds invest in highly-liquid, short-term instruments, which include cash and cash equivalents, and debt securities
 with high credit ratings and short-term maturities, such as U.S. Treasuries. A "government money market fund" is required
 to invest at least 99.5% of its total assets in cash, U.S. government securities, and/or repurchase agreements that are fully
 collateralized by government securities or cash. Government securities include any security issued or guaranteed as to principal
 or interest by the U.S. government and its agencies or instrumentalities. By investing in a money market fund, the Fund becomes a shareholder
 of that money market fund. As a result, Fund shareholders indirectly bear their proportionate share
 of the expenses of the money market funds in which the
 Fund invests in addition to any fees and expenses Fund shareholders
 directly bear in connection with the
 Fund's own operations. These expenses may include, for example, advisory and
 administrative fees, including advisory fees charged by the Manager to any applicable money market funds advised by the Manager.
 These other fees and expenses are reflected in the Fees and Expenses Table for the
 Fund in its Prospectus, if applicable.
 Shareholders also would be exposed to the risks associated with money market funds and the portfolio investments
 of such money market funds, including that a money market fund's yield will be lower than the return that the Fund would have derived
 from other investments that would provide liquidity. 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 can cause the price of a money market security to decrease and may reduce the money market fund's yield.
 In addition, a money market fund is subject to the risk that the value of an investment may be eroded over time by inflation.
 Factors that could adversely affect the value of a money market fund's shares include, among other things, a sharp rise
 in interest rates, an illiquid market for the securities held by the money market fund, a high volume of redemption activity in
 a money market fund's shares, and a credit event or credit rating downgrade affecting one or more of the issuers of securities
 held by the money market fund. There can be no assurance that a money market fund will maintain a $1.00 per share
 net asset value ("NAV") at all times.

• **Repurchase Agreements**  *.*** Repurchase agreements are agreements pursuant to which the
 Fund purchases securities from
 a bank that is a member of the Federal Reserve System (or a foreign bank or U.S. branch or agency of a foreign bank), or from
 a securities dealer, that agrees to repurchase the securities from the
 Fund at a higher price on a designated future date. Repurchase
 agreements generally are for a short period of time, usually less than a week. Costs, delays, or losses could result if the
 selling party to a repurchase agreement becomes bankrupt or otherwise defaults.

• **Short-term** **Corporate Debt Securities.** Short-term corporate debt securities are securities and bonds issued by corporations
 with shorter terms to maturity. Corporate securities generally bear a higher risk than U.S. government bonds.

• **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 and CLOs may be considered types of CDOs, and CBOs, CLOs and other CDOs are types of asset-backed securities. CBOs, CLOs and other CDOs ordinarily are issued by a trust or other special purpose entity ("SPE"), which is a company founded solely for the purpose of securitizing payment claims arising out of this diversified asset pool. On this basis, marketable securities are issued by the SPE which, due to the diversification of the underlying risk, are intended to represent a lower level of risk than the original assets. The redemption of the securities issued by the SPE typically takes place at maturity out of the cash flow generated by the collected claims. A CBO 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. 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.<br>A CLO 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. CBOs, CDOs and CLOs are subject to the risks described elsewhere in this SAI in Senior Loans, Loan Interests, Participations and Assignments, and Illiquid and Restricted Securities. CBOs, CLOs and other CDOs may charge management fees and administrative expenses.

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For CBOs, CLOs and other CDOs, the cash flows from the trust are split into two or more portions, called tranches, that offer various maturity, risk and yield characteristics. Losses caused by defaults on underlying assets are borne first by the holders of subordinate tranches. Tranches are typically categorized as senior, mezzanine and subordinated/ equity, according to their degree of risk. Senior tranches are paid from the cash flows from the underlying assets before the junior tranches. If there are defaults or the CBO's, CLO's or other CDO's collateral otherwise underperforms, scheduled payments to senior tranches take precedence over those of mezzanine tranches, and scheduled payments to mezzanine tranches take precedence over those of subordinated/equity tranches. 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. 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. 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. 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. 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.<br>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. The Fund may have the right to receive payments only from the CBO, CLO or other CDO, and generally does not have direct rights against the issuer or the entity that sold the assets to be securitized. The underlying loans purchased by CLOs generally are performing at the time of purchase but may become non-performing, distressed or defaulted. 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 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 Prospectus; (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 tranches thereof; (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; (vi) the lack of a readily available secondary market for CDOs; (vii) risk of forced "fire sale" liquidation due to technical defaults such as coverage test failures; and (viii) the CBO, CLO or CDO manager may perform poorly. If the issuer of a CBO, CLO or other CDO uses shorter term financing to purchase longer term securities, the issuer may be forced to sell its securities at below market prices if it experiences difficulty in obtaining short-term financing, which may adversely affect the value of the CBO, CLO or other CDO owned by the Fund. If the issuer of a CLO uses shorter term financing to purchase longer term securities, the issuer may be forced to sell its securities at below market prices if it experiences difficulty in obtaining short term financing, which may adversely affect the value of the CLO owned by the Fund. 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.

**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"). 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.

**"Covenant-Lite" Obligations Risk** — Certain investments, such as loans in which the Fund may invest directly or have exposure to through its investments in structured securities, may be "covenant-lite." Covenant-lite obligations contain fewer maintenance covenants than other obligations, or no maintenance covenants at all, and may not include terms which allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached, which would allow the lender to restructure the obligation or take other action intended to help mitigate losses. This may expose the Fund to greater credit risk associated with

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the borrower and reduce the Fund's ability to restructure a problematic obligation and mitigate potential loss. As a result, the Fund's exposure to losses on such investments may be increased, especially during a downturn in the credit cycle, and the Fund may experience relatively greater difficulty or delays in enforcing its rights on its holdings of covenant-lite obligations than its holdings of obligations or securities with financial maintenance covenants.

**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.

**Creditor Liability and Participation on Creditors' Committees** — Generally, when the Fund holds bonds, loans or other similar debt securities of an issuer, the Fund becomes a creditor of the issuer. If the Fund is a creditor of an issuer, it may be subject to challenges related to these investments, either in connection with the bankruptcy of the issuer or in connection with another action brought by other creditors of the issuer, shareholders of the issuer or the issuer itself. Although it is under no obligation to do so, the sub-advisor to the Fund may from time to time have an opportunity to consider, negotiate or otherwise participate in the restructuring of the Fund's portfolio investment or the issuer of such investment. Accordingly, the Fund may from time to time participate on committees formed by creditors to negotiate with the management of financially troubled issuers of investments held by the Fund. Such participation may subject the Fund to expenses such as legal fees and may make the sub-advisor an "insider" of the issuer for purposes of the federal securities laws, and therefore may restrict such sub-advisor's ability to trade in or acquire additional positions in a particular issuer when it might otherwise desire to do so. Participation on such committees also may expose the Fund to potential liabilities under the federal bankruptcy laws or other laws governing the rights of creditors and debtors. Similarly, the sub-advisor may actively participate in bankruptcy court and related proceedings on behalf of the Fund in order to protect the Fund's interests in connection with a restructuring transaction, and the sub-advisor may cause the Fund to enter into an agreement reasonably indemnifying third parties or advancing from the Fund's assets any legal fees or other costs to third parties, including parties involved in or assisting the Fund with a restructuring transaction, such as trustees, servicers and other third parties. Further, the sub-advisor may have the authority to represent the Trust, or any Fund(s) thereof, on creditors' committees (or similar committees) or otherwise in connection with the restructuring of an issuer's debt and generally with respect to challenges related to the investments held by the Fund relating to the bankruptcy of an issuer or in connection with another action brought by other creditors of the issuer, shareholders of the issuer or the issuer itself. If the sub-advisor also manages other funds or accounts that are deemed affiliated persons of the sub-advisor and that hold the same debt investment as the Fund, the Investment Company Act's prohibition against certain joint transactions may prevent the sub-advisor from negotiating with the issuer on behalf of the Fund when it might otherwise desire to do so, unless the sub-advisor obtained certain exemptive relief applicable to the Fund or complied with existing regulatory guidance. In such instances, this may limit the sub-advisor's ability to protect the Fund's interests in a restructuring transaction.

**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, its service providers, third-party fund distribution platforms, and the issuers of the Fund's investments may be prone to operational and information security risks resulting from cybersecurity incidents, including cyber-attacks. In general, cybersecurity 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 (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, the Manager, the sub-advisor, the Custodian (as defined below), 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

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release of private shareholder information or confidential business information, result in violations of applicable privacy and other laws, 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 (also known as "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 or corrective measures, and such costs may be ongoing because threats of cyber-attacks are constantly evolving as cyber-attackers become more sophisticated and their techniques become more complex. Similar types of cybersecurity risks are also present for issuers of the Fund's investments, which could result in material adverse consequences for such issuers and may cause the Fund 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. Furthermore, as a result of cyber-attacks, disruptions or failures, an exchange or market may close or issue trading halts on specific securities or the entire market, which may result in the Fund being, among other things, unable to buy or sell certain securities or unable to accurately price its investments. 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 the Fund's 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. There are inherent limitations in risk management systems that seek to reduce the risks associated with cybersecurity incidents, including the possibility that risks may not have been adequately identified or prepared for, or that different or unknown threats may emerge in the future. Furthermore, the Fund does not control the cybersecurity systems and plans of the issuers of the Fund's investments, third party service providers, trading counterparties or any other service providers whose operations may affect the Fund or its shareholders. The use of cloud-based service providers could heighten or change these risks. In addition, remote and hybrid work arrangements by the Fund, the Manager or their service providers could increase all of the above risks, create additional data and information accessibility concerns, and make the Fund, the Manager or their service providers susceptible to operational disruptions, any of which could adversely impact their operations.

**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.

**Debtor-In-Possession Loan Risks** — Obligations issued in connection with restructuring proceedings under the U.S. Bankruptcy Code or similar proceedings in other jurisdictions ("DIP financings") are subject to additional risks. DIP financings are arranged when an entity seeks the protections of the bankruptcy court under Chapter 11 of the U.S. Bankruptcy Code and any DIP financing must be approved by the bankruptcy court. These financings are typically senior obligations of a borrower issued in connection with a restructuring that are designed to allow the entity to continue its business operations while reorganizing under Chapter 11. In DIP financings, the borrower potentially assumes large amounts of debt in order to have the financial resources to attempt to achieve its restructuring objectives. DIP financings are often fully secured by a lien on the debtor's otherwise unencumbered assets but may also have senior or equal priority to other senior lenders or be secured by a junior lien on the debtor's encumbered assets (so long as requirements as to collateralization of the loan and other legal requirements are satisfied). DIP financings are often required to close in a rapid manner in order to satisfy existing creditors and to enable the issuer to emerge from bankruptcy or to avoid a bankruptcy proceeding. Additionally, a DIP financing may be "rolled" into exit financing, which enables the issuer to emerge from bankruptcy. In any DIP financing, there is a risk that the borrower will not emerge successfully from Chapter 11 bankruptcy proceedings and be forced to liquidate its assets under Chapter 7 of the U.S. Bankruptcy Code. In the event of liquidation, the Fund's only recourse will be against the property securing the DIP financing and any remaining unencumbered assets.

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**Defaulted Securities**— The Fund may invest in securities in default. Defaulted securities risk refers to the significant risk of the uncertainty of repayment of defaulted securities (e.g., a security on which a principal or interest payment is not made when due) and obligations of distressed issuers (including insolvent issuers or issuers in payment or covenant default, in workout or restructuring or in bankruptcy or similar proceedings). Because the issuer of such securities is in default and is likely to be in distressed financial condition, repayment of defaulted securities and obligations of distressed issuers is subject to significant uncertainties. Insolvency laws and practices in foreign markets, and especially emerging market countries, are different than those in the U.S. and the effect of these laws and practices cannot be predicted with certainty. Investments in defaulted securities and obligations of distressed issuers are considered speculative and entail high risk.

**Delayed Funding Loans and Revolving Credit Facilities** — The Fund may enter into, or acquire participations in, delayed funding loans and revolving credit facilities. Delayed funding loans and revolving credit facilities are borrowing arrangements in which the lender agrees to make loans up to a maximum amount upon demand by the borrower during a specified term. A revolving credit facility differs from a delayed funding loan in that as the borrower repays the loan, an amount equal to the repayment may be borrowed again during the term of the revolving credit facility. Delayed funding loans and revolving credit facilities usually provide for floating or variable rates of interest. These commitments may have the effect of requiring the Fund to increase its investment in a company at a time when it might not otherwise decide to do so (including at a time when the company's financial condition makes it unlikely that such amounts will be repaid). To the extent that the Fund is committed to advance additional funds, it will at all times segregate or "earmark" assets determined to be liquid in an amount sufficient to meet such commitments.

The Fund may invest in delayed funding loans and revolving credit facilities with credit quality comparable to that of issuers of its securities investments. Delayed funding loans and revolving credit facilities may be subject to restrictions on transfer, and only limited opportunities may exist to resell such instruments. 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 Fund currently intends to treat delayed funding loans and revolving credit facilities for which there is no readily available market as illiquid for purposes of the Fund's limitation on illiquid investments. Delayed funding loans and revolving credit facilities are considered to be debt obligations for purposes of the Fund's investment restriction relating to the lending of funds or assets.

**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 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 risks.

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, 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. 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,

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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."

The Manager, on behalf of the Fund, has filed a notice claiming the CFTC Regulation 4.5 exclusion from CPO registration with respect to the Fund. The Manager is also exempt from registration as a commodity trading advisor under CFTC Regulation 4.14(a)(8) with respect to the Fund.

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:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• **Forward Contracts**  *.*** The Fund may
 enter into forward contracts. Forward 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 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 asset against receipt of the specified price. Generally, forward contracts are traded through
 financial institutions acting as market-makers, on certain securities exchanges, or over-the-counter, and the protections
 afforded to investors may vary depending on the trading environment. This is distinguishable from futures contracts,
 which are traded on U.S. and foreign commodities exchanges. <br> Forward
 contracts are often negotiated on an individual basis and are not standardized. The market for forward contracts is substantially
 unregulated, as there is no limit on daily price movements and speculative position limits are not applicable. The principals
 who deal in certain forward contract markets are not required to continue to make markets in the underlying reference
 assets in which they trade and these markets can experience periods of illiquidity, sometimes of significant duration. There
 have been periods during which certain participants in forward contract markets have refused to quote prices for certain underlying
 references or have quoted prices with an unusually wide spread between the price at which they were prepared to buy
 and that at which they were prepared to sell. The liquidity of the markets for forward contracts depends on participants entering
 into offsetting transactions rather than making or taking delivery. To the extent participants make or take delivery, liquidity
 in the market for forwards could be reduced. At or prior to maturity of a forward contract, the
 Fund may enter into an
 offsetting contract and may incur a loss to the extent there has been adverse movement in forward contract prices.   A relatively
 small price movement in a forward contract may result in substantial losses to the
 Fund, exceeding the amount of the margin
 paid. Forward contracts can increase the
 Fund's risk exposure to underlying reference assets and their attendant risks. <br> 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, the
 Fund may 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.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• **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. 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 the
 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

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worse than if it had not entered into any such contract. 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. The Fund may invest in the following types of futures contracts:

□ *Index Futures Contracts.* An index futures
 contract, such as an equity index futures contract or a bond index futures contract,
 is based on the value of an underlying index. Futures contracts on indices expose the
 Fund to volatility in an underlying
 index.

□ *Interest Rate Futures Contracts.* An interest rate futures contract is a contract for the future delivery of an interest-bearing
 debt security. Interest rate futures contracts expose the
 Fund to price fluctuations resulting from changes in interest
 rates. The Fund could
 suffer a loss if interest rates rise after the
 Fund has purchased an interest rate futures contract or fall
 after the Fund has
 sold an interest rate futures contract.

□ *Treasury Futures Contracts.* A Treasury futures contract is a contract for the future delivery of a U.S. Treasury security.
 Treasury futures contracts expose the
 Fund to price fluctuations resulting from changes in interest rates and to potential
 losses if interest rates do not move as expected.

• **Options.** The Fund
 may purchase and sell put options and call options, each a type of derivative instrument, on securities
 and foreign currencies. A call option is "covered" if the
 Fund simultaneously holds an equivalent position in the
 security underlying the option. Where the underlying security is a convertible bond, the call option is considered to be
 uncovered until the option is exercised.

An option is a contract that gives the purchaser (holder) of the option, in return for a premium, the right to buy from (call) or sell to (put) the seller (writer) of the option the security or currency underlying the option at a specified exercise price at any time during the term of the option (normally not exceeding nine months). The writer of an option has the obligation upon exercise of the option to deliver or pay the value of the underlying security or currency upon payment of the exercise price or to pay the exercise price upon delivery of the underlying security or currency.

When the Fund writes a call option, it is obligated to sell a security to a purchaser at a specified price at any time until a certain date if the purchaser decides to exercise the option. The Fund will receive a premium for writing a call option. So long as the obligation of the call option continues, the Fund may be assigned an exercise notice, requiring it to deliver the underlying security against payment of the exercise price. The Fund may be obligated to deliver securities underlying an option at less than the market price. By writing a covered call option, the Fund forgoes, in exchange for the premium less the commission ("net premium"), the opportunity to profit during the option period from an increase in the market value of the underlying security or currency above the exercise price. If a call option that the Fund has written expires unexercised, the Fund will realize a gain in the amount of the premium; however, that gain may be offset by a decline in the market value of the underlying security during the option period. If a call option is exercised, the Fund will realize a gain or loss from the sale of the underlying security.

When the Fund writes a put option, it is obligated to acquire a security at a certain price at any time until a certain date if the purchaser decides to exercise the option. The Fund will receive a premium for writing a put option. By writing a put option, the Fund, in exchange for the net premium received, accepts the risk of a decline in the market value of the underlying security or currency below the exercise price. The Fund may terminate its obligation as the writer of a call or put option by purchasing a corresponding option with the same exercise price and expiration date as the option previously written. If a put option that the Fund has written expires unexercised, the Fund will realize a gain in the amount of the premium. When the Fund writes an option, an amount equal to the net premium received by the Fund is included in the liability section of the Fund's Statement of Assets and Liabilities as a deferred credit. The amount of the deferred credit will be subsequently marked to market to reflect the current market value of the option written. The current market value of a traded option is the last sale price or, in the absence of a sale, the mean between the closing bid and asked price. If an option expires unexercised on its stipulated expiration date or if the Fund enters into a closing purchase transaction, the Fund will realize a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was sold), and the deferred credit related to such option will be eliminated.

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A closing purchase transaction for exchange-traded options may be made only on a national securities exchange. It is impossible to predict the volume of trading that may exist in such options, and there can be no assurance that viable exchange markets will develop or continue. There is no assurance that a liquid secondary market on an exchange will exist for a particular option, or at any particular time, and for some options, such as OTC options, no secondary market on an exchange may exist. The hours of trading for options may not conform to the hours during which the underlying securities are traded. To the extent that the option markets close before the markets for the underlying securities, significant price and rate movements can take place in the underlying securities markets that cannot be reflected in the option markets. The Fund may use NDOs, which are foreign exchange products designed to assist in reducing the foreign exchange risk, in particular situations when physical delivery of the underlying currencies is not required or not possible.

The Fund may write (sell) and purchase covered or uncovered call and covered put options on foreign currencies for hedging or non-hedging purposes. The Fund may use options on foreign currencies to protect against decreases in the U.S. dollar value of securities held or increases in the U.S. dollar cost of securities to be acquired by the Fund or to protect the U.S. dollar equivalent of dividends, interest, or other payments on those securities. In addition, the Fund may write and purchase covered or uncovered call and covered put options on foreign currencies for non-hedging purposes (e.g., when the Manager or sub-advisor anticipates that a foreign currency will 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 Fund may write covered or uncovered call and covered put options on any currency in order to realize greater income than would be realized on portfolio securities alone. Currency options have characteristics and risks similar to those of securities options, as discussed herein. Certain options on foreign currencies are traded on the OTC market and involve liquidity and credit risks that may not be present in the case of exchange-traded currency options.

• **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 the
 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 . The Fund may invest
 in the following types of swaps:

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□  ***Credit Default Swaps.*** In a credit default swap, one party (the seller) agrees to make a payment to the other party (the
 buyer) in the event that a "credit event," such as a default or issuer insolvency, occurs with respect to one or more
 underlying or "reference" bonds or other debt securities. Credit default swaps may be on a single security, a basket
 of securities or on a securities index. The
 Fund may be either a seller or a buyer of credit protection under a credit
 default swap. The purchaser pays a fee during the life of the swap. If there is a credit event with respect to a referenced
 debt security, the seller under a credit default swap may be required to pay the buyer the par amount (or a
 specified percentage of the par amount) of that security in exchange for receiving the referenced security (or a specified
 alternative security) from the buyer.. Alternatively, the credit default swap may be cash settled, meaning that
 the seller will pay the buyer the difference between the par value and the market value of the defaulted bonds. If
 the swap is on a basket of securities (such as the  CDX indices), the notional amount of the swap is reduced by the par
 amount of the defaulted bond, and the fixed payments are then made on the reduced notional amount. <br> Taking
 a long position in (i.e., acting as the seller under) a credit default swap increases the exposure to the specific issuers,
 and the seller could experience a loss if a credit event occurs and the credit of the reference entity or underlying
 asset has deteriorated. As a seller, the
 Fund would effectively add leverage because, in addition to its total
 net assets, the Fund
 would be subject to investment exposure on the notional amount of the swap. Taking a short
 position in (i.e., acting as the buyer under) a credit default swap results in opposite exposures for the
 Fund. The risks of
 being the buyer of credit default swaps include the cost of paying for credit protection if there are no credit
 events, pricing transparency when assessing the cost of a credit default swap, counterparty risk, and the need to
 fund any delivery obligation, particularly in the event of adverse pricing when purchasing bonds to satisfy a delivery
 obligation. Credit default swap buyers are also subject to counterparty risk since the ability of the seller to make
 required payments is dependent on its creditworthiness.

□  ***Interest Rate and Inflation Swaps.*** In an interest rate swap, the parties exchange payments based on fixed or floating
 interest rates multiplied by a hypothetical or "notional" amount. For example, one party might agree to pay the
 other a specified fixed rate on the notional amount in exchange for recovering a floating rate on that notional amount.
 Interest rate swap agreements entail both interest rate risk and counterparty risk. The purchase of an interest
 rate cap entitles the purchaser, to the extent that a specified index exceeds a predetermined interest rate, to receive
 payments of interest on a notional principal amount from the party selling such interest rate cap. The purchase
 of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a predetermined
 interest rate, to receive payments of interest on a notional principal amount from the party selling such
 interest rate floor. There is a risk that based on movements of interest rates, the payments made under a swap agreement
 will be greater than the payments received. The
 Fund may also invest in inflation swaps, where an inflation
 rate index is used in place of an interest rate index.

□  ***Total Return Swaps.*** In a total return swap transaction, one party agrees to pay the other party an amount equal to
 the total return on a defined underlying asset such as a security or basket of securities or on a referenced index during
 a specified period of time. In return, the other party would make periodic payments based on a fixed or variable
 interest rate or on the total return from a different underlying asset or index. Total return swap agreements may
 be used to gain exposure to price changes in an overall market or an asset. Total return swaps may effectively add
 leverage to the Fund's
 portfolio because, in addition to its net assets, the
 Fund would be subject to investment exposure
 on the notional amount of the swap, which may exceed the
 Fund's net assets. If the
 Fund is the total return
 receiver in a total return swap, then the credit risk for an underlying asset is transferred to the
 Fund in exchange
 for its receipt of the return (appreciation) on that asset or index. If the
 Fund is the total return payer, it is hedging
 the downside risk of an underlying asset or index but it is obligated to pay the amount of any appreciation on
 that asset or index. Total return swaps could result in losses if the underlying asset or index does not perform as anticipated.
 Written total return swaps can have the potential for unlimited losses.

• **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 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.

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**Distressed Investment Risk** — The Fund may invest in distressed investments, which are issued by companies that are, or might be, involved in reorganizations or financial restructurings, either out of court or in bankruptcy. The Fund may also invest in debt securities of issuers that are in default or in bankruptcy. Investments in financially stressed or distressed issuers are speculative and involve substantial risks. These investments may present a substantial risk of default or may be in default at the time of investment. In addition, these securities may fluctuate more in price, and are typically less liquid than other higher-rated debt securities. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in the payment of principal or interest on its portfolio holdings. The Fund is also subject to significant uncertainty as to when, in what manner, and for what value obligations evidenced by securities of financially stressed or distressed issuers will eventually be satisfied (e.g., through a liquidation of the issuer's assets, an exchange offer or plan of reorganization, or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is made or plan of reorganization is adopted with respect to stressed or distressed debt held by the Fund, there can be no assurance that the securities or other assets received by the Fund in connection with such exchange offer or plan of reorganization will not have a lower value or income potential than may have been anticipated when the investment was made or no value. Defaulted obligations might be repaid only after lengthy workout or bankruptcy proceedings during which the issuer might not make any interest or other payments. In any reorganization or liquidation proceeding relating to a defaulted obligation, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Moreover, any securities received by the Fund upon completion of a workout or bankruptcy proceeding may be illiquid, speculative, or restricted as to resale. Similarly, if the Fund participates in negotiations with respect to any exchange offer or plan of reorganization with respect to the securities of a stressed or distressed issuer, the Fund may be restricted from disposing of such securities. To the extent that the Fund becomes involved in such proceedings, the Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. Also among the risks inherent in investments in a troubled issuer is that it frequently may be difficult to obtain information as to the true financial condition of the issuer. Judgments about the credit quality of a financially stressed or distressed issuer and the relative value of its securities may prove to be wrong, and there is no assurance that the evaluation of the value of the assets collateralizing the Fund's investments or the prospects for a successful reorganization or similar action in respect of any company will be correct. See "High-Yield Bonds" disclosure below for the risks associated with low-quality, high-risk corporate bonds, a type of fixed-income security.

**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.

**Event-Driven Investing** — The Fund may seek to profit from the occurrence of specific corporate events, such as mergers, acquisitions, asset sales, restructurings, refinancings, recapitalizations, reorganizations, or other special situations. Event-driven investing requires the sub-advisor to make predictions about (i) the likelihood that an event will occur and (ii) the impact such event will have on the value of a company's securities. If the event is delayed, fails to occur or does not have the effect foreseen, losses can result. For example, the adoption of new business strategies, a meaningful change in management or the sale of a division or other significant assets by a company may not be valued as highly by the market as the sub-advisor had anticipated, resulting in losses. In addition, a company may announce a plan of restructuring which promises to enhance value and fail to implement it, resulting in losses to investors. Event-driven strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.

**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. To the extent that the Fund invests in derivatives tied to fixed-income securities, the Fund may be more substantially exposed to these risks than a portfolio that does not invest in such derivatives. 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

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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 the 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.

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.

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.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• **High-Yield Bonds.** High-yield,
 non-investment grade bonds (also known as "junk bonds") are low-quality, high-risk corporate
 bonds that generally offer a high level of current income. These bonds are considered speculative with respect
 to the issuer's ability to pay interest and repay principal by rating organizations. For example, Moody's, S&P Global,
 and Fitch, Inc. currently rate them below Baa3, BBB- and BBB-, respectively. Please see "**Appendix** **C**:
 Ratings Definitions"
 below for an explanation of the ratings applied to high-yield bonds. High-yield bonds are often issued as a result
 of corporate restructurings, such as leveraged buyouts, mergers, acquisitions, or other similar events. They may also
 be issued by smaller, less creditworthy companies or by highly leveraged firms, which are generally less able to make
 scheduled payments of interest and principal than more financially stable firms. Because of their lower credit quality,
 high-yield bonds must pay higher interest to compensate investors for the substantial credit risk they assume. Lower-rated
 securities are subject to certain risks that may not be present with investments in higher-grade securities. Investors
 should consider carefully their ability to assume the risks associated with lower-rated securities before investing
 in the Fund. The
 lower rating of certain high-yield corporate income securities reflects a greater possibility that the
 financial condition of the issuer or adverse changes in general economic conditions may impair the ability of the issuer
 to pay income and principal. Changes by rating agencies in their ratings of a fixed-income security also may affect
 the value of these investments; however, allocating investments in the
 Fund among securities of different issuers should
 reduce the risks of owning any such securities separately. The prices of these high-yield securities tend to be less sensitive
 to interest rate changes than higher-rated investments, but more sensitive to adverse economic changes or individual
 corporate developments. During economic downturns, periods of rising interest rates, or when inflation or deflation
 occurs, highly leveraged issuers may experience financial stress that adversely affects their ability to service principal
 and interest payment obligations, to meet projected business goals or to obtain additional financing, and the markets
 for their securities may be more volatile. They may also not have more traditional methods of financing available
 to them and may be unable to repay debt at maturity by refinancing. In addition, lower-rated securities may experience
 substantial price declines when there is an expectation that issuers of such securities might experience financial
 difficulties. As a result, the yields on lower-rated securities can rise dramatically. However, the higher yields of high-yield
 securities may not reflect the value of the income stream that holders of such securities may expect, but rather
 the risk that such securities may lose a substantial portion of their value as a result of their issuer's financial restructuring
 or default. If an issuer defaults, the
 Fund may incur additional expenses to seek recovery. Additionally, accruals
 of interest income for the
 Fund may have to be adjusted in the event of default. In the event of an issuer's default, the Fund may write
 off prior income accruals for that issuer, resulting in a reduction in the
 Fund's current dividend
 payment. In the event of an in court or out of court restructuring of high-yield bond in which the
 Fund invests, the
 Fund may acquire (and subsequently sell) equity securities or exercise warrants that it receives. In addition, the market
 for high-yield securities generally is less robust and active than that for higher-rated securities, which may limit the
 Fund's ability to sell such securities at fair value in response to changes in the economy or financial markets and could
 make the valuation of these portfolio securities more difficult.

**Foreign Debt Securities** — The Fund may invest in foreign fixed and floating rate income securities, all or a portion of which may be non-U.S. dollar denominated and which include: (a) debt obligations issued or guaranteed by foreign national, provincial, state, municipal or other governments with taxing authority or by their agencies or instrumentalities, including Brady Bonds; (b) debt obligations of supranational entities; (c) debt obligations of the U.S. Government issued in non-dollar securities; (d) debt obligations and other fixed-income securities of foreign corporate issuers (both dollar and non-dollar denominated); and (e) debt obligations of U.S. corporate issuers (both Eurodollar and non-dollar denominated). Foreign debt securities may be structured as fixed-, variable- or floating-rate obligations, or as zero-coupon, pay-in-kind and step-coupon securities. There is no minimum rating criteria for the Fund's investments in such securities. The cost of servicing foreign debt will generally be adversely affected by rising international interest rates, because many external debt obligations bear interest at rates which are adjusted based upon international interest rates. The Fund's foreign debt securities may be held outside of the United States in the primary market for the securities in the custody of certain eligible foreign banks and trust companies, as permitted under the Investment Company Act. Investing in the securities of foreign issuers involves special considerations that are not typically associated with investing in the securities of U.S. issuers and the risks similar to those of foreign securities, such as the fact that foreign markets can be extremely volatile, foreign debt securities may be less liquid than securities of U.S. issuers, and transaction fees, custodial costs, currency conversion costs and other fees are generally higher for foreign debt securities.

**Foreign Investing** — The Fund may invest in U.S. dollar-denominated and non-U.S. dollar-denominated equity, debt and derivative instruments of foreign issuers and foreign branches of U.S. banks. 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 investments 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

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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; 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. Non-U.S. 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. Individual foreign companies also may differ favorably or unfavorably from U.S. companies in the same industry.

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. Trading practices, including those involving the release of assets in advance of payment, may involve increased risks in the event of a failed trade or the insolvency of a broker-dealer, and may involve substantial delays. 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 investments 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

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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, as are transaction costs, although the sub-advisor endeavors to achieve the most favorable net results on portfolio transactions.

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. 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. The Fund's market timing and frequent trading policies and procedures also are intended to help deter arbitrage activities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• **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 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

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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

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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 the 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 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.

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• **European Securities**. The
 Fund's performance may be affected by political, social and economic conditions in Europe, such
 as the growth of the economic output (the gross national product of the countries in the region), 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, interest rates in European countries, monetary
 exchange rates between European countries, and conflict between European countries. <br> The
 Economic and Monetary Union ("EMU") of the European Union ("EU") is comprised of EU members that have adopted
 the euro currency. By adopting the euro as its currency, a member state relinquishes control of its own monetary
 policies and is subject to fiscal and monetary controls. 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. Although
 the EMU has adopted a common currency and central bank, there is no fiscal union; therefore, money does not
 automatically flow from countries with surpluses to those with deficits. These restrictions and characteristics may limit
 the ability of EMU member countries to implement monetary policy to address regional economic conditions and significantly
 impact every European country and their economic partners, including those countries that are not members
 of the EMU. In addition, those EU member states that are not currently in the Eurozone (Bulgaria, the Czech Republic,
 Denmark, Hungary, Poland, Romania, and Sweden), excluding Denmark, are required to seek to comply with convergence
 criteria to permit entry to the Eurozone. The economies and markets of European countries are often closely
 connected and interdependent, and events in one country in Europe can have an adverse impact on other European
 countries. Decreasing imports or exports, changes in governmental or other regulations on trade, changes in the
 exchange rate of the euro or other European currency, the threat of default or actual default by one or more EU member
 countries, or other European countries, on its sovereign debt, and/or an economic recession in one or more European
 countries may have a significant adverse effect on the economies of other European countries and major trading
 partners outside Europe. <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 national unemployment; the possible default
 of government debt in several European countries; public health crises; political unrest; economic sanctions; inflation;
 energy crises; the future of the euro as a common currency; and war and military conflict, such as 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 order to prevent further economic
 deterioration, certain countries, without prior warning, can institute "capital controls." Countries may use these
 controls to restrict volatile movements of capital entering and exiting their country. Such controls may negatively affect the Fund's
 investments. 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. Many European
 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 European countries and their financial 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. In addition, issuers may face difficulties obtaining credit or refinancing existing obligations;
 financial institutions may require government or central bank support, or need to raise capital, and/or be impaired
 in their ability to extend credit. Furthermore, certain European 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. Certain European countries have also developed increasingly strained relationships with the U.S., and if
 these relationships were to worsen, they could adversely affect European issuers that rely on the U.S. for trade. <br> In
 addition, the national politics of European countries have been unpredictable and subject to influence by disruptive political
 groups, ideologies, and polarizing political events such as the conflict between Israel and Hamas. Secessionist movements,
 as well as government or other responses to such movements, may create instability and uncertainty in a country
 or region. 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 and in the Middle East also could impact financial
 markets, as could military conflicts. For example, Houthi attacks on commercial shipping in the Red Sea and Gulf
 of Aden, and retaliatory action, may disrupt supply chains and cause difficulties for impacted businesses, including

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those that wish to ship goods through that route. The impact of these kinds of events could be significant and far-reaching and materially impact the value and liquidity of the Fund's investments. Russia's war with Ukraine has negatively impacted European economic activity. The Russia/Ukraine war and Russia's response to sanctions imposed by the U.S. and other countries are impossible to predict, but have severely impacted the performance of the economies of European and other countries, including through adverse effects to global financial and energy markets, global supply chains and global growth, and consequential inflation. Investments in companies with contractual relationships with Russian counterparties, or with significant operations and/or assets in Russia could be adversely impacted by the new legal, political, and regulatory environment, whether by increased costs or the termination of business plans or operations due to sanctions. Various companies operating in Russia, or with Russian counterparties, have faced difficulties enforcing Russian debts or contractual reliefs due to the Russian court's hostility towards European companies in response to sanctions.<br>Certain countries have applied to become new member countries of the EU, and these candidate countries' accessions may become more controversial to the existing EU members. Some member states may repudiate certain candidate countries joining the EU due to concerns about the possible economic, immigration and cultural implications. Certain other countries have applied to join or, in the case of Finland and Sweden, have recently joined, the North Atlantic Treaty Organization ("NATO"). Russia is understood to oppose certain expansions, or potential expansions, of NATO and the EU, and its reaction to such developments could negatively impact European economic activity. The United Kingdom withdrew from the European Union on January 31, 2020 and entered into a transition period, which ended on December 31, 2020. The longer-term economic, legal, and political framework between the United Kingdom and the EU is still developing and may lead to ongoing political and economic uncertainty in the United Kingdom, Europe, and the global market. Investments in companies with significant operations and/or assets in the United Kingdom could be adversely impacted by the new legal, political, and regulatory environment, whether by increased costs or impediments to the implementation of business plans. The uncertainty resulting from any further exits from the EU, or the possibility of such exits, would also be likely to cause market disruption in the EU and more broadly across the global economy, as well as introduce further legal, political, and regulatory uncertainty in Europe.

□  ***United Kingdom Securities.*** 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> On
 December 31, 2020, the United Kingdom left the European Union in an event commonly referred to as "Brexit." The
 United Kingdom and the European Union then reached a trade agreement that became effective on May 1, 2021,
 after being ratified by all applicable United Kingdom and European Union governmental bodies. Until the economic
 effects of Brexit become clearer, and while a period of political, regulatory and commercial uncertainty continues,
 there remains a risk that Brexit may have a negative impact on the United Kingdom, the broader global economy,
 or the value of the British pound sterling, any of which may impact the value of Fund investments. <br> The
 United Kingdom's economy relies heavily on the export of financial services to the United States and other European
 countries. At the end of March 2021, the UK and the European Union concluded technical discussions on the
 content of a Memorandum of Understanding on financial services, setting out how the UK and EU financial services
 regulators will co-operate and share information. The implementation of this legal framework and basis of co-operation
 remains to be seen, and so the period following the United Kingdom's withdrawal from the European Union
 is expected to be one of significant political and economic uncertainty, particularly until the United Kingdom government
 and EU member states agree and implement the terms of the United Kingdom's future relationship with
 the European Union. <br> Although the 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 as a result of Brexit 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.

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• **Pacific Basin Securities**.
 The Pacific Basin region includes countries in various stages of economic development. Many Pacific
 Basin 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 Pacific Basin 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. Natural disasters may become more frequent and severe as a result of global climate change.
 Given the particular vulnerability of the region to the effects of climate change, disruptions in international efforts
 to address climate-related issues may have a disproportionate impact on investments in the region. The existence
 of overburdened infrastructure and obsolete financial systems also presents risks in certain Pacific Basin countries,
 as do environmental problems. <br> The
 economies of most Pacific Basin 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 Pacific Basin countries. The economies of certain
 Pacific Basin 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. The economies
 of many countries in the region may be heavily dependent on international trade and may accordingly be 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 these countries. The economies of certain countries
 may depend to a significant degree upon only a few industries and/or exports of primary commodities and, therefore,
 be vulnerable to changes in commodity prices or a weakening of global demand for these products that, in turn,
 may be affected by a variety of factors, including, for example, decline in growth rates in China, which could significantly
 lower demand for the natural resources many countries export. Since China has been such a major source of
 demand for raw materials and a supplier of foreign direct investment to exporting economies, the slowdown of the Chinese
 economy could significantly affect regional growth. In addition, the trading relationship between China and several

 South China Sea, which has created diplomatic tension in the region that may adversely impact the economies of the
 affected countries. <br> The
 Australia and New Zealand economies are also heavily dependent on the economies of China and other Pacific Basin
 countries. 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 may be characterized by higher inflation than other economies, 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 certain Pacific Basin countries may be substantially smaller, have less trading volume, and be 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, companies traded on stock exchanges in the region may be 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 may be 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 the Pacific Basin 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 Pacific Basin securities markets may represent a disproportionately large percentage
 of market capitalization and trading value. The limited liquidity of securities markets in the Pacific Basin 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

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Pacific Basin securities markets are susceptible to being influenced by large investors trading significant blocks of securities. 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 Pacific Basin bond markets 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 Pacific Basin securities markets may represent a disproportionately large percentage of market capitalization and trading value. The limited liquidity of securities markets in the region 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 region's securities markets are susceptible to being influenced by large investors trading significant blocks of securities.<br>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.<br>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 Pacific Basin 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.<br>Certain developing economies in the Pacific Basin 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 Pacific Basin 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 Pacific Basin 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. Any of the above could adversely affect the value of the Fund's investments.

**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

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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.

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.

**Inflation Index-Linked Securities** — Inflation index-linked 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 index-linked 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 index-linked securities are expected to react 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 index-linked 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 index-linked securities in the same manner as conventional bonds. Any increase in the principal amount of an inflation index-linked 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 index-linked securities may lose value in the event that the actual rate of inflation is different than the rate of the inflation index. The daily adjustment of the principal value of U.S. TIPS is currently tied to the non-seasonally adjusted Consumer Price Index for All Urban Consumers ("CPI-U"), which is calculated monthly by the U.S. Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy. There can be no assurance that such index will accurately measure the real rate of inflation in the prices of goods and services. Therefore, the inflation adjustment made to TIPS may not be accurate. In addition, inflation index-linked securities are subject to risks related to the discontinuation, substitution or fundamental alteration of CPI-U 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 index-linked 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 index-linked 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.

Any increase in principal value of inflation index-linked securities caused by an increase in the index may be treated as original issue discount and taxable in the year the increase occurs, even though the Fund will not receive cash representing the increase at that time. As a result, the Fund could be required at times to liquidate other investments, including when it is not advantageous to do so, in order to satisfy its collateral requirements, to meet distribution requirements as a RIC and to eliminate any fund-level income tax liability under the Internal Revenue Code.

**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

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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.

**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. 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 the 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.

**Leverage Risk** — Borrowing transactions, reverse repurchase agreements, certain derivatives transactions, securities lending transactions and other investment transactions such as when-issued, delayed-delivery, or forward commitment transactions may create investment leverage. When the Fund engages in transactions that have a leveraging effect on the Fund's investment, the value of the Fund will be potentially more volatile and all other risks will tend to be compounded. This is because leverage generally creates investment risk with respect to a larger base of assets than the Fund would otherwise have and so magnifies the effect of any increase or decrease in the value of the Fund's underlying assets. The use of leverage is considered to be a speculative investment practice and may result in losses to the Fund. Certain derivatives have the potential for unlimited loss, regardless of the size of the initial investment. The use of leverage may cause the Fund to liquidate positions when it may not be advantageous to do so to satisfy repayment, interest payment, or margin obligations or to meet asset segregation or coverage requirements.

**Loan Interests, Participations and Assignments** — 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 Fixed-Income Investments discussed above and carry additional risks described in this section. Loan interests are different from traditional debt securities in that debt securities generally are part of a large issue of securities to the public, whereas loan interests may not be a security and may represent a specific commercial loan to a borrower.<br>Loan Interests. The Fund's ability to receive payments in connection with loans depends on the financial condition of the borrower. The sub-advisor may not rely solely on another lending institution's credit analysis of the borrower, but may perform its own investment analysis of the borrower. 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. 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 sub-advisor. Loan interests of borrowers whose creditworthiness is poor involves substantially greater risks and may be highly speculative.<br>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

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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.<br>Loans may be issued in connection with highly leveraged transactions, such as restructurings, leveraged buyouts, leveraged recapitalizations and acquisition financing. In such highly leveraged transactions, the borrower assumes large amounts of debt in order to have the financial resources to attempt to achieve its business objectives. Accordingly, loans that are part of highly leveraged transactions involve a significant risk that the borrower may default or go into bankruptcy or become insolvent. Borrowers that are in bankruptcy or restructuring may never pay off their debts 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 loan.<br>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 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. 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. 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.<br>Participation Interests. The participation by the Fund in a lender's portion of a loan typically will result in the Fund having a contractual relationship only with such lender, not with the business entity borrowing the funds. As a result, the Fund may have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the participation and only upon receipt by such lender of payments from the borrower. As a result, the Fund will be exposed to the credit risk of both the borrower and the institution selling the participation.<br>Assignments. The purchaser of an assignment typically succeeds to all the rights and obligations under the loan agreement with the same rights and obligations as the assigning lender. Assignments may, however, 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. In addition, the Fund may not be able to unilaterally enforce all rights and remedies under the loan and with regard to any associated collateral.<br>Resale Restrictions. Loans may be subject to legal or contractual restrictions on resale. Loans normally are not registered with the SEC or any state securities commission and 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 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, 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 any such investments are determined to be illiquid, they will be subject to the Fund's restrictions on investments in illiquid securities.<br>In certain circumstances, the Manager, the sub-advisor or their affiliates (including on behalf of clients other than the Fund) or the Fund may be in possession of material non-public information about a borrower as a result of its ownership of a loan and/or corporate debt security of a borrower. Because U.S. laws and regulations generally prohibit trading in securities of issuers while in possession of material, non-public information, the Fund could be unable (potentially for a substantial period of time) to trade securities or other instruments issued by the borrower when it would otherwise be advantageous to do so and, as such, could incur a loss. In circumstances when the sub-advisor or the Fund determines to avoid or to not receive non-public information about a borrower for loan investments being considered for acquisition by the Fund or held by the Fund, the Fund may be disadvantaged relative to other investors that do receive such information, and the Fund may not be able to take advantage of other investment

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opportunities that it may otherwise have.<br>Prepayment Risk. 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 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.

Lender Liability. 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.

**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.

•  ***Adjustable Rate Mortgages ("ARMs")*** .
 ARMs contain maximum and minimum rates beyond which the mortgage interest
 rate may not vary over the lifetime of the security. In addition, certain ARMs provide for additional limitations on
 the maximum amount by which the mortgage interest rate may adjust for any single adjustment period. Alternatively,
 certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly
 payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is added to the principal
 balance of the mortgage loan, which is repaid through future monthly payments. The adjustable interest rate feature
 of the mortgages underlying ARMs generally acts as a buffer to reduce sharp changes in the market value of ARMs
 in response to normal interest rate fluctuations. As the interest rate on the mortgages underlying ARMs are reset periodically,
 yields of the securities will gradually align themselves to reflect changes in market rates. During periods of rising
 interest rates, however, changes in the coupon rate lag behind changes in the market rate. During periods of extreme
 fluctuations in interest rates, the resulting fluctuation of ARM rates could affect the ARM's market value. Most ARMs
 generally have annual reset limits or "caps," for example of 100 to 200 basis points. Fluctuation in interest rates above
 these levels could cause such mortgage-backed securities to "cap out" and to behave more like long-term, fixed-rate
 debt securities. During periods of declining interest rates, the coupon rates may readjust downward, and result
 in lower yields. Because of this feature, the value of ARMs will likely not rise during periods of declining interest rates
 to the same extent as fixed-rate instruments.

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• **Collateralized Mortgage Obligations** **("CMOs").** A CMO is a debt obligation of a legal entity that is collateralized by mortgages
 or mortgage-related assets. These securities may be issued by U.S. Government agencies, instrumentalities or
 sponsored enterprises such as Fannie Mae or Freddie Mac or by trusts formed by private originators of, or investors in,
 mortgage loans, including savings and loan associations, mortgage bankers, commercial banks, insurance companies,
 investment banks and special purpose subsidiaries of the foregoing. CMOs divide the cash flow generated from
 the underlying mortgages or mortgage pass-through securities into different groups referred to as "tranches," which
 are typically retired sequentially over time in order of priority. 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 they are more
 typically collateralized by portfolios of mortgage pass-through securities guaranteed by GNMA; FHLMC and FNMA
 (each a government-sponsored enterprise and may be owned entirely by private shareholders); and their income streams. <br> 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 certain tranches of CMOs
 may be subject to contingencies, and certain tranches may bear some or all of the risk of default on the underlying
 mortgages. CMO tranches 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 CMO tranches with the earliest maturities
 generally will be retired prior to their stated maturity date. Thus, the early retirement of particular tranches of a
 CMO would have a similar 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's
 investments in CMOs. An increase or decrease in prepayment rates (resulting from a decrease or increase
 in mortgage interest rates) will affect the yield, average life, and price of CMOs. Under certain CMO structures, certain
 tranches have priority over others with respect to the receipt of repayments on the mortgages. Therefore, depending
 on the type of CMOs in which the
 Fund invests, the investment may be subject to a greater or lesser risk of prepayment
 than other types of mortgage-related securities. The prices of certain CMOs, depending on their structure and
 the rate of prepayments, can be volatile. Some CMOs may also not be as liquid as other securities.

• **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 borrowers 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.

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• **Residential Mortgage-Backed Securities ("RMBSs").** RMBSs include securities that reflect an interest in, and are secured
 by, interest paid on loans for residential real property, such as mortgages, home-equity loans and subprime mortgages.
 Some RMBSs, called agency RMBSs, are guaranteed or supported by U.S. government agencies or by government
 sponsored enterprises, such as the Federal National Mortgage Association ("Fannie Mae") or the Federal Home

 are not guaranteed or supported by these government agencies or government sponsored enterprises. Residential
 loans may be prepaid at any time. Prepayments could reduce the yield received on the related issue of RMBS.
 RMBS are particularly susceptible to prepayment risk, as they generally do not contain prepayment penalties and a
 reduction in interest rates will increase the prepayments on the  RMBS, resulting in a reduction in yield to maturity for holders
 of such securities. <br> Residential
 mortgage loans in an issue of RMBS may be subject to various U.S. federal and state laws, public policies and
 principles of equity that protect consumers which, among other things, may regulate interest rates and other fees, require
 certain disclosures, require licensing of originators, prohibit discriminatory lending practices, regulate the use of consumer
 credit information, and regulate debt collection practices. In addition, a number of legislative proposals have been
 introduced in the United States at both the federal, state, and municipal level that are designed to discourage predatory
 lending practices. Violation of such laws, public policies, and principles may limit the servicer's ability to collect
 all or part of the principal or interest on a residential mortgage loan, entitle the borrower to a refund of amounts
 previously paid by it, or subject the servicer to damages and administrative enforcement. Any such violation could
 also result in cash flow delays and losses on the related issue of RMBS. Credit-related risk on RMBS arises from losses
 due to delinquencies and defaults by the borrowers in payments on the underlying mortgage loans and breaches by
 originators and servicers of their obligations under the underlying documentation pursuant to which the RMBS are issued.
 If a residential mortgage loan is in default, foreclosure of such residential mortgage loan may be a lengthy and difficult
 process, and may involve significant expenses. Furthermore, the market for defaulted residential mortgage loans
 or foreclosed properties may be very limited. The net proceeds obtained by the holder on a residential mortgage loan
 following the foreclosure on the related property may be less than the total amount that remains due on the loan. The
 prospect of incurring a loss upon the foreclosure of the related property may lead the holder of the residential mortgage
 loan to restructure the residential mortgage loan or otherwise delay the foreclosure process.

**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. Any such fees and expenses are reflected in the Fees and Expenses Table for the Fund in its Prospectus. To the extent the Fund invests in investment company securities advised by the Manager, 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. In addition, the Fund is generally limited to selling 3% of its total voting stock to an investment company. However, the Fund may exceed these limits in reliance on a statutory exemption, the terms and conditions of an exemptive order from the SEC, or Rule 12d1-4 under the Investment Company Act. In each case, such investments are subject to various conditions, including limits on control and voting of acquired fund shares, required 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:

• **ETFs.** The Fund may
 purchase shares of ETFs. ETFs trade like a common stock and passive ETFs usually represent a fixed portfolio
 of securities designed to track the performance and dividend yield of a particular domestic or foreign market index.
 Typically, the
 Fund would purchase passive ETF shares to obtain exposure to all or a portion of the stock or bond market.
 As a shareholder of an ETF, the
 Fund would be subject to its ratable share of the ETF's expenses, including its advisory
 and administration expenses. An investment in an ETF generally presents the same primary risks as an investment
 in a conventional mutual fund (i.e., one that is not exchange traded) that has the same investment objective,
 strategies, and policies. The price of an ETF can fluctuate within a wide range, and the
 Fund could lose money
 investing in an ETF if the prices of the securities owned by the ETF decline in value. In addition, ETFs are subject to
 the following risks that do not apply to conventional mutual funds: (1) the market price of the ETF's shares may trade at
 a discount or premium to their NAV per share; (2) an active trading market for an ETF's shares may not develop or be maintained;
 or (3) trading of an ETF's shares may be halted if the listing exchange's officials deem such action appropriate,
 the shares are de-listed from the exchange, or the activation of market-wide "circuit breakers" (which are tied
 to large decreases in stock prices) halts stock trading generally.

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• **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.

**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), 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.

**Redemption Risk** — The Fund may experience periods of heavy redemptions that could cause the Fund to sell assets at inopportune times at a loss or depressed value. The risk of loss is greater if redemption requests are frequent, occur in times of overall market turmoil or declining prices for the securities sold, or when the securities the Fund wishes to sell are illiquid. The sale of assets to meet redemption requests may create capital gains, which the Fund would then be required to distribute to shareholders. Redemption risk is greater to the extent that one or more investors or intermediaries control a large percentage of investments in the Fund, have short investment horizons, or have unpredictable cash flow needs. Additionally, during periods of heavy redemptions, the Fund may borrow funds from the interfund credit facility, or from a bank line of credit, which may increase costs. The ability or willingness of dealers and other institutional investors to buy or hold fixed-income securities or otherwise to "make a market" in debt securities has also been reduced. Heavy redemptions, whether by a few large investors or many smaller investors, could hurt the Fund's performance.

**Reliance on Corporate Management and Financial Reporting Risk** — The sub-advisor may select investments for the Fund on the basis of information and data made directly available to the sub-advisor by the issuers of securities or through sources other than the issuers such as collateral pool servicers. The sub-advisor is dependent upon the integrity of the management of these issuers and of such servicers and the financial and collateral performance reporting processes in general. Investors, including the Fund, can incur material losses as a result of corporate mismanagement and fraud resulting in accounting irregularities.

**Responsible Investing Considerations Risk** — The sub-advisor has adopted a Responsible Investment Policy (the "Responsible Investment Policy") to help ensure that risks and opportunities associated with environmental, social and governance ("ESG") matters are appropriately considered within the sub-advisor's investment management process. The sub-advisor adopts ESG integration for the purpose of (1) gaining a more holistic view of relevant investment risks; (2) understanding the potential drivers of performance; and (3) making better-informed decisions. Under the Responsible Investment Policy, the sub-advisor will, subject to the

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limitations described below, integrate the consideration of one or more ESG factors alongside other non-ESG factors (e.g., financial attributes), when making investment decisions. The Fund does not seek to implement a specific ESG, impact or sustainability strategy.

When performing an ESG assessment, the sub-advisor conducts a qualitative and/or quantitative assessment of relevant ESG factors that the sub-advisor believes may impact an investment's risk-return profile. While ESG factors can vary for each investment, they are generally related to the issuer's position on ESG issues. As part of this assessment, the sub-advisor has established a proprietary research framework to score certain issuers with respect to ESG attributes that may have a potential financial impact on the relevant investment ("Material ESG Factors"). Each scored issuer is assigned an environmental score, a social score, and a governance score, with the scoring based on whether the issuer is determined to be subject to material environmental, social, or governance risks that may negatively impact credit quality and/or valuations and/or whether the issuer is believed to not be sufficiently mitigating such risks. Each issuer's environmental, social and governance scores are aggregated into a composite score, reflecting the sub-advisor's overall ESG view of such issuer. Subject to its Responsible Investment Policy and the exceptions noted below, the sub-advisor seeks to assess the Material ESG Factors involving each investment made on an initial basis and, thereafter, as new material information regarding Material ESG Factors becomes known to the sub-advisor. Such assessments may prioritize those positions that are significant and where such assessments may have a material economic impact on client accounts.

The sub-advisor has determined that ESG factors would be expected to have no, a limited or an immaterial impact on the economics or valuation of certain asset class and investment types and that modifying the Fund's portfolio based on ESG factors may be inconsistent with the Fund's investment objective. In such cases, the sub-advisor generally will not perform an ESG assessment or otherwise take any action based on any ESG factors.

The sub-advisor generally will assess but not score issuers within certain sectors, such as sovereign debt, U.S. Treasury and emerging market securities. Additionally, the sub-advisor generally will not assess an issuer for ESG factors altogether if sufficient relevant or reliable information is not readily available. Further, investments in cash, cash equivalents and other similar investments; investments made for short-term purposes; commodities; equities; municipal securities; derivative instruments (irrespective of the reference asset or counter party); and indices (or their components), as well as investments made to obtain broad-based investment exposure or that are required by or integral to the Fund's investment strategies, are generally not assessed for ESG purposes.

Implementation of the sub-advisor's Responsible Investment Policy will vary depending on asset type, and the specific method of implementation is determined by the applicable portfolio management team. There can be no guarantee that a company that a portfolio manager believes to meet one or more ESG standards will actually conduct its affairs in a manner that is less destructive to the environment, or will actually promote positive social and economic developments. Because fixed income investments generally represent a promise to pay principal and interest by an issuer, and not an ownership interest, and may involve complex structures, ESG-related investment considerations may have a more limited impact on risk and return (or may have an impact over a different investment time horizon) relative to other asset classes, and this may be particularly true for shorter-term investments.

**Senior Loans** — The Fund may invest in senior loans, which generally include variable or floating rate loans that hold a senior position in the capital structure of U.S. and foreign corporations, partnerships or other business entities. Under normal circumstances, senior loans have priority of claim ahead of other obligations of a borrower in the event of liquidation. Senior loans may be collateralized or uncollateralized. They pay interest at rates that float above, or are adjusted periodically based on, a benchmark that reflects current interest rates. In addition to the risks typically associated with debt securities, such as credit and interest rate risk, senior loans are also subject to the risk that a court could subordinate a senior loan, which typically holds a senior position in the capital structure of a borrower, to presently existing or future indebtedness or take other action detrimental to the holders of senior loans. In the event of an in court or out of court restructuring of a senior loan in which the Fund invests, the Fund may acquire (and subsequently sell) equity securities or exercise warrants that it receives. Senior loans usually have mandatory and optional prepayment provisions. If a borrower prepays a senior loan, the Fund will have to reinvest the proceeds in other senior loans or securities that may pay lower interest rates.

**Structured Products and Structured Notes Risk -** Generally, structured investments are interests in entities organized and operated for the purpose of restructuring the investment characteristics of underlying investment interests or securities. These investment entities may be structured as trusts or other types of pooled investment vehicles. This type of restructuring generally involves the deposit with or purchase by an entity of the underlying investments and the issuance by the entity of one or more classes of securities backed by, or representing interests in, the underlying investments or referencing an indicator related to such investments. "Structured Products and Structured Notes Risk" refers to the risk that an investment in a structured product, which includes, among other things, CDOs, mortgage-backed securities, other types of asset-backed securities and certain types of structured notes, may decline in value due to changes in the underlying instruments, indexes, interest rates or other factors on which the product is based ("reference measure"). Depending on the reference measure used and the use of multipliers or deflators (if any), changes in interest rates and movement of the reference measure may cause significant price and cash flow fluctuations.

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Application of a multiplier is comparable to the use of financial leverage, a speculative technique. Leverage magnifies the potential for gain and the risk of loss. As a result, a relatively small decline in the value of the underlying investments or referenced indicator could result in a relatively large loss in the value of a structured product. Holders of structured products indirectly bear risks associated with the reference measure, are subject to counterparty risk and typically do not have direct rights against the reference measure. The Fund generally has the right to receive payments to which it is entitled only from the structured product, and generally does not have direct rights against the issuer.

While certain structured investment vehicles enable the investor to acquire interests in a pool of securities without the brokerage and other expenses associated with directly holding the same securities, investors in structured vehicles generally pay their share of the investment vehicle's administrative and other expenses.

Structured products are generally privately offered and sold, and thus, are not registered under the securities laws and may be thinly traded or have a limited trading market and may have the effect of increasing the Fund's illiquidity to the extent that the Fund, at a particular point in time, may be unable to find qualified buyers for these securities. In addition to the general risks associated with fixed income securities discussed herein, structured products carry additional risks including, but not limited to: (i) the possibility that distributions from underlying investments will not be adequate to make interest or other payments; (ii) the quality of the underlying investments may decline in value or default; (iii) the possibility that the security may be subordinate to other classes of the issuer's securities; and (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.<br>Other portions of this SAI provide more information about these specific structured products.

Structured notes are derivative securities for which the amount of principal repayment and/or interest payments is based on the movement of one or more "factors." These factors may include, but are not limited to, currency exchange rates, interest rates (such as the prime lending rate or another industry-standard floating-rate), referenced bonds and stock indices. Some of these factors may or may not correlate to the total rate of return on one or more underlying instruments referenced in such notes. In some cases, the impact of the movements of these factors may increase or decrease through the use of multipliers or deflators.

Investments in structured notes involve risks including interest rate risk, credit risk and market risk. Changes in interest rates and movement of the factor, when the return of the structured note is based on the movement of one or more factors, may cause significant price fluctuations. Additionally, changes in the value of the reference instrument or security may cause the interest rate on the structured note to be reduced to zero and any further changes in the reference instrument may then reduce the principal amount payable on maturity. In the case of structured notes where the reference instrument is a debt instrument, such as credit-linked notes, the Fund will be subject to the credit risk of the issuer of the reference instrument and the issuer of the structured note

**Unrated Securities Risk** — Because the Fund may purchase securities that are not rated by any rating organization, the sub-advisor, after assessing their credit quality, may internally assign ratings to certain of those securities, in categories of those similar to those of rating organizations. Investing in unrated securities involves the risk that the sub-advisor may not accurately evaluate the security's comparative credit rating. To the extent that the Fund invests in unrated securities, the Fund's success in achieving its investment objective may depend more heavily on the sub-advisor's credit analysis than if the Fund invested exclusively in rated securities. Less public information is typically available about unrated securities or issuers. Some unrated securities may not have an active trading market or may be difficult to value, which means the Fund might have difficulty selling them promptly at an acceptable price. Unrated securities may also be subject to greater liquidity risk and price volatility.

**U.S. Government Agency Securities** — U.S. Government agency securities are issued or guaranteed by the U.S. Government or its agencies or instrumentalities or sponsored enterprises. Some obligations issued by U.S. Government agencies and instrumentalities, such as those of the Government National Mortgage Association ("GNMA"), are supported by the full faith and credit of the U.S. Treasury; others, such as those of the Federal Home Loan Bank ("FHLB") or the Federal Farm Credit Bank ("FFCB"), by the right of the issuer to borrow from the U.S. Treasury; others, such as those of the Federal National Mortgage Association (''Fannie Mae''), Federal Home Loan Mortgage Corporation (''Freddie Mac''), by the discretionary authority of the U.S. Government to purchase certain obligations of the agency or instrumentality; and others, such as those of the Federal Farm Credit Bureau, 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, obligations of GNMA, FHLB, FFCB, Fannie Mae, Freddie Mac, the Federal Farm Credit Bureau, other U.S. Government agency obligations and repurchase agreements secured thereby. U.S. Government agency securities are subject to credit risk, interest rate risk and market risk.

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**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 rate, the Secured Overnight Financing Rate ("SOFR"), or a 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. Certain floaters may carry a demand feature that permits the holder to tender them back to the issuer of the underlying instrument, or to a third party, at par value prior to maturity. When the demand feature of certain floaters represents an obligation of a foreign entity, the demand feature will be subject to certain risks discussed under "Foreign Investing."

**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 the 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.

Pursuant to Rule 18f-4 under the Investment Company Act, 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-advisor's 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 Prospectus, the Fund may (except where otherwise indicated):

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.

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.

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.

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 acquiring 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.

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.

**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 outstanding shares of the Fund are present or represented at the shareholders' meeting or (b) more than 50% of the shares of the Fund.

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The Fund may not:

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.

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).

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.

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 with respect to portfolio securities.

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.

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 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.

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.

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 or guaranteed by the U.S. Government,
 its agencies or instrumentalities; and (ii) tax-exempt securities issued by municipalities or their agencies and
 authorities.

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 (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 set forth in (8) above, 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.

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

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

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.

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 Prospectus, the other investment policies described in this SAI are not fundamental and may be changed by approval of the Trustees.

**TEMPORARY OR DEFENSIVE INVESTMENTS**

In times of unstable or adverse market, economic, political or other conditions, where the Manager or the sub-advisor believes 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-advisor.

**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 the sub-advisor's investment outlook.

**DISCLOSURE OF PORTFOLIO HOLDINGS**

The Fund publicly discloses portfolio holdings information as follows:

1. a
 complete list of holdings for the Fund on an annual and semi-annual basis within seventy days of the end of each fiscal
 semi-annual period in publicly available filings of Form  N-CSR with the SEC (available on the SEC's website at www.sec.gov)
 and on the Fund's website (www.americanbeaconfunds.com);

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);

3. a
 complete list of holdings for the Fund as of the end of each calendar quarter on the Fund's website (www.americanbeaconfunds.com)
 approximately sixty days after the end of the calendar quarter; and

4. the
 ten largest holdings for  the Fund as of the end of each calendar quarter on the Fund's website (www.americanbeaconfunds.com)
 and in sales materials approximately fifteen days after the end of the calendar quarter.

Public disclosure of the Fund's holdings on the website and in sales materials may be delayed when an investment manager informs the Fund that such disclosure could be harmful to the Fund. In addition, individual holdings may be omitted from website and sales material disclosure, when such omission is deemed to be in the Fund's best interest. Disclosure of the Fund's ten largest holdings may exclude U.S. Treasury securities and cash equivalent assets, although such holdings will be included in the Fund's complete list of holdings.

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**Disclosure of Nonpublic Holdings**

Occasionally, certain interested parties — including individual investors, institutional investors, intermediaries that distribute shares of the Fund, third-party service providers, rating and ranking organizations, 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 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.

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 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, whose affiliates may also have access to such information:

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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 | Securities lending agent for Funds that participate in securities lending, Fund's custodian and foreign custody manager, sub-administrator, Fund administration service provider, and foreign sub-custodian | Complete list on intraday basis with no lag |
| KPMG International | Service provider to State Street | Complete list on annual basis with lag |
| PricewaterhouseCoopers LLP | Fund's independent registered public accounting firm | Complete list on annual basis with no lag |
| FactSet Research Systems, Inc. | Performance and portfolio analytics reporting for the Manager | Complete list on daily basis with no lag |
| Bloomberg, L.P. | Performance and portfolio analytics reporting | Complete list on daily basis with no lag |

---

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 in the ordinary course of business. 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. The Manager or sub-advisor 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.

The Fund has ongoing arrangements to provide periodic holdings information to certain organizations that publish ratings and/or rankings for the Fund or that redistribute the Fund's holdings to financial intermediaries to facilitate their analysis of the Fund. The Fund has determined that disclosure of holdings information to such organizations fulfills a legitimate business purpose and is in the

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best interest of shareholders, as it provides existing and potential shareholders with an independent basis for evaluating the Fund in comparison to other mutual funds. As of the date of this SAI, all such organizations receive holdings information after it has been made public on the Fund's website.

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:

1. Recipients
 of portfolio holdings information must agree in writing to keep the information confidential until it has been posted
 to the Fund's website and not to trade based on the information;

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

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

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

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 the sub-advisor(s) from making such disclosures to their clients.

**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 does not intend to engage in securities lending activities.

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**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 Commonwealth of Massachusetts as well as the stated policies of the Fund. The Board oversees the Trust's officers and service providers, including 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 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, 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.

*Board Structure and Related Matters*

All but one member of the Board are Independent Trustees. Douglas A. Lindgren, an Independent Trustee, serves as Chair of the Board. The 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 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 standing 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 whether to approve the Fund's management agreement with the Manager and, as

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applicable, its investment advisory agreement(s) with its investment advisor(s), while specific matters related to oversight of the Fund's independent auditors have been delegated by the Board to its Audit and Compliance Committee. 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 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 27 series within the American Beacon Funds, 1 series within the American Beacon Institutional Funds Trust, and 4 series within the American Beacon Select Funds. The same persons who constitute the Board of the Trust also constitute the Board of the American Beacon Institutional Funds Trust and the American Beacon Select Funds and each Trustee oversees the Trusts' combined 30 series.

The Board holds five (5) regularly scheduled meetings each year. The Board may hold special meetings, as needed, either in person or by videoconference or telephone, to address matters arising between regular meetings. The Independent Trustees also conduct executive sessions without the presence of management personnel, including at least quarterly in a session at which no Trustees who are interested persons or management are present, and may hold special meetings, as needed, either in person or by videoconference or 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, and shareholders may contact them directly, individually or collectively as a Board, at such address. Each Trustee serves for an indefinite term or until his or her removal, resignation, or retirement.\*

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** **\*** | **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>(1954)\*\* | Trustee since 2008 | Trustee since 2017 | **Capital Formation and Currency** **Solutions, Mesirow Financial** **Administrative Corporation:** Managing Director (2016-Present);<br> **American Beacon Sound Point** **Enhanced Income Fund:** Trustee (2018–2021);<br> **American Beacon Apollo Total** **Return Fund:** Trustee (2018–2021) |
| **NON-INTERESTED TRUSTEES** |  |  |  |
| Gilbert G. Alvarado<br>(1969) | Trustee since 2015 | Trustee since 2017 | **The Conrad Prebys Foundation:** Chief Financial Officer (2022-Present);<br> **Sierra Health Foundation** (health conversion private foundation): Executive Vice President & CCO (2022); Senior Vice President & CFO (2012-2022); CFO (2006-2011);<br> **Sierra Health Foundation - Center** **for Health Program Management** (California public benefit corporation): Senior Vice President & CFO (2012- 2022);<br> **SJVIIF, LLC (impact investment** **fund):** President (2018-2022);<br> **American Beacon Sound Point** **Enhanced Income Fund**: Trustee (2018–2021);<br> **American Beacon Apollo Total** **Return Fund**: Trustee (2018–2021). |
| Gerard J. Arpey<br>(1958) | Trustee since 2012 | Trustee since 2017 | **Emerald Creek Group** (private equity firm): Partner (2011-Present); S.C. Johnson & Son, Inc. (privately held company): Director (2008-present);<br> **The Home Depot, Inc.**: Director (2015-Present);<br> **American Beacon Sound Point** **Enhanced Income Fund**: Trustee (2018–2021);<br> **American Beacon Apollo Total** **Return Fund**: Trustee (2018–2021). |
| Claudia A. Holz<br>(1957) | Trustee since 2018 | Trustee since 2018 | **Blue Owl Capital, Inc.**: Independent Director (2021-Present);<br> **American Beacon Sound Point** **Enhanced Income Fund**: Trustee (2018–2021);<br> **American Beacon Apollo Total** **Return Fund**: Trustee (2018–2021) |
| Douglas A. Lindgren<br>(1961) | Chair since 2025<br>Trustee since 2018 | Chair since 2025<br>Trustee since 2018 | **JLL Income Property Trust**: Director (2022-Present);<br> **American Beacon Sound Point** **Enhanced Income Fund**: Trustee (2018–2021);<br> **American Beacon Apollo Total** **Return Fund**: Trustee (2018–2021). |

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|:---|:---|:---|:---|
| **Name and Year of Birth** **\*** | **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** |
| Barbara J. McKenna<br>(1963) | Trustee since 2012 | Trustee since 2017 | **Longfellow Investment** **Management Company**: Managing Principal (2005-Present, President since 2009);<br> **External Diversity Council of the** **Federal Reserve Bank of Boston**: Member (2015-2023);<br> **United States Tennis Association**: Board Advisor (2021-Present);<br> **American Beacon Sound Point** **Enhanced Income Fund**: Trustee (2018–2021);<br> **American Beacon Apollo Total** **Return Fund**: Trustee (2018–2021). |
| Janet C. Smith\*\*\*<br>(1965) | Trustee since 2025 | Trustee since 2025 | **Putnam Investments, LLC and** **Putnam Management:** Head of Fund Administration Services (2011–2024);<br> **Putnam Funds Complex** **(Approximately 105 Funds):** Vice President, Principal Financial Officer (2016-2024), Principal Accounting Officer and Assistant Treasurer (2008-2024), Putnam Ombudsman (2016-2024). |
| Paul Zemsky<br>(1962) | Trustee since 2025 | Trustee since 2025 | **Focus Consulting Group:** Consulting Partner: (2024-Present);<br> **ML Tech (Crypto Fund-of-Funds)**: Strategic Advisor: (2024-Present); <br> **Voya Investment Management:** Senior Managing Director, Chief Investment Officer, Multi-Asset Strategies and Solutions (2007–2023); Head of Derivative Strategy and Risk Management, General Account (2005-2006). |

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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.

\*\*\* Prior to July 1, 2024, Ms. Smith served as an officer of certain affiliates of Putnam Investment Management, LLC ("Putnam"), and as Vice President, Principal Financial Officer, Principal Accounting Officer and Assistant Treasurer of various registered open-end investment companies for which Putnam serves as investment adviser ("Putnam Funds Complex"). On January 1, 2024, Putnam was acquired (the "Putnam Acquisition") by Franklin Resources, Inc. ("Franklin"), following which it is under common control with Brandywine Global Investment Management, LLC ("Brandywine"), an investment adviser to certain series of the Trust. In addition, Jane E. Trust has served on the Boards of Trustees of the Putnam Funds Complex since January 2024. Ms. Smith served as an officer of the Putnam Funds Complex prior to July 1, 2024. Ms. Trust holds and held positions at the following entities, which are under common control with Brandywine. Based on publicly available information, Ms. Trust has served as Senior Vice President, Fund Board Management at Franklin Templeton since 2020; as President and Chief Executive Officer of Franklin Templeton Fund Advisor, LLC, and officer and/or trustee/director of its associated funds since 2015; as Senior Managing Director of Legg Mason & Co., LLC ("Legg Mason") from 2018 to 2020; as Managing Director of Legg Mason from 2016 to 2018; and as Senior Vice President of Franklin Templeton Fund Advisor, LLC in 2015. In connection with the Putnam Acquisition, Ms. Smith sold her Class B shares of a Putnam affiliate, with a value of approximately $683,000, to a subsidiary of Franklin. In connection with this sale, Ms. Smith may be entitled to certain contingent premium payments depending on the achievement of certain financial metrics, in an amount not to exceed approximately $186,000. Ms. Smith is a participant in a Deferred Executive Compensation Plan relating to her time at Putnam, pursuant to which she will receive approximately $520,000, which will be paid over time by a Franklin affiliate as a result of the Putnam Acquisition.

In addition to the information set forth in the table 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 executive 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 nonprofit 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.

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.

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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.

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, where she led audits of large public investment company complexes and held several management roles in the firm's New York and national offices, and has since had multiple years of service as a Trustee.

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

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.

Janet C. Smith: Ms. Smith has extensive experience in the investment management industry, organizational management experience as a member of senior management, service as a senior officer of an investment manager, and as an officer of registered investment companies.

Paul Zemsky: Mr. Zemsky has extensive experience in the investment management industry, organizational management experience as a member of senior management, service as a director and chief investment officer of an investment manager, and as a portfolio manager to registered investment companies.

*Committees of the Board*

The Trust has an Audit and Compliance Committee ("Audit Committee"). The Audit Committee consists of Mses. Holz (Chair) and Smith and Mr. Arpey, each of whom are Independent Trustees. Mr. Lindgren, 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 purposes 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 Audit 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 (and related fee arrangements) of the Trust's independent auditors to perform annual audit services for the Fund and certain non-audit services for the Fund or certain affiliated parties 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"); (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; and (f) to assist the Board with the aspects of risk oversight of the Trust that are relevant to the Audit Committee, including, but not limited to, valuation, operational, and compliance risks. The Audit Committee met four (4) times during the fiscal year ended August 31, 2025.

The Trust has a Nominating and Governance Committee ("Nominating Committee") that is comprised of Messrs. Arpey (Chair), and Lindgren, each of whom are Independent Trustees . As set forth in its charter, the Nominating Committee's primary purposes are: (a) to make recommendations regarding the nomination of 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 and of the chairs of such committees; (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; (h) to consider and make recommendations relating to the compensation of Independent Trustees; (i) to assist the Board with the aspects of risk oversight of the Trusts that are relevant to the Nominating Committee, including, but not limited to, the stewardship and overall reputation of the Trusts; (j) to coordinate and supervise an annual self-evaluation by the Board of the performance of the Board and its various committees; (k) to assist the Board in monitoring and, as it deems appropriate, implementing practices that are designed to promote diversity and inclusion within the Board's membership and within the workforces of the Trusts' primary service providers and vendors; and (l) to assist the Board in coordinating with legal counsel to the Trusts and their independent Board members with respect to staffing matters, including, when applicable, succession planning with respect to senior attorneys engaged in these representations. 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 and any procedures set forth therein. The Nominating and Governance Committee met four (4) times during the fiscal year ended August 31, 2025.

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The Trust has an Investment Committee that is comprised of Messrs. Alvarado (Chair), Duffy and Zemsky, and Ms. McKenna. Mr. Lindgren, 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 purposes are: (a) to review the short- and long-term investment performance of the Manager and each of the designated sub-advisors to the Fund; (b) to review 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; (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; and (f) to assist the Board with the aspects of risk oversight of the Trust that are relevant to the Investment Committee, including, but not limited to counterparty, investment, liquidity and derivatives risks. The Investment Committee met four (4) times during the fiscal year ended August 31, 2025.

*Trustee Ownership in the Fund*

The following tables show the amount of equity securities owned in the Fund and all series of the American Beacon Funds Complex by the Trustees as of the calendar year ended December 31, 2024. Ms. Smith and Mr. Zemsky became Trustees on August 18, 2025.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** |
|  | **Duffy** |  |  |  |  |  |  |  |
| American Beacon DoubleLine Floating Rate Income Fund |  |  |  |  |  |  |  |  |
| **Aggregate Dollar Range of Equity** **Securities in all Trusts (** **30 Funds as of** **December 31, 2024)** | 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** | **NON-INTERESTED TRUSTEES** |
|  | **Alvarado** | **Armes** | **Arpey** | **Holz** | **Lindgren** | **McKenna** | **Smith** | **Zemsky** |
| American Beacon DoubleLine Floating Rate Income Fund |  |  |  |  |  |  |  |  |
| **Aggregate Dollar Range of Equity** **Securities in all Trusts (** **30 Funds as of** **December 31, 2024)** | 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 $150,000; (2) meeting attendance fee (for attendance in person or via electronic means) of (a) $12,000 for in-person attendance, or $5,000 for attendance by electronic means, 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 Board meeting held by electronic means; and (3) reimbursement of reasonable expenses incurred in attending Board meetings, Committee meetings, and relevant educational seminars. For this purpose, the Board considers attendance at regular meetings held by 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 his service as Board Chair, Mr. Lindgren receives an additional annual retainer of $50,000. Although he attends several committee meetings at each quarterly Board meeting, he receives a single $2,500 fee each quarter for his 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 August 31, 2025. | The following table shows total compensation (excluding reimbursements) paid by the Trusts to each Trustee for the fiscal year ended August 31, 2025. | The following table shows total compensation (excluding reimbursements) paid by the Trusts to each Trustee for the fiscal year ended August 31, 2025. |
| **Name of Trustee** | **Aggregate Compensation from the Trust** | **Total Compensation from the Trusts** |
| **INTERESTED TRUSTEE** |  |  |
| Eugene J. Duffy | $200731 | $217500 |
| **NON-INTERESTED TRUSTEES** |  |  |

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| **The following table shows total compensation (excluding reimbursements) paid by the Trusts to each Trustee for the fiscal year ended August 31, 2025.** | **The following table shows total compensation (excluding reimbursements) paid by the Trusts to each Trustee for the fiscal year ended August 31, 2025.** | **The following table shows total compensation (excluding reimbursements) paid by the Trusts to each Trustee for the fiscal year ended August 31, 2025.** |
| **Name of Trustee** | **Aggregate Compensation from the Trust** | **Total Compensation from the Trusts** |
| Gilbert G. Alvarado | $218036 | $236250 |
| Joseph B. Armes\* | $157816 | $171000 |
| Gerard J. Arpey | $211345 | $229000 |
| Brenda Cline\*\* | $58143 | $63000 |
| Claudia A. Holz | $223804 | $242500 |
| Douglas A. Lindgren | $243877 | $264250 |
| Barbara J. McKenna | $201654 | $218500 |
| Janet C. Smith\*\*\* | $47991 | $52000 |
| Paul Zemsky\*\*\* | $47991 | $52000 |

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\* Mr. Armes received compensation from the Trusts up to his retirement from the Board on June 5, 2025. Mr. Armes was not eligible for the benefits afforded to Eligible Trustees who served on the Board prior to September 12, 2008 as described below.

\*\* Ms. Cline received compensation from the Trusts up to her retirement from the Board on December 31, 2024. Upon her retirement from the Board, Ms. Cline became eligible for the benefits afforded to Eligible Trustees who served on the Boards prior to September 12, 2008, as described below.

\*\*\* Ms. Smith and Mr. Zemsky were not Trustees prior to August 18, 2025. Accordingly, the table reflects estimated compensation for Ms. Smith and Mr. Zemsky for the period August 18, 2025 – August 31, 2025.

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"). 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. None of the current Trustees are Eligible Trustees.

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, four individuals who retired from the Board and accrued retirement benefits for periods prior to September 12, 2008, have assumed Trustee Emeritus status. Three individuals and their spouses receive annual flight benefits of up to $40,000 combined, on a tax-grossed up basis, on American Airlines. One 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 and Year of** **Birth** | **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** |  |  |  |
| Gregory Stumm<br>(1981) | President<br>since June 2024<br> Vice President<br>2022-2024 | President<br>since June 2024<br> Vice President<br>2022-2024 | **American Beacon Advisors, Inc.:** Director (June 2024-Present), President (June 2024-Present), Chief Executive Officer (June 2024-Present), Senior Vice President (2022-2024) <br> **National Investment Services of America, LLC:** Director (2024-Present) <br> **Resolute Acquisition, Inc.:** Director (June 2024-Present), President (June 2024-Present), Chief Executive Officer (June 2024-Present), Senior Vice President (2022-2024) <br> **Resolute Topco, Inc.:** Director (June 2024-Present), President (June 2024-Present), Chief Executive Officer (June 2024-Present) <br> **Resolute Investment Managers, Inc.:** Director (June 2024-Present), President (June 2024-Present), Chief Executive Officer (June 2024 - Present), Senior Vice President (2022-2024) <br> **Resolute Investment Services, Inc.:** Director (June 2024-2025), President (June 2024-2025), Chief Executive Officer (June 2024-2025), Senior Vice President, (2022-2024) <br> **Resolute Investment Distributors, Inc.:** President (2024-Present), Chief Executive Officer (2024-Present), Director (2022-Present), Senior Vice President (2022-2024) <br> **RSW Investments Holdings LLC:** Director (2024-Present) <br> **Shapiro Capital Management, LLC:** Director (2024-Present) <br> **SSI Investment Management, LLC:** Director (2024-Present) |
| Sonia L. Bates<br>(1956) | Principal Accounting Officer and Treasurer<br>since 2021 | Principal Accounting Officer and Treasurer<br>since 2021 | **American Beacon Advisors, Inc.:** Assistant Treasurer (2023-Present)<br> **American Beacon Apollo Total Return Fund:** Assistant Treasurer (2019-2021), Principal Accounting Officer and Treasurer (2021)<br> **American Beacon Funds:** Assistant Treasurer (2011-2021)<br> **American Beacon Institutional Funds:** Trust Assistant Treasurer (2017-2021)<br> **American Beacon Cayman Managed Futures Strategy Fund, Ltd.:** Treasurer (2022-Present)<br> **American Beacon Cayman Multi-Alternatives Company, Ltd.:** Treasurer (2023-Present)<br> **American Beacon Cayman TargetRisk Company, Ltd.:** Treasurer (2022-Present) and Assistant Treasurer (2018-2022)<br> **American Beacon Cayman Trend Company, Ltd.:** Treasurer (2023-Present)<br> **American Beacon Select Funds**: Assistant Treasurer (2011-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Assistant Treasurer (2018-2021), Principal Accounting Officer and Treasurer (2021)<br> **American Private Equity Management, L.L.C.:** Assistant Treasurer (2012-2024)<br> **Resolute Investment Services, Inc:** Vice President, Fund and Tax Reporting (2023-2025), Director, Fund and Tax Reporting (2011-2023) |

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of** **Birth** | **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** |
| Rosemary K. Behan<br>(1959) | Vice President, Secretary and Chief Legal Officer<br>since 2006 | Vice President, Secretary and Chief Legal Officer<br>since 2017 | **Alpha Quant Advisors, LLC:** Secretary and General Counsel (2016-2020)<br> **American Beacon Advisors, Inc.:** Senior Vice President (2021-Present), Vice President (2006-2021), Secretary and General Counsel (2006-Present)<br> **American Beacon Apollo Total Return Fund:** Vice President, Secretary, and Chief Legal Officer (2018-2021)<br> **American Beacon Cayman Managed Futures Strategy Fund, Ltd.:** Secretary (2014-Present)<br> **American Beacon Cayman Multi-Alternatives Company, Ltd.:** Secretary (2023-Present) <br> **American Beacon Cayman TargetRisk Company, Ltd:** Secretary (2018-Present)<br> **American Beacon Cayman Trend Company, Ltd.:** Secretary (2023-Present)<br> **American Beacon Sound Point Enhanced Income Fund:** Vice President, Secretary, and Chief Legal Officer (2018-2021)<br> **American Private Equity Management, LLC:** Secretary (2008-2024)<br> **Continuous Capital, LLC:** Vice President and Secretary (2018-2022)<br> **Green Harvest Asset Management, LLC:** Secretary (2019-2021)<br> **Resolute Acquisition, Inc.:** Secretary (2015-Present)<br> **Resolute Investment Distributors, Inc.:** Secretary (2017-Present) <br> **Resolute Investment Holdings, LLC:** Secretary (2015-2025)<br> **Resolute Investment Managers, Inc.:** Senior Vice President (2021-Present), Vice President (2015-2021), Secretary and General Counsel (2015-Present)<br> **Resolute Investment Services, Inc.:** Senior Vice President (2021-2025), Vice President (2017-2025), Secretary and General Counsel (2017-2025)<br> **Resolute Topco, Inc.:** Secretary (2015-Present) |
| Paul B. Cavazos<br>(1969) | Vice President<br>since 2016 | Vice President<br>since 2017 | **American Beacon Advisors, Inc.:** Chief Investment Officer and Senior Vice President (2016-Present)<br> **American Beacon Apollo Total Return Fund:** Vice President (2018-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Vice President (2018-2021)<br> **American Private Equity Management, L.L.C.:** Vice President (2017-2024) |
| Rebecca L. Harris<br>(1966) | Vice President<br>2022-May 2024, June 2024-Present<br> President<br>May 2024-June 2024<br> Assistant Secretary<br>2010-2022 | Vice President<br>2022-2024, June 2024-Present<br> President<br>May 2024-June 2024<br> Assistant Secretary<br>2017-2022 | **Alpha Quant Advisors, LLC.:** Vice President (2016-2020)<br> **American Beacon Advisors, Inc.:** Chief Operating Officer (June 2024-Present), Senior Vice President (2021-May 2024, June 2024-Present), Director (May-June 2024), President (May-June 2024), Chief Executive Officer (May-June 2024), Vice President (2011-2021)<br> **American Beacon Apollo Total Return Fund:** Assistant Secretary (2018-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Assistant Secretary (2018-2021)<br> **Continuous Capital, LLC:** Vice President (2018-2022), Director (2022)<br> **National Investment Services of America, LLC:** Director (2022-Present)<br> **Resolute Acquisition, Inc.:** Senior Vice President (January 2024-May 2024, June 2024-Present), Director (May 2024-June 2024), President May 2024-June 2024), Chief Executive Officer (May 2024-June 2024)<br> **Resolute Investment Managers, Inc.:** Chief Operating Officer (June 2024-Present), Senior Vice President (2021-May 2024, June 2024-Present), Director (May-June 2024), President (May-June 2024), Chief Executive Officer (May-June 2024), Vice President (2017-2021)<br> **Resolute Investment Services, Inc.:** Senior Vice President (2021-May 2024, June 2024-2025), Director (May-June 2024), President (May-June 2024), Chief Executive Officer (May-June 2024), Vice President (2017-2021) <br> **Resolute Topco, Inc.:** Senior Vice President (January 2024-May 2024, June 2024-Present), Director (May 2024-June 2024), President (May 2024-June 2024), Chief Executive Officer (May 2024-June 2024)<br> **RSW Investments Holdings LLC:** Director (2022-Present)<br> **Shapiro Capital Management LLC:** Director (2022-Present)<br> **SSI Investment Management LLC:** Director (2022-Present) |

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of** **Birth** | **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** |
| Melinda G. Heika<br>(1961) | Vice President<br>since 2021 | Vice President<br>since 2021 | **Alpha Quant Advisors, LLC:** Treasurer and CFO (2016-2020)<br> **American Beacon Advisors, Inc.:** Senior Vice President (2021-Present), Treasurer and CFO (2010-Present)<br> **American Beacon Apollo Total Return Fund:** Principal Accounting Officer and Treasurer (2018-2021), Vice President (2021)<br> **American Beacon Cayman Managed Futures Strategy Fund, Ltd.:** Director (2014-Present), Vice President (2022-Present) and Treasurer (2014-2022), <br> **American Beacon Cayman Multi-Alternatives Company, Ltd.:** Director and Vice President (2023-Present)<br> **American Beacon Cayman TargetRisk Company, Ltd.:** Director and Vice President (2022-Present), and Treasurer (2018-2022)<br> **American Beacon Cayman Trend Company, Ltd.:** Director and Vice President (2023-Present)<br> **American Beacon Funds:** Principal Accounting Officer and Treasurer (2010-2021)<br> **American Beacon Institutional Funds Trust:** Principal Accounting Officer and Treasurer (2017-2021)<br> **American Beacon Select Funds:** Principal Accounting Officer and Treasurer (2010-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Principal Accounting Officer and Treasurer (2018-2021), Vice President (2021)<br> **American Private Equity Management, L.L.C.:** Treasurer (2012-2024)<br> **Continuous Capital, LLC:** Treasurer (2018-2022) <br> **Resolute Acquisition, Inc.:** Treasurer (2015-Present)<br> **Resolute Investment Holdings, LLC:** Treasurer (2015-2025)<br> **Resolute Investment Managers, Inc.:** Senior Vice President (2021-Present), Treasurer and CFO (2017-Present)<br> **Resolute Investment Services, Inc.:** Senior Vice President (2021-2025), Treasurer and CFO (2017-2025)<br> **Resolute Topco, Inc.:** Treasurer (2015-Present) |
| Terri L. McKinney<br>(1963) | Vice President<br>since 2010 | Vice President<br>since 2017 | **Alpha Quant Advisors, LLC:** Vice President (2016-2020)<br> **American Beacon Advisors, Inc.:** Senior Vice President, (2021-Present) Vice President, (2009-2021)<br> **American Beacon Apollo Total Return Fund:** Vice President (2018-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Vice President (2018-2021)<br> **Continuous Capital, LLC**: Vice President (2018-2022)<br> **Resolute Investment Managers, Inc.:** Senior Vice President (2021-Present), Vice President (2017-2021) <br> **Resolute Investment Services, Inc.:** Senior Vice President (2021-2025), Vice President (2018-2025)<br> **Resolute Investment Distributors, Inc.:** Director (2024-Present), Vice President (2024-Present) |
| Samuel J. Silver<br>(1963) | Vice President<br>since 2011 | Vice President<br>since 2017 | **American Beacon Advisors, Inc.:** Vice President (2011-Present), Chief Fixed Income Officer (2016-Present)<br> **American Beacon Apollo Total Return Fund:** Vice President (2018-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Vice President (2018-2021)  |

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of** **Birth** | **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>(1971) | Chief Compliance Officer<br>since 2004<br>Assistant Secretary<br>since 1999 | Chief Compliance Officer and Assistant Secretary<br>since 2017 | **Alpha Quant Advisors, LLC:** Chief Compliance Officer (2016-2019), Vice President (2016-2020)<br> **American Beacon Advisors, Inc.:** Chief Compliance Officer (2004-Present), Vice President (2019-Present)<br> **American Beacon Apollo Total Return Fund:** Chief Compliance Officer and Assistant Secretary (2018-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Chief Compliance Officer and Assistant Secretary (2018-2021)<br> **American Private Equity Management, LLC:** Chief Compliance Officer (2012-2024)<br> **Continuous Capital, LLC.:** Chief Compliance Officer (2018-2019), Vice President (2018-2022)<br> **Green Harvest Asset Management, LLC:** Chief Compliance Officer (2019-2021)<br> **Resolute Investment Distributors, Inc.:** Vice President (2017-Present)<br> **Resolute Investment Managers, Inc.:** Vice President (2017-Present)<br> **Resolute Investment Services, Inc.:** Vice President (2019-2025)<br> **RSW Investments Holdings, LLC:** Chief Compliance Officer (2019-Present)<br> **Shapiro Capital Management LLC**: Chief Compliance Officer (2024-Present) |
| Shelley D. Abrahams<br>(1974) | Assistant Secretary<br>since 2008 | Assistant Secretary<br>since 2017 | **American Beacon Advisors, Inc.:** Assistant Secretary (April 2024-Present)<br> **American Beacon Apollo Total Return Fund:** Assistant Secretary (2018-2021)<br> **American Beacon Cayman Managed Futures Strategy Fund, Ltd.:** Assistant Secretary (2022-Present)<br> **American Beacon Cayman Multi-Alternatives Company, Ltd.:** Assistant Secretary (2023-Present) <br> **American Beacon Cayman TargetRisk Company, Ltd:** Assistant Secretary (2022-Present)<br> **American Beacon Cayman Trend Company, Ltd.:** Assistant Secretary (2023-Present) <br> **American Beacon Sound Point Enhanced Income Fund:** Assistant Secretary (2018-2021) <br> **Resolute Investment Managers, Inc.:** Assistant Secretary (April 2024-Present)<br> **Resolute Investment Services, Inc.:** Corporate Governance Manager (2023-2025), Assistant Secretary (2024-2025), Senior Corporate Governance & Regulatory Specialist (2020-2023), Corporate Governance & Regulatory Specialist (2017-2020) |
| Shelley L. Dyson<br>(1969) | Assistant Treasurer<br>since 2021 | Assistant Treasurer<br>since 2021 | **American Beacon Apollo Total Return Fund:** Assistant Treasurer (2021)<br> **American Beacon Cayman Managed Futures Strategy Fund, Ltd.:** Assistant Treasurer (2022-Present)<br> **American Beacon Cayman Multi-Alternatives Company, Ltd.:** Assistant Treasurer (2023-Present) <br> **American Beacon Cayman TargetRisk Company, Ltd:** Assistant Treasurer (2022-Present) <br> **American Beacon Cayman Trend Company, Ltd.:** Assistant Treasurer (2023-Present)<br> **American Beacon Sound Point Enhanced Income Fund:** Assistant Treasurer (2021)<br> **Resolute Investment Services, Inc.:** Fund Tax Director (2024-2025), Fund Tax Manager (2020-2024), Manager, Tax (2014-2020) |
| Teresa A. Oxford<br>(1958) | Assistant Secretary<br>since 2015 | Assistant Secretary<br>since 2017 | **Alpha Quant Advisors, LLC:** Assistant Secretary (2016-2020)<br> **American Beacon Advisors, Inc.:** Deputy General Counsel (2024-Present), Assistant Secretary (2015-Present), Associate General Counsel (2015-2024)<br> **American Beacon Apollo Total Return Fund:** Assistant Secretary (2018-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Assistant Secretary (2018-2021)<br> **Continuous Capital, LLC.:** Assistant Secretary (2020-2022) <br> **Resolute Investment Distributors, Inc.:** Assistant Secretary (2018-2021), (2024-Present)<br> **Resolute Investment Managers, Inc.:** Deputy General Counsel (2024-Present), Assistant Secretary (2017-Present), Associate General Counsel (2017-2024)<br> **Resolute Investment Services, Inc:** Deputy General Counsel (2024-2025), Assistant Secretary (2018-2025), Associate General Counsel (2018-2024) |

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**CODE OF ETHICS**

The Manager, the Trust, the Distributor, and the sub-advisor 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.

**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-advisor with respect to the Fund's assets under the sub-advisor's management. The Trust has adopted a Proxy Policy that governs proxy voting by the Manager and sub-advisor, including procedures to address potential conflicts of interest between the Fund's shareholders and the Manager, the sub-advisor 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 Proxy Policy. The sub-advisor's 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 will be available as of August 31 of each year without charge on the Fund's website, on the SEC's website at http://www.sec.gov or upon request by calling 1-800-967-9009. 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 August 31, 2025. The Trustees and officers of the Trusts, as a group, owned less than 1% of all classes of the Fund's shares outstanding as of that date.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Shareholder Address** | **Fund Percentage (listed if over 25%)** | **A CLASS** | **C CLASS** | **Y CLASS** | **R5 CLASS** | **Investor CLASS** |
| CHARLES SCHWAB & CO INC\*<br> SPECIAL CUST A/C<br> EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN MUTUAL FUNDS<br> 211 MAIN ST<br> SAN FRANCISCO CA 94105-1901 |  | 13.85% | 18.06% | 18.78% | 28.61% | 24.24% |
| LPL FINANCIAL\*<br> 4707 EXECUTIVE DR<br> SAN DIEGO CA 92121-3091 |  | 7.74% | 13.40% | 7.28% | 6.94% |  |
| MORGAN STANLEY SMITH BARNEY LLC\*<br> FOR THE EXCLUSIVE BENE OF ITS CUST<br> 1 NEW YORK PLZ FL 12<br> NEW YORK NY 10004-1965 |  | 35.18% |  | 6.50% |  |  |
| NATIONAL FINANCIAL SERVICES LLC\*<br> FOR EXCLUSIVE BENEFIT OF OUR<br> CUSTOMERS<br> ATTN MUTUAL FUNDS DEPT 4TH FLOOR<br> 499 WASHINGTON BLVD<br> JERSEY CITY NJ 07310-1995 |  | 5.25% |  | 7.11% | 8.89% | 62.01% |
| PERSHING LLC\*<br> 1 PERSHING PLZ<br> JERSEY CITY NJ 07399-0001 |  | 10.90% | 38.17% | 6.13% |  |  |
| RAYMOND JAMES\*<br> OMNIBUS FOR MUTUAL FUNDS<br> ATTN MUTUAL FUND RECONCILIATION 14G<br> 880 CARILLON PKWY<br> ST PETERSBURG FL 33716-1100 |  | 15.07% | 19.18% | 23.24% | 5.24% |  |
| UBS WM USA\*<br> OMNI ACCOUNT M/F<br> SPEC CDY A/C EBOC UBSFSI<br> 1000 HARBOR BLVD<br> WEEHAWKEN NJ 07086-6761 |  | 8.74% |  | 24.08% |  |  |
| VANGUARD BROKERAGE SERVICES\*<br> 100 VANGUARD BLVD<br> MALVERN PA 19355-2331 |  |  |  |  |  | 6.09% |
| ASCENSUS TRUST COMPANY FBO<br> THE LAW FORUM LLC 689680<br> P.O. BOX 10758<br> FARGO ND 58106-0758 |  |  |  |  | 6.75% |  |
| SEI PRIVATE TRUST COMPANY<br> C/O FTCI<br> 1 FREEDOM VALLEY DRIVE<br> OAKS PA 19456-9989 |  |  |  |  | 38.42% |  |

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\* Denotes record owner of Fund shares only

**INVESTMENT ADVISORY AGREEMENT**

The Fund's sub-advisor is listed below with information regarding its 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-advisor may be considered affiliates of the Fund.

DoubleLine Capital LP ("DoubleLine Capital"), 2002 N. Tampa Street, Suite 200, Tampa, FL 33602, is a registered investment advisor and serves as the Sub-Advisor to the Fund. DoubleLine Capital was organized in 2009 as a Delaware limited liability company and was converted into a Delaware limited partnership on December 23, 2009. As of May 31, 2025, DoubleLine Capital had approximately $89.7 billion in assets under management.

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| | | |
|:---|:---|:---|
| **DoubleLine Capital LP ("DoubleLine Capital")** | **DoubleLine Capital LP ("DoubleLine Capital")** | **DoubleLine Capital LP ("DoubleLine Capital")** |
| **Controlling Person/Entity** | **Basis of Control** | **Nature of Controlling Person/Entity's Business** |
| DoubleLine Management LP | Limited Partner  | Financial Services |
| DoubleLine Capital GP LLC | General Partner of DoubleLine Management LP | Financial Services |
| Jeffrey Edward Gundlach | Greater than 25% Ownership of DoubleLine Management LP | Financial Services |

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The Trust, on behalf of the American Beacon DoubleLine Floating Rate Income Fund, and the Manager have entered into an Investment Advisory Agreement with DoubleLine Capital pursuant to which the Fund has agreed to pay DoubleLine Capital an annualized sub-advisory fee that is calculated and accrued daily based on the Fund's average daily net assets equal to 0.40% on the first $170 million, and 0.35% thereafter.

**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., a wholly-owned subsidiary of Resolute Topco, Inc. ("Topco"). Topco is owned primarily by various institutional investment funds that are managed by financial institutions and other investment advisory firms. No owner of Topco owns 25% or more of the outstanding equity or voting interests of Topco. The address of Topco is 220 East Las Colinas Boulevard, Suite 1200, Irving, TX 75039.

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 Topco, Inc. | Ultimate Parent Company | Holding Company – Founded in 2015 |

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The Manager is paid a management fee as compensation for providing the Fund with management and administrative services. The expenses are allocated daily to each class of shares of the Fund based upon the relative proportion of net assets represented by such class. Prior to June 21, 2025, the Manager was paid a management fee pursuant to the prior schedule adopted for the Fund, which was 0.35% on the first $5 billion, 0.325% on the next $5 billion, 0.30% on the next $10 billion, and 0.275% on amounts over $20 billion. Currently, the Management Agreement provides for the Manager to receive an annualized management fee based on a percentage of the Fund's average daily net assets that is calculated and accrued according to the schedule set forth below, for so long as DoubleLine Capital remains a sub-advisor to the Fund.

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| | |
|:---|:---|
| First $170 million | 0.250% |
| $170 million to $2 billion | 0.300% |
| $2 billion to $5 billion | 0.250% |
| $5 billion to $10 billion | 0.225% |
| $10 billion to $20 billion | 0.200% |
| Over $20 billion | 0.175% |

---

The Management Agreement further provides that, effective as of the Closing Date of the Reorganization, for such time as DoubleLine Capital LP serves as the sub-advisor to the Acquiring Floating Rate Income Fund, with respect to the assets managed by DoubleLine, the Fund shall pay the Manager an annualized management fee based on the following fee schedule:

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| | |
|:---|:---|
| First $170 million | 0.10% |
| Over $170 million | 0.15% |

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If DoubleLine were to be terminated as sub-advisor to the Fund, the fee schedule that was in place prior to June 21, 2025 be implemented.

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;

• 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 Funds' interfund lending facility and lines of credit, if applicable.

In addition to its oversight of the sub-advisor, the Manager may invest the portion of the Fund's assets that the sub-advisor determines to be allocated to short-term investments.<br>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 prospectuses 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 the sub-advisor to the investment style of the Fund; fees paid for brokerage commission analysis for the purpose of monitoring best execution practices of the sub-advisor; 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

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expenses of the Fund to maintain the contractual expense ratio caps for each applicable class of shares 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 the prior sub-advisor(s) based on the Fund's average daily net assets for the Fund's three most recent fiscal years ended August 31. The following tables also show the management fees waived or recouped by the Manager and the sub-advisory fees waived by the Sub-Advisor, if applicable. In the tables below, the fees paid to the Manager and the Sub-Advisor are expressed 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)** | **Management Fees Paid to American Beacon Advisors, Inc. (Gross)** | **Management Fees Paid to American Beacon Advisors, Inc. (Gross)** | **Management Fees Paid to American Beacon Advisors, Inc. (Gross)** |
|  | **2022** | **2023** | **2024** |
| American Beacon DoubleLine Floating Rate Income Fund | $2267948 | $1097226 | $645843 |

---

\* Management Fees reflect the fees paid to the Manager pursuant to the schedule in place prior to June 21, 2025. If DoubleLine were to be terminated as sub-advisor to the Fund, the prior fee schedule be implemented.

---

| | | | |
|:---|:---|:---|:---|
| **Sub-Advisor Fees (Gross)** | **Sub-Advisor Fees (Gross)** | **Sub-Advisor Fees (Gross)** | **Sub-Advisor Fees (Gross)** |
|  | **2022** | **2023** | **2024** |
| American Beacon DoubleLine Floating Rate Income Fund\* | $2267730 | $1029764 | $535845 |
|  | 0.35% | 0.30% | 0.30% |

---

\* Sub-Advisor Fees reflects fees paid to Sound Point Capital Management, LP ("Sound Point"), formerly a sub-advisor of the Fund, through December 30, 2022. On December 31, 2022, FEAC replaced Sound Point as sub-advisor to the Fund.

---

| | | | |
|:---|:---|:---|:---|
| **Management Fees (Waived)/Recouped** | **Management Fees (Waived)/Recouped** | **Management Fees (Waived)/Recouped** | **Management Fees (Waived)/Recouped** |
|  | **2022** | **2023** | **2024** |
| American Beacon DoubleLine Floating Rate Income Fund | $0 | $(203698) | $(85150) |

---

---

| | | | |
|:---|:---|:---|:---|
| **Sub-Advisor Fees (Waived)** | **Sub-Advisor Fees (Waived)** | **Sub-Advisor Fees (Waived)** | **Sub-Advisor Fees (Waived)** |
|  | **2022** | **2023** | **2024** |
| American Beacon DoubleLine Floating Rate Income Fund\* | $(233349) | $(51914) | $0 |

---

\* Sub-Advisor Fees (Waived) reflects fees waived by Sound Point, formerly a sub-advisor of the Fund, for the Fund's fiscal year ended August 31, 2022, and through December 30, 2022. On December 30, 2022, Sound Point was terminated as sub-advisor to the Fund and on December 31, 2022, FEAC was appointed as sub-advisor to the Fund.

**Distribution Fees**

The Manager (or another entity approved by the Board) under a distribution plan adopted pursuant to Rule 12b-1 under the Investment Company Act, is paid up to 0.25% per annum of the average daily net assets of the A Class shares and up to 1.00% per annum of the average daily net assets of the C Class shares of the Fund for distribution and shareholder servicing related services, including expenses relating to selling efforts of various broker-dealers, shareholder servicing fees and the preparation and distribution of A Class and C Class shares advertising material and sales literature. The Manager will receive Rule 12b-1 fees from the A Class and C Class shares regardless of the amount of the Manager's actual expenses related to distribution and shareholder servicing efforts on behalf of each Class. Thus, the Manager may realize a profit or a loss based upon its actual distribution and shareholder servicing related expenditures for the A Class and C Class shares. The Manager anticipates that the Rule 12b-1 plan will benefit shareholders by providing broader access to the Fund through broker-dealers and other financial intermediaries who require compensation for their expenses in order to offer shares of the Fund. The Board has not authorized Y Class, R5 Class, or Investor Class shares of the Fund to pay any fees pursuant to a distribution plan. Distribution fees pursuant to Rule 12b-1 under the Investment Company Act for the fiscal year ended August 31, 2024 were:

---

| | |
|:---|:---|
| **Distribution Fees** |  |
| A Class | $35459 |
| C Class | $114165 |

---

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Certain sub-advisors of the Fund or other series of the American Beacon Funds contribute to the Manager to support the American Beacon Funds' distribution activities.

**Service Plan Fees**

The A Class, C Class, and Investor Class have each adopted a Service Plan (collectively, the "Service Plans"). The Service Plans authorize the payment to the Manager (or another entity approved by the Board) of up to 0.375% per annum of the average daily net assets of the Investor Class shares, up to 0.25% per annum of the average daily net assets of the A Class shares and up to 0.25% per annum of the average daily net assets of the C Class shares. In addition, the Fund may reimburse the Manager for certain non-distribution shareholder services provided by financial intermediaries attributable to Y Class and R5 Class shares. The Manager or other approved entities may spend such amounts on any activities or expenses primarily intended to result in or relate to the servicing of A Class, C Class, Y Class, R5 Class, and Investor Class shares including, but not limited to, payment of shareholder service fees and transfer agency or sub-transfer agency expenses. The fees, which are included as part of the Fund's "Other Expenses" in the Table of Fees and Expenses in the Prospectus, will be payable monthly in arrears. The primary non-distribution shareholder fees paid to financial intermediaries, such as plan sponsors and broker-dealers, generally include shareholder servicing, record keeping and servicing fees. Service Plan fees paid by the A Class, C Class, and Investor Class shares of the Fund pursuant to the applicable Service Plan for the three most recent fiscal years ended August 31 are set forth below.

---

| | | | |
|:---|:---|:---|:---|
|  | **2022** | **2023** | **2024** |
| A Class | $16502 | $12334 | $10754 |
| C Class | $15088 | $11534 | $8122 |
| Investor Class | $189684 | $84474 | $74369 |

---

**Securities Lending Fees**<br>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 investment income (the income earned in the form of interest, dividends and realized capital gains from the investment of cash collateral, plus any negative rebate fees paid by borrowers, less the rebate amount paid to borrowers as well as related expenses) and, with respect to collateral other than cash, a fee up to 10% of loan fees and demand premiums paid by borrowers.

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.

As of the date of this SAI, the Fund does not intend to engage in securities lending activities.

The Manager has not received any fees from securities lending activities of the Fund within the last three fiscal years.

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.

**The Distributor**

Resolute Investment Distributors, Inc. ("RID" or "Distributor") is the Fund's distributor and principal underwriter of the Fund's shares.

RID, located at 220 East Las Colinas Blvd., Suite 1200, Irving, Texas 75039, is a registered broker-dealer and is a member of FINRA. The Distributor is affiliated with the Manager through common ownership. Under a Distribution Agreement with the Trust, the Distributor acts as the distributor and principal underwriter of the Trust in connection with the continuous offering of shares of the Fund. The Distributor continually distributes shares of the Fund on a best efforts basis. The Distributor has no obligation to sell any specific quantity of the Fund's shares. Pursuant to the Distribution Agreement, to the extent applicable, the Distributor receives, and may re-allow to broker-dealers, all or a portion of the sales charge paid by the purchasers of A Class and C Class shares. For A Class and C Class shares, the Distributor receives commission revenue consisting of the portion of the A Class and C Class sales charge remaining after the allowances by the Distributor to the broker-dealers. The Distributor retains any portion of the commission fees that are not paid to the broker-dealers for use solely to pay distribution related expenses.

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The aggregate sales charges paid to, or retained by, the Distributor from the sale of shares and the CDSC retained by the Distributor on the redemption of shares during the three most recent fiscal years ended August 31 are shown in the table below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **American Beacon Fund** |  | **Sales Charge Revenue** | **Sales Charge Revenue** | **Deferred Sales Charge Revenue** | **Deferred Sales Charge Revenue** |
|  | **Fiscal Year** | **Amount Paid to** **Distributor** | **Amount Retained by** **Distributor** | **Amount Paid to** **Distributor** | **Amount Retained by** **Distributor** |
| American Beacon DoubleLine Floating Rate Income Fund | 2024 | $7256 | $1572 | $0 | $0 |
|  | 2023 | $1375 | $294 | $330 | $0 |
|  | 2022 | $22512  | $3869  | $4426  | $0 |

---

RID does not receive compensation on redemptions and repurchases, brokerage commissions, or other compensation. However, as shown in a separate chart, RID may receive distribution fees (i.e., Rule 12b-1 fees) from certain share classes of the Fund.

**OTHER SERVICE PROVIDERS**

State Street, located at One Congress Street, Suite 1, Boston, Massachusetts 02114-2016, serves as custodian ("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 the sub-advisor and is set forth below. The number of accounts and assets is shown as of August 31, 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Number of Other Accounts Managed** <br>**and Assets by Account Type** | **Number of Other Accounts Managed** <br>**and Assets by Account Type** | **Number of Other Accounts Managed** <br>**and Assets by Account Type** | **Number of Accounts and Assets for Which** <br>**Advisory Fee is Performance-Based** | **Number of Accounts and Assets for Which** <br>**Advisory Fee is Performance-Based** | **Number of Accounts and Assets for Which** <br>**Advisory Fee is Performance-Based** |
| **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** |
| DoubleLine Capital LP | DoubleLine Capital LP |  |  |  |  |  |
| Robert Cohen | 5 ($8.32 bil) | 9 ($1.95 bil) | 2 ($0.62 bil) |  | 9 ($1.95 bil) |  |
| Philip Kenney | 1 ($0.17 bil) |  |  |  |  |  |

---

\* Includes the Target Fund.

**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 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 Sub-Advisor as of August 31, 2025.

From time to time, potential and actual conflicts of interest may arise between a Portfolio Manager's management of the Fund, on the one hand, and the management of other accounts, on the other. Potential and actual conflicts of interest also may result because of DoubleLine Capital's other business activities. Other accounts managed by a Portfolio Manager might have similar

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investment objectives or strategies as the Fund, be managed (benchmarked) against the same index the Fund tracks, or otherwise hold, purchase, or sell securities that are eligible to be held, purchased or sold by the Fund. The other accounts might also have different investment objectives or strategies than the Fund.

**Knowledge and Timing of Fund Trades.** A potential conflict of interest may arise as a result of the Portfolio Manager's management of the Fund. Because of their positions with the Fund, the Portfolio Managers know the size, timing and possible market impact of the Fund's trades. It is theoretically possible that a Portfolio Manager could use this information to the advantage of other accounts under management, and also theoretically possible that actions could be taken (or not taken) for the Fund.

**Investment Opportunities.** A potential conflict of interest may arise as a result of the Portfolio Manager's management of a number of accounts with varying investment guidelines. Often, an investment opportunity may be suitable for the Fund and other accounts managed by the Portfolio Manager, but securities may not be available in sufficient quantities for both the Fund and the other accounts to participate fully. Similarly, there may be limited opportunity to sell an investment held by the Fund and another account. DoubleLine Capital has adopted policies and procedures reasonably designed to allocate investment opportunities on a fair and equitable basis over time.

Under DoubleLine Capital's allocation procedures, investment opportunities are allocated among various investment strategies based on individual account investment guidelines, DoubleLine Capital's investment outlook, cash availability and a series of other factors. DoubleLine Capital has also adopted additional internal practices to complement the general trade allocation policy that are designed to address potential conflicts of interest due to the side-by-side management of the Fund and certain pooled investment vehicles, including investment opportunity allocation issues.

**Broad and Wide-Ranging Activities.** The Portfolio Managers, DoubleLine Capital and its affiliates engage in a broad spectrum of activities. In the ordinary course of their business activities, the Portfolio Managers, DoubleLine Capital and its affiliates may engage in activities where the interests of certain divisions of DoubleLine Capital and its affiliates or the interests of their clients may conflict with the interests of the shareholders of the Fund.

**Possible Future Activities.** DoubleLine Capital and its affiliates may expand the range of services that it provides over time. Except as provided herein, DoubleLine Capital and its affiliates will not be restricted in the scope of its business or in the performance of any such services (whether now offered or undertaken in the future) even if such activities could give rise to conflicts of interest, and whether or not such conflicts are described herein.

DoubleLine Capital and its affiliates have, and will continue to develop, relationships with a significant number of companies, financial sponsors and their senior managers, including relationships with clients who may hold or may have held investments similar to those intended to be made by the Fund. These clients may themselves represent appropriate investment opportunities for the Fund or may compete with the Fund for investment opportunities.

**Performance Fees and Personal Investments.** A Portfolio Manager may advise certain accounts with respect to which the advisory fee is based entirely or partially on performance or in respect of which the Portfolio Manager may have made a significant personal investment. Such circumstances may create a conflict of interest for the Portfolio Manager in that the Portfolio Manager may have an incentive to allocate the investment opportunities that he or she believes might be the most profitable to such other accounts instead of allocating them to the Fund. DoubleLine Capital has adopted policies and procedures reasonably designed to allocate investment opportunities between the Fund and performance fee based accounts on a fair and equitable basis over time.

**Compensation** 

The following is a description provided by the investment sub-advisor regarding the structure of and criteria for determining the compensation of the Portfolio Managers as of August 31, 2025.

The overall objective of the compensation program for DoubleLine Capital is intended to attract competent and expert investment professionals and to retain them over the long-term. Compensation is comprised of several components which, in the aggregate, are designed to achieve these objectives and to reward each employee for his or her contributions to the success of DoubleLine Capital's clients and DoubleLine Capital. Employees are generally compensated through a combination of base salary, discretionary bonus and, in some cases, equity participation in DoubleLine Capital.

**Salary**. Salary is agreed to with employees at time of employment and is reviewed from time to time. It does not change significantly year over year and often does not constitute a significant part of an employee's compensation.

**Discretionary Bonus/Guaranteed Minimums**. Employees receive discretionary bonuses. However, in some cases, pursuant to contractual arrangements, some employees may be entitled to a mandatory minimum bonus if the sum of their salary and profit sharing does not reach certain levels.

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**Equity** **Incentives**. Some employees participate in equity incentives based on overall firm performance of one or more of the DoubleLine group of companies, or through direct ownership interests in one or more of the DoubleLine group of companies or participation in stock option or stock appreciation plans of DoubleLine Capital. These ownership interests or participation interests provide eligible employees the opportunity to participate in the financial performance of DoubleLine Capital. Participation is generally determined in the discretion of management of DoubleLine Capital, taking into account factors relevant to the employee's contribution to the success of DoubleLine Capital.

**Other Plans and Compensation** **Vehicles**. Employees may elect to participate in the company's 401(k) plan, to which they may contribute a portion of their pre- and post-tax compensation to the plan for investment on a tax-deferred basis. DoubleLine Capital may also choose, from time to time, to offer certain other compensation plans and vehicles, such as a deferred compensation plan, to employees.

**Summary**. As described above, an employee's total compensation is determined through a subjective process that evaluates numerous quantitative and qualitative factors, including the contributions made to the overall investment process. Not all factors apply to each employee and there is no particular weighting or formula for considering certain factors. Among the factors considered are: relative investment performance of portfolios (although there are no specific benchmarks or periods of time used in measuring performance); complexity of investment strategies; participation in the investment team's dialogue; contribution to business results and overall business strategy; success of marketing/business development efforts and client servicing; seniority/length of service with the firm; management and supervisory responsibilities; and fulfillment of DoubleLine Capital's leadership criteria.

**Ownership of the Fund**

The Portfolio Managers' beneficial ownership of the Fund is defined as the Portfolio Managers 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 Managers' immediate family or by a trust of which the Portfolio Managers are a trustee could be considered ownership by the Portfolio Managers. The table below sets forth the Portfolio Managers' beneficial ownership of the Fund as of August 31, 2025 as provided by the Fund's sub-advisor.

---

| | |
|:---|:---|
| **Name of Investment Advisor and Portfolio Managers** | **American Beacon DoubleLine Floating Rate** **Income Fund** |
| **DoubleLine Capital LP** |  |
| Robert Cohen | None |
| Philip Kenney | None |

---

**PORTFOLIO SECURITIES TRANSACTIONS**

In selecting brokers or dealers to execute particular transactions, the Manager and the sub-advisor 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-advisor (or their affiliates), provided, however, that the Manager or the sub-advisor 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-advisor 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-advisor 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-advisor, 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-advisor exercises investment discretion. The fees of the sub-advisor 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-advisor (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-advisor, as applicable, to benefit their other accounts under management.

The Manager and the sub-advisor will place their own orders to execute securities transactions that are designed to implement the Fund's investment objective and policies. In placing such orders, the 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, the 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

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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 Agreement provides, in substance, that in executing portfolio transactions and selecting brokers or dealers, the principal objective of the sub-advisor is to seek best execution. In assessing available execution venues, the 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 the 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 participation in the commission recapture program is directed exclusively to the Fund. Neither the Manager nor the sub-advisor receives any benefits from the commission recapture program. The sub-advisor's participation in the brokerage commission recapture program is optional. The 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.

**Commission Recapture**

For the fiscal year ended August 31, 2025, the Fund received the amounts shown as a result of participation in the commission recapture program:

---

| | |
|:---|:---|
| **American Beacon Fund** | **Amount Received** |
| American Beacon DoubleLine Floating Rate Income Fund | $0 |

---

**Affiliated Broker Commissions**

For the three most recent fiscal years ended August 31, no brokerage commissions were paid to affiliated brokers by the Fund.

**Brokerage Commissions**

For the three most recent fiscal years ended August 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.

---

| | | | |
|:---|:---|:---|:---|
| **American Beacon Fund** | 2022 | **2023** | **2024** |
| American Beacon DoubleLine Floating Rate Income Fund | $0 | $0 | $10046 |

---

**Soft Dollars**

For the fiscal year ended August 31, 2025, the Fund did not direct any transactions to brokers for research services.

**Securities Issued by Top 10 Brokers**

For the fiscal year ended August 31, 2025, the Fund did not hold securities issued by a broker-dealer (or by its parent) that was one of the top ten brokers or dealers through which the Fund executed transactions or sold shares.

**ADDITIONAL PURCHASE AND SALE INFORMATION FOR A CLASS SHARES**

**<u>Sales Charge Reductions and Waivers</u>**

As described in the Prospectus, there are various ways to reduce your sales charge when purchasing A Class shares. Additional information about A Class sales charge reductions is provided below.

<u>LOI</u>. The LOI may be revised upward at any time during the 13-month period of the LOI ("LOI Period"), and such a revision will be treated as a new LOI, except that the LOI Period during which the purchases must be made will remain unchanged. Purchases made from the date of revision will receive the reduced sales charge, if any, resulting from the revised LOI. The LOI will be considered completed if the shareholder dies within the 13-month LOI Period. Commissions to dealers will not be adjusted or paid on the difference between the LOI amount and the amount invested before the shareholder's death.

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All dividends and other distributions on shares held in escrow will be credited to the shareholder's account in shares (or paid in cash, if requested). If the intended investment is not completed within the specified LOI Period, the purchaser may be required to remit to the transfer agent the difference between the sales charge actually paid and the sales charge which would have been paid if the total of such purchases had been made at a single time. Any dealers assigned to the shareholder's account at the time a purchase was made during the LOI Period will receive a corresponding commission adjustment if appropriate. If the difference is not paid by the close of the LOI Period, the appropriate number of shares held in escrow will be redeemed to pay such difference. If the proceeds from this redemption are inadequate, the purchaser may be liable to the Fund for the balance still outstanding.

<u>Rights of Accumulation</u>. Subject to the limitations described in the aggregation policy, you may take into account your accumulated holdings in any class of the American Beacon Funds to determine your sales charge for A Class shares on investments in accounts eligible to be aggregated. If you make a gift of A Class shares, upon your request, you may purchase the shares at the sales charge discount allowed under rights of accumulation of all of your investments in any class of the American Beacon Funds.

<u>Aggregation</u>. Qualifying investments for aggregation include those made by you and your "immediate family" as defined in the Prospectus, if all parties are purchasing shares for their own accounts and/or:

• individual-type
 employee benefit plans, such as an IRA, individual 403(b) plan or single-participant Keogh-type plan;

• business
 accounts solely controlled by you or your immediate family (for example, you own the entire business);

• trust
 accounts established by you or your immediate family (for trusts with only one primary beneficiary, upon the trustor's
 death the trust account may be aggregated with such beneficiary's own accounts; for trusts with multiple primary
 beneficiaries, upon the trustor's death the trustees of the trust may instruct the Fund's
 transfer agent to establish
 separate trust accounts for each primary beneficiary; each primary beneficiary's separate trust account may then
 be aggregated with such beneficiary's own accounts);

• endowments
 or foundations established and controlled by you or your immediate family; or

• 529
 accounts, which will be aggregated at the account owner level (Class 529-E accounts may only be aggregated with an
 eligible employer plan).

Individual purchases by a trustee(s) or other fiduciary(ies) may also be aggregated if the investments are:

• for
 a single trust estate or fiduciary account, including employee benefit plans other than the individual-type employee benefit
 plans described above;

• made
 for two or more employee benefit plans of a single employer or of affiliated employers as defined in the Investment
 Company Act, excluding the individual-type employee benefit plans described above;

• for
 nonprofit, charitable or educational organizations, or any endowments or foundations established and controlled by such
 organizations, or any employer-sponsored retirement plans established for the benefit of the employees of such organizations,
 their endowments, or their foundations; or

• for
 individually established participant accounts of a 403(b) plan that is treated similarly to an employer-sponsored plan for
 sales charge purposes (see "Purchases by certain 403(b) plans" under "Sales Charges" above), or made for two or more such 403(b)
 plans that are treated similarly to employer-sponsored plans for sales charge purposes, in each case of
 a single employer or affiliated employers as defined in the Investment Company Act. Purchases made for nominee or street
 name accounts (securities held in the name of a broker-dealer or another nominee such as a bank trust department
 instead of the customer) may not be aggregated with those made for other accounts and may not be aggregated
 with other nominee or street name accounts unless otherwise qualified as described above.

<u>Concurrent Purchases</u>. As described in the Prospectus, you may reduce your A Class sales charge by combining simultaneous purchases in any of the American Beacon Funds.

<u>Other Purchases</u>. Pursuant to a determination of eligibility by the Manager, A Class shares of the Fund may be sold at NAV (without the imposition of a front-end sales charge) to:

1. current
 or retired trustees, and officers of the American Beacon Funds family, current or retired employees and directors of
 the Manager and its affiliated companies, certain family members and employees of the above persons, and trusts or plans
 primarily for such persons;

2. currently
 registered representatives and assistants directly employed by such representatives, retired registered representatives
 with respect to accounts established while active, or full-time employees (collectively, "Eligible Persons") (and
 their spouses, and children, including children in step and adoptive relationships, sons-in-law and daughters-in-law,
 if the Eligible Persons or the spouses or children of the Eligible Persons are listed in the account registration
 with the spouse or parent) of broker-dealers who have sales agreements with the Distributor (or who clear transactions
 through such dealers), plans for the dealers, and plans that include as participants only the Eligible Persons, their
 spouses and/or children;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

3. companies
 exchanging securities with the Fund through a merger, acquisition or exchange offer;

4. insurance
 company separate accounts;

5. accounts
 managed by the Manager, a sub-advisor to the Fund and its affiliated companies;

6. the
 Manager or a sub-advisor to the Fund and its affiliated companies;

7. an
 individual or entity with a substantial business relationship with, which may include the officers and employees of the
 Fund's Custodian or transfer agent, the Manager or a sub-advisor to the Fund and its affiliated companies, or an individual
 or entity related or relating to such individual or entity;

8. full-time
 employees of banks that have sales agreements with the Distributor, who are solely dedicated to directly supporting
 the sale of mutual funds;

9. directors,
 officers and employees of financial institutions that have a selling group agreement with the Distributor;

10. banks,
 broker-dealers and other financial institutions (including registered investment advisors and financial planners) that
 have entered into an agreement with the Distributor or one of its affiliates, purchasing shares on behalf of clients participating
 in the fund supermarket
 or in a wrap program, asset allocation program or other program in which the clients
 pay an asset-based fee;

11. clients
 of authorized dealers purchasing shares in fixed or flat fee brokerage accounts;

12. Employer-sponsored
 defined contribution - type plans, including 401(k) plans, 457 plans, employer sponsored 403(b) plans,
 profit-sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation
 plans, and IRA rollovers involving retirement plan assets invested in a fund in the American Beacon Funds fund
 family; and

13. Employee
 benefit and retirement plans for the Manager and its affiliates.

Shares are offered at NAV per share to these persons and organizations due to anticipated economies in sales effort and expense. Once an account is established under this NAV per share privilege, additional investments can be made at NAV per share for the life of the account.

It is possible that a broker-dealer may not be able to offer one or more of these waiver categories. If this situation occurs, it is possible that the investor would need to invest through another broker-dealer in order to take advantage of these waiver categories. The Fund may terminate or amend the terms of these sales charge waivers at any time.

<u>Moving Between Accounts</u>. Investments in certain account types may be moved to other account types without incurring additional A Class sales charges. These transactions include, for example:

• redemption
 proceeds from a non-retirement account (for example, a joint tenant account) used to purchase Fund shares
 in an IRA or other individual-type retirement account;

• "required
 minimum distributions" (as described in Section 401(a)(9) of the Internal Revenue Code) from  an IRA or other individual-type
 retirement account used to purchase Fund shares in a non-retirement account; and

• death
 distributions paid to a beneficiary's account that are used by the beneficiary to purchase Fund shares in a different
 account.

It is possible that a broker-dealer may not be able to offer the ability to move between accounts. If this situation occurs, it is possible that the investor would need to invest through another broker-dealer in order to take advantage of this privilege. Please contact your financial intermediary for additional information.

**ADDITIONAL INFORMATION REGARDING CONTINGENT DEFERRED SALES CHARGES**

As discussed in the Prospectus, the redemption of C Class shares may be subject to a CDSC if you redeem your shares within 12 months of purchase. If you purchased $250,000 or more of A Class shares of the Fund (and therefore paid no initial sales charges) and subsequently redeem your shares within 18 months of your purchase, you may be charged a CDSC upon redemption. In determining whether the CDSC is payable, it is assumed that shares not subject to the CDSC are the first redeemed followed by other shares held for the longest period of time. The CDSC will not be imposed upon shares representing reinvested dividends or other distributions, or upon amounts representing share appreciation. As described in the Prospectus, there are various circumstances under which the CDSC will be waived. Additional information about CDSC waivers is provided below.

The CDSC is waived under the following circumstances:

• Any
 partial or complete redemption following death or "disability" (as defined in the Internal Revenue Code) of a shareholder
 (including one who owns the shares with his or her spouse as a joint tenant with rights of survivorship) from
 an account in which the deceased or disabled is named. The Manager or the Fund's transfer agent may require documentation
 prior to waiver of the charge, including death certificates, physicians' certificates, etc.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Redemptions
 from a systematic withdrawal plan. If the systematic withdrawal plan is based on a fixed dollar amount or number
 of shares, systematic withdrawal redemptions are limited to no more than 10% of your account value or number
 of shares per year, as of the date the Manager or the Fund's transfer agent receives your request. If the systematic
 withdrawal plan is based on a fixed percentage of your account value, each redemption is limited to an amount
 that would not exceed 10% of your annual account value at the time of withdrawal.

• Redemptions
 from retirement plans qualified under Section 401 of the Internal Revenue Code. The CDSC will be waived
 for benefit payments made by American Beacon Funds directly to plan participants. Benefit payments include, but
 are not limited to, payments resulting from death, "disability", "retirement", "separation from service",
 (each as defined
 in the Internal Revenue Code) "required minimum distributions" (as described in Section 401(a)(9) of the Internal
 Revenue Code), in-service distributions, hardships, loans and qualified domestic relations orders. The CDSC waiver
 will not apply in the event of termination of the plan or transfer of the plan to another financial institution.

• Redemptions
 that are required minimum distributions from a traditional IRA as required by the Internal Revenue Service.

• Involuntary
 redemptions as a result of your account not meeting the minimum balance requirements, the termination and
 liquidation of the Fund, or other actions by the Fund.

• Distributions
 from accounts for which the broker-dealer of record has entered into a written agreement with the Distributor
 (or Manager) allowing this waiver.

• To
 return excess contributions made to a retirement plan.

• To
 return contributions made due to a mistake of fact.

The following example illustrates the operation of the CDSC. Assume that you open an account and purchase 1,000 shares at $10 per share and that six months later the NAV per share is $12 and, during such time, you have acquired 50 additional shares through reinvestment of distributions. If at such time you should redeem 450 shares (proceeds of $5,400), 50 shares will not be subject to the charge because of dividend reinvestment. With respect to the remaining 400 shares, the charge is applied only to the original cost of $10 per share and not to the increase in NAV of $2 per share. Therefore, $4,000 of the $5,400 redemption proceeds will pay the charge. At the rate of 1.00%, the CDSC would be $40 for redemptions of C Class shares. In determining whether an amount is available for redemption without incurring a deferred sales charge, the purchase payments made for all shares in your account are aggregated.

**REDEMPTIONS IN KIND**

Although the Fund intends to redeem shares in cash, the Fund reserves the right to pay the redemption price in whole or in part by a distribution of securities or other assets. However, shareholders always will be entitled to redeem shares for cash up to the lesser of $250,000 or 1% of the Fund's net asset value during any 90-day period. 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.

**TAX INFORMATION**

The tax information in the Prospectus and in this section relates solely to the federal income tax law and assumes that the Fund will continue to qualify each taxable year as a "regulated investment company" ("RIC") under the Internal Revenue Code (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 provided in the Prospectus. No attempt has been made 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 Prospectus 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</u>** **<u>Fund</u>**

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The Fund intends to continue 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 (together with Qualifying Other
 Income (as defined below), "Qualifying Income"), 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 Other 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 these 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 to satisfy 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 Prospectus) ("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 re-qualifying 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

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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.

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 do 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, the Fund 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.

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

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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 Other 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 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 Shareholders</u>**

General - For United States federal income tax purposes, distributions paid out of the Fund's current or accumulated earnings and profits will generally be taxable as ordinary dividend income. Distributions of net capital gain, if any, reported as capital gains dividends are taxable to a shareholder as long-term capital gains, regardless of how long the shareholder has held Fund shares. (Net capital gain is the excess (if any) of net long-term capital gain over net short-term capital loss, and investment company taxable income is all taxable income and capital gains, other than those gains and losses included in computing net capital gain, after reduction by deductible expenses.) The Fund may elect to retain its net capital gain or a portion thereof for investment and be taxed at corporate rates on the amount retained. In such case, it may designate the retained amount as undistributed capital gains in a notice to its shareholders who will be treated as if each received a distribution of its pro rata share of such gain, with the result that each shareholder will: (i) be required to report its pro rata share of such gain on its tax return as long-term capital gain; (ii) receive a refundable tax credit for his pro rata share of tax paid by the Fund on the gain; and (iii) increase the tax basis for its shares by an amount equal to the deemed distribution less the tax credit. Dividends and other distributions by the Fund are generally treated under the Internal Revenue Code as received by the shareholders at the time the dividend or distribution is made. 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 December 31 of that year if the Fund pays the distributions during the following January. Accordingly, those distributions will be reportable by, and taxed to, those shareholders for the taxable year in which that December 31 falls.

If the Fund makes a "return of capital" distribution to its shareholders – i.e., a distribution in excess of its current and accumulated earnings and profits the excess will (a) reduce each shareholder's tax basis in its shares (thus reducing any loss or increasing any gain on a shareholder's subsequent taxable disposition of the shares) and (b) if for any shareholder the excess is greater than that basis, be treated as realized capital gain.

Selling shareholders will generally recognize gain or loss in an amount equal to the difference between the shareholder's adjusted tax basis in the shares sold and the sale proceeds. If the shares are held as a capital asset, the gain or loss will be a capital gain or loss. The maximum tax rate applicable to net capital gains recognized by individuals and other non-corporate taxpayers is: (i) the same as the maximum ordinary income tax rate for gains recognized on the sale of capital assets held for one year or less; or (ii) 20% for gains recognized on the sale of capital assets held for more than one year (as well as certain capital gain distributions) (15% or 0% for individuals in certain tax brackets). If Fund shares are redeemed 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 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 redemption; 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 may 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.

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For U.S. individuals with income exceeding $200,000 ($250,000 if married and filing jointly), a 3.8% Medicare contribution tax will apply on all or a portion of their "net investment income," including interest, dividends, and capital gains, which generally includes taxable distributions received from the Fund and taxable gains on the disposition of shares of the Fund. This 3.8% tax also applies to all or a portion of the undistributed net investment income of certain shareholders that are estates and trusts. An investor also should be aware that the benefits of the reduced tax rate applicable to long-term capital gains may be impacted by the application of the alternative minimum tax to individual shareholders. Special tax rules apply to investments through defined contribution plans and other tax-qualified plans. Shareholders should consult their tax advisor to determine the suitability of shares of the Fund as an investment through such plans.

**Basis Election and Reporting** - A Fund shareholder who wants to use an acceptable method for basis determination 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 basis determination method a Fund shareholder elects may not be changed with respect to a redemption (including a redemption that is part of an exchange) of Fund 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 shareholders the basis information for Fund shares that are redeemed or exchanged and indicate whether they had a short-term (one year or less) or long-term (more than one year) holding period. Fund 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 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 non-resident 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 non-resident 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 pay, "short-term capital gain dividends" and "interest-related 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.

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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.

**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 "Massachusetts business trust." Under Massachusetts law, shareholders of such a trust may, under certain circumstances, be held personally liable for its obligations. 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 originally created to manage money for large institutional investors. The following individuals (and members of that individual's "immediate family"), are eligible to purchase shares of the R5 Class with an initial investment of less than $250,000: (i) employees of the Manager, or its parent company, RIM (ii) employees of a sub-advisor for Funds where it serves as sub-advisor, (iii) members of the Board, and (iv) members of the Manager's Board of Directors. The term "immediate family" refers to one's spouse, children, grandchildren, grandparents, parents, parents-in-law, brothers and sisters, sons- and daughters-in-law, a sibling's spouse, a spouse's sibling, aunts, uncles, nieces and nephews; relatives by virtue of remarriage (step-children, step-parents, etc.) are included. Any shareholders that the Manager transfers to the R5 Class upon termination of the class of shares in which the shareholders were originally invested is also eligible for purchasing shares of the R5 Class with an initial investment of less than $250,000.

The Investor Class was created to give individuals and other smaller investors an opportunity to invest in the American Beacon Funds. The R5 and Y Classes were created to manage money for large institutional investors, including pension and 401(k) plans. The A Class and C Class were created for investors investing in the American Beacon Funds through their broker-dealers or other financial intermediaries.

**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 Item 7 of the Fund's Form N-CSR for the fiscal year ended August 31, 2024.](https://www.sec.gov/ix?doc=/Archives/edgar/data/809593/000119312524249769/d872922dncsr.htm) In addition, the [unaudited financial statements are incorporated by reference to Item 7 of the Fund's Form N-CSR for the period ended February 28, 2025.](https://www.sec.gov/ix?doc=/Archives/edgar/data/809593/000119312525116042/d890035dncsrs.htm)

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The information in the financial highlights for the fiscal year ended August 31, 2021 was audited by the Fund's prior independent registered public accounting firm. Effective with the closing of the Reorganization expected to occur on February 6, 2026, the Fund will adopt the financial statements of the Target Floating Rate Fund. [The audited financial statements of the Target Floating Rate Fund are incorporated by reference to Item 7 of the Target Floating Rate Fund's Form N-CSR for the fiscal year ended March 31, 2025.](https://www.sec.gov/ix?doc=/Archives/edgar/data/1480207/000113322825006079/dft-efp15564_ncsr.htm) The information in those financial statements was audited by the Target Floating Rate Fund's independent registered public accounting firm for those periods.

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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 August 28, 2023** 

**<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.

**<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.

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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 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**

**DOUBLELINE CAPITAL LP** **PROXY VOTING POLICY**

The determination of how to vote proxies relating to the Fund's portfolio securities is made by DoubleLine Capital pursuant to its written proxy voting policies and procedures (the "Proxy Policy"), which have been adopted pursuant to Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). The Proxy Policy also applies to any voting rights and/or consent rights on behalf of the portfolio securities, with respect to debt securities, including but not limited to, plans of reorganization, and waivers and consents under applicable indentures.

The Proxy Policy is designed and implemented in a manner reasonably expected to ensure that voting and consent rights are exercised in the best interests of the Fund and their shareholders. To assist DoubleLine Capital in carrying out its proxy voting obligations, on behalf of DoubleLine Capital, DoubleLine Group has retained a third-party proxy voting service provider, currently Glass, Lewis & Co. ("Glass Lewis"), as their proxy voting agent. Pursuant to an agreement with DoubleLine Group, Glass Lewis obtains proxy ballots with respect to securities held by the Fund, evaluates the individual facts and circumstances relating to any proposal, and generally votes on any such proposal in accordance with the guidelines set forth in this Appendix B (the "Guidelines"). In the event that a proposal is not adequately addressed by the Guidelines, Glass Lewis will make a recommendation to DoubleLine Capital as to how to vote on such proposal, which DoubleLine Capital may accept or reject in accordance with the Proxy Policy. DoubleLine Capital's personnel are responsible for managing the relationship with Glass Lewis and/or any other third-party proxy voting service provider and for overseeing its compliance with the Proxy Policy. DoubleLine Capital, in its discretion, may retain another third-party proxy voting service provider in addition to or in lieu of Glass Lewis.

In connection with exercising a voting or consent right on behalf of the Fund, DoubleLine Capital will monitor for material conflicts of interest arising between DoubleLine Capital and the Fund in accordance with the Proxy Policy. If no conflict exists, DoubleLine Capital will vote the proxy on a case-by-case basis in the best interest of each client under the circumstances in accordance with the Proxy Policy, as discussed above.

If a material conflict does exist, DoubleLine Capital will seek to resolve any such conflict in accordance with the Proxy Policy, which seeks to resolve such conflict in the Fund's best interest by pursuing any one of the following courses of action: (i) voting (or not voting) in accordance with the guidelines included in the Proxy Policy; (ii) convening a Proxy Voting Committee meeting to assess available measures to address the conflict and implementing those measures; (iii) voting in accordance with the recommendation of an independent third-party service provider chosen by the Proxy Voting Committee; (iv) voting (or not voting) in accordance with the instructions of the Fund's Board of Trustees, or any committee thereof; or (v) not voting with respect to the proposal if consistent with DoubleLine Capital's fiduciary obligations. In voting proxies, including those in which a material conflict may be determined to exist, DoubleLine Capital may also consider the factors and guidelines included in its Proxy Policy.

In certain limited circumstances, particularly in the area of structured finance, DoubleLine Capital may enter into voting agreements or other contractual obligations that govern the voting of shares and, in such cases, will vote any proxy in accordance with such agreement or obligation.

In addition, where DoubleLine Capital determines that there are unusual costs and/or difficulties associated with voting a proxy, which more typically might be the case with respect to proposals relating to non-U.S. issuers, DoubleLine Capital reserves the right to not vote on such a proposal unless it determines that the potential benefits of voting on such proposal exceed the expected cost to the Fund.

**Proxy Voting Guidelines**<br>**Effective July 1, 2023**

The Advisers have a fiduciary duty to clients, and shall exercise diligence and care, with respect to its proxy voting authority. Accordingly, the Advisers will review each proposal to determine the relevant facts and circumstances and adopt the following guidelines as a framework for analysis in seeking to maximize the value of client investments. The guidelines do not address all potential voting matters and actual votes by the Advisers may vary based on specific facts and circumstances.

A. Director Elections

Directors play a critical role in ensuring that the company and its management serve the interests of its shareholders by providing leadership and appropriate oversight. We believe that the board of directors should have the requisite industry knowledge, business acumen and understanding of company stakeholders in order to discharge its duties effectively.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Frequency of Elections**<br>Electing all directors annually. |  | **For** |
| **Uncontested Elections**<br>Voting management nominees, unless the nominee lacks independence or focus, has had chronic absences or presents other material concerns to the detriment of the effectiveness of the board. |  | **For** |
| **Majority Voting**<br>Allowing majority voting unless incumbent directors must resign if they do not receive a majority vote in an uncontested election |  | **For** |
| **Cumulative Voting**<br>Allowing cumulative voting unless the company previously adopted a majority voting policy |  | **For** |
| **Changes in Board Structure**<br>Changing the board structure, such as the process for vacancies or director nominations, or the board size, unless there is an indication that the change is an anti-takeover device, or it diminishes shareholder rights |  | **For** |
| **Stock Ownership**<br>Requiring directors to own company shares. | X | **Against** |
| **Contested Elections**<br>The qualifications of nominees on both slates, management track record and strategic plan for enhancing shareholder value, and company financial performance generally will be considered when voting nominees in a contested election | X | **Case-by-Case** |

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B. Section 14A Say-On-Pay Votes

Current law requires companies to allow shareholders to cast non-binding advisory votes on the compensation for named executive officers, including the frequency of such votes. The Advisers generally support proposals for annual votes, as well as the ratification of executive compensation unless the compensation structure or any prior actions taken by the board or compensation committee warrant a case-by-case analysis.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Frequency of Say-On-Pay Votes**<br>Annual shareholder advisory votes regarding executive compensation | X | **For** |
| **Compensation Disclosures**<br>Seeking additional disclosures related to executive and director pay unless similar information is already provided in existing disclosures or reporting. | X | **For** |
| **Executive Compensation Advisory**<br>Executive compensation proposals generally will be assessed based on its structure, prevailing industry practice and benchmarks, and any problematic prior pay practices or related issues involving the board/compensation committee. | X | **Case-by-Case** |
| **Golden Parachute Advisory**<br>Golden parachute proposals, in general, will be assessed based on the existing change-in-control arrangements, the nature and terms of the triggering event(s) and the amount to be paid. | X | **Case-by-Case** |

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C. Audit-Related

The Advisers generally support proposals for the selection or ratification of independent auditors, subject to a consideration of any conflicts of interest, poor accounting practices or inaccurate prior opinions and related fees.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Appointment of Auditors**<br>Selecting or ratifying independent auditors, unless there is a material conflict of interest, a history of poor accounting practice or inaccurate opinions, or excessive fees. |  | **For** |
| **Non-Audit/Consulting Services**<br>Other alternative service providers, conflicts of interest, and company disclosures are areas of consideration when voting proposals to limit other engagements with auditors. | X | **Case-by-Case** |
| **Indemnification of Auditors**<br>Indemnification of auditors generally will be assessed based on the nature of the engagement, the auditor's work history and field of expertise, and the terms of the agreement such as its impact on the ability of shareholders to pursue legal recourse against the auditor for certain acts or omissions. | X | **Case-by-Case** |
| **Rotation of Auditors**<br>Shareholder proposals requiring auditor rotation generally will be assessed based on any audit issues involving the company, the auditor's tenure with the company, and policies and practices surrounding auditor evaluations. | X | **Case-by-Case** |

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D. Investment Company Matters

When the Advisers invest in a DoubleLine Fund with other public shareholders, the Advisers will vote the shares of such fund in the same proportion as the votes of the other shareholders. Under this "echo voting" approach, the Advisers' potential conflict is mitigated by replicating the voting preferences expressed by the other shareholders. With respect to specific proposals involving the DoubleLine Funds, the Advisers generally support recommendations by the fund's board unless applicable laws and regulations prohibit the Advisers from doing so.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Share Classes**<br>Issuance of new classes or series of shares |  | **For** |
| **Investment Objectives**<br>Changing a fundamental investment objective to nonfundamental. |  | **Against** |
| **Investment Restrictions**<br>Changing fundamental restrictions to nonfundamental generally will be assessed in consideration of the target investments, reason(s) for the change and its impact on the portfolio. |  | **Case-by-Case** |
| **Distribution Agreements**<br>Distribution agreements generally will be assessed based on the distributor's services and reputation, applicable fees, and other terms of the agreement |  | **Case-by-Case** |
| **Investment Advisory Agreements**<br>Investment advisory agreements generally will be assessed based on the applicable fees, fund category and investment objective, and performance. |  | **Case-by-Case** |

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E. Shareholder Rights and Defenses

The Advisers believe that companies have a fundamental obligation to protect the rights of shareholders. Therefore, the Advisers generally support proposals that hold the board and management accountable in serving the best interest of shareholders and that uphold their rights. However, the Advisers generally will not support proposals from certain shareholders that are hostile, disruptive, or are otherwise counter to the best interest of the Advisers' clients.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Appraisal Rights**<br>Providing shareholders with rights of appraisal | X | **For** |
| **Fair Price Provision**<br>Fair price provisions that ensures each shareholder's securities will be purchased at the same price if the company is acquired in disagreement with the board. However, fair price provisions may not be supported if it is used as an anti-takeover device by the board. | X | **For** |
| **Special Meetings**<br>Providing or restoring rights to call a special meeting so long as the threshold to call a meeting is no less than 10 percent of outstanding shares | X | **For** |
| **Confidential Voting**<br>Allowing shareholders to vote confidentially | X | **For** |
| **Written Consents**<br>Allowing shareholders to act by written consent | X | **For** |
| **Greenmail**<br>Adopting anti-greenmail charter or bylaw amendments or otherwise restricting the company's ability to make greenmail payments for repurchasing shares at a premium to prevent a hostile takeover | X | **For** |
| **Supermajority Vote**<br>Requiring a supermajority vote, unless there are disproportionate substantial shareholders that weaken minority votes |  | **Against** |
| **Bundled Proposals**<br>Bundled or conditional proposals generally will be reviewed to determine the benefit or cost of the matters included or if there is a controversy or any matter that is adverse to shareholder interests |  | **Case-by-Case** |
| **Preemptive Rights**<br>Preemptive rights, in general, will be assessed based on the size of the company and its shareholder base, for which larger publicly held companies with a broad shareholder base may be less ideal. |  | **Case-by-Case** |
| **Shareholder Rights Plans (Poison Pills)**<br>Poison pills generally will be assessed based on the company's governance practices, existing takeover defenses, and the terms of the plan, including the triggering mechanism, duration, and redemption/rescission features. Requests to have shareholders ratify plans generally will be supported. | X | **Case-by-Case** |

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F. Extraordinary Transactions

Proposals for transactions that may affect the ownership interests or voting rights of shareholders, such as mergers, asset sales and corporate or debt restructuring, will be assessed on a case-by-case basis generally in consideration of the economic outcome for shareholders, the potential dilution of shareholder rights and its impact on corporate governance, among other relevant factors.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Reincorporation**<br>Reincorporating in another state or country in support of the rights and economic interests of shareholders. |  | **For** |
| **Merger, Corporate Restructuring and Spin** **Offs**<br>Merger, corporate restructuring and spin off proposals generally will be assessed with the view of maximizing the economic value of shareholder interests. The purchase or sale price and other deal terms will be reviewed, among other factors, to ensure that that the transaction is aligned with the long-term interests of shareholders. |  | **Case-by-Case** |
| **Debt Restructuring**<br>The terms of the transaction, current capital markets environment, and conflicts of interest are factors that generally will be considered for ensuring that the proposal enhances the economic value of shareholder interests. |  | **Case-by-Case** |
| **Liquidations and Asset Sales**<br>As with other transaction proposals, the long-term economic impact of the transaction will be the focus of review of such proposals and, in general, factors such as the sale price, costs and conflicts of interest will be considered. |  | **Case-by-Case** |

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G. Capital Structure

The Advisers believe that the prudent management of debt and equity to finance company operations and growth, and which is supportive of shareholders' rights and economic interests, is critical to financial viability.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Common Stock**<br>Issuing common stock for recapitalizations, stock splits, dividends or otherwise reasonably amending outstanding shares for a specific purpose |  | **For** |
| **Multi-Class Shares**<br>Adopting multi-class share structures so long as they have equal voting rights. |  | **For** |
| **Repurchase Programs**<br>Adopting plans to repurchase shares in the open market unless shareholders cannot participate on equal terms. |  | **For** |
| **Blank Check Preferred Stock**<br>Allowing the board to issue preferred shares without prior shareholder approval and setting the terms and voting rights of preferred shares at the board's discretion. |  | **Against** |
| **Recapitalization Plans**<br>The rationale and objectives; current capital markets environment; impact on shareholder interests including conversion terms, dividends and voting rights; and any material conflicts of interest are factors that generally will be considered when reviewing proposals to reclassify debt or equity capital |  | **Case-by-Case** |

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H. Compensation

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The Advisers believe that compensation arrangements should align the economic interests of directors, management, and employees with those of shareholders and consider factors such as (1) local norms, (2) industry-specific practices and performance benchmarks, and (3) the structure of base and incentive compensation. The Advisers generally support transparency (e.g., disclosures related to the performance metrics and how they promote better corporate performance, etc.) and periodic reporting with respect to compensation.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Employee 401 (k) Plan**<br>Adopting a 401 (k) plan for employees. |  | **For** |
| **Employee Stock Option Plan (ESOP)**<br>Requiring shareholder approval to adopt a broad-based ESOP or to increase outstanding shares for an existing plan unless the allocation of outstanding shares to the ESOP exceeds five percent or 10 percent among all stock-based plans |  | **For** |
| **Recoupment Provisions (Clawbacks)**<br>Adopting clawback provisions in cases of revised financial results or performance indicators on which prior compensation payments were based, as well as for willful misconduct or violations of law or regulation that result in financial or reputational harm to the company. | X | **For** |
| **Limits on Executive or Director Compensation**<br>Setting limits on executive or director compensation unless there is a substantial deviation from industry practice or any problematic issue involving the board/compensation committee or prior pay practices. | X | **Against** |
| **Equity-Based and Other Incentive Plans**<br>Incentive plans, in general, will be assessed based on the prevailing local and industry-specific practices and performance benchmarks, the terms of the plan and whether they are aligned with company goals and shareholder interests, the cost of the plan, and the overall compensation structure |  | **Case-by-Case** |
| **Severance Agreements for Executives** **(Golden Parachutes)**<br>Golden parachutes generally will be assessed based on the existing change-in-control arrangements, the nature and terms of the triggering event(s) and the amount to be paid. |  | **Case-by-Case** |

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I. Corporate Governance

The Advisers believe that authority and accountability for establishing business strategies, corporate policies and compensation generally should rest with the board and management. The independence, qualifications, and integrity of the board as well as the effectiveness of management and their oversight, which must be aligned with shareholder interests, are essential to good governance. The following general guidelines reflect these principles although material environmental, social and governance (ESG) factors, which have a potential financial impact on the company and the valuation of client investments, if any, are also considered.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Quorum Requirements**<br>Establishing a majority requirement, unless shareholder turnout has been an issue, or a reduced quorum is reasonable based on applicable laws or regulations and the market capitalization or ownership structure of the company. |  | **For** |
| **Annual Meetings**<br>Changing the date, time, or location of annual meetings, unless the proposed schedule or location is unreasonable |  | **For** |
| **Board Size**<br>Setting the board size, so long as the proposal is consistent with the prevailing industry practice and applicable laws or regulations. |  | **For** |
| **Proxy Access**<br>Allowing shareholders to nominate director candidates in proxy ballots with reasonable limitations (e.g., minimum percentage and duration of ownership and a cap on board representation) for preventing potential abuse by certain shareholders | X | **For** |
| **Independent Directors**<br>Requiring the board chair and a majority of directors to be independent directors. Proposals for a lead independent director may be supported in cases where the board chair is not independent | X | **For** |
| **Independent Committees**<br>Requiring independent directors exclusively for the audit, compensation, nominating and governance committees. | X | **For** |
| **Removal of Directors**<br>Removing a director without cause. | X | **For** |
| **Indemnification of Directors and Officers**<br>Indemnifying directors and officers for acts and omissions made in good faith and were believed to be in the best interest of the company. Limitations on liability involving willful misconduct or violations of law or regulation, or a breach of fiduciary duty, generally will be voted against |  | **For** |
| **Term Limits for Directors**<br>Imposing term limits on directors unless the director evaluation process is ineffective and related issues persist | X | **Against** |
| **Classified Boards**<br>Establishing a classified board. |  | **Against** |
| **Adjournment of Meetings**<br>Providing management the authority to adjourn annual or special meetings without reasonable grounds |  | **Against** |
| **Amendments to Bylaws**<br>Giving the board the authority to amend bylaws without shareholder approval. |  | **Against** |

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J. Environment or Climate

The Advisers would generally consider the recommendations of management for shareholder proposals involving environmental issues as it believes that, in most cases, elected directors and management are in the best position to address such matters. In addition, reporting that provides meaningful information for evaluating the financial impact of environmental policies and practices is generally supported unless it is unduly costly or burdensome or it places the company at a competitive disadvantage. Material ESG factors, which have a potential financial impact on the company and the valuation of client investments, if any, are also considered.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Environmental and Climate Disclosures**<br>Providing environmental/climate-related disclosures and reporting unless it is duplicative or unsuitable. |  | **For** |
| **Environmental and Climate Policies**<br>Environmental and climate policies generally will be assessed based on the company's related governance practices, local and industry-specific practices, the nature and extent of environmental and climate risks applicable to the company, and the economic benefit to shareholders |  | **Case-by-Case** |

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K. Human Rights or Human Capital/Workforce

The Advisers would generally consider the recommendations of management for shareholder proposals involving social issues as it believes that, in most cases, elected directors and management are in the best position to address such matters. In addition, reporting that provides meaningful information for evaluating the financial impact of social policies and practices is generally supported unless it is unduly costly or burdensome or it places the company at a competitive disadvantage. Material ESG factors, which have a potential financial impact on the company and the valuation of client investments, if any, are also considered.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Human Rights and Labor Disclosures**<br>Providing human rights and labor-related disclosures and reporting unless it is duplicative or unsuitable. |  | **For** |
| **Human Rights and Labor Policies**<br>Human rights and labor policies generally will be assessed based on the company's related governance practices, applicable law or regulations, local and industry-specific practices, the nature and extent of supply chain or reputational risks applicable to the company, and their economic benefit to shareholders |  | **Case-by-Case** |

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L. Diversity, Equity, and Inclusion

The Advisers generally support reporting that provides meaningful information for evaluating the financial impact of diversity, equity, and inclusion (DEI) policies and practices unless it is unduly costly or burdensome. For policy proposals, the Advisers will consider existing policies, regulations and applicable local standards and best practices, to determine if they provide an added benefit to shareholders. Material ESG factors, which have a potential financial impact on the company and the valuation of client investments, if any, are also considered.

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|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **DEI Disclosures**<br>Providing Equal Employment Opportunity (EEO-1) Reports, and other additional disclosures or reporting unless it is duplicative or unsuitable. |  | **For** |
| **Anti-Discrimination Policy**<br>Adopting an anti-discrimination and harassment policy |  | **For** |
| **Other DEI Policies**<br>Other DEI policies generally will be assessed based on the company's related governance practices, applicable law or regulations, and local and industry-specific practices |  | **Case-by-Case** |

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M. Other Social Issues

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|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Political Contribution and Activities**<br>Political contributions and lobbying activities generally will be reviewed in consideration of legal restrictions and requirements, applicable policies and historical practice, and its cost-benefit to the company. Related disclosures to shareholders generally are supported. |  | **Case-by-Case** |
| **Charitable Contributions**<br>Charitable contributions, in general, will be reviewed in consideration of applicable policies and historical practice, conflicts of interests, as well as the cost-benefit of charitable spending. Related disclosures to shareholders generally are supported |  | **Case-by-Case** |

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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, subject to the lowest level of credit risk. Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. Obligations rated A are judged to be upper-medium grade and are 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 be speculative and are subject to substantial credit risk. Obligations rated B are considered speculative and are subject to high credit risk. Obligations rated Caa are judged to be speculative, 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 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, and C 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 that 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

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obligation are not made on the date due, unless S&P Global believes that such payments will be made within the next 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. A rating on an obligation 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 adverse business or economic conditions than is the case for higher ratings. Obligations rated BBB are deemed to be of good credit quality. BBB ratings indicate that expectations of credit 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, and MIG/VMIG 3. The MIG/VMIG 1 designation denotes superior credit quality. Excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing. The MIG/VMIG 2 designation denotes strong credit quality. Margins of protection are ample, although not as large as in the preceding group.

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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 to repay short-term 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 typically means obligations with an original maturity of no more than 365 days. 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 higher rating categories. 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 that could lead to the obligor's inadequate capacity to meet its financial commitments. 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, 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.

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 a timeframe of up to 13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public finance markets. 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. 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. It indicates that 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, and indicates that 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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|:---|:---|
| **American Beacon or the Manager** | American Beacon Advisors, Inc. |
| **Beacon Funds or the Trust** | American Beacon Funds |
| **Board** | Board of Trustees |
| **Brexit** | The United Kingdom's departure from the European Union |
| **CBO** | Collateralized Bond Obligation |
| **CCO** | Chief Compliance Officer |
| **CD** | Certificate of Deposit |
| **CDO** | Collateralized Debt Obligation |
| **CDSC** | Contingent Deferred Sales Charge |
| **CFTC** | Commodity Futures Trading Commission |
| **CLO** | Collateralized Loan 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 |
| **Dodd-Frank Act** | Dodd-Frank Wall Street Reform and Consumer Protection Act |
| **DRD** | Dividends-received deduction |
| **ESG** | Environmental, Social, and/or Governance |
| **ETF** | Exchange-Traded Fund |
| **EU** | European Union |
| **FINRA** | Financial Industry Regulatory Authority, Inc. |
| **Floaters** | Floating rate debt instruments |
| **Forwards** | Forward Currency Contracts |
| **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 |
| **IRA** | Individual Retirement Account |
| **IRS** | Internal Revenue Service |
| **Junk Bonds** | High yield, non-investment grade bonds |
| **LIBOR** | ICE LIBOR |
| **LOI** | Letter of Intent |
| **Management Agreement** | The Fund's Management Agreement with the Manager |
| **Moody's** | Moody's Investors Service, Inc. |
| **NAV** | Net asset value |
| **NYSE** | New York Stock Exchange |
| **OTC** | Over-the-Counter |
| **Proxy Policy** | Proxy Voting Policy and Procedures |
| **QDI** | Qualified Dividend Income |
| **RIC** | Regulated Investment Company |
| **RIH** | Resolute Investment Holdings, LLC |
| **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 |

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|:---|:---|
| **State Street** | State Street Bank and Trust Co. |
| **Trustee Retirement Plan** | Trustee Retirement and Trustee Emeritus and Retirement Plan |
| **UK** | United Kingdom |

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**American Beacon DoubleLine Select Income Fund**

**Statement of Additional Information**

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**ORGANIZATION AND HISTORY OF THE FUND**

The American Beacon DoubleLine Select Income Fund (the "Acquiring Fund" or "Fund") is a newly created separate series of American Beacon Funds (the "Trust"), an open-end management investment company organized as a Massachusetts business trust on January 16, 1987. The Fund constitutes a separate investment portfolio with distinct investment objectives and a distinct purpose and strategy. The Fund is "diversified" as that term is defined by the Investment Company Act of 1940, as amended (the "Investment Company Act"). The Fund is comprised of multiple classes of shares designed to meet the needs of different groups of investors. This SAI relates to the Y Class and Investor Class shares of the Fund.

The shareholders of the DoubleLine Select Income Fund ("Target Select Income Fund") are being asked to approve an Agreement and Plan of Reorganization and Termination ("Reorganization Agreement") between the Target Trust, on behalf of the Target Select Income Fund, and the Acquiring Trust, on behalf of the Fund, pursuant to which the Target Select Income Fund will be reorganized with and into the Fund. A copy of the Reorganization Agreement is attached as Exhibit A to the Proxy Statement/Prospectus. The Reorganization Agreement contemplates certain transactions, including: (a) the transfer of all assets of the Target Select Income Fund to the Fund in exchange solely for Fund shares and the Fund's assumption of all liabilities of the Target Select Income Fund; (b) the distribution of those Fund shares pro rata to shareholders of the Target Select Income Fund in exchange for their shares therein and in complete liquidation thereof; and (c) the complete termination of the Target Select Income Fund. The Fund is newly organized and has no assets, operating history or performance information of its own as of the date of this SAI. The Fund has been created as a shell series of Acquiring Trust solely for the purposes of acquiring the Target Select Income Fund's assets and assuming the Target Fund's liabilities and continuing its business investment operations and will not conduct any investment operations until after the Closing Date (as defined in the Prospectus). If the Reorganization Agreement is approved, the Fund will acquire all of the assets and assume all of the liabilities of the Target Select Income Fund. Since the investment objectives of the Fund are identical to those of the Target Select Income Fund, the Target Select Income Fund and the Fund have substantially similar investment strategies, and the Fund engages the investment sub-advisor (as defined in "Investment Advisory Agreement" below) currently providing services to the Target Select Income Fund as the Fund's investment sub-advisor, the Fund will adopt the prior performance and financial history of the Target Select Income Fund and the Target Select Income Fund will be the accounting and performance survivor.

**ADDITIONAL INFORMATION ABOUT INVESTMENT STRATEGIES AND RISKS**

The Fund's investment objectives, principal investment strategies, and principal risks are described in the Prospectus. 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 objectives. It may use some of the investment strategies only at some times or it may not use them at all. Investors should carefully consider their own investment goals and risk tolerance before investing in the Fund.

**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, credit-card and other categories of receivables, equipment leases, 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

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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.

The value of asset-backed securities, like that of traditional fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However, asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The price paid by the Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and the average life of the securities are based on a number of factors, including the anticipated rate of prepayment of the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities. Moreover, when the Fund reinvests the proceeds of a prepayment in these circumstances, it will likely receive a rate of interest that is lower than the rate on the security that was prepaid. To the extent that the Fund purchases asset-backed securities at a premium, prepayments may result in a loss to the extent of the premium paid. If the Fund buys such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying assets may occur at a slower than expected rate, creating extension risk. This particular risk may effectively change a security that was considered short- or intermediate-term at the time of purchase into a longer-term security. Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates than does the value of shorter-term securities, extension risk could increase the volatility of the Fund. When interest rates decline, the value of an asset-backed security with prepayment features may not increase as much as that of other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate or retard prepayments and thus affect maturities.

**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.

**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.

• **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.

• **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.

• **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.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• **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.

• **Eurodollar and Yankee CD Obligations** **.** Eurodollar obligations are U.S. dollar obligations issued outside the United States
 by domestic or foreign entities, while Yankee CDs are U.S. dollar obligations issued inside the United States by foreign
 entities. There is generally less publicly available information about foreign issuers and there may be less governmental
 regulation and supervision of foreign stock exchanges, brokers and listed companies. Foreign issuers may use
 different accounting and financial standards, and the addition of foreign governmental restrictions may affect adversely
 the payment of principal and interest on foreign investments. In addition, not all foreign branches of United States
 banks are supervised or examined by regulatory authorities as are United States banks, and such branches may not
 be subject to reserve requirements. Eurodollar (and, to a limited extent, Yankee dollar) obligations are subject to certain
 sovereign risks. One such risk is the possibility that a sovereign country might prevent capital, in the form of dollars,
 from flowing across its borders. Other risks include adverse political and economic developments; the extent and
 quality of government regulation of financial markets and institutions; the imposition of foreign withholding taxes; and
 the expropriation or nationalization of foreign issuers.

• **Government Money Market Funds.** The Fund may
 invest cash balances in money market funds that are registered as investment
 companies under the Investment Company Act, including money market funds that are advised by the Manager. Money
 market funds invest in highly-liquid, short-term instruments, which include cash and cash equivalents, and debt securities
 with high credit ratings and short-term maturities, such as U.S. Treasuries. A "government money market fund" is required
 to invest at least 99.5% of its total assets in cash, U.S. government securities, and/or repurchase agreements that are fully
 collateralized by government securities or cash. Government securities include any security issued or guaranteed as to principal
 or interest by the U.S. government and its agencies or instrumentalities. By investing in a money market fund, the Fund becomes a shareholder
 of that money market fund. As a result, Fund shareholders indirectly bear their proportionate share
 of the expenses of the money market funds in which the
 Fund invests in addition to any fees and expenses Fund shareholders
 directly bear in connection with the
 Fund's own operations. These expenses may include, for example, advisory and
 administrative fees, including advisory fees charged by the Manager to any applicable money market funds advised by the Manager.
 These other fees and expenses are reflected in the Fees and Expenses Table for the
 Fund in its Prospectus, if applicable.
 Shareholders also would be exposed to the risks associated with money market funds and the portfolio investments
 of such money market funds, including that a money market fund's yield will be lower than the return that the Fund would have derived
 from other investments that would provide liquidity. 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 can cause the price of a money market security to decrease and may reduce the money market fund's yield.
 In addition, a money market fund is subject to the risk that the value of an investment may be eroded over time by inflation.
 Factors that could adversely affect the value of a money market fund's shares include, among other things, a sharp rise
 in interest rates, an illiquid market for the securities held by the money market fund, a high volume of redemption activity in
 a money market fund's shares, and a credit event or credit rating downgrade affecting one or more of the issuers of securities
 held by the money market fund. There can be no assurance that a money market fund will maintain a $1.00 per share
 net asset value ("NAV") at all times.

• **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.

• **Repurchase Agreements**  *.*** Repurchase agreements are agreements pursuant to which the
 Fund purchases securities from
 a bank that is a member of the Federal Reserve System (or a foreign bank or U.S. branch or agency of a foreign bank), or from
 a securities dealer, that agrees to repurchase the securities from the
 Fund at a higher price on a designated future date. Repurchase
 agreements generally are for a short period of time, usually less than a week. Costs, delays, or losses could result if the
 selling party to a repurchase agreement becomes bankrupt or otherwise defaults.

• **Short-term** **Corporate Debt Securities.** Short-term corporate debt securities are securities and bonds issued by corporations
 with shorter terms to maturity. Corporate securities generally bear a higher risk than U.S. government bonds.

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• **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 Loan Obligations ("CLOs")** — The Fund may invest in CLOs. CLOs are a type of asset-backed security. A CLO is ordinarily issued by a trust or other special purpose entity ("SPE"), which is a company founded solely for the purpose of securitizing payment claims arising out of a diversified asset pool. On this basis, marketable securities are issued by the SPE which, due to the diversification of the underlying risk, are intended to represent a lower level of risk than the original assets. The redemption of the securities issued by the SPE typically takes place at maturity out of the cash flow generated by the collected claims. A CLO 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. CLOs may charge management fees and administrative expenses.<br>For CLOs, the cash flows from the trust are split into two or more portions, called tranches, that offer various maturity, risk and yield characteristics. Losses caused by defaults on underlying assets are borne first by the holders of subordinate tranches. Tranches are typically categorized as senior, mezzanine and subordinated/ equity, according to their degree of risk. Senior tranches are paid from the cash flows from the underlying assets before the junior tranches. If there are defaults or the CLO's collateral otherwise underperforms, scheduled payments to senior tranches take precedence over those of mezzanine tranches, and scheduled payments to mezzanine tranches take precedence over those of subordinated/equity tranches. 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. 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. Since they are partially protected from defaults, senior tranches from a CLO trust typically have higher ratings and lower yields than their underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, CLO 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 CLO securities as a class. 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.<br>The risks of an investment in a CLO depend largely on the type of the collateral securities and the class, or tranche, of the instrument in which the Fund invests. The Fund may have the right to receive payments only from the CLO, and generally does not have direct rights against the issuer or the entity that sold the assets to be securitized. The underlying loans purchased by CLOs generally are performing at the time of purchase but may become non-performing, distressed or defaulted. Normally, CLOs are privately offered and sold and, thus, are not registered under the securities laws. As a result, investments in CLOs may be characterized as illiquid securities; however, an active dealer market may exist for CLOs 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 Prospectus (e.g., prepayment and extension risk, credit risk, liquidity risk, market risk, and interest rate risk), CLOs 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 on the CLO; (ii) the quality of the collateral may decline in value or default; (iii) the risk that the Fund may invest in CLOs, or tranches thereof, that are subordinate to other tranches thereof; (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; (vi) the lack of a readily available secondary market; (vii) risk of forced "fire sale" liquidation due to technical defaults such as coverage test failures; and (viii) the CLO manager may perform poorly. If the issuer of a CLO uses shorter term financing to purchase longer term securities, the issuer may be forced to sell its securities at below market prices if it experiences difficulty in obtaining short-term financing, which may adversely affect the value of the CLO owned by the Fund. 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.

**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.

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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"). 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.

**"Covenant-Lite" Obligations Risk** — Certain investments, such as loans in which the Fund may invest directly or have exposure to through its investments in structured securities, may be "covenant-lite." Covenant-lite obligations contain fewer maintenance covenants than other obligations, or no maintenance covenants at all, and may not include terms which allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached, which would allow the lender to restructure the obligation or take other action intended to help mitigate losses. This may expose the Fund to greater credit risk associated with the borrower and reduce the Fund's ability to restructure a problematic obligation and mitigate potential loss. As a result, the Fund's exposure to losses on such investments may be increased, especially during a downturn in the credit cycle, and the Fund may experience relatively greater difficulty or delays in enforcing its rights on its holdings of covenant-lite obligations than its holdings of obligations or securities with financial maintenance covenants.

**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.

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**Creditor Liability and Participation on Creditors' Committees** — Generally, when the Fund holds bonds, loans or other similar debt securities of an issuer, the Fund becomes a creditor of the issuer. If the Fund is a creditor of an issuer, it may be subject to challenges related to these investments, either in connection with the bankruptcy of the issuer or in connection with another action brought by other creditors of the issuer, shareholders of the issuer or the issuer itself. Although It is under no obligation to do so, the sub-advisor to the Fund may from time to time have an opportunity to consider, negotiate or otherwise participate in the restructuring of the Fund's portfolio investment or the issuer of such investment. Accordingly, the Fund may from time to time participate on committees formed by creditors to negotiate with the management of financially troubled issuers of investments held by the Fund. Such participation may subject the Fund to expenses such as legal fees and may make the sub-advisor an "insider" of the issuer for purposes of the federal securities laws, and therefore may restrict such sub-advisor's ability to trade in or acquire additional positions in a particular issuer when it might otherwise desire to do so. Participation on such committees also may expose the Fund to potential liabilities under the federal bankruptcy laws or other laws governing the rights of creditors and debtors. Similarly, the sub-advisor may actively participate in bankruptcy court and related proceedings on behalf of the Fund in order to protect the Fund's interests in connection with a restructuring transaction, and the sub-advisor may cause the Fund to enter into an agreement reasonably indemnifying third parties or advancing from the Fund's assets any legal fees or other costs to third parties, including parties involved in or assisting the Fund with a restructuring transaction, such as trustees, servicers and other third parties. Further, the sub-advisor may have the authority to represent the Trust, or any Fund(s) thereof, on creditors' committees (or similar committees) or otherwise in connection with the restructuring of an issuer's debt and generally with respect to challenges related to the investments held by the Fund relating to the bankruptcy of an issuer or in connection with another action brought by other creditors of the issuer, shareholders of the issuer or the issuer itself. If the sub-advisor also manages other funds or accounts that are deemed affiliated persons of the sub-advisor and that hold the same debt investment as the Fund, the Investment Company Act's prohibition against certain joint transactions may prevent the sub-advisor from negotiating with the issuer on behalf of the Fund when it might otherwise desire to do so, unless the sub-advisor obtained certain exemptive relief applicable to the Fund or complied with existing regulatory guidance. In such instances, this may limit the sub-advisor's ability to protect the Fund's interests in a restructuring transaction.

**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, its service providers, third-party fund distribution platforms, and the issuers of the Fund's investments may be prone to operational and information security risks resulting from cybersecurity incidents, including cyber-attacks. In general, cybersecurity 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 (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, the Manager, the Custodian (as defined below), 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, result in violations of applicable privacy and other laws, 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 (also known as "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 or corrective measures, and such costs may be ongoing because threats of cyber-attacks are constantly evolving as cyber-attackers become more sophisticated and their techniques become more complex. Similar types of cybersecurity risks are also present for issuers of the Fund's investments, which could result in material adverse consequences for such issuers and may cause the Fund 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. Furthermore, as a result of cyber-attacks, disruptions or failures, an exchange or market may close or issue trading halts on specific securities or the entire market, which may result in the Fund being, among other things, unable to buy or sell certain securities or unable to accurately price its investments. 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 the Fund's 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

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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. There are inherent limitations in risk management systems that seek to reduce the risks associated with cybersecurity incidents, including the possibility that risks may not have been adequately identified or prepared for, or that different or unknown threats may emerge in the future. Furthermore, the Fund does not control the cybersecurity systems and plans of the issuers of the Fund's investments, third party service providers, trading counterparties or any other service providers whose operations may affect the Fund or its shareholders. The use of cloud-based service providers could heighten or change these risks. In addition, remote and hybrid work arrangements by the Fund, the Manager or their service providers could increase all of the above risks, create additional data and information accessibility concerns, and make the Fund, the Manager or their service providers susceptible to operational disruptions, any of which could adversely impact their operations.

**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.

**Delayed Funding Loans and Revolving Credit Facilities** — The Fund may enter into, or acquire participations in, delayed funding loans and revolving credit facilities. Delayed funding loans and revolving credit facilities are borrowing arrangements in which the lender agrees to make loans up to a maximum amount upon demand by the borrower during a specified term. A revolving credit facility differs from a delayed funding loan in that as the borrower repays the loan, an amount equal to the repayment may be borrowed again during the term of the revolving credit facility. Delayed funding loans and revolving credit facilities usually provide for floating or variable rates of interest. These commitments may have the effect of requiring the Fund to increase its investment in a company at a time when it might not otherwise decide to do so (including at a time when the company's financial condition makes it unlikely that such amounts will be repaid). To the extent that the Fund is committed to advance additional funds, it will at all times segregate or "earmark" assets determined to be liquid in an amount sufficient to meet such commitments.

The Fund may invest in delayed funding loans and revolving credit facilities with credit quality comparable to that of issuers of its securities investments. Delayed funding loans and revolving credit facilities may be subject to restrictions on transfer, and only limited opportunities may exist to resell such instruments. 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 Fund currently intends to treat delayed funding loans and revolving credit facilities for which there is no readily available market as illiquid for purposes of the Fund's limitation on illiquid investments. Delayed funding loans and revolving credit facilities are considered to be debt obligations for purposes of the Fund's investment restriction relating to the lending of funds or assets.

**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 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 risks.

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, 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. The SEC

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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:

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• **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. 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 the
 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

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worse than if it had not entered into any such contract. 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.

□ *Index Futures Contracts.* An index futures
 contract, such as an equity index futures contract or a bond index futures contract,
 is based on the value of an underlying index. Futures contracts on indices expose the
 Fund to volatility in an underlying
 index.

□ *Interest Rate Futures Contracts.* An interest rate futures contract is a contract for the future delivery of an interest-bearing
 debt security. Interest rate futures contracts expose the
 Fund to price fluctuations resulting from changes in interest
 rates. The Fund could
 suffer a loss if interest rates rise after the
 Fund has purchased an interest rate futures contract or fall
 after the Fund has
 sold an interest rate futures contract.

□ *Treasury Futures Contracts.* A Treasury futures contract is a contract for the future delivery of a U.S. Treasury security.
 Treasury futures contracts expose the
 Fund to price fluctuations resulting from changes in interest rates and to potential
 losses if interest rates do not move as expected.

• **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 the
 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.

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□  ***Interest Rate and Inflation Swaps.*** In an interest rate swap, the parties exchange payments based on fixed or floating
 interest rates multiplied by a hypothetical or "notional" amount. For example, one party might agree to pay the
 other a specified fixed rate on the notional amount in exchange for recovering a floating rate on that notional amount.
 Interest rate swap agreements entail both interest rate risk and counterparty risk. The purchase of an interest
 rate cap entitles the purchaser, to the extent that a specified index exceeds a predetermined interest rate, to receive
 payments of interest on a notional principal amount from the party selling such interest rate cap. The purchase
 of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a predetermined
 interest rate, to receive payments of interest on a notional principal amount from the party selling such
 interest rate floor. There is a risk that based on movements of interest rates, the payments made under a swap agreement
 will be greater than the payments received. The
 Fund may also invest in inflation swaps, where an inflation
 rate index is used in place of an interest rate index.

□  ***Structured Notes.*** The
 Fund may invest in structured notes, which are derivative debt instruments with principal and/or
 interest payments linked to the value of a reference instrument (for example, a commodity, a foreign currency,
 an index of securities, an interest rate or other financial indicators). The payments on a structured note may
 vary based on changes in one or more specified reference instruments, such as a floating interest rate compared
 to a fixed interest rate, the exchange rates between two currencies, one or more securities or a securities or
 commodities index. A structured note may be positively or negatively indexed. For example, its principal amount and/or
 interest rate may increase or decrease if the value of the reference instrument increases, depending upon the terms
 of the instrument. The change in the principal amount payable with respect to, or the interest rate of, a structured
 note may be a multiple of the percentage change (positive or negative) in the value of the underlying reference
 instrument or instruments, which can make the value of such securities volatile. This type of note increases
 the potential for income but at a greater risk of loss than a typical debt security of the same maturity and credit
 quality. Structured notes can be used to increase the
 Fund's exposure to changes in the value of assets or to hedge
 the risks of other investments that the
 Fund holds. <br> Structured
 notes are subject to interest rate risk. They are also subject to credit risk with respect both to the issuer and,
 if applicable, to the underlying security or borrower. If the underlying investment or index does not perform as anticipated,
 the structured note might pay less interest than the stated coupon payment or repay less principal upon maturity.
 The price of structured notes may be very volatile and they may have a limited trading market, making it difficult
 to value them or sell them at an acceptable price. In some cases, the
 Fund may enter into agreements with an
 issuer of structured notes to purchase minimum amounts of those notes over time. Certain issuers of structured products
 may be deemed to be investment companies as defined in the Investment Company Act. As a result, the Fund's investments
 in these structured products may be subject to limits applicable to investments in other investment
 companies.

• **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 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.

**Distressed Investment Risk** — The Fund may invest in distressed investments, which are issued by companies that are, or might be, involved in reorganizations or financial restructurings, either out of court or in bankruptcy. The Fund may also invest in debt securities of issuers that are in default or in bankruptcy. Investments in financially stressed or distressed issuers are speculative and involve substantial risks. These investments may present a substantial risk of default or may be in default at the time of investment. In addition, these securities may fluctuate more in price, and are typically less liquid than other higher-rated debt securities. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in the payment of principal or interest on its portfolio holdings. The Fund is also subject to significant uncertainty as to when, in what manner, and for what value obligations evidenced by securities of financially stressed or distressed issuers will eventually be satisfied (e.g., through a liquidation of the issuer's assets, an exchange offer or plan of reorganization, or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is made or plan of reorganization is adopted with respect to stressed or distressed debt held by the Fund, there can be no assurance that the securities or other assets received by the Fund in connection with such exchange offer or plan of

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reorganization will not have a lower value or income potential than may have been anticipated when the investment was made or no value. Defaulted obligations might be repaid only after lengthy workout or bankruptcy proceedings during which the issuer might not make any interest or other payments. In any reorganization or liquidation proceeding relating to a defaulted obligation, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Moreover, any securities received by the Fund upon completion of a workout or bankruptcy proceeding may be illiquid, speculative, or restricted as to resale. Similarly, if the Fund participates in negotiations with respect to any exchange offer or plan of reorganization with respect to the securities of a stressed or distressed issuer, the Fund may be restricted from disposing of such securities. To the extent that the Fund becomes involved in such proceedings, the Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. Also among the risks inherent in investments in a troubled issuer is that it frequently may be difficult to obtain information as to the true financial condition of the issuer. Judgments about the credit quality of a financially stressed or distressed issuer and the relative value of its securities may prove to be wrong, and there is no assurance that the evaluation of the value of the assets collateralizing the Fund's investments or the prospects for a successful reorganization or similar action in respect of any company will be correct. See "High-Yield Bonds" disclosure below for the risks associated with low-quality, high-risk corporate bonds, a type of fixed-income security.

**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.

**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.

**Exchange-Traded Notes —** ETNs are senior unsecured debt obligations that are traded on exchanges and the returns of which are linked to the performance of market indexes, minus applicable fees. In addition to trading ETNs on exchanges, investors may redeem ETNs directly with the issuer on a weekly basis, typically in a minimum amount of 50,000 units, or hold the ETNs until maturity. At maturity, the issuer pays to the investor a cash amount equal to the principal amount, subject to the day's market benchmark or strategy factor. ETNs may be riskier than ordinary debt securities, do not make periodic coupon payments and may have no principal protection. The Fund's investment in an ETN may be influenced by many factors, including time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying assets, highly volatile commodities prices, weather, agriculture, trade, changes in interest rates, changes in the issuer's credit rating, and economic, legal, political, geographic, monetary and other governmental policies, action and inaction and events that affect the referenced underlying asset. Investing in ETNs is not equivalent to investing directly in index components or the relevant index itself. Because ETNs are debt securities, they possess credit risk. If the issuer has financial difficulties or goes bankrupt, the investor may not receive the return it was promised. Because ETNs are senior unsecured debt securities, an investment in an ETN exposes the Fund to the risk that an ETN's issuer may be unable to repay the note upon maturity. In addition, the value of the ETN may drop due to a downgrade in the issuer's credit rating, despite the underlying market benchmark or strategy remaining unchanged. As a result, the value of the ETN may decline, including to zero. As with investments in ETFs and investment companies, the Fund will bear its proportionate share of the fees and expenses of the ETN, which may cause the Fund's operating expenses to be higher and its performance to be lower than it would if it invested directly in the securities of the index or other reference assets of the ETN. The Fund's decision to sell its ETN holdings may be limited by the availability of a liquid secondary market. Although an ETN may be listed on an exchange, the issuer may not be required to maintain the listing, and there can be no assurance that a secondary market will exist for an ETN. If the Fund must sell some or all of its ETN holdings and the market for such ETN is weak, it may have to sell such holdings at a discount.

ETNs also are subject to tax risk. No assurance can be given that the IRS will accept, or a court will uphold, how a fund characterizes and treats ETNs for tax purposes.

An ETN that is tied to a specific market benchmark or strategy may not be able to replicate and maintain exactly the composition and relative weighting of securities, commodities or other components in the applicable market benchmark or strategy. Some ETNs that use leverage in an effort to amplify the returns of an underlying market index can, at times, be relatively illiquid, and thus they

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may be difficult to purchase or sell at a fair price. Leveraged ETNs may offer the potential for greater return, but the potential for loss and the speed at which losses can be realized also are greater. The market value of ETNs may differ from their market benchmark or strategy. This difference in price may be due to the fact that the supply and demand in the market for ETNs at any point in time is not always identical to the supply and demand in the market for the securities, commodities or other components underlying the market benchmark or strategy that the ETN seeks to track. As a result, there may be times when an ETN trades at a premium or discount to its market benchmark or strategy.

**Fixed-Income Investments** — The Fund may hold debt instruments, including government and corporate debt instruments, and other fixed-income securities. Typically, the values of fixed-income securities change inversely with prevailing interest rates. Therefore, a fundamental risk of fixed-income securities is interest rate risk, which is the risk that their value will generally decline as prevailing interest rates rise, which may cause the Fund's 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 the 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.

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.

In addition, specific types of fixed-income securities in which the Fund may invest are subject to the risks described elsewhere in this SAI.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• **High-Yield Bonds.** High-yield,
 non-investment grade bonds (also known as "junk bonds") are low-quality, high-risk corporate
 bonds that generally offer a high level of current income. These bonds are considered speculative with respect
 to the issuer's ability to pay interest and repay principal by rating organizations. For example, Moody's, S&P Global,
 and Fitch, Inc. currently rate them below Baa3, BBB- and BBB-, respectively. Please see "**Appendix** **C**:
 Ratings Definitions"
 below for an explanation of the ratings applied to high-yield bonds. High-yield bonds are often issued as a result
 of corporate restructurings, such as leveraged buyouts, mergers, acquisitions, or other similar events. They may also
 be issued by smaller, less creditworthy companies or by highly leveraged firms, which are generally less able to make
 scheduled payments of interest and principal than more financially stable firms. Because of their lower credit quality,
 high-yield bonds must pay higher interest to compensate investors for the substantial credit risk they assume. Lower-rated
 securities are subject to certain risks that may not be present with investments in higher-grade securities. Investors
 should consider carefully their ability to assume the risks associated with lower-rated securities before investing
 in the Fund. The
 lower rating of certain high-yield corporate income securities reflects a greater possibility that the
 financial condition of the issuer or adverse changes in general economic conditions may impair the ability of the issuer
 to pay income and principal. Changes by rating agencies in their ratings of a fixed-income security also may affect
 the value of these investments; however, allocating investments in the
 Fund among securities of different issuers should
 reduce the risks of owning any such securities separately. The prices of these high-yield securities tend to be less sensitive
 to interest rate changes than higher-rated investments, but more sensitive to adverse economic changes or individual
 corporate developments. During economic downturns, periods of rising interest rates, or when inflation or deflation
 occurs, highly leveraged issuers may experience financial stress that adversely affects their ability to service principal
 and interest payment obligations, to meet projected business goals or to obtain additional financing, and the markets
 for their securities may be more volatile. They may also not have more traditional methods of financing available
 to them and may be unable to repay debt at maturity by refinancing. In addition, lower-rated securities may experience
 substantial price declines when there is an expectation that issuers of such securities might experience financial
 difficulties. As a result, the yields on lower-rated securities can rise dramatically. However, the higher yields of high-yield
 securities may not reflect the value of the income stream that holders of such securities may expect, but rather
 the risk that such securities may lose a substantial portion of their value as a result of their issuer's financial restructuring
 or default. If an issuer defaults, the
 Fund may incur additional expenses to seek recovery. Additionally, accruals
 of interest income for the
 Fund may have to be adjusted in the event of default. In the event of an issuer's default, the Fund may write
 off prior income accruals for that issuer, resulting in a reduction in the
 Fund's current dividend
 payment. In the event of an in court or out of court restructuring of high-yield bond in which the
 Fund invests, the
 Fund may acquire (and subsequently sell) equity securities or exercise warrants that it receives. In addition, the market
 for high-yield securities generally is less robust and active than that for higher-rated securities, which may limit the
 Fund's ability to sell such securities at fair value in response to changes in the economy or financial markets and could
 make the valuation of these portfolio securities more difficult.

**Foreign Debt Securities** — The Fund may invest in foreign fixed and floating rate income securities, all or a portion of which may be non-U.S. dollar denominated and which include: (a) debt obligations issued or guaranteed by foreign national, provincial, state, municipal or other governments with taxing authority or by their agencies or instrumentalities, including Brady Bonds; (b) debt obligations of supranational entities; (c) debt obligations of the U.S. Government issued in non-dollar securities; (d) debt obligations and other fixed-income securities of foreign corporate issuers (both dollar and non-dollar denominated); and (e) debt obligations of U.S. corporate issuers (both Eurodollar and non-dollar denominated). Foreign debt securities may be structured as fixed-, variable- or floating-rate obligations, or as zero-coupon, pay-in-kind and step-coupon securities. There is no minimum rating criteria for the Fund's investments in such securities. The cost of servicing foreign debt will generally be adversely affected by rising international interest rates, because many external debt obligations bear interest at rates which are adjusted based upon international interest rates. The Fund's foreign debt securities may be held outside of the United States in the primary market for the securities in the custody of certain eligible foreign banks and trust companies, as permitted under the Investment Company Act. Investing in the securities of foreign issuers involves special considerations that are not typically associated with investing in the securities of U.S. issuers and the risks similar to those of foreign securities, such as the fact that foreign markets can be extremely volatile, foreign debt securities may be less liquid than securities of U.S. issuers, and transaction fees, custodial costs, currency conversion costs and other fees are generally higher for foreign debt securities.

**Foreign Investing** — The Fund may invest in U.S. dollar-denominated and non-U.S. dollar-denominated equity, debt and derivative instruments of foreign issuers and foreign branches of U.S. banks. 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 investments 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

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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; 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. Non-U.S. 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. Individual foreign companies also may differ favorably or unfavorably from U.S. companies in the same industry.

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. Trading practices, including those involving the release of assets in advance of payment, may involve increased risks in the event of a failed trade or the insolvency of a broker-dealer, and may involve substantial delays. 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 investments 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

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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, as are transaction costs, although the sub-advisor endeavors to achieve the most favorable net results on portfolio transactions.

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. 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.

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• **European Securities**. The
 Fund's performance may be affected by political, social and economic conditions in Europe, such
 as the growth of the economic output (the gross national product of the countries in the region), 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, interest rates in European countries, monetary
 exchange rates between European countries, and conflict between European countries. <br> The
 Economic and Monetary Union ("EMU") of the European Union ("EU") is comprised of EU members that have adopted
 the euro currency. By adopting the euro as its currency, a member state relinquishes control of its own monetary
 policies and is subject to fiscal and monetary controls. 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. Although
 the EMU has adopted a common currency and central bank, there is no fiscal union; therefore, money does not
 automatically flow from countries with surpluses to those with deficits. These restrictions and characteristics may limit
 the ability of EMU member countries to implement monetary policy to address regional economic conditions and significantly
 impact every European country and their economic partners, including those countries that are not members
 of the EMU. In addition, those EU member states that are not currently in the Eurozone (Bulgaria, the Czech Republic,
 Denmark, Hungary, Poland, Romania, and Sweden), excluding Denmark, are required to seek to comply with convergence
 criteria to permit entry to the Eurozone. The economies and markets of European countries are often closely
 connected and interdependent, and events in one country in Europe can have an adverse impact on other European
 countries. Decreasing imports or exports, changes in governmental or other regulations on trade, changes in the
 exchange rate of the euro or other European currency, the threat of default or actual default by one or more EU member
 countries, or other European countries, on its sovereign debt, and/or an economic recession in one or more European
 countries may have a significant adverse effect on the economies of other European countries and major trading
 partners outside Europe. <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 national unemployment; the possible default
 of government debt in several European countries; public health crises; political unrest; economic sanctions; inflation;
 energy crises; the future of the euro as a common currency; and war and military conflict, such as 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 order to prevent further economic
 deterioration, certain countries, without prior warning, can institute "capital controls." Countries may use these
 controls to restrict volatile movements of capital entering and exiting their country. Such controls may negatively affect the Fund's
 investments. 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. Many European
 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 European countries and their financial 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. In addition, issuers may face difficulties obtaining credit or refinancing existing obligations;
 financial institutions may require government or central bank support, or need to raise capital, and/or be impaired
 in their ability to extend credit. Furthermore, certain European 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. Certain European countries have also developed increasingly strained relationships with the U.S., and if
 these relationships were to worsen, they could adversely affect European issuers that rely on the U.S. for trade. <br> In
 addition, the national politics of European countries have been unpredictable and subject to influence by disruptive political
 groups, ideologies, and polarizing political events such as the conflict between Israel and Hamas. Secessionist movements,
 as well as government or other responses to such movements, may create instability and uncertainty in a country
 or region. 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 and in the Middle East also could impact financial
 markets, as could military conflicts. For example, Houthi attacks on commercial shipping in the Red Sea and Gulf
 of Aden, and retaliatory action, may disrupt supply chains and cause difficulties for impacted businesses, including

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those that wish to ship goods through that route. The impact of these kinds of events could be significant and far-reaching and materially impact the value and liquidity of the Fund's investments. Russia's war with Ukraine has negatively impacted European economic activity. The Russia/Ukraine war and Russia's response to sanctions imposed by the U.S. and other countries are impossible to predict, but have severely impacted the performance of the economies of European and other countries, including through adverse effects to global financial and energy markets, global supply chains and global growth, and consequential inflation. Investments in companies with contractual relationships with Russian counterparties, or with significant operations and/or assets in Russia could be adversely impacted by the new legal, political, and regulatory environment, whether by increased costs or the termination of business plans or operations due to sanctions. Various companies operating in Russia, or with Russian counterparties, have faced difficulties enforcing Russian debts or contractual reliefs due to the Russian court's hostility towards European companies in response to sanctions.<br>Certain countries have applied to become new member countries of the EU, and these candidate countries' accessions may become more controversial to the existing EU members. Some member states may repudiate certain candidate countries joining the EU due to concerns about the possible economic, immigration and cultural implications. Certain other countries have applied to join or, in the case of Finland and Sweden, have recently joined, the North Atlantic Treaty Organization ("NATO"). Russia is understood to oppose certain expansions, or potential expansions, of NATO and the EU, and its reaction to such developments could negatively impact European economic activity. The United Kingdom withdrew from the European Union on January 31, 2020 and entered into a transition period, which ended on December 31, 2020. The longer-term economic, legal, and political framework between the United Kingdom and the EU is still developing and may lead to ongoing political and economic uncertainty in the United Kingdom, Europe, and the global market. Investments in companies with significant operations and/or assets in the United Kingdom could be adversely impacted by the new legal, political, and regulatory environment, whether by increased costs or impediments to the implementation of business plans. The uncertainty resulting from any further exits from the EU, or the possibility of such exits, would also be likely to cause market disruption in the EU and more broadly across the global economy, as well as introduce further legal, political, and regulatory uncertainty in Europe.

□  ***United Kingdom Securities.*** 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> On
 December 31, 2020, the United Kingdom left the European Union in an event commonly referred to as "Brexit." The
 United Kingdom and the European Union then reached a trade agreement that became effective on May 1, 2021,
 after being ratified by all applicable United Kingdom and European Union governmental bodies. Until the economic
 effects of Brexit become clearer, and while a period of political, regulatory and commercial uncertainty continues,
 there remains a risk that Brexit may have a negative impact on the United Kingdom, the broader global economy,
 or the value of the British pound sterling, any of which may impact the value of Fund investments. <br> The
 United Kingdom's economy relies heavily on the export of financial services to the United States and other European
 countries. At the end of March 2021, the UK and the European Union concluded technical discussions on the
 content of a Memorandum of Understanding on financial services, setting out how the UK and EU financial services
 regulators will co-operate and share information. The implementation of this legal framework and basis of co-operation
 remains to be seen, and so the period following the United Kingdom's withdrawal from the European Union
 is expected to be one of significant political and economic uncertainty, particularly until the United Kingdom government
 and EU member states agree and implement the terms of the United Kingdom's future relationship with
 the European Union. <br> Although the 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 as a result of Brexit 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.

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• **Frontier and Emerging Market Investments.** The
 Fund may invest in frontier and emerging market securities. The Fund may consider
 a country to be a frontier or 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 frontier and
 emerging market country securities involve special risks. The economies, markets and political structures of a number
 of the frontier and 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 frontier and 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 and 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. Emerging
 market countries may also experience a higher level of exposure and vulnerability to the adverse effects of climate
 change. This may be attributed to both the geographic location of emerging market countries and/or a country's
 lack of access to technology or resources to adjust and adapt to its effects. An increased occurrence and severity
 of natural disasters and extreme weather events such as droughts and decreased crop yields, heat waves, flooding
 and rising sea levels, and increased spread of disease, could cause harmful effects to the performance of affected
 economies. <br> The
 economies of frontier and 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. Frontier and
 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. Governments. Frontier and 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> Frontier
 and 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
 frontier and 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 frontier and emerging capital markets may impose differential capital gain taxes on foreign investors. <br> An
 issuer or governmental authority that controls the repayment of a frontier or 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 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

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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 frontier and 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. Frontier and 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.<br>There may be less publicly available information about issuers in frontier and emerging market countries 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 frontier or emerging market countries.<br>Practices in relation to the clearing or settlement of securities transactions in frontier and 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 frontier and 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.

**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.

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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.

**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.

**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. 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 the 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.

**Leverage Risk** — Borrowing transactions, reverse repurchase agreements, certain derivatives transactions, securities lending transactions and other investment transactions such as when-issued, delayed-delivery, or forward commitment transactions may create investment leverage. When the Fund engages in transactions that have a leveraging effect on the Fund's investment, the value of the Fund will be potentially more volatile and all other risks will tend to be compounded. This is because leverage generally creates investment risk with respect to a larger base of assets than the Fund would otherwise have and so magnifies the effect of any increase or decrease in the value of the Fund's underlying assets. The use of leverage is considered to be a speculative investment practice and may result in losses to the Fund. Certain derivatives have the potential for unlimited loss, regardless of the size of the initial investment. The use of leverage may cause the Fund to liquidate positions when it may not be advantageous to do so to satisfy repayment, interest payment, or margin obligations or to meet asset segregation or coverage requirements.

**Loan Interests, Participations and Assignments** — 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 Fixed-Income Investments discussed above and carry additional risks described in this section. Loan interests are different from traditional debt securities in that debt securities generally are part of a large issue of securities to the public, whereas loan interests may not be a security and may represent a specific commercial loan to a borrower.<br>Loan Interests. The Fund's ability to receive payments in connection with loans depends on the financial condition of the borrower. The sub-advisor may not rely solely on another lending institution's credit analysis of the borrower, but may perform its own investment analysis of the borrower. The sub-advisor's analysis may include consideration of the borrower's financial strength,

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managerial experience, debt coverage, additional borrowing requirements or debt maturity schedules, changing financial conditions, and responsiveness to changes in business conditions and interest rates. 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 sub-advisor. Loan interests of borrowers whose creditworthiness is poor involves substantially greater risks and may be highly speculative.<br>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.<br>Loans may be issued in connection with highly leveraged transactions, such as restructurings, leveraged buyouts, leveraged recapitalizations and acquisition financing. In such highly leveraged transactions, the borrower assumes large amounts of debt in order to have the financial resources to attempt to achieve its business objectives. Accordingly, loans that are part of highly leveraged transactions involve a significant risk that the borrower may default or go into bankruptcy or become insolvent. Borrowers that are in bankruptcy or restructuring may never pay off their debts 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 loan.<br>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 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. 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. 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.<br>Participation Interests. The participation by the Fund in a lender's portion of a loan typically will result in the Fund having a contractual relationship only with such lender, not with the business entity borrowing the funds. As a result, the Fund may have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the participation and only upon receipt by such lender of payments from the borrower. As a result, the Fund will be exposed to the credit risk of both the borrower and the institution selling the participation.<br>Assignments. The purchaser of an assignment typically succeeds to all the rights and obligations under the loan agreement with the same rights and obligations as the assigning lender. Assignments may, however, 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. In addition, the Fund may not be able to unilaterally enforce all rights and remedies under the loan and with regard to any associated collateral.<br>Resale Restrictions. Loans may be subject to legal or contractual restrictions on resale. Loans normally are not registered with the SEC or any state securities commission and 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 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, 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,

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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 any such investments are determined to be illiquid, they will be subject to the Fund's restrictions on investments in illiquid securities.<br>In certain circumstances, the Manager, the sub-advisor or their affiliates (including on behalf of clients other than the Fund) or the Fund may be in possession of material non-public information about a borrower as a result of its ownership of a loan and/or corporate debt security of a borrower. Because U.S. laws and regulations generally prohibit trading in securities of issuers while in possession of material, non-public information, the Fund could be unable (potentially for a substantial period of time) to trade securities or other instruments issued by the borrower when it would otherwise be advantageous to do so and, as such, could incur a loss. In circumstances when the sub-advisor or the Fund determines to avoid or to not receive non-public information about a borrower for loan investments being considered for acquisition by the Fund or held by the Fund, the Fund may be disadvantaged relative to other investors that do receive such information, and the Fund may not be able to take advantage of other investment opportunities that it may otherwise have.<br>Prepayment Risk. 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 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.

Lender Liability. 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.

**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.

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• **Collateralized Mortgage Obligation ("CMO") Residuals.** CMO residuals are mortgage securities issued by agencies or
 instrumentalities of the U.S. Government or by private originators of, or investors in, mortgage loans, including savings
 and loan associations, homebuilders, mortgage banks, commercial banks, investment banks and special purpose
 entities of the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied
 first to make required payments of principal and interest on the CMOs and second to pay the related administrative
 expenses and any management fee of the issuer. The residual in a CMO structure generally represents the
 interest in any excess cash flow remaining after making the foregoing payments. Each payment of such excess cash flow
 to a holder of the related CMO residual represents income and/or a return of capital. The amount of residual cash flow
 resulting from a CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate
 of each class of CMO, prevailing interest rates, the amount of administrative expenses and the pre-payment experience
 on the mortgage assets. In particular, the yield to maturity on CMO residuals is extremely sensitive to pre-payments
 on the related underlying mortgage assets, in the same manner as an interest-only ("IO") class of stripped
 mortgage-backed securities. See "Stripped Mortgage-Backed Securities." In addition, if a series of a CMO includes
 a class that bears interest at an adjustable rate, the yield to maturity on the related CMO residual will also be extremely
 sensitive to changes in the level of the index upon which interest rate adjustments are based. As described elsewhere
 with respect to stripped mortgage-backed securities, in certain circumstances the
 Fund may fail to recoup fully
 its initial investment in a CMO residual. <br> CMO
 residuals are generally purchased and sold by institutional investors through several investment banking firms acting
 as brokers or dealers.. In addition, CMO residuals may, or pursuant to an exemption therefrom, may not have been
 registered under the Securities Act. CMO residuals, whether or not registered under the Securities Act, may be subject
 to certain restrictions on transferability, and may be deemed "illiquid" and subject to the
 Fund's limitations on investment
 in illiquid securities. Liquidity in CMO trading markets also may be limited, and CMO residuals may be significantly
 more volatile than other CMO interests.

• **Collateralized Mortgage Obligations** **("CMOs").** A CMO is a debt obligation of a legal entity that is collateralized by mortgages
 or mortgage-related assets. These securities may be issued by U.S. Government agencies, instrumentalities or
 sponsored enterprises such as Fannie Mae or Freddie Mac or by trusts formed by private originators of, or investors in,
 mortgage loans, including savings and loan associations, mortgage bankers, commercial banks, insurance companies,
 investment banks and special purpose subsidiaries of the foregoing. CMOs divide the cash flow generated from
 the underlying mortgages or mortgage pass-through securities into different groups referred to as "tranches," which
 are typically retired sequentially over time in order of priority. 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 they are more
 typically collateralized by portfolios of mortgage pass-through securities guaranteed by GNMA; FHLMC and FNMA
 (each a government-sponsored enterprise and may be owned entirely by private shareholders); and their income streams. <br> 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 certain tranches of CMOs
 may be subject to contingencies, and certain tranches may bear some or all of the risk of default on the underlying
 mortgages. CMO tranches 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 CMO tranches with the earliest maturities
 generally will be retired prior to their stated maturity date. Thus, the early retirement of particular tranches of a
 CMO would have a similar 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's
 investments in CMOs. An increase or decrease in prepayment rates (resulting from a decrease or increase
 in mortgage interest rates) will affect the yield, average life, and price of CMOs. Under certain CMO structures, certain
 tranches have priority over others with respect to the receipt of repayments on the mortgages. Therefore, depending
 on the type of CMOs in which the
 Fund invests, the investment may be subject to a greater or lesser risk of prepayment
 than other types of mortgage-related securities. The prices of certain CMOs, depending on their structure and
 the rate of prepayments, can be volatile. Some CMOs may also not be as liquid as other securities.

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• **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 borrowers 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 return earned on the cash proceeds of the securities sold until the settlement date of the forward purchase. If such
 benefits do not exceed the income, capital appreciation and gain due to mortgage prepayments that would have been
 realized on the securities sold as part of the mortgage dollar roll, the Fund would incur a loss. <br> The
 Fund only enters into covered dollar rolls, which means that 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. Since the Fund may reinvest
 the cash proceeds from the sale, the transactions may involve leverage. <br> Each
 mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a subsequent purchase
 or sale of a substantially similar security in the forward market. Mortgage dollar roll transactions may result in higher
 transaction costs, increase interest rate risk or result in an increased portfolio turnover rate. Mortgage dollar rolls involve
 the risk that the market value of the securities subject to the
 Fund's forward purchase commitment may decline below,
 or the market value of the securities subject to the
  Fund's forward sale commitment may increase above, the exercise
 price of the forward commitment. Additionally, because dollar roll transactions do not require the purchase and
 sale of identical securities, the characteristics of the security delivered to the
 Fund may be less favorable than the security
 delivered to the dealer. The successful use of dollar rolls may depend upon the
 sub-advisor's ability to correctly predict
 interest rates and prepayments, depending on the underlying security. There is no assurance that dollar rolls can be
 successfully employed. In addition, in the event the buyer of the securities under a mortgage dollar roll files for bankruptcy
 or becomes insolvent, the
 Fund's use of the proceeds of the sale portion of the transaction may be restricted
 pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund's obligation
 to purchase the similar securities in the forward transaction.

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• **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). There are generally three types of mortgage pass-through
 securities: (1) those issued by the U.S. government or one of its agencies or instrumentalities, such as GNMA,
 FNMA, and FHLMC; (2) those issued by private issuers that represent an interest in or are collateralized by pass-through
 securities issued or guaranteed by the U.S. government or one of its agencies or instrumentalities; and (3) those
 issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through
 securities without a government guarantee but that usually have some form of private credit enhancement. <br> The
 rate of pre-payments on underlying mortgages will affect the price and volatility of a mortgage-related security, and
 may have the effect of shortening or extending the effective duration of the security relative to what was anticipated
 at the time of purchase. To the extent that unanticipated rates of pre-payment on underlying mortgages increase
 the effective duration of a mortgage-related security, the volatility of such security can be expected to increase. <br> Government
 and Government-Related Mortgage Pass-Through Securities. 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. <br> 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:

□  ***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 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.

□  ***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.

□  ***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
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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.<br>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.<br>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.<br>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.

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□  ***Mortgage Pass-Through Securities Issued by Private Organizations*** — The pools underlying privately-issued mortgage
 pass-through securities consist of mortgage loans secured by mortgages or deeds of trust creating a first lien

 non-governmental issuers generally offer a higher rate of interest than government and government-related pools
 because there are no direct or indirect government guarantees of payments in such pools. The timely payment of
 interest and principal on mortgage loans in these pools may be supported by various other forms of insurance or guarantees,
 including individual loan, pool and hazard insurance, subordination and letters of credit. Such insurance and
 guarantees may be issued by private insurers, banks and mortgage  poolers. There is no assurance that private guarantors
 or insurers, if any, will meet their obligations. Timely payment of interest and principal of these pools also
 may be partially supported by various enhancements such as over-collateralization and senior/subordination structures
 and by various forms of insurance or guarantees, including individual loan, title, pool and hazard insurance.
 The insurance and guarantees are issued by government entities, private insurers or the mortgage poolers.
 These mortgage pass-through securities do not have the same credit standing as U.S. government guaranteed
 securities and generally offer a higher yield than similar securities issued by a government entity. Some mortgage
 pass-through securities issued by private organizations may not be readily marketable, may be more difficult
 to value accurately and may be more volatile than similar securities issued by a government entity. <br> Many
 transactions in the fixed-rate mortgage pass-through securities occur through the use of TBA transactions. TBA
 transactions are generally conducted in accordance with widely-accepted guidelines that establish commonly observed
 terms and conditions for execution, settlement and delivery. In a TBA transaction, the buyer and seller decided
 on general trade parameters, such as agency, settlement date, par amount and price. The actual pools delivered
 generally are determined two days prior to settlement date. Default by or bankruptcy of a counterparty to a
 TBA transaction would expose the
  Fund to possible loss because of adverse market action, expenses or delays in connection
 with the purchase or sale of the pools of mortgage pass-through securities specified in the TBA transaction.

• **Residential Mortgage-Backed Securities ("RMBSs").** RMBSs include securities that reflect an interest in, and are secured
 by, interest paid on loans for residential real property, such as mortgages, home-equity loans and subprime mortgages.
 Some RMBSs, called agency RMBSs, are guaranteed or supported by U.S. government agencies or by government
 sponsored enterprises, such as the Federal National Mortgage Association ("Fannie Mae") or the Federal Home

 are not guaranteed or supported by these government agencies or government sponsored enterprises. Residential
 loans may be prepaid at any time. Prepayments could reduce the yield received on the related issue of RMBS.
 RMBS are particularly susceptible to prepayment risk, as they generally do not contain prepayment penalties and a
 reduction in interest rates will increase the prepayments on the  RMBS, resulting in a reduction in yield to maturity for holders
 of such securities. <br> Residential
 mortgage loans in an issue of RMBS may be subject to various U.S. federal and state laws, public policies and
 principles of equity that protect consumers which, among other things, may regulate interest rates and other fees, require
 certain disclosures, require licensing of originators, prohibit discriminatory lending practices, regulate the use of consumer
 credit information, and regulate debt collection practices. In addition, a number of legislative proposals have been
 introduced in the United States at both the federal, state, and municipal level that are designed to discourage predatory
 lending practices. Violation of such laws, public policies, and principles may limit the servicer's ability to collect
 all or part of the principal or interest on a residential mortgage loan, entitle the borrower to a refund of amounts
 previously paid by it, or subject the servicer to damages and administrative enforcement. Any such violation could
 also result in cash flow delays and losses on the related issue of RMBS. Credit-related risk on RMBS arises from losses
 due to delinquencies and defaults by the borrowers in payments on the underlying mortgage loans and breaches by
 originators and servicers of their obligations under the underlying documentation pursuant to which the RMBS are issued.
 If a residential mortgage loan is in default, foreclosure of such residential mortgage loan may be a lengthy and difficult
 process, and may involve significant expenses. Furthermore, the market for defaulted residential mortgage loans
 or foreclosed properties may be very limited. The net proceeds obtained by the holder on a residential mortgage loan
 following the foreclosure on the related property may be less than the total amount that remains due on the loan. The
 prospect of incurring a loss upon the foreclosure of the related property may lead the holder of the residential mortgage
 loan to restructure the residential mortgage loan or otherwise delay the foreclosure process.

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• **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 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 and the rate of principal payments (including
 prepayments) on the related underlying mortgage assets. 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 in excess of that considered
 in pricing the securities 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. In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed
 to the interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased
 because of the characteristics of the principal portion to which they relate. 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

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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 the 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 ("IRS") occasionally challenges the tax-exempt status of the interest on particular municipal securities. If the IRS 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:

• **Anticipation** **Notes.** Tax, revenue or bond anticipation notes are issued by municipalities in expectation of future tax or other
 revenues that are payable from those taxes or revenues. Bond anticipation notes usually provide interim financing in
 advance of an issue of bonds or notes, the proceeds of which are used to repay the anticipation notes.

• **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.

• **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.

• **Municipal Lease Obligations.** Municipal lease obligations are issued by state and local governments and authorities to
 acquire land and a wide variety of equipment and facilities. These obligations typically are not fully backed by the municipality's
 credit and thus interest thereon may become taxable if the lease is assigned. If funds are not appropriated for
 the following year's lease payments, a lease may terminate with the possibility of default on the lease obligation.

• **Municipal Warrants.** Municipal
 warrants are essentially call options on municipal bonds. In exchange for a premium, municipal
 warrants give the purchaser the right, but not the obligation, to purchase a municipal bond in the future. The Fund may purchase
 a warrant to lock in forward supply in an environment where the current issuance of bonds is sharply
 reduced. Like options, warrants may expire worthless and they may have reduced liquidity.

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• **Refunded Bonds.** The Fund
 may invest in refunded municipal bonds. Refunded municipal bonds are tax-exempt bonds that
 have been refunded to a call date prior to the final maturity of principal, or, in the case of refunded municipal bonds
 commonly referred to as "escrowed-to-maturity bonds" ("ETMs"), to the final maturity of principal, and that remain
 outstanding in the municipal market. The payment of principal and interest of the refunded municipal bonds held
 by the Fund is funded
 from a designated escrow account that holds U.S. Treasury securities, obligations of the U.S. government
 (including its agencies and instrumentalities ("Agency Securities")) and/or other high-quality bonds. As the payment
 of principal and interest is generated from securities held in an escrow account established by the municipality and
 an independent escrow agent, the pledge of the municipality has been fulfilled, and the original pledge of revenue by
 the municipality is no longer in place. Refunded municipal bonds may be re-rated by a rating agency to an AAA/Aaa rating
 based on their backing by U.S. Treasury securities and/or Agency Securities. If a refunded bond loses its rating upon
 refunding, the Index Provider removes it from the Underlying Index. The escrow account securities pledged to pay the
 principal and interest of the refunded municipal bond do not guarantee the price movement of the bond before call
 or maturity. Issuers of municipal bonds refund in advance of maturity the outstanding higher cost debt and issue new,
 lower cost debt in the form of a refunding bond, placing the proceeds of the refunding bond into an escrow account
 to refund the older, higher cost debt. Investments in refunded municipal bonds may subject the
 Fund to credit risk,
 interest rate risk, liquidity risk, market risk and secured, partially secured and unsecured obligation risk. To the extent
 permitted by the SEC and the IRS, the
 Fund's investment in refunded municipal bonds backed by U.S. Treasury and
 Agency Securities in the manner described above, will, for purposes of any diversification tests applicable to the Fund, be considered
 an investment in the respective U.S. Treasury and Agency Securities. If a bond is issued to refund a municipal
 bond more than 90 days before the redemption of the refunded bond, the interest on the new bond, known as
 an advance refunding bond, will not be tax-exempt. This does not, however, impact the tax-exempt nature of the interest
 on the refunded bond.

• **Private Activity Bonds.** Private activity bonds are issued to finance, among other things, privately operated housing facilities,
 pollution control facilities, convention or trade show facilities, mass transit, airport, port or parking facilities and
 certain facilities for water supply, gas, electricity, sewage or solid waste disposal. Private activity bonds are also issued
 to privately held or publicly owned corporations in the financing of commercial or industrial facilities. The principal
 and interest on these obligations may be payable from the general revenues of the users of such facilities. They
 are not backed by the credit of any governmental or public authority.

• **Resource Recovery Obligations.** Resource recovery obligations are a type of municipal revenue obligation issued to build
 facilities such as solid waste incinerators or waste-to-energy plants. Usually, a private corporation will be involved and
 the revenue cash flow will be supported by fees or units paid by municipalities for use of the facilities. The viability of
 a resource recovery project, environmental protection regulations and project operator tax incentives may affect the value
 and credit quality of these obligations.

• **Revenue Obligations**.
 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. To the extent the Fund invests in investment company securities advised by the Manager, 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. In addition, the Fund is generally limited to selling 3% of its total voting stock to an investment company. However, the Fund may exceed these limits in reliance on a statutory exemption, the terms and conditions of an exemptive order from the SEC, or Rule 12d1-4 under the Investment Company Act. In each case, such investments are subject to various conditions, including limits on control and voting of acquired fund shares, required 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:

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• **ETFs.** The Fund may
 purchase shares of ETFs. ETFs trade like a common stock and passive ETFs usually represent a fixed portfolio
 of securities designed to track the performance and dividend yield of a particular domestic or foreign market index.
 Typically, the
 Fund would purchase passive ETF shares to obtain exposure to all or a portion of the stock or bond market.
 As a shareholder of an ETF, the
 Fund would be subject to its ratable share of the ETF's expenses, including its advisory
 and administration expenses. An investment in an ETF generally presents the same primary risks as an investment
 in a conventional mutual fund (i.e., one that is not exchange traded) that has the same investment objective,
 strategies, and policies. The price of an ETF can fluctuate within a wide range, and the
 Fund could lose money
 investing in an ETF if the prices of the securities owned by the ETF decline in value. In addition, ETFs are subject to
 the following risks that do not apply to conventional mutual funds: (1) the market price of the ETF's shares may trade at
 a discount or premium to their NAV per share; (2) an active trading market for an ETF's shares may not develop or be maintained;
 or (3) trading of an ETF's shares may be halted if the listing exchange's officials deem such action appropriate,
 the shares are de-listed from the exchange, or the activation of market-wide "circuit breakers" (which are tied
 to large decreases in stock prices) halts stock trading generally.

• **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), 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.

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**Redemption Risk** — The Fund may experience periods of heavy redemptions that could cause the Fund to sell assets at inopportune times at a loss or depressed value. The risk of loss is greater if redemption requests are frequent, occur in times of overall market turmoil or declining prices for the securities sold, or when the securities the Fund wishes to sell are illiquid. The sale of assets to meet redemption requests may create capital gains, which the Fund would then be required to distribute to shareholders. Redemption risk is greater to the extent that one or more investors or intermediaries control a large percentage of investments in the Fund, have short investment horizons, or have unpredictable cash flow needs. Additionally, during periods of heavy redemptions, the Fund may borrow funds from the interfund credit facility, or from a bank line of credit, which may increase costs. The ability or willingness of dealers and other institutional investors to buy or hold fixed-income securities or otherwise to "make a market" in debt securities has also been reduced. Heavy redemptions, whether by a few large investors or many smaller investors, could hurt the Fund's performance.

**Reliance on Corporate Management and Financial Reporting Risk** — The sub-advisor may select investments for the Fund on the basis of information and data made directly available to the sub-advisor by the issuers of securities or through sources other than the issuers such as collateral pool servicers. The sub-advisor is dependent upon the integrity of the management of these issuers and of such servicers and the financial and collateral performance reporting processes in general. Investors, including the Fund, can incur material losses as a result of corporate mismanagement and fraud resulting in accounting irregularities.

**Responsible Investing Considerations Risk** — The sub-advisor has adopted a Responsible Investment Policy (the "Responsible Investment Policy") to help ensure that risks and opportunities associated with environmental, social and governance ("ESG") matters are appropriately considered within the sub-advisor's investment management process. The sub-advisor adopts ESG integration for the purpose of (1) gaining a more holistic view of relevant investment risks; (2) understanding the potential drivers of performance; and (3) making better-informed decisions. Under the Responsible Investment Policy, the sub-advisor will, subject to the limitations described below, integrate the consideration of one or more ESG factors alongside other non-ESG factors (e.g., financial attributes), when making investment decisions. The Fund does not seek to implement a specific ESG, impact or sustainability strategy.

When performing an ESG assessment, the sub-advisor conducts a qualitative and/or quantitative assessment of relevant ESG factors that the sub-advisor believes may impact an investment's risk-return profile. While ESG factors can vary for each investment, they are generally related to the issuer's position on ESG issues. As part of this assessment, the sub-advisor has established a proprietary research framework to score certain issuers with respect to ESG attributes that may have a potential financial impact on the relevant investment ("Material ESG Factors"). Each scored issuer is assigned an environmental score, a social score, and a governance score, with the scoring based on whether the issuer is determined to be subject to material environmental, social, or governance risks that may negatively impact credit quality and/or valuations and/or whether the issuer is believed to not be sufficiently mitigating such risks. Each issuer's environmental, social and governance scores are aggregated into a composite score, reflecting the sub-advisor's overall ESG view of such issuer. Subject to its Responsible Investment Policy and the exceptions noted below, the sub-advisor seeks to assess the Material ESG Factors involving each investment made on an initial basis and, thereafter, as new material information regarding Material ESG Factors becomes known to the sub-advisor. Such assessments may prioritize those positions that are significant and where such assessments may have a material economic impact on client accounts.

The sub-advisor has determined that ESG factors would be expected to have no, a limited or an immaterial impact on the economics or valuation of certain asset class and investment types and that modifying the Fund's portfolio based on ESG factors may be inconsistent with the Fund's investment objective. In such cases, the sub-advisor generally will not perform an ESG assessment or otherwise take any action based on any ESG factors.

The sub-advisor generally will assess but not score issuers within certain sectors, such as sovereign debt, U.S. Treasury and emerging market securities. Additionally, the sub-advisor generally will not assess an issuer for ESG factors altogether if sufficient relevant or reliable information is not readily available. Further, investments in cash, cash equivalents and other similar investments; investments made for short-term purposes; commodities; equities; municipal securities; derivative instruments (irrespective of the reference asset or counter party); and indices (or their components), as well as investments made to obtain broad-based investment exposure or that are required by or integral to the Fund's investment strategies, are generally not assessed for ESG purposes.

**Senior Loans** — The Fund may invest in senior loans, which generally include variable or floating rate loans that hold a senior position in the capital structure of U.S. and foreign corporations, partnerships or other business entities. Under normal circumstances, senior loans have priority of claim ahead of other obligations of a borrower in the event of liquidation. Senior loans may be collateralized or uncollateralized. They pay interest at rates that float above, or are adjusted periodically based on, a benchmark that reflects current interest rates. In addition to the risks typically associated with debt securities, such as credit and interest rate risk, senior loans are also subject to the risk that a court could subordinate a senior loan, which typically holds a senior position in the capital structure of a borrower, to presently existing or future indebtedness or take other action detrimental to the holders of senior loans. In the event of an in court or out of court restructuring of a senior loan in which the Fund invests, the Fund

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may acquire (and subsequently sell) equity securities or exercise warrants that it receives. Senior loans usually have mandatory and optional prepayment provisions. If a borrower prepays a senior loan, the Fund will have to reinvest the proceeds in other senior loans or securities that may pay lower interest rates.

**Separately Traded Registered Interest and Principal Securities and Other Zero-Coupon Securities** — Separately traded registered interest and principal securities or "STRIPS" and other zero-coupon securities are securities that do not make regular interest payments prior to their maturity date or another specified date in the future. Instead, they are sold at a discount from their face value and accrue interest over the life of the bond. While interest payments are not made on such securities, holders of such securities are deemed to have received income ("phantom income") annually, notwithstanding that cash may not be received currently. The effect of owning instruments that do not make current interest payments is that a fixed yield is earned not only on the original investment but also, in effect, on all discount accretion during the life of the securities. Because they do not pay coupon income, the prices of STRIPS and zero-coupon securities can be very volatile when interest rates change, their values may fluctuate more than the value of similar securities that pay interest periodically, and they may be less liquid than similar securities that pay interest periodically. STRIPS are zero-coupon bonds issued by the U.S. Treasury.

The Fund accrues income with respect to these securities for federal income tax and accounting purposes prior to the receipt of cash payments. Further, to maintain its qualification for pass-through treatment under the federal tax laws, the Fund is required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid portfolio securities under disadvantageous circumstances in order to generate the cash to satisfy these distributions. The required distributions may result in an increase in the Fund's exposure to zero coupon securities.

**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.

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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 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 securities 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.

**Unrated Securities Risk** — Because the Fund may purchase securities that are not rated by any rating organization, the sub-advisor, after assessing their credit quality, may internally assign ratings to certain of those securities, in categories of those similar to those of rating organizations. Investing in unrated securities involves the risk that the sub-advisor may not accurately evaluate the security's comparative credit rating. To the extent that the Fund invests in unrated securities, the Fund's success in achieving its investment objectives may depend more heavily on the sub-advisor's credit analysis than if the Fund invested exclusively in rated securities. Less public information is typically available about unrated securities or issuers. Some unrated securities may not have an active trading market or may be difficult to value, which means the Fund might have difficulty selling them promptly at an acceptable price. Unrated securities may also be subject to greater liquidity risk and price volatility.

**U.S. Government Agency Securities** — U.S. Government agency securities are issued or guaranteed by the U.S. Government or its agencies or instrumentalities or sponsored enterprises. Some obligations issued by U.S. Government agencies and instrumentalities, such as those of the Government National Mortgage Association ("GNMA"), are supported by the full faith and credit of the U.S. Treasury; others, such as those of the Federal Home Loan Bank ("FHLB") or the Federal Farm Credit Bank ("FFCB"), by the right of the issuer to borrow from the U.S. Treasury; others, such as those of the Federal National Mortgage Association (''Fannie Mae''), Federal Home Loan Mortgage Corporation (''Freddie Mac''), by the discretionary authority of the U.S. Government

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to purchase certain obligations of the agency or instrumentality; and others, such as those of the Federal Farm Credit Bureau, 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, obligations of GNMA, FHLB, FFCB, Fannie Mae, Freddie Mac, the Federal Farm Credit Bureau, other U.S. Government agency obligations and repurchase agreements secured thereby. U.S. Government agency securities are subject to credit risk, interest rate risk and market risk.

**U.S. Government Securities Risk** — A security backed by the U.S. Treasury or the full faith and credit of the United States is guaranteed only as to the timely payment of interest and principal when held to maturity. The market prices for such securities are not guaranteed and will fluctuate. Additionally, circumstances could arise that would prevent the payment of interest or principal. This could result in losses to the Fund. U.S. Government securities are subject to credit risk, interest rate risk and market risk. The rising U.S. national debt may lead to adverse impacts on the value of U.S. government securities due to potentially higher costs for the U.S. government to obtain new financing.

**U.S. Treasury Obligations** — U.S. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics, and include bills (initial maturities of one year or less), notes (initial maturities between two and ten years), and bonds (initial maturities over ten years) issued by the U.S. Treasury. The prices of these securities (like all debt securities) change between issuance and maturity in response to fluctuating market interest rates and credit ratings. U.S. Treasury obligations are subject to credit risk and interest rate risk. The total amount of debt the Treasury is authorized to incur is subject to a statutory limit. Once the Treasury reaches the debt limit, Congress must raise, extend or otherwise modify the limit to enable the Treasury to incur additional debt to pay the obligations of the U.S. government, including principal and interest payments on certain U.S. Treasury obligations (such as Treasury bills, notes and bonds). Failure to, or potential failure to, increase the statutory debt limit could: increase the risk that the U.S. government defaults on payments on certain U.S. Treasury obligations; cause the credit rating of the U.S. government to be downgraded or increase volatility in both stock and bond markets; result in higher debt servicing payments by the U.S. government; reduce prices of Treasury securities; and/or increase the costs of certain kinds of debt. Treasury inflation-indexed securities are U.S. Government securities whose principal value is periodically adjusted according to the rate of inflation (by reference to the Consumer Price Index for All Urban Consumers ("CPI-U"), which is calculated by the Bureau of Labor Statistics a part of the Department of Labor). The CPI-U is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy. There can be no assurance that the CPI-U or any non-U.S. inflation index will accurately measure the real rate of inflation in the prices of goods and services. The three-month lag in calculating the CPI-U for purposes of adjusting the principal value of U.S. TIPS may give rise to risks under certain circumstances. The interest rate on TIPS is fixed at issuance, but over the life of the security this interest may be paid on an increasing or decreasing principal value that has been adjusted for inflation (but not below par value). Although repayment of the original principal upon maturity is guaranteed, the market value of TIPS is not guaranteed and will fluctuate. The values of TIPS generally fluctuate in response to changes in real interest rates, which are in turn tied to the relationship between nominal interest rates and the rate of inflation. If inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an increase in the value of TIPS. In contrast, if nominal interest rates were to increase at a faster rate than inflation, real interest rates might rise, leading to a decrease in the value of TIPS. If inflation is lower than expected during the period the Fund holds TIPS, the Fund may earn less on the TIPS than on a conventional bond. Because the coupon rate on TIPS is lower than fixed-rate Treasury Department securities, the CPI-U would have to rise at least to the amount of the difference between the coupon rate of the fixed-rate Treasury Department issues and the coupon rate of the TIPS, assuming all other factors are equal, in order for such securities to match the performance of the fixed-rate Treasury Department securities. If interest rates rise due to reasons other than inflation, (for example, due to changes in the currency exchange rates), investors in TIPS may not be protected to the extent that the increase is not reflected in the bonds' inflation measure. 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. Any increase in principal value of TIPS caused by an increase in the CPI is taxable in the year the increase occurs, even though the holder will not receive cash representing the increase at that time. As a result, the Fund could be required at times to liquidate other investments, including when it is not advantageous to do so, in order to satisfy its distribution requirements as a "regulated investment company." See "Tax Information." If the Fund invests in TIPS, it will be required to treat as original issue discount ("OID") any increase in the principal amount of the securities that occurs during the course of its taxable year. If the Fund purchases such securities that are issued in stripped form either as stripped bonds or coupons, it will be treated as if it had purchased a newly issued debt instrument having OID. Because the Fund is required to distribute substantially all of its net investment income (including accrued OID), its investment in either zero coupon bonds or TIPS may require it to distribute to shareholders an amount greater than the total cash income it actually receives. Accordingly, in order to make the required distributions, the Fund may be required to borrow or liquidate securities.

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**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 rate, the Secured Overnight Financing Rate ("SOFR"), or a 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.

**Variable Rate Auction and Residual Interest Obligations** — Variable rate auction and residual interest obligations are created when an issuer or dealer separates the principal portion of a long-term, fixed-rate municipal bond into two long-term, variable-rate instruments. The interest rate on one portion reflects short-term interest rates, while the interest rate on the other portion is typically higher than the rate available on the original fixed-rate bond.

**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 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.

Pursuant to Rule 18f-4 under the Investment Company Act, 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-advisor's 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 Prospectus, the Fund may (except where otherwise indicated):

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.

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.

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.

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 acquiring 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.

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.

**INVESTMENT RESTRICTIONS**

**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 outstanding shares of the Fund are present or represented at the shareholders' meeting or (b) more than 50% of the shares of the Fund.

The Fund may not:

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.

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).

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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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 with respect to portfolio securities.

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.

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 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.

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.

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 or guaranteed by the U.S. Government,
 its agencies or instrumentalities; and (ii) tax-exempt securities issued by municipalities or their agencies and
 authorities.

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 (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 set forth in (8) above, 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.

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

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

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 Prospectus, the other investment policies described in this SAI are not fundamental and may be changed by approval of the Trustees.

**TEMPORARY OR DEFENSIVE INVESTMENTS**

In times of unstable or adverse market, economic, political or other conditions, where the Manager or the sub-advisor believes 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-advisor.

**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 the sub-advisor's investment outlook.

**DISCLOSURE OF PORTFOLIO HOLDINGS**

The Fund publicly discloses portfolio holdings information as follows:

1. a
 complete list of holdings for the Fund on an annual and semi-annual basis within seventy days of the end of each fiscal
 semi-annual period in publicly available filings of Form  N-CSR with the SEC (available on the SEC's website at www.sec.gov)
 and on the Fund's website (www.americanbeaconfunds.com);

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);

3. a
 complete list of holdings for the Fund as of the end of each calendar quarter on the Fund's website (www.americanbeaconfunds.com)
 approximately sixty days after the end of the calendar quarter; and

4. the
 ten largest holdings for  the Fund as of the end of each calendar quarter on the Fund's website (www.americanbeaconfunds.com)
 and in sales materials approximately fifteen days after the end of the calendar quarter.

Public disclosure of the Fund's holdings on the website and in sales materials may be delayed when an investment manager informs the Fund that such disclosure could be harmful to the Fund. In addition, individual holdings may be omitted from website and sales material disclosure, when such omission is deemed to be in the Fund's best interest. Disclosure of the Fund's ten largest holdings may exclude U.S. Treasury securities and cash equivalent assets, although such holdings will be included in the Fund's complete list of holdings.

**Disclosure of Nonpublic Holdings**

Occasionally, certain interested parties — including individual investors, institutional investors, intermediaries that distribute shares of the Fund, third-party service providers, rating and ranking organizations, 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 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

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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.

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 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, whose affiliates may also have access to such information:

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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 | Securities lending agent for Funds that participate in securities lending, Fund's custodian and foreign custody manager, sub-administrator, Fund administration service provider, and foreign sub-custodian | Complete list on intraday basis with no lag |
| KPMG International | Service provider to State Street | Complete list on annual basis with lag |
| PricewaterhouseCoopers LLP | Fund's independent registered public accounting firm | Complete list on annual basis with no lag |
| FactSet Research Systems, Inc. | Performance and portfolio analytics reporting for the Manager | Complete list on daily basis with no lag |
| Bloomberg, L.P. | Performance and portfolio analytics reporting | Complete list on daily basis 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 in the ordinary course of business. 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. The Manager or sub-advisor 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.

The Fund has ongoing arrangements to provide periodic holdings information to certain organizations that publish ratings and/or rankings for the Fund or that redistribute the Fund's holdings to financial intermediaries to facilitate their analysis of the Fund. The Fund has determined that disclosure of holdings information to such organizations fulfills a legitimate business purpose and is in the best interest of shareholders, as it provides existing and potential shareholders with an independent basis for evaluating the Fund in comparison to other mutual funds. As of the date of this SAI, all such organizations receive holdings information after it has been made public on the Fund's website.

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:

1. Recipients
 of portfolio holdings information must agree in writing to keep the information confidential until it has been posted
 to the Fund's website and not to trade based on the information;

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

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

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

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

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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 the sub-advisor(s) from making such disclosures to their clients.

**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 does not intend 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 Commonwealth of Massachusetts as well as the stated policies of the Fund. The Board oversees the Trust's officers and service providers, including 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 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.

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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, 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.

*Board Structure and Related Matters*

All but one member of the Board are Independent Trustees. Douglas A. Lindgren, an Independent Trustee, serves as Chair of the Board. The 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 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 standing 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 whether to approve the Fund's management agreement with the Manager and, as applicable, its investment advisory agreement(s) with its investment advisor(s), while specific matters related to oversight of the Fund's independent auditors have been delegated by the Board to its Audit and Compliance Committee. 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 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 27 series within the American Beacon Funds, 1 series within the American Beacon Institutional Funds Trust, and 4 series within the American Beacon Select Funds. The same persons who constitute the Board of the Trust also constitute the Board of the American Beacon Institutional Funds Trust and the American Beacon Select Funds and each Trustee oversees the Trusts' combined 32 series.

The Board holds five (5) regularly scheduled meetings each year. The Board may hold special meetings, as needed, either in person or by videoconference or telephone, to address matters arising between regular meetings. The Independent Trustees also conduct executive sessions without the presence of management personnel, including at least quarterly in a session at which no Trustees who are interested persons or management are present, and may hold special meetings, as needed, either in person or by videoconference or telephone.

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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, and shareholders may contact them directly, individually or collectively as a Board, at such address. Each Trustee serves for an indefinite term or until his or her removal, resignation, or retirement.\*

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of** **Birth** **\*** | **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>(1954)\*\* | Trustee since 2008 | Trustee since 2017 | **Capital Formation and Currency Solutions, Mesirow Financial Administrative** **Corporation:** Managing Director (2016-Present);<br> **American Beacon Sound Point Enhanced Income Fund:** Trustee (2018–2021);<br> **American Beacon Apollo Total Return Fund:** Trustee (2018–2021) |
| **NON-INTERESTED** **TRUSTEES** |  |  |  |
| Gilbert G. Alvarado<br>(1969) | Trustee since 2015 | Trustee since 2017 | **The Conrad Prebys Foundation:** Chief Financial Officer (2022-Present);<br> **Sierra Health Foundation** (health conversion private foundation): Executive Vice President & CCO (2022); Senior Vice President & CFO (2012-2022); CFO (2006-2011);<br> **Sierra Health Foundation - Center for Health Program Management** (California public benefit corporation): Senior Vice President & CFO (2012- 2022);<br> **SJVIIF, LLC (impact investment fund):** President (2018-2022);<br> **American Beacon Sound Point Enhanced Income Fund**: Trustee (2018–2021);<br> **American Beacon Apollo Total Return Fund**: Trustee (2018–2021). |
| Gerard J. Arpey<br>(1958) | Trustee since 2012 | Trustee since 2017 | **Emerald Creek Group** (private equity firm): Partner (2011-Present); S.C. Johnson & Son, Inc. (privately held company): Director (2008-present);<br> **The Home Depot, Inc.**: Director (2015-Present);<br> **American Beacon Sound Point Enhanced Income Fund**: Trustee (2018–2021);<br> **American Beacon Apollo Total Return Fund**: Trustee (2018–2021). |
| Claudia A. Holz<br>(1957) | Trustee since 2018 | Trustee since 2018 | **Blue Owl Capital, Inc.**: Independent Director (2021-Present);<br> **American Beacon Sound Point Enhanced Income Fund**: Trustee (2018–2021);<br> **American Beacon Apollo Total Return Fund**: Trustee (2018–2021) |
| Douglas A. Lindgren<br>(1961) | Chair since 2025<br>Trustee since 2018 | Chair since 2025<br>Trustee since 2018 | **JLL Income Property Trust**: Director (2022-Present);<br> **American Beacon Sound Point Enhanced Income Fund**: Trustee (2018–2021);<br> **American Beacon Apollo Total Return Fund**: Trustee (2018–2021). |

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of** **Birth** **\*** | **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** |
| Barbara J. McKenna<br>(1963) | Trustee since 2012 | Trustee since 2017 | **Longfellow Investment Management Company**: Managing Principal (2005-Present, President since 2009);<br> **External Diversity Council of the Federal Reserve Bank of Boston**: Member (2015-2023);<br> **United States Tennis Association**: Board Advisor (2021-Present);<br> **American Beacon Sound Point Enhanced Income Fund**: Trustee (2018–2021);<br> **American Beacon Apollo Total Return Fund**: Trustee (2018–2021). |
| Janet C. Smith\*\*\*<br>(1965) | Trustee since 2025 | Trustee since 2025 | **Putnam Investments, LLC and Putnam Management:** Head of Fund Administration Services (2011–2024);<br> **Putnam Funds Complex (Approximately 105 Funds):** Vice President, Principal Financial Officer (2016-2024), Principal Accounting Officer and Assistant Treasurer (2008-2024), Putnam Ombudsman (2016-2024). |
| Paul Zemsky<br>(1962) | Trustee since 2025 | Trustee since 2025 | **Focus Consulting Group:** Consulting Partner: (2024-Present);<br> **ML Tech (Crypto Fund-of-Funds)**: Strategic Advisor: (2024-Present); <br> **Voya Investment Management:** Senior Managing Director, Chief Investment Officer, Multi-Asset Strategies and Solutions (2007–2023); Head of Derivative Strategy and Risk Management, General Account (2005-2006). |

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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.

\*\*\* Prior to July 1, 2024, Ms. Smith served as an officer of certain affiliates of Putnam Investment Management, LLC ("Putnam"), and as Vice President, Principal Financial Officer, Principal Accounting Officer and Assistant Treasurer of various registered open-end investment companies for which Putnam serves as investment adviser ("Putnam Funds Complex"). On January 1, 2024, Putnam was acquired (the "Putnam Acquisition") by Franklin Resources, Inc. ("Franklin"), following which it is under common control with Brandywine Global Investment Management, LLC ("Brandywine"), an investment adviser to certain series of the Trust. In addition, Jane E. Trust has served on the Boards of Trustees of the Putnam Funds Complex since January 2024. Ms. Smith served as an officer of the Putnam Funds Complex prior to July 1, 2024. Ms. Trust holds and held positions at the following entities, which are under common control with Brandywine. Based on publicly available information, Ms. Trust has served as Senior Vice President, Fund Board Management at Franklin Templeton since 2020; as President and Chief Executive Officer of Franklin Templeton Fund Advisor, LLC, and officer and/or trustee/director of its associated funds since 2015; as Senior Managing Director of Legg Mason & Co., LLC ("Legg Mason") from 2018 to 2020; as Managing Director of Legg Mason from 2016 to 2018; and as Senior Vice President of Franklin Templeton Fund Advisor, LLC in 2015. In connection with the Putnam Acquisition, Ms. Smith sold her Class B shares of a Putnam affiliate, with a value of approximately $683,000, to a subsidiary of Franklin. In connection with this sale, Ms. Smith may be entitled to certain contingent premium payments depending on the achievement of certain financial metrics, in an amount not to exceed approximately $186,000. Ms. Smith is a participant in a Deferred Executive Compensation Plan relating to her time at Putnam, pursuant to which she will receive approximately $520,000, which will be paid over time by a Franklin affiliate as a result of the Putnam Acquisition.

In addition to the information set forth in the table 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 executive 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 nonprofit 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.

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.

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.

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, where she led audits of large public investment company complexes and held several management roles in the firm's New York and national offices, and has since had multiple years of service as a Trustee.

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

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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.

Janet C. Smith: Ms. Smith has extensive experience in the investment management industry, organizational management experience as a member of senior management, service as a senior officer of an investment manager, and as an officer of registered investment companies.

Paul Zemsky: Mr. Zemsky has extensive experience in the investment management industry, organizational management experience as a member of senior management, service as a director and chief investment officer of an investment manager, and as a portfolio manager to registered investment companies.

*Committees of the Board*

The Trust has an Audit and Compliance Committee ("Audit Committee"). The Audit Committee consists of Mses. Holz (Chair) and Smith and Mr. Arpey, each of whom are Independent Trustees. Mr. Lindgren, 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 purposes 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 Audit 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 (and related fee arrangements) of the Trust's independent auditors to perform annual audit services for the Fund and certain non-audit services for the Fund or certain affiliated parties 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"); (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; and (f) to assist the Board with the aspects of risk oversight of the Trust that are relevant to the Audit Committee, including, but not limited to, valuation, operational, and compliance risks. The Audit Committee met four (4) times during the fiscal year ended August 31, 2025.

The Trust has a Nominating and Governance Committee ("Nominating Committee") that is comprised of Messrs. Arpey (Chair), and Lindgren, each of whom are Independent Trustees . As set forth in its charter, the Nominating Committee's primary purposes are: (a) to make recommendations regarding the nomination of 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 and of the chairs of such committees; (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; (h) to consider and make recommendations relating to the compensation of Independent Trustees; (i) to assist the Board with the aspects of risk oversight of the Trusts that are relevant to the Nominating Committee, including, but not limited to, the stewardship and overall reputation of the Trusts; (j) to coordinate and supervise an annual self-evaluation by the Board of the performance of the Board and its various committees; (k) to assist the Board in monitoring and, as it deems appropriate, implementing practices that are designed to promote diversity and inclusion within the Board's membership and within the workforces of the Trusts' primary service providers and vendors; and (l) to assist the Board in coordinating with legal counsel to the Trusts and their independent Board members with respect to staffing matters, including, when applicable, succession planning with respect to senior attorneys engaged in these representations. 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 and any procedures set forth therein. The Nominating and Governance Committee met four (4) times during the fiscal year ended August 31, 2025.

The Trust has an Investment Committee that is comprised of Messrs. Alvarado (Chair), Duffy and Zemsky, and Ms. McKenna. Mr. Lindgren, 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 purposes are: (a) to review the short- and long-term investment performance of the Manager and each of the designated sub-advisors to the Fund; (b) to review 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; (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; and (f) to assist the Board with the aspects of risk oversight of the Trust that are relevant to the Investment Committee, including, but not limited to counterparty, investment, liquidity and derivatives risks. The Investment Committee met four (4) times during the fiscal year ended August 31, 2025.

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*Trustee Ownership in the Fund*

As of the calendar year ended December 31, 2024, none of the Trustees owned equity securities of the Fund. The following tables show the amount of equity securities owned in the American Beacon Funds Complex by the Trustees as of the calendar year ended December 31, 2024. Ms. Smith and Mr. Zemsky became Trustees on August 18, 2025.

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| | |
|:---|:---|
|  | **INTERESTED TRUSTEE** |
| **American Beacon Fund** | **Duffy** |
| American Beacon DoubleLine Select Income Fund |  |
| **Aggregate Dollar Range of Equity Securities in all** **Trusts (** **30 Funds as of** **December 31, 2024)** | Over $100,000 |

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|:---|:---|:---|:---|:---|:---|:---|:---|
| **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** | **Arpey** | **Holz** | **Lindgren** | **McKenna** | **Smith** | **Zemsky** |
| American Beacon DoubleLine Select Income Fund |  |  |  |  |  |  |  |
| **Aggregate Dollar Range of Equity Securities in all** **Trusts (** **30 Funds as of** **December 31, 2024)** | 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 $150,000; (2) meeting attendance fee (for attendance in person or via electronic means) of (a) $12,000 for in-person attendance, or $5,000 for attendance by electronic means, 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 Board meeting held by electronic means; and (3) reimbursement of reasonable expenses incurred in attending Board meetings, Committee meetings, and relevant educational seminars. For this purpose, the Board considers attendance at regular meetings held by 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 his service as Board Chair, Mr. Lindgren receives an additional annual retainer of $50,000. Although he attends several committee meetings at each quarterly Board meeting, he receives a single $2,500 fee each quarter for his 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 estimated compensation (excluding reimbursements) that will be paid by the Trusts to each Trustee for the period from February 9, 2026 the Fund's anticipated commencement of operations, through August 31, 2026. | The following table shows estimated compensation (excluding reimbursements) that will be paid by the Trusts to each Trustee for the period from February 9, 2026 the Fund's anticipated commencement of operations, through August 31, 2026. | The following table shows estimated compensation (excluding reimbursements) that will be paid by the Trusts to each Trustee for the period from February 9, 2026 the Fund's anticipated commencement of operations, through August 31, 2026. |
| **Name of Trustee** | **Aggregate Compensation From the Trust** | **Total Compensation From the Trusts** |
| **INTERESTED TRUSTEE** |  |  |
| Eugene J. Duffy | $155048 | $168000 |
| **NON-INTERESTED TRUSTEES** |  |  |
| Gilbert G. Alvarado | $172352 | $186750 |
| Gerard J. Arpey | $164738 | $178500 |
| Claudia A. Holz | $172352 | $186750 |
| Douglas A. Lindgren | $192425 | $208500 |
| Barbara J. McKenna | $155048 | $168000 |
| Janet C. Smith | $155048 | $168000 |
| Paul Zemsky | $155048 | $168000 |

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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"). 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. None of the current Trustees are Eligible Trustees.

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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, four individuals who retired from the Board and accrued retirement benefits for periods prior to September 12, 2008, have assumed Trustee Emeritus status. Three individuals and their spouses receive annual flight benefits of up to $40,000 combined, on a tax-grossed up basis, on American Airlines. One individual receives an annual retainer of $20,000 from the Trusts in lieu of flight benefits.

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**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 and Year of** **Birth** | **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** |  |  |  |
| Gregory Stumm<br>(1981) | President<br>since June 2024<br> Vice President<br>2022-2024 | President<br>since June 2024<br> Vice President<br>2022-2024 | **American Beacon Advisors, Inc.:** Director (June 2024-Present), President (June 2024-Present), Chief Executive Officer (June 2024-Present), Senior Vice President (2022-2024) <br> **National Investment Services of America, LLC:** Director (2024-Present) <br> **Resolute Acquisition, Inc.:** Director (June 2024-Present), President (June 2024-Present), Chief Executive Officer (June 2024-Present), Senior Vice President (2022-2024) <br> **Resolute Topco, Inc.:** Director (June 2024-Present), President (June 2024-Present), Chief Executive Officer (June 2024-Present) <br> **Resolute Investment Managers, Inc.:** Director (June 2024-Present), President (June 2024-Present), Chief Executive Officer (June 2024 - Present), Senior Vice President (2022-2024) <br> **Resolute Investment Services, Inc.:** Director (June 2024-2025), President (June 2024-2025), Chief Executive Officer (June 2024-2025), Senior Vice President, (2022-2024) <br> **Resolute Investment Distributors, Inc.:** President (2024-Present), Chief Executive Officer (2024-Present), Director (2022-Present), Senior Vice President (2022-2024) <br> **RSW Investments Holdings LLC:** Director (2024-Present) <br> **Shapiro Capital Management, LLC:** Director (2024-Present) <br> **SSI Investment Management, LLC:** Director (2024-Present) |
| Sonia L. Bates<br>(1956) | Principal Accounting Officer and Treasurer<br>since 2021 | Principal Accounting Officer and Treasurer<br>since 2021 | **American Beacon Advisors, Inc.:** Assistant Treasurer (2023-Present)<br> **American Beacon Apollo Total Return Fund:** Assistant Treasurer (2019-2021), Principal Accounting Officer and Treasurer (2021)<br> **American Beacon Funds:** Assistant Treasurer (2011-2021)<br> **American Beacon Institutional Funds:** Trust Assistant Treasurer (2017-2021)<br> **American Beacon Cayman Managed Futures Strategy Fund, Ltd.:** Treasurer (2022-Present)<br> **American Beacon Cayman Multi-Alternatives Company, Ltd.:** Treasurer (2023-Present)<br> **American Beacon Cayman TargetRisk Company, Ltd.:** Treasurer (2022-Present) and Assistant Treasurer (2018-2022)<br> **American Beacon Cayman Trend Company, Ltd.:** Treasurer (2023-Present)<br> **American Beacon Select Funds**: Assistant Treasurer (2011-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Assistant Treasurer (2018-2021), Principal Accounting Officer and Treasurer (2021)<br> **American Private Equity Management, L.L.C.:** Assistant Treasurer (2012-2024)<br> **Resolute Investment Services, Inc:** Vice President, Fund and Tax Reporting (2023-2025), Director, Fund and Tax Reporting (2011-2023) |

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of** **Birth** | **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** |
| Rosemary K. Behan<br>(1959) | Vice President, Secretary and Chief Legal Officer<br>since 2006 | Vice President, Secretary and Chief Legal Officer<br>since 2017 | **Alpha Quant Advisors, LLC:** Secretary and General Counsel (2016-2020)<br> **American Beacon Advisors, Inc.:** Senior Vice President (2021-Present), Vice President (2006-2021), Secretary and General Counsel (2006-Present)<br> **American Beacon Apollo Total Return Fund:** Vice President, Secretary, and Chief Legal Officer (2018-2021)<br> **American Beacon Cayman Managed Futures Strategy Fund, Ltd.:** Secretary (2014-Present)<br> **American Beacon Cayman Multi-Alternatives Company, Ltd.:** Secretary (2023-Present) <br> **American Beacon Cayman TargetRisk Company, Ltd:** Secretary (2018-Present)<br> **American Beacon Cayman Trend Company, Ltd.:** Secretary (2023-Present)<br> **American Beacon Sound Point Enhanced Income Fund:** Vice President, Secretary, and Chief Legal Officer (2018-2021)<br> **American Private Equity Management, LLC:** Secretary (2008-2024)<br> **Continuous Capital, LLC:** Vice President and Secretary (2018-2022)<br> **Green Harvest Asset Management, LLC:** Secretary (2019-2021)<br> **Resolute Acquisition, Inc.:** Secretary (2015-Present)<br> **Resolute Investment Distributors, Inc.:** Secretary (2017-Present) <br> **Resolute Investment Holdings, LLC:** Secretary (2015-2025)<br> **Resolute Investment Managers, Inc.:** Senior Vice President (2021-Present), Vice President (2015-2021), Secretary and General Counsel (2015-Present)<br> **Resolute Investment Services, Inc.:** Senior Vice President (2021-2025), Vice President (2017-2025), Secretary and General Counsel (2017-2025)<br> **Resolute Topco, Inc.:** Secretary (2015-Present) |
| Paul B. Cavazos<br>(1969) | Vice President<br>since 2016 | Vice President<br>since 2017 | **American Beacon Advisors, Inc.:** Chief Investment Officer and Senior Vice President (2016-Present)<br> **American Beacon Apollo Total Return Fund:** Vice President (2018-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Vice President (2018-2021)<br> **American Private Equity Management, L.L.C.:** Vice President (2017-2024) |
| Rebecca L. Harris<br>(1966) | Vice President<br>2022-May 2024, June 2024-Present<br> President<br>May 2024-June 2024<br> Assistant Secretary<br>2010-2022 | Vice President<br>2022-2024, June 2024-Present<br> President<br>May 2024-June 2024<br> Assistant Secretary<br>2017-2022 | **Alpha Quant Advisors, LLC.:** Vice President (2016-2020)<br> **American Beacon Advisors, Inc.:** Chief Operating Officer (June 2024-Present), Senior Vice President (2021-May 2024, June 2024-Present), Director (May-June 2024), President (May-June 2024), Chief Executive Officer (May-June 2024), Vice President (2011-2021)<br> **American Beacon Apollo Total Return Fund:** Assistant Secretary (2018-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Assistant Secretary (2018-2021)<br> **Continuous Capital, LLC:** Vice President (2018-2022), Director (2022)<br> **National Investment Services of America, LLC:** Director (2022-Present)<br> **Resolute Acquisition, Inc.:** Senior Vice President (January 2024-May 2024, June 2024-Present), Director (May 2024-June 2024), President May 2024-June 2024), Chief Executive Officer (May 2024-June 2024)<br> **Resolute Investment Managers, Inc.:** Chief Operating Officer (June 2024-Present), Senior Vice President (2021-May 2024, June 2024-Present), Director (May-June 2024), President (May-June 2024), Chief Executive Officer (May-June 2024), Vice President (2017-2021)<br> **Resolute Investment Services, Inc.:** Senior Vice President (2021-May 2024, June 2024-2025), Director (May-June 2024), President (May-June 2024), Chief Executive Officer (May-June 2024), Vice President (2017-2021) <br> **Resolute Topco, Inc.:** Senior Vice President (January 2024-May 2024, June 2024-Present), Director (May 2024-June 2024), President (May 2024-June 2024), Chief Executive Officer (May 2024-June 2024)<br> **RSW Investments Holdings LLC:** Director (2022-Present)<br> **Shapiro Capital Management LLC:** Director (2022-Present)<br> **SSI Investment Management LLC:** Director (2022-Present) |

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of** **Birth** | **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** |
| Melinda G. Heika<br>(1961) | Vice President<br>since 2021 | Vice President<br>since 2021 | **Alpha Quant Advisors, LLC:** Treasurer and CFO (2016-2020)<br> **American Beacon Advisors, Inc.:** Senior Vice President (2021-Present), Treasurer and CFO (2010-Present)<br> **American Beacon Apollo Total Return Fund:** Principal Accounting Officer and Treasurer (2018-2021), Vice President (2021)<br> **American Beacon Cayman Managed Futures Strategy Fund, Ltd.:** Director (2014-Present), Vice President (2022-Present) and Treasurer (2014-2022), <br> **American Beacon Cayman Multi-Alternatives Company, Ltd.:** Director and Vice President (2023-Present)<br> **American Beacon Cayman TargetRisk Company, Ltd.:** Director and Vice President (2022-Present), and Treasurer (2018-2022)<br> **American Beacon Cayman Trend Company, Ltd.:** Director and Vice President (2023-Present)<br> **American Beacon Funds:** Principal Accounting Officer and Treasurer (2010-2021)<br> **American Beacon Institutional Funds Trust:** Principal Accounting Officer and Treasurer (2017-2021)<br> **American Beacon Select Funds:** Principal Accounting Officer and Treasurer (2010-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Principal Accounting Officer and Treasurer (2018-2021), Vice President (2021)<br> **American Private Equity Management, L.L.C.:** Treasurer (2012-2024)<br> **Continuous Capital, LLC:** Treasurer (2018-2022) <br> **Resolute Acquisition, Inc.:** Treasurer (2015-Present)<br> **Resolute Investment Holdings, LLC:** Treasurer (2015-2025)<br> **Resolute Investment Managers, Inc.:** Senior Vice President (2021-Present), Treasurer and CFO (2017-Present)<br> **Resolute Investment Services, Inc.:** Senior Vice President (2021-2025), Treasurer and CFO (2017-2025)<br> **Resolute Topco, Inc.:** Treasurer (2015-Present) |
| Terri L. McKinney<br>(1963) | Vice President<br>since 2010 | Vice President<br>since 2017 | **Alpha Quant Advisors, LLC:** Vice President (2016-2020)<br> **American Beacon Advisors, Inc.:** Senior Vice President, (2021-Present) Vice President, (2009-2021)<br> **American Beacon Apollo Total Return Fund:** Vice President (2018-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Vice President (2018-2021)<br> **Continuous Capital, LLC**: Vice President (2018-2022)<br> **Resolute Investment Managers, Inc.:** Senior Vice President (2021-Present), Vice President (2017-2021) <br> **Resolute Investment Services, Inc.:** Senior Vice President (2021-2025), Vice President (2018-2025)<br> **Resolute Investment Distributors, Inc.:** Director (2024-Present), Vice President (2024-Present) |
| Samuel J. Silver<br>(1963) | Vice President<br>since 2011 | Vice President<br>since 2017 | **American Beacon Advisors, Inc.:** Vice President (2011-Present), Chief Fixed Income Officer (2016-Present)<br> **American Beacon Apollo Total Return Fund:** Vice President (2018-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Vice President (2018-2021)  |

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of** **Birth** | **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>(1971) | Chief Compliance Officer<br>since 2004<br>Assistant Secretary<br>since 1999 | Chief Compliance Officer and Assistant Secretary<br>since 2017 | **Alpha Quant Advisors, LLC:** Chief Compliance Officer (2016-2019), Vice President (2016-2020)<br> **American Beacon Advisors, Inc.:** Chief Compliance Officer (2004-Present), Vice President (2019-Present)<br> **American Beacon Apollo Total Return Fund:** Chief Compliance Officer and Assistant Secretary (2018-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Chief Compliance Officer and Assistant Secretary (2018-2021)<br> **American Private Equity Management, LLC:** Chief Compliance Officer (2012-2024)<br> **Continuous Capital, LLC.:** Chief Compliance Officer (2018-2019), Vice President (2018-2022)<br> **Green Harvest Asset Management, LLC:** Chief Compliance Officer (2019-2021)<br> **Resolute Investment Distributors, Inc.:** Vice President (2017-Present)<br> **Resolute Investment Managers, Inc.:** Vice President (2017-Present)<br> **Resolute Investment Services, Inc.:** Vice President (2019-2025)<br> **RSW Investments Holdings, LLC:** Chief Compliance Officer (2019-Present)<br> **Shapiro Capital Management LLC**: Chief Compliance Officer (2024-Present) |
| Shelley D. Abrahams<br>(1974) | Assistant Secretary<br>since 2008 | Assistant Secretary<br>since 2017 | **American Beacon Advisors, Inc.:** Assistant Secretary (April 2024-Present)<br> **American Beacon Apollo Total Return Fund:** Assistant Secretary (2018-2021)<br> **American Beacon Cayman Managed Futures Strategy Fund, Ltd.:** Assistant Secretary (2022-Present)<br> **American Beacon Cayman Multi-Alternatives Company, Ltd.:** Assistant Secretary (2023-Present) <br> **American Beacon Cayman TargetRisk Company, Ltd:** Assistant Secretary (2022-Present)<br> **American Beacon Cayman Trend Company, Ltd.:** Assistant Secretary (2023-Present) <br> **American Beacon Sound Point Enhanced Income Fund:** Assistant Secretary (2018-2021) <br> **Resolute Investment Managers, Inc.:** Assistant Secretary (April 2024-Present)<br> **Resolute Investment Services, Inc.:** Corporate Governance Manager (2023-2025), Assistant Secretary (2024-2025), Senior Corporate Governance & Regulatory Specialist (2020-2023), Corporate Governance & Regulatory Specialist (2017-2020) |
| Shelley L. Dyson<br>(1969) | Assistant Treasurer<br>since 2021 | Assistant Treasurer<br>since 2021 | **American Beacon Apollo Total Return Fund:** Assistant Treasurer (2021)<br> **American Beacon Cayman Managed Futures Strategy Fund, Ltd.:** Assistant Treasurer (2022-Present)<br> **American Beacon Cayman Multi-Alternatives Company, Ltd.:** Assistant Treasurer (2023-Present) <br> **American Beacon Cayman TargetRisk Company, Ltd:** Assistant Treasurer (2022-Present) <br> **American Beacon Cayman Trend Company, Ltd.:** Assistant Treasurer (2023-Present)<br> **American Beacon Sound Point Enhanced Income Fund:** Assistant Treasurer (2021)<br> **Resolute Investment Services, Inc.:** Fund Tax Director (2024-2025), Fund Tax Manager (2020-2024), Manager, Tax (2014-2020) |
| Teresa A. Oxford<br>(1958) | Assistant Secretary<br>since 2015 | Assistant Secretary<br>since 2017 | **Alpha Quant Advisors, LLC:** Assistant Secretary (2016-2020)<br> **American Beacon Advisors, Inc.:** Deputy General Counsel (2024-Present), Assistant Secretary (2015-Present), Associate General Counsel (2015-2024)<br> **American Beacon Apollo Total Return Fund:** Assistant Secretary (2018-2021)<br> **American Beacon Sound Point Enhanced Income Fund:** Assistant Secretary (2018-2021)<br> **Continuous Capital, LLC.:** Assistant Secretary (2020-2022) <br> **Resolute Investment Distributors, Inc.:** Assistant Secretary (2018-2021), (2024-Present)<br> **Resolute Investment Managers, Inc.:** Deputy General Counsel (2024-Present), Assistant Secretary (2017-Present), Associate General Counsel (2017-2024)<br> **Resolute Investment Services, Inc:** Deputy General Counsel (2024-2025), Assistant Secretary (2018-2025), Associate General Counsel (2018-2024) |

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**CODE OF ETHICS**

The Manager, the Trust, the Distributor, and the sub-advisor 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.

**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-advisor with respect to the Fund's assets under the sub-advisor's management. The Trust has adopted a Proxy Policy that governs proxy voting by the Manager and sub-advisor, including procedures to address potential conflicts of interest between the Fund's shareholders and the Manager, the sub-advisor 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 Proxy Policy. The sub-advisor's 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 will be available as of August 31 of each year without charge on the Fund's website, on the SEC's website at http://www.sec.gov or upon request by calling 1-800-967-9009. 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. As of the date of this SAI, there are no shareholders of the Fund.

**INVESTMENT ADVISORY AGREEMENT**

The Fund's sub-advisor is listed below with information regarding its 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-advisor may be considered affiliates of the Fund.

DoubleLine Capital LP ("DoubleLine Capital"), 2002 N. Tampa Street, Suite 200, Tampa, FL 33602, is a registered investment advisor and serves as the Sub-Advisor to the Fund. DoubleLine Capital was organized in 2009 as a Delaware limited liability company and was converted into a Delaware limited partnership on December 23, 2009. As of May 31, 2025, DoubleLine Capital had approximately $89.7 billion in assets under management.

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| | | |
|:---|:---|:---|
| **DoubleLine Capital LP ("DoubleLine Capital")** | **DoubleLine Capital LP ("DoubleLine Capital")** | **DoubleLine Capital LP ("DoubleLine Capital")** |
| **Controlling Person/Entity** | **Basis of Control** | **Nature of Controlling Person/Entity's Business** |
| DoubleLine Management LP | Limited Partner | Financial Services |
| DoubleLine Capital GP LLC | General Partner of DoubleLine Management LP | Financial Services |
| Jeffrey Edward Gundlach | Greater than 25% Ownership of DoubleLine Management LP | Financial Services |

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The Trust, on behalf of the American Beacon DoubleLine Select Income Fund, and the Manager have entered into an Investment Advisory Agreement with DoubleLine Capital pursuant to which the Fund has agreed to pay DoubleLine Capital an annualized sub-advisory fee that is calculated and accrued daily based on the Fund's average daily net assets equal to 0.40% on the assets under management of the Target Select Income Fund on the Closing Date of the Reorganization, 0.40% on the next $50 million thereafter, and 0.35% on assets thereafter.

The 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 Agreement will continue in effect for an initial period of two years with respect to the Fund 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.

Because the Fund had not commenced operations prior to the date of this SAI, no subadvisory fees have been paid to DoubleLine Capital.

**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., a wholly-owned subsidiary of Resolute Topco, Inc. ("Topco"). Topco is owned primarily by various institutional investment funds that are managed by financial institutions and other investment advisory firms. No owner of Topco owns 25% or more of the outstanding equity or voting interests of Topco. The address of Topco is 220 East Las Colinas Boulevard, Suite 1200, Irving, TX 75039.

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 Topco, Inc. | Ultimate Parent Company | Holding Company – Founded in 2015 |

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The Manager is paid a management fee as compensation for providing the Fund with management and administrative services. The expenses are allocated daily to each class of shares of the Fund based upon the relative proportion of net assets represented by such class. The Management Agreement provides for the Manager to receive an annualized management fee based on a percentage of the Fund's average daily net assets that is calculated and accrued daily according to the following schedule:

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

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The Management Agreement further provides that, for such time as DoubleLine Capital LP serves as the sub-advisor to the Acquiring Select Income Fund, with respect to the assets managed by DoubleLine Capital, the Fund shall pay the Manager an annualized management fee of 0.10% on the assets of the Target Fund on the Closing Date of the Reorganization, 0.10% on the first next $50 million in assets thereafter, and 0.15% on assets thereafter. If DoubleLine were to be terminated as the sub-advisor to the Fund, the first fee schedule above would be implemented.

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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;

• 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 Funds' interfund lending facility and lines of credit, if applicable.

In addition to its oversight of the sub-advisor, the Manager may invest the portion of the Fund's assets that the sub-advisor determines to be allocated to short-term investments.<br>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 prospectuses 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 the sub-advisor to the investment style of the Fund; fees paid for brokerage commission analysis for the purpose of monitoring best execution practices of the sub-advisor; 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 each applicable class of shares 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.

Because the Fund had not commenced operations prior to the date of this SAI, no fees have been paid to the Manager.

Certain sub-advisors of the Fund or other series of the American Beacon Funds contribute to the Manager to support the American Beacon Funds' distribution activities.

**Service Fees**<br>The Investor Class have adopted a Service Plan (the "Service Plan"). The Service Plan authorizes the payment to the Manager (or another entity approved by the Board) of up to 0.375% per annum of the average daily net assets of the Investor Class shares. In addition, the Fund may reimburse the Manager for certain non-distribution shareholder services provided by financial intermediaries attributable to Y Class shares. The Manager or other approved entities may spend such amounts on any activities or expenses primarily intended to result in or relate to the servicing of Y Class or Investor Class shares including, but not limited to, payment of shareholder service fees and transfer agency or sub-transfer agency expenses. The fees, which are included as part of the Fund's "Other Expenses" in the Table of Fees and Expenses in the Prospectus, will be payable monthly in arrears. The primary non-distribution shareholder fees paid to financial intermediaries such as plan sponsors and broker-dealers, generally include shareholder servicing, record keeping and servicing fees.

Because the Fund had not commenced operations prior to the date of this SAI, no service fees have been paid.

**Securities Lending Fees**<br>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 investment income (the income earned in the form of interest, dividends and realized capital gains from the investment of cash collateral, plus any negative rebate fees paid by borrowers, less the rebate amount paid to borrowers as well as related expenses) and, with respect to collateral other than cash, a fee up to 10% of loan fees and demand premiums paid by borrowers.

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

The 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 SAI, the Fund does not intend to engage in securities lending activities.

**The Distributor**

Resolute Investment Distributors, Inc. ("RID" or "Distributor") is the Fund's distributor and principal underwriter of the Fund's shares.

RID, located at 220 East Las Colinas Blvd., Suite 1200, Irving, Texas 75039, is a registered broker-dealer and is a member of FINRA. The Distributor is affiliated with the Manager through common ownership. Under a Distribution Agreement with the Trust, the Distributor acts as the distributor and principal underwriter of the Trust in connection with the continuous offering of shares of the Fund. The Distributor continually distributes shares of the Fund on a best efforts basis. The Distributor has no obligation to sell any specific quantity of the Fund's shares. The Distributor retains any portion of the commission fees that are not paid to the broker-dealers for use solely to pay distribution related expenses.

Since the Fund had not commenced operations prior to the date of this SAI, no underwriting discounts and commissions, compensation on redemptions and repurchases, brokerage commissions or other compensation have been paid to, or retained by, the Distributor.

**OTHER SERVICE PROVIDERS**

State Street, located at One Congress Street, Suite 1, Boston, Massachusetts 02114-2016, serves as custodian ("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 the sub-advisor and is set forth below. The number of accounts and assets is shown as of August 31, 2025.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Number of Other Accounts Managed** <br>**and Assets by Account Type** | **Number of Other Accounts Managed** <br>**and Assets by Account Type** | **Number of Other Accounts Managed** <br>**and Assets by Account Type** | **Number of Accounts and Assets for Which** <br>**Advisory Fee is Performance-Based** | **Number of Accounts and Assets for Which** <br>**Advisory Fee is Performance-Based** | **Number of Accounts and Assets for Which** <br>**Advisory Fee is Performance-Based** |
| **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** |
| DoubleLine Capital LP  | DoubleLine Capital LP  |  |  |  |  |  |
| Andrew Hsu | 7 ($33.14 bil) | 6 ($1.98 bil) | 26 ($9.93 bil) |  |  | 1 ($0.89 bil) |
| Damien Contes | 1 ($0.35 bil) |  |  |  |  |  |

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\* Includes the Target Fund.

**Conflicts of Interest**

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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 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 Sub-Advisor as of August 31, 2025.

From time to time, potential and actual conflicts of interest may arise between a portfolio manager's management of the Fund, on the one hand, and the management of other accounts, on the other. Potential and actual conflicts of interest also may result because of DoubleLine Capital's other business activities. Other accounts managed by a portfolio manager might have similar investment objectives or strategies as the Fund, be managed (benchmarked) against the same index the Fund tracks, or otherwise hold, purchase, or sell securities that are eligible to be held, purchased or sold by the Fund. The other accounts might also have different investment objectives or strategies than the Fund.

**Knowledge and Timing of Fund Trades.** A potential conflict of interest may arise as a result of the portfolio manager's management of the Fund. Because of their positions with the Fund, the portfolio managers know the size, timing and possible market impact of the Fund's trades. It is theoretically possible that a portfolio manager could use this information to the advantage of other accounts under management, and also theoretically possible that actions could be taken (or not taken) to the Fund.

**Investment Opportunities.** A potential conflict of interest may arise as a result of the portfolio manager's management of a number of accounts with varying investment guidelines. Often, an investment opportunity may be suitable for the Fund and other accounts managed by the portfolio manager, but securities may not be available in sufficient quantities for both the Fund and the other accounts to participate fully. Similarly, there may be limited opportunity to sell an investment held by the Fund and another account. DoubleLine Capital has adopted policies and procedures reasonably designed to allocate investment opportunities on a fair and equitable basis over time.

Under DoubleLine Capital's allocation procedures, investment opportunities are allocated among various investment strategies based on individual account investment guidelines, DoubleLine Capital's investment outlook, cash availability and a series of other factors. DoubleLine Capital has also adopted additional internal practices to complement the general trade allocation policy that are designed to address potential conflicts of interest due to the side-by-side management of the Fund and certain pooled investment vehicles, including investment opportunity allocation issues.

**Broad and Wide-Ranging Activities.** The Portfolio Managers, DoubleLine Capital and its affiliates engage in a broad spectrum of activities. In the ordinary course of their business activities, the Portfolio Managers, DoubleLine Capital and its affiliates may engage in activities where the interests of certain divisions of DoubleLine Capital and its affiliates or the interests of their clients may conflict with the interests of the shareholders of the Fund.

**Possible Future Activities.** DoubleLine Capital and its affiliates may expand the range of services that it provides over time. Except as provided herein, DoubleLine Capital and its affiliates will not be restricted in the scope of its business or in the performance of any such services (whether now offered or undertaken in the future) even if such activities could give rise to conflicts of interest, and whether or not such conflicts are described herein.

DoubleLine Capital and its affiliates have, and will continue to develop, relationships with a significant number of companies, financial sponsors and their senior managers, including relationships with clients who may hold or may have held investments similar to those intended to be made by the Fund. These clients may themselves represent appropriate investment opportunities for the Fund or may compete with the Fund for investment opportunities.

**Performance Fees and Personal Investments.** A Portfolio Manager may advise certain accounts with respect to which the advisory fee is based entirely or partially on performance or in respect of which the portfolio manager may have made a significant personal investment. Such circumstances may create a conflict of interest for the portfolio manager in that the Portfolio Manager may have an incentive to allocate the investment opportunities that he or she believes might be the most profitable to such other accounts instead of allocating them to the Fund. DoubleLine Capital has adopted policies and procedures reasonably designed to allocate investment opportunities between the Fund and performance fee based accounts on a fair and equitable basis over time.

**Compensation** 

The following is a description provided by the investment sub-advisor regarding the structure of and criteria for determining the compensation of the Portfolio Managers as of August 31, 2025.

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The overall objective of the compensation program for DoubleLine Capital is intended to attract competent and expert investment professionals and to retain them over the long-term. Compensation is comprised of several components which, in the aggregate, are designed to achieve these objectives and to reward each employee for his or her contributions to the success of DoubleLine Capital's clients and DoubleLine Capital. Employees are generally compensated through a combination of base salary, discretionary bonus and, in some cases, equity participation in DoubleLine Capital.

**Salary**. Salary is agreed to with employees at time of employment and is reviewed from time to time. It does not change significantly year over year and often does not constitute a significant part of an employee's compensation.

**Discretionary Bonus/Guaranteed Minimums**. Employees receive discretionary bonuses. However, in some cases, pursuant to contractual arrangements, some employees may be entitled to a mandatory minimum bonus if the sum of their salary and profit sharing does not reach certain levels.

**Equity** **Incentives**. Some employees participate in equity incentives based on overall firm performance of one or more of the DoubleLine group of companies, or through direct ownership interests in one or more of the DoubleLine group of companies or participation in stock option or stock appreciation plans of DoubleLine Capital. These ownership interests or participation interests provide eligible employees the opportunity to participate in the financial performance of DoubleLine Capital. Participation is generally determined in the discretion of management of DoubleLine Capital, taking into account factors relevant to the employee's contribution to the success of DoubleLine Capital.

**Other Plans and Compensation** **Vehicles**. Employees may elect to participate in the company's 401(k) plan, to which they may contribute a portion of their pre- and post-tax compensation to the plan for investment on a tax-deferred basis. DoubleLine Capital may also choose, from time to time, to offer certain other compensation plans and vehicles, such as a deferred compensation plan, to employees.

**Summary**. As described above, an employee's total compensation is determined through a subjective process that evaluates numerous quantitative and qualitative factors, including the contributions made to the overall investment process. Not all factors apply to each employee and there is no particular weighting or formula for considering certain factors. Among the factors considered are: relative investment performance of portfolios (although there are no specific benchmarks or periods of time used in measuring performance); complexity of investment strategies; participation in the investment team's dialogue; contribution to business results and overall business strategy; success of marketing/business development efforts and client servicing; seniority/length of service with the firm; management and supervisory responsibilities; and fulfillment of DoubleLine Capital's leadership criteria.

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

The Portfolio Managers' beneficial ownership of the Fund is defined as the Portfolio Managers 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 Managers' immediate family or by a trust of which the Portfolio Managers are a trustee could be considered ownership by the Portfolio Managers. The Fund has not commenced operations prior to the date of this SAI. Accordingly, the Portfolio Managers do not beneficially own any shares of the Fund as of the date of this SAI. The table below sets forth the Portfolio Managers' beneficial ownership of the Acquired DoubleLine Fund as of August 31, 2025 as provided by the sub-advisor:

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| | |
|:---|:---|
| **Name of Investment Advisor and Portfolio Managers** | **DoubleLine Select Income Fund**  |
| **DoubleLine Capital LP** | **DoubleLine Capital LP** |
| Andrew Hsu | $50001 -$100000  |
| Damien Contes | $50001 -$100000 |

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**PORTFOLIO SECURITIES TRANSACTIONS**

In selecting brokers or dealers to execute particular transactions, the Manager and the sub-advisor 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-advisor (or their affiliates), provided, however, that the Manager or the sub-advisor 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-advisor 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-advisor 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-advisor, as

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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-advisor exercises investment discretion. The fees of the sub-advisor 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-advisor (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-advisor, as applicable, to benefit their other accounts under management.

The Manager and the sub-advisor will place their own orders to execute securities transactions that are designed to implement the Fund's investment objective and policies. In placing such orders, the 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, the 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 Agreement provides, in substance, that in executing portfolio transactions and selecting brokers or dealers, the principal objective of the sub-advisor is to seek best execution. In assessing available execution venues, the 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 the 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 participation in the commission recapture program is directed exclusively to the Fund. Neither the Manager nor the sub-advisor receives any benefits from the commission recapture program. The sub-advisor's participation in the brokerage commission recapture program is optional. The 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.

The Fund had not commenced operations prior to the date of this SAI. Accordingly: no brokerage commissions were paid by the Fund during the previous three fiscal years; the Fund did not receive any compensation as a result of participation in the commission recapture program during the prior fiscal year; the Fund directed no transactions to brokers in part because of research services provided and paid no commissions on such transactions during the past fiscal year; and the Fund did not hold securities issued by a broker-dealer (or by its parent) that was one of the top ten brokers or dealers through which the Fund executed transactions or sold shares during the prior fiscal year.

**REDEMPTIONS IN KIND**

Although the Fund intends to redeem shares in cash, the Fund reserves the right to pay the redemption price in whole or in part by a distribution of securities or other assets. However, shareholders always will be entitled to redeem shares for cash up to the lesser of $250,000 or 1% of the Fund's net asset value during any 90-day period. 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.

**TAX INFORMATION**

The tax information in the Prospectus and in this section relates solely to the federal income tax law and assumes that the Fund will continue to qualify each taxable year as a "regulated investment company" ("RIC") under the Internal Revenue Code (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 provided in the Prospectus. No attempt has been made 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 Prospectus are not intended as substitutes for careful tax planning. The tax information is based on the Internal Revenue Code

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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</u>** **<u>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 (together with Qualifying Other
 Income (as defined below), "Qualifying Income"), 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 Other 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 these 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 to satisfy 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 Prospectus) ("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>**

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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.

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 do 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, the Fund 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 Other 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 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 Shareholders</u>**

General - For United States federal income tax purposes, distributions paid out of the Fund's current or accumulated earnings and profits will generally be taxable as ordinary dividend income. Distributions of net capital gain, if any, reported as capital gains dividends are taxable to a shareholder as long-term capital gains, regardless of how long the shareholder has held Fund shares. (Net capital gain is the excess (if any) of net long-term capital gain over net short-term capital loss, and investment company taxable income is all taxable income and capital gains, other than those gains and losses included in computing net capital gain, after reduction by deductible expenses.) The Fund may elect to retain its net capital gain or a portion thereof for investment and be taxed at corporate rates on the amount retained. In such case, it may designate the retained amount as undistributed capital gains in a notice to its shareholders who will be treated as if each received a distribution of its pro rata share of such gain, with the result that each shareholder will: (i) be required to report its pro rata share of such gain on its tax return as long-term capital gain; (ii) receive a refundable tax credit for his pro rata share of tax paid by the Fund on the gain; and (iii) increase the tax basis for its shares by an amount equal to the deemed distribution less the tax credit. Dividends and other distributions by the Fund are generally treated under the Internal Revenue Code as received by the shareholders at the time the dividend or distribution is made. 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 December 31 of that year if the Fund pays the distributions during the following January. Accordingly, those distributions will be reportable by, and taxed to, those shareholders for the taxable year in which that December 31 falls.

If the Fund makes a "return of capital" distribution to its shareholders – i.e., a distribution in excess of its current and accumulated earnings and profits the excess will (a) reduce each shareholder's tax basis in its shares (thus reducing any loss or increasing any gain on a shareholder's subsequent taxable disposition of the shares) and (b) if for any shareholder the excess is greater than that basis, be treated as realized capital gain.

Selling shareholders will generally recognize gain or loss in an amount equal to the difference between the shareholder's adjusted tax basis in the shares sold and the sale proceeds. If the shares are held as a capital asset, the gain or loss will be a capital gain or loss. The maximum tax rate applicable to net capital gains recognized by individuals and other non-corporate taxpayers is: (i) the same as the maximum ordinary income tax rate for gains recognized on the sale of capital assets held for one year or less; or (ii) 20% for gains recognized on the sale of capital assets held for more than one year (as well as certain capital gain distributions) (15% or 0% for individuals in certain tax brackets). If Fund shares are redeemed 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

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addition, any loss a 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 redemption; 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 may 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.

For U.S. individuals with income exceeding $200,000 ($250,000 if married and filing jointly), a 3.8% Medicare contribution tax will apply on all or a portion of their "net investment income," including interest, dividends, and capital gains, which generally includes taxable distributions received from the Fund and taxable gains on the disposition of shares of the Fund. This 3.8% tax also applies to all or a portion of the undistributed net investment income of certain shareholders that are estates and trusts. An investor also should be aware that the benefits of the reduced tax rate applicable to long-term capital gains may be impacted by the application of the alternative minimum tax to individual shareholders. Special tax rules apply to investments through defined contribution plans and other tax-qualified plans. Shareholders should consult their tax advisor to determine the suitability of shares of the Fund as an investment through such plans.

**Basis Election and Reporting** - A Fund shareholder who wants to use an acceptable method for basis determination 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 basis determination method a Fund shareholder elects may not be changed with respect to a redemption (including a redemption that is part of an exchange) of Fund 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 shareholders the basis information for Fund shares that are redeemed or exchanged and indicate whether they had a short-term (one year or less) or long-term (more than one year) holding period. Fund 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 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 non-resident 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 non-resident 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 pay, "short-term capital gain dividends" and "interest-related 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.

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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.

**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 "Massachusetts business trust." Under Massachusetts law, shareholders of such a trust may, under certain circumstances, be held personally liable for its obligations. 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 Investor Class was created to give individuals and other smaller investors an opportunity to invest in the American Beacon Funds. The Y Class was created to manage money for large institutional investors, including pension and 401(k) plans.

**FINANCIAL STATEMENTS**

Effective with the closing of the Reorganization expect to occur on February 6, 2026, the Fund will adopt the financial statements of the Target Select Income Fund. [The audited financial statements of the Target Select Income Fund are incorporated by reference to Item 7 of the Target Select Income Fund's Form N-CSR for the fiscal year ended March 31, 2025.](https://www.sec.gov/ix?doc=/Archives/edgar/data/1480207/000113322825006079/dft-efp15564_ncsr.htm) The information in those financial statements was audited by the Target Select Income Fund's independent registered public accounting firm for those periods. 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. PricewaterhouseCoopers LLP, an independent registered public accounting firm, has been appointed to serve as the independent registered public accounting firm for the Fund to audit and report on the Fund's annual financial statements.

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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 August 28, 2023** 

**<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.

**<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.

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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 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**

**DOUBLELINE CAPITAL LP** **PROXY VOTING POLICY**

The determination of how to vote proxies relating to the Fund's portfolio securities is made by DoubleLine Capital pursuant to its written proxy voting policies and procedures (the "Proxy Policy"), which have been adopted pursuant to Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). The Proxy Policy also applies to any voting rights and/or consent rights on behalf of the portfolio securities, with respect to debt securities, including but not limited to, plans of reorganization, and waivers and consents under applicable indentures.

The Proxy Policy is designed and implemented in a manner reasonably expected to ensure that voting and consent rights are exercised in the best interests of the Fund and their shareholders. To assist DoubleLine Capital in carrying out its proxy voting obligations, on behalf of DoubleLine Capital, DoubleLine Group has retained a third-party proxy voting service provider, currently Glass, Lewis & Co. ("Glass Lewis"), as their proxy voting agent. Pursuant to an agreement with DoubleLine Group, Glass Lewis obtains proxy ballots with respect to securities held by the Fund, evaluates the individual facts and circumstances relating to any proposal, and generally votes on any such proposal in accordance with the guidelines set forth in this Appendix B (the "Guidelines"). In the event that a proposal is not adequately addressed by the Guidelines, Glass Lewis will make a recommendation to DoubleLine Capital as to how to vote on such proposal, which DoubleLine Capital may accept or reject in accordance with the Proxy Policy. DoubleLine Capital's personnel are responsible for managing the relationship with Glass Lewis and/or any other third-party proxy voting service provider and for overseeing its compliance with the Proxy Policy. DoubleLine Capital, in its discretion, may retain another third-party proxy voting service provider in addition to or in lieu of Glass Lewis.

In connection with exercising a voting or consent right on behalf of the Fund, DoubleLine Capital will monitor for material conflicts of interest arising between DoubleLine Capital and the Fund in accordance with the Proxy Policy. If no conflict exists, DoubleLine Capital will vote the proxy on a case-by-case basis in the best interest of each client under the circumstances in accordance with the Proxy Policy, as discussed above.

If a material conflict does exist, DoubleLine Capital will seek to resolve any such conflict in accordance with the Proxy Policy, which seeks to resolve such conflict in the Fund's best interest by pursuing any one of the following courses of action: (i) voting (or not voting) in accordance with the guidelines included in the Proxy Policy; (ii) convening a Proxy Voting Committee meeting to assess available measures to address the conflict and implementing those measures; (iii) voting in accordance with the recommendation of an independent third-party service provider chosen by the Proxy Voting Committee; (iv) voting (or not voting) in accordance with the instructions of the Fund's Board of Trustees, or any committee thereof; or (v) not voting with respect to the proposal if consistent with DoubleLine Capital's fiduciary obligations. In voting proxies, including those in which a material conflict may be determined to exist, DoubleLine Capital may also consider the factors and guidelines included in its Proxy Policy.

In certain limited circumstances, particularly in the area of structured finance, DoubleLine Capital may enter into voting agreements or other contractual obligations that govern the voting of shares and, in such cases, will vote any proxy in accordance with such agreement or obligation.

In addition, where DoubleLine Capital determines that there are unusual costs and/or difficulties associated with voting a proxy, which more typically might be the case with respect to proposals relating to non-U.S. issuers, DoubleLine Capital reserves the right to not vote on such a proposal unless it determines that the potential benefits of voting on such proposal exceed the expected cost to the Fund.

**Proxy Voting Guidelines**<br>**Effective July 1, 2023**

The Advisers have a fiduciary duty to clients, and shall exercise diligence and care, with respect to its proxy voting authority. Accordingly, the Advisers will review each proposal to determine the relevant facts and circumstances and adopt the following guidelines as a framework for analysis in seeking to maximize the value of client investments. The guidelines do not address all potential voting matters and actual votes by the Advisers may vary based on specific facts and circumstances.

A. Director Elections

Directors play a critical role in ensuring that the company and its management serve the interests of its shareholders by providing leadership and appropriate oversight. We believe that the board of directors should have the requisite industry knowledge, business acumen and understanding of company stakeholders in order to discharge its duties effectively.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Frequency of Elections**<br>Electing all directors annually. |  | **For** |
| **Uncontested Elections**<br>Voting management nominees, unless the nominee lacks independence or focus, has had chronic absences or presents other material concerns to the detriment of the effectiveness of the board. |  | **For** |
| **Majority Voting**<br>Allowing majority voting unless incumbent directors must resign if they do not receive a majority vote in an uncontested election |  | **For** |
| **Cumulative Voting**<br>Allowing cumulative voting unless the company previously adopted a majority voting policy |  | **For** |
| **Changes in Board Structure**<br>Changing the board structure, such as the process for vacancies or director nominations, or the board size, unless there is an indication that the change is an anti-takeover device, or it diminishes shareholder rights |  | **For** |
| **Stock Ownership**<br>Requiring directors to own company shares. | X | **Against** |
| **Contested Elections**<br>The qualifications of nominees on both slates, management track record and strategic plan for enhancing shareholder value, and company financial performance generally will be considered when voting nominees in a contested election | X | **Case-by-Case** |

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B. Section 14A Say-On-Pay Votes

Current law requires companies to allow shareholders to cast non-binding advisory votes on the compensation for named executive officers, including the frequency of such votes. The Advisers generally support proposals for annual votes, as well as the ratification of executive compensation unless the compensation structure or any prior actions taken by the board or compensation committee warrant a case-by-case analysis.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Frequency of Say-On-Pay Votes**<br>Annual shareholder advisory votes regarding executive compensation | X | **For** |
| **Compensation Disclosures**<br>Seeking additional disclosures related to executive and director pay unless similar information is already provided in existing disclosures or reporting. | X | **For** |
| **Executive Compensation Advisory**<br>Executive compensation proposals generally will be assessed based on its structure, prevailing industry practice and benchmarks, and any problematic prior pay practices or related issues involving the board/compensation committee. | X | **Case-by-Case** |
| **Golden Parachute Advisory**<br>Golden parachute proposals, in general, will be assessed based on the existing change-in-control arrangements, the nature and terms of the triggering event(s) and the amount to be paid. | X | **Case-by-Case** |

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C. Audit-Related

The Advisers generally support proposals for the selection or ratification of independent auditors, subject to a consideration of any conflicts of interest, poor accounting practices or inaccurate prior opinions and related fees.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Appointment of Auditors**<br>Selecting or ratifying independent auditors, unless there is a material conflict of interest, a history of poor accounting practice or inaccurate opinions, or excessive fees. |  | **For** |
| **Non-Audit/Consulting Services**<br>Other alternative service providers, conflicts of interest, and company disclosures are areas of consideration when voting proposals to limit other engagements with auditors. | X | **Case-by-Case** |
| **Indemnification of Auditors**<br>Indemnification of auditors generally will be assessed based on the nature of the engagement, the auditor's work history and field of expertise, and the terms of the agreement such as its impact on the ability of shareholders to pursue legal recourse against the auditor for certain acts or omissions. | X | **Case-by-Case** |
| **Rotation of Auditors**<br>Shareholder proposals requiring auditor rotation generally will be assessed based on any audit issues involving the company, the auditor's tenure with the company, and policies and practices surrounding auditor evaluations. | X | **Case-by-Case** |

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D. Investment Company Matters

When the Advisers invest in a DoubleLine Fund with other public shareholders, the Advisers will vote the shares of such fund in the same proportion as the votes of the other shareholders. Under this "echo voting" approach, the Advisers' potential conflict is mitigated by replicating the voting preferences expressed by the other shareholders. With respect to specific proposals involving the DoubleLine Funds, the Advisers generally support recommendations by the fund's board unless applicable laws and regulations prohibit the Advisers from doing so.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Share Classes**<br>Issuance of new classes or series of shares |  | **For** |
| **Investment Objectives**<br>Changing a fundamental investment objective to nonfundamental. |  | **Against** |
| **Investment Restrictions**<br>Changing fundamental restrictions to nonfundamental generally will be assessed in consideration of the target investments, reason(s) for the change and its impact on the portfolio. |  | **Case-by-Case** |
| **Distribution Agreements**<br>Distribution agreements generally will be assessed based on the distributor's services and reputation, applicable fees, and other terms of the agreement |  | **Case-by-Case** |
| **Investment Advisory Agreements**<br>Investment advisory agreements generally will be assessed based on the applicable fees, fund category and investment objective, and performance. |  | **Case-by-Case** |

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E. Shareholder Rights and Defenses

The Advisers believe that companies have a fundamental obligation to protect the rights of shareholders. Therefore, the Advisers generally support proposals that hold the board and management accountable in serving the best interest of shareholders and that uphold their rights. However, the Advisers generally will not support proposals from certain shareholders that are hostile, disruptive, or are otherwise counter to the best interest of the Advisers' clients.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Appraisal Rights**<br>Providing shareholders with rights of appraisal | X | **For** |
| **Fair Price Provision**<br>Fair price provisions that ensures each shareholder's securities will be purchased at the same price if the company is acquired in disagreement with the board. However, fair price provisions may not be supported if it is used as an anti-takeover device by the board. | X | **For** |
| **Special Meetings**<br>Providing or restoring rights to call a special meeting so long as the threshold to call a meeting is no less than 10 percent of outstanding shares | X | **For** |
| **Confidential Voting**<br>Allowing shareholders to vote confidentially | X | **For** |
| **Written Consents**<br>Allowing shareholders to act by written consent | X | **For** |
| **Greenmail**<br>Adopting anti-greenmail charter or bylaw amendments or otherwise restricting the company's ability to make greenmail payments for repurchasing shares at a premium to prevent a hostile takeover | X | **For** |
| **Supermajority Vote**<br>Requiring a supermajority vote, unless there are disproportionate substantial shareholders that weaken minority votes |  | **Against** |
| **Bundled Proposals**<br>Bundled or conditional proposals generally will be reviewed to determine the benefit or cost of the matters included or if there is a controversy or any matter that is adverse to shareholder interests |  | **Case-by-Case** |
| **Preemptive Rights**<br>Preemptive rights, in general, will be assessed based on the size of the company and its shareholder base, for which larger publicly held companies with a broad shareholder base may be less ideal. |  | **Case-by-Case** |
| **Shareholder Rights Plans (Poison Pills)**<br>Poison pills generally will be assessed based on the company's governance practices, existing takeover defenses, and the terms of the plan, including the triggering mechanism, duration, and redemption/rescission features. Requests to have shareholders ratify plans generally will be supported. | X | **Case-by-Case** |

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F. Extraordinary Transactions

Proposals for transactions that may affect the ownership interests or voting rights of shareholders, such as mergers, asset sales and corporate or debt restructuring, will be assessed on a case-by-case basis generally in consideration of the economic outcome for shareholders, the potential dilution of shareholder rights and its impact on corporate governance, among other relevant factors.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Reincorporation**<br>Reincorporating in another state or country in support of the rights and economic interests of shareholders. |  | **For** |
| **Merger, Corporate Restructuring and Spin** **Offs**<br>Merger, corporate restructuring and spin off proposals generally will be assessed with the view of maximizing the economic value of shareholder interests. The purchase or sale price and other deal terms will be reviewed, among other factors, to ensure that that the transaction is aligned with the long-term interests of shareholders. |  | **Case-by-Case** |
| **Debt Restructuring**<br>The terms of the transaction, current capital markets environment, and conflicts of interest are factors that generally will be considered for ensuring that the proposal enhances the economic value of shareholder interests. |  | **Case-by-Case** |
| **Liquidations and Asset Sales**<br>As with other transaction proposals, the long-term economic impact of the transaction will be the focus of review of such proposals and, in general, factors such as the sale price, costs and conflicts of interest will be considered. |  | **Case-by-Case** |

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G. Capital Structure

The Advisers believe that the prudent management of debt and equity to finance company operations and growth, and which is supportive of shareholders' rights and economic interests, is critical to financial viability.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Common Stock**<br>Issuing common stock for recapitalizations, stock splits, dividends or otherwise reasonably amending outstanding shares for a specific purpose |  | **For** |
| **Multi-Class Shares**<br>Adopting multi-class share structures so long as they have equal voting rights. |  | **For** |
| **Repurchase Programs**<br>Adopting plans to repurchase shares in the open market unless shareholders cannot participate on equal terms. |  | **For** |
| **Blank Check Preferred Stock**<br>Allowing the board to issue preferred shares without prior shareholder approval and setting the terms and voting rights of preferred shares at the board's discretion. |  | **Against** |
| **Recapitalization Plans**<br>The rationale and objectives; current capital markets environment; impact on shareholder interests including conversion terms, dividends and voting rights; and any material conflicts of interest are factors that generally will be considered when reviewing proposals to reclassify debt or equity capital |  | **Case-by-Case** |

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H. Compensation

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The Advisers believe that compensation arrangements should align the economic interests of directors, management, and employees with those of shareholders and consider factors such as (1) local norms, (2) industry-specific practices and performance benchmarks, and (3) the structure of base and incentive compensation. The Advisers generally support transparency (e.g., disclosures related to the performance metrics and how they promote better corporate performance, etc.) and periodic reporting with respect to compensation.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Employee 401 (k) Plan**<br>Adopting a 401 (k) plan for employees. |  | **For** |
| **Employee Stock Option Plan (ESOP)**<br>Requiring shareholder approval to adopt a broad-based ESOP or to increase outstanding shares for an existing plan unless the allocation of outstanding shares to the ESOP exceeds five percent or 10 percent among all stock-based plans |  | **For** |
| **Recoupment Provisions (Clawbacks)**<br>Adopting clawback provisions in cases of revised financial results or performance indicators on which prior compensation payments were based, as well as for willful misconduct or violations of law or regulation that result in financial or reputational harm to the company. | X | **For** |
| **Limits on Executive or Director Compensation**<br>Setting limits on executive or director compensation unless there is a substantial deviation from industry practice or any problematic issue involving the board/compensation committee or prior pay practices. | X | **Against** |
| **Equity-Based and Other Incentive Plans**<br>Incentive plans, in general, will be assessed based on the prevailing local and industry-specific practices and performance benchmarks, the terms of the plan and whether they are aligned with company goals and shareholder interests, the cost of the plan, and the overall compensation structure |  | **Case-by-Case** |
| **Severance Agreements for Executives** **(Golden Parachutes)**<br>Golden parachutes generally will be assessed based on the existing change-in-control arrangements, the nature and terms of the triggering event(s) and the amount to be paid. |  | **Case-by-Case** |

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I. Corporate Governance

The Advisers believe that authority and accountability for establishing business strategies, corporate policies and compensation generally should rest with the board and management. The independence, qualifications, and integrity of the board as well as the effectiveness of management and their oversight, which must be aligned with shareholder interests, are essential to good governance. The following general guidelines reflect these principles although material environmental, social and governance (ESG) factors, which have a potential financial impact on the company and the valuation of client investments, if any, are also considered.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Quorum Requirements**<br>Establishing a majority requirement, unless shareholder turnout has been an issue, or a reduced quorum is reasonable based on applicable laws or regulations and the market capitalization or ownership structure of the company. |  | **For** |
| **Annual Meetings**<br>Changing the date, time, or location of annual meetings, unless the proposed schedule or location is unreasonable |  | **For** |
| **Board Size**<br>Setting the board size, so long as the proposal is consistent with the prevailing industry practice and applicable laws or regulations. |  | **For** |
| **Proxy Access**<br>Allowing shareholders to nominate director candidates in proxy ballots with reasonable limitations (e.g., minimum percentage and duration of ownership and a cap on board representation) for preventing potential abuse by certain shareholders | X | **For** |
| **Independent Directors**<br>Requiring the board chair and a majority of directors to be independent directors. Proposals for a lead independent director may be supported in cases where the board chair is not independent | X | **For** |
| **Independent Committees**<br>Requiring independent directors exclusively for the audit, compensation, nominating and governance committees. | X | **For** |
| **Removal of Directors**<br>Removing a director without cause. | X | **For** |
| **Indemnification of Directors and Officers**<br>Indemnifying directors and officers for acts and omissions made in good faith and were believed to be in the best interest of the company. Limitations on liability involving willful misconduct or violations of law or regulation, or a breach of fiduciary duty, generally will be voted against |  | **For** |
| **Term Limits for Directors**<br>Imposing term limits on directors unless the director evaluation process is ineffective and related issues persist | X | **Against** |
| **Classified Boards**<br>Establishing a classified board. |  | **Against** |
| **Adjournment of Meetings**<br>Providing management the authority to adjourn annual or special meetings without reasonable grounds |  | **Against** |
| **Amendments to Bylaws**<br>Giving the board the authority to amend bylaws without shareholder approval. |  | **Against** |

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J. Environment or Climate

The Advisers would generally consider the recommendations of management for shareholder proposals involving environmental issues as it believes that, in most cases, elected directors and management are in the best position to address such matters. In addition, reporting that provides meaningful information for evaluating the financial impact of environmental policies and practices is generally supported unless it is unduly costly or burdensome or it places the company at a competitive disadvantage. Material ESG factors, which have a potential financial impact on the company and the valuation of client investments, if any, are also considered.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Environmental and Climate Disclosures**<br>Providing environmental/climate-related disclosures and reporting unless it is duplicative or unsuitable. |  | **For** |
| **Environmental and Climate Policies**<br>Environmental and climate policies generally will be assessed based on the company's related governance practices, local and industry-specific practices, the nature and extent of environmental and climate risks applicable to the company, and the economic benefit to shareholders |  | **Case-by-Case** |

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K. Human Rights or Human Capital/Workforce

The Advisers would generally consider the recommendations of management for shareholder proposals involving social issues as it believes that, in most cases, elected directors and management are in the best position to address such matters. In addition, reporting that provides meaningful information for evaluating the financial impact of social policies and practices is generally supported unless it is unduly costly or burdensome or it places the company at a competitive disadvantage. Material ESG factors, which have a potential financial impact on the company and the valuation of client investments, if any, are also considered.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Human Rights and Labor Disclosures**<br>Providing human rights and labor-related disclosures and reporting unless it is duplicative or unsuitable. |  | **For** |
| **Human Rights and Labor Policies**<br>Human rights and labor policies generally will be assessed based on the company's related governance practices, applicable law or regulations, local and industry-specific practices, the nature and extent of supply chain or reputational risks applicable to the company, and their economic benefit to shareholders |  | **Case-by-Case** |

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L. Diversity, Equity, and Inclusion

The Advisers generally support reporting that provides meaningful information for evaluating the financial impact of diversity, equity, and inclusion (DEI) policies and practices unless it is unduly costly or burdensome. For policy proposals, the Advisers will consider existing policies, regulations and applicable local standards and best practices, to determine if they provide an added benefit to shareholders. Material ESG factors, which have a potential financial impact on the company and the valuation of client investments, if any, are also considered.

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **DEI Disclosures**<br>Providing Equal Employment Opportunity (EEO-1) Reports, and other additional disclosures or reporting unless it is duplicative or unsuitable. |  | **For** |
| **Anti-Discrimination Policy**<br>Adopting an anti-discrimination and harassment policy |  | **For** |
| **Other DEI Policies**<br>Other DEI policies generally will be assessed based on the company's related governance practices, applicable law or regulations, and local and industry-specific practices |  | **Case-by-Case** |

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M. Other Social Issues

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| | | |
|:---|:---|:---|
| **Proposal** | **Shareholder Proposal** | **Anticipated Vote** |
| **Political Contribution and Activities**<br>Political contributions and lobbying activities generally will be reviewed in consideration of legal restrictions and requirements, applicable policies and historical practice, and its cost-benefit to the company. Related disclosures to shareholders generally are supported. |  | **Case-by-Case** |
| **Charitable Contributions**<br>Charitable contributions, in general, will be reviewed in consideration of applicable policies and historical practice, conflicts of interests, as well as the cost-benefit of charitable spending. Related disclosures to shareholders generally are supported |  | **Case-by-Case** |

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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, subject to the lowest level of credit risk. Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. Obligations rated A are judged to be upper-medium grade and are 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 be speculative and are subject to substantial credit risk. Obligations rated B are considered speculative and are subject to high credit risk. Obligations rated Caa are judged to be speculative, 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 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, and C 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 that 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

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obligation are not made on the date due, unless S&P Global believes that such payments will be made within the next 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. A rating on an obligation 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 adverse business or economic conditions than is the case for higher ratings. Obligations rated BBB are deemed to be of good credit quality. BBB ratings indicate that expectations of credit 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, and MIG/VMIG 3. The MIG/VMIG 1 designation denotes superior credit quality. Excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing. The MIG/VMIG 2 designation denotes strong credit quality. Margins of protection are ample, although not as large as in the preceding group.

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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 to repay short-term 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 typically means obligations with an original maturity of no more than 365 days. 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 higher rating categories. 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 that could lead to the obligor's inadequate capacity to meet its financial commitments. 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, 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.

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 a timeframe of up to 13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public finance markets. 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. 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. It indicates that 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, and indicates that 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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|:---|:---|
| **American Beacon or the Manager** | American Beacon Advisors, Inc. |
| **Beacon Funds or the Trust** | 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 |
| **CDSC** | Contingent Deferred Sales Charge |
| **CFTC** | Commodity Futures Trading Commission |
| **CLO** | Collateralized Loan 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 |
| **Dodd-Frank Act** | Dodd-Frank Wall Street Reform and Consumer Protection Act |
| **DRD** | Dividends-received deduction |
| **ESG** | Environmental, Social, and/or Governance |
| **ETF** | Exchange-Traded Fund |
| **EU** | European Union |
| **FINRA** | Financial Industry Regulatory Authority, Inc. |
| **Floaters** | Floating rate debt instruments |
| **Forwards** | Forward Currency Contracts |
| **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 |
| **IRA** | Individual Retirement Account |
| **IRS** | Internal Revenue Service |
| **Junk Bonds** | High yield, non-investment grade bonds |
| **LIBOR** | ICE LIBOR |
| **LOI** | Letter of Intent |
| **Management Agreement** | The Fund's Management Agreement with the Manager |
| **Moody's** | Moody's Investors Service, Inc. |
| **NAV** | Net asset value |
| **NYSE** | New York Stock Exchange |
| **OTC** | Over-the-Counter |
| **Proxy Policy** | Proxy Voting Policy and Procedures |
| **QDI** | Qualified Dividend Income |
| **RIC** | Regulated Investment Company |
| **RIH** | Resolute Investment Holdings, LLC |
| **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 |
| **State Street** | State Street Bank and Trust Co. |
| **Trustee Retirement Plan** | Trustee Retirement and Trustee Emeritus and Retirement Plan |
| **UK** | United Kingdom |

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**PART C**<br>OTHER INFORMATION

**Item 15. Indemnification**

*See (i) the Amended and Restated Declaration of Trust (the "Declaration of Trust") of American Beacon Funds (the "Trust" or the "Registrant"), dated August 27, 2024, attached as Exhibit (a)(1) to Post-Effective Amendment No. 418 to Registrant's Registration Statement on Form N-1A (File Nos. 033-11387 and 811-04984) (the "Registration Statement") filed with the Securities and Exchange Commission (the "SEC") on October 28, 2024 ("PEA No. 418"), and (ii) the Amended and Restated By-Laws, effective as of August 27, 2024, (the "By-Laws"), attached as Exhibit (b) to PEA No. 418.*

*Article XI of the Declaration of Trust of the Trust provides that:*

**Limitation of Liability**

<u><u>Section 1.</u></u> Provided they have exercised reasonable care and have acted under the reasonable belief that their actions are in the best interest of the Trust, the Trustees and officers of the Trust shall not be responsible for or liable in any event for neglect or wrongdoing of them or any officer, agent, employee or investment advisor of the Trust, and shall not be liable for errors of judgment or mistakes of fact or law, but nothing contained herein shall protect any Trustee or officer against any liability to which he or she would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office.

**Indemnification**

*Section 2.*

(a) Subject to the exceptions and limitations contained in paragraph (b) below:

(i) every person who is, or has been, a Trustee or 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 an 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 2, 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, attorneys' 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 such Covered Person. 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.

(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 paragraph (a) of this Section 2 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 2; provided, however, that any such advancement will be made in accordance with any conditions required by the Commission.

**3** 

------

The advancement of any expenses pursuant to this Section 2(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.

(f) Any repeal or modification of this Article XI or adoption or modification of any other provision of this Declaration of Trust inconsistent with this Article XI 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 2 and any advancement of expenses that any Covered Person is entitled to be paid under Section 2(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 XI; 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 Article III, Section 4.

(h) 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 Article XII, Section 2, 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 XI, Section 2 unless otherwise required under applicable law.

According to Article XII, Section 1 of the Amended and Restated Declaration of Trust, nothing in the Amended and Restated Declaration of Trust shall be construed to make the Shareholders, either by themselves or with the Trustees, partners or members of a joint stock association. Trustees are not liable personally to any person extending credit to, contracting with or having any claim against the Trust, a particular Series or the Trustees. A Trustee, however, is not protected from liability due to willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office.

Article V, Section 5 provides that, subject to the provisions of Article XI, the Trustees shall not be liable for any act or omission in accordance with certain advice of counsel or other experts or for failing to follow such advice.

*Numbered Paragraph 10 of the Management Agreement provides that:*

<u><u>10.</u></u> *<u>Limitation of Liability of the Manager.</u>* The Manager shall not be liable for any error of judgment or mistake of law or for any loss suffered by a 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 a Trust shall be deemed, when rendering services to a Trust or acting in any business of a Trust, to be rendering such services to or acting solely for a 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 DoubleLine Capital LP provides that:*

<u><u>9. Liability of Adviser; Indemnification.</u></u> The Adviser shall have no liability to the Manager, the Trust, its shareholders or any third party arising out of or related to this Agreement, provided however, the Adviser shall not be protected against any liability to, and shall indemnify and hold harmless, the Trust and its shareholders, the Manager, any affiliated person thereof within the meaning of Section 2(a)(3) of the Investment Company Act, and any controlling person thereof as described in Section 15 of the Securities Act, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Trust and its shareholders, 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, caused by : (i) any willful misfeasance, bad faith, gross negligence of the Adviser, 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 (such conduct "Adviser's Disabling Conduct"); or (ii) any untrue statement of a material fact contained in the Trust's prospectus and statement of additional information applicable to a Fund, or any other Trust filings, proxy materials, reports, advertisements, sales literature or other materials pertaining to a Fund or the Trust, or the omission to state therein a material fact known to the Adviser which was required to be stated therein or necessary to make the statements therein not misleading, if such statement or omission was made in reliance upon information furnished to the Manager or the Trust by the Adviser expressly for use therein.

The Manager agrees to indemnify and hold harmless the Adviser, any affiliated persons thereof within the meaning of Section 2(a)(3) of the Investment Company Act, and any controlling person thereof as described in Section 15 of the Securities Act, against any and all losses, claims, damages, liabilities or litigation (including reasonable legal and other expenses), to which the Adviser 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, including as result of any action or omission to act based on any instruction or direction from the Trust, the Manager or the Trustees, however arising except liabilities arising out of "Adviser's Disqualifying Conduct."

The indemnifications in this Section shall survive the termination of this Agreement.

*Section 4.2 of the Distribution Agreement provides that:*

(a) Notwithstanding anything in this Agreement to the contrary, Resolute shall not be responsible for, and the Client shall on behalf of each applicable Fund or Class thereof, indemnify and hold harmless Resolute, its employees, directors, officers and managers and any person who controls Resolute within the meaning of section 15 of the Securities Act or section 20 of the Securities Exchange Act of 1934, as amended, (for purposes of this Section 4.2(a), "Resolute Indemnitees") from and against, any and all losses, damages, costs, charges, reasonable counsel fees, payments,

**4**

------

liabilities and other expenses of every nature and character (including, but not limited to, direct and indirect reasonable reprocessing costs) arising out of or attributable to all and any of the following (for purposes of this Section 4.2(a), a "Resolute Claim")

(i) any material action (or omission to act) of Resolute or its agents taken in connection with this Agreement; provided, that such action (or omission to act) is taken in good faith and without willful misfeasance, negligence or reckless disregard by Resolute, or its affiliates, of its duties and obligations under this Agreement;

(ii) any untrue statement of a material fact contained in the Registration Statement or arising out of or based upon any alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, unless such statement or omission was made in reliance upon, and in conformity with, information furnished to the Client in connection with the preparation of the Registration Statement or exhibits to the Registration Statement by or on behalf of Resolute;

(iii) any material breach of the Clients' agreements, representations, warranties, and covenants in Sections 2.9 and 5.2 of this Agreement; or

(iv) the reliance on or use by Resolute or its agents or subcontractors of information, records, documents or services which have been prepared, maintained or performed by the Client or any agent of the Client, including but not limited to any Predecessor Records provided pursuant to Section 2.9(b).

(b) Resolute will indemnify, defend and hold the Client and their several officers and members of their Governing Bodies and any person who controls the Client within the meaning of section 15 of the Securities Act or section 20 of the Securities Exchange Act of 1934, as amended, (collectively, the "Client Indemnitees" and, with the Resolute Indemnitees, an "Indemnitee"), free and harmless from and against any and all claims, demands, actions, suits, judgments, liabilities, losses, damages, costs, charges, reasonable counsel fees and other expenses of every nature and character (including the cost of investigating or defending such claims, demands, actions, suits or liabilities and any reasonable counsel fees incurred in connection therewith), but only to the extent that such claims, demands, actions, suits, judgments, liabilities, losses, damages, costs, charges, reasonable counsel fees and other expenses result from, arise out of or are based upon all and any of the following (for purposes of this Section 4.2(c), a "Client Claim" and, with a Resolute Claim, a "Claim"):

(i) any material action (or omission to act) of Resolute or its agents taken in connection with this Agreement, provided that such action (or omission to act) is taken in good faith and without willful misfeasance, negligence or reckless disregard by Resolute, or its affiliates, of its duties and obligations under this Agreement.

(ii) any untrue statement of a material fact contained in the Registration Statement or any alleged omission of a material fact required to be stated or necessary to make the statements therein not misleading, if such statement or omission was made in reliance upon, and in conformity with, information furnished to the Client in writing in connection with the preparation of the Registration Statement by or on behalf of Resolute; or

(iii) any material breach of Resolute's agreements, representations, warranties and covenants set forth in Section 2.4 and 5.1 hereof.

(c) The Client or Resolute (for purpose of this Section 4.2(d), an "Indemnifying Party") may assume the defense of any suit brought to enforce any Resolute Claim or Client Claim, respectively, and may retain counsel chosen by the Indemnifying Party and approved by the other Party, which approval shall not be unreasonably withheld or delayed. The Indemnifying Party shall advise the other Party that it will assume the defense of the suit and retain counsel within ten (10) days of receipt of the notice of the claim. If the Indemnifying Party assumes the defense of any such suit and retains counsel, the other Party shall bear the fees and expenses of any additional counsel that they retain. If the Indemnifying Party does not assume the defense of any such suit, or if other Party does not approve of counsel chosen by the Indemnifying Party, or if the other Party has been advised that it may have available defenses or claims that are not available to or conflict with those available to the Indemnifying Party, the Indemnifying Party will reimburse any Indemnitee named as defendant in such suit for the reasonable fees and expenses of any counsel that the Indemnitee retains. An Indemnitee shall not settle or confess any claim without the prior written consent of the applicable Client, which consent shall not be unreasonably withheld or delayed.

(d) An Indemnifying Party's obligation to provide indemnification under this section is conditioned upon the Indemnifying Party receiving notice of any action brought against an Indemnitee within twenty (20) days after the summons or other first legal process is served. Such notice shall refer to the Person or Persons against whom the action is brought. The failure to provide such notice shall not relieve the Indemnifying Party of any liability that it may have to any Indemnitee except to the extent that the ability of the party entitled to such notice to defend such action has been materially adversely affected by the failure to provide notice.

(e) The provisions of this section and the parties' representations and warranties in this Agreement shall remain operative and in full force and effect regardless of any investigation made by or on behalf of any Indemnitee and shall survive the sale and redemption of any Shares made pursuant to subscriptions obtained by Resolute. The indemnification provisions of this section will inure exclusively to the benefit of each person that may be an Indemnitee at any time and their respective successors and assigns (it being intended that such persons be deemed to be third party beneficiaries under this Agreement).

*Section 4.3 of the Distribution Agreement provides that:*

Notwithstanding anything in this Agreement to the contrary, except as specifically set forth below:

(a) Neither Party shall be liable for losses, delays, failure, errors, interruption or loss of data occurring directly or indirectly by reason of circumstances beyond its reasonable control, including, without limitation, acts of God; action or inaction of civil or military authority; public enemy; war; terrorism; riot; fire; flood; sabotage; epidemics; labor disputes; civil commotion; interruption, loss or malfunction of utilities, transportation, computer or communications capabilities; insurrection; or elements of nature;

(b) Neither Party shall be liable for any consequential, special or indirect losses or damages suffered by the other Party, whether or not the likelihood of such losses or damages was known by the Party;

**5** 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(c) No affiliate, director, officer, employee, manager, shareholder, partner, agent, counsel or consultant of either Party shall be liable at law or in equity for the obligations of such Party under this Agreement or for any damages suffered by the other Party related to this Agreement;

(d) There are no third party beneficiaries of this Agreement;

(e) Each Party shall have a duty to mitigate damages for which the other Party may become responsible;

(f) The assets and liabilities of each Fund are separate and distinct from the assets and liabilities of each other Fund, and no Fund shall be liable or shall be charged for any debt, obligation or liability of any other Fund, whether arising under this Agreement or otherwise; and in asserting any rights or claims under this Agreement, Resolute shall look only to the assets and property of the Fund to which Resolute's rights or claims relate in settlement of such rights or claims; and

(g) Each Party agrees promptly to notify the other party of the commencement of any litigation or proceeding of which it becomes aware arising out of or in any way connected with the issuance or sale of Shares.

Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to trustees, officers and controlling persons of the Registrant pursuant to the foregoing or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a trustee, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such trustee, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

*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 16. Exhibits**

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| | |
|:---|:---|
| **Number** | **Exhibit Description** |
| (1)<br> (a) | [Amended and Restated Declaration of Trust](https://www.sec.gov/Archives/edgar/data/809593/000113322824009731/abf-efp10878_ex99a1.htm), dated August 27, 2024, is incorporated by reference to Post-Effective Amendment No. 418 |
| <br> (b)(i) | [Certificate of Designation](https://www.sec.gov/Archives/edgar/data/809593/000113322815006547/e427440_ex99-a4.htm) for American Beacon Sound Point Floating Rate Income Fund, is incorporated by reference to Post-Effective Amendment No. 239 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed December 23, 2015  |
| <br> (b)(ii) | [Amendment to Designation of Series](https://www.sec.gov/Archives/edgar/data/809593/000113322823000743/abf-html5991_ex99a3ii.htm) for American Beacon FEAC Floating Rate Income Fund, dated January 3, 2023, is incorporated by reference to Post-Effective Amendment No. 401 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed February 27, 2023 ("PEA No. 401") |
| <br> (b)(iii) | [Amendment to Designation of Series](https://www.sec.gov/Archives/edgar/data/809593/000113322825010284/abdsif-efp17884_ex99a3iv.htm) for American Beacon DoubleLine Floating Rate Income Fund, dated June 30, 2025, is incorporated by reference to Post-Effective Amendment No. 430 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed September 26, 2025 ("PEA No. 430")  |
| <br> (b)(iv) | [Certificate of Designation](https://www.sec.gov/Archives/edgar/data/809593/000113322825010284/abdsif-efp17884_ex99a15.htm) for American Beacon DoubleLine Select Income Fund, dated September 24, 2025, is incorporated by reference to PEA No. 430 |
| (2) | [Amended and Restated By-Laws](https://www.sec.gov/Archives/edgar/data/809593/000113322824009731/abf-efp10878_ex99b.htm), effective as of August 27, 2024, is incorporated by reference to PEA No. 418  |
| (3) | Voting Trust Agreements – (not applicable) |
| (4) | Form of Agreement and Plan of Reorganization and Termination – (filed herewith as Appendix A to the Combined Proxy Statement and Prospectus) |
| (5) | Rights of holders of the securities being registered are contained in Articles III, VIII, X, XI and XII of the Registrant's Amended and Restated Declaration of Trust and Articles II, III, VI, VII and VIII of the Registrant's [Amended and Restated By-Laws](https://www.sec.gov/Archives/edgar/data/809593/000113322824009731/abf-efp10878_ex99b.htm) |
| (6)<br> (a)(i) | [Management Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824000854/abf-html7215_ex99d1ai.htm) by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated December 29, 2023, is incorporated by reference to Post-Effective Amendment No. 411 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed February 9, 2024 ("PEA No. 411") |
| (a)(ii) | [First Amendment to Management Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824000854/abf-html7215_ex99d1aii.htm) Schedule B by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated January 9, 2024, is incorporated by reference to PEA No. 411 |

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**6**

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| | |
|:---|:---|
| **Number** | **Exhibit Description** |
| <br> (a)(iii) | [Second Amendment to Management Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824001057/abf-html7245_ex99d1aiii.htm) Schedule B by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated January 26, 2024, is incorporated by reference to Post-Effective Amendment No. 412 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed February 23, 2024 |
| <br> (a)(iv) | [Third Amendment to Management Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824004873/abf-html7780_ex99d1aiv.htm) Schedule B by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated February 27, 2024, is incorporated by reference to Post-Effective Amendment No. 413 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed April 29, 2024 ("PEA No. 413") |
| <br> (a)(v) | [Fourth Amendment to Management Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824004873/abf-html7780_ex99d1av.htm) Schedule B by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated March 14, 2024, is incorporated by reference to PEA No. 413 |
| <br> (a)(vi) | [Fifth Amendment to Management Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824005650/abf-html7943_ex99d1avi.htm) Schedule B by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated April 15, 2024, is incorporated by reference to Post-Effective Amendment No. 414 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed May 24, 2024 ("PEA No. 414") |
| <br> (a)(vii) | [Sixth Amendment to Management Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824010265/abnoff-efp11230_ex99d1avii.htm) Schedule B by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated October 21, 2024, is incorporated by reference to the Post-Effective Amendment No. 419 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed November 14, 2024 ("PEA No. 419") |
| <br> (a)(viii) | [Seventh Amendment to Management Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322825001596/abf-efp14632_ex99d1aviii.htm) Schedule B by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated February 24, 2025, is incorporated by reference to the Post-Effective Amendment No. 427 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed February 27, 2025 ("PEA No. 427") |
| <br> (a)(ix) | [Eighth Amendment to Management Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322825010284/abdsif-efp17884_ex99d1aix.htm) Schedule B by and among American Beacon Funds, American Beacon Select Funds and American Beacon Advisors, Inc., dated June 20, 2025, is incorporated by reference to PEA No. 430 |
| <br> (b)(i) | [Investment Advisory Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322825010284/abdsif-efp17884_ex99d2bbi.htm) among American Beacon Funds, American Beacon Advisors, Inc. and DoubleLine Capital LP, dated June 18, 2025, is incorporated by reference to PEA No. 430 |
| <br> (b)(ii) | [Form of Amendment to Investment Advisory Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322825010284/abdsif-efp17884_ex99d2bbii.htm) among American Beacon Funds, American Beacon Advisors, Inc. and DoubleLine Capital LP, is incorporated by reference to PEA No. 430 |
| (7)<br> (a) | [Distribution Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824000854/abf-html7215_ex99e.htm) among American Beacon Funds, American Beacon Select Funds and Resolute Investment Distributors, Inc., dated December 29, 2023, is incorporated by reference to PEA No. 411 |
| <br> (b) | [First Amendment to Distribution Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824005650/abf-html7943_ex99e2.htm) among American Beacon Funds, American Beacon Select Funds and Resolute Investment Distributors, Inc., dated May 1, 2024, is incorporated by reference to PEA No. 414 |
| <br> (c) | [Second Amendment to Distribution Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824010265/abnoff-efp11230_ex99e3.htm) among American Beacon Funds, American Beacon Select Funds and Resolute Investment Distributors, Inc., effective October 21, 2024, is incorporated by reference to PEA No. 419 |
| <br> (d) | [Third Amendment to Distribution Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322825001596/abf-efp14632_ex99e4.htm) among American Beacon Funds, American Beacon Select Funds and Resolute Investment Distributors, Inc., effective February 18, 2025, is incorporated by reference to PEA No. 427 |
| <br> (e) | [Fourth Amendment to Distribution Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322825010284/abdsif-efp17884_ex99e5.htm) among American Beacon Funds, American Beacon Select Funds and Resolute Investment Distributors, Inc., dated June 20, 2025, is incorporated by reference to PEA No. 430 |
| (8) | Bonus, profit sharing or pension plans – (none) |
| (9)<br> (a) | [Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/0000950134-98-001610.txt) between Registrant and State Street Bank and Trust Company, dated December 1, 1997, is incorporated by reference to Post-Effective Amendment No. 24 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed February 26, 1998  |
| <br> (b) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322819003565/abf-html1235_ex99g2.htm) between Registrant and State Street Bank and Trust Company, dated May 9, 2019, is incorporated by reference to Post-Effective Amendment No. 353 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed May 30, 2019 |
| <br> (c) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322819006464/abf-html1768_ex99g3.htm) between Registrant and State Street Bank and Trust Company, dated May 13, 2019, is incorporated by reference to Post-Effective Amendment No. 355 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed October 25, 2019 |
| <br> (d) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322819006663/abf-html1789_ex99g4.htm) between Registrant and State Street Bank and Trust Company, dated October 15, 2019, is incorporated by reference to Post-Effective Amendment No. 357 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed November 22, 2019  |
| <br> (e) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820000563/abtfstbf-html1952_ex99g5.htm) between Registrant and State Street Bank and Trust Company, effective January 22, 2020, is incorporated by reference to Post-Effective Amendment No. 362 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed February 14, 2020 |
| (f) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820003233/abf-html2557_ex99g6.htm) between Registrant and State Street Bank and Trust Company, dated April 15, 2020, is incorporated by reference to Post-Effective Amendment No. 368 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed May 28, 2020 ("PEA No. 368") |

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**7** 

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| | |
|:---|:---|
| **Number** | **Exhibit Description** |
| <br> (g) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820005384/abtfstbf-html2924_ex99g7.htm) between Registrant and State Street Bank and Trust Company, dated July 31, 2020, is incorporated by reference to Post-Effective Amendment No. 374 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed August 28, 2020 ("PEA No. 374") |
| <br> (h) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820005750/abf-html2947_99g8.htm) between Registrant and State Street Bank and Trust Company, dated August 27, 2020, is incorporated by reference to Post-Effective Amendment No. 377 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed September 10, 2020 |
| <br> (i) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820007047/abf-html3062_ex99g9.htm) between Registrant and State Street Bank and Trust Company, dated October 8, 2020, is incorporated by reference to Post-Effective Amendment No. 381 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed October 28, 2020 ("PEA No. 381") |
| <br> (j) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820007859/abahltrcf-html3098_ex99g10.htm) between Registrant and State Street Bank and Trust Company, effective November 2, 2020, is incorporated by reference to Post-Effective Amendment No. 383 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed December 14, 2020 ("PEA No. 383") |
| <br> (k) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322821004606/abftff-html3965_ex99g11.htm) between Registrant and State Street Bank and Trust Company, effective August 3, 2021, is incorporated by reference to Post-Effective Amendment No. 389 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed August 27, 2021 ("PEA No. 389") |
| <br> (l) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322823000743/abf-html5991_ex99g12.htm) between Registrant and State Street Bank and Trust Company, dated February 14, 2023, is incorporated by reference to PEA No. 401 |
| <br> (m) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322823004897/abahl-html6696_ex99g13.htm) between Registrant and State Street Bank and Trust Company, dated August 4, 2023, is incorporated by reference to Post-Effective Amendment No. 407 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed August 16, 2023 ("PEA No. 407") |
| <br> (n) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824005650/abf-html7943_ex99g14.htm) between Registrant and State Street Bank and Trust Company, dated May 15, 2024, is incorporated by reference to PEA No. 414 |
| <br> (o) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824010265/abnoff-efp11230_ex99g15.htm) between Registrant and State Street Bank and Trust Company, dated October 29, 2024, is incorporated by reference to PEA No. 419 |
| <br> (p) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322825001596/abf-efp14632_ex99g16.htm) between Registrant and State Street Bank and Trust Company, dated February 24, 2025, is incorporated by reference to PEA No. 427 |
| <br> (q) | [Amendment to Custodian Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322825010284/abdsif-efp17884_ex99g17.htm) between Registrant and State Street Bank and Trust Company, effective June 20, 2025, is incorporated by reference to PEA No. 430 |
| (10) | [Amended and Restated Plan Pursuant to Rule 18f-3](https://www.sec.gov/Archives/edgar/data/809593/000113322821005494/abf-html4112_ex99n.htm), dated November 12, 2019, is incorporated by reference to Post-Effective Amendment No. 391 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed October 28, 2021  |
| (11) | [Opinion and consent of counsel — (filed herewith)](abfd-efp17885_ex9911.htm) |
| (12) | Opinion of Counsel on Tax Matters – (to be filed by subsequent amendment) |
| (13) | Other Material Contracts |
| <br> (a)(i) | [Transfer Agency Services Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322823001391/abdwif-html6119_99h1a.htm) between SS&C GIDS, Inc. and American Beacon Funds, effective February 1, 2023, is incorporated by reference to Post-Effective Amendment No. 402 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed March 22, 2023 |
| <br> (a)(ii) | [First Amendment to Transfer Agency Services](https://www.sec.gov/Archives/edgar/data/809593/000113322823004897/abahl-html6696_ex99h1b.htm) Agreement between SS&C GIDS, Inc. and American Beacon Funds, effective August 3, 2023, is incorporated by reference to PEA No. 407 |
| <br> (a)(iii) | [Amendment to Transfer Agency Services Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824005650/abf-html7943_ex99h1c.htm) between SS&C GIDS, Inc. and American Beacon Funds, effective May 1, 2024, is incorporated by reference to PEA No. 414 |
| <br> (a)(iv) | [Amendment to Transfer Agency Services Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824010265/abnoff-efp11230_ex99h1d.htm) between SS&C GIDS, Inc. and American Beacon Funds, effective November 1, 2024, is incorporated by reference to PEA No. 419 |
| <br> (a)(v) | [Amendment to Transfer Agency Services Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322825001596/abf-efp14632_ex99h1e.htm) between SS&C GIDS, Inc. and American Beacon Funds, effective February 24, 2025, is incorporated by reference to PEA No. 427 |
| <br> (a)(vi) | [Amendment to Transfer Agency Services Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322825010284/abdsif-efp17884_ex99h1f.htm) between SS&C GIDS, Inc. and American Beacon Funds, effective July 8, 2025, is incorporated by reference to PEA No. 430 |
| <br> (b)(i) | [Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322823004897/abahl-html6696_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, is incorporated by reference to PEA No. 407 |
| (b)(ii) | [First Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820007047/abf-html3062_ex99h2b.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 May 8, 2018, is incorporated by reference to PEA No. 381 |

---

**8**

------

---

| | |
|:---|:---|
| **Number** | **Exhibit Description** |
| <br> (b)(iii) | [Second Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820007047/abf-html3062_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, is incorporated by reference to PEA No. 381 |
| <br> (b)(iv) | [Third Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820007047/abf-html3062_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, is incorporated by reference to PEA No. 381 |
| <br> (b)(v) | [Fourth Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820007047/abf-html3062_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, is incorporated by reference to PEA No. 381 |
| <br> (b)(vi) | [Fifth Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820007047/abf-html3062_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, is incorporated by reference to PEA No. 381 |
| <br> (b)(vii) | [Sixth Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820007047/abf-html3062_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, is incorporated by reference to PEA No. 381 |
| <br> (b)(viii) | [Seventh Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820007047/abf-html3062_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, is incorporated by reference to PEA No. 381 |
| <br> (b)(ix) | [Eighth Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820007047/abf-html3062_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, is incorporated by reference to PEA No. 381 |
| <br> (b)(x) | [Ninth Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820007047/abf-html3062_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, is incorporated by reference to PEA No. 381 |
| <br> (b)(xi) | [Tenth Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820007859/abahltrcf-html3098_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, is incorporated by reference to PEA No. 383 |
| <br> (b)(xii) | [Eleventh Amendment](https://www.sec.gov/Archives/edgar/data/809593/000113322821004606/abftff-html3965_ex99h2l.htm) 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, is incorporated by reference to PEA No. 389 |
| <br> (b)(xiii) | [Twelfth Amendment](https://www.sec.gov/Archives/edgar/data/809593/000113322822003708/abf-html5066_99h2m.htm) 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, is incorporated by reference to Post-Effective Amendment No. 395, to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed May 27, 2022  |
| <br> (b)(xiv) | [Thirteenth Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322823000743/abf-html5991_ex99h2n.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., effective January 31, 2023, is incorporated by reference to PEA No. 401 |
| <br> (b)(xv) | [Fourteenth Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322823004897/abahl-html6696_ex99h2o.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., effective as of August 15, 2023, is incorporated by reference to PEA No. 407 |
| <br> (b)(xvi) | [Fifteenth Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824000854/abf-html7215_ex99h2p.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., effective as of January 19, 2024, is incorporated by reference to PEA No. 411 |
| <br> (b)(xvii) | [Sixteenth Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824005650/abf-html7943_ex99h2q.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., effective as of May 1, 2024, is incorporated by reference to PEA No. 414 |
| (b)(xviii) | [Seventeenth Amendment to the Sub-Administrative Services Fee Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824010265/abnoff-efp11230_ex99h2r.htm) between American Beacon Funds, American Beacon Select Funds, American Beacon Institutional Funds Trust and American Beacon Advisors, Inc., effective as of October 21, 2024, is incorporated by reference to PEA No. 419 |

---

**9** 

------

---

| | |
|:---|:---|
| **Number** | **Exhibit Description** |
| <br> (c)(i) | [Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322817006171/h10047366_ex99h2a.htm) between the American Beacon Funds and State Street Bank and Trust Company, dated February 16, 2017, is incorporated by reference to Post-Effective Amendment No. 300 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed October 23, 2017 ("PEA No. 300") |
| <br> (c)(ii) | [Joinder and First Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322817006171/h10047366_ex99h2b.htm) between the American Beacon Funds and State Street Bank and Trust Company, dated June 21, 2017, is incorporated by reference to PEA No. 300 |
| <br> (c)(iii) | [Second Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322817006171/h10047366_ex99h2c.htm) between the American Beacon Funds and State Street Bank and Trust Company, dated September 18, 2017, is incorporated by reference to PEA No. 300 |
| <br> (c)(iv) | [Third Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322819003430/abssiaif-html1220_ex99h2d.htm) between the American Beacon Funds and State Street Bank and Trust Company, dated December 31, 2018, is incorporated by reference to Post-Effective Amendment No. 351 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed May 15, 2019 |
| <br> (c)(v) | [Fourth Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820005384/abtfstbf-html2924_ex99h2e.htm) between the American Beacon Funds and State Street Bank and Trust Company, dated September 6, 2019, is incorporated by reference to PEA No. 374 |
| <br> (c)(vi) | [Fifth Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820003233/abf-html2557_ex99h2e.htm) between the American Beacon Funds and State Street Bank and Trust Company, dated May 12, 2020, is incorporated by reference to PEA No. 368 |
| <br> (c)(vii) | [Sixth Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322820003788/abtfstbf-html2642_ex99h2f.htm) between the American Beacon Funds and State Street Bank and Trust Company, dated May 27, 2020, is incorporated by reference to Post-Effective Amendment No. 370 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed June 18, 2020 |
| <br> (c)(viii) | [Seventh Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322822007946/abf-html5779_ex99h3h.htm) between the American Beacon Funds and State Street Bank and Trust Company, dated November 29, 2022, is incorporated by reference to Post-Effective Amendment No. 399 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed December 23, 2022  |
| <br> (c)(ix) | [Eighth Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322823000743/abf-html5991_ex99h3i.htm) between the American Beacon Funds and State Street Bank and Trust Company, effective January 31, 2023, is incorporated by reference to PEA No. 401 |
| <br> (c)(x) | [Ninth Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322823004897/abahl-html6696_ex99h3j.htm) between the American Beacon Funds and State Street Bank and Trust Company, effective August 4, 2023, is incorporated by reference to PEA No. 407 |
| <br> (c)(xi) | [Tenth Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824005650/abf-html7943_ex99h3k.htm) between the American Beacon Funds and State Street Bank and Trust Company, effective May 1, 2024, is incorporated by reference to PEA No. 414 |
| <br> (c)(xii) | [Eleventh Amendment to Securities Lending Authorization Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322824010265/abnoff-efp11230_ex99h3l.htm) between the American Beacon Funds and State Street Bank and Trust Company, effective October 14, 2024, is incorporated by reference to PEA No. 419 |
| <br> (c)(xiii) | [Twelfth Amendment to Securities Lending Authorization](https://www.sec.gov/Archives/edgar/data/809593/000113322825001596/abf-efp14632_ex99h3m.htm) Agreement between the American Beacon Funds and State Street Bank and Trust Company, effective February 24, 2025, is incorporated by reference to PEA No. 427 |
| <br> (d) | [Service Plan Agreement](https://www.sec.gov/Archives/edgar/data/809593/000095012309029012/d68564exv99wxhyx5y.htm) for the American Beacon Funds Investor Class, dated March 6, 2009, is incorporated by reference to Post-Effective Amendment No. 77, to the Registrant's Registration Statement on Form N-1A, File No. 033-11387 filed August 3, 2009  |
| <br> (e)(i) | [Fee Waiver/Expense Reimbursement Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322823006626/abf-html7075_ex99h10b.htm) for American Beacon DoubleLine Floating Rate Income Fund (formerly, American Beacon FEAC Floating Rate Income Fund), effective January 1, 2024, is incorporated by reference to Post-Effective Amendment No. 410 to the Registrant's Registration Statement on Form N-1A, File No. 033-11387, filed December 29, 2023  |
| <br> (e)(ii) | [Form of Fee Waiver/Expense Reimbursement Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322825010284/abdsif-efp17884_ex99h10dii.htm) for American Beacon DoubleLine Floating Rate Income Fund, is incorporated by reference to PEA No. 430 |
| &nbsp;&nbsp; &nbsp;&nbsp;(e)(iii) | &nbsp;&nbsp;[Form of Fee Waiver/Expense Reimbursement Agreement](https://www.sec.gov/Archives/edgar/data/809593/000113322825010284/abdsif-efp17884_ex99h10diii.htm) for American Beacon DoubleLine Select Income Fund, is incorporated by reference to PEA No. 430 |
| (14)<br> (a) | [Consent of Independent Registered Public Accounting Firm for American Beacon DoubleLine Floating Rate Income Fund – (filed herewith)](abfd-efp17885_ex9914a.htm) |
| <br> (b) | [Consent of Independent Registered Public Accounting Firm for DoubleLine Floating Rate Fund and DoubleLine Infrastructure Income Fund – (filed herewith)](abfd-efp17885_ex9914b.htm)  |
| (15) | Financial Statements Omitted Pursuant to Item 14(a)(1) – (not applicable) |
| (16) | [Powers of Attorney – (filed herewith)](abfd-efp17885_ex9916.htm) |
| (17) | <u><u>Other Exhibits</u></u> |
| <br> (a) | [Form of Proxy Card - (filed herewith)](abfd-efp17885_ex9917a.htm) |
| (18) | Filing fee tables - (not applicable) |

---

**Item 17. Undertakings**

(1) The undersigned Registrant agrees that prior to any public reoffering of the securities registered through the use of a prospectus which is a part of this Registration Statement by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c) of the Securities Act [17 CFR 230.145c], the reoffering prospectus will contain the information called for by the applicable registration form for the re-offerings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.

**10**

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(2) The undersigned Registrant agrees that every prospectus that is filed under paragraph (1) above will be filed as a part of an amendment to the Registration Statement and will not be used until the amendment is effective, and that, in determining any liability under the 1933 Act, each post-effective amendment shall be deemed to be a new registration statement for the securities offered therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering of them.

(3) The undersigned Registrant undertakes to file an opinion of counsel supporting the tax matters and consequences to shareholders discussed in the Combined Proxy Statement and Prospectus in a Post-Effective Amendment to this Registration Statement.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant has duly caused this Registration Statement on Form N-14 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Irving and the State of Texas on September 29, 2025.

---

| | |
|:---|:---|
| AMERICAN BEACON FUNDS | AMERICAN BEACON FUNDS |
| By: | /s/ Gregory J. Stumm |
|  | Gregory J. Stumm |
|  | President |

---

Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement on Form N-14 has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **<u>Signature</u>** | **<u>Title</u>** | **<u>Date</u>** |
| /s/ Gregory J. Stumm | President (Principal Executive Officer) | September 29, 2025 |
| Gregory J. Stumm |  |  |
| /s/ Sonia L. Bates | Treasurer (Principal Financial Officer and | September 29, 2025 |
| Sonia L. Bates | Principal Accounting Officer) |  |
| Gilbert G. Alvarado<sup>\*</sup> | Trustee | September 29, 2025 |
| Gilbert G. Alvarado |  |  |
| Gerard J. Arpey<sup>\*</sup> | Trustee | September 29, 2025 |
| Gerard J. Arpey |  |  |
| Eugene J. Duffy<sup>\*</sup> | Trustee | September 29, 2025 |
| Eugene J. Duffy |  |  |
| Claudia A. Holz<sup>\*</sup> | Trustee | September 29, 2025 |
| Claudia A. Holz |  |  |
| Douglas A. Lindgren<sup>\*</sup> | Chair and Trustee | September 29, 2025 |
| Douglas A. Lindgren |  |  |
| Barbara J. McKenna<sup>\*</sup> | Trustee | September 29, 2025 |
| Barbara J. McKenna |  |  |
| Janet C. Smith<sup>\*</sup> | Trustee | September 29, 2025 |
| Janet C. Smith |  |  |
| Paul Zemsky<sup>\*</sup> | Trustee | September 29, 2025 |
| Paul Zemsky |  |  |

---

**11** 

------

---

| | |
|:---|:---|
| \* By: | /s/ Rosemary K. Behan |
|  | Rosemary K. Behan |
|  | Attorney-In-Fact |

---

**12**

------

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Type** | **Description** |
| EX-99.(11) | [Opinion and consent of counsel](abfd-efp17885_ex9911.htm) |
| EX-99.(14)(a) | [Consent of Independent Registered Public Accounting Firm for American Beacon DoubleLine Floating Rate Income Fund](abfd-efp17885_ex9914a.htm) |
| EX-99.(14)(b) | [Consent of Independent Registered Public Accounting Firm for DoubleLine Floating Rate Fund and DoubleLine Infrastructure Income Fund](abfd-efp17885_ex9914b.htm) |
| EX-99.(16) | [Powers of Attorney](abfd-efp17885_ex9916.htm) |
| EX-99.(17)(a) | [Form of Proxy Card](abfd-efp17885_ex9917a.htm) |

---

**13**

## Ex-99.(11)

**Exhibit 99.(11)**

---

| | |
|:---|:---|
| ![](cover.jpg) | **K&L Gates LLP**<br> 1601 K Street, N.W.<br> Washington, DC 20006<br> T +1 202 778 9000 F +1 202 778 9100 klgates.com |

---

September 29, 2025

American Beacon Funds<br> 220 East Las Colinas Boulevard, Suite 1200<br> Irving, Texas 75039

Ladies and Gentlemen:

We have acted as counsel to American Beacon Funds, a business trust formed under the laws of the Commonwealth of Massachusetts (the "<u>Trust</u>") in connection with the Trust's registration statement on Form N-14 (the "<u>Registration Statement</u>"), to be filed with the U.S. Securities and Exchange Commission (the "<u>Commission</u>") on or about September 29, 2025, registering an indefinite number of Y Class and Investor Class shares of beneficial interest in American Beacon DoubleLine Floating Rate Income Fund and American Beacon DoubleLine Select Income Fund, each a series of the Trust (each an "<u>Acquiring Fund</u>" and together, the "<u>Acquiring Funds</u>"), (the "<u>Shares</u>"), to be issued pursuant to Agreements and Plans of Reorganization and Termination (each an "<u>Agreement</u>" and together, the "<u>Agreements</u>") adopted by the Trust, on behalf of the Acquiring Funds, and DoubleLine Funds Trust on behalf of its DoubleLine Floating Rate Fund and DoubleLine Select Income Fund (until October 28, 2025, designated the DoubleLine Infrastructure Income Fund) series, (each a "<u>Target Fund</u>" and together, the "<u>Target Funds</u>"), under the Securities Act of 1933, as amended (the "<u>Securities Act</u>").

The Agreements provide for (1) the transfer of all the assets of each Target Fund to the corresponding Acquiring Funds in exchange solely for Shares of the Acquiring Fund having an aggregate net asset value equal to the Target Fund's net assets and the Acquiring Fund's assumption of all the liabilities of the Target Fund; (2) the distribution of the Shares *pro rata* to the Target Fund's shareholders in exchange for their shares of the Target Fund and in complete liquidation thereof; and (3) the termination of the Target Fund, all on the terms and conditions set forth in the Agreements.

This opinion letter is being delivered at your request in accordance with the requirements of paragraph 29 of Schedule A of the Securities Act and Item 16(11) of Form N-14 under the Securities Act.

For purposes of this opinion letter, we have examined originals or copies, certified or otherwise identified to our satisfaction, of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the combined proxy statement and prospectus, including the forms
of the Agreements attached as Appendix A thereto, and statement of additional information filed as part of the Registration Statement
(collectively, the " <u>Proxy Statement/Prospectus</u> ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Trust's declaration of trust and bylaws in effect on the
date of this opinion letter; and

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| &nbsp;&nbsp;![](cover.jpg) | &nbsp;&nbsp; Page 2<br> September 29, 2025 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the resolutions adopted by the trustees of the Trust relating to
the Registration Statement and the Agreements, the establishment of the Acquiring Funds and the Shares, and the authorization for issuance
and delivery of the Shares pursuant to the Agreements.

We also have examined and relied on certificates of public officials and, as to certain matters of fact that are material to our opinions, we have relied on a certificate of an officer of the Trust. We have not independently established any of the facts on which we have so relied.

For purposes of this opinion letter, we have assumed the accuracy and completeness of each document submitted to us, the genuineness of all signatures on original documents, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as facsimile, electronic, certified, conformed, or photostatic copies thereof, and the due execution and delivery of all documents where due execution and delivery are prerequisites to the effectiveness thereof. We have further assumed the legal capacity of natural persons, that persons identified to us as officers of the Trust are actually serving in such capacity, and that the representations of officers of the Trust are correct as to matters of fact. We have not independently verified any of these assumptions.

The opinions expressed in this opinion letter are based on the facts in existence and the laws in effect on the date hereof and are limited to the laws of the Commonwealth of Massachusetts and the provisions of the Investment Company Act of 1940 that are applicable to equity securities issued by registered open-end investment companies. We are not opining on, and we assume no responsibility for, the applicability to or effect on any of the matters covered herein of any other laws.

Based upon and subject to the foregoing, it is our opinion that (1) the Shares to be issued pursuant to the Registration Statement, when issued and delivered to a Target Fund in accordance with the terms and conditions of the applicable Agreement, will be validly issued, and (2) the shareholders of the Target Fund receiving the Shares in exchange for their shares of the Target Fund and in complete liquidation of the Target Fund as provided by the applicable Agreement will have no obligation to make any further payments for the receipt of the Shares or contributions to the Trust solely by reason of their ownership of the Shares.

This opinion is rendered solely in connection with the filing of the Registration Statement. We hereby consent to the filing of this opinion with the Commission in connection with the Registration Statement and to the reference to this firm's name in the Proxy Statement/Prospectus. In giving this consent, we do not thereby admit that we are experts with respect to any part of the Registration Statement or Proxy Statement/Prospectus within the meaning of the term "expert" as used in Section 11 of the Securities Act or the rules and regulations promulgated thereunder by the Commission, nor do we admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission promulgated thereunder.

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| Very truly yours, |
| /s/ K&L Gates LLP |

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## Ex-99.(14)(A)

**Exhibit 99.(14)(a)**

<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>

We hereby consent to the incorporation by reference in this Registration Statement on Form N-14 of American Beacon Funds of our report dated October 29, 2024, relating to the financial statements and financial highlights of American Beacon DoubleLine Floating Rate Income Fund (formerly American Beacon FEAC Floating Rate Income Fund), which appear in American Beacon Funds' Annual Report on Form N-CSR for the period ended August 31, 2024. We also consent to the references to us under the headings "Questions and Answers", "Other Service Providers", "Financial Statements", "Financial Highlights", "Appendix D: Financial Highlights", "Disclosure of Portfolio Holdings", and "Appendix A: Forms of Agreement and Plan of Reorganization and Termination" in such Registration Statement.

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| /s/ PricewaterhouseCoopers LLP |
| Boston, Massachusetts |
| September 29, 2025 |

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## Ex-99.(14)(B)

**Exhibit 99.(14)(b)**

<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>

We hereby consent to the incorporation by reference in this Registration Statement on Form N-14 of American Beacon Funds of our report dated May 21, 2025, relating to the financial statements and financial highlights of DoubleLine Floating Rate Fund and DoubleLine Infrastructure Income Fund, which appear in DoubleLine Funds Trust's Certified Shareholder Report on Form N-CSR for the year ended March 31, 2025. We also consent to the references to us under the headings "Questions and Answers", "Financial Highlights", "Representations and Warranties", "Appendix D: Financial Highlights", "Disclosure of Portfolio Holdings" and "Financial Statements" in such Registration Statement.

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| /s/ PricewaterhouseCoopers LLP |
| Los Angeles, California |
| September 26, 2025 |

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## Ex-99.(16)

**Exhibit 99.(16)**

**POWER OF ATTORNEY**

I, <u>Gilbert G. Alvarado</u>, Trustee of the American Beacon Funds (the "Trust"), hereby constitute and appoint Rosemary K. Behan and Teresa A. Oxford, 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 Trust for the Registration Statement on Form N-14 for the American Beacon DoubleLine Floating Rate Income and American Beacon DoubleLine Select Income Funds, under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trust 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 25<sup>th</sup> day of August 2025.

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| /s/ Gilbert G. Alvarado |
| Gilbert G. Alvarado, Trustee |

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**POWER OF ATTORNEY**

I, <u>Gerard J. Arpey</u>, Trustee of the American Beacon Funds (the "Trust"), hereby constitute and appoint Rosemary K. Behan and Teresa A. Oxford, 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 Trust for the Registration Statement on Form N-14 for the American Beacon DoubleLine Floating Rate Income Fund and American Beacon DoubleLine Select Income Fund, under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trust 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 25<sup>th</sup> day of August 2025.

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| /s/ Gerard J. Arpey |
| Gerard J. Arpey, Trustee |

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**POWER OF ATTORNEY**

I, <u>Eugene J. Duffy</u>, Trustee of the American Beacon Funds (the "Trust"), hereby constitute and appoint Rosemary K. Behan and Teresa A. Oxford, 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 Trust for the Registration Statement on Form N-14 for the American Beacon DoubleLine Floating Rate Income Fund and American Beacon DoubleLine Select Income Fund, under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trust 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 25<sup>th</sup> day of August 2025.

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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 "Trust"), hereby constitute and appoint Rosemary K. Behan and Teresa A. Oxford, 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 Trust for the Registration Statement on Form N-14 for the American Beacon DoubleLine Floating Rate Income Fund and American Beacon DoubleLine Select Income Fund, under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trust 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 25<sup>th</sup> day of August 2025.

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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 "Trust"), hereby constitute and appoint Rosemary K. Behan and Teresa A. Oxford, 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 Trust for the Registration Statement on Form N-14 for the American Beacon DoubleLine Floating Rate Income Fund and American Beacon DoubleLine Select Income Fund, under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trust 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 25<sup>th</sup> day of August 2025.

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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 "Trust"), hereby constitute and appoint Rosemary K. Behan and Teresa A. Oxford, 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 Trust for the Registration Statement on Form N-14 for the American Beacon DoubleLine Floating Rate Income Fund and American Beacon DoubleLine Select Income Fund, under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trust 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 25<sup>th</sup> day of August 2025.

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| /s/ Barbara J. McKenna |
| Barbara J. McKenna, Trustee |

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**POWER OF ATTORNEY**

I, <u>Janet C. Smith</u>, Trustee of the American Beacon Funds (the "Trust"), hereby constitute and appoint Rosemary K. Behan and Teresa A. Oxford, 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 Trust for the Registration Statement on Form N-14 for the American Beacon DoubleLine Floating Rate Income Fund and American Beacon DoubleLine Select Income Fund, under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trust 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 25<sup>th</sup> day of August 2025.

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| /s/ Janet C. Smith |
| Janet C. Smith, Trustee |

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**POWER OF ATTORNEY**

I, <u>Paul Zemsky</u>, Trustee of the American Beacon Funds (the "Trust"), hereby constitute and appoint Rosemary K. Behan and Teresa A. Oxford, 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 Trust for the Registration Statement on Form N-14 for the American Beacon DoubleLine Floating Rate Income Fund and American Beacon DoubleLine Select Income Fund, under the Securities Act of 1933 and/or the Investment Company Act of 1940 and any amendments thereto of the Trust 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 25<sup>th</sup> day of August 2025.

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| /s/ Paul Zemsky |
| Paul Zemsky, Trustee |

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## Ex-99.(17)(A)

**Exhibit 99.(17)(a)**

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