American Beacon

American Beacon Sound Point Enhanced Income Fund

Portfolio information as of December 31, 2018

Summary
Performance
Overview

Investment Objective

The Fund seeks to provide high current income and, secondarily, capital appreciation.

expertise in corporate
credit strategies

Sound Point Capital Management, LP, the Fund’s sub-advisor, is a credit-oriented alternative asset manager established by Stephen Ketchum in 2008. Mr. Ketchum has more than two decades of experience in credit structuring, advisory and investment management, and a successful track record of building and managing teams. Sound Point’s primary investment objective is to preserve capital in all market conditions and to generate attractive rates of return with low volatility.

Firm inception: 2008

Portfolio managers:

Stephen Ketchum,
Managing Partner and Principal Owner,
industry since 1991
Rick Richert‌, Portfolio Manager,
industry since 1994
Garrick Stannard, Portfolio Manager and Senior Credit Analyst; industry since 2000

INVESTMENT Approach

Seeks to provide significant income above daily liquid options, coupled with capital appreciation.
Employs a fundamental, bottom-up approach to investing opportunistically in the credit markets.
Focuses on corporate credit, but could expand to other lending arenas.

differentiation

The Fund may invest in “off‐the-run” credits that are not followed by larger managers (e.g., smaller loan sizes).
The Fund’s structure allows the sub-advisor
to opportunistically invest across a variety of
credit-related instruments generally considered
less liquid than those available to typical open-end funds and exchange-traded funds.

important

An investment in the Fund may not be appropriate for all investors and is not designed to be a complete investment program. In addition, because of the risk associated with the Fund’s ability to invest in obligations and related instruments of varying levels of seniority, including subordinated debt obligations, high yield securities, securities of distressed and defaulted issuers, delayed funding loans, illiquid securities, unsecured obligations, collateralized loan obligations, credit-linked notes, and derivatives and the Fund’s ability to use leverage, an investment in the Fund should be considered speculative and involving a high degree of risk. Be aware that investing in the Fund may result in a loss of some or all of the amount invested.
Investment in the Fund should be avoided when an investor has a short-term investing horizon and/or cannot bear the loss of some or all of his or her investment. An investment in the Fund is not suitable for investors who need certainty about their ability to access all of the money they invest in the short term.

Symbols and NAVs

Class	Symbol	NAV*	Change
Y	SPEYX	10.25	0.00

*NAV values as of: 3/15/2019
Historical NAVs are viewable from the Daily NAVs page.

The Fund is a non-diversified, closed-end management investment company structured as an “interval fund” and designed primarily for long-term investors. The Fund’s use of fixed-income and variable-rate securities, such as loans and related instruments of varying levels of seniority, corporate debt and notes, high yield securities, CLOs, CLNs and derivatives entails interest rate, liquidity, market and credit risks. The Fund’s ability to borrow for investment purposes and otherwise use leverage can magnify these risks. There is no secondary market for the Fund’s shares, and the Fund expects that no secondary market will develop. Even though the Fund will make quarterly repurchase offers for its outstanding shares (currently expected to be for 5% per quarter), investors should consider shares of the Fund to be an illiquid investment. There is no guarantee that investors will be able to sell their shares at any given time or in the quantity desired. Please see the prospectus for a complete discussion of the Fund’s risks. There can be no assurances that the investment objectives of this Fund will be met.

For a prospectus containing more information, including expenses, click here. Read it carefully before you invest or send money. Past performance is no guarantee of future results.

Sound Point Enhanced Income Fund Section 16 Link

American Beacon is a registered service mark of American Beacon Advisors, Inc. American Beacon Sound Point Enhanced Income Fund is a service mark of American Beacon Advisors, Inc.

Total Returns

Share Class	Inception Date	CUSIP	Symbol	NAV	QTR*	YTD*	1 Year	3 Year	5 Year	10 Year / Since Inception*
Y	7/2/2018	024536104	SPEYX	9.95	-0.23	-	-	-	-	3.21

Benchmark	QTR*	YTD*	1 Year	3 Year	5 Year	10 Year / Since Inception*
Credit Suisse Leveraged Loan Index	-3.08	-	-	-	-	-1.25

Expense Ratios

Share Class	Gross	Net¹
Y (with leverage assumptions)²	3.71	2.27
Y (excluding leverage)	3.05	1.61

SEC 30-Day Yield

Share Class		Unsubsidized³
Y	5.79	-0.67
Distribution Frequency		Quarterly

Performance shown is historical and is not indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, click here.

Net asset value (NAV) is the value of one share of the portfolio excluding any sales charges.
*Not annualized. See the performance notes on the next page for more information.

¹The net expense ratio may reflect fees and expenses that American Beacon Advisors has contractually agreed to reduce and/or reimburse through December 31, 2019.

²The figures in this table are based on the assumption that the Fund sells $30,000,000 worth of shares and that the Fund borrows for investment purposes an amount equal to 11.11% of the Fund’s net assets attributable to the shares during that period. If the Fund raises more or less than this amount, or uses higher or lower levels of borrowing, these figures would differ.

³The SEC 30-day yield is shown with and without (Unsubsidized) the effect of any waivers/reimbursements during the period.

Important Information: All investing involves risk, including possible loss of principal. Indexes are unmanaged and one cannot invest directly in an index.

A portion of fees charged to each Class of the Fund has been waived since Fund inception. Performance prior to waiving fees was lower than actual returns shown since inception. Specific information about any Fund may be found at americanbeaconfunds.com or in the prospectus.

The Credit Suisse Leveraged Loan Index is an index designed to mirror the investable universe of the U.S. dollar-denominated leveraged loan market.

American Beacon is a registered service mark of American Beacon Advisors, Inc. American Beacon Sound Point Enhanced Income Fund is a service mark of American Beacon Advisors, Inc.

Sector Weightings (%)

Consumer, Non-cyclical	28.5
Consumer, Cyclical	25.2
Communications	21.0
Industrial	11.2
Technology	9.2
Financial	4.2
Basic Materials	0.6
Energy	0.1

Excludes cash.

Portfolio Statistics

Effective Maturity (years)	5.7
Effective Duration (years)	0.4
Average Loan Price	$96.5
Estimated Gross Yield to Maturity	8.3%

Security Type (%)

1st Lien Bank Loan	67.9
2nd Lien Bank Loan	32.1

Excludes cash.

Top 10 Holdings (%)

Callaway Golf Co. Term Loan B, Due 12/14/25	5.0
Quad Graphics Inc. 2018 Term Loan B, Due 6/30/26	4.9
Champ Acquisition Corp. Term Loan, Due 12/21/25	4.9
Securus Tech Holdings 2017 2nd Lien Term Loan, Due 11/1/25	4.8
RegionalCare Hospital Partners 2018 Term Loan B, Due 11/16/25	4.8
4L Technologies Inc. Term Loan B, Due 5/8/20	4.7
Imagine Print Solutions LLC Term Loan B1, Due 6/21/22	3.9
Asurion LLC 2nd Lien, Due 8/4/25	3.0
Kuehg Corp. 2nd Lien, Due 8/16/25	2.5
Bulldog Parent Inc. Term Loan, Due 9/5/26	2.5
Total Fund Holdings	80
Total Number of Issuers	71

MATURITY DISTRIBUTION (%)

0 to 3 Years	17.1
3 to 5 Years	4.3
5 to 7 Years	35.6
7 to 10 Years	43.0

LEVERAGE (%)

Net Assets borrowed from line of credit

This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor's. Reproduction and distribution of third-party content in any form is prohibited except with the prior written permission of the related third party. Third-party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. THIRD-PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD-PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes and should not be relied on as investment advice.

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

Duration is a measure of price sensitivity relative to changes in interest rates. The Fund's Estimated Yield to Maturity is calculated by averaging the yield to maturity of each security held in the Fund on a market-weighted basis. Yield to maturity data for each security is provided by the Fund’s custodian. If a security’s yield to maturity is not available from the custodian, data from Bloomberg is used. When not available from either source, a yield to maturity is assigned based on prior data. Yields reported gross of fees, the deduction of which will reduce the yield.

American Beacon is a registered service mark of American Beacon Advisors, Inc. American Beacon Sound Point Enhanced Income Fund is a service mark of American Beacon Advisors, Inc.

Bank Loan	82.8
Cash	12.4
Option Embedded Bond	4.8

BB	11.8
B	59.2
CCC	28.8
Not Rated	0.2

American Beacon Sound Point Enhanced Income Fund

Portfolio information as of December 31, 2018

Investment Objective

expertise in corporate
credit strategies

INVESTMENT Approach

differentiation

important

Symbols and NAVs

Total Fund Assets

Sub-Advisor (%)

Quarterly
Fund Materials

QUICK LINKs

Fund Overview Flyer*

Sub-Advisor Video

Total Returns

Expense Ratios

SEC 30-Day Yield

Sector Weightings (%)

Portfolio Statistics

Security Type (%)

Top 10 Holdings (%)

MATURITY DISTRIBUTION (%)

LEVERAGE (%)

Asset Allocation (%)

Credit Quality (%)

American Beacon Sound Point Enhanced Income Fund

Portfolio information as of December 31, 2018

Investment Objective

expertise in corporate credit strategies

INVESTMENT Approach

differentiation

important

Symbols and NAVs

Total Fund Assets

Sub-Advisor (%)

Quarterly Fund Materials

QUICK LINKs

Fund Overview Flyer*

Sub-Advisor Video

Total Returns

Expense Ratios

SEC 30-Day Yield

Sector Weightings (%)

Portfolio Statistics

Security Type (%)

Top 10 Holdings (%)

MATURITY DISTRIBUTION (%)

LEVERAGE (%)

Asset Allocation (%)

Credit Quality (%)

MY ACCOUNT

expertise in corporate
credit strategies

Quarterly
Fund Materials