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American Beacon The London Company Income Equity Fund

Portfolio information as of September 30, 2014
  • Summary
  • Performance
  • Overview

Investment Objective

The Fund’s investment objective is current income, with a secondary objective of capital appreciation.

A TOTAL RETURN APPROACH TO INCOME EQUITY INVESTING

The London Company, a privately owned investment company, has nearly two decades of experience in managing a focused, conservative investment process that has produced a consistent performance record while seeking to mitigate risk in down markets.

Firm inception: 1994

Portfolio Managers:

  • Stephen Goddard, CFA, CIO, 27 years experience
  • Jonathan Moody, CFA, 24 years experience
  • Brian Campbell, CFA, 13 years experience
  • Mark DeVaul, CFA, CPA, 15 years experience

THINKING LIKE AN OWNER

The Fund tries to think like a business owner, buying companies at a discount to their private value.

  • The investment team focuses on identifying high cash return companies, which are generally better able to consistently generate free cash flow.
  • For each potential holding, the team analyzes the balance sheet using a proprietary optimization model to determine the company’s intrinsic value.

Total Fund Assets

$285.9 Million  

Sub-Advisor (%)

The London Company of Virginia, LLC 100.0

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The Fund may invest in futures contracts, which are a type of derivative investment. Investing in derivatives could result in losing more than the amount invested. Investing in foreign securities entails additional risk not associated with domestic securities, such as currency fluctuations, economic and political instability and differences in accounting standards. The Fund invests in small and/or mid-sized companies, which involves additional risks such as limited liquidity and greater volatility than larger companies. Credit risk is the risk that the issuer of a bond will fail to make timely payment of interest or principal; and the decline in an issuer's credit rating can cause the price of its bonds to go down. Investing in fixed-income securities entails interest rate risk, which is the risk that fixed-income securities will decrease in value with increases in market interest rates. Because the Fund may invest in fewer companies than a more diversified portfolio, the fluctuating value of a single holding may have a greater impact on the value of the Fund. Investing in dividend-paying stocks entails dividend risk, which is the risk that a stock may not experience the same level of earnings growth or capital appreciation as non-dividend paying stocks. 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.

American Beacon Funds and American Beacon The London Company Income Equity Fund are service marks of American Beacon Advisors, Inc.