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American Beacon The London Company Income Equity Fund

Portfolio information as of March 31, 2016
  • 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; industry since 1987
  • Jonathan Moody, CFA; industry since 1990
  • Brian Campbell, CFA; industry since 2000
  • Mark DeVaul, CFA, CPA; industry since 1999

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

$956.1 Million  

Sub-Advisor (%)

The London Company of Virginia, LLC 100.0

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Investing in small- and medium-capitalization stocks may involve greater volatility and lower liquidity than larger company stocks. Investing in foreign securities may involve heightened risk due to currency fluctuations and economic and political risks. Investing in dividend-paying stocks may result in less earnings growth or capital appreciation than investing in non-dividend paying stocks. The use of fixed-income securities entails interest rate and credit risks. Because the Fund may invest in fewer issuers than a more diversified portfolio, the fluctuating value of a single holding may have a greater effect on the value of the Fund. The use of futures contracts for cash management may subject the Fund to losing more money than invested. 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.

TOTAL RETURNS

Share Class Inception Date CUSIP Symbol NAV QTR YTD 1 Year 3 Year* 5 Year* 10 Year /
Since
Inception*
Institutional05/29/2012024527400ABCIX14.462.392.39-0.1410.61-13.08
Investor05/29/2012024527509ABCVX14.412.332.33-0.4710.22-12.70
Y05/29/2012024527301ABCYX14.392.402.40-0.2410.50-13.00
A (without max sales charge)05/29/2012024527103ABCAX14.332.342.34-0.5010.14-12.58
A (with max sales charge)05/29/2012024527103ABCAX14.33-3.56-3.56-6.247.99-10.86
C (without max sales charge)05/29/2012024527202ABECX14.242.182.18-1.269.31-11.75
C (with max sales charge)05/29/2012024527202ABECX14.241.181.18-2.269.31-11.75
BenchmarkQTRYTD1 Year3 Year*5 Year*10 Year /
Since
Inception*
Russell 1000 Value Index 1.64 1.64 -1.54 9.38 - 13.80

 

Expense Ratios

Share ClassGrossNet1
Institutional 0.76 0.80
Investor 1.05 1.17
Y 0.84 0.85
A 1.14 1.18
C 1.89 1.90

 

SEC 30-Day Yield

Share ClassActualUnsubsidized2
Institutional 2.21 2.21
Investor 1.90 1.90
Y 2.13 2.13
A 1.73 1.73
C 1.11 1.11

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.

1The net expense ratio for the Institutional, Investor, Y, A and C Classes reflects fees and expenses that American Beacon Advisors recovered.

2The SEC 30-day yield is shown with (Actual) 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.

*Annualized.

A portion of fees charged to the Institutional and Y Classes of the Fund was waived from 2012 through 2014 and partially recovered in 2015. Performance prior to waiving fees was lower than actual returns shown from 2012 through 2014. A portion of fees charged to the Investor Class was waived in 2012 and 2013 and partially recovered in 2014 and 2015. Performance prior to waiving fees was lower than actual returns shown in 2012 and 2013. A portion of fees charged to the A Class was waived from 2012 through 2014 and partially recovered in 2015. Performance prior to waiving fees was lower than actual returns shown from 2012 through 2014. A portion of fees charged to the C Class was waived from 2012 through 2014 and partially recovered in 2015. Performance prior to waiving fees was lower than actual returns shown from 2012 through 2014. Specific information about any Fund may be found at americanbeaconfunds.com or in the prospectus. 

The Russell 1000® Value Index is an unmanaged index of those stocks in the Russell 1000® Index with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 and Russell 1000 Value Indexes are registered trademarks of Frank Russell Company.

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