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American Beacon Small Cap Value Fund

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

Investment Objective

A multi-manager Fund seeking long-term capital appreciation and current income primarily through investments in small market capitalization U.S. stocks.


The Fund is sub-advised by six complementary asset managers, seeking stocks with:

  • Barrow: Below-market valuations and above-market free cash flow yield.
  • Brandywine Global: Low valuations and attractive price momentum, combining quantitative analysis with fundamental insights.
  • Dreman: Proven track record of earnings growth, priced at below-market P/E ratios.
  • H&W: Sustainable cash flows and strong balance sheets, undervalued relative to tangible assets and long-term normal earnings power.
  • Hillcrest: Compelling value, growth and sentiment indicators, which help identify mispricing opportunities resulting from behavioral biases.
  • The Boston Company: Valuations in the bottom 40%; realizable earnings projections and cash flow; identifiable catalyst for change.


The multi-manager approach of the Fund enhances the diversification that can help lessen portfolio volatility in the long term.

  • The Fund owns more than 500 different holdings.
  • Its bottom-up portfolio construction is well diversified at the security, industry and stock levels.
  • The primary emphasis is on finding undervalued securities with above-average earnings growth expectations.

Total Fund Assets

$5.4 Billion  

Sub-Advisors (%)

Brandywine Global Investment Management, LLC 31.8
The Boston Company Asset Management, LLC 22.5
Barrow, Hanley, Mewhinney & Strauss, LLC 19.5
Hotchkis and Wiley Capital Management, LLC 11.5
Dreman Value Management, LLC 10.0
Hillcrest Asset Management, LLC 4.7

asset class spotlight*

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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 intrinsic value of stocks selected for the Fund may never be realized by the market, and the prices of value stocks may go down. While investing in value stocks may limit downside risk over time, the Fund may produce more modest gains than riskier stock funds as a trade-off for this potentially lower risk. The Fund invests in small and/or mid-sized companies, which involves additional risks such as limited liquidity and greater volatility than larger companies. The Fund may participate in a securities lending program. 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 Small Cap Value Fund are service marks of American Beacon Advisors, Inc.