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U.S. News evaluated 325 Large Value Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
Note: Profile written for different share class.
The fund has returned 22.57 percent over the past year, 13.30 percent over the past three years, 19.03 percent over the past five years, and 7.48 percent over the past decade.
|Trailing Returns||Updated 01.31.2014|
|Year to date||-3.8%|
|3 Years (Annualized)||13.3%|
|5 Years (Annualized)||19.0%|
|10 Years (Annualized)||7.5%|
A conservative strategy and team-based approach have served American Beacon Large Cap Value well.
As of February 05, 2014, the fund has assets totaling almost $10.69 billion invested in 189 different holdings. Its portfolio consists primarily of shares of large companies.
Lately, the fund has been following a fairly conservative strategy, keeping its sector weightings in line with those of the S&P 500 in nearly all instances. One exception has been financial services. As of the end of the first quarter, 24 percent of the fund's stock portfolio was in financial companies. That's a pronounced overweight compared with the S&P 500, and it led to mixed results in 2010. Wells Fargo, for instance, was a winner, while Bank of America held the fund back.
The most notable change as of late has been a management swap. In November 2010, American Beacon canned MetWest, which had served as one of the fund's four subadvisers, and subsequently replaced it with MFS. Says Morningstar: "A manager change does not dim American Beacon Large Cap Value's prospects. ... Like the other subadvisors, the MFS team practices a low-turnover, fundamental value approach." The fund has returned 22.57 percent over the past year and 13.30 percent over the past three years.
Historically, the fund has produced solid, if not earth-shattering, returns. Since 2000, it has landed in the top half of Morningstar's large value category every year except for 2008. As of the end of the first quarter, its trailing 10-year returns landed it in the top 17 percent of that same category. The fund has returned 19.03 percent over the past five years and 7.48 percent over the past decade.
The fund's assets are divvied up among four different subadvisers. While each subadviser has its own unique strategy, common themes include a preference for undervalued stocks and a desire to keep a lid on turnover. The management teams also tend to place a premium on dividends and earnings growth potential. According to the fund's prospectus: "The decision to sell a stock is typically based on the belief that the company is no longer considered undervalued or shows deteriorating fundamentals, or that better investment opportunities exist in other stocks."
Role in Portfolio
Morningstar calls this fund a "core" holding.
Four firms subadvise the fund.
American Beacon Large Cap Value Fund has an expense ratio of 0.93 percent.
Like all stock funds, this one comes with some risks.