American Beacon Large Cap Value Fund

Scorecard
4 / 5 Stars
Lipper
5 5 4 5 3
Zacks Investment Research
4 (Sell)
Standard & Poor's
4 / 5 Stars
TheStreet.com
A (Buy)

U.S. News evaluated 330 Large Value Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

See all American Beacon funds

See full Large Value rankings

See more fund rankings

Note: Profile written for different share class.

Performance

The fund has returned 23.47 percent over the past year, 16.93 percent over the past three years, 18.63 percent over the past five years, and 8.07 percent over the past decade. 

Trailing Returns Updated 06.30.2014
Year to date 7.6%
1 Year 23.5%
3 Years (Annualized) 16.9%
5 Years (Annualized) 18.6%
10 Years (Annualized) 8.1%

See more AVASX performance

Summary

A conservative strategy and team-based approach have served American Beacon Large Cap Value well.

As of July 03, 2014, the fund has assets totaling almost $12.03 billion invested in 188 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 23.47 percent over the past year and 16.93 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 18.63 percent over the past five years and 8.07 percent over the past decade.

Investment Strategy

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.

Management

Four firms subadvise the fund.

Fees

American Beacon Large Cap Value Fund has an expense ratio of 1.07 percent. 

See more AVASX fees

Risk

Like all stock funds, this one comes with some risks.

See more AVASX risk

Large Value Funds

Highest Returns (10-year)

See More Funds