American Beacon Small Cap Value Fund (ABSAX)

American Beacon Small Cap Value Fund (ABSAX) is a small value mutual fund. This American Beacon Small Cap Value Fund invests mainly in equities of small companies.

American Beacon Small Cap Value Fund (ABSAX)

The investment objective of American Beacon Small Cap Value fund is to provide long-term capital appreciation and current income. This stock fund utilizes its assets to buy equity securities of small market capitalization U.S. companies. Its investments may include common stocks, preferred stocks, securities convertible into common stocks, real estate investment trusts (REITs), American Depositary Receipts (ADRs) and U.S. dollar-denominated foreign stocks trading on U.S. exchanges.

Fund Profile

American Beacon Fund

• Fund Inception Date: May 16, 2010
• Ticker Symbol: ABSAX
• CUSIP: 024524845
• Beta (3yr): 1.32
• Rank in category (YTD): 24%
• Category: Small Value
• Yield: 0.86%
• Capital Gains: 0%
• Expense Ratio: 1.34%
• Net Assets: $ 4.1 billion
• Number of Years Up: 1 year
• Number of Years Down: 1 year
• Annual Turnover Rate: 51.00%

Updated on 4/20/2013

Wyatt L. Crumpler has managed this fund since 2006. He first managed the Institutional Class of this fund (AVFIX). This Class A fund was later introduced in 2010. The dividend yield is 0.86%. The last dividend was distributed in December 2012 in the amount of $0.20. It also has annual expense ratio of 1.34%.

Morningstar analysts rank this small value mutual fund with 3-stars and Neutral rating. The fund has YTD return of 11.93%. The first year in the market, the fund returned in -4.64% in 2011 and the second year it performed better with 15.91%. Based on the load adjusted returns, the performance of the fund is as below:

• 1-year: 7.64%
• 3-year: 11.66%
• 5-year: 6.80%
• 10-year: 11.40%

Investors will need a minimum initial investment of $2,500 for brokerage account and $50 for the next investment. The same minimum initial investment applies for retirement (IRA) account. There is a limited option of 29 brokerages that provide the sale of this mutual fund. The fund is available in other classes such as Institutional Class (AVFIX), Investor Class (AVPAX), Advisor Class (AASSX), Retirement Class (ASCVX), Y Shares (ABSYX) and C Shares (ASVCX).

More: Top Performer Small Value Stock Mutual Funds 2012

The top 10 equity holdings as of December 2012 are Vishay Intertechnology Inc (0.8%), First Horizon National Corp (0.8%), Health South Corp (0.8%), Endurance Specialty Holdings Ltd (0.8%), Aspen Insurance Holdings Ltd (0.7%), Valassis Communications Inc (0.7%), Oshkosh Corp (0.7%), Rent-A-Center Inc (0.7%), Life Point Hospitals Inc (0.7%) and Synovus Financial Corp (0.7%). The fund had a total of 530 holdings. The top sectors are Financials (28.9%), Industrials (20.9%), Consumer Discretionary (14.0%) and Information Technology (12.2%).

According to the fund prospectus, the principal investment risks are Equity Investment Risk, Foreign Exposure Risk, Futures Contract Risk, Investment Risk, Issuer Risk, Market Events Risk, Market Risk, Securities Lending Risk, Securities Selection Risk, Small Capitalization Companies Risk, Value Stock Risk, etc.

Disclosure: No Position