The mutual fund, which started operations on 19 September 2013, offers five classes of shares, including ABEEX (Institutional Class), ABEVX (Investor Class), ABEGX (Y Class), ABEAX (A Class) and ABETX (C Class).
Atlanta-based registered investment advisor Earnest Partners, which had $21bn in assets under management as of 30 June 2013, has been appointed as the fund’s sub-advisor.
Using a diversified asset allocation strategy, the fund’s principle aim is to achieve long-term capital appreciation by investing in equity securities of companies based in emerging markets.
It incorporates a fundamental, bottom-up investment process, and seeks to outperform the MSCI Emerging Markets Index while mitigating downside risk and volatility.
Earnest Partners will depend on a three-step process, while choosing securities for the fund.
Firstly, the investment team will screen the securities using the firm’s internally developed Return Pattern Recognition system. Secondly, securities passing the initial screening will be subject to Earnest Partners’ rigorous fundamental analysis process to identify the best companies.
Ultimately, the adviser will create the portfolio to mitigate the possibility of underperforming the benchmark by using a risk management process that focuses on downside deviation.
Instituted in 1986, American Beacon Advisors serves defined benefit plans, defined contribution plans, foundations, endowments, corporations and other institutional investors, as well as retail clients.
