American Beacon Advisors Debuts American Beacon The London Company Income Equity Fund

FORT WORTH, Texas, May 29, 2012 /PRNewswire/ -- American Beacon Advisors ("American Beacon"), an experienced provider of investment advisory services to retail and institutional clients, announces the launch of the American Beacon The London Company Income Equity Fund (A Class: ABCAX; Institutional Class: ABCIX).

The Fund's sub-advisor is The London Company of Virginia, a Richmond, Virginia-based registered investment advisor with $3.2 billion in assets under management and $6.3 billion in total entity assets as of March 31, 2012. The London Company has more than 12 years of experience in successfully managing an income equity strategy.

As its primary goal, the Fund seeks to generate a highly competitive dividend income stream, and a secondary objective is investing in stocks that will deliver capital appreciation. The London Company will select the Fund's holdings using a proprietary approach to portfolio construction, typically investing in 30 to 40 stocks, primarily of companies with an average market capitalization of $70 billion or more, along with select smaller market capitalization companies and an allocation to preferred shares.

"In managing the Fund, we hope that our expertise will enable us to deliver consistent, superior total returns for investors," said Stephen M. Goddard, CFA, founder, Chief Investment Officer, Portfolio Manager and Managing Principal of The London Company. "Paying careful attention to downside protection of investor assets is an important aspect of meeting that objective."

"This new Fund offers investors an opportunity for exposure to a highly disciplined strategy designed specifically to capture dividends, protect assets, and grow capital, all in a single mutual fund structure," said Gene L. Needles Jr., American Beacon President and Chief Executive Officer. "Our collaboration with The London Company is the latest initiative in American Beacon's ongoing effort to provide investors with the products they need to reach their financial goals."

In selecting securities for the Fund, The London Company will rely on its innovative balance-sheet optimization model, which is designed to identify high-return-on-capital companies with the potential to weather economic conditions. These companies typically are over-capitalized and have excess amounts of cash on their balance sheets that may be used to fund organic growth or create value for shareholders in the form of higher dividends or share buy-back programs. The London Company also does all its own research and seeks independent sources of information that go beyond the pronouncements of management in a company it is considering for investment. The result is a fully diversified, strategically weighted, high-conviction portfolio.

"We start with the idea that the market is much less efficient at assessing risk than reward, which is why we believe that our time is much better spent looking down before looking up," said Mr. Goddard. "When we decide to make an investment in a stock, we are long-term investors and view each business as if we were an owner of that business."

For more information about American Beacon Advisors or the American Beacon The London Company Income Equity Fund, please contact Tony Kono of JCPR at 973-850-7323 or [email protected].

About American Beacon Advisors

Established in 1986, American Beacon Advisors, Inc. is an experienced provider of investment advisory services to institutional and retail markets. American Beacon Advisors serves defined benefit plans, defined contribution plans, foundations, endowments, corporations and other institutional investors, as well as retail clients. The firm also provides corporate cash management and fixed-income separate account management.

American Beacon Advisors manages the American Beacon Funds, a series of low-cost mutual funds. The Funds employ a "manager of managers" investment style and currently include international and domestic equity, fixed income and money market Funds. As of March 31, 2012, American Beacon Advisors had $48.9 billion in assets under management.   

About The London Company of Virginia

The London Company is a registered investment advisor based in Richmond, Virginia. The firm specializes in equity, income equity, and small cap portfolio management services, managing $3.2 billion in assets for institutional and high net worth individuals as of March 31, 2012. The investment team has more than three decades of experience in managing a conservative investment process, focused on producing a consistent performance record with relatively low downside risk. For more information about The London Company, please visit www.tlcadvisory.com.

You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and additional information regarding the Fund. To obtain a prospectus or summary prospectus, please contact your financial advisor, call 800-967-9009 or visit americanbeaconfunds.com. The prospectus and summary prospectus should be read carefully before investing.

All investing involves risk, including possible loss of principal. The Fund's primary risks include focused holdings risk, interest rate risk, small and medium capitalization risk and credit risk. These risks may expose the Fund's investments to greater price fluctuations than the market as a whole. Because the Fund is a focused portfolio of fewer companies, the increase or decrease of the value of a single stock may have a greater impact on the Fund's NAV and total return when compared to other diversified funds. Investing in debt securities entails interest rate risk, which is the risk that debt securities will decrease in value with increases in market interest rates. Investing in the securities of small and mid-capitalization companies involves greater risk and the possibility of greater price volatility than investing in larger capitalization and more established companies. Credit risk is the risk that the decline in an issuer's credit rating may have an adverse impact on the value of that security. Please see the prospectus for a complete discussion of these risks. There can be no assurances that the Fund will achieve its stated objectives.

Distributed by Foreside Fund Services, LLC.

American Beacon is a registered service mark of American Beacon Advisors, Inc. American Beacon Funds and American Beacon The London Company Income Equity Fund are service marks of American Beacon Advisors, Inc.

SOURCE American Beacon Advisors

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