American Beacon Advisors has added to its offerings two growth funds, one focused on small-caps and the other mid-caps, managed by Stephens Investment Management Group.
The small cap fund will now be branded as American Beacon Stephens Small Cap Growth Fund (A Class: SPWAX, Institutional Class: STSIX), and the mid cap fund, American Beacon Stephens Mid-Cap Growth Fund (A Class: SMFAX, Institutional Class: SFMIX.
The funds were launched by Stephens on December 1, 2005 and February 1, 2006, respectively. Stephens will remain as the sole sub-advisor to the Funds. The same team that has managed the Funds since their inception will continue in that role.
The small cap fund primarily invests in stocks of U.S. companies with $3 billion or less in market capitalization. Its managers focus on investing early in emerging growth companies with advantages over their competitors. Meanwhile, the mid-cap fund invests in stocks of U.S. companies with market capitalizations of $1 billion to $15 billion.
Both funds charge 75 basis points in management fees.
"We are confident that such a close-knit portfolio management team, which works well together and has the support of an established financial institution, will seek out the best growth opportunities among small-cap and mid-cap companies,” said Gene L. Needles Jr., American Beacon President and Chief Executive Officer.
"While we follow consistent and proven investment strategies, we are also well-aware that small-cap and mid-cap stocks can be volatile investments," said Ryan E. Crane, Stephens chief investment officer and the funds' lead portfolio manager. "As a result, we are careful not to put all of our shareholders' eggs in one basket or to let our emotions and assumptions lead us down the wrong path."
American Beacon Advisors, Inc. is a registered investment advisor owned by Lighthouse Holdings, Inc., which is owned by investment funds affiliated with Pharos Capital Group, LLC and TPG Capital.