Fort Worth TX-based American Beacon Advisors has launched the American Beacon The London Company Income Equity Fund (ABCAX), which is sub-advised by The London Company of Richmond, Virginia.
The fund will bet on 30 to 40 names, primarily with an average market capitalization of $70 billion or more. It charges a management fee of 45 basis points.
The fund's primary emphasis is on dividend income and its secondary emphasis is on preservation of capital, according to Gene Needles, American Beacon's chief executive. "We're in an unusual place right now where there is a strong demographic and secular demand for income," he told Money Managemeny Exeuctive. "As more baby boomersenter retirement age, they need to fund retirement with some sort of income."
Going forward, Needles added that the firm is contemplating launching another multi-manager, go-anywhere bond fund similar to the one it launched last July, dubbed the Flexible Bond Fund, which is sub-advised by PIMCO, Brandywine and GAM.
American Beacon manages the American Beacon Funds, which employ a "manager of managers" investment style. The firm managed $48.9 billion in assets as of March 31.
The London Company 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.