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American Beacon Zebra Small Cap Equity Fund

Portfolio information as of March 31, 2013
  • Summary
  • Performance
  • Overview

Investment Objective

The Fund’s investment objective is long-term capital appreciation. The Fund seeks its objective by investing primarily in equity securities of small market capitalization companies.

ECONOMIC INTELLIGENCE

Zebra Capital Management, the Fund's sub-advisor, is a privately owned investment company founded by Yale University professor and pioneering investment researcher Roger Ibbotson, which pursues investment strategies based on systematically exploiting market characteristics supported by basic, economic principles.

Firm Inception: 2001

Portfolio Managers:

  • Roger Ibbotson, chief investment officer, 38 years experience
  • Eric Stokes, portfolio manager, 21 years experience

CAPTURING THE LIQUIDITY PREMIUM

The Fund’s manager seeks to capture the liquidity premium among public equities, taking positions in stocks that trade less frequently than similar issues.

  • “Liquidity premium" is defined as the additional return that may be realized on the sales of securities that are less liquid at the time of purchase.
  • The manager’s research shows that more liquid stocks tend to be priced at a premium, while lessliquid stocks are priced at a discount.
  • These issues may be fundamentally sound stocks that are less frequently traded because they have temporarily fallen out of favor.

Sub-Advisors (%)

Zebra Capital Management, LLC 100.0

 



The Fund may invest in futures contracts, which are a type of derivative investment. Investing in derivatives could result in losing more than the amount invested. Investing in foreign securities entails additional risk not associated with domestic securities, such as currency fluctuations, economic and political instability and differences in accounting standards. Investing in the securities of small capitalization companies involves greater risk and the possibility of greater price volatility than investing in larger capitalization and more established companies. At times, certain securities may have limited marketability and may be difficult to sell. Please see the prospectus for a complete discussion of the Fund’s risks. There can be no assurances that the investment objectives of this Fund will be met.

American Beacon Funds and American Beacon Zebra Small Cap Equity Fund are service marks of American Beacon Advisors, Inc.