American Beacon, Holland collaborate to offer Large Cap Growth Fund

By Toni Weeks

San Diego, March 26 - American Beacon Funds gave more details in a press release about its new fund, the American Beacon Holland Large Cap Growth Fund.

The fund launched on Friday with A class, C class, institutional class, Y class and investor class shares. The ticker symbols are LHGAX, LHGCX, LHGIX, LHGYX and LHGFX, respectively.

The new fund is the successor to the Lou Holland Growth Fund, which the fund acquired on March 23. The predecessor fund was a series of the Forum Funds launched in 1996 by minority- and women-owned investment management firm Holland Capital Management LLC. Holland will continue with the fund as sole subadviser, and the fund will also retain the same portfolio managers, Cynthia M. Thatcher, Wyatt L. Crumpler, Gene L. Needles Jr., Monica L. Walker and Carl R. Bhathena.

The portfolio managers will use a strategy combining bottom-up, detailed research, theme identification, collaboration among team members and a three- to five-year investment outlook to seek long-term growth of capital with dividend income as a secondary consideration.

The fund invests in companies that the investment team believes are poised for double-digit earnings growth, sell at reasonable valuations and possess strong management teams and industry leadership positions.

As previously reported, it will seek its objective by investing, under normal market conditions, 80% of its net assets, plus the amount of any borrowing for investment purposes, in equity securities of large-capitalization growth companies at the time of purchase.

A class shares will incur a 5.75% maximum sales charge, and C class shares are subject to a 1% maximum deferred sales charge. There are no other shareholder fees.

Annual fund operating expenses include management fees of 0.45%. There is a fee waiver agreement with the manager that limits the total annual fund operating expenses to 1.39% for A class, 2.14% for C class, 0.89% for institutional class, 0.99% for Y class and 1.27% for investor class shares.

Fort Worth-based American Beacon Advisors, Inc. is the fund's investment adviser.

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