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Is American Beacon London Company Income Equity Y (ABCYX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Mutual Fund Equity Report fund? Starting with American Beacon London Company Income Equity Y (ABCYX - Free Report) should not be a possibility at this time. ABCYX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
American Beacon is based in Irving, TX, and is the manager of ABCYX. The American Beacon London Company Income Equity Y made its debut in May of 2012 and ABCYX has managed to accumulate roughly $916.95 million in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 7.44%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 5.84%, which places it in the middle third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. ABCYX's standard deviation over the past three years is 18.68% compared to the category average of 16.6%. Over the past 5 years, the standard deviation of the fund is 16.62% compared to the category average of 14.77%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.89, the fund is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a negative alpha over the past 5 years of -0.82, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.
The mutual fund currently has 92.7% of its holdings in stocks, which have an average market capitalization of $227.62 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
Retail Trade
This fund's turnover is about 10%, so the fund managers are making fewer trades than the average comparable fund.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, ABCYX is a no load fund. It has an expense ratio of 0.79% compared to the category average of 0.99%. From a cost perspective, ABCYX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $100,000; each subsequent investment needs to be at least $50.
Bottom Line
Overall, American Beacon London Company Income Equity Y ( ABCYX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is American Beacon London Company Income Equity Y (ABCYX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Mutual Fund Equity Report fund? Starting with American Beacon London Company Income Equity Y (ABCYX - Free Report) should not be a possibility at this time. ABCYX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
American Beacon is based in Irving, TX, and is the manager of ABCYX. The American Beacon London Company Income Equity Y made its debut in May of 2012 and ABCYX has managed to accumulate roughly $916.95 million in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 7.44%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 5.84%, which places it in the middle third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. ABCYX's standard deviation over the past three years is 18.68% compared to the category average of 16.6%. Over the past 5 years, the standard deviation of the fund is 16.62% compared to the category average of 14.77%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.89, the fund is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a negative alpha over the past 5 years of -0.82, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.
The mutual fund currently has 92.7% of its holdings in stocks, which have an average market capitalization of $227.62 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Finance
- Retail Trade
This fund's turnover is about 10%, so the fund managers are making fewer trades than the average comparable fund.Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, ABCYX is a no load fund. It has an expense ratio of 0.79% compared to the category average of 0.99%. From a cost perspective, ABCYX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $100,000; each subsequent investment needs to be at least $50.
Bottom Line
Overall, American Beacon London Company Income Equity Y ( ABCYX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.