American Beacon Advisors is terminating subadvisers Barrow, Hanley, Mewhinney & Strauss; Pzena Investment Management; and WEDGE Capital Management as a result of the firm's decision to close the $157 million American Beacon Mid-Cap Value Fund.
The active domestic midcap value equity fund will be closed and its assets merged into the $15 million American Beacon Shapiro SMID Cap Equity Fund, American Beacon announced in an SEC filing Tuesday.
Shapiro Capital Management is the sole subadviser of the active domestic smidcap value equity fund and will remain so following the completion of the reorganization on or around Oct. 28, according to the SEC filing.
Barrow, Hanley, Mewhinney & Strauss; Pzena Investment Management; and WEDGE Capital Management each manage one-third of the midcap value fund's assets, according to American Beacon's website.
An American Beacon spokesman said in an email that the firm "has an obligation to protect the interests of our fund shareholders" and expects they will benefit from Shapiro's lower subadvisory fees and long-term track record. The spokesman noted the reorganization is subject to shareholder approval and regulatory review and the firm has no further comment.
