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United States : BAHL & GAYNOR launch their second mutual fund

July 17, 2014

Bahl & Gaynor launched its second mutual fund. It s managing the fund as part of American Beacon Advisors family of funds. The fund s name is: the American Beacon Bahl & Gaynor Small Cap Growth Fund.

The mutual fund has already began operations, with American Beacon seeding it with $3 million to start. Matt McCormick, a Bahl & Gaynor portfolio manager, expects it to grow quickly.

McCormick said, there is demand for this product. American Beacon anticipates it will grow.

Bahl & Gaynor is the 5th largest investment advisory firm, with $11.7 billion in assets under advisement. It started its mutual fund 2 years ago. The AAM/Bahl & Gaynor Income Growth Fund, who operates through Monument, Advisors Asset Management, has grown to $38 million in assets.

The new fund trades under the ticker symbol GBSAX, invests in small stocks, while the first fund invests in large stocks. The strategies are similar. With the American Beacon fund, Bahl & Gaynor applies its high-quality, dividend-growth strategy to picking stocks. American Beacon sought an adviser to manage small stocks without generating much volatility, and it wants 80% of the portfolio to pay dividends.

Bahl & Gaynor will own between 65 and 85 stocks in the fund at any one time. It looks for companies with a competitive advantage, a sustainable business model and, when possible, a growing dividend.

The setup allows Bahl & Gaynor to offer its small-cap stock investment strategy to customers at a far smaller minimum investment than the $750,000 Bahl & Gaynor lists as its account minimum.

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Source: TendersInfo (India)

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