American Beacon Advisors [see profile] has dropped Newport Beach, California-based Metropolitan West Capital Management from the sub-advisory roster of two of its mutual funds, Large Cap Value and Small Cap Value. For the large cap fund, American Beacon tapped MFS [see profile] to join the sub-advisor lineup.

"On November 22, 2010, American Beacon Advisors, Inc. notified Metropolitan West Capital Management, LLC of its intent to terminate its services as a sub-advisor to the American Beacon Large Cap Value Fund," read American Beacon's SEC filing on December 1. [SEC filing]

MFS joins three other firms in managing the $8.5 billion fund: Barrow, Hanley, Mewhinney & Strauss, Inc, Brandywine Global Investment Management, LLC and Hotchkis and Wiley Capital Management, LLC.

Initially, MFS will handle about 10 percent of the fund's assets. MFS' portion will rise "as Fund flows, capacity constraints and other considerations by the Manager may require," according to the filing.

Also on November 22, American Beacon removed MetWest Capital from the sub-advisory lineup of its small-cap value fund. The $3 billion fund's other sub-advisors are Brandywine, The Boston Company Asset Management, LLC, Opus Capital Group, LLC, Barrow, Hanley, Mewhinney & Strauss, Inc, Hotchkis and Wiley and Dreman Value Management, LLC. 

Correction: A previous version of this story incorrectly reported that the American Beacon Small Cap Value fund is closed to new investors.

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE