Regulates the earliest stages of development of the anterior neural plate. Plays a role in forebrain development by inhibiting the expression of otx2 and pax6 in the rostral region of the anterior neural plate. Necessary for both neural differentiation and neural patterning. Controls Spemann organizer development. May act as a transcriptional repressor (By similarity). Interacts (via N-terminus) with zyx. Enters the cytoplasm in the presence of zyx. Belongs to the ANF homeobox family.