American Century Investments focuses on delivering superior, long-term risk-adjusted performance to clients worldwide. The decision to invest with us also enables our clients to make a meaningful impact by funding medical research dedicated to defeating life-threatening diseases.
Over 40% of American Century’s profits are paid to our controlling owner, the Stowers Institute for Medical Research, a world-class biomedical research organization. Since 2000, American Century’s dividend payments funding the institute’s work have totalled $1.7 billion.
With sustainable investing firmly rooted in our culture, American Century Investments’ views on ESG factors are integral to our corporate citizenship and business model.
“Sustainability isn’t just something we practice; it is part of who we are as a company and as global citizens,” said Jonathan Thomas, American Century president and chief executive officer. “With an ownership structure that directs over 40% of its profits to fund medical research, we attract employees motivated to make a difference and develop investment teams who make Environmental, Social, and Governance (ESG) criteria a fundamental part of their analysis.”
As active managers, we believe integrating material ESG factors into fundamental analysis contributes to better investment decisions. We view ESG issues as important inputs into fundamental analysis that can help mitigate downside risk or increase upside potential associated with ESG factors otherwise not captured by traditional financial analysis.
Our ESG integration process is guided by a three-layer analytical framework that is aligned with our fundamental analysis process and fiduciary duty. This overarching framework is applied to equity and fixed income strategies and seeks to 1) identify macro-level ESG issues impacting market dynamics, 2) determine which of these issues are relevant at the sector level, and 3) evaluate ESG materiality at the issuer level. As long-term investors, actively engaging with our investee companies and voting shares in the best interest of clients are integral components of our investment process and commitment to serving clients.
ESG Commentary from Victor Zhang, CIO
Our ESG integration approach is an evolution of how we invest, an extension of our relentless pursuit of client success. We believe that integrating material ESG factors into fundamental analysis contributes to better investment decisions. For more than a decade, we have incorporated ESG considerations into client portfolios. Over time, we have steadily expanded our ESG knowledge and resources, developed proprietary research tools and enhanced our investing capabilities.
Clients are the heart of who we are, and we proudly position our ESG program as client-focused and solutions-driven. While American Century emphasises ESG integration across our investment strategies, we fully appreciate the importance of delivering customised solutions so that clients may achieve their ESG investing and sustainable outcome objectives. We have extensive experience working with clients to design ESG solutions—ranging from screening and best-in-class tilting, to thematic and impact investing.
“Sustainable investing remains a strategic focus and firmwide commitment, and we will continue to add resources and adapt processes to optimally support this initiative,” says Chief Investment Officer Victor Zhang.
American Century Investments and Global Fund Search are not affiliated investment companies.
The vast majority of American Century’s investment strategies are subject to the incorporation of ESG considerations into the investment process employed by each strategy’s portfolio managers. When portfolio managers incorporate Environmental, Social and Governance (ESG) factors into an investment strategy, they consider those issues not captured by traditional financial analysis. When selecting investments, portfolio managers incorporate ESG factors into the portfolio’s existing asset class, time horizon, and objectives. Therefore, ESG factors may limit the investment opportunities available, and the portfolio may perform differently than those that do not incorporate ESG factors. Portfolio managers have ultimate discretion in how ESG issues may impact a portfolio’s holdings, and depending on their analysis, investment decisions may not be affected by ESG considerations.
American Century Investment Management (UK) Limited is authorised and regulated by the Financial Conduct Authority. American Century Investment Management (UK) Limited is registered in England and Wales. Registered number: 06520426. Registered office: 12 Henrietta Street, 4th Floor, London, WC2E 8LH.
American Century Investments (EU) GmbH is registered with the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)). American Century Investment Management, Inc. is not authorised by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)).
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