Health Care Impact Equity

Letter to Shareholders

This 2022 Impact Report highlights how your investment capital is supporting advances in medical treatments and technologies, helping to improve health care outcomes around the world while seeking to offer competitive investment returns. We are committed to delivering on these dual objectives.

The Health Care Impact Equity team seeks out companies whose products and R&D efforts support the United Nations Sustainable Development Goals* (U.N. SDGs), focusing on SDG 3, “Ensure healthy lives and promote well-being for all at all ages.” Investee companies are also expected to uphold solid environmental, social and governance (ESG) risk management while pursuing competitive returns. Our disciplined investment processes are critical to the way we evaluate companies through this lens.

Recent medical, pharmaceutical and technology-based breakthroughs offer new hope for treating and even curing diseases affecting millions of people. For example, knowledge gained from developing mRNA vaccines to battle COVID-19 is now used in cancer research. Treatments for genetically based diseases are under development with CRISPR technology. And these are just a few examples. These developments may lead to attractive investment opportunities and support economic sustainability globally. Illnesses and chronic diseases reduce worker productivity and negatively affect their livelihoods and consumer spending. This, in turn, hurts businesses and profitability. Thus, investing in health care is an opportunity to help society on many fronts.

Pursuing impact-oriented investment solutions is a natural extension of American Century Investments’ unique business model. We distribute over 40% of our dividends to the Stowers Institute for Medical Research, which supports lifesaving research, including the global effort to fight cancer. In this way, our company and clients become a real force for positive impact.

This report shows how we invest to achieve competitive financial returns while supporting U.N. SDG 3. We continue to be inspired by the health care sector’s ability to apply cutting-edge research and leverage digital technologies to create safe, effective and commercially viable health care solutions. We continue to seek innovative companies that can have a positive impact on society and highlight several of them in this report. Health care is one of our firmwide sustainability themes, and we believe investing in these companies offers the potential to deliver compelling returns while promoting positive social change.

Thank you for partnering with us in this important undertaking.

^{*Developed by a global team of industry and government leaders and adopted by all 193 U.N. member states, the SDGs include 17 goals and 169 attendant targets aimed at solving some of the world’s most pressing problems by 2030.}