Strategy Inception
2019
Strategy AUM (USD)
$83 M
As of 10/31/2024
Investing with a well-defined, bottom-up growth philosophy, the team looks for stocks at inflection points where earnings growth and market expectations are rising. We believe that investing in stocks exhibiting accelerating, sustainable growth, driven by inflection in business fundamentals, can result in stock price outperformance.
Seeking Accelerating, Sustainable Growth
We believe the direction of revenues and earnings growth is a more powerful predictor of stock price performance than the absolute level of growth as depicted in the image to the right.
Capitalizing on Market Inefficiencies
We believe the market is slow to recognize positive inflection points and is inefficient in extrapolating current operating trends into future earnings around these inflection points.
We Focus on Four Factors of Stock Selection
Our deep, diverse and dedicated investment team applies a disciplined framework we call ISGV. It seeks to identify investment opportunities through a rigorous, portfolio construction process to help manage risk and aim to achieve consistent returns over time.
Inflection
Is there a change in fundamentals?
What is driving the change?
Is it early in company's growth cycle?
Sustainability
Is the inflection in fundamentals sustainable?
What are the key risks to the durability of growth?
Earnings Gap
Does consensus fully reflect acceleration in fundamentals?
Are out-year consensus estimates beatable?
Valuation/Risk-Reward
Is valuation reasonable given the growth opportunity?
What is downside risk?
We Seek to Achieve Repeatability within our Process
Through a continuous, multi-step process, we monitor investment universe opportunities and risks and put equal emphasis on buy and sell decisions.
Idea Generation
280 - 320 Companies
Identify companies exhibiting accelerating growth and improving fundamentals and contribute to the SDG goals
Fundamental Analysis
150 - 200 Companies
Confirm acceleration is genuine and sustainable
Validate company's SDG exposure
Portfolio Construction
Focus portfolio on best ideas
Monitor risk controls and guidelines, including SDG alignment and progress
Portfolio
50 - 70 holdings
Portfolio Managers
Firm Start
2006
Industry Start
1984
Firm Start
2011
Industry Start
1995
| Average Industry Experience | 32 Years |
| Assets Under Management | $83 M USD As of 10/31/2024 |
| Location | New York, NY |
Cross-Discipline Support
Client Portfolio Managers
Investment Analysts
Global Equity Trading
Sustainable Research Team
Global Analytics
Takeaways
An emerging markets growth strategy seeking positive financial and social impact.
Employing a proprietary process and ESG integration that values accelerating and sustainable growth factors.
Alpha generation and risk management driven primarily by stock selection, not EM market factors.
Sources: MSCI Inc., FactSet
Source: MSCI. Morgan Stanley Capital International (MSCI) makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI.
Many of American Century's investment strategies incorporate the consideration of environmental, social, and/or governance (ESG) factors into their investment processes in addition to traditional financial analysis. However, when doing so, the portfolio managers may not consider ESG factors with respect to every investment decision and, even when such factors are considered, they may conclude that other attributes of an investment outweigh ESG considerations when making decisions for the portfolio. The consideration of ESG factors may limit the investment opportunities available to a portfolio, and the portfolio may perform differently than those that do not incorporate ESG considerations. ESG data used by the portfolio managers often lacks standardization, consistency, and transparency, and for certain companies such data may not be available, complete, or accurate.
ESG Definitions:
ESG Integrated: An investment strategy that integrates ESG factors aims to make investment decisions through the analysis of ESG factors alongside other financial variables in an effort to deliver superior, long-term, risk-adjusted returns. 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 factors.
ESG Focused: An investment strategy that focuses on ESG factors seeks to invest, under normal market conditions, in securities that meet certain ESG criteria or standards in an effort to promote sustainable characteristics, in addition to seeking superior, long-term, risk-adjusted returns. This investment focus may limit the investment opportunities available to a portfolio. Therefore, the portfolio may underperform or perform differently than other portfolios that do not have an ESG investment focus. ESG-focused investment strategies include but are not limited to impact, best-in-class, positive screening, exclusionary, and thematic approaches.
Sustainable Development Goals (SDGs) are a collection of 17 global goals set by the United Nations General Assembly. They were developed by a global team of industry and government leaders and adopted by all 193 member states. The SDGs include 17 goals and 169 attendant targets aimed at solving some of the world’s most pressing problems by 2030. The goals include eradicating poverty, providing environmental resources and achieving gender and income equality.
This is marketing material. This information is intended to be general in nature and is not personal financial product advice. Any advice contained here is general advice only and has been prepared without considering the investment objectives, financial situation or particular needs of any particular person. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your investment objectives, financial situation and needs. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. American Century nor any of their related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accept any liability to any person who relies on it.