Strategy Inception
2018
Strategy AUM (USD)
$853 M
As of 10/31/2024
We believe that innovative health care companies with good business characteristics can lead to stock outperformance conditions. These companies sit in an industry with high-demand driven by demographics and rising living standards combined with significant scientific advancements which provides an opportunity to create return and social impact potential.
Seeking Good Businesses and Stocks
Good stocks start with good businesses. Characteristics of a good business includes profitability, scalability, growth and a competitive advantage.
Good Business Characteristics
Equally important
Equally synergistic
Self-perpetuating cycle
Stock Outperformance Conditions
Acceleration in fundamental business trends
Attractive valuations
Positive relative strength
Impact Investing:
Aligning to the SDG #3
The strategy invests in innovative health care companies that align with the United Nations Sustainable Development Goal (SDG-3). Through investment in these companies, we believe we can generate attractive returns and benefit society.
The team employs a fundamentally-driven, risk-managed investment process that incorporates a proprietary, multi-factor model and deep analysis to create unique insights that drive portfolio construction.
3-Step Investment Process
Our fundamentally driven, risk-aware investment process screens a universe of nearly 700 stocks down to the most compelling 30-50 health care companies.
Steps
Proprietary Multi-Factor Model Ranking
Proprietary multi-factor model ranks stocks based on:
Fundamental acceleration, relative strength, earnings quality and valuation
Deep Fundamental Analysis & ESG Integration
Conduct deep fundamental research to identify and confirm:
Quality of the company and financials, ESG risks, drivers of acceleration and sustainability of growth and profitability
Portfolio Construction
Construct portfolio emphasizing stock selection subject to:
Liquidity constraints, risk-management guidelines and a high growth performance contour
Results
30 - 50 high-conviction holdings
Impact and ESG Assessment
All companies go through rigorous fundamental analysis and align with at least one of our four impact themes. In-depth analysis of material ESG factors and risks is also completed on each holding as part of this step of the investment process.
All companies will go through rigorous fundamental analysis.
All companies in the portfolio will align with at least one of the impact themes.
All companies in the portfolio undergo in-depth ESG risk analysis by our in-house ESG team.
4 Impact Themes
Innovative treatments for diseases
Enhancing productivity of equipment, services and software
Access to medicines and services
New solutions for lowering health care costs
Collective decision making and a differentiated team drives continuity
Portfolio Managers
Firm Start
2011
Industry Start
2001
Firm Start
2006
Industry Start
1999
| Assets Under Management | $853 M USD As of 10/31/2024 |
| Location | Kansas City, MO |
Cross-Discipline Support
Client Portfolio Managers
Investment Analysts
Global Equity Trading
Sustainable Research Team
Global Analytics
Takeaways
A differentiated growth portfolio investing in companies in the health care industry.
Impact investing process focuses on investments that align to the UN’s SDG Goal 3: Good Health and Well Being
A uniquely-qualified team selects investments that seek to provide financial returns and a positive impact on society.
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 sustainability factors, using environmental, social, and/or governance (ESG) data, into their investment processes in addition to traditional financial analysis. However, when doing so, the portfolio managers may not consider sustainability-related factors with respect to every investment decision and, even when such factors are considered, they may conclude that other attributes of an investment outweigh sustainability factors when making decisions for the portfolio. The incorporation of sustainability factors may limit the investment opportunities available to a portfolio, and the portfolio may or may not outperform those investment strategies that do not incorporate sustainability factors. 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.
Sustainable Investing Definitions:
Integrated: An investment strategy that integrates sustainability-related factors aims to make investment decisions through the analysis of sustainability factors alongside other financial variables in an effort to make more informed investment decisions. A portfolio that incorporates sustainability factors may or may not outperform those investment strategies that do not incorporate sustainability factors. Portfolio managers have ultimate discretion in how sustainability factors may impact a portfolio’s holdings, and depending on their analysis, investment decisions may not be affected by sustainability factors.
Sustainability Focused: A sustainability-focused investment strategy seeks to invest, under normal market conditions, in securities that meet certain sustainability-related criteria or standards in an effort to promote sustainable characteristics, in addition to seeking superior, long-term, risk-adjusted returns. Alternatively, or in addition to traditional financial analysis, the investment strategy may filter its investment universe by excluding certain securities, industry, or sectors based on sustainability factors and/or business activities that do not meet specific values or norms. A sustainability 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 a sustainability investment focus. Sustainability-focused investment strategies include but are not limited to exclusionary, positive screening, best-in-class, improvers, thematic, and impact 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.