Strategy Inception
2005
Strategy AUM (USD)
$392 M
As of 03/31/2025
Overview
Risk-Managed Growth Exposure
Aims to provide balanced exposure to growth stocks by investing in those featuring both quality and growth characteristics.
Systematic Approach
Systematic, risk-aware implementation designed to remove human biases and unrewarded risks from a strategy.
Applied by Investment Professionals
Human expertise and oversight to help avoid pitfalls and improve consistency of process.
| Inception Date | 11/01/2005 |
| Total Assets | $392 M USD As of 03/31/2025 |
| Benchmark | Russell 1000 Growth Index |
| Target Excess Return | 1.5% - 2.5% |
| Target Tracking Error | 1.0% - 5.0% |
| Target Number of Holdings | 100 - 200 |
| Cash Exposure | 3% Maximum |
| Expected Turnover | 100% - 200% Depending on volatility |
Available Vehicles
Separate Account Strategy, Mutual Fund
| Maximum Position Size | ± 4% Of benchmark weight |
| Regional Exposure | 10% Maximum non-U.S. exposure |
| Sector Exposure | ±10% Of benchmark weight |
Philosophy
We believe:
Evidence-based thinking implemented systematically can achieve consistent, long-term attractive results.
Systematized decision-making based on rigorously researched processes improves consistency and removes human biases.
Investment experts are ultimately responsible, and their review can mitigate unique, transient or exogenous risks that are difficult to control systematically.
Process
Our systematic, repeatable investment process combines rigorous quantitative modeling along with qualitative reviews by experienced portfolio managers:
Fundamental screening and security selection leverage a rigorous quantitative model that seeks to identify strong businesses in each sector.
Portfolio construction includes model implementation and an active review process that captures additional insights and balances return and risk.
All models employ a balanced risk-aware combination of the following fundamental drivers of long-term stocks’ returns to screen, select and size investments.
Favor Profitability
High and sustainable returns on capital
Competitive margins
Cash returns
Focus on Quality
Earnings sustainability
Financial stability
Balance sheet strength
Anchor to Valuation
Earnings, sales and free cash flow ratios
Historical and/or market peer relative ratios
Identify Business Growth
Sales, earnings and cash flow growth
Historical and expected growth measures
Incorporate Nonfinancial Information
Market-based sentiment measures
Analysts' expectations
Team
Ours is a highly collaborative team-based approach in which duties are regularly shared to reduce key-person risk and enhance decision-making. The team’s experienced professionals leverage their deep knowledge and strong professional backgrounds to perform two key functions:
Quantitative research seeks to continually enhance the investment process (e.g., models) that drives excess returns.
Portfolio management is responsible for implementing the quantitative models into the portfolio and managing risks appropriately.
Portfolio Managers
Firm Start
2023
Industry Start
2003
Firm Start
2005
Industry Start
2004
| Assets Under Management | $392 M USD As of 03/31/2025 |
| Location | New York, NY - Santa Clara, CA |
Cross-Discipline Support
Client Portfolio Manager
Global Analytics Team
Takeaways
Pursues companies featuring both quality and growth characteristics.
Uses a fundamentally driven process that seeks high-quality, growing businesses.
Seeks returns driven by stock selection.
Performance
Composite Performance in USD (%)
*Annualized
Data reflects past performance. Past performance does not guarantee future results. The value of investments may fluctuate. Data assumes reinvestment of dividends and capital gains.
Insights
Sources: Frank Russell Co., FactSet
The Russell 1000® Index is a trademark/service mark of the Frank Russell Company. Russell® is trademark of the Frank Russell Company.
Risk management does not imply no risk.
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.
