Strategy Inception
2004
Strategy AUM (USD)
$7.25 B
As of 11/30/2024
We believe that companies benefitting from identifiable themes with durable long-term growth opportunities and improving fundamentals will outperform due to persistently higher earnings power, positive earnings revisions, and rising valuations. The market is inefficient at identifying these businesses because of investor and institutional biases.
Three Core Investment Tenets
A thematic approach highlights areas of opportunity and supports our forecasts for duration of growth.
Durable franchises with strong management, leading products, or a superior business model tend to be higher-quality companies, defined as having high or improving returns on invested capital.
An inflection of business improvement can help indicate a secular shift in fundamentals.
A process combining top-down and bottom-up analysis focused on identifying companies with sustainable long-term growth.
A Combined Top-Down and Bottom-Up Investment Process
Our fundamentally driven, risk-aware investment process combining thematic and multi-factor approaches screens a universe of nearly 800 mid cap stocks down to the most compelling 70-90 companies.
Idea Generation
An experienced investment team with deep knowledge of companies and industries implements thematic analysis and a multi-factor investment model to prioritize stocks for analysis and implementation.
Thematic Analysis
• Industries impacted by secular change
• Meetings with company management
• Triangulation of information across sectors
Industry Experience
• Deep knowledge of companies and industries
• Meetings with company management
• Leverage American Century and outside experts
Multi-Factor Model
• Earnings Improvement
• Quality
• Valuation
• Relative Strength
Prioritize stocks for analysis based on:
Secular growth potential, change in fundamental direction, relative attractiveness to current holdings and portfolio construction needs
This product also incorporates sustainability considerations. Discover our proprietary sustainability research platform.
Portfolio Managers
Firm Start
2018
Industry Start
1999
Firm Start
2013
Industry Start
1998
| Assets Under Management | $7.25 B USD As of 11/30/2024 |
| Locations | Kansas City, MO - Santa Clara, CA |
Cross-Discipline Support
Client Portfolio Managers
Investment Analysts
Sustainable Research Team
Global Analytics
Takeaways
A portfolio focused on delivering consistent mid cap exposure seeking to invest in high-growth companies with improving fundamentals.
Our process combines top-down and bottom-up analysis to opportunistically identify mid-sized companies.
This style-pure portfolio seeks excess returns driven primarily by stock selection.
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.
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.
Sources: Frank Russell Co., FactSet
The Russell Midcap® Index is a trademark/service mark of the Frank Russell Company. Russell® is trademark of the Frank Russell Company.