Advanced Medical Impact UCITS Launches
Experienced investment team with extensive industry credentials (former pharmaceutical research scientist)
Additional positive social impact through the firm's unique ownership structure, American Century has directed 40 percent of profits in the form of dividends to support medical research
The team's health care strategy has currently attracted more than $1.6 billion assets under management since its inception in 2018
American Century Investments and Nomura Asset Management continue to offer investment solutions that integrate environmental, social and governance (ESG) factors. The American Century Advanced Medical Impact UCITS, a sub-fund of Nomura Funds Ireland Plc, is now available to investors in Europe.1
Created in collaboration with Nomura Asset Management, the new Dublin-based UCITS will seek actively invest in 30-50 innovative global health care companies positioned for sustained above-average growth. Further, as the companies attain their fundamental objectives, they also have opportunities to create meaningful social impact through addressing large unmet medical needs.
The portfolio is constructed to align with the United Nations' Sustainable Development Goal 3 (SDG-3) to "ensure healthy lives and promote well-being for all at all ages."
The strategy will be managed by an experienced investment team led by American Century Investments' Portfolio Manager Michael Li, and Co-Portfolio Manager Henry He.
Michael Li, Ph.D. Vice President and Portfolio Manager for American Century, said: "The global pandemic has underscored the need for quality health care. There are approximately 600 million people worldwide age 65 years and over, so there's a rising demand for health care services, as well as increasing wealth levels in developing countries such as China and India in particular, to access quality care. This will place significant stress on health care systems, so we need to invest in infrastructure and capacity. However, innovations leading to new treatments and improvement in access, cost, and productivity will be a primary means to address the issue. The new UCITS invests in important health care innovations that we believe will have a positive impact on society."
Peter Ball, Managing Director and Head of EMEA Distribution at Nomura Asset Management, commented: "The Advanced Medical Impact Fund will be our latest UCITs collaboration with our strategic partner American Century. Although the uncertain outlook and spiking volatility has challenged financial markets, the current environment strengthens the case for active management through the managers' ability to identify potential winners in the coronavirus crisis and mitigate downside risk."
Li and co-portfolio manager He use a proprietary multi-factor model and other sources such as medical conferences to identify investment candidates from a global health care universe. Next, the team conducts deep fundamental research to identify and confirm the drivers of improving growth, its sustainability, and future profitability trends while evaluating ESG risks. Proprietary financial models of companies are developed to determine the intrinsic value and provide unique insights. The team then constructs the concentrated portfolio with between 30 and 50 securities. Each stock in the portfolio must be tied to at least one of the following impact themes which correspond to the United Nations' SDG-3 goal:
New or innovative treatments for diseases, as well as mental and neurological disorders
Access to medicine and health care services in developed and emerging markets
New solutions that lead to lowering the cost of health care
More productive and efficient equipment, services and software used for research, diagnostic testing, and development of new therapies
American Century's commitment to impact investing dates back to 1994, when company founder, James E. Stowers Jr., and his wife, Virginia, dedicated the vast majority of their net worth to create the Stowers Institute for Medical Research, a non-profit biomedical research institution focused on researching gene-based diseases, including cancer. In the ensuing years, Mr. and Mrs. Stowers transferred their equity stake in American Century to an endowment supporting the Stowers Institute, creating an ownership model that results in more than 40 percent of the company's annual dividends funding medical research. Since 2000, dividend distributions to the Institute total more than $1.7 billion.
Nomura Asset Management
Nomura Asset Management is a leading global investment manager. Headquartered in Tokyo, Nomura has additional investment offices throughout the world including London, Singapore, Malaysia, Hong Kong, Shanghai, Taipei, Frankfurt and New York. With a global workforce of over 1,300 employees it has been operating in Europe for the past 30 years. Today Nomura Asset Management provides its clients with a wide range of innovative investment strategies including global, regional and single country equities, high yield bonds, alternative investments and global fixed income strategies.
The fund is a sub-fund of Nomura Funds Ireland plc, which is authorised by the Central Bank of Ireland as an open-ended umbrella investment company with variable capital and segregated liability between its sub-funds, established as an undertaking for Collective Investment in Transferable Securities under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011. This document is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. The shares in the fund have not been and will not be offered for sale in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or to United States Persons. This document is not intended in any way to indicate or guarantee future investment results as the value of investments may go down as well as up. Values may also be affected by exchange rate movements and investors may not get back the full amount originally invested. Before purchasing any investment fund or product, you should read the related prospectus and fund documentation, including full details of all the risks associated with it, to form your own assessment and judgement on whether this investment is suitable in light of your financial knowledge and experience, investment objectives and financial or tax situation and whether to obtain specific advice from an investment professional. The prospectus and Key Investor Information Document are available in English from the Nomura Asset Management U.K. Ltd website at https://www.nomura-asset.co.uk/. Nomura Asset Management U.K. Ltd. is authorised and regulated by the Financial Conduct Authority. Portfolio data source: Nomura Asset Management U.K. Ltd.
About American Century Investments
Who We Are
American Century Investments is a leading global asset manager focused on delivering investment results and building long-term client relationships while supporting breakthrough medical research.
Founded in 1958, American Century Investments' 1,400 employees serve financial professionals, institutions, corporations and individual investors from offices in Kansas City, Missouri; New York; Los Angeles; Santa Clara, California; Portland, Oregon; London; Frankfurt, Germany; Hong Kong; and Sydney.
Jonathan S. Thomas is president and chief executive officer, and Victor Zhang serves as chief investment officer.
Delivering investment results to clients enables American Century Investments to distribute over 40% of its dividends to the Stowers Institute for Medical Research, a 500-person, nonprofit basic biomedical research organization. The Institute owns more than 40% of American Century Investments and has received dividend payments of more than $2 billion since 2000.
The sub-fund is registered for sale in: Austria, Luxembourg, Belgium, Netherlands, Denmark, Norway, Finland, Singapore, France, Spain, Germany, Sweden, Iceland, Ireland, United Kingdom and Italy.
This communication has been prepared for information purposes only and does not constitute an offer to buy or sell any security and does not constitute an investment recommendation or investment, accounting, tax or legal advice.
American Century Investment Management (UK) Limited is authorised and regulated by the Financial Conduct Authority.
American Century Investment Management (UK) Limited is registered in England and Wales. Registered number: 06520426. Registered office: 12 Henrietta Street, 4th Floor, London, WC2E 8LH.
International investing involves special risks, such as political instability and currency fluctuations.
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