Stockholm (NordSIP) – The successful strategic partnership between American Century Investments and Nomura Asset Management continues to bear fruit with the recent launch of a new UCITS, the fourth in a row of collaborative efforts between the two firms. The latest product, American Century U.S. Focused Innovation Equity UCITS, a sub-fund of Nomura Funds Ireland Plc., is now available to investors in Europe.
The new strategy will invest in a concentrated portfolio of 30-45 American innovation companies positioned for sustained high growth rates over time. “Given high valuations investing into U.S. growth companies needs a rigorous selection process based on longstanding experience,” comments Go Hiramatsu, CEO at Nomura Asset Management U.K.
An experienced investment team of portfolio managers from American Century Investments, Keith Lee, Michael Li, Prabha Ram and Henry He, is tasked to ensure that the new product fulfils its promise. ESG risks that may impact the investee companies’ growth are listed among the main aspects the managers will assess during their rigorous investment process. The fundamental research will highlight other essential features: the companies’ capability for high profitability and the opportunities for management to reinvest capital to create further scale and extend their competitive advantage.
“Our investment approach looks beyond short-term market fluctuations and focuses instead on businesses with enduring franchises and strong balance sheets, that we think will be able to generate attractive cash flow growth over a long-time horizon,” comments Prabha Ram, Vice President at American Century and one of the new fund’s portfolio managers. “Our positioning is ultimately determined by an assessment of a company’s long-term business conditions and management’s abilities to execute on those opportunities,” he adds.