Facts & Figures
|Inception of sustainability strategy||2006|
|Total AUM (USD)||148 billion|
|AUM Responsible Strategies (USD)||128 billion |
|% ESG integration||N/A|
|% proxy voting||N/A|
|Responsible Investment team||5 (Additionally, the ESG team has trained 10 ESG Investment Champions across our investment disciplines to help drive consistency of ESG integration across investment strategies.)|
|Firm-wide ESG integration||✓||Yes - incorporation across majority of AUM|
|PRI Signatory||✓||since 2018|
|UN Global Compact|
|Funds in Hållbarhetsprofilen|
|All RI Strategies||Firmwide|
|International norm violations||✓|
|Fossil fuel (all)|
|Anti-personnel landmines & Cluster munitions||Several|
|Weapons of mass destruction (nuclear, biological & chemical)||Several|
American Century Investments® has focused on delivering superior, risk-adjusted performance and serving the best interests of clients worldwide for more than 60 years. Headquartered in Kansas City, Missouri, the firm also has offices in London, Hong Kong, Sydney, Frankfurt, New York, and California. As of 31 March 2020, the firm managed USD 148B in assets under management across a broad range of global investment solutions, including ESG capabilities. The decision to invest with American Century also enables clients to make a meaningful impact by funding research that could lead to cures for diseases such as Alzheimer’s, diabetes and cancer. Through its distinct ownership model, American Century directs more than 40% of dividends to its owner, the Stowers Institute for Medical Research, a world-class biomedical research organisation. Since 2000, the firm has distributed USD 1.6B in dividends to the Institute to fund medical research that can improve human health and quality of life.
Commitment to Sustainability
Responsible investing is firmly rooted in our culture, and American Century’s views on ESG factors are integral to our corporate citizenship and business model. We view ESG issues as an important input into fundamental analysis which can help minimise downside risk or maximise upside potential associated with ESG issues, otherwise not captured by traditional financial analysis, with the objective of achieving superior, long-term, risk-adjusted returns for clients. As such, we believe that ESG integration is aligned with our fiduciary duty to serve clients.
Our ESG philosophy observes four guiding principles:
- Our primary mission is to deliver superior, long-term, risk-adjusted returns for our clients.
- We focus on material ESG issues which can affect the performance of individual securities to varying degrees over time.
- We seek to integrate the analysis of potential risks and opportunities associated with ESG issues within our fundamental research process and we strive to mitigate related downside risks or capture upside potential as necessary, without compromising our fiduciary duty to act in the best interest of our clients.
- In addition to conducting our business with the highest ethical standards and complying with all applicable laws and regulations, our ESG approach is regularly reviewed against industry investment stewardship and governance standards, and ESG methodologies to ensure alignment with our processes.
As long-term active investors, we take our fiduciary responsibilities seriously. Over the years, our investment teams have developed different ways, e.g., in-person meetings, written communications, and proxy voting, to engage corporate management on ESG-related issues that can materially impact the long-term value of our investments. In recent years, and since the formation of our ESG and Investment Stewardship team (ESG team), we substantially advanced our capabilities and resources in the area of ESG engagement. Not only do our investment analysts and portfolio managers continue to engage on important ESG issues and monitor corporate actions and results as part of their ongoing investment process, but investment teams also involve and partner the ESG team in complex engagement situations.
Our ESG and Investment Stewardship team (ESG team) is comprised of five analysts dedicated to ESG research. The ESG team integrates financially-material ESG factors into our investment process and conducts ESG research to augment the fundamentally driven research created by the firm’s investment teams. Additionally, the ESG team has trained 10 ESG Investment Champions across our investment disciplines to help drive consistency of ESG integration across investment strategies.
Offerings across SRI Spectrum
Whilst American Century emphasises ESG integration as we believe it leads to better diversification and a more robust opportunity set within the investable universe, we position our ESG programme as solutions driven. To that effect, we also offer bespoke ESG solutions for our clients. We are capable of, and have been, providing ESG solutions-ranging from negative screening to best-in-class tilting, to thematic, to impact investing-in relation to all our investment disciplines, subject to client requests.
Our ESG integration process extends to our proxy voting practices. We created an ESG Proxy team which is comprised of senior legal and compliance professionals and our head of ESG and Investment Stewardship. The ESG Proxy team reviews, on a weekly basis, ESG related proxy proposals affecting American Century Investment Management client holdings. The ESG Proxy team assesses the financial materiality of the ESG issues underpinning the proposals and makes appropriate voting recommendations to portfolio managers. The portfolio management teams then review the ESG team recommendations and provide feedback prior to the firm’s vote. Votes are cast on the ISS proxy voting system.