American Century Investments Launches Strategy Targeting Value Companies Benefiting Improving Sustainability Profiles
Asset manager American Century Investments announced the launch of American Century Global Sustainable Value Equity strategy, a new fund aimed at generating strong risk-adjusted returns by investing in undervalued companies that are expected to benefit from improving sustainability characteristics.
Sarah Bratton Hughes, Head of Sustainable Investing at American Century Investments, said:
“Instead of focusing on companies that are already known as sustainability leaders, we are seeking diamonds in the rough – companies that are committed to improving the sustainability of their business.”
According to the firm, the new strategy will combine a best-in-progress approach and value focus, aiming to deliver attractive financial returns while contributing to positive sustainability outcomes across every sector of the economy.
The strategy will hold between 45 – 75 securities. Rationale for inclusion in the portfolio will include companies committed to actively enhancing the sustainability profile of their own or their customers’ businesses, companies diligently addressing issues that are temporarily damaging their sustainability profiles, companies that are unrecognized sustainability leaders, and whose products or services are indispensable to a sustainable economy.
American Century Global Sustainable Value Equity will be managed by Global Value Equity Chief Investment Officer Kevin Toney, Senior Portfolio Manager Michael Liss and Portfolio Manager David Byrns.
“The team will leverage our proprietary Improvement Pathway (IP) framework to identify companies that recognize the importance and value of transitioning their business operations to support a more sustainable economy. This is an opportunity for our clients to invest in a best-in-progress sustainable strategy that will strive for outperformance while delivering downside risk management and lower volatility.”