In this Impact Report, we will show how your investment capital supports crucial innovation and change leading to better health care outcomes around the world. Indeed, investing for positive impact continues to evolve and gain acceptance in the investment community as a way to align both financial and social investment objectives.
A central component of American Century Investments’ approach to investing is that investors do not need to choose between impact and returns. Our approach offers an opportunity to invest in companies that fuel change by contributing to the United Nations’ Sustainable Development Goals* (U.N. SDGs) and by demonstrating solid environmental, social and governance (ESG) risk management practices. We believe this can be achieved while also generating alpha through our distinct investment philosophy.
Providing investment solutions geared toward the SDGs is a natural extension of the impact our firm creates through its unique business model. With more than 40% of dividends distributed to the Stowers Institute for Medical Research, we enable our clients to directly support lifesaving research and contribute to the global fight against cancer. This is how we and our clients redefine prosperity and—together—become a powerful force for positive impact.
COVID-19 has altered the global economy, but it is also affecting investment theory. There is a growing consensus among many investors—especially among the consequential millennial generation poised for the “Great Wealth Transfer”—that so-called neoclassical economic theory must evolve past the sole focus of maximizing firm profits. As a result, investors are increasingly measuring company performance by more than just financial profit and loss. It is no longer about what makes a good stock but what makes a good company. Investors exposed to the health care theme in their portfolios have an opportunity to adapt to this shift in perspective and contribute to positive change.
We will demonstrate how we invest to achieve financial return while supporting U.N. SDG No. 3: Ensure healthy lives and promote well-being for all at all ages. We will identify several companies and relate how their important work is contributing to progress within four crucial health care impact themes. Consider, for example, the health care sector’s remarkable advancements developing COVID-19 treatments and vaccines in a matter of months rather than years. We think this provides a valuable proof point about the ability of innovative health care companies to make a positive impact on society. Ultimately, we believe an investment focus on such companies not only offers the potential for compelling returns, but also provides a direct, meaningful way to promote positive social change.
Thank you for partnering with us in this important undertaking.