Emerging Markets Sustainable Impact
At its essence, sustainability means ensuring prosperity and environmental protection without compromising the ability of future generations to meet their needs.
Former Secretary-General of the United Nations
Developing economies have been a significant driver of global growth in recent years. At the same time, there is a growing desire to align values and interests with investing intended to make a societal impact.
The current combination of long-term growth trends and improving corporate practices provides investment opportunities in emerging markets that can also make an impact.
The Emerging Markets Sustainable Impact strategy seeks to provide attractive risk-adjusted returns by investing in accelerating growth companies that also seek to make a positive impact by contributing to the United Nation’s Sustainable Development Goals (SDGs).
will open by achieving the Global Goals by 2030 — well over 50% will be in developing countries.
will be created by achieving the Global Goals by 2030 — almost 90% of them in developing countries.
Source: Business & Sustainable Development Commission, Better Business, Better World, January 2017.
Pursuing the Global Goals could raise trillions in new market opportunities in ways that extend prosperity to all.
BUSINESS & SUSTAINABLE DEVELOPMENT COMMISSION
Better Business, Better World
With every investment decision, you make a choice for a better world. At American Century, impact goes beyond our investment strategies.
Our founder established and endowed the Stowers Institute for Medical Research, a world-class biomedical organization dedicated to uncovering the causes, treatments and prevention of genetically based diseases, like cancer. The Institute owns a controlling interest in American Century, and through this unique ownership structure, dividend payments ensure the ongoing support of important work that can improve human health and save lives.
have been distributed to our owner, the Stowers Institute for Medical Research, since 2000.
Generate returns while achieving positive social and environmental impact by investing in companies that contribute to one or more of the United Nations Sustainable Development Goals (SDGs).
Through unique ownership structure, American Century directs 40% of profits in the form of dividends to support basic medical research that could lead to lifesaving cures.
At A Glance
|Inception Date||1 May 2019|
|Capitalization Size||Large Cap|
|Benchmark||MSCI Emerging Markets|
|Typical Holdings||50 to 70|
|Excess Return Market
||2% to 3%|
|Expected Tracking Error||2% to 6%|
Corporations and investors are looking more for products that accomplish: positive alpha and investment in companies that will help the world tomorrow.
Senior Vice President, Senior Portfolio Manager
Seeking Financial Returns and Societal Impact
The portfolio seeks to participate in the United Nations Sustainable Development Goals (SDGs) efforts by investing in firms we believe can generate positive impact and returns.
Guided by a proprietary process which expands the investable universe, we look for companies with accelerating and sustainable growth characteristics while incorporating ESG integration.
Our goal is to ensure investments exhibit both a demonstrable financial business case and a quantifiable impact on society and/or the environment.
FIRM START | 2006
INDUSTRY START | 1984
FIRM START | 2011
INDUSTRY START | 1995
The Blueprint to Achieve a Better and More Sustainable Future for All
The U.N. Sustainable Development Goals seek to solve the world’s most pressing issues—many of which directly impact the emerging markets.1
By investing to advance the SDGs, asset owners and asset managers play a critical role in promoting prosperity, meeting social needs and protecting the environment.
Analysts use a variety of tools and may engage with companies directly to validate SDG exposure.
Our integrated ESG team provides a proprietary ESG risk review to confirm that SDG exposure is aligned with corporate behavior (i.e., avoiding “SDG impact washing”).
Analysts’ proprietary research culminates in an Impact Thesis that explains current or projected SDG alignment in combination with the stock’s fundamental growth profile.
1 Developed by a global team of industry and government leaders and adopted by all 193 U.N. member states, the SDGs include 17 goals and 169 attendant targets aimed at solving some of the world’s most pressing problems by 2030. The goals include eradicating poverty, protecting environmental resources, and achieving gender and income equality.
Identify companies exhibiting accelerating growth and improving fundamentals and contribute to the SDG goals
Confirm acceleration is genuine and sustainable
Validate company’s SDG exposure
Focus portfolio on best ideas
Monitor risk controls and guidelines, including SDG alignment and progress
Construct a portfolio of 50-70 securities
Advanced telecom with accessible prices
Financial services in a sustainable manner
Financial services including banking and insurance
High-quality education at scale
Treated water and sewage services
6 South Africa
Retail banking with low costs and flexibility
Educational services and increased employment rates
9 South Korea
R&D of high-quality consumer goods
Financial services for economically weak areas
Credit services and personal loans
Leasing and financing for small-mid-sized enterprises
Home, persona care and food production
Companies for illustrative purposes only. May or may not be current holdings.
MARKETING MATERIAL / FOR PROFESSIONAL CLIENTS ONLY / NOT FOR PUBLIC USE
When portfolio managers incorporate Environmental, Social and Governance (ESG) factors into an investment strategy, they consider those issues in conjunction with traditional financial analysis. When selecting investments, portfolio managers incorporate ESG factors into the portfolio's existing asset class, time horizon, and objectives. Therefore, ESG factors may limit the investment opportunities available, and the portfolio may perform differently than those that do not incorporate ESG factors. Portfolio managers have ultimate discretion in how ESG issues may impact a portfolio's holdings, and depending on their analysis, investment decisions may not be affected by ESG factors.
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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.
American Century Investment Management (Asia Pacific), Limited currently holds Type 1 and Type 4 registrations from the Securities and Futures Commission (“SFC”). American Century Investment Management, Inc. is not registered with the SFC.