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.
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||70 to 75|
|Excess Return Market
||2% to 3%|
|Expected Tracking Error||2% to 6%|
Senior Vice President, Senior Portfolio Manager
Distinct Growth Philosophy
Our philosophy of growth is centered on the belief that improving business fundamentals of a company lead to acceleration in earnings and revenues. We believe this acceleration in growth can yield both stock price performance alongside positive societal and environmental value.
Alpha with Impact
Bottom-up, fundamental research drives our investment process. Alpha is driven by security selection—not from macro, country or sector bets. ESG risk considerations are fully integrated into the research process.
Collaborative, Integrated Team
The strategy is managed by a dedicated team within a centralized structure. This ensures speed of decision making, alignment of effort and accountability to the client.
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 70-75 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
A strategy or emphasis on environmental, social and governance factors ("ESG") may limit the investment opportunities available to a portfolio. Therefore, the portfolio may underperform or perform differently than other portfolios that do not have an ESG investment focus. A portfolio's ESG investment focus may also result in the portfolio investing in securities or industry sectors that perform differently or maintain a different risk profile than the market generally or compared to underlying holdings that are not screened for ESG standards.
No offer of any security is made hereby. This material is provided for informational purposes only and does not constitute a recommendation of any investment strategy or product described herein. This material is directed to professional/institutional clients only and should not be relied upon by retail investors or the public. The content of this document has not been reviewed by any regulatory authority.
This document does not constitute an offer or solicitation to invest. American Century Investment Management (UK) Limited may not be licensed in all jurisdictions, and unless otherwise indicated, no regulator or government authority has reviewed this document or the merits of the investment referenced herein. This document is provided on a privileged and confidential basis and, where required by local law, at the request of the recipient. This document (and the information contained herein) is for informational purposes only and is not to be reproduced, distributed or transmitted without the written consent of American Century Investment Management (UK) Limited. If you receive a copy of this document, you may not treat this as constituting a public offering and you should note that there may be restrictions or limitations to whom these materials may be made available. You should conduct appropriate checks to ensure that these materials are made available only to eligible recipients, pursuant to private placement exemptions, or are otherwise used in accordance with applicable law. If you wish to invest, it is your duty to inform yourself of, and to observe, all applicable laws and regulations of any relevant jurisdiction. In particular, you should inform yourself as to the legal requirements of so applying, and any applicable exchange control regulations and taxes in the countries of your respective citizenship, residence or domicile as well as any other requisite governmental or other consents or formalities which you might encounter which might be relevant to your purchase, holding or disposal of the investment. Past performance is no indication as to future performance and the value of any investment may fall as well as rise. Any investment is done at the investor’s own risk.
American Century Investment Management (UK) Limited is authorised and regulated by the Financial Conduct Authority.
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.