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The ownership structure of American Century Investments® is unique in the asset management industry. With over 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 and other gene-based diseases.
As a matter of principle, risk management is at the core of our investment process. We continually take into account the materiality of all potential risks to our investments, including those stemming from ESG-related issues, with the objective of achieving superior, long-term, risk-adjusted returns for our clients.
With responsible investing firmly rooted in our culture, American Century Investments' views on ESG (Environment, Social, and Governance) factors is integral to our corporate citizenship and business model. Accordingly, American Century is a signatory of the Principles for Responsible Investment (PRI) and supports its missions to promote the incorporation of ESG factors into our investment process.
Oversight and accountability for American Century Investments' ESG-investing activities primarily fall under the responsibility of the Office of the Chief Investment Officer (CIO). The execution of our ESG policy and management of our ESG-investing platform falls under the purview of our Head of ESG and Investment Stewardship.
American Century also formed an ESG and Investment Stewardship structure to manage the day-to-day operations of our ESG platform. The structure includes representation from internal stakeholders from our ESG research, investment management, compliance, client coverage and technology functions to support our ESG efforts throughout the organization.
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.
While American Century Investments emphasizes ESG integration rather than exclusionary screening as we believe it leads to better diversification and maximizes the integration of both ESG quality and alpha-related inputs, we want to position our ESG program as solutions-driven.
We are capable of, and have been, providing ESG solutions—ranging from negative screening to best-in-class tilting, to thematic investing—in relation to all our investment disciplines, subject to client requests.
For more information about American Century Investments' approach to ESG integration, please contact:
Vice President, Head of ESG & Investment Stewardship
Updated October 2018