American Century Investments
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 factors is integral to our corporate citizenship and business model. We focus on material ESG issues which can affect the performance of individual securities to varying degrees over time. We seek to integrate the analysis of potential risks and opportunities associated with ESG issues within our fundamental research process, and we strive to mitigate related downside risks or capture upside potential as necessary, without compromising our fiduciary duty to act in the best interest of our clients.
In addition to conducting our business with the highest ethical standards and complying with all applicable laws and regulations, our ESG approach is regularly reviewed against industry investment stewardship and governance standards and ESG methodologies to ensure alignment with our processes.
Each strategy within American Century’s Global and Non-U.S. Growth Equity discipline is managed according to an integrated approach to ESG investing. Strategies include: Global Growth, Non-U.S. Growth, Emerging Markets All Cap and Small Cap, Global Small Cap and Non-U.S. Small Cap.
In assessing the sustainability of earnings growth, we integrate the analysis of material risks and opportunities arising from ESG issues within our fundamental research process. We employ bottom-up analysis, and a combination of third-party ESG data and proprietary ESG assessment tools to evaluate whether ESG issues could move the needle on a company’s market valuation or warrant decrements to its fundamental profile.
Analysts are required to ensure that any ESG risks identified by our process are not financially material to our investment thesis. The investment team can also address with company management any ESG issues and controversies deemed material to an issuer’s long-term financial condition.
Links and documents
– ESG Continues to Evolve
– Additional resources can be found on American Century’s ESG Website