American Century’s AC Alternatives has launched the AC Alternatives Emerging Opportunities Total Return Fund, which aims to help investors wanting to diversify their fixed income portfolios through securities that are economically tied to emerging market countries.
Managed by a team of emerging markets debt specialists, the new fund is available in investor, institutional, A, R and R6 share classes.
The product intends to be a "best ideas" emerging markets debt (EMD) portfolio, according to American Century's head of emerging markets debt Marge Karner (pictured).
"Our new total return fund is a benchmark-agnostic portfolio that tactically allocates among all EMD asset classes, including sovereigns and corporates, hard and local currency debt, currencies and derivatives," says Karner. "We strive to capture most of the upside in the EMD universe with only 50 to 75 per cent of the volatility over the full business cycle. Our goal is to provide an alternative to clients seeking exposure to the full range of EMD asset classes with a focus on seeking strong risk-adjusted returns and on minimising drawdowns."
The team uses a combination of top-down and bottom-up analysis to develop their views on emerging markets and an integrated fundamental and quantitative investment process to seek to deliver clients consistent and repeatable performance. The fund's investment process focuses on delivering returns through enhanced attention to risk and stress testing of portfolios. Consequently, proprietary risk management and portfolio engineering tools are integrated into the daily portfolio management process.
According to co-chief investment officer David MacEwen, American Century is committed to offering a solution-based product that aims to help clients navigate the complex EMD universe, while striving to actively manage downside risk.
"We believe emerging markets may account for roughly two thirds of global growth over the next few years, fuelled by supportive demographics, the growing middle class and increasing incomes," MacEwen says. "Over the past few years, we've built an experienced team of EMD experts to manage our growing capabilities and to respond to our clients' evolving preferences."
The new fund is managed by cice president and senior portfolio manager Marge Karner, vice president and portfolio manager Abdelak Adjriou, senior vice president and senior portfolio manager John Lovito and vice president and senior portfolio manager Kevin Akioka.
