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American Century Investments launches first two ETFs

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American Century Investments has launched the American Century STOXX US Quality Value (VALQ) and the American Century Diversified Corporate Bond (KORP) exchange traded funds (ETFs), the first two ETFs to be offered by the global asset management firm.

Listed on the NYSE ARCA, the new funds leverage American Century’s 60 years of expertise developing client-centric investment solutions.
 
“Our goal with the launch of American Century ETFs is to provide innovative strategies that strive to deliver better outcomes for investors,” says Edward Rosenberg, senior vice president and head of ETFs for American Century. “We are excited to be launching our first two ETFs, which we see as ‘core’ investments that can serve as a central, foundational component of a long-term portfolio.”
 
Senior Vice President Peruvemba Satish, a portfolio manager on one of the new ETFs and director of global analytics for American Century, says the firm leveraged its cross-discipline investment capabilities and analytical skills to create the new funds.
 
“Informed by decades of experience, our strategies apply our unique insights to solve common investment problems and help investors achieve their goals,” says Satish.
 
American Century’s global analytics team played an integral role in the design and architecture of the two new funds, according to Satish. In partnership with the firm’s investment teams, the global analytics group spearheads empirical research in the areas of global macro, alpha generation and product engineering. Created in 2014, the global analytics team identifies market trends, opportunities and risks. It also helps design new investment strategies and solutions consistent with clients’ needs.
 
American Century STOXX US Quality Value ETF is an index-based value fund designed for investors pursuing capital appreciation. It seeks to deliver a more attractive risk/reward profile than the market capitalisation-weighted value investing typical of traditional index funds. The fund utilises American Century’s Intelligent Beta2 methodology, which strives to dampen the cyclicality of value investing in pursuit of strong risk-adjusted returns throughout the market cycle.
 
The portfolio management team’s analysis begins with the broad universe of US large-cap stocks based on the STOXX 900 Index. The team applies measures such as profitability, earnings quality, management quality and earnings revisions to identify high-quality companies at attractive valuations. It complements them with sustainable dividend-payers to help mitigate risk when value investing falls out of favour.
 
The fund is co-managed by Satish and Rene Casis. Satish joined American Century in 2014 to establish and lead the firm’s global analytics team. Casis joined American Century in early 2018 after serving in ETF portfolio management roles with BlackRock, Barclays Global Investors (BGI) and 55 Institutional.  
 
American Century Diversified Corporate Bond ETF is an actively-managed corporate bond fund designed for investors seeking current income. The fund emphasises investment-grade debt while dynamically allocating a portion of the portfolio to high yield in a single, systematically managed portfolio. By integrating fundamental and quantitative expertise, the portfolio management team strives for enhanced return potential versus traditional capitalisation-weighted passive portfolios.
 
The fund is co-managed by Kevin Akioka, Jeffrey Houston, Gavin Fleischman and Le Tran. Vice President and Senior Portfolio Manager Akioka joined American Century in 2010 and leads the fixed-income group’s corporate credit team. Vice President and Senior Portfolio Manager Houston has been with the company since 1990. Vice Presidents and Portfolio Managers Tran and Fleischman joined the firm’s fixed income team in 2004 and 2008, respectively.

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