In our Investment Viewpoints series, our investment management teams provide in-depth, timely analysis on economic and market activity, discuss investment strategies and share their perspective on current topics of interest for financial professionals and investors. These white papers, bulletins and newsletter articles, developed specifically for financial professionals, provide the guidance and relevant information you need to make decisions and find solutions for your business and for your clients.
Dynamic Risk Management: Balancing Target-Date Risks for Changing Market Environments
Economies cycle. Policies shift. Markets ebb and flow. Can we improve our target-date portfolios by being more responsive to market conditions? Our objective has always been to increase the likelihood of retirement success for the broadest number of participants, and we systematically evaluate our asset allocation, sub-asset classes, and manager selection. Consistent with this method, we are incorporating a dynamic approach to risk management that follows the market environment.
The Importance of Alpha Diversification: Increasing “Hit Ratio” in Multi-Asset/Multi-Manager Portfolios
In this paper, we explain the benefits of alpha diversification, with practical insights on how to choose an optimal mix of underlying fund managers for multi-asset or multi-manager portfolio. We also investigate the portfolio “hit ratio,” which measures the percentage of periods a portfolio has outperformed its investment benchmark.
Investing for Sustainable Income: Diversification Matters
Investors generally seek income from familiar sources, such as bonds and dividend-paying stocks. But accommodative monetary policies and low interest rates over the past decade have created challenges for those types of assets. We believe investing for income in today’s low interest rate environment requires a broadly diversified strategy with a goal of providing sustainable income.
Consider Taking an Active Approach in Emerging Markets
When investing in emerging markets, as in most asset classes, investors can choose between actively managed and passive portfolios. Investors who subscribe to the efficient markets theory—the belief that all available information has been accurately priced into securities in a given market—might not see the potential advantages of using actively managed investments in the emerging markets portion of their portfolio. Vice President and Client Portfolio Manager, Nathan Chaudoin, discusses several reasons why.
Active and Passive: Complementary, Not Competing, Strategies
Active or passive investment management? It’s no longer either/or. Rather than argue for one side or the other, we offer a more balanced assessment of these competing approaches. Active and passive strategies are in fact complementary tools investors can deploy to achieve their desired investment outcomes.
Impact Investing: Individual Investors Seeking New Opportunities
The growing interest in impact investing in its various forms is generating discussions and deliberations among many investors and investment consultants. In a study by Greenwich Associates, commissioned by American Century Investments®, these professionals share their perspectives and expectations around the role of impact investing.
Beyond Labels: Advancing Your Approach to Target-Date Evaluation and Selection
Despite progress in recent years in understanding and evaluating target-date strategies, we find ourselves at a new plateau in target-date communication—one that is rife with labels and shorthand in the form of digestible and overly-simplistic dichotomies. We believe that much of the jargon currently used to evaluate and analyze target-date funds (TDFs) is limiting and, in some cases, downright misleading.
Earnings Acceleration: Tracking Long-Term Secular Trends to Capture Growth in Emerging Markets Companies
We explore how earnings acceleration, in concert with analyzing and monitoring long-term secular trends, can be applied to investing in emerging markets.
A Framework for Understanding Inflation Conditions
Inflation is a central concern for many investors. We apply a four-factor framework to current inflation conditions to provide our clients with a clear view of the inflation picture.
Why Earnings Acceleration Works
We examine behavioral biases and the enduring market inefficiencies that result from them. We then show how correctly forecasting inflection points and the extent of sustainable improvement can help to generate superior investment returns.
The Evolution of Quantitative Investment Strategies
Five years after the financial crisis, investors are taking another look at quantitative strategies. In this paper, we discuss how the systematic application of time-tested principles has resulted in attractive risk-adjusted returns.
Six Reasons to Emphasize Active Investment Management
The demise of active management appears to be greatly exaggerated, especially when identifying managers with a unique process, attractive risk profile and consistent alpha generation potential.
Diversification does not assure a profit nor does it protect against loss of principal.
The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.