American Century Investments

American Century Investments. It is a prominent global asset management firm headquartered in Kansas City, Missouri, known for its disciplined, research-driven investment approach. Founded in 1958, the company offers a wide array of investment strategies through mutual funds, exchange-traded funds, and separate accounts to both individual and institutional investors. A distinctive aspect of its corporate structure is that a significant portion of its profits are directed to fund medical research through the nonprofit Stowers Institute for Medical Research.

History

The firm was founded in 1958 as Twentieth Century Investors by James E. Stowers Jr., a former United States Air Force pilot and insurance salesman. Its early growth was fueled by a pioneering focus on momentum investing and the aggressive use of computer technology for security analysis, a novel approach at the time. In 1998, the company adopted its current name following a strategic partnership and minority investment from J.P. Morgan & Co., which sought to expand its asset management capabilities. A landmark event occurred in 2000 with the establishment of the unique ownership structure that directs a substantial share of profits to the Stowers Institute for Medical Research, founded by Stowers. Throughout the 21st century, it has expanded its global footprint, notably entering the European Union market and later acquiring the investment management business of HSBC's South Korea operations to strengthen its presence in Asia.

Investment philosophy and strategies

The firm's core investment philosophy is grounded in bottom-up, fundamental research conducted by specialized teams of portfolio managers and analysts. It employs a growth-oriented approach across many of its strategies, seeking companies with sustainable competitive advantages and strong earnings potential, while also maintaining a suite of value investing and blend fund offerings. Quantitative disciplines and rigorous risk management processes are integral, with many strategies utilizing proprietary models to identify market inefficiencies. Its investment teams operate within a centralized research platform, fostering collaboration across asset classes such as U.S. equities, non-U.S. equities, fixed income, and emerging markets.

Products and services

Its primary investment vehicles include a comprehensive lineup of mutual funds spanning growth stock, value stock, and fixed income categories, which are widely available through financial advisors and retirement platforms. The firm has significantly expanded its suite of exchange-traded funds, offering both actively managed and strategic beta ETFs under the Avantis Investors brand. For institutional clients such as pension funds, corporations, and endowments, it provides customized separate account management and sub-advisory services. Additionally, it offers 529 plan investment options for education savings and manages assets for various variable annuity and variable life insurance products.

Corporate structure and leadership

The company is privately held, with approximately 40% of its equity owned by J.P. Morgan Chase and the majority stake held by the Stowers Institute for Medical Research, ensuring a continuous flow of dividends to fund biomedical science. Day-to-day operations and investment management are independent of its owners, led by President and Chief Executive Officer Jonathan S. Thomas. Its global operations are divided among major offices in Kansas City, Missouri (its headquarters), New York City, London, and Hong Kong, serving clients across the Americas, Europe, and Asia-Pacific. The firm's leadership emphasizes a culture of investment excellence and client service, overseen by a board of directors comprising industry veterans and representatives from its key stakeholder institutions.

Recognition and awards

The firm and its funds have received consistent recognition from major financial rating agencies, including high ratings from Morningstar, Inc. and Lipper for long-term performance and risk-adjusted returns. Several of its portfolio managers and strategies have been honored by publications like Barron's and the Wall Street Journal within their annual fund manager rankings. Its Avantis Investors ETFs have garnered significant industry attention and awards for their innovative approach to systematic investing. Furthermore, the company's unique philanthropic model has earned it awards and recognition in the area of corporate social responsibility, distinguishing it within the financial services industry.

Category:Asset management companies of the United States Category:Companies based in Kansas City, Missouri Category:Financial services companies established in 1958