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Sustainable Investing
Nomura
Investment Strategies

Emerging Markets Sustainable Impact Equity

03/10/2020

London

Highlights

Focus on making positive social and environmental change

Experienced investment team with proven impact credentials

Through unique ownership structure, American Century{sup}®{/sup} directs 40 percent of profits to support medical research

American Century Investments (ACI) and Nomura Asset Management (NAM) announce the launch of the American Century® Emerging Markets Sustainable Impact Equity Fund, a sub-fund of Nomura Funds Ireland Plc.

The new Dublin-based UCITS fund will actively invest in 70-75 companies that demonstrate accelerating growth, located primarily in emerging markets, while contributing to one or more of the United Nations Sustainable Development Goals (SDG). There are 17 goals, of which 15 are investible goals that sit alongside the firm's investment process. The Sustainable Development Goals were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. In addition to seeking long-term growth, the fund will seek to make a positive social and environmental impact in emerging markets and provide excess return above the MSCI Emerging Markets Index. Investing in emerging markets involves the risk of loss.

Impact investing using the SDG framework is especially crucial in emerging markets. These countries need greater investment in infrastructure, technological innovation and education than more developed markets. Living standards are among the lowest in the world and socioeconomic inequalities, including gender and income, can be significant. With some of the world's most fragile ecosystems, emerging market countries are also more vulnerable to environmental damage as well as pandemics and rare regional diseases.

The emerging markets where the firms currently measure this impact include South America, China, Thailand, South Korea, Taiwan, Indonesia, India and South Africa.

The strategy will be managed by an experienced investment team led by American Century Investments' Senior Portfolio Manager Patricia Ribeiro and Portfolio Manager Sherwin Soo. Ribeiro and Soo have worked together for more than eight years and are supported by a well-resourced team of five analysts. The investment team meets with more than 2,000 companies annually and manages US$4 billion as of 12/31/2019 in emerging markets assets. The new UCITS fund will follow the same investment philosophy and process that the emerging markets equity team utilizes in managing the American Century® Emerging Markets strategy with the differentiator that it will have the ESG/SDG overlay.

The American Century® Emerging Markets Sustainable Impact UCITS will be added as a sub-fund to the Nomura Funds Ireland plc platform, which currently has US$8.5 billion as of 12/31/2019 in assets under management.

Patricia Ribeiro, Senior Portfolio manager, said: "We believe an asset manager can offer both dedication to investment performance and an opportunity to make real change for good in emerging markets around the world."

Peter Ball, Managing Director at NAM UK, commented: "The Emerging Markets Sustainable Impact Equity Fund will be our second UCITs collaboration with our strategic partner ACI. Investors increasingly want their portfolios to provide financial security but to also address key global issues, both of which can be achieved through positive social and environmental impact without sacrificing investment returns."

Jamie Downing, Global Head of Institutional Distribution at ACI, commented: "Impact investing runs deep in our DNA. It all started when our late founder James Stowers, Jr. and his wife, Virginia, transferred their equity ownership stake in American Century Investments to the endowment supporting the Stowers Institute for Medical Research, which has resulted in more than 40 percent of the global asset management firm's annual dividends being directed toward medical research. Since 2000, more than $1.6 billion in dividends have been distributed to the Institute. We view our unique ownership model and the legacy of our founders as the ultimate example of investing with impact."

Notes to Editors


A Strategic Business Partnership

On May 19, 2016, Nomura Holdings acquired a non-controlling approx. 41 percent economic interest (voting rights of 10.1 percent) in American Century Investments (ACI), an independent investment management firm in the U.S. ACI has a strong presence in the U.S. mutual fund market, which is about 22 times the size of Japan's, and has particular expertise actively managing U.S. and global equity funds. In addition, ACI has strong connections to key distribution channels including leading global advisors, banks, and insurance companies.

Given the minimal overlap between Nomura's and ACI's investment strategies, products and regional coverage, the strategic partnership enables both firms to serve a broader array of clients, bringing value to both organizations. Nomura Group's strength in Japan and Asia makes the firm an extremely attractive strategic business partner for American Century. Nomura Asset Management is accessing and leveraging ACI's expertise to offer a wider range of investment management solutions to individual and institutional clients in Japan and the rest of the world.

Nomura Asset Management

Nomura Asset Management is a leading global investment manager. Headquartered in Tokyo, Nomura has additional investment offices throughout the world including London, Singapore, Malaysia, Hong Kong, Shanghai, Taipei, Frankfurt and New York. With a global workforce of over 1,300 employees it has been operating in Europe for the past 30 years. Today Nomura Asset Management provides its clients with a wide range of innovative investment strategies including global, regional and single country equities, high yield bonds, alternative investments and global fixed income strategies. The sub-fund is registered for sale in: Austria, Luxembourg, Belgium, Netherlands, Denmark, Norway, Finland, Singapore, France, Spain, Germany, Sweden, Iceland, Ireland, United Kingdom and Italy.

International investing involves special risks, such as political instability and currency fluctuations.

This communication has been prepared for information purposes only and does not constitute an offer to buy or sell any security and does not constitute an investment recommendation or investment, accounting, tax or legal advice.

The fund is a sub-fund of Nomura Funds Ireland plc, which is authorised by the Central Bank of Ireland as an open-ended umbrella investment company with variable capital and segregated liability between its sub-funds, established as an undertaking for Collective Investment in Transferable Securities under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011. This document is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. The shares in the fund have not been and will not be offered for sale in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or to United States Persons. This document is not intended in any way to indicate or guarantee future investment results as the value of investments may go down as well as up. Values may also be affected by exchange rate movements and investors may not get back the full amount originally invested. Before purchasing any investment fund or product, you should read the related prospectus and fund documentation, including full details of all the risks associated with it, to form your own assessment and judgement on whether this investment is suitable in light of your financial knowledge and experience, investment objectives and financial or tax situation and whether to obtain specific advice from an investment professional. The prospectus and Key Investor Information Document are available in English from the Nomura Asset Management U.K. Ltd website at nomura-asset.co.uk. Nomura Asset Management U.K. Ltd. is authorised and regulated by the Financial Conduct Authority. Portfolio data source: Nomura Asset Management U.K. Ltd.

American Century Investment Management (UK) Limited is authorised and regulated by the Financial Conduct Authority.

American Century Investment Management (UK) Limited is registered in England and Wales. Registered number: 06520426. Registered office: 12 Henrietta Street, 4th Floor, London, WC2E 8LH.

About American Century Investments

  • Who We Are

    American Century Investments is a leading global asset manager focused on delivering investment results and building long-term client relationships while supporting breakthrough medical research.

  • Quick Facts

    Founded in 1958, American Century Investments' 1,400 employees serve financial professionals, institutions, corporations and individual investors from offices in Kansas City, Missouri; New York; Los Angeles; Santa Clara, California; Portland, Oregon; London; Frankfurt, Germany; Hong Kong; and Sydney.

  • Management

    Jonathan S. Thomas is president and chief executive officer, and Victor Zhang serves as chief investment officer.

  • Giving Back

    Delivering investment results to clients enables American Century Investments to distribute over 40% of its dividends to the Stowers Institute for Medical Research, a 500-person, nonprofit basic biomedical research organization. The Institute owns more than 40% of American Century Investments and has received dividend payments of more than $2 billion since 2000.

Day time view of American Century Headquarters in Kansas City, Missouri

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