American Century Investments and Nomura Launch Active High Yield Bond ETF
The new ETF will be under-advised by Nomura Corporate Research and Asset Management (NCRAM) and will have the same investment philosophy as the American Century High-Income mutual fund created seven years ago, while focusing on bonds. High yield BB and B rated. AHYB seeks to provide high current income and offers the opportunity to access a high yield strategy with strong risk-adjusted return potential. The fund has an expense ratio of 0.45% and will disclose its holdings daily.
âIn today’s environment where investors are looking for robust yield, we are delighted to now offer our high yield product as an ETF with our strategic partners at Nomura,â said Ed Rosenberg, head of the firm’s ETFs. “We believe this is one way to continue to strive to meet customer demand for high income in this low performing environment.”
The ETF will be managed by an experienced investment team led by the Managing Director and the Investment Director of NCRAM. David Crall. Crall joined NCRAM in 1992. âWe are delighted to offer an alternative fixed income solution to help meet customer demand,â said Crall. âThis product will give us the opportunity to invest in high yield bonds of relatively higher credit quality where the team believes there are generally fewer defaults, lower volatility and improved liquidity. ”
The fund will be managed by the NCRAM portfolio managers Amy Yu Chang, Stephen kotsen, Derek Leung and portfolio manager American Century RenÃ© Casis. Chang joined NCRAM in 1999 and has been a portfolio manager since 2007. Kotsen joined NCRAM in 1998 and has been a portfolio manager since 2000. Leung joined the company in 1998 and has been a portfolio manager since 2019. Casis joined American Century in 2018 and started in the investment industry in 1999.
American Century has been one of the fastest growing new entrants to the ETF space, according to Rosenberg. âIn fact, over the past three years American Century Investments (American Century and Avantis Investors) has launched 28 ETFs. Our initial offerings were American Century STOXXÂ® American Quality Value (VALQ), American Century Diversified Corporate Bond (KORP), and American Century Quality Diversified International ETF (QINT), âhe said. (STOXX is a registered trademark of STOXX, Ltd.)
American Century Investments is a leading global asset manager focused on delivering investment results and building long-term client relationships while supporting research that can improve human health and save lives. Founded in 1958, the 1,400 employees of American Century Investments serve financial professionals, institutions, businesses and individual investors from offices located in new York; London; Hong Kong; Frankfurt; Sydney; Los Angeles; Mountain view, California; and Kansas City, Missouri Jonathan S. Thomas is President and Chief Executive Officer, and Victor Zhang holds the position of Director of Investments. Delivering investment results to clients allows American Century Investments to distribute more than 40 percent of its dividends to the Stowers Institute for Medical Research, a not-for-profit basic biomedical research organization of 500 people. The Institute owns over 40 percent of American Century Investments and has received dividend payments from $ 1.7 billion since 2000. For more information on American Century Investments, visit americancentury.com.
Nomura Asset Management is one of the world’s leading investment managers. Based at Tokyo, Nomura Asset Management has additional investment offices around the world, including London, Singapore, Malaysia, Hong Kong, Shanghai, Taipei, Frankfurt and new York. With a global workforce of over 1,400 employees, Nomura Asset Management offers its clients a wide range of innovative investment strategies, including global, regional and national equities, high yield bonds, alternative investments and global strategies. fixed income.
Nomura Corporate Research and Asset Management Inc. (NCRAM) has been Nomura’s sub-grade credit boutique since its inception in 1991. NCRAM specializes in managing US and global high yield bond strategies and has applied its corporate philosophy. proven high yield investment investing for over 30 years.
You should carefully consider the investment objectives, risks, charges and expenses of the fund before investing. The fund’s prospectus or summary prospectus, which can be obtained by visiting Avantisinvestors.com or by calling 833-928-2684; for American Century products, visit americancentury.com. This document contains this and other information about the fund and should be read carefully before investing.
Exchange-traded funds (ETFs) are bought and sold on an exchange at market price (not net asset value) and are not individually redeemed by the fund. Shares may be traded at a premium or at a discount to their net asset value in the secondary market. Brokerage commissions will reduce returns.
This fund is an actively managed ETF that does not seek to replicate the performance of a specified index. In determining whether to buy or sell a security, the portfolio managers take into account, among other things, the various requirements and standards of the fund, as well as economic conditions, alternative investments, interest rates and various market metrics. credit. If the portfolio manager’s considerations are inaccurate or misapplied, the performance of the fund may suffer.
Generally, as interest rates rise, the value of the securities held in the fund decreases. The reverse is true when interest rates fall.
Lower rated securities in which the fund invests are subject to higher credit risk, default risk and liquidity risk.
Credit quality ratings on the underlying securities of a fund are obtained from three nationally recognized statistical rating organizations (âNRSROâ), Standard & Poor’s, Moody’s and Fitch. Ratings are converted to Standard & Poor’s equivalent rating category for presentation purposes. For municipal funds, each title is given the highest rating provided by the NRSROs. An âunlistedâ designation is assigned when a public rating is not available for a security. This designation does not necessarily indicate low credit quality. Letter ratings are provided to indicate the creditworthiness of the underlying obligations in the portfolio. Long-term ratings typically range from AAA (highest) to D (lowest).
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Nomura Corporate Research and Asset Management (NCRAM) is affiliated with American Century Investments. NCRAM is not affiliated with Foreside Fund Services, LLC.
Exchange Traded Funds (ETFs): Foreside Fund Services, LLC – Distributor, not affiliated with American Century Investment Services, Inc.
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SOURCE American Century Investments