With growing investor demand for alternative investment strategies, American Century Investments introduces three new alternative portfolios. Core Equity Plus, Disciplined Growth Plus and Market Neutral Value will employ short selling but in different proportions and using different investment approaches. These new portfolios complement American Century Investments current alternative strategies: Real Estate, Global Real Estate, Global Gold, Strategic Inflation Opportunities and Equity Market Neutral.
Core Equity Plus and Disciplined Growth Plus are managed by Asset Allocation and Quantitative Equity Chief Investment Officer Scott Wittman and Senior Portfolio Manager Bill Martin. Core Equity Plus team also includes portfolio manager Claudia Musat, while Lynette Pang is a portfolio manager on Disciplined Growth Plus. Both teams share five investment research analysts.
The new quantitative strategies are designed to meet the evolving needs of our clients, who are looking beyond long-only strategies for potential sources of excess return, said Wittman. The ability to incorporate limited shorting allows us to capture return from our insights into underperforming companies.
The Market Neutral Value portfolio is managed by U.S. Value Equity Chief Investment Officer Phil Davidson and portfolio managers Michael Liss and Kevin Toney. Six investment research analysts will support the portfolio management team. The U.S. Value Equity team is one of the longest tenured teams at American Century Investments.
Market Neutral Value strategy is an extension of what we have been doing the past 18 years on the U.S. Value Equity team, said Davidson. We will seek to exploit differences in stock prices by being long and short in stocks within the same sector, industry and market capitalization.
The use of alternative investment strategies by financial intermediaries is widespread and growing. American Century Investments recently conducted new research about alternative investments: 2011 Financial Professionals Alternative Investments Study. It showed 80 percent of study participants report they are currently using alternative investments with their clients, while an astounding 95 percent have some level of experience with these strategies. And, among those currently using alternative strategies, 55 percent plan to increase use in the next year.
Following are details on each of the three new alternative strategies.
Core Equity Plus: Core Equity Plus is a 130/30 version of the American Century
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