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American Century and Nomura launch impact EM fund

Emerging_marketsNomura Asset Management (NAM) and American Century Investments (ACI) have launched a sustainable impact equity fund.

The Dublin-domiciled Ucits strategy will actively invest in between 70 and 75 companies, primarily in emerging markets, that “demonstrate accelerating growth”.

Key criteria of the portfolio are that the investee companies contribute to one or more of the United Nations Sustainable Development Goals (SDGs), of which there are 17 in total.

The strategy will also seek to make a positive social and environmental impact in emerging markets whilst aiming to outperform the MSCI Emerging Markets Index.

The American Century Emerging Markets Sustainable Equity Fund will be managed by ACI senior portfolio manager Patricia Ribeiro alongside Sherwin Soo.

Peter Ball, managing director at NAM UK, said: “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.”

The firms stated that impact investing using the UN’s 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,” they said in a statement on Tuesday.

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