Sponsored by

American Century Investments

Revisiting Earnings Acceleration as a Source of Diversifying Excess Returns

Is earnings acceleration an underused source of diversification and excess return? See what the new data shows across market cycles, regions, sectors, and factors.

In this masterclass, we examine earnings acceleration as a potential source of significant, durable and diversifying excess returns by comparing an “acceleration” portfolio with a “deceleration” portfolio using global equity data.

We look to analyse whether earnings acceleration portfolio may be additive both to the returns and diversification of a broader equity portfolio with more traditional style exposures.

About American Century Investments

American Century Investments (“ACI”) 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, ACI’s 1,500 employees serve investment professionals, institutions, corporations and individual investors from offices in New York; London; Hong Kong; Sydney; Mountain View, Calif.; and Kansas City, Mo. Current assets under management and advice total $246bln.

- Performance focused for over 60 years – our investment culture shares the common goal of delivering superior, long-term risk adjusted performance

- Pure Play Business Model – solely focused on investment management

- Privately Controlled and Independent – unburdened by quarterly earnings pressure allows us to maintain a long-term view in the best interests of our clients

- Prosper With Purpose® - Jim Stowers Jr., the founder of American Century, and his wife Virginia established and endowed the Stowers Institute for Medical Research, a world-class biomedical research organization dedicated to uncovering the causes, treatments and prevention of genetically based diseases, like cancer.

ACI is organised along investment disciplines:

Global and Non-US Growth Equity including Large Cap, Small Cap and EME

Global Value Equity including Global Dividend Value, Global REITs, Mid and Small Value Equity

Disciplined Equity including Large Cap Core, Large Cap Growth, Small Cap Core

Global Fixed Income including GFI, EM Debt, US Core Fixed Income, Short Duration and Multi-Sector Credit

Avantis Investors – our newest offering which utilises financial science to seek higher expected returns with well-diversified strategies managed by an efficient and repeatable process.

Delivering investment results to clients enables American Century Investments to distribute over 40 percent of its dividends to the Stowers Institute for Medical Research, a 550-person, non-profit biomedical research organization. The Institute owns more than 40 percent of American Century Investments and has received dividend payments of US$1.7 billion since 2000. American Century Investments is a signatory to the United Nations Principles of Responsible Investing, the world’s leading proponent of responsible investment. For more information about American Century Investments, visit www.americancentury.com.

Workshop: Acceleration of Earnings in Active Investment Management

American Century Investments in collaboration with mallowstreet is pleased to be hosting a mallowstreet University breakfast workshop. Bernard Chua, Vice President – Client Portfolio Manager, will be joining us from the USA to discuss the use of Acceleration of Earnings as a tool in Active Investment Management.

Successful active management of equities relies on identifying repeatable market inefficiencies and exploiting these through a portfolio of stocks. What are some of the more well known and documented inefficiencies and the less well known factor: acceleration of earnings? Using a recent academic study we explore the valuable information within earnings acceleration to outperform in broad markets, and discuss how this can be applied.

We will take a brief look at history in terms of the more significant financial factors developed and then look closely at the human reasons why inefficiencies exist, in particularly looking at behavioural finance concepts at work, such as conservatism and anchoring.

This is a FREE event exclusively for Pensions Consultants and Advisors. Please note that spaces are limited and available on a first come first serve basis. To avoid disappointment please register for this event.

Speakers

Bernard Chua, Vice President and Client Portfolio Manager, will give his perspective on this topic.

Click on his photo to find out more about him:

Bernard Chua