RIAA certifies American Century healthcare strategy

American Century Investment’s Healthcare Impact Equity strategy has been recognised by the Responsible Investment Association Australasia (RIAA), receiving a responsible investment certification.

The certification also applies to the Zurich Investments ACI Healthcare Impact Fund, which is distributed by Zurich Investment Management Ltd and available to Australian investors.

The fund’s “investment philosophy” aligns with the third United Nations’ Sustainable Development Goal (SDG) of good health and wellbeing through a portfolio that invests in 30 to 50 companies in the healthcare industry that address significant unmet medical needs.

Elizabeth Trinh, American Century’s acting Head of Asia Pacific, said the firm was pleased to have one of its funds as one of the select few recognised by the RIAA for their impact.

“It’s testament to the work by the investment team who employ a number of responsible investing strategies to the process, including negative screening, engagement and voting, and ESG integration,” she said.

“All companies in the portfolio undergo analysis on how business improvements align with a positive impact on society. The Fund doesn’t invest in businesses it believes are inconsistent with its objective of generating positive social change.

“The strategy continues to attract strong demand from Australian institutional investors, and we anticipate the certification will only strengthen the level of interest in the Fund.”

In the four years since it was established in 2018, the fund has grown to now hold US$1.58 billion in assets under management (AUM) globally.

Michael Li, Portfolio Manager for the fund, said the recognition comes after the COVID-19 pandemic proved how the healthcare sector can produce financial returns and have better social impact.

“Healthcare has the potential to be one of the most rewarding areas for investment in the long term, allowing investors to benefit financially while also supporting a tremendous social good,” he said.

“The certification is recognition that our impact investing process is robust and effective.

“Our approach is to consistently look for those companies who can provide solutions to unmet medical needs, and the ability to do well by doing good has never been more important.”