Avantis Investors® Launches U.S. Small Cap Equity Fund
June 20, 2024 - Kansas City, Mo. - Avantis Investors®, a $45 billion* investment offering from the $245 billion** global asset manager American Century Investments®, expands its investment capabilities with the launch of a new mutual fund, Avantis U.S. Small Cap Equity Fund (AVSCX).
AVSCX shares the Avantis Investors philosophy of being diversified, tax efficient and cost effective. The fund invests primarily in a diverse group of U.S. small cap companies across market sectors and industry groups. The fund seeks securities of companies that it expects to have higher returns by placing an enhanced emphasis on securities of companies with smaller market capitalizations and securities of companies with higher profitability and value characteristics. It has an expense ratio of 0.25%.
"We designed this mutual fund to follow the same strategy as the Avantis U.S. Small Cap Equity ETF (AVSC)," said Phil McInnis, chief investment strategist, Avantis Investors. "We are driven by the needs of our clients and have several interested in deploying this strategy in retirement plan lineups."
The fund will be co-managed by Chief Investment Officer Eduardo Repetto, Senior Portfolio Managers Mitchell Firestein, Daniel Ong, CFA and Ted Randall, and Portfolio Manager Matthew Dubin. AVSCX joins Avantis' lineup of ETFs and mutual funds spanning equities, fixed income and real estate. The full lineup is available here.
"AVSCX is a mutual fund version of our U.S. small cap strategy and looks to build off the success of AVSC, which was launched in early 2022 and now has over $1 billion in assets under management***," said Firestein. "We can build a small cap strategy that has broad diversification, similar to some passive options, while being thoughtful about valuations and implementation in an effort to improve expected results over time."
Avantis helps clients achieve their investment goals through a persistent focus on providing well-diversified investment solutions that fit seamlessly into asset allocations and combine the potential for added value with the consistency of indexing. Repetto and Chief Operating Officer Patrick Keating, CFA, CPA have led Avantis since its 2019 start.
About American Century Investments
American Century Investments is a leading global asset manager focused on delivering investment results and building long-term client relationships while supporting breakthrough medical research. Founded in 1958, American Century Investments' 1,400 employees serve financial professionals, institutions, corporations and individual investors from offices in Kansas City, Mo.; New York; Los Angeles; Santa Clara, Calif.; Portland, Ore.; London; Frankfurt, Germany; Hong Kong; and Sydney. Jonathan S. Thomas is president and chief executive officer, and Victor Zhang serves as chief investment officer. Delivering investment results to clients enables American Century Investments to distribute over 40% of its dividends to the Stowers Institute for Medical Research, a 500-person, nonprofit basic biomedical research organization. The Institute owns more than 40% of American Century Investments and has received dividend payments of more than $2 billion since 2000. For more information about American Century Investments, visit americancentury.com.
*Assets under supervision as of 5/9/24.
**Assets under supervision as of 5/15/24.
***Assets under supervision as of 6/13/24.
You should consider the fund's investment objectives, risks, charges and expenses carefully before you invest. The fund's prospectus or summary prospectus, which can be obtained by visiting avantisinvestors.com or calling 1-833-928-2684, contains this and other information about the fund, and should be read carefully before investing. Investments are subject to market risk.
Exchange Traded Funds (ETFs) are bought and sold through exchange trading at market price (not NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV 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. To determine whether to buy or sell a security, the portfolio managers consider, among other things, various fund requirements and standards, along with economic conditions, alternative investments, interest rates and various credit metrics. If the portfolio manager considerations are inaccurate or misapplied, the fund's performance may suffer.
Historically, small- and/or mid-cap stocks have been more volatile than the stock of larger, more-established companies. Smaller companies may have limited resources, product lines and markets, and their securities may trade less frequently and in more limited volumes than the securities of larger companies.
Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.
Exchange Traded Funds (ETFs): Foreside Fund Services, LLC - Distributor, not affiliated with American Century Investment Services, Inc.
Mutual Funds: American Century Investment Services, Inc., Distributor.
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