Avantis Investors® by American Century Investments® Launches Suite of Low-Cost Mutual Funds
KANSAS CITY, Mo. December 4, 2019 – Avantis Investor® , by American Century Investments® today launched five low-cost mutual funds that share the same strategies with the Avantis exchange traded funds (ETFs) it rolled out in late September.
As a unique feature designed to benefit various types of investors, expense ratios for the five funds are identical to their corresponding ETFs:
Avantis International Small Cap Value (AVDVX): 0.36%
Avantis International Equity (AVDEX): 0.23%
Avantis Emerging Markets Equity (AVEEX): 0.33%
Avantis U.S. Equity (AVUSX): 0.15%
Avantis U.S. Small Cap Value (AVUVX): 0.25%
"Our goal is to deliver low-cost, broadly diversified solutions in a variety of formats, including mutual funds and ETFs," said Avantis Investors Chief Investment Officer Eduardo Repetto, PhD. "We want advisors and their clients to be able to choose the optimal vehicle to fit their circumstances."
The mutual funds, available in Institutional share classes, join the Avantis Investors lineup of low-cost, broadly diversified exchange traded funds (ETFs): Avantis International Small Cap Value ETF (AVDV), Avantis International Equity ETF (AVDE), Avantis Emerging Markets Equity ETF (AVEM), Avantis U.S. Equity ETF (AVUS) and Avantis U.S. Small Cap Value ETF (AVUV). More than $440 million as of November 30 has been invested in the ETFs since their launch in late September.
Avantis Investors' mutual funds and ETFs have an investment approach built upon an academically-supported, market-tested framework that aims to identify securities with higher expected returns¹ based on their current market prices and other company financial information. As part of its portfolio management and trading processes, the team analyzes whether the perceived benefits of a trade overcome its associated costs and risk. This approach aims to harness return premiums while seeking to control implementation costs and mitigate portfolio risk to generate enhanced returns over time. The term "Avantis" is a derivative of the Italian word for "going forward" and evokes the forward-thinking methodology utilized by the new solutions.
Information about the five funds, which all seek long-term capital appreciation, follows:
Avantis International Small Cap Value: The fund primarily invests in a broad group of non-U.S. small cap value companies believed to have higher expected returns across developed market countries, sectors and industries. The portfolio is designed to help investors achieve higher expected returns by investing in non-U.S. developed small cap companies believed to be trading at low valuations and with higher profitability ratios, seeking broad diversification across companies, industrial sectors and countries in order to mitigate concentration risk.
Avantis International Equity: The fund primarily invests in a diverse group of companies of all market capitalizations, across non-U.S. developed market countries, sectors and industries, emphasizing investment in companies believed to have higher expected returns. The portfolio is designed to help investors achieve higher expected returns and broad diversification by investing in a broad set of large, mid and small capitalization companies across non-U.S. developed countries. Aiming to increase expected returns, the strategy deviates from market capitalization weights by overweighting securities believed to be trading at lower valuations and with higher profitability ratios.
Avantis Emerging Markets Equity: The fund primarily invests in a diverse group of companies of all market capitalizations, across emerging market countries, sectors and industries, emphasizing investment in companies believed to have higher expected returns. The portfolio is designed to help investors achieve higher expected returns and broad diversification by investing in a broad set of large, mid and small capitalization companies across emerging market countries. Aiming to increase expected returns, the strategy deviates from market capitalization weights by overweighting securities believed to be trading at lower valuations and with higher profitability ratios.
Avantis U.S. Equity: The fund invests primarily in a diverse group of U.S. companies of all market capitalizations, across sectors and industries, emphasizing investment in companies believed to have higher expected returns. The portfolio is designed to help investors achieve higher expected returns and broad diversification by investing in a broad set of U.S. large, mid and small capitalization companies. Aiming to increase expected returns, the strategy deviates from market capitalization weights by overweighting securities believed to be trading at lower valuations and with higher profitability ratios.
Avantis U.S. Small Cap Value: The fund primarily invests in a broad group of U.S. small cap value companies believed to have higher expected returns across sectors and industries. The portfolio is designed to help investors achieve higher expected returns by investing in U.S. small cap companies believed to be trading at low valuations and with higher profitability ratios, seeking broad diversification across companies and industrial sectors in order to mitigate concentration risk. For more information about the strategies, visit www.AvantisInvestors.com.
All five funds and ETFs are comanaged by Repetto, who previously served as co-chief executive officer/chief investment officer of Dimensional Fund Advisors (DFA), as well as Senior Portfolio Manager Daniel Ong, CFA, Senior Portfolio Manager Mitchell Firestein and Senior Portfolio Manager Ted Randall.
American Century Investments 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, American Century Investments' 1,300 employees serve investment professionals, institutions, corporations and individual investors from offices in New York; London; Hong Kong; Frankfurt, Germany; Mountain View, Calif.; and Kansas City, Mo. Jonathan 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 percent of its dividends to the Stowers Institute for Medical Research, a 500-person, non-profit basic biomedical research organization. The Institute owns more than 40 percent of American Century Investments and has received dividend payments of $1.5 billion since 2000. For more information about American Century Investments, visit AMERICANCENTURY.COM >.
You should consider the fund's investment objectives, risks, and charges and expenses carefully before you invest. The fund's prospectus or summary prospectus, which can be obtained by visiting www.AvantisInvestors.com or calling 1-833-9AVANTIS, contains this and other information about the fund, and should be read carefully before investing. Investments are subject to market risk.
¹ Valuation theory shows that the expected return of a stock is a function of its current price, its book equity (assets minus liabilities) and expected future profits, and that the expected return of a bond is a function of its current yield and its expected capital appreciation (depreciation). We use information in current market prices and company financials to identify differences in expected returns among securities, seeking to overweight securities with higher expected returns based on this current market information. Actual returns may be different than expected returns, and there is no guarantee that the strategy will be successful.
Exchange Traded Funds (ETF) 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.
International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks.
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.
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.
©2019 American Century Proprietary Holdings, Inc.
