Continued stability and solid performance across investment teams would further confidence, and the firm maintains an Average Parent rating.
The firm’s gains in the ETF market, which it entered in 2019 by launching Avantis Investors, demonstrate its capability to create and execute a winning recipe. Thoughtful product development and low fees have helped the firm gain market share in a competitive area. As of March 2024, American Century had more than USD 40 billion in ETF assets under management, constituting nearly 30% of the firm's total fund assets under management.
A noteworthy ownership structure supports a long-term orientation. The Stowers Institute for Medical Research owns 45% of the firm. Nomura, a client and a strategic partner, owns 40%. Employees own the remaining 15%, which should encourage retention.
Within the firm's mutual fund business, which represents the majority of its assets, the value and growth equity franchises oversee some of the firm's best-rated funds. They have shown prudent succession planning and consistent execution. Other groups, such as the disciplined equity and multi-asset groups, need stronger track records of stability and performance to recommend. Fees could be lower across the board for mutual funds.