Avantis Investors, a $9.2 billion investment offering from global asset manager American Century Investments, today launched two new funds based on feedback and demand from clients.
The Avantis Responsible U.S. Equity (AVSU) and the Advantis Responsible International Equity (AVSD) each listed on the NYSE on March 17 with expense ratios of 15 basis points and 23 basis points, respectively.
AVSU invests in a broad set of U.S. companies across all market capitalizations and is designed to increase expected returns by overweighting securities that the firm believes to be trading at lower valuations and with higher profitability ratios, according to the firm.
As of Thursday, the fund’s largest holdings include Apple, Microsoft Corp., Amazon.com Inc., and Alphabet.
AVSD invests in non-U.S. developed countries across all market capitalizations and, similarly to AVSU, is designed to increase expected returns by overweighting securities that the firm believes to be trading at lower valuations with higher profitability ratios.
The top holdings in AVSD as of Thursday include Roche Holding, Novartis, Nestle, ASML Holding, and Toyota Motor Corp.
Both funds limit the investable universe of companies by screening out those that raise concerns based on the team’s evaluation of multiple ESG metrics and pursue the benefits associated with indexing but with the ability to add value by making investment decisions using information based on proprietary evaluations, according to the firm.
Advantages of both AVSU and AVSD are efficient portfolio management and trading processes that are designed to enhance returns while seeking to reduce unnecessary risks and transaction costs, according to the firm.
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