On the heels of its September one-year anniversary, Avantis Investors, a $2 billion investment brand from global asset manager American Century Investments, today announced the launch of two new low-cost, broadly diversified fixed income exchange traded funds (ETFs): Avantis® Core Fixed Income (AVIG) and Avantis® Short-Term Fixed Income (AVSF). The new strategies, listed on the New York Stock Exchange (NYSE Arca, Inc.), are designed to seamlessly augment investors’ asset allocation.
“We’re excited to announce an expansion of our investment capabilities into fixed income,” said Eduardo Repetto, Avantis CIO. “Since we launched our equity strategies about a year ago, in every client conversation it is clear that investors want well-designed, low-cost solutions. Fixed income is an important part of an asset allocation, and we think our approach will resonate with investors.”
Both AVIG and AVSF will each have an expense ratio of 0.15%. The firm expects these strategies to be launched as mutual funds offered with an Institutional Class at the same total annual operating expense ratio shortly after the ETFs launch. The team also plans to expand its fixed income offerings into the municipal ETF and mutual fund space later this year.
The funds invest primarily in investment grade quality debt obligations from a diverse group of U.S. and non-U.S. issuers. The funds’ investment process uses an analytical framework, which includes an assessment of securities’ expected income and capital appreciation, to seek securities with high expected returns.1
Like their equity ETF counterparts, these fixed income strategies are diversified, tax-efficient and cost-effective and they each rely on a proprietary systematic investment approach.
AVIG and AVSF will be co-managed by Repetto, Senior Portfolio Manager Hozef Arif, Senior Portfolio Manager Mitchell Handa and Senior Portfolio Manager Daniel Ong, CFA. Arif and Handa both held portfolio management positions with Pacific Investment Management Company (PIMCO); Ong previously was a senior portfolio manager with Dimensional Fund Advisors (DFA).
The two new fixed income funds join Avantis Investors’ five inaugural equity exchange traded funds (ETFs), launched during September 2019, followed by five mutual funds that mirror the 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).
Avantis Investors is led by Eduardo Repetto, chief investment officer, and Patrick Keating, chief operating officer.
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’ 1,400 employees serve investment professionals, institutions, corporations and individual investors from offices in New York; London; Hong Kong; Frankfurt, Germany; Sydney; Mountain View, Calif.; and Kansas City, Mo. 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 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 $1.6 billion since 2000. For more information about American Century Investments, visit www.americancentury.com.
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