2021, A Year of Milestone, Research, and Award for American Century
James E. Stowers founded American Century Investments in 1958, six decades ago. An asset management company, American Century Investments is a global firm with eight offices employing more than 1,400 professionals. The firm’s approach to asset management is to deliver long-term, superior, risk-adjusted performance for its clients.
In 2021, American Century Investments marked the year researching worker sentiment,
reaching milestones, and earning awards. Stowers founded American Century Investments in his one-bedroom apartment in Kansas City with the single-minded purpose of helping investors achieve their intended financial goals. Starting with $100,000 in seed money from 24 investors and two mutual funds, Stowers grew the firm to the point that today it is considered one of the country’s top money managers, overseeing $250 billion in assets under management (AUM).
The company announced that it had reached $250 billion in AUM in November 2021. A sustainable and innovative company that is client-focused, the firm has expanded through diversification and expansion into new markets and distribution channels that now serve clients in more than 30 countries
According to the November 2021 release, one catalyst driving the firm’s expansion is its focus on sustainability. The firm has an ownership structure that directs 40 percent of its profits to life-changing medical research. According to the firm, when clients achieve their financial goals, it is possible to support initiatives with a greater purpose.
In the past year and a half, organizations have recognized the firm’s success. For example, in March 2021, American Century Investments received the US 2021 Best Overall Large Firm and Best Equity Large Group Awards. The awards are based on the Lipper Leader that measures performance over 36, 60, and 120 months. The fund with the highest Lipper Leader for Consistent Return in each class receives the award. Another award the company won was Barron’s Best Family Fund 2021.
Besides making money for investors and winning awards, the firm has also developed a research platform. The firm measured American consumer sentiment regarding the market. Published in an August 2021 release, the study found that market risk was a major concern for American workers over a year after the pandemic brought the economy to a halt.
The study surveyed 1,500 workers ages 25 to 65 to determine their worries and regrets regarding pandemic impacts and retirement savings, grouping respondents in Baby Boomers, Generation X, and Millennials categories. In addition to market risk, longevity risk was also a concern for retirement plan participants. The report also revealed that many American workers are not as confident about managing their money in retirement.
Seventy-six percent of workers reported they felt more comfortable leaving their money in a 401(K) if the retirement plan had a withdrawal solution. Two out of three people said knowing how much to withdraw for living expenses, but only six out of ten know how to make money last during retirement. Also, seven out of ten needed guidance on withdrawing money from their retirement accounts. Finally, three out of four people would be interested in some holistic financial advice.
Since the first survey in 2013, many respondents expressed both regrets regarding saving more and not starting earlier. However, today employees count on their employers to help them set themselves up for financial success.
