Our Trading Methodology (Part I)

The American Century Investments® trading team strives to be at the forefront of investment industry innovation, with the goal of achieving the best results for our clients. The company was a pioneer in the growth of electronic trading with a focus on lowering clients’ explicit commission costs, while minimizing information leakage and market impact.

Consistent, Cutting-Edge Approach

The trading team at American Century Investments has followed the lead of the company’s founder, Jim Stowers, by creating a system driven by innovation. Mr. Stowers utilized a financial security analysis program back in 1967, well before personal computers became a mainstream investing tool. The same can be said about the company’s security trading team, which has been an innovator in the field of electronic trading. The team leverages their collective experience and technology to lower trading costs for the company’s clients.

Proprietary Methods Drive Innovation

The trading team’s proprietary order management system drives innovation and allows the team to adapt to changes in the industry quickly and efficiently, with no vendor lead time. This technology allows the team the flexibility to interact in the markets and best serve the company’s client base.

Algorithmic Trading

Computer algorithms, or formulas, are based on investors’ individual requirements. Computers can process large amounts of information rapidly, analyze data patterns and place trades at a high frequency. Trading algorithms also utilize quantitative approaches in an attempt to minimize risk, with the potential for better performance; monitor execution progress in real time; and adjust trading strategies continually. By leveraging quantitative approaches and advanced technologies, the trading team’s algorithms play an important role in the team’s pursuit of best execution.

The opinions expressed are those of our investment professionals, and are no guarantee of the future performance of any American Century Investments® portfolio. This information is not intended to serve as investment advice; it is for educational purposes only.